Registration Document
Registration Document
Registration Document
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P ◀ CONTENTS ▶<br />
Growth in the Motivation Solutions activity depends<br />
on Sodexo’s ability to achieve geographical expansion<br />
and develop new services, and on a trusted brand and<br />
established affiliate networks.<br />
5.1.3 Competition risk<br />
At the international level, Sodexo has relatively<br />
few competitors. However, in every country where<br />
it operates, Sodexo faces significant competition<br />
from international, national, and sometimes local<br />
operators.<br />
Some existing or potential clients may opt to selfoperate<br />
their On-site Service Solutions rather than<br />
outsource them.<br />
5.1.4 dependency risk<br />
Although business depends on Sodexo’s ability<br />
to renew existing contracts and win new ones on<br />
favorable economic terms, no single client represents<br />
more than 2% of total Group revenues.<br />
In addition, no industrial supplier represents more<br />
than 3% of the total volume of the Group’s purchases.<br />
However, the Group’s ability to organize its supply<br />
systems, including purchasing and logistics,<br />
significantly affects its performance.<br />
Sodexo’s activities are not dependent on any patent<br />
or licensed brand name of which Sodexo is not the<br />
legal owner.<br />
5.1.5 Food safety risk<br />
Every day, Sodexo serves a vast number of meals<br />
worldwide, and it is committed to the safety of the<br />
food and services provided. In order to protect against<br />
eventual shortcomings in this area, Sodexo has<br />
implemented control procedures designed to ensure<br />
strict compliance with applicable regulations. Staff<br />
training and awareness policies are rolled out in all<br />
countries in which the Group operates.<br />
However, if Sodexo were to incur significant liability<br />
at one or more of its sites, this would impact its<br />
activities, operating margins and reputation.<br />
Consolidated information 06<br />
Supplemental information<br />
5.1.6 Risks related to food cost inflation<br />
and access to food commodities<br />
Sodexo could be exposed to fluctuations in food prices<br />
and difficulties in the supply of certain products. The<br />
price of food and its availability in the marketplace<br />
may vary in different regions of the world.<br />
Sodexo’s contracts include certain clauses allowing<br />
for increases in prices or menu changes, but given the<br />
delays in implementing such measures, a temporary<br />
reduction in margins cannot be ruled out. Although<br />
most contracts include a minimum increase in the<br />
pricing of products and services provided by the<br />
Group, Sodexo could be affected during inflationary<br />
periods if the contracted increase rate is lower than<br />
the actual inflation rate.<br />
5.1.7 Facilities Management risk<br />
Although Facilities Management services have long<br />
been a part of the business, Sodexo’s strategy is to<br />
accelerate the development of Facilities Management<br />
services, resulting in a larger contribution to revenue.<br />
These services require skilled personnel, particularly<br />
in the areas of building maintenance, electrical<br />
engineering, plumbing, heating and cooling systems.<br />
Therefore, the Group faces certain operational risks<br />
and has a need for qualified human resources. The<br />
Group’s capacity to grow in this highly specialized<br />
environment depends on its knowledge of these<br />
markets and its ability to find, attract, recruit and<br />
train suitable employees.<br />
5.2 Employment risk<br />
Service quality is largely dependent on the ability to<br />
attract, develop, motivate and retain the best talent,<br />
and to provide a sufficient level of training in order<br />
to raise standards continuously. For these purposes,<br />
Sodexo has developed training policies at every<br />
level of the organization, with a particular focus on<br />
prevention and safety.<br />
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