Sodexo: Solid Performance in Fiscal 2011
PARIS--(BUSINESS WIRE)--Regulatory News:
Sodexo (PARIS:SW) (OTCBB:SDXAY): At the Board of Directors meeting held
November 7, 2011, chaired by Pierre Bellon, Sodexo CEO Michel Landel
presented the company's Fiscal 2011 performance.
Fiscal 2011 performance
millions of euro
Year ended August 31
Change
excluding
currency
impacts
Currency
impacts
Total change
2011
2010
Income statement highlights
Revenues
16,047
15,230
+ 5.0
%
+ 0.4
%
+ 5.4
%
Organic growth
5.2
%
2.5
%
Operating profit
853
771
+ 10.4
%
+0.2
%
+ 10.6
%
Operating margin
5.3
%
5.1
%
Group net income
451
409
+ 9.3
%
+1.0
%
+ 10.3
%
Earnings per share (in euro)
2.95
2.64
+ 10.6
%
+ 1.1
%
+ 11.7
%
Dividend per share (in euro)
1.46
1.35
+ 8.1
%
Financial structure highlights
Net cash provided by operating activities
847
1,006
As of August
31, 2011
As of August
31, 2010
Gearing
15
%
24
%
Commenting on the results, Sodexo CEO Michel Landel said:
"In a continued tense environment, Sodexo achieved good results for
the fiscal year ended August 31, 2011 as a result of the commitment of
all our teams throughout the world. I thank them for their efforts.
These results demonstrate the relevance of Sodexo's unique
positioning and development strategy. We have become an integrator of
quality of life services and hold leadership positions in high potential
economies such as the BRIC countries. We are continuing to invest for
the future in areas such as human resources and talent development and
the implementation of our technical service offerings. While we remain
prudent given the increasingly uncertain economic context, the
objectives announced today demonstrate our confidence in our strategy,
our employees and our financial model."
Revenue growth of 5.4%
Sodexo's consolidated revenue grew by 5.4% overall to 16 billion euro in
Fiscal 2011, with organic growth of 5.2%.
This level of organic growth is double the figure achieved in Fiscal
2009 and Fiscal 2010, and exceeds the targets announced at the beginning
of the year.
Organic growth accelerated during the course of the year, in particular
as a result of the following:
the success of Sodexo's offerings, and in particular its Facilities
Management services, which in Fiscal 2006 represented only 18% of
Group revenue, rising to 25% in Fiscal 2011. In fact Facilities
Management services grew three times as fast as Foodservices in the
course of the year.
Sodexo's solid positions in the Rest of the World, and in particular
its rapid development in the emerging markets.
Revenues for On-site Service Solutions increased + 5.2% to 15.3
billion euro, with organic growth increasing +5.1%.
Fiscal 2011 highlights by client segment included:
organic growth of 6.7% in Corporate, compared with 2% in Fiscal
2010; this reflects solid development for Sodexo in emerging markets
and the significant impact of the phasing in of comprehensive service
solutions contracts in the Justice, Defense and Corporate segments.
Sodexo registered 17.9% organic growth in Justice, 6.5% in Defense and
15.9% in Remote Sites;
3.5% growth in Health Care and Seniors, resulting from an extension of
the services supplied to existing clients in North America, offset by
a short-term decline in outsourcing in Europe and the United Kingdom;
a 3.4% increase in Education resulting in particular from continuing
growth in university enrollments in North America.
Most of the 6.9% organic growth in Motivation Solutions resulted
from the excellent performance of Sodexo's Latin American teams, with
issue volume rising to 13.7 billion euro, up nearly 9% (excluding
currency translation effects) over the prior year.
Sodexo's key performance indicators were as follows:
the 94% level of client retention was comparable to the previous year;
the 4.3% growth on existing sites compares to 2% for the prior year.
The acceleration results partially from the impact of rising food
inflation;
the rate of development, or new contract wins, was 7.4%;
the employee retention rate reached 61.9% with a level of 83.6% for
site managers (compared with 82.9% in the previous year);
the number of training hours provided was 4.8 million hours for all
employees worldwide, an increase of more than 150,000 hours over the
previous year;
85% of employees consider Sodexo to be a better employer than its
competitors according to the most recent employee engagement survey,
conducted in Fiscal 2010.
Operating profit increases 10.6%
Operating profit was 853 million euro, an increase of 10.6%. Excluding
currency effects, revenues rose 10.4%, representing an improved
operating margin of 0.20% over the previous year.
For On-site Service Solutions:
Operating profit increased
8.6% (excluding currency effects), mainly a result of:
improved profitability in North America, rising from 4.8% to 5.1%;
growth in volumes in the Rest of the World.
Motivation Solutions:
Operating profit rose by 20% at
constant exchange rates, thanks to higher volumes and productivity
gains. The operating margin for this activity increased from 32.4% in
Fiscal 2010 to 36.5% in Fiscal 2011, thereby reaching in advance the
medium-term objective set by the Group.
Increase in net income and earnings per share
Group net income was 451 million euro compared with 409 million euro for
the previous year, an increase of 10.3% (+9.3% at constant exchange
rates). Growth was slightly lower than the increase in operating profit,
a result primarily of a higher effective tax rate, which rose from 33%
to 35.4%.
Earnings per share was 2.95 euro, an increase of 11.7%. The increase is
higher than the rise in net income because of an increase in the number
of treasury shares. These shares are excluded from the calculation of
earnings per share.
Dividend
Given this good performance, the strong cash generation during the year
and its full confidence in the future, the Sodexo Board of Directors
will propose a dividend of 1.46 euro per share at the January 23, 2012
General Shareholders' Meeting, an increase of 8.1% over the dividend
paid in Fiscal 2010. This distribution represents a payout ratio of
around 50% of Group net income and a yield of 2.8% based on the share
price of 51.82 euro (as of August 31, 2011).
Board of Directors
The Board also approved the resolutions to be proposed to the General
Shareholders' Meeting, including the renewal for a period of three years
of the mandates of Sophie Clamens, Nathalie Szabo and Bernard Bellon and
the appointment as a director of Francoise Brougher. A citizen of France
and the U.S., Ms. Brougher joined Google in California in 2005 and is
currently responsible for global advertising sales and operations for
the small and medium companies sector. As a member of the Board, she
will contribute her knowledge of new information and communication
technologies.
A financial model that generates cash
Net cash provided by operating activities was 847 million euro compared
to 1,006 million euro generated in Fiscal 2010 which had benefited from
exceptional cash flows in Motivation Solutions, principally following
the start-up of the Ecopass service offering in Belgium.
As of August 31, 2011, net debt was 376 million euro compared with 656
million euro as of August 31, 2010, representing 15% of shareholders'
equity compared with 24% as of August 31, 2010. Gross debt repayment
capacity as of August 31, 2011 represented around 3.2 years of operating
cash flow.
During the year, Sodexo completed two refinancings:
a private placement with U.S. investors (United States Private
Placement) for 600 million USD at a fixed rate;
a multi-currency line of credit for an amount equivalent to 1.1
billion euro.
These agreements have enabled Sodexo to secure the refinancing of debt
maturing in 2012 and to extend the maturity of its borrowings.
Post-closing events
Sodexo announced September 6, 2011 the acquisition of 100% of Puras do
Brasil, for an enterprise value of approximately 525 million euro.
Created 30 years ago, Puras do Brasil is the No. 2 on-site service
solutions provider in Brazil and generates revenues of around 0.5
billion euro. With this acquisition, Sodexo becomes the leader in
on-site service solutions in Brazil, a rapidly growing market.
On September 22, 2011, Sodexo also completed the acquisition of Lentre
in France. The acquisition will enable Sodexo to develop its Prestige
business portfolio in France and abroad, as well as to further enhance
its expertise in luxury gastronomy.
On November 8, 2011, Sodexo concluded an agreement in the U.S. to
acquire 100% of Roth Bros, a company specializing in technical
maintenance services. Roth Bros, founded in 1923, has a nationwide
network coverage and designs, manages and delivers services for HVAC,
facilities automation, monitoring and maintenance and energy management
services. Roth Bros generates revenues of around 100 million USD.
Following these three acquisitions and on a pro forma basis, the Group's
financial ratios remain solid: the ratio of net debt to equity is around
40%.
Lastly, on September 15, 2011, Sodexo, Inc. and the Service Employees
International Union (SEIU) announced a settlement agreement under which
SEIU agreed to end a public campaign against Sodexo that had been
ongoing for nearly two years. Sodexo agreed to dismiss its civil suit
filed in March 2011 in the U.S. District Court of the Eastern District
of Virginia.
Fiscal 2012 objectives
At the November 7, 2011 meeting of the Board of Directors, Sodexo CEO
Michel Landel presented the Fiscal 2012 and medium-term outlook.
He emphasized the need for prudence in the increasingly uncertain
macro-economic climate, notably in western countries. The accumulated
debt of governments and rising unemployment exert significant pressure
on economic activity in both the public and private sectors.
In this context, Group management and all of the Sodexo teams are fully
mobilized to:
decrease operating costs and thus improve productivity at all levels,
notably through sharing resources and centralizing processes, and
limit the effects of food price inflation.
Michel Landel also reminded the Board of Directors that in Fiscal 2012
Sodexo will be providing services in connection with important sporting
events (notably the Rugby World Cup, which took place in October 2011
and the London Olympic Games, which will take place in July 2012).
The current fiscal year will also require significant investment to
facilitate the integration of Puras in Brazil, as well as Lentre in
France and Roth Bros in the United States. These investments will weigh
slightly on the Group's short term operating profitability.
In light of the above, for Fiscal 2012:
Sodexo has set an objective for Fiscal 2012 of growth in organic
revenues of between 5% and 8%,
In addition, the Group expects a contribution to consolidated revenues
of approximately 4 percentage points from recent acquisitions (Puras
do Brasil, Lentre and Roth Bros),
The Group has also set an objective of an increase in operating
profit of around 10% (excluding exchange rate effects and the
one-time effects of an adjustment to post-employment benefit plan
costs in the United Kingdom(1)).
In the medium term:
Sodexo confirms its objective of an annual average consolidated
revenue growth of 7%, and
encouraged by recent progress, the Group is targeting achieving an operating
margin of 6.3% in four years time.
Lastly, Michel Landel, CEO, concluded by noting Sodexo's considerable
strengths:
its independence;
a global footprint encompassing 80 countries and notably uncontested
leadership in all of the BRIC countries (Brazil, Russia, India and
China) which represent markets with high economic growth;
a well-diversified portfolio of clients (Corporate, Sports and
Leisure, Health Care, Seniors, Education, Defense and Justice);
an ever broader integrated offer for quality of life services, which
allows it to help its clients improve their performance;
a strong culture and values shared by all of the teams;
a rich and diverse pool of talent, and
an excellent financial model.
These strengths enable Sodexo to look forward with confidence and to
maintain its investments, particularly in human resources development
and strengthening its expertise.
(1) In conformity with new regulations in effect in the
United Kingdom, the Group decided at the end of October to
calculate future
price indexation using the consumer price
index (CPI), thus replacing the retail price index, in determining
retirement benefits that
Sodexo UK will be required to pay to
certain members of its retirement plan. The retrospective effect
of this change will result in a
favorable adjustment to
operating profit in the first half of Fiscal 2012.
Analysts briefing
SODEXO will hold a briefing today at 9:00 a.m. at the Capital 8
Conference Center (32, rue Monceau, Paris 8me) to comment on
the Fiscal 2011 results. The briefing also can be followed via webcast
on www.sodexo.com
Future financial communications
First quarter Fiscal 2012 revenues: January 11, 2012
General Shareholders' Meeting: January 23, 2012
First half Fiscal 2012 results: April 19, 2012.
About Sodexo
Sodexo, world leader in Quality of Daily Life Solutions
Quality of Life plays an important role in the progress of individuals
and the performance of organizations. Based on this conviction, Sodexo
acts as the strategic partner for companies and institutions that place
a premium on performance and employee well-being, as it has since Pierre
Bellon founded the company in 1966. Sharing the same passion for
service, Sodexo's 391,000 employees in 80 countries design, manage and
deliver an unrivaled array of On-site Service Solutions and Motivation
Solutions. Sodexo has created a new form of service business that
contributes to the fulfillment of its employees and the economic, social
and environmental development of the communities, regions and countries
in which it operates.
Key figures (as of August 31, 2011)
16 billion euro consolidated revenue
391,000 employees
33,400 sites
80 countries
50 million consumers served daily
21st largest employer worldwide
8.4 billion euro market capitalization (as of November 8,
2011)
This press release contains statements that may be considered as
forward-looking statements and as such may not relate strictly to
historical or current facts. These statements represent management's
views as of the date they are made and Sodexo assumes no obligation to
update them.
Appendix 1
Analysis of activities and geographic zones
1. On-site Service Solutions
North America
Revenues in North America were 6billion euro, an increase of 2.6%,
which includes organic growth of 4.3% net of an unfavorable currency
effect of 1.6%.
At 1.8%, organic growth in the Corporate segment has improved
compared to the previous two years, despite the lack of a turnaround in
employment at large corporations and unchanged participation in
foodservices programs on sites. The startup of comprehensive service
solutions contracts for clients such as GlaxoSmithKline, Henkel, Colgate
and British Aerospace made a major contribution to the return to growth
during the year.
Significant recent contracts won include new comprehensive service
contracts for clients such as Bristol Myers Squibb (6 sites across
several U.S. States), ADP (California and Utah), General Electric
Aviation (Ohio), Discover Financial Services, and Guardian Life
Insurance Company of America.
