Sodexho Announces Strong Growth in First-Half Fiscal 2007 Results
Regulatory News:
-- Acceleration in organic revenue growth: + 8.2%
-- Operating profit up: + 20.4% excluding currency impact
-- Substantial rise in net income: + 24%
-- Continued robust financial model: net cash provided by
operating activities of 211 million euro
-- Upward revision of the Group's objectives for Fiscal 2007
SODEXHO ALLIANCE (NYSE:SDX) (Paris:SW), The Sodexho Alliance Board
of Directors met on April 24, 2007, under the chairmanship of Pierre
Bellon, to approve the Group's financial statements for the first half
of Fiscal 2007, which ended on February 28, 2007.
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First First Change Currency
(in millions of euro) Half Half (excluding impact Total
Fiscal Fiscal currency (1) change
2006 2007 impact)
------------------------- ------- ------- ----------- -------- -------
Income statement highlights
======================================================================
Revenues 6,546 6,819 + 8.4% - 4.2% + 4.2%
Operating profit 315 364 + 20.4% - 4.8% + 15.6%
Operating margin 4.8% 5.3%
Group net income 160 198 + 29.2% - 5.0% + 24.2%
------------------------- ------- ------ ------------ -------- -------
Financial structure highlights
======================================================================
February February
28, 28,
2006 2007
------------------------- -------- --------
Net cash provided by
operating activities 93 211
Gearing 31% 25%
------------------------- -------- --------
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(1) The currency impact is unfavorable, however, Sodexho
subsidiaries' income and expenses are expressed in the same currency ;
hence, contrary to exporting companies, currency variations carry no
operating risk. Currency impact is calculated by applying the average
exchange rate for the prior year to the current fiscal year figures
"The Group's first-half results are good, reflecting the expertise
and commitment of our teams throughout the world as well as the
breadth of our innovative quality of life services offer. This
performance, achieved across all geographies, leads us to revise
upwards the objectives for operating profit growth that we are
targeting for the current fiscal year from the 10% growth that we had
originally stated to around 12% growth, excluding currency impact,"
said Sodexho CEO, Michel Landel.
Acceleration in organic growth of + 8.2%
At 8.2%, at constant scope of consolidation and exchange rates,
organic growth in revenues accelerated for the first-half of Fiscal
2007. This performance reflects the improvement in client retention
achieved in Fiscal 2006, good new sales activity, particularly in the
Rest of the World (Latin America, Asia-Australia and Remote Sites) and
a strong acceleration in comparable unit sales. The Service Vouchers
and Cards activity continued to show dynamic organic growth based on
its innovative offers.
Revenues for the first-half of Fiscal 2007 were reported on April
4, 2007, and the related press release is available on the Group's
website: www.sodexho.com.
0perating profit up : + 20.4% excluding currency impact
Operating profit rose by 15.6% to 364 million euro and by 20.4%
excluding the currency impact. This increase is attributable to the
continued progress achieved by Sodexho's teams across all geographies.
Food and Facilities Management services(1) :
-- In North America, operating profit reached 163 million euro,
increasing 16.1%. The operating margin for the first half of
Fiscal 2007 was 5.6%. Several factors contributed to the
improved operating profit:
-- Good development in comparable unit sales in Education and
Healthcare
-- Comparison with a Fiscal 2006 first-half that was negatively
impacted by several elements (hurricanes, timing of certain
expenditures) and losses during the winter months by Spirit
Cruises prior to its divestiture at the end of Fiscal 2006.
Sodexho was able to successfully complete certain discussions that
were long outstanding regarding its contract with the U.S. Marine
Corps during the first half of Fiscal 2007.
Among recognitions received by Sodexho in North America during the
first half of the year:
-- Diversity Inc magazine recently ranked Sodexho #13 among the
Top 50 Companies for Diversity in the U.S. for 2007. Sodexho
also received special recognition as one of the Top 10
Companies for African Americans;
-- In the U.S., Sodexho was named a winner of Profiles in
Diversity Journal's International Innovation in Diversity
Awards for Sodexho's Annual Diversity & Inclusion Report;
(1) Comparisons with the prior year are excluding currency impact.
