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December 14, 2009
Bill DeLaneyChief Executive Officer
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3
The global leader in foodservice distribution
Forty year history of consistent success
FY 2009 sales of $37 billion
Serve $200+ billion foodservice and hospitality
market
Commitment to operational excellence
Syscos Leadership Position
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Leadership Position (Continued)
4
Broad reach - 400,000 customers
Depth of product selection - over 400,000products, including approximately 40,000 Sysco
Brand products
47,000 talented and committed employees
Deliver over 1.2 billion cases of food and related
products every year
Only major publicly traded foodservicedistribution company in the US
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10%Restaurants
62%Hospitals &Nursing Homes
Schools &Colleges 5%
Hotels &Motels 6%
Other
16%
11%
Customer Type
Sysco has a diversified customer mix
FY09 Sales By Customer Type
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18%
18%
14%11%
10%
8%
8%
5%
3%3%
Products
Sysco has a diversified product mix
17%
14%10%
10%
8%
8%
5%
4%3%
2%
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Syscos Competitive Landscape($200+ Billion Primary Market)
Sysco17%
US
Foodservice9%
PFG: 5%
RemainingTop 5013%
Other56%
Market Overview
Source: 2008 ID Access Report
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Competitive Advantages
Approximately 8,000 Marketing Associates
50,000 Comprehensive Business Reviews Annually
Premier Customer Service
98% service rate
Differentiated Brand
Supply Chain Initiatives
XY Routing
Warehouse Systems
RDCs
Transportation Management
Continuous Investment in the Business Substantial Operating Cash Flow
Strong Balance Sheet
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Sysco History 1970s
Foodservice industry early years
Completed 30 acquisitions
FY79 industry size = $49B
FY79 SYY sales of $1B
FY79 operating income = $31M
FY79 net income = $16M
10
Sysco market share2%
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Sysco History 1980s
Completed 47 acquisitions
Acquisition of CFS Continental filled
out U.S. geographical presence
FY89 industry size = $87B
FY89 SYY sales of $7B
FY89 SYY operating income = $229M
FY89 SYY net income = $108M
11
Sysco market share8%
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10 Year CAGR Sysco vs. Total Industry (1)
Note: (1) Foodservice industry sales were converted to a Sysco fiscal year basis by taking the average of current and prior calendar years.Sources: Technomic, Sysco internal reporting
0%
5%
10%
15%
20%
25%
1980s 1990s 2000s
20%
10%
7%6%
5%
3%
SYY
Industry
Syscos Growth Has Outpaced theIndustry
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Sysco Overview
A Brief Look Back First Four Decades as a Public Company
Update Current Business Environment and Outlook
Moving Forward
15
Agenda
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Moving Forward
Sysco remains committed to enhancing economic value
Improve daily execution by leveraging existing competitive
advantages
Optimize core business by transforming key businessprocesses
Explore and assess opportunities to expand core business
and enhance capabilities
o Adjacent businesses
o New markets (e.g. international)
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Optimizing Our Core Business
Balance market share growth and profitability
Leverage our scale advantages while remaining highly
responsive to customer needs
More effectively integrate enterprise-wide capabilities
Utilize technology to facilitate business transformation
Invest in value added capabilities
Consolidate redundant processes
Reduce complexity
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Focus on Core Business
Enhance existing customer
relationships
Retention of currentaccounts
Account penetration
Grow number of customers
Grow by acquisitions
Improve productivity in all
aspects of the business
Syscos Primary Market =$200+ Billion
Illustration
$37 BSysco FY09
Sales
Opportunitiesto Grow Share
of Wallet
Substantial opportunities in the current market
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212121
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Who We Were
Founded by John Baugh in 1969,SYSCO a Systems and ServicesCompany became a public companyon March 3, 1970
A company founded on strong values,ethics, and the overall goal of helpingour customers succeed
By the late 70s, Sysco Employed 1,100 sales
representatives out of a 5,200-person staff;
Served approximately 90,000
customers;
Delivered frozen foods, cannedgoods, dry groceries, and relatednonfood items to customers in 41states
2
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4
A History of Growth and Innovation
Jan. 1981 Listing on the
NYSE
1984 -SYGMA
wascreated
1986 Introducedline of disposable
ware
1988 AcquiredCFS Continental tomore effectively
serve thecontiguous US
1994 ARAMARKawardedSysco
significantadditionalbusiness
March 2002 acquisition ofSERCA brings
Canadianpresence
2004 BusinessReviews
introduced; Front
Royal RDC opened
2009 Acquisitionof Pallas Foods
Completed 20+acquisitions
1970-1979:Completed 30acquisitions
1980-1989:Completed 47acquisitions
1990-1999:Completed 22acquisitions
2000-Present:Completed 54acquisitions
