Performance Food Group Company · NYSE:PFGC
Performance Food — Jefferies Virtual Consumer Conference 2021
35 slides from Performance Food's conference presentation, Jun 23, 2021
Slide 1: Performance Food Group
Performance Food Group Jefferies Virtual Consumer Conference June 2021 Jefferies 2021 1
Slide 2: Disclaimer
Disclaimer This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to our expectations
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) Important Additional Information and Where to Find It In connection with the proposed transaction, PFG intends to file with the SEC a registration statement on Form S-4 (the “Registration Statement”), which will include a prospectus with respect to the shares of PFG’s common stock
Slide 4: Performance Food Group Update
Performance Food Group Update Jefferies 2021 4
Slide 5: Performance Food Group at a Glance
Performance Food Group at a Glance LTM Mar-21 Second largest food distributor in the U.S. LTM Mar-21 Sales Adj. EBIDTA(4) $27 $418 Participates in the growing $311bn foodservice distribution industry(1) as well as the ~$110bn C-Store distribution industry(2) billion million Market Cap(3) Enterpr
Slide 6: Attractive Industry Fundamentals
Attractive Industry Fundamentals PFG operates in the $311 billion U.S. food service Food-Away-From-Home Market Size distribution industry ($ in billions) ― Supplies the $969 billion food-away-from-home industry Scaling in the ~$110 billion C-Store distribution industry Demographic fundamentals
Slide 7: Leading Market Position
Leading Market Position Reflects Pro-Forma CY2019 revenue as if the acquisitions of Eby-Brown and Reinhart Foodservice had occurred as of December 30, 2018 Estimated Revenues of Top U.S. Foodservice and U.S. Convenience Store Distributors(1) (US$ in millions) Foodservice Distributor Convenience Stor
Slide 8: Customer-Centric Business Model Underpins Sustainable Growth
Customer-Centric Business Model Underpins Sustainable Growth Net Revenue Growth (1) Locally-based decision making and customer Food Away from Home Market Size service to remain nimble at the point of PFG US Foods Sysco transaction 250% 233.5% 200% 171.6% Salespeople understand customers’ busines
Slide 9: Proven Ability to Grow Most Profitable Customers, Brands and Products
Proven Ability to Grow Most Profitable Customers, Brands and Products Sales Strategy Independent Foodservice Mix Focus on selling to our most profitable customers (Independent locations) and selling our most profitable brands (Performance Brands) 33.6% 25.6% Higher Performance Brand sales drive
Slide 10: PFG Segment Overview
PFG Segment Overview PFG Operating Segments Pre-COVID Business Mix(2) Net Sales One of the largest broadline distributors by net sales in the U.S. Vistar A leading distributor to independent pizzerias in 32% the U.S. Over $3.9bn sales of proprietary Performance Brands consisting of 22,000+ SKU
Slide 11: PFG has a Long Standing Track Record of Delivering Consistent Growth
PFG has a Long Standing Track Record of Delivering Consistent Growth Category leader in an attractive industry Track Record of Net Sales Growth ($ in billions) $42 Customer-centric business model with local decision making $25 – Driving consistent market share gains, new customer wins $18 $20 $1
Slide 12: PFG Leadership Flexed Different Levers to Manage through Uncertain Environment
PFG Leadership Flexed Different Levers to Manage through Uncertain Environment Managed COVID volatility in Q4'20 through Experienced strong COVID recovery Q3'21 - Q2'21(Mar-20 through Dec-20): current (2021 YTD): Net Sales Protect the balance sheet Prepare for growth ($ millions) ― Ensure liquid
Slide 13: Performance Brands are a Key Strategic Initiative
