Performance Food Group Company · NYSE:PFGC

Performance Food — CAGNY Conference 2020

55 slides from Performance Food's conference presentation, Feb 18, 2020

Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Performance Food Group Company (“us” or the “Company”) solely for information purposes. This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Secti
Slide 4: Delivering Success
Delivering Success Our Mission To be a leader in the foodservice distribution industry by delivering world-class innovative products and value-added services that enable our customers’ success and support enduring supplier relationships. PFG / CAGNY 2020 4 © PFG / CAGNY 2020 ‹#›
Slide 5: Who We Are
Who We Are Market leader with scale Customer-centric approach Disciplined and proven acquirer Differentiated national candy, with ample opportunities snack and beverage distributor Unique Performance Brands Track record of strong and consistent private label business financial performance © PFG / CA
Slide 6: Performance Food Group at a Glance
Performance Food Group at a Glance Key Company Metrics Locations Serviced ▪ Restaurants ▪ Hospitality Suppliers Products Employees(2) ▪ Schools 5,500+ 200,000+ ~25,000 ▪ Hospitals ▪ Theaters ▪ Retailers Distribution Customer ▪ Business and Vehicles Centers Locations industry locations 5300+ 100+ 200
Slide 7: Key Investment Highlights
Key Investment Highlights ▪ Attractive Industry Fundamentals ▪ Leadership Position with Consistent Growth ▪ Customer-Centric Business Model ▪ Motivated Sales Force Expanding Customers and Channels ▪ Track Record of Growing Most Profitable Customers and Brands ▪ Disciplined and Proven Acquirer with F
Slide 8: Attractive Industry Fundamentals
Attractive Industry Fundamentals 2018 Foodservice Distribution Market Food away from home market size (1) U.S. market = $299 billion Online(2) Club Stores 1% 10% $792 $734 $756 $697 Systems $646 16% Broadline $586 $610 $553 42% $513 $504 $520 $473 $499 $445 Specialty 31% 2005 2006 2007 2008 2009 201
Slide 9: Consistent Growth
Consistent Growth Track Record of Net Sales Growth ($ in billions) $26 (1) $20 $18 $16 $17 $15 $13 $14 ▪ Category leader in an attractive industry $12 +12.1% Y/Y 2012 2013 2014 2015 2016 2017 2018 2019 2019PF ▪ Customer-centric business model with local PFG Reinhart decision making Strong Adj. EBITD
Slide 10: PFG Segment Overview
Business Mix PFG Segment Overview PFG Operating Segments Net Sales(1) Vistar 32% ▪ One of the largest broadline distributors by net sales in the U.S. Foodservice ▪ A leading distributor to independent pizzerias in the U.S. 68% ▪ Around $3 billion sales of proprietary Performance Brands ▪ Also includ
Slide 11: Foodservice Segment
Customer Mix (1) Foodservice Segment Independent (2) ▪ Provides a “broadline” range of products serving 34% restaurants and other away-from-home concepts Chain (3) 66% ― Restaurants account for 84% of sales ― Educational institutions, health care facilities FY2019 Sales: $15.1bn and other locations
Slide 12: Vistar Segment
Customer Mix (1) Vistar Segment Hospitality/ Travel All Other 5% Office Supply 4% 4% Vending ▪ A leading distributor to vending and office coffee service Value 31% distributors, theaters, retail impulse, and other channels 7% FY2019 Sales: $4.6bn ▪ Broad ~30,000 SKUs in candy, snacks, beverages, and
Slide 13: Growth Opportunities
Growth Opportunities CONVENIENCE STORES RESTAURANTS SINGLE-SERVE & CULINARY & IMMEDIATE CONSUMPTION © PFG / CAGNY 2020 ‹#› 13
Slide 14: Expanding Customers and Channels
Expanding Customers and Channels Leading industry independent sales growth ▪ Increase in experienced sales personnel provides Organic independent case growth December 2019 natural ramp-up 6% fiscal quarter 4.9% 5% ▪ Focus on growth of independent business and Performance Brands 4% 2.9% 3% 2.5%(1) ▪
Slide 15: Customer-Centric Model
Customer-Centric Model 220% Net Revenue Growth 200% 199% 180% 160% 140% 143% ▪ Locally-based decision making and customer service 120% 123% to remain nimble at the point of transaction 100% ▪ Salespeople understand customers’ business 80% operations and economics FY12 FY13 FY14 FY15 FY16 FY17 FY18 L
Slide 16: Investment in Growth
Investment in Growth Foodservice Area Manager Sales Force 1,914 1,400 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Dec Notes: FY20 as of Q2 FY2020 © PFG / CAGNY 2020 ‹#› 16
Slide 17: Profitable Growth
Profitable Growth Independent foodservice mix Performance brand mix of independent 33.8% 47.3% 25.6% 39.2% Sales Strategy: ▪ Focus on selling to our most profitable customers FY2013 FY2019 FY2013 FY2019 (independent locations) and selling our most profitable brands (Performance Brands) ▪ Higher Perf
