Fiscal 2021 Integrated Report Contents Sommaire 01 01 02 02 Introduction Introduction Profil Profile 2 Portfolio 2 Portfolio 8 Message de Sophie Bellon Interview with Sophie Bellon 8 11 Leader mondial des services in Quality of Life services 11 The global leader de Qualité de Vie 12 A unique range of services 12 Une gamme unique de services 14 Mission & valeurs 14 Mission & values 16 Long-term vision 16 Une vision de long terme ensured through founding assurée par un actionnariat family shareholding familial de contrôle 17 Un Conseil d’Administration Board of Directors 17 An independent indépendant 18 L’éthique au cœur 18 Ethics at the heart of the Group’s governance and commitments de la gouvernance et des engagements du Groupe 19 A management team 19 Une équipe de Direction mobilized to face post-Covid issues mobilisée face aux enjeux post-Covid 20 Milestones in the Group’s growth 20 Les grandes étapes de développement du Groupe 03 03 04 04 Strategy Stratégie 23 Essential services for the short- and long-term 23 Des services essentiels sur le court et le long terme 24 Competitiveness and transformation for 24 Compétitivité et transformation profi table and responsible pour une croissance rentable growth over the long term et responsable dans la durée 26 Acting responsibly on a daily basis responsable 28 Identifying and managing risks 26 Agir au quotidien de manière 28 Connaître et maîtriser les risques 29 Highlights of the year 29 Faits marquants Impact impact for all 31 Caring about quality of life 31 Au service de la qualité de vie de tous 32 A sustainable and shared value-creation model 32 Un modèle de création de valeur durable et partagée 34 #Love of food 34 #Love of food 36 #New food experiences 36 #New foodexperiences 38 #Workplace transformation 38 #Workplacetransformation 40 #Social impact 40 #Social impact 42 #Act for climate 42 #Act for climate 44 Financial indicators 44 Indicateurs fi nanciers 46 Non-fi nancial indicators 46 Indicateurs extra-fi nanciers 48 A responsible compensation policy 48 Une politique de rémunération responsable Document d’enregistrement universel 2020-2021 Fiscal 2021 Universal Registration Document Rapport Integrated Report intégré Sodexo est engagé dans une Sodexo is committed to the démarche de rapport intégré, practice of Integrated reporting, inspiré du cadre de référence based on the recommendations de l’International Integrated of the International Integrated Reporting Council (IIRC) et Reporting Council (IIRC) de sa feuille de route en matière and the Group’s roadmap de responsabilité d’entreprise for corporate responsibility Better Tomorrow 2025. Better Tomorrow 2025. Sa conception et sa rédaction Managers from various ont impliqué diff érentes departments within the Group Directions du Groupe, sous forme took part in a series of workshops d’ateliers de co-construction, to co-create the report, ensuring pour donner une vision partagée there is a common perspective on de la performance globale Sodexo’s overall economic, social de Sodexo : économique, and environmental performance. sociale et environnementale. This Fiscal 2021 Integrated Ce rapport intégré de l’exercice Report draws on information 2020-2021 repose notamment from the Universal Registration sur les données du Document Document in which it is d’enregistrement universel, published. dans lequel il s’inscrit. Edité par Sodexo. Conception et réalisation : Angie et Labrador. Rédaction : Sodexo et Sylvie Bréant. Crédits photographiques : Published by Sodexo. Design and production: Angie & Labrador. Writing: Sodexo & Sylvie Bréant. Photo credits: Aurelien Aurelien Bergot / Getty Images, Léa Crespi, Magali Delporte, William Beaucardet, Jhonatan Rodriguez / Kiwibot, Hugo Hebbe / WWF, Bergot/Getty Images, Léa Crespi, Magali Delporte, William Beaucardet, Jhonatan Rodriguez/Kiwibot, Hugo Hebbe/WWF, LightMonkey Ltd, WFP , Sodexo and Getty Images libraries, all rights reserved. Printing: Labrador. This document is printed in LightMonkey Ltd / WFP / photothèques Sodexo et Getty Images, droits réservés. Impression : Labrador. Ce document est imprimé en France by an Imprim’Vert certifi ed printer, on PEFC certifi ed paper produced from sustainably managed forest. France sur un papier certifi é PEFC, issu de forêts gérées durablement chez un imprimeur certifi é Imprim’Vert. As the global leader in Quality of Life services, Sodexo is the daily partner of over 100 million consumers in 56 countries. Since 1966, each day our teams strive to satisfy our customers and consumers, and to create value for all of our stakeholders. These unprecedented times, in which we have all rallied together to beat the Covid-19 pandemic, have highlighted the value of our essential jobs. With a solid business model and the total dedication of its teams, Sodexo has shown great resilience in this unprecedented and especially challenging context. 1 By closely observing new consumer behaviors and trends, and to serve the needs and desires of each individual, Sodexo is accelerating its transformation and strengthening its competitiveness to rapidly adapt to the expectations of its clients and consumers and return to solid, profi table, and responsible growth over the long term. Each of our actions is guided by our mission and values, and our awareness of our impact and responsibilities, which inspire us at every moment to give the best of ourselves to make every day a better day. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T P O R T F O L I O P O R T F O L I O 2 Reconnecting with others Aft er months of lockdown and in some cases isolation, Sodexo helps create the conditions that restore confi dence in a safe return to social bonding. At work, at school and at university, it’s oft en during a coff ee break, lunch or in sharing the same workspace that people can meet, get to know one another and have discussions, whether formal or informal. The conviviality and pleasure of living together play a major role in individuals’ personal development, and boost their capacity to innovate, as well as the performance and effi ciency of organisations. For Sodexo, it also means taking care of others during important moments of life, for example in the hospital or at school, with humanity and savoir-faire. P O R T F O L I O 3 Caring for our teams so they can care for others As a business of people taking care of other people, Sodexo is fully committed to ensuring the well-being and safety of its teams. It's by taking care of our own – striving to off er safe, diverse and inclusive work environments and promoting listening, training and professional development – that each of us can be fulfi lled and contribute to improving Quality of Life for all. Driver of the Group’s development, in the past and in the future, our staff ’s dedication relies on common values that are shared at all levels and on a strong culture of responsible growth and performance. P O R T F O L I O 4 Off ering new eating experiences With increasingly varied options and countless innovations, Sodexo off ers its clients and consumers safe and personalized ways to get a meal, anytime and anywhere. The strength of the Sodexo model is based on the fl exibility and complementarity of its services, serving consumers every day in their professional and personal lives. With its integrated off ering – on-site food services, online ordering, click & collect, meal delivery at work or at home, Meal Pass and more – Sodexo’s solutions are adapted to the new expectations of its clients and consumers. P O R T F O L I O 5 Combining taste, quality and the pleasure of eating well to live better Sodexo’s teams know that eating well contributes to the well-being, health and individuals’ fulfi lment. Consumers are paying more attention than ever to what they eat. They can count on Sodexo for balanced, varied and delicious food that is both a source of pleasure and respectful of individuals and the environment. Demonstrating their talent in all locations, chefs and their teams develop varied recipes suited to the ages, needs and expectations of the consumers they serve, whether client employees, schoolchildren or patients, while helping to increase awareness of nutrition and the environment. P O R T F O L I O 6 Taking sustainable action for a positive impact on the environment Faced with the major challenge of climate change, Sodexo started out on the journey as early as 2009 by defi ning its environmental responsibility roadmap and by becoming in 2017 the fi rst Foodservices company to reduce its carbon footprint throughout its entire value chain. Today, its corporate responsibility ambition extends to its entire ecosystem representing an undeniable advantage for its clients and suppliers, in helping them to achieve their own sustainability goals. P O R T F O L I O 7 Acting every day for the development of all Since Sodexo’s founding, the economic, social and environmental development of the commu- nities, regions and countries in which it operates has been central to its mission and inseparable from the performance requirements it sets itself. Each and every day, the teams strive to provide sustainable and responsible value to all stakeholders by contributing to client performance and societal progress, being attentive to supply chains, supporting consumer purchasing power and partner operations and demonstrating solidarity and commitment that closely match needs. “We are beginning a new stage of Sodexo’s development. We are taking action straight away to increase our competitiveness and accelerate our transformation to secure solid, profitable and responsible growth over the long term.” 8 Interview with Sophie Bellon, Chairwoman of the Board of Directors and Interim Chief Executive Offi cer You have announced very solid annual results. Has Sodexo emerged from the Covid-19 crisis? “Solid” is the right word – we have been resilient, as activity has picked up. We exceeded our revenue and profitability targets for Fiscal 2021, with a progressive recovery quarter on quarter. We have also continued to progress towards our non- fi nancial goals, such as gender equality – today, 43% of Group senior executives are women – and reducing food waste, which was nearly halved at the close to 900 sites where we have rolled out our WasteWatch program. And I would like to take this opportunity to recognize the outstanding work of our teams last year, in a context that remained very challenging. As a result of the renegotiation of many contracts, strict cost control and the contribution from our GET efficiency program, and despite lower revenues again in Fiscal 2021, our Underlying operating margin came to 3.3% for the year, compared to 2.9% in the previous year. Our fi nancial situation is solid, with a robust balance sheet and very strong cash fl ow. And we propose to resume our dividend policy this year. Some of our operations were naturally hit harder than others by the health crisis: for instance, people are returning to offi ces and convention centers only gradually, while in the Healthcare, Seniors, Schools and Benefi ts & Rewards Services, by the fourth quarter of Fiscal 2021, activity was back up to the levels in Fiscal 2019. We are on track to regain our pre-pandemic performance and then, over the medium term, exceed it. Today, our teams are focused more than ever on our fundamentals: client retention, growth opportunities, operational excellence, employee engagement and, above all, consumer satisfaction. On this last point, consumer power has developed even more during the pandemic, and the expectations of our clients and end-users of our services have evolved. And now even more than before the crisis, companies are perceived as legitimate, and even indispensable, players when it comes to social impact and social and environmental responsibility. Clearly, the pandemic has amplifi ed structural trends on our activities and professions. I N T E R V I E W W I T H S O P H I E B E L L O N 9 and grow profi tably over time. This, in turn, is essential to being a fully responsible company, which has been a key part of our mission since the very beginning. It will also help us accelerate the implementation of our CSR roadmap, Better Tomorrow 2025. But of course, our teams are the fi rst of our priorities. The pandemic has only confi rmed my belief that it is above all in the fi eld, in contact with our clients and the 100 million individuals that we touch every day, where we reveal the true value of our services. Excellence in the management of our human resources is an essential condition for our success. In July, you announced you were launching a search for a new Chief Executive Offi cer. What are your priorities for this transition period? Of course, identifying the future CEO of Sodexo is one of the top priorities for our Board of Directors. But in no way is “transition” synonymous with “inertia”. We are beginning a new stage of Sodexo’s development. We are taking action straight away to increase our competitiveness and accelerate our transformation to secure solid, profitable and responsible growth over the long term. Some of the countries where we operate off er major growth potential for Sodexo. In particular, we want to boost our growth in the United States, which represents 39% of our revenues and is our leading market. We are also accelerating the transformation of our food models. There is growing demand for organic, local and plant-based options. Production methods are changing too: we have several projects underway in areas as fundamental as responsible purchasing, centralized production and logistics optimization. And we want to off er our guests an increasingly fl uid and convenient experience in terms of ordering, payment and delivery. We are determined to manage our portfolio of services and activities more actively. Our partnership with the French company Grandir, in which we agreed, this year, to combine our global childcare activities with the expertise of a recognized sector leader, is one example of this approach. We also want to give our Benefi ts & Rewards Services the means to achieve full potential. Finally, we are committed to maintaining the agility and pragmatic approach that we harnessed throughout the pandemic. Achieving the right balance between global and local levels requires any company to make ongoing adjustments, and this is especially true for a company with activities and markets as diverse as ours. We need to give our teams in the fi eld greater freedom of action. It is a must if we are to improve our organization’s eff ectiveness. You have mentioned acceleration and transformation. Will Sodexo’s values and mission remain relevant? Sodexo is controlled by a family shareholding. This is a strength as it guarantees the Group’s independence and stability over the long term. It enables us to perpetuate our founding mission, amazingly forward-looking when it was created back in 1966 and still completely relevant today, to improve the quality of life of our employees and those we serve, and contribute to the economic, social and environmental development of the communities, regions and countries in which we operate. Our family ensures the continuity of this mission and the founding values of service spirit, team spirit and spirit of progress. These are the strong fundamentals upon which we have built the success of Sodexo. They are embodied by our teams who, each and every day, are the face of Sodexo for our clients and for the users of our services. This is because we are fi rst and foremost a company of women and men, at the service of other women and men. This mission and these values expressed by all of our teams are the solid foundation that we draw support from as we work to accelerate our transformation. They allow us to look to the future with confi dence and determination. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T What are Sodexo’s main challenges now? Our top challenge is to resolutely pivot toward a B2B4C model. To this end, we have been taking stakes in or acquiring fi rms such as Nourish in the U.S., Meican in China, FoodChéri in France, Fooditude in the UK, as well as entering global partnerships with major delivery players. By developing our value proposition Vital Spaces, designed to help our clients rethink the conditions and ways of working of their employees at a time when hybrid work models are becoming the norm, we are positioning ourselves as a key player in the work-space environment. The pandemic has impacted our consumption habits. Supporting the users of our services every day involves getting to know them better and interacting more and more directly with them. Continuing to implement our digital transformation throughout our entire value chain is therefore another major goal for Sodexo. It is a prerequisite if we are to keep being innovative. It is what our clients expect, and it is essential for increasing the perceived value of our services. Ensuring that the allocation of our resources is systematically oriented to the most promising markets, in line with our strategic choices, is another priority for Sodexo. Being selective is what will allow us to continue our development 02 PROFILE P R O F I L E T he global leader in Quality of Life services Solid fundamentals Operating in 56 countries, with notably recognized leadership in developing economies, Sodexo adapts its integrated off ering to local needs while providing consistent, high-quality service around the world. Its services create value for clients and improve the daily lives of consumers while meeting its economic, social and environmental commitments. Sodexo’s success and performance is made possible by its independence, its sustainable and responsible business model and its ability to ensure the professional development and commitment of its 412,000 employees around the world. An unchanged mission From the very start, our mission has been to improve the quality of life of our employees and those we serve, and contribute to the economic, social and environmental development of the communities, regions and countries in which we operate. 1 1 A unique service portfolio Founded in 1966 by Pierre Bellon, Sodexo is the only company in the world with a unique client off ering of On-site Services, Benefi ts & Rewards Services and Personal & Home Services, the result of over 50 years of experience and an essential factor in the performance of individuals and organizations. KEY FIGURES As of August(cid:98)31, 2021 412,000 EMPLOYEES IN 56(cid:98)COUNTRIES €17.4 billion IN CONSOLIDATED REVENUES 100 MILLION CONSUMERS SERVED(cid:98)DAILY €10.3 billion IN MARKET CAPITALIZATION #1 FRANCE-BASED PRIVATE EMPLOYER WORLDWIDE(1) 78.3% EMPLOYEE ENGAGEMENT RATE(2) 1.3 MILLION AFFILIATED MERCHANTS LISTED ON THE CAC NEXT 20, CAC 40 ESG, FTSE4GOOD AND DJSI INDEXES Source: Sodexo 1 2021 Forbes Global 2000 ranking. 2 2021 employee engagement survey sent to 336,183 Group employees, of whom 63% responded. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T P R O F I L E A unique range of services With its three business activities, Sodexo off ers a wide range of services meeting the needs of its clients, assisting consumers at every stage in their life. Whether eating a healthy lunch at work, in a restaurant or at home, working effi ciently and safely in a well-designed space, organizing daily life for a better work-life balance, or enjoying a unique experience at a cultural or sporting event, Sodexo has been helping to improve these moments of daily life. From childhood to professional life to retirement, Sodexo is focused on delivering a positive impact not only on individual health and well-being, but also on ecosystems, cities and the planet. Sodexo leverages the synergies that exist among its activities, in particular in business development and global brand awareness, and off ers diverse opportunities to its employees. 1 2 Increasing effi ciency and well-being at the workplace, caring for patients at hospitals, fostering an optimal learning environment at schools, providing safety and comfort on a remote site: our Foodservices, whether on site or in a specifi c environment, and our Facilities Management services improve quality of life for millions of consumers and enable clients to improve their performance. ON-SITE SERVICES EDUCATION (Schools/Universities) Sodexo helps learning institutions foster a fulfi lling educational environment in schools and on campuses while enabling universities to boost their attractiveness. Off ering educational solutions and tools, the Group also supports clients in their infrastructure design and renovation projects. BENEFITS & REWARDS SERVICES With its range of nearly 250 products and services, Sodexo brings personalized employee experiences to life, which improve the quality of life at work and beyond, and contribute to business performance. Clients can count on innovative solutions, such as multi-advantage card solutions, to attract, retain, engage, and support work-life balance or also improve the health and well-being of their teams. The Group operates in three areas: Childcare services, designed to take care of the youngest children while making life easier for parents; Concierge services, to enhance the development and well-being of clients’ employees; and Homecare services, to make life easier for seniors and adults who want to maintain their independence while enjoying the comfort of their home. PERSONAL & HOME SERVICES CHILDCARE* Sodexo is able to off er children a variety of activities that reveal and stimulate their potential while providing parents with the conditions for a fulfi lling parenthood ideally balanced between personal and professional life. * On July 27, 2021, Sodexo announced it had entered into exclusive negotiations to combine its Childcare activities with those of the Grandir Group, a move aimed at creating a global early education leader in which Sodexo will maintain a minority stake . S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com P R O F I L E BUSINESS & ADMINISTRATIONS (Corporate Services, Energy & Resources, Government & Agencies, Sports & Leisure, Others) Sodexo promotes quality of life at work through customized solutions that help businesses, public institutions, managers of prestigious venues and organizers of major events to create welcoming, creative, eff ective and innovative solutions, for all audiences, employees or visitors, even under challenging conditions. HEALTHCARE & SENIORS Alongside healthcare professionals and throughout the entire care experience, Sodexo off ers equipment engineering, clinical infrastructure solutions and a range of value-added integrated services designed to improve the quality of life of patients and seniors in residences or healthcare facilities. 1 3 EMPLOYEE BENEFITS SERVICES DIVERSIFICATION From Meal Pass to Gift Pass, Sodexo off ers its clients innovative and personalized solutions to improve the quality of life of their employees, as well as services aimed at recognizing their eff orts: incentive and recognition programs, professional development tools, etc. Sodexo off ers simple and easy-to-access solutions designed to meet various mobility, health and wellness challenges, such as fuel cards and Mobility Passes. CONCIERGE SERVICES With its Circles physical and digital concierge services, Sodexo makes life easier for consumers while improving client organizations’ productivity, performance and attractiveness. HOMECARE Sodexo off ers care and customized support services along the entire continuum of care, whether for an aging senior, a patient requiring skilled hospital care or a person with a disability or chronic illness. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T P R O F I L E Mission & values Our mission Our values Improve the quality of life of our employees and those we serve, and contribute to the economic, social and environmental development of the communities, regions and countries in which we operate. SERVICE SPIRIT TEAM SPIRIT SPIRIT OF PROGRESS This mission and these values are embodied daily through the commitment of our 412,000 employees, operating in our 3 business activities in 56 countries. “Most patients come to hospitals feeling nervous or worried. It’s our duty to make their stay as comfortable and pleasant as possible. They can count on us for creating tasty and nutritious meals and being by their side as they heal.” David Moorhouse Head Chef Healthcare Nuffi eld Health Hospital, Sodexo UK & Ireland, On-site Services — At Nuffi eld Health Hospital in Leeds, David Moorhouse leads a team of 20 employees that make it their purpose to ensure the comfort and well-being of the scores of patients they serve every day. Each and every meal is made fresh and in-house, and the menu changes regularly to feature seasonal and regional specialities. David takes inspiration from diff erent UK regions and abroad to elaborate the perfect meal. Using his 25 years of experience, he brings fl avors and ingredients that delight patients and provide comfort during their stay. He is also proud of the daily commitment and focus of his team, being the fi rst UK site to implement WasteWatch to limit food waste in the kitchen, reduced by 27% in just 10 months. — David knows that communication and teamwork are key to achieving success and ensuring safety. To deliver exceptional service, David and his team have regular visits with patients and work closely with the Nuffi eld Health team and doctors to truly improve the patient journey through the culinary experience. To encourage vocations and the sharing of expertise, the team welcomes young apprentices to come and explore a culinary career, providing a pathway and real-world experience for the next generation of chefs. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com P R O F I L E “We devote a lot of time and energy to fi nding appropriate solutions and cultivating close relationships. Our clients know they can entrust us with their day-to-day tasks, and more, so they can focus their energy on their assignments, without unnecessary stress.” — Cedar Valley Lodge, a world-class liquefi ed natural gas project center is a nearly 1.2 million square foot facility that accommodates up to 4,500 workers. This best in class accommodation is located at the heart of LNG Canada in Kitimat (British Columbia). Jennifer and her team of more than 30 managers and 200 employees strive to improve the daily lives of users, most of whom are far from the comfort of their homes, by off ering multiple services essential to the proper management of such a project and to the quality of life of everyone: from catering services to accommodation , to the facilities maintenance and management of social areas such as a theatre, a gymnasium and an entertainment center. Every day, her team pays attention to each and every detail, whether it be in taking care of the environment, consumers, or collaborating with the Indigenous communities with which the project has been developed. Jennifer Tsé District Manager Cedar Valley Lodge, Energy & Resources, Sodexo Canada, On-site Services — Despite the impressive size of the site, the Sodexo team deploys its talents to deliver personalized experiences, and it’s this great attention to detail that makes all the diff erence in this extraordinary environment. To further improve the on-site experience and easily meet the needs of everyone, Sodexo has deployed MyWay, a unique, multifunctional app that allows users to view events, activities, daily menus, reserve spaces, etc. Faced with the Covid-19 pandemic, this solution has been a great help in allowing users to feel safe and supported, and provide a sense of normality in everyday life. 1 5 “At a time when traditional ways of working together are having to be reinvented, we’re more dedicated than ever to supporting our clients. With Sodexo’s unique model, we’re able to provide them, and consumers, with solutions tailored to these new uses.” Oumar Sow Strategic Accounts Manager in Île-de-France, Sodexo Pass France, Benefi ts & Rewards Services — In daily contact with business leaders faced with changes in how people work together, Oumar knows what assisting a client involves. His main task is to help businesses introduce comprehensive solutions that improve quality of life for their employees, whether they’re working at the offi ce or from home. — For this accomplished athlete, working in a group that cultivates a culture of teamwork and innovation is of utmost importance. The most satisfying thing is the quality and relevance of the business off ering, made possible by Sodexo’s many types of expertise and the fact that it’s the only player in its market to have an integrated off ering comprising Foodservices, delivery and restaurant voucher solutions. This 360° collaboration within the Group, accelerated by the pandemic, off ers each client a diff erent custom-designed solution in line with employee expectations and the corporate culture. With his wide-ranging responsibilities, which go from rolling out solutions for staff and employee representative committees to monitoring action plans designed on the basis of data analysis, it is with great pride and unwavering enthusiasm for the next challenges that Oumar makes a daily contribution to the employer brand as well as the well-being and performance of their staff . S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T P R O F I L E Long-term vision ensured through founding family shareholding Sodexo’s independence is ensured through the shareholding of Mr. and Mrs. Pierre Bellon and their children, who control 72.6% of the family holding company, Bellon SA. This family-held control guarantees a long-term vision and is key to Sodexo’s success. As of August 31, 2021, Bellon SA held 42.8% of Sodexo’s capital and 57.2% of the exercisable voting rights. To ensure this independence, a service agree- ment was concluded in 1991 between Sodexo and Bellon SA, to consolidate the position of Bellon SA as the Group’s managing holding company. Under the terms of this agree- ment, which will be submitted for renewal at the upcoming Shareholders Meeting, Bellon SA put at Sodexo’s disposal, without any addi- tional cost, three of its managers holding the positions of Chief Financial Offi cer, Chief People Offi cer and Chief Growth Offi cer. This enables Sodexo to benefi t from the strong expertise of these managers, who ensure the dissemination within the Group of the long-term responsible vision and values defi ned by Pierre Bellon at the creation of the Group. Providing Sodexo with a truly strategic advantage, this agreement guarantees the family business model, creating sustainable value for all stakeholders. DISTRIBUTION OF EXERCISABLE VOTING RIGHTS As of August(cid:98)31, 2021 57.2% BELLON SA In June 2015, Mr. and Mrs. Pierre Bellon and their children entered into a 50-year agreement, which prevents the direct descendants of Sodexo’s founder from freely disposing of their shares in Bellon SA. The sole asset of Bellon SA is its holding in Sodexo shares and Bellon SA does not intend to sell this shareholding to third parties. This independence enables the Company to sustain its values, focus on a long-term strategy and ensure long-term sustainability. Since the creation of Bellon SA, the sustained commitment to building a truly international organization, client relationships and developing a successful integrated off ering has refl ected this vision. nurturing lasting PIERRE BELLON Chairman Emeritus Founder of Sodexo and Chairman of the Supervisory Board of Bellon SA 1 6 CAPITAL STRUCTURE As of August(cid:98)31, 2021 BELLON SA Family Holding Company 42.8% 19.6% EMPLOYEES 1.6% TREASURY SHARES 0.8% 100% PUBLIC 54.8% including 50.2% institutional shareholders and 4.6% individual shareholders SOFINSOD 41.0% PUBLIC 1.8% EMPLOYEES For more information, see Chapter 6 of the Universal Registration Document. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com P R O F I L E An independent Board of Directors Under the leadership of Chairwoman Sophie Bellon, the Board of Directors determines the strategic orientation of the Company. The Board pays special attention to the selection of its members. In addition to their ability to represent the interests of all shareholders, Board members must also have the necessary skills, experience and mastery of strategic issues faced by the markets in which the Group operates. The Board strives to have as much diversity as possible among its members and to refl ect the various geographic regions in which the Group is present. It also ensures that a range of technical skills are represented and that its members include individuals who know the Group’s operations well. BOARD OF DIRECTORS As of August(cid:98)31, 2021 Sophie Bellon Chairwoman of the Board I S R O T C E R D Y L I M A F François-Xavier Bellon Chairman of the Management Board of Bellon SA Nathalie Bellon-Szabo Chief Executive Offi cer, Sodexo Sports & Leisure, On-site Services Key fi gures as of August 31, 2021 I S R O T C E R D T N E D N E P E D N I S E V I T A T N E S E R P E R E E Y O L P M E Emmanuel Babeau Chief Financial Offi cer, Philip Morris International Françoise Brougher Independent Director Federico J. González Tejera Chief Executive Offi cer, Radisson Hotel Group Véronique Laury Independent Director 1 7 Luc Messier President of Reus Technologies LLC Sophie Stabile Chief Financial Offi cer, Lagardère; Chairwoman of the Audit Committee Cécile Tandeau De Marsac Chairwoman of the Compensation and Nominating Committees Audit Committee member Compensation Committee member Nominating Committee member Philippe Besson Head of Projects and Sponsorship, Sodexo France Cathy Martin Regional Manager, Sodexo Canada During the Fiscal 2021 Shareholders Meeting of December 14, 2021, the renewal of François-Xavier Bellon is proposed to the shareholders vote, as well as the appointment of Jean-Baptiste Chasseloup de Chatillon as independent director. Emmanuel Babeau has decided not to seek reelection. 12 members 70% independent directors* 2 directors representing employees 4 years on average in offi ce for independent directors 60% women* 4 nationalities 95% average attendance 57 average age * Excluding directors representing employees. Jean-Baptiste Chasseloup de Chatillon Executive Vice President, Chief Financial Offi cer, Sanofi For more information on the governance and the activities of the Board and its Committees, see Chapter 6 of the Universal Registration Document. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T P R O F I L E Ethics at the heart of the Group’s governance and commitments Ethics are essential to Sodexo’s success and a fundamental pillar of its commitments to responsible business conduct. Sodexo’s management has zero tolerance for abusive practices, such as corruption or human rights violations. Sodexo is, and will continue to be, a company that employees, clients, consumers, partners and other stakeholders can trust. TO MAINTAIN THIS TRUST, SODEXO’S EMPLOYEES AND PARTNERS AGREE TO COMPLY WITH THE ETHICAL PRINCIPLES THAT GUIDE ITS ACTIVITIES: LOYALTY RESPECT FOR PEOPLE TRANSPARENCY INTEGRITY 1 8 Working to improve quality of life means making trust central to our relationships. Sodexo is built on a solid foundation of loyalty to its clients, employees and shareholders, and on honest and open relationships with them. Loyalty is one of the cornerstones of how our business operates. Humanity is central to our business. Sodexo is committed to acting in favor of equal opportunity, regardless of ethnicity, age, gender, beliefs, religion or sexual orientation. Improving quality of life means treating each individual with respect, dignity and consideration. This is a key principle for Sodexo that applies consistently with all stakeholders: clients, consumers, employees, shareholders and the general public. We ensure that all are informed in a clear and precise manner about our products, services, commitments and performance. We condemn and refuse to tolerate any practices that are not based on honesty, integrity and fairness, regardless of where our business operates in the world. We make our position clear to our clients, suppliers and employees, and expect them to reject corrupt and unfair practices. CENTRAL TO ITS VALUES AND ETHICAL PRINCIPLES, RESPECT FOR HUMAN RIGHTS IS A PILLAR OF SODEXO’S COMMITMENT TO BUSINESS INTEGRITY AND ESSENTIAL TO ITS MISSION. Sodexo conducts its business in a manner that does not infringe upon the human rights of others and works to identify, prevent and mitigate any adverse impacts that may result from its business activities. All employees and partners are expected to observe this commitment, which is based on the international human rights prin- ciples set forth in the International Labor Organization’s Declaration on Fundamen- tal Principles and Rights at Work, and on the United Nation’s Guiding Principles on Business and Human Rights. No one can truly be exemplary unless they are exem- plary in their own organization. This is why Sodexo guarantees all its employees common working standards as outlined in its Fundamental Human Rights at Work charter. SODEXO SPEAK UP ETHICS LINE Since it is our duty to always be attentive and improve the way we uphold our principles, Sodexo provides its employees and partners with a confi dential system, available 24/7, that they can use to alert us to any activities or behavior that goes against our Code of conduct: speakup.sodexo.com S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com P R O F I L E A management team mobilized to face post-Covid issues The Executive Committee implements the strategic orientations established by the Board of Directors and oversees Sodexo’s operations worldwide. This diverse team combines cross-functional expertise and skills representative of all the Group’s activities, segments and geographic regions. During the transition period until the arrival of a new CEO, a T ransition C ommittee with a team composed of 12 people and chaired by Sophie Bellon has been put in place. Its objective is to accelerate the return to profi table growth, in particular by steering the implementation of the Group's short-term priorities and the performance of the C ompany. THE EXECUTIVE COMMITTEE As of November(cid:98)1, 2021 Sophie Bellon Interim Chief Executive Offi cer E E T T I M M O C N O I T I S N A R T Anne Bardot Group Chief Communications and Public Aff airs Offi cer Nathalie Bellon-Szabo Chief Executive Offi cer, Sports & Leisure, On-site Services Johnpaul Dimech Sean Haley Sylvia Metayer Sarosh Mistry Chief Executive Offi cer Geographic Regions, Region Chair, Asia Pacifi c, On-site Services Region Chair UK & Ireland, On-site Services ; Group Chief Executive Offi cer of Service Operations Group Chief Growth Offi cer Region Chair, North America, On-site Services Sunil Nayak Anna Notarianni Marc Plumart Marc Rolland Aurélien Sonet Annick de Vanssay Chief Executive Offi cer, Corporate Services, On-site Services Region Chair, France, On-site Services Chief Executive Offi cer, Healthcare & Seniors, On-site Services Group Chief Financial Offi cer Chief Executive Offi cer, Benefi ts & Rewards Services Group Chief People Offi cer* Tony Leech Chief Executive Offi cer, Government & Agencies, On-site Services Belen Moscoso Del Prado Group Chief Digital & Innovation Offi cer Didier Sandoz Simon Seaton Bruno Vanhaelst Chief Executive Offi cer, Corporate Responsibility and Personal & Home Services Chief Executive Offi cer, Energy & Resources, On-site Services Group Chief Sales and Marketing Offi cer Key fi gures as of October 1, 2021 39% WOMEN 44% NON-FRENCH 8 NATIONALITIES 3 years AVERAGE SENIORITY IN THE EXECUTIVE COMMITTEE 54 AVERAGE AGE * During the transition period. For more information on Sodexo’s governance, see Chapter 6 of the Universal Registration Document. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T P R O F I L E Milestones in the Group’s growth Since 1966, Sodexo has been dedicated to the goal of improving quality of life, convinced of its contribution to both higher organizational performance and societal progress. This consistent focus is the bedrock for sustainable and profi table growth which provides continuous development opportunities to its employees. 1966 Sodexo founded by Pierre Bellon 1967 First multi-service contract for the management of CNES (French Space Agency) in Guyana 1995 Acquisitions of Gardner Merchant (UK) and Partena (Sweden) 1976 1st meal voucher 40 countries Development in North America, South America, Russia and South Africa 1992 Creation of the Sodexo Management Institute 35 countries Development in Belgium, Italy, Spain, Africa and the Middle East 1983 Initial public offering on the Paris Stock Exchange 1987 The Group is structured in line with its internationalization with the emergence of client segments 1975 Opening of foodservices in schools and hospitals 15,000 €213 m 1,000 €9.3 m 36,000 €1.2 bn 1970 1975 1980 1985 1990 1995 S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com 1996 Creation of Stop Hunger, a global non-profit network that works towards a hunger-free world 1998 Creation of the European Works Council 1998-2001 Acquisition of Marriott Management Services (U.S.) 2000-2005 Launch of new Quality of Life services: facilities management services, vouchers and cards services 286,000 380,000 72 countries Including Brazil, China, India €15.3 bn €10.5 bn Rapid growth in new markets: technical maintenance, energy and water consumption efficiency, spatial planning P R O F I L E As of August 31, 2021 470,000 €22 bn 80 countries EMPLOYEES 412,088 56 countries CONSOLIDATED REVENUES €17.4 bn Since March 2020, Sodexo faced an unprecedented decline in business due to the Covid-19 pandemic, significantly affecting its financial performance, share value and workforce. Nevertheless, during the worst crisis the sector has ever seen, the Group demonstrated its resilience and the relevance of its business model. Since March 2021, Sodexo’s business has been gradually recovering. The Group remains confident in the strength of its financial structure, market positioning and medium-term prospects. SHARE PRICE €70.02 2016 • Appointment of Sophie Bellon as Chairwoman of the Board of Directors • Launch of the Sodexo Ventures fund 2017 Renewal of corporate responsibility commitments (Better Tomorrow 2025) 2018 • Denis Machuel becomes CEO • Sodexo becomes a leader in the Sports & Leisure segment globally with the acquisition of Centerplate 2000-2010 Acquisitions of Sogeres and Score Group (France), Wood Dining Services, Circles, Comfort Keepers® (USA), Zehnacker (Germany), Radhakrishna Hospitality Services Group (India), VR (Brazil) 2009 Implementation of the first corporate responsibility roadmap 2019 • Sodexo expands its offering by strengthening its position in Foodservices – Novae (Switzerland), Alliance in Partnership (United Kingdom) – and in Personal & Home services – Pronep (Brazil), Crèches de France (France) and The Good Care Group (United Kingdom) • Sodexo strengthens its technological capabilities with the acquisition of a strategic minority stake in Zeta (India) and a strategic investment in Meican (China) Development of integrated Quality of Life services, for key global accounts 2000 2005 2010 2015 2020 - 2021 S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T 03 STRATEGY S T R A T E G Y Essential services for the short- and long-term Beyond the current crisis, preparing for the long-term future means integrating the world’s great transformations. Sodexo constantly fi ne-tunes its strategy by defi ning and analyzing major megatrends with demographic, social, environmental, economic and technological implications. THE MAJOR CHANGES IN OUR MARKETS ARE AS FOLLOWS: DEMOGRAPHIC CHANGES PUBLIC DEFICITS Developed countries are faced with rapidly aging populations due in part to slow population growth and an increase in life expectancy. Meanwhile, developing countries are expected to achieve 18.5% average population growth between 2015 and 2030(1). Between now and 2030, heavy Covid-related public defi cits will continue to strongly impact public policies and taxation. The weight of public debt should lead governments to consider more effi cient ways to provide public services and to outsource certain services. URBANIZATION Rapid urbanization is contributing to the increase in GDP per capita, but the emergence of mega-cities (>10 million inhabitants) is creating enormous economic and social challenges. Urbanization projects are expected to be impacted in the short term but will continue to expand in the long term. EMERGING MIDDLE CLASSES Education and technology are transforming consumer modes and habits. The middle classes, whose purchasing power is on the rise and which will represent most consumers by 2022, are dedicating an increasing share of their budget to health and wellness, leisure and culture. GLOBALIZED ECONOMY Capital, information and talent are now interconnected, providing companies with new sources of growth. However consumers are also increasingly favoring local products and convenience services. DEVELOPING ECONOMIES Developing markets are creating wealth for millions of people. Their weight in the world economy is increasing due to rapid population growth – seven times faster than that of developed countries – and the rise of the middle class. ENVIRONMENTAL ISSUES AND RESOURCE SCARCITY 8.6 billion inhabitants by 2030: the demographic boom is putting pressure on natural resources, heightening global warming and disrupting traditional consumer models. The Covid-19 pandemic has raised awareness of this issue. 2 3 EMPOWERED CONSUMERS Consumers and clients now have unlimited access to information and expect personalized services and experiences. The current crisis has defi nitely accelerated this trend, empowering consumer communities. DIGITAL TRANSFORMATION The development of technology is disrupting the relationship between companies and users and generating new expectations. As the value of data grows, off ering new insights and usages, companies are able to increasingly personalize their off ering. OWNERHIP VS. USE Why buy if you can subscribe or rent? Collaborative platforms are revolutionizing business models and buying behaviors. The lower capital intensity of these business models can accelerate growth. THE FUTURE OF WORK Disruptive technologies such as artifi cial intelligence, robotics and the Internet of Things are all profoundly transforming the working world. To succeed, businesses must support employability and attract talent. 1 Roland Berger Trend Compendium, UN DESA. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T S T R A T E G Y Competitiveness and transformation for profi table and responsible growth over the long term In a context marked by the unprecedented Covid-19 crisis and customers’ and consumers’ changing expectations, Sodexo is strengthening its competitiveness and accelerating its transformation to return to solid, profi table and responsible growth over the long term. Sodexo is also embarking on a program to optimize and simplify its central structures, including tran- sitioning from 12 to 7 regions and pooling support functions. Coming out of the crisis linked to the Covid- 19 pandemic, in its portfolio review the Group takes care to ensure that each of its activities benefi ts from an optimal positioning in its market. Thus, in July 2021, Sodexo announced that it had entered into exclusive negotiations to combine its childcare activities, including Liveli in France, with those of the Grandir group, to become a global early education leader with broad geographic coverage. The Group also ceded control of Rydoo, its mobility and professional expense manage- ment solution, to an international investment company to enable the development of its business model. The GET effi ciency program, announced in November 2020, aims to enable Sodexo to be more agile and effi cient, closer to the needs of the fi eld. Designed to protect the gross margin by adapting the on-site cost structure to new post-pandemic activity volumes, at the same time this program also aims to structurally reduce SG&A over the long term by simplifying the Group's structures to free up capacity for investment in growth and to improve margins. At the end of Fiscal 2021, the exceptional costs of this program amount to 312 million euro with a cumulative target of 330 million euro for Fiscal 2022. The savings totaled 218 million euro and should reach 394 million euro cumulatively by the end of Fiscal 2022, beyond the initial target of 350 million euro. FY20 FY21 FY22 (estimated) (in million €) Initial target Cumulated TOTAL EXCEPTIONAL COSTS Cash impact SG&A savings GP cost avoidance TOTAL SAVINGS €350m 90% €175m €175m €350m 158 -75 - - 312 -217 91 127 218 330 -310 166 228 394 2 4 Sodexo's strategy incorporates some external factors: major long- term global trends such as aging populations, increasing urbaniza- tion, the development of the middle classes or even trends more specifi c to its sector of activity, such as the increasing outsourcing of services, new patterns of consumption, and the rise of hybrid working habits. It also relies on the analysis of the dynamics in place in its competi- tive environment. The strategic exercise that integrates these various elements allows Sodexo to optimize its value proposition and the positioning of each of its acti- vities in their market as well as its value chain. It also helps align the allocation of resources and required skills with strategic priorities. Thus, three main axes have been defi ned. STREAMLINING THE ORGANIZATION AND THE SERVICE PORTFOLIO TO INCREASE EFFICIENCY To strengthen its competitiveness and increase its agility, Sodexo is continuing and accelerating the momentum started in 2018. The Group, which has already reduced its international presence from 80 coun- tries in 2018 to 56 countries at the end of Fiscal 2021, is continuing to optimize its geographical locations by focusing on regions for which the growth potential is the greatest. Because they represent essential drivers of innovation for the future, the Group intends to strengthen its eff orts in the United States to gain leading, sustainable and profi table market shares. