`

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 20-F
(Mark One)
oRegistration Statement Pursuant to Section 12(b) or (g) of the Securities Exchange Act of 1934
x☒
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Fiscal Year Ended December 31, 2017
2022
o☐Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
oShell Company Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission file number 001-37669
Nomad Foods Limited
(Exact Name of Registrant as Specified in Its Charter)
British Virgin Islands
(Jurisdiction of Incorporation or Organization)
No. 1 New Square
Bedfont Lakes Business Park
Feltham, Middlesex TW14 8HA, United Kingdom
(Address of Principal Executive Offices)
Jason AshtonSamy Zekhout
No. 1 New Square
Bedfont Lakes Business Park
Feltham, Middlesex TW14 8HA
Telephone:+(44) 208 918 3200
Facsimile:+(44) 208 918 3491
(Name, Telephone, E-mail and/or Facsimile Number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol (s)Name of Each Exchange on which Registered
Ordinary Shares, no par value  NOMDNew York Stock Exchange
Securities registered or to be registered pursuant to Section 12(g) of the Act: None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: Preferred Shares, no par value

 None
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report. 165,291,546172,550,253 Ordinary Shares and 1,500,000 Preferred SharesShares.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  ox Yes    xo  No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.  o  Yes    x  No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  x  Yes     o  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  x  Yes    o  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “large accelerated filer, accelerated filer, and emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer        x            Accelerated filer      o               Non-accelerated filer     oEmerging growth company o ☐


If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. o
†The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.x
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in
the filing reflect the correction of an error to previously issued financial statements.

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:


   U.S. GAAPo
International Financial Reporting Standards as Issued
by the International Accounting Standards Boardx
Othero

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.  o  Item 17    o  Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  o☐  Yes    x  No
6



TABLE OF CONTENTS

1
1
1
2
2
5
TERMS USED IN THIS REPORT
PRESENTATION OF FINANCIAL AND OTHER INFORMATION
1
INDUSTRY AND MARKET DATA
1
TRADEMARKS
2
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
2
PART I
4
Item 1:
45
45
45
2532
3847
3848
5363
6271
6373
6474
6574
7482
7482
7482
7482
7483
7583
7584
7584
7684
7685
7785
7785
8291
91
8391
8492
 



i



TERMS USED IN THIS REPORT
Unless the context otherwise requires, in this annual report, the term(s) (1) “we,” “us,” “our,” “Company,” “Nomad” and “our business” refer to Nomad Foods Limited (formerly known as Nomad Holdings Limited) and its consolidated subsidiaries, (2) “Iglo” and “the Iglo Group” refer solely to Nomad Foods Europe Holdings Limited (previously named Iglo Foods Holdings Limited) and its consolidated subsidiaries which we purchased on June 1, 2015 and (3) “Findus” and “the Findus Group” refers to Findus Sverige AB (and its consolidated subsidiaries) which we purchased from Lion/Gem Luxembourg 3 S.a.r.l. (the “Findus Parent”) on November 2, 2015 (the “Findus Acquisition”). All references in this annual report to the “Predecessor” refer to Iglo for all periods prior to its acquisition by the Company (the “Iglo Acquisition”) and all references to the “Successor” refer to the Company for all periods after the Iglo Acquisition.subsidiaries.
PRESENTATION OF FINANCIAL AND OTHER INFORMATION
In this annual report, references to “Euro” and “€“€” are to the single currency adopted by participating member states of the European Union ("EU") relating to Economic and Monetary Union, references to “$”, “US$” and “U.S. Dollars” are to the lawful currency of the United States of America, and references to “Pound Sterling”, “Sterling” and “£” are to the lawful currency of the United Kingdom (UK)("UK").
The historical financial information for the Company and the Iglo Group has been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS IASB”) and International Financial Reporting Standards as endorsedadopted by the European Union (together with IFRS IASB, “IFRS”) which can differ in certain significant respects from U.S. GAAP.
Unless otherwise noted, all financial information for the Company and Iglo provided in this annual report is denominated in Euros.
Historical Financial Information
This annual report includes our consolidated financial statements at and as of the yearyears ended December 31, 20172022 (the “Fiscal 20172022 Period”), at and as of the year ended December 31, 20162021 (the “Fiscal 2016 Period”), as of the nine months ended December 31, 2015 (the “Fiscal 2015 Transition Period”), as of the twelve months ended March 31, 2015 (the “Fiscal 20152021 Period”) and for the Predecessor, as of the five months ended MayDecember 31, 20152020 (the “Fiscal 2015 Predecessor Stub2020 Period”).
Non-IFRS Financial Measures
In this annual report, we present certain supplemental financial measures that are not recognized by IFRS. These financial measures are unaudited and have not been prepared in accordance with IFRS, SEC requirements or the accounting standards of any other jurisdiction. The non-IFRS financial measures used in this annual report are Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA and Adjusted EBITDA margin. For additional information on why we present non-IFRS financial measures, the limitations associated with using non-IFRS financial measures and reconciliations of our non-IFRS financial measures to the most comparable applicable IFRS measure, see Item 5: Operating and Financial Review and Prospects.
INDUSTRY AND MARKET DATA
We obtained the industry, market and competitive position data throughout this annual report from our own internal estimates and research as well as from industry and general publications and research, surveys and studies conducted by Euromonitor. Industry surveys and publications generally state that the information contained therein has been obtained from sources believed to be reliable, but the accuracy and completeness of the information contained in industry publications is not guaranteed. While we believe that each of these studies and publications is reliable, we have not independently verified market and industry data from third-party sources. While we believe our internal company research is reliable and the definitions of our market and industry are appropriate, neither this research nor these definitions have been verified by any independent source. Further, while we believe the market opportunity information included in this annual report is generally reliable, such information is inherently imprecise. In addition, projections, assumptions and estimates of the future performance of the industry in which we operate and our future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in Item 3D: Key Information - Risk Factors. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us. See Cautionary Note Regarding Forward-Looking Statements.


Market share data presented throughout this annual report is measured by retail sales value. The frozen food market data we refer to throughout this annual report includes the following categories: Frozen Processed Meat, Frozen Processed Seafood, Frozen Meat Substitutes, Frozen Pizza, Frozen Ready Meals, Frozen Noodles, Frozen Soup, Frozen Potatoes, Frozen Baked Goods, and Processed Frozen Vegetables.Vegetables and Ice Cream.

1

TRADEMARKS
We operate under a number of trademarks, including, among others, “IgloBirds Eye”, "Findus", “iglo,” “Birds EyeLedo” and “FindusFrikom”, all of which are registered under applicable intellectual property laws. This annual report contains references to our trademarks and service marks and to those belonging to other entities. Solely for convenience, trademarks and trade names referred to in this annual report may appear without the ® or TM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent possible under applicable law, our rights or the rights of the applicable licensor to these trademarks and trade names. We do not intend our use or display of other companies’ trade names, trademarks or service marks to imply a relationship with, or endorsement or sponsorship of us by, any other companies.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Some of the statements in this annual report constitute forward-looking statements that do not directly or exclusively relate to historical facts. You should not place undue reliance on such statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. Forward-looking statements included in this annual report include statements regarding:
•our beliefs and intentions regarding our strategic initiatives and their impact on the growth and
profitability of our business;
•our intent to profitably grow our business through our strategic initiatives;
•our intent to seek additional acquisition opportunities in food products and our expectation regarding competition for acquisitions;
•our expectations concerning the timing for completion of the Green Isle Foods Ltd. acquisition and source of funding for the acquisition;
our expectations concerningbeliefs regarding the impact of such acquisition;the exit by the UK from the EU ("Brexit") on our business;
•our expectations concerning our ability to fund our liquidity requirements and to raise cash through equity and debt offerings;
•our expectations concerning our capital expenditures in 2018;2023;
•our beliefs regarding our sales, marketing and advertising strategies, competitive strengths and ability to successfully compete in the markets in which we participate;
•our expectations concerning consumer demand for our products, our future growth opportunities, market share and sales channels, including online channels;
•our beliefs and intentions regarding the impact of key industry trends on our business, our actions in response to such trends and the resulting impact on our profitability and competitive position;
•our future operating and financial performance;
our intent to settle any Founder Preferred Shares Annual Dividend Amount (as defined herein) with equity;
•our belief that we have sufficient spare capacity to accommodate future growth in our main product categories and to accommodate the seasonal nature of some of our products;
•our beliefs and intentions regarding our sustainability program;
•the anticipated benefits of diversifying our sources of sustainable food products and reduced exposure to Russia;
•our intent to rely on some of the available foreign private issuer exemptions to the New York Stock Exchange (the “NYSE”) corporate governance rules; and
•the accuracy of our estimates and key judgments regarding certain tax matters and accounting valuations.

2



The forward-looking statements contained in this annual report are based on assumptions that we have made in light of our management’s experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. As you read and consider this annual report, you should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in these forward-looking statements.
These factors include but are not limited to:
•the long-term impact of the COVID-19 pandemic on our business, suppliers, co-manufacturers, distributors, transportation or logistics providers, customers, consumers and employees;
•disruptions or inefficiencies in our operations or supply chain, including as a result of the COVID-19 pandemic, and our ability to maintain the health and safety of our workforce;
•the duration, spread and intensity of the COVID-19 pandemic and related government restrictions and other government responses;
•our ability to successfully implement our strategies and strategic initiatives and recognize the anticipated benefits of such strategic initiatives;
if the transaction closes, •the anticipated benefits from our recent acquisitions including the Green Isle Foods Ltd. acquisitionFortenova Group's Frozen Food Business Group (the "Fortenova Acquisition") and Findus Switzerland business may take longer to realize and may cost more to achieve than expected;expected, particularly since the Fortenova Acquisition represents entry into a new product category and new geographies;
•uncertainty about the potential adverse impact of Brexit on currency exchange rates, global economic conditions and cross-border agreements that affect our business;
•the loss of any of our executive officers or members of our senior management team or other key employees;
•the loss of any of our major customers or a decrease in demand for our products;
our ability to effectively compete in our markets;
•changes in consumer preferences and our failure to anticipate and respond to such changes or to successfully develop and renovate products;
•our ability to successfully interpret and respond to key industry trends and to realize the expected benefits of our responsive actions;
•our ability to protect our brand names and trademarks;
•the commercial success of our Green Cuisine brand of products, including as a result of its expansion into continental Europe, and other innovations introduced to the markets, and other innovations introduced to the markets and our ability to accurately forecast the brand’s performance;
•our ability to effectively compete in our markets, including the ability of our Green Cuisine brand to effectively penetrate the markets in continental Europe;
•our ability to commercialize sustainability and accelerate our presence in discounter stores;
•economic conditions that may affect our future performance including increases in inflation and exchange rate fluctuations;
•fluctuations in the availability of food ingredients and packaging materials that we use in our products;
•our ability to effectively mitigate factors that negatively impact our supply of raw materials;
•disruptions in our information technology systems, whether as a result of cyber attack or otherwise, supply network, manufacturing and distribution facilities or our workforce or the workforce of our suppliers;
•our ability to continue to comply with covenants and the terms of our credit instruments and our ability to obtain additional financing, as needed, to fund our liquidity requirements and capital expenditures;
•availability of debt and equity financing under favorable terms;
•increases in operating costs, including labor costs, and our ability to manage our cost structure;
•the incurrenceoccurrence of liabilities not covered by our insurance;
3

•our ability to successfully implement, and engage other stakeholders in implementing, our sustainability program;
•our ability to successfully diversify;
•the loss of our financial arrangements with respect to receivables factoring;
•the loss of our foreign private issuer status;
•the effects of reputational damage from unsafe or poor qualitypoor-quality food products, particularly if such issues involve products we manufactured or distributed;
•our failure to comply with, and liabilities related to, environmental, health and safety laws and regulations; and
the potential adverse impact of Brexit on currency exchange rates, global economic conditions and cross-border agreements that affect our business; and
•changes in applicable laws or regulations.
These and other factors are more fully discussed in Item 3D: Key Information - Risk Factors and elsewhere in this annual report. These risks could cause actual results to differ materially from those implied by forward-looking statements in this annual report.
All information contained in this annual report is materially accurate and complete as of the date of this annual report. You should keep in mind, however, that any forward-looking statement made by us in this annual report, or elsewhere, speaks only as of the date on which we make it. New risks and uncertainties come up from time to time, and it is impossible for us to predict these events or how they may affect us. We do not undertake any obligation to update or revise any forward-looking statements after the date of this annual report, whether as a result of new information, future events or otherwise, except as required by law. In light of these risks and uncertainties, you should keep in mind that any event described in a forward-looking statement made in this annual report or elsewhere might not occur.

4


PART I
Item 1:Identity of Directors, Senior Management and Advisers
A.Directors and Senior Management
Not applicable.Item 1:    Identity of Directors, Senior Management and Advisers
B.Advisers
Not applicable.A.    Directors and Senior Management
C.Auditors
Not applicable.
B.    Advisers
Item 2:Offer Statistics and Expected Timetable
A.Offer Statistics
Not applicable.
B.Method and Expected Timetable
Not applicable.
C.    Auditors
Item 3:Key Information
A.Selected Financial Data
Not applicable.
Item 2:    Offer Statistics and Expected Timetable
A.    Offer Statistics
Not applicable.
B.    Method and Expected Timetable
Not applicable.
Item 3:    Key Information
A.    Selected Financial Data
The following table sets forth selected historical consolidated financial and other data for the Company and Iglo for the periods presented. The selected historical consolidated financial data below should be read in conjunction with our Audited Consolidated Financial Statements and related notes (Item 18), as well as Item 4: Information on the Company and Item 5: Operating and Financial Review and Prospects of this annual report.
Following the Iglo Acquisition, Iglo is considered to be our Predecessor under applicable SEC rules and regulations.
In June 2015, the Board of Directors approved a change in Nomad’s fiscal year end from March 31 to December 31 in order to align Nomad’s fiscal year with the Iglo Group’s historical reporting calendar. As a result of this change, the consolidated statements include presentation of the Successor twelve month periods to December 31, 2017 and 2016 and the nine month period from April 1, 2015 to December 31, 2015.
The statement of income data for the Fiscal Period 2017, Fiscal Period 2016, Fiscal 2015 Transition2022 Period, Fiscal 20152021 Period and Fiscal 2015 Predecessor Stub2020 Period and the balance sheet data as of December 31, 20172022 and 20162021 have been derived from our audited consolidated financial statements included elsewhere in this annual report. Balance sheet information for Nomad for December 31, 2015
5

Year
ended
Dec 31 2022		Year
ended
Dec 31 2021		Year
ended
Dec 31 2020		Year
ended
Dec 31 2019		Year
ended
Dec 31 2018
€m€m€m€m€m
Statement of Income data:
Revenue2,939.7 2,606.6 2,515.9 2,324.3 2,172.8 
Cost of sales(2,124.4)(1,862.3)(1,753.4)(1,626.4)(1,519.3)
Gross profit815.3 744.3 762.5 697.9 653.5 
Other operating expenses(391.2)(356.3)(382.7)(359.9)(352.7)
Exceptional items(48.7)(45.3)(20.6)(54.5)(17.7)
Operating profit375.4 342.7 359.2 283.5 283.1 
Net finance costs(54.4)(106.0)(63.7)(73.2)(56.0)
Profit before tax321.0 236.7 295.5 210.3 227.1 
Taxation(71.2)(55.7)(70.4)(56.7)(56.6)
Profit for the period249.8 181.0 225.1 153.6 170.5 
Basic weighted number of shares174,279,621 178,070,770 194,019,070 192,004,803 175,622,538 
Diluted weighted number of shares174,279,621 178,070,770 197,894,106 198,425,877 175,793,631 
Basic earnings per share1.43 1.02 1.16 0.80 0.97 
Diluted earnings per share1.43 1.02 1.14 0.78 0.97 
Balance Sheet data:
Total assets6,326.1 6,170.8 5,580.6 5,904.5 5,340.8 
Total equity2,606.2 2,299.0 2,126.1 2,556.7 2,059.1 
Share capital— — — — — 

B.    Capitalization and financial information for IgloIndebtedness
Not applicable.
C.    Reasons for the years ended December 31, 2014Offer and 2013 have been derived from audited financial statements not included elsewhere in this annual report.
Neither the Successor nor the Predecessor declared or paid cash dividends in the periods presented. All results are continuing.


  Successor Successor Successor Successor  Predecessor Predecessor Predecessor
  
Year
ended
Dec 31 2017
 Year
ended
Dec 31 2016		 9 months
ended
Dec 31 2015		 Year
ended
Mar 31 2015		  5 months
ended
May 31 2015		 Year ended
Dec 31 2014		 Year ended
Dec 31 2013
  €m €m €m €m  €m €m €m
Statement of Income data:               
Revenue 1,956.6
 1,927.7
 894.2
 —
  640.3
 1,500.9
 1,505.8
Cost of sales (1,357.2) (1,356.7) (663.0) —
  (417.9) (970.9) (1,001.8)
Gross profit 599.4
 571.0
 231.2
 —
  222.4
 530.0
 504.0
Other operating expenses (319.3) (298.4) (138.6) (0.7)  (109.5) (254.2) (231.8)
Exceptional items (37.2) (134.5) (58.1) (0.7)  (84.3) (52.9) (83.8)
Charge related to Founder Preferred Shares Annual Dividend Amount —
 —
 (349.0) (165.8)  —
 —
 —
Credit/(Charge) related to Warrant Redemption Liability —
 —
 0.4
 (0.4)  —
 —
 —
Operating profit/(loss) 242.9
 138.1
 (314.1) (167.6)  28.6
 222.9
 188.4
Net finance (costs)/income (74.4) (62.1) (35.5) 0.1
  (115.7) (290.2) (227.6)
Profit/(loss) before tax 168.5
 76.0
 (349.6) (167.5)  (87.1) (67.3) (39.2)
Taxation (32.0) (39.6) 12.3
 —
  (40.9) (41.8) (2.0)
Profit/(loss) for the period attributable to Parent Company 136.5
 36.4
 (337.3) (167.5)  (128.0) (109.1) (41.2)
Basic weighted number of shares 176,080,272
 183,518,743
 145,590,810
 50,025,000
  n.p.
 n.p.
 n.p.
Diluted weighted number of shares 184,786,162
 183,528,621
 145,590,810
 50,025,000
  n.p.
 n.p.
 n.p.
Basic earnings/(loss) per share 0.78
 0.20
 (2.32) (3.35)  n.p.
 n.p.
 n.p.
Diluted earnings/(loss) per share 0.74
 0.20
 (2.32) (3.35)  n.p.
 n.p.
 n.p.
Balance Sheet data:               
Total assets 4,601.7
 4,709.5
 4,929.7
 447.4
  n.p.
 3,543.4
 3,461.2
Total equity 1,852.6
 1,902.5
 1,888.1
 274.9
  n.p.
 (657.5) (550.4)
Share capital —
 —
 —
 —
  n.p.
 0.1
 0.1
n.p. not presented
Currency and Exchange Rates. Our reporting currency is the Euro. The following table sets forth, for the periods and dates indicated, the period end average, high and low exchange rates in U.S. Dollars per €1.00.
 Average
Year ended December 31, 2017$1.1393
Year ended December 31, 2016$1.1036
Year ended December 31, 2015$1.1032
Year ended December 31, 2014$1.3207
Year ended December 31, 2013$1.3300


 
High
$
 
Low
$
March 2018 (as of March 20, 2018)$1.2446
 $1.2155
February 2018$1.2555
 $1.2188
January 2018$1.2537
 $1.1916
December 2017$1.2026
 $1.1718
November 2017$1.1961
 $1.1554
October 2017$1.1880
 $1.1575
September 2017$1.2092
 $1.1717
Our inclusionUse of these exchange rates and other exchange rates specified elsewhere in this annual report should not be construed as representations that the Euro amounts actually represent such U.S. Dollar amounts or could have been or could be converted into U.S. Dollars at any particular rate, if at all. The Euro foreign exchange reference rate used in this annual report is the Bloomberg Generic Composite Rate. On March 21, 2018, this rate was $1.2242 per €1.00. These exchange rates may differ from the exchange rate in effect on and as of the date of this annual report.Proceeds
B.Capitalization and Indebtedness
Not applicable.
C.Reasons for the Offer and Use of Proceeds
Not applicable.
6
D.Risk Factors

D.    Risk Factors
An investment in our ordinary shares carries a significant degree of risk. You should carefully consider the following risks and other information in this annual report, including our consolidated financial statements and related notes included elsewhere in this annual report, before you decide to purchase our ordinary shares. Additional risks and uncertainties of which we are not presently aware or that we currently deem immaterial could also affect our business operations and financial condition. If any of these risks actually occur, our business, financial condition, results of operations or prospects could be materially affected. As a result, the trading price of our ordinary shares could decline, and you could lose part or all of your investment.
i.Risk Factor Summary
The risks described below include, but are not limited to, the following:
Risks Related to Our Business and Industry
•We operate in a highly competitive market and our failure to compete effectively could adversely affect our results of operations.market.
The market for frozen food is highly competitive. Our competitors include retailers who promote private label products and well-established branded producers that operate on both a national and an international basis across single or multiple frozen food categories. We also face competition more generally from chilled food, distributors and retailers of fresh products, baked goods and ready-made meals. Our competitors generally compete with us on the basis of price, actual or perceived quality of products, brand recognition, consumer loyalty, product variety, new product development and improvements to existing products. We may not successfully compete with our existing competitors and new competitors may enter the market. Discounters are supermarket retailers which offer a narrow range of food and grocery products at discounted prices and which typically focus on non-branded rather than branded products. The increase in discounter sales may adversely affect the sales of our branded products. Further, we are increasing our investment in online sales (sales made through retailers’ online platforms). However, there is no guarantee we will achieve our expected return on investment from this strategy. The growth of online retailers, and the corresponding growth in our online sales, may also adversely affect our competitive position.


In addition, we cannot predict the pricing or promotional actions of our competitors or their effect on consumer perceptions or the success of our own advertising and promotional efforts. Our competitors develop and launch products targeted to compete directly with our products. Our retail customers, most of which promote their own private label products, control the shelf space allocations within their stores. As a result, they may allocate more shelf space to private label products or to our branded competitors’ products in accordance with their respective promotional strategies. Decreases in shelf space allocated to our products, increases in competitor promotional activity, aggressive marketing strategies by competitors or other factors may require us to reduce our prices or invest greater amounts in advertising and promotion of our products to ensure our products remain competitive.
Furthermore, some of our competitors may have substantially greater financial, marketing and other resources than we have. This creates competitive pressures that could cause us to lose market share or require us to lower prices, increase advertising expenditures or increase the use of discounting or promotional campaigns. These competitive factors may also restrict our ability to increase prices, including in response to commodity and other cost increases. If we are unable to continue to respond effectively to these and other competitive pressures, our customers may reduce orders of our products, may insist on prices that erode our margins or may allocate less shelf space and fewer displays for our products. These or other developments could materially and adversely affect our sales volumes and margins and result in a decrease in our operating results, which could have a material adverse effect on our business, financial condition and results of operations.
•Sales of our products are subject to changing consumer preferences and trends; if we do not correctly anticipate such changes, our sales and profitability may decline.trends.
There are a number of trends in consumer preferences which have an impact on us and the frozen food industry as a whole. These include, among others, preferences for speed, convenience and ease of food preparation; natural, nutritious and well-proportioned meals; and products that are sustainably sourced and produced and are otherwise environmentally friendly. Concerns as to the health impacts and nutritional value of certain foods may increasingly result in food producers being encouraged or required to produce products with reduced levels of salt, sugar and fat and to eliminate trans-fatty acids and certain other ingredients. Consumer preferences are also shaped by concern over waste reduction and the environmental impact of products. The success of our business depends on both the continued appeal of our products and, given the varied backgrounds and tastes of our customer base, our ability to offer a sufficient range of products to satisfy a broad spectrum of preferences. Any shift in consumer preferences in the United Kingdom, Germany, France, Italy, Sweden or any other material market in which we operate could have a material adverse effect on our business. Consumer tastes are also susceptible to change. In addition, consumers with increasingly busy lifestyles are choosing the online grocery channel as a more convenient and faster way of purchasing their food products, and are also increasingly using the internet for meal ideas. Our competitiveness therefore depends on our ability to predict and quickly adapt to consumer preferences and trends, exploiting profitable opportunities for product development without alienating our existing consumer base or focusing excessive resources or attention on unprofitable or short-lived trends. If we are unable to respond on a timely and appropriate basis to changes in demand or consumer preferences and trends, our sales volumes and margins could be adversely affected.
•Our future results and competitive position are dependent on the successful development of new products and improvement of existing products, which is subject to a number of difficultiesproducts.
•The ongoing conflict between Ukraine and uncertainties.
Our future results and ability to maintain or improve our competitive position depend on our capacity to anticipate changes in our key markets and to successfully identify, develop, manufacture, market and sell new or improved products in these changing markets. We aim to introduce new products and re-launch and extend existing product lines on a timely basis in order to counteract obsolescence and decreases in sales of existing products as well as to increase overall sales of our products. The launch and success of new or modified products are inherently uncertain, especially as to the products’ appeal to consumers, and there can be no assurance as to our continuing ability to develop and launch successful new products or variations of existing products. The failure to launch a product successfully can give rise to inventory write-offs and other costs and can affect consumer perception of our other products. Market factorsRussia and the need to develop and provide modified or alternative products may also increase costs. In addition, launching new or modified products can result in cannibalizationwider geopolitical impact of sales of our existing products if consumers purchase the new product in place of our existing products. If we are unsuccessful in developing new products in response to changing consumer demands or preferences in an efficient and economical manner, or if our competitors respond more effectively than we do, demand for our products may decrease, whichconflict could materially and adversely affect our business.
•We may not be able to increase prices to offset inflationary pressures on costs for materials or other inputs.
•Pandemics could have a material adverse impact on our business, financial condition and results of operations.operations and financial condition.

•We are subject to the ongoing negotiations and implementation of the exit of the UK from the EU.


•We are exposed to economicmacroeconomic and other trends that could adversely impact our operations in our key geographies.Key Markets.
•We conduct operations in our key markets of the United Kingdom, Italy, Germany, Sweden, France, and Norway, from which approximately 80% of our revenue was generated during the last fiscal period. We are particularly influenced by economic developments and changes in consumer habits in those countries.
The geographic markets in which we compete have been affected by negative macroeconomic trends which have affected consumer confidence. For example, Brexit has created political and economic uncertainty both in the United Kingdom and the other European Union member states. A deterioration in economic conditions could result in increased unemployment rates, increased short and long term interest rates, consumer and commercial bankruptcy filings, a decline in the strength of national and local economies, and other results that negatively impact household incomes. This can result in consumers purchasing cheaper private label products instead of equivalent branded products. Such macroeconomic trends could, among other things, negatively impact global demand for branded and premium food products, which could result in a reduction of sales or pressure on margins of our branded products or cause an increasing transfer to lower priced product categories.
Our inabilitymay not be able to source raw materials or other inputs of an acceptable type or quality, could adversely affect our results of operations.quality.
We use significant quantities of food ingredients and packaging materials and are therefore vulnerable to fluctuations in the availability and price of food ingredients, packaging materials, other supplies and energy costs. In particular, raw materials such as fish, livestock and crops have historically represented a significant portion of our cost of sales, and accordingly, adverse changes in raw material prices can impact our results of operations.
Specifically, the availability and the price of fish, vegetables and other agricultural commodities, including poultry and meat, can be volatile. We are also affected by the availability of quality raw materials, most notably fish, which can be impacted by the fishing and agricultural policies of the European Union including national or international quotas that can limit volume of raw materials. General economic conditions, unanticipated demand, problems in manufacturing or distribution, natural disasters, weather conditions during the growing and harvesting seasons, plant, fish and livestock diseases and local, the impact of Brexit, national or international quarantines can also adversely affect availability and prices of commodities in the long and short term.
While we attempt to negotiate fixed prices for certain materials with our suppliers for periods ranging from one month to a full year, we cannot guarantee that our strategy will be successful in managing input costs if prices increase for extended periods of time. Moreover, there is no market for hedging against price volatility for certain raw materials and accordingly such materials are bought at the spot rate in the market.
Our ability to avoid the adverse effects of a pronounced, sustained price increase in raw materials is limited. Any increases in prices or scarcity of ingredients or packaging materials required for our products could increase our costs and disrupt our operations. If the availability of any of our inputs is constrained for any reason, we may not be able to obtain sufficient supplies or supplies of a suitable quality on favorable terms or at all. Such shortages could materially adversely affect our market share, business, financial condition and results of operations.
Our inability to pass on price increases for materials or other inputs to our customers could adversely affect our results of operations.
Our ability to pass through increases in the prices of raw materials to our customers depends, among others, on prevailing competitive conditions and pricing methods in the markets in which we operate, and we may not be able to pass through such price increases to our customers. Even if we are able to pass through increases in prices, there is typically a time lag between cost increases impacting our business and implementation of product price increases during which time our profit margin may be negatively impacted. Recovery of cost inflation, driven by both commodity cost increases or changes in the foreign exchange rate of the currency the commodity is denominated in, can also lead to disparities in retailers’ shelf-prices between different brands which can result in a competitive disadvantage and volume decline. During our negotiations to increase our prices to recover cost increases, customers may take actions which exacerbate the impact of such cost increases, for example by ceasing to offer our products or deferring orders until negotiations have ended. Our inability to pass through price increases in raw materials and preserve our profit margins in the future could materially adversely affect our business, financial condition and results of operations.


•We rely on sales to a limited number of large food retailers and should they perform poorly or give higher priority to private label or other brands or products or if the concentration and buying power of these large retailers increase, our business could be adversely affected.retailers.
Our customers include supermarkets and large chain food retailers in the United Kingdom, Germany, France, Italy and Sweden. Throughout our markets, the food retail segments are highly concentrated. For the year ended December 31, 2017, our top 10 customers account for 41% of sales. In recent years, the major multiple retailers in those countries have increased their share of the grocery market and price competition between retailers has intensified. This price competition has led the major multiple retailers to seek lower prices from their suppliers, including us. The strength of the major multiple retailers’ bargaining position gives them significant leverage over their suppliers in negotiating pricing, product specification and the level of supplier participation in promotional campaigns and offers, which can reduce our margins. Further consolidation among the major multiple retailers or disproportionate growth in relation to their competitors could increase their relative negotiating power and allow them to force a negative shift in our trade terms. Our results of operations could also be adversely affected if these retailers suffer a significant deterioration in sales performance, if we are required to reduce our prices or increase our promotional spending activity as a consequence, if we are unable to collect accounts receivable from our customers, if we lose business from a major customer or if our relationship with a major customer deteriorates.
Our retail customers also offer private label products that compete directly with our products for retail shelf space and consumer purchases. Private label products typically have higher margins for retailers than other branded products. Accordingly, there is a risk that our customers may give higher priority to private label products or the branded products of our competitors, which would adversely affect sales of our products. Our major multiple retail customers are also expanding into non-food product lines in their stores, thereby exerting pressure on available shelf space for other categories such as food products. •We may be unablesubject to adequately respond to these trends and, as a result, the volume of our sales may decrease or we may need to lower the prices of our products, either of which could adversely affect our business, financial condition and results of operations.
Increasedincreased distribution costs or disruption of transportation services could adversely affect our business and financial results.services.
Distribution costs have historically fluctuated significantly over time, particularly in connection with oil prices, and increases in such costs could result in reduced profits. In addition, certain factors affecting distribution costs are controlled by our third party carriers. To the extent that the market price for fuel or freight or the number or availability of carriers fluctuates, our distribution costs could be affected. Furthermore, temporary or long-term disruption of transportation services due to weather-related problems, strikes or other events could impair our ability to supply products affordably and in a timely manner or at all. Failure to deliver our perishable food products promptly could also result in inventory spoilage. These factors could impact our commercial reputation and result in our customers reducing their orders or ceasing to order our products. Any increases in the cost of transportation, and any disruption in transportation, could have a material adverse effect on our business, financial condition and results of operations. We require the use of refrigerated vehicles to ship our products and such distribution costs represent an important element of our cost structure. We are dependent on third parties for almost all of our transportation requirements. In Italy, our distribution network is shared with Unilever’s ice cream business, which provides us with an advantage over smaller market participants. Our arrangement with Unilever is governed by a distribution agreement which expires in 2022.
We do not have long-term contractual agreements with our key customers, which exposes us to increased risks with respect to such customers.
As is typical in the food industry, sales to our key customers in our major markets are made on a daily demand basis. We generally do not have long-term contractual commitments to supply such customers and must renegotiate supply and pricing terms of our products on a regular basis. Customarily, trade terms are renegotiated annually; however, ad-hoc changes are often made on an informal basis, such as by email, to reflect discounts and promotional arrangements. Amounts paid are subject to end of period reconciliations to reflect these informal arrangements. In some cases, our customers have claimed reimbursement for informal discount arrangements going back multiple periods. In addition, we do not have written contractual arrangements with a number of our other customers. Most of our customer relationships or arrangements could be terminated or renegotiated at any time and, in some cases, without reasonable notice.




Our customers may not be creditworthy.
Our business is subject to the risks of nonpayment and nonperformance by our customers. We manage our exposure to credit risk through credit analysis and monitoring procedures, and sometimes use letters of credit, prepayments and guarantees. However, these procedures and policies cannot fully eliminate customer credit risk, and to the extent our policies and procedures prove to be inadequate, it could negatively affect our financial condition and results of operations. In addition, some of our customers may be highly leveraged and subject to their own operating and regulatory risks and, even if our credit review and analysis mechanisms work properly, we may experience financial losses in our dealings with such parties. We do not maintain credit insurance to insure against customer credit risk. If our customers fail to fulfill their contractual obligations, it may have an adverse effect on our business, financial condition and results of operation.
•Failure to protect our brand names and trademarks could materially affect our business.
•Our principal brand names and trademarks (such as Birds Eye, Iglo and Findus) are key assets of our business and our success depends upon our ability to protect our intellectual property rights. We rely upon trademark laws to establish and protect our intellectual property rights, but cannot be certain that the actions we have taken or will take in the future will be adequate to prevent violation of our proprietary rights. Litigation may be necessary to enforce our trademark or proprietary rights or to defend us against claimed infringement of the rights of third parties. In addition, the Birds Eye brand, which we use in the United Kingdom, is used by other producers in the United States and Australia. Even though the brands have different logos, adverse publicity from such other markets may negatively impact the perception of our brands in our respective markets. Adverse publicity, legal action or other factors could lead to substantial erosion in the value of our brands, which could lead to decreased consumer demand and could have a material adverse effectdependent on our business, financial condition and results of operations.third-party suppliers.
•Health concerns or adverse developments with respect to the safety or quality of products of the food industry in general, or our own products specifically, may damage our reputation, increase our costs of operations and decrease demand for our products.
Food safety•A failure in our cold chain could lead to unsafe food conditions and the public’s perception that our products are safe and healthy are essential to our image and business. We sell food products for human consumption, which subjects us to safety risks such as product contamination, spoilage, misbranding or product tampering. Product contamination, including the presence of a foreign object, substance, chemical or other agent or residue or the introduction of a genetically modified organism, could require product withdrawals or recalls or the destruction of inventory, and could result in negative publicity, temporary plant closures and substantial costs of compliance or remediation. For example, while it did not significantly impact our Predecessor’s business, many food companies including our Predecessor had to deal with the reputational impact of the industry-wide horsemeat contamination issue that arose across most European food markets in January 2013. In addition, food producers, including us, have been targeted by extortion attempts that threatened to contaminate products displayed in supermarkets. Such attempts can result in the temporary removal of products from shelf displays as a precautionary measure and result in lost revenue. We may also be impacted by publicity concerning any assertion that our products caused illness or injury. In addition, we could be subject to claims or lawsuits relating to an actual or alleged illness stemming from product contamination or any other incidents that compromise the safety and quality of our products. Any significant lawsuit or widespread product recall or other events leading to the loss of consumer confidence in the safety and quality of our products could damage our brand, reputation and image and negatively impact our sales, profitability and prospects for growth. In addition, product recalls are difficult to foresee and prepare for and, in the event we are required to recall one or more of our products, such recall may result in loss of sales due to unavailability of our products and may take up a significant amount of our management’s time and attention. We maintain systems designed to monitor food safety risks and require our suppliers to do so as well. However, we cannot guarantee that our efforts will be successful or that such risks will not materialize. In addition, although we attempt, through contractual relationships and regular inspections, to control the risk of contamination caused by third parties in relation to the several manufacturing and distribution processes we outsource, we cannot guarantee that our efforts will be successful or that contamination of our products by third parties will not materialize.
We are also subject to further risks affecting the food industry generally, including risks posed by widespread contamination and evolving nutritional and health-related concerns. Regulatory authorities may limit the supply of certain types of food products in response to public health concerns and consumers may perceive certain products to be unsafe or unhealthy. In addition, governmental regulations may require us to identify replacement products to offer to our customers or, alternatively, to discontinue certain offerings or limit the range of products we offer. We may be unable to find substitutes that are as appealing to our customer base, or such substitutes may not be widely available or may be available only at increased costs. Such substitutions or limitations could also reduce demand for our products.


We could also be subject to claims or lawsuits relating to an actual or alleged illness or injury or death stemming from the consumption of a misbranded, altered, contaminated or spoiled product, which could negatively affect our business. Awards of damages, settlement amounts and fees and expenses resulting from such claims and the public relations implications of any such claims could have an adverse effect on our business. The availability and price of insurance to cover claims for damages are subject to market forces that we do not control, and such insurance may not cover all the costs of such claims and would not cover damage to our reputation. Even if product liability claims against us are not successful or fully pursued, these claims could be costly and time consuming, increase our insurance premiums and divert our management’s time and resources towards defending them rather than operating our business. In addition, any adverse publicity concerning such claims, even if unfounded, could cause customers to lose confidence in the safety and quality of our products and damage our reputation and brand image.
•Potential liabilities and costs from litigation could adversely affect our business.
There is no guarantee that we will be successful in defending ourselves in civil, criminal or regulatory actions, including under general, commercial, employment, environmental, food quality and safety, anti-trust and trade, advertising and claims, and environmental laws and regulations, or in asserting our rights under various laws. For example, our marketing or claims could face allegations of false or deceptive advertising or other criticisms which could end up in litigation and result in potential liabilities or costs. In addition, we could incur substantial costs and fees in defending ourself or in asserting our rights in these actions or meeting new legal requirements. The costs and other effects of potential and pending litigation and administrative actions against us, and new legal requirements, cannot be determined with certainty and may differ from expectations.
•We are exposed to local business and tax risks in many different countries.
We operate in various countries in Europe, predominantly in the United Kingdom, Germany, France, Italy, Sweden and Norway. As a result, our business is subject to risks resulting from differing legal, political, social and regulatory requirements, economic conditions and unforeseeable developments in these markets, all or any of which could result in disruption of our activities. These risks include, among others, political instability, differing economic cycles and adverse economic conditions, unexpected changes in regulatory environments, currency exchange rate fluctuations, inability to collect payments or seek recourse under or comply with ambiguous or vague commercial or other laws, changes in distribution and supply channels, foreign exchange controls and restrictions on repatriation of funds, and difficulties in attracting and retaining qualified management and employees. Our overall success in the markets in which we operate depends, to a considerable extent, on our ability to effectively manage differing legal, political, social and regulatory requirements, economic conditions and unforeseeable developments. We cannot guarantee that we will succeed in developing and implementing policies and strategies which will be effective in each location where we do business.
We must comply with complex and evolving tax regulations in the various jurisdictions in which we operate, which subjects us to international tax compliance risks. Some tax jurisdictions in which we operate have complex and subjective rules regarding income tax, value-added tax, sales or excise tax and transfer tax. From time to time, our foreign subsidiaries are subject to tax audits and may be required to pay additional taxes, interest or penalties should the taxing authority assert different interpretations, or different allocations or valuations of our services which could be material and could reduce our income and cash flow from our international subsidiaries. We currently have several pending tax assessments and audits in various jurisdictions including Germany, France and Italy. The agreement by which we acquired the Findus Group provides for certain indemnifications of tax liabilities which may arise in certain jurisdictions which we believe are sufficient to address these specific tax matters as far as they relate to the Findus Group. We have also established, where appropriate, reserves and provisions for tax assessments which we believe to be adequate to address potential tax liabilities. However, it is possible that the tax audits referred to above could result in the volatility of timings of cash tax payment and recoveries.


Our business is dependent on third-party suppliers and changes or difficulties in our relationships with our suppliers may harm our business and financial results.
We outsource some of our business functions to third-party suppliers, such as the processing of certain vegetables and other products, the manufacturing of packaging materials and distribution of our products. Our suppliers may fail to meet timelines or contractual obligations or provide us with sufficient products, which may adversely affect our business. Certain of our contracts with key suppliers, such as for the raw materials we use in our products, are short term, can be terminated by the supplier upon giving notice within a certain period and restrict us from using other suppliers. Also, a number of our supply contracts, including for fish and vegetables, may be terminated by the supplier upon a change in our ownership. Failure to appropriately structure or adequately manage our agreements with third parties may adversely affect our supply of products. We are also subject to credit risk with respect to our third-party suppliers. If any such suppliers become insolvent, an appointed trustee could potentially ignore the service contracts we have in place with such party, resulting in increased charges or the termination of the service contracts. We may not be able to replace a service provider within a reasonable period of time, on as favorable terms or without disruption to our operations. Any adverse changes to our relationships with third-party suppliers could have a material adverse effect on our image, brand and reputation, as well as on our business, financial condition and results of operations.
In addition, to the extent that our creditworthiness is impaired, or general economic conditions decline, certain of our key suppliers may demand onerous payment terms that could materially adversely affect our working capital position, or such suppliers may refuse to continue to supply to us. A number of our key suppliers have taken out trade credit insurance on our ability to pay them. To the extent that such trade credit insurance becomes unobtainable or more expensive due to market conditions, we may face adverse changes to payment terms by our key suppliers or they may refuse to continue to supply us.
The nature of the exit of the UK from the EU could adversely impact our business, results of operations and financial condition.
For the year ended December 31, 2017, 94% of our revenue was derived from the European Union as a whole and 21% was derived from the United Kingdom. On June 23, 2016 the UK electorate voted in favor of leaving the European Union (commonly referred to as “Brexit”), and on March 29, 2017 the UK government formally initiated the withdrawal process. The terms of any withdrawal are subject to a negotiation period that could last at least two years thus the referendum has created significant uncertainty about the future relationship between the United Kingdom and the European Union, and has given rise to calls for certain regions within the United Kingdom to preserve their place in the European Union by separating from the United Kingdom as well as for the governments of other EU Member States to consider withdrawal.
Brexit has resulted in volatility in the value of the Pound Sterling, and Euro currencies and we may experience adverse impacts on consumer demand and suppliers’ profitability in the UK and other markets, and general uncertainty in the overall business environment in which we operate. Depending on the terms of Brexit, the United Kingdom could also lose access to the single EU market resulting in an impact on the general and economic conditions in the United Kingdom. Changes may occur in regulations that we are required to comply with as well as amendments to treaties governing tax, duties, tariffs, etc. which could adversely impact our operations and require us to modify our financial and supply arrangements. Additionally, political instability in the European Union as a result of Brexit may result in a material negative effect on credit markets and foreign direct investments in the EU and UK. This deterioration in economic conditions could result in increased unemployment rates, increased short and long term interest rates, consumer and commercial bankruptcy filings, a decline in the strength of national and local economies, and other results that negatively impact household incomes. Further, a number of our employees in the UK are not UK citizens and, depending on the terms negotiated, may no longer have the right to work in the UK following the UK’s formal withdrawal from the EU. Any of these factors could have a material adverse effect on our business, financial condition and results of operations.


•The price of energy and other raw materials we consume in the manufacture, storage and distribution of our products isare subject to volatile market conditions.
The price of electricity and other energy resources required in the manufacture, storage and distribution of our products is subject to volatile market conditions. These market conditions are often affected by political and economic factors beyond our control, including, for instance, the energy policies of the countries in which we operate. For example, the German government’s decision to phase out nuclear power generation by 2022 could cause electricity prices and price volatility in Germany to increase. Any sustained increases in energy costs could have an adverse effect on the attractiveness of frozen food products for our customers and consumers and could affect our competitive position if our competitors’ energy costs do not increase at the same rate as ours. In addition, disruptions in the supply of energy resources could temporarily impair our ability to manufacture products for our customers. Such disruptions may also occur as a result of the loss of energy supply contracts or the inability to enter into new energy supply contracts on commercially attractive terms. Furthermore, natural catastrophes or similar events could affect the electricity grid. Any such disruptions, or increases in energy costs as a result of the aforementioned factors or otherwise, could have a material adverse effect on our business, financial condition and results of operations.
Any disruptions, failures or security breaches of our information technology systems could harm our business and reduce our profitability.
We rely on our information technology systems for communication among our suppliers, manufacturing plants, distribution functions, headquarters and customers. Our performance depends on the availability of accurate and timely data and other information from key software applications to aid day-to-day business and decision-making processes. We may be adversely affected if our controls designed to manage information technology operational risks fail to contain such risks. If we do not allocate and effectively manage the resources necessary to build and sustain the proper technology infrastructure and to maintain the related automated and manual control processes, we could be subject to adverse effects including billing and collection errors, business disruptions, in particular concerning our manufacturing and logistics functions, and security breaches. Any disruption caused by failings in our information technology infrastructure equipment or of communication networks, could delay or otherwise impact our day-to-day business and decision-making processes and negatively impact our performance. In addition, we are reliant on third parties to service parts of our IT infrastructure. Failure on their part to provide good and timely service may have an adverse impact on our information technology network. Furthermore, we do not control the facilities or operations of our suppliers. An interruption of operations at any of their or our facilities or any failure by them to deliver on their contractual commitments may have an adverse effect on our business, financial condition and results of operations.
In addition, if we are unable to prevent physical and electronic break-ins, cyber-attacks and other information security breaches, we may suffer financial and reputational damage, be subject to litigation or incur remediation costs or penalties because of the unauthorized disclosure of confidential information belonging to us or to our customers, suppliers or employees. The mishandling or inappropriate disclosure of non-public sensitive or protected information could lead to the loss of intellectual property, negatively impact planned corporate transactions or damage our reputation and brand image. Misuse, leakage or falsification of legally protected information could also result in a violation of data privacy laws and regulations and have a negative impact on our reputation, business, financial condition and results of operations.
•Our supply network and manufacturing and distribution facilities could be disrupted by climate-related factors and other factors beyond our control such as extreme weather, fire, terrorist activity and natural disasters.control.
Severe weather conditions and natural disasters, such as storms, floods, droughts, frosts, earthquakes or pestilence, may affect the supply of the raw materials that we use for the manufacturing of our products. For example, changing climate may cause flooding and drought in crop growing areas or changes in sea temperatures affecting marine biomass, fishing catch rates and overall fishing conditions. In addition, drought or floods may affect the feed supply for red meat and poultry, which in turn may affect the quality and availability of protein sources for our products. Competing food producers can be affected differently by weather conditions and natural disasters depending on the location of their supply sources. If our supplies of raw materials are reduced, we may not be able to find adequate supplemental supply sources, if at all, on favorable terms, which could have a material adverse effect on•Seasonality impacts our business, financial condition and results of operation.our revenue and working capital levels may vary quarter to quarter.


In addition, our manufacturing facilities may be subject to damage or disruption resulting from fire terrorist activity, natural disasters or other causes. For example, our Lowestoft and Bremerhaven manufacturing facilities are situated in regions which have historically been prone to flooding. Extensive damage to any of our nine major manufacturing facilities as a result of any of the foregoing reasons, could, to the extent that lost production could not be compensated for by unaffected facilities, severely affect our ability to conduct our business operations and, as a result, adversely affect our business, financial condition and results of operations.
Furthermore, as we lease parts of our Boulogne, Bremerhaven, Lowestoft, Tonsberg and Valladolid sites, the use of these properties is subject to certain terms and conditions, the breach of which could affect our ability to continue use of these properties which in turn may disrupt our operations and may materially adversely affect our results of operations.
•We may be unable to realize the expected benefits of actions taken to align our resources, operate more efficiently and control costs.
When required we take actions, such as workforce reductions, plant closures and consolidations, and other cost reduction initiatives, to align our resources with our growth strategies, operate more efficiently and control costs. As these plans and actions are complex, unforeseen factors could result in expected savings and benefits to be delayed or not realized to the full extent planned, could negatively impact labor relations, including causing work stoppages, and could lead to disruptions in our business and operations and higher short-term costs related to severance and related capital expenditures. In 2016, we announced the closure of our factory and pea processing operations in Bjuv, Sweden, and operations ceased in the first half of 2017 with production transfered to other factories in the Group’s network. In January 2018, we sold the factory building and parts of the premises. •We may be unablesubject to realize the expected benefits of these actions which could potentially adversely affect our profitability and operations.
Significantsignificant disruption in our workforce or the workforce of our suppliers could adversely affect our business, financial conditionsuppliers.
•Labor shortages and results of operations.
As of December 31, 2017, we employed approximately 3,875 employees, of which approximately 1,267 were located in Germany, 801 were located in the United Kingdom, 335 were located in France, 451 were located in Italy, 536 were located in Sweden/Norway and 485 employees in other locations. Approximately 67% of our employees work in our manufacturing operations. We have in the past, and may in the future, experience labor disputes and work stoppages at one or more of our manufacturing sites due to localized strikes or strikes in the larger retail food industry sector. We have also been involved in negotiations on collective bargaining agreements. A labor stoppage or other interruption at one of our nine manufacturing sites would impact our ability to supply our customers and could have a pronounced effect on our operations. Further, a number of our employees in the UK are not UK citizens and, depending on the terms negotiated, may no longer have the right to work in the UK following the UK’s formal withdrawal from the EU. Future labor disturbance or work stoppage at any of our or our suppliers’ facilities in Germany, the United Kingdom, Italy or elsewhere may have an adverse effect on such facility’s operations and, potentially, on our business, financial condition and results of operations.
Higherhigher labor costs could adversely affect our business and financial results.
We compete with other producers for good and dependable employees. The supply of such employees is limited and competition to hire and retain them may result in higher labor costs. Furthermore, a substantial majority of our employees are subject to national minimum wage requirements. If legislation is enacted in these countries that has the effect of raising the national minimum wage requirements, requires additional mandatory employee benefits or affects our ability to hire or dismiss employees, we could face substantially higher labor costs. In the UK, the National Minimum Wage and National Living Wage are set to increase from April 2018. High labor costs could adversely affect our profitability if we are not able to pass them on to our customers.
•We are dependent upon key executives and highly qualified managers and we cannot assure their retention.
Our success depends, in part, upon the continued services of key members of our management. Our executives’ and managers’ knowledge of the market, our business and our company represents a key strength of our business, which cannot be easily replicated. The success of our business strategy and our future growth also depend on our ability to attract, train, retain and motivate skilled managerial, sales, administration, development and operating personnel.


There can be no assurance that our existing personnel will be adequate or qualified to carry out our strategy, or that we will•We may not be able to hireachieve our sustainability targets to the extent we expect.
Risks Related to Our Acquisition Strategy
•We may not be able to consummate future acquisitions or retain experienced, qualified employeessuccessfully integrate acquisitions into our business.
•We may be subject to carry out our strategy. The loss of oneantitrust regulations with respect to future acquisition opportunities.
•We may face significant competition for acquisition opportunities.
•Any due diligence by us in connection with agreed acquisitions or more of our key management or operating personnel, or the failure to attract and retain additional key personnel, could have a material adverse effect on our business, financial condition and results of operations.
Costspotential future acquisitions may not reveal all relevant considerations or liabilities relating to compliance with applicable directives, regulations and laws could have a material adverse effect on our business, financial condition and results of operations.
As a producer of food products for human consumption, we are subject to extensive regulation in the United Kingdom, Germany, France, Italy, Sweden, Norway and other countries in which we operate, as well as the European Union, that governs production, composition, manufacturing, storage, transport, advertising, packaging, health, quality, labeling, safety and distribution standards. In addition, national regulations that have implemented European directives applicable to frozen products establish highly technical requirements regarding labeling, manufacturing, transportation and storage of frozen food products. For example, regulations of the European Parliament and Council published in October 2011 changed rules relatingtarget business.
7

Risks Related to the presentation of nutritional information on packaging and other rules on labeling. It is unclear how this will be impacted under Brexit but there may be changes and further regulations that the company has to adhere to. Local governmental authorities also set out health and safety related conditions and restrictions. Any failure to comply with applicable laws and regulations could subject us to civil remedies, including fines, injunctions, product recalls or asset seizures, as well as potential criminal sanctions, any of which could have a material adverse effect on our business, financial condition and results of operations.Regulations
In addition, our facilities and our suppliers’ facilities are subject to licensing, reporting requirements and official quality controls by numerous governmental authorities. These governmental authorities include European, national and local health, environmental, labor relations, sanitation, building, zoning, and fire and safety departments. Difficulties in obtaining or failure to obtain the necessary licenses or approval could delay or prevent the development, expansion or operation of a given production or warehouse facility. Any changes in those regulations may require us to implement new quality controls and possibly invest in new equipment, which could delay the development of new products and increase our operating costs.
All of our products must comply with strict national and international hygiene regulations. Our facilities and our suppliers’ facilities are subject to regular inspection by authorities for compliance with hygiene regulations applicable to the sale, storage and manufacturing of foodstuffs and the traceability of genetically modified organisms, meats and other raw materials. Additionally, in certain jurisdictions, food business operators, including those in the food storage, processing and distribution sectors, are required to trace all food, animal feed, and food-producing animals under their control using registration systems that track the source of the products through the supply chain. Despite the precautions we undertake, should any non-compliance with such regulations be discovered during an inspection or otherwise, authorities may temporarily shut down any of our facilities and levy a fine for such non-compliance, which could have a material adverse effect on our business, financial condition and results of operations.
•We could incur material costs to addressfor violations of, or liabilities under health, safetyapplicable directives, regulations and environmental regulations.laws.
Our facilities and operations are subject to numerous health, safety and environmental regulations, including local and national laws, and European directives and regulations governing, among other things, water supply and use, water discharges, air emissions, chemical safety, solid and hazardous waste management and disposal, clean-up of contamination, energy use, noise pollution, and workplace health and safety. Health, safety and environmental legislation in Europe and elsewhere have generally become more comprehensive and restrictive and more rigid over time and enforcement has become more stringent. Failure to comply with applicable requirements, or the terms of required permits, can result in penalties or fines, clean-up costs, third party property damage and personal injury claims, which could have a material adverse effect on our brand, business, financial condition and results of operations. In addition, if health, safety and environmental laws and regulations in the United Kingdom, Germany, France, Italy, Sweden, Norway and the other countries in which we operate or from which we source raw materials and ingredients become more stringent in the future, the extent and timing of investments required to maintain compliance may exceed our budgets or estimates and may limit the availability of funding for other investments.
Furthermore, under some environmental laws, we could be liable for costs incurred in investigating or remediating contamination at properties we own or occupy, even if the contamination was caused by a party unrelated to us or was not caused by us, and even if the activity which caused the contamination was legal at the time it occurred. The discovery of previously unknown contamination, or the imposition of new or more burdensome obligations to investigate or remediate contamination at our properties or at third-party sites, could result in substantial unanticipated costs which could have a material adverse effect on our business, financial condition and results of operations.


In certain jurisdictions, we are also subject to legislation designed to significantly reduce industrial energy use, carbon dioxide emissions and the emission of ozone depleting compounds more generally. If we fail to meet applicable standards for energy use reduction or are unable to decrease, and in some cases eliminate, certain emissions within the applicable period required by relevant laws and regulations, we could be subject to significant penalties or fines and temporary or long-term disruptions to production at our facilities, all of which could have a material adverse effect on our business, financial condition and results of operations.
•We are subject to complying with a variety of regulatory schemes; failure to comply with applicable rulesschemes.
•Changes in European privacy and data protection regulations could adversely affect our business, results of operations and reputation.
Our operations are subject to a variety of regulatory schemes which requireexpose us to implement processes, procedurescompliance risks and controlscosts.
Risks Related to provide reasonable assurance that we are operating in compliance with applicable regulations, including the UK Bribery Act, the Modern Slavery Act 2015, the Foreign Corrupt Practices Act of 1977, the Trade Sanctions and Export Controls and the EU General Data Protection Regulation. Failure to comply (or any alleged failure to comply) with the regulations referenced above or any other regulations could result in civil and criminal, monetary and non-monetary penalties, and any such failure or alleged failure (or becoming subject to a regulatory enforcement investigation) could also damage our reputation, disrupt our business, result in loss of customers and cause us to incur significant legal and investigatory fees. In addition, our business, including our ability to operate and continue to expand internationally, could be adversely affected if local and foreign laws or regulations are adopted, interpreted, or implemented in a manner that is inconsistent with our current business practices and that require rapid changes to these practices or our products, services, policies and procedures.  If we are not able to adapt our business practices or strategies to changes in laws or regulations, it could subject us to liability, increased costs and reduced product demand. Additionally, the costs of compliance with laws and regulations may increase in the future as a result of changes in interpretation.  Any failure by us to comply with applicable laws and regulations may subject us to significant liabilities and could adversely affect our business, results of operations and reputation.Financial Management
A failure in our cold chain could lead to unsafe food conditions and increased costs.
“Cold chain” requirements setting out the temperatures at which our ingredients and products are stored are established both by statute and by us to help guarantee the safety of our food products. Our cold chain is maintained from the moment the ingredients arrive at, or are frozen by, our suppliers, through our manufacturing and transportation of products and ultimately to the time of sale in retail stores. These standards ensure the quality, freshness and safety of our products. A failure in the cold chain could lead to food contamination, risks to the health of consumers, fines and damage to our brands and reputation, each of which could have an adverse effect on our business, financial condition and results of operations.
Seasonality impacts our business, and our revenue and working capital levels may vary quarter to quarter.
Our sales and working capital levels have historically been affected to a limited extent by seasonality. In general, sales volumes for frozen food are slightly higher in cold or winter months, partly because there are fewer fresh alternatives available for vegetables and because our customers typically allocate more freezer space to the ice cream segment in summer or hotter months. In addition, variable production costs, including costs for seasonal staff, and working capital requirements associated with the keeping of inventories, vary depending on the harvesting and buying periods of seasonal raw materials, in particular vegetable crops. For example, stock (and therefore net working capital) levels typically peak in August to September just after the pea harvest. If seasonal fluctuations are greater than anticipated, our business, financial condition and results of operations could be adversely affected.
•We have risks related to our indebtedness, including our ability to withstand adverse business conditions and to meet our debt service obligations.
Our ability to make payments on and to refinance our indebtedness, and to fund our operations, working capital and capital expenditures, depends on our ability to generate cash. To a certain extent, our cash flow is subject to general economic, industry, financial, competitive, operating, legislative, regulatory and other factors, many of which are beyond our control.
We cannot assure you that our business will generate sufficient cash flow from operations or that future sources of cash will be available to us in an amount sufficient to enable us to pay amounts due on our indebtedness or to fund our other liquidity needs.


Additionally, if we incur additional indebtedness in connection with any future acquisitions or development projects or for any other purpose, our debt service obligations could increase. We may need to refinance all or a portion of our indebtedness before maturity. Our ability to refinance our indebtedness or obtain additional financing will depend on, among other things:
• our financial condition and market conditions at the time;
• restrictions in the agreements governing our indebtedness;
• general economic and capital market conditions;
• the availability of credit from banks or other lenders;
• investor confidence in us; and
• our results of operations.
In addition, a significant part of our indebtedness includes provisions with respect to maintaining and complying with certain financial and operational covenants. Our ability to comply with these covenants may be affected by events beyond our control. A breach of one or more of these covenants could result in an event of default and may give rise to an acceleration of the debt. In the longer term, such breach of covenants could have a material adverse effect on our operations and cash flows.
Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligationsrisk.
•Our indebtedness is subject to increase significantly.changes in interest reference rates.
An increase in market interest rates would increase our interest expense arising on our existing and future floating rate indebtedness. Pursuant to the terms of our Senior Facilities Agreement, the interest rate that we pay on indebtedness incurred under our term loan facilities or revolving credit facility varies based on a fixed margin over a base rate which references the LIBOR or EURIBOR rates. As a result, we are exposed to interest rate risk. If interest rates increase, our debt service obligations on the variable rate indebtedness will increase even though the amount borrowed remained the same, and our net income and cash flows, including cash available for servicing our indebtedness, will correspondingly decrease. In the future, we may enter into interest rate swaps that involve the exchange of floating for fixed rate interest payments in order to reduce interest rate volatility. However, we may not maintain interest rate swaps with respect to all of our variable rate indebtedness, and any swaps we enter into may not fully mitigate our interest rate risk.
•We are exposed to exchange rate risks and such rates may adversely affect our results of operations.risks.
We are exposed to exchange rate risk. Our reporting currency is the Euro and yet a significant proportion of our sales and EBITDA are in Pound Sterling through our United Kingdom based business and Norwegian Krone and Swedish Krona through our Norwegian and Swedish based businesses. We are exposed to foreign exchange impacts as we convert the Pound Sterling results of our United Kingdom business and the Norwegian Krone and Swedish Krona results of our Norwegian and Swedish business into our reporting currency of Euro. We have swapped a portion of our USD term loan to GBP using cross currency interest rate swaps which act as a natural hedge for our United Kingdom business. We are also exposed to exchange rate risk due to the fact that a significant portion of our raw material purchases, mainly fish, are denominated in U.S. Dollars and our Swedish business also has a significant exposure on purchases denominated in Euro. Our policy is to reduce this risk by using foreign exchange forward contracts with a maturity of less than one year which are designated as cash flow hedges. However, such hedging arrangements may not fully protect us against currency fluctuations. Fluctuations and sustained strengthening of the U.S. Dollar exchange rate against our operating currencies may materially adversely affect our business, financial condition and results of operations.
•Changes to our payment terms with both customers and suppliers may materially adversely affect our operating cash flows.
We•Dividend payments and purchases made pursuant to announced share repurchase programs may experience significant pressure from bothhave an impact on our competitorscash flows and our key suppliersability to reduce the number of days ofmeet our accounts payable. At the same time, we may experience pressure from our customers to extend the number of days before paying our accounts receivable. Any failure to manage our accounts payable and accounts receivable may have a material adverse effect on our business, financial condition and results of operations.debt service obligations.


Changes in accounting standards and subjective assumptions, estimates and judgments by management related to complex accounting matters could significantly affect our financial results.
Generally accepted accounting principles and related accounting pronouncements, implementation guidelines and interpretations with regard to a wide range of matters that are relevant to our business, including but not limited to revenue recognition, leases, estimating valuation allowances and accrued liabilities (including allowances for returns, doubtful accounts and obsolete and damaged inventory), accounting for income taxes, valuation of long-lived and intangible assets and goodwill, stock-based compensation and loss contingencies, are highly complex and involve many subjective assumptions, estimates and judgments by our management. Changes in these rules or their interpretation or changes in underlying assumptions, estimates or judgments by our management could significantly change our reported or expected financial performance, and could have a material adverse effect on our business. As an example, the impact of the adoption of IFRS 16 ‘Leases’ may have a material impact on the Statements of Financial Position and Profit or Loss. Management is assessing this and other new accounting pronouncements and its impact on the Company prior to their adoption dates.
We may incur liabilities that are not covered by insurance.
While we seek to maintain appropriate levels of insurance, not all claims are insurable and we may experience major incidents of a nature that are not covered by insurance. Our insurance policies cover, among other things, employee-related accidents and injuries, property damage and liability deriving from our activities. In particular, our Lowestoft and Bremerhaven manufacturing facilities are situated in regions that have historically been affected by flooding. We may not be able to obtain flood insurance on reasonable terms or at all with respect to those facilities. We maintain an amount of insurance protection that we believe is adequate, but there can be no assurance that such insurance will continue to be available on acceptable terms or that our insurance coverage will be sufficient or effective under all circumstances and against all liabilities to which we may be subject. We could, for example, be subject to substantial claims for damages upon the occurrence of several events within one calendar year. In addition, our insurance costs may increase over time in response to any negative development in our claims history or due to material price increases in the insurance market in general.
•An impairment of the carrying value of goodwill or other intangible assets could negatively affect our consolidated operating results and net worth.
Goodwill represents amounts arising from acquisitions•We are exposed to risks in connection with our treasury and is the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired. Intangible assets can include computer software, brands, customer relationships and other acquired intangibles as of the acquisition date. Goodwill and other intangibles expected to contribute indefinitely to our cash flows are not amortized, but must be evaluated by management at least annually for impairment. If carrying value exceeds its recoverable amount, the intangible is considered impaired and is reduced to fair value via a charge to earnings. Factors which could result in an impairment include, but are not limited to: (i) reduced demand for our products; (ii) higher commodity prices; (iii) lower prices for our products or increased marketing as a result of increased competition; and (iv) significant disruptions to our operations as a result of both internal and external events. Should the value of one or more of the acquired intangibles become impaired, our consolidated profit or loss and net assets may be materially adversely affected. As of December 31, 2017, the carrying value of intangible assets totaled €3,470.0 million, of which €1,745.6 million was goodwill and €1,724.4 million represented brands, computer software, customer relationships and other acquired intangibles compared to total assets of €4,601.7 million.activities.
•We face risks associated with certain pension obligations.
•We are a holding company whose principal source of operating cash is the income received from our subsidiaries.
•The Company has a mixture of partially funded and unfunded post-employment defined benefit plans in Germany, Sweden and Austria as well as defined benefit indemnity arrangements in Italy and France. DeteriorationFounders and/or the Founder Entities may in the value or lower than expected returns on investments may lead to an increase in our obligation to make contributions to these plans.future enter into related party transactions with us.
The obligations that arise from these plansGeneral Risk Factors
•We are calculated using actuarial valuations which are based on assumptions linkedsubject to the performancerisk of disruptions, failures or security breaches of our information technology systems.
•Changes in accounting standards and subjective assumptions, estimates and judgments by management related to accounting matters could significantly affect our financial markets, interest rates and legislation which changes over time. Adverse changes to these assumptions will impact the obligations recognized and would lead to higher cash payments in the long term.results.
Our obligation to make contributions to the pension plans could reduce the cash available for operational and other corporate uses and•We may have a materially adverse impact on our operations, financial condition and liquidity.incur liabilities that are not covered by insurance.


•If we fail to or are unable to implement and maintain effective internal controls over financial reporting, the accuracy and timeliness of our financial reporting may be adversely affected.
We are subject to reporting obligations under U.S. securities laws. The SEC, as required under Section 404 of the Sarbanes-Oxley Act of 2002, has adopted rules requiring every public company to include a report of management on the effectiveness of such company's internal control over financial reporting in its annual report. In addition, an independent registered public accounting firm must issue an attestation report on the effectiveness of the company's internal control over financial reporting.
We recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and our management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. If we fail to maintain effective internal control over financial reporting in the future, we and our independent registered public accounting firm may not be able to conclude that we have effective internal control over financial reporting at a reasonable assurance level. This could in turn result in the loss of investor confidence in the reliability of our financial statements. Furthermore, we have incurred and anticipate that we will continue to incur considerable costs and use significant management time and other resources in an effort to comply with Section 404 and other requirements of the Sarbanes-Oxley Act. If we are not able to continue to meet the requirements of Section 404 in a timely manner or with adequate compliance, we might be subject to sanctions or investigation by the SEC, the NYSE or other regulatory authorities. Any such action could adversely affect the accuracy and timeliness of our financial reporting.
Risks Related to Our Structure and Acquisition Strategy
We may not be able to consummate future acquisitions or successfully integrate acquisitions into our business, which could result in unanticipated expenses and losses.
Our strategy is largely based on our ability to grow through acquisitions of additional businesses to build an integrated group. Consummating acquisitions of related businesses, or our failure to integrate such businesses successfully into our existing businesses, could result in unanticipated expenses and losses. Furthermore, we may not be able to realize any of the anticipated benefits from acquisitions, including the Findus Acquisition and the Green Isle Foods Ltd. acquisition, if consummated.
We anticipate that any future acquisitions we may pursue as part of our business strategy may be partially financed through additional debt or equity. If new debt is added to current debt levels, or if we incur other liabilities, including contingent liabilities, in connection with an acquisition, the debt or liabilities could impose additional constraints and requirements on our business and operations, which could materially adversely affect our financial condition and results of operation. In addition, to the extent our ordinary shares are used for all or a portion of the consideration to be paid for future acquisitions, dilution may be experienced by existing shareholders.
In connection with our completed and future acquisitions, the process of integrating acquired operations into our existing group operations may result in unforeseen operating difficulties and may require significant financial resources that would otherwise be available for the ongoing development or expansion of existing operations. Some of the risks associated with acquisitions include:
unexpected losses of key employees or customers of the acquired company;
conforming the acquired company’s standards, processes, procedures and controls with our operations;
coordinating new product and process development;
hiring additional management and other critical personnel;
negotiating with labor unions; and
increasing the scope, geographic diversity and complexity of our current operations.
We may encounter unforeseen obstacles or costs in the integration of businesses that we may acquire. In addition, general economic and market conditions or other factors outside of our control could make our operating strategies difficult or impossible to implement. Any failure to implement these operational improvements successfully and/or the failure of these operational improvements to deliver the anticipated benefits could have a material adverse effect on our results of operations and financial condition.


We may be subject to antitrust regulations with respect to future acquisition opportunities.
Many jurisdictions in which we operate have antitrust regulations which involve governmental filings for certain acquisitions, impose waiting periods and require approvals by government regulators. Governmental authorities may seek to challenge potential acquisitions or impose conditions, terms, obligations or restrictions that may delay completion of the acquisition or materially reduce the anticipated benefits (financial or otherwise). Our inability to consummate potential future acquisitions or to receive the full benefits of such acquisitions because of antitrust regulations could limit our ability to execute on our acquisition strategy which could have a material adverse effect on our financial condition and results of operations.
We may face significant competition for acquisition opportunities.
There may be significant competition in some or all of the acquisition opportunities that we may explore. Such competition may for example come from strategic buyers, sovereign wealth funds, special purpose acquisition companies and public and private investment funds, many of which are well established and have extensive experience in identifying and completing acquisitions. A number of these competitors may possess greater technical, financial, human and other resources than us. We cannot assure investors that we will be successful against such competition. Such competition may cause us to be unsuccessful in executing any acquisition or may result in a successful acquisition being made at a significantly higher price than would otherwise have been the case.
Any due diligence by us in connection with potential future acquisition may not reveal all relevant considerations or liabilities of the target business, which could have a material adverse effect on our financial condition or results of operations.
We intend to conduct such due diligence as we deem reasonably practicable and appropriate based on the facts and circumstances applicable to any potential acquisition. The objective of the due diligence process will be to identify material issues which may affect the decision to proceed with any one particular acquisition target or the consideration payable for an acquisition. We also intend to use information revealed during the due diligence process to formulate our business and operational planning for, and our valuation of, any target company or business. While conducting due diligence and assessing a potential acquisition, we may rely on publicly available information, if any, information provided by the relevant target company to the extent such company is willing or able to provide such information and, in some circumstances, third party investigations.
There can be no assurance that the due diligence undertaken with respect to an acquisition will reveal all relevant facts that may be necessary to evaluate such acquisition including the determination of the price we may pay for an acquisition target or to formulate a business strategy. Furthermore, the information provided during due diligence may be incomplete, inadequate or inaccurate. As part of the due diligence process, we will also make subjective judgments regarding the results of operations, financial condition and prospects of a potential target. If the due diligence investigation fails to correctly identify material issues and liabilities that may be present in a target company or business, or if we consider such material risks to be commercially acceptable relative to the opportunity, and we proceed with an acquisition, we may subsequently incur substantial impairment charges or other losses.
In addition, following an acquisition, including the Iglo Acquisition and the Findus Acquisition, we may be subject to significant, previously undisclosed liabilities of the acquired business that were not identified during due diligence and which could contribute to poor operational performance, undermine any attempt to restructure the acquired company or business in line with our business plan and have a material adverse effect on our financial condition and results of operations.
We are a holding company whose principal source of operating cash is the income received from our subsidiaries.
We are dependent on the income generated by our subsidiaries in order to make distributions and dividends on the ordinary shares. The amount of distributions and dividends, if any, which may be paid to us from any operating subsidiary will depend on many factors, including such subsidiary’s results of operations and financial condition, limits on dividends under applicable law, its constitutional documents, documents governing any indebtedness, and other factors which may be outside our control. If our operating subsidiaries do not generate sufficient cash flow, we may be unable to make distributions and dividends on the ordinary shares.


The Founders and/or the Founder Entities may in the future enter into related party transactions with us, which may give rise to conflicts of interest between us and some or all of the Founders and/or the Directors.
Our founders, Martin Franklin and Noam Gottesman (the “Founders”) and/or one or more of their affiliates, including Mariposa Acquisition II, LLC and TOMS Acquisition I LLC (the “Founder Entities”) may in the future enter into agreements with us that are not currently under contemplation. While we have implemented procedures to ensure we will not enter into any related party transaction without the approval of our Audit Committee, it is possible that the entering into of such an agreement might raise conflicts of interest between us and some or all of the Founders and/or the directors.
Risks Related to our Ordinary Shares
We have various•Outstanding equity instruments outstanding that wouldaward grants under our LTIP could require us to issue additional ordinary shares. Therefore, you may experience significant dilution of your ownership interests and the future issuance of additional ordinary shares, or the anticipation of such issuances, could have an adverse effect on our share price.
We currently have various equity instruments outstanding that would require us to issue additional ordinary shares for no or a fixed amount of additional consideration. Specifically, as of March 14, 2018, we had outstanding the following:
1,500,000 Founder Preferred Shares held by the Founder Entities, which are controlled by the Founders. The preferred shares held by the Founder Entities (the “Founder Preferred Shares”) will automatically convert into ordinary shares on a one for one basis (subject to adjustment in accordance with our Memorandum and Articles of Association) on the last day of the seventh full financial year following completion of the Iglo Acquisition and some or all of them may be converted following written request from the holder;
125,000 options held by certain current and former of our Directors which are exercisable to purchase ordinary shares, on a one-for-one basis, at any time at the option of the holder; and
4,927,000 equity awards issued under the LTIP, which may be converted into ordinary shares subject, in most cases, to meeting certain performance conditions.
We also have 12,472,744 ordinary shares currently available for issuance under our LTIP.
Holders of the Founder Preferred Shares are entitled to receive annual dividend amounts subject to certain performance conditions (the “Founder Preferred Shares Annual Dividend Amount”). The payment of the Founder Preferred Shares Annual Dividend Amount became mandatory after January 1, 2015 if certain share price performance conditions are met for any given year. At our discretion, we may settle the Founder Preferred Shares Annual Dividend Amount by issuing shares or by cash payment, but we intend to equity settle. On December 29, 2017, we approved a 2017 Founder Preferred Share Dividend in an aggregate of 8,705,890 ordinary shares. The dividend price used to calculate the 2017 Founder Preferred Shares Annual Dividend Amount was $16.6516 (calculated based upon the volume weighted average price for the last ten trading days of 2017) and the Ordinary Shares were issued on January 2, 2018. In subsequent years, the Annual Dividend Amount will be calculated based upon the volume weighted average share price for the last ten trading days of the financial year and the resulting appreciated average share price compared to the highest price previously used in calculating the Annual Dividend Amount. The issuance of ordinary shares pursuant to the terms of the Founder Preferred Shares will reduce (by the applicable proportion) the percentage shareholdings of those shareholders holding ordinary shares prior to such issuance which may reduce your net return on your investment in our ordinary shares.
•Our ordinary share price may be volatile, and as a result, you could lose a significant portion or all of your investment.volatile.
The market price of the ordinary shares on the NYSE may fluctuate as a result of several factors, including the following:
variations in our quarterly operating results;
volatility in our industry, the industries of our customers and suppliers and the global securities markets;
risks relating to our business and industry, including those discussed above;
strategic actions by us or our competitors;


reputational damage from unsafe or poor quality food products;
actual or expected changes in our growth rates or our competitors’ growth rates;
investor perception of us, the industry in which we operate, the investment opportunity associated with the ordinary shares and our future performance;
addition or departure of our executive officers;
changes in financial estimates or publication of research reports by analysts regarding our ordinary shares, other comparable companies or our industry generally;
trading volume of our ordinary shares;
future sales of our ordinary shares by us or our shareholders;
domestic and international economic, legal and regulatory factors unrelated to our performance; or
the release or expiration of lock-up or other transfer restrictions on our outstanding ordinary shares.
Furthermore, the stock markets often experience significant price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political and market conditions such as recessions or interest rate changes may cause the market price of ordinary shares to decline.
If securities•Securities or industry analysts domay not publish or may cease publishing research reports about us, if they adversely change their recommendations regarding our ordinary shares or if our operating results do not meet their expectations, the price of our ordinary shares could decline.us.
The trading market for our ordinary shares will be influenced by the research and reports that industry or securities analysts may publish about us, our business, our market or our competitors. Securities and industry analysts currently publish limited research on us. If there is limited or no securities or industry analyst coverage of our company, the market price and trading volume of our ordinary shares would likely be negatively impacted. Moreover, if any of the analysts who may cover us downgrade our ordinary shares, provide more favorable relative recommendations about our competitors or if our operating results or prospects do not meet their expectations, the market price of our ordinary shares could decline. If any of the analysts who may cover us were to cease coverage or fail to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause our share price or trading volume to decline.
•As a foreign private issuer, we are subject to different U.S. securities laws and NYSE governance standards than domestic U.S. issuers. This may afford less protection to holders of our ordinary shares, and you may not receive corporate and company information and disclosure that you are accustomed to receiving or in a manner in which you are accustomed to receiving it.standards.
As a foreign private issuer, the rules governing the information that we disclose differ from those governing U.S. corporations pursuant to the Exchange Act. Although we report quarterly financial results and certain material events, we are not required to file quarterly reports on Form 10-Q or provide current reports on Form 8-K disclosing significant events within four days of their occurrence and our quarterly or current reports may contain less information than required for domestic issuers. In addition, we are exempt from the SEC’s proxy rules, and proxy statements that we distribute will not be subject to review by the SEC. Our exemption from Section 16 rules regarding sales of ordinary shares by insiders means that you will have less data in this regard than shareholders of U.S. companies that are subject to the Exchange Act. As a result, you may not have all the data that you are accustomed to having when making investment decisions with respect to U.S. public companies.
As a foreign private issuer, we are exempt from complying with certain corporate governance requirements of the NYSE applicable to a U.S. issuer, including the requirement that a majority of our board of directors consist of independent directors. As the corporate governance standards applicable to us are different than those applicable to domestic U.S. issuers, you may not have the same protections afforded under U.S. law and the NYSE rules as shareholders of companies that do not have such exemptions. See Item 16G: Corporate Governance.


•We may lose our foreign private issuer status in the future, which could result in significant additional costs and expenses.future.
We could cease to be a foreign private issuer if a majority of our outstanding voting securities are directly or indirectly held of record by U.S. residents and we fail to meet additional requirements necessary to avoid loss of foreign private issuer status. •The regulatory and compliance costs to us under U.S. securities laws as a U.S. domestic issuer may be significantly higher than costs we incur as a foreign private issuer, which could have a material adverse effect on our business and financial results.
As the rights of shareholders under British Virgin Islands law differ from those under United States law, you may have fewer protections as a shareholder.law.
Our corporate affairs are governed by our Memorandum and Articles of Association, the BVI Business Companies Act, 2004 (as amended, the “BVI Act”) and the common law of the British Virgin Islands. The rights of shareholders to take legal action against our directors, actions by minority shareholders and the fiduciary responsibilities of our directors under British Virgin Islands law are to a large extent governed by the common law of the British Virgin Islands and by the BVI Act. The common law of the British Virgin Islands is derived in part from comparatively limited judicial precedent in the British Virgin Islands as well as from English common law, which has persuasive, but not binding, authority on a court in the British Virgin Islands. The rights of our shareholders and the fiduciary responsibilities of our directors under British Virgin Islands law are not as clearly established as they would be under statutes or judicial precedents in some jurisdictions in the United States. In particular, the British Virgin Islands has a less developed body of securities laws as compared to the United States, and some states (such as Delaware) have more fully developed and judicially interpreted bodies of corporate law. As a result of the foregoing, holders of our ordinary shares may have more difficulty in protecting their interests through actions against our management, directors or major shareholders than they would as shareholders of a U.S. company. See Item 16G: Corporate Governance.
•The laws of the British Virgin Islands provide limited protection for minority shareholders, so minority shareholders will have limited or no recourse if they are dissatisfied with the conduct of our affairs.shareholders.
Under the laws of the British Virgin Islands, there is limited statutory law for the protection of minority shareholders other than the provisions of the BVI Act dealing with shareholder remedies (as summarized under Item 16G: Corporate Governance). The principal protection under statutory law is that shareholders may bring an action to enforce the constituent documents of the company and are entitled to have the affairs of the company conducted in accordance with the BVI Act and the memorandum and articles of association of the company. As such, if those who control the company have persistently disregarded the requirements of the BVI Act or the provisions of the company’s memorandum and articles of association, then the courts will likely grant relief. Generally, the areas in which the courts will intervene are the following: (i) an act complained of which is outside the scope of the authorized business or is illegal or not capable of ratification by the majority; (ii) acts that constitute fraud on the minority where the wrongdoers control the company; (iii) acts that infringe on the personal rights of the shareholders, such as the right to vote; and (iv) acts where the company has not complied with provisions requiring approval of a special or extraordinary majority of shareholders, which are more limited than the rights afforded minority shareholders under the laws of many states in the United States.
To the extent allowed by law, the rights and obligations among or between us, any of our current or former directors, officers and employees and any current or former shareholder will be governed exclusively by the laws of the British Virgin Islands and subject to the jurisdiction of the British Virgin Islands courts, unless those rights or obligations do not relate to or arise out of their capacities as such. Although there is doubt as to whether United States courts would enforce these provisions in an action brought in the United States under United States securities laws, these provisions could make judgments obtained outside of the British Virgin Islands more difficult to enforce against our assets in the British Virgin Islands or jurisdictions that would apply British Virgin Islands law.