-- For its commitment to Corporate Citizenship, Sodexho was
awarded the prestigious Empresa Socialmente Responsable (ESR)
Distinctive certification by the Mexican Philanthropy Center
for the third consecutive year, the only facilities management
company in Mexico to receive the award.
-- In Continental Europe, operating profit totalled 115 million
euro, an increase of nearly 11%. The operating margin
increased from 4.9% to 5.1%, a result of two principal
factors:
-- Improved productivity and the continuing efforts of Sodexho's
teams to reduce overhead costs;
-- The effect of major contract start-ups in France which had
weighed on operating profit during the first half of Fiscal
2006.
Sodexho teams in Continental Europe also earned recognitions:
-- In Germany, Sodexho was ranked as a leading company for its
human resources management strategy and practices in the
Geva-Institute's "top employers Germany 2007" study;
-- In Portugal, Sodexho became the first company to be certified
for its foodservices "Integrated Management System" under ISO
9001:2000, ISO 14001:2004 and OHSAS 18001:1999.
-- In the United Kingdom & Ireland, operating profit rose to 30
million euro. Operating margin was 4.2%, compared with 2.6% in
first-half Fiscal 2006. This substantial increase in operating
profit confirms the business recovery and reflects the
effectiveness of:
-- Productivity measures undertaken over the past several years,
particularly the reinforcement of rigorous management on
existing sites;
-- Application of the "Right Client Right Terms" policy to new
contracts.
Recognitions received in the UK & Ireland included:
-- In Scotland, Sodexho received Corporate Hospitality Assured
accreditation for hospitality services across all contracts,
the only supplier to be accredited in Scotland.
-- In the Rest of the World (Latin America, Asia-Australia and
Remote Sites), operating profit rose to 20 million euro, a
strong increase compared with first-half Fiscal 2006.
Operating margin was 2.7%, compared with 1.6% in first-half
Fiscal 2006. This good performance reflects particularly the
ongoing development in the Middle East and Asia and strong
activity in the mining sector in Latin America and Australia.
In the Rest of the World, recognitions were received in several
countries:
-- Sodexho's health and safety practices for its North Sea
operations were recognized for the sixth consecutive year by
The Royal Society for the Prevention of Accidents'
Occupational Health and Safety Awards and, for the eighth
consecutive year, by the British Safety Council;
-- Sodexho Brazil won "The Top Hospitalar 2006" award for the
most recognized brand in foodservices for the Healthcare
market;
-- Sodexho Colombia was recognized for its performance in
Industrial Safety, by its client Johnson & Johnson;
-- Sodexho Chile received the "Award in Management of Human
Resources" from its clients Antofagasta Minerals.
Service Vouchers and Cards:
Operating profit for Service Vouchers and Cards totalled 66
million euro, an increase of 29.7%, excluding currency effects. This
reflects the strong growth in issue volume. As operating costs are
largely fixed in this activity, the operating margin was 31.3%, or
about 1.8% of issue volume.
Substantial rise in net income: + 24.2%
Group net income rose by 24.2%, or 29.2% excluding currency
effects. This increase, stronger than that shown for operating profit,
is attributable essentially to the improvement in the effective tax
rate, from 38.8% to 35.5%, primarily as a result of refunds of
withholding taxes under international tax treaties.
Confirmation of financial model's strength
Net cash provided by operating activities increased 118 million
euro compared to the first half of Fiscal 2006, reflecting the strong
improvement in operating profit and the change in working capital.
Although the change in working capital generally weighs on net cash
provided by operating activities in the first half as a cash outflow,
this outflow was much less significant during the first half of Fiscal
2007 than for the same period of Fiscal 2006.