Slide 18: Strategic Advantage with Performance Brands
Strategic Advantage with Performance Brands ▪ Proprietary brands are a key competitive advantage in the ▪ FPO PFG’s Performance Brands and recognize the Chefs demand industry quality and specifications they bring to the table ― PFG generates around $3 billion in sales of proprietary ▪ Additional val
Slide 19: Experienced Management Team
Experienced Management Team George Holm Jim Hope Chairman, President & CEO - PFG EVP, Chief Financial Officer - PFG Craig Hoskins Erika Davis EVP - PFG, President & CEO - Foodservice SVP, Chief Human Resources Officer - PFG Pat Hagerty Don Bulmer EVP - PFG, President & CEO - Vistar SVP, Chief Inform
Slide 21: Reinhart Snapshot
Sales Mix By Product Reinhart Snapshot Beverage 6% Produce 7% (2) Non-Food Center of Plate Business Description 9% 37% Dairy 10% ▪ Second largest privately held foodservice distributor in the U.S. with over $6 billion in net Frozen 14% sales and $165 (1) million in Adj. EBITDA Dry (canned) 17% throu
Slide 22: Reinhart Strategic Rationale
Reinhart Strategic Rationale ▪ Expands geographic reach and overall scale ― Enhances PFG’s distribution platform and market density ― Combined pro forma net sales of ~$30 billion for FY2019 (1) ▪ Complementary customer-centric operating models ― Consistent go-to-market approaches and selling culture
Slide 23: Reinhart Enhances Presence in Key Geographies
Reinhart Enhances Presence in Key Geographies Transaction improves network efficiency and increases Geographic Benefits overall scale by adding 26 distribution facilities ▪ Fills out Mid-west ▪ Strengthens Northeast ▪ Enhances South Customer Benefits ▪ Increased density of sales representatives enab
Slide 24: Significant Synergy Potential
Significant Synergy Potential ▪ PFG is a disciplined and proven acquirer with a history of successful integration ▪ Business functions analyzed during the diligence process included: Procurement, Logistics, Operations and others Cost Synergies By Business Area Estimated ($ in millions) Cost Synergie
Slide 25: Key Takeaways
Key Takeaways ▪ PFG is well positioned in an attractive industry ▪ Long-standing track record of delivering consistent and profitable growth ▪ Experienced and dedicated management team ▪ Disciplined M&A strategy ▪ Eby-Brown enables PFG to enter the fast-growing convenience store channel capabilities
Slide 28: Nationwide Coverage
Nationwide Coverage Our OpCos are strategically placed across the country and staffed with teams who constantly evaluate product offerings in their local market. This nationwide coverage gives our clients streamlined delivery and access to the best turning items in their area. © PFG / CAGNY 2020 ‹#›
Slide 29: Strategically Driving Results
Strategically Driving Results Utilizing strengths to grow both core and emerging channels to improve mix/cost structure. Entering into new channels and develop new capabilities through acquisitions. Net Sales (BN) EBITDA (MM) $166.0 $3.7 CAGR 8.7% $3.3 CAGR 13.3% $133.1 $3.0 $2.7 $117.7 $110.1 $2.4
Slide 30: Channels We Service
Channels We Service Vending and Office Coffee Theatre and Specialty Retail Hospitality Micro Markets Services Concessions Campus Travel Cash n Carry Corrections Value © PFG / CAGNY 2020 ‹#› 30
Slide 31: Channel Evolution
Channel Evolution Diversity of our customer base has led to a healthy mix, with no channel comprising more than 50% of our current business. 2000 Mix 2008 Mix 2019 Mix $1BN Sales $1.3BN Sales $3.7BN Sales 2% 2% 5% 5% 5% 3% 1% 3% 4% 10% 46% 15% 11% 73% 96% 19% Vending/OCS Theatre/Concessions Retail V
Slide 32: Customer Growth
Customer Growth ▪ 37% growth in customer base since 2014. ▪ More than 30,000 SKUs carried to service a broad range of customers. ▪ As customers have evolved so have we, by expanding services they want while continuing to evolve our customer base. Source: Company information, © PFG / CAGNY 2020 (1) R
Slide 33: Product Focused
Product Focused The core of what we do best… …and SKU growth continues to evolve to meet consumer demand Impulse Single Serve Retro Good Meal Changing and Bulk to Go Replacement Flavor Candy Products Options Profiles Immediate Consumption © PFG / CAGNY 2020 ‹#› 33
Slide 34: Premiumization of Coffee
Premiumization of Coffee As coffee continues to evolve into premium & super-premium segments, consumers are looking for better offerings and brewing methods for their office coffee. Paid Free Single Specialty Vending Cup Single Cup © PFG / CAGNY 2020 ‹#› 34
Slide 35: Adapting and Growing Channel Disruption
Adapting and Growing Channel Disruption Micro Markets & Micro Kitchens Micro Markets Unattended retail stores located in a secure building or workplace that offer fresh foods, snacks and beverages for purchase via a self checkout kiosk. Micro Kitchens Providing snacks, food, beverages and related pr
