Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Investor Presentation (April 2017)
39 slides from Nomad Foods's investor presentation, Apr 5, 2017
Slide 1: Investor Presentation April 2017
Investor Presentation April 2017 Exhibit 99.1
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: Our Strategic Vision
Our Strategic Vision 4 Our Goal Transform Nomad into a Leading Global Consumer Foods Company Operational Excellence Catalyze organic topline growth through “Must Win Battles” while managing operating expenses with a disciplined, ZBB-based philosophy Global Growth Across Food Pursue value creating ac
Slide 5: Company Snapshot
5 Company Snapshot Key Facts Leading branded frozen food player in Western Europe with sales of €1,928m (FY 2016A) Operations in 17 countries in Western Europe, commanding a 13.8% market share of the frozen food market (excluding ice cream) #1 branded frozen player in 10 countries including UK, Ital
Slide 6: Geographic Overview
UK Italy Germany Sweden France Brand Present Market Position Relative Share1 1.7x 2.9x 1.1x 1.3x 1.4x Revenue and % of Revenue €459m (24%) €349m (18%) €267m (14%) €218m (11%) €169m (9%) Market Share in Nomad’s Key Categories (%) Geographic Overview 1 1 1 1 1 6
Slide 7: Category Overview
Category Overview Categories Category Description Nomad’s Market Share1 Relative Market Share1, 2 # Countries with #1 Position 2016 Sales % of 2016 Sales Select Products Fish Comprises of products such as fish fingers, coated fish and natural fish among others 25.8% 5.6x 9 €760m Vegetables Includes
Slide 8: 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 Iconic brands with almost 100 years of history #1 consumer choice Brand recognition drives consumer trust and demand [61] years history [76] years history [53] years history [95] year
Slide 9: Manufacturing facilities across Europe
Valladolid Cap. Utilization Products 53 (6%) 23% Meals, Bakery, Sauces Lowestoft Cap. Utilization Products 155 (18%) 80% Fish, Poultry, Vegetables, Burgers Larvik Cap. Utilization Products 17 (2%) 40% Vegetables, Fish, Other (Soup, Pizza) 10 best-in-class / well-invested manufacturing facilities acr
Slide 10: European Frozen Food is Large and Resilient
Frozen Market Retail Value ’11 – ’16 CAGR: 1.1% (€bn) Font: 11 56 98 0 32 96 0 32 96 217 217 217 89 89 89 0 176 240 Font: 89 89 89 European Frozen Food is Large and Resilient Source: Euromonitor 10
Slide 11: Market Leadership Across Most Business Lines
Frozen Fish Frozen Vegetables Frozen Meals Frozen Poultry Total Nomad % Market Share in Respective Markets 25.8% 24.2% 14.3% 21.8% 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 Ireland 2 1 2 1 2 Italy 1 1 1 5 1 Netherlands 1
Slide 12: Organic Growth Strategy
Company a Organic Growth Strategy
Slide 13: Key Actions to Stabilize and Grow
Key Actions to Stabilize and Grow A C Redirect resources behind Must Win Battles B D Leverage our local heroes Revenue management: untapped and complementary Cost efficiencies (organic and synergies) 13
Slide 14: Redirect resources behind Must Win Battles
c A Redirect resources behind Must Win Battles 14
Slide 15: What are "Must Win Battles"?
What are “Must Win Battles”? A strategic cross-portfolio evaluation resulting in redirected resources to our most scalable sub-categories Key “Must Win Battles” criteria include market share, gross margin, growth potential and ROI A renewed focus on core products and local brand icons Examples inclu
Slide 16: Advertising Spending Redirected to Core
Advertising Spending Redirected to Core Core v. NPD GRPs Note: 2012 – 2015 shows split between Core and NPD products, whilst 2016 shows split between MWBs and Other 16
Slide 17: "Must Win Battles" Success Stories
“Must Win Battles” Success Stories Fish Fingers Fish Fingers was one of the first “Must Win Battles” launched across a number of markets 360 degree activation: return of highly effective “Captain” advertising, product innovation (“Gluten Free”, “Crispier Crumb”), upgraded packaging and revised promo
Slide 18: Packaging Renovation Illustration
Packaging Renovation Illustration Previous Strategy Single global masterbrand campaigns New Strategy Local icons (“Captain”) with focus on food 18
Slide 19: Leverage our local heroes
c B Leverage our local heroes 19
Slide 20: Fish Fingers – The Captain is Back
Fish Fingers – The Captain is Back Restore iconic local brand assets Invest in 3-4 priority platforms at scale Pursue 360˚ campaigns from above the line to POS TV campaign (FiFi Original & Battered, WG Tag) Digital activation (storrytelling at scale) PR (driving reach) Promotions (focus on Merlin &
Slide 21: Fish Fingers - Strategy in Action
Fish Fingers - Strategy in Action Fish Fingers Communications Effectiveness Index Source: IPSOS Monthly Equity tracking 52 weeks 12 weeks 4 weeks DE -0.5 1.0 0.6 IT -3.1 0.6 -0.3 UK 0.6 2.4 0.8 Household Penetration pp change vs LY Source: Kantar GFK to 31/12/16 52 weeks 12 weeks 4 weeks DE 6.4% 26.