•British Virgin Islands companies may not be able to initiate shareholder derivative actions, thereby depriving shareholders of one avenue to protect their interests.actions.
British Virgin Islands companies may not have standing to initiate a shareholder derivative action in a federal court of the United States. The circumstances in which any such an action may be brought, and the procedures and defenses that may be available in respect of any such action, may result in the rights of shareholders of a British Virgin Islands company being more limited than those of shareholders of a company organized in the United States. Accordingly, shareholders may have fewer alternatives available to them if they believe that corporate wrongdoing has occurred. The British Virgin Islands courts are also unlikely to recognize or enforce judgments of courts in the United States based on certain liability provisions of United States securities law or to impose liabilities, in original actions brought in the British Virgin Islands, based on certain liability provisions of the United States securities laws that are penal in nature. There is no statutory recognition in the British Virgin Islands of judgments obtained in the United States, although the courts of the British Virgin Islands will generally recognize and enforce the non-penal judgment of a foreign court of competent jurisdiction without retrial on the merits. This means that even if shareholders were to sue us successfully, they may not be able to recover anything to make up for the losses suffered.
Dividend payments on our ordinary shares are not expected.
We do not currently intend to pay dividends on our ordinary shares. We intend only to pay such dividends at such times, if any, and in such amounts, if any, as the board determines appropriate and in accordance with applicable law, and then only if we receive dividends on shares held by us in our operating subsidiaries. Therefore, we cannot give any assurance that we will be able to pay or will pay dividends going forward or as to the amount of such dividends, if any.
•Shareholders may experience a dilution of their percentage ownership if we make non-pre-emptive offers of ordinary shares in the future.ownership.
We have opted-out of statutory pre-emptive rights pursuant to the terms of our Memorandum and Articles of Association. No pre-emption rights therefore exist in respect of future issuance of ordinary shares whether or not for cash. Should we decide to offer additional ordinary shares on a non-pre-emptive basis in the future, this could dilute the interests of shareholders and/or have an adverse effect on the market price of the ordinary shares.
Risks Related to Taxation
•Changes in tax law and practice may reduce any net returns for shareholders.
•Failure to maintain our tax status may negatively affect our financial and operating results and shareholders.
•Disputes with tax authorities may give rise to unforeseen adjustments.
•If any dividend is declared in the future and paid in a foreign currency, U.S. holders may be taxed on a larger amount in U.S. Dollars than the U.S. Dollar amount actually received.
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ii. Details of our Risk Factors
Risks Related to Our Business and Industry
We operate in a highly competitive market and our failure to compete effectively could adversely affect our results of operations.
The market for frozen food is highly competitive, and further consolidation in the industry would likely increase competition. Our competitors include retailers who promote private label products and well-established branded producers that operate on both a national and an international basis across single or multiple frozen food categories. We also face competition more generally from chilled food, distributors and retailers of fresh products, baked goods and ready-made meals. We may not successfully compete with our existing competitors and new competitors may enter the market. Discounters are supermarket retailers which offer a narrow range of food and grocery products at discounted prices and which typically focus more on non-branded rather than branded products. As we enter into a period
of high inflation, shoppers may move to other channels such as discounters. A continued increase in discounter sales may adversely affect the sales of our branded products. Market dynamics continue to evolve and growth rates might change by channel and over time. For example, during the COVID-19 pandemic we saw a shift in consumer behavior to online shopping. The growth in eCommerce has encouraged the entry of new competitors and business models, intensifying competition in the food industry.
In addition, it is difficult to accurately predict the pricing or promotional actions of our competitors or their effect on consumer perceptions or the success of our own advertising and promotional efforts, particularly during the current period of high inflation. Our competitors develop and launch products targeted to compete directly with our products. In order to effectively compete, our products must provide higher value and/or quality than alternatives,
particularly during periods of economic uncertainty and rising prices. If not, consumers may be more likely to
purchase private label products over ours. Our retail customers, most of which promote their own private label products, control the shelf space allocations within their stores and they may allocate more shelf space to private label products or to our branded competitors’ products in accordance with their respective promotional or pricing strategies. Decreases in shelf space allocated to our products, increases in competitor promotional activity, aggressive marketing strategies by competitors, changes to the strategies deployed by retailers or other factors may require us to reduce our prices or invest greater amounts in advertising and promotion of our products to ensure our products remain competitive.
Furthermore, some of our competitors may have substantially greater financial, marketing and other resources than we have. This creates competitive pressures that could cause us to lose market share or require us to lower prices, increase advertising expenditures or increase the use of discounting or promotional campaigns. These competitive factors may also restrict our ability to increase prices, including in response to commodity and other cost increases. If we are unable to continue to respond effectively to these and other competitive pressures, our customers may reduce orders of our products, may insist on prices that erode our margins or may allocate less shelf space and fewer displays for our products. These or other developments could materially and adversely affect our sales volumes and margins and result in a decrease in our operating results, which could have a material adverse effect on our business and financial condition.
Sales of our products are subject to changing consumer preferences and trends; if we do not correctly anticipate such changes, our sales and profitability may decline.
There are a number of trends in consumer preferences which have an impact on us and the frozen food industry as a whole. These include, among others, preferences for speed, convenience and ease of food preparation; natural, nutritious and well-proportioned meals; products that are sustainably sourced and produced and are otherwise environmentally friendly and the recent trend towards meat substitutes. Concerns as to the health impacts and nutritional value of certain foods may increasingly result in food producers being encouraged or required to produce products with reduced levels of salt, sugar and fat and to eliminate trans-fatty acids and certain other ingredients, including gluten and animal products. Consumer preferences are also shaped by concern over waste reduction, the level of processing of certain products and the environmental impact of products.
The success of our business depends on both the continued appeal of our products and, given the varied backgrounds and tastes of our customer base, our ability to offer a sufficient range of products to satisfy a broad spectrum of preferences. Any shift in consumer preferences in the UK, Italy, Germany, France, Sweden or Austria (the “Key Markets”) could have a material adverse effect on our business.
Our competitiveness depends on our ability to predict and quickly adapt to consumer preferences and trends and to exploit profitable opportunities for product development without alienating our existing consumer base or focusing excessive resources or attention on unprofitable or short-lived trends. All of these efforts require significant
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research and development and marketing investments. If we are unable to respond on a timely and appropriate basis to changes in demand or consumer preferences and trends, our sales volumes and margins could be materially adversely affected.
Activist groups have in the past, and may in the future, use pressure tactics to influence our decisions regarding commodities, raw materials and supply chains based on their stances regarding, for example, inhumane treatment of animals and deforestation by our suppliers. These groups may be able to coordinate their actions with other groups, threaten strikes or boycotts or enlist the support of well-known persons or organizations in order to increase the pressure on us to achieve their stated aims. In the future, these actions or the threat of these actions may force us to change our business practices or pricing policies, which may have a material adverse effect on our business, results of operations and financial condition.
Our future results and competitive position are dependent on the successful development of new products and improvement of existing products.
We aim to introduce new products and re-launch and extend existing product lines on a timely basis in order to counteract obsolescence and decreases in sales of existing products as well as to increase overall sales of our products. The launch and success of new or modified products are inherently uncertain, especially as to the products’ appeal to consumers, and there can be no assurance as to our continuing ability to develop and launch successful new products or variations of existing products. The failure to launch a product successfully can give rise to inventory write-offs and other costs, can affect consumer perception of our other products and can lead to erosion of brand equity. Market factors and the need to develop and provide modified or alternative products may also increase costs. In addition, launching new or modified products can result in cannibalization of sales of our existing products if consumers purchase the new product in place of our existing products. If we are unsuccessful in developing new products in response to changing consumer demands or preferences in an efficient and economical manner, or if our competitors respond more effectively than we do, demand for our products may decrease, which could materially and adversely affect our business, financial condition and results of operations.
The ongoing conflict between Ukraine and Russia and the wider geopolitical impact of the conflict could materially and adversely affect our business.
On February 24, 2022, Russian forces invaded Ukraine. While we do not have any direct operations or sales in either Russia or Ukraine, these countries are responsible for many commonly used raw materials and resources used in, or in the manufacturing of, our products such as some species of fish, edible oils (such as sunflower oil), wheat and energy. The ongoing conflict in the Ukraine, and the imposition of economic sanctions and additional tariffs could result in considerable reductions in the availability or increase the cost of such raw materials and resources. In particular, both before and following the invasion, the U.S., the EU and the UK have imposed economic sanctions and tariffs on Russia. It is not clear to what extent such sanctions and tariffs could continue to proliferate and increase, what raw materials and resources may be affected, nor for how long they will be in place. At present, there are no sanctions in place affecting any of the raw materials we buy. Our inability, and the inability of our suppliers, to source certain raw materials, particularly fish, and provide certain products to customers and consumers could materially and adversely affect our business. In addition, sanctions and tariffs are intended to and will have an impact on international trade and the global economy. Further steps that might be taken in response to the crisis and their consequences are unknown but could include further sanctions, tariffs, embargoes, regional instability, adverse effects on macroeconomic conditions and adverse effects on exchange rates and financial markets.
Should there be additional sanctions, tariffs or restrictions on the supply of fish from Russian waters that impact our supply chain or specific products, it would not be possible to replace entirely the required volumes of MSC certified fish in the short-to-medium term. Furthermore, should there be a reduction in availability we may also face higher costs for the raw materials and resources available. In anticipation of that possibility, we are continually seeking clarity from governments on the issue and diversifying our supply sources for raw materials and resources. For example, we have begun diversifying our fish supply by looking into alternative species and product formats. However, these efforts are subject to negotiation of acceptable contractual terms, availability of alternative species at comparable prices and the conformity of any alternatives to our standards. Where additional sanctions or tariffs are being considered, we are asking for a realistic transition period, similar to that of the approach being taken by countries phasing out Russian oil and gas supplies. There is no guarantee that any such transition period will be provided.
Russia and Ukraine are key suppliers of sunflower oil. We have seen sharp inflation in the price of edible oils as availability became a concern. Sunflower oil is used in some of the Company's products and in anticipation of availability constraints we have altered recipes to allow for the use of alternative oils. Global producers have also responded by moving to alternatives to address longer term supply issues.
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Our factories in Europe use energy for which a proportion is sourced from Russia. If sanctions, tariffs or restrictions were to be implemented by Russia or the EU on the use of such resources this could materially and adversely affect our business.
Additionally, the invasion of Ukraine by Russian forces could impact many of the other risk factors listed in these Risk Factors. In particular, but not limited to, the conflict could have an effect on our profitability, fluctuations on our future borrowings, fluctuations on the foreign currency market, the cost of borrowings, the creditworthiness of our customers and our suppliers, the laws and regulations affecting our business and the carrying value of goodwill and other assets in our business. The conflict is ongoing and as such the related sanctions, potential government actions and economic impact remain uncertain. At this time it is not possible to predict the extent or nature of these impacts on our business although we expect the current conflict to continue for some time. Any change or movement in any of the elements listed in this section could materially and adversely affect our business.
We may not be able to increase prices to fully offset inflationary pressures on costs for materials or other inputs.
The food industry is currently experiencing a period of sustained high inflation, which has been caused by a number of factors including the COVID-19 pandemic, the conflict in Ukraine and labor shortages. Our ability to pass through increases in the prices of raw materials, energy, packaging or freight and logistics costs to our customers depends, among others, on prevailing competitive conditions and pricing methods in the markets in which we operate, and we may not be able to pass through such price increases to our customers. Even if we are able to pass through increases in prices, there is typically a time lag between cost increases impacting our business and implementation of product price increases during which time our profit margin may be negatively impacted. Recovery of cost inflation, driven by both commodity cost increases or changes in the foreign exchange rate of the currency the commodity is denominated in, can also lead to disparities in retailers’ shelf-prices between different brands which can result in a competitive disadvantage and volume decline. During our negotiations to increase our prices to recover cost increases, customers may take actions which exacerbate the impact of such cost increases, for example by ceasing to offer our products or deferring orders until negotiations have ended. Our inability to pass through price increases in raw materials, energy, packaging or freight and logistics and preserve our profit margins in the future could materially adversely affect our business, financial condition and results of operations.
Pandemics and other contagious outbreaks and government actions in response thereto could have a material adverse impact on our business, results of operations and financial condition.
The ultimate impact that a pandemic, such as COVID-19, or other contagious outbreaks will have on our business, results of operations and financial condition is uncertain. Restrictions, and future prevention and mitigation measures, as a result of the COVID-19 pandemic, have had and are continuing to have, an adverse impact on global economic conditions.
Currently, with the COVID-19 pandemic, exacerbated by the conflict in Ukraine and labor shortages, we continue to experience increased inflationary and availability pressure on raw materials. If our suppliers, co-manufacturers, distributors or transportation and logistics providers are also subject to such inflationary and availability pressures, and we are unable to access alternatives, or to access alternatives on commercially reasonable terms, this could negatively impact our market share, our ability to increase revenue, cause harm to our reputation and have a material adverse impact on our operating results.
We operate production space in facilities across Europe. While we have not experienced any significant disruptions to our facilities, we could, in the future, be forced to close our facilities or reduce operations due to government responses to the pandemic or employee illness or health concerns, including as a result of sustained periods of employees working from home. If a significant percentage of our workforce is unable to work, including because of illness or travel or government restrictions in connection with COVID-19, or any other pandemic or contagious outbreak, or if we are required to shut down one or more of our facilities, this could have a material adverse effect on our revenue, operations and results of operations.
The extent of COVID-19’s effect on our operational and financial performance will depend on future developments, including the duration, spread, seasonality and intensity of further outbreaks, the emergence of new variants of the virus, the availability and effectiveness of vaccines and government responses to the pandemic (including any further lockdowns, mandatory social distancing or other restrictive measures), all of which are uncertain and difficult to predict considering the rapidly evolving landscape. If the COVID-19 pandemic continues to evolve in such a way that its effects are likely to continue for a longer period than currently envisaged, the disease could exacerbate other risks we face, and also have a material adverse effect on our business, results of operations, financial condition and cash flows and adversely impact the trading price of our ordinary shares. Examples of trends which are in part the result of COVID-19
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restrictions include, supply chain pressures and delays as a result of localized lockdowns in China, increases in the cost of energy and raw materials, shortage of labor across Europe, and shortages of commercial truck drivers. A substantial supply of our fish is processed in China, and as such, the lockdowns in China could have a material impact on our business if they are increased or continue for a longer period than currently anticipated.
We are subject to the ongoing negotiations and implementation of the exit of the UK from the EU.
Since January 1, 2021, the UK has been trading as an independent country outside of the European Union following the UK electorate voting in favor of leaving the European Union (commonly referred to as “Brexit”) on June 23, 2016 and the conclusion of a new trading agreement between the European Union and the UK which was entered into on December 24, 2020. This means that new regulations are in place governing the import and export of goods between the UK and the European Union from this date which places a greater cost and administrative burden on us, for example by requiring veterinary certificates for exporting products of animal origin from the UK to the European Union. There are also additional regulations in place governing tariffs for products of non-EU origin when they are exported across the border from the UK to the European Union which also can place a greater cost and administrative burden on us. At some point to be determined in 2024, veterinary certificates will additionally be required for importing products from the European Union to the UK (delayed from July 1, 2022) and negotiations continue over the ongoing trade relationship with Europe, for example, the ongoing negotiations in relation to the Northern Ireland Protocol, which could lead to further changes which could lead to increased tariffs, packaging changes and a greater cost and administrative burden on us. The UK government may implement additional regulations governing trade movement into and out of the UK which could have a negative impact on our business and results of operations.
For the year ended December 31, 2022, 27% of our revenue was derived from the UK, with production both in the UK and through imports from the EU. In addition, our manufacturing facilities in the UK export to EU countries. Furthermore, we have employees in both the UK and other European countries. As a result of Brexit, we may experience adverse impacts on profitability in the UK and other markets. The new Brexit administration requirements could mean that the UK suffers as a result of losing commercially favorable access to the EU single market, or specific countries in the EU, resulting in a negative impact on the general and economic conditions in the UK and the EU which could in turn have a negative impact on our business and results of operations. Future changes may occur in regulations that we are required to comply with as well as amendments to treaties governing but not limited to tax, duties and tariffs. which could adversely impact our operations and require us to modify our financial and supply arrangements. To avoid such impacts, we may have to restructure or relocate some or all of our operations which would be costly and negatively impact our profitability, cash flow and financial condition.
We are exposed to macroeconomic and other trends that could adversely impact our operations in our Key Markets.
We conduct operations in our Key Markets from which approximately 70% of our revenue was generated during the year ended December 31, 2022. We are particularly influenced by economic developments and changes in consumer habits in those countries.
The geographic markets in which we compete have been affected by negative macroeconomic trends which have affected consumer confidence. For example, inflation and the COVID-19 pandemic have created political and economic uncertainty both in the UK and the other geographies in which we operate. Additionally, the continuing conflict in Ukraine will also affect different geographies in different ways depending on their reliance or otherwise on products of Russian origin. A deterioration in economic conditions could result in increased inflationary pressure, increased unemployment rates, increased short and long-term interest rates, consumer and commercial bankruptcy filings, a decline in the strength of national and local economies, and other results that negatively impact household incomes. This can result in changes to consumers purchasing habits, for example by purchasing more promoted products, purchasing cheaper private label products instead of equivalent branded products, switching to cheaper proteins and switching to discounter stores. Such macroeconomic trends could, among other things, negatively impact global demand for branded and premium food products, which could result in a reduction of sales or pressure on margins of our branded products or cause an increasing transfer to lower priced product categories.
We may not be able to source raw materials or other inputs of an acceptable type or quality.
We use significant quantities of food ingredients and packaging materials and are therefore vulnerable to fluctuations in the availability and price of such food ingredients, packaging materials and other supplies. In particular, raw materials have historically represented a significant portion of our cost of sales, and accordingly, adverse changes in raw material prices have in the past and may in the future, negatively impact our results of operations.
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Specifically, the availability and the price of fish, vegetables and other agricultural commodities, including poultry and meat, can be volatile. The current conflict in Ukraine is also causing changes in the global supply chain with fish, poultry, energy, fuel, edible oils, wheat, vegetables and packaging materials affected among others. We are also affected by the availability of quality raw materials, most notably fish, which can be impacted by the fishing and agricultural policies of the UK, European Union and other countries including national or international quotas that can limit volume of raw materials.
General economic conditions, economic sanctions due to regional conflict, unanticipated demand, problems in manufacturing or distribution, natural disasters, weather conditions during the growing and harvesting seasons, farmers choosing to grow different crops due to changing economic conditions and commodity prices, plant, fish and livestock diseases, the availability of sustainably sourced raw materials, or national or international quarantines can all also adversely affect availability and prices of commodities in the long and short term.
While we attempt to negotiate fixed prices for certain materials with our suppliers for periods ranging from one month to a full year, we cannot guarantee that our strategy will be successful in managing input costs if prices increase for extended periods of time. Additionally, by entering fixed price agreements we may potentially be limiting our ability to benefit from possible price decreases. Moreover, there is no market for hedging against price volatility for certain raw materials and accordingly such materials are bought at the spot rate in the market.
Our ability to avoid the adverse effects of a pronounced, sustained price increase in raw materials is limited. Any increases in prices or scarcity of ingredients or packaging materials required for our products could increase our costs and disrupt our operations. If the availability of any of our inputs is constrained for any reason, we may not be able to obtain sufficient supplies or supplies of a suitable quality on favorable terms or at all. Such shortages could materially adversely affect our market share, business, financial condition and results of operations.
We rely on sales to a limited number of large food retailers and should they perform poorly or the buying power of these large retailers increase, our business could be adversely affected.
Our retail customers include supermarkets and large chain food retailers. Throughout our markets, the food retail segments are highly concentrated. For the year ended December 31, 2022, our top 10 retail customers accounted for 34% of revenue. In recent years, the major multiple (multi-channel) retailers in Key Markets have increased their share of the grocery market and price competition between retailers has intensified. The strength of the major multiple retailers’ bargaining position gives them significant leverage over their suppliers in negotiating pricing, product specification and the level of supplier participation in promotional campaigns and offers, which can reduce our margins. International alliances among retailers continue to become stronger, and the trend for consolidation in Europe at a local level and across borders is ongoing. Further consolidation among the major multiple retailers or disproportionate growth in relation to their competitors could increase their relative negotiating power and allow them to force a negative shift in our trade terms. Our results of operations could also be adversely affected if these retailers suffer a significant deterioration in sales performance, if we are required to reduce our prices or increase our promotional spending activity as a consequence, if we lose business from a major retail customer or if our relationship with a major retail customer deteriorates.
Our retail customers also offer private label products that compete directly with our products for retail shelf space and consumer purchases. Private label products typically have higher margins for retailers than other branded products. Accordingly, there is a risk that our retail customers may give higher priority to private label products or the branded products of our competitors as a result of a change in pricing strategy or a change in economic conditions which would adversely affect sales of our products. Our major multiple retail customers are also expanding into non-food product lines in their stores, thereby exerting pressure on available shelf space for other categories including our products. We may be unable to adequately respond to these trends and, as a result, the volume of our sales may decrease, or we may need to lower the prices of our products.
As is typical in our industry, sales to our retail customers in our markets are made on a daily demand basis. We generally do not have long-term contractual commitments to supply such customers and must renegotiate supply and pricing terms of our products on a regular basis. Customarily, trade terms are renegotiated annually or more frequently in periods of high inflation. It is not always the case that our retail customers accept more frequent negotiations of price increases nor the amount of them. In addition, ad hoc changes are often made on an informal basis, such as by email, to reflect discounts and promotional arrangements. Amounts paid can be subject to end of period reconciliations to reflect these informal arrangements. In some cases, our retail customers seek to claim reimbursement for informal discount arrangements going back multiple periods. In addition, we do not have written contractual arrangements with a number of our other retail customers. Most of our retail customer relationships or arrangements could be terminated or renegotiated at any time and, in some cases, without reasonable notice.
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Our business is subject to the risks of non-payment and non-performance by our retail customers. We manage our exposure to credit risk through credit analysis and monitoring procedures, and sometimes use letters of credit, prepayments and guarantees. However, these procedures and policies cannot fully eliminate retail customer credit risk, and to the extent our policies and procedures prove to be inadequate, it could negatively affect our financial condition and results of operations. In addition, some of our retail customers may be highly leveraged and subject to their own operating and regulatory risks and, even if our credit review and analysis mechanisms work properly, we may experience financial losses in our dealings with such parties. Any future financial market disruptions or tightening of the credit markets could result in some of our retail customers experiencing a significant decline in profits and/or reduced liquidity. A significant adverse change in the financial position of a retail customer could require us to assume greater credit risk relating to that retail customer and could limit our ability to collect receivables. We do not maintain credit insurance to insure against retail customer credit risk.
Any of the above risk factors in relation to our retail customers could have a material adverse effect on our business, financial condition and results of operations.
We may be subject to increased distribution costs or disruption of transportation services.
We are dependent on third parties for almost all of our transportation and distribution requirements and distribution costs have historically fluctuated significantly over time. Increases in such costs could result in reduced profits. In addition, certain factors affecting distribution costs are controlled by our third-party carriers. To the extent that the market price for fuel or freight or the number or availability of carriers fluctuates, our distribution costs could be affected. Furthermore, temporary or long-term disruption of transportation services due to weather-related problems, impacts of COVID-19, increased energy and fuel costs as a result of the conflict in Ukraine, strikes or other events could impair our ability to supply products affordably and in a timely manner or at all. Failure to receive our raw materials or to deliver our food products promptly could also result in inventory spoilage. These factors could impact our commercial reputation and result in our customers reducing their orders or ceasing to order our products. We require the use of refrigerated vehicles to ship our products and such distribution costs represent an important element of our cost structure. If we change the transportation services we use, we could face logistical difficulties that could delay deliveries, and we could incur costs and expend resources in connection with such change. Any increases in the cost of transportation, energy or fuel, and any disruption in transportation, including the availability of suitable transportation (including the availability of suitable refrigerated transport, freight containers or lorry drivers), could have a material adverse effect on our business, financial condition and results of operations.
Failure to protect our brand names and trademarks could materially affect our business.
Our principal brand names and trademarks (including but not limited to Birds Eye, iglo, Findus, Aunt Bessie's, Goodfella's, Ledo and Frikom) are key assets of our business and our success depends upon our ability to protect our intellectual property rights. We rely upon trademark and other intellectual property laws to establish and protect our intellectual property rights but cannot be certain that the actions we have taken or will take in the future will be adequate to prevent violation of our proprietary rights. Litigation may be necessary to enforce our trademark or proprietary rights. In addition, the Birds Eye brand, which we use in the UK, is used by other producers in the United States and Australia. Even though the brands have different logos, adverse publicity from such other markets may negatively impact the perception of our brands in our respective markets. Adverse publicity, legal action or other factors could lead to substantial erosion in the value of our brands, which could lead to decreased consumer demand and could have a material adverse effect on our business, financial condition and results of operations.
There is also a risk that other parties may have intellectual property rights covering some of our brands, products or technology. If any third parties bring a claim of intellectual property infringement against us, we may be subject to costly and time-consuming litigation, diverting the attention of management and our employees. If we are unsuccessful in defending against such claims, we may be subject to, among other things, significant damages, injunctions against development and sale of certain products, or we may be required to enter into costly licensing agreements, any of which could have an adverse impact on our business, financial condition, and results of operations.
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Our business is dependent on third-party suppliers.
We outsource some of our business functions to third-party suppliers, such as the processing and supply of certain vegetables and other products, the manufacturing of certain products and packaging materials and distribution of our products. Our suppliers are subject to their own unique operational and financial risks, which are out of our control. Our suppliers may fail to meet timelines or contractual obligations or fail to provide us with sufficient products or services, which may adversely affect our business. For example, if a third-party supplier is impacted by increased costs or unavailability of energy and raw materials as a result of the conflict in Ukraine or COVID-19, or is prevented from supplying as a result of changes in the international sanctions or customs regimes, this could negatively affect the price and availability of our ingredients, products and/or packaging materials and may adversely impact our supply chain and operations. Moreover, there may be delays or shortages in procuring alternative suppliers, co-manufacturing capacity, or distribution capability.
Certain of our contracts with key suppliers, such as for the raw materials we use in our products, are short term, can be terminated by the supplier upon giving notice within a certain period and restrict us from using other suppliers. Also, a number of our supply contracts, including for fish and vegetables, may be terminated by the supplier upon a change in our ownership. Failure to appropriately structure or adequately manage our agreements with third parties may adversely affect our supply of raw materials or our supply of products to our customers. We are also subject to credit risk with respect to our third-party suppliers. If any such suppliers become insolvent, an appointed trustee could potentially ignore the service contracts we have in place with such party, resulting in increased charges or the termination of the service contracts. We may not be able to replace a service provider within a reasonable period of time, on as favorable terms or without disruption to our operations.
Any adverse changes to our relationships with third-party suppliers could have a material adverse effect on our image, brand and reputation, as well as on our business, financial condition and results of operations.
In addition, to the extent that our creditworthiness is impaired, or general economic conditions decline, certain of our key suppliers may demand different or onerous payment terms that could materially adversely affect our working capital position, or such suppliers may refuse to continue to supply to us or seek to re-negotiate the contracts they have with us. A number of our key suppliers have taken out trade credit insurance on our ability to pay them. To the extent that such trade credit insurance becomes unobtainable or more expensive due to market conditions, we may face adverse changes to payment terms by our key suppliers or they may refuse to continue to supply us.
Health concerns or adverse developments with respect to the safety or quality of products of the food industry may damage our reputation, increase our costs of operations and decrease demand for our products.
Food safety and the public’s perception that our products are safe and healthy are essential to our image and business. We sell food products for human consumption, which subjects us to safety risks such as product contamination, spoilage, misbranding or product tampering. Product contamination, including the presence of foreign objects, undeclared allergens, substances, chemicals or other agents or residues or the introduction of genetically modified organisms, could require product withdrawals or recalls or the destruction of inventory, and could result in negative publicity, reputational harm, temporary plant closures and substantial costs of compliance or remediation. In addition, food producers, including us, have been targeted by extortion attempts that threatened to contaminate products displayed in supermarkets. Such attempts can result in the temporary removal of products from shelf displays as a precautionary measure and result in lost revenue. We may also be impacted by publicity concerning any assertion that our products caused illness, injury or death. In addition, we could be subject to claims or lawsuits relating to an actual or alleged illness stemming from product contamination or any other incidents that compromise the safety and quality of our products. Any significant lawsuit or widespread product recall or other events leading to the loss of consumer confidence in the safety and quality of our products could damage our brand, reputation and image and negatively impact our sales, profitability and prospects for growth.
We could also be adversely affected if consumers lose confidence in the safety and quality of certain food products or ingredients, the sustainability credentials of certain products or ingredients, for example, palm oil or soy, the frozen category or the food safety system generally. If another company recalls or experiences negative publicity related to a product in a category in which we compete, consumers might reduce their overall consumption of products in this category or confuse our products with those of such company. Adverse publicity about these types of concerns, whether valid or not, may discourage consumers from buying our products or cause production and delivery disruptions. In addition, product recalls are difficult to foresee and prepare for and, in the event we are required to recall one or more of our products, such recall may result in loss of sales due to unavailability of our products and may take up a significant amount of our management’s time and attention. We cannot guarantee that our efforts to monitor food safety risks and such efforts of our suppliers will be successful or that such risks will not materialize. In addition, we cannot
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guarantee that our efforts, through contractual relationships and regular inspections, to control the risk of contamination caused by third parties, including in relation to the several manufacturing and distribution processes we outsource, will be successful or that contamination of our products by third parties will not materialize and have a material adverse effect on our business, financial condition and results of operations.
We are also subject to further risks affecting the food industry generally, including risks posed by widespread contamination and evolving nutritional, environmental/sustainability, animal welfare, social and health-related concerns. For example, we could be affected by overfishing in the seafood supply chain which poses a risk to current and future fish stocks, ecosystems, and communities. Further damage is being done by careless fishing practices, including avoidable by-catch of non-target species and fishing equipment left in the ocean (known as Ghost Gear), which is a significant contributor to plastic pollution. Seafood supply chains are also at risk of a range of human rights abuses, including modern slavery. Overfishing risks are compounded by the negative consequences of climate change, including ocean heating and acidification. All or any of these factors could give rise to a negative perception of the seafood supply chain and lead to reduced sales, higher prices and consumers choosing alternative products. Regulatory authorities may limit the supply of or place prohibitive charges on certain types of food products in response to public health concerns and consumers may perceive certain products to be unsafe, unsustainable, unhealthy or otherwise undesirable. In addition, governmental regulations may require us to discontinue certain offerings or limit the range of products we offer, for example by limiting the amount of certain nutrients in our products as is currently the case with regard to HFSS nutrients in the UK. We may be unable to find substitutes that are as appealing to our customer base, or such substitutes may not be widely available or may be available only at increased costs. Such substitutions or limitations could also reduce demand for our products
We could also be subject to claims or lawsuits relating to an actual or alleged illness or injury or death stemming from the consumption of a misbranded, altered, contaminated or spoiled product, even where such misbranding, alteration, contamination or spoilage is out of our control, which could negatively affect our reputation and business. Awards of damages, settlement amounts and fees and expenses resulting from such claims and the public relations implications of any such claims could be significant and have an adverse effect on our business. The availability and price of insurance to cover claims for damages are subject to market forces that we do not control, and such insurance may not cover all the costs of such claims and would not cover damage to our reputation. Even if product liability claims against us are not successful or fully pursued, these claims could be costly and time consuming, increase our insurance premiums and divert our management’s time and resources towards defending them rather than operating our business. In addition, any adverse publicity concerning such claims, even if unfounded, could cause customers to lose confidence in the safety and quality of our products and damage our reputation and brand image.
A failure in our cold chain could lead to unsafe food conditions and increased costs.
“Cold chain” requirements setting out the temperatures at which our ingredients and products are stored are established both by statute and by us to help guarantee the safety of our food products. The cold chain is maintained from the moment the ingredients arrive at, or are frozen by, our suppliers, through our manufacturing and transportation of products and ultimately to the time of sale in retail stores. These standards ensure the quality, freshness and safety of our products. A failure in the cold chain could lead to wastage, increased costs, food contamination, risks to the health of consumers, fines and damage to our brands and reputation, each of which could have a material adverse effect on our business, financial condition and results of operations.
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Potential liabilities and costs from litigation could adversely affect our business.
We are subject to litigation, arbitration and regulatory proceedings, audits and investigations from time to time. There is no guarantee that we will be successful in defending ourselves in civil, criminal or regulatory actions, including under general, commercial, employment, intellectual property, food quality and safety, anti-trust and trade, tax, advertising and claims, and environmental laws and regulations, or in asserting our rights under various new and existing laws and regulations. For example, we could face allegations of false, misleading or deceptive advertising, claims or marketing, allegations or investigations of anti-competitive practices or other criticisms which could result in litigation, arbitration or regulatory proceedings and result in potential liabilities or costs which may be significant and/or may damage our reputation. In addition, the defense of these lawsuits may divert our management’s attention from other business matters. The costs and other effects of potential and pending litigation and administrative actions against us, and new legal requirements, cannot be determined with certainty and may differ from expectations and may have a material adverse effect on our reputation, business, financial condition and results of operations.
We are exposed to local business and tax risks in many different countries.
Our business is subject to risks resulting from differing legal, political, social and regulatory requirements, economic conditions and unforeseeable developments in our markets, all or any of which could result in disruption of our activities. These risks include, among others, political instability, differing economic cycles, tariffs, duties and adverse economic conditions, changes in regulatory and legislative environments, currency exchange rate fluctuations, inability to collect payments or seek recourse under or comply with ambiguous or vague commercial or other laws, changes in distribution and supply channels, foreign exchange controls and restrictions on repatriation of funds, and difficulties in attracting and retaining qualified management and employees. Our overall success in the markets in which we operate depends, to a considerable extent, on our ability to effectively manage differing legal, political, social and regulatory requirements, economic conditions and both foreseeable and unforeseeable developments. We cannot guarantee that we will succeed in developing and implementing policies and strategies which will be effective in each location where we do business.
We must comply with complex and evolving tax regulations in the various jurisdictions in which we operate, which subjects us to international tax compliance risks. Some tax jurisdictions in which we operate have complex and subjective rules regarding income tax, value-added tax, sales or excise tax, tariffs, duties and transfer tax. From time to time, our foreign subsidiaries are subject to tax audits and may be required to pay additional taxes, interest or penalties should the taxing authority assert different interpretations, or different allocations or valuations of our services which could be material and could reduce our income and cash flow from our international subsidiaries. We currently have several pending tax assessments and audits in various jurisdictions including Germany. The agreements by which we acquired certain businesses provide for certain indemnifications of tax liabilities which may arise in certain jurisdictions which we believe are sufficient to address these specific tax matters as far as they relate to those businesses but our belief that these indemnities are sufficient may prove incorrect. We have also established, where appropriate, reserves and provisions for tax assessments which we believe to be adequate to address potential tax liabilities but our belief that these reserves and provisions are adequate may prove incorrect. However, it is possible that the tax audits referred to above could result in the volatility of timings of cash tax payment and recoveries. In addition, it is possible that countries will increase tax rates in the future to address rising costs following the COVID-19 pandemic and global economic pressures.
The price of energy and other raw materials we consume in the manufacture, storage and distribution of our products are subject to volatile market conditions.
The price and availability of electricity and other energy resources required in the manufacture, storage and distribution of our products is subject to volatile market conditions. These market conditions are often affected by political and economic factors beyond our control, including, for instance, the energy policies of the countries in which we operate. For example, the current conflict in Ukraine is resulting in volatility in the markets for energy and fuel as a result of the widespread usage of gas, oil and coal from Russia throughout Europe. Any sustained increases in energy costs, or disruptions to or limitations in supply, could have an adverse effect on our business, financial conditions and results of operations and could affect our competitive position if our competitors’ energy costs do not increase at the same rate as ours or if they do not suffer the same disruptions to or limitations in supply. Such disruptions may also occur as a result of the loss of energy supply contracts or the inability to enter into new energy supply contracts on commercially attractive terms. Furthermore, natural catastrophes, regional conflicts or similar events could affect the electricity grid. Any such disruptions or increases in energy costs as a result of the aforementioned factors or otherwise, could have a material adverse effect on our business, financial condition and results of operations.
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Our supply network and manufacturing and distribution facilities could be disrupted by climate-related and other factors beyond our control.
Severe weather conditions and natural disasters, such as storms, floods, droughts, frosts, earthquakes or pestilence, may affect the supply of the raw materials and energy resources that we use for the manufacturing of our products. For example, changing climate may cause flooding and drought in crop growing areas or changes in sea temperatures may affect marine biomass, fishing catch rates and overall fishing conditions. In addition, drought or floods may affect the feed supply for red meat and poultry, which in turn may affect the quality and availability of protein sources for our products. Adverse weather conditions and natural disasters can reduce crop size and crop quality, which in turn can reduce our supplies of raw materials, lower recoveries of usable raw materials, increase the prices of our raw materials, increase our cost of transporting and storing raw materials and finished goods, or disrupt our production schedules. Competing food producers can be affected differently by weather conditions and natural disasters depending on the location of their supply sources. If our climate continues to change, whether as a result of increased greenhouse gas emissions or otherwise, and leads to increasingly severe weather conditions, shortages of raw materials, local water scarcity, soil health deterioration, ocean heating and acidification, increased price volatility, increased regulation, and impacts the quality of raw materials, together with any resulting social unrest, it could have a material adverse effect on our business, financial condition and results of operation.
Our supply network could also be adversely affected by the outbreak of various diseases or other public health crises, such as the COVID-19 pandemic that may result in delays in procurement or an inability to access alternative supply on commercially reasonable terms, which may have an adverse impact on our operating results. In addition, a significant outbreak of a contagious disease in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn that could affect demand for our products and have a material adverse effect on our results of operations.
In addition, our manufacturing and distribution facilities may be subject to damage, disruption or closure resulting from conflict, fire, terrorist activity, natural disasters, health epidemics or other causes. For example, our Lowestoft and Bremerhaven manufacturing facilities are situated in regions which have historically been prone to flooding. Extensive damage to any of our nineteen major manufacturing facilities as a result of any of the foregoing reasons, could, to the extent that lost production could not be compensated for by unaffected facilities, severely affect our ability to conduct our business operations and, as a result, adversely affect our business, financial condition and results of operations.
Furthermore, as we lease parts of our Boulogne, Bremerhaven, Lowestoft, and Tonsberg manufacturing sites, the use of these properties is subject to certain terms and conditions, the breach of which could affect our ability to continue use of these properties which in turn may disrupt our operations and may materially adversely affect our results of operations.
Also, while we do not have any direct operations or sales in either Russia or Ukraine, these countries are responsible for many commonly used raw materials and resources such as fish, edible oils, wheat and energy. The ongoing conflict in Ukraine could see considerable reductions in the availability or cost of such raw materials and resources, for example if the crops are not planted in as great a quantity in any year, and if we are not able to source or find suitable alternatives in a cost effective manner, then this may adversely affect our business, financial condition, and results of operations.
Seasonality impacts our business, and our revenue and working capital levels may vary quarter to quarter.
Our sales and working capital levels have historically been affected to a limited extent by seasonality. In general, sales volumes for savory frozen food are slightly higher in cold or winter months, partly because there are fewer fresh alternatives available for vegetables and because our customers typically allocate more freezer space to the ice cream segment in summer or hotter months. The Fortenova Acquisition follows a different seasonality to the legacy business, with stronger performance through the summer months as a result of the ice-cream business. In addition, variable production costs, including costs for seasonal staff, and working capital requirements associated with the keeping of inventories, vary depending on the harvesting and buying periods of seasonal raw materials, in particular vegetable crops. For example, inventory (and therefore net working capital) levels typically peak in August to September just after the pea harvest. If seasonal fluctuations are greater than anticipated, our business, financial condition and results of operations could be adversely affected.
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We may be unable to realize the expected benefits of actions taken to align our resources, operate more efficiently and control costs.
When required we take actions, such as workforce reductions, plant closures and consolidations, and other cost reduction initiatives, to align our resources with our growth strategies in order to operate more efficiently and control costs. As these plans and actions are complex, unforeseen factors could result in expected savings and benefits to be delayed or not realized to the full extent planned, could negatively impact labor relations, including causing work stoppages, and could lead to disruptions in our business and operations and higher short-term costs related to severance and related capital expenditures.
We may be subject to significant disruption in our workforce or the workforce of our suppliers, which could adversely affect our business, financial condition and results of operations.
As of December 31, 2022, we employed approximately 7,535 employees, of which approximately 1,338 were located in Germany, 1,355 were located in the UK, 1,169 were located in Serbia, 977 were located in Croatia, , 481 were located in Italy, 406 were located in Sweden/Norway, 319 were located in Bosnia & Herzegovina, 305 were located in France and 1,185 employees in other locations. As of December 31, 2022, approximately 70% of our employees worked in our manufacturing operations. We have in the past, and may in the future, experience labor disputes and work stoppages at one or more of our manufacturing sites due to localized strikes or strikes in the larger retail food industry sector. We have also been involved in negotiations on collective bargaining agreements. A labor stoppage or other interruption at one of our nineteen manufacturing sites (or at the site of any of our suppliers) would impact our ability to supply our customers and could have a material adverse effect on such facility’s operations and, potentially, on our business, financial condition and results of operations.
Labor shortages and higher labor costs could adversely affect our business and financial results.
A sustained labor shortage or increased turnover rate within our workforce, caused by macroeconomic factors beyond our control, have led, and could in the future lead, to production delays and increased costs, such as increased overtime costs to meet demand. Such labor shortages and increased costs could adversely affect our business and financial results.
Additionally, we compete with other producers for good and dependable employees. The supply of such employees is limited and competition to hire and retain them may result in higher labor costs, for example as a result of higher wages negotiated in response to inflationary pressure and cost of living increases. Furthermore, a number of our employees are subject to national minimum wage requirements. If legislation is enacted that has the effect of raising national minimum wage requirements, requires additional mandatory employee benefits or affects our ability to hire or dismiss employees, we could face substantially higher labor costs. High labor costs could adversely affect our profitability if we are not able to pass them on to our customers.
We are dependent upon key executives and highly qualified managers and we cannot assure their retention.
Our success depends, in part, upon the continued services of key members of our management. Our executives’ and managers’ knowledge of the market, our business and our Company represents a key strength of our business, which cannot be easily replicated. The success of our business strategy and our future growth also depend on our ability to attract, train, retain and motivate skilled managerial, sales, administration, development and operating personnel. There can be no assurance that our existing personnel will be adequate or qualified to carry out our strategy, or that we will be able to hire or retain experienced, qualified employees to carry out our strategy. The loss of one or more of our key management or operating personnel, or the failure to attract and retain additional key personnel, could have a material adverse effect on our business, financial condition and results of operations.
We may not be able to achieve our sustainability targets to the extent we expect.
We have adopted a sustainability strategy which sets out our role in supporting the change to how food is produced and consumed, in line with the UN Sustainable Development Goals and our corporate purpose. Our ability to successfully implement, and engage other stakeholders in implementing, our sustainability strategy, will depend on a number of factors which are beyond our control, including the extent to which our suppliers and other stakeholders prioritize sustainability initiatives themselves in their own businesses, the reaction of retailers and our customers to our sustainability strategy and broader macroeconomic and social trends. Further, unanticipated events, including changes in our ability to source sustainably produced food ingredients, for example as a result of the conflict in Ukraine's effect on the global supply chain or as a result of challenges with regard to the environmental risks posed by certain ingredients, including palm oil and soy, may have an impact on the extent to which we can meet our own sustainability targets in any
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given year. If our expectations surrounding our sustainability strategy are not met and/or if consumers consider that we are not making sufficient progress with regards to our sustainability strategy, this could have an impact upon demand for our products and materially adversely affect our business, financial condition and results of operations.
Risks Related to Our Acquisition Strategy
We may not be able to consummate future acquisitions or successfully integrate acquisitions into our business, which could result in unanticipated expenses and losses.
Our acquisitions strategy is largely based on our ability to grow through acquisitions of additional businesses to build an integrated group. Consummating acquisitions of businesses, or our failure to integrate such businesses successfully into our existing businesses, could result in unanticipated expenses and losses. Furthermore, we may not be able to realize any of the anticipated benefits from completed acquisitions, including the Findus Switzerland and Fortenova acquisitions.
We anticipate that any future acquisitions we may pursue as part of our business strategy may be partially financed through additional debt or equity. Any future financial market disruptions or tightening of the credit markets may make it more difficult for us to obtain financing for acquisitions or increase the cost of obtaining financing. If new debt is added to current debt levels, or if we incur other liabilities, including contingent liabilities, in connection with an acquisition, the debt or liabilities could impose additional constraints and requirements on our business and operations, which could materially adversely affect our financial condition and results of operation. In addition, to the extent our ordinary shares are used for all or a portion of the consideration to be paid for future acquisitions, dilution may be experienced by existing shareholders.
In connection with our completed and future acquisitions, the process of integrating acquired operations into our existing group operations may result in unforeseen operating difficulties and may require significant financial resources that would otherwise be available for the ongoing development or expansion of existing operations. Some of the risks associated with acquisitions include:
•unexpected losses of key employees or customers of the acquired company;
•challenges with conforming the acquired company's standards, processes, procedures and controls with our operations;
•difficulties with coordinating new product and process development;
•hiring additional management and other critical personnel;
•inheriting historic legacy business decisions and risks together with the potential for litigation, arbitration and regulatory proceedings associated with them;
•negotiating with labor unions; and
•increasing the scope, geographic diversity and complexity of our current operations.
We may encounter unforeseen obstacles or costs in the integration of businesses that we may acquire. For example, an acquisition may trigger change of control clauses entered into by the previous owner in which case the counterparties to such agreements may terminate their agreements requiring the acquired business to enter into new contracts, potentially on less favorable terms. In addition, general economic and market conditions or other factors outside of our control could make our operating strategies difficult or impossible to implement. Any such unforeseen obstacles or costs or failure to implement operational improvements successfully and/or the failure of any operational improvements to deliver the anticipated benefits could have a material adverse effect on our results of operations and financial condition.
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Typically, when acquiring a business, the seller will provide certain warranties regarding its ownership of the acquired business as well as warranties regarding the business and operations of the acquired business. We may also obtain a warranty & indemnity insurance policy which provides coverage in respect of certain of these warranties. Any unexpected liabilities, individually or in the aggregate, which are not subject to such warranties or which are not recoverable under such insurance policy, could have a material adverse effect on the business, financial condition and results of operations of the acquired business following the acquisition, whether or not such liabilities result from breaches of warranties. There can be no assurance that we will be able to enforce any claims against the seller relating to breaches of such warranties or successfully claim under our insurance policy. Moreover, even if we are ultimately able to recover any amounts from the seller or the insurer, we may be required to temporarily bear some or all of the losses which may arise from any breaches of warranties, which could have a material adverse effect on our financial condition and results of operations.
We may be subject to antitrust regulations with respect to future acquisition opportunities.
Many jurisdictions in which we operate have antitrust regulations which involve governmental filings for certain acquisitions, impose waiting periods and require approvals by government regulators. Governmental authorities may seek to challenge potential acquisitions or impose conditions, terms, obligations or restrictions that may delay completion of the acquisition or materially reduce the anticipated benefits (financial or otherwise) as a result of applying the relevant antitrust regulations. Our inability to consummate potential future acquisitions or to receive the full benefits of such acquisitions because of antitrust regulations could limit our ability to execute on our acquisition strategy which could have a material adverse effect on our financial condition and results of operations.
We may face significant competition for acquisition opportunities.
There may be significant competition in some or all of the acquisition opportunities that we may explore. Such competition may for example come from strategic buyers, sovereign wealth funds, special purpose acquisition companies and public and private investment funds, many of which are well established and have extensive experience in identifying and completing acquisitions. Such competition may cause us to be unsuccessful in executing any acquisition or may result in a successful acquisition being made at a significantly higher price than would otherwise have been the case.
Any due diligence by us in connection with potential future acquisitions may not reveal all relevant considerations or liabilities of the target business, which could have a material adverse effect on our financial condition or results of operations.
We intend to conduct such due diligence as we deem reasonably practicable and appropriate based on the facts and circumstances applicable to any potential acquisition. The objective of the due diligence process will be to identify material issues which may affect the decision to proceed with any one particular acquisition target or the consideration payable for an acquisition. We also intend to use information revealed during the due diligence process to formulate our business and operational planning for, and our valuation of, any target company or business. While conducting due diligence and assessing a potential acquisition, we may rely on publicly available information, if any, information provided by the relevant target company to the extent such company is willing or able to provide such information and, in some circumstances, third party investigations where certain of our diligence efforts may be delayed or prohibited due to government or practical restrictions.
There can be no assurance that the due diligence undertaken with respect to an acquisition will reveal all relevant facts that may be necessary to evaluate such acquisition including the determination of the price we may pay for an acquisition target or to formulate a business strategy. Furthermore, the information provided during due diligence may be incomplete, inadequate or inaccurate. As part of the due diligence process, we will also make subjective judgments regarding the results of operations, financial condition and prospects of a potential target. If the due diligence investigation fails to correctly identify material issues and liabilities that may be present in a target company or business, or if we consider such material risks to be commercially acceptable relative to the opportunity, and we proceed with an acquisition, we may subsequently incur substantial impairment charges or other losses.
In addition, following any acquisition, we may be subject to significant, previously undisclosed liabilities of the acquired business that were not identified during due diligence and which could contribute to poor operational performance, undermine any attempt to restructure the acquired company or business in line with our business plan and have a material adverse effect on our financial condition and results of operations.
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Risks Related to Regulations
We could incur material costs for violations of, or liabilities under applicable directives, regulations and laws.
As a producer of food products for human consumption, we are subject to extensive regulation in our Key Markets and other countries in which we operate, at both a national and European Union level, that governs production, composition, manufacturing, animal welfare, sustainability, storage, transport, advertising, packaging, quality, marketing, including marketing to children, labeling, and distribution standards. It is unclear how such existing rules will be impacted following Brexit but there may be changes and further regulations that we must adhere to over time in the UK. Any failure to comply with applicable laws and regulations could subject us to civil remedies, including fines, injunctions, product recalls or asset seizures, as well as potential criminal sanctions.
In addition, our facilities and our suppliers’ facilities are subject to licensing, reporting requirements and official quality controls by numerous governmental authorities. These governmental authorities include European, national and local health, environmental, labor relations, sanitation, building, zoning, and fire and safety departments. Difficulties in obtaining or failure to obtain the necessary licenses or approval could delay or prevent the development, expansion or operation of a given production or warehouse facility. Any changes in those regulations may require us or our suppliers to implement new quality controls and possibly invest in new equipment, which could delay the development of new products and increase our operating costs.
All of our products and production facilities must comply with strict national and international hygiene regulations. Our facilities and our suppliers’ facilities are subject to regular inspection by authorities for compliance with hygiene regulations applicable to the sale, storage and manufacturing of foodstuffs and the traceability of genetically modified organisms, meats and other raw materials. Additionally, in certain jurisdictions, food business operators, including those in the food storage, processing and distribution sectors, are required to trace all food, animal feed, and food-producing animals under their control using registration systems that track the source of the products through the supply chain. Despite the precautions we undertake, should any non-compliance with such regulations be discovered during an inspection or otherwise, authorities may temporarily shut down any of our facilities, demand a product recall and/or levy a fine for such non-compliance.
Our facilities and operations are subject to numerous health, safety and environmental regulations, including local and national laws, European directives and regulations governing, among other things, water supply and use, water discharges, air emissions, chemical safety, solid and hazardous waste management and disposal, clean-up of contamination, energy use, noise pollution, and workplace health and safety together with globally recognized health and safety standards, including BRC and ISO compliance. Health, safety and environmental legislation and standards in Europe and elsewhere has generally become more comprehensive and restrictive and more rigid over time and enforcement has become more stringent. Failure to comply with applicable requirements, or the terms of required permits, can result in penalties or fines, clean-up costs, third party property damage, personal injury claims and damage to our reputation and relationships with our suppliers and retail customers. In addition, if health, safety and environmental laws and regulations in our Key Markets and the other countries in which we operate or from which we source raw materials and ingredients become more stringent in the future, the extent and timing of investments required to maintain compliance may exceed our budgets or estimates and may limit the availability of funding for other investments.
Furthermore, under some environmental laws, we could be liable for costs incurred in investigating or remediating contamination at properties we own or occupy, even if the contamination was caused by a party unrelated to us or was not caused by us, and even if the activity which caused the contamination was legal at the time it occurred. The discovery of previously unknown contamination, or the imposition of new or more burdensome obligations to investigate or remediate contamination at our properties or at third-party sites, could result in substantial unanticipated costs.
In certain jurisdictions, we are also subject to legislation designed to significantly reduce industrial energy use, water use, carbon dioxide emissions and the emission of ozone depleting compounds more generally. If we fail to meet applicable standards for energy use reduction or are unable to decrease, and in some cases eliminate, certain emissions within the applicable period required by relevant laws and regulations, we could be subject to significant penalties or fines and temporary or long-term disruptions to production at our facilities. We are also subject to increasing pressure to reduce waste in our supply chains and to reduce packaging overall, reduce the use of certain substances in our packaging, for example non-recyclable plastic and increase the recyclability of our products. Any failure to do so could see a reduction in our sales, the imposition of penalties or fines, retailers destocking as a result of not meeting increased standards all or any of which could have a material adverse effect on our business, financial condition, reputation and results of operations.
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Any failure to comply with any of the applicable directives, regulations and laws as set out in this section could have a material adverse effect on our business, financial condition, reputation and results of operations.
We are subject to a variety of regulatory schemes; failure to comply with applicable rules and regulations could adversely affect our business, results of operations and reputation.
Our operations are subject to a variety of regulatory schemes which require us to implement processes, procedures and controls to provide reasonable assurance that we are operating in compliance with applicable regulations, including the UK Bribery Act, the Modern Slavery Act 2015, the Foreign Corrupt Practices Act of 1977, the Trade Sanctions and Export Controls and the General Data Protection Regulation ("GDPR"). In addition, our business, including our ability to operate and continue to expand internationally, could be adversely affected if local and foreign laws or regulations are adopted, interpreted, or implemented in a manner that is inconsistent with our current business practices and that require rapid changes to these practices or our products, services, policies and procedures. For example, if we are prevented from purchasing certain products and raw materials as a result of the increasing sanctions currently being imposed on Russia and Belarus. If we are not able to adapt our business practices or strategies to changes in laws or regulations, it could subject us to liability, increased costs and reduced product demand. Additionally, the costs of compliance with laws and regulations may increase in the future as a result of changes in interpretation. Failure to comply (or any alleged failure to comply) with the regulations referenced above or any other regulations could result in civil and criminal, monetary and non-monetary penalties, and any such failure or alleged failure (or becoming subject to a regulatory enforcement investigation) could also damage our reputation, disrupt our business, result in loss of customers and cause us to incur significant legal and investigatory fees.
Changes in European privacy and data protection regulations could expose us to compliance risks and costs.
On May 25, 2018, the EU’s GDPR became enforceable. The GDPR relates to the collection, use, retention, security, processing and transfer of personally identifiable information of residents of European Economic Area (EEA) countries, and we are subject to these heightened standards. The GDPR created a range of new compliance obligations and imposes substantial fines for breaches and violations (up to the greater of €20 million or 4% of our annual global revenue). Furthermore, there is uncertainty with respect to compliance with privacy and data protection laws and regulations, including the GDPR, because such laws and regulations are continuously evolving and developing and may be interpreted and applied differently from country to country and may create inconsistent or conflicting requirements. Our efforts to comply with privacy and data protection laws in all our markets may impose significant costs and challenges that are likely to increase over time, in particular with Switzerland and other non-EU countries in which we operate. Since January 1, 2021 the GDPR has ceased to have direct effect in the UK but the Data Protection Act 2018 alongside the UK GDPR ensures that the UK has in effect the same high standards for data protection in place as under the GDPR. As with other EU-origin laws, how these are interpreted and applied by the UK post Brexit might change and differ from the EU approach over time.
Risks Related to Financial Management
We have risks related to our indebtedness, including our ability to withstand adverse business conditions and to meet our debt service obligations.
Our ability to make payments on and to refinance our indebtedness, and to fund our operations, working capital and capital expenditures, depends on our ability to generate cash. To a certain extent, our cash flow is subject to general economic, industry, financial, competitive, operating, legislative, regulatory and other factors, many of which are beyond our control.
We cannot assure you that our business will generate sufficient cash flow from operations or that future sources of cash will be available to us in an amount sufficient to enable us to pay amounts due on our indebtedness or to fund our other liquidity needs.
Additionally, if we incur additional indebtedness in connection with any future acquisitions or development projects or for any other purpose, our debt service obligations could increase. We may need to refinance all or a portion of our indebtedness before maturity. Our ability to refinance our indebtedness or obtain additional financing will depend on, among other things:
• our financial condition and market conditions at the time;
• restrictions in the agreements governing our indebtedness;
• general economic and capital market conditions;
• the availability of credit from banks or other lenders;
• investor confidence in us; and
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• our results of operations.
In addition, a significant part of our indebtedness includes provisions with respect to maintaining and complying with certain financial and operational covenants. Our ability to comply with these covenants may be affected by events beyond our control. A breach of one or more of these covenants could result in an event of default and may give rise to an acceleration of the debt. In the longer term, such breach of covenants could have a material adverse effect on our operations and cash flows.
Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.
An increase in market interest rates may increase our interest expense arising on our existing and future floating rate indebtedness. Pursuant to the terms of the restated Senior Facilities Agreement dated November 8, 2022, the interest rate paid on indebtedness incurred under our senior loans and revolving credit facility varies based on a fixed margin over a base reference rate. If interest rates increase, our debt service obligations on the variable rate indebtedness will increase even though the amount borrowed remains the same, and our net income and cash flows, including cash available for operational or strategic purposes, will correspondingly decrease. Pursuant to our interest rate hedging policy, we may enter into interest rate derivatives that may involve the exchange of floating for fixed rate interest payments in order to reduce interest rate volatility. However, we may not maintain interest rate swaps with respect to all of our variable rate indebtedness, and any swaps we enter into may not fully mitigate our interest rate risk.
Our indebtedness is subject to changes in interest reference rates.
Pursuant to the terms of the restated Senior Facilities Agreement dated November 8, 2022, the interest rate paid on indebtedness incurred under senior loans and our revolving credit facility varies based on a fixed margin over a base reference rate. Fallback language has been included in the restated Senior Facilities Agreement in relation to our revolving credit facility, to include use of risk-free interest rates (RFR) when the existing rates are phased out. The Sterling Overnight Index Average (“SONIA”) has replaced GBP LIBOR and is effective immediately. The Secured Overnight Financing Rate (“SOFR”) will replace U.S. Dollar LIBOR and Swiss Average Rate Overnight (“SARON”) will replace CHF LIBOR.
The restated Senior Facilities Agreement dated November 8, 2022 uses term SOFR as the reference rate for USD denominated Term Loans. The EUR denominated term loans continue to use EURIBOR as their reference rate as there are no current plans to phase this out. If EURIBOR ceases to exist, we will need to renegotiate the interest rate payable on the Euro denominated portion of our Senior Facilities Agreement with our lenders.
We are exposed to exchange rate risks.
We are exposed to exchange rate risk. Our reporting currency is the Euro. We are exposed to foreign exchange translation risk as we convert the results of our non-Euro businesses into our reporting currency of Euro. Pursuant to Company foreign exchange hedging policy, we have converted our USD term loan to EUR designated as a cash flow hedge. We are exposed to transactional exchange rate risk as many of our raw material purchases may be denominated in non-functional currencies of the purchasing entity, predominantly U.S. Dollars and Euro. Company policy is to reduce this risk by using foreign exchange forward contracts that are designated as cash flow hedges. Hedging arrangements are subject to changes in Company policy, may not fully protect us against currency fluctuations and may or not achieve hedge effectiveness. Fluctuations and sustained strengthening of non-functional currencies against the functional currency of the operating entities may materially adversely affect our business, financial condition and results of operations.
Changes to our payment terms with customers and suppliers may materially adversely affect our cash flows.
We may experience significant pressure from our key suppliers to reduce trade payable terms. At the same time, we may experience pressure from our customers to extend trade receivable terms. European and country legislation can also set conditions and restrictions related to payment terms between suppliers and purchasers at different levels of the supply chain, for example, Directive 2019/633 on unfair trading practices in business to business relationships in the agricultural and food supply chain, which has been widely implemented across the European Union. Any failure to comply with applicable laws and regulations could subject us to civil remedies, including fines, which could have a material adverse effect on our business, financial condition and results of operations. Any such changes in commercial arrangements regarding trade payable and trade receivable payment terms, as a result of changes in legislation or otherwise, may have a material adverse effect on our business, financial condition and results of operations.
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Dividend payments and purchases made pursuant to announced share repurchase programs may have an impact on our cash flows and our ability to meet our debt service obligations.
We do not currently intend to pay dividends on our ordinary shares. We intend to pay such dividends only at such times, if any, and in such amounts, if any, as the board determines appropriate and in accordance with applicable law, and then only if we receive dividends from our operating subsidiaries. The board from time to time has announced share repurchase programs as set out further in the Financing and Acquisition section below. Our ability to make payments on and to refinance our indebtedness, and to fund our operations, working capital and capital expenditures, depends on cash flows. A significant part of our indebtedness includes provisions with respect to maintaining and complying with certain financial and operational covenants. In the event that we were to pay any dividends or to repurchase shares pursuant to any announced share repurchase programs, such dividends and share repurchases may have an impact on our cash flows and on our ability to make repayments on and refinance our indebtedness and to comply with those financial covenants.
An impairment of the carrying value of goodwill or other intangible assets could negatively affect our consolidated operating results and net worth.
Goodwill represents amounts arising from acquisitions and is the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired. Intangible assets can include computer software, brands, customer relationships and other acquired intangibles as of the acquisition date. Goodwill and other intangibles expected to contribute indefinitely to our cash flows are not amortized but must be evaluated by management at least annually for impairment. If carrying value exceeds its recoverable amount, the intangible is considered impaired and is reduced to recoverable amount via a charge to earnings. Factors outside of our control which could result in an impairment include, but are not limited to: (i) reduced demand for our products; (ii) higher commodity prices; (iii) lower prices for our products or increased marketing as a result of increased competition; and (iv) significant disruptions to our operations as a result of both internal and external events. Should the value of one or more of the acquired intangibles become impaired, our consolidated profit or loss and net assets may be materially adversely affected. As of December 31, 2022, the carrying value of intangible assets totaled €4,559.2 million, of which €2,101.6 million was goodwill and €2,457.6 million represented brands, computer software, customer relationships and other acquired intangibles compared to total assets of €6,326.1 million.
We are exposed to risks in connection with our treasury and cash management activities.
From time to time we may acquire, various investment securities as part of our cash management and treasury activities. Factors beyond our control can significantly and adversely influence the fair value of our investment securities, including, but not limited to, the risk that the counterparty may not return the funds and that movements in financial, currency or interest rate markets may have an impact on the value of the investment securities. For example, fixed-rate securities are generally subject to decreases in market value when interest rates rise. Additional factors include, but are not limited to, rating agency downgrades of the securities, defaults by the issuer or individual borrowers with respect to the underlying securities, and instability in the credit markets. Any of the foregoing factors could cause other-than-temporary impairment in future periods and result in realized losses. The process for determining whether impairment is other-than-temporary may require, subjective judgments about the future financial performance of the issuer and any collateral underlying the security in order to assess the probability of receiving all contractual principal and interest payments on the security.
In the ordinary course of treasury activities, whether entering into derivative hedging arrangements, cash account deposits or otherwise, we are exposed to the risk that the financial counterparty with whom we have conducted dealings will not be able to perform the agreed services and as a result may have a material adverse effect on our business, financial condition and results of operation.
We face risks associated with certain pension obligations.
The Company has a mixture of partially funded and unfunded post-employment defined benefit plans in Germany, Sweden, Switzerland and Austria as well as defined benefit indemnity arrangements in Italy and France. Deterioration in the value or lower than expected returns on investments may lead to an increase in our obligation to make contributions to these plans.
The obligations that arise from these plans are calculated using actuarial valuations which are based on assumptions linked to the performance of financial markets, interest rates and legislation which changes over time. Adverse changes to these assumptions will impact the obligations recognized and would lead to higher cash payments in the long term.
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Our obligation to make contributions to the pension plans could reduce the cash available for operational and other corporate uses and may have a materially adverse impact on our operations, financial condition and liquidity.
We are exposed to risks related to our financial arrangements with respect to receivables factoring, reverse factoring and supply chain financing.
We may enter into factoring, reverse factoring or supply chain financing arrangements with financial institutions from time to time to sell certain of our accounts receivables from customers without recourse or to otherwise finance aspects of our supply chain. If we were to cease entering into such arrangements, our operating results, financial condition and cash flows could be adversely impacted. However, by entering into these arrangements we are exposed to additional risks. If any of these financial institutions or other counterparties experiences financial difficulties or is otherwise unable to honor the terms of our factoring, reverse factoring or supply chain financing arrangements with them, we may experience material financial losses due to the failure of such arrangements which could have an adverse impact upon our operating results, financial condition and cash flows.
We are a holding company whose principal source of operating cash is the income received from our subsidiaries.
We are a holding company and rely on the earnings and cash flows of our subsidiaries, which are paid to us by our subsidiaries in the form of dividends and other payments or distributions, to meet our debt service and other obligations, or, if applicable, to pay dividends on our ordinary shares. The ability of our subsidiaries to pay dividends or make other payments or distributions to us will depend on their respective operating results and may be restricted by, among other things, the laws of their jurisdiction of organization (which may limit the amount of funds available for the payment of dividends and other distributions to us), their constitutional documents, documents governing any existing indebtedness and the covenants of any future outstanding indebtedness that our subsidiaries incur, and other factors which may be outside our control.
The Founders and/or the Founder Entities may in the future enter into and/or amend related party transactions with us, which may give rise to conflicts of interest between us and some or all of the Founders and/or the Directors.
Our founders, Sir Martin Franklin and Noam Gottesman (the “Founders”) and/or one or more of their affiliates, including Mariposa Acquisition II, LLC and TOMS Acquisition I LLC (the “Founder Entities”) may in the future enter into and/or amend agreements with us that are not currently under contemplation. While we have implemented procedures to ensure we will not enter into any related party transaction without the approval of our Audit Committee, it is possible that the entering into of such an agreement might raise conflicts of interest between us and some or all of the Founders and/or the directors.
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General Risk Factors
We are subject to the risk of disruptions, failures or security breaches of our information technology systems, or those of third parties on which we rely.
We are increasingly dependent upon on our information technology systems for communication among our suppliers, manufacturing plants, distribution functions, headquarters and customers. Our performance depends on the availability of accurate and timely data and other information from key software applications to aid day-to-day business and decision-making processes. We may be adversely affected if our controls designed to manage information technology operational risks fail to contain such risks. If we do not allocate and effectively manage the resources necessary to build and sustain the proper technology infrastructure and to maintain the related automated and manual control processes, we could be subject to adverse effects including billing and collection errors, business disruptions, in particular concerning our manufacturing and logistics functions, issues with or errors in system's maintenance and security and migration of applications to the cloud and security breaches. Any disruption caused by failings in our information technology infrastructure equipment or of communication networks, could delay or otherwise impact our day-to-day business and decision-making processes and negatively impact our performance. In addition, we are reliant on third parties to service our IT infrastructure. Failure on their part to provide good and timely service may have an adverse impact on our information technology network. We rely on 3rd parties for the support and maintenance of our software solutions and furthermore we do not control the facilities or operations of our suppliers or third parties. An interruption of operations at any of their or our facilities or any failure by them to deliver on their contractual commitments may have a material adverse effect on our business, financial condition and results of operations.
Although our information technology systems are protected through physical and software safeguards, it is difficult to protect against the possibility of damage or breach created by cyber-attacks or other security attacks in every potential circumstance that may arise. In addition, governmental authorities have warned that cybercriminals will take advantage of the uncertainty created by COVID-19, federal and state mandated quarantines and recent international conflicts to launch cybersecurity attacks. The risks could include more frequent malicious cybersecurity and fraudulent activities, as well as schemes which attempt to take advantage of employees’ use of various technologies to enable remote work activities. We believe the COVID-19 outbreak and conflict in Ukraine have increased our cyber risk profile, but we are unable to predict the extent or impacts of those risks at this time. As cyber-attacks are increasing in frequency and sophistication, it becomes even more difficult to protect against a breach of our information technology systems. Cybersecurity incidents including malfeasance, security breaches, computer viruses or other malicious codes, ransomware, unauthorized access attempts, denial of service attacks, phishing, hacking, and other cyberattacks that impact the availability, reliability, speed, accuracy, or other proper functioning of these information technology systems could have a significant impact on our operations. If we are unable to prevent physical and electronic break-ins, cyber-attacks and other information security breaches, we may suffer financial and reputational damage, be subject to litigation or incur remediation costs or penalties because of the unauthorized disclosure of confidential information belonging to us or to our customers, suppliers or employees. The mishandling or inappropriate disclosure of non-public sensitive or protected information could lead to the loss of intellectual property, negatively impact planned corporate transactions or damage our reputation and brand image. Misuse, leakage or falsification of legally protected information could also result in a violation of data privacy laws and regulations and have a negative impact on our reputation, business, financial condition and results of operations.
While, to date, we have not had a significant cybersecurity breach or attack that had a material impact on our business or operations, there can be no assurance that our efforts to maintain the security and integrity of our information technology systems will be effective or that attempted breached would not be successful in the future.
Changes in accounting standards and subjective assumptions, estimates and judgments by management related to complex accounting matters could significantly affect our financial results.
Generally accepted accounting principles and related accounting pronouncements, implementation guidelines and interpretations with regard to a wide range of matters that are relevant to our business, including but not limited to revenue recognition, leases, estimating valuation allowances and accrued liabilities (including allowances for returns, doubtful accounts and obsolete and damaged inventory), accounting for income taxes, valuation of long-lived and intangible assets and goodwill, stock-based compensation and loss contingencies, are highly complex and involve many subjective assumptions, estimates and judgments by our management. Changes in these rules or their interpretation or changes in underlying assumptions, estimates or judgments by our management could significantly change our reported or expected financial performance, and could have a material adverse effect on our business.
Management continues to assess new accounting pronouncements and their impact on the Company prior to their adoption dates.
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We may incur liabilities that are not covered by insurance.
While we seek to maintain appropriate levels of insurance, not all claims are insurable, and we may experience major incidents of a nature that are not covered by insurance. Our insurance policies cover, among other things, employee-related accidents and injuries, property damage and liability deriving from our activities. In particular, our Lowestoft and Bremerhaven manufacturing facilities are situated in regions that have historically been affected by flooding. We may not be able to obtain flood insurance on reasonable terms or at all with respect to those facilities. We maintain an amount of insurance protection that we believe is adequate, but there can be no assurance that such insurance will continue to be available on acceptable terms or that our insurance coverage will be sufficient or effective under all circumstances and against all liabilities to which we may be subject. We could, for example, be subject to substantial claims for damages upon the occurrence of several events within one calendar year. In addition, our insurance costs may increase over time in response to any negative development in our claims history or due to material price increases in the insurance market in general which could have a material impact on our business.
If we fail to or are unable to implement and maintain effective internal controls over financial reporting, the accuracy and timeliness of our financial reporting may be adversely affected.
We are subject to reporting obligations under U.S. securities laws. The SEC, as required under Section 404 of the Sarbanes-Oxley Act of 2002, has adopted rules requiring every public company to include a report of management on the effectiveness of such company's internal control over financial reporting in its annual report. In addition, an independent registered public accounting firm must issue an attestation report on the effectiveness of the company's internal control over financial reporting.
We recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and our management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. If we fail to maintain effective internal control over financial reporting in the future, we and our independent registered public accounting firm may not be able to conclude that we have effective internal control over financial reporting at a reasonable assurance level. This could in turn result in the loss of investor confidence in the reliability of our financial statements. Furthermore, we have incurred and anticipate that we will continue to incur considerable costs and use significant management time and other resources in an effort to comply with Section 404 and other requirements of the Sarbanes-Oxley Act. If we are not able to continue to meet the requirements of Section 404 in a timely manner or with adequate compliance, we might be subject to sanctions or investigation by the SEC, the NYSE or other regulatory authorities. Any such action could adversely affect the accuracy and timeliness of our financial reporting.
Risks Related to our Ordinary Shares
Outstanding equity award grants under our LTIP could require us to issue additional ordinary shares. Therefore, you may experience significant dilution of your ownership interests and the future issuance of additional ordinary shares, or the anticipation of such issuances, could have an adverse effect on our share price.
We currently have 12,201,795 ordinary shares available for issuance under our LTIP. Additionally, as of February 20, 2023, we have 5,222,266 equity awards that have either been issued to participants or been granted and are outstanding under the LTIP, which may be converted into ordinary shares subject, in most cases, to meeting certain performance conditions.
Our ordinary share price may be volatile, and as a result, you could lose a significant portion or all of your investment.
The market price of the ordinary shares on the NYSE may fluctuate as a result of several factors, including the following:
•variations in our quarterly operating results;
•volatility in our industry, the industries of our customers and suppliers and the global securities markets;
•risks relating to our business and industry, including those discussed above;
•strategic actions by us or our competitors;
•reputational damage from unsafe or poor-quality food products;
•actual or expected changes in our growth rates or our competitors’ growth rates;
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•investor perception of us, the industry in which we operate, the investment opportunity associated with the ordinary shares and our future performance;
•addition or departure of our executive officers;
•changes in financial estimates or publication of research reports by analysts regarding our ordinary shares, other comparable companies or our industry generally;
•trading volume of our ordinary shares;
•future issuances or purchases of our ordinary shares by us or our shareholders;
•domestic and international economic, legal and regulatory factors unrelated to our performance; or
•the release or expiration of lock-up or other transfer restrictions on our outstanding ordinary shares.
Furthermore, the stock markets often experience significant price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political and market conditions such as recessions or interest rate changes may cause the market price of ordinary shares to decline.
If securities or industry analysts do not publish or cease publishing research reports about us, if they adversely change their recommendations regarding our ordinary shares or if our operating results do not meet their expectations, the price of our ordinary shares could decline.
The trading market for our ordinary shares will be influenced by the research and reports that industry or securities analysts may publish about us, our business, our market or our competitors. Securities and industry analysts currently publish limited research on us. If there is limited or no securities or industry analyst coverage of our company, the market price and trading volume of our ordinary shares would likely be negatively impacted. Moreover, if any of the analysts who may cover us downgrade our ordinary shares, provide more favorable relative recommendations about our competitors or if our operating results or prospects do not meet their expectations, the market price of our ordinary shares could decline. If any of the analysts who may cover us were to cease coverage or fail to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause our share price or trading volume to decline.
As a foreign private issuer, we are subject to different U.S. securities laws and NYSE governance standards than domestic U.S. issuers, which may afford less protection to holders of our ordinary shares. 
As a foreign private issuer, the rules governing the information that we disclose differ from those governing U.S. corporations pursuant to the Exchange Act. Although we report quarterly financial results and certain material events, we are not required to file quarterly reports on Form 10-Q or provide current reports on Form 8-K disclosing significant events within four days of their occurrence and our quarterly or current reports may contain less information than required for domestic issuers. In addition, we are exempt from the SEC’s proxy rules, and proxy statements that we distribute will not be subject to review by the SEC. Our exemption from Section 16 rules regarding sales of ordinary shares by insiders means that you will have less data in this regard than shareholders of U.S. companies that are subject to the Exchange Act. As a result, you may not have all the data that you are accustomed to having when making investment decisions with respect to U.S. public companies.
As a foreign private issuer, we are exempt from complying with certain corporate governance requirements of the NYSE applicable to a U.S. issuer, including the requirement that a majority of our board of directors consist of independent directors. As the corporate governance standards applicable to us are different than those applicable to domestic U.S. issuers, you may not have the same protections afforded under U.S. law and the NYSE rules as shareholders of companies that do not have such exemptions. See Item 16G: Corporate Governance.
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We may lose our foreign private issuer status in the future, which could result in significant additional costs and
expenses.
We could cease to be a foreign private issuer if a majority of our outstanding voting securities are directly or indirectly held of record by U.S. residents and we fail to meet additional requirements necessary to avoid loss of foreign private issuer status. The regulatory and compliance costs to us under U.S. securities laws as a U.S. domestic issuer may be significantly higher than costs we incur as a foreign private issuer, which could have a material adverse effect on our business and financial results.
The rights of shareholders under British Virgin Islands law differ from those under United States law, you
may have fewer protections as a shareholder.
Our corporate affairs are governed by our Memorandum and Articles of Association, the BVI Business Companies Act, 2004 (as amended, the “BVI Act”) and the common law of the British Virgin Islands. The rights of shareholders to take legal action against our directors, actions by minority shareholders and the fiduciary responsibilities of our directors under British Virgin Islands law are to a large extent governed by the common law of the British Virgin Islands and by the BVI Act. The common law of the British Virgin Islands is derived in part from comparatively limited judicial precedent in the British Virgin Islands as well as from English common law, which has persuasive, but not binding, authority on a court in the British Virgin Islands. The rights of our shareholders and the fiduciary responsibilities of our directors under British Virgin Islands law are not as clearly established as they would be under statutes or judicial precedents in some jurisdictions in the United States. In particular, the British Virgin Islands has a less developed body of securities laws as compared to the United States, and some states (such as Delaware) have more fully developed and judicially interpreted bodies of corporate law. As a result of the foregoing, holders of our ordinary shares may have more difficulty in protecting their interests through actions against our management, directors or major shareholders than they would as shareholders of a U.S. company. See Item 16G: Corporate Governance.
The laws of the British Virgin Islands provide limited protection for minority shareholders. Minority shareholders
will have limited or no recourse if they are dissatisfied with the conduct of our affairs
Under the laws of the British Virgin Islands, there is limited statutory law for the protection of minority shareholders other than the provisions of the BVI Act dealing with shareholder remedies (as summarized under Item 16G: Corporate Governance). The principal protection under statutory law is that shareholders may bring an action to enforce the constituent documents of the Company and are entitled to have the affairs of the Company conducted in accordance with the BVI Act and the memorandum and articles of association of the Company. As such, if those who control the Company have persistently disregarded the requirements of the BVI Act or the provisions of the Company’s memorandum and articles of association, then the courts will likely grant relief. Generally, the areas in which the courts will intervene are the following: (i) an act complained of which is outside the scope of the authorized business or is illegal or not capable of ratification by the majority; (ii) acts that constitute fraud on the minority where the wrongdoers control the Company; (iii) acts that infringe on the personal rights of the shareholders, such as the right to vote; and (iv) acts where the Company has not complied with provisions requiring approval of a special or extraordinary majority of shareholders, which are more limited than the rights afforded minority shareholders under the laws of many states in the United States.
To the extent allowed by law, the rights and obligations among or between us, any of our current or former directors, officers and employees and any current or former shareholder will be governed exclusively by the laws of the British Virgin Islands and subject to the jurisdiction of the British Virgin Islands courts, unless those rights or obligations do not relate to or arise out of their capacities as such. Although there is doubt as to whether United States courts would enforce these provisions in an action brought in the United States under United States securities laws, these provisions could make judgments obtained outside of the British Virgin Islands more difficult to enforce against our assets in the British Virgin Islands or jurisdictions that would apply British Virgin Islands law.
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British Virgin Islands companies may not be able to initiate shareholder derivative actions, thereby depriving
shareholders of one avenue to protect their interests
British Virgin Islands companies may not have standing to initiate a shareholder derivative action in a federal court of the United States. The circumstances in which any such action may be brought, and the procedures and defenses that may be available in respect of any such action, may result in the rights of shareholders of a British Virgin Islands company being more limited than those of shareholders of a company organized in the United States. Accordingly, shareholders may have fewer alternatives available to them if they believe that corporate wrongdoing has occurred. The British Virgin Islands courts are also unlikely to recognize or enforce judgments of courts in the United States based on certain liability provisions of United States securities law or to impose liabilities, in original actions brought in the British Virgin Islands, based on certain liability provisions of the United States securities laws that are penal in nature. There is no statutory recognition in the British Virgin Islands of judgments obtained in the United States, although the courts of the British Virgin Islands will generally recognize and enforce the non-penal judgment of a foreign court of competent jurisdiction without retrial on the merits. This means that even if shareholders were to sue us successfully, they may not be able to recover anything to make up for the losses suffered.
Shareholders may experience a dilution of their percentage ownership if we make non-pre-emptive offers of ordinary shares in the future.
We have opted-out of statutory pre-emptive rights pursuant to the terms of our Memorandum and Articles of Association. No pre-emption rights therefore exist in respect of future issuance of ordinary shares whether or not for cash. Should we decide to offer additional ordinary shares on a non-pre-emptive basis in the future, this could dilute the interests of shareholders and/or have an adverse effect on the market price of the ordinary shares.
Risks Related to Taxation
Changes in tax law and practice may reduce any net returns for shareholders.
The tax treatment of the Company, our shareholders and any subsidiary of ours, (including Iglo and its subsidiaries), any special purpose vehicle that we may establish and any other company which we may acquire are all subject to changes in tax laws or practices in the British Virgin Islands, the United Kingdom,UK, the U.S. and any other relevant jurisdiction. Any change may reduce the value of your investment in our ordinary shares.
Failure to maintain our tax status may negatively affect our financial and operating results and shareholders.
If we were to be considered to be resident in or to carry on a trade or business within the United States for U.S. taxation purposes or in any other country in which we are not currently treated as having a taxable presence, we could be subject to U.S. income tax or taxes in such other country on all or a portion of our profits, as the case may be, which may negatively affect our financial and operating results.
Taxation of returns from subsidiaries may reduce any net return to shareholders.
We and our subsidiaries are subject to taxes in a number of jurisdictions. It is possible that any return we receive from any present or future subsidiary may be reduced by irrecoverable withholding or other local taxes, including those arising from future changes in legislation and other local rules and this may reduce the value of your investment in our ordinary shares.


If any dividend is declared in the future and paid in a foreign currency, U.S. holders may be taxed on a larger amount in U.S. Dollars than the U.S. Dollar amount actually received.
U.S. holders will be taxed on the U.S. Dollar value of dividends at the time they are received, even if they are not converted to U.S. Dollars or are converted at a time when the U.S. Dollar value of the dividends has fallen. The U.S. Dollar value of the payments made in the foreign currency will be determined for tax purposes at the spot rate of the foreign currency to the U.S. Dollar on the date the dividend distribution is deemed included in such U.S. holder’s income, regardless of whether or when the payment is in fact converted into U.S. Dollars.
We may be a “passive foreign investment company” for U.S. federal income tax purposes
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Item 4.    Information on the Company
A.    History and adverse tax consequences could apply to U.S. investors.
The U.S. federal income tax treatment of U.S. holders will differ depending on whether or not the Company is considered a passive foreign investment company (“PFIC”).
In general, we will be considered a PFIC for any taxable year in which: (i) 75 percent or more of our gross income consists of passive income; or (ii) 50 percent or moreDevelopment of the average quarterly market value of our assets in that year are assets that produce, or are held for the production of, passive income (including cash). For purposes of the above calculations, if we, directly or indirectly, own at least 25 percent by value of the stock of another corporation, then we generally would be treated as if we held our proportionate share of the assets of such other corporation and received directly our proportionate share of the income of such other corporation. Passive income generally includes, among other things, dividends, interest, rents, royalties, certain gains from the sale of stock and securities, and certain other investment income.Company
We do not believe that we will be a PFIC for the current year. However, we can provide no assurance that we will not be a PFIC for any subsequent year.

Item 4.Information on the Company
A.History and Development of the Company
We are theEurope's leading manufacturer and distributor of branded frozen foods in Western Europecompany based on net sales value. We were incorporated with limited liability under the laws of the British Virgin Islands under the BVI Companies Act on April 1, 2014 under the name Nomad Holdings Limited by the Founder Entities. We were formed to undertake an acquisition of a target company or business. We completed our initial public offering in the United Kingdom on April 15, 2014 (the “2014 Offering”), raising gross proceeds of $500 million, and were listed on the London Stock Exchange (“LSE”). In connection with the 2014 Offering, we issued 48,500,000 ordinary shares and 1,500,000 Founder Preferred Shares, at a price of $10.00 per ordinary share and Founder Preferred Share. Purchasers in the 2014 Offering also received one warrant (the “Warrants”) to purchase ordinary shares for every ordinary share purchased in the 2014 Offering. The Warrants were exercisable on the basis of three warrants per ordinary share at an exercise price of $11.50 per whole ordinary share.
On June 1, 2015, we consummated our initial acquisition by purchasing Iglo Foods Holdings Limited, a leading frozen food company in Europe from a private equity fund advised by Permira Advisers LLP (the "Permira Funds"), for €2.6 billion, and subsequently changed our name to Nomad Foods Limited. The Iglo Group traces its roots back to the 1920s when Clarence Birdseye patented the Birds Eye Plate Froster for freezing fish. After the acquisition of the Birds Eye patents by General Foods in the 1930s, the Birds Eye brand was launched. In the 1940s, Unilever acquired the rights to the Birds Eye brand throughout the world, except for the United States, and in the 1950s Birds Eye became 100% Unilever owned. The Iglo brand was launched in Belgium in 1956 and was introduced by Unilever in Germany in 1961. In the 1960s, Unilever acquired the Findus brand in Italy and San Marino. In 2006, the Permira Funds acquired the Birds Eye and Iglo brands and frozen foods businesses from Unilever, which, at the time, retained the Italian frozen food business under the Findus brand. Following the buyout, the Iglo Group refocused its business on its main product categories, initiated improvements in its supply chain and implemented cost savings. In October 2010, the Iglo Group acquired C.S.I. Compagnia Surgelati Italiana S.p.A., the owner of the Findus brand in Italy and San Marino, from Unilever.


On November 2, 2015, we purchased the Findus Group which comprises the continental European businesses of the Findus Parent in Sweden, Norway, Finland, Denmark, France, Spain and Belgium relating to the Findus, Lutosa and La Cocinera brands for approximately £500 million, consisting of £415 million in cash and 8,378,380 ordinary shares (the “Findus Consideration Shares”). This transaction allowed us to unify the Findus brand (excluding Switzerland), and together with the strong Iglo platform, further our efforts to drive innovation, introduce new meal options, and conduct marketing initiatives aimed at bringing more consumers across Europe to the frozen foods aisles. In addition, the geographic footprint of the operations included in the Findus Acquisition complements and extends our footprint throughout Europe.
On January 17, 2018 we entered into an agreement to acquire Green Isle Foods Ltd. including the Goodfella's and San Marco brands, in an all cash deal valued at £200 million (approximately €225 million). We anticipate this acquisition to be completed in the second quarter 2018 and we expect this will enlarge our portfolio of brands to include the number one and number two market share positions within the frozen pizza category in Ireland and the UK, a successful frozen private label pizza business, and two frozen pizza manufacturing facilities.
Our principal executive offices are located at No. 1 New Square, Bedfont Lakes Business Park, Feltham, Middlesex, TW14 8HA. Our telephone number is +(44) 208 918 3200 and our fax number is +(44) 208 918 3491. Our registered office is located at Nemours Chambers,Ritter House, Wickhams Cay II, Road Town, Tortola, VG1110 British Virgin Islands and its telephone number is (284) 852-7900. Our registered agent in the United States is Mariposa Capital, LLC, 500 South Pointe Drive, Suite 240 Miami Beach, Florida 33139.
The SEC maintains an Internet website that contains reports, proxy and information statements, and other information regarding the Company and other issuers that file electronically with the SEC. The SEC's Internet website address is http://www.sec.gov. Our Internet website can be found at www.nomadfoods.com.
See Item 5B: Operating and Financial Review and Prospects—Liquidity and Capital Resources for information regarding our capital expenditures for the past three fiscal years and principal capital expenditures currently in progress.

B.    Business Overview

B.Business Overview
Our Company
We are theEurope's leading branded frozen food player in Western Europecompany with a portfolio of best-in-class food brands within the frozen category, including fish, vegetables, poultry, meals, pizza and meals (excluding ice cream).cream. Our products are sold primarily through large grocery retailers under the “Birds Eye” brand “Birds Eye” in the United KingdomUK and Ireland, “Findus”“Findus” in Italy, San Marino, France, Spain, Sweden, Switzerland and Norway, “Iglo”“iglo” in Germany and other continental markets, “La Cocinera” in Spain, "Ledo" in south-eastern Europe and “La Cocinera”"Frikom" in Spain. According to Euromonitor,Serbia and North Macedonia. The majority of our share ofproducts are in the savory frozen food market, where according to Nielsen, our market share in Western Europethe countries we operate stood at 13.8%18% in 2017 (2.4 times greater than2022 (2021: 18%, figures exclude markets covered by the nearest competitor)Fortenova acquisition). WeFor the categories in which we operate, we maintain the number one position in tensixteen European geographies, namely the United Kingdom,UK, Italy, Germany, France, Sweden, France, Austria, Spain,Norway, Switzerland, Belgium, The Netherlands, Portugal, Ireland, Croatia, Serbia, Bosnia & Herzegovina and Hungary.North Macedonia. The countries representing our top six markets collectively-United Kingdom,for branded goods, collectively UK, Italy, Germany, France, Sweden Norway and France,Austria, represented approximately 68%80% of the total Western European Savory frozen food markets. For a description of the principal markets in which we compete and related revenue, see Note 5 “Segment reporting” to our audited consolidated financial statements which appear elsewhere in this annual report.
Savory Frozen Food Market
The European savory frozen food market is served by a number of national and international producers, both with branded and private label offerings, and within single or multiple product categories. We have the broadest participation by category and geography in Europe.
According to Euromonitor,Nielsen, the totalmarket for savory frozen food market in Westerncategories which the Company competes in across Europe is estimated to have generated €25€19 billion in retail sales value in 2017. The frozen food business requires specialized manufacturing, logistics and distribution functions. There is also a high cost associated with building brand health, brand awareness and consumer trust. As a result, there are high barriers for profitable entry into the frozen food market in general and the branded segment in particular.2022.
Frozen food products are particularly attractive because they address important global food trends. Consumers increasingly prefer products that allow them to prepare meals quickly and with confidence and expect products to be healthy and good value for money. In addition, consumers are increasingly focused on reducing food waste. Frozen food products can have all of these characteristics. They are easy to prepare, they reduce the need for artificial preservatives, they are often better value for money than chilled alternatives and they reduce waste at all points in the supply chain and also in-home (due to the long shelf life, and the ease of portionability).
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Over the last fiveseven years notwithstanding the volatile macro-economic environment, the Western European savory frozen food market has grown on average 0.9%2% per year, while experiencing a huge spike in category demand throughout the COVID pandemic, driven by the aforementioned ability to address global food consumption trends. Furthermore, the amount of space that frozen food as a category occupies within the grocery retail environment is relatively stable due to the fixed amount of freezer space at the retailer that is not exposed to reductions in shelf space in favor of other categories or formats, as can be the case in shelf-stable parts of the retailer.
Our Brands
Our brands are household names with long histories and local heritage in their respective markets. Our Birds Eye brand was established in 1922 and is primarily marketed in the United KingdomUK and Ireland. The Findus brand, which is marketed in Italy, France, Spain, Sweden, Switzerland and Norway, was formed in Italy in 1941 and has a loyal following in each of its respective geographies. Iglo,The iglo brand, founded in 1956, has a long-standing history and is marketed in Germany and other continental European countries. La Cocinera has allowed us to establish ourselvesLedo (established in Spain through a brand that was founded1958) and Frikom (established in 1962.1975) are the lead brands with strong heritage in south-eastern Europe.
Our Competitive Strengths
We believe the following competitive strengths differentiate us from our competitors and contribute to our ongoing success.


Market leader with solid European platform and strong acquisition opportunities.
As the leading branded savory frozen food producer in Western Europe, we benefit from economies of scale and have developed a strong platform for our products throughout Europe, resultingEurope. We are market leaders in leadership positionsthe savory categories where we offer products in tensixteen geographies and a 13.8%have an 18% market share ofin the total Western Europeansavory frozen food market.market in the countries we operate (excluding markets covered by the Fortenova acquisition). We benefit from longstanding relationships with our retail customers which provide access to our diversified distribution channels, including supermarkets, discount retailers, the foodservicefood service channel and other food retailers that sell directly to consumers. We benefit from a diverse category and geographic mix and believe our strong existing platforms facilitate our expansion within a large addressable market and provide a broad set of potential acquisition targets in various food categories and geographic markets.
Effective brand equity strategy to leverage and expand well-known brands.
Our brands are well-established household names with long histories and local heritage in their respective markets. We possesshave several iconic brand assets and focus on our local hero"hero" platforms that are designed to leverage these iconic assets such as the “Captain”. Each of the Birds Eye, Iglo iglo, Findus, Ledo and FindusFrikom brands hold theholds a leading position in terms of spontaneous brand awareness in severalcertain European markets. Our leading brand recognition, broad product offering, and local provenance of these brands are key drivers of consumer trust and result in demand for our products.
Experienced management team and Board with a proven track record.
Our management team has extensive experience in the food industry and other fast movingfast-moving consumer goods markets and has worked with leading multinational consumer goods companies globally. Our management team is complemented by an experienced Board of Directors, and collectively, they have a proven track record of successfully acquiring, integrating and managing consumer businesses. We believe our management team and Board of Directors’ collective industry knowledge, coupled with our track record of achieving growth and responding to challenging market conditions, will enable us to continue to generate profitable growth.
Optimized sourcing through established platform and diversified supplier base.
We operate an efficient and centralized procurement and supply chain function which is closely aligned with our geographic footprint, allowing us to optimize our supply arrangements and reduce distribution costs. We source our products globally from a diverse supplier base and, as a result, are not dependentwe minimize our dependency on any one supplier. Our relationships with diverse suppliers enable us to safeguard the security of our supply and raw materials as well as enhance the quality and sustainability of such materials, while also delivering competitive pricing and limiting exposure to geographic risk and adverse currency movements.
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Strategic and geographically diversified manufacturing facilities.
We own and operate an efficient network of ninenineteen manufacturing facilities, with low capital expenditure requirements, all of which are located near the major markets we serve, providing for a balance betweenbalancing manufacturing and logistics costs and allowing for high levels of customer service. These facilities produce approximately 451 kilotonnes of frozen product per year and have what we believe to be sufficient spare capacity to accommodate future growth in our main product categories.
Commitment to innovation and research and development.
We focusInnovation is core to our growth model. Our R&D team actively scan new product efforts and emerging technologies, alongside consumer trends and unmet consumer needs. The intersection of these insights leads us to identify new opportunities to drive penetration and frequency. In addition, we regularly benchmark our investment in market research on our Core products -- fish, vegetables, meals and poultry --existing ranges to ensure that these continue to deliver experiences that delight our consumers. In response to these insights we establish multifunctional project teams that design new and improved products and packaging delivered through our core Must Win Battles for fish, veg, poultry, pizza and meat replacements. Each time we create a new product or pack we apply the products we launch and re-launch overcome penetration barriers. For example, we recently introduced our “crispier crumb”, which were renovationsprinciples of existing Core products.sustainable by design. To ensure the development and introduction of successful products, that fit this criteria, we follow a structuredrobust process through which we take new productsmove from idea generation, through concept screening, concept/concept and product laboratoriesdevelopment, to scale up and early volume sizing, to final validation.


validation before launch.
Our Strategy
WeOur strategy is underpinned by three fundamental pillars which are to expand the category, grow the core and accelerate innovation. In addition, we have developed and made significant progress in implementing the following strategic initiatives:
1.Build an integrated group of best-in-class food companies and brands within existing and related food categories and expand our geographic footprint through strategic acquisitions.
Our goal is to transform our companyCompany into an integrated best-in-class, global manufacturer, marketer and distributor of food products, within and outside of the frozen food category and the broader food sector. We believe there are significant growth opportunities in the European and North American markets and that the Iglo Acquisition and the Findus Acquisitionour acquisitions provide a strong platform on which to grow our business and expand and enhance our market share in the food industry in key geographic markets.
2. Focus on “Core” products“Core products” as a foundation for long-term growth.
We continue our strategy which is rooted in relentless focus on our Core products, which currently representinclude fish, vegetables, meals and poultry, and which, prior to the Fortenova Acquisition, represented approximately 69%70% of our branded channel sales. These strategies include improving product quality, packaging renovation and executing in-store initiatives such as ensuring the right product assortment, display strategies and promotional efficiencies. We believe focusing on these Core product initiatives will accelerate growth, lead to margin expansion and improve our return on investment. To further accelerate growth, we will also turn our attentioncontinue to pursue innovation which leverageleverages consumer trends such as health, wellness and convenience, but which are anchored in our core categories.
3. Align our business with consumer preferences and trends.
Our goal is to create and acquire food businesses and brands that strongly align with consumer needs and preferences that have high growth and margin potential and that leverage our existing portfolio of brands. In addition, we seek to align our product innovation strategies with consumer trends such as increased demand for nutrition-packed meals that can be prepared in shorter times, vegetarian options, meat substitutes and sustainably sourced and produced food.
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4. Leverage our acquisition expertise, strong management team and access to capital to identify and evaluate attractive growth opportunities.
Our Founders and CEO have significant experience and expertise, and have been highly successful, in identifying, acquiring and integrating value-added businesses. We believe that this expertise, our access to capital and the deep industry knowledge of our management team will position us to acquire related and complementary food businesses that can enhance our market position, create synergies and fully leverage our existing marketing, manufacturing and supply chain capabilities, which we believe will allow us to deliver sustained profitable growth and maximize shareholder value. For example, on January 17,in 2018 we entered into an agreement to acquire Green Isle Foods Ltd.completed (i) the Goodfella's Acquisition including the Goodfella's "Goodfella's" and "San MarcoMarco" brands, in an all cash deal valued at £200 million (approximately €225 million). We anticipate this acquisition to be completed in the second quarter of 2018 and we expect this will enlargewhich enlarged our portfolio of brands to include the number one and number two market share positions within the frozen pizza category in Ireland and the UK, a successful frozen private label pizza business, and two frozen pizza manufacturing facilities.facilities and (ii) the Aunt Bessie’s acquisition including the "Aunt Bessie's" brand, which enlarged our portfolio of brands to include the number one and number two market share positions, respectively, within frozen Yorkshire puddings and frozen potatoes, which combine to represent the majority of its revenues. On December 31, 2020 we completed the acquisition of Findus Switzerland. Findus is the leading frozen food brand in Switzerland with a portfolio of value-added frozen products across categories including fish, vegetables and ready meals. The acquisition expands Nomad Foods' geographic reach into Switzerland, a new and sizeable market, providing a natural extension for our Findus product offering and brand family with an attractive entry for Green Cuisine. The transaction unifies Nomad Foods' ownership of the iconic Findus brand across Europe. In September 2021 we acquired Fortenova Group’s Frozen Food Business Group, which brings a leading European frozen food portfolio operating in attractive new markets for Nomad Foods, including Croatia, Serbia, Bosnia & Herzegovina, Hungary, Slovenia, Kosovo, North Macedonia and Montenegro. Its two anchor brands, "Ledo" and "Frikom", have No 1 market share in many of these markets and offer a broad range of frozen food products including fish, fruits, vegetables, ready meals, pastry and ice cream. The acquisition creates a platform for future expansion into Central and Eastern Europe and introduces us to ice-cream which opens new potential avenues for growth.
5. Respond to changing consumer shopping habits.habits and drive advertising efficiency and impact.
We are responding to the growing consumer shift to digital and mobile technologies, particularly in the United Kingdom,apparent across all of our markets, by investing in technology platforms and partnering with retailers thatboth existing and emerging retailer partners who are executing their own e-commerce strategies to meet changing consumer habits. Online sales represented 4%approximately 8% of our total sales as of December 31, 2017.2022 (compared to 8% in 2021 and 7% in 2020). COVID-19 dynamics have played a part in accelerating existing consumer shopping behavior trends. The need of social distancing measures due to COVID-19 resulted in many new consumers trialing online grocery shopping channels for the first time, and accelerated the expansion of other models, such as Quick Commerce in large cities across Europe. We believe that the online salesfull Digital Commerce channel will continue to provide further opportunities to drive market share gains through improved product content, allowing us to more fully share the benefits of the Frozen category directly to consumers, and upselling ofdriving our mealtime solution programs. In addition, our strategies are evolving in response to other consumer shopping trends such as increased purchases through the hard discounter channel, which has been growing significantly in the United KingdomUK and Southern Europe.