In addition, Sodexo renewed its partnership with the U.S. Marine Corps,
with two contracts covering 51 military bases in the United States. More
than a third of these contracts with the Marines will be executed in
partnership with companies selected for their commitment to social
progress and diversity.
In Health Care and Seniors, organic growth of 5.9% accelerated
compared to the prior year (+2.9%). This reflects the excellent client
retention rate achieved in Fiscal 2010 and Fiscal 2011, and successful
broadening of the service offering to a number of hospital and
retirement home chains. Comfort Keepers, a provider of non-medical
in-home services for seniors, also achieved strong revenue growth and
opened new franchises.
New contract wins confirmed the relevance of Sodexo's comprehensive
service offerings in this segment, and include Saint Vincent Medical
Center (Los Angeles, California), Jackson Memorial Hospital (Miami,
Florida), Crouse Hospital (Syracuse, New York), Rideout Memorial
Hospital (Marysville, California), Crozer Chester Medical Center
(Pennsylvania), and Bethesda Memorial Hospital (Florida).
Organic growth in Education was 4%, the result of increased
student enrolment at university campuses and schools and the positive
impact of new contracts, in particular the one for the 136 schools in
the Detroit Public School District in Michigan. For this contract, one
of the Group's largest in the Education segment in the United States,
Sodexo has been selected to provide technical maintenance, building
repair, ground maintenance and cleaning services.
Sodexo won numerous contracts during Fiscal 2011, notably including
Garvey School District (Rosemead, California), Delgado Community College
(New Orleans, Louisiana), University of Missouri (Saint Louis,
Missouri), and Utica College (Utica, NY).
Operating profit was 304million euro, up 10.3% compared to the prior
year, excluding currency effects. This increase primarily reflects the
following factors:
good control of the cost of accident, health and benefit plans, and
on-site productivity gains.
In addition, a non recurring charge of 15million euro had been
recognized in the prior fiscal year.
The operating margin rose by 0.3% to 5.1%, compared to 4.8% for Fiscal
2010.
Continental Europe
Revenues in Continental Europe increased by 3.5% to 5.5billion euro as
follows:
organic growth: 2.9%;
currency effects: 0.7%.
Despite the continuing uncertain economic environment, Corporate
returned to organic revenue growth at 4.4%. This performance reflects
the relevance of the Group's strategic positioning and the new
comprehensive solutions contracts started in 2010, including for the
Department of Justice in France (for 27 corrections facilities). It also
reflects the impact of strong new business trends in Germany, Spain and
Russia.
Numerous contracts were won during the year including in particular the
important Public-Private Partnership to build, equip, operate and
maintain the future French Department of Defense headquarters in Paris,
the "Balard" project, scheduled to be operational in December 2014.
Other recent contracts also include the RIE Tour 9 and the Department of
Defense for 5 sites (at Houilles, Valence, Lyon Carnot, Lyon Bellecour
and Grenoble) in France, Sirius Business Park Siemens and the M. Pire
building complex in Germany, Barcelona's Catalan Institute of Finance
and the Museo del Prado in Madrid in Spain, Kraft Foods in Belgium, and
Aga AB, Liding in Sweden.
Organic revenue growth in Health Care and Seniors was 0.8%,
reflecting moderate sales growth as a result of the momentary slowdown
in outsourcing in many countries during the year.
Business wins during the year include Maasstad Ziekenhuis and Jeroen
Bosch Ziekenhuis, in the Netherlands, the Clinique Belledone at
Saint-Martin d'Hyres and the Association pour Adultes et Jeunes
Handicaps (APAJH) in the Val d'Oise (6 sites) in France, the Pisa
Hospital (AOUP) and Ospedale San Giuseppe Grupo Multimedica in Italy,
and the Tilkka Hospital in Finland.
Organic growth in Education was 1.2%. Business wins in Sweden,
with schools for the cities of Helsingborg and Katrineholm, and in
Italy, with the University of Pavia, offset moderate sales development
in France at the beginning of the year. At year-end, however, Sodexo
renewed and broadened its services to the 314 schools of the City of
Marseille, and was also awarded a contract to supply the Oulu Region
Joint Authority for Education (OSEKK) in Finland.
Operating profit increased by 14 million euro, up 5.6%, to 247
million euro, excluding currency effects. Good control on administrative
costs was a major contributing factor to this growth.
The operating margin improved by 0.1%, from 4.4% in Fiscal2010 to 4.5%
in Fiscal 2011.
United Kingdom and Ireland
Revenues in the United Kingdom and Ireland were 1.2billion euro, down
1.1% at constant exchange rates.
Despite the steady decline in demand for foodservices, Sodexo returned
to growth in Corporate, with an increase of 0.3%, thanks to its
well-adapted offering of integrated services for clients such as Glaxo
Smith Kline, Johnson & Johnson and Pilkington.
In addition, Sodexo signed a 5-year renewal of the hospitality contract
for Royal Ascot and commenced the preparation of contracts for the Rugby
World Cup in October 2011 and for the 2012 Olympic Games in London.
Revenues in Health Care and Seniors were down 7.9% for the year
(excluding exchange rate effects and changes in the scope of
consolidation), resulting from:
The decision made in the prior year not to renew the contract for part
of the services outsourced to Sodexo by Kings Hospital; and
weak sales growth, as public-sector clients in particular delayed
decision-making at the beginning of the year.
The 2.9% organic revenue growth in Education reflects successful
development with universities, for example in the management of
accommodation services on the Solent, Medway, Lincoln and Southampton
campuses. This trend compares very favorably with the 6.5% decline
experienced in Fiscal 2010.
Recently signed new contracts notably include Birmingham City University
and New College Swindon.
Operating profit was 59million euro, up 1.8% excluding currency
effects. This increase reflects significant on-site productivity gains,
especially in the Health Care and Justice services segments. At the same
time, costs were incurred during the year in preparing for the major
Fiscal 2012 sporting events contracts, namely the Rugby World Cup and
the London Olympics.
The operating margin increased by 0.1% from 4.6% in Fiscal 2010 to 4.7%
in Fiscal 2011.
Rest of the World
Revenues in the Rest of the World (Latin America, Middle East, Asia and
Australia and Remote Sites) were 2.6 billion euro.
The pace of growth continued to accelerate throughout the year, and
organic growth reached 15.9%.
Revenues in Corporate grew by 16.3%, compared to 7.7% in Fiscal
2010. This acceleration occurred in all geographic regions:
In Latin America, business wins were numerous, including with Natura,
Petrobras Fafen and Vale Norte in Brazil, with mining and oil and gas
clients such as Compaa Minera Zaldivar S.A, Excon and SQM in Chile,
Xstrata Fuerabamba, Vale FM, Plus Petrol Norte and Southern Peru
Copper Corp./Cuajone-Toquepala in Peru. Growth in on-site activities
was also driven by the high level of industrial activity and a high
rate of food inflation.
In China and India, where Sodexo holds undisputed leadership
positions, the Group signed a large number of contracts, including
with Volkswagen India, Pune and Renault Nissan, in India, and with Bao
Steel (4 sites), Andrew Telecommunications, Toshiba Elevator,
Shanghai, Nokia Beijing and Dongguan, in China.
Sodexo also achieved multiple business wins in Remote Sites. In
Australia, for instance, Sodexo won contracts with Rio Tinto Pilbra
Iron, Western Turner, Karara Mining and the Freeport McMoran Copper
and Gold mine, and TFM in the Democratic Republic of Congo.
Growth in Health Care and Seniors and in Education in
the Rest of the World was 12.4% and 10.7%, respectively. Sodexo's
expertise in these segments is starting to pay off, with the signature
of new contracts such as those with the Medanta-The Medicity hospital
in India, Shenzhen TCM Hospital in China, Queen Sirikit Medical Center
in Thailand, and Emirates National School in the United Arab Emirates.
Operating profit in the Rest of the World increased 17.1% at
constant exchange rates to 84million euro. This increase reflects
growth in volumes and substantial productivity gains, which more than
offset significant inflationary pressures in a number of countries.
Moreover, the Group continued to invest in training and human resources
development in these countries, given their strong potential in the
medium term, as well as to reinforce its competencies in technical
maintenance services.
The operating margin of 3.2% was stable compared to that of the prior
fiscal year.
2. Motivation Solutions
Issue volume (face value multiplied by the number of vouchers and
cards issued) was 13.7 billion euro. Organic growth in issue volume was
8.8%, with an additional favorable 1.2% currency translation effect.This
issue volume comprised the following:
6.2 billion euro in Latin America, with 12.2% organic growth, and
7.5 billion euro in Europe and Asia, with 6.2% organic growth.
Strong growth in Latin America resulted from a combination of new
customer wins, business synergies resulting from the broadening of
existing client service offerings and the increased face value of
vouchers.
In Europe, this performance includes an increase of more than 10% in
vouchers issued for the Belgian Bureau of Labor (ONEM), and from faster
growth in France thanks to a successful sales drive.
Revenues totaled 717million euro, with 6.9% organic growth.
In Latin America, which accounts for 53% of revenues, organic growth was
particularly solid at 13.6%. This included an increase in the number of
beneficiaries and of the face value of vouchers, business wins such as
Fundacao, Petrobras, Universidade Estado do Amazonas in Brazil, Servicio
Nacional Integrado De Administraction Aduarena y Tributaria in
Venezuela, and BBVA Comercializadora in Chile, and the positive impact
of interest rate rises, especially in Brazil.In Europe and Asia, organic
growth of 0.4% resulted from:
good sales momentum in France, thanks in particular to the success of
the CESU (service voucher) offerings;
a slight decrease in revenues in Central Europe, albeit at a lesser
rate than the prior year;
some persistent pressures on client commissions as a result of strong
competition in some countries and on incentive programs.
Recent business wins include in particular the global Amadeus
(Incentive) contract, a major contract for Life Insurance Corp (a
leading public life insurance company in India), Hewlett-Packard and Gas
Authority of India (India), Coca Cola and KGHM Polska in Poland, Audi
Motor in Hungary, and Santander Consumer Bank in Germany.
The difference between growth in issue volume and that of revenues,
chiefly in Europe, resulted from the strong growth in issue volume on
the popular ONEM contract in Belgium. This growth does not translate
into revenue growth in the same proportion because of the size and
structure of the contract.
Operating profit totaled 262million euro, a 21.9% increase compared to
that of Fiscal 2010. Excluding exchange rate effects, operating profit
rose 20%, reflecting the operating leverage arising from increased
volumes and a more efficient production process. These productivity
gains principally reflected synergies achieved in Brazil over the past
three years following the integration of VR, but also resulted from the
success of action plans in Europe.
The activity's operating margin was 36.5%, versus 32.4% in the prior
year, enabling Sodexo to achieve its medium-term objective in this
activity already as of Fiscal 2011.
3. Corporate expenses
Corporate expenses were 86million euro, an increase of 19 million euro
over the prior year. This increase stems mainly from acquisition costs
and from the 10 million euro provision covering two years of the Profit
Sharing Bonus, pursuant to a law introduced in France on July 28, 2011
for companies increasing dividend distributions in France.
