Fiscal 2011 Results - Presentation

November 9, 2011
Fiscal 2011
Annual Results
sodexo.com

Forward-looking information
This presentation contains statements that may be considered forwardlooking
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 we assume no obligation to update them.
You are cautioned not to place undue reliance on our forward-looking
statements.
page 2

Agenda
page 3
1. Fiscal 2011 in brief
2. Financial performance
3. Analysis by activity and
by geography
4. Financial statements
5. Outlook

Solid and steady financial performance
Organic revenue
growth
Increased operating
profit
Group net
income
page 4
+ 5.2% to 16 €Billion
853 €M
+ 10.4% at constant exchange rates
451 €M
+ 10.3%
Free cash flow 660 €M
Net debt / equity
ratio
15% as of August 31, 2011

€ Billion
Revenues
Accelerating organic growth
Organic growth + 5.2%
14.7
+ 2.5%
On-site Service Solutions
+ 5.1%
15.2
page 5
+ 5.2%
16
FY 2009 FY 2010 FY 2011
Motivation Solutions
+ 6.9%

All geographic zones contributed to the
acceleration in organic growth
+ 1.8% + 1.9%
FY 09
North
America
FY 10
+ 4.3%
FY 11
On-site Service Solutions
UK & Ireland
FY 09
- 3%
- 1.7%
page 6
- 1.1%
Rest of the World
+ 11.9%
FY 09
FY 10
+ 7.5%
FY 10
FY 11
+ 15.9%
FY 11
Continental Europe
+ 0.1%
FY 09
+ 1.7%
FY 10
+ 2.9%
FY 11

USMC
(USA)
An integrated services offer driving
business development
(China)
(China)
For the third consecutive year, Sodexo was ranked 3 rd
among the world’s best outsourcing companies by the
International Association of Outsourcing Professionals ®
(IAOP ® ).
page 7
Marseilles,
France schools

Motivation Solutions
Operating profit Operating margin
Increase of 20%
36.5%
Medium-term objective achieved
page 8

Numerous innovations during the year
Gift card
“Spirit of Home” and
“Spirit of Sport” (France)
Concierge services
Microsoft
(France)
Bildungs pass
(Education)
(Germany)
Childcare
Ateliers Kid’s
(Carrefour)
page 9
Uniforme Pass
and Farmacia
(Chile)
Non-medical services
for seniors
Kaiser Permanente (USA)

Sodexo continues to invest in key
initiatives
Human
resources
●Training (Climb,
e-learning platform, etc.)
●International talent
development
●Diversity
Technical
expertise
●Deployment of new
technical platforms
●International Large
Accounts
development
page 10
High-potential
markets
●BRIC countries
●Other emerging
economies
●Personal and Home
Services

Group strategy paying off
Facilities Management services
> 25% of revenues
FY
2006
18%
page 11
FY
2011
25.4%

BRIC countries’ contribution to Group
revenues
3.0%
Sodexo number 1 in all BRIC countries
3.2%
4.1%
page 12
4.3%
5.5%
10%*
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
* Total proforma after acquisition
of Puras do Brasil

Acquisition of Puras do Brasil
(September 2011)
Sodexo becomes the leader in Brazil
in On-site Service Solutions
New entity
Approx.
1 billion € 39,000 1,700
in revenues employees sites
page 13

Strategy:
Become the global expert
in Quality of Life Services
Become the global leader in On-site Service
Solutions
Reinforce leadership in Foodservice, our traditional
activity
Become the global leader
in Motivation Solutions
Develop progressively
in Personal and Home Services
…whilst maintaining the Group’s independence
page 14

Agenda
page 15
1. Fiscal 2011 in brief
2. Financial performance
3. Analysis by activity and
by geography
4. Financial statements
5. Outlook

Financial performance
Consolidated revenue growth
€M
15,230
+ 5.4%
overall
growth
including
+ 5.2%
organic growth
FY 2010 FY 2011
page 16
16,047

Consolidated operating profit and margin
expansion
€M 771
5.1%
FY 2010
Overall growth
+ 10.6%
+ 10.4%
at constant rates
Operating margin
page 17
853
5.3%
FY 2011
In line with objectives set at beginning of fiscal year

Agenda
page 18
1. Fiscal 2011 in brief
2. Financial performance
3. Analysis by activity
and by geography
4. Financial statements
5. Outlook

