Slide 1: Q4 and Full Year Fiscal 2022 Earnings Results
Q4 and Full Year Fiscal 2022 Earnings Results NOVEMBER 15, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Special Note About Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumpti
Slide 3: Today's Agenda
Today’s Agenda Review Q4 performance and recap progress throughout fiscal 2022 1 - Including record Net New Business results Preview expectations for fiscal 2023 that is anticipated to build on 2 momentum established by the business Provide update on previously announced Uniform Services spin-off 3
Slide 4: Record Net New Business Performance in FY 2022
Record Net New Business Performance in FY 2022 Annualized New Business Wins Retention Annualized Net New Business (in millions) (in millions) $790 $1,800 96.0% $800 $1,607 $1,600 95.5% $700 95.5% 95.3% $1,400 $1,240 $600 $1,200 95.0% $505 $995 $500 $1,000 94.5% $400 $800 94.0% $300 $600 94.0% $200 $
Slide 5: Significant Net Growth Performance Across All Segments
Significant Net Growth Performance Across All Segments FSS US: Annualized Net New Business $413 $450 $350 $296 • Net New Business 40% higher than fiscal 2021 $250 $150 • Significant gross new business wins across portfolio, particularly Facilities, Healthcare $50 ($50) $(14) and Corrections 5-year A
Slide 6: Source of Wins: Broad-Based Opportunities for Outsourcing
Source of Wins: Broad-Based Opportunities for Outsourcing Source of Wins (in millions) $1,800 $1,600 $1,607 • Capitalized on greater first-time outsourcing opportunities $1,400 $1,240 • Over 45% of wins from self-op conversions, including 6 of top $1,200 10 largest wins in U.S. $995 $1,000 • Additio
Slide 7: Driving Revenue Performance Across All Segments
Driving Revenue Performance Across All Segments % of Fiscal ’19 Organic Revenue 120% 110% 100% +26% 90% Organic Growth 80% 70% 60% 50% Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Revenue performance reflects record-level net growth, pricing, and ongoing base recovery ($61)
Slide 8: Progress on Spin Action Items
Progress on Spin Action Items - Creating two industry-leading, distinctly focused independent companies - Ongoing progress on operational separation, including: - Hiring key executives to complement Uniforms leadership team - Identifying candidates for new Board of Directors - Preparing carve-out fi
Slide 9: People and Planet
Contributing to the Greater Good Greenhouse Gas Reduction Plant-Based Offerings Last month, Aramark submitted proposed In partnership with the Humane Society, greenhouse gas reduction targets of 25% Aramark announced commitment that by 2030 for validation by the at least 44% of residential dining Sc
Slide 10: Committed to Strategic Priorities
Committed to Strategic Priorities - Reestablish a Growth Culture… …to capture the huge addressable opportunity - Rebuild the Hospitality, Field-Focused Mindset… …to drive field ownership and client retention - Build Margin through Scale… …to leverage the Supply Chain and Above Unit Overhead base And
Slide 11: Record Net New Business Performance in FY 2022
Record Net New Business Performance in FY 2022 Annualized New Business Wins Retention Annualized Net New Business (in millions) (in millions) $790 $1,800 96.0% $800 $1,607 $1,600 95.5% $700 95.5% 95.3% $1,400 $1,240 $600 $1,200 95.0% $505 $995 $500 $1,000 94.5% $400 $800 94.0% $300 $600 94.0% $200 $
Slide 12: Significant Momentum Across the Business
Significant Momentum Across the Business Organic Revenue and AOI Margin Are on the Rebound… …Free Cash Flow is Rebuilding… $20 Organic Revenue AOI Margin % 10.0% $500 (in billions) $400 8.0% $15 $300 6.0% $200 $10 4.0% $100 $5 $0 2.0% ($100) $0 0.0% ($200) FY18 FY19 FY20 FY21 FY22P FY23P FY18 FY19 F
Slide 13: On Track for Delivering FY2025 Goals
On Track for Delivering FY2025 Goals Revenue AOI Margin Leverage >$20B 7.0%-7.5% 3.0x-3.5x 13
Slide 14: Revenue Exceeds Pre-COVID Level
Revenue Exceeds Pre-COVID Level Quarterly Revenue Trajectory vs. Pre-COVID levels 120% 100% • Sequential quarterly revenue improvement relative to 80% pre-COVID levels • Consistent with Analyst Day outlook, recovery of 60% COVID-related volumes reached ~90% in fiscal 2022 • Expect continued volume r
Slide 15: Adjusted Operating Income Growth and Margin Expansion
Adjusted Operating Income Growth and Margin Expansion Fourth Quarter Adjusted Operating Income AOI Margin (in millions) $300 7.0% $267 6.2% $250 6.0% +136bps $200 $168 +62% +62% 5.0% 4.7% 4.0% $150 3.0% $100 2.0% $50 1.0% $0 0.0% Q4 '21 Q4 '22 Q4 '21 Q4 '22 Full Year Fiscal 2022 Adjusted Operating I
Slide 16: Tactical In-Unit Cost Management
Tactical In-Unit Cost Management Focused on the Basics to Manage In-Unit Costs - Drives productivity and efficiencies to offset inflation - Accelerates strategic innovation that creates solutions for clients Food Labor Directs • Menu optimization • Self-service solutions (i.e.Mashgin) • Process opti
