Slide 1: Fiscal 2016 Results
FISCAL 2016 RESULTS November 17, 2016
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
Slide 3: Contents
CONTENTS 1. FISCAL 2016 HIGHLIGHTS 2. FISCAL 2016 PERFORMANCE 3. ON-SITE SERVICES 4. BENEFITS AND REWARDS SERVICES 5. NEW SEGMENT REPORTING 6. OUTLOOK 7. ALTERNATIVE PERFORMANCE MEASURE DEFINITIONS APPENDICES 3 – Fiscal 2016 Results - November 17, 2016
Slide 4: Fiscal 2016 Highlights
FISCAL 2016 HIGHLIGHTS 4 – Fiscal 2016 Results - November 17, 2016
Slide 5: Highlights of Fiscal 2016
HIGHLIGHTS OF FISCAL 2016 Yet another year of solid performance: Operating profit1 Further Operating Strong balance Revenue profit margin1 sheet growth objective organic growth* improvement achieved +2.5% 11% +8.2% + 30 BPS Gearing* Segmentation Consumer focus Recognized enhancing Developing driving
Slide 6: Another Year of Solid Performance
ANOTHER YEAR OF SOLID PERFORMANCE +2.2% +2.5% Reported revenue €20.2bn Total growth Organic growth * Operating profit €1,203m + 8.2% Excluding Before exceptional expenses* currency effect * Operating margin 5.9% + 30 bps Excluding Before exceptional expenses* currency effect* Exceptional expenses €1
Slide 7: Another Year of Solid Performance
ANOTHER YEAR OF SOLID PERFORMANCE Group net profit + 5.2% Before non-recurring items* €721m Excluding currency effect* EPS + 5.8% Before non-recurring items* €4.77 Excluding currency effect* 7 – Fiscal 2016 Results - November 17, 2016
Slide 8: Another Year of Solid Performance
ANOTHER YEAR OF SOLID PERFORMANCE Free cash flow* Net debt* Gearing* €595m €407m 11% Proposed dividend per share €2.40 +9.1% Payout ratio1 ~50% Total payout1 €371 million Share repurchase program €300 million ~1.9% of capital As per August 31 2016 1 Payout ratio: Dividend/EPS before non recurring it
Slide 9: Segmentation Is Enhancing Business Opportunities
SEGMENTATION IS ENHANCING BUSINESS OPPORTUNITIES Clients seeking productivity Driving segment development and global footprint in white spaces Melaleuca Women’s prison in Australia 9 – Fiscal 2016 Results - November 17, 2016
Slide 10: Segmentation Is Enhancing Business Opportunities
SEGMENTATION IS ENHANCING BUSINESS OPPORTUNITIES Facilities management services contract extensions and development Greater Geographic extensions of current client relationships client intimacy More agile management of large global accounts More services integration between Benefits and Rewards and
Slide 11: Leverage Innovation Culture
INCREASE THE VALUE WE BRING THROUGH INNOVATION LEVERAGE INNOVATION CULTURE Share Take part Develop Innovate your ideas in a contest your ideas with partners eNOVhub eNOVcontest eNOVprogram Open Innovation A web platform allowing The eNOVchallenge was only Innovate continuously and Think out of the b
Slide 12: Consumer Focus, Digital to Respond to Consumer Behavior Shifts
CONSUMER FOCUS, DIGITAL TO RESPOND TO CONSUMER BEHAVIOR SHIFTS Bring families closer together and provide added-value services So Happy for schools in Germany, and France GrandPad Crèche Attitude in the US in France Flexibility and personalization Enhance consumer in line with new ways of working ex
Slide 13: Sodexo Ventures Fund
SODEXO VENTURES FUND €50 M STRATEGIC VENTURE CAPITAL FUND Investing in and accompanying innovative start-ups Sodexo Supporting the Group’s long-term investment strategy Ventures Creating value for clients and consumers by combining the agility and creativity of start-ups with the Group’s investment
