Sodexo Sa · EURONEXT:SW
Sodexo Sa — Investor Day (November 2020)
141 slides from Sodexo Sa's investor day presentation, Nov 2, 2020
Slide 1: Welcome - Investor Day Sodexo
WELCOME Investor Day Sodexo November 2, 2020 You can’t stop the waves, but you can learn to surf. - Jon Kabat-Zinn -
Slide 2: Agenda Part I
AGENDA PART I Emerging from the Covid-19 crisis in better shape Denis Machuel Group Chief Executive Officer Our human centric and cash generative business model Cathy Desquesses Chief People Officer Marc Rolland Chief Financial Officer The building blocks for our future Denis Machuel Group Chief Exe
Slide 3: Agenda Part II
AGENDA PART II Work From Home: An opportunity Sunil Nayak CEO Corporate Services Worldwide Aurélien Sonet CEO Benefits & Rewards Services Sarosh Mistry Region Chair North America Q&A We are prepared for the future Denis Machuel Group Chief Executive Officer Q&A
Slide 4: Denis Machuel
DENIS MACHUEL Chief Executive Officer With a renewed Executive Committee, I have rebooted the business over the past 2 years.”
Slide 5: Addressing and fixing areas of underperformance
ADDRESSING AND FIXING AREAS OF UNDERPERFORMANCE Focus on the Challenges Rebalance Renew our culture of in North America the dynamic of our discipline and accountability Healthcare and Education development 5 Investor Day Sodexo I November 2, 2020
Slide 6: Addressing underperformance: North America Healthcare & Universities
ADDRESSING AND FIXING AREAS OF UNDERPERFORMANCE Focus on the Challenges in North America in Healthcare & Universities 130 Basis points increase in retention (2020 vs 2018) >95% Retention over the past 2 years excluding one voluntary contract exit Photo taken before Covid-19 Pandemic 6 Investor Day S
Slide 7: Exit of unprofitable contracts
ADDRESSING AND FIXING AREAS OF UNDERPERFORMANCE Focus on the Challenges in North America in Healthcare & Universities Exit of 200 m€ unprofitable contracts Photo taken before Covid-19 Pandemic 7 Investor Day Sodexo I November 2, 2020
Slide 8: Productivity improvements in North America
ADDRESSING AND FIXING AREAS OF UNDERPERFORMANCE Focus on the Challenges in North America in Healthcare & Universities PRODUCTIVITY +98 bps GP / Labor in Schools +203 bps GP / Food Costs in Healthcare Photo taken before Covid-19 Pandemic 8 Investor Day Sodexo I November 2, 2020
Slide 9: Rebalance development: Food services
ADDRESSING AND FIXING AREAS OF UNDERPERFORMANCE Rebalance the dynamic of our development Food services back into the heart of everything we do Photo taken before Covid-19 Pandemic 9 Investor Day Sodexo I November 2, 2020
Slide 10: New signatures in Corporate services
ADDRESSING AND FIXING AREAS OF UNDERPERFORMANCE Rebalance the dynamic of our development Food services back into the heart of everything we do Local contracts Food-only contracts 75% 50% New signatures in Corporate services H1 FY2020 10 Investor Day Sodexo I November 2, 2020
Slide 11: Focus on FM and Integrated offers
ADDRESSING AND FIXING AREAS OF UNDERPERFORMANCE Rebalance the dynamic of our development Focus on our FM and Integrated offers Photo taken before Covid-19 Pandemic 11 Investor Day Sodexo I November 2, 2020
Slide 12: Strengthen our IFM offer
ADDRESSING AND FIXING AREAS OF UNDERPERFORMANCE Rebalance the dynamic of our development Strengthen our IFM offer FM services 40% Of OSS revenues 75% for GSA Photo taken before Covid-19 Pandemic 12 Investor Day Sodexo I November 2, 2020
Slide 13: Performance management
ADDRESSING AND FIXING AREAS OF UNDERPERFORMANCE Renew our culture of discipline and accountability Focus on PERFORMANCE MANAGEMENT Tracks 80% of 19,000 sites 17 countries Sodexo’s revenues Fully deployed by October 2021 13 Investor Day Sodexo I November 2, 2020
Slide 14: Better execution
ADDRESSING AND FIXING AREAS OF UNDERPERFORMANCE Renew our culture of discipline and accountability Focus on BETTER EXECUTION Underperforming contracts Loss-making contracts Signing discipline 14 Investor Day Sodexo I November 2, 2020
Slide 15: Better execution: underperforming contracts
ADDRESSING AND FIXING AREAS OF UNDERPERFORMANCE Renew our culture of discipline and accountability Focus on BETTER EXECUTION Loss-making contracts Signing discipline Underperforming contracts Renegociated 15 Investor Day Sodexo I November 2, 2020
Slide 16: Better execution: loss-making contracts
ADDRESSING AND FIXING AREAS OF UNDERPERFORMANCE Renew our culture of discipline and accountability Focus on BETTER EXECUTION Underperforming contracts Signing discipline Loss-making contracts Being eliminated 16 Investor Day Sodexo I November 2, 2020
Slide 17: Better execution: signing discipline
ADDRESSING AND FIXING AREAS OF UNDERPERFORMANCE Renew our culture of discipline and accountability Focus on BETTER EXECUTION Underperforming contracts Loss-making contracts Signing Enhanced discipline 17 Investor Day Sodexo I November 2, 2020
