Sodexo Sa · EURONEXT:SW
Sodexo Sa — Q1 2014 Earnings Presentation
26 slides from Sodexo Sa's earnings presentation, Jan 8, 2014
Slide 1: First Quarter Fiscal 2014 Revenues
FIRST QUARTER FISCAL 2014 REVENUES January 8, 2014
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains statements that may be considered 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 we assume no obligation to update the
Slide 3: Agenda
AGENDA 1. FIRST QUARTER FISCAL 2014 REVENUES 2. ON-SITE SERVICES 3. BENEFITS AND REWARDS SERVICES 4. OUTLOOK 3 – Q1 Fiscal 2014 revenues, January 8, 2014
Slide 4: First Quarter Fiscal 2014 Revenues
1 FIRST QUARTER FISCAL 2014 REVENUES 4 – Q1 Fiscal 2014 revenues, January 8, 2014
Slide 5: In Brief: Quality of Life Services
IN BRIEF Expertise and a deep understanding of client needs, thanks to an approach by client segment and sub-segment A client-responsive Relevant integrated service offers including “Quality of Life Services” “hard” facilities management strategy Leadership in emerging markets • In On-site Ser
Slide 6: First Quarter Fiscal 2014 Revenues
FIRST QUARTER FISCAL 2014 REVENUES ■ Organic revenue growth + 2.7% On-site Services + 2.2% Benefits and Rewards Services + 12.3% ■ Unfavorable currency effect - 4.9% No operational risk, since each subsidiary’s revenues and expenses are in the same currency 6 – Q1 Fiscal 2014 revenues, January 8, 20
Slide 7: Revenue Growth
REVENUE GROWTH € millions +2.7% Organic growth +0.3% Acquisitions 4,950 4,856 -4.9% Unfavorable currency effect -1.9% OVERALL GROWTH Q1 Fiscal 2013 Q1 Fiscal 2014 7 – Q1 Fiscal 2014 revenues, January 8, 2014
Slide 8: Quality of Life Services Contract Wins
QUALITY OF LIFE SERVICES CONTRACT WINS CORPORATE Carlsberg in Europe Foodservices, Hard and Soft FM Services at 35 sites in 10 countries HEALTHCARE AND SENIORS Georgian Village in Canada Construction and maintenance, environmental services, foodservices EDUCATION George Mason University in the Unite
Slide 9: On-site Services
2 ON-SITE SERVICES 9 – Q1 Fiscal 2014 revenues, January 8, 2014
Slide 10: On-site Services: Organic Growth +2.2%
ON-SITE SERVICES ORGANIC GROWTH +2.2% North America United Kingdom and Ireland +5.1% +0.4% Continental Europe +0.5% Rest of World -0.2% 10 – Q1 Fiscal 2014 revenues, January 8, 2014
Slide 11: Organic Growth by Client Segment
ON-SITE SERVICES ORGANIC GROWTH BY CLIENT SEGMENT Corporate +1.2% Successful Quality of Life Services offers in Corporate +3.8% Lower demand in Remote Sites segment -3.8% Healthcare and Seniors Contribution of new contracts in North America +3.4% Education Improved growth in comparable unit
Slide 12: North America
ON-SITE SERVICES NORTH AMERICA € millions Revenues Corporate +9.3% Organic growth Positive effect of new Quality of 1,935 1,935 Life integrated services contracts Unfavorable currency effect Remote Sites development in Canada +5.1% Healthcare and Seniors +3.0% ORGANIC Gradual ramp-up of contra
Slide 13: Continental Europe
ON-SITE SERVICES CONTINENTAL EUROPE € millions Revenues Corporate +0.6% 1,517 Organic growth Acquisitions 1,525 Facilities management contracts Unfavorable offset lower foodservices volumes currency effect Strong pricing pressure from clients seeking cost savings +0.5% ORGANIC GROWTH Healthcare
