Sodexo Sa · EURONEXT:SW
Sodexo Sa — Investor Presentation (January 2016)
67 slides from Sodexo Sa's investor presentation, January 2016
Slide 1: Sodexo Group Presentation
Sodexo Group Presentation January 2016
Slide 2: Agenda
A 1. SODEXO AT A GLANCE G 2. Q1 FISCAL 2016 REVENUES E 3. FISCAL 2015 SOLID FINANCIAL PERFORMANCE N 4. OUTLOOK 5. SHAREHOLDERS & INVESTOR D RELATIONS 6. APPENDICES A 2– Sodexo Overview, January 2016
Slide 3: Sodexo at a Glance
SODEXO AT A GLANCE 3 – Sodexo Overview, January 2016
Slide 4: Sodexo: Key Facts
SODEXO AT A GLANCE SODEXO: KEY FACTS Founded in 1966 by Pierre Bellon €19.8 bn Revenues Main Shareholders: Bellon S.A, 37.7% (53% of voting rights) 420,000 employees International Institutional investors, 41.9% 19th largest employer worldwide Strong 75 million consumers served daily Investment Grade
Slide 5: Our Major Strengths
SODEXO AT A GLANCE 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 engage
Slide 6: World Leader in Quality of Life Services
SODEXO AT A GLANCE WORLD LEADER IN QUALITY OF LIFE SERVICES An unrivaled array of services through 3 activities: ON-SITE BENEFITS AND PERSONAL AND SERVICES REWARDS SERVICES HOME SERVICES 8 client segments: 5 service categories: 3 service categories: Corporate Employee Benefits Childcare Remote Sites
Slide 7: Integrated Quality of Life Services Offer
SODEXO AT A GLANCE INTEGRATED QUALITY OF LIFE SERVICES OFFER 7 – Sodexo Overview, January 2016
Slide 8: Fiscal 2015 Revenue Distribution
SODEXO AT A GLANCE FISCAL 2015 REVENUE distribution Revenue Distribution by activity and client segment by geographic region On-site Services 96% 30% Corporate North Continental America Europe 9% Remote Sites 4% Defense 41% 31% 4% Sports and Leisure 4% Justice Services 18% Health Care 6% Seniors 21%
Slide 9: Sodexo's Value Proposition
SODEXO AT A GLANCE SODEXO’S VALUE PROPOSITION Maximizing value added with a unique and differentiating offer… DESIGN MANAGE DELIVER … adapted to client priorities : Increase people Enhance processes Improve infrastructure satisfaction, motivation quality, efficiency and equipment utilization, and ef
Slide 10: Key Growth Drivers
SODEXO AT A GLANCE KEY GROWTH DRIVERS OVERALL SEGMENT SPECIFIC A global economy in which capital, information, HEALTH CARE, SENIORS AND EDUCATION talents and trade are continuously interconnected Demographic change (population growth, Rapid urbanization and development of megacities life expectancy,
Slide 11: Sodexo: Regular and Sustained Performance
SODEXO AT A GLANCE SODEXO : REGULAR AND SUSTAINED PERFORMANCE +4.3% CAGR over 15 years +5.1% CAGR over 15 years +15.1% CAGR over 14 years +13.1% CAGR over 15 years 11 – Sodexo Overview, January 2016
Slide 12: Sodexo: Regular and Sustained Performance
SODEXO AT A GLANCE SODEXO : REGULAR AND SUSTAINED PERFORMANCE +14.2% CAGR over 15 years +9.6% CAGR over 15 years 12 – Sodexo Overview, January 2016
Slide 13: Benefits and Rewards: The Pass Cycle
SODEXO AT A GLANCE BENEFITS AND REWARDS: THE PASS CYCLE Payment of the value SODEXO PASS CLIENTS Delivery of the Pass Reimbursement Presentation Distribution of the value of the Pass for of the Pass reimbursement AFFILIATED MERCHANTS BENEFICIARIES Use of the Pass 13 – Sodexo Overview, January 2016