Slide 18: Delivering our focus on growth: strategic agenda
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA Improve Operational Efficiency and productivity Expanded Client & Consumer centricity in Food services Corporate Responsibility anchored into everything we do Our people are the essence of our services, our growth and our success 18 Investor Day Sodexo
Slide 19: Country portfolio rationalization
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA Improve Operational Efficiency and productivity Certain countries DE-SEGMENTED COUNTRY portfolio rationalization 80 64 countries 19 Investor Day Sodexo I November 2, 2020
Slide 20: Finance functions mutualization
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA Improve Operational Efficiency and productivity FINANCE FUNCTIONS mutualization 3 Shared services centers 20 Investor Day Sodexo I November 2, 2020
Slide 21: IT enterprise architecture consolidation
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA Improve Operational Efficiency and productivity IT enterprise architecture CONSOLIDATION +60m€ Additional annual investment 21 Investor Day Sodexo I November 2, 2020
Slide 22: Consumer insights and AI
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA Expanded Client & Consumer centricity in Food services Consumer INSIGHTS & AI Anticipe food trends Improve sourcing Standardize our process For better customization Photo taken before Covid-19 Pandemic 22 Investor Day Sodexo I November 2, 2020
Slide 23: Optimization of food offers
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA Expanded Client & Consumer centricity in Food services OPTIMIZATION OF FOOD OFFERS 23 Investor Day Sodexo I November 2, 2020
Slide 24: Digitization of our food offer
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA Expanded Client & Consumer centricity in Food services DIGITIZATION of our food offer New CONSUMER EXPERIENCE 24 Investor Day Sodexo I November 2, 2020
Slide 25: New food tech acceleration
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA Expanded Client & Consumer centricity in Food services NEW FOOD TECH ACCELERATION Click & Collect and Food Delivery 70 partnerships with major e-commerce and delivery platforms Photo taken before Covid-19 Pandemic 25 Investor Day Sodexo I November 2, 2
Slide 26: #1 Industry leader
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA Corporate Responsibility anchored into everything we do #1 Industry leader 15th year in a row The highest marks in Sustainability Yearbook 13th consecutive year 26 Investor Day Sodexo I November 2, 2020
Slide 27: Food offer more sustainable than ever
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA Corporate Responsibility anchored into everything we do Food offer more sustainable than ever 27 Investor Day Sodexo I November 2, 2020
Slide 28: Reducing food waste
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA Reducing Corporate Responsibility anchored FOOD into everything we do WASTE WASTE WATCH PROGRAM Reduce food waste on our sites by 50% by 2025 685.000 kg of waste avoided in 340 sites in 8 months Photo taken before Covid-19 Pandemic 28 Investor Day Sode
Slide 29: Environmental commitments
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA Corporate Responsibility anchored into everything we do Carbon emission Waste management reduction Fresh and healthy ENVIRONMENTAL commitments Local supply products Single-use plastic Local communities reduction inclusion MORE and MORE CONTRACTS being
Slide 30: Meeting climate change ambitions
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA Corporate Responsibility anchored into everything we do MEETING CLIMATE CHANGE AMBITIONS First company in the sector to set objective for scope 3 Accounting for 98% of our total emissions 30 Investor Day Sodexo I November 2, 2020
Slide 31: Our people: learning and development
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA 2,500 Chefs trained at Our our Chef Academy people are the essence of our services, our growth Strong Learning and our & Development 500 people trained success commitments at our Sales Academy to develop talent Photos taken before Covid-19 Pandemic 31
Slide 32: Our people: incentives and digital training
DELIVERING OUR FOCUS ON GROWTH STRATEGIC AGENDA Performance incentive-based Our people are the essence of our services, our growth New and our digital & innovative success training models to facilitate agility Photos taken before Covid-19 Pandemic 32 Investor Day Sodexo I November 2, 2020
Slide 33: Marc Rolland and Cathy Desquesses
MARC ROLLAND Our business is founded on two pillars, Chief Financial Officer human centric and cash generative. ” CATHY DESQUESSES Chief People Officer
Slide 34: A sustainable business model
