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UNFI

Investor Steven L. Spinner


Chairman, CEO & President

Presentation Kirsten Hogan


National Vice President
Retail Services

Halie O’Shea
Director Investor Relations &
Expo West – March 2017 Corporate Strategy
Disclaimer

The following presentation contains “forward-looking statements.” These forward looking statements involve risks and uncertainties and are based on current
expectations and management estimates; actual results may differ materially. The risks and uncertainties which could impact these statements are described
in filings United Natural Foods, Inc. (the “Company”) has made under the Securities Exchange Act of 1934, as amended, including its annual report on Form
10-K filed with the Securities and Exchange Commission (the "SEC") on September 28, 2016, its quarterly reports on Form 10-Q filed with the SEC on
December 8, 2016 and March 9, 2017 and other filings the Company makes with the SEC, and include, but are not limited to, the ability of the Company to
retain Haddon House’s, Nor-Cal's, Global Organic/Specialty Source, Inc. and Gourmet Guru, Inc. and their affiliated entities that we purchased on terms
similar to those in place prior to our acquisition of these businesses; the Company's dependence on principal customers; the Company's sensitivity to general
economic conditions, including the current economic environment; changes in disposable income levels and consumer spending trends; the Company's ability
to reduce its expenses in amounts sufficient to offset its increased focus on sales to conventional supermarkets and the shift in the Company's product mix as
a result of its acquisition of Tony's Fine Foods and the resulting lower gross margins on those sales; the Company's reliance on the continued growth in sales
of natural and organic foods and non-food products in comparison to conventional products; increased competition in the Company's industry as a result of
increased distribution of natural, organic and specialty products by conventional grocery distributors and direct distribution of those products by large retailers;
the Company's ability to timely and successfully deploy its warehouse management system throughout its distribution centers and its transportation
management system across the Company; the addition or loss of significant customers; volatility in fuel costs; volatility in foreign exchange rates; the
Company's sensitivity to inflationary and deflationary pressures; the relatively low margins and economic sensitivity of the Company's business; the potential
for disruptions in the Company's supply chain by circumstances beyond its control; the risk of interruption of supplies due to lack of long-term contracts,
severe weather, work stoppages or otherwise; consumer demand for natural and organic products outpacing suppliers’ ability to produce those products;
moderated supplier promotional activity, including decreased forward buying opportunities; union-organizing activities that could cause labor relations
difficulties and increased costs; the ability to identify and successfully complete acquisitions of other natural, organic and specialty food and non-food
products distributors; management's allocation of capital and the timing of capital expenditures; the Company's ability to successfully integrate and deploy its
operational initiatives to achieve synergies from the acquisitions of Tony’s Fine Foods, Global Organic, Nor-Cal, Haddon House and Gourmet Guru; and the
Company’s ability to realize the anticipated benefits from its restructuring program in conjunction with various efficiency initiatives, including acquisition
integration, severance and other transition related costs, as well as the anticipated opening of the Company’s shared services center, and within the cost
estimates currently contemplated; and the potential for business disruptions in connection with the anticipated creation of the Company’s shared services
center. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date
made. The Company is not undertaking to update any information in the foregoing reports until the effective date of its future reports required by applicable
laws. Any projections of future results of operations are based on a number of assumptions, many of which are outside the Company's control and should not
be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final
reported results. The Company may from time to time update these publicly announced projections, but it is not obligated to do so.

This presentation also contains certain non-GAAP financial measures such as adjusted diluted earnings per common share, debt to EBITDA ratio, adjusted
net sales growth and free cash flow. The reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are
presented in the tables of the Company’s earnings releases filed with the SEC as part of an 8-K on each of September 12, 2016 and March 8, 2017 and on
the Company’s Investor Relations Website. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a
substitute for any measure prepared in accordance with GAAP. The Company believes that presenting these non-GAAP financial measures aids in making
period-to-period comparisons and is a meaningful indication of its estimated operating performance. The Company's management utilizes and plans to utilize
this non-GAAP financial information to compare the Company's operating performance during the 2017 fiscal year to the comparable periods in the 2016
fiscal year and to internally prepared projections.

