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1 FY25 Q2 Earnings Presentation December 19, 2024
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2 Legal Disclosure Note on Forward-Looking Statements This document contains forward-looking statements within the meaning of the federal securities laws. Examples of forward-looking statements include statements regarding the company’s expected future financial performance or position, results of operations, business strategy, plans and objectives of management for future operations, and other statements that are not historical facts. You can identify forward-looking statements by their use of forward-looking words, such as “Outlook”, “may”, “will”, “anticipate”, “expect”, “believe”, “plan”, “should”, or comparable terms. Readers of this document should understand that these forward-looking statements are not guarantees of performance or results. Forward-looking statements provide our current expectations and beliefs concerning future events and are subject to risks, uncertainties, and factors relating to our business and operations, all of which are difficult to predict and could cause our actual results to differ materially from the expectations expressed in or implied by such forward-looking statements. These risks, uncertainties, and factors include, among other things: risks associated with general economic and industry conditions, including inflation, reduced consumer confidence and spending, recessions, increased energy costs, supply chain challenges, labor shortages, currency rate fluctuations, and geopolitical conflicts; risks related to our ability to deleverage on currently anticipated timelines, and to continue to access capital on acceptable terms or at all; risks related to the company’s competitive environment, cost structure, and related market conditions; risks related to our ability to execute operating and value creation plans and achieve returns on our investments and targeted operating efficiencies from cost-saving initiatives, and to benefit from trade optimization programs; risks related to the availability and prices of commodities and other supply chain resources, including raw materials, packaging, energy, and transportation, weather conditions, health pandemics or outbreaks of disease, actual or threatened hostilities or war, or other geopolitical uncertainty; risks related to our ability to respond to changing consumer preferences and the success of our innovation and marketing investments; risks associated with actions by our customers, including changes in distribution and purchasing terms; risks related to the effectiveness of our hedging activities and ability to respond to volatility in commodities; disruptions or inefficiencies in our supply chain and/or operations; risks related to the ultimate impact of, including reputational harm caused by, any product recalls and product liability or labeling litigation, including litigation related to lead-based paint and pigment and cooking spray; risks related to the seasonality of our business; risks associated with our co-manufacturing arrangements and other third-party service provider dependencies; risks associated with actions of governments and regulatory bodies that affect our businesses, including the ultimate impact of new or revised regulations or interpretations including to address climate change or implement changes to taxes and tariffs; risks related to the company’s ability to execute on its strategies or achieve expectations related to environmental, social, and governance matters, including as a result of evolving legal, regulatory, and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon pricing or carbon taxes; risks related to a material failure in or breach of our or our vendors’ information technology systems and other cybersecurity incidents; risks related to our ability to identify, attract, hire, train, retain and develop qualified personnel; risk of increased pension, labor or people-related expenses; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; risk relating to our ability to protect our intellectual property rights; risks relating to acquisition, divestiture, joint venture or investment activities; the amount and timing of future dividends, which remain subject to Board approval and depend on market and other conditions; the amount and timing of future stock repurchases; and other risks described in our reports filed from time to time with the Securities and Exchange Commission. We caution readers not to place undue reliance on any forward-looking statements included in this document, which speak only as of the date of this document. We undertake no responsibility to update these statements, except as required by law. Additional Notes This presentation may contain references to industry market data. Although we believe industry information to be accurate, it is not independently verified by us and we do not make any representation as to the accuracy of that information. Note that some table calculations may not foot due to rounding.