A SUSTAINABLE BUSINESS MODEL With two strong pillars Human- Cash centric generative 34 Investor Day Sodexo I November 2, 2020
Slide 35: A strong cash generative business model
A STRONG CASH GENERATIVE BUSINESS MODEL A resilient cash position in both OSS and BRS FCF Stabilizing after a significant drop in March (In million€) H2 FCF by activity 624 Government support* 72 H1 Q3 Q4 FY20 BRS OSS USPP Makewhole -243 -309 * Social charges/ VAT/ TAX deferrals 35 Investor Day Sode
Slide 36: A strong balance sheet
A STRONG BALANCE SHEET Average 5.1 bn€ Net Debt in bn€ maturity liquidity 2.1 5.7 years 1.9 1.2 Net Debt No more FY19 H1 FY20 FY20 Ratio covenants 2.1X 36 Investor Day Sodexo I November 2, 2020
Slide 37: A stable and balanced cash allocation
A STABLE AND BALANCED CASH ALLOCATION Paused investments in FY2020 51% 2% M&A Shareholders return* 37% 15% 34% Capex H2 M&A Shareholders return FY17- FY20 FY19 32% Capex H1 29% Capex (*) Dividend for FY19 was paid pre-Covid in February 2020 Cash allocation= Free Cash Flow before Capex 37 Investor Da
Slide 38: Focus on Capex
FOCUS ON CAPEX A level of Capex expected to gradually increase to 2.5% mid term 2500 2.5% 2.0% 2.0% 1.9% 2000 1.5% 1.4% 1500 Expected to stabilize at 1000 2.5% mid term (Universities, Sport & Leisure, New Food 500 models) 398 415 393 308 286 0 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Capex Capex to S
Slide 39: Focus on M&A
FOCUS ON M&A Continue selective Accelerate in Dispose non-core PHS acquisitions new food models activities and especially in and GPO geographies Home Care Support BRS OSS: Be digital opportunistic to transformation consolidate our and position and our consolidation of activities position 39 Investor
Slide 40: Employment evolution throughout the year
EMPLOYMENT EVOLUTION THROUGHOUT THE YEAR In thousands -50 470 420 Covid-19 related FY2019 FY2020 40 Investor Day Sodexo I November 2, 2020
Slide 41: Reduction in staff split amongst regions
EMPLOYMENT EVOLUTION THROUGHOUT THE YEAR Reduction in staff split amongst regions Europe 19% 58% North America 23% APAC, LATAM, MEA 41 Investor Day Sodexo I November 2, 2020
Slide 42: Reduction in staff in FY2020: North America
REDUCTION IN STAFF IN FY2020 North America NORTH AMERICA 43% FY20 revenues -17.4% No -19% Organic furlough headcount Growth 42 Investor Day Sodexo I November 2, 2020
Slide 43: Reduction in staff in FY2020: APAC, LATAM, MEA
REDUCTION IN STAFF IN FY2020 APAC, LATAM, MEA APAC, LATAM, MEA 17% FY20 revenues +2.5% 16% -6% Organic furlough headcount Growth 43 Investor Day Sodexo I November 2, 2020
Slide 44: Reduction in staff in FY2020: Europe
REDUCTION IN STAFF IN FY2020 Europe 40% Europe FY20 revenues -11.9% 59% -6% Organic furlough headcount Growth 44 Investor Day Sodexo I November 2, 2020
Slide 45: Employee relief program
EMPLOYEE RELIEF PROGRAM To support front line employees Enabled by senior Administrated executives locally and the company US: extended medical coverage Brazil: food vouchers distributed India and China: paid 50% of minimum wage 45 Investor Day Sodexo I November 2, 2020
Slide 46: 350M€ GET program
WE HAVE DESIGNED A 350M€ GET PROGRAM Global Effectiveness and Transformation OBJECTIVES TIMELINE COST & SAVINGS ◦ Adjust our OSS direct labour Over 2 fiscal years ◦ 350 m€ implementation costs costs to revenue drop to from H2FY20 protect our GP ◦ 90% cash impact to ◦ Sustainable reduction ◦ 350 m€ c
Slide 47: GET program costs and savings
WE HAVE DESIGNED A 350M€ GET PROGRAM Global Effectiveness and Transformation COST & SAVINGS (in million €) FY20 FY21 FY22 ◦ 350 m€ implementation costs Total exceptional costs 158 192 - ◦ 90% cash impact Cash impact -75 -175 -65 ◦ 350 m€ cumulated savings: SG&A incremental savings - 100 75 50% in GP
Slide 48: Differentiate on how we treat people
DIFFERENTIATE ON HOW WE TREAT PEOPLE We have treated and will continue to treat people with respect and fairness, while continuing to preserve diversity and inclusion. Management 56% 44% Men Women 49,500 82.4% people employees feel that Sodexo values diversity in the workplace Photos taken before Co
Slide 49: People are engaged
PEOPLE ARE ENGAGED 78%* 59% of respondents say they feel participation rate positive about the future 80%* 78%* 80% feel that their direct line agree that Sodexo handled engagement rate manager handled the impact of the in our latest survey the impact of the pandemic well pandemic well (*) agree and
Slide 50: Talent remains key for our future
TALENT REMAINS KEY FOR OUR FUTURE Our culture gives us a competitive advantage to retain and attract people in the war for talent. Photo taken before Covid-19 Pandemic 50 Investor Day Sodexo I November 2, 2020
Slide 51: Denis Machuel
DENIS MACHUEL Chief Executive Officer Our model is unique and more relevant than ever to capture growth opportunities.”
