Slide 1: Sysco 2Q12 Earnings Results
Sysco 2Q12 Earnings Results February 6, 2012 Exhibit 99.1 Sysco 2Q12 Earnings Results
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements Certain statements made herein that look forward in time or express management’s expectations or beliefs with respect to the occurrence of future events are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They include statements reg
Slide 3: Bill DeLaney, President & CEO
Bill DeLaney President & CEO 3 Bill DeLaney President & CEO
Slide 4: 2Q12 Highlights
2Q12 Highlights 4 Adjusted Reported $ Millions 2Q12 YOY % Change 2Q12 YOY % Change Sales $10,244 9.2% $10,244 9.2% Gross Profit $1,846 4.8% $1,846 4.8% Operating Expenses $1,383 5.5% $1,419 7.1% Operating Income $462 2.5% $427 (2.3%) Net Earnings $272 3.3% $250 (3.1%) EPS $0.46 2.2% $0.43 (2.3%) 1 1
Slide 5: Business Transformation Timeline
Arkansas Pilot (April 2011) Second Pilot Launched in Oklahoma (January 2012) Arkansas Enhancements (November 2011) Delivered product Areas of improvement : Performance Order entry Reporting Business Transformation Timeline 5 Future Waves Additional enhancements Business Transformation Timeline
Slide 6: Key Takeaways
Key Takeaways 6 Improved conditions during the holiday season, combined with aggressive action to support our customers resulted in stronger case growth during the second quarter We are taking action across the business to more effectively leverage our case growth and improve profitability Sysco’s u
Slide 7: Chris Kreidler, EVP & CFO
Chris Kreidler EVP & CFO 7 Chris Kreidler EVP & CFO
Slide 8: Sales Growth
Sales Growth 8 Total Sysco Components of Sales Growth 1 Real growth defined as the nominal change in sales growth less inflation, acquisitions, and foreign exchange Sales Growth
Slide 9: Gross Profit Trend
Gross Profit Trend 9 +4.8% YOY ($ in millions) Gross profit per case and per stop also increased +5.1% YOY Gross Profit Trend
Slide 10: Operating Expenses
Operating Expenses 10 (YOY change; $ in millions) 1 See Non-GAAP reconciliations at the end of this presentation. 2Q12 Reported operating expense +7.1% Adjusted 1 operating expense +5.5% Excluding gross business transformation expense and COLI Operating Expenses
Slide 11: Business Transformation Project Costs
(in millions) 2Q12 1H12 2Q11 1H11 Operating Expense $36 $73 $24 $46 Capital $33 $79 $51 $104 11 Business Transformation Project Costs Business Transformation Project Costs
Slide 12: Adjusted Operating Income
Adjusted Operating Income 12 1 Excludes impact of COLI and gross business transformation expenses. See Non-GAAP reconciliations at the end of this presentation. +4.4% YOY 1 ($ in millions) +2.5% YOY 1 $451 $462 2Q11 2Q12 2nd Quarter $965 $1,008 1H11 1H12 First Half Adjusted Operating Income
Slide 13: Adjusted EPS
Adjusted EPS 13 1 Excludes impact of COLI and gross business transformation expenses. See Non-GAAP reconciliations at the end of this presentation. +2.2% YOY +7.4% YOY Adjusted EPS
Slide 14: First Half Fiscal 2012 Highlights
First Half Fiscal 2012 Highlights 14 Adjusted Results 1 Reported $ Millions 1H12 YOY % Change 1H12 YOY % Change Sales $20,831 8.9% $20,831 8.9% Gross Profit $3,793 5.1% $3,793 5.1% Operating Expenses $2,785 5.4% $2,857 7.2% Operating Income $1,008 4.4% $936 (0.7%) EPS $1.02 7.4% $0.94 (1.1%) 1 Exclu
Slide 15: Capital Expenditures
Capital Expenditures 15 ($ millions) New facilities under construction: Long Island, Boston, Central Texas Expansions underway in several locations 1H12 Capital Expenditures
Slide 16: FY12 Guidance
FY12 Guidance 16 Guidance FY12 Prior Guidance Capital spending $700 – 750 million No change Business Transformation CapEx (included in above) $125 – 145 million $100 – 120 million Gross Business Transformation expense $230 – 250 million $250 – 275 million Pension expense $25 million lower than FY11
Slide 17: Good things. Sysco
Good things Sysco
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations 18
Slide 19: 2Q12 & 1H12 Financial Results
2Q12 & 1H12 Financial Results 19 Sysco’s results of operations are impacted by costs from our multi-year Business Transformation Project. Additionally, near the end of fiscal 2011, we reallocated all of our investments in our COLI policies into low-risk, fixed-income securities and therefore we do n
Slide 20: 2Q12 Financial Results
2Q12 Financial Results 20 13-Week Period Ended December 31, 2011 GAAP Business Transformation COLI Non-GAAP Operating expenses $ 1,418,652 $ (36,356) $ 985 $ 1,383,281 Operating income 426,998 36,356 (985) 462,369 Net earnings (1) 250,113 22,610 (985) 271,738 Diluted earnings per share $ 0.43 $ 0.03
Slide 21: 1H12 Financial Results
1H12 Financial Results 21 26-Week Period Ended December 31, 2011 GAAP Business Transformation COLI Non-GAAP Operating expenses $ 2,856,912 $ (73,361) $ 1,779 $ 2,785,330 Operating income 936,338 73,361 (1,779) 1,007,920 Net earnings (2) 552,766 45,990 (1,779) 596,977 Diluted earnings per share $ 0.9