Sysco Corporation · NYSE:SYY
Sysco — Barclays Global Consumer Staples Conference 2023
27 slides from Sysco's conference presentation, Sep 6, 2023
Slide 1: Barclays Global Consumer Staples Conference 2023
September 6, 2023 Barclays Global Consumer Staples Conference 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements made in this presentation 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 of 1995. Such forward-looking statements reflect the views of manage
Slide 3: Kevin Hourican, President & Chief Executive Officer
KEVIN HOURICAN President & Chief Executive Officer
Slide 4: Sysco is the Backbone of the Food Away From Home Industry and Growing Share
Sysco is the Backbone of the Food Away From Home Industry and Growing Share FY2023 Total Sysco Sales 8% Travel and Leisure 15% Other 7% Healthcare 62% Restaurants 8% Education and Government $76.3B ~725K In Annual Sales Customer Locations Operations IFG ~7,500 72K+ Colleagues Across Sales Consultant
Slide 5: Market Leader in the Highly Fragmented and Growing Foodservice Distribution Industry
Market Leader in the Highly Fragmented and Growing Foodservice Distribution Industry Total Addressable Market Since 2000 $353 B 17% $300 B $268 B $224 B $231 B $197 B $161 B $353 B 2000 2005 2010 2015 2020 2021 2022 5 Technomic U.S. Foodservice Industry Wallchart for Calendar Year, updated May 2023
Slide 6: Recipe for Growth
2) RECIPE FOR GROWTH | v Personalized, Digital Experience Y, Great Products at the Right Price vi Flexible, Efficient supply Chain ervice Expertise as 4 Always Leading the Industry ‘ S ; C /: the hi > food and Nuiee
Slide 7: Today, we are Reiterating our FY24 Guidance
Today, we are Reiterating our FY24 Guidance Net Sales ~$80 billion, Mid-single digits growth Adjusted EPS $4.20-$4.40, ~5-10% growth
Slide 8: Kenny Cheung, Chief Financial Officer
Kenny Cheung Chief Financial Officer
Slide 9: Record Performance in FY23 and Positioned for Growth
Record Performance in FY23 and Positioned for Growth Net Sales Adj. EBITDA1 Adj. EPS1 (billions) (billions) $4.01 $76.3 $3.25 $68.6 $3.8 $3.3 $51.3 $2.2 $1.44 FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 FY 2023 GAAP Operating Income +29.5% to $3.0B vs FY 2022 9 1 See Non-
Slide 10: USFS: Sequential Improvement with Adjusted Operating Expense and Strong Q4 Exit Rate
USFS: Sequential Improvement with Adjusted Operating Expense and Strong Q4 Exit Rate Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 YoY YoY YoY YoY (1500 bps) (1180 bps) (430 bps) +180 bps 22.3% 17.0% 10.4% 2.3% 6.1% 7.3% 5.2% 0.5% Adj. Opex Volume Adj. Opex Volume Adj. Opex Volume Adj. Opex Volume Growth1 Growth
Slide 11: Record Free Cash Flow, Strong Investment Grade Credit Rating
Record Free Cash Flow, Strong Investment Grade Credit Rating Cash from Operations Free Cash Flow1 Net Debt to Adj. (millions) (millions) EBITDA1 $2,116 5.2x $2,868 $1,791 $1,183 2.5x FY 2022 FY 2023 FY 2022 FY 2023 Q3’ 2021 Q4’ 2023 1 11 1See Non-GAAP reconciliations at the end of the presentation.
