Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Investor Presentation (November 2017)
25 slides from Nomad Foods's investor presentation, November 2017
Slide 1: Investor Presentation November 2017
Investor Presentation November 2017
Slide 2: Disclaimer
Disclaimer 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 Presentatio
Slide 3: Company & Market Overview
Company a Company & Market Overview
Slide 4: Company Snapshot
Company Snapshot Key Facts Top Branded Frozen Player in 13 Countries ● Leading branded frozen food player in 1 #1 Market Position Western Europe with sales of €2 billion 2 #2 Market Position ● 14% market share within the resilient and 3 #3 Market Position growing €25 billion Western European savory
Slide 5: Geographic Overview
Geographic Overview UK Italy Germany Sweden France Brand Present Market Position 1 1 1 1 1 Relative Share1 1.7x 2.9x 1.1x 1.3x 1.4x 2016 Revenue €459m (23%) €349m (18%) €268m (14%) €218m (11%) €169m (9%) and % Mix Total² 13.2 Total² 23.0 Total² 11.1 Total² 11.2 Total² 22.9 Fish 19.1 Fish 22.3 Fish 2
Slide 6: Category Overview
Category Overview Nomad’s Relative # Countries Category Market Market with #1 2016 Categories Description Share Share Position Sales % of 2016 Sales Select Products ● Comprises of products such as fish fingers, 39% Fish coated fish 25.8% 5.6x 9 €760m and natural fish among others ● Includes ready to
Slide 7: A Portfolio of Iconic Brands with Strong Heritage
A Portfolio of Iconic Brands with Strong Heritage … Underpinned by Iconic Brands and Assets with Strong Brand Equity 2016 Spontaneous Brand Awareness %(1) ● Iconic brands with almost 100 years of history #1 #1 #1 #1 #2 ● #1 consumer choice ● Brand recognition drives consumer trust 86% and demand 74%
Slide 8: Geographically Diversified Manufacturing Footprint
Geographically Diversified Manufacturing Footprint ● 9 best-in-class / well-invested manufacturing facilities across Europe ● Strategically located in key markets with nimble supply chain able to serve local markets ● Sufficient capacity available to accommodate future growth in main categories Name
Slide 9: Value Creation Strategy
Value Creation Strategy Revenue Growth A Market share gains and organic growth in an attractive category Margin Expansion B Net revenue management and expense discipline Capital Allocation C Leveraging significant free cash flow into shareholder value creation
Slide 10: Value Creation Strategy: Revenue Growth
Value Creation Strategy Revenue Growth A Market share gains and organic growth in an attractive category
Slide 11: "Must Win Battles" Are Driving Organic Growth
“Must Win Battles” Are Driving Organic Growth 2015 2016 2017 10.2% 8.5% 5.5% 5.9% 3.5% 1.2% 1.1% -0.8% -2.7% -3.8% -3.3% -5.4% -6.1% -7.0% -8.0% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17E Organic Revenue Growth "Must Win Battles" Organic Revenue Growth 11
Slide 12: European Frozen Food Is Stable and Growing
European Frozen Food Is Stable and Growing Frozen Market Retail Value (€bn) 24.7 24.9 24.4 24.5 24.1 23.6 2011 2012 2013 2014 2015 2016 12 Source: Euromonitor
Slide 13: Market Leadership Across Most Business Lines
Market Leadership Across Most Business Lines Frozen Frozen Fish Vegetables Frozen Meals Frozen Poultry Total Nomad % Market Share in 25.8% 24.2% 14.3% 21.8% Respective Markets Market Position by Country (2015) Austria 1 1 1 1 1 Belgium 1 1 1 1 1 Finland 1 2 1 3 France 1 2 2 1 1 Germany 1 1 3 1 1 Ire
Slide 14: Packaging Renovation Illustration
Packaging Renovation Illustration Current Strategy Previous Strategy Local icons (“Captain”) with focus on food Single global masterbrand campaigns 14
Slide 15: Country in Focus: Italy
Country in Focus: Italy Category Sales Mix Market Share Packaging Italy Highlights Natural Fish 17% 38% ● Italy is Nomad Foods’ second largest country by revenues largest by profits and, in 2017, Peas 16% 69% was the second fastest growing country ● Organic revenue growth has been positive in Fish F
Slide 16: Country in Focus: Italy
Country in Focus: Italy 2017 Transformation Playbook • Reprioritized the core (“Must Win Battles”) Portfolio Management • Relaunch all key segments with improved packaging • Reallocate investment spend and commitment to the core Media & Communication • Effective tag-on strategy to drive copy halo ef
Slide 17: Country in Focus: Italy
Country in Focus: Italy Current Packaging Previous Packaging 17
Slide 18: Value Creation Strategy: Margin Expansion
Value Creation Strategy Margin Expansion B Net revenue management and expense discipline
Slide 19: Net Revenue Management – A New Way of Working
Net Revenue Management – A New Way of Working Reallocate Top-line Spend to the Core 1. Prioritise 2. Reallocate Distribution Promotional Opportunities Spend Build Capabilities to Deliver Profitable Plans 3. Optimise 4. Increase 5. Upgrade Price Pack Trade Terms Capabilities Architecture Conditionali
Slide 20: Value Creation Strategy: Capital Allocation
Value Creation Strategy Capital Allocation C Leveraging significant free cash flow into shareholder value creation
Slide 21: Potential Avenues for M&A Opportunity
Potential Avenues for M&A Opportunity European Frozen o Consolidation opportunity o Procurement, manufacturing, logistics & commercial synergies o Best practice and G&A synergies European Non-Frozen o Platform & tuck-in opportunity to expand into new categories o Procurement and manufacturing synerg
Slide 22: M&A Criteria and Considerations
M&A Criteria and Considerations Market Leading Brands with Protective Moats Niche Categories with Opportunities for Growth Cash Flow Generation Strong Management Scale and Skill Synergies Valuation Discipline 22
Slide 23: Third Quarter 2017 Financial Review
Company a Third Quarter 2017 Financial Review
Slide 24: 3Q17 Highlights
3Q17 Highlights Broad-Based Organic Revenue Growth ● Third consecutive quarter of organic revenue growth, +5.9% ● Growth led by Germany, +19.3%, France +11.0% and Italy +7.5% ● UK enters into growth, +2.5% Gross Margin Expansion and Increased Guidance ● Gross margins expand 120 basis points, driven
Slide 25: Nomad Foods
Nomad Foods Nomad Foods