Good morning, everyone, and thank you for joining us for our Fiscal 2026 earnings call. I'm Juliette Klein, Head of Investor Relations.

With me today are Thierry Delaporte, our CEO, and Sébastien de Tramasure, our CFO, who will take you through the presentation. After that, we will open the line for questions.

As usual, we'll ask you to please limit yourself to two questions and one follow-up. If you have any additional questions after the call, please don't hesitate to reach out to the IR team.

With now, I'll hand over to Thierry.

Thank you, Juliette. Good morning, everyone.

Thank you for joining us. Before we go through the numbers, I'd like to step back for a moment on the year we have just completed.

Fiscal 2026 was a year of diagnosis and reset. What have we done?

Over the past year, I've spent significant time with our teams and clients across our businesses. This has given me a clear view of the issues we need to address, but also of Sodexo's considerable strength: the quality and the commitment of our people, the depth of our client relationships, and our expertise and our global reach.

These are absolutely powerful assets, but while our performance has not consistently reflected them, and that's the point. Over the year, we worked as a leadership team to turn that diagnosis into Shift and Grow, a clear action plan which is now being deployed across the group.

In July, at our investor update, we presented that plan to you. Its first phase, covering Fiscal '26 and '27, is about rebuilding our foundations and restoring our competitiveness.

Concretely, that means three things: one, restoring commercial momentum and improving execution discipline; second, simplifying our organization and reducing complexity; and third, investing in critical capabilities, in our people and our systems. Three months on, the work is underway across the group, and I will come back shortly to some of the first concrete changes we have made.

The transformation will take time, there is no doubt, but our teams are moving with urgency, and we are where we expect it to be at this stage, that's what I would say today. Our Fiscal '26 results support this.

We finished the year well with organic growth ahead of expectations, and today we confirm our outlook for Fiscal '27. Our priorities are very clear, and we are focused on delivering what we committed to.

Now, let me turn to Fiscal '26 in detail. As you can see, revenue was €24 billion with organic growth of +2%.

This was above our latest guidance, reflecting a stronger-than-expected fourth quarter. The underlying operating margin was 3.4% at the upper end of our expected range.

We also made progress on our commercial indicators: development reached 7.7% of revenue and client retention was 94.4%. What I would say is the direction is encouraging, although retention remains below where we want to be, and we need to sustain improvement over time.

We maintained financial discipline through the reset. Free cash flow was €379 million.

Leverage ended the year at 2.4 times, better than the level of around 2.6 times anticipated in July at the time of the investor update. Sébastien will come back to these elements in more detail.

The proposed dividend of €1.74 per share is in line with our capital allocation policy. Our focus now is to improve, as I said, retention, execute our new contract mobilization well, and continue to raising execution standards across the group.

Moving to Shift and Grow, right, Shift and Grow 2030, it's been three months since our investor update, as I said, we're moving forward as planned, and Shift and Grow 2030 is now being translated into concrete actions across the group. We know what we need to do: get closer to our clients, be more competitive, faster in our decisions, and more consistent in our execution.

None of this is conceptually complicated, we know that, but it's demanding, and it requires disciplined execution every day, contract by contract and site by site. Now, let me give you one example under each priority.

On growth, the new account management model that we talked about back in July is in place for our top 200 clients. Each account now has one named owner accountable for retention, for growth, and financial performance.

In North America, in the U.S. Education segment, I have absolutely seen that change firsthand.

The new leadership team has restored a level of focus and an intensity around retention that frankly we had lost over time. They're getting closer to every critical account, mobilizing the right people well ahead of renewal decisions.

They've done systematic fresh-eyes review on all critical accounts at an accelerated pace. It's still early, I know that, but we are beginning to see better outcomes on renewals.

On simplification now, restructuring actions are underway in every region. In the U.S., each segment has removed between one and three organizational layers, bringing segment CEOs closer to frontline operations and shortening decision paths.

The work continues. This is not, as you can imagine, a one-time initiative.

Simplification remains a core discipline and will continue to remove complexity wherever it slows execution or creates distance from our operations. Finally, on performance culture, we have acted on the leadership review, starting in North America.

