FY17 Controller Call Series The presentation will begin momentarily June 2017

Safety Moment (Jill Helms) Kronos Analytics (Parker Williamson) AR Collections (Brad Hamman) Monthly Close Calendar (Wendy Cano) Questions Unit Controller Call June 2017

Safety Moment: Common Sense Safety

Common Sense Safety Taking safety seriously means paying attention to every part of your job and what goes on around you. Ignored hazards can result in injury. SAFETY DO Know safety rules and regulations. Pay attention to what you are doing. Treat safety as an important part of your job. Remind other workers about safety procedures. Pay attention during safety meetings and training. Ask Questions about work or procedures you do not understand. SAFETY DO NOT Do not assume safety is someone else’s job. Do not ignore safety hazards. Do not fool around or horseplay. Do not be overconfident with jobs you have done many times. Do not use equipment in ways for which it was not intended. Do not get pressured into ignoring safety procedures because of tight schedules. MOST ACCIDENTS ARE CAUSED BY A FAILURE TO USE COMMON SENSE! Safety Moment

Common Sense Safety - Careless Reasons people get careless: Complacency: Going on “auto-pilot” because you have done the job so often. Emotions: Being angry at something that happened at home or work. Fatigue: Too little sleep or too many hours at work. Not appreciating risks: Not enough training or not paying attention during training. Reckless attitude: Thinking that safety is not important or does not apply to you. Safety Moment

Kronos Analytics Update Unit Controller Calls June 2017 Kronos Analytics (Parker Williamson)- PM from Market Labor Team

Kronos Reports Use Kronos Reports to review more details about metrics shown in the Analytics Dashboard. Shows which employees will incur OT by the week’s end. Itemizes your Punch Percentage by employee. The total hours and dollars per pay code. Pay Code Summary Employee Clock Punch Percentage Approaching OT A pay code summary that factors in transfers. A detailed report of each employee’s timecard. Easy-to-read, printable schedule from the Kronos Schedule Planner Schedule by Org Simplified Time Detail Hours Grouped by Spec Labor Level

Running Reports Save favorite Report settings to use again. View your Report now. Have your Report sent to your inbox when it’s ready. Automate Reports to run for you.

Schedule Reports Choose a report frequency. STEP 1 Give your Report a unique name. STEP 2 Email to yourself and/or others. STEP 3 Choose a report frequency. STEP 4 Choose a time of day for the report to run. STEP 5 Set a start and end date.

What’s Coming Next?

https://sodexo-uat.kronos.net/wfc/navigator/logon What’s Next? 1 MAY Out of Unit Dashboard Pilot launched for RVPs, DMs and Finance Support. What this means: Interactive and intuitive visual of in-unit data, Ability to export and distribute. Ability to identify opportunities for improvement and determine action plans https://sodexo-uat.kronos.net/wfc/navigator/logon

Questions?

Credit & Collections Spring 2017 AR Collections (Brad Hamman – Dir of Credit/Collections) Spring 2017 Confidential and proprietary to Sodexo. Do not share or post without proper consent.

FSS Credit & Collections (New) SIMPLIFY Credit & Collections Q&A

1 FSS Credit & Collections

Why Create a FSS Credit & Collection Team? Align with Ambition 2025 – aggressive growth Credit risk management and using a collection tool will be critical Adopt Healthcare’s dedicated Credit & Collections team across the Enterprise Standardize policies Provide training & support Adopt Best Practices Improve AR Management Earlier detection to take action Reduce bad debt and legal fees Long-term results (years) Permanent effects Improve Cash Flow and DSO

FSS Credit & Collection Team Milestones \\\\\ FSS Credit & Collection Team Milestones Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Team Formation Go-Live with New Policies Go Live ! First Wave Hiring 1st Wave Training (build partnership with Segments) Second Wave Hiring 2nd Wave Training (building partnership with Segments) Implement Credit Management Software Application Assessments Define Configuration Pilot Full Deployment Short Term Goals: FYE 2017 Money in the Bank for FYE! Long Term Goals: Partner with Segment Finance/COE Define Key Metrics and Targets Update Polices & Procedures, conduct Training, GIA Audit Findings Communication 17

Plan Do Check Act Collections Process Plan Do Act Check Evaluate Your Open Accounts Receivable at the AR Dashboard Prioritize Collection Efforts from Largest to Smallest Determine Root Causes Identify Potential Solutions Do Strategize with team members Determine roles Develop and implement action plan Plan Do Check Act Act Identify Red flags… see something, say something Timely follow-up is key Reach out for help if needed Check Measure progress Ensure payment was received as committed (timely follow up is critical) Identify lessons learned

