UFS User Group April 18, 2017 Our call will begin shortly *6 will mute your line #6 to unmute your line Hello Everyone.

User Feedback & Open Forum UFS Update (Jill Helms) How are you Leveraging AR Reports (Bridget Jozwiak) Monthly Close Calendar(Wendy Cano) User Feedback & Open Forum Welcome

What’s New on UFS Launch Site UFS Newsletter is no longer emailed to users Launch Site Communication Tab eBulletin COMING SOON – Monthly Close Conversion tab

Accounts Receivable Reports Usage AR Dashboard in E=nterprise Analysis AR Reporting in UFS UFS User Group Call April 18, 2017 Conference line: 1 866-291-8209 Conference code: 235-495-4038

AR Reports in BRIO retired this period AR Dashboard in E=nterprise Analysis is replacing the BRIO Accounts Receivable reports for: AR Aging Reports Bad Debt Reports Days Sales Outstanding Reports Credit Card Reports Credit Memo Reports

AR Reporting in UFS Feedback received: UFS Users/Unit level employees not the target audience for AR Dashboard

AR Reporting in UFS

Monthly Calendar Conversion UFS User Group April 2017

What is the Monthly Calendar Conversion? The Monthly Calendar Conversion (MCC) is a key initiative within our Finance transformation as part of Ambition 2025. The initiative will transition our North American business from the current 5-4-4 financial calendar to a monthly financial calendar, aligning our region with the rest of Group and eventually making the close process easier on our segments and our Finance teams by Eliminating double work Providing a single view of the business across the organization Removing the challenges of our current accounting calendar’s 53rd week Better aligning with the needs of our Clients We will transition to the monthly financial calendar in August.

What’s the Change? Period end …to a final period end that could be any day of the week We will move from final period end consistently being on a Friday…

Why Are We Converting to a Monthly Calendar? Improvement Objectives 1 2 3 North America is the only region not on monthly close Distribute effort over the period Build more real time financials Move to a monthly calendar close by end of FY17 Currently, with a 5-4-4 calendar we spend a lot of time reconciling reports so our 5-4-4 numbers make sense to our Clients and to Group (Most Clients and Group have been on a monthly financial cycle all along). Benefits of MCC: No more reconciliation needed between 5-4-4 and monthly financials Better for our Clients as we match their billing cycle Smoother financial close since cost centers will be transmitting throughout the month (Financial close becomes less about an event and more about a daily mindset)

Stepping into Monthly Calendar Conversion Aligned with global colleagues and clients No more reconciliation between 5-4-4 and monthly close Monthly inventory Monthly billing Thinking Daily is new norm Financial close no longer an event System Changes UFS—additional week ending date for month end E=Vision—features two reporting views (month to date and weekly view) New Terminology Deadline Changes New financial close timeline (first four business days of the month) E=Business Review timeline changes New Budgeting and forecasting deadlines Behavior Changes Think Daily Do Now Adjust our pattern of management to accommodate new timelines STORY I’ll walk you through the journey of how we’ll step into the Monthly Calendar Conversion by using the analogy of transitioning to a brand new floor in a building…. Currently, we’re on the Ground Floor where we operate using a 5-4-4 calendar. On this floor we’re spending a lot of time reconciling reports so our 5-4-4 numbers make sense to our clients and our colleagues in Group who process financials on a monthly cycle. We’re also spending an enormous amount of time conducting weekly inventory, but we’re making progress since many of you have begun transitioning to Monthly Inventory, the standard for Sodexo. So that’s where we’re at currently, but it’s now time to step up and make the adjustments necessary to make our way to the top floor, Monthly Calendar Conversion. There, we will operate on a monthly schedule and that will mean: no more reconciliation between 5-4-4 and monthly close good news for our clients who prefer to be on a monthly billing cycle And a smoother financial close since employees will have adopted the Think Daily mindset and will be transmitting throughout the month. So how will be get from 5-4-4 to Monthly? First, we learn to Think Daily – transmit in UFS as soon as information is available (you can even transmit multiple times per day) and conduct more frequent reviews of unit financials to make quicker and better business decisions (the time you save from moving from weekly to monthly inventory could be dedicated to reviewing financials) The next step is to understand the new deadlines. This includes: A new financial close timeline (financial close occurs the first four business days of the month) A New E=Business Review timeline (adjustments will be made to reflect the new monthly calendar schedule) And new budgeting and forecasting deadlines From there, you’ll head to the next floor where you’ll learn about the system changes. This includes: An additional week ending date in UFS for the last day of the month Two reporting views in E=Vision (a month to date view and a weekly view which is essential for our operators) And, you’ll also see new terminology (BD = Business Day) That covers the three areas that will enable you to step into the Monthly Calendar Conversion where Sodexo aligns with it’s clients, removes the challenge of reconciling reports and joins the rest of our global organization in operating on a monthly cycle. 5-4-4 Calendar Reconciling Reports Weekly Inventory Billing cycle not favored by clients START

5-4-4 Calendar – Ground Floor Reconciling Reports Too much time spent reconciling, so our 5-4-4 numbers make sense to our Clients and Group Weekly Inventory Creates non-value added work Less time for other responsibilities Financial Close is an Event Time spent reviewing period numbers Journal entry requests for corrections or missing information Billing Cycle Not Favored By Clients Currently not aligned with billing cycle of many of our Clients

Behavior Changes – Starting Our Climb Think Daily Have a daily mindset to spread the work out evenly throughout the period Make Close less of an event by doing what you can daily, which will help prepare you for a smooth transition to a monthly calendar close Do Now Transmit in UFS as soon as information is available vs. waiting until the end of the week More daily and timely UFS transmissions enable more real time data Conduct more frequent reviews of unit financials to catch errors earlier in the period Ability to make more timely business decisions Reduce your effort during Close Adjust Our Pattern of Management to Accommodate New Timelines Understand the new timelines and plan accordingly