Appendix 2
Full Year financial statements
Statement of income
(in euro million)
Fiscal 2011
Variation
Fiscal 2010
EURM
% Revenues
EURM
% Revenues
Revenue
16,047
100
%
5.4
%
15,230
100
%
Cost of sales
(13,529
)
- 84.3
%
(12,846
)
- 84.3
%
Gross profit
2,518
15.7
%
5.6
%
2,384
15.7
%
Sales department costs
(242
)
- 1.5
%
(226
)
- 1.5
%
General and administrative costs
(1,408
)
- 8.8
%
(1,358
)
- 8.9
%
Other operating income
10
12
Other operating expenses
(25
)
- 0.2
%
(41
)
- 0.3
%
Operating profit before financing costs
853
5.3
%
10.6
%
771
5.1
%
Financial income
57
0.4
%
62
0.4
%
Financial expenses
(204
)
- 1.3
%
(212
)
- 1.4
%
Share of profit of associates
15
0.1
%
14
0.1
%
Profit before tax
721
4.5
%
13.5
%
635
4.2
%
Income tax expense
(250
)
- 1.6
%
(205
)
- 1.3
%
Net result from discontinued operations
Profit for the period
471
2.9
%
9.5
%
430
2.8
%
Minority interests
20
0.1
%
21
0.1
%
Group profit for the period
451
2.8
%
10.3
%
409
2.7
%
Earnings per share (EUR)
2.95
2.64
Consolidated balance sheet
ASSETS
EQUITY AND LIABILITIES
(in euro million)
August
31, 2011
August
31, 2010
(in euro million)
August
31, 2011
August
31, 2010
Shareholders' equity
Common stock
628
628
Additional paid-in capital
1,109
1,109
Retained earnings
1,026
783
Consolidated reserves
(228
)
187
Total Group shareholders'
equity
2,535
2,707
Non-current assets
Non controlling interests
30
32
Property, plant and equipment
513
531
Total shareholders' equity
2,565
2,739
Goodwill
4,283
4,634
Other intangible assets
492
527
Non-current liabilities
Client investments
222
228
Borrowings
2,262
2,534
Financial derivatives
1
0
Associates
70
71
Employee benefits
281
348
Financial assets
115
142
Other liabilities
190
243
Other non-current assets
14
14
Provisions
62
64
Deferred tax assets
153
162
Deferred tax liabilities
150
122
Total non-current assets
5,862
6,309
Total non-current liabilities
2,946
3,311
Current assets
Current liabilities
Financial assets
9
6
Bank overdraft
23
59
Derivative financial instruments
2
6
Borrowings
152
150
Inventories
252
235
Derivative financial instruments
10
25
Income tax receivable
72
81
Income tax payable
120
138
Trade receivable
3,142
3,033
Provisions
47
61
Restricted cash and financial
assets related to the Motivation
Solutions activity
622
578
Trade and other payables
3,125
2,985
Cash and cash equivalents
1,448
1,527
Vouchers payable
2,421
2,307
Total current assets
5,547
5,466
Total current liabilities
5,898
5,725
Total assets
11,409
11,775
Total liabilities
and equity
11,409
11,775
Consolidated statement of cash flow
(in euro million)
Fiscal 2011
Fiscal 2010
Operating activities
Operating profit before financing costs
853
771
Non cash items
244
240
(9
)
19
Losses (gains) on disposals and other, net of tax
15
9
Dividends received from associates
13
9
Change in working capital from operating activities
100
257
(32
)
(12
)
change in client and other accounts receivable
(235
)
(177
)
change in suppliers and other liabilities
261
201
change in Service Vouchers and Cards to be reimbursed
170
233
change in financial assets related to the Service Vouchers and
Cards activity
(64
)
12
Interest paid
(144
)
(141
)
Interest received
14
28
Income tax paid
(239
)
(186
)
Net cash provided by operating activities
847
1,006
Investing activities
Tangible and intangible fixed assets investments
(242
)
(236
)
22
26
Change in Client investments
(22
)
(19
)
Change in financial investments
12
(23
)
Acquisitions of consolidated subsidiaries
(2
)
(23
)
Disposals of consolidated subsidiaries
0
3
Net cash used in investing activities
(232
)
(272
)
Financing activities
Dividends paid to parent company shareholders
(208
)
(197
)
Dividends paid to minority shareholders of consolidated companies
(21
)
(18
)
Change in treasury shares
(161
)
(90
)
2
0
Acquisition of non-controlling interests
(3
)
(2
)
429
321
(610
)
(393
)
Net cash provided by (used in) financing activities
(572
)
(379
)
INCREASE IN NET CASH AND CASH EQUIVALENTS
42
355
Net effect of exchange rates on cash
(86
)
(49
)
Cash and cash equivalents, as of beginning of period
1,468
1,162
CASH AND CASH EQUIVALENTS, AS OF END OF PERIOD
1,424
1,468
Segment information: revenue
Revenue
(in euro million)
Fiscal
2011
Fiscal
2010
Organic
growth (1)
Exchange
rate
variation(2)
External
Growth
Variation
at current
rate
On-site Service Solutions
6,005
5,850
+ 4.3
%
- 1.6
%
-
+ 2.6
%
5,473
5,289
+ 2.9
%
+ 0.7
%
- 0.1
%
+ 3.5
%
1,245
1,252
- 1.1
%
+ 0.5
%
-
- 0.6
%
2,624
2,194
+ 15.9
%
+ 4.4
%
- 0.7
%
+ 19.6
%
Total
15,347
14,585
+ 5.1
%
+ 0.3
%
- 0.2
%
+ 5.2
%
Motivation Solutions
717
663
+ 6.9
%
+ 1.3
%
-
+ 8.2
%
Elimination
- 17
- 18
Total
16,047
15,230
+ 5.2
%
+ 0.4
%
- 0.2
%
+ 5.4
%
1 Organic growth: revenue growth, at constant scope of
consolidation and excluding exchange rate effects.
2 It should be noted that, unlike exporting companies,
the revenues and expenses of Sodexo subsidiaries are denominated
in the
same currency. Consequently, foreign exchange
variations do not have an operational risk. The average exchange
rate for the
USD/euro for Fiscal 2011 was 1.3896.
Segment information: operating profit
Operating profit
(in euro million)
Fiscal 2011
Fiscal 2010
Change
Before corporate expenses
On-site Service Solutions
-- North America
304
281
+ 8.2
%
247
233
+ 6.0
%
59
57
+ 3.5
%
84
70
+ 20
%
Motivation Solutions
262
215
+ 21.9
%
Headquarters
- 86(1
)
- 67
-
Elimination
- 17
- 18
-
TOTAL
853
771
+ 10.6
%
(1) Including a EUR10 million provision related to the Prime de
Partage des Profits (Profit-sharing Bonus), pursuant to the
French law of
July 28, 2011
Revenue
On-site Service Solutions by segment
Consolidated Group
(in euro million)
Fiscal 2011
Fiscal 2010
Organic
growth
Corporate
7,737
7,174
+ 6.7
%
Health Care and Seniors
4,129
4,014
+ 3.5
%
Education
3,481
3,397
+ 3.4
%
TOTAL
15,347
14,585
+ 5.1
%
North America
(in euro million)
Fiscal 2011
Fiscal 2010
Organic
growth
Corporate
1,290
1,282
+ 1.8
%
Health Care and Seniors
2,378
2,281
+ 5.9
%
Education
2,337
2,287
+ 4.0
%
TOTAL
6,005
5,850
+ 4.3
%
Continental Europe
(in euro million)
Fiscal 2011
Fiscal 2010
Organic
growth
Corporate
3,183
3,028
+ 4.4
%
Health Care and Seniors
1,382
1,367
+ 0.8
%
Education
908
894
+ 1.2
%
TOTAL
5,473
5,289
+ 2.9
%
United Kingdom and Ireland
(in euro million)
Fiscal 2011
Fiscal 2010
Organic
growth
Corporate
895
887
+ 0.3
%
Health Care and Seniors
228
246
- 7.9
%
Education
122
119
+ 2.9
%
TOTAL
1,245
1,252
- 1.1
%
Rest of the World
(in euro million)
Fiscal 2011
Fiscal 2010
Organic
growth
Corporate
2,369
1,977
+ 16.3
%
Health Care and Seniors
141
120
+ 12.4
%
Education
113
97
+ 10.7
%
TOTAL
2,623
2,194
+ 15.9
%
Appendix 3
Selection of new clients
Corporate
ADIDAS AG LACES, Herzogenaurach, Germany (1,600 people)
ADP,
France (110 buildings at Roissy and Orly airports)
Aga AB,
Liding, Sweden (750 people)
Alcatel-Lucent India Limited, 9
sites (across Mumbai, Bangalore, Chennai, Gurgoan and Noida), India
(5,600 people)
ALSTOM GRID (headquarters), Puteaux, France
(1,400 people)
Andrew Telecommunications, (China) Co., Ltd.,
Suzhou, China (2,300 people)
Atlas Copco Rock Drills AB,
Orebro, Sweden (1,700 people)
ATOS (42 sites in France)
Automatic
Data Processing Inc., 4 sites (La Palma, San Dimas, Buena Park,
California, and Salt Lake City, Utah), USA (2,870 people)
Bombardier
Transportation Sweden AB, Vasteras, Sweden (1,200 people)
Bristol-Myers
Squibb, six new sites (New York and Syracuse, New York, Devens,
Massachusetts, Mt. Vernon, Indiana, Humacao and Manati, Puerto Rico,
United States (2,047 people)
Bundesbeschaffung GmbH (BBG),
Tirol & Vorarlberg, Austria (120 people)
CB21 GdF Suez,
La Defense, France (1,000 meals per day)
CEA Nano innov, Gif
sur Yvette, Ile de France (600 residents, 18,000 m)
Discover
Financial Services, multiple sites (Arizona, Ohio, Illinois and
Delaware), USA (10,047people)
Edison International,
Rosemead, California, USA (4,500 people)
ETH Alto Taquari, 2
sites (Costa Rica and Alto Taquari), Brazil (3,685 people)
Eurosic
- 52 Hoche, Paris, France (300 people)
ExxonMobil Qatar Inc.,
Doha, Qatar (255 people)
GAN Elyses (head office),
Paris La Defense, France (570 people)
GE Aviation, Evendale,
Ohio, USA (7,200 people)
GE China, Shanghai, China (2,700
people)
GEOBAN - SANTANDER TRIPARK, Madrid, Spain (1,400
people)
The Guardian Life Insurance Company of America,
several sites (New York, New York, Bethlehem, Pennsylvania, Pittsfield,
Massachusetts, Appleton, Wisconsin, and Spokane, Washington) USA
(4,825people)
Immeuble Carr Playel, Saint-Denis,
France (1,300 people)
Immeuble Citalium, Montevrain, France
(550 people)
Immeuble Le Mermoz, Le Bourget, France (700
meals per day)
Institut Catalan de Finances, Barcelona, Spain
Invensys,
California and Illinois, USA (825 people)
JANSSEN CILAG Gmbh,
Neuss, Germany (900 people)
Knesset, Israel
Kraft
Foods LU, Herentals, Belgium
Lexis Nexis Specialized
Services, Inc., Alpharetta, Georgia, USA (1,650 people)
Maersk
Container Industry Dongguan Ltd., Dongguan, China (2,800 people)
Medtronic
Puerto Rico, Inc., 3 sites, Puerto Rico, United States (3,106 people)
MONDI
SCP, Ruzomberok, Slovakia (1,400 people)
M. PIRE, Munich,
Germany (2,000 people)
Nokia manufacturing sites, Beijing &
Dongguan, China
Pershing & Co., two sites, New Jersey
(3,000 people)
Plaza Indonesia Mall, Indonesia
Port
San Antonio &Lackland AFB, San Antonio, Texas (3,000 people)
Renault
Nissan, Oragadam, India (5,000 people)
Renault Nissan
Automotive Pvt Ltd, Tamilnadu, India (5,300 people)
Restaurant
inter-entreprises Princesse, Louveciennes, France (550 people)
RIE
TOUR 9, Montreuil-Sous-Bois, France (1,300 people)
RIE
HORIZONS, Boulogne Billancourt, France (1,100 people)
RIE
Quadrants, Guyancourt, France (600 people)
San Jose Job Corp,
San Jose California, USA (575 people)
Seven Seas Limited,
Hull, United Kingdom (290 people)
Shimano Bicycle Parts Co.,
Ltd., Tianjin (1,100 people) and Kunshan (2,500 people) China
Siderar,
San Nicolas, Argentina (600 people)
Sirius Business Park -
Siemens Munchen, Munich, Germany (1,000 people)
SSAB,
Nykoping, Sweden (700 people)
SWISS LIFE, Zurich,
Switzerland (1,500 people)
Toshiba Elevator (China) Ltd.,
Shanghai, China (800 people)
UpplandsVsbykommun (Multihuset),
Stockholm, Sweden
Uppsala akademifrvaltning KB, Uppsala,
Sweden (175,000 m2)
Valimotie 21, Helsinki, Finland (600
people)
Volkswagen India Pvt. Ltd., Pune, India (4,200
people)
Wuhan City Planning & Design Institution, Wuhan,
China (260 people)
Health Care and Seniors
AOUP Pisa, Pisa, Italy (1,215 beds)
Association APAJH 95, six
sites in Val d'Oise, France (350 beds)
Augusta Health,
Fishersville, Virginia, United States (255 beds)
Bayou Manor,
Houston, Texas, United States (227 beds)
Bethesda Memorial
Hospital, Boynton Beach, Florida, United States (362 beds)
CAS
de Paris, Paris, France (28,000 meals per month)
C.C.A.S.
d'Angers, Angers, France (1,300 people)
CaprottiZavaritt,
Bergamo, Italy (70 beds)
Centre de l'Arche, Saint Saturnin,
France (116 beds)
ClnicaBicentenario - Estacion Central,
Santiago, Chile (800 beds)
Clinique Belledone, Saint-Martin
d'Hyres, France (275 beds)
Crouse Hospital, Syracuse, New
York, USA (180 beds)
Crozer Chester Medical Center, Upland,
Pennsylvania, United States (653 beds)
Fondation Ophtalmologique
de Rothschild, Paris, France (112 beds)
Fuxing Hospital, Beijing,
China (900 people)
Group ADEF, France (33 sites - 5,000
people)
Henry Mayo Newhall Memorial Hospital, Valencia,
California, United States (167 beds)
HOSPITAL PORTUGUES,
Salvador, Brazil (350 beds)
Jackson Memorial Hospital,
Miami, Florida, USA (1,857 beds)
Jeroen Bosch Ziekenhuis,
Hertogenbosch, Netherlands (1,250 people)
John H. Stroger of
Cook County, Chicago, Illinois USA (464 beds)
Las Palmas
Medical Center, El Paso, Texas USA (221 beds)
Ligue havraise
d'aide aux handicaps, 14 sites, Seine Maritime, France
Lundskommun,
Lund, Sweden
Maastadziekenhuis, Rotterdam, Netherlands
(3,600 people)
MAX Healthcare, Bhatinda, India (200 beds)
Medanta
- The Medicity, Gurgaon (Haryana), India (600 beds)
Mercy
Hospital of Philadelphia, Philadelphia, Pennsylvania, USA (150 beds)
National
University Hospital, Singapore (1,000 beds)
Policl.
Guipuzcoa, San Sebastian, Spain (83 beds)
Prsence Verte
Services, Region of Poitiers, France (800 people)
Rideout
Memorial Hospital, Marysville, California, United States (80 beds)
Sacred
Heart Hospital, Eau Claire, Wisconsin, USA (194 beds)
St.
