Aramark : Business Review Slides - August 2022

Aramark Business Review

August 2022

Forward-Looking Statements

Special Note About Forward-Looking Statements

This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements include, but are not limited to, statements under the heading "Fiscal 2022 Outlook" and those related to our expectations regarding the impact of the ongoing COVID-19 pandemic, the performance of our business, our financial results, our operations, our liquidity and capital resources, the conditions in our industry and our growth strategy. In some cases forward-looking statements can be identified by words such as "outlook," "aim," "anticipate," "are or remain or continue to be confident," "have confidence," "estimate," "expect," "will be," "will continue," "will likely result," "project," "intend," "plan," "believe," "see," "look to" and other words and terms of similar meaning or the negative versions of such words. These forward-looking statements are subject to risks and uncertainties that may change at any time, actual results or outcomes may differ materially from those that we expected.

Some of the factors that we believe could affect or continue to affect our results include without limitation: the severity and duration of the ongoing COVID-19 pandemic; the pandemic's impact on the United States and global economies, including particularly the client sectors we serve and governmental responses to the pandemic; unfavorable economic conditions; natural disasters, global calamities, climate change, new pandemics, sports strikes and other adverse incidents; geopolitical events, including, but not limited to, the ongoing conflict between Russia and Ukraine and its effects on global supply chains, volatility and disruption of global financial markets; the failure to retain current clients, renew existing client contracts and obtain new client contracts; a determination by clients to reduce their outsourcing or use of preferred vendors; competition in our industries; increased operating costs and obstacles to cost recovery due to the pricing and cancellation terms of our food and support services contracts; currency risks and other risks associated with international operations, including compliance with a broad range of laws and regulations, including the United States Foreign Corrupt Practices Act; risks associated with suppliers from whom our products are sourced; disruptions to our relationship with our distribution partners; the contract intensive nature of our business, which may lead to client disputes; our expansion strategy and our ability to successfully integrate the businesses we acquire and costs and timing related thereto; continued or further unionization of our workforce; liability resulting from our participation in multiemployer defined benefit pension plans; the inability to hire and retain key or sufficient qualified personnel or increases in labor costs; laws and governmental regulations including those relating to food and beverages, the environment, wage and hour and government contracting; liability associated with noncompliance with applicable law or other governmental regulations; new interpretations of or changes in the enforcement of the government regulatory framework; increases or changes in income tax rates or tax-related laws; the failure to maintain food safety throughout our supply chain, food-borne illness concerns and claims of illness or injury; a cybersecurity incident or other disruptions in the availability of our computer systems or privacy breaches; our leverage; the inability to generate sufficient cash to service all of our indebtedness; debt agreements that limit our flexibility in operating our business; risks associated with the impact, timing or terms of the proposed spin-off of Aramark Uniform Services (our Uniform segment) as an independent publicly traded company to our stockholders (the "proposed spin-off'"); risks associated with the expected benefits and costs of the proposed spin-off, including the risk that the expected benefits of the proposed spin-off will not be realized within the expected time frame, in full or at all, and the risk that conditions to the proposed spin-off will not be satisfied and/or that the proposed spin-off will not be completed within the expected time frame, on the expected terms or at all; the expected qualification of the proposed spin-off as a tax-free transaction for United States federal income tax purposes, including whether or not an Internal Revenue Service ruling will be sought or obtained; the risk that any consents or approvals required in connection with the proposed spin-off will not be received or obtained within the expected time frame, on the expected terms or at all; risks associated with expected financing transactions undertaken in connection with the proposed spin-off and risks associated with indebtedness incurred in connection with the proposed spin-off; the risk of increased costs from lost synergies, costs of restructuring transactions and other costs incurred in connection with the proposed spin-off; retention of existing management team members as a result of the proposed spin-off; reaction of customers, our employees and other parties to the proposed spin-off; and the impact of the proposed spin-off on our business and the risk that the proposed spin-off may be more difficult, time-consuming or costly than expected, including the impact on our resources, systems, procedures and controls, diversion of management's attention and the impact on relationships with customers, suppliers, employees and other business counterparties; and other factors set forth under the headings "Part I, Item 2-Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Part II, Item 1A-RiskFactors-Risks associated with the proposed spin-off" of our Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission ("SEC") on May 10, 2022 and headings "Part I, Item 1A Risk Factors," "Part I, Item 3 Legal Proceedings" and "Part II, Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations" and other sections of our Annual Report on Form 10-K, filed with the SEC on November 23, 2021 as such factors may be updated from time to time in our other periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov and which may be obtained by contacting Aramark's investor relations department via its website at www.aramark.com. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and in our other filings with the SEC. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, us. Forward-looking statements speak only as of the date made. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, changes in our expectations, or otherwise, except as required by law.

