GlobeNewswire Inc | Aug 10, 2021 08:00AM EDT

August 10, 2021

HOUSTON, Aug. 10, 2021 (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE: SYY) today announced financial results for its 14-week fourth fiscal quarter and its fiscal year ended July 3, 2021.

Key highlights for the fourth quarter of fiscal year 2021 included:

-- Sales were stronger than expected; -- Share gains continue, driven by new customer wins; -- Syscos Recipe for Growth strategy advances; -- Inflation effectively managed; -- Cash flow stronger than expected, even with significant inventory investments; -- International operations show profit improvement; -- Greco and Sons transaction to close imminently; -- Quarterly dividend increased, maintaining Dividend Aristocrat status; and -- Currently no signs of Delta variant impacting demand; strong July sales.

Syscos fourth quarter results were strong, reflecting market share gains and industry demand that has continued to rebound earlier and stronger than expected, said Kevin Hourican, Syscos president and chief executive officer. While labor and product availability costs are pressuring our industry, we planned ahead to be well-positioned and manage through the demand increase resulting from these transitory pressures. I want to thank all of our Sysco associates for their tireless efforts, in particular those on the frontline who are supporting our customers during one of the most dynamic periods in our history. It is through the collective efforts and commitment of our people that we are advancing our Recipe for Growth strategy, and building important new capabilities that position us to better serve our customers and accelerate profitable growth.

Key financial results for the fourth quarter of fiscal year 2021 included:

-- Sales trends improved as markets reopened; fourth quarter sales increased 82.0% versus the same period in fiscal year 2020 and increased 4.3% versus the same period in fiscal year 2019; -- Gross profit increased 86.2% to $2.9 billion, and gross margin increased 41 basis points to 18.1%, as compared to the same period last year; -- Operating income increased 207.2% to $569.7 million, and adjusted1 operating income increased to $605.2 million, as compared to the same period last year; -- Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $778.6 million, and adjusted EBITDA increased to $781.1 million, as compared to the same period last year;2

_____________________________________1 Adjusted financial results, including adjusted operating income (loss), adjusted operating expenses, and adjusted Earnings Per Share (EPS), are non-GAAP financial measures that exclude certain items, which primarily include adjustments to our bad debt reserve specific to aged receivables existing prior to the COVID-19 pandemic, goodwill impairment charges, restructuring costs, transformational project costs and acquisition-related costs. Specific to adjusted EPS, this years fourth quarter and fiscal 2021 Certain Items include the impact of a gain on sale of property and the impact of a U.K. tax law change. The fiscal 2021 Certain Items include the impact of a loss on the sale of Cake Corporation and our Spain operations. Reconciliations of all non-GAAP financial measures to the nearest respective GAAP financial measure are included at the end of this release.2EBITDA and adjusted EBITDA are non-GAAP financial measures. Reconciliations of all non-GAAP financial measures to the nearest respective GAAP financial measure are included at the end of this release.

-- Earnings per share (EPS)3 increased to $0.29 compared to a loss per share of $1.22 in the same period last year; and adjusted1 EPS increased to $0.71 compared to a loss per share of $0.29 in the same period last year.

Key financial results for fiscal year 2021 include:

-- Sales decreased 3.0% to $51.3 billion versus fiscal year 2020 and decreased 14.7% versus fiscal year 2019; -- Gross profit decreased 5.5% to $9.4 billion, and gross margin decreased 48 basis points to 18.2%, as compared to the prior year; -- Operating income increased 91.8% to $1.4 billion, and adjusted operating income decreased 14.7% to $1.5 billion, as compared to the prior year; -- EBITDA increased 46.1% to $2.2 billion, and adjusted EBITDA decreased 9.1% to $2.2 billion, as compared to the prior year;2 -- EPS increased to $1.02 compared to $0.42 in the prior year; adjusted1 EPS decreased to $1.44 compared to $2.01 in the prior year; -- Cash flow from operations increased 17.6% to $1.9 billion, and free cash flow4 increased 61.0% to $1.5 billion, as compared to the prior year; and -- The company exceeded its cash flow from operations guidance and reduced debt more than planned, totaling $3.4billion in debt reduction during the year.

Were very pleased with our financial results in the fourth quarter, including particularly strong free cash flow performance, said Aaron Alt, Syscos chief financial officer. Strong sales that surpassed 2019 levels, combined with solid management of inflation and cost, are underpinning our confidence to raise our EPS guidance for fiscal year 2022 to $3.33 to $3.53.

Fourth Quarter Fiscal 2021 Results

Total Sysco

Sales for the fourth quarter were $16.1 billion, an increase of 82.0% compared to the same period last year. The exit rate for the fourth quarter was stronger than the overall quarter, as select geographic markets in which we operate continue to drive the recovery as restrictions ease.

Gross profit increased 86.2% to $2.9 billion, and gross margin increased 41 basis points to 18.1%, compared in each case to the same period last year. The increase in gross profit for the fourth quarter was primarily driven by higher volumes as COVID-19 restrictions continued to ease.

Operating expenses increased $248.9 million, or 11.9%, compared to the same period last year, driven by increased volume, one-time expenses associated with the snap-back, and investments against our transformation initiatives. Adjusted operating expenses increased $711.1 million, or 44.5%, compared to the same period last year.

Operating income was $569.7 million, an increase of $1.1 billion, or 207.2%, compared to the same period last year. Adjusted operating income was $605.2 million, an increase of $639.1 million compared to the same period last year.

U.S. Foodservice Operations

The U.S. Foodservice Operations segment saw both local sales and case growth increase versus fiscal year 2019.

Sales for the fourth quarter were $11.5 billion, an increase of 88.4% compared to the same period last year. Local case volume within U.S. Broadline operations increased 74.3% for the fourth quarter, while total case volume within U.S. Broadline operations increased 71.4%. Both increases represent organic growth.

_____________________________________3Earnings Per Share (EPS) are shown on a diluted basis unless otherwise specified.4Free cash flow is a non-GAAP measure that represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. Reconciliations for all non-GAAP measures are included at the end of this release.

Gross profit increased 90.0% to $2.2 billion, and gross margin increased 17 basis points to 19.2%, compared in each case to the same period last year. Product cost inflation was 10.2% in U.S. Broadline, as measured by the estimated change in Syscos product costs, primarily in the poultry, meat, and paper and disposables categories.

Operating expenses increased $252.4 million, or 22.4%, compared to the same period last year. Adjusted operating expenses increased $396.6 million, or 39.6%, compared to the same period last year.

Operating income was $837.4 million, an increase of $796.8 million, compared to the same period last year. Adjusted operating income was $817.6 million, an increase of $652.7 million, compared to the same period last year.

International Foodservice Operations

The International Foodservice Operations segment experienced expected operating income improvement compared to the prior quarter and prior year.

Sales for the fourth quarter were $2.5 billion, an increase of 83.4% compared to the same period last year. On a constant currency basis, sales for the fourth quarter were $2.2 billion, an increase of 65.2% compared to the same period last year. Foreign exchange rates increased International Foodservice Operations sales by 18.1% and total Sysco sales by 2.9% during the quarter.

Gross profit increased 88.6% to $496.0 million, and gross margin increased 54 basis points to 19.9%, compared in each case to the same period last year. On a constant currency basis, gross profit increased 70.4% to $448.2 million. Foreign exchange rates increased International Foodservice Operations gross profit by 18.2% and total Sysco gross profit by 3.2% during the quarter.

Operating expenses decreased $113.9 million, or 17.8%, compared to the same period last year. Adjusted operating expenses increased $163.0 million, or 48.9%, compared to the same period last year mainly due to transformation costs incurred in fiscal year 2020. On a constant currency basis, adjusted operating expenses increased $118.3 million, or 35.5%, compared to the same period last year. Foreign exchange rates increased International Foodservice Operations operating expense by 13.4% and total Sysco operating expense by 3.0% during the quarter.

The International Foodservice Operations segment delivered an operating loss of $30.4 million, an improvement of $346.9 million compared to the same period last year. Adjusted operating income increased $70.0 million compared to the same period last year, resulting in break-even operating profit for the quarter. On a constant currency basis, adjusted operating loss was $3.1 million, an improvement of $66.9 million compared to the same period last year. Foreign exchange rates decreased International Foodservice Operations operating loss by $3.1 million and reduced total Sysco operating income by $2.5 million during the quarter.

Fiscal 2021 Results

Total Sysco

Sales for fiscal 2021 were $51.3 billion, a decrease of 3.0% compared to the prior year. The exit rate for the year was strong, as select geographic markets continued to drive the recovery due primarily to easing restrictions in the areas in which we operate.

Gross profit decreased 5.5% to $9.4 billion, and gross margin decreased 48 basis points to 18.2%, compared in each case to the prior year. The decline in gross profit for the year was primarily driven by lower volumes due to COVID.

Operating expenses decreased $1.2 billion, or 13.5%, compared to the prior year, driven by lower volumes due to COVID and successful achievement of cost-out program initiatives. Adjusted operating expenses decreased $293.1 million, or 3.6%, compared to the prior year.

Operating income was $1.4 billion, an increase of $687.7 million, or 91.8%, compared to the prior year. Adjusted operating income was $1.5 million, a decrease of $251.8 million, or 14.7%, compared to the prior year.

U.S. Foodservice Operations

Sales for fiscal 2021 were $35.7 billion, a decrease of 2.9% compared to the prior year. Local case volume within U.S. Broadline operations decreased 1.1% for fiscal 2021, of which a decrease of 1.2% was organic, while total case volume within U.S. Broadline operations decreased 5.8%, of which a decrease of 5.9% was organic.

