Compass Group PLC — Call Transcript 2026

Morning everyone, thank you for joining us today. Welcome to our half year results. We've delivered another very strong half, with operating profit up by 12%. This performance reflects a powerful combination of good organic growth, continued margin expansion, and disciplined M&A. We're raising our guidance for the full year and now expect operating profit growth above 11%. The outsourcing market remains highly attractive, and our new business wins are excellent, increasing by 14% year-over-year to $4.1 billion. Over half of our wins came from first-time outsourcing, reflecting the strong structural growth opportunity across our markets, driven by the increasing complexity of client demands. Combined with our strong client retention, we have high confidence in our outlook for net new business growth, which we expect to accelerate in the second half. We continue to execute against our proven growth algorithm as we generate strong long-term recurring revenues. We're delivering mid to high single-digit organic revenue growth. When you layer on ongoing margin progression and M&A, that continues to translate into high single-digit operating profit growth. This year, profit growth will be even stronger, reflecting the contribution from Vermaat. I'll now hand over to Petros to walk you through the financials in more detail. Thanks, Dominic, and good morning everyone. We delivered strong progress across all our key financial metrics with robust revenue growth and double-digit increases in both profit and earnings per share. Let me start with revenue. Revenue increased by 9%, with organic growth remaining strong at just over 7%. Net new business growth was just under 4% as the second quarter was modestly impacted by adverse weather in North America, which delayed mobilizations at several client sites. As Dominic mentioned, based on our forward-looking indicators, we continue to expect net new growth to accelerate in the second half. Pricing and volume were in line with our expectations, acquisitions contributed an additional 1.5 points to growth. Given the timing impact of client mobilizations, it is better to assess net new performance on a 12 months basis. Over the last 12 months, net new growth was 4.2%. We expect net new to remain within our 4%-5% target range in 2026, and this is for the fifth consecutive year. This compares with our historic average of 3% when growth was largely driven by North America and international was broadly flat. Today, net new is more balanced, with international performing on par with North America, which continues to fire on all cylinders. Operating profit increased 12% to more than $1.8 billion, driven by strong revenue growth and 20 basis points of margin expansion. Net interest expense was $166 million, reflecting higher debt following acquisitions. For the full year, we continue to expect interest expense of around $350 million. As expected, our effective tax rate was 25.5%, and we expect it to remain stable. Earnings per share also increased 12% in constant currency. Turning to cash. Capital expenditure was 3.4% of revenue, and we continue to expect CapEx to be around 3.5% of revenue for the full year. As you know, working capital has a seasonal profile, and we were pleased to reduce our usual first half outflow whilst growing revenue. Our strong working capital management helped to drive a 14% increase in operating cash flow ahead of profit growth. We continue to expect working capital to be broadly neutral at the full year. Moving to regional performance, we delivered balanced growth with strong progress in both regions. In North America, revenue increased by 8%. Operating profit grew 9%, reflecting a 10 basis points improvement in margin. In international, revenue growth was higher at 10% as acquisitions added 3 percentage points to growth. Operating profit was up 15%, driven by 30 basis points improvement in margin as we benefited from overhead leverage and synergies from M&A. Looking ahead, we are confident in our ability to continue driving margin improvement over the long term, supported by three clear levers. First, we're enhancing productivity through consistent execution of our MAT framework, delivering efficiencies from better purchasing and greater use of data and technology. Second, we're leveraging regional and group overheads. Third, we're delivering synergies from acquisitions, particularly in international. While opportunities exist in both regions, we expect faster margin progress in international with more incremental gains in North America. Over time, this should narrow the margin gap between the two regions. Our capital allocation framework remains clear, disciplined, and unchanged. Our first priority is to invest in the business through CapEx to support growth where we generate returns north of 20%. We have also been using M&A to accelerate sectorization, particularly in Europe. Our focus is now shifting to bolt-on acquisitions such as vending and GPOs. Both forms of investment generate returns that are more than double our cost of capital and are value accretive for our shareholders. Our dividend policy remains unchanged with a payout of around 60% of underlying earnings. We continue to target a strong investment-grade credit profile with leverage of 1x-1.5x and any surplus capital returned to shareholders. Looking at the balance sheet now. As expected, leverage increased to 1.7x at the half year, reflecting our investment in growth. During the period, we completed the acquisition of Vermaat for $1.7 billion and more recently acquired Pro Care Management, a leading food and beverage GPO in Germany for $270 million. Dominic will discuss this acquisition in more detail shortly. Looking ahead, we expect to deleverage and return to our target range over time. Before turning to guidance, a quick word on the developments in the Middle East. While we have no direct exposure to the region, we're very well-positioned to manage any inflationary impact. As always, our approach starts with mitigation, followed by appropriate pricing. Around two-thirds of our contracts include dynamic pricing, and for the remaining fixed-price contracts, we have indexation clauses covering both food and labor costs. Smaller competitors and street alternatives typically have far fewer levers available to them. In periods of elevated inflation, our value advantage versus street pricing usually grows. Finally, full-year guidance. Based on our strong first half performance, we are raising our expectations for operating profit growth to above 11% on a constant currency basis. That reflects organic revenue growth of around 7%, around 2% profit growth from M&A, and continued margin expansion. With that, I'll hand it back to Dominic. Thanks, Petros. As