6. Generate strong margins and cash flow through disciplined net revenue management, supply chain optimization and disciplined cost management.
We continue to increase our margins and cash flows by strengthening our net revenue growth management capabilities and focusing on supply chain optimization and disciplined cost management. These efforts, which will be implemented over time, will include developing stronger promotional programs, price pack architecture and trade terms as well as continuing our focus on lean manufacturing, factory footprint optimization, and procurement productivity.
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Products
We manufacture, marketDuring the past three fiscal years, we have manufactured, marketed and distributedistributed the following frozen food products:
Fish: includes frozen fish products such as fish fingers, coated fish and natural fish. These products were the largest contributor to our revenues in 2017.2022, 2021 and 2020.
Vegetables: includes ready to eatcook vegetable products such as peas and spinach.
Meals: includes ready to cook noodles, pasta, lasagne,lasagna, pancakes and other ready-made meals under the Iglo, iglo, Findus Italy and La Cocinera brand names.
Poultry: includes frozen poultry and meat products such as nuggets, grills and burgers.
Ice Cream: following the Fortenova Acquisition, includes in home and out of home ice cream.
Others: includes a variety of other offerings such as soups, pizza, bakery goods and bakery goods.meat substitutes.
We nowcontinue to place a strong emphasis on renovation of our existing Core products which include fish, vegetables, meals and poultry, in order to overcome penetration barriers and continue to build loyalty. For example, in 2022, we introduced under our new innovation platforms Wholesome Grains (coated fish assortment), Veg with Sauce (modern vegetable blends) and continued to focus on Green Cuisine (plant-based protein sub-brand). We manage renovation and innovation centrally on European common product platforms and have more local involvement where products are differentiated and country specific. Our research and development continues to be centralized, allowing us to leverage our research and development investment across our markets and focus on our largest Core products.
Customers
Our customers are typically supermarkets and large food retail chains supplying food products directly to consumers. Each key market in which we operate has its own distinct retail landscape. We consider our key retailer clients to be, in the UK, Tesco, Asda and Sainsbury’s; in Italy, Coop, AuchanConad and L5 Esselunga; in Germany, Rewe and Edeka; in Sweden, ICA, Axfood and Coop; and in France, Carrefour, Auchan and E.Leclerc. For the year ended December 31, 2017,2022, our top ten customers (in terms of revenue) accounted for 41%34% of revenues.
The majority of our sales are to traditionalestablished retailers and we expect this channel to remain our most significant channel for the foreseeable future. We partner with traditional retailers when we identify commercial or marketing opportunities that can be of interest for both businesses. We continue to review the presenceIn addition, we are selectively building partnerships and impact of the discounter channel, particularly the hard discounters, in each of our key geographic markets and will pursue opportunities to increaseare increasing our presence in the growing discounter channel.
We are increasing our investment in online sales which represented 4%The food service channel accounted for approximately 8% of our total sales as of December 31, 2017. The online grocery retail channel is growing faster than traditional grocery retail formats across developed markets. Frozen foods particularly benefit from the online channel as the advantages to the consumer of outsourcing transportation of frozen food to the retailer are greater than in other categories, and also because some of the barriers to purchasing in-store (e.g. colder aisles) are removed for the consumer online.
Approximately 7% of our sales for the twelve month periodyear ended December 31, 2017 were through the foodservice channel.2022. The majority of these sales were in Swedenthe Nordics, Croatia and consistSpain and consisted primarily of sales ofto institutional and public sector customers such as schools and hospitals, as well asand privately run work canteens and quick service restaurants.


The past few years have been a challenge in this sector, with governmental restrictions as a result of the COVID-19 pandemic having a significant adverse impact on sales in 2020 and 2021.
Sales, Marketing and Pricing
Our commercial strategy is centered around our Core products and our growth model focuses on three core elements: creating distinctive brands through leveraging our iconic brand assets, innovating to break penetration barriers balanced between renovation and innovation, and out executing in store through category leadership driving the right assortment, display and promotional efficiency.
Our brand equity strategy aims to further increase brand awareness. We will utilizeare utilizing our core iconic assets at all consumer touchpoints including traditional media, digital media, point of sale and packaging. Furthermore, we have invested and will continue to seek to invest at sufficient levels of media on all our Core products.
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We maintain sales teams in each of our key markets and all other markets in which our products areKey Markets with a small proportion of sales being sold with the exception of the Central and Eastern Europe markets where we operate via a distribution model. Our sales force is resourced to provide good store coverage. We are the “category captain” forhave been chosen to lead category management projects by several leading supermarkets in each of our main product categories and have developed innovative presentations of our frozen food products and in-store marketing concepts with supermarkets in a number of our markets in order to increase shopper traffic and sales. Most recently, we have developed and are developingexecuting our “Perfect Store” concept which focuses on improving a consumer’s in-store shopping experience through presentation, layout and signage.
Manufacturing
We own and operate ninenineteen manufacturing facilities which are located in Lowestoft (United Kingdom)and Hull (UK), Bremerhaven (Germany),and Reken (Germany), Cisterna (Italy), Loftahammar and Bralanda (Sweden), Tonsberg and Larvik (Norway), Boulogne-sur-Mer (France), Valladolid (Spain), Longford and Valladolid (Spain)Naas (Republic of Ireland), Rorschach (Switzerland), Zagreb, Sesvete, and Daruvar (Croatia), Belgrade (Serbia) and Čitluk (Bosnia and Herzegovina). These facilities produce approximately 451 kilotons594 kilo tonnes of frozen product per year, representing approximately 75%74% of the total volumes of our sales. The manufacturing facilities are located near the major markets we serve, providing for a balance between manufacturing and logistics costs and customer service. Our manufacturing facilities are focused on in house manufacturing of our main product categories and emphasize quality and efficiency through scale. We have investedcontinue investing in new automated lines, such as fish fingers, poultryimproving the safety and spinach lines and because our plants are well invested and maintained, our capital expenditure requirements are well controlled.
Although capacity differs per product line and facility, we estimate that we have sufficient spare capacity available to accommodate future growth in our main product categories and as necessary to accommodate the seasonal nature of somequality standards of our products, particularly vegetables.
In 2016, we announced the closure of our factory and pea processing operations in Bjuv, Sweden, and operations ceased on March 30, 2017 with production transferred to other factories in the Group’s network. The consolidation of operations is expected to create a more efficient supply chain. In early 2018, we signed an agreement with Foodhills AB, who has acquired the buildings and parts of the premises.facilities.
Procurement
Our procurement functions are structured around primes and indirect raw materials (materials used in manufacturing which form a part of the end product, such as fish, vegetables, meat, other ingredients and packaging), non-production items (items purchased and services used to design, market and distribute the product, such as logistics, operations, including maintenance, sales and marketing) and co-pack (finished products bought from third parties, such as most vegetables other than peas and spinach).
We have an efficient and centralized supply chain which is closely aligned with our geographic footprint, allowing us to optimize our supply arrangements and reduce distribution costs. We operate a centralized procurement function, with all procurement of primes and the majority of non-production items and co-pack procurement activities centralized to maximize scale efficiencies.
We operate a global sourcing platform. Fish is sourced mainlyWe are the world's largest buyer of Marine Stewardship Council (MSC) certified wild caught whitefish sourcing globally and working with partners to bring to consumers nutritious, sustainable products. Our fish primarily originates from wild-caught fish in the United States,North Pacific, predominantly from US and Russian waters whereby MSC certification can be assured. Russia holds a large percentage of global fish quota and China, vegetablesaccounts for nearly 40% of global whitefish catch and up to 75% of the most popular wild caught fish varieties that we and many other companies buy, including Alaska pollock, Atlantic cod, haddock and wild caught salmon. This would take some time to replace with volumes from alternative wild caught sources and therefore we are accelerating our species diversification strategy to bring a greater volume of responsibly farmed Aquaculture Stewardship Council (ASC) certified products into our portfolio. Our suppliers use a range of processing methods which also extends to activities in China. Vegetables are sourced predominantly from Europe and poultry is sourced largely from South America (but also from Thailand and Eastern Europe). We have contracts in place with pea and spinach growers and third partythird-party pea processors in regions close to the location of pea growers.where peas are harvested. In addition, we utilize various co-pack suppliers for vegetables other than peas and spinach. The contract terms we enter into with various suppliers differ extensively with respect to length and provisions. 


We aim to maintain an appropriately diverse supplier base to safeguard the security of our supply of raw materials as well as enhance the quality and sustainability of such materials, while also delivering competitive pricing.
We segregate vendors into “strategic” and “tactical” categories based on criteria such as bargaining power or opportunistic procurement. On that basis, we have identified a number of strategic suppliers with whom we maintain close relationships, particularly in relation to main product categories for which security of supply is critical. Raw materials are mostly directly shipped to our manufacturing facilities.
The price of fish, vegetables and other agricultural commodities, including poultry and meat, can be volatile. We limit our exposure to price increases of raw materials by contractually securing prices for periods
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ranging from one month to a full year. Prices of raw materials that are harvested annually are generally fixed for a full year. Prices for certain other products, such as fish, dairy products and potatoes, are fixed for several months in line with industry practice.
Logistics
Our distribution network is made up of our manufacturing facilities, warehouses, local distribution centers and third partythird-party providers of services (such as co-packers & transport). We outsource the majority of our distribution processes to third parties seeking to collaborate with shared sites and integrated transport networks. Our distribution network is well consolidated and aligned with our manufacturing footprint in the United Kingdom,UK, Ireland, Germany, Italy, Sweden, France, Norway, Spain, Croatia, Serbia, and Spain.Bosnia & Herzegovina. From our manufacturing plants, our products are sent to regional distribution centers to be further distributed to local markets. Our primary distribution centers are used to consolidate both local production and imported products to be sold locally. These sites include Wisbech in the United Kingdom,UK, Naas in Ireland, Reken in Germany, Vitulazio,Capua, Latina and Parma in Italy, Bjuv in Sweden, Brussels in Belgium, Vantaa in Finland, Froneri in Switzerland, Vienna in Austria, Lognes in France, Tonsberg and Moss in Norway, and MarcillaLisbon in Portugal, Madrid in Spain. In 2021 added distribution centers in Podgorica in Montenegro, Skopje in North Macedonia, Milosheve in Kosovo, Szada in Hungary, Ljubljana in Slovenia, Sarajevo, Tuzla and Banja Luka in Bosnia & Herzegovina, Novi Beograd and Nis in Serbia, and Zagreb, Osijek and Slavonski Brod in Croatia to our Network coverage.
Seasonality
Our sales and working capital levels have historically been affected to a limited extent by seasonality. In general, sales volumes for savory frozen food are slightly higher in colder or winter months partly because there are fewer fresh alternatives available for vegetables and because our retailers typically allocate more freezer space to the ice cream segment in hotter or summer months. In addition, variable production costs including costs for seasonal staff, and working capital requirements associated with the keeping of inventories,will vary depending on the harvesting and buying periods of seasonal raw materials, in particular vegetable crops. For example, stockinventory levels typically peak in August to September just after the pea harvest and as a result, we require more working capital is required during those months. The Fortenova Acquisition in September 2021 follows a different seasonality to the legacy business, with stronger performance through the summer months behind the ice-cream business.
Corporate Social ResponsibilitySustainability Approach

We operate a Corporate Social Responsibility program which is an important part ofcontinuously review our brand positioning. It capturesposition to mitigate supply chain risks, working to meet relevant ethical, environmental and social obligations. We seek to source, manufacture and sell our commitment and vision of the role that we must play in bringing food to our consumers while tackling fundamental challenges in our environment and society. There are four primary focus areas:

Reduction of food waste. Frozen food can offer a more sustainable food choice because it can cut food spoilage and food waste due to the portion control and to an extended shelf-life.

Nutrition. Our products and innovations can help consumers make healthier meal choices.

Sustainable sourcing. We aim to source and prepare our food products in a responsible way.way and do our part to support wider industry efforts to deliver a more resilient food system. We do this by making an impact across the three key pillars of our "Appetite for Better" sustainability strategy - better sourcing, better nutrition and better operations. Our strategy is embedded into our business planning processes and is informed by perspectives from internal and external stakeholders, including our Sustainability Advisory Board, customers, farmers, peer benchmarking and the Nomad Foods Sustainability Risk Heat Map (see also Risk Factors – We may not be able to achieve our sustainability targets to the extent we expect.).
Robust risk management processes are crucial to sustainable business practices and we assess and monitor, strategic, operations, financial, climate and nature related risks. Alongside this, we have set clear targets, aligned with the UN's Sustainable Development Goals, and focused on some of the key areas that are material to our business. These are outlined below and supported by further information on progress in our annual Sustainability Impact Report.

    1. Better Sourcing
•As a long lasting relationshipmajor purchaser of fish, seafood, vegetables and potatoes across Europe, we can help to drive change in how food is produced and, together with MSC, securing sustainableour suppliers and partners, make a meaningful contribution to global efforts to tackle the climate crisis. We prioritize fish and seafood and are proud to report more than 90% of the wild captured fish we use is MSC certified.

Lower carbon footprint. We seek to lower our carbon footprint, including reducing our absolute CO2 emissionssourced from manufacturing, to conduct our business in a more environmentally responsible manner.

We will extend the program in 2018 to secure further progress, maintaining a strong focus on sustainable sourced seafood and nutrition and dialing up our focus on environment and waste.


Fisheries
We have continued a long-term leadership position to pioneer the certification of global sustainable and responsible fisheries. Our Sustainable Fisheries Development Policy requires us to use the world’s most robust independent sustainable fisheries verification process, the Marine Stewardship Council standard (MSC).
It is also our policy to only source farmed seafood from responsibly managed farms which operate to independent third party standards such as the Global Aquaculture Alliance (GAA), Global GAP and Aquaculture Stewardship Council (ASC) standards.certified suppliers to ensure it meets strict requirements related to stock management, impact on eco-habitats, bycatch and a range of other risk areas.
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•For agricultural crops we use the Sustainable Agriculture & VegetablesInitiative Platform (SAI Platform)'s global Farm Sustainability Assessment (FSA) to measure progress against our target to source all of our vegetables, potatoes, fruit and fresh herbs through sustainable farming practices.
Together•We are committed to ethical trading, sourcing and procurement, upholding international standards. Our Supplier Code of Conduct applies to all our supply chain partners and includes requirements on human rights, workplace health and safety, fair business practices and traceability. We also require our direct suppliers to register on Sedex, one of the world’s largest collaborative platforms for sharing responsible sourcing data on supply chains.  
•We believe we are in compliance with all relevant environmental laws and regulations and expect our suppliers to do the same.
2. Better Nutrition
•Our Nutrition Manifesto sets out our eight key commitments to empower positive choices and we continuously work to improve our product portfolio using an externally verified Nutrient Profiling Tool, with over 700 growers,90% of our products (based on net sales) already qualifying as a healthy meal choice (HMC) . We use on-pack nutritional labelling across all of our markets and in addition to improving our own product offering we currentlyparticipate in a number of external partnerships that seek to influence a shift towards healthier, more sustainable diets.
•Our "Clean Labelling Policy" which has been in place since 2003 outlines our approach to ingredient selection to ensure that all new products are free from flavor enhancers, artificial flavors and artificial colorants.
3. Better Operations
•Our Safety Health and Environment Policy sets out our commitment to measure, manage approximately 17,000 hectares of land and mitigate our standards match or go beyond those requiredenvironmental impact and in 2021 our emissions reduction targets were approved by most agricultural assurance schemes.
Our Agricultural Code of Practice requiresthe Science Based Targets Initiative (SBTi) enabling us to produce crops with high yieldjoin the UN's Race to Zero and nutritional quality, while keeping resource demandssupport suppliers to develop their own science-based targets.
•We consider the total packaging system when designing packaging, recognizing that it plays an important role in terms of food safety, convenience, as lowwell as possible, thus minimizing adverse effectssustainability. Under our Packaging Policy we are committed to reducing packaging volumes, using more recyclable packaging materials and promoting re-use. As driving progress on soil fertility, water, air qualitysustainable packaging is particularly challenging, this is one of the key areas of focus for our Open Innovation Portal initiative launched in 2022.
•We believe that great people make the difference and biodiversity.in 2022 we launched our Safety First. Everyone. Every Day program building on our Vision Zero ambition to cause zero harm to people and the environment. The program has resulted in an over 40% reduction in severe accidents compared to the previous year.
Poultry
All•Our mission is to inspire, empower and equip our teams to be successful, so that everyone can learn, develop and grow and have rewarding work experiences. This includes helping our employees to nurture their health and wellbeing and measuring how we are doing as part of our poultry"Our Voice" employee survey.
Nomad Foods is responsibly sourced from suppliers that comply with a Code of Practice under closely monitored conditions which covers feed, animal medicines usage, welfarealso included in the Dow Jones Sustainability Europe Index (DJSI Europe) as the second highest ranking company in Europe within the food product industry group. Further details on our approach to sustainability and social standards.performance against specific targets can be found in our latest Sustainability Impact Report found on our website https://www.nomadfoods.com/eating-for-the-planet/sustainability-reports/.
Information Technology
Our IT systems are of key importancecritical to operating and growing our business, and in particular to our general operations and logistics functions and associated management reporting across countries andbut also to enable our plants.teams to work from hybrid locations. A single SAP tool isunderpins the primary business softwareprocesses to support all of our operations and management reporting across countries with new tools being introduced to support Sales planning, S&OP and our supply chain.Net Revenue Management activities.
This environment
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The IT architecture is designed as a consolidation platform forenabling integration of future acquisitions. A program is underway to transitionDuring 2022, the acquiredCompany completed the integration of the Findus Switzerland business onto the IT platform.Company's platform and also commenced the integration of the entities acquired as part of the Fortenova acquisition, which the Company refers to as the "Adriatics business". We believe that the role of data and analytics will continue to increase in importance in decision-making, and we therefore intend to continue to enhance our capability to use such data and analytics in our decision-making process. Our cyber capability has increased with multiple tools being implemented as well as training for everyone in the Company.
The abilityCompany is undertaking a business transformation project underpinned by an upgrade to integrate potential new acquisitions quickly with little or no adverse business impact, while maintaining the low cost of ownership, is a fundamental requirement of our IT strategy.latest SAP S4/HANA. This has started and will continue throughout 2023 and finish in 2024. Additionally, we utilize ana new outsourced infrastructure service provider, maintaining best in class IT cost alongside improved capability to scale in line with business developments.
Intellectual Property
Maintaining adequate brand protection is of significant importance toIntellectual Property remains a core focus for the business. In 2021, we saw our business as we rely on our brands to implement our master brand strategy. We have a substantial trademark portfolio expand dramatically with nearly 2,000the acquisition of the Fortenova business, and we now have over 2000 trademarks across all our markets around the world. On the patent side, the dedicated drive to protect the business' innovations and new technology continues, particularly in the area of our markets. plant-based food products, packaging and food coatings - the business now has 20 pending or registered patents in place across the UK and Europe.
Our intellectual property is managed centrally, and we work closelyin close collaboration with a third party agencyspecialist team of trademark and patent attorneys and intellectual property solicitors in respect of filings, renewals, recordingstrade mark, design and the prosecutionpatent protection and enforcement of intellectual property matters internationally.
We own a European Union trademark foraround the world. In particular, there are strategies in place to maintain, protect and enforce our Birds Eye brand as well as national trademarks for our Birds Eye brandcore central brands including Captain and Nomad Foods in the United Kingdom, IrelandGroup's commercial territories of interest. Likewise, we monitor, protect and other EU countries,enforce our trademark rights in all local brands including Birds Eye, iglo, Findus, Green Cuisine, Aunt Bessie's, Goodfella's, Frikom,Ledo, La Cocinera and in other parts ofBelviva, across the UK, Europe outside the European Union, parts of the Middle East, Asia and Africa. For historical reasons, the Birds Eye trademark is owned by third parties in North America and Australia.
We own a European Union Trade Mark for our Iglo brand as well as national trademarks in many EU countries and in other parts of Europe outside the European Union, Australasia, Israel, parts of Asia, the United States, South America and Africa. We have trademark applications pending for the Iglo brand in, among others, Canada, India and Brazil.
We own the Findus trademark in many countries globally, other than in Switzerland, as well as (among others) the brands Lutosa in Belgium (until 2020) and La Cocinera in Spain and Andorra.


export markets.
Material Contracts
Each material contract to which we have been a party for the preceding two years, other than those entered into in the ordinary course of business, is listed as an exhibit to the registration statement to which this annual report is a part and is summarized elsewhere herein.
Pensions
We operate a number of different pension schemes across our various countries of operation, the majority of which are defined contribution schemes. We operate defined benefit pension plans in Germany, Sweden, Italy, Switzerland and Austria which are all closed to new entrants, as well as various defined contribution plans in other countries, the largest of which include Sweden and the United Kingdom. In Germany, France, Italy and Norway, longUK. Long term service awards and other employee benefits are also in operation and various other countries provide other employee benefits.in a number of countries.
Regulatory Matters
Our activities are subject to laws and regulations regarding food safety, the environment and occupational health and safety.
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Food Safety Regulation
As a manufacturer of foods intended for human consumption, we are subject to extensive legislation and regulation both from the European Union, the EU Member States and European free trade association (EFTA) members, UK adopted legislation and other European countries in which we operate. For the European Union, The European Commission, Directorate-General for Health and Food Safety is responsible for EU policy on food safety and health and for monitoring the implementation of related laws. The European Food Safety Authority advises the European Commission, the European Parliament and the EU Member States on food safety matters. EU Member States must ensure adequate enforcement, control and supervision of principles set forth in numerous EU Directives and Regulations and may be allowed to maintain or establish more stringent measures in their own legislation. Other European countries may follow the EU Directives and Regulations as is the case currently in the UK through the adopted legislation process following Brexit, but it may be that there are additional regulations to comply with on a country by country basis. We expect the UK to start generating its’ own regulatory matters as time progresses and as a UK based entity, we will be duty bound to follow these. These regulations govern the composition, manufacture, storage, handling, packaging, labeling, marketing and safety of our products. These regulations generally impose on food business operators an obligation to ensure that the operations under their control satisfy the relevant food law requirements and impose a mandatory traceability requirement along the food chain. The tracing information must be kept for a period of five years and upon request, must be made available to the relevant authorities.
In addition, we are subject to specific food hygiene legislation that establishes rules and procedures governing the hygiene of food products. This legislation sets forth specific rules governing the proper hygiene for food products of animal origin and sets forth microbiological criteria for food products. In addition, there are a number of other specific EU, adopted UK and local country requirements relating to specific matters such as contaminants, packaging materials and additives. The new Brexit Trade Agreement has resulted in substantial delays at Border Control Points for all food businesses due to the new level of documentation and checking which accompany food shipments across the UK to EU. Nomad products are frozen and maintained at a temperature below 18 degrees therefore there are no issues with food hygiene due to any delays or blockages which we may experience.
We are also subject to a broad range of European directives and regulations and local country requirements regarding the manufacture and sale of frozen foods for human consumption. These directives and regulations define technical standards of production, transport and storage of frozen foods intended for human consumption and require us to assure internal quality control at each stage of the “cold chain” and to implement any standards, as established by public authorities. These directives and regulations have in all areas of food safety been translated into UK statutory instruments as written, and the government have indicated that all EU adopted legislation will be subject to a review in 2023 which will most likely drive a divergence in the 2 trading bodies by the end of this year. We continue to monitor and engage with all parties to limit the impact to the business.
Listed below are the various internal due diligence procedures we have established to ensure continuous compliance with all relevant regulatory and food safety standards:

implementing•Implementing food hygiene principles across all production sites in accordance with food hygiene regulations;

annual•Annual external auditing of our production sites conducted by independent compliance companies applying the British Retail Consortium Global Standard for Food Safety Issue 7,8, its European equivalent, the International Food Standard or the Global Food Safety Initiative. Currently 84%93% of our suppliers are also certified to one or more of these food safety management systems and it is our long termlong-term objective to achieve 100% certification;

ensuring•Ensuring that our Group’s Quality Management Systems comply with ISO 9001 with external audits to ISO or BRC standard;

conducting•Conducting internal audits covering all production sites as part of our internal audit program; we do not carry outprogram (including cross-audits where one site's audit team audits another's system;system);



maintaining•Maintaining a risk-based microbiological and contaminant screening program, including screening for allergens, that covers raw materials and finished products; and

holding•Holding monthly regulatory updates to assess emerging risk areas, update policies and review outstanding issues as part of the quality forum meeting which is attended by functional heads.
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Tariffs and Trade
We are subject to specific trade requirements regarding fish and poultry, two main ingredients for our products. The UK government has indicated that they will implement a new world border which may affect trade movements from late 2023.
Food Labeling Regulation
Pre-packaged food products must comply with provisions on labeling, which are harmonized throughout the European Union. Pre-packaged food products must also comply with provisions on nutrition labeling, which are also harmonized throughout the European Union. Under the Food Information for Consumers Regulation nutrition labeling is mandatory unless exempted.
In addition to general and nutrition requirements, pre-packaged food products must bear a lot mark declaration via a manufacturing or packaging lot reference, which is also a harmonized system throughout the European Union. The lot reference allows consumers and businesses to trace the product in the event of a product withdrawal or recall.
There are also specific labeling requirements for certain ingredients we use in our products. Local laws may also impose additional requirements with which we must comply.
Packaging
Our packaging protects the product against contamination, is designed to optimize logistics, helps with portion sizes, carries information for customers, and, by maintaining the quality of products for the duration of their shelf life, also helps to reduce food waste. However, packaging, in particular plastic packaging, has been in the spotlight because of its environmental impacts. Poor management of recycling or waste disposal of plastic packaging can result in plastic leaking from the waste management cycle into the ocean, threatening the lives of sea birds and marine animals, and disrupting ecosystems.
We primarily design our packaging around food safety needs and environmental impact concerns, ensuring that the packaging protects the product but does not waste natural resources. Our focus is on moving to recyclable materials. However, in some places we do need to use flexible materials such as plastic where innovation is required to find recyclable alternatives.
We expect packaging to be a focus for environmental law in the coming years, with the emergence of taxes or bans on the use of single-use plastic.
Environmental Law
The European Commission, Directorate-General for the Environment is responsible for EU policy on the environment and for monitoring the implementation of related laws. The European Union has issued numerous directives relating to environmental protection, including those aimed at improving the quality of water, addressing air and noise pollution, assuring the safety of chemicals and setting standards for waste disposal and clean-up of contamination. European directives are given effect by specific regulations in Member States and applicable regulations have been implemented in each of the countries in which we conduct our manufacturing activities. In addition, there may also be further regulations implemented at a country level in other countries in which we operate. Accordingly, our facilities must obtain permits for certain operations and must comply with requirements relating to, among others, water supply and use, water discharges and air emissions, solid and hazardous waste storage, management and disposal of waste, clean-up of contamination and noise pollution.
We are also subject to legislation designed to reduce energy usage and carbon dioxide emissions and also restrictions on the use of ozone depleting substances such as hydrochlorofluorocarbons (HCFCs)("HCFCs"). HCFCs are used in refrigeration systems and their use will be phased out as part of our normal maintenance, repair and replacement activities and we do not expect a need for significant incremental capital expenditures for this purpose.
Compliance with environmental laws and regulations is managed at the facility level. OurThe majority of our manufacturing facilities all have a detailed environmental management system which are externally audited on an annual basis for compliance with ISO 14001 or BRC.
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In addition, under some environmental laws and regulations, we could be responsible for contamination we may have caused and investigating or remediating contamination at properties we own or occupy, even if the contamination was caused by a prior owner or other third party or was not due to our fault, and even if the activity which resulted in the contamination was legal at the time it occurred.
Occupational Health and Safety
The safety and health of our employees is the number one priority for the business and in 2022 we embarked on a "safety first everyone, everyday" program to embed the culture of safety first across our business. This program alongside our commitment to identifying and reducing risk in the workplace has resulted in a significant improvement in our safety performance.
We continue to develop our Group Safety Management system and are working towards certification to International Standards ISO45001 and ISO18001 at all our Manufacturing Facilities.
We have a legal responsibility to protect the health and safety of our employees, customers and any other persons who may be affected by our operations. We strive to provide a safe workplace; controllingoperations and eliminating risks to health and wellbeing; ensuring that our facilities and the equipment within them are safe and that the environmental, health and safety procedures are both established and adhered to. We ensure that dangerous articles and substances are transported, stored and used safely; provide adequate welfare facilities; provide workers the information, instruction, training and supervision necessary to preserve and improve their health and safety; and consult with workers on health and safety matters.


We aim to meet the European Framework Directive on Safety and Health at Work (89/391 EEC) ensuring we. We continually strive to comply with all the local and European legislation in all the countries we have a presence, ensuring we share best practices and procedures across our business to continuously improve our safety and environmental performance whilst driving a positive safety culture.performance.
We strive to ensure that dangerous articles and substances are transported, stored and used safely; provide adequate welfare facilities; provide workers with the information, instruction, training and supervision necessary to preserve and improve their health and safety; and consult with workers on health and safety matters.
In all of our locations we have established a Healthremoved Group specific COVID-19 protocols, but sites continue to monitor COVID conditions and Safety Management System modeled on the international Occupational Health & Safety management system specification OHSAS 18001. Our manufacturing facilities in the United Kingdom, Spain, Italy and Germany have achieved full accreditationare empowered to OHSAS 18001.deploy site specific control measures if required.
Compliance Programs

We have established policies and procedures aimed at compliance with applicable legislation and regulations, including policies for Anti-Bribery and Corruption as well as Trade Sanctions and Export Controls. In addition, ourSanctions. Our Code of Business Principles includes policiesas our framework policy is designed to ensure compliance with applicable legal and regulatory requirements and guidelines to drive a strong compliance culture.culture throughout all of our operations. A breach of the Code of Business Principles can lead to sanctions,disciplinary action, including termination of employment.
Our Safe Call Line,Safecall reporting line, which is operated by an external service provider, allows employees to report issues or ethical concerns anonymously. Compliance at the local level is based in large part on building strong local companies and developing a proper approach in coping with operational dilemmas within the boundaries of applicable laws and responsible conduct. Local management, assisted by the Internal Audit department, carries out reviews to identify compliance risks and to ensure that adequate systemsprocedures to manage those risks are in place. ChangesWe continually analyze and assess changes in applicable laws and regulations, are actively analyzed and assessed, and when necessaryimplement appropriate adaptations are implemented.when necessary.
Insurance
We have a comprehensive Global Insurance Program covering all territories that the organization operates within and undertake regular risk reviews. We continually assess business risks as part of the review to ensure we maintain comprehensivean effect insurance coverage, where appropriate, with respect to liability of ourprogram covering risk exposures.
The Global Insurance Program encompasses coverages such as directors and officers, property damage and business interruption, cold storage facilities, public liability, productsproduct liability, product recall, damage to vehicles,employer's liability, personal accident and travel.travel, advertising and motor.

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Human Capital management

1.Leadership Development and Talent Management.
Recruiting, developing and engaging our workforce is critical to executing our strategy and achieving business success. The board oversees and is updated on the company’s leadership development and talent management strategies designed to recruit, attract, develop and retain business leaders who can drive financial and strategic growth objectives and build long-term shareholder value. The board has also reviewed succession plans for the Chief Executive Officer and his direct reports.
2. Culture and Employee Engagement.
The board is keenly interested in ensuring that the company maintains and promotes a culture that fosters the values, behavior and attributes necessary to advance the company’s business strategy and purpose and encourage employee engagement and commitment. We undertake periodic risk reviewsregularly seek colleagues views and feedback on how successfully we are doing this through our annual survey.
3. Human Capital Management
The efficient production of high-quality products and successful execution of our strategy requires a talented, skilled and engaged team of employees. We aim to assess whethergive our insurancecolleagues training to do their jobs, as well as opportunities to expand their skills and contributions over time. We are also committed to maintaining a safe and secure workplace for our employees and have recently set specific safety standards to identify and manage critical risks. We prohibit workplace discrimination, and we do not tolerate abusive conduct or harassment. We also believe that respect for human rights is fundamental to our purpose of Serving the World with Better Food and to our commitment to ethical business conduct. Our code of Business Conduct is set out in lineour ‘Code of Business Principles’ and is available on our website.
Supporting our workforce in 2022 has been a key focus as inflation moved ahead of wage growth. In order to help our colleagues in the established business we announced a one off Cost of Living Payment in December aimed at the lower paid part of our workforce. Our proposal reached over 80% of our workforce across our established markets. In addition, in order to attract and retain our colleagues in the Adriatics we made a one off investment into the pay rates of our colleagues across the business, in recognition of the key role our workforce plays in our business success.
4. Diversity and Inclusion
We believe that fostering a culture of inclusion and belonging strengthens our ability to recruit talent and allows all of our employees to thrive and succeed. We actively cultivate a culture that acknowledges, respects and values all dimensions of diversity - including gender, race, sexual orientation, ability, backgrounds and beliefs. Ensuring diversity of input and perspectives is core to our business strategy, and we are committed to recruiting, retaining, developing and advancing a workforce that reflects the diversity of the consumers we serve. We have an active Inclusion plan and are working to embed our culture of inclusion and belonging into our day-to-day ways of working through: Shine (Support program aimed at improving internal female talent pipeline), a growing number of networks promoting representation and inclusion and enabling our employees to have space for debate and growth and continuing with our business risksprogram of Inclusive leadership and whether the developments in insurance policies are reflective of the changes in our business.Inclusive hiring training.

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C.    Organizational Structure
C.Organizational Structure
We (Nomad Foods Limited) are a holding company with 4152 subsidiaries, all of which are wholly-owned by us. The following table provides a list of all of our significant subsidiaries and their country of incorporation.
NameActivity
Country of

incorporation
Ownership as

of DecDecember 31,
2017

2022
Nomad Foods Europe Holdings LimitedHoldingEngland100%
Nomad Foods Europe Holdco LimitedHoldingEngland100%
Nomad Foods Europe Finco LimitedHoldingEngland100%
Nomad Foods Europe Midco LimitedHolding/FinanceEngland100%
Nomad Foods Bondco PlcFinanceEngland100%
Nomad Foods Lux S.à.r.l.FinanceLuxembourg100%
Nomad Foods Europe LimitedManagementEngland100%
Birds Eye LimitedTradingEngland100%
Nomad Foods Europe Finance LimitedFinanceEngland100%
Birds Eye Ireland LimitedTrading
Republic of

Ireland
100%
Iglo Holding GmbHHoldingGermany100%
Iglo Nederland B.V.TradingNetherlands100%
Iglo Belgium S.A.TradingBelgium100%
Iglo PortugalTradingPortugal100%
Iglo Austria Holdings GmbHHoldingAustria100%
C.S.I. Compagnia Surgelati Italiana S.R.L.TradingItaly100%
Findus Sverige Holdings ABHoldingSweden100%
Iglo GmbHTradingGermany100%
Frozen Fish International GmbHTradingGermany100%
Liberator Germany Newco GmbHPropertyGermany100%
Iglo Austria GmbHTradingAustria100%
Findus Sverige ABTradingSweden100%
Frionor Sverige ABHoldingSweden100%
Findus Holdings France SASHoldingFrance100%
Findus France SASTradingFrance100%
Findus Espana SLUTradingSpain100%
Findus Danmark A/STradingDenmark100%
Findus Finland OyTradingFinland100%
Findus Norge ASTradingNorway100%
Findus Norge Holding ASHoldingNorway100%
Toppfrys ABTradingSweden100%
Findus Switzerland AGTradingSwitzerland100%
LEDO plus d.o.o.TradingCroatia100%
INDUSTRIJA SMRZNUTE HRANE FRIKOM DOO BEOGRADTradingSerbia100%
LEDO d.o.o. ČitlukTradingBosnia & Herzegovina100%
IRIDA d.o.o.TradingCroatia100%
LEDO Jégkrém és Fagyasztott Élelmiszer Gyártó és Forgalmazó Korlátolt Felelősségű TársaságTradingHungary100%
Ledo d.o.o. (LEDO, podjetje za trgovino s sladoledom, zmrznjeno hrano in storitve, d.o.o.)TradingSlovenia100%

45


D.Ledo d.o.o. Podgorica (Društvo Za Proizvodnju, promet roba i usluga “Ledo” d.o.o. Podgorica)Property, Plant and EquipmentTradingMontenegro100%
Ledo Sh.p.k.TradingKosovo100%
FRIKOM BEOGRAD DOOEL Cucer SandevoTradingNorth Macedonia100%
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D.    Property, Plant and Equipment
The following table sets forth information on the main manufacturing sites used by us in our business:
FacilityProductsProduction (ktons)Utilization %Freehold/
Leasehold		Footprint
Belgrade, SerbiaIce cream, Pastry Products, Vegetables, Fruits3149%FreeholdSite: 116,500 m2
Buildings: 8,100 m2
Boulogne, FranceFish Products1672%LeaseholdBuildings: 11,000 m2
Bralanda, SwedenVegetables1080%FreeholdSite: 80,000m2
Buildings: 22,000m2
Bremerhaven, GermanyFish Products9085%LeaseholdSite: 90,000 m2
Buildings: 30,000 m2
Cisterna, ItalyVegetables, Free Flow Meals, Fish Fingers, Sofficini7180%FreeholdSite: 269,560 m2
Buildings: 69,198 m2
Citluk, Bosnia & HerzegovinaFish Products, Fruits, Vegetables243%FreeholdSite: 12,694 m2
Buildings: 6,552 m2
Daruvar, CroatiaFish Products361%FreeholdSite: 30,223 m2
Buildings: 2,589 m2
Hull, UKYorkshire Puddings, Accompaniments & Desserts2166%FreeholdSite: 39,000 m2
Buildings: 15,000 m2
Larvik, NorwayVegetables, Free Flow Meals, Ready Meals734%FreeholdSite: 57,968 m2
Buildings: 7,246 m2
Loftahammar, SwedenBakery Products252%FreeholdBuildings: 5,300 m2 Site: 21,000 m2
Longford, ROIFrozen Pizza Products1791%FreeholdBuildings: 6,200 m2
Lowestoft, UKVegetables, Fish Products, Poultry, Potato, Beef Burgers11583%MixedBuildings: 45,000 m2
Site: 99,000 m2
Naas, ROIFrozen Pizza Products4499%FreeholdBuildings: 5,930 m2
Site: 35,288 m2
Reken, GermanyVegetables, Free Flow Meals, Ready Meals, Special Foods8979%FreeholdBuildings: 43,000 m2
Site: 118,000 m2
Rorschach, SwitzerlandPancakes, Ready Meals460%FreeholdBuildings: 8,500 m2
Site: 11,000 m2
Sesvete, CroatiaFruits, Vegetables851%LeaseholdSite: 2,208 m2
Buildings: 11,208 m2
Tonsberg, NorwayFrench Fries, Vegetables, Free Flow Meals2469%LeaseholdBuildings: 30,000 m2
Site: 58,000 m2
Valladolid, SpainVegetables, Free Flow Meals, Ready Meals, Pastry Products, Pizza1650%FreeholdBuildings: 50,000 m2
Site: 80,000 m2
Zagreb, CroatiaIce cream, Pastry Products2440%FreeholdSite: 23,129 m2
Buildings: 9,739 m2
Facility
Products
Production (tons)
Utilization %
Freehold/
Leasehold
Bjuv, Sweden (closed H1 2017)

Vegetables, Free Flow Meals, Ready Meals
9,600 volume per year
9%
Mixed
Boulogne, France
Fish Products
21,000 volume per year
65%
Leasehold
Bremerhaven, Germany
Fish Products
92,000 volume per year
85%
Leasehold
Cisterna, Italy
Vegetables, Free Flow Meals, Fish Fingers, Sofficini
79,000 volume per year
55%
Freehold
Larvik, Norway
Vegetables, Free Flow Meals, Ready Meals
7,200 volume per year
42%
Freehold
Loftahammar, Sweden
Baked Goods
3,200 volume per year
38%
Freehold
Lowestoft, UK
Vegetables, Fish Products, Poultry, Potato, Beef Burgers
109,500 volume per year
81%
Mixed
Reken, Germany
Vegetables, Free Flow Meals
87,200 volume per year
62%
Freehold
Tonsberg, Norway
French Fries, Vegetables, Free Flow Meals
25,800 volume per year
59%
Leasehold
Valladolid, Spain
Vegetables, Free Flow Meals, Ready Meals, Pastry Products, Pizza
16,500 volume per year
31%
Leasehold


For more information on property, plant and equipment see Note 12 “Property, plant and equipment”. We lease our principal executive offices located at No. 1 New Square, Bedfont Lakes Business Park, Feltham, Middlesex, TW14 8HA, which is 36,549 square feet in size.

Item 4A.    Unresolved Staff Comments
Item 4A.Unresolved Staff Comments
None.
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Item 5.Operating and Financial Review and Prospects

Item 5.     Operating and Financial Review and Prospects
The following is a discussion of the financial condition and results of operations for the yearyears ended December 31, 2017,2022 and 2021. Discussion regarding our financial condition and results of operations for the year ended December 31, 2016,2021 as compared to the nine monthsyear ended December 31, 2015 and2020 is included in Item 5 of our Annual Report on Form 20-F for the twelve monthsyear ended December 31, 2021, filed with the SEC on March 31, 2015 of the Company, and the five months ended May 31,2015.
We were formed on April 1, 2014 and had no trading operations until we acquired Iglo on June 1, 2015.3, 2022 (the "2021 Form 20-F").
Some of the information contained in this discussion and analysis or set forth elsewhere in this annual report, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in Item 3 Key Information-D. Risk Factors of this annual report, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. This discussion should be read in conjunction with our audited historical consolidated financial statements and other financial information included elsewhere in this annual report.
The historical financial information has been prepared in accordance with IFRS. In May 2015, the Company changed its fiscal year end from March 31 to December 31.



Overview
We were incorporated with limited liability under the laws of the British Virgin Islands under the BVI Companies Act on April 1, 2014 under the name Nomad Holdings Limited. After the Iglo Acquisition on June 1, 2015, we changed our name to Nomad Foods Limited. The Company is a “foreign private issuer” as defined in Rule 3b-4 promulgated by the U.S. Securities and Exchange Commission (“SEC”) under the U.S. Securities Exchange Act of 1934 (the “1934 Act”) and in Rule 405 under the U.S. Securities Act of 1933. As a result, it is eligible to file its annual reports pursuant to Section 13 of the 1934 Act on Form 20-F and to file its interim reports on Form 6-K. The Ordinary shares of the Company are listed on the New York Stock Exchange (“NYSE”).
Nomad operates in the European frozen food market, selling its products primarily to large grocery retailers either directly or through distribution arrangements primarily in the United Kingdom,UK, Italy, Germany, France, Sweden, France and Norway.Austria.
TheThese countries representingrepresent our top six markets and collectively represented approximately 68%80% of the total Western European Savory frozen food markets (in terms of retail sales value) and generated 81%70% of our revenue in 2017.2022. We also sell our products across western & southern Europe, as well as Ireland and the Nordics. Since the Fortenova Acquisition in Ireland, Austria, Belgium (including2021, this has extended the Lutosa brand), Finland, Greece, Hungary, Ireland, Portugal, Switzerland, Denmark, The Netherlands and Spain (including the La Cocinera brand).reach to south-eastern Europe. The brands under which we sell our products are “Birds Eye”“Birds Eye”, "Aunt Bessie's" and "Goodfella's" in the United KingdomUK and Ireland, “Findus”“Findus” in Italy, San Marino, France, Spain, Sweden, Switzerland and Norway, and “Iglo”“iglo” in Germany and other continental markets.markets, "Ledo" in south-eastern Europe and "Frikom" in Serbia and North Macedonia.
We currently operate ninenineteen manufacturing plants, three in Croatia, two in Germany, onetwo in Sweden, two in Norway, two in Ireland, two in the UK and one each in eachSpain, Italy, France, Serbia, Bosnia & Herzegovina and Switzerland.
Conflict between Ukraine and Russia
We are monitoring the situation in Ukraine closely given the current and potential impacts of the conflict on our operations, financial condition and results of operations. Although we have no commercial operations or manufacturing footprint in either Russia or Ukraine, we have seen unprecedented input cost inflation and increased complexity and volatility in our supply chain due to the crisis.
We believe that reducing our exposure to Russia, partially by diversifying our source of fish and our alternative species of fish, is in the best interests of the company as well as the right action to take in light of recent events. We source a material amount of our fish from Russia and due to the conflict, are actively pursuing opportunities to introduce alternative species and product formats to reduce our Russian exposure as quickly and effectively as possible. Due to our status as frozen category leader and our commitment to source wild-caught fish to the Marine Stewardship Council (MSC) certification standard, this will take time to execute. We have taken steps to reduce our reliance on Russian sourced fish including, (i) increasing the amount of fish we purchase from the United Kingdom, Spain, ItalyStates (to the extent permitted by quotas), (ii) exploring alternative species of fish, and France.(iii) expanding into new product formats such as farmed fish. For example, one of the ways we are diversifying our sources of sustainable fish is by signing 3 new contracts to secure the supply of high-quality Aquaculture Stewardship Council (ASC) certified farmed pangasius from a leading Vietnamese supplier starting in 2023.
Additionally, we are accelerating relevant R&D projects and expanding into other categories such as “fishless fish” and expanding our vegetables category to create a broader range of options for our consumers.
48

Macroeconomic
In the last 12 months we have seen huge volatility in our macro environment driven by the war in Ukraine and further Covid restrictions impacting our supply chain (e.g. China). This has resulted in the need to focus on our two most urgent challenges: significantly higher raw material prices and risks to our fish supply.
For our consumers, the Ukraine and Russia conflict and supply chain restrictions have driven a cost of living crisis as well as an anticipated recession, and we have therefore made a number of interventions to our plans to ensure we remain on track to deliver our medium-term commitments.
Throughout 2022, we experienced higher than anticipated input cost inflation, including higher transportation and supply chain costs which we have attempted to mitigate through pricing increases. We anticipate such inflation to persist throughout 2023. Our clear priorities are pricing for inflation, securing the future of fish, and accelerating Green Cuisine as we believe these will have the biggest commercial impact on our short term and long-term success. We believe these agile commercial interventions, coupled with media investment, commercializing sustainability and accelerating our presence in discounters, will allow us to retain our existing consumer base and attract new consumers to the category and our brands. We believe these strong fundamentals will set us up for long-term sustained growth.
Financings and Acquisitions
On April 28, 2017,March 13, 2020, the Company announced a share repurchase program to purchase up to an aggregate of $300.0 million of the Company’s ordinary shares. Acquisitions pursuant to the stock repurchase program may be made from time to time through a combination of open-market repurchases, privately negotiated transactions, accelerated share repurchase transactions, and/or other derivative transactions. After the announcement, the Company entered into a series of open-market repurchases. During 2020, the Company repurchased and cancelled 11,913,682 ordinary shares at an average price of $21.04, for aggregate gross costs of $250.9 million (€217.4 million). Directly attributed transaction costs of €0.2 million were incurred. During 2021, the Company repurchased and cancelled a further 507,396 ordinary shares at an average price of $25.29 for aggregate gross costs of $12.8 million (€10.5 million).
On September 15, 2020, the Company repurchased by way of a Dutch auction a total of 18,061,952 ordinary shares at a clearing price of $25.50 per share amounting to the aggregate purchase price of $460.6 million (€389.3 million) which was paid to the prevailing shareholders with all shares canceled as of the same date. Directly attributed transaction costs of €1.9 million were incurred.
On December 31, 2020, we completed the Findus Switzerland AG acquisition for consideration of €112.8 million which produces and sells frozen food in Switzerland. The deal extends the geographical reach of this brand, complementing the existing business model. The acquisition also included a production facility in Rorschach, Switzerland.
On June 24, 2021, the Company amended and restated ourits Senior Facilities Agreement (as defined herein) to among other things, repay our(i) refinance its existing €553.2 million senior secured term loan facilitiesfacility through a new 7-year term facility due 2028 (the "Senior EUR Loan"), paying interest at a rate equal to the EURIBOR with a zero floor plus a margin of 2.5%, and establish new term loan facilities of €500.0 million and $610.0 million, both with maturity dates extended to May 2024. We also extended(ii) replace the maturity date of ourexisting €80.0 million revolving credit facility with a new €175 million facility, paying the interest rate applicable to May 2023.the respective drawn down currency plus 2.25%. Per the restated Senior Facilities Agreement, the Sterling Overnight Index Average (“SONIA”) has replaced GBP LIBOR and is effective immediately if there is a drawdown on the facility. The Secured Overnight Financing Rate (“SOFR”) will replace U.S. Dollar LIBOR and Swiss Average Rate Overnight (“SARON”) will replace CHF LIBOR, when existing benchmark rates are replaced. The revolving credit facility also includes margin ratchets linked to the future leverage of the Group, and achievement of ESG linked KPI's.
On May 3, 2017 we issuedJune 24, 2021, the Company through its indirect, wholly-owned subsidiary, Nomad Foods Bondco Plc, repaid the €400.0 million of 3.250%3.25% senior secured notes due 2024 (the "Fixed Rate Senior Secured Notes") and used the proceeds received in connection with the notescompleted a private offering and the amended and restated Senior Facilities Agreement to repay our existing floating rateof ��750.0 million aggregate principal amount of 2.5% senior secured notes due 2020.
On December 20, 2017 we further amended and restated our Senior Facilities Agreement to reprice our $610.0 million and €500.0 million term loan facilities. The margin was reduced by 50 basis pointsJune 24, 2028. Interest on the U.S. Dollar-denominated term loanNotes accrues from the date of issue and 25 basis pointsis payable semi-annually in arrears on the Euro-denominated term loan. There were no changesJanuary 15 and July 15, commencing on January 15, 2022. Subsequent to the maturity datesInitial Bond Offering, on July 9, 2021 the Company completed a subsequent private offering of the term loan facilities as a result€50.0 million aggregate principal amount of this amendment. We also established a $50.0 million incremental term loan facility and a €58.0 million incremental term loan facility. On January 31, 2018, the $50.0 million incremental term loan facility was fully drawn and on February 9, 2018, the €58.0 million incremental term loan facility was fully drawn.
In May 2015, we2.5% senior secured notes due 2028, issued 75,666,669 of our ordinary shares in a private placement at a price of $10.50 per ordinary€100.75.
49

On August 5, 2021, the Company announced a new share (the “May 2015 Offering”). In April 2015, we amended the Warrants issued in the 2014 Offeringrepurchase program to accelerate the expiration datepurchase up to the closing of the Iglo Acquisition (subject to certain limited exceptions) and, in order to incentivize the Warrant holders to exercise their Warrants prior to the new expiration date, we reduced the exercise price of the Warrants from $11.50 to $10.50 per whole ordinary share for all Warrants exercised before the new expiration date. Between May and June 2015, we issued an aggregate of 16,673,307$500.0 million of the Company’s ordinary shares to be executed. Acquisitions pursuant to the exercisestock repurchase program may be made from time to time through a combination of open market repurchases, privately negotiated transactions, accelerated share repurchase transactions, and/or other derivative transactions, at the Company's discretion, as permitted by securities law and other legal requirements. Pursuant to the program, as at December 31, 2021, the Company repurchased and cancelled 3,090,082 ordinary shares at an average price of $24.50, for aggregate gross costs of $75.8 million (€67.1 million). Directly attributed transaction costs of €0.1 million were incurred. During 2022, the Company repurchased and cancelled a further 1,160,547 ordinary shares in open market transactions at an average price of $26.23 for aggregate gross costs of $30.5 million (€26.8 million) under this authorization.
On September 30, 2021, the Company announced the completion of the Warrants. There are no Warrants currently outstanding.acquisition of the Fortenova Group’s Frozen Food Business Group (FFBG) for consideration of €641.6 million. FFBG is a leading European frozen food portfolio operating in attractive markets new to Nomad, including Croatia, Serbia, Bosnia & Herzegovina, Hungary, Slovenia, Kosovo, North Macedonia and Montenegro. Its two anchor brands, Ledo and Frikom, have unparalleled consumer awareness and number one market share in many of these markets and offer a broad range of frozen food products including fish, fruits, vegetables, ready meals, pastry and ice cream.
On June 1, 2015, we consummated our initial acquisition by purchasing Iglo Foods Holdings Limited (now known as Nomad Foods Europe Holdings Limited), a leading frozen food manufacturer and distributor in Europe. We paid an aggregate purchase price of €2.6 billion, including assumed debt of €1.2 billion andNovember 10, 2022, the Company announced that it closed on the issuance of 13,743,094 ordinary shares (the “Iglo Seller Shares”)both a $700.0 million (€700.6 million) term loan bearing interest at a rate per annum equal to the seller, Permira Funds. On June 12, 2017, we repurchased 9,779,729 of our shares beneficially owned by Permira FundsSOFR rate plus 3.75% and a €130.0 million term loan bearing interest at a purchase price of $10.75 (approximately €9.60)rate per share, which represents a 25% discountannum equal to the closing price of our ordinary shares on June 9, 2017, for an aggregate purchase price of $105.1 million (approximately €93.9 million)EURIBOR plus 3.5%, in final settlement of indemnity claims against an affiliate of Permira Funds, of legacy tax matters that predated the Iglo Acquisition.both due November 10, 2029. The aggregate purchase price was funded from our cash on hand and the ordinary shares were retired. The ordinary shares were previously held in escrow since the closing of the acquisition pending resolution of such claims.


In the July 2015 Offering, we issued 15,445,346 ordinary shares at a price of $20.75 per ordinary share. The number of ordinary shares issued in the July 2015 Offering represented, in aggregate, approximately 9.99% of our issued ordinary share capital immediately prior to the offering.
On November 2, 2015, we acquired the Findus Group for approximately £500 million, consisting of £415 million in cash and the Findus Consideration Shares. Through the Findus Acquisition, we acquired the continental European businesses of the Findus Parent in Sweden, Norway, Finland, Denmark, France, Spain and Belgium relating to the Findus, Lutosa, and La Cocinera brands. Findus revenues for the fiscal year ended September 30, 2015 were £471 million.
On September 11, 2017, in connection with the registered underwritten public offering of 33,333,334 of our ordinary shares by certain funds managed by Pershing Square Capital Management, L.P., we purchased 7,063,643 ordinary shares from the underwriters in the offering at a price of $14.16 (approximately €11.84), the price payable by the underwriters to the selling shareholders. We did not sell any ordinary shares in the offering and did not receive any of thenet proceeds from these loans were used to repay the offering. We used cash on hand to fund the repurchase of the ordinary shares.
On January 17, 2018 we entered into an agreement to acquire Green Isle Foods Ltd. including the Goodfella'sCompany's existing Senior Secured U.S. Dollar term loan due in 2024 in full, and San Marco brands, in an all cash deal valued at £200 million (approximately €225 million). We anticipate this acquisition to be completed in the second quarter 2018for transaction expenses and we expect this will enlarge our portfolio of brands to include the number one and number two market share positions within the frozen pizza category in Ireland and the UK, a successful frozen private label pizza business, and two frozen pizza manufacturing facilities.general corporate purposes.
Accounting for the IgloFortenova Acquisition
Effective from the date of the Iglo Acquisition, we haveThe Fortenova acquisition is reflected the Iglo Acquisition in our consolidated financial statements prepared in accordance with IFRS. The Iglo Acquisition isfrom September 30, 2021 (the date of the acquisition).
We have accounted for the acquisition using the purchase method as required by IFRS 3 “Business Combinations”. The net"Business Combinations" which allows the Company a year after the acquisition date to finalize the valuation of identifiable assets ofacquired as well as liabilities assumed. Due to the Iglo Group have been adjusted to our estimate of fair value as of June 1, 2015, the date when control of the Iglo Group passed to us. The excess of the costs of acquisition over the fair value of the assets and liabilities of the Iglo Group has been recorded as goodwill. We have completed the assessment of the purchase price allocation and such fair values are final.
Accounting for the Findus Acquisition
We have reflected the Findus Acquisition in our consolidated financial statements prepared in accordance with IFRS from the datetiming of the acquisition, November 2, 2015. In the nine months endedvaluation of the business had not been completed by December 31, 2015 we present two months of operations2021. The Company has since completed the exercise, resulting in our consolidated results.
Wea corresponding adjustment to Goodwill. These adjustments have accounted for the Findus Acquisition using the purchase method as required by IFRS 3 “Business Combinations”. The net assetsnot been considered material, thus did not result in a restatement of the Findus Acquisition has been adjusted to fair valuepreviously reported Statement of Financial Position as of November 2, 2015, the date when control passed to us. The excess of the costs of acquisition over the fair value of the assets and liabilities of the Findus Acquisition is recordedDecember 31, 2021 as goodwill. The fair values have been completed and as such the purchase price allocation and fair values are final.
Critical Accounting Estimates and Judgments
Information relating to “Critical Accounting Estimates and Judgments” are described in detail and are reporteddisclosed in Note 4 to the Financial Statements.14 "Acquisitions" within Item 18.
Recently Issued and Not Yet Adopted Accounting Pronouncements under IFRS
Information relating to “IFRSs recently issued and not yet adopted” are described in detail and are reported in Note 32 to the Financial Statements.

50


A.    Operating Results
A.Operating Results
Overview of Results
Successor Successor Successor Successor  Predecessor
Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015Year ended December 31, 2022Year ended December 31, 2021
€m €m €m €m  €m€m€m
Statement of Income data:
          
Statement of Income data:
Revenue1,956.6
 1,927.7
 894.2
 —
  640.3
Revenue2,939.7 2,606.6 
Cost of sales(1,357.2) (1,356.7) (663.0) —
  (417.9)Cost of sales(2,124.4)(1,862.3)
Gross profit599.4
 571.0
 231.2
 —
  222.4
Gross profit815.3 744.3 
Other operating expenses(319.3) (298.4) (138.6) (0.7)  (109.5)Other operating expenses(391.2)(356.3)
Exceptional items(37.2) (134.5) (58.1) (0.7)  (84.3)Exceptional items(48.7)(45.3)
Charge related to Founder Preferred Shares Annual Dividend Amount—
 —
 (349.0) (165.8)  —
Credit/(Charge) related to Warrant Redemption Liability—
 —
 0.4
 (0.4)  —
Operating profit/(loss)242.9
 138.1
 (314.1) (167.6)  28.6
Operating profitOperating profit375.4 342.7 
Finance income7.2
 24.2
 8.7
 0.1
  2.0
Finance income12.1 0.1 
Finance costs(81.6) (86.3) (44.2) —
  (117.7)Finance costs(66.5)(106.1)
Net finance (costs)/income(74.4) (62.1) (35.5) 0.1
  (115.7)
Profit/(loss) before tax168.5
 76.0
 (349.6) (167.5)  (87.1)
Net finance costsNet finance costs(54.4)(106.0)
Profit before taxProfit before tax321.0 236.7 
Taxation(32.0) (39.6) 12.3
 —
  (40.9)Taxation(71.2)(55.7)
Profit/(loss) for the period136.5
 36.4
 (337.3) (167.5)  (128.0)
profit for the yearprofit for the year249.8 181.0 
The table below presents certain additional key performance indicators:
Year ended December 31, 2022Year ended December 31, 2021
(€ in millions, except percentages)€m€m
Adjusted Gross Margin(1)
27.7 %28.9 %
Adjusted EBITDA(2)
524.4 486.7 
Adjusted EBITDA Margin(3)
17.8 %18.7 %

(1)Adjusted Gross Margin. Represents Adjusted Gross Profit as a percentage of revenue for the relevant period. Adjusted Gross Profit and Adjusted Gross Margin exclude acquisition purchase price adjustments within cost of goods sold. Adjusted Gross Profit and Adjusted Gross Margin are non-IFRS financial measures and you should exercise caution in comparing our Adjusted Gross Profit and Adjusted Gross Margin with similarly titled measures of other companies, as the definition may not be comparable.
(2)Adjusted EBITDA. EBITDA is profit or loss for the period before taxation, net financing costs, depreciation and amortization. Adjusted EBITDA is EBITDA adjusted to exclude, when they occur, the impacts of exited markets, acquisition purchase price adjustments, and exceptional items such as restructuring charges, goodwill and intangible asset impairment charges and other unusual or non-recurring items. In addition, we exclude other adjustments such as the impact of share-based payment expenses and related employer payroll taxes, and non-operating M&A related costs, because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to our underlying operating performance. The Company believes Adjusted EBITDA provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis. Accordingly, the information has been disclosed in this annual report to permit a more complete and comprehensive analysis of our operating performance. You should exercise caution in comparing our Adjusted EBITDA with similarly titled measures of other companies, as the definition may not be comparable. Adjusted EBITDA should not be considered as an alternative to profit/(loss) for the period, determined in accordance with IFRS, as an indicator of the Company’s operating performance.
(3)Adjusted EBITDA Margin. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenue for the relevant period. Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS measures and you should not consider them an alternative or substitute to operating profit or operating margin as a measure of operating performance.
51

 Successor Successor Successor Successor  Predecessor
 Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
(€ in millions, except percentages)€m €m €m €m  €m
Gross margin(1)
30.6% 29.6% 25.9% —%  34.7%
Adjusted EBITDA(2)
328.1
 324.9
 156.3
 (0.7)  125.4
Adjusted EBITDA margin(3)
16.8% 16.9% 17.5% n.p.  
  19.6%
The following table reconciles revenue to Adjusted Gross Profit and Adjusted Gross Margin for the periods presented:
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
€m€m€m
Revenue2,939.7 2,606.6 2,515.9 
Cost of sales(2,124.4)(1,862.3)(1,753.4)
Gross Profit815.3 744.3 762.5 
Gross Margin (1)
27.7 %28.6 %30.3 %
Cost of sales adjustments (2)— 8.4 — 
Adjusted Gross Profit815.3 752.7 762.5 
Adjusted Gross Margin (3)
27.7 %28.9 %30.3 %

(1)
Gross Margin. Gross margin represents gross profit as a percentage of revenue for the relevant period.
(2)
Adjusted EBITDA. EBITDA is profit or loss for the period before taxation, net financing costs, depreciation and amortization. Adjusted EBITDA is EBITDA adjusted to exclude (when they occur) exited markets, chart of account (“CoA”) alignments and exceptional items such as restructuring charges, goodwill and intangible asset impairment charges, the impact of share based payment charges, charges relating to the Founder Preferred Shares Annual Dividend Amount, charges relating to the redemption of warrants and other unusual or non-recurring items. The Company believes Adjusted EBITDA provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis. Accordingly, the information has been disclosed in this annual report to permit a more complete and comprehensive analysis of our operating performance. You should exercise caution in comparing our Adjusted EBITDA with similarly titled measures of other companies, as the definition may not be comparable. Adjusted EBITDA should not be considered as an alternative to profit/(loss) for the period, determined in accordance with IFRS, as an indicator of the Company’s operating performance.
(3)
Adjusted EBITDA Margin. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenue for the relevant period. Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS measures and you should not consider them an alternative or substitute to operating profit or operating margin as a measure of operating performance.

(1)Gross margin represents gross profit as a percentage of revenue for the relevant period.

(2)Cost of sales adjustments relate to acquisition purchase price adjustments within cost of goods sold.
(3)Adjusted Gross Margin represents Adjusted Gross Profit as a percentage of revenue for the relevant period.
The following table reconciles profit/(loss)profit for the periodyear to Adjusted EBITDA for the relevant period as follows:
Year ended December 31, 2022Year ended December 31, 2021
€m€m
profit for the year249.8 181.0 
Taxation71.2 55.7 
Net financing costs54.4 106.0 
Depreciation and amortization88.6 71.6 
Acquisition purchase price adjustments (1)— 8.4 
Exceptional items (2)48.7 45.3 
Other add-backs (3)11.7 18.7 
Adjusted EBITDA524.4 486.7 
 Successor Successor Successor Successor  Predecessor
 Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 €m €m €m €m  €m
Profit/(loss) for the period136.5
 36.4
 (337.3) (167.5)  (128.0)
Taxation32.0
 39.6
 (12.3) —
  40.9
Net financing costs/(income)74.4
 62.1
 35.5
 (0.1)  115.7
Depreciation and amortization42.4
 51.1
 21.8
 —
  12.5
Exceptional items (1)37.2
 134.5
 58.1
 0.7
  84.3
Other add-backs (2)5.6
 1.2
 —
 —
  —
Net purchase-price adjustment-inventory step up (3)—
 —
 37.0
 —
  —
Net purchase-price adjustment for cash flow hedge accounting (4)—
 —
 4.9
 —
  —
Change in Founder Preferred Shares Annual Dividend Amount and Warrant redemption (5)—
 —
 348.6
 166.2
  —
Adjusted EBITDA328.1
 324.9
 156.3
 (0.7)  125.4


(1)Relates to acquisition purchase price adjustments within cost of goods sold.
(1)Adjustment to eliminate exceptional items which management believes are non-recurring and do not have a continuing impact. Details of what has been identified as exceptional is included in the Results of Operations for each reporting period as set out in this item.
(2)Other add-backs include the elimination of share-based payment charges of €2.6 million and elimination of M&A related investigation costs, professional fees, transaction costs and purchase accounting related valuations of €3.0 million. We exclude these costs because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to our underlying operating performance.
(3)Adjustment to add back the one-off impact of accounting for inventory purchased in an acquisition at fair value rather than cost.
(4)Adjustment to add back the one-off impact of derivatives acquired in an acquisition for which the previous hedging relationship can no longer be continued.
(5)Adjustment to add back charges related to Founder Preferred Shares Annual Dividend Amount and Warrant redemption which are not considered to be operational costs. Further details are contained in the Results of Operations for each reporting period as set out in this item.
(2)Elimination of exceptional items which management believes do not have a continuing impact. Details of what has been identified as exceptional is included in the Results of Operations for each reporting period as set out in this item and in Item 5 of the 2021 Form 20-F.
(3)Represents the elimination of share-based payment charges and related employer payroll expense of €8.6 million (2021: €5.8 million) and elimination of non-operating M&A related costs of €3.1 million (2021: €12.9 million). We exclude these costs because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to our underlying operating performance.
Description of Key Line Items and Certain Key Performance Indicators
Set forth below is a brief description of key items from our consolidated statements of income. For additional information, see Note 3 to our audited consolidated financial statements which appear elsewhere in this annual report.
Revenue. Revenue is comprised of sales of goods after deduction of discounts and sales taxes. It does not include sales between Nomad subsidiaries. Discounts given by us include rebates, price reductions and incentives given to customers, promotional couponing and trade communication costs. At each end date of a reporting period, any discount incurred, but not yet invoiced, is estimated and accrued. Revenue is recognized when the risks and rewardscontrol of the underlying products have beenhas transferred, being when the products are delivered to the customer.customer in accordance with the contractual arrangements. This is usually upon either the dispatch of a shipment or the delivery of goods to the customer but is dependent upon contractual terms that have been agreed with a customer. Sales discounts incurred but not yet invoiced are established based on management’s best estimate at the end of the reporting period.
52

Cost of Sales. Cost of Sales are comprised of the cost of the inventories and distribution costs. Cost of inventories includes expenses related to the procurement and purchase of raw materials, as well as conversion costs including labor costs, depreciation of production assets, fuel, electricity, equipment maintenance and inspection.
Other Operating Expenses. Other operating expenses are comprised of advertising and promotions exchange movements and indirect costs. Indirect costs include staff costs, selling and marketing expenses, administration expenses, research and development expenses, amortization of software, amortization of brands and other expenses.


Charges related to Founder Preferred Shares Annual Dividend Amount. The charges relate to the Founder Preferred Shares Annual Dividend Amount by which the holders of Founder Preferred Shares are entitled to receive dividends, subject to certain performance conditions. The instrument and its component parts were analyzed under IFRS 2. The Company intends that any future Founder Preferred Shares Annual Dividend Amount will be equity settled. Accordingly as of June 1, 2015, the liability was classified as an equity reserve with no further revaluations through the Statement of Profit or Loss to be expected. Should a Founder Preferred Share Annual Dividend Amount become due and payable, the market value of any dividend paid will be deducted from the Founder Preferred Shares Dividend reserve, with any excess deducted from the accumulated profit/(deficit) reserve within equity.
Charges relating to Warrant redemption. The charges relate to the redemption rights of any outstanding Warrants which were fair valued at each balance sheet date with any changes in fair value charged to the income statement. The remaining warrants that were issued by the Company in conjunction with its initial public offering in April 2014 were redeemed in the nine months ended December 31, 2015 and a credit of €0.4 million was recognized in the Consolidated Statement of Profit or Loss. There are no Warrants currently outstanding.
Exceptional items. The separate reporting of exceptional items which are presented as exceptional within the relevant income statement category helps provide an indication of our underlying business performance. Exceptional items have been identified and adjusted by virtue of their size, nature or incidence. In determining whether an event or transaction is exceptional, management considers quantitative as well as qualitative factors such as the frequency or predictability of occurrence.
Finance Income. Finance income is comprised of interest income, other financing related income and net foreign exchange gains on translations of financial assets and liabilities held for financing purposes in currencies other than the Company’s functional currency.
Finance Costs. Finance costs are comprised of interest expenses, net interest on net defined pension plan obligations, amortization of debt discounts and borrowing costs, net foreign exchange costs on translations of financial assets and liabilities held for financing purposes in currencies other than the Company’s functional currency, and financing costs incurred as a result of amendments of debt terms.terms and other financing related costs.
Taxation. Taxation is comprised of current tax expenses and deferred tax movements.
Gross Margin. Gross margin is gross profit as a percentage of revenue.
We also utilize certain additional key performance indicators, as described below. We believe these measures provide an important alternative measure with which to assess our underlying tradingoperating performance on a constant basis. Our calculation of Adjusted EBITDA and Adjusted EBITDA margin may be different from the calculations used by other companies and therefore comparability may be limited. Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS measures and you should not consider them an alternative or substitute to operating profit or operating margin as a measure of operating performance.
Adjusted Gross Margin. Adjusted Gross Margin represents Adjusted Gross Profit as a percentage of revenue for the relevant period. Adjusted Gross Profit and Adjusted Gross Margin exclude acquisition purchase price adjustments within cost of goods sold.
Adjusted EBITDA. Adjusted EBITDA is profit or loss for the period before taxation, net financing costs, depreciation and amortization. Adjusted EBITDA is EBITDAamortization, adjusted to exclude, (whenwhen they occur)occur, the impacts of exited markets, chart of account (“CoA”) alignmentsacquisition purchase price adjustments and exceptional items such as restructuring charges, goodwill and intangible asset impairment charges the impact of share based payment charges, charges relating to the Founder Preferred Shares Annual Dividend Amount, charges relating to the redemption of warrants and other unusual or non-recurring items. In addition, we exclude other adjustments such as the impact of share-based payment expenses and related employer payroll taxes, and non-operating M&A related costs, because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to our underlying operating performance. The Company believes Adjusted EBITDA provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis.
Adjusted EBITDA Margin. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of revenue.
Currency
Our consolidated financial statements have been presented in Euro, which is our functional currency. Unless specifically stated otherwise herein, transactions in foreign currencies have been translated at the foreign exchange rate at the date of the relevant transaction.
Changes in foreign currency rates have a translation impact on our reported operating results.

53


A significant portion of our operations have functional currencies other than Euro (principally(including Pound Sterling)Sterling, Norwegian Krone, Swedish Krona, Serbian Dinar and Swiss Franc amongst others). In preparing itsour financial statements, translations in currencies other than our functional currency are recognized at the rates of exchange prevailing at the dates of transaction. Accordingly, our results for each of the periods presented below have been impacted by fluctuations in foreign exchange rates. Where material, the impact of translation of currency on results has been provided. For a discussion on strategies to mitigate the effect of these fluctuations see Note 33 "Financial risk management".
Results of Operations for the Year Ended December 31, 20172022 and the Year endedEnded December 31, 20162021
Year ended December 31, 2022Year ended December 31, 2021
Statement of Income data:€m€m
Revenue2,939.7 2,606.6 
Cost of sales(2,124.4)(1,862.3)
Gross profit815.3 744.3 
Other operating expenses(391.2)(356.3)
Exceptional items(48.7)(45.3)
Operating profit375.4 342.7 
Finance income12.1 0.1 
Finance costs(66.5)(106.1)
Net finance costs(54.4)(106.0)
Profit before tax321.0 236.7 
Taxation(71.2)(55.7)
profit for the year249.8 181.0 
 Successor Successor
 Year ended December 31, 2017 Year ended December 31, 2016
Statement of Income data:€m €m
Revenue1,956.6
 1,927.7
Cost of sales(1,357.2) (1,356.7)
Gross profit599.4
 571.0
Other operating expenses(319.3) (298.4)
Exceptional items(37.2) (134.5)
Operating profit242.9
 138.1
Finance income7.2
 24.2
Finance costs(81.6) (86.3)
Net finance costs(74.4) (62.1)
Profit before tax168.5
 76.0
Taxation(32.0) (39.6)
Profit for the period136.5
 36.4

Revenue for the year ended December 31, 20172022 was €1,956.6€2,939.7 million (year ended December 31, 2016: €1,927.72021: €2,606.6 million). The 1.5%12.8% revenue increase iswas driven from bothby acquisitions and an organic revenue increase of 1.8%, a 3% increase duemeasure which excludes the impact of translational foreign exchange and acquisitions compared to volume and mix and a 1% increase in revenue due to pricing in our Italy, Germany and United Kingdom markets, offset by unfavorable currency translation movements of 2% and one less trading day of 0.5%.the year ended December 31, 2021.
Gross profit, defined as revenue lessoffset by cost of sales, increased €28.4€71.0 million to €599.4€815.3 million for the year ended December 31, 20172022 from €571.0€744.3 million for the year ended December 31, 2016.2021. The increase in gross profit was driven by the increase in revenue and a reduction in gross margin. Gross Margin, defined as gross profit as a percentage of revenue, grew 100reduced by 90 basis points to 30.6%27.7% from 29.6%28.6% in the year ended December 31, 20162021 primarily due to:
Mix benefit between categories
•A 490 basis points increase from pricing, promotional investments and countries generatedproduct mix
•A 100 basis points increase linked to acquisitions, which includes a 11030 basis point benefit, largely driven by growthincrease relating to the unwinding of the non-cash fair value uplift of inventory recorded in German2021 as part of the Findus Switzerland and Italian markets which have a higher than average gross margin;Fortenova Acquisitions.
80•A 680 basis point benefit from pricing and promotional efficiencies; partially offset by
80 basis pointpoints decrease from unfavorable foreign exchange driven cost increases, primarily in the United Kingdom post the Brexit announcement.
10 basis point reduction due to unfavorable translational foreign exchange.cost of goods inflation.

Other operating expenses increased to €319.3€391.2 million for the year ended December 31, 20172022 (year ended December 31, 2016: €298.42021: €356.3 million). The increase of €20.9€34.9 million was driven primarily by the reinstatementfull year inclusion of the employee bonus, partly offset by savings in our overhead cost base. Advertising and promotion decreased 1% to €113.1m, despite increased consumer facing media activity, which benefited from a favorable foreign exchange impact of 2%.Fortenova Acquisition, that was acquired on September 30, 2021.

54


Exceptional items of €37.2€48.7 million were incurred in the year ended December 31, 20172022 (year ended December 31, 2016: €134.52021: €45.3 million). Included in this charge are costs incurred in relation(i) a charge of €7.0 million from the release of indemnification assets (year ended December 31, 2021: €5.0 million), (ii) expenses related to integrating the implementationFortenova Acquisition of the Nomad strategic vision, which primarily relates to changes to the organizational structure to align behind core products and implement net revenue management initiatives of €18.8€9.5 million (year ended December 31, 2016: €7.02021: €3.5 million). Supply chain reconfiguration costs primarily related to restructuring activities in Sweden, (iii) expenses for an Information Technology Transformation Program of €14.0€4.4 million (year ended December 31, 2016: €84.32021: €4.2 million). Costs, (iv) expenses of the Findus Group€3.5 million relating to a factory optimization program which was initiated in 2018 (year ended December 31, 2021: €4.9 million), (v) expenses related to distribution network integration whichof €2.2 million, (vi) expenses associated with a multi-year, enterprise-wide transformation and optimization program that began in the current period primarily relates to the rollout2020 of the Nomad ERP system of €15.1€37.0 million (year ended December 31, 2016: €29.62021: €18.8 million). Costs, and (vii) expenses related to transactionsthe integration of €3.2the Findus Switzerland business of €8.2 million which relates to enhanced control compliance procedures in territories, including significant non-recurring consultant and audit costs (year ended December 31, 2016: €4.82021: €6.2 million), and (viii) a charge related to impairment of customer relationships of €5.8 million. In the year ended December 31, 2021, expenses of €5.3 million relating predominantlyrelated to preparations for, and responding to, changes impacting our supply chain of the Iglo and Findus Acquisitions)United Kingdom exiting the European Union ("Brexit").
Offsetting these costscharges are a net income on settlement of legacy matters relating to periods prior to acquisition of businesses by the Findus and Iglo businessesCompany of €5.6€28.9 million (year ended December 31, 2016: charge2021: income of €1.8€2.6 million) and. The majority of the net income related to settlements in 2022 followed favorable rulings on a series of registration tax claims in relation to an acquisition in 2010, prior to the re-measurementformation of indemnification assetsthe Company in 2014. As a result, the Company received a refund of €8.3 million (year ended December 31, 2016: charge of €10.4 million).the payments made in 2013 and 2018 in addition to interest.
Net finance costs of €74.4€54.4 million in the year ended December 31, 20172022 (year ended December 31, 2016: €62.12021: €106.0 million) include €50.1€61.0 million of interest payable on long term borrowings, lease liabilities and other cash pay interest expenses net of hedges (year ended December 31, 2016: €68.72021: €58.2 million), €20.1 milliongains on derivatives designated as fair value through profit and loss of financing costs incurred in order to refinance and amend debt facilities, €4.8nil (year ended December 31, 2021: loss of €13.7 million), a net impairment loss on short-term investments of nil (year ended December 31, 2021: €8.6 million), €2.8 million of other interest and finance costs (year ended December 31, 2016: €8.32021: €1.7 million), and €2.7 million of amortization of capitalized debt discounts and borrowing costs (year ended December 31, 2016: €5.02021: €2.0 million) and. This is offset by a lossgain of €3.9€9.2 million resulting from the translation of foreign currency-denominated financial assets and liabilities into Euros (year ended December 31, 2016: gain of €18.3 million). This is offset by gains on derivatives designated as fair value through profit and2021: loss of €7.0€4.0 million), finance income of €0.6 million (year ended December 31, 2016: loss of €4.32021: €0.1 million) and other finance incomenet financing gains incurred in amending terms of €0.2debt of €2.3 million (year ended December 31, 2016: €5.9 million)2021: costs of €17.9 million).
There was a tax charge in the year ended December 31, 20172022 of €32.0€71.2 million based on the underlying taxable profits. A taxation charge of €39.6€55.7 million was booked in the year ended December 31, 2016 which included charges2021. This difference is principally caused by higher profits and movements in provisions for uncertain tax positions.
As noted in Item 3:D. Risk Factors, the provision for historic exposures. The difference was due to non-taxable items (such as non tax-deductible interestfuture performance of the business is affected by a range of governmental economic, fiscal, monetary and provisions that are not tax effected), partially offset bypolitical factors. In particular, the non-recognitionongoing conflict between the Ukraine and Russia, the duration, spread and intensity of deferred tax assets on certain tax losses.
Results of Operations for the Year ended December 31, 2016COVID-19 pandemic and the nine months ended December 31, 2015
 Successor Successor
 Year ended December 31, 2016 9 months ended December 31, 2015
Statement of Income data:€m €m
Revenue1,927.7
 894.2
Cost of sales(1,356.7) (663.0)
Gross profit571.0
 231.2
Other operating expenses(298.4) (138.6)
Exceptional items(134.5) (58.1)
Charge related to Founder Preferred Shares Annual Dividend Amount—
 (349.0)
Credit related to Warrant Redemption Liability—
 0.4
Operating profit/(loss)138.1
 (314.1)
Finance income24.2
 8.7
Finance costs(86.3) (44.2)
Net finance costs(62.1) (35.5)
Profit/(loss) before tax76.0
 (349.6)
Taxation(39.6) 12.3
Profit/(loss) for the period36.4
 (337.3)
The figures foroutcome of Brexit agreements could have a material impact on the year ended December 31, 2016 represent a full twelve months of operations of both the Iglo Group and the Findus acquisition compared with the nine months ended December 31, 2015 representing seven months of operationsfuture results of the Iglo Group from June 2015 through to December 2015business.
B.    Liquidity and two months of operations of the Findus Acquisition from November through to December 2015. The comments below are on that basis.Capital Resources


Revenue for the year ended December 31, 2016 was €1,927.7 million (nine months to December 31, 2015: €894.2 million).
Gross profit for the year ended December 31, 2016 was €571.0 million and gross margin was 29.6%. (Nine months to December 2015: €231.2 million and a gross margin of 25.9%).
Other operating expenses increased to €298.4 million for the year ended December 31, 2016 (nine months to December 31, 2015: €138.6 million). The increase of €159.8 million primarily relates to a full twelve months of operation for both the Iglo Group and the Findus acquisition operating expenses.
Charges related to the Founder Preferred Shares Annual Dividend Amount was €nil for the year ended December 31, 2016 (nine months to December 31, 2015: €349.0 million). The comparative period charge relates to the periodic fair value through the Statement of Profit or Loss of the Founder Preferred Shares Annual Dividend Amount liability up to June 1, 2015. From June 1, 2015, we expect to equity settle any Founder Preferred Shares Annual Dividend Amount and therefore, as of June 1, 2015, the liability was classified as an equity reserve with no further revaluations through the Statement of Profit or Loss to be expected. Should a Founder Preferred Share Annual Dividend Amount become due and payable, the market value of any dividend paid will be deducted from the Founder Preferred Shares Dividend reserve, with any excess deducted from the accumulated profit/(deficit) reserve within equity.
The charges relate to the redemption rights of any outstanding Warrants which were fair valued at each balance sheet date with any changes in fair value charged to the income statement. The remaining warrants that were issued by the Company in conjunction with its initial public offering in April 2014 were redeemed in the nine months ended December 31, 2015 and a credit of €0.4 million was recognized in the Consolidated Statement of Profit or Loss. There are no Warrants currently outstanding.
Exceptional items of €134.5 million were incurred in the year ended December 31, 2016 (nine months to December 31, 2015: €58.1 million). Included in this charge are supply chain reconfiguration costs of €84.3 million (nine months to December 31, 2015: €nil), primarily related to restructuring activities in Sweden, Findus Group integration costs of €29.6 million (nine months to December 31, 2015: €4.5 million), losses on re-measurement of indemnification assets costs of €10.4 million (nine months to December 31, 2015: €nil), investigation of strategic opportunities of €7.0 million (nine months to December 31, 2015: €7.7 million), costs related to transactions of €4.8 million as a result of the New York Stock Exchange listing (nine months to December 31, 2015: €34.1 million relating predominantly to the Iglo and Findus Acquisitions), costs related to long-term management incentive plans of €1.9 million (nine months to December 31, 2015: €3.5 million) and a charge of €1.8 million for settlement of legacy matters relating to periods prior to acquisition of the Findus and Iglo businesses, primarily for legacy tax audits (nine months to December 31, 2015: €1.9 million). These are offset by an income for other restructuring costs of €1.0 million (nine months to December 31, 2015: charge of €8.9 million) and net income related to the Cisterna fire of €4.3 million (nine months to December 31, 2015: €2.5 million).
Net finance costs of €62.1 million in the year ended December 31, 2016 (nine months ended December 31, 2015: €35.5 million) include €68.7 million of interest payable on long term borrowings and other cash pay interest expenses (nine months ended December 31, 2015: €38.8 million), €8.3 million of other interest and finance costs (nine months ended December 31, 2015: €2.8 million), €5.0 million of amortization of capitalized borrowing costs (nine months to December 31, 2015: €2.1 million) and losses on derivatives designated as fair value through profit and loss of €4.3 million (nine months ended December 31, 2015: gain of €4.3 million). This is offset by a gain of €18.3 million resulting from the translation of foreign currency-denominated financial assets and liabilities into Euros (nine months to December 31, 2015: loss of €0.5 million) and finance income of €5.9 million (nine months ended December 31, 2015: €4.4 million).
A tax charge in the year ended December 31, 2016 of €39.6 million was due to increased profitability and provision for historic exposures. A taxation credit of €12.3 million was booked in the nine months ended December 31, 2015 relating to seven months of Iglo and two months of Findus operations.


Results of Operations for the Nine months ended December 31, 2015 and the Year ended March 31, 2015
 Successor Successor
 9 months ended December 31 2015 Year ended March 31, 2015
Statement of Income data:€m €m
Revenue894.2
 —
Cost of sales(663.0) —
Gross profit231.2
 —
Other operating expenses(138.6) (0.7)
Exceptional items(58.1) (0.7)
Charge related to Founder Preferred Shares Annual Dividend Amount(349.0) (165.8)
Credit/(Charge) related to Warrant Redemption Liability0.4
 (0.4)
Operating loss(314.1) (167.6)
Finance income8.7
 0.1
Finance costs(44.2) —
Net finance (costs)/income(35.5) 0.1
Loss before tax(349.6) (167.5)
Taxation12.3
 —
Loss for the period(337.3) (167.5)
The figures for the nine months ended December 31, 2015 represent seven months of operations of the Iglo Group from June 2015 through to December 2015 and two months of operations of the Findus Acquisition from November through to December 2015 compared with the year ended March 31, 2015. Prior to the Iglo Acquisition, Nomad had no operations.
Revenue for the nine months ended December 31, 2015 was €894.2 million representing seven months of operations of the Iglo Group from June 2015 through to December 2015 and two months of operations of the Findus Acquisition. Prior to the Iglo Acquisition, Nomad had no operations.
Gross profit for the nine months ended December 31, 2015 was €231.2 million and gross margin was 25.9%. The results for the nine months ended December 31, 2015 include a one-time €37.0 million fair value charge relating to a step-up in inventory values and a €4.9 million charge in relation to cash flow hedge accounting as part of the Iglo and Findus Acquisitions.
Other operating expenses increased to €138.6 million for the nine months ended December 31, 2015 in comparison to €0.7 million in the year ended March 31, 2015. The increase of €137.9 million primarily relates to seven months of Iglo and two months of Findus operating expenses.
Charges related to the Founder Preferred Shares Annual Dividend Amount increased to €349.0 million for the nine months ended December 31, 2015 in comparison to €165.8 million in the year ended March 31, 2015. The charge relates to the Founder Preferred Shares Annual Dividend Amount which was fair valued as of June 1, 2015. We expect to settle any Founder Preferred Shares Annual Dividend Amount with equity and therefore the liability has been reclassified as an equity reserve as of June 1, 2015 and no further revaluations are expected.
Exceptional items of €58.1 million in the nine months ended December 31, 2015 relate to the transaction-related costs incurred by Nomad in connection with the Iglo Acquisition and the Findus Acquisition of €28.2 million, other costs related to transactions of €5.9 million, investigation of strategic opportunities of €7.7 million, other restructuring costs of €8.9 million, the Findus Group integration costs of €4.5 million, costs related to management incentive plans of €3.5 million, a charge of €1.9 million for liabilities relating to periods prior to acquisition of the Findus and Iglo businesses, primarily for legacy tax audits and net income related to the Cisterna fire of €2.5 million.
Net finance costs of €35.5 million in the nine months ended December 31, 2015 relate to €38.8 million of interest payable on debt assumed as part of the Iglo Acquisition, €4.9 million of other interest and finance costs and €0.5 million resulting from the translation of foreign currency-denominated financial assets and liabilities into Euros offset by finance income of €4.4 million and a gain on derivatives designated as fair value through profit and loss of €4.3 million.