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3 Sean Connolly President and Chief Executive Officer
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4 • Conagra is winning with the consumer and returned to growth in Q2, despite ongoing economic pressures • Volume and organic net sales positive • Investments drove strong market share performance • Two factors will pressure H2: • Higher than expected inflation • Unfavorable FX • Updating FY25 guidance Key Messages
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5 Economic Pressures Continue to Impact Consumer Behavior Value-Seeking Behavior Continues Results differ by category & company Manufacturers Investing to Return to Growth
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6 Conagra Returned to Growth in Q2 Note: Data represents total Conagra view of organic shipment volume as presented at the respective quarter shown. Total Conagra Organic Shipments (Conagra Volume, % Change vs. YA) (6.6)% (2.9)% (1.8)% (1.8)% (1.6)% +0.4% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25
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7 (7.0)% (3.5)% (1.8)% (1.7)% (1.0)% +1.0% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Domestic Retail Drove Conagra’s Q2 Growth Note: Total Domestic Retail consists of Refrigerated and Frozen and Grocery and Snacks segments. Data represents organic shipment volume as presented at the respective quarter shown. Total Conagra Domestic Retail Organic Shipments (Conagra CSU Volume, % Change vs. YA)
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8 37% 40% 57% 66% 66% 67% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Conagra’s Share Performance Remained Strong % of Conagra Portfolio Holding or Gaining Volume Share Source: Circana POS, Total US-MULO+ with Convenience, Syndicated Hierarchy, Fiscal Quarters Note: Data adjusted from previously published materials due to changes within the Circana model made with each update including coding corrections, new item additions, and other adjustments. 87% For Strategic Frozen & Snacks Domains
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9 % of Portfolio Holding or Gaining Volume Share (13 Weeks Ended November 24, 2024) Source: Circana POS, Total US-MULO+ with Convenience, Syndicated Hierarchy, 13 Weeks Ended November 24, 2024. Near-in peer set consists of, in alphabetical order, Campbell Soup, General Mills, Hormel, Kraft Heinz, Smucker’s. Peer A Peer B Peer C Peer D Peer E Share Performance Led Near-In Peer Set 67% 43% 42% 41% 31% 5%
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10 Merchandising Environment in Food Remains Rational 30% 37% 31% 36% Near-In Peerset FY20 Q2 (Pre-Covid) FY25 Q2 Share of Volume Sales Sold on Promotion Average Discount on Promotion 21% 24% 20% 22% Near-In Peerset FY20 Q2 (Pre-Covid) FY25 Q2 Source: Circana POS, Total US MULO+ with Convenience, Syndicated Hierarchy, 13 Weeks Ended November 24, 2019, and November 24, 2024. Near-in peer set consist of, in alphabetical order, Campbell Soup, General Mills, Hormel, Kraft Heinz, Smucker’s.
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11 Conagra’s Frozen Consumption Continued to Be Very Strong Source: Circana POS, Total US- MULO+ with Convenience, Conagra Custom Hierarchy, Fiscal Quarters. Data represents consumption data as measured by Circana. Conagra Frozen Volume Sales (% Change vs. YA) (7.5)% (5.0)% (3.0)% (0.4)% +1.7% +3.2% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25
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12 Share DriversCAG Outpacing Total Frozen Conagra’s Frozen Performance Outpaced Total Frozen 0.3% 2.8% 3.2% Total Edible Frozen Department Q2 Volume Sales % Change vs. YA +1.3 pts +1.1 pts +3.0 pts Q2 Volume Share Change vs. YA Source: Circana POS, Total US-MULO+ with Convenience, Syndicated Hierarchy and Conagra Custom Hierarchy, 13 Weeks Ended November 24, 2024 Single-Serve Meals Vegetables Multi-Serve Meals Frozen
