Founded on food, focused on service. Q1 Earnings Call November 4, - PowerPoint PPT Presentation

Founded on food, focused on service. Q1 Earnings Call • November 4, 2015

Forward Looking Statements • This presentation includes, and our response to various questions may include, certain forward ‐ looking statements, estimates, and projections with respect to our anticipated future performance, including the statements in the “Fiscal 2016 Outlook” section of this presentation (collectively, “Forward ‐ Looking Statements”). Words such as “estimates,” “expects,” “contemplates,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts,” “may,” “could,” “should,” and variations of such words or similar expressions are intended to identify Forward ‐ Looking Statements. • Forward ‐ Looking Statements reflect various assumptions of the Company’s management that may or may not prove to be correct and are not guarantees of the Company’s future performance or results. The Company’s actual results could differ materially from those anticipated in the Forward ‐ Looking Statements. • These Forward ‐ Looking Statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in our Prospectus dated October 1, 2015, which was filed with the Securities and Exchange Commission (the “SEC”) pursuant to Rule 424(b) of the Securities Act on October 2, 2015, as such factors may be updated from time to time in the Company’s periodic filings with the SEC and which are accessible on the SEC’s website at www.sec.gov. • The Company is not required and does not intend to update or alter any Forward ‐ Looking Statements in this presentation or any other information that may be furnished to any recipient, whether as a result of new information, future events or otherwise. 1

Statement Regarding Non-GAAP Financial Measures • This presentation includes several financial measures that are not calculated in accordance with the GAAP, including EBITDA, Adjusted EBITDA, Adjusted Cost of Goods Sold, Adjusted Gross Profit, Adjusted Operating Expense, Adjusted Operating Profit, Adjusted Net Income, and Adjusted Diluted Earnings per Share. • Such measures are not recognized terms under GAAP, should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP and are not indicative of net income (loss) as determined under GAAP. • EBITDA, Adjusted EBITDA, Adjusted Cost of Goods Sold, Adjusted Gross Profit, Adjusted Operating Expense, Adjusted Operating Profit, Adjusted Net Income, and Adjusted Diluted Earnings per Share and other non-GAAP financial measures have limitations that should be considered before using these measures to evaluate the Company’s liquidity or financial performance. • EBITDA, Adjusted EBITDA, Adjusted Cost of Goods Sold, Adjusted Gross Profit, Adjusted Operating Expense, Adjusted Operating Profit, Adjusted Net Income, and Adjusted Diluted Earnings per Share, as presented, may not be comparable to similarly titled measures of other companies because of varying methods of calculation. 2

George Holm Chief Executive Officer

PFG at a Glance Third largest foodservice distributor in the U.S. • FY2015 Net Sales FY2015 Segment EBIT $15.3 billion in FY2015 Net Sales – $329 million in FY2015 Adjusted EBITDA 1 – Vistar Performance Performance 16% Foodservice Foodservice Participates in the growing $240 billion 59% • 63% Vistar PFG 30% foodservice distribution industry Customized 25% Serves a diverse mix of customers across a • broad variety of food-away-from-home concepts PFG Customized 7% Key Company Metrics Locations Served • Restaurants • Hotels Products Suppliers Employees • Schools 5,000+ 150,000+ 12,000+ • Hospitals • Theaters Customer • Distribution Vehicles Big box retailers Locations Centers 2,500+ • 68 150,000+ Business and industry locations 4 1 For reconciliation of non-GAAP to GAAP measures see slides 15 and 16 Source: Performance Food Group reports

Q1 FY2016 Results • Case volume growth of 5.1% • Net Sales increased 6.3% to $3.9 billion • Gross Profit increased 7.1% to $481.1 million • Net Income increased 84.8% to $12.2 million • Adj. EBITDA 1 increased 14.1% to $80.1 million • Adj. Net Income 1 increased 65.5% to $18.2 million 5 1 For reconciliation of non-GAAP to GAAP measures see slides 15 and 16 Source: Performance Food Group reports

Keys to the Quarter • Grew case sales faster than the forecasted industry average • Expanded profit margins ̶ Sold a more profitable mix of channels and products ̶ Controlled Operating Expenses • Decreased seasonal investment in cash flow 6 Source: Performance Food Group reports

Segment Results Net Sales EBITDA $ MM $ vs. PY $ MM $ vs. PY Performance 2,368 + 5.2% 70.5 + 27.0% Foodservice PFG 927 + 6.7% 7.3 (3.9%) Customized Vistar 632 + 9.8% 22.4 (6.7%) 7 Source: Performance Food Group reports

