Performance Food Group Company · NYSE:PFGC
Performance Food — Investor Presentation (2017)
18 slides from Performance Food's investor presentation, Jul 2, 2017
Slide 1: 2017 Investor Presentation
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Slide 2: Growth Outpacing a Growing Industry
Growth Outpacing a Growing Industry Food Away From Home PFG Net Sales $B $B CAGR CAGR 8.2% 5.2% $741 $15.3 $16.1 $12.8 $13.7 $11.5 $10.1 $10.6 $331 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 FY10 FY11 FY12 FY13 FY14 FY15 FY16 U.S. Foodservice Market Size PFG Adjusted EBITDA(
Slide 3: Foodservice Industry Customer Verticals
Foodservice Industry Customer Verticals PFG Total Industry Total Retail / Hospitality Retail / Regional / Hospitality Education National Education Regional / Chains National Chains Healthcare Other Healthcare Other Independent Independent • Continue to improve mix of independents customers • Focus o
Slide 4: U.S. Foodservice Industry Structure
U.S. Foodservice Industry Structure $B 2015 Market Size = ~ $268 SYY USFD PFG Top 3 $82 $43 $23 $16 4-10 Regional $23 Broadliners 11-15,000+ All Other $163 Note: Technomic and company filings for Sysco, PFG, and US Foods. U.S. Sales only, where available; PFG estimates. 3
Slide 5: PFG Overview
PFG Overview • Third largest foodservice distributor in the U.S. and a leading distributor to a wide Sysco variety of channels 16% PFGC 6% US Foods • Operates primarily in three segments: 9% − Performance Foodservice Others − Vistar 69% − PFG Customized 2016 Net Sales = $16.1BN EBITDA Profit Margins
Slide 6: Top 3 Distributors' Growth Rates
Top 3 Distributors’ Growth Rates Net Sales 170% 160% 158% 150% 140% 138% 130% 120% 122% 110% 100% 90% CY2010 CY2011 CY2012 CY2013 CY2014 CY2015 CY2016 Adjusted EBITDA 170% 171% 160% 150% 140% 132% 130% 120% 128% 110% 100% 90% CY2010 CY2011 CY2012 CY2013 CY2014 CY2015 CY2016 Note: Company filings. De
Slide 7: Performance Foodservice
Performance Foodservice Growth Strategy Net Sales • Customers First CAGR 9.5% • Improve Mix through Street and Brands $9.1 $9.6 $7.5 $8.1 $6.1 $6.7 $5.6 • Increase geographic scope and scale through acquisitions FY10 FY11 FY12 FY13 FY14 FY15 FY16 Selected Customers EBITDA CAGR 13.2% $307 $254 $208 $
Slide 8: Improve Mix through Street and Brands
Improve Mix through Street and Brands Street Mix of Broadline Sales Company Brand Mix of Street 44.1% 43.1% 43.4% 42.6% 41.3% 40.5% 39.1% 38.7% 39.4% 38.1% 37.9% 36.9% 37.2% 37.2% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY10 FY11 FY12 FY13 FY14 FY15 FY16 • Focus on selling to our most profitable customer
Slide 9: Performance Brands: a $2B+ Business
Performance Brands: a $2B+ Business • Proprietary brands are a key competitive advantage in the industry; growing double-digit • Only the largest players in the foodservice industry have the scale to carry a broad line of differentiated brands • Chefs embrace PFG’s portfolio of Performance Brand SKU
Slide 10: Vistar Overview
Vistar Overview Growth Strategy Net Sales • Utilize strengths to grow both core $B CAGR and emerging channels 8.4% • Improve mix $2.7 $2.4 • Improve cost structure through $1.9 $2.1 $2.3 utilization of technology $1.7 $1.7 • Enter new channels and develop new capabilities through acquisitions FY10 F
Slide 11: PFG Customized Overview
PFG Customized Overview Growth Strategy Net Sales • Grow share of casual dining segment $B CAGR through new customer wins 5.2% • Broaden scope of business to add $3.2 $3.3 $3.8 $3.8 fast casual chains $2.8 $2.8 $2.9 • Continually improve cost structure FY10 FY11 FY12 FY13 FY14 FY15 FY16 Selected Cus
Slide 12: Complement Organic Growth with Acquisitions
Complement Organic Growth with Acquisitions Recent Acquisitions Acquisition Priorities • Operating Companies • Stand-alone Broadline OpCos − Bar Harbor Seafood ̶ Adjacent geographies − Ellenbee Leggett ̶ Base of street business − Chicago Vendor Supply ̶ Strong management team − Jenny Service • Fold-
Slide 13: FY2016 Highlights
FY2016 Highlights • Record FY2016 results − Net Sales topped $16B for the first time and increased 5.5% − Gross Profit topped $2B for the first time and increased 8.7% − Operating Profit grew 26.3% to $202.2MM − Adjusted EBITDA(1) grew 11.6% to $366.6MM (1) For reconciliation of non-GAAP to GAAP mea
Slide 14: Full-Year FY2016 Segment Results
Full-Year FY2016 Segment Results Net Sales EBITDA $ MM $ vs. PY $ MM $ vs. PY Performance Foodservice $ 9,616.3 + 5.8% $ 307.0 + 20.8% PFG Customized 3,782.1 + 0.8% 34.1 (6.6%) Vistar 2,701.5 + 11.4% 113.0 + 7.1% Note: PFG company reports 13
Slide 15: FY2016 Cash Flow and Balance Sheet
FY2016 Cash Flow and Balance Sheet • YTD Cash Flow highlights − Operating Cash Flow of $234.9MM vs. $127.4MM PY − CapEx of $119.7MM vs. $98.6MM PY − Acquisitions of $39MM vs. $0.4MM PY • Net Debt − FY2015 year-end: $ 1,413.4MM − FY2016 year-end: $ 1,134.6MM − Improvement vs. PY: $ 278.8MM Note: PFG
Slide 16: Appendix
Appendix 15
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation and the accompanying financial statement tables include several financial measures that are not calculated in accordance with GAAP, including EBITDA, Adjusted EBITDA, and Adjusted Diluted Earnings per Share. Such measures are not recognized terms under G
Slide 18: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA $MM FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 Net Income $ 68.3 $ 56.5 $ 15.5 $ 8.4 $ 21.0 $ 13.7 $ 0.9 Interest expense, net 83.9 85.7 86.1 93.9 76.3 78.9 84.7 Income tax expense 46.2 40.1 14.7 11.1 12.9 10.9 8.1 Depreciation 80.5 76.3 73.5 58.8 46.4 43.2 44
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