BUILDING OUT THE STORE

Stephens Non-Deal Roadshow

September 1, 2015
Boston, MA

Disclaimer
The following information contains forward-looking statements. These forward looking statements are based on Managements
current expectations and beliefs, as well as a number of assumptions, estimates and projections concerning future events.
These statements, which are identified by words like "anticipate," "believe," "could," "estimate," "expect," "intend," "may,"
"plans," "seek," "should, "will," "would" and similar expressions, are subject to risks, uncertainties, changes in circumstances,
assumptions and other important factors, many of which are outside Managements control, that could cause actual results to
differ materially from the results discussed in the forward-looking statements. Such factors include, but are not limited to: our
dependence on principal customers; the relatively low margins and economic sensitivity of our business; our sensitivity to
general economic conditions, including the current economic environment, changes in disposable income levels and consumer
spending trends; increased fuel costs; our ability to reduce our expenses in amounts sufficient to offset our increased focus on
sales to conventional supermarkets and the resulting lower gross margins on these sales; the ability to identify and successfully
complete acquisitions of other natural, organic and specialty food and related product distributors; management's allocation of
capital and the timing of capital expenditures; and our sensitivity to inflationary pressures. A more detailed description of these
and other risks is contained in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission
on October 1, 2014 and in any prospectus. You are cautioned not to put undue reliance on such forward-looking statements
because actual results may vary materially from those expressed or implied. All forward looking statements are based on
information available to Management on this date, and United Natural Foods, Inc. assumes no obligation to, and expressly
disclaims any obligation to, update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise.
This presentation also contains certain non-GAAP financial measures such as EBITDA and free cash flow. Management believes
that EBITDA and free cash flow are measures commonly reported by issuers and widely used by investors as indicators of a
companys operating performance and cash flow liquidity. These non-GAAP financial measures, while providing useful
information, should not be considered in isolation or as a substitute for United Natural Foods, Inc.s net earnings as an indicator
of operating performance or as an alternative to cash flow as a measure of liquidity. Investors should carefully consider the
specific items included in our computations of EBITDA and free cash flow. EBITDA and pro forma free cash flow do not have any
standardized meanings prescribed by GAAP and, therefore, are unlikely to be comparable to similar measures presented by
other companies. Reconciliations between certain non-GAAP financial measures and the GAAP financial measures are included in
this presentation as relevant.

Overview
Investment Highlights
Company Overview
We are the Market Leader
Growth

Building out the Store

Thrive Drives Margin Growth

Financials
Culture of Sustainability

Investment Highlights
INVESTMENT HIGHLIGHTS

Key Investment Highlights

#1 Merchandiser of Natural and Organic in North America at $8
Billion USD
Highly Efficient Supply Chain & Logistics with 33 Distribution
Centers
Long-Standing Customer & Supplier Relationships
Attractive Market Fundamentals Large, Growing and Fragmented
Diverse Supplier, Product & Customer Base
UNFI has outpaced industry growth by > 200 basis points per year
Strategically Acquisitive
Annual Growth rate >14%
Sales & Earnings Doubled since 2009

COMPANY OVERVIEW

Company Overview
Leading distributor of natural, organic and specialty products(1)
Serve more than 40,000 customer locations with over 80,000
different products
Product innovation introduction of 12,000+ new products per year
Serves customers nationwide in U.S. and Canada with 33 distribution
centers and more than 7.8 million square feet in warehouse space
A sophisticated logistics, supply chain & transportation management
system
More than 8,800 associates
Strong culture of Sustainability & Philanthropy

(1) Based on sales volume

Nationwide Presence in the U. S. and Canada

33 distribution centers in the
U.S. and Canada.
Strategically located to provide:
efficient service
close to the customer
speed to market
reduced carbon footprint
UNFI Distribution
Atlanta, GA
Auburn, WA
Aurora, CO
Chesterfield, NH
Dayville, CT
Greenwood, IN
Hudson Valley, NY
Iowa City, IA
Lancaster, TX
Leicester, MA
Moreno Valley, CA
Racine, WI
Ridgefield, WA
Rocklin, CA
Sarasota, FL
Twin Cities (Prescott, WI)
York, PA
UNFI Distribution - Opening Soon!
Gilroy, CA Winter 2016