you've seen today, we delivered another strong set of results and are well-positioned for continued growth. It really is a privilege to work for a company that touches so many lives. The strength of our model lies in its diversity and adaptability. We feed people every day in many captive environments, from school to retirement, wherever they learn, work, play, or heal. Humans are social beings. Wherever people come together, they eat and drink, and we're there to serve them. We don't believe that fundamental need will change regardless of how the world evolves or how AI transforms the economy. Our addressable market is expanding at 5% per annum and is worth around $360 billion. This growth reflects our expanding capabilities, entry into new subsectors, and deployments of more flexible operating models. At this growth rate, we estimate the market could reach around $600 billion by 2035. Following our exit from non-core markets, our portfolio is now more focused, with the top 10 countries representing 90% of the opportunity while retaining broad sector diversification across all core markets. Business & Industry alone represents a $130 billion market. It continues to be our best performing sector, delivering double-digit organic growth. Our subsector approach is a key strength, underpinning an extremely diverse client base that provides resilience and a significant runway for growth. Importantly, growth is not just dependent on securing new accounts. Our existing B&I tech clients are scaling with revenues from our top 10 tech clients up 36% over the past three years. We see significant opportunity across the AI ecosystem, and it's broader than big tech. The AI build-out spans everything from semiconductors and servers to data centers and power to the next wave of enterprise applications. We already work with more than 60 clients across this ecosystem, and that footprint is growing. As the next wave of AI companies reach fundable scale, small teams quickly scale into campus-style operations needing integrated services. Healthcare also represents a highly compelling growth opportunity, with healthcare across all settings expected to be the fastest-growing industry. Growth is being driven by structural and demographic changes as populations age and chronic conditions become more prevalent. AI is also likely to increase productivity, which can increase the number of patients being treated. The addressable market size today is around $90 billion and growing, with more than half of that still self-operated. Sports and leisure is another exciting area. The global market is expected to grow to $80 billion by 2030. Through Levy, we are already a market leader in the U.S. and the U.K., with combined revenues of $5 billion. In the U.S., we now serve more than 350 venues, including around 40% of major professional sports venues. As venues host more non-game events such as concerts, we've unlocked additional revenue streams. Non-game events now represent around 25% of Levy revenue, and we expect that share to continue growing. Education is a roughly $100 billion market, with around half still self-operated, creating a substantial outsourcing opportunity. Budgets are under pressure. Outsourcing delivers cost efficiency and expectations around food quality, technology and compliance continue to rise. At the same time, allergen and food safety regulations are becoming more complex, increasing the value of scale and expertise. We also see meaningful growth opportunities in defense, offshore and remote. These sectors carry high degrees of operational complexity, spanning compliance, security and logistics, which favors scaled operators with specialist expertise such as Compass. Building on our global experience, we established a specialist team to address the U.S. defense sector and recently secured and mobilized our first contract in this market. Turning to offshore and remote. Energy security concerns are driving increased investment and activity in this space. The sector is characterized by long-term contracts in safety-critical environments, oil rigs, mining sites, maritime vessels, where the barriers to entry are high and client retention is strong. We're often asked what's behind our continued success and market outperformance. It really comes down to two things. First, we operate a truly unique sector-led model. Our business is decentralized, with many of our brands still led by their original founder owner entrepreneurs. That keeps us close to our clients, our consumers, and our markets. Second, we pair that local agility with the power of global scale, particularly in food procurement and technology. In short, we combine local relevance with global strength, the best of both worlds, and that's something that is genuinely unique in our industry. While we have strong competitive advantages across the market, it's worth noting that 85% of our wins come from first-time outsourcing and local operators. That means growth is largely structural, converting self-operated sites and winning against competitors who can't match our scale, technology or service quality. As Petros mentioned, in March, we acquired Pro Care Management, or PCM, a leading food and beverage GPO in Germany. This is fully aligned with our strategy of building procurement scale and capability at the country level. PCM brings with it an advanced procurement technology platform with clear potential to be deployed across other markets. This high-quality acquisition means we now operate GPOs in five of our top 10 markets, further strengthening our competitive advantage. We're also investing in AI and data to accelerate growth and improve productivity, particularly across sales, retention and operations, freeing up our unit managers to spend more time with their clients. Let me give you some examples. We're using data and AI to drive consistent execution of the sales funnel, which we expect to translate into higher conversion over time. Leveraging more than a decade of proprietary sales data, AI-powered tools support bid preparation, predict win probability, and guide next best actions. We know from the data that disciplined execution of best practice selling behaviors improves win rates. Similarly, in retention, we're applying AI across the full life cycle, combining client, consumer and operational insights. We track sentiment, monitor issues and resolution times, and use predictive models to flag accounts at risk, giving our teams the opportunity to intervene earlier, address issues proactively, and increase preemption rates over time. Finally, we deploy Centric OS, developed by Compass Digital Labs to support our unit managers. We've now rolled it out across around a quarter of our units in North America. It provides better data for