Sodexo Sa · EURONEXT:SW

Sodexo Sa — H1 2024 Earnings Presentation

46 slides from Sodexo Sa's earnings presentation, Apr 19, 2024

Slide 1: First half Fiscal 2024 results
First half Fiscal 2024 results April 19, 2024
Slide 2: Summary
Summary 01 H1 Fiscal 2024 highlights 02 Financial performance 03 Review of Operations 04 Outlook 05 Figures have been prepared in thousands Q&A of euro and published in millions of euro 06 Please refer to Appendix 14 for Alternative Appendices Performance Measure definitions First half Fiscal 2024 r
Slide 4: An active first half
01 First-half Fiscal 2024 highlights An active first half Effective spin-off and listing of Pluxee on Feb 1, 2024 • Sodexo has become a pure Food and FM player with exciting profitable growth opportunities Solid H1 performance • Steady progress in net new wins Execution moving at pace • Strong incre
Slide 5: Solid H1 performance supported by strong operational execution
01 First-half Fiscal 2024 highlights Solid H1 performance supported by strong operational execution Strong H1 Organic Growth Food Organic Growth FM Organic Growth +8.5% +8.9% Q2 OG +10.7% +4.5% UOP margin progress Net new signings Client Retention 5.1% 2.4% 95.5% LTM (1) LTM (1) +40bps vs LY +20bps
Slide 6: Solid commercial momentum
01 First-half Fiscal 2024 highlights Solid commercial momentum Record Client Development below range Steady progress in Retention due to phasing Net new signings LTM (1) LTM (1) LTM (1) 95.2% 95.5% 94.2% 7.5% 7.0% 6.8% 2.2% 2.4% 1.7% H1'23 FY'23 H1'24 H1'23 FY'23 H1'24 H1'23 FY'23 H1'24 (1) Annualiz
Slide 7: Continuous positive momentum in Net new business in H1
01 First-half Fiscal 2024 highlights Continuous positive momentum in Net new business in H1 North America Europe Rest of the World American Airlines Clariane The Heineken company Multi-year contract win Procurement & Advisory Food services 4-years contract in 19 sites for 23 lounges in the U.S. cont
Slide 8: Low-carbon meals: Supporting our client's ambition to decrease carbon emissions
01 First-half Fiscal 2024 highlights Low-carbon meals: Supporting our client’s ambition to decrease carbon emissions • 15-year contract recently renewed • 11 sites / around 15,000 meals each day • 2019: implementation of the “Meatless Mondays” • 2022: plant-based dishes established as primary and de
Slide 9: Recognized impact on People & Planet
01 First-half Fiscal 2024 highlights Recognized impact on People & Planet First half Fiscal 2024 results - April 19, 2024 - © Sodexo 2024. All rights Reserved 9
Slide 11: P&L Performance – Continuing Operations
02 Financial performance 1. P&L Performance – Continuing Operations Pluxee classified as discontinued operations in accordance with IFRS 5, and prior period restated Change at Change at H1 2023 H1 2024 current constant In million € restated exchange rates exchange rates Revenues 12,101 11,581 +4.5%
Slide 12: Other income and expenses
02 Financial performance Other income and expenses Pluxee classified as discontinued operations in accordance with IFRS 5, and prior period restated In million € H1 2024 H1 2023 restated Net scope change impact (1) 83 1 Restructuring and rationalization costs (15) (8) Amortization of purchased intan
Slide 13: Revised definitions and post IFRS 16 metrics
02 Financial performance Revised definitions and post IFRS 16 metrics H1 2024 Previous Client Investments Sodexo Post IFRS 16 In million € IFRS 16 definitions amortization New definitions metrics Operating cash flow (1) 664 75 739 739 Net Capex (171) (75) (246) (246) Net Capex / Revenue 1.4% 2.0% 2.
Slide 14: Free cash flow – continuing operations
02 Financial performance Free cash flow – continuing operations Pluxee classified as discontinued operations in accordance with IFRS 5, and prior period restated In million € H1 2024 H1 2023 restated Operating cash flow(1)(2) 739 733 Change in working capital (513) (624) IFRS 16 Leases outflow (82)
Slide 15: Balance sheet as of February 29, 2024
02 Financial performance Balance sheet as of February 29, 2024 August 31, August 31, February 28, February 29, February 29, 2023 2023 2023 2024 2024 In million € (adjusted1) (adjusted1) (adjusted1) Non-current assets 9,470 9,406 Shareholders’ equity 4,413 4,542 Current assets excluding cash 4,672 4,
Slide 17: Solid Organic Revenue Growth at +8.5%
