Aramark Business Review MAY 2023 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 "Outl ...

Revenue Growth - Revenue for the three months ended March 31, 2023, was $4,602.1 million, an increase of 19.2% from $3,860.5 million for the same period in 2022[9] - Total revenue for the six months ended March 31, 2023, was $9,203.1 million, an increase from $7,808.8 million for the same period in 2022, representing a growth of approximately 17.8%[75] - Revenue from the United States for the six months ended March 31, 2023, was $5,764.2 million, up from $4,763.7 million in the prior year, indicating a growth of about 21.0%[61] - FSS United States segment revenue for the three months ended March 31, 2023, was $2,843.2 million, an increase from $2,338.3 million in the same period of 2022, marking a growth of about 21.6%[78] - FSS International revenue grew by 23.2% to $1,073.0 million for the three months ended March 31, 2023, up from $870.9 million in the same period last year[102] Income and Earnings - Net income attributable to Aramark stockholders for the three months ended March 31, 2023, was $56.0 million, compared to $35.7 million for the same period in 2022, representing a 56.5% increase[9] - Net income for the six months ended March 31, 2023, was $129.5 million, compared to $78.3 million for the same period in 2022, representing a 65.5% increase[15] - Earnings per share attributable to Aramark stockholders for the six months ended March 31, 2023, was $0.50, up from $0.31 for the same period in 2022, reflecting a 61.3% increase[10] - Net income for the three months ended March 31, 2023, was $55.9 million, compared to $35.5 million for the same period in 2022[28] Operating Performance - Operating income for the six months ended March 31, 2023, was $381.6 million, up 35.2% from $282.2 million for the same period in 2022[10] - Operating income for the FSS United States segment increased by approximately $73.9 million and $138.1 million during the three and six month periods of fiscal 2023, primarily due to growth in base business and effective cost management[112] - Operating income by segment for FSS United States increased by 89.9% to $156.0 million for the three months ended March 31, 2023, compared to $82.1 million in the prior year[102] Costs and Expenses - The cost of services provided for the six months ended March 31, 2023, was $8,341.5 million, an increase of 18.1% from $7,062.3 million for the same period in 2022[10] - Interest and other financing costs for the three months ended March 31, 2023, were $114.0 million, compared to $89.7 million for the same period in 2022, indicating a 27.0% increase[9] - The company reported depreciation and amortization expenses of $273.3 million for the six months ended March 31, 2023, slightly up from $267.8 million in the same period last year[15] Cash Flow and Investments - Net cash used in operating activities increased to $292.7 million for the six months ended March 31, 2023, compared to $128.3 million for the same period in 2022[15] - The company reported a net cash used in investing activities of $225.9 million for the six months ended March 31, 2023, compared to $289.8 million for the same period in 2022, indicating a decrease of 22.1%[15] - Cash and cash equivalents at the end of the period were $302.7 million, down from $429.3 million at the end of the previous year[15] Strategic Initiatives - The company anticipates continued growth driven by strategic market expansions and new product developments in the upcoming quarters[6] - The proposed spin-off of Aramark Uniform Services is expected to create additional value for stockholders, with anticipated benefits and costs being closely monitored[6] - The company intends to spin off its Uniform segment into an independent publicly traded company, expected to be completed in the fourth quarter of fiscal 2023[25] Foreign Currency and Adjustments - The company reported a foreign currency translation adjustment of $10.2 million for the three months ended March 31, 2023, compared to $6.4 million for the same period in 2022[12] - The effect of foreign exchange rates on cash and cash equivalents was a positive $477.3 million for the six months ended March 31, 2023, compared to $317.8 million in the same period last year[15] - Foreign currency translation adjustments contributed $10.2 million to comprehensive income for the three months ended March 31, 2023[28] Shareholder Returns - The company approved a dividend of $0.11 per share on May 2, 2023, payable on May 31, 2023, to stockholders of record on May 17, 2023[65] - The net of tax gain expected to be reclassified from "Accumulated other comprehensive loss" into earnings over the next twelve months is approximately $42.8 million[57] Accounting and Compliance - The Company adopted new accounting standards related to government assistance, effective in the first quarter of fiscal 2023, which did not have a material impact on financial statements[28] - The Company is evaluating the impact of new accounting standards related to supplier finance programs, effective in the first quarter of fiscal 2024[28]