Cash flow provided by operating activities enabled the following:
-- Capital expenditures and investments at client sites of 108
million euro, or 1.6% of revenues;
-- Acquisitions totalling 8 million euro: notably, the
acquisition of 100% of Off-Campus Dining Network LLC (OCDN) in
the United States as part of the development of services
offered to students on university campuses;
-- Sodexho Alliance's February 12 dividend payment of 149 million
euro;
-- The net acquisition of company shares for 33 million euro to
be used for stock option plans and the liquidity contract,
As of February 28, 2007, net debt stood at 535 million euro and
represented just 24.8% of shareholders' equity, compared with 31% at
the end of the first-half of Fiscal 2006.
In order to extend the maturity of its existing debt and benefit
from current interest rates, Sodexho refinanced part of its debt by
issuing a 500 million euro benchmark bond on March 30, 2007 with a
maturity of seven years and a coupon of 4.5%.
Upward revision of the Group's objectives for Fiscal 2007
With strong performance during the first half, in Food and
Facilities Management services as well as in Service Vouchers and
Cards, the Board of Directors has approved the upward revision of the
Group's objectives. Based on current information, the Group targets
the following objectives for Fiscal 2007:
-- organic growth in excess of 7%,
-- an increase in operating profit, excluding currency effects,
of approximately 12%. (2)
(2) Versus Fiscal 2006 comparable underlying operating profit of
577 million euros, excluding the gain on disposition of Spirit Cruises
and the US litigation provision release.
-- Analyst and journalist meeting
SODEXHO ALLIANCE will hold briefings today for analysts at 8h30
and journalists at 11h00 at Espace Etoile-St-Honore, 23, rue Balzac,
75008 Paris. The analysts' briefing will be webcast. A slideshow
presentation will be available on the following link www.sodexho.com,
under the "latest news" section, beginning at 7:00 a.m. The audio
proceedings of the analysts' briefing also can be followed by
dialling: + 33 (0)1 72 28 08 88. An audio recording will be available
by dialing: + 33 (0)1 72 28 01 49 and entering the code : 197012 #.
-- Financial communications calendar
Revenues for the first nine months of Fiscal 2007
Wednesday, July 4, 2007. The announcement will be followed by a
conference call.
Fiscal 2007 revenues
Wednesday October 3, 2007
Fiscal 2007 results
Thursday November 15, 2007
The above dates are provided for information only and are subject
to change.
-- About Sodexho Alliance
SODEXHO ALLIANCE, founded in 1966 by Pierre Bellon, is the leading
global provider of Food and Facilities Management services, with more
than 332,000 employees on 28,300 sites in 80 countries. For Fiscal
2006, which closed August 31, 2006, SODEXHO ALLIANCE had sales of 12.8
billion euro. Listed on Euronext Paris and on the New York Stock
Exchange, the Group's current market capitalization is 8.9 billion
euro.
This press release contains 'forward-looking statements' within
the meaning of the United States Private Securities Litigation Reform
Act of 1995. These include, but are not limited to, statements
regarding anticipated future events and financial performance with
respect to our operations. Forward-looking statements can be
identified by the fact that they do not relate strictly to historical
or current facts. They often include words like 'believe,' 'expect,'
'anticipate,' 'estimated,' 'project,' 'plan,' 'pro forma,' and
'intend' or future or conditional verbs such as 'will,' 'would,' or
'may.' Factors that could cause actual results to differ materially
from expected results include, but are not limited to: those set forth
in our Registration Statement on Form 20-F, as filed with the
Securities and Exchange Commission (SEC), the competitive environment
in which we operate, changes in general economic conditions and
changes in the French, American and/or global financial and/or capital
markets. Forward-looking statements represent management's views as of
the date they are made, and we assume no obligation to update any
forward-looking statements for actual events occurring after that
date. You are cautioned not to place undue reliance on our
forward-looking statements.