We have renewed around two-thirds of the leadership team, and the level immediately below combining internal promotions on one side with selective external hires. We have also extended the review across all levels, from operational leaders to the senior leadership team in each segment, giving us a much clearer view of where we have strong talent and where capabilities need to be strengthened.

I have been clear with our leaders: performance must be differentiated, and decisions on roles, progression, and reward must reflect results. Technology supports all three priorities.

In Fiscal '26, our focus was on making the right choices before scaling investment. We introduced much stricter go/no-go discipline and concentrated resources on the core systems and data capabilities that matter most to our competitiveness.

Deployment will accelerate from Fiscal '27, in line with the roadmap presented in July. What matters now, of course, is to keep the pace and make these changes stick across every business.

This is a real transformation of the company, and it requires a lot of work. Now, Fiscal '27 remains the second year of the rebuilding phase.

We'll continue to strengthen capabilities, simplify the organization, and raise execution standards. The benefits should build progressively, with a more visible acceleration from Fiscal '28.

The actions I have just described are the core of Shift and Grow. We are contemplating them with targeted portfolio moves, each with a clear strategic rationale.

For Entegra, the objective is to build greater procurement scale and expertise. This is an important engine of competitiveness and profitability for our own operations, as well as a gross platform with third-party clients.

Kadence and Prestige Purchasing strengthen that platform in Europe. In food services, Europe is a region where Sodexo has deep roots, but where our positions are uneven.

Menü 2000 is a great example of the type of bolt-on we are looking for. Germany is a priority market where we want to regain ground, and particularly in the corporate segment.

Menü 2000 brings an established position with SMEs, as well as a proven operating model built around the central production unit, its own logistics fleet, and strong culinary expertise. Menü 2000 will retain its independent structure, that's for sure.

We will preserve the local expertise and the client proximity behind its success, but we'll use Sodexo scale selectively where it creates value. This limits complexity and management distraction.

We are also actively managing the other side of the portfolio. In July, we sold Active Global in Asia, the remaining part of our former home care activities, which we decided to exit in '23, if you remember, as it was not core to Sodexo.

Now, let me be clear. M&A is not an objective in itself, not now.

We already have a significant transformation underway, we want to be careful about adding complexity. Our focus is on bolt-ons that support the organic plan and are manageable for the business.

Any further transaction will need to meet that test and deliver the right returns. Now, I'll hand over to Sébastien to take you through the financial performance.

Over to you, Sébastien.

Thank you, Thierry, and good morning, everyone. Revenue was close to €24 billion, organic growth was 2% with a stronger fourth quarter at 2.6%.

Looking at the full-year bridge, pricing contributed approximately 2.4%, like-for-like volumes around 0.6%, and net new business was around -0.3%. The North American contract reclassification reduced group growth by around 70 basis points over the year.

The stronger fourth quarter reflected strong activity at Sodexo Live in Australia and Latin America and additional client projects in Europe. Some of the downside risks included in our forecast also did not materialize.

It was a better finish to the year, but this is not the starting run rate for fiscal year '27. In the first quarter, we will face the timing of contract exits and openings.

Meta is also still ramping up. We'll also continue to carry a headwind of around 100 basis points from the North American contract reclassification, broadly in line with Q4, and this impact will drop out in January.

We therefore expect growth to start below the full-year range of our guidance and build progressively through the year. Turning to margin.

Underlying operating profit was €810 million, and the margin was 3.4%, down 130 basis points. The bridge has three main components.

First, around 50 basis points related to the review of the contracts and assets. This covered areas such bad debt, litigation, onerous contracts, and decisions to rationalize certain assets and facilities.

The review was largely completed in the first half when most of the contract-related provisions were recognized. The second-half impact was more limited, with no new broad category of risk identified.

Our Fiscal '27 outlook does not assume a repeat of these charges, although we will continue to assess contracts and risk with the same level of rigor. Second, higher operating expenses for commercial capabilities, supply chain, and technology reduced the margin by around 30 basis points.

The impact was broadly evenly split across the three areas, and as planned, spending increased in the second half as deployment accelerated. On commercial capabilities, we said in July that the investment would represent around €100 million of incremental annual operating costs once fully deployed.

Fiscal '26 included only a partial impact as hiring took place progressively during the year. Spending will build further in Fiscal '27 as these hires annualize and the remaining roles are filled.