1983 Acquired
Nobel
From a group of entrepreneurs starting an industry to $1 billion inannualized earnings Sysco delivers
March 1970 First initialpublic stock
offering
1980 CreatedSyscoBrand
2000 Acquired
FreshPoint2008 2nd RDC
opened
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5
Broadline - 79%
SYGMA -13%
Other -8%
Of the two-thirds salesthat are restaurants,approximately 50% areindependentrestaurants and 50%are chain restaurants
On average, Sysco has35% - 40% of its bestindependentcustomers share ofwallet
SYGMA serves only
chain customers
Broadline, our corebusiness, servesmultiple customer
types
Business Segments
Sysco serves a broad mix of customers and products
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Who We Are Today
Over 400,000 products, including approximately 40,000 Sysco Brand products
186 distribution facilities serving approximately 400,000 customers
Leading foodservice provider in North America
Deliver over 1.2 billion cases of food and related products every year
6
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Operational Excellence
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8
0
5
10
15
20
25
30
35
40
FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Sysco Sales($ billions)
20-year CAGR 9%
Strong Sales Grow th
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Operating Income
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Operating Income($ billions)
9
20-year CAGR 11%
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Cases Per Error
10
0
200
400
600
800
1,000
1,200
1,400
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
381
523
628
828
1,055 1,0621,122
1,272
1,359
Cases
Cases Per Error1
Note: (1) One error per number of cases shipped. For example, in FY01, Sysco experienced one error for every 381 cases shipped, butreduced that rate to one error for every 1,359 cases shipped in FY09.
Cases Per Error has improved 257% since FY01
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Warehouse Cases Per Manhour
11
40
60
80
100
120
140
FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
8184
88
93
97
103106
112
117
124
Warehouse Cases Per Manhour has improved 53% since FY00
Note: Data for Sysco US Broadline companies
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Cases Per Trip
12
500
550
600
650
700
750
800
FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
585
599
614631
641
659
678688
700711
Improvements drive real savings
Cases Per Trip has improved 22% since FY00
Note: Data for Sysco US Broadline companies
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Case Per Trip Improvement
13
For example, if 50,000cases are delivered each
day at a typical USBroadline company
FY2009:711 casesper trip =70 trucks
FY2000:585 casesper trip =85 trucks
Approximately 15 lesstrucks on the road eachday at 72 US Broadline
facilities
Results in 1,080 fewer
routes driven each day
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Inventory Shrink
14
0.00%
0.05%
0.10%
0.15%
0.20%
0.25%
0.30%
FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
0.28%
0.23%
0.19%
0.16%0.15%
0.13%
0.14%0.15%
0.13%0.12%
$42million insavingsin FY091
Improvement over time
Note: Shrink percentages shown reflect U.S. Broadline only.(1) Savings based on comparison of actual shrink expense to proforma expense at FY00 levels.
Shrink Expense has decreased 57% since FY00
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Focus On Safety Yields Benefits
15
Note: Industry rates for 2008 and beyond have not yet been published.(1) Data reflects Syscos fiscal year(2) Data reflects calendar year(3) Annualized data as of 1st fiscal quarter 2010
2003 2004 2005 2006 2007 2008 20091Q
FY2010(3)
Sysco Injury Rates(1) 7.6 7.3 6.4 6.9 6.3 5.1 4.8 3.3
Food Industry Injury Rates(2) 7.5 8.2 7.8 7.0 6.8
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Annual Injuries per100 Employees
OSHA Recordable Rate Trending
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Case Volumes Stabilizing
16
Update: Good News
Percent Change in Case VolumeJune 28 November 28
FY10 Change
July 25 Aug. 22 Sept. 26 Oct. 24
0%
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Were Not Standing Still
17
Operations
Technology
Current initiatives deliver near-term incremental value
Continuous improvement is at the core of what we do every day
Leverage SalesGrowth and Take
Market Share
Marketing
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Marketing Initiatives
Create rich web interface to enhancecustomer experience
Serve new segment of customersseeking better purchasing tools
18
Improved Order
Management System
ImplementSophisticated Pricing
Strategy
Guidance for marketing associates tooptimize pricing by market and customer
Leverage Technologyto StrengthenPartnerships
Web portal creates opportunity to
broaden access to ChefEx and Supplies onthe Fly partnerships
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Improve Existing Operating Processes
19
Standardize and simplify warehouse system settings across alloperating companies
Utilize discrete engineered labor standards for warehouse
activities
Complete rollout of activity-based compensation
Reduce miles driven through improved route mapping
Equipment replacement
More fuel-efficient equipment
Different equipment providing efficiency savings