Slide 22: Revenue management: untapped and complementary
c C Revenue management: untapped and complementary 22
Slide 23: Net Revenue Management – A New Way of Working
Net Revenue Management – A New Way of Working Reallocate Top-line Spend to Must Win Battles Build Capabilities to Deliver Profitable Plans 1. Prioritise Distribution Opportunities 2. Reallocate Promotional Spend 3. Optimise Price Pack Architecture 4. Increase Trade Terms Conditionality 5. Upgrade Ca
Slide 24: Cost efficiencies (organic and synergies)
c D Cost efficiencies (organic and synergies) 24
Slide 25: Findus Synergy and Integration
Findus Synergy and Integration Commercial / “best practice” synergies Supply chain and manufacturing synergies Indirect cost synergies High level of confidence to deliver potential €43 million to €48 million by 2018; realized €12 million run-rate synergies as of 2016 Potential incremental manufactur
Slide 26: Consolidation Opportunity
Company a Consolidation Opportunity
Slide 27: Three "Buckets" of M&A Opportunity
Three “Buckets” of M&A Opportunity 1 2 3 European Frozen: Consolidation opportunity Procurement, manufacturing, logistics & sales force synergies Best practice and G&A synergies European Non-Frozen: Platform & tuck-in opportunity to expand into new categories Procurement and manufacturing synergies
Slide 28: 2016 Financial Review
Company a 2016 Financial Review
Slide 29: 2016 Highlights
Stabilize Topline Trends 4Q16 like-for-like sales decline of 2.7% 5th consecutive quarter of sequential topline improvement “Must Win Battles” strategy is working with related sales inflecting positive 1.2% in 4Q16 Momentum into 2017 with 1Q like-for-like sales growth expected to move into positive
Slide 30: Like-for-Like Net Sales Growth
Food of Life Pan-European Ad Campaign Launch New Packaging Launch NPD Strategy Launches Cost Review Like-for-Like Net Sales Growth Quarterly Like-for-Like Net Sales Pre-Nomad Strategy New Strategic Direction Annual Negotiations Promo Changes Renovation Launches Refreshed Advertising Strategic Review
Slide 31: 2016 Revenue Bridge
2016 Revenue Bridge 1) For comparative purposes, Nomad Foods is also presenting Pro Forma As Adjusted financial information for the twelve months ended December 31, 2015 for the combined results of Nomad Foods, the Iglo Group and the Findus Group. Pro Forma As Adjusted financial information for the
Slide 32: 2016 Gross Profit Bridge
2016 Gross Profit Bridge 29.5% 29.6% Gross Margin: +0.1% 1) Like-for-Like Gross Profit: (€18.7m) 2) 2) 1) For comparative purposes, Nomad Foods is also presenting Pro Forma As Adjusted financial information for the twelve months ended December 31, 2015 for the combined results of Nomad Foods, the Ig
Slide 33: 2016 Operating Performance
2016 Operating Performance 1) 1) For comparative purposes, Nomad Foods is also presenting Pro Forma As Adjusted financial information for the twelve months ended December 31, 2015 for the combined results of Nomad Foods, the Iglo Group and the Findus Group. Pro Forma As Adjusted financial informatio
Slide 34: Key Cash Flow Metrics
Key Cash Flow Metrics 1) All 2015 figures are Pro Forma/Pro Forma As Adjusted. 2) 2015 pro forma information has been calculated based on the charge to the Statement of Profit or Loss. The methodology differs to that used in Q2 2016. The year to date cash flow of €90.1 million shown in Q2 2016 would
Slide 35: 2017 Guidance
Nomad Foods 2017 Guidance
Slide 36: 2017 Guidance
2017 Guidance Net Sales 1Q and 2017 Like-for-like sales growth to be positive 1Q reported sales growth negatively impacted 400 bps from foreign currency translation and leap year comparison Gross Profit and EBITDA 2017 gross profit ahead of 2016 2017 underlying EBITDA growth to be offset by the rein
Slide 37: 2017 EBITDA Drivers
2017 EBITDA Drivers 2017 EBITDA Drivers Revenues. Positive growth in like-for-like revenue offset by 180 bps related to leap year and FX Gross Profit. Gross profit dollars and gross margins to expand versus 2016 Indirect expenses. To decline versus 2016, excluding bonus reinstatement Advertising & p
Slide 38: 2017 EBITDA Bridge
2017 EBITDA Bridge Nomad Foods 2016 Adjusted Underlying Reinstated cop currency 2017 Adjusted EBITDA, EBITDA Growth Bonuses Yer Traslation EBITDA,
Slide 39: Nomad Foods
Nomad Foods Nomad Foods