-- Annex 1: Selection of new clients
Food and Facilities Management services
North America
Business & Industry
Alcatel, Canada, (2,000 employees, foodservices); General Electric
Nuclear Energy, Wilmington, North Carolina, (1,970 employees,
foodservices); USAA, multiple sites, (21,300 employees, foodservices);
USAA Insurance, Texas (foodservices), Houston Zoo, Houston, Texas (1.4
million visitors, foodservices); American Family, multiple sites
(4,200 employees, foodservices and facilities management); Cafe St.
Barts, St. Bartholomew's Church, New York (1,000 customers per day,
foodservices, special events); PayPal, LaVista, Nebraska, (1,900
employees, foodservices)
Healthcare and Seniors
Pincecrest Community, Mount Morris, Illinois, (215 beds,
foodservices); Sheppard Pratt Health System, Baltimore, Maryland (322
beds, foodservices); Miriam Hospital Providence, Rhode Island, (208
beds, foodservices); Landmark Medical Center, Woonsocket, Rhode
Island, (255 beds, facilities management); Stanford University Medical
Center, Palo Alto, California, (430 beds, plant operations and
maintenance); Moses Cone Health Center, Greensboro, North Carolina,
(535 beds, foodservices and facilities management); Nova Gold, British
Columbia, Canada, (1,000 beds, foodservices and facilities management)
Education
Clayton State University, Morrow, Georgia, (5,600 students,
foodservices); State University of New York-Buffalo, New York, (27,000
students, facilities management); National Heritage Academy, Grand
Rapids, Michigan, (52 schools, 26,000 students, foodservices and
facilities management); Gary Community School Corporation, Gary,
Indiana, (34 schools, 17,000 students, foodservice); Mariposa County
USD, Mariposa, California, (14 schools, 2,600 students, foodservices);
Lafayette Academy, New Orleans, Louisiana, (750 students,
foodservices); Stevens Institute of Technology, Hoboken, New Jersey,
(4,500 students, foodservices); Recovery School District, New Orleans,
Louisiana, (12,000 students, foodservices and facilities management);
Blue Springs School District, Blue Spring, Missouri,(14,000 students,
foodservices)
Continental Europe
Leisure
Eiffel Tower, France (6 million visitors annually, foodservices),
Business & Industry
Alcatel Montaigne, France (2,000 employees, foodservices); BPS
Westpoint, Netherlands (600 employees, foodservices); KLM, Netherlands
(foodservices and facilities management), BMW Bistro, Belgium
(foodservices); C.E.A Biii, France (2,300 employees, foodservices)
Healthcare and Seniors
Clinique Saint Jean Languedoc, France (300 beds, foodservices);
Grand Hotel Philadelphia, Netherlands (100 people, foodservices); UZ
Gent, Belgium (1,050 beds, foodservices); Hopital de Fourviere, France
(265 beds, foodservices) Leonardo da Vinci hospitals, France, (400
beds, foodservices and facilities management)
Education
University of Milan, Italy (200 customers, foodservices); Lidingo
Stad, Sweden (2,500 people, foodservices); Dresden Fraichaud CCS,
Germany (20,000 meals/day, foodservices); Schools in Atvidaberg,
Sweden (2,000 students, foodservices)
UK & Ireland
Prestige
World Scouts Jamboree, Chelmsford, (10 days, 40,000 people,
foodservices)
Business & Industry
Royal Horticultural Society (Hampton Court Palace Flower Show),
Hampton, (170,000 visitors, food services); ING Bank, London, (1,300
employees, facilities management); United Biscuits, head office in
Hayes and 11 manufacturing sites, (7,500 employees, food services);
GlaxoSmithKline, seven R&D sites (laboratory services)