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Q3 Summary

• Revenue +38%; Organic Revenue +39%

1. Revenue surpassing pre-COVID levels across all three business segments

• 1. Primarily driven by record-level net growth, pricing, and ongoing base recovery
• Operating Income +99%; Adjusted Operating Income (AOI) +73%1
• 1. Operating Income Margin of 3.6%, +109 bps; AOI Margin of 4.4%1, +85 bps1

• 1. Improved profitability from higher sales volume and operational cost management
• EPS increased to $0.16; Adjusted EPS increased to $0.25
• 1. EPS higher by $0.03; Adjusted EPS higher by $0.231
• Raising fiscal 2022 outlook for Organic Revenue Growth and Annualized Net New Business
• 1. Now expect organic revenue growth of +31% to +32%; Annualized Net New Business of $725 million to $775 million
  1. Maintain AOI margin and Free Cash Flow expectations

1On a constant-currency basis

*Pre-COVID level reflects constant currency performance compared to the same period in fiscal '19

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Organic Revenue Trends

Q3 Organic Revenue Growth vs PY

60%
50%			➢
40%
30%
20%			➢
10%
0%			➢
US Food and Facilities	International	Uniforms	Total Aramark

	% of Fiscal '19 Organic Revenue
110%
100%		➢

90%

80%

70%

60%

50%

Q3 '20

Q4 '20

Q1 '21

Q2 '21

Q3 '21

Q4 '21

Q1 '22

Q2 '22

Q3 '22

Both Revenue and Organic Revenue at 103% of pre-COVID level

1. Performance milestone driven by broad-based net new business, pricing, and ongoing base recovery

FSS United States organic revenue +45% compared to Q3 '21

1. Stronger year-over-year growth with all sectors contributing

FSS International organic revenue +49% versus Q3 '21

1. Led by new business wins and increased event activity, particularly in sports & entertainment across Europe, as well as improvement in business & industry in both Europe and Rest of World

Uniform & Career Apparel organic revenue +11% compared to Q3 '21

1. Driven by rental revenue growth and strength in adjacency services

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Increased Activity Across Portfolio

Education

F Sports, Leisure &

S Corrections

S

Business &

U Industry

S

Healthcare

Facilities & Other

FSS International

Uniforms

• Solid performance to end the academic year, with Higher Education and K-12 now preparing for the upcoming new school season
• Began implementation of enhanced pricing strategies for board plans and on-campus retail outlets
• Significantly higher year-over-year results led by strong attendance levels
• S&E drove increased per capita spending, led by MLB, as well as an accelerated return of concert schedules
• Leisure experienced increased guest activity, particularly in National Parks
• Corrections performed above pre-COVID levels driven by new business wins
• Continued gradual progress with higher participation rates and increased levels of in-person interaction at client sites, including social gatherings, networking opportunities, and wellness sessions
• Growth led by increased client activity related to elective surgeries and clinical care
• Renewed several marquee accounts as well as added new offerings, including Ambulatory Surgical Centers
• Reflecting ongoing demand in core business offerings with an added focus on new engineering solutions and client project services
• New business wins and increased event activity, particularly in sports & entertainment across Europe
• Improvement in business & industry in both Europe and Rest of World
• Growth driven by rental revenue and strength in adjacency services

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