A taxation credit of €12.3 million was booked in the nine months ended December 31, 2015 relating to seven months of Iglo and two months of Findus operations.
B.Liquidity and Capital Resources
Overview
We believe that cash flow from operating activities, available cash and cash equivalents and our access to our revolving credit facility will be sufficient to fund our liquidity and other requirements for at least the next 12 months. At December 31, 2017,2022, we had €385.0€540.0 million of total liquidity, comprising €219.2€369.7 million in cash €66.0and €173.2 million of available borrowings under our revolving credit facility, as well as available borrowingsoffset by bank overdrafts of €58.0 million and $50.0 million (€41.8 million) from the Facility B5 and B6 loans.€2.9 million. We also continue to expect to continuebe able to raise cashcapital through equity and debt offerings to support the strategic aims of the Company when it is advisable to do so.so and market conditions allow. In addition, we may enter into working capital related facilities including receivables financing, reverse factoring and supply chain financing to support the requirements of the business. Our principal liquidity requirements have been, and we expect will be,are for working capital and general corporate purposes, including capital expenditures and debt service, as well as to identify and effect strategic acquisitions.
As a holding company, we depend on our receipt of cash dividends from our operating subsidiaries. For more information, see Item 3D: Key Information - Risk Factors - We are a holding company whose principal source of operating cash is the income received from our subsidiaries.
55

Restricted Cash
Nomad had cash and cash equivalents of €219.2€369.7 million at December 31, 2017,2022, of which €0.2€0.3 million was restricted. This compares with cash and cash equivalents of €329.5€254.2 million at December 31, 20162021 of which €4.2€0.2 million was restricted. Cash may be restricted duefor reasons including, but not limited to cash held in ring fenced accountscollateral as collateralsupport for guarantees or funds held in escrow accounts.issuance of guarantees.
Cash Flows
Our primary sources of liquidity for the periods reported were cash flow from operations and financing activities. Cash flows from financing activities, have in the past included, among other things,including borrowings under credit facilities high yield notes and shareholder loanSenior Secured notes. Our liquidity requirements arise primarily from the need to meet debt service requirements, to fund capital expenditures, to meet working capital requirements and to fund pension and tax obligations. Cash flows generated from operating activities together with cash flows generated from financing activities, have historically been sufficient to meet our liquidity needs.needs and are expected to remain so for the foreseeable future.
The following table summarizes net cash flows with respect to our operating, investing and financing activities for the periods indicated:
Year ended December 31, 2022Year ended December 31, 2021
€m€m
Net cash provided by operating activities303.8306.3
Net cash used in investing activities(78.7)(660.0)
Net cash (used in)/provided by financing activities(108.1)214.4
Net increase/(decrease) in cash and cash equivalents117.0(139.3)
Cash and cash equivalents at end of the period366.8254.2
 Successor Successor Successor Successor  Predecessor
 Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
   €m €m €m  €m
Net cash provided by / (used in) operating activities193.8
282.1
48.0
(0.5)

78.7
Net cash used in investing activities(42.6)
(50.4)
(959.8)
(295.6)

(6.3)
Net cash (used in) / provided by financing activities(241.8)
(67.7)
952.5
353.5

(29.4)
Net (decrease)/increase in cash and cash equivalents(90.6)
164.0
40.7
57.4

43.0
Cash and cash equivalents at end of the period219.2
329.5
186.1
126.8

268.4

Net Cash fromProvided by Operating Activities
Net cash fromprovided by operating activities was €193.8€303.8 million for the year ended December 31, 2017, down from €282.12022, compared to €306.3 million for the year ended December 31, 2016.2021. The €88.3€2.5 million decrease was primarily the resultdue to an increase in working capital of cash flows related to exceptional items of €99.5€96.8 million compared to €49.2an increase of €23.5 million in the year ended December 31, 2016,2021, offset by operating cash flows before changes in working capital of €521.6 million compared to €473.8 million in the year ended December 31, 2021, net cash flows relating to exceptional items of €40.8 million compared to €48.8 million in the year ended December 31, 2021, as well as cash flows relating to tax of €65.2€80.2 million compared to €24.9€95.2 million in the year ended December 31, 2016.
Net cash from operating activities was €282.1 million for the year ended December 31, 2016, up from €48.0 million for the nine months ended December 31, 2015. The €234.1 million increase was primarily the result of including twelve months of Iglo and Findus operations compared to the nine months ended December 31, 2015, which include seven months of Iglo operations and two months of Findus operations.


Net cash used in operating activities for the year ended March 31, 2015 was primarily related to ongoing costs and expenses prior to the Iglo Acquisition.
Net cash used in operating activities for the five months ended May 31, 2015 related to ongoing operations.2021.
Net Cash Used in Investing Activities
Net cash used in investing activities was €42.6€78.7 million for the year ended December 31, 2017,2022, compared to net cash used in investing activities of €50.4€660.0 million for the year ended December 31, 2016.2021. The outflow in the year ended December 31, 2017 was due to capital expenditures.
Net cash used in investing activities was €50.4 million for the year ended December 31, 2016, compared to net cash used in investing activities of €959.8 million for the nine months ended December 31, 2015. The outflow for the year ended December 31, 2016 included2022 includes capital expenditures as well as a payment of €8.0 million of deferred consideration for the Frudesa brand. The outflow in the nine months ended December 31, 2015 was primarily due to the Iglo Acquisition of €693.6 million, the Findus Acquisition of €556.9 million and offset by redemption of portfolio investments of €312.1€79.1 million.
Net cash used in investing activities was €295.6 million for the year ended March 31, 2015, relating to investment of our cash prior to the Iglo Acquisition.
Net cash used in investing activities was €6.3 million for the five months ended May 31, 2015 primarily related to capital expenditures.
Net Cash (Used in)/ Provided by Financing Activities
Net cash used in financing activities was €241.8€108.1 million for the year ended December 31, 2017 compared to net cash used in financing activities of €67.7 million for the year ended December 31, 2016. The outflow for the year ended December 31, 2017 relates primarily to payments of €177.6 million for the repurchase of the Company's own shares and payments of €16.7 million for fees incurred as part of the refinancing of the Company's debt arrangements, partially offset by decreased cash interest expense.
Net cash used in financing activities was €67.7 million for the year ended December 31, 20162022, compared to net cash provided by financing activities of €952.5€214.4 million for the nine months ended December 31, 2015. The outflow for the year ended December 31, 2016 relates primarily to interest payments.2021. The inflownet cash outflow in the nine monthsyear ended December 31, 2015 was2022 is primarily from the saledue to payment of shares in the May and July 2015 Offeringsinterest €54.2 million, payment of €1,171.8lease liabilities €26.5 million, and €325.0 million drawn on the senior facilities to fund the Iglo Acquisition and the Findus Acquisition, offset by a repaymentpayments of loan principal of €490.0 million and €40.8 million of interest paid.
Net cash provided by financing activities was €353.5€26.8 million for the year ended March 31, 2015, primarily resulting from the issuancerepurchase of ordinary shares in the 2014 Offering.shares.
Net cash used in financing activities was €29.4 million for the five months ended May 31, 2015 primarily related to interest payable on the senior debt.
56

Capital Expenditures
Our capital expenditures in 2017as of December 31, 2022 consisted, and in 20182023 we expect to consist of, primarily expenditures for factory capacity expansion and maintenance, cost savings projects, information systems, innovation, regulatory compliance acquisitions, including the Green Isle Foods Ltd. acquisition and other items. Capital expenditure is expected to increase in 2023 as the Company continues to grow but also due to the ongoing execution of its multi-year business transformation program which will include the implementation of new systems.
Capital commitments as of December 31, 2022 are not considered to be significant and are presented within Note 36 “Capital commitments” to our consolidated financial statements in Item 18. The anticipated source of such funds for such capital expenditures are cash flow from operating activities, available cash and cash equivalents and our revolving credit facility.
The following table sets forth our capital expenditures for the periods indicated, including as a percentage of revenue:
Year ended December 31, 2022Year ended December 31, 2021
€m€m
Capital expenditures79.179.2
Capital expenditure as a % of revenue2.7%3.0%
 Successor Successor Successor Successor  Predecessor
 Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 €m €m €m €m  €m
Capital expenditures42.6 42.4 21.4 —  6.3
Capital expenditure as a % of revenue2.2% 2.2% 2.4% —  1.0%
Trade Receivables - Factoring

To assist in managing operating cash flow, we have historically entered into non-recourse factoring arrangements whereby we may sell specific account receivables to one or more external financial institutions. Under the terms of such arrangements, the Company may continue to collect the cash from the customer receivables sold, albeit acting solely as a collecting agent on behalf of the purchaser of receivables. The Company retains no credit loss exposure to the receivables following sale. As a consequence, the risks and rewards of ownership are considered to have been transferred at the date of sale. No factoring fees were incurred associated with the sale of factored receivables for the year ended December 31, 2022 (2021: minimal). All factoring facilities were cancelled during 2021 and no receivables were factored at the end of December 31, 2021, due to sufficient liquidity resources available to the Company. However, such facilities may be entered into again in future periods for strategic purposes.


Funding and treasury policies

The Company uses centralized financial management to oversee access to financial markets, monitor and manage financial risks, and control liquid assets. This process is conducted according to a policy that applies to all group entities. All financial risk management strategies employed are for the purposes of risk mitigation and not for speculation.
The primary objective of our capital structure management is to maintain a strong financial profile for investor, creditor and customer confidence, and to support the growth of our business. We believe that the liquid assets of the Company, together with undrawn credit facilities and projections for future cash flows from operations, are sufficient to support the Company strategy. Access to external financing markets will be considered if funds are required other than from free cash flow to support the viability and growth of the business (e.g. supporting acquisitions).
Debt
Senior Facilities Agreement.  
On April 28, 2017, we entered into an Amendment
We maintain a syndicated senior facilities agreement with certain finance parties and Restatement Agreement with Nomad Foods Europe Midco Limited,lenders, originally dated July 3, 2014, as subsequently amended and restated most recently on November 8, 2022 (the “Senior Facilities Agreement”). Credit Suisse AG, London Branch, as securityis currently both the facility agent and agent on behalf of certain other finance parties thereto, and the other lenders and parties thereto relating to that certainsecurity agent.

The Senior Facilities Agreement dated July 3, 2014 (as amended and restated from time to time, including pursuant to amendment and restatement agreements dated October 23, 2015, April 28, 2017 and December 20, 2017, the "Senior Facilities Agreement"). Pursuant to the Amendment and Restatement Agreement, as of the closing of the refinancing on May 3, 2017, the Senior Facilities Agreement was amended and restated to, among other things (i) refinance the existinggoverns our term loan facilities by establishing a €500.0 millionand our revolving credit facility.

57

Term Loan Facilities

U.S. Dollar Denominated Term Loan Facility

The U.S. Dollar (USD) denominated term loan facility andas at December 31, 2022 consists of term loans in an aggregate principal amount of $700.0 million. The USD denominated term loans bear interest at a $610.0 millionrate per annum equal to term SOFR (subject to a 0.5% floor) plus 3.75% per annum.

The USD denominated term loan facility both with maturity dates extending to May 2024, (ii) extend the maturity of its €80.0 million revolving credit facility until May 2023is fully drawn and (iii) renegotiate the terms of certain covenants contained therein, each as more fully described in the Seniormatures on November 10, 2029.

Euro Denominated Term Loan Facilities Agreement.

The Euro (EUR) denominated term loan facilities as at December 31, 2022 consists of term loans in an aggregate principal amount of €683.2 million. Of this, €553.2 million bears interest at a rate per annum equal to EURIBOR (subject to a zero floor) plus 3.00%2.5% and each of the USD denominated term loan and revolving facilitymatures on June 24, 2028. A further €130.0 million bears interest at a rate per annum equalof EURIBOR (subject to LIBOR/EURIBOR (as applicable)a zero floor) plus 2.75%. If EURIBOR or LIBOR is less than zero, EURIBOR or LIBOR (as the case may be) shall be deemed to be zero. Pursuant to the Amendment3.5% and Restatement Agreement, at the closing, we also entered into an amended and restated Intercreditor Agreement originally dated July 3, 2014 withmatures on November 10, 2029.

Revolving Credit Suisse AG, London Branch, as security agent and certain other parties thereto.Facility
In order to match its underlying cash flows the Company has entered into a number of cross-currency interest rate swaps. In exchange for $610.0 million the Company has received €299.3 million and £226.7 million. The derivatives are designed to minimize the exposure to movements in foreign currency exchange rates and movements in interest rates. In exchange for receiving cash flows in USD matching the payments of principal and interest due under the Senior USD debt, the Company will pay fixed amounts of interest and principal on notional amounts of GBP and EUR. All of the USD to EUR swaps have been designated as a cash flow hedge whilst EUR to GBP swaps to the value of £187.6 million have been designated as a net investment hedge.
On December 20, 2017, we entered into an Amendment and Restatement Agreement with Credit Suisse AG, London Branch, as security agent and agent on behalf of certain other finance parties thereto, and the other lenders and parties thereto relating to theThe Senior Facilities Agreement to, among other things, (i) reprice the €500.0 million term facility (the "Facility B3 Loan") and the $610.0 million term facility (the "Facility B4 Loan" and together with the Facility B3 Loan, the "New Facility Loans") and (ii) establish a €58.0 million incremental term facility (the "Facility B5 Loan") and a $50.0 million incremental term facility (the "Facility B6 Loan" and together with the New Facility Loans and the Facility B5 Loan, the "Facility Loans"), each as more fully described in the Senior Facilities Agreement. Following the closing, the margin on the Facility B3 Loan is 25 basis points lower than that on the existing €500.0 million term facility (the "Facility B1 Loan") and the margin on the Facility B4 Loan is 50 basis points less than that on the existing $610.0 million term facility (the "Facility B2 Loan" and together with the Facility B1 Loan, the "Existing Facility Loans"). This reduction is expected to result in approximately €3.7 million of annual cash interest savings.
Concurrently with the creation of the New Facility Loans, the Existing Facility Loans (to the extent they were not rolled into the New Facility Loans) were paid in full. Each of the Facility Loans has a maturity date of May 2024, which is the same as the maturity date of the Existing Facility Loans. Each of the Euro denominated term loans bears interest at a rate per annum equal to EURIBOR plus 2.75% per annum and each of the USD denominated term loans bears interest at a rate per annum equal to LIBOR (as applicable) plus 2.25% per annum. If EURIBOR or LIBOR is less than zero, EURIBOR or LIBOR (as the case may be) shall be deemed to be zero. Except as set forth in the Senior Facilities Agreement and as described above and subject to the re-setting of the 6 month soft-call period (i) the Facility B3 Loan and the Facility B5 Loan had identical terms as the existing Facility B1 Loan and (ii) the Facility B4 Loan and the Facility B6 Loan had identical terms as the existing Facility B2 Loan and, in each case, are (or were) otherwise subject to the provisions of the Senior Facilities Agreement. On January 31, 2018, the $50.0 million incremental term facility was fully drawn and on February 9, 2018, the €58.0 million incremental term facility was fully drawn.
In addition, the Senior Facilities Agreement hasprovides for an €80.0€175.0 million revolving credit facility, of which up to €22.0€50 million can be used for the issuance of letters of credit.
credit and other ancillary facilities. The revolving credit facility matures on May 15, 2023June 24, 2026 and bears interest at a rate per annum equal to LIBOR or, in relation to any loan in Euro, EURIBOR,the underlying reference rate, plus the applicable margin. The applicable margin is 2.75%of 2.25% per annum. Interest on the revolving credit facility isannum, payable at the end of each interest period which, atperiod. The Revolving Credit Facility also includes a margin ratchet linked to the optionfuture leverage of the borrower, may be one, two, three or six months or any other period agreed with the facility agent.


Group and achievement of linked ESG target KPI's. As of December 31, 2017,2022, there was no cash drawn from the revolving facility, with €1.8 million outstanding by way of issued letters of credit and bank guarantees.

Indebtedness at December 31, 2022

As of December 31, 2022, we had approximately €1,009.5€2,140.2 million (December(December 31, 2016; €964.2 million)2021: €2,155.9 million) of indebtedness outstanding under our term loan facilities and no amounts outstanding under our revolving credit facility, other than €14.0€1.8 million (December 31, 2016; €13.22021: €2.8 million) in relation to stand-by letters of credit.credit and bank guarantees.

Terms of the Senior Facilities Agreement

The Senior Facilities Agreement contains certain customary negative operating covenants (certain of which are not applicable depending on the ratio of Consolidated Total Net Debt to Consolidated EBITDA) and other customary provisions relating to events of default, including non-payment of principal, interest or fees, misrepresentations,, breach breach of covenants, creditor process, cross default to other indebtedness of the borrowers and its subsidiaries in excess of€35.0 million, cessation of business, and material adverse change. We shall ensure that if,subsidiaries. If, in respect of any Relevant Period, ending after the Closing Date, the aggregate amount of: (i) all Revolving Facility Loans; (ii) drawn Letters of Credit; and (iii) Ancillary Outstanding’s (but excluding Ancillary Outstanding’s by way of undrawn letters of credit and undrawn bank guarantees under the relevant Ancillary Facility), (together the “RCF Drawings”) calculated as at the last day of each such Relevant Period, is equal to or exceeds 40% of the Total Revolving Facility Commitments as at such date, Debt Cover in respect of that Relevant Period shall not exceed 8.00:7.25:1. (Each of the foregoing terms is defined in the Senior Facilities Agreement). As of December 31, 2022, we were in compliance with all financial and other covenants contained in our Senior Facilities Agreement.

The USD denominated term loans include the requirement to repay 1% of original issued notional per annum from and including October 10, 2023. In addition to the mandatory 1% per annum amortization, the Senior Facilities Agreement also includes an excess cash flow calculation whereupon an amount of principal shall be repaid based upon terms including cash generated during the year and Company leverage. As of December 31, 2022, no excess cash is expected to be paid out in 2023 related to 2022.

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Hedging

In order to mitigate underlying foreign exchange exposure and mitigate interest rate risk, the Company has entered into a number of cross-currency swaps and interest rate swaps. In exchange for receiving cash flows in U.S. Dollars matching the payments of principal and interest due under the Senior U.S. Dollar debt, the Company pays fixed amounts of interest and principal on notional amounts of EUR. All cross-currency swaps have been designated as a cash flow hedge.

During the 2021 reporting period, cross-currency interest rate swaps that had previously exchanged fixed cash flows in EUR into fixed GBP cash flows and had been designated as a net investment hedge of the UK business were extinguished.

In order to mitigate interest rate risk, the Company has entered into a number of interest rate swaps. In exchange for receiving cash flows matching all of the payments of interest due under the €130.0 million Senior EUR debt, the Company pays fixed amounts of interest on notional amounts of EUR. These swaps have been designated as a cash flow hedge.

As a result of decisions taken by national regulators, GBP LIBOR and certain U.S. Dollar LIBOR time periods are being phased out and replaced by an alternative reference index (SONIA and SOFR, respectively). This is reflected in the Company’s latest issuance of U.S. Dollar term loan and related cross currency interest rate swaps, which use SOFR as the benchmark. There are no current plans to phase out EURIBOR. If EURIBOR ceases to exist, we will need to renegotiate the interest rate payable on the Euro denominated portion of our Senior Facilities Agreement with our lenders. Our expectation is that both debt agreements and hedging contracts will be aligned to the new benchmarks as they become known, and as such it is highly probable that the existing hedging relationships can be continued.

Fixed Rate Senior Secured Notes due 2024.  2028
On May 3, 2017, we entered into an indenture withJune 24, 2021, the Company through its indirect, wholly-owned subsidiary, Nomad Foods Bondco Plc, our indirect, wholly-owned subsidiary, our directrepaid the €400.0 million 3.25% senior secured notes due 2024 and indirect subsidiaries named as guarantors therein (together with us, the "Guarantors") and Deutsche Trustee Company Limited, as trustee thereunder, pursuant to which we issued €400.0completed a private offering of €750.0 million aggregate principal amount of 3.250% Fixed Rate Senior Secured Notes. The Fixed Rate Senior Secured Notes will mature on May 15, 2024.2.5% senior secured notes due June 24, 2028. Interest on the Fixed Rate Senior Secured Notes will accrue ataccrues from the ratedate of 3.25% per annumissue and is payable semi-annually in arrears. The Fixed Rate Senior Secured Notes are fullyarrears on January 15 and unconditionally guaranteedJuly 15, commencing on January 15, 2022.

On July 9, 2021 the Company announced that Nomad Foods Bondco Plc, an indirect, wholly-owned subsidiary of the Company, completed its private offering of €50.0 million aggregate principal amount of additional 2.5% senior secured notes due 2028, representing a senior basis by the Guarantors, subjecttack-on to the limitations set forth in the indenture. €750.0 million aggregate principal amount of senior secured notes due 2028 issued on June 24, 2021, and issued at a price of €100.75.

The Fixed Rate Senior Secured Notes are currently admitted to the Official List of the Luxembourg Stock Exchange and for trading on the Euro MTF Market. We used the proceeds received in connection with theAs of December 31, 2022, we had €800.0 million of Fixed Rate Senior Secured Notes offering and the Senior Facilities Agreement, as amended on May 3, 2017, to repay the €500.0 million floating rate senior secured notes due 2020.outstanding.

The indenture contains customary events of default and customary covenants including limitations on indebtedness, restricted payments, liens, restrictions on distributions from restricted subsidiaries, sales of assets and subsidiary stock, affiliate transactions, our activities, such as merger, conveyance, transfer or lease of all or substantially all of our assets, and compliance requirements with respect to additional guarantees, reporting, additional intercreditor agreements, payment of notes, withholding taxes, change of control, compliance certificate, payments for consent and listing requirements.
The Fixed Rate Senior Secured Notes are redeemable at our option in whole or in part on the terms detailed in the indenture.

Intercreditor Agreement

The finance parties under the Senior Facilities Agreement and the holders of the Fixed Rate Senior Secured Notes share the benefit of a security and guarantee package. The rights and obligations of the senior creditors and other creditors (including intra-group creditors) between themselves is controlled by an Intercreditor Agreement originally dated July 3, 2014, as amended, and restated on or about April 28, 2017, as may be further amended, supplemented or otherwise modified from time to time, upon not less than 10 nor more than 60 days' prior notice on or after May 15, 2020 at redemption prices specified in the indenture plus accrued and unpaid interest to the redemption date.time.

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Pension Plans
We maintain defined benefit pension plans in Germany, Sweden, Switzerland, Italy and Austria as well as various defined contribution plans in other countries. In addition, an unfunded post-retirement medical plan is operated in Austria. The defined benefit pension plans are partially funded in Germany and Austria and unfunded in Sweden and Italy. AllIn Switzerland, the plan obligations are met via a contract with a collective foundation that offers a fully insured solution to provide a contribution-based cash balance retirement plan. With the exception of Switzerland, the defined benefit pension plans are closed to new entrants and there is no current requirement to fund the deficit in any plan. We also maintain various defined contribution pension plans in other countries, the largest of which include Sweden and the United Kingdom.UK. In most countries, long term service awards are in operation.
For accounting purposes, as of December 31, 20172022 (based on the assumptions used), the deficit for the net employee benefit obligations equaled €188.4€132.1 million (December 31, 2016: €190.92021: €244.2 million).
For the year ended December 31, 20172022 pension costs related to defined benefit, defined contributions and long-term benefit plans equated to €18.2 million. For the year ended December 31, 2016 pension costs related to defined benefit, defined contributions and long-term benefit plans equated to€22.4 million (2021: €19.8 million; 2020: €17.3 million. For the nine months ended December 31, 2015, such costs equaled €8.2 million.million). This includes all costs related to the pension schemes and other long-term benefits plans as well as associated interest costs.
For additional information, see Note 23 “Employee benefits” to our audited consolidated financial statements which appear elsewhere in this annual report.Item 18.
A description of our principal accounting policies, critical accounting estimates and key judgments is set out in Note 3 and Note 4 to our audited consolidated statements which appear elsewhere in this annual report.

Other cash commitments

C.Research and development, patents and licenses, etc.
We are contractually obliged to short and long term commitments regarding raw material expenditures as well as for purchases of finished or semi-finished products. Agreements with co-packers that require significant investment from the counterparty are generally negotiated to cover several years of our operational needs. Furthermore, a high proportion of Advertising and promotional expenditure is negotiated and committed to through annual contracts. We also have long term service contracts which we have committed to make but which are not yet payable. These include those for the provision of logistical operations as well as software and IT support which typically cover a number of years. All of these purchase commitments represent a modest proportion of our annual expenditure. As of December 31, 2022 these commitments total €350.1 million.
Furthermore, a number of our tangible fixed assets are leased under short and long term contracts for which a maturity profile is presented within Note 33 “Financial Risk Management” to our consolidated financial statements in Item 18.
C.    Research and development, patents and licenses, etc.
Growing our core through our Must Win Battle strategy is our focus across fish, vegetables and local battles, e.g., chicken and pizza. Innovation is key to this and we have a strong pipeline of activities. Innovation is also a key driver of growth for our effortsGreen Cuisine business, which includes development of meat alternatives. Our focus is to create competitive advantage through delivery of innovations that address consumer needs and are enabled by science and technology. To achieve this we have embedded innovation in our strategy and seek to ensure that technologies are fully protected to maintain differentiation.

We are committed to ensuring product superiority on all our Must Win battles by focusing on taste, health and sustainability. We invest in external benchmarking activities to track product performance and renovation ofprograms are in place to ensure that our core products andcontinues to delight our investment in market research on ensuring that the products we launch overcome penetration barriers. In addition,consumers.

To support these activities, we operate a structured stage gateclear governance process through which we take new products from idea generation, through concept screening, concept/products laboratories and early volume sizing, to final validation.
We operate one central “Category Marketing Operationalwith a “Central Monthly Operating Review Board” (“CMOR”) which is responsible for reviewing and approving innovations acrossin our core Must Win Battles that span multiple markets. "Local Monthly Operating Reviews" ("LMOR") occur within each market and focus on the Company.local portfolio. Our researchResearch and developmentDevelopment team is centralized, allowingorganised around our Must Win Battles, both centrally and locally. This allows us to leverage our investment in research and development across our markets where scale can be achieved and move fast within individual markets to address local opportunities, thus maximizing our ability to generate successful innovationsdeliver to consumer needs efficiently.
We spent €15.4 million for the year ended December 31, 2017, €13.3 million in the year ended December 31, 2016, €12.1 million for the nine months ended December 31, 2015, €nil in the year ended March 31, 2015 and €7.2 million in the five months ended May 31, 2015 on company-sponsored research and development activities.
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D.Trend information

D.    Trend information
We are subject to the following key industry trends and challenges which have impacted, and may continue to impact, our business, operations and financial performance:performance.

1.
Consumer Preferences. Consumer preferences drive demand for our products. There are a number of trends in consumer preferences which are having an impact on us and the frozen food industry as a whole. These include preferences for speed, convenience and ease of food preparation; natural, nutritious and well-proportioned meals; and products that are sustainably sourced and produced and are otherwise environmentally friendly. Our results of operation depend in large part on the continued appeal of our products and, given the varied backgrounds and tastes of our customer base, our ability to offer a sufficient range of products to satisfy a broad spectrum of preferences. In order to address consumer needs and ensure the continued success of our products, we aim to introduce new products, renovate core products and extend existing product lines on a timely basis.

2.
Competition. In addition to the competition we face from traditional, well-established branded frozen food manufacturers, over the last few years we have seen increased competition from the discounter channel. Discounters are supermarket retailers which offer food and grocery products at discounted prices and which typically focus on non-branded rather than branded products. The discounter channel has been growing at a faster rate than the traditional retailer channels over the last several years. To address this growing trend, we intend to pursue opportunities to increase our presence with the discounter channel, particularly the hard discounter channel. With the growth of the discounter channel, in an effort to compete, our traditional retail customers have increased their offering of their own private label products. Because these customers control the shelf space allocations within their stores, they may allocate more shelf space to their private label products in accordance with their respective promotional strategies. To address decreases in shelf space allocated to our products, we have expanded our focus on “category captaincy”. As a “category captain”, we cooperate with retailers and invest in the strategic development of our food categories. As we increase our influence with retailers, we expect this will translate into an increased share of shelf space and provide more favorable positioning of our products relative to the competition.

3.
Shopping Habits. The online grocery retail channel is growing faster than traditional grocery retail formats across developed markets. Consumers with increasingly busy lifestyles are choosing the online grocery channel as a more convenient and faster way of purchasing their food products, and are also increasingly using the internet for meal ideas. Frozen foods particularly benefit from the online channel as the advantages to the consumer of outsourcing transportation of frozen food to the retailer are greater than in other categories, and also because some of the barriers to purchasing in-store (e.g. colder aisles) are removed for the consumer online. We are responding to the growing consumer shift to digital and mobile technologies, particularly in the United Kingdom, by

Accelerating costs in non-discretionary spend areas of energy, transport and housing costs has squeezed household budgets. As a result, households are looking for savings, with an anticipated reduction in eating out, entertainment and clothing.

investingInflation is expected to result in technology platforms and partneringa decline in the number of ‘comfortable’ households which have higher incomes who are typically less impacted by inflation. Conversely, ‘struggling’ households with retailers that are executing their own e-commerce strategies to meet changing consumer habits.
E.Off-balance sheet arrangements
We did not have any material off-balance sheet arrangements during the reported periods.
F.Tabular disclosure of contractual obligations
The following table summarizes our estimated material contractual cash obligations and commercial commitments as of December 31, 2017, and the future periods in which such obligationslow incomes are expected to increase in the near future. We believe these 'struggling’ households will manage their spend by buying more products on promotional deals, buying cheaper brands and private labels or shopping in cheaper stores including discounters.
As a result of these market dynamics, we expect that discounters and eCommerce will accelerate their gain of market share. For example, we expect the growth of discounters to continue. Also, across all channels retailers are responding to these new challenges by focusing on driving value for money, including aggressive price comparisons, smaller packs and increasing private label offerings, and operating efficiency to help maintain their margins through range optimization to mitigate costs and complexity.
We believe the differing consumer groups and the impact on their spending will result in ‘in-flows’ to the frozen category and our brands (gaining consumers) but we also anticipate ‘out-flows’ (losing consumers) from the frozen category and our brands.
See Item 5 - Conflict between Ukraine and Russia and Macroeconomic for a discussion of trends and uncertainties we are experiencing as a result of political disruptions.
E.    Critical Accounting Estimates and Judgments
Information relating to “Critical Accounting Estimates and Judgments” are described in Note 4 to the Financial Statements. The following is a review of the more significant assumptions and estimates as well as accounting policies we used to prepare our consolidated financial statements.
Discounts and trade promotions
Discounts given by the Company include rebates, price reductions and incentives given to customers, promotional couponing and trade communication costs. Each customer has a unique agreement that is governed by a combination of observable and unobservable performance conditions.
Trade promotions comprise of amounts paid to retailers for programs designed to promote Company products and include pricing allowances, merchandising funds and customer coupons, which are offered through various programs to customers and consumers. The ultimate costs of these programs can depend upon retailer performance and is the subject of significant management estimates. The estimated ultimate cost of the program is based upon the programs offered, timing of those offers, estimated retailer performance based on history, management’s experience and current economic trends.
At each financial year end date, any discount or trade promotion activity incurred but not yet invoiced is estimated and accrued for. In certain cases, the estimate for discounts and trade promotions requires the use of forecast information for future trading periods and therefore a degree of estimation uncertainty exists. These estimates are sensitive to variances between actual results and forecasts. The estimate is based on accumulated experience and the principle that revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. Management use judgment when considering when accruals can be settled in cash:released.
 Cash payments due by period
(€ in millions)Total Less than 1 year 1-3 years 3-5 years After 5 years
Long term debt1,409.5 5.1 10.2 10.2 1,384.0
Long term debt—interest (1)
292.4 46.3 92.0 91.2 62.9
Cross currency interest rate swap payments (2)916.2 29.1 57.3 829.8 —
Cross currency interest rate swap receipts (2)(885.5) (32.0) (63.0) (790.5) —
Forward contracts - Sell (2)484.0 484.0 — — —
Forward contracts - Buy (2)(479.6) (479.6) — — —
Operating leases (3)
168.3 17.8 26.1 17.8 106.6
Purchase commitments (4)
300.8 183.2 72.7 44.9 —
Total (5)
2,206.1 253.9 195.3 203.4 1,553.5
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(1)Represents estimates of future interest payable, which will depend upon the timing of cash flows as well as fluctuations in the applicable interest rates and the Company’s debt structure. These forecasts have been compiled using the debt structure as at December 31, 2017 with constant foreign exchange and interest rates until the debt matures in 2024.
(2)Cross currency interest rate swap payments and forward contracts are presented alongside receipts to show the net liability.
(3)Excludes contractual annual increases linked to inflation indices. A proportion of these contractual commitments are included in the consolidated balance sheet within provisions where no future economic benefit will be received.
(4)Represents capital and raw material expenditures as well as and long term service contracts which we have committed to make but which are not yet payable. Amounts also exclude provisions already included within the consolidated balance sheet.
(5)Retirement benefit obligations of €188.4 million are not presented above as the timing of the settlement of these obligations is uncertain. Certain long-term liabilities related to income taxes, insurance accruals, and other accruals included on the consolidated balance sheet are excluded from the above table as we are unable to estimate the timing of payments for these items.
G.Safe harbor
See the section entitled “Cautionary Statement Regarding Forward-Looking Statements”

Business combinations
The Company is required to recognize separately, at the beginningacquisition date, the identifiable assets, liabilities and contingent liabilities acquired or assumed in a business combination at their fair values. This involves a judgment as to what intangible assets can be separately identified as well as an estimate of fair value of all assets and liabilities acquired. Such estimates are based on valuation techniques, which require considerable estimation in forecasting future cash flows and developing other assumptions. These estimates are based on information available on the acquisition date and assumptions that have been deemed reasonable by management.
Significant areas of judgment and estimation include valuing tangible and intangible assets, including the determination of their remaining useful lives, as well as the consideration of liabilities, including provisions for uncertain tax positions. Where such items are material to the financial statements, we engage third-party valuation firms to assist in the valuation. The valuation of these assets and liabilities is based on the assumptions and criteria which include, in some cases, estimates of future cash flows discounted at the appropriate rates. The choice of assumptions and valuation technique can lead to significant differences in the valuation. We believe that the assumptions and techniques applied are reasonable based on information available on the date of acquisition.
As disclosed in Note 14 in Item 18, one significant acquisition was made in 2021 with the acquisition accounting for this annual report.finalized during 2022.
Impairment was not required as at December 31, 2022. Valuations derived from the discounted cash flow model indicate a sufficient amount of headroom for which any reasonably possible change to key assumptions will not result in an impairment of the related goodwill and indefinite life brands.

Employee benefit obligation

The Group operates a number of defined benefit pension schemes and post-employment benefit schemes which are valued by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods. Each scheme has an actuarial valuation performed and is dependent on a series of assumptions to estimate the projected obligations. The assumptions include variables which are revised periodically, that include discount rates, expected salary increases, inflation, employee turnover, retirement age, mortality and medical care costs. Our assumptions reflect historical experience and management's best judgment regarding future obligations. The assumptions used affect the current service cost and interest expense as well as changes in the obligation recognized. Net actuarial gains or losses arising from changes in assumptions and from experience are recognized in other comprehensive income/(loss).

Since defined benefit pension schemes and post-employment benefit schemes are measured on a discounted basis, the discount rate applied has an impact on the expense and obligation recognized. These discount rates are determined by reference to market yields at the end of the reporting period on high quality corporate bonds, except for Sweden where a deep market does not exist, where mortgage bonds are used. Our significant schemes operate in Germany and Sweden, where discount rates of 3.8% and 4.0% have been applied. A 1% increase in discount rates used throughout the Company would decrease the obligation by €28.5 million, whilst a 1% decrease in discount rates would increase the obligation by €35.8 million. The impact on profit before tax in either scenario is not significant. Management consider the discount rate to be the most significant assumption. Note 23 in Item 18 contains additional details on the schemes and obligation, including a sensitivity analysis over other key assumptions.
Item 6.Directors, Senior Management and Employees
A.Executive Officers and Directors
Uncertain tax positions
The Company operates in many different jurisdictions and in some of these, there are on-going tax audits and certain tax matters which are under discussion with local tax authorities. The Company considers these tax audits and discussions with local tax authorities as well as the local tax legislation relative to their tax positions in those jurisdictions when identifying uncertain tax positions. These discussions are often complex and can take many years to resolve, and are in different stages with respect to assessments, appeals and refunds. Where tax exposures can be quantified, a provision for uncertain tax positions is made based on management’s estimates and judgements with regard to the amounts expected to be paid to the relevant tax authority. Given the inherent uncertainties in assessing the outcomes of these exposures (which can sometimes be binary in nature), the Company could in future periods experience adjustments to these provisions. The factors considered include the progress of discussions with the tax authorities and the level of documentary support for historical positions taken by previous owners.

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Item 6.    Directors, Senior Management and Employees
A.    Executive Officers and Directors
The following table lists each of our executive officers and directors and their respective ages and positions as of March 22, 2018.
February 20, 2023.
NameDirector sinceAgePosition
Sir Martin E. FranklinApril 4, 20145358 
Co-Chairman
Noam GottesmanApril 4, 20145661 
Co-Chairman
Ian G.H. AshkenJune 16, 20165762 
Director
Jason AshtonN/A50
Interim Chief Financial Officer
Stéfan DescheemaekerMay 28,June 1, 20155762 
Chief Executive Officer and Director
Mohamed ElsarkyAugust 22, 201760
Director
Jeremy Isaacs CBEJames E. LillieMay 28, 201561 Director
Stuart M. MacFarlaneMay 8, 201955 Director
Victoria ParryFebruary 16, 20165457 
Director
Paul KenyonAmit PilowskyAugust 8, 2017May 9, 20225447 
Director
James E. LillieMelanie StackMay 28, 20154, 20215661 
Director
Lord Myners of Truro CBESamy ZekhoutApril 4, 20141, 20186960 
Lead IndependentChief Financial Officer and Director
Victoria ParryFebruary 16, 201652
Director
Simon WhiteNovember 30, 201659
Director

Set forth below is a brief biography of each of our executive officers and directors.

Sir Martin E.Ellis Franklin, KGCN, our co-founder and co-Chairman has been a director of Nomad since April 2014. Martin E. Franklin is the founder and CEO of Mariposa Capital, LLC, a Miami-based family investment firm focused on long-term value creation across various industries, and Chairman and controlling shareholder of Royal Oak Enterprises, LLC. Currently, Mr. FranklinSir Martin is also the Founder and Executive Chairman of Platform Specialty Products Corporation, a directorElement Solutions Inc, and co-Chairman of Restaurant Brands International Inc. and a Director of J2 Acquisition Limited. Mr. FranklinAPi Group Corporation. Sir Martin was the founderco-founder and Chairman of Jarden Corporation ("Jarden"(“Jarden”) from 2001 until April 2016 when Jarden merged with Newell Brands Inc ("Newell"(“Newell”). Mr. Franklin became serving also as its CEO from 2001 to 2011 and its Executive Chairman and Chief Executive Officer of Jarden in 2001, and served as Chairman and Chief Executive Officer until 2011, at which time he began service as Executive Chairman.from 2011-2016 . Prior to founding Jarden in 2001, Mr. FranklinSir Martin served as the Chairman and/or Chief Executive Officer of three public companies: Benson Eyecare Corporation, Lumen Technologies, Inc., and Bollé Inc. between 1992 and 2000. In the last five years, Mr. Franklin served as a director of the following public companies: Newell Brands, Inc., Burger King Worldwide, Inc. (until its transaction with Tim Hortons, Inc. and the creation of Restaurant Brands in December 2014) and Promotora de Informaciones, S.A.
Noam Gottesman, our co-founder and co-Chairman, has been a director of Nomad since April 2014. Mr. Gottesman is the Founder and Managing Partner of TOMS Capital LLC, which he founded in 2012. Mr. Gottesman is also serves as a co-founder and non-executive director of Radius Global Infrastructure Inc. (previously known as Digital Landscape Group, Inc. and prior to that known as Landscape Acquisition Holdings Limited, an acquisition vehicle that completed its $500 million initial public offering and listing on the London Stock Exchange in November 2017.Limited), a global aggregator of real property interests underlying wireless telecommunications cell sites. Mr. Gottesman was the co-founder of GLG Partners Inc. and its predecessor entities where he served in various chief executive capacities until January 2012. Mr. Gottesman served as GLG’s chief executive officer from September 2000 until September 2005, and then as its co-chief executive officer from September 2005 until January 2012. Mr. Gottesman was also chairman of the board of GLG following its merger with Freedom Acquisition Holdings Inc. and prior to its acquisition by Man Group plc. Mr. Gottesman co-founded GLG as a division of Lehman Brothers International (Europe) in 1995 where he was a Managing Director. Prior to 1995, Mr. Gottesman was an executive director of Goldman Sachs International, where he managed global equity portfolios in the private client group.
Ian G.H. Ashken serves as a director of APi Group Corporation (since 2017) and Element Solutions Inc. (since 2013). Previously, he was the co-founder of Jarden and served at various times as its Vice Chairman, President, Chief Financial Officer, Secretary and Presidenta director from June 2001 until the consummation of Jarden’s business combination with Newell in April 2016. Mr. Ashken was appointed to the Jarden board on June 25, 2001 and served as Vice Chairman, Chief Financial Officer and Secretary from September 24, 2001. Mr. Ashken was Secretary of Jarden until February 15, 2007 and Chief Financial Officer until June 12, 2014. Prior to Jarden, Mr. Ashken served as the Vice Chairman and/or Chief Financial Officer of three public companies, Benson Eyecare Corporation, Lumen Technologies, Inc. and Bollé Inc. between 1992 and 2000. Mr. Ashken is also serves as a director of Platform Specialty Products Corporation and is a director or trustee of a number of private companies and charitable institutions. During the last five years, Mr. Ashken also previously served as a director of Newell Brands, Inc. and Phoenix Group Holdings.

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Jason Ashtonbecame Interim Chief Financial Officer in August 2017. An experienced Finance Director, Jason joined Iglo Group in September 2013 and was most recently Group Finance Director at Nomad Foods Europe. A qualified chartered accountant, Jason spent twelve years at Cadbury, subsequently Mondelez International from 2001 to 2013 where he had a variety of senior finance and management roles. This included the role of Strategy Director for Central and Eastern Europe where he was responsible for mergers and acquisitions. Jason also spent a year as Chief Executive Officer and Chief Financial Officer of the private equity led baby food company, Plum Baby. His early management career included positions at Diageo, Tetley and KPMG. Mr. Ashton is a Fellow of the Institute of Chartered Accountants in England and Wales.
Stéfan Descheemaeker was appointed as the Chief Executive Officer of the Company and of Iglo on June 1, 2015. He was previously at Delhaize Group SA, the international food retailer, where he was Chief Financial Officer between 2008 and 2011 before becoming Chief Executive Officer of its European division until October 2013. Since leaving Delhaize Group SA, Mr. Descheemaeker has taken onheld board positions with Telenet Group Holdings N.V. and Group Psychologies, served as an industry advisor to Bain Capital and beenis currently a professor at the Université Libre de Bruxelles. Between 1996 and 2008, Mr. Descheemaeker was at Interbrew (now Anheuser-Busch InBev)InBev "ABInBev") where he was Head of Strategy & External Growth responsible for managing M&A and strategy, during the time of the merger of Interbrew and AmBev in 2004, and prior to that he held operational management roles as Zone President in the U.S., Central and Eastern Europe, and Western Europe. Mr. Descheemaeker started his career with Cobepa, at that time the Benelux investment company of BNP-Paribas. Mr. Descheemaeker currently servesserved as a Director on the Board of Anheuser-Busch InBev,ABInBev, a position he has held since 2008.
Mohamed Elsarky was President and CEO of Godiva Chocolatier Inc. from 20142008 to 2017, based in New York and London; he was also a member2019. Since June 2019, SDS Invest S.A represented by Mr. Descheemaeker has served as Chairman of the Board. Godiva Chocolatier is the leading global premium chocolate brandBoard of Verlinvest.
James E. Lillie has served as co-Chairman of APi Group Corporation since October 2019, and Mr Elsarky was responsible or the company’s global sales spanning more than 100 countries, with 800 retail stores, and several thousand points of sale in global travel retail and domestic market channels. Mr Elsarky joined Godiva in 2010 whenserved as its director from October 2017. Previously, he served as President International, directing the company’s strategy and operations across all markets outside US and Canada.Prior to that, Mr Elsarky served as an Operating Partner of Lion Capital, a leading private equity company based in London specializing in consumer brands. He was Executive Chairman of portfolio companies, identifying businesses for acquisition and developing strategies to develop them. He has direct responsibility for two such portfolio companies, Vaasan & Vaasan Group, the leading fresh bakery business in Finland and the Baltic region, and Ad van Gelovan, the market leader in frozen snacks in the Benelux. He was executive Chairman of both companies. From 2004-2006 Mr Elsarky served as President, Northern Europe, based in Paris, for United Biscuits, where he was appointed to lead the turnaround of its Northern European businesses. This included overseeing well-known brands including BN, Delacre, Sultana, McVities and Carr’s crackers. As Managing Director of Jacob’s Bakery from 2002-2004, then under ownership by Danone, Mr Elsarky’s key focus was to return the business to sustainable growth. He eventually recommended to the Danone Board the sale of Jacobs and opted to remain with the Jacobs’ team as it transitioned to United Biscuits. Earlier in his career, from 1988-2001, Mr Elsarky held a number of positions with Kellogg Company, in Australia, Asia and USA. He latterly became Chairman and CEO, Australia and New Zealand. Mr Elsarky is currently a Non-Executive Director of The East India Company in the U.K. He also served as Non-Executive Chairman of British Canoeing, member of the British Olympic Association, member of Australian Council for Children and Parenting and Kids Helpline Charity (Australia).
Jeremy Isaacs is a Founding Partner of JRJ Group. At JRJ Group, Mr. Isaacs is closely involved with the implementation and guidance of fund strategy, as well as the development and execution of portfolio company strategy. Prior to establishing JRJ Group, in late 2008, Mr. Isaacs held senior executive positions with Lehman Brothers with responsibility for businesses outside North America. Mr. Isaacs serves as a non-executive director of Marex Spectron, Food Freshness Technology and Landscape Acquisition Company. He participates in numerous philanthropic activities, holding a range of positions, including Trustee of The J Isaacs Charitable Trust, member of the Bridges Development Fund Advisory Board, and Trustee of the Noah’s Ark Children’s Hospice. Mr. Isaacs is an Honorary Fellow of the London Business School. He served as non-executive director of Imperial College Healthcare NHS Trust from October 2013 to September 2016, and was a member of the British Olympic Advisory Board between 2007 and 2012. Mr. Isaacs was appointed Commander of the Order of the British Empire (CBE) in the 2015 Queen’s Birthday Honours for his services to the NHS.
Paul Kenyon is Chief Financial Officer of C&J Clark Limited, the leading casual shoe brand with retail, online and wholesale operations in around 100 countries. He was previously Chief Financial Officer of Nomad Foods Limited from June 2015 until August 2017, having previously served as Chief Financial Officer of Iglo from June 2012. Mr. Kenyon joined the Iglo Group from AstraZeneca PLC where his most recent role was CFO for AstraZeneca’s Global Commercial business. Prior to that, Mr. Kenyon spent three years as Senior Vice President, Group Finance and for a period held the role of Chairman of AstraTech, AstraZeneca’s medical technology subsidiary, concluding with its


successful disposal. Mr. Kenyon’s prior career includes a broad range of senior finance roles at Allied Domecq PLC as well as experience gained at Mars, Incorporated and Courtaulds PLC. Mr. Kenyon is a Fellow of the Chartered Institute of Management Accountants.
James E. Lillie served as Jarden’sJarden's Chief Executive Officer from June 2011 until the consummation of Jarden’sJarden's business combination with Newell in April 2016. He joined Jarden inFrom 2003 to 2011 he served as Jarden's Chief Operating Officer and was named President in 2004 and CEO in June 2011.(from 2004). From 2000 to 2003, Mr. Lillie served as Executive Vice President of Operations at Moore Corporation, Limited. From 1999 to 2000, he served as Executive Vice President of Operations at Walter Industries, Inc., a Kohlberg, Kravis, Roberts & Company (KKR) portfolio company. From 1990 to 1999, Mr. Lillie held a succession of senior level management positions across a variety of disciplines including human resources, manufacturing, finance and operations at World Color, Inc., another KKR portfolio company. During the last five years, Mr. Lillie serves on the board of the US-China Business Council (USBC), a private, nonpartisan, nonprofit organization of American companies that do business in China. Since February 2017, Mr. Lillie has served on the board of directors of Tiffany & Co. and since October 2017 has served on the board of directors of J2 Acquisition Limited.
Lord Myners is Chancellor of the University of Exeter and a member of Court and Council of the London School of Economics and Political Science. He served as the Financial Services Secretary in Her Majesty’s Treasury, the United Kingdom’s finance ministry, from October 2008 to May 2010. Prior to his service at the Treasury, Lord Myners served as chairman or a member of the board of several organizations, including as chairman of Guardian Media Group from 2000 to 2008, director of GLG Partners Inc. from 2007 to 2008, Director of Land Securities Group plc from 2006 to 2008 (chairman from 2007 to 2008), chairman of Marks & Spencer plc from 2004 to 2006, and chairman of Aspen Insurance Holdings Ltd from 2002 to 2007. Lord Myners served as chairman of Platform Acquisition Holdings Limited (now known as Platform Specialty Products Corporation) from April 2013 until its business combination with MacDermid, Incorporated in October 2013. He also served as the chairman of Justice Holdings Limited, a special purpose acquisition company, from February 2011 until its business combination with Burger King Worldwide, Inc. in June 2012. From 1986 to 2001, hepreviously served as a director of Gartmore Investment Management Limited.Tiffany & Co.

Stuart M. MacFarlane joined the Whitbread Beer Company in 1992, which was later acquired by Interbrew and, subsequently ABInBev. At ABInBev, Mr. MacFarlane held various senior roles, including in Finance, Marketing, Sales and as Managing Director for the company’s business in Ireland. He has also servedwas appointed President of ABInBev UK & Ireland in an advisory capacity to the United Kingdom Treasury2008 and the United Kingdom Department of Trade & Industry, with particular focus on corporate governance practices. Other positions held by Lord Myners have included chairman of the Trustees of Tate, chairman of the Low Pay Commission,in 2012 became a member of the CourtExecutive Board of Management, serving as President of Central & Eastern Europe. Mr. MacFarlane most recently served as ABInBev’s President of a combined Europe & Middle East from 2014 to May 2019. He is also a Board Director and Chair of the Bank of England,Audit Committee at JDE Peets'. Mr. MacFarlane has a member ofdegree in Business Studies from Sheffield University in the Investment Board of GIC, Singapore’s sovereign wealth fund. Lord MynersUK and is currently serving asalso a non-executive director of Windmill Hill Asset Management. He is vice chairman of Global Counsel, the non-executive chairman of Autonomous Research LLP, chairman and a partner of Cevian Capital LLP and Chairman of Daniel J Edelman (UK). Lord Myners is a graduate, with honors, from University of London and has an honorary doctorate from the University of Exeter. He is a Visiting Fellow at Nuffield College, Oxford and an Executive Fellow at London Business School. He is a crossbench member of the UK’s House of Lords, the senior chamber in Parliament.qualified Chartered Management Accountant.

Victoria Parry was Global Head of Product Legal for Man Group plc until April 2013 and now acts as an independent non-executive director in the financial services sector. Mrs. Parry is an independent non-executive director to funds affiliated with Guardian Capital Group Limited, Pacific Capital Partners Ltd., Dimensional Holdings, Inc, and consultant to the funds industry.LSV Funds Plc. Prior to the merger of Man Group plc with GLG Partners, Inc. in 2010, she was Senior Legal Counsel for GLG Partners LP. Ms.Mrs. Parry joined Lehman Brothers International (Europe) in April 1996 where she was Legal Counsel with responsibility for inter alia the activities of the GLG Partners division and left Lehman Brothers in September 2000 upon the establishment of GLG Partners LP. Prior to joining Lehman Brothers in 1996 Ms.Mrs. Parry practiced as a solicitor with a leading London based firm of solicitors. Ms.Mrs. Parry graduated from University College Cardiff, with a LLB (Hons) in 1986. Ms.Mrs. Parry is a non-practicing solicitor and a member of the Law Society of England and Wales. Ms.From July 2019 to April 2022, Mrs. Parry served as a non-executive director to funds affiliated with Fiera Capital Corporation. Mrs. Parry is a director of a number of other private companies.
Simon White was, until 2014,
Amit Pilowsky is the Founder and Managing Partner of Key1 Capital, a global investment firm primarily focused on Israeli and Israeli-related growth technology companies. Prior to founding Key1 Capital in January 2022, Mr. Pilowsky held various leadership roles at Goldman Sachs in its London and Tel Aviv offices from February 2005 to May 2021, including Head of the Consumer and Retail team at the Cross Markets Group in EMEA and as sector captain for Food, Beverage and Food Ingredients in EMEA. During his time at Goldman Sachs, Mr. Pilowsky led teams in numerous deals across mergers and acquisitions and capital markets transactions in the consumer and retail, food, beverage and food ingredient industries. From July 1993 to January 2004, Mr. Pilowsky served in the Israeli Air Force, retiring as a Major. Since December 2021, Mr. Pilowsky has also served as a director of Movendo Capital, a registered investment company. Mr. Pilowsky holds an MBA from INSEAD, France.

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Melanie Stack served as President and Chief OperatingExecutive Officer of Man Group PLC where he wasIdeal Protein, a member of the Executive Committee.medically-based weight-loss company, between November 2018 and December 2021. Prior to joining Ideal Protein, Ms. Stack served as President EMEA of Newell Home Fragrance Division from May 2014 to September 2018. Prior to that, Ms. Stack served as a Non-Executive Director of Bromley Healthcare, a leading provider of community health services in the mergerUnited Kingdom, from November 2012 to May 2014, in various roles at Weight Watchers International, a leading provider of Manweight management services, from December 2003 to May 2013, ran the UK-based toy, game and trading card operations for Hasbro, Inc. from January 2002 to November 2003 and served as the Vice President for WeightWatchers.com from November 2000 to January 2002. Prior to joining WeightWatchers.com, Ms. Stack was Managing Director, Hedstrom, U.K. from August 1998 to October 2000, and from July 1989 to July 1998 she held various marketing positions at Mattel UK Ltd., including Group PLC with GLG Partners, Inc. in 2010, Mr. WhiteMarketing Director. Ms. Stack is a business graduate of Manchester Metropolitan University.

Samy Zekhout has served as Chief OperatingFinancial Officer of GLG Partners, Inc. from its inceptionNomad since April 1, 2018. Prior to joining the Company, Mr. Zekhout most recently served as CFO and was also Chief Financial Officer until mid-2008. From 1993 to 2000 he workedVice President of Global Grooming at Lehman Brothers in a numberProcter & Gamble since 2007. Mr. Zekhout has held various finance roles at Procter & Gamble throughout the course of different roles. Since 2014, Mr. White has been involved in leadership roles in a range of early stage businesses with a special focus on FinTech, and is currently a director of Axim Holdings Limited.his more than 30-year career at that company. In 2017 heFebruary 2021, Mr Zekhout became a non-executive directorboard member of Ask Inclusive FinanceAlgama, a French food-tech start-up.
B.    Compensation of Executive Officers and in January 2018 became a non-executive director of Bridge Invest Limited. Mr. White is a Fellow of the Institute of Chartered Accountants in England and Wales.Directors


B.Compensation of Executive Officers and Directors
This section sets forth for the year ended December 31, 2017:2022: (i) the aggregate compensation and benefits provided to our executive officers, (ii) a brief description of the bonus programs in which our executive officers participated, and (iii) the total amounts set aside for pension, retirement and similar benefits for our executive officers. This section also describes the Nomad Foods Amended and Restated Long Term 2015 Incentive Plan (“LTIP”) including a summary of the material terms of the LTIP, a description of current executive employment agreements and equity awards granted thereunder, and a description of our director compensation program.
Executive Compensation
Executive Officer Compensation and Benefits for the year ended December 31, 20172022
For the year ended December 31, 2017,2022, Nomad’s executive officers received total compensation, including base salary, cash and equity bonus, and certain perquisites, equal to €3.2€4.7 million in the aggregate.
Pension, Retirement and Similar Benefits
Our executive officers who participate in our money purchase pension plans do so on generally the same terms as our other employees. The aggregate amount of the employer contributions to this plan for our executive officers during the year ended December 31, 20172022 was less than €0.1 million.
Employment Agreements
Chief Executive Officer. Stéfan Descheemaeker was appointed as the Chief Executive Officer of the Company and as a Director of the Company effective on June 1, 2015. He entered into his Service Agreement with us on June 17, 2015. He entered into a new Service Agreement with the Company on May 1, 2020. Under the agreement, Mr. Descheemaeker will receive an annual salary that will be reviewed, but not necessarily increased, on an annual basis .The first review took place in 2017 which increasedbasis. Mr. Descheemaeker's salary to £714,000.was reviewed in 2022 resulting in an increased salary of £800,000. Mr. Descheemaeker is entitled to receive the following benefits under the terms of his agreement:
(a)an annual contribution of £70,000, paid either to a pension plan or to Mr. Descheemaeker directly (as he so directs);
(b)eligibility for performance-related discretionary cash bonuses (up to 100% of salary), subject to the achievement of financial and other performance targets as we may decide;
(c)an award of 2,000,000 ordinary shares in the Company, 50% of which will vest on the Company exceeding an agreed EBITDA target and 50% of which will vest subject to the Company’s shares achieving a specified target price. Both tranches of shares are also subject to further vesting conditions relating to Mr. Descheemaeker’s tenure as Chief Executive Officer; and
(d)an annual car allowance of £14,400, death in service benefit (three times salary), permanent health insurance (£500,000) and family medical insurance.
(a)an annual contribution of 10% of his salary paid either to a pension plan or to Mr. Descheemaeker directly (as he so directs);
(b)eligibility for performance-related discretionary cash bonuses (target performance equating to 100% of salary), subject to the achievement of financial and other performance targets as the Company may decide;
(c)the Company will annually advise Mr. Descheemaeker by letter of the award that he will be granted under the Company's Long Term Incentive Plan (as amended, the "LTIP") in the third year following the date of such letter (subject to the LTIP and vesting and performance provisions); and
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(d)an annual car allowance of £14,400, death in service benefit (three times salary), group income protection (offering 75% of base salary less £5,000) and family medical insurance.
We have the right to place Mr. Descheemaeker on paid leave for up to six months of his 12 month notice period. Mr. Descheemaeker is subject to confidentiality provisions and to non-competition and non-solicitation restrictive covenants for a period of between six and 12 months after the termination of his employment, subject to an off-set for paid leave. We may terminate Mr. Descheemaeker’s employment at any time by serving a notice stating that we will pay to Mr. Descheemaeker within 14 days a sum equal to the basic salary (as at the date of the employment agreement), pension payment and car allowance in lieu of any required period of notice less certain deductions. We may also terminate Mr. Descheemaeker’s employment agreement without any payment of compensation, damages, payment in lieu of notice or otherwise under certain circumstances, including, among other things, gross misconduct, material breach of the terms of such agreement or charge or conviction of a criminal offence.
Chief Financial Officer. Samy Zekhout was appointed as the Chief Financial Officer of the Company and as a Director of the Company effective on April 1, 2018. He entered into his Service Agreement with us on February 15, 2018. Under the agreement, Mr. Zekhout will receive an annual salary that will be reviewed, but not necessarily increased, on an annual basis. A review took place in February 2022, with a base salary increase of 2.25% effective April 1, 2022, which took his annual salary to £467,300. Mr. Zekhout was or is entitled to receive the following benefits under the terms of his agreement:
(a)     an annual contribution of 10% of his base salary, paid either to a pension plan or to Mr. Zekhout directly (as he so directs);
(b)     eligibility for performance-related discretionary cash bonuses (up to 100% of salary with an opportunity to increase this to 200% depending on business performance), subject to the achievement of financial and other performance targets as the Company may decide;
(c)     the Company will annually advise Mr. Zekhout by letter of the award that he will be granted under the Company's Long Term Incentive Plan (as amended, the "LTIP") in the third year following the date of such letter (subject to the LTIP and vesting and performance provisions); and
(d)     an annual car allowance of £13,200, death in service benefit (three times salary), group income protection (offering 75% of base salary less £5,000) and family medical insurance.
    We have the right to place Mr. Zekhout on paid leave for his notice period. Mr. Zekhout is subject to confidentiality provisions and to non-competition and non-solicitation restrictive covenants for a period of 12 months after the termination of his employment, subject to an off-set for paid leave. We have the right to terminate Mr. Zekhout’s employment at any time by serving a notice stating that we will pay to Mr. Zekhout within 14 days a sum equal to the basic salary (as at the date of the employment agreement), in lieu of any required period of notice less certain deductions. We also have the right to terminate Mr. Zekhout’s employment agreement without any payment of compensation, damages, payment in lieu of notice or otherwise under certain circumstances, including, among other things, gross misconduct, material breach of the terms of such agreement or charge or conviction of a criminal offence.
Nomad Foods 2015Limited Amended and Restated Long Term 2015 Incentive Plan (“LTIP”)
Eligibility
The LTIP is discretionary and will enableenables the Compensation Committee to make grants (“Awards”) to any director or employee of the Company, although the current intention of the Committee is that Awards be granted only to directors and senior management.
Awards
Under the LTIP, the Committee or Board may grant Awards in the form of rights over ordinary shares. Where an Award vests, the participant will receive ordinary shares free and clear of any restrictions, other than those imposed by applicable securities laws.

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Performance conditions
The vesting of Awards will be subject to conditions determined by the Committee. The current policy of the Committee is for vesting to be both time-based and related to the financial performance of the Company. Generally, the vesting period (i.e. the period over which performance is to be measured) will be between three and five years, and the ordinary shares subject to the Award will vest subject to the participant remaining an employee of the Company at the vesting date and any performance targets relating to the Award having been fulfilled.fulfilled (and in some circumstances an Award will lapse on the participant giving or receiving notice).
Permitted dilution
No Award may be granted on any date if, as a result, the total number of ordinary shares issued or remaining issuable pursuant to Awards or options granted in the previous ten years under the LTIP or any other employees’ share plan operated by the Company would exceed 10% of the issued ordinary share capital of the Company on that date.
Awards may at the discretion of the Committee be satisfied out of new issue shares, treasury shares or shares provided out of an employee trust. Ordinary shares issued will rank pari passu with ordinary shares in issue at that time, save in relation to rights arising by reference to a record date before the date of issue. Participants will not be entitled to votes or dividends on the ordinary shares subject to Awards until such Awards vest.
Early vesting
Unless otherwise determined by the Committee, if a participant ceases to be employed by the Company due to death, disability, or otherwise as a good leaver, as determined by the Committee Awards will vest to the extent performance targets (adapted, if necessary, at the discretion of the Committee, to take into account the shortened vesting period) have been achieved and subject to the Committee’s discretion to waive the performance targets in whole or in part. If a participant ceases employment for any other reason their Award(s) will lapse to the extent unvested at the date of cessation.
Change of Control
Unless otherwise determined by the Committee, in the event of a Change of Control or winding up of the Company (including by reason of an offer or scheme of arrangement), Awards will vest in accordance with the performance targets applied upat the date of the Change of Control, subject to the Committee’s discretion to waive such targets in whole or in part.
Variation in share capital
The Committee may make such adjustments to Awards as it considers appropriate to preserve their value in the event of any variation in the ordinary share capital of the Company or to take account of any demerger or special dividend paid (or similar event which materially affects the market price of ordinary shares).
Amendments
The Committee may amend the LTIP as it considers appropriate, subject to the written consent of participants to changes to their disadvantage to existing Awards. Shareholder approval is required to increase the permitted dilution limits.
General
Benefits under the LTIP will not be pensionable. Awards are not transferable except to the participant’s personal representatives on death.
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Director Compensation
In 2017,2022, each of our non-executive directors (other than Messrs. Gottesman and Franklin) received, and are entitled to receive in 20182023, $50,000 per year together with an annual restricted stock grant issued under the LTIP equal to $100,000 of ordinary shares valued at the date of issue, which vest on the earlier of the date of the following year’s annual meeting of shareholders or 1312 months from the issuance date. For those Directors who are members of board committees, each member is entitled to receive an additional $2,000 per year. The chairman of the Audit Committee, currently, is entitled to receive $10,000 per year and the chairmen of the Compensation and Nominating and


Corporate Governance Committees, currently and respectively, are entitled to receive $7,500 per year. Messrs. Gottesman and Franklin will not receive a fee in relation to their services as Directors.
Director fees are payable quarterly in arrears. In addition, all of the Directors are entitled to be reimbursed by us for travel, hotel and other expenses incurred by them in the course of their directors’ duties.
C.    Board Practices
Board Composition and Election of Directors
Our board of directors currently consists of eleventen members. Our Memorandum and Articles of Association provides that our board of directors must be composed of at least one director. The number of directors is determined from time to time by resolution of our board of directors. Messrs. Gottesman and Franklin serve as Co-Chairmen of our board of directors. The Co-Chairmen have primary responsibility for providing leadership and guidance to our board and for managing the affairs of our board. Lord MynersJames E. Lillie is our lead independent director.
Pursuant to our Memorandum and Articles of Association, our directors are appointed at the annual meeting of shareholders for a one yearone-year term, with each director serving until the annual meeting of shareholders following their election. In addition, for so long as an initial holder of Founder Preferred Shares holds 20% or more of the Founder Preferred Shares in issue, such holder is entitled to nominate, and the directors are required to appoint, a person as director. For additional information regarding our board of directors, see Item 6A: Directors, Senior Management and Employees—Employees - Executive Officers and Directors.
Our non-executive directors do not have service contracts with us or any of our subsidiaries providing for benefits upon termination of employment.
Committees of the Board of Directors
Our board of directors has three standing committees: an Audit Committee, a Compensation Committee and a Nominating and Corporate Governance Committee.
Audit Committee
OurAs of December 31, 2022, our Audit Committee consistsconsisted of three directors: Messrs. Lillie and WhiteMacFarlane and Ashken,Ms. Stack, and Mr. Lillie servesserved as its chairman. Our Audit Committee is responsible for, among other things, assisting the board of directors in its oversight of the integrity of our financial statements, of our compliance with legal and regulatory requirements, and of the independence, qualifications and performance of our independent auditors. In addition, it focuses on compliance with accounting policies and ensuring that an effective system of internal and external audit and financial controls is maintained, and oversees our policies and procedures with respect to risk assessment and risk management. Our Audit Committee will meet at least quarterly with management and the independent auditors and report on such meetings to the board of directors. The responsibilities of our Audit Committee as set forth in its charter include oversight of the following: external audit, financial reporting, public disclosure, internal controls, risk management and compliance and whistleblowing.
Compensation Committee
OurAs of December 31, 2022, our Compensation Committee consistsconsisted of three directors: Messrs. Isaacs, Ashken and MacFarlane and Ms. Parry, and Mr. Isaacs servesAshken served as its chairman. Our Compensation Committee is responsible for determining the compensation of our executive officers. The responsibilities of our Compensation Committee as set forth in its charter include the following: assisting the board in evaluating potential candidates for executive positions, determining the compensation of our chief executive officer, making recommendations to the board with respect to the compensation of other executive officers, reviewing our incentive compensation and other equity-based plans, and reviewing, on a periodic basis, director compensation.
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Nominating and Corporate Governance Committee
OurAs of December 31, 2022, our Nominating and Corporate Governance Committee (the “N&CG Committee”) consistsconsisted of three directors: Messrs. Ashken, Lillie and Ms. Parry and Mr. Elsarky, and Lord Myners, and Lord Myners servesAshken served as its chairman.


Our N&CG Committee is responsible for considering and making recommendations to the board of directors in respect of appointments to the board. The responsibility of our N&CG Committee as set forth in its Charter include the following: recommending directors to the board to serve as members of each committee, developing and recommending a set of corporate governance principles applicable to our company and overseeing board evaluations. It is also responsible for regularly reviewing the structure, size and composition of the board and making recommendations to the board with regard to any changes it deems necessary.
D.Employees
D.    Employees
As of December 31, 2017,2022, we had approximately 3,8757,535 employees, with suchincluding 597 temporary staff. In addition, we employed approximately 711 agency workers being supplemented within 2022. We source the majority of our temporary staff during peak periods.workers from agencies to allow us to quickly respond and adapt to production demands. Approximately 67%54% of our employees work in our manufacturing operations, with the remaining employees involved in sales, marketing, finance, administration, procurement, logistics, product development, IT and other areas. As of December 31, 2017, we had approximately 801 employees in the United Kingdom, approximately 1,267 employees in Germany, approximately 335 employees in France, approximately 451 employees in Italy and approximately 536 employees in Sweden/Norway. Following are the number of employees by region for the last three years:
Region202220212020
Germany1,3381,4371,374
United Kingdom1,3551,3891,333
Serbia1,1691,302—
Croatia977853—
Italy481494479
Sweden/Norway406378397
Bosnia & Herzegovina319348—
France305333343
Other1,1851,468964
Total7,5358,0024,890
Region2017 2016 2015
United Kingdom801 809 876
Germany1,267 1,208 1,258
Italy451 454 476
Sweden/Norway536 932 987
France335 338 371
Other485 425 427
Total3,875 4,166 4,395

A substantial number of our employees are members of trade unions, inincluding (but not limited to) the United Kingdom,UK, Germany, or Italy. In total, approximately 50%Italy, France, Sweden, Norway, Croatia, Serbia, Bosnia & Herzegovina and Spain. Trade union membership is not required to be disclosed by employees. Many of our employees are members of a trade union. Our plants are all governed by collective agreements with the respective unions. Our relationships with the trade unions are currently stable.
E.Share Ownership
E.    Share Ownership
The following table sets forth, as of MarchFebruary 20, 2018,2023, certain information regarding the beneficial ownership of our ordinary shares by:
•each of our current directors;
•each of our named executive officers officers for the fiscal year ended December 31, 2017;2022; and
•all of our current directors and current executive officers as a group.
Percentages are based on the 173,968,388174,240,609 ordinary shares that were issued and outstanding on March 13, 2018.


February 20, 2023.
69

Director and Executive Officers:Number
  Percentage
Martin E. Franklin7,162,966
(1) 4.1
Noam Gottesman10,044,153
(2) 5.8
Ian G.H. Ashken708,197
(3) *
Jason Ashton18,862
(4) *
Stéfan Descheemaeker2,380,953
(5) 1.4
Mohamed Elsarky—
(6) -
Tania Howarth11,235
  *
Jeremy Isaacs11,136
(7) *
Paul Kenyon10,688
(8) *
James E. Lillie708,302
(9) *
Lord Myners of Truro CBE83,164
(10) *
Victoria Parry6,444
(11) *
Simon White26,666
(12) *
Directors and Executive Officers as a Group (12 persons)21,172,766
  12.2
*Represents beneficial ownership of less than one percent of ordinary shares outstanding.
(1)Consists of (i) 4,089,428 ordinary shares held indirectly through the Martin E. Franklin Revocable Trust, (ii) 750,000 Founder Preferred Shares held indirectly through Mariposa Acquisition II, LLC (which are convertible at any time at the option of the holder into ordinary shares on a one-for-one basis) and (iii) 2,323,538 ordinary shares held indirectly through RSMA, LLC. Mr. Franklin holds sole voting and investment power over such shares. Mr. Franklin may be deemed to beneficially own 69% of Mariposa Acquisition II, representing 517,500 Founder Preferred Shares. Mr. Franklin disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein.
(2)Includes (i) 9,294,153 ordinary shares of which 7,413,200 are held by TOMS Acquisition I LLC and 1,880,953 are held by TOMS Capital Investments LLC and (ii) 750,000 Founder Preferred Shares which are convertible at any time at the option of the holder into ordinary shares on a one-for-one basis and all of which are held by TOMS Acquisition I LLC. Mr. Gottesman is the managing member and majority owner of TOMS Acquisition I LLC and TOMS Capital Investments LLC and may be considered to have beneficial ownership of TOMS Acquisition I LLC’s and TOMS Capital Investments LLC’s interests in the Company. Mr. Gottesman owns or controls, directly or indirectly, 76% of TOMS Acquisition I LLC and 100% of TOMS Capital Investments LLC. Mr. Gottesman disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein.
(3)Includes 697,061 ordinary shares held by Tasburgh, LLC, of which Mr. Ashken is the Manager and has a controlling interest and excludes an indirect pecuniary interest in 56,250 Founder Preferred Shares (which are convertible at any time at the option of the holder into ordinary shares on a one-for-one basis) held by Mariposa Acquisition II, LLC. Also excludes 6,954 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, all of which will vest on the earlier of (i) the date of the Company’s annual meeting of shareholders in 2018 or (ii) July 19, 2018.
(4)Includes 18,750 ordinary shares issuable under currently outstanding equity awards issued under the LTIP which will vest no earlier than January 1, 2018 subject to the Company's shares achieving a specified target price. Excludes 56,250 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, 37,500 of which will vest on the Company exceeding an agreed EBITDA target and 18,750 of which will vest subject to the Company’s shares achieving a specified target price, such vesting to take place no earlier than January 1, 2020.
(5)Represents an indirect interest held by Olidipoli Sprl, a company owned by Mr. Descheemaeker. Excludes 2,000,000 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, 50% of which will vest on the Company exceeding an agreed EBITDA target and 50% of which will vest subject to the Company’s shares achieving a specified target price, in each case, subject to further vesting conditions relating to Mr. Descheemaeker’s tenure as Chief Executive Officer.
(6)Excludes 5,754 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, all of which will vest on the earlier of (i) the date of the Company's annual meeting of shareholders in 2018 or (ii) July 19, 2018.

Director and Executive Officers:NumberPercentage
Sir Martin E. Franklin10,263,463 (1)5.9 
Noam Gottesman12,818,221 (2)7.4 
Ian G.H. Ashken485,443 (3)*
Stéfan Descheemaeker3,792,401 (4)2.2 
James E. Lillie840,060 (5)*
Stuart MacFarlane— (6)*
Victoria Parry21,287 (7)*
Amit Pilowsky— (8)*
Melanie Stack1,618 (9)*
Samy Zekhout16,393 (10)*
Directors and Executive Officers as a Group (10 persons)28,238,886 16.2 

*    Represents beneficial ownership of less than one percent of ordinary shares outstanding.
(7)Excludes 6,954 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, all of which will vest on the earlier of (i) the date of the Company’s annual meeting of shareholders in 2018 or (ii) July 19, 2018.
(8)Excludes 6,020 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, all of which will vest on the earlier of (i) the date of the Company's annual meeting of shareholders in 2018 or (ii) July 19, 2018.
(9)Includes 697,061 ordinary shares held by Powder Horn Hill Partners II, LLC, of which Mr. Lillie is the Managing Member, and excludes an indirect pecuniary interest in 56,250 Founder Preferred Shares (which are convertible at any time at the option of the holder into ordinary shares on a one-for-one basis) held by Mariposa Acquisition II, LLC. Also excludes 6,954 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, all of which will vest on the earlier of (i) the date of the Company’s annual meeting of shareholders in 2018 or (ii) July 19, 2018.
(10)Includes 50,000 ordinary shares issuable pursuant to a five-year option that expires on June 2, 2020 at a purchase price of $11.50 per share. Excludes 6,954 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, all of which will vest on the earlier of (i) the date of the Company’s annual meeting of shareholders in 2018 or (ii) July 19, 2018.
(11)Excludes 6,954 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, all of which will vest on the earlier of (i) the date of the Company’s annual meeting of shareholders in 2018 or (ii) July 19, 2018.
(12)Excludes 6,954 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, all of which will vest on the earlier of (i) the date of the Company's annual meeting of shareholders in 2018 or (ii) July 19, 2018.
(1)Consists of (i) 6,722,212 ordinary shares held indirectly through the Martin E. Franklin Revocable Trust and (ii) 3,541,251 ordinary shares held indirectly through RSMA, LLC. Sir Martin disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein.
Item 7.Major Shareholders and Related Party Transactions
(2)Consists of (i) 2,023,560 ordinary shares held indirectly through TOMS Acquisition I LLC, (ii) 6,708,560 ordinary shares held indirectly through TOMS Capital Investments LLC, (iii) 1,514,652 ordinary shares held indirectly through an entity wholly-owned by Mr. Gottesman and (iv) 1,821,449 ordinary shares held by certain members of TOMS Acquisition I LLC that are subject to an irrevocable proxy agreement granted to Mr. Gottesman and (v) 750,000 ordinary shares held by Lavender Fiduciary Management Inc., as a trustee of various trusts established by certain members of TOMS Acquisition I LLC, that are subject to an irrevocable proxy agreement granted to Mr. Gottesman. Mr. Gottesman is the managing member and majority owner of TOMS Acquisition I LLC and TOMS Capital Investments LLC and may be considered to have beneficial ownership of TOMS Acquisition I LLC’s and TOMS Capital Investments LLC’s interests in the Company. In addition, Mr. Gottesman owns or controls, directly or indirectly, 77.5% of TOMS Acquisition I LLC and 100% of TOMS Capital Investments LLC. Mr. Gottesman disclaims beneficial ownership of such shares to the extent of his pecuniary interest therein.
(3)Includes (i) 477,315 ordinary shares held by Tasburgh, LLC and (ii) 8,128 held by The Ian G.H. Ashken Living Trust of which Mr. Ashken is the sole settlor and trustee. Mr. Ashken is the Managing Manager of Tasburgh, LLC. Excludes 4,946 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, all of which will vest on the earlier of (i) the date of the Company’s annual meeting of shareholders in 2023 or (ii) August 1, 2023.
(4)Includes 2,593,897 ordinary shares held indirectly through Olidipoli Sprl, a company owned by Mr. Descheemaeker. Excludes (i) 300,000 ordinary shares issuable under the LTIP which will vest in February 2023 and (ii) 300,000 ordinary shares issuable under the LTIP, which will vest on February 1, 2024, both of which will vest subject to performance based vesting conditions (and in each of cases (i) and (ii), subject to further vesting conditions relating to Mr. Descheemaeker’s tenure as Chief Executive Officer).
(5)Includes 785,987 ordinary shares held directly by Mr. Lillie and his spouse, (ii) 100,000 ordinary shares held directly by a family charitable foundation and (iii) 56,250 shares held directly by ZWC, LLC an entity managed by Mr. Lillie. Excludes 4,946 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, all of which will vest on the earlier of (i) the date of the Company’s annual meeting of shareholders in 2023 or (ii) August 1, 2023. Mr. Lillie disclaims beneficial ownership of such ordinary shares except to the extent of his pecuniary interest therein.
(6)Excludes 4,946 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, all of which will vest on the earlier of (i) the date of the Company’s annual meeting of shareholders in 2023 or (ii) August 1, 2023.
(7)Excludes 4,946 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, all of which will vest on the earlier of (i) the date of the Company’s annual meeting of shareholders in 2023 or (ii) August 1, 2023.
70

(8)Excludes 4,946 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, all of which will vest on the earlier of (i) the date of the Company’s annual meeting of shareholders in 2023 or (ii) August 1, 2023.
(9)Excludes 4,946 ordinary shares issuable under currently outstanding equity awards issued under the LTIP, all of which will vest on the earlier of (i) the date of the Company’s annual meeting of shareholders in 2023 or (ii) August 1, 2023.
(10)Excludes 123,750 ordinary shares issuable under the LTIP, which will vest subject to performance based vesting conditions (and subject to further vesting conditions relating to Mr. Zekhout's tenure as Chief Financial Officer).

There are no arrangements for involving the employees in the capital of the Company, including any arrangement that involves the issue or grant of options or shares or securities of the Company, other than those described under Item 6. Directors, Senior Management and Employees—B. Compensation of Executive Officers and Directors—Nomad Foods Limited Amended and Restated Long Term 2015 Incentive Plan (“LTIP").
F. Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation
None.

Item 7.    Major Shareholders and Related Party Transactions
A.    Major Shareholders
The following table sets forth certain information regarding the beneficial ownership of our ordinary shares by each person known by us to be a beneficial owner of more than 5% of the ordinary shares. Currently we only have one class of listed shares issued and outstanding, that being ordinary shares, which have no par value. All of our ordinary shares have the same voting rights. Percentages are based on the 173,968,388174,240,609 ordinary shares that were issued and outstanding on March 13, 2018.February 20, 2023.
Ordinary Shares Beneficially
Owned
Name of Beneficial Owner:NumberPercentage
5% Shareholders:
Wellington Management Group LLP
c/o Wellington Management Company LLP
  280 Congress Street
  Boston, MA 02210		14,740,082 (1)8.5 
Noam Gottesman
c/o TOMS Acquisition I LLC
   450 W. 14th Street, 13th Floor
   New York, NY 10014		12,818,221 (2)7.4 
Martin E. Franklin
c/o Mariposa Capital, LLC
   500 South Pointe Drive, Suite 240
   Miami Beach, FL 33139		10,263,463 (3)5.9 
Allspring Global Investments Holdings, LLC
  420 Montgomery Street
  San Francisco, CA 94163
9,389,072 (4)5.4 
FMR LLC
  245 Summer Street
  Boston, MA 02210		12,739,712 (5)7.3 
AllianceBernstein L.P.
1345 Avenue of Americas,
New York, NY 10105		11,842,891 (6)6.8 
T. Rowe Price Investment Management, Inc.
101 E. Pratt Street
Baltimore, MD 21201		9,568,669 (7)5.5 
71

  
Ordinary Shares Beneficially
Owned
Name of Beneficial Owner: Number  Percentage
5% Shareholders:     
Boston Partners
One Beacon Street, 30th Floor
   Boston, MA 02108

 13,583,042
(1) 7.8
T. Rowe Price Associates Inc.
100 East Pratt Street
Baltimore, MD 21202
 10,174,660
(2) 5.8
TOMS Acquisition I, LLC
   450 W. 14th Street, 13th Floor
   New York, NY 10014
 10,044,153
(3) 5.8
Elliott Associates, L.P.
   40 West 57th Street, 30th Floor
   New York, NY 10019
 9,438,601
(4) 5.4


(1)(1)Based on a Schedule 13G filed by Boston Partners on February 13, 2018.
(2)Based on a Schedule 13G/A filed by T. Rowe Price Associates Inc. on February 14, 2018.
(3)Based on a Schedule 13D filed by TOMS Acquisition I LLC, Noam Gottesman and TOMS Capital Investments LLC on January 12, 2018.
(4)Based on a Schedule 13G filed by Elliott Associates L.P., Elliott International, L.P. and Elliott International Capital Advisors Inc., as a group, on September 18, 2017.
In addition, on September 12, 2017, Pershing Square Capital Management L.P., which as of March 28, 2017, beneficially owned 18.3% of our ordinary shares, filed a Schedule 13G/A to report that it no longer beneficially owned anyfiled by Wellington Management Group LLP on February 6, 2023.
(2)Consists of our(i) 2,023,560 ordinary shares (as a result of the transactions described under “Operating and Financial Review and Prospects -


Financings and Acquisitions”). On July 18, 2017, Birds Eye Iglo Limited Partnership Inc., which as of March 28, 2017, beneficially owned 7.6% of ourheld indirectly through TOMS Acquisition I LLC, (ii) 6,708,560 ordinary shares filedheld indirectly through TOMS Capital Investments LLC, (iii) 1,514,652 ordinary shares held indirectly through an entity wholly-owned by Mr. Gottesman and (iv) 1,821,449 ordinary shares held by certain members of TOMS Acquisition I LLC that are subject to an irrevocable proxy agreement granted to Mr. Gottesman and (v) 750,000 ordinary shares held by Lavender Fiduciary Management Inc., as a trustee of various trusts established by certain members of TOMS Acquisition I LLC, that are subject to an irrevocable proxy agreement granted to Mr. Gottesman. Mr. Gottesman is the managing member and majority owner of TOMS Acquisition I LLC and TOMS Capital Investments LLC and may be considered to have beneficial ownership of TOMS Acquisition I LLC’s and TOMS Capital Investments LLC’s interests in the Company. In addition, Mr. Gottesman owns or controls, directly or indirectly, 77.5% of TOMS Acquisition I LLC and 100% of TOMS Capital Investments LLC. Mr. Gottesman disclaims beneficial ownership of such shares to the extent of his pecuniary interest therein.
(3)Consists of (i) 6,722,212 ordinary shares held indirectly through the Martin E. Franklin Revocable Trust, and (ii) 3,541,251 ordinary shares held indirectly through RSMA, LLC. Sir Martin disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein.
(4)Based on a Schedule 13G/A to report that it no longer beneficially owned any of our ordinary shares (as a result of the transaction described under “Operating and Financial Review and Prospects - Financings and Acquisitions”). On February 9, 2018, Third Pointfiled by Allspring Global Investments Holdings, LLC which as of March 28, 2017, beneficially owned 5.8% of our ordinary shares, filedon January 13, 2023.
(5)Based on a Schedule 13G/A to report that it no longer beneficially owned any of our ordinary shares. Onfiled by FMR LLC on February 9, 2023.
(6)Based on a Schedule 13G filed by AllianceBernstein L.P. on February 14, 2018, Corvex2023.
(7)Based on a Schedule 13G filed by T. Rowe Price Investment Management, LPInc. on February 14, 2023.
On January 13, 2023, Allspring Global Investments Holdings, LLC filed a Schedule 13G/A to report that its percentage ownership in our ordinary shares decreased from 9.6%,5.61% as of March 31, 2017,January 18, 2022 to 4.9%. 5.45% as of January 13, 2023.
On January 10, 2017,February 6, 2023, Wellington Management Group LLP which, as of March 31, 2016, beneficially owned 13.9% of our ordinary shares, and as of September 12, 2016, beneficially owned 8.2% of our ordinary shares, filed a Schedule 13G/A to report that its percentage ownership in our ordinary shares increased from 7.98% as of February 4, 2022 to 8.55% as of February 6, 2023.
On February 9, 2023, FMR LLC filed a Schedule 13G/A to report that its percentage ownership in our ordinary shares increased from 5.17% as of February 9, 2022 to 7.39% as of February 9, 2023.
On February 14, 2023, AllianceBernstein L.P. filed a Schedule 13G to report that it no longer beneficially
owned any6.9% of our ordinary shares.
On February 7, 2017,14, 2023, T. Rowe Price AssociatesInvestment Management, Inc. filed a Schedule 13G to report that it beneficially owned 5.7%5.6% of our ordinary shares.
As of February 20, 2023, approximately 174,240,609 of our outstanding ordinary shares were held by one United States record holder (Cede and Company).
Except for the foregoing, no major shareholder has disclosed a significant change in its percentage ownership of our ordinary shares during the three years ended December 31, 2017.2022.


