Registration Document

P ◀ CONTENTS ▶
At the same time, however, the economic situation
could lead clients to increase outsourcing in order
to achieve cost savings. The Remote sites activity is
dependent on the petroleum and mining industries.
Lastly, unfavorable economic conditions could result
in a lengthening of payment times or impair the
solvency of Sodexo’s clients.
5.7 Acquisition risk
Sodexo has acquired and may in the future acquire
businesses. These acquisitions will enhance earnings
only if Sodexo can successfully integrate the acquired
businesses into its management organization,
purchasing operations, distribution network and
information systems. The Group’s ability to integrate
acquired businesses may be adversely affected by
6. RISK COVERAGE
6.1 Risk coverage
Insurance policies
Sodexo’s general policy is to transfer non-retained
risk, especially intensity risks (1) to the insurance
market. Insurance programs are contracted with
reputable insurers.
The principal insurance programs relate to:
• liability insurance, which covers against personal
injury, property damage or consequential loss
caused to third parties. This category notably
includes operational, product, after-delivery and
professional liability insurance. The amounts
insured depend on the nature of Sodexo’s
activities, the country where it operates, and the
extent of cover available in the insurance market;
• property insurance, which mainly covers the
risk of fire and explosion, water damage, natural
disasters, and (in some countries) acts of terrorism;
(1) See glossary for definition.
.
Consolidated information 06
Supplemental information
factors that include failure to retain management
and sales personnel, the size of the acquired business
and the allocation of limited management resources
among various integration efforts. In addition, the
benefits of synergies expected at the time of selecting
acquisition candidates may fall short of those
originally anticipated. Difficulties in integrating
acquired businesses, as well as liabilities or adverse
operating issues relating to acquired businesses,
could have a material adverse effect on our business,
operating results and financial condition.
5.8 Litigation risk
Refer to note 4.28 of the notes to the consolidated
financial statements for information on these risks.
as a general rule, the sum insured is equal to the
value of the insured property. However, some
insurance contracts cap the amount paid out under
the policy;
• workers’ compensation. In countries with no
government-provided coverage (primarily the
United States, Canada and Australia), Sodexo has
contracted workers’ compensation programs.
The cover provided under these programs complies
with the relevant legal requirements in each country.
6.2 Risk retention
Sodexo self-insures frequency risks (i.e. risks that
recur regularly).
In some countries, these retained risks relate primarily
to employer’s liability, workers compensation, thirdparty
automobile insurance and property insurance.
Outside North America, deductibles generally vary
between 50,000 euro and 150,000 euro per occurrence.
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