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Dave MarbergerCHIEF FINANCIAL OFFICER
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DAVE MARBERGERCHIEF FINANCIAL OFFICER
With Conagra since 2016
Previous Experience
Prestige Brands: 1 year
Godiva Chocolatier: 7 years
Tasty Baking Company: 5 years
Campbell’s: 10 years
PricewaterhouseCoopers: 6 years
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Key Messages
We have made significant progress reshaping Legacy Conagra
over the last four years
The acquisition of Pinnacle is the next step forward in our value
creation playbook
Our long-term targets and capital allocation policy create a
compelling investment opportunity
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What I Will Cover
Our Journey
Continuing the Transformation With Pinnacle
The New Conagra Brands
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What I Will Cover
Our Journey
Continuing the Transformation With Pinnacle
The New Conagra Brands
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Four Years Ago ConAgra Foods Was…
A conglomerateAllocating resources to both branded businesses & private label
Reporting weak marginsLagging peers across key metrics
Struggling to grow profitablyPushing volume at the expense of profitability
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As the Newly Minted Conagra Brands, We Committed to
Transform the Business
Investor Day 2016 Commitments Through FY201,2
Organic Net Sales4
(3 YR CAGR)+1% to +2%
Adjusted Operating Margin3
(reflecting pension accounting changes)~15.5%
Adjusted EPS Growth (3 YR CAGR)
+10%
Working Capital Savings(3 YR CAGR ending FY19)
$400MM
Conagra Is On Track to Deliver Its Commitments
Note: Assumes no additional acquisitions or divestitures.
1. The inability to predict the amount and timing of future items makes a detailed reconciliation of these forward-looking financial measures impracticable
2. “Adjusted” financial measures and organic net sales (excl. Trenton) are non-GAAP financial measures
3. Adjusted operating margin excludes equity method investment earnings and has been restated for pension accounting
4. Organic net sales growth (excl. Trenton) excludes the impact of foreign exchange, the Trenton facility sale, and divested businesses, as well as acquisitions (until the anniversary date of the acquisitions)
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Heavy Lifting Led to a Higher-Quality Business
Higher-quality net sales baseModernizing brands to meet consumer preferences
Increased marginsEffectively pulling our six margin levers
Better growth prospectsInvesting meaningfully behind innovation
• Value Over Volume
• $200MM SG&A reduction program
• $100MM trade efficiency program
Operational
• New Management
• New Vision, Mission, Values
• New Headquarters
Cultural
• Lamb Weston
• Spicetec
• JM Swank
• Private Brands
• Trenton
• Del Monte Canada
• Wesson Oil
Divestitures & Spin
• Frontera
• Thanasi
• Angie’s
• Sandwich Bros.
Acquisitions
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Our Actions Show in the Numbers
Organic Net Sales
Growth3
Adj. Operating
Margin2
(5.4)%
+0.1%~ +1%
FY17 FY18 FY19(Guidance)
Adj. Diluted EPS
from Cont. Ops.
10.8%11.9%
14.9% 15.0%
FY15 FY16 FY17 FY18
$1.22 $1.30
$1.74
$2.11
FY15 FY16 FY17 FY18
Note: “Adjusted” financial measures and organic net sales (excl. Trenton) are non-GAAP financial measures.
1. The inability to predict the amount and timing of future items makes a detailed reconciliation of these forward-looking financial measures impracticable. Guidance assumes no additional
acquisitions or divestitures.