Bob Evans Chief Financial Officer

Q1 Financial Results $ million, except per share Q1 FY2016 Q1 FY2015 Growth Cases + 5.1% Net Sales 3,928.9 3,697.6 + 6.3% Gross Profit 481.1 449.4 + 7.1% Operating Expense 437.1 416.7 + 4.9% Operating Profit 44.0 32.7 + 34.6% Net Income 12.2 6.6 + 84.8% Diluted EPS $0.14 $0.08 + 75.0% Adjusted EBITDA 1 80.1 70.2 + 14.1% Adj. EBITDA/Gross Profit 1 16.6% 15.6% + 103 bps Adjusted Net Income 1 18.2 11.0 + 65.5% Adjusted Diluted EPS 1 $0.21 $0.13 + 61.5% 9 1 For reconciliation of non-GAAP to GAAP measures see slides 15 and 16 Source: Performance Food Group reports

̶ ̶ PFG IPO • IPO offering completed October 6, 2015 • 16,675,000 shares at $19.00 per share 12,777,325 primary shares sold by PFG 3,897,675 secondary shares sold by certain selling shareholders, which included shares sold pursuant to a fully exercised over allotment option • $223.7MM net proceeds to company • Net proceeds used to retire a portion of second lien term loan 10 Source: Performance Food Group reports

̶ ̶ ̶ ̶ ̶ ̶ Q1 Cash Flow • Three primary uses of cash: Working capital to support growth Capital expenditures Acquisitions • Operating Cash Flow Q1 FY2016 investment: ($25.9MM) Q1 FY2015 investment: ($82.7MM) Improvement vs. PY: $56.8MM 11 Source: Performance Food Group reports

̶ ̶ ̶ ̶ ̶ ̶ Q1 Balance Sheet • Net Debt Q1 FY2015 quarter end: $1,557.6MM Q1 FY2016 quarter end: $1,485.7MM Improvement vs. PY: $ 71.9MM • Net Debt / TTM Adjusted EBITDA 1 leverage Q1 FY2016 quarter end: 4.4X Post-IPO Pro Forma: 3.7X Improvement: 0.7X 12 1 For reconciliation of non-GAAP to GAAP measures see slides 15 and 16 Source: Performance Food Group reports

̶ ̶ ̶ ̶ ̶ ̶ ̶ ̶ Fiscal 2016 Outlook • Fiscal 2016 Adjusted EBITDA 1 growth versus PY outlook: 53 vs. 52 weeks: 9 – 12% 52 vs. 52 weeks: 7 – 10% • Other key annual assumptions: Organic case growth: 3 – 5% (52 vs. 52 weeks) Interest expense: $72 - $78MM Effective tax rate: 41% Annual weighted average diluted shares: ~100MM Capital expenditures: $125 - $150MM Depreciation and amortization: $115 - $125MM 13 1 For reconciliation of non-GAAP to GAAP measures see slides 15 and 16 Source: Performance Food Group reports

What we really do is deliver. 14

Non-GAAP Financial Measures Source: Performance Food Group reports 15

Non-GAAP Financial Measures (A) Includes adjustments for interest rate swap hedge ineffectiveness, adjustments to reflect certain assets held for sale to their net realizable value, non-cash charges arising from employee stock options, and changes in fair value of fuel collar instruments. In addition, this includes a decrease of LIFO reserve of $1.7 million for first quarter of fiscal 2016 and an increase of LIFO reserve of $1.8 million for the first quarter of fiscal 2015. (B) Includes professional fees and other costs related to completed and abandoned acquisitions, costs of integrating certain of our facilities, facility closing costs, and advisory fees paid to the Sponsors. (C) Consists of a withdrawal expense from a purchasing cooperative of which we are a member and pre- acquisition worker’s compens ation claims related to an insurance company that went into liquidation. (D) Consists primarily of professional fees and related expenses associated with the Winning Together program and other productivity initiatives. (E) Consists primarily of costs related to certain financing transactions, lease amendments, and franchise tax expense and other adjustments permitted under our credit agreements. (F) The Adjusted Net Income and Adjusted Diluted Earnings per Share impacts are shown net of tax. Tax impact of adjustments for certain items was $4.1 million and $3.1 million for the three months ended September 26, 2015 and September 27 2014, respectively. Amounts are calculated by multiplying the impact of each item by each quarter’s effective tax rate. Source: Performance Food Group reports 16