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13 Our Investments in Frozen Single-Serve Meals Continued to Drive Strong Share Gains Source: Circana POS, Total US-MULO+ with Convenience, Conagra Custom Hierarchy, Left: 13 Weeks Ended November 24, 2024, Left Center: 52 Weeks Ended November 24, 2024 Note: Data adjusted from previously published materials due to changes within the Circana model made with each update including coding corrections, new item additions, and other adjustments. Conagra Frozen Single-Serve Meals Volume Share of Category 54% Conagra Frozen Single-Serve Meals Volume Share of Category All Other Manufacturers $6.4B S S M C a t e g o r y 49.4% 52.7% 52.2% 52.2% 51.2% 54.1% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 (0.1) vs. YA +1.2 vs. YA +1.5 vs. YA +1.6 vs. YA +1.8 vs. YA Enhanced Investments CAG Volume Share Pt. Change vs. 2YA +1.0 +3.2 +1.8 +2.1 +1.8 +2.5 +1.3 vs. YA
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14 Conagra’s Snacks Portfolio Continued to Grow Excluding Swiss Miss Source: Circana POS, Total US-MULO+ with Convenience, Conagra Custom Hierarchy, Fiscal Quarters. Dotted line represents Conagra snacks volume sales excluding Swiss Miss. Conagra Snacks Volume Sales (% Change vs. YA) Q2 Volume Sales % Change vs. YA (2.4)% (2.4)% (2.8)% +0.3% +1.1% (2.1)% +0.6% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Excl. Hot Cocoa +9% +5% +4% (18)%
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15 +18% +11% +10% Solid Performance in Conagra’s Staples Portfolio in Q2 Source: Circana POS, Total US-MULO+ with Convenience, Conagra Custom Hierarchy, Fiscal Quarters Conagra Staples Volume Sales (% Change vs. YA) (7.6)% (4.9)% (1.7)% (2.4)% (2.5)% (0.5)% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 Volume Sales % Change vs. YA
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16 Two Factors Expected to Pressure H2 I N F L A T I O N F O R E I G N E X C H A N G E • H2 inflation higher than planned • Expected relief in protein inflation deferred • International segment impacted by strengthening USD
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17 • Maintain brand investments; continue to prioritize top-line momentum • Limited new pricing actions; expect to offset some cocoa and sugar inflation • Continue to focus on maximizing cash flow, debt reduction, and portfolio reshaping Our Response to H2 Headwinds
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18 Updating Fiscal 2025 Guidance 1 1 Guidance Old New Organic Net Sales1 Growth (vs. FY24) (1.5)% to Flat (1.5)% to Flat ~Midpoint Adj. Operating Margin1 15.6% to 15.8% ~14.8% Adj. EPS1 $2.60 to $2.65 $2.45 to $2.50 1. Forward-looking non-GAAP financial measure. See the appendix for more information.
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19 Dave Marberger Executive Vice President and Chief Financial Officer
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201. Non-GAAP financial measure. See the appendix for certain definitions and reconciliations to the most directly comparable GAAP measure. Q2 Q2 vs. YA Organic Net Sales1 $3,194 +0.3% Adj. Gross Margin1 26.4% (52) bps Adj. Operating Margin1 15.3% (57) bps Adj. EPS1 $0.70 (1.4)% FY25 Q2 Results
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21 Net Sales by Segment 1. Non-GAAP financial measure. See the appendix for certain definitions and reconciliations to the most directly comparable GAAP measure. 1 1 Dollars in Millions Increase/(Decrease) Q2 Net Sales Organic1 vs. YA Price/Mix vs. YA Organic1 Volume vs. YA Grocery & Snacks $1,321 +1.2% 0.9% 0.3% Refrigerated & Frozen 1,339 Flat (1.9)% 1.9% International 243 (0.7)% 1.7% (2.4)% Foodservice 292 (1.0)% 2.9% (3.9)% Total Conagra Brands $3,195 +0.3% (0.1)% 0.4%
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22 +0.4% (0.1)% (0.3)% (0.4)% (0.4)% Volume Price/Mix (incl. Retailer Investments) Foreign Exchange M&A Total Conagra Brands Net Sales Bridge vs. Year Ago Q2 Drivers of Net Sales Change (% Change vs. YA) 1. Non-GAAP financial measure. See the appendix for certain definitions and reconciliations to the most directly comparable GAAP measure. Organic Net Sales1: +0.3%