Alberts Organics
Aurora, CO
Logan Township, NJ
Charlotte, NC
Chesterfield, NH
Mounds View, MN
Sarasota, FL
Vernon, CA
Woodstock Farms Manufacturing
Edison, NJ
Select Nutrition
Auburn, CA
Philadelphia, PA (includes Honest Green)

Canadian Distribution
Richmond, BC
Burnaby, BC
Concord, ON
St. Laurent, QC
Trudeau Distribution
Minneapolis, MN
Tonys Fine Foods
West Sacramento, CA
Ridgefield, WA
Yuba City, CA

Earth Origins
Lake Mary, FL
Palm Harbor, FL
Port Charlotte, FL
Sarasota, FL
Ocala, FL
Gainesville, FL
St. Petersburg, FL
Easton, MD
Baltimore, MD
Centerville, MA

UNFI Broadline Distribution Network

Closest by far to all major customer markets
SEA

Existing
New

Seattle
RID

CHE

TWC
RAC

Chicago

SanSNW
ROC
Francisco

NYC

DAY

HVA

Denver

GIL

YRK

IOW

GRW

DEN

MOR

Los
Angeles

Dallas
TEX
Houston

ATL

SAR

UNFI Broadline Distribution Network

Closest to our natural & organic supplier partners
Allowing for freight optimization:
Consolidation of LTL vendors into full loads
ROC

Resulting in the lowest inventory

acquisition and inbound transportation
costs in our industry
MOR

10

Company Overview Diversified Products

Highly Diversified customer, product
and suppliers
Strategic business units that build out
the store across multiple categories:
Nutritional & Personal Care
Frozen Foods
Dairy
Produce & Perishables
Protein
Specialty Cheese
Grocery / General Merchandise
Gourmet & Ethnic
Ecommerce
Deli
Foodservice
Bakery
11

WE ARE THE MARKET LEADER

We are the Market Leader

Largest distributor of natural, organic and
specialty products(1) in the U.S. and Canada.
Integrated platform allows for the
distribution of natural, organic and specialty
product to a broad range of customers.

Sales by Product

(2)

Produce &
Perishables
20%

Bulk & Food

Service
Products
5%

Frozen Foods
13%

Personal Care
Items
5%

Grocery /
General
Merchandise
54%

Nutritional
Supplements
& Sports
Nutrition
3%

Network creates significant advantages over

smaller or regional distributors:
Broader product selection
Additional service offerings
Operational excellence

Sales by Channel
Conventional
Supermarket
26%

Scale
Independent
32%

(3)

Other
7%

Supernatural
35%

(1) Based on sales volume (2) Third quarter of fiscal 2015 (3) Third quarter of fiscal 2015

13

Attractive Market Fundamentals

$109.5 Billion

(1)

Natural Products Industry

$88.3 Billion

(2)

Specialty Industry

Large, Growing and Fragmented

Rapidly growing natural, organic and specialty products driven by demand for
a healthy lifestyle, food safety and the consumers environmental awareness.
10.5% growth rate in natural products(1) at retail, and 8.0% growth rate in
specialty products(2) with marginal growth for overall grocery industry.(1)(2)
Specialty foods represent 10.6% of total U.S. food sales.(3)
Only one national competitor ~40% the size of UNFI.(4)
Highly fragmented competitive environment. 200+ local and regional
competitors across the U.S.
(1)
(2)
(3)
(4)

Natural Foods Merchandiser/Nutrition Business Journal June 2014. Market size reflects calendar 2013
NASFT The State of the Specialty Food Industry 2014 April 2014. The study excludes sales at Whole Foods, Wal-Mart & Trader Joes. Market size reflects 2013
NASFT The State of the Specialty Food Industry 2013 April 2013. The study excludes sales at Whole Foods, Wal-Mart & Trader Joes. Market size reflects 2012
KeHE Distributors sales of $2.8 billion for fiscal 2014 per Moodys Investors Service July 2014

14

Market Growth Great for UNFI

Industry
Dynamics
Support UNFI
network

Major
barriers to
entry

UNFI is
Diversified

Saturation?

