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ANNUAL REPORT 2006-2007

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18<br />

> THE QUALITY OF LIFE ARCHITECT EXPERIENCING AND SHARING QUALITY OF LIFE<br />

> Strategy<br />

Zoom<br />

COUNTRIES<br />

1<br />

THE CHINESE MARKET<br />

1.3 BILLION<br />

INHABITANTS,<br />

450 MILLIONS<br />

OF WHOM LIVE<br />

IN URBAN AREAS<br />

80 MILLION ARE<br />

CONSIDERED “MIDDLE<br />

CLASS,”<br />

A NUMBER WHICH WILL<br />

GROW TO<br />

700 MILLION BY 2020<br />

10%<br />

AVERAGE <strong>ANNUAL</strong> GNP<br />

GROWTH OVER THE LAST<br />

20 YEARS<br />

ESTIMATED 8%<br />

GROWTH OVER THE NEXT<br />

10 YEARS<br />

p Source: Sodexo<br />

> SODEXO IN CHINA<br />

The most populous country on earth, which is now experiencing the world’s most<br />

rapid economic growth, has naturally attracted the Group’s attention. In 1995,<br />

Sodexo won its fi rst Foodservices and cleaning contract with the American<br />

International School in Shanghai. From 1995 to 2001, Sodexo focused on developing<br />

the segments serving foreign companies and international schools and widened<br />

its range of services. In 2002, Sodexo signed its fi rst Foodservices contract<br />

with a Chinese company, Haier (Qingdao), followed by its fi rst public contracts,<br />

to become the uncontested leader in the Chinese market.<br />

At the same time, the Group has been expanding its Service Vouchers and Cards<br />

business. In May 1999, it obtained the fi rst license delivered by the city of Shanghai<br />

to manage fringe benefi ts using a Meal Pass. In 2001, it launched the universal<br />

Meal Pass for holiday periods (Moon Festival and Chinese New Year), in 2003,<br />

the Loyalty Pass for shopkeepers and in <strong>2006</strong>, the Leisure Pass for companies<br />

looking for ways to motivate their employees.<br />

Sodexo is also the fi rst foreign-based company to be awarded the “<strong>2007</strong> Food<br />

Service Excellence” prize for its commitment to promoting employment and<br />

the sustainable development of the local economy.<br />

INDICATOR<br />

> Food and Facilities Management services<br />

• Average growth rate over the last 5 years: 26%.<br />

• 13,000 employees in 24 cities, that represent<br />

25%-30% of China’s urban population (Beijing,<br />

Dalian, Dongguan, Foshan, Guangzhou, Hangzhou,<br />

Huizhou, Jiangmen, Jiaxing, Nanjing, Qingdao,<br />

Qingyuan, Shanghai, Shenyang, Shenzhen, Suzhou,<br />

Tangshan, Tianjin, Wuhan, Wuxi, Xiamen, Yangzhou,<br />

Zhongshan, Zhuhai).<br />

• 500 sites, including 88 new contracts in Fiscal <strong>2007</strong>.<br />

Among our new clients:<br />

The Independent Schools Foundation of<br />

Hong Kong has outsourced all its Food and<br />

Facilities Management services to Sodexo and<br />

UBS its soft services at nine sites (Beijing, Shanghai,<br />

Guangzhou, Shenzhen).<br />

Tianjin Faw Xiali Automotive and Tianjin Faw Toyota<br />

Motor in Tianjin, GE China Technology Center,<br />

the headquarters of Unilever China and Henkel<br />

China in Shanghai have entrusted their Foodservices<br />

to Sodexo.<br />

> Service Vouchers and Cards (Shanghai)<br />

• Average growth rate in the last 5 years: 18%.<br />

• 12,204 clients.<br />

• 1,000,000 benefi ciaries.<br />

• 3,500 affi liated companies.<br />

Among our new clients:<br />

China Netcom and Shanghai Mobile Communications<br />

have adopted the Sodexo Meal Pass.

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