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23 Q2 F 2 Price Mix incl. Retailer nvestments COGS nflation Productivity, et of Operational Offsets P dj. SG F M Q2 F 2 Q2 Adjusted Operating Margin1 Bridge Q2 Adjusted Operating Margin1 (% Change vs. YA) 2 1. Non-GAAP financial measure. See the appendix for certain definitions and reconciliations to the most directly comparable GAAP measure. 2. COGS Inflation reflects market inflation net of market-based sourcing. 1
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24 Segment Adjusted Operating Profit1 & Margin1 Summary 1 1 Dollars in Millions Increase/(Decrease) Adj. Op. Profit1 Adj. Op. Margin1 Q2 vs. YA Q2 vs. YA Grocery & Snacks $296 +4.8% 22.4% +60 bps Refrigerated & Frozen 198 (10.8)% 14.8% (179) bps International 39 (2.9)% 16.2% +167 bps Foodservice 36 +1.1% 12.2% +24 bps Adjusted Corporate Expense1 (79) +13.1% - - Total Conagra Brands $490 (4.0)% 15.3% (57) bps 1. Non-GAAP financial measure. See the appendix for certain definitions and reconciliations to the most directly comparable GAAP measure. Q2 Adjusted Operating Profit1 & Margin1
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25 Q2 Adjusted EPS1 Bridge Drivers of Q2 Adjusted EPS1 vs. YA Q2 F 2 dj. PS dj. Op. Profit Pension, nterest dj. ncome Tax xp. uity Method nvestment arnings rdent Mills, etc F M Q2 F 2 dj. PS 1. Non-GAAP financial measure. See the appendix for certain definitions and reconciliations to the most directly comparable GAAP measure. Numbers may not add due to rounding. 11 1 1
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26 Key Balance Sheet & Cash Flow Metrics (dollars in millions) H1 FY25 H1 FY24 Net Cash Flow from Operating Activities $754 $855 Capital Expenditures $215 $214 Free Cash Flow1 $539 $641 Dividends Paid $335 $325 Share Repurchases $64 - M&A – Net Cash Outflow $154 - (dollars in millions) Q2 FY25 Q2 FY24 Debt $8,464 $9,070 Cash $37 $62 Ending Net Debt1 $8,426 $9,008 Net Leverage2 3.54x 3.55x 1. Non-GAAP financial measure. See the appendix for certain definitions and reconciliations to the most directly comparable GAAP measure. 2. Net Leverage Ratio is net debt divided by Adjusted EBITDA for the trailing four quarters.
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27 127% >100% FY24 FY25 Updated Est. 35% 1% 16% 97% 91% FY21 FY22 FY23 FY24 FY25 Strong Free Cash Flow1 Supporting Debt Reduction H1 Free Cash Flow1 Conversion • Back-to-back years of strong H1 and projected full-year free cash flow(1,2) conversion • Debt reduction of more than $600mm in latest 12 months ending Q2 • Raising full year free cash flow2 conversion estimate to >100% 1. Non-GAAP financial measure. See the appendix for certain definitions and reconciliations to the most directly comparable GAAP measure. 2. Forward-looking non-GAAP financial measure. See the appendix for more information. Full Year FCF(1,2) Conversion 1 2
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28 Updating Fiscal 2025 Guidance 1 1 1. Forward-looking non-GAAP financial measure. See the appendix for more information. Guidance Key Drivers Organic Net Sales1 Growth (vs. FY24) (1.5)% to Flat ~Midpoint • Continued sequential volume improvement • Limited pricing in H2 to offset some inflation • Q3 price/mix larger headwind due to trade investment timing Adj. Operating Margin1 ~14.8% • Full year inflation expected closer to 4% • Full year adj. gross margin expected to be down ~90 bps vs. YA • Q3 adj. operating margin expected to be lowest of the year Adj. EPS1 $2.45 to $2.50 • Factors impacting adj. operating margin, plus • Full year FX headwind of $0.04
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29 Other Fiscal 2025 Considerations Guidance Old New Free Cash Flow1 Conversion ~90% >100% Net Leverage1 ~3.2x ~3.4x Adj. Tax Rate ~23.5% ~23.0% Capital Expenditures $450 Unchanged Ardent Mills ~$150 Unchanged Interest Expense ~$415 Unchanged Pension Income ~$12 Unchanged 1. Forward-looking non-GAAP financial measure. See the appendix for more information.
