| AUGUST 31, 2023 | FAIR VALUE LEVEL | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| FINANCIAL LIABILITIES (in million euros) | CATEGORY | NOTE | CARRYING | FAIR | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL | |
| Bond issues(1) | Financial liabilities at amortized cost | 12.4 | 5,501 | 5,018 | — | — | — | — | |
| Other borrowings | Financial liabilities at fair value (through equity)(2) | 12.4 | 36 | 36 | 36 | — | — | 36 | |
| Financial liabilities at amortized cost | 12.4 | 15 | 15 | — | — | — | — | ||
| Trade and other payables | Financial liabilities at amortized cost | 4.3 | 4,540 | 4,540 | — | — | — | — | |
| Vouchers payable(3) | Financial liabilities at amortized cost | 3.2 | 3,509 | 3,509 | — | — | — | — | |
| Derivative financial instrument liabilities | Derivative financial instrument | 12.5 | 41 | 41 | — | 41 | — | 41 | |
(1) Fair value is calculated on the basis of listed bond prices as of August 31, 2023.
(2) Put options over non-controlling interests.
(3) Liabilities from Benefits & Rewards Services activity (Pluxee) reclassified in Liabilities directly associated with assets held for sale or for distribution (see note 3.2).
| AUGUST 31, 2022 | FAIR VALUE LEVEL | |||||||
|---|---|---|---|---|---|---|---|---|
| FINANCIAL LIABILITIES (in million euros) | CATEGORY | NOTE | CARRYING AMOUNT | FAIR VALUE | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL |
| Marketable securities | Cash equivalents | 12.2 | 524 | 524 | 21 | 503 | — | 524 |
| Restricted cash and financial assets related to the Pluxee (Benefits & Rewards Services activity) | Financial assets at amortized cost | 12.3 | 960 | 960 | — | — | — | — |
| Financial assets at fair value through profit or loss | 12.3 | 297 | 297 | 297 | — | — | 297 | |
| Trade and other receivables | Financial assets at amortized cost | 4.3 | 5,068 | 5,068 | — | — | — | — |
| Other financial assets | Financial assets at fair value through other comprehensive income | 12.3 | 863 | 863 | — | — | 863 | 863 |
| Financial assets at amortized cost | 12.3 | 154 | 154 | — | — | — | — | |
| Financial assets at fair value through profit or loss | 12.3 | 62 | 62 | — | — | 62 | 62 | |
| Derivative financial instrument assets | Derivative financial instrument | 12.5 | 2 | 2 | — | 2 | — | 2 |
| AUGUST 31, 2022 | FAIR VALUE LEVEL | |||||||
|---|---|---|---|---|---|---|---|---|
| FINANCIAL LIABILITIES (in million euros) | CATEGORY | NOTE | CARRYING AMOUNT | FAIR VALUE | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL |
| Bond issues(1) | Financial liabilities at amortized cost | 12.4 | 5,600 | 5,113 | 5,113 | — | — | 5 113 |
| Bank borrowings | Financial liabilities at amortized cost | 12.4 | 1 | 1 | — | — | — | — |
| Other borrowings | inancial liabilities at fair value (through equity)(2) | 12.4 | 79 | 79 | 79 | — | — | 79 |
| Financial liabilities at amortized cost | 12.4 | 29 | 29 | — | — | — | — | |
| Trade and other payables | Financial liabilities at amortized cost | 4.3 | 5,230 | 5,230 | — | — | — | — |
| Vouchers payable | Financial liabilities at amortized cost | 3.2 | 3,509 | 3,509 | — | — | — | — |
| Derivative financial instrument liabilities | Derivative financial instrument | 12.5 | 35 | 35 | — | 35 | — | 35 |
(1) Fair value is calculated on the basis of listed bond prices as of August 31, 2022.
(2) Put options over non-controlling interests.
There were no transfers between the various fair value hierarchy levels between Fiscal 2022 and Fiscal 2023.
FAIR VALUE LEVEL 3
MEASUREMENT OF BELLON SA SECURITIES
The Group holds, through its wholly-owned subsidiary Sofinsod, a 19.61% stake in Bellon SA, a company that controls Sodexo S.A. with 42.75% of its shares and 57.93% of its voting rights exercisable on August 31, 2023. This shareholding does not give the Group significant influence over Bellon SA, as voting rights attached to Bellon SA shares cannot be exercised by Sofinsod, in accordance with the provisions of article L.233-31 of French Code de commerce.
In accordance with IFRS 9, the Group assessed this investment at its fair value, determined in accordance with IFRS 13. The valuation of the fair value of the investment depends, among other things, on the revalued Net Asset Value (NAV) of Bellon SA which has limited debt and holds no assets other than shares of Sodexo S.A. as of August 31, 2023. These shares are valued at their closing share price for the calculation of the NAV of Bellon SA.
The bylaws of Bellon SA include a clause which restricts the sale of Bellon SA shares to non-shareholder third parties, subject to the prior approval of its Supervisory Board. The Pierre and Danielle Bellon Family controls 72.6% of the family holding company Bellon SA. Mr. and Mrs. Pierre Bellon and their children entered into an agreement in June 2015 to prevent their direct descendants from freely disposing of their Bellon SA shares for 50 years. Bellon SA’s only asset as of August 31, 2023, is its holding in Sodexo S.A.; Bellon SA has no intention of selling this holding to a third party.
These specific characteristics imply very limited liquidity for the shares that Sofinsod holds in Bellon SA. The valuation method used by management (Level 3 of the hierarchy defined by IFRS 13) incorporates this illiquidity on the one hand, as well as all of the characteristics of the holding’s ownership structure, on the other hand. This method results in a discount to net asset value on Bellon SA estimated at 40% as of August 31, 2023, and August 31, 2022.
