US Foods : First Quarter Fiscal 2024 Earnings Presentation

First Quarter Fiscal Year 2024 Results

May 9, 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.

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Continued Execution Driving EBITDA Growth and Share Gains in Target Customer Types

1. Delivered $356 million in first quarter Adjusted EBITDA, in line with expectations and remain on track for full year guidance
2. Gained share with independent restaurants for 12 consecutive quarters
3. Focused approach to capital allocation; maintained strong balance sheet and closed on IWC Food Service acquisition in April 2024

Reconciliations of these non-GAAP measures are provided in the Appendix.

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Our Four-Pillar Strategy Drives Value Creation

CULTURE	SERVICE	GROWTH	PROFIT
EMBRACE THE US FOODS® CULTURE	DELIVER WORLD-CLASS SERVICE	GROW MARKET SHARE	EXPAND EBITDA MARGIN
SAFE	RELIABLE	TARGET	MARGIN
SUPPORTIVE	EFFICIENT	DIFFERENTIATE	PRODUCTIVITY
RESPONSIBLE	EASY-TO-USE	BE FRESH	OPTIMIZATION

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CULTURE

EMBRACE THE US FOODS® CULTURE

SAFE: Always keep our people safe and embrace a path to zero accidents and injuries

SUPPORTIVE: Champion a diverse and inclusive work environment for all; foster employee engagement; attract world-class talent

RESPONSIBLE: Be environmentally and socially conscious

Embrace the US Foods Culture

• Instilling a strong safety culture; safety performance improved by 30% over prior year
• Launched our Spring Scoop with 26 new high quality, innovative, responsible and labor-saving products
• Increased our investment in our "Helping Communities Make It" program across three strategic community giving areas: hunger relief, culinary education, and disaster relief

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SERVICE

DELIVER WORLD-CLASS SERVICE

RELIABLE: Ensure best-in-class

delivery: on-time and in full

EFFICIENT: Drive routing transformation and logistics management; increase replenishment effectiveness

EASY-TO-USE: Create best- in-class experiences for the customer powered by digital and omni-channel capabilities

Deliver Service Excellence

• Completed replenishment initiative which has improved our "delivered as ordered" Net Promoter Score by 7 percentage points, yielded $15 million in annualized OpEx savings and reduced working capital by $120 million
• Drove 4% improvement in cases per mile over prior year and 12% over two years via routing initiative
• Extended Descartes routing deployment to four additional markets during the first quarter
• Migrated over 65% of our national chain business to MOXē

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GROWTH

GROW MARKET SHARE

TARGET: Grow market share with independent restaurants, health care, hospitality and targeted tuck-in acquisitions

DIFFERENTIATE: Capitalize on our food innovations, team-based selling and value added services

BE FRESH: Improve our capabilities and drive share in produce and COP

Grow Profitable Market Share

• On track to achieve our 1.5x market growth goal for restaurants for 2024, driven by faster growth with independents
• Gained market share with independents for 12 consecutive quarters
• Expanding Pronto, our small truck delivery service, to 5 additional markets in 2024. Live in 36 markets and on track to deliver ~$600 million in annualized sales this year
• Closed on previously announced tuck-in acquisition of IWC in April 2024, to enable expansion in central Tennessee and better serve the greater Nashville area

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PROFIT

EXPAND EBITDA MARGIN

MARGIN: Expand through EB growth, strategic vendor management and pricing initiatives

PRODUCTIVITY: Embrace continuous improvement and drive 3-5% annual gains

OPTIMIZATION: Enhance indirect spend management

Further Optimize EBITDA Margin

• Addressed 60% of our COGS, which has translated into ~$120 million in savings over the past 12 months; we have initiated the work to address the remaining 40 percent of our spend this year
• Increased private label penetration by 90 basis points to over 52% with independent restaurants
• Drove ~4% improvement in delivery productivity; in line with our goal to drive 3% to 5% annual productivity gains to offset wage inflation

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First Quarter Fiscal Year 2024 Financial Review

Dirk Locascio

Chief Financial Officer

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Delivered Continued Sales and Earnings Growth

Q1 2024	B/(W) vs.
Q1 2023

Total Case Volume

Independent Restaurant Case Volume

Net Sales ($millions)	$8,949
Adjusted EBITDA(1) ($millions)	$356
Adjusted EBITDA Margin(1)	4.0%
Adjusted Diluted EPS(1)	$0.54

+4.2%

+4.6%

+4.8%

+5.6%

+3 bps

+8.0%

(1) Reconciliations of these non-GAAP measures are provided in the Appendix.

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