2 Investor Presentation
• Investment Highlights

• Industry Dynamics

• Strategic Initiatives

• UNFI Next

• Store Design &


Solutions

• Financials

• Culture of Sustainability

agenda
3 Investor Presentation
Investment Highlights
large word
UNFI is the largest distributor by sales of Natural & Organic products in North
America

• Highly efficient supply chain and logistics, 33 distribution centers


• 43,000 customer locations across the U.S. and Canada
• 2016 four strategic acquisitions representing approximately $700
million in annual net sales
• Flexible balance sheet with 1.82x Debt-to-EBITDA at end of Q2
fiscal 20171
• 5-Year compound annual net sales growth of approximately 13%
>13%
annual
• FY 2016 Generated $255m in Free Cash Flow growth rate

• Nearly $8.9 billion in net sales2

1The Company defines leverage as total outstanding debt divided by the sum of operating income and depreciation & amortization on a trailing 12 month basis. A
reconciliation has been posted to the company’s website.
2Trailing 12 months through Q2 fiscal 2017

4 Investor Presentation
Market Dynamics are Evolving
A Challenging Industry Environment

Natural and Organic still outpacing Conventional Food but


Headwinds have increased
• Heightened competition
• Slower sales trends at many of our retail customers
• Natural & Organic now available in more outlets – fast growth
in mass and other outlets where UNFI is under-indexed
• Consumer buying habits are changing in a maturing
consumer driven economy
• Deflation in produce and protein

5 Investor Presentation
Moving Forward
Fiscal 2017 renewed momentum

Committed to our Building out the Store Strategy


• Sales reorganization leverages acquisitions and Building out
the Store strategy
• UNFI continues to grow its national fresh platform with new
and existing customers
• Building our depth in fresh, gourmet, ethnic and specialty
• Infrastructure to support growth in eCommerce
• Commitment to sustainability and philanthropy

6 Investor Presentation
The Trifecta of
change
Fast moving food evolution

1 2 3
Industry UNFI Suppliers/Retailers

Channel dilution Integration of assets Adapting to consumers


• growth of alternate channels • building out the store acquisitions • constant change/trend
• consumer perimeter migration • discovering what’s next – • increase of options (e.g. eCom)
• natural and organic product – brands • brands/products/access
availability – products • consolidation
– services

7 Investor Presentation
Strategic
Initiatives

8 Investor Presentation
UNFI Strategy

Building out the Store


eCommerce

perimeter

center

9 Investor Presentation
UNFI product sales %
Category
UNFI has invested in Fresh to respond to consumer trends

Category Exposure Fiscal 2016 Category Exposure Fiscal 2014

Produce & Produce &


Perishables Perishables
33% 25%

Frozen Foods
Frozen Foods 12%
10% Bulk & Food
Grocery & Service
Grocery & Bulk & Food
General 5%
General Service
Merchandise
Merchandise 4%
50%
46% Personal Care
Personal Care 4%
4%
Nutritional
Nutritional Supplements
Supplements & Sports
& Sports Nutrition
Nutrition 4%
3%

Produce & Perishables includes UNFI fresh categories, such as produce, cheese and meat
Category data is measured by net sales and represents distribution net sales

10 Investor Presentation
History of Integration Success

Mergers & Acquisitions


Building out the store – legacy of moving food and business forward

• Conservative balance sheet supports strategic acquisitions

• Focus on fresh, eCommerce and ethnic gourmet based products

2010 - today

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2016 FY 2017

SunOpta B.K. Sethi Pacific Organic Produce Trudeau Tony’s Fine Haddon House Gourmet Guru
Disley Food Service Foods Global Organic
UNFI Canada
Honest Green Nor-Cal Produce