Financial Data and Key Metrics Changes - The company reported organic revenue of $4.7 billion, an 18% increase year-over-year, with contributions from net new business (over 4%), pricing (approximately 6%), and higher base business volume (around 8%) [15][19] - Adjusted operating income was $242 million, reflecting a constant currency increase of 47% compared to the previous year, with an AOI margin improvement of just over 100 basis points to 5.3% [15][19] - Adjusted EPS was $0.44, nearly double the $0.23 reported in the first quarter of fiscal 2022 [18] Business Line Data and Key Metrics Changes - In the U.S. Food and Facilities segment, organic revenue increased by 18%, driven by strong performance across all sectors, particularly in Education and Workplace Experience [9][10] - The Uniform Services segment saw a 7% increase in organic revenue due to solid new business sales and retention rates [11] - International organic revenue rose by 28%, supported by consistent net new business performance and base business volume recovery [10] Market Data and Key Metrics Changes - The company experienced strong growth in the Workplace Experience group, with over 40% year-over-year growth driven by client pricing and higher meal participation rates [9] - Healthcare+ continued to perform exceptionally well, benefiting from increased visitor presence and substantial new business growth [10] - The international market showed recovery in lunchtime participation rates and a return of catering activities, contributing to the overall revenue growth [10] Company Strategy and Development Direction - The company plans to use proceeds from the sale of its non-controlling interest in AIM Services for accelerated debt repayment, which is expected to enhance operating focus and strengthen the balance sheet [7][20] - The management emphasized a commitment to managing cost structures and maximizing unit efficiencies to counter inflation [8] - The company is focused on identifying opportunities to enhance profitable growth and shareholder value, particularly in areas with non-controlling interests [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow the bottom line despite ongoing macroeconomic challenges, citing four key opportunities for improved profitability [17] - The company expects organic revenue growth between 11% and 13% for the full fiscal year, with adjusted operating income growth of 32% to 37% [21] - Management acknowledged persistent inflation, particularly in food costs, and indicated that pricing strategies would remain crucial in managing profitability [36][61] Other Important Information - The company released an ESG progress report highlighting commitments to diversity, community building, and responsible sourcing [13] - The recent election of Kevin Wills to the Board of Directors was noted as a strategic addition to the company's leadership [14] Q&A Session Summary Question: New business trends this quarter versus last quarter - Management noted that the first quarter is typically slower for new business development, especially in education, but the pipeline remains strong with many verbal wins [26] Question: Impact of divestiture on AOI for next year - The AOI impact from the AIM Services sale is expected to be less than $30 million for the full fiscal year, with interest savings expected to exceed $30 million [29] Question: AIM Services multiple and other opportunities - The AIM Services sale was driven by the ability to grow businesses without a controlling interest, and management is evaluating other joint venture opportunities [31][32] Question: Inflation outlook and pricing strategies - Management indicated that food inflation remains persistently high, and they expect to maintain pricing strategies to offset costs [36][37] Question: Revenue guidance and organic growth recovery - Management expects organic growth to ease gradually as the year progresses, with net growth staying in the 4% to 5% range [46] Question: Trends in retention by business unit - Retention rates are high across all business units, exceeding targeted ranges [57] Question: Long-term outlook and margin impact - The impact of AIM on margins is estimated to be about 20 basis points, with expectations of continued inflation management [60] Question: Customer appetite for outsourcing - There is a continued trend towards outsourcing due to cost pressures, providing significant new business potential [82]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 30, 2022 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |-----------------------------------------------------------------------|------------------------------------------------------------ ...

Aramark (NYSE:ARMK) Q4 2022 Earnings Conference Call November 15, 2022 8:30 AM ET Company Participants Felise Kissell - IR & Corporate Affairs Executive John Zillmer - CEO & Director Thomas Ondrof - EVP & CFO Conference Call Participants Heather Balsky - Bank of America Ian Zaffino - Oppenheimer Andrew Steinerman - JPMorgan Toni Kaplan - Morgan Stanley Shlomo Rosenbaum - Stifel Neil Tyler - Redburn Andrew Wittmann - Baird Faiza Alwy - Deutsche Bank Ronan Kennedy - Barclays Stephanie Moore - Jefferies Operat ...