2. Adjusted operating margin excludes equity method investment earnings and has been restated for pension accounting
3. Organic net sales growth (excl. Trenton) excludes the impact of foreign exchange, the Trenton facility sale, and divested businesses, as well as acquisitions (until the anniversary date of the acquisitions)
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Cash Deployment over the Last Four Years
Strategic
AcquisitionsCapEx
Share
RepurchasesDividends
Cumulative Business Investment
$1.7 billion
Cumulative Shareholder Return
$3.6 billion
Note: Time period shown inclusive of FY15 through FY18
$1.0 billion $700 million $1.6 billion $2.0 billion
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What I Will Cover
Our Journey
Continuing the Transformation With Pinnacle
The New Conagra Brands
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Pinnacle Is the next Step in Our Transformation
Strategic Rationale
Leading brands
Complementary businesses
Increased scale
Enhanced frozen position
Robust innovation platform
Financial Rationale
Attractive top-line prospects
Significant synergies
IRR > WACC
EPS accretion
Strong cash flow generation
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Key Pinnacle Integration Milestones on Track
Employees transition to
Chicago & Omaha by
FY20 Q1
Corporate SAP
conversion FY20 Q1
Plant SAP conversions
over the next two yearsClosed acquisition
FY19 Q2
Re-confirmed strategic
priorities post-close
Majority of key milestones will be complete less than one year post-close
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Cost Synergies Expected to Exceed Initial Targets
Original Updated
SG&A +
A&P
COGS
Trade
Efficiency
9.2%
8.0%
Conagra + Pinnacle Peer Median
$285MM Updated Estimate Favorable $70MM vs. Previously Communicated
Strong Synergies Compared
to Past CPG Deals1
(Synergies as % of Target’s Net Sales)
$215MM
$285MM Expected Synergy
Timing
• ~55% achieved by
end of FY20
• ~95% achieved by
end of FY21
Synergy Update
• Trade
• Procurement
• Systems
• Contracts
• Headcount
• Real Estate
1. Source: Company filings, press releases, news reports, investor presentations, wall street research
$99MM
$116MM
$119MM
$146MM
$20MM
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Cash Costs to Achieve Favorable to Original Expectations
Original Updated
OpEx
CapEx
$320MM Updated Estimate Favorable $35MM vs. Previously Communicated
• Closures
• Systems
• Repatriation
CapEx
• System integration
• Vendor transition
• Headcount
OpEx
• ~65% by end of FY20
• ~95% by end of FY21
Cash Costs Expected
$355MM
$320MM
$142MM
$213MM
$85MM
$235MM
• Eliminated lower-ROI network consolidation investments
• Additional OpEx drives additional synergies and supports
systems conversion
Costs to Achieve Update
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Pinnacle Turnaround Cadence
Synergy capture
accelerates
FY20 Q2
Introduction of
innovation
FY20 H2Consumption &
distribution
declines moderate
FY20 H2
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What I Will Cover
Our Journey
Continuing the Transformation With Pinnacle
The New Conagra Brands
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FY18 Pro Forma Net Sales
Grocery & Snacks
30%
Refrigerated & Frozen
25%
Pinnacle28%
Foodservice9%
International8%
Key Brands
~$11.1B
Net Sales
Note: References to pro forma items include historical financial results for Pinnacle Foods prior to completion of the acquisition of Pinnacle Foods by the Company. These items have been
adjusted to align with the Company’s fiscal calendar and accounting policies to the extent that is practicable. Comparison to pro forma results allows the Company to discuss and evaluate
performance of the Pinnacle segment when a comparable period is not available due to the recency of the acquisition.
Source: Net Sales figures provided in Registration Statement on Form S-4 as filed with the SEC on September 13, 2018
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Reiterating FY19 Guidance1,2
Key Financial MetricsLatest FY19
Guidance
Organic Net Sales Growth4
(excl. Trenton impact)Approx. +1%
Adj. Gross MarginBelow Range
29.3% to 29.6%
Adj. Op Margin3 Above Range
14.9% to 15.2%
Adj. Effective Tax Rate 24% to 25%
Adj. Net Interest ExpenseBelow Range
$390MM to $395MM
Avg. Diluted Shares ~446MM
Adj. Diluted EPS from Cont. Ops. $2.03 to $2.08
FY19 SynergiesAbove
$20MM
FY19 Transaction-Related Amortization $17MM
Total Conagra
Key Financial MetricsLatest FY19
Guidance
Reported Net Sales $1.71B to $1.73B
Adj. Op Margin3 Near High-End
14.6% to 14.9%
Pinnacle(incl. Pinnacle-related corporate expense)
Note: Assumes no additional acquisitions or divestitures.
