Sysco Corporation · NYSE:SYY

Sysco — Investor Day (May 2021)

113 slides from Sysco's investor day presentation, May 20, 2021

Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS Statements made in this presentation 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 Reform Act of 1995. Such forward looking statements reflect the
Slide 5: Kevin Hourican, President and Chief Executive Officer
KEVIN HOURICAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER Key experience Kevin is leading Sysco’s large-scale, customer-focused and growth-related transformation, aimed at further improving the way Sysco supports its customers and accelerating profitable sales growth. He is a proven business leader with
Slide 7: Our presentation today will include three important topics
OUR PRESENTATION TODAY WILL INCLUDE THREE IMPORTANT TOPICS Sysco’s growth strategy Our plans to financially support the growth strategy How our growth strategy will deliver strong financial results © Sysco 2021 | 7
Slide 8: Sysco is accelerating its global leadership position
SYSCO IS ACCELERATING ITS GLOBAL LEADERSHIP POSITION… AND WE’RE TRANSFORMING HOW WE DO BUSINESS TO BE MORE AGILE, INNOVATIVE AND GROWTH-ORIENTED THE RESULT: SALES, PROFIT AND INCREASED NET PROMOTER SCORE © Sysco 2021 | 8
Slide 9: Diversified customer base and large food-away-from-home market
SYSCO HAS A DIVERSIFIED CUSTOMER BASE AND A LARGE FOOD-AWAY-FROM-HOME MARKET FY20 Total Sysco Sales 62% Restaurants 9% Healthcare 8% Education & Government 7% Foodservice Management 7% Travel & Leisure 7% Vending, International Exports, Logistics Services, Other © Sysco 2021 | 9
Slide 10: The pace of recovery will be different for each segment
THE PACE OF RECOVERY WILL BE DIFFERENT FOR EACH SEGMENT Quick Service Restaurants Casual Dining Restaurants Foodservice Management Independents Full Service Dining Restaurants International Segment Travel & Leisure Segment Sysco’s recovery curve is elongated and sustained © Sysco 2021 | 10
Slide 11: Our global footprint creates a unique opportunity for growth
OUR GLOBAL FOOTPRINT CREATES A UNIQUE OPPORTUNITY FOR GROWTH Sysco Operating Countries No Sysco Operations International Food Group © Sysco 2021 | 11
Slide 12: Accelerating our international strategic initiatives
WE ARE ACCELERATING OUR INTERNATIONAL STRATEGIC INITIATIVES • A talented leadership team is in place • Strong business and leadership positions in Canada and Ireland (our longest tenured International businesses) • Solid base in the UK with strong growth potential post-COVID • France is a turnaround
Slide 13: Scale and unique capabilities enable growth in a fragmented industry
SYSCO’S SCALE AND UNIQUE CAPABILITIES WILL ENABLE US TO GROW IN A LARGE AND FRAGMENTED INDUSTRY Sysco has 16% market share in the U.S. Our share of wallet is 30% with independent restaurants We serve 50% of the independent restaurants currently served by broadline in the U.S. today © Sysco 2021 | 13
Slide 14: We've won $1.8B of net new business with national brands
WE'VE WON $1.8B OF NET NEW BUSINESS WITH NATIONAL BRANDS… Additionally, we have won 13k new local customers over the past year © Sysco 2021 | 14
Slide 15: Sysco is building a purpose-driven organization
Purpose-driven companies grow 3x faster on average than their peers, and employees are 11x times more likely to stay with a purpose-oriented organization Sysco is building a PURPOSE-DRIVEN Organization © Sysco 2021 | 15
Slide 16: Our unifying framework roots us in purpose, mission and values
OUR UNIFYING FRAMEWORK VALUES Rooted in Integrity who we are Committed to Inclusion Drive Together ROOTS US IN Define Excellence Grow Responsibly IDENTITY our role in the industry Together we define the future of foodservice and supply chain PURPOSE Purpose is at the root of our existence. It’s the
Slide 17: 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 customers through industry-leadin
Slide 18: Profitable growth through five strategic pillars
WE WILL DELIVER PROFITABLE GROWTH THROUGH FIVE STRATEGIC PILLARS OUTLINED IN OUR RECIPE FOR GROWTH © Sysco 2021 | 18
Slide 19: Digital
