SlideShare a Scribd company logo
1 of 46
Download to read offline
CAGNY
2023
February 21, 2023
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 under the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements reflect the views of management at the time such statements are made and are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual results to differ
materially from current expectations. These statements include statements concerning: the effect, impact, potential duration or other implications of the COVID-19 pandemic and any expectations we may have with respect
thereto; our expectations regarding future improvements in productivity; our belief that improvements in our organizational capabilities will deliver compelling outcomes in future periods; our expectations regarding
improvements in international volume; our expectations that our transformational agenda will drive long-term growth; our expectations regarding the continuation of an inflationary environment; our expectations regarding
improvements in the efficiency of our supply chain; our expectations regarding the impact of our Recipe for Growth strategy and the pace of progress in implementing the initiatives under that strategy; our expectations
regarding Sysco’s ability to outperform the market in future periods; our expectations that our strategic priorities will enable us to grow faster than the market; our expectations regarding our efforts to reduce overtime rates
and the incremental investments in hiring; our expectations regarding the expansion of our driver academy and our belief that the academy will enable us to provide upward career path mobility for our warehouse colleagues
and improve colleague retention; our expectations regarding the benefits of the six-day delivery and last mile distribution models; our plans to improve the capabilities of our sales team; our expectations regarding the impact
of our growth initiatives and their ability to enable Sysco to consistently outperform the market; our expectations regarding the impact of the Concord Foods acquisition on our business; our expectations regarding our ability to
grow faster than the total market in fiscal 2023 and to exceed our growth target by the end of fiscal 2024; our ability to deliver against our strategic priorities; economic trends in the United States and abroad; our belief
that there is further opportunity for profit in the future; our future growth, including growth in sales and earnings per share; our expectations regarding profits and sales in fiscal 2023; the pace of implementation of
our business transformation initiatives; our expectations regarding our balanced approach to capital allocation and rewarding our shareholders; our plans to improve colleague retention, training and
productivity; our belief that our Recipe for Growth transformation is creating capabilities that will help us profitably grow for the long term; our expectations regarding our long-term financial
outlook; our expectations of the effects labor harmony will have on sales and case volume, as well as mitigation expenses; our expectations for customer acquisition in the local/street
space; our expectations regarding the effectiveness of our GSC expense control measures; our expectations regarding the growth and resilience of our Food Away From Home
market; and our expectations regarding additional improvements from snap-back costs and productivity expenses during the fiscal third quarter.
It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those
outside of Sysco’s control. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see our Annual Report on
Form 10-K for the year ended July 2, 2022, as filed with the SEC, and our subsequent filings with the SEC. We do not undertake to update our forward-looking
statements, except as required by applicable law.
2
KEVIN HOURICAN
President & CEO
F o o d S u p p l y C h a i n F o o d S a l e s & M a r k e t i n g
Sysco is the Backbone of the Food Away
From Home Industry and Accelerating Growth
FY2022 Total Sysco Sales
7%
Travel and
Leisure
63%
Restaurants
8%
Healthcare
14%
Other
8%
Education
And
Government
$68.6B
In Annual Sales
~700K
Customer Locations
7,500+
Sales Consultants
71K+
Colleagues Across
the Globe
IFG
Operations
Food Away From Home Continues to Gain Share
30%
35%
40%
45%
50%
55%
60%
65%
70%
Jan-93
Jan-94
Jan-95
Jan-96
Jan-97
Jan-98
Jan-99
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Jan-21
Jan-22
Jan-23
Percentage of Combined Monthly Sales (1993 - 2023)
Grocery Stores Food Services and Drinking Places
40%
45%
50%
55%
60%
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Percentage of Combined Monthly Sales (2020 - 2023)
Grocery Stores Food Services and Drinking Places
Sysco is the Industry Leader with
Breadth, Depth, Scale, and Reach
Restaurants Recreation Lodging Catering & Events
Sports &
Entertainment
Retail Travel & Leisure
Healthcare &
Senior Living
Education Government
7
Sysco Leads in Local & Specialty
Sysco Brand Products Generate Over $18 Billion in Sales1
To put it in perspective…
$7.1B sales
FY2022
$15.3B sales
FY2022 ~$5B
~$1B
~$500M
And we have 11 brands >$500M
$10.4B sales
FY2022
$5.4B sales
FY2022
Nearly Half of Local Cases Driven by Sysco Brand1
1 Fiscal Year 2022 financials
Sysco is Winning with
National Customers
Sysco Brand
Specialty Products
Margin Optimization
National Scale
Fulfillment Strength
Targeted Sales
Expertise
GROWTH DRIVERS MARGIN DRIVERS
Healthcare
Education
Restaurants
Sysco is Winning in the Marketplace
Sysco has Outperformed the Total Foodservice Market
100 index
Q1'FY21 Q2'FY21 Q3'FY21 Q4'FY21 Q1'FY22 Q2'FY22 Q3'FY22 Q4'FY22 Q1'FY23 Q2'FY23
US Foodservice Operations Revenue Indexed to 2019 vs Technomic Market Estimated Indexed to 2019
Sysco US Ops Total Market excl SYY
11
Source: Sysco U.S. Operations Revenue as of Q2 FY23 close; Technomic Custom Wall Chart Market & Inflation Oct ‘22
Our Recipe for Growth
DIGITAL
Enrich the customer experience through personalized digital tools that reduce friction in
the purchase experience and introduce innovation to our customers
PRODUCTS AND SOLUTIONS
Customer focused marketing and merchandising solutions that inspire increased sales of
our broad assortment of fair priced products and services
SUPPLY CHAIN
Efficiently and consistently serve customers with the products they need, when and
how they need them, through a flexible delivery framework
FUTURE HORIZON
We are committed to responsible growth. We will cultivate new channels, segments and
capabilities while being stewards of our company and our planet for the long-term. We
will fund our journey through cost-out and efficiency improvements
CUSTOMER TEAMS
Our greatest strength is our people. People who are passionate about food and food
service. Our diverse team delivers expertise and differentiated services designed to help
our customers grow their business
IDENTITY | Our Role
Together we define the future of
foodservice and supply chain
MISSION | Our What
Delivering success for our
customers through industry-leading
people, products and solutions
PURPOSE | Our Why
Connecting the World to
Share Food and Care for One
Another
STRATEGY | How We Win - We will grow meaningfully faster than the market through our strategic priorities
Sysco Is a Purpose-Driven Organization, Defining the Future of Our Industry
12
Digital
eCommerce
Pricing
Digital Sales
Activation
Personalization
Products & Solutions
Strategic
Sourcing
Growth Cuisine
Segments
(Italian, Asian)
Sysco
Brands
Perks!
Supply Chain
Omnichannel
Performance
Culture
Routing &
Transportation
Optimization
Driver &
Selector
Academies
Customer Teams
Sysco Your
Way
Product
Specialists
Team Selling
Future Horizons
M&A
Sustainability
Structural
Cost-Out
Neil Russell
Senior Vice President - Corporate Affairs and Interim CFO
1H 2023 Consolidated Financial Results
$1.5
$1.7
Adj. EBITDA1
(billions)
$32.8
$37.7
Net Sales
(billions)
$1.40
$1.76
Adj. EPS1
1H 2022 1H 2023
Overview
? Sales increased 15.1% versus the
prior year
? Gross margin increased 24 basis
points to 18.1%
? Adjusted EBITDA and adjusted EPS
grew 14.7% and 25.7%, respectively
? Food product inflation moderated
during 1H 2023
1H 2022 1H 2023
1H 2023 GAAP Operating Income
+27.7% to $1.4 billion
1H 2022 1H 2023
20
1 See Non-GAAP reconciliations at the end of the presentation.
Operating Cost Improvements;
Reduced Snap-Back and Productivity Costs
Overview
? $60M of operating expense reductions
within the last two quarters
? Continue to invest in transformation
efforts
? Snap-back costs eliminated during
second quarter of FY23
? Productivity costs reduced by ~50%
during second quarter of FY23
$67 M
$41 M
$29 M
Q4 2022
$63 M
$41 M
$10 M
Q1 2023
$55 M
$22 M
Q2 2023
Snap-Back Costs Productivity Costs Transformation Investments
21
Driving Efficiencies with Structural Cost-Out
Achieved:
$750M
? Incremental Cost-Out Expected for FY23 and Beyond
? Cost-Out Included in FY23 Adjusted EPS Growth Assumptions
Historical FY Adjusted EPS Performance
$1.84
$2.10
$2.48
$3.14
$3.55
$2.01
$1.44
$3.25
$4.07 1
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023E
Mid-Point
FY Guidance +25% Growth1
23
1Midpoint of FY 2023 adjusted EPS guidance of $4.00-$4.15.
See Non-GAAP reconciliations at the end of the presentation.
Capital Structure and Allocation
1
2
3
24
Investment Priority Progress
Invest for Growth
? Continued capital investments in our technology, fleet and buildings
? Strong pipeline of tuck-in acquisitions focused on Broadline, Specialty and Cuisine-type opportunities as well as
underpenetrated markets in the U.S., U.K. and Canada
Maintain a Strong
Balance Sheet
? Maintaining a strong IG rating
? Targeting a net debt to EBITDA1 ratio of 2.5x-2.75x
? Ended Q2 with a net debt to adjusted EBITDA1 ratio of 3.0x
? Well positioned in current rate environment as approximately 95% of debt is fixed rate
Shareholder Return
? During the second quarter, the Company returned $249 million to shareholders via dividend payments
? Cumulatively returned approximately $14.3 billion to shareholders since fiscal 2015
1 See Non-GAAP reconciliations at the end of the presentation.
Disciplined Investments to Support Growth
7 new buildings underway to deliver new capacity in high-potential markets and cuisine segments
25
Sysco has Consistently Increased
Returns to Shareholders
$0.7 B
$3.3 B
$5.9 B
$7.6 B
$9.4 B
$11.1 B
$12.0 B
$13.5 B
$14.3 B
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
(Q2 YTD)
Cumulative Cash Returned to Shareholders
Dividends Shares Repurchased
Over $14 Billion of Cash Returned to Shareholders Through Q2 2023
26
Key Characteristics of Dividend
Aristocrats1
? Part of the S&P 500
? Dividend growth for a minimum
of 25 consecutive years
? Consistent cash flows to weather
economic fluctuations
? Strong history of returning cash
back to shareholders through
dividends and share repurchases
Sysco is a Dividend Aristocrat,
Growing Dividend for 53+ Years
1 Dividend Aristocrats are part of the S&P 500 and have increased their dividends for a minimum of 25 consecutive years
Only 64 companies total, and 14 consumer staple companies hold the title to being a dividend aristocrat as of 12.31.22
Sustainability
Our Approach to Sustainability
? Philanthropy & Community Giving
? Diversity, Equity & Inclusion
? Health & Wellness
PEOPLE
PLANET
? Sustainable Agriculture
? Energy & Carbon
? Waste Reduction
PRODUCTS
? Responsible Sourcing
? Human Rights
? Animal Welfare
30
Climate Action Supports Customers and Drives
Progress in the Supply Chain
Customers
Suppliers
Customers ask Sysco to provide climate data and set reduction targets to maintain relationships.
Prospective customers are increasingly looking to distributor partners who have climate goals.
31
We are Making Real Progress with
Our Climate Commitments
Installed a solar panel
system to meet 15%
of energy needs of our
British business
April 2022 July 2022 November 2022
Delivery of the first
electric Class 8 tractor
in Riverside, CA
Created first
Southern
Plains Grassland
Program, providing
support to 10
rancher-led
sustainable grazing
projects
32
2030
Reduce Sysco’s Global
Direct Emissions
27.5% by 20301
1 Scope 1 & 2
We Aspire to Create a Global Culture that is Decidedly
Diverse, Equitable and Inclusive
Achieved 62% gender and ethnic
diversity for U.S.-based colleagues in FY22.
First Supplier Diversity Summit
Gathered ~500 diverse suppliers last spring.
250+ Global DEI Ambassadors
champion and amplify our DEI initiatives.
33
Committed to Regular ESG & DEI
Reporting @ Sysco.com/sustainability
Engaged, Diverse and Experienced Board
Accounting/Audit/Financial
Reporting
M&A/Integration
Business Operations Marketing/Sales/Merchandising
Distribution/Supply Chain Public Company Board Service
Executive Leadership/Management Risk Oversight/Management
Finance Strategy Development
Foodservice Industry Experience Sustainability/ESG
HR/Human Capital
Management/Large Workforce
Digital Technology/Cybersecurity
International/Global
New directors added in 2022
Kevin Hourican
President and CEO, Sysco
Ed Shirley
Non-Executive Chairman of the Board
Chairman of the Board, Sysco
Daniel Brutto
Corporate Social Responsibility Committee Chair
Former President, UPS International and
Senior Vice President, United Parcel Service
Larry Glasscock
Corporate Governance & Nominating Committee
Chair
Former Chairman of the Board of Directors,
CEO and President of WellPoint
Bradley Halverson
Audit Committee Chair
Former Group President, Financial Products
and Corporate Services and CFO, Caterpillar
John Hinshaw
GMD COO, HSBC Group Management Services
Hans-Joachim Koerber, Ph.D.
Former chairman and CEO of METRO Group
(Germany)
Sheila Talton
President and CEO of Gray Matter Analytics
Alison Kenney Paul
Managing Director, Global Alliances of Google
Jill Golder
Former Senior Vice President and CFO,
Cracker Barrel Old Country Store
Ali Dibadj
Chief Executive Officer,
Janus Henderson Investors
Director Skills & Experiences
4
5
2
Tenure
4-7 Years
≤4
Years
7+
Years
6 Years
Average Tenure
Tenure
Board Refreshment
? Tenure policy in place
? 8 of our 10 independent directors have
joined the Sysco Board since 2016, including
3 in 2022
? Increased diversity; relevant experience
34
Investment Thesis
Sysco is Leading the Industry and Accelerating Growth
17% share of a $350B+
U.S. market and currently
driving further share gains
LT financial guidance
includes significant
sales and EPS growth
Our mission, identity and values
form our commitment to being a
purpose-driven company
Expect to grow meaningfully
faster than the total market
Industry leading service
levels & investing in
enhanced capabilities