Education
Abingdon School, Oxford, (800 students, foodservices and
facilities management); University of Nottingham, Nottingham, (1,000
employees, foodservices); University of Bedfordshire, Luton, (12,500
students, foodservices)
Rest of the World
Business & Industry
CMPC Celulosa , three sites, Chile (1,300 employees, foodservices
and facilities management); Goodyear, Chile, (600 meals/day,
foodservices) ; Rio Tinto, Madagascar (750 employees, camp
construction and camp management services); BP Shorebase Camp,
Indonesia (150 employees, camp construction and maintenance services);
Fluor O&M, Quatar (3,700 employees, camp operation and maintenance
services); Ensco, Quatar, (100 employees, foodservices and facilities
manaaement); Unilever China Head Office, Shanghai, China (1,000
employees, foodservices); Tianjin Faw Toyota Motor, China (2,300
employees, foodservices); No 3 bund, Shanghai, China (700 employees,
foodservices); Rittal Electro-Mechanical Technology, Shanghai, China
(800 employees, foodservices); Johnson Health Tech. Co.,Ltd.,
Shanghai, China (5,000 employees, foodservices); Suzhou Industrial
Park Xinhai School, Suzhou, China, (2,400 employees, foodservices);
Henkel (China) Co., Ltd., Shanghai, China, (650 employees,
foodservices); IBM, India (facilities management); Caroil, Congo, (100
people, facilities management); Red Sea Housing, Saudia Arabia, (4
camps, 400 people, foodservices and facilities management);
PlusPetrol, Peru (facilities management); Embraer Neiva, Brazil,
(2,500 meals/day, foodservices); Unilever, Brazil (1,370 meals/day,
foodservices); Procter & Gamble, two sites, Colombia, (300 meals/day,
foodservices) and Brazil (1,300 meals/day, foodservices)
Healthcare and Seniors
Hospital Sao Lutz, Brazil (250 beds, foodservices), Caritas
Medical Centre, Hong Kong (1,000 beds, foodservices)
Service Vouchers and Cards
Central Europe:
Bulgaria: Bulyard (Food Pass, 1,300 beneficiaries); Petrol (Food
Pass, 2,900 beneficiaries); Societe Generale (Food Pass, 1,200
beneficiaires)
Czech Republic: Telefonica (Holiday Pass); E.ON (Fexi Pass)
Hungary: MAV (Gift Pass, 3,000 beneficiaries)
Poland: Lidl (Gift Pass, 7,660 beneficiaries); Arcelor-Mittal
(Gift Pass, 800 beneficiaries); ThyssenKrupp (Gift Pass, 1 660
vouchers)
Romania: University of Pitesti (Food Pass, 770 beneficiaries);
Sind Romania (Food Pass, 1,470 beneficiaries)
Slovakia: T-mobile (Holiday Pass, 1,200 beneficiaries)
Western Europe:
Turkey: Sosyal Yardimlasma ve Dayanisma Vakfi (Assistance Pass,
1,760 beneficiaries)
Belgium: KBC bank (Meal Pass, 2,000 beneficiaries); Kristelijke
Medico-Sociale Institut
(Meal Pass, 780 beneficiaries); Volvo Europa Truck (Sport &
culture, 2,420 beneficiaries)
France: Adecco (Gift Pass, 12,630 beneficiaries); Bouygues (Meal
Pass, 1,750
beneficiaries);
Mainguy (Meal Pass, 1,200 beneficiaries); Total (CESU, 1,200
beneficiaries)
Italy: Ferrovie Nord (Meal Pass, 1,500 beneficiaries); KPMG (Meal
Pass, 250 beneficiaries);
LENORD (Meal Pass, 2,000 beneficiaries)
Spain: Caixa* (Assistance Pass, 100,000 families); Altran (Meal
Pass, 120 beneficiaries)
Turkey: Sosyal Yardimlasma ve Dayanisma Vakfi (Assistance Pass,
1,760 beneficiaries)
UK: Citigroup (Education Pass)
Latin America :
Argentina: Aceitera General Deheza (Food Pass, 1,590
beneficiaries); Coca-Cola (Food Pass, 2,160 beneficiaries)
Brazil: Casa Bahia Comercial (Meal Pass, 1 770 beneficiaries);
Instituto Paulo Freire (Food Pass, 3,970 beneficiaries); Secretaria