New Doors
Driving
Growth

Perishables
Rule

Overall
Demand
Continues

15

GROWTH
BUILDING OUT THE STORE

Pipeline for Growth

Expansion of Revenue Pipeline

M&A & Tonys

DEMAND e-Commerce

Customer Expansion

Expansion of Operating Margin Pipeline

THRIVE

I/O

WMS

CAPACITY

17

Building out the Store 2015-2017

18

Increase Market Share of Existing Customers Business

Primary supplier to majority of natural
products customer base including
Whole Foods

Selected Current Customers

Expand share in existing channels

Broadest product selection
Growth through SKU expansion
Leading Brands

19

Opportunity: New Channels Gourmet & Ethnic

Opportunity $5B Long term
Gourmet
& Ethnic
(+14.5%)

Natural

UNFI =12% of the Natural & Organic

market, but only 1.5% of the
Gourmet & Ethnic Market.

$50B

5% ($4.3B/yr.) of Gourmet & Ethnic

sales occur in the Natural Channel.
Gourmet & Ethnic products are
growing +14.5%.
Building out Ethic Gourmet Channel

$6.0B

UNFI

12%

OPPORTUNITY

UNFI

1.5%

20

UNFI Provides The Broadest Selection

4,100

65,000

6,000+

Active Suppliers

Unique SKUs

New Products/Yr.

UNFI Retail Category Management (RCM)

The Right SKUs Customized for the Retailers Shelf

21

UNFI Provides Delivery Intelligence

Proximity to the
Customer

The Only Intelligent

Ordering Device

FREE to Customers

$858m Current Orders

Promotion Information

Faster Catalog
Downloads

Higher Fill Rate

Shorter Distance
to the Customer
= Faster Deliveries

Customers Can:

Check their in-progress

delivery status

Understand if their
delivery was on time,
or within their
scheduled window

22

UNFI Provides Delivery Intelligence

Customer Places
Order on
iUNFI device

Order is picked
at Local UNFI DC

Customer is notified
and ready to receive
order with full staff
23

Customer Need: Translate Retail to E-Tail

The Landscape
Consumer Demand for Grocery e-Commerce is Growing and
Threatens the Traditional Retail Model

+$600b

+21.1%
Online

+3.1%
Offline
1% Online
Groceries are the
biggest untapped
Opportunity in
e-Commerce

2013-2018
Expected CAGR
Grocery
Source: BI Intelligence & Harris Interactive June 2014

Millennials
Are More Willing
to Pay a Premium
for Home Delivery
2X more likely
than Gen X
3X more than
Boomers
24

UNFI is Prepared for e-commerce

2012

Acquisition of

Direct to Store
Lower freight
in-store traffic

Current

15,000 SKUs
Select Nutrition-PA
Primarily Non-Grocery

Direct to Home
Convenient

May 2015

Hudson Valley
8-14K each SKUs
20K Case SKUs
Direct to Home or Direct
to Store
High Quality Images

Future

Expand Drop Ship

Capability to Mid West
and West DCs
Broad Assortment
Shorter Shipping
Distance

25

Tonys Nationwide Consolidation

26

Building out the perimeter

27

Continue to Selectively Pursue Opportunistic Acquisitions

Recent strategic acquisitions include:

Oct 02

September / October 2010 Acquired Whole Foods Markets remaining

two non-perishable distribution centers(1)

November 2011 B.K. Sethi Distribution Ltd.

