United Natural Foods, Inc. · NYSE:UNFI
United Natural Foods — Investor Day (June 2021)
59 slides from United Natural Foods's investor day presentation, Jun 24, 2021
Slide 1: Investor Day 2021
UNF Low
Slide 2: Disclaimer
Disclaimer Certain information in this presentation and discussed during this event which this presentation accompanies constitutes forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Statements regarding the Company’s business that are not histori
Slide 3: Fuel the Future
fuel the FU UIT URL
Slide 4: Vision
VISION Transform the Future of Food. B E T T E R F O O D . B E T T E R F U T U R E.
Slide 5: Mission
MISSION Make our customers stronger, our supply chain better, our food solutions more inspired. B E T T E R F O O D . B E T T E R F U T U R E.
Slide 6: Values
VALUES We do the right thing. We courageously embrace what’s next. We deliver better together. We believe in better for all. B E T T E R F O O D . B E T T E R F U T U R E.
Slide 7: Fuel the Future strategy pillars
fuel the roa | FUTURE WO <OO FULFILL POWER IN SCALE Best-in-Class Food Distribution Supply Chain DC Network Optimization: Capacity, consolidation, automation Operational Excellence: Associate productivity & engagement ONE UNFI: One order, one truck, one invoice TASTE THE FUTURE Margin & Differentiat
Slide 8: Fulfill Power in Scale
Fulfill Power in Scale Execute the core flawlessly and deliver accessibility
Slide 9: North America's Largest Distributor
NORTH AMERICA’S LARGEST DISTRIBUTOR
Slide 10: What is Scale?
What is Scale? Strategically located Capacity to support close to customers future growth Procure product in the Flexibility to shift volume most efficient manner amongst distribution centers
Slide 11: Simplify, optimize, improve associate experience
Simplify our business Optimize our network Improve the associate experience Stay at the forefront of the industry
Slide 12: ONE UNFI: One order, one truck, one invoice
Order ONEUNEL | ™* Invoice fuel the UNFI [Flu| Tu} RIE!
Slide 13: Multi-Tiered Approach
Multi-Tiered Approach Distribute products more efficiently Improve order accuracy Improve customer access
Slide 14: Investment in Automation
Investment in Automation
Slide 15: Early Access
Early Access ShiftSwap —_ Flex Shift
Slide 16: Guiding our Journey to Operational Excellence
Customer Culture caries Guiding our Journey to Operational Excellence — vaneen Transforming the world of food through people, Operations Empowering L. innovation, quality and commitment to our customers. ‘Training Influence BETTER FOOD. BETTER FUTURE. Work Resource Instructions Planning
Slide 17: Allentown PA Distribution Center coming soon
Allentown PA Distribution Center coming soon
Slide 18: Allentown PA Distribution Center coming soon
Allentown PA Distribution Center coming soon
Slide 19: Allentown PA Distribution Center coming soon
Allentown PA Distribution Center coming soon
Slide 20: KPI Fiscal 2024: Improve operating expense
KPI Fiscal 2024 Improve operating expense 10 basis points per year as a percent of net sales
Slide 21: Unlock Customer Experience
Unlock Customer Experience Evolve and tailor our partnership model to be best-in-class
Slide 22: Strengthening the Competitiveness of our Customers
Strengthening the Competitiveness of our Customers 1 Delivering a comprehensive portfolio of products, brands and services 2 Tapping into current consumer and retail trends
Slide 23: UNFI has over 15,000 diversified customers
UNFI has over 15,000 diversified customers CONVENTIONAL PREMIUM ETHNIC NATURAL VALUE ECOM
Slide 24: $140B Addressable Market
Current UNFI share Opportunity with existing customers $26B $38B Addressable Market ~$140B $78B New customer opportunity
Slide 25: Uniquely positioned to help customers win
Conventional Natural Uniquely Specialty positioned Services to help Protein / Produce customers Deli / Bakery win Private Brands > $1B eCom Bakery
Slide 26: Unlocking the Customer Experience
Unlocking the Customer Experience Focused, reorganized sales team Tailored solutions Enhanced customer communication Data-driven decision making
Slide 27: KPI Fiscal 2024: Achieve at least 20% market share
KPI Fiscal 2024 Deliver improved customer experience relative to FY22 benchmark Achieve at least 20% market share of $140 billion addressable market
Slide 28: Taste the Future
Taste the Future Pioneer new growth sources and maximize existing solutions
Slide 29: Slide 29
Slide 30: Customers Stronger, Supply Chain Better, Food Solutions Inspired
Customers = STRONGER Supply Chain = BETTER Food Solutions = INSPIRED
Slide 31: Brands+, Professional Services, eSolutions
UNFL | UNFLE: | UNFI BRANDS+ PROFESSIONAL SERVICES eSOLUTIONS
Slide 32: 3 Key Areas of Brands+ Growth
3 KEY AREAS OF BRANDS+ GROWTH New products to meet INNOVATION ever-evolving consumer needs NEW Partnership with new customers + channels Penetration with CORE existing customers
Slide 33: Brands+ portfolio brands
’ eM BECAUSE WOODSTOCK Essential titres geank ® EVERYDAYs TUMAROS ) KoYO UNFI rr]ulTiupR Ie]
Slide 34: $1B in wholesale sales with growth to $2B
$1B in wholesale sales with growth to $2B
Slide 35: Professional Services offerings
STORE DESIGN CREDIT CARD PROCESSING RETAIL TECHNOLOGY eCOM DELIVERY SHELF MANAGEMENT CONSUMER MARKETING AND MORE!