Municipal de Saude (Gift Pass, 12,770 vouchers)
Chile: BBVA (Mobility Pass, 3,000 vouchers); Royal & SunAlliance
(Meal Pass, 200 beneficiaries)
Colombia: Castrol (Gift Pass, 1,200 vouchers); Teledatos (Mobility
Pass, 520 beneficiaries)
Mexico: Banco de Mexico (Meal Pass); Skyworks (Food Pass, 2,010
beneficiaries)
Peru: Caja Sur (Food Pass, 150 beneficiaries)
Venezuela: Cargill (Food Pass, 670 beneficiaries); M G H
Proteccion Integral (Food Pass, 1,260 beneficiaries); Venevision (Food
Pass, 1,700 beneficiaries)
Asia :
India: Bhillai Steel Plant (Gift Pass, 37,450 beneficiaries); Ford
(Gift Pass, 2,810 beneficiaries); JP Morgan Chase (Meal Pass, 1,950
beneficiaries); Prudential (Meal Pass, 630 beneficiaries);
Philippines: Accenture (Gift Pass, 5,000 beneficiaries)
Annex 2 : Consolidated financial statements
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(in millions of Euro) % change %
First First
Half Revenues Half Revenues
Fiscal Fiscal
2007 2006
------- -------- ------ ------- --------
------- -------- ------- --------
Revenue 6 819 100% 4. 2% 6 546 100%
------- -------- ------- --------
Cost of sales (5 812) -85. 2% (5 610) -85. 7%
Gross profit 1 007 14. 8% 7. 6% 936 14. 3%
Sales department costs (85) -1. 2% (75) -1. 2%
General and administrative
costs (567) -8. 3% (547) -8. 4%
Other operating income 12 2
Other operating expenses (3) (1) 0. 0%
------- -------
Operating profit before
financing costs 364 5. 3% 15. 6% 315 4. 8%
------- -------
Financial income 34 0. 5% 19. 3% 28 0. 4%
Financial expense (84) -1. 2% 5. 4% (80) -1. 2%
Share of profit of
associates 2 3
------- -------
Profit before tax 316 4. 6% 18. 7% 266 4. 1%
------- -------
Income tax expense (112) -1. 6% (102) -1. 6%
Net result from
discontinued operations - -
Profit for the period 204 3. 0% 164 2. 5%
Minority interests 6 0. 1% 4 0. 1%
------- -------
Group profit for the period 198 2. 9% 24. 2% 160 2. 4%
------- -------
Earnings per share (in Euros) 1.27 24. 1% 1.03
Diluted earnings per share
(in Euros) 1.25 23. 3% 1.02
*T
Consolidated Balance sheeet
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in millions of euro February August February
28, 31, 28,
2007 2006 2006
-------- ------ --------
Non-current assets
Property, plant and equipment 434 430 424
Goodwill 3 574 3 623 3 797
Other intangible assets 127 126 93
Client investments 142 146 151
Associates 34 36 35
Financial assets 83 75 74
Other non-current assets 14 18 22
Deferred tax assets 242 242 244
Total non-current assets 4 650 4 696 4 840
Current assets
Financial assets 15 17 6
Derivative financial instruments 45 42 37
Inventories 189 168 180
Income tax 32 17 32
Trade receivable 2 282 1 909 2 173
Restricted cash and financial assets related
to 468 423 375
the Service Vouchers and Cards activity
Cash and cash equivalents 935 1 042 822
Total current assets 3 966 3 618 3 625
------------------------------------------------------ ------ --------
Total assets 8 616 8 314 8 465
------------------------------------------------------ ------ --------
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February August February
28, 2007 31, 28,
2006 2006
---------- ------ --------
Shareholders' equity
Capital 636 636 636
Share premium 1 186 1 186 1 186
Undistributed net income 632 668 667
Consolidated reserves -313 -334 -296
Total group shareholders' equity 2 141 2 156 2 193
Minority interests 16 17 17
Total shareholders' equity 2 157 2 173 2 210
Non-current liabilities
Borrowings 1 794 1 852 1 727
Employee benefits 346 349 315