August 2012 Disley Food Services, Inc. & Purity Organic Holdings, Inc.

September 2012 Honest Green (Green Irene, LLC)

September 2013 Trudeau Foods, LLC

July 2014 Tonys Fine Foods

Fragmented competitive landscape provides additional acquisition

opportunities, including potential for fold-in regional specialty
acquisitions

Canadian footprint provides a platform for growth

Potential to acquire SKU extensions

Dec 02

Dec 04

Jul 05

Nov 07

Jan 08

Canadian food
distribution

Assets (1)

Jun 10

Sept/Oct 10

Sep 13

Jul 14

28

Investment Highlights
FINANCIAL HIGHLIGHTS

Sustained Financial Strength

Note: Dollars in millions

$7,000

Sales

$6,064

$6,000

$5,236

$5,000

$4,530

$4,000
$3,000
$2,000
$1,000

Growth

$250
$225
$200
$175
$150
$125
$100
$75
$50
$25
Growth

$6,794

$1,670

$2,060

$2,434

$2,754

$3,366

$3,455

$3,757

FY 04

FY 05

FY 06

FY 07

FY 08

FY 09

FY 10

FY 11

FY 12

FY 13

FY 14

21.0%

23.3%

18.2%

13.2%

22.2
%

2.6%

8.7%

20.6%

15.6%

15.8
%

12.0%

Operating Income

$211
$185
$155

$58

FY 04
43.3%

$73

$80

FY 05
24.0%

FY 06
10.2%

$110

$115

$130

$93

$92

FY 07
17.0%

FY 08

FY 09

FY 10

FY 11

FY 12

(1.1)%

18.9%

4.5%

12.9%

19.6%

FY 13
19.6%

FY 14
13.6%

30

Channel Growth FY 12 FY 15
Supernatural Channel FY12-FY15
17.5%

38.0% 35.0%

16.4%
15.4%
14.4%
13.4%

12.6% 12.7%

11.9%
11.0% 10.7%
9.3%

27.0%

23.4% 22.2%

26.0%
16.8% 16.4%
15.3%

13.8%

25.0%

15.1%

10.6% 10.4%

9.2%

7.6%

5.9%

% of Total UNFI Sales

Independent Channel FY12-FY15

12.0%

9.7%

9.0%
8.0% 7.7%
7.6%

8.0%

8.6%

35.0%
34.0%

6.0%
4.0%

3.2%

33.0%

Q3 FY 15

Q2 FY15

Q1 FY15

Q3 FY14

Q2 FY14

Q1 FY14

Q4 FY13

Q3 FY13

Q2 FY13

Q4 FY14

% of Total UNFI Sales

Our growth consistently exceeds overall

industry growth despite fluctuations between
channels or individual customers.