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Laying The Foundation For Future Growth
Syscos core principles The value of the Sysco enterprise is more important than any one
Operating Company and therefore must be optimized first
Continually improve efficiency and productivity
Provide customers the finest quality products at the best price Help our customers succeed
Every area of the company is focused on continuous improvement
Expect to grow sales faster than the industry Expect to grow earnings faster than sales
Current initiatives deliver near-term value
Business Transformation changes the game
21
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222222
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Larry PulliamExecutive Vice President Foodservice Operations
December 14, 2009
O C b l
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Leveraging Our Capabilities
2
Utilize Broadline capabilities tooperate more efficiently
Develop processes to helpcustomers succeed
Identify opportunities forsavings
Utilize scale more effectively
Provide opportunities for profitable sales growth
Contract Sales
SYGMA
Specialty
Companies (Meat,Produce, IFG,Guest Supply)
C S l G h O i i
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Contract Sales Grow th Opportunities
3
Source: Technomic, Inc.; internal dataNote: (1) Syscos Primary Market includes the United States and Canada. Foodservice Independents include small chains.
Restaurants
Travel & Leisure
Education
Healthcare
Business & Industry
Other U.S.
Canada
Syscos Primary Market1
$200+ BillionU.S. Restaurants $110BChain 66%Independents 34%
A i l P i N B i
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Aggressively Pursuing New Business
4
New Business Targeted
Potential Opportunity WithExisting Customers
Pursuing
Profitable SalesGrowth
N T l T H l C t S d
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New Tools To Help Customers Succeed
Customer
Supply Chain
SpecialtyCompanies
Sourcing
5
Sysco
BroadlineCompanies
One face to the customer
Corporate Multi Unit Business Review
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pProcess
ProactivelyEngage
Customers
Leverage CoreCapabilities
Follow Through onCommitments
Grow Share ofWallet
6
Meet customers needs to retain and grow business
Supply Chain Sourcing Specialty Companies
SYGMA A d S i lt C i
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SYGMA And Specialty Companies
7
Specialty Meat Companies
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Imp o ing P ofitabilit at SYGMA
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Improving Profitability at SYGMA
9
Profitable SalesGrowth
OperatingEfficiencies andExpense Reduction
Increase organic growth opportunities
Annual business reviews with top customers
Increase warehouse productivity
Decrease occupancy costs per case/increaseenergy savings
Reduce miles driven
Optimize distribution center capacity
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Specialty Meat Companies
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Specialty Meat Companies
11
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Specialty Produce Companies
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Specialty Produce Companies
13
In 2000, Sysco began the specialty produce division by acquiring FreshPoint
Since 2000, FreshPoint has acquired and integrated 13 produce distributors
Answered certain customers need for more frequent deliveries ofperishable produce products, customized value added programs and fieldto plate food safety
2000 2004 2006 2007 2008 2009
Brothers Produce
Incredible Fresh
TR Produce
Caro & Longo
Nashville Tomato
2005
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FreshPoint Initiatives
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FreshPoint Initiatives
15
Leverage Value Added network to support Sysco and SYGMA toobtain Corporate Multi Unit (CMU) business
Leverage central procurement and food safety capabilities to grow
sales with CMU accounts
Review acquisition growth opportunities to increase distributioncapabilities
Deploy tomato repack production and traceability system in allFreshPoint value added facilities
Guest Supply
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Guest Supply
16
Profitable SalesGrowth
OperatingEfficiencies
Complete efficiency improvement program at allwarehouses
Reduce inventories through SKU rationalization Continue consolidation of distribution centers
Increase sales to management companies
Create buying guide to increase account penetration,while lowering selling expense
Target growth opportunities in Asia market
International
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International
17
Profitable SalesGrowth
OperatingEfficiencies
Sell deeper intoexisting accounts
Expand into newcountries andconcepts
Improve purchasingprocess to reduceinventory levels
Optimize capacityand configuration ofexisting facilities toaccommodate growth
Focus on expanded
relationships withother Sysco entities
IFG Pallas
Improve operatingefficiencies by applyingSysco processes andstandards
Excellent customer service
Quality management team
Market leader in Ireland
Approximately $200Mannualized sales
Opportunity to align withSysco Brand products
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191919
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December 14, 2009
