Sysco Corporation · NYSE:SYY
Sysco — CAGNY 2021
21 slides from Sysco's conference presentation, Feb 16, 2021
Slide 1: CAGNY 2021
——— Ll OE S/scO CAGNY 2021 At the heart of food and service February 16
Slide 2: Forward Looking Statements
Forward Looking Statements Statements made in this presentation or in our earnings call for the second quarter of fiscal 2021 that look forward in time or that express management’s beliefs, expectations or hopes are forward-looking statements within the meaning of the Private Securities Litigation R
Slide 3: Neil Russell
NEIL RUSSELL S V P , C o r p o r a t e A f f a i r s a n d C h i e f C o m m u n i c a t i on s O f f i c e r
Slide 4: Sysco's Adversity Video
Sysco’s Adversity Video Sysco At the heart of food and service
Slide 5: Kevin Hourican
KEVIN HOURICAN President & CEO
Slide 6: Sysco is Gaining Market Share and Leading the Foodservice Distribution Industry Throughout the Disruption
Sysco is Gaining Market Share and Leading the Foodservice Distribution Industry Throughout the Disruption Sysco is not just managing the COVID crisis – we are transforming the business by creating new capabilities for our future Delivered a profitable second fiscal quarter despite a 23% decline in t
Slide 7: Large Opportunity to Continue to Grow in a Highly Fragmented Industry by Leveraging Sysco's Scale and Unique Capabilities
Large Opportunity to Continue to Grow in a Highly Fragmented Industry by Leveraging Sysco’s Scale and Unique Capabilities Sysco has 16% market share in the U.S. Our share of wallet is 30% with independent restaurants We serve 50% of the independent restaurants that exist in the U.S. today 7
Slide 8: We Are Making Investments in Preparation for the Pending Business Recovery
We Are Making Investments in Preparation for the Pending Business Recovery Restaurants Rising Campaign, no minimum delivery Customers requirements, continuation of delivery frequency Drivers, warehouse associates, sales associates and People leadership team Broad product portfolio with the right pro
Slide 9: Sysco's Restaurants Rising Video
Sysco’s Restaurants Rising Video
Slide 10: Restaurants Rising Helps Restaurants Succeed and Strengthen Their Business
Restaurants Rising Helps Restaurants Succeed and Strengthen Their Business No Delivery Minimums Outdoor Dining Solutions Fast Onboarding & Credit Card Payments Restaurant Marketing Tools Menu Optimization and Web-Enablement Increasing Delivery Frequency
Slide 11: Aaron Alt
AARON ALT | EVP & CFO
Slide 12: Sysco has the Capabilities to Accelerate Long-Term Growth
Sysco has the Capabilities to Accelerate Long- Term Growth Financially strong balance 12-Month Adj. EBITDA Margin sheet… $8 billion of cash and 7.0% available liquidity 6.0% 5.0% Adj. EBITDA margin is 2x 4.0% industry average 3.0% Sysco has the size, scale, and 2.0% network to accelerate 1.0% profit
Slide 13: We Follow a Disciplined Approach to Capital Allocation
We Follow a Disciplined Approach to Capital Allocation Invest in the business and M&A Maintain dividend payment Paydown debt Opportunistic share repurchase 13
Slide 14: Sysco Places a Priority on Returning Value to Shareholders
Sysco Places a Priority on Returning Value to Shareholders 14% 5-Year TSR 1 $11.1B of total value returned over 5 years 15% ROIC 2 We remain the only Investment Grade Foodservice Service Distributor, and we continue to pay our quarterly dividend ($860M) 1 Returns represent average annualized return
Slide 15: As Restrictions Ease, Consumers Are Ready and Willing to Eat Away from Home
As Restrictions Ease, Consumers Are Ready and Willing to Eat Away from Home U.S. vs. International Weekly Sales1 0.0% U.S. International October November December January February -50.0% 2020 2020 2020 2021 2021 1For illustrative purposes only 15
Slide 16: The Operating Environment Will Have an Impact On Our Business Results
The Operating Environment Will Have an Impact On Our Business Results We are resolutely focused on managing the businesses, aggressively preparing operationally for a pending business recovery through staffing, inventory and technology We continue to make short-term, purposeful investments which wil
Slide 17: Sysco is Well Positioned for the Pending Business Recovery
Sysco is Well Positioned for the Pending Business Recovery We believe our strategy and our transformational initiatives will drive future value for our customers, associates, and shareholders 17
Slide 18: Sysco Investor Day May 20, 2021
Sysco Investor Day May 20, 2021
Slide 19: S/sco
S/sco At the heart of food and service
Slide 20: Impact of Certain Items
Impact of Certain Items Sysco’s results of operations for fiscal 2020 were impacted by restructuring and transformational project costs consisting of: (1) expenses associated with our various transformation initiatives; (2) severance and facility closure charges; and (3) restructuring charges. All a
Slide 21: Non-GAAP Reconciliations (ROIC)
Non-GAAP Reconciliations (ROIC) Adjusted Return on Invested Capital (ROIC) (Dollars in Thousands) We calculate ROIC as operating income divided by (i) stockholder’s equity, computed as the average of adjusted stockholders’ equity at the beginning of the year and at the end of each fiscal quarter dur