FY19 Controller Call Series The presentation will begin momentarily Welcome to the FY18 Controller Call Series. this call series – *created by unit controllers and supported by Finance to review topics and inform the Controller Network about timely topics that impact the controller role. January 2019

Safety Moment (Jill Helms) Client Penalties (Gerard Cuomo) Collections – Best Practices (Brad Hamman, Kendra Mailhot) SoGo Cash Card (Debbie Anderson) Questions

Safety Moment: Distracted Driving

Safety Moment: Distracted Driving DID YOU KNOW Behind the wheel, nothing is more important than focus. A laser focus on what’s ahead, around and behind your vehicle. Stay aware of road and weather conditions, traffic, pedestrians, your speed and your need to be in complete control of your vehicle. Do not take a call, make a call, text, apply makeup, eat, let your eyes or mind wander to other people in your car, or do anything other than focus on your driving. If any of the above things must be done, pull safely off the road and out of the traffic flow to do them. Every day people are killed and injured simply because a driver is distracted.

Safety Moment: Distracted Driving WHAT IS DISTRACTED DRIVING? Distracted driving is any activity that could divert a person's attention away from the primary task of driving. All distractions endanger driver, passenger, and bystander safety. These types of distractions include: Texting Using a cell phone or smartphone Eating and drinking Talking to passengers Grooming Reading, including maps Using a navigation system Watching a video Adjusting a radio, CD player, or MP3 player

Key Facts and Statistics 2.35 million people in the US are injured or disabled by car crashes every year. More than 330,000 of these crashes that cause severe injury are caused by texting and driving. Five seconds is the average time your eyes are off the road while texting. When traveling at 55mph, that's enough time to cover the length of a football field blindfolded. At any given daylight moment across America, approximately 660,000 drivers are using cell phones or manipulating electronic devices while driving, a number that has held steady since 2010. Over half of people surveyed admit they respond to a text message once or more every time they drive. As of June 2017, 47 states and the District of Columbia had banned texting while driving. In Alaska, texting and driving can result in a whopping $10,000 fine! #ITCANWAIT https://www.itcanwait.com/pledge

Client Penalties Policy Update January 22, 2019 Gerard Cuomo, Corporate Controller

Client Penalties – Conceptual Illustration Sodexo Provides goods and services to its clients. In exchange for these goods and services, Sodexo receives consideration (cash). Sodexo obtains inputs from Vendors, employees and others in order to produce the goods and services. Revenue Cost Goods and Services Inputs Client Sodexo Vendors Labor Cash Cash Cash When Sodexo delivers consideration to the client, there is a presumption that this exchange is a reduction of the sales price of the goods and services. This presumption is only overcome if Sodexo receives a discrete benefit for the exchanged consideration (e.g., the client is providing an input). Client Penalties are instances where Sodexo delivers consideration to the client where Sodexo receives no distinct benefit.

Based on Service or Service Delivery Definitions Client Penalties: Amounts payable to clients when, in accordance with contractual terms, non-contractual agreement or constructive agreement that establishes specifications, targets and/or thresholds for the services to be provided, our performance of the services fails to achieve those specifications, targets and/or threshold during the period of measurement. Key Components 1: Payable to the Client 2: Based on Service or Service Delivery Non-contractual agreement: An agreement established in a form other than a commercial contract e.g., a side letter, verbal or non-contract written agreement. Constructive Agreement: An agreement established by Sodexo's past practice.

General Examples For illustration purposes. List not all inclusive Client Satisfaction Our contract requires that we survey customers on their opinions of our service quality. If the average survey results fall below an average score of 80, Sodexo must pay the client $25,000. Service Response Time Client representatives submit service requests which Sodexo then logs into its work order management system. The time the work order is submitted and closed is tracked. If the average work order time to closure exceeds 2 hours, Sodexo must pay the client $10,000 per hour the average exceeds the 2 hour threshold. Labor Fill Rate Sodexo charges the client a fixed price for its services. Sodexo is required to maintain a certain level of full time equivalent headcount (FTE) in order to ensure a certain level of service quality and availability. If the level of FTE dips below a threshold, Sodexo must pay $25,000 per FTE below the threshold. Fee Guarantee Sodexo earns a management fee on a facilities management contract. If the total costs of the contract exceed $1,000,000, Sodexo must pay the client 10% of the excess over $1,000,000.