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30 Appendix
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31 This document includes certain non-GAAP financial measures. Management considers GAAP financial measures as well as such non-GAAP financial information in its evaluation of the company’s financial statements and believes these non-GAAP financial measures provide useful supplemental information to assess the company’s operating performance and financial position. These measures should be viewed in addition to, and not in lieu of, the company’s diluted earnings per share, operating performance and financial measures as calculated in accordance with G P. Organic net sales excludes, from reported net sales, the impacts of foreign exchange, divested businesses and acquisitions, as well as the impact of any 53rd week. All references to changes in volume and price/mix throughout this release are on an organic net sales basis. Free cash flow is net cash from operating activities less additions to property, plant and equipment. Free cash flow conversion is free cash flow divided by adjusted net income attributable to Conagra Brands, Inc. References to adjusted items throughout this document refer to measures computed in accordance with GAAP less the impact of items impacting comparability. Items impacting comparability are income or expenses (and related tax impacts) that management believes have had, or are likely to have, a significant impact on the earnings of the applicable business segment or on the total corporation for the period in which the item is recognized and are not indicative of the company’s core operating results. These items thus affect the comparability of underlying results from period to period. References to earnings before interest, taxes, depreciation, and amortization (EBITDA) refer to net income attributable to Conagra Brands before the impacts of discontinued operations, income tax expense (benefit), interest expense, depreciation, and amortization. References to adjusted EBITDA refer to EBITDA before the impacts of items impacting comparability. Hedge gains and losses are generally aggregated, and net amounts are reclassified from unallocated corporate expense to the operating segments when the underlying commodity or foreign currency being hedged is expensed in segment cost of goods sold. The net change in the derivative gains (losses) included in unallocated corporate expense during the period is reflected as a comparability item, Corporate hedging derivate gains (losses). Forward-Looking Non-GAAP Financial Measures Our fiscal 2025 guidance includes certain non-GAAP financial measures (organic net sales growth, adjusted operating margin, adjusted EPS, net leverage ratio, free cash flow, and adjusted effective tax rate) that are presented on a forward-looking basis. Historically, the company has calculated these non-GAAP financial measures excluding the impact of certain items such as, but not limited to, foreign exchange, acquisitions, divestitures, restructuring expenses, the extinguishment of debt, hedging gains and losses, impairment charges, legacy legal contingencies, and unusual tax items. Reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures are not provided because the company is unable to provide such reconciliations without unreasonable effort, due to the uncertainty and inherent difficulty of predicting the timing and the financial impact of such items. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results. Notes on Non-GAAP Financial Measures
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32 Reconciliation of Q2 FY25 Organic Net Sales by Segment (in millions) - YOY Change
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33 Reconciliation of Q2 FY25 Adj. Operating Profit by Segment (in millions) – YOY Change
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34 Reconciliation of Q2 FY25 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income, (in millions) and Adj. EPS – YOY Change 1. Operating profit is derived from taking Income before income taxes, adding back Interest expense, net and removing Pension and postretirement non-service income and Equity method investment earnings. 2. Advertising and promotion expense (A&P) has been removed from adjusted selling, general and administrative expense because this metric is used in reporting to management, and management believes this adjusted measure provides useful supplemental information to assess the Company’s operating performance. Please note that A&P is not removed from adjusted profit measures.
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35 Reconciliation of Q2 FY25 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income, (in millions) and Adj. EPS – YOY Change Cont. 1. Operating profit is derived from taking Income before income taxes, adding back Interest expense, net and removing Pension and postretirement non-service income and Equity method investment earnings. 2. Advertising and promotion expense (A&P) has been removed from adjusted selling, general and administrative expense because this metric is used in reporting to management, and management believes this adjusted measure provides useful supplemental information to assess the Company’s operating performance. Please note that A&P is not removed from adjusted profit measures.
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36 Reconciliation of Q2 FY25 Free Cash Flow and Net Debt (in millions)
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37 Reconciliation of Q2 FY25 Net Leverage Ratio (in millions) 1. As of November 24, 2024. 2. Excludes comparability items related to depreciation.. 3. The company defines its net debt leverage ratio as net debt divided by adjusted EBITDA for the trailing twelve month (TTM) period.
