October 2011 Vending in Compass Group UK&I The FM perspective Steve Davies – Managing Director, Support Services

Agenda Compass Group UK and Ireland - A few headlines Overview of Facilities Management Industry Vending in Compass – Now and the future

UK & Ireland Credentials/Compass Size and Scope The largest food and support services company in the world In the UK The majority of FTSE 100 companies are our clients. 60,000 employees. National coverage providing services to over 7000 sites. 96% Client Retention Rate. £1.95 billion annual turnover (2012) of which £500m is in Support Services, (FTSE 34) Single services to bundled Facilities Management and fully Integrated self delivery model. ISO 9001, ISO and OHSAS 18001, SIA accredited. Health and Safety our number 1 priority

Facilities Management Industry £100bn market place 3 million people employed in the profession in the UK Projected 17% growth in the next 5 years 80% of the UK building stock is outsourced to service providers to deliver FM services Services included – Cleaning, Security, Catering, M&E, Business and Office Services and Vending? (discuss)

Facilities Management/Support Services Definitions Single Services Delivery of one single service line to clients e.g. foodservice Multi Services (MS) (Sometimes called bundled) Bundling of multiple services i.e. >two service lines Integrated Facilities Management (IFM) Taking responsibility for Food, Soft & Hard services for clients Total Facilities Management (TFM) Taking responsibility for all services including real estate management

Service Delivery Model – a few examples of service providers Single Services Multi Services Providers (MS) (Sometimes called bundled) Integrated Facilities Management (IFM) Total Facilities Management (TFM) (Managing Agent)

Did you know? 1.460’000 vending machines in the UK 2.£1.6bn industry, 70% regionalised 3.Cashless is only 4.6% of all payment systems 4.It costs £17m for every coin change in the UK UK Vending industry…snapshot

Vending in Compass Group UK & I: a snapshot An integral part of our food services offer 13,000 vending machines Delivering vending solutions to 3 million consumers each day £80m revenue business unit, 25% in the private sector Portfolio of solutions available to our clients Strategic review underway to cement market leadership (more later)

Vending in Compass Group UK & I FM sector 1000 machines in place Delivering vending solutions in non-catered sites, supporting a 24 hour operation and as a support for the restaurant offer Key part of our client and consumer proposition Significant opportunity to develop and grow this part of our FM business

Solutions Portfolio of solutions available to our clients ranging from fully managed offers to self delivery: Core Hot beverages Cold beverages Snacking Combi machines Non-core (but growing) Hot Food (Steamplicity) Ice Cream Sandwiches Non-food (health & beauty distress items)

Strategic Way Forward... Understanding our consumers’ vending needs are key…(no one seems to hold this information) needs are key… Insights project commissioned with YouGov and Torch to understand our consumers vending needs now and for the future Engaging with over 5000 of our consumers in a structured and multi-layered insight programme 1.Talking to vending users and non-users 2.Understanding habits, motivations, triggers and barriers with Vending 3.Uncovering unmet ‘category’ needs in current solutions 4.Exploring innovative payments methods 5.Across all of our core sectors

FM a significant and growing part of the Compass UK & I business Vending solutions integral part of our FM offer, but real headroom for growth We’re investing in understanding our consumers’ future needs Some questions to consider Were your surprised to hear the size of the vending business in Compass? Should we share consumer and market insights and create a single knowledge bank? Are you prepared to develop innovation with us, not for us? What will success look like? Summary