Slide 1: Q4 and Full Year Fiscal 2023 Earnings Results
Q4 and Full Year Fiscal 2023 Earnings Results NOVEMBER 14, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Special Note About Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumpti
Slide 3: Overview
Overview 1 Strong Results in Q4 and Full Year FY23 2 Continued Momentum in Growth 3 Positioned for Success in FY24 and Beyond 3
Slide 4: Delivering Strategic Milestones
Delivering Strategic Milestones - Results reflect ongoing focus on growth across organization - Strength from net new business, pricing actions, and base business growth - Year-over-year AOI growth drives profitability trajectory - Continued momentum in Q4 with favorable near-term profit and margin
Slide 5: Strong Progress Across Key Metrics in FY23
Strong Progress Across Key Metrics in FY23 Organic Revenue Growth: +16% Global FSS: +18% Uniform Services: +5.5% Adjusted Operating Income Growth1: +34% Global FSS1: +46% Uniform Services1: +10% Free Cash Flow: $334M FICA Deferral: $64M Spin-off / restructuring costs: $72M Free Cash Flow Before Item
Slide 6: Strong Progress Across Key Metrics in FY23
Strong Progress Across Key Metrics in FY23 Revenue Adjusted Operating Income (AOI) $20,000 $1,200 $18,000 $1,000 $16,000 $14,000 $800 $12,000 $10,000 $600 $8,000 $400 $6,000 $4,000 $200 $2,000 $0 $0 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Revenue ($) Organic Revenue AOI ($) AOI Growth1 AOI
Slide 7: Strong Progress Across Key Metrics in FY23
Strong Progress Across Key Metrics in FY23 Free Cash Flow Leverage $500 8.0x $400 7.0x $300 6.0x $200 5.0x $100 4.0x $0 3.0x ($100) 2.0x ($200) 1.0x FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Free Cash Flow Net Debt to Covenant Adjusted EBITDA Reported Debt Spin- Aramark Pre-Spin related2 Pos
Slide 8: Continued Momentum in Q4
Continued Momentum in Q4 ($21) $4,200 $4,180 $3,720 $256 +12% +33% Organic Growth $191 Growth1 Segment Revenue ($) Organic Revenue AOI ($) AOI Growth1 AOI Margin (%) AOI Margin bps Growth (%) Growth1 FSS United States $3,067 10.1% $234 24.1% 7.6% +86bps FSS International $1,134 18.9% $52 51.5% 4.6%
Slide 9: Sustainable Step Change in Net New Business
Sustainable Step Change in Net New Business Global FSS Annualized New Business Wins Retention Annualized Net New Business (in millions) (in millions) 95.8% $1,178 $1,187 95.6% 95.5% $582 $1,008 $564 $837 $441 94.4% $96 5-year Avg FY21 FY22 FY23 5-year Avg FY21 FY22 FY23* 5-year Avg FY21 FY22 FY23 (F
Slide 10: …With Outsized Profit and Margin Drivers in Mid-Term
…With Outsized Profit and Margin Drivers in Mid-Term FY24 FY25 FY26 New business contract maturity X X Recovery of price-inflation lag X Supply Chain (compliance / scale / new deals) X X X “Front Line Contribution” improvement X X X SG&A containment X X X 10
Slide 11: Reminder: Quarterly Cadence of Global FSS AOI Margin
Reminder: Quarterly Cadence of Global FSS AOI Margin Global FSS AOI Margin 7.0% 6.5% Historic “U-shaped” cadence driven primarily by higher profitability in Q1 and Q4 related to seasonal peak activity in Education sector 6.0% 6.1% and the Sports & Entertainment and Destinations businesses 5.5% 5.0%
Slide 12: FY24 Outlook
FY24 Outlook Aramark currently expects the following full-year performance for FY24: The Company provides its expectations for organic revenue growth, Adjusted Operating Income growth, Adjusted EPS growth, and Net Debt to Covenant Adjusted EBITDA (“Leverage Ratio”) on a non-GAAP basis, and does not
Slide 13: Halftime Review: Progress in Global FSS Since Analyst Day
“Halftime” Review: Progress in Global FSS Since Analyst Day (Dec. 2021) Revenue AOI AOI Margin $16,083 $743 4.7% 3.7% $13,687 $513 $9,675 $119 1.2% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Outlook Outlook Outlook >78% Revenue Growth >620% AOI Growth >360bps AOI Margin Expansion $
Slide 14: Halftime Review: Analyst Day FY25 Targets – Global FSS Assumptions
“Halftime” Review: Analyst Day FY25 Targets – Global FSS Assumptions As reviewed in September 2023: Revenue AOI Margin Implied AOI $ Adjusted EPS Leverage Dec. 2021 >$17B 6.1%- 6.6% $1.035B-$1.125B n/a n/a Note: Adjusted EPS and Leverage reflected Total Company targets in Dec ’21 that were not broke
Slide 15: Halftime Review: Current Timeline Expectations – Global FSS
“Halftime” Review: Current Timeline Expectations – Global FSS As reviewed in September 2023: FY24 FY25 FY26 What’s Changed Since Dec. ‘21? Revenue Stronger net new business / pricing AOI Margin (a)(b) Stronger net new business / price-inflation lag AOI $ (a) Adj. EPS Interest rate +250bps Leverage N
Slide 16: Takeaway: Expected Strong Trajectory Ahead
Takeaway: Expected Strong Trajectory Ahead - Confidence in not only achieving objectives, but getting to and through… - Clear, consistent strategic priorities - Strong, sustainable growth framework with resources in place - Hospitality, client-oriented culture firmly entrenched - Focused on driving
Slide 17: Reach For Remarkable
Reach For Remarkable SERVICE. INNOVATION. GROWTH. aramark yr
Slide 18: Appendix
APPENDIX aramark 3 MA Reach For Remarkable SERVICE. INNOVATION. GROWTH.