Compelling shareholder returns
(dividend growth for 53 years and
share buybacks)
Fortress Balance Sheet:
only Investment-Grade
Food Service Distributor
Sustainability: Tangible
Science-Based
Climate & DEI Goals
$750+ million cost-out
target driving efficiency
35
Q&A
NON-GAAP
Reconciliations
Impact of Certain Items
Our discussion of our results includes certain non-GAAP financial measures, such as EBITDA and adjusted EBITDA, that we believe provide important
perspective with respect to underlying business trends. Other than free cash flow and EBITDA, any non-GAAP financial measures will be denoted as adjusted
measures to remove the impact of: (1) restructuring and transformational project costs consisting of: (a) restructuring charges, (b) expenses associated
with our various transformation initiatives and (c) facility closure and severance charges; (2) acquisition-related costs consisting of: (a) intangible
amortization expense and (b) acquisition costs and due diligence costs related to our acquisitions; and (3) the reduction of bad debt expense previously
recognized in fiscal 2020 due to the impact of the COVID-19 pandemic on the collectability of our pre-pandemic trade receivable balances. Our results for
fiscal 2023 were also impacted by adjustments to a product return allowance related to COVID-related personal protection equipment inventory and a
pension settlement charge that resulted from the purchase of a nonparticipating single premium group annuity contract that transferred defined benefit plan
obligations to an insurer. Our results for fiscal 2022 were also impacted by debt extinguishment costs and an increase in reserves for uncertain tax
positions.
The results of our foreign operations can be impacted due to changes in exchange rates applicable in converting local currencies to U.S. dollars. We
measure our total Sysco and our International Foodservice Operations results on a constant currency basis. Constant currency operating results are
calculated by translating current-period local currency operating results with the currency exchange rates used to translate the financial statements in the
comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not
changed from the comparable prior-year period.
Management believes that adjusting its operating expenses, operating income, net earnings and diluted earnings per share to remove these Certain
Items and presenting its International Foodservice Operations results on a constant currency basis, provides an important perspective with respect to our
underlying business trends and results and provides meaningful supplemental information to both management and investors that (1) is indicative of the
performance of the company’s underlying operations and (2) facilitates comparisons on a year-over-year basis.
Sysco has a history of growth through acquisitions and excludes from its non-GAAP financial measures the impact of acquisition-related intangible
amortization, acquisition costs and due-diligence costs for those acquisitions. We believe this approach significantly enhances the comparability of Sysco’s
results for fiscal 2023 and fiscal 2022.
Set forth below is a reconciliation of sales, operating expenses, operating income, net earnings and diluted earnings per share to adjusted results for
these measures for the periods presented. Individual components of diluted earnings per share may not add up to the total presented due to rounding.
Adjusted diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding.
38
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items, 2Q23 vs. 2Q22
(Dollars in Thousands, Except for Share and Per Share Data)
39
26-Week
Period Ended
Dec. 31, 2022
26-Week
Period Ended
Jan. 1, 2022
Change
in Dollars % Change
Sales (GAAP) $ 37,720,783 $ 32,776,749 $ 4,944,034 15.1%
Impact of currency fluctuations (1) 651,588 - 651,588 2.0%
Comparable sales using a constant currency basis (Non-GAAP) $ 38,372,371 $ 32,776,749 $ 5,595,622 17.1%
Cost of sales $ 30,882,312 $ 26,913,891 $ 3,968,421 14.7%
Impact of inventory valuation adjustment (2) 2,571 - 2,571 0.1%
Cost of sales adjusted for Certain Items (Non-GAAP) $ 30,884,883 $ 26,913,891 $ 3,970,992 14.8%
Gross Profit (GAAP) $ 6,838,471 $ 5,862,858 $ 975,613 16.6%
Impact of inventory valuation adjustment (2) (2,571) - (2,571) 0.0%
Comparable gross profit adjusted for Certain Items (Non-GAAP) 6,835,900 5,862,858 973,042 16.6%
Impact of currency fluctuations (1) 140,932 - 140,932 2.4%
Comparable gross profit adjusted for Certain Items using a constant
currency basis (Non-GAAP) $ 6,976,832 $ 5,862,858 $ 1,113,974 19.0%
Gross margin (GAAP) 18.13% 17.89% 24 bps
Impact of inventory valuation adjustment (2) -0.01% 0.00% -1 bps
Comparable Gross margin adjusted for Certain Items (Non-GAAP) 18.12% 17.89% 23 bps
Impact of currency fluctuations (1) 0.06% 0.00% 6 bps
Comparable Gross margin adjusted for Certain Items using a constant
currency basis (Non-GAAP) 18.18% 17.89% 29 bps
Operating expenses (GAAP) $ 5,463,496 $ 4,786,267 $ 677,229 14.1%
Impact of restructuring and transformational project costs (3) (26,034) (47,980) 21,946 45.7%
Impact of acquisition-related costs (4) (58,415) (69,658) 11,243 16.1%
Impact of bad debt reserve adjustments (5) 4,515 13,499 (8,984) -66.6%
Operating expenses adjusted for Certain Items (Non-GAAP) 5,383,562 4,682,128 701,434 15.0%
Impact of currency fluctuations (1) 137,670 - 137,670 2.9%
Comparable operating expenses adjusted for Certain Items using a
constant currency basis (Non-GAAP) $ 5,521,232 $ 4,682,128 $ 839,104 17.9%
Operating expense as a percentage of sales (GAAP) 14.48% 14.60% -12 bps
Impact of certain items adjustments -0.21% -0.32% 11 bps
Adjusted operating expense as a percentage of sales (Non-GAAP) 14.27% 14.28% -1 bps
Operating income (GAAP) $ 1,374,975 $ 1,076,591 $ 298,384 27.7%
Impact of inventory valuation adjustment (2) (2,571) - (2,571) NM
Impact of restructuring and transformational project costs (3) 26,034 47,980 (21,946) -45.7%
Impact of acquisition-related costs (4) 58,415 69,658 (11,243) -16.1%
Impact of bad debt reserve adjustments (5) (4,515) (13,499) 8,984 66.6%
Operating income adjusted for Certain Items (Non-GAAP) 1,452,338 1,180,730 271,608 23.0%
Impact of currency fluctuations (1) 3,262 - 3,262 0.3%
Comparable operating income adjusted for Certain Items using a
constant currency basis (Non-GAAP) $ 1,455,600 $ 1,180,730 $ 274,870 23.3%
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items, 2Q23 vs. 2Q22
(Dollars in Thousands, Except for Share and Per Share Data) continued
40
Operating margin (GAAP) 3.65% 3.28% 37 bps
Operating margin adjusted for Certain Items (Non-GAAP) 3.85% 3.60% 25 bps
Operating margin adjusted for Certain Items using a constant currency
basis (Non-GAAP) 3.79% 3.60% 19 bps
Interest expense (GAAP) $ 256,192 $ 371,113 $ (114,921) -31.0%
Impact of loss on extinguishment of debt - (115,603) 115,603 NM
Interest expense adjusted for Certain Items (Non-GAAP) $ 256,192 $ 255,510 $ 682 0.3%
Other Expense (Income) (GAAP) $ 345,405 $ (13,928) $ 359,333 NM
Impact of other non-routine gains and losses (314,878) - (314,878) NM
Other Expense (Income) adjusted for Certain Items (Non-GAAP) $ 30,527 $ (13,928) $ 44,455 NM
Net earnings (GAAP) $ 606,784 $ 545,454 $ 61,330 11.2%
Impact of inventory valuation adjustment (2) (2,571) - (2,571) NM
Impact of restructuring and transformational project costs (3) 26,034 47,980 (21,946) -45.7%
Impact of acquisition-related costs (4) 58,415 69,658 (11,243) -16.1%
Impact of bad debt reserve adjustments (5) (4,515) (13,499) 8,984 66.6%
Impact of loss on extinguishment of debt - 115,603 (115,603) NM
Impact of other non-routine gains and losses (6) 314,878 - 314,878 NM
Tax impact of inventory valuation adjustment (7) 646 - 646 NM
Tax impact of restructuring and transformational project costs (7) (6,538) (12,082) 5,544 45.9%
Tax impact of acquisition-related costs (7) (14,670) (17,541) 2,871 16.4%
Tax Impact of bad debt reserve adjustments (7) 1,134 3,399 (2,265) -66.6%
Tax impact of loss on extinguishment of debt (7) - (29,111) 29,111 NM
Tax impact of other non-routine gains and losses (7) (79,075) - (79,075) NM
Impact of adjustments to uncertain tax positions - 12,000 (12,000) NM
Net earnings adjusted for Certain Items (Non-GAAP) $ 900,522 $ 721,861 $ 178,661 24.8%
Diluted earnings per share (GAAP) $ 1.19 $ 1.06 $ 0.13 12.3%
Impact of inventory valuation adjustment (2) (0.01) - (0.01) NM
Impact of restructuring and transformational project costs (3) 0.05 0.09 (0.04) -44.4%
Impact of acquisition-related costs (4) 0.11 0.14 (0.03) -21.4%
Impact of bad debt reserve adjustments (5) (0.01) (0.03) 0.02 66.7%
Impact of loss on extinguishment of debt - 0.22 (0.22) NM
Impact of other non-routine gains and losses (6) 0.62 - 0.62 NM
Tax impact of restructuring and transformational project costs (7) (0.01) (0.02) 0.01 50.0%
Tax impact of acquisition-related costs (7) (0.03) (0.03) - 0.0%
Tax Impact of bad debt reserve adjustments (7) - 0.01 (0.01) NM
Tax impact of loss on extinguishment of debt (7) - (0.06) 0.06 NM
Tax impact of other non-routine gains and losses (7) (0.15) - (0.15) NM
Impact of adjustments to uncertain tax positions - 0.02 (0.02) NM
Diluted earnings per share adjusted for Certain Items (Non-GAAP) (8) $ 1.76 $ 1.40 $ 0.36 25.7%
Diluted shares outstanding 510,264,473 515,178,910
NM represents that the percentage change is not meaningful.
(3)
Fiscal 2023 includes $10 million related to restructuring, severance, and facility closure charges and $16 million related to various transformation initiative costs, primarily
consisting of changes to our business technology strategy. Fiscal 2022 includes $28 million related to various transformation initiative costs, primarily consisting of changes to our
business technology strategy and $20 million related to restructuring charges, severance and facility closure charges.
(1)
Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on the current year results.
(2)
Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory.
(4)
Fiscal 2023 includes $52 million of intangible amortization expense and $6 million in acquisition and due diligence costs. Fiscal 2022 includes $48 million of intangible
amortization expense and $21 million in acquisition and due diligence costs.
(5)
Fiscal 2023 and fiscal 2022 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020.
(7)
The tax impact of adjustments for Certain Items is calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where
the Certain Item was incurred.
(8)
Individual components of diluted earnings per share may not add up to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net
earnings divided by diluted shares outstanding.
(6)
Fiscal 2023 primarily represents a pension settlement charge of $315 million that resulted from the purchase of a nonparticipating single premium group annuity contract that
transferred defined benefit plan obligations to an insurer.
Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA)
EBITDA represents net earnings (loss) plus (i) interest expense, (ii) income tax expense and benefit, (iii) depreciation and (iv)
amortization. The net earnings (loss) component of our EBITDA calculation is impacted by Certain Items that we do not consider representative of
our underlying performance. As a result, in the non-GAAP reconciliations below for each period presented, adjusted EBITDA is computed as EBITDA
plus the impact of Certain Items, excluding certain items related to interest expense, income taxes, depreciation and amortization. Sysco's
management considers growth in this metric to be a measure of overall financial performance that provides useful information to management and
investors about the profitability of the business, as it facilitates comparison of performance on a consistent basis from period to period by providing a
measurement of recurring factors and trends affecting our business. Additionally, it is a commonly used component metric used to inform on capital
structure decisions. Adjusted EBITDA should not be used as a substitute for the most comparable GAAP financial measure in assessing the company’s
financial performance for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented
in accordance with GAAP. In the tables that follow, adjusted EBITDA for each period presented is reconciled to net earnings.
41
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (FY23 vs. FY22)
(In Thousands)
42
26-Week
Period Ended
Dec. 31, 2022
26-Week
Period Ended
Jan. 1, 2022
Change
in Dollars %/bps Change
Net earnings (GAAP) $ 606,784 $ 545,454 $ 61,330 11.2%
Interest (GAAP) 256,192 371,113 (114,921) -31.0%
Income taxes (GAAP) 166,594 173,952 (7,358) -4.2%
Depreciation and amortization (GAAP) 378,949 377,763 1,186 0.3%
EBITDA (Non-GAAP) $ 1,408,519 $ 1,468,282 $ (59,763) -4.1%
Certain Item adjustments:
Impact of inventory valuation adjustment (1) (2,571) - (2,571) NM
Impact of restructuring and transformational project costs (2) 25,302 47,440 (22,138) -46.7%
Impact of acquisition-related costs (3) 6,595 21,306 (14,711) -69.0%
Impact of bad debt reserve adjustments (4) (4,515) (13,499) 8,984 66.6%
Impact of non-routine gains and losses (5) 314,878 - 314,878 NM
EBITDA adjusted for Certain Items (Non-GAAP) (6) $ 1,748,208 $ 1,523,529 $ 224,679 14.7%
NM represents that the percentage change is not meaningful.
(2)
Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy, excluding charges related to accelerated depreciation.
(3)
Fiscal 2022 includes acquisition and due diligence costs.
(4)
Fiscal 2022 and fiscal 2021 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020.
(6)
In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $8 million and $3 million or non-cash stock compensation expense of $52 million and $60 million for fiscal 2023 and
fiscal 2022, respectively.
(1)
Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory.
(5)
Fiscal 2023 primarily represents a pension settlement charge of $315 million that resulted from the purchase of a nonparticipating single premium group annuity contract that transferred defined
benefit plan obligations to an insurer.
Projected Adjusted EPS Guidance
Adjusted earnings per share is a non-GAAP financial measure; however, we cannot predict with certainty certain items that would be
included in the most directly comparable GAAP measure for the relevant future periods. Due to these uncertainties, we cannot provide a quantitative
reconciliation of projected adjusted EPS to the most directly comparable GAAP financial measure without unreasonable effort. However, we expect to
calculate adjusted earnings per share for future periods in the same manner as the reconciliations provided for the historical periods herein.
