Slide 1: Sysco 3Q FY21 Earnings Results
Sysco 3Q FY21 Earnings Results May 4
Slide 2: Forward Looking Statements
Forward Looking Statements Statements made in this presentation or in our earnings call for the third quarter of fiscal 2021 that look forward in time or that express management’s beliefs, expectations or hopes are forward-looking statements within the meaning of the Private Securities Litigation Re
Slide 3: Kevin Hourican, President & CEO
KEVIN HOURICAN President & CEO
Slide 4: The Business Recovery has Begun Within Our U.S. Business
The Business Recovery has Begun Within Our U.S. Business Sysco‘s pace of recovery is accelerating Delivered strong financial results in light of the market conditions We are now serving more independent customers compared to pre-COVID Notable national sales wins in Restaurants, Foodservice Managemen
Slide 5: Our Strategic Investments for the Business Recovery Increased throughout 3Q21
Our Strategic Investments for the Business Recovery Increased throughout 3Q21 Restaurants Rising Campaign, no minimum delivery Customers requirements, continuation of delivery frequency Drivers, warehouse associates, sales associates and People leadership team Broad product portfolio with the right
Slide 6: Sysco is Gaining Share by Adding New Independent Customers
Sysco is Gaining Share by Adding New Independent Customers Independent Customer Count FY19 FY21 FY19 FY21 Restaurant Sysco Industry Sysco’s independent customer count has increased more than 10% during a time when industry closures were approximate 10%
Slide 7: Our Corporate Social Responsibility Goals are Progressing Well
Our Corporate Social Responsibility Goals are Progressing Well Sysco and Cargill announced a major new partnership with the National Fish and Wildlife Foundation (NFWF) that will help ranchers tackle the impacts of climate change and improve grasslands We are creating one of the largest sustainable
Slide 8: We Are Maximizing our Opportunity to Recover Faster than the Foodservice Distribution Industry
We Are Maximizing our Opportunity to Recover Faster than the Foodservice Distribution Industry Sysco is well poised to take market share as the business returns to the Food-Away-From-Home sector We are prepared to do more than any other foodservice distributor in the industry to ensure the success o
Slide 9: Aaron Alt, EVP & CFO
AARON ALT | EVP & CFO
Slide 10: Strong Cash Flow During the Third Quarter and First 39 Weeks
Strong Cash Flow During the Third Quarter and First 39 Weeks First 39 Weeks First 39 Weeks of FY20 of FY21 Cash from Ops $1.1B $1.5B $401M Free Cash Flow1 $0.5B $1.2B $760M We are forecasting relatively flat free cash flow for the Fourth Quarter 1 See Non-GAAP reconciliations at the end of the prese
Slide 11: We Have Deleveraged Our Balance Sheet by $2.3B in FY21
We Have Deleveraged Our Balance Sheet by $2.3B in FY21 1. $750M Paydown of Credit Facility in Q1 FY21 2. $700M Paydown of Credit Facility in Q3 FY21 3. March Repayment of £300M UK Commercial Paper Program 4. April Repayment of £200M UK Commercial Paper Program 5. Upcoming May Repayment of £100M UK C
Slide 12: 3Q21 Total Sysco Results
3Q21 Total Sysco Results Total Sysco 3Q21 Sales $11.8B 13.7% Gross Profit $2.1B 17.2% Adj. Operating Income 1 $256M 32.0% 1 Adj. EBITDA $437M 18.7% 1 Adj. EPS $0.22 51.1% Sales trends improving as markets reopen 1 See Non-GAAP reconciliations at the end of the presentation.
Slide 13: 3Q21 U.S. Foodservice Results
3Q21 U.S. Foodservice Results U.S. U.S. Foodservice Foodservice 3Q21 Sales $8.4B 12.8% Gross Profit $1.6B 13.7% 1 Adj. Operating Expenses $1.1B 16.1% 1 $525M Adj. Operating Income 8.3% The U.S. reopening continues to advance 1 See Non-GAAP reconciliations at the end of the presentation.
Slide 14: 3Q21 SYGMA Results
3Q21 SYGMA Results SYGMA 3Q21 Sales $1.6B 15.9% Gross Profit $133M 12.3% 1 Adj. Operating Expenses $121M 11.1% 1 $13M Adj. Operating Income 24.1% Third consecutive quarter of SYGMA sales growth 1 See Non-GAAP reconciliations at the end of the presentation.
Slide 15: 3Q21 International Results
3Q21 International Results International 3Q21 Sales $1.7B 31.3% Gross Profit $325M 35.1% 1 Adj. Operating Expenses $418M 15.8% 1 Adj. Operating Loss ($92M) - International growth expected in FY22 and beyond 1 See Non-GAAP reconciliations at the end of the presentation.
Slide 16: Our Transformational Initiatives Will Drive Future Value
Our Transformational Initiatives Will Drive Future Value We remain resolutely focused on managing the business recovery and building customer-centric capabilities to accelerate long-term growth
Slide 17: Sysco: At the heart of food and service
S/sco At the heart of food and service
Slide 18: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS
Slide 19: Impact of Certain Items
Impact of Certain Items Sysco’s results of operations for fiscal 2021 and fiscal 2020 were impacted by restructuring and transformational project costs consisting of: (1) restructuring charges; (2) expenses associated with our various transformation initiatives; and (3) facility closure and severanc
Slide 20: Impact of Certain Items, 3Q21
Impact of Certain Items, 3Q21 Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items (Dollars in Thousands, Except for Share and Per Share Data) 13-Week 13-Week Period Ended Period Ended Change Mar. 27, 2021 Mar. 28, 2020 in Dollars % Change O
Slide 21: Impact of Certain Items, 3Q21 (Segment)
Impact of Certain Items, 3Q21 (Segment) Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments (Dollars in Thousands) 13-Week 13-Week Period Ended Period Ended Change Mar. 27, 2021 Mar. 28, 2020 in Dollar
Slide 22: Free Cash Flow
Free Cash Flow Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Free Cash Flow (In Thousands) Free cash flow represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. Sy
Slide 23: EBITDA, 3Q21
EBITDA, 3Q21 Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (In Thousands) EBITDA represents net earnings (loss) plus (i) interest expense, (ii) income tax expe