Slide 14: Rest of World
ON-SITE SERVICES REST OF WORLD € millions Revenues Corporate -1.4% 949 Organic growth Acquisitions Sharp slowdown in Remote Sites (end of projects and limited contract -8.4% 853 wins) Unfavorable currency effect Growth maintained in Corporate +7.8% in most emerging markets -0.2% VARIATION* Healt
Slide 15: United Kingdom and Ireland
ON-SITE SERVICES UNITED KINGDOM AND IRELAND € millions Revenues Organic -1.0% 369 growth Corporate 353 Unfavorable Ramp-up of integrated services currency contracts effect Contribution of Paralympic Games to Q1 Fiscal 2013 +0.4% Healthcare and Seniors +11.1% ORGANIC GROWTH Facilities managemen
Slide 16: Benefits and Rewards Services
3 BENEFITS AND REWARDS SERVICES 16 – Q1 Fiscal 2014 revenues, January 8, 2014
Slide 17: Issue Volume
BENEFITS AND REWARDS SERVICES ISSUE VOLUME € billions Organic Acquisitions growth 4.2 3.9 Unfavorable currency effect +11.3% ORGANIC GROWTH Q1 Fiscal Q1 Fiscal 2013 2014 17 – Q1 Fiscal 2014 revenues, January 8, 2014
Slide 18: Issue Volume by Region
BENEFITS AND REWARDS SERVICES ISSUE VOLUME BY REGION € billions Latin America Europe and Asia Organic Acquisitions growth Organic growth Acquisitions 2.2 2.1 2.0 Unfavorable currency Unfavorable effect 1.9 currency effect +20.3% +3.3% ORGANIC ORGANIC GROWTH GROWTH Q1 Fiscal Q1 Fiscal Q1 Fiscal Q1 Fi
Slide 19: Revenues
BENEFITS AND REWARDS SERVICES REVENUES € millions Organic Acquisitions growth 191 183 Unfavorable currency effect +12.3% ORGANIC GROWTH Q1 Fiscal Q1 Fiscal 2013 2014 19 – Q1 Fiscal 2014 revenues, January 8, 2014
Slide 20: Revenues by Region
BENEFITS AND REWARDS SERVICES REVENUES BY REGION € millions Latin America Europe and Asia Organic Organic 83 growth Acquisitions 82 growth Acquisitions Unfavorable 109 currency effect 100 Unfavorable currency effect +21.2% +1.5% ORGANIC ORGANIC GROWTH GROWTH Q1 Fiscal Q1 Fiscal Q1 Fiscal Q1 Fiscal 2
Slide 21: Outlook
4 OUTLOOK 21 – Q1 Fiscal 2014 revenues, January 8, 2014
Slide 22: Fiscal 2014 Objectives
OUTLOOK FISCAL 2014 OBJECTIVES Organic revenue growth between +2.5% and +3% Around 11%* growth in operating profit * At constant exchange rates and excluding exceptional costs of implementation of operational efficiency improvement and cost reduction program 22 – Q1 Fiscal 2014 revenues, January 8,
Slide 23: Growth Strategy
OUTLOOK 2012-2013 EN BREF GROWTH STRATEGY Unique Quality of Life Services Sodexo’s teams are positioning and offer confident and fully mobilized to meet the Operational efficiency improvement target of achieving 6% program operating margin Sustained investment by Fiscal 2015 23 – Q1 Fiscal 201
Slide 24: Thank You!
THANK YOU! 24 – Q1 Fiscal 2014 revenues, January 8, 2014
Slide 25: Questions & Answers
Questions & Answers 25 – Q1 Fiscal 2014 revenues, January 8, 2014
Slide 26: Exchange Rates Impact
APPENDICE EXCHANGE RATES IMPACT Average rate Average rate Revenue impact 1 EUR = Change Q1 Fiscal 2014 Q1 Fiscal 2013 (millions of euro) US dollar 1.3522 1.2906 -4.6% (89) British pound sterling 0.8431 0.8025 -4.8% (18) Brazilian real 3.0562 2.6398 -13.6% (43) Bolivar fuerte 13.8832 13.2457 -4.6% (1