Universal Registration Document - Fiscal 2024

Introduction

The following table indicates the main assumptions used for the main countries of each CGU group:

non-inclus FISCAL 20244 FISCAL 2023
DISCOUNT RATE LONG-TERM GROWTH RATE DISCOUNT RATE LONG-TERM GROWTH RATE
North America        
Canada 7.8% 2.0% 9.1% 2.0%
United States 8.0% 2.1% 9.1% 2.1%
France 7.0% 1.7% 8.9% 1.6%
United Kingdom & Ireland        
United Kingdom 8.4% 2.0% 10.2% 2.0%
Continental Europe        
Belgium 7.2% 2.0% 9.1% 2.0%
Germany 7.0% 2.0% 8.9% 2.0%
Italy 9.5% 2.0% 11.8% 2.0%
Spain 8.6% 1.8% 10.8% 1.7%
Sweden 7.3% 2.0% 8.9% 2.0%
Asia-Pacific, Middle East & Africa        
Australia 8.0% 2.5% 8.9% 2.6%
China 7.3% 2.0% 9.3% 2.2%
India 12.0% 4.0% 11.8% 4.0%
Latin America        
Chile 8.8% 3.0% 9.5% 3.0%
Colombia 11.0% 3.0% 11.3% 3.0%
Mexico 10.5% 3.0% 11.3% 3.0%
Brazil 12.1% 3.0% 13.2% 3.0%
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SENSITIVITY ANALYSIS

Sodexo has analyzed the sensitivity of goodwill impairment test results to different financial and operational scenarios:

  • the results of the goodwill sensitivity analysis indicated no probable scenario where a change in the discount rate or long- term growth rate would result in the recoverable amount of segment assets becoming less than its carrying amount. In fact, the results of the impairment testing demonstrate that even an increase of 150 basis points in the discount rate or a reduction of 150 basis points in the long-term growth rate would not result in an impairment of the assets tested for any segment;
  • the Group also performed a sensitivity analysis on the operational assumptions used in order to determine whether a 10% decrease in forecast net cash flows over the time period of the business plans prepared by management and in terminal value would result in the recognition of an impairment in the Group’s consolidated financial statements as of August 31, 2024. The results of this analysis did not indicate any risk of impairment for any of the segments.