Slide 14: Corporate Responsibility Commitment Recognized Internally
OUR CORPORATE RESPONSIBILITY COMMITMENT IS CONFIRMED AND RECOGNIZED INTERNALLY 2016 employee engagement: 68% +20pts since 2008 68% 59% 57% 55% 48% 2008 2010 2012 2014 2016 A 100% online survey Over 211 500 employees completed the survey 21 entities achieved Aon Hewitt Best Employer Certification 88%
Slide 15: Corporate Responsibility Commitment Recognized Externally
OUR CORPORATE RESPONSIBILITY COMMITMENT IS CONFIRMED AND RECOGNIZED EXTERNALLY Industry Leader of the Dow Jones Sustainability Index for the 12th consecutive year Clinton Global Initiative Awarded CEO Leadership award by United Nations Women Empowerment Principles Carbon emissions reduction by 34% b
Slide 16: Corporate Responsibility Commitment Active in Daily Life
OUR CORPORATE RESPONSIBILITY COMMITMENT IS ACTIVE IN DAILY LIFE Founding Member of the International Food Waste Coalition Maximum Score Sodexo Awarded on World Wildlife Fund Palm Oil Buyers Scorecard Partnership for a Sustainable Healthier America Sea Food 16 – Fiscal 2016 Results - November 17, 201
Slide 17: Fiscal 2016 Performance
FISCAL 2016 PERFORMANCE 17 – Fiscal 2016 Results - November 17, 2016
Slide 18: Growth Despite Remote Sites Decline
GROWTH DESPITE REMOTE SITES DECLINE Revenue growth +2.2% Currency effect Scope changes -0.4% +0.1% Organic growth* +2.5% (+4% excluding Remote Sites) of which: On-site Services Benefits and Rewards Services +2.4% +4.7% 18 – Fiscal 2016 Results - November 17, 2016
Slide 19: Solid Improvement in Operating Performance
SOLID IMPROVEMENT IN OPERATING PERFORMANCE +30 bps EXCLUDING CURRENCY EFFECT* 6.1% At constant exchange rates* 5.9% At current exchange rates Operating margin 5.8% Before exceptional expenses* 1,203 € millions 1,143 +8.2% Operating profit Before exceptional expenses* EXCLUDING CURRENCY EFFECT* Fisca
Slide 20: Positive Momentum in Operating Performance Over Past 2 Years
POSITIVE MOMENTUM IN OPERATING PERFORMANCE OVER PAST 2 YEARS Operating margin +70 bps +50 bps EXCLUDING AT CURRENT Before exceptional CURRENCY RATES expenses* EFFECT * 5.9% 5.4% 1,203 € millions +24.5% Operating profit 966 IN 2 YEARS Before exceptional expenses* Fiscal 2014 Fiscal 2016 20 – Fiscal 2
Slide 21: Adaptation Program Delivering
ADAPTATION PROGRAM DELIVERING OBJECTIVES Faster alignment of on-site operating expenses Organizational simplification Increased international pooling of resources 200m€ of annual cost savings by Fiscal 2018 ACHIEVEMENTS €108m of exceptional expenses* booked in Fiscal 2016 €32m of cost reduction achi
Slide 22: Solid Performance in the P&L
SOLID PERFORMANCE IN THE P&L Fiscal 2016 Fiscal 2015 CHANGE At current Excluding € millions exchange rates currency effect* Revenues 20,245 19,815 +2.2% +2.6% Operating profit 1,203 1,143 +5.2% +8.2% before exceptional expenses* Operating margin 5.9% 5.8% +10 bps +30 bps before exceptional expenses*
Slide 23: EPS Benefits from Share Repurchases
EPS BENEFITS FROM SHARE REPURCHASES Group net profit Earnings per share +3.0% +3.7% €4.77 €700m €721m €4.60 €637m €4.21 Fiscal Fiscal Fiscal 2016 Fiscal Fiscal Fiscal 2016 2015 2016 Before 2015 2016 Before non-recurring non-recurring Reported items* Reported items* 23 – Fiscal 2016 Results - Novembe
