Slide 1: Sysco 4Q and FY21 Earnings Results
Sysco 4Q and FY21 Earnings Results August 10
Slide 2: Forward Looking Statements
Forward Looking Statements Statements made in this presentation or in our earnings call for the fourth 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 R
Slide 3: Kevin Hourican, President & CEO
KEVIN HOURICAN President & CEO
Slide 4: Recovery Momentum Continues, and Supports Strong Fourth Quarter Performance
Recovery Momentum Continues, and Supports Strong Fourth Quarter Performance Recovery in U.S. stronger than expected, taking hold in International markets Strong top-line and disciplined cost management drove better-than-expected profitability Improved cash flow performance facilitated deleveraging a
Slide 5: Sysco Total Sales and Restaurant Industry Sales Both Exceeded 2019 Levels
Sysco Total Sales and Restaurant Industry Sales Both Exceeded 2019 Levels 4Q 2021 vs. 4Q 2020 4Q 2021 vs. 4Q 2019 Total Sysco Sales 82% 4% 88% 8% U.S. Sales Restaurant Industry 66% 14% Sales Industry Independent 80% 16% Sales Source: NPD Group 5
Slide 6: Restaurant Industry Near Full Recovery
Restaurant Industry Near Full Recovery Total Foodservice Industry $ sales growth vs. same month in 2019 – accounts for inflation U.S. foodservice industry at ~95% of 2019 levels June 2021 Broadline above June 2019 levels Recovery progressing much faster than industry expectations Source: Technomic T
Slide 7: Restaurant Industry Health is Strong
Restaurant Industry Health is Strong Annualization of Onset of COVID Restaurant foot traffic up since March 2021 and continues to surpass grocery Onset of COVID Source: SafeGraph 7
Slide 8: Consumer Spending Supporting Recovery and Growth
Consumer Spending Supporting Recovery and Growth Consumers now spending more away from their homes than during 2019 Healthy consumer spending levels continue to support both our customers and our business Projected Sysco is able to utilize its scale, fleet and distribution network to better support
Slide 9: Maximizing our Opportunity to Recover Faster than the Industry
We Are Maximizing our Opportunity to Recover Faster than the Foodservice Distribution Industry Sysco is well poised to take market share as business returns to the Food-Away- From-Home industry We are better able to leverage sales consultants, our fleet and our network to meet rising customer demand
Slide 10: Elevating our Customers through our Restaurants Rising Campaign
Elevating our Customers through our Restaurants Rising Campaign Initiatives to help support our customers and keep their businesses running smoothly Enhanced digital technology to increase productivity Personalization program that offers optimized pricing and early returns Our net promoter score lea
Slide 11: We Are Accelerating Our International Strategic Initiatives
We Are Accelerating Our International Strategic Initiatives Talented leadership team is in place Strong business and leadership positions in Canada and Ireland (our longest-tenured International markets) Solid base in the UK, with strong growth potential post-COVID France is a turnaround situation w
Slide 12: Strong Financial Performance and Market Share Gains in a Challenging Year
Strong Financial Performance and Market Share Gains in a Challenging Year Sysco and Total Industry Operator Growth vs. 2019 Taking market share through large national customer wins and 10% growth in local customer count Delivering results while developing a transformation strategy that is beginning
Slide 13: Our Recipe For Growth
Our Recipe For Growth Sysco is a purpose-driven organization, defining the future of our industry PURPOSE | Our Why MISSION | Our What IDENTITY | Our Role Connecting the world to share Delivering success for our Together we define the future of food and care for one another customers through industr
Slide 14: Aaron Alt, EVP & CFO
AARON ALT. EVP & CFO
Slide 15: 4Q21 Total Sysco Results
4Q21 Total Sysco Results Total Sysco 4Q21 Sales $16.1B 82% Gross Profit $2.9B 86% 1 Adj. Operating Income $605M NM 1 Adj. EBITDA $781M NM 1 Adj. EPS $0.71 345% Total Sysco sales 4% above 4Q fiscal 2019 levels 1 See Non-GAAP reconciliations at the end of the presentation. Note: FY21 results include i
Slide 16: 4Q21 U.S. Foodservice Results
4Q21 U.S. Foodservice Results U.S. U.S. Foodservice Foodservice 4Q21 Sales $11.5B 88% Gross Profit $2.2B 90% 1 Adj. Operating Expenses $1.4B 40% 1 Adj. Operating Income $818M NM Both local sales and case growth above comparable period in fiscal 2019 1 See Non-GAAP reconciliations at the end of the p
Slide 17: 4Q21 SYGMA Results
4Q21 SYGMA Results SYGMA 4Q21 Sales $1.9B 45% Gross Profit $160M 40% 1 Adj. Operating Expenses $143M 39% 1 $17M Adj. Operating Income 48% Fourth consecutive quarter of SYGMA sales growth 1 See Non-GAAP reconciliations at the end of the presentation. Note: FY21 results include impact of 53rd week. 17
Slide 18: 4Q21 International Results
4Q21 International Results International 4Q21 Sales $2.5B 83% Gross Profit $496M 89% 1 Adj. Operating Expenses $496M 49% 1 Adj. Operating Income - NM Easing restrictions and improving sales setting up an encouraging fiscal 2022 1 See Non-GAAP reconciliations at the end of the presentation. Note: FY2
Slide 19: FY21 Total Sysco Results
FY21 Total Sysco Results Total Sysco FY21 Sales $51.3B -3% Gross Profit $9.4B -6% 1 Adj. Operating Income $1.5B -15% 1 Adj. EBITDA $2.2B -9% 1 Adj. EPS $1.44 -28% Sales trends improving as markets reopen 1 See Non-GAAP reconciliations at the end of the presentation. Note: FY21 results include impact
Slide 20: FY21 U.S. Foodservice Results
FY21 U.S. Foodservice Results U.S. U.S. Foodservice Foodservice FY21 Sales $35.7B -3% Gross Profit $7.0B -3% 1 Adj. Operating Expenses $4.7B -6% 1 Adj. Operating Income $2.3B 3% Focused on driving penetration of Sysco private brand sales in fiscal 2022 1 See Non-GAAP reconciliations at the end of th
Slide 21: FY21 SYGMA Results
FY21 SYGMA Results SYGMA FY21 Sales $6.5B 17% Gross Profit $554M 15% 1 Adj. Operating Expenses $501M 14% 1 $53M Adj. Operating Income 23% SYGMA sales grew in each quarter during fiscal 2021 1 See Non-GAAP reconciliations at the end of the presentation. Note: FY21 results include impact of 53rd week.
