SHAREHOLDERS MEETING January 21, 2013 L EXPERTISE NEST PAS - PowerPoint PPT Presentation

SHAREHOLDERS’ MEETING January 21, 2013

L’ “EXPERTISE” N’EST PAS OBLIGATOIRE • • • • SHAREHOLDERS’ MEETING • • • • • January 21, 2013 • • • • • • •

MEMBERS OF THE BUREAU 3 – SHAREHOLDERS’ MEETING – January 21, 2013

MEMBERS OF THE BUREAU  Pierre Bellon Chairman of the Board of Directors  Jacques Lafaÿsse Representative of Sodexo Group employees  Sophie Clamens Representing Bellon SA  Louis-Pierre Schneider PWC  Isabelle Allen KPMG  Siân Herbert-Jones Group Chief Financial Officer  Michel Landel Chief Executive Officer  Nicole Huard General Secretary of the Board of Directors of Sodexo 4 – SHAREHOLDERS’ MEETING – January 21, 2013

MESSAGE FROM THE PRESIDENT 5 – SHAREHOLDERS’ MEETING – January 21, 2013

FINANCIAL PERFORMANCE FISCAL 2012 6 – SHAREHOLDERS’ MEETING – January 21, 2013

SOLID FINANCIAL PERFORMANCE Revenues € 18.2 Bn + 13.6% Organic revenue growth + 6.5% 984 M € Increased operating profit + 15.4% 525 M € Group net income + 16.4% 7 – SHAREHOLDERS’ MEETING – January 21, 2013

REVENUE GROWTH millions of euro + 2.7% + 4.4% Exchange rates 18,236 + 6.5% Acquisitions* Organic growth 16,047 + 13.6% OVERALL GROWTH FY 2011 FY 2012 * Puras, Lenôtre, Roth Bros. 8 – SHAREHOLDERS’ MEETING – January 21, 2013

ON-SITE SERVICES - ORGANIC GROWTH On-site Services + 6.3% 9 – SHAREHOLDERS’ MEETING – January 21, 2013

ON-SITE SERVICES ORGANIC GROWTH BY CLIENT SEGMENT Corporate + 9.3%  Double-digit growth in Latin America, Asia and Remote Sites  Favorable impact from Olympics and Rugby World Cup Health Care and Seniors + 2.7%  Modest business development Education + 4.2%  Solid performance in North America 10 – SHAREHOLDERS’ MEETING – January 21, 2013

ON-SITE SERVICES CONTRIBUTION FROM FACILITIES MANAGEMENT SERVICES (% of revenues) 18% 26% FY 2005 FY 2012 Three times the rate of growth of Foodservices 11 – SHAREHOLDERS’ MEETING – January 21, 2013

GROWTH INDICATORS Client Existing Business retention site growth development 7.6% 7.4% 94.1% 94% 4.3% 3.4% FY 2011 FY 2011 FY 2011 FY 2012 FY 2012 FY 2012 12 – SHAREHOLDERS’ MEETING – January 21, 2013

ORGANIC GROWTH BENEFITS AND REWARDS SERVICES Issue Volume Revenues 756 14.7 717 + 10.1% 13.7 + 8.5% millions billions millions of euro billions of euro of euro of euro ORGANIC ORGANIC GROWTH GROWTH FY 2011 FY 2011 FY 2012 FY 2012 negative exchange rate effect 13 – SHAREHOLDERS’ MEETING – January 21, 2013

VIDEO « EMERGING COUNTRIES » 14 – SHAREHOLDERS’ MEETING – January 21, 2013

FINANCIAL PERFORMANCE FISCAL 2012 15 – SHAREHOLDERS’ MEETING – January 21, 2013

CONSOLIDATED RESULTS GROWTH GROWTH FY 2011 FY 2012 millions of euro Growth at current Growth at constant millions of euro exchange rates exchange rates Revenues 16,047 + 13.6% + 10.9% 18,236 Operating profit 853 + 15.4% + 13.6% 984 16 – SHAREHOLDERS’ MEETING – January 21, 2013

INCREASED OPERATING PROFIT millions of euro In line with objectives Accounting adjustment for UK 984 pensions 958 853 + 10.6% CONSTANT EXCHANGE RATES FY 2011 FY 2012 Operating 5.3% 5.4% 5.3% margin Exchange rates 17 – SHAREHOLDERS’ MEETING – January 21, 2013

CONSOLIDATED RESULTS GROWTH GROWTH FY 2011 FY 2012 Growth at current Growth at constant millions of euro millions of euro exchange rates exchange rates Revenues 16,047 + 13.6% + 10.9% 18,236 Operating profit 853 + 15.4% + 13.6% 984 Net financial expense (147) (166) (250) Income tax expense (286) Effective tax rate 35.4 % 34.9 % Non-controling 35 43 interests/Associates Group net income 451 525 + 16.4% + 14.0% 18 – SHAREHOLDERS’ MEETING – January 21, 2013

EARNINGS PER SHARE + 18% compared to FY 2011 € 3.48 € 2.95 € 2.64 FY 2010 FY 2011 FY 2012 19 – SHAREHOLDERS’ MEETING – January 21, 2013

CONSISTENT FREE CASH FLOW GENERATION millions of euro 753 683 660 448 FY 2009 FY 2010 FY 2011 FY 2012 20 – SHAREHOLDERS’ MEETING – January 21, 2013

FREE CASH FLOW millions of euro 98 263 Others 576 Increase in Net Debt 683 Liquidités Générées par les Opérations Acquisitions Free Cash Flow 272 Dividends/Share repurchases 21 – SHAREHOLDERS’ MEETING – January 21, 2013