Slide 52: 3 clear priorities
A UNIQUE MODEL MORE RELEVANT THAN EVER TO CAPTURE GROWTH OPPORTUNITIES 3 CLEAR PRIORITIES Our People Our Clients Our Cash 52 Investor Day Sodexo I November 2, 2020
Slide 53: Our Clients priorities
3 CLEAR PRIORITIES Our Clients Provide Ensure Secure business consumer client continuity safety retention 53 Investor Day Sodexo I November 2, 2020
Slide 54: Driving our transformation
DRIVING OUR TRANSFORMATION Rationalize Transform Enable our food our cost investments operating base model 54 Investor Day Sodexo I November 2, 2020
Slide 55: Rationalize our cost base: optimize service portfolio
Rationalize our cost base 1 Optimize our portfolio of services Photo taken before Covid-19 Pandemic 55 Investor Day Sodexo I November 2, 2020
Slide 56: Rationalize our cost base: country portfolio
Rationalize our cost base 2 Optimize our country portfolio 56 Investor Day Sodexo I November 2, 2020
Slide 57: Rationalize our cost base: secure gross profit
Rationalize our cost base 3 Secure Gross Profit Photo taken before Covid-19 Pandemic 57 Investor Day Sodexo I November 2, 2020
Slide 58: Rationalize our cost base: SG&A savings
Rationalize our cost base 4 Focus on execution Generate 175 m€ in SG&A savings Photo taken before Covid-19 Pandemic 58 Investor Day Sodexo I November 2, 2020
Slide 59: Enable investments
Enable investments in IT, Digital & Data Marketing, Sales & Retention Supply Chain FM Technology 59 Investor Day Sodexo I November 2, 2020
Slide 60: Transform our food operating model
Transform our food operating model “Big 3” US, UK & France Future ”Big 3” Brazil, China & India Photo taken before Covid-19 Pandemic 60 Investor Day Sodexo I November 2, 2020
Slide 61: Sodexo, ready to compete
SODEXO, READY TO COMPETE >1 Tr€ Total addressable market for our 3 activities 61 Investor Day Sodexo I November 2, 2020
Slide 62: Sylvia Metayer
SYLVIA METAYER We’ve demonstrated the resiliency of our portfolio. We are well equipped to respond to the sanitary crisis in Chief Growth Officer the short to medium term, and uniquely positionned for the acceleration of working from home.’’
Slide 63: Growth equation
GROWTH EQUATION Growth Increased Attractive Consumer geographies outsourcing sectors relevance 63 Investor Day Sodexo I November 2, 2020
Slide 64: Economic recovery projections
ECONOMIC RECOVERY PROJECTIONS Different from country to country China & LATAM US APAC Europe Recovery projections Source – Sodexo internal projections / Oxford economics / IMF projections 64 Investor Day Sodexo I November 2, 2020
Slide 65: Clients & consumers evolving priorities: hygiene
CLIENTS & CONSUMERS EVOLVING PRIORITIES HYGIENE is number 1 priority 87% of employees want information on hygiene and cleanliness in the workplace Source 87%- Harris Interactive / Sodexo tracker / COVID19 65 Investor Day Sodexo I November 2, 2020
Slide 66: Evolving priorities: contactless
CLIENTS & CONSUMERS EVOLVING PRIORITIES CONTACTLESS is gaining ground 44% 30% Of employees are looking Of students plan to avoid for contactless, pick up on-campus dining if digital and food delivery ordering and payment options are not offered Source – 44% : - Harris Interactive / Sodexo tracker /
Slide 67: Evolving priorities: traceability
CLIENTS & CONSUMERS EVOLVING PRIORITIES TRACEABILITY of supply & local sourcing 41% 66% Of employees – post Of consumers try to buy lockdown – say locally from local companies sourced matters when where possible, up from it comes to food 62% in December 2019 Source – 41% - Harris Interactive/ Sodexo
Slide 68: Evolving priorities: outsourcing
CLIENTS & CONSUMERS EVOLVING PRIORITIES OUTSOURCING 1 in 3 Requests at NORAM Marketing & Sales Distribution Center is for first time outsourcing Source – 1/3 : MSDC data as of October 20 Photo taken before Covid-19 Pandemic 68 Investor Day Sodexo I November 2, 2020
Slide 69: Main shifts in market demand
MAIN SHIFTS IN MARKET DEMAND Re-opening until Before covid Confinement Stabilization containment Hygiene and #1 safety #2 Contactless Traceable #3 supply chain Increased #4 outsourcing Source – Sodexo Group Strategic Planning / Client interviews and Webinars / Microsoft future of retail survey 69 In
Slide 70: Growth expectations by market
GROWTH EXPECTATIONS BY MARKET Re-opening until Market Before covid Confinement Stabilization containment Healthcare and Senior care Schools Universities Business & Administrations Sports & Leisure Justice / Defense Production sites Office sites - FM Office sites - Food Meal and Food Voucher Services
Slide 71: Food services at office type sites
FOOD SERVICES at office type sites Less than 10% of Group Revenues 1.7 bn€ in FY19 Source: Sodexo Group Finance FY 19 Sonar data base/ Segment survey / Group Strategic Planning external benchmarks Photo taken before Covid-19 Pandemic 71 Investor Day Sodexo I November 2, 2020
Slide 72: Data based understanding of working from home
DATA BASED UNDERSTANDING OF WORKING FROM HOME >4,000 More than working 1,000 adults CLIENTS interviewed interviewed x5 survey waves Source – 1000 clients – Clients for Life STEM interviews/GSA webinars/ client individual interviews/ Secondary research and surveys 4000 : - Harris Interactive / Sodexo
Slide 73: Employees want to go back to the office
EMPLOYEES WANT TO GO BACK TO THE OFFICE HOME OFFICE DRAWBACKS 77% 34% Lack of Collaboration employees want go back to the office full or 32% Worse Worklife balance part time 90% Reported a positive experience when 20% Less Comfortable workspace returning to work Sources: 77% - IBM institute for Busi
