Fiscal 2021 Universal Registration Document

INVESTMENTS AIMED AT RE-ENERGIZING GROWTH

Building on the initial gains in operational efficiency and commercial relevance, the Group is continuing its efforts to anticipate and respond ever better to the needs of its customers and to strengthen their loyalty, around a unique portfolio of services.

The Group’s approach is to place the consumer at the heart of its model and to respond to the diversity of needs with relevant services. To do this, the Group is continuing its targeted investments around catalysts such as the deployment of a global customer relationship management tool for On-Site Services and a new Regional Marketing & Sales Distribution Center in Europe. Sodexo is also changing its operating model by developing new off-site production sites and strengthening the digitization of its services. Building on its investments, Sodexo is strengthening its go-to-market strategies and building unique relationships with its clients.

A real strategic asset for Sodexo, its purchasing and supply management is also undergoing a transformation with three major objectives: improving the cost structure, increasing efficiency and contributing to improving the Group's competitiveness; ensuring safety and quality to mitigate risk; and focusing on new consumer expectations to drive revenue growth. Since 2018, the Group has invested 40 million euro  to carry out this transformation with the goal of positioning the purchasing function as an essential business partner in the service of the Company's growth, driven in particular by investment in talents, consolidation of the approach for responsible sourcing and the digitization of systems and processes as well as data collection and analysis.

ACCELERATING THE GROUP'S TRANSFORMATION

During Fiscal 2021, the Group continued to develop new food models with the acquisition of Fooditude in the United Kingdom and of Nourish Inc. and Foodee in North America, a region where the Group also has developed The Good Eating Company to complete its service offering.

With approximately 1 billion digital transactions per year, the transformation of Benefits & Rewards Services continues in all geographical areas to deliver a personalized and simplified employee experience in a hybrid work environment. The deployment of the platform implemented in partnership with Zeta in India for a new consumer-centric approach and innovative digital payment technology continues in other countries, including Brazil, to offer a unique and holistic multi-benefit experience.

The Group has also entered into global partnerships with several main delivery platforms - Deliveroo, UberEats, Just Eat, etc. - thus enabling consumers to benefit from an extensive network of merchant partners.

In order to strengthen its position in the Employee Benefits market and pursue its digital transformation, Sodexo has also acquired a majority stake in Wedoogift , a native digital player, and thus become the leader in gift vouchers in France, with the most extensive and innovative line on the market for nearly 50,000 clients and 5 million employees.

In view of the acceleration of new consumer behaviors  and disruptions, particularly digital ones, Sodexo is entering a new period of its development. This new stage in the history of the Group marked by the acceleration of its transformation must particularly be embodied in new leadership. The Board of Directors thus ended the mandate of Denis Machuel on
September 30, 2021 and announced the search for a new Chief Executive Officer.

During this transition period, Sophie Bellon, Chairwoman of the Board of Directors, is acting  as Interim Chief Executive Officer. Organizational changes were also announced, such as the local management of the Schools and Government Services segments and the creation of a Transition Committee at Group level whose main strategic priorities are as follows:

• Boost US growth;
• Accelerate the food model transformation;
• Manage more actively the portfolio;
• Enhance the eff ectiveness of the organization.

As part of the Group’s portfolio management program, the Board of Directors has confirmed that it is necessary to accelerate the growth and diversification plans of Benefits & Rewards Services and has therefore decided to explore a number of strategic options to enhance support, focus and resources of Benefits & Rewards Services, while retaining control.

With market potential valued at 900 billion euro⁽¹⁾ and backed by a solid financial situation, family shareholding which is a guarantee of stability and long-term vision, and committed teams, Sodexo is entering this new phase with confidence.

1 On-site Services market potential, including Personal & Home Services. Sodexo estimate (market estimates are likely to evolve over time, given the growing reliability of information sources in various countries).