Sysco Corporation · NYSE:SYY
Sysco — Proxy Contest (October 2019)
18 slides from Sysco's proxy contest presentation, Oct 28, 2019
Slide 1: Sysco Stockholder Update | Fall 2019
Sysco Stockholder Update| Fall 2019
Slide 2: 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 3: Global leader in foodservice distribution
Global leader in foodservice distribution Core market, driving 68.7% of sales U.S. broadline delivers a comprehensive offering to a wide base of customers; specialty companies further enhance our portfolio of products U.S. Foodservice Operations (68.7% of sales) Customized distribution services, pri
Slide 4: Three-year strategic plan delivers targeted financial results
Cases 2.5% - 3.0% Local:+3.0%-3.3% Sales 3.5% - 4.0% Gross Profit 3.5% - 4.0% Operating Income ~8% $600M1 EPS ~15% Our three-year strategic plan (2018-2020) delivers targeted financial results 1 See Non-GAAP reconciliations at the end of this presentation. FY 2018-20201 Three-Year Plan Growth Target
Slide 5: Operating performance driving sustained, profitable growth
Sales $60.1B Gross Profit $11.4B GAAP Non-GAAP1 Operating Income $2.3B $2.7B EPS $3.20 $3.55 Operating Performance Driving sustained, profitable growth 1 See Non-GAAP reconciliations at the end of the presentation. 2 Three-year TSR as of 16-Oct-19. Operating Success Clearly Demonstrated in Improved
Slide 6: Disciplined approach to capital allocation and a balanced portfolio
disciplined approach to capital allocation and A balanced Portfolio Drive long-term, sustainable growth Board oversight of Sysco’s strategy ensures sustainable growth and maximization of stockholder value over the long-term 1 Invest in the business $1.3B net capital expenditures 2 Grow the dividend
Slide 7: Independent Lead Director and CEO & Chairman
Ed Shirley – Independent Lead Director Former President & CEO of Bacardi Limited and former Vice Chairman of Global Beauty and Grooming, a business unit of Procter & Gamble, providing valuable consumer staples, executive management, and global operations insights Significant experience with leadersh
Slide 8: Strong independent Lead Director role
Strong independent Lead Director Role The Lead Director is appointed by our independent directors and is assigned clearly delineated duties and responsibilities, positioning the Board to better serve the long-term interests of stockholders Serves as primary liaison between the independent directors
Slide 9: Regular board evaluations strengthen board effectiveness
Regular board evaluations strengthen board effectiveness Independent Board oversight is a high priority for Sysco, and our governance provisions and annual Board evaluation process are key to ensuring our Board is best serving our shareholders In addition to our strong Lead Director role, the Board
Slide 10: Engaged, diverse and refreshed board oversees strategy and governance
Engaged, diverse and refreshed board oversees sysco strategy and governance Adopted a Board refreshment plan in 2016, under which we: Established a 15-year limit on director tenure to facilitate the refreshment plan Elected five new independent directors – Ms. Talton and Messrs. Brutto, Hinshaw, Hal
Slide 11: 2019 Executive Compensation Overview
2019 Executive compensation Overview Component Detail FY19 Rationale Base Salary Generally targeted at or below peer group median Remain attractive and competitive in market MIP Annual Incentive Award1 50% weighting for operating income performance 25% weighting for the gross profit dollar growth an
Slide 12: 2025 CSR Goals aligned with core priorities
2025 CSR Goals are aligned with Sysco's CORE PRIORITIES The Board’s Corporate Social Responsibility Committee conducted a robust materiality assessment to ensure we unlock the power of our associates, increase operational sustainability and meet consumers’ expectations regarding food source and qual
Slide 13: Prioritizing sound corporate governance
Prioritizing sound corporate governance Over the past four years, we have expanded our engagement efforts, gaining valuable feedback on our corporate governance, executive compensation and sustainability practices In FY19, the Chair of our Corporate Governance and Nominating Committee, and our Indep
Slide 14: Non-GAAP Reconciliations
Non-gaap reconciliations
Slide 15: Impact of certain items
Impact of certain items Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items Our discussion below and elsewhere herein of our results includes certain non-GAAP financial measures that we believe provide important perspective with respect to
Slide 16: Operating income target
OPERATING INCOME TARGET We expect to achieve our gross profit, operating income and earnings per share targets under our 3-year strategic plan by fiscal 2020. We cannot predict with certainty when we will achieve these results or whether the calculation of our gross profit, operating income and/or e
Slide 17: Impact of certain items, FY19
Impact of certain items, FY19
Slide 18: Impact of certain items, FY19 (continued)
Impact of certain items, FY19 (continued)