demand forecasting, menu and inventory planning, reporting, and labor optimization, enabling unit managers to continuously improve the offer for clients. Just as importantly, it frees up time, allowing our operators to spend more time with clients and consumers where it matters most. In summary, we operate in a highly attractive market that keeps on growing. That's the foundation everything else builds on. What makes us different is how we combine local offers with global scale. Our teams on the ground know their clients inside out, and they're backed by the resources and capabilities of a global organization. That's a powerful combination and hard to replicate. We keep investing in technology, in our people, in innovation, because that's what keeps us ahead. You've seen today how AI and digital tools are already making a real difference across sales, retention, and unit operations. Our results demonstrate the strength of our operating model and the scale of the opportunities ahead. This underpins our confidence in delivering against our growth algorithm of high single digits operating profit growth. For 2026, we expect to do even better, having raised our operating profit growth guidance to above 11%. With that, we'll open the call for questions. The operator will provide instructions. And please remember, you'll need to be connected by a phone- This meeting is being recorded. Operator, over to you. Thank you. Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. Please stand by while we compile the list. Thank you. Our first question will come from Leo Carrington of Citi. Your line is open. Please go ahead. Good morning. Thank you for taking my questions. Please can I first ask a couple of follow-ups on your comments, Dominic, on B&I strength and sports and leisure. In terms of sports and leisure, particularly in international, I noticed there was a long-term deal with The Jockey Club. There was this first time, I think, outsourcing Old Trafford. Is this market much less mature than the U.S. and are there more opportunities like this? Then on B&I, is industry similarly dynamic as the office sub-segment? Generally outside of that strength in tech that you highlighted, I'm interested in your legacy on the outsourcing growth drivers, given that employment growth is flatter, although return to office is still a theme. Interested in knowing what your ex-tech clients are saying. Thank you. Thank you, Leo. Thanks for those questions. Yeah, look, I think you're absolutely right. I mean, you referenced The Jockey Club and Manchester United, both of which are significant first-time outsourcing opportunities for us. Those are in the U.K. Of course, the U.K. has been a country of great success for us in the sports and leisure sector. Obviously, with the likes of Twickenham, Wimbledon, Tottenham Hotspur, the O2, the ExCeL. The U.K. is very much like the U.S. for us in the sports and leisure sector. Actually, where we see the bigger opportunities across the international markets of Europe and Asia-Pacific, where we've had success with the Australian Open in Melbourne and a number of football clubs across Europe. We're actually expanding our footprint. We're taking Levy internationally, so we can deliver the sports and leisure experience of the Levy brand, which is proven in the U.S. and the U.K., by deploying our local resources, our buying power, and our logistics capability, as well as our ability to source labor. Ensuring that we're using the Levy brand standards to deliver the quality of experience to our clients. What we see there is a lot of investment coming into Europe and internationally, in particular from the U.S., where there's a level of expectation of comparable standards in the hospitality and concessions to those which we've seen in the U.S. and the U.K. We think it's a really exciting opportunity for us. I mean, you've seen our growth rates in the region are sort of around 14%, 15%. We think we can do, you know, that and better still as we organize even more for the opportunity. It's definitely a very exciting area for us. I'd also call out the area of conference and events. It's been a very big part of our business in the U.S. and increasingly in the U.K., with the NEC being a latest win for us in the U.K. and operated alongside the ExCeL. We see that opportunity across many of the European markets in the major European cities too. It's a sector that we're organizing for now. We think it's going to contribute accretive growth to international for some time to come. In terms of your question around B&I and sort of industry versus the offices you put in and what the drivers are. I mean, I think one that I would call out immediately. I mean, first of all, again, you know, looking at the performance of B&I in the context of the group performance, it's been, you know, our fastest growing sector for a number of years now. It's accreted growth in North America and in our international markets. There's a significant opportunity from first-time outsourcing from the opening of new facilities, new buildings. Here in the U.K., we're seeing that, aren't we, with the new HSBC building, with the JPMorgan tower being announced in Canary Wharf. All of these are opportunities for outsourcing at scale in new facilities, which are keeping the sector buoyant. I think what's also exciting for us there is, you know, when we go through periods of higher inflation, as we are seeing today and likely will experience over the coming months and possibly years, as the impacts of the events in the Middle East flow through food cost inflation. You know, we have a significant competitive advantage, and that, you know, that plays out in our relative pricing against the street, where we're not tied to menus, we don't have the utility costs, and we don't have the burden in particular of energy. Therefore, I believe that plays out both in terms of our competitiveness for the consumer, who will choose to stay on site and gives us the benefit through like-for-like volumes. But also in an acceleration of outsourcing and of the benefit of the larger outsourcers who've got, you know, a better ability to manage costs than the smaller players. I think those open up opportunities in terms of like-for-like, and our ability to take share. We continue to see a sort of buoyancy within the overall B&I sector. As we talked about today in the presentation, you know, the AI ecosystem and phenomena isn't just about the tech players, it's about the entirety of the supply chain. That means that there is a level of manufacturing too, which would fall within our business portfolio, where we expect to see growth and opportunity. I'd also point to the defense supply chain and the scaling of the defense manufacturing in many of the Western countries