Sodexo Sa · EURONEXT:SW
Sodexo Sa — Q1 2024 Earnings Presentation
23 slides from Sodexo Sa's earnings presentation, May 1, 2024
Slide 1: Q1 Revenues Fiscal 2024
Q1 Revenues Fiscal 2024 January 5, 2024
Slide 2: Foreword
1. Foreword ▬ Sodexo Q1 Fiscal 2024 revenues release will focus on Sodexo continuing activities only. • Pluxee classified since August 31, 2023, as a discontinued operation under IFRS 5 in Sodexo’s consolidated financial statements. • Pluxee full spin-off and listing expected by February 1, 2024, su
Slide 3: Agenda
Agenda 01 Q1 Review of operations 02 Outlook 03 Q&A 04 Appendices 3
Slide 4: Q1 Review of operations
1. Q1 Review of operations sodexo
Slide 5: Solid Organic Revenue Growth at +8.2%
1. Solid Organic Revenue Growth at +8.2% Sodexo Revenue €6,287m +3.1% Currency effect Scope Change -4.8% -0.3% By region By service North Europe Rest of the Organic growth Food FM America World +8.2% +8.7% +9.2% +4.7% +10.0% +4.7% +7.6% +8.1% excl. excl. Rugby accounting World Cup change Note: The Q
Slide 6: Continuous positive momentum in Net new business in Q1
2. Continuous positive momentum in Net new business in Q1 Focus on some new contracts across our geographies North America Europe Rest of the Word Tufts Medicine Public sector contract renewals Murrin Murrin Operations HEAL WORK WORK 10-year extension for current contract £34 million value Provision
Slide 7: Q1 pricing and cost inflation normalizing
2. Q1 pricing and cost inflation normalizing Pricing Cost inflation ▬ Q1 Pricing impact circa 4.5% ▬ Internal food inflation is coming down substantially in most regions, ▬ In line with expectations of 3 to 4% currently at low to mid single digit, for the year but with Europe still high single digit
Slide 8: North America – Q1 Revenues
46% 2. North America – Q1 Revenues On-site Services FY23 (in million euros) Restated Organic Growth Organic Business & Administrations +12.1% growth Net +8.7% acquisitions • Favorable impact of new business • Volume growth from convention centers, increased passenger counts Unfavorable in Airline Lo
Slide 9: Europe – Q1 Revenues
36% 2. Europe – Q1 Revenues On-site Services FY23 (in million euros) Restated Organic Growth Business & Administrations +10.1% +7.5% Organic Excl. growth • Price increases and higher attendance Rugby World Cup +9.2% • Rugby World Cup related sales Net • Decline in international tourism in Paris Unfa
Slide 10: Rest of the World – Q1 Revenues
18% 2. Rest of the World – Q1 Revenues On-site Services FY23 (in million euros) Restated Organic Growth Organic Business & Administrations +5.0% +8.9% growth +4.7% Excl. • Solid performance in India and strong performance in Australia accounting Net and Latin America change i.e. +8.1% acquisitions U
Slide 11: Outlook
—~ 2. Outlook
Slide 12: Fiscal 2024 and 2025 guidance maintained
4. Fiscal 2024 and 2025 guidance maintained Organic Growth +6% to +8% for FY2024 & FY2025 UOP Margin +30-40 basis points p.a. in FY2024 & FY2025 at constant rates January 5, 2024 – Sodexo first quarter revenues - © Sodexo 2024. All rights Reserved 12
Slide 13: Q&A
3. Q&A * sodexo
Slide 14: Appendices
4. Appendices * sodexo 1g
Slide 15: Modelling details for FY2024
Appendix 1 Modelling details for FY2024 (At constant rates) Scope change effect on Other income Net financial Tax rate Fiscal 2024 revenues and expenses (1) (2) expenses ~ -2% ~ €-20m ~ €100m 26-27% Net income from discontinued operations will include: ▬ 5 months of Pluxee’s net income. ▬ A provisio
Slide 16: Q1 Fiscal 2024 exchange rates
Appendix 2 Q1 Fiscal 2024 exchange rates Average Rate Closing Rate Closing Rate Closing Rate Average Rate Average Rate Q1 Fiscal 24 FY Fiscal 24 FY Fiscal 23 11/30/23 1€ = Q1 Fiscal 24 Q1 Fiscal 23 vs. Q1 Fiscal 23 at 11/30/2023 at 08/31/2023 vs. 08/31/23 U.S. Dollar 1.070 0.996 -6.9% 1.093 1.087 -0
Slide 17: Q1 Fiscal 2024 Revenue breakdown
Appendix 3 Q1 Fiscal 2024 Revenue breakdown REVENUES BY SEGMENT (in million euros) Q1 2024 Q1 2023 Organic Growth External Growth Currency Effect Total Growth North America 3,030 2,992 +8.7% +0.1% -7.6% +1.3% Europe 2,196 2,047 +9.2% (1) -0.8% -1.2% +7.3% Rest of the World 1,061 1,057 +4.7% (2) -0.2
Slide 18: New segment reporting following evolution of the On-site Services organization
New segment reporting following evolution Appendix 4 of the On-site Services organization As part of the streamlining of the organization, from Fiscal 2024 some contracts or operations have been reallocated between segments, with main impacts in Europe from Healthcare & Seniors to Education. Restate
Slide 19: Alternative Performance Measure - Definitions
Appendix 5 Alternative Performance Measure - Definitions Organic growth Underlying Operating margin Organic growth corresponds to the increase in revenue for a given period (the "current The Underlying Operating profit margin corresponds to Underlying operating profit period") compared to the revenu
Slide 20: Financial calendar
Appendix 6 Financial calendar Jan 10, Jan 30, Feb 1, April 19, July 2, Oct 24, Dec 17, 2024 2024 2024 2024 2024 2024 2024 Pluxee AGM Pluxee H1 FY Q3 FY 2024 FY 2024 CMD to approve Quotation 2024 FY 2024 Results AGM Pluxee Results Revenues distribution These dates are purely indicative and are subjec
Slide 21: Key figures
Appendix 7 Key figures As of August 31, 2023 ▬ Founded in 1966 by Pierre Bellon ▬ As at 31/08/2023, Bellon S.A. holds 42.8% of capital (57.9% of voting rights) €22.6bn revenues ▬ Our purpose is to create a better everyday for everyone to build a better life for all 430,000 employees 80 million consu
Slide 22: Investor relations contacts
Appendix 8 Investor relations contacts Head of Investor Relations ▬ Virginia JEANSON Tel: + 33 1 57 75 80 56 virginia.jeanson@sodexo.com Deputy Head of Investor Relations Head of Pluxee Investor Relations ▬ Juliette KLEIN ▬ Pauline BIREAUD Tel: + 33 1 57 75 80 27 juliette.klein@sodexo.com Pauline.bi
Slide 23: Disclaimer
Appendix 9 Disclaimer Certain information included in this presentation are forward-looking statements, including in relation to the proposed spin-off and listing of Benefits & Rewards Services. These forward-looking statements are based on current beliefs, expectations and assumptions, including, w