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38 Reconciliation of Q2 FY24 Net Leverage Ratio (in millions) 1. As of November 26, 2023 2. Excludes comparability items related to depreciation. 3. Excludes comparability items attributable to noncontrolling interests. 4. The company defines its net debt leverage ratio as net debt divided by adjusted EBITDA for the trailing twelve-month (TTM) period. FY23 Q2 FY23 YTD Q2 FY24 YTD Q2 FY24 TTM (a) (b) (c) =(a)-(b)+(c) Net Debt 1 $ 9,008.1 Net income attributable to Conagra Brands, Inc. $ 683.6 $ 304.4 $ 605.9 $ 985.1 Add Back: Income tax expense 218.7 136.9 201.2 283.0 Income tax expense attributable to noncontrolling interests (0.5) (0.1) (0.1) (0.5) Interest expense, net 409.6 197.4 219.3 431.5 Depreciation 313.1 156.0 169.1 326.2 Amortization 56.8 29.5 26.8 54.1 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 1,681.3 $ 824.1 $ 1,222.2 $ 2,079.4 Restructuring plans 2 12.3 6.7 21.8 27.4 Acquisitions and divestitures 8.4 0.6 0.2 8.0 Corporate hedging derivative losses (gains) 37.1 1.9 (16.4) 18.8 Impairment of businesses held for sale 26.7 26.7 34.2 34.2 Goodwill and brand impairment charges 3 729.3 385.7 — 343.6 Legal matters 3.8 — 14.0 17.8 Fire related costs (insurance recoveries), net 13.4 7.9 (2.8) 2.7 Municipal water break costs 3.5 3.2 — 0.3 Third-party vendor cybersecurity incident 4.4 — — 4.4 Adjusted EBITDA $ 2,520.2 $ 1,256.8 $ 1,273.2 $ 2,536.6 Net Debt to Adjusted EBITDA 4 3.55
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39 Reconciliation of Q2 FY21 to Q2 FY25 YTD and FY24 Free Cash Flow (in millions), Free Cash Flow YOY Change & Conversion Rate Q2FY21 YTD Q2FY22 YTD Q2FY23 YTD Q2FY24 YTD FY24 Q2FY25 YTD 707.9$ 510.9$ 304.4$ 605.9$ 347.2$ 751.3$ Restructuring plans 34.9 21.2 5.0 20.8 49.9 63.6 Acquisitions and divestitures 2.4 1.2 0.5 0.2 0.2 — Corporate hedging derivative losses (gains) (0.6) (2.5) 1.4 (12.2) (12.0) (6.8) Fire related costs (insurance recoveries), net — — 6.0 (2.1) (6.6) (12.8) Proceeds received from the sale of a legacy investment — (2.8) — — — — Consulting fees on tax matters 0.9 1.2 — — — 1.5 Loss (gain) on divestiture of businesses (3.5) — — — — 1.5 Early extinguishment of debt 33.2 — — — — — Municipal water break costs — — 2.4 — — — Impairment of businesses held for sale — 32.2 20.1 34.3 36.0 — Goodwill and brand impairment charges — — 326.8 — 847.7 14.5 Pension valuation adjustment — — — — (8.7) — Legal matters, net of recoveries (1.5) (11.0) — 10.4 26.2 2.6 Valuation allowance adjustment (25.3) — — — — (225.8) Unusual tax items (7.6) (3.6) — — — — 740.8$ 546.8$ 666.6$ 657.3$ 1,279.9$ 589.6$ Q2FY21 YTD Q2FY22 YTD Q2FY23 YTD Q2FY24 YTD FY24 Q2FY25 YTD Net cash flows from operating activities $ 541.4 $ 262.1 $ 297.8 $ 854.6 $ 2,015.6 $ 754.2 Additions to property, plant and equipment (282.0) (257.5) (188.4) (214.0) (388.1) (215.4) Free cash flow 259.4$ 4.6$ 109.4$ 640.6$ 1,627.5$ 538.8$ Free cash flow conversion rate 35% 1% 16% 97% 127% 91% Net income attributable to Conagra Brands, Inc. Adjusted Net income attributable to Conagra Brands, Inc. Note: Free cash flow conversion is defined as free cash flow divided by adjusted net income therefore no reported conversion rate is necessary