43
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items
(In Thousands)
Sales $ 48,680,752 $ 50,366,919 $ 55,371,139 $ 58,727,324 $ 60,113,922 $ 52,893,310 $ 51,297,843 $ 68,636,146
Cost of sales (GAAP) $ 40,129,236 $ 41,326,447 $ 44,813,632 $ 47,641,933 $ 48,704,935 $ 42,991,646 $ 41,941,094 $ 56,315,622
Impact of inventory valuation adjustment - - - - - - - (73,224) (17)
Cost of sales adjusted for certain items (Non-GAAP) $ 40,129,236 $ 41,326,447 $ 44,813,632 $ 47,641,933 $ 48,704,935 $ 42,991,646 $ 41,941,094 $ 56,242,398
Gross profit (GAAP) $ 8,551,516 $ 9,040,472 $ 10,557,507 $ 11,085,391 $ 11,408,987 $ 9,901,664 $ 9,356,749 $ 12,320,524
Impact of inventory valuation adjustment - - - - - - - 73,224 (17)
Gross profit adjusted for certain items (Non-GAAP) $ 8,551,516 $ 9,040,472 $ 10,557,507 $ 11,085,391 $ 11,408,987 $ 9,901,664 $ 9,356,749 $ 12,393,748
Operating expenses (GAAP) $ 7,322,154 $ 7,189,972 $ 8,504,336 $ 8,771,335 $ 9,078,837 $ 9,152,159 $ 7,919,507 $ 9,981,489
Impact of restructuring and transformational projects costs (7,801) (1)
(123,134) (1)
(161,011) (3)
(109,524) (5)
(325,300) (7)
(371,088) (9)
(128,187) (12)
(109,532) (15)
Impact of acquisition-related costs (554,667) (2)
(35,614) (2)
(102,049) (4)
(108,136) (6)
(77,832) (8)
(64,793) (10)
(79,540) (13)
(139,173) (16)
Impact of bad debt reserve adjustments - - - - - (323,403) (11)
184,813 (14)
27,999 (14)
Impact of MEPP charge - - (35,600) (1,700) - - - -
Impact of goodwill impairment - - - - - (203,206) - -
Operating expenses adjusted for certain items (Non-GAAP) $ 6,759,686 $ 7,031,224 $ 8,205,676 $ 8,551,975 $ 8,675,705 $ 8,189,669 $ 7,896,593 $ 9,760,783
Operating income (GAAP) $ 1,229,362 $ 1,850,500 $ 2,053,171 $ 2,314,056 $ 2,330,150 $ 749,505 $ 1,437,242 $ 2,339,035
Impact of restructuring and transformational projects costs 7,801 (1)
123,134 (1)
161,011 (3)
109,524 (5)
325,300 (7)
371,088 (9)
128,187 (12)
109,532 (15)
Impact of acquisition-related costs 554,667 (2)
35,614 (2)
102,049 (4)
108,136 (6)
77,832 (8)
64,793 (10)
79,540 (13)
139,173 (16)
Impact of bad debt reserve adjustments - - - - - 323,403 (11)
(184,813) (14)
(27,999) (14)
Impact of inventory valuation adjustment - - - - - - - 73,224 (17)
Impact of MEPP charge - - 35,600 1,700 - - - -
Impact of goodwill impairment - - - - - 203,206 - -
Operating income adjusted for certain items (Non-GAAP) $ 1,791,830 $ 2,009,248 $ 2,351,831 $ 2,533,416 $ 2,733,282 $ 1,711,995 $ 1,460,156 $ 2,632,965
Interest expense (GAAP) $ 254,807 $ 306,146 $ 302,878 $ 395,483 $ 360,423 $ 408,220 $ 880,137 $ 623,643
Impact of acquisition financing costs (138,422) (18)
(123,990) (18)
- - - - - -
Impact of loss on extinguishment of debt - - - (53,104) - - (293,897) (115,603)
Interest expense adjusted for Certain items (Non-GAAP) $ 116,385 $ 182,156 $ 302,878 $ 342,379 $ 360,423 $ 408,220 $ 586,240 $ 508,040
Other (income) expense (GAAP) $ (33,592) $ 111,347 $ (15,937) $ (37,651) $ (36,109) $ 47,901 $ (27,623) $ (31,381)
Impact of foreign currency remeasurement and hedging - (146,950) - - - - - -
Impact of other non-routine gain and losses - - - - 66,309 (19)
(46,968) (19)
(10,460) (19)
2,057 (19)
Other (income) expense adjusted for certain items (Non-GAAP) $ (33,592) $ (35,603) $ (15,937) $ (37,651) $ 30,200 $ 933 $ (38,083) $ (29,324)
As noted in a previous reconciliation within this presentation, our discussion of our results includes certain non-GAAP financial measures, defined as Certain Items. The multi-year trend below represents our diluted earnings per share adjusted for Certain Items. For these
periods, our definition of Certain Items included (1) restructuring and transformational project costs consisting of: (a) restructuring charges, (b) expenses associated with our various transformation initiatives and (c) facility closure and severance charges; (2) acquisition-
related costs consisting of: (a) intangible amortization expense and (b) acquisition costs and due diligence costs related to our acquisitions; (3) merger and integration planning costs in connection with the merger that had been proposed with US Foods, Inc.; (4) excess bad
debt expense; (5) the reduction of bad debt expense previously recognized in fiscal 2020 due to the impact of the COVID-19 pandemic on the collectability of our pre-pandemic trade receivable balances; (6) multi-employer pension (MEPP) withdrawal charge; (7) goodwill
and intangibles impairment charges; (8) inventory valuation adjustments related to a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory; (9) gain on the sale of Iowa Premium; (10) acquisition
financing costs; (11) loss on extinguishment of debt; (12) repatriation of certain international earnings; (13) loss on foreign currency remeasurement and hedging; (14) tax-related certain items consisting of the impacts of: (a) tax law changes, (b) foreign tax credit benefits
and tax rate changes, (c) transition taxes and (d) uncertain tax positions; and (15) other non-routine gains and losses.
The company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes. These financial measures should not be used as a substitute for GAAP measures in assessing the company’s results of operations for
the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. As a result, in the tables that follow, each period presented is adjusted to remove the Certain Items noted above.
July 2, 2022
June 27, 2015 July 2, 2016 July 1, 2017 June 30, 2018 June 29, 2019 June 27, 2020 July 3, 2021
Year Ended
44
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items
(In Thousands) continued
45
Net earnings (GAAP) $ 686,773 $ 949,622 $ 1,142,503 $ 1,430,766 $ 1,674,271 $ 215,475 $ 524,209 $ 1,358,768
Impact of restructuring and transformational projects costs 7,801 (1)
123,134 (1)
161,011 (3)
109,524 (5)
325,300 (7)
371,088 (9)
128,187 (12)
109,532 (15)
Impact of acquisition-related costs 554,667 (2)
35,614 (2)
102,049 (4)
108,136 (6)
77,832 (8)
64,793 (10)
79,540 (13)
139,173 (16)
Impact of bad debt reserve adjustments - - - - - 323,403 (11)
(184,813) (14)
(27,999) (14)
Impact of inventory valuation adjustment - - - - - - - 73,224 (17)
Impact of MEPP charge - - 35,600 1,700 - - - -
Impact of goodwill impairment - - - - - 203,206 - -
Impact of acquisition financing costs 138,422 (18)
123,990 (18)
- - - - - -
Impact of loss on extinguishment of debt - - - 53,104 - - 293,897 115,603
Impact of foreign currency remeasurement and hedging - 146,950 - - - - - -
Impact of other non-routine gain and losses - - - - (66,309) (19)
46,968 (19)
10,460 (19)
(2,057) (19)
Tax impact of inventory valuation adjustment (21) - - - - - - - (18,902)
Tax impact of MEPP charge (21) - - (11,903) (573) - - - -
Tax impact of loss on extinguishment of debt (21) - - - (18,225) - - (79,323) (29,841)
Tax impact of restructuring and transformational project cost (21) (3,200) (47,333) (51,184) (34,024) (81,722) (90,683) (32,416) (28,274)
Tax impact of other non-routine gain and losses (21) - - - - 18,119 (12,644) (2,692) 531
Tax impact of acquisition-related costs (21) (227,518) (13,690) (19,003) (26,172) (19,553) (13,641) (19,675) (35,926)
Tax impact of bad debt reserves adjustments (21) - - - - - (76,864) 46,260 7,228
Tax impact of acquisition financing costs (21) (56,779) (47,662) - - - - - -
Tax impact of foreign currency remeasurement and hedging (21) - (56,488) - - - - - -
Tax impact of Pension Plan contribution (21) - - - (44,424) - - - -
Impact of foreign tax credit benefit - - - - (95,067) - - -
Impact of US transition tax - - - 80,000 17,516 - - -
Impact of repatriation of certain international earnings - - - 24,208 (20)
- - - -
Impact of US balance sheet remeasurement from tax law change - - - (14,477) - - - -
Impact of foreign tax rate change - - - (9,706) 6,464 924 (23,197) -
Impact of adjustments to uncertain tax positions - - - - - - - 12,000
Net earnings adjusted for Certain Items (Non-GAAP) $ 1,100,166 $ 1,214,137 $ 1,359,073 $ 1,659,837 $ 1,856,851 $ 1,032,025 $ 740,437 $ 1,673,060
Diluted earnings per share (GAAP) $ 1.15 $ 1.64 $ 2.08 $ 2.70 $ 3.20 $ 0.42 $ 1.02 $ 2.64
Impact of restructuring and transformational projects costs 0.01
(1)
0.21
(1)
0.29
(3)
0.21
(5)
0.62
(7)
0.72
(9)
0.25
(12)
0.21
(15)
Impact of acquisition-related costs 0.93
(2)
0.06
(2)
0.19
(4)
0.20
(6)
0.15
(8)
0.13
(10)
0.15
(13)
0.27
(16)
Impact of bad debt reserve adjustments - - - - - 0.63
(11)
(0.36)
(14)
(0.05)
(14)
Impact of inventory valuation adjustment - - - - - - - 0.14
(17)
Impact of MEPP charge - - 0.06 - - - - -
Impact of goodwill impairment - - - - - 0.40 - -
Impact of acquisition financing costs 0.23
(18)
0.21
(18)
- - - - - -
Impact of loss on extinguishment of debt - - - 0.10 - - 0.57 0.22
Impact of foreign currency remeasurement and hedging - 0.25 - - - - - -
Impact of other non-routine gain and losses - - - - (0.13)
(19)
0.09
(19)
0.02
(19)
-
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items
(In Thousands) continued
46
Tax impact of inventory valuation adjustment (21)
- - - - - - - (0.04)
Tax impact of MEPP charge (21)
- - (0.02) - - - - -
Tax impact of loss on extinguishment of debt (21)
- - - (0.03) - - (0.15) (0.06)
Tax impact of restructuring and transformational project cost (21)
(0.01) (0.08) (0.09) (0.06) (0.16) (0.18) (0.06) (0.06)
Tax impact of other non-routine gain and losses (21)
- - - - 0.03 (0.02) (0.01) -
Tax impact of acquisition-related costs (21)
(0.38) (0.02) (0.03) (0.05) (0.04) (0.03) (0.04) (0.07)
Tax impact of bad debt reserves adjustments (21)
- - - - - (0.15) 0.09 0.01
Tax impact of acquisition financing costs (21)
(0.10) (0.08) - - - - - -
Tax impact of foreign currency remeasurement and hedging (21)
- (0.10) - - - - - -
Tax impact of Pension Plan contribution (21)
- - - (0.08) - - - -
Impact of foreign tax credit benefit - - - - (0.18) - - -
Impact of US transition tax - - - 0.15 0.03 - - -
Impact of repatriation of certain international earnings - - - 0.05
(20)
- - - -
Impact of US balance sheet remeasurement from tax law change - - - (0.03) - - - -
Impact of foreign tax rate change - - - (0.02) 0.01 - (0.05) -
Impact of adjustments to uncertain tax positions - - - - - - - 0.02
Diluted EPS adjusted for certain items (Non-GAAP) (22)
$ 1.84 $ 2.10 $ 2.48 $ 3.14 $ 3.55 $ 2.01 $ 1.44 $ 3.25
Diluted shares outstanding 596,849,034 577,391,406 548,545,027 529,089,854 523,381,124 514,025,974 513,555,088 514,005,827
(22) Individual components of diluted earnings per share may not add up to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding.
(15) Includes $61 million related to restructuring, severance, and facility closure charges and $49 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy.
(16) Includes $106 million of intangible amortization expense and $33 million in acquisition and due diligence costs.
(17) Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory.
(18) Includes US Foods financing costs (first quarter 2016 and fiscal 2015 only) and Brakes acquisition financing costs (third and fourth quarter fiscal 2016 only)
(19) Fiscal 2019 represents a gain on the sale of the Iowa Premium business. Fiscal 2020 represents the impairment of assets held for sale. Fiscal 2021 includes $23 million of loss from the sale of businesses and $9 million of gains on sale of property and other non-
recurring gains and losses. Fiscal 2022 represents a gain on the sale of property.
(20) Represents the benefit from tax credits obtained through the repatriation of certain international earnings, partially offset by foreign withholding tax incurred.
(21) The tax impact of adjustments for Certain Items are calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred.
(11) Represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic.
(12) Includes $72 million related to restructuring, facility closure, and severance charges and $56 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy.
(13) Represents $74 million of intangible amortization expense from the Brakes Acquisition, which is included in the results of International Foodservice, as well as $6 million of due diligence and integration costs related to Greco and Sons.
(14) Represents the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020.
(6) Includes $67 million related to intangible amortization expense from the Brakes Acquisition, which is included in the results of Brakes, $18 million in integration costs, and a $14 million write-off for an intangible asset due to restructuring in France.
(7) Includes $174 million related to severance, restructuring and facility closure charges in Europe and Canada and at Sysco's Global Shared Service Center, of which $61 million relates to our France restructuring (i.e. Our integration of Brake France and Davigel into
Sysco France), and $151 million related to various transformation initiative costs, of which $18 million relates to accelerated depreciation with regard to software that was replaced.
(10) Includes $65 million related to intangible amortization expense from the Brakes Acquisition, which is included in the results of International Foodservice.
(1) Includes severance charges, professional fees on 3-year financial objectives, facility closure costs and costs associated with our revised business technology strategy
(9) Includes $265 million related to restructuring, severance and facility closure charges, of which $99 million relates to severance charges, and $106 million related to various transformation initiative costs, primarily consisting of changes to our business technology
(8) Includes $77 million related to intangible amortization expense from the Brakes Acquisition, which is included in the results of International Foodservice.
(4) Includes $76 million related to intangible amortization expense from the Brakes Acquisition, which is included in the results of Brakes, and $24 million in integration costs.
(2) Includes US Foods merger and integration planning and transaction costs (first quarter 2016 and fiscal 2015 only) and Brakes acquisition transaction costs (third and fourth quarters fiscal 2016 only)
(5) Includes $70 million related to business technology costs and professional fees on three-year financial objectives and $33 million related to restructuring charges.
(3) Includes $111 million in accelerated depreciation associated with our revised business technology strategy and $46 million related to restructuring expenses within our Brakes operations, which includes costs to convert to legacy systems in conjunction with our
revised business technology strategy, professional fees on 3-year financial objectives, & severance charges.