DIGITAL We will enrich the customer experience through personalized digital tools that reduce friction in the purchase experience and introduce innovation to our customers ©©Sysco Sysco2021 2021 | | 19 19
Slide 20: Products
PRODUCTS Customer-focused marketing and merchandising solutions that inspire increased sales of our broad assortment of fair priced, quality products and services © © Sysco Sysco 2021 2021 || 20 20
Slide 21: Solutions
SOLUTIONS Customized customer- focused solutions to help operators drive traffic, profit and sales © © Sysco Sysco 2021 2021 || 21 21
Slide 22: Supply chain
SUPPLY CHAIN We will efficiently and consistently serve customers with the products they need, when and how they need them, through a flexible, agile delivery framework © © Sysco Sysco 2021 2021 || 22 22
Slide 23: Customer teams
CUSTOMER TEAMS Sysco’s greatest strength is our people. People who are passionate about food and food service. Our diverse team Net Promoter Score Sales Rep Ratings delivers expertise and differentiated 9.1 services designed to help our customers grow their business 7.7 Sysco All Other Competitors ©
Slide 24: Future horizons
FUTURE HORIZONS • Corporate Social Responsibility: We are committed to responsible growth while being stewards of our company and our planet • M&A: We will cultivate new channels, new segments, and new capabilities • Funding through Cost-Out: We will fund our journey through cost-out and efficiency
Slide 25: Profitable growth through five strategic pillars, 1.5x faster than market
WE WILL DELIVER PROFITABLE GROWTH THROUGH FIVE STRATEGIC PILLARS OUTLINED IN OUR RECIPE FOR GROWTH WE EXPECT TO GROW 1.5X FASTER THAN THE TOTAL MARKET THROUGH OUR STRATEGIC PILLARS BY THE END OF FISCAL 2024 © Sysco 2021 | 25
Slide 26: Greg Bertrand, EVP, U.S. Foodservice Operations
GREG BERTRAND, EVP, U.S. FOODSERVICE OPERATIONS Key experience Greg began his Sysco career in 1991 and currently has leadership oversight responsibility for all of Sysco's U.S. broadline OpCos. His more than 25 years of experience includes a succession of senior foodservice operations positions such
Slide 27: Tim Ørting, EVP and President, Foodservice Operations, International
TIM ØRTING, EVP AND PRESIDENT, FOODSERVICE OPERATIONS, INTERNATIONAL Key experience Tim leads Sysco’s international operations in Canada, Europe, The Bahamas and Latin America, as well as the company’s International Food Group (IFG). He is an experienced food executive having led commercial and supp
Slide 28: Judy Sansone, EVP and Chief Commercial Officer
JUDY SANSONE, EVP AND CHIEF COMMERCIAL OFFICER Key experience Judy leads Sysco’s overall commercial strategies, including responsibility for merchandising, marketing, pricing, digital sales enablement, customer loyalty program development, customer personalization and exploring new channel sales dev
Slide 29: Marie Robinson, EVP and Chief Supply Chain Officer
MARIE ROBINSON, EVP AND CHIEF SUPPLY CHAIN OFFICER Key experience Prior to joining Sysco, Marie served as Senior Vice President, Chief Operations and Transformation Officer with Capri Holding Limited, the parent holding company of Michael Kors, Versace and Jimmy Choo and from 2014 to 2018 served as
Slide 30: Tom Peck, EVP, Chief Information and Digital Officer
TOM PECK, EVP, CHIEF INFORMATION AND DIGITAL OFFICER Key experience Tom Peck leads our Sysco Technologies organization. With more than 25 years of technology leadership experience, his background includes leading enterprise information technology strategy, services, operations, risk and cybersecurit
Slide 31: Neil Russell, SVP, Corporate Affairs and Chief Communications Officer
NEIL RUSSELL, SVP, CORPORATE AFFAIRS AND CHIEF COMMUNICATIONS OFFICER Key experience Neil is accountable for Sysco’s Communications, Corporate Social Responsibility (CSR), Government Relations and Investor Relations functions. He began his career in the airline industry doing strategic planning, rev
Slide 32: Ron Phillips, EVP and Chief Human Resources Officer
RON PHILLIPS, EVP AND CHIEF HUMAN RESOURCES OFFICER Key experience Ron is a proven HR executive with 25+ years of experience and a track record of leading high-performing teams and consistently delivering results and transformative change through people-first strategies. most recently served as Seni