Bill DaySenior Vice President
Merchandising and Supply Chain Management
Delivering Value To Our KeyS k h ld
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Stakeholders
2
Merchandising
Sourcing
Demand Planning & Inventory Management
RDC Strategy and Operations
Transportation Management
Supply Chain Management
Merchandising and Supply Chain Organization
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Create Value for Key Stakeholders
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Create Value for Key Stakeholders
StrengthenSupplier
Relationships
Build strategicpartnerships
Categorymanagement
End-to-end costreduction
Collaborative
planning
SupportOperatingCompanies
Improve pricingstrategy
Support Sysco Brand Marketing Associate
support
MerchandisingAdvisory Council
ReinvigorateSysco Brand
Strengthen productofferings
Price Brand productsrelative to themarket
Quality AssuranceProgram
MVP Marketing
4
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Perform Category Management
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Perform Category Management
CompetitiveAdvantage
Categoryreview andassessment
Identifycompetitivegaps
Ensure costalignment
Improvepricing
strategy
Prioritizenew Sysco
Brand
categories
Buildsupplier
categorycaptain
structure
8
New Partnerships Add Value
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New Partnerships Add Value
9
Supplies on the Fly ECOLAB
More than 10,000 newaccounts
Estimated $11 to $12billion market
$260 million in SyscoU.S. Broadline sales
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Redefine Sysco Brand Strategy
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Redefine Sysco Brand Strategy
11
Historically, Sysco Brand experienced rapid growth and was verysuccessful
In recent years, we lost focus on the Brand, but have recentlyestablished a strategy to reinvigorate the Brand, including:
Simplifying and standardizing the Brand for Marketing Associatesand our customers;
Rationalizing underperforming brands and products, targetingelimination of more than 10 brands and hundreds of SKUs;
Updating training and communication aimed at our MarketingAssociates with emphasis on Quality Assurance Programs;
Redefining and updating our core brands;
Evaluating and strengthening our currentproduct offerings.
This renewed focus on the Brand has been
well received by our Operating Companies,our Marketing Associates and our suppliers
Sysco Brand Adds Significant Value
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Sysco Brand Adds Significant Value
12
Suppliers
High productstandards
Access to Syscos
supply chain andsales force
Provides a levelplaying field for largeand small suppliers
Creates a dimensionof exclusivity
Customers
Product quality equalor better thanleading brands
Confidence that theproduct ordered isthe product received
Best value savingtime and money
Sysco
Differentiates Syscofrom competitors
Produces higher
operating margins Provides economicadvantage
Instills confidence inour sales force
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Quality Assurance Program
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Q y g
Roles andResponsibilities
Food safety
Product quality
Regulatory
compliance Agricultural
sustainability
Primary FunctionsTasks
Define productrequirements
Qualify supplier
capabilities Continue to monitorfood safety andquality performance
Ensure regulatorycompliance of allSysco Brand products
Current Areas ofFocus
Support Sysco Branddevelopment/management
Execute Sysco Brandadvantageevaluations
Reassess/realignBrand Portfolio
Monitor and manageimpact of upcomingfood safety legislation
14
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RDC Network
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17
OpCoRDC
*ProjectedCross Docking
DALLAS/ FORTWORTH, TX AREA*
ATLANTA, GA*
FRONT ROYAL, VA
ALACHUA, FL
SALT LAKE CITY , UT*
HAMLET, IN
RDC Service Levels - Northeast
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RDC Service Levels Northeast
Northeast Network Customer Service Levels (Cases)RDC Items vs. Supplier Direct
98.5%
98.7%
98.9%
99.1%
99.3%
99.5%
99.7%
99.9%
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51
Fiscal Week
2009 RDC Service Level (Pieces)
2009 Supplier Direct Service Level
RDC Service Levels - South
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19
South Network Customer Service Level (Cases)RDC Items vs. Supplier Direct
98.9%
99.1%
99.3%
99.5%
99.7%
99.9%
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51
Fiscal Week
2009 RDC Service Level (Pieces)
2009 Supplier Direct Service Level
Transportation Key Metrics
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20
U.S. Broadline
FY 2006 FY 2009
Sysco controlled
freight 48.20% 52.30%
2006 2007 2008 2009
Cumulative LogisticsSavings Increase,
2006-2009
-4.6% 14.6% 28.4% 43.8%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Cumulative Logistics Savings Increase,2006-2009
Transportation Management
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21
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Intermodal Rail Total
Gallons Used Gallons Saved
Fuel Savings achieved through utilization of alternative modes
In
millions
1
Note: (1) Reflects savings compared to shipment using truck transportation onlyIntermodal refers to the combination of rail and truck shipping methods.
