Sysco Corporation · NYSE:SYY
Sysco — Deutsche Bank Global Consumer Conference 2025
34 slides from Sysco's conference presentation, Jun 3, 2025
Slide 1: Deutsche Bank Global Consumer Conference 2025
Deutsche Bank Global Consumer Conference 2025 June 3, 2025
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. These statements include statements concerning: our expecta
Slide 3: Kevin Hourican
Kevin Hourican CHAIR OF THE BOARD AND CHIEF EXECUTIVE OFFICER 3
Slide 4: Sysco Business at a Glance
Sysco Business at a Glance Only Global Player Leading Market Share + Best-in-Class Food Export Business 1 $81+ billion 76,000 340 in Expected FY25 Distribution Global Colleagues Sales Facilities #1 Market ~7,500 ~730K Share1 Sales Professionals Customer Locations Sales by Customer Type # 1 #1 market
Slide 5: Food Away From Home Continues to Gain Share
Food Away From Home Continues to Gain Share Percentage of Combined Monthly Sales (2002 - 2025) 70% 65% 60% 55% 50% 45% 40% 35% 30% Grocery Stores Food Services and Drinking Places Source: The United States Census Bureau Advance Monthly Sales for Retail and Food Services 5
Slide 6: Growing Sales in 53 out of 56 Years
Growing Sales in POSITIONED TO WIN 53 out of 56 Years • #1 position across National, Local, and $90 Specialty $80 ▪ Robust cross-selling Fiscal Year Sales in Billions $70 opportunities with $60 Broadline scale & $50 11% specialty expansion to fuel future sales growth $40 CAGR $30 • International seg
Slide 7: Sysco is #1 in an Attractive, Growing Industry
Sysco is #1 in an Attractive, Growing Industry Total Addressable Market Since 2000 $353 B $360 B $370 B 17% $300 B $268 B $224 B $231 B $197 B $161 B $370B 2000 2005 2010 2015 2020 2021 2022 2023 2024 Source: Technomic U.S. Foodservice Industry Wallchart for Calendar Year as of April 2025 7
Slide 8: Sysco Has A Compelling Global Foodservice Model
United States: #1 Position Sysco Has A Compelling Ireland: #1 Position 15.4% 17.4% $370B Global Foodservice Model 14.9% 19.7% $4B TAM TAM 2019 2024 2019 2024 Canada: #1 Position Great Britain: #1 Position 26.0% 13.7% 24.0% 10.1% $23B $27B TAM TAM 2019 2024 2019 2024 Sweden: #2 Position Bahamas: #1 P
Slide 9: Enhancing Today, While Shaping Tomorrow Through a Focus on Core Strengths
Enhancing Today, While Shaping Tomorrow Through a Focus on Core Strengths CONTINUE TO ADVANCE OUR RECIPE FOR GROWTH FOCAL POINTS Local Growth Vectors 9
Slide 10: Actions Driving Stronger Near-Term Local Case Growth
Actions Driving Stronger Near-Term Local Case Growth Strengthened New Customer Win Rate Significantly Selling Initiatives Improved Gaining Traction: Compelling Sales Supply Colleague Chain Retention Service Levels 10
Slide 11: Actions Driving Sustainable Medium-Term Growth
Actions Driving Sustainable Medium-Term Growth Salesforce Investment Capacity & Cuisine Expansion 1,000 Salesforce Investments 750 750 300 500 450 250 450 - Local Case FY24 FY25E Growth Momentum Total Team Selling Selling Initiatives Drivers US Broadline Only $ US Broadline + One Specialty 3x Higher
Slide 12: Vectors of Long-Term Growth
Vectors of Long-Term Growth Sysco Brand International Specialty US Broadline 11% 17% 26% CAGR CAGR $15 CAGR $18 Sysco Specialty Sales in bil. Sysco International Sales in bil. $10 Sysco Brand Sales in bil. $12 $8 $4 FY21 FY25E FY21 FY25E FY21 FY25E Long-Term Accretive M&A 12
Slide 13: Kenny Cheung
Kenny Cheung EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 13
Slide 14: Advancing Our Leading Industry Position
Advancing Our Leading Industry Position Attractive Return Net Sales Adj. EPS 1 Profile in Billions 12% 32% CAGR $81 + CAGR #1 Market Share $76 $79 $4.01 $4.31 $4.37 + Industry Leading: $69 • Sales $3.25 $51 • Gross Margins $1.44 • EBITDA Margins • Free Cash Flow • ROIC • Investment Grade Balance She
Slide 15: Superior Performance vs. Core Peers
Superior Performance vs. Core Peers Adj. Operating Gross Margin Margin1 Free Cash Flow1 Dividend Yield 20% 5% $2,500 in Mil. 4% 18.5% $2,236 4.4% $2,000 3.1% 14.3% 4% 3% 15% 1.3x 1.6x 2.9x 3% 2.7% $1,500 10% 2% 2% $1,000 $759 5% 1% 1% $500 No Dividends Paid 0% 0% $- 0% Core Peers Sysco Core Peers Sy
Slide 16: ROIC Growth Mindset
ROIC Growth Mindset Leverage Industry Leading ROIC1 Profile Size & Scale + 20.0% Structural Cost Outs 16.0% 15.9% 11.9% Long-Term 12.0% Accretive ROIC FOCUS 8.0% 7.0% M&A 4.0% Strategic Reallocation 0.0% of Capital Core Peers Median S&P 500 Sysco Consumer Staples FY24 1 Represents adjusted ROIC for
Slide 17: Underpinned by Balanced Capital Allocation
Underpinned by Balanced Capital Allocation Invest for Maintain a Strong Return Cash to Growth Balance Sheet Shareholders Capex Investments Commitment to Balanced Shareholder ~1% of Annual Sales Investment Grade Rating Return with Growing with Net Leverage Target Dividend & Share of 2.50x – 2.75x1 Re