Slide 33: Eve McFadden, SVP, Legal, General Counsel and Corporate Secretary
EVE MCFADDEN, SVP, LEGAL, GENERAL COUNSEL AND CORPORATE SECRETARY Key experience Eve leads Sysco’s Legal and Compliance functions and serves as the company’s Corporate Secretary. Eve joined Sysco in 2008 as Corporate Counsel-Employment and has taken on increasing areas of responsibility including th
Slide 34: Elizabeth Ubell, VP, Strategy and Analytics
ELIZABETH UBELL, VP, STRATEGY AND ANALYTICS Key experience Elizabeth leads Sysco’s strategy to help prioritize enriching customer experience and how we work together to achieve that strategy. Before joining Sysco in May 2018, she served as Vice President and President, Digital Commerce, Marketing &
Slide 35: Joel Grade, EVP, Business Development
JOEL GRADE, EVP, BUSINESS DEVELOPMENT Key experience Joel is responsible for organic and inorganic strategic growth opportunities. Prior to his current role, Joel has held a variety of senior finance and commercial roles at Sysco, most recently as Executive Vice President and Chief Financial Officer
Slide 36: Aaron Alt, EVP and Chief Financial Officer
AARON ALT, EVP AND CHIEF FINANCIAL OFFICER Key experience Prior to joining Sysco, Aaron served as Chief Financial Officer of NYSE-listed Sally Beauty Holdings (‘SBH’), a specialty retailer and wholesale distributor of professional beauty supplies in eleven countries, and as President of Sally Beauty
Slide 37: Long history of returning value to shareholders
WE HAVE A LONG HISTORY OF RETURNING VALUE TO SHAREHOLDERS Total Shareholder Return1 …while making investments in 14.3% the business 13.6% 13.8% 13.1% 11.6% 8.2% Sysco regularly returns more value to shareholders than peer companies.1 3-Year 5-Year 10-Year SYY S&P 500 CS Index 1Source: Bloomberg, TSR
Slide 38: Only Sysco can invest for both bounce-back and transformation
ONLY SYSCO CAN SIMULTANEOUSLY INVEST FOR BOTH BOUNCE-BACK AND TRANSFORMATION © Sysco 2021 | 38
Slide 40: Roadmap for the day
ROADMAP FOR THE DAY U.S. Foodservice International Foodservice Operations Operations Commercial Strategies Corporate Social Supply Chain Technology Responsibility Finance © Sysco 2021 | 40
Slide 42: U.S. Foodservice segment is the foundation of our business
OUR U.S. FOODSERVICE SEGMENT IS THE FOUNDATION OF OUR BUSINESS, WITH $40 BILLION ANNUAL REVENUE AND STRONG PROFIT MARGINS © Sysco 2021 | 42
Slide 43: Regionalization enables us to better serve our customers
SYSCO’S REGIONALIZATION ENABLES US TO BETTER SERVE OUR CUSTOMERS, INCREASE SPEED AND AGILITY, AND EXECUTE A CENTER-LED STRATEGY And is supported by our greatest strength: Our People The average tenure of our Market and Region leaders is over 20 years © Sysco 2021 | 43
Slide 44: Sales transformation provides a more customer-centric structure
OUR SALES TRANSFORMATION WILL PROVIDE AN IMPROVED, MORE CUSTOMER-CENTRIC STRUCTURE Data and Analytics Improved Sales Model and Cuisine Focused Driven Strategies Team-Based Selling Selling Customer Prospecting Compensation Alignment Food Expertise Share of Wallet Growth Business Developers Selling Ex
Slide 45: Gaining share by adding new independent customers
WE ARE GAINING SHARE BY ADDING NEW INDEPENDENT CUSTOMERS Independent Customer Count FY19 FY21 FY19 FY21 Restaurant Sysco Industry
Slide 46: Opportunity in the Italian segment; acquisition of Greco and Sons
SYSCO HAS THE OPPORTUNITY TO GROW BY $3B IN THE ITALIAN SEGMENT; TODAY WE ANNOUNCE THE ACQUISITION OF GRECO AND SONS TO BETTER SERVE THE CUSTOMER One of the largest Italian distributors in the U.S. Annual Sales of ~$800 million Access to exclusive product assortment and segment expertise Building Sy
Slide 48: Impressions after 100 days: exciting opportunities ahead
MY IMPRESSIONS AFTER 100 DAYS: EXCITING OPPORTUNITIES LIE AHEAD Transforming headwinds… …into tailwinds We have historically faced challenges in our Address past issues through robust European business and delivered plans, and turn International into a strong, unsatisfactory performance profitable g
Slide 49: Strong starting point with multiple market leading positions
