Sodexo: Solid Performance in Fiscal 2011

• Revenues up + 5.4%, Including + 5.2% Organic Growth
• Operating Profit up + 10.6% and Net Income Increased by + 10.3%
• Proposed Dividend of 1.46 Euro Per Share: + 8.1%
• Net Cash Provided by Operating Activities: € 847 Million
• Solid Financial Ratios: Year End Net Debt Only 15% of Shareholders’ Equity, Enabling Development to Be Self-Financed

Regulatory News:

Sodexo (PARIS:SW) (OTCBB:SDXAY): At the Board of Directors meeting held November 7, 2011, chaired by Pierre Bellon, Sodexo CEO Michel Landel presented the company’s Fiscal 2011 performance.

Fiscal 2011 performance
millions of euro				Year ended August 31										Change excluding currency impacts					Currency impacts					Total change
				2011					2010
Income statement highlights
Revenues				16,047					15,230					+ 5.0	%				+ 0.4	%				+ 5.4	%
Organic growth				5.2	%				2.5	%
Operating profit				853					771					+ 10.4	%				+0.2	%				+ 10.6	%
Operating margin				5.3	%				5.1	%
Group net income				451					409					+ 9.3	%				+1.0	%				+ 10.3	%
Earnings per share (in euro)				2.95					2.64					+ 10.6	%				+ 1.1	%				+ 11.7	%
Dividend per share (in euro)				1.46					1.35					+ 8.1	%
Financial structure highlights
Net cash provided by operating activities				847					1,006
				As of August 31, 2011					As of August 31, 2010
Gearing				15	%				24	%

Commenting on the results, Sodexo CEO Michel Landel said:

"In a continued tense environment, Sodexo achieved good results for the fiscal year ended August 31, 2011 as a result of the commitment of all our teams throughout the world. I thank them for their efforts.

These results demonstrate the relevance of Sodexo's unique positioning and development strategy. We have become an integrator of quality of life services and hold leadership positions in high potential economies such as the BRIC countries. We are continuing to invest for the future in areas such as human resources and talent development and the implementation of our technical service offerings. While we remain prudent given the increasingly uncertain economic context, the objectives announced today demonstrate our confidence in our strategy, our employees and our financial model."

Revenue growth of 5.4%

Sodexo’s consolidated revenue grew by 5.4% overall to 16 billion euro in Fiscal 2011, with organic growth of 5.2%.

This level of organic growth is double the figure achieved in Fiscal 2009 and Fiscal 2010, and exceeds the targets announced at the beginning of the year.

Organic growth accelerated during the course of the year, in particular as a result of the following:

• the success of Sodexo’s offerings, and in particular its Facilities Management services, which in Fiscal 2006 represented only 18% of Group revenue, rising to 25% in Fiscal 2011. In fact Facilities Management services grew three times as fast as Foodservices in the course of the year.
• Sodexo’s solid positions in the Rest of the World, and in particular its rapid development in the emerging markets.

Revenues for On-site Service Solutions increased + 5.2% to 15.3 billion euro, with organic growth increasing +5.1%.

Fiscal 2011 highlights by client segment included:

• organic growth of 6.7% in Corporate, compared with 2% in Fiscal 2010; this reflects solid development for Sodexo in emerging markets and the significant impact of the phasing in of comprehensive service solutions contracts in the Justice, Defense and Corporate segments. Sodexo registered 17.9% organic growth in Justice, 6.5% in Defense and 15.9% in Remote Sites;
• 3.5% growth in Health Care and Seniors, resulting from an extension of the services supplied to existing clients in North America, offset by a short-term decline in outsourcing in Europe and the United Kingdom;
• a 3.4% increase in Education resulting in particular from continuing growth in university enrollments in North America.

Most of the 6.9% organic growth in Motivation Solutions resulted from the excellent performance of Sodexo’s Latin American teams, with issue volume rising to 13.7 billion euro, up nearly 9% (excluding currency translation effects) over the prior year.

Sodexo’s key performance indicators were as follows:

• the 94% level of client retention was comparable to the previous year;
• the 4.3% growth on existing sites compares to 2% for the prior year. The acceleration results partially from the impact of rising food inflation;
• the rate of development, or new contract wins, was 7.4%;
• the employee retention rate reached 61.9% with a level of 83.6% for site managers (compared with 82.9% in the previous year);
• the number of training hours provided was 4.8 million hours for all employees worldwide, an increase of more than 150,000 hours over the previous year;
• 85% of employees consider Sodexo to be a better employer than its competitors according to the most recent employee engagement survey, conducted in Fiscal 2010.

