Sodexo Sa · EURONEXT:SW
Sodexo Sa — H1 2025 Earnings Presentation
44 slides from Sodexo Sa's earnings presentation, Apr 4, 2025
Slide 1: First half Fiscal 2025 results
First half Fiscal 2025 results April 4, 2025
Slide 2: Review of 2025 developments and outlook
1. Review of 2025 developments and outlook Q1 Fiscal 2025 Revenues - January 7, 2025 2
Slide 3: Assessing Challenges following March 20 Announcement
01 Review of Developments Assessing Challenges following March 20 Announcement ▬ H1 results & guidance update ▬ Focus Areas: • North America Education • North America Net new • Europe Facilities Management ▬ Outlook: • Strong fundamentals • Confidence in strategy • Focus on execution and long-term g
Slide 4: Understanding the Organic Growth Guidance: Key drivers
01 Review of Developments Understanding the Organic Growth Guidance : Key drivers +5.5% to +6.5% North America = -200bps Key comments: -90bps • Organic growth guidance of +3% to +4% (from +5.5% to +6.5%) -60bps • 80% of revision is North America- -50bps related -40bps +3% to +4% - Main drag from Hea
Slide 5: Phasing of Organic Growth FY25
01 Review of Developments Phasing of Organic Growth FY25 +4.6% +2.5% to +4.5% +3% to +4% +3.5% Q4 +2.4% Q3 Q1'25 - Q2'25 - H1'25 - H2'25 - FY'25 Revised Group Group Group Group Group Guidance • FY25 outlook: +3% to +4% organic growth • H2 expected between 2.5% and 4.5%, with Q4 stronger than Q3, sup
Slide 6: Financial discipline
01 Review of Developments Financial discipline ▬ Cost management: • On-going execution of our Global Business Services project, €10m savings in FY25 • Further streamlining of the organization • Strict monitoring and control measures of HQ costs ▬ Continued strong cash flow: • Robust underlying Free
Slide 7: First half Fiscal 2025 highlights
2. First half Fiscal 2025 highlights Q1 Fiscal 2025 Revenues - January 7, 2025 7
Slide 8: First half Fiscal 2025 highlights: H1 Overview
02 First half Fiscal 2025 highlights H1 Overview H1 revenues H1 Organic Growth H1 Food Organic Growth €12,475m +3.5% +4.5% up +3.1% +2.4% Q2 OG New signings* UOP up Underlying Net Profit €1.0bn +6.4% €450m up +20% vs LY +10bps up +5.4% *including cross-selling margin improvement First half Fiscal 20
Slide 9: Commercial KPIs
02 First half Fiscal 2025 highlights Commercial KPIs LTM1 Net development LTM1 Retention rate LTM1 Development rate 95.5% 7.4% 7.3% 7-8% 6.8% 2.2% 94.2% 93.9% >94% 1.6% 1.2% 1-2% H1'24 FY'24 H1'25 FY'25 H1'24 FY'24 H1'25 FY'25 H1'24 FY'24 H1'25 FY'25 Target Target Target • LTM Retention Rate skewed
Slide 10: Solid commercial momentum in H1
02 First half Fiscal 2025 highlights Solid commercial momentum in H1 Overview of some contracts awarded, renewed and/or extended North America Europe Rest of the World AtlantiCare ESNEFT Santos Healthcare / New Dev. East Suffolk & North Essex NHS Foundation Trust Energy & Ressources / New Dev. Healt
Slide 11: North America business highlights
02 First half Fiscal 2025 highlights North America business highlights Supporting Major Events Expanding Convenience Launching a new branded offer in Universities CRH Catering acquisition Ongoing development in Airport lounges First half Fiscal 2025 results - April 4, 2025 - © Sodexo 2025. All right
Slide 12: Europe business highlights
02 First half Fiscal 2025 highlights Europe business highlights Celebrating culinary expertise Expanding branded offers & new concepts Jessie Sommarström Alexandre Mazzia Pursuing GPO expansion Adam Frédéric Collison Anton First half Fiscal 2025 results - April 4, 2025 - © Sodexo 2025. All rights Re
Slide 13: Rest of the World business highlights
02 First half Fiscal 2025 highlights Rest of the World business highlights Strong commercial momentum Developing “contactless” stores in Australia & India Opening of the Global Business Services center in Colombia First half Fiscal 2025 results - April 4, 2025 - © Sodexo 2025. All rights Reserved 13