Gross profit decreased 3.4% to $7.0 billion, and gross margin decreased 11 basis points to 19.6%, compared in each case to the prior year. Product cost inflation was 4.3% in U.S. Broadline, as measured by the estimated change in Syscos product costs, primarily in the paper and disposables, poultry, and meat categories.

Operating expenses decreased $699.4 million, or 13.3%, compared to the prior year. Adjusted operating expenses decreased $319.7 million, or 6.4%, compared to the prior year.

Operating income was $2.5 billion, an increase of $453.4 million, or 22.6%, compared to the prior year. Adjusted operating income was $2.3 billion, an increase of $73.6 million, or 3.3%, compared to the prior year.

International Foodservice Operations

Sales for fiscal 2021 were $8.4 billion, a decrease of $1.3 billion, or 13.7%, compared to the prior year. On a constant currency basis, sales for fiscal 2021 were $7.9 billion, a decrease of 18.3% compared to the prior year. Foreign exchange rates increased International Foodservice Operations sales by 4.6% and total Sysco sales by 0.9% during the year.

Gross profit decreased 15.8% to $1.6 billion, and gross margin decreased 51 basis points to 19.7%, compared in each case to the prior year. On a constant currency basis, gross profit decreased 20.5% to $1.6 billion, as compared to the prior year. Foreign exchange rates increased International Foodservice Operations gross profit by 4.7% and total Sysco gross profit by 1.0% during the year.

Operating expenses decreased $448.7 million, or 19.3%, compared to the prior year. Adjusted operating expenses decreased $72.9 million, or 3.9%, compared to the prior year. On a constant currency basis, adjusted operating expenses decreased $173.9 million, or 9.4%, compared to the prior year. Foreign exchange rates increased International Foodservice Operations operating expense by 5.5% and total Sysco operating expense by 1.3% during the year.

The International Foodservice Operations segment delivered an operating loss of $232.4 million, an improvement of $139.0 million compared to the prior year. Adjusted operating loss was $128.8 million, a decrease of $236.8 million, or 219.2%, compared to the prior year. On a constant currency basis, adjusted operating loss was $119.3 million, a decrease of $227.3 million, or 210.4%, compared to the prior year. Foreign exchange rates increased International Foodservice Operations operating loss by 8.8% and reduced total Sysco operating income by 0.6% during the year.

Balance Sheet, Capital Spending and Cash Flow

Capital expenditures, net of proceeds from sales of plant and equipment, for fiscal 2021 were $280.2 million lower compared to the prior year.

Cash flow from operations was $1.9 billion for fiscal 2021, which was $285.2 million higher compared to the prior year. Free cash flow4 for fiscal 2021 was $1.5 billion, which was $565.3 million higher compared to the prior year. The improvement in cash flow was driven by higher earnings, improved working capital, lower capital spending and lower cash taxes paid during the year.

Conference Call & Webcast

Sysco will host a conference call to review the companys fourth quarter and full fiscal 2021 financial results on Tuesday, August10, 2021, at 10:00 a.m. Eastern. A live webcast of the call, accompanying slide presentation and a copy of this news release will be available online at investors.sysco.com.

Key Highlights:

14-Week Period Ended 53-Week Period Ended Financial Comparison: July 3, 2021 Change July 3, 2021 ChangeSales $16.1 billion 82.0% $51.3 billion -3.0%Gross profit $2.9 billion 86.2% $9.4 billion -5.5%Gross Margin 18.1% 41 bps 18.2% -48 bps GAAP: Operating expenses $2.3 billion 11.9% $7.9 billion -13.5%Certain Items $35.5 million -92.9% $22.9 million -97.6%Operating Income $569.7 207.2% $1.4 billion 91.8% millionOperating Margin 3.5% 953 bps 2.8% 138 bpsNet Earnings $151.1 124.4% $524.2 143.3% million millionDiluted Earnings Per Share $0.29 123.8% $1.02 142.9% Non-GAAP ^(1): Operating Expenses $2.3 billion 44.5% $7.9 billion -3.6%Operating Income $605.2 NM $1.5 billion -14.7% millionOperating Margin 3.8% 413 bps 2.8% -39 bpsEBITDA $778.6 NM $2.2 billion 46.1% millionAdjusted EBITDA $781.1 NM $2.2 billion -9.1% millionNet Earnings $366.3 NM $740.4 -28.3% million millionDiluted Earnings Per Share ^(2) $0.71 NM $1.44 -28.4% Case Growth: U.S. Broadline 71.4% -5.8% Local 74.3% -1.1% Sysco Brand Sales as a % of Cases: U.S. Broadline 37.7% 75 bps 37.6% -87 bpsLocal 45.3% 26 bps 44.6% -212 bps

Note:

(1)Reconciliations of all non-GAAP financial measures to the nearest respective GAAP financial measures are included at the end of this release.(2) Individual components in the table above may not sum to the totals due to the rounding.NM represents that the percentage change is not meaningful.

Forward-Looking Statements

Statements made in this press release or in our earnings call for the fourth quarter of fiscal 2021 that look forward in time or that express managements beliefs, expectations or hopes are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the views of management at the time such statements are made and are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual results to differ materially from current expectations. These statements include statements concerning: the effect, impact, potential duration or other implications of the coronavirus (COVID-19) pandemic and any expectations we may have with respect thereto, including the extent and duration of lockdowns in the U.S. and Europe; our expectations regarding the pace and timing of the business recovery; our belief in Syscos ability to take market share, and our expectations regarding future market share gains in fiscal 2022 and 2024; our expectations regarding the continuation of an inflationary environment and our strategies to combat the short- and medium-term impacts of inflation; our expectations regarding improvements in the travel, hospitality and foodservice management sectors of our business; our expectations regarding the positive impact that increased sales and disciplined expense management will have on our international results; our expectations that we will benefit significantly in fiscal 2022 from improving international financials; our expectations regarding the installation of our new pricing systems nationally by the end of calendar year 2021; statements relating to our ability to accelerate profitable growth; our expectations regarding the timing of the closing of the Greco and Sons acquisition and the impact of the acquisition on our business; our expectations regarding our ability to grow faster than the total market in fiscal 2022 and fiscal 2024; our plans and expectations regarding the Sysco Driver Academy; statements regarding our savings goals from fiscal 2023 through fiscal 2024; the effects of our continuing investments in digital technology; our ability to deliver against our strategic priorities; statements regarding economic trends in the United States and abroad; our plans to reduce indebtedness by the end of fiscal 2022, including the repayment of notes in fiscal 2022; our commitments to further reduce debt in fiscal 2022; our expectations regarding our ability to hit our leverage target; our expectations regarding our dividend payments in calendar year 2022; statements regarding cost-out programs and benefits associated with our growth initiatives in both fiscal 2023 and 2024, including rates of growth and share gains; our expectations regarding gross profits and sales in fiscal 2022; our expectations regarding the effects of our cost savings, including effects on profit growth; the pace of implementation of our business transformation initiatives; our expectations regarding the ability of our transformational initiatives to drive future value; our expectations regarding our overall effective tax rate in fiscal 2022; our expectations regarding our earnings per share and adjusted earnings per share in fiscal 2022; our expectations regarding capital expenditures and our net debt to EBITDA target; our plans to maintain a strong balance sheet; our expectations that we will have more than adequate capital for our planned investments; our expectations regarding our share repurchase program; our expectations regarding the return of capital to shareholders in fiscal 2022; our expectations regarding cash from operations; our commitments to responsible growth and efficiency improvements; our projections regarding lower restrictions and improving sales in fiscal 2022; our projections regarding higher sales, gross profits, and operating income as markets reopen following the COVID-19 crisis; statements concerning our focus on private brand sales in fiscal 2022; our commitments to add new leadership in international markets and enhanced strategies to boost performance in fiscal 2022; statements relating to the impact of acquisition-related intangible amortization and associated expenses; statements relating to managements usage of free cash flow; our expectations that the reimposition of additional COVID-19 restrictions would not have as severe an impact on our business as in the prior year; our expectations regarding the impact of the Delta variant on demand; our statements concerning temporary wage actions in the upcoming business recovery period; and statements concerning our implementation of cost-out programs to fund the snap-back and our growth agenda.