Slide 74: Employers want them back in the office
EMPLOYERS WANT THEM BACK IN THE OFFICE… “While it was an incredible insight that 72%* 75%* you can innovate remotely, it is not a would long-term answer. agree remote working makes it mandate a Personal engagement return to the hard to maintain office for some remains essential for culture of their
Slide 75: But not five days a week
…BUT NOT FIVE DAYS A WEEK 26% 29% 25% 2.5 17% 2.0 2.0 8% 1.6 0.8 1.0 1.0 0.6 0.2 0.2 Pre-COVID Post-COVID Pre-COVID Post-COVID Pre-COVID Post-COVID Pre-COVID Post-COVID Pre-COVID Post-COVID Projection of the reduction of time spent on average at the office by 27% employees on Sodexo sites as a resul
Slide 76: Employees at home miss office food services
EMPLOYEES AT HOME MISS OFFICE FOOD SERVICES Et je pense que le visuel Aspretto de la page suivante irait mieux ici Free Food & Beverage on site in the Top 5 requested benefits 44% Social interaction such as lunch, coffee breaks or drinks Source – 44 % + Top 5 : Harris interactive / Sodexo / COVID19
Slide 77: Food at the office should be
FOOD AT THE OFFICE SHOULD BE Top 5 preferences Tasty 63% Affordable 61% Healthy 48% Fast 45% Safe 44% Source: - Harris Interactive / Sodexo tracker / COVID19 77 Investor Day Sodexo I November 2, 2020
Slide 78: Employees also want more services
EMPLOYEES ALSO WANT MORE SERVICES 26% Want vouchers and cards* 76% Food delivery (lunch and snacks) 64% Good quality coffee delivery 11% Childcare services Source: Harris Interactive / Sodexo / COVID19 tracker Voucher and Cards – only in countries where this is possible (5/8) 78 Investor Day Sodexo
Slide 79: What clients need now
WHAT CLIENTS NEED NOW Believe offices are key to shaping 1 Offices fit for a new purpose 90% culture and attracting talent 2 «Experience centers » Believe offices 3 Seamless continuity of services 80% will become innovation hubs Source - August 20 survey, Sodexo clients and others, N=32 Fortune 500
Slide 80: Key take aways
KEY TAKE AWAYS Unique Resilient Solid market capabilities for portfolio fundamentals Work from Home 80 Investor Day Sodexo I November 2, 2020
Slide 81: François Blanckaert
FRANÇOIS BLANCKAERT C h i e f P r o c u r e m e n t O f f i c e r
Slide 82: Supply management is a strategic asset
FRANÇOIS Supply management is a strategic asset BLANCKAERT for Sodexo, both to anticipate consumer expectations and to improve our cost base.’’ Chief Procurement Officer
Slide 83: Supply management is a strategic asset for Sodexo
SUPPLY MANAGEMENT IS A STRATEGIC ASSET FOR SODEXO 20 bn€ worth of food & supplies every year 150,000+ suppliers around the world 850+ Supply management team 83 Investor Day Sodexo I November 2, 2020
Slide 84: Our objectives
OUR OBJECTIVES Improve cost, cash and Bring value for consumers competitiveness to drive top-line growth Ensure safety, quality & traceability to reduce risk SUPPORTED BY 40 m€ investment in transformation over 3 years 84 Investor Day Sodexo I November 2, 2020
Slide 85: Our investments to raise competitiveness and drive growth
OUR INVESTMENTS TO RAISE COMPETIVENESS AND DRIVE GROWTH Responsible Efficiency Digitalization sourcing Improve cash management Compliance and traceability Health & wellbeing Inflation control Automation Source to Pay process Social equity Cost savings Data Analytics Protect and restore ecosystems 85
Slide 86: Industry-leading ambitions by 2025: health & wellbeing
INDUSTRY-LEADING AMBITIONS Responsible sourcing HEALTH & WELLBEING 100% of our consumers are offered healthy lifestyle options every day BY 2025 86 Investor Day Sodexo I November 2, 2020
Slide 87: Industry-leading ambitions by 2025: social equity
INDUSTRY-LEADING AMBITIONS Responsible sourcing SOCIAL EQUITY 2 bn€ spend with SMEs BY 2025 Photo taken before Covid-19 Pandemic 87 Investor Day Sodexo I November 2, 2020
Slide 88: Industry-leading ambitions by 2025: ecosystems
INDUSTRY-LEADING AMBITIONS Responsible sourcing PROTECT AND RESTORE ECOSYSTEM Cutting emissions to reach our science-based target of 34% (supply chain = 49% of Sodexo’s carbon emissions) BY 2025 88 Investor Day Sodexo I November 2, 2020
Slide 89: We are strengthening our foundations
WE ARE STRENGTHENING OUR FOUNDATIONS 95.7% of our global spend is with SODEXO UNIFORMS contracted suppliers having signed the Sodexo Supplier We have our own quality team Code of conduct. on site at the suppliers to ensure all standards of quality and ethics are guaranteed. 89 Investor Day Sodexo I
Slide 90: We go upstream to deliver more value downstream
WE GO UPSTREAM TO DELIVER MORE VALUE DOWNSTREAM Sodexo Partner Inclusion Program SODEXO FRANCE 100% of dairy products and yogurts, or eggs are French 10 regional buyers, experts in developing local partnerships 1.5 bn€ sourcing from SMEs, Average relationship with to reach 2 bn€ by 2025 suppliers: 1
Slide 91: We partner to tackle complex challenges
WE PARTNER TO TACKLE COMPLEX CHALLENGES 10 YEARS FOOD WASTE of partnership ◦ Fish & seafood: 78.2% confirmed from sustainable sources ◦ Palm oil: 32.7% of total volume certified sustainable ◦ Deforestation: New commitment this year 91 Investor Day Sodexo I November 2, 2020
Slide 92: Our ambition
OUR AMBITION To transform our supply chain and deliver competitive offers that foster health & wellbeing, social equity and a lower environmental impact.