Technology programs were also still at an early stage, and the €500 to €600 million plan for technology and data is a cumulative investment through Fiscal 2030, and most of it remains to be deployed. Investment will accelerate from Fiscal '27 in line with the phasing presented in July.

The third and final component, around 50 basis points, came from operations. This reflects underperformance across parts of the portfolio.

It also includes a tougher comparison in the second half, as the prior-year period benefited from a non-recurring indirect tax item in rest of the world. Improving operational performance is our major priority.

As we become more competitive commercially, rigorous execution is critical to protect contract economics. Let me briefly close the operating review with our regional performance.

In North America, organic growth was -1% for the year, with a trend that improved in the second half as the impact of prior contract exits started to fade. Organic growth was broadly flat in the second half, including a headwind of around 220 basis points from the contract reclassification.

For Fiscal '27, we expect North America to return to positive organic growth. Europe grew organically by 2.1%, while rest of the world delivered a particularly strong 9.7% organic growth.

On margin, North America recorded the largest decline, reflecting the three factors I've just discussed. In Europe, the decrease mainly reflected charges from the contract and asset review.

In the rest of the world, the decline was more pronounced in the second half, and this largely reflected a tougher comparison, as I just mentioned, together with accelerated transformation investment, including the ERP pilot in India. You will find the detailed Q4 performance and the full breakdown by segment and region in the appendix.

That covers the operating performance. Moving below underlying operating profit, other operating income and expenses represented a net expense of €290 million.

The largest component was €216 million of restructuring costs linked to organizational simplification, workforce transformation, and the expansion of shared services. These costs were partly offset by the disposal gain on Active Global.

The restructuring charge was higher than discussed in July, mainly because the provisions related to the reorganization projects announced in France this summer were recognized earlier than initially expected. This changes the timing of recognition, but not the overall size of the program.

For Fiscal '27, we expect other operating income and expenses to represent a net expense of around €240 million, including approximately €190 million of restructuring costs. Together with €216 million recognized in Fiscal '26, this keeps the cumulative restructuring charge broadly in line with the €400 million envelope we announced in July.

The cash profile of restructuring costs is more gradual. Cash outflows were around €100 million in Fiscal '26, and at this stage, we expect most of the remaining cash impact in Fiscal '27, with a residual amount in Fiscal '28.

Net financial expense increased from €88 million to €137 million. This is mainly due to the full-year impact of the U.S.

dollar bond issued in May 2025. For Fiscal '27, we expect around €190 million, reflecting the €1.1 billion bond issuance completed in September and fewer favorable one-off financial items compared to Fiscal '26.

The effective tax rate was 23.4%, below the level of around 26% we had expected, mainly due to the geographic food profit mix, including the Active Global disposal gain in Singapore. Group net profit was €304 million, and underlying net profit was €508 million.

Now, turning to cash. Operating cash flow was €1.1 billion, and free cash flow was positive at €379 million.

Working capital contributed €75 million, supported by strong collection, together with favorable timing and one-off effects. On a more normalized basis, we continue to expect working capital to be broadly neutral.

Net capital expenditure was €604 million, or 2.5% of revenue, reflecting higher investment in contract renewal and new business. Across the cycle, we continue to expect capital expenditure of between 2.5% and 3% of revenue, mainly driven by contract-related investment at client sites, and to a lesser extent, technology.

Net debt ended the year at €2.9 billion, and leverage was 2.4 times. This was slightly better than the level of around 2.6 times discussed in July, reflecting the stronger EBITDA outcome and better working capital and the disposal of Active Global.

For Fiscal '27, we continue to expect leverage of between 2.6 and 2.8 times, reflecting continued investment in the business and higher restructuring cash outflows before deleveraging from fiscal 2028. Thierry, back to you for the outlook.

Thank you, Sébastien. For Fiscal '27, we continue to expect organic growth of between +2 and +3% and an underlying operating margin broadly in line with the 3.4% achieved in Fiscal '26.

Fiscal '27, as we said, is the second year of our rebuilding phase. As Sébastien explained very well, we expect growth to start below the full-year range and then improve progressively.