where, you know, we've doubled down on that footprint. We believe that that's going to create further opportunity in defense. I think we're constantly seeing trends that, you know, benefit our business as long as we can continue to offer quality at the right cost. We remain very excited about the potential for B&I and sports and leisure going forward. Thank you, Dominic. Thank you. Our next question comes from Jamie Rollo of Morgan Stanley. Your line is open. Please go ahead. Thanks. Good morning. Three questions, please. First of all, just back on the net new slowdown to under 4% in Q2. I appreciate it's only a quarter and you've given us good figures for the pipeline and so on. Your retention was also down year on year, and there's just been some general concern from investors about the competitive environment. Could you explain why the bad weather didn't hit like-for-like volumes? Also talk about why that did hit client mobilization, and also why that retention number was down a bit. Also talk about your confidence level on the net new re-accelerating in the back half of the year and the sort of the cadence of that. Second question, bit shorter, what's your pricing expectation for the second half now, given the sort of inflation pick-up? Finally, just on M&A, you're shifting to bolt-ons you said, Petros, I mean, what's the likelihood, do you think, of a buyback announcement later this year? How is the pipeline looking for deals? Thank you. Thank you, Jamie. Good morning. Let me have a go at your first question and then I'll let Petros add any color and then pick up on pricing and M&A. Look, yeah, we're highly confident in the outlook for the second half of the year. We've got high levels of assurance that we'll close the year in the 4%-5% range. As you've seen today, our last 12 months metric is in the range of 4%-5%, and this will be the fifth year where we're in our 4%-5% net new range. As you rightly say, Jamie, there's always gonna be puts and takes in net new between quarters. If we lose just a couple of days of opening, that does have an impact on net new, as we did to weather. We lost, you know, half a week in some instances, if not a week, because of delays as a result of the weather impact. That has had an impact in the quarter. Retention's always bumpy at the timing of when contracts run on and off. Again, I'd ask you to look at the long term trends. We've been in that 4%-5% range now for what will be five years. We've been trending above 96% for many years now. There's a level of sustainability and consistency of the business, which, you know, we certainly didn't witness pre-COVID and which I'm very confident in. Why is that? It's underpinned by, you know, ever more data around the pipeline. You've seen our new business wins on an ARO basis are at $4.1 billion and growing very strongly. You know, we talked today about the AI benefit to sales and retention. We think that that's going to yield further opportunity for us, you know, and putting ever more pressure on us in the business to do better within the 4%-5% range because we believe we can. The last point I'd say on that is, if you, if you think back and you know us long, a long time now, Jamie, what's truly different here is that our international region is performing at a par with North America. You know, North America is doing what it's always done. We're in an environment where we're seeing super scaling in North America and some really material contracts. Whether those are in tech, defense, healthcare, education, we see some fantastic opportunity. What's really exciting is what we're doing in international and the fact now that we're growing consistently at a par. That really is the delta in our performance, we think that there's a level of consistency to that which with confidence about going forward. You will see as a result an acceleration in the second half, which, you know, will take us very positively into 2026, 2027 and beyond. Only thing I'm going to ask Dominic on the organic, let's also remind ourselves we have been delivering positive volume for the last four years. We're operating now in 2027, a fully normalized world. We have about 70 basis points of the tailwind there, which plays back to our competitiveness within the street level, and the good bits of our things to do with the clients. To your question on pricing, I think we're running around 2.7%. Remember, we mitigate before we go to clients to discussing appropriate pricing. We're factoring thereabout the same level of pricing for the balance to grow, subject to what happens in the global, in the global landscape with the Iran conflict. If you look at the oil prices, they are running, you know, above $100. I think the gist here is we do have the resilience in the business and the experience to navigate this through, if it emerges in the second half or in fiscal year 2027. When it comes to the M&A, I just want to remind us, when you see our profit growth this year, there is a very good contribution from M&A, which is a matter of executing our integrations, executing our business cases, both when it comes to organic and margin expansion. We're pleased with how the M&As are performing. As we move forward, we have come to the near completion of the medium-sized sectorization for Europe. We do expect to continue to invest in both zones in unattended and GPOs, which is a strategic priority for us. As we go to end of September, you know, to the full year, we're gonna update you in November, what is gonna be our capital allocation choice, subject to M&A pipeline. Okay. Thank you very much. Thank you. Once again, as a reminder, ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. Thank you. We will now move on to our next question from Jaafar Mestari of BNP Paribas. Your line is open. Please go ahead. Hi. Good morning. I have three questions, please. First one is on acquisition synergies, which you mentioned is one of the reasons for the strong margins this half. I don't assume that's Vermaat yet, because you've only had your hands on it for a few weeks in the half. So really curious to understand what the process is for some of the acquisitions you've integrated sometimes two years ago now, and whether we should think that the big push you've done will result in a couple of years now of continuing to take costs out and improving on those. Thank you for the market commentary. It almost feels like a like a mini investor day. I don't know if you've done more thinking, or if you've shared more thinking that you would usually share at this stage of the year. One segment where you seem very excited is healthcare, and that's global, I think, your comments. Healthcare global, you state should be the fastest growing vertical. I'm gonna use the dollar figures you report for