CONSOLIDATED BALANCE SHEET millions of euro 2011 2011 2012 2012 Non-current assets 5,862 Shareholders’ equity 2,535 6,888 3,034 Current assets Non-controlling 3,477 30 3,842 35 excluding cash interests Financial assets Benefits and 622 Non-current liabilities 2,946 609 3,421 Rewards Services Cash 1,448 Current liabilities 5,898 1,451 6,300 11,409 11,409 Total assets 12,790 Total liabilities 12,790 Net debt 376 639 Net debt ratio 15% 21% (net debt equity) 22 – SHAREHOLDERS’ MEETING – January 21, 2013

PARENT COMPANY FISCAL 2012 23 – SHAREHOLDERS’ MEETING – January 21, 2013

CAPITAL STRUCTURE AS OF AUGUST 31, 2012 Bellon SA 37.7% Employees 1.1% First Eagle Investment Management 3.6% 24 – SHAREHOLDERS’ MEETING – January 21, 2013

APPROPRIATION OF PARENT COMPANY EARNINGS € million Fiscal 2012 results 340 Retained earnings as of August 31, 2012 801 Dividends - Fiscal 2012 250 Retained earnings 891 25 – SHAREHOLDERS’ MEETING – January 21, 2013

INCREASE IN THE DIVIDEND Number of shares with dividend rights: 157,132,025 1.59 € * Dividend per share 250m € * Distribution 07/08 08/09 09/10 10/11 11/12 07/08 08/09 09/10 10/11 11/12 * Submitted for approval at General Shareholders Meeting * Soumis à l’approbation de l’Assemblée Générale 26 – SHAREHOLDERS’ MEETING – January 21, 2013 26

COMPENSATION OF THE MEMBERS OF THE BOARD OF DIRECTORS (gross amount before tax) Including Compensation* Directors ’ fees** TOTAL 3,933,939 728,120 * Total includes all forms of compensation paid for positions held in Bellon SA, Sodexo SA or Sodexo Group companies. ** including 202,000 € paid by Bellon SA 27 – SHAREHOLDERS’ MEETING – January 21, 2013

CHAIRMAN’S COMPENSATION (gross amount before tax) Pierre Bellon  Sodexo directors ’ fees 52,680 €  Bellon SA directors ’ fees 200,000 €  Fixed compensation, Bellon SA 70,000 € 28 – SHAREHOLDERS’ MEETING – January 21, 2013

CHIEF EXECUTIVE OFFICER COMPENSATION (gross amount before tax) 2,293,935 € Michel Landel Including:  Fixed compensation 933,400 €  Variable compensation * 1,358,149 €  In-kind benefits 2,386 € * Variable compensation represents the bonus paid for Fiscal 2011 plus travel indemnities 29 – SHAREHOLDERS’ MEETING – January 21, 2013

EXECUTIVE COMPENSATION (gross amount before tax) 8 Executive Committee members (Aug. 31, 2012) 8,841,445 € including:  Fixed compensation 4,155,722 €  Variable compensation * 4,655,481 €  Retirement benefits 30,242 € * Variable compensation represents the bonus paid for Fiscal 2011 plus travel indemnities 30 – SHAREHOLDERS’ MEETING – January 21, 2013

STOCK OPTIONS AS OF AUGUST 31, 2012 Unexercised: 6.8 million stock options (4.3% of the capital)  Granted to 550 Group executives  Exercise dates between 2013-2018  Exercise prices from € 34 to € 55 Depuis 2007, options include a performance condition Achievement of annual average growth of 6% of Group net income over three years 31 – SHAREHOLDERS’ MEETING – January 21, 2013

SHARE PERFORMANCE FISCAL 2012 32 – SHAREHOLDERS’ MEETING – January 21, 2013

SHARE PERFORMANCE Since the initial listing in 1983 SHARE PRICE multiplied by 41 Growth more than 4.4 times higher than that of CAC 40 33 – SHAREHOLDERS’ MEETING – January 21, 2013

VARIATION OF SODEXO SHARE PRICE DURING FISCAL 2012 COMPARED TO CAC 40 +20.6% 62.87 € +4.5% 3,413.07 points 34 – SHAREHOLDERS’ MEETING – January 21, 2013 34

VIDEO « COO » 35 – SHAREHOLDERS’ MEETING – January 21, 2013

MESSAGE FROM SODEXO’S CHIEF EXECUTIVE OFFICER 36 – SHAREHOLDERS’ MEETING – January 21, 2013

■ Positioning at the heart of societal changes ■ A context favorable to outsourcing ■ Unsurpassed development in the emerging countries 37 – SHAREHOLDERS’ MEETING – January 21, 2013

ACCELERATE OUR ACTIONS ■ Become the leader in Quality of Life Services ■ Make Sodexo a global brand symbolizing growth ■ Evolve from a culture of cost to a culture of value creation ■ Adapter our organization to the globalization of our markets 38 – SHAREHOLDERS’ MEETING – January 21, 2013

CHAIRMAN’S REPORT 39 – SHAREHOLDERS’ MEETING – January 21, 2013

EXTERNAL AUDITORS’ REPORT 40 – SHAREHOLDERS’ MEETING – January 21, 2013

Q & A 41 – SHAREHOLDERS’ MEETING – January 21, 2013

RESOLUTIONS TO BE VOTED UPON BY THE SHAREHOLDERS 42 – SHAREHOLDERS’ MEETING – January 21, 2013

ANNUAL SHAREHOLDERS’ MEETING Resolutions presented at the Ordinary Meeting 43 – page 43 SHAREHOLDERS’ MEETING – January 21, 2013