03 Review of Operations Solid Organic Revenue Growth at +8.5% Sodexo H1 Revenue North America +10.0% €12,101m +4.5% Currency effect Scope Change Europe +8.0% -3.3% -0.7% +7.2% excl. Rugby World Cup Organic growth +8.5% Rest of the World +5.7% +8.4% excl. Accounting change Food services FM services +
Slide 18: Inflationary pressure continued to come off in Q2
03 Review of Operations 3. 1. 3. 2. Inflationary pressure continued to come off in Q2 More favorable operating environment… ▬ Food inflation averaging low to mid-single digit • Continued downward trend in food inflation, primarily driven by progressive decline in Europe ▬ Labor inflation remains sta
Slide 19: North America revenue
03 Review of Operations North America revenue 46% of FY23 Revenues North America €5,756m +10.0% Business & Healthcare Sodexo Live! Education Administrations* & Seniors +13.2% +23.3% +7.0% +6.3% Restated Organic Growth Restated Organic Growth Restated Organic Growth Restated Organic Growth • Favorabl
Slide 20: Europe revenue
03 Review of Operations Europe revenue 36% of FY23 Revenues +7.2% excl. RWC Europe €4,254m +8.0% Business & Healthcare Sodexo Live! Education Administrations* & Seniors +12.5% +6.3% +25.4% excl. RWC +7.3% +7.8% Restated Organic Growth Restated Organic Growth Restated Organic Growth Restated Organic
Slide 21: Rest of the World revenue
03 Review of Operations Rest of the World revenue 18% of FY23 +8.4% Revenues excl. Accounting change Rest of the World €2,091m +5.7% Business & Healthcare Sodexo Live! Education Administrations* & Seniors +8.3% +5.1% excl. Accounting change x3 +10.5% +1.4% Restated Organic Growth Restated Organic Gr
Slide 22: UOP margin progressing
03 Review of Operations UOP margin progressing Difference Difference H1 24 H1 24 vs H1 23 vs H1 23 UOP UOP Margin Year-over-year UOP margin progress (excl. currency effect) (excl. currency effect) at +40 bps, driven by: North 395 +14.1% 6.9% +30 bps • “Sweet spot” on inflation, slightly America offs
Slide 24: Fiscal 2024 guidance
04 Outlook Fiscal 2024 guidance Organic Growth Now top of the +6% to +8% range UOP Margin Confirmed at +30 to +40 basis points at constant currencies Note: Fiscal 2025 guidance unchanged First half Fiscal 2024 results - April 19, 2024 - © Sodexo 2024. All rights Reserved 24
Slide 27: H1 Fiscal 2024 Revenue breakdown
06 Appendix 1 H1 Fiscal 2024 Revenue breakdown REVENUES BY REGION (in million euros) H1 2024 H1 2023 Organic Growth External Growth Currency Effect Total Growth North America 5,756 5,499 +10.0% -0.1% -5.2% +4.7% (1) Europe 4,254 4,027 +8.0% -1.7% -0.7% +5.6% (2) Rest of the World 2,091 2,055 +5.7% -
Slide 28: Q2 Fiscal 2024 Revenue breakdown
06 Appendix 2 Q2 Fiscal 2024 Revenue breakdown REVENUES BY REGION (in million euros) Q2 2024 Q2 2023 Organic Growth External Growth Currency Effect Total Growth North America 2,725 2,506 +11.4% -0.4% -2.3% +8.7% Europe 2,059 1,980 +6.7% -2.6% -0.1% +4.0% (1) Rest of the World 1,030 998 +6.7% -1.2% -
Slide 29: Group Net profit (including Discontinued Operations)
06 Appendix 3 Group Net profit (including Discontinued Operations) Pluxee classified as Discontinued Operations in accordance with IFRS 5, and prior period restated H1 2024 Net profit from Discontinued Operations amounts to -€570m, of which: H1 2023 H1 2024 In million € restated • €97m from Pluxee's
Slide 30: H1 Fiscal 2024 exchange rates
06 Appendix 4 H1 Fiscal 2024 exchange rates Average rate Closing rate Closing rate Closing rate Average rate Average rate H1 24 H1 24 FY 23 02/29/24 1€ = H1 24 H1 23 vs. H1 23 at 02/29/2024 at 08/31/2023 vs. 08/31/23 U.S. Dollar 1.082 1.031 -4.7% 1.083 1.087 +0.4% Pound Sterling 0.864 0.874 +1.2% 0.
Slide 31: Breakdown of Gross Financial debt: €4,760m
06 Appendix 5 Breakdown of Gross Financial debt: €4,760m (1) By currency By maturity 6% £ (in million €) 1% Other <1 48 Year 69% € 24% $ 1-3 1,672 Years Average maturity By interest rate 3-5 1,588 of 3.7 years Years at 02/29/2024 6% variable >5 1,452 94% Years fixed Blended cost of debt 1.9% at 29/0
Slide 32: Modelling details for FY2024
06 Appendix 6 Modelling details for FY2024 (At constant rates) Scope change effect on Other income Net financial Tax rate Fiscal 2024 revenues and expenses expenses c.22% ~ -1% ~ €-40m ~ €100m (including effect of Homecare capital gain) First half Fiscal 2024 results - April 19, 2024 - © Sodexo 2024
Slide 33: Revised definitions and post IFRS 16 metrics (Fiscal 2023)
