Aramark · NYSE:ARMK
Aramark — Investor Presentation (May 2005)
16 slides from Aramark's investor presentation, May 18, 2005
Slide 1: Ravi Saligram, President, ARAMARK
Ravi Saligram President ARAMARK
Slide 2: International's Reported Revenues
ARAMARK International’s Reported Revenues $’s in billions 1 3 % CAGR $1.0 $1.0 $1.1 $1.2 $1.4 $1.8 1999 2000 2001 2002 2003 2004
Slide 3: International's True Size and Scope
ARAMARK International’s True Size and Scope 2004 Reported Revenues $1.8 billion 2004 Revenues Including JV’s $3.1 billion UK Canada Other Korea Belgium Spain Chile Germany Majority Owned Subs Japan Ireland Includes $1.8 billion of international sales as reported plus $1.3 billion of sales from minor
Slide 4: Concentration in Europe with Growth in Asia and the Americas
Concentration in Europe with Growth in Asia and the Americas Americas Europe Asia
Slide 5: International's Operating Income Growth
ARAMARK International’s Operating Income Growth $’s in millions 16% CAGR Operating Margin $32 $40 $39 $46 $60 $66 3.3% 3.6% 1999 2000 2001 2002 2003 2004
Slide 6: Consumer Trends in Europe and Japan
Consumer Trends in Europe and Japan Consumer Demographic/ Behavioral Shift Trends ARAMARK Implications/Response Obesity/ Well Being Single Households Aging Population Healthy Options Convenience Snacking Senior Homes Fresh Foods/Menus Grab’n Go, Coffee Bars C Stores Growth in Senior Sector
Slide 7: Client Trends in Europe and Japan
Client Trends in Europe and Japan Client Behavioral Shift Trends ARAMARK Implications/Response B&I Maturing Hospital Cost Pressures Fixed Price/P&L Increased Outsourcing End-Consumer Focus Focus on Hospitals Sector; Utilize US Expertise
Slide 8: Driving Added Value to Clients: Success Stories
Driving Added Value to Clients: Success Stories Sector Defence (MOD) Healthcare S&E Country UK China Spain Site Wattisham Punan Hospital, Shanghai Montemelo Race Track Theme Retail Innovation Pioneering Partnership Drive Attendance Results # of transactions tripled, average spend doubled Client elim
Slide 9: International Strategies
ARAMARK International Strategies 1. Achieve a top 3 presence in countries representing 80%+ of world’s GDP 2. Accelerate organic growth . . . build B&I, diversify into Healthcare, Education and S&E 3. Drive margin improvement 4. Selective acquisitions 5. Focus on the end consumer
Slide 10: #1: "Top 3" Position
Strategy #1: “Top 3” Position Region Major Countries World % GDP ARAMARK Top 3 Position Europe Germany 6.6% Y UK 4.9% Y Ireland* 0.4% Y Spain 2.3% Y Belgium 0.8% Y Czech Republic 0.2% Y Asia Japan 11.9% Y S. Korea 1.7% N China* 3.9% N/A Americas Canada 2.3% Y Mexico 1.7% Y Chile* 0.2% Y Argentina* 0
Slide 11: #2: Accelerating Organic Growth
Strategy #2: Accelerating Organic Growth Greenfield Geographic Adjacencies New Sectors/Services Base Business Growth Net New Business Growth
Slide 12: Build B&I
Strategy #2: Build B&I Base business growth Wins based on tangible value proposition Expertise in nil subsidy P&L’s New retail oriented concepts Entry into new/developing countries, e.g. China
Slide 13: Diversify Growth Sectors
Strategy #2: Diversify Growth Sectors Healthcare Specialty Education S&E S&E 2% Other 7% Education 6% Specialty 10% H/C 15% B&I 60%
Slide 14: Healthcare and Education – Opportunities for Self Op Conversion
Strategy #2: Healthcare and Education –Opportunities for Self Op Conversion Total Opportunity ($ in billions) % Contracted Europe Healthcare $43 14% Europe Education $22 22% Source—Gira
Slide 15: #3: Drive Ongoing Margin Improvement
Strategy #3: Drive Ongoing Margin Improvement Focusing on unit level contribution Driving top line growth Achieving economies of scale Investing in IT tools and metrics
Slide 16: #4: Acquisitions
Strategy #4: Acquisitions Existing countries to enter new sectors…build depth New countries…increase reach Bolt-ons…drive synergies New services…expanded offerings