FY 2009 Fuel Savings
RDC Capabilities and Benefits
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22
Northeast RDC
Ships and receives3 million cases weekly
to 16 OpCos
Designed to performapprox. 300 cases per
direct man hour,performing approx. 440
Currently receiving 20-30inbound railcars per week
Upgrading de-palletizingsystems to enhance
productivity
South RDC
Ships and receives1.5 million cases weekly
to 9 OpCos
Designed to performapprox. 360 cases per
direct man hour,performing approx. 470
Currently receiving 8-12inbound railcars per week
Future RDC
Automated storage andretrieval systems for drywarehouse and freezer
Designed to perform approx.550-600 cases per direct
man hour
Smaller building footprintcreates high cubic capacity,greater productivity, and
energy efficiency
More advanced de-palletizingsystem and use of AGVs forpallet transportation
Location presents additionalcross-docking and freightforwarding opportunities
Inside the RDC
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23
Inside the RDC
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Inside the RDC
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25
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2727
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This Is More Than Just An IT Project
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SAP is the foundation
Innovative
Processes
Vision
Transformation
Develop a foundation that isbold and transformational
Capture the most benefits with
the least complexity
Generate significant ROI
Create value for shareholders,
employees and customers
Key Project Themes
3
Guiding Principles
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Create strategic competitive advantage
Optimize the core business by reducing complexity, redundancy andinefficiency of business processes and supporting technologies
Operate as a seamless single collaborative entity
Redefine the customer experience to further differentiate our productsand services
Implement processes and technology to enable future business growth
4
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Deployment Approach
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One Broadline operating company deployed in early 2011
A five month stabilization period follows
Thereafter, deploy waves of multiple operating companiesthrough 2013
Broadline companies will be deployed first
RDCs, SYGMA and Canada will be deployed last
6
Sales Force Productivity
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7
Current Daily MA Activities
Administration40% Sales 25%
Travel 25%
Consultation10%
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Profitably Manage Customer Segments
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Enhanced OrderManagement
System
CSR
Inside Sales
New MarketManager
Customer Resource
Manager
BusinessSpecialist
Customer Service Models:
High Touch
Frequent Customer ResourceManager attention
Provides most visibility intoCustomers spend andbuying patterns so that wecan better assist customers
Provides most customerinteraction options
Low
Med
High
Med ium Touch
Leverage centralized salesforce to lower the cost to
serve
Provides 24/7 customerinteraction channel
Requires limited MarketingAssociate focus or time
New Market Manager andCustomer Resource Managerto drive share of wallet
Low Touch
Lower cost-to-serve
Requires less CustomerResource Manager attention
Provides 24/7 customerinteraction channelWeb chat Guided selling
9
Lowering cost to serve expands new sales opportunities
Current eSysco Web Interface
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10
Handles significant sales volume, but updates are necessary to grow
sales and enhance customer experience
Future Web Interface
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Will provide a rich online customer experience
Product Information
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Detailed information about product nutrition, similar products,recipes and videos
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Data Management ImprovesTransparency
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14
Make better decisions faster
What We Expect The Future State ToBe
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Suppliers more involved in planning processes
Enhanced category management Sysco is easier to do business with
15
Increased opportunities for profitable salesgrowth
Increased productivity and efficiency Better information to make better decisions
Consistent, easy access to information A rich, significantly improved customer
experience
Sysco is easier to do business with
Sysco
Customers
Key Suppliers
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171717
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Financial Perspective
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Syscos History
Strong industry growth
Sales growth in excess ofindustry growth
Attractive earnings growth
Continuous investment in the
business
Solid balance sheet
Strong ROIC
2
Remain committed to continuous improvement
Syscos Future
Moderate industry growth
Sales growth in excess ofindustry growth
Attractive earnings growth
Continuous investment in the
business
Solid balance sheet
Strong ROIC
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Syscos HistoryFinancial Perspective
Steady Industry Sales Grow th