Slide 93: Bruno Vanhaelst
BRUNO VANHAELST Our strength lies within our human-digital approach to our sales and marketing Chief Sales & Marketing Officer strategy grounded on actionable consumer insights.
Slide 94: Trends in the B2B sales & marketing ecosystem
TRENDS IN THE B2B SALES & MARKETING ECOSYSTEM More complex buyer journey 89% 73% 76% expect more of B2B buyers start source their solution personalized their journey on a on social media attention based on search engine their needs 94 Investor Day Sodexo I November 2, 2020
Slide 95: Our omnichannel approach
OUR OMNICHANNEL APPROACH More complex buyer journey Strengthen Build unique Enhance our go-to- relationships our sales market with our effectiveness strategies clients 95 Investor Day Sodexo I November 2, 2020
Slide 96: Transitioning to a more standardized approach
TRANSITIONING TO A MORE STANDARDIZED APPROACH ◦ Actionable client and consumer insights ◦ Consistent marketing strategy for the Segments across the regions ◦ Stronger, more concentrated service portfolio ◦ Transitioning to an account-based marketing and sales approach ◦ Taking a more proactive digit
Slide 97: Standardized approach: CRM backbone
TRANSITIONING TO A MORE STANDARDIZED APPROACH Human-digital partnered transition ◦ CRM as backbone of our sales and marketing structure ◦ Expanding our digital marketing and inside sales capabilities ◦ Enhancing our client retention process 2500 DAILY USERS ACROSS THE WORLD 97 Investor Day Sodexo I
Slide 98: Marketing & sales distribution centers
TRANSITIONING TO A MORE STANDARDIZED APPROACH Human-digital partnered transition ◦ CRM as backbone of our sales and marketing structure ◦ Expanding our digital marketing and inside sales capabilities ◦ Enhancing our client retention process MARKETING & SALES DISTRIBUTION CENTERS now open in North Am
Slide 99: Revamping Clients for Life retention program
TRANSITIONING TO A MORE STANDARDIZED APPROACH Human-digital partnered transition ◦ CRM as backbone of our sales and marketing structure ◦ Expanding our digital marketing and inside sales capabilities ◦ Enhancing our client retention process REVAMPING Clients for Life retention program 99 Investor Da
Slide 100: Global 'Rise with Sodexo' program
GLOBAL ‘RISE WITH SODEXO’ PROGRAM clients & prospects 2k webinar attendees +51% share of voice 54M impressions 13M video views 300K visits to rise website 100 Investor Day Sodexo I November 2, 2020
Slide 101: Sunil Nayak
SUNIL NAYAK Chief Executive Officer Corporate Services We remained relatively resilient during the crisis thanks to our portfolio mix and we are well positioned to leverage the opportunities that have emerged in the market.”
