Aramark : 2022 Annual Report

A Message From our Chief Executive Officer

To Our Shareholders,

Fiscal 2022 was a year of strong performance for Aramark. As a company, we've moved from recovery mode to growth mode, ending our fiscal year on strong footing. We believe we are well poised to continue the strategic transformation we initiated at the beginning of fiscal 2020.

Across the globe, our approximately 274,000 team members continue to embody the client-focused, profitable growth culture we set out to establish. This mindset helped us reach new milestones, as we achieved the highest annual revenue result in company history and a second consecutive year of record Net New Business1

Revenue and Net New Business are only part of the story. Despite a challenging operating environment, our teams have remained focused on providing high-quality hospitality services while working closely to mitigate costs and drive additional value for our clients.

Our commitment to "Reach for Remarkable" led to measurable success, and it is with immense pride I share with you some of the highlights and hard work that defined it.

Fiscal 2022 Highlights

• We signed a historic high $1.6 billion in annualized gross new business in the year and retention rates were above 95% for the second consecutive year, as we maintained a step change improvement.
• Net New Business increased by more than 50% compared to fiscal 2021-from $505 million to $790 million-and was more than 8.5 times greater than the historical five-year average from fiscal 2016 to fiscal 2020.
• Revenue grew 35% year over year to exceed $16.3 billion for the full year, and the operating income margin more than doubled compared to fiscal 2021.

Performance in fiscal 2022 was broad-based across multiple lines of business and geographies.

Our Food and Support Services (FSS) United States segment delivered $400 million in Net New Business-more than 40% higher than fiscal 2021 and about 20 times greater than fiscal 2019. In addition to the strong level of new account wins and high retention rates, our U.S. business drove ongoing progress and higher activity levels. Collegiate Hospitality and Student Nutrition introduced new concepts, including innovative culinary offerings, technological advances, and enhanced dining spaces. Both Sports + Entertainment and Destinations experienced high attendance levels, which helped drive excellent performance. Accelerated return-to-office behavior in the workforce benefited our Workplace Experience Group. Healthcare+ saw increased patient and retail activity, and Facilities Management supported ongoing demand in core business offerings.

Net New Business in our FSS International segment doubled, with nearly $300 million in the year. Greater reopening activity and consistent multiyear Net New Business performance continued to drive strong results in the segment.

Our Uniform Services segment increased Net New Business by more than 25% over the previous year and drove growth in both recurring rental revenues and adjacency services. Additionally, margins continued to improve, supported by operational efficiencies and progress in route-based optimization.

Revenue and profits have been on the rebound. Cash flow is strong, and we are reducing our leverage. All of this keeps us on track to achieve our financial goals.

Beyond the Bottom Line

Because we are a people company, our commitment to environmental, social, and governance (ESG) issues is paramount. Our ESG plan, Be Well. Do Well., continues to drive positive results in the areas of sustainability; diversity, equity, and inclusion; and community involvement.

In fiscal 2022:

• We trained more than 8,000 managers in inclusive leadership and the importance of
  equity. We also established ESG goals that include a focus on enhancing our representation of diverse managers.
• We submitted for validation (approximately six months ahead of schedule) enterprise-wide,science-based targets to reduce greenhouse gas emissions, in line with the Science Based Targets initiative (SBTi) Net Zero Standard.
• Our new plant-forward menus and sustainable meals were embraced by clients across the portfolio, particularly in Healthcare+ and Collegiate Hospitality. In partnership with the Humane Society of the United States, we pledged that by 2025, at least 44% of our residential dining menu offerings will be plant-based.
• We signed the Pacific Coast Food Waste Commitment as an extension of our existing promise to reduce food waste by 50% by 2030 and the World Resources Institute Cool Food Pledge, reflecting our commitment to reduce our food-related emissions in the U.S. by 25% by 2030.
• Our Aramark Building Community Days saw a return to in-person service projects. In 2022, thousands of volunteers pitched in to help in 88 cities and 11 countries.

Looking Ahead

This coming year is one of opportunity and represents another step toward our longer-term goals.

In fiscal 2023, we plan to complete the spin-off of our Uniform Services business into an independent, publicly traded company in a transaction that is intended to be tax-free to Aramark and its stockholders. We believe this transaction will best position both companies to execute their respective strategies.

We're excited about what we have been able to achieve-our Net New Business, service to clients, and ongoing dedication to ESG. We have a strong growth strategy in place, a renewed focus on building margin through scale, and a commitment to achieve our established goals.

We remain on track to achieve long-term results, and we are confident in our ability to deliver value to you, our stakeholders.

We are Aramark, and our mission remains central to everything we do: Because we're rooted in service, we do great things for our people, our partners, our community, and our planet.

And that's what fiscal 2023 will be all about-delivering on what we stand for.

Thank you,

John Zillmer

• Net New Business is an internal statistical metric used to evaluate Aramark's new sales and retention performance. The calculation is defined as the annualized value of gross new business less the annualized value of lost business.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

• ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

or

• TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended September 30, 2022

Commission File Number: 001-36223

Aramark

(Exact name of registrant as specified in its charter)

Delaware	20-8236097
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)
2400 Market Street	19103
Philadelphia, Pennsylvania
(Address of principal executive offices)	(Zip Code)
	[phone]

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on which Registered
Common Stock, par value $0.01 per share	ARMK	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes  No 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.

Yes  No 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and

(2) has been subject to such filing requirements for the past 90 days.

Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that registrant was required to submit such files).

Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer  Accelerated filer  Non-accelerated filer  Smaller reporting company  Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 