11 Investor Presentation
Competitive advantage
Diverse Product Offering
• #1 in natural & organic • Custom snack solutions
• Fresh, frozen, grocery, health & beauty • Roasting, blending, custom flavors, brand
solutions
• Organic produce & fresh products
• Expertise in sourcing & transparency • 19 consumer brands - organic, natural,
specialty products
• Food from trusted sources
• 40+ years delivering fresh
• Conventional & organic produce, floral
• New/emerging fresh & organic products
• Focused on innovative & local brands
• 80+ years fresh; specialty cheese expertise
• Natural protein, deli, bakery, food service,
specialty, perishable • Drop shipping for 35,000+ wellness &
grocery products
• Nationwide delivery via UPS® & LTL
• 20,000+ specialty items, ethnic, gourmet,
kosher
• Natural, organic, kosher, specialty, ethnic,
• Exclusive brands
natural health care products

• Vitamins, supplements, personal care,


sports nutrition
• Organic, kosher, non-GMO, vegan

12 Investor Presentation
One Sales Team – new operating model
Getting closer to the customer to add value from supply to market

1 organized geographies 2 selling across brands

pacific central atlantic

• Three regions & appointed leadership


• P&L accountability
• Smaller territories to drive more • Formed One Sales Team with
customer touch points each brand represented
• Demonstrates our range

13 Investor Presentation
UNFI is well-positioned

eCommerce

B2B customer segments UNFI services

E-tailers Click & Mortar Too Small To Service


“Virtual stores” that want to Small and National retailers that Non-traditional accounts that
carry or specialize in natural & want to offer a broader range of want UNFI SKUs
organic items beyond their shelves

*Morgan Stanley Alpha Wise Report, January 2016


14 Investor Presentation
discover
what’s next

15 Investor Presentation
UNFI Next e·merg·ing
Telling our story newly created or noticed and
growing in strength or popularity;
becoming widely known or
established
What is UNFI Next?

UNFI Next is dedicated to discovering what’s next


from local sourcing to mentoring emerging suppliers
to deliver on food trends that create value & engage
the consumer so that customers are the destination
for the new & now.

16 Investor Presentation
Creating Value from Supplier to Marketplace
Our role as a pioneer for emerging brands

• Separate but connected to UNFI Supplier Relationship Management


• High touch ― lots of service and support
• Understanding supplier’s level of development in order to better engage
• Connect suppliers to customers and vice versa
• Equipped to address speed to shelf and demand for customers
• Create a clear path from the supplier’s door to customers shelf
• Streamlines and broadens distribution throughout the chain
• Gives retail customers convenient and efficient way to add emerging brands to their shelves

Broker

Supplier UNFI (Supplier Customer Consumer


Development Manager)

17 Investor Presentation
Supplier qualification
Primary Criteria
• Brand ‘Reason for Being’/Category Disruptor
• Market Ready Product Positioning
• Age of Brand & Sales**
• Sales Goal & Brand Growth for Next 3 years

Secondary Criteria
• Marketing Plan is Established
• Investment is Allocated to Supporting Marketing/Sales Goals
• Sales & Marketing Support Available

**Age & Sales are discretionary evaluation criteria.

18 Investor Presentation
Positioning our team
Close to local suppliers – covering every region

Resident SDM
WA

ND ME
MT MN Massachusetts – Northeast
VT NH

OR
ID
NY MA Missouri – Upper Midwest
WI
SD RI
CT
MI
WY
IA
NJ
Texas – SW, Texas, Denver, etc.
PA
NE OH
NV IL
MD DE So California – CA & surrounding
UT
IN WV
MO
CA CO
VA Washington – Pac North West
KS
KY
NC
TN
AZ SC
OK AR
NM

MI
AL GA

FL
LA
TX

19 Investor Presentation
large word
2017 Marketing
Tools to connect our brands

Discover What’s Next


• Presentation of brands to the UNFI Sales team

The Next Big Thing


• Email blasts detailing promotional discounts for
UNFI Next brands

New & Now


• UNFI Next Brands flagged in each edition

UNFI Next Ad Space (Monthly Special Catalog)


• Regular publication of UNFI Next Brands
• ‘Staff picks’ to be featured

UNFI Tabletop show


• UNFI Next suppliers featured

20 Investor Presentation
Keeping our customers relevant
We let customers know what they have, what’s available, and what’s next