Other liabilities 78 101 94
Provisions 68 68 60
Deferred tax liabilities 53 49 40
Total non-current liabilities 2 339 2 419 2 236
Current liabilities
Bank overdraft 84 36 81
Borrowings 104 68 107
Derivative financial instruments 1 2 2
Income tax 102 80 129
Provisions 40 40 90
Trade and other payable 2 518 2 369 2 465
Vouchers payable 1 271 1 127 1 145
Total current liabilities 4 120 3 722 4 019
------------------------------------------------------ ------ --------
Total equity and liabilities 8 616 8 314 8 465
------------------------------------------------------ ------ --------
CASH FLOW
(in millions of Euro) First First
Half Half
Fiscal Fiscal
2007 2006
------ -------
Operating activities
Operating profit before financing costs 364 315
Non cash items
Depreciations 85 82
Provisions 4 (5)
Losses (gains) on disposals and other, net of tax (3) 2
Dividends received from associates 1 1
Change in working capital from operating activities (139) (191)
change in inventories (13) (2)
change in client and other accounts receivable (393) (393)
change in suppliers and other liabilities 163 133
change in Service Vouchers and Cards to be reimbursed 147 119
change in financial assets related to the Service
Vouchers and Cards activity (43) (48)
Interest paid (23) (23)
Interest received 13 9
Income tax paid (91) (97)
------ -------
Net cash provided by operating activities 211 93
------ -------
Investing activities
Tangible and intangible fixed assets investments (119) (85)
Fixed assets disposals 12 3
Change in Client investments (1) (9)
Change in financial investments 3 1
Acquisitions of consolidated subsidiaries (8) (27)
Disposals of consolidated subsidiaries 0 0
------ -------
Net cash used in investing activities (113) (117)
------ -------
Financing activities
Dividends paid to parent company shareholders (149) 0
Dividends paid to minority shareholders of
consolidated companies (7) (5)
Change in shareholders' equity (33) 18
Proceeds from borrowings 11 3
Repayment of borrowings (64) (198)
------ -------
Net cash provided by (used in) financing activities (242) (182)
------ -------
- ------ -------
Increase in net cash and cash equivalents (144) (206)
------------------------------------------------------ ------ -------
Net effect of exchange rates on cash (11) 19
Cash and cash equivalents, as of beginning of period 1 006 928
- ------ -------
Cash and cash equivalents, as of end of period 851 741
------------------------------------------------------ ------ -------
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Analysis of operating activities and geographic information (in
millions of euro)
------ ------ ------
Revenues First First
Half Half
Fiscal Change Fiscal
2007 2006
------ ------ ------
Food and Facilities Management services
North
America 2 890 -1. 0% 2 919
Continental
Europe 2 236 5. 9% 2 111
United
Kingdom
and
Ireland 720 8. 5% 663
Rest of the
World 766 13. 0% 678
Service Vouchers and Cards 211 18. 4% 178
Elimination of intragroup Revenues -4 17. 9% -3
------ ------ ------
total 6 819 4. 2% 6 546
------ ------ ------
------ ------ ------
Operating Profit First First
Half Half
(before corporate expenses) Fiscal Change Fiscal
2007 2006
------ ------ ------
Food and management services
North
America 163 7. 4% 152
Continental
Europe 115 11. 0% 103
United
Kingdom
and
Ireland 30 76. 8% 17
Rest of the
World 20 86. 7% 11
Service Vouchers and Cards 66 24. 4% 53
Holding Companies -30 43. 6% -21
------ ------ ------
total 364 15. 6% 315
------ ------ ------
*T