Fiscal 2022 Universal Registration Document

In line with its mission and purpose, Sodexo aims at being a leader in sustainable food and valued experiences, at every moment of life, operating globally in 2 large environments: WORK (with a focus on Corporate Services) and HEAL (Healthcare & Seniors), and with selective regional positions in LEARN and PLAY. The Group brings differentiation in the way of serving, leveraging and improving its valued services to augment consumer experience and nurture its client relationships. Its services benefit all stakeholders: consumers through a valued experience, clients through an efficient and partnering relationship, employees through the pride of having an impact, and shareholders through strong performance.

REFOCUSING OF FOOD SERVICES

To lead in the Food experience business, Sodexo will continue to upgrade and complement its traditional model with a consumer-driven approach. It will accelerate in its key markets, by boosting deployment of consumer-oriented branded offers, continuing to invest in its digital ecosystem, and by complementing its traditional food offer with new distribution channels, with CSR at the heart of the operations.

The Group intends to develop its branded offers and blockbusters such as Modern Recipe, Kitchen Works, The Good Eating Company, Nourish or Fooditude. The Group aims at reaching more than 50% of its Food revenues coming from branded offers by 2025 (vs. less than 30% to date).

Sodexo will continue to accelerate the development of advanced food models to support its Food refocus and address fast-changing needs and behaviors: multichannel, anytime anywhere, hybrid. Through more investments in Convenience, Aggregation, and Off-site production, organically and through acquisitions, Sodexo aims that in 2025, these advanced food models will represent 10% of its food revenues overall (2% today), with a positive impact on profitability. In addition, Sodexo has a strong ambition on off-site Food production with the ambition to at least doubling the number of owned culinary units (vs 20 today). The new generation culinary units aim at serving its traditional restaurants as well as its advanced models and will optimize production to increase quality standards, supported by robotization, compliance to the supply catalogue, and reduced food waste.

BEING MORE SELECTIVE IN FACILITIES MANAGEMENT SERVICES

Facilities Management Services represents 40% of Sodexo's Fiscal 2022 revenues with different weights by region. While it represents less than 30% in North America, France or Brazil, it represents more than half of the revenues in Asia Pacific, Latin America, the United Kingdom and Continental Europe.

As Sodexo is refocusing its strategy on Food Services, it will leverage Facilities Management Services to augment this experience. The Group will focus on valued services which are accretive to overall margins to provide a delightful consumer experience or bring value to clients, enabling the Group to nurture its B2B relationships.

To improve efficiency, Sodexo will reinforce its command center activities. From 16 command centers covering 30% of its accounts today, the Group aims to consolidate volumes further and increase activities of the leading command centers at a pace of +10% per year as well as shifting its client relationships to a “solutions-based model”.

A SIMPLIFIED GEOGRAPHIC ORGANIZATION

To deploy its strategy with agility, Sodexo made the decision in Fiscal 2022 to transfer end-to-end P&L management to regions and countries (effective on October 1, 2022), to bring empowerment, decision-making and reactivity closer to the ground. The On-site Services activities are regrouped into three geographic zones: North America, Europe and Rest of the World.

• In North America (U.S. and Canada), Sodexo will focus growth on the most attractive value pools, invest in advanced food models and keep focus on operational excellence and client retention.
• In Europe (UK&I, France and Continental Europe), its home markets, Sodexo will focus on profitability improvement, with a focus on retention, innovation, especially CSR driven, and scaling new models to support sustainable and profitable growth.
• In Rest of the World (Asia-Pacific, Latin America, Brazil and Middle East & Africa), which covers fast-growing markets, Sodexo has obviously a high growth potential due to demographic trends and low outsourcing rates. In Asia-Pacific, Latin America and Brazil, where the Group already has leading positions, Sodexo is focused on growth to maintain its leading position, and invest in Advanced food models.