Slide 24: Debt Restructuring to Reduce Finance Costs
DEBT RESTRUCTURING TO REDUCE FINANCE COSTS OBJECTIVES Increase maturity Significantly reduce interest costs ACHIEVEMENTS Early reimbursement of $316m1 of US debt at an average rate of 5.0% Indemnity of $23m in Fiscal 2016 and $12m in Fiscal 2017 Total interest saved over next seven years of $53m Iss
Slide 25: Strong Cash Flow Despite Rio Tinto and Rugby Contracts
STRONG CASH FLOW DESPITE RIO TINTO AND RUGBY CONTRACTS € millions Fiscal Fiscal 2016 2015 Operating cash flow 1,019 973 Change in working capital1 (74) 44 Net cash provided by operating activities 945 1,017 Net capital expenditure (398) (353) Change in financial assets 48 24 related to the Benefits
Slide 26: Strategic Use of Cash
STRATEGIC USE OF CASH ~ 1/3 CAPEX, for the right clients at the right terms ~ 1/3 M&A ~ 1/3 Dividend Payout ratio ~ 50% TARGET NET DEBT/EBITDA BETWEEN 1 AND 2 YEARS MAINTAIN STRONG INVESTMENT RATING 26 – Fiscal 2016 Results - November 17, 2016
Slide 27: Solid Balance Sheet
SOLID BALANCE SHEET ROBUST RATIOS € millions Aug. 31, Aug. 31, Aug. 31, Aug. 31, 2016 2015 2016 2015 Non-current assets 7,498 7,334 Shareholders’ equity 3,668 3,710 Current assets 4,486 4,396 Non-controlling interests 34 34 excluding cash Financial assets related 799 739 Non-current liabilities 3,54
Slide 28: Proposed Enhanced Shareholder Distribution
PROPOSED ENHANCED SHAREHOLDER DISTRIBUTION DIVIDEND SHARE BUY-BACKS Payout Payout 2.2% ~1.9% 48% 57%2 of capital of capital As per August 31 2016 +9.1% €2.20 €2.401 300m€ 300m€ Fiscal 2015 Fiscal 2016 2016 2017 Payout ratio target: ~ 50% Given low M&A activity in the past 3 years Payment date: Febru
Slide 29: A Regular Increase in the Dividend
A REGULAR INCREASE IN THE DIVIDEND Earnings per share Dividend per share €2.401 €4.60 €4.21 €2.20 €1.80 €3.23 +30% +33% in 2 years in 2 years Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 2014 2015 2016 2014 2015 2016 1 To be proposed at the AGM on January 24,2017 29 – Fiscal 2016 Results - November 17,
Slide 30: A Regular Payout Ratio
A REGULAR PAYOUT RATIO Dividend (€) & Payout ratio (%) 3€ 57% 60% 56% 52% 52% 50% 51% 48% 49% 56% 46% 2,40 € 50% 2,20 € 2€ 1,80 € 40% 1,59 € 1,62 € 1,46 € 1,35 € 30% 1,27 € 1,27 € 1,15 € 1€ 20% 10% 0€ 0% FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Fiscal 2016 payo
Slide 31: On-Site Services
ON-SITE SERVICES 31 – Fiscal 2016 Results - November 17, 2016
Slide 32: On-Site Services: +2.4% Organic Growth
ON-SITE SERVICES +2.4% ORGANIC GROWTH*, +4% excluding Remote Sites United Kingdom and Ireland Continental North +11.3% +1.0% Europe America +3.8% +5.3% excluding Rugby Rest of -3.2% the World +7.0% excluding Remote Sites 32 – Fiscal 2016 Results - November 17, 2016
Slide 33: +4% Organic Growth Excluding Remote Sites
ON-SITE SERVICES +4% ORGANIC GROWTH* EXCLUDING REMOTE SITES organic growth* Corporate +2.4% 51% Rugby World Cup contribution Ramp-up of integrated service contracts, in North America and the United Kingdom +5.8% Excluding Steep decline in Remote Sites, Remote Sites although stabilizing Health Care a
Slide 34: Growth Indicators
ON-SITE SERVICES GROWTH INDICATORS Client retention Comparable Business unit growth development 93.1% 93.1% 7.5% 7.2% 2.2% 2.1% Fiscal 2015 Fiscal 2016 Fiscal 2015 Fiscal 2016 Fiscal 2015 Fiscal 2016 34 – Fiscal 2016 Results - November 17, 2016
Slide 35: North America Revenues