1. The inability to predict the amount and timing of future items makes a detailed reconciliation of these forward-looking financial measures impracticable
2. “Adjusted” financial measures and organic net sales (excl. Trenton) are non-GAAP financial measures
3. Adjusted operating margin excludes equity method investment earnings
4. Organic net sales growth (excl. Trenton) excludes the impact of foreign exchange, the Trenton facility sale, and divested businesses, as well as acquisitions (until the anniversary date of the acquisitions)
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Preliminary FY20 Outlook1,2
Note: Assumes no additional acquisitions or divestitures.
1. The inability to predict the amount and timing of future items makes a detailed reconciliation of these forward-looking financial measures impracticable
2. “Adjusted” financial measures and organic net sales (excl. Trenton) are non-GAAP financial measures
3. Organic net sales growth (excl. Trenton) excludes the impact of foreign exchange, the Trenton facility sale, and divested businesses, as well as acquisitions (until the anniversary date of the acquisitions)
Metric Preliminary FY20 Outlook
Organic Net Sales Growth3 Approx. +1%
Adj. Diluted EPS from Cont. Ops. $2.10 to $2.20
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Financial Progress Accelerates Through FY221,2
Metric Target
Organic Net Sales Growth4
(3 YR CAGR ending FY22)+1% to +2%
FY22 Adj. Operating Margin3 18% to 19%
FY22 Adj. Diluted EPS from Cont. Ops. $2.70 to $2.80
Free Cash Flow Conversion(% of Adj. Net Income; 3 YR avg. ending FY22)
95%+
Leverage Ratio(Net Debt to LTM Adj. EBITDA)
3.6x to 3.5x in FY21
Note: Assumes no additional acquisitions or divestitures.
1. The inability to predict the amount and timing of future items makes a detailed reconciliation of these forward-looking financial measures impracticable
2. “Adjusted” financial measures, organic net sales (excl. Trenton) and free cash flow are non-GAAP financial measures
3. Adjusted operating margin excludes equity method investment earnings
4. Organic net sales growth (excl. Trenton) excludes the impact of foreign exchange, the Trenton facility sale, and divested businesses, as well as acquisitions (until the anniversary date of the acquisitions)
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Key Factors Driving Sales Growth1,2
Frozen growth
above category
Snacks growth
in-line or
above category
Maintain share
in lower growth
categories
Condiments and
enhancers
becoming fully
competitive
Trade efficiency
synergies
+1% to +2% Organic Net Sales3 CAGR Through FY22(3 YR CAGR ending FY22)
1. The inability to predict the amount and timing of future items makes a detailed reconciliation of these forward-looking financial measures impracticable
2. “Adjusted” financial measures and organic net sales (excl. Trenton) are non-GAAP financial measures
3. Organic net sales growth (excl. Trenton) excludes the impact of foreign exchange, the Trenton facility sale, and divested businesses, as well as acquisitions (until the anniversary date of the acquisitions)
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Margin Expansion Attributable to Multiple Factors
Sales
Gross Margin
COGS
SG&A / A&P
Innovation
Realized
Productivity
Pricing/TradeCustomer
Investments
Channel & Brand
MixSynergies
Lean SG&A Brand Investments Synergies
Inflation
18% - 19% Adj. Operating Margin1,2,3
(Full-year FY22)
Product & Packaging
Investments
Sales & COGS Mix
Synergies
Note: Assumes no additional acquisitions or divestitures.
1. The inability to predict the amount and timing of future items makes a detailed reconciliation of these forward-looking financial measures impracticable
2. “Adjusted” financial measures and organic net sales (excl. Trenton) are non-GAAP financial measures
3. Adjusted operating margin excludes equity method investment earnings
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FY19 Adj. EPSGuidance
FY22 Adj. EPSTarget
Key Drivers of EPS Growth
Organic Net
Sales Growth3
Synergies
Margin
Expansion
Wesson Divestiture,
Interest Expense &
Share Count
Tax
Rate
$2.03 to $2.08
$2.70 to $2.80
JV
Income
Note: Assumes no additional acquisitions or divestitures.