Slide 19: Modeling Assumptions
Modeling Assumptions FY24 Modeling Assumptions • Net Interest Expense: ~$335M • Adjusted Tax Rate: ~26% • Share count: ~270M Seasonality: • AOI Margin – “U-shaped” cadence driven primarily by higher profitability in Q1 and Q4 related to seasonal peak activity in Education sector and the Sports & Ent
Slide 20: Revenue by Segment
Revenue by Segment Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY23 Three Months Ended Change Three Months Ended Change Three Months Ended Change Three Months Ended Change Twelve Months Ended Change 12/30/22 12/31/21 % 3/31/23 4/1/22 % 6/30/23 7/1/22 % 9/29/23 9/30/22 % 9/29/23 9/30/22 % Revenue (as reported) FSS U
Slide 21: CapEx and Client Payments
CapEx and Client Payments ($ in thousands) Three Months Ended Three Months Ended Three Months Ended Three Months Ended Twelve Months Ended 12/30/22 12/31/21 3/31/23 4/1/22 6/30/23 7/1/22 9/29/23 9/30/22 9/29/23 9/30/22 Purchases of property and equipment and other $ 102,559 $ 73,722 $ 100,352 $ 99,3
Slide 22: Net New Business by Segment
Net New Business by Segment FSS United States Annualized New Business Wins Retention Annualized Net New Business (in millions) (in millions) 96.0% $779 95.8% 95.8% $735 $687 $355 $319 $517 $296 94.5% $(14) ($14) 5-year Avg FY21 FY22 FY23 5-year Avg FY21 FY22 FY23 (FY16-FY20) (FY16-FY20) 5-year Avg F
Slide 23: Selected Operational and Financial Metrics
Selected Operational and Financial Metrics Adjusted Revenue (Organic) Adjusted Revenue (Organic) represents revenue growth, adjusted to eliminate the effect of certain material acquisitions and divestitures, the estimated impact of the 53rd week and the impact of currency translation. Adjusted Opera
Slide 24: Selected Operational and Financial Metrics (continued)
Selected Operational and Financial Metrics (continued) Covenant Adjusted EBITDA Covenant Adjusted EBITDA represents net income attributable to Aramark stockholders adjusted for interest and other financing costs, net; provision for income taxes; depreciation and amortization and certain other items
Slide 25: Post-Spin Reference Point Support
Post-Spin Reference Point Support 25
Slide 26: Global FSS FY23 AOI Post-Spin Reference Point – Q1
Global FSS FY23 AOI Post-Spin Reference Point – Q1 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES GLOBAL FSS ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN (Unaudited) (In thousands) Three Months Ended December 30, 2022 FSS United States FSS International Corporate Global FSS Items to R
Slide 27: Global FSS FY23 AOI Post-Spin Reference Point – Q2
Global FSS FY23 AOI Post-Spin Reference Point – Q2 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES GLOBAL FSS ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN (Unaudited) (In thousands) Three Months Ended March 31, 2023 FSS United States FSS International Corporate Global FSS Items to Reba
Slide 28: Global FSS FY23 AOI Post-Spin Reference Point – Q3
Global FSS FY23 AOI Post-Spin Reference Point – Q3 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES GLOBAL FSS ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN (Unaudited) (In thousands) Three Months Ended June 30, 2023 FSS United States FSS International Corporate Global FSS Items to Rebas
Slide 29: Global FSS FY23 AOI Post-Spin Reference Point – Q4
Global FSS FY23 AOI Post-Spin Reference Point – Q4 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES GLOBAL FSS ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN (Unaudited) (In thousands) Three Months Ended September 29, 2023 FSS United States FSS International Corporate Global FSS Items to
Slide 30: Global FSS FY23 AOI Post-Spin Reference Point – Full Year
Global FSS FY23 AOI Post-Spin Reference Point – Full Year ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES GLOBAL FSS ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN (Unaudited) (In thousands) Fiscal Year Ended September 29, 2023 FSS United States FSS International Corporate Global FSS Ite
Slide 31: Global FSS FY23 Adjusted EPS Post-Spin Reference Point – Q1
Global FSS FY23 Adjusted EPS Post-Spin Reference Point – Q1 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES REBASED GLOBAL FSS ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE (Unaudited) (In thousands) Three Months Ended December 30, 2022 Aramark and Rebased Global Items to Rebase Sub