Slide 102: Corporate Services: a balanced portfolio
CORPORATE SERVICES A BALANCED PORTFOLIO 47% Revenue EUROPE 26% Global Strategic Accounts 40% FM services 23% Revenue 36% NORTH AMERICA Revenue Key sectors: 30% GROWING ECONOMIES Pharma and FMCG Asia Pacific, LatAm 102 Investor Day Sodexo I November 2, 2020
Slide 103: A huge market & key trends accelerated by the crisis
A HUGE MARKET & KEY TRENDS ACCELERATED BY THE CRISIS Food 30% FM 70% KEY TRENDS Flexibility driving Employee engagement Total market reduction in office to foster company culture, spaces, restaurants driving the growth of the 350bn€ and cost optimization market towards outsourcing, integration of se
Slide 104: Strategy to transform our business
STRATEGY TO TRANSFORM OUR BUSINESS 104 Investor Day Sodexo I November 2, 2020
Slide 105: Food transformation
FOOD TRANSFORMATION Invest & Commissary Partnership and with local cloud kitchen boutique companies Integration of Digitalization of BRS & OnSite food experience solutions 105 Investor Day Sodexo I November 2, 2020
Slide 106: Food transformation: cost base reduction
FOOD TRANSFORMATION Digitalization of food Cost base experience reduction Invest & Partnership Commissary with local and boutique companies cloud kitchen More food Integration of BRS & OnSite delivered solutions onsite 106 Investor Day Sodexo I November 2, 2020
Slide 107: Food transformation: increase consumer spending
FOOD TRANSFORMATION Commissary and Increase cloud kitchen consumer spending meican Invest & Partnership with local Digitalization of boutique food experience companies More Integration of BRS & OnSite consumer solutions touchpoints bite 107 Investor Day Sodexo I November 2, 2020
Slide 108: Food transformation: growth in new markets
FOOD TRANSFORMATION Commissary and cloud kitchen Growth in new markets Invest & Digitalization Partnership with of food experience local boutique companies Complementing Integration of existing BRS & OnSite portfolio solutions 108 Investor Day Sodexo I November 2, 2020
Slide 109: Food transformation: recover loss of revenue
FOOD TRANSFORMATION Commissary Increase and engagement cloud kitchen of employees working from home Digitalization Integration of of food BRS & OnSite experience solutions Invest & Recover loss Partnership of revenue with local boutique companies 109 Investor Day Sodexo I November 2, 2020
Slide 110: 110 Investor Day Sodexo I November 2, 2020
110 Investor Day Sodexo I November 2, 2020
Slide 111: FM & Workplace: our growth plays
FM & WORKPLACE: OUR GROWTH PLAYS VITAL SPACES WX Integrated Optimized and Digitalization ecosystem of people centric of workplace experience services workplace 111 Investor Day Sodexo I November 2, 2020
Slide 112: FM & Workplace transformation
FM & WORKPLACE TRANSFORMATION WX Optimized and people centric workplace VITAL SPACES Shift from Enhanced Integrated FM to employee Cost ecosystem of efficiency Workplace experience Digitalization services of workplace experience 112 Investor Day Sodexo I November 2, 2020
Slide 113: FM & Workplace transformation: Vital Spaces
FM & WORKPLACE TRANSFORMATION VITAL SPACES Integrated ecosystem of services WX Entry point Optimized and Higher value for IFM people centric services development Digitalization workplace of workplace experience 113 Investor Day Sodexo I November 2, 2020
Slide 114: FM & Workplace transformation: WX
FM & WORKPLACE TRANSFORMATION VITAL SPACES Digitalization Capture data Seamless Integrated of workplace to drive workplace ecosystem of services experience efficiencies experiences WX Optimized and people centric workplace 114 Investor Day Sodexo I November 2, 2020
Slide 115: Strategy to transform our business
STRATEGY TO TRANSFORM OUR BUSINESS Expand our Reinvent and FM services grow our food into the business Workplace People and care at the center of everything we do 115 Investor Day Sodexo I November 2, 2020
Slide 116: Aurélien Sonet
AURÉLIEN SONET Our goal for the next three years is to reinforce our leadership positions as Chief Executive Officer number 1 or 2 in each of our employee Benefits & Rewards Services benefits market”
Slide 117: Good resilience of BRS issue volume
GOOD RESILIENCE OF BRS ISSUE VOLUME Issue Volume -4% 80% Q4 -12% Q3 Employee Benefits core business BV back to -4% is 80% of our total revenues and encouraging September 117 Investor Day Sodexo I November 2, 2020
Slide 118: Our resilience key drivers
OUR RESILIENCE KEY DRIVERS Our clients, Our Our wide public or private, transformation geographical want and need into a full spread our products digital business 118 Investor Day Sodexo I November 2, 2020
Slide 119: Transforming the business and creating the platform for future growth
TRANSFORMING THE BUSINESS AND CREATING THE PLATFORM FOR FUTURE GROWTH Acceleration in digital User experience focus People switching and scalability to digital company of products 119 Investor Day Sodexo I November 2, 2020
Slide 120: Transforming the business: user experience focus
TRANSFORMING THE BUSINESS AND CREATING THE PLATFORM FOR FUTURE GROWTH User experience focus People: switching and scalability of products to digital company Acceleration in digital Photo taken before Covid-19 Pandemic 120 Investor Day Sodexo I November 2, 2020
Slide 121: Transforming the business: acceleration in digital