WE HAVE A STRONG STARTING POINT WITH MULTIPLE MARKET LEADING POSITIONS Market position 20% of Sysco’s total revenue Canada #1 UK #1 9 France #3 countries of operations Sweden #2 Ireland #1 1 export entity (IFG) With additional presence in select markets Bahamas Costa Rica Panama Mexico $100 billion
Slide 50: We continue to strengthen our foundation
WE CONTINUE TO STRENGTHEN OUR FOUNDATION Our progress so far What we’ve achieved 1 Established the International leadership team Set up the International leadership team to provide critical capabilities to our markets and build on our position of strength Defined & initiated priority actions to inte
Slide 51: Big opportunities and clearly defined strategic initiatives
WE HAVE BIG OPPORTUNITIES AND HAVE CLEARLY DEFINED OUR STRATEGIC INITIATIVES 1 Win the snap-back 2 Win in the independent segment 3 Fill assortment gaps to grow market penetration and share-of-wallet 4 Expand geographically into underpenetrated regions 5 Invest in key channels like eCommerce and Cas
Slide 52: Strong foundations, exciting headroom and a clear path forward
WE HAVE STRONG FOUNDATIONS, EXCITING HEADROOM AND A CLEAR PATH FORWARD 1 2 3 We have a strong starting We operate in large, We have clearly defined a point despite the recent growing and attractive set of strategic initiatives challenges, with a solid markets and see a lot of to ensure we successful
Slide 54: Building a customer-focused personalization engine
SYSCO IS BUILDING A CUSTOMER-FOCUSED PERSONALIZATION ENGINE Digital First Modernizing the digital experience to make shopping easier Personalization Strategic targeting based on specific customer behaviors © Sysco 2021 | 54
Slide 55: Activating personalized experiences through multiple channels
WE WILL ACTIVATE PERSONALIZED EXPERIENCES THROUGH MULTIPLE CHANNELS Sysco Shop platform Sysco Sales will deliver: Consultants will • Targeted bundles receive: • Geographic local items • Real-time alerts • Promotional offers • Data-driven insights through email, text and Sysco Shop © Sysco 2021 | 55
Slide 56: Data-backed personalization will enable growth
OUR DATA-BACKED PERSONALIZATION WILL ENABLE GROWTH Personalization Example: Customer leaves item in cart Which will allow us to approach and better service our customers © Sysco 2021 | 56
Slide 57: Shop is one of America's largest e-commerce tools
SYSCO’S E-COMMERCE PLATFORM, SHOP, IS ONE OF AMERICA’S LARGEST E-COMMERCE TOOLS With 70% of our Independent customers in the U.S. using this platform With more than $29 billion in annualized sales © Sysco 2021 | 57
Slide 58: Pricing transformation benefits customers and sales consultants
SYSCO’S PRICING TRANSFORMATION HAS BENEFITS FOR BOTH CUSTOMERS AND SALES CONSULTANTS Customers Sales Consultants All customers see relevant pricing for Sales Consultants spend less hours per their entire catalog week pricing Customers can now directly influence Time is reinvested in activities where
Slide 59: Pricing customized at geographic, segment, and customer level
PRICING WILL BE CUSTOMIZED AT THE GEOGRAPHIC, SEGMENT, AND CUSTOMER-BEHAVIOR SPECIFIC LEVEL Current customer in-shop offer Personalized Pricing for customer in-shop offer Your Custom Price Pricing Example: Retail pricing tactics like “Buy More Save More” introduced to Foodservice customers © Sysco 2
Slide 60: Pricing customized at geographic, segment, and customer level
Personalized Pricing for customer in-shop offer Key Value Items PRICING WILL BE CUSTOMIZED AT Mexican Specialty Restaurant THE GEOGRAPHIC, SEGMENT, AND Key Item CUSTOMER-BEHAVIOR SPECIFIC LEVEL Mexican Specialty Restaurant Secondary Item © Sysco 2021 | 60
Slide 61: Brand portfolio delivers value in quality, variety and price
OUR BRAND PORTFOLIO DELIVERS SIGNIFICANT OVERALL VALUE IN QUALITY, VARIETY AND PRICE TO OUR CUSTOMERS …including four $1B brands …and four $500M brands © Sysco 2021 | 61
Slide 62: Key commercial initiatives that deliver the Recipe for Growth
3 KEY COMMERCIAL INITIATIVES THAT HELP DELIVER THE RECIPE FOR GROWTH Personalization E-Commerce Pricing With more than $29 billion in annualized sales © Sysco 2021 | 62