1. The inability to predict the amount and timing of future items makes a detailed reconciliation of these forward-looking financial measures impracticable
2. “Adjusted” financial measures and organic net sales (excl. Trenton) are non-GAAP financial measures
3. Organic net sales growth (excl. Trenton) excludes the impact of foreign exchange, the Trenton facility sale, and divested businesses, as well as acquisitions (until the anniversary date of the acquisitions)
1,2 1,2
Full Year of
Pinnacle
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$668 ~$700
~$1,000
>$1,200 >$1,300
FY18 FY19F FY20F FY21F FY22F
Free Cash Flow to Increase Rapidly
Annual Free Cash Flow2,4
(Dollars in Millions)Key Drivers
• Adjusted earnings growth
• OpEx to achieve synergies: $235MM
• CapEx: 3% to 4% of net sales
• Incl. $85MM of CapEx to achieve synergies
• $300MM of working capital improvements
95%+ FCF2,4 Conversion(% of Adj. Net Income; 3 YR avg. ending FY22)
Note: Assumes no additional acquisitions or divestitures.
1. The inability to predict the amount and timing of future items makes a detailed reconciliation of these forward-looking financial measures impracticable
2. “Adjusted” financial measures and Free Cash Flow (FCF) are non-GAAP financial measures.
3. See the end of this presentation for a reconciliation of this measure to the most directly comparable GAAP measure.
4. Free cash flow is calculated from net cash flow from operating activities from continuing operations less additions to property, plant and equipment. Cash flow contribution from discontinued operations would be incremental.
Strong Free Cash Flow Supports Dividend and De-leveraging
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Go Forward Capital Allocation Policy
Priority• Maintain current annualized
dividend (~$400MM / year)
• Modest increases subject to
Board of Directors approval
Dividend
• De-lever to 3.6x to 3.5x
by FY21
• Solid investment grade
credit rating
Debt
• Acquisitions only if ahead of
de-leveraging targets
• Divestitures are a potential
de-leveraging accelerator
M&A
• Only if ahead of
de-leveraging targets
Share Repurchase
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Disciplined Approach to Acquisitions…
Modernizing
Acquisitions
• Tend to be smaller
• Consistent with emerging trends
• Provide platform for expansion
Synergistic
Acquisitions
• Tend to be larger
• Can enhance network and capabilities
• Can offer material economic benefit
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…And Divestitures
• Limited coherence with portfolio
objectives
• Disadvantaged category fundamentals
• Low priority for innovation or investment
• Divestiture logic immediately evident
Strategic Fit
• Consistent business underperformance
• Lower-than-average returns
• Outside buyer offering value in excess
of internal value
• Divestiture value creation potential
immediately evident
Financial Fit
• Accelerate de-leveraging path
• Balance EPS dilution with de-leveraging
• ~$2.8B gross (~$700MM net) tax asset expires at end of FY21
Other Considerations
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Conclusion
We have made significant progress reshaping Legacy Conagra
over the last four years
The acquisition of Pinnacle is the next step forward in our value
creation playbook
Our long-term targets and capital allocation policy create a
compelling investment opportunity
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3
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Appendix
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Reconciliation of Non-GAAP Financial Measures to
Reported Financial Measures (in millions)
FY18 Gross profit
Selling, general
and
administrative
expenses Operating profit 1
Income from continuing
operations before income
taxes and equity method
investment earnings
Income tax
expense
(benefit)
Income
tax rate
Net income
attributable to
Conagra
Brands, Inc.