Operating profit increases 10.6%

Operating profit was 853 million euro, an increase of 10.6%. Excluding currency effects, revenues rose 10.4%, representing an improved operating margin of 0.20% over the previous year.

• For On-site Service Solutions:
  Operating profit increased 8.6% (excluding currency effects), mainly a result of:
  • improved profitability in North America, rising from 4.8% to 5.1%;
  • growth in volumes in the Rest of the World.
• Motivation Solutions:
  Operating profit rose by 20% at constant exchange rates, thanks to higher volumes and productivity gains. The operating margin for this activity increased from 32.4% in Fiscal 2010 to 36.5% in Fiscal 2011, thereby reaching in advance the medium-term objective set by the Group.

Increase in net income and earnings per share

Group net income was 451 million euro compared with 409 million euro for the previous year, an increase of 10.3% (+ 9.3% at constant exchange rates). Growth was slightly lower than the increase in operating profit, a result primarily of a higher effective tax rate, which rose from 33% to 35.4%.

Earnings per share was 2.95 euro, an increase of 11.7%. The increase is higher than the rise in net income because of an increase in the number of treasury shares. These shares are excluded from the calculation of earnings per share.

Dividend

Given this good performance, the strong cash generation during the year and its full confidence in the future, the Sodexo Board of Directors will propose a dividend of 1.46 euro per share at the January 23, 2012 General Shareholders’ Meeting, an increase of 8.1% over the dividend paid in Fiscal 2010. This distribution represents a payout ratio of around 50% of Group net income and a yield of 2.8% based on the share price of 51.82 euro (as of August 31, 2011).

Board of Directors

The Board also approved the resolutions to be proposed to the General Shareholders’ Meeting, including the renewal for a period of three years of the mandates of Sophie Clamens, Nathalie Szabo and Bernard Bellon and the appointment as a director of Francoise Brougher. A citizen of France and the U.S., Ms. Brougher joined Google in California in 2005 and is currently responsible for global advertising sales and operations for the small and medium companies sector. As a member of the Board, she will contribute her knowledge of new information and communication technologies.

A financial model that generates cash

Net cash provided by operating activities was 847 million euro compared to 1,006 million euro generated in Fiscal 2010 which had benefited from exceptional cash flows in Motivation Solutions, principally following the start-up of the Ecopass service offering in Belgium.

As of August 31, 2011, net debt was 376 million euro compared with 656 million euro as of August 31, 2010, representing 15% of shareholders’ equity compared with 24% as of August 31, 2010. Gross debt repayment capacity as of August 31, 2011 represented around 3.2 years of operating cash flow.

During the year, Sodexo completed two refinancings:

• a private placement with U.S. investors (United States Private Placement) for 600 million USD at a fixed rate;
• a multi-currency line of credit for an amount equivalent to 1.1 billion euro.

These agreements have enabled Sodexo to secure the refinancing of debt maturing in 2012 and to extend the maturity of its borrowings.

Post-closing events

Sodexo announced September 6, 2011 the acquisition of 100% of Puras do Brasil, for an enterprise value of approximately 525 million euro. Created 30 years ago, Puras do Brasil is the No. 2 on-site service solutions provider in Brazil and generates revenues of around 0.5 billion euro. With this acquisition, Sodexo becomes the leader in on-site service solutions in Brazil, a rapidly growing market.

On September 22, 2011, Sodexo also completed the acquisition of Lenôtre in France. The acquisition will enable Sodexo to develop its Prestige business portfolio in France and abroad, as well as to further enhance its expertise in luxury gastronomy.

On November 8, 2011, Sodexo concluded an agreement in the U.S. to acquire 100% of Roth Bros, a company specializing in technical maintenance services. Roth Bros, founded in 1923, has a nationwide network coverage and designs, manages and delivers services for HVAC, facilities automation, monitoring and maintenance and energy management services. Roth Bros generates revenues of around 100 million USD.

Following these three acquisitions and on a pro forma basis, the Group's financial ratios remain solid: the ratio of net debt to equity is around 40%.

Lastly, on September 15, 2011, Sodexo, Inc. and the Service Employees International Union (SEIU) announced a settlement agreement under which SEIU agreed to end a public campaign against Sodexo that had been ongoing for nearly two years. Sodexo agreed to dismiss its civil suit filed in March 2011 in the U.S. District Court of the Eastern District of Virginia.