Slide 32: Global FSS FY23 Adjusted EPS Post-Spin Reference Point – Q2
Global FSS FY23 Adjusted EPS Post-Spin Reference Point – Q2 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES REBASED GLOBAL FSS ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE (Unaudited) (In thousands) Three Months Ended March 31, 2023 Aramark and Rebased Global Items to Rebase Subsid
Slide 33: Global FSS FY23 Adjusted EPS Post-Spin Reference Point – Q3
Global FSS FY23 Adjusted EPS Post-Spin Reference Point – Q3 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES REBASED GLOBAL FSS ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE (Unaudited) (In thousands) Three Months Ended June 30, 2023 Aramark and Rebased Global Items to Rebase Subsidi
Slide 34: Global FSS FY23 Adjusted EPS Post-Spin Reference Point – Q4
Global FSS FY23 Adjusted EPS Post-Spin Reference Point – Q4 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES REBASED GLOBAL FSS ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE (Unaudited) (In thousands) Three Months Ended September 29, 2023 Aramark and Rebased Global Items to Rebase Su
Slide 35: Global FSS FY23 Adjusted EPS Post-Spin Reference Point – Full Year
Global FSS FY23 Adjusted EPS Post-Spin Reference Point – Full Year ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES REBASED GLOBAL FSS ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE (Unaudited) (In thousands) Fiscal Year Ended September 29, 2023 Aramark and Rebased Global Items to Reb
Slide 36: Historical Trend Support
Historical Trend Support aramark 3 MA Reach For Remarkable SERVICE. INNOVATION. GROWTH
Slide 37: AOI Margin FY19
AOI Margin FY19 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN (Unaudited) (In thousands) Fiscal Year Ended September 27, 2019 Aramark & FSS United States FSS International Uniform Corporate Subsidiaries Revenue (as reported) $ 9,898,568 $
Slide 38: AOI Margin FY20
AOI Margin FY20 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES ADJUSTED CONSOLIDATED OPERATING INCOME (LOSS) MARGIN (Unaudited) (In thousands) Fiscal Year Ended October 2, 2020 Aramark & FSS United States FSS International Uniform Corporate Subsidiaries Revenue (as reported) $ 7,366,67
Slide 39: AOI Margin FY21
AOI Margin FY21 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN (Unaudited) (In thousands) Fiscal Year Ended October 1, 2021 Aramark & FSS United States FSS International Uniform Corporate Subsidiaries Revenue (as reported) $ 6,809,258 $ 2,8
Slide 40: Net Debt to Covenant Adjusted EBITDA Trend
Net Debt to Covenant Adjusted EBITDA Trend ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES NET DEBT TO COVENANT ADJUSTED EBITDA (Unaudited) (In thousands) Twelve Months Ended September 27, 2019 October 2, 2020 October 1, 2021 September 30, 2022 September 29, 2023 Net Income (Loss) Attri
Slide 41: Global FSS AOI Margin FY21
Global FSS AOI Margin FY21 ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES GLOBAL FSS ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN (Unaudited) (In thousands) Fiscal Year Ended October 1, 2021 FSS United States FSS International Corporate Global FSS Items to Rebase Rebased Global FSS Re
Slide 42: Free Cash Flow Trend
Free Cash Flow Trend ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES FREE CASH FLOW (Unaudited) (In thousands) Fiscal Year Ended September 27, 2019 October 2, 2020 October 1, 2021 September 30, 2022 September 29, 2023 Net Cash provided by operating activities $ 984,227 $ 176,682 $ 657,0
Slide 43: Other Non-GAAP Schedules
Other Non-GAAP Schedules aramark 3 MA Reach For Remarkable SERVICE. INNOVATION. GROWTH
Slide 44: AOI Margin
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Slide 45: Net Debt to Covenant Adjusted EBITDA
Net Debt to Covenant Adjusted EBITDA 45
Slide 46: Free Cash Flow
Free Cash Flow aramark Jr” ARAMARK AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES FREE CASH FLOW. (Cnaudited) An thousands) Fiscal Yeur Ended Nine Months Ended__ Three Months Ended September 29,2025 June 30,2023 ber 29,2023, Net Cash provided by (used in) operating activities 3 765429 2700) S
Slide 47: Global FSS AOI Margin
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