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The 5V output is from the PMID pin when no input power is available and the battery is providing power to the buck converter, which is operating in reverse as a boost converter. The SYS output equals the following:
2a)Only My Adpter in put is connected , No Battery Connected - 4.2V
2b) Only Battery is connected , No Apter input is there - BATTERY VOLTAGE
2c) Both Adapter and Battery is connected. - MINSYS (user selected 3.0V to 3.7V) the follows the battery voltage up to 4.2V