More Related Content

What's hot

CTG-Cap nhat ket qua KD quy 1.2023_final_EN_31.05.2023.pptx
CTG-Cap nhat ket qua KD quy 1.2023_final_EN_31.05.2023.pptxCTG-Cap nhat ket qua KD quy 1.2023_final_EN_31.05.2023.pptx
CTG-Cap nhat ket qua KD quy 1.2023_final_EN_31.05.2023.pptx
ngothithungan1
?

What's hot (20)

The FDA and industry: A recipe for collaborating in the New Health Economy
The FDA and industry:  A recipe for collaborating in the New Health EconomyThe FDA and industry:  A recipe for collaborating in the New Health Economy
The FDA and industry: A recipe for collaborating in the New Health Economy
?
CTG-Cap nhat ket qua KD quy 1.2023_final_EN_31.05.2023.pptx
CTG-Cap nhat ket qua KD quy 1.2023_final_EN_31.05.2023.pptxCTG-Cap nhat ket qua KD quy 1.2023_final_EN_31.05.2023.pptx
CTG-Cap nhat ket qua KD quy 1.2023_final_EN_31.05.2023.pptx
?
Q4 2022 DBX Investor Presentation.pdf
Q4 2022 DBX Investor Presentation.pdfQ4 2022 DBX Investor Presentation.pdf
Q4 2022 DBX Investor Presentation.pdf
?
Accenture Consumer Behavior Research: The value shake-up
Accenture Consumer Behavior Research: The value shake-upAccenture Consumer Behavior Research: The value shake-up
Accenture Consumer Behavior Research: The value shake-up
?
The Electric Car Tipping Point
The Electric Car Tipping PointThe Electric Car Tipping Point
The Electric Car Tipping Point
?
Fintech New York: Partnerships, Platforms and Open Innovation
Fintech New York: Partnerships, Platforms and Open InnovationFintech New York: Partnerships, Platforms and Open Innovation
Fintech New York: Partnerships, Platforms and Open Innovation
?
Must Know Social Media Trends For 2022
Must Know Social Media Trends For 2022Must Know Social Media Trends For 2022
Must Know Social Media Trends For 2022
?
The AI Rush
The AI RushThe AI Rush
The AI Rush
?
Whole Brain Leadership: New Rules of Engagement for the C-Suite| Accenture St...
Whole Brain Leadership: New Rules of Engagement for the C-Suite| Accenture St...Whole Brain Leadership: New Rules of Engagement for the C-Suite| Accenture St...
Whole Brain Leadership: New Rules of Engagement for the C-Suite| Accenture St...
?
Airbnb Pitch Deck From 2008
Airbnb Pitch Deck From 2008Airbnb Pitch Deck From 2008
Airbnb Pitch Deck From 2008
?
Digital and Innovation Strategies for the Infrastructure Industry: Tim McManu...
Digital and Innovation Strategies for the Infrastructure Industry: Tim McManu...Digital and Innovation Strategies for the Infrastructure Industry: Tim McManu...
Digital and Innovation Strategies for the Infrastructure Industry: Tim McManu...
?
The Bottom Line on Trust | Accenture Strategy Competitive Agility Index 2018
The Bottom Line on Trust | Accenture Strategy Competitive Agility Index 2018The Bottom Line on Trust | Accenture Strategy Competitive Agility Index 2018
The Bottom Line on Trust | Accenture Strategy Competitive Agility Index 2018
?
Technology Trends 2021 | Tech Vision | Accenture
Technology Trends 2021 | Tech Vision | AccentureTechnology Trends 2021 | Tech Vision | Accenture
Technology Trends 2021 | Tech Vision | Accenture
?
When, Where & How AI Will Boost Federal Workforce Productivity
When, Where & How AI Will Boost Federal Workforce ProductivityWhen, Where & How AI Will Boost Federal Workforce Productivity
When, Where & How AI Will Boost Federal Workforce Productivity
?
13 things you didn’t know you could do with the S Pen
13 things you didn’t know you could do with the S Pen13 things you didn’t know you could do with the S Pen
13 things you didn’t know you could do with the S Pen
?
Marketing Go To Market Roll Out Plan New Product Launch PowerPoint Presentati...
Marketing Go To Market Roll Out Plan New Product Launch PowerPoint Presentati...Marketing Go To Market Roll Out Plan New Product Launch PowerPoint Presentati...
Marketing Go To Market Roll Out Plan New Product Launch PowerPoint Presentati...
?
Business Strategy Presentation Template 2023 - By ex-Mckinsey and BCG consult...
Business Strategy Presentation Template 2023 - By ex-Mckinsey and BCG consult...Business Strategy Presentation Template 2023 - By ex-Mckinsey and BCG consult...
Business Strategy Presentation Template 2023 - By ex-Mckinsey and BCG consult...
?
Digital Marketing Trends 2023- Shereen Badr
Digital Marketing Trends 2023- Shereen BadrDigital Marketing Trends 2023- Shereen Badr
Digital Marketing Trends 2023- Shereen Badr
?
How Atlassian Does Product-Led Growth by Atlassian VP of Product
How Atlassian Does Product-Led Growth by Atlassian VP of ProductHow Atlassian Does Product-Led Growth by Atlassian VP of Product
How Atlassian Does Product-Led Growth by Atlassian VP of Product
?
4 Biggest Challenges for Creative Teams
4 Biggest Challenges for Creative Teams4 Biggest Challenges for Creative Teams
4 Biggest Challenges for Creative Teams
?

Similar to Consumer Analyst Group of New York (CAGNY) Conference 2023

SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYYIR
?

Similar to Consumer Analyst Group of New York (CAGNY) Conference 2023 (20)

1q23-syy-earnings-slides.pdf
1q23-syy-earnings-slides.pdf1q23-syy-earnings-slides.pdf
1q23-syy-earnings-slides.pdf
?
3q23-syy-earnings-slides-v19.pdf
3q23-syy-earnings-slides-v19.pdf3q23-syy-earnings-slides-v19.pdf
3q23-syy-earnings-slides-v19.pdf
?
Sysco Q2 FY24 Earnings Call Presentation .pdf
Sysco Q2 FY24 Earnings Call Presentation .pdfSysco Q2 FY24 Earnings Call Presentation .pdf
Sysco Q2 FY24 Earnings Call Presentation .pdf
?
SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)
?
SYY 2024 Q1 Earnings Slides
SYY 2024 Q1 Earnings SlidesSYY 2024 Q1 Earnings Slides
SYY 2024 Q1 Earnings Slides
?
2q23-syy-earnings-slides.pdf
2q23-syy-earnings-slides.pdf2q23-syy-earnings-slides.pdf
2q23-syy-earnings-slides.pdf
?
4Q23 Earnings Call Presentation
4Q23 Earnings Call Presentation4Q23 Earnings Call Presentation
4Q23 Earnings Call Presentation
?
4q23-syy-earnings-slides-v1.pdf
4q23-syy-earnings-slides-v1.pdf4q23-syy-earnings-slides-v1.pdf
4q23-syy-earnings-slides-v1.pdf
?
2023 Barclays Global Consumer Staples Conference.pdf
2023 Barclays Global Consumer Staples Conference.pdf2023 Barclays Global Consumer Staples Conference.pdf
2023 Barclays Global Consumer Staples Conference.pdf
?
Q3 FY24 Earnings Conference Call Presentation
Q3 FY24 Earnings Conference Call PresentationQ3 FY24 Earnings Conference Call Presentation
Q3 FY24 Earnings Conference Call Presentation
?
4q22-syy-earnings-slides.pdf
4q22-syy-earnings-slides.pdf4q22-syy-earnings-slides.pdf
4q22-syy-earnings-slides.pdf
?
20160216 cagny presentation vfinal
20160216 cagny presentation vfinal20160216 cagny presentation vfinal
20160216 cagny presentation vfinal
?
morgan-stanley-global-consumer-and-retail-conference.pdf
morgan-stanley-global-consumer-and-retail-conference.pdfmorgan-stanley-global-consumer-and-retail-conference.pdf
morgan-stanley-global-consumer-and-retail-conference.pdf
?
Jefferies 2016 Consumer Conference
Jefferies 2016 Consumer ConferenceJefferies 2016 Consumer Conference
Jefferies 2016 Consumer Conference
?
Consumer Analyst Group of New York (CAGNY) Conference 2019
Consumer Analyst Group of New York (CAGNY) Conference 2019 Consumer Analyst Group of New York (CAGNY) Conference 2019
Consumer Analyst Group of New York (CAGNY) Conference 2019
?
2019 cagny-presentation-vfinal
2019 cagny-presentation-vfinal2019 cagny-presentation-vfinal
2019 cagny-presentation-vfinal
?
Sysco at 2016 Barclays Global Consumer Staples Conference
Sysco at 2016 Barclays Global Consumer Staples Conference Sysco at 2016 Barclays Global Consumer Staples Conference
Sysco at 2016 Barclays Global Consumer Staples Conference
?
Why invest-page-update-071017
Why invest-page-update-071017Why invest-page-update-071017
Why invest-page-update-071017
?
P&g
P&gP&g
P&g
?
Jefferies Consumer Conference
Jefferies Consumer ConferenceJefferies Consumer Conference
Jefferies Consumer Conference
?

