Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Barclays Global Consumer Staples Conference 2015
34 slides from Nomad Foods's conference presentation, Sep 8, 2015
Slide 1: Barclays Global Consumer Staples Conference
Barclays Global Consumer Staples Conference September 8, 2015 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: Today's Presenter
Today's Presenter Stéfan Descheemaeker, CEO 3
Slide 4: Agenda
Agenda Introduction to Nomad Foods Platform and Market Opportunity Findus Group Acquisition (Continental Europe) Value Creation Financial Highlights Conclusion 4
Slide 5: Introduction to Nomad Foods
Introduction to Nomad Foods 5
Slide 6: Executive Summary
Executive Summary Overview • Nomad Foods is a leading packaged foods company seeking to build a global portfolio of best-in-class food companies and brands within the frozen category and across the broader food sector Nomad Foods • Nomad Foods' approach makes it an attractive acquirer: Acquisition
Slide 7: Investment Highlights
Investment Highlights Platform to Lead Consolidation in the Fragmented Global Food Sector Leading Player in the Experienced Team with Large and Resilient a Strong Track Record Western European Frozen Food Market Attractive Financial Characteristics and Iconic Brands with Significant Cash Flow Strong
Slide 8: Experienced Leadership
Experienced Leadership Overview of the Founders Noam Gottesman, Co-Chairman Martin E. Franklin, Co-Chairman • Recognized leader in the financial services industry and global • Distinguished business leader with extensive experience as an originator, operator investor with extensive experience identi
Slide 9: Platform and Market Opportunity
Platform and Market Opportunity 9 9
Slide 10: Global Packaged Food Market Opportunity is Significant
Global Packaged Food Market Opportunity is Significant Nomad Foods is well-positioned to lead broader food consolidation and build a best-in-class global foods company Global Packaged Food Retail Sales ($bn) ($ in billions) • Opportunity to consolidate fragmented, frozen category US Packaged Food $3
Slide 11: Iglo Group Offers a Platform to Lead Consolidation
Iglo Group Offers a Platform to Lead Consolidation A leading multi-brand and multi-category frozen food company in Western Europe Leading branded frozen food player in Western Europe Iglo Group Structure today with sales of €1.5bn Strong brands in 3 focus markets – UK, Germany and Italy Operations i
Slide 12: Acquisition of Findus Group to Create Pan-European Platform
Acquisition of Findus Group to Create Pan-European Platform Transaction will expand geographic footprint and strengthen competitive offering in Europe Expanded Geographic Footprint Strengthened Market Leadership Position Strong positions (1) in savoury frozen food segment (2) Market share in Western
Slide 13: Findus Group Acquisition (Continental Europe)
Findus Group Acquisition (Continental Europe) 13
Slide 14: Findus Group's CE Business Fits Our Strategic Investment Criteria
Findus Group's CE Business Fits Our Strategic Investment Criteria Nomad Foods has entered into a binding option agreement to acquire the Findus Group's Continental Europe business; Nomad Foods expects the seller to exercise the option following completion of works council consultations Nomad Foods I
Slide 15: Transaction Rationale
Transaction Rationale • Iconic brands across key markets Brand Strength • Reunites Findus brand across the continent (1) • Compliments existing geographic footprint and creates Sweden Finland Spain Geographic Fit leading, pan-European frozen food business • Leading brands in key markets Norway Franc
Slide 16: Findus Group CE Financials
Findus Group CE Financials 2014A Financials Breakdown (%) Market Position in Key Markets (%) Sales by Country Denmark Belgium Market Share1 Finland 1% 1% 6% Spain 7% Norway 38% Sweden France 39% 22% Norway Sweden 28% 24% Sales by Channel Finland 21% Private La Cocinera Label 4% Industrial 5% 6% Fran
Slide 17: Pro-forma as Adjusted Run-Rate EPS for Nomad Foods
Pro-forma as Adjusted Run-Rate EPS for Nomad Foods Core business, together with Findus CE, expected to generate pro-forma annual run-rate cash flow of c. €200 million deleveraging business in excess of 0.5x per year (1) Pro-forma Pro-forma (Excluding (Including (in €mm) Nomad Foods Findus Synergies)
Slide 18: Value Creation
Value Creation Nomad Foods
