Investor Presentation March 2024
Disclaimer Page
Cautionary Statements Regarding Forward-Looking Information
Statements in this presentation which are not historical in nature are "forward-looking statements" within the meaning of the federal securities laws. These statements often include words such as "believe," "expect," "project," "anticipate," "intend," "plan," "outlook," "estimate," "target," "seek," "will," "may," "would," "should," "could," "forecast," "mission," "strive," "more," "goal," or similar expressions (although not all forward-looking statements may contain such words) and are based upon various assumptions and our experience in the industry, as well as historical trends, current conditions, and expected future developments. However, you should understand that these statements are not guarantees of performance or results and there are a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results to differ materially from those expressed in the forward-looking statements, including, among others: economic factors affecting consumer confidence and discretionary spending and reducing the consumption of food prepared away from home; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; changes in our relationships with customers and group purchasing organizations; our ability to increase or maintain the highest margin portions of our business; achievement of expected benefits from cost savings initiatives; increases in fuel costs; changes in consumer eating habits; cost and pricing structures; the impact of climate change or related legal, regulatory or market measures; impairment charges for goodwill, indefinite-lived intangible assets or other long-lived assets; the impact of governmental regulations; product recalls and product liability claims; our reputation in the industry; labor relations and increased labor costs and continued access to qualified and diverse labor; indebtedness and restrictions under agreements governing our indebtedness; interest rate increases; disruption of existing technologies and implementation of new technologies; cybersecurity incidents and other technology disruptions; risks associated with intellectual property, including potential infringement; effective consummation of pending acquisitions and effective integration of acquired businesses; potential costs associated with shareholder activism; changes in tax laws and regulations and resolution of tax disputes; certain provisions in our governing documents; health and safety risks to our associates and related losses; adverse judgments or settlements resulting from litigation; extreme weather conditions, natural disasters and other catastrophic events; and management of retirement benefits and pension obligations.
For a detailed discussion of these risks, uncertainties and other factors that could cause our actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 30, 2023. Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Company with the SEC, which are available on the SEC's website at www.sec.gov. Additionally, we operate in a highly competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible to predict all risks nor identify all uncertainties. The forward-looking statements contained in this presentation speak only as of the date of this presentation and are based on information and estimates available to us at this time. We undertake no obligation to update or revise any forward-looking statements, except as may be required by law.
Non-GAAP Financial Measures
We report our financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). However, this presentation includes the following non-GAAP financial measures: Adjusted Gross profit, Adjusted Operating expenses, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net income, Adjusted Diluted Earnings Per Share (EPS), Net Debt and Net Leverage Ratio. These non-GAAP financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. We caution readers that our definition of these non-GAAP financial measures may not be calculated in the same manner as similar measures used by other companies. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measures are included in the Appendix to this presentation.
Please note that the Company is not providing a reconciliation of certain forward-lookingnon-GAAP financial measures, including Adjusted EBITDA and Adjusted Diluted EPS, because the Company is unable to predict with reasonable certainty the financial impact of certain significant items, including restructuring costs and asset impairment charges, share-based compensation expenses, non-cash impacts of LIFO reserve adjustments, losses on extinguishments of debt, business transformation costs, other gains and losses, business acquisitions and integration related costs, and diluted earnings per share. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, the Company is unable to address the significance of the unavailable information, which could be material to future results.
US FOODS INVESTOR PRESENTATION 2024 | 2 |
Key Messages
1 | Broad national scale in a fragmented industry with focus on |
differentiation of technology, team-based selling and product | |
innovation to drive outsized growth | |
2 | Experienced executive team with defined strategy to enhance |
profitability through Long-Range Plan | |
3 | Resilient business model with history of long-term |
secular growth | |
4 | Utilizing proprietary sales tools and operational excellence to gain |
market share in strategic end markets | |
5 | Strong operating cash flow supports investment in the business, |
maintain leverage within target range, tuck-in M&A, and share |
repurchases to create long-term value
US FOODS INVESTOR PRESENTATION 2024 | 3 |
US Foods Overview
US FOODS INVESTOR PRESENTATION 2024 | 4 |
GREAT FOOD.
INNOVATIVE TECHNOLOGY.
DEDICATED AND
PERSONALIZED SUPPORT.
MORE THAN JUST A TAGLINE
When we say, "We Help You Make It®", we mean it. More than just a tagline, this is the US Foods® promise to our customers. With great food solutions, innovative yet simple business tools and a dedicated team of experts, count on us to help take on your business challenges so you can feed your passion with confidence.
