A GLOBAL LEADER IN FOOD SERVICES H1 2017 highlights Underlying Change Revenue 11.6 billion +3.6% 1 Operating profit 894 million +5.2% 2 Operating margin 7.6% +20bps Earnings per share 37.9 pence +4.1% 2 Free cash flow 502 million +26.8% Interim dividend per share 11.2 pence +5.7% 1 Organic revenue growth 2 Constant currency Our focus is food Global Food Service Market (c. 200bn) We are in over 50 countries We have over 50K units and 500K employees Incremental approach to support services We have a well balanced geographic spread Fragmented and diverse customer base Large Operating on client premises Structural growth opportunity Group revenue (%) Region Country Service RoW 16 North America 58 USA 54 Food 84 Europe 26 UK 9 France 5 Canada 4 Germany 2 Brazil 3 Australia 3 Other Europe 10 Japan 3 Other RoW 7 Support Services 16
Market opportunity by region North America ( 60bn) Europe ( 75bn) RoW ( 60bn) Large Large Large Structural growth opportunity Revenue by contract type Our competitive advantage P&L (predominantly in North America) Fixed Price (Europe & Rest of World) Cost + (mostly in North America, some in Europe) Decentralised approach Sectorisation & sub-sectorisation Scale People & culture PEOPLE A simple framework to drive performance across the business Client Sales and Marketing Right sectors Improve performance of existing client base Right new clients, right terms Consumer Sales and Marketing Right propositions Drive price Drive volume Cost of Food Right quality Efficient sourcing and logistics In unit usage Unit Costs Efficient labour use Efficient labour cost Efficient unit overheads Above-unit Costs Right support & governance Efficient management structure Effective cost control 2
revenue by sector (%) North America Europe RoW 28 33 2 57 6 9 14 30 8 5 26 15 14 15 38 Business & Industry Sports & Leisure Healthcare & Seniors Defence, Offshore, Remote Education Geographic financials by region H1 2017 North America Europe RoW Revenue ( m) 6,792 3,023 1,802 Organic growth (%) 7.1 1.6 (5.1) Operating profit ( m) 580 226 113 Margin (%) 8.5 7.5 6.3 H1 2016 Revenue ( m) 5,418 2,722 1,526 Organic growth (%) 8.3 3.7 1.7 Operating profit ( m) 461 201 97 Margin (%) 8.5 7.4 6.4 As at: 30/9/16 30/9/16 30/9/16 ROCE (%) 29.5 20.8 1 25.1 1 Excluding goodwill from the Granada merger in 2000 Operating cash flow m H1 17 H1 16 2016 2015 2014 2013 Operating profit 894 724 1,445 1,296 1.245 1,265 Depreciation and amortisation 239 189 395 340 317 299 Net capital expenditure (325) (251) (549) (476) (445) (434) Net cash flow 808 662 1,291 1,160 1,117 1,130 Net cash flow conversion 90% 91% 89% 90% 90% 89% Trade working capital (78) (83) 12 (17) (14) 102 Provisions (19) (5) (10) (20) 11 (35) Operating cash flow 711 574 1,293 1,123 1,114 1,197 Operating cash flow conversion 80% 79% 89% 87% 89% 95% Free cash flow 502 396 908 722 737 834 Free cash flow conversion 56% 55% 63% 56% 59% 66% Note: Based on underlying performance, see definitions on page 54/55 of the 2017 HY presentation. ROCE 19.4% 19.1% 19.3% 19.1% 3
North America sector growth opportunity 30 Market size (US$ bn) 20 10 70% 75% 66% 47% 0 Business & Industry Healthcare & Seniors Education Sports & Leisure Compass Large Note: Market data figures based on Compass Group management estimates North America: sub-sectorisation driving growth 20% 15% 10% 5% 0% -5% Total North America -10% Business & Industry Sports & Leisure Healthcare & Seniors Education Defence, Offshore & Remote Rest of World: improving trend Offshore & Remote organic revenue growth 15% 5% -5% -15% 4-25% 2012 2013 2014 2015 H1 2016 H2 2016 Q1 2017 Q2 2017
Our track record (organic revenue growth %) 10 YR CAGR 4.4% 5.0 5.9 3.2 5.4 5.4 4.3 4.1 5.8 5.0 3.6 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 H1 2017 Operating margin (%) 5.1 5.8 6.5 6.9 6.9 6.9 7.1 7.2 7.2 7.2 7.6 Note: Based on underlying performance at reported exchange rates, see definitions on page 54/55 of 2017 HY presentation. Ongoing priorities for uses of cash CAPEX Appropriate investment: 2.5-3.0% of sales DIVIDEND Growing in line with constant currency EPS Efficient balance sheet Strong investment grade credit rating Target net debt/ EBITDA 1.5x M&A Required returns > cost of capital by the end of year 2 RETURNS TO SHAREHOLDERS Capital expenditure (as a % of revenue) Appropriate investment c. 2.5-3.0% of revenue 4.5 3.9 3.6 3.3 2.9 2.5 2.7 2.7 2.8 2.9 2.9 1.9 1.9 2.1 2.3 2.3 2.3 1.7 2001 2002 2003 2004 2005 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 H1 2017 UK GAAP IFRS 5
A diverse portfolio of B2B brands in North America Some of our clients around the world Contact information Sandra Moura, Head of Investor Relations sandra.moura@compass-group.com Tel: +44 (0)1932 573 000 www.compass-group.com Forward Looking Statements Certain information included in this document is forward looking and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward looking statements. Forward looking statements cover all matters which are not historical facts. Forward looking statements are not guarantees of future performance. All forward looking statements in this document are based upon information known to the Company on the date of this document. Additionally, forward looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with its legal or regulatory obligations, the Company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. Nothing in this document shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws. 6