Vincent Medical Center, Los Angeles, California, United States (341
beds)
San Giuseppe Gruppo Multimedica Hospital, Milan, Italy
(300 beds)
ShenZhen Traditional Chinese Medicine Hospital,
Shenzhen, China (1,400 people)
St. Bernard Hospital,
Chicago, Illinois, USA (198 beds)
St. Johnland Nursing Center,
Kings Park, New York, USA (250 beds)
St. Mary's Hospital,
Decatur, Illinois USA (226 beds)
Trinity Mother Frances Hospital,
Tyler, Texas, USA (330 beds)
Tilkka Hospital - Etera - Esperi,
Helsinki, Finland (400 beds)
University Hospital of Skane, Lund,
Sweden (980 beds)
University Medical Center, Las Vegas,
Nevada, USA (564 beds)
Waterbury Hospital, Waterbury,
Connecticut USA (300 beds)
Education
Belvidere Community United School District 100 - K-12 Nutrition,
Belvidere, Illinois, USA, (8,800 people)
Birmingham City
University, Birmingham, United Kingdom (25,000 people)
Cardinal
Stritch University, Wisconsin, USA (6,276 people)
China
Europe International Business School, Shanghai, China (400 people)
City
and Islington College, London, United Kingdom (10,000 people)
College
of DuPage, Illinois, USA (27,083 people)
Comune di Muggi,
Milan, Italy (1,800 students)
Dalian Maple Leaf Educational
Systems, Dalian, China (316 people)
Darton College,
Georgia, USA (5,854 people)
Delgado Community College, New
Orleans, Louisiana, USA (15,340 students)
Detroit Public Schools,
Detroit, Michigan, USA (101,000 students)
Emirates National
School, Abu Dhabi (2 campuses) and AL Ain (1 campus) (3,100 students)
Garvey
School District, Rosemead, California, USA (3,700 students)
Greensboro
College, Northern California, USA (1,264 people)
Groupement
des villes de Palaiseau et d'Igny, France (3,300 people)
Guam
Public Schools, Guam Territory (31,000 people)
Harris
Academy Falconwood, London, United Kingdom
Holyoke City
School District, Holyoke, Massachusetts, USA (5,915 students)
The
International School of Macao (TIS), Hong Kong, China (935 people)
Lewisville
Independent School District, Lewisville, Arkansas, USA (1,000 people)
Lockhart
Independent School District, Lockhart, Texas, USA (4,551 people)
Mt.
San Antonio College, Walnut, California, USA (31,602 people)
National
Heritage Academy, SE Grand Rapids, Michigan, USA (26,021 people)
New
Mexico State University Main Campus, Las Cruces, New Mexico, USA
(18,497 people)
Norrkpingskommun, Norrkping, Norrkping,
Sweden (153,000 m2)
NSW Police College, Goulburn, Australia
(3,000 people)
Oconee County School District - K-12 Nutrition,
Walhalla, South Carolina, USA (10,729 people)
Oregon Institute
of Technology, Klamath Falls, Oregon, USA (3,915 people)
OSEKK,
Oulu, Finland (3,500 people)
Rogers State University - Campus
Dining, Claremore, USA (4,154 people)
Saginaw Public Schools,
Saginaw, Michigan, USA (9,500 people)
Silsbee Independent School
District, Silsbee, Texas, USA (3,044 people)
Stichting
Fontys Hogescholen, Eindhoven, Netherlands (24,000 people)
Texas
A & M University, Corpus Christi, Texas, USA (9,468 people)
UNIVERSIDAD
REY JUAN CARLOS I, Madrid, Spain (700 people)
Universita di
Pavia, Pavia, Italy (8,312 students)
Universiteit van
Tilburg, Tilburg, Netherlands (14,000 students)
University
of Missouri - St. Louis, St. Louis, Missouri, USA (16,000 students)
Utica
College, Utica, NY, USA (2,465 students)
City of Marseilles,
Marseilles, France (2,065,760 meals / year)
City of Sarcelles,
Sarcelles, France (3,900 people)
Western Texas College,
Snyder, Texas (2,238 people)
World Learning SIT Graduate
Institute, Brattleboro, Vermont, USA (1,270 students)
Remote Sites
Agrosuper - Huasco, Copiapo, Chile (600 people)
Ausco
Modular Pty Limited, Stayover Village Dalby, Queensland Australia
(200 people)
AZUCA HOCHSCHILD, Arequipa, Peru (500 people)
BP,
Thunderhorse, Gulf of Mexico offshore (300 people)
Campamento
Sierra Gorda, Antofagasta, Chile (6,250 people)
CAMPOSOL,
Trujillo, Peru (3,500 people)
Compaa Minera Zaldivar SA /
Barrick, Antofagasta, Chile (800 people)
Crisil, Mumbai,
India (1,700 people)
Entrepose El Merk, Algeria (700 people)
ETH
- AGUA EMENDADA, Perolndia Brazil (1,818 people)
Evans
Landing, Australia (210)
EXCON (SQM), Antofagasta, Chile
(650 people)
The Floatel Jascon 31 (TOTAL), Angola (460
people)
FQM Australia Nickel Pty Limited, Ravensthorpe site,
Western Australia (780 people)
Freeport McMoran Copper & Gold, TFM
(TenkeFungurume Mining), Democratic Republic of Congo (4,200 people)
Global
Geophysical Services, Rhourde El Bagal, Algeria (300 people)
Halliburton,
Algeria - 3 sites (Algiers, Hassi Messaoud, Desert Remote Site) (550
people)
Hamersley Iron Pty Limited - Hope Downs 4 Rail
Project & Hope Downs 4 Mine, Western Australia (1,460 people)
Minera
El Morro - Proyecto Obras Tempranas, Vallenar, Chile (250 people)
Newmont
Mining Services Pty Ltd, Village Tanami, Western Australia (770
people)
Noble Drilling, Homer Ferrington (platform),
Netherlands (110 people)
Ocean Rig - Leiv Eriksson
semi-submersible drilling rig, Denmark (120 people)
OGEC,
Rhourde El Bagal, Algeria (700)
PIE, 2 sites, Algeria (400
people)
Pluspetrol Norte, Iquitos, Peru (2,300 people)
Polyus
Gold Natalkinskoe minefield, Magadan, Russia
Rio Tinto,
India (110 people)
Rio Tinto Pilbra Iron, Western Turner,
Australia (1,000 people)
Seadrill, West Gemini (offshore),
Angola (108 people)
SERPETBOL FLOWLINE, Cusco, Peru (720
people)
SEVAN MARINE, Rio de Janeiro, Brazil (115 people)
SOUTHERN
ILO-CUAJONE TOQUEPALA, Cuajone-Toquepala, Peru (1,500 people)
Sterlite
Industries Limited, Vile Parle (East), Mumbai, India
TASCO
Inland Pty Limited, Caltex Narranderapetrol station site, New South
Wales, Australia
TEKFEN, JorfLasfar, Turkey (650 people)
TEKFEN
PIPELINE, Khouribga, Morocco (2,200 people)
Total,
Camelot (barge hotel) Congo (650 people)
Total, FPSO unit
(offshore)PAZFLORand Flotel, Angola (400 people)
Transocean,
Sinop, Turkey (175 people)
Transocean / ONGC, Semi
Submersible Rig "M.G. Hulme Jr.," offshore India (140 people)
Vale
FM, Piura - Bayovar - Lima, Peru (1,000 people)
Xstrata
Fuerabamba, Cusco, Peru (1,100 people)
Defense
Headquarters of the French Ministry of Defence, Balard site,
Paris, France (9,600 people)
U.S. Marine Corps, United
States (51 mess halls)
French Ministry of Defence, 5 sites
(Houilles, Valence, Lyon Carnot, Lyon Bellecourt and Grenoble), France
(2,000 people)
Sports and Leisure
Baker Hughes, Aberdeen, Scotland (1,700 people)
Museo del
Prado, Madrid, Spain (1,200 people)
Sportscotland,
Largs, Ayrshire, Scotland (20,000 visitors a year)
Motivation Solutions
Europe
Airbus Espaa, Spain (Gift Pass, 700 beneficiaries)
ARIS
(Ali Raif Pharmaceutical), Turkey (Meal Pass, 450 beneficiaries)
Amboseli,
Czech Republic (Meal Pass, 200 beneficiaries)
APA Canal 2000,
Romania (Public water services) (Meal Pass, 640 beneficiaries)
Audi
Motor, Hungary (Meal Pass, 5,800 beneficiaries)
Auto
Cobalcescu, Romania (Meal Pass, 325 beneficiaries)
AZ
Turnout Sint Elizabeth Campus, Belgium (Meal Pass, 800 beneficiaries)
Government
Offices of Borsod Abaj Zempln, Hungary (Meal Pass, 2,500
beneficiaries)
Coca-Cola, Poland (Gift Pass, 3,200
beneficiaries)
Conseil Gnral del'Aveyron, France (Meal
Pass, 1,030 beneficiaries)
Crdit Agricole Charente Perigord,
France (Meal Pass, 500 beneficiaries)
Forestry Department of
Maramures, Romania (Meal Pass, 510 beneficiaries)
Dow
AgroScience, Czech Republic (Gift Pass)
Enea Operator,
Poland (Gift Pass, 2,000 beneficiaries)
EVN Bulgaria
Elektrorazpredelenie AD, Bulgaria (Food Pass, 3,300 beneficiaries)
FasteWeb,
Italy (Meal Pass, 3,000 beneficiaries)
Generali, (Meal Pass,
600 beneficiaries)
Hospital Kanizsa Dorothy, Hungary (Meal
Pass, 850 beneficiaries)
Psychiatric Hospital Beau Vallon,
Belgium (Meal Pass, 640 beneficiaries)
St. Georges Hospital,
Bulgaria (Food Pass, 2,700 beneficiaries)
Huawei Telecom, Turkey
(Gift Pass, 762 beneficiaries)
Karpacka, Poland (Gift Pass)
KGHM
Polska, Poland (Gift Pass, 4,650 beneficiaries)
City of
Biarritz, France (Meal Pass, 850 beneficiaries)
Meryll Lynch
International Bank, Germany (Meal Pass, 120 beneficiaries)
Konin
Mine, Poland (Gift Pass, 4,500 beneficiaries)
National
emergency center, Slovakia (Meal Pass, 430 beneficiaries)
ON
Semiconductor, Belgium (Meal Pass, 600 beneficiaries)
Reckitt
Benckiser, Romania (Incentive program)
Santander Consumer
Bank, Germany (Meal Pass, 770 beneficiaries)
SAS - Security
Alarm System, Bulgaria (Food Pass, 3,440 beneficiaries)
Sberbank,
Russia (Gift Pass, 5,000 beneficiaries)
Teleperformance,
Tunisia (Meal Pass, 3,250 beneficiaries)
Bulgarian National
Television, Bulgaria (Food Pass, 1,400 beneficiaries)
Chemical
Plant "Police", Poland (Gift Pass, 3,000 beneficiaries)
Latin America
Administradora De Fondo de PensionesProvida (BBVA Group), Chile
(Meal Pass, 950beneficiaries)
Anhanguera Educacional,
Brazil (Incentive, 800 beneficiaries)
BBVA Comercializadora, Chile
(Meal Pass, 450 beneficiaries)
CGMP - Centre for Management of
Payments, Brazil (Incentive, 2,800 Beneficiaries)
CNH Latin
America, Brazil (Incentive, 1,500 beneficiaries)
National
Books Commission, Mexico (Food Pass, 600 beneficiaries)
Brazilian
Cartridge Company, Brazil (Food Pass, 845 beneficiaries)
Consortium
building CCPR - Repar, Brazil (Meal Pass, 3,500 beneficiaries)
Cordialsa
Colombia, Colombia (Meal Pass, 250 beneficiaries)
Delta
Construcoes, Brazil (Food Pass, 1,800 beneficiaries)
Fuller
Beauty Cosmetics, Mexico (Food Pass, 1,500 beneficiaries)
Fundacao,
Brazil (Gift Pass, 2,350 beneficiaries)
Management of Criminal
Investigation and Interpol, Colombia (Mobility Pass, 210
beneficiaries)
GlaxoSmithKline, Chile (Meal Pass, 190
beneficiaries)
IBM, Uruguay (Food Pass, 137 beneficiaries)
National
industry of metallurgy, Venezuela (Food Pass, 470 beneficiaries)
National
Institute for Land Management, Venezuela (Food Pass, 3,080
beneficiaries)
Microsoft, Mexico (Food Pass, Restaurant
Pass, Mobility Pass, 4,523 beneficiaries)
Operadora Binmario,
Venezuela (Food Pass, 500 beneficiaries)
Petrobras, Brazil
(Food Pass, 4,000 beneficiaries)
Secretariat of Communications
and Transport, Mexico (Mobility Pass, 280 beneficiaries)
Operational
Services Benavides, Mexico (Food Pass, 4,423 beneficiaries)
Servicio
Nacional Integrado de Administracin Aduanera Y Tributaria (Seniat),
Venezuela (Food Pass, 11,150 beneficiaries)
University Estado do
Amazonas, Brazil (Food Pass, 500 beneficiaries)
Asia
Banque Danamon, Indonesia (Product Promotion, 36,000
beneficiaries)
Banque Ekonomi Raharja, Indonesia (Product
Promotion, 2,759 Beneficiaries)
Construction company of the
subway system in Shanghai, China (Gift Pass, 3,988 beneficiaries)
Gas
Authority of India, India (Meal Pass, 2,000 beneficiaries)
Hewlett
Packard, India (Meal Pass, 21,530 beneficiaries)
KPIT
Cummins Infosystems, India (Meal Pass, 1,500 beneficiaries)
Life
Insurance Corporation of India, India (Meal Pass, 70,000
beneficiaries)
Power Grid Corporation, India (Meal Pass,
4,076 beneficiaries)
VMware Software, India (Meal Pass, 800
beneficiaries)
Sodexo (PARIS:SW) (OTCBB:SDXAY): At the Board of Directors meeting held
November 7, 2011, chaired by Pierre Bellon, Sodexo CEO Michel Landel
presented the company's Fiscal 2011 performance.
