Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Presentation (March 2019)
45 slides from Nomad Foods's investor presentation, Mar 19, 2019
Slide 1: Equity Offering Presentation March 2019
Equity Offering Presentation March 2019 Exhibit 99.2
Slide 2: Disclaimer
Disclaimer This presentation shall not constitute an offer to sell or a solicitation of an offer to purchase securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which or to any person to whom such an offer, solicitation or sale would be unlawful. The i
Slide 3: Today's Presenters
Today’s Presenters Stefan Descheemaeker Chief Executive Officer
Slide 4: Offering Summary
Offering Summary Issuer Nomad Foods Limited Exchange / Ticker NYSE / “NOMD” Offering Size 20 million shares (100% Primary) Greenshoe 15% / 3 million shares (100% Primary) Expected Pricing March 19, 2019 Bookrunners Goldman Sachs, Barclays, Citi, Credit Suisse, UBS Use of Proceeds General corporate p
Slide 5: A European Market Leader in Frozen Food
A European Market Leader in Frozen Food Growing From the Core Creating Shareholder Value
Slide 6: Nomad Foods is a European Market Leader in Frozen Food
Nomad Foods is a European Market Leader in Frozen Food In Western Europe’s €26B Savory Frozen Food Category €2.2B Revenue 4,800 Company Employees 90% Of Core Portfolio Ranked #1 or #2 in Market Share 13 Primary Countries Across Western Europe
Slide 7: A Leader in Western Europe Frozen Food
A Leader in Western Europe Frozen Food 14% market share Total Retail Sales Value €26B Western Europe Savory Frozen Food Source: Euromonitor, 2018; branded only
Slide 8: Strong Frozen Food Market Share at Local Category Level
Total Share Seafood Share Vegetables Share Strong Frozen Food Market Share at Local Category Level #1 or 2 in market share 90% of core portfolio Figures above represent market share rank based on Euromonitor, 2018; branded only Countries are ranked in order of 2018 revenues from left to right #1 #1
Slide 9: Portfolio Breadth Across Most Frozen Savory Categories
Seafood Portfolio Breadth Across Most Frozen Savory Categories Potatoes Vegetables 26% Ready Meals Western Europe Savory Frozen – Market Share by Category €4.4B Pizza 3% €4.3B 12% €3.8B 23% €3.0B 6% €1.6B 6% Red Meat Poultry €1.5B 21% Baked Goods €1.4B 1% Meat Substitutes 3% Fruit 2% Soup 34% €0.3B
Slide 10: Iconic Brands Modernized for Today's Consumer
Iconic Brands Modernized for Today’s Consumer
Slide 11: A Diversified Portfolio across Countries, Categories & Brands
A Diversified Portfolio across Countries, Categories & Brands Seafood Vegetables Ready Meals Other UK Other Germany Italy Other Figures above represent mix of 2018 net revenues
Slide 12: Frozen Food is a Growing Category
Frozen Food is a Growing Category 2013 2018 2023 €30B PROJECTED €26B €24B Source: Euromonitor Note: Data reflects Western Europe frozen savory category.
