SYY Presentation Dec 09

8/14/2019 SYY Presentation Dec 09

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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



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


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


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%


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

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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

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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

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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

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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

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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

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Specialty Meat Companies


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Imp o ing P ofitabilit at SYGMA


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Improving Profitability at SYGMA

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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 Produce Companies


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Specialty Produce Companies

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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
http://www.hallsproduce.com/


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FreshPoint Initiatives


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FreshPoint Initiatives

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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

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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

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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


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

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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

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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

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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

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RDC Network


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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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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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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



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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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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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Inside the RDC


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Inside the RDC


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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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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


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


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


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%


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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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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10

2000-2005

2005 -2009



5% 2% 2% - 3%


Growth

+4% +2% -

Total Sysco Sales Growth 9% 4% -


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12

2000-2005

2005 -2009



5% 2% 2% - 3%

+


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.

Documents

SYY Presentation Dec 09