ON-SITE SERVICES 45% of NORTH AMERICA On-site Fiscal 2016 Revenues Corporate +7.1% 26% New contract wins € millions Favorable currency Organic effect 8,629 Good cross-selling of Facilities growth Acquisitions 7,972 Management services Health Care and Seniors +4.9% 37% Ramp-up of contracts +3.8% Stro
Slide 36: North America Operating Profit
ON-SITE SERVICES NORTH AMERICA € millions Operating profit +30 bps 6.6% 6.3% 568 499 +9.3% Significant reduction of SG&A CHANGE EXCLUDING Strong contract management CURRENCY and cost control EFFECT* Fiscal 2015 FY 2015 Fiscal 2016 FY 2016 Operating margin * 36 – Fiscal 2016 Results - November 17, 20
Slide 37: Continental Europe Revenues
ON-SITE SERVICES 29% of CONTINENTAL EUROPE On-site Fiscal 2016 Revenues Corporate +1.7% 61% Strong growth in Russia, Turkey and Germany € millions Difficult situation in France, Organic especially in Q4 5,686 growth Acquisitions 5,690 Unfavorable currency effect Health Care and Seniors -1.3% +1.0% 2
Slide 38: Continental Europe Operating Profit
ON-SITE SERVICES CONTINENTAL EUROPE Operating profit € millions +70 bps 4.9% 4.2% Productivity gains at existing sites 281 Efficient management of food costs 238 +18.4% Ongoing effect of selective approach CHANGE to contracts EXCLUDING CURRENCY EFFECT* Fiscal FY 2015 2015 Fiscal FY 2016 2016 Operati
Slide 39: United Kingdom and Ireland Revenues
ON-SITE SERVICES 10% of UNITED KINGDOM AND IRELAND On-site Fiscal 2016 Revenues Corporate +14.2% 74% € millions Contribution of Rugby World Cup Organic growth 2,008 (€131m in Q1, +8.3% to organic growth) Acquisitions 1,832 Other Unfavorable Rest of Corporate growing at +5.9% Rugby currency thanks to
Slide 40: United Kingdom and Ireland Operating Profit
ON-SITE SERVICES UNITED KINGDOM AND IRELAND Operating profit € millions 6.8% +170 bps 5.1% 137 Focus on operational profitability 94 +50.4% Efficiency gains on overheads CHANGE EXCLUDING CURRENCY Contribution of Rugby World Cup EFFECT* Fiscal 2015 FY 2015 Fiscal 2016 FY 2016 Operating margin * 40 –
Slide 41: Rest of the World Revenues
ON-SITE SERVICES 16% of REST OF THE WORLD1 On-site Fiscal 2016 Revenues Corporate -4.9% € millions 88% 16% decline in Remote Sites, with solid Organic 3,504 growth Acquisitions underlying growth on rest of activity 3,143 Strong business development Unfavorable currency effect +7.0% Health Care and S
Slide 42: Rest of the World Operating Profit
ON-SITE SERVICES REST OF THE WORLD € millions Operating profit 4.6% -150 bps Exit costs in South America mining contracts 3.1% 161 Investment in the technical platform in Asia -38.6% CHANGE Significant operating cost reductions EXCLUDING 96 but insufficient to offset Remote Sites CURRENCY EFFECT* vo
Slide 43: Benefits and Rewards Services
BENEFITS AND REWARDS SERVICES 43 – Fiscal 2016 Results - November 17, 2016
Slide 44: Issue Volume and Revenues
BENEFITS AND REWARDS SERVICES ISSUE VOLUME AND REVENUES Issue volume* Revenues € billions € millions Organic growth Acquisitions 16.4 16.3 Organic 827 growth Acquisitions Unfavorable 780 currency effect Unfavorable currency effect +6.9% +4.7% ORGANIC ORGANIC GROWTH* GROWTH* Fiscal 2015 Fiscal 2016 F
Slide 45: Issue Volume and Revenues: Latin America
BENEFITS AND REWARDS SERVICES ISSUE VOLUME AND REVENUES Latin America € billions Issue volume* € millions Revenues 48% Fiscal 2016 Organic Organic growth Acquisitions growth Acquisitions 7.5 431 376 6.7 Unfavorable currency Unfavorable effect currency effect +7.8% +6.1% ORGANIC ORGANIC GROWTH* GROWT