Slide 14: Sodexo's Development: Years of History
SODEXO AT A GLANCE SODEXO’S DEVELOPMENT - 50 years of history 1966 1983 2005 2016 Sodexo Michel Landel Sophie Bellon IPO of Sodexo on founded 1971 - 1978 becomes CEO, Chairwoman Paris stock exchange by Pierre International Pierre Bellon of the Board 1985 - 1993 remains Chairman of Directors Bellon e
Slide 15: Q1 Fiscal 2016 Revenues
Q1 FISCAL 2016 REVENUES 15 – Sodexo Overview, January 2016
Slide 16: Dynamic Growth in Line with Objective
Q1 16 DYNAMIC GROWTH IN LINE WITH OBJECTIVE Reported growth of +9.6% Currency effect Scope changes +4.8% +0.1% Organic growth of +4.7% of which: On-site Services Benefits and Rewards Services +4.7% +5.3% 16 – Sodexo Overview, January 2016
Slide 17: A Dynamic Quarter at +4.7% Organic Growth
Q1 16 A DYNAMIC QUARTER AT +4.7% ORGANIC GROWTH Half of the organic growth Acceleration in growth Further strong growth came from the €131m in Health Care and Seniors in the Corporate segment, Rugby World Cup contract in North America led by major new integrated services contracts (with Facilities M
Slide 18: Strong Demand for Our Quality of Life Services Offer
Q1 16 STRONG DEMAND FOR OUR QUALITY OF LIFE SERVICES OFFER CORPORATE Pfizer in 12 countries in Asia Alexion Pharmaceuticals in the United States SENIORS Korian Medica in France HEALTH CARE Carolinas HealthCare System in the United States Greater Baltimore Medical Center in the United States REMOTE S
Slide 19: Strong Demand for Integrated Quality of Life Offers
ON-SITE SERVICES Q1 16 STRONG DEMAND FOR INTEGRATED QUALITY OF LIFE OFFERS Organic growth Corporate Contribution of Rugby World Cup contract Strong momentum from integrated services +7.5% contracts won in 2015 However, significant decline in Remote Sites revenues Health Care and Seniors Acceleration
Slide 20: On-site Services Organic Growth of +4.7%
Q1 16 ON-SITE SERVICES ORGANIC GROWTH OF +4.7% United Kingdom and Ireland Continental North +47.6% +2.9% +1.0% Europe America +19.5% Rest of the World -4.2% 20 – Sodexo Overview, January 2016
Slide 21: North America
ON-SITE SERVICES Q1 16 NORTH AMERICA € millions Revenues Corporate +6.0% Favorable 26% Strong growth currency effect 2,434 in facilities management services Organic 2,082 growth Acquisitions Health Care +4.9% 36% and Seniors Start-up of new contracts +2.9% Successful commercial development ORGANIC G
Slide 22: Continental Europe
ON-SITE SERVICES Q1 16 CONTINENTAL EUROPE € millions Revenues Corporate +2.6% 61% Improved growth Organic Consolidation 1,513 growth scope 1,509 in integrated services contracts Unfavorable currency effect Health Care +1.0% and Seniors -5.0% 23% ORGANIC Contracts not renewed, GROWTH especially in Fr
Slide 23: Rest of the World
ON-SITE SERVICES Q1 16 REST OF THE WORLD* € millions Revenues Corporate -6.1% 90% A -16.1% decline 891 in Remote Sites revenues Organic growth 806 Corporate contract wins Unfavorable currency effect +6% Health Care -4.2% +23.5% excluding Remote Sites and Seniors 6% ORGANIC GROWTH Continued healthy d
Slide 24: United Kingdom and Ireland