More from Sysco_Investors

More from Sysco_Investors (20)

3q22-syy-earnings-slides.pdf
3q22-syy-earnings-slides.pdf3q22-syy-earnings-slides.pdf
3q22-syy-earnings-slides.pdf
?
2q22 earnings-call-presentation
2q22 earnings-call-presentation2q22 earnings-call-presentation
2q22 earnings-call-presentation
?
1q22 syy-earnings-slides
1q22 syy-earnings-slides1q22 syy-earnings-slides
1q22 syy-earnings-slides
?
Q4 2021 Presentation
Q4 2021 PresentationQ4 2021 Presentation
Q4 2021 Presentation
?
Q3 2021 Presentation
Q3 2021 PresentationQ3 2021 Presentation
Q3 2021 Presentation
?
Q2 2021-presentation
Q2 2021-presentationQ2 2021-presentation
Q2 2021-presentation
?
Q1 2021 Earning
Q1 2021 EarningQ1 2021 Earning
Q1 2021 Earning
?
4Q20_Earnings_Call_Presentation
4Q20_Earnings_Call_Presentation4Q20_Earnings_Call_Presentation
4Q20_Earnings_Call_Presentation
?
3 q20 syy earnings slides vfinal
3 q20 syy earnings slides vfinal3 q20 syy earnings slides vfinal
3 q20 syy earnings slides vfinal
?
3q 2020-earnings-slides
3q 2020-earnings-slides3q 2020-earnings-slides
3q 2020-earnings-slides
?
Cagny 2020
Cagny 2020Cagny 2020
Cagny 2020
?
Sysco Earnings Results 2Q20
Sysco Earnings Results 2Q20Sysco Earnings Results 2Q20
Sysco Earnings Results 2Q20
?
Sysco Earnings Results 1Q20
Sysco Earnings Results 1Q20Sysco Earnings Results 1Q20
Sysco Earnings Results 1Q20
?
Sysco Earnings Results 4Q19
Sysco Earnings Results 4Q19Sysco Earnings Results 4Q19
Sysco Earnings Results 4Q19
?
Jefferies 2019 Consumer Conference
Jefferies 2019 Consumer ConferenceJefferies 2019 Consumer Conference
Jefferies 2019 Consumer Conference
?
Sysco Earnings Results 3Q19
Sysco Earnings Results 3Q19Sysco Earnings Results 3Q19
Sysco Earnings Results 3Q19
?
Earnings slides-4q18
Earnings slides-4q18Earnings slides-4q18
Earnings slides-4q18
?
Jefferies Consumer Summit
Jefferies Consumer SummitJefferies Consumer Summit
Jefferies Consumer Summit
?
2018 cagny presentation
2018 cagny presentation2018 cagny presentation
2018 cagny presentation
?
Sysco 2q 2018
Sysco 2q 2018Sysco 2q 2018
Sysco 2q 2018
?

Recently uploaded

What is paper chromatography, principal, procedure,types, diagram, advantages...
What is paper chromatography, principal, procedure,types, diagram, advantages...What is paper chromatography, principal, procedure,types, diagram, advantages...
What is paper chromatography, principal, procedure,types, diagram, advantages...
srcw2322l101
?
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot ReportFuture of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
Dubai Multi Commodity Centre
?
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg PfizerJual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Pusat Herbal Resmi BPOM
?
#Mtp-Kit Prices ? Qatar. Doha (+27737758557) Abortion Pills For Sale In Doha,...
#Mtp-Kit Prices ? Qatar. Doha (+27737758557) Abortion Pills For Sale In Doha,...#Mtp-Kit Prices ? Qatar. Doha (+27737758557) Abortion Pills For Sale In Doha,...
#Mtp-Kit Prices ? Qatar. Doha (+27737758557) Abortion Pills For Sale In Doha,...
drm1699
?
如何办理(厂鲍罢毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
如何办理(厂鲍罢毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证如何办理(厂鲍罢毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
如何办理(厂鲍罢毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
ogawka
?

Recently uploaded (20)

The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdf
The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdfThe Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdf
The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdf
?
Elevate Your Online Presence with SEO Services
Elevate Your Online Presence with SEO ServicesElevate Your Online Presence with SEO Services
Elevate Your Online Presence with SEO Services
?
What is paper chromatography, principal, procedure,types, diagram, advantages...
What is paper chromatography, principal, procedure,types, diagram, advantages...What is paper chromatography, principal, procedure,types, diagram, advantages...
What is paper chromatography, principal, procedure,types, diagram, advantages...
?
How to refresh to be fit for the future world
How to refresh to be fit for the future worldHow to refresh to be fit for the future world
How to refresh to be fit for the future world
?
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot ReportFuture of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
Future of Trade 2024 - Decoupled and Reconfigured - Snapshot Report
?
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
?
Blinkit: Revolutionizing the On-Demand Grocery Delivery Service.pptx
Blinkit: Revolutionizing the On-Demand Grocery Delivery Service.pptxBlinkit: Revolutionizing the On-Demand Grocery Delivery Service.pptx
Blinkit: Revolutionizing the On-Demand Grocery Delivery Service.pptx
?
South Africa's 10 Most Influential CIOs to Watch.pdf
South Africa's 10 Most Influential CIOs to Watch.pdfSouth Africa's 10 Most Influential CIOs to Watch.pdf
South Africa's 10 Most Influential CIOs to Watch.pdf
?
hyundai capital 2023 consolidated financial statements
hyundai capital 2023 consolidated financial statementshyundai capital 2023 consolidated financial statements
hyundai capital 2023 consolidated financial statements
?
tekAura | Desktop Procedure Template (2016)
tekAura | Desktop Procedure Template (2016)tekAura | Desktop Procedure Template (2016)
tekAura | Desktop Procedure Template (2016)
?
Moradia Isolada com Logradouro; Detached house with patio in Penacova
Moradia Isolada com Logradouro; Detached house with patio in PenacovaMoradia Isolada com Logradouro; Detached house with patio in Penacova
Moradia Isolada com Logradouro; Detached house with patio in Penacova
?
High Profile Bangalore Just VIP Brigade Road 100% Genuine at your Door Step
High Profile Bangalore Just VIP Brigade Road 100% Genuine at your Door StepHigh Profile Bangalore Just VIP Brigade Road 100% Genuine at your Door Step
High Profile Bangalore Just VIP Brigade Road 100% Genuine at your Door Step
?
Beyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic AccountingBeyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic Accounting
?
MichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdfMichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdf
?
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg PfizerJual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
?
#Mtp-Kit Prices ? Qatar. Doha (+27737758557) Abortion Pills For Sale In Doha,...
#Mtp-Kit Prices ? Qatar. Doha (+27737758557) Abortion Pills For Sale In Doha,...#Mtp-Kit Prices ? Qatar. Doha (+27737758557) Abortion Pills For Sale In Doha,...
#Mtp-Kit Prices ? Qatar. Doha (+27737758557) Abortion Pills For Sale In Doha,...
?
WAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdfWAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdf
?
如何办理(厂鲍罢毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
如何办理(厂鲍罢毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证如何办理(厂鲍罢毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
如何办理(厂鲍罢毕业证书)斯威本科技大学毕业证成绩单本科硕士学位证留信学历认证
?
1Q24_EN hyundai capital 1q performance
1Q24_EN   hyundai capital 1q performance1Q24_EN   hyundai capital 1q performance
1Q24_EN hyundai capital 1q performance
?
How Bookkeeping helps you in Cost Saving, Tax Saving and Smooth Business Runn...
How Bookkeeping helps you in Cost Saving, Tax Saving and Smooth Business Runn...How Bookkeeping helps you in Cost Saving, Tax Saving and Smooth Business Runn...
How Bookkeeping helps you in Cost Saving, Tax Saving and Smooth Business Runn...
?