US FOODS INVESTOR PRESENTATION 2024 | 5 |
Executive Leadership Team with Extensive Industry Experience
Dave Flitman | Irfan Badibanga | Steve Boggan | Steve Guberman | Martha Ha | Bill Hancock |
Chief Executive Officer | President, | Regional President - | EVP, Chief Transformation Officer & | EVP, General Counsel | EVP, Chief Supply |
CHEF'STORE | Central | Nationally Managed Business | Chain Officer |
Rick Hausman | Diane Hund | Rob Koppenhaver | Tim Lewis | Dirk Locascio | Dave Poe |
Regional President - | SVP and Chief | Regional President - | Regional President - | EVP, Chief Financial | EVP, Chief Merchant |
Southeast | Marketing Officer | Northeast | West | Officer |
Dave Rickard | Sara Schmidt | Randy Taylor | John Tonnison | David Works | |
EVP, Strategy & | SVP and Chief Information | EVP, Field Operations | EVP, Chief Information | EVP, Chief Human | |
Revenue Management | Security Officer | and Local Sales | & Digital Officer | Resources Officer | |
US FOODS INVESTOR PRESENTATION 2024 | 6 |
Highly Experienced Board with Unique Backgrounds, Qualifications and Skills Providing Effective Oversight
KNOWLEDGE, SKILLS & EXPERIENCE
DEMOGRAPHICS & TENURE
Food Industry
Supply Chain & Logistics
CEO Leadership
Sustainability & Corporate
Responsibility
Accounting/Finance
Risk Management
Technology
Marketing & Strategy
Human Capital Management
Other Public Company Boards
Independent
Non-Independent
1
91%
Independent
10
Women
Black
Asian
3
45%
6 Diverse
1
1
Less than 5 yrs
Between 5 and 10 yrs
4.4 years
Average 5
6 Tenure
Over 65
Between 50 and 65
62 | 5 |
6 Average Age |
US FOODS INVESTOR PRESENTATION 2024 | 7 |
US Foods - At a Glance
US Foods Distribution Center
States with CHEF'STORES
REVENUE | ~10% | 18% | 5% | ||
BREAKDOWN1 | 6% | ||||
~65% | 33% | 10% | 34% | ||
Industry | Our | Our | |||
~25% | |||||
Structure | Customers | 10% Products | |||
26% | |||||
23% | 17% | 18% |
$36B(1) | 150+ |
IN REVENUE | YEARS IN BUSINESS |
~250,000 ~6,500
CUSTOMERS TRUCKS IN OUR FLEET
~30,000 | ~4,000 |
ASSOCIATES | SALES ASSOCIATES |
70+ ~90
DISTRIBUTION CHEF'STORE®
FACILITIES LOCATIONS
Rest of Industry | Other Top 2 | Independent | Chain | Meat & Seafood | Dry Grocery | |||||||||
USFD | Players | Healthcare & | Other | Refrigerated & | Dairy | |||||||||
Hospitality | Frozen Grocery | Beverage Products | ||||||||||||
Equipment, Disposables, | ||||||||||||||
(1) Revenue as of FY 2023 | & Supplies | US FOODS INVESTOR PRESENTATION 2024 | 8 | |||||||||||
Produce | ||||||||||||||
Significant Total Addressable Market Highlights Growth Potential
2023
Total Addressable Market
~$360B
Restaurants
$210B
Hospitality
& Healthcare
$58B
2025
Total Addressable Market
~$400B
Restaurants
$230B
Hospitality
& Healthcare
$66B
Leading Position in Fastest Growing End Markets with Significant Upside Opportunity
Note: Market as measured by Technomic, Inc. | US FOODS INVESTOR PRESENTATION 2024 | 9 |
Great Food and Menu Solutions All in One Place
We lead with fresh tastes and great food. You'll always find on-trend, exclusive food and menu solutions that deliver the consistently high quality results that US Foods® is known for. From plant-based to clean ingredients, we offer product innovation that can help set your menu apart from the competition.
EXCLUSIVE BRANDS
Guided by a spirit of innovation and an unwavering commitment to delivering high quality products and value to customers, each of our brands is a testament to our dedication to making you more successful.
- 22 Exclusive Brands
- Distinct and different
- Innovative and labor-saving
- High quality and value
- Trusted performance
SCOOP
Our exclusive product innovation program gives the "scoop" on great food and ideas designed to inspire your menu and feed your passion.
- Cutting edge products with back-of-house convenience
- On-trendingredients and flavors customers want
- Labor-savingand profit-boosting products
HUNGRY FOR BETTER
Our commitment to offering authentic products that meet our sustainable or locally sourced standards. We believe that the power of food can do remarkable things, like create change that unites us all and help to improve the state of our planet, people and communities.
- Locally sourced
- Sustainability
- Climate-conscious
- Well-being
US FOODS INVESTOR PRESENTATION 2024 10
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Disclaimer
US Foods Holding Corp. published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 14:05:06 UTC.