ON-SITE SERVICES Q1 16 UNITED KINGDOM AND IRELAND € millions Revenues Corporate +64.0% 73% Favorable Contribution of €131million currency from Rugby World Cup Organic effect 639 Acquisitions growth On-going ramp-up of Justice contracts Other (launched in February 2015) and Corporate contracts (launc
Slide 25: Issue Volume and Revenues
BENEFITS AND REWARDS SERVICES Q1 16 ISSUE VOLUME AND REVENUES € billions Issue volume € millions Revenues Organic Acquisitions growth* 4.2 4.0 Organic Acquisitions 198 growth* 186 Unfavorable currency Unfavorable effect currency effect +5.7% +5.3% ORGANIC ORGANIC GROWTH GROWTH Q1 Fiscal Q1 Fiscal Q1
Slide 26: Issue Volume and Revenues: Latin America
BENEFITS AND REWARDS SERVICES Q1 16 ISSUE VOLUME AND REVENUES Latin America € billions Issue volume € millions Revenues 52% In FY 2015 Organic Organic growth Acquisitions growth Acquisitions 109 2.0 88 Unfavorable currency 1.6 effect Unfavorable currency effect +8.4% +8.9% ORGANIC ORGANIC GROWTH GRO
Slide 27: Issue Volume and Revenues: Europe and Asia
BENEFITS AND REWARDS SERVICES Q1 16 ISSUE VOLUME AND REVENUES Europe and Asia € billions Issue volume € millions Revenues 48% in FY 2015 Favorable currency Acquisitions effect 2.4 Favorable Organic currency 98 effect 2.2 growth Organic Acquisitions 89 growth +3.3% +1.1% ORGANIC ORGANIC GROWTH GROWTH
Slide 28: Fiscal 2015 Solid Financial Performance
FISCAL 2015 SOLID FINANCIAL PERFORMANCE 28 – Sodexo Overview, January 2016
Slide 29: Fiscal 2015: A Year of Progress
A FY YEAR 15 OFA PROGRESS YEAR OF PROGRESS Solid financial performance Contract wins in On-site Services, led by integrated services offer Sustained activity in Benefits and Rewards Services Increased differentiation in Quality of Life Services 29 – Sodexo Overview, January 2016
Slide 30: Solid Financial Performance
FY 15 SOLID FINANCIAL PERFORMANCE Revenues €19.8 billion +10% Total growth +2.5% Organic growth Operating profit €1,143 million +11.9%* Excluding currency effects Operating margin 5.8% +40 bps* vs fiscal 2014 excluding currency effects +90 bps* Over two years excluding currency effects * Before exce
Slide 31: A Stronger Financial Position
FY 15 A STRONGER FINANCIAL POSITION +32.4% Group Net Income €700 million Excluding +42.9% currency effects Free cash flow €688 million +14.3% Net debt (as of August 31, 2015) €339 million Gearing ratio 9% 12% As of August 31, 2015 As of August 31, 2014 €2.20 +22.2% Proposed dividend per share Share
Slide 32: Organic Growth: +2.5%
FY 15 ORGANIC GROWTH Organic growth: +2.5% of which: On-site Services Benefits and Rewards Services +2.2% +9.5% 32 – Sodexo Overview, January 2016
Slide 33: On-site Services Organic Growth of +2.2%
ON-SITE SERVICES FY 15 ORGANIC GROWTH OF +2.2% United Kingdom and Ireland Continental North +12.8% +0.6% Europe America +1.5% +1.7% Rest of the World 33 – Sodexo Overview, January 2016
Slide 34: Successful Integrated Offers and Quality of Life Positioning
ON-SITE SERVICES FY 15 SUCCESSFUL INTEGRATED OFFERS AND QUALITY OF LIFE POSITIONING Corporate Contract start-ups in Justice segment in the United Kingdom +3.9% Dynamic growth in integrated services in the United States ORGANIC GROWTH Growth in Remote Sites at the start of the year Health Care and Se
Slide 35: Growth Indicators