Q3 FY15

Q2 FY15

Q1 FY15

Q4 FY14

Q3 FY14

Q2 FY14

Q1 FY14

Q4 FY13

31.0%
Q3 FY13

0.0%
Q2 FY13

32.0%
Q1 FY13

2.0%
Q4 FY12

Q1 FY13

Comparable Sales Growth

36.0%

8.4% 8.2%
6.9%

Comparable Sales Growth

23.0%

37.0%

11.0%

9.5%

24.0%

22.0%
Q4 FY12

Q3 FY 15

Q2 FY15

Q1 FY15

Q4 FY14

Q3 FY14

Q2 FY14

Q1 FY14

Q4 FY13

Q3 FY13

Q2 FY13

Q1 FY13

Comparable Sales Growth

10.0%

9.8%

37.0% 30.0%
25.0%
36.0%
20.0%
35.0%
15.0%
34.0%
10.0%
33.0% 5.0%

28.0%

32.0% 0.0%
Q4 FY12

18.0%
17.0%
16.0%
15.0%
14.0%
13.0%
12.0%
11.0%
10.0%
9.0%
8.0%

Supermarket Channel FY12-FY15

% of Total UNFI Sales

31

Track Record of Delivering Strong Financial Results

$2,300

Net Sales

Note: Dollars in millions

$2,100

$1,992 $2,024

$1,900

$1,782 $1,765

$1,700

$1,566
$1,388

$1,500
$1,300

$2,115

$1,217

$1,287

$1,344

$1,642 $1,602

$1,646

$1,410 $1,446

$1,100
$900

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13*

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

14 weeks

30%

Sales Growth

25%
20%

16%

15%
10%
5%
0%

24%

22%

13%

15%

15%

16%

15%

15%

16%

19%

16%
12%
15%

14%

13%

14%

14%

21%
11%

7%
13%

12%

13%

13%

10%
4%

1Q12

2Q12

3Q12

4Q12

1Q13

23%

2Q13

3Q13

4Q13*

1Q14

2Q14

3Q14 4Q14** 1Q15

8%

7%

2Q15

3Q15

14 weeks
* Fiscal 2013s fourth quarter comparable growth, adjusting for the extra week, was 13.4%
** Fiscal 2014s fourth quarter comparable growth, adjusting for the extra week in FY13, was 15.8%.
Note: Green represents comparable sales growth, excluding acquisitions. Blue represents total sales growth including the impact of acquisitions.

32

Leverage Profile
2.5

Times Levered

2.0

1.5

2.00

1.95

1Q15

2Q15

1.73

1.86

1.39
1.17

1.09

1.0

0.69

0.85

0.82

2Q13

3Q13

1.09

1.15

2Q14

3Q14

0.72

0.60
0.5

0.0

2Q12

3Q12

4Q12

1Q13

4Q13

1Q14

4Q14

3Q15

Note: The Company defines leverage as total outstanding debt divided by the sum of operating income and
depreciation & amortization on a trailing twelve months basis.

33

Fiscal 2016 Guidance

Revenues expected to increase by approximately 4.0% to 6.0% over
fiscal 2015, to a range of $8.51 billion to $8.67 billion.
GAAP diluted earnings per share in the range of $2.80 to $2.93, an
increase of approximately 1.1% to 6.2% over fiscal 2015.
Adjusted diluted earnings per share in the range of $2.86 to $2.98, an
increase of approximately 0.0% to 4.6% over fiscal 2015, adjusted for
the impact of the $7.7 million reduction in net sales.
Gross capital expenditures in the range of $49 - 59 million.
Effective tax rate expected to be 39.4% - 39.8%.

The Companys guidance is based on a number of assumptions, which are subject to change and many of
which are outside the control of the Company. If any of these assumptions vary, the Companys guidance
may change. There can be no assurance that the Company will achieve these results.
34

Culture of Sustainability
CULTURE OF SUSTAINABILITY

Sustainable Commitment
Decreasing our Carbon Footprint
In 2014, fleet efficiency improved by 3.3%, saving 287,000 gallons of
diesel fuel and 3,185 mtCO2e.
4.1M reduction of miles in HVA & RAC translates into a reduction in
diesel fuel of 575,000 gallons and 6,382 mtCO2e annually.
4.5 million kWh of renewable energy annually with our own solar panels.
We avoid GHG 3,103 mtCO2e annually, the equivalent of 392 passenger
vehicles per year.
carbon
emissions

renewable
energy

36

Gold Standard
LEED Certified Buildings
6 Gold LEED certifications totaling nearly
3 Million SF nationally
2 new facilities currently under
construction are expected to achieve
Gold LEED certification as well
LEED Attributes
75% of construction waste
diverted from landfill
At least 20% of all building
material made with recycled
content
Water use reduction of at least
40% compared to typical
comparable building
37

Summary
Strong History of Growth in Revenue and Earnings
Market Dynamics support double digit growth
UNFI infrastructure, supply chain, logistic and
diversified customer, supplier and product base
Sales & Earnings doubled since 2009
A culture of doing what is right