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4
0
50
100
150
200
250
FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
20-year CAGR 5%
Industry Sales($ billions)
Strong Sysco Sales Grow th
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5
0
5
10
15
20
25
30
35
40
FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
20-year CAGR 9%
Sysco Sales($ billions)
Sysco has outpaced industry growth by ~4 points annually
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Sustained Earnings Grow th
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0.0
0.2
0.4
0.6
0.8
1.0
1.2
FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
7
Sysco has NEVER reported an annual loss in its 40-Year History
20-year CAGR 12%
Sysco Net Earnings($ billions)
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Top Tier Return On Invested Capital
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9
Return on Invested Capital
0%
5%
10%
15%
20%
25%
FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
9
LTM (1) S&P
Average 13%
Note: (1) Last twelve months as of 9/30/09
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Syscos FutureFinancial Perspective
Sysco Has Consistently Grown FasterThan The Industry
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13
Indexed Sales Grow th5-Year CAGRs
Industry growth ismoderating
0%
5%
10%
15%
20%
25%
FY'75-'80 FY'80-'85 FY'85-'90 FY'90-'95 FY'95-'00 FY'00-'05 FY'05-'10
(E)
18%17%
24%
10% 10% 9%
4%
11%
4%
7%
4%
6%
5%
2%
SYY Industry
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Business Transformation Provides NewOpportunities
Provides Path To Improved Profitability
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Redefine sales and marketingfunctions to improve execution
Standardize and centralizefunctions to reduce complexity
Capture and utilize data toincrease transparency
15
Provides Path To Improved Profitability
IncreaseSales
Reduce
OperatingCosts
MakeBetter
Decisions
Business Transformation Requires Multi-Year Investment
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16
0
50
100
150
200
250
300
350
FY09 FY10 FY11 FY12 FY13
Operating Expense Capital Expenditures
90
275
280
185
70
Total cash expendituresestimated to be $900 million,including $750-$800 million in
incremental spend
Estimated Total Cash Expenditures($ millions)
Business Transformation Yields SignificantLong-Term BenefitsCosts will exceed benefits in early phase of implementation
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17
2010 2011 2012 2013 2014 2015IncrementalEPS Impact ($0.05) ($0.09) ($0.17) $0.00 $0.23 $0.34
Cumulative EPS
Impact ($0.07) ($0.15) ($0.33) ($0.33) ($0.10) $0.24
EPS Impact YOY ($0.04) ($0.04) ($0.09) $0.17 $0.23 $0.11
Projected Incremental Impact of Business Transformation Project
Costs will exceed benefits in early phase of implementation
Period of Investment
Estimated earnings impact reflects cost savings only. Additional anticipated benefits include:
Higher customer retention
Ability to serve new customer segments profitably
Reduced inventory
Reduced supplier receivables
Sysco Expects to Generate Significant Cash
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18
FY11 FY15
Targeted operating cash flow(including remaining IRSpayments)
$8 $10 billion
Capital costs (including
business transformationcapital) $3.0 $3.5 billion
Available for Acquisitions,
Dividends, Share Repurchases,and Other
$5.0 $6.5 billion
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1919
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December 14, 2009
Bill DeLaneyChief Executive Officer
Enhancing Economic Value
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2
ProfitableSales
Growth
Reinvestingin the
Business
Cash FlowGeneration
ReturnCapital to
Shareholders
Return On Invested Capital
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Capabilities
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5
40 year history of consistent success
Committed to operational excellence
Dominant market leadership position
Talented and committed employees
Differentiated brand
Sound technology platform
Substantial operating cash flow
Base Case Scenario: FY2010 FY2015
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No major strategic
acquisitions or divestitureactivity assumed in thebase case scenario
Business transformation
project will be dilutive toearnings through FY 2012,neutral in FY 2013, andaccretive thereafter
Average annual nominal industry growth of 2% - 3%
Short-term outlook is cautious extent and pace of
industry recovery is difficult to predict
Long-term outlook is for modest industry growth
6
Assumptions
Assumptions Used In EstablishingObjectives
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7
2000-2005
2005 -2009
Long-TermAssumptions
Nominal Industry SalesGrowth
5% 2% -
Additional Sysco Sales
Growth
+4% +2% -
Total Sysco Sales Growth 9% 4% -
Annual Food Away From HomeInflation
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8
0.9
1.82.2
4.1
6.8
4.23.9
1.72.3 2.1
3.1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
1955-1959 1960-1964 1965-1969 1970-1974 1975-1979 1980-1984 1985-1989 1990-1994 1995-1999 2000-2004 2005-2008
Food Away From Home (1) Historical Inflation Rates
Note: (1) Food away from home consumer price index includes corporate cafeterias, healthcare institutions, educational institutions, andrestaurants.
