FY18 Controller Call Series The presentation will begin momentarily October 2017

Safety Moment (Denise White) October Close Calendar and Payroll Accruals (Wendy Cano) DRIVE Update (Sue Lombardi, Sandra Ingrando) Questions Unit Controller Network Call Series, October 2017

Safety Moment: Halloween Safety

Halloween Safety The excitement of Halloween night can cause children to forget to be careful. There is no "trick" to making Halloween a real treat for the entire family. The major dangers are not from witches or goblins, but from falls and pedestrian/car crashes. Take precautions and talk to your children about safety on Halloween.   Motorists: Watch for children darting out from between parked cars Watch for children walking on roadways, medians and curbs Enter and exit driveways and alleys carefully At twilight and after dark, watch for children in dark clothing Costume Design: Only fire-retardant materials should be used for costumes Costumes should be loose so warm clothes can be worn underneath Costumes should not be so long that they are a tripping hazard (Falls are the leading cause of unintentional injuries on Halloween.) If children are allowed out after dark, costumes should include Strips of reflective tape

Halloween Safety While Out Trick or Treating – Remind Your Children   While Out Trick or Treating – Remind Your Children Do not enter homes or apartments without adult supervision Walk, do not run, from house to house. Do not cross yards and lawns where unseen objects or the uneven terrain can present tripping hazards Walk on sidewalks, not in the street Walk on the left side of the road, facing traffic if there are no sidewalks

Monthly Calendar Conversion Unit Controller Calls October 2017

October Fiori Sales Posting and Accrual Fiori invoices will post in SAP on the invoice “Settlement To” date. At month-end, Fiori invoices finalized and approved by 5:00 pm ET on BD+2 will post on the invoice “Settlement To” date. The Sales Accrual will calculate from the last posted “Settlement To” date to the last day of the month. Accrual rate will be calculated by referencing the last posted invoice for the previous settlement period and divided by the number of days in the billing cycle. Weekly invoice cycles: Weekly Fri-Thu:                10/20 – 10/26 If finalized and approved by BD+2, invoice will post in SAP to 10/26 (Period 2, FY18). Sales Accrual will post 5 days (10/27 – 10/31) in SAP on Thursday, 11/2. Posted to the DFAV on Friday, 11/3, in week ending 10/31 (Period 2, FY18). Weekly Sat-Fri:                 10/21 – 10/27 If finalized and approved by BD+2, invoice will post in SAP to 10/27 (Period 2, FY18). Sales Accrual will post 4 days (10/28 – 10/31) in SAP on Thursday, 11/2.

October Payroll Posting and Accrual - US On Tuesday, 10/31, the normal pay cycles will post in SAP to 10/27. Weekly Fri-Thu:                10/20 – 10/26 Weekly Sat-Fri:                 10/21 – 10/27 Bi-Weekly Fri-Thu:           10/13 – 10/26 Bi-Weekly Sat-Fri:            10/14 – 10/27 Posted to the DFAV on Wednesday, 11/1, in week ending 10/27 (Period 2, FY18). On Thursday, 11/2 at noon, Kronos will pull the following days: Weekly Fri-Thu:                10/27 – 10/31 (5 days) Weekly Sat-Fri:                 10/28 – 10/31 (4 days) Bi-Weekly Fri-Thu:           10/27 – 10/31 (5 days) Bi-Weekly Sat-Fri:            10/28 – 10/31 (4 days) Accrual will post for the above days in SAP Thursday, 11/2 (BD+2). Posted to the DFAV on Friday, 11/3, in week ending 10/31 (Period 2, FY18).

Taxes and Benefits Accrual - US Type Category Data Source Calculation of Amount Exceptions Where is Accrual Posted Debit Credit Hourly Non-"Union Vacation" Wages Kronos N/A CTM Cost Centers 6410.0110 4081.5200 Non-"Union Vacation" Benefits Calculation 11% of Hourly Wages 6450.1110 Union Vacation Wages 6410.0115 Union Vacation Benefits 6450.0115 Workers Comp 2.72% of Hourly Wages 9999 Hazard Code 6162.0001 7543.0001 Admin 6410.1110 15% of Admin Wages 6450.1140 2.72% of Admin Wages 7543.1001

October Salary Payroll Posting and Accruals - Canada On Tuesday, 10/31, the normal weekly payroll accrual will post in SAP to 10/27. Bi-Weekly (Salary) Sat-Fri: 10/21 – 10/27 (7 days) Posted to the DFAV on Wednesday, 11/1, in week ending 10/27 (Period 2, FY18). On Thursday, 11/2, at 2:30pm, CAP Payroll will pull the following days: Bi-Weekly (Salary) Sat-Fri: 10/28 – 10/31 (4 days) Accrual will post for the above days in SAP Thursday, 11/2 (BD+2). Posted to the DFAV on Friday, 11/3, in week ending 10/31 (Period 2, FY18). In week ending 11/3, both payroll accruals will reverse (11 days). On Wednesday, 11/1, the normal Salary pay cycle will post in SAP to 11/3. Bi-Weekly (Salary) Sat-Fri: 10/21 – 11/3 Posted to the DFAV on Thursday, 11/2, in week ending 11/3 (Period 3, FY18).

