Hamill Bassue Owen Hendershot Goran Nagradic

Compass Group PLC World’s largest foodservice company Providing services in more than 90 countries Providing food and beverages in myriad form from vending machines and corporate catering to bringing popular franchises such as Burger King, KFC, Taco Bell, Pizza Hut and T.G.I.-Fridays Operating in schools, airports, military bases and correctional and healthcare facilities Employing more than 400,000 people

Operating Sectors

Owned & Franchised brands and Major Clients

Mission and Vision Statements Our Vision Our Mission To be a world-class provider of contract foodservice and support services, renowned for our great people, our great service, and our great results. Everyone in Compass is committed to consistently delivering superior service in the most efficient way, for the shared benefit of our customers, shareholders and employees.

New Mission and Vision Statement Our vision is to become the worldwide leader in food and support service, providing world class services, and setting the standard of excellence in the foodservice industry. To achieve this, everyone that is a part of Compass Group is passionate and committed to working together, to delivering superior food and service in the most efficient way for the share benefit of our environment, customers, shareholders and employees. We approach every opportunities and challenges with a positive and commercially aware "can-do" attitude. We operate with openness, trust and integrity and aim to never compromise on the safety and health of our customers and our people, and to manage responsibly the impact that our business has on the environment.

Objectives Our objective is to deliver value to our shareholders and our customers by leveraging the benefits of being a Group to deliver structured and sustainable organic growth in our chosen markets and achieve our vision to be a world-class provider of contract foodservice and support services.

Our Guiding Principles Safety, Health and Environment First Delivering for Clients and Consumers Developing our People and Valuing Diversity Profitable Growth Constant Focus on Performance and Efficiency

Our Values Openness, Trust and Integrity Passion for Quality Win Through Teamwork Responsibility Can-do

Sir Roy Gardner – Chairman Management Sir Roy Gardner – Chairman Richard Cousins – Group Chief Executive Andrew Martin – Group Finance Director

Brief History 1941 - Group founded in the UK as ‘Factory Cateens Ltd’ 1960 - Bateman & Midland Catering acquired by Grand Metropolitan and eventually merged as Grand Met Catering Services 1984 - Grandmet Catering re-launched as Compass Contract Services 1987 - Management buy out the contract services division of Compass Services from Grand Metropolitan and form the new Compass Group 1988 - Compass Group PLC listed on the London Stock Exchange Beginning of global expansion

Global Presence

MAP Strategy MAP is a performance driven strategy focused on five key points: MAP 1 – Client sales and marketing Achieved through better targeted businesses, tighter contracts and sharper contract evaluation. Concentrated on client pricing strategies and growing client volumes (through additional services: cleaning, portering, reception and concierge). MAP 2 – Consumer sales and marketing Focuses on developing our retail philosophy in order to increase participation and spend per head (extending our offer to include breakfast and “Grab & Go” concepts.

MAP Strategy (cont’d) MAP 3 – Cost of food MAP 4 – Unit costs Addresses cost efficiencies through a systematic approach to menu planning, purchasing and supply chain, and unit processes. MAP 4 – Unit costs We spend nearly £5.5 billion per year on unit costs and we have been managing this through: labor productivity and scheduling; control of labor costs; and in-unit overhead opportunities. MAP 5 – Above unit overheads we spend £0.8 billion on above unit overheads per year. The savings have been achieved through: management reorganization; consolidated back office functions; change management processes; and tightened control of discretionary spend.

Internal Assessment In the inside

Compass Group PLC’s performance chart 2007

Financial Statements Income statement Balance sheet Cash flow

Financial Ratios Ratio Compass Group PLC Industry Current 1.06 1 Quick 0.98 0.7 Debt-to Total assets 0.25 Debt-to Equity 0.74 1.07 Long-term debt-to Equity 0.67 Time-interest-earned 2.81 15.5 Net Profit Margin 0.05 8.0 Gross Profit Margin 16.5 Operating profit Margin 21.4 Ratio Compass Group PLC Industry Return on Total Assets 0.08 8.14 Return on Equity 0.24 24.5 EPS 0.25 P/E 12.87 12.8 Sales (growth) 0.01% 8.9 Net Income (growth) 77.63% 13.71 EPS (growth) 92.31% 24.6 Dividends (growth) 6.93% 6.28

Strengths & Weaknesses EPS increased by 62% Increase in net income 78% Strong brand name High income clientele Large employee base Liquidation of assets Very low revenue growth Diversity (hard to manage) Very poor cash reserves Poor usage of Internet (as a marketing tool)

IFE Matrix

External Assessment Outside of the box

Opportunities & Threats Aging population Consumers value leisure time (want to spend less time cooking and cleaning) Industry experiences a steady growth Increasing environmental consciousness of consumers Increase in desire for awareness in healthy eating Food cost inflation Rise in unemployment rate Higher fuel prices Decrease in value of money Competition (Aramark, Sodexho)

EFE Matrix

Global Cost Foodservice Industry The global cost foodservice sector grew by 3.6% in 2007 to reach a value of $250.9 billion.

Global Cost Foodservice Industry (cont’d) The global cost foodservice sector grew by 0.7% in 2007 to reach a volume of 116.6 billion transactions.

Global Cost Foodservice Industry (cont’d)

Future Forecast of the Industry

Competitive Profile Matrix

Strategic Formulation

Space Matrix FS Conservative Aggressive IS Defensive Competitive +6 +5 +4 +3 +2 +1 IS -6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6 -1 -2 -3 -4 Defensive -5 Competitive -6

IE Matrix Grow and Build

SWOT Matrix

The Grand Strategy Matrix

Alternative Strategies Matrix Evaluation Alternative Strategies IE SPACE GRAND Total count Forward Integration X 2 Backward Integration Horizontal Integration Market Penetration Market Development Product Development Related Diversification Unrelated Diversification Joint Venture 1

QSPM

Possible Strategies Developing new organic-only products (S2, S3, S4, O4, O5) – 1.67 Further global expansion – Russia in particular (S2, S3, S4, O2, O3) – 1.67 Acquire local farms to minimize the cost of transport and to provide fresh and organic products(S2, S3, T1, T2, T3) – 1.65

Grow + Organic = Groganic Future Plans Grow + Organic = Groganic

Objectives Continue exercising MAP Strategy Increase revenue Establish company as market leader in organic environment-friendly food industry Increase quality of food Selling out certain companies within our fast food sector (everyone except Burger King)

Recommendations Turn into producing only organic (healthy) environment-friendly food (which is also applies “going green”) 1,000,000,000 Get out of fast food business by selling out company’s franchises and own brands to weaker competitors than the market leader – $10,000,000,000 Acquiring local farms to minimize the transportation costs and to improve the freshness of products 1,000,000,000 Invest into development of healthier and more organic products 1,000,000,000 Build new organic menu for Burger King (adjust the fast food business to provide the new menu) 2,500,000,000 Build a recycling center for all of the company’s waste 1,000,000,000 Plant trees and spend money into cleaning the environment 2,000,000,000 Total Profit: 1,500,000,000

Implementation A new beginning

Other Issues Environment pollution Cultural differences Laws and regulations in foreign countries Use of Internet must improve

Evaluation Healthy Rotten Polluted

Update 2009 Compass Group PLC Stock performance

Questions ???