Slide 22: FY21 International Results
FY21 International Results International FY21 Sales $8.4B -14% Gross Profit $1.6B -16% 1 Adj. Operating Expenses $1.8B -4% 1 Adj. Operating Loss ($129M) -219% New leadership and strategy expected to drive improved performance in fiscal 2022 1 See Non-GAAP reconciliations at the end of the presentati
Slide 23: Strong Cash Flow During the Fourth Quarter and Fiscal Year
Strong Cash Flow During the Fourth Quarter and Fiscal Year FY20 FY21 Cash from Ops $1.6B $1.9B 18% Free Cash Flow1 $0.9B $1.5B 61% We exceeded our cash flow guidance and reduced debt 1 See Non-GAAP reconciliations at the end of the presentation. Note: FY21 results include impact of 53rd week. 23
Slide 24: We Deleveraged Our Balance Sheet by $3.4B in FY21
We Deleveraged Our Balance Sheet by $3.4B in FY21 and are Targeting a Further $450M in FY22 1. Repayment of $750M note maturing in October 2020 in Q1 FY21 2. $700M Paydown of Credit Facility in Q3 FY21 3. March Repayment of £300M UK Commercial Paper Program 4. April Repayment of £200M UK Commercial
Slide 25: We are Updating our Fiscal Year 2022 Guidance
We are Updating our Fiscal Year 2022 Guidance Increasing adjusted EPS by $0.10 for FY22 by moving the range up to $3.33 - $3.53 25
Slide 26: Our Transformational Initiatives Will Drive Future Value
Our Transformational Initiatives Will Drive Future Value We remain resolutely focused on managing the business recovery and building customer-centric capabilities to accelerate long-term growth 26
Slide 27: Sysco: At the heart of food and service
S/sco At the heart of food and service
Slide 28: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS
Slide 29: 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 30: Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) EBITDA represents net earnings (loss) plus (i) interest expense, (ii) income tax expense and benefit, (iii) depreciation and (iv) amortization. The net earnings (loss) component of our EBITDA calculation is impacted by Certain I
Slide 31: Impact of Certain Items, 4Q21
Impact of Certain Items, 4Q21 Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items (Dollars in Thousands, Except for Share and Per Share Data) 14-Week 13-Week Period Ended Period Ended Change Jul. 3, 2021 Jun. 27, 2020 in Dollars % Change Op
Slide 32: EBITDA, 4Q21
EBITDA, 4Q21 Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (In Thousands) 14-Week 13-Week Period Ended Period Ended Change Jul. 3, 2021 Jun. 27, 2020 in Dollars %/bps C
Slide 33: Impact of Certain Items, 4Q21 (Segment)
Impact of Certain Items, 4Q21 (Segment) Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments (Dollars in Thousands) 14-Week 13-Week Period Ended Period Ended Change Jul. 3, 2021 Jun. 27, 2020 in Dollars
Slide 34: Impact of Certain Items, FY21
Impact of Certain Items, FY21 Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items (Dollars in Thousands, Except for Share and Per Share Data) 53-Week 52-Week Period Ended Period Ended Change Jul. 3, 2021 Jun. 27, 2020 in Dollars % Change Op
Slide 35: EBITDA, FY21
EBITDA, FY21 Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (In Thousands) 53-Week 52-Week Period Ended Period Ended Change Jul. 3, 2021 Jun. 27, 2020 in Dollars %/bps C
Slide 36: Impact of Certain Items, FY21 (Segment)
Impact of Certain Items, FY21 (Segment) Sysco Corporation and its Consolidated Subsidiaries Segment Results Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Applicable Segments (Dollars in Thousands) 53-Week 52-Week Period Ended Period Ended Change Jul. 3, 2021 Jun. 27, 2020 in Dollars
Slide 37: 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
Slide 38: Net Debt to Adjusted EBITDA Leverage Ratio Target
Net Debt to Adjusted EBITDA Leverage Ratio Target Net Debt to Adjusted EBITDA Leverage Ratio Targets We expect to achieve our net debt to adjusted EBITDA leverage ratio forecast in the fourth quarter of fiscal 2022. We cannot predict with certainty when we will achieve these results or whether the c