In Your Mix Available Today Opportunities

21 Investor Presentation
Store Design &
Solutions

22 Investor Presentation
Merchandising &
design
Expertise and solutions to move business forward
Store Design – from analysis to design and execution
– feasibility studies
– store layout concepts
– equipment plans & procurement
– equipment procurement
– interior planning & design

Space Planning – the best use of space & ROI at shelf


– core planogram development
– custom planograms
– creating customer layouts with categories
– set scan
– gap analysis & top item reports

23 Investor Presentation
Merchandising &
design
Managing your brand/product in-store
Merchandising

– new store sets

– remodels

– transitions

– category resets

– new item cut-ins

– cycle coverage

– show set-ups

24 Investor Presentation
Financials

25 Investor Presentation
Financial Strength
$10,000 Net Sales ’12 –’16 CAGR 13%
$9.38B to $9.46B
$9,000 $8,184 $8,470
$8,000
’06 –’11 CAGR 13% $6,794
Dollars in millions

$7,000 $6,064
$6,000 $5,236
$5,000 $4,530
$3,366 $3,455 $3,757
$4,000
$2,434 $2,754
$3,000
$2,000
$1,000
$0
FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY17
Guidance
Growth 18.2% 13.2% 22.2% 2.6% 8.7% 20.6% 15.6% 15.8% 12.0% 20.5% 3.5% 10.7% to 11.7%

$300 Operating Income ’12 –’16 CAGR 10%


$242
$250 $224
$211
$200 ’06 –’11 CAGR 10% $185
$155
$150 $130
$110 $115
$93 $92
$100 $80

$50

$0
FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16

Growth 10.2% 17.0% (1.1)% 18.9% 4.5% 12.9% 19.2% 19.4% 13.6% 14.8% (7.4)%
Sales in FY 2016 increased 8%, excluding a customer distribution contract that was terminated in the first quarter of fiscal 2016. Reconciliation available in Q4 fiscal
2016 press release from September 12, 2016.
26 Investor Presentation
Fiscal 2017
Guidance
• Net sales expected to increase by approximately 10.7% to 11.7%
over fiscal 2016, to a range of $9.38 billion to $9.46 billion

• GAAP diluted earnings per share in the range of $2.49 to $2.54

• Adjusted diluted earnings per share in the range of $2.53 to


$2.581

• Capital expenditures in the range of 0.5% to 0.6% of fiscal 2017


net sales

• We expect Free Cash Flow in the range of $150 million to $175


million2

• Effective tax rate expected to be 39.7% to 40.1%

The Company’s 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 Company’s guidance may change. There can be no assurance that the Company will achieve these results.
1 Adjusted diluted earnings per share excludes estimated severance and other employee separation costs related to the announced planned opening of the Company’s

shared services center, as well as other workforce reductions with most anticipated to occur in the third quarter of fiscal 2017, with certain shared service related
transitions extending into the second quarter of fiscal 2018. Reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure
is included in the Company’s press release reporting its financial results for the second fiscal quarter ended January 29, 2017, furnished to the SEC on March 8, 2017.
2 Reconciliation of this non-GAAP financial measure, which excludes estimated capital expenditures, to the most directly comparable GAAP financial measure is included

on the Company’s Investor Relations website. .

27 Investor Presentation
FY16 Key Achievements
Corporate Social Responsibility

Recycling Clean Energy Volunteerism Giving Back Hunger Relief

76% or 24,700 Over 4.3M 11,000 hours $596,000 Over 13 million


tons of waste kWh clean volunteered; donated pounds of food
diverted from energy $140,000 through UNFI donated to
landfill, 9% generated on- raised for UNFI Foundation to food banks
improvement site through Associate promote
over FY 2016 solar Relief Fund healthy,
organic food
systems

28 Investor Presentation
• 40-year history

• Consistent growth

• Future-focused and adaptable

• The very best people

• A culture of doing what’s right


Thank you

© 2016 United Natural Foods, Inc.