Sysco Corporation · NYSE:SYY
Sysco — Q1 FY2015 Earnings Presentation
19 slides from Sysco's earnings presentation, Nov 3, 2014
Slide 1: 1Q15 Earnings Results
Filed by Sysco Corporation Commission File No. 001-06544 Pursuant to Rule 425 under the Securities Act of 1933 Subject Company: USF Holding Corp. Filed by Commission Pursuant under Subject Sysco November the 1Q15 Company: Sysco to Securities 3,Rule Earnings File 2014 Corporation 425 No. Sysco Act 00
Slide 2: Forward-Looking Statements
Forward-Looking Statements forward-looking subject acquisitions. conditions success lack adverse in customers benefits business implementation cost experience transformation particularly anticipated our Periods may and of or negatively stock lose operations consuming relation impacting SEC. Addition
Slide 3: 1Q15 Results Highlights
13 Millions, Reported $Certain 1Q15 share Sales Gross Operating Expenses Net Income Diluted Earnings data $12,445 Highlights 1Q15 Profit Items1 EPS See Results $1,723 $466 Change except $2,189 Non-GAAP $0.47 $279 6.2% (2.6%) Adjusted 8.6% YOY Change (2.1%) (2.4%) 6.0% $12,445 $509 $1,680 % reconcili
Slide 4: U.S. Restaurant Traffic and Inflation
Inflation 3.2% 2.5% 2.1% Restaurant -2.0% -1.0% 0.9% 1.3% U.S. % 8.0% 13 0.0% 1.0% 2.0% 3.0% 4.3% 4.0% 5.0% 6.0% 7.0% Sep Retail Foodservice 1) 42) Change Source: 13 Oct Retail 2.9% 2.7% 2.4% 2.2% 1.7% 7.1% 13 &Nov Food Contributes 13U.S. NPD vs. Spend/Traffic Spend 2.1% Data(2) 14 &Dec Year Svcs. D
Slide 5: Business Transformation Progress
Business Successful Technology and Remainder Year-over-year Continued Lower more 5We continue sequencing effectively Product Cost Transformation application execution of Structure Continued tocategories benefits Costs expectSAP market Implementing of to focus begin to exceed best Progress software b
Slide 6: Key Business Investments
Key Investments Branding Markets Urban sales tailored increase share Customers Manhattan Ongoing Demographic Program Sales Management Revenue training management 6Investments initiative in andto initiative market targeted listening and margin 1st aimed Markets in atinitiative atOur authentically dri
Slide 7: Key Takeaways
Keyhave Business 7We are Takeaways pleased encouraged many environment opportunities withby our remains our solid progress tooperating challenging continue in implementing performance to — enhance marked our our inby 1Q15 customers’ portfolio high inflation, ofexperience, business stagnant transform
Slide 8: 1Q15 Results Highlights
18 Millions, Reported $Certain 1Q15 share Sales Gross Operating Expenses Net Income Diluted Earnings data $12,445 Highlights 1Q15 Profit Items1 EPS See Results $1,723 $466 Change except $2,189 Non-GAAP $0.47 $279 6.2% (2.6%) Adjusted 8.6% YOY Change (2.1%) (2.4%) 6.0% $12,445 $509 $1,680 % reconcili
Slide 9: Sales Growth and Inflation
(1) Sales 5.7% 6.2% 3.2% Inflation Case 4.1% 2.2% 3.0% 1Q14 Organic 9 Growth 5.9% 4.3% 2.3% Growth 2Q14 Acquired Includes Contributes Other 3Q14 (1) Broadline 4Q14 Significantly 1Q15and SYGMA to Sales Growth
Slide 10: Improving Gross Profit Performance
(4) Improving Gross Q114 0.7% 1.8% 2.7% 4.0% 6.0% YOY (9) (19) (28) (32) Change Q214 Profit Gross (31) Q314 ($inGrowth) Gross Profit Q414Margin Performance Q115 (bps) Trend (60) (68) (60) 1Q13 2Q13 Category 10 Management 3Q13 4Q13benefits 1Q14 2Q14 gross3Q14 profit4Q14 performance 1Q15
Slide 11: 1Q15 Operating Expenses
1Q15 (YOY Reported 1Q14 $1,587 $1,723 67 41 128 2Items 11See Non-GAAP North Operating Payroll change; America operating Certain $ Expenses in Broadline reconciliations millions) expense Other 1Q15 +8.6%atAdjusted1 the end of operating this presentation expense +6.0% Cost per case2 increased 12 cents
Slide 12: Prudently Managing Capital Expenditures
Prudently ($ Gross $119 $136 Technology/Other 140 120 130 70 80 0.6% 90 100 0.9% 110 50 60 1Q14 Net 12 millions) 0.3% 0.0% Capex CAPEX 1.5% 1.2% 1Q15 2Q14 Capex Managing 3Q14 Net CAPEX 4Q14 Fleet Capital Facilities 1Q15 as aExpenditures % of Sales
Slide 13: 1Q15 Cash Flow
$1Q15 Cash Capital Free Dividends 1) 2) 13Millions Capital Free Cash Flow free cash Expenditures, expenditures cash Flow Flow2 Paid 1Q15 from flow flow $170 Operations 1Q14 ($55) may lower $164 net1 not %$44 areChg foot (118) 3.6% due net NM $63of due to$169 (125) proceeds pension to rounding (63%)
Slide 14: US Foods Merger Update
US Foods FTC 14 discussions Mergercontinue Update to be productive Completed $5 billion debt offering on Oct. 2nd Do not expect merger to close before 1Q of CY15
Slide 15: Good things come from Sysco
Good things come from Sysco
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations 16
Slide 17: Non-GAAP Reconciliations
Non-GAAP Sysco (In Sysco’s financing Certain and comparison The ameasures 17 result, Thousands, are company Corporation often Items results inin costs the on Reconciliations assessing unanticipated, provides uses tables aof Except (collectively year-over-year operations these and that the for an its
Slide 18: Non-GAAP Reconciliations
Non-GAAP 13-Week Period Sep. Operating Interest Net Impact Diluted (1) US are (2) calculated NM 18 Tax Individual calculated Foods earnings represents 27,Ended of impact Expense earnings EPS shares 2014 13-Week severance facility US financing expenses Income income using Reconciliations adjusted (GA
Slide 19: Non-GAAP Reconciliations: Free Cash Flow
Sysco Non-GAAP Subsidiaries (In plant about potentially not make periods In 13-Week Period Sep. Net Additions Proceeds Free 19 the Thousands) mean cash 27, cash Cash and mandatory the table Corporation Ended presented. 2014 provided 13-Week from equipment. amount to flow to Flow be that imply Reconc