ON-SITE SERVICES FY 15 GROWTH INDICATORS Client retention Comparable Business unit growth development 93.4% 93.1% 7.1% 7.5% 2.5% 2.2% Fiscal 2014 Fiscal 2015 Fiscal 2014 Fiscal 2015 Fiscal 2014 Fiscal 2015 including voluntary contract terminations 35 – Sodexo Overview, January 2016
Slide 36: Organic Growth Benefits and Rewards Services
FY 15 ORGANIC GROWTH BENEFITS AND REWARDS SERVICES Latin America Increase in face values and higher interest rates +14.4% ORGANIC GROWTH IN REVENUES Europe and Asia Accelerated growth led by contract wins +3.8% ORGANIC GROWTH in Turkey, India and China IN REVENUES 36 – Sodexo Overview, January 2016
Slide 37: Increase in Operating Profit
FY 15 INCREASE IN OPERATING PROFIT* +40 bps 5.8% Operating 5.4% margin 1,143 966 +11.9% Operating profit EXCLUDING CURRENCY € millions EFFECTS Fiscal 2014 Fiscal 2015 * Excluding currency effects exceptional items in Fiscal 2014 related to operational efficiency program 37 – Sodexo Overview, January
Slide 38: Increase in Operating Margin
FY 15 INCREASE IN OPERATING MARGIN* United Kingdom and Ireland 5.1% Continental 4.2% Europe North 6.3% +60 bps +10 bps America +100 bps 4.6% +40 bps 34.5% +0 bps Rest of at constant exchange rates the World Benefits & Rewards Services * Excluding currency effects exceptional items in Fiscal 2014 rel
Slide 39: Operational Efficiency Program
FY 15 OPERATIONAL EFFICIENCY PROGRAM € millions Fiscal 2013 28 ACHIEVED ANNUAL Fiscal 2014 100 SAVINGS Fiscal 2015 170 EXCEPTIONAL Cumulative IMPLEMENTATION over 18 months 166 (Sept. 2012-Feb. 2014) EXPENSES 39 – Sodexo Overview, January 2016
Slide 40: Increased Consolidated Results
FY 15 INCREASED CONSOLIDATED RESULTS Fiscal 2015 Fiscal 2014 CHANGE € millions € millions At current At constant exchange rates exchange rates Revenues 19,815 18,016 +10.0% +2.6% Operating profit before exceptional items 1,143 966 +18.3% +11.9% Exceptional items 0 (27) Operating profit 1,143 939 +21
Slide 41: Consolidated Cash Flow
FY 15 CONSOLIDATED CASH FLOW € millions Fiscal 2015 Fiscal 2014 CHANGE Operating cash flow 973 708 +37.4% Net capital expenditure (353) (294) Change in working capital 68 188 Free cash flow 688 602 +14.3% Net acquisitions (49) (50) Change in shareholders’ equity (323) (282) Other changes (including
Slide 42: Consolidated Balance Sheet
FY 15 CONSOLIDATED BALANCE SHEET ROBUST RATIOS € millions Aug. 31, Aug. 31, Aug. 31, Aug. 31, 2015 2014 2015 2014 Non-current assets 7,334 6,852 Shareholders’ equity 3,710 3,189 Current assets 4,396 4,120 Non-controlling interests 34 32 excluding cash Financial assets related 739 758 Non-current lia
Slide 43: Integrated Services Offer Boosted by Investments in Facilities Management
FY 15 INTEGRATED SERVICES OFFER BOOSTED BY INVESTMENTS IN FACILITIES MANAGEMENT FM FM as a percentage of revenue as a percentage of revenue 18% Fiscal 2005 31% 57% 29% Fiscal 2015 Continental Europe United Kingdom Gross margin +10% €5.6bn for multi-technical maintenance services 6 Average annual gro
Slide 44: Sustained Demand for Benefits and Rewards Services