Slide 64: Supply chain transformation to increase efficiency and drive growth
SYSCO’S SUPPLY CHAIN TRANSFORMATION WILL INCREASE EFFICIENCY, IMPROVE THE DELIVERY EXPERIENCE FOR OUR CUSTOMERS AND BECOME A MECHANISM FOR GROWTH © Sysco 2021 | 64
Slide 65: Deliver the products customers need, when and how they need them
WE WILL DELIVER THE PRODUCTS OUR CUSTOMERS NEED, WHEN AND HOW THEY NEED THEM Our delivery windows Sysco Flex Our agile delivery model will align with the needs supporting will drive customer Customer of our customer’s delivery experience, including more Partnerships business, allowing them performan
Slide 66: Agile delivery model delivers a superior customer experience
OUR AGILE DELIVERY MODEL DELIVERS A SUPERIOR CUSTOMER EXPERIENCE We know our customers want… Sysco Flex will provide… • Delivery windows that align with • More frequent deliveries their business • No order minimums • Consistent delivery times to • Flexibility with delivery timing and days prep, staf
Slide 67: Omnichannel can provide the broadest assortment in the industry
SYSCO’S OMNICHANNEL CAN PROVIDE THE BROADEST ASSORTMENT IN THE INDUSTRY CURRENT STATE FUTURE STATE Raleigh Raleigh Charlotte Columbia Charlotte Columbia Region © Sysco 2021 | 67
Slide 68: Investments in facilities and equipment to deliver on growth
WE’RE MAKING INVESTMENTS IN FACILITIES AND EQUIPMENT TO DELIVER ON GROWTH Areas of higher growth Areas of lower growth We are using data-driven analytics to predict which geographies and customer segments will grow © Sysco 2021 | 68
Slide 70: Technology is a key enabler of our digital transformation
SYSCO’S TECHNOLOGY IS A KEY ENABLER OF OUR DIGITAL TRANSFORMATION We know that our customers want a more consumer-like experience Personalized experiences Best in class product assortment and availability Self-service … anytime, anywhere, any device © Sysco 2021 | 70
Slide 71: Bringing superpowers to our sales consultants
BRINGING SUPERPOWERS TO OUR SALES CONSULTANTS From manual preparation with limited insights and broad recommendations to … • Analytics-enabled account planning • Deep segment insights with performance tracking • Targeted product recommendations © Sysco 2021 | 71
Slide 72: Our technology leads with a consumer-first mindset
OUR TECHNOLOGY LEADS WITH A CONSUMER-FIRST MINDSET As the shopping behavior changes and the expectations increase, there is now more demand for an agile supply chain © Sysco 2021 | 72
Slide 73: Technology strategy built on a strong foundation
OUR TECHNOLOGY STRATEGY IS BUILT ON A STRONG FOUNDATION Delivered with speed With a focus on simplification and global adoption Data – Resilient Secure and And self-funded a more Infrastructure Compliant Intelligent Enterprise …and will enable a best-in-class digital experience for our customers © S
Slide 74: Technology foundation enabling profitable growth
OUR TECHNOLOGY FOUNDATION WILL PLAY AN EVEN GREATER ROLE IN ENABLING PROFITABLE GROWTH FOR SYSCO Best-in-industry customer-centric tools Customer-focused journey Modern, resilient, and flexible solutions © Sysco 2021 | 74
Slide 76: Corporate Social Responsibility at Sysco
CORPORATE SOCIAL RESPONSIBILITY AT SYSCO We are committed to (CSR) Caring for people Sourcing products responsibly Respecting the planet A Brakes U.K. associate delivering a food package as part of a Government scheme to ensure food continued to reach vulnerable people forced to shield across Englan
Slide 77: Today we will cover three key areas
TODAY WE WILL COVER THREE KEY AREAS: CSR Strategy Goals based on 3 Pillars: People, Product and Planet Some exciting new announcements about our focus going forward © Sysco 2021 | 77
Slide 79: Our CSR goals
OUR CSR GOALS For the full list of Sysco’s Goals and Programs, please see our latest Corporate Social Responsibility Report at Sysco.com/csr2020report © Sysco 2021 | 79
Slide 80: People
PEOPLE Diversity, Equity Sysco donated 50 million & Inclusion meals to community organizations in their efforts To further embed inclusiveness to address hunger and food in our culture, we hired Sysco’s insecurity during COVID-19. first Chief Diversity Officer and launched our Be Better Campaign. Gl