Diluted EPS from
income from
continuing operations
attributable to
Conagra Brands, Inc
common stockholders
Reported $ 2,351.5 $ 1,398.4 $ 953.1 $ 874.8 $ 174.6 18.0 % $ 808.4 $ 1.95
% of Net Sales 29.6 % 17.6 % 12.0 %
Restructuring plans 7.8 30.2 38.0 38.0 11.0 27.0 0.07
Acquisitions and divestitures 0.6 15.1 15.7 15.7 4.8 10.9 0.03
Corporate hedging losses (gains) (6.2) — (6.2) (6.2) (1.6) (4.6) (0.01)
Pension settlement and valuation adjustment — — — 5.4 1.7 3.7 0.01
Intangible impairment charges — 4.8 4.8 4.8 1.1 3.7 0.01
Early exit of an unfavorable lease contract by purchasing
the building — 34.9 34.9 34.9 9.3 25.6 0.06
Gain on substantial liquidation of an international joint
venture — — — — (1.4) (2.9) (0.01)
Advertising and promotion expenses 2 — 278.6 — — — — —
Legal matters — 151.0 151.0 151.0 37.7 113.3 0.28
Wesson valuation allowance adjustment — — — — (78.6) 78.6 0.19
Tax reform adjustments — — — — 233.3 (233.3) (0.57)
Unusual tax items — — — — (42.1) 42.1 0.10
Income from discontinued operations, net of
noncontrolling interests — — — — — (14.3) —
Adjusted $ 2,353.7 $ 883.8 $ 1,191.3 $ 1,118.4 $ 349.8 28.9 % $ 858.2 $ 2.11
% of Net Sales 29.7 % 11.1 % 15.0 %
FY18 vs FY15 % of net sales change - reported 419 bps 162 bps 257 bps
FY18 vs FY15 % of net sales change - adjusted 373 bps (58) bps 425 bps
FY15 - FY18 CAGR – reported 23.3 %
FY15 - FY18 CAGR - adjusted 20.0 %
1. Operating profit is derived from taking Income from continuing operations before income taxes and equity method investment earnings, adding back Interest expense, net and removing
Pension and postretirement non-service income.
2. Advertising and promotion expense (A&P) has been removed from adjusted selling, general and administrative expense because this metric is used in reporting to management, and
management believes this adjusted measure provides useful supplemental information to assess the Company’s operating performance. Please note that A&P is not removed from adjusted
profit measures.
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Reconciliation of Non-GAAP Financial Measures to
Reported Financial Measures (in millions)
1. Operating profit is derived from taking Income from continuing operations before income taxes and equity method investment earnings, adding back Interest expense, net and removing
Pension and postretirement non-service income.
2. Advertising and promotion expense (A&P) has been removed from adjusted selling, general and administrative expense because this metric is used in reporting to management, and
management believes this adjusted measure provides useful supplemental information to assess the Company’s operating performance. Please note that A&P is not removed from adjusted
profit measures.
FY17 Gross profit
Selling,
general and
administrative
expenses Operating profit 1
Income from
continuing
operations before
income taxes and
equity method
investment earnings
Income
tax
expense
(benefit)
Income
tax rate
Net income
attributable
to Conagra
Brands, Inc.
Diluted EPS from
income from
continuing
operations
attributable to
Conagra Brands,
Inc common
stockholders
Reported $ 2,343.8 $ 1,474.0 $ 869.8 $ 729.5 $ 254.7 31.8% $ 639.3 $ 1.25
% of Net Sales 29.9 % 18.8 % 11.8%
Gain on sale of Spicetec and J.M. Swank
businesses — (197.4) (197.4) (197.4) (129.0) (68.4) (0.16)
Restructuring plans 15.5 46.4 61.9 63.6 22.2 41.4 0.09
Acquisitions and divestitures 0.5 30.9 31.4 31.4 11.8 19.6 0.05
Corporate hedging losses (gains) 5.1 — 5.1 5.1 1.9 3.2 0.01
Goodwill and intangible impairment charges — 304.2 304.2 304.2 46.5 257.7 0.59
Early extinguishment of debt — 93.3 93.3 93.3 33.1 60.2 0.14
Salaried pension plan lump sum settlement — — — 13.8 5.3 8.5 0.02
Advertising and promotion expenses 2 — 328.3 — — — — —
Legal matters — (5.7) (5.7) (5.7) (2.0) (3.7) (0.01)
Tax adjustment of valuation allowance — — — — 91.3 (91.3) (0.21)
Unusual tax items — — — — 14.6 (14.6) (0.03)
Income from discontinued operations, net of
noncontrolling interests — — — — — (95.2) —
Adjusted $ 2,364.9 $ 874.0 $ 1,162.6 $ 1,037.8 $ 350.4 31.6% $ 756.7 $ 1.74
% of Net Sales 30.2 % 11.2 % 14.9%
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Reconciliation of Non-GAAP Financial Measures to
Reported Financial Measures (in millions)
1. Operating profit is derived from taking Income from continuing operations before income taxes and equity method investment earnings, adding back Interest expense, net and removing
Pension and postretirement non-service income.