TRANSFORMING THE BUSINESS AND CREATING THE PLATFORM FOR FUTURE GROWTH Digital 9% of our revenues business volume invested in technology 86% Mobile, 2020 contactless >1 billion and app-to- digital app payment transactions solutions in 24 per year countries Acceleration in digital 73% 2018 Strategic p
Slide 122: Transforming the business: people switching to digital company
TRANSFORMING THE BUSINESS AND CREATING THE PLATFORM FOR FUTURE GROWTH People: switching Acceleration in digital to digital company User experience focus and scalability of products Photo taken before Covid-19 Pandemic 122 Investor Day Sodexo I November 2, 2020
Slide 123: Multi-benefits platform and delivery partners
TRANSFORMING THE BUSINESS AND CREATING THE PLATFORM FOR FUTURE GROWTH 70+ 120,000 e-commerce and deliveries/day since July delivery partners User experience focus Multi-benefits platform and scalability of products Work From Home joint offers with On-Site Services 123 Investor Day Sodexo I November
Slide 124: Transforming the business: user experience and scalability
TRANSFORMING THE BUSINESS AND CREATING THE PLATFORM FOR FUTURE GROWTH User experience focus Acceleration in digital and scalability of products People switching to digital company Photo taken before Covid-19 Pandemic 124 Investor Day Sodexo I November 2, 2020
Slide 125: People switching to digital company: training
TRANSFORMING THE BUSINESS AND CREATING THE PLATFORM FOR FUTURE GROWTH > 60% 69,280 182 BRS employees hours of training BRS leaders People switching trained in FY20 in FY20 participated in to digital company Shake My Mind program* * Shake My Mind is a training programme developed by Sodexo 125 Invest
Slide 126: Achieving our goals
ACHIEVING OUR GOALS 1.3m Client retention Development Merchants - SMEs 95% client - OSS/BRS Key to local retention joint ecosystem rate in FY21 solutions 126 Investor Day Sodexo I November 2, 2020
Slide 127: Achieving our goals: examples of initiatives
ACHIEVING OUR GOALS Some examples of initiatives 1.3m Merchants Let’s eat 11,000+ Vivent Cashback on QR codes since April Meal Pass card Average ticket size Les Restos 19,000 people registred on QR +36% 3,500 restaurants (Apr-20 to Sep-20) Key to local ecosystem 127 Investor Day Sodexo I November 2,
Slide 128: Outlook
OUTLOOK Total Employee benefits market: approx. 430 bn€ pre-covid #1 in 17 of our 34 markets >20% of revenues invested in tech Photo taken before Covid-19 Pandemic 128 Investor Day Sodexo I November 2, 2020
Slide 129: Outlook
OUTLOOK Total Employee benefits market: approx. 430 bn€ pre-covid #1 in 17 of our 34 markets >20% of revenues invested in tech 129 Investor Day Sodexo I November 2, 2020
Slide 130: Outlook
OUTLOOK Total Employee benefits market: approx. 430 bn€ pre-covid #1 in 17 of our 34 markets >20% of revenues invested in tech Photo taken before Covid-19 Pandemic 130 Investor Day Sodexo I November 2, 2020
Slide 131: Sarosh Mistry
SAROSH MISTRY The pandemic has forced us to focus. That focus has led to an increase in Chair of Sodexo North America retention and a tightening of our belts as the crisis unfolded.”
Slide 132: North America momentum interrupted by Covid-19
NORTH AMERICA MOMENTUM INTERRUPTED BY COVID-19 Renewed Invest in Resolve loss Focus on Regional digital making execution leadership commercial contracts team capabilities Client 2 thirds of Education GP retention rate top retention rate MSDC up management up +110 bps +230 bps renewed since FY18 132
Slide 133: Our strengths during the crisis
OUR STRENGTHS DURING THE CRISIS North Corporate America Services revenues 50% Blue-collar 14% of revenues in Corporate services 133 Investor Day Sodexo I November 2, 2020
Slide 134: Pro-active Covid-19 management
PRO-ACTIVE COVID-19 MANAGEMENT Paused Flexible Active labor Mobilized Capex and supply cost experts protected chain reduction Cash 134 Investor Day Sodexo I November 2, 2020
Slide 135: Focus on growth
FOCUS ON GROWTH NEW FOOD MODEL MODERNIZED APPROACH TO FM 135 Investor Day Sodexo I November 2, 2020
Slide 136: Focus on growth: new food model, pantry services and micro markets
FOCUS ON GROWTH NEW FOOD MODEL Pantry Micro services markets Photo taken before Covid-19 Pandemic 136 Investor Day Sodexo I November 2, 2020
Slide 137: Focus on growth: off-site food production
FOCUS ON GROWTH NEW FOOD MODEL Off-site food production Off-site productions Cloud kitchens units Photo taken before Covid-19 Pandemic 137 Investor Day Sodexo I November 2, 2020
Slide 138: Focus on growth: tech investments
FOCUS ON GROWTH NEW FOOD MODEL Tech investments Digital Automation consumer interface 138 Investor Day Sodexo I November 2, 2020
Slide 139: Focus on growth: modernized approach to FM
FOCUS ON GROWTH MODERNIZED APPROACH TO FM FM 27% FM 44% North Corporate America Services NA revenues revenues Photo taken before Covid-19 Pandemic 139 Investor Day Sodexo I November 2, 2020
Slide 140: Focus on growth: go to market and tech
FOCUS ON GROWTH MODERNIZED APPROACH TO FM Go To Market Tech strategy Sustainable (IOT, Standards Robotics) Talent Photo taken before Covid-19 Pandemic 140 Investor Day Sodexo I November 2, 2020
Slide 141: Denis Machuel: closing remarks
DENIS MACHUEL Chief Executive Officer Sodexo is building on its promise. The team and I are creating a collective momentum and a clear path to greater shareholder and stakeholder value.”