Sysco Corporation · NYSE:SYY
Sysco — ICR Conference 2019
18 slides from Sysco's conference presentation, Jan 14, 2019
Slide 1: ICR | January 14, 2019
ICR| January 14, 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: Tom Bené, Chairman, President & CEO
TOM BENÉ CHAIRMAN, PRESIDENT & CEO
Slide 4: Our Strategic Priorities Help Us Carry Our Vision and Values Forward
OUR STRATEGIC PRIORITIES HELP US CARRY OUR VISION AND VALUES FORWARD FOR DISCIPLINED, PROFITABLE GROWTH 4
Slide 5: Broader Economic and Industry Trends Impact Our Operating Environment
BROADER ECONOMIC AND INDUSTRY TRENDS IMPACT OUR OPERATING ENVIRONMENT Consumer Despite recent financial market volatility, U.S. consumer confidence Confidence has been high, which has driven healthy consumer spending Although some are predicting slowed future growth, there are still Consumer positiv
Slide 6: Three-Year Plan Financial Objectives
THREE-YEAR PLAN FINANCIAL OBJECTIVES Investor Day – December 7, 2017 FY 2018-20201 3-year plan Last December, we committed to an operating income growth target of $650-700M. Although we may get there in a slightly different way… …we are confident we will reach this target. 1 See Non-GAAP recon
Slide 7: U.S. Case Volume Will Soften in Year-Over-Year Growth
U.S. CASE VOLUME WILL SOFTEN IN YEAR-OVER-YEAR GROWTH SUMMARY Due to the annualization of two Due to the annualization of the large national accounts HFM and Doerle acquisitions customers1 1 Added in the prior year 7
Slide 8: Recent Operating Expense Challenges Are Being Managed
RECENT OPERATING EXPENSE CHALLENGES ARE BEING MANAGED Tight labor market Ongoing challenges in the warehouse and transportation areas of our supply chain … Expect to see compression on operating leverage gap for the near term 8
Slide 9: CEO Summary
CEO SUMMARY SUMMARY With respect to our operating leverage gap, we expect to see both gross profit growth and operating expense growth reduced. For 3-year plan operating income target, we expect to see more benefit from the reduction of administrative costs than previously outlined. Our overal
Slide 10: Joel Grade, EVP & CFO
JOEL GRADE EVP & CFO
Slide 11: Pulling Forward Cost Improvement Initiatives to Drive Operating Income Growth
WE ARE PULLING FORWARD COST IMPROVEMENT INITIATIVES AND IMPLEMENTING ADDITIONAL ACTIONS TO DRIVE OPERATING INCOME GROWTH Finance This initiative increases centralization and standardization of our end- Transformation to-end global processes and workflow and utilizes digital automation Roadmap on a m
Slide 12: Financial Updates
FINANCIAL UPDATES SUMMARY FY19 EPS Impacted By: Higher interest expense than prior year Fewer stock option exercises than prior year Increase in “other expenses” related to pension and post-retirement benefits New tax rate. We expect our effective on-going tax rate for FY19 to be 25%; prior
Slide 13: 1Q19 Cash Flow
1Q19 CASH FLOW 1 1 1Q18 1Q19 Cash from Ops $82.7M $271.1M $188.4M Free Cash Flow -$51.7M $170.7 $222.4M Driven by improved working capital performance 1 See Non-GAAP reconciliations at the end of the presentation. 13
Slide 14: Summary
SUMMARY SUMMARY Continued work to do to manage overall costs, drive the gap between gross profit dollars and operating expenses and achieve the full financial objectives of our three-year plan. Committed to serving our customers and executing on a high level to continue to improve our financial
Slide 15: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS
Slide 16: Free Cash Flow
FREE CASH FLOW Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) 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 equipment. Sy
Slide 17: Adjusted Sales, Gross Profit, Operating Expense, Operating Income and EPS Targets
ADJUSTED SALES, GROSS PROFIT, OPERATING EXPENSE, OPERATING INCOME AND EARNINGS PER SHARE TARGETS Sales, Gross Profit, Operating Expense, Operating Income and Earnings per Share Targets We expect to achieve our sales, gross profit, operating expense, operating income and earnings per share (EPS) targ
Slide 18: Follow me-to-4
Follow me-to-4 yourinext greatimeal.