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Credit & Collections Review your Open Accounts Receivable frequently Review the Collection Tips and FAQs Follow the Collections process (Plan, Do, Check, Act) Document your plans in E=Business Review We want to hear from you. Please send an email to AccountsReceivable.NorAm@sodexo.com or call 1-800-828-7762 Option 2, Option 2

Credit & Collections AT-A-GLANCE Why focus on Collections? Monitoring and collecting AR helps to improve the Quality of Life for our operators by identifying and resolving issues timely – plus it just makes good business sense. You work too hard to do it for nothing! You earned it, go get it. Timely AR collections demonstrates responsible oversight for Cash Flow from all levels of management – and is a key measure of Sodexo’s financial effectiveness and success Improve cash flow = Improve Days Sales Outstanding (DSO) Operating Profit and Accounts Receivable are performance measures for everyone in the Annual Incentive Plan. Credit & Collections is part of SIMPLIFY – a campaign that highlights initiatives that improve your Quality of Life at work. Timeline June 2017 Review and Prioritize Collections (from largest to smallest invoice) Document plans in E=Business Review Perform Timely Follow Up July 2017 Review and Prioritize Collections Document plans in E=Business Review Perform Timely Follow Up August 2017 Review and Prioritize Collections Document plans in E=Business Review Perform Timely Follow Up Bank It By FYE 8/31/2017 New Standard for Managing Receivables Training and Resources We want to hear from you! Have a question or comment on Collections? Please send an email to AccountsReceivable.NorAm@sodexo.com or call 1-800-828-7762 Option 2, Option 2. Review your Open Accounts Receivable at the AR Dashboard Document AR action plans in E=Business Review Review Collection Tips and FAQs Visit the Collection Tips page on Sodexo Net (keyword: Collection Tips)

DO – ACTION CHECKLIST AR Action Checklist Validate Open AR invoices by the AR Dashboard in E=nterprise Analysis Submit any new invoices to client Answer any client questions regarding the invoices Get confirmation of expected payment date for invoices Follow-up in a timely manner to ensure payment was sent If payment is delayed determine reasons and reach out for help if unable to resolve View Open AR invoices to ensure payment was posted correctly

DO – Best Practices Best Practices Keep good relationships with the client and their AP department Follow the Collections Cycle – Plan, Do, Check, Act Hand deliver accurate invoices and review face to face to ensure all questions are answered Review your Open AR daily/weekly Timely follow-up by DM and/or upper management when issues aren’t resolved a the unit level (See something…say something) Be aware of Period and Quarter close deadlines Don’t be afraid to ask for help! Catering – require a 50% advance deposit (AF Topic 701-01 Prepayments) and collect balance due at the time of service 

AR Reference library on SodexoNet FAQs Common Collection Issues Missing Invoice Expired Purchase Order Client needs more info to process the payment (or reconciliation issue) Invoice errors/billing dispute (i.e. sales tax, labor charges, etc.) Invoice not billed or delivered in a timely manner Client missed their promise to pay by date Client’s require of multiple sign-offs to process invoice for payment Disorganization in client’s finance department Client is paying on different terms than agreed upon contractual terms Client has cash flow issues Client waiting on funding from State or other sources Common Collection/AR questions Where to send the check regular mail? When to send the check overnight and to what address? How to convert Client to Electronic Pay? How can I lower my DSO? Where can I get a collection form letter? What payment options are available to my client? How does Sodexo calculate interest? What is the best practice for invoice delivery and collection? AR Reference library on SodexoNet

SHARE - WE WANT TO HEAR FROM YOU Technical issues: Help Desk 1.888.667.9111 and follow the prompts to E=Vision dashboard Functional Issues: Help Desk 1.888.667.9111 and follow the prompts to E=Vision dashboard or contact the  E=Vision Reporting team at: NorAmFSIReportingandAnalysis@sodexo.com Additional Questions: Please send an email to AccountsReceivable.NorAm@sodexo.com or call 1-800-828-7762 Option 2, Option 2.

3 Q&A Julie

Monthly Calendar Conversion Unit Controller Calls June 2017 Monthly Close Calendar (Wendy Cano – PM from FSS SAP Initiatives)

Monthly Calendar Conversion Update Where are we in the conversion? Created and published the FY18 and FY19 monthly fiscal calendars Notification letters went out to… 2905 US Clients 161 Canadian Clients 324 SodexoMagic Clients 84 Brands 221 Subcontractors Testing phase Successfully tested 419 SAP and Reporting test scripts Logged and fixed 21 defects Successfully tested a mock monthly close week schedule Successfully completed integration testing with several impacted peripheral systems