On-site Service Solutions
Revenues
organic growth
+ 5.1%
* At constant currencies
page 19
Operating
profit
increase of
8.6%
*

On-site Service Solutions
Organic growth by client segment
Corporate
Health Care
and Seniors
Education
page 20
+ 2%
+ 2.6%
+ 2.3%
+ 6.7%
+ 3.5%
+ 3.4%
FY 2010 FY 2011

On-site Service Solutions
Growth indicators
Client retention
Existing site growth
Business development
(new contract wins)
page 21
94%
4.3%
7.4%

€M
On-site Service Solutions
North America
5,850
FY 2010
Revenues
+ 4.3%*
6,005
FY 2011
* Organic growth Negative exchange rate impact
Corporate + 1.8%
● Return to growth
● Ramp-up of new comprehensive solutions
contracts
● Foodservice participation levels relatively
unchanged
Health Care
and Seniors + 5.9%
● Excellent client retention
● Acceleration of cross-selling to hospitals and
Seniors
Education + 4.0%
● Higher university and school enrollment
page 22

€M
On-site Service Solutions
North America
Operating profit
281
FY 2010
+ 10.3%*
304
FY 2011
* Constant exchange rates Negative exchange rate impact
● Good cost control in accident,health and benefit plans
● Site productivity improvements
page 23
Operating margin
4.8%
FY 2010
5.1%
FY 2011

€M
On-site Service Solutions
Continental Europe
Revenues
5,289
FY 2010
+ 2.9%*
5,473
FY 2011
* Organic growth Positive exchange rate impact
Corporate + 4.4%
● Positive impact from Sodexo’s comprehensive
solutions strategic positioning
● Development in Germany, Spain and Russia
Health Care
and Seniors + 0.8%
● Outsourcing trend currently more modest in most
countries
Education + 1.2%
● Ramp-up of contracts in Sweden and Italy
page 24

€M
On-site Service Solutions
Continental Europe
Operating profit Operating margin
233
+ 5.6%*
247
FY 2010 FY 2011
FY 2010 FY 2011
* Organic growth Positive exchange rate impact
● Solid overhead cost control
page 25
4.4%
4.5%

€M
On-site Service Solutions
UK and Ireland
Revenues
1,252 1,245
FY 2010
- 1.1%*
FY 2011
* Organic growth Positive exchange rate impact
Corporate + 0.3%
● Foodservice affected by continuing difficult
economic conditions
● Ramp-up of comprehensive service solution
contracts
Health Care
and Seniors - 7.9%
● Slower decision-making by clients/prospects
● Non-renewal of a large contract in FY 2010
Education + 2.9%
● Business development at universities
page 26

€M
On-site Service Solutions
UK and Ireland
57
Operating profit Operating margin
+ 1.8%*
59
* Constant exchange rates Positive exchange rate impact
page 27
4.6%
● Improved site productivity in Health Care and Justice Services
● Initial expenses to prepare Fiscal 2012 sporting events
4.7%
FY 2010 FY 2011
FY 2010
FY 2011

€M
On-site Service Solutions
Rest of the World
2,194
FY 2010
Revenues
+ 15.9%*
2,624
FY 2011
* Organic growth Positive exchange rate impact
Corporate + 16.3%
● Increased demand following acceleration in
industrial output
● Heightened activity in mining sector
Health Care
and Seniors + 12.4%
● Continued strong development in Latin
America and China
Education + 10.7%
● Increase in Middle East and Asia
page 28

€M
On-site Service Solutions
Rest of the World
Operating profit Operating margin
70
FY 2010
+ 17.1%*
84
FY 2011
* Constant exchange rates Positive exchange rate impact
page 29
3.2%
FY 2010
3.2%
FY 2011
● Inflationary pressures offset by good cost control and productivity
improvements
● Investments maintained in high potential markets

Motivation Solutions
Issue
volume
Increase of
8.8%
(1) At constant exchange rates
Revenues Operating
profit
Organic growth
6.9%
page 30
Increase of
20%
(1) (1)

Motivation Solutions
Issue volume
€ Billion
* Organic growth
** Overall growth
Positive exchange
rate impact
12.5
FY 2010
Issue volume
+ 10%**
+ 8.8%*
● Regular growth momentum
page 31
13.7
FY 2011
Latin America
6.2
5.4
+ 12.2%*
FY 2010
Europe and Asia
7.1
FY 2010
+ 6.2%*
FY 2011
7.5
FY 2011