Slide 81: Products
PRODUCTS Animal Welfare Sysco is a major provider of animal protein products and animal welfare is an important Our Swedish material issue for our company Menigo suppliers, our customers and completed tracing the patrons they serve. 100 % Responsible Sourcing of its meat. Over 56% of their In late F
Slide 82: Planet
PLANET Sustainable Agriculture We deliver food across 625,000 customer locations globally Seven Sysco Canada There was ~20% reduction locations have from FY2019 to FY2020 on rail donated nearly boxcars, intermodal loads, fuel 200,000 pounds of and carbon emissions. food through FoodRescue.ca. These
Slide 83: Transitioning to renewable energy
TRANSITIONING TO RENEWABLE ENERGY 66k MWH of solar energy across our U.S. sites in 2020 Eight on-site solar installations © Sysco 2021 | 83
Slide 84: Leading the way with Sysco Brand
LEADING THE WAY WITH SYSCO BRAND Approximately 50% sales to local independent customers is Sysco Brand More than 50% of Sysco Brand cases sold are included in at least one responsible sourcing commitment 100% of Sysco Brand Local Case Sales give back to communities © Sysco 2021 | 84
Slide 85: Looking ahead
LOOKING AHEAD Replace with the correct Our goals and actions leaf image speak for themselves These commitments are real for Sysco We are committed to continuous improvement To learn more about Sysco’s 2025 initiatives, please visit Sysco.com/csr2020report
Slide 87: Market recovery impacts trajectory
MARKET RECOVERY IMPACTS TRAJECTORY Our businesses will recover at different rates U.S. Foodservice International SYGMA GWW 100 FY22 FY19 FY21 FY23 FY24 FY20 Index to FY19 Sales © Sysco 2021 | 87
Slide 88: Transformation drives organic growth, accelerating through the recovery
OUR TRANSFORMATION DRIVES ORGANIC GROWTH, ACCELERATING THROUGH THE RECOVERY Each element of our TRANSFORMATION receives investment and drives top-line profitable growth © Sysco 2021 | 88
Slide 89: Profitable sales growth is our north star
PROFITABLE SALES GROWTH IS OUR NORTH STAR Recovery Faster than Market 1.2x to 1.5x Market Growth © Sysco 2021 | 89
Slide 90: Starting point: profitability 2x industry average
STARTING POINT: PROFITABILITY 2X INDUSTRY AVERAGE 12-Month Adj. EBITDA Margin1 7.0% We have the size, 6.0% scale, and network 5.0% to accelerate 4.0% PROFITABLE GROWTH 3.0% 2.0% 1.0% 0.0% SYY - U.S. Foodservice Industry Average © Sysco 2021 | 90 1 As-of December 29, 2020
Slide 91: Feed the transformation; new goal $750M
FEED THE TRANSFORMATION; DRIVE THE GROWTH New Goal: $750M F Y 2 1 $ 3 5 0 M P LU S $ 4 0 0 M I N F Y 2 2 - 2 4 © Sysco 2021 | 91
Slide 92: FY22: while we recover, we transform
FY22: WHILE WE RECOVER, WE TRANSFORM EPS: Range of $3.23 - $3.43 for FY22 Businesses Recover at Different Rates – U.S. Foodservice and SYGMA Return to FY19 Sales Levels Transformation and Recovery Curve Investments Will Continue Gross Margins Approach FY19 Levels Operating Expense as a % of Sales Co
Slide 93: 2024: EPS will exceed pre-COVID all-time high
2024: EPS WILL EXCEED SYSCO PRE-COVID ALL-TIME HIGH EPS BY MORE THAN 30% • Accelerating Growth from Capability Transformation Drives the Recipe for Growth, by Putting Incremental Dollar Profit on the Table. • Continued progress against Cost-Out initiatives • Strong Cash Generation EPS growth does no
Slide 94: Balanced capital allocation strategy
SYSCO’S BALANCED CAPITAL ALLOCATION STRATEGY 1 Invest for Growth 2 Invest For Growth Maintain a Strong Balance Sheet 3 Shareholder Return © Sysco 2021 | 94
Slide 95: Investing to transform and grow
WE ARE INVESTING TO TRANSFORM & GROW $2.6B of capital over the next three years. Technology Fleet Buildings © Sysco 2021 | 95
Slide 96: Annual capital investments FY17-24
WE ARE INVESTING TO TRANSFORM & GROW $2.6B of capital over the next three years. ANNUAL CAPITAL INVESTMENTS FY17-24 1.4% 1.4% 1.4% 1.3% 1.2% 1.2% 1.2% 0.7% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 © Sysco 2021 | 96
Slide 97: Assuming tuck-in acquisitions
WE ARE ASSUMING TUCK-IN ACQUISITIONS • Focus on Broadline, Specialty and Cuisine-type Opportunities in Underpenetrated Markets • Capability Adds and New Platforms • Prioritization of Acquisition Opportunities in the US, UK and Canada • Internal Models Assume Acquisitions Provide ~0.5% to 1% of Sales
