Universal Registration Document Fiscal 2025

ACCOUNTING POLICIES

Treasury shares

Sodexo shares held by Sodexo S.A. itself and/or by other Group companies are shown as a reduction in consolidated shareholders’ equity at their acquisition cost.

Gains and losses on acquisitions and disposals of treasury shares are recognized directly in consolidated shareholders’ equity and do not affect profit or loss for the fiscal year. The gain or loss on a disposal is recognized net of tax.

Transactions in non-controlling interests

Changes in non-controlling interests, in the absence of loss of control, are recognized in shareholders’ equity. In particular, when additional shares in an entity already controlled by the Group are acquired, the difference between the acquisition cost of the shares and the share of net assets acquired is recognized in equity attributable to equity holders of the parent. The value of the assets and liabilities of the subsidiary (including goodwill) remains unchanged.

Put options written on non-controlling interests

As required by IAS 32 “Financial Instruments: Presentation”, Sodexo recognizes commitments to purchase non-controlling interests as a liability within borrowings in the consolidated statement of financial position. Put options written on non-controlling interests given in connection with business combinations are recognized as follows:

• the liability arising from the commitment is recognized in other borrowings at the present value of the purchase commitment;
• the non-controlling interests are cancelled;
• additional goodwill is recognized for the balance.

Subsequently, the financial liability is remeasured at each year-end in accordance with the contractual arrangements and, in the absence of any guidance provided by IFRS, with an offsetting entry in shareholders’ equity.

Earnings per share

Earnings per share is calculated by dividing profit for the year by the weighted average number of ordinary shares outstanding during the fiscal year, net of treasury shares.

In the calculation of diluted earnings per share, the denominator is increased by the number of potentially dilutive shares, and the numerator is adjusted for all dividends and interest recognized in the period and any other change in income or expenses that would result from conversion of the potentially dilutive shares.

Potential ordinary shares are treated as dilutive if, and only if, their conversion to shares would decrease earnings per share of continuing operations or increase loss per share of continuing operations.