Fiscal 2012 objectives

At the November 7, 2011 meeting of the Board of Directors, Sodexo CEO Michel Landel presented the Fiscal 2012 and medium-term outlook.

He emphasized the need for prudence in the increasingly uncertain macro-economic climate, notably in western countries. The accumulated debt of governments and rising unemployment exert significant pressure on economic activity in both the public and private sectors.

In this context, Group management and all of the Sodexo teams are fully mobilized to:

• decrease operating costs and thus improve productivity at all levels, notably through sharing resources and centralizing processes, and
• limit the effects of food price inflation.

Michel Landel also reminded the Board of Directors that in Fiscal 2012 Sodexo will be providing services in connection with important sporting events (notably the Rugby World Cup, which took place in October 2011 and the London Olympic Games, which will take place in July 2012).

The current fiscal year will also require significant investment to facilitate the integration of Puras in Brazil, as well as Lenôtre in France and Roth Bros in the United States. These investments will weigh slightly on the Group’s short term operating profitability.

In light of the above, for Fiscal 2012:

• Sodexo has set an objective for Fiscal 2012 of growth in organic revenues of between 5% and 8% ,
• In addition, the Group expects a contribution to consolidated revenues of approximately 4 percentage points from recent acquisitions (Puras do Brasil, Lenôtre and Roth Bros),
• The Group has also set an objective of an increase in operating profit of around 10% (excluding exchange rate effects and the one-time effects of an adjustment to post-employment benefit plan costs in the United Kingdom⁽¹⁾ ).

In the medium term:

• Sodexo confirms its objective of an annual average consolidated revenue growth of 7%, and
• encouraged by recent progress, the Group is targeting achieving an operating margin of 6.3% in four years time.

Lastly, Michel Landel, CEO, concluded by noting Sodexo’s considerable strengths:

• its independence;
• a global footprint encompassing 80 countries and notably uncontested leadership in all of the BRIC countries (Brazil, Russia, India and China) which represent markets with high economic growth;
• a well-diversified portfolio of clients (Corporate, Sports and Leisure, Health Care, Seniors, Education, Defense and Justice);
• an ever broader integrated offer for quality of life services, which allows it to help its clients improve their performance;
• a strong culture and values shared by all of the teams;
• a rich and diverse pool of talent, and
• an excellent financial model.

These strengths enable Sodexo to look forward with confidence and to maintain its investments, particularly in human resources development and strengthening its expertise.

(1) In conformity with new regulations in effect in the United Kingdom, the Group decided at the end of October to calculate future price indexation using the consumer price index (CPI), thus replacing the retail price index, in determining retirement benefits that Sodexo UK will be required to pay to certain members of its retirement plan. The retrospective effect of this change will result in a favorable adjustment to operating profit in the first half of Fiscal 2012.

Analysts briefing

SODEXO will hold a briefing today at 9:00 a.m. at the Capital 8 Conference Center (32, rue Monceau, Paris 8^ème ) to comment on the Fiscal 2011 results. The briefing also can be followed via webcast on www.sodexo.com

Future financial communications

• First quarter Fiscal 2012 revenues: January 11, 2012
• General Shareholders’ Meeting: January 23, 2012
• First half Fiscal 2012 results: April 19, 2012.

About Sodexo

Sodexo, world leader in Quality of Daily Life Solutions

Quality of Life plays an important role in the progress of individuals and the performance of organizations. Based on this conviction, Sodexo acts as the strategic partner for companies and institutions that place a premium on performance and employee well-being, as it has since Pierre Bellon founded the company in 1966. Sharing the same passion for service, Sodexo’s 391,000 employees in 80 countries design, manage and deliver an unrivaled array of On-site Service Solutions and Motivation Solutions. Sodexo has created a new form of service business that contributes to the fulfillment of its employees and the economic, social and environmental development of the communities, regions and countries in which it operates.

Key figures (as of August 31, 2011)
	16 billion euro consolidated revenue
	391,000 employees
	33,400 sites
	80 countries
	50 million consumers served daily
	21 st largest employer worldwide
	8.4 billion euro market capitalization (as of November 8, 2011)

This press release contains statements that may be considered as forward-looking statements and as such may not relate strictly to historical or current facts. These statements represent management's views as of the date they are made and Sodexo assumes no obligation to update them.

Appendix 1

Analysis of activities and geographic zones

1. On-site Service Solutions

North America

Revenues in North America were 6 billion euro, an increase of 2.6%, which includes organic growth of 4.3% net of an unfavorable currency effect of 1.6%.