Financial Performance - Revenue for the three months ended July 1, 2022, was $4,127,378, a 38.3% increase from $2,981,220 for the same period in 2021[9]. - Operating income for the nine months ended July 1, 2022, was $430,124, compared to $59,125 for the same period in 2021, representing a significant improvement[10]. - Net income attributable to Aramark stockholders for the three months ended July 1, 2022, was $40,329, up from $32,557 in the same period last year, reflecting a 23.3% increase[9]. - Earnings per share attributable to Aramark stockholders for the nine months ended July 1, 2022, was $0.46, compared to a loss of $0.50 for the same period in 2021[10]. - The company reported a net income of $118,733 for the nine months ended July 1, 2022, compared to a net loss of $126,481 for the same period in 2021[10]. - Aramark reported a net income of $40.481 million for the three months ended July 1, 2022, compared to $32.562 million for the same period in 2021, reflecting a year-over-year increase[28]. - For the nine months ended July 1, 2022, Aramark's net income was $118.733 million, a significant recovery from a net loss of $126.481 million in the same period of 2021[28]. - The company anticipates continued growth and improvement in financial performance, driven by strategic initiatives and market expansion efforts[6]. Cash Flow and Investments - Operating cash flow showed a net cash used of $141.993 million, compared to a net cash provided of $233.793 million in the previous year[16]. - Total cash and cash equivalents at the end of the period were $438.868 million, down from $483.429 million a year earlier[16]. - The company reported a net cash used in investing activities of $641.444 million, an increase from $503.191 million in the prior year[16]. - Proceeds from long-term borrowings amounted to $328.326 million, a decrease from $898.443 million in the previous year[16]. - The company made acquisitions of certain businesses totaling $342.633 million, up from $264.393 million in the previous year[16]. - The Company completed the acquisition of Union Supply Group for $202.6 million on June 2, 2022, with a contingent consideration liability of $40.2 million recorded[41]. - The acquisition of Union Supply resulted in approximately $21.1 million in revenues for the three and nine months ended July 1, 2022, with net income being immaterial[47]. - The Company acquired Next Level Hospitality for $226.1 million on June 4, 2021, with contingent consideration of $78.4 million recorded[49]. Segment Performance - Total FSS United States revenue for the three months ended July 1, 2022, was $2,481.5 million, a 50.4% increase from $1,649.6 million in the prior year[76]. - Total FSS International revenue for the three months ended July 1, 2022, was $977.7 million, a 34.2% increase from $728.5 million in the same period of 2021[76]. - The company operates in three reportable segments: FSS United States, FSS International, and Uniform, with approximately 71% of global revenue derived from food services[93]. - FSS United States segment revenue for the nine months ended July 1, 2022, reached $7,245.2 million, up from $4,646.4 million in 2021, reflecting a growth of approximately 55.5%[96]. - The company’s FSS International segment revenue for the nine months ended July 1, 2022, was $2,721.8 million, an increase from $2,100.7 million in 2021, representing a growth of approximately 29.5%[96]. Cost and Expenses - The cost of services provided for the nine months ended July 1, 2022, was $10,810,111, an increase from $7,814,008 in the same period of 2021[10]. - Share-based compensation expense increased to $71.799 million from $52.638 million year-over-year[16]. - Personnel costs as a percentage of total cost of services provided decreased to 47.5% and 48.4% during the three and nine month periods ended July 1, 2022, respectively[125]. - Corporate expenses increased by approximately $10.7 million and $20.0 million during the three and nine month periods of fiscal 2022, mainly due to higher share-based compensation[132]. Tax and Regulatory Matters - The effective tax rate for the three and nine month periods of fiscal 2022 was recorded at 28.3% and 23.9%, respectively[127]. - The Company recorded a tax benefit of approximately $8.5 million due to the reversal of a valuation allowance at a subsidiary in the FSS International segment[80]. - The proposed spin-off of Aramark Uniform Services is expected to create additional value for stockholders, although risks and uncertainties remain regarding its execution[6]. - The company plans to spin off its Uniform segment into an independent publicly traded company by the end of fiscal 2023, pending regulatory approvals[112]. Market Conditions and Strategic Initiatives - The ongoing conflict between Russia and Ukraine has impacted supply chains and increased inflation in food and labor costs, affecting the company's operational performance[108]. - The company has implemented enhanced pricing strategies across various sectors, including Education and Sports, to manage inflation and supply chain disruptions[110]. - The company continues to focus on safety and well-being while adapting its business model to the current environment, including managing labor shortages and supply chain challenges[108]. - COVID-19 disruptions negatively impacted the Company's financial results from Q2 FY2020 to H1 FY2021, with improvements noted in the second half of FY2021 and the first nine months of FY2022[40]. Debt and Financing - As of July 1, 2022, total borrowings amounted to $8.16 billion, an increase from $7.45 billion on October 1, 2021, representing an increase of approximately 9.6%[59]. - The company has approximately $873.7 million in outstanding foreign currency borrowings and $848.2 million available under the senior secured revolving credit facility as of July 1, 2022[60]. - The Receivables Facility limit was increased from $400 million to $500 million on June 17, 2022, enhancing capacity by $100 million during the seasonal period from October to March[61]. - The company entered into $700 million notional amount of forward starting interest rate swap agreements to hedge cash flow risks related to variable rate borrowings during the nine months ended July 1, 2022[63]. - The company reported a net of tax gain expected to be reclassified from "Accumulated other comprehensive loss" into earnings over the next twelve months of approximately $18.6 million[70].

Aramark Corporation (NYSE:ARMK) Q3 2022 Earnings Conference Call August 9, 2022 8:30 AM ET Company Participants Felise Kissell - IR & Corporate Affairs Executive John Zillmer - CEO & Director Thomas Ondrof - EVP & CFO Conference Call Participants Toni Kaplan - Morgan Stanley Ian Zaffino - Oppenheimer Heather Balsky - Bank of America Merrill Lynch Harry Martin - Sanford C. Bernstein & Co. Hamzah Mazari - Jefferies Andrew Steinerman - JPMorgan Chase & Co. Shlomo Rosenbaum - Stifel, Nicolaus & Company Andrew W ...