Universal Registration Document - Fiscal 2023

2. Corporate responsibility at Sodexo

2.5. Non-financial reporting

In application of IFRS5, all non-financial reporting indicators have been calculated and commented excluding Pluxee, considered as discontinued operations, except the total workforce indicators by Region in 2.5.1 and the workforce by category and gender in 2.5.2. A specific Pluxee section is integrated at the end of this section (in note 2.5.10).

2.5.1 Improving the quality of life of our employees, safely

Workforce by Zone and activity

	NUMBER OF PEOPLE			BREAKDOWN
	FISCAL 2023	CHANGE	CHANGE %	FISCAL 2023	FISCAL 2022
North America ☑	127,264	+6,090	+5.0%	29,2%	28.7%
Europe ☑	115,920	+3,034	+2.7%	26,6%	26.8%
Asia-Pacific, Latin America, Middle East and Africa ☑	176,877	+2,600	+1.5%	40,6%	41.3%
Shared structures ☑	9,534	+970	+11.3%	2,2%	2.0%
Group Headquarter ☑	346	+1	+0.3%	0,1%	0.1%
SODEXO EXCLUDING PLUXEE ☑	429,941	+12,695	+3.0%	98,8%	98.9%
PLUXEE ☑	5,218	+473	+10.0%	1,2%	1.1%
TOTAL GROUPE ☑	435,159	+13,168	+3.2%	100%	100%

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In Fiscal 2023, the number of employees excluding Pluxee increased by +3% to 429,941 at the end of the year, compared to a +11% organic growth.

The workforce is increasing in all of our Zones. This increase comes from:

in North America, the workforce rose by +5%, well below the organic revenue growth of +24.0% over the year. This evolution is mainly the result of:
- Universities headcount which increased by +11.7% (+4,240 employees), as vacancies were filled during the year, and increased sports and catering events,
- Corporate Services headcounts (+6.9%), with the acceleration of the return to the office of our client's teams,
- Seniors headcounts decrease in the United States;
in Europe, the workforce increase comes mainly from:
- Sodexo Live! in the United Kingdom, as more sport events are taking place in the stadiums,
- Healthcare & Seniors mainly in Spain and in the United Kingdom Kingdom as a result of the increase in retail activity post-Covid;
our workforce is also increasing in Asia-Pacific & Latin America due to:
- strong growth in India, on Corporate Services, Energy & Resources and Education,
- solid growth in the Energy & Resources activity and the Corporate Services in Brazil, Mexico and Chili,
- these variances are partly offset by the exit of Kuwait beginning of Fiscal 2023 (-1,170 employees).

Following the implementation of the new geographical organization the support services are mutualized in “shared structures” in each Zones.

Talent retention

	FISCAL 2023	FISCAL 2022
Retention rate for total workforce ☑	Retention rate for total workforce ☑ FISCAL 2023 80,4%	Retention rate for total workforce ☑ FISCAL 2022 79,0%
Retention rate for site managers ☑	Retention rate for site managers ☑ FISCAL 2023 85,4%	Retention rate for site managers ☑ FISCAL 2022 83,6%

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The retention rate is calculated on the basis of employees who have been with the Group for at least three months.

The net improvement of the retention rate in Fiscal 2023 is the result of, on one hand, a lower number of resignations, and, on the other hand, an increase in our workforce. The Employee Value Proposition (EVP) campaign that was launched more than a year ago is starting to show good results.

This campaign aims to reaffirm and communicate to all employees and potential employees the values of Sodexo and the benefits of working for the Group. It acts as a differentiator in the job market to attract new talents but also to retain our existing ones.

The main programs of this campaign launched in Fiscal 2022 are:

☑ Indicators verified to the level of “reasonable” assurance by KPMG.