Fiscal 2011 performance
millions of euro
Year ended August 31
Change
excluding
currency
impacts
Currency
impacts
Total change
2011
2010
Income statement highlights
Revenues
16,047
15,230
+ 5.0
%
+ 0.4
%
+ 5.4
%
Organic growth
5.2
%
2.5
%
Operating profit
853
771
+ 10.4
%
+0.2
%
+ 10.6
%
Operating margin
5.3
%
5.1
%
Group net income
451
409
+ 9.3
%
+1.0
%
+ 10.3
%
Earnings per share (in euro)
2.95
2.64
+ 10.6
%
+ 1.1
%
+ 11.7
%
Dividend per share (in euro)
1.46
1.35
+ 8.1
%
Financial structure highlights
Net cash provided by operating activities
847
1,006
As of August
31, 2011
As of August
31, 2010
Gearing
15
%
24
%
Commenting on the results, Sodexo CEO Michel Landel said:
"In a continued tense environment, Sodexo achieved good results for
the fiscal year ended August 31, 2011 as a result of the commitment of
all our teams throughout the world. I thank them for their efforts.
These results demonstrate the relevance of Sodexo's unique
positioning and development strategy. We have become an integrator of
quality of life services and hold leadership positions in high potential
economies such as the BRIC countries. We are continuing to invest for
the future in areas such as human resources and talent development and
the implementation of our technical service offerings. While we remain
prudent given the increasingly uncertain economic context, the
objectives announced today demonstrate our confidence in our strategy,
our employees and our financial model."
Revenue growth of 5.4%
Sodexo's consolidated revenue grew by 5.4% overall to 16 billion euro in
Fiscal 2011, with organic growth of 5.2%.
This level of organic growth is double the figure achieved in Fiscal
2009 and Fiscal 2010, and exceeds the targets announced at the beginning
of the year.
Organic growth accelerated during the course of the year, in particular
as a result of the following:
the success of Sodexo's offerings, and in particular its Facilities
Management services, which in Fiscal 2006 represented only 18% of
Group revenue, rising to 25% in Fiscal 2011. In fact Facilities
Management services grew three times as fast as Foodservices in the
course of the year.
Sodexo's solid positions in the Rest of the World, and in particular
its rapid development in the emerging markets.
Revenues for On-site Service Solutions increased + 5.2% to 15.3
billion euro, with organic growth increasing +5.1%.
Fiscal 2011 highlights by client segment included:
organic growth of 6.7% in Corporate, compared with 2% in Fiscal
2010; this reflects solid development for Sodexo in emerging markets
and the significant impact of the phasing in of comprehensive service
solutions contracts in the Justice, Defense and Corporate segments.
Sodexo registered 17.9% organic growth in Justice, 6.5% in Defense and
15.9% in Remote Sites;
3.5% growth in Health Care and Seniors, resulting from an extension of
the services supplied to existing clients in North America, offset by
a short-term decline in outsourcing in Europe and the United Kingdom;
a 3.4% increase in Education resulting in particular from continuing
growth in university enrollments in North America.
Most of the 6.9% organic growth in Motivation Solutions resulted
from the excellent performance of Sodexo's Latin American teams, with
issue volume rising to 13.7 billion euro, up nearly 9% (excluding
currency translation effects) over the prior year.
Sodexo's key performance indicators were as follows:
the 94% level of client retention was comparable to the previous year;
the 4.3% growth on existing sites compares to 2% for the prior year.
The acceleration results partially from the impact of rising food
inflation;
the rate of development, or new contract wins, was 7.4%;
the employee retention rate reached 61.9% with a level of 83.6% for
site managers (compared with 82.9% in the previous year);
the number of training hours provided was 4.8 million hours for all
employees worldwide, an increase of more than 150,000 hours over the
previous year;
85% of employees consider Sodexo to be a better employer than its
competitors according to the most recent employee engagement survey,
conducted in Fiscal 2010.
Operating profit increases 10.6%
Operating profit was 853 million euro, an increase of 10.6%. Excluding
currency effects, revenues rose 10.4%, representing an improved
operating margin of 0.20% over the previous year.
For On-site Service Solutions:
Operating profit increased
8.6% (excluding currency effects), mainly a result of:
improved profitability in North America, rising from 4.8% to 5.1%;
growth in volumes in the Rest of the World.
Motivation Solutions:
Operating profit rose by 20% at
constant exchange rates, thanks to higher volumes and productivity
gains. The operating margin for this activity increased from 32.4% in
Fiscal 2010 to 36.5% in Fiscal 2011, thereby reaching in advance the
medium-term objective set by the Group.
Increase in net income and earnings per share
Group net income was 451 million euro compared with 409 million euro for
the previous year, an increase of 10.3% (+9.3% at constant exchange
rates). Growth was slightly lower than the increase in operating profit,
a result primarily of a higher effective tax rate, which rose from 33%
to 35.4%.
Earnings per share was 2.95 euro, an increase of 11.7%. The increase is
higher than the rise in net income because of an increase in the number
of treasury shares. These shares are excluded from the calculation of
earnings per share.
Dividend
Given this good performance, the strong cash generation during the year
and its full confidence in the future, the Sodexo Board of Directors
will propose a dividend of 1.46 euro per share at the January 23, 2012
General Shareholders' Meeting, an increase of 8.1% over the dividend
paid in Fiscal 2010. This distribution represents a payout ratio of
around 50% of Group net income and a yield of 2.8% based on the share
price of 51.82 euro (as of August 31, 2011).
Board of Directors
The Board also approved the resolutions to be proposed to the General
Shareholders' Meeting, including the renewal for a period of three years
of the mandates of Sophie Clamens, Nathalie Szabo and Bernard Bellon and
the appointment as a director of Francoise Brougher. A citizen of France
and the U.S., Ms. Brougher joined Google in California in 2005 and is
currently responsible for global advertising sales and operations for
the small and medium companies sector. As a member of the Board, she
will contribute her knowledge of new information and communication
technologies.
A financial model that generates cash
Net cash provided by operating activities was 847 million euro compared
to 1,006 million euro generated in Fiscal 2010 which had benefited from
exceptional cash flows in Motivation Solutions, principally following
the start-up of the Ecopass service offering in Belgium.
As of August 31, 2011, net debt was 376 million euro compared with 656
million euro as of August 31, 2010, representing 15% of shareholders'
equity compared with 24% as of August 31, 2010. Gross debt repayment
capacity as of August 31, 2011 represented around 3.2 years of operating
cash flow.
During the year, Sodexo completed two refinancings:
a private placement with U.S. investors (United States Private
Placement) for 600 million USD at a fixed rate;
a multi-currency line of credit for an amount equivalent to 1.1
billion euro.
These agreements have enabled Sodexo to secure the refinancing of debt
maturing in 2012 and to extend the maturity of its borrowings.
Post-closing events
Sodexo announced September 6, 2011 the acquisition of 100% of Puras do
Brasil, for an enterprise value of approximately 525 million euro.
Created 30 years ago, Puras do Brasil is the No. 2 on-site service
solutions provider in Brazil and generates revenues of around 0.5
billion euro. With this acquisition, Sodexo becomes the leader in
on-site service solutions in Brazil, a rapidly growing market.
On September 22, 2011, Sodexo also completed the acquisition of Lentre
in France. The acquisition will enable Sodexo to develop its Prestige
business portfolio in France and abroad, as well as to further enhance
its expertise in luxury gastronomy.
On November 8, 2011, Sodexo concluded an agreement in the U.S. to
acquire 100% of Roth Bros, a company specializing in technical
maintenance services. Roth Bros, founded in 1923, has a nationwide
network coverage and designs, manages and delivers services for HVAC,
facilities automation, monitoring and maintenance and energy management
services. Roth Bros generates revenues of around 100 million USD.
Following these three acquisitions and on a pro forma basis, the Group's
financial ratios remain solid: the ratio of net debt to equity is around
40%.
Lastly, on September 15, 2011, Sodexo, Inc. and the Service Employees
International Union (SEIU) announced a settlement agreement under which
SEIU agreed to end a public campaign against Sodexo that had been
ongoing for nearly two years. Sodexo agreed to dismiss its civil suit
filed in March 2011 in the U.S. District Court of the Eastern District
of Virginia.
Fiscal 2012 objectives
At the November 7, 2011 meeting of the Board of Directors, Sodexo CEO
Michel Landel presented the Fiscal 2012 and medium-term outlook.
He emphasized the need for prudence in the increasingly uncertain
macro-economic climate, notably in western countries. The accumulated
debt of governments and rising unemployment exert significant pressure
on economic activity in both the public and private sectors.
In this context, Group management and all of the Sodexo teams are fully
mobilized to:
decrease operating costs and thus improve productivity at all levels,
notably through sharing resources and centralizing processes, and
limit the effects of food price inflation.
Michel Landel also reminded the Board of Directors that in Fiscal 2012
Sodexo will be providing services in connection with important sporting
events (notably the Rugby World Cup, which took place in October 2011
and the London Olympic Games, which will take place in July 2012).
The current fiscal year will also require significant investment to
facilitate the integration of Puras in Brazil, as well as Lentre in
France and Roth Bros in the United States. These investments will weigh
slightly on the Group's short term operating profitability.
In light of the above, for Fiscal 2012:
Sodexo has set an objective for Fiscal 2012 of growth in organic
revenues of between 5% and 8%,
In addition, the Group expects a contribution to consolidated revenues
of approximately 4 percentage points from recent acquisitions (Puras
do Brasil, Lentre and Roth Bros),
The Group has also set an objective of an increase in operating
profit of around 10% (excluding exchange rate effects and the
one-time effects of an adjustment to post-employment benefit plan
costs in the United Kingdom(1)).
In the medium term:
Sodexo confirms its objective of an annual average consolidated
revenue growth of 7%, and
encouraged by recent progress, the Group is targeting achieving an operating
margin of 6.3% in four years time.
Lastly, Michel Landel, CEO, concluded by noting Sodexo's considerable
strengths:
its independence;
a global footprint encompassing 80 countries and notably uncontested
leadership in all of the BRIC countries (Brazil, Russia, India and
China) which represent markets with high economic growth;
a well-diversified portfolio of clients (Corporate, Sports and
Leisure, Health Care, Seniors, Education, Defense and Justice);
an ever broader integrated offer for quality of life services, which
allows it to help its clients improve their performance;
a strong culture and values shared by all of the teams;
a rich and diverse pool of talent, and
an excellent financial model.
These strengths enable Sodexo to look forward with confidence and to
maintain its investments, particularly in human resources development
and strengthening its expertise.
(1) In conformity with new regulations in effect in the
United Kingdom, the Group decided at the end of October to
calculate future
price indexation using the consumer price
index (CPI), thus replacing the retail price index, in determining
retirement benefits that
Sodexo UK will be required to pay to
certain members of its retirement plan. The retrospective effect
of this change will result in a
favorable adjustment to
operating profit in the first half of Fiscal 2012.
Analysts briefing
SODEXO will hold a briefing today at 9:00 a.m. at the Capital 8
Conference Center (32, rue Monceau, Paris 8me) to comment on
the Fiscal 2011 results. The briefing also can be followed via webcast
on www.sodexo.com
Future financial communications
First quarter Fiscal 2012 revenues: January 11, 2012
General Shareholders' Meeting: January 23, 2012
First half Fiscal 2012 results: April 19, 2012.
About Sodexo
Sodexo, world leader in Quality of Daily Life Solutions
Quality of Life plays an important role in the progress of individuals
and the performance of organizations. Based on this conviction, Sodexo
acts as the strategic partner for companies and institutions that place
a premium on performance and employee well-being, as it has since Pierre
Bellon founded the company in 1966. Sharing the same passion for
service, Sodexo's 391,000 employees in 80 countries design, manage and
deliver an unrivaled array of On-site Service Solutions and Motivation
Solutions. Sodexo has created a new form of service business that
contributes to the fulfillment of its employees and the economic, social
and environmental development of the communities, regions and countries
in which it operates.
Key figures (as of August 31, 2011)
16 billion euro consolidated revenue
391,000 employees
33,400 sites
80 countries
50 million consumers served daily
21st largest employer worldwide
8.4 billion euro market capitalization (as of November 8,
2011)
This press release contains statements that may be considered as
forward-looking statements and as such may not relate strictly to
historical or current facts. These statements represent management's
views as of the date they are made and Sodexo assumes no obligation to
update them.
Appendix 1
Analysis of activities and geographic zones
1. On-site Service Solutions
North America
Revenues in North America were 6billion euro, an increase of 2.6%,
which includes organic growth of 4.3% net of an unfavorable currency
effect of 1.6%.
At 1.8%, organic growth in the Corporate segment has improved
compared to the previous two years, despite the lack of a turnaround in
employment at large corporations and unchanged participation in
foodservices programs on sites. The startup of comprehensive service
solutions contracts for clients such as GlaxoSmithKline, Henkel, Colgate
and British Aerospace made a major contribution to the return to growth
during the year.
Significant recent contracts won include new comprehensive service
contracts for clients such as Bristol Myers Squibb (6 sites across
several U.S. States), ADP (California and Utah), General Electric
Aviation (Ohio), Discover Financial Services, and Guardian Life
Insurance Company of America.
