Sodexo Group Presentation November, 2016 FORWARD-LOOKING - PowerPoint PPT Presentation

Sodexo Group Presentation November, 2016

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 update them. Alternative Performance Measures have been marked with an * please refer to section 7 for definitions (from slide 56). 2 – Sodexo Overview November, 2016

CONTENTS 1. SODEXO AT A GLANCE 2. FISCAL 2016 3. OUTLOOK 4. SHAREHOLDERS & INVESTOR RELATIONS 5. SHARE PERFORMANCE 6. ALTERNATIVE PERFORMANCE MEASURE DEFINITIONS APPENDICES 3 – Sodexo Overview November, 2016

1 SODEXO AT A GLANCE 4 – Sodexo Overview November, 2016

SODEXO AT A GLANCE SODEXO: KEY FACTS  Founded in 1966 by Pierre Bellon € 20.2 bn Revenues  Main Shareholder at 31/08/2016 : > Bellon S.A 39.6% of capital (54.8% of voting rights) 425,000 employees Strong 19 th largest employer Investment worldwide Grade Rating S&P A million consumers 75 served daily 80 countries € 16.0 bn Market capitalization (August16) 5 – Sodexo Overview November, 2016

SODEXO AT A GLANCE AN ENGAGED WORKFORCE 404,705 employees trained ( 38% of women in Comex 54% of total workforce) 6 – Sodexo Overview November, 2016

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 engaged developing 80 countries to self-finance its teams economies development 7 – Sodexo Overview November, 2016

SODEXO AT A GLANCE WORLD LEADER IN QUALITY OF LIFE SERVICES An unrivaled array of services : ON-SITE BENEFITS AND PERSONAL AND SERVICES REWARDS SERVICES HOME SERVICES 3 service categories: 8 client segments: 5 service categories:  Corporate  Childcare  Employee Benefits  Energy and  In-Home Senior  Incentives and Ressources (Remote Care Recognition Sites)  Concierge services  Defense  Employee mobility  Justice and Expense  Sports & Leisure management  Health Care & Seniors  Public Benefits  Education  Gift boxes and cards 8 – Sodexo Overview November, 2016 page 8

SODEXO AT A GLANCE FISCAL 2016 REVENUE SPLIT: € 20.2 bn Revenue Distribution by activity and client segment by geographic region 96% On-site Services 31% Continental North Corporate Europe America 7% Remote Sites 30% 43% 4% Defense 4% Sports and Leisure 3% Justice Services 19% Health Care 6% Seniors 22% Education United Rest of Kingdom the World and Ireland 4% 16% Benefits and Rewards Services 11% Issue volume of € 16.3 billion 9 – Sodexo Overview November, 2016

SODEXO AT A GLANCE SODEXO’S VALUE PROPOSITION Maximizing value added with a unique and differentiating offer…  MANAGE DELIVER DESIGN … adapted to client priorities : Increase people Enhance processes Improve infrastructure satisfaction, motivation quality, efficiency and equipment utilization, and effectiveness and productivity reliability and safety To deliver  Enhanced Quality of life to client employees  Support for client development and achievement of objectives 10 – Sodexo Overview November, 2016

SODEXO AT A GLANCE INTEGRATED QUALITY OF LIFE SERVICES OFFER 11 – Sodexo Overview November, 2016

SODEXO AT A GLANCE KEY GROWTH DRIVERS SEGMENT SPECIFIC OVERALL  A global economy in which capital, information, HEALTH CARE, SENIORS AND EDUCATION talents and trade are continuously interconnected  Demographic change (population growth,  life expectancy, expanding number of Rapid urbanization and development of megacities students, etc.)  Emerging market demand and a rising middle REMOTE SITES class  Oil, gas and mining projects due to  Increased public deficits that create pressure to energy/raw material prices/demand find savings through outsourcing BENEFITS AND REWARDS  Development of new information and  Battle for talent, work/life balance, communication technologies welfare policies  The growing influence of consumers seeking  Employee retention and motivation wellbeing, quality of life, improved health and personalized service  Environmental issues  Outsourcing and consolidation of multiple service providers 12 – Sodexo Overview November, 2016

SODEXO AT A GLANCE BENEFITS AND REWARDS: THE PASS CYCLE Payment of the value SODEXO PASS CLIENTS Delivery of the Pass Presentation Distribution Reimbursement of the Pass for of the Pass of the value reimbursement BENEFICIARIES AFFILIATED MERCHANTS Use of the Pass 13 – Sodexo Overview November, 2016

