Sysco 2012 Annual Report Download - page 4

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Good things
  a r, t о .
To Our Shareholders,
If we were to characterize Sysco’s
performance in scal 2012 in the
fewest possible words, then we’d say:
Providing value. Building trust.
Transforming the business. Earning
a prot. Delivering on promises.
In short, we’d say our performance
backed up our motto: “Good things
come from Sysco.”
In scal 2012, Sysco continued to
demonstrate an unyielding commit-
ment to our customers. Our more
than 47,000 associates accepted
the challenges and serviced our
customers in an admirable manner,
growing our North American market
share by approximately one percent –
in the midst of an economic recovery
that remains uneven.
Keeping a company on sound
nancial footing is foundational to
producing sustainable, protable
long-term growth. On the sales front,
we registered a record $42 billion in
revenues for the year, a 7.8 percent
increase compared to scal 2011.
That included a reported $1.9 billion
in operating income and $1.90 earn-
ings per share. We earned a 15 per-
cent return on invested capital and
provided $623 million in dividends to
you, our shareholders. And, we took
steps to position Sysco for future
growth and expansion by obtaining
$750 million in low-rate nancing and
renewing our revolving credit facility
on favorable terms.
A solid nancial performance is also
an important part of the foundation
that allows our associates to remain
focused on our vision: to be our
customers’ most valued and trusted
business partner. The emphasis that
we place on providing value creates
ongoing opportunities to earn our
customers’ trust. In turn, our custom-
ers’ loyalty offers Sysco the opportu-
nity to sustain nancial health.
A vision, however, is only as good as
the strategies and execution behind
it. The ve-point strategy that we
developed to transform Sysco’s
business through these challenging
times still holds true. In line with that
strategy, some of the good things
we accomplished in 2012 include:
• Profoundlyenrichtheexperience
of doing business with Sysco –
To benet our customers, we
continued to rene our technology
toensure our customers can take
advantage of user-friendly applica-
tions, such as Sysco Market, which
makes it easier for them to do busi-
ness with Sysco. We also launched
numerous products across various
categories – produce, meat, sea-
food, dry goods and more – includ-
ing 14 new fresh and frozen seafood
items under Sysco-branded labels
that must passthe most comprehen-
sive quality assurance standards in
the foodservice distribution industry.
• Continuouslyimproveproductivity
in all areas of the business –
In our warehouse and transporta-
tion areas, our associates contin-
ued down the path from preceding
years to develop better processes
to operate our equipment and eet,
which in the long run helps our
people to work more safely and be
more productive on the job. During
2012, we completed the installation
of Sysco Transportation System,
or STS. This new technology scans
each case as it is delivered to
customers, improving customer
service, reducing errors and
making deliveries more efcient.
• Expandourportfolioofproducts
and services by initiating a cus-
tomer-centric innovation program –
WeintroducedtheChefRefappfor
iPhones, iPads and Android phones
to provide chefs and customers
quick and easy access to recipes,
cooking tips and descriptions
“We will focus our efforts
onthree key strategic oppor-
tunities: delivering protable
sustainable growth, improving
our operating margins and
optimizing our asset manage-
ment in a manner that
enhances cash ow.”