Nomad Foods Limited · NYSE:NOMD
Nomad Foods — dbAccess Global Consumer Conference 2020
25 slides from Nomad Foods's conference presentation, Jun 10, 2020
Slide 1: dbAccess Global Consumer Conference 2020
dbAccess Global Consumer Conference 2020 June 10, 2020
Slide 2: Disclosures
Disclosures This presentation has been prepared and issued by Nomad Foods Limited (the "Company"). This Presentation has been provided solely for information and background. The information in this Presentation is provided as at the date of the Presentation (unless stated otherwise). This Presentati
Slide 3: Today's Agenda
Today’s Agenda 1 Company Overview 2 COVID-19 and Beyond 3 Green Cuisine
Slide 4: Nomad Foods is Europe's Leading Frozen Food Company
Nomad Foods is Europe’s Leading Frozen Food Company Revenue By Category €2b+ net revenues 3 consecutive years of organic revenue growth other pizza 6% 8% #1 market share poultry 8% fish 100% 40% within Western Europe frozen food meals of revenues in 9% frozen food 13 4,800 primary countries potatoes
Slide 5: Nomad is the Undisputed Leader in European Frozen Food
Nomad is the Undisputed Leader in European Frozen Food Western Europe Savory Frozen Food €27B Total Retail Sales Value Source: Euromonitor, 2019; branded only 5
Slide 6: Sustainability Is a Fundamental Pillar of our Business
Sustainability Is a Fundamental Pillar of our Business 6
Slide 7: Creating Focus Through Strategic Portfolio Choices
Creating Focus Through Strategic Portfolio Choices CORE SECONDARY BRANDED PRODUCTS 70% of revenues 10% of revenues strategic, fully funded and accretive to growth & margins managed for margin & cash flow OTHER BRANDED PRODUCTS 10% of revenues managed for cash flow 7
Slide 8: Approaching a 14th Consecutive Quarters of Organic Revenue Growth
Approaching a 14th Consecutive Quarters of Organic Revenue Growth NOMAD FOODS Quarterly Organic Revenue Growth LDD% 7.7% 5.9% 5.6% 4.2% 3.5% 3.5% 2.9% 2.5% 1.9% 1.7% 1.1% 1.3% 0.9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (est)* 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020
Slide 9: Business Insights Throughout the COVID-19 Crisis
Business Insights Throughout the COVID-19 Crisis Unprecedented Demand An Influx of Online at a Stabilizing for Frozen Food New Consumers Tipping Point Commodity Costs Frozen has been one of the Growth is being driven by new Our e-commerce sales have Commodity prices have strongest categories with ou
Slide 10: Frozen Consumption Has Grown Across All Occasions Throughout the COVID Crisis
Frozen Consumption Has Grown Across All Occasions Throughout the COVID Crisis Average Number of Frozen Savory Meals per Month by Occasion, UK Market 600 0.8 0.7 500 68% 0.6 400 0.5 300 0.4 31% 30% 0.3 200 28% 0.2 100 0.1 0 0 Breakfast Lunch Teatime Evening Meal Pre-COVID Post-COVID % Change Source:
Slide 11: Well Aligned with the Acceleration of Online Grocery
Well Aligned with the Acceleration of Online Grocery Nomad Foods Online Sales Growth 2020 Year-on-Year ✓ In 2019, e-commerce represented 5% of total Nomad sales and grew high-single digits % 80% ✓ Since March 2020, e-commerce growth has accelerated significantly and now represents 7% of total Nomad
Slide 12: Key Actions to Convert Current Momentum into Sustained Long-Term Growth
Key Actions We are Taking to Convert Current Momentum into Sustained Long-Term Growth EDUCATE CONSUMERS ON THE BENEFITS OF FROZEN FOOD ▪ Most consumers recognize the convenience of frozen food… ▪ …however, they still underutilize their freezer, which is opened an average of 8x per week versus the pa
Slide 13: Frozen Products Powering Consumers' Lives with Plants
Introduced in 2019, Green Cuisine is a New Range of Frozen Products Powering Consumers’ Lives with Plants • Serving consumers across all meat-free need states • Leveraging European leadership in frozen • New and improved recipe which is winning versus the competition • Strong consumer-led positionin
Slide 14: Green Cuisine Adds a New and Exciting Dimension to a Portfolio
Green Cuisine Adds a New and Exciting Dimension to a Portfolio that is Already Flexitarian at Heart Fish Vegetables Meat Substitutes
Slide 15: Green Cuisine Has Expanded Across Various Need States since Launching in the UK
Green Cuisine Has Expanded Across Various Need States since Launching in the UK in 2019 15
Slide 16: UK Market Update: Green Cuisine is Now the #3 Brand in Frozen Meat-Free
UK Market Update: Green Cuisine is Now the #3 Brand in Frozen Meat-Free Green Cuisine Market Share UK Frozen Meat Free UK Frozen Meat Free Market Share 5% Other Brands 17% Brand A launch 5% 37% €245m Retail Sales private label Value 19% Brand B 24% Apr-19 Apr-20 Feb-19 Feb-20 Oct-18 Oct-19 Nov-18 De
Slide 17: Green Cuisine is a Pan-European Sub Brand Tailored to Local Tastes
Green Cuisine is a Pan-European Sub Brand Tailored to Conform with Local Market Tastes and Preferences FRANCE GERMANY 17
Slide 18: Green Cuisine Will Be in 10 European Markets by July
Green Cuisine Will Be in 10 European Markets by July 2019 UK Ireland Germany France Netherlands Italy H1 2020 Spain Belgium Austria Portugal Countries in green denote markets where Green Cuisine is currently available to consumers. 18
Slide 19: Green Cuisine Will be a Significant Driver of Growth in the Coming Years
Green Cuisine Will be a Significant Driver of Growth In the Coming Years €100+ REVENUE MILLION BY 2022 19
Slide 20: Acquisitions Are the Primary Intended Use of Cash
Acquisitions Are the Primary Intended Use of Cash CONSOLIDATE EUROPEAN FROZEN PURSUE UNIQUE OPPORTUNITIES Across geographies, categories & channels Beyond European Frozen QUALITY Food Assets ACCRETIVE STRONG to long-term Financial shareholder Returns value LONG-TERM GOAL Generate top tier TSR by bui
Slide 21: A Unique, Compelling and Sustainable Growth Story within Packaged Foods
A Unique, Compelling and Sustainable Growth Story within Packaged Foods 1 Consistent organic growth trajectory prior to COVID-19 2 Attracting new consumers and trial throughout the pandemic 3 Well positioned to capitalize on the shift to online 4 Breakthrough innovation in plant protein with strong
Slide 22: Questions?
QUESTIONS?
Slide 23: Appendix
Appendix
Slide 24: Reconciliation of reported to organic revenue growth
Reconciliation of reported to organic revenue growth Q2 To Date Q1 2020 2020 (b) YoY Growth YoY Growth Reported Revenue Growth 10.5% 13.0% Of which: - Organic Revenue Growth 7.7% 14.1% - Acquisitions 0.0% 0.0% - Trading Day Impact 3.2% 0.0% - Translational FX (a) (0.4%) (1.1%) Total 10.5% 13.0% Q1 2
Slide 25: Reconciliation of reported to organic revenue growth
Reconciliation of reported to organic revenue growth Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY2018 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% - Acquisitions 0.0% 6.4% 14.7% 17.3% 9.4%
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