October Hourly Payroll Posting and Accruals - Canada On Wednesday, 11/1, the previous weekly payroll accrual will reverse 14 days to 10/27. On Tuesday, 10/31, the normal weekly payroll accrual will post 7 days to 10/27. On Tuesday, 10/31, the normal hourly pay cycle will post in SAP to 10/27. Bi-Weekly (Hourly) Sat-Fri: 10/7 – 10/20 Posted to the DFAV on Wednesday, 11/1, in week ending 10/27 (Period 2, FY18). On Thursday, 11/2 at 2:30pm, CAP Payroll will pull the following days: Bi-Weekly (Hourly) Sat-Fri: 10/28 – 10/31 (4 days) Accrual will post for the above days in SAP Thursday, 11/2 (BD+2). Posted to the DFAV on Friday, 11/3, in week ending 10/31 (Period 2, FY18). In week ending 11/3, both payroll accruals will reverse (11 days). On Tuesday, 11/7, the normal weekly payroll accrual will post in SAP to 11/3. Bi-Weekly (Hourly) Sat-Fri: 10/21 – 11/3 (14 days) Posted to the DFAV on Wednesday, 11/8, in week ending 11/3 (Period 3, FY18).

October’s Close Week BD+2 Finalize Edits in Kronos by 12:00 pm ET Finalize and Approve Client Invoice in Fiori by 5:00 pm ET

UFS Communication and Resources Click to access MCC Tab Close Calendar - Fiscal Year 2017  ♦  Close Calendar - Fiscal Year 2018  ♦ Electronic AP Invoice Matrix ♦ MCC Resources & Support: August 2017 Important Dates Calendar September 2017 Important Dates Calendar October 2017 Important Dates Calendar Monthly Calendar Conversion: FAQs Visit the Monthly Calendar Conversion (MCC) page on Sodexo Net Send your questions to the Transversal Finance Communications Mailbox

DRIVE Order Guide Optimization Kick-off with Unit Controllers October 10, 2017

DRIVE Overview Order Guide Optimization Next Steps

Projects Directly Aligned by Regional Priority 1. Region Priorities Projects Directly Aligned by Regional Priority New Business Mobilization / Deployment Set up new units with best practices on Labor and Food. DRIVE – Site Readiness and Segment Alignment DRIVE – Order Guide Optimization DRIVE Technology Solutions Temporary Labor Labor Optimization for new user populations Top 200 Units Canada Conversion to Kronos V6.3 SSF – Cleaning Bid Management Workbook - 2.3 Operational Excellence (OE) Retail P&L Opportunities

What is DRIVE? A global initiative to improve food performance as part of our 2025 ambition An integrated food management process based on accurate forecasts of demand and customer preferences A tool that will help accurately & efficiently monitor all food production activity A system to bring predictability to the delivery of our food services A means to reduce costs while improving customer satisfaction A way to foster innovation

How will it benefit Site Managers & Guests Deliver food services that are on trend and respond to customer insights Ensure a consistent menu, ingredients and amounts for our customers every day Enable efficient food production and service delivery Provide predictable quality and consistency of food production Drive customer and employee satisfaction Improve financial results

DRIVE’s North America Phased Approach Site Readiness: Align On-site processes to the Global DRIVE business processes 1 Menu Compliance, Planning/Forecasting, and Production (with current systems) FY 18 Focus 2 Order Guide Optimization: linking catalogs to Central menu & category assortment 3 Technology Solutions: Menu, Order, Inventory, Invoicing, Cost Center Breakout 1 2 1 3 3 1 Later 3 3 3 1 3 1 3 2 2 3 1 3 1 2 3 DRIVE/UIPS TMC/UIPS

Where Are We Now Site Readiness: The First Step Increase knowledge base and ay groundwork for future success Enhance ability to execute business process Create cost savings & efficiencies Start using learnings with Legacy Systems Training Timeline - Corporate Services, Universities, Government Agencies July 14-21 Modules 1-3: Intro to DRIVE Readiness End to end Food Management Process Every {One} Counts July 24 – Aug 18 Modules 4-5: Implement Segment Menus & Planograms Update Inventory Capture Sheets Aug 21 – Sept 8: Modules 6-7: Implement Purchase Awareness Monitor Conduct 15 Minute Counts

Site Operator Focus Areas Site Operator Pattern of Management Impact Action Checklist: Complete required assigned DRIVE Site Readiness eLearning in Ingenium Refer to the resources on the DRIVE page on Sodexo Net Implement the DRIVE Business Processes at their site utilizing their legacy systems Utilize the centralized menus (core, catering, brands) and category assortment (In the Zone) Complete menu forecasting 2 weeks in advance Report and monitor post production reporting Adjust menu forecasts and production accordingly Cleanse TMC order guide & inventory lists Activate all tools in the downloadable resources for site readiness Sue

