Slide 1: Sysco 1Q FY21 Earnings Results
Sysco 1Q FY21 Earnings Results November 3
Slide 2: Forward Looking Statements
Forward Looking Statements Statements made in this presentation or in our earnings call for the first 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 Re
Slide 3: Kevin Hourican, President & CEO
KEVIN HOURICAN President & CEO
Slide 4: Sysco is Gaining Share and Leading the Foodservice Distribution Industry Throughout the Crisis
Sysco is Gaining Share and Leading the Foodservice Distribution Industry Throughout the Crisis Sysco is not just managing the COVID crisis – we are substantially transforming our company for long-term growth Delivered profitable adjusted operating income and strong positive free cash flow during the
Slide 5: We are Doing More To Ensure the Success of the Restaurants and Customers We Serve
We are Doing More To Ensure the Success of the Restaurants and Customers We Serve Holiday Toolkit with Unique Innovative Outdoor Offerings for Restaurateurs Dining Solutions 5
Slide 6: Our Business Transformation is on Track as We Continue Our Work to Improve How We Serve Our Customers
Our Business Transformation is on Track as We Continue Our Work to Improve How We Serve Our Customers Accelerate Digital On Track Platforms Sales Transformation On Track Regionalization Completed Structural Cost Out On Track 6
Slide 7: Sysco is Well Positioned for Future Success and Will Lead the Industry with Innovation
Sysco is Well Positioned for Future Success and Will Lead the Industry with Innovation that Fuels Growth We are doing more to support our customers as evidenced by a lower rate of closures vs. industry Sales trends will be impacted by changing restrictions Sysco is leveraging the crisis to transform
Slide 8: Joel Grade, EVP & CFO
a. JOEL GRADE EVP & CFO
Slide 9: 1Q21 Total Sysco Results
1Q21 Total Sysco Results Total Sysco 1Q21 Sales $11.8B 23.0% Gross Profit $2.2B 24.6% 1 Adj. Operating Income $365M 50.8% 1 Adj. EPS $0.34 65.3% 1 See Non-GAAP reconciliations at the end of the presentation. 9
Slide 10: 1Q21 U.S. Foodservice Results
1Q21 U.S. Foodservice Results U.S. Foodservice 1Q21 Sales $7.9B 25.7% Gross Profit $1.6B 25.4% 1 Adj. Operating Expenses $1.1B 18.6% 1 Adj. Operating Income $503M 36.9% 1 See Non-GAAP reconciliations at the end of the presentation. 10
Slide 11: 1Q21 International Results
1Q21 International Results International 1Q21 Sales $2.2B 25.7% Gross Profit $450M 25.6% Adj. Operating Expenses1 $432M 14.7% Adj. Operating Income1 $19M 81.0% 1 See Non-GAAP reconciliations at the end of the presentation. 11
Slide 12: 1Q21 SYGMA Results
1Q21 SYGMA Results SYGMA 1Q21 Sales $1.5B 5.3% Gross Profit $132M 4.5% 1 Adj. Operating Expenses $120M 3.5% 1 Adj. Operating Income $12M 15.3% 1 See Non-GAAP reconciliations at the end of the presentation. 12
Slide 13: Sysco Produced Strong Positive Free Cash Flow for the First Quarter
Sysco Produced Strong Positive Free Cash Flow for the First Quarter First 13 Weeks First 13 Weeks of FY20 of FY21 Cash from Ops $172M $931M $759M Free Cash Flow1 $1M $862M $862M 1 See Non-GAAP reconciliations at the end of the presentation. 13
Slide 14: Free Cash Flow Expectations for Fiscal 2021
Free Cash Flow Expectations for Fiscal 2021 FY21 Expected Cumulative Free Cash Flow Normalized seasonality Building inventory Ongoing investments in the business 1Q21 2Q21 3Q21 4Q21 Free cash flow for the full fiscal year is expected to end flat to slightly positive compared to the prior year Expect
Slide 15: Sysco Remains Financially Strong
Sysco Remains Financially Strong Strong free cash flow of $862 million1 and $365 million of adjusted operating income1 despite a 23% sales decline during the first quarter More than $8 billion of cash and available liquidity Sysco is well positioned for future growth 1 See Non-GAAP reconciliations a
Slide 16: At the heart of food and service
S/sco At the heart of food and service
Slide 17: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS
Slide 18: Impact of Certain Items
Impact of Certain Items Sysco’s results of operations for fiscal 2021 and fiscal 2020 were impacted by restructuring and transformational project costs consisting of: (1) restructuring charges; (2) expenses associated with our various transformation initiatives; and (3) facility closure and severanc
Slide 19: Impact of Certain Items, 1Q21
Impact of Certain Items, 1Q21 Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items (Dollars in Thousands, Except for Share and Per Share Data) 13-Week 13-Week Period Ended Period Ended Change Sep. 26, 2020 Sep. 28, 2019 in Dollars % Change O
Slide 20: Impact of Certain Items, 1Q21 (Segment)
Impact of Certain Items, 1Q21 (Segment) Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments (Dollars in Thousands) 13-Week 13-Week Period Ended Period Ended Change Sep. 26, 2020 Sep. 28, 2019 in Dollar
Slide 21: Impact of Certain Items, 1Q21 (Segment Continued)
Impact of Certain Items, 1Q21 (Segment Continued) OTHER Sales $ 168,005 $ 284,990 $ (116,985) -41.0% Gross Profit 40,430 71,744 (31,314) -43.6% Gross Margin 24.06% 25.17% -111 bps Operating expenses (GAAP) $ 40,435 $ 61,607 $ (21,172) -34.4% Impact of bad debt reserve adjustments (2) 883 - 883 NM Op
Slide 22: Free Cash Flow
Free Cash Flow Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Free Cash Flow (In Thousands) Free cash flow represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. Sy