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com Fiscal 2021 key fi gures CONSOLIDATED REVENUES €17,428m (-5.6% organic growth) ON-SITE SERVICES REVENUES €16,687m (87% of Fiscal 2019 revenues at constant rate by the fourth quarter) Client retention rate 93.1% New sales development 6% Same site sales -6.3% BENEFITS & REWARDS SERVICES REVENUES €745m (97% of Fiscal 2019 revenues at constant rate by the fourth quarter) UNDERLYING OPERATING PROFIT €578m UNDERLYING OPERATING MARGIN 3.3% INVESTMENTS AIMED AT RE-ENERGIZING GROWTH Building on the initial gains in ope- rational effi ciency and commercial relevance, the Group is continuing its eff orts to anticipate and respond ever better to the needs of its customers and to strengthen their loyalty, around a unique portfolio of services. The Group’s approach is to place the consumer at the heart of its model and to respond to the diversity of needs with relevant services. To do this, the Group is continuing its targeted investments around catalysts such as the deployment of a global customer relationship ma- nagement tool for On-Site Services and a new Regional Marketing & Sales Distribution Center in Europe. S T R A T E G Y Sodexo is also changing its operating model by developing new off -site production sites and strengthe- ning the digitization of its services. Building on its investments, Sodexo is strengthening its go-to-market strategies and building unique rela- tionships with its clients. A real strategic asset for Sodexo, its purchasing and supply manage- ment is also undergoing a transfor- mation with three major objectives: improving the cost structure, increa- sing effi ciency and contributing to improving the Group's competitive- ness; ensuring safety and quality to mitigate risk; and focusing on new consumer expectations to drive revenue growth. Since 2018, the Group has invested 40 million euro to carry out this transforma- tion with the goal of positioning the purchasing function as an essential business partner in the service of the C ompany's growth, driven in particular by investment in talents, consolidation of the approach for res- ponsible sourcing and the digitization of systems and processes as well as data collection and analysis. ACCELERATING THE GROUP'S TRANSFORMATION During Fiscal 2021, the Group continued to develop new food models with the acquisition of Fooditude in the United Kingdom and of Nourish Inc. and Foodee in North America, a region where the Group also has developed The Good Eating Company to complete its service off ering. With approximately 1 billion digital transactions per year, the trans- formation of Benefi ts & Rewards Services continues in all geographi- cal areas to deliver a personalized and simplifi ed employee experience in a hybrid work environment. The deployment of the platform imple- mented in partnership with Zeta in India for a new consumer-centric approach and innovative digital payment technology continues in other countries, including Brazil, to off er a unique and holistic multi-be- nefi t experience. The Group has also entered into global partnerships with several main delivery platforms - Deliveroo, UberEats, Just Eat, etc. - thus enabling consumers to benefi t from an extensive network of merchant partners. In order to strengthen its position in the Employee Benefi ts market and pursue its digital transformation, Sodexo has also acquired a majority stake in Wedoogift , a native digital player, and thus become the leader in gift vouchers in France, with the most extensive and innovative line on the market for nearly 50,000 clients and 5 million employees. In view of the acceleration of new consumer behaviors and disruptions, particularly digital ones, Sodexo is entering a new period of its development. This new stage in the history of the Group marked by the acceleration of its transformation must particularly be embodied in new leadership. The Board of Directors thus ended the mandate of Denis Machuel on September 30, 2021 and announced the search for a new Chief Executive Offi cer. During this transition period, Sophie Bellon, Chairwoman of the Board of Directors, is acting as Interim Chief Executive Offi cer. Organizational changes were also announced, such as the local management of the Schools and Government Services segments and the creation of a Transition Committee at Group level whose main strategic priorities are as follows: • boost US growth; • accelerate the food model transformation; • manage more actively the portfolio; • enhance the eff ectiveness of the organization. As part of the Group’s portfolio ma- nagement program, the Board of Directors has confi rmed that it is necessary to accelerate the growth and diversifi cation plans of Benefi ts & Rewards Services and has therefore decided to explore a number of strategic options to enhance support, focus and resources of Benefi ts & Rewards Services, while retaining control. With market potential valued at 900 billion euro (1) and backed by a solid fi nancial situation, family shareholding which is a guarantee of stability and long-term vision, and committed teams, Sodexo is entering this new phase with confi dence. 1 On-site Services market potential, including Personal & Home Services. Sodexo estimate (market estimates are likely to evolve over time, given the growing reliability of information sources in various countries). S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T 2 5 S T R A T E G Y Acting responsibly on a daily basis Anchored in the Group’s DNA since its creation in 1966, corporate responsibility is a cornerstone of Sodexo’s mission and operations. Particularly innovative at the time, this vision and the associated commitments progressed as the Company developed and the issues and collective challenges grew. Challenges and impacts Today, more than ever, our responsibility is to act in close collaboration with all of our stakeholders – clients, employees, suppliers, consumers and shareholders – for a global positive impact. During Fiscal 2021, in collaboration with EY, a third materiality assessment identified and prioritized key corporate responsibility issues and their impacts. Consultations and analyses with numerous internal and external stakeholders(1), integrating the impact of major ongoing developments - social, societal and environmental - as well as the evolution of market expectations, resulted in the quantitative and qualitative assessment of 28 challenges, defi ned and classifi ed according to their importance. Identifying the most relevant issues helps Sodexo to manage its risks and seize the associated opportunities. 2 6 HIGH VERY HIGH CRITICAL IMPORTANCE FOR SODEXO Safety and quality of food and FM services Occupational health & safety Food waste Business integrity Respect of human and workers’ rights in the supply chain Diversity, equity and inclusion Data privacy and protection Employee well-being Packaging and plastics Talent attraction Consumer experience and outcomes Stakeholder engagement C R I T I C A L V E R Y H I G H H I G H S T A K E H O L D E R E X P E C T A T I O N S Environmental impacts of purchases Carbon emissions Employee social dialogue Access to affordable and healthy food Sustainable offerings Fair relationship with suppliers and subcontractors Employee training and development ESG Governance Business adaptation and resilience to climate change Choice of clients and suppliers aligned with Company values Under-represented communities empowerment and inclusion Local socio-economic impacts Transparent communication and information on products Waste management (non-organic) Governance Employees Consumers Communities Environment 1 Employees, managers, suppliers, clients, consumers, partner NGOs, investors and ratings agencies. For more information on the materiality study, see Chapter 2 of the Universal Registration Document. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com Animal welfare Water consumption and quality Source: EY june 2021. S T R A T E G Y Our Corporate Responsibility roadmap The key issues identifi ed in the materiality assessment confi rm the consistency with Sodexo’s commitments as an employer, service provider and responsible company. The Better Tomorrow 2025 corporate responsibility roadmap, which formalizes these commitments and their objectives, was also developed in accordance with the United Nations Sustainable Development Goals (SDGs). Sodexo evaluates its progress using relevant, tangible and measurable objectives that the Group identifi es in a transparent way, in accordance with the principles that form the basis of its governance. BETTER TOMORROW 2025 Our 9 commitments and objectives for 2025 OUR IMPACT ON INDIVIDUALS OUR IMPACT ON COMMUNITIES OUR IMPACT ON THE ENVIRONMENT OUR ROLE AS AN EMPLOYER Commitment: Improve the quality of life of our employees, safely Objective: 80% employee engagement rate Commitment: Ensure a diverse workforce and inclusive culture that refl ects and enriches the communities we serve Commitment: Foster a culture of environmental responsibility within our workforce and workspaces Objective: 100% of our employees work in countries that have gender balance in their management populations Objective: 100% of our employees are trained on sustainable practices 2 7 OUR ROLE AS A SERVICE PROVIDER Commitment: Provide and encourage our consumers to access healthy lifestyle choices Commitment: Promote local development and fair, inclusive and sustainable business practices Commitment: Source responsibly and provide management services that reduce carbon emissions Objective: 100% of our consumers are off ered healthy lifestyle options every day Objective: 10 billion euro of our business value will benefi t SMEs(1) Objective: 34% reduction of carbon emissions(2) OUR ROLE AS A CORPORATE CITIZEN Commitment: Act sustainably for a hunger-free world Objective: 100 million Stop Hunger benefi ciaries(3) Commitment: Drive diversity and inclusion as a catalyst for societal change Objective: 500,000 empowered women in communities(3) Commitment: Champion sustainable resource usage Objective: 50% reduction in our food waste 1 Small and Medium Enterprises. 2 Absolute reduction in Scope 1, Scope 2 and Scope 3 carbon emissions, compared to a 2017 baseline. 3 Cumulated data since 2015. For more information on the Fiscal 2021 non-fi nancial indicators, see pages 46-47 and Chapter 2 of the Universal Registration Document. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T S T R A T E G Y Identifying and managing risks In its operations and while implementing its strategy, Sodexo faces a certain number of internal and external risks and uncertainties. To address them and safeguard its values, the Group has created an organization and policies aimed at identifying, evaluating, preventing and managing these risks to limit their negative impact. Operational managers are the first line of defense in identifying and managing risks in their area of activity. Support and transversal functions defi ne the procedures and standards and provide tools and processes for operational staff to manage these risks. Internal audit carries out an independent assessment of risk management and makes recommendations for improvements. B O A R D O F D I R E C T O R S/AUDIT COMMITTEE ’ E X E C U T I V E C O M M I T T E E Reports Reports Reports Informs 2 8 FIRST LINE OF DEFENSE OPERATIONAL MANAGEMENT SECOND LINE OF DEFENSE SUPPORT/ TRANSVERSAL FUNCTIONS THIRD LINE OF DEFENSE INTERNAL AUDIT R E G U L A T O R S / E X T E R N A L A U D I T O R S Main risks Each year, a risk profi le is established based on the risk assessments senior management performs with regard to the main entities and also in interviews with senior executives. The risks considered to be the most signifi cant for Sodexo as of August 31, 2021 are presented in the table below. The risk profi le has changed this year, the risk associated with talent management and development being identifi ed as “high” and the pandemic risk established as “medium”. MEDIUM HIGH CLIENTS/ CONSUMERS OPERATIONAL EFFICIENCY TALENT Client retention Consumer expectations Bidding risks Competition Client contract execution Technology and information security Talent management and development Resource planning CORPORATE Food, services and workplace safety RESPONSIBILITY Environmental impact EXTERNAL ENVIRONMENT Pandemic risks Compliance with laws and regulations For more information, see section 6.4.3 of the Universal Registration Document. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com S T R A T E G Y Highlights of the year During Fiscal 2021, Sodexo continued to follow its roadmap to achieve sustainable and responsible growth. HERE IS A SELECTION OF HIGHLIGHTS: GROWTH-ORIENTED INVESTMENTS CORPORATE RESPONSIBILITY INDICES/ RECOGNITION Developing new solutions in Food- services in North America, with the launch of Good Eating Company as well as the acquisition of Nourish Inc. and Foodee, a leader in corporate meal-planning services. Creation of the gift card leader in France with the acquisition of a ma- jority stake in Wedoogift . Increased digitization and accep- tance of Benefi ts & Rewards Services, in particular with global partnership agreements with Uber Eats and Just Eat Takeaway.com to allow holders of the Sodexo Meal Pass to easily pay for their orders and have them delivered. Expansion of services designed for students at U.S. universities by forming partnerships for the delivery of Hello Fresh boxed ingredients, robot deliveries of meals on campuses and the development of plant-based burgers with SavorEat. BUSINESS SUCCESS Commitment with the IUF(1) on health and safety priorities. Membership in the RE100 initiative and commitment to using 100% renewable electricity in its operations. Progress in the fi ght against single- use plastic with the replacement of fi ve items(2) in Europe with new, more sustainable options. Commitment to the European Code of conduct for responsible business and marketing practices. GOVERNANCE Changes in Group governance with the announcement by the Board of Directors of the launch of a search for a new Chief Executive Offi cer to lead the Group to strengthen its competitiveness and accelerate its transformation. Denis Machuel's mandate as CEO ended on September 30, 2021. Continued efforts on corporate responsibility issues with Sodexo’s inclusion in the new ESG index of Euronext CAC 40 ESG. Recognition of sector leadership in terms of corporate responsibility by the Dow Jones Sustainability World Index (DJSI). Signifi cant progress in the area of carbon strategy and fi ghting climate change joining A list from the CDP (formerly Carbon Disclosure Project). 