What’s Next Order Guide Optimization Sue

How Order Guide Optimization Aligns with the Global DRIVE Process The DRIVE process will allow us in North America to achieve the full benefits of an integrated food management process. Our systems will be aligned with the DRIVE process to guarantee consistent delivery of services to customers and achievement of sustainable Gross Profit. CENTRALIZED CATEGORY & MENU MANAGEMENT LINK & LOCK SKU to RECIPE AT SITE LEVEL DEMAND PLANNING VOLUME & MIX FORECASTING AUTOMATED ORDERING LOGISTICS & DISTRIBUTION PRODUCTION & SERVICE POS INTEGRATION & POST PRODUCTION ANALYSIS THE PROCESS Menu Plan Order Receive Produce & Service Report On-Site Activities Order Guide Optimization incorporates the first two elements of the Global DRIVE business process: The optimization of the Prime Supplier order guide will be focused on including products linked to centralized segment approved menus/recipes and category assortments

How Do We Define OGO What it IS.. Process to align SKUs to central menus and category assortment A way to manage SKUs Our new norm What it ISN’T… A way to stifle creativity & innovation Standardizing menus across all regions

Order Guide Optimization Generates an average of 1% raw material cost saving on PRIME supplier spend, yielding better pricing and higher quality products, and aids in a more streamlined ordering process Provides sites with a balance of the right set of products while generating overall efficiencies Increases our ability to calculate and maximize contribution margin to value pricing for retail & catering menus Improves recipe performance and published nutrition data accuracy Increases our ability to leverage consolidated volume in negotiations with vendors Benefits of Order Guide Optimization

Criteria for Inclusion into Order Guide & Supplier Catalog 1 Linked to centralized segment approved menus, recipes and category assortment 2 High margin 3 High demand from sites 4 High purchase volume HOSPITAL

Review by Sites Will Occur on a Rolling Cycle GMs review the items to be cut. Exceptions may be requested for strong business reasons. Exception Requests: RAMs review for contracted products DMs/VPs review & approve requests as appropriate 1 Determine new reduced catalog Gather site feedback 2 4 Catalog approved by Segment prior to implementation GMs to update TMC Order Guides for cut & new products Discuss & communicate Changes with Segments Implement reduced catalog Final approved Catalogs implemented 3

Ensure Managers are implementing the DRIVE Business Processes Your Role Support your GMs & DMs through the rigorous weekly process to ensure tasks are completed on time for Order Guide Optimization Ensure Managers are implementing the DRIVE Business Processes Review the DRIVE page on SodexoNet for further information Direct questions to DRIVEsupport@Sodexo.com

Next steps On-boarding of Segment designated DRIVE leaders Recruitment of Segment champions Upcoming Order Guide Optimization training sessions VPs: week of Oct 9th DMs: week of Oct 16th GMs + : week of Oct 23rd

Appendix

Implementation will occur in Four Phases at an accelerated pace 1 November-December: Site review 2 December-January: Processing 3 January: Implement Catalog 4 April: Additional Locks Accelerated Timeline to be implemented Sites review suggested cuts in multiple rounds and request exceptions where necessary RAMs, DMs, and VPs review and approve ~1 month Results received and processed; final catalog determined Supply Chain works with distributors to communicate changes and ensure they are ready for volume shifts Items hidden in TMC Initial Locks completed with Distributors Sites can request that items be unhidden through a “fast response team” ~3 months after hide Items locked Sites can no longer get items that are identified to be cut

Illustrative Weekly Cadence of Communications Core working group meeting Review progress and address issues as the come up Weekly RAM call Final Reminders Sites that had not responded to the survey received emails reminding them to do so by Monday Monday Tuesday Wednesday Thursday Friday Previous Site Review cycle ends; New site review cycle begins Individual emails automatically sent to all sites letting them know that another review cycle has begun and they should review suggested cuts for their sites Final results for previous review cycle provided Cycle and cumulative league tables sent to VPs and CEOs Lists of individual low response rate or high exception rate sites sent to VPs and CEOs Mid-cycle reporting In-progress league tables by VP showing current response rates for the cycle sent to CEOs and VPs Reminders sent to sites Individualized emails sent to sites that have not completed the process reminding them to do so VP forum Weekly recurring call for all VPs Provided opportunity for VPs to ask questions and for team to reinforce messaging Key messages to CEOs Project team sent ~ 3 bullet points to CEOs on progress of the initiative for them to raise in their BAU Friday calls with VPs

Resources Questions? Unit Controller Network Call Materials UFS Launch site UfsAdministrator.Noram@sodexo.com DRIVE Direct questions to DRIVEsupport@Sodexo.com Monthly Calendar Conversion (MCC) Transversal Finance SodexoNet Page 33