Slide 98: We have a strong balance sheet
WE HAVE A STRONG BALANCE SHEET Investment Grade Rating Supports Our Liquidity & Investment Profile Baa1 BBB- BBB © Sysco 2021 | 98
Slide 99: Adjusting our targeted leverage
WE ARE ADJUSTING OUR TARGETED LEVERAGE Goal Supports a Strong Investment Grade Rating 2.5 – 2.75x Net Debt / Adj. EBITDA 1 © Sysco 2021 | 99 1 In arriving at Adjusted EBITDA, Sysco does not adjust out interest income or non-cash stock compensation expense. Definition of Net Debt excludes Capital Lea
Slide 100: We have deleveraged our balance sheet
WE HAVE DELEVERAGED OUR BALANCE SHEET Actions Already Taken in FY21 1 $750M Paydown in Q1 FY21 2 $700M Paydown of Credit Facility 3 March Repayment of £300M UK Commercial Paper Program 4 April Repayment of £200M UK Commercial Paper Program 5 May Repayment of £100M UK Commercial Paper Program $2.3B o
Slide 101: We will further deleverage our balance sheet
WE WILL FURTHER DELEVERAGE OUR BALANCE SHEET Commitment to $1.5 Billion of Further Debt Reduction in FY21 and FY22 Actions Coming: 1 1 $750M Tender Offer To Be Launched in Q4 2 June 2021 Repayment of $500M Note due July 2021 3 June 2022 Repayment of $450M of Notes due July 2022 © Sysco 2021 | 101 1
Slide 102: Moving toward our targeted leverage
WE ARE MOVING TOWARD OUR TARGETED LEVERAGE Q3 FY21 Actual Q4 FY21 Forecast 5.1x 3.5x Goal: 2.5 – 2.75x Net Debt / Adj. EBITDA1 © Sysco 2021 | 102 1 In arriving at Adjusted EBITDA, Sysco does not adjust out interest income or non-cash stock compensation expense. Definition of Net Debt excludes Capita
Slide 103: Priority on returning value to shareholders
SYSCO PLACES A PRIORITY ON RETURNING VALUE TO SHAREHOLDERS • 14% 5-Year TSR • $11.8B of Total Value Returned From FY15- FY21 © Sysco 2021 | 103
Slide 104: Dividend aristocrat
WE ARE A DIVIDEND ARISTOCRAT: WE CONSISTENTLY RETURN CAPITAL TO SHAREHOLDERS THROUGH DIVIDENDS $1.80 $1.56 $1.44 $1.32 $1.24 51 Years of Dividend Increases 1 CY2016 CY2017 CY2018 CY2019 CY2020 © Sysco 2021 | 104 1Source: Bloomberg, Company Financials
Slide 105: Today we are increasing our dividend
TODAY WE ARE INCREASING OUR DIVIDEND 2 Cent Increase of Dividend / Share each Quarter1 $1.84 $1.88 $1.80 $1.56 $1.44 $1.32 $1.24 CY2016 CY2017 CY2018 CY2019 CY2020 CY2021 CY2022 © Sysco 2021 | 105 1The FY22 impact from this dividend increase will be $0.08
Slide 106: New $5B share repurchase authorization
NEW $5B SHARE REPURCHASE AUTHORIZATION $0.8B Conditions to Future Share Repurchase 2020 • Market Recovery is Robust $1.9B 2016 • Investments in the Business are Fully $1.0B $6.6B Funded (including M&A) 2019 • Debt Reductions Continue and of share repurchases Investment Grade Rating is Preserved in t
Slide 109: 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 110: Sales, gross margin, operating expense and EPS targets
SALES GROSS MARGIN, OPERATING EXPENSE AND EPS TARGETS We expect to achieve our sales, gross margin, operating expense and earnings per share targets by fiscal 2022 and fiscal 2024. We cannot predict with certainty when we will achieve these results or whether the calculation of our sales, gross marg
Slide 111: EBITDA
EBITDA Sysco Corporation and its Consolidated Subsidiaries U.S. Foodservice Operations Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) Margin (In Thousands) EBITDA represents net earnings (loss) plus (i) interest
Slide 112: Net debt to adjusted EBITDA leverage ratio targets
NET DEBT TO ADJUSTED EBITDA LEVERAGE RATIO TARGETS We expect to achieve our net debt to adjusted EBITDA leverage ratio forecasts in the fourth quarter of fiscal 2021 and the fourth quarter of fiscal 2022. We cannot predict with certainty when we will achieve these results or whether the calculation
Slide 113: Net debt to adjusted EBITDA leverage ratio
NET DEBT TO ADJUSTED EBITDA LEVERAGE RATIO Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Net Debt to Adjusted EBITDA Leverage Ratio (In Thousands) We calculate the net debt to adjusted EBITDA leverage ratio as (i) total debt, computed as the sum of notes pay

