Slide 1: Q2 Fiscal 2024 Earnings Results
TOGETHER WE ARE Q2 Fiscal 2024 Earnings Results May 7, 2024
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: Overview
Overview 1 Strong Business Performance 2 Continued Momentum from Growth Strategies 3 Fiscal 2024 Outlook TOGETHER WE ARE 3
Slide 4: Summary of Q2 Fiscal 2024 Results
Summary of Q2 Fiscal 2024 Results - Revenue +7%; Organic Revenue +9% - Growth from strong base business volume, pricing actions, and net new business - Record revenue in a second quarter for both the FSS U.S. and International segments - Operating Income +27%1; Adjusted Operating Income (AOI) +29%2
Slide 5: Driving Revenue Growth Across Segments
Driving Revenue Growth Across Segments $84 $4,283 +9% Organic Growth Continued strong performance led by base business volume, pricing actions, and net new business +7% +16% Organic Growth Organic Growth *Charts displayed in $ millions Totals may not foot due to rounding TOGETHER WE ARE 5
Slide 6: Portfolio Drivers
Portfolio Drivers ▪ Collegiate Hospitality experienced enhanced culinary partnerships and new business wins, as well as innovation Education leading to increased participation ▪ Sports experienced strong attendance levels and per cap spending in Stadiums and Arenas; expanded our grab-and-go micro-ma
Slide 7: Adjusted Operating Income Growth and Margin Expansion
Adjusted Operating Income Growth and Margin Expansion AOI Margin Aramark +69 bps 4.5% $200 3.8% $150 Increased profitability from leveraging higher revenue, $100 +29% $187.4 supply chain efficiencies and strategies, and disciplined $147.4 control of costs $50 $- Q2 '23 Q2 '24 FSS United States AOI M
Slide 8: Summary: Strong Performance Trajectory Expected
Summary: Strong Performance Trajectory Expected - Clear, consistent strategic priorities - Strong, sustainable growth framework firmly in place - Hospitality, client focused culture creates significant opportunities - Confidence in ability to go “to and through” financial targets - Focused on delive
Slide 9: Fiscal 2024 Outlook
Fiscal 2024 Outlook As a result of Aramark's strong performance in the first half of fiscal 2024, the Company raised its full-year Outlook for Organic Revenue growth, after indicating AOI growth and adjusted EPS growth would be toward the higher end of the range last quarter. Aramark currently antic
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Slide 11: Appendix
APPENDIX TOGETHER WE ARE 11
Slide 12: Modeling Assumptions
Modeling Assumptions FY24 Modeling Assumptions • Net Interest Expense: ~$330M • Adjusted Tax Rate: ~26% • Share count: ~267M Seasonality: • AOI Margin – “U-shaped” cadence driven primarily by higher profitability in Q1 and Q4 related to seasonal peak activity in Education sector and the Sports & Ent
Slide 13: Revenue by Segment
Revenue by Segment * Beginning in fiscal 2024, the Company began reporting results for Healthcare Facility Services within "Healthcare," whereas the results were previously reported within "Facilities & Other." As such, the "Healthcare" and "Facilities & Other" Fiscal 2023 results were recast to ref
Slide 14: CapEx and Client Payments
CapEx and Client Payments TOGETHER WE ARE 14
Slide 15: Quarterly Cadence of Free Cash Flow
Quarterly Cadence of Free Cash Flow (in Millions) Q1 Q2 Q3 Q4 FY FY24 $140 ▪ As expected, the second quarter experienced a cash inflow ▪ Current quarter included ~$25M of fees from the completion of the spin transaction, higher income tax payments and slightly more capital expenditures ($768) $807 ▪
Slide 16: Selected Operational and Financial Metrics
Selected Operational and Financial Metrics Adjusted Revenue (Organic) Adjusted Revenue (Organic) represents revenue, adjusted to eliminate the impact of currency translation. Adjusted Operating Income Adjusted Operating Income represents operating income adjusted to eliminate the change in amortizat
Slide 17: Selected Operational and Financial Metrics (continued)
Selected Operational and Financial Metrics (continued) Covenant Adjusted EBITDA Covenant Adjusted EBITDA represents net income from continuing operations attributable to Aramark stockholders adjusted for interest expense, net; provision for income taxes; depreciation and amortization and certain oth
Slide 18: Non-GAAP Schedules
Non-GAAP Schedules TOGETHER WE ARE 18
Slide 19: Adjusted Operating Income Margin
Adjusted Operating Income Margin TOGETHER WE ARE 19
Slide 20: Adjusted Net Income and Adjusted Earnings Per Share
Adjusted Net Income and Adjusted Earnings Per Share TOGETHER WE ARE 20
Slide 21: Net Debt to Covenant Adjusted EBITDA
Net Debt to Covenant Adjusted EBITDA TOGETHER WE ARE 21
Slide 22: Free Cash Flow
Free Cash Flow TOGETHER WE ARE 22
Slide 23: aramark
aramark