Accounting Policy Client penalties are recognized as a reduction to revenue (a contra-revenue), not an expense. Client penalties should be recognized when incurred i.e., when it is probable and estimable that the penalty will be payable. Past practice has been inconsistent. Client penalties were occasionally recognized as expense. In other words… If current performance indicates that Sodexo will trigger a penalty once that penalty is officially measured (e.g., at the end of a calendar year) and Sodexo can make a reasonable estimate of the value of the penalty, the penalty should be recognized in the current period. It is not necessary for the penalty to be ‘officially’ levied. Client penalties are recorded to Account: 7001.4205 – Rev Contra – Penalties RFM0000 (HFM Account for entities not on SAP)

Questions?

Finance Shared Services Credit & Collections Best Practices / Q2 Close Brad Hamman –FSS Director of Credit/Collections Guest Speaker Kendra Mailhot – Unit Controller at Lowell General 1/22/2019

Collections Process Plan Do Check Act Plan Do Act Check Segment Operations and Finance are primarily responsible for collections and contact with client. The FSS Credit & Collections team’s primary role is too assist, train, or coordinate efforts and when needed interact directly with the client as either a fresh voice or a firm hand. Plan 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

Best Practices Follow the Collections Cycle – Plan, Do, Check, Act Keep good relationships with the client and their AP department Be professional but don’t be afraid to ask questions of the client Hand deliver accurate invoices and review face to face to ensure all questions are answered Review your Open AR daily/weekly Timely follow-up is key Be aware of Period and Quarter close deadlines (i.e. Collect It) 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 

COLLECT IT! Method of Payment - Checks ALERT: Q2 Deadline for AR Collections AR Payments Must Be Deposited in the Lockbox by Noon (EST) Thursday on Feb 28th Method of Payment - Checks Mon/Tues, February 25th and 26th AR Payments over $2,500 Overnight checks to the Pittsburgh, PA lockbox Sodexo Inc. & Affiliates Attn: 360170 500 Ross St 154-0455 Pittsburgh PA 15262-0001 412-234-4381 Weds, February 27th Overnight checks to the Pittsburgh, PA lockbox; UPS: Select Next Day Air Early delivery Weds, February 27Th thru Thurs, February 28th 12:00 EST AR Payments over $100,000 Call BSC AR at 1-800-828-7762 Option 2, Option 2 ** Corporate AR and Treasury will attempt to make alternative arrangements for large AR Payments on a best efforts basis.

ALERT: Q1 Deadline for AR Collections COLLECT IT! ALERT: Q1 Deadline for AR Collections AR Payments Must Be Deposited in the Lockbox by Noon (EST) Thursday on Feb 28th Method of Payment – Electronic payment (ACH)  ACH clear via the Federal Reserve clearinghouse in 1 to 2 business days. They are not guaranteed to clear overnight. Tues, February 26th Determine with client AP whether their bank ACH is 1 or 2 day processing. If 2 day, it must be processed with a value date of Feb 28th by 3 PM EST Weds, February 27th If 1 day, it must be processed with a value date of Feb 28th by 3 PM EST Thurs, February 28th 12:00 EST ** Corporate AR and Treasury will attempt to make alternative arrangements for large AR Payments on a best efforts basis. Call BSC AR at 1-800-828-7762 Option 2, Option 2

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 Billing and posting Questions: Please send an email to: AccountsReceivable.NorAm@sodexo.com or call 1-800-828-7762 Option 2, Option 2. Collections support and advice: Please send an email to the Credit and Collections team: Creditcollections.noram@sodexo.com

Questions?