FY 15 SUSTAINED DEMAND FOR BENEFITS AND REWARDS SERVICES ORGANIC REVENUE GROWTH 13.0% 9.5% 8.5% 8.3% 6.9% 2010-11 2011-12 2012-3 2013-4 2014-5 Acquisition of 4 Motivcom in the United Kingdom, Sodexo becomes 65% Further double digit new countries European leader growth Portugal, Panama, paperless/dig
Slide 45: Recognized Positioning and Leadership in Quality of Life Services
FY 15 RECOGNIZED POSITIONING AND LEADERSHIP IN QUALITY OF LIFE SERVICES The Sodexo/Harris Interactive survey revealed that 91% of executives queried believe there is a link between quality of life and their organization's performance Sodexo/Harris Interactive Survey - April 2015 A first internationa
Slide 46: Better Leverage Our Global Consumer Knowledge
FY 15 BETTER LEVERAGE OUR GLOBAL CONSUMER KNOWLEDGE Strengthening relations with consumers Partnerships Le Village in Paris Bringing nutritional advice https://mindful.sodexo.com/ Facilitate the flow of information The Camp in Aix-en-Provence Reinforcing ties 46 – Sodexo Overview, January 2016
Slide 47: Societal Commitments to Combat Waste
FY 15 SOCIETAL COMMITMENTS SODEXO with PEPSICO First international coalition UNILEVER MCCAIN to combat waste ARDO all along the food chain SCA WWF By 2017, $1 billion in purchases from 5,000 small and mid-sized enterprises in 40 countries, including 1,500 managed by women 47 – Sodexo Overview, Janua
Slide 48: Recognitions
FY 15 RECOGNITIONS Global Sustainability Industry Leader in its sector for the 11th year in a row No.1 among SBF 120 index companies in 2015 for the proportion of women in senior management 43% women on the Group Executive Committee 38% women on the Sodexo Board of Directors Recognized for its commi
Slide 49: Outlook
OUTLOOK 49 – Sodexo Overview, January 2016
Slide 50: Global Segments
OUTLOOK EVOLUTION OF THE ORGANIZATION CORPORATE HEALTH CARE ENERGY & SCHOOLS UNIVERSITIES GOVERNMENT SPORTS & SERVICES & SENIORS RESOURCES & AGENCIES LEISURE GLOBAL SEGMENTS 7 GLOBAL SEGMENTS DRIVE GROWTH AND CREATE VALUE THROUGH CLIENT SPECIALIZATION SERVICE OPERATIONS TRANSVERSAL FUNCTIONS 50 – So
Slide 51: Adaptation and Simplification Measures
OUTLOOK ADAPTATION AND SIMPLIFICATION MEASURES Reinforced adaptation of site level operating costs Organizational simplification Increased mutualisation across geographies AROUND €200 MILLION OF AROUND €200 MILLION ANNUAL SAVINGS BY YEAR 3 IN EXCEPTIONAL EXPENSE (100% PAYBACK IN FISCAL 2018) (SEPTEM
Slide 52: Fiscal 2016 Objectives
OUTLOOK FISCAL 2016 OBJECTIVES In light of the current economic environment, the Group is targeting: Organic revenue growth of around 3% An increase in operating profit of around 8% (excluding currency effects and exceptional items) 52 – Sodexo Overview, January 2016
Slide 53: Medium-Term Objectives
OUTLOOK MEDIUM-TERM OBJECTIVES The Group is confident of achieving its medium-term objectives: average annual growth average annual growth an average annual in revenue of between in operating profit of cash conversion 4% and 7% between 8% and 10% ratio* of around 100% (excluding currency effects) (e
Slide 54: Shareholders & Investor Relations
SHAREHOLDERS & INVESTOR RELATIONS 54 – Sodexo Overview, January 2016
Slide 55: Sodexo Share Ownership
