Sysco Corporation · NYSE:SYY
Sysco — 16th Annual ICR XChange Conference 2014
18 slides from Sysco's conference presentation, Jan 14, 2014
Slide 1: 16th Annual ICR XChange Conference
B ill DeLaney President, Chief Executive Officer Chris Kreidler Executive Vice President, Chief Financial Officer 16th Annual ICR XChange Conference January 14, 2014
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements Statements included in this document and the related oral presentation that look forward in time or that express beliefs, expectations, or hopes are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking sta
Slide 3: Bill DeLaney, President & CEO
Bill DeLaney President & CEO
Slide 4: Sysco's Growth Has Outpaced the Market
4 Sysco’s Growth Has Outpaced the Market 0% 5% 10% 15% 20% 25% 1973-1980 1981-1990 1991-2000 2001-2010 2011-2012 Sales Growth (CAGR for the period shown) 10.9% 6.9% 5.0% 3.8% 2.4% 17.1% 20.3% 9.8% 6.8% 6.7% Source: Industry data adjusted to Sysco’s fiscal year basis, and based on Technomic (market e
Slide 5: Turning Adjacencies into Core Offerings
Over Time We Grow our Business by Turning “Adjacencies” into “Core Offerings” 1999 Acquired first meat company 1985 SYGMA formed 2002 Expansion of Canadian operations 2009 First acquisition in Ireland 2001 Acquired Guest Supply 2000 Acquired first produce company 2011 Formed Sysco Ventures 2012 Acqu
Slide 6: Sustainable Profitable Growth: Key Areas of Strategic Focus
Sustainable Profitable Growth 6 Key Areas of Strategic Focus Operating Margin Asset Optimization and Free Cash Flow
Slide 7: Key Initiatives
- Loyalty - Segment Focus - Corporate Brand Sysco 360 (CRM) Inside Sales Sysco Market Optimize Product Assortment & Innovation Leverage Buying Power Accelerate Sales Growth Merchandising Marketing Operations Finance & HR 7 Platform Technology Solutions iCare Key Initiatives Technology Platform Custo
Slide 8: Two Great Companies
8 Two Great Companies Bringing Together the Best of Both
Slide 9: Consistent with Sysco's Strategic Focus
9 Asset Optimization and Free Cash Flow Operating Margin Sustainable Profitable Growth Leverage customer insights Enhance and expand channels Increase customer retention Execute fold-in and regional acquisitions Build human capital Expand international growth Invest prudently in the core Increase wo
Slide 10: A Transformational Acquisition
Shareholders Employees Suppliers 10 Customers Combined strengths deliver greater value, more services and innovation for customers Strengthen our role as our customers’ most valued and trusted business partner Achieve shared efficiencies with suppliers Platform for enhanced innovation and developmen
Slide 11: Chris Kreidler, EVP & CFO
Chris Kreidler EVP & CFO
Slide 12: Approximate Total Transaction Value
12 Approximate Total Transaction Value: Equity 3.0B Equity holders of US Foods will own approx. 87 million shares or, 13%, of combined company at closing, and A representative of each of US Foods’ majority shareholders will join Sysco’s Board of Directors Cash 0.5B US Foods Net Debt $4.7B Sysco to a
Slide 13: Synergy Estimates are Realistic and Achievable
13 General & Administrative Cost of Goods Sold Warehouse and Distribution Productivity Selling and Field Productivity Distribution Network Estimates developed by functional area, but Based generally on public data Estimates will be refined using people and knowledge from both companies We hope to id
Slide 14: At Least $600 Million in Estimated Annual Synergies
Synergy General & Admin. Selling and Field Productivity Warehouse and Distribution Productivity COGS Distribution Network Identify duplicative resources Leverage combined spend Determine combined category management approach Apply warehouse best practices Technology driven efficiencies Inbound freig
Slide 15: Confident in Achieving a Successful Integration
Annual cost synergies of at least $600 million Synergy estimates are realistic and achievable These synergies will phase in over 3-4 years Total expenses to achieve synergies of $700 - $800 million, spread over three years 15 Announced leadership team Members will include key employees from both com
Slide 16: Integration Leadership Team
16 IMO will lead, plan and track the integration Overall leadership of the integration Day 1 readiness Synergy identification Organization design and structure Cross-cutting work that informs and guides the business teams Business teams Functional teams Integration Leadership Team Announced Integrat
Slide 17: Combination Creates Significant Shareholder Value
17 Earnings Immediately accretive to earnings after adjusting for transaction-related costs and amortization of intangibles Synergies Annual synergies of at least $600 million realized after three to four years Cash Flow Approximate sales of $65 billion Approximate cash flows of $2 billion Balance S
Slide 18: Good things
Good things Sysco