In addition, Sodexo renewed its partnership with the U.S. Marine Corps,
with two contracts covering 51 military bases in the United States. More
than a third of these contracts with the Marines will be executed in
partnership with companies selected for their commitment to social
progress and diversity.
In Health Care and Seniors, organic growth of 5.9% accelerated
compared to the prior year (+2.9%). This reflects the excellent client
retention rate achieved in Fiscal 2010 and Fiscal 2011, and successful
broadening of the service offering to a number of hospital and
retirement home chains. Comfort Keepers, a provider of non-medical
in-home services for seniors, also achieved strong revenue growth and
opened new franchises.
New contract wins confirmed the relevance of Sodexo's comprehensive
service offerings in this segment, and include Saint Vincent Medical
Center (Los Angeles, California), Jackson Memorial Hospital (Miami,
Florida), Crouse Hospital (Syracuse, New York), Rideout Memorial
Hospital (Marysville, California), Crozer Chester Medical Center
(Pennsylvania), and Bethesda Memorial Hospital (Florida).
Organic growth in Education was 4%, the result of increased
student enrolment at university campuses and schools and the positive
impact of new contracts, in particular the one for the 136 schools in
the Detroit Public School District in Michigan. For this contract, one
of the Group's largest in the Education segment in the United States,
Sodexo has been selected to provide technical maintenance, building
repair, ground maintenance and cleaning services.
Sodexo won numerous contracts during Fiscal 2011, notably including
Garvey School District (Rosemead, California), Delgado Community College
(New Orleans, Louisiana), University of Missouri (Saint Louis,
Missouri), and Utica College (Utica, NY).
Operating profit was 304million euro, up 10.3% compared to the prior
year, excluding currency effects. This increase primarily reflects the
following factors:
good control of the cost of accident, health and benefit plans, and
on-site productivity gains.
In addition, a non recurring charge of 15million euro had been
recognized in the prior fiscal year.
The operating margin rose by 0.3% to 5.1%, compared to 4.8% for Fiscal
2010.
Continental Europe
Revenues in Continental Europe increased by 3.5% to 5.5billion euro as
follows:
organic growth: 2.9%;
currency effects: 0.7%.
Despite the continuing uncertain economic environment, Corporate
returned to organic revenue growth at 4.4%. This performance reflects
the relevance of the Group's strategic positioning and the new
comprehensive solutions contracts started in 2010, including for the
Department of Justice in France (for 27 corrections facilities). It also
reflects the impact of strong new business trends in Germany, Spain and
Russia.
Numerous contracts were won during the year including in particular the
important Public-Private Partnership to build, equip, operate and
maintain the future French Department of Defense headquarters in Paris,
the "Balard" project, scheduled to be operational in December 2014.
Other recent contracts also include the RIE Tour 9 and the Department of
Defense for 5 sites (at Houilles, Valence, Lyon Carnot, Lyon Bellecour
and Grenoble) in France, Sirius Business Park Siemens and the M. Pire
building complex in Germany, Barcelona's Catalan Institute of Finance
and the Museo del Prado in Madrid in Spain, Kraft Foods in Belgium, and
Aga AB, Liding in Sweden.
Organic revenue growth in Health Care and Seniors was 0.8%,
reflecting moderate sales growth as a result of the momentary slowdown
in outsourcing in many countries during the year.
Business wins during the year include Maasstad Ziekenhuis and Jeroen
Bosch Ziekenhuis, in the Netherlands, the Clinique Belledone at
Saint-Martin d'Hyres and the Association pour Adultes et Jeunes
Handicaps (APAJH) in the Val d'Oise (6 sites) in France, the Pisa
Hospital (AOUP) and Ospedale San Giuseppe Grupo Multimedica in Italy,
and the Tilkka Hospital in Finland.
Organic growth in Education was 1.2%. Business wins in Sweden,
with schools for the cities of Helsingborg and Katrineholm, and in
Italy, with the University of Pavia, offset moderate sales development
in France at the beginning of the year. At year-end, however, Sodexo
renewed and broadened its services to the 314 schools of the City of
Marseille, and was also awarded a contract to supply the Oulu Region
Joint Authority for Education (OSEKK) in Finland.
Operating profit increased by 14 million euro, up 5.6%, to 247
million euro, excluding currency effects. Good control on administrative
costs was a major contributing factor to this growth.
The operating margin improved by 0.1%, from 4.4% in Fiscal2010 to 4.5%
in Fiscal 2011.
United Kingdom and Ireland
Revenues in the United Kingdom and Ireland were 1.2billion euro, down
1.1% at constant exchange rates.
Despite the steady decline in demand for foodservices, Sodexo returned
to growth in Corporate, with an increase of 0.3%, thanks to its
well-adapted offering of integrated services for clients such as Glaxo
Smith Kline, Johnson & Johnson and Pilkington.
In addition, Sodexo signed a 5-year renewal of the hospitality contract
for Royal Ascot and commenced the preparation of contracts for the Rugby
World Cup in October 2011 and for the 2012 Olympic Games in London.
Revenues in Health Care and Seniors were down 7.9% for the year
(excluding exchange rate effects and changes in the scope of
consolidation), resulting from:
The decision made in the prior year not to renew the contract for part
of the services outsourced to Sodexo by Kings Hospital; and
weak sales growth, as public-sector clients in particular delayed
decision-making at the beginning of the year.
The 2.9% organic revenue growth in Education reflects successful
development with universities, for example in the management of
accommodation services on the Solent, Medway, Lincoln and Southampton
campuses. This trend compares very favorably with the 6.5% decline
experienced in Fiscal 2010.
Recently signed new contracts notably include Birmingham City University
and New College Swindon.
Operating profit was 59million euro, up 1.8% excluding currency
effects. This increase reflects significant on-site productivity gains,
especially in the Health Care and Justice services segments. At the same
time, costs were incurred during the year in preparing for the major
Fiscal 2012 sporting events contracts, namely the Rugby World Cup and
the London Olympics.
The operating margin increased by 0.1% from 4.6% in Fiscal 2010 to 4.7%
in Fiscal 2011.
Rest of the World
Revenues in the Rest of the World (Latin America, Middle East, Asia and
Australia and Remote Sites) were 2.6 billion euro.
The pace of growth continued to accelerate throughout the year, and
organic growth reached 15.9%.
Revenues in Corporate grew by 16.3%, compared to 7.7% in Fiscal
2010. This acceleration occurred in all geographic regions:
In Latin America, business wins were numerous, including with Natura,
Petrobras Fafen and Vale Norte in Brazil, with mining and oil and gas
clients such as Compaa Minera Zaldivar S.A, Excon and SQM in Chile,
Xstrata Fuerabamba, Vale FM, Plus Petrol Norte and Southern Peru
Copper Corp./Cuajone-Toquepala in Peru. Growth in on-site activities
was also driven by the high level of industrial activity and a high
rate of food inflation.
In China and India, where Sodexo holds undisputed leadership
positions, the Group signed a large number of contracts, including
with Volkswagen India, Pune and Renault Nissan, in India, and with Bao
Steel (4 sites), Andrew Telecommunications, Toshiba Elevator,
Shanghai, Nokia Beijing and Dongguan, in China.
Sodexo also achieved multiple business wins in Remote Sites. In
Australia, for instance, Sodexo won contracts with Rio Tinto Pilbra
Iron, Western Turner, Karara Mining and the Freeport McMoran Copper
and Gold mine, and TFM in the Democratic Republic of Congo.
Growth in Health Care and Seniors and in Education in
the Rest of the World was 12.4% and 10.7%, respectively. Sodexo's
expertise in these segments is starting to pay off, with the signature
of new contracts such as those with the Medanta-The Medicity hospital
in India, Shenzhen TCM Hospital in China, Queen Sirikit Medical Center
in Thailand, and Emirates National School in the United Arab Emirates.
Operating profit in the Rest of the World increased 17.1% at
constant exchange rates to 84million euro. This increase reflects
growth in volumes and substantial productivity gains, which more than
offset significant inflationary pressures in a number of countries.
Moreover, the Group continued to invest in training and human resources
development in these countries, given their strong potential in the
medium term, as well as to reinforce its competencies in technical
maintenance services.
The operating margin of 3.2% was stable compared to that of the prior
fiscal year.
2. Motivation Solutions
Issue volume (face value multiplied by the number of vouchers and
cards issued) was 13.7 billion euro. Organic growth in issue volume was
8.8%, with an additional favorable 1.2% currency translation effect.This
issue volume comprised the following:
6.2 billion euro in Latin America, with 12.2% organic growth, and
7.5 billion euro in Europe and Asia, with 6.2% organic growth.
Strong growth in Latin America resulted from a combination of new
customer wins, business synergies resulting from the broadening of
existing client service offerings and the increased face value of
vouchers.
In Europe, this performance includes an increase of more than 10% in
vouchers issued for the Belgian Bureau of Labor (ONEM), and from faster
growth in France thanks to a successful sales drive.
Revenues totaled 717million euro, with 6.9% organic growth.
In Latin America, which accounts for 53% of revenues, organic growth was
particularly solid at 13.6%. This included an increase in the number of
beneficiaries and of the face value of vouchers, business wins such as
Fundacao, Petrobras, Universidade Estado do Amazonas in Brazil, Servicio
Nacional Integrado De Administraction Aduarena y Tributaria in
Venezuela, and BBVA Comercializadora in Chile, and the positive impact
of interest rate rises, especially in Brazil.In Europe and Asia, organic
growth of 0.4% resulted from:
good sales momentum in France, thanks in particular to the success of
the CESU (service voucher) offerings;
a slight decrease in revenues in Central Europe, albeit at a lesser
rate than the prior year;
some persistent pressures on client commissions as a result of strong
competition in some countries and on incentive programs.
Recent business wins include in particular the global Amadeus
(Incentive) contract, a major contract for Life Insurance Corp (a
leading public life insurance company in India), Hewlett-Packard and Gas
Authority of India (India), Coca Cola and KGHM Polska in Poland, Audi
Motor in Hungary, and Santander Consumer Bank in Germany.
The difference between growth in issue volume and that of revenues,
chiefly in Europe, resulted from the strong growth in issue volume on
the popular ONEM contract in Belgium. This growth does not translate
into revenue growth in the same proportion because of the size and
structure of the contract.
Operating profit totaled 262million euro, a 21.9% increase compared to
that of Fiscal 2010. Excluding exchange rate effects, operating profit
rose 20%, reflecting the operating leverage arising from increased
volumes and a more efficient production process. These productivity
gains principally reflected synergies achieved in Brazil over the past
three years following the integration of VR, but also resulted from the
success of action plans in Europe.
The activity's operating margin was 36.5%, versus 32.4% in the prior
year, enabling Sodexo to achieve its medium-term objective in this
activity already as of Fiscal 2011.
3. Corporate expenses
Corporate expenses were 86million euro, an increase of 19 million euro
over the prior year. This increase stems mainly from acquisition costs
and from the 10 million euro provision covering two years of the Profit
Sharing Bonus, pursuant to a law introduced in France on July 28, 2011
for companies increasing dividend distributions in France.