Slide 12: Capital Allocation Anchored by Strong Cash Generation
Capital Allocation Anchored by Strong Cash Generation Investment Priority Progress 1 Invest for Growth • Capital investments in our technology, fleet and buildings Maintain a Strong • Maintaining a strong investment grade rating; ended FY 2023 with a 2 Balance Sheet net debt to adjusted EBITDA1 rati
Slide 13: Strong Cash Generation Drives Shareholder Returns
Strong Cash Generation Drives Shareholder Returns Cumulative Cash Returned to Shareholders $16.7 B $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 FY2024 (Expected) Dividends Shares Repurchased Sysco has increased divi
Slide 14: Sysco: At the heart of food and service
S/sco At the heart of food and service
Slide 15: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS food and service
Slide 16: Impact of Certain Items
Impact of Certain Items The discussion of our results includes certain non-GAAP financial measures, including 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 denot
Slide 17: Non-GAAP Reconciliation: Impact of Certain Items, FY23, FY22, & FY21
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items, FY23, FY22, & FY21 (Dollars in Thousands, Except for Share and Per Share Data) 52-Week 52-Week 53-Week Period Ended Period Ended Period Ended Jul. 1, 2023 Jul. 2, 2022 Jul. 3, 2021 Sales
Slide 18: Non-GAAP Reconciliation: Impact of Certain Items, FY23, FY22, & FY21 (continued)
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items, FY23, FY22, & FY21 (Dollars in Thousands, Except for Share and Per Share Data) continued Net earnings (GAAP) $ 1,770,124 $ 1,358,768 $ 524,209 Impact of inventory valuation adjustment (2)
Slide 19: Segment Results Non-GAAP Reconciliation, Q1 FY23 vs. Q1 FY22
Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments, Q1 FY23 vs. Q1 FY22 (Dollars in Thousands) 13-Week 13-Week Period Ended Period Ended Change Oct. 1, 2022 Oct. 2, 2021 in Dollars %/bps Change U.S. F
Slide 20: Segment Results Non-GAAP Reconciliation, Q2 FY23 vs. Q2 FY22
Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments, Q2 FY23 vs. Q2 FY22 (Dollars in Thousands) 13-Week 13-Week Period Ended Period Ended Change Dec. 31, 2022 Jan. 1, 2022 in Dollars %/bps Change U.S.
Slide 21: Segment Results Non-GAAP Reconciliation, Q3 FY23 vs. Q3 FY22
Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments, Q3 FY23 vs. Q3 FY22 (Dollars in Thousands) 13-Week 13-Week Period Ended Period Ended Change Apr. 1, 2023 Apr. 2, 2022 in Dollars %/bps Change U.S. F
Slide 22: Segment Results Non-GAAP Reconciliation, Q4 FY23 vs. Q4 FY22
Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments, Q4 FY23 vs. Q4 FY22 (Dollars in Thousands) 13-Week 13-Week Period Ended Period Ended Change Jul. 1, 2023 Jul. 2, 2022 in Dollars %/bps Change U.S. F
Slide 23: Free Cash Flow, YTD23 vs. YTD22
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Free Cash Flow, YTD23 vs. YTD22 (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.
Slide 24: Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) EBITDA represents net earnings (loss) plus (i) interest expense, (ii) income tax expense and benefit, (iii) depreciation and (iv) amortization. The net earnings (loss) component of our EBITDA calculation is impacted by Certain I
Slide 25: Impact of Certain Items on EBITDA (FY23, FY22, & FY21)
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (FY23, FY22, & FY21) (In Thousands) 52-Week 52-Week 53-Week Period Ended Period Ended Period Ended Jul. 1, 2023 Jul. 2, 20
Slide 26: Net Debt to Adjusted EBITDA
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Net Debt to Adjusted EBIDTA (In Thousands) Net Debt to Adjusted EBITDA is a non-GAAP financial measure frequently used by investors and credit rating agencies. Our Net Debt to Adjusted EBITDA ratio is calculated
Slide 27: Projected Adjusted EPS Guidance
Projected Adjusted EPS Guidance Adjusted earnings per share is a non-GAAP financial measure; however, we cannot predict with certainty certain items that would be included in the most directly comparable GAAP measure for the relevant future periods. Due to these uncertainties, we cannot provide a qu
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