B.    Related Party Transactions
For a description of our related party transactions, see Note 37, Related Parties, to our audited consolidated financial statements which appear elsewhere in this annual report.
72

On January 1, 2022, the Company entered into an Amended and Restated Advisory Services Agreement with Mariposa Capital, LLC, an affiliate of Sir Martin, and TOMS Capital LLC, an affiliate of Mr. Gottesman. Pursuant to the terms of the Amended and Restated Advisory Services Agreement, Mariposa Capital, LLC and TOMS Capital LLC provide high-level strategic advice and guidance to the Company. Under the terms of the Amended and Restated Advisory Services Agreement, Mariposa Capital, LLC and TOMS Capital LLC are entitled to receive an aggregate annual fee equal to $4.0 million, payable in quarterly installments. This agreement expires on January 1st annually and will be automatically renewed for successive one-year terms unless any party notifies the other parties in writing of its intention not to renew the agreement no later than 90 days prior to the expiration of the term. The agreement may only be terminated by the Company upon a vote of a majority of its directors. In the event that the agreement is terminated by the Company, the effective date of the termination will be 6 months following the expiration of the initial term or a renewal term, as the case may be.
Related Party Transactions Procedures
The Audit Committee Charter provides that the Audit Committee shall review all related party transactions, as defined under Item 404 of Regulation S-K under the Securities Act of 1933, as amended. Following such review, the Audit Committee determines whether such transaction should be approved based on the terms of the transaction, the business purpose for the transaction and whether the transaction is in the best interest of the Company and its shareholders.
No member of the Audit Committee shall participate in any review, consideration or approval of any related party transaction with respect to which such member or any of his or her immediate family members is the related party.
Item 8.Financial Information
A.Consolidated Statements and Other Financial Information
Item 8.    Financial Information
A.    Consolidated Statements and Other Financial Information
Financial Statements
Please see Item 18 below.
Export Sales
For a description of our export sales which constitute all of our sales, please see Geographical information - External revenue by geography in Item 18, Note 5 below.
Legal Proceedings
We are not currently subject to any legal proceedings, nor to the best of our knowledge, is any proceeding threatened, the results of which would have a material impact on our properties, results of operation, or financial condition. Tax audits are taking place in a number of countries. Whenever there is a difference in view between local tax authorities and the Company, to the extent deemed necessary, provisions are made for exposures for which it will be probable that they will lead to additional tax liabilities. To the best of our knowledge, none of our officers or directors is involved in any legal proceedings in which we are an adverse party.
Dividend Policy
We have not declared or paid any dividends on our ordinary shares since our inception on April 1, 2014, and have no current plans to pay dividends on our ordinary shares. The declaration and payment of future dividends to holders of our ordinary shares will be at the discretion of our board of directors and will depend upon many factors, including our financial condition, earnings, legal requirements, restrictions in our debt agreements and other factors deemed relevant by our board of directors. In addition, as a holding company, our ability to pay dividends depends on our receipt of cash dividends from our operating subsidiaries, which may further restrict our ability to pay dividends as a result of the laws of their respective jurisdictions of organization, agreements of our subsidiaries or covenants under future indebtedness that we or they may incur. See Item 3D: Key Information—Information - Risk Factors—Factors - Risks Related to our Ordinary Shares—Shares - Dividend payments on our ordinary shares are not expected, and for a discussion of taxation of any dividends, see Item 10E: Additional Information—Information - Taxation.
73

The Founder Preferred Shares arewere entitled to receive an annual stock dividend based on the market price of our ordinary shares if such market price exceedsexceeded certain trading price minimums and to participate in any


dividends on the ordinary shares. On December 29, 2017, we approved a 2017 Founder Preferred Share Dividend in an aggregate of 8,705,890 ordinary shares. The dividend price used to calculate the 2017 Founder Preferred Shares Annual Dividend Amount was $16.6516 (calculated based upon the volume weighted average price for the last ten trading days of 2017) and the Ordinary Shares were issued on January 2, 2018. For the year ended December 31, 2016,2022 and the year ended December 31, 2021, no Founder Preferred Shares Annual Dividend Amount was payable pursuant to the terms of the Founder Preferred Shares. On January 12, 2016,For the year ended December 31, 2020, we had approved the 2015a 2020 Founder Preferred Share Dividend in an aggregate of 3,620,5103,875,036 ordinary shares. The dividend price used to calculate the 20152020 Founder Preferred Shares Annual Dividend Amount was $11.4824 (calculated based upon the volume weighted average price for the last ten trading days of 2015)$25.2127 and the Ordinary Shares were issued on January 12, 2016.  In subsequent years,2, 2020. On January 3, 2023, each of the Founder Preferred Shares Annual Dividend Amount will be calculated based upon the volume weighted average price for the last ten trading daysconverted into one ordinary share and, as of the year and the appreciated average share price compared to the highest price previously used in calculating thesuch date, no Founder Preferred Shares Annual Dividend Amount. We currently expect to retain all ourremained outstanding and no future earnings for use in the operation and expansion of our business and do not anticipate paying any cash dividends for the foreseeable future. The declaration and payment of future dividends to holders of our ordinary sharesdividend will be at the discretion of our board of directors and will depend upon many factors, including our financial condition, earnings, legal requirements, and restrictions in our debt agreements, including the Revolving Credit Facility, and other factors deemed relevant by our board of directors. As a holding company, our ability to pay dividends depends on our receipt of cash dividends from our operating subsidiaries, which may further restrict our ability to pay dividends as a result of the laws of their respective jurisdictions of organization, agreements of our subsidiaries or covenants under future indebtedness that we or they may incur. Furthermore, under British Virgin Islands law, we may pay dividends to our shareholders only if, immediately after the dividend, the value of our assets would exceed our liabilities and we would be able to pay our debts as they fall due.paid.
B.    Significant Changes
No significant change has occurred since the date of the annual financial statements included in this annual report.
Item 9.The Offer and Listing
A.Offer and Listing Details
Item 9.    The Offer and Listing
A.    Offer and Listing Details
Our ordinary shares are currently listed for trading on the NYSE under the symbol “NOMD”. Our ordinary shares began trading on the London Stock Exchange (the “LSE”) on April 15, 2014 and were traded on the LSE until April 20, 2015 when trading was halted through June 22, 2015 due to the announcement of the then-pending Iglo Acquisition. On January 12, 2016, the Company transferred its listing from the LSE to the NYSE. The following table sets forth the high and low reported sale prices of our ordinary shares as reported on the LSE and NYSE for the periods indicated:


Item 10.    Additional Information
A.    Share Capital
 High Low
Annual   
2017 (January 1, 2017 – December 31, 2017)$17.02
 $9.61
2016 (January 5, 2016 – December 31, 2016)$13.40
 $6.40
2015 (April 1, 2015 – December 31, 2015) (2)$23.11
 $10.28
2014 (April 15, 2014 – December 31, 2015)$11.75
 $9.75
    
Quarterly   
2017   
Fourth Quarter (October 1, 2017 – December 31, 2017)$17.02
 $14.32
Third Quarter (July 1, 2017 – September 30, 2017)$15.49
 $13.54
Second Quarter (April 1, 2017 – June 30, 2017)$14.72
 $10.77
First Quarter (January 1, 2017 – March 31, 2017)$12.00
 $9.61
2016   
Fourth Quarter (October 1, 2016 – December 31, 2016)$12.97
 $9.00
Third Quarter (July 1, 2016 – September 30, 2016)$12.39
 $7.95
Second Quarter (April 1, 2016 – June 30, 2016)$10.43
 $7.85
First Quarter (January 5, 2016 – March 31, 2016) (1)$13.40
 $6.40
2015   
Third Quarter (October 1, 2015 – December 31, 2015)$17.40
 $11.00
Second Quarter (July 1, 2015 – September 30, 2015)$23.11
 $15.50
First Quarter (April 1, 2015 – June 30, 2015) (2)$22.10
 $10.28
    
Most Recent Six Months   
2018   
March (through March 20, 2018)$16.93
 $15.96
February$17.20
 $15.27
January$17.32
 $16.00
2017
 
December$17.02
 $16.18
November$16.90
 $14.33
October$15.32
 $14.49
September$15.49
 $14.00
(1)Issued trading on our ordinary shares began on the NYSE on January 5, 2016.
(2)Trading in our ordinary shares was suspended on the LSE from April 20, 2015 through June 22, 2015 due to the announcement of the then-pending Iglo Acquisition.
As of March 13, 2018, approximately 146,811,989 ordinary shares, representing approximately 84.4% of our outstanding ordinary shares, were held by approximately 10,035 United States record holders and all of our preferred shares were held by 2 United States record holders.
There is no public market for our preferred shares and the preferred shares will not be listed for trading on any exchange.
Item 10.Additional Information
A.Share Capital
Not applicable.

B.    Memorandum and Articles of Association

B.Memorandum and Articles of Association
A copy of our Memorandum and Articles of Association have been previously filed as Exhibit 99.1 to our Report of Foreign Private Issuer on Form 6-K (File No. 001-37669), filed with the SEC on January 14, 2016, and is incorporated by reference into this annual report. TheA description of securities registered under Section 12 of the Exchange Act is filed as Exhibit 2.3 to this annual report on Form 20-F and includes a summary of the additional information called forrequired by this Item 10B: Additional Information—10B and is incorporated by reference herein. Such summary does not purport to be complete and is subject to and qualified in its entirety by reference to our Memorandum and Articles of Association, has been reported previously in our Registration Statement on Form F-1 (File No. 333-209572), filed withas amended, and to the SEC on February 17, 2016 (the “Registration Statement”), under the heading “Description of Share Capital,”relevant laws and is incorporated by reference into this annual report.regulations. There are no limitations on the rights to own securities, including the rights of non-resident or foreign shareholders to hold or exercise voting rights on the securities imposed by the laws of the British Virgin Islands or by our Memorandum.
C.Material Contracts
C.    Material Contracts
Each material contract to which the Company has been a party for the preceding two years, other than those entered into in the ordinary course of business, is listed as an exhibit to the Registration Statement and is summarized elsewhere herein.
D.Exchange Controls
D.    Exchange Controls
We are not aware of any governmental laws, decrees, regulations or other legislation in the British Virgin Islands that restrict the export or import of capital, including the availability of cash and cash equivalents for use by our affiliated companies, or that affect the remittance of dividends, interest or other payments to non-resident holders of our securities.
E.Taxation
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E.    Taxation
U.S. Federal Income Taxation
General
The following discussion is a summary of certain U.S. federal income tax issues relevant to the acquisition, holding and disposition of the ordinary shares. Additional tax issues may exist that are not addressed in this discussion and that could affect the U.S. federal income tax treatment of the acquisition, holding and disposition of the ordinary shares.
This discussion does not address any tax consequences other than U.S. federal income tax consequences, such as U.S. state and local tax consequences, U.S. estate and gift tax consequences, or non-U.S. income tax consequences. The discussion applies, unless indicated otherwise, only to holders of ordinary shares who acquire the ordinary shares as capital assets. It does not address special classes of holders that may be subject to different treatment under the Internal Revenue Code of 1986, as amended (the “Code”), such as:
•certain financial institutions;institutions, insurance companies, underwriters, real estate investment trusts, or regulated investment companies;
insurance•controlled foreign corporations or passive foreign investment companies;
•dealers and traders in securities;
•persons holding ordinary shares as part of a hedge, straddle, conversion or other integrated transaction;
•partnerships or other entities or arrangements classified as partnerships for U.S. federal income tax purposes;
•persons liable for the alternative minimum tax;
•tax-exempt organizations;organizations, qualified retirement plans, individual retirement accounts, or other tax-deferred accounts;
•certain U.S. expatriates;expatriates or former long-term residents of the United States;
•a person that is required to accelerate the recognition of any item of gross income with respect to ordinary shares as a result of such income being recognized on an applicable financial statement;
•a person that acquired ordinary shares as compensation for services;
•persons holding ordinary shares that own or are deemed to own 10 percent or more (by vote or value) of the Company’s voting stock; or
non-U.S. Holders•persons that do not use the U.S. Dollar as their functional currency.
This section is based on the Code, its legislative history, existing and proposed Treasury regulations, published rulings by the Internal Revenue Service (“IRS”) and court decisions, all as currently in effect. These laws are subject to change, possibly on a retroactive basis. Holders of ordinary shares should consult their own tax advisers concerning the U.S. federal, state, local and non-U.S. tax consequences of acquiring, holding and disposing of ordinary shares in their particular circumstances.



As used herein, a “U.S. Holder” is a beneficial owner of ordinary shares that is, for U.S. federal income tax purposes: (i) an individual who is a citizen or resident of the United States; (ii) a corporation or other entity taxable as a corporation, created or organized in or under the laws of the United States or any political subdivision thereof; (iii) an estate the income of which is subject to U.S. federal income taxation regardless of its source; or (iv) a trust if (1) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more “United States persons” (within the meaning of the Code) have the authority to control all substantial decisions of the trust, or (2) it has a valid election in effect under applicable Treasury regulations to be treated as a “United States person”.
This discussion does not consider the tax treatment of partnerships or other pass-through entities that hold ordinary shares, or of persons who hold ordinary shares through such entities. If a partnership (or other entity or arrangement classified as a partnership for U.S. federal income tax purposes) is the beneficial owner of
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ordinary shares, the U.S. federal income tax treatment of a partner in the partnership will generally depend on the status of the partner and the activities of the partnership.
This discussion is based upon certain understandings and assumptions with respect to the business, assets and shareholders, including that the Company is not, does not expect to become, nor at any time has been, a controlled foreign corporation as defined in Section 957 of the Code (a “CFC”). The Company believes that it is not and has never been a CFC, and does not expect to become a CFC. In the event that one or more of such understandings and assumptions proves to be inaccurate, the following discussion may not apply, and material adverse U.S. federal income tax consequences may result to U.S. Holders.
Passive Foreign Investment Company (“PFIC”) Considerations
The U.S. federal income tax treatment of U.S. Holders will differ depending on whether or not the Company is considered a passive foreign investment company (“PFIC”) for U.S. federal income tax purposes.
In general, the Company will be considered a PFIC for any taxable year in which: (i) 75 percent or more of its gross income consists of passive income; or (ii) 50 percent or more of the average quarterly market value of its assets in that year are assets (including cash) that produce, or are held for the production of, passive income. For purposes of the above calculations, if the Company, directly or indirectly, owns at least 25 percent by value of the stock of another corporation, then the Company generally would be treated as if it held its proportionate share of the assets of such other corporation and received directly its proportionate share of the income of such other corporation. Passive income generally includes, among other things, dividends, interest, rents, royalties, certain gains from the sale of stock and securities, and certain other investment income.
TheBased on the current and anticipated composition of the income, assets and operations of the Company and its subsidiaries, the Company believes that it iswill not be a PFIC in theits current taxable year and is not likely to be a PFIC in future taxable years. However, there is no assurance that the Company will not be a PFIC in future years.any taxable year because PFIC status is factual in nature, depends upon factors not wholly within the Company's control, generally cannot be determined until the close of the taxable year in question, and is determined annually. If the Company is a PFIC for any taxable year during which a U.S. Holder holds (or, in the case of a lower-tier PFIC, is deemed to hold) its ordinary shares, such U.S. Holder will be subject to significant adverse U.S. federal income tax rules. U.S. Holders should consult their tax advisors on the U.S. federal income tax consequences of the Company being treated as a PFIC.
Tax Consequences for U.S. Holders if the Company is not a PFIC
Dividends
In general, subject to the PFIC rules discussed above, a distribution on an ordinary share will constitute a dividend for U.S. federal income tax purposes to the extent that it is made from the Company’s current or accumulated earnings and profits as determined under U.S. federal income tax principles. If a distribution exceeds the Company’s current and accumulated earnings and profits, it will be treated as a non-taxable reduction of basis to the extent of the U.S. Holder’s tax basis in the ordinary share on which it is paid, and to the extent it exceeds that basis it will be treated as capital gain. For purposes of this discussion, the term “dividend” means a distribution that constitutes a dividend for U.S. federal income tax purposes. However, it is not expected that the Company will maintain calculations of its earnings and profits in accordance with U.S. federal income tax principles. U.S. Holders should therefore assume that any distribution by the Company with respect to the Company’s ordinary shares will be reported as dividend income. U.S. Holders should consult their own tax advisors with respect to the appropriate U.S. federal income tax treatment of any distribution received from the Company.
The gross amount of any dividend on an ordinary share (which will include the amount of any foreign taxes withheld) generally will be subject to U.S. federal income tax as foreign source dividend income, and generally will not be eligible for the corporate dividends received deduction.deduction allowed to corporations in respect of dividends received from U.S. corporations. The amount of a dividend paid in foreign currency will be its value in U.S. Dollars based on the prevailing spot market exchange rate in effect on the day the U.S. Holder receives the dividend. A U.S. Holder will have a tax basis in any distributed foreign currency equal to its U.S. Dollar amount on the date of receipt, and any gain or loss realized on a subsequent conversion or other disposition of foreign currency generally will be treated as U.S. source ordinary income or loss. If dividends paid in foreign currency are converted into U.S. Dollars on the date they are received by a U.S. Holder, the U.S. Holder generally should not be required to recognize foreign currency gain or loss in respect of the dividend income.
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Subject to certain exceptions for short-term and hedged positions, a dividend that a non-corporate holder receives on an ordinary share will be subject to a maximum federal income tax rate of 20 percent if the dividend is a “qualified dividend” not including the Net Investment IncomeMedicare Contribution Tax described below. A dividend on an ordinary share will


be a qualified dividend if (i) either (a) the ordinary shares are readily tradable on an established market in the United States or (b) the Company is eligible for the benefits of a comprehensive income tax treaty with the United States that the Secretary of the Treasury determines is satisfactory for purposes of these rules and that includes an exchange of information program, and (ii) the Company was not, in the year prior to the year the dividend was paid, and is not, in the year the dividend is paid, a PFIC. Since the ordinary shares are listed on the New York Stock Exchange, the ordinary shares should be treated as readily tradable on an established securities market in the United States. Even if dividends on the ordinary shares would otherwise be eligible for qualified dividend treatment, in order to qualify for the reduced qualified dividend tax rates, a non-corporate holder must hold the ordinary share on which a dividend is paid for more than 60 days during the 120-day period beginning 60 days before the ex-dividend date, disregarding for this purpose any period during which the non-corporate holder has an option to sell, is under a contractual obligation to sell or has made (and not closed) a short sale of substantially identical stock or securities, is the grantor of an option to buy substantially identical stock or securities or, pursuant to Treasury regulations, has diminished its risk of loss by holding one or more other positions with respect to substantially similar or related property. In addition, to qualify for the reduced qualified dividend tax rates, the non-corporate holder must not be obligated to make related payments with respect to positions in substantially similar or related property. Payments in lieu of dividends from short sales or other similar transactions will not qualify for the reduced qualified dividend tax rates.
A non-corporate holder that receives an extraordinary dividend eligible for the reduced qualified dividend rates must treat any loss on the sale of the stock as a long-term capital loss to the extent of the dividend. For purposes of determining the amount of a non-corporate holder’s deductible investment interest expense, a dividend is treated as investment income only if the non-corporate holder elects to treat the dividend as not eligible for the reduced qualified dividend tax rates. Special limitations on foreign tax credits with respect to dividends subject to the reduced qualified dividend tax rates apply to reflect the reduced rates of tax.
The U.S. Treasury has announced its intention to promulgate rules pursuant to which non-corporate holders of stock of non-U.S. corporations, and intermediaries through whom the stock is held, will be permitted to rely on certifications from issuers to establish that dividends are treated as qualified dividends. Because those procedures have not yet been issued, it is not clear whether the Company will be able to comply with them.
Non-corporate holders of ordinary shares are urged to consult their own tax advisers regarding the availability of the reduced qualified dividend tax rates with respect to dividends received on the ordinary shares in light of their own particular circumstances.
Capital Gains
Subject to the PFIC rules discussed above, on a sale or other taxable disposition of an ordinary share, a U.S. Holder will recognize capital gain or loss in an amount equal to the difference between the U.S. Holder’s adjusted basis in the ordinary share and the amount realized on the sale or other disposition, each determined in U.S. Dollars. Such capital gain or loss will be long-term capital gain or loss if at the time of the sale or other taxable disposition the ordinary share has been held for more than one year. In general, any adjusted net capital gain of an individual is subject to a maximum federal income tax rate of 20 percent, plusnot including the Medicare Contribution Tax, of 3.8%, discussed below. Capital gains recognized by corporate U.S. holders generally are subject to U.S. federal income tax at the same rate as ordinary income. The deductibility of capital losses is subject to limitations.
Any gain a U.S. Holder recognizes generally will be U.S. source income for U.S. foreign tax credit purposes, and, subject to certain exceptions, any loss will generally be a U.S. source loss. If a non-U.S. income tax is paid on a sale or other disposition of an ordinary share, the amount realized will include the gross amount of the proceeds of that sale or disposition before deduction of the non-U.S. tax. The generally applicable limitations under U.S. federal income tax law on crediting foreign income taxes may preclude a U.S. Holder from obtaining a foreign tax credit for any non-U.S. tax paid on a sale or other disposition of an ordinary share. The rules relating to the determination of the foreign tax credit are complex, and U.S. holders are urged to consult with their own tax advisers regarding the application of such rules. Alternatively, any non-U.S. income tax paid on the sale or other disposition of an ordinary share may be taken as a deduction against taxable income, provided the U.S. Holder takes a deduction and not a credit for all foreign income taxes paid or accrued in the same taxable year.
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Medicare Contribution Tax
Dividends received with respect to ordinary shares and capital gains from the sale or other taxable disposition of the ordinary shares recognized by certain non-corporate U.S. Holders with respect to ordinary shares will be includable in computing net investment income of such U.S. Holder for purposes of the 3.8 percent Medicare Contribution Tax.


Tax Consequences for Non-U.S. Holders of Ordinary Shares
As used herein, a "non-U.S. Holder" is a beneficial owner of ordinary shares that is neither a U.S. Holder nor a partnership (or entity or arrangement classified as a partnership) for U.S. federal income tax purposes.
Dividends
A non-U.S. Holder generally will not be subject to U.S. federal income tax or withholding on dividends received from the Company with respect to ordinary shares, other than in certain specific circumstances where such income is deemed effectively connected with the conduct by the non-U.S. Holder of a trade or business in the United States. If a non-U.S. Holder is entitled to the benefits of a U.S. income tax treaty with respect to those dividends, that income is generally subject to U.S. federal income tax only if it is attributable to a permanent establishment maintained by the non-U.S. Holder in the United States. A non-U.S. Holder that is subject to U.S. federal income tax on dividend income under the foregoing exception generally will be taxed with respect to such dividend income on a net basis in the same manner as a U.S. Holder unless otherwise provided in an applicable income tax treaty; a non-U.S. Holder that is a corporation for U.S. federal income tax purposes may also be subject to a branch profits tax with respect to such itemdividend income at a rate of 30 percent (or at a reduced rate under an applicable income tax treaty).
Sale, Exchange or Other Taxable Disposition of Ordinary Shares
A non-U.S. Holder generally will not be subject to U.S. federal income tax or withholding with respect to any gain recognized on a sale, exchange or other taxable disposition of ordinary shares unless:
Certain circumstances exist under which •the gain is treated as effectively connected with the conduct by the non-U.S. Holder of a trade or business in the United States and,(and, if certainan applicable income tax treaties apply,treaty so requires, such gain is attributable to a permanent establishment maintained by the non-U.S. Holder in the United States;States); or
•the non-U.S. Holder is an individual and is present in the United States for 183 or more days in the taxable year of the sale, exchange or other taxable disposition, and meets certain other requirements.
If the first exception applies, the non-U.S. Holder generally will be subject to U.S. federal income tax with respect to such itemgain on a net basis in the same manner as a U.S. Holder unless otherwise provided in an applicable income tax treaty; a non-U.S. Holder that is a corporation for U.S. federal income tax purposes may also be subject to a branch profits tax with respect to such itemgain at a rate of 30 percent (or at a reduced rate under an applicable income tax treaty). If the second exception applies, the non-U.S. Holder generally will be subject to U.S. federal income tax at a rate of 30 percent (or at a reduced rate under an applicable income tax treaty) on the amount by which such non-U.S. Holder’s capital gains allocable to U.S. sources exceed capital losses allocable to U.S. sources during the taxable year of disposition of the ordinary shares.
Tax Consequences for Holders of Preferred Shares
Generally, the U.S. federal income tax consequences of holding preferred shares is the same as the U.S. federal income tax consequences of holding ordinary shares, as discussed above. Holders of preferred shares may be eligible for a distribution of ordinary shares as a dividend with respect to the holding of preferred shares. The distribution of a stock dividend may under certain circumstances be received free of U.S. federal income taxes. In that case, the adjusted tax basis of the ordinary shares distributed will be determined based on an allocation of the basis of the preferred shares in accordance with the fair market value of the preferred shares and the ordinary shares distributed. Holders of preferred shares are urged to consult their own tax advisers about the U.S. federal, state and local Tax consequences of receiving a stock dividend.
Information Reporting and Backup Withholding
Under U.S. federal income tax laws, certain categories of U.S. Holders must file information returns with respect to their investment in, or involvement in, a foreign corporation (including IRS Forms 926). Persons who are required to file these information returns and fail to do so may be subject to substantial penalties. Pursuant to Section 1298(f) of the Code, for any year in which the Company is a PFIC, each U.S. Holder will be required to file an information statement, Form 8621, regarding such U.S. Holder’s ownership interest in the Company. U.S. Holders of ordinary shares should consult with their own tax advisers regarding the requirements of filing information returns.
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Furthermore, certain U.S. Holders who are individuals and to the extent provided in future regulations, certain entities, will be required to report information with respect to such U.S. Holder’s investment in “foreign financial assets” on IRS Form 8938. An interest in the Company constitutes a foreign financial asset for these purposes. Persons who are required to report foreign financial assets and fail to do so may be subject to substantial penalties.


Potential shareholders are urged to consult with their own tax advisers regarding the foreign financial asset reporting obligations and their application to an investment in ordinary shares.
Payments of dividends and sales proceeds that are made within the United States or through certain U.S.-related financial intermediaries generally are subject to information reporting and to backup withholding unless the U.S. Holder is a corporation or other exempt recipient, or, in the case of backup withholding, the U.S. Holder provides a correct taxpayer identification number and certifies that no loss of exemption from backup withholding has occurred. The amount of any backup withholding from a payment to a U.S. Holder will be allowed as a credit against the U.S. Holder’s U.S. federal income tax liability and may entitle such U.S. Holder to a refund, provided that the required information is furnished to the IRS.
The Foreign Account Tax Compliance Act (“FATCA”) imposes withholding at a 30 percent rate on payments of interest and dividends and gross proceeds from the disposition of any asset that produces interest or dividends, if such payment is sourced in the United States, to (i) a foreign financial institution unless such foreign financial institution agrees to verify, report and disclose its U.S. accountholders and meet certain other specified requirements or (ii) a non-financial foreign entity that is treated as the beneficial owner of the payment unless such entity certifies that an exception applies or that it does not have any substantial U.S. owners (generally owners of more than 10 percent of the interests in the entity) or provides the name, address and taxpayer identification number of each substantial U.S. owner and such entity meets certain other specified requirements. Under FATCA, beginning in 2019, a new U.S. federal income tax withholding regime applies to “pass-through payments” made to certain non-U.S. persons. Broadly, pass-through payments include two categories of payments; payments of U.S. source interest, dividends and other specified types of fixed or determinable annual or periodic gains and profits and payments by non-U.S. entities to the extent deemed attributable to U.S. assets. In addition, gross proceeds from the sale of property that can give rise to U.S. source interest and dividends are also subject to withholding as a pass-through payment. If the Company has income sourced in the United States, it will be required to comply with FATCA to avoid withholding taxes.
Non-U.S. Holders generally are not subject to information reporting or backup withholding with respect to dividends paid on ordinary shares, or the proceeds from the sale, exchange or other disposition of ordinary shares, provided that each such non-U.S. Holder certifies as to its foreign status on the applicable duly executed IRS Form W-8 or otherwise establishes an exemption.
Foreign Account Tax Compliance Act
Under certain circumstances, the Company or its paying agent may be required, pursuant to the Foreign Account Tax Compliance Act ("FATCA"), to withhold U.S. tax at a 30 percent rate on all or a portion of payments of dividends or other corporate distributions to holders of ordinary shares that are treated as "foreign pass-thru payments" made on or after the date that is two years after the issuance of final regulations concerning such foreign pass-thru payments are published, if such payments are not in compliance with FATCA. Such regulations have not yet been issued. The rules regarding FATCA and "foreign pass-thru payments," including the treatment of proceeds from the disposition of ordinary shares, are complex and holders of ordinary shares are encouraged to consult their own tax advisers regarding the impact of the FATCA rules on them.
This summary is for general information only and it is not intended to be, nor should it be construed to be, tax or legal advice to any prospective shareholder. Further, this summary is not intended to constitute a complete analysis of all U.S. federal income tax consequences relating to holders of their acquisition, ownership and disposition of the ordinary shares. Accordingly, prospective holders of ordinary shares should consult their own tax advisers about the U.S. federal, state, local and non-U.S. tax consequences of the acquisition, ownership and disposition of the ordinary shares.
British Virgin Islands Taxation
The Company
We are not subject to any income, withholding or capital gains taxes in the British Virgin Islands. No capital or stamp duties are levied in the British Virgin Islands on the issue, transfer or redemption of ordinary shares.
Shareholders
Shareholders who are not tax resident in the British Virgin Islands will not be subject to any income, withholding or capital gains taxes in the British Virgin Islands, with respect to the ordinary shares of the Company owned by them and dividends received on such ordinary shares, nor will they be subject to any estate or inheritance taxes in the British Virgin Islands.

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United Kingdom Taxation
General
The following is a general summary of material UK tax considerations relating to the ownership and disposal of our ordinary shares. The comments set out below are based on current United KingdomUK tax law as of the date of this summary, which is subject to change, possibly with retrospective effect. This summary does not constitute legal or tax advice and applies only to shareholders holding our ordinary shares as an investment and who are the beneficial owners thereof, whose ordinary shares are not held through an individual savings account or a self-invested personal pension and who have not acquired their or another person’s ordinary shares by reason of their or another person’s employment. These comments may not apply to certain classes of persons, including dealers in securities, insurance companies and collective investment schemes.
This summary is for general information only and is not intended to be, nor should it be considered to be, legal or tax advice to any particular investor. It does not address all of the tax considerations that may be relevant to specific investors in light of their particular circumstances or to investors subject to special treatment under UK tax law. Potential investors should consult their own tax advisers concerning the overall tax consequences of acquiring, holding and disposing of our ordinary shares in their particular circumstances.
The Company
As previously stated, on January 12, 2016, we became centrally managed and controlled in the United KingdomUK and therefore became resident in the United KingdomUK for UK taxation purposes.
Accordingly, since that date, we are subject to UK taxation on our income and gains, except where an exemption applies. Dividend income will generally be exempt from UK corporation tax on income if certain conditions are met.
We may be treated as a dual resident company for UK tax purposes. As a result, our right to claim certain reliefs from UK tax may be restricted, and changes in law or practice in the United KingdomUK could result in the imposition of further restrictions on our right to claim UK tax reliefs.
Shareholders
Sale, Exchange or Other Taxable Disposition of Ordinary Shares
Subject to their individual circumstances, shareholders who are resident in the United KingdomUK for UK taxation purposes will potentially be liable to UK taxation, as further explained below, on any gains which accrue to them on a sale or other disposition of their ordinary shares which constitutes a “disposal” for UK taxation purposes.
A shareholder who is not resident in the United KingdomUK for UK tax purposes will not generally be subject to UK tax on chargeable gains on a disposal of ordinary shares unless such a shareholder carries on a trade, profession or vocation in the United KingdomUK through a branch or agency or, in the case of a corporate shareholder, a permanent establishment. For shareholders in such circumstances, a gain on a disposal of our ordinary shares may be subject to UK taxation.
An individual shareholder who acquires ordinary shares while UK resident, who temporarily ceases to be UK resident or becomes resident in a territory outside the United KingdomUK for the purposes of double taxation relief arrangements, and who disposes of our ordinary shares during that period of temporary non-UK residence, may on his or her return to the United KingdomUK be liable to UK capital gains tax on any chargeable gain realized on that disposal.
For an individual shareholder within the charge to capital gains tax, a disposal of ordinary shares may give rise to a chargeable gain or allowable loss for the purposes of UK capital gains tax. The rate of capital gains tax is 18%generally 10% for individuals who are subject to income tax at the basic rate and 28%20% to the extent that an individual shareholder’s chargeable gains, when aggregated with his or her income chargeable to income tax, exceeds the basic rate band for income tax purposes. However, an individual shareholder is entitled to realize £11,100£12,300 of gains (the annual exempt amount) in eachthe UK tax year ended April 5, 2023, without being liable to tax.

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For a shareholder within the charge to UK corporation tax, a disposal (or deemed disposal) of ordinary shares may give rise to a chargeable gain or allowable loss for the purposes of UK corporation tax. Corporation tax is charged on chargeable gains at the rate applicable to that company, subject to any available exemption or relief. Indexation allowance may reduce the amount of chargeable gain that is subject to corporation tax (but may not give rise to or increase an allowable loss). No indexation allowance is available in respect of any period of ownership falling after December 2017.
Dividends on Ordinary Shares
No UK tax will be withheld or deducted at source from dividends paid by us on our ordinary shares.
Shareholders who are resident in the United KingdomUK for tax purposes may, subject to their individual circumstances, be liable to UK income tax or, as the case may be, UK corporation tax on dividends paid to them by us.
An individual shareholder who is within the charge to UKA nil rate of income tax and who receives a cashapplies to the first £2,000 of dividend from us may be entitled to a tax credit equal to one-ninth of the amount of the cash dividendincome received which tax credit will be equivalent to 10% of the aggregate of the dividend received and the tax credit (the gross dividend). Suchby an individual shareholder will be subject to income tax on the gross dividend.
An individual shareholder who is subject to UK income tax at a rate or rates not exceeding the basic rate will be liable to tax on the gross dividend at the rate of 10%, so that the tax credit will satisfy the income tax liability of such a shareholder in full. Where the tax credit exceeds the shareholder’s tax liability, the shareholder cannot claim repayment of the tax credit from H.M. Revenue and Customs.
An individual shareholder who is subject to UK income tax at the higher rate will be liable to income tax on the gross dividend at the rate of 32.5% to the extent that such sum, when treated as the top slice of that shareholder’s income, exceeds the threshold for higher rate income tax. After setting the 10% tax credit against part of the shareholder’s liability, a higher rate tax payer will therefore be liable to account for tax equal to 22.5% of the gross dividend (or 25% of the net cash dividend), to the extent that the gross dividend exceeds the threshold for the higher rate.
An individual shareholder who is subject to UK income tax at the additional rate will be liable to income tax on the gross dividend at the rate of 37.5% of the gross dividend, but will be able to set the UK tax credit off against part of this liability. The effect of this set-off of the UK tax credit is that such a shareholder will be liable to account for additional tax equal to 27.5% of the gross dividend (or approximately 30.6% of the net cash dividend) to the extent that the gross dividend exceeds the threshold for the additional rate.
With effect fromyear ended April 6, 2016, shareholders will no longer be entitled to the tax credit referred to above in respect of dividends paid on or after that date. Instead, the UK Government has introduced an annual dividend tax allowance of £5,000 per tax year.5, 2023. If and to the extent that an individual shareholder who is subject to UK income tax receives dividends in eachthe tax year which, in aggregate, do not exceed that allowance, the individual will not be liable to UK income tax on those dividends. If and to the extent that an individual shareholder who is subject to UK income tax receives dividends in eachthe tax year which, in aggregate, exceed that allowance, the individual will be subject to UK income tax on those dividends at the rate of 7.5%8.75% (in the case of basic rate taxpayers), 32.5%33.75% (in the case of higher rate taxpayers) and 38.1%39.35% (in the case of additional rate taxpayers), and the individual will not be entitled to any tax credit in respect of those dividends. In calculating into which income tax band any dividend income in excess of the above nil rate allowance falls, savings and dividend income are treated as the highest part of an individual's income.
Shareholders who are within the charge to UK corporation tax are generally likely to be exempt from corporation tax on dividends they receive from us, provided the dividends fall within an exempt class and certain conditions are met.
Stamp duty/stamp duty reserve tax
(i) Issue of Ordinary Shares
No UK stamp duty or stamp duty reserve tax will be payable on the issue of ordinary shares, subject to the comments in (iii) below.


shares.
(ii) Transfers of Ordinary Shares
UK stamp duty will in principle be payable on any instrument of transfer of our ordinary shares that is executed in the United KingdomUK or that relates to any property situated, or to any matter or thing done or to be done, in the United Kingdom.UK. An exemption from stamp duty is available on an instrument transferring ordinary shares where the amount or value of the consideration is £1,000 or less and it is certified on the instrument that the transaction effected by the instrument does not form part of a larger transaction or series of transactions in respect of which the aggregate amount or value of the consideration exceeds £1,000. Shareholders should be aware that, even where an instrument of transfer is in principle subject to stamp duty, stamp duty is not required to be paid unless it is necessary to rely on the instrument for legal purposes, for example to register a change of ownership or in litigation in a UK court. An instrument of transfer need not be stamped in order for the British Virgin Islands register of ordinary shares to be updated, and the register is conclusive proof of legal ownership.
Provided that the ordinary shares are not registered in any register maintained in the United KingdomUK by or on behalf of us and are not paired with any shares issued by a UK incorporated company, any agreement to transfer ordinary shares will not be subject to UK stamp duty reserve tax.
We currently do not intend that any register of our ordinary shares will be maintained in the United Kingdom.UK.
(iii) Ordinary Shares held through clearance services or depositary receipt arrangements
Where ordinary shares are transferred or issued to, or to a nominee or agent for, a person whose business is or includes the provision of clearance services or issuing depositary receipts (but not including CREST), UK stamp duty or stamp duty reserve tax may be payable at a rate of 1.5% (rounded up if necessary, in the case of stamp duty, to the nearest multiple of £5) of the amount or value of the consideration payable for (or, in certain circumstances, the value of) the ordinary shares. This liability for stamp duty or stamp duty reserve tax will be payable by the clearance service or depositary receipt operator or its nominee, as the case may be, but in practice participants in the clearance service or depositary receipt scheme will generally be required to reimburse them for such cost.
Following litigation, H.M. RevenueF.    Dividends and Customs has confirmed that it will no longer seek to apply the above 1.5% stamp duty or stamp duty reserve tax charge on the issue of shares into a clearance service or depositary receipt system established in a European Union Member State on the basis that the charge is not compatible with EU law. However, their view is that the 1.5% charge will still apply on the transfer of shares into such a clearance service or depositary receipts system where the transfer is not an integral part of the issue of share capital. This view is currentlyPaying Agents
being challenged in further litigation. Accordingly, shareholders should consult their own independent professional advisers before incurring or reimbursing the costs of such a 1.5% stamp duty or stamp duty reserve tax charge.
F.Dividends and Paying Agents
Not applicable.
G.Statements by Experts
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G.    Statements by Experts
Not applicable.
H.Documents on Display
H.    Documents on Display
Documents concerning us that are referred to herein may be inspected at our principal executive offices at: No. 1 New Square, Bedfont Lakes Business Park, Feltham, Middlesex, TW14 8HA. Those documents, which include our registration statements, periodic reports and other documents which were filed with the SEC, may be obtained electronically from the Investor section of our website at www.nomadfoods.com or from the SEC’s website at www.sec.gov or from the SEC public reference room at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. Further information on the operation of the public reference rooms may be obtained by calling the SEC at 1-202-551-8909. Copies of documents can also be requested from the SEC public reference rooms for a copying fee at prescribed rates.www.sec.gov. We do not incorporate the information contained on, or accessible through, our website into this annual report, and you should not consider it a part of this annual report.
I.Subsidiary Information
I.    Subsidiary Information
Not applicable.


Item 11.    Quantitative and Qualitative Disclosures About Market Risk
Item 11.Quantitative and Qualitative Disclosures About Market Risk
We are exposed to certain market risks during the normal course of our business, such as risk arising from fluctuations in foreign currency exchange rates, as well as fluctuations in interest rates. In attempts to manage these risks, we employ certain strategies to mitigate the effect of these fluctuations. For a detailed discussion of the these risks, see Note 33 “Financial risk management” to our audited consolidated financial statements which appear elsewhere in this annual report.
Item 12.Description of Securities Other than Equity Securities
Item 12.    Description of Securities Other than Equity Securities
Not applicable.
Item 13.Defaults, Dividend Arrearages and Delinquencies
Item 13.    Defaults, Dividend Arrearages and Delinquencies
None.
Item 14.Material Modifications to the Rights of Security Holders and Use of Proceeds
Item 14.    Material Modifications to the Rights of Security Holders and Use of Proceeds
None.
Use of Proceeds
None.
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Item 15.Controls and Procedures

Item 15.    Controls and Procedures
Disclosure Controls and Procedures
We carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Interim Chief Financial Officer, our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules l3a-15(e)13a-15(e) and l5d—15d - 15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of the end of the period covered by this report. Based upon that evaluation, the PrincipalChief Executive Officer and PrincipalChief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this annual report in providing a reasonable level of assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods in Securities and Exchange commissionSEC rules and forms, including providing a reasonable level of assurance that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our PrincipalChief Executive Officer and our PrincipalChief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Changes in internal control over financial reporting
During the period covered by this report, there have been no changes to our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Management’s annual report on internal control over financial reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended.Act. The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company’s assets, (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of the Company’s management and directors, and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the consolidated financial statements.


Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management has assessed the effectiveness of our internal control over financial reporting as of December 31, 20172022 using criteria described in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Based on this assessment, management concluded that the internal control over financial reporting was effective as of December 31, 20172022 based on the criteria established in this Internal Control-Integrated Framework (2013).
Attestation report of the independent registered public accounting firm
The independent registered public accounting firm that audited the Consolidated Financial Statements, PricewaterhouseCoopers LLP, has issued an attestation report on the effectiveness of the Company’sCompany's internal control over financial reporting as of December 31, 2017, appearing under 2022 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein.
Item 18, and such report is incorporated herein by reference.16A.    Audit Committee Financial Expert
Item 16A.Audit Committee Financial Expert
The board of directors has determined that Mr. Lillie qualifies as an audit committee financial expert as defined in Item 16A of Form 20-F, and that he is also “independent,” as defined in Rule 10A-3 under the Exchange Act and applicable NYSE standards. For more information about Mr. Lillie, see Item 6A: Directors, Senior Management and Employees—DirectorsEmployees - Executive Officers and Senior Management.Directors.
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Item 16B.

Item 16B.    Code of Ethics

We have adopted a Code of Ethics that applies to our Chief Executive Officer and all senior financial officers. We will provide to any person without charge, upon request, a copy of the Code of Ethics. You may obtain a copy of theThe Code of Ethics by sending a written requestis located on our Internet website at www.nomadfoods.com under "Investor Relations - Corporate Governance".
We intend to No. 1 New Square, Bedfont Lakes Business Park, Feltham, Middlesex, TW14 8HA, Attention: Corporate Secretary.provide disclosure of any amendments or waivers of our Code of Ethics on our website within five business days following the date of the amendment or waiver.

Item 16C.    Principal Accountant Fees and Services
Item 16C.Principal Accountant Fees and Services
PricewaterhouseCoopers LLP (“PwC”) acted as our independent auditor for the years ended December 31, 20172022 and 2016.2021. The table below sets out the total amount billed to us by PwC, for services performed in the years ended December 31, 20172022 and 2016,2021, and breaks down these amounts by category of service:
(€ in millions)For the year ended December 31, 2022For the year ended December 31, 2021
Audit fees5.3 4.4 
Audit-related fees— 0.3 
Tax fees0.9 1.0 
All other fees0.1 0.1 
Total6.3 5.8 
(€ in millions)For the year ended December 31, 2017 For the year ended December 31, 2016
Audit fees2.8
 3.8
Audit-related fees0.2
 —
Tax fees0.8
 1.9
All other fees—
 —
Total3.8
 5.7

Audit Fees
Audit fees in the years ended December 31, 20172022 and 20162021 are related to the audit of our consolidated financial statements and other audit or interim review services provided in connection with statutory and regulatory filings or engagements.


Audit-Related Fees
AuditAudit-related fees in the year ended December 31, 20172022 and 2021 are related to other assurance services on capital market transactions. There were no audit-related fees in the year ended December 31, 2016.
Tax Fees
Tax fees in the years ended December 31, 20172022 and 20162021 are related to tax compliance and other tax related services.
All Other Fees
There were no otherOther fees in the years ended December 31, 20172022 and 2016.2021 relate to other non-audit assurance services.
Pre-Approval Policies and Procedures
The advance approval of the Audit Committee or members thereof, to whom approval authority has been delegated, is required for all audit and non-audit services provided by our auditors.
All services provided by our auditors are approved in advance by either the Audit Committee or members thereof, to whom authority has been delegated, in accordance with the Audit Committee’s pre-approval policy. No such services were approved pursuant to the procedures described in Rule 2-01(c)(7)(i)(C) of Regulation S-X, which waives the general requirement for pre-approval in certain circumstances.
Item 16D.Exemptions from the Listing Standards for Audit Committees
None
Item 16D.    Exemptions from the Listing Standards for Audit Committees
Item 16E.Purchases of Equity Securities by the Issuer and Affiliated Purchasers
None.
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Item 16E.    Purchases of Equity Securities by the Issuer and Affiliated Purchasers
The following table below presents information related to our repurchasesa summary of ourthe ordinary shares duringrepurchased by the year ended December 31,2017:Company in 2022:
Period 2017
Total Number of Shares Purchased (1)

Average Price Paid Per Share

Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs

Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs

January 1-31————
February 1-28————
March 1-31————
April 1-30————
May 1-31————
June 1-30 (1)9,779,729€9.60——
July 1-31————
August 1-31————
September 1-30 (2)7,063,643€11.78——
October 1-31————
November 1-30————
December 1-31————
PeriodTotal Number of Ordinary Shares PurchasedAverage Price Paid per Ordinary Share (USD)Total Number of Ordinary Shares Purchased as Part of Publicly Announced Plans or ProgramsMaximum Approximate
Value of Shares that may
yet be purchased under
the Plans or Programs in USD
$500m repurchase program (1)
As of December 31, 20213,090,082 24.50 3,090,082 $424,224,433 
January 1, 2021 – January 31, 20221,160,547 26.23 1,160,547 $393,763,086 
Total4,250,629 24.97 4,250,629 $393,763,086 (2)
(1) On June 12, 2017, we repurchased 9,779,729August 5, 2021, the Company announced its Board of ourDirectors authorized a share repurchase program to purchase up to an aggregate $500 million of the Company's ordinary shares beneficially owned by Permira Funds at a purchase price of $10.75 (approximately €9.60) per share, which represents a 25% discountover 3 years. Acquisitions pursuant to the closing priceshare repurchase program may be made from time to time through a combination of Nomad Foods ordinary shares on June 9, 2017, for an aggregate purchase price of $105.1 million (approximately €93.9 million). The transaction related to a final settlement of indemnity claims against an affiliate of Permira Funds, of legacy tax matters that predatedopen market repurchases, privately negotiated transactions, accelerated share repurchase transactions, and/or other derivative transactions, at the Iglo Acquisition.


Company's discretion, as permitted by securities laws and other legal requirements.
(2) On September 11, 2017,As of December 31, 2022, the maximum number of shares that may yet be purchased under the share repurchase program is approximately $393.8 million.
Item 16F.    Change in connection with the registered underwritten public offering of 33,333,334 of our ordinary shares by certain funds managed by Pershing Square Capital Management, L.P., we purchased 7,063,643 ordinary shares from the underwriters in the offering at a price of $14.157 (approximately €11.78), the price payable by the underwriters to the selling shareholders in the offering. We did not sell any ordinary shares in the offering and did not receive any of the proceeds from the offering. We used cash on hand to fund the repurchase of the ordinary shares.Registrants’ Certifying Accountant

Item 16F.Change in Registrants’ Certifying Accountant
Not applicable.
Item 16G.Corporate Governance
Item 16G.    Corporate Governance
Comparison of Shareholder Rights
We wereare incorporated under, and are governed by, the laws of the British Virgin Islands. The following discussion summarizes material differences between the rights of holders of ordinary shares and the rights of shareholdersholders of common stock of a typical corporation incorporated under the laws of the State of Delaware.
Director’s Fiduciary Duties
Under Delaware corporate law, a director of a solvent Delaware corporation has aowes fiduciary dutyduties to the corporation and its shareholders. This duty hasThese duties have two components: the duty of care and the duty of loyalty. The duty of care requires that a director act in good faith, with the care that an ordinarily prudent person would exercise under similar circumstances. Under this duty, a director must inform himself of and disclose to shareholders, all material information reasonably available regarding a significant transaction.decision. The duty of loyalty requires that a director act in a manner he reasonably believes to be in the best interests of the corporation. Hecorporation and its shareholders. A director must not use his corporate position for personal gain or advantage. ThisThe duty of loyalty prohibits self-dealing by a director and mandates that the best interest of the corporation and its shareholders take precedence over any interest possessed by a director, officer or controlling shareholder andthat is not shared by the shareholders generally. In general, the “business judgment rule” presumes that actions of a directorthe board of directors are presumed to have been made on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the corporation. However, thiscorporation and its shareholders. This presumption may be rebutted by evidence of a breach of one of the directors’ fiduciary duties. Should such evidence be presented concerning a transaction by a director, a director must proveIf this presumption is rebutted, the procedural fairnessboard of directors bear the transaction, andburden of proving that the transaction wasactions were “entirely fair” to the corporation or its minority shareholders. In addition, Delaware common law imposes “heightened” judicial scrutiny on actions of fair value todirectors in certain circumstances, such as upon a sale of the corporation.
British Virgin Islands law provides that every director of a British Virgin Islands company in exercising his powers or performing his duties, shall act honestly and in good faith and in what the director believes to be in the best interests of the company. Additionally, the director shall exercise the care, diligence, and skill that a reasonable director would exercise in the same circumstances taking into account the nature of the company, the nature of the decision and the position of the director and his responsibilities. In addition, British Virgin Islands law provides that a
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director shall exercise his powers as a director for a proper purpose and shall not act, or agree to the company acting, in a manner that contravenes British Virgin Islands law or the memorandum and articles of association of the company.
Amendment of Governing Documents
Under Delaware corporate law, with very limited exceptions, a vote of the shareholders of a corporation is required to amend the certificate of incorporation. In addition, Delaware corporate law provides that shareholders have the right to amend the corporation’s bylaws, but the certificate of incorporation may also confer such right on the directors of the corporation.
Our directors may, at any time (including after the Acquisition), without shareholder consent, amend our Memorandum and Articles where the directors determine,Consent in their absolute discretion (acting in good faith), by a resolutionLieu of directors, that such changes are necessary or desirable in connection with or resulting from the Acquisition or in connection with admission to listing on the NYSE.
Written ConsentMeeting
Under Delaware corporate law, a written consent in lieu of a meeting of the directors must be unanimous to take effect. Under British Virgin Islands law and our Memorandum and Articles, only a majority of the directors are required to sign a written consent.


Under Delaware corporate law, unless otherwise provided in the certificate of incorporation, any action to be taken at any annual or special meeting of shareholders of a corporation may be taken without a meeting by written consent of the holders of outstanding stock having not less than the minimum number of votes that would be necessary to take that action at a meeting at which all shareholders entitled to vote were present and voted. If any shareholder action is taken by less than unanimous consent, notice of such action must be given to those shareholders who have not consented and who, if the action had been taken at a meeting, would have been entitled to notice of the meeting if the record date for notice of such meeting had been the date that consents signed by a sufficient number of shareholders were delivered to the corporation.
Our Memorandum and Articles provides that any shareholder action permitted to be taken at a shareholder meeting may also be taken by written consent of a majority of the votes of shares entitled to vote thereon. If any shareholder resolution is adopted otherwise than by the unanimous written consent of all shareholders, a copy of such resolution shall be sent to all shareholders not consenting to such resolution.
Shareholder Proposals
Under Delaware corporate law, a shareholder has the right to put any proposal before the annual meeting of shareholders, provided it complies with theany notice provisions in the governing documents.corporation’s certificate of incorporation or bylaws. A special meeting of shareholders may be called by the board of directors or any other person authorized to do so inby the governing documents, butcorporation’s certificate of incorporation or bylaws; shareholders may be precluded therein from calling special meetings. British Virgin Islands law and our Memorandum and Articles provide that our directors shall call a meeting of the shareholders if requested in writing to do so by shareholders entitled to exercise at least 30% of the voting rights in respect of the matter for which the meeting is requested.
Sale of Assets
Under Delaware corporate law, a vote of the shareholders is required to approve a sale, lease or exchange of property and assets of a corporation (including property and assets of its qualifying subsidiaries) only when all or substantially all of the corporation’s property and assets are being sold other than to a person other than aqualifying subsidiary of the Company.corporation. Under British Virgin Islands law generally, shareholder approval is required when more than 50% of a company’s total assets by value are being disposed of or sold to any person if not made in the usual or regular course of the business carried out by the company. Under our Memorandum and Articles, this requirement of British Virgin Islands law has been disapplied and accordingly no shareholder approval is required in relation to such a disposal or sale.
Redemption of Shares
Under Delaware corporate law, by provision of the certificate of incorporation, any class or series of stock may be made subject to redemption by the corporation at its option, at the option of the holders of that stock or upon the happening of a specified event, provided that after such redemption shares of a class or series of stock with full voting power remain outstanding. The class or series of stock may, by provision of the certificate of incorporation, be made redeemable for cash, property or rights, as specified in the certificate of incorporation or in the resolution of the board of directors providing for the issue of the stock.stock pursuant to the power expressly vested in the board of directors by the certificate of incorporation. Under Delaware corporate law, shares also may be repurchased with the consent of both the corporation and the holder, except that shares may not be repurchased for more than the price at which such shares may then be redeemed at the option of the corporation. Both the redemption and repurchase of shares of a Delaware corporation are subject to certain solvency limitations established by Delaware corporate law and Delaware common
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law. As permitted by British Virgin Islands law and our Memorandum and Articles, shares may be repurchased, redeemed or otherwise acquired by us. However, the consent of the shareholder whose shares are to be repurchased, redeemed or otherwise acquired must be obtained, except as specified in the terms of the applicable class or series of shares.
Squeeze-Out Merger
Under the Delaware General Corporation Law § 253, in a process known as a “short form” merger, a corporation that owns at least 90% of the outstanding shares of each class of voting stock of another corporation and where at least one of the corporations is a Delaware corporation and the laws of the jurisdiction of the other corporation don’t prohibit such action, may either merge the other corporation into itself and assume all of its obligations or merge itself into the other corporation by executing, acknowledging and filing with the Delaware Secretary of State a certificate of such ownership and merger setting forth a copy of the resolution of its board of directors authorizing such merger. If the parent corporation is a Delaware corporation that is not the surviving corporation, the merger also must be approved by a majority of the outstanding stock of the parent corporation.corporation entitled to vote thereon and the resolution must include provision for the pro rata issuance of stock of the surviving corporation to the holders of the stock of the parent corporation on surrender of any certificate therefor. If the parent corporation does not own all of the stock of the subsidiary corporation immediately prior to the merger, the minority shareholders of the subsidiary corporation party to the merger may have appraisal rights as set forth in § 262 of the Delaware General Corporation Law.
Under the BVI Act, subject to any limitations in a company’s memorandum and articles of association, members holding 90% of the votes of the outstanding shares entitled to vote, and members holding 90% of the votes of the outstanding shares of each class of shares entitled to vote, may give a written instruction to the company directing the company to redeem the shares held by the remaining members. In our Memorandum and Articles, we have opted out of the BVI Act’s squeeze out provisions.


Variation of Rights of Shares
Under Delaware corporate law, a corporation may vary the rights of a class of stock with the approval of a majority of the outstanding shares entitled to vote thereon, and, in certain circumstances, including if such variation would change the rights of such class so as to affect them adversely, with the approval of a majority of the outstanding shares of thatsuch class, unless the certificate of incorporation provides otherwise. voting separately as a single class.
As permitted by British Virgin Islands law and our Memorandum and Articles, we may vary the rights attached to any class with the written consent of at least 50% of the holders of each class of shares affected or by a resolution passed by at least 50% of the votes cast by eligible holders of the issued shares of the affected class at a separate meeting of the holders of that class However, notwithstanding the foregoing, the directors may make such variation to the rights of any class of shares that they, in their absolute discretion (acting in good faith) determine to be necessary or desirable in connection with or resulting from the Acquisition (including at any time after the Acquisition has been made) including in connection with admission to listing on the NYSE.class.
Election of Directors
Under Delaware corporate law generally, unless otherwise specified in the certificate of incorporation or bylaws of a corporation, directors are elected by a plurality of the votes of the shares entitled to vote on the election of directors.directors and vacancies and newly created directorships resulting from an increase in the number of directors may be filled by a majority of the directors then in office (although less than a quorum) or by the sole remaining director. Subject to the BVI Act and pursuant to our Memorandum and Articles, directors shall be appointed at any time, and from time to time, by our directors, without the approval of shareholders, either to fill a vacancy or as an alternate or additional director. The shareholders may, by a majority vote, appoint any person as a director. In addition, for so long as an initial holder of Founder Preferred Shares holds 20% or more of the Founder Preferred Shares in issue, such holder is entitled to nominate, and the directors are required to appoint, a person as director. If such holder notifies the Company to remove any director nominated by him or her, the other directors shall remove such director, and the holder will have the right to nominate a director to fill the resulting vacancy. In the event an initial holder ceases to be a holder of Founder Preferred Shares or holds less than 20% of the Founder Preferred Shares in issue, such initial holder will no longer be entitled to nominate a person as a director, and the holders of a majority of the Founder Preferred Shares in issue will be entitled to exercise that initial holder’s former rights to appoint a director instead.
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Removal of Directors
Under Delaware corporate law generally, a director of a corporation without a classified board may be removed, with or without cause, by the holders of a majority (or such larger portion set forth in the certificate of incorporation) of the outstanding shares entitled to vote at an election of directors. Under Delaware corporate law, generally a director of a corporation with a classified board may be removed only for cause with the approval of a majority (or such larger portion set forth in the certificate of incorporation) of the outstanding shares entitled to vote at an election of directors, unless the certificate of incorporation provides otherwise. Under Delaware corporate law, generally a director may resign at any time upon notice given in writing or by electronic transmission to the corporation.
Our Memorandum and Articles provide that a director may be removed at any time if: (i) he resigns by written notice to the Company; (ii) he is requested to resign by written notice of all of the other directors; (iii) he ceases to be a director by virtue of any provision of law or becomes prohibited by law from or is disqualified from being a director; (iv) he becomes bankrupt or makes any arrangement or composition with his creditors generally or otherwise has any judgment executed on any of his assets; (v) he becomes of unsound mind or incapable; (vi) he is absent from meetings of directors for a consecutive period of 12 months and the other directors resolve that his office shall be vacated; (vii) he dies; or (viii) a resolution of shareholders is approved by a majority of the shares entitled to vote on such matter passed at a meeting of shareholders called for the purposes of removing the director or for purposes including the removal of the director or a written special resolution of shareholders is passed by at least 75% of the votes of shares entitled to vote thereon.
Mergers
Under Delaware corporate law, one or more constituent corporations may merge into and become part of another constituent corporation in a process known as a merger. A Delaware corporation may merge with a foreign corporation as long as the law of the foreign jurisdiction permits such a merger. To effect a merger under Delaware General Corporation Law § 251, an agreement of merger must be properly adopted and the agreement of merger or a certificate of merger must be filed with the Delaware Secretary of State. In order to be properly adopted, the agreement of merger must be adopted by the board of directors of each constituent Delaware corporation by a resolution or unanimous written consent.consent in lieu of a meeting. In addition, the agreement of merger generally must be approved at a meeting of shareholders of each constituent Delaware corporation by a majority of the outstanding stock of thesuch corporation entitled to vote, unless the certificate of incorporation provides for a supermajority vote. In general, the surviving corporation assumesis vested in all of the assets and liabilities of the disappearing corporation or corporations as a result of the merger.


Under the BVI Act, two or more companies may merge or consolidate in accordance with the statutory provisions. A merger means the merging of two or more constituent companies into one of the constituent companies, and a consolidation means the uniting of two or more constituent companies into a new company. In order to merge or consolidate, the directors of each constituent company must approve a written plan of merger or consolidation, which must be authorized by a resolution of shareholders. One or more companies may also merge or consolidate with one or more companies incorporated under the laws of jurisdictions outside the British Virgin Islands if the merger or consolidation is permitted by the laws of the jurisdictions in which the companies incorporated outside the British Virgin Islands are incorporated. In respect of such a merger or consolidation, a British Virgin Islands company is required to comply with the provisions of the BVI Act, and a company incorporated outside the British Virgin Islands is required to comply with the laws of its jurisdiction of incorporation.
Shareholders not otherwise entitled to vote on the merger or consolidation may still acquire the right to vote if the plan of merger or consolidation contains any provision that, if proposed as an amendment to the memorandum and articles of association, would entitle them to vote as a class or series on the proposed amendment. In any event, all shareholders must be given a copy of the plan of merger or consolidation irrespective of whether they are entitled to vote at the meeting or consent to the written resolution to approve the plan of merger or consolidation.
Inspection of Books and Records
Under Delaware corporate law, any shareholder of a corporation may, upon proper demand, and for any proper purpose, inspect or make copies of the corporation’s stock ledger, list of shareholders and other books and records. Members of the public, on payment of the requisite fee, can obtain a copy of a Delaware corporation’s certificate of incorporation.
Under British Virgin Islands law, members of the general public, on payment of a nominal fee, can obtain copies of the public records of a company available at the office of the British Virgin Islands Registrar of Corporate Affairs, including the company’s certificate of incorporation, its memorandum and articles of association (with any
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amendments), records of license fees paid to date, any articles of dissolution, any articles of merger and a register of charges if the company has elected to file such a register.
A shareholder of a company is entitled, on giving written notice to the company, to inspect:
(a)the memorandum and articles of association;
(b)the register of members;
(c)the register of directors; and
(d)the minutes of meetings and resolutions of shareholders and of those classes of shares
                of which he is a shareholder.
In addition, a shareholder may make copies of or take extracts from the documents and records referred to in (a) through (d) above. However, subject to the memorandum and articles of association of the company, the directors may, if they are satisfied that it would be contrary to the company’s interests to allow a shareholder to inspect any document, or part of any document, specified in (b), (c) or (d) above, refuse to permit the shareholder to inspect the document or limit the inspection of the document, including limiting the making of copies or the taking of extracts from the records. Where a company fails or refuses to permit a shareholder to inspect a document or permits a shareholder to inspect a document subject to limitations, that shareholder may apply to the court for an order that he should be permitted to inspect the document or to inspect the document without limitation.
Where a British Virgin Islands company keeps a copy of the register of members or the register of directors at the office of its registered agent, it is required to notify the registered agent of any changes to the originals of such registers, in writing, within 15 days of any change; and to provide the registered agent with a written record of the physical address of the place or places at which the original register of members or the original register of directors is kept. Where the place at which the original register of members or the original register of directors is changed, the company is required to provide the registered agent with the physical address of the new location of the records within 14 days of the change of location.
A British Virgin Islands company is also required to keep at the office of its registered agent or at such other place or places, within or outside the British Virgin Islands, as the directors determine the minutes of meetings and resolutions of shareholders and of classes of shareholders, and the minutes of meetings and resolutions of directors and committees of directors. If such records are kept at a place other than at the office of the company’s registered agent, the company is required to provide the registered agent with a written record of the physical address of the place or places at which the records are kept and to notify the registered agent, within 14 days, of the physical address of any new location where such records may be kept. The Company’s registered agent in the British Virgin Islands is: Intertrust Corporate Services (BVI) Limited, Ritter House, Wickhams Cay II, Road Town, Tortola, British Virgin Islands.


Conflict of Interest
Under Delaware corporate law, a contract or transaction between a corporation and a director or officer, or between a corporation and any other organization in which a director or officer has a financial interest or is a director or officer, is not void or voidable as long as (i) the material facts as to the director’s or officer’s relationship or interest are disclosed or known and (ii) either (A) a majority of the disinterested directors authorizes the contract or transaction in good faith or (B) the shareholders vote in good faith to approve the contract. Nor will any such contract be void if itor transaction or (ii) the contract or transaction is fair to the corporation when it is authorized, approved or ratified by the board of directors, a committee thereof or the shareholders. Delaware corporate law permits the corporation to renounce, in its certificate of incorporation or by action of its board of directors, any interest or expectancy of the corporation in, or in being offered an opportunity to participate in, specified business opportunities or specified classes or categories of business opportunities that are presented to the corporation or one or more of its officers, directors or stockholders.
The BVI Act provides that a director shall, forthwith after becoming aware that he is interested in a transaction entered into or to be entered into by the company, disclose that interest to the board of directors of the company. The failure of a director to disclose that interest does not affect the validity of a transaction entered into by the director or the company, so long as the director’s interest was disclosed to the board prior to the company’s entry into the transaction or was not required to be disclosed because the transaction is between the company and the director himself and is otherwise in the ordinary course of business and on usual terms and conditions. As permitted by British Virgin Islands law and our Memorandum and Articles, a director interested in a particular transaction may vote on it, attend meetings at which it is considered and sign documents on our behalf that relate to the transaction. In addition, if our directors have other fiduciary obligations, including to other companies on whose board of directors they presently sit and
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to other companies whose board of directors they may join in the future, to the extent that they identify business opportunities that may be suitable for us or other companies on whose board of directors they may sit, our directors are permitted to honor those pre-existing fiduciary obligations ahead of their obligations to us. Accordingly, they may refrain from presenting certain opportunities to us that come to their attention in the performance of their duties as directors of such other entities unless the other companies have declined to accept such opportunities or clearly lack the resources to take advantage of such opportunitiesopportunities.
Transactions with Interested Shareholders“Interested Stockholders”
Delaware corporate law contains a business combination statute applicable to Delaware public corporations whereby, unless the corporation has specifically elected not to be governed by that statute by amendment to its certificate of incorporation,appropriate action, it is prohibited from engaging in certain business combinations with an “interested shareholder”stockholder” for three years following the date that the person becomes an interested shareholder.“interested stockholder.” An interested shareholder“interested stockholder” generally is a person or group that owns or owned 15% or more of the company’scorporations’s outstanding voting stock within the past three years. This statute has the effect of limiting the ability of a potential acquirer to make a two-tiered bid for the companycorporation in which all shareholders would not be treated equally. The statute does not apply if, among other things, prior to the date on which the shareholder becomes an interested shareholder,“interested stockholder,” the board of directors approves either the business combination or the transaction that resulted in the person becoming an interested shareholder.“interested stockholder.”
British Virgin Islands law has no comparable provision. However, although British Virgin Islands law does not regulate transactions between a company and its significant shareholders, it does provide that these transactions must be entered into in the bona fide best interests of the company and not with the effect of constituting a fraud on the minority shareholders.
Independent Directors
There are no provisions under Delaware corporate law or under the BVI Act that require a majority of our directors to be independent.
Cumulative Voting
Under Delaware corporate law, cumulative voting for elections of directors is not permitted unless the company’scorporation’s certificate of incorporation specifically provides for it. Cumulative voting potentially facilitates the representation of minority shareholders on a board of directors since it permits the minority shareholder to cast all the votes to which the shareholder is entitled on a single director, which increases the shareholder’s voting power with respect to electing such director. There are no prohibitions on cumulative voting under the laws of the British Virgin Islands, but our Memorandum and Articles do not provide for cumulative voting.


Shareholders’ Rights under British Virgin Islands Law Generally
The BVI Act provides for certain remedies that may be available to shareholders. Where a company incorporated under the BVI Act or any of its directors engages in, or proposes to engage in, conduct that contravenes the BVI Act or the company’s memorandum and articles of association, British Virgin Islands courts can issue a restraining or compliance order. However, shareholders cannot also bring derivative, personal and representative actions under certain circumstances. The traditional English basis for shareholders’ remedies has also been incorporated into the BVI Act: where a shareholder of a company considers that the affairs of the company have been, are being or are likely to be conducted in a manner likely to be oppressive, unfairly discriminating or unfairly prejudicial to him, he may apply to the court for an order based on such conduct. In addition, any shareholder of a company may apply to the courts for the appointment of a liquidator of the company and the court may appoint a liquidator of the company if it is of the opinion that it is just and equitable to do so.
The BVI Act also provides that any shareholder of a company is entitled to payment of the fair value of his shares upon dissenting from any of the following: (i) a merger, if the company is a constituent company, unless the company is the surviving company and the shareholder continues to hold the same or similar shares; (ii) a consolidation, if the company is a constituent company; (iii) any sale, transfer, lease, exchange or other disposition of more than 50% in value of the assets or business of the company if not made in the usual or regular course of the business carried on by the company but not including (a) a disposition pursuant to an order of the court having jurisdiction in the matter, (b) a disposition for money on terms requiring all or substantially all net proceeds to be distributed to the shareholders in accordance with their respective interest within one year after the date of disposition, or (c) a transfer pursuant to the power of the directors to transfer assets for the protection thereof; (iv) a redemption of 10% or fewer of the issued shares
90

of the company required by the holders of 90% or more of the shares of the company pursuant to the terms of the BVI Act; and (v) an arrangement, if permitted by the court.
Generally, any other claims against a company by its shareholders must be based on the general laws of contract or tort applicable in the British Virgin Islands or their individual rights as shareholders as established by a company’s memorandum and articles of association.
Foreign Private Issuer Exemption
As a “foreign private issuer,” as defined by the SEC, we are permitted to follow certain corporate governance practices of our home country, the British Virgin Islands, instead of those otherwise required under the NYSE for domestic issuers. While we voluntarily follow most NYSE corporate governance rules, we intend to take advantage of the following limited exemptions:
•Unlike NYSE corporate governance rules, under BVI law, there is no requirement that our board of directors consist of a majority of independent directors and our independent directors are not required to hold executive sessions. Currently, however only six out of our eleventen board members are independent based on NYSE independence standards. Also, while our board’s non-management directors will meet regularly in executive session without management, our board does not intend to hold an executive session of only independent directors at least once a year as called for by the NYSE.
•The NYSE rules applicable to domestic issuers require disclosure within four business days of any determination to grant a waiver of the code of business conduct and ethics to directors and officers. Although we will require board approval of any such waiver, we may choose not to disclose the waiver in the manner set forth in the NYSE rules, as permitted by the foreign private issuer exemption.
•We are exempt from the rules and regulations under the Exchange Act and NYSE related to the furnishing and content of proxy statements. Therefore, we intend to hold annual shareholder meetings in accordance with the corporate governance practices of the British Virgin Islands and our Memorandum and Articles of Association. Similarly, with respect to matters on which shareholders will have a right to vote, we intend to comply with corporate governance practices of the British Virgin Islands and the voting requirements under the NYSE rules applicable to foreign private issuers.
Item 16H.Mine Safety Disclosure
Item 16H.    Mine Safety Disclosure
None.


Item 16I.    Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Item 17.Financial Statements
Not Applicable.applicable.



Item 17.    Financial Statements
Item 18.Financial Statements
See item 18.
91

Item 18.    Financial Statements
The following financial statements, together with the report of PricewaterhouseCoopers LLP thereon, are filed as part of this annual report:
NOMAD FOODS LIMITED AND SUBSIDIARIES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Page
Page
F-F-11
F-3
Consolidated Statements of Financial Position
F-F-44
F-F-55
F-F-66
F-F-77
F-F-1010
F-F-1111

92



Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of Nomad Foods Limited

Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidatedConsolidated Statements of Financial Position of Nomad Foods Limited and its subsidiaries (Successor)(the “Company”) as of December 31, 20172022 and 2016,2021, and the related Consolidated Statements of Profit or Loss, Consolidated Statements of Comprehensive Income, Consolidated Statements of Changes in Equity, and Consolidated Statements of Cash Flows for each of the twothree years in the period ended December 31, 2017, for the nine months ended December 31, 2015 and for the year end March 31, 20152022, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2017,2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 20172022 and 2016,2021, and the results of theirits operations and theirits cash flows for each of twothe three years in the period ended December 31, 2017, for the nine months ended December 31, 2015 and for the year end March 31, 20152022 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board and in conformity with International Financial Reporting Standards as adopted by the European Union. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017,2022, based on criteria established inInternal Control - Integrated Framework (2013) issued by the COSO.


Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s annual report on internal control over financial reporting appearing under Item 15 of the 2017 Annual Report on Form 20-F.item 15. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB")(PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.




Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorizedunauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
F-1


Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.


Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Impairment assessment for goodwill and indefinite life brands

As described in Notes 3, 4 and 13 to the consolidated financial statements, the Company’s consolidated goodwill balance was €2,101.6 million and indefinite life brands were €2,416.4 million at December 31, 2022. The Company’s goodwill and indefinite life brand values have been allocated based on the enterprise value at acquisition of each cash generating unit. Goodwill is monitored at an operating segment level for which the Company has one reporting and operating segment, ‘Frozen'. Management performs an annual review of the carrying amount of the goodwill and the indefinite life brands to identify whether there is any impairment. The review is performed using a discounted cash flow model to calculate the value in use of the Frozen segment. Impairment is identified by comparing the value in use of the Frozen segment to its carrying value. Estimating value in use requires management to make assumptions and estimates regarding historical information, future plans and external sources. The values for the key assumptions relating to the annual review of the carrying amount of goodwill and indefinite life brands were arrived at by taking into consideration detailed historical information and comparison to external sources where appropriate, such as market rates for discount factors. Key assumptions include projected revenues, profit margins, capital expenditure forecast, discount rate, and long-term growth rate.

The principal considerations for our determination that performing procedures relating to the impairment assessment for goodwill and indefinite life brands is a critical audit matter are the significant estimation by management when developing the value in use using the discounted cash flow model. This in turn led to a high degree of auditor judgement, subjectivity, and effort in performing procedures and evaluating audit evidence related to management’s significant assumptions, including projected revenues, profit margins, long-term growth rate and discount rate. In addition, the audit effort involved the use of professionals with specialised skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s goodwill and indefinite life brands impairment assessment, including controls over the discounted cash flow model. These procedures also included, among others, testing management’s process for developing the estimated value in use; evaluating the appropriateness of the discounted cash flow model; testing the completeness, accuracy and relevance of underlying data used in the model; and evaluating the reasonableness of the significant assumptions used by management including the projected revenues, profit margins, capital expenditure forecast, long-term growth rate, and discount rate. Evaluating the reasonableness of management’s assumptions involved evaluating (i) the current and past performance of the Company, (ii) the consistency with external market and industry data, and (iii) whether these assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialised skills and knowledge were used to assist in evaluating the reasonableness of the discount rate and long term growth rate assumptions.

Uncertain tax positions

As described in Notes 3, 4 and 11 to the consolidated financial statements, the Company operates in many different jurisdictions and in some of these there are certain tax matters which are under discussion with local tax authorities. As disclosed by management, there are on-going tax audits. Management considers these tax audits and discussions with local tax authorities as well as the local tax legislation relative to their tax positions in those jurisdictions when identifying uncertain tax positions. These discussions are often complex and can take many years to resolve, and are in different stages with respect to assessments, appeals and refunds. Where tax exposures can be quantified, a provision is made based on management’s estimates and judgements with regard to the amounts expected to be paid to the relevant tax authority. The factors considered in estimating the provision include the progress of discussions with
F-2

the tax authorities, the complexity of respective tax legislation, valuations of assets for tax purposes and the level of documentary support for historical positions taken by previous owners. As of December 31, 2022, the provisions for uncertain tax positions were €152.9 million. Given the inherent uncertainties in assessing the outcomes of these exposures, the Company could in future periods experience adjustments to these provisions.

The principal considerations for our determination that performing procedures relating to uncertain tax positions is a critical audit matter are the significant judgement by management when identifying and determining provisions for uncertain tax positions, and the estimation required due to the complexity of tax legislation across various jurisdictions, and ongoing discussions with local tax authorities. This in turn led to a high degree of auditor judgement, subjectivity, and effort in performing procedures and evaluating evidence related to the identification, recognition and measurement of uncertain tax positions. Additionally, the audit effort involved the use of professionals with specialised skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the identification, recognition and measurement of the provisions for uncertain tax positions, and controls addressing completeness of the uncertain tax positions. These procedures also included, among others, (i) testing the completeness, accuracy and relevance of the information used in the estimate of the provision for uncertain tax positions; (ii) assessing the method for determining the provisions for uncertain tax positions; (iii) evaluating management’s assessment of the technical merits of tax positions and estimates of the amount of tax expected to be paid to the relevant tax authorities; (iv) testing the completeness of management’s assessment of the identification of uncertain tax positions; (v) assessing whether the uncertain tax positions remain appropriate to recognise when considering the tax laws in the relevant jurisdiction; and (vi) evaluating the status and results of tax audits and progress of discussions with the relevant tax authorities. Professionals with specialised skill and knowledge were used to assist in the evaluation of the completeness of the uncertain tax positions identified, and the recognition and measurement of those positions, including evaluating the reasonableness of management’s assessment of whether tax positions are probable.





/s/ PricewaterhouseCoopers LLP (Firm ID: 876)
London, United Kingdom
March 22, 2018February 23, 2023


We have served as the Company’s or its predecessor's1 auditor since 2006.


Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Nomad Foods Limited
In our opinion, the accompanying Consolidated Statements of Profit or Loss, of Comprehensive Income, of Changes in Equity and of Cash Flows for the five months ended May 31, 2015 present fairly, in all material respects, the results of operations and cash flows of 1Nomad Foods Europe Holdings Limited (previously Iglo Foods Holdings Limited) and its subsidiaries (Predecessor) in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board and in conformity with International Financial Reporting Standards as adopted by the European Union. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.


/s/ PricewaterhouseCoopers LLP
F-3
London, United Kingdom
March 30, 2017




Consolidated Statements of Financial Position


December 31, 2022December 31, 2021
Note€m€m
Non-current assets
Goodwill132,101.6 2,099.4 
Intangibles132,457.6 2,455.7 
Property, plant and equipment12542.9 549.4 
Other non-current assets188.1 8.9 
Derivative financial instruments340.2 — 
Deferred tax assets16100.4 128.3 
Total non-current assets5,210.8 5,241.7 
Current assets
Cash and cash equivalents20369.7 254.2 
Inventories17457.1 410.6 
Trade and other receivables18266.8 234.6 
Indemnification assets191.8 9.5 
Derivative financial instruments3419.9 20.2 
Total current assets1,115.3 929.1 
Total assets6,326.1 6,170.8 
Current liabilities
Trade and other payables22695.4 692.0 
Current tax payable183.0 198.5 
Provisions2436.1 39.3 
Loans and borrowings2122.6 29.1 
Derivative financial instruments343.7 7.3 
Total current liabilities940.8 966.2 
Non-current liabilities
Loans and borrowings212,142.3 2,198.3 
Employee benefits23132.1 244.2 
Other non-current liabilities221.1 1.8 
Provisions241.3 2.9 
Derivative financial instruments3456.6 20.8 
Deferred tax liabilities16445.7 437.6 
Total non-current liabilities2,779.1 2,905.6 
Total liabilities3,719.9 3,871.8 
Net assets2,606.2 2,299.0 
Equity
Share capital and capital reserve251,596.7 1,623.1 
Share-based compensation reserve2613.8 6.9 
Founder Preferred Shares Dividend Reserve27— 166.0 
Translation reserve2889.3 105.1 
Other reserves2919.8 10.5 
Retained earnings886.6 387.4 
Total equity2,606.2 2,299.0 
   Successor Successor
   December 31, 2017 December 31, 2016
 Note €m €m
Non-current assets     
Goodwill13 1,745.6
 1,745.6
Intangibles13 1,724.4
 1,726.6
Property, plant and equipment12 295.4
 298.2
Other receivables18 4.3
 0.4
Derivative financial instruments34 18.6
 —
Deferred tax assets16 64.3
 64.9
Total non-current assets  3,852.6
 3,835.7
Current assets     
Cash and cash equivalents20 219.2
 329.5
Inventories17 306.9
 325.0
Trade and other receivables18 147.1
 135.7
Indemnification assets19 73.8
 65.5
Capitalized borrowing costs21 —
 5.0
Derivative financial instruments34 2.1
 13.1
Total current assets  749.1
 873.8
Total assets  4,601.7
 4,709.5
Current liabilities     
Trade and other payables22 477.5
 472.7
Current tax payable  145.3
 162.3
Provisions24 68.0
 116.7
Loans and borrowings21 3.3
 —
Derivative financial instruments34 7.8
 1.4
Total current liabilities  701.9
 753.1
Non-current liabilities     
Loans and borrowings21 1,395.1
 1,451.8
Employee benefits23 188.4
 190.9
Trade and other payables22 1.8
 1.0
Provisions24 72.8
 77.0
Derivative financial instruments34 61.4
 —
Deferred tax liabilities16 327.7
 333.2
Total non-current liabilities  2,047.2
 2,053.9
Total liabilities  2,749.1
 2,807.0
Net assets  1,852.6
 1,902.5
Equity attributable to equity holders     
Share capital25 —
 —
Capital reserve25 1,623.7
 1,800.7
Share-based compensation reserve26 2.9
 1.0
Founder Preferred Shares Dividend Reserve27 493.4
 493.4
Translation reserve28 83.2
 84.0
Cash flow hedging reserve29 (3.0) 8.4
Accumulated deficit reserve  (347.6) (485.0)
Total equity  1,852.6
 1,902.5
The accompanying notes are an integral part of these consolidated financial statements.


Consolidated Statements of Profit or Loss
   Successor Successor Successor Successor  Predecessor
   Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 Note €m €m €m €m  €m
Revenue5 1,956.6
 1,927.7
 894.2
 —
  640.3
Cost of sales  (1,357.2) (1,356.7) (663.0) —
  (417.9)
Gross profit  599.4
 571.0
 231.2
 —
  222.4
Other operating expenses  (319.3) (298.4) (138.6) (0.7)  (109.5)
Charge related to Founder Preferred Shares Annual Dividend Amount27 —
 —
 (349.0) (165.8)  —
Credit/(charge) related to Warrant Redemption Liability25 —
 —
 0.4
 (0.4)  —
Exceptional items7 (37.2) (134.5) (58.1) (0.7)  (84.3)
Operating profit/(loss)6 242.9
 138.1
 (314.1) (167.6)  28.6
Finance income10 7.2
 24.2
 8.7
 0.1
  2.0
Finance costs10 (81.6) (86.3) (44.2) —
  (117.7)
Net finance (costs)/income  (74.4) (62.1) (35.5) 0.1
  (115.7)
Profit/(loss) before tax  168.5
 76.0
 (349.6) (167.5)  (87.1)
Taxation11 (32.0) (39.6) 12.3
 —
  (40.9)
Profit/(loss) for the period  136.5
 36.4
 (337.3) (167.5)  (128.0)
Earnings per share:            
Basic earnings/(loss) per share30 0.78
 0.20
 (2.32) (3.35)  n.p.
Diluted earnings/(loss) per share30 0.74
 0.20
 (2.32) (3.35)  n.p.

The accompanying notes are an integral part of these consolidated financial statements.

F-4



Consolidated Statements of Comprehensive IncomeProfit or Loss
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
Note€m€m€m
Revenue52,939.7 2,606.6 2,515.9 
Cost of sales(2,124.4)(1,862.3)(1,753.4)
Gross profit815.3 744.3 762.5 
Other operating expenses(391.2)(356.3)(382.7)
Exceptional items7(48.7)(45.3)(20.6)
Operating profit6375.4 342.7 359.2 
Finance income1012.1 0.1 4.7 
Finance costs10(66.5)(106.1)(68.4)
Net financing costs(54.4)(106.0)(63.7)
Profit before tax321.0 236.7 295.5 
Taxation11(71.2)(55.7)(70.4)
Profit for the year249.8 181.0 225.1 
Attributable to:
Equity owners of the parent249.8 181.0 225.2 
Non-controlling interests— — (0.1)
249.8 181.0 225.1 
Earnings per share:
Basic earnings per share30€1.43€1.02€1.16
Diluted earnings per share30€1.43€1.02€1.14
   Successor Successor Successor Successor  Predecessor
   Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 Note €m €m €m €m  €m
Profit/(loss) for the period  136.5
 36.4
 (337.3) (167.5)  (128.0)
Other comprehensive (loss)/income:            
Actuarial gains/(losses) on defined benefit pension plans23 2.9
 (23.6) 19.4
 —
  (2.5)
Taxation (charge)/credit on remeasurement of defined benefit pension plans11 (2.0) (6.3) (6.1) —
  0.7
Items not reclassified to the Consolidated Statement of Profit or Loss  0.9
 (29.9) 13.3
 —
  (1.8)
Foreign currency (loss) / gain  —
 —
 (1.7) 88.9
  44.7
Loss on investment in foreign subsidiary, net of hedge  (0.8) (0.5) (2.7) —
  —
Effective portion of changes in fair value of cash flow hedges29 (16.4) 10.1
 1.6
 —
  —
Taxation credit/(charge) relating to components of other comprehensive income11 5.0
 (2.8) (0.5) —
  —
Items that may be subsequently reclassified to the Consolidated Statement of Profit or Loss  (12.2) 6.8
 (3.3) 88.9
  44.7
Other comprehensive (loss)/income for the period, net of tax  (11.3) (23.1) 10.0
 88.9
  42.9
Total comprehensive income/(loss) for the period attributable to Owners of the Parent Company  125.2
 13.3
 (327.3) (78.6)  (85.1)

The accompanying notes are an integral part of these consolidated financial statements.




F-5

Consolidated Statements of Changes in EquityComprehensive Income
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
Note€m€m€m
Profit for the year249.8 181.0 225.1 
Other comprehensive income/(loss):
Actuarial gains/(losses) on defined benefit pension plans23108.1 36.1 (27.8)
Taxation (charge)/credit on remeasurement of defined benefit pension plans11(26.1)(10.2)8.3 
Items not reclassified to the Consolidated Statement of Profit or Loss82.0 25.9 (19.5)
(Loss)/gain on investment in foreign subsidiary, net of hedge(15.8)18.8 (10.1)
Cash flow hedges2967.8 22.6 (17.3)
Taxation (charge)/credit relating to components of other comprehensive income11(3.3)(13.6)6.0 
Items that may be subsequently reclassified to the Consolidated Statement of Profit or Loss48.7 27.8 (21.4)
Other comprehensive income/(loss) for the period, net of tax130.7 53.7 (40.9)
Total comprehensive income for the period380.5 234.7 184.2 
Attributable to:
Equity owners of the parent380.5 234.7 184.3 
Non-controlling interests— — (0.1)
380.5 234.7 184.2 
   Share capital Capital reserve Share-based compensation reserve Founder preferred shares dividend reserve Translation reserve Cash flow hedging reserve Accumulated deficit reserve Total equity
SUCCESSORNote €m €m €m €m €m €m €m €m
Balance at April 1, 2014  — — — — — — — —
Loss for the year  — — — — — — (167.5) (167.5)
Other comprehensive income for the year  — — — — 88.9 — — 88.9
Total comprehensive income/(loss) for the year  — — — — 88.9 — (167.5) (78.6)
Transactions with owners of the Company  
 
 
 
 
 
 
 
Issue of Ordinary Shares25
 — 350.9 — — — — — 350.9
Issue of Founder Preferred Shares25
 — 10.6 — — — — — 10.6
Cost of Admission25
 — (8.0) — — — — — (8.0)
Total transactions with owners, recognized directly in equity  — 353.5 — — — — — 353.5
Balance at March 31, 2015  — 353.5 — — 88.9 — (167.5) 274.9
SUCCESSOR                 
Balance at April 1, 2015  — 353.5 — — 88.9 — (167.5) 274.9
Loss for the period  — — — — — — (337.3) (337.3)
Other comprehensive (loss)/income for the period  — — — — (4.4) 1.1 13.3 10.0
Total comprehensive (loss)/income for the period  — — — — (4.4) 1.1 (324.0) (327.3)
Transactions with owners of the Company  
 
 
 
 
 
 
 
Issue of Ordinary Shares25
 — 1,414.2 — — — — — 1,414.2
Cost of Admission25
 — (5.3) — — — — — (5.3)
Founder Preferred Shares Annual Dividend Amount27
 — — — 531.5 — — — 531.5
Share based payment charge  — — 0.1 — — — — 0.1
Total transaction with owners, recognized directly in equity  — 1,408.9 0.1 531.5 — — — 1,940.5
Balance as of December 31, 2015  — 1,762.4 0.1 531.5 84.5 1.1 (491.5) 1,888.1



Consolidated Statements of Changes in Equity (continued)
   Share capital Capital reserve Share-based compensation reserve Founder preferred shares dividend reserve Translation reserve Cash flow hedging reserve Accumulated deficit reserve Total equity
SUCCESSORNote €m €m €m €m €m €m €m €m
Balance at January 1, 2016  — 1,762.4 0.1 531.5 84.5 1.1 (491.5) 1,888.1
Profit for the year  — — — — — — 36.4 36.4
Other comprehensive (loss)/income for the year  — — — — (0.5) 7.3 (29.9) (23.1)
Total comprehensive (loss)/income for the year  — — — — (0.5) 7.3 6.5 13.3
Transactions with owners of the Company  
 
 
 
 
 
 
 
Founder Preferred Shares Annual Dividend Amount  — 38.1 — (38.1) — — — —
Issue of Ordinary Shares25
 — 0.2 — — — — — 0.2
Vesting of Non-Executive Restricted Stock award  — — (0.3) — — — — (0.3)
Share based payment charge  — — 1.2 — — — — 1.2
Total transaction with owners, recognized directly in equity  — 38.3 0.9 (38.1) — — — 1.1
Balance as of December 31, 201625
 — 1,800.7 1.0 493.4 84.0 8.4 (485.0) 1,902.5



Consolidated Statements of Changes in Equity (continued)
  Share capital Capital reserve Share-based compensation reserve Founder preferred shares dividend reserve Translation reserve Cash flow hedging reserve Accumulated deficit reserve Total equity
SUCCESSORNote€m €m €m €m €m €m €m €m
Balance at January 1, 2017 — 1,800.7 1.0 493.4 84.0 8.4 (485.0) 1,902.5
Profit for the year — — — — — — 136.5 136.5
Other comprehensive (loss)/income for the year — — — — (0.8) (11.4) 0.9 (11.3)
Total comprehensive (loss)/income for the year — — — — (0.8) (11.4) 137.4 125.2
Transactions with owners of the Company 
 
 
 
 
 
 
 
Repurchase of ordinary shares25
— (177.1) — — — — — (177.1)
Listing and share transaction costs25
— (0.5) — — — — — (0.5)
Vesting of Non-Executive Restricted Stock award26
— 0.6 (0.7) — — — — (0.1)
Share based payment charge26
— — 2.6 — — — — 2.6
Total transactions with owners, recognized directly in equity — (177.0) 1.9 — — — — (175.1)
Balance at December 31, 2017 — 1,623.7 2.9 493.4 83.2 (3.0) (347.6) 1,852.6

The accompanying notes are an integral part of these consolidated financial statements.