Sysco — Investor Day (May 2021) on 6ix

Sysco — Investor Day (May 2021)

Slide 1: Sysco Investor Day

Slide 2: Neil Russell

Slide 3: Forward Looking Statements

Slide 4: Q&A

Slide 5: Kevin Hourican, President and Chief Executive Officer

Slide 6: Kevin Hourican

Slide 7: Our presentation today will include three important topics

Slide 8: Sysco is accelerating its global leadership position

Slide 9: Diversified customer base and large food-away-from-home market

Slide 10: The pace of recovery will be different for each segment

Slide 11: Our global footprint creates a unique opportunity for growth

Slide 12: Accelerating our international strategic initiatives

Slide 13: Scale and unique capabilities enable growth in a fragmented industry

Slide 14: We've won $1.8B of net new business with national brands

Slide 15: Sysco is building a purpose-driven organization

Slide 16: Our unifying framework roots us in purpose, mission and values

Slide 17: Our recipe for growth

Slide 18: Profitable growth through five strategic pillars

Slide 19: Digital

Slide 20: Products

Slide 21: Solutions

Slide 22: Supply chain

Slide 23: Customer teams

Slide 24: Future horizons

Slide 25: Profitable growth through five strategic pillars, 1.5x faster than market

Slide 26: Greg Bertrand, EVP, U.S. Foodservice Operations

Slide 27: Tim Ørting, EVP and President, Foodservice Operations, International

Slide 28: Judy Sansone, EVP and Chief Commercial Officer

Slide 29: Marie Robinson, EVP and Chief Supply Chain Officer

Slide 30: Tom Peck, EVP, Chief Information and Digital Officer

Slide 31: Neil Russell, SVP, Corporate Affairs and Chief Communications Officer

Slide 32: Ron Phillips, EVP and Chief Human Resources Officer

Slide 33: Eve McFadden, SVP, Legal, General Counsel and Corporate Secretary

Slide 34: Elizabeth Ubell, VP, Strategy and Analytics

Slide 35: Joel Grade, EVP, Business Development

Slide 36: Aaron Alt, EVP and Chief Financial Officer

Slide 37: Long history of returning value to shareholders

Slide 38: Only Sysco can invest for both bounce-back and transformation

Slide 39: Aaron Alt

Slide 40: Roadmap for the day

Slide 41: Greg Bertrand

Slide 42: U.S. Foodservice segment is the foundation of our business

Slide 43: Regionalization enables us to better serve our customers

Slide 44: Sales transformation provides a more customer-centric structure

Slide 45: Gaining share by adding new independent customers

Slide 46: Opportunity in the Italian segment; acquisition of Greco and Sons

Slide 47: Tim Ørting

Slide 48: Impressions after 100 days: exciting opportunities ahead

Slide 49: Strong starting point with multiple market leading positions

Slide 50: We continue to strengthen our foundation

Slide 51: Big opportunities and clearly defined strategic initiatives

Slide 52: Strong foundations, exciting headroom and a clear path forward

Slide 53: Judy Sansone

Slide 54: Building a customer-focused personalization engine

Slide 55: Activating personalized experiences through multiple channels

Slide 56: Data-backed personalization will enable growth

Slide 57: Shop is one of America's largest e-commerce tools

Slide 58: Pricing transformation benefits customers and sales consultants

Slide 59: Pricing customized at geographic, segment, and customer level

Slide 60: Pricing customized at geographic, segment, and customer level

Slide 61: Brand portfolio delivers value in quality, variety and price

Slide 62: Key commercial initiatives that deliver the Recipe for Growth

Slide 63: Marie Robinson

Slide 64: Supply chain transformation to increase efficiency and drive growth

Slide 65: Deliver the products customers need, when and how they need them

Slide 66: Agile delivery model delivers a superior customer experience

Slide 67: Omnichannel can provide the broadest assortment in the industry

Slide 68: Investments in facilities and equipment to deliver on growth

Slide 69: Tom Peck

Slide 70: Technology is a key enabler of our digital transformation

Slide 71: Bringing superpowers to our sales consultants

Slide 72: Our technology leads with a consumer-first mindset

Slide 73: Technology strategy built on a strong foundation

Slide 74: Technology foundation enabling profitable growth

Slide 75: Neil Russell

Slide 76: Corporate Social Responsibility at Sysco

Slide 77: Today we will cover three key areas

Slide 78: Our priorities: People, Products, Planet

Slide 79: Our CSR goals