The success of our plans and expectations regarding our operating performance are subject to the general risks associated with our business, including the risks of interruption of supplies due to lack of long-term contracts, severe weather, crop conditions, work stoppages, intense competition, technology disruptions, dependence on large, long-term regional and national customers, inflation risks, the impact of fuel prices, adverse publicity, labor issues, political or financial instability, trade restrictions, tariffs, currency exchange rates, transport capacity and costs and other factors relating to foreign trade, any or all of which could delay our receipt of product or increase our input costs. Risks and uncertainties also include the impact and effects of public health crises, pandemics and epidemics, such as the COVID-19 pandemic, and the adverse impact thereof on our business, financial condition and results of operations, including, but not limited to, our growth, product costs, supply chain, labor availability, logistical capabilities, customer demand for our products and industry demand generally, consumer spending, our liquidity, the price of our securities and trading markets with respect thereto, our credit ratings, our ability to maintain compliance with the covenants in our credit agreement, our ability to access capital markets, and the global economy and financial markets generally. Risks and uncertainties also include risks impacting the economy generally, including the risks that the current general economic conditions will deteriorate, or consumer confidence in the economy or consumer spending, particularly on food-away-from-home, may decline. Market conditions may not improve. Competition and the impact of GPOs may reduce our margins and make it difficult for us to maintain our market share, growth rate and profitability. We may not be able to fully compensate for increases in fuel costs, and fuel hedging arrangements intended to contain fuel costs could result in above market fuel costs. Our ability to meet our long-term strategic objectives depends on our ability to grow gross profit, leverage our supply chain costs and reduce administrative costs. This will depend largely on the success of our various business initiatives, including efforts related to revenue management, expense management, our digital e-commerce strategy and any efforts related to restructuring or the reduction of administrative costs. There are various risks related to these efforts, including the risk that if sales from our locally managed customers do not grow at the same rate as sales from regional and national customers, or if we are unable to continue to accelerate local case growth, our gross margins may decline; the risk that we are unlikely to be able to predict inflation over the long term, and lower inflation is likely to produce lower gross profit; the risk that our efforts to mitigate increases in warehouse costs may be unsuccessful; the risk that we may not be able to accelerate and/or identify additional administrative cost savings in order to compensate for any gross profit or supply chain cost leverage challenges; the risk that these efforts may not provide the expected benefits in our anticipated time frame, if at all, and may prove costlier than expected; the risk that the actual costs of any initiatives may be greater or less than currently expected; and the risk of adverse effects to our business, results of operations and liquidity if past and future undertakings, and the associated changes to our business, do not prove to be cost effective or do not result in the cost savings and other benefits at the levels that we anticipate. Our plans related to and the timing of any initiatives are subject to change at any time based on managements subjective evaluation of our overall business needs. If we are unable to realize the anticipated benefits from our efforts, we could become cost disadvantaged in the marketplace, and our competitiveness and our profitability could decrease. Adverse publicity about us or lack of confidence in our products could negatively impact our reputation and reduce earnings. Capital expenditures may vary based on changes in business plans and other factors, including risks related to the implementation of various initiatives, the timing and successful completion of acquisitions, construction schedules and the possibility that other cash requirements could result in delays or cancellations of capital spending. Periods of significant or prolonged inflation or deflation, either overall or in certain product categories, can have a negative impact on us and our customers, as high food costs can reduce consumer spending in the food-away-from-home market, and may negatively impact our sales, gross profit, operating income and earnings, and periods of deflation can be difficult to manage effectively. Fluctuations in inflation and deflation, as well as fluctuations in the value of foreign currencies, are beyond our control and subject to broader market forces. Expanding into international markets presents unique challenges and risks, including compliance with local laws, regulations and customs and the impact of local political and economic conditions, including the impact of Brexit and the yellow vest protests in France against a fuel tax increase, pension reform and the French government, and such expansion efforts may not be successful. Any business that we acquire may not perform as expected, and we may not realize the anticipated benefits of our acquisitions. Expectations regarding the financial statement impact of any acquisitions may change based on managements subjective evaluation. A divestiture of one or more of our businesses may not provide the anticipated effects on our operations. Meeting our dividend target objectives depends on our level of earnings, available cash and the success of our various strategic initiatives. Changes in applicable tax laws or regulations and the resolution of tax disputes could negatively affect our financial results. We rely on technology in our business and any cybersecurity incident, other technology disruption or delay in implementing new technology could negatively affect our business and our relationships with customers. For a discussion of additional factors impacting Syscos business, see our Annual Report on Form 10-K for the year ended June 27, 2020, as filed with the SEC, and our subsequent filings with the SEC. We do not undertake to update our forward-looking statements, except as required by applicable law.

About Sysco

Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. With more than 58,000 associates, the company operates 343 distribution facilities worldwide and serves more than 650,000 customer locations. For fiscal 2021 that ended July 3, 2021, the company generated sales of more than $51 billion. Information about our CSR program, including Syscos 2020 Corporate Social Responsibility Report, can be found at sysco.com/csr2020report.

For more information, visit www.sysco.comor connect with Sysco on Facebook at www.facebook.com/SyscoFoods. For important news and information regarding Sysco, visit the Investor Relations section of the companys Internet home page at investors.sysco.com, which Sysco plans to use as a primary channel for publishing key information to its investors, some of which may contain material and previously non-public information. In addition, investors should continue to review our news releases and filings with the SEC. It is possible that the information we disclose through any of these channels of distribution could be deemed to be material information.

Sysco Corporation and its Consolidated SubsidiariesCONSOLIDATED RESULTS OF OPERATIONS(In Thousands, Except for Share and Per Share Data)

Quarter Ended Year Ended Jul. 3, 2021 Jun. 27, 2020 Jul. 3, 2021 Jun. 27, 2020 Sales $ 16,136,893 $ 8,866,564 $ 51,297,843 $ 52,893,310 Cost of 13,221,115 7,300,909 41,941,094 42,991,646 salesGross 2,915,778 1,565,655 9,356,749 9,901,664 profitOperating 2,346,094 2,097,235 7,919,507 9,152,159 expensesOperatingincome 569,684 (531,580 ) 1,437,242 749,505 (loss)Interest 441,149 164,269 880,137 408,220 expenseOther(income) (13,483 ) 40,396 (27,623 ) 47,901 expense,netEarnings(loss)before 142,018 (736,245 ) 584,728 293,384 incometaxesIncome (9,075 ) (117,826 ) 60,519 77,909 taxesNetearnings $ 151,093 $ (618,419 ) $ 524,209 $ 215,475 (loss) Netearnings (loss):Basicearnings $ 0.29 $ (1.22 ) $ 1.03 $ 0.42 (loss) pershareDilutedearnings 0.29 (1.22 ) 1.02 0.42 (loss) pershare Averageshares 512,423,938 508,296,452 510,696,398 510,121,071 outstandingDilutedshares 516,036,842 508,296,452 513,555,088 514,025,974 outstanding

Sysco Corporation and its Consolidated SubsidiariesCONSOLIDATED BALANCE SHEETS(In Thousands, Except for Share Data)

Jul. 3, 2021 Jun. 27, 2020 ASSETSCurrent assets Cash and cash equivalents $ 3,007,123 $ 6,059,427 Accounts receivable, less allowances of 3,781,510 2,893,551 $117,695 and $334,810Inventories 3,695,219 3,095,085 Prepaid expenses and other current assets 240,956 192,163 Income tax receivable 8,759 108,006 Total current assets 10,733,567 12,348,232 Plant and equipment at cost, less 4,326,063 4,458,567 accumulated depreciationOther long-term assets Goodwill 3,944,139 3,732,469 Intangibles, less amortization 746,073 780,172 Deferred income taxes 352,523 194,115 Operating lease right-of-use assets, net 709,163 603,616 Other assets 602,011 511,095 Total other long-term assets 6,353,909 5,821,467 Total assets $ 21,413,539 $ 22,628,266 LIABILITIES AND SHAREHOLDERS? EQUITYCurrent liabilities Notes payable $ 8,782 $ 2,266 Accounts payable 4,884,781 3,447,065 Accrued expenses 1,814,837 1,616,289 Accrued income taxes 22,644 2,938 Current operating lease liabilities 102,659 107,167 Current maturities of long-term debt 486,141 1,542,128 Total current liabilities 7,319,844 6,717,853 Long-term liabilities Long-term debt 10,588,184 12,902,485 Deferred income taxes 147,066 86,601 Long-term operating lease liabilities 634,481 523,496 Other long-term liabilities 1,136,480 1,204,953 Total long-term liabilities 12,506,211 14,717,535 Commitments and contingencies Noncontrolling interest 34,588 34,265 Shareholders? equity Preferred stock, par value $1 per share ? ? Authorized 1,500,000 shares, issued noneCommon stock, par value $1 per shareAuthorized 2,000,000,000 shares, issued 765,175 765,175 765,174,900 sharesPaid-in capital 1,619,995 1,506,901 Retained earnings 10,151,706 10,563,008 Accumulated other comprehensive loss (1,148,764 ) (1,710,881 ) Treasury stock at cost, 253,342,595 and (9,835,216 ) (9,965,590 ) 256,915,825 sharesTotal shareholders? equity 1,552,896 1,158,613 Total liabilities and shareholders? equity $ 21,413,539 $ 22,628,266

Sysco Corporation and its Consolidated SubsidiariesCONSOLIDATED CASH FLOWS(In Thousands)