F-6

Consolidated Statements of Cash FlowsChanges in Equity
Share capital and capital reserveShare-based compensation reserveFounder preferred shares dividend reserveTranslation reserveOther reserves(Accumulated deficit reserve)/ Retained earningsEquity attributable to owners of the parentNon-controlling interestsTotal Equity
Note€m€m€m€m€m€m€m€m€m
Balance at January 1, 20202,095.4 22.6 370.1 94.8 (13.2)(11.8)2,557.9 (1.2)2,556.7 
Profit/(loss) for the year———— — 225.2 225.2 (0.1)225.1 
Other comprehensive loss for the year———(10.1)(11.3)(19.5)(40.9)— (40.9)
Total comprehensive (loss)/incomes for the year— — — (10.1)(11.3)205.7 184.3 (0.1)184.2 
Founder Preferred Shares Annual Dividend Amount27124.6 — (124.6)— — — — — — 
Vesting of Non-Executive Restricted Stock award80.7 (0.7)— — — — — — — 
Issue of ordinary shares258.4 (7.9)— — — — 0.5 — 0.5 
Repurchase of ordinary shares25(608.6)— — — — — (608.6)— (608.6)
Share based payment charge8— 9.0 — — — — 9.0 — 9.0 
Reclassification of awards for settlement of tax liabilities26— (14.7)— — — — (14.7)— (14.7)
Non-controlling interests on acquisition of subsidiary— — — — — (2.3)(2.3)1.3 (1.0)
Total transactions with owners, recognized directly in equity(474.9)(14.3)(124.6)— — (2.3)(616.1)1.3 (614.8)
Balance as of December 31, 20201,620.5 8.3 245.5 84.7 (24.5)191.6 2,126.1 — 2,126.1 
   Successor Successor Successor Successor  Predecessor
   Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 Note   €m €m €m €m  €m
Cash generated from operations before tax and exceptional items32 358.5
 356.2
 159.2
 0.2
  102.2
Cash flows relating to exceptional items  (99.5) (49.2) (91.6) (0.7)  (6.2)
Tax paid  (65.2) (24.9) (19.6) —
  (17.3)
Net cash flows from/(used in) operating activities  193.8
 282.1
 48.0
 (0.5)  78.7
Cash flows from investing activities            
Purchase of Iglo, net of cash acquired  —
 —
 (693.6) —
  —
Purchase of Findus, net of cash acquired  —
 —
 (556.9) —
  —
Contingent consideration for purchase of Frudesa brand  —
 (8.0) —
 —
  —
Purchase of property, plant and equipment12 (38.0) (38.0) (19.3) —
  (6.0)
Purchase of intangibles13 (4.6) (4.4) (2.1) —
  (0.3)
Purchase of portfolio investments  —
 —
 —
 (478.8)  —
Redemption of portfolio investments  —
 —
 312.1
 183.2
  —
Net cash used in investing activities  (42.6) (50.4) (959.8) (295.6)  (6.3)
Cash flows from financing activities            
Proceeds from issuance of Founder Preferred Shares25 —
 —
 —
 10.6
  —
Proceeds from issuance of Ordinary Shares25 —
 —
 1,171.8
 350.9
  —
Costs of admission25 —
 —
 (5.3) (8.0)  —
Loans from Founder Entities for incorporation  —
 —
 —
 0.1
  —
Repayment of loans to Founder Entities  —
 —
 —
 (0.1)  —
Proceeds from new loans and notes  1,470.5
 —
 325.0
 —
  —
Repayment of loan principal  (1,469.5) —
 (490.0) —
  —
Payment of finance leases  (1.6) (0.7) —
 —
  —
Payment of financing fees  (16.7) —
 (14.0) —
  —
Repurchase of ordinary shares  (177.6) —
 —
 —
  —
Proceeds/(loss) on settlement of derivatives  1.6
 (4.0) 4.3
 —
  —
Interest paid  (48.8) (70.9) (40.8) —
  (31.4)
Interest received  0.3
 7.9
 1.5
 —
  2.0
Net cash (used in)/from financing activities  (241.8) (67.7) 952.5
 353.5
  (29.4)
Net (decrease)/increase in cash and cash equivalents  (90.6) 164.0
 40.7
 57.4
  43.0
Cash and cash equivalents at beginning of period20 329.5
 186.1
 126.8
 —
  219.2
Effect of exchange rate fluctuations  (19.7) (20.6) 18.6
 69.4
  6.2
Cash and cash equivalents at end of period20 219.2
 329.5
 186.1
 126.8
  268.4


F-7

Consolidated Statements of Changes in Equity (continued)
Share capital and capital reserveShare-based compensation reserveFounder preferred shares dividend reserveTranslation reserveOther reservesRetained earningsTotal Equity
Note€m€m€m€m€m€m€m
Balance at December 31, 20201,620.5 8.3 245.5 84.7 (24.5)191.6 2,126.1 
Adjustment on adoption of hedge accounting under IFRS 9— — — 1.6 (1.6)— — 
Balance as at January 1, 20211,620.5 8.3 245.5 86.3 (26.1)191.6 2,126.1 
Profit for the year— — — — — 181.0 181.0 
Other comprehensive income for the period— — — 18.8 9.0 25.9 53.7 
Total comprehensive income for the period— — — 18.8 9.0 206.9 234.7 
Deferred hedging gains transferred to the carrying value of inventory— — — — 27.6 — 27.6 
Transactions with owners, recognized directly in equity
Founder Preferred Shares Annual Dividend Amount2779.5 — (79.5)— — — — 
Vesting of Non-Executive Restricted Stock award80.6 (0.6)— — — — — 
Issue of ordinary shares250.1 (0.1)— — — — — 
Repurchase of ordinary shares25(77.6)— — — — — (77.6)
Share based payment charge8— 5.1 — — — — 5.1 
Reclassification of awards for settlement of tax liabilities26— (5.8)— — — (11.1)(16.9)
Total transactions with owners, recognized directly in equity2.6 (1.4)(79.5)— — (11.1)(89.4)
Balance as of December 31, 20211,623.1 6.9 166.0 105.1 10.5 387.4 2,299.0 


F-8

Consolidated Statements of Changes in Equity (continued)
Share capital and capital reserveShare-based compensation reserveFounder preferred shares dividend reserveTranslation reserveOther reservesRetained earningsTotal Equity
Note€m€m€m€m€m€m€m
Balance at December 31, 20211,623.1 6.9 166.0 105.1 10.5 387.4 2,299.0 
Profit for the year— — — — — 249.8 249.8 
Other comprehensive (loss)/income for the year— — — (15.8)64.5 82.0 130.7 
Total comprehensive income for the year— — — (15.8)64.5 331.8 380.5 
Deferred hedging gains transferred to the carrying value of inventory— — — — (55.2)— (55.2)
Transactions with owners, recognized directly in equity
Release of Founder Preferred Shares Annual Dividend reserve27— — (166.0)— — 166.0 — 
Vesting of Non-Executive Restricted Stock award80.4 (0.4)— — — — — 
Repurchase of ordinary shares25(26.8)— — — — — (26.8)
Share based payment charge8— 8.1 — — — — 8.1 
Reclassification of awards for settlement of tax liabilities26— (0.8)— — — 1.4 0.6 
Total transactions with owners, recognized directly in equity(26.4)6.9 (166.0)— — 167.4 (18.1)
Balance as of December 31, 20221,596.7 13.8 — 89.3 19.8 886.6 2,606.2 
The accompanying notes are an integral part of these consolidated financial statements.


F-9

Consolidated Statements of Cash Flows
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
Note  €m€m€m
Cash generated from operations before tax and exceptional items32424.8 450.3 552.0 
Payments relating to exceptional items(65.2)(48.8)(12.1)
Receipts relating to exceptional items24.4 — — 
Tax paid(80.2)(95.2)(82.9)
Net cash flows from operating activities303.8 306.3 457.0 
Cash flows from investing activities
Business combinations, net of cash acquired140.4 (597.3)(112.9)
Purchase of property, plant and equipment and intangibles(79.1)(79.2)(58.7)
Purchase of investments— — (25.0)
Redemption of investments— 16.5 25.2 
Net cash used in investing activities(78.7)(660.0)(171.4)
Cash flows from financing activities
Proceeds from issuance of Ordinary Shares25— — 0.6 
Repurchase of Ordinary Shares25(26.8)(77.6)(608.6)
Payments related to shares withheld for tax26(2.9)(22.6)(19.2)
Proceeds from new loans and notes799.3 800.0 — 
Repayment of loan principal(916.2)(408.7)(11.7)
Payment of lease liabilities(26.5)(19.4)(20.3)
Payment of financing fees(6.5)(18.7)— 
Interest paid(54.2)(36.7)(50.2)
Interest received0.6 0.1 0.7 
Proceeds from settlement of derivatives124.8 — — 
Other financing cash flows0.3 (2.0)(6.1)
Net cash (used in)/provided by financing activities(108.1)214.4 (714.8)
Net increase/(decrease) in cash and cash equivalents117.0 (139.3)(429.2)
Cash and cash equivalents at beginning of period20254.2 382.5 824.8 
Effect of exchange rate fluctuations(4.4)11.0 (13.1)
Cash and cash equivalents at end of period20366.8 254.2 382.5 

The accompanying notes are an integral part of these consolidated financial statements.
F-10

Notes to the Consolidated Financial Statements
1)General information
1)General information
Nomad Foods Limited (the “Company” or “Nomad”) was incorporated in the British Virgin Islands on April 1, 2014. The address of Nomad’s registered office is Nemours Chambers,Ritter House, Wickhams Cay II, Road Town, Tortola, VG1110 British Virgin Islands. The Company is domiciled for tax in the United Kingdom.
Nomad Foods Limited (NYSE: NOMD) is aEurope's leading frozen foods company building a globalcompany. Nomad Foods Limited's (the “Company” or “Nomad”) portfolio of best-in-classiconic brands, which includes Birds Eye, Findus, iglo, Ledo and Frikom, have been a part of consumers’ meals for generations, standing for great tasting food companiesthat is convenient, high quality and brands within the frozen category andnutritious. Nomad Foods is headquartered in the future across the broader food sector. Nomad produces, markets and distributes brands in 17 countries and has the leading market share in Western Europe. The Company’s portfolioUnited Kingdom. Additional information may be found at www.nomadfoods.com.
2)Basis of leading frozen food brands includes Birds Eye, Iglo, and Findus.preparation
2)Basis of preparation
The consolidated financial statements of Nomad and its subsidiaries (the “Company” or “Nomad”, or the “Successor”) and the consolidated financial statements of Nomad Foods Europe Holdings Limited (previously “Iglo Foods Holdings Limited”) (the “Predecessor”) have been prepared in accordance with the International Financial Reporting Standards issued by the International Accounting Standards Board. These consolidated financial statements are also in accordance with International Financial Reporting StandardsBoard and as adopted by the European Union.
On June 1, 2015 Nomad Foods Limited (previously “Nomad Holdings Limited”) acquired Iglo Foods Holding Ltd (the “Iglo Group”The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities. We evaluate our estimates on an ongoing basis using our historical experience, as well as other factors we believe are appropriate under the circumstances, such as supply chain disruptions, high inflation and the “Iglo Acquisition”). Nomad Foods Limitedongoing conflict between Ukraine and Russia. Actual results could differ from these estimates. The Directors, at the time of approving these financial statements, have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least 12 months from the date of signing these financial statements given the cash funds available and the current forecast cash outflows. In preparing cash flow forecasts, management considers severe but plausible downside scenarios taking into consideration the Company's key risks, including the current economic climate which may adversely impact the Company. Having considered these risks the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.Thus, they continue to adopt the going concern basis in preparing these financial statements.
Amendments to IAS 12 - Deferred Tax related to Assets and Liabilities arising from a Single Transaction
In May 2021, the International Accounting Standards Board issued targeted amendments to IAS 12, Income Taxes. The amendments are effective for annual periods beginning on or after January 1, 2023, although earlier application is listedpermitted. With a view to reducing diversity in reporting, the amendments will clarify that companies are required to recognize deferred taxes on the New York Stock Exchangetransactions where both assets and Iglo Foods Holdings Limited, a direct subsidiary of Nomad, is consideredliabilities are recognized, such as with leases and asset retirement (decommissioning) obligations. Based upon our current facts and circumstances, we do not expect our financial performance or disclosure to be materially affected by the “Predecessor”application of Nomad Foods Limited (the “Successor”), as prior to the Iglo Acquisition, Nomad Foods Limited had no operations.amended standard.
On November 2, 2015 the Company acquired Findus Sverige ABRecently Issued and its subsidiaries (the “Findus Group” and the “Findus Acquisition”). The acquired business included operations across continental EuropeNot Yet Adopted Accounting Pronouncements under IFRS
None with leading market positions in France, Sweden and Spain along with the intellectual and commercialization rights to the Findus, Lutosa (until 2020) and La Cocinera brands in their respective markets.
On January 1, 2017, the Company adopted the following relevant amendments to IFRS. Neither of these have anymaterial impact on the results or financial position of the Company.
–Amendments to IAS 7 “Disclosure Initiative”; for which additional disclosures have been made for changes in liabilities arising from financing activities; and
–Amendments to IAS 12 "Recognition of Deferred Tax Assets for Unrealised Losses"
Refer to 3.22 for more information on new IFRSs not yet adopted.Other
The Company’sconsolidated financial statements and notes are presented in the reporting currency of millions of Euros. Upon the acquisition of the Iglo Group on June 1, 2015, Nomad changed its functional and presentational currency from U.S. Dollars to Euros because this is the functional and presentational currency of the Iglo Group, which comprised all of Nomad’s operations at that time. All financial information has been rounded to the nearest €0.1 million, except where otherwise indicated.
On May 28, 2015 the Company changed its year end reporting date from March 31 to December 31 to align with the historical reporting calendar of the Iglo Group. This change has no impact on the financial statements and notes included herein. Fiscal year 2015 is a nine month period for the Company, which might not be comparable to the full year comparative amounts.
The consolidated financial statements were approved for issuance by the Board of Directors of Nomad Foods Limited on March 20, 2018.February 21, 2023. The Directors have, at the time of approving the financial statements, a reasonable expectation that Nomad has adequate resources to continue in operational existence for the foreseeable future given the cash funds available and the current forecast cash outflows. Thus, Nomad continues to adopt the going concern basis of accounting in preparing the financial statements.



3)    Accounting policies
3)Accounting policies
The accounting policies set out below have, unless otherwise stated, been applied consistently.
Judgments made by the Directors in the application of these accounting policies that have a significant effect on the financial statements and key sources of estimation uncertainty are discussed in Note 4.
3.1Measurement convention
F-11

3.1    Measurement convention
The financial statements are prepared on the historical cost basis with the exception of derivative financial instruments, business combinations, share based payments, and founder preferred shares which are stated at fair value.
3.2Business combination
3.2    Business combination
The Company uses the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interest issued by the Company. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are expensed as incurred.
Non-controlling interests arise from business combinations in which the Company acquires less than a 100 per cent interest. Non-controlling interests are initially measured at either fair value or at the non-controlling interest’s proportionate share of the fair value of the acquiree’s identifiable net assets. Nomad determines on a transaction by transaction basis which measurement method is used.
The excess of the consideration transferred, the amount of any non-controlling interests in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets is recorded as goodwill.
Where selling shareholders have contractually agreed to indemnify Nomad Foods Limited for contingent liabilities, an indemnification asset is recognized equivalent to the fair value of the liability recognized by Nomad. The indemnification asset is deducted from consideration transferred for the business combination. The indemnification asset value will subsequently be revised where revisions are made to the value of the liability or where there are doubts over the ability to recover losses from the selling shareholders.
3.3Basis of consolidation
3.3    Basis of consolidation
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany balances and transactions, and any unrealized income and expenses arising from intra-group transactions are eliminated. Accounting policies are applied consistently across the Company.
Subsidiaries are all entities (including structured entities) over which Nomad has control; directly or indirectly. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases.
3.4Foreign currency
i)Foreign currency transactions
Where the Company owns less than a 100 per cent interest in a subsidiary, a non-controlling interest is recognized. The carrying amount of non-controlling interests is increased or decreased by the non-controlling interest’s share of subsequent changes in equity and payments to the non-controlling interest. Total comprehensive income is attributed to the non-controlling interests even if this results in the non-controlling interests having a negative balance.
F-12

3.4    Foreign currency
i)    Foreign currency transactions
Transactions in foreign currencies (currencies other than the functional currency)currency of the transacting entity) are translated into the functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the foreign exchange rate ruling the financial year end. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges, qualifying net investment hedges or are attributable to part of a net investment in a foreign operation.


Non-monetary assets and liabilities in a foreign currency are translated into the functional currency to establish historical cost, using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated at foreign exchange rates ruling at the date the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.
The revenues and expenses of foreign operations are translated at an average rate for the period (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transaction).
ii)Assets and liabilities of foreign operations
ii)    Assets and liabilities of foreign operations
For the purposes of presenting consolidated financial statements, the assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are translated at foreign exchange rates ruling at the financial year ended December 31, 20172022 of £1:€1.13 (December 31, 2016: £1:€1.17, (December 31, 2015:2021: £1:€1.36)1.19). The revenues and expenses of foreign operations are translated at an average rate for the period where this rate approximates to the foreign exchange rates ruling at the dates of the transactions. The average rate used for year ended December 31, 2022 is £1:€1.17 (year ended December 31, 2021: £1:€1.16, year ended December 31, 2020: £1:€1.13).
Foreign exchange gains and losses that relate to these assets and liabilities are presented in the Consolidated Statement of Profit or Loss within ‘finance income or costs’, except where hedge accounting applies.
iii)Net investment in foreign operations
iii)    Net investment in foreign operations
Exchange differences arising from the translation of foreign operations and of any related qualifying hedges are taken directly to the translation reserve within equity. They are realized through the Consolidated Statement of Profit or Loss upon disposal of the related foreign operation.
3.5Goodwill
3.5    Goodwill
Goodwill represents amounts arising on acquisition of subsidiaries. Goodwill is the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired.
Goodwill is stated at cost less any accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to the cash-generating unit and is not monitored below the operating segment unit.segment. Goodwill is not amortized but is tested annually for impairment. Refer to 3.7 for discussion on cash-generating units.
3.6Other intangible assets
F-13

3.6    Other intangible assets
Intangible assets acquired separately are recorded at cost and those acquired as part of a business combination are recorded at fair value as at the date of acquisition.

i)    Computer software

i)Computer software
Capitalized software costs include the cost of acquired computer software licenses and costs that are directly associated with the design, construction and testing of such software where this relates to a major business system. Costs associated with identifying, sourcing, evaluating or maintaining computer software are recognized as an expense within other operating expenses as incurred.
The assets are stated at cost less accumulated amortization and impairment losses. Software costs are amortized by equal monthly installments over their estimated useful economic life of five to seventen years once the software is capable of being brought into use.
ii)Brands
Basedii)    Brands
Our largest brands, including Birds Eye, iglo, Findus, Ledo and Frikom are considered to have indefinite lives. This is based on the market position of the brands, the significant levels of investment in advertising and promoting the brands, and the fact that they have been established for over 50 years, the Directors consider that the Birds Eye, Iglo and Findus brands have indefinite lives.at least 20 years. Therefore these brands are not amortized, but instead held at historical cost less provision for any impairment.
The La Cocinera and Lutosa brands (Lutosa used under license until 2020)Brands that are deemed to not have an indefinite life and are being amortized by equal monthly installments within other operating expenses over 10 and 6 years respectively.the course of their remaining useful economic life.
iii)Customer relationships
iii)    Customer relationships
Long standing Food Service customer relationships have been identified as intangible assets as part of the Findus Acquisition.business combinations. These are deemed to not have an indefinite life and are being amortized by equal monthly installments within other operating expenses over their expected lives. The most significant of these assets were acquired as part of the Findus Acquisition in 2015 and are being amortized over 14 years.
3.7Impairment of non-current assets
3.7    Impairment of non-current assets
The carrying amounts of the Company’s non-current assets are reviewed annually to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. Impairment losses are recognized in the Consolidated Statement of Profit or Loss in the period in which they arise. For goodwill and assets that have an indefinite useful life an impairment review is performed at least annually.
Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the net carrying amount may not be recoverable. An impairment loss is recognized whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount.
i)Calculation of recoverable amount
i)    Calculation of recoverable amount
Recoverable amount is the greater of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows of the business are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

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ii)    Allocation of impairment losses


ii)Allocation of impairment losses
Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to cash-generating units, then to reduce the carrying amount of the other assets in the unit on a pro rata basis. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
iii)Reversals of impairment
iii)    Reversals of impairment
An impairment loss in respect of goodwill is not reversed. In respect of other assets, an impairment loss is reversed when there is an indication that the impairment loss may no longer exist and there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
3.8Property, plant and equipment
i)Owned assets
3.8    Property, plant and equipment
i)    Owned assets
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.
Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.
ii)Leased assets
ii)    Leased assets
The Company leases various properties, equipment and cars. The Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Where a contract contains both lease and non-lease components, the Group has elected to account for the contract as a single lease.
Leases inare recognized as a right-of-use asset and a corresponding liability at the date at which the Company assumes substantially all the risks and rewards of ownership of the leased asset are classifiedis available for use by the group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as ‘finance leases’. Where land and buildings are held under finance leasesto produce a constant periodic rate of interest on the accounting treatmentremaining balance of the landliability for each period. The right-of-use asset is considered separately from thatclassified within property, plant and equipment and is depreciated over the shorter of the buildings. Leased assets acquired by way of financeasset's useful life or the lease term on a straight-line basis.
Assets and liabilities arising from a lease are stated at an amount equal toinitially measured on a present value basis. Lease liabilities are presented within loans and borrowings and include the lower of their fair value and thenet present value of the minimumexpected lease payments, including those from extension options if the Company reasonably expects to exercise them. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, otherwise the Company’s incremental borrowing rate is used. Right-of-use assets are measured at inceptioncost comprising the amount of the lease less accumulated depreciationliability, adjusted for payments made or received before the commencement date, initial direct costs and impairment losses.restoration costs.
All otherPayments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are classified as ‘operating leases’.leases with a lease term of 12 months or less. Low-value assets primarily comprise IT equipment and small items of office furniture.
iii)Depreciation
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iii)    Depreciation
Depreciation is charged to the Consolidated Statement of Profit or Loss on a straight line basis over the shorter of the lease term and the estimated useful lives of each part of an item of property, plant and equipment once the item is brought into use. Land is not depreciated. The estimated useful lives are as follows:
•Buildings 40 years
•Plant and equipment 5 to 1420 years
•Computer equipment 3 to 5 years


The assets’ residual values and useful lives are reviewed on a frequentan annual basis.
3.9Inventories
3.9    Inventories
Inventories are stated at the lower of cost and net realizable value. Cost is based on the weighted average principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. Inventories that are acquired through business combinations are fair valued at the time of acquisition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of direct costs and overheads based on normal operating capacity. Provision is made for slow moving, obsolete and defective inventories.
3.10Employee benefits
i)Defined contribution plans
3.10    Employee benefits
i)    Defined contribution plans
Obligations for contributions to defined contribution pension plans are recognized as an expense in the Consolidated Statement of Profit or Loss as incurred. Prepaid contributions are recognized as an asset to the extent that a cash refund or reduction in the future payments is available.
ii)Defined benefit plans
ii)    Defined benefit plans
The Company’s net obligation in respect of defined benefit pension plans and other post-employment benefits is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods. That net obligation is discounted to determine its present value. The calculation is performed by a qualified actuary using the projected unit credit method.
The current service cost of the defined benefit plan, recognized in the Consolidated Statement of Profit or Loss in staff costs included within Operating profit/(loss), except where included in the cost of an asset, reflects the increase in the defined benefit obligation resulting from employee service in the current year, benefit changes, curtailments and settlements.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in Other Comprehensive Income in the period in which they arise.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Consolidated Statement of Profit or Loss.
Past service cost is recognized immediately.
iii)Share-based payment schemes
iii)    Share-based payment schemes
Employee benefits given through share-based payment schemes are discussed further in section 3.15 within Accounting policies.of this note.
3.11Founder Preferred Shares
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3.11    Founder Preferred Shares
Nomad Foods issued Founder Preferred Shares to both TOMS Acquisition I LLC and Mariposa Acquisition II, LLC (collectively the “Founder Entities”) in connection with its initial public offering in April 2014. Holders of the Founder Preferred Shares arewere entitled to receive annual dividend amounts subject to certain performance conditions (the “Founder Preferred Shares Dividend Amount”). The instrument and its component parts were analyzed


under IFRS 2. The Company intendsintended that any future Founder Preferred Shares Annual Dividend Amount willwould be equity settled. Accordingly, the Founder Preferred Shares Annual Dividend Amount as of June 1, 2015, of €531.5 million (the “Founder Preferred Shares Dividend reserve”) was classified as equity and no further revaluations will be required or recorded.
Should a Founder Preferred Share Annual Dividend Amount become due and payable, the market value of any dividend paid will bethat have been issued have been deducted from the Founder Preferred Shares Dividend reserve, with anyreserve. Following the end of the period in which dividends are payable the excess deducted from the accumulated profit/(deficit) reservehas been transferred to retained earnings within equity.
3.12Provisions
3.12    Provisions
Provisions are recognized when the Company has a legal or constructive present obligation as a result of a past event and it is probable that the Company will be required to settle that obligation. Provisions are measured at the Directors’ best estimate of the expenditure required to settle the obligation at the financial year end date and are discounted to present value where the effect is material.
Where it is not possible to make a reliable estimate of the estimated financial effect of a provision, appropriate disclosure of the resulting contingent liability is made, but no provision is recognized.
The Company is currently in discussions with the tax authorities in one of its markets regarding the treatment of the acquisition of the Iglo Group in 2006 by the previous owners. The Company has an indemnity in respect of this tax issue, but has not recognized an indemnification asset or a provision for this matter.3.13    Financial instruments
3.13Financial instruments
Financial assets and liabilities are recognized in the Company’s Statement of Financial Position when the Company becomes a party to the contractual provisions of the instrument.
i)Trade receivables
i)    Trade receivables
Trade receivables are measured at initial recognition at fair valueamounts due from customers for goods sold when control of the products has transferred, being when the products are delivered in accordance with the contractual arrangements. At this point, there is no unfulfilled performance obligation that could affect the customer’s acceptance of the product, except for returns due to quality. The Company holds the trade receivables with the objective of collecting the contractual cash flows and so they are subsequently measured at amortized cost using the effective interest method, less any impairment.loss allowance. Since trade receivables are due within one year, this equates to initial carrying value less any impairment.loss allowance.
To assist in managing operating cash flow, we may enter into non-recourse factoring arrangements with certain receivables whereby we sell specific accounts receivables to one or more external financial institutions. The risks and rewards of ownership are considered to have been transferred at the point of sale. Up to the point of sale, these receivables are treated as held for sale and measured at fair value through Profit or Loss. Under the terms of the contractual arrangements, the Company may continue to collect the cash from the customer receivables sold, albeit acting solely as a collecting agent on behalf of the purchaser of receivables. Any cash received from customers which is due to be paid to the agent is presented as a financial liability in the Statement of Financial Position and as a financing activity within the Statement of Cash Flows. Factoring fees associated with the sale of factored receivables were minimal for all periods presented. See Note 18.
The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. Trade receivables are grouped by days past due. Expected loss rates are based on historical credit losses experienced in each market as well as forward looking information where this is significant. Trade receivables are written off when there is no reasonable expectation of recovery. Appropriate allowances for expected credit losses and estimated irrecoverable amounts are recognized in the Consolidated Statement of Profit or Loss when there is objective evidence that the asset is impaired.Loss.
F-17

Trade receivables are presented net of customer rebate balances.associated contract liabilities, referred to as 'trade terms' as discussed further in Note 3.14 and Note 4.
ii)Cash and cash equivalents
ii)    Cash and cash equivalents
Cash and cash equivalents comprise of cash balances and call deposits.deposits that are readily convertible to a known amount of cash and are measured at amortized cost. Deposits held in money market funds are measured at fair value through Profit or Loss as the cash flows do not only represent principal and interest.
iii)Loans and borrowings
a.Valuation
iii)    Loans and borrowings
a.    Valuation
Interest bearing borrowings are recognized initially at fair value less attributable transaction costs.


Subsequent to initial recognition, interest bearing loans and borrowings are stated at amortized cost with any difference between cost and redemption value being recognized in the Consolidated Statement of Profit or Loss over the expected period of the borrowings.
b.Capitalization of transaction costs
Feesb.    Capitalization of debt discounts and transaction fees
Discounts on issuance of debt as well as directly attributable transaction fees paid on the establishment of loan facilities are recognized as transaction costscapitalized and amortized over the life of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs.debt.
iv)Trade payables
iv)    Trade payables
Trade payables are measured at initial recognition at fair value and are subsequently measured at amortized cost using the effective interest method. Since trade payables are largely due within one year, this equates to initial carrying value.
v)Derivative financial instruments and hedge accounting
v)    Derivative financial instruments and hedge accounting
Derivative financial instruments are recognized at fair value. When a derivative financial instrument is not designated in a hedge accounting relationship, that qualifies for hedge accounting, all changes in its fair value are recognized immediately in the Consolidated Statement of Profit or Loss. However, where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged. Since the adoption of IFRS 9 for hedge accounting on January 1, 2021, the Company has elected the cost of hedging approach for the fair value movement on currency basis spreads of all hedging relationships, whereby the movements will be recognized within equity, if material, to the extent that they relate to the hedged item. In cash flow hedges of a forecast transaction that result in the recognition of a non-financial item (such as inventory), the amounts that were accumulated in the cash flow hedging reserve and the cost of hedging reserve are included in the initial cost of the non-financial item upon its recognition.
The fair value of all financial derivative financial instruments (including but not limited to forward foreign exchange contracts, currency swaps, interest rate swaps and cross currency interest rates swaps), is determined per market standard using forward foreign exchange and interest rates at the balance sheet date, with the resulting value discounted back to present value.
Cross currency interest rate swaps are managed based
F-18

Since the adoption of IFRS 9 for hedge accounting on their net exposureJanuary 1, 2021, the Company applies the hedge accounting requirements of IFRS 9 to credit risks. The Company hasall hedging relationships. IAS 39 was used beforehand with the exceptionimpact of the change presented in IFRS 13 to allow this groupthe Statement of derivatives to be measured on a net basis by each counterpart.Changes in Equity.
a.    Cash flow hedges
Where a derivative financial instrument is designated as a hedge of the variability in cash flowsflow of a recognized asset or liability, or(including a highly probable forecast transaction,transaction) the effective part of any gain or loss on the derivative financial instrument is recognized directly in the cash flow hedging reserve.reserve, within other reserves. Any ineffective portion of the hedge is recognized immediately in the Consolidated Statement of Profit or Loss.
Since the adoption of IFRS 9 for hedge accounting on January 1, 2021, if the result of a forecasted transaction is recognition of a non-financial asset (for example inventory), the amounts that were accumulated in the cash flow hedging reserve and the cost of hedging reserve (presented together as 'Other reserves') are included in the initial cost of the non-financial item upon its recognition. For all other hedged forecasted transactions, the amounts accumulated in the hedging reserve and cost of hedging reserve are reclassified to the Consolidated Statement of Profit or Loss in the same period, or periods, in which the hedged forecasted future cash flows affect the Consolidated Statement of Profit or Loss.
When a hedging instrument expires or is sold, terminatedexercised or exercised,otherwise terminated, or the entity revokes designation of the hedge relationship but the hedged forecast transaction is still expected to occur, the cumulative gain or loss at that point remains in equity and is recognized when the transaction occurs. If the hedged transaction is no longer expected to take place, the cumulative unrealized gain or loss recognized in equity is recognized in the Consolidated Statement of Profit or Loss immediately.

When a hedging instrument is substantially modified, any fair value gain or loss is recognized immediately in the Consolidated Statement of Profit or Loss.

b.    Net investment hedges
b.Net investment hedges
Foreign currency differences arising on the retranslation of the spot rate component of a financial liability designated as a hedge of a net investment in a foreign operation are recognized in Other Comprehensive Income to the extent that the hedge is effective, and are presented in the translation reserve within equity. 
Since the adoption of IFRS 9 for hedge accounting on January 1, 2021, the change in fair value of the future price element of the hedging instrument (‘forward element’) is not included as part of the hedging relationships and is recognized in the Consolidated Statement of Profit or Loss immediately.
F-19

To the extent that any net investment hedge is entered into and the hedge is deemed effective, any foreign currency differences arising on the retranslation of the spot rate component of a financial liability designated as a hedge of a net investment in a foreign operation are recognized in Other Comprehensive Income, and are presented in the translation reserve within equity. To the extent that the hedge is ineffective, such differences are recognized in the Consolidated Statement of Profit or Loss. When the hedged net investment is disposed of, the relevant amount in the translation reserve is transferred to the Consolidated Statement of Profit or Loss as part of the gain or loss on disposal.
3.14Revenue
vi)    Short-term investments
The Company may invest surplus cash positions in short-term investments to manage liquidity and credit risk. Short‐term investments are held within managed investment funds and are measured at fair value with all changes in fair value are recognized immediately in the Consolidated Statement of Profit or Loss.
Short-term investments are valued using inputs that are derived principally from or corroborated by observable market data.
3.14    Revenue comprises salesfrom contracts with customers
The Company manufactures and sells a range of goods after deduction of discounts, sales taxesfrozen foods to retail, wholesale and excludes intra-company sales. Discounts given by the Company include rebates, price reductions and incentives given to customers, promotional couponing and trade communication costs. At each financial year end date any discount incurred, but not yet invoiced, is estimated and accrued.
Food Service markets. Revenue is recognized when the title and risk of losscontrol of the underlying products have beenhas transferred, being when the products are delivered to the customer at whichin accordance with the contractual arrangements. At this point, there is no unfulfilled performance obligation that could affect the sale price is fixed or determinable. This completes the revenue-earning process specifically that an arrangement exists, delivery has occurred, ownership has transferred, the price is determined and collectability is reasonably assured. The timingcustomer’s acceptance of the transfer of risks and rewards varies depending on the individual terms of the sales agreement.product, except for returns due to quality. A provision for payment discounts and product return allowances, which is estimated based upon the Company’s historical performance and management’s experience, and current economic trends, is recorded as a reduction of sales in the same period that the revenue is recognized. Revenue excludes sales taxes and intra-company sales.
Products are often sold with variable pricing arrangements, including payment discounts, trade promotions and slotting fees. Discounts given by the Company include rebates, price reductions and incentives to customers, promotional couponing and trade communication costs. Trade promotions consisting primarilyconsist of customer pricing allowances, and merchandising funds and customer coupons, which are offered through various programs to customers and consumers. Sales are recorded net of estimated trade promotion spending, which is recognized as incurred at the time of sale. Certain retailers require the payment of slotting fees in order to obtain space for the Company’s products on the retailers’ store shelves. The fees
Where variable pricing arrangements are recognized as reductions ofin place, revenue on the date a liabilityis only recognized to the retailerextent that it is created. These amounts are included inhighly probable that a significant reversal will not occur. Accumulated experience is used to estimate and provide for the determination of net sales.discounts. Revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. Accruals for expected pay-outs under these programs are collectively known as ‘trade terms’ and are included within trade and other receivables or within trade and other payables in the Consolidated Statement of Financial Position. Coupon redemption costsNo element of financing is deemed present as the payment terms are also recognized as reductionsmade in line with market practice and accruals are typically settled within twelve months of net sales when the coupons are issued. Estimates of trade promotion expense and coupon redemption costs are based upon programs offered, timing of those offers, estimated redemption/usage rates from historical performance, management’s experience and current economic trends.sale.
Trade marketing expense is comprised of amounts paid to retailers for programs designed to promote our products and are classified in the Consolidated Statement of Profit or Loss as a reduction of revenue.
3.153.15    Share based payments
Successor
Nomad Foods 2015 Long Term Incentive Plan
The Nomad Foods 2015 Long TermLong-term Incentive Plan known as the (the “LTIP”"Management Share Awards"), which incorporates an annual Non-Executive Directors Restricted Stock Scheme, falls within the provisions of IFRS 2 “Share-based Payment” and awards under the LTIPManagement Share Awards represent equity settled share based payments. A charge is taken to the Consolidated Statement of Profit or


Loss for the difference between the fair value of the shares at grant date and the amount subscribed, spread over the vesting period.
Share based payment arrangements in which Nomad receives goods or services as consideration for its own equity instruments are accounted for as equity-settled share based payment transactions, regardless of how the equity instruments are obtained by Nomad.
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The grant date fair value of share-based payment awards granted to any Director or employee is recognized as an associated expense, with a corresponding increase in equity, over the period that any Director or employee becomes unconditionally entitled to the awards.
The fair value of the awards granted is measured using a valuation model, taking into account the terms and conditions upon which the awards were granted. The amount recognized as an expense is adjusted to reflect the actual number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that do meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.
See Note 8b8(b) for further information on the Company’s share-based payment arrangements and details of the valuation model used.
Predecessor3.16    Interest income
At the end of each reporting period, the Iglo Group revised its estimates of the number of interests that were expected to vest based on the non-market vesting conditions. It recognized the impact of the revision to original estimates, if any, in the Consolidated Statement of Profit or Loss, with a corresponding adjustment to equity.
Other management incentive schemes
If schemes fall outside the scope of IFRS 2, since they are not related to the price or value of equity instruments, but do fall within the scope of IAS 19 “Employee Benefits”, an annual charge is taken over the service period based on an estimate of the amount of future benefit employees will earn in return for their service.
3.16Interest income
Interest income is recognized in the Consolidated Statement of Profit or Loss on an accruals basis using the effective interest method.
3.17Expenses
i)Operating lease payments
Payments made under operating leases are recognized in the Consolidated Statement of Profit or Loss on a straight line basis over the term of the lease. Lease incentives received are recognized on a straight line basis in the Consolidated Statement of Profit or Loss as an integral part of the total lease expense.3.17    Expenses & Exceptional items
ii)Borrowing costs
i)    Borrowing costs
Unless capitalized as part of the cost of borrowing (see Note 3.13(iii)), borrowing costs are recognized in the Consolidated Statement of Profit or Loss in the period in which they are incurred.

ii)    Exceptional items

iii)Exceptional items
The separate reporting of exceptional items which are presented as exceptional within the relevant Consolidated Statement of Profit or Loss category, helps provide an indication of the Company’s underlying business performance. Exceptional items have been identified and presented by virtue of their size, nature or incidence. In determining whether an event or transaction is specific,exceptional, management considers quantitative as well as qualitative factors such as the frequency or predictability of occurrence. Exceptional items comprise restructuring costs, impairments or reversal of impairments of intangible assets, operational restructuring, integration and acquisition costs relating to new acquisitions, investigationimplementation of strategic opportunities and other items, costs relating to certain management incentive plans and other significant items (see Note 7).
iv)Research and development
iii)    Research and development
Expenditure on research activities is recognized in the Consolidated Statement of Profit or Loss as an expense as incurred.
3.18Taxation
3.18    Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognized in the Consolidated Statement of Profit and Loss except to the extent that it relates to items recognized in Other Comprehensive Income or those recognized directly in equity, in which case it is recognized within the Statement of Other Comprehensive Income or Statement of Changes in equity.Equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the financial year end date, and any adjustment to tax payable in respect of previous years. Where tax exposures can be quantified, an accruala provision for uncertain tax positions is made based on the best estimates and management’s judgments. Given the inherent uncertainties in assessing the outcomes of these exposures (which can sometimes be binary in nature), the Company could in future periods experience adjustments to these accruals.
F-21

Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities recognized for financial reporting purposes and the amounts used for taxation purposes on an undiscounted basis. The following temporary differences are not provided for: the initial recognition of goodwill; the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the financial year end date.
A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized.
3.19Segment reporting
3.19    Segment reporting
The Chief Operating Decision Maker (“CODM”) has been determined to be the Chief Executive Officer as he is primarily responsible for the allocation of resources to the segments and the assessment of performance of the segments.
Nomad’s operations are organized into one operating unit, ‘Frozen’"Frozen", which comprises all the brands, as well as the factories, private label business units and certain corporate overheads. The CODM primarily uses (“Adjusted“Adjusted EBITDA”), disclosed in Note 5, as the key measure of the segment’s results. Adjusted EBITDA is EBITDA adjusted to exclude, (whenwhen they occur)occur, the impacts of exited markets, chart of account (“CoA”) alignmentsacquisition purchase price adjustments and exceptional items such as restructuring charges, goodwill and intangible asset impairment charges and other unusual or non-recurring items. In addition, we exclude other adjustments such as the impact of share based payment charges, charges relatingexpenses and related employer payroll taxes, and non-operating M&A related costs, because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to the Founder Preferred Shares Annualour underlying operating performance.


Dividend Amount, charges relating to the redemption of warrants and other unusual or non-recurring items.
EBITDA, disclosed in Note 5, is defined as profit/(loss) for the period before taxation, net financing costs, depreciation and amortization.
3.203.20    Onerous contracts provisions
Where the costs of fulfilling a contract exceed the economic benefits that the Company expects to receive from it, an onerous contract provision is recognized for the net unavoidable costs. In estimating the net unavoidable costs, management estimate foreseeable income that may be received and offset this against the minimum future cash outflows from fulfilling the contract. All cash flows are discounted at an appropriate discount rate.
3.21Unfavorable contracts
Unfavorable contracts recognized from business combinations are classified as a liability, discounted and recognized over the term of the underlying contract as a reduction in the associated expense.provisions
3.22IFRSs not yet adopted
At the date of authorization of these financial statements, the following Standards and Interpretations, which have not been applied in the financial statements, were in issue but not yet effective:
IFRS 9 ‘Financial Instruments’ addresses the classification, measurement and recognition of financial assets and financial liabilities and replaces IAS 39. The standard reduces the complexity of the current rules on financial instruments as mandated in IAS 39. IFRS 9 replaces the ‘incurred loss model’ in IAS 39 with an ‘expected credit loss’ model. The standard also introduces new presentation and disclosure requirements. The standard also introduces new hedge accounting rules although the adoption of these is optional so that the hedge accounting rules under IAS 39 may continue to be applied. The effective date for the adoption of IFRS 9 is annual periods beginning on or after 1 January 2018. Except for hedge accounting, retrospective application is required but providing comparative information is not compulsory. For hedge accounting, the requirements are generally applied prospectively, with some limited exceptions.
The Group has completed its assessment of the effects of transition to IFRS 9. The impacts that have been identified on adopting IFRS 9 on the Group are detailed below.
–Classification and measurement: IFRS 9 establishes a principle based approach for classification of financial assets based on cash flow characteristics of the asset and the business model in which an asset is held as well as changes to the measurement of financial liabilities held at FVTPL. The change in classification does not affect the accounting recognition of financial assets presented in these financial statements and the impact of the change in measurement on financial liabilities as at December 31, 2017 is €nil.
–Impairment: The significant financial assets held that are affected by the impairment losses recognised under IFRS 9 are trade receivables, for which the gross balance as at December 31, 2017 is €289.0 million with an impairment provision of €5.8 million. Management has performed an assessment of the impairment of trade receivables under IFRS 9 using Expected Credit Losses derived from actual credit losses experienced in the


past. Based on this assessment, the impairment provision was found to be comparable to the existing provision, with no material difference.
–Hedge accounting: The Group has elected not to apply IFRS 9 for hedge accounting.
IFRS 15 ‘Revenue from contracts with customers’ outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services.
Management has assessed the effects of applying the new standard on the Company’s financial statements and has identified that the presentation of contract assets and contract liabilities will need to be changed. Specifically, adoption of IFRS 15 will result in additional disclosures in our footnotes around discounts and trade marketing expenses as of 1 January 2018 in relation to trade terms which are currently included in other balance sheet line items.
The Company has quantified that there is no material impact on revenue recognition by applying this standard. The Company will apply the standard using the modified retrospective approach which means that any cumulative impact of the adoption identified would have been be recognized in retained earnings as of January 1, 2018 and that comparatives will not be restated.
IFRS 16 ‘Leases’ sets out the principles for the recognition, measurement, presentation and disclosure of leases and replaces IAS 17 ‘Leases’. The standard introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The Standard also contains enhanced disclosure requirements for lessees. This IFRS will become effective for accounting periods starting on January 1, 2019 with early application permitted for companies applying IFRS 15 ‘Revenue from Contracts with Customers’.
The Company is still assessing the full impact of the new IFRS 16 Standard. However, it is expected that there will be an increase in assets and liabilities as a result of the adoption of the new standard.    
4)Critical accounting estimates and judgments
The preparation of financial statements in accordance with IFRS requires the use of estimates. It also requires management to exercise judgment in applying the accounting policies. The key areas involving a higher degree of judgment or complexity, or areas where assumptions are significant to the consolidated financial statements are highlighted under the relevant note. Critical accounting estimates and judgments are listed below:
a)Discounts and trade marketing expense
Discounts given by the Company include rebates, price reductions and incentives given to customers, promotional couponing and trade communication costs. Each customer has a unique agreement that is governed by a combination of observable and unobservable performance conditions.


At each financial year end date any discount incurred but not yet invoiced is estimated, based on historical trends and rebate contracts with customers, and accrued as ‘trade terms’. The balance of the reduction in trade receivables for trade terms as of December 31, 2017 is disclosed in Note 18.
In certain cases the estimate for discounts requires the use of forecast information for future trading periods and so there arises a degree of estimation uncertainty. These estimates are sensitive to variances between actual results and forecasts. The current accruals reflect the Company’s best estimate of these forecasts.
Trade marketing expense is comprised of amounts paid to retailers for programs designed to promote Company products. The ultimate costs of these programs can depend upon retailer performance and is the subject of significant management estimates. The Company records as a reduction in revenue, the estimated ultimate cost of the program in the period during which the program occurs and is based upon the programs offered, timing of those offers, estimated retailer performance based on history, management’s experience and current economic trends.
b)Business combinations
The Company is required to recognize separately, at the acquisition date, the identifiable assets, liabilities and contingent liabilities acquired or assumed in a business combination at their fair values. This involves judgment over whether intangible assets can be separately identified as well as an estimate of fair value of all assets and liabilities acquired. Such estimates are based on valuation techniques, which require considerable judgment in forecasting future cash flows and developing other assumptions. These estimates are based on information available on the acquisition date and assumptions that have been deemed reasonable by management. The following judgments, estimates and assumptions can materially affect our financial position and profit:
The fair value of intangible and tangible assets that are subject to depreciation or amortization in future periods.
Future changes to the assumptions used in estimating the value of assets and liabilities may result in additional expenses or income.
c)Carrying value of goodwill and brands
Determining whether goodwill and brands are impaired requires an estimation of the value in use of the cash generating unit to which goodwill and brands have been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value. Details of impairment reviews are provided in Note 13.
d)Employee benefit obligation
The Group operates a number of defined benefit pension schemes and post-employment benefit schemes which are valued by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods. Each Scheme has an actuarial valuation performed and is dependent on a series of assumptions See Note 23 for details of these assumptions and a sensitivity analysis on material assumptions.
e)Uncertain tax positions
Where tax exposures can be quantified, an accrual for uncertain tax positions is made based on best estimates and management’s judgments with regard to the amounts expected to be paid to the relevant tax authority. Given the inherent uncertainties in assessing the outcomes of these exposures (which can sometimes be binary in nature), the Company could in future periods experience adjustments to these accruals. The factors considered include the progress of discussions with the tax authorities and the level of documentary support for historical positions taken by previous owners.


f)Onerous contracts
Where the costs of fulfilling a contract exceed the economic benefits that the Company expects to receive from it, an onerous contract provision is recognized for the net unavoidable costs. In estimating the net unavoidable costs, management estimate foreseeable income that may be received and offset this against the minimum future cash outflows from fulfilling the contract. All cash flows are discounted at an appropriate discount rate.
Estimating future income3.21    IFRSs not yet adopted
At the date of authorization of these financial statements, except as disclosed in Note 2, there are no Standards and Interpretations relevant to the Company which are in issue but not yet effective.
4)     Critical accounting estimates and judgments
The preparation of financial statements in accordance with IFRS requires the use of judgment in applying the accounting policies and estimation that affect the reported amounts of assets and liabilities and results. Actual results could differ from those estimates and the financial statements will be impacted by key judgments taken.
Key Judgments
Judgments are made in the process of applying accounting policies. Those judgments which are considered key are listed below.
F-22

a)        Business Combinations
Business combinations are recognized using the acquisition method. At the acquisition date, the Company is required to recognize separately the identifiable assets, liabilities and contingent liabilities acquired or assumed in a business combination at their fair values. This involves judgment over whether intangible assets can be separately identified, the useful economic life of assets and in selecting an appropriate valuation methodology. Furthermore, judgment is applied in allocating business combinations to operating segments, as well as allocating Goodwill to cash generating units. Please refer to Note 14 for details of business combinations impacting the reporting period.
b)        Discounts and trade promotions
Management uses judgment when considering when accruals for discounts and trade promotions can be released. Management makes the judgment based on the principle that accruals are reversed only to the extent that it is highly judgmentalprobable that a significant reversal will not occur.
c)        Uncertain tax positions
Management uses judgment when identifying and determining whether it is appropriate to provide for uncertain tax positions and for how long provisions for uncertain tax positions are retained. Management considers tax laws which are in place in making that assessment determining whether it is appropriate to release.
d)        Cash generating units
When performing goodwill impairment testing, management applies judgment to the allocation of goodwill to cash generating units. Management has determined goodwill is monitored at the operating segment level of “Frozen”. Please refer to Note 13 for further information.
e)        Operating segments
Management applies judgment in determining the Chief Operating Decision Maker (“CODM”), and the nature and extent of the financial information which is reviewed by the CODM. Management has considered how resources are allocated in determining the single reporting and operating segment of “Frozen”. Please refer to Note 5 for further information.
Significant estimates
Information about estimates and assumptions that have significant effects on the amounts reported in the consolidated financial statements are listed below. In forming these estimates, management has taken into account the impact and potential future impact supply chain disruptions, high inflation as well as the ongoing conflict between Ukraine and Russia. Management will continue to assess the impact of future developments in relation to these matters as it relates to estimates, especially around the carrying value of goodwill, brands and other intangibles, as well as on property, plant and equipment.

In particular, management will focus on the impact of a long-term conflict in Ukraine. While we do not have any direct operations or sales in either Russia or Ukraine, these countries are responsible for many commonly used raw materials and resources such as fish, edible oils, wheat and energy. The ongoing conflict and economic sanctions could see considerable reductions in the availability or increase in cost of such raw materials and resources. At this time it is not possible to predict the extent or nature of these impacts on our business although we expect the current conflict to continue for some time.
a)        Discounts and trade promotions
Discounts given by the Company include rebates, price reductions and incentives given to customers, promotional couponing and trade communication costs. Each customer has bespoke agreements that are governed by a combination of observable and unobservable performance conditions.
F-23

Trade promotions comprise of amounts paid to retailers for programs designed to promote Company products and include pricing allowances, merchandising funds and customer coupons, which are offered through various programs to customers and consumers. The ultimate costs of these programs can depend upon retailer performance and is the subject of significant management estimates. The estimated ultimate cost of the program is based upon the programs offered, timing of those offers, estimated retailer performance based on history, management’s experience and current economic trends.
At each financial year end date, any discount or trade promotion incurred but not yet invoiced is estimated and accrued for. In certain cases, the estimate for discounts and trade promotions requires the use of forecast information for future trading periods and therefore a degree of estimation uncertainty exists. These estimates are sensitive to variances between actual results and forecasts. The estimate is based on management’s best estimate. Onerous contractsaccumulated experience.
The accruals are presented as provisions‘trade terms’ and offset against trade receivables due to the same customer, or as trade term payables where there is no receivable to be offset. The balance of the reduction in trade receivables for trade terms as of December 31, 2022 is disclosed in Note 24.18 and the balance classified as a trade term payable is disclosed in Note 22.
g)Fair value of derivative financial instruments.
b)        Business combinations
The Company is required to recognize separately, at the acquisition date, the identifiable assets, liabilities and contingent liabilities acquired or assumed in a business combination at their fair values. This involves an estimate of fair value of all assets and liabilities acquired. Such estimates are based on valuation techniques, which require considerable estimation in forecasting future cash flows and developing other assumptions. These estimates are based on information available on the acquisition date and assumptions that have been deemed reasonable by management. The following estimates and assumptions can materially affect our financial position and profit:
•The fair value and expected useful economic life of acquired intangible and tangible assets that are subject to depreciation or amortization in future periods.
•Future changes to the assumptions over forecast future profitability used in estimating the value of intangible assets and goodwill may result in additional expenses or income.
•Future changes to the assumptions used in estimating the value of uncertain tax positions may result in additional expenses or income.
Please refer to Note 14 for details of business combinations in the period.
c)        Employee benefit obligation
The Group operates a number of defined benefit pension schemes and post-employment benefit schemes which are valued by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods. Each scheme has an actuarial valuation performed by a specialist third party and is dependent on a series of assumptions which are estimated by management. See Note 23 for details of these assumptions and a sensitivity analysis on material assumptions.
d)        Provisions for uncertain tax positions
Where tax exposures can be quantified, a provision for uncertain tax positions is made based on management's estimates which include judgments with regard to the amounts expected to be paid to the relevant tax authority. Given the inherent uncertainties in assessing the outcomes of these exposures, the Company could in future periods experience adjustments to these accruals. The factors considered in estimating the provision include the progress of discussions with the tax authorities, the complexity of respective tax legislation, valuations of assets for tax purposes and the level of documentary support for historical positions taken by previous owners. The provisions are made on the basis of a weighted average of potential outcomes.
F-24

f)        Fair value of derivative financial instruments.
Note 34 includes details of the fair value of the derivative instruments that the Company holds at each balance sheet period. Management has estimated the fair value of these instruments by using valuations based on discounted cash flow calculations. These inputs may be readily observable, market corroborated, or generally unobservable inputs and are further discussed in Note 34.
h)Share-based payments
At the endOther estimates
a)        Carrying value of each reporting period, the Company, in estimating its share-based payment charge, assessesgoodwill and revises its estimates of the number of interests that are expected to vestindefinite life brands
The Company's goodwill and indefinite life brand values have been allocated based on the non-market vesting conditions. Note 8b contains detailsenterprise value at acquisition of theseeach cash generating unit. Goodwill is monitored at an operating segment level for which the Company has one reporting and operating segment. Determining whether goodwill and indefinite life brands are impaired requires an estimation of the value in use. The review is performed using a discounted cash flow model to calculate the value in use of the Frozen segment. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value. This requires us to make assumptions and estimates regarding historical information, future plans and external sources. Future cash flows for the purposes of the valuation model used.value in use calculation are taken from approved budgets. Details of impairment reviews including disclosures covering sensitivities are provided in Note 13.
5)Segment reporting
5)    Segment reporting
Nomad has one reporting and operating segment, ‘Frozen’"Frozen", reflected in the segment presentation below for the periods presented. Historical financial informationThe CODM primarily uses “Adjusted EBITDA”, disclosed in Note 3.19, as the key measure of the predecessor has been re-presented as if it was one single operating segment for comparative purposes.segment’s results, which is considered non-IFRS financial information.
Segment Adjusted EBITDA
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
Note€m€m€m
Profit for the year249.8 181.0 225.1 
Taxation71.2 55.7 70.4 
Net financing costs54.4 106.0 63.7 
Depreciation and amortization88.6 71.6 67.6 
Acquisition purchase price adjustments— 8.4 — 
Exceptional items748.7 45.3 20.6 
Other add-backs11.7 18.7 19.4 
Adjusted EBITDA524.4 486.7 466.8 
  Successor Successor Successor Successor  Predecessor
  Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 Note€m €m €m €m  €m
Profit/(loss) for the period 136.5
 36.4
 (337.3) (167.5)  (128.0)
Taxation 32.0
 39.6
 (12.3) —
  40.9
Net financing costs/(income) 74.4
 62.1
 35.5
 (0.1)  115.7
Depreciation1235.9
 43.3
 20.3
 —
  11.3
Amortization136.5
 7.8
 1.5
 —
  1.2
EBITDA 285.3
 189.2
 (292.3) (167.6)  41.1
Net purchase-price adjustment-inventory step up —
 —
 37.0
 —
  —
Net purchase-price adjustment for cash flow hedge accounting —
 —
 4.9
 —
  —
Charge related to Founder Preferred Shares Annual Dividend Amount27—
 —
 349.0
 165.8
  —
(Credit)/charge relating to Warrant Redemption Liability25—
 —
 (0.4) 0.4
  —
Exceptional items737.2
 134.5
 58.1
 0.7
  84.3
Other add-backs 5.6
 1.2
 —
 —
  —
Adjusted EBITDA 328.1
 324.9
 156.3
 (0.7)  125.4
Unallocated corporate costs —
 —
 2.5
 0.7
  —
Frozen Adjusted EBITDA 328.1
 324.9
 158.8
 —
  125.4



Acquisition purchase price adjustments relate to the reversal of the non-cash increase applied to inventory acquired in business combinations to value it at fair value as opposed to cost.
Other add-backs include the elimination of share-based payment chargesexpense and related employer payroll expense of €2.6€8.6 million (2016: €1.2(2021: €5.8 million, 2020: €12.1 million) and elimination of non-operating M&A related investigation costs, professional fees and transaction costs and purchase accounting related valuations of €3.0 million.€3.1 million (2021: €12.9 million, 2020: €7.3 million). We exclude these costs because we do not believe they are indicative of our normal operating costs, can vary significantly in amount and frequency, and are unrelated to our underlying operating performance.
No information on segment assets or liabilities is presented to the CODM.
Product information
Management considers the products it sells belong to one category, being ‘Frozen’"Frozen".
F-25

Geographical information
External revenue by geography
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
€m€m€m
United Kingdom806.2 758.3 747.3 
Italy408.5 417.9 426.3 
Germany385.4 396.3 393.2 
France192.4 188.6 203.8 
Sweden149.4 148.1 158.7 
Norway126.6 121.7 115.6 
Croatia (1)122.7 16.1 — 
Austria122.0 129.3 127.9 
Serbia (1)108.2 13.6 — 
Switzerland (2)80.1 74.4 — 
Spain78.6 75.1 82.6 
Rest of Europe359.6 267.2 260.5 
Total external revenue by geography2,939.7 2,606.6 2,515.9 
 Successor Successor Successor Successor  Predecessor
 Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 €m €m €m €m  €m
United Kingdom411.9
 437.5
 288.6
 —
  225.0
Italy371.4
 348.5
 205.2
 —
  169.7
Germany300.3
 267.8
 150.0
 —
  124.2
Sweden208.0
 218.2
 35.5
 —
  —
France170.0
 168.9
 41.0
 —
  —
Norway123.3
 122.6
 19.6
 —
  —
Austria96.7
 92.9
 51.8
 —
  45.0
Spain81.2
 82.6
 13.1
 —
  —
Rest of Europe193.8
 188.7
 89.4
 —
  76.4
Total external revenue by geography1,956.6
 1,927.7
 894.2
 —
  640.3
(1) Sales included from acquisition date of September 30, 2021.
(2) Sales included from acquisition date of December 31, 2020.

Non-current assets by geography
December 31, 2022December 31, 2021
Successor Successor€m€m
December 31, 2017 December 31, 2016
€m €m
United KingdomUnited Kingdom140.1 139.6 
Germany126.4
 118.0
Germany139.0 140.0 
United Kingdom94.8
 77.5
Italy55.0
 59.1
Italy63.4 64.8 
SerbiaSerbia50.3 48.5 
CroatiaCroatia41.8 38.5 
IrelandIreland35.4 34.3 
NorwayNorway28.6 31.0 
Sweden26.5
 44.6
Sweden22.1 29.8 
France16.7
 18.4
Norway15.7
 13.3
Rest of Europe20.2
 6.1
Rest of Europe70.4 72.3 
Total non-current assets by geography355.3
 337.0
Total non-current assets by geography591.1 598.8 
Non-current assets exclude deferred tax assets, goodwill and brands which are not bound to one geographical area.
F-26



6)    Operating profit


6)Operating profit/(loss)
Operating profit /(loss) is stated after charging:
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
Note€m€m€m
Staff costs8386.1 340.6 340.2 
Depreciation of property, plant and equipment1279.8 63.4 59.8 
Impairment of intangible assets135.8 1.7 — 
Amortization of intangible assets138.8 8.2 7.8 
Expense relating to low value and short-term leases9.9 6.1 3.0 
Exchange losses/(gains)38.3 27.0 (2.8)
Research & development expenditure19.3 19.2 17.6 
Inventories recognized as an expense within cost of goods sold1,949.8 1,694.3 1,627.9 

7)    Exceptional items
   Successor Successor Successor Successor  Predecessor
   Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 Note €m €m €m €m  €m
Staff costs8 257.4
 264.5
 160.2
 —
  88.8
Depreciation of property, plant and equipment12 35.9
 43.3
 20.3
 —
  11.3
Impairment of property, plant and equipment12 0.3
 1.4
 3.2
 —
  —
Impairment of goodwill and brands13 —
 —
 —
 —
  55.0
Amortization of software and brands13 6.5
 7.8
 1.5
 —
  1.2
Operating lease charges  15.0
 14.6
 4.2
 —
  3.2
Exchange (gains)/losses  (1.2) (3.3) 5.2
 88.9
  (9.0)
Fair value loss on financial assets at fair value through profit and loss  —
 —
 4.9
 —
  —
Research & development expenditure  15.4
 13.3
 12.1
 —
  7.2
Inventories recognized as an expense within cost of goods sold  1,273.3
 1,282.6
 608.9
 —
  389.3
7)Exceptional items
Exceptional items are made up as follows:
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
€m€m€m
Supply chain reconfiguration (1)— — (12.5)
Distribution network integration (2)2.2 — — 
Fortenova Acquisition integration costs (3)9.5 3.5 — 
Findus Switzerland integration costs (4)8.2 6.2 0.3 
Brexit (5)— 5.3 1.6 
Business Transformation program (6)37.0 18.8 2.3 
Information Technology Transformation program (7)4.4 4.2 — 
Goodfella's Pizza & Aunt Bessie's integration costs (8)— — 4.0 
Factory optimization (9)3.5 4.9 10.0 
Settlement of legacy matters (10)(28.9)(2.6)(2.9)
Impairment of customer relationships (11)5.8 — — 
Release of indemnification assets (12)7.0 5.0 17.8 
Total exceptional items48.7 45.3 20.6 
 Successor Successor Successor Successor  Predecessor
 Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 €m €m €m €m  €m
Investigation of strategic opportunities (1)18.8
 7.0
 7.7
 —
  1.3
Supply chain reconfiguration (2)14.0
 84.3
 —
 —
  —
Findus Group integration costs (3)15.1
 29.6
 4.5
 —
  —
Costs related to transactions (4)3.2
 4.8
 34.1
 0.7
  3.8
Costs related to long-term management incentive plans (5)—
 1.9
 3.5
 —
  22.9
Other restructuring costs (6)—
 (1.0) 8.9
 —
  —
Cisterna fire net (income)/costs (7)—
 (4.3) (2.5) —
  1.3
Impairment of intangible assets (8)—
 —
 —
 —
  55.0
Settlement of legacy matters (9)(5.6) 1.8
 1.9
 —
  —
Remeasurement of indemnification assets (10)(8.3) 10.4
 —
 —
  —
Total exceptional items37.2
 134.5
 58.1
 0.7
  84.3
We do not consider these items to be indicative of our ongoing operating performance.


(1)Investigation of strategic opportunities
Successor
The Company incurred charges of €18.8 millionin the year ended December 31, 2017 in relation to the implementation of the Nomad strategic vision, which primarily relates to changes to the organizational structure to align behind core products and implement net revenue management initiatives (2016: €7.0 million, 2015: €7.7 million). The prior periods exclude costs associated with legacy matters which are now allocated to (9), which has reduced the 2016 charge from €8.8 million to €7.0 million and the 2015 charge from €9.6 million to €7.7 million.
Predecessor
For the five months ended May 31, 2015 the Iglo Group incurred charges of €1.3 millionin relation to a strategic review of the Iglo Group’s operations and other items. The charges include costs incurred as a result of the decision to cease marketing its products in Romania, Slovakia and Turkey on November 27, 2014, amounts in relation to tax matters from previous accounting periods and costs related to the implementation of the Better Meals Together strategy.
(2)Supply chain reconfiguration
Successor(1)Supply chain reconfiguration
Supply chain reconfiguration relates to large scale restructuring projects undertaken by the Company to optimize the supply chain. A charge of €14.0 million has been incurred in relation to restructuring activities for the year ended December 31, 2017, which relates toassociated with the closure of the Bjuv manufacturing facility.facility in Sweden which ceased production in 2017.
A chargeIn 2020, the Company signed an agreement to end its leasehold of €84.3 milliona cold store in Sweden in 2021, which was originally due to expire in 2040. The cold store will continue to be used by the Company under a service contract once the lease has come to an end. The agreement resulted in a significant modification of a right-of-use asset and reduction in lease liabilities. The carrying value of the right-of-use asset had previously been impaired such that its value was significantly lower than that of the liabilities extinguished. Consequently, the Company recognized a gain from the transaction. As part of the transaction, the Company became liable to fulfill certain severance arrangements in 2021 which were provided for and have since been completed, the cost of recognizing the provision offset a portion of the income from the modification of the lease.
F-27

(2)Distribution network integration
In 2022, the Company restructured its sales operations in northern Italy, replacing direct sales to thousands of customers with a streamlined distributor network. The program is scheduled to be completed in 2023 and consists of expenses relating to restructuring and new systems.
(3)Fortenova Acquisition integration costs
As disclosed in Note 14, the Company completed the acquisition of the Fortenova Group’s Frozen Food Business Group on September 30, 2021, following which the Company began a three year integration project. Integration expenses incurred inrelate to external consultancy costs, organizational structure alignment to Nomad design, systems configuration and roll-out of our controls environment to the year endedacquired business.
(4)Findus Switzerland integration costs
The Company completed the acquisition of Findus Switzerland on December 31, 2016,2020, following which the Company commenced an integration project which completed in 2022. Integration expenses incurred related to external consultancy costs, organizational structure alignment to Nomad design and roll-out of the Nomad ERP system.
(5)Brexit
As part of the process of the United Kingdom exiting the European Union, commonly referred to as Brexit, the Company has incurred expenses to prepare for, and respond to, changes impacting our supply chain. Whilst an agreement with the EU was reached on December 24, 2020, border control processes remain in a period of transition. Expenses in 2021 relate to project costs and the write-off of system development costs no longer required due to changes in regulations and the Company's approach to handling Brexit-related logistic issues.
(6)Business transformation program
In 2020, the Company launched the first phase of a multi-year, enterprise-wide transformation and optimization program. Over the next few years, additional transformation phases will be implemented. The program aims to standardize, simplify and automate end-to-end business processes. This will enable key decision making and analytical capability, building a platform and organization to support future growth and provide better value for shareholders. Execution of the business transformation program will include the evaluation and implementation of a new ERP system.

Expenses incurred to date consist of restructuring and transformational project costs, including business technology transformation initiative costs and related professional fees.
(7)Information Technology Transformation program
In 2021, the Company launched a program to transform the Information Technology (“IT”) operating model, specifically to modernize the end-to-end technology estate to support current and future complex and evolving business needs driven by acquisitions and organic growth. Among the many changes made, the program moved our operating model to a cloud-hosted solution, which €54.0 million was incurred in relation to restructuring activities, primarily relatingbetter deploys new services to the closurebusiness and end user, including application management, supporting a diverse workforce across multiple locations and languages, as well as deploying artificial Intelligence assisted tools. Other key components of the Bjuv manufacturing facility. A further €30.3 million was incurred for an onerous contract that relates to the renegotiation ofprogram included the Company’s agreements withcyber security services to adapt to rapidly changing threats and a third party forchange of IT service partners to enable one-off renovation and uplift of capabilities across the use of a warehouse facility.business. The program is due to complete in 2023.
(3)Findus Group integration costs
Successor(8)Goodfella's Pizza & Aunt Bessie's integration costs
Following the acquisition of the Findus Group on November 2, 2015,Goodfella’s pizza business in April 2018 and the Aunt Bessie's business in July 2018, the Company completed an integration project which finished in 2020.
F-28

(9)Factory optimization
In 2018, the Company initiated a substantial integration project. Coststhree-year factory optimization program. The focus of €15.1the program was to develop a new suite of standard manufacturing and supply chain processes, that provides a single network of optimized factories. The program is expected to provide a number of benefits, including an optimized supply chain infrastructure, benefits derived from the implementation of a standardized global manufacturing and planning processes, and an increased level of sustainable performance improvement. Due to delays in delivering the program across the Nomad manufacturing portfolio due to various government lockdowns and travel bans, the project was extended for an additional year through to its completion in 2022.
(10)Settlement of legacy matters

In 2022, a net income of €27.9 million havehas been incurredrecognized as the Company received favorable rulings on a series of registration tax claims in relation to an acquisition in 2010, prior to the formation of the Company in 2014. As a result, the Company received a refund of the payments made in 2013 and 2018 in addition to interest. Income has been recognized net of associated professional fees.

A further income of €1.0 million has been recognized associated with the release of acquired provisions relating to periods prior to acquisition by the Company (year ended December 31, 2021: net income of €2.6 million, year ended December 31, 2017. For the year ended December 31, 2016 costs2020: net income of €29.6 million were incurred. For the nine months ended December 31, 2015 costs€2.9 million).
(11)Impairment of €4.5 million were incurred. Costs incurred in 2017 primarily relate to the rolloutcustomer relationships
An impairment of the Nomad ERP system.
(4)Costs related to transactions
Successor
The charge for the year ended December 31, 2017, relates to enhanced control compliance procedures in territories. For the year ended December 31, 2016 and the nine months ended December 31, 2015, costs related to transactions primarily relates to the acquisition of the Iglo Group. For the year ended March 31, 2015 the Iglo Group incurred a charge of €0.7 million in relation to acquisition and sale transactions.
Predecessor
In 2015, a €3.8 million charge was incurred relating to the payment of registration tax assessed as a result of the CSI (Findus Italy) acquisition. The Iglo Group appealed the rulings and elected to pay the assessed taxes in order to avoid incurring penalties and interest.


(5)Costs related to long-term management incentive plans
Successor
Subsequent to the sale of Iglo and specific to the terms of a Predecessor incentive scheme, management participated in an incentive scheme for which the Company incurred charges €1.9 million in the year ended December 31, 2016 and €3.5 million in the nine months ended December 31, 2015. Refer to Note 8 for more details on the management incentive scheme which ended in May 2016.
Predecessor
The Iglo Acquisition on June 1, 2015 was a triggering event under the main incentive schemes following which the majority of management incentive schemes provisions were paid. The completion of the sale was a triggering event under the cash settled schemes.
A charge of €22.9 million in the five months ended May 31, 2015 represents an accelerated charge to align the cumulative charges recognized to the amount that was paid in June 2015 of €19.7 million. In addition, as a result of the terms of the sale, vesting of the equity settled share based payment scheme was accelerated. The non-cash charge of €3.2 million in the five months ended May 31, 2015 reflects the vesting of non-forfeited interests in this scheme. There were no associated exercises made in relation to the scheme due to the fact that market performance conditions were not met.
(6)Other restructuring costs
Successor
A credit of €1.0 million wasintangible fixed assets expense has been recognized in the year ended December 31, 2016 related2022 relating to our food service customer relationships in Sweden.
(12)Release of indemnification assets
The charges for the release of provisions for restructuring activities in the UK and German factories. For the nine months ended December 31, 2015, costs related to restructuring activities in the German, UK and Italian factories were €8.9 million.
(7)Cisterna fire net (income)/costs
Successor
A €4.3 million net income was recognized for the year ended December 31, 2016 in relation to the August 2014 fire insurance claim in the Italian production facility. A €2.5 million net income was recognized for the nine months ended December 31, 2015.
Predecessor
In the five months ended May 31, 2015 , the Iglo Group incurred charges of €1.3 million in relation to a fire in August 2014 in the Italian production facility which produces Findus branded stock for sale in Italy. The charges include the cost of stock damaged by the fire, the impairment of property as well as ongoing incremental costs incurred as a result of the disruption to operations. The Company has insurance policies in place covering the stock, property and loss of earnings for which claims are almost complete. The proceeds of these claims could not be recognized until the recoverable amount was judged to be virtually certain. No further costs are expected to arise from this incident and any future income from insurance claims is expected to be insignificant.
(8)Impairment of intangible assets
Predecessor
As a result of circumstances identified during the five months ended May 31, 2015 it was noted that the recoverable amount of the Italian intangible assets held prior to the Iglo Acquisition were lower than the values previously carried in the Iglo accounts. Therefore the carrying values were adjusted and an impairment charge of €55.0 million was recognized in the five months ended May 31, 2015.


(9)Settlement of legacy matters
Successor

A net income of €5.6 million has been recognized in liabilities relating to periods prior to acquisition of the Findus and Iglo businesses by the Company (charge of €1.8 million in the year ended December 31, 2016, charge of €1.9 million in the nine months ended December 31, 2015). These were previously classified within Investigation and implementation of strategic opportunities and other items and have been reclassified into this line for all successor periods presented.

The credit includes a charge of €3.9 million associated with settlements of tax audits, offset by gains of €4.2 million from the reassessment of sales tax provisions, €1.2 million from the reassessment of interest on sales tax provisions, a €2.8 million gain on a legacy pension plan in Norway and a €1.3 million gain on disposal of a non-operational factory.
(10)Remeasurement of indemnification assets
Successor
Remeasurement of the indemnification assets relates to the movement in valuerelease of shares held in escrow as part of the consideration onassociated with the acquisition of the Findus Group as well as the release of indemnification assets associated with the acquisition of the Iglo Groupin 2015, as discussed in Note 19.
Tax impact of exceptional items
The tax impact of the exceptional items amounts to a credit of €13.8€5.8 million in the year ended December 31, 20172022 (year ended December 31, 2016: credit of €8.82021: €8.4 million, nine monthsyear ended December 31, 2015: credit of €6.1 million, year ended March 31, 2015: €nil, five months ended May 31, 2015: credit of €22.02020: €3.5 million).
Cash flow impact of exceptional items
Included in the Consolidated Statements of Cash Flows for the year ended December 31, 20172022 is €99.5€40.8 million (year ended December 31, 2016: €49.22021: €48.8 million, nine monthsyear ended December 31, 2015: €91.6 million, year ended March 31, 2015: €0.7 million, 5 months ended May 31, 2015: €6.22020: €12.1 million) of net cash outflows relating to exceptional items. This includes cash flows related to the above items as well as the cash impact of the settlement of provisions brought forward from previous accounting periods.

8)    Payroll costs, share based payments and management incentive schemes
8)Payroll costs, share based payments and management incentive schemes
(a)Payroll costs
(a)Payroll costs
The average number of persons employed by the Company (excluding non-Executive Directors) is analyzed and set out below:
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
Production4,189 3,310 3,043 
Administration, distribution & sales3,892 2,193 1,647 
Total number of employees8,081 5,503 4,690 
 Successor Successor Successor Successor  Predecessor
 Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
Production2,285
 2,627
 2,605
 —
  1,635
Administration, distribution & sales1,572
 1,571
 1,767
 —
  1,047
Total number of employees3,857
 4,198
 4,372
 —
  2,682
ForThe increase in the average number of employees in the table above for the year ended MarchDecember 31, 2015,2022 compared with the Successor did not have any operations oryear ended December 31, 2021 is primarily due to the full year impact of including the Fortenova Acquisition which was acquired on September 30, 2021.
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The increase in the average number of employees and accordingly no compensation or benefits were paid.


in the year ended December 31, 2021 compared with the year ended December 31, 2020 is primarily due to the Fortenova Acquisition as set out above as well as the acquisition of Findus Switzerland on December 31, 2020.
The table below discloses the Company’s aggregate payroll costs of these persons. Payroll costs exclude long term management incentive scheme and share based payment costs, but includes bonus costs, in particular those associated with a non-cash bonus for key management employees, whereby 13,104 Ordinary shares of the Company were issued to the recipients’ on November 27, 2015.costs.
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
€m€m€m
Wages and salaries293.6 266.4 276.4 
Social security costs72.9 56.1 49.2 
Other pension costs19.6 18.1 14.6 
Total payroll costs386.1 340.6 340.2 
 Successor Successor Successor Successor  Predecessor
 Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 €m €m €m €m  €m
Wages and salaries200.8
 205.4
 126.7
 —
  72.1
Social security costs42.0
 45.9
 27.5
 —
  12.5
Other pension costs14.6
 13.2
 6.0
 —
  4.2
Total payroll costs257.4
 264.5
 160.2
 —
  88.8
(b)Share based payments

(b)Share based payments
Successor
During 2015, the Company established aThe Company's discretionary share award scheme, the LTIP, which enables the Company’s Compensation Committee to make grants (“Awards”) in the form of rights over ordinary shares (“Awards”), to any Director, Non-Executive Director or employee of the Company. However, it is the Committee’s current intention that Awards be granted only to Directors and senior management also serving as a director, whilst recognizing a separate annual Restricted Stock Award for Non-Executive Directors.
All Awards are to be settled by physical delivery of shares.
Non-Executive Director Restricted Share Awards
In accordance with the Board approved independent Non-Executive Director compensation guidelines, each independent Non-Executive Director is grantedentitled to a grant of $100,000 of restricted shares annually on the date of the annual general meeting, valued at the closing market price for such shares on this date. The restricted shares vest on the earlier to occur of the date of the Company’s annual meeting of shareholders or thirteen months from the date of grant.grant or the date of the Company’s next annual meeting of shareholders.

On June 17, 2020 after the Company's annual general meeting of shareholders, the then current Non-Executive Directors were granted 32,140 restricted stock awards at a share price of $21.78. The Non-Executive Directors restricted share awards granted at a share price of $11.50 on December 7, 2015,identified above vested on June 16, 201630, 2021 and 24,406 were issued in July 2016 at a share price of $8.98.issued. Of the total 34,78032,140 number of shares vesting, 11,568 shares were held back from issue by the Company as settlement towards personal tax liabilities arising on the vested shares.
The Non-Executive Directors restricted share awards granted on June 16, 2016, which consisted of 55,680 shares at a share price of $8.98, vested on June 19, 2017 and were issued at a share price of $14.38, resulting in a €0.3 million increase in the share based compensation reserve. Of the total 55,680 number of shares vesting, 9,3847,734 shares were held back from issue by the Company as settlement towards personal tax liabilities arising on the vested shares.
On June 19, 2017,30, 2021, after the Company's annual general meeting of shareholders, the then current Non-Executive Directors were granted 41,72424,759 restricted share award at a share price of $28.27. The Non-Executive Directors restricted share awards identified above vested on July 1, 2022 and 13,817 were issued. Of the total 24,759 number of shares vesting, 3,537 shares have not yet been issued and 7,405 shares were held back from issue by the Company as settlement towards personal tax liabilities arising on the vested shares.
On July 1, 2022, after the Company's annual general meeting of shareholders, the then current Non-Executive Directors were granted 29,676 restricted stock awards at a share price of $14.38. On August 22, 2017, two new Non-Executive Directors were granted a pro-rata 11,774 restricted share awards at the same share price and vesting conditions as the previous grant.$20.22.
The total charge for Non-Executive Director grants within the Statement of Consolidated Profit or Loss for the year ended December 31, 20172022 for stock compensation awards was €0.8€0.6 million (year ended December 31, 2016: €0.62021: €0.8 million; nine monthsyear ended December 31, 2015: €0.12020: €0.7 million).

F-30


Director and Senior Management Share Awards
As part of its long term incentive initiatives, the Company has issued 4,927,000 restrictedoutstanding awards over 2,699,157 ordinary shares granted to thecertain members of its management team (the “Management Share Awards”). 3,837,000 shares (net of 770,000 forfeitures in the period) are currently allocated for the January 1, “2016” grant and a further 1,090,000 shares (including 485,000 new awards granted in the period) have been allocated for the January 1, “2017” grant. Relevant to each grant, half as of the awards are contingent upon achieving a benchmark marketfollowing award dates:

 January 1, 2018 AwardJanuary 1, 2019 AwardJanuary 1, 2020 AwardJanuary 1, 2021 AwardJanuary 1, 2022 AwardOther AwardsTotal
Number of awards outstanding at January 1, 2022431,790 152,695 645,093 787,277 — — 2,016,855 
New awards granted in the period— — — — 964,518 176,000 1,140,518 
Awards vested and issued in the period(237,800)— — — — — (237,800)
Forfeitures in the period— — (46,920)(103,728)(69,768)— (220,416)
Number of awards outstanding at December 31, 2022193,990 152,695 598,173 683,549 894,750 176,000 2,699,157 

The 2018 award has vesting conditions based on cumulative EBITDA performance over four years and Company share price performance over two years to five years. During 2021, the Compensation Committee of the Board of Directors amended the non-market condition targets for this award due to recent acquisitions, which did not increase its incremental fair value. The share price and the other half of the awards will vest provided one of a range of cumulative EBITDA performance targets is met over a four year period. Ifconditions for the 2018 award are weighted 50% each per performance target.
•For the 2018 award, for the share price benchmark is met,target, the shares for this portion ofinitial two-year period was through to January 1, 2020 and the awards will vest 50% over a two year period and 50% over a four year period. For the 2016 grant, the two yearsubsequent three-year period is through to January 1, 20182023.
•For the four-year cumulative EBITDA Performance Condition vested on January 1, 2022.
For the 2019, 2020, 2021 and 2022 awards, those grants have vesting conditions based on cumulative EBITDA performance, cumulative Net Sales and Company share price performance over three years. During 2021, the Compensation Committee of the Board of Directors amended the non-market condition targets for these awards due to recent acquisitions, which did not increase their incremental fair value. In addition, the 2020 award had a holding period of one-year that has been removed from the vesting period. The 2021 award was issued late in 2021 with a performance period starting January 1, 2021.
In September 2019, 173,293 restricted share awards were granted as part of the 2019 Management Share Award. The performance period associated with the award began as of January 1, 2019. The 2019 awards have vesting conditions based on three-year cumulative EBITDA and net sales, and Company share price performance measures. One third of the total share award is assigned to each type of performance measure. All shares are subject to a holding period of an additional year and require that the participants to the scheme are still actively employed during the entire four year period, through toJanuary 1, 2023.
For the 2020, 2021 and 2022 Management Share Awards, the awards will vest upon the Company achieving a range of performance conditions including cumulative EBITDA, cumulative net sales and share price performance measures over a three-year period. The cumulative EBITDA and Cumulative Net Sales tranches of shares are equally weighted, being worth 37.5% of the total award each. The Share Price Tranche is worth 25% of the total award. Specific information on each grant is further included below.
In January 2020, 761,979 restricted share awards were granted as part of the 2020 Management Share Award. The performance period associated with the award began on January 1, 2020. ForAll shares vest, subject to satisfaction of the 2017 grant, the two year period is through toaward conditions, on January 1, 2019 and2023.
F-31

In late 2021, 820,202 restricted share awards were granted as part of the four year2021 Management Share Award. The performance period through toassociated with the award began on January 1, 2021. The other halfAll shares vest, subject to satisfaction of the 2016 and 2017 awards will vestaward conditions, on January 1, 20202024.
In January 2022, 1,140,518 restricted share awards were granted as part of the 2022 Management Share Award and two new restricted share award plans ("Other awards"). The performance period associated with the awards began either on January 1, 2021 respectively provided one2022 or January 1, 2023. All shares vest, subject to satisfaction of a range of cumulative EBITDA performance targets is met over a four year periodaward conditions from January 2025 to January 2026, with the majority of shares vesting January 1, 20162025, subject to December 31, 2019 forcertain Company performance conditions.
In January 2021, 1,041,953 restricted shares granted as part of the 2016 grant andManagement Share Awards vested as a result of the satisfaction of the applicable Share Price Performance Condition (based on a share price of $25.42), resulting in the issuance of 587,633 ordinary shares to participants in the LTIP (net of 454,320 ordinary shares held back from issue by the Company as settlement towards personal tax liabilities arising on the vested ordinary shares).
In January 1, 2017 to December 31, 2020 for2021, 368,154 restricted shares granted as part of the 2017 grant.Management Share Awards vested as a result of the satisfaction of the applicable Share Price Performance Condition (based on a share price of $25.42), resulting in the issuance of 217,228 ordinary shares to participants in the LTIP (net of 150,926 ordinary shares held back from issue by the Company as settlement towards personal tax liabilities arising on the vested ordinary shares).
In February 2021, 451,719 restricted shares granted as part of the 2017 Management Share Awards vested as a result of the satisfaction of the applicable EBITDA Performance Condition (based on a share price of $25.89 at time of vesting), resulting in the issuance of 271,451 ordinary shares to participants in the LTIP (net of 180,268 ordinary shares held back from issue by the Company as settlement towards personal tax liabilities arising on the vested ordinary shares).
In March 2022, 237,800 restricted shares granted as part of the 2018 Management Share Awards vested as a result of the satisfaction of the applicable EBITDA Performance Condition (based on a share price of $25.17 at time of vesting), resulting in the issuance of 137,810 ordinary shares to participants in the LTIP (net of 99,990 ordinary shares held back from issue by the Company as settlement towards personal tax liabilities arising on the vested ordinary shares).
The stock compensation charge reported within the Consolidated Statement of Profit or Loss for the year ended December 31, 20172022 related to the director and senior management planshare awards is €1.8€7.5 million (year ended December 31, 2016: €0.6 million; nine months2021: €4.3 million: year ended December 31, 2015: €nil)2020: €8.3 million).
The Company calculates the cost of the Management Share Awards based upon their fair value using the Monte Carlo Model, which is considered to be the most appropriate methodology considering the restricted shares only vest once the market performance conditions have been satisfied, as well as expected exercise period and the payment of dividends by the Company. Following a revision to the January 1, 2016 award EBITDA Performance Target Conditions and updating for scheme leavers, thesatisfied.
The inputs and assumptions underlying the Monte Carlo models for bothall awards outstanding as of the valuation date are now as follows:
F-32

 January 1, 2016 awardJanuary 1, 2017 award
Grant date price$12.00
$9.57
Exercise price$—
$—
Expected life of restricted share3.02 – 4.00 years
3.11 – 4.00 years
Expected volatility of the share price20.0%23.0%
Dividend yield expected—%—%
Risk free rate1.59%1.83%
Employee exit rate16.0%16.0%
EBITDA Performance Target Condition5.0%-75.0%
5.0%-75.0%
F-33

January 1, 2018 awardJanuary 1, 2019 awardJanuary 1, 2020 awardJanuary 1, 2021 awardJanuary 1, 2022 award *
Grant date price$16.72 $20.15 $22.37 $25.42 $25.39 
Exercise price$— $— $— $— $— 
Expected life of restricted share1.50 - 4.00 years4.00 years4.00 years3.00 years3.00 years
Expected volatility of the share price22.7 %24.0 %24.4 %30.0 %28.0 %
Dividend yield expected— %— %— %— %— %
Risk free rate2.55 %1.33 %1.70 %0.24 %1.15 %
Employee exit rate14.0 %14.0 %27.3 %14.0 %14.0 %
EBITDA Performance Target Condition35.0 %35.0 %35.0 %35.0 %35.0 %
*Note: The table above does not include details on awards that only require continued employment over the vesting period and have only non-company wide specific performance conditions.

The expected volatility of the share price inputs of 20.0% and 23.0%above were estimated by referencing selected quoted companies which are considered to exhibit some degree of comparability with the Company, as the Company has only been listed for approximately two years at the time of the 2017 grant.six years.

Based on the revised assessment in the current periodlatest assessments of fair value and the number of shares expected to vest, the total fair valuevalues in respect of the Restricted Shares as at the January 1, 2016 grant date is $6.3are:

•2018 award - $1.6 million (€5.91.3 million) and $0.6
•2019 award - $1.4 million (€0.61.2 million) as at the January 1, 2017 grant date.

•2020 award - $4.8 million (€4.3 million)

•2021 award - $7.0 million (€5.8 million)
•2022 award - $7.6 million (€6.6 million)
•Other 2022 awards - $2.8 million (€2.4 million)

9)    Directors and Key Management compensation
Share based compensation reserve
€m
Balance as of January 1, 20171.0
Non-Executive Director restricted share awards charge0.8
Directors and Senior Management share awards charge1.8
Vesting of Non-Executive Director restricted shares(0.7)
Balance as of December 31, 20172.9
Initial Options
On April 11, 2014 Lord Myners, Alun Cathcart (resigned February 2016) and Guy Yamen (resigned June 2015), all Non-Executive Directors, were granted options (“Initial Options”) to purchase a maximum of 125,000 Ordinary Shares at an exercise price of $11.50 per ordinary share (subject to such adjustment to the number of Ordinary Shares and/or the exercise price as the Directors consider appropriate in accordance with the terms of the Initial Option Deeds in respect of an issue of Ordinary Shares by way of a dividend or distribution to holders of Ordinary Shares, a subdivision or consolidation or any other variation to the share capital of Nomad, as determined by the Directors).
The awards are now exercisable within a five year period, which commenced on the trading day immediately following the Iglo Group acquisition on June 1, 2015. Nomad has calculated the cost of the Initial Options based upon their fair value and taking into account the vesting period and using the Black-Scholes methodology. The valuation of the Initial Options has been based on the following assumptions:
–market value of Ordinary Shares at the grant date of $10.00;
–an exercise price of $11.50;
–1 year expected time to acquisition;
–probability of acquisition of 61%;
–volatility of 17.03%; and
–a risk free interest rate of 0.84%.
Such securities and awards have been accounted for in accordance with “IFRS 2—Share Based Payment”. Based on the preceding assumptions, the total value for the Initial Options is €0.06 million. There were no forfeitures at the grant date and the expense was recognized over an estimated 2-year period ended on April 1, 2016.
Predecessor
In prior years for the Predecessor, certain employees of the Predecessor were offered the opportunity to participate in one of several Predecessor share schemes through which they could subscribe for shares of the Permira Partnership, the ultimate controlling party of the Predecessor. These schemes were accounted for under IFRS 2 “Share Based Payments” and represented equity settled share based payments.
Due to the sale of the Iglo Group, the vesting of the equity settled share based payment scheme was accelerated. The resulting €3.2 million charge to the Consolidated Statement of Profit or Loss for the five months ended May 31, 2015, reflected the accelerated vesting of non-forfeited interests in the scheme. The plans were equity settled.


