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Sodexo Sa — 9M Fiscal 2017 Earnings Presentation

28 slides from Sodexo Sa's earnings presentation, Jul 6, 2017

  1. Slide 1: Nine Months Fiscal 2017 Revenues

    NINE MONTHS FISCAL 2017 REVENUES July 6, 2017

  2. Slide 2: Forward-Looking Information

    FORWARD-LOOKING INFORMATION This presentation contains statements that may be considered as forward-looking statements and as such may not relate strictly to historical or current facts. These statements represent management's views as of the date they are made and Sodexo assumes no obligation to up

  3. Slide 3: Agenda

    AGENDA 1. First Nine Months Fiscal 2017 highlights 2. Review of Operations: On-site Services and Benefits & Rewards Services 3. Outlook 4. Appendices 3 July 6, 2017 - Sodexo Nine Months Fiscal 2017 revenues

  4. Slide 4: First Nine Months Fiscal 2017 Highlights

    FIRST NINE MONTHS FISCAL 2017 HIGHLIGHTS

  5. Slide 5: Key Messages

    KEY MESSAGES First Nine months Fiscal 2017 highlights YTD ORGANIC Q3 BENEFITS GROWTH* ON-SITE & REWARDS +0.5% +1.3% +6.1% Disappointing strong YTD organic growth excluding Rugby World Cup but fundamentals improving +1.3% No acceleration in Q3: Lower than expected activity Weaker Corporate activity Q

  6. Slide 6: Contract Wins in Q3

    CONTRACT WINS IN Q3 First Nine Month Fiscal 2017 highlights Citadel Clifton College Chirec Food University contract School contract Health Care contract services in the US in the UK in Belgium thecamp Aix-en-Provence Arena & Groupama Campus Pick-up Corporate contract Bordeaux Metropole Arena Corpora

  7. Slide 7: Review of Operations

    REVIEW OF OPERATIONS On-site Services Benefits & Rewards Services

  8. Slide 8: First Nine Months 2017 Revenues

    ORGANIC GROWTH First nine months 2017 revenues REVENUE: €16bn +1.7% Currency effect Scope changes +0.8% +0.4% ORGANIC GROWTH +0.5% | +1.3% excluding Rugby of which: On-site Services Benefits & Rewards Services +0.3% | +1.1% excluding Rugby +6.1% 8 July 6, 2017 - Sodexo Nine Months Fiscal 2017 revenu

  9. Slide 9: B&A Momentum Improving Quarter After Quarter

    B&A MOMENTUM IMPROVING QUARTER AFTER QUARTER On-site Services % of Fiscal 2016 On-site Services YTD ORGANIC GROWTH restated -0.5% Business & Administrations  Diluted impact of Rugby World Cup 54% +1.1%  Energy & Resources and Government & Agencies Excluding turned positive in Q3 Rugby  Strong gro

  10. Slide 10: Business & Administrations

    BUSINESS & ADMINISTRATIONS 54% On-site Services On-site Services YTD ORGANIC GROWTH REVENUES +3.6% North America € millions Organic 22% growth Favorable  Continued strong growth in Corporate services, Acquisitions currency effect particularly in FM of Restated 7,869 7,883  Return to growth in Gove

  11. Slide 11: Health Care & Seniors

    HEALTH CARE & SENIORS 25% On-site Services On-site Services REVENUES YTD ORGANIC € millions Favorable GROWTH Organic growth Acquisitions currency effect 3,759 +2.7% North America 65% 3,647  Phasing difference of new business  Lower comparable unit growth in Q3 of restated Health Care FY16 -1.0% Eu

  12. Slide 12: Education

    EDUCATION 21% On-site Services On-site Services REVENUES YTD ORGANIC GROWTH € millions Organic Favorable currency effect +0.1% North America 77% growth  Solid contribution from LY development 3,622 3,673 and good retention in Schools of restated Education  In Universities in Q3, positive calendar

  13. Slide 13: 9M Fiscal 2017 Organic Growth of +0.3%

    9M FISCAL 2017 ORGANIC GROWTH OF +0.3% On-site Services by region -4.0% EUROPE including UK & Ireland NORTH AMERICA +1.9% -2.0% excluding Rugby +7.5% AFRICA - ASIA -AUSTRALIA LATAM & MIDDLE EAST 13 July 6, 2017 - Sodexo Nine months Fiscal 2017 revenues

  14. Slide 14: Issue Volume and Revenues

    ISSUE VOLUME AND REVENUES Benefits & Rewards Services ISSUE VOLUME* REVENUES € billions € millions Favorable Favorable currency effect currency effect Organic growth Acquisitions Acquisitions Organic growth 13.5 673 12.2 576 ORGANIC GROWTH ORGANIC GROWTH +5.9% +6.1% 9M Fiscal 2016 9M Fiscal 2017 9M