Slide 46: Issue Volume and Revenues: Europe and Asia
BENEFITS AND REWARDS SERVICES ISSUE VOLUME AND REVENUES Europe and Asia € billions Issue volume* € millions Revenues 52% Fiscal 2016 Organic Acquisitions Organic 9.6 396 growth Acquisitions 404 growth 8.9 Unfavorable Unfavorable currency currency effect effect +6.2% +3.1% ORGANIC ORGANIC GROWTH* GRO
Slide 47: Operating Profit
BENEFITS AND REWARDS SERVICES OPERATING PROFIT € millions Operating profit + 110 bps Excluding currency effect * 35.6% at constant 34.5% rates 33.6% Change at current rates excluding currency effect 285 Negative impact of exchange rates 262 (mainly BRL) Unfavorable currency effect Tight control of o
Slide 48: New Segment Reporting
NEW SEGMENT REPORTING 48 – Fiscal 2016 Results - November 17, 2016
Slide 49: Reminder: Evolution of the Organization Since September 1, 2015
NEW SEGMENT REPORTING REMINDER: EVOLUTION OF THE ORGANIZATION SINCE SEPTEMBER 1, 2015 ON-SITE GLOBAL BUSINESS & EDUCATION HEALTH ADMINISTRATIONS CARE & SENIORS CORPORATE ENERGY & GOVERNMENT SPORTS & HEALTH CARE SCHOOLS UNIVERSITIES SERVICES RESOURCES & AGENCIES LEISURE & SENIORS SERVICE OPERATIONS T
Slide 50: Meeting on January 12 in London (Q1 Fiscal 2017)
NEW SEGMENT REPORTING MEETING ON JANUARY 12, IN LONDON (Q1 FISCAL 2017) Provide Fiscal 2016 comparative quarterly sales and interim results New format starting Q1 2017 FISCAL 2016 REVENUES On-Site revenues split by 3 Segments: BREAKDOWN BY SEGMENTS • Business & Administrations: • Health Care & Senio
Slide 51: Outlook
OUTLOOK 51 – Fiscal 2016 Results - November 17, 2016
Slide 52: Confidence in Outlook for Fiscal 2017
CONFIDENCE IN OUTLOOK FOR FISCAL 2017 REVENUE GROWTH: Segmentation boosting Stabilization geographic and facilities US Education will benefit in Remote Sites sector Easier comparative management contract from Schools and strong base in France extensions, white space new business new business develop
Slide 53: Fiscal 2017 Objectives
FISCAL 2017 OBJECTIVES Despite challenging revenue comparables in first half, the Group is confident in achieving the following Fiscal 2017 objectives: Organic revenue growth* of around 3 % Growth in operating profit between 8 and 9 % (excluding currency effect and exceptional items related to the A
Slide 54: Medium-Term Objectives
MEDIUM-TERM OBJECTIVES The Group maintains its medium-term objectives: average annual growth average annual growth in in revenue between 4% and 7% operating profit of between 8% (excluding currency effect) and 10% (excluding currency effect) 54 – Fiscal 2016 Results - November 17, 2016
Slide 55: Our Major Strengths
OUR MAJOR STRENGTHS A unique range of Significant Quality of Life Services Independence market particularly well aligned potential with evolving client demand A robust Undisputed A global network financial model A strong culture leadership in covering that allows Sodexo and engaged developing 80 cou
Slide 56: Alternative Performance Measure Definitions
ALTERNATIVE PERFORMANCE MEASURE DEFINITIONS 56 – Fiscal 2016 Results - November 17, 2016
Slide 57: Alternative Performance Measure Definitions