Source: U.S. Bureau of Labor Statistics
2.92.4
5.1
7.4
9.1
5.44.0
2.02.5 2.5
3.43.5
2.7
6.1
12.7
11.1
9.9
4.6 4.7
2.8 3.0
4.4
Median inflation rates since 2000 have ranged from 2.5% to 3.4%
Inflation Range = Minimum Inflation Rate to Maximum Inflation Rate
Median Inflation Rate
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Assumptions Used In EstablishingObjectives
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10
2000-2005
2005 -2009
Long-TermAssumptions
Nominal Industry SalesGrowth
5% 2% 2% - 3%
Additional Sysco Sales
Growth
+4% +2% -
Total Sysco Sales Growth 9% 4% -
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Assumptions Used In EstablishingObjectives
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12
2000-2005
2005 -2009
Long-TermAssumptions
Nominal Industry SalesGrowth
5% 2% 2% - 3%
+
Additional Sysco Sales
Growth
+4% +2% 2% - 3%
=
Total Sysco Sales Growth 9% 4% 4% - 6%
Expectations: FY2010 FY2015
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13
Average annual nominal industry growth of2% - 3%
Short-term outlook is cautious extentand pace of industry recovery is difficult
to predict
Long-term outlook is for modest
industry growth
Business transformation project will bedilutive to earnings through FY 2012,neutral in FY 2013, and accretivethereafter
No major strategic acquisitions ordivestiture activity assumed in the basecase scenario
Assumptions Sysco Objectives
Grow sales 2 3 points faster than industrygrowth
Expand operating margins by at least 1 point
Leverage existing competitive advantages
Successful implementation of businesstransformation
Return on invested capital approaches 20%
Reinvest cash flow in responsible anddisciplined manner
Targeted FY11-FY15 operating cash flow of $8-
$10 billion
Capital Expenditures
Acquisitions
Dividend
Share Repurchase
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1616
Sysco Participants
Bill Day
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1
Bill Day
Senior Vice President, Merchandising and Supply Chain
Mr. Day began his Sysco career in 1983 as a staff accountant at Sysco Memphis. In 1991, he led thedeployment of the companys current operating system, Sysco Uniform Systems. He was promotedto assistant controller of the corporation and became a corporate officer in 1999. He started theRDC project in 2000 and was promoted to vice president, supply chain management in 2003. In2007, Mr. Day was promoted to senior vice president, supply chain management and took on the
additional responsibilities of the companys merchandising activities in 2009.
Twila Day
Senior Vice President, Chief Information Officer
Mrs. Day began her Sysco career in 1992 as a senior programmer analyst in the companysinformation technology department, progressing through a wide range of management positionsbefore being promoted to assistant vice president, technology and applications in 2000. She becamevice president, information technology in July 2005, and was promoted to her current role in 2009.
Bill DeLaney
Chief Executive Officer
Mr. DeLaney began his Sysco career in 1987 as assistant treasurer at the companys corporateheadquarters. He was promoted to treasurer in 1991, and in 1993 he was named a vice president ofthe company, continuing in those responsibilities until 1994. He rejoined the company at SyscoSyracuse in 1996 as chief financial officer, progressing to senior vice president in 1998, and toexecutive vice president in 2002. In 2004, Mr. DeLaney was appointed president and chief executive
officer of Sysco Charlotte. He returned to the corporate headquarters in 2007 and was promoted toexecutive vice president and CFO later that year. In March 2009, Mr. DeLaney was promoted to chiefexecutive officer.
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Sysco Participants
Kathy Gish
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3
Kathy Gish
Vice President, Assistant Treasurer
Mrs. Gish began her Sysco career in 1998 as senior director, treasury. In 2000 she was appointed toassistant treasurer. In 2005, she was named vice president and assistant treasurer withresponsibilities for Sysco's global treasury operations including cash management, banking, finance,risk management and stock based plans. She held various financial management positions for 19years prior to joining Sysco, including assistant treasurer at Sterling Chemicals, treasury manager at
CRSS, Inc. and Weatherford International, and cash manager at Geosource, Inc.
Mike Green
Executive Vice President, Northeast and North Central U.S. Foodservice Operations
Mr. Green began his foodservice career in 1981, serving 10 years in various sales and management
positions before joining Sysco Chicago as a member of the management development program in1991. He progressed to vice president of marketing that same year, vice president of marketing andmerchandising in 1992, and in the fall of 1992 was named executive vice president of the Chicagooperation. He was moved to Sysco Detroit in 1994 as president and CEO. Mr. Green was promoted tosenior vice president operations, midwest region in 2004 and stepped up to his current position in2008.