Consumer Analyst Group of New York (CAGNY) Conference 2023

  • 2. 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 under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the views of management at the time such statements are made and are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual results to differ materially from current expectations. These statements include statements concerning: the effect, impact, potential duration or other implications of the COVID-19 pandemic and any expectations we may have with respect thereto; our expectations regarding future improvements in productivity; our belief that improvements in our organizational capabilities will deliver compelling outcomes in future periods; our expectations regarding improvements in international volume; our expectations that our transformational agenda will drive long-term growth; our expectations regarding the continuation of an inflationary environment; our expectations regarding improvements in the efficiency of our supply chain; our expectations regarding the impact of our Recipe for Growth strategy and the pace of progress in implementing the initiatives under that strategy; our expectations regarding Sysco’s ability to outperform the market in future periods; our expectations that our strategic priorities will enable us to grow faster than the market; our expectations regarding our efforts to reduce overtime rates and the incremental investments in hiring; our expectations regarding the expansion of our driver academy and our belief that the academy will enable us to provide upward career path mobility for our warehouse colleagues and improve colleague retention; our expectations regarding the benefits of the six-day delivery and last mile distribution models; our plans to improve the capabilities of our sales team; our expectations regarding the impact of our growth initiatives and their ability to enable Sysco to consistently outperform the market; our expectations regarding the impact of the Concord Foods acquisition on our business; our expectations regarding our ability to grow faster than the total market in fiscal 2023 and to exceed our growth target by the end of fiscal 2024; our ability to deliver against our strategic priorities; economic trends in the United States and abroad; our belief that there is further opportunity for profit in the future; our future growth, including growth in sales and earnings per share; our expectations regarding profits and sales in fiscal 2023; the pace of implementation of our business transformation initiatives; our expectations regarding our balanced approach to capital allocation and rewarding our shareholders; our plans to improve colleague retention, training and productivity; our belief that our Recipe for Growth transformation is creating capabilities that will help us profitably grow for the long term; our expectations regarding our long-term financial outlook; our expectations of the effects labor harmony will have on sales and case volume, as well as mitigation expenses; our expectations for customer acquisition in the local/street space; our expectations regarding the effectiveness of our GSC expense control measures; our expectations regarding the growth and resilience of our Food Away From Home market; and our expectations regarding additional improvements from snap-back costs and productivity expenses during the fiscal third quarter. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Sysco’s control. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see our Annual Report on Form 10-K for the year ended July 2, 2022, as filed with the SEC, and our subsequent filings with the SEC. We do not undertake to update our forward-looking statements, except as required by applicable law. 2
  • 4. F o o d S u p p l y C h a i n F o o d S a l e s & M a r k e t i n g
  • 5. Sysco is the Backbone of the Food Away From Home Industry and Accelerating Growth FY2022 Total Sysco Sales 7% Travel and Leisure 63% Restaurants 8% Healthcare 14% Other 8% Education And Government $68.6B In Annual Sales ~700K Customer Locations 7,500+ Sales Consultants 71K+ Colleagues Across the Globe IFG Operations
  • 6. Food Away From Home Continues to Gain Share 30% 35% 40% 45% 50% 55% 60% 65% 70% Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Percentage of Combined Monthly Sales (1993 - 2023) Grocery Stores Food Services and Drinking Places 40% 45% 50% 55% 60% Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Percentage of Combined Monthly Sales (2020 - 2023) Grocery Stores Food Services and Drinking Places
  • 7. Sysco is the Industry Leader with Breadth, Depth, Scale, and Reach Restaurants Recreation Lodging Catering & Events Sports & Entertainment Retail Travel & Leisure Healthcare & Senior Living Education Government 7
  • 8. Sysco Leads in Local & Specialty
  • 9. Sysco Brand Products Generate Over $18 Billion in Sales1 To put it in perspective… $7.1B sales FY2022 $15.3B sales FY2022 ~$5B ~$1B ~$500M And we have 11 brands >$500M $10.4B sales FY2022 $5.4B sales FY2022 Nearly Half of Local Cases Driven by Sysco Brand1 1 Fiscal Year 2022 financials
  • 10. Sysco is Winning with National Customers Sysco Brand Specialty Products Margin Optimization National Scale Fulfillment Strength Targeted Sales Expertise GROWTH DRIVERS MARGIN DRIVERS Healthcare Education Restaurants
  • 11. Sysco is Winning in the Marketplace Sysco has Outperformed the Total Foodservice Market 100 index Q1'FY21 Q2'FY21 Q3'FY21 Q4'FY21 Q1'FY22 Q2'FY22 Q3'FY22 Q4'FY22 Q1'FY23 Q2'FY23 US Foodservice Operations Revenue Indexed to 2019 vs Technomic Market Estimated Indexed to 2019 Sysco US Ops Total Market excl SYY 11 Source: Sysco U.S. Operations Revenue as of Q2 FY23 close; Technomic Custom Wall Chart Market & Inflation Oct ‘22
  • 12. Our Recipe for Growth DIGITAL Enrich the customer experience through personalized digital tools that reduce friction in the purchase experience and introduce innovation to our customers PRODUCTS AND SOLUTIONS Customer focused marketing and merchandising solutions that inspire increased sales of our broad assortment of fair priced products and services SUPPLY CHAIN Efficiently and consistently serve customers with the products they need, when and how they need them, through a flexible delivery framework FUTURE HORIZON We are committed to responsible growth. We will cultivate new channels, segments and capabilities while being stewards of our company and our planet for the long-term. We will fund our journey through cost-out and efficiency improvements CUSTOMER TEAMS Our greatest strength is our people. People who are passionate about food and food service. Our diverse team delivers expertise and differentiated services designed to help our customers grow their business IDENTITY | Our Role Together we define the future of foodservice and supply chain MISSION | Our What Delivering success for our customers through industry-leading people, products and solutions PURPOSE | Our Why Connecting the World to Share Food and Care for One Another STRATEGY | How We Win - We will grow meaningfully faster than the market through our strategic priorities Sysco Is a Purpose-Driven Organization, Defining the Future of Our Industry 12
  • 14. Products & Solutions Strategic Sourcing Growth Cuisine Segments (Italian, Asian) Sysco Brands Perks!
  • 18.
  • 19. Neil Russell Senior Vice President - Corporate Affairs and Interim CFO
  • 20. 1H 2023 Consolidated Financial Results $1.5 $1.7 Adj. EBITDA1 (billions) $32.8 $37.7 Net Sales (billions) $1.40 $1.76 Adj. EPS1 1H 2022 1H 2023 Overview ? Sales increased 15.1% versus the prior year ? Gross margin increased 24 basis points to 18.1% ? Adjusted EBITDA and adjusted EPS grew 14.7% and 25.7%, respectively ? Food product inflation moderated during 1H 2023 1H 2022 1H 2023 1H 2023 GAAP Operating Income +27.7% to $1.4 billion 1H 2022 1H 2023 20 1 See Non-GAAP reconciliations at the end of the presentation.
  • 21. Operating Cost Improvements; Reduced Snap-Back and Productivity Costs Overview ? $60M of operating expense reductions within the last two quarters ? Continue to invest in transformation efforts ? Snap-back costs eliminated during second quarter of FY23 ? Productivity costs reduced by ~50% during second quarter of FY23 $67 M $41 M $29 M Q4 2022 $63 M $41 M $10 M Q1 2023 $55 M $22 M Q2 2023 Snap-Back Costs Productivity Costs Transformation Investments 21
  • 22. Driving Efficiencies with Structural Cost-Out Achieved: $750M ? Incremental Cost-Out Expected for FY23 and Beyond ? Cost-Out Included in FY23 Adjusted EPS Growth Assumptions
  • 23. Historical FY Adjusted EPS Performance $1.84 $2.10 $2.48 $3.14 $3.55 $2.01 $1.44 $3.25 $4.07 1 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023E Mid-Point FY Guidance +25% Growth1 23 1Midpoint of FY 2023 adjusted EPS guidance of $4.00-$4.15. See Non-GAAP reconciliations at the end of the presentation.
  • 24. Capital Structure and Allocation 1 2 3 24 Investment Priority Progress Invest for Growth ? Continued capital investments in our technology, fleet and buildings ? Strong pipeline of tuck-in acquisitions focused on Broadline, Specialty and Cuisine-type opportunities as well as underpenetrated markets in the U.S., U.K. and Canada Maintain a Strong Balance Sheet ? Maintaining a strong IG rating ? Targeting a net debt to EBITDA1 ratio of 2.5x-2.75x ? Ended Q2 with a net debt to adjusted EBITDA1 ratio of 3.0x ? Well positioned in current rate environment as approximately 95% of debt is fixed rate Shareholder Return ? During the second quarter, the Company returned $249 million to shareholders via dividend payments ? Cumulatively returned approximately $14.3 billion to shareholders since fiscal 2015 1 See Non-GAAP reconciliations at the end of the presentation.
  • 25. Disciplined Investments to Support Growth 7 new buildings underway to deliver new capacity in high-potential markets and cuisine segments 25
  • 26. Sysco has Consistently Increased Returns to Shareholders $0.7 B $3.3 B $5.9 B $7.6 B $9.4 B $11.1 B $12.0 B $13.5 B $14.3 B FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 (Q2 YTD) Cumulative Cash Returned to Shareholders Dividends Shares Repurchased Over $14 Billion of Cash Returned to Shareholders Through Q2 2023 26
  • 27. Key Characteristics of Dividend Aristocrats1 ? Part of the S&P 500 ? Dividend growth for a minimum of 25 consecutive years ? Consistent cash flows to weather economic fluctuations ? Strong history of returning cash back to shareholders through dividends and share repurchases Sysco is a Dividend Aristocrat, Growing Dividend for 53+ Years 1 Dividend Aristocrats are part of the S&P 500 and have increased their dividends for a minimum of 25 consecutive years Only 64 companies total, and 14 consumer staple companies hold the title to being a dividend aristocrat as of 12.31.22
  • 29.
  • 30. Our Approach to Sustainability ? Philanthropy & Community Giving ? Diversity, Equity & Inclusion ? Health & Wellness PEOPLE PLANET ? Sustainable Agriculture ? Energy & Carbon ? Waste Reduction PRODUCTS ? Responsible Sourcing ? Human Rights ? Animal Welfare 30
  • 31. Climate Action Supports Customers and Drives Progress in the Supply Chain Customers Suppliers Customers ask Sysco to provide climate data and set reduction targets to maintain relationships. Prospective customers are increasingly looking to distributor partners who have climate goals. 31
  • 32. We are Making Real Progress with Our Climate Commitments Installed a solar panel system to meet 15% of energy needs of our British business April 2022 July 2022 November 2022 Delivery of the first electric Class 8 tractor in Riverside, CA Created first Southern Plains Grassland Program, providing support to 10 rancher-led sustainable grazing projects 32 2030 Reduce Sysco’s Global Direct Emissions 27.5% by 20301 1 Scope 1 & 2
  • 33. We Aspire to Create a Global Culture that is Decidedly Diverse, Equitable and Inclusive Achieved 62% gender and ethnic diversity for U.S.-based colleagues in FY22. First Supplier Diversity Summit Gathered ~500 diverse suppliers last spring. 250+ Global DEI Ambassadors champion and amplify our DEI initiatives. 33 Committed to Regular ESG & DEI Reporting @ Sysco.com/sustainability
  • 34. Engaged, Diverse and Experienced Board Accounting/Audit/Financial Reporting M&A/Integration Business Operations Marketing/Sales/Merchandising Distribution/Supply Chain Public Company Board Service Executive Leadership/Management Risk Oversight/Management Finance Strategy Development Foodservice Industry Experience Sustainability/ESG HR/Human Capital Management/Large Workforce Digital Technology/Cybersecurity International/Global New directors added in 2022 Kevin Hourican President and CEO, Sysco Ed Shirley Non-Executive Chairman of the Board Chairman of the Board, Sysco Daniel Brutto Corporate Social Responsibility Committee Chair Former President, UPS International and Senior Vice President, United Parcel Service Larry Glasscock Corporate Governance & Nominating Committee Chair Former Chairman of the Board of Directors, CEO and President of WellPoint Bradley Halverson Audit Committee Chair Former Group President, Financial Products and Corporate Services and CFO, Caterpillar John Hinshaw GMD COO, HSBC Group Management Services Hans-Joachim Koerber, Ph.D. Former chairman and CEO of METRO Group (Germany) Sheila Talton President and CEO of Gray Matter Analytics Alison Kenney Paul Managing Director, Global Alliances of Google Jill Golder Former Senior Vice President and CFO, Cracker Barrel Old Country Store Ali Dibadj Chief Executive Officer, Janus Henderson Investors Director Skills & Experiences 4 5 2 Tenure 4-7 Years ≤4 Years 7+ Years 6 Years Average Tenure Tenure Board Refreshment ? Tenure policy in place ? 8 of our 10 independent directors have joined the Sysco Board since 2016, including 3 in 2022 ? Increased diversity; relevant experience 34
  • 35. Investment Thesis Sysco is Leading the Industry and Accelerating Growth 17% share of a $350B+ U.S. market and currently driving further share gains LT financial guidance includes significant sales and EPS growth Our mission, identity and values form our commitment to being a purpose-driven company Expect to grow meaningfully faster than the total market Industry leading service levels & investing in enhanced capabilities Compelling shareholder returns (dividend growth for 53 years and share buybacks) Fortress Balance Sheet: only Investment-Grade Food Service Distributor Sustainability: Tangible Science-Based Climate & DEI Goals $750+ million cost-out target driving efficiency 35