Slide 36: Adapting and Growing Channel Disruption
Adapting and Growing Channel Disruption Theatre Dining experiences have changed the customer experience in the Theatre channel. The traditional popcorn and soda concession selections have evolved to feature more snacking options including better for you snacks and a wider assortment variety. Channel
Slide 38: The Future of Automated Facilities
The Future of Automated Facilities Goods to Person Leading method of automated order fulfillment. Product is moved on bots directly to the fulfillment operator, who can then pick what is needed for the existing order. Efficient and accurate order picking Ergonomic picking Scalable Smaller footprint
Slide 40: Welcoming Eby-Brown
Welcoming Eby-Brown Vistar is strategically expanding in the convenience channel where there is significant overlap with suppliers and product EAU CLAIRE categories. YPSILANTI MONTGOMERY PITTSBURGH Vistar and Eby-Brown, combined, CORPORATE services more than 75,000 PLAINFIELD SPRINGFIELD locations m
Slide 41: C-Store Evolution
C-Store Evolution Blurring the lines between Convenience, Grocery, and Restaurant © PFG / CAGNY 2020 ‹#› 41
Slide 42: Bridging the Gap – Food Away From Home
Bridging the Gap – Food Away From Home CAPTIVE DESTINATION CAPTIVE © PFG / CAGNY 2020 ‹#›
Slide 44: Looking Ahead: Our Focus
Looking Ahead: Our Focus 1Disciplined investment in growth 2 Expanding operating margins 3Prudent use of capital © PFG / CAGNY 2020 ‹#› 44
Slide 45: Investing for Growth
Investing for Growth Foodservice Area Manager Net Sales Growth Sales Force 1,914 $ Billions 1,400 + 7.7% CAGR We have delivered consistent sales growth over a long-term economic cycle FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Dec JUNE JUNE JUNE JUNE JUNE JUNE JUNE JUNE JUNE JUNE JUNE FY09 FY10 FY
Slide 46: Expanding Margins
Expanding Margins Productivity Leverage Scale Mix PFG / CAGNY 2020 46 © PFG / CAGNY 2020 46 ‹#›
Slide 47: Strong Free Cash Flow Profile
Strong Free Cash Flow Profile ▪ Robust free cash flow profile developed through ▪ Prudent cash flow management to de-lever investment in accretive opportunities over time ▪ Focused on debt repayment and working capital ▪ Successful execution of strategic M&A management Strong continued growth in Fre
Slide 48: Disciplined Use of Capital
Disciplined Use of Capital Capital Investments to Support Growth CapEx $ Millions 1. Investment in the business = facility expansions ▪ 149,000 sq. ft. added in FY2016 ▪ 426,000 sq. ft. added in FY2017 $140 $140 $139 ▪ 750,000 sq. ft. added in FY2018 $120 $128 2. Strategic M&A $99 ▪ Vistar ▪ Foodser
Slide 49: Disciplined M&A
Disciplined M&A ALIGNED TO MARKET DYNAMICS Insights-driven Opportunistic Customer-centric GROWTH ORIENTED Geographic expansion Channel growth Scale M&A Approach CLEAR STRATEGIC FIT Financially disciplined Operational upside Culturally compatible © PFG / CAGNY 2020 ‹#› 49
Slide 50: FY 2020 Outlook
FY 2020 Outlook Adjusted EBITDA Growth 27% to 33% Adjusted EPS Growth 2% to 7% Adjusted EPS $2.17 to $2.28 1 This presentation includes several metrics, including EBITDA, Adjusted EBITDA and Adjusted Diluted Earnings per Share that are not calculated in accordance with Generally Accepted Accounting
Slide 51: Summary
Summary ▪ Industry-leading growth ▪ Successful independent restaurant case growth ▪ Profitably grow our market share in a fragmented marketplace ▪ Performance Brands private label business is unique with higher margins ▪ Differentiated national candy, snack and beverage distributor ▪ E-Commerce is a
Slide 53: Statement regarding non-GAAP financial measures
Statement regarding non-GAAP financial measures ▪ This presentation includes financial measures that are not calculated in accordance with GAAP, including Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Free Cash Flow Conversion and Adjusted Diluted EPS. Such measures are not recognized ter
Slide 54: Adjusted EBITDA reconciliation – PFG
Non-GAAP financial measures Adjusted EBITDA reconciliation – PFG Pro Forma Historical As Adjusted Three months Six months Fiscal year Fiscal year ended ended ended ended June 30, June 29, June 28, June 27, July 2, July 1, June 30, June 29, December 28, December 29, December 28, December 29, June 29,
Slide 55: Adjusted Diluted EPS reconciliation – PFG
Non-GAAP financial measures Adjusted Diluted EPS reconciliation – PFG Fiscal year ended Three months ended Six months ended ($ in millions, except share and per share data) June 29, 2019 December 29, 2019 December 29, 2019 Diluted earnings per share (GAAP) $ 1.59 $ 0.39 $ 0.73 A Impact of amortizati