At 1.8%, organic growth in the Corporate segment has improved compared to the previous two years, despite the lack of a turnaround in employment at large corporations and unchanged participation in foodservices programs on sites. The startup of comprehensive service solutions contracts for clients such as GlaxoSmithKline, Henkel, Colgate and British Aerospace made a major contribution to the return to growth during the year.

Significant recent contracts won include new comprehensive service contracts for clients such as Bristol Myers Squibb (6 sites across several U.S. States), ADP (California and Utah), General Electric Aviation (Ohio), Discover Financial Services, and Guardian Life Insurance Company of America.

In addition, Sodexo renewed its partnership with the U.S. Marine Corps, with two contracts covering 51 military bases in the United States. More than a third of these contracts with the Marines will be executed in partnership with companies selected for their commitment to social progress and diversity.

In Health Care and Seniors , organic growth of 5.9% accelerated compared to the prior year (+2.9%). This reflects the excellent client retention rate achieved in Fiscal 2010 and Fiscal 2011, and successful broadening of the service offering to a number of hospital and retirement home chains. Comfort Keepers, a provider of non-medical in-home services for seniors, also achieved strong revenue growth and opened new franchises.

New contract wins confirmed the relevance of Sodexo’s comprehensive service offerings in this segment, and include Saint Vincent Medical Center (Los Angeles, California), Jackson Memorial Hospital (Miami, Florida), Crouse Hospital (Syracuse, New York), Rideout Memorial Hospital (Marysville, California), Crozer Chester Medical Center (Pennsylvania), and Bethesda Memorial Hospital (Florida).

Organic growth in Education was 4%, the result of increased student enrolment at university campuses and schools and the positive impact of new contracts, in particular the one for the 136 schools in the Detroit Public School District in Michigan. For this contract, one of the Group’s largest in the Education segment in the United States, Sodexo has been selected to provide technical maintenance, building repair, ground maintenance and cleaning services.

Sodexo won numerous contracts during Fiscal 2011, notably including Garvey School District (Rosemead, California), Delgado Community College (New Orleans, Louisiana), University of Missouri (Saint Louis, Missouri), and Utica College (Utica, NY).

Operating profit was 304 million euro, up 10.3% compared to the prior year, excluding currency effects. This increase primarily reflects the following factors:

• good control of the cost of accident, health and benefit plans, and
• on-site productivity gains.

In addition, a non recurring charge of 15 million euro had been recognized in the prior fiscal year.

The operating margin rose by 0.3% to 5.1%, compared to 4.8% for Fiscal 2010.

Continental Europe

Revenues in Continental Europe increased by 3.5% to 5.5 billion euro as follows:

• organic growth: 2.9%;
• currency effects: 0.7%.

Despite the continuing uncertain economic environment, Corporate returned to organic revenue growth at 4.4%. This performance reflects the relevance of the Group’s strategic positioning and the new comprehensive solutions contracts started in 2010, including for the Department of Justice in France (for 27 corrections facilities). It also reflects the impact of strong new business trends in Germany, Spain and Russia.

Numerous contracts were won during the year including in particular the important Public-Private Partnership to build, equip, operate and maintain the future French Department of Defense headquarters in Paris, the “Balard” project, scheduled to be operational in December 2014. Other recent contracts also include the RIE Tour 9 and the Department of Defense for 5 sites (at Houilles, Valence, Lyon Carnot, Lyon Bellecour and Grenoble) in France, Sirius Business Park Siemens and the M. Pire building complex in Germany, Barcelona’s Catalan Institute of Finance and the Museo del Prado in Madrid in Spain, Kraft Foods in Belgium, and Aga AB, Lidingö in Sweden.

Organic revenue growth in Health Care and Seniors was 0.8%, reflecting moderate sales growth as a result of the momentary slowdown in outsourcing in many countries during the year.

Business wins during the year include Maasstad Ziekenhuis and Jeroen Bosch Ziekenhuis, in the Netherlands, the Clinique Belledone at Saint-Martin d’Hyères and the Association pour Adultes et Jeunes Handicapés (APAJH) in the Val d’Oise (6 sites) in France, the Pisa Hospital (AOUP) and Ospedale San Giuseppe Grupo Multimedica in Italy, and the Tilkka Hospital in Finland.

Organic growth in Education was 1.2%. Business wins in Sweden, with schools for the cities of Helsingborg and Katrineholm, and in Italy, with the University of Pavia, offset moderate sales development in France at the beginning of the year. At year-end, however, Sodexo renewed and broadened its services to the 314 schools of the City of Marseille, and was also awarded a contract to supply the Oulu Region Joint Authority for Education (OSEKK) in Finland.

