Sheffield Hallam UniversityAlumni Event,11th November

Ian SarsonGroup Managing Director UK&I

Agenda

• My Career

• Compass Group

• Our UK and Ireland Business

• My first 7 months at the helm

• Any Questions

Who is Ian Sarson?

• Group Managing Director, Compass Group UK & Ireland

• OND/HND Student (1984) in Hotel,Catering and Institutional Mgt

• 30 years in the hospitality industry

• International experience

• Visiting Fellow at SHU (4th year)

• Married with two daughters (1 studying at SHU!!)

• 7 years with Compass

• Chair of Compass International Healthcare Forum

Compass Group PLC

Revenue >£14 bn (FY 2010)

Over 40,000 client locations

Portfolio of market leading sector brands

386,000 employees globally

Position 35th in the FTSE 100 Index

£5.6m Worldwide charitable donations

2009

4 billion meals a year served

Global reach in more than 50 countries

A world leading food services and support services company

90 of fortune 100 companies are our

clients

Our Vision

“To be a world-class provider of contract food and support services renowned for our great people,

our great service and our great results.”

Delivering our vision

• Attracting and retaining great people

• Delivering great food, services and events

• Driving relentlessly to be the lowest sensible price provider

• Empowering our teams and delivering our promises

• Setting the highest standards for health, safety, corporate governance and the impact we have on our communities and the environment

Compass Coverage

Group

£11,440m

2007/8: £10,268m

Underlying operating profit

£720m

2006/7: £583m

North America

£4,553m

2007/8: £4,206m

Underlying operating profit

£311m

2006/7: £264m

Continental Europe

£3,021m

2007/8: £2,553m

Underlying operating

profit

£197m

2006/7: £151m

United Kingdom

£1,926m

2007/8: £1,931m

Underlying operating profit

£108m

2006/7: £107m

Rest of the World

£1,940

2007/8: £1,578m

Underlying operating

profit3

£104m

2006/7: £61m

2008/9 Audited Accounts

Compass Group UK & Ireland

UK & Ireland Revenue - £1.8 bn (FY 2009)14% of Compass Group Revenue

Over 7,000 sitesMulti service contracts

make up 30+%of our income

56,000 employees

4th Largest Security company in the UK

Two Michelin Star restaurants

Leading provider of Hospitality in Sports and

Leisure

3 million transactions per day

1,200 retailoutlets in the workplace

Compass Group is theUK and Ireland market leader

Our market share is the size of our top two competitors combined

2nd largest cleaner in the NHS

Business and Industry

FineDining

Healthcare

SeniorLiving

Education

Defence and Offshore

Sports and Leisure

Corporate Hospitality

VenueSales

Specialist Event Catering

Services are provided by our Sectors

Security

Some new and retained accounts for this year

DMGT

Some of Our Sports and Leisure Portfolio

Corporate Responsibility

Run our business to the highest ethical

standards

Support the good health and wellbeing

of our customers

Reduce our impact on the world in which

we live

Make a positive contribution to the

communities in which we live and

work

We are committed to growing responsibly with a clear corporate vision

and strategy.

We measure our performance against our

five pillars

People Agenda

• 11,500 face to face training days this year• E-learning – 19,330 completed One Compass Welcome, • 12,300 completing and Health and Safety e-learning • 4,600 NVQ/ apprentices this year• 700 unit managers hired centrally this year• MFV 555 trained last year - MFA 500 to be trained

before end Dec• Evolve management trainee programme 80 graduates –

87 new participants• 57 people on Compass Academy • 34,000 completed Your Voice survey – 73% satisfaction

rate

NOTE: Robin to update

UK economic backdrop - challenging

Unemployment at 2.47 million, 7.8% - highest levels since 1995

Inflation (RPI) at 4.7%Consumer Price Index

(CPI) at 3.1%Interest rates at record low

of 0.5% since March 09Retail Sales fell in August

0.5% due to worries about tax rises and budget cuts

£200bn quantitative easing regime

CSR has heightened consumer concern

Fragile recovery following largest recession since records began in 1955

Source: ONS

Economic backdrop – outlook of impact on Compass

Consumers adapting to new economy – changing behaviours

Corporates and Public sector seeking subsidy reduction/removal and contractor profit squeeze

Hospitality not returning – changed forever ????

Weak pound continues to threaten food costs (food inflation pressure & VAT increase)

New UK Government tackling national debt (public sector spending / union activity)

Compounded by Geographic challenges e.g.; Wheat price increases in Russia

Recovery fragile - double dip remains possible

My first 225 (146 working) days

• Comprehensive restructure and reduction of central functions (reduced by 23%, 220 Roles)

• Merged our Marketing and Purchasing and Supply chain teams to create a new Commercial Directorate

• Supported the winning of £70m new business• Announced the closure of the UK Head Office• Acquired the UK’s 4th Largest Security Company• Chaired Compass International Healthcare forum (in

Toronto)• Helped reduce internal e-mail traffic by 50% (900k e-mails

per month)

My first 225 (146 working) days

• Ultimately responsible for >600m customer experiences

• Delivered 42 presentations

• Met with 98 clients

• Represent Compass in the Government’s Responsibility Deal chaired by Sec of State for Health (Andrew Lansley)

• Met with 3 other Secretary’s of State (Education, DEFRA and Defence)

• Attended far too many lunches and dinners

In Summary

• Managing change is the core competence of our business

• It is possible to land your dream job

• Our sector provides infinite variety and growth potential

• Compass is a Great company to join for a long term and potentially international career

• If I can do it, anybody can!!!!

Thanks for listening….

Any Questions