2 9 An active, widely recognized diver- sity strategy with inclusion in the Bloomberg 2021 gender-equality index. Recognition of leadership in inclusi- vity for LGBTI individuals according to the 2020 Workplace Pride Global Benchmark. Increased development, retention and extension of client contracts, including: • in France: APHP (Healthcare), Oddo BHF (integrated contract) and the Jules Carteret campus (Corporate); • in the United Kingdom & Ireland: Solent University, Oundle School and Eton End (Education); • in APAC: Pfi zer (Corporate), Shanghai Public Health Clinical Center (Healthcare), Dulwich College International (Education), Amazon (Benefi ts & Rewards); • in Continental Europe: Sanofi (Corporate), Siemens (Benefi ts & Rewards); • in Latin America and Brazil: Kimberly Clark (Corporate), Mina Escondida and Collahuasi Mine (Energy & Resources); • in North America: PennState Health System and Methodist Hospital (Healthcare), Miami Jewish Health (Seniors), George Mason University and Guam Department of Education (Education), BNP Paribas (Corporate), U.S. Army Medical Command (Government & Agencies), Ole Miss Athletics (Sports & Leisure). 1 International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tourism, Tobacco and Allied Workers’ Associations. 2 Plastic take-out bags, straws, plates, cutlery and coff ee stirrers. Get the latest news of the Group on www.sodexo.com S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T 04 IMPACT IMPACT I M P A C T Caring about quality of life for all Sodexo develops and maintains strong relationships with its clients, consumers, employees, shareholders and local communities in the countries where the Group operates benefi tting its entire ecosystem. EMPLOYEES Sodexo off ers a wide range of job opportunities in the communities in which the Group operates. The Group works to safeguard the health and safety of its teams and supports them every day, in particular via training programs that promote career development and internal promotions. INSTITUTIONS/NGOs Sodexo continues to expand its ecosystem to meet global challenges such as respect for human rights, working conditions, diversity, equity and inclusion, carbon emission reduction, nutrition, food waste and eff orts to end hunger. CONSUMERS/ COMMUNITIES Sodexo improves the quality of life of millions of people by making their daily lives easier and helping them adopt a healthier and more sustainable lifestyle. CLIENTS Sodexo off ers its clients a wide range of services with a positive direct impact on the performance of their operations, the motivation of their staff and the competitiveness and attractiveness of their organizations. For more information, see Chapter 2.1.3 of the Universal Registration Document. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T SUPPLIERS/ AFFILIATED MERCHANTS Sodexo strives to build relationships with its merchant partners that are benefi cial to all and encourages them to adhere to its demanding standards in terms of quality, working conditions, business integrity and environmental protection. 3 1 GOVERNMENTS/ REGULATORS Sodexo’s operations are governed by a large number of regulations in terms of food safety, workplace health and safety, public procurement, payment services and other topics. Public or governmental bodies represent a signifi cant share of Group revenues. INVESTORS The presence of the Bellon family is a guarantee of fi nancial independence and stability for Sodexo. All shareholders provide the support necessary for the Group’s growth. I M P A C T A sustainable and shared value-creation model OUR MISSION Improve the quality of life of our employees and those we serve, and contribute to the economic, social and environmental development of the communities, regions and countries in which we operate. OUR AMBITION Improve the quality of life of a billion individuals around the world. RESOURCES OPERATIONS Megatrends see page 23 3 2 412,088 ENGAGED EMPLOYEES HUMAN €17.4 BILLION IN CONSOLIDATED REVENUES ECONOMIC INNOVATION INSIGHT GAINED FROM 100 M CONSUMERS E D B Y D I G ITAL AND INNO V A TI O R O W E P 54% Foodservices 79% Employee benefi ts VICES R E E S T I S - N O 46% Facilities Management services Improving quality of life N B E N E F I T S & R E W A R D S S E R V I C E S * 21% Services diversifi cation RELATIONSHIPS Concierge Services Homecare Childcare SUSTAINABLE PROCESSES RESPONSIBLY- SOURCED RAW MATERIALS NATURAL RESOURCES * Excluding Rydoo revenues. A N C H O S P ERSONAL & HOM E S E R V I C E RING CORPORAT E R E S P O N S I B I L I T Y S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com I M P A C T Sodexo’s success as a service provider, employer and corporate citizen depends on its ability to build enduring relationships with all of its stakeholders. OUR VALUES • Service spirit • Team spirit • Spirit of progress OUR ETHICAL PRINCIPLES • Loyalty • Respect for people • Transparency • Integrity STAKEHOLDERS EMPLOYEES SUPPLIERS/ AFFILIATED MERCHANTS INSTITUTIONS/NGOs GOVERNMENTS/ REGULATORS INVESTORS CONSUMERS/ COMMUNITIES CLIENTS 3 3 IMPACTS 82% RETENTION RATE OF TOTAL WORKFORCE HUMAN 2€ DIVIDEND PER SHARE PROPOSAL FOR THE FISCAL YEAR(1) ECONOMIC €6.9b n SPENT WITH SMEs(2 ) RELATIONSHIPS 23.2% OF SCOPE 3 CO2 EMISSIONS REDUCTION (3 ) NATURAL RESOURCES For more information, see Chapter 2 of the Universal Registration Document and www.sodexo.com S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T 1 Submitted for approval at the Shareholders Meeting of December 14, 2021. 2 Small and Medium Enterprises. 3 Scope 3 (supply chain) compared to the 2017 base-line . #LOVE OF FOOD Listening to consumers to best meet their changing expectations, Sodexo continues to transform its food off ering. In keeping with its historical approach focused on quality, nutrition and health, Sodexo strengthens the use of local, seasonal, healthy and sustainable food to make every meal a tasty experience that also supports consumer health and well-being, wherever they are and whatever their environment and habits. 3 4 C onvinced that quality of life requires a varied and balanced diet, Sodexo’s teams off er every day a wide range of products and recipes specifi cally designed for consumer needs to ensure that its meals are tasty, enjoyable and healthy. Quality, health and nutrition at the heart of Sodexo’s off ering As a quality label illustrating the approach, the Mindful program is now available at over 2,500 sites in 13 countries to guide consumers' daily meal choices with the support of dietitians and nutritionists. Thanks to its expertise in clinical nutrition, Sodexo has for example been selected by the Penn State Health hospital complex in Pennsylvania to provide a varied, nutritional and healthy food off ering to be implemented in conjunction with an innovative technology for ordering meals and monitoring the diet of each patient as well as Experiencia, its exclusive real-time data-analysis platform. In Madrid, the Awaken the Senses program, which focuses on sensory stimulation for seniors needing long-term care at the Los Robles retirement home, has helped reduce malnutrition risks by 70%(1). All around the world, Sodexo’s food off erings are designed to satisfy consumer needs and preferences. FoodiE Café, a new culinary experience designed around enjoyment, engagement and exploration, offers a wide range of sustainable and healthful alternatives at North American middle schools. The Circuit, an off ering for U.S. university campuses, supports the physical and mental performances of student athletes and their supporters. Since information and education are essential, Sodexo is rolling out more and more initiatives aimed at encouraging consumers to follow 10 golden rules for better nutrition, health and well-being at its restaurants and on its apps and websites. The passion and culinary expertise of Sodexo’s teams Whether they’ve graduated from culinary school, trained in-house, at the new Lenôtre Culinary Arts School or come from prestigious kitchens, recognised as Meilleur Ouvrier de France or by Michelin stars, Sodexo’s chefs all have one thing in common: they put their talent and passion for food at the service of consumers to ensure a tasty and enjoyable food experience. At companies for example, the contemporary and varied cuisine of the Modern Recipe offering, rolled out in 9 countries and associated with new space layouts, off ers a variety of food options throughout the day, facilitating contacts and collaboration while boosting employee well-being and performance. To cultivate their creativity and encourage the sharing of culinary cultures, Sodexo off ers dedicated training programs such as the Chef Academy and international exchange programs like Global Chef. The spirit of sharing is also central to the online cooking classes given by Sodexo chefs during and after the Covid-19 pandemic to help consumers during these unprecedented times. Sodexo teams also draw inspiration from discussions with suppliers, researchers, food experts and partners to invent the food of tomorrow with consideration for issues including sustainable supply. Sodexo demonstrates it again with the Future Food Collective initiative and the Group’s membership in the European Code of conduct on responsible business practices and marketing aimed at obtaining a collective commitment to transitioning to a sustainable food system. Innovation on the menu Culinary expertise and commitment to initiatives such as “Future 50 Foods” ensure that Sodexo is part of the necessary food transition. As a change-maker and in accordance with its ambitious goals, especially in terms of fighting climate change and promoting animal welfare(2), Sodexo strives to ensure that its meals off er both quality and enjoyment. With its ability to support changes in the food choice behaviors of millions of people, Sodexo encourages the consumption of varied, healthful and responsible foods in all its activities. Businesses, schools and healthcare facilities are enjoying more and more local, organic and seasonal off erings as well as options for special diets. Sports fans and visitors to convention centers can now fi nd new plant-based options, such as the ImpossibleTM Burger, prepared with care by the Sodexo Live! teams in the U.S. To better satisfy consumers and improve its practices, Sodexo is introducing new sustainable supply solutions, such as its partnership with Vertical Harvest in the state of Maine, an urban hydroponic farm and the fi rst vertical greenhouse in the United States, which will supply 80% of the lettuce needed at Sodexo’s university campuses and partner sites. This strong commitment to responsible culinary innovation can also be found in the new delivery offerings, such as FoodChéri in France, whose nutritionally balanced dishes are made from mainly organic and local ingredients, The Good Eating Company, a fl exible model for local meal preparation and delivery, and Nourish Inc., which offers seasonal, organic and GMO-free plant-forward dishes in 25 diff erent culinary styles to ensure optimal consumer satisfaction. 1 A study conducted by Sodexo and the University of Ottawa’s LIFE Research Institute. 2 Sodexo is a founding member of the Global Coalition for Animal Welfare (GCAW). S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com I M P A C T Culinary innovation serving the most vulnerable In France, with the launch of Mixons moins, mangez mieux (Mixing less and eating better), Sodexo is off ering a compre- hensive approach to improving the meal experience for people with disabilities. Developed together with a c ommittee of para- medical experts, this innovative initiative is designed for live-in medical facilities and specialized care homes. With a new food texture suited to their particular motor skills and sensory capacities, residents fully enjoy their meals, rediscover certain fl avors and develop autonomy safely. This comprehensive approach includes a training and monitoring program for teams of cooks and assistants as well as the on-site organiza- tion of a multi-disciplinary m onitoring c ommittee. Hyperlocal production for the benefi t of all To support the transformation of the global food system, hyperlocal production – in other words producing food right where it will be consumed – has been developed as one sustainable solution. In Finland, the teams of the Sodexo restaurant on the Keilalahti campus in Espoo have designed an on-site production space which reinvents the supply of vegetables for the preparation of a high-quality off ering of vegetarian and vegan dishes. Similar initiatives are being rolled out by other Sodexo chefs around the world, like at the Blue Bear Farm in Denver, created by Sodexo Live! and its local partners to serve visitors to the Colorado Convention Center. GOAL 33% OF PLANT-BASED DISHES IN MENUS BY 2025 3 5 5,402 DIETITIANS EMPLOYED BY SODEXO WORLDWIDE Promoting changes in eating habits To support its commitment to propose 33% plant-based dishes in our menus by 2025, Sodexo has launched the Future Food Collective; a collaborative research initiative bringing its chefs together with industry experts and key suppliers to reshape consumption habits. By partne- ring with NGOs such as the Food for Climate League, the Future Food Collective is gathering insights to develop new plant- based innovative solutions that encourage consu- mers to prefer healthy, sustainable foods that are more respectful of the environment. “Health and well-being are priorities that have been gaining popularity for consumers. At Sodexo, those subjects have always been top of mind, particularly with our 5,400+ dietitians worldwide who work to create a healthy and meaningful off er to suit a range of consumer profi les. The newly launched Better Choices campaign provides meals that are scientifically researched and evidence-based; they’re created to support consumers achieve a healthy lifestyle and combat rising global obesity. We’ve conducted numerous studies and worked closely with several medical professionals to deliver what the consumer wants and what their health demands in a clear and informative way. We want to help facilitate their healthy lifestyle journey and that starts with the right nutrition and education.“ Wan Mak, Head of Nutrition and Dietetics, Sodexo UK & Ireland S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T #NEW FOOD EXPERIENCES At a time marked by changing behaviors and expectations related to food services and dining habits, some of which have been infl uenced by the increase in remote work and meal delivery during the pandemic, Sodexo accelerates its transformation to off er multimodal and multichannel meal experiences and make life easier for everyone. D uring Fiscal 2021, Sodexo’s teams continued mobilizing t o m e e t t h e i r c l i e n t s ’ pandemic-time business continuity needs, adapting service off erings to reinforce the necessary focus on safety and hygiene and creating the conditions needed for recovery. This unprecedented period gave rise to new, temporary or permanent, solutions and services centered around the needs of organizations and individuals. 