Us Foods Holding Corp. · NYSE:USFD
Us Foods — ICR Conference 2021
18 slides from Us Foods's conference presentation, Jan 11, 2021
Slide 1: ICR Conference
ICR Conference January 11, 2021
Slide 2: Cautionary statements regarding forward-looking information
Cautionary statements regarding forward-looking information This presentation contains “forward-looking statements” within the meaning of the federal securities laws concerning, among other things, our liquidity, our possible or assumed results of operations and our business strategies. These forwar
Slide 3: Executive summary
Executive summary 1 Resilient industry that is poised to recover 2 Large, national distributor with scale advantages 3 Differentiated Great Food. Made Easy.™ strategy drives profitable growth 3
Slide 4: Recent increases in COVID cases and temporary restrictions have slowed near-term volume trends
Recent increases in COVID cases and temporary restrictions on restaurants have slowed near-term volume trends Legacy US Foods Case Volume by Customer Type* YOY percent change; Week ended date 0% -10% -20% -30% -40% -50% -60% -70% -80% -90% -100% Mar May May June Aug Aug Sept Oct Nov Dec Dec Dec Dec
Slide 5: Food away from home is poised to recover and continue pre-COVID growth rates
Food away from home is poised to recover and continue pre-COVID growth rates Retail Sales: Restaurants vs Grocery Stores $ billions Restaurants Grocery Stores $250 Long-term trend of restaurants $200 gaining share $150 $100 $50 $0 2010 2014 2018 2022 Markets with less restrictions are Seated Din
Slide 6: National footprint and large diversified customer base drive scale advantages
National footprint and large diversified customer base drive scale advantages States with cash and carry stores US Foods Broadline Location Food Group Broadline Location 70 78 70% 35% 3,000 400,000 300,000 Distribution Cash and of sales via Private Sales SKUs Customers Facilities Carry Stores e-comm
Slide 7: Great Food. Made Easy. strategy is aimed at winning share with large and profitable customer types
Great Food. Made Easy. strategy is aimed at winning share with a number of large and profitable customer types Customer Mix Fiscal 2019 Sales Dollars Product Innovation Other* Private Brand Portfolio 16% Technology Solutions Restaurants Healthcare/ 54% Hospitality 30% Expert Support Omni-Channel Pre
Slide 8: Scoop is an industry leading product innovation platform
Scoop™ is an industry leading product innovation platform that drives higher basket size and better retention Over 500 products in market Greater than 80% stick rate 21% higher basket size and 13% higher retention rates 8
Slide 9: Private brands drive gross margin growth; opportunity to expand penetration
Private brands drive gross margin growth; opportunity to continue to expand penetration with customers BEST Broad portfolio of products BETTER 35% of total sales for Q3’20 2x the Gross Margin GOOD 9
Slide 10: Industry leading e-commerce and technology tools also drive higher basket size and better retention
Industry leading e-commerce and technology tools also drive higher basket size and better retention 70% of current sales revenue comes through e-commerce Two-thirds of operators rated our online ordering experience very good 10% higher basket size and 5% higher retention rates 10
Slide 11: Our value-added services and team based selling help customers succeed
Our value-added services and team based selling are aimed at helping customers succeed while driving better retention Broad portfolio of leading tools and services Expert support from our team-based selling model: Food Fanatic Chefs Restaurant Operations Consultants Product Specialists Red
Slide 12: Our omni-channel offering will allow customers to shop when and where they want
Our omni-channel offering will allow customers to shop when and where they want; cash and carry is central to this strategy Cash and Carry: Revenue synergies with delivered business Higher EBITDA margins and ROIC Significant expansion opportunity Direct: endless aisle of specialty products
Slide 13: Consistent growth with higher margin independent restaurants has resulted in strong Adjusted EBITDA growth
Consistent growth with higher margin independent restaurants has resulted in strong Adjusted EBITDA growth Organic Independent Restaurant Organic Adjusted EBITDA* Case Volume $ millions, % of Sales % change vs. prior year $1,171 4.5% 4.4% 4.0% $875 3.7% 3.1% 3.8% 4.7% FY2015 FY2016 FY2017 FY2018 FY2
Slide 14: Consistent history of using strong cash flow to reduce leverage
Consistent history of using strong and growing cash flow to reduce leverage; expect to continue to delever post-COVID $970M of new Operating Cash Flow Net Debt* and Leverage debt to fund Smart Foodservice $ millions $ millions Leverage ** acquisition $1.8B of new $760 debt to fund Food Group acquisi
Slide 15: We have positioned the business to succeed post-COVID
1 We have positioned the business to succeed post-COVID Our scale and national footprint give us an advantage Profitable share gains enabled by technology and product offerings History of growing EBITDA and expanding margins Investing in inventory to maintain service to customers in a volati
Slide 16: Appendix
Appendix Non-GAAP Reconciliations 16
Slide 17: Non-GAAP Reconciliation – Organic Adjusted EBITDA
Non-GAAP Reconciliation – Organic Adjusted EBITDA $ IN MILLIONS 2019 2015 NET INCOME (GAAP) $406 $168 Interest expense, net 163 285 Income tax provision 132 25 Depreciation and amortization expense 341 399 EBITDA (NON-GAAP) 1,042 877 ADJUSTMENTS: Former Sponsor fees 1 -- 10 Restructuring costs 2 --
Slide 18: Non-GAAP Reconciliation – Net Debt and Leverage
Non-GAAP Reconciliation – Net Debt and Leverage (unaudited) September December December December December January ($ in millions, except ratios) 26, 2020 28, 2019 29, 2018 30, 2017 31, 2016 2, 2016 Total Debt (GAAP) $5,787 $4,736 $3,457 $3,757 $3,782 $4,745 Cash, cash equivalents and restricted cash