# Dear Fellow Shareholders

_Source: `DeepSeekOCR_Ardian_pruned_1k/consumer-defensive-packaged-foods/NYSE_NOMD_2022/NYSE_NOMD_2022.mmd` · pages 3-9_

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Dear Fellow Shareholders,

We are pleased to report another record year at Nomad Foods. Once again, Nomad proved its resilience and strength during the extraordinary macroeconomic challenges of 2022. Following our successful execution throughout the COVID-19 pandemic, last year we shifted to battling supply chain constraints, accelerating inflation, and other macro uncertainties arising from the Russian invasion of Ukraine. Against that backdrop, we grew our sales, EBITDA, and EPS while retaining many of the new frozen food consumers gained during the pandemic crisis.

Our business model performed extremely well through this ongoing global disruption, and we could not be more proud of what the Nomad team accomplished throughout the year. As a result of the team's successful efforts, we overcame multiple macro supply chain disruptions and rising inflation. Additionally, we expanded and de-risked our supply chain for the long-term, successfully integrated our latest acquisition, and further strengthened our brand portfolio and offering in a new and attractive category for us, ice cream.
Against this difficult backdrop, we successfully delivered our sixth consecutive year of organic revenue growth while delivering a five-year EPS CAGR of +11%. As the year came to an end, conscious of a rising interest rate environment, we further strengthened and de-risked our capital structure with a major refinancing. We extended our earliest maturities to halfway through 2028, creating a fortress balance sheet.

We continue to fuel our growth trajectory to offset inflationary costs and increased interest expense. Importantly, our strong free cash flow generation will continue to serve us well, as we naturally de-lever and pursue other accretive capital allocation opportunities. We expect to generate at least $1.5 billion in cash before our first maturity, further enabling our ability to take value-enhancing capital allocation steps as we progress through the next five years.

As we look forward to 2023, we will continue to respond to consumer needs and highlight the practical advantages and sustainability benefits of high-quality frozen food across all of our markets. Our new product innovation initiative honours our

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legacy of providing healthy, tasty, and affordable food, while we continue to expand our reach into plant-based alternatives and other consumer and sustainability-driven food trends. We are also executing new Revenue Growth Management strategies to maximise the value of our portfolio. Finally, we are stepping up investment in our people and raising A&P support for our most important products during a period of high stress for consumers, setting us up for long-term growth.

Our mission to "Serve the World with Better Food" is coming to fruition as we made significant progress last year towards our 2025 ESG objectives. For example, now 98% of our fish supply comes from sustainable fishing - including our expanded farm supply - and 90% of our packaging is recyclable. We remain committed to creating value for all of our stakeholders and achieving this with sustainable operations and best practices throughout the organization.

At Nomad, we believe our most important assets go home every night. We are grateful for their focus and perseverance as we confidently face the opportunities and challenges ahead of us. We thank you for your support and look forward to reporting our progress throughout 2023.

Yours faithfully,

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Sir Martin Ellis Franklin
Co-Chairman

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Noam Gottesman
Co-Chairman

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## Dear Fellow Shareholders,

2 022 was one of the most challenging years in Nomad Foods history, and I am proud to report that we achieved our sixth consecutive year of record sales and profits. Our success was thanks to the resilience of our world-class teams who worked diligently to deliver excellent results.

Like many businesses around the world, we were confronted with a new set of operational challenges, brought on by the end of the pandemic lockdowns and the start of the Ukraine war. These challenges included higher raw material costs, threats to our fish supply, and rising interest rates. In a difficult environment, we took great care to provide our consumers with great-tasting, healthy, and affordable products from across our trusted brand portfolio, always guided by our purpose of Serving the World with Better Food.

We also took the necessary steps to protect and grow our business for the long-term. We raised prices to offset much of our cost inflation, diversified our fish sources, and refinanced our debt, giving us visibility on interest charges and extending our maturities. We did this all while integrating our teams from the Adriatic region following the acquisition of Fortenova Group's frozen food business just over a year ago.

We also delivered another year of strong financial results, growing organic revenues by +2% and overall revenues by +13%, boosted by the full-year inclusion of Fortenova. Our Adjusted EPS and Adjusted EBITDA grew by +8%, and we achieved Adjusted Free Cash Flow conversion of 65%. These results validated our decision to build raw material inventories, mitigating against possible supply shortages. That decision allowed us to honour our commitment to deliver products to our customers and consumers without interruption throughout the year.

We see new challenges ahead in 2023 and are not sitting still. Demand for frozen food soared during the COVID-19 lockdowns as consumers pantry-loaded and ate more meals at home. Although the worst of the pandemic is now behind us, a new cost-of-living crisis has spread across Europe, and we are once again adapting our model to meet changing market dynamics brought on by higher product prices.

While consumers are becoming more conscious of their buying decisions, the demand for high-quality, nutritious, affordable, and sustainable food continues to grow, and this is a key competitive advantage for Nomad. Our unique portfolio, centred around fish, vegetables, and plant protein, positions us well against long-term trends.

Frozen food remains an attractive growth proposition in any economic environment, and we expect the category will perform well in 2023. To appeal to a broader set of consumers, we are strengthening our affordability propositions while reinvesting savings from our supply chain efficiency programmes into advertising & promotion to support our brands and expand their value. Finally, we will be maximising the value of our portfolio through robust Revenue Growth Management strategies, placing the right product in the right place at the right price.

We entered 2023 on the right foot and our ability to adapt and evolve as we face each new hurdle has given me even greater confidence in the Nomad Foods financial playbook: we generate consistent revenue growth and cash flow and deploy excess capital in an accretive manner.

We could not do any of this without the support and dedication of our nearly 8,000 employees. Our teams are continually improving and acting always with our purpose and the needs of our key stakeholders in mind. We remain well positioned for the future and I am excited that the best is yet to come. As always, we look forward to keeping you updated on our progress.

Respectfully yours,

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Stéfan Descheemaeker
CEO

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