Jim Hope
Executive Vice President, Business Transformation
Mr. Hope began his Sysco career in 1987 as a financial analyst at the corporate headquarters inHouston and advanced through a variety of management positions before moving to Sysco KansasCity in 1993 as chief financial officer. In 2000 he was promoted to president and chief executiveofficer of that company. He returned to Houston in 2005 to serve as a group president for Syscos
strategic development initiative where he focused on customer needs. In 2007, he was promoted tosenior vice president, sales and marketing, and in 2008 he assumed leadership of Syscos businesstransformation. He was promoted to his current position in November 2009.
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Sysco Participants
Mark Palmer
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5
Vice President, Corporate Communications and Organization Effectiveness
Mr. Palmer joined Sysco in 2006 after serving as managing director and corporate communicationspractice group leader at Public Strategies, Inc. He began his communications career in 1982,producing news and sports shows for Learfield Communications, located in Jefferson City, Missouri.He has also held senior communications positions at Fina, Inc. and Enron Corporation.
Larry Pulliam
Executive Vice President, Foodservice Operations
Mr. Pulliam began his Sysco career in 1975 with a predecessor company in Fort Worth, Texas.After joining Syscos corporate office in 1987, he served in various leadership roles in operating
companies, returning to Syscos corporate office in 1997 as vice president and chief informationofficer. He was promoted to president and chief executive officer of Sysco Food Services ofHouston in 2000 and in 2002, Mr. Pulliam returned to Syscos corporate office as senior vicepresident of merchandising services. He was promoted to executive vice president, sales andglobal supply chain in 2006, and in July 2009, was promoted to executive vice president,foodservice operations with responsibility for contract sales and Syscos specialty companies.
Neil Russell
Vice President, Investor Relations
Mr. Russell joined Sysco in 2007. He began his career in 1995 with America West Airlines, holdingvarious positions in strategic planning and revenue management. After transitioning to Delta in1998, he served nine years in various roles of increasing responsibility including director, financialanalysis and positions within strategic planning and market analysis. He served Delta as director,
investor relations prior to joining Sysco.
Sysco Participants
Steve Smith
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6
Executive Vice President, South and West U.S. Foodservice Operations
Mr. Smith began his Sysco career in 1980 as manager of multi-unit accounts at the company'sJackson, Mississippi operation. He transferred in 1981 as vice president to a Sysco division in El Paso.He was promoted to president and CEO of Syscos Atlanta subsidiary in 1983, then transferred to thecompany's Arkansas operation in 1987 to serve in the same capacity. In 1995 he was appointedpresident and CEO of Sysco Central Florida. In 2002, Mr. Smith was named senior vice president of
operations, southeast region and in 2008 was promoted to his current position.
Scott Sonnemaker
Senior Vice President, Foodservice Operations, South and West Regions
Mr. Sonnemaker began his Sysco career in 1996 as director, disposables merchandising, in Syscos
Baugh Supply Chain Cooperative. In 1998, he was promoted to vice president, merchandising andmarketing at Sysco Portland, where he was again promoted to senior vice president, sales, in 1999.In 2000, he was promoted to executive vice president at Sysco Portland and became president andCEO of the operating company in 2001. In 2008, he was promoted to a Sysco corporate officer andbecame senior vice president, operations for Syscos west region. In 2009, he assumedresponsibilities for Syscos south region.
Ken Spitler
Vice Chairman, President and Chief Operating Officer
Mr. Spitler joined Sysco in 1986 and has held a variety of executive positions with the companyincluding serving as president and chief executive officer of the companys Detroit and Houstonoperating companies. In 2000, he was named senior vice president, operations for the northeastregion. Mr. Spitler relocated to Syscos corporate headquarters in 2002 when he was promoted to
executive vice president, redistribution and foodservice operations. In January 2005, he waspromoted to executive vice president and president of North American foodservice operations. He waspromoted to president and chief operating officer of Sysco in February 2007 and added the title ofvice chairman in March 2009.
Sysco Participants
Chuck Staes
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Senior Vice President, Foodservice Operations, Northeast and North Central Regions
Mr. Staes joined Sysco in 1986 when his familys produce distribution business merged with SyscoChicago. He became vice president of merchandising in 1992 and was promoted to executive vicepresident in 1996, followed by his promotion to president of that company in 1997. He waspromoted to his current position in 2008. He spent two years in the management informationconsulting division of Arthur Andersen prior to joining Sysco.
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