Appendix 2
Full Year financial statements
Statement of income
(in euro million)
Fiscal 2011
Variation
Fiscal 2010
EURM
% Revenues
EURM
% Revenues
Revenue
16,047
100
%
5.4
%
15,230
100
%
Cost of sales
(13,529
)
- 84.3
%
(12,846
)
- 84.3
%
Gross profit
2,518
15.7
%
5.6
%
2,384
15.7
%
Sales department costs
(242
)
- 1.5
%
(226
)
- 1.5
%
General and administrative costs
(1,408
)
- 8.8
%
(1,358
)
- 8.9
%
Other operating income
10
12
Other operating expenses
(25
)
- 0.2
%
(41
)
- 0.3
%
Operating profit before financing costs
853
5.3
%
10.6
%
771
5.1
%
Financial income
57
0.4
%
62
0.4
%
Financial expenses
(204
)
- 1.3
%
(212
)
- 1.4
%
Share of profit of associates
15
0.1
%
14
0.1
%
Profit before tax
721
4.5
%
13.5
%
635
4.2
%
Income tax expense
(250
)
- 1.6
%
(205
)
- 1.3
%
Net result from discontinued operations
Profit for the period
471
2.9
%
9.5
%
430
2.8
%
Minority interests
20
0.1
%
21
0.1
%
Group profit for the period
451
2.8
%
10.3
%
409
2.7
%
Earnings per share (EUR)
2.95
2.64
Consolidated balance sheet
ASSETS
EQUITY AND LIABILITIES
(in euro million)
August
31, 2011
August
31, 2010
(in euro million)
August
31, 2011
August
31, 2010
Shareholders' equity
Common stock
628
628
Additional paid-in capital
1,109
1,109
Retained earnings
1,026
783
Consolidated reserves
(228
)
187
Total Group shareholders'
equity
2,535
2,707
Non-current assets
Non controlling interests
30
32
Property, plant and equipment
513
531
Total shareholders' equity
2,565
2,739
Goodwill
4,283
4,634
Other intangible assets
492
527
Non-current liabilities
Client investments
222
228
Borrowings
2,262
2,534
Financial derivatives
1
0
Associates
70
71
Employee benefits
281
348
Financial assets
115
142
Other liabilities
190
243
Other non-current assets
14
14
Provisions
62
64
Deferred tax assets
153
162
Deferred tax liabilities
150
122
Total non-current assets
5,862
6,309
Total non-current liabilities
2,946
3,311
Current assets
Current liabilities
Financial assets
9
6
Bank overdraft
23
59
Derivative financial instruments
2
6
Borrowings
152
150
Inventories
252
235
Derivative financial instruments
10
25
Income tax receivable
72
81
Income tax payable
120
138
Trade receivable
3,142
3,033
Provisions
47
61
Restricted cash and financial
assets related to the Motivation
Solutions activity
622
578
Trade and other payables
3,125
2,985
Cash and cash equivalents
1,448
1,527
Vouchers payable
2,421
2,307
Total current assets
5,547
5,466
Total current liabilities
5,898
5,725
Total assets
11,409
11,775
Total liabilities
and equity
11,409
11,775
Consolidated statement of cash flow
(in euro million)
Fiscal 2011
Fiscal 2010
Operating activities
Operating profit before financing costs
853
771
Non cash items
244
240
(9
)
19
Losses (gains) on disposals and other, net of tax
15
9
Dividends received from associates
13
9
Change in working capital from operating activities
100
257
(32
)
(12
)
change in client and other accounts receivable
(235
)
(177
)
change in suppliers and other liabilities
261
201
change in Service Vouchers and Cards to be reimbursed
170
233
change in financial assets related to the Service Vouchers and
Cards activity
(64
)
12
Interest paid
(144
)
(141
)
Interest received
14
28
Income tax paid
(239
)
(186
)
Net cash provided by operating activities
847
1,006
Investing activities
Tangible and intangible fixed assets investments
(242
)
(236
)
22
26
Change in Client investments
(22
)
(19
)
Change in financial investments
12
(23
)
Acquisitions of consolidated subsidiaries
(2
)
(23
)
Disposals of consolidated subsidiaries
0
3
Net cash used in investing activities
(232
)
(272
)
Financing activities
Dividends paid to parent company shareholders
(208
)
(197
)
Dividends paid to minority shareholders of consolidated companies
(21
)
(18
)
Change in treasury shares
(161
)
(90
)
2
0
Acquisition of non-controlling interests
(3
)
(2
)
429
321
(610
)
(393
)
Net cash provided by (used in) financing activities
(572
)
(379
)
INCREASE IN NET CASH AND CASH EQUIVALENTS
42
355
Net effect of exchange rates on cash
(86
)
(49
)
Cash and cash equivalents, as of beginning of period
1,468
1,162
CASH AND CASH EQUIVALENTS, AS OF END OF PERIOD
1,424
1,468
Segment information: revenue
Revenue
(in euro million)
Fiscal
2011
Fiscal
2010
Organic
growth (1)
Exchange
rate
variation(2)
External
Growth
Variation
at current
rate
On-site Service Solutions
6,005
5,850
+ 4.3
%
- 1.6
%
-
+ 2.6
%
5,473
5,289
+ 2.9
%
+ 0.7
%
- 0.1
%
+ 3.5
%
1,245
1,252
- 1.1
%
+ 0.5
%
-
- 0.6
%
2,624
2,194
+ 15.9
%
+ 4.4
%
- 0.7
%
+ 19.6
%
Total
15,347
14,585
+ 5.1
%
+ 0.3
%
- 0.2
%
+ 5.2
%
Motivation Solutions
717
663
+ 6.9
%
+ 1.3
%
-
+ 8.2
%
Elimination
- 17
- 18
Total
16,047
15,230
+ 5.2
%
+ 0.4
%
- 0.2
%
+ 5.4
%
1 Organic growth: revenue growth, at constant scope of
consolidation and excluding exchange rate effects.
2 It should be noted that, unlike exporting companies,
the revenues and expenses of Sodexo subsidiaries are denominated
in the
same currency. Consequently, foreign exchange
variations do not have an operational risk. The average exchange
rate for the
USD/euro for Fiscal 2011 was 1.3896.
Segment information: operating profit
Operating profit
(in euro million)
Fiscal 2011
Fiscal 2010
Change
Before corporate expenses
On-site Service Solutions
-- North America
304
281
+ 8.2
%
247
233
+ 6.0
%
59
57
+ 3.5
%
84
70
+ 20
%
Motivation Solutions
262
215
+ 21.9
%
Headquarters
- 86(1
)
- 67
-
Elimination
- 17
- 18
-
TOTAL
853
771
+ 10.6
%
(1) Including a EUR10 million provision related to the Prime de
Partage des Profits (Profit-sharing Bonus), pursuant to the
French law of
July 28, 2011
Revenue
On-site Service Solutions by segment
Consolidated Group
(in euro million)
Fiscal 2011
Fiscal 2010
Organic
growth
Corporate
7,737
7,174
+ 6.7
%
Health Care and Seniors
4,129
4,014
+ 3.5
%
Education
3,481
3,397
+ 3.4
%
TOTAL
15,347
14,585
+ 5.1
%
North America
(in euro million)
Fiscal 2011
Fiscal 2010
Organic
growth
Corporate
1,290
1,282
+ 1.8
%
Health Care and Seniors
2,378
2,281
+ 5.9
%
Education
2,337
2,287
+ 4.0
%
TOTAL
6,005
5,850
+ 4.3
%
Continental Europe
(in euro million)
Fiscal 2011
Fiscal 2010
Organic
growth
Corporate
3,183
3,028
+ 4.4
%
Health Care and Seniors
1,382
1,367
+ 0.8
%
Education
908
894
+ 1.2
%
TOTAL
5,473
5,289
+ 2.9
%
United Kingdom and Ireland
(in euro million)
Fiscal 2011
Fiscal 2010
Organic
growth
Corporate
895
887
+ 0.3
%
Health Care and Seniors
228
246
- 7.9
%
Education
122
119
+ 2.9
%
TOTAL
1,245
1,252
- 1.1
%
Rest of the World
(in euro million)
Fiscal 2011
Fiscal 2010
Organic
growth
Corporate
2,369
1,977
+ 16.3
%
Health Care and Seniors
141
120
+ 12.4
%
Education
113
97
+ 10.7
%
TOTAL
2,623
2,194
+ 15.9
%
Appendix 3
Selection of new clients
Corporate
ADIDAS AG LACES, Herzogenaurach, Germany (1,600 people)
ADP,
France (110 buildings at Roissy and Orly airports)
Aga AB,
Liding, Sweden (750 people)
Alcatel-Lucent India Limited, 9
sites (across Mumbai, Bangalore, Chennai, Gurgoan and Noida), India
(5,600 people)
ALSTOM GRID (headquarters), Puteaux, France
(1,400 people)
Andrew Telecommunications, (China) Co., Ltd.,
Suzhou, China (2,300 people)
Atlas Copco Rock Drills AB,
Orebro, Sweden (1,700 people)
ATOS (42 sites in France)
Automatic
Data Processing Inc., 4 sites (La Palma, San Dimas, Buena Park,
California, and Salt Lake City, Utah), USA (2,870 people)
Bombardier
Transportation Sweden AB, Vasteras, Sweden (1,200 people)
Bristol-Myers
Squibb, six new sites (New York and Syracuse, New York, Devens,
Massachusetts, Mt. Vernon, Indiana, Humacao and Manati, Puerto Rico,
United States (2,047 people)
Bundesbeschaffung GmbH (BBG),
Tirol & Vorarlberg, Austria (120 people)
CB21 GdF Suez,
La Defense, France (1,000 meals per day)
CEA Nano innov, Gif
sur Yvette, Ile de France (600 residents, 18,000 m)
Discover
Financial Services, multiple sites (Arizona, Ohio, Illinois and
Delaware), USA (10,047people)
Edison International,
Rosemead, California, USA (4,500 people)
ETH Alto Taquari, 2
sites (Costa Rica and Alto Taquari), Brazil (3,685 people)
Eurosic
- 52 Hoche, Paris, France (300 people)
ExxonMobil Qatar Inc.,
Doha, Qatar (255 people)
GAN Elyses (head office),
Paris La Defense, France (570 people)
GE Aviation, Evendale,
Ohio, USA (7,200 people)
GE China, Shanghai, China (2,700
people)
GEOBAN - SANTANDER TRIPARK, Madrid, Spain (1,400
people)
The Guardian Life Insurance Company of America,
several sites (New York, New York, Bethlehem, Pennsylvania, Pittsfield,
Massachusetts, Appleton, Wisconsin, and Spokane, Washington) USA
(4,825people)
Immeuble Carr Playel, Saint-Denis,
France (1,300 people)
Immeuble Citalium, Montevrain, France
(550 people)
Immeuble Le Mermoz, Le Bourget, France (700
meals per day)
Institut Catalan de Finances, Barcelona, Spain
Invensys,
California and Illinois, USA (825 people)
JANSSEN CILAG Gmbh,
Neuss, Germany (900 people)
Knesset, Israel
Kraft
Foods LU, Herentals, Belgium
Lexis Nexis Specialized
Services, Inc., Alpharetta, Georgia, USA (1,650 people)
Maersk
Container Industry Dongguan Ltd., Dongguan, China (2,800 people)
Medtronic
Puerto Rico, Inc., 3 sites, Puerto Rico, United States (3,106 people)
MONDI
SCP, Ruzomberok, Slovakia (1,400 people)
M. PIRE, Munich,
Germany (2,000 people)
Nokia manufacturing sites, Beijing &
Dongguan, China
Pershing & Co., two sites, New Jersey
(3,000 people)
Plaza Indonesia Mall, Indonesia
Port
San Antonio &Lackland AFB, San Antonio, Texas (3,000 people)
Renault
Nissan, Oragadam, India (5,000 people)
Renault Nissan
Automotive Pvt Ltd, Tamilnadu, India (5,300 people)
Restaurant
inter-entreprises Princesse, Louveciennes, France (550 people)
RIE
TOUR 9, Montreuil-Sous-Bois, France (1,300 people)
RIE
HORIZONS, Boulogne Billancourt, France (1,100 people)
RIE
Quadrants, Guyancourt, France (600 people)
San Jose Job Corp,
San Jose California, USA (575 people)
Seven Seas Limited,
Hull, United Kingdom (290 people)
Shimano Bicycle Parts Co.,
Ltd., Tianjin (1,100 people) and Kunshan (2,500 people) China
Siderar,
San Nicolas, Argentina (600 people)
Sirius Business Park -
Siemens Munchen, Munich, Germany (1,000 people)
SSAB,
Nykoping, Sweden (700 people)
SWISS LIFE, Zurich,
Switzerland (1,500 people)
Toshiba Elevator (China) Ltd.,
Shanghai, China (800 people)
UpplandsVsbykommun (Multihuset),
Stockholm, Sweden
Uppsala akademifrvaltning KB, Uppsala,
Sweden (175,000 m2)
Valimotie 21, Helsinki, Finland (600
people)
Volkswagen India Pvt. Ltd., Pune, India (4,200
people)
Wuhan City Planning & Design Institution, Wuhan,
China (260 people)
Health Care and Seniors
AOUP Pisa, Pisa, Italy (1,215 beds)
Association APAJH 95, six
sites in Val d'Oise, France (350 beds)
Augusta Health,
Fishersville, Virginia, United States (255 beds)
Bayou Manor,
Houston, Texas, United States (227 beds)
Bethesda Memorial
Hospital, Boynton Beach, Florida, United States (362 beds)
CAS
de Paris, Paris, France (28,000 meals per month)
C.C.A.S.
d'Angers, Angers, France (1,300 people)
CaprottiZavaritt,
Bergamo, Italy (70 beds)
Centre de l'Arche, Saint Saturnin,
France (116 beds)
ClnicaBicentenario - Estacion Central,
Santiago, Chile (800 beds)
Clinique Belledone, Saint-Martin
d'Hyres, France (275 beds)
Crouse Hospital, Syracuse, New
York, USA (180 beds)
Crozer Chester Medical Center, Upland,
Pennsylvania, United States (653 beds)
Fondation Ophtalmologique
de Rothschild, Paris, France (112 beds)
Fuxing Hospital, Beijing,
China (900 people)
Group ADEF, France (33 sites - 5,000
people)
Henry Mayo Newhall Memorial Hospital, Valencia,
California, United States (167 beds)
HOSPITAL PORTUGUES,
Salvador, Brazil (350 beds)
Jackson Memorial Hospital,
Miami, Florida, USA (1,857 beds)
Jeroen Bosch Ziekenhuis,
Hertogenbosch, Netherlands (1,250 people)
John H. Stroger of
Cook County, Chicago, Illinois USA (464 beds)
Las Palmas
Medical Center, El Paso, Texas USA (221 beds)
Ligue havraise
d'aide aux handicaps, 14 sites, Seine Maritime, France
Lundskommun,
Lund, Sweden
Maastadziekenhuis, Rotterdam, Netherlands
(3,600 people)
MAX Healthcare, Bhatinda, India (200 beds)
Medanta
- The Medicity, Gurgaon (Haryana), India (600 beds)
Mercy
Hospital of Philadelphia, Philadelphia, Pennsylvania, USA (150 beds)
National
University Hospital, Singapore (1,000 beds)
Policl.
Guipuzcoa, San Sebastian, Spain (83 beds)
Prsence Verte
Services, Region of Poitiers, France (800 people)
Rideout
Memorial Hospital, Marysville, California, United States (80 beds)
Sacred
Heart Hospital, Eau Claire, Wisconsin, USA (194 beds)
St.
