Slide 1: Sysco 2Q FY21 Earnings Results
Sysco 2Q FY21 Earnings Results February 2
Slide 2: Forward Looking Statements
Forward Looking Statements Statements made in this presentation or in our earnings call for the second 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 R
Slide 3: Kevin Hourican, President & CEO
KEVIN HOURICAN President & CEO
Slide 4: Sysco is Gaining Market Share and Leading the Foodservice Distribution Industry
Sysco is Gaining Market Share and Leading the Foodservice Distribution Industry Throughout the Disruption Sysco is not just managing through the COVID disruption – we are transforming the business by creating new capabilities for our future Delivered a profitable second quarter despite a 23% decline
Slide 5: We Have Made Investments in Preparation for the Pending Business Recovery
We Have Made Investments in Preparation for the Pending Business Recovery 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 prod
Slide 6: Restaurants Rising Helps Restaurants Succeed and Strengthen Their Business
Restaurants Rising Helps Restaurants Succeed and Strengthen Their Business No Delivery Minimums Outdoor Dining Solutions Fast Onboarding & Credit Card Payments Restaurant Marketing Tools Menu Optimization and Web-Enablement Maintaining Delivery Frequency
Slide 7: The Rate of Closures at Sysco Customers Continues to be Lower
The Rate of Closures at Sysco Customers Continues to be Lower Than Overall Restaurant Industry U.S. Restaurant closures vs. Jan 20201 9.0% 8.0% Sysco customer 7.0% closure rate 50% 6.0% lower than 5.0% industry average 4.0% 3.0% 2.0% 1.0% 0.0% Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Tot
Slide 8: Where Restrictions Have Eased, Consumers Ready to Eat Away From Home
Where Restrictions Have Eased, Consumers Show They Are Ready to Eat Away From Home Denver Weekly Volume vs. FY191 29-Nov 6-Dec 13-Dec 20-Dec 27-Dec 3-Jan 10-Jan 17-Jan Restrictions2 1Normalized for Winter holiday demand 2Restrictions eased from 0% indoor dining capacity to 25% indoor dining capacity
Slide 9: We Will Deliver Upon the Largest Business Transformation in Our History
We Will Deliver Upon the Largest Business Transformation in Our Company’s History We are making great progress on our transformational efforts while leading through the COVID crisis Sysco will be positioned as the most customer-centric foodservice distributor in the industry Our transformational str
Slide 10: Aaron Alt, EVP & CFO
AARON ALT EVP & CFO
Slide 11: 2Q21 Total Sysco Results
2Q21 Total Sysco Results Total Sysco 2Q21 Sales $11.6B 23.1% Gross Profit $2.1B 25.8% 1 Adj. Operating Income $234M 62.7% 1 $0.17 Adj. EPS 80.0% Profitable quarter despite a 23% decline 1 See Non-GAAP reconciliations at the end of the presentation. 11
Slide 12: 2Q21 U.S. Foodservice Results
2Q21 U.S. Foodservice Results U.S. U.S. Foodservice Foodservice 2Q21 Sales $7.9B 23.9% Gross Profit $1.6B 23.9% 1 $1.1B Adj. Operating Expenses 18.9% 1 $472M Adj. Operating Income 33.4% Record number of new customers in U.S. Foodservice Segment 1 See Non-GAAP reconciliations at the end of the presen
Slide 13: 2Q21 SYGMA Results
2Q21 SYGMA Results SYGMA 2Q21 Sales $1.5B 4.4% Gross Profit $129M 4.1% 1 Adj. Operating Expenses $118M 4.0% 1 $11M Adj. Operating Income 4.7% Second consecutive quarter of SYGMA sales growth 1 See Non-GAAP reconciliations at the end of the presentation. 13
Slide 14: 2Q21 International Results
2Q21 International Results International 2Q21 Sales $2.0B 31.9% Gross Profit $374M 36.2% 1 Adj. Operating Expenses $429M 16.2% 1 Adj. Operating Loss ($55M) 174.6% Continued restrictions in the countries in which we operate 1 See Non-GAAP reconciliations at the end of the presentation. 14
Slide 15: $8 billion of Liquidity
$8 billion of Liquidity First 26 Weeks First 26 Weeks of FY20 of FY21 Cash from Ops $754M $937M $182M Free Cash Flow1 $371M $788M $417M In-line with first 26 weeks cash flow expectations 1 See Non-GAAP reconciliations at the end of the presentation. 15
Slide 16: We Remain Focused on Investments for Long-Term Accelerated Growth
We Remain Focused on Investments for Long-Term Accelerated Growth Sysco is not just managing the COVID disruption – we are substantially transforming our company for long-term improvement We are confident in our ability to accelerate future growth via our transformational business strategy We delive
Slide 17: At the heart of food and service
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, 2Q21
Impact of Certain Items, 2Q21 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 Dec. 26, 2020 Dec. 28, 2019 in Dollars % Change O
Slide 21: Impact of Certain Items, 2Q21 (Segment)
Impact of Certain Items, 2Q21 (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 Dec. 26, 2020 Dec. 28, 2019 in Dollar
Slide 22: Impact of Certain Items, 1H21
Impact of Certain Items, 1H21 Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items (Dollars in Thousands, Except for Share and Per Share Data) 26-Week 26-Week Period Ended Period Ended Change Dec. 26, 2020 Dec. 28, 2019 in Dollars % Change O
Slide 23: 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