53-Week Period Ended Jul. 3, 2021 Jun. 27, 2020Cash flows from operating activities: Net earnings $ 524,209 $ 215,475 Adjustments to reconcile net earnings to cash provided by operating activities:Share-based compensation expense 95,815 42,234 Depreciation and amortization 737,916 805,765 Operating lease asset amortization 113,906 108,376 Amortization of debt issuance and other 26,115 22,663 debt-related costsDeferred income taxes (157,864 ) (191,317 ) Provision for losses on receivables (152,740 ) 404,158 Loss on extinguishment of debt 293,897 ? Loss on sale of businesses 22,737 ? Goodwill impairment ? 203,206 Impairment of assets held for sale ? 55,942 Other non-cash items (16,502 ) (525 ) Additional changes in certain assets andliabilities, net of effect of businesses acquired:(Increase) decrease in receivables (662,345 ) 915,717 (Increase) decrease in inventories (551,405 ) 114,563 (Increase) decrease in prepaid expenses and (32,577 ) 9,835 other current assetsIncrease (decrease) in accounts payable 1,459,222 (834,118 ) Increase (decrease) in accrued expenses 167,181 (139,891 ) Decrease in operating lease liabilities (142,351 ) (124,040 ) Increase (decrease) in accrued income taxes 118,953 (102,678 ) Decrease in other assets 18,822 20,666 Increase in other long-term liabilities 40,853 92,649 Net cash provided by operating activities 1,903,842 1,618,680 Cash flows from investing activities: Additions to plant and equipment (470,676 ) (720,423 ) Proceeds from sales of plant and equipment 59,147 28,717 Acquisition of businesses, net of cash ? (142,780 ) acquiredPurchase of marketable securities (53,148 ) (11,424 ) Proceeds from sales of marketable securities 35,979 20,532 Other investing activities ? 69,071 Net cash used for investing activities (428,698 ) (756,307 ) Cash flows from financing activities: Bank and commercial paper (repayments) (826,182 ) 616,657 borrowings, netOther debt borrowings 1,484 6,783,562 Other debt repayments (2,003,135 ) (1,119,232 ) Tender and redemption premiums for senior (999,996 ) ? notesProceeds from stock option exercises 130,374 227,602 Stock repurchases ? (844,699 ) Dividends paid (917,564 ) (856,312 ) Other financing activities ^(1) (13,209 ) (87,778 ) Net cash (used for) provided by financing (4,628,228 ) 4,719,800 activities Effect of exchange rates on cash, cash 94,614 (18,848 ) equivalents and restricted cash Net (decrease) increase in cash and cash (3,058,470 ) 5,563,325 equivalents ^(2)Cash, cash equivalents and restricted cash at 6,095,570 532,245 beginning of periodCash, cash equivalents and restricted cash at $ 3,037,100 $ 6,095,570 end of period ^(2) Supplemental disclosures of cash flow information:Cash paid during the period for: Interest $ 877,512 $ 325,308 Income taxes, net of refunds 103,547 376,609

(1)Change includes cash paid for shares withheld to cover taxes, debt issuance costs and other financing activities.(2)Change includes restricted cash included within other assets in the Consolidated Balance Sheet.



Sysco Corporation and its Consolidated SubsidiariesNon-GAAP Reconciliation (Unaudited)Impact of Certain Items

Syscos results of operations for fiscal 2021 and fiscal 2020 were impacted by restructuring and transformational project costs consisting of: (1) restructuring charges; (2) expenses associated with our various transformation initiatives; and (3) facility closure and severance charges, and by acquisition-related costs consisting of: (1) intangible amortization expense related to the fiscal 2017 acquisition of Cucina Lux Investments Limited (the Brakes Acquisition); and (2) due diligence and integration costs incurred in fiscal 2021 associated with the acquisition of Greco and Sons, which is expected to close in fiscal 2022. Our results for fiscal 2021 were also impacted by the reduction of bad debt expense previously recognized in fiscal 2020 due to the unexpected impact of the COVID-19 pandemic on the collectability of our pre-pandemic trade receivable balances, as well as non-operating gains and losses including (1) losses on the extinguishment of debt; (2) losses on the sale of businesses; and (3) gains on the sale of property.

Fiscal 2020 results of operations were also negatively impacted by costs arising from the COVID-19 pandemic, the most significant of which were (1) excess bad debt expense, as we experienced an increase in past due receivables and recognized additional bad debt charges; (2) goodwill and intangibles impairment charges; and (3) fixed asset impairment charges. While Sysco traditionally incurs bad debt expense, the magnitude of such expenses and benefits that we have experienced since the onset of the COVID-19 pandemic is not indicative of our normal operations. Our adjusted results have not been normalized in a manner that would exclude the full impact of the COVID-19 pandemic on our business. As such, Sysco has not adjusted its results for lost sales, inventory write-offs or other costs associated with the COVID-19 pandemic not previously stated.

The results of our foreign operations can be impacted due to changes in exchange rates applicable in converting local currencies to U.S. dollars. We measure our total Sysco and our International Foodservice Operations results on a constant currency basis. Constant currency operating results are calculated by translating current-period local currency operating results with the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period. The constant currency impact on our adjusted total Sysco and our adjusted International Foodservice Operations results are disclosed when the impact exceeds a defined threshold of greater than 1% on the growth metric. If the amount does not exceed this threshold, a disclosure will be made that the impact of the currency change was not significant.

Management believes that adjusting its operating expenses, operating income, interest expense, other (income) expense, net, net earnings and diluted earnings per share to remove these Certain Items and presenting its International Foodservice Operations results on a constant currency basis, provides an important perspective with respect to our underlying business trends and results and provides meaningful supplemental information to both management and investors that (1) is indicative of the performance of the companys underlying operations and (2) facilitates comparisons on a year-over-year basis.

Although Sysco has a history of growth through acquisitions, the Brakes Group was significantly larger than the companies historically acquired by Sysco, with a proportionately greater impact on Syscos consolidated financial statements. Accordingly, Sysco is excluding from its non-GAAP financial measures for the relevant period the impact of acquisition-related intangible amortization specific to the Brakes Acquisition. We believe this approach significantly enhances the comparability of Syscos results for fiscal 2021 and fiscal 2020.

Set forth below is a reconciliation of sales, operating expenses, operating income, interest expense, other (income) expense net earnings and diluted earnings per share to adjusted results for these measures for the periods presented. Individual components of diluted earnings per share may not add up to the total presented due to rounding. Adjusteddiluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding.

Sysco Corporation and its Consolidated SubsidiariesNon-GAAP Reconciliation (Unaudited)Impact of Certain Items(Dollars in Thousands, Except for Share and Per Share Data)

14-Week 13-Week Change in Period Ended Period Ended Dollars % Change Jul. 3, 2021 Jun. 27, 2020Sales (GAAP) $ 16,136,893 $ 8,866,564 $ 7,270,329 82.0 %Impact of currency (253,081 ) ? (253,081 ) (2.9 ) fluctuations ^(1)Comparable salesusing a constant $ 15,883,812 $ 8,866,564 $ 7,017,248 79.1 %currency basis(Non-GAAP) Gross profit (GAAP) $ 2,915,778 $ 1,565,655 $ 1,350,123 86.2 %Impact of currency (49,675 ) ? (49,675 ) (3.2 ) fluctuations ^(1)Comparable grossprofit using a $ 2,866,103 $ 1,565,655 $ 1,300,448 83.1 %constant currencybasis (Non-GAAP) Gross margin (GAAP) 18.07 % 17.66 % 41 bpsImpact of currency (0.02 ) ? -2 bpsfluctuations ^(1)Comparable Grossmargin using a 18.04 % 17.66 % 39 bpsconstant currencybasis (Non-GAAP) Operating expenses $ 2,346,094 $ 2,097,235 $ 248,859 11.9 %(GAAP)Impact ofrestructuring and (33,110 ) (180,066 ) 146,956 81.6 transformationalproject costs^ (2)Impact ofacquisition-related (24,826 ) (13,251 ) (11,575 ) (87.4 ) costs^ (3)Impact of bad debtreserve adjustments 22,441 (169,903 ) 192,344 113.2 ^ (4)Impact of goodwill ? (134,481 ) 134,481 NMimpairmentOperating expensesadjusted for 2,310,599 1,599,534 711,065 44.5 Certain Items(Non-GAAP)Impact of currency (47,200 ) ? (47,200 ) (3.0 ) fluctuations ^(1)Comparableoperating expensesadjusted for $ 2,263,399 $ 1,599,534 $ 663,865 41.5 %Certain Items usinga constant currencybasis (Non-GAAP) Operating income $ 569,684 $ (531,580 ) $ 1,101,264 207.2 %(loss) (GAAP)Impact ofrestructuring and 33,110 180,066 (146,956 ) (81.6 ) transformationalproject costs ^(2)Impact ofacquisition-related 24,826 13,251 11,575 87.4 costs^ (3)Impact of bad debtreserve adjustments (22,441 ) 169,903 (192,344 ) (113.2 ) ^ (4)Impact of goodwill ? 134,481 (134,481 ) NMimpairmentOperating income(loss) adjusted for 605,179 (33,879 ) 639,058 NMCertain Items(Non-GAAP)Impact of currency (2,475 ) ? (2,475 ) (7.3 ) fluctuations ^(1)Comparableoperating income(loss) adjusted for $ 602,704 $ (33,879 ) $ 636,583 NMCertain Items usinga constant currencybasis (Non-GAAP) Interest expense $ 441,149 $ 164,269 $ 276,880 168.6 %(GAAP)Impact of loss onextinguishment of (293,897 ) ? (293,897 ) NMdebtInterest expenseadjusted for $ 147,252 $ 164,269 $ (17,017 ) (10.4 ) %Certain Items(Non-GAAP) Other (income) $ (13,483 ) $ 40,396 $ (53,879 ) 133.4 %expense (GAAP)Impact of othernon-routine gains 12,374 (46,968 ) 59,342 126.3 and losses ^(5)Other incomeadjusted for $ (1,109 ) $ (6,572 ) $ 5,463 (83.1 ) %Certain Items(Non-GAAP) Net earnings (loss) $ 151,093 $ (618,419 ) $ 769,512 124.4 %(GAAP)Impact ofrestructuring and 33,110 180,066 (146,956 ) (81.6 ) transformationalproject costs ^(2)Impact ofacquisition-related 24,826 13,251 11,575 87.4 costs^ (3)Impact of bad debtreserve adjustments (22,441 ) 169,903 (192,344 ) (113.2 ) ^ (4)Impact of goodwill ? 134,481 (134,481 ) NMimpairmentImpact of loss onextinguishment of 293,897 ? 293,897 NMdebtImpact of othernon-routine gains (12,374 ) 46,968 (59,342 ) (126.3 ) and losses ^(5)Tax impact ofrestructuring and (5,530 ) (32,926 ) 27,396 83.2 transformationalproject costs^ (6)Tax impact ofacquisition-related (4,204 ) 1,943 (6,147 ) NMcosts ^(6)Tax impact of baddebt reserves 347 (30,454 ) 30,801 101.1 adjustments ^(6)Tax impact of losson extinguishment (79,323 ) ? (79,323 ) NMof debt ^(6)Tax impact of othernon-routine gains 4,557 (12,644 ) 17,201 136.0 and losses ^(6)Impact of foreigntax rate change ^ (17,649 ) ? (17,649 ) NM(7)Net earnings (loss)adjusted for $ 366,309 $ (147,831 ) $ 514,140 NMCertain Items(Non-GAAP) Diluted earnings(loss) per share $ 0.29 $ (1.22 ) $ 1.51 123.8 %(GAAP)Impact ofrestructuring and 0.06 0.35 (0.29 ) (82.9 ) transformationalproject costs^ (2)Impact ofacquisition-related 0.05 0.03 0.02 66.7 costs^ (3)Impact of bad debtreserve adjustments (0.04 ) 0.33 (0.37 ) (112.1 ) ^ (4)Impact of goodwill ? 0.26 (0.26 ) NMimpairmentImpact of loss onextinguishment of 0.57 ? 0.57 NMdebtImpact of othernon-routine gains (0.02 ) 0.09 (0.11 ) (122.2 ) and losses ^(5)Tax impact ofrestructuring and (0.01 ) (0.06 ) 0.05 83.3 transformationalproject costs ^(6)Tax impact ofacquisition-related (0.01 ) ? (0.01 ) NMcosts ^(6)Tax impact of baddebt reserves ? (0.06 ) 0.06 NMadjustments ^(6)Tax impact of losson extinguishment (0.15 ) ? (0.15 ) NMof debt ^(6)Tax impact ofnon-routine gains 0.01 (0.02 ) 0.03 150.0 and losses ^(6)Impact of foreigntax rate change ^ (0.03 ) ? (0.03 ) NM(7)Diluted earnings(loss) per shareadjusted for $ 0.71 $ (0.29 ) $ 1.00 NMCertain Items(Non-GAAP) ^(8) Diluted shares 516,036,842 508,296,452 outstanding

