Universal Registration Document - Fiscal 2023

Fiscal 2023 Group Organic Growth is +11.6%.

• Sodexo (On-site Services) Fiscal 2023 solid growth resulted from the ongoing post-Covid recovery, good level of pricing to pass inflation, and acceleration in net new development contribution to the revenue. Excluding an accounting change related to the revenue recognition in one of our large contracts which impacted the fourth quarter by -2.3%, the underlying organic growth exit rate was in fact +10.4% in the fourth quarter.
• Pluxee benefited from continued sustained growth in operating revenues as a result of the solid net new development and the continuous increase in face value, and from a strong progression of the financial revenue driven by the increase in interest rates.

The Group Underlying operating profit margin increased +60 bps to 5.6%, thanks to the operating leverage from higher revenue, rigorous inflation management, and cost control. Net profit was 794 million euros, up +14.2% versus prior year. Underlying net profit reached 908 million euros, up nearly +30% compared to Fiscal 2022.

Sodexo’s client retention rate was a record 95.2%, +70 bps higher than the previous year which was already a record level. New sales development was 7%, in the 7-8% target range. New wins including cross-selling reached 1.7 billion euros up against 1.5 billion euros the previous year. As a result, the net new business signed during the year was positive at 2.2% compared to 2% in the previous year and this will contribute to Fiscal 2024 growth.

Fiscal 2023 was rich in new signatures and renewals of contracts during the year and here are some examples:

• Sodexo has strengthened its commercial relationship with SSM Health, a leading health system serving Missouri, Illinois, Oklahoma, and Wisconsin, for which Sodexo has provided services for 23 years. Effective immediately, Sodexo will transition approximately 2,000 additional employees and service 28 hospitals across four states. The extended contract covers food and nutrition and environmental services. Sodexo will address critical needs for the health system and continue to improve patient and staff satisfaction across SSM Health’s various locations;
• based on a long-term successful collaboration in more than 25 countries, Sodexo and Colgate-Palmolive have extended their global partnership for 5 more years. Sodexo will expand its delivery of integrated Facilities Management (IFM) to include 12 additional Colgate-Palmolive sites in the United States of America, increasing the global portfolio to 43 sites. With the mutual drive on Corporate Social Responsibility (CSR) and innovation, the partnership has solidified further, encompassing a joint vision for 2023 to 2027. For instance, the Sodexo Site Engagement Assessment Tool for sustainability has been implemented across 100% of the sites. The current food offer will also remain with a pilot of Modern Recipe offer intended for the NYC site;
• the Healthcare Board in Stockholm Region, one of Europe’s largest healthcare providers, renewed the contract with Sodexo AB regarding the aid equipment services in the Northern part of the county. The new contract comes into force on February 1, 2024, the agreement is for 5 years, with an option to extend for another 5 years. The contract covers, among other things, storage, counselling, testing, distribution, repair and service of aid equipment. Sodexo has worked with aid equipment in Stockholm’s Northern county since 2003. The long-term collaboration has led to the development cost-effective warehousing and improved services. 85% of the aid equipment is reused after renovation and reconditioning, which means they can arrive quickly for the benefit of new users.