Our priorities are to improve retention, convert the pipeline that is building up, and execute the ramp-up of Meta, but also our other new contracts. On margin, the non-recurrence of the review charges and the first benefits from workforce, but also procurement actions will provide support.

This will be broadly offset by the further step-up in commercial, in technology, and supply chain operating expenses, together with startup costs on new contracts. This is why we expect the margin to remain broadly stable in Fiscal '27.

Now, regarding our Fiscal 2030 ambitions, they remain unchanged: organic growth above 5%, net new business above 3%, and underlying operating margin above 5%. What I'd say to conclude is this is a demanding transformation, but the levers are largely within our control, and we have strong assets to build on.

Confidence will come from results. Our job now is to continue to execute with discipline and deliver tangible progress quarter after quarter.

With that, Sébastien and I are now happy to take your questions. Over to you.

Operator?

Good morning. Thank you for taking my questions.

Firstly, could I just ask on retention? You delivered I think 94.4% this year.

Is this something you can build further on in FY '27? Will the initiatives you've mentioned around retention come to fruition already this year?

Then secondly, I guess adjacent comments, but could you elaborate on the comments about your improvements in the Education segment in North America? How is the turnaround going in some of the other historically more challenged areas of the business like North America Healthcare?

Together, Education and Healthcare, is FY '27 too early to see an improvement in these segments?

Okay. I'll take it, Leo.

Thank you for those two questions. I'll try to cover them.

First on the retention, 94.4%. If you look back, two comments on retention at 94.4%.

On one end, it's an improvement from the previous year. It's slightly an improvement from the previous year.

It's actually, if you go back 10 years in time, it's actually 15 years in time, it's the third-best performance. It's actually from that standpoint, in Sodexo's term, it's a reasonably encouraging result.

If you are comparing with our competitors, it's significantly below. What I mean by that is two things: one, it's an absolute priority of focus for us; and second, it would be foolish to assume that can be easily fixed.

It's a structural and deep challenge for us, okay? That's the starting point.

If I look at '26 itself, there has been a pattern, okay? I would say first, in some of the countries, the retention has been good, it's not across the board.

We have some who are not doing as well as others, we know where to focus our attention. One, for example, you mentioned it, and we mentioned it as well, is Education in America.

We've seen also a pattern in the way we've slowly improved over the year retention. Again, I think we're very clear on what we need to do, on how we will improve retention.

Now, we are being careful, I guess, in the way we are setting objectives for ourselves quarter after quarter, cuz this is a long-term trend that we are looking for here more than anything else. Expectation for '27, ambition obviously is to do better.

Now, we'll see, okay? Far so good.

It's only the beginning of the year. It's a time of mobilization.

On the Education itself, what have we done? Most of the leadership of the Education team is being renewed over the last 12 months.

We have great leaders that have joined. They've brought in talent with them.

We have also promoted talent from cuisine to reinject energy and client attention and focus. It's all about being present with clients every day.

It's all about visiting them. There has been a fabulous, I must say, fabulous mobilization from the leadership and the team.

In a kind of, I do not want to use the word war anymore in today's context, but a retention mobilization, if you like, very special in Education, where it's been about going to clients, accelerating massively the pace of the fresh-eyes report. I don't know how much you know it, but typically what we are doing is, we are driving regular in-depth interviews of a lot of the stakeholders at our clients, seeking feedback on which we have to act on.

In most of the segments in America, this process was largely discontinued over the last years. We have relaunched it and with fast pace, so that we know where to focus our attention and immediately act on the actions.

Cuz what's key, Leo, for us in retention is: one, get the feedback from the client, step one; second, understand and turn it into an action for us and then execute. That is obviously not something, it's not like you need to do it only three months before the renewal, it is throughout the life of a contract with our client.

Trust me, mobilization everywhere in the world, highly intense in America, and in particular, I took the example of Education, but I know that it's the case as well in Healthcare and in Corporate across the board.

Thank you. That's very helpful.

Could I just ask a follow-up? Thank you for that extra detail.

In terms of the leadership for North America as a high level, how close to you to appointing a permanent leader, or are you now finding it very helpful to extend the current arrangement?

I'm very happy with the way it works today. I repeat this is a business where each of the leaders today in America manage a business of €2 to €4 billion, which is the size of the other regions we manage around the world.