Operating profit increased by 14 million euro, up 5.6%, to 247 million euro, excluding currency effects. Good control on administrative costs was a major contributing factor to this growth.

The operating margin improved by 0.1%, from 4.4% in Fiscal 2010 to 4.5% in Fiscal 2011.

United Kingdom and Ireland

Revenues in the United Kingdom and Ireland were 1.2 billion euro, down 1.1% at constant exchange rates.

Despite the steady decline in demand for foodservices, Sodexo returned to growth in Corporate, with an increase of 0.3%, thanks to its well-adapted offering of integrated services for clients such as Glaxo Smith Kline, Johnson & Johnson and Pilkington.

In addition, Sodexo signed a 5-year renewal of the hospitality contract for Royal Ascot and commenced the preparation of contracts for the Rugby World Cup in October 2011 and for the 2012 Olympic Games in London.

Revenues in Health Care and Seniors were down 7.9% for the year (excluding exchange rate effects and changes in the scope of consolidation), resulting from:

• The decision made in the prior year not to renew the contract for part of the services outsourced to Sodexo by Kings Hospital; and
• weak sales growth, as public-sector clients in particular delayed decision-making at the beginning of the year.

The 2.9% organic revenue growth in Education reflects successful development with universities, for example in the management of accommodation services on the Solent, Medway, Lincoln and Southampton campuses. This trend compares very favorably with the 6.5% decline experienced in Fiscal 2010.

Recently signed new contracts notably include Birmingham City University and New College Swindon.

Operating profit was 59 million euro, up 1.8% excluding currency effects. This increase reflects significant on-site productivity gains, especially in the Health Care and Justice services segments. At the same time, costs were incurred during the year in preparing for the major Fiscal 2012 sporting events contracts, namely the Rugby World Cup and the London Olympics.

The operating margin increased by 0.1% from 4.6% in Fiscal 2010 to 4.7% in Fiscal 2011.

Rest of the World

Revenues in the Rest of the World (Latin America, Middle East, Asia and Australia and Remote Sites) were 2.6 billion euro.

The pace of growth continued to accelerate throughout the year, and organic growth reached 15.9%.

• Revenues in Corporate grew by 16.3%, compared to 7.7% in Fiscal 2010. This acceleration occurred in all geographic regions:

• In Latin America, business wins were numerous, including with Natura, Petrobras Fafen and Vale Norte in Brazil, with mining and oil and gas clients such as Compañía Minera Zaldivar S.A, Excon and SQM in Chile, Xstrata Fuerabamba, Vale FM, Plus Petrol Norte and Southern Peru Copper Corp./Cuajone-Toquepala in Peru. Growth in on-site activities was also driven by the high level of industrial activity and a high rate of food inflation.
• In China and India, where Sodexo holds undisputed leadership positions, the Group signed a large number of contracts, including with Volkswagen India, Pune and Renault Nissan, in India, and with Bao Steel (4 sites), Andrew Telecommunications, Toshiba Elevator, Shanghai, Nokia Beijing and Dongguan, in China.
• Sodexo also achieved multiple business wins in Remote Sites. In Australia, for instance, Sodexo won contracts with Rio Tinto Pilbra Iron, Western Turner, Karara Mining and the Freeport McMoran Copper and Gold mine, and TFM in the Democratic Republic of Congo.

• Growth in Health Care and Seniors and in Education in the Rest of the World was 12.4% and 10.7%, respectively. Sodexo’s expertise in these segments is starting to pay off, with the signature of new contracts such as those with the Medanta-The Medicity hospital in India, Shenzhen TCM Hospital in China, Queen Sirikit Medical Center in Thailand, and Emirates National School in the United Arab Emirates.

Operating profit in the Rest of the World increased 17.1% at constant exchange rates to 84 million euro. This increase reflects growth in volumes and substantial productivity gains, which more than offset significant inflationary pressures in a number of countries. Moreover, the Group continued to invest in training and human resources development in these countries, given their strong potential in the medium term, as well as to reinforce its competencies in technical maintenance services.

The operating margin of 3.2% was stable compared to that of the prior fiscal year.

2. Motivation Solutions

Issue volume (face value multiplied by the number of vouchers and cards issued) was 13.7 billion euro. Organic growth in issue volume was 8.8%, with an additional favorable 1.2% currency translation effect.This issue volume comprised the following:

• 6.2 billion euro in Latin America, with 12.2% organic growth, and
• 7.5 billion euro in Europe and Asia, with 6.2% organic growth.

