Slide 1: First Quarter Fiscal 2019 Revenues
First Quarter Fiscal 2019 Revenues January 10, 2019
Slide 2: Forward-Looking Information
FORWARD-LOOKING INFORMATION This presentation contains statements that may be considered as 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 Sodexo assumes no obligation to up
Slide 3: Agenda
AGENDA 1. First Quarter Fiscal 2019 highlights 2. Review of Operations: › On-Site Services revenues › Benefits & Rewards Services revenues 3. Action plans 4. Outlook for Fiscal 2019 5. Appendices 3 January 10, 2019 - Sodexo First quarter Fiscal 2019 revenues
Slide 4: Key First Quarter Fiscal 2019 Highlights
KEY FIRST QUARTER FISCAL 2019 HIGHLIGHTS
Slide 5: Organic Growth in Line with Expectations
ORGANIC GROWTH IN LINE WITH EXPECTATIONS First quarter fiscal 2019 highlights Group On Site Services Q1 FY2019 Q1 FY2019 Improvement in Health Care +2.3% and Education in North America B&A impacted by lower revenues in +2.6% +0.2% +4.2% G&A and high last year comparative North America excl. North
Slide 6: Acquisition Contribution
ACQUISITION CONTRIBUTION First quarter fiscal 2019 highlights Contribution of all acquisitions* M&A Activity in Q1 FY19 to total growth Enriching FY18 Q1FY19 FY19 offers in Switzerland Estimated 2.9% 4.8% >2% Strategic moves in Brazil Consolidating positions in the UK in France 6 January 10, 2019 -
Slide 7: Centerplate Integration
CENTERPLATE INTEGRATION First quarter fiscal 2019 highlights Contract Wins Contract Retentions Synergies $25m of synergies expected over 4 year period, of which approximately ▪ 50% in Support functions ▪ 50% in Procurement Detroit 45% of synergies achieved in Fiscal 2018 75% of estimated synergies t
Slide 8: Review of Operations
REVIEW OF OPERATIONS On-site Services Benefits & Rewards Services
Slide 9: Organic Growth
ORGANIC GROWTH Review of operations REVENUE GROWTH +6.8% Currency effect Scope changes -0.6% +4.8% ORGANIC GROWTH +2.6% of which: On-site Services Benefits and Rewards Services +2.3% +9.5% 9 January 10, 2019 - Sodexo First quarter Fiscal 2019 revenues
Slide 10: Review of Operations: On-site Services revenues
REVIEW OF OPERATIONS On-site Services revenues OSS
Slide 11: On-Site Services Organic Growth by Region
ON-SITE SERVICES ORGANIC GROWTH BY REGION 39 % 45 % NORTH +2.8% EUROPE of OSS of OSS AMERICA +0.2% +4.2% +7.9% On-site Services Excluding North America 16 % AFRICA - ASIA - AUSTRALIA of OSS LATAM & MIDDLE EAST 11 January 10, 2019 - Sodexo First quarter Fiscal 2019 revenues * Please refer to Appendix
Slide 12: Business & Administrations – Revenues
56% BUSINESS & ADMINISTRATIONS – REVENUES On-site Services FY18 NON RESTATED ORGANIC GROWTH RESTATED ORGANIC GROWTH € millions North America Organic Net -1.3%1 growth acquisition ▪ Q1 last year impacted by significant E&R project work +0.9% Unfavorable ▪ USMC renewed with lower comparable unit sales
Slide 13: Health Care & Seniors – Revenues
24% HEALTH CARE & SENIORS – REVENUES On-site Services FY18 NON RESTATED ORGANIC GROWTH RESTATED ORGANIC GROWTH € millions Organic Favorable +0.8%1 North America Growth Net currency acquisition effect ▪ Improvement in comparable unit growth 63% +5.3% ▪ Steady retention in Health Care but under pressu
Slide 14: Education – Revenues
20% EDUCATION – REVENUES On-site Services FY 18 ORGANIC GROWTH € millions Organic Favorable Growth Net currency effect +0.6% North America +2.5% acquisition ▪ Neutral net new/lost business from previous year 75% 1,327 ▪ Steady comparable unit growth of FY18 Education 1,254 +8.9% Europe ▪ New busines
Slide 15: Review of Operations: Benefits & Rewards Services revenues
REVIEW OF OPERATIONS Benefits & Rewards Services revenues BRS
Slide 16: Revenues by Service Line
REVENUES BY SERVICE LINE Benefits & Rewards Services Employee Benefits Services diversification € millions € millions Organic growth +10.5% 10.5 Unfavorable 153 currency effect 153 Organic growth +6.1% Net acquisition Unfavorable 41 currency effect 43 Q1 Fiscal Q1 Fiscal Q1 Fiscal Q1 Fiscal 2018 201
Slide 17: Revenues by Region
REVENUES BY REGION Benefits & Rewards Services Latin America 44% 10.0 FY 18 BRS Europe, Asia, USA 56% FY 18 BRS revenues € millions revenues € millions Organic growth Organic growth 10.5 +7.6% Net acquisition +11.8% Unfavorable currency effect 107 Unfavorable currency effect 101 93 90 Q1 Fiscal Q1 F
Slide 18: Revenues by Nature