Slide 19: Value Creation Combined with Best-in-Class Integration
Value Creation Combined with Best-in-Class Integration Critical to respond to ongoing top‐line pressures from discounters and private‐ label across our markets Long‐term vision to stabilize and grow top‐line based on an identified growth strategy Save to re‐invest: Cost cutting and disciplined cos
Slide 20: Long-Term Vision Supported by Identified Growth Strategy
Long-Term Vision Supported by Identified Growth Strategy Virtuous cycle now begins where we save to re-invest Disciplined Cost Management Gross / Net Sales Margin 5 Extract Synergies Net Sales and 1 Gross Margin Save to Re-Invest Revenue Management 4 Sales “Better Meals Excellence Together” and Visi
Slide 21: Focus on Margin Accretive Innovation and Renovation
Focus on Margin Accretive Innovation and Renovation Innovation approach and pipeline are key to the organic growth strategy Approach to innovation Recent Innovations Innovation Platform Key Products Launched • Renovating the core “Inspirations”(UK) • Identifying new meal occasions and “SteamFresh” (
Slide 22: Strong Distribution and Penetration Build of Wholegrain
Strong Distribution and Penetration Build of Wholegrain Portfolio Wholegrain Fish Fingers Wholegrain Fish Bakes Wholegrain Nuggets Wholegrain Filegro 22
Slide 23: Innovation Examples
Innovation Examples FISHBURGERS FISH FUSIONS FISHINSPIRATIONS RCE FUSIONS —sr ‘POULTRY INSPIRATIONS VEG FUSIONS ad ee any F Rice Fusions ae” ‘ GirdsEye py Fish Inspirations Penetration (%) oultry Inspirations 4 wks wks 12 wks 16 wks 20 wks 24 wks 26 wks 32 wks Weeks since launch BEST-SELLING NPD OF
Slide 24: M&A Creates Commercial Synergy Opportunities
M&A Creates Commercial Synergy Opportunities Acquisitions, such as Findus Group CE, create incremental, commercial synergy opportunities to share innovation and develop more robust product portfolio Extending Our Core Innovative Packaging New Formats and Occasions 24
Slide 25: Well-developed Digital Strategy to Drive Online Sales
Well-developed Digital Strategy to Drive Online Sales Strategy Online Marketing Catch Connect Close Online Retail On‐line Video activated 25
Slide 26: Online Sales Show Significant Growth and Over-Indexing
Online Sales Show Significant Growth and Over-Indexing Overtrades with Strong UK Online Value Sales Growth(1) Key Retail Partners Across Europe is #2 UK grocery brand by online sales after Overtrade of frozen Iglo Online Business vs. Retailer’s Physical Business …with online sales growth of ~16% in
Slide 27: Financial Highlights
Financial Highlights Nomad Foods
Slide 28: Diversified Business Mix
Diversified Business Mix Iglo Group’s existing business mix is well diversified across brands and product categories Sales Adj. EBITDA (1) Sales by Category Meals and other 20% Fish 34% 43% 29% 30% 38% 24% 25% Poultry 13% 2% 35% Other (Germany and Vegetables other (50/50 split)) 32% 24% 21% FY 2014A
Slide 29: Historical Performance
Historical Performance Revenue (€m) (1) 1,573 1,506 1,501 761 743 (3) (3) 2012A 2013A 2014A H1 2014A H1 2015A Gross Profit (€m) and Gross Profit Margin (%) (1) 544 504 530 100.0 265 257 33.5 35.3 34.6 34.7 34.5 0.0 (3) (3) 2012A 2013A 2014A H1 2014A H1 2015A Gross Profit (€m) Gross Profit margin (%)
Slide 30: Best-in-Class Cash Flow Generation
Best-in-Class Cash Flow Generation Attractive operating cash flow conversion due to positive working capital trends and low capital expenditures Operating Cash Flow Conversion (%) (1)(2) 87 97 90 101 103 2012A 2013A 2014A H1 2014A H1 2015A Working Capital (€m) and Change in Working Capital (€m) (1)(
Slide 31: Conclusion
Conclusion Nomad Foods
Slide 32: Investment Highlights
Investment Highlights Platform to Lead Consolidation in the Fragmented Global Food Sector Leading Player in the Experienced Team with Large and Resilient a Strong Track Record Western European Frozen Food Market Attractive Financial Characteristics and Iconic Brands with Significant Cash Flow Strong
Slide 33: Appendix
Appendix 33
Slide 34: Overview of Findus Group Transaction
Overview of Findus Group Transaction • On 13 August 2015, Nomad Foods entered into an option agreement to acquire Findus Group’s Overview Continental Europe business for £500 million • £400 million cash consideration to be funded through a combination of Nomad's existing cash in hand Consideration a
Nomad Foods — Barclays Global Consumer Staples Conference 2015 on 6ix