^ Represents a constant currency adjustment, which eliminates the impact of(1) foreign currency fluctuations on current year results. Fiscal 2021 includes $17 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy and $16 million related to restructuring charges,^ facility closure and severance charges. Fiscal 2020 includes $165 million(2) related to restructuring, facility closure and severance charges of which $75 million relates to severance charges, and $15 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. Fiscal 2021 represents $19 million of intangible amortization expense from the Brakes Acquisition, which is included in the results of International^ Foodservice, as well as $6 million of due diligence and integration costs(3) related to Greco and Sons, which are included within Corporate expenses. Fiscal 2020 represents intangible amortization expense from the Brakes Acquisition. Fiscal 2021 represents the reduction of bad debt charges previously taken^ on pre-pandemic trade receivable balances in fiscal 2020. Fiscal 2020(4) represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic.^ Fiscal 2021 includes $9 million of gains on sale of property and other(5) non-recurring items. Fiscal 2020 represents the impairment of assets held for sale.^ The tax impact of adjustments for Certain Items is calculated by(6) multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred.^ Fiscal 2021 represents a net benefit from remeasuring Sysco?s accrued(7) income taxes, deferred tax asset and deferred tax liabilities due to changes in tax rates in the United Kingdom. Individual components of diluted earnings per share may not add up to the^ total presented due to rounding. Total diluted earnings per share is(8) calculated using adjusted net earnings divided by diluted shares outstanding. NM represents that the percentage change is not meaningful.

Sysco Corporation and its Consolidated SubsidiariesNon-GAAP Reconciliation (Unaudited)Impact of Certain Items(Dollars in Thousands, Except for Share and Per Share Data)

53-Week 52-Week Change in Period Ended Period Ended Dollars % Change Jul. 3, 2021 Jun. 27, 2020Sales (GAAP) $ 51,297,843 $ 52,893,310 $ (1,595,467 ) (3.0 ) %Impact of currency (454,004 ) ? (454,004 ) (0.9 ) fluctuations ^(1)Comparable salesusing a constant $ 50,843,839 $ 52,893,310 $ (2,049,471 ) (3.9 ) %currency basis(Non-GAAP) Gross profit (GAAP) $ 9,356,749 $ 9,901,664 $ (544,915 ) (5.5 ) %Impact of currency (94,664 ) ? (94,664 ) (1.0 ) fluctuations ^(1)Comparable grossprofit using a $ 9,262,085 $ 9,901,664 $ (639,579 ) (6.5 ) %constant currencybasis (Non-GAAP) Gross margin (GAAP) 18.24 % 18.72 % -48 bpsImpact of currency (0.03 ) ? -3 bpsfluctuations ^(1)Comparable Grossmargin using a 18.22 % 18.72 % -50 bpsconstant currencybasis (Non-GAAP) Operating expenses $ 7,919,507 $ 9,152,159 $ (1,232,652 ) (13.5 ) %(GAAP)Impact ofrestructuring and (128,187 ) (371,088 ) 242,901 65.5 transformationalproject costs^ (2)Impact ofacquisition-related (79,540 ) (64,793 ) (14,747 ) (22.8 ) costs^ (3)Impact of bad debtreserve adjustments 184,813 (323,403 ) 508,216 157.1 ^ (4)Impact of goodwill ? (203,206 ) 203,206 NMimpairmentOperating expensesadjusted for 7,896,593 8,189,669 (293,076 ) (3.6 ) Certain Items(Non-GAAP)Impact of currency (104,438 ) ? (104,438 ) (1.3 ) fluctuations ^(1)Comparableoperating expensesadjusted for $ 7,792,155 $ 8,189,669 $ (397,514 ) (4.9 ) %Certain Items usinga constant currencybasis (Non-GAAP) Operating income $ 1,437,242 $ 749,505 $ 687,737 91.8 %(GAAP)Impact ofrestructuring and 128,187 371,088 (242,901 ) (65.5 ) transformationalproject costs ^(2)Impact ofacquisition-related 79,540 64,793 14,747 22.8 costs^ (3)Impact of bad debtreserve adjustments (184,813 ) 323,403 (508,216 ) (157.1 ) ^ (4)Impact of goodwill ? 203,206 (203,206 ) NMimpairmentOperating incomeadjusted for 1,460,156 1,711,995 (251,839 ) (14.7 ) Certain Items(Non-GAAP)Impact of currency 9,774 ? 9,774 (0.6 ) fluctuations ^(1)Comparableoperating incomeadjusted for $ 1,469,930 $ 1,711,995 $ (242,065 ) (14.1 ) %Certain Items usinga constant currencybasis (Non-GAAP) Interest expense $ 880,137 $ 408,220 $ 471,917 115.6 %(GAAP)Impact of loss onextinguishment of (293,897 ) ? (293,897 ) NMdebtInterest expenseadjusted for $ 586,240 $ 408,220 $ 178,020 43.6 %Certain Items(Non-GAAP) Other (income) $ (27,623 ) $ 47,901 $ (75,524 ) 157.7 %expense (GAAP)Impact of othernon-routine gains (10,460 ) (46,968 ) 36,508 (77.7 ) and losses ^(5)Other (income)expense adjusted $ (38,083 ) $ 933 $ (39,016 ) NMfor Certain Items(Non-GAAP) Net earnings (GAAP) $ 524,209 $ 215,475 $ 308,734 143.3 %Impact ofrestructuring and 128,187 371,088 (242,901 ) (65.5 ) transformationalproject costs ^(2)Impact ofacquisition-related 79,540 64,793 14,747 22.8 costs^ (3)Impact of bad debtreserve adjustments (184,813 ) 323,403 (508,216 ) (157.1 ) ^ (4)Impact of goodwill ? 203,206 (203,206 ) NMimpairmentImpact of loss onextinguishment of 293,897 ? 293,897 NMdebtImpact of othernon-routine gains 10,460 46,968 (36,508 ) (77.7 ) and losses ^(5)Tax impact ofrestructuring and (32,416 ) (90,683 ) 58,267 64.3 transformationalproject costs^ (6)Tax impact ofacquisition-related (19,675 ) (13,641 ) (6,034 ) (44.2 ) costs ^(6)Tax impact of baddebt reserves 46,260 (76,864 ) 123,124 160.2 adjustments ^(6)Tax impact of losson extinguishment (79,323 ) ? (79,323 ) NMof debt ^(6)Tax impact of othernon-routine gains (2,692 ) (12,644 ) 9,952 78.7 and losses ^(6)Impact of foreigntax rate change ^ (23,197 ) 924 (24,121 ) NM(7)Net earningsadjusted for $ 740,437 $ 1,032,025 $ (291,588 ) (28.3 ) %Certain Items(Non-GAAP) Diluted earnings $ 1.02 $ 0.42 $ 0.60 142.9 %per share (GAAP)Impact ofrestructuring and 0.25 0.72 (0.47 ) (65.3 ) transformationalproject costs^ (2)Impact ofacquisition-related 0.15 0.13 0.02 15.4 costs^ (3)Impact of bad debtreserve adjustments (0.36 ) 0.63 (0.99 ) (157.1 ) ^ (4)Impact of goodwill ? 0.40 (0.40 ) NMimpairmentImpact of loss onextinguishment of 0.57 ? 0.57 NMdebtImpact of othernon-routine gains 0.02 0.09 (0.07 ) (77.8 ) and losses ^(5)Tax impact ofrestructuring and (0.06 ) (0.18 ) 0.12 66.7 transformationalproject costs ^(6)Tax impact ofacquisition-related (0.04 ) (0.03 ) (0.01 ) (33.3 ) costs ^(6)Tax impact of baddebt reserves 0.09 (0.15 ) 0.24 160.0 adjustments ^(6)Tax impact of losson extinguishment (0.15 ) ? (0.15 ) ? of debt ^(6)Tax impact ofnon-routine gains (0.01 ) (0.02 ) 0.01 50.0 and losses ^(6)Impact of foreigntax rate change ^ (0.05 ) ? (0.05 ) NM(7)Diluted earningsper share adjusted $ 1.44 $ 2.01 $ (0.57 ) (28.4 ) %for Certain Items(Non-GAAP) ^(8) Diluted shares 513,555,088 514,025,974 outstanding