2. Advertising and promotion expense (A&P) has been removed from adjusted selling, general and administrative expense because this metric is used in reporting to management, and
management believes this adjusted measure provides useful supplemental information to assess the Company’s operating performance. Please note that A&P is not removed from adjusted
profit measures.
FY16 Gross profit
Selling, general
and
administrative
expenses Operating profit 1
Income from continuing
operations before
income taxes and equity
method investment
earnings
Income tax
expense
(benefit)
Income
tax rate
Net income
(loss)
attributable to
Conagra
Brands, Inc.
Diluted EPS from income
from continuing operations
attributable to Conagra
Brands, Inc common
stockholders
Reported $ 2,429.2 $ 1,720.8 $ 708.4 $ 108.8 $ 46.4 26.5 % $ (677.0) $ 0.29
% of Net Sales 28.0 % 19.9 % 8.2 %
Restructuring plans 49.0 206.9 256.0 281.8 103.6 178.2 0.41
Acquisitions and divestitures — — — — — — —
Corporate hedging losses (gains) (16.4) — (16.4) (16.4) (6.3) (10.1) (0.02)
Pension valuation adjustment — — — 348.5 133.4 215.1 0.49
Intangible impairment charges — 50.1 50.1 50.1 18.5 31.6 0.07
Early extinguishment of debt — 23.9 23.9 23.9 8.5 15.4 0.04
Advertising and promotion expenses 2 — 347.2 — — — — —
Legal matters — 5.0 5.0 5.0 1.9 3.1 0.01
Unusual tax items — — — — (11.0) 11.0 0.03
Loss from discontinued operations, net of
noncontrolling interests — — — — — 803.6 —
Rounding — — — — — — (0.02)
Adjusted $ 2,461.8 $ 1,087.7 $ 1,027.0 $ 801.7 $ 295.0 34.0 % $ 570.9 $ 1.30
% of Net Sales 28.4 % 12.6 % 11.9 %
36
Reconciliation of Non-GAAP Financial Measures to
Reported Financial Measures (in millions)
1. Operating profit is derived from taking Income from continuing operations before income taxes and equity method investment earnings, adding back Interest expense, net and removing
Pension and postretirement non-service income.
2. Advertising and promotion expense (A&P) has been removed from adjusted selling, general and administrative expense because this metric is used in reporting to management, and
management believes this adjusted measure provides useful supplemental information to assess the Company’s operating performance. Please note that A&P is not removed from adjusted
profit measures.
FY15 Gross profit
Selling,
general and
administrative
expenses Operating profit 1
Income from
continuing operations
before income taxes
and equity method
investment earnings
Income
tax
expense
(benefit)
Income
tax rate
Net income
(loss)
attributable to
Conagra
Brands, Inc.