  15. Slide 15: Issue Volume and Revenues – Latin America

    ISSUE VOLUME AND REVENUES – LATIN AMERICA 48% FY 16 revenues Benefits & Rewards Services ISSUE VOLUME REVENUES € billions € millions Favorable Favorable currency effect currency effect Organic growth 321 Organic growth 5.9 274 4.9 ORGANIC GROWTH ORGANIC GROWTH +6.4% +2.1% 9M Fiscal 2016 9M Fiscal 20

  16. Slide 16: Issue Volume and Revenues – Europe, Asia, USA

    ISSUE VOLUME AND REVENUES – EUROPE, ASIA, USA 52% FY 16 revenues Benefits & Rewards Services ISSUE VOLUME REVENUES € billions € millions Acquisitions Organic growth Acquisitions Organic growth unfavorable unfavorable currency effect 352 7.3 currency effect 7.7 302 ORGANIC GROWTH ORGANIC GROWTH +5.6%

  17. Slide 17: Outlook

    OUTLOOK

  18. Slide 18: Fiscal 2017 Objectives

    FISCAL 2017 OBJECTIVES Outlook Confidence in acceleration in Q4 based on:  Contribution of contract startups in May and June  Further acceleration in Energy & Resources Organic revenue growth Disappointing of +1.5 to +2% Q3 performance:  Return to growth in France  Healthcare  Positive calendar

  19. Slide 19: Medium-Term Objectives

    MEDIUM-TERM OBJECTIVES Outlook Long-term trends remain positive with:  further significant outsourcing and contract consolidation potential  growth in developing economies  strong potential of the new segment organization  increased M&A contribution average annual growth average annual growth in

  20. Slide 20: Slide 20

  21. Slide 21: Appendices

    APPENDICES 1. 2016 new segment breakdown 2. Main Exchange rates 3. 9M Fiscal 2017 Revenue growth 4. Alternative performance measure definitions

  22. Slide 22: 2016 New Segment Breakdown

    2016 NEW SEGMENT BREAKDOWN Appendix 1 Revenues Revenues YTD Revenues YTD Revenues YTD Revenues YTD % of total (In million of euro) Q1 Fiscal 2016 H1 Fiscal 2016 9M Fiscal 2016 FY Fiscal 2016 FY 16 revenues Business & Administrations 2 808 5 322 7 869 10 433 52% North America 584 1 148 1 729 2 340 Eu

  23. Slide 23: Main Exchange Rates

    MAIN EXCHANGE RATES Appendix 2 Closing rate Average rate 9M Average rate 9M Reference rate FY Change 9M 17 Closing rate at 31/05 1€ = Fiscal 17 Fiscal 16 Fiscal 16 vs. Reference FY 16 at 31/05/17 2017 vs.2016 U.S. Dollar 1.082 1.105 1.106 +2.3% 1,117 -0.3 % Pound 0.860 0.750 0.767 -10.8% 0.868 -12.3

  24. Slide 24: 9 Months Fiscal 2017 Revenue

    9 MONTHS FISCAL 2017 REVENUE Appendix 3 € millions +0.5% +0.4% +0.8% Organic growth Net acquisitions Favorable currency effect 15,984 15,709 +1.7% Total variation 9M Fiscal 2016 9M Fiscal 2017 Organic growth is defined as growth at constant exchange rates (converting 9M Fiscal 2017 figures at Fiscal

  25. Slide 25: 9 Months Fiscal 2017 Revenue

    9 MONTHS FISCAL 2017 REVENUE Appendix 3 Revenues (in millions of euro) 9M Fiscal 2017 9M Fiscal 2016 Organic growth Published growth Business & Administrations 7,883 7,869 -0.5% +0.2% Health Care & Seniors 3,759 3,647 +1.9% +3.1% Education 3,673 3,622 +0.2% +1.4% On-site Services 15,314 15,137 +0.3%

  26. Slide 26: Alternative Performance Measure Definitions

    ALTERNATIVE PERFORMANCE MEASURE DEFINITIONS Appendix 4 Exceptional expenses Exceptional expenses are the costs of implementation of the Adaptation and Simplification program closed last February of which €108m were booked in Fiscal 2016 and €137m booked in H1 FIscal 2017. Issue volume Issue volume c

  27. Slide 27: Alternative Performance Measure Definition

    ALTERNATIVE PERFORMANCE MEASURE DEFINITION Appendix 4 Organic growth Organic growth corresponds to the increase in revenue for a given period (the "current period") compared to the revenue reported for the same period of the prior fiscal year, calculated using the exchange rate for the prior fiscal

  28. Slide 28: Thank you

    * Sodexo QUALITY OF LIFE SERVICES

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