^ Represents a constant currency adjustment, which eliminates the impact of(1) foreign currency fluctuations on current year results. Fiscal 2021 includes $72 million related to restructuring charges, facility closure and severance charges and $56 million related to various^ transformation initiative costs, primarily consisting of changes to our(2) business technology strategy. Fiscal 2020 includes $265 million related to restructuring, facility closure and severance charges and $106 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. Fiscal 2021 represents $74 million of intangible amortization expense from the Brakes Acquisition, which is included in the results of^ International Foodservice, as well as $6 million of due diligence and(3) integration costs related to Greco and Sons, which are included within Corporate expenses. Fiscal 2020 represents intangible amortization expense from the Brakes Acquisition. Fiscal 2021 represents the reduction of bad debt charges previously taken^ on pre-pandemic trade receivable balances in fiscal 2020. Fiscal 2020(4) represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic.^ Fiscal 2021 includes $23 million of loss from the sale of businesses, $9(5) million of gains on sale of property and other non-recurring gains and losses. Fiscal 2020 represents the impairment of assets held for sale.^ The tax impact of adjustments for Certain Items is calculated by(6) multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred.^ Fiscal 2021 represents a net benefit from remeasuring Sysco?s accrued(7) income taxes, deferred tax asset and deferred tax liabilities due to changes in tax rates in the United Kingdom. Individual components of diluted earnings per share may not add up to the^ total presented due to rounding. Total diluted earnings per share is(8) calculated using adjusted net earnings divided by diluted shares outstanding. NM represents that the percentage change is not meaningful.

Sysco Corporation and its Consolidated SubsidiariesSegment ResultsNon-GAAP Reconciliation (Unaudited)Impact of Certain Items on Applicable Segments(Dollars in Thousands)

14-Week 13-Week Change in %/bps Period Ended Period Ended Dollars Change Jul. 3, 2021 Jun. 27, 2020U.S. FOODSERVICE OPERATIONSSales (GAAP) $ 11,518,926 $ 6,114,931 $ 5,403,995 88.4 %Gross Profit (GAAP) 2,214,821 1,165,551 1,049,270 90.0 %Gross Margin (GAAP) 19.23 % 19.06 % 17 bps Operating expenses $ 1,377,419 $ 1,124,986 $ 252,433 22.4 %(GAAP)Impact ofrestructuring and (46 ) (938 ) 892 95.1 transformationalproject costsImpact of bad debtreserve adjustments 19,811 (123,424 ) 143,235 116.1 ^ (1)Operating expensesadjusted for $ 1,397,184 $ 1,000,624 $ 396,560 39.6 %Certain Items(Non-GAAP) Operating income $ 837,402 $ 40,565 $ 796,837 NM(GAAP)Impact ofrestructuring and 46 938 (892 ) (95.1 ) transformationalproject costsImpact of bad debtreserve adjustments (19,811 ) 123,424 (143,235 ) (116.1 ) ^(1)Operating incomeadjusted for $ 817,637 $ 164,927 $ 652,710 NMCertain Items(Non-GAAP) INTERNATIONALFOODSERVICE OPERATIONSSales (GAAP) $ 2,496,030 $ 1,361,109 $ 1,134,921 83.4 %Impact of currency (247,000 ) ? (247,000 ) (18.1 ) fluctuations^ (2)Comparable salesusing a constant $ 2,249,030 $ 1,361,109 $ 887,921 65.2 %currency basis(Non-GAAP) Gross Profit (GAAP) $ 496,010 $ 263,037 $ 232,973 88.6 %Impact of currency (47,813 ) ? (47,813 ) (18.2 ) fluctuations^ (2)Comparable grossprofit using a $ 448,197 $ 263,037 $ 185,160 70.4 %constant currencybasis (Non-GAAP) Gross Margin (GAAP) 19.87 % 19.33 % 54 bpsImpact of currency (0.06 ) ? -6 bpsfluctuations^ (2)Comparable grossmargin using a 19.93 % 19.33 % 60 bpsconstant currencybasis (Non-GAAP) Operating expenses $ 526,440 $ 640,339 $ (113,899 ) (17.8 ) %(GAAP)Impact ofrestructuring and (14,115 ) (117,597 ) 103,482 88.0 transformationalproject costs^ (3)Impact ofacquisition-related (18,959 ) (13,251 ) (5,708 ) (43.1 ) costs ^(4)Impact of bad debtreserve adjustments 2,631 (42,002 ) 44,633 106.3 ^(1)Impact of goodwill ? (134,481 ) 134,481 NMimpairmentOperating expensesadjusted for 495,997 333,008 162,989 48.9 Certain Items(Non-GAAP)Impact of currency (44,683 ) ? (44,683 ) (13.4 ) fluctuations^ (2)Comparableoperating expensesadjusted for $ 451,314 $ 333,008 $ 118,306 35.5 %Certain Items usinga constant currencybasis (Non-GAAP) Operating loss $ (30,430 ) $ (377,302 ) $ 346,872 91.9 %(GAAP)Impact ofrestructuring and 14,115 117,597 (103,482 ) (88.0 ) transformationalproject costs ^(3)Impact ofacquisition-related 18,959 13,251 5,708 43.1 costs^ (4)Impact of bad debtreserve adjustments (2,631 ) 42,002 (44,633 ) (106.3 ) ^(1)Impact of goodwill ? 134,481 (134,481 ) NMimpairmentOperating income(loss) adjusted for 13 (69,971 ) 69,984 100.0 Certain Items(Non-GAAP)Impact of currency (3,131 ) ? (3,131 ) (4.5 ) fluctuations^ (2)Comparableoperating lossadjusted for $ (3,118 ) $ (69,971 ) $ 66,853 95.5 %Certain Items usinga constant currencybasis (Non-GAAP) SYGMA Sales (GAAP) $ 1,873,357 $ 1,288,928 $ 584,429 45.3 %Gross Profit (GAAP) 159,696 114,446 45,250 39.5 %Gross Margin (GAAP) 8.52 % 8.88 % -35 bps Operating expenses $ 142,999 $ 105,298 $ 37,701 35.8 %(GAAP)Impact ofrestructuring and ? (2,131 ) 2,131 NMtransformationalproject costsOperating expensesadjusted for $ 142,999 $ 103,167 $ 39,832 38.6 %Certain Items(Non-GAAP) Operating income $ 16,697 $ 9,148 $ 7,549 82.5 %(GAAP)Impact ofrestructuring and ? 2,131 (2,131 ) NMtransformationalproject costsOperating incomeadjusted for $ 16,697 $ 11,279 $ 5,418 48.0 %Certain Items(Non-GAAP) OTHER Sales (GAAP) $ 248,580 $ 101,596 $ 146,984 144.7 %Gross Profit (GAAP) 46,286 24,636 21,650 87.9 %Gross Margin (GAAP) 18.62 % 24.25 % -563 bps Operating expenses $ 51,543 $ 46,483 $ 5,060 10.9 %(GAAP)Impact ofrestructuring and (956 ) ? (956 ) NMtransformationalproject costsImpact of bad debtreserve adjustments (1 ) (4,477 ) 4,476 100.0 ^ (1)Operating expensesadjusted for $ 50,586 $ 42,006 $ 8,580 20.4 %Certain Items(Non-GAAP) Operating loss $ (5,257 ) $ (21,847 ) $ 16,590 75.9 %(GAAP)Impact ofrestructuring and 956 ? 956 NMtransformationalproject costsImpact of bad debtreserve adjustments 1 4,477 (4,476 ) (100.0 ) ^ (1)Operating lossadjusted for $ (4,300 ) $ (17,370 ) $ 13,070 75.2 %Certain Items(Non-GAAP) CORPORATE Gross Profit (GAAP) $ (1,035 ) $ (2,015 ) $ 980 48.6 % Operating expenses $ 247,693 $ 180,129 $ 67,564 37.5 %(GAAP)Impact ofrestructuring and (17,993 ) (59,400 ) 41,407 69.7 transformationalproject costs^ (5)Impact ofacquisition-related (5,867 ) ? (5,867 ) NMcosts ^(6)Operating expensesadjusted for $ 223,833 $ 120,729 $ 103,104 85.4 %Certain Items(Non-GAAP) Operating loss $ (248,728 ) $ (182,144 ) $ (66,584 ) (36.6 ) %(GAAP)Impact ofrestructuring and 17,993 59,400 (41,407 ) (69.7 ) transformationalproject costs ^(5)Impact ofacquisition-related 5,867 ? 5,867 NMcosts ^(6)Operating lossadjusted for $ (224,868 ) $ (122,744 ) $ (102,124 ) (83.2 ) %Certain Items(Non-GAAP) TOTAL SYSCO Sales (GAAP) $ 16,136,893 $ 8,866,564 $ 7,270,329 82.0 %Gross Profit (GAAP) 2,915,778 1,565,655 1,350,123 86.2 %Gross Margin (GAAP) 18.07 % 17.66 % 41 bps Operating expenses $ 2,346,094 $ 2,097,235 $ 248,859 11.9 %(GAAP)Impact ofrestructuring andtransformational (33,110 ) (180,066 ) 146,956 81.6 project costs ^(3)(5)Impact ofacquisition-related (24,826 ) (13,251 ) (11,575 ) (87.4 ) costs ^(4) (6)Impact of bad debtreserve adjustments 22,441 (169,903 ) 192,344 113.2 ^(1)Impact of goodwill ? (134,481 ) 134,481 NMimpairmentOperating expensesadjusted for $ 2,310,599 $ 1,599,534 $ 711,065 44.5 %Certain Items(Non-GAAP) Operating income $ 569,684 $ (531,580 ) $ 1,101,264 207.2 %(loss) (GAAP)Impact ofrestructuring andtransformational 33,110 180,066 (146,956 ) (81.6 ) project costs ^(3)(5)Impact ofacquisition-related 24,826 13,251 11,575 87.4 costs ^(4) (6)Impact of bad debtreserve adjustments (22,441 ) 169,903 (192,344 ) (113.2 ) ^(1)Impact of goodwill ? 134,481 (134,481 ) NMimpairmentOperating income(loss) adjusted for $ 605,179 $ (33,879 ) $ 639,058 NMCertain Items(Non-GAAP)