North American Healthcare. I'm sure this doesn't add up with organic growth, I don't think there's disposals in North American Healthcare. On those dollar figures, North American Healthcare in H1 2026 is growing 4.1%, which is the lowest growth in your North American portfolio. Just curious how we reconcile those exciting opportunities in mediums and healthcare and the current trends. It wasn't dissimilar last year. Is it a bit more pain now and then some growth? Is it mostly international? How do I make it make sense, please? Lastly, in terms of the AI ecosystem, I'm conscious you don't necessarily have the same public relations policy as some of your competitors, but, you know, some of them came out with big press releases that they're gonna have data center revenues starting in 2026. Just curious where you are there. Is it something that's gonna be very much ad hoc? Because as you said, you have relationships with a lot of these participants already. Is it just you're not going to have anything very big from data center contracts in 2026? Thank you, Jaafar. Let me take those in reverse order, and then I can hand to Petros to give us a bit more color on the M&A synergy point. First of all, with regards to AI, I mean, I think if you recall our first quarter call, we talked extensively then about the opportunity and the fact that we were already operational within that new subsector. You know, we may not, as you rightly say, have taken a similar PR-type approach, but we see it as being a good opportunity for us. Let's remind ourselves that we're pretty much the exclusive partner of five of the six Magnificent Seven that outsource today. We, we have a super relationship with them from which to build into that opportunity. It's something that's happening with a number of them, both in North America and in the international region. We, we've developed a bespoke offer to provide services into that space. As we talked about, there's some onsite restaurants, but it's also about the micro market offer, the cleaning and other soft services that we can provide into those facilities. That's something we can bundle together. We're very excited by that. It is, as you heard us say today in the presentation, it is a one strand of the opportunity that exists within the AI ecosystem alongside manufacturing facilities alongside some of the new startups that are emerging at scale and at pace. We feel pretty exciting and believe that the AI in the round, and data and technology will remain an exciting opportunity for us and a net growth contributor over time as we go forward. In terms of healthcare, you're right in the short term, the growth is slightly below where we believe it will be over time, and it's slightly below our average. With that true of North America. What we do believe, though, is that there remains a very significant opportunity. We know there are a number of accounts that are in discussion and are off scale. We see the cost pressures which are applying to the sector, and we also obviously all know the opportunities that exist around an aging population that's going to need more care and more clinical attention as we go forward. We do believe across all subsectors of healthcare, whether that's daycare, whether that is the senior living facilities, there's an exciting opportunity, and we continue to work very hard on our offer for that. I think you'll see that starting to benefit our overall growth as we go forward. Finally, I will hand this over to Petros. Just a little thought, you called out acquisition synergies. Maybe if I could just elevate that sort of to our overall margin performance. We're super excited today with the 20 basis points of margin progression that we've made. There's really three levers within that. One is overhead leverage as we continue to grow and we maintain cost discipline. The second is the contribution of purchasing through our GPO footprint. The third is the M&A synergies. I think what you see now is we've really dialed through the post-COVID era. We've dealt with the higher cost inflation of the sort of Ukraine crisis as it were. I think what we believe now is there's no reason why we shouldn't be able to see consistent margin growth year-over-year from here, principally because of those three levers. We think we have it built into our business model. We're confident that we'll see consistent margin accretion year-over-year, which is really exciting. Actually feels like I talked earlier about, you know, a delta in our business model being the improvements in the international performance to be on a par with North America. I think if you have a level of confidence in ongoing margin expansion, that too is another pivot for us in our performance as we go forward. I'll just add one comment on healthcare. If you're looking at international business, we're growing about 10% in healthcare, which is primarily driven by first-time outsourcing. If you take this in the context of North America first-time outsourcing opportunity, which is about 60%, this where we're really focusing on unlocking these opportunities that we have ahead of us. On the margin expansion, I think Dominic covered the levers. Maybe a couple of points to add here. We're truly witnessing now an area where we have margin expansion across the three levers we can drive within our business. Half of our margin progress is core margin expansion, which is leveraging our purchasing, investing in data and tech. We have been investing for quite some time now, and it's an integral part of our business. I just want to remind everyone, we're investing around $300 million on tech every year. We have about 1,500 of technologies within our North America organization that gives us the confidence to keep improving our processes and how we monetize these investments. Then when you go to the other two levers, a quarter of the other half is the M&A expansion. As you rightly said, very much it's not that these numbers were annualizing acquisitions from last year and actually two years ago, that they keep giving some really good performance. The other quarter is overhead leverage, where we're truly convinced with the investments we have made, we can do more with same. This is where you see the overhead leverage playing to full extent. Thank you very much. Thank you. Our next question comes from Simon Lechipre of Jefferies. Your line is open. Please go ahead. Yes, good morning. Thanks for taking my questions. A quick clarification on retention just for the second half and going forward. Are you confident to have retention back above 96%? Secondly, a bit of a short-term question on what sort of revenue do you expect from the World Cup in North America? Lastly, just clarifying that if you expect margin to improve in North America as