Aramark : Business Review Slides - November 2022

Aramark Business Review

NOVEMBER 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 2023 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: unfavorable economic conditions; natural disasters, global calamities, climate change, pandemics, including the ongoing COVID-19 pandemic, energy shortages, 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, inflation, 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; environmental regulations; potential liabilities, increased costs, reputational harm, and other adverse effects based on the our commitments and stakeholder expectations relating to environmental, social and governance considerations; 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; variable rate indebtedness that subjects us to interest rate risk; 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 August 8, 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.

2

Summary of Results

Fourth Quarter

• Revenue +24%; Organic Revenue +26%

• 1. Revenue at 111% of pre-COVID level; Organic Revenue at 113% of pre-COVID level*
  1. Driven by record net growth, pricing, and ongoing base recovery
• Operating Income +50%; Adjusted Operating Income (AOI) +62%1
• 1. Operating Income Margin +79 bps; AOI Margin +136 bps1

• 1. Continued margin recovery as a percentage of pre-COVID level
• EPS increased $0.15 to $0.29; Adjusted EPS more than doubled to $0.491
• 1. Effect of currency translation impacted Adjusted EPS by $0.01

Full Year Fiscal 2022

• Record Net New Business2 of $790 million, over 50% higher than fiscal 2021

• 1. Annualized gross new business exceeded $1.6 billion, representing 10% of pre-COVID revenue
  1. Retention rate of 95.3%, maintained significant improvement vs. historical average
• Revenue +35%; Organic Revenue +35%
• 1. Represents highest annual revenue in Company history

• 1. Strong momentum into fiscal 2023 driven by net growth, pricing, and ongoing base recovery
• Operating Income +228%; Adjusted Operating Income (AOI) +169%1
• 1. Operating Income Margin +227 bps; AOI Margin +243 bps

• 1. Improved profitability from higher sales volume and operational cost management
• EPS increased $1.11 to $0.75; Adjusted EPS increased $1.49 to $1.201
• 1. Effect of currency translation impacted Adjusted EPS by $0.04
• Strong cash flow and higher earnings drove enhanced financial flexibility
• 1. Net cash provided by operating activities of $694 million, increased $37 million; Free Cash Flow of $330 million, an improvement of $48 million
  1. Leverage ratio improved 2.1x with cash availability of over $1.8 billion at fiscal-year-end

*Pre-COVID level reflects constant currency performance compared to the same period in fiscal '19 1On a constant-currency basis

2Net New Business is an internal statistical metric used to evaluate Aramark's new sales and retention performance. A definition of the metric can be found under Selected Operational and Financial Metrics

3

Record Net New Business Performance in FY 2022

	Annualized New Business Wins			Retention			Annualized Net New Business
		(in millions)								(in millions)	$790
$1,800				96.0%				$800
		$1,607
$1,600					95.5%
			95.5%		95.3%	$700
$1,400		$1,240
						$600		$505
$1,200	$995			95.0%
					$500
$1,000
			94.5%				$400
$800
				94.0%
$600				94.0%			$300
$400								$200
			93.5%				$92
$200								$100
$0				93.0%				$0
5-year Avg	FY21	FY22	5-year Avg	FY21	FY22	5-year Avg	FY21	FY22
	(FY16-FY20)			(FY16-FY20)				(FY16-FY20)
% of		7.7%	9.7%					% of	3.1%	4.9%
Revenue: 6.6%					Revenue: 0.6%

• Strong, broad-based growth performance from multiple lines of business and geographies, as well as clients both large and small
• Annualized gross new business wins highest in Company's history
• Annual retention rate maintained above 95% for the second consecutive year
• Net New Business more than 50% higher than FY21 and over 8.5x greater than historical five-year average
• At nearly 5% of pre-COVID revenue, Net New Business already achieving the top end of the multi-year target range provided at Analyst Day

4

FSS US: Components of Net New Business

$450

$350

$250

$150

$50

($50)

• of
  Revenue:

$900

$800 $700 $600 $500 $400 $300 $200 $100

$0

• of
  Revenue:

Annualized Net New Business

(in millions)

$413

$296

$(14)

5-year Avg	FY21	FY22
(FY16-FY20)
(0.1)%	3.0%	4.3%

Annualized New Business Wins

(in millions)

$861

$687

$517

5-year Avg	FY21	FY22
(FY16-FY20)
5.3%	7.0%	8.5%

• Net New Business 40% higher than fiscal 2021
• Significant gross new business wins across portfolio, particularly Facilities, Healthcare and Corrections
• Strong retention rates of approximately 96%

Retention

96.0%	96.0%	95.8%

95.0%94.5%

94.0%

93.0%

92.0%

91.0%

90.0%

5-year Avg

FY21

FY22

(FY16-FY20)

5