I'm very happy with the way it works. I myself spend 50% of my time in America, supporting them the most I can, and certainly driving alignment across the board, but they run their business and they don't need a additional layer.

That's the way I feel today. Things may change, and I'll keep you posted on whenever it is the case, but that's how it works today, and it's working great.

Thank you very much, Thierry.

You're welcome, Leo.

Thanks. Good morning, everyone.

Two questions. On the better development of 7.7% and retention of 94.4%, that obviously implies net new of around 2% at a full annualized run rate.

I'm really wondering what you're embedding in the 2027 2 to 3% organic sales growth guidance on net new and also your pricing and volume assumptions within that. Then secondly, just back on the phasing of organic sales, you've obviously reminded us about the 100 basis point accounting headwind continuing through Q1, and it sounds like net new will be skewed to the second half.

Except for those two points, do you see a similar profile during the year on OSG? Are you seeing anything at the moment from the protests in France?

Thank you.

I'll make a couple of points and Sébastien, you'll provide more details on the sequencing, pricing, and volume. Okay.

A couple of points, Jamie. One, development and retention.

First, keep in mind that if 7.7% dev, there's a significant ramp-up between Q1 and Q4 of '26, okay? Even excluding Meta, we've seen an acceleration of our development in the second half of the year, and that's the encouraging part.

It's not only an increase of the pipeline, it's also an increase of the contract signed. The retention, I covered it, I think I don't need to get back to that.

I'll let Sébastien reflect on it. What I would say on the philosophy of the way we've built our guidance for '27 is that we continue to push hard on development, and we are expecting retention to improve.

At the same time, we know that I'm being personal in the way we are looking at the projection with Sébastien, we always take a little bit of care with the way we look at retention, because as I said in my previous points, although nothing leads us to believe that that could go worse, it's something that you need to win every single day. A little bit of caution here.

Just before I let you, you want to cover the phasing first, and then I'll go back to the protests in France? You go.

Go, please.

To your question, Jamie, on the guidance for fiscal year '27, what's embedded in the 2 to 3% guidance? We factor a minimum price increase of 2%.

Then in term of net new, we are expecting a contribution between 0.5% and 1%, and this would be largely driven by Meta. For the like-for-like volumes, it's I would say neutral, neutral to maybe slightly positive.

The remaining impact is the impact of the reclassification of the large contract. This will impact, if you look at the fiscal year '27 year, around 30 to 35 basis points for the year, but it will impact 100 basis points for Q1.

Then if we look at the trend over the year, we do expect a slow start in Q1, organic growth is expected below the range, and then this will progressively improve over the year with the ramp-up of the impact of the net new.

Yeah. Thanks, Sébastien.

On the protests in France, first of all, one, obviously, as you can imagine, we're paying attention to it. We keep an eye on it.

We are headquartered in France, and so the sooner the situation stabilizes, the better. Now, having said that, first, for us, France is 12% of our business, okay?

It's not more than that. Second, our business in the high schools and where the protests are when it's not in the streets is a I would say modest size of our business, it's not as significant at group level.

What I would say overall, Jamie, is that we're not seeing I would say material impact. We are a global group.

We have presence around the world. We are obviously looking at everything happening in one place, in another, in the third, and we know that we are in a world where it's not always stable everywhere.

Far so good. Now, of course, indirectly, it's never good for an economy, but so far, no visible impact in terms of performance, Jamie.

Thank you. Can I just come back on the pricing?

2% looks very conservative given you did 2.4% last year, and inflation's going up, not down. Also the net new 0.5 to 1%, doesn't that feel a bit light given your sort of KPI suggests more like 2%?

To your second question or second remark, clearly what we said that there is a fading impact, no, between the impact of the demobilization and the ramp-up of the new contract, no? If you look at the retention from Fiscal '26, especially in Education in North America in Europe, this will really start impacting September, beginning of Q1, while again, mobilization and openings would be more progressive over the year.

On pricing, as our pricing, it's a blended rate, first of all, between food cost and labor as well. Also, we are managing our internal inflation, and our internal inflation in food is better, I would say it's lower than the external inflation.