Fiscal 2021 represents the reduction of bad debt charges previously taken^ on pre-pandemic trade receivable balances in fiscal 2020. Fiscal 2020(1) represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic.^ Represents a constant currency adjustment, which eliminates the impact of(2) foreign currency fluctuations on current year results.^ Includes restructuring, severance and facility closure costs primarily in(3) Europe.^ Represents intangible amortization expense from the Brakes Acquisition.(4)^ Includes various transformation initiative costs, primarily consisting of(5) changes to our business technology strategy.^ Represents due diligence and integration costs related to Greco and Sons,(6) which are included within Corporate expenses. NM represents that the percentage change is not meaningful.

Sysco Corporation and its Consolidated SubsidiariesSegment ResultsNon-GAAP Reconciliation (Unaudited)Impact of Certain Items on Applicable Segments(Dollars in Thousands)

53-Week 52-Week Change in %/bps Period Ended Period Ended Dollars Change Jul. 3, 2021 Jun. 27, 2020U.S. FOODSERVICE OPERATIONSSales (GAAP) $ 35,724,843 $ 36,774,146 $ (1,049,303 ) (2.9 ) %Gross Profit (GAAP) 7,008,687 7,254,722 (246,035 ) (3.4 ) %Gross Margin (GAAP) 19.62 % 19.73 % -11 bps Operating expenses $ 4,552,123 $ 5,251,563 $ (699,440 ) (13.3 ) %(GAAP)Impact ofrestructuring and (4,056 ) (10,145 ) 6,089 60.0 transformationalproject costsImpact of bad debtreserve adjustments 143,036 (230,654 ) 373,690 162.0 ^ (1)Operating expensesadjusted for $ 4,691,103 $ 5,010,764 $ (319,661 ) (6.4 ) %Certain Items(Non-GAAP) Operating income $ 2,456,564 $ 2,003,159 $ 453,405 22.6 %(GAAP)Impact ofrestructuring and 4,056 10,145 (6,089 ) (60.0 ) transformationalproject costsImpact of bad debtreserve adjustments (143,036 ) 230,654 (373,690 ) (162.0 ) ^(1)Operating incomeadjusted for $ 2,317,584 $ 2,243,958 $ 73,626 3.3 %Certain Items(Non-GAAP) INTERNATIONALFOODSERVICE OPERATIONSSales (GAAP) $ 8,350,638 $ 9,672,190 $ (1,321,552 ) (13.7 ) %Impact of currency (444,380 ) ? (444,380 ) (4.6 ) fluctuations^ (2)Comparable salesusing a constant $ 7,906,258 $ 9,672,190 $ (1,765,932 ) (18.3 ) %currency basis(Non-GAAP) Gross Profit (GAAP) $ 1,645,448 $ 1,955,190 $ (309,742 ) (15.8 ) %Impact of currency (91,444 ) ? (91,444 ) (4.7 ) fluctuations^ (2)Comparable grossprofit using a $ 1,554,004 $ 1,955,190 $ (401,186 ) (20.5 ) %constant currencybasis (Non-GAAP) Gross Margin (GAAP) 19.70 % 20.21 % -51 bpsImpact of currency 0.05 ? -5 bpsfluctuations^ (2)Comparable grossmargin using a 19.66 % 20.21 % -56 bpsconstant currencybasis (Non-GAAP) Operating expenses $ 1,877,851 $ 2,326,597 $ (448,746 ) (19.3 ) %(GAAP)Impact ofrestructuring and (66,147 ) (191,900 ) 125,753 65.5 transformationalproject costs^ (3)Impact ofacquisition-related (73,673 ) (64,793 ) (8,880 ) (13.7 ) costs ^(4)Impact of bad debtreserve adjustments 36,214 (88,271 ) 124,485 141.0 ^(1)Impact of goodwill ? (134,481 ) ' 134,481 NMimpairmentOperating expensesadjusted for 1,774,245 1,847,152 (72,907 ) (3.9 ) Certain Items(Non-GAAP)Impact of currency (100,945 ) ? (100,945 ) (5.5 ) fluctuations^ (2)Comparableoperating expensesadjusted for $ 1,673,300 $ 1,847,152 $ (173,852 ) (9.4 ) %Certain Items usinga constant currencybasis (Non-GAAP) Operating loss $ (232,403 ) $ (371,407 ) $ 139,004 37.4 %(GAAP)Impact ofrestructuring and 66,147 191,900 (125,753 ) (65.5 ) transformationalproject costs ^(3)Impact ofacquisition-related 73,673 64,793 8,880 13.7 costs^ (4)Impact of bad debtreserve adjustments (36,214 ) 88,271 (124,485 ) (141.0 ) ^(1)Impact of goodwill ? 134,481 (134,481 ) NMimpairmentOperating (loss)income adjusted for (128,797 ) 108,038 (236,835 ) (219.2 ) Certain Items(Non-GAAP)Impact of currency 9,501 ? 9,501 (8.8 ) fluctuations^ (2)Comparableoperating (loss)income adjusted for $ (119,296 ) $ 108,038 $ (227,334 ) (210.4 ) %Certain Items usinga constant currencybasis (Non-GAAP) SYGMA Sales (GAAP) $ 6,498,601 $ 5,555,926 $ 942,675 17.0 %Gross Profit (GAAP) 554,014 483,494 70,520 14.6 %Gross Margin (GAAP) 8.53 % 8.70 % -18 bps Operating expenses $ 501,360 $ 446,614 $ 54,746 12.3 %(GAAP)Impact ofrestructuring and (7 ) (5,793 ) 5,786 99.9 transformationalproject costsOperating expensesadjusted for $ 501,353 $ 440,821 $ 60,532 13.7 %Certain Items(Non-GAAP) Operating income $ 52,654 $ 36,880 $ 15,774 42.8 %(GAAP)Impact ofrestructuring and 7 5,793 (5,786 ) (99.9 ) transformationalproject costsOperating incomeadjusted for $ 52,661 $ 42,673 $ 9,988 23.4 %Certain Items(Non-GAAP) OTHER Sales (GAAP) $ 723,761 $ 891,048 $ (167,287 ) (18.8 ) %Gross Profit (GAAP) 160,394 218,884 (58,490 ) (26.7 ) %Gross Margin (GAAP) 22.16 % 24.56 % -240 bps Operating expenses $ 160,790 $ 240,245 $ (79,455 ) (33.1 ) %(GAAP)Impact ofrestructuring and (956 ) ? (956 ) NMtransformationalproject costsImpact of bad debtreserve adjustments 5,563 (4,478 ) 10,041 224.2 ^ (1)Impact of goodwill ? (11,660 ) 11,660 NMimpairmentOperating expensesadjusted for $ 165,397 $ 224,107 $ (58,710 ) (26.2 ) %Certain Items(Non-GAAP) Operating loss $ (396 ) $ (21,361 ) $ 20,965 98.1 %(GAAP)Impact ofrestructuring and 956 ? 956 NMtransformationalproject costsImpact of bad debtreserve adjustments (5,563 ) 4,478 (10,041 ) (224.2 ) ^ (1)Impact of goodwill ? 11,660 (11,660 ) NMimpairmentOperating lossadjusted for $ (5,003 ) $ (5,223 ) $ 220 4.2 %Certain Items(Non-GAAP) CORPORATE Gross Profit (GAAP) $ (11,794 ) $ (10,626 ) $ (1,168 ) (11.0 ) % Operating expenses $ 827,383 $ 887,140 $ (59,757 ) (6.7 ) %(GAAP)Impact ofrestructuring and (57,021 ) (163,249 ) 106,228 65.1 transformationalproject costs^ (5)Impact ofacquisition-related (5,867 ) ? (5,867 ) NMcosts ^(6)Impact of goodwill ? (57,066 ) 57,066 NMimpairmentOperating expensesadjusted for $ 764,495 $ 666,825 $ 97,670 14.6 %Certain Items(Non-GAAP) Operating loss $ (839,177 ) $ (897,766 ) $ 58,589 6.5 %(GAAP)Impact ofrestructuring and 57,021 163,249 (106,228 ) (65.1 ) transformationalproject costs ^(5)Impact ofacquisition-related 5,867 ? 5,867 NMcosts ^(6)Impact of goodwill ? 57,066 (57,066 ) NMimpairmentOperating lossadjusted for $ (776,289 ) $ (677,451 ) $ (98,838 ) (14.6 ) %Certain Items(Non-GAAP) TOTAL SYSCO Sales (GAAP) $ 51,297,843 $ 52,893,310 $ (1,595,467 ) (3.0 ) %Gross Profit (GAAP) 9,356,749 9,901,664 (544,915 ) (5.5 ) %Gross Margin (GAAP) 18.24 % 18.72 % -48 bps Operating expenses $ 7,919,507 $ 9,152,159 $ (1,232,652 ) (13.5 ) %(GAAP)Impact ofrestructuring andtransformational (128,187 ) (371,087 ) 242,900 65.5 project costs ^(3)(5)Impact ofacquisition-related (79,540 ) (64,793 ) (14,747 ) (22.8 ) costs ^(4) (6)Impact of bad debtreserve adjustments 184,813 (323,403 ) 508,216 157.1 ^(1)Impact of goodwill ? (203,207 ) 203,207 NMimpairmentOperating expensesadjusted for $ 7,896,593 $ 8,189,669 $ (293,076 ) (3.6 ) %Certain Items(Non-GAAP) Operating income $ 1,437,242 $ 749,505 $ 687,737 91.8 %(GAAP)Impact ofrestructuring andtransformational 128,187 371,087 (242,900 ) (65.5 ) project costs ^(3)(5)Impact ofacquisition-related 79,540 64,793 14,747 22.8 costs ^(4) (6)Impact of bad debtreserve adjustments (184,813 ) 323,403 (508,216 ) (157.1 ) ^(1)Impact of goodwill ? 203,207 (203,207 ) NMimpairmentOperating incomeadjusted for $ 1,460,156 $ 1,711,995 $ (251,839 ) (14.7 ) %Certain Items(Non-GAAP)

