Performance Food Group Company · NYSE:PFGC
Performance Food — Investor Day (June 2022)
80 slides from Performance Food's investor day presentation, Jun 29, 2022
Slide 1: PFG Investor Day June 29, 2022
PFG Investor Day June 29, 2022 Exhibit 99.2
Slide 2: Bill Marshall, Vice President, Investor Relations
Bill Marshall Vice President, Investor Relations 2022 PFG / INVESTOR DAY
Slide 3: Disclaimer
Disclaimer This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to our expectations
Slide 4: Disclaimer (continued)
adverse judgements or settlements or unexpected outcomes in legal proceedings; negative media exposure and other events that damage our reputation; decrease in earnings from amortization charges associated with acquisitions; impact of uncollectibility of accounts receivable; difficult economic condi
Slide 5: Agenda
Agenda Welcome & Introductions Culture & Strategic Overview A Value Creating Enterprise Winning In Foodservice Accelerating Growth through Convenience Vistar as a Growth Engine Finance & M&A Update Q&A Session 2022 PFG / INVESTOR DAY
Slide 6: George Holm, Chairman & CEO
George Holm Chairman & CEO 2022 PFG / INVESTOR DAY
Slide 7: Meeting Takeaways
Meeting Takeaways Customer Centric Culture Significant Addressable Market Opportunity Diverse channel model provides resiliency Debt Reduction Consistent organic sales growth Ongoing EBITDA margin expansion 1 2 3 2022 PFG / INVESTOR DAY
Slide 8: Performance Food Group at a Glance
Associates ~30,000 Customer Locations 300,000+ Suppliers 5,500+ Products 250,000+ Company Locations 150+ Vehicles 7,000+ Performance Food Group at a Glance 2022 PFG / INVESTOR DAY LOCATIONS SERVED Restaurants Hospitality Higher Education Healthcare Theaters Specialty Retailers Business and industry
Slide 9: Culture & People Focus
Culture & People Focus Locally-based decision making to remain nimble Understand customers’ business operations Over 12,000 of our associates interact with customers daily Extensive, ongoing product training Underpins Sales Growth 2022 PFG / INVESTOR DAY
Slide 10: Diversified Business Model
Diversified Business Model One of the largest broadline distributors by net sales in the U.S. A leading distributor to independent pizzerias in the U.S. A leading distributor to the family and casual dining channel Vending distributors Office coffee distribution Theatres, stadiums, and arenas Retail
Slide 11: Broad Geographic Reach: Broadline & Specialty
Broad Geographic Reach Broadline & Specialty
Slide 12: Broad Geographic Reach: Foodservice
Broad Geographic Reach Foodservice
Slide 13: Broad Geographic Reach: Vistar
Broad Geographic Reach Vistar
Slide 14: Broad Geographic Reach: Convenience
Broad Geographic Reach Convenience
Slide 15: Broad Geographic Reach
BROAD GEOGRAP | HIC REACH —_
Slide 16: PFG Addressable Market
PFG Addressable Market PFG Serviceable Available Market ~$443 billion Source: PFG Company Estimates PFG Total Addressable Market ~$633 billion Total Addressable Market (TAM) is defined as total U.S. distributor industry dollar sales where PFG companies have the potential to compete for long-term mar
Slide 17: PFG Addressable Market
PFG Addressable Market PFG Serviceable Available Market ~$443 billion $ billions Source: PFG Company Estimates PFG Total Addressable Market ~$633 billion $ billions 2022 PFG / INVESTOR DAY
Slide 18: Consistent, Profitable, Sales Growth
Consistent, Profitable, Sales Growth Consistent market share gains, customer wins and channel expansion Operational excellence and scale enable strong profit growth Substantial runway to sustain strong organic growth For reconciliation of net income to Adjusted EBITDA, please refer to the Appendix.