Behavior Changes – Starting Our Climb Transmitting daily and timely in UFS Cash Billing (Invoices): Contractual1 X Billing (Invoices): Non-Contractual1 Billing Memos Accounts Payable: Manual Invoices Accounts Payable: UIPS Invoices Transfers Transmit Daily If module available in your Segment Warehouse Vending Linen Master OSI Statistics Petty Cash Resident Vending Transmit Weekly Inventory2 Transmit Monthly X AR Invoice Payments X X You can transmit daily modules multiple times per day, if desired 1If invoice is prepared 2Units may perform additional inventory counts for operational purposes

Behavior Changes – Starting Our Climb Reviewing Financials Frequently Examples Of What To Review In Financials Daily Financial Activity View (DFAV) AP Register AR Dashboard Where? E=Vision E=nterprise Analysis When? Daily Why? Review for accuracy and report or request adjustments over the threshold prior to period end Identify paid invoices that require further attention Provide input for capitalization Collect outstanding invoices What to review? Re-classes Labor expense re-classes between cost centers within the Client Postings from other systems: PCAs, labor expense, expense reports, journal entries Paid vendor invoices Capitalization Audit and Collections Review financials frequently to catch errors earlier and better manage the business

Deadline Changes – Continuing Our Ascent New Financial Close Timeline New financial close timeline (first four business days of the month) Business Day 1 (BD+1) through Business Day 4 (BD+4) Final statements and invoices available on Day 5 (D+5) – May be a Saturday All segments will have the same financial cutoff of Friday Segments that currently cut off on Thursdays will move to Fridays in week ending 8/11/17 and this week will include eight days of sales and expenses E=Business Review Timeline Changes Adjustments to reflect the new monthly calendar schedule New Budgeting and Forecasting Deadlines To be communicated by Segment Finance Final Month End UFS Transmission Deadline One business day after the last day of the month (BD+1) by 11:45 p.m. EST

Deadline Changes – Continuing Our Ascent Segments that currently cut off on Thursdays will move to Friday this week. Week ending 8/11 will include 8 days of sales and expenses. Go-Live Weekend

System Changes – We’re Almost to the Top! Timeline UFS – Additional Week Ending Date for Month End All UFS versions will use a Monthly Calendar, which will include an additional week end for the last day of the month Other changes in UFS include capturing an activity date with the week ending date where possible TJEs and Cash will use activity date AP transmittals will use run date (date when expense was processed) E=Vision – Features Two Reporting Views EDW will create two views in the E=Vision DFAV (Daily Financial Activity View) Financial view for month-to-date Operational weekly view (Saturday – Friday), rolling six weeks of activity New “cuts” of data in EssBase to align with the weeks in the monthly fiscal calendar EssBase will use time dimensions for month and week 19

System Changes – We’re Almost to the Top! Timeline SAP Calculations Depreciation will now calculate on a daily basis DSO calculation will change to monthly New Automated Payroll Accrual for US Cost Centers Kronos will provide a file for both weekly and bi-weekly payroll cycles Canada’s automated payroll accrual will be updated for the monthly calendar SCAS (Sodexo Contract Accounting System) Weekly calculations will now occur on a daily basis Period calculations will occur on a monthly basis 20

Monthly Calendar Conversion – Successful Climb! Timeline On Same Timeline as Global Colleagues and Clients Joining many of our clients and the rest of our global organization in operating on a monthly cycle No More Reconciliation Between 5-4-4 and Monthly Close Eliminating extra non-value added work Aligned with Monthly Inventory Transition from Weekly Inventory to Monthly Inventory counts (or align to billing cycles) Flexibility to take inventory up to four days prior to month end (exceptions P6 & P12 - must be done on the last day of month) Ability to Bill Monthly Clients will continue to be billed based on contract terms. Those Clients impacted by the move to monthly will receive a letter notifying them of the change. Thinking daily is new norm New mindset becomes routine Financial close no longer an event Requires less effort and time dedicated all at once 21

Timeline Timeline 22 Begin communications (i.e., webinars) Client letters Go-Live! Command Center help desk Roll out training Develop training E=Vision updates in production UFS pilot Continue training Go-Live plan execution Ongoing support Capture learning/ post launch survey April 2017 May 2017 June 2017 July 2017 Aug. 2017 Sept. 2017 and beyond 22

Next steps What you should be doing Where to Find Help & Support Remember to Think Daily and spread the work more evenly throughout the period by… Transmitting in UFS as soon as information is available   Frequently reviewing Unit financials to catch errors prior to Close No longer submitting certain journal entry requests less than $2,500 Where to Find Help & Support Reference the Job Aids found on the Transversal Finance SodexoNet Page for on-the-job support Check out the FAQs on the Transversal Finance SodexoNet Page Send your outstanding questions to Transversal Finance Mailbox Contact the USA BSC Client Services for your segment B&I Market Campus Services School Services Healthcare Market Canada 

Questions?

Application Feedback Group Open Forum What is MOST important Service Request / Defect item to you and your users? Key function of this group. Open discussion with IT support. Prioritize open items page 25

Defects/Bugs and Fixes Unit Financial System User Group Provide & Gather Feedback Training Defects/Bugs and Fixes Future Enhancements Continue to review the homepage for valuable resources and updated communications. RECRUIT, ENGAGE, DRIVE TRAINING, AND SHAPE THE FUTURE!!! UFS User Group, established 2010