Us Foods Holding Corp. · NYSE:USFD
Us Foods — Debt Investor Presentation (May 2013)
30 slides from Us Foods's debt investor presentation, May 20, 2013
Slide 1: A Taste of What's Cooking at US Foods
Exhibit 99.2 A Taste of What’s Cooking at US Foods Selected Slides from the Lender Presentation May 2013
Slide 2: Forward-looking statements notice
While the information provided herein is believed to be accurate and reliable, US Foods (“US Foods”) does not make any representations or warranties, express or implied, as to the accuracy or completeness of such information or as to future results. No representation or warranty is made that any of
Slide 3: Non-GAAP financial measures
Non-GAAP financial measures This presentation contains unaudited non-GAAP financial measures, including Reported EBITDA, Adjusted EBITDA, Consolidated EBITDA, Debt Coverage Ratio, and Interest Coverage Ratio. Management believes these non-GAAP financial measures provide meaningful supplemental infor
Slide 4: US Foods is a national foodservice distributor with a large customer and supplier base
US Foods is a national foodservice distributor with a large customer and supplier base. nd 2 largest national broadline distributor – 2012 net sales and assets of $21 billion and $9 billion, respectively – 2012 Adjusted EBITDA $841 ¹ million versus GAAP net loss of $51 million – 64 broadline facilit
Slide 5: Scale and portfolio diversity offer opportunities for growth across multiple channels
Scale and portfolio diversity offer opportunities for growth across multiple channels. FY2012 Sales by Customer Type Contract vs Non-Contract Sales Non Contract 30% Restaurants Contract Healthcare 70% Hospitality Education Other Government (2%) 4
Slide 6: Financial performance has come from delivering across multiple areas of the business
Financial performance has come from delivering across multiple areas of the business. Adjusted EBITDA Bridge ($ in millions) +198 +99 +326 $841 (361) +109 $469 YE 2006 Volume Margin Distribution Selling & Admin Cost Inflation YE 2012 Productivity Productivity Note: (1) Reconciliations of US Foods’ n
Slide 7: We have prudently deployed capital to strengthen and expand our market position
We have prudently deployed capital to strengthen and expand our market position and drive operational productivity. Expansions • Added capacity to support local market share gains • Invested ~$425M since 2006 to add over 2.5M sq. ft. of capacity • Avg. IRR for new or expanded facilities is over 30%
Slide 8: Credit Highlights
Credit Highlights 1 Attractive industry fundamentals 2 Leading market position 3 Stable, diversified customer and supplier base 4 Strong financial performance 5 Proven management team 6 Business improvement opportunities 7
Slide 9: Stable, Diversified Customer and Supplier Base
3 Stable, Diversified Customer and Supplier Base – Strong customer and supplier relationships help drive our growth. Customer Distribution ¹ Supplier Distribution % of 2012 % of 2012 Total Sales Total Spend Top 5 Customers 23.9% Top 5 Suppliers 12.1% Top 10 Customers 30.2% Top 10 Suppliers 19.1% Top
Slide 10: Proven Management Team
5 Proven Management Team – Strong industry and functional experience helping drive execution across the organization. Tenure at USF Name Title (TiP / YoS) (yrs) Past experience President and Chief 2/2 Chairman and CEO of Duane Reade John Lederer Executive Officer September 2010 President at Loblaw C
Slide 11: Business Improvement Opportunities
6 Business Improvement Opportunities – Continuing to execute the fundamentals and creating new opportunities for growth. • Thoughtful functionalizing of the business… to build a more effective organization, reduce cost and increase efficiency. • Enhance category management capabilities, while focuse
Slide 12: Functionalizing the business is helping align expertise with accountability
Business Improvement Opportunities – Functionalizing the business is helping align expertise with accountability and drive benefit. ±$400M • HR/Finance: Standardizing responsibilities, processes and practices; leveraging technology • Category Management: Improving merchandising, pricing and assortme
Slide 13: Enhancing our Category Management capabilities
Business Improvement Opportunities – Enhancing our Category Management capabilities to help drive long term growth. The What • New Strategic Vendor • Customer driven innovation Management (SVM) • Drive value through pricing, approach assortment, data • Build Innovation pipeline • 1-to-1 Marketing •
Slide 14: Our marketing properties support our strategy
Business Improvement Opportunities – Our marketing properties support our strategy and are helping to create more profitable and loyal customers. • Next Top Product: 35,000 Next Top Product votes, 5M media impressions • My Kitchen: 67% customer response rate, 91% TM satisfaction rate 13
Slide 15: My Kitchen delivers personalized offers to customers