Slide 19: Craig Hoskins, President & Chief Operating Officer
Craig Hoskins 2022 PFG / INVESTOR DAY President & Chief Operating Officer
Slide 20: Serving Those who Feed America Away from Home
Serving Those who Feed America Away from Home CONVENIENCE STORES SINGLE-SERVE & IMMEDIATE CONSUMPTION RESTAURANTS & CULINARY 2022
Slide 21: Food Away from Home Leader
Food Away from Home Leader Broad Customer Base Diversified in our end-markets Recession resilient Poised to address consumer and operator trends Complementary Businesses Across Food Away from Home Cross selling opportunities are substantial Procurement and brand development strength Operational best
Slide 22: Week in the life of consumers
Week in the life of consumers F Convenience stores rest areas restaurants Food stops T College bookstore College cafeteria Delivery/Instant fulfillment Dollar store Hotel Pantry M Airport Restaurant Fine Dining Airport Gift Shop FOODSERVICE convenience Vistar W Retail candy (BIG BOX) Hispanic Restau
Slide 23: Week in the life of consumers
Week in the life of consumers M T W T F S S Airport Restaurant Fine Dining Hotel Pantry Airport Gift Shop VENDING MACHINE MICRO MARKET Commute Coffee OFFICE COFFEE Retail candy (BIG BOX) Hispanic Restaurant LUNCH Theater food/bev Quick Service restaurant Neighborhood bar & Grill College bookstore Co
Slide 24: Pricing and inflation management levers
Food Cost-plus Brands that deliver value Category management Forward buying Pricing analytics Sales compensation structure Labor Cost to serve analysis Negotiated adjustments Inflation indexed clauses Fuel Surcharge programs Collars Route efficiency Many levers to manage inflation Continuous analyti
Slide 25: Post-COVID Market View
Post-CoVID Market View Macro Environment Markets and channels recovering and poised to deliver upside in FY 23 Bumpiness in geopolitical, inflation, and energy cost environment Operators & Suppliers will face continued cost challenges in the near-term Implications for PFG Restaurant segment leading
Slide 26: Steve Broad, Executive Vice President, Foodservice
Steve Broad 2022 PFG / INVESTOR DAY Executive Vice President, Foodservice
Slide 27: Our Sales Pursuit
Our Sales Pursuit CUSTOMERS OPCO OPERATIONS SALES DRIVERS OPCO MGMT. 2022 PFG / INVESTOR DAY
Slide 28: Our Sales Force is a critical asset and competitive advantage
Our Sales Force is a critical asset and competitive advantage Ongoing training, continued development and tools Leading ordering and data analytics technology suite Commission system that drives performance Impress at the Point of Sale 2022 PFG / INVESTOR DAY
Slide 29: Investment in Growth
Investment in Growth Foodservice Area Manager Sales Force 2022 PFG / INVESTOR DAY Notes: FY22 as of Week 50
Slide 30: Winning in Foodservice
Locally-based decision making Salespeople understand customers’ Product assortment determined locally 2022 PFG / INVESTOR DAY WINNING IN FOODSERVICE High quality proprietary brands Over 12,000 of our associates interact with customers daily Extensive, ongoing product training
Slide 31: Customer First Digital Ordering Platform
Customer First Digital Ordering Platform Customers order more and have a better experience Larger Basket Size Endless Aisle Additional Users Reduced Customer Churn Customers are less likely to leave Customers will move to the online platform Products from other businesses and suppliers Major Compone
Slide 32: Ranking Above the Competition
RANKING ABOVE THE COMPETITION 2022 PFG / INVESTOR DAY Sources: wRatings
Slide 33: People, Products, Innovation
PERFORMANCE FOOD GROUP PEOPLE Products INNOVATION 2022 PFG / INVESTOR DAY
Slide 34: Eric Shoemaker, Executive Vice President, Foodservice
Eric Shoemaker 2022 PFG / INVESTOR DAY Executive Vice President, Foodservice
Slide 35: Performance Brands are a Competitive Advantage
Performance Brands are a Competitive Advantage More than 25,000 SKUs Over $5.2 billion in sales of Performance Brands in FY21 Introduced over 240 SKUs in FY2021 Value creation potential at Reinhart Umbrella Brands – Tiered Strategy Strategic Brands Broadline Roma 2022 PFG / INVESTOR DAY
