Sysco Corporation · NYSE:SYY
Sysco — Barclays Global Consumer Staples Conference 2022
25 slides from Sysco's conference presentation, Sep 8, 2022
Slide 1: Barclays Global Consumer Staples Conference 2022
Barclays Global Consumer Staples Conference 2022 September 8, 2022
Slide 2: Forward Looking Statements
Forward Looking Statements Statements made in this presentation or in our earnings call for the fourth quarter of fiscal year 2022 that look forward in time or that express management’s beliefs, expectations or hopes are forward-looking statements under the Private Securities Litigation Reform Act o
Slide 3: Kevin Hourican, President & CEO
KEVIN HOURICAN President & CEO
Slide 4: Food Supply Chain Food Sales & Marketing
Food Supply Chain Food Sales & Marketing
Slide 5: Key Takeaways
3 Key Takeaways • Recipe For Growth Strategy is driving profitable growth • Market share growth at 1.35x in FY 23 • Reaffirming FY 2023 guidance • Net sales growth of at least 10% and adjusted EPS of $4.09 - $4.39, representing growth of 26% to 35% • Capital Allocation & Balance Sheet Strength • Dis
Slide 6: Supply Chain Health
Supply Chain Health Supply Chain Health Strategic Initiatives Operations ‘Back-To-Basics’ Omni-channel fulfillment - Distributed Order • Routing excellence – pieces per truck / Management System (DOMS) deployment miles driven Full six-day deliveries (day balanced), combined with • Retention focus –
Slide 7: Commercial Enhancements Over the Past Year
Commercial Enhancements Over the Past Year Grew >1.3x the U.S. market for FY 22-Plans to Grow 1.35x for FY 23 and 1.5x by end of FY 24 Successfully closed on three M&A transactions-Expand Italian Platform Implemented our pricing tool-Improved Technology to be “Right on Price” Enhanced our digital ca
Slide 8: Investment Thesis: Sysco is Leading the Industry and Accelerating Growth
Investment Thesis Sysco is Leading the Industry and Accelerating Growth Expect to grow 1.5X faster Fortress Balance Sheet: CSR: Tangible than the total market by only Investment-Grade Science-Based the end of fiscal 2024 Food Service Distributor Climate Goal LT financial guidance Compelling sharehol
Slide 9: Aaron Alt, EVP & CFO
AARON ALT EVP & CFO
Slide 10: FY22 Consolidated Financial Results
FY22 Consolidated Financial Results Net Sales Adj. EBITDA1 Adj. EPS1 Overview (billions) (billions) • FY sales grew 36.9% on a comparable basis vs. fiscal 2021. $3.3 $3.25 • Adj. gross profit of $12.4 billion $68.6 increased 32.5% vs. prior year • Adj. EBITDA grew 58.5% on a $51.3 $2.2 comparable ba
Slide 11: Capital Structure and Allocation
Capital Structure and Allocation Investment Priority Progress • Continued capital investments planned in our technology, fleet and buildings 1 Invest for Growth • Successfully closed 3 Specialty acquisitions in FY22 • Maintained strong investment grade rating and improved outlook at Moody’s Maintain
Slide 12: Sysco Has Consistently Increased Returns to Shareholders
Sysco Has Consistently Increased Returns to Shareholders Cumulative Cash Returned to Shareholders $15.0 B $13.5 B $12.0 B $11.1 B $9.4 B $7.6 B $5.9 B $3.3 B $0.7 B FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Expected Dividends Shares Repurchased Expecting Over $15 Billion of Cash
Slide 13: We Are Upbeat About Our Business in Fiscal 2023
We Are Upbeat About Our Business in Fiscal 2023 Expect to grow at least 1.35x faster than the U.S. foodservice market, fueling top-line growth of at least 10% over FY22 Reaffirming our expected adjusted EPS for FY23 of $4.09 - $4.39 Disciplined with our balanced approach to capital allocation and re
Slide 14: Sysco: At the heart of food and service
Sysco At the heart of food and service
Slide 15: Sysco: At the heart of food and service
Sysco At the heart of food and service
Slide 16: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS /; the heart of food and service
Slide 17: Impact of Certain Items
Impact of Certain Items Our discussion of our results includes certain non-GAAP financial measures, such as EBITDA and adjusted EBITDA, that we believe provide important perspective with respect to underlying business trends. Other than free cash flow, any non-GAAP financial measures will be denoted
Slide 18: Non-GAAP Reconciliation: Impact of Certain Items, YTD FY22 vs. FY21
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items, YTD FY22 vs. FY21 (Dollars in Thousands, Except for Share and Per Share Data) 52-Week 53-Week Period Ended Period Ended Change Jul. 2, 2022 Jul. 3, 2021 in Dollars % Change Sales (GAAP) (
Slide 19: Non-GAAP Reconciliation: Impact of Certain Items, YTD FY22 vs. FY21 (continued)
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items, YTD FY22 vs. FY21 (Dollars in Thousands, Except for Share and Per Share Data) continued Operating margin (GAAP) 3.41% 2.80% 61 bps Operating margin adjusted for Certain Items (Non-GAAP) 3
Slide 20: Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) EBITDA represents net earnings plus (i) interest expense, (ii) income tax expense and benefit, (iii) depreciation and (iv) amortization. The net earnings component of our EBITDA calculation is impacted by Certain Items that we d
Slide 21: Impact of Certain Items on EBITDA (FY22 vs. FY21)
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (FY22 vs. FY21) (In Thousands) 52-Week 53-Week Period Ended Period Ended Change Jul. 2, 2022 Jul. 3, 2021 in Dollars %/bps
Slide 22: Net Debt to Adjusted EBITDA
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Net Debt to Adjusted EBIDTA (In Thousands) 52-Week Period Ended Jul. 2, 2022 Current Maturities of long-term debt $ 580,611 Long-term debt 10,066,931 Total Debt 10,647,542 Cash & Cash Equivalents (867,086) Net De
Slide 23: Net Debt to Adjusted EBITDA Leverage Ratio Targets
Net Debt to Adjusted EBITDA Leverage Ratio Targets We expect to achieve our net debt to adjusted EBITDA leverage ratio forecast in fiscal 2023. We cannot predict with certainty when we will achieve these results or whether the calculation of our EBITDA will be on an adjusted basis in future periods
Slide 24: Projected Adjusted EPS Guidance
Projected Adjusted EPS Guidance Adjusted earnings per share is a non-GAAP financial measure; however, we cannot predict with certainty the particular certain items that would be excluded from the calculation of this measure for future periods. Due to these uncertainties, we cannot provide a quantita
Slide 25: Projected Adjusted EBITDA Guidance
Projected Adjusted EBITDA Guidance Adjusted EBITDA is a non-GAAP financial measure; however, we cannot predict with certainty the particular certain items that would be excluded from the calculation of this measure for future periods. Due to these uncertainties, we cannot provide a quantitative reco
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