3 6 A unique multi-channel meal off ering Knowing that in certain markets, there has been a need for change in the way consumers access Foodservice off erings, Sodexo accelerates its transformation to prepare and deliver quality meals to consumers, on site or remotely, and provide them with fl exible solutions that match their expectations. Its unique Meal off ering is based on complementarity with its On-site Services, delivery off erings and Benefits & Rewards Services. It is now especially relevant for clients who are looking for solutions to accommodate staff working under more hybrid conditions. This 360° off ering is now being implemented by over 30 corporate contracts in France, including Oddo, Novartis and Microsoft , which have been able to count on the adaptability and modularity of Sodexo’s service off erings. Reinventing on-site Foodservices The Group’s ability to provide innovative on-site Foodservices tailored to consumer and client needs continues to expand beyond the traditional off ering. Depending on the needs of each organization, Sodexo is able to expand its customizable solutions in terms of retail sales, vending machines as well as welcoming coffee break areas. For SMEs or in establishments without on-site production capabilities, Sodexo is developing specific offerings such as Brio! in Italy, with lunches freshly prepared in Sodexo’s cloud kitchens and delivered to client sites. Sodexo is also forming innovative partnerships with suppliers and startups . In the United States, for example, the Group has developed an unprecedented collaboration with HelloFresh, a global leader in boxed meals, for over 300 universities via its app BiteU. The development of high-performance technology platforms also allows the Group to continually offer contactless solutions and other practical services. In the United Kingdom, the app Twelve off ers automatic check-out functions to make it easier for people to place orders from their workplace. In the Netherlands, the ordering, payment and delivery platform Your Order opens up access to meal options at any time of the day. And with data analysis and artifi cial intelligence, Sodexo is fi ne-tuning its off ering while increasing operational efficiency, for example using delivery robots on U.S. campuses, developing smart vending machines and Scan & Go options for self- checkout with a smartphone. Introducing complementary delivery off erings The Group is also continuing its targeted investments to develop localized off erings, in particular in foodtech startup, capitalizing on their agility and differentiating positionings. In France, Sodexo is already reaching consumers in their homes and offi ces with FoodChéri, which is now also available in Belgium, and with the Seazon home-delivery off ering. In the United Kingdom, the Group acquired Fooditude for deliveries of a premium food offering to London businesses. The Good Eating Company has also launched a new workplace food- delivery solution for urban markets, an off ering that Sodexo is now exporting to North America. In the United States, Sodexo has also acquired Nourish Inc., which distributes on-site and delivers fresh, plant-based meals, and Foodee, aggregators of over 800 local restaurants in 14 cities of the United States and Canada. A wide range of Foodservice options thanks to Meal Pass With its robust business model and the development of its Benefits & Rewards Services, Sodexo is able to improve the employee experience and adapt it to changing needs and new consumer trends. Over 370 partnerships have been signed around the world with restaurants and online grocery stores as well as meal delivery platforms such as JustEat Takeaway.com and UberEats. These partnerships allow consumers, whether working on site or at home, to enjoy a diverse and fl exible meal experience with easy, fast and secure payment solutions. For partner merchants and restaurants, they’re also a major business opportunity. In addition to having access to a very wide range of meal choices, French and Belgian holders of the Sodexo Pass can also support small businesses and fi ght food waste by purchasing surplus food at lower prices via the app of our partner Phenix. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com I M P A C T A quality off ering even without a kitchen on site Thanks to its off -site kitchen model, Nourish Inc., acquired by Sodexo in early 2021, brings Ame- rican consumers access to near- ly 25 diff erent styles of balanced menus on a large scale. Every day, whether a business has a kitchen on site or not, Nourish Inc. delivers its staff high quality, healthful food made with a large share of organic and GMO-free ingredients. New off erings from food tech The very fi rst ultra-fresh meal delivery subscrip- tion service adapted to new hybrid work modes, Seazon delivers tasty meals in line with consu- mers’ nutritional needs, tastes and food prefe- rences to individuals working at offi ces, from home or at other sites in France and Belgium. FoodChéri is also reinventing the on-site Foodservice experience by designing digital corporate cafeterias with Corner, a customized click & collect solution coordinated by a FoodChéri Corner Manager, and Shop, an on-site or click & collect gourmet meal experience available any time of day. Smart technologies for better service Whether for innovations in meal preparation or delive- ry, Sodexo is continuing its investments and forming new partnerships to off er consumers greater fl exi- bility and more options. In the United States, Sally the robot prepares salads, on an on-demand basis, from a choice of over 22 fresh ingredients, and the SavorEat robots use 3D printing to make plant-based burgers for U.S. universities. At campuses, thanks to the development of artifi cial intelligence and sensor technology, students can also take advantage of contactless and car- bon-neutral robot delivery services via the Sodexo Bite+ app with the new partnership with Kiwibot. Expanding delivery off erings in the United Kingdom By acquiring a controlling stake in Fooditude, a supplier of premium Foodservices in London, Sodexo further increases the diversity of its off ering in the United Kingdom while benefi tting from a high-performance central production unit for a faster roll-out of delivery solutions such as Good Eating Company Delivered, launched in the summer of 2020. 3 7 Rethinking the employee meal experience In January 2021, Ama- zon’s Indian subsidia- ry entrusted Sodexo’s Benefi ts & Rewards Services team with the task of making 100% digital Sodexo Passes available to its 100,000 employees. Every employee can now enjoy a fl exible experience at the nearest restaurant or shop, as well as at the company restaurant and via the main delivery platforms, and pay right in the Sodexo-Zeta app. Adapting the service off ering to serve in the long-term Everywhere that Sodexo operates, its teams innovate by off ering tailor-made solutions for every situation, to feed, serve and care for staff while boosting its business dynamics. Because of its size and strict safety protocols, workers at the Phillips 66 refi nery in Ponca City (Oklahoma) were not easily able to access the on-site food options Sodexo off ered. The solution provided by the team was to bring a comprehensive, high-quality food off ering directly to the worksite with the Sodexo Grill Foodtruck, allowing each employee to get a meal without unnecessary hassle. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T #WORKPLACE TRANSFORMATION Accelerating change in all business sectors, the pandemic has signifi cantly impacted the ways of working of millions of people. With this new reality, business and government leaders have been faced with new challenges and must search for eff ective and effi cient solutions. A new “collaborative pact” combining well-being at work and performance now seems necessary to attract employees in search of fl exibility and hybrid collaborative working modes, secure their loyalty and increase their engagement. A s a world leader in Quality of Life services, Sodexo is the expert its clients trust to redesign their work spaces to make them fl exible, dynamic and modular, and to reinvent employee experience to enhance their well-being and boost performance and innovation. 3 8 Establishing trust and confi dence for a safe return to the workplace Regardless of their environment, for example at a corporate site or a hospital, clients and consumers feel safe counting on Sodexo’s expertise in terms of risk evaluation and protection of staff and premises, ensured by a wide range of services ranging from disinfection to contactless services. To bring them the guarantees they need for a confident return to the workplace, Sodexo has set up a Medical Advisory Council tasked with offering a technical orientation and validating health and safety protocols for its services, and calls upon the expertise of Bureau Veritas to certify the quality level of its procedures and services. Reinventing the consumer experience at a time when habits are changing Listening to the communities it serves, Sodexo is constantly adapting its off ering and processes to propose solutions and services adapted to their needs. For example, it is helping U.S. campuses redefi ne their spaces and optimize their attractiveness, such as at Binghamton University in Vestal, New York, where Sodexo's range of expertise has improved the environment and student engagement while generating substantial savings. In Energy & Resources, buoyed by the development of innovative technology, Sodexo has put all its expertise to adapt to extreme working conditions and improve the daily life of residents at remote sites. For example, smart glasses now make remote maintenance possible, while the MyWay app, used from mining sites in Australia to offshore platforms in the North Sea, is devoted entirely to users’ daily needs. At hospitals, Sodexo is also adapting its service offering to stay in closer step with changes in working modes, for example using artifi cial intelligence in its predictive analysis program Experiencia to assist care teams with time and stress management. For Business & Administrations clients, Sodexo is developing Vital Spaces, a unique approach to optimizing experiences and designing hybrid and fl exible workplaces. To meet the specific needs of each organization, this approach includes strategy consulting, workplace design, technical facility management and services for employees as well as digital solutions and data analysis. Sodexo thus implements a full range of services to meet the challenges of this transformation, with multimodal, on-site or remote Foodservices (see previous page), Facilities Management services, digital Concierge services and Homecare services. Optimizing workplaces for enhanced effi ciency and employee well-being According to the 2021 Microsoft Work Trend Index, 66% of company CEOs plan to change the layout of their workplaces and improve their employee experience. With its global experience, a large network of partners and a unique understanding of t h e n e e d s a n d e x p e c t a t i o n s o f organizations, Sodexo helps them build relevant strategies with its comprehensive off erings combining the Group’s know-how and technological innovations. Sodexo’s corp-up, Wx.Company, is helping organizations adapt their work experience using ethnography, the IoT and data analysis. It offers consulting services – Wx.Studio – and digital solutions developed by Wx.Solutions. In providing services to an international audit firm for example, Wx.Solutions has made it possible to optimize the use of spaces and to accommodate 500 additional employees in its existing offices by introducing 3,000 sensors. Sodexo and Wx have also developed a SaaS platform, designed to help decision-makers understand the real use of spaces and make it easier for them to adjust their work environment to the usages and strategy of the client. These technological solutions offer clients the advantage of optimized and personalized management by Sodexo and complement the existing off erings – reception, safety, technical maintenance, waste management and concierge services – to create a continuum of high added-value services for organizations. By ensuring flexible use centered around humans in work environments to stimulate collective performance, integrating remote work practices, which are now part of the culture of each organization, and bringing staff continuous advantages, whether they’re on site or working remotely, Sodexo helps its clients improve collaboration , productivity and well-being of their employees. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com I M P A C T Personalized and holistic services with Vital Spaces By supporting organizations in their implementation of global solutions to serve the performance and quality of life of employees, Sodexo is affi rming its leadership in the management of workspaces. With the objective of im- proving the post-Covid experience of employees, Sodexo has been awarded the extension of a major contract by a leading pharmaceutical group for the management of sites in seven countries. With Vital Spaces and the exper- tise of Wx, Sodexo is working with the client to design and off er a holistic hospitality solution, based on the analysis of the customer journey. The Group is off ering a wide range of services adapted to each site, including catering, Circles digital concierge services, as well as cleaning ser- vices, energy management, etc. To support the client’s operational effi ciency, Sodexo will also provide a full suite of business intelligence and reporting technologies, and the Twelve application will allow certain sites to further enhance the employee experience. Strengthening digital service off erings Circles, Sodexo’s concierge services, has stren- gthened its digital off erings designed to sup- port employee engagement wherever they are, their quality of life, team cohesion and social ties. Circles off ers a wide range of well-being services, remote and on site, a real personal assistant with a positive impact for all the needs of daily life, both professional and per- sonal. Circles promotes professional exchanges and times of sharing and conviviality between employees and thus contributes to the perfor- mance of organizations. Sodexo recognized for its Facility Management expertise On December 11, 2020, Sodexo was awarded the 2020 Innovation Prize by the International Facility Management Association (IFMA) for its exceptional contribution to facility management business lines and its development of the digital app “Covid-19 Business Management & Operations”. This decision-making and real- time management tool was developed in January 2020 by the Corporate Services segment with the goal of ensuring the operational continuity and safety of working environments at several thousand client sites around the world. 3 9 78% OF ALL ORGANIZATIONS EXPECT THEIR WORKPLACE TO BE ADAPTED SO IT CAN PERFORM ADDITIONAL LABOR-RELATED FUNCTIONS. Source: Fit for Future: The impact of Covid-19 on workplace and portfolio strategies – Avison Young UK, HLM Architects and real estate works. “While traditional Facili- ties Management and workplace Foodservices have always been a key part of our operations, Vital Spaces takes us even further. We are able to support our clients with a 360° people-focused approach to improve their employees’ day-to-day experience and by redesigning their work spaces.” Julie Ennis, CEO Corporate Services, Sodexo UK & Ireland A redesigned head offi ce in Canada In a context marked by new hybrid working methods, and with the expertise of Circles and Wx, the head offi ce of Sodexo Canada in Montreal, was transformed in September 2020. It was designed according to employee expectations gathered during the project design phase and organized around seven essential factors: air, water, movement, light, sound, ambiance and food. Flexible, inclusive and inspiring, this environment designed for optimal energy effi ciency and sustainability was created to stimulate engagement and teamwork, both on and off site, under strict conditions in terms of health and safety and talent recruitment, while keeping property costs down. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T #SOCIAL IMPACT The Group’s economic development is inseparable from its positive social impact. With solid footing in each of its regions, Sodexo simultaneously plays a role in social integration, in particular by hiring individuals who may have experienced diffi culties to fi nd employment, in social cohesion, due to the human dimension of its business, and in social mobility and community development. 