Based on that, even if we do expect some inflationary pressure during the year, more in the second half than in the first half of the year, and because of this combination, again, of procurement mitigation and pricing, on that basis, I still confirm our guidance above 2% pricing impact for the year. This remains a appropriate assumption at this stage.

Thank you very much.

Yes, good morning. Thanks for taking my questions.

On coming back on Q1 Simon?

Simon? We don't hear you too well.

Can you speak louder? We can't hear you well.

Can you hear me better now?

Much better.

Sorry. Two questions, and the first one coming back on the Q1 organic growth outlook, it seems that you expect net new wins to be negative in the quarter.

When do you expect net new in the period to turn positive? What do you expect for volume in Q1?

Secondly, in terms of the margin outlook, any phasing to expect between H1 and H2? Thank you.

Coming back to the forecast for Q1 organic growth, as I said, we are expecting the ramp-up of net new during the year. Simon, also, what we need to keep in mind is that the business mix between Q1 fiscal '27 compared to Q4 is very different, no?

Because the weight of Education is much stronger, and we do expect a negative organic growth in Q1 in Education. At the opposite, the weight of Sodexo Live is lower in Q1 versus very strong performance and strong weight in Q4, and we don't expect Sodexo Live to remain at a double-digit organic growth at the start of the year.

This is clearly also explain why when we look at our number for Q1, we are expecting an organic growth to the start of the year slightly below the overall range of our guidance for fiscal year '27. Then on your second question on the margin outlook phasing between H1 and H2, clearly here what we see overall is that it should be if you look at the year-over-year, it should be broadly in line in term of evolution, comparison from fiscal year '27 and fiscal year '26, even if H1 margin could be slightly softer than fiscal year 20 '26, and H2 margin for fiscal '27 might be slightly stronger, because we start really getting the benefit of all the actions, especially the restructuring on the workforce.

Thank you. A very quick follow-up on coming back on net new, do you expect net new in the quarter, in the period to turn positive as of Q2 or only as of Q3?

Honestly, will not give answer on really the bridge of each driver by quarter. What's very important, it's we do expect this improvement of the net new impact over the year.

Great, thank you.

Hi, good morning. Two questions.

The first one is on GPU Entegra. It's a big part of the equation in the turnaround story.

You presented the situation at the CMD in July and what needs to be done. My question is how will we be able to assess progress?

What are the key KPIs to track, and will you present them to us? Just another question for you, Thierry, now that you've been here for a year as a CEO, what is one major initiative or change that is facing more friction that you initially anticipated?

Thank you.

I'm reflecting on your question two. What I can tell you, Estelle, I'll come back to the question one, but on the point number two is one thing that I found very interesting is that, in fact, across the organization, everybody wants to win.

The fact that we have mobilized Sodexo through Shift and Grow in a growth mindset, people love it. I think the drive, the energy that is being pushed through by everybody, the mobilization, the alignment around the strategy is working well.

We know that we will never win on strategy. We know that we will win on execution.

It's all about execution every single day, Estelle. There's no specific friction.

At the same time, a normal attention to execution every day, which is tough, it's demanding, and everywhere people are working hard. That's what I would tell you honestly.

For the rest, Shift and Grow is well understood. People are aware, they know it, they embrace it, they're aligned.

Our leaders are mobilized. I'm positive about the situation where we stand.

On your first question, which is Entegra, you're right. It's a strategic part of our business.

I've had the opportunity to say that, first of all, Estelle, we've presented the plan around Entegra and supply and the way we were aligning both Entegra and supply to really build an ambitious GPU, serving the market, but also Sodexo, leveraging scales on both sides, has been presented to the investor update, obviously, we have an action plan, and it's executing in the field every day. It takes a bit of time to roll it out, because it's a real transformation for the organization itself, but I think it's going well.

Sébastien, my neighbor here, and I we are doing reviews of the Entegra supply integration program every month, obviously, to track the performance, but also the program we call convergence, right, that we've actually reviewed literally a few days ago, and we have a set of KPIs. Now, I'm not going to tell you, Estelle, we're going to share all the KPIs, but certainly we do, and at some point in time, we'll provide you with some update on how things are progressing.

It's a strong engine. I'm pretty happy with the way it's progressing.

