The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Jaafar Mestari - BNP Paribas Exane, Research Division - Analyst
: I have a couple, if that's okay. Firstly, just as a follow-up on new business and retention. Are you able to tell us broadly how much of the 17% organic
growth in Q3 was -- sorry, 18% in Q3 was like-for-like. And I'm asking because your retention and new business KPIs are indeed good and accelerating.
But as we all know, they tend to be a little bit forward-looking. And in H1, you still had a total organic growth that was lower than your like-for-like,
which suggests in H1 net new business was negative. So curious if we've seen that inflection point in Q3, where contribution from net new business
is actually already positive, or if we're going to see it in Q4 or if it takes a little bit longer to ramp up those good forward-looking retention and new
business numbers?
Question: Jaafar Mestari - BNP Paribas Exane, Research Division - Analyst
:
Question: Jaafar Mestari - BNP Paribas Exane, Research Division - Analyst
: Okay. And is that realistic that the Q4 net new business is strong enough to make it neutral for the full year? It was this minus 2 in H1 and you're
saying that will turn to positive in Q4.
Question: Jaafar Mestari - BNP Paribas Exane, Research Division - Analyst
: Very, very strong in...
Question: Jaafar Mestari - BNP Paribas Exane, Research Division - Analyst
: Super. And then my second question was really just a prompt for some background on the reorganization because there were so many things
happening around the same time when this was implemented. Marc Rolland, you were nominated as the next CFO in March '15, but then you
actually really only started as CFO after the reorganization was announced. It was announced in November and then you started in December and
then Sophie Bellon started in January '16. So it's quite debatable whose baby it was. But I think it's fair to say you're certainly aware the CFO who
has implemented it and then increased the cost of it in '17 and defended the benefits from saving costs and then moving to a global organization.
So I'm just curious. I don't know if it matters that much. I'm just curious what was the impetus initially and why you took so long to review that?
Question: Jaafar Mestari - BNP Paribas Exane, Research Division - Analyst
: Very clear. And I guess a part of that complicated situation in '15, '16 is that you had this reorganization? And then at the same time, you had the
EUR 200 million, which became EUR 245 million adaptation and simplification program. What's the overlap here? Was the global reorganization,
1 thing, which was a small part of that? Or was it a big chunk of the EUR 245 million directly related to the global organization. When you say no
material costs, is it realistic to revert something that costs as much with this time no material cost?
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JULY 01, 2022 / 7:00AM, EXHO.PA - Q3 2022 Sodexo SA Corporate Sales Call
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