An ADR is a registered certificate issued by a U.S. bank to represent ownership of shares or bonds issued by a publicly-traded non-U.S. company. ADRs are quoted in U.S. dollars, but the underlying shares or bonds are denominated in their original currency and are held in deposit by a bank, known as the custodian, in the country of issue. ADRs enable a non-U.S. company, subject to certain conditions, to be quoted in the United States. One Sodexo share is represented by five Sodexo ADRs. Dividends and voting rights belong to the ADR holder.
These are indicators that complement those directly derived from the financial statements and which can provide investors with additional relevant information allowing a better understanding of strategy and performance.
More details are provided in chapter 3.3.6 of this document.
Shares held in a share account maintained by the shareholder’s bank or broker. Sodexo is not informed of the shareholder’s identity. The share purchase and administration of the shares are handled by the shareholder’s bank or broker.
The client retention rate is the percentage of prior fiscal year revenue retained in this current fiscal year.
It is derived by considering prior fiscal year value for all contracts for which termination has either been given by Sodexo or received by the client, or those that have expired without renewal. This is then expressed as a percentage of total prior fiscal year revenue.
The comparable unit growth rate is the increase in revenue from sites that have contributed to consolidated revenue over two complete consecutive fiscal years (sites with activity from September 1, 2020 to August 31, 2022).
Corporate Officer is the term used in English for the French mandataire social and refers to Sodexo’s Chairwoman and CEO, and the Members of the Board of Directors.
The development rate is the annualized estimated revenue for new contracts signed during the fiscal year, divided by prior year revenue.
Any shareholder that has held registered shares for at least four years as of the end of the fiscal year including as of the dividend payment date will be eligible for a 10% dividend premium on those shares. The number of shares eligible for the dividend premium is limited to 0.5% of Sodexo’s share capital per shareholder.
Group net income divided by the weighted average number of shares outstanding.
Engagement is defined as a state of involvement in a group or a company. This concept includes the mobilization of employees for the success of the Company, their pride in belonging and their loyalty to the Company. Thus, the engagement rate is the percentage of employees who answered the nine questions relating to engagement with an average score greater than or equal to 4.5 on an increasing scale from 1 to 6 (the methodology is the same as that used in recent years with a new provider, The Happiness Index).
More details are provided in section 2.2.2 of this document.
The employee retention rate corresponds to the proportion of employees who remain with the Group during the year out of the overall average number of employees for the year.
Note that for purposes of this calculation, employees leaving the Group do not include departures related to legal requirements or regulations concerning lost contracts, transfers between Group subsidiaries or the expiration of fixed-term contracts.
