Sysco Corporation · NYSE:SYY

Sysco — 16th Annual ICR XChange Conference (January 2014)

18 slides from Sysco's conference presentation, Jan 14, 2014

  1. Slide 1: 16th Annual ICR XChange Conference

    16th Annual ICR XChange Bill DeLaney Chris Kreidler Conference President, Chief Executive Vice Executive Officer President, Chief January 14, 2014 Financial Officer

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements Statements included in this document and the related oral presentation that look forward in time or that express beliefs, expectations, or hopes are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking state

  3. Slide 3: Bill DeLaney, President & CEO

    Bill DeLaney President & CEO Good things ‘come from

  4. Slide 4: Sysco's Growth Has Outpaced the Market

    Sysco’s Growth Has Outpaced the Market Sales Growth (CAGR for the period shown) 25% Market 20.3% 20% Sysco 17.1% 15% 10.9% 9.8% 10% 6.9% 6.8% 6.7% 5.0% 5% 3.8% 2.4% 0% 1973-1980 1981-1990 1991-2000 2001-2010 2011-2012 1.6X 2.9 2.0X 1.8X 2.8X Source: Industry data adjusted to Sysco’s fiscal year basi

  5. Slide 5: We Continue to Expand our Capabilities

    We Continue to Expand our Capabilities 2013 Announced Intent to 2011 Merge with Formed US Foods Sysco 2002 Ventures Expansion of Canadian operations 2000 Acquired first produce company 1985 2012 SYGMA Acquired 2009 First formed European acquisition 2001 Imports in Ireland Acquired Guest Supply 1999

  6. Slide 6: Key Areas of Strategic Focus

    Key Areas of Strategic Focus Sustainable Profitable Operating Growth Margin Asset Optimization and Free Cash Flow 6

  7. Slide 7: Key Initiatives

    Key Initiatives Customer Insights Sysco Ventures - Loyalty - Platform - Segment Focus - Technology Solutions Enterprise - Corporate Brand - iCare Structure - Merchandising - Marketing - Operations Sales Channels - Finance & HR Category Management - Sysco 360 (CRM) - Optimize Product - Inside Sales A

  8. Slide 8: Bringing Together the Best of Both

    Two Great Companies Bringing Together the Best of Both 8

  9. Slide 9: Consistent with Sysco's Strategic Focus

    Consistent with Sysco’s Strategic Focus Sustainable Operating Profitable Margin Growth Reduce operating Leverage customer costs insights Lower product costs Enhance and expand Continue to develop channels Sysco Ventures Increase customer Further develop retention enterprise structure Execute fold-in

  10. Slide 10: A Transformational Acquisition

    A Transformational Acquisition Benefits all stakeholders  Combined strengths deliver greater value, more services and innovation for customers Customers  Strengthen our role as our customers’ most valued and trusted business partner  Achieve shared efficiencies with suppliers Suppliers  Platform

  11. Slide 11: Chris Kreidler, EVP & CFO

    Chris Kreidler EVP & CFO Good things ‘come from

  12. Slide 12: Transaction Financing Structure

    Transaction Financing Structure Approximate Total Transaction Value: Equity 3.0B  Equity holders of US Foods will own approx. 87 million shares or, 13%, of combined company at closing, and  A representative of each of US Foods’ majority shareholders will join Sysco’s Board of Directors Cash 0.5B U

  13. Slide 13: Synergy Estimates are Realistic and Achievable

    Synergy Estimates are Realistic and Achievable At least $600 million in annual synergies after three to four years in five key areas, including:  General & Administrative  Cost of Goods Sold  Warehouse and Distribution Productivity  Selling and Field Productivity  Distribution Network Current e

  14. Slide 14: At Least $600 Million in Estimated Annual Synergies

    At Least $600 Million in Estimated Annual Synergies Identify duplicative General & resources Admin. Network rationalization Leverage combined Delivery Distribution COGS spend Network consolidation & Determine efficient routing combined category Field leadership Synergy management approach Wareh

  15. Slide 15: Confident in Achieving a Successful Integration

    Confident in Achieving a Successful Integration Integration  Announced leadership team  Members will include key employees from both companies Team  Leverage experience and partnership with McKinsey  Committed to achievement of synergies  Annual cost synergies of at least $600 million Synergies

  16. Slide 16: Integration Leadership Team Announced

    Integration Leadership Team Announced Steering Committee Sr. Execs from Both  Overall leadership of the integration Companies Integration Leader (Chris Kreidler) Integration Management Office  IMO will lead, plan and track the (IMO) integration Business teams  Day 1 readiness Track 1 Track 2 Trac

  17. Slide 17: Combination Creates Significant Shareholder Value

    Combination Creates Significant Shareholder Value  Immediately accretive to earnings after adjusting for Earnings transaction-related costs and amortization of intangibles  Annual synergies of at least $600 million realized after Synergies three to four years  Approximate sales of $65 billion Cas

  18. Slide 18: Good things come from Sysco

    Good things Sysco od ‘come from

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