Performance Brands are a Key Strategic Initiative Proprietary brands are a key competitive advantage in Umbrella Brands – Tiered Strategy the industry Broadline Roma ― Performance Brands include exclusive products offered across a wide variety of over 22,000 SKUs ― PFG generated $3.9 billion in sa
Slide 14: Eby-Brown and Reinhart Investments have Outperformed Expectations
Eby-Brown and Reinhart Investments have Outperformed Expectations Eby-Brown provided a successful entry into c-store distribution Reinhart represented an acquisition in the Foodservice segment − Closed acquisition April 29, 2019 − Closed acquisition on December 30, 2019 − Enabled PFG to strategi
Slide 15: Core-Mark Overview
Core-Mark Overview Jefferies 2021 15
Slide 16: Core-Mark Strategic Rationale
Core-Mark Strategic Rationale Expands geographic reach, market diversification, and overall scale ― Enhances PFG’s distribution platform and C-Store opportunities ― Combined LTM net sales of ~$44 billion Complementary customer-centric operating models ― Consistent go-to-market approach with sell
Slide 17: PFG's Track Record in M&A: Benefits
PFG’s Track Record in M&A: Benefits External Stakeholders Internal Stakeholders ALIGNED TO MARKET GROWTH DYNAMICS Adding great talent ORIENTED Insights-driven Geographic Opportunistic Customer-centric More career opportunities expansion Channel growth Scale M&A Cultural alignment Approach Le
Slide 18: PFG and Core-Mark, Pro-forma Highlights
PFG and Core-Mark, Pro-forma Highlights(1) What Core-Mark Brings to PFG LTM Mar-21 Sales US$MM ~$17,000 Scale and Geographic Reach ~$43,800 Channel Diversification Customer base and product offering Vistar Talent and cultural fit + Core-Mark: Opportunities for efficiency and cross-selling
Slide 19: Core-Mark Snapshot
Core-Mark Snapshot Business Description One of the largest wholesale distributors to the convenience retail industry in North America with $17 billion in net sales(1) and $211 million in Adj. EBITDA in the LTM period Services approximately 40,000 customer locations in all 50 states in the U.S.,
Slide 20: Geographic Reach: Core-Mark Enhances Presence
Geographic Reach: Core-Mark Enhances Presence Geographic Benefits Strengthens Western US Enhances South Entry into Canada Customer Benefits Leverage combined portfolio to enhance offering to customers Improved network efficiency and increased scale PFG Headquarters Performance Foodservice
Slide 21: Convenience Store Opportunity Landscape
Convenience Store Opportunity Landscape Store Composite Largest Operators(1) Key Players (# of Stores) 501+ Stores 20% 9364 5933 201-500 Stores 3900 4% 153,000 2181 51-200 Stores 1679 1489 1272 Total C-Stores 1017 942 880 5% 1-10 Stores 64% 11-50 Stores 7% Acquired Convenience Store Distribution Opp
Slide 22: Provides National Platform to Pursue Foodservice Sales into the C-store End Channel
Provides National Platform to Pursue Foodservice Sales into the C-store End Channel... Total U.S. Convenience Store Foodservice Sales and Forecast at Current Prices, 2015-2025(1) ($ in billions) $59 $61 $55 $56 $58 $54 $54 $53 $48 $51 $50 2015A-2019A CAGR: +3.6% 2020E-2025E CAGR: +4.1% 2015A 2016A 2
Slide 23: …with Significant Tailwinds Post-COVID
…with Significant Tailwinds Post-COVID 58% 51% 30% While post-COVID performance continues to be discussed, potential c- Of Operators will Of Operators will Of Operators will store foodservice tailwinds include an increased focus on heightened Emphasize Focus on More Focus on Ready- spending and incr
Slide 24: Core-Mark Acquisition Expected to be Accretive to PFG Platform