Slide 17: Higher New Wins and Retention Drive Improved Margins
Higher New Wins and Retention Drive Improved Margins Overall Result (Pre-COVID) New Business Wins* Retained Accounts* 15.0% 15% Retention 14.0% Event 13.0% 13% 12.0% 11.0% 11% 10.0% ~(4)% 9% 9.0% ~11% 8.0% 7.0% 7% 6.0% 6.7% 5.0% 5% 4.0% 3.0% 3% 2.0% 1.0% 1% 0.0% Year 1 Year 2 Year 3 Year 4 Year 5 -1
Slide 18: Free Cash Flow Generation
Free Cash Flow Generation Free Cash Flow (in millions) Q1 Q2 Q3 Q4 FY $717 $278 $330 FY22 ($96) ($569) $259 $292 $282 FY21 ($180) ($89) Q1 Q2 Pre-COVID Reference Q3 Point Q4 FY $620 $499 $187 $13 FY19 ($321) $713 $210 $429 FY18 ($64) ($429) 18
Slide 19: Proactive Debt Maturity Management
Proactive Debt Maturity Management Capital Structure AR Facility Term Loans Senior Notes Floating 19% April 2020 Notes Revolver Unsecured Secured $1,665 47% 53% Fixed 81% No significant $870 maturities until • Over 80% Fixed Interest Rates, inclusive of swaps 2025 $730 $335 • Balanced Secured vs. Un
Slide 20: Fiscal 2023 Outlook Builds on Momentum
Fiscal 2023 Outlook Builds on Momentum Aramark currently expects the following full-year total Company performance for fiscal 2023: - Organic revenue growth between +11% and +13%, driven by Net New Business, pricing and ongoing base recovery - Adjusted Operating Income (AOI) growth of +34% to +39% -
Slide 21: Reach For Remarkable
Reach For Remarkable SERVICE. INNOVATION. GROWTH. aramark yr
Slide 22: Appendix
APPENDIX aramark 3 MA Reach For Remarkable SERVICE. INNOVATION. GROWTH.
Slide 23: Modeling Assumptions
Modeling Assumptions Fiscal 2023 Outlook Low High Organic Revenue $18.1 billion $18.4 billion Organic Revenue Growth +11% +13% Revenue $17.9 billion $18.2 billion Revenue Growth +9.5% +11.5% FX (at current rates) -2.5% M&A 1.0% AOI $1,045 million $1,085 million AOI Growth +34% +39% Free Cash Flow* $
Slide 24: Selected Operational and Financial Metrics
Selected Operational and Financial Metrics Adjusted Revenue (Organic) Adjusted Revenue (Organic) represents revenue growth, adjusted to eliminate the effect of certain material acquisitions and divestitures, the estimated impact of the 53rd week and the impact of currency translation. Adjusted Opera
Slide 25: Non-GAAP Schedules
Non-GAAP Schedules aramark 3 MA Reach For Remarkable SERVICE. INNOVATION. GROWTH
Slide 26: Adjusted Consolidated Operating Income Margin
Adjusted Consolidated Operating Income Margin 26
Slide 27: Adjusted Net Income (Loss) & Adjusted Earnings (Loss) Per Share
Adjusted Net Income (Loss) & Adjusted Earnings (Loss) Per Share 27
Slide 28: Net Debt to Covenant Adjusted EBITDA
Net Debt to Covenant Adjusted EBITDA 28
Slide 29: Free Cash Flow
Free Cash Flow ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES FREE CASH FLOW (Unaudited) (In thousands) Three Months Ended Three Months Ended Six Months Ended Three Months Ended Nine Months Ended Three Months Ended Fiscal Year Ended December 31, 2021 April 1, 2022 April 1, 2022 July 1,
Slide 30: Adjusted Revenue Comparison to Fiscal 2019
Adjusted Revenue Comparison to Fiscal 2019 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES ADJUSTED REVENUE COMPARISON TO FISCAL 2019 (Unaudited) (In thousands) Three Months Ended June 26, 2020 October 2, 2020 January 1, 2021 April 2, 2021 July 2, 2021 October 1, 2021 December 31, 2021
Slide 31: Adjusted Operating Income Comparison to Fiscal 2019
Adjusted Operating Income Comparison to Fiscal 2019 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES ADJUSTED OPERATING INCOME MARGIN COMPARISON TO FISCAL 2019 (Unaudited) (In thousands) Three Months Ended October 1, 2021 September 30, 2022 Revenue $ 3,551,264 $ 4,390,457 Effect of Certa
Slide 32: Adjusted Consolidated Operating Income Margin Trend
Adjusted Consolidated Operating Income Margin Trend ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN (Unaudited) (In thousands) Fiscal Year Ended September 28, 2018 September 27, 2019 October 2, 2020 October 1, 2021 September 30, 2022 Revenue
Slide 33: Net Debt to Covenant Adjusted EBITDA Trend
Net Debt to Covenant Adjusted EBITDA Trend ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES NET DEBT TO COVENANT ADJUSTED EBITDA (Unaudited) (In thousands) Twelve Months Ended September 28, 2018 September 27, 2019 October 2, 2020 October 1, 2021 September 30, 2022 Net Income (Loss) Attri
Slide 34: © 2022 Aramark. All Rights Reserved.
© 2022 Aramark. All Rights Reserved. The information contained in this document is confidential and proprietary to Aramark Corporation and its affiliates and provides Aramark with a competitive advantage in the marketplace. Any disclosure, copying, distribution, publication (including, without limit