Slide 36: Rigorous Brand Development Process
RIGOROUS BRAND DEVELOPMENT PROCESS 6-8 Weeks 1 Week Up to 4 Weeks 1 Day 2 Weeks Up to 2 Weeks 2022 PFG / INVESTOR DAY New Brand Development Protocol Item Set Up and Packaging Requirements Packaging Design and Development Packaging Print Proofs and Production Product Production Rollout Assembly & Dis
Slide 37: Supporting our Brands
Supporting our Brands Data Sourcing & Sharing Brand Specific Training Digital & Social Marketing 2022 PFG / INVESTOR DAY
Slide 38: Ranking Above the Competition
RANKING ABOVE THE COMPETITION 2022 PFG / INVESTOR DAY Sources: wRatings
Slide 39: Size of the Prize
SIZE OF THE PRIZE 50.0% 39.2% 2022 PFG / INVESTOR DAY Source: Company Reports
Slide 40: People, Products, Innovation
PERFORMANCE FOOD GROUP PEOPLE Products INNOVATION 2022 PFG / INVESTOR DAY
Slide 41: Scott McPherson, President & CEO, Core-Mark
President & Chief Executive Officer, Core-Mark 2022 PFG / INVESTOR DAY Scott McPherson
Slide 42: Convenience Priorities
Convenience Priorities 2022 PFG / INVESTOR DAY Leverage PFG size, scale & resources Operation Excellence through human capital & technology utilization EBITDA & EBITDA Margin Growth driven by non-nicotine sales growth, price strategy, operation execution Execute on Integration & Synergy Capture $40m
Slide 43: Convenience Store Opportunity Landscape
Convenience Store Opportunity Landscape 2022 PFG / INVESTOR DAY Convenience Opportunity Total Addressable Market (TAM) $195B Serviceable Addressable Market (SAM) $127B Non-Nicotine (SAM) $48B $277.9B Inside Sales Convenience Store Industry Other Markets Serviced Mass Direct to Consumer Drug Other So
Slide 44: FY 2022 PFG Convenience Snapshot (LTM)
FY 2022 PFG CONVENIENCE SNAPSHOT (LTM) Business Fast Facts $23B Sales* Largest Convenience Distributor in North America 50,000 Customer Locations 39k Conveniences Stores 10,000 Associates 50 Distribution Centers 7 Redistributions Centers FY 2022 CONVENIENCE SALES MIX CUSTOMER MIX GROSS PROFIT BREAKD
Slide 45: North American Convenience Network
North American Convenience Network Network Fast Facts 37 - Opco’s 4 - Wal-Mart 2 - 3PL’s 7 - Redistribution 2022 PFG / INVESTOR DAY
Slide 46: Creating Differentiation
Creating Differentiation 2022 PFG / INVESTOR DAY Benefits of Belonging $15MM Early Wins Potential Synergies Identified $40MM Synergies Foodservice Growth Differentiation Cost & Product Selection One Convenience Top Convenience Talent Geographical Footprint Best in Class Marketing Customer Solutions
Slide 47: Expanding Foodservice in Convenience
Access to expanded product mix and improved costs Best in class branded programs – available through all convenience Opco's Solution for convenience retailers with complex foodservice offer via PFS Access to culinary expertise not available from competitive convenience wholesalers Expanded Foodservi
Slide 48: Delivering on Differentiation Commitment
Exclusive Fresh Solutions Consumer Facing Technology Category Management Solutions Product Innovation Core Convenience Foodservice Delivering on Differentiation Commitment 2022 PFG / INVESTOR DAY
Slide 49: A Company of Growth
A Company of Growth Operational Excellence Drive EBITDA and Margins Leverage PFG to Grow Foodservice Execute on Integration and Capture Synergy Convenience Rationale
Slide 50: Patrick Hatcher, President & COO, Vistar
2022 PFG / INVESTOR DAY Patrick Hatcher President & Chief Operating Officer, Vistar
Slide 51: Vistar Channels of Business
Vending & Micro Markets Office Coffee Services Military Theatre & Concessions Specialty Retail Hospitality Travel Campus Office Supply Corrections Value E-Comm E-Comm Gaming Channels OF BUSINESS
Slide 52: Channel evolution: 2000 mix
Source: Company information, Refers to Net Sales in Vistar operations. Vending/OCS Theater/Concessions 2000 Mix $1B Sales Channel evolution 2022 PFG / INVESTOR DAY
Slide 53: Channel evolution: 2008 mix
Vending/OCS Theater/Concessions Corrections Travel/Hospitality Retail Other 2008 Mix $1.4B Sales 2022 PFG / INVESTOR DAY Channel evolution Source: Company information, Refers to Net Sales in Vistar operations.