Slide 36: eSolutions
UNFI EASY OPTIONS UNEL | cone ™ marketplace by UNFI HONEST GREEN DROPSHIP & LTL
Slide 37: KPI Fiscal 2024: Adjusted EBITDA from growth platforms
KPI Fiscal 2024 25% Adjusted EBITDA from growth platforms + innovation
Slide 38: UNFI Pride
UNFI Pride Inspire people and build culture (at and beyond UNFI)
Slide 39: Safety Campaign
MATTERS Safety Campaign
Slide 40: Our world, our communities, our people
Our world Our communities Our people
Slide 41: Better for All Climate Action Hub
UNFI WY Better for All Climate Action Hub in partnership with € 3 CLIMATE COLLABORATIVE” Commit. Act. Impact.
Slide 42: Built to Win: Military Services
‘FL BUILT WIN MILITARY SERVICES
Slide 43: KPI Fiscal 2024: Associate engagement and ESG goals
KPI Fiscal 2024 Increase associate engagement scores by 5 points by fiscal 2024 Progress toward Better For All 2030 ESG goals
Slide 44: Retail Optimized
Retail Optimized Capitalize on Value of Retail Today and Tomorrow
Slide 45: Shoppers: Low prices. Every day.
@ SHOPPERS. Low prices. Every day.
Slide 46: my Cub, my way
Slide 47: Investing in technology and upgrading systems
Investing in technology and upgrading systems eCommerce + Digital Platform Point of Sale System Data Network
Slide 48: Earn Results
Earn Results Achieve financial targets
Slide 49: Optimization, automation and simplification
Optimization of distribution centers Strategic use of automation and technology Simplification of how work gets done
Slide 50: ValuePath Benefits
ValuePath ValuePath Benefits FY22 Benefits FY23 cumulative gross benefits cumulative gross benefits $60-80M $70-100M
Slide 51: Reinvesting the Savings
Drive market share gains Accelerate innovation Reinvesting Invest in automation the Savings Maintain appropriate wage scales
Slide 52: Financial Expectations FY21-FY24
Increase net sales by 3-5% Financial Expectations Increase adjusted FY21-FY24 Average EBITDA by 6-10% Annual Growth Rates Increase EPS by 12-18%
Slide 53: Fiscal 2024 targets
Fiscal 2024 Sales Adjusted EBITDA (1) EPS $30B+ $900M+ $5.25+/share (1) See appendix for definition of Adjusted EBITDA and the reconciliation of Adjusted EBITDA to net income .
Slide 54: Capital Investment
Capital Investment 90-100 bps of annual net sales
Slide 55: Fuel the Future
G UNFI fuel the future FULFILL TASTE RETAIL POWER THE OPTIMIZED IN SCALE FUTURE UNLOCK THE EARN
Slide 56: KPIs Fiscal 2024
KPIs Fiscal 2024 Deliver 20% 25% Customer Experience Share of $140B Adjusted EBITDA from (Benchmark in FY22) Addressable Market Growth Platforms + Innovation -10 bps +5 pts Progress Reduce Op Ex Associate Better for All as % of Net Sales Engagement (ESG 2030 Goals) (Annually) EARN RESULTS +3-5% +6-1
Slide 57: Fuel the Future
fuel the FU UIT URL
Slide 58: UNF Low
UNF Low
Slide 59: Reconciliation - Adjusted EBITDA
Reconciliation - Adjusted EBITDA Reconciliation of Fiscal 2024 net income to Adjusted EBITDA ($’s in millions) Net income attributable to United Natural Foods, Inc. $ 350 Provision for income taxes 105 Net interest expense 120 Depreciation and amortization 300 Share-based compensation 45 Net periodi