well as in international region. Thank you. Thank you, Simon, for those. Yeah, look, You know, we are confident as we can be of retention being above 96% as we go forward based on everything we see today. Look, we continue to put pressure on ourselves across the business to do even better. You know, we've seen with the deployment of AI within our retention processes that, you know, we can get to better outcomes on preempts. You know, we continue to deploy with rigor and discipline our site processes across the wider group. We continue to term out our contracts. I mean, we should be constantly putting pressure on ourselves to do even better on retention. In terms of the World Cup, just remind, I mean, we operate four or five of the stadiums today. We will see World Cup games in those facilities, but of course, they will replace other sporting events that would've happened around at that time. We're also operating some of the fan zones. So, you know, I think there'll be a small benefit, but it will only be small in the context of the scale of our North American numbers. Then in terms of North American margin, Petros? Yeah, Simon. We continue to expect margin progress in the second half, both from North American International, making progress versus the first half and versus last year. It's gonna be perhaps a little, you know, touch softer than the first half, given the large mobilizations we have in the second half. Definitely we're seeing some really positive trends on the margin expansion. Thank you. Thank you. Our next question comes from Estelle Weingrod of JPMorgan. You may insert and please go ahead. Hi. Good morning. Thanks for taking my question. The first one, again, on retention, since Q2 was a touch softer, anything you would flag in terms of competitive intensity in the U.S. and outside U.S.? Is the environment still relatively rational overall? The second question, on the acceleration of net new in H2, how should we think of it on a quarterly basis, i.e. Q3 versus Q4? Thank you. Thank you, Estelle. I mean, first of all, I would urge you and others not to overthink quarterly trends. You know, we're very focused on LTM. We're very focused on the full-year performance. In these numbers at this scale and the size of our some of our contracts as they run on and off, you're always gonna see distortions. Look, I'll let Petros pick up specifically on those two questions. You know, the one other point which I think is really worth making when it comes to new business, we haven't made is 85% of our new business is coming from first-time outsourcing and from local, from winning local players. You know, I think a narrative around greater competitiveness is sort of not really borne out by the data. Only 15% of our growth is coming from, I guess, share wins from the larger global players. Also if you look back over possibly the last 10 years, we've always been the net winner of share in that particular space in terms of against the largest international players. You know, look, I know looking backwards doesn't necessarily predict how we go forwards, but, you know, as you've heard us say today, we do truly believe that the model that we've built with the client localization at the front end and the benefits of total national scale and also the GPO model means that we should truly be best placed to continue to win at these levels. Petros? Maybe a couple of points to understand. I think on retention, if you truly look in the last four years, we have been consistently at 96% and above. There is none specifically to call out. I think Dominic touched on this. We do expect in the second half to net new to accelerate towards the middle, the middle of our range, so 4%-5%. If you look at our gross new signings, GBP 4.1 billion, and the line of sight we have on mobilizing the second half, we feel confident we're going to be the fifth year, the fifth consecutive year of delivering net new 4%-5% and being in the middle of this range for the second half. Okay. Thank you. Thank you. Our next question comes from Neil Tyler of Rothschild. You are unmuted. Please go ahead. Hey, good morning. Thank you. One further follow-up from me. Dominic, the GBP 600 billion you mentioned as the sort of long-term market opportunity includes you adding further capabilities. I wonder if you could perhaps sort of you know share what those what you anticipate you need to add to the portfolio to be able to address the entirety of that market and whether that would be more likely done organically or you need to look elsewhere for those. Thank you. Yeah. Thank you, Neil. This is a really important question. If you look at the market that we competed in 2015, it was valued at around $220 billion. Today, that integrates, so that's $360 billion. It's been growing at a CAGR of 5% ahead of GDP. Now, that is due to a number of factors. First of all, it's the growth of our client base within that. Separately, it's been the inclusion of other opportunities as we've seen them going forward. When you look at that $600 billion, it's a continuation of some of those trends, but also, you know, as we've adapted our operating model, it does give us access to other channels which are growing faster still. Including in that, we've now got the opportunities we discussed today to address sports and leisure internationally, which wouldn't previously have been included. It would only have been within the markets in which we have previously operated. Secondly, it's where we see the expansion within the AI ecosystem. We've got the opportunity in micro markets internationally, which we haven't previously mobilized and organized around, and we do now have the capabilities for that. It's the inclusion of the defense sector in North America, where, as you've heard us say today, we've begun to take share and we're starting to win first-time outsourcing contracts as we scale our endeavors there. I think it's a combination of positive tailwinds within those core sectors. Some of those we've talked about, like aging populations in the countries in which we operate. Separately, it's our ability to open up new subsectors which expand the TAM for us ahead of those growth rates. That's what feels really exciting. You've seen us do it with the M&A that we've prosecuted. Some of it will be by M&A, some of it will be by organic build, and some of it will be by transferring the capabilities we've already built within existing mature markets into new sector opportunities in other countries. Okay, thank you very much. Very clear. Thank you. Our next question comes from Pravin Gondhale of Barclays. Your line is open. Please go ahead. Hello. Thanks for taking my questions. Two of them on M&A and data center opportunity here. Firstly, could you please talk about a bit more about Pro