Fiscal 2021 Universal Registration Document

18. FINANCIAL COMMITMENTS

18.1 Engagements donnés par Sodexo S.A.

Financial guarantees to third parties concern:

• guarantees for loans granted to Sodexo S.A. subsidiaries;
• guarantees related to reverse factoring programs set up by Sodexo S.A. subsidiaries, capped at 580 million euro (of which 87 million euro was guaranteed as of August 31, 2021 ); and
• a 1,802 million euro guarantee given during the year for a commercial paper program.

The leases for the Group’s corporate headquarters in Issy-les-Moulineaux increased commitments for office leases by 16 million euro.

Other commitments notably include the guarantee issued by Sodexo S.A. in October 2012 to cover Sodexo UK’s retirement plan obligation in the United Kingdom (i.e., until October 2024). This guarantee was issued to the plan trustee for a maximum 100 million pounds Sterling with a 12-year term.

18.2 Commitments received by Sodexo S.A.

Commitments received mainly correspond to counter-guarantees by Sodexo, Inc. of Sodexo S.A’s financial borrowings, which decreased due to the reimbursement of the borrowings during the year.

18.3 Financial instrument commitments

The ongoing commitments as of the end of the year were as follows:

Sodexo S.A. may use derivative financial instruments in order to hedge its exposure to volatility in interest and currency exchange rates.