Vincent Medical Center, Los Angeles, California, United States (341
beds)
San Giuseppe Gruppo Multimedica Hospital, Milan, Italy
(300 beds)
ShenZhen Traditional Chinese Medicine Hospital,
Shenzhen, China (1,400 people)
St. Bernard Hospital,
Chicago, Illinois, USA (198 beds)
St. Johnland Nursing Center,
Kings Park, New York, USA (250 beds)
St. Mary's Hospital,
Decatur, Illinois USA (226 beds)
Trinity Mother Frances Hospital,
Tyler, Texas, USA (330 beds)
Tilkka Hospital - Etera - Esperi,
Helsinki, Finland (400 beds)
University Hospital of Skane, Lund,
Sweden (980 beds)
University Medical Center, Las Vegas,
Nevada, USA (564 beds)
Waterbury Hospital, Waterbury,
Connecticut USA (300 beds)
Education
Belvidere Community United School District 100 - K-12 Nutrition,
Belvidere, Illinois, USA, (8,800 people)
Birmingham City
University, Birmingham, United Kingdom (25,000 people)
Cardinal
Stritch University, Wisconsin, USA (6,276 people)
China
Europe International Business School, Shanghai, China (400 people)
City
and Islington College, London, United Kingdom (10,000 people)
College
of DuPage, Illinois, USA (27,083 people)
Comune di Muggi,
Milan, Italy (1,800 students)
Dalian Maple Leaf Educational
Systems, Dalian, China (316 people)
Darton College,
Georgia, USA (5,854 people)
Delgado Community College, New
Orleans, Louisiana, USA (15,340 students)
Detroit Public Schools,
Detroit, Michigan, USA (101,000 students)
Emirates National
School, Abu Dhabi (2 campuses) and AL Ain (1 campus) (3,100 students)
Garvey
School District, Rosemead, California, USA (3,700 students)
Greensboro
College, Northern California, USA (1,264 people)
Groupement
des villes de Palaiseau et d'Igny, France (3,300 people)
Guam
Public Schools, Guam Territory (31,000 people)
Harris
Academy Falconwood, London, United Kingdom
Holyoke City
School District, Holyoke, Massachusetts, USA (5,915 students)
The
International School of Macao (TIS), Hong Kong, China (935 people)
Lewisville
Independent School District, Lewisville, Arkansas, USA (1,000 people)
Lockhart
Independent School District, Lockhart, Texas, USA (4,551 people)
Mt.
San Antonio College, Walnut, California, USA (31,602 people)
National
Heritage Academy, SE Grand Rapids, Michigan, USA (26,021 people)
New
Mexico State University Main Campus, Las Cruces, New Mexico, USA
(18,497 people)
Norrkpingskommun, Norrkping, Norrkping,
Sweden (153,000 m2)
NSW Police College, Goulburn, Australia
(3,000 people)
Oconee County School District - K-12 Nutrition,
Walhalla, South Carolina, USA (10,729 people)
Oregon Institute
of Technology, Klamath Falls, Oregon, USA (3,915 people)
OSEKK,
Oulu, Finland (3,500 people)
Rogers State University - Campus
Dining, Claremore, USA (4,154 people)
Saginaw Public Schools,
Saginaw, Michigan, USA (9,500 people)
Silsbee Independent School
District, Silsbee, Texas, USA (3,044 people)
Stichting
Fontys Hogescholen, Eindhoven, Netherlands (24,000 people)
Texas
A & M University, Corpus Christi, Texas, USA (9,468 people)
UNIVERSIDAD
REY JUAN CARLOS I, Madrid, Spain (700 people)
Universita di
Pavia, Pavia, Italy (8,312 students)
Universiteit van
Tilburg, Tilburg, Netherlands (14,000 students)
University
of Missouri - St. Louis, St. Louis, Missouri, USA (16,000 students)
Utica
College, Utica, NY, USA (2,465 students)
City of Marseilles,
Marseilles, France (2,065,760 meals / year)
City of Sarcelles,
Sarcelles, France (3,900 people)
Western Texas College,
Snyder, Texas (2,238 people)
World Learning SIT Graduate
Institute, Brattleboro, Vermont, USA (1,270 students)
Remote Sites
Agrosuper - Huasco, Copiapo, Chile (600 people)
Ausco
Modular Pty Limited, Stayover Village Dalby, Queensland Australia
(200 people)
AZUCA HOCHSCHILD, Arequipa, Peru (500 people)
BP,
Thunderhorse, Gulf of Mexico offshore (300 people)
Campamento
Sierra Gorda, Antofagasta, Chile (6,250 people)
CAMPOSOL,
Trujillo, Peru (3,500 people)
Compaa Minera Zaldivar SA /
Barrick, Antofagasta, Chile (800 people)
Crisil, Mumbai,
India (1,700 people)
Entrepose El Merk, Algeria (700 people)
ETH
- AGUA EMENDADA, Perolndia Brazil (1,818 people)
Evans
Landing, Australia (210)
EXCON (SQM), Antofagasta, Chile
(650 people)
The Floatel Jascon 31 (TOTAL), Angola (460
people)
FQM Australia Nickel Pty Limited, Ravensthorpe site,
Western Australia (780 people)
Freeport McMoran Copper & Gold, TFM
(TenkeFungurume Mining), Democratic Republic of Congo (4,200 people)
Global
Geophysical Services, Rhourde El Bagal, Algeria (300 people)
Halliburton,
Algeria - 3 sites (Algiers, Hassi Messaoud, Desert Remote Site) (550
people)
Hamersley Iron Pty Limited - Hope Downs 4 Rail
Project & Hope Downs 4 Mine, Western Australia (1,460 people)
Minera
El Morro - Proyecto Obras Tempranas, Vallenar, Chile (250 people)
Newmont
Mining Services Pty Ltd, Village Tanami, Western Australia (770
people)
Noble Drilling, Homer Ferrington (platform),
Netherlands (110 people)
Ocean Rig - Leiv Eriksson
semi-submersible drilling rig, Denmark (120 people)
OGEC,
Rhourde El Bagal, Algeria (700)
PIE, 2 sites, Algeria (400
people)
Pluspetrol Norte, Iquitos, Peru (2,300 people)
Polyus
Gold Natalkinskoe minefield, Magadan, Russia
Rio Tinto,
India (110 people)
Rio Tinto Pilbra Iron, Western Turner,
Australia (1,000 people)
Seadrill, West Gemini (offshore),
Angola (108 people)
SERPETBOL FLOWLINE, Cusco, Peru (720
people)
SEVAN MARINE, Rio de Janeiro, Brazil (115 people)
SOUTHERN
ILO-CUAJONE TOQUEPALA, Cuajone-Toquepala, Peru (1,500 people)
Sterlite
Industries Limited, Vile Parle (East), Mumbai, India
TASCO
Inland Pty Limited, Caltex Narranderapetrol station site, New South
Wales, Australia
TEKFEN, JorfLasfar, Turkey (650 people)
TEKFEN
PIPELINE, Khouribga, Morocco (2,200 people)
Total,
Camelot (barge hotel) Congo (650 people)
Total, FPSO unit
(offshore)PAZFLORand Flotel, Angola (400 people)
Transocean,
Sinop, Turkey (175 people)
Transocean / ONGC, Semi
Submersible Rig "M.G. Hulme Jr.," offshore India (140 people)
Vale
FM, Piura - Bayovar - Lima, Peru (1,000 people)
Xstrata
Fuerabamba, Cusco, Peru (1,100 people)
Defense
Headquarters of the French Ministry of Defence, Balard site,
Paris, France (9,600 people)
U.S. Marine Corps, United
States (51 mess halls)
French Ministry of Defence, 5 sites
(Houilles, Valence, Lyon Carnot, Lyon Bellecourt and Grenoble), France
(2,000 people)
Sports and Leisure
Baker Hughes, Aberdeen, Scotland (1,700 people)
Museo del
Prado, Madrid, Spain (1,200 people)
Sportscotland,
Largs, Ayrshire, Scotland (20,000 visitors a year)
Motivation Solutions
Europe
Airbus Espaa, Spain (Gift Pass, 700 beneficiaries)
ARIS
(Ali Raif Pharmaceutical), Turkey (Meal Pass, 450 beneficiaries)
Amboseli,
Czech Republic (Meal Pass, 200 beneficiaries)
APA Canal 2000,
Romania (Public water services) (Meal Pass, 640 beneficiaries)
Audi
Motor, Hungary (Meal Pass, 5,800 beneficiaries)
Auto
Cobalcescu, Romania (Meal Pass, 325 beneficiaries)
AZ
Turnout Sint Elizabeth Campus, Belgium (Meal Pass, 800 beneficiaries)
Government
Offices of Borsod Abaj Zempln, Hungary (Meal Pass, 2,500
beneficiaries)
Coca-Cola, Poland (Gift Pass, 3,200
beneficiaries)
Conseil Gnral del'Aveyron, France (Meal
Pass, 1,030 beneficiaries)
Crdit Agricole Charente Perigord,
France (Meal Pass, 500 beneficiaries)
Forestry Department of
Maramures, Romania (Meal Pass, 510 beneficiaries)
Dow
AgroScience, Czech Republic (Gift Pass)
Enea Operator,
Poland (Gift Pass, 2,000 beneficiaries)
EVN Bulgaria
Elektrorazpredelenie AD, Bulgaria (Food Pass, 3,300 beneficiaries)
FasteWeb,
Italy (Meal Pass, 3,000 beneficiaries)
Generali, (Meal Pass,
600 beneficiaries)
Hospital Kanizsa Dorothy, Hungary (Meal
Pass, 850 beneficiaries)
Psychiatric Hospital Beau Vallon,
Belgium (Meal Pass, 640 beneficiaries)
St. Georges Hospital,
Bulgaria (Food Pass, 2,700 beneficiaries)
Huawei Telecom, Turkey
(Gift Pass, 762 beneficiaries)
Karpacka, Poland (Gift Pass)
KGHM
Polska, Poland (Gift Pass, 4,650 beneficiaries)
City of
Biarritz, France (Meal Pass, 850 beneficiaries)
Meryll Lynch
International Bank, Germany (Meal Pass, 120 beneficiaries)
Konin
Mine, Poland (Gift Pass, 4,500 beneficiaries)
National
emergency center, Slovakia (Meal Pass, 430 beneficiaries)
ON
Semiconductor, Belgium (Meal Pass, 600 beneficiaries)
Reckitt
Benckiser, Romania (Incentive program)
Santander Consumer
Bank, Germany (Meal Pass, 770 beneficiaries)
SAS - Security
Alarm System, Bulgaria (Food Pass, 3,440 beneficiaries)
Sberbank,
Russia (Gift Pass, 5,000 beneficiaries)
Teleperformance,
Tunisia (Meal Pass, 3,250 beneficiaries)
Bulgarian National
Television, Bulgaria (Food Pass, 1,400 beneficiaries)
Chemical
Plant "Police", Poland (Gift Pass, 3,000 beneficiaries)
Latin America
Administradora De Fondo de PensionesProvida (BBVA Group), Chile
(Meal Pass, 950beneficiaries)
Anhanguera Educacional,
Brazil (Incentive, 800 beneficiaries)
BBVA Comercializadora, Chile
(Meal Pass, 450 beneficiaries)
CGMP - Centre for Management of
Payments, Brazil (Incentive, 2,800 Beneficiaries)
CNH Latin
America, Brazil (Incentive, 1,500 beneficiaries)
National
Books Commission, Mexico (Food Pass, 600 beneficiaries)
Brazilian
Cartridge Company, Brazil (Food Pass, 845 beneficiaries)
Consortium
building CCPR - Repar, Brazil (Meal Pass, 3,500 beneficiaries)
Cordialsa
Colombia, Colombia (Meal Pass, 250 beneficiaries)
Delta
Construcoes, Brazil (Food Pass, 1,800 beneficiaries)
Fuller
Beauty Cosmetics, Mexico (Food Pass, 1,500 beneficiaries)
Fundacao,
Brazil (Gift Pass, 2,350 beneficiaries)
Management of Criminal
Investigation and Interpol, Colombia (Mobility Pass, 210
beneficiaries)
GlaxoSmithKline, Chile (Meal Pass, 190
beneficiaries)
IBM, Uruguay (Food Pass, 137 beneficiaries)
National
industry of metallurgy, Venezuela (Food Pass, 470 beneficiaries)
National
Institute for Land Management, Venezuela (Food Pass, 3,080
beneficiaries)
Microsoft, Mexico (Food Pass, Restaurant
Pass, Mobility Pass, 4,523 beneficiaries)
Operadora Binmario,
Venezuela (Food Pass, 500 beneficiaries)
Petrobras, Brazil
(Food Pass, 4,000 beneficiaries)
Secretariat of Communications
and Transport, Mexico (Mobility Pass, 280 beneficiaries)
Operational
Services Benavides, Mexico (Food Pass, 4,423 beneficiaries)
Servicio
Nacional Integrado de Administracin Aduanera Y Tributaria (Seniat),
Venezuela (Food Pass, 11,150 beneficiaries)
University Estado do
Amazonas, Brazil (Food Pass, 500 beneficiaries)
Asia
Banque Danamon, Indonesia (Product Promotion, 36,000
beneficiaries)
Banque Ekonomi Raharja, Indonesia (Product
Promotion, 2,759 Beneficiaries)
Construction company of the
subway system in Shanghai, China (Gift Pass, 3,988 beneficiaries)
Gas
Authority of India, India (Meal Pass, 2,000 beneficiaries)
Hewlett
Packard, India (Meal Pass, 21,530 beneficiaries)
KPIT
Cummins Infosystems, India (Meal Pass, 1,500 beneficiaries)
Life
Insurance Corporation of India, India (Meal Pass, 70,000
beneficiaries)
Power Grid Corporation, India (Meal Pass,
4,076 beneficiaries)
VMware Software, India (Meal Pass, 800
beneficiaries)
