FY16 Controller Call Series August, 2016 Please mute your line to prevent background noise: * 6 to mute your line # 6 to unmute your line

Unit Controller Calls – August 9 & 11th YE Late Payable Accruals (15 minutes – Steve Dabrowski) Transversal Finance (40 minutes – Wendy Cano) Close Consolidate Report Questions Unit Controller Calls – August 9 & 11th This call is the second of two Unit Controller Calls for the month of August. The content of both calls is the same. This call is meant to inform the Controller Network about timely topics that impact the controller role. I am CS, coordinator of the UCN call series. Welcome to anyone who is new to this series. Thank you to everyone who has been forwarding….. Now have the ability to develop DL with all in-unit finance roles – new format for FY17 After our call today the presentation materials will be added to the Controller Corner section of the UFS landing / launch page. Our UFS page is new last period. We will continue to use the UFS landing page to communicate out news, alerts, and UFS touchpoints. Scroll to the bottom right corner of the page for Controller call materials from this and all previous months this FY Unit Controller Call August 2016

YE Late Payables Accruals Steve Dabrowski, Accounts Payable

Top Reasons for Late Payments Invoice received late or not received from vendor Invoice misplaced/skipped in error Employee turnover at the unit Discrepancy between client and Sodexo of who was responsible for payment Dispute with vendor on invoice New unit start up Goods received / Services completed late in month

Late Payables Impact Impact: Tracking and Monitoring: Misstated Financials Vendor credit holds Service shut-offs Increased risk of duplicate payments Challenges with Billing the Client Tracking and Monitoring: Invoice Status Searches Available Enterprise Portal – Invoice Status Lookup AP Dashboard – Vendor Invoice Status Search E=Vision Financial Dashboard – Accounts Payable Create a purchase log to track from purchase date to payment date.

Take Action to Eliminate Late Payables Paper invoices (non e-Pay/TMC) Enter in UFS and transmit in the week/period the invoices are dated and the goods/services are received. If invoices are not received timely: Contact your vendors and request that they email or fax outstanding invoices OR Ask your vendors if they offer an online option for retrieving invoices. Electronic invoices (e-Pay/TMC) Reconcile and approve in e-Pay/TMC within the week/period the goods/services are received. If invoices do not appear in e-Pay or TMC timely: Contact your vendors to determine if the invoice has been submitted/loaded. Submit a Missing Invoice Investigation Form (on SodexoNet) – these invoices will be automatically accrued if AP’s investigation has not been completed by period end. Accrue for open invoices not available by the final transmission deadline (August 29 @ 11:45pm ET). This includes electronic invoices for which a missing invoice investigation form has not been submitted.

Late Payables Resources SodexoNet: Accounts Payable Support Center Missing Invoice Investigation Form Search “Eliminate Late Payables” Invoice Status Lookup Portal Forms Center – Standard Close Adjustment Form AP Dashboard via E=nterprise Analysis: Invoice Register Vendor Invoice Status Email or call: APEDIAdministrator.NorAm@sodexo.com APUnitProcessingCorrespondence.NorAm@sodexo.com 1-800-828-7762 opt 1, then 2 Accrual Requests – Operations Accounting

Questions?

Transversal Finance Organization Unit Controller Transversal Update August 9 & 11, 2016

Objectives Meeting Objectives Build your understanding of what to expect with upcoming Close process improvements Answer outstanding questions on the changes and implementation plan

Drivers behind Improving Close, Consolidate, & Report The goal of improving the Close process is to make Close less of an event and ultimately prepare the organization for a smooth transition to a Monthly Calendar Close 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 Manual JEs are recorded annually 72,000 58% of manual JEs are booked during Close of manual JE lines are less than $10 31 % of manual JE lines are less than $1,000 83 % of service tickets are logged at Close 63 %

Opportunities to Improve Close, Consolidate, & Report Project Initiatives H 1 2 26 initiatives aimed at improving the close process were identified and prioritized based on effort and impact 13 initiatives were selected to begin implementation within the next year 3 initiatives were prioritized as “Do Now”: Daily and Timely UFS Transmissions Frequent Review of Unit Financials Materiality Thresholds 10 3 11 12 4 5 Next 1-3 Months 6 7 17 18 8 9 19 20 14 Next 4-13 Months 15 16 Impact M 23 24 21 22 To Be Addressed Later 13 26 25 L H M L Effort to Implement Legend: Legend: 1-3 1-3 Do Now Do Now 4-13 4-13 Short term Short term 14-26 16-25 Out of Scope Out of Scope Today’s focus is on the 3 “Do Now” initiatives set to rollout in September 2016

How the “Do Now” Initiatives Work Together CCR design is focused on taking the first steps forward to prepare for a Monthly Calendar Close Initiative #1 Daily UFS transmissions Operators Real time data is put in Catch and fix mistakes earlier reducing the impact of… Initiative #2 Frequent review of Unit financials Initiative #3 Materiality Thresholds More timely reporting is shared back Updated financial reporting in E=Vision Finance All three initiatives help make Close less of an event by reducing peak effort during Close