The second thing I would say, Estelle, is that we have developed a program, transformation program called TOM, which defines our operating model and align our supply machine to this operating model, and that is also with savings associated with it, which are reflected in Shift and Grow projection. Let's face it, we will need the deliverables of Entegra to deliver our ambition for Shift and Grow 2030.

It's on track, so far so good. We'll keep you posted sometimes.

Thank you.

Hi, good morning. I have two, please.

Firstly, on the contracts and assets review now that you've completed it, I think the total non-cash charges have reached 120 million. Can you confirm that it's mostly complete?

Are you able to tell us now what's the total revenue attached to these contracts for which you've had to take provisions? Then secondly, on assessing the organic growth from here, and you make very fair points that 2.6%, which is the Q4 exit rate, if you want, it really shouldn't be the starting point because of the mix.

I've done exactly that. I've taken your organic growth by segment in Q4, and I've re-weighted it for the revenue business mix of a normal Q1.

What it spits out is 1.5%. Is that the starting point for Q1?

That's still with slightly positive net new business in the last months of the year. You seem to be saying there's more losses that will incrementally hit us before some of the wins start ramping up.

Really trying to zero in on Q1, is it 1.5% with downside, please?

Yeah. Okay.

I'll take the beginning, Jaafar. I think on the first point, the contract and asset review, as we said, the best part of the work was done back in April.

Was it April? In March.

March, yes. Back in March, couple of adjustments, but I would say now we're back to business as usual, okay?

It's not the same. There was a need for this review.

Now, it's just ongoing process, where we review the level of risks every quarter and take actions based on this. This is not in a context of a discontinued process, if you like.

It's just back to normal discipline in the process. The total revenue related to this contracts, I cannot tell you the amount, but it's not significant.

Interestingly enough, Jaafar, those risks were not coming from the largest account or largest contract, necessarily. Sometimes those are the one that are smaller in size, where we've had not enough attention to it.

All I can tell you is this is possibly less of the total revenue than what you would have in mind, I guess. For the second one, you take it, Sébastien?

Again, as I said, I don't think that really the performance of Q4 is really a good proxy, no, for the forecast of Q1. Probably better to look at Q3, no, and the mix by segment.

For Q1, we don't specially expect a negative net new contribution in Q1, no? As I mentioned before, it will be a progressive ramp-up during the year.

Then, as I mentioned, you have the phasing of the openings and the closing, no? This phasing is less supportive than in Q4.

Q4 benefited by again, as we said, some events in Sodexo Live. Overall, if you look at the trend, again, by region, by segment, as I said, Q1 organic growth should be slightly below the range of the year.

Thank you.

Good morning. Thank you very much for taking my questions.

First, I wanted to clarify on net financial expenses. Obviously, you've guided that to go up a bit in '27.

If we look at slide 21 of your deck, there's €800 million of bonds maturing in April 2027. I just wanted to confirm if the maturity and refinancing of these is already part of the guide.

Second question on capital allocation, Thierry, on slide 7, you mentioned some deals you've done. There's a couple that was completed in early '27.

I just wonder whether you could give a bit color of what's in the pipeline, what are you looking at in terms of M&A in '27, and some of these deals? Thank you.

Okay. Maybe I can take the one on M&A.

I will take the one on the financing.

Okay. On M&A, I don't think you should expect anything material.

As we said, we are doing bolt-ons within the budget that we'll allocate to ourselves in a given year. We are being consciously carefully the way we are going after M&A now, not by conviction, but more just by the fact that this is part of the way we structure Shift and Grow 2030, where we are saying '26, '27 is about structural transformation and therefore, more focusing on our back-to-basics and on our improvements and discipline.

M&As, specific bolt-on, tuck-ins when justified in a given market, but nothing of material to be expected for the foreseeable future.

Okay. To your first question, yes, as we raised €1.1 billion in September, and this was really the anticipation of the repayment of the €800 million bond that will mature in April.

The cost of that is fully embedded in our guidance of €190 million in term of financial expense for fiscal year '27.

Very clear. Thank you.

Thank you. Good morning, everyone.

Just the first question. You spoke about 0.5 to 1% net new, of which Meta's a big chunk of it.