The New Sales Accrual A new program will be implemented to accrue for the service days which are not billed in the previous month by the cutoff date of BD+2 (Business Day 2). The program will look at the billing status in Fiori to determine if the accrual is needed The program will compute the number of days to accrue based on the difference between the ‘settlement to’ date and the month end date, then multiply by the average daily accrual rate The average daily accrual rate will be calculated by referencing the last posted invoice for the previous settlement period and divide by the number of days in the billing cycle The accrual will post to the GL accounts utilized on the last posted invoice and post to the month end date as a reversing entry and will reverse on the first day after close If an invoice will not be generated for the last week of the period, then it is critical to ‘skip’ the billing date to prevent the program from posting the accrual to the financial results

Skipping a Billing Record There may be times when a Fiori user should not bill for a particular Billing Record in their billing schedule. To skip a Billing Record (Date) the Fiori user should use the button labeled “Skip Billing Date” when that Billing Record is in due status Clicking this button will cause an additional dialog box to appear asking the Fiori user why the particular Billing Record should be skipped. The user should select the reason which best applies to their situation: Temp Close Scheduled Temp Close Emergency Dispute/Negot Pending Dispute/Negot Waived Other After selecting a reason code, clicking Confirm will complete the Skip Date process. Clicking Cancel will return the user to the prior screen (no action taken).

The New Sales Accrual

The New Payroll Accrual With the changes from the 5-4-4 fiscal calendar to a monthly fiscal calendar, the US Payroll Labor Wage Accrual Process will be automated to post for both weekly and bi-weekly payroll cycles in SAP, two Business Days (BD+2) after the last day of the month. Posting is for direct and indirect units This process will use available payroll data from the Kronos database for actual days worked and processed in Kronos Kronos will create the accrual file based on the totals for pay codes with associated dollars applied to the worked cost center for the calendar days between the close of the last pay cycle and the last day of the calendar month The data contains just payroll related data, no general ledger (Paid Time Off) accruals An accrual for the Benefit Posting will be a prorated amount of the previous Friday’s Aon Hewitt GL posting The program will determine the number of days in the last week of the month

The New Payroll Accrual – Key Notes Your current payroll cycles will not change with the move to a monthly fiscal calendar You must enter and save your time in Kronos by 12:00 pm EST on BD+2 in order for it to be included in the accrual calculation The existing automated Canadian Payroll Accrual will be updated to reflect the new monthly calendar

The OSI Change Beginning August 12th 2017 users will not be able to enter and transmit payroll accrual data from the OSI module in UFS, as payroll data will be sent from Kronos to SAP. OSI line numbers 89 through 97 will be removed from all schools units’ templates The Payroll Accrual Setup/Update button will be removed from the screen Line No OSI Account Description 89 99996000 HRLY-CALENDAR WAGE ADJ 90 99996005 ADMIN-CALENDAR WAGE ADJ 91 99996010 ADMIN-CALENDAR BEN ADJ 92 99996015 HRLY WAGE A/D-UNION 93 99996020 HRLY BEN A/D-REGULAR 94 99996025 HRLY BEN A/D-UNION 95 99996030 HRLY WRK CMP A/D-REG 96 99996035 HRLY WRK CMP A/D-U 97 99996180 ADMIN WKRS COMP A/D

September 2017 Important Dates Transmission Deadlines Friday 9/01 – week ending 8/31 Monday 9/04 – week ending 9/01 BD+2 Enter Time in Kronos by 12:00 pm EST Finalize Client Invoice by 5:00 pm EST Financial Close - Day 1 (BD+3) Review Preliminary Reports All Adjustments Due US Holiday Financial Close - Day 2 (BD+4) Analyze Financial Results Canadian Holiday Final Period End Settlement Invoices Available (D+5) Four Day Inventory Reporting Window

Timeline Timeline Go-Live! Command Center help desk Roll out training Continue training Go-Live plan execution Ongoing support Capture learning/ post launch survey June 2017 July 2017 Aug. 2017 Sept. 2017 and beyond 36

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 Continuing to become familiar with the timelines and due dates 4 Where to Find Help & Support Reference support documents on the Monthly Calendar Conversion (MCC) page of Sodexo Net Check out the FAQs 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?

UFS Application – Controller Corner 39

Resources Questions? Unit Controller Network Call Materials UFS Launch site UfsAdministrator.Noram@sodexo.com Kronos Analytics Kronos.Support.USA@Sodexo.com AR Collections: Technical issues: 1.888.667.9111 NorAmFSIReportingandAnalysis@sodexo.com AccountsReceivable.NorAm@sodexo.com Accounts Receivable: 1-800-828-7762 Option 2, Option 2 Monthly Calendar Conversion (MCC) Transversal Finance SodexoNet Page 40