Initiative #1: Which modules to submit daily in UFS? Submitting daily prepares us for the end of week ending dates in the move to a monthly close Submit Monthly Submit Weekly Submit Daily If module available in your Segment Inventory1 Resident Vending Cash (no change from today) Warehouse Vending Billing (Invoices): Contractual2 X Linen Master Billing (Invoices): Non-Contractual X OSI Statistics Billing Memo3 X Petty Cash Accounts Payable: Manual Invoices X Accounts Payable: UIPS Invoices X Transfers X X Change in Recommended Submission Frequency Not changing the process for UFS transmissions, just changing the frequency of the process 1Poilcy for submitting Inventory is monthly but there may be exceptions 2If bill is prepared 3In Corporate Services and Healthcare

Initiative #2: Which items to review in financials? Units will be expected to review financials more frequently throughout the month Daily Financial Activity View (DFAV) AP Register AR Dashboard Where? E=Vision E=nterprise Analysis When? Weekly Daily Why? Identify required adjustments prior to period end Identify paid invoices that require further attention Provide input for capitalization Identify outstanding invoices What to review? Re-classes Labor expense re-classes between cost centers within the Client Postings from other systems: PCAs, labor expense, depreciation, expense reports, JEs Paid vendor invoices Capitalization Audit and Collections Review financials more frequently to catch errors earlier and better manage the business

Initiative #3: How will materiality thresholds work? Units should no longer expect to receive accruals for manual JE requests under $2,500 Materiality Threshold $2,500 JE Total Level by Event (Debits Only) 0.05% Annualized % of $’s booked below threshold1 ~22.8M Annualized impacts of $’s booked below threshold1 Threshold Process Start Period End Miss a UFS cutoff Manual JE request Inform Requestor of Policy Book in following period Below $2,500 threshold? Exception? No End Yes No Yes Book Book Exceptions will be exclusively: Contract ending or part of client fiscal year end System error (first time only) Account reconciliations Statutory requirements Actuals Statistical entries End End BSC JE Requestor If following initiatives #1 and #2 errors should be caught prior to period end 1 Projected based on FY16 Q2. Source: Manual JE Posted SAP extract files for FY16 P4, P5, and P6

Testing in Progress What is being tested?: By moving from weekly to daily UFS transmissions it will be critical to test the following scenarios to ensure the daily transmissions are functioning as desired What is being tested?: Accurate date logic and period postings No data overwrites Transmitted UFS data reconciles to balances in SAP and EDW Data is correctly displayed on reports Feedback will be collected from UFS testers to identify any issues before launch

All 3 “Do Now” initiatives will rollout September 5, 2016 Next Steps Support will be provided starting in August to introduce and support Units, Finance, and the Shared Services Center in the new process changes Implementation Support Mid-August Late August Early September October Introduce and define initiative/s Provide additional detail to prepare for change Remind of launch and new expectations Reinforce new behavior Transversal mailbox to collect questions Ongoing governance updates to remind about expectations Articles and FAQs on SodexoNet WebEx calls describing changes Job Aids and Process Flows for support on-the-job All 3 “Do Now” initiatives will rollout September 5, 2016

Frequently Asked Questions Can I transmit invoices at multiple points in a given week? Will inventory and payroll still hit E=Vision on Wednesdays? Other questions? Before we start an open Q&A - I thought I’d call out a couple of questions that are probably on your mind right now…

Appendix

The Journey to the Future Close, Consolidate, & Report The journey to achieve an improved Close, Consolidate, & Report (CCR) process will occur in ongoing steps over the year ahead Key Goals Through Implementation of Initiatives Enhance Governance and Accountability “Do Now” Initiatives Eliminate Non Value-Add Processes Distribute Effort over the Period Winter 2016 Ongoing Fall 2016 Late Winter 2016 Reduce Manual & Disparate Processes Talking points: to provide more specifics on what is submitted daily ( and what key metrics can see in financial reporting Incorporate Right Levels of Financial “Precision” The “Do Now” initiatives start the journey of making Close less of an event

Questions?

UFS Application – UFS Landing Page Be sure to access the UFS launch site – scroll down to the lower right corner to access “Controller Call Corner.” Presentations are loaded to this site for distribution. 23

UFS Application – Controller Corner Be sure to access the UFS launch site – scroll down to the lower right corner to access “Controller Call Corner.” Presentations are loaded to this site for distribution. 24

Resources Questions? Unit Controller Network Call Materials UFS Launch site UfsAdministrator.Noram@sodexo.com YE Late Payables Stephen.Dabrowski@sodexo.com APEDIAdministrator.NorAm@sodexo.com APUnitProcessingCorrespondence.NorAm@sodexo.com 1-800-828-7762 opt 1, then 2 Accrual Requests – Operations Accounting Transversal Finance Wendy.Cano@sodexo.com Thank you for your participation, your time, and for your support of this very important call series. Resources for the topics covered on today’s call are listed here. Copy of today’s deck can be obtained by visiting the Controller Corner on the UFS launch site 25