Slide 1: Q1 Fiscal 2024 Earnings Results
TOGETHER WE ARE Q1 Fiscal 2024 Earnings Results February 6, 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 Results in Q1 Fiscal 2024 2 Business Momentum from Growth Strategies 3 Fiscal 2024 Outlook TOGETHER WE ARE 3
Slide 4: Summary of Q1 Fiscal 2024 Results
Summary of Q1 Fiscal 2024 Results - Revenue +13%; Organic Revenue +13% - Record revenue performance due to stronger sales volume, pricing, and net new business - Operating Income +10%1; Adjusted Operating Income (AOI) +28%2 - Growth from scale efficiencies from higher revenue, cost management, and s
Slide 5: Driving Revenue Growth Across All Segments
Driving Revenue Growth Across All Segments +13% Organic Growth Record performance led by stronger sales volume, pricing, and net new business +10% +21% Organic Growth Organic Growth *Charts displayed in $ millions Totals may not foot due to rounding TOGETHER WE ARE 5
Slide 6: Adjusted Operating Income Growth and Margin Expansion
Adjusted Operating Income Growth and Margin Expansion AOI Margin Aramark +64bps 5.2% $250 4.6% $200 $150 Driven by leveraging higher sales volume, disciplined cost +28% $230.6 mgmt., supply chain efficiencies, and inflation moderating $100 $179.2 $50 $- Q1 '23 Q1 '24 FSS United States AOI Margin FSS
Slide 7: Driving Supply Chain Economics
Driving Supply Chain Economics Focus: Provide quality products and services to clients - Effectively growing from sales volume and leveraging spend - Product costs improving - Current landscape presents significant opportunities - Working closely with manufacturing and distribution partners to optim
Slide 8: Be Well. Do Well. Progress Report
Be Well. Do Well. Progress Report Published Be Well. Do Well. Progress Report on January 30, 2024 Features program and performance updates related to people, planet, and governance Transparent disclosure aligned with ESG reporting framework Refreshed Aramark-centric look and feel for Be Well. Do Wel
Slide 9: Ongoing Balance Sheet Optimization
Ongoing Balance Sheet Optimization Balance Sheet Strengthening Redeemed $1.5 billion Senior Notes due 2025 in the quarter Net Debt position reduced by more than $2.2 billion since Q1 FY23 More than $1.0 billion in cash availability at quarter-end Opportunistically look to enhance capital structure g
Slide 10: FY24 Outlook
FY24 Outlook Aramark is highly encouraged by the favorable trends in the business. As a result, the Company updated its fiscal 2024 outlook for both AOI and Adjusted EPS growth and reaffirmed expectations for Organic Revenue growth and Leverage Ratio. Aramark currently anticipates the following full
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Slide 12: Appendix
APPENDIX TOGETHER WE ARE 12
Slide 13: Modeling Assumptions
Modeling Assumptions FY24 Modeling Assumptions • Net Interest Expense: ~$335M • 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 14: 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" three months ended December 30, 2022 r
Slide 15: CapEx and Client Payments
CapEx and Client Payments CapEx as a % of Revenue is consistent with the Company’s historical levels TOGETHER WE ARE 15
Slide 16: Free Cash Flow Generation
Free Cash Flow Generation (in Millions) FY24 Q1 Q2 Q3 Q4 FY ➢ As expected, the first quarter experienced a cash outflow ($768) associated with Aramark’s normal seasonal business $807 cadence, specifically in Collegiate Hospitality and Sports & Entertainment $146 ➢ Higher working capital due to stron
Slide 17: 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 18: 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 19: Non-GAAP Schedules
Non-GAAP Schedules TOGETHER WE ARE 19
Slide 20: Adjusted Operating Income Margin
Adjusted Operating Income Margin TOGETHER WE ARE 20
Slide 21: Adjusted Net Income and Adjusted Earnings Per Share
Adjusted Net Income and Adjusted Earnings Per Share TOGETHER WE ARE 21
Slide 22: Net Debt to Covenant Adjusted EBITDA
Net Debt to Covenant Adjusted EBITDA TOGETHER WE ARE 22
Slide 23: Free Cash Flow
Free Cash Flow TOGETHER WE ARE 23
Slide 24: Post-Spin Reference Point
Post-Spin Reference Point TOGETHER WE ARE 24
Slide 25: Aramark FY23 AOI Post-Spin Reference Point – Full Year
Aramark FY23 AOI Post-Spin Reference Point – Full Year TOGETHER WE ARE 25
Slide 26: Aramark FY23 Adjusted EPS Post-Spin Reference Point – Full Year
Aramark FY23 Adjusted EPS Post-Spin Reference Point – Full Year TOGETHER WE ARE 26
Slide 27: Aramark FY23 Net Debt to Covenant Adjusted EBITDA
Aramark FY23 Net Debt to Covenant Adjusted EBITDA TOGETHER WE ARE 27
Slide 28: aramark
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