Fiscal 2021 represents the reduction of bad debt charges previously^ taken on pre-pandemic trade receivable balances in fiscal 2020. Fiscal(1) 2020 represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic.^ Represents a constant currency adjustment, which eliminates the impact(2) of foreign currency fluctuations on current year results.^ Includes restructuring, severance and facility closure costs primarily(3) in Europe.^ Represents intangible amortization expense from the Brakes Acquisition.(4)^ Includes various transformation initiative costs, primarily consisting(5) of changes to our business technology strategy.^ Fiscal 2021 represents due diligence and integration costs related to(6) the acquisition of Greco and Sons in the first quarter of fiscal 2022. NM represents that the percentage change is not meaningful.

Sysco Corporation and its Consolidated SubsidiariesNon-GAAP Reconciliation (Unaudited)Free Cash Flow(In Thousands)

Free cash flow represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. Sysco considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases and sales of buildings, fleet, equipment and technology, which may potentially be used to pay for, among other things, strategic uses of cash including dividend payments, share repurchases and acquisitions. However, free cash flow may not be available for discretionary expenditures, as it may be necessary that we use it to make mandatory debt service or other payments. Free cash flow should not be used as a substitute for the most comparable GAAP measure in assessing the companys liquidity for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. In the table that follows, free cash flow for each period presented is reconciled to net cash provided by operating activities.

53-Week 52-Week 53-Week Period Ended Period Ended Period Jul. 3, 2021 Jun. 27, 2020 Change in DollarsNet cash provided byoperating activities $ 1,903,842 $ 1,618,680 $ 285,162 (GAAP)Additions to plant and (470,676 ) (720,423 ) 249,747 equipmentProceeds from sales of 59,147 28,717 30,430 plant and equipmentFree Cash Flow $ 1,492,313 $ 926,974 $ 565,339 (Non-GAAP)

Sysco Corporation and its Consolidated SubsidiariesNon-GAAP Reconciliation (Unaudited)Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(Dollars in Thousands)

EBITDA represents net earnings (loss) plus (i) interest expense, (ii) income tax expense and benefit, (iii) depreciation and (iv) amortization. The net earnings (loss) component of our EBITDA calculation is impacted by Certain Items that we do not consider representative of our underlying performance. As a result, in the non-GAAP reconciliations below for each period presented, adjusted EBITDA is computed as EBITDA plus the impact of Certain Items, excluding Certain items related to interest expense, income taxes, depreciation and amortization. Sysco's management considers growth in this metric to be a measure of overall financial performance that provides useful information to management and investors about the profitability of the business, as it facilitates comparison of performance on a consistent basis from period to period by providing a measurement of recurring factors and trends affecting our business. Additionally, it is a commonly used component metric used to inform on capital structure decisions. Adjusted EBITDA should not be used as a substitute for the most comparable GAAP measure in assessing the companys financial performance for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. In the tables that follow, adjusted EBITDA for each period presented is reconciled to net earnings (loss).

14-Week 13-Week Change in Period Ended Period Ended Dollars % Change Jul. 3, 2021 Jun. 27, 2020Net earnings (loss) $ 151,093 $ (618,419 ) $ 769,512 (124.4 ) %(GAAP)Interest (GAAP) 441,149 164,269 276,880 168.6 Income taxes (GAAP) (9,075 ) (117,826 ) 108,751 (92.3 ) Depreciation and 195,445 247,177 (51,732 ) (20.9 ) amortization (GAAP)EBITDA (Non-GAAP) $ 778,612 $ (324,799 ) $ 1,103,411 NMCertain Item adjustments:Impact ofrestructuring and 31,440 116,218 (84,778 ) (72.9 ) %transformationalproject costs ^(1)Impact ofacquisition-related 5,867 ? 5,867 NMcostsImpact of bad debtreserve adjustments (22,441 ) 169,903 (192,344 ) (113.2 ) ^ (2)Impact of goodwill ? 134,481 (134,481 ) NMimpairmentImpact of othernon-routine gains (12,374 ) 46,968 (59,342 ) (126.3 ) and losses^ (3)EBITDA adjusted forCertain Items $ 781,104 $ 142,771 $ 638,333 NM(Non-GAAP) ^(4)

^ Includes various transformation initiative costs, primarily consisting(1) of changes to our business technology strategy, excluding charges related to accelerated depreciation. Fiscal 2021 represents the reduction of bad debt charges previously^ taken on pre-pandemic trade receivable balances in fiscal 2020. Fiscal(2) 2020 represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic.^ Fiscal 2021 includes $9million of gains on sale of property and other(3) non-recurring items. Fiscal 2020 represents the impairment of assets held for sale. In arriving at adjusted EBITDA, Sysco does not adjust out interest^ income of $2million and $5million for fiscal 2021 and fiscal 2020,(4) respectively, or non-cash stock compensation expense of $30million for fiscal 2021 and $22million of non-cash stock compensation benefit for fiscal 2020.

53-Week 52-Week Change in Period Ended Period Ended Dollars % Change Jul. 3, 2021 Jun. 27, 2020Net earnings (loss) $ 524,209 $ 215,475 $ 308,734 143.3 %(GAAP)Interest (GAAP) 880,137 408,220 471,917 115.6 Income taxes (GAAP) 60,519 77,909 (17,390 ) (22.3 ) Depreciation and 737,916 805,765 (67,849 ) (8.4 ) amortization (GAAP)EBITDA (Non-GAAP) $ 2,202,781 $ 1,507,369 $ 695,412 46.1 %Certain Item adjustments:Impact ofrestructuring and 120,693 290,284 (169,591 ) (58.4 ) %transformationalproject costs ^(1)Impact ofacquisition-related 5,867 ? 5,867 NMcostsImpact of bad debtreserve adjustments (184,813 ) 323,403 (508,216 ) (157.1 ) ^ (2)Impact of goodwill ? 203,206 (203,206 ) NMimpairmentImpact of othernon-routine gains 10,460 46,968 (36,508 ) (77.7 ) and losses^ (3)EBITDA adjusted forCertain Items $ 2,154,988 $ 2,371,230 $ (216,242 ) (9.1 ) %(Non-GAAP) ^(4)

^ Includes various transformation initiative costs, primarily consisting(1) of changes to our business technology strategy, excluding charges related to accelerated depreciation. Fiscal 2021 represents the reduction of bad debt charges previously^ taken on pre-pandemic trade receivable balances in fiscal 2020. Fiscal(2) 2020 represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic.^ Fiscal 2021 includes $23million of loss from the sale of businesses,(3) $9million of gains on sale of property and other non-recurring items. Fiscal 2020 represents the impairment of assets held for sale. In arriving at adjusted EBITDA, Sysco does not adjust out interest^ income of $15million and $12million or non-cash stock compensation(4) expense of $96million and $42million for fiscal 2021 and fiscal 2020, respectively.

For more information contact: Shannon Mutchler Neil RussellMedia Contact Investor Contactshannon.mutchler@sysco.com neil.russell@sysco.comT 281-584-4059 T 281-584-1308