Aramark · NYSE:ARMK
Aramark — Investor Day (May 2005)
22 slides from Aramark's investor day presentation, May 18, 2005
Slide 1: Thomas Vozzo, President, Uniform and Career Apparel
Thomas Vozzo President ARAMARK UNIFORM AND CAREER APPAREL (AUCA)
Slide 2: AUCA Model
AUCA Model Workwear, Image Apparel Mass Personalization / Design Managed Account Programs Quick Service Restaurant Leader Healthcare Uniform Rental / Lease/ Direct Purchase Dust Control Clean Room Nationwide Network Public Safety Equipment / Supplies Apparel Accessories Managed Account Programs Sour
Slide 3: Active Customers
Active Customers Over 800,000 Active Business Customers 170,000 300,000 * Year end 2004 350,000 WearGuard Galls Rental
Slide 4: Investor Day 2005: Nationwide Service Network
Investor Day 2005 Nationwide Service Network
Slide 5: Financial Overview: Sales & Operating Income
Financial Overview Sales & Operating Income 2004 Sales: $1.5 billion 30% 70% Operating Income: $136 million 15% 85% Rental Direct Marketing
Slide 6: Size of Opportunity
Size of Opportunity Current $12-13 Billion Potential $30 Billion Uniform Rental Uniform Sales Ancillary Services Uniform Rental Uniform Sales Ancillary Services Source: Analyst reports
Slide 7: Addressing Customer Needs
Addressing Customer Needs Customer Requirements: The “right” program for each customer Reliable service delivery Excellent customer service Good value Key ARAMARK Capabilities: Product Authority Service Excellence Education and Healthcare
Slide 8: Delivering Product Authority
Delivering Product Authority Over 150,000 SKUs in stock Apparel for all professions Best product guarantee 500+ new products/year
Slide 9: Delivering Product Authority
Delivering Product Authority
Slide 10: Delivering Service Excellence
Delivering Service Excellence Highly reliable rental delivery network Nationwide consistent service standards Extensive personalization capability World class direct sale fulfillment
Slide 11: Service Excellence: Customer Satisfaction and Retention
Delivering Service Excellence Rental Customer Satisfaction Measurement Independent research firm 67,000 surveys per year All national account locations Customer Retention 94% 93% 92% 91% 90% 92% 92% 93% FY02 FY03 FY04
Slide 12: Service Excellence: Qualifying Criteria
Delivering Service Excellence Qualifying Criteria Minimum 95% retention “Top 10%” route sales performance – Abide by ARAMARK’s Mission Statement and Guiding Principles YTD results up significantly
Slide 13: Service Excellence: Direct Sale
Delivering Service Excellence Direct Sale 95% orders shipped same day 100% satisfaction guarantee Pack-by-wearer service Teams assigned to specific customers On-time Delivery vs. Promise 95% 95% 94% 94% 93% 93% 92% 93% 94% 95% 2003 2004 2005
Slide 14: National Coverage of Distribution Centers
Delivering Service Excellence National Coverage of Distribution Centers = Reno, NV = Salem, VA = Lexington, KY = Lawrenceville = Hanover, MA = Norwell, MA = Decatur, IL
Slide 15: Value Creation: Transforming the Business
Value Creation – Transforming the Business Sales Excellence Margin Expansion
Slide 16: Sales Excellence—Rental
Sales Excellence—Rental Shift to a Sales Driven Organization 30% increase in headcount 20% increase in productivity Programs launched to improve hiring, on-boarding, training and retention Improved sales tools Rewards and recognition programs Sales as a career path Organic Growth % 5 4 3 2 1 0 0% 0%
Slide 17: Focus on Growing Sectors
Focus on Growing Sectors Specialty Sector Growth Program Development Dedicated marketing resources Specialized sales approach Targeted communication programs Key Sectors Flame Resistant Cleanroom Automotive Law Enforcement Agencies Healthcare Quick Service Restaurants
Slide 18: Drivers of Margin Expansion
Drivers of Margin Expansion Merchandise Higher utilization of self-manufactured garments Worldwide sourcing to lower product cost Plant and Operations Automation of plants to reduce labor costs Improved utility utilization Delivery and Distribution Route optimization to reduce hours and fuel consump
Slide 19: Margin Expansion—Customer Connect
Margin Expansion –Customer Connect
Slide 20: Margin Expansion—Customer Connect
Margin Expansion –Customer Connect Handheld Route Accounting Shared Services Benefits Eliminates paperwork/saves route time Eliminates order entry errors Centralized pricing application One database – all businesses Regional, multi-location, and national accounts support enhanced Central billing fun
Slide 21: Business, Sports and Entertainment
Business, Sports and Entertainment
Slide 22: Questions and Answers
Questions and Answers ole hi