Fiscal 2022 Universal Registration Document

3.3.2 Acquisitions and disposals for the period

Fiscal 2022 has been an active year for closing numerous disposals of non core activities and geographies:

• the On-site Services activities in Morocco, the Congo and Russia;
• Lido in France;
• non-strategic account portfolios in Australia and the Czech Republic;
• Benefits & Rewards activities in Russia in December 2021, followed by the On-site activities in the Second half;
• Benefits & Rewards sports cards in Germany, Romania and Spain;
• the Childcare activities, completed mid-March.

On the other hand, further strategic acquisitions and investments have also been made:

• in the Advanced Food Model, Sodexo has acquired Frontline Food Services and VendEdge in North America and an off-site production unit in China. Sodexo has also increased its participation in the digital food services company, Meican;
• in the GPO space, three investments have been made to strengthen the position of Entegra Europe;
• in the Healthcare segment, Sodexo has acquired a technical equipment management activity in Asia-Pacific.

Overall disposals net of acquisitions amounted to 14 million euros.

3.3.3 Condensed consolidated statement of financial position at August 31, 2022

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The increase in shareholders’ equity was due to several factors:the currency translation adjustment of some currencies such as U.S. dollar and the Brazilian real, as well as the revaluation of financial assets under IFRS 9.

As of August 31, 2022, net debt fell to 1,268 million euros, representing a gearing of 28.7%, and a net debt ratio of 1.0x, at the bottom of the target range of between 1 and 2x.

In October 2021, Sodexo reimbursed a 600 million euros bond in advance, which was due to mature in January 2022.

At year end, the Group's gross debt of 5.7 billion euros was 71%euro-denominated, 22% dollar-denominated and 6% sterling denominated, with an average maturity of 4.8 years, 96% at fixed rates and 100% covenant-free.

By the end of Fiscal 2022, Operating cash reached a total of4,474 million euros, including 960 million euros of restricted cash and 297 million euros of financial assets of Benefits & Rewards Services. The Benefits & Rewards Services activity asset to liability coverage is at 121% compared to 113% as at August 31, 2021, with operating cash of 2,764 million euros and client receivables of 1,482 million euros, compared to voucher liabilities of 3,509 million euros. The rest of the Group also had a significant operating cash position of 1,710 million euros.

At the year end, unused credit lines totaled 2.0 billion euros.

3.3.4 Subsequent events

No major events have occurred since the closing of the accounts.