Business Improvement Opportunities – My Kitchen delivers personalized offers to customers designed to profitably increase account penetration. Up Sell Thank You Cross Sell Sell more of Solidify high Introduce products that are what you are share of wallet important to your customers already selling
Slide 16: Vendor CookBook better leverages sales and purchase information
Business Improvement Opportunities – Vendor CookBook better leverages sales and purchase information to drive insights. Vendor CookBook • One view of the truth • Common language • Drives unit growth and margin $ 15
Slide 17: Food Fanatics will bring Food People to life in local markets
Business Improvement Opportunities – Food Fanatics will allow us to bring “Food People” to life in our local markets. 16
Slide 18: We have launched Cash & Carry to increase penetration and grow share
Business Improvement Opportunities – We have launched Cash & Carry to increase penetration and grow share. Great locations Fastest shop and check-out Exclusive products Impactful fresh presentations and essentials Competitive against relevant, local, operators In store specials 17
Slide 19: Sales model intended to increase customer touch points
Business Improvement Opportunities – Sales model is intended to increase customer touch points and improve Sales Rep effectiveness. Multi channel selling model • Increase sales support to allow Sales Reps to spend less time on administrative activities. Sales Rep dotcom • Equip Sales Reps to call mo
Slide 20: Operational productivity driven by scale, capital investments and best practices
Business Improvement Opportunities – Operational productivity driven by scale, capital investments and leveraging of best practices. Y-O-Y Distribution Productivity • Improving skill set of Supply ($ in millions) Chain leadership $24 • Driving more consistent productivity performance in $17 warehous
Slide 21: Our digital strategy is focused on delivering EASY for our customers
Business Improvement Opportunities – Our digital strategy is focused on delivery “EASY" for our customers. 20
Slide 22: Our strategy and actions are resonating with Restaurant Operators
Our strategy and actions are resonating with Restaurant Operators. Net Promoter Score (for Restaurants) (Based on ~10,000 surveys from P10 2012 to P3 2013) Change from Prior Year Restaurants NPS MOE* US Foods +47 +5 ±1 Competitor A +47 +3 ±6 Competitor B +42 +1 ±6 Competitor C +39 -3 ±3 Competitor D
Slide 23: Credit Highlights
Credit Highlights • Highly stable, growing industry with Attractive Industry Fundamentals proven economic resiliency • ~200,000 customers well-diversified Leading Market Position across regions/geographies and industries/markets Stable, Diversified Customer and Supplier • Increased Adjusted EBITDA 4
Slide 24: Positive operating cash flow helping to pay down debt and invest
Positive operating cash flow helping to pay down debt and invest in high return acquisitions and capital projects. $ IN MILLIONS 2009 2010 2011 2012 LTM Cash from Operating Activities $89 $481 $419 $316 $371 Capital Expenditures, net of Proceeds (146) (258) (297) (274) (204) Acquisitions — — (41) (1
Slide 25: Capital investments tied to projects which we expect will drive EBITDA and cash flow
Capital investments tied to projects which we expect will drive EBITDA and cash flow. Trended Capital Spend ($ in millions) $304 $293 $272 22 31 12 55 75 21 90 Other Capex $165 Fleet 29 Maintenance 11 33 121 Expansions 31 44 IT 27 99 49 95 85 47 57 2009 2010 2011 2012 24
Slide 26: Solid EBITDA growth and cash management has driven improved coverage ratios
Solid EBITDA growth and cash management has driven improved debt and interest coverage ratios… Q1 2013 Financial Performance Credit Statistics Debt / LTM Debt Coverage Interest Coverage As of Consolidated Ratio² Ratio³ $ IN MILLIONS 3/30/2013 EBITDA ABL Revolver (2016) $145 9.0x 3.0x Cash Flow Revol
Slide 27: …and has helped maintain a secure level of available liquidity
…and has helped maintain a secure level of available liquidity. Liquidity As of $ IN MILLIONS 3/30/2013 ABL Revolver (2016) $661 Cash Flow Revolver (2013) $100 Total Borrowing Availability $761 Total Cash $149 Total Cash and Borrowing Availability $910 26
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Management believes these non-GAAP financial measures provide meaningful supplemental information regarding our operating performance because they exclude amounts that our management and our board of directors do not consider part of core operating results when assessing the
Slide 29: Non-GAAP Reconciliation - Adjusted and Consolidated EBITDA
Non-GAAP Reconciliation - Adjusted and Consolidated EBITDA Year Ended LTM December 29, Q1 2013 2012 Net loss $ (142) $ (51) Interest expense, net 322 312 Income tax provision 57 42 Depreciation and amortization expense 366 356 EBITDA 603 659 Adjustments: Sponsor fees (1) 10 10 Restructuring and tang
Slide 30: US Foods - Keeping Kitchens Cooking
® FOODS KEEPING KITCHENS COOKING.”