Slide 14: The Sustainability Yearbook
02 First half Fiscal 2025 highlights Recognitions for impact on People & Planet The Sustainability Yearbook First half Fiscal 2025 results - April 4, 2025 - © Sodexo 2025. All rights Reserved 14
Slide 15: Financial performance
3. Financial performance Q1 Fiscal 2025 Revenues - January 7, 2025 15
Slide 16: Underlying EPS up +5.8%
03 Financial performance 1. Underlying EPS up +5.8% Sodexo continuing activities only H1 2025 H1 2024 Change(3) In million € Revenues 12,475 12,101 +3.1% Other Operating income and expenses Underlying Operating profit 651 612 +6.4% • Higher restructuring expenses in H1’25 Underlying Operating margin
Slide 17: Free cash flow
03 Financial performance Free cash flow In million € H1 2025 H1 2024 Operating cash flow(1) 600 739 Operating Cash Flow Change in working capital (491) (513) • Underlying operating cash flow was up versus last year, taking into account the exceptional IFRS 16 Leases outflow (87) (82) tax outflow rel
Slide 18: Strong Balance sheet
03 Financial performance Strong Balance sheet Maintained stable ratio through consistent Stable outlook with investment grade cash flow, effective debt management, rating from credit agencies reflects and ongoing cash flow optimization efforts our solid financial foundation In million € Feb 28, 2025
Slide 19: Review of Operations
4. Review of Operations 19
Slide 20: H1 Organic Revenue Growth at +3.5%, Food services at +4.5%
04 Review of Operations H1 Organic Revenue Growth at +3.5%, Food services at +4.5% Sodexo H1 Revenue North America +3.5% €12,475m +3.1% Currency effect Scope Change -0.1% -0.3% Europe +2.1% Organic growth +3.5% Rest of the World +6.6% Food services FM services +4.5% +1.7% Please refer to Appendix 10
Slide 21: North America H1 Revenues and Organic Growth
04 Review of Operations North America H1 Revenues and Organic Growth 47% of FY24 Revenues North America €5,977m +3.5% Business & Healthcare Sodexo Live! Education Administrations & Seniors Restated Organic Growth +6.5% +15.5% -1.9% +2.5% • Growth in Food Services driven by • Strong activity in Q1 ac
Slide 22: Europe H1 Revenues and Organic Growth
04 Review of Operations Europe H1 Revenues and Organic Growth 35% of FY24 Revenues Europe €4,336m +2.1% Business & Healthcare Sodexo Live! Education Administrations & Seniors Restated +1.6% Organic Growth +0.8% -2.8% excl. Paralympics & RWC +3.3% +6.3% • Benefited from price revisions • Higher volum
Slide 23: Rest of the World H1 Revenues and Organic Growth
04 Review of Operations Rest of the World H1 Revenues and Organic Growth 18% of FY24 Revenues Rest of the World €2,162m +6.6% Business & Healthcare Sodexo Live! Education Administrations & Seniors Restated Organic Growth +5.6% +19.0% +12.3% +14.0% • Strong growth in India and • New airline lounge op
Slide 24: UOP margin progressing
04 Review of Operations UOP margin progressing Difference Difference H1 25 H1 25 vs H1 24 vs H1 24 UOP UOP Margin (excl. currency effect) (excl. currency effect) YoY UOP margin progress at +10 bps, with improvements in all 3 zones: North 422 +5.6% 7.1% +10 bps America • North America benefited from
Slide 25: Outlook
5. Outlook 25
Slide 26: Fiscal 2025 guidance
05 Outlook Fiscal 2025 guidance Organic Growth +3% to +4% UOP Margin +10 to +20 basis points at constant currencies First half Fiscal 2025 results - April 4, 2025 - © Sodexo 2025. All rights Reserved 26
Slide 27: Q&A
6. Q&A 27
Slide 28: Appendices
7. Appendices 28
Slide 29: H1 Fiscal 2025 Revenue breakdown
07 Appendix 1 H1 Fiscal 2025 Revenue breakdown REVENUES BY REGION (in million euros) H1 2025 H1 2024 Organic Growth External Growth Currency Effect Total Growth North America 5,977 5,756 +3.5% -0.6% +1.0% +3.8% Europe 4,336 4,254 +2.1% -0.8% +0.7% +1.9% Rest of the World 2,162 2,091 +6.6% +1.5% -4.7
Slide 30: Q2 Fiscal 2025 Revenue breakdown
