Annual Report

Dear Sysco Shareholders,

Fiscal 2017 was a great year for Sysco, as we delivered excellent financial results; sales grew 10% to $55.4 billion, adjusted operating income1 grew 17% to $2.4 billion, and adjusted earnings per share1 grew 18% to $2.48.

This strong performance reflects a consistently high level of execution on our customer-centric strategy, with a “One Sysco” approach, and further positions us to deliver disciplined, profitable and sustainable growth in the future. We are especially pleased with the significant progress achieved towards our three-year plan objectives of delivering accelerated case growth with an emphasis on local customers, while growing gross profit dollars faster than overall expense growth.

Fiscal 2017 was marked by not only our strong operating performance, but also by some important highlights, which include:

• Encouraging progress toward strengthening customer relationships, as evidenced by the improvement in our customer loyalty scores;
• The addition of the Brakes business in Europe. We are excited about the long-term opportunities to create value in Europe; and
• Advances with technology, especially enhanced customer facing tools.

At Sysco, we strive to be our customers’ most valued and trusted business partner, and we are committed to delivering on our targeted financial objectives for our Sysco shareholders. We are doing so by developing new, as well as refining current strategic initiatives -- such as category management, revenue management, enhanced customerfacing technology and multiple productivity improvement measures -- all facilitating our goal of creating competitive advantage. We will continue accelerating, broadening and deepening our customer insights, while working to attract and develop highly capable and diverse associates who are critical to our future success.

Additionally, we are highly committed to furthering progress in Corporate Social Responsibility (CSR). Throughout the past year, we have taken steps to enhance our CSR efforts. These initiatives assist us with the enhancement of customer service, attraction and retention of the best talent and support for the communities where we live and work. And, while pleased with our progress and accomplishments in fiscal 2017, we recognize that there is still much to accomplish. Looking ahead to fiscal 2018, we will continue to invest in our business through ongoing enhancements to our technological capabilities, expansion of our geographic presence and further development of our associates so as to deliver value, for you, our shareholders.

In the spirit of looking forward and continuing to position our leadership team on our defined succession path, Tom Bené will become our President and CEO effective January 1, 2018. Tom is a strong, accomplished leader who has contributed greatly to Sysco and brings a wealth of relevant experience to his new role. We are very excited about Sysco’s future prospects under Tom and his capable leadership.

In addition, on behalf of the board of directors and everyone at Sysco, I would like to salute Bill DeLaney, our current CEO, for his many contributions over the span of his 30-year career of distinguished service at Sysco. Bill has been instrumental to Sysco’s success and has taken decisive actions to oversee transformative change. Under his leadership, Sysco has established itself as the global leader in selling, marketing and distributing food products and is well-positioned for continued success. In closing, it is most appropriate that we recognize the capabilities and contributions of our 65,000 associates. We have an exceptional team, and it is their dedication, integrity and commitment to our customers that drove our success in fiscal 2017. Thank you for your continued support.