Slide 54: Channel evolution: FYQ3 TTM22 mix
Vending/OCS Theater/Concessions Corrections Travel/Hospitality Retail Other Campus Value Office Supply FYQ3 TTM22 $3.4B Sales Channel evolution Source: Company information, Refers to Net Sales in Vistar operations. PFG / INVESTOR DAY 2022
Slide 55: Channel evolution
2022 PFG / INVESTOR DAY Diversity of our customer base has led to a healthy mix, with no channel comprising more than 50% of our current business. Source: Company information, Refers to Net Sales in Vistar operations. Vending/OCS Theater/Concessions Corrections Travel/Hospitality Retail Other Campus
Slide 56: Update on Channel trends
Update on Channel trends
Slide 57: Evolution of Vending to Micro Markets
EVOLUTION OF VENDING TO MICRO MARKETS 2020 2022 63,000+ 2009 2012 ~500 8,900+ 2014 2,600+ 43,000+ Locations 0 70,000
Slide 58: Unattended Retail Expands
Unattended Retail Expands to Smart Coolers to Micro Cafés to Just Walk Out Stores Unattended Retail Expands to... Micro Cafes JUST WALK OUT™️ Stores Smart Coolers 2022 PFG / INVESTOR DAY
Slide 59: Fulfillment Services
Fulfillment Services 3 Facilities 150 Customers across 8 channels 1.3M Orders Annually 3M Parcels shipped annually Ability to Meet Customer’s Future Growth Needs Competitive Advantage New Opportunities with Manufacturers
Slide 60: Growth Terrains
growth TERRAINS
Slide 61: Growth Channels: Military, Gaming
Growth Channels Military Gaming 2022 PFG / INVESTOR DAY
Slide 62: E-Commerce & Q-Commerce
E-Commerce & Q-Commerce of Consumers Shop Online Monthly 75% Total Q-Commerce global market in 2021 $25B
Slide 63: Understanding Our Customers & Meeting Them Where They Are
UNDERSTANDING OUR CUSTOMERS & MEETING THEM WHERE THEY ARE
Slide 64: Multiple Delivery Methods
e | VISTAR Multiple Delivery Methods
Slide 65: Expanded Categories
Expanded Categories
Slide 66: Innovate, Grow, Think Different
INNOVATE GROW THINK DIFFERENT 2022 PFG / INVESTOR DAY
Slide 67: Liz Mountjoy, Vice President, Strategy & M&A
Liz Mountjoy Vice President, Strategy & M&A
Slide 68: Disciplined M&A Strategy
Disciplined M&A Strategy Financially disciplined Operational upside Culturally compatible Geographic expansion Channel growth Scale Insights-driven Opportunistic Customer-centric ALIGNED TO MARKET DYNAMICS GROWTH ORIENTED COMPELLING STRATEGIC FIT M&A Approach 2022 PFG / INVESTOR DAY
Slide 69: Track Record of Successful M&A
Recent M&A on or ahead of expectations Integration Synergy Capture ahead of schedule More Opportunity Ahead Track Record of Successful M&A
Slide 70: Targeted M&A to Drive Shareholder Value
Targeted M&A to Drive Shareholder Value Focus Expand geographic footprint and capacity Strengthen existing channels Impact Better service to customers Efficiencies of scale and service Negotiating leverage with suppliers Revenue and cost synergies Maximize associate opportunities and retention 2022
Slide 71: Jim Hope, Executive Vice President & CFO
Jim Hope Executive Vice President & Chief Financial Officer
Slide 72: Our Focus
Driving sales and market share position across all channels in which we currently participate Margin expansion through improving product and customer mix (private brands, independent customers), and operational efficiencies Advancements in technology to meet customer and supplier needs and support o
Slide 73: Organic Independent Case Growth
Organic* Independent Case Growth 2022 PFG / INVESTOR DAY *Organic Case Growth Excludes contribution from acquisitions An independent restaurant customer is defined as an operator with 4 or fewer locations.
Slide 74: Disciplined Use of Capital
Disciplined Use of Capital Capital Investments to Support Growth Facility expansions Strategic M&A Deleverage Annual Capex $ Millions 2022 PFG / INVESTOR DAY
Slide 75: Three Year Targets
Three Year Targets 3-YEAR SALES Annual Net Revenue of $62 billion to $64 billion in fiscal 2025 *Assumes cigarette dollar sales roughly flat through 2025 3-YEAR ADJ EBITDA Annual Adj EBITDA of $1.5 to $1.7 billion in fiscal 2025 2022 PFG / INVESTOR DAY
Slide 76: Meeting Takeaways
Meeting Takeaways Customer Centric Culture Significant Addressable Market Opportunity Diverse channel model provides resiliency Debt Reduction Consistent organic sales growth Ongoing EBITDA margin expansion 1 2 3 2022 PFG / INVESTOR DAY
Slide 77: Performance Food Group
Performance Food Group
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Slide 79: Statement regarding non-GAAP financial measures
Statement regarding non-GAAP financial measures 2022 PFG / INVESTOR DAY This presentation includes certain non-GAAP financial measures, including Adjusted EBITDA. These metrics have important limitations and should not be considered in isolation or as a substitute for measures of our financial perfo
Slide 80: Adjusted EBITDA reconciliation
2022 PFG / INVESTOR DAY Non-GAAP financial measures Adjusted EBITDA reconciliation Includes adjustments for non-cash charges arising from stock-based compensation, changes in the last-in, first-out (“LIFO”) reserves and gain/loss on disposal of assets. Stock-based compensation cost was $25.4 million