Slide 18: Solid Operating Cash Flow Generation
Solid Operating Cash Flow Generation • Strong operating cash flow generation to support business investment and $3,750 100% Operating Cash Flow $ in Millions capital return Operating Cash Flow Conversion $2,989 $3,000 80% Adjusted EBITDA to $2,250 60% • Expect strong $1,791 conversion rates1 $1,500
Slide 19: Investment Grade Balance Sheet
• Only foodservice Investment Grade distributor with investment grade Balance Sheet rating 4.0x 3.7x Credit Rating: • Industry leading BBB/Baa1 balance sheet with Net Debt / Adjusted EBITDA 2.9x ~$4 billion of liquidity 3 3.0x 2.7x 2.5x 2.50x - 2.75x meaningfully outpacing minimum 2.0x thresholds •
Slide 20: Strong Cash Generation Drives Shareholder Returns
Strong Cash Generation Drives Shareholder Returns $19.5 Over $19.5 billion $19.5 $17.2 of cumulative cash expected to $15.0 $13.5 Dividends Share Repurchase $11.1 $12.0 be returned to shareholders $9.4 Dividends Share Repurchase $7.6 $5.9 through FY 2025 Y25E $3.3 $0.7 FY15 FY16 FY17 FY18 FY19 FY20
Slide 21: Sysco is a Dividend Aristocrat, On Track For 56 Years of Dividend Growth
Sysco is a Dividend Aristocrat, On Track For 56 Our planned quarterly Years of Dividend Growth cash dividend recently increased by 6% to $0.60 $0.50 $0.54 per share. Quarterly Per Share Dividends $0.40 15% Going forward, expect $0.30 CAGR dividend growth $0.20 commensurate with $0.10 adjusted EPS gr
Slide 22: Kevin Hourican
Kevin Hourican CHAIR OF THE BOARD AND CHIEF EXECUTIVE OFFICER 22
Slide 23: Compelling Investment Opportunity
COMPELLING INVESTMENT OPPORTUNITY Market leader in foodservice with key strategic advantages and significant scale, benefitting from FAFH trends Resilient business model, balanced across end geographies, channels, and product mixes Multiple vectors of growth in international, core volumes and throug
Slide 24: [ the heart of
[ the heart of food and service S/Sco [+ food and service
Slide 25: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS 25
Slide 26: 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 EBITDA and free cash flow, any non-GAAP financial measures wi
Slide 27: Non-GAAP Reconciliation: Impact of Certain Items
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items (Dollars in Millions, Except for Share and Per Share Data) 52-Week 52-Week 52-Week 53-Week Period Ended Period Ended Period Ended Period Ended Jun. 29, 2024 Jul. 1, 2023 Jul. 2, 2022 Jul.
Slide 28: Non-GAAP Reconciliation: Impact of Certain Items (continued)
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items (Dollars in Millions, Except for Share and Per Share Data) continued Diluted earnings per share (GAAP) $ 3.89 $ 3.47 $ 2.64 $ 1.02 Impact of inventory valuation adjustment - (0.01) (1) 0.1
Slide 29: Non-GAAP Reconciliation: Adjusted Return on Invested Capital
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Adjusted Return on Invested Capital (In Millions) Although adjusted return on invested capital (ROIC) is considered a non-GAAP financial measure, Sysco management considers adjusted ROIC to be a measure that prov
Slide 30: Non-GAAP Reconciliation: Free Cash Flow
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Free Cash Flow (In Millions) 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. Sysco considers fr
Slide 31: Adjusted EBITDA to Free Cash Flow and Operating Cash Flow Conversion
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Adjusted EBITDA to Free Cash Flow Conversion and Adjusted EBITDA to Operating Cash Flow Conversion (In Millions) Adjusted EBITDA to Free Cash Flow Conversion and Adjusted EBITDA to Operating Cash Flow Conversion
Slide 32: Non-GAAP Reconciliation: Net Debt to Adjusted EBITDA
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Net Debt to Adjusted EBITDA (In Millions) Net Debt to Adjusted EBITDA is a non-GAAP financial measure frequently used by investors and credit rating agencies. It is an important measure used by management to eval
Slide 33: Impact of Certain Items on EBITDA (Trailing Twelve Months)
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (Trailing Twelve Months) (In Millions) 52-Week 52-Week 52-Week 53-Week Period Ended Period Ended Period Ended Period Ended
Slide 34: Net Debt to Adjusted EBITDA Leverage Ratio Targets
Net Debt to Adjusted EBITDA Leverage Ratio Targets We expect to achieve our net debt to adjusted EBITDA leverage ratio forecast in fiscal 2025. We cannot predict with certainty when we will achieve these results or whether the calculation of our EBITDA will be on an adjusted basis in future periods
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