Q3 2020 Sodexo SA Corporate Sales Call Transcript

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

Question: Simon LeChipre - MainFirst Bank AG, Research Division - Analyst : Yes. Simon LeChipre, MainFirst. Three questions, please. First of all, if you have any update to share from discussions you have with clients on working from home and which extent they want to implement this in the future. Secondly, if you could please come back on the key drivers of the better-than-expected drop-through for H2 compared to your initial 25% and any details on how it differs between On-site Services and Benefits & Rewards. That would be very helpful. And lastly, if you could also comment on the commercial activity during this second half in the development retention and if you have anything to share on retention in Healthcare in North America. You mentioned in the last call some contracts were still at risk.

Question: Jaafar Mestari - Exane BNP Paribas, Research Division - Analyst : I've got 3 questions, if that's okay. The first one is on cash burn. You're not showing detailed monthly amounts on Slide 6. It looks like you're probably around EUR 300 million of total cash burn between March, April and May. So looking at your guidance for H2 as a whole, is it the right way to look at it, to think that going forward, you definitely expect to be each months between breakeven and positive? So something like EUR 400 million positive free cash flow from here at the top end? Secondly, still on cash flow and specifically in terms of working capital in BRS. So for Q3, you said merchant redemption was slow. Now as many restaurants will start to reopen and to redeem again, what sort of working capital outflow have you assumed from BRS in your H2 guidance, please? And the last question, when you talk about synergies between OSS and BRS, you mentioned meal vouchers being issued to OSS clients in the Czech Republic. Is that something you could consider expanding more widely across geographies? Or are you just mentioning Czech Republic anecdotally? And is this already happening in your major BRS geographies?