Care M&A? What level of procurement synergies and margin accretion you expect when this is fully consolidated? Secondly, on data center opportunity. One of your peers has launched a specialized offer recently. Could you please talk about your initiatives and the pipeline of new business in this new subsector? Thank you. Why don't I hand those to Petros? Hello, Pravin. On the M&A, I guess you recall, the fundamental of our business is GPO and purchasing. We have now five markets running GPO organizations, including Germany, with the recent acquisition. It's a great established third-party GPO business in Germany. This will bring our managed spend nearly over GBP 1 billion, including our business there. It's giving us sufficient scale to put in our model and drive the flywheel that we're seeing in other markets. I would say the GPO, the way we've got GPO is more correlated to growth. We're getting more competitive on costs. We're investing back in the business. We're able to drive more gross new and retain and have better retention rates. We're very excited about the acquisition. As you know, we closed the acquisition last month. We would expect to see some improvement both on competitiveness when it comes to net new and margin expansion. On data centers, maybe the simple answer to this is we have been running data centers for some of our tech clients for quite some time now. In our offer, if you're looking at our tech clients, we have been growing with them in excess of 30% for the last three, four years. We do have an offer today, which is in place, it has grown at scale, which combines food and specialty support services as they're scaling up their data centers. You do see this in our growth rates in the tech, you do see this in our growth rates in the emerging economies within the AI ecosystem. It's nothing new to us. We have been doing this, and we just plan to capitalize more as we go. Yeah. Let me, if I might just add on the GPO point, because I think it's just a really important area of our business. You know, with the PCM acquisition in Germany, as Petros rightly said, we're now at $1 billion of spend in Germany. That's a very significant contributor to our competitiveness in Germany, where we see a great growth opportunity. As Petros also said, and just to reiterate the point, we've now got GPO capability in five of our top 10 markets. We're making this a strategic priority. The way we'll build this out is by establishing GPO capability in each of those countries so that we can provide those services to third parties and to Compass volume as a customer too. We can do that either through market acquisition or through effectively exporting the offer that we've acquired here with PCM into new markets. We feel really good about some of the capability in terms of the leadership that we're bringing into the group, who are gonna help us really accelerate this opportunity. We feel that we've really got our arms around it now in a way that's gonna be additive as we go forward with confidence. Thank you. This is really helpful. Just a follow-up to the plus 36% tech revenue growth in last three years that you sort of indicated earlier. Could you just chat about what it has been in last 12 months? Thank you. It has been in the double-digit growth rates. If you're talking about our tech clients, Pravin? Sorry, I don't get the question. Don't get the question. Yeah. Okay. Yes, please. Tech clients. Actually, if you look at our B&I performance overall, we have been growing at about 12% in North America. Our tech clients actually is ahead of this aggregated growth rates. That gives us confidence to keep growing within our existing clients. Thank you. This is really helpful. Thanks. Our next question comes from Kate Xiao of Bank of America. Your line is open. Please go ahead. Thank you very much for taking my questions. I have three. First, can you comment on current trading in the first half of 3Q? Are you seeing, in terms of organic growth and especially net new, early signs of that acceleration already? Two, on volume, can you help us understand the second half trajectory of volume growth there? Obviously you did 0.7% in first half. Last year it was 1%. I guess in the second half of this year with the tailwind of FIFA World Cup, which I assume would be mostly in volume, should we think about volume in the second half more, you know, towards the 1%, you know, of that range? You know, can you help us understand the moving parts there? Third question is a bit longer term. Obviously that 5% market CAGR that you guys have, you know, are thinking now into the long term. How should we think about your 6%-8% top line growth algo at the lower end of that range? We're looking at only 1 percentage point of outperformance over the market. Is that a bit too conservative? Because if I look at your North America, it has been 7%-8% consistently for a number of years. Is it a matter of conservatism because you're, we're at very early stage of, you know, inflection of the, of your international markets? Especially, you know, you talked about all the tailwind in a number of end markets. With all that tailwind should we be, you know, thinking about maybe upside to the 7%-8% range in the long term? Thank you. Kate, thank you. You've gone from one month out to 10 years out in those questions. Thank you. I'll start with the long term. I mean, look, what's really important for us is that we've got a framework for investors that gives them insight into our levels of confidence of the long-term performance of this business. I think today we're the best business we've ever been. You know, I've been here 15 years now, and I look at this business and think there's a level of consistency and sustainability of it that we, you know, that is greater and better than we've ever previously enjoyed. Why is that? Because I truly believe we're in that 4%-5% range across both parts of our business and can consistently perform within that. Of course, we'll task ourselves with doing better still. The other element that drives our long-term growth algorithm is, of course, like for like. You know, we talked about having 0.5 percentage points of volume opportunity to 1 percentage point, and then the balance being made up of pricing of maybe 1.5 percentage points-2.5 percentage points. You know, there's always going to be fluctuations within that. You know, perhaps in the near term, we're gonna see more pricing if the inflation comes through as a result of the Middle East. Maybe that might come off over time. We certainly feel like we're in an era of higher levels of inflation and therefore pricing than we have been for the previous decade prior to COVID. On the balance of that, I'd like to think that over time we'll be at the higher end of each