ALTERNATIVE PERFORMANCE MEASURE DEFINITIONS Financial Ratios Definitions Fiscal 2016 Fiscal 2015 Borrowings1 - operating cash2 Gearing ratio 11% 9% Shareholders’ equity and non-controlling interests Borrowings1 - operating cash2 Net debt ratio Earnings before Interest, Taxes, 0.3 0.2 Depreciation an
Slide 58: Financial Ratios Reconciliation
ALTERNATIVE PERFORMANCE MEASURE DEFINITIONS Financial Ratios reconciliation Fiscal 2016 Fiscal 2015 Non-current borrowings 2,515 2,765 + current borrowings excluding overdrafts 43 320 (1) Borrowings - derivative financial instruments recognized as assets (5) (38) 2,553 3,047 Cash and cash equivalent
Slide 59: Alternative Performance Measure Definitions
ALTERNATIVE PERFORMANCE MEASURE DEFINITIONS Exceptional expenses Exceptional expenses are the costs of implementation of the Adaptation and Simplification program and Operational Efficiency Program (€108m in Fiscal 2016, €0m in Fiscal 2015 and €27m in Fiscal 2014). Free cash flow Please refer to sli
Slide 60: Alternative Performance Measure Definitions
ALTERNATIVE PERFORMANCE MEASURE DEFINITIONS Non-recurring items Fiscal 2016 exceptional expenses of €108m related to the Adaptation and Simplification program in operating profit and €21m of early debt reimbursement indemnity in financial expense, both net of taxes (respectively €71m and €13m). Ther
Slide 61: Alternative Performance Measure Definitions
ALTERNATIVE PERFORMANCE MEASURE DEFINITIONS 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 year; and
Slide 62: Q&A
Q&A 62 – Fiscal 2016 Results - November 17, 2016
Slide 63: Appendices
APPENDICES 1. Regular and Sustained performance 2. Revenue growth 3. Fiscal 2016 revenue split 4. Gross financial debt 5. Refinancing in Sep and October 2016 6. Nov’15 €300M share repurchase program completed 7. Financial ratios 8. Fiscal 2016 exchange rates and sensitivity 9. Fiscal 2016 share perf
Slide 64: Sodexo: Regular and Sustained Performance
APPENDIX 1 SODEXO: REGULAR AND SUSTAINED PERFORMANCE Revenues (in € millions) 1 200 Operating Profit (in € millions) 20 000 +4.7% CAGR over 10 years +6.1% CAGR over 10 years 1 000 15 000 800 600 10 000 400 5 000 200 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012
Slide 65: Sodexo: Regular and Sustained Performance
APPENDIX 1 SODEXO: REGULAR AND SUSTAINED PERFORMANCE 5 EPS (in €) 5 Dividend (in €) 4,5 4,5 +7.4% CAGR over 10 years +8.5% CAGR over 10 years 4 4 3,5 3,5 3 3 2,5 2,5 2 2 1,5 1,5 1 1 0,5 0,5 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 65 –Fi
Slide 66: Revenue Growth
APPENDIX 2 REVENUE GROWTH € millions +2.5% +0.1% Organic growth* Acquisitions -0.4% 20,245 19,815 Unfavorable currency effect +2.2% TOTAL GROWTH Fiscal 2015 Fiscal 2016 66 – Fiscal 2016 Results - November 17, 2016
Slide 67: Fiscal 2016 Revenue Split
APPENDIX 3 FISCAL 2016 REVENUE SPLIT Revenue Distribution by activity and client segment by geographic region On-site Services 96% 31% Corporate North Continental America Europe 7% Remote Sites 4% Defense 43% 30% 4% Sports and Leisure 3% Justice Services 19% Health Care 6% Seniors 22% Education Unit
Slide 68: Gross Financial Debt €2,553 million
APPENDIX 4 GROSS FINANCIAL DEBT €2,553 million AS OF AUGUST 31, 2016 € millions BY CURRENCY BY MATURITY 41% € < 1 year 43 3% other 1-2 years 178 56% $ 2-3 years 139 INTEREST RATE 3-4 years 0 0.1% Variable 99.9% 4-5 years 292 Fixed Average interest rate 3.2 % > 5 years 1,901 at August 31, 2016 (vs. 3
Slide 69: Refinancing in September and October 2016