06 Appendix 7 Revised definitions and post IFRS 16 metrics (Fiscal 2023) FY23 Previous Client Investments Sodexo New Post IFRS 16 In million € IFRS 16 definitions amortization definitions metrics Operating cash flow (1) 1,130 139 1,269 1,269 Net Capex -348 -139 -487 -487 Net Capex / Revenue 1.5% 2.2
Slide 34: Revised definitions and post IFRS 16 metrics (H1 Fiscal 2023)
06 Appendix 8 Revised definitions and post IFRS 16 metrics (H1 Fiscal 2023) H1 2023 Previous Client Investments Sodexo Post IFRS 16 In million € IFRS 16 definitions amortization New definitions metrics Operating cash flow (1) 668 65 733 733 Net Capex -182 -65 -247 -247 Net Capex / Revenue 1.6% 2.1%
Slide 35: Previous H1 reporting of commercial performance (6M YTD)
06 Appendix 9 Previous H1 reporting of commercial performance (6M YTD) Client Retention Business development 97.8% 98.1% 3.6% 3.4% H1 FY23 H1 FY24 H1 FY23 H1 FY24 = Annualized Revenue of contracts lost or signed in the first half, as a % of prior full year Revenue First half Fiscal 2024 results - Ap
Slide 36: New segment reporting following evolution of the On-site Services organization
06 Appendix 10 New segment reporting following evolution 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. Res
Slide 37: Number of shares
06 Appendix 11 Number of shares Company’s share capital FEBRUARY 29, 2024 AUGUST 31, 2023 FEBRUARY 28, 2023 Company’s share capital, number of shares 147,454,887 147,454,887 147,454,887 Treasury shares 784,371 1,084,126 1,473,046 Net number of shares 146,670,516 146,370,761 145,981,841 Number of sha
Slide 38: Revenue breakdown by significant countries
06 Appendix 12 Revenue breakdown by significant countries Revenue First half Fiscal 2024 Revenue First half Fiscal 2023 France France €1,424m €1,354m 12% 12% Other Other €5,200m €4,983m 43% 43% United States United States €5,477m €5,244m 45% 45% First half Fiscal 2024 results - April 19, 2024 - © So
Slide 39: Growth indicator definitions
06 Appendix 13 Growth indicator definitions Client Retention Business development Client retention rate is the percentage of prior fiscal year revenue retained Business development rate is the annualized estimated revenue for in this current fiscal year. It is derived by considering prior fiscal yea
Slide 40: Alternative Performance Measure - Definitions
06 Appendix 14a Alternative Performance Measure - Definitions Organic growth Underlying operating margin Organic growth corresponds to the increase in revenue for a given period Underlying operating profit margin corresponds to Underlying Operating profit (the "current period") compared to the reven
Slide 41: Alternative Performance Measure - Definitions
06 Appendix 14b Alternative Performance Measure - Definitions Blended cost of debt Net debt Blended cost of debt is calculated at period end and is the weighted blended of Net debt is defined as Group borrowing at the balance sheet date, financing rates on borrowings (including derivative financial
Slide 42: APM - Financial ratios definitions & reconciliation
06 Appendix 15 APM - Financial ratios definitions & reconciliation H1 Fiscal 2024 Restated H1 Fiscal 2023 Gross borrowings (1) – operating cash (2) Gearing ratio 75.7% 99.3% Shareholders’ equity and non-controlling interests Gross borrowings (1) – operating cash (2) Net debt ratio 2.3x 3.2x Rolling
Slide 43: Financial calendar
06 Appendix 16 Financial calendar July 2, 2024 October 24, 2024 December 17, 2024 Q3 Fiscal 2024 Fiscal 2024 Fiscal 2024 Results Annual Shareholders Revenues Meeting These dates are purely indicative and are subject to change without notice. Regular updates are available in the calendar on our websi
Slide 44: Sodexo Live! ID Card
06 Appendix 17 Sodexo Live! ID Card Convention & Conference Centers Our services Cultural Destinations Retail Retail Venue Sales food services merchandising Design & Space Catering & Travel & Hospitality management Hospitality Ticketing consultancy Stadia & Arenas Global Events Airport Lounges +200
Slide 45: Sodexo key figures
06 Appendix 18 Sodexo key figures As of August 31, 2023 ▬ Founded in 1966 by Pierre Bellon ▬ As at 08/31/2023, Bellon SA 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 mill
Slide 46: Investor relations contacts
06 Appendix 19 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 ESG Investor Relations Engagement Lead ▬ Juliette KLEIN ▬ Alina CAZACU Tel: + 33 1 57 75 80 27 Tel: + 33 1 57 75 83 11 juliet

