Sysco Corporation · NYSE:SYY

Sysco — ICR Conference 2016

25 slides from Sysco's conference presentation, Jan 13, 2016

Slide 1: ICR Conference
ICR Conference January 13, 2016
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements made herein that look forward in time or express management’s expectations or beliefs with respect to the occurrence of future events are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They include, but are not lim
Slide 4: Market Context and Sysco Overview
Market Context and Sysco Overview Bill DeLaney January 13, 2016
Slide 6: Away from home foodservice sales trending favorably
Away from home foodservice sales trending favorably % of total food spend; retail sales equivalent1 60% Retail 57% Foodservice 55% 50% 50% 50% 45% ICR 42% CONFERENCE 01.13.16 40% PAGE 6 1982 1997 2008 2015 © 2016 All Rights Reserved. Sysco Corporation. 1 Retail Sales Equivalent Share; Retail include
Slide 7: Industry leader in a $265 billion market
Industry leader in a $265 billion market US and Canada foodservice market size Growth forecasted across all segments v v (excluding alcohol) Forecasted $B; nominal growth Top 2015 forecasted top 2015-20 Real Segments distributor sales1 ($B) CAGR (Percent) 2.7% CAGR Restaurants LSR 87 2.1% $260B $265
Slide 8: Our industry is fragmented and highly competitive
Our industry is fragmented and highly competitive Sysco’s competitive landscape in the US and Canada, 2014 (~$260B core foodservice distribution market1) Sysco ~18% US Foods ~9% PFG ~5% GFS ~4% ICR CONFERENCE Other Reinhart ~3% 01.13.16 (~15,000) PAGE 8 ~58% 3 Regionals © 2016 All Rights Reserved. S
Slide 9: Business performance has improved and we are building momentum
Business performance has improved and we are building momentum • Improving local case growth trends − Six consecutive quarters of growth through 1Q16 • Gross margins have stabilized • Generating substantial free cash flow1 • Consistently increasing the dividend • Recently launched the first half of
Slide 11: Our Plan has three primary objectives driven by four key levers
Our Plan has three primary objectives driven by four key levers Key levers to achieving targets Three-year targets Operating income growth of at least $400 million Accelerate Improve local case growth gross margins Capture 20-30% in Year 1 EPS growth at a faster rate than operating income Leverage R
Slide 12: We are assessing opportunities to exceed our plan
We are assessing opportunities to exceed our plan • Pleased with local case growth • Persistent deflationary pressure • More aggressive approach to expense management ICR CONFERENCE 01.13.16 PAGE 12 © 2016 All Rights Reserved. Sysco Corporation.
Slide 13: Sysco is well positioned for the future
Sysco is well positioned for the future Targeted Results • Improve the customer experience • Enhance associate engagement • Achieve our financial objectives ICR CONFERENCE 01.13.16 PAGE 13 © 2016 All Rights Reserved. Sysco Corporation.
Slide 14: Strategic Plan Update and Financial Perspective
Strategic Plan Update and Financial Perspective Joel Grade January 13, 2016
Slide 15: Key levers to achieving our financial goals
Key levers to achieving our financial goals To Be Our Customers’ Most Valued and Trusted Business Partner 55-65% 20-25% 15-20% Grow gross profit Leverage supply Reduce chain costs administrative • Accelerate local costs case growth • Improve margins ICR Improve ROIC CONFERENCE 01.13.16 PAGE 15 Our P
Slide 16: Expected timeline for operating income improvements
Expected timeline for operating income improvements Operating Income Benefit FY2016 FY2017 FY2018 Cumulative ICR Capture by 20-30% 50-60% 100% CONFERENCE Year, % 01.13.16 PAGE 16 © 2016 All Rights Reserved. Operating income impact is Sysco Corporation. net of incremental costs
Slide 17: We plan to achieve our ROIC target of 15% by focusing on key activities
We plan to achieve our ROIC target of 15% by focusing on 3 key activities 1) Improve working capital management 1 2) Continue to manage capital spend in a rigorous 2 manner 3) Continually assess business segment strategic 3 value and ROIC ICR CONFERENCE 01.13.16 PAGE 17 The path to 15% ROIC will not
Slide 19: Fiscal 2Q16 Tax Update
Fiscal 2Q16 Tax Update • Sysco has favorably resolved certain tax contingencies • We expect a one-time benefit1 to fiscal 2016 GAAP EPS of approximately $0.03 ICR CONFERENCE 01.13.16 PAGE 19 © 2016 All Rights Reserved. Sysco Corporation. (1) To be recorded during 2nd quarter FY16 results
Slide 20: Closing thoughts
Closing thoughts • Making good progress toward our three-year plan • Assessing opportunities to exceed our plan • More aggressive approach to expense management ICR CONFERENCE 01.13.16 PAGE 20 © 2016 All Rights Reserved. Sysco Corporation.
Slide 21: Q&A
Q&A
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations ICR Conference January 13, 2016
Slide 23: Non-GAAP Reconciliation: Impact of Certain Items - Fiscal 2015
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items - Fiscal 2015 (In Thousands, Except for Share and Per Share Data) Sysco’s results of operations are impacted by certain items that include multiemployer withdrawal charges (MEPP), severanc
Slide 24: Non-GAAP Reconciliation: ROIC and Adjusted ROIC
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Return on Invested Capital (ROIC) and Adjusted ROIC (In Thousands) We calculate ROIC as net earnings divided by (i) stockholder’s equity, computed as the average of adjusted stockholders’ equity at the beginning
Slide 25: Non-GAAP Reconciliation: Free Cash Flow and Adjusted Free Cash Flow
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Free Cash Flow and Adjusted 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

Sysco — ICR Conference 2016 on 6ix

Sysco — ICR Conference 2016

Slide 1: ICR Conference

Slide 2: Forward-Looking Statements

Slide 3: Contents

Slide 4: Market Context and Sysco Overview

Slide 5: Our vision

Slide 6: Away from home foodservice sales trending favorably

Slide 7: Industry leader in a $265 billion market

Slide 8: Our industry is fragmented and highly competitive

Slide 9: Business performance has improved and we are building momentum

Slide 10: Contents

Slide 11: Our Plan has three primary objectives driven by four key levers

Slide 12: We are assessing opportunities to exceed our plan

Slide 13: Sysco is well positioned for the future

Slide 14: Strategic Plan Update and Financial Perspective

Slide 15: Key levers to achieving our financial goals

Slide 16: Expected timeline for operating income improvements

Slide 17: We plan to achieve our ROIC target of 15% by focusing on key activities

Slide 18: Contents

Slide 19: Fiscal 2Q16 Tax Update

Slide 20: Closing thoughts

Slide 21: Q&A

Slide 22: Non-GAAP Reconciliations

Slide 23: Non-GAAP Reconciliation: Impact of Certain Items - Fiscal 2015

Slide 24: Non-GAAP Reconciliation: ROIC and Adjusted ROIC

Slide 25: Non-GAAP Reconciliation: Free Cash Flow and Adjusted Free Cash Flow