4 0 S ince Sodexo’s performance is fi rst and foremost the result of the daily investment of its teams, the Group strives to off er its staff safe, motivating and open work environments, in which diff erences and team spirit drive innovation and growth. An absolute priority in the context of the pandemic, measures to safeguard employee health, safety and well-being are anchored in their day-to-day experiences and, despite particularly challenging conditions, the frequency of lost time injury declined over the course of the year. In a process focused on continuous improvement, the Group further increased its commitments in March 2021 by signing an unprecedented declaration of intent with the IUF(1) on promoting employee rights to a safe and healthy working environment. Everywhere, Sodexo applies a responsible approach to ensure compliance with the United Nations’ guiding principles and the International Labor Organization’s Fundamental Rights at Work. The Group’s strong commitments to integrity, job creation and entry into the job market are essential to the economic growth and social development of local communities. In France, 25% of its teams come from priority neighborhoods and the first apprentices to enroll in the fi rst multi- company culinary training center CFA des Chefs were hired by Sodexo upon graduation. Sodexo also assists its teams by providing ongoing training and fi lling positions via internal promotion. In the United Kingdom, for example, with nearly 20% of the engineering staff (electricians, plumbers and so on ) reaching retirement age by 2026, Sodexo has taken steps to fi ll the upcoming position vacancies by launching a technical apprenticeship academy. In the United States, Sodexo has created a 10 million dollar scholarship program, that will be available to more than 85,000 on-site employees and their families to access the funding they need to get a college degree. Diversity, equity and inclusion: performance drivers Respect for and acceptance of all diff erences and eff orts to fi ght all forms of discrimination – culture, ethnicity, age, sexual orientation and identity, etc. – are central to the Group’s commitments. This culture of diversity, equity and inclusion is not only a moral imperative but also an essential condition for innovation and performance. The Group adheres to the UN’s principles on the empowerment of women, which aim to increase their power at the workplace and in their communities, and making progress year aft er year to achieve its ambitious goals. More and more initiatives have been launched around the world to benefi t women, for example increasing their presence in technological careers and operational management positions, as can be seen in the partnership with the Brazilian Institute of Engineering that aims to encourage such vocations. Recognized for this commitment, Sodexo has joined the Gender and Diversity Alliance initiative and has been included for the fourth year running in the Bloomberg Gender-Equality Index. Day in and day out, Sodexo’s teams take action to ensure a more open, fair and inclusive society, rallying around causes devoted to eliminating all forms of racism (Black Lives Matter, Stop Asian Hate, etc.). Sodexo is also proud to have reached a new milestone in the area of inclusivity for people with disabilities by obtaining a score of 100% in the U.S. Disability Equality Index and is also recognized as one of the world’s best organizations in terms of inclusivity for LGBTQ+ individuals (Workplace Pride Advocate). An essential role in the development of communities Sodexo is a key player in improving the communities in which the Group operates. Whether by supporting purchasing power or optimal balance in people’s lives or by helping grow the revenues of affiliate merchants, Sodexo’s teams make individual and group needs the central focus of their daily commitment. With this same awareness of its responsibilities and social impact, Sodexo is having positive infl uence on the local economies via a responsible procurement policy that is more fair, inclusive and sustainable. The Supply Chain Inclusion Program launched in North America in 2001, which is now operational in most of our regions, aims to promote the development of SMEs and other businesses that actively promote diversity and inclusion. Sodexo’s social impact can also be measured in terms of the support that its services and initiatives provide to populations in need. In Panama, Sodexo participated in the Panama Solidario program set up by the government and was able to support 275,000 families facing poverty or that are vulnerable to the eff ects of the pandemic by distributing vouchers that can be used to buy food, healthcare and hygiene products. Many solidarity initiatives are also underway, such as Stop Hunger, which works ceaselessly to fi ght food insecurity, and the involvement of 24 Sodexo kitchens in France in partnership with Phenix and Too Good To Go in helping students who are experiencing poverty. 1 IUF: International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com I M P A C T OBJECTIVE OF 10 BILLION EURO OF OUR BUSINESS VALUE BENEFITTING SMEs BY(cid:98)2025 8.5 MILLION MEALS DISTRIBUTED BY STOP(cid:98)HUNGER DURING THE COVID-19 CRISIS Driving social innovation In France, Sodexo is spearheading a new business model that aims to make a positive social impact in priority neighborhoods. One of its projects, La Passerelle, won the Quartiers Fertiles call for projects launched by the Agence Nationale pour la Rénovation Urbaine (French national agency for urban renewal). This building slated to open in Clichy-sous- Bois in early 2022 is designed to increase employability for local residents, improve health, forge closer social cohesion and connections and make the community more attractive. The activities at this center – vegetable processing plant, daycare facility, training room and community space – designed with and for local residents, should create around 20 direct jobs and benefi t more than 500 families. Collective mobilization to face the pandemic With teams on the front-line since the start of the pandemic, Sodexo demonstrates its expertise and agility in making optimal use of its resources in support of the public interest and to serve populations. In the United Kingdom, thanks to the Department of Health and Social Care’s renewed trust, Sodexo is one of the main operators of Covid-19 testing centers in the country. In France, the SoVacc solution, designed to support the introduction and complete management of vaccination centers, was selected by Resah(1) and is being rolled out gradually to assist with the vaccination campaign. To support its employees, Sodexo has implemented a number of measures for facing the consequences of the pandemic: redeployment of teams, remote medical consultations, improvement of healthcare and contingency coverage, psychological support with the Sodexo Supports Me counseling system, remote training, fi nancial aid, global support system of 30 million euros, vaccination facilitation measures, etc. 4 1 Acting to promote supplier inclusion in France Launched in France in March 2021, the Impact+ program, which aims to accelerate the expansion of virtuous ecosystems addres- sing the labor-related, societal and environ- mental issues that matter to Sodexo, is plan- ning to support suppliers that are involved in an inclusive approach: businesses that pro- mote entry into the workforce, the protected/ adapted work sector, fi rms active in the social and socially responsible economy or located in a priority neighbo- rhood or a rural revi- talization zone. IMPACT Le programme Achats Inclusifs de Sodexo Supporting social programs For the second year in a row, Sodexo Benefi ts & Rewards Services has signed an agreement with the muni- cipality of Cuauthémoc, one of the 16 districts of Mexico City, to facilitate the implementation of their social programs. Thanks to the Tienda Pass card, 5,200 benefi ciaries and their families in extreme poverty can access essential food products. In addition, Sodexo’s teams are continuing to work closely with the municipal government to remediate the eff ects of the pandemic and improve residents’ quality of life. 1 Réseau des Acheteurs Hospitaliers (hospital purchasers’ network): a public interest group whose mission is to support the pooling and professionalization of purchasing in the healthcare sector , both public and non-profi t private. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T #ACT FOR CLIMATE Protecting natural resources is a major priority and challenge for all organizations. Since 2010, Sodexo has been working with its clients, suppliers and partners as well as the World Wildlife Fund (WWF) to measure and reduce its carbon emissions, both direct and indirect, throughout its value chain. 4 2 W i t h t h e g o a l o f reducing its carbon emissions by 34% by 2025 (compared to 2017 ), which was a p p r o v e d b y t h e Science-Based Target initiative (SBTi) in 2019, Sodexo has become the first company in the Foodservices sector to have a carbon target in line with the Paris Agreement objective of limiting climate warming to 1.5°C. Tangible progress having been made in terms of direct emissions (Scopes 1 and 2), Sodexo is now focusing its efforts on reducing indirect emissions (Scope 3). The Group’s progress is a significant advantage for its clients and partners, who rely on its experience to achieve their own sustainability goals. Preventing and reducing food waste To reduce carbon emissions, fighting against food waste is a priority for Sodexo, the fi rst Foodservices fi rm to have linked part of its fi nancing to this goal. An active member of the UN’s Champions 12.3 initiative, the Group is launching initiatives associated with its global program WasteWatch, which is designed to cut its food waste in half by 2025 (vs. 2019 level). To this end, the Group is training its chefs, site managers, kitchen staff and other employees to constantly strive to reduce food waste. Promoting sustainable food choices In addition to the health benefits for consumers, a varied, sustainable and plant-forward diet is also a way to signifi cantly reduce carbon emissions. Sodexo is helping raise its consumers’ awareness of the environmental impact of their food choices, and encouraging them to eat differently by offering sustainable dishes and tasty plant- based offerings. For instance, an Ecoscore rating is now provided with each dish prepared by FoodChéri, the fi rst player in Foodservices in France to make such a commitment in response to environmental issues. Increasing local and responsible procurement Because almost half of its carbon emissions are linked to its supply chain, Sodexo is committed to promoting sus- tainable and local agriculture, co-deve- loping products and services based on circular economy principles and improving the effi ciency of its resources. Convinced that only a joint strategy im- plemented together with all the players in the sector can guarantee eff ectiveness protection of the natural ecosystem, Sodexo is developing a global sustai- nable approach based on cooperation with its clients, suppliers, public autho- rities and partner or competitor bu- sinesses. Together with nine other world leaders in the food industry, the Group has founded the 10x20x30 initiative, in which partners and their 20 priority suppliers commit to introducing common processes for measuring waste throughout the value chain. Promoting innovative energy solutions Sodexo has committed to ensuring that by 2025, 100% of the electricity it uses at its self-operated sites will be renewable, and aims to encourage its clients to also adopt this goal by using its complete energy management services (see following page). These services, which, by defi nition, include an energy strategy, upgrading for com- pliance, and the supply, monitoring and implementation of technologies designed to improve energy effi ciency, have already allowed client companies to achieve annual savings and obtain signifi cant returns on their investments. The results of this active strategy in terms of climate impact are very clear. Since 2017, Sodexo has already reduced its Scope 1 and Scope 2 carbon emissions by 37.2% and those of its Scope 3 supply chain by 23.2% (in absolute terms). The Group is also known for its initiatives at a global level. In December 2020, Sodexo became the fi rst (and only) Foodservice and Facility Management sector fi rm to join the “A list” of leaders in the fight against climate change of the CDP (formerly Carbon Disclosure Project), a standard-setter in corporate environmen- tal transparency. Sodexo is also proud to have been ranked for the 16th year in a row among the leading fi rms in the Dow Jones Sustainability Index (DJSI) and to obtain the highest scores in the environmental and social categories. These recognitions from institutions and indices devoted to corporate responsibility reflect the importance Sodexo places on this issue as well as the progress the Group has made. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com I M P A C T “By engaging the Group in 2019 to align its climate ambition with the 1.5°C target of the Paris Agreement, Sodexo has shown leadership at the global level as one of the first companies to propose such a level of mitigation. This commitment by one of the biggest catering, hospitality and food retail services groups demonstrates its sense of responsibility to tackle its carbon footprint. Sodexo must keep engaging all teams on the implementation of this target, through a robust carbon reduction plan, as well as adapted decisions and means.” Arnaud Gauffi er, Conservation Director, WWF France Fighting deforestation Since it is the major cause of climate change and biodiversity loss, Sodexo has committed to eliminating deforestation from its supply chain by 2030. In partnership with the WWF, the Group is improving its procurement by increasing the percentage of products certifi ed deforestation-free and focusing its eff orts on those with the greatest impact, namely beef, soy, palm oil and paper. Sodexo has signed the WWF’s public statement to the European Commission for “new regulations on all raw materials” aimed at halting deforestation and supporting transparency throughout all supply chains. The statement’s signatories also recommend changes to the existing regulations, which should also cover products that present a risk of converting and damaging natural ecosystems. Sodexo leads change for better effi ciency from resources Sodexo has set strict rules in terms of monitoring the origin of each product it uses and continually evaluating the commitment of its suppliers. To reach its goals, the Group is focusing on local supply chains, promoting plant-based foods, fi ghting food waste and ensuring that products, especially paper, are recycled. Going beyond the European legislation on single-use plastic, Sodexo has opted to eliminate plastic take-out bags, straws, plates, cutlery and coffee stirrers, replacing them with new and more sustainable versions made of paper, cardboard, wood or fi ber, and is studying sustainable alternatives to other plastic items used at its Foodservice sites in Europe. CARBON EMISSION REDUCTION COMPARED TO 2017 LEVELS 37.2% SCOPE 1 AND 2 23.2% SCOPE 3 – SUPPLY CHAIN 4 3 Working together to fi ght food waste To eff ectively fi ght food waste and have a decisively positive impact, a concerted eff ort is needed from all players in the food chain. Sodexo is proud to combine its strengths and expertise with those of other member companies of the International Food Waste Coalition (IFWC) as part of a collaborative “from fi eld to fork” approach aimed at fi ghting food waste. Sodexo is also continuing the roll-out of its WasteWatch program. As of August 31, 2021, nearly 900 of its sites were involved, reducing food waste by an average of 45.8%. The Group is launching more and more initiatives, both international, such as WasteLESS Week, and local, like Wasteful to Tasteful at 200 sites in the United Kingdom. Climate strategy and energy solutions By committing to using 100% renewable electricity in its operations at its self-operated sites by 2025, Sodexo joins RE100, a global initiative bringing together some of the world’s most infl uential businesses that have committed to leading the transition to 100% renewable electricity. This move is part of the Group’s climate strategy aimed at reducing its carbon emissions by 34% by 2025. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T F I N A N C I A L I N D I C A T O R S Financial indicators Aft er a year signifi cantly impacted by the pandemic during which Sodexo demonstrated its resilience and the relevance of its business model, our Fiscal 2021 results show a solid pick-up in activity and better than expected performance. Our actions to renegotiate our client contracts, strictly control costs and implement the GET effi ciency program are clearly visible in our better-than-expected Underlying operating profi t margin. At 483 million euro for the year, our free cash fl ow has been very positive. Our net debt ratio improved to 1.7, and liquidity is stronger than ever at 6.4 billion euro. We are also actively managing our portfolio of services and activities to enhance the Group’s performance. The recovery is continuing into Fiscal 2022, with ongoing growth and margin improvement.” MARC ROLLAND Group Chief Financial Offi cer EVOLUTION OF CONSOLIDATED REVENUES AND ORGANIC GROWTH ON-SITE SERVICES REVENUES BY ACTIVITY AND CLIENT SEGMENT 20,698 20,407 21,954 +1.9% +1.6% +3.6% 19,321 17,428 -5.6% 4 4 -12.0% Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Group consolidated revenues (in millions of euro) Organic growth (in percentage) * Including Personal & Home Services. Revenues by activity 96% On-site Services* 4% Benefits & Rewards Services Healthcare 22% Corporate Services 23% Seniors 7% Universities 8% Healthcare & Seniors 29% Business & Administrations 53% Education 18% Energy & Resources 10% Government & Agencies 7% Schools 10% Sports & Leisure 2% Others 11% Foodservices 54% 46% Facilities Management services ON-SITE SERVICES REVENUES BY REGION BENEFITS & REWARDS SERVICES REVENUES BY REGION* NORTH AMERICA 39% 6,514 million euro EUROPE 42% 7,002 million euro LATIN AMERICA 34% EUROPE, ASIA, UNITED STATES 66% ASIA-PACIFIC, LATIN AMERICA, MIDDLE EAST & AFRICA 19% 3,171 million euro 440,000 clients 36 million benefi ciaries and consumers 1.3 million affi liated merchants * Excluding Rydoo revenues. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com F I N A N C I A L I N D I C A T O R S UNDERLYING OPERATING PROFIT BEFORE CORPORATE EXPENSES & INTRAGROUP ELIMINATION BY ACTIVITY AND CLIENT SEGMENT SHAREHOLDERS AS OF AUGUST 31, 2021 Business & Administrations 15% ON-SITE SERVICES* 72% PUBLIC 54.8% Foreign Institutional shareholders 38.6% BENEFITS & REWARDS SERVICES 28% Education 11% Healthcare & Seniors 46% French Institutional shareholders 11.6% * Including Personal & Home Services. BELLON SA 42.8% EMPLOYEES* 1.6% Individual shareholders 4.6% TREASURY SHARES 0.8% UNDERLYING OPERATING PROFIT AND OPERATING MARGIN 1,340 6.5% 1,200 1,128 5.5% 5.5% 569 578 2.9% 3.3% Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Underlying operating profit (in millions of euro) Operating margin (in percentage) NET DEBT AS A PERCENTAGE OF SHAREHOLDERS’ EQUITY* 67% Source: Nasdaq * Including shares resulting from restricted share plans held in registered form by employees and still subject to a lock-up period. SODEXO SHARE DATA SHEET 4 5 • Main listing place: Euronext Paris - A Compartment • ISIN code: FR0000121220 • Mnemonic cod: SW • Main index: CAC Next 20, SBF 120, CAC 40 ESG, Euronext 100, CAC All Share, FTSE4GOOD • Euronext listing date: March 2, 1983 KEY INDICATORS OF FISCAL 2021 as of August 31, 2021 38% 27% 17% 47% 347% Cash conversion** • Total number of shares: 147,454,887 shares • Closing price: 70.02 euro • Market capitalization: 10.3 billion euro • Sodexo share price trend during Fiscal 2021: +16.8% • CAC 40 trend during Fiscal 2021: +35.0% • Underlying earnings per share: 2.37 euro • Dividend per share: 2 euro*, which includes a recurring 1.20 euro Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 • Number of interactions/shareholders meetings: 247 meetings, 314 companies, 544 contacts. * Debt net of cash and cash equivalents, restricted cash and fi nancial assets related to Benefi ts & Rewards Services activity, less bank overdraft s. ** Free cashfl ow/Net profi t. * Submitted for approval at the Shareholders Meeting of December 14, 2021. For more information, see chapter 3 of the Universal Registration Document and www.sodexo.com S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T N O N - F I N A N C I A L I N D I C A T O R S Non-fi nancial indicators Everywhere, Sodexo teams are fully mobilized to ensure the health and safety of all and pursue the Better Tomorrow 2025 corporate responsibility roadmap to contribute to a better future. Due to the Covid-19 pandemic, Sodexo faced an unprecedented decline in business, signifi cantly impacting its non-fi nancial performance and the C ompany’s workforce. The Group has nevertheless continued its eff orts, particularly in terms of food waste, employee training and inclusive and sustainable practices. Disclosure and transparency Sodexo is convinced that clear, comparable and accessible information on its fi nancial and non-fi nancial performance, enables all of its stakeholders to make informed decisions. Since Sodexo’s creation, its fi nancial, social and environmental performance has been publicly disclosed in the Universal Registration Document. To ensure transparency, the information and indicators have been audited by an independent third party for each of the past ten years. 01 02 IMPROVE THE QUALITY OF LIFE OF OUR EMPLOYEES, SAFELY ENSURE A DIVERSE WORKFORCE AND INCLUSIVE CULTURE THAT REFLECTS AND ENRICHES THE COMMUNITIES WE SERVE EVOLUTION OF WORKFORCE BY GEOGRAPHIC AREA 4 6 460,663 470,237 427,268 422,712 412,088 Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Asia-Pacific Latin America, Middle East and Africa Europe North America EMPLOYEE ENGAGEMENT RATE 80.1% 78.3%(1) 80% Fiscal 2020 Fiscal 2021 2025 OBJECTIVE 82% employee retention rate 0.71 lost time injury rate (-0.06 pt yoy ) 8% internal promotion rate for On-site managers 10H of training on average provided annually per employee (+1h yoy) PERCENTAGE OF OUR EMPLOYEES WHO WORK IN COUNTRIES WHICH HAVE GENDER BALANCE IN THEIR MANAGEMENT 46.0% 46.7% 100% Fiscal 2020 Fiscal 2021 2025 OBJECTIVE 83.7% of the workforce work in countries with a non-discrimination policy that includes sexual orientation and gender identity WORKFORCE BY GENDER AND BY CATEGORY (as of August 2021) Board of Directors (excl. employee representatives) Executive Committee 40% Men 71% Men 10 people 17 people 60% Women 29% Women Group Senior Executives Employees 57% Men 45% Men 185 people 412,088 people 43% Women 55% Women 1 2021 employee engagement survey sent to 336,183 Sodexo employees of whom 63% responded (vs 59% the previous year) . S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com N O N - F I N A N C I A L I N D I C A T O R S 03 07 FOSTER A CULTURE OF ENVIRONMENTAL RESPONSIBILITY WITHIN OUR WORKFORCE AND WORKSPACES NUMBER OF OUR EMPLOYEES TRAINED ON SUSTAINABLE PRACTICES SINCE 2015 57,279 74,203 100% 2015-2020 2015-2021 2025 OBJECTIVE 04 PROVIDE AND ENCOURAGE OUR CONSUMERS TO ACCESS HEALTHY LIFESTYLE CHOICES PERCENTAGE OF CONSUMERS WHO ARE OFFERED HEALTHY LIFESTYLE OPTIONS EVERY DAY 73.8% 100% Fiscal 2021 2025 OBJECTIVE 05 PROMOTE LOCAL DEVELOPMENT AND FAIR, INCLUSIVE AND SUSTAINABLE BUSINESS PRACTICES BUSINESS VALUE BENEFITTING SMEs (1) in billion euro PME 4.4 6.9 10 Fiscal 2020 Fiscal 2021 2025 OBJECTIVE 06 SOURCE RESPONSIBLY AND PROVIDE MANAGEMENT SERVICES THAT REDUCE CARBON EMISSIONS REDUCTION IN SCOPE 3 SUPPLY CHAIN CARBON EMISSIONS VS 2017 -10.5% -23.2% -34% 2017-2020 2017-2021 2025 OBJECTIVE ACT SUSTAINABLY FOR A HUNGER-FREE WORLD STOP HUNGER BENEFICIARIES SINCE 2015 in million of benefi ciaries 44 51.9 100 2015-2020 2015-2021 2025 OBJECTIVE 08 DRIVE DIVERSITY AND INCLUSION AS A CATALYST FOR SOCIETAL CHANGE EMPOWERED WOMEN IN COMMUNITIES SINCE 2015 45,495 54,768 500,000 Fiscal 2020 Fiscal 2021 2025 OBJECTIVE 09 4 7 CHAMPION SUSTAINABLE RESOURCE USAGE REDUCTION IN OUR FOOD WASTE ON THE SITES HAVING DEPLOYED THE WASTEWATCH PROGRAM -45.3% -45.8% -50% Fiscal 2020 (291 sites) Fiscal 2021 (878 sites) 2025 OBJECTIVE Acting responsibly is at the heart of our mission and everything we do on a daily basis. Sodexo is recognized for these commitments and encourages its teams to make progress to reduce our impact on ecosystems. Sodexo is a member of the ESG 80, FTSE4Good, Euronext CAC 40 ESG and Dow Jones Sustainability Index and ranks amongst leaders in its sector for the 16th consecutive year. The Group is also ranked among the top companies in its sector in the SAM Sustainability Yearbook and, for the 14th consecutive year, among the best companies in the DiversityInc ranking for LGBTQ+ employees, recruitment of women of color and executive women leaders. Sodexo also holds Ecovadis Platinium certifi cation. In November 2020, Sodexo joined CDP's list of world leaders in climate change with an A rating for progressing on its carbon strategy. 1 Small and Medium Enterprises. For more information, see chapter 2 of the Universal Registration Document. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T A R E S P O N S I B L E C O M P E N S A T I O N P O L I C Y A responsible compensation policy In the interest of Sodexo and its stakeholders, and in accordance with our values, the Board of Directors ensures that the Company off ers a responsible compensation policy to deliver performance and achieve Sodexo’s long-term strategy. Our compensation policy, balancing individual and collective recognition and long- and short-term priorities, seeks to strengthen our culture of performance. In a context of rebound in activity , our objective is to attract, motivate, retain and engage Sodexo’s talents and strenghten our culture of performance.” CÉCILE TANDEAU DE MARSAC, Chairwoman of the Compensation Committee PRINCIPLES FOR COMPENSATION COMPLIANCE 4 8 COMPETITIVENESS COMPLETENESS BALANCE PERFORMANCE TRANSPARENCY ALIGNMENT OF INTEREST HIGHLIGHTS OF FISCAL 2021 Annual variable compensation adapted to the exceptional situation • Financial performance objectives were assessed every six months. The possibility of compensation for exceptional performance was excluded for this fi scal year. The return to an annual performance assessment cycle is expected for Fiscal 2022. • For the Chief Executive Offi cer, non -fi nancial performance objectives assessed over the full fi scal year, to ensure an annual perspective. November 2020 performance shares grant • For the fi rst time, a performance condition designed to measure Sodexo’s progress in reducing the carbon impact applies to all Group share plan benefi ciaries. In line with past years, the plan also includes a performance condition set to encourage the promotion of women to the highest levels of the Group’s management . • The vesting period for performance shares has been reduced from 48 to 38 months. In order to maintain the annual rhythm of shares delivery, and an equal cost to the C ompany, no performance shares were granted in Fiscal 2020. • The next performance shares award is scheduled for early 2022, with a vesting period of 36 months. The carbon impact performance condition will also apply. Announcement of a transition governance • Denis Machuel’s term of office as Chief Executive Officer was terminated on September 30, 2021. Pursuant to the remuneration policy, the Board of Directors decided to enforce the non-compete covenant with enhanced provisions, in order to protect Sodexo’s interests. • Transition governance was announced, with the appointment of Sophie Bellon, Chairwoman of the Board of Directors, as interim CEO of the Group. Supplementary compensation has been proposed for this transition period. Note: The executive supplementary pension plan approved by the shareholders at the Fiscal 2019 Annual Shareholders Meeting will be implemented during Fiscal 2022, the regulatory conditions having been detailed at the end of 2020. COMPENSATION OF THE EXECUTIVE CORPORATE OFFICERS Compensation of the Chairwoman of the Board of Directors The compensation structure applicable to the Chairwoman of the Board of Directors comprises a fi xed compensation payment and collective health and benefit plans. As the Chairwoman is a non-executive director, in line with market practices in France, she does not receive any variable compensation, either annual or multi- year. She does not benefit from a long- term incentive plan. For Fiscal 2021, the compensation paid to Sophie Bellon, Chairwoman of the Board of Directors, was 675,000 euro, equivalent to her theoretical annual fi xed compensation. As of October 1, 2021, the Chairwoman also acts as interim Chief Executive Offi cer. As such, Sophie Bellon will receive additional fi xed compensation for the duration of the interim period, bringing her theoretical total annual fixed compensation to 900,000 euro. The structure of the Chairwoman's compensation will remain unchanged during the interim period, with no variable remuneration or performance share award. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T www.sodexo.com A R E S P O N S I B L E C O M P E N S A T I O N P O L I C Y Compensation of Chief Executive Offi cer The Chief Executive Offi cer’s compensation policy is structured to achieve a balance between long- and short-term performance in order to promote the Group’s development for the benefi t of all of its stakeholders. It aims at strengthening the executive officer’s motivation and retention, while aligning his interests with those of the shareholders and the social interest of the C ompany. It consists of fi xed compensation, remunerating the responsibilities attached to such mandate, annual variable compensation, designed to encourage the Chief Executive Offi cer to achieve the annual performance objectives set by the Board of Directors, and long-term compensation, granted in performance shares. 75% SUBJECT TO PERFORMANCE CONDITIONS M IN R E T - G N O L E CE N T I V Performance shares 50% Fixed 25% Annual variable* 25% : D E S A B - E R A H S % 0 5 25% NOT SUBJECT TO PERFORMANCE CONDITIONS 5 0 % C A S H : A N N U A L C O M P E N S ATIO N Details of compensation For Fiscal 2021 • The fi xed compensation actually paid amounts to 900,000 euro. • The performance for Fiscal 2021 was assessed in two stages due to the exceptional health situation. Taking into account the achievement rate, the variable compensation for the year is 810,000 euro, submitted for approval at the Shareholders Meeting of December 14, 2021. • On November 25, 2020, the Board of Directors decided to grant performance shares to the Chief Executive Offi cer as part of his long-term incentive policy. He thus was awarded 28,000 shares subject to performance conditions, with an IFRS value of 1,681,288 . For Fiscal 2022 • The amount of fi xed compensation remains unchanged for Fiscal 2022. It will be paid on a pro rata basis from September 1 to 30, 2021, date of the end of his term of office as Chief Executive Offi cer. • T he Board of Directors has decided to set the amount of his variable compensation for Fiscal 2022 at his target level, i.e. 100% of his fixed compensation, pro rata temporis, from September 1 to 30, 2021. • No performance shares will be awarded to Denis Machuel for Fiscal 2022. Pursuant to the compensation policy, the proposed fi nancial terms of the departure of Denis Machuel include the following elements • A reinforced non-compete agreement in order to protect the Group: new competitors have been added, in particular digital players, the duration has been extended from 2 to 3 years, and more restrictive non-solicitation conditions of the Group’s employees and clients have been imposed. In return, the amount of the non-compete indemnity was revised upwards to two years of fi xed and variable compensation due for Fiscal 2021. • In recognition of his contribution to the development of the Group, which he joined in 2007 and of which he was the Chief Executive Offi cer since January 2018, and of his action during the Covid-19 crisis, the Board of Directors has decided to waive the presence condition applicable to his unvested share plans and to maintain the performance shares pro rata to Denis Machuel’s actual presence within the Group. • Denis Machuel will benefi t from health insurance and life insurance for twelve months from the end of his mandate. Summary of the compensation of the Chief Executive Offi cer Fiscal 2020 Fiscal 2021 €3,600,000 €1,800,000 €3,391,288 €1,681,288 €1,800,000 €900,000 €900,000 €675,000 €675,000 €900,000 €810,000 €900,000 €900,000 Compensation target Compensation due or attributable Compensation target Compensation due or attributable Fixed compensation Annual variable compensation* Long-term compensation * If all of the applicable targets are achieved, the annual variable compensation amounts to 100% of the annual fi xed compensation and may reach up to 150% if the targets are exceeded. For more information, see Chapter 6 on Compensation. S O D E X O F I S C A L 2 0 2 1 I N T E G R A T E D R E P O R T Get the latest news on Sodexo sodexo.com @SodexoGroup Sodexo @SodexoGroup SodexoGroup Sodexo 255 quai de la Bataille de Stalingrad 92866 Issy-les-Moulineaux Cedex 9 France Tel.: +33 (0)1 30 85 75 00