Sodexo — H1 2024 Earnings Presentation on 6ix

Sodexo Sa — H1 2024 Earnings Presentation

Slide 1: First half Fiscal 2024 results

Slide 2: Summary

Slide 3: 1. First half Fiscal 2024 highlights

Slide 4: An active first half

Slide 5: Solid H1 performance supported by strong operational execution

Slide 6: Solid commercial momentum

Slide 7: Continuous positive momentum in Net new business in H1

Slide 8: Low-carbon meals: Supporting our client's ambition to decrease carbon emissions

Slide 9: Recognized impact on People & Planet

Slide 10: 2. Financial performance

Slide 11: P&L Performance – Continuing Operations

Slide 12: Other income and expenses

Slide 13: Revised definitions and post IFRS 16 metrics

Slide 14: Free cash flow – continuing operations

Slide 15: Balance sheet as of February 29, 2024

Slide 16: 3. Review of Operations

Slide 17: Solid Organic Revenue Growth at +8.5%

Slide 18: Inflationary pressure continued to come off in Q2

Slide 19: North America revenue

Slide 20: Europe revenue

Slide 21: Rest of the World revenue

Slide 22: UOP margin progressing

Slide 23: 4. Outlook

Slide 24: Fiscal 2024 guidance

Slide 25: 5. Q&A

Slide 26: 6. Appendices

Slide 27: H1 Fiscal 2024 Revenue breakdown

Slide 28: Q2 Fiscal 2024 Revenue breakdown

Slide 29: Group Net profit (including Discontinued Operations)

Slide 30: H1 Fiscal 2024 exchange rates

Slide 31: Breakdown of Gross Financial debt: €4,760m

Slide 32: Modelling details for FY2024

Slide 33: Revised definitions and post IFRS 16 metrics (Fiscal 2023)

Slide 34: Revised definitions and post IFRS 16 metrics (H1 Fiscal 2023)

Slide 35: Previous H1 reporting of commercial performance (6M YTD)

Slide 36: New segment reporting following evolution of the On-site Services organization

Slide 37: Number of shares

Slide 38: Revenue breakdown by significant countries

Slide 39: Growth indicator definitions

Slide 40: Alternative Performance Measure - Definitions

Slide 41: Alternative Performance Measure - Definitions

Slide 42: APM - Financial ratios definitions & reconciliation

Slide 43: Financial calendar

Slide 44: Sodexo Live! ID Card

Slide 45: Sodexo key figures

Slide 46: Investor relations contacts