Core-Mark Acquisition Expected to be Accretive to PFG Platform (Pre-COVID Financials as of LTM Dec-19 ) Pro-Forma Adj. EBITDA - CapEx $406mm(2) $162mm $568mm (% Conversion)(1) 76.0% 84.9% 78.3% The acquisition of Core- Mark is expected to ROIC(3) ~8% ~11% ~9% increase EBITDA by 36% and be accretive
Slide 25: Synergies Overview
Synergies Overview • PFG has a history of successful acquisition integrations • Business functions analyzed during the diligence process included: Corporate, Buying/Procurement, Warehouse/Operations, and Trucking/Distribution • Synergies expected to be realized by the 3rd full year post closing Esti
Slide 26: A Complementary Combination
A Complementary Combination CONVENIENCE STORES SINGLE-SERVE RESTAURANTS & IMMEDIATE & CULINARY CONSUMPTION Jefferies 2021 26
Slide 27: Early Stages of Driving Higher Margin Foodservice Sales into C-Store Channel
Early Stages of Driving Higher Margin Foodservice Sales into C-Store Channel Mar-19 Acquisition Rationale Integration Update Ability to leverage legacy PFG expertise in With PFG backing, Eby was able to foodservice to offer unique products in expand service with new Florida and the fastest-growi
Slide 28: Key Takeaways
Key Takeaways PFG has a long standing track record of delivering consistent growth with strong momentum Acquisition of Core-Mark expands geographic reach and overall scale, enhancing PFG’s attractive customer base and product offerings; complimentary to Eby-Brown segment and further enables pene
Slide 29: Appendix
Appendix Jefferies 2021 29
Slide 30: Statement regarding non-GAAP financial measures
Statement regarding non-GAAP financial measures • This presentation includes financial measures that are not calculated in accordance with GAAP, including Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Free Cash Flow Conversion and Adjusted Diluted EPS. Such measures are not recognized ter
Slide 31: Non-GAAP Financial Measures – Performance Food Group (as of LTM Dec-19)
Non-GAAP Financial Measures – Performance Food Group (as of LTM Dec-19) Six Months Ended Fiscal Year Ended LTM Period Ended December 28, 2019 December 29, 2018 June 29, 2019 December 28, 2019 (In millions) Net income $ 77.3 $ 71.3 $ 166.8 $ 172.8 Interest expense 43.7 31.6 65.4 77.5 Income tax expen
Slide 32: Non-GAAP Financial Measures – Performance Food Group (as of FYE Jun-20 and Historical)
Non-GAAP Financial Measures – Performance Food Group (as of FYE Jun-20 and Historical) Fiscal year ended June 27, 2020 June 29, 2019 June 30, 2018 July 1, 2017 July 2, 2016 June 27, 2015 June 28, 2014 June 29, 2013 June 30, 2012 (In millions) Net (loss) income $ (114.1) $ 166.8 $ 198.7 $ 96.3 $ 68.3
Slide 33: Non-GAAP Financial Measures – Performance Food Group (as of LTM Mar-21)
Non-GAAP Financial Measures – Performance Food Group (as of LTM Mar-21) Three Months Ended Three Months Ended Three Months Ended Three Months Ended LTM Period Ended June 27, June 29, September September December December March 27, March 28, March 27, 2021 2020 2019 26, 2020 28, 2019 26, 2020 28, 201
Slide 34: Non-GAAP Financial Measures – Core-Mark (as of FYE Dec-19)
Non-GAAP Financial Measures – Core-Mark (as of FYE Dec-19) EBITDA Non-GAAP Reconciliation Fiscal Year ended Commentary ($ in millions) 31-Dec-19 Net income $57.7 A Interest expense, net 14.4 A Interest expense, net, is reported net of interest income. Provision for income taxes 19.7 Depreciation & a
Slide 35: Non-GAAP Financial Measures – Core-Mark (as of LTM Mar-21)
Non-GAAP Financial Measures – Core-Mark (as of LTM Mar-21) EBITDA Non-GAAP Reconciliation Commentary LTM Period Ended ($ in millions) 31-Mar-21 Net income $67.4 A Interest expense, net, is reported net of interest income. A Interest expense, net 10.1 Provision for income taxes 20.9 Depreciation & am
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