APPENDIX 5 REFINANCING IN SEPTEMBER AND OCTOBER 2016 Recent financing operations: August 2016: $208m (~ €184m) early USPP repayment September 2016: $108m (~ €97m) early USPP repayment October 2016: €600m bond issue at a yield of 0.88% with a maturity of 10½ years (April 2027) Gross debt pro forma af
Slide 70: Gross Financial Debt €3,056 million
APPENDIX 5 GROSS FINANCIAL DEBT €3,056 million PROFORMA AS OF AUGUST 31, 2016 FOLLOWING REFINANCING IN SEP-OCT 16 € millions BY CURRENCY BY MATURITY 54% € < 1 year 43 2% other 44% $ 1-2 years 138 2-3 years 139 INTEREST RATE 3-4 years 0 0.1% Variable 99.9% 4-5 years 255 Fixed > 5 years 2,481 Pro form
Slide 71: Nov'15 Share Repurchase Program Completed
APPENDIX 6 NOV’15 SHARE REPURCHASE PROGRAM COMPLETED Cancellation of 3,390,886 shares corresponding to a value of 300 million euro and 2.2% of capital, approved at the Board Meeting of June 14, 2016 Company’s share capital After Before Company’s share capital, number of shares 153,741,139 157,132,02
Slide 72: Financial Ratios
APPENDIX 7 FINANCIAL RATIOS Cash conversion ROCE* Free cash flow/Net profit Operating profit after tax/ Capital employed 130% 19.7% 18.6% 120% 123% 17.2% 17.1% 98% 93% 15.4% objective ~ 100% Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015 Fiscal 2016 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015 F
Slide 73: Financial Ratios
APPENDIX 7 FINANCIAL RATIOS Gearing ratio* Net debt ratio* Net debt/Shareholders' equity Net debt/EBITDA objective < 75% objective between 1 and 2 years 21% 16% 0.5 12% 11% 0.4 9% 0.3 0.3 0.2 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015 Fiscal 2016 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015
Slide 74: Financial Ratios
APPENDIX 7 FINANCIAL RATIOS Interest cover* Reimbursement capacity* Operating profit/ Gross financial debt/ Net borrowing costs Operating cash flow 12.6 4.1 objective < 4 years 9.0 3.43,4 3.1 2.8 6.6 2.5 6.0 5.4 objective > 5 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015 Fiscal 2016 Fiscal 2012 Fi
Slide 75: Fiscal 2016 Exchange Rates and Sensitivity
APPENDIX 8 FISCAL 2016 - EXCHANGE RATES AND SENSITIVITY € millions Impact of a 10% appreciation of the exchange rate of the following currencies against the euro on Average Closing rate €1 = rate Aug. 31, Operating Shareholders’ Fiscal 2016 Change 2016 Change Revenues profit equity U.S. dollar 1,106
Slide 76: Fiscal 2016 Share Performance Sodexo vs. CAC 40
APPENDIX 9 FISCAL 2016 SHARE PERFORMANCE SODEXO VS. CAC 40 . Cours de l'action Sodexo en Euros du 1er septembre 2015 au 31 août 2016 110,00 +32.4% (103.85 €) 105,00 100,00 95,00 90,00 85,00 - 4.6% 80,00 (4,438 points ) 75,00 70,00 65,00 60,00 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Aug-16 SODEXO S
Slide 77: Fiscal 2017 Financial Calendar
APPENDIX 10 FISCAL 2017 FINANCIAL CALENDAR First quarter revenues, Fiscal 2017 January 12, 2017 Annual Shareholders’ Meeting 2017 January 24, 2017 Dividend Ex-date February 6, 2017 Dividend Record date February 7, 2017 Payment of dividend February 8, 2017 Half-year results, Fiscal 2017 April 13, 201
Slide 78: Sodexo: Key Facts
APPENDIX 11 SODEXO: KEY FACTS Founded in 1966 by Pierre Bellon €20.2 bn Revenues Main Shareholders as 31/08/2016: > Bellon S.A 39.6% of capital (54.8% of voting rights) > International Institutional investors 38.3% 425,000 employees 19th largest employer worldwide Strong Investment Grade Rating S&P