I'm just wondering, when you're looking at your pipeline on a gross level, which industry segments are healthy, which industry segments in terms of bids maybe less healthy, or you less focused on? Then second question, Thierry, you spoke about kind of employees being very motivated, etc.

Have you done any internal surveys in terms of the employee mood, especially at the head office, given restructuring, and any points you'd like to pull out if you have, in terms of culture, motivation, etc.? Thanks.

Jarrod, thanks for the two questions. The first one, the pipeline, right?

Your first question is around the pipeline. I believe, today, I'm scanning through my head, I believe pretty much every single of our segments are showing pipeline increase, okay?

By virtue of extreme focus on building it up, being proactive, I think we've seen it. Now, what are the one that are the strongest?

We have an increased volume of pipeline from large accounts in the corporate world, okay? We have a strong pipeline building up in the healthcare world, and I would say also strong in the sports and leisure world.

I think, frankly, looking at the pipeline, opportunities are here, significant acceleration. Again, you will notice my caution.

It's great pipeline, you want to turn it into deals, that's what we are working on. The point number two, which is about the question of the motivation of the employees and survey and so on.

For sure, we're doing survey. We are doing survey regularly.

For example, in the context of Shift and Grow, to make sure that our managers understand and feel part of Shift and Grow, but also just to make sure that they are aligned and are completely on board with what we are doing. Now, in a few hours from now, I will handle a call, there's a forum of several hundred leaders across the organization, where I will share with them everything we discuss now.

We do that regularly. We have constant interaction.

We have also surveys and feedback, for sure. We're very aware that whenever we have difficult discussions or moment that are not easy to handle, like some restructuring activities going on in some countries, then we are handling it with the best care and the best attention to most sense of respect, for sure.

That's the Sodexo way of handling things. I feel that the level of motivation is certainly high, and the energy and the confidence in the future is really comforting at the moment at Sodexo.

Thanks very much.

Yes, good morning. Regarding the Meta contract ramp-up, given its size and the fact that it's relatively new area, have you identified any specific execution risk in delivering the required service quality?

When should the contract reach a normalized margin? The second question, and more generally, could you please share any comments on your pipeline in the data center space?

Thank you.

Okay. The first one is Meta.

We started I believe the transition sometime in June timeframe, I believe. It's a transition that takes several weeks and months.

We are still in the middle of it. It involves many, many, many little projects, if you like, huh?

We have 130 sites across 30 countries. There's thousands and thousands of people involved every day.

We obviously, as you can imagine, we have a I would say steerco at group level, and we're exchanging with the Meta team regularly to stay focused and aware of where we are. We have the direct connection with the executive of Meta as well to make sure that whenever there is a need, they can reach out to us and myself in particular.

Far so good. We are progressing well.

It's still early stage, but it's progressing frankly well, I would say positive. When contracts should normalize margin, Sébastien?

During the second half, second half of the year. Right.

Yeah. Then

for the question on the pipeline in data centers. Yes.

What we've done on this in this field, first of all, data centers, we already work with some of our clients around data centers in several of our countries, in particular in America, for sure. There's a growing pipeline, that's for sure.

We have also built our own offering around data center, our solution, that's called Sodexo Edge, that we are deploying around the world. What we are doing here, Johanna, is that we are leveraging two things: one, our very, very deep expertise in the remote site management, right, the fact that we are managing and we've been managing for decades remote site, whether it's in the mining, in the oil industries, and they are very much relevant in the phase of construction of the data centers.

Of course, we are leveraging the second aspect, which is the strength of our portfolio of clients in the tech industry. Obviously, one client, you know the name, we just mentioned it, there's others with whom we are working.

We are expanding. We've built a specific team to go after this market of data centers.

We today operate north of 100 data centers, but the potential of growth is significant. We're on it.

We'll keep you posted as we grow as well.

Thank you.

Of course. Okay.

Thank you. Thank you everyone for your questions.

As you have seen, we have a clear plan. The actions are underway across the group.

What really matters, and believe me, this is an absolute paranoid obsession on our side, focused on disciplined execution. Turning these actions into results, that's our focus for Fiscal '27, for sure.

We look forward to updating you as the year progresses. Thank you for joining us.

Have a great day.