REVENUES BY NATURE Benefits & Rewards Services OPERATING REVENUES FINANCIAL REVENUES € millions € millions Organic growth Net Organic growth +9.2% acquisition +12.7% Unfavorable 17 176 currency effect 180 Unfavorable 17 currency effect 17 Q1 Fiscal Q1 Fiscal Q1 Fiscal Q1 Fiscal 2018 2019 2018 2019 ▪
Slide 19: Action Plans
ACTION PLANS
Slide 20: Focus on Growth Strategic Agenda
FOCUS ON GROWTH STRATEGIC AGENDA Strict follow-up of labor KPI’s in North America Enhancing food offer delivery Universities in Q1 ▪ >12,000 lunches delivered weekly ▪ reduction in temporary labor spend of 10.1% ▪ 200 corporate clients ▪ Improvement of full time/part time ratio of 1.5% ▪ Sales growt
Slide 21: Management Evolution to Support the Strategic Agenda
MANAGEMENT EVOLUTION TO SUPPORT THE STRATEGIC AGENDA A new leader for North America Sarosh Mistry appointed Region Chair North America, joining the Group Executive Committee Since 2016, Sarosh Mistry has been Chief Prior to joining Sodexo, Sarosh was Chief Executive Officer of Sodexo Home Care Execu
Slide 22: Outlook
OUTLOOK
Slide 23: Fiscal 2019 Objectives Maintained
FISCAL 2019 OBJECTIVES MAINTAINED Outlook ▪ Growth in line with expectations in Q1 FY19 ▪ Stable growth in Europe Organic revenue growth ▪ Continued solid growth in developing economies between 2 and 3% ▪ Progressive improvement in North America ▪ Action plans delivering Underlying operating ▪ Produ
Slide 24: Q&A
Q&A
Slide 25: Appendices
APPENDICES 1. Contract wins and extensions 2. Sodexo Ventures 3. First quarter Fiscal 2019 Exchange rates 4. Alternative Performance Measure definitions and financial ratios 5. Restatement 6. Financial calendar 7. Sodexo key figures 8. Investor Relations contacts
Slide 26: Contract Wins and Extensions
CONTRACT WINS AND EXTENSIONS Appendix 1 Murray State University CD 78 Ronald Reagan Library Contract Wins Universities contract Schools contract Sports & Leisure contract in the US in France in the US Arizona Christian Phipps Conservatory US Marine Corps Contract University and Botanical Gardens Ret
Slide 27: Sodexo Ventures: Strategic Corporate Venture Fund
SODEXO VENTURES: Appendix 2 STRATEGIC CORPORATE VENTURE FUND health & wellness food-tech workspace mobility food-tech 27 January 10, 2019 - Sodexo First quarter Fiscal 2019 revenues
Slide 28: First Quarter Fiscal 2019 Exchange Rates
FIRST QUARTER FISCAL 2019 EXCHANGE RATES Appendix 3 Change average rates 1€ = Average rate Reference rate Q1 Fiscal 19 Closing rate Closing rate 30/11/19 Q1 Fiscal 19 Q1 Fiscal 18 vs. Reference Fiscal 18 at 30/11/2018 vs. 31/08/18 1.146 1.193 +4.0% 1.136 +2.6% U.S. Dollar Pound Sterling 0.890 0.884
Slide 29: Alternative Performance Measure Definitions
ALTERNATIVE PERFORMANCE MEASURE DEFINITIONS Appendix 4 Organic growth As a result, for the calculation of organic growth, Argentine Peso figures Organic growth corresponds to the increase in revenue for a given period for FY2019 and FY 2018, have been converted at the exchange rate of (the "current
Slide 30: On Site Services Inter-Segment Restatements
ON SITE SERVICES INTER-SEGMENT RESTATEMENTS Appendix 5 R E V E N UE S FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 (In millio ns o f euro ) B&A HC EDU B&A HC EDU B&A HC EDU B&A HC EDU B&A HC EDU North America -12 +9 +3 -3 +2 +1 -3 +2 +1 -3 +2 +1 -3 +2 +1 Europe -158 +158 -41 +41 -39 +39 -41 +41 -37 +37 Afri
Slide 31: Financial Calendar
FINANCIAL CALENDAR Appendix 6 Annual Shareholders’ Meeting 2019 January 22, 2019 Dividend ex-date January 30, 2019 Dividend record date January 31, 2019 Dividend payment date February 1, 2019 1st half results – Fiscal 2019 April 11, 2019 Nine month revenues, Fiscal 2019 July 8, 2019 Annual results,
Slide 32: Sodexo Key Figures
SODEXO KEY FIGURES Appendix 7 ▪ Founded in 1966 by Pierre Bellon €20.4bn revenues ▪ Main Shareholders as 31/08/2018: > Bellon S.A 42.2% of capital (57.2% of voting rights) 460,000 employees > International institutional investors 43% 19th Largest private employer worldwide 100 million consumers serv
Slide 33: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Appendix 8 www.sodexo.com Head of Investor Relations ▪ Virginia JEANSON Tel: + 33 1 57 75 80 56 virginia.jeanson@sodexo.com Investor Relations Manager ▪ Sarah JAMALI-KLEIN Tel: + 33 1 57 75 83 68 sarah.jamali@sodexo.com Investor Relations Coordinator ▪ Cynthia CATTY Tel:
Slide 34: Thank you!
Thank you!