SODEXO AT A GLANCE SODEXO’S DEVELOPMENT - 50 years of history 2005 1966 2016 1983 Sophie Bellon Michel Landel Sodexo IPO of Sodexo on becomes becomes CEO, founded 1971 - 1978 Paris stock exchange Chairwoman Pierre Bellon by Pierre International 1985 - 1993 of the Board remains Chairman Bellon expansion of Directors of the Board of starts International 2009 Directors development: Sodexo reviews Service Americas, Russia, its strategic Vouchers South Africa & Asia positioning launched 1998-2001 2007-2010 1995 2011-2013 Sodexo Marriot Services 2014-2016 Gardner Merchant UK VR Brazil Acquisitions US Motivcom UK Puras do Brasil Partena Sweden Score Groupe and Crèche Inspirus US Brazil Attitude France PSL UK Lenôtre France 2001 Zehnacker Germany Roth Bros US Comfort Keepers & Sogeres France MacLellan India Circles US Wood Dining Services US RKHS India 14 – Sodexo Overview November, 2016

SODEXO AT A GLANCE REGULAR AND SUSTAINED PERFORMANCE Operating Profit (in € millions) Revenues (in € millions) 1 200 +6.1% CAGR over 10 years 20 000 +4.7% CAGR over 10 years 1 000 800 15 000 600 10 000 400 200 5 000 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Net Income (in € millions) 800 Operating Cash flow (in € millions) +7.0% CAGR over 10 years 1 200 700 +6.8% CAGR over 10 years 600 1 000 500 800 400 600 300 400 200 200 100 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 15 – Sodexo Overview November, 2016

SODEXO AT A GLANCE REGULAR AND SUSTAINED SHAREHOLDER RETURNS Dividend (in € ) EPS (in € ) 5 5 +8.5% CAGR over 10 years +7.4% CAGR over 10 years 4,5 4 4 3,5 3 3 2,5 2 2 1,5 1 1 0,5 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 16 – Sodexo Overview November, 2016

2 FISCAL 2016 17 – Sodexo Overview November, 2016

HIGHLIGHTS OF FISCAL 2016 FY 16 Yet another year of solid performance: Further Operating Strong balance Operating profit 1 Revenue profit margin 1 sheet growth objective organic growth* improvement achieved 11% +2.5% +8.2% + 30 BPS Gearing* Segmentation Consumer focus Recognized enhancing Developing driving innovative Corporate business M&A pipeline digital solutions Responsibility opportunities 1 Before Fiscal 2016 exceptional expenses and currency effect 18 – Sodexo Overview November, 2016

ANOTHER YEAR OF SOLID PERFORMANCE FY 16 Free cash flow* EPS Gearing* € 595m € 4.77, +5.8% 11% € 2.40 Proposed dividend per share +9.1% Payout ratio 1 ~50% € 371 million Total payout 1 € 300 million Share repurchase program ~1.9% of capital As per August 31 2016 1 Payout ratio: Dividend/EPS before non recurring items* = 50.3%; Dividend/Reported EPS = 57% 19 – Sodexo Overview November, 2016

SEGMENTATION IS ENHANCING BUSINESS FY 16 OPPORTUNITIES  Clients seeking productivity  Driving segment development and global footprint in white spaces Melaleuca Women’s prison in Australia 20 – Sodexo Overview November, 2016

SEGMENTATION IS ENHANCING FY 16 BUSINESS OPPORTUNITIES  Facilities management services contract extensions and development  Geographic extensions of current client relationships Greater client intimacy  More agile management of large global accounts  More services integration between Benefits and Rewards and On-site For instance in Corporate Services:  Danone and Unilever in Indonesia, Huawei in Romania, Colombia and Malaysia, Pfizer in 12 countries in Asia, global airport lounge offer  Bancolombia Facilities Management and Benefits and Rewards Services 21 – Sodexo Overview November, 2016

INCREASE THE VALUE WE BRING THROUGH INNOVATION FY 16 LEVERAGE INNOVATION CULTURE Share Take part Develop Innovate your ideas in a contest your ideas with partners eNOVhub eNOVcontest eNOVprogram Open Innovation A web platform allowing The eNOVchallenge was only Innovate continuously and Think out of the box everyone to share, like, support the first of many internal and/or transform your ideas into with our network of partners: and enrich ideas with external innovation contests prototypes start-ups, incubators and innovative communities that will come suppliers ENGAGE THE COLLECTIVE INTELLIGENCE OF SODEXO’S ECOSYSTEM TO TRANSFORM IDEAS INTO VALUE 22 – Sodexo Overview November, 2016