Universal Registration Document Fiscal 2025

AUGUST 31, 2024	FRANCE	NETHERLANDS	UNITED KINGDOM	ITALY
Discount rate⁽¹⁾	Discount rate ⁽¹⁾ FRANCE 3.55%	Discount rate ⁽¹⁾ NETHERLANDS 3.35%	Discount rate ⁽¹⁾ UNITED KINGDOM 4.95%	Discount rate ⁽¹⁾ ITALY 3.55%
Salary long-term inflation rate⁽²⁾	Salary long-term inflation rate ⁽²⁾ FRANCE 2.50%	Salary long-term inflation rate ⁽²⁾ NETHERLANDS N/A	Salary long-term inflation rate ⁽²⁾ UNITED KINGDOM 3.50%	Salary long-term inflation rate ⁽²⁾ ITALY N/A
General long-term inflation rate⁽³⁾	General long-term inflation rate ⁽³⁾ FRANCE 2.00%	General long-term inflation rate ⁽³⁾ NETHERLANDS N/A	General long-term inflation rate ⁽³⁾ UNITED KINGDOM 3.00%	General long-term inflation rate ⁽³⁾ ITALY 2.00%
Net liability (in millions of euros)	Net liability (in millions of euros) FRANCE 77	Net liability (in millions of euros) NETHERLANDS 1	Net liability (in millions of euros) UNITED KINGDOM (32)	Net liability (in millions of euros) ITALY 10
Average term of the plans (in years)	Average term of the plans (in years) FRANCE 10	Average term of the plans (in years) NETHERLANDS 13	Average term of the plans (in years) UNITED KINGDOM 14	Average term of the plans (in years) ITALY 6

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Discount rates in each country have been adjusted to reflect the term of the plans. For the Eurozone and the United Kingdom, the Group uses discount rates based on yield curves for high-quality corporate bonds drawn up by an external actuary.
The salary inflation rate disclosed includes general inflation.
United Kingdom: Retail Price Index (RPI): 3.00; Consumer Price Index (CPI): 2.50% for Fiscal 2024.

With respect to the assumptions provided in the above table, for Fiscal 2025, a reduction of 1% in the discount rate would increase the gross obligation to 1,004 million euros (compared with 898 million euros based on the assumptions used as of August 31, 2025), while a rise of 0.5% in the general long-term inflation rate would increase the gross obligation to 919 million euros.

Based on estimates derived from reasonable assumptions, the cost of defined benefit plans in Fiscal 2026 will be 25 million euros.

Multi-employer plans

In the United States, as of August 31, 2025, the Company contributed to 40 multi-employer defined benefit pension plans under the terms of collective-bargaining agreements (“CBA”) that cover its union-represented employees. The risks of participating in these multi-employer plans are different to those of single-employer plans in the following respects:

assets contributed to the multi-employer plan by the Company are used to provide benefits to all beneficiaries of the plan, including beneficiaries of other participating employers;
if a multi-employer plan is considered to be in “critical” status as defined by the U.S. Pension Protection Act of 2006, the plan will be required to adopt a rehabilitation plan which may require Sodexo to increase its required contributions to the plan;
if a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may have to be borne by Sodexo and the other remaining participating employers;
if Sodexo ceases to participate in a multi-employer plan, entirely or partially in excess of a threshold, or if substantially all of the participating employers of a given plan cease to participate, Sodexo may be required to pay that plan an amount based on the value of unfunded vested benefits of the plan and Sodexo’s pro-rata share of total plan contributions, referred to as withdrawal liability.

The Group does not have the ability to account for these multi-employer plans as defined benefit plans because it does not have timely access to information about plan assets, plan obligations, actuarial gains and losses, service costs, and interest costs. As such, the multi-employer plans are accounted for as defined contribution plans.

Sodexo contributed 13 million euros to U.S. multi-employer defined benefit plans in Fiscal 2025 (12 million euros in Fiscal 2024). Of the contributions made by the Company, 62% were made to plans considered to be in “critical” status as defined by the U.S. Pension Protection Act of 2006 and per each plan’s most recent notice of plan funding status. Plans are generally considered to be in “critical” status when they are funded at less than 65%, among other factors, and are considered to be “endangered” when they are funded at 65% or more, but at less than 80%, among other factors.

5.1.1.2 OTHER LONG-TERM EMPLOYEE BENEFITS

Other employee benefits, in the amount of 123 million euros as of August 31, 2025 (138 million euros as of August 31, 2024), mainly comprise a liability related to a deferred compensation program in the United States and obligations relating to long-service awards.

The total expense recognized with respect to these benefits in Fiscal 2025 was 10 million euros (10 million euros in Fiscal 2024).

5.2 Share-based payment

ACCOUNTING POLICIES

Some Group employees receive compensation in the form of share-based payments, for which payment is made in equity instruments. In accordance with IFRS 2 “Share-based Payment”, these plans are classified as equity-settled share-based payment transactions and, accordingly, the services compensated by these plans are recognized as an operating expense over the vesting period (i.e. the period in which the service and, where applicable, the performance conditions are fulfilled), with a corresponding entry recorded in shareholders’ equity.

The services compensated by these plans are recognized as an expense, with the offset recognized in shareholders’ equity, over the vesting period. The amount of expense recognized in each period is determined by reference to the fair value of the equity instruments granted, as of the grant date.

The fair value of restricted shares is estimated at the grant date based on the share price at that date after deductions for dividends on the shares that will not be paid to beneficiaries during the vesting period. The fair value of restricted shares subject to a performance condition based on Total Shareholder Return is estimated using a binomial model that takes into account the vesting conditions.

Each year, Sodexo reassesses the number of shares that are likely to be delivered to beneficiaries of restricted shares based on the applicable vesting conditions. The impact of any change in estimates is recognized in the income statement, with an offsetting entry in shareholders’ equity.

Universal Registration Document Fiscal 2025

4 Consolidated Financial Statements

Multi-employer plans

5.1.1.2 OTHER LONG-TERM EMPLOYEE BENEFITS

5.2 Share-based payment

ACCOUNTING POLICIES