Half Year 2023 Sodexo SA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jaafar Mestari - BNP Paribas Exane, Research Division - Analyst : I've got 3, please, if that's okay. So firstly, with your updated assumptions, could you walk us through the components of the 11% organic growth guidance now? Is the pricing now more like 6% net new business, sounds like maybe 1.5% for the full year. Does that mean the same site volumes are also going to be a touch stronger than you were expecting, definitely a 3%, 6% to 3% plus 1.5%. And then on the full year margin guidance, just to clarify, when you reiterate around 5.5%, is there any chance that the full year margin is below 5.5%? And just lastly, a relevant capital structure. What is this for each business? What sort of net debt to EBITDA do you believe each business can sustainably have? And on the demerger, how will you allocate debt between the 2 businesses? And then over time, how much more leverage do you think each of them can take?

Question: Jaafar Mestari - BNP Paribas Exane, Research Division - Analyst : Just on the organic growth bridge, if we can take those elements one by one, maybe come up quite getting to 11%. So 11% for the full year, that's ex testing centers. So actually, you need to do 12% ex testing centers. Then net new business is going to be below 2%, isn't it? But let's take out 2% on the 10%. And then that 10% inflation, you're not quite saying fixed, you're saying more than 5%. So I guess my question is, is that...

Question: Jaafar Mestari - BNP Paribas Exane, Research Division - Analyst : I'm sorry. I was trying to walk through the 11% organic growth guidance. So 11% is ex testing centers. So you actually need to do 12%. And then net new business, you're talking about 2%. But mechanically in the full year, it's going to be a little bit below that, right? But let's take out 2%, I still need 10%. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 05, 2023 / 7:00AM, EXHO.PA - Half Year 2023 Sodexo SA Earnings Call And then inflation you're not quite saying fixed. You're saying above 5%. So does that mean that same-site volumes have been significantly stronger than expected? I need something like 4.5% in same side volumes to get to 11%? 11%, plus 1 minus 2.

Question: Jaafar Mestari - BNP Paribas Exane, Research Division - Analyst : I'm sure it works. Maybe in isolation on like-for-like, do you have an estimate of where you are on current same-site volumes compared to...