(c)Management incentive schemes
Successor
Subsequent to the sale of Iglo and specific to the terms of a Predecessor incentive scheme, €1.9 million was charged to the Consolidated Statement of Profit or Loss during the year ended December 31, 2016. €3.5 million was charged in the nine month period to December 31, 2015. This scheme ended in May 2016.
Predecessor
Certain members of the Predecessor’s management team previously participated in certain incentive schemes. The completion of the sale of the Iglo Group to the Company on June 1, 2015 was a triggering event under the cash settled schemes. The resulting €19.7 million charge to the Consolidated Statement of Profit or Loss for the five months ended May 31, 2015, reflected the acceleration of the charges to align the cumulative charges recognized to the amount that was paid in June 2015.
9)Directors and Key Management compensation
 Successor Successor Successor Successor  Predecessor
 Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 €m €m €m €m  €m
Short-term employee benefits2.0 2.1 1.3 —  1.9
Contributions to money purchase pension plans— — — —  0.2
Share-based payment1.4 0.9 0.1 —  2.2
Long-term incentive scheme— — — —  17.4
Compensation for loss of office0.4 — — —  —
Non-Executive Director fees0.3 0.2 0.1 0.2  —
Total Directors’ and executive officers' compensation4.1 3.2 1.5 0.2  21.7
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
€m€m€m
Short-term employee benefits1.8 2.2 3.9 
Share-based payment expense3.5 2.4 3.5 
Non-Executive Director fees0.3 0.3 0.3 
Total Directors' and executive officers' compensation5.6 4.9 7.7 
All significant management decision making authority is vested within the Board of Directors and the executive team, therefore key management are considered to be the Directors and executive Officers.
In
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
Benefits are accruing to the following number of key management personnel under:
Defined contribution plans2 2 2 
Share based payment schemes2 2 2 
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10)    Finance income and costs
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
€m€m€m
Interest income0.6 0.1 0.7 
Net financing gain recognized on refinancing debt (a)2.3 — — 
Net foreign exchange gains on translation of financial assets and liabilities9.2 — 4.0 
Finance income12.1 0.1 4.7 
Interest and finance charges paid/payable for lease liabilities and financial liabilities not at fair value through profit or loss (b)(79.8)(59.8)(64.0)
Cross-currency interest rate swaps: cash flow hedges, transfer from equity18.8 1.6 5.9 
Net impairment loss on short-term investments— (8.6)— 
Net pension interest costs(2.8)(1.7)(2.7)
Amortization of debt discounts and borrowing costs(2.7)(2.0)(2.0)
Net foreign exchange losses on translation of financial assets and liabilities— (4.0)— 
Net fair value losses on derivatives held at fair value through profit or loss (c)— (13.7)(5.6)
Financing costs incurred in amendment of terms of debt (d)— (17.9)— 
Finance costs(66.5)(106.1)(68.4)
Net finance costs(54.4)(106.0)(63.7)

(a) Net income of €2.3 million has been recognized as a consequence of the year ended December 31, 2017, two executive Officers were accruing benefits under share based payment schemes (year ended December 31, 2016: three).
Predecessor Non-Executive Directors were paid through payroll andrefinancing on November 8, 2022, as disclosed in Note 21. Of this, income of €10.2 million relates to the recognition of deferred gains on cross currency interest rate swaps where the hedged cash flows are included within the table above but were not disclosed separately.
In the predecessor period, there were eight directorsno longer expected to occur. This is offset in respectpart by €2.3 million of whose qualifying services shares were received under long term incentive schemes, including the highest paid director.
 Successor Successor Successor Successor  Predecessor
 Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
Retirement benefits are accruing to the following number of directors under:          
Money purchase schemes2
 1
 1
 —
  4


10)Finance income and costs

   Successor Successor Successor Successor  Predecessor
   Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 Note €m €m €m €m  €m
Interest income  0.2
 5.9
 4.4
 —
  2.0
Gain on derivatives  7.0
 —
 4.3
 —
  —
Net foreign exchange gains on translation of financial assets and liabilities  —
 18.3
 —
 0.1
  —
Finance income  7.2
 24.2
 8.7
 0.1
  2.0
Accrued interest  —
 —
 —
 —
  (60.2)
Cash pay interest expense  (54.0) (68.7) (38.8) —
  (35.4)
Cross-currency interest rate swaps: cash flow hedges, transfer from equity  3.9
 —
 —
 —
  —
Other interest expense  —
 (2.8) —
 —
  —
Net pension interest costs  (3.6) (4.1) (1.9) —
  (0.7)
Amortization of borrowing costs  (2.7) (5.0) (2.1) —
  (0.9)
Net foreign exchange losses on translation of financial assets and liabilities  (3.9) —
 (0.5) —
  (20.5)
Interest on unwinding of discounted items  (1.2) (1.4) —
 —
  —
Loss on derivatives  —
 (4.3) —
 —
  —
Financing costs incurred in amendment of terms of debt(1)
  (20.1) —
 (0.9) —
  —
Finance costs  (81.6) (86.3) (44.2) —
  (117.7)
Net finance (costs)/income  (74.4) (62.1) (35.5) 0.1
  (115.7)
(1)     A one-offassociated expenses, a non-cash €4.3 million loss on settlement as well as a charge of €20.1€1.3 million was incurredfrom the write-off of deferred transaction costs.
(b) Includes the unwinding of discounting on lease liabilities. 
(c) Net fair value losses on derivatives held at fair value through profit or loss in 2021 included a one-off non-cash charge of €7.8 million for changes to cross currency interest rate swaps as disclosed in Note 21.
(d) Charges of €17.9 million have been recognized as a consequence of the refinancing in May 2017 and repricingJune 2021, as disclosed in December 2017.Note 21. Of this, €10.1 million relates to the extinguishment of the previous debts, including the write-off of deferred transaction costs of €15.7 million relating to the previous senior debt were written off.costs.

11)Taxation

11)    Taxation
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31,
2020
Note€m€m€m
Current tax expense
Current tax on profits for the period(69.9)(117.5)(44.8)
Adjustments in respect of prior periods5.8 0.6 (7.6)
(64.1)(116.9)(52.4)
Deferred tax benefit/(expense)
Origination and reversal of temporary differences(4.4)116.3 (1.2)
Impact of change in tax rates(2.7)(55.1)(16.8)
16(7.1)61.2 (18.0)
Total tax expense(71.2)(55.7)(70.4)
F-35
   Successor Successor Successor Successor  Predecessor
   Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 Note €m €m €m €m  €m
Current tax expense            
Current tax on profits/loss for the period  (37.5) (58.9) (18.0) —
  (41.2)
Adjustments in respect of prior periods  3.2
 (0.6) (2.3) —
  15.2
   (34.3) (59.5) (20.3) —
  (26.0)
Deferred tax income/(expense)  
 
 
 
  
Origination and reversal of temporary differences  (2.1) 12.9
 10.4
 —
  (14.9)
Impact of change in tax rates  4.4
 7.0
 22.2
 —
  —
 16 2.3
 19.9
 32.6
 —
  (14.9)
Total tax (expense)/credit  (32.0) (39.6) 12.3
 —
  (40.9)



Reconciliation of effective tax rate:

Year ended December 31, 2022Year ended December 31, 2021Year ended December 31,
2020
€m€m€m
Profit before tax321.0 236.7 295.5 
Tax charge at the standard UK corporation tax rate 19% (2021: 19%; 2020: 19%)(61.0)(45.0)(56.1)
Difference in tax rates(16.3)22.7 (18.2)
Non tax deductible interest(0.2)0.1 (0.1)
Other income and expenses not taxable or deductible(3.1)2.5 (0.8)
Unrecognized tax assets(2.5)(1.5)(6.3)
Provisions for uncertainties8.8 (52.5)35.5 
Impact of change in tax rates(2.7)(55.1)(16.8)
Change in tax base of assets due to step-up— 72.5 — 
Prior period adjustment5.8 0.6 (7.6)
Total tax expense(71.2)(55.7)(70.4)
 Successor Successor Successor Successor  Predecessor
 Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 €m €m €m €m  €m
Profit/(loss) before tax168.5
 76.0
 (349.6) (167.5)  (87.1)
Tax (charge)/credit at the standard UK corporation tax rate 19.25% (2016: 20%; 2015: 20.25%)(32.5) (15.2) 70.8
 33.9
  17.6
Difference in tax rates(10.0) (10.0) (67.5) (33.9)  (4.6)
Non tax deductible interest4.4
 —
 (9.9) —
  (8.7)
Other income and expenses not taxable or deductible16.8
 (7.4) 1.0
 —
  (21.6)
Unrecognized tax assets(19.3) (1.8) (2.1) —
  (30.9)
Provisions for uncertainties1.0
 (11.6) 0.1
 —
  (7.9)
Impact of change in deferred tax rates4.4
 7.0
 22.2
 —
  —
Prior period adjustment3.2
 (0.6) (2.3) —
  15.2
Total tax (expense)/credit(32.0) (39.6) 12.3
 —
  (40.9)

Effective tax rates
Successor
The Company is resident in the United Kingdom for tax purposes. The effective tax rate for the year ended December 31, 20172022 was 19%22.2% (year ended December 31, 2016: 52.1%2021: 23.5%). The change is principally caused by expenses which are notmovements in provisions for uncertain tax deductible, partially offsetpositions, and by the non-recognition of deferred tax assets on certain tax losses. Effective from and including January 12, 2016, the Company become a resident in the United Kingdom for United Kingdom tax purposes.one-off items affecting 2021.
The Company operates in many different jurisdictions and in some of these, certain matters are under discussion with local tax authorities. These discussions are often complex and can take many years to resolve. Accrualsresolve, and are in different stages with respect to assessments appeals and refunds. The Company actively seeks to manage the associated risks by proactively engaging with tax authorities and applying for Advanced Pricing Agreements where appropriate. Provisions for uncertain tax contingenciespositions require management to make estimates and judgments with respect to the ultimate outcome of a tax audit, and actual results could vary from these estimates. Where tax exposures can be quantified, a provision is made based on best estimates and management’s judgments. Given the inherent uncertainties in assessing the outcomes of these exposures (which can sometimes be binary in nature), the Company could, in future years, experience adjustments to this provision.provision, including releases of provisions when those exposures become time-barred.
ManagementNotwithstanding this, management believes that the Company’s tax position on all open matters including those in current discussion with local tax authorities is robust and that the Company is appropriately provided. As of December 31, 2022, the current tax payable of €183.0 million and deferred tax assets of €100.4 million includes provisions for uncertain tax positions of €152.9 million. As of December 31, 2021, the current tax payable of €198.5 million and deferred tax assets of €128.3 million of included provisions for uncertain tax positions of €163.4 million.
Following the enactment of the Finance Act 2016,The UK government announced an increase in the standard rate of corporation tax from 19% for 2022 (2021: 19%) to 25% effective from April 1, 2023, substantively enacted on May 24, 2021. The increase gave rise to a substantial one-off deferred tax expense in 2021. The financial statements for the UK is 19.25% for 2017 (2016: 20%). The standardyear ended December 31, 2020 were prepared using the substantively enacted rate of corporation tax in the UK reduced from 20% toof 19% with effect from April 1, 2017 and will reduce by a further 2% to 17% from April 1 2020. As the reductions to 19% and 17% were substantially enacted on September 6, 2016, these rates are reflected in these financial statements..
F-36

The tax (credit)(benefit)/chargeexpense relating to components of other comprehensive income is as follows:


Before
tax		Tax
charge		After tax
Year ended December 31, 2022Note€m€m€m
Remeasurement of post-employment benefit liabilities(108.1)26.1 (82.0)
Net investment hedge15.8 — 15.8 
Cash flow hedges(67.8)3.3 (64.5)
Other comprehensive (income)/loss(160.1)29.4 (130.7)
Current tax— 
Deferred tax1629.4 
29.4 
Before
tax		Tax benefitAfter tax
Year ended December 31, 2021Note€m€m€m
Remeasurement of post-employment benefit liabilities(36.1)10.2 (25.9)
Net investment hedge(18.8)— (18.8)
Cash flow hedges(22.6)13.6 (9.0)
Other comprehensive (income)/loss(77.5)23.8 (53.7)
Current tax— 
Deferred tax1623.8 
23.8 
Before
tax		Tax
benefit		After tax
Year ended December 31, 2020€m€m€m
Remeasurement of post-employment benefit liabilities27.8 (8.3)19.5 
Net investment hedge10.1 — 10.1 
Cash flow hedges17.3 (6.0)11.3 
Other comprehensive loss/(income)55.2 (14.3)40.9 
Current tax— 
Deferred tax(14.3)
(14.3)
Successor
Amounts recognized directly in equity
   
Before
tax
 
Tax
charge/
(credit)
 After tax
Year ended December 31, 2017Note €m €m €m
Remeasurement of post-employment benefit liabilities  (2.9) 2.0
 (0.9)
Net investment hedge  0.8
 —
 0.8
Cash flow hedges  16.4
 (5.0) 11.4
Other comprehensive loss  14.3
 (3.0) 11.3
Current tax  —
 —
 —
Deferred tax16 —
 (3.0) —
   —
 (3.0) —
   
Before
tax
 
Tax
charge
 After tax
Year ended December 31, 2016Note €m €m €m
Remeasurement of post-employment benefit liabilities  23.6
 6.3
 29.9
Net investment hedge  0.5
 —
 0.5
Cash flow hedges  (10.1) 2.8
 (7.3)
Other comprehensive loss  14.0
 9.1
 23.1
Current tax  —
 —
 —
Deferred tax16 —
 9.1
 —
   —
 9.1
 —
   
Before
tax
 
Tax
charge
 After tax
Nine months ended December 31, 2015Note €m €m €m
Remeasurement of post-employment benefit liabilities  (19.4) 6.1
 (13.3)
Net investment hedge  4.4
 —
 4.4
Cash flow hedges  (1.6) 0.5
 (1.1)
Other comprehensive (income)/loss  (16.6) 6.6
 (10.0)
Current tax  —
 —
 —
Deferred tax16 —
 6.6
 —
   —
 6.6
 —
Aggregate current and deferred tax arising in the reporting period and not recognized in net profit or loss or other comprehensive income but directly credited to equity. These relates to the payment of employer taxes on shares issued under management share awards.
Predecessor       
   
Before
tax
 
Tax
credit
 After tax
5 months ended May 31, 2015Note €m €m €m
Remeasurement of post-employment benefit liabilities  2.5
 (0.7) 1.8
Net investment hedge  (44.7) —
 (44.7)
Cash flow hedges  —
 —
 —
Other comprehensive income  (42.2) (0.7) (42.9)
Current tax  —
 —
 —
Deferred tax16 —
 (0.7) —
   —
 (0.7) —



12)Property, plant and equipmentYear ended December 31, 2022Year ended December 31, 2021Year ended December 31,
2020
€m€m€m
Current tax benefit0.3 — — 
Deferred tax benefit2.0 — — 
2.3——

F-37
 
Land and
buildings
 
Plant and
equipment
 
Computer
equipment
 Total
 €m €m €m €m
SUCCESSOR       
Cost       
Balance at December 31, 2015119.2
 221.8
 2.4
 343.4
Acquisitions through business combinations—
 2.5
 —
 2.5
Additions3.3
 34.3
 0.4
 38.0
Transfer to intangible assets (note 13)(1.7) 1.1
 —
 (0.6)
Disposals(2.7) (0.6) —
 (3.3)
Effect of movements in foreign exchange(7.6) (28.8) —
 (36.4)
Balance at December 31, 2016110.5
 230.3
 2.8
 343.6
Additions11.6
 26.0
 0.4
 38.0
Disposals(0.1) (1.1) —
 (1.2)
Effect of movements in foreign exchange(4.6) (12.7) —
 (17.3)
Balance at December 31, 2017117.4
 242.5
 3.2
 363.1
Accumulated depreciation and impairment

 

 

 

Balance at December 31, 20153.4
 21.4
 0.4
 25.2
Depreciation6.5
 35.7
 1.1
 43.3
Impairment(0.2) 1.6
 —
 1.4
Transfers—
 0.2
 (0.2) —
Effect of movements in foreign exchange(3.9) (20.5) (0.1) (24.5)
Balance at December 31, 20165.8
 38.4
 1.2
 45.4
Depreciation6.1
 28.9
 0.9
 35.9
Impairment—
 0.3
 —
 0.3
Effect of movements in foreign exchange(3.7) (10.2) —
 (13.9)
Balance at December 31, 20178.2
 57.4
 2.1
 67.7
Net book value December 31, 2015115.8
 200.4
 2.0
 318.2
Net book value December 31, 2016104.7
 191.9
 1.6
 298.2
Net book value December 31, 2017109.2
 185.1
 1.1
 295.4

Leased12)    Property, plant and equipment
The Company leased items of machinery in Sweden
December 31, 2022December 31, 2021
€m€m
Owned property, plant and equipment (i)493.9 489.2 
Right-of-use assets (ii)49.0 60.2 
Property, plant and equipment542.9 549.4 



(i)    Owned property, plant and equipment
Land and
buildings		Plant and
equipment		Computer
equipment		Total
€m€m€m€m
Cost
Balance at December 31, 2020165.3 376.1 15.3 556.7 
Acquisitions through business combinations30.5 45.0 0.5 76.0 
Additions14.8 62.8 3.5 81.1 
Disposals(0.1)(5.9)— (6.0)
Effect of movements in foreign exchange6.2 16.2 0.4 22.8 
Balance at December 31, 2021216.7 494.2 19.7 730.6 
Additions13.6 57.0 1.8 72.4 
Transfer to intangible assets (note 13)— — (1.7)(1.7)
Disposals(0.1)(5.3)(5.6)(11.0)
Effect of movements in foreign exchange(4.2)(17.3)— (21.5)
Balance at December 31, 2022226.0 528.6 14.2 768.8 
Accumulated depreciation and impairment
Balance at December 31, 202029.2 148.1 6.2 183.5 
Depreciation8.4 35.4 3.0 46.8 
Disposals— (4.8)— (4.8)
Effect of movements in foreign exchange2.9 12.6 0.4 15.9 
Balance at December 31, 202140.5 191.3 9.6 241.4 
Depreciation10.3 44.3 3.1 57.7 
Transfer to intangible assets (note 13)— — (0.1)(0.1)
Disposals— (4.6)(5.6)(10.2)
Effect of movements in foreign exchange(2.2)(11.5)(0.2)(13.9)
Balance at December 31, 202248.6 219.5 6.8 274.9 
Net book value December 31, 2020136.1 228.0 9.1 373.2 
Net book value December 31, 2021176.2 302.9 10.1 489.2 
Balance at December 31, 2022177.4 309.1 7.4 493.9 

Assets under finance leases which were disposed of inconstruction
Additions for the year ended December 31, 2017 and so the net carrying amount2022 include assets under construction of those leased assets is nil (December€31.0 million (year ended December 31, 2016: €0.82021: €40.5 million).
F-38

Security
Borrowings have been provided by a syndicate of third party lenders under the terms of the Senior Facilities Agreement, (the “Syndicate”). The Syndicate togetherTogether with the holders of the bond issue haveSenior Secured Notes (the "Bond issue"), the Syndicate has security over the assets of the ‘guarantor group’"Guarantor Group". The ‘Guarantor Group’"Guarantor Group" consists of those companies which individually have more than 5% of consolidated total assets or EBITDA (as(subject to, and as defined in the Senior Facilities Agreement) of the Company and in total comprise more than 80% of consolidated total assets or EBITDA at any testing date.


(ii)    Right-of-use assets

December 31, 2022December 31, 2021
€m€m
Net book value
Land and Buildings35.0 44.8 
Plant and equipment and motor vehicles13.9 15.3 
Computer equipment0.1 0.1 
Right-of-use assets49.0 60.2 



Additions to right-of-use assets during the year ended December 31, 2022 were €10.8 million.

Lease liabilities are included within loans and borrowings in Note 21. Interest on lease liabilities is presented as a finance cost in Note 10. Payments of lease liabilities are included as a financing activity within the Statement of Cash Flows.
13)Goodwill and Intangibles

Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
€m€m€m
Depreciation
Land and Buildings15.2 10.9 10.6 
Plant and equipment and motor vehicles6.8 5.5 4.9 
Computer equipment0.1 0.2 0.2 
Depreciation expense of right-of-use assets22.1 16.6 15.7 



F-39

 Goodwill Brands 
Computer
software
 
Customer
relationships
 Others Total
 €m €m €m €m €m €m
Cost           
Balance at December 31, 20151,676.8
 1,688.9
 11.0
 31.0
 0.2
 3,407.9
Acquisitions through business combinations68.8
 —
 —
 —
 (0.2) 68.6
Additions—
 —
 4.4
 —
 —
 4.4
Transfer from tangible assets (note 12)—
 —
 0.6
 —
 —
 0.6
Effect of movements in foreign exchange—
 —
 (1.3) —
 —
 (1.3)
Balance at December 31, 20161,745.6
 1,688.9
 14.7
 31.0
 —
 3,480.2
Additions—
 —
 4.6
 —
 —
 4.6
Effect of movements in foreign exchange—
 —
 (1.0) —
 —
 (1.0)
Balance at December 31, 20171,745.6
 1,688.9
 18.3
 31.0
 —
 3,483.8
13)    Goodwill and Intangibles
GoodwillBrandsComputer
software		Customer
relationships		Total
€m€m€m€m€m
Cost
Balance at December 31, 20201,902.5 2,122.4 39.0 31.0 4,094.9 
Acquisitions through business combinations192.6 296.5 1.1 4.3 494.5 
Additions— — 5.8 — 5.8 
Disposals— — (2.5)— (2.5)
Effect of movements in foreign exchange4.3 3.2 (0.5)— 7.0 
Balance at December 31, 20212,099.4 2,422.1 42.9 35.3 4,599.7 
Acquisitions through business combinations2.0 — — — 2.0 
Additions— — 11.3 — 11.3 
Transfer from property, plant and equipment (note 12)— — 1.7 — 1.7 
Disposals— — (0.1)— (0.1)
Effect of movements in foreign exchange0.2 3.5 (0.3)— 3.4 
Balance at December 31, 20222,101.6 2,425.6 55.5 35.3 4,618.0 
 Goodwill Brands Computer
software		 Customer
relationships		 Others Total
 €m €m €m €m €m €m
Accumulated amortization and impairment           
Balance at December 31, 2015—
 0.1
 1.0
 0.4
 —
 1.5
Amortization—
 0.7
 4.9
 2.2
 —
 7.8
Effect of movements in foreign exchange—
 —
 (1.3) —
 —
 (1.3)
Balance at December 31, 2016—
 0.8
 4.6
 2.6
 —
 8.0
Amortization—
 0.7
 3.6
 2.2
 —
 6.5
Effect of movements in foreign exchange—
 —
 (0.7) —
 —
 (0.7)
Balance at December 31, 2017—
 1.5
 7.5
 4.8
 —
 13.8
Net book value December 31, 20151,676.8
 1,688.8
 10.0
 30.6
 0.2
 3,406.4
Net book value December 31, 20161,745.6
 1,688.1
 10.1
 28.4
 —
 3,472.2
Net book value December 31, 20171,745.6
 1,687.4
 10.8
 26.2
 —
 3,470.0
GoodwillBrandsComputer
software		Customer
relationships		Total
€m€m€m€m€m
Accumulated amortization and impairment
Balance at December 31, 2020— 5.6 19.7 11.4 36.7 
Amortization— 1.2 4.6 2.4 8.2 
Impairment— — 1.7 — 1.7 
Disposals— — (1.7)— (1.7)
Effect of movements in foreign exchange— — (0.3)— (0.3)
Balance at December 31, 2021— 6.8 24.0 13.8 44.6 
Amortization— 1.1 5.1 2.6 8.8 
Impairment— — — 5.8 5.8 
Transfer from property, plant and equipment (note 12)— — 0.1 — 0.1 
Disposals— — (0.1)— (0.1)
Effect of movements in foreign exchange— — (0.4)— (0.4)
Balance at December 31, 2022— 7.9 28.7 22.2 58.8 
Net book value December 31, 20201,902.5 2,116.8 19.3 19.6 4,058.2 
Net book value December 31, 20212,099.4 2,415.3 18.9 21.5 4,555.1 
Net book value December 31, 20222,101.6 2,417.7 26.8 13.1 4,559.2 

Values for the year ended December 31, 2020 were restated in the year ended December 31, 2021 for fair value adjustments related to the Findus Switzerland acquisition.
Amortization of €6.5€8.8 million (December 31, 2016: €7.82021: €8.2 million; December 31, 2015: €1.52020: €7.8 million) is included in ‘other operating expenses’ in the Consolidated Statement of Profit or Loss. Impairment of customer relationships of €5.8 million (December 31, 2021: impairment of computer software of €1.7 million; December 31, 2020: nil) is included in exceptional items in the Consolidated Statement of Profit or Loss.
AllGoodwill is initially recognized based on the accounting policy for goodwill brands(see note 3.5) and customer relationship values have been allocated to the frozen cash generating unit.is subsequently measured at cost less amounts provided for impairment.
The Company’s goodwill and indefinite life brand and customer relationships values haveof €2,416.4 million.have been allocated based onto a level no larger than the enterprise valueidentified operating segment. This represents the lowest level within the Group at acquisition of each cash generating unit (“CGU”). Goodwillwhich the goodwill is monitored at an operating segment level.for internal management purposes. As required by IAS 36 “Impairment'Impairment of Assets”Assets', an annual review of the carrying amount of the goodwill and the indefinite life brands is carried out to identify whether there is any impairment to thesethe carrying values. ThisThe review is done by means ofperformed using the discounted cash flows model whereby a comparison of the carrying
F-40

values to the value in use is made. Impairment is identified by comparing the value in use of the CGU. Value in useFrozen segment, being the level at which Goodwill is calculated as the net present value of the projected risk-adjusted cash flows of each CGU.monitored, to its carrying value.
Key assumptions
The values for the key assumptions relating to the annual review of the carrying amount of goodwill and indefinite life brands were arrived at by taking into consideration detailed historical information and comparison to external sources where appropriate, such as market rates for discount factors.


•Budgeted cash flows: the calculation of value in use has been based on the cash flow forecasts by management for 20182023 to 2020. The trends in these forecasts have been extrapolated to produce 2021 and 2022 forecast cash flows.2027. Beyond 20222027 the same assumptions have been applied for future periods in the absence of longer term detailed forecasts. These plans have been prepared and approved by management, and incorporate past performance of the entities acquired in the period, historical growth rates and projections of developments in key markets.


Sales:•Revenue: projected salesrevenues are built up with reference to markets and product platforms. They incorporate past performance, historical growth rates and projections of developments in key markets.
Adjusted EBITDA Margin:•Future cash flows make assumptions over consumers' responses to price increases which are inherently less predictable in times of high inflation. Specific risks regarding considered are set out in Item 3D: Key Information - Risk Factors.
•In relation to the ongoing conflict in Ukraine, management assume that there are no further material changes to economic sanctions and tariffs impacting the availability and cost of raw materials and resources. Specific risks regarding the conflict are set out in Item 3D: Key Information - Risk Factors.
•Future cash flows are dependent on the outcome of ongoing negotiations over regulations in place governing the import and export of goods between the UK and the European Union which continue to be in a state of transition. Management assumes that the outcome of these does not place a materially greater cost and administrative burden on the Company.
•The impact of climate change on future cash flows has been considered in future cash flows. Specific risks considered are set out in Item 3D: Key Information - Risk Factors.
•Profit margins: projected margins reflect historical performance.performance, which incorporate the impact of recent volatility as a result of COVID-19.
•Capital expenditure forecast reflects one-off additional capitalexpected expenditure required in order to integraterequirements and includes an allowance for the operationsreplacement of the Findus acquisition.leased right-of-use assets.
•Discount rate: a pre-tax discount rate of 8.0% (2016: 8.0%8.3% (2021: 6.4%) was applied to the cash flows. This discount rate has been calculated using a capital asset pricing model using observable market data includingfor comparable companies as well as the share price of Nomad Foods Limited.
•Long-term growth rates: as required by IAS 36, growth rates for the period after the detailed forecasts are based on past performance. The growth rate used in the testing after the detailed forecasting period was 1.0% (2016: 0.5%(2021: 1.0%). These rates do not reflect the long-term assumptions used by the Company for investment planning.planning and exclude expectations of future inflation.
Sensitivity to changes in assumptions
Impairment was not required at either December 31, 20172022, or December 31, 2016.2021. In each case the valuations derived from the discounted cash flow model indicate a sufficient amount of headroom for which any reasonably possible change to key assumptions is unlikely to result in an impairment of the related goodwill.goodwill or indefinite-lived intangible assets.
14)    Acquisitions
(a)    Fortenova Acquisition
On September 30, 2021, the Company announced the completion of the acquisition of the Fortenova Group’s Frozen Food Business Group (FFBG) for consideration of €641.6 million. FFBG is a leading European frozen food portfolio operating in attractive markets new to Nomad, including Croatia, Serbia, Bosnia & Herzegovina, Hungary, Slovenia, Kosovo, North Macedonia and Montenegro. Its two anchor brands, Ledo and Frikom, have unparalleled consumer awareness and number one market share in many of these markets and offer a broad range of frozen food products including fish, fruits, vegetables, ready meals, pastry and ice cream.
The consideration included cash paid as well as contingent consideration due which has been reassessed in the year, which has increased the overall consideration by €1.5 million compared to that reported as at December 31,
F-41

2021, with a corresponding increase in goodwill. Given the magnitude of the change we have elected not to restate the comparative values presented. Contingent consideration remaining is payable on the recovery of some ringfenced assets and has been recognized to the extent management believes they will be recoverable. During the year an adjustment has also been made in relation to the value of assets acquired, whereby trade and other receivables has been reduced by €0.6 million with a corresponding increase in goodwill. The assessment of the values over the assets and liabilities at the date of acquisition and the consideration paid has been completed and is as follows:
14)AcquisitionsSeptember 30, 2021
On January 17, 2018 we entered into an agreement to acquire Green Isle Foods Ltd. including the Goodfella's and San Marco brands, in an all cash deal valued at £200 million (approximately €225 million). We anticipate this acquisition to be completed in the second quarter of 2018 and we expect this will enlarge our portfolio of brands to include the number one and number two market share positions within the frozen pizza category in Ireland and the UK, a successful frozen private label pizza business, and two frozen pizza manufacturing facilities. The purchase price of the acquisition is expected to be funded through cash on hand. The Company will disclose the impact of this acquisition once successfully completed. See Note 38, Significant events after the Statement of Financial Position date.




15)Investments€m
Assets:
Intangible assets301.9 
Property, plant and equipment, including Right-of-use assets95.0 
Trade and other receivables71.1 
Cash43.6 
Inventories46.9 
Deferred taxes14.8 
Total assets573.3
Liabilities:
Current liabilities62.1 
Non-current liabilities16.6 
Deferred taxes47.7 
Total liabilities126.4
Total identifiable net assets acquired446.9
Total purchase consideration641.6
Total identifiable net assets acquired(446.9)
Goodwill194.7
The goodwill recognized on acquisition is €194.7 million. The goodwill recognized is attributable mainly to the growth prospects for the business expected organically and operational synergies.
(b)     Purchase consideration - cash outflow
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
Outflow of cash for business combinations, net of cash acquired€m€m€m
Net cash consideration (received)/paid(0.4)640.9 113.0 
Less cash acquired— (43.6)(0.1)
Net (inflow)/outflow of cash - investing activities(0.4)597.3 112.9 
F-42

15)    Investments
The following are the Company's significant investments as of December 31, 2017.2022.


Activity
Country of

incorporation
Country of tax residence
Class of

shares held
Ownership

as of
December 31, 2020
Dec 31, 2017
Nomad Foods Europe Holdings LimitedHoldingEnglandUnited KingdomOrdinaryOrdinary100%
Nomad Foods Europe Holdco LimitedHoldingEnglandUnited KingdomOrdinaryOrdinary100%
Nomad Foods Europe Finco LimitedHoldingEnglandUnited KingdomOrdinaryOrdinary100%
Nomad Foods Europe Midco Limited
Holding/

Finance
EnglandUnited KingdomOrdinaryOrdinary100%
Nomad Foods Bondco PlcFinanceEnglandUnited KingdomOrdinaryOrdinary100%
Nomad Foods Lux S.à.r.l.FinanceLuxembourgLuxembourgOrdinaryOrdinary100%
Nomad Foods Europe LimitedManagementEnglandUnited KingdomOrdinaryOrdinary100%
Birds Eye LimitedTradingEnglandUnited KingdomOrdinaryOrdinary100%
Nomad Foods Europe Finance LimitedFinanceEnglandUnited KingdomOrdinaryOrdinary100%
Birds Eye Ireland LimitedTrading
Republic of

Ireland
Republic of
Ireland		OrdinaryOrdinary100%
Iglo Holding GmbHHoldingGermanyGermanyOrdinaryOrdinary100%
Iglo Nederland B.V.TradingNetherlandsNetherlandsOrdinaryOrdinary100%
Iglo Belgium S.A.TradingBelgiumBelgiumOrdinaryOrdinary100%
Iglo PortugalTradingPortugalPortugalOrdinaryOrdinary100%
Iglo Austria Holdings GmbHHoldingAustriaAustriaOrdinaryOrdinary100%
C.S.I. Compagnia Surgelati Italiana S.R.LTradingItalyItalyOrdinaryOrdinary100%
Findus Sverige Holdings ABHoldingSwedenSwedenOrdinaryOrdinary100%
Iglo GmbHTradingGermanyGermanyOrdinaryOrdinary100%
Frozen Fish International GmbHTradingGermanyGermanyOrdinaryOrdinary100%
Liberator Germany Newco GmbHPropertyGermanyGermanyOrdinaryOrdinary100%
Iglo Austria GmbHTradingAustriaAustriaOrdinaryOrdinary100%
Findus Sverige ABTradingSwedenSwedenOrdinaryOrdinary100%
Frionor Sverige ABHoldingSwedenSwedenOrdinaryOrdinary100%
Findus Holdings France SASHoldingFranceFranceOrdinaryOrdinary100%
Findus France SASTradingFranceFranceOrdinaryOrdinary100%
Findus Espana SLUTradingSpainSpainOrdinaryOrdinary100%
Findus Danmark A/STradingDenmarkDenmarkOrdinaryOrdinary100%
Findus Finland OyTradingFinlandFinlandOrdinaryOrdinary100%
Findus Norge ASTradingNorwayNorwayOrdinaryOrdinary100%
Findus Norge Holding ASHoldingNorwayNorwayOrdinary100%
Toppfrys ABTradingSwedenSwedenOrdinary100%
Findus Switzerland AGTradingSwitzerlandSwitzerlandOrdinary100%
LEDO plus d.o.o.TradingCroatiaCroatiaOrdinary100%
INDUSTRIJA SMRZNUTE HRANE FRIKOM DOO BEOGRADTradingSerbiaSerbiaOrdinary100%

F-43


16)LEDO d.o.o. ČitlukDeferred tax assets and liabilitiesTradingBosnia & HerzegovinaBosnia & HerzegovinaOrdinary100%
IRIDA d.o.o.TradingCroatiaCroatiaOrdinary100%
LEDO Jégkrém és Fagyasztott Élelmiszer Gyártó és Forgalmazó Korlátolt Felelősségű TársaságTradingHungaryHungaryOrdinary100%
Ledo d.o.o. (LEDO, podjetje za trgovino s sladoledom, zmrznjeno hrano in storitve, d.o.o.)TradingSloveniaSloveniaOrdinary100%
Ledo d.o.o. Podgorica (Društvo Za Proizvodnju, promet roba i usluga “Ledo” d.o.o. Podgorica)TradingMontenegroMontenegroOrdinary100%
Ledo Sh.p.k.TradingKosovoKosovoOrdinary100%
FRIKOM BEOGRAD DOOEL Cucer SandevoTradingNorth MacedoniaNorth MacedoniaOrdinary100%
16)    Deferred tax assets and liabilities
Recognized deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:

Dec 31, 2017 Dec 31, 2016December 31, 2022December 31, 2021
Assets Liabilities Total Assets Liabilities TotalAssetsLiabilitiesTotalAssetsLiabilitiesTotal
€m €m €m €m €m €m€m€m€m€m€m€m
Property, plant and equipment13.5
 (28.7) (15.2) 10.3
 (33.6) (23.3)Property, plant and equipment6.2 (39.9)(33.7)8.9 (34.4)(25.5)
Intangible assets0.1
 (295.1) (295.0) —
 (291.3) (291.3)Intangible assets29.9 (384.6)(354.7)33.8 (382.9)(349.1)
Employee benefits28.2
 —
 28.2
 27.8
 (0.1) 27.7
Employee benefits13.0 — 13.0 36.4 — 36.4 
Tax value of loss carry forwards15.6
 —
 15.6
 18.9
 —
 18.9
Tax value of loss carry forwards43.8 — 43.8 40.4 — 40.4 
Derivative financial instruments0.9
 0.5
 1.4
 —
 (3.3) (3.3)Derivative financial instruments0.1 (8.9)(8.8)1.7 (7.0)(5.3)
Other6.0
 (4.4) 1.6
 7.9
 (4.9) 3.0
Other7.4 (12.3)(4.9)7.1 (13.3)(6.2)
Tax assets/(liabilities)64.3
 (327.7) (263.4) 64.9
 (333.2) (268.3)Tax assets/(liabilities)100.4 (445.7)(345.3)128.3 (437.6)(309.3)
Deferred income tax assets are recognized for tax loss carry-forwards to the extent that the realization of the related tax benefit through future taxable profits is probable.
Deferred tax assets that the Company has not recognized in the financial statements amount to €65.3€65.2 million (December 31, 2016: €56.32021: €70.4 million). These deferred tax assets havehad not been recognized as the likelihood of recovery is not probable. A deferred tax asset on tax losses acquired from the Iglo Group was not recognized at the acquisition date. During 2016, following discussions with tax authorities, the group revised its assessment of the likely recovery of these losses and a resulting deferred tax asset has now been recognized.
The aggregate deferred tax relating to items that have been credited directly to equity is €3.0 million (December 31, 2016: charge of €9.1 million).
F-44

Movement in deferred tax during the year:

Opening balance Jan 1, 2022Recognized 
in Statement of Profit or Loss		Recognized
in Other
Comprehensive
Income		Recognized directly in equityMovement
in foreign
exchange		Closing balance Dec 31, 2022
€m€m€m€m€m€m
Property, plant and equipment(25.5)(8.7)— — 0.5 (33.7)
Intangible assets(349.1)(4.8)— — (0.8)(354.7)
Employee benefits36.4 1.0 (26.1)2.0 (0.3)13.0 
Tax value of loss carry forwards40.4 4.8 — — (1.4)43.8 
Derivative financial instruments(5.3)(0.5)(3.3)— 0.3 (8.8)
Other(6.2)1.1 — — 0.2 (4.9)
Total deferred tax(309.3)(7.1)(29.4)2.0 (1.5)(345.3)
Opening balance Jan 1, 2021Acquired in business combinationsRecognized 
in Statement of Profit or Loss		Recognized
in Other
Comprehensive
Income		Movement
in foreign
exchange		Closing balance Dec 31, 2021
€m€m€m€m€m€m
Property, plant and equipment(6.7)(2.2)(17.2)— 0.6 (25.5)
Intangible assets(383.5)(30.1)64.5 — — (349.1)
Employee benefits48.0 — (1.2)(10.2)(0.2)36.4 
Tax value of loss carry forwards24.6 — 15.8 — — 40.4 
Derivative financial instruments9.2 — (0.3)(13.6)(0.6)(5.3)
Other(5.2)(0.6)(0.4)— — (6.2)
Total deferred tax(313.6)(32.9)61.2 (23.8)(0.2)(309.3)

17)    Inventories
 Opening balance Jan 1 2017 Acquired in
business
combinations		 Recognized 
in Statement of Profit or Loss		 Recognized
in Other
Comprehensive
Income		 Movement
in foreign
exchange		 Closing balance Dec 31, 2017
 €m €m €m €m €m €m
Property, plant and equipment(23.3) —
 8.2
 —
 (0.1) (15.2)
Intangible assets(291.3) —
 (3.7) —
 —
 (295.0)
Employee benefits27.7
 —
 2.5
 (2.0) —
 28.2
Tax value of loss carry forwards18.9
 —
 (3.0) —
 (0.3) 15.6
Derivative financial instruments(3.3) —
 (0.3) 5.0
 —
 1.4
Other3.0
 —
 (1.4) —
 —
 1.6
Total deferred tax(268.3) —
 2.3
 3.0
 (0.4) (263.4)
December 31, 2022December 31, 2021
€m€m
Raw materials and consumables134.2 95.8 
Work in progress64.6 64.9 
Finished goods and goods for resale258.3 249.9 
Total inventories457.1 410.6 


 Opening balance Jan 1 2016 Acquired in
business
combinations		 Recognized
in Statement of Profit or Loss		 Recognized
in Other
Comprehensive
Income		 Movement
in foreign
exchange		 Closing balance
Dec 31
2016
 €m €m €m €m €m €m
Property, plant and equipment(5.3) (0.3) (17.2) —
 (0.5) (23.3)
Intangible assets(315.8) —
 24.1
 —
 0.4
 (291.3)
Employee benefits32.7
 —
 1.3
 (6.3) —
 27.7
Tax value of loss carry forwards—
 —
 18.9
 —
 —
 18.9
Derivative financial instruments0.2
 —
 (0.7) (2.8) —
 (3.3)
Other9.5
 —
 (6.5) —
 —
 3.0
Total deferred tax(278.7) (0.3) 19.9
 (9.1) (0.1) (268.3)
17)Inventories

 Successor Successor
 Dec 31, 2017 Dec 31, 2016
 €m €m
Raw materials and consumables82.9
 97.7
Work in progress41.0
 41.7
Finished goods and goods for resale183.0
 185.6
Total inventories306.9
 325.0
As at December 31, 2022, the carrying value of inventory includes a hedge accounting basis adjustment which reduces the value of inventory by €8.4 million (year ended December 31, 2021: reduction of €2.1 million). This has been applied to the three inventory categories above.
During the year ended December 31, 2017 €7.62022, €11.5 million (year ended December 31, 2016 €6.42021: €8.3 million, nine monthsyear ended December 31, 2015: €3.5 million; year ended March 31, 2015: nil)2020: €8.5 million) was charged to the Consolidated Statement of Profit or Loss for the write down of inventories.
18)Trade and other receivables

F-45
 Successor Successor
 Dec 31, 2017 Dec 31, 2016
Current assets€m €m
Trade receivables94.7
 92.3
Prepayments and accrued income10.1
 8.0
Other receivables19.7
 26.1
Tax receivable22.6
 9.3
Total current trade and other receivables147.1
 135.7
Non-current assets   
Other receivables4.3
 0.4
Total non-current trade and other receivables4.3
 0.4
Total trade and other receivables151.4
 136.1


18)    Trade and other receivables
December 31, 2022December 31, 2021
Current assets€m€m
Trade receivables211.2 182.8 
Prepayments and accrued income15.9 15.4 
Other receivables34.6 32.3 
Tax receivable5.1 4.1 
Total current trade and other receivables266.8 234.6 
Non-current assets
Other receivables8.1 8.9 
Total non-current trade and other receivables8.1 8.9 
Total trade and other receivables274.9 243.5 

Trade receivables, prepayments and other receivables, except for those defined as non-current, are expected to be recovered in less than 12 months. Other receivables includes VAT receivable.


The ageingaging of trade receivables is detailed below:
GrossImpairedNet
December 31, 2022€m€m€m
Not past due391.0 (0.2)390.8 
Past due less than 1 month41.3 (0.1)41.2 
Past due 1 to 3 months5.8 (0.3)5.5 
Past due 3 to 6 months2.8 (0.1)2.7 
Past due more than 6 months5.0 (2.6)2.4 
Sub-total445.9 (3.3)442.6 
Reduction in trade-terms(231.4)
Total trade receivables211.2 
GrossImpairedNet
December 31, 2021€m€m€m
Not past due343.8 (0.1)343.7 
Past due less than 1 month19.9 (0.1)19.8 
Past due 1 to 3 months5.2 (0.6)4.6 
Past due 3 to 6 months2.4 (0.1)2.3 
Past due more than 6 months5.0 (2.7)2.3 
Sub-total376.3 (3.6)372.7 
Reduction in trade-terms(189.9)
Total trade receivables182.8 
  Gross Impaired Net
December 31, 2017 €m €m €m
Not past due 243.4
 —
 243.4
Past due less than 1 month 35.6
 (0.7) 34.9
Past due 1 to 3 months 4.8
 (0.3) 4.5
Past due 3 to 6 months 0.2
 (0.2) —
Past due more than 6 months 5.3
 (4.9) 0.4
Sub-total 289.3
 (6.1) 283.2
Reduction in trade-terms*     (188.5)
Total trade receivables     94.7
  Gross Impaired Net
December 31, 2016 €m €m €m
Not past due 229.4
 —
 229.4
Past due less than 1 month 9.8
 (0.1) 9.7
Past due 1 to 3 months 0.9
 (0.2) 0.7
Past due 3 to 6 months 0.9
 (0.1) 0.8
Past due more than 6 months 6.3
 (6.0) 0.3
Sub-total 247.3
 (6.4) 240.9
Reduction in trade-terms*     (148.6)
Total trade receivables     92.3
* Refer toReduction in trade-terms are described in Note 4(a). Reduction in trade term amounts are primarily not past due.
All impaired tradeTrade receivables have been provided to the extent that they are believed not to be recoverable.against based on expected credit losses on positions net of trade-terms, which fall into all aging categories.
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable. The Company does not hold any collateral as security.
19)Indemnification assets
Debts past due are not impaired where there are eligible trade terms deductions which can be offset against them.
 Successor Successor
 Dec 31, 2017 Dec 31, 2016
 €m €m
Related to Iglo Acquisition at start of the period2.1
 10.2
Reclassified from Other receivables—
 1.2
Release of indemnified provision(2.1) (9.3)
Related to Iglo Acquisition at end of the period—
 2.1
Related to Findus Acquisition at start of the period63.4
 67.6
Acquisition accounting adjustment—
 6.2
Remeasurement of indemnification assets10.4
 (10.4)
Related to Findus Acquisition at end of the period73.8
 63.4
Total indemnification assets73.8
 65.5
As partThe Company has previously entered into facilities with third-party banks/credit providers in which the Company sold qualifying trade debtors on a non-recourse basis. Under the terms of these agreements, the Company transferred substantially all the credit risks and control of the acquisition ofreceivables. All factoring facilities were cancelled during 2021. No trade receivables have been derecognized at the Iglo Groupperiod end (December 31, 2021:€ nil).
F-46

Liabilities related to contracts with customers
The Company has recognized the following liabilities related to contracts with customers:
Year ended December 31, 2022Year ended December 31, 2021
€m€m
Trade terms liabilities reported within trade receivables(231.4)(189.9)
Trade terms liabilities reported within trade and other payables (Note 22)(63.4)(93.8)
Total trade terms liabilities(294.8)(283.7)
Significant changes to trade terms
No significant changes to trade terms occurred in the year ended December 31, 2022.
Revenue recognized in relation to trade terms
Trade terms relate to sales made with variable consideration and the Findus Group, the Company inherited several contingent liabilities for which the sellers have providedare an indemnity. To the extent that the liability has beenestimate as disclosed in Note 4(a). Revenue recognized in the balance sheet, anyear ended December 31, 2022 relating to performance obligations that were satisfied in the prior year was €19.0 million (2021: €18.9 million).
19)Indemnification assets
Year ended December 31, 2022Year ended December 31, 2021
€m€m
Balance at January 19.5 15.4 
Release of indemnified provision(7.7)(5.9)
Balance at December 311.8 9.5 
The indemnification asset has been recognized. As part of the agreement to repurchase shares on June 12, 2017, as discussed in Note 25, the indemnities in relation to the Iglo acquisition were canceled. As a consequence, the indemnification asset of €2.1assets included €7.0 million previously recognized has been released.
In total, €73.8 million of liabilities are covered by the indemnification assets as at December 31, 2017 (December 31, 2016: €65.5 million). The asset recognized in relation to the Findus Group has been limited to the original value of shares held in escrow following the completion of the acquisition.


The indemnification asset recognized in relation to the Findus Group is secured by shares held in escrow, so that the value of the assets may, in the future, be restricted to the value of these shares as at the balance sheet date. As at the December 31, 2017, €73.8 million (December 31, 2016: €63.4 million) of the indemnification assets relate2021 related to the acquisition of the Findus Group forin 2015, which 6,964,417was backed primarily by shares arethat were held in escrow. The shares placed in escrow were released in stages over a four-year period which began in January 2019. In January 2022, the remaining 342,190 shares were released from escrow. As a consequence, the associated indemnification asset has been released in full. The corresponding charge has been recognized within exceptional items in Note 7.
The remaining indemnification assets of €1.8 million (2021: €2.5 million) relates to the Goodfella’s Pizza acquisition for several contingent liabilities that arose prior to acquisition and are valued at $16.91 (€14.13) (December 31, 2016: 6,964,417shares valued at $9.57 (€9.10)) each.were recognized in the balance sheet to the same extent as the asset. During 2022, €0.7 million has been released against the liabilities.

20)Cash and cash equivalents
20)Cash and cash equivalents
Successor Successor
Dec 31, 2017 Dec 31, 2016December 31, 2022December 31, 2021
€m €mNote€m€m
Cash and cash equivalents219.0
 325.3
Cash and cash equivalents369.4 254.0 
Restricted cash0.2
 4.2
Restricted cash0.3 0.2 
Total cash and cash equivalents219.2
 329.5
Bank overdrafts—
 —
Cash and cash equivalentsCash and cash equivalents369.7 254.2 
Bank overdraftBank overdraft22 (2.9)— 
Cash and cash equivalents per Statement of Cash Flows219.2
 329.5
Cash and cash equivalents per Statement of Cash Flows366.8 254.2 
‘Cash and cash equivalents’ comprise cash balances and call deposits. Restricted cash comprises money that is primarily reserved for a specific purpose and therefore not available for immediate or general business use. OfBank overdrafts that are repayable on demand and form an integral part of the restrictedCompany's cash totaling €4.2 million at December 31, 2016, €3.6 million was due to French company law requirements.management are included as a component of cash and cash equivalents for the purposes of the Statement of Cash Flows.
F-47
21)Loans and borrowings

21)Loans and borrowings
The repayment profile of the syndicated and other loans held by the Company is as follows:
December 31, 2022December 31, 2021
€m€m
Current liabilities
Syndicated loans6.7 8.5 
Lease liabilities22.3 22.6 
Less capitalized debt discounts and borrowing costs to be amortized within 1 year(6.4)(2.0)
Total due in less than one year22.6 29.1 
Non-current liabilities
Syndicated loans1,333.5 1,347.4 
2028 fixed rate senior secured notes800.0 800.0 
Lease liabilities44.3 58.3 
Less capitalized debt discounts and borrowing costs to be amortized in 2-5 years(25.4)(5.7)
Less capitalized debt discounts and borrowing costs to be amortized in more than 5 years(10.1)(1.7)
Total due after more than one year2,142.3 2,198.3 
Total borrowings2,164.9 2,227.4 
 Successor Successor
 Dec 31, 2017 Dec 31, 2016
 €m €m
Current liabilities/(assets)
 
Syndicated loans

5.1
 —
Less deferred borrowing costs to be amortized within 1 year(1.8) (5.0)
Total due in less than one year3.3
 (5.0)
Non-current liabilities
 
Syndicated loans1,004.4
 964.2
2020 floating rate senior secured notes—
 500.0
2024 fixed rate senior secured notes400.0
 —
Less deferred borrowing costs to be amortized in 2-5 years(7.2) (12.4)
Less deferred borrowing costs to be amortized in more than 5 years(2.1) —
Total due after more than one year1,395.1
 1,451.8
Total borrowings1,398.4
 1,446.8


The table below shows details of individual loans:
 Successor Successor
 Dec 31, 2017 Dec 31, 2016
 €m €m
Current liabilities/(assets)-syndicated loans5.1
 —
Less deferred borrowing costs to be amortized within 1 year(1.8) (5.0)
Total current loans and borrowings3.3
 (5.0)
Non-current liabilities-syndicated loans and secured notes
 
2020 floating rate senior secured notes—
 500.0
2024 fixed rate senior secured notes400.0
 —
Senior C1 EUR—
 363.3
Senior C2 GBP—
 275.9
Senior C3 EUR—
 325.0
Senior B3 EUR500.0
 —
Senior B4 USD504.4
 —
Less deferred borrowing costs to be amortized in 2—5 years(7.2) (12.4)
Less deferred borrowing costs to be amortized in more than 5 years(2.1) —
Total non-current loans and borrowings1,395.1
 1,451.8
Total borrowings1,398.4
 1,446.8
Borrowings under the syndicated loan facility and floating rate notes1,398.4
 1,446.8
The interest rate on all otherSyndicated loans andincludes the floating rate senior secured notes are re-priced within one year to the relevant Euribor or Libor rate.

On May 3, 2017 the Company completed a refinancing of its Senior debt with a syndicate of banks. All Senior debt as at the balance sheet date was repaid and replaced with new Senior EuroU.S. Dollar debt of €500.0$700.0 million (€656.7 million) (the “Senior USD Loan”) and Senior USDEUR debt of $610.0 million. Both€130.0 million (a "Senior EUR Loan") both repayable in November 2029, as well as the Senior EUR debt of €553.2 million (a "Senior EUR Loan") repayable in June 2028. The Senior USD Loan includes an annual amortization repayment, equivalent to 1.0% of the original issuance value or $7.0 million (€6.6 million) in October each year beginning in 2023 until maturity. The Senior EUR Loans are repayable on May 15, 2024, although the Senior USD debt requires a repayment of $6.1 million of principal each year until 2024, beginning May 15, 2018. The existing revolving credit facility was also replaced with a new €80.0 million facility, which is available until May 15, 2023 and will be utilized to support existing letters of credit and bank guarantees and certain other ancillary facilities outside of the Senior debt.
In order to match its underlying cash flows the Company has entered into a number of cross-currency interest rate swaps. In exchange for $610.0 million the Company has received €299.3 million and £226.7 million. The derivatives are designed to minimize the exposure to movements in foreign currency exchange rates and movements in interest rates. In exchange for receiving cash flows in USD matching the payments of principal and interest dueonly upon maturity. As required under the Senior USD debt,Facilities Agreement, the Company will pay fixed amounts of interest and principal on notional amounts of GBP and EUR. All of the USDis also required to EUR swaps have been designated as aundertake an annual excess cash flow hedge whilst EUR to GBP swaps to the value of £187.6 million have been designated as a net investment hedge.calculation whereby additional principal could be repaid.
Concurrent to the refinancing,On June 24, 2021, the Company through its indirect, wholly-owned subsidiary, Nomad Foods BondCoBondco Plc, repaid the €400.0 million 3.25% senior secured notes due 20202024 and successfully completed a private offering of €400.0€750.0 million aggregate principal amount of 3.25%2.5% senior secured notes due May 15, 2024 (theJune 24, 2028. In addition, on July 9, 2021 the Company announced that Nomad Foods Bondco Plc completed a further private offering of €50.0 million aggregate principal amount of additional 2.5% senior secured notes due 2028, representing a tack-on to the €750.0 million aggregate principal amount of senior secured notes due 2028 issued on June 24, 2021, and issued at a price of €100.75 (together the “Notes”).
Interest on the Notes has accruedaccrue from June 24, 2021 (being the original date of issue,issuance) and are payable semi-annually in arrears on MayJanuary 15 and NovemberJuly 15, commencing on NovemberJanuary 15, 2017. Both the new Senior debt and the notes2022. The Notes are guaranteed on a senior basis by the Company and certain subsidiaries thereof and are secured with equal ranking against certain assetsthereof. This transaction was accounted for as an extinguishment of the Company. Eligibleexisting Notes and previously capitalized eligible transaction costs of approximately €9.8 million have been capitalized as part of the refinancing and will be amortized over the life of the debt. As a consequence of the debt extinguishment, deferred borrowing costs relating to the old senior
debt of €15.7 million have been written offwere written-off to the Statement of Profit or LossComprehensive Income, as disclosed in May 2017 (see Note 10).
On December 20, 2017 we further amended and restated our Senior Facilities Agreement to reprice our $610.0 million and €500.0 million term loan facilities. The margin was reduced by 50 basis points on the U.S. Dollar-denominated term loan and 25 basis points on the Euro-denominated term loan. There were no changes to the maturity dates of the term loan facilities as a result of this amendment. We also established a $50.0 million incremental term loan facility and a €58.0 million incremental term loan facility. These amendments were accounted for as a modification of the existing loan. On January 31, 2018, the $50.0 million incremental term loan facility was fully drawn and on February 9, 2018, the €58.0 million incremental term loan facility was fully drawn.10. Eligible transaction costs on the new Notes of approximately €2.5€4.0 million have beenwere capitalized as part of this amendment and will be amortized over the life of the debt.


In addition to thisOn June 24, 2021, the Company hasamended and restated the Senior Facilities Agreement to refinance its existing €553.2 million senior secured term loan facility originally due in May 2024, through a multicurrencynew 7-year term facility due June 2028 (the "Senior EUR Loan"), paying interest at a rate equal to EURIBOR with a zero floor plus a margin of 2.5%. This transaction was accounted for as an extinguishment of the existing debt and previously capitalized eligible transaction costs were written-off to the Statement of Comprehensive Income, as disclosed in Note 10. On the new Senior EUR Loan, eligible transaction costs of €3.8 million were capitalized and will be amortized over the life of the debt.
Under the refinancing, the existing revolving credit facility of €80.0 million. Thismillion due 2023, was also replaced with a new €175.0 million facility is(the "Revolving Credit Facility") available until May 2023. June 2026 with an applicable margin of 2.25% per annum that may be adjusted subject to a leverage ratchet. The Revolving Credit Facility may be utilized to support working capital requirements, including letters of credit and bank guarantees. The structure of the Revolving Credit Facility now also includes a pricing structure linked to environmental impact metrics during the life of the facility, and by doing so demonstrates further commitment to the Company’s sustainability strategy by incorporating ESG target KPIs covering areas of sourcing, packaging and carbon emissions.
F-48

Charges of €17.9 million were recognized as a consequence of the refinancing activities in 2021. Of this, €10.1 million relates to the extinguishment of the previous debts, including the write-off of deferred transaction costs.
On November 8, 2022, the Company amended and restated the Senior Facilities Agreement to issue both a $700.0 million (€700.6 million) term loan bearing interest at a rate per annum equal to the term SOFR rate plus 3.75% with a 0.5% floor and a €130.0 million term loan bearing interest at a rate per annum equal to EURIBOR plus 3.5% with a zero floor, both due November 10, 2029. The net proceeds from these loans were used to repay and extinguish the Company's existing Senior Secured U.S. Dollar term loan due in 2024 in full, and for transaction expenses and general corporate purposes. The new term loans were issued at a discount of €31.3 million, which together with eligible transaction costs of €5.1 million have been capitalized and will be amortized over the life of the debt. Concurrently with the closing of this refinancing, the Company closed out its existing cross currency interest rate swaps and has entered into a number of new 5-year cross-currency and interest rate swaps for the new Term Loans, as detailed in Note 33.
A net income of €2.3 million has been recognized as a consequence of the refinancing activities in 2022 as detailed in Note 10.
As at December 31, 2017 €14.02022 €1.8 million (December 31, 2016: €13.22021: €2.8 million) of the Revolving Credit Facility has been utilized for issuance of letters of credit overdrafts, customer bonds and bank guarantees against the revolving credit facility.guarantees.
Guarantees and secured assets
The Syndicatesenior loans, Senior Secured Notes and any drawn balances of lendersthe Revolving Credit Facility are secured with equal ranking against assets of the Company and specified subsidiaries.
The Senior Facility Agreement that financegoverns the Company’s Senior debt, haveestablishes security over the assets of the “Guarantor Group”. The Guarantor Group consists of those companies whichthat individually have more than 5% of consolidated total assets or EBITDA (as defined in(subject to the terms of the Senior Facilities Agreement) of the Company and in total comprise more than 80% of consolidated total assets or EBITDA at any testing date.
The Senior Facilities Agreement includes an excess cash flow calculation whereupon an amount of principal shall be repaid based upon terms including cash generated during the year and leverage. In 2022 the amount repaid was nil relating to the calculation performed at the end of 2021. Based on the calculation performed for December 31, 2022, there will be no excess cash flow repayment in 2023.
In connection with its pension scheme, Findus Sverige AB, a 100% owned subsidiary, is required to obtain credit insurance with PRI Pensionsgaranti (“PRI”), a credit insurance company whichthat provides insurance annually against the risk of a sponsoring company’s insolvency. In connection with such credit insurance, as at December 31, 20172022 Findus Sverige AB has granted floating charges over certain assets in favor of PRI in an amount of SEK 300 million (€30.527.0 million) (December 31, 2016: €31.32021: €29.3 million) and Nomad Foods Limited has issued a parent guarantee to PRI which will not exceed SEK 495640 million (€50.357.5 million) (December 31, 2016: €45.92021: SEK 640 million (€62.4 million) at any time).
F-49

22)Trade and other payables
December 31, 2022December 31, 2021
Current liabilities€m€m
Trade payables433.3 413.2 
Accruals and deferred income126.4 120.4 
Trade terms payable63.4 93.8 
Social security and other taxes25.0 24.6 
Other payables18.3 20.3 
Financial payables26.1 19.7 
Bank overdrafts2.9 — 
Total current trade and other payables695.4 692.0 
Non-current liabilities
Accruals and deferred income1.1 1.8 
Total non-current trade and other payables1.1 1.8 
Total trade and other payables696.5 693.8 
The Company has an end dateimplemented a Supply Chain Financing (“SCF”) program for its suppliers. The principal purpose of Marchthese arrangements is to provide the supplier with the option to access liquidity earlier through the sale of its receivables due from the Company to a bank or other financial institution prior to their due date. Management has determined that the Company’s payables to these suppliers have neither been extinguished nor have the liabilities been significantly modified by these arrangements. The value of amounts payable, invoice due dates and other terms and conditions applicable, from the Company’s perspective, remain unaltered, with only the ultimate payee being changed. At December 31, 2019.
Capitalization of transaction costs
Fees paid on the establishment of loan facilities are recognized as transaction costs2022, there was no material usage of the loan to the extent that it is probable that some or allprograms (December 31, 2021: nil). The cash outflows in respect of the facilitythese arrangements will be drawn down. In this case, the fee is deferred until the draw-down occurs.recognized within operating cash flows.

22)Trade and other payables
23)Employee benefits
 Successor Successor
 Dec 31, 2017 Dec 31, 2016
Current liabilities€m €m
Trade payables328.9
 345.0
Accruals and deferred income109.6
 92.4
Social security and other taxes18.2
 19.3
Other payables17.7
 13.7
Finance lease obligations—
 0.6
Financial payables3.1
 1.7
Total current trade and other payables477.5
 472.7
Non-current liabilities
 
Finance lease obligations—
 1.0
Accruals and deferred income1.8
 —
Total non-current trade and other payables1.8
 1.0
Total trade and other payables479.3
 473.7
Finance lease obligations
The Company had no finance lease obligations for the year ended December 31, 2017.
 
Future minimum lease
payments
Interest
Present value of minimum
lease payments
€mDec 31, 2017 Dec 31, 2016Dec 31, 2017 Dec 31, 2016Dec 31, 2017 Dec 31, 2016
Less than one year—
 0.7
—
 0.1
—
 0.6
Between one and five years—
 1.1
—
 0.1
—
 1.0
More than five years—
 —
—
 —
—
 —
 —
 1.8
—
 0.2
—
 1.6


23)Employee benefits
The Company operates defined benefit pension plans in Germany, Italy, Sweden and Austria, as well as various defined contribution plans in other countries. All of these schemes were inherited from the Predecessor or acquired from the Findus Group.plans.


i.Defined contribution plans
Successori.Defined contribution plans
The total expense relating to defined contribution plans for the year ended December 31, 20172022 was €8.5€13.4 million (year ended December 31, 2016: €9.62021: €10.2 million, €4.4 million for the nine monthsyear ended December 31, 2015, nil for the year ended March 31, 2015).
Predecessor
The total expense relating to defined contribution plans for the five months period ended May 31, 2015 was €2.4 million.2020: €8.3 million)
 
ii.Defined benefit plans
ii.Defined benefit plans
The Company operates partially funded defined benefit pension plans in Germany and Austria, as well asan unfunded plansdefined benefit pension plan in Sweden and Italy.defined benefit indemnity arrangements in Italy and Austria. In addition, pension benefits in Switzerland are met via a contract with a collective foundation that offers a fully insured solution to provide a contribution-based cash balance retirement plan, which is classified as a defined benefit plan. In addition, an unfunded post-retirement medical plan is operated in Austria. In Germany and Italy, long term service awards are in operation and various other countries provide other employee benefits.
 
December 31, 2022December 31, 2021
€m€m
Net employee benefit obligations-Germany69.4 149.3 
Net employee benefit obligations-Sweden45.4 70.3 
Net employee benefit obligations-Italy4.0 4.6 
Net employee benefit obligations-Switzerland3.4 5.8 
Net employee benefit obligations-Austria2.8 5.5 
Net employee benefit obligations-total of other countries7.1 8.7 
Total net employee benefit obligations132.1 244.2 

F-50
 Successor Successor
 Dec 31, 2017 Dec 31, 2016
 €m €m
Total employee benefit obligations-Germany117.5
 121.8
Total employee benefit obligations-Sweden59.8
 56.7
Total employee benefit obligations-Italy5.3
 5.1
Total employee benefit obligations-Austria2.8
 4.2
Sub-total185.4
 187.8
Total net employee benefit obligations-other countries3.0
 3.1
Total net employee benefit obligations188.4
 190.9

The net obligation of €3.0€7.1 million (December 31, 2016: €3.12021: €8.7 million) in respect of other countries is the aggregate of a number of different types of minor schemes, each one not being considered material individually or in aggregate. Consequently detailed disclosure of these schemes is not provided.material.
The amount included in the Statement of Financial Position arising from the Company’s obligations in respect of its defined benefit retirement plans and other post-employment benefits is as follows:
Successor
Defined benefit
retirement plans		Post-employment
medical benefits
and other benefits		Total
December 31, 2022€m€m€m
Present value of unfunded employee benefit obligations54.0 6.4 60.4 
Present value of funded employee benefit obligations179.3 — 179.3 
Subtotal present value of employee benefit obligations233.3 6.4 239.7 
Fair value of plan assets(107.6)— (107.6)
Recognized liability for net employee benefit obligations125.7 6.4 132.1 
Defined benefit
retirement plans		Post-employment
medical benefits
and other benefits		Total
December 31, 2021€m€m€m
Present value of unfunded employee benefit obligations77.5 11.1 88.6 
Present value of funded employee benefit obligations264.0 — 264.0 
Subtotal present value of employee benefit obligations341.5 11.1 352.6 
Fair value of plan assets(108.4)— (108.4)
Recognized liability for net employee benefit obligations233.1 11.1 244.2 
F-51

 
Defined benefit
retirement plans
 
Post-employment
medical benefits
and other benefits
 Total
December 31, 2017€m €m €m
Present value of unfunded defined benefit obligations65.7
 4.9
 70.6
Present value of funded defined benefit obligations196.1
 —
 196.1
Subtotal present value of defined benefit obligations261.8
 4.9
 266.7
Fair value of plan assets(81.3) —
 (81.3)
Recognized liability for net defined benefit obligations180.5
 4.9
 185.4


 Defined benefit
retirement plans		 Post-employment
medical benefits
and other benefits		 Total
December 31, 2016€m €m €m
Present value of unfunded defined benefit obligations62.5
 4.9
 67.4
Present value of funded defined benefit obligations200.2
 —
 200.2
Subtotal present value of defined benefit obligations262.7
 4.9
 267.6
Fair value of plan assets(79.8) —
 (79.8)
Recognized liability for net defined benefit obligations182.9
 4.9
 187.8
Movements in recognized liabilityReconciliation from the opening balances to the closing balances for the net definedemployee benefit obligations:
 Defined benefit
retirement plans		 Post-employment
medical benefits
and other benefits		 Total
 €m €m €m
Opening balance January 1, 2017182.9
 4.9
 187.8
Current service cost4.1
 (0.1) 4.0
Interest cost3.5
 0.1
 3.6
Actuarial gains(2.9) —
 (2.9)
Contributions to plan(0.5) —
 (0.5)
Benefits paid(4.9) —
 (4.9)
Exchange adjustments(1.7) —
 (1.7)
As at December 31, 2017180.5
 4.9
 185.4
 Defined benefit
retirement plans		 Post-employment
medical benefits
and other benefits		 Total
 €m €m €m
Opening balance January 1, 2016159.4
 5.7
 165.1
Current service cost3.9
 (0.4) 3.5
Interest cost3.9
 0.1
 4.0
Actuarial losses23.6
 —
 23.6
Contributions to plan(0.5) —
 (0.5)
Benefits paid(5.1) (0.3) (5.4)
Exchange adjustments(2.3) (0.2) (2.5)
As at December 31, 2016182.9
 4.9
 187.8



Movements in present value of defined benefit obligations:
 Defined benefit
retirement plans		 Post-employment
medical benefits
and other benefits		 Total
 €m €m €m
Opening balance January 1, 2017262.7
 4.9
 267.6
Current service cost4.1
 (0.1) 4.0
Interest cost4.9
 0.1
 5.0
Actuarial experience losses0.5
 —
 0.5
Actuarial losses arising from changes in financial assumptions1.5
 —
 1.5
Actuarial gains arising from changes in demographic assumptions

(3.0) —
 (3.0)
Contributions to plan0.3
 —
 0.3
Benefits paid(7.5) —
 (7.5)
Exchange adjustments(1.7) —
 (1.7)
As at December 31, 2017261.8
 4.9
 266.7
 Defined benefit
retirement plans		 Post-employment
medical benefits
and other benefits		 Total
 €m €m €m
Opening balance January 1, 2016238.3
 5.7
 244.0
Current service cost3.9
 (0.4) 3.5
Interest cost5.8
 0.1
 5.9
Actuarial experience gains(0.3) —
 (0.3)
Actuarial losses arising from changes in financial assumptions24.5
 —
 24.5
Contributions to plan0.5
 —
 0.5
Benefits paid(7.7) (0.3) (8.0)
Exchange adjustments(2.3) (0.2) (2.5)
As at December 31, 2016262.7
 4.9
 267.6

Movements in fair value of plan assets of defined benefit retirement plans:
2017
€m
Opening balance January 1, 201779.8
Interest income1.4
Actuarial gains arising from the return on plan assets, excluding interest income1.9
Contributions by employer0.5
Contributions by members0.3
Benefits paid(2.6)
As at December 31, 201781.3


2016
€m
Opening balance January 1, 201678.9
Interest income1.9
Actuarial gains arising from the return on plan assets, excluding interest income0.6
Contributions by employer0.5
Contributions by members0.5
Benefits paid(2.6)
As at December 31, 201679.8
Expenseobligation and its components, including the amounts recognized in the Consolidated Statement of Profit or Loss:Loss and the Consolidated Statement of Comprehensive Income:
 Defined benefit
retirement plans		 Post-employment
medical benefits
and other benefits		 Total
 2017 2017 2017
 €m €m €m
Current service cost4.1
 (0.1) 4.0
Interest cost3.5
 0.1
 3.6
For the year ended December 31, 20177.6
 —
 7.6
 Defined benefit
retirement plans		 Post-employment
medical benefits
and other benefits		 Total
 2016 2016 2016
 €m €m €m
Current service cost3.9
 (0.4) 3.5
Interest cost3.9
 0.1
 4.0
For the year ended December 31, 20167.8
 (0.3) 7.5
Present value of defined benefit obligationFair value of plan assetsNet defined benefit obligation
202220212022202120222021
€m€m€m€m€m€m
Balance at January 1352.6 374.1 (108.4)(97.9)244.2 276.2 
Included in the Consolidated Statement of Profit or Loss
Current service cost6.2 7.9 — — 6.2 7.9 
Interest cost/(income)3.8 2.2 (1.0)(0.5)2.8 1.7 
10.0 10.1 (1.0)(0.5)9.0 9.6 
Included in the Consolidated Statement of Comprehensive Income
Actuarial (gain)/loss arising from:
–demographic assumptions
(1.8)(1.5)— — (1.8)(1.5)
–financial assumptions
(118.4)(26.8)— — (118.4)(26.8)
–experience adjustment
7.7 1.8 — — 7.7 1.8 
Loss/(return) on plan assets, excluding interest income— — 4.4 (9.6)4.4 (9.6)
Exchange adjustments(3.5)(0.3)(0.7)(0.6)(4.2)(0.9)
(116.0)(26.8)3.7 (10.2)(112.3)(37.0)
Other
Acquired through business combinations— 3.5 — — — 3.5 
Contributions by employer— — (1.4)(1.2)(1.4)(1.2)
Contributions by members3.2 0.8 (3.2)(0.8)— — 
Benefits paid(10.1)(9.1)2.7 2.2 (7.4)(6.9)
(6.9)(4.8)(1.9)0.2 (8.8)(4.6)
Balance at December 31239.7 352.6 (107.6)(108.4)132.1 244.2 
Current service cost is allocated between cost of sales and other operating expenses. Interest on net definedemployee benefit obligation is disclosed in net financing costs.

The cumulative amount of actuarial (gains)/losses recognized is as follows:
Amount recognized in the Consolidated Statement of Comprehensive Income:
  Year ended December 31, 2017 Year ended December 31, 2016
  €m €m
Actuarial experience losses/(gains) 0.5
 (0.3)
Actuarial losses arising from changes in financial assumptions 1.5
 24.5
Actuarial gains arising from changes in demographic assumptions

 (3.0) —
Actuarial gains arising from the return on plan assets, excluding interest income (1.9) (0.6)
Total actuarial (gains)/losses (2.9) 23.6
     
  2017 2016
  €m €m
Cumulative amount of actuarial losses recognized in Consolidated Statement of Comprehensive Income 1.3
 4.2


Year ended December 31, 2022Year ended December 31, 2021
€m€m
Cumulative amount of actuarial (gains)/losses recognized in Consolidated Statement of Comprehensive Income(71.8)40.5 
The fair value of plan assets, all at quoted prices are as follows:
 
 Dec 31, 2017 Dec 31, 2016December 31, 2022December 31, 2021
 €m €m€m€m
Equities 17.4
 15.1
Equities37.6 32.7 
Debt instruments 51.3
 51.7
Debt instruments34.8 42.7 
Property 8.9
 9.6
Property23.1 20.3 
Other 3.7
 3.4
Other12.1 12.7 
Total 81.3
 79.8
Total107.6 108.4 
 
F-52

 
Defined benefit
retirement plans
    
Post-employment medical
benefits and other
benefits
December 31, 2017Germany Sweden Austria Italy  Germany Austria
Discount rate1.95% 2.4% 2.2% 1.2%  1.15% 0.9%
Inflation rate2.0% 1.9% 2.0% 1.5%  2.0% 2.0%
Rate of increase in salaries2.8% 2.25% 3.0% —
  2.8% 3.0%
Rate of increase for pensions in payment1%-2%
 2.25% 1.7% —
  —
 —
Long term medical cost of inflation—
 —
 —
 —
  —
 2.0%
The following are the principal actuarial assumptions at the reporting date for the defined benefit retirement plans in Germany, Sweden, Austria, Switzerland and Italy. The remaining employee benefit plans are not considered to be material, individually and in aggregate, and therefore we do not provide disclosure of the individual actuarial assumptions for those plans:
Defined benefit
retirement plans
December 31, 2022GermanySwedenAustriaSwitzerlandItaly
Discount rate3.80 %4.00 %3.20 %1.95 %3.50 %
Inflation rate2.20 %2.00 %5.00 %1.25 %2.50 %
Rate of increase in salaries2.80 %3.00 %5.00 %1.75 %3.38 %
Rate of increase for pensions in payment1.00%-2.20%2.00 %— — — 
 
Defined benefit
retirement plans
December 31, 2021GermanySwedenAustriaSwitzerlandItaly
Discount rate1.10 %1.80 %0.90 %0.10 %0.35 %
Inflation rate2.00 %2.20 %2.00 %1.00 %1.50 %
Rate of increase in salaries2.80 %3.20 %2.00 %1.50 %2.63 %
Rate of increase for pensions in payment1.00%-2.00%2.20 %— — — 
 Defined benefit
retirement plans		    Post-employment medical
benefits and other
benefits
December 31, 2016Germany Sweden Austria Italy  Germany Austria
Discount rate1.8% 2.5% 1.0% 1.5%  1.2% 1.0%
Inflation rate2.0% 1.25% 1.7% 1.5%  2.0% 1.7%
Rate of increase in salaries2.5% 2.25% 3.0% —
  2.5% 3.0%
Rate of increase for pensions in payment1%-2% 
 2.25% 1.7% —
  —
 —
Long term medical cost of inflation—
 —
 —
 —
  —
 2.0%

In valuing the liabilities of the pension fund at December 31, 20172022 and December 31, 2016,2021, mortality assumptions have been made as indicated below. The assumptions relating to longevity underlying the pension liabilities at the financial year end date are based on standard actuarial mortality tables and include an allowance for future improvements in longevity. The assumptions are based on the following mortality tables:
•Germany: Richttafeln 20052018 G
•Sweden: DUS 14 (2016: PRI)21 (DUS 14)
•Austria: AVO 2008AVÖ 2018 - P ANG
•Switzerland: BVG 2020 GT
•Italy: RG48
These four references are to the specific standard rates of mortality that are published and widely used in each country for the use of actuarial assessment of pension liabilities and take account of local current and future average life expectancy.
December 31, 2017 (years) Germany Sweden Austria Italy
December 31, 2022 (years)December 31, 2022 (years)GermanySwedenAustriaSwitzerlandItaly
Retiring at the end of the year: Retiring at the end of the year:
Male 20 22 21 20Male2122232221
Female 24 24 25 20Female2524262422
 
December 31, 2021 (years)GermanySwedenAustriaSwitzerlandItaly
Retiring at the end of the year:
Male2122232221
Female2424262422
F-53
December 31, 2016 (years) Germany Sweden Austria Italy
Retiring at the end of the year:        
Male 20 23 21 20
Female 24 25 25 24



The history of experience adjustments from inception of the Company for the definedemployee benefit retirement plans is as follows:
December 31, 2022December 31, 2021December 31, 2020
€m€m€m
Present value of defined benefit obligations233.3 341.5 365.1 
Fair value of plan assets(107.6)(108.4)(97.9)
Recognized liability in the scheme125.7 233.1 267.2 
Experience losses/(gains) on plan liabilities7.7 1.8 (0.8)
Experience losses/(gains) on plan assets4.4 (9.6)(0.4)
  Dec 31, 2017 Dec 31, 2016 9 months ended December 31, 2015
  €m €m €m
Present value of defined benefit obligations 261.8
 262.7
 238.3
Fair value of plan assets (81.3) (79.8) (78.9)
Asset ceiling —
 —
 —
Recognized liability in the scheme 180.5
 182.9
 159.4
Experience losses/(gains) on scheme liabilities 0.5
 (0.3) (1.6)
Experience (gains)/losses on scheme assets (1.9) (0.6) 0.5
Post-employment medical benefits-Net defined benefit obligation - sensitivity analysis
The effect of a 1%1 percentage point movement in the assumed medical cost trend rate is not significant.
Defined benefit obligation- sensitivity analysis
The effect of a 1% movement in the discount ratemost significant assumptions for the year ended December 31, 20172022 is as follows:
 Increase Decrease
 €m €m
Effect on the post-employment benefit obligation(42.3) 55.8
IncreaseDecrease
€m€m
Discount rate(28.5)35.8 
Inflation rate26.9 (22.5)
Rate of increase in salaries7.2 (6.1)
Rate of increase for pensions in payment27.2 (21.3)
There are no deficit elimination plans for any of the defined benefit schemes.plans. Expected contributions and payments to post-employment benefit plans for the period ending December 31, 20172023 are €5.8 million (December 31, 2016: €5.7 million).€6.7 million. The weighted average duration of the defined benefit obligations is 18.316.1 years.




24)Provisions
Successor
F-54
  Restructuring 
Onerous/
unfavorable
contracts
 
Provisions
related to
other taxes
 
Contingent
consideration
 Other Total
  €m €m €m €m €m €m
Balance at December 31, 2015 21.0
 —
 31.8
 17.4
 16.5
 86.7
Additional provision in the period 60.2
 34.7
 —
 —
 5.3
 100.2
Release of provision (5.2) —
 (9.8) —
 (2.6) (17.6)
Adjustment to provisions acquired through business combinations —
 47.3
 2.5
 —
 2.7
 52.5
Utilization of provision (16.7) (2.5) —
 (8.0) (2.2) (29.4)
Unwinding of discounting —
 0.8
 —
 0.6
 —
 1.4
Foreign exchange (0.2) 0.3
 —
 —
 (0.2) (0.1)
Balance at December 31, 2016 59.1
 80.6
 24.5
 10.0
 19.5
 193.7
Additional provision in the period 30.9
 —
 5.8
 —
 6.6
 43.3
Release of provision (0.1) —
 (12.2) —
 (1.2) (13.5)
Transfer between categories —
 —
 (2.1) —
 2.1
 —
Utilization of provision (63.6) (3.9) (5.8) —
 (8.4) (81.7)
Unwinding of discounting —
 0.8
 —
 0.4
 —
 1.2
Foreign exchange —
 (2.1) —
 —
 (0.1) (2.2)
Balance at December 31, 2017 26.3
 75.4
 10.2
 10.4
 18.5
 140.8
Current           68.0
Non-current           72.8
Total           140.8

24)Provisions
RestructuringProvisions
related to
other taxes		OtherTotal
€m€m€m€m
Balance at December 31, 202012.9 6.6 32.3 51.8 
Acquired through business combinations— 0.3 3.8 4.1 
Additional provision in the period2.6 1.0 2.5 6.1 
Release of provision(0.1)— (4.0)(4.1)
Utilization of provision(9.8)— (6.9)(16.7)
Foreign exchange— — 1.0 1.0 
Balance at December 31, 20215.6 7.9 28.7 42.2 
Additional provision in the period2.6 0.9 2.4 5.9 
Release of provision(0.6)— (3.4)(4.0)
Utilization of provision(2.5)(0.1)(3.4)(6.0)
Foreign exchange(0.3)— (0.4)(0.7)
Balance at December 31, 20224.8 8.7 23.9 37.4 
Analysis of total provisions:December 31, 2022December 31, 2021
Current36.1 39.3 
Non-current1.3 2.9 
Total37.4 42.2 
Restructuring
The €26.3€4.8 million (2016: €59.1(2021: €5.6 million) provision relates to committed plans for certain restructuring activities of exceptional nature which are due to be completed within the next 1812 months. A provision of €18.4 million has been recognized in the year ended December 31, 2017 for reorganizational activities arising from the implementation of Nomad's strategic vision across the Company. An additional provision of €12.5 million has been recognized in the year ended December 31, 2017 for restructuring costs associated with the closure of the facility in Bjuv where production has now ceased.
The amounts have been provided based on the latest information available on the likely remaining expenditure required to complete the committed plans. €63.6An additional provision of €2.6 million has been made and €2.5 million has been utilized in the year ended December 31, 2017 which mainly relates to the closure of the production facilities in Bjuv as well as for reorganizational activities arising from the implementation of Nomad's strategic vision across the Company.
Onerous/unfavorable contracts
Of the onerous/unfavorable contracts provision, €72.5 million is held in relation to a lease in Bjuv, Sweden. The factory is now vacant and the Company currently anticipates the warehouse space will not be fully utilized by the Company or other third parties, so the lease has been identified as being onerous.
The ability for the Company to offset the unavoidable costs associated with the unutilized portion of the facility with future rental income is highly uncertain and difficult to accurately estimate. The provision has been assessed to be the best estimate of the net unavoidable costs based on the latest information available. This provision is frequently reassessed by management and may change significantly over time.


The provision is calculated using a discounted cash flow which is subject to a high level of estimation uncertainty. The most significant assumptions are the ability to sublease the facility, the Company’s own use of the facility, the discount rate and inflation. Of these, the ability to sublease the facility or a change to the Company’s usage of the facility are based on management’s best estimate and are a matter of judgment. The provision is highly sensitive to changes in these assumptions as changes can lead to either a material increase or decrease in the provision. The discount rate is based on the risk free rate in Sweden, estimated by management to be 1% (2016: 1%). The inflation rate is also assumed to be 1% (2016: 1%). A 0.5% change in either of these assumptions will increase or decrease the provision by up to 6%.
Furthermore, an independent valuation of the lease performed as part of the acquisition accounting for the November 2, 2015 acquisition of the Findus Group identified that the lease payments were in excess of market rates, deeming the contract to be unfavorable. This provision will be utilized over the duration of the lease.
The remaining provision of €2.9 million relates to a service contract covering the same warehouse facility.2022.
Provisions relating to other taxes
The €10.2€8.7 million (2016: €24.5(2021: €7.9 million) provision relates to other, non-income taxes due to tax authorities after tax investigations within certain operating subsidiaries within the Nomad Group. Developments in the year have led to an additional €5.8 million provision being created which has been offset by a release of €12.2 million. €5.8 million was utilized in the year ended December 31, 2017 as a result of the conclusion of a legacy sales tax dispute.
Contingent consideration
As at December 31, 2017, the provision for contingent consideration comprised of €8.9 million and €1.5 million relating to the acquisition of La Cocinera and the Lutosa brand respectively.
During the year ended December 31, 2017, a €0.4 million charge has been recognized relating to the unwinding of discounting on deferred consideration for the La Cocinera acquisition which occurred in Spain in April 2015. The consideration payable is dependent on specific future events and performance conditions being met. The payment is deferred until April 2020 but must be paid earlier if certain decisions are made by the Company. There was negligible movement on the contingent consideration provided for the Lutosa brand (under license until 2020), which was acquired in Belgium in 2014 and payable in 2019.
Other
Other provisions include €5.6€2.8 million (2016: €6.1(December 31, 2021: €3.9 million) of potentialcontingent liabilities acquired as part of the Goodfella’s Pizza acquisition the majority of which are indemnified by the Seller’s insurance policies, €2.8 million (December 31, 2021: €4.3 million) of obligations in Italy, €3.1€4.3 million (€3.2(December 31, 2021: €4.6 million) for asset retirement obligations, recognized as part€0.9 million (December 31, 2021: €1.3 million) of pre-acquisition related liabilities related to the Findus acquisition €2.7date liabilities of Aunt Bessie's Limited, €2.2 million (2016: €2.8(December 31, 2021: €2.4 million) professional feesof provisions in respectthe period relate to employer taxes on the Long-term Incentive Plan (see Note 8) which would become payable on the issuance of the above mentioned tax investigationsshares, and other obligations from previous accounting periods.