Slide 13: Growing From the Core
A European Market Leader in Frozen Food Growing From the Core Creating Shareholder Value
Slide 14: Track Record of Strong Financial Performance
Track Record of Strong Financial Performance NET REVENUES REPORTED EPS €0.20 €0.97 2016 2018 ADJUSTED EPS €0.84 €1.19 2016 2018 2016 Current $1.8B $3.8B MARKET CAP +15% +116% €1.9B €2.2B Note: growth rates represent percentage change from full year 2016 to full year 2018. Current market cap is based
Slide 15: A Proven Growth Model
Out Execute In-store Out Execute In-store Innovate To Break Drive & Leverage Our Scale Create Distinctive Through Category Leadership Through Penetration Barriers Brands Innovate To Break Out Execute In-store GROWTH MODEL A Proven Growth Model Eight Consecutive Quarters of Organic Revenue Growth
Slide 16: Prioritizing the Core
Secondary Secondary Categories Other 2018 Organic Revenue Growth = 2.6% Prioritizing the Core Organic Revenue Growth has Been Driven by the Core Total Growth Core Growth 6 * Core categories represent the highest gross margin / greatest market share categories and receive a disproportionate level of
Slide 17: Opportunity to Further Develop Commercial Capabilities
Opportunity to Further Develop Commercial Capabilities 17 Media Efficiency Increase working media spend with high improved execution and higher ROI Net Revenue Management Promo optimization & pricing implemented PPA and trade terms in development Space & Place Optimize placement in traditional trade
Slide 18: Driving Digital Media Engagement
Driving Digital Media Engagement 18 Digital % of Total Media Spend p.17 of markup 1
Slide 19: Strengthening Net Revenue Management Capabilities
2016 2017 2018 2019 2020 Trade Terms Price Pack Architecture Price Promotions Teams & Capabilities Strengthening Net Revenue Management Capabilities 19 Stage of Development Basic Intermediate Advanced p.18 of markup 2
Slide 20: Raising Our Profile in Nutrition & Sustainability
Raising Our Profile in Nutrition & Sustainability 20 p.20 of markup 3
Slide 21: Activated Our Innovation Pipeline in 2018
New products as a % of Net Sales Activated Our Innovation Pipeline in 2018 21 p.21 of markup 4
Slide 22: Attracting Millennials with Modern Veggies
Attracting Millennials with Modern Veggies MODERN CONCEPTS CLEAN LABELS HIGH IN PROTEIN 22 p.23 of markup 4
Slide 23: Expanding on the Recent Plant Protein Launch in the Nordics
Expanding on the Recent Plant Protein Launch in the Nordics 23 p.24 of markup 4
Slide 24: Distribution Opportunity to Further Optimize Space & Place
Distribution Opportunity to Further Optimize Space & Place 24 OPTIMIZE RETAIL EXECUTION GROW WITH HARD DISCOUNTERS FURTHER PENETRATE ONLINE 5
Slide 25: Creating Shareholder Value
25 A European Market Leader in Frozen Food Growing From the Core Creating Shareholder Value
Slide 26: A Track Record of Strong Financial Performance
A Track Record of Strong Financial Performance 26 +3% +8% +116% €376M €328M €325M €2.2B €2.0B €1.9B €171M Revenue figures from 2016 – 2018 reflect total revenues, including acquisitions, which are reflected from the close date of acquisition. Note: percentage growth rates reflect average for organic
Slide 27: 2018 Financial Results Overview
2018 Financial Results Overview 27 Organic Revenue Growth Adjusted EBITDA Adjusted EPS Converted 99% of Adjusted EBITDA into Adjusted Operating Cash Flow Leverage of 3.8x Net Debt / Adjusted EBITDA as at December 2018 (this is expected to fall to below 3.0x1 following the equity offering) Strong Mom
Slide 28: Long Term Drivers of EBITDA Margin Expansion
Long Term Drivers of EBITDA Margin Expansion 28 NET REVENUE MANAGEMENT SUPPLY CHAIN PRODUCTIVITY EXPENSE DISCIPLINE
Slide 29: Strong Balance Sheet and Cash Flow Generation
Strong Balance Sheet and Cash Flow Generation 29 Defined as Adjusted EBITDA less change in working capital, capital expenditures, cash taxes and cash interest & other Adjusted Free Cash Flow Leverage of 3.8x Net Debt / Adjusted EBITDA as at December 2018 (this is expected to fall to below 3.0x1 foll
Slide 30: Nomad Foods Acquisition Strategy
Nomad Foods Acquisition Strategy 30 Consolidate European frozen food and beyond Create value through focus & operational excellence Leverage growth model to drive commercial synergies Realize cost synergies through economies of scale Pursue accretive M&A to complement organic growth