Performance Food Group Company — CAGNY Conference 2020 on 6ix

Performance Food — CAGNY Conference 2020

Slide 1: Performance Food Group

Slide 2: Disclaimer

Slide 3: George Holm

Slide 4: Delivering Success

Slide 5: Who We Are

Slide 6: Performance Food Group at a Glance

Slide 7: Key Investment Highlights

Slide 8: Attractive Industry Fundamentals

Slide 9: Consistent Growth

Slide 10: PFG Segment Overview

Slide 11: Foodservice Segment

Slide 12: Vistar Segment

Slide 13: Growth Opportunities

Slide 14: Expanding Customers and Channels

Slide 15: Customer-Centric Model

Slide 16: Investment in Growth

Slide 17: Profitable Growth

Slide 18: Strategic Advantage with Performance Brands

Slide 19: Experienced Management Team

Slide 20: Reinhart Overview

Slide 21: Reinhart Snapshot

Slide 22: Reinhart Strategic Rationale

Slide 23: Reinhart Enhances Presence in Key Geographies

Slide 24: Significant Synergy Potential

Slide 25: Key Takeaways

Slide 26: Pat Hagerty

Slide 27: © PFG / CAGNY 2020

Slide 28: Nationwide Coverage

Slide 29: Strategically Driving Results

Slide 30: Channels We Service

Slide 31: Channel Evolution

Slide 32: Customer Growth

Slide 33: Product Focused

Slide 34: Premiumization of Coffee

Slide 35: Adapting and Growing Channel Disruption

Slide 36: Adapting and Growing Channel Disruption

Slide 37: Emerging Concepts and Categories

Slide 38: The Future of Automated Facilities

Slide 39: From Pallet to Unit Fulfillment

Slide 40: Welcoming Eby-Brown

Slide 41: C-Store Evolution

Slide 42: Bridging the Gap – Food Away From Home

Slide 43: Jim Hope

Slide 44: Looking Ahead: Our Focus

Slide 45: Investing for Growth

Slide 46: Expanding Margins

Slide 47: Strong Free Cash Flow Profile

Slide 48: Disciplined Use of Capital

Slide 49: Disciplined M&A

Slide 50: FY 2020 Outlook

Slide 51: Summary

Slide 52: Appendix

Slide 53: Statement regarding non-GAAP financial measures

Slide 54: Adjusted EBITDA reconciliation – PFG

Slide 55: Adjusted Diluted EPS reconciliation – PFG