Motivation Solutions
Revenues
€M
* Organic growth
Positive exchange
rate impact
663
FY 2010
Revenues
+ 6.9%*
● Solid development and higher interest rates in Latin
America
● Slight upturn in Europe
page 32
717
FY 2011
Latin America
325
FY 2010
Europe and Asia
337
340
+ 0.4%*
FY 2010
+ 13.6%*
377
FY 2011
FY 2011

€M
Motivation Solutions
Operating profit
Operating profit Operating margin
215
FY 2010
+ 20%*
262
FY 2011
* At constant exchange rates Positive exchange rate impact
● Operational leverage: with growth and productivity improvements
Medium term objective achieved in Fiscal 2011
page 33
32.4%
FY 2010
36.5%
FY 2011

Agenda
page 34
1. 2010-2011 key figures
2. Financial performance
3. Analysis by activity and
by geography
4. Financial statements
5. Outlook

Financial statements
Evolution of consolidated results
In millions of €
Revenues
Operating profit
Operating margin
Financial expense
Associated companies
Income tax expense
Effective tax rate
Non-controlling interests
Group net income
FY 2010
15,230
771
5.1%
(150)
14
(205)
33%
(21)
409
page 35
FY 2011
16,047
853
5.3%
(147)
15
(250)
35.4%
(20)
451
Change at
current
exchange rates
+ 5.4%
+ 10.6%
+ 10.3%
Change
Change at
constant
exchange rates
+ 5.0%
+10.4%
+ 9.3%

Financial statements
Earnings per share
2.64 €
FY 2010
2.95 €
FY 2011
page 36
Earnings per share
+ 11.7%

1.27 €
FY 2009
Financial statements
Dividend per share
1.35 €
FY 2010
+ 8.1%
1.46 €
FY 2011
page 37
● Dividend to be proposed
for approval at the
January 23, 2012
General Shareholders’
Meeting
● Payment date:
February 6, 2012

Financial statements
Consolidated Cash Flow
In millions of €
Operating cash flow
Net capital expenditure
Change in working capital
Free Cash Flow
Net acquisitions
Change in shareholders’ equity
Change in scope
Other changes (including exchange rates)
Decrease/ (Increase) in Net Debt
page 38
FY 2010
749
(241)
245
753
(22)
(304)
(27)
(167)
233
FY 2011
747
(251)
164
660
14
(391)
2
(5)
280

Cash
Financial statements
Consolidated balance sheet
as of August 31
In millions of €
Non-current
assets
Current assets
excluding cash
Financial assets
Motivation
Solutions
Total assets
2010
6,309
3,361
578
1,527
11,775
2011
5,862
3,477
622
1,448
11,409
Shareholders’
equity
Non-controlling
interests
Non-current
liabilities
Current liabilities
Total liabilities
Net debt
Net debt ratio
page 39
2010
2,707
32
3,311
5,725
11,775
656
24%
2011
2,535
30
2,946
5,898
11,409
376
15%

Agenda
page 40
1. 2010-2011 key figures
2. Financial performance
3. Analysis by activity and
by geography
4. Financial statements
5. Outlook

Fiscal 2012 objectives
Revenues
Organic growth Acquisitions
between
5 and 8%
__
page 41
around
4%
Contribution
of recent acquisitions
(Puras do Brasil, Lenôtre, Roth Bros)

Fiscal 2012 objectives
Operating profit (1)
around
10%
(1) excluding currency effects and one-time accounting impact linked to UK pension costs
page 42

Medium term objectives
A 7% annual average revenue growth
in the medium term
An operating margin of 6.3%
in four years
page 43

Our principal strengths
In a market with significant potential
(estimated at 790 billion euro),
we have major strengths:
A vast global network operating in 80 countries with a leading
position in emerging economies
A well diversified client portfolio
A unique strategic positioning and increasingly broad
integrated service offerings
A strong culture and shared values
A rich and diverse pool of talent and an engaged workforce
A solid financial model that self-finances our development
Independence that allows us to pursue a long-term strategy
page 44

Questions
Answers
page 45

November 9, 2011
sodexo.com