The performance bonds given to clients relate to around fifteen sub-contracting contracts where the Group considers that it may be exposed to indemnity payments if it is unable to fulfill the service obligation. These bonds are subject to regular review by the management of the business unit and a provision is recorded as soon as payment under a bond becomes probable. For all other contracts with a performance bond, Sodexo considers that it can deploy the additional resources needed to avoid paying compensation under the bond.
The Group also has performance obligations to clients, but regards these as having the essential features of a performance guarantee rather than an insurance contract designed to compensate the client in the event of non-fulfillment of the service obligation (compensation is generally due only where Sodexo is unable to provide alternative or additional resources to fulfill the obligation to the client).
In practice, given its size and geographical reach, Sodexo considers itself capable of providing the additional resources required to avoid paying compensation to clients protected by such clauses.
At this time, no provision has been recorded in the consolidated statement of financial position with respect to these guarantees.
The “Other commitments” line mainly includes the 12-year guarantee given by Sodexo S.A. in October 2012 to the Trustee of the UK pension plan (i.e., until October 2024) for a maximum of 100 million pounds Sterling in order to cover Sodexo UK’s obligations in connection with the plan.
14.3.1 Principal shareholder
As of August 31, 2021 , Bellon SA held 42.75% of the capital of Sodexo and 57.25% of the exercisable voting rights.
The expense recognized in Fiscal 2021 under an assistance and advisory services contract between Bellon SA and Sodexo S.A. amounts to 3,7 million euro (1.5 million euro in Fiscal 2020).
No dividend was paid to Bellon SA from Sodexo S.A. in 2021.
The Group received dividends of 2.9 million euro from Bellon SA during Fiscal 2021 .
14.3.2 Non-consolidated companies
Other transactions with related companies comprise loans advanced, commercial transactions, and off -balance sheet commitments involving associates and non-consolidated companies.
| AUGUST 31, 2021 | AUGUST 31, 2020 | |||
|---|---|---|---|---|
| (in millions of euro) | GROSS AMOUNT | IMPAIRMENT | CARRYING AMOUNT | CARRYING AMOUNT |
| Loans | Loans AUGUST 31, 202152 |
Loans AUGUST 31, 2020— |
52 | 48 |
| OFF-BALANCE SHEET COMMITMENTS | AUGUST 31, 2021 | AUGUST 31, 2020 |
|---|---|---|
| Financial guarantees to third parties | Financial guarantees to third parties AUGUST 31, 202120 |
Financial guarantees to third parties AUGUST 31, 20201 |
| Performance bonds given to clients | Performance bonds given to clients AUGUST 31, 2021136 |
Performance bonds given to clients AUGUST 31, 2020184 |
| TRANSACTIONS | 2020-2021 | 2019-2020 |
|---|---|---|
| Revenues | Revenues 2020-2021299 |
Revenues 2019-2020296 |
| Operating expenses | Operating expenses 2020-2021(3) |
Operating expenses 2019-2020(4) |
| Financial income and expense, net | Financial income and expense, net 2020-20211 |
Financial income and expense, net 2019-20201 |
The main companies consolidated as of August 31, 2021 and presented in the table below together represent over 80% of consolidated revenues, operating profit, profit for the period attributable to equity holders of the parent, and shareholders’ equity. The other entities individually represent less than 0.6% of each of these items.
The first column shows the percentage interest held by the Group, and the second column the percentage of voting rights held by the Group. Percentage interests and percentages of voting rights are only shown if less than 97%.
Companies newly consolidated during the year are indicated by the letter “N”.