  • 36. Q&A
  • 38. Impact of Certain Items Our discussion of our results includes certain non-GAAP financial measures, such as EBITDA and adjusted EBITDA, that we believe provide important perspective with respect to underlying business trends. Other than free cash flow and EBITDA, any non-GAAP financial measures will be denoted as adjusted measures to remove the impact of: (1) restructuring and transformational project costs consisting of: (a) restructuring charges, (b) expenses associated with our various transformation initiatives and (c) facility closure and severance charges; (2) acquisition-related costs consisting of: (a) intangible amortization expense and (b) acquisition costs and due diligence costs related to our acquisitions; and (3) the reduction of bad debt expense previously recognized in fiscal 2020 due to the impact of the COVID-19 pandemic on the collectability of our pre-pandemic trade receivable balances. Our results for fiscal 2023 were also impacted by adjustments to a product return allowance related to COVID-related personal protection equipment inventory and a pension settlement charge that resulted from the purchase of a nonparticipating single premium group annuity contract that transferred defined benefit plan obligations to an insurer. Our results for fiscal 2022 were also impacted by debt extinguishment costs and an increase in reserves for uncertain tax positions. The results of our foreign operations can be impacted due to changes in exchange rates applicable in converting local currencies to U.S. dollars. We measure our total Sysco and our International Foodservice Operations results on a constant currency basis. Constant currency operating results are calculated by translating current-period local currency operating results with the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period. Management believes that adjusting its operating expenses, operating income, net earnings and diluted earnings per share to remove these Certain Items and presenting its International Foodservice Operations results on a constant currency basis, provides an important perspective with respect to our underlying business trends and results and provides meaningful supplemental information to both management and investors that (1) is indicative of the performance of the company’s underlying operations and (2) facilitates comparisons on a year-over-year basis. Sysco has a history of growth through acquisitions and excludes from its non-GAAP financial measures the impact of acquisition-related intangible amortization, acquisition costs and due-diligence costs for those acquisitions. We believe this approach significantly enhances the comparability of Sysco’s results for fiscal 2023 and fiscal 2022. Set forth below is a reconciliation of sales, operating expenses, operating income, net earnings and diluted earnings per share to adjusted results for these measures for the periods presented. Individual components of diluted earnings per share may not add up to the total presented due to rounding. Adjusted diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. 38
  • 39. Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items, 2Q23 vs. 2Q22 (Dollars in Thousands, Except for Share and Per Share Data) 39 26-Week Period Ended Dec. 31, 2022 26-Week Period Ended Jan. 1, 2022 Change in Dollars % Change Sales (GAAP) $ 37,720,783 $ 32,776,749 $ 4,944,034 15.1% Impact of currency fluctuations (1) 651,588 - 651,588 2.0% Comparable sales using a constant currency basis (Non-GAAP) $ 38,372,371 $ 32,776,749 $ 5,595,622 17.1% Cost of sales $ 30,882,312 $ 26,913,891 $ 3,968,421 14.7% Impact of inventory valuation adjustment (2) 2,571 - 2,571 0.1% Cost of sales adjusted for Certain Items (Non-GAAP) $ 30,884,883 $ 26,913,891 $ 3,970,992 14.8% Gross Profit (GAAP) $ 6,838,471 $ 5,862,858 $ 975,613 16.6% Impact of inventory valuation adjustment (2) (2,571) - (2,571) 0.0% Comparable gross profit adjusted for Certain Items (Non-GAAP) 6,835,900 5,862,858 973,042 16.6% Impact of currency fluctuations (1) 140,932 - 140,932 2.4% Comparable gross profit adjusted for Certain Items using a constant currency basis (Non-GAAP) $ 6,976,832 $ 5,862,858 $ 1,113,974 19.0% Gross margin (GAAP) 18.13% 17.89% 24 bps Impact of inventory valuation adjustment (2) -0.01% 0.00% -1 bps Comparable Gross margin adjusted for Certain Items (Non-GAAP) 18.12% 17.89% 23 bps Impact of currency fluctuations (1) 0.06% 0.00% 6 bps Comparable Gross margin adjusted for Certain Items using a constant currency basis (Non-GAAP) 18.18% 17.89% 29 bps Operating expenses (GAAP) $ 5,463,496 $ 4,786,267 $ 677,229 14.1% Impact of restructuring and transformational project costs (3) (26,034) (47,980) 21,946 45.7% Impact of acquisition-related costs (4) (58,415) (69,658) 11,243 16.1% Impact of bad debt reserve adjustments (5) 4,515 13,499 (8,984) -66.6% Operating expenses adjusted for Certain Items (Non-GAAP) 5,383,562 4,682,128 701,434 15.0% Impact of currency fluctuations (1) 137,670 - 137,670 2.9% Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) $ 5,521,232 $ 4,682,128 $ 839,104 17.9% Operating expense as a percentage of sales (GAAP) 14.48% 14.60% -12 bps Impact of certain items adjustments -0.21% -0.32% 11 bps Adjusted operating expense as a percentage of sales (Non-GAAP) 14.27% 14.28% -1 bps Operating income (GAAP) $ 1,374,975 $ 1,076,591 $ 298,384 27.7% Impact of inventory valuation adjustment (2) (2,571) - (2,571) NM Impact of restructuring and transformational project costs (3) 26,034 47,980 (21,946) -45.7% Impact of acquisition-related costs (4) 58,415 69,658 (11,243) -16.1% Impact of bad debt reserve adjustments (5) (4,515) (13,499) 8,984 66.6% Operating income adjusted for Certain Items (Non-GAAP) 1,452,338 1,180,730 271,608 23.0% Impact of currency fluctuations (1) 3,262 - 3,262 0.3% Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) $ 1,455,600 $ 1,180,730 $ 274,870 23.3%
  • 40. Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items, 2Q23 vs. 2Q22 (Dollars in Thousands, Except for Share and Per Share Data) continued 40 Operating margin (GAAP) 3.65% 3.28% 37 bps Operating margin adjusted for Certain Items (Non-GAAP) 3.85% 3.60% 25 bps Operating margin adjusted for Certain Items using a constant currency basis (Non-GAAP) 3.79% 3.60% 19 bps Interest expense (GAAP) $ 256,192 $ 371,113 $ (114,921) -31.0% Impact of loss on extinguishment of debt - (115,603) 115,603 NM Interest expense adjusted for Certain Items (Non-GAAP) $ 256,192 $ 255,510 $ 682 0.3% Other Expense (Income) (GAAP) $ 345,405 $ (13,928) $ 359,333 NM Impact of other non-routine gains and losses (314,878) - (314,878) NM Other Expense (Income) adjusted for Certain Items (Non-GAAP) $ 30,527 $ (13,928) $ 44,455 NM Net earnings (GAAP) $ 606,784 $ 545,454 $ 61,330 11.2% Impact of inventory valuation adjustment (2) (2,571) - (2,571) NM Impact of restructuring and transformational project costs (3) 26,034 47,980 (21,946) -45.7% Impact of acquisition-related costs (4) 58,415 69,658 (11,243) -16.1% Impact of bad debt reserve adjustments (5) (4,515) (13,499) 8,984 66.6% Impact of loss on extinguishment of debt - 115,603 (115,603) NM Impact of other non-routine gains and losses (6) 314,878 - 314,878 NM Tax impact of inventory valuation adjustment (7) 646 - 646 NM Tax impact of restructuring and transformational project costs (7) (6,538) (12,082) 5,544 45.9% Tax impact of acquisition-related costs (7) (14,670) (17,541) 2,871 16.4% Tax Impact of bad debt reserve adjustments (7) 1,134 3,399 (2,265) -66.6% Tax impact of loss on extinguishment of debt (7) - (29,111) 29,111 NM Tax impact of other non-routine gains and losses (7) (79,075) - (79,075) NM Impact of adjustments to uncertain tax positions - 12,000 (12,000) NM Net earnings adjusted for Certain Items (Non-GAAP) $ 900,522 $ 721,861 $ 178,661 24.8% Diluted earnings per share (GAAP) $ 1.19 $ 1.06 $ 0.13 12.3% Impact of inventory valuation adjustment (2) (0.01) - (0.01) NM Impact of restructuring and transformational project costs (3) 0.05 0.09 (0.04) -44.4% Impact of acquisition-related costs (4) 0.11 0.14 (0.03) -21.4% Impact of bad debt reserve adjustments (5) (0.01) (0.03) 0.02 66.7% Impact of loss on extinguishment of debt - 0.22 (0.22) NM Impact of other non-routine gains and losses (6) 0.62 - 0.62 NM Tax impact of restructuring and transformational project costs (7) (0.01) (0.02) 0.01 50.0% Tax impact of acquisition-related costs (7) (0.03) (0.03) - 0.0% Tax Impact of bad debt reserve adjustments (7) - 0.01 (0.01) NM Tax impact of loss on extinguishment of debt (7) - (0.06) 0.06 NM Tax impact of other non-routine gains and losses (7) (0.15) - (0.15) NM Impact of adjustments to uncertain tax positions - 0.02 (0.02) NM Diluted earnings per share adjusted for Certain Items (Non-GAAP) (8) $ 1.76 $ 1.40 $ 0.36 25.7% Diluted shares outstanding 510,264,473 515,178,910 NM represents that the percentage change is not meaningful. (3) Fiscal 2023 includes $10 million related to restructuring, severance, and facility closure charges and $16 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. Fiscal 2022 includes $28 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy and $20 million related to restructuring charges, severance and facility closure charges. (1) Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on the current year results. (2) Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. (4) Fiscal 2023 includes $52 million of intangible amortization expense and $6 million in acquisition and due diligence costs. Fiscal 2022 includes $48 million of intangible amortization expense and $21 million in acquisition and due diligence costs. (5) Fiscal 2023 and fiscal 2022 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. (7) The tax impact of adjustments for Certain Items is calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred. (8) Individual components of diluted earnings per share may not add up to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. (6) Fiscal 2023 primarily represents a pension settlement charge of $315 million that resulted from the purchase of a nonparticipating single premium group annuity contract that transferred defined benefit plan obligations to an insurer.
  • 41. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) EBITDA represents net earnings (loss) plus (i) interest expense, (ii) income tax expense and benefit, (iii) depreciation and (iv) amortization. The net earnings (loss) component of our EBITDA calculation is impacted by Certain Items that we do not consider representative of our underlying performance. As a result, in the non-GAAP reconciliations below for each period presented, adjusted EBITDA is computed as EBITDA plus the impact of Certain Items, excluding certain items related to interest expense, income taxes, depreciation and amortization. Sysco's management considers growth in this metric to be a measure of overall financial performance that provides useful information to management and investors about the profitability of the business, as it facilitates comparison of performance on a consistent basis from period to period by providing a measurement of recurring factors and trends affecting our business. Additionally, it is a commonly used component metric used to inform on capital structure decisions. Adjusted EBITDA should not be used as a substitute for the most comparable GAAP financial measure in assessing the company’s financial performance for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. In the tables that follow, adjusted EBITDA for each period presented is reconciled to net earnings. 41
  • 42. Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (FY23 vs. FY22) (In Thousands) 42 26-Week Period Ended Dec. 31, 2022 26-Week Period Ended Jan. 1, 2022 Change in Dollars %/bps Change Net earnings (GAAP) $ 606,784 $ 545,454 $ 61,330 11.2% Interest (GAAP) 256,192 371,113 (114,921) -31.0% Income taxes (GAAP) 166,594 173,952 (7,358) -4.2% Depreciation and amortization (GAAP) 378,949 377,763 1,186 0.3% EBITDA (Non-GAAP) $ 1,408,519 $ 1,468,282 $ (59,763) -4.1% Certain Item adjustments: Impact of inventory valuation adjustment (1) (2,571) - (2,571) NM Impact of restructuring and transformational project costs (2) 25,302 47,440 (22,138) -46.7% Impact of acquisition-related costs (3) 6,595 21,306 (14,711) -69.0% Impact of bad debt reserve adjustments (4) (4,515) (13,499) 8,984 66.6% Impact of non-routine gains and losses (5) 314,878 - 314,878 NM EBITDA adjusted for Certain Items (Non-GAAP) (6) $ 1,748,208 $ 1,523,529 $ 224,679 14.7% NM represents that the percentage change is not meaningful. (2) Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy, excluding charges related to accelerated depreciation. (3) Fiscal 2022 includes acquisition and due diligence costs. (4) Fiscal 2022 and fiscal 2021 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. (6) In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $8 million and $3 million or non-cash stock compensation expense of $52 million and $60 million for fiscal 2023 and fiscal 2022, respectively. (1) Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. (5) Fiscal 2023 primarily represents a pension settlement charge of $315 million that resulted from the purchase of a nonparticipating single premium group annuity contract that transferred defined benefit plan obligations to an insurer.
  • 43. Projected Adjusted EPS Guidance Adjusted earnings per share is a non-GAAP financial measure; however, we cannot predict with certainty certain items that would be included in the most directly comparable GAAP measure for the relevant future periods. Due to these uncertainties, we cannot provide a quantitative reconciliation of projected adjusted EPS to the most directly comparable GAAP financial measure without unreasonable effort. However, we expect to calculate adjusted earnings per share for future periods in the same manner as the reconciliations provided for the historical periods herein. 43