Slide 31: Demonstrated Ability to Drive Value Through M&A
Demonstrated Ability to Drive Value Through M&A 31 Proven ability to integrate acquisitions, leverage Nomad capabilities and execute business plan Purchase Price: €239m Market Leading Brands with Innovative Edge Categories with Strong Growth Opportunities Cash Flow Generation Scale and Skill Synergi
Slide 32: Offering Summary
Offering Summary 32 Issuer Nomad Foods Limited Exchange / Ticker NYSE / “NOMD” Offering Size 20 million shares (100% Primary) Greenshoe 15% / 3 million shares (100% Primary) Expected Pricing March 19, 2019 Bookrunners Goldman Sachs, Barclays, Citi, Credit Suisse, UBS Use of Proceeds General corporat
Slide 33: Thank You
Thank You Nomad Foods
Slide 34: Appendix
Appendix Nomad Foods
Slide 35: Contents
Contents Jud r il IFRS financial inf i Adjusted . Definitions of all key terms and P&L measures referred to in this presentation. 2. iliation of reported i growth for the twelve months ended December 31, 2018 and for the twelve months ended December 31, 2017. 3 iliation of reported to Adjusted finan
Slide 36: Definitions of all key terms and P&L measures
1. Definitions of all key terms and P&L measures referred to in this presentation 36
Slide 37: Reconciliation of organic revenue growth
2. Reconciliation es ° aenon revenue growth Year on Year with December 31, 2017 Qi 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 YoY Growth YoY Growth YoY Growth YoY Growth YoY Growth [Reported Revenue Growth 1.5% 6.6% 15.6% 21.0% 11.0% Of which: - Organic Revenue Growth 2.9% 1.3% 1.9% 4.2% 2.6% - Acquisitio
Slide 38: Reconciliation of reported to Adjusted financial information, 2018
ion of reported to ° Adjusted financial information for the twelve months ended December 31, 2018 3. Reconciliati Adjusted Statement of Profit or Loss (uni 31, 20: ste ‘Twelve months ended December Cost of sales Gross Profit (g) Other operating expenses Exceptional items Operating Profit Finance inc
Slide 39: Reconciliation of EBITDA and Adjusted EBITDA, 2018
4. Reconciliation of reported hi __ financial information for the twelve months ended December 31, 2018 EBITDA and Adjusted EBITDA (unaudite Twelve months ended December 31, 2018 Profit for the period ‘Twelve month December ended 1018 Taxation Net Financing Costs Depreciation Amortization 7.0 329.4
Slide 40: Reconciliation of reported to Adjusted financial information, 2017
5. Reconciliation of reported to Adjusted financial information for the twelve months ended December 31, 2017 sane ‘Statement of Profit or Loss (unaudited) 1017 nths ended December 31, 2( Revenue 1,956.6 Cost of sales (1,387.2) - Gross Profit (0) Other operating expenses 56 @) Exceptional items 372)
Slide 41: Reconciliation of EBITDA and Adjusted EBITDA, 2017
6. Reconciliation of reported to Adjusted financial information for the twelve months ended December 31, 2017 Leuenaad Adjusted EerroA (unaudied) ‘ended Decer jelve months ended December 31, 2017 Profit for the period 136.5 Taxation 32.0 Net financing costs Depreciation Amortization EBITD. Exception
Slide 42: Reconciliation of reported to Adjusted financial information, 2016
7. Reconciliation of reported to Adjusted financial information for the twelve months ended December 31, 2016 Adjusted Statement of Profit or Loss (unaudited) Twelve months ended December 31, 2016 As reported for the twelve months ended December 31, 2016 adjusted for the twelve months ended December
Slide 43: Reconciliation of EBITDA and Adjusted EBITDA, 2016
8. Reconciliation of report we to Adjusted financial information for the twelve months ended December 31, 2016 EBITDA and Adjusted EBITDA (un ve mn careataeeaatti 16 a) (in €m) Exceptional items — none! to transactions Costs related to management incentive plan: Dovestgeion nd ‘mplemen station of sm
Slide 44: Reconciliation of key cash flow metrics
9. Reconciliation of key cash flow metrics for the twelve months ended December 31, 2018, the twelve months ended December 31, 2017 and twelve months ended December 31, 2016 elve months ended ‘welve months ende¢ De A yecembi Net Cash Flows From Operating Activities . 193.8 282.1 Add 7 ck: Tax 32.9 6
Slide 45: Reconciliation for the three months ended December 31, 2018
45 (in €m) (As reported for the three months ended December 31, 2018) 10. Reconciliation of reported to Adjusted financial information for the three months ended December 31, 2018