Registration Document

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Consolidated information
Notes to the Consolidated Financial Statements
4.29 Subsequent events
On September 6, 2011, Sodexo acquired 100% of
Puras do Brasil, the no. 2 provider of On-site Service
Solutions in Brazil. Puras do Brasil has annual
revenues of approximately 500 million euro and
22,000 employees spread over more than 1,300 sites
nationwide.
On September 22, 2011, Sodexo closed the
acquisition of Lenôtre, after receiving the approval
of the competition authorities. The acquisition
of this French company will enable Sodexo to
grow its portfolio of Prestige businesses in France
and globally, enhancing its savoir faire in luxury
gastronomy and strengthening its client offering.
Valuation of the assets, including intangible assets,
and liabilities as of the acquisition dates is now in
progress.
On November 8, 2011, Sodexo reached agreement in
the USA to acquire 100% of Roth Bros, a company
Sodexo Registration Document Fiscal 2011
providing technical Facilities Management services,
with a broad national coverage across the United
States. Founded in 1923, Roth Bros designs,
manages and delivers solutions in HVAC, facilities
automation, monitoring, and energy and fluids
maintenance. Roth Bros has annual revenues of
around 100 million U.S. dollars.
In conformity with new regulations in effect in the
United Kingdom, the Group decided at the end of
October to calculate future price indexation using the
consumer price index (CPI), thus replacing the retail
price index, in determining retirement benefits
that Sodexo UK will be required to pay to certain
members of its retirement plan. As of the end of
October 2011, the retrospective effect on vested rights
already accumulated in the plan by the members
affected by this change will result in a decrease in
the retirement obligation recorded in the balance
sheet. The amount of this decrease is currently being
evaluated. The offset of this decrease in liabilities
will be a favorable adjustment to operating profit.
5. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICY
5.1 Exposure to foreign exchange and
interest rate risk
Because Sodexo has operations in 80 countries,
all components of the financial statements are
influenced by foreign currency translation effects,
and in particular by fluctuations in the U.S. dollar.
However, exchange rate fluctuations do not generate
any operational risk, because each of the Group’s
subsidiaries invoices its revenues and incurs its
expenses in the same currency.
Sodexo SA uses derivative instruments to manage the
Group’s exposure to interest rate and foreign exchange
rate risk.
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The policies approved by the Board of Directors,
the Chief Executive Officer and the Chief Financial
Officer are designed to prevent speculative positions.
Further, under these policies:
• substantially all borrowings must be at fixed rates
of interest, or converted to fixed-rate using hedging
instruments;
• in the context of financing policy, foreign exchange
risk on loans to subsidiaries must be hedged;
• the maturity of hedging instruments must not
exceed the maturity of the borrowings they hedge.