Diluted EPS from income
from continuing
operations attributable to
Conagra Brands, Inc
common stockholders
Reported $ 2,297.7 $ 1,445.5 $ 852.2 $ 584.6 $ 212.7 32.0 % $ (252.6) $ 1.04
% of Net Sales 25.4 % 16.0 % 9.4 %
Restructuring plans 19.6 26.6 46.2 47.7 17.5 30.2 0.07
Corporate hedging losses (gains) 24.6 — 24.6 24.6 9.3 15.3 0.03
Pension valuation adjustment — — — 6.9 2.7 4.2 0.01
Goodwill and intangible impairment charges — 25.7 25.7 25.7 2.6 23.1 0.05
Early extinguishment of debt — 24.6 24.6 24.6 9.5 15.1 0.04
Integration of former Ralcorp business — 5.0 5.0 5.0 1.9 3.1 0.01
Advertising and promotion expenses 2 — 312.6 — — — —
Legal matters — (7.0) (7.0) (7.0) — (7.0) (0.02)
Unusual tax items — — — — 5.2 (5.2) (0.01)
Loss from discontinued operations, net of
noncontrolling interests — — — — — 701.4
Adjusted $ 2,341.9 $ 1,058.0 $ 971.3 $ 712.1 $ 261.4 33.0 % $ 527.6 $ 1.22
% of Net Sales 25.9 % 11.7 % 10.8 %
37
Reconciliation of Non-GAAP Financial Measures to
Reported Financial Measures (in millions)
FY17 YTD Q4 FY18 Q3 FY19 YTD
Trailing 4 Quarters
(as of FY19 Q3)
Net Sales $ 2,652.7 $ 690.7 $ 2,117.3 $ 2,808.0
Net sales from acquired businesses (5.8) (17.3) (25.7) (43.0)
Organic Net Sales $ 2,646.9 $ 673.4 $ 2,091.6 $ 2,765.0
Year-over-year change - Net Sales (7.5 )% 7.9 % 2.7 % 3.9 %
Net sales from acquired businesses (pp) 0.2 (2.7) (1.3) (1.6)
Organic Net Sales Growth (7.7 )% 5.2 % 1.4 % 2.3 %
FY16 YTD Q4 FY17 Q3 FY18 YTD
Trailing 4 Quarters
(as of FY18 Q3)
Net Sales $ 2,867.8 $ 640.2 $ 2,062.3 $ 2,702.5
Net sales from acquired businesses — — — —
Organic Net Sales $ 2,867.8 $ 640.2 $ 2,062.3 $ 2,702.5
FY17 YTD Q4 FY18 Q3 FY19 YTD
Trailing 4 Quarters
(as of FY19 Q3)
Operating Profit $ 445.8 $ 122.9 $ 365.0 $ 487.9
Restructuring plans 6.2 — 1.0 1.0
Adjusted Operating Profit $ 452.0 $ 122.9 $ 366.0 $ 488.9
Operating Profit Margin 16.8 % 17.8 % 17.2 % 17.4 %
Adjusted Operating Profit Margin 17.0 % 17.8 % 17.3 % 17.4 %
Reconciliation of Refrigerated & Frozen Organic Net Sales and Adjusted Operating Profit
38
Reconciliation of Non-GAAP Financial Measures to
Reported Financial Measures (in millions)
FY18 FY17
Net Sales $ 7,938.3 $ 7,826.9
Impact of foreign exchange (27.9) 29.2
Net sales from acquired businesses (169.1) (36.5)
Net sales from divested businesses (283.2) (370.0)
Net sales from sold Trenton plant (79.1) (86.8)
Organic Net Sales ex Trenton $ 7,379.0 $ 7,362.8
Year-over-year change - Net Sales 1.4 % (9.7 )%
Impact of foreign exchange (pp) (0.4) 0.3
Net sales from acquired businesses (pp) (2.1) (0.6)
Net sales from divested businesses (pp) 1.1 4.6
Net sales from sold Trenton plant (pp) 0.1 —
Organic Net Sales ex Trenton Growth 0.1 % (5.4 )%
FY17 FY16
Net Sales $ 7,826.9 $ 8,664.1
Net sales from divested businesses (370.0) (797.4)
Net sales from sold Trenton plant (86.8) (86.1)
Organic Net Sales ex Trenton $ 7,370.1 $ 7,780.6
39
Reconciliation of Non-GAAP Financial Measures to
Reported Financial Measures (in millions)
May 29, 2016
Receivables, less
allowance for
doubtful accounts Inventories Accounts payable Working capital
Reported 1 $ 650.1 $ 1,044.1 $ 706.7 $ 987.5
Divested businesses 2 (28.4) (12.2) (49.1) 8.5
Adjusted $ 621.7 $ 1,031.9 $ 657.6 $ 996.0
For the Fiscal Year Ended
May 27, 2018
Net cash flows from operating activities - continuing operations $ 919.7
Additions to property, plant and equipment (251.6)
Free cash flow $ 668.1
Reconciliation of Adjusted Working Capital
Reconciliation of Free Cash Flow
1. Balances are as reported in the Annual Report on Form 10-K for the fiscal year ended May 28, 2017.
2. Balances related to divested businesses that were not reported as assets and liabilities held for sale in the Annual Report on Form 10-K for the fiscal year ended May 28, 2017.
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