07 Appendix 2 Q2 Fiscal 2025 Revenue breakdown REVENUES BY REGION (in million euros) Q2 2025 Q2 2024 Organic Growth External Growth Currency Effect Total Growth North America 2,878 2,726 +0.9% -0.2% +4.8% +5.6% Europe 2,115 2,058 +2.1% +0.0% +0.6% +2.8% Rest of the World 1,079 1,030 +6.9% +1.4% -3.6
Slide 31: H1 Fiscal 2025 exchange rates
07 Appendix 3 H1 Fiscal 2025 exchange rates Average rate Closing rate Average rate Average rate H1 25 Closing rate Closing rate 02/28/25 1€ = H1 25 H1 24 vs. H1 24 at 02/28/2025 at 08/31/2024 vs. 08/31/24 U.S. Dollar 1.070 1.082 +1.1% 1.041 1.109 +6.5% Pound Sterling 0.834 0.864 +3.6% 0.826 0.841 +1
Slide 32: Modelling details for FY2025
07 Appendix 4 Modelling details for FY2025 (At constant exchange rates) Scope change effect on Other income Net financial Tax rate Fiscal 2025 revenues and expenses expenses ~-0.5% ~ €-150m ~ €100m c.23/24% First half Fiscal 2025 results - April 4, 2025 - © Sodexo 2025. All rights Reserved 32
Slide 33: Other income and expenses
07 Appendix 5 Other income and expenses In million € H1 2025 H1 2024 Net scope change impact (5) 83 Restructuring and rationalization costs (41) (15) Amortization of purchased intangible assets (17) (17) Other (8) (21) Other operating income and expenses (71) 30 First half Fiscal 2025 results - Apri
Slide 34: Breakdown of Gross Financial debt: €4,802m
07 Appendix 6 Breakdown of Gross Financial debt: €4,802m(1) By currency By maturity £ 6% (in million €) <1 € 69% 741 Year $ 25% 1-3 1,775 Years Average maturity By interest rate 4-5 1,602 of 2.8 years Years at 02/28/2025 6% variable >5 684 94% Years fixed Blended cost of debt 1.80% on February 28, 2
Slide 35: New segment reporting following evolution of the On-site Services organization
07 Appendix 7 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. Rest
Slide 36: Number of shares
07 Appendix 8 Number of shares Company’s share capital FEBRUARY 28, 2025 AUGUST 31, 2024 FEBRUARY 29, 2024 Company’s share capital, number of shares 147,454,887 147,454,887 147,454,887 Treasury shares 1,104,023 1,064,010 784,371 Net number of shares 146,350,864 146,390,877 146,670,516 Number of shar
Slide 37: Revenue breakdown by significant countries
07 Appendix 9 Revenue breakdown by significant countries Revenue First half Fiscal 2025 Revenue First half Fiscal 2024 France France €1,440m €1,424m 12% 12% Other Other €5,306m €5,200m 42% 43% United States United States €5,729m €5,477m 46% 45% First half Fiscal 2025 results - April 4, 2025 - © Sode
Slide 38: Growth indicator definitions
07 Appendix 10a 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 ye
Slide 39: Alternative Performance Measure - Definitions
07 Appendix 10b 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 40: Alternative Performance Measure - Definitions
07 Appendix 10c 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 41: APM - Financial ratios definitions & reconciliation
07 Appendix 11 APM - Financial ratios definitions & reconciliation H1 Fiscal 2025 H1 Fiscal 2024 Gross borrowings (a) – operating cash (b) Gearing ratio 85% 76% Shareholders’ equity and non-controlling interests Gross borrowings (a) – operating cash (b) Net debt ratio 2.3x 2.3x Rolling 12-month (Und
Slide 42: Financial calendar
07 Appendix 12 Financial calendar July 1, 2025 October 24, 2025 December 16, 2025 Q3 Fiscal 2025 Fiscal 2025 Fiscal 2025 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 43: Sodexo key figures
07 Appendix 13 Sodexo key figures As of August 31, 2024 ▬ Founded in 1966 by Pierre Bellon ▬ As at Feb. 28, 2025, Bellon SA holds 43.6% of capital (58.7% of voting rights) €23.8bn revenues ▬ Our purpose is to create a better everyday for everyone to build a better life for all 423,000 employees 80 m
Slide 44: Investor relations contacts
07 Appendix 14 Investor relations contacts 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 juliette.klein@sodexo.com alina.cazacu@sodexo.com Investor & Analyst Coordination Investor Relations Manager SO