Sysco 2009 Annual Report Download - page 4

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DOING MORE // SYSCO CORPORATION
O
To Our Shareholders
Our results for 2009 reflect Sysco’s commit-
ment to operational excellence and the
strength of our customer relationships.
During fiscal 2009, we sold $37 billion
of product, generated nearly $2 billion
of operating income, produced cash flow
from operations of $1.6 billion and returned
$1 billion of capital to our shareholders.
These results were generated through the
consistent support of our customers and
the dedicated efforts of our associates,
in the midst of the most difficult business
environment that our industry has ever
experienced. Underlying these solid
results are unwavering customer service,
increased efficiencies and continuing
investment in our future growth.
While we are hopeful that market con-
ditions will improve as we approach the
new calendar year, we believe that we are
exceptionally well positioned to build upon
our industry leadership position during
these uncertain economic conditions.
Supporting our customers and enhancing
productivity will remain our top priority
in fiscal 2010.
Our sound financial picture is reflected
in return on invested capital of 19 percent
and return on average shareholders’ equity
of 31 percent for fiscal year 2009.
Leading from Strength
Our leadership position in the food-
service industry is unquestioned. We
built this company on a foundation of
solid values and a commitment to sup-
port our customers. We have helped
shape the industry and continue to push
it forward with practices that result in
better food safety and favorable environ-
mental impact. Our leadership position
provides us with many advantages, but
also requires us to manage our business
in a very responsible manner.
Our geographic scope, product breadth
and scale of operations enables us to
deliver more to our customers in product
range and quality, efficient delivery and a
level of expertise that makes us a valuable
partner in our customers’ success.
This year, many of our customers increas-
ingly turned to us for advice on how to
manage their operating costs while still
providing fresh and appealing menus
for their dining customers. Our business
review process, an opportunity to sit
down one-on-one with customers to
discuss challenges and offer solutions,
has become ingrained in how we work
with independent restaurants. We now
conduct business reviews throughout
every local Sysco Broadline operating
company, totaling approximately
50,000 business reviews last year.
Building on Success
Our national supply chain initiative that
began in 2002 put us ahead of the industry
curve in reducing transportation costs
while providing more efficient service
to our customers. This initiative, which
reaches from our growers and suppliers to
approximately 400,000 customers served
through nearly 200 Sysco distribution
locations, continues to reduce our miles
driven, lower the energy usage for both
our warehouses and our fleet, increase
our purchasing efficiency and improve
our responsiveness to customer needs.
These strategic improvements have
improved our competitive stance. They
have also laid the groundwork to explore
ways to make the best use of available
technology in preparing for the future.
Responding to Change
The steps we have taken to refine our
supply chain have served us well in com-
bating the difficult business conditions
we have experienced during the past year.
Throughout the 80s and 90s and into this
decade, we experienced rapid growth in
the food-away-from-home market seg-
ment – our customer base. As we begin
the new fiscal year, we are encouraged by
the cautious optimism that appears to be
building regarding the economy’s prospects
for improvement in the coming months.
With that said, the likely pace and extent
of such improvement remains unclear.
We are confident that we are well posi-
tioned to continue to take share in our
$215 billion market by supporting our
customers and attracting new accounts
with our value added capabilities and
Sysco recorded sales of $36.9 billion Operating income of $1.9 billion Return on invested capital of 19 percent
$37 billion $1.9 billion 19 percent
2