Strong growth in Latin America resulted from a combination of new customer wins, business synergies resulting from the broadening of existing client service offerings and the increased face value of vouchers.

In Europe, this performance includes an increase of more than 10% in vouchers issued for the Belgian Bureau of Labor (ONEM), and from faster growth in France thanks to a successful sales drive.

Revenues totaled 717 million euro, with 6.9% organic growth.

In Latin America, which accounts for 53% of revenues, organic growth was particularly solid at 13.6%. This included an increase in the number of beneficiaries and of the face value of vouchers, business wins such as Fundacao, Petrobras, Universidade Estado do Amazonas in Brazil, Servicio Nacional Integrado De Administraction Aduarena y Tributaria in Venezuela, and BBVA Comercializadora in Chile, and the positive impact of interest rate rises, especially in Brazil.In Europe and Asia, organic growth of 0.4% resulted from:

• good sales momentum in France, thanks in particular to the success of the CESU (service voucher) offerings;
• a slight decrease in revenues in Central Europe, albeit at a lesser rate than the prior year;
• some persistent pressures on client commissions as a result of strong competition in some countries and on incentive programs.

Recent business wins include in particular the global Amadeus (Incentive) contract, a major contract for Life Insurance Corp (a leading public life insurance company in India), Hewlett-Packard and Gas Authority of India (India), Coca Cola and KGHM Polska in Poland, Audi Motor in Hungary, and Santander Consumer Bank in Germany.

The difference between growth in issue volume and that of revenues, chiefly in Europe, resulted from the strong growth in issue volume on the popular ONEM contract in Belgium. This growth does not translate into revenue growth in the same proportion because of the size and structure of the contract.

Operating profit totaled 262 million euro, a 21.9% increase compared to that of Fiscal 2010. Excluding exchange rate effects, operating profit rose 20%, reflecting the operating leverage arising from increased volumes and a more efficient production process. These productivity gains principally reflected synergies achieved in Brazil over the past three years following the integration of VR, but also resulted from the success of action plans in Europe.

The activity’s operating margin was 36.5%, versus 32.4% in the prior year, enabling Sodexo to achieve its medium-term objective in this activity already as of Fiscal 2011.

3. Corporate expenses

Corporate expenses were 86 million euro, an increase of 19 million euro over the prior year. This increase stems mainly from acquisition costs and from the 10 million euro provision covering two years of the Profit Sharing Bonus, pursuant to a law introduced in France on July 28, 2011 for companies increasing dividend distributions in France.

Appendix 2

Full Year financial statements

Statement of income
(in euro million)				Fiscal 2011										Variation					Fiscal 2010
				€M					% Revenues										€M					% Revenues
Revenue				16,047					100	%				5.4	%				15,230					100	%
Cost of sales				(13,529	)				- 84.3	%									(12,846	)				- 84.3	%
Gross profit				2,518					15.7	%				5.6	%				2,384					15.7	%
Sales department costs				(242	)				- 1.5	%									(226	)				- 1.5	%
General and administrative costs				(1,408	)				- 8.8	%									(1,358	)				- 8.9	%
Other operating income				10															12
Other operating expenses				(25	)				- 0.2	%									(41	)				- 0.3	%
Operating profit before financing costs				853					5.3	%				10.6	%				771					5.1	%
Financial income				57					0.4	%									62					0.4	%
Financial expenses				(204	)				- 1.3	%									(212	)				- 1.4	%
Share of profit of associates				15					0.1	%									14					0.1	%
Profit before tax				721					4.5	%				13.5	%				635					4.2	%
Income tax expense				(250	)				- 1.6	%									(205	)				- 1.3	%
Net result from discontinued operations
Profit for the period				471					2.9	%				9.5	%				430					2.8	%
Minority interests				20					0.1	%									21					0.1	%
Group profit for the period				451					2.8	%				10.3	%				409					2.7	%
Earnings per share (€)				2.95															2.64

Consolidated balance sheet

ASSETS

EQUITY AND LIABILITIES

(in euro million)

August 31, 2011

August 31, 2010

(in euro million)

August 31, 2011

August 31, 2010

Shareholders' equity

Common stock

628

628

Additional paid-in capital

1,109

1,109

Retained earnings

1,026

783

Consolidated reserves

(228

)

187

Total Group shareholders' equity

2,535

2,707

Non-current assets

Non controlling interests