Universal Registration Document - Fiscal 2023

Counterparty risk relating to client accounts receivable is immaterial. Due to the Group’s geographic and segment spread, there is no concentration of risk on past due individual receivables for which no provision has been recorded. Given the degradation in the economic environment resulting from the Covid-19 pandemic, the Group has reinforced its credit risk tracking.

Thus, the Group did not record any significant change in the impacts related to the proven financial failures of its customers during the year. The net carrying amount of overdue receivables amounts to 436 million euros, of which 28 million are beyond 6 months (1% of total net accounts receivable as of August 31, 2023, vs. 2.1% as of August 31, 2022).

The main counterparty risk is bank-related. The Group has limited its exposure to counterparty risk by diversifying its investments and

limiting the concentration of risk held by each of its counterparties. Transactions are conducted with highly creditworthy counterparties taking into consideration country risk. The Group has instituted a regular reporting of the risk spread between counterparties and of their quality.

To reduce this risk further, the Group has an international cash pooling mechanism between its main subsidiaries (with a netting facility), reducing the amount of liquidity held by third parties by concentrating it in the Group’s financial holding companies.

The maximum counterparty represents approximately 23% of the Group’s operating cash (excluding restricted cash and financial assets related to the Benefits & Rewards Services activity) and is with a banking group whose rating is A-1(19% as of August 31, 2022).

NOTE 14. OTHER INFORMATION

14.1 Subsequent events

In July 2023 the Company launched a consent solicitation process relating to its 4.4 billion euros of outstanding EUR and GBP bonds, in order to seek certain approvals and waivers to proceed with the proposed spin-off of the Benefits & Rewards Services activity (Pluxee). The proposal was approved in relation to 7 out of the 8 bonds series. The consent solicitation in relation to the 300 million euros 1.125% bonds due May 22, 2025 (the “May 2025 Bonds”) was terminated and, on October 25, 2023, the Board of Directors decided to redeem the May 2025 Bonds and to publish the make-whole redemption notice on October 26, 2023. Sodexo will redeem the total aggregate principal amount of the May 2025 Bonds outstanding on November 10, 2023.

At the end of July 2023, Sodexo signed an agreement to acquire A.H. Management, independent convenience solutions, to further accelerate its food transformation model and its development in North America. A.H. Management, the premier convenience solutions operator in the Chicago region and Southeast Wisconsin, is one of the largest operators in the Mid-West. The closing of this operation in September 2023 will extend InReach's food offerings of the Group in the fast-growing convenience market.

At the end of September 2023, the Group signed a disposal agreement for its worldwide Homecare services including mainly subsidiaries in the United States, in the United Kingdom, and in Scandinavian countries. The transaction is subject to the satisfaction of customary closing conditions and is expected to be finalized by the end of the calendar year. Pursuant to IFRS 5 “Assets held for sale and discontinued operations”, the assets and liabilities of the subsidiaries to be disposed are classified in the consolidated statement of financial position as of August 31, 2023, in “Assets held for sale or for distribution” and “Liabilities directly associated with assets held for sale or for distribution” (see note 3.2).

14.2 Commitments and contingencies

14.2.1 Sureties

Commitments arising from surety arrangements (pledges, charges secured against plant and equipment, and real estate mortgages) contracted by Sodexo S.A. and its subsidiaries in connection with operating activities during Fiscal 2023 are not material.

14.2.2 Other commitments given