SHAREHOLDERS AND INVESTOR RELATIONS SODEXO SHARE OWNERSHIP as of August 31 2015 st Treasury shares 3.1% Individuals 3.9% Employees 0.7% French institutional shareholders 12.7% Bellon SA 37.7% International institutional shareholders 41.9% Allianz Global Investors Europe 2.8% First Eagle Investment M
Slide 56: Sodexo Share Ownership
SHAREHOLDERS AND INVESTOR RELATIONS SODEXO SHARE OWNERSHIP as of August 31 2015 st 56 – Sodexo Overview, January 2016
Slide 57: Sodexo Shares
SHAREHOLDERS AND INVESTOR RELATIONS SODEXO SHARES Sodexo shares are listed on NYSE Euronext Paris Euroclear code: FR 0000121220; included in the Next 20 index Sodexo American Depositary Receipts (ADRs) are traded on the over the counter (OTC) market, ticker SDXAY, with five ADRs representing one Sod
Slide 58: Share Performance
SHAREHOLDERS AND INVESTOR RELATIONS SHARE PERFORMANCE as of August 31 2015 st Over the last five Fiscal years, Sodexo’s share price increased by 73%, whereas the CAC 40 index increased by 33% during the same period. During the last Fiscal year, Sodexo’s share price increased by 4.5% 58 – Sodexo Over
Slide 59: Financial Calendar
SHAREHOLDERS AND INVESTOR RELATIONS FINANCIAL CALENDAR These dates are purely indicative, and are subject to change without notice. Regular updates are available in the calendar on our website www.sodexo.com. 59 – Sodexo Overview, January 2016
Slide 60: Appendices
APPENDICES 60 – Sodexo Overview, January 2016
Slide 61: Q1 2016 - Principal Exchange Rates
APPENDIX 1 Q1 2016 - PRINCIPAL EXCHANGE RATES Average Average Revenue Closing Closing €1 = rate rate Change impact rate rate Change Q1 Fiscal Q1 Fiscal average Q1 15-16 Q1 Fiscal Q1 Fiscal closing 2016 2015 rate (in € millions) 2016 2015 rate U.S. dollar 1.1034 1.2643 +14.6% +300 1.0579 1.2483 +18.0
Slide 62: FY 2015 - Sensitivity to Exchange Rates
APPENDIX 2 FY 2015 - SENSITIVITY TO EXCHANGE RATES € 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 2015 Change 2015 Change Revenues profit equity U.S. dollar 1.1594 +17
Slide 63: Analysis of Financial Debt
APPENDIX 3 ANALYSIS OF FINANCIAL DEBT* AS OF AUGUST 31, 2015 € millions BY CURRENCY BY MATURITY 39% € < 1 year 316 1-2 years 13 61% $ 2-3 years 230 BY INTEREST RATE 3-4 years 200 100% Fixed rate 4-5 years 67 2 average rate of 3.8% as of August 31, 2015 > 5 years 2,254 * Financial debt of €3,080 mill
Slide 64: Financial Ratios
APPENDIX 4 FINANCIAL RATIOS Gearing ratio Reimbursement capacity Net debt/Shareholders' equity Gross financial debt/ Operating cash flow objective < 75% objective < 4 years 4.1 21% 3.4 16% 3.1 2.8 12% 9% Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015
Slide 65: Financial Ratios
APPENDIX 4 FINANCIAL RATIOS Interest cover Net debt ratio Operating profit/ Net debt/EBITDA Net financial expense objective < 2 years 9.0 0.5 0.4 6.6 6.0 5.4 0.3 objective > 5 0.2 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015 65 – Sodexo Overview, Ja
Slide 66: Investor Relations Contacts
APPENDIX 5 INVESTOR RELATIONS CONTACTS www.sodexo.com Head of Investor Relations Virginia JEANSON Tel : + 33 1 57 75 80 56 virginia.jeanson@sodexo.com Investor Relations Manager Alejandra LEFEBVRE Tel : + 33 1 57 75 80 75 alejandra.lefebvre@sodexo.com Investor Relations Coordinator Cynthia CATTY Tel
Slide 67: Thank You!
THANK YOU! 67 – Sodexo Overview, January 2016