  • 44. Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items (In Thousands) Sales $ 48,680,752 $ 50,366,919 $ 55,371,139 $ 58,727,324 $ 60,113,922 $ 52,893,310 $ 51,297,843 $ 68,636,146 Cost of sales (GAAP) $ 40,129,236 $ 41,326,447 $ 44,813,632 $ 47,641,933 $ 48,704,935 $ 42,991,646 $ 41,941,094 $ 56,315,622 Impact of inventory valuation adjustment - - - - - - - (73,224) (17) Cost of sales adjusted for certain items (Non-GAAP) $ 40,129,236 $ 41,326,447 $ 44,813,632 $ 47,641,933 $ 48,704,935 $ 42,991,646 $ 41,941,094 $ 56,242,398 Gross profit (GAAP) $ 8,551,516 $ 9,040,472 $ 10,557,507 $ 11,085,391 $ 11,408,987 $ 9,901,664 $ 9,356,749 $ 12,320,524 Impact of inventory valuation adjustment - - - - - - - 73,224 (17) Gross profit adjusted for certain items (Non-GAAP) $ 8,551,516 $ 9,040,472 $ 10,557,507 $ 11,085,391 $ 11,408,987 $ 9,901,664 $ 9,356,749 $ 12,393,748 Operating expenses (GAAP) $ 7,322,154 $ 7,189,972 $ 8,504,336 $ 8,771,335 $ 9,078,837 $ 9,152,159 $ 7,919,507 $ 9,981,489 Impact of restructuring and transformational projects costs (7,801) (1) (123,134) (1) (161,011) (3) (109,524) (5) (325,300) (7) (371,088) (9) (128,187) (12) (109,532) (15) Impact of acquisition-related costs (554,667) (2) (35,614) (2) (102,049) (4) (108,136) (6) (77,832) (8) (64,793) (10) (79,540) (13) (139,173) (16) Impact of bad debt reserve adjustments - - - - - (323,403) (11) 184,813 (14) 27,999 (14) Impact of MEPP charge - - (35,600) (1,700) - - - - Impact of goodwill impairment - - - - - (203,206) - - Operating expenses adjusted for certain items (Non-GAAP) $ 6,759,686 $ 7,031,224 $ 8,205,676 $ 8,551,975 $ 8,675,705 $ 8,189,669 $ 7,896,593 $ 9,760,783 Operating income (GAAP) $ 1,229,362 $ 1,850,500 $ 2,053,171 $ 2,314,056 $ 2,330,150 $ 749,505 $ 1,437,242 $ 2,339,035 Impact of restructuring and transformational projects costs 7,801 (1) 123,134 (1) 161,011 (3) 109,524 (5) 325,300 (7) 371,088 (9) 128,187 (12) 109,532 (15) Impact of acquisition-related costs 554,667 (2) 35,614 (2) 102,049 (4) 108,136 (6) 77,832 (8) 64,793 (10) 79,540 (13) 139,173 (16) Impact of bad debt reserve adjustments - - - - - 323,403 (11) (184,813) (14) (27,999) (14) Impact of inventory valuation adjustment - - - - - - - 73,224 (17) Impact of MEPP charge - - 35,600 1,700 - - - - Impact of goodwill impairment - - - - - 203,206 - - Operating income adjusted for certain items (Non-GAAP) $ 1,791,830 $ 2,009,248 $ 2,351,831 $ 2,533,416 $ 2,733,282 $ 1,711,995 $ 1,460,156 $ 2,632,965 Interest expense (GAAP) $ 254,807 $ 306,146 $ 302,878 $ 395,483 $ 360,423 $ 408,220 $ 880,137 $ 623,643 Impact of acquisition financing costs (138,422) (18) (123,990) (18) - - - - - - Impact of loss on extinguishment of debt - - - (53,104) - - (293,897) (115,603) Interest expense adjusted for Certain items (Non-GAAP) $ 116,385 $ 182,156 $ 302,878 $ 342,379 $ 360,423 $ 408,220 $ 586,240 $ 508,040 Other (income) expense (GAAP) $ (33,592) $ 111,347 $ (15,937) $ (37,651) $ (36,109) $ 47,901 $ (27,623) $ (31,381) Impact of foreign currency remeasurement and hedging - (146,950) - - - - - - Impact of other non-routine gain and losses - - - - 66,309 (19) (46,968) (19) (10,460) (19) 2,057 (19) Other (income) expense adjusted for certain items (Non-GAAP) $ (33,592) $ (35,603) $ (15,937) $ (37,651) $ 30,200 $ 933 $ (38,083) $ (29,324) As noted in a previous reconciliation within this presentation, our discussion of our results includes certain non-GAAP financial measures, defined as Certain Items. The multi-year trend below represents our diluted earnings per share adjusted for Certain Items. For these periods, our definition of Certain Items included (1) restructuring and transformational project costs consisting of: (a) restructuring charges, (b) expenses associated with our various transformation initiatives and (c) facility closure and severance charges; (2) acquisition- related costs consisting of: (a) intangible amortization expense and (b) acquisition costs and due diligence costs related to our acquisitions; (3) merger and integration planning costs in connection with the merger that had been proposed with US Foods, Inc.; (4) excess bad debt expense; (5) the reduction of bad debt expense previously recognized in fiscal 2020 due to the impact of the COVID-19 pandemic on the collectability of our pre-pandemic trade receivable balances; (6) multi-employer pension (MEPP) withdrawal charge; (7) goodwill and intangibles impairment charges; (8) inventory valuation adjustments related to a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory; (9) gain on the sale of Iowa Premium; (10) acquisition financing costs; (11) loss on extinguishment of debt; (12) repatriation of certain international earnings; (13) loss on foreign currency remeasurement and hedging; (14) tax-related certain items consisting of the impacts of: (a) tax law changes, (b) foreign tax credit benefits and tax rate changes, (c) transition taxes and (d) uncertain tax positions; and (15) other non-routine gains and losses. The company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes. These financial measures should not be used as a substitute for GAAP measures in assessing the company’s results of operations for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. As a result, in the tables that follow, each period presented is adjusted to remove the Certain Items noted above. July 2, 2022 June 27, 2015 July 2, 2016 July 1, 2017 June 30, 2018 June 29, 2019 June 27, 2020 July 3, 2021 Year Ended 44
  • 45. Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items (In Thousands) continued 45 Net earnings (GAAP) $ 686,773 $ 949,622 $ 1,142,503 $ 1,430,766 $ 1,674,271 $ 215,475 $ 524,209 $ 1,358,768 Impact of restructuring and transformational projects costs 7,801 (1) 123,134 (1) 161,011 (3) 109,524 (5) 325,300 (7) 371,088 (9) 128,187 (12) 109,532 (15) Impact of acquisition-related costs 554,667 (2) 35,614 (2) 102,049 (4) 108,136 (6) 77,832 (8) 64,793 (10) 79,540 (13) 139,173 (16) Impact of bad debt reserve adjustments - - - - - 323,403 (11) (184,813) (14) (27,999) (14) Impact of inventory valuation adjustment - - - - - - - 73,224 (17) Impact of MEPP charge - - 35,600 1,700 - - - - Impact of goodwill impairment - - - - - 203,206 - - Impact of acquisition financing costs 138,422 (18) 123,990 (18) - - - - - - Impact of loss on extinguishment of debt - - - 53,104 - - 293,897 115,603 Impact of foreign currency remeasurement and hedging - 146,950 - - - - - - Impact of other non-routine gain and losses - - - - (66,309) (19) 46,968 (19) 10,460 (19) (2,057) (19) Tax impact of inventory valuation adjustment (21) - - - - - - - (18,902) Tax impact of MEPP charge (21) - - (11,903) (573) - - - - Tax impact of loss on extinguishment of debt (21) - - - (18,225) - - (79,323) (29,841) Tax impact of restructuring and transformational project cost (21) (3,200) (47,333) (51,184) (34,024) (81,722) (90,683) (32,416) (28,274) Tax impact of other non-routine gain and losses (21) - - - - 18,119 (12,644) (2,692) 531 Tax impact of acquisition-related costs (21) (227,518) (13,690) (19,003) (26,172) (19,553) (13,641) (19,675) (35,926) Tax impact of bad debt reserves adjustments (21) - - - - - (76,864) 46,260 7,228 Tax impact of acquisition financing costs (21) (56,779) (47,662) - - - - - - Tax impact of foreign currency remeasurement and hedging (21) - (56,488) - - - - - - Tax impact of Pension Plan contribution (21) - - - (44,424) - - - - Impact of foreign tax credit benefit - - - - (95,067) - - - Impact of US transition tax - - - 80,000 17,516 - - - Impact of repatriation of certain international earnings - - - 24,208 (20) - - - - Impact of US balance sheet remeasurement from tax law change - - - (14,477) - - - - Impact of foreign tax rate change - - - (9,706) 6,464 924 (23,197) - Impact of adjustments to uncertain tax positions - - - - - - - 12,000 Net earnings adjusted for Certain Items (Non-GAAP) $ 1,100,166 $ 1,214,137 $ 1,359,073 $ 1,659,837 $ 1,856,851 $ 1,032,025 $ 740,437 $ 1,673,060 Diluted earnings per share (GAAP) $ 1.15 $ 1.64 $ 2.08 $ 2.70 $ 3.20 $ 0.42 $ 1.02 $ 2.64 Impact of restructuring and transformational projects costs 0.01 (1) 0.21 (1) 0.29 (3) 0.21 (5) 0.62 (7) 0.72 (9) 0.25 (12) 0.21 (15) Impact of acquisition-related costs 0.93 (2) 0.06 (2) 0.19 (4) 0.20 (6) 0.15 (8) 0.13 (10) 0.15 (13) 0.27 (16) Impact of bad debt reserve adjustments - - - - - 0.63 (11) (0.36) (14) (0.05) (14) Impact of inventory valuation adjustment - - - - - - - 0.14 (17) Impact of MEPP charge - - 0.06 - - - - - Impact of goodwill impairment - - - - - 0.40 - - Impact of acquisition financing costs 0.23 (18) 0.21 (18) - - - - - - Impact of loss on extinguishment of debt - - - 0.10 - - 0.57 0.22 Impact of foreign currency remeasurement and hedging - 0.25 - - - - - - Impact of other non-routine gain and losses - - - - (0.13) (19) 0.09 (19) 0.02 (19) -
  • 46. Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items (In Thousands) continued 46 Tax impact of inventory valuation adjustment (21) - - - - - - - (0.04) Tax impact of MEPP charge (21) - - (0.02) - - - - - Tax impact of loss on extinguishment of debt (21) - - - (0.03) - - (0.15) (0.06) Tax impact of restructuring and transformational project cost (21) (0.01) (0.08) (0.09) (0.06) (0.16) (0.18) (0.06) (0.06) Tax impact of other non-routine gain and losses (21) - - - - 0.03 (0.02) (0.01) - Tax impact of acquisition-related costs (21) (0.38) (0.02) (0.03) (0.05) (0.04) (0.03) (0.04) (0.07) Tax impact of bad debt reserves adjustments (21) - - - - - (0.15) 0.09 0.01 Tax impact of acquisition financing costs (21) (0.10) (0.08) - - - - - - Tax impact of foreign currency remeasurement and hedging (21) - (0.10) - - - - - - Tax impact of Pension Plan contribution (21) - - - (0.08) - - - - Impact of foreign tax credit benefit - - - - (0.18) - - - Impact of US transition tax - - - 0.15 0.03 - - - Impact of repatriation of certain international earnings - - - 0.05 (20) - - - - Impact of US balance sheet remeasurement from tax law change - - - (0.03) - - - - Impact of foreign tax rate change - - - (0.02) 0.01 - (0.05) - Impact of adjustments to uncertain tax positions - - - - - - - 0.02 Diluted EPS adjusted for certain items (Non-GAAP) (22) $ 1.84 $ 2.10 $ 2.48 $ 3.14 $ 3.55 $ 2.01 $ 1.44 $ 3.25 Diluted shares outstanding 596,849,034 577,391,406 548,545,027 529,089,854 523,381,124 514,025,974 513,555,088 514,005,827 (22) Individual components of diluted earnings per share may not add up to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. (15) Includes $61 million related to restructuring, severance, and facility closure charges and $49 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. (16) Includes $106 million of intangible amortization expense and $33 million in acquisition and due diligence costs. (17) Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. (18) Includes US Foods financing costs (first quarter 2016 and fiscal 2015 only) and Brakes acquisition financing costs (third and fourth quarter fiscal 2016 only) (19) Fiscal 2019 represents a gain on the sale of the Iowa Premium business. Fiscal 2020 represents the impairment of assets held for sale. Fiscal 2021 includes $23 million of loss from the sale of businesses and $9 million of gains on sale of property and other non- recurring gains and losses. Fiscal 2022 represents a gain on the sale of property. (20) Represents the benefit from tax credits obtained through the repatriation of certain international earnings, partially offset by foreign withholding tax incurred. (21) The tax impact of adjustments for Certain Items are calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred. (11) Represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic. (12) Includes $72 million related to restructuring, facility closure, and severance charges and $56 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. (13) Represents $74 million of intangible amortization expense from the Brakes Acquisition, which is included in the results of International Foodservice, as well as $6 million of due diligence and integration costs related to Greco and Sons. (14) Represents the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. (6) Includes $67 million related to intangible amortization expense from the Brakes Acquisition, which is included in the results of Brakes, $18 million in integration costs, and a $14 million write-off for an intangible asset due to restructuring in France. (7) Includes $174 million related to severance, restructuring and facility closure charges in Europe and Canada and at Sysco's Global Shared Service Center, of which $61 million relates to our France restructuring (i.e. Our integration of Brake France and Davigel into Sysco France), and $151 million related to various transformation initiative costs, of which $18 million relates to accelerated depreciation with regard to software that was replaced. (10) Includes $65 million related to intangible amortization expense from the Brakes Acquisition, which is included in the results of International Foodservice. (1) Includes severance charges, professional fees on 3-year financial objectives, facility closure costs and costs associated with our revised business technology strategy (9) Includes $265 million related to restructuring, severance and facility closure charges, of which $99 million relates to severance charges, and $106 million related to various transformation initiative costs, primarily consisting of changes to our business technology (8) Includes $77 million related to intangible amortization expense from the Brakes Acquisition, which is included in the results of International Foodservice. (4) Includes $76 million related to intangible amortization expense from the Brakes Acquisition, which is included in the results of Brakes, and $24 million in integration costs. (2) Includes US Foods merger and integration planning and transaction costs (first quarter 2016 and fiscal 2015 only) and Brakes acquisition transaction costs (third and fourth quarters fiscal 2016 only) (5) Includes $70 million related to business technology costs and professional fees on three-year financial objectives and $33 million related to restructuring charges. (3) Includes $111 million in accelerated depreciation associated with our revised business technology strategy and $46 million related to restructuring expenses within our Brakes operations, which includes costs to convert to legacy systems in conjunction with our revised business technology strategy, professional fees on 3-year financial objectives, & severance charges.
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news
news