Not just a payment solution Debbie Anderson, FSS STORED VALUE PROGRAMS Not just a payment solution

What is SoGo Cash Card? Single Card… Multiple Solutions Replaces paper gift certificates Sodexo branded gift/spending card 24/7 consumer help desk Reconciliation supported through Buffalo Accounting & Control – no deferred income logs Single solution for multiple POS Reduces cashless transaction fees Branded consumer web interface www.SoGoCashCard.com

Why SoGo? Guest Benefits Sodexo Benefits SoGo Cash Card Never worry about having cash for on-site purchases Less risk vs credit card Manage & protect their balances at SoGoCashCard.com Variety of automated funding options 24/7 help desk support No fees, ever Reduce credit card fees Quicker checkout Provides flexible, interoperable cashless solution Reduces overall cashless transaction fees Reduces GM administration time, SoGo provides deferred balance sheet Drive check average Drive traffic, incremental sales growth, margins, satisfaction SoGo Cash Card Guest Benefits Sodexo Benefits Client Benefits Added value & convenience for client employees Encourages users to stay on site Perfect for visiting customers & off site employees attending meetings Provides a turnkey option for on-the-spot employee recognition Rewards & recognition

SoGo collateral –SodexoNet, Print Mgmt, Meyers

80,00 registered card holders SoGo Fiscal Update 554 active locations 80,00 registered card holders $13M redemptions $7M website loads $3M client funded loads 22%

SoGo Swipe Fees vs Credit Card Fees

SoGo Cash Card Team Supporting our guests Revenue Acct SoGo Guest Support 888-345-SoGo 24/7 help desk Check balances by phone Email sogocashcard.USA @Sodexo.com SoGo Team of Experts Revenue Acct Supporting our guests Help desk languages – English, Spanish & French FAQ’s on SoGoCashCard.com Refunds made easy Live agents 24/7 Email allows guest to direct connect AM Ex Fees

SoGo Powered By Industry Leaders The SoGo Cash Card is powered by Bank of America Merchant Services Bank of America Merchant Services is a global leader¹ in payments, eCommerce and security solutions. It helps clients of all sizes effectively manage and grow their businesses by enabling them to deliver a great commerce experience for their customers. The company processes more than 15.2 billion transactions at approximately 660,000 merchant locations1 throughout the United States, Canada and Europe. Also powers well-known programs such as the Starbucks Card, McDonald’s Arch Card, and Burger King’s Pay it Your Way Card On-line payment transactions are processed seamlessly by Payeezy, an industry leader and industry certified solution for secure web based payments. 1 Per The Nilson Report, March 2017,  Issue 1105

2019 Stored Value Goals Reduce volume of Freedom Pay locations to save clients $$$$ Eliminate use of paper gift certificates Expand SoGo volume to reduce program costs Contact Debbie.Anderson@Sodexo.com 716-932-2845

Questions?

Open AR Report Quick Guide for E=Vision and E=nterprise Analysis January 2019

Slide 3 – Quick Guide for E=Vision Report Instructions for Generating Open AR Report in E=Vision and E=nterprise Analysis Slide 3 – Quick Guide for E=Vision Report Slide 4 – Quick Guide for E=nterprise Analysis AR Dashboard Report Both Reports stem from the same data source – choice of which report to use is a matter of preference on report output view E=Vision Report – takes additional clicks to access the report but once generated, exports to a quick clean format E=nterprise Analysis AR Dashboard Report – less clicks to access report, generates more data that can then be customized

From E=Vision Noram Financials Page Click on the AR Metric tile (may already be expanded 2) Click on the Daily AR Analytics link at the top right of the AR Metric tile 5) Click on the “Total” line to bring up the invoice level detail below 6) Click on the pdf symbol to export the Open AR 3) Click on any bar in the top graph to Drill to details for that time period 4) From the detail screen change filters as needed and click run

From E=Vision home Page: Click on E=nterprise Analysis and Choose the AR Dashboard 4) Choose time period in page filters or leave as current period default 5) Choose Report Open Accounts Receivable Status by Customer and Click Apply 2) Click on the AR Aging Tab 3) Complete the Dashboard Filters and Click Apply 6) Scroll to bottom of report to print or export 7) Follow instructions in AR Dashboard guide to customize the report

Questions Contact Information SoGo Cash Cards www.SoGoCashCard.com Debbie.anderson@sodexo.com Client Penalties Gerard.Cuomo@sodexo.com Credit and Collections Billing and posting Questions AccountsReceivable.NorAm@sodexo.com or call 1-800-828-7762 Option 2, Option 2. Collections support and advice Creditcollections.noram@sodexo.com UFS Help Desk (UFS technical support): (888) 667-9111 options 1, 2, 1 Helpdeskufssupport.Noram@sodexo.com UFS Administrator (general UFS questions): NorAm.UFSAdministrator@sodexo.com