25)Share capital and reserves
F-55

25)Share capital, Capital reserve and Founder Preferred Shares Dividend reserve
Share capital and capital reserve
As at December 31, 2022As at December 31, 2021
€m€m
Authorized:
Unlimited number of Ordinary Shares with nil nominal value issued at $10.00 per sharen/an/a
Unlimited number of Founder Preferred Shares with nil nominal value issued at $10.00 per sharen/an/a
Issued and fully paid:
172,550,253 (December 31, 2021: 173,559,173) Ordinary Shares with nil nominal value1,613.2 1,639.6 
1,500,000 (December 31, 2021: 1,500,000) Founder Preferred Shares with nil nominal value10.6 10.6 
Total share capital and capital reserve1,623.8 1,650.2 
Listing and share transaction costs(27.1)(27.1)
Total net share capital and capital reserve1,596.7 1,623.1 
 As at Dec 31, 2017 As at Dec 31, 2016
 €m €m
Authorized:   
Unlimited number of Ordinary Shares with nil nominal value issued at $10.00 per sharen/a
 n/a
Unlimited number of Founder Preferred Shares with nil nominal value issued at $10 per sharen/a
 n/a
Issued and fully paid:   
165,291,546 (December 31, 2016: 182,088,622) Ordinary Shares with nil nominal value1,626.9
 1,803.4
1,500,000 (December 31, 2016: 1,500,000) Founder Preferred Shares with nil nominal value10.6
 10.6
Total share capital and capital reserve1,637.5
 1,814.0
Listing and share transaction costs(13.8) (13.3)
Total net share capital and capital reserve1,623.7
 1,800.7




Ordinary Shares


 Issued and Repurchased Ordinary shares 

(in millions)
Balance at December 31, 20152020178.4172.2
Shares issued in the period3.7
Balance at December 31, 2016182.1
Shares issued in the year—5.0 
Shares repurchased and canceled in the year(16.8(3.6))
Balance at December 31, 20172021165.3173.6
Shares issued in the year0.2 
Shares repurchased in the year(1.2)
Balance at December 31, 2022172.6
The Company issued 121.5 million Ordinary Shares between April 1, 2015Note 8(b) sets out the Non-Executive Director, Initial Director Options and September 30, 2015. Of these, 13.7 million wereDirector and Senior Management Restricted share awards.
Note 27 sets out the Founder Preferred Share Dividends issued as ordinary shares in all years presented.
On March 13, 2020, the Company announced a partial non-cash consideration for the acquisitionshare repurchase program to purchase up to an aggregate of $300.0 million of the Iglo Group on June 1, 2015, 75.7 million were issued through a private placement on May 26, 2015 and a further 15.4 million were issued through a subsequent private placement on July 8, 2015. 16.7 million Ordinary Shares were issued from the early exercise of warrants.
On November 2, 2015 Nomad issued 8.4 million shares as a partial non-cash consideration for the acquisition of Findus Sverige AB and its subsidiaries. 
On November 27, 2015, the Company issued a further 13,104 shares to key management employees acquired through a bonus issue scheme.
On January 12, 2016, the Company issued a share dividend of 3.6 million Ordinary Shares (the “Founder Preferred Share Dividend”)Company’s ordinary shares. Acquisitions pursuant to the termsstock repurchase program may be made from time to time through a combination of open market repurchases, privately negotiated transactions, accelerated share repurchase transactions, and/or other derivative transactions. After the outstanding founder preferred shares of the Company (the “Founder Preferred Shares”). See the ‘Founder Preferred Shares’ section of this note below for additional information.
In July 2016, the Company issued 23,212 Ordinary Shares in settlement of the Non-Executive Directors restricted share awards. These shares, granted at a share price of $11.50 on December 7, 2015, vested on June 16, 2016 and were issued in July at a share price of $8.98. Of the total 34,780 number of shares vesting, 11,568 shares were held back from issue by the Company as settlement towards personal tax liabilities arising on the vested shares. Following this issuance, the Company had 182,088,622 Ordinary Shares outstanding.
In June 2017, the Company issued 46,296 Ordinary Shares in settlement of the Non-Executive Directors restricted share awards. These shares, granted at a share price of $8.98 on June 16, 2016, vested on June 19, 2017 and were issued at a share price of $14.38. Of the total 55,680 number of shares vesting, 9,384 shares were held back from issue by the Company as settlement towards personal tax liabilities arising on the vested shares.
On June 12, 2017,announcement, the Company entered into a series of open-market repurchases. During 2020, 11,913,682 ordinary shares at an agreementaverage price of $21.04, for aggregate gross costs of $250.9 million (€217.4 million) were repurchased and canceled. Directly attributable transaction costs of €0.2 million were incurred. During 2021, a further 507,396 ordinary shares were repurchased and cancelled at an average price of $25.29 for aggregate gross costs of $12.8 million (€10.5 million) under this authorization.
In August 2020, the Company announced the repurchase of up to repurchase 9,779,729$500.0 million of its shares, beneficially ownedto be executed by funds advised by Permira Advisers LLP ("Permira")way of a Dutch auction. On September 15, 2020, a total of 18,061,952 shares at a clearing price of $25.50 per share amounting to the purchase price of $10.75 per share, which$460.6 million (€389.3 million) was a 25% discountpaid to the closingprevailing shareholders with all shares canceled as of the same date. Directly attributable transaction costs of €1.9 million were incurred.
F-56

On August 5, 2021, the Company announced a new share repurchase program to purchase up to an aggregate of $500.0 million of the Company’s ordinary shares, to be executed in the period to August 2024. Acquisitions pursuant to the stock repurchase program may be made from time to time through a combination of open market repurchases, privately negotiated transactions, accelerated share repurchase transactions, and/or other derivative transactions, at the Company's discretion, as permitted by securities laws and other legal requirements. Pursuant to the program, as at December 31, 2021, 3,090,082 ordinary shares had been repurchased and canceled at an average price of Nomad Foods$24.50, for aggregate gross costs of $75.8 million (€67.1 million). Directly attributable transaction costs of €0.1 million were incurred. During 2022, a further 1,160,547 ordinary shares on June 9, 2017. The aggregate purchasewere repurchased and canceled in open market transactions at an average price of approximately $105.1$26.23 for aggregate gross costs of $30.5 million (€93.926.8 million) was funded from the Company's cash on hand and the sharesunder this authorization. Directly attributable transaction costs were retired on June 12, 2017. The transaction related to a final settlement of indemnity claims against an affiliate of Permira, which are legacy tax matters that predate the Company's acquisition of the Iglo Group in 2015.
On September 11, 2017, the Company entered into an agreement to repurchase 7,063,643 shares of 33,333,334 ordinary shares being sold in an underwritten secondary public offering by selling Shareholders, Pershing Square Capital Management, L.P. (“Pershing Square”), at a per-share purchase price equal to $14.16 per ordinary share. As such, 26,269,691 ordinary shares of the 33,333,334 ordinary shares sold by the Selling Shareholders were sold to the public. The Company did not sell any ordinary shares in the offering and did not receive any of the proceeds from the offering. The aggregate purchase price of approximately $100.0 million (€83.2 million) was funded from the Company's cash on hand and the repurchased shares were retired on September 11, 2017. As part of the transaction, the Company incurred €0.5 million of fees, which were recognized directly within Capital reserve.
Following the issuance and subsequent repurchases of shares in 2017, the Company had 165,291,546 Ordinary Shares outstanding.



immaterial.
Listing and share transaction costs
As at December 31, 2017,2022, cumulative listing and share transaction costs, which includes the total cost of admission and share issuance expenses, on initial public offering, as well as costs associated with share repurchases was €13.8were €27.1 million and are disclosed as a deduction directly against the capital reserve.
€m
At December 31, 2015202013.327.0
Placement feesShare transaction costs—0.1 
At December 31, 2016202113.327.1
Share transaction costs0.5— 
At December 31, 2017202213.827.1
Obligation to purchase shares
As part of the August 5, 2021 authorized share repurchase program, the Company entered into share purchases at agreed prices, totaling 135,621 shares in late 2021 which had not been settled and were therefore not owned by Nomad until early 2022. As at December 31, 2021, the Company recorded €3.0 million within accounts payable to recognize the liability for those shares, with a corresponding other receivable to reflect the value of the shares to be received upon settlement.

Founder Preferred Shares Annual Dividend Amount and Warrant Redemption Amount
Nomad’s issuedAs of December 31, 2022, each of the Founder Preferred Share capital consistsEntities held 750,000 shares for a total of 1,500,000 Founder Preferred Shares.Shares which were issued at $10.00 per share. The Founder Preferred Shares were intended to incentivize the Founders to achieve Nomad’s objectives. In addition to providing long term capital, the Founder Preferred Shares were structured to provide a dividend based on the future appreciation of the market value of the ordinary shares thus aligning the interests of the Founders with those of the holders of ordinary shares on a long term basis. The Founder Preferred Shares were also intended to encourage the Founders to grow Nomad to maximize value for holders of ordinary shares. There are no Founder Preferred Shares held in Treasury. Founder Preferred Shares conferconferred upon the holder the following:


1.
1.the right to one vote per Founder Preferred Share on all matters to be voted on by shareholders generally and to vote together with the holders of ordinary shares;

2.commencing on January 1, 2015 and for each financial year thereafter:

a.once the average price per ordinary share for the Dividend Determination Period, ie. the last ten consecutive trading days of a year is at least $11.50 (which condition has been satisfied for the year ended December 31, 2015), the right to receive a Founder Preferred Shares Annual Dividend Amount (as more fully described below), payable in Ordinary Shares or cash, at the Company’s sole option; and

b.the right to receive dividends and other distributions as may be declared from time to time by the Company’s board of directors with respect to the Ordinary Shares (such dividends to be distributed among the holders of Founder Preferred Shares, as if for such purpose the Founder Preferred Shares had been converted into Ordinary Shares immediately prior to such distribution) plus an amount equal to 20% of the dividend which would be distributable on such number of Ordinary Shares equal to the Preferred Share Dividend Equivalent (as defined below); and

3.in addition to amounts payable pursuant to clause 2 above, the right, together with the holders of Ordinary Shares, to receive such portion of all amounts available for distribution and from time to time distributed by way of dividend or otherwise at such time as determined by the Directors; and

4.the right to an equal share (with the holders of Ordinary Shares on a share for share basis) in the distribution of the surplus assets of Nomad on its liquidation as are attributable to the Founder Preferred Shares; and

5.the ability to convert into Ordinary Shares on a 1-for-1 basis (mandatorily upon a Change of Control or the seventh full financial year after an acquisition).
On January 12, 2016 the Company’s Board of Directors approved a share dividend to the Founder Entities of an aggregate of 3,620,510 Ordinary Shares pursuant to the terms of the outstanding Founder Preferred Shares of the Company at a Dividend Price of $11.4824. Because the average price per Ordinary Share was at least $11.50 for the last ten consecutive trading days of 2015, the holders of the Founder Preferred Shares were entitled to receive the Founder Preferred Share Annual Dividend Amount.ordinary shares;



2.commencing on January 1, 2015 and for each financial year thereafter:
No Founder Preferred Shares Annual Dividend Amount was due as at December 31, 2016 as
a.once the average price per ordinary share for the Dividend Determination Period, i.e. the last ten consecutive trading days of a year is at least $11.50 (which condition has been satisfied for the year did not reachended December 31, 2015), the 2015right to receive a Founder Preferred Shares Annual Dividend Price of $11.482.
On December 29, 2017,Amount (as more fully described below), payable in Ordinary Shares or cash, at the Company’s Boardsole option; and

b.the right to receive dividends and other distributions as may be declared from time to time by the Company’s board of Directors approved a share dividenddirectors with respect to the Ordinary Shares (such dividends to be distributed among the holders of
F-57

Founder Preferred Shares, as if for such purpose the Founder Preferred Shares had been converted into Ordinary Shares immediately prior to such distribution) plus an aggregate of 8,705,890 ordinary shares calculated asamount equal to 20% of the increase individend which would be distributable on such number of Ordinary Shares equal to the market price of our ordinary shares compared to 2015 dividend price of $11.4824 multiplied by Preferred Share Dividend Equivalent. The Dividend Price usedEquivalent (as defined below); and

3.in addition to calculateamounts payable pursuant to clause 2 above, the Annual Dividend Amount was $16.6516 (calculated based uponright, together with the volume weighted average priceholders of Ordinary Shares, to receive such portion of all amounts available for distribution and from time to time distributed by way of dividend or otherwise at such time as determined by the last ten consecutive trading daysDirectors; and

4.the right to an equal share (with the holders of 2017) andOrdinary Shares on a share for share basis) in the ordinary shares underlyingdistribution of the surplus assets of Nomad on its liquidation as are attributable to the Founder Preferred Share Dividend were issuedShares; and

5.the ability to convert into Ordinary Shares on January 2, 2018.a 1-for-1 basis (mandatorily upon a Change of Control or the seventh full financial year after an acquisition)
See Note 27 for further information.
Warrants
On April 11, 2014 in conjunction with its initial public offering, Nomad issued an aggregate 50,000,000 Warrants to purchasers of both its Ordinary andinformation on the Founder Preferred Shares. In addition, 75,000 Warrants in aggregate were issued to Non-Executive directors as part of their appointment as directors. Each Warrant entitled its holder to subscribe for one-third of an ordinary share upon exercise (subject to any prior adjustment in accordance with the terms and conditions set out in the Warrant Instrument). Warrant holders were required therefore (subject to any prior adjustment) to hold and validly exercise three Warrants and pay $11.50 per Ordinary Share in order to receive one Ordinary Share.Shares Dividends issued.
The Warrants were also subject to mandatory redemption at $0.01 per Warrant if at any time the volume-weighted average price per ordinary share equaled or exceeded $18.00 (subject to any prior adjustment in accordance with the terms and conditions set out in the Warrant Instrument) forFounder Preferred Shares converted into Ordinary Shares on a period of ten consecutive trading days.1-for-1 basis on January 3, 2023.
On May 6, 2015 In connection with the Iglo acquisition, the Company obtained the consent of over 75% of the holders of outstanding Warrants to an amendment to the terms of the Warrants in order to provide that the subscription period for the Warrants, which previously would have expired on the third anniversary of the Company’s consummation of its first acquisition, would instead expire on the consummation of the Iglo Group acquisition (except in certain limited circumstances, in which case, such holder will be permitted to exercise his, her or its Warrants until the date that is 30 days following the date of Readmission). The Warrant Amendment was thereby effective on May 6, 2015.
The remaining warrants that were issued by the Company in conjunction with its initial public offering in April 2014 were redeemed in the nine months ended December 31, 2015 and a credit of €0.4 million was recognized in the Consolidated Statement of Profit or Loss.
26)26)    Share-based compensation reserve
Successor
The Company's discretionary share award scheme, the LTIP, enables the Company’s Compensation Committee to make grants (“Awards”) in the form of rights over ordinary shares (“Awards”), to any Director, Non-Executive Director or employee of the Company. However, it is the Committee’s current intention that Awards be granted only to Directors and senior management, including senior management also serving as a director, whilst recognizing a separate annual Restricted Stock Award for Non-Executive Directors.
All Awards are to be settled by physical delivery of shares. Note 8b8(b) sets out the Non-Executive Director and Director and Senior Management Restricted share awards.
Non-Executive Director Restricted Share Awards
The Non-Executive Directors restricted share awards, granted at a share price of $11.50 on December 7, 2015, vested on June 16, 2016 and 23,212 ordinary shares were issued in July at a share price of $8.98, resulting in a €0.3 million reduction in the share based compensation reserve for the year ended December 31, 2016.
The Non-Executive Directors restricted share awards granted at a share price of $8.98 on June 16, 2016 vested on June 19, 2017 and were issued at a share price of $14.38, resulting in a €0.3 million increase in the share based compensation reserve. Of the total 55,680 number of shares vesting, 9,384 shares were held back from issue by the Company as settlement towards personal tax liabilities arising on the vested shares for the year ended December 31, 2017.


On June 19, 2017, current Non-Executive Directors were granted 41,724 restricted share awards at a share price of $14.38. On August 22, 2017, two new Non-Executive Directors were granted a pro-rata 11,774 restricted share awards at the same share price and vesting conditions as the previous grant.
The total charge within the Statement of Consolidated Profit or Loss for the year ended December 31, 2017 for Non-Executive Director stock compensation awards was €0.8 million and €0.6 million for the year ended December 31, 2016. The Director and senior management stock compensation charge reported within the Consolidated Statement of Profit or Loss for the year ended December 31, 2017 was €1.8 million (year ended December 31, 2016: €0.6 million).
Share based

compensation reserve
€m
Balance as of January 1, 201720221.06.9
Non-Executive Director restricted share awards charge0.80.6 
Directors and Senior Management share awards charge1.86.6 
Vesting of Non-Executive Director restricted sharesOther awards share awards charge(0.70.9 )
Shares issued upon vesting of awards(0.4)
Reclassification of awards for settlement of tax liabilities(0.8)
Balance as of December 31, 201720222.913.8


27)Founder Preferred Shares Dividend Reserve
Nomad has issued 27)Founder Preferred Shares to itsDividend Reserve
The Founder Entities.Preferred Shares converted on a 1-for-1 basis into Ordinary Shares on January 3, 2023. A summary of the key terms of the Founder Preferred Shares is set out in Note 25.
The Founder Preferred Shares Annual Dividend Amount iswas structured to provide a dividend based on the future appreciation of the market value of the ordinary shares, thus aligning the interests of the Founders with those of the investors on a long term basis. Commencing in 2015, the Founder Preferred Share Annual Dividend Amount became payable because the Company’s volume weighted average ordinary share price was above $11.50 for the last ten consecutive trading days of the 2015 financial year.
Accordingly, the conditions of the Founder Preferred Shares Annual Dividend Amount for 2015 were met. On January 12, 2016, the Company's Board of Directors approved a share dividend (the “Founder Preferred Share Dividend”) of an aggregate of 3,620,510 ordinary shares calculated as 20% of the increase in the market price of our ordinary shares compared to the initial public offering price of $10.00 multiplied by 140,220,619 (the “Preferred Share Dividend Equivalent”). The Preferred Share Dividend Equivalent is equal to the number of ordinary shares outstanding immediately following the Iglo Acquisition, but excluding the 13.7 million ordinary shares issued to the seller of the Iglo Group. The dividend price (“Dividend Price”) used to calculate the Annual Dividend Amount was $11.4824 (calculated based upon the volume weighted average price for the last ten consecutive trading days of 2015) and the ordinary shares underlying the Founder Preferred Share Dividend were issued on January 12, 2016.
F-58

The conditions of the Founder Preferred Shares Annual Dividend Amount for 2016 were not met and consequently no Founder Preferred Share Dividend was approved for issue.
The conditions of the Founder Preferred Shares Annual Dividend Amount for 2017 were met. On December 29, 2017, the Company’s Board of Directors approved a share dividend of an aggregate of 8,705,890 ordinary shares calculated as 20% of the increase in the market price of our ordinary shares compared to 2015 dividend price of $11.4824 multiplied by Preferred Share Dividend Equivalent. The Dividend Price used to calculate the Annual Dividend Amount was $16.6516 (calculated based upon the volume weighted average price for the last ten consecutive trading days of 2017) and the ordinary shares underlying the Founder Preferred Share Dividend were issued on January 2, 2018.
In future years, the Preferred Shares Annual Dividend amount will bewas determined with reference to the Dividend Determination Period of a financial year, iei.e. the last ten consecutive trading days and calculated as 20% of the increase in the volume weighted average share price of our ordinary shares across the determination period compared to the highest price previously used in calculating the Founder Preferred Share Annual Dividend Amounts multiplied by the Annual140,220,619 Preferred Share Dividend Amount (currently $16.6516)Equivalent (the “Preferred Share Dividend Equivalent”). The Founder Preferred Shares AnnualShare Dividend Amount is paid for so long asEquivalent was equal to the Founder Preferred Shares remain outstanding. The Founder Preferred Shares automatically convert onnumber of ordinary shares outstanding immediately following the last day ofIglo Acquisition, but excluding the seventh full financial year following completion of13.7 million ordinary shares issued to the acquisitionseller of the Iglo Group or upon a change of control, unless in the case of a change of control, the independent Directors determine otherwise.


The amounts used for the purposes of calculating the Founder Preferred Shares Annual Dividend Amount and the relevant numbers of ordinary shares are subject to such adjustments for share splits, share dividends and certain other recapitalization events as the Directors in their absolute discretion determine to be fair and reasonable in the event of a consolidation or sub-division of the ordinary shares in issue, as determined in accordance with Nomad Foods’ Memorandum and Articles of Association.Group.
Dividends on the Founder Preferred Shares arewere payable until the Founder Preferred Shares arewere converted into Ordinary Shares.Shares effective as of January 3, 2023. 
On December 31, 2019, the Company’s Board of Directors approved a share dividend of an aggregate of 6,421,074 ordinary shares calculated as 20% of the increase in the market price of our ordinary shares compared to 2018 dividend price of $16.7538 multiplied by Preferred Share Dividend Equivalent. The Founder Preferred Shares automatically convert on a oneDividend Price used to calculate the Annual Dividend Amount was $21.7289 (calculated based upon the volume weighted average price for one basis (i) on the last dayten consecutive trading days of 2019) and the seventh full financial year following our acquisition of Iglo Foods (or if such day is not a trading day, the next trading day) or (ii) in the event of a change of control (unless the independent directors of our board of directors determine otherwise). The holders of Founder Preferred Shares may also be converted to Ordinaryordinary shares on a one for one basis at the option of the holder. In the event of an automatic conversion, a dividend onunderlying the Founder Preferred Shares shall be payable with respect toShare Dividend were issued on January 2, 2020.
On December 31, 2020, the shortedCompany’s Board of Directors approved a share dividend year on the trading day immediately prior to the conversion. In the event of an optional conversionaggregate of 3,875,036 ordinary shares calculated as 20% of the increase in the market price of our ordinary shares compared to 2019 dividend price of $21.7289 multiplied by the holder, no dividend onPreferred Share Dividend Equivalent. The Dividend Price used to calculate the Annual Dividend Amount was $25.2127 (calculated based upon the volume weighted average price for the last ten consecutive trading days of 2020) and the ordinary shares underlying the Founder Preferred Shares shall be payable with respect to the year in which the conversion occurred.Share Dividend were issued on January 4, 2021.
Founder
Preferred Shares
Dividend Reserve
€m
Balance asAs of January 1, 2017493.4
Settlement of dividend through share issue—
Balance as of December 31, 2017493.4
Prior to June 1, 2015 the Founder Preferred Shares Annual Dividend Amounts were valued and recognized as a liability under IFRS 2. The fair value of the liability at each balance sheet date was valued using a Monte Carlo simulation and any difference in fair value was recorded as an expense through the Consolidated Statement of Profit or Loss. An expense of €349 million was recognized for the nine months ended December 31, 2015 (€165.8 million for the year ended March2021 and as of December 31, 2015).
Upon completion of the acquisition of the Iglo Group on June 1, 2015, the Company intended that the2022, no Founder Preferred Shares Annual Dividend Amount would be equity settled. Accordingly,was due, as the Founder Preferred Shares Annualaverage price per ordinary share for the last ten consecutive trading days of the year did not reach the previously achieved 2020 Dividend AmountPrice of $25.2127. As no further dividends are payable, the remaining reserve as of June 1, 2015 of €531.5 million (the “Founder Preferred Shares Dividend reserve”) was classified as equity and no further revaluations will be required or recorded.December 31, 2022 has been released directly to retained earnings.

28)Translation reserveFounder
Preferred Shares
Dividend Reserve
€m
Balance as of January 1, 2022166.0
Transferred to retained earnings(166.0)
Balance as of December 31, 2022—

28)Translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations, as well as from the translation of liabilities that hedge the Company’s net investment in a foreign subsidiary.
Year ended December 31,
202220212020
€m€m€m
Balance as of January 1105.1 84.7 94.8 
Adjustment on adoption of hedge accounting under IFRS 9— 1.6 — 
Restated balance as of January 1105.1 86.3 94.8 
Foreign currency translation adjustments(15.8)31.7 (23.6)
Net deferred (losses)/gains on net investment hedges (1)— (12.9)13.5 
Total presented in Other Comprehensive Income(15.8)18.8 (10.1)
Balance as of December 3189.3 105.1 84.7 
29)Cash flow hedging reserve

F-59

(1) (Losses)/gains on net investment hedges are offset by gains/(losses) on GBP net investments included within the foreign currency translation adjustments (2021: gains of €24.6 million, 2020: losses of €25.7 million).

The translation reserve as at December 31, 2022 and as at December 31, 2021 does not include any balances relating to continuing hedging relationships. The translation reserve comprises the effective portionas at December 31, 2022 included €50.8 million (2021: €50.8 million) relating to a discontinued hedging relationship in respect of the cumulativeGBP net change ininvestments.
29)    Other reserves
Under IFRS, cost of hedging allows firms to separately account for the fair value movement attributable to foreign currency basis under other comprehensive income (OCI) thereby excluding its impact from the hedge designation itself. Details of the Company's cash flow hedging instruments related to hedged transactions that have not yet occurred. The reserve relating to forward currency contracts will be reclassified to the Statement of Profit or Loss within 12 months whilst the reserve relating to the cross currency interest rate swaps will be reclassified over the life of the instruments.hedge accounting is detailed in Note 33.
The table below shows the movement in the cash flow hedging reserve and cost of hedging reserve during the year, or period, including the gains or losses arising on the revaluation of hedging instruments during the year or period and the amount reclassified from other comprehensive incomeOther Comprehensive Income ("OCI") to the Consolidated Statement of Profit or Loss in the year.

Cross currency interest rate swapsForward currency contractsTotal Cash flow hedge reserveCost of Hedging reserveTotal Other reserves
€m€m€m€m€m
Balance as of January 1, 2020(6.8)(6.4)(13.2)— (13.2)
Change in fair value of hedging instrument recognized in OCI for the year(63.7)(20.0)(83.7)— (83.7)
Reclassified to cost of goods sold— 0.2 0.2 — 0.2 
Reclassified from OCI to net finance costs66.2 — 66.2 — 66.2 
Deferred tax(0.2)6.2 6.0 — 6.0 
Balance as of December 31, 2020(4.5)(20.0)(24.5)— (24.5)
Reallocation for IFRS 9 changes to policy (start of the year)2.8 — 2.8 (4.4)(1.6)
Change in fair value of hedging instrument recognized in OCI for the year73.3 9.3 82.6 2.4 85.0 
Transferred to the carrying value of inventory— 27.6 27.6 — 27.6 
Reclassified from OCI to net finance costs(64.1)— (64.1)1.7 (62.4)
Deferred tax(2.4)(11.1)(13.5)(0.1)(13.6)
Balance as of December 31, 20215.1 5.8 10.9 (0.4)10.5 
Change in fair value of hedging instrument recognized in OCI for the year101.3 57.3 158.6 0.1 158.7 
Transferred to the carrying value of inventory— (55.2)(55.2)— (55.2)
Reclassified from OCI to net finance costs(92.2)— (92.2)1.3 (90.9)
Deferred tax(2.1)(1.0)(3.1)(0.2)(3.3)
Balance as of December 31, 202212.1 6.9 19.0 0.8 19.8 


F-60
 Successor Successor Successor Successor  Predecessor
 Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 €m €m €m €m  €m
(Losses)/gains arising in the revaluation of hedge instruments(76.5) 14.2
 1.6
 —
  —
Less: Gains/(losses) reclassified to the Consolidated Statement of Profit or Loss60.1
 (4.1) —
 —
  —
Total(16.4) 10.1
 1.6
 —
  —

30)Earnings per share
30)Earnings/(loss) per share
Basic earnings/(loss)earnings per share
 Successor Successor Successor Successor  Predecessor
 Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
Net profit/(loss) attributable to shareholders (€m)136.5
 36.4
 (337.3) (167.5)  (128.0)
Weighted average Ordinary Shares and Founder Preferred Shares176,080,272
 183,518,743
 145,590,810
 50,025,000
  n.p.
Basic earnings/(loss) per share (€’s)0.78
 0.20
 (2.32) (3.35)  n.p.
n.p. not presented
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
Profit for the year attributable to equity owners of the parent (€m)249.8 181.0 225.2 
Weighted average Ordinary Shares and Founder Preferred Shares174,279,621 178,070,770 194,019,070 
Basic earnings per share (€’s)1.43 1.02 1.16 
For the year ended December 31, 2017,2022, basic earnings per share is calculated by dividing the profit attributable to the shareholders of the Company of €136.5€249.8 million (year ended December 31, 2016: €36.42021: €181.0 million, nine monthsyear ended December 31, 2015: €337.3 million loss)2020: €225.2 million) by the weighted average number of ordinary sharesOrdinary Shares of 174,580,272172,779,621 (December 31, 2016: 182,018,743, 9 months2021: 176,570,770, year ended December 31, 2015: 144,090,810)2020: 192,519,070) and Founder Preferred Shares of 1,500,000 (December 31, 2016:2021: 1,500,000, 9 monthsyear ended December 31, 2015:2020: 1,500,000).
Diluted earnings/(loss)earnings per share
 Successor Successor Successor Successor  Predecessor
 Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
Net profit/(loss) attributable to shareholders (€m)136.5
 36.4
 (337.3) (167.5)  (128.0)
Weighted average Ordinary Shares and Founder Preferred Shares184,786,162
 183,528,621
 145,590,810
 50,025,000
  n.p. 
Diluted earnings/(loss) per share (€’s)0.74
 0.20
 (2.32) (3.35)  n.p.
n.p. not presented
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
Profit for the year attributable to equity owners of the parent (€m)249.8 181.0 225.2 
Weighted average Ordinary Shares and Founder Preferred Shares174,279,621 178,070,770 197,894,106 
Diluted earnings per share (€’s)1.43 1.02 1.14 
For the year ended December 31, 2017,2022, the number of shares in the diluted earnings per share calculation include 8,705,890nil shares for the dilutive impact of the Ordinary shares to settle the Founder Preferred Shares Annual Dividend for the year ended December 31, 2017, which2022, as no shares were issued in January 2018.due to be issued. Refer to Notes 27 and 38 for further details. There is no adjustment to the profit/(loss) attributable to shareholders.

31)Reconciliation of liabilities arising from financing activities





31)Reconciliation of liabilities arising from financing activities
The table below details changes in the Company's liabilities arising from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be classified in the Company's consolidated statements of cash flows from financing activities.
Cash / non-cashTotal loans and borrowings (Note 21)Financial payables (Note 22)Derivatives: (Net) Fair value of forward foreign exchange and currency swap contracts FVPTLDerivatives: (Net) Fair value of cross currency interest rate swaps
€m€m€m€m
Opening balance January 1, 20222,227.4 19.7 0.4 20.6 
Cash inflow (1)Cash799.3 — 0.3 139.1 
Cash outflowCash(947.9)(68.5)— — 
Interest accretion (2)Cash2.3 77.5 — — 
Exchange movementNon-cash60.9 (0.3)— — 
Fair value changesNon-cash— — (0.7)(103.3)
Other non-cash adjustmentsNon-cash22.9 (2.3)— — 
Closing balance December 31, 20222,164.9 26.1 — 56.4 
F-61

   Cash movements  Non-cash movements  
 Opening balance as of December 31, 2016 Cash inflow (1) Cash outflow (2)  Interest accretion Exchange movement Fair value changes Other non-cash adjustments Closing balance as of December 31, 2017
 €m €m €m  €m €m €m €m €m
Total loans and borrowings (Note 21)1,446.8
 1,470.5
 (1,469.5)  —
 (55.7) —
 6.3
 1,398.4
Total finance lease obligations (Note 22)1.6
 —
 (1.6)  —
 —
 —
 —
 —
Financial payables (Note 22)1.7
 —
 (53.3)  54.0
 0.7
 —
 —
 3.1
Derivatives: (Net) Fair value of forward foreign exchange and currency swap contracts FVPTL0.3
 3.9
 —
  —
 —
 (3.5) —
 0.7
Derivatives: (Net) Fair value of cross currency interest rate swaps—
 4.5
 (2.3)  —
 —
 40.6
 —
 42.8
Cash / non-cashTotal loans and borrowings (Note 21)Financial payables (Note 22)Derivatives: (Net) Fair value of forward foreign exchange and currency swap contracts FVPTLDerivatives: (Net) Fair value of cross currency interest rate swaps
€m€m€m€m
Opening balance January 1, 20211,758.8 3.3 0.2 72.3 
Cash inflow (1)Cash800.0 — 0.3 1.4 
Cash outflowCash(436.0)(38.1)— (2.3)
Interest accretion (2)Cash2.2 57.6 — — 
Acquired through business combinationsNon-cash19.6 — — — 
Exchange movementNon-cash64.1 (0.2)— — 
Fair value changesNon-cash— — (0.1)(44.0)
Other non-cash adjustmentsNon-cash18.7 (2.9)— (6.8)
Closing balance December 31, 20212,227.4 19.7 0.4 20.6 
(1) Cash inflows of €4.5 million from cross currency interest rate swaps are part of effective cash flow hedging relationships and arerelationships. The amount related to payment of interest is presented within interest paid withinin the Consolidated StatementsStatement of Cash Flows. The amount related to repayment of loan principal is presented within proceeds from settlement of derivatives in the Consolidated Statement of Cash Flows.

(2) Interest accretion includes interest on lease liabilities.
32)Cash outflows of €2.3 millionflows from cross currency interest rate swaps are not part of a cash flow hedge and are presented within proceeds on settlement of derivatives within the Consolidated Statements of Cash Flows.operating activities
Note: IFRS 16 Leases becomes effective as of January 1 2019, at which point operating lease liabilities will also appear in the information presented
Year ended December 31, 2022Year ended December 31, 2021Year ended December 31, 2020
Note€m€m€m
Cash flows from operating activities
Profit for the year249.8 181.0 225.1 
Adjustments for:
Exceptional items748.7 45.3 20.6 
Non-cash fair value purchase price adjustment of inventory5— 8.4 — 
Share based payments expense8.1 5.1 9.0 
Depreciation and amortization88.6 71.6 67.6 
Loss on disposal and impairment of property, plant and equipment0.8 0.7 0.9 
Net finance costs1054.4 106.0 63.7 
Taxation1171.2 55.7 70.4 
Operating cash flow before changes in working capital, provisions and exceptional items521.6 473.8 457.3 
Increase in inventories(61.7)(23.8)(12.7)
(Increase)/decrease in trade and other receivables(38.3)24.1 (1.8)
Increase/(decrease) in trade and other payables5.6 (25.0)107.2 
(Decrease)/increase in employee benefit and other provisions(2.4)1.2 2.0 
Cash generated from operations before tax and exceptional items424.8 450.3 552.0 



32)Cash flows from operating activities
33)Financial risk management
   Successor Successor Successor Successor  Predecessor
   Year ended December 31, 2017 Year ended December 31, 2016 9 months ended December 31, 2015 Year ended March 31, 2015  5 months ended May 31, 2015
 Note €m €m €m €m  €m
Cash flows from operating activities            
Profit/(loss) for the period  136.5
 36.4
 (337.3) (167.5)  (128.0)
Adjustments for:  
         
Exceptional items7 37.2
 134.5
 58.1
 0.7
  84.3
Non-cash charge related to Founder Preferred Shares Annual Dividend Amount  —
 —
 349.0
 165.8
  —
Non-cash (charge)/credit related to Warrant Redemption Liability  —
 —
 (0.4) 0.4
  —
Non-cash fair value purchase price adjustment of inventory  —
 —
 37.0
 —
  —
Non-cash cash flow hedge reserve acquisition accounting adjustment  —
 —
 4.9
 —
  —
Non-cash Chairman and Independent Non-Executive Director fees  —
 —
 —
 0.2
  —
Unrealized gain on portfolio investments  —
 —
 —
 (0.1)  —
Share based payments expense  2.6
 1.2
 —
 —
  —
Depreciation charge12 35.9
 43.3
 20.3
 —
  11.3
Amortization13 6.5
 7.8
 1.5
 —
  1.2
Loss on disposal of property, plant and equipment  0.5
 0.7
 —
 —
  —
Finance costs10 81.6
 86.3
 44.2
 —
  117.7
Finance income10 (7.2) (24.2) (8.7) —
  (2.0)
Taxation11 32.0
 39.6
 (12.3) —
  40.9
Operating cash flow before changes in working capital, provisions and exceptional items  325.6
 325.6
 156.3
 (0.5)  125.4
Decrease/(increase) in inventories  16.7
 (18.1) (15.9) —
  28.3
(Increase)/decrease in trade and other receivables  (1.6) (8.8) 64.3
 —
  (8.5)
Increase/(decrease) in trade and other payables  18.1
 60.8
 (44.0) 0.7
  (41.0)
Decrease in employee benefit and other provisions  (0.3) (3.3) (1.5) —
  (2.0)
Cash generated from operations before tax and exceptional items  358.5
 356.2
 159.2
 0.2
  102.2

Overall risk management policy
33)Financial risk management

a)Overall risk management policy
The Company’s activities expose it to a variety of financial risks, including currency risk, interest rate risk, credit risk and liquidity risk.
The Company’s overall risk management program focuses on minimizing potential adverse effects on the Company’s financial performance. TheWhere appropriate, the Company uses derivative financial instruments to hedge certain risk exposures.
F-62

Risk management is led by senior management and executed according to Company policy. All hedging activity is mainly carried out by a central treasury department which identifies,that evaluates and hedges financial risks in close cooperation withaccording to forecasts provided by the Company’s operating units.

Derivatives and hedging



Derivatives are used for economic hedging purposes and not as speculative investments. Where derivatives do not meet hedge accounting criteria, they are classified as 'fair value through profit or loss' for accounting purposes and are accounted for at fair value through profit or loss. They are presented as current assets or liabilities to the extent they are expected to be settled within 12 months after the end of the reporting period. The Company's derivative financial instruments are disclosed within Note 34.
b)Market risk (including currency risk and interest rate risk)
Hedge accounting is applied to remove the accounting mismatch between the hedging instrument and the hedged item. The effective portion of the change in the fair value of the hedging instrument is accounted for in the translation reserve or cash flow hedge reserve through Other Comprehensive Income and will be recognized in profit or loss in the same period as the hedged item. Movements in the Company's translation reserve and cash flow hedging reserve are presented in Notes 28 and 29 respectively. The Company's accounting policy for hedge accounting is disclosed within Note 3.
In managing market risks,creating cash flow hedges over U.S. Dollar debt, the Company aimsenters into cross currency hedging arrangements with matching critical terms as the hedged item, such as reference rate, reset dates, payment dates, and notional amount.
On July 29, 2021 the Company extended its CCIRS used to minimizehedge the impactforeign currency and interest rate risk on its previous Senior USD Loan from May 2022 to May 2024 to align with the maturity date of short term fluctuations onthe USD Term Loan. As part of the transaction, the EUR fixed rate paid by the Company was amended and reflected in the underlying interest cost. The transaction was considered to be a substantial modification of the hedging instruments, so is considered to be a new hedging relationship which will give rise to some ineffectiveness in future periods. CCIRS contracts that were previously used as a net investment hedge of the Company’s earnings. Overinvestments in Pound Sterling were also extinguished. A change in fair value of the longer term, however, permanent changesCCIRS arose as a consequence of the transaction, which the Company elected to write-off immediately as a cost of extinguishment. This non-cash loss of €6.8 million, as well as the write-off of the cost of hedging reserves associated with the discontinued net investment hedge, were presented as a one-off charge for the transaction as disclosed in foreign exchange rates andNote 10. The cash flow hedge reserve related to the previous hedge relationship was then released on a straight line basis until May 2022.
As part of the extension of the cross currency interest rates will haverate swaps on July 29, 2021 the Company entered into off market derivatives with an impactembedded financing component. Amortization of the embedded financing component led to some ineffectiveness in the hedging relationship until they were closed out on consolidated earnings.November 8, 2022.
Currency riskForeign currency risk on assets and liabilities in currencies other than functional currency
DescriptionThe Company is exposed to foreign exchange risk arising from the translation of assets and liabilities denominated in currencies other than the Euro. This affects particularly Nomad’s U.S. Dollar loans andConcurrent to the refinancing of the Company's U.S. Dollar denominated Term Loans as detailed in Note 21, it closed out its existing cross currency interest rate swaps and Nomad's GBP loans and cross currency interest rate swaps.

The U.S. Dollar and GBP value of these liabilities is retranslated at closing exchange rates into Euro for inclusion in the financial statements. Fluctuations in the value of these liabilities are caused by variations in the closing EUR-USD and EUR-GBP exchange rates.

Prior to April 21, 2017, 80% of the Company's Pound Sterling loans were designated as net investment hedges against the Company's investment in its subsidiaries in the UK.  From April 21, 2017, the existing Sterling loans were settled and USD debt of $610 million was entered into. In order to match its underlying cash flows the Company has entered into a number of new 5-year cross-currency and interest rate swaps. In exchangeswaps for $610.0the new Term Loans. The cash flow hedge reserve associated with this hedging relationship on November 8, 2022 included unrealized gains of €45.6 million. As a portion of the U.S. Dollar interest rate cash-flows ($700.0 million of the $906.8 million) will continue to occur, the gains relating to this portion of €35.2 million was kept in the reserve and is being reclassified to the Statement of Profit or Loss in alignment to the original hedged cash flows, which end in May 2024. The remaining cash flow hedge reserve along with a portion of the cost of hedging reserve have been released to the Statement of Profit or Loss as presented in Note 10 as the hedged cash flows will no longer occur.
As at December 31, 2022, the Company received €570.5has $700.0 million which has been designated as cash flow hedges. Of the €570.5 million, €271.2 million was swapped to £226.7 million. 82.8% of the Company’s Pound SterlingU.S. Dollar SOFR floating rate debt. The Company uses cross currency interest rate swaps areto convert this into €700.6 million of debt with a fixed rate of interest and designated as a cash flow hedge.
In addition, the Company has interest rate swaps, where in exchange for receiving cash flows matching the payments of principal and interest due under the €130.0 million Senior EUR debt, the Company pays fixed amounts of interest and principal. These swaps have been designated as a cash flow hedge.
There was no material ineffectiveness during 2022 in relation to the cash flow hedges against the Company’s investment in its subsidiaries in the UK.


Mitigation & Impact onAny foreign exchange movement resulting from the translation of $610m term loan to Euros
Statement of Financialis offset with the translation of the receive U.S. Dollar, pay Euro cross currency interest rate
Position / Equity /swaps. Gains/losses on the cross currency interest rate swap are released from cash flow
Income Statementhedge reserve to match the gain or losses on the U.S. Dollar debt as they impact profit and loss.

From April 21, 2017, 82.8% of the Company’s Pound Sterlingusing cross currency interest rate swaps are designated as hedges against the Company’s investment in its subsidiaries in the UK. In 2016 and up until April 21, 2017 80%interest rate swaps.
The effects of the Company's Pound Sterling loans were designated as hedges againstcash flow hedging instruments on the Company's investment in its subsidiaries in the UK. As at December 31, 2017, this represented 93.1%financial position and performance are as follows:
F-63

All amounts stated in €m, unless otherwise statedDecember 31, 2022December 31, 2021
USD - cross currency interest rate swaps
Carrying amount of liability(56.6)(20.6)
Notional amount (USD)$700.0$916.4
Maturity date10/10/20275/15/2024
Change in fair value of outstanding hedging instruments since January 1(36.0)68.9 
Loss/(gain) in value of hedged item used to determine effectiveness36.0 (69.6)
Weighted average hedged rate of outstanding hedging instruments1.00 1.11 
All amounts stated in €m, unless otherwise statedDecember 31, 2022December 31, 2021
EUR - interest rate swaps
Carrying amount of liability(0.2)— 
Notional amount (EUR)€130.0—
Maturity date10/10/2027N/A
Change in fair value of outstanding hedging instruments since January 1(0.2)— 
Gain in value of hedged item used to determine effectiveness(0.2)— 
Weighted average hedged rate for the year (or since inception)6.7 %— %

The effects of the net assets held in GBP (2016: 99%).investment hedging instruments on the Company's financial position and performance are as follows:


All amounts stated in €m, unless otherwise statedDecember 31, 2022December 31, 2021
UK cross-currency interest rate swaps
Carrying amount of cross-currency interest rate swaps— — 
Notional amount (GBP)——
Maturity dateN/A7/29/2021
Change in fair value of cross-currency interest rate swaps as a result of foreign currency movements since January 1— (12.9)
Loss/(gain) in value of hedged item used to determine hedge effectiveness— 12.9 
Weighted average hedged rate for the year— 1.19 

The impact of the net investment hedge is taken directly to equity via the foreign currency translation reserve. The amount taken to this reserve whichthat arose on the retranslationtranslation of the notional component of cross currency interest rate swaps was nil (2021: €12.9 million loss).
In determining hedge effectiveness for a gain of €12.4 millionnet investment hedge, the economic relationship between hedging instrument and frombalance sheet exposure should be established including the translationnotional amount and currency of the GBP loans in place was a lossunderlying investment. Hedge ineffectiveness may arise due to the value of €4.3 million. In 2016 the amount taken to this reserve which arose onhedged item being less than the translationnotional value of Sterling loans was a €35.4 million gain, (2015: €6.8 million gain).the hedging instrument. There was no material ineffectiveness in the net investment hedge in either 20172022 or 2016.2021. The ineffective amount taken through the Consolidated Statements of Profit or Loss in 2022 amounted to nil (2021: nil). The Company's policy is to reduce its risk of foreign exchange movements on material operating cash flows in currencies other than the operating entity's functional currency using forward foreign exchange contracts designated as cash flow hedges. These forecast cash flows represent the hedged item and is subject to management assessment.

In order to qualify as a cash flow hedge, the hedging instrument must meet the requirements of IFRS 9, including alignment of the critical terms between the hedging instrument and hedged item. The group designates the forward component of forward contracts as the hedging instrument.
Hedge ineffectiveness may arise if the timing or amount of the forecast transaction changes from what was originally estimated, or if credit dominates the relationship between hedged item of hedging instrument. There was no material ineffectiveness during 2022 in relation to the forward foreign exchange contracts.

F-64

The effects of the foreign currency hedging instruments on the Company's financial position and performance are as follows:
As at December 31, 2022EUR/USDGBP/USDGBP/EURSEK/EURSEK/USDOther Currencies
€m€m€m€m€m€m
Derivative financial instruments - forward currency contracts
Carrying amount of asset4.4 2.0 6.4 2.4 0.5 0.5 
Notional amount288.6 44.3 194.9 58.2 9.8 45.9 
Fair value losses/(gains) of outstanding hedging instruments since January 16.2 (6.7)(9.0)(4.4)(0.6)(0.6)
Weighted average hedge rate for the year1.09 1.30 1.16 0.09 0.10 N/A

As at December 31, 2021EUR/USDGBP/USDGBP/EURSEK/EURSEK/USDOther Currencies
€m€m€m€m€m€m
Derivative financial instruments - forward currency contracts
Carrying amount of asset/(liability)17.5 1.2 (6.7)0.5 0.1 0.3 
Notional amount343.6 58.4 244.7 70.4 4.5 96.4 
Fair value (gains)/losses of outstanding hedging instruments since January 1(26.3)(0.5)12.0 (0.9)13.5 0.6 
Weighted average hedge rate for the year1.20 1.38 1.15 0.10 0.11 — 

Gains/losses in the year from foreign exchange swap contracts used for liquidity purposes designated as fair value through the Consolidated Statements of Profit or Loss amounted to a €0.2 million gain (2021: €0.6 million gain, 2020: €2.4 million loss).

Losses in the year from cross currency interest rate swap contracts designated as fair value through the Consolidated Statement of Profit or Loss amounted to a €0.1 million loss (2021: €14.3 million loss, 2020: €3.2 million loss).


Market risk (including foreign exchange and interest rate risk)
In managing market risks, the Company aims to minimize the impact of short term fluctuations on the Company’s earnings. Over the longer term, permanent changes in both foreign exchange rates and interest rates will have an impact on consolidated earnings.
Sensitivity analysisCurrency riskDuring 2017, the Euro strengthened by 3.9% (2016: strengthened by 13.8%) against Sterling.Foreign currency risk on assets and liabilities in currencies other than functional currency

Foreign Exchange
translation risk    The notional amountCompany is exposed to foreign exchange translation risk arising from the translation of Pound Sterlingassets and liabilities denominated in currencies other than the Euro. Key areas of foreign currency exposure include non-Euro debt and investments in subsidiaries not held in Euro. Company policy is to mitigate the potential foreign exchange translation risk by converting where appropriate, borrowings into Euro. This has been achieved on the Senior USD Loan through the use of cross currency interest rate swaps designated as hedges is £187.6m,a cash flow hedge. The Company also hedged translation exposure on consolidation of GBP net assets through the gainuse of €12.4 million resulted from a 5.8% movement in the GBP-EUR foreign exchange rate. A 1% movement in the GBP-EUR foreign exchange rate would result in a gain or loss of €2.2 million which would be taken to equity.
Hedge accounting is not applied to 17.2% of the Company's Pound Sterling cross currency interest rate swaps. A 1% movementswaps designated as a net investment hedge. The net investment hedge was discontinued when CCIRS contracts that were used as a net investment hedge of the Company’s investments in Pound Sterling were extinguished.
Mitigation & Impact on
Statement of Financial    Foreign exchange translation risk resulting from the GBP-EUR foreign exchangetranslation of non-Euro
Position    Denominated borrowings into Euros, to the extent that they are hedged will be mitigated by the translation of the underlying cross currency interest rate would result in a gain or loss of €0.4 million.



In addition, the impact on the related interest charge would be to decrease or increase the charge by €0.1 million, €0.1 million and €0.2 million for each 1% change in the exchange rate in 2017 and 2016 and 2015 respectively.

hedging arrangements.
F-65


Currency riskForeign currency risk on purchases
The Company is exposed to foreign exchange risk where a business unit makes purchaseshas material operating cash flows in a currency other than the functional currency of that entity.
ForThe most significant exposures for the Company the most significant of these exposures isare the purchase of fish inventoriesraw materials, stock and services purchased in U.S. Dollars and the purchaseEuros.

Mitigation & Impact on    The Company’s policy is to reduce this risk by using foreign exchange forward contracts
Statement of goods and services in Euros by the UK and the Nordics.Financial    that are designated as cash flow hedges.

Position / Equity    
Mitigation & Impact onThe Company’s policy is to reduce this risk by using foreign exchange forward contracts
Statement of Financialwhich are designated as cash flow hedges. These contracts all have a maturity of less
Position / Equity /than one year. The fair value of the U.S. Dollars forward contracts with reference to
Income Statementnon-USD functional currencies as at December 31, 2017 is an asset of €6.5 million (2016: €11.0 million asset). All forecast transactions are still expected to occur.
    
As at December 31, 2017, 69.8% (2016: 98%, 2015: 69%2022, the fair value of USD forward contracts entered into to hedge the future purchase of U.S. Dollars in EUR, GBP and SEK functional currency entities is an asset of €6.9 million (2021: €18.8 million asset). All forecast transactions are still expected to occur. As at December 31, 2022, 99.0% (2021: 95.1%) of forecast future U.S. Dollar payments forto the next twelve monthsend of 2023 were hedged through the use of forward contracts and existing cash. A proportion of theAll forward contracts have been designated as cash flow hedges.hedges and have a maturity within the next 12 months.

The fair value of the Euro forward contracts with reference to non-Euro functional currencies as at December 31, 20172022, is €1.5a liability of €9.7 million (2016: €1.1(2021: €5.9 million).

As at December 31, 2017, 68% (2016: 86.9%, 2015: 58%2022, 62.1% (2021: 77.2%) of forecast future net euroEuro payments forto the next twelve monthsend of 2023 were hedged through the use of forward contracts and existing cash. A proportion of theAll forward contracts have been designated as cash flow hedges over forecast purchases.and have a maturity within the next 12 months.

Sensitivity analysisDuring 2017, the Euro strengthened by 3.9% against Sterling, and strengthened by 13.9% against the U.S.Dollar and strengthened by 2.7% against the Swedish Krona.


On an annualized 2017 basis, for each 1% thatSensitivity analysis    The Company is sensitive to changes in primarily the Euro strengthens or weakens against Sterling,following currency pairs:
1) EUR/USD
2) GBP/EUR
3) SEK/EUR

These impact the valuation of our financial instruments. The table below illustrates the hypothetical sensitivity of the Company’s reported profit and closing equity to a 5% movement in the EUR/GBP, EUR/USD and EUR/SEK exchange rates at the reporting date, assuming all other variables remain constant,unchanged. This analysis is for illustrative purposes only, as in practice the foreign exchange rates rarely change in isolation. Figures are presented post-tax.

The analysis assumes that exchange rate fluctuations on foreign exchange derivatives that form part of an effective cash flow hedge relationship affect the cash flow hedge reserve in equity. For foreign exchange derivatives which are not designated hedges, movements in exchange rates impact relating to these purchases would be tothe Income Statement.

Positive figures represent an increase or decrease the Company’sin profit or loss before tax by approximately €0.7 million (2016: €0.6 million, 2015: €0.5 million), excludingequity.
Profit or lossEquity
2022202120222021
€m€m€m€m
5% increase in the value of the Euro against Pound Sterling (2021: 1%)(1.9)— (6.8)1.5 
5% increase in the value of the Euro against U.S. Dollar (2021: 1%)(2.0)— (10.8)(2.0)
5% increase in the value of the Euro against Swedish Krona (2021: 1%)(2.5)(0.4)2.1 0.4 

A 5% decrease in the impactvalue of any forward contracts.

On an annualized 2017 basis, for each 1% that the Euro strengthens or weakens against the U.S.Dollar, assuming all other variables remain constant, the impact would be to increase or decrease the Company’s profit or loss before tax by approximately €2.4 million (2016: €2.2 million, 2015: €2.2 million), excluding the impact of any forward contracts.

On an annualized 2017 basis, for each 1% that the Euro strengthens or weakens against Swedish Krona, assuming all other variables remain constant, the impact relating to these purchases would be to increase or decrease the Company’s profit or loss before tax by approximately €0.7 million (2016: €0.4 million, 2015: €0.5 million), excluding the impact of any forward contracts.

We do not expect purchase levels to be materially differentcurrencies identified in the coming year.table above would result in a equal and opposite movement to the values disclosed in the table above. This analysis is for illustrative purposes.









F-66

Interest rate risk
DescriptionThe Company has significant levels of floatingInterest rate borrowings and is therefore exposed to the impact of interest rate fluctuations.risk

Description    The Company is exposed to changes in interest rates to the extent that it enters into floating rate borrowings, including the senior loans.

Mitigation & Impact on
Equity / Income StatementThe Company’s policy on interest rate risk is designed to limit the Company’s exposure to fluctuating interest rates. In 2017 the Company entered into a €400 million 7 year fixed rate Bond, floating rate senior Euro debt of €500 million and floating rate senior USD of $610 million. The company also entered into cross currency interest rate swaps to swap its floating USD term loans to fixed Euros or Sterling.
Equity / Income The Company’s policy on interest rate risk is to mitigate the Company’s exposure to fluctuations
Statement    in interest rates.

    As a result of decisions taken by national regulators, GBP LIBOR and certain USD LIBOR time periods were phased out in 2021 and replaced by alternative reference indexes (SONIA and SOFR). The new reference rate is reflected in the Company’s latest issuance of U.S. Dollar term loan and related cross currency interest rate swaps, which use SOFR as the benchmark.

There are no current plans to phase out EURIBOR. If EURIBOR ceases to exist, we will need to renegotiate the interest rate payable on Euro denominated portion of our Senior Facilities Agreement with our lenders. Our expectation is that both debt agreements and hedging contracts will be aligned to the new benchmarks as they become known, and as such it is highly probable that the existing hedging relationships can be continued.
    
Sensitivity analysis    During 20172022, six month EURIBOR rates increased from zero to 2.7% (2021: remained below zero). Within the weighted average fixed rateEuro denominated senior loans, there is a EURIBOR floor of the Company's interest cash flows in Sterling was 65.8% (2016: 157%) and the weighted average fixed rate of the Company's Euro interest cash flows was 38.9% (2016: 66%)0%. As at December 31, 2017 this was 100% and 58.3% respectively.

Sensitivity analysisIn 2017, one month GBP LIBOR rates increased by 0.25 percentage points (2016: 0.25 percentage points decrease) and there were no significant changes in three month EURIBOR rates (2016: decreased by 0.15 percentage points). Negative interest rates are treated as 0% for the purpose of the interest applied on the senior loans.


If interest rates were greater thanto move by 1%, an increase or decrease of one percentage point in the interest rate charge on borrowingsthis would have a correspondingly decrease or increase in the Company’s profit/(loss) before tax by approximately €5.1 million (2016: €14.8 million, 2015: €14.5(2021: €2.6 million)., subject to the EURIBOR floor of 0% and after taking into consideration the portion of the borrowings that are on fixed interest rate or are synthetically converted into fixed interest rate using interest rate derivatives.


c)Credit risk
DescriptionCredit risk arises on cash and cash equivalents and derivative financial instruments with banks and financial institutions, as well as on credit exposures to customers. See Note 18 for analysis of the trade receivables balance and Note 20 for analysis of the cash and cash equivalents balance.
MitigationThe Company limits counterparty exposures by monitoring each counterparty carefully and where possible, setting credit limits by reference to published ratings. The Company limits its exposure to individual financial institutions by spreading forward foreign exchange contracts, cross currency interest rate swaps and surplus cash deposits between several institutions.
Credit risk

Description    Credit risk arises on cash and cash equivalents, derivative financial instruments with banks and financial institutions, any short term investments, as well as on credit exposures to customers. See Note 18 for analysis of the trade receivables balance and Note 20 for analysis of the cash and cash equivalents balance. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial assets.
Mitigation    The Company limits counterparty exposures by monitoring each counterparty carefully and where possible, sets credit limits according to approved treasury policy. The Company limits its exposure to individual financial institutions by diversification of exposure across a range of financial institutions.
The credit quality of customers is assessed taking into account their financial position, past experience and other factors. Credit limits are set for customers and regularly monitored.monitored to mitigate ongoing payment risk.

Liquidity risk
Description    The Company aimsis exposed to ensurethe risk that it is unable to meet its commitments as they fall due. The Company has financial conditions, including financial covenants as part of the maximum exposureSenior debt arrangements which it must comply with in order to one financial institution does not exceed €150.0maintain its current level of borrowings. There have been no breaches of the covenants throughout the year.
Mitigation    The Company ensures that it has sufficient cash and available funding through regular cash flow and covenant forecasting. The Company uses liquidity swaps to manage timing of cash flows in non-functional currencies. These swaps are accounted for as FVTPL. In addition, the Company has access to a revolving credit facility of €175.0 million, expiring in June 2026. This is available for general corporate purposes. Currently €1.8 million is utilized for letters of credit, overdrafts, customs bonds and that the long term credit rating does not fall below High Single A.bank guarantees.

F-67
d)Liquidity risk
DescriptionThe Company is exposed to the risk that it is unable to meet its commitments as they fall due. The Company has financial conditions imposed by its lenders which it must achieve in order to maintain its current level of borrowings. A single net debt covenant is carried out quarterly and at the end of each financial year. There have been no breaches of the covenants throughout the year.
MitigationThe Company ensures that it has sufficient cash and available funding through regular cash flow and covenant forecasting. In addition, the Company has access to a revolving credit facility of €80.0 million, expiring in May 2023. This is available to finance working capital requirements and for general corporate purposes. Currently €14.0 million is utilized for letters of credit, overdrafts, customer bonds and bank guarantees.




Capital risk management
Nomad’s
The objective of the Company when considering total capital is to protect the value of capital investments and to generate returns on shareholder funds. Total capital is defined as including Loans and Borrowings and equity, including derivatives used for the purpose of hedging currency and interest exposure on Loans and Borrowings, but excluding the cash flow hedging reserve.

In support of its objectives, when managingthe Company may undertake actions to adjust its capital (currently consistingstructure accordingly. Actions may include, but not limited to, raising or prepayment of Borrowings together with related derivative instruments, issuance of additional share capital, andpayment of dividends or share premium) arerepurchase programs.
Maturity analysis
The USD senior loan includes the annual requirement to safeguard Nomad’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintainrepay 1% of the original issued notional of $7.0 million (€6.6 million) beginning October 2023 (2021: €8.7 million) In addition, the Senior Facilities Agreement also includes an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, Nomad may adjust theexcess cash flow calculation whereupon an amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
Maturity analysisprincipal shall be repaid based upon terms including cash generated and leverage. Based upon the calculation as at December 31, 2022, no excess cash flow will be repayable in 2023 (2021: nil repayable in 2022).
The tables below show a maturity analysis of contractual undiscounted cash flows prepared using forward interest rates where applicable, showing items at the earliest date on which the Company could be required to pay the liability:
202220232024202520262027Over 5 yearsTotal
€m€m€m€m€m€m€m
Borrowings-principal6.6 6.6 6.6 6.6 6.6 2,107.1 2,140.1 
Borrowings-interest103.0 117.3 107.5 105.2 104.8 160.5 698.3 
Forward contracts Sell623.6 — — — — — 623.6 
Forward contracts Buy(641.7)— — — — — (641.7)
Cross Currency Interest Rate Swaps Pay50.5 54.2 53.6 53.1 718.2 — 929.6 
Cross Currency Interest Rate Swaps Receive(58.9)(59.9)(53.2)(51.8)(675.3)— (899.1)
Interest Rate Swaps Pay8.1 8.9 8.8 8.8 8.8 — 43.4 
Interest Rate Swaps Receive(7.7)(9.4)(8.8)(8.7)(8.7)— (43.3)
Lease Liabilities22.1 12.9 8.1 6.4 3.3 19.9 72.7 
Trade and other payables excluding non-financial liabilities652.2 — — — — — 652.2 
Total757.8 130.6 122.6 119.6 157.7 2,287.5 3,575.8 
F-68

20172018 2019 2020 2021 2022 Over 5 years Total
2021202120222023202420252026Over 5 yearsTotal
€m €m €m €m €m €m €m€m€m€m€m€m€m€m
Borrowings-principal5.1
 5.1
 5.1
 5.1
 5.1
 1,384.0
 1,409.5
Borrowings-principal8.5 8.5 791.7 — — 1,353.2 2,161.9 
Borrowings-interest46.3
 46.0
 46.0
 45.7
 45.5
 62.9
 292.4
Borrowings-interest57.5 63.5 50.4 34.0 34.1 67.0 306.5 
Forward contracts Sell484.0
 —
 —
 —
 —
 —
 484.0
Forward contracts Sell805.3 — — — — — 805.3 
Forward contracts Buy(479.6) —
 —
 —
 —
 —
 (479.6)Forward contracts Buy(818.0)— — — — — (818.0)
Cross Currency Interest Rate Swaps Pay29.1
 28.7
 28.6
 28.4
 801.4
 —
 916.2
Cross Currency Interest Rate Swaps Pay25.0 24.9 818.5 — — — 868.4 
Cross Currency Interest Rate Swaps Receive(32.0) (31.6) (31.4) (31.2) (759.3) —
 (885.5)Cross Currency Interest Rate Swaps Receive(30.8)(38.0)(808.0)— — — (876.8)
Lease LiabilitiesLease Liabilities23.1 18.2 11.2 7.3 5.6 25.2 90.6 
Trade and other payables excluding non-financial liabilities441.6
 —
 —
 —
 —
 —
 441.6
Trade and other payables excluding non-financial liabilities647.1 — — — — — 647.1 
Total494.5
 48.2
 48.3
 48.0
 92.7
��1,446.9
 2,178.6
Total717.7 77.1 863.8 41.3 39.7 1,445.4 3,185.0 

34)Financial instruments
20162017 2018 2019 2020 2021 
Over 5 years

 Total
 €m €m €m €m €m 
€m

 €m
Borrowings-principal—
 —
 —
 1,464.2
 —
 —
 1,464.2
Borrowings-interest59.7
 60.0
 60.9
 29.9
 —
 —
 210.5
Forward contracts Sell367.8
 —
 —
 —
 —
 —
 367.8
Forward contracts Buy(381.3) —
 —
 —
 —
 —
 (381.3)
Trade and other payables excluding non-financial liabilities

439.1
 —
 —
 —
 —
 —
 439.1
Total485.3
 60.0
 60.9
 1,494.1
 —
 —
 2,100.3
The 2016 table has been amended to include the Forward contract Buy amount.
34)Financial instruments
 
a)Categories of financial instruments
Categories of financial instruments
The following table shows the carrying amount of each Statement of Financial Position class split into the relevant category of financial instrument as defined in IAS 39 “Financial Instruments: Recognition & Measurement”IFRS 9 'Financial Instruments'.

Financial assets at amortized costFinancial Assets at Fair Value through profit or lossDerivatives designated in hedge relationshipsFinancial
liabilities at
amortized cost		Total
2022€m€m€m€m€m
Assets
Trade and other receivables230.8 — — — 230.8 
Derivative financial instruments— — 20.1 — 20.1 
Cash and cash equivalents330.0 39.7 — — 369.7 
Liabilities
Trade and other payables excluding non-financial liabilities— — — (652.2)(652.2)
Derivative financial instruments— — (60.3)— (60.3)
Loans and borrowings (1)— — — (2,206.8)(2,206.8)
Total560.8 39.7 (40.2)(2,859.0)(2,298.7)

 Cash and cash equivalents Loans and
receivables		 
Derivatives at
fair value
through profit
or loss
 
Derivatives
used for
hedging (see
(c))
 
Financial
liabilities at
amortized cost
 Total
2017€m €m €m €m €m €m
Assets           
Trade receivables—
 94.7
 —
 —
 —
 94.7
Derivative financial instruments—
 —
 3.2
 17.5
 —
 20.7
Cash and cash equivalents219.2
 —
 —
 —
 —
 219.2
Liabilities
 
        
Trade and other payables excluding non-financial liabilities—
 —
 —
 —
 (441.6) (441.6)
Derivative financial instruments—
 —
 (0.7) (68.5) —
 (69.2)
Loans and borrowings (note 1)—
 —
 —
 —
 (1,409.5) (1,409.5)
Total219.2
 94.7
 2.5
 (51.0) (1,851.1) (1,585.7)
Note 1:(1) Loans and borrowings excludes €11.1€41.9 million of deferred capitalized debt discounts borrowing costs which are included within €1,398.4 €2,164.9 million of total loans and borrowings in Note 21.
 
F-69

Financial assets at amortized costDerivatives at
fair value
through profit
or loss		Derivatives designated in hedge relationshipsFinancial
liabilities at
amortized cost		Total
Cash and cash equivalents Loans and
receivables		 Derivatives at
fair value
through profit
or loss		 Derivatives
used for
hedging (see
(c))		 Financial
liabilities at
amortized cost		 Total
2016€m €m €m €m €m €m
20212021€m€m€m€m€m
Assets           Assets
Trade receivables—
 92.3
 —
 —
 —
 92.3
Trade and other receivablesTrade and other receivables201.6 — — — 201.6 
Derivative financial instruments—
 —
 —
 13.1
 —
 13.1
Derivative financial instruments— 0.5 19.7 — 20.2 
Cash and cash equivalents329.5
 —
 —
 —
 —
 329.5
Cash and cash equivalents254.2 — — — 254.2 
Liabilities
 
        Liabilities— 
Trade and other payables excluding non-financial liabilities

—
 —
 —
 —
 (439.1) (439.1)Trade and other payables excluding non-financial liabilities— — — (647.1)(647.1)
Derivative financial instruments—
 —
 —
 (1.4) —
 (1.4)Derivative financial instruments— (0.1)(28.0)— (28.1)
Loans and borrowings (note 2)—
 —
 —
 —
 (1,464.2) (1,464.2)
Loans and borrowings (2)Loans and borrowings (2)— — — (2,236.8)(2,236.8)
Total329.5
 92.3
 —
 11.7
 (1,903.3) (1,469.8)Total455.8 0.4 (8.3)(2,883.9)(2,436.0)
Note 2:
(2) Loans and borrowings excludes €12.4excludes €9.4 million of deferredcapitalized borrowing costs which are included within €1,451.8€2,227.4 million ofof total non-current loans and borrowings in Note 21.


b)Fair values
Fair values
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, Nomad uses various methods including market, income and cost approaches. Based on these approaches, Nomad utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs may be readily observable, market corroborated, or generally unobservable inputs. Nomad utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques Nomad is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values.
Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:
Level 1—Quoted prices for identical assets and liabilities traded in active exchange markets, such as the New York Stock Exchange.


Level 2—Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data. Level 2 also includes derivative contracts whose value is determined using a pricing model with observable market inputs or can be derived principally from or corroborated by observable market data.
Level 3—Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs for nonbindingnon binding single dealer quotes not corroborated by observable market data. Where market information is not available to support internal valuations, reviews of third party valuations are performed.
While Nomad believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.
The following is a description of the valuation methodologies and assumptions used for estimating the fair values of financial instruments held by the Company.


(i)Derivative financial instruments
(i)Derivative financial instruments
Derivative financial instruments are held at fair value. There is no difference between carrying value and fair value. The financial instruments are not traded in an active market and so the fair value of these instruments is determined from the implied forward rate. The valuation technique utilized by the Company maximizes the use of observable market data where it is available. All significant inputs required to fair value the instrument are observable. The Company has classified its derivative financial instruments as level 2 instruments as defined in IFRS 13 ‘Fair value measurement’.
Gains in the year from foreign exchange forward contracts designated as fair value through the Consolidated Statements of Profit or Loss amounted to €nil (2016: €1.0 million, 2015: €9.1 million).
Gains in the year from foreign exchange swap contracts used for liquidity purposes designated as fair value through the Consolidated Statements of Profit or Loss amounted to €3.5 million (2016: €4.3 million loss, 2015: €nil).
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Gains in the year from cross currency interest rate swap contracts designated as fair value through the Consolidated Statement of Profit or Loss amounted to €3.9m (2016: €nil, 2015: €nil).(ii)Trade and other payables/receivables

(ii)Trade and other payables/receivables
The notional amount of trade and other payables/receivables are deemed to be carried at fair value, short term and settled in cash.
 
(iii)Cash and cash equivalents/overdrafts
(iii)Cash and cash equivalents
The carrying value of cash and cash equivalents is deemed to equal fair value.

(iv)Short-term investments
Short-term investments are valued using inputs that are derived principally from or corroborated by observable market data. The Company has classified these as level 2 instruments as defined in IFRS 13 “Fair value measurement”.

(v)Interest bearing loans and liabilities
The fair value of secured notes is determined by reference to price quotations in the active market in which they are traded. They are classified as level 1 instruments. The fair value of the senior loans is calculated by discounting the expected future cash flows at the year end’s prevailing interest rates. They are classified as level 2 instruments.


 Fair value Carrying value
 Dec 31, 2017 Dec 31, 2016 Dec 31, 2017 Dec 31, 2016
 €m €m €m €m
Senior loans—
 970.3
 —
 964.2
2020 floating rate senior secured notes—
 505.2
 —
 500.0
Senior EUR/USD loans1,012.7
 —
 1,009.5
 —
2024 fixed rate senior secured notes412.2
 —
 400.0
 —
Less deferred borrowing costs—
 —
 (11.1) (17.4)
 1,424.9
 1,475.5
 1,398.4
 1,446.8

c)Derivatives
The notional principal amounts of the outstanding forward foreign exchange contracts at December 31, 2017 were €484.0 million (December 31, 2016: €367.8 million). The notional principal amounts of the outstanding cross currency interest rate swaps as at December 31, 2017 were €826.2 million (pay) and €780.7 million (receive). The following table presents There is no requirement to determine or disclose the fair value of derivatives as at December 31, 2017. 43.4% (December 31, 2016: 68.9%) of the notional principal amount of forward foreign exchange contracts relates to USD contracts and 26.0% (December 31, 2016: 22%) of the notional principal amount of forward foreign exchange contracts relates to EUR contracts for the UK and Nordic subsidiaries. 30.6% of the notional principal amount of forward foreign exchange contracts relates to FX swaps for liquidity purposes.lease liabilities.

 As at Dec 31, 2017 As at Dec 31, 2016
 €m €m
Cross Currency Interest Rate Swaps18.6
 —
Forward foreign exchange contracts2.1
 13.1
Total assets20.7
 13.1
Cross Currency Interest Rate Swaps(61.4) —
Forward foreign exchange contracts(7.8) (1.4)
Total liabilities(69.2) (1.4)
Total(48.5) 11.7

Fair valueCarrying value
December 31, 2022December 31, 2021December 31, 2022December 31, 2021
€m€m€m€m
Senior EUR/USD loans1,316.2 1,360.8 1,340.0 1,355.8 
Other external debt0.2 0.1 0.2 0.1 
2028 fixed rate senior secured notes681.2 802.6 800.0 800.0 
Less capitalized debt discounts and borrowing costs— — (41.9)(9.4)
1,997.6 2,163.5 2,098.3 2,146.5 

Derivatives
As at December 31, 2022As at December 31, 2021
€m€m
Interest Rate Swaps0.2 — 
Forward foreign exchange contracts19.9 20.2 
Total assets20.1 20.2 
Cross Currency Interest Rate Swaps(56.6)(20.6)
Forward foreign exchange contracts(3.7)(7.3)
Total liabilities(60.3)(27.9)
Total(40.2)(7.7)
Offsetting of derivatives
Derivative contracts are held under International Swaps and Derivatives Association (ISDA) agreements with financial institutions. An ISDA is an enforceable master netting agreement that permits the Company to settle net in the event of default.
The following table sets out the carrying amounts of recognized financial instruments that are subject to the above agreements.
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Gross amount
of financial
instruments as
presented upon
balance sheet		Related
financial
instruments
that are offset		Net amount
Gross amount
of financial
instruments as
presented upon
balance sheet
 
Related
financial
instruments
that are offset
 Net amount
As at Dec 31, 2017€m €m €m
As at Dec 31, 2022As at Dec 31, 2022€m€m€m
Derivatives - assets20.7
 (20.7) —
Derivatives - assets20.1 (12.2)7.9 
Derivatives - liabilities(69.2) 20.7
 (48.5)Derivatives - liabilities(60.3)12.2 (48.1)

Gross amount
of financial
instruments as
presented upon
balance sheet		Related
financial
instruments
that are offset		Net amount
As at Dec 31, 2021€m€m€m
Derivatives - assets20.2 (10.8)9.4 
Derivatives - liabilities(27.9)10.8 (17.1)


35)Commitments
 Gross amount
of financial
instruments as
presented upon
balance sheet		 Related
financial
instruments
that are offset		 Net amount
As at Dec 31, 2016€m €m €m
Derivatives - assets13.1
 (1.4) 11.7
Derivatives - liabilities(1.4) 1.4
 —
35)Operating leases
The Company leases certain buildings, plantFuture aggregate minimum contractual payments under non-cancellable service agreements and equipment under operating leases. The agreements do not share common characteristics across the Company.
Non-cancellable operating lease rentals relate to total future aggregate minimum lease paymentsfor short-lived and low-value assets are payable as follows:
As at December 31, 2022As at December 31, 2021
€m€m
Less than one year2.2 2.2 
Between one and three years2.1 4.1 
Between three and five years0.6 2.2 
More than five years0.2 0.2 
Total5.1 8.7 
 As at Dec 31, 2017 As at Dec 31, 2016
 €m €m
Less than one year17.8
 18.3
Between one and three years26.1
 29.6
Between three and five years17.8
 22.0
More than five years106.6
 109.7
Total168.3
 179.6

Non-cancellable operating leases relate to equipment, motor vehicles and land and buildings andThese agreements may be subject to contractual annual increases linked to inflation indices. The payments shown above exclude the impact of these contractual increases which cannot be reliably estimated.
Findus Sverige AB has a long lease for a factory and cold-store that expires in 2040. This accounts for €115.8 million of the lease payments. As explained in note 24, this lease has been identified as being onerous and so a provision of €72.5 million has been recognized in respect of the onerous part of the lease.
36)Capital commitments
36)Capital commitments
Capital expenditure contracted for at the end of the reporting period but not yet incurred is as follows:
As at December 31, 2022As at December 31, 2021
€m€m
Property, plant and equipment11.1 21.3 
Intangible assets11.2 1.7 
Total22.3 23.0 
 As at Dec 31, 2017 As at Dec 31, 2016
 €m €m
Property, plant and equipment3.0
 8.1
Intangible assets2.6
 5.4
Total5.6
 13.5

37)        Related parties
Founder Preferred Shares
Each of the Founder Entities holds 750,000 shares of Founder Preferred Shares issued at $10.00 per share. The Founder Preferred Shares were intended to incentivize the Founders to achieve Nomad’s objectives. In addition to providing long term capital, the Founder Preferredconverted into Ordinary Shares are structured to provide a dividend based on the future appreciation of the market value of the ordinary shares thus aligning the interests of the Founders with those of the holders of ordinary shares on a long term basis. The Founder Preferred Shares are also intended to encourage the Founders to grow Nomad following the Iglo Acquisition and to maximize value for holders of ordinary shares. On1-for-1 basis on January 12, 2016, the Company approved a 2015 Founder Preferred Share Dividend with respect to 2015 in an aggregate of 3,620,510 ordinary shares payable to the Founder Entities.


3, 2023.
The conditions of the Founder Preferred Shares Annual Dividend Amount for 2016in 2019 and 2020 were not met and consequently no Founder Preferred Share Dividend was approved for issue.further details relating to these dividends is set out in Note 27.
The conditions of the Founder Preferred Shares Annual Dividend Amount for 2017 were met. On December 29, 2017, the Company’s Board of Directors approved a share dividend of an aggregate of 8,705,890 ordinary shares calculated as 20% of the increase in the market price of our ordinary shares compared to 2015 dividend price of $11.4824 multiplied by Preferred Share Dividend Equivalent. The Dividend Price used to calculate the Annual Dividend Amount was $16.6516 (calculated based upon the volume weighted average price for the last ten consecutive trading days of 2017) and the ordinary shares underlying the Founder Preferred Share Dividend were issued on January 2, 2018.
F-72

Advisory Services Agreements
On June 15, 2015,Effective as of January 1, 2022, the Company entered into an Amended and Restated Advisory Services Agreement (the "Agreement") with Mariposa Capital ("Mariposa"), LLC, an affiliate of Mr. Franklin,Sir Martin, and TOMS Capital LLC ("TOMS"), an affiliate of Mr. Gottesman. Pursuant to the terms of the Amended and Restated Advisory Services Agreement, Mariposa Capital, LLC and TOMS Capital LLC provide high-level strategic advice and guidance to the Company. Under the terms of the Advisory Services Agreement, Mariposa Capital, LLC and TOMS Capital LLC are entitled to receive an aggregate annual fee equal to $2.0$4.0 million, payable in quarterly installments. This agreement expires on June 1st annually and will be automatically renewedThe initial Agreement is for one year, subject to automatic renewals for successive one-year terms unless any party notifies the other parties in writing of its intention not to renew the agreement no later than 90 days prior to the expiration of the term. The agreementAgreement may only be terminated by the Company upon a vote of a majority of its directors. In the event that the agreement is terminated by the Company, the effective date of the termination will be six6 months following the expiration of the initial term or a renewal term, as the case may be.
ExpensesTotal fees excluding reimbursed expenses incurred under the ordinary course of €130,454business of €1.9 million and €232,379 for certain travel costs of€1.9 million were paid to Mariposa Capital, LLC and TOMS Capital LLC respectively in the year ending December 31, 2017 were reimbursed2022 (year ended December 31, 2016: €153,1862021: €0.8 million and €233,627€0.8 million respectively).
During 2020, the Company entered into an agreement with a working capital solutions specialist to facilitate a program that provides our suppliers with the ability to receive advance payments from a third party credit institution as part of our ordinary course of business payables, in exchange for a discounted invoice amount. The working capital solutions specialist is owned in part by affiliates of JRJ Group (of which one of our then non-executive directors, Mr. Isaacs, is a founding partner) and TOMS. Amounts paid by the Company to the working capital solutions specialist related to setup during 2020 were less than €0.1 million and are not considered to be material to either party. Ongoing fees associated with this service are received by the working capital solutions specialist directly from our suppliers utilizing the service.
Directors and Key Management
All significant management decision making authority is vested within the Board of Directors and the executive team,Executive Team, therefore key management are considered to be the Directors and Executive Officers. Their remuneration has been disclosed in Note 9.
On September 11, 2017,Non-executive Directors continue to receive fees for their services as board members and to certain committees and are settled through payroll. Director fees are payable quarterly in arrears. Total Non-executive Director fees for the Company entered into an agreement to repurchase shares being sold in an underwritten secondary public offering by selling Shareholders, Pershing Square Capital Management, L.P. (“Pershing Square”)year ending December 31, 2022 was €0.3 million (year ended December 31, 2021: €0.4 million). See Note 25 for a description of the transaction.
As part of the sale of the Iglo Group to Nomad Foods Limited, former Executive Officer and Non-Executive Director, Paul Kenyon and former Executive Officer, Tania Howarth each acquired shares in Nomad Foods Limited from Birds Eye Iglo Group LP Inc. Mr. Kenyon acquired 37,060 shares and Ms. Howarth acquired 38,956 shares at a price of $10.50 (€9.71) per share which was deemed to be at fair value. On June 12, 2017, Nomad repurchased 9,779,729 of our shares beneficially owned by Permira Funds ("Permira Repurchase") at a purchase price of $10.75 (approximately €9.60) per share, which represents a 25% discount to the closing price of our ordinary shares on June 9, 2017, for an aggregate purchase price of $105.1 million (approximately €93.9 million), in final settlement of indemnity claims against an affiliate of Permira Funds, of legacy tax matters that predated the Iglo Acquisition. In connection with the Permira Repurchase (and upon removal of certain transfer restrictions relating to their shares), Mr. Kenyon and Ms. Howath sold 26,372 and 27,721, shares, respectively.
Lord Myners of Truro CBE, a Non-Executive Director, holds 72,028 ordinary shares in Nomad Foods Limited which includes 50,000 ordinary shares granted pursuant to a five-year option that expires on June 2, 2020 at a purchase price of $11.50 per share.
As described in Note 8(b), certain of the Non-Executive Directors are also eligible to an annual restricted stock grant issued under the LTIP which will vest on the earlier to occur of the date of the Company’s annual meeting of shareholders or thirteen months from the date of grant.


The Non-Executive Directors Details of the annual restricted share awards, granted at a share price of $11.50 on December 7, 2015, vested on June 16, 2016 and were issuedstock grants under the LTIP can be found in July at a share price of $8.98. Of the total 34,780 number of shares vesting, 11,568 shares were held back from issue by the Company as settlement towards personal tax liabilities arising on the vested shares. The total charge for restricted share awards granted in 2015 within the Statement of Consolidated Profit or Loss for the year ended December 31, 2016 for this stock compensation award was €0.3 million (nine months ended December 31, 2015: €0.1 million).
The Non-Executive Directors restricted share awards granted on June 16, 2016, which consisted of 55,680 shares at a share price of $8.98, vested on June 19, 2017 and were issued at a share price of $14.38, resulting in a €0.3 million increase in the share based compensation reserve. Of the total 55,680 number of shares vesting, 9,384 shares were held back from issue by the Company as settlement towards personal tax liabilities arising on the vested shares. The total charge for restricted share awards granted in 2016 within the Statement of Consolidated Profit or Loss for the year ended ended December 31, 2017 for this stock compensation award was €0.5 million (year ended December 31, 2016 : €0.3 million).
On June 19, 2017, Non-Executive Directors were granted 41,724 restricted share awards at a share price of $14.38. On August 22, 2017, two new Non-Executive Directors were granted a pro-rata 11,774 restricted share awards at the same share price and vesting conditions as the previous grant. The total charge for restricted share awards granted in 2017 within the Statement of Consolidated Profit or Loss for the year ended ended December 31, 2017 for this stock compensation award was €0.4 million.
The total charge for Non-Executive Director grants within the Statement of Consolidated Profit or Loss for the year ended December 31, 2017 for stock compensation awards was €0.8 million (Year ended December 31, 2016: €0.6 million; Nine months ended December 31, 2015: €0.1 million)Note 8(b).
As part of its long term incentive initiatives, the companyCompany has 4,927,0002,699,157 restricted shares outstanding to the management team (the “Management Share Awards”). The Directors and Executive Officers have all been awarded shares. The associated performance metrics and valuation method is detailed in Note 8(b).


38)    Significant events after the Statement of Financial Position date

None.
On December 29, 2017, we approved a 2017 Founder Preferred Share Dividend in an aggregate of 8,705,890 ordinary shares. The dividend price used to calculate the 2017 Founder Preferred Shares Annual Dividend Amount was $16.6516 (calculated based upon the volume weighted average price for the last ten trading days of 2017) and the Ordinary Shares were issued on January 2, 2018.
F-73
On January 17, 2018 we entered into an agreement to acquire Green Isle Foods Ltd. including the Goodfella's and San Marco brands, in an all cash deal valued at £200 million (approximately €225 million). We anticipate this acquisition to be completed in the second quarter of 2018 and we expect this will enlarge our portfolio of brands to include the number one and number two market share positions within the frozen pizza category in Ireland and the UK, a successful frozen private label pizza business, and two frozen pizza manufacturing facilities. The purchase price of the acquisition is expected to be funded through cash on hand.

In 2016, we announced the closure of our factory and pea processing operations in Bjuv, Sweden, and operations ceased in the first half of 2017 with production transferred to other factories in the Group’s network. In early 2018, we signed an agreement with Foodhills AB who will acquire the buildings and parts of the premises with the intention to develop a food production area. Legal handover of the site is scheduled for March 1, 2018. The purchase price could be up to 85 million SEK (approximately €8.6 million), but is subject to liabilities and warranties in the framework of the transaction.Item 19.    Exhibits



Item 19.Exhibits
The following exhibits are filed as part of this annual report:
EXHIBIT INDEX
Incorporation by Reference
Exhibit 
No.		Exhibit DescriptionFormExhibit 
No.		Period
Covered or
Date of
Filing		Filed with
this
Annual
Report
1.1
Amended and Restated Memorandum and Articles of Association.6-K (001-37669)99.11/14/2016
2.1
Registration Rights Agreement dated as of June 1, 2015 among Nomad Holdings Limited, Birds Eye Iglo Limited Partnership Inc, Mariposa Acquisition II, LLC, TOMS Acquisition I LLC, TOMS Capital Investments LLC and funds managed by Pershing Square.F-1 (333-208181)4.111/24/2015
2.2
Indenture dated as of May 3, 2017 among Nomad Foods Bondco PLC, Nomad Foods Limited, Deutsche Trustee Company Limited, Deutsche Bank AG, London Branch, Deutsche Bank Luxembourg S.A., and Credit Suisse AG, London Branch and the Subsidiary Guarantors named therein.6-K (001-37669)99.35/3/2017
2.3
Description of Securities.X
4.1
Share Sale and Purchase Agreement, dated as of October 29, 2015, among Liongem Sweden 1 AB, Iglo Foods Group Limited and Nomad Foods LimitedF-1 (333-208181)2.211/24/2015
4.2
Intercreditor Agreement, originally dated as of July 3, 2014, as amended and restated from time to time including, pursuant to the 2017 Amendment and Restatement Agreement among Nomad Foods Limited, Credit Suisse AG, London Branch, Deutsche Bank Company Limited and certain entities named therein.6-K (001-37669)99.25/3/2017
4.3
Amendment and Restatement Agreement, dated November 8, 2022, relating to A Senior Facilities Agreement, originally dated July 3, 2014, as amended and/or restated from time to time, including pursuant to Amendment and Restatement Agreement dated December 20, 2017 and June 15, 2018 for Nomad Foods Limited with Credit Suisse AG, London Branch.6-K (001-37669)99.111/10/2022
4.4
Nomad Foods Limited Amended and Restated Long-Term 2015 Incentive Plan.20-F (001-37669)4.42/27/2020
4.5
Nomad Foods Limited Long Term 2015 Incentive Plan Restricted Share Unit Agreement.20-F (001-37669)4.52/27/2020
4.6
Amended and Restated Service Agreement between the Company and Stéfan Descheemaeker, dated May 1, 2020.6-K
(001-37669)		99.15/5/2020
4.7
Service Agreement, dated as of February 15, 2018, between the Company and Samy Zekhout.20-F
(001-37669)		4.73/22/2018
4.8
Amended and Restated Advisory Services Agreement, dated as of January 1, 2022, among Nomad Foods Limited, Mariposa Capital, LLC and TOMS Capital LLC.20-F
(001-37669)		4.8A3/3/2022
8.1
List of Significant Subsidiaries.X
10.1
Form of Indemnification AgreementSC TO-I
(005-89365)
(d)(E)


8/11/2020
F-74

    Incorporation by Reference  
Exhibit 
No.
 Exhibit Description Form 
Exhibit 
No.
 
Period
Covered or
Date of
Filing
 
Included in
this
Annual
Report
1.1
 Amended and Restated Memorandum and Articles of Association 6-K (001-37669) 99.1 1/14/2016  
2.1
 Registration Rights Agreement dated as of June 1, 2015 among Nomad Holdings Limited, Birds Eye Iglo Limited Partnership Inc, Mariposa Acquisition II, LLC, TOMS Acquisition I LLC, TOMS Capital Investments LLC and funds managed by Pershing Square. F-1 (333-208181) 4.1 11/24/2015  
2.2
 Indenture dated as of May 3, 2017 among Nomad Foods Bondco PLC, Nomad Foods Limited, Deutsche Trustee Company Limited, Deutsche Bank AG, London Branch, Deutsche Bank Luxembourg S.A., and Credit Suisse AG, London Branch and the Subsidiary Guarantors named therein. 6-K (001-37669) 99.3 5/3/2017  
4.1
 Share Sale and Purchase Agreement, dated as of October 29, 2015, among Liongem Sweden 1 AB, Iglo Foods Group Limited and Nomad Foods Limited F-1 (333-208181) 2.2 11/24/2015  
4.2
 Senior Facilities Agreement, originally dated July 3, 2014, as amended and restated from time to time including pursuant to the 2017 Amendment and Restatement Agreement for Nomad Foods Limited with Credit Suisse AG, London Branch, Deutsche Bank AG, London Branch, Goldman Sachs Bank USA and UBS Limited. 6-K (001-37669) 99.1 5/3/2017  
4.3
 Intercreditor Agreement, originally dated as of July 3, 2014, as amended and restated from time to time including, pursuant to the 2017 Amendment and Restatement Agreement among Nomad Foods Limited, Credit Suisse AG, London Branch, Deutsche Bank Company Limited and certain entities named therein. 6-K (001-37669) 99.2 5/3/2017  
4.4
 Senior Facilities Agreement, originally dated July 3, 2014, as amended and restated from time to time including pursuant to the December 2017 Amendment and Restatement Agreement for Nomad Foods Limited with Credit Suisse International, Deutsche Bank AG, London Branch, Goldman Sachs Bank USA, UBS Limited and Credit Suisse AG, London Branch. 6-K (001-37669) 99.1 12/20/2017  
4.5
 Nomad Foods Limited Long-Term 2015 Incentive Plan F-1 (333-208181) 10.2 11/24/2015  
4.6
 Service Agreement between the Company and Stéfan Descheemaeker. F-1 (333-208181) 10.3 11/24/2015  
4.7
 Service Agreement, dated as of February 15, 2018, between the Company and Samy Zekhout.       X
4.8
 Contract of Employment, dated as of September 4, 2015, between the Company and Paul Kenyon F-1 (333-208181) 10.4 11/24/2015  
4.9
 Contract of Employment, dated as of January 5, 2007, between Tania Howarth and the Company, and related Letter Agreement 
20-F 
(001-37669)
 4.9
 4/1/2016  


Incorporation by Reference
Exhibit 
No.		Exhibit DescriptionFormExhibit 
No.		Period
Covered or
Date of
Filing		Filed with
this
Annual
Report
12.1
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.X
12.2
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.X
13.1
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.X
13.2
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.X
15.1
Consent of PricewaterhouseCoopers LLPX
101.INSXBRL Instance DocumentX
101.SCHXBRL Taxonomy Extension Schema DocumentX
101.DEFXBRL Taxonomy Extension Definition Linkbase DocumentX
101.CALXBRL Taxonomy Extension Calculation Linkbase DocumentX
101.LABXBRL Taxonomy Extension Label Linkbase DocumentX
101.PREXBRL Taxonomy Extension Presentation Linkbase DocumentX
F-75
    Incorporation by Reference  
Exhibit 
No.
 Exhibit Description Form 
Exhibit 
No.
 
Period
Covered or
Date of
Filing
 
Included in
this
 Annual
Report
4.10
 Advisory Services Agreement, dated as of June 15, 2015, among Nomad Foods Limited, Mariposa Capital, LLC and TOMS Capital LLC F-1 (333-208181) 10.5 11/24/2015  
8.1
 List of Significant Subsidiaries       X
12.1
 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer       X
12.2
 Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer       X
13.1
 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.       X
13.2
 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.       X
15.1
 Consent of PricewaterhouseCoopers LLP       X
101.INS XBRL Instance Document       X
101.SCH XBRL Taxonomy Extension Schema Document       X
101.DEF XBRL Taxonomy Extension Definition Linkbase Document       X
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document       X
101.LAB XBRL Taxonomy Extension Label Linkbase Document       X
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document       X



SIGNATURES
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Annual Report on Form 20-F on its behalf.
Date:    March 22, 2018February 23, 2023


NOMAD FOODS LIMITED
NOMAD FOODS LIMITED
By: /s/ Jason Ashton                                                 Samy Zekhout                                                 
Name: Jason AshtonSamy Zekhout
Title:    Interim    Chief Financial Officer


F-76