of those ranges for, you know, market factors as well as self-help. You know, I won't make the comparison to, you know, you talk about sort of the rest of the industry as it were. I think what's different for us is that, you know, we're seeking consistency. We've delivered consistently now for five years. We haven't demonstrated volatility in our performance. That's what's really important for us, is that we have that level of consistency. What comes with that consistency on the top line is also the ability to consistently deliver the margin that we talked about. That's where, you know, the two really come together. You know, if we can be in that sort of mid- to high-single-digit revenue growth range consistently and be contributing, you know, 10 basis points-20 basis points of margin, then, you know, at that level we're into high-single-digits to low-double-digit profit growth, right? That's the beauty of what we're trying to build here, and we believe we can put in place consistently. Therefore when it comes to your, you know, your more near-term questions, I mean, you know, now look, we're only one month into current trading in the third quarter, so we're not gonna comment on that if you don't mind. Everything we are seeing would support all of the comments that we've made on the call today. More importantly, this is a long-term contract business, right? You know, when it comes to retention, you know, there's little that would impact us in the balance of this year that will run through the ITY years ago numbers. Therefore, we have a level of confidence around everything we're saying on retention. You know, likewise, we know pretty much when contracts are going to open and mobilize in the quarters that are ahead of us. There's a level of certainty in the near term that we've conveyed today in the call with you. Then, Petros, do you wanna just pick up on the volume? I think you covered pretty much though. Maybe the only point I'm going to make here is if you take this long-term view of volumes being flat, call it for a decade before COVID, and where we're now in a normalized world, where we're contributing anywhere between 50 basis points-100 basis points, which practically, if you see what has happened for the last five years, inflation has gone up. We do see more participation in our restaurants when it's compared to street pricing. We see this across the sectors. The second thing we're seeing is more of a tiered offer, specifically in sports and leisure. Five years ago, we used to have a concessions and a VIP offer. Today, we have eight tiered offers within sports and leisure. This speaks a lot about the quality of the experience and the willingness of our clients to keep innovating with us. The third thing I'm going to say, we have invested a lot in technology when it comes to how we serve our clients. Things like, you know, queue time reduction, when we're using kiosks, pre-order, grab-and-go concepts, our unattended and vending businesses. All of this supports more throughput and more spend within our restaurants, and this is what you see more structurally coming to our volumes. Thank you. We'll now take our next question from Karl Green of RBC. Your line is open. Please go ahead. Thanks very much. Just two remaining questions from me. Just going back to the comment you made about first time outsourcing in business and industry. It referenced, for example, new headquarters. One would assume that some of those new premises and new headquarters would be with existing clients or indeed clients that might have outsourced to other people before. I just wondered if you could indicate what percent of organic growth it comes from first time outsourcing with new clients who have never outsourced to you or others previously. It's a subtle definition, it kind of feels like there's some first time outsourcing in there that is facility rather than client related. The 2nd question, just back to Jamie's question at the top of the Q&A. I didn't quite get the answer as to the explanation for why the new business mobilization had been impacted by the weather compared to the like-for-like volumes. If you could just remind me of the answer to that, please. Yeah. Let me start with your second question, and then I will go to your first question. During if you go mid-February to through March, there have been quite a lot of extreme weather events in four states in the United States and southern states as well. You have snow storms, you have different, you know, events, which practically delayed us mobilizing new client accounts, new businesses. This is what you see in the, in the net new, the gross new. You heard us talking earlier, we know this will accelerate in the second half of this year. When it comes to your first question on the first time outsourcing, actually, we see about 2/3 of being, you know, new investment, new business from our clients, and then about 1/3 of on share gains. Nonetheless, it has been a very consistent trend for call it maybe four or five years now, we're capitalizing on this trend. There is a really good contribution from both sources of growth in this sector. Yeah. Sorry, just to add to that point, Karl. You know, you know, look, the volumes look broadly flat, sort of Q1 and Q2. We suspect it could have been a touch stronger if they hadn't been impacted by the weather. Also actually what we tend to find, particularly when it's sort of rain and snow, there's a pickup in support services for the cleanup operations afterwards, which has always been a sort of net, a net hedge for us in those circumstances. Very helpful. Thank you very much. Thank you. We'll now take the last question from Ivar Billfalk-Kelly of UBS. Your line is open. Please go ahead. Morning, everyone. Sorry if I'm going over new ground here. I missed a portion of the call. I wanna touch on the GPOs again, given you mentioned the contribution to margins and the importance of them. Since you only have the GPO in five of the top 10 countries, I mean, what do you actually need to put in place in the remaining 5 countries such that you'll be able to expand the model to those remaining countries? Is it a question of scale? Is it capability? What do you actually need there, and when might we expect that? Secondly, longer term, I mean, you only relatively recently rationalized your portfolio, but is there gonna be a point in future where you think that you might actually need to enter new geographies to try and continue, contributing to the growth? Lastly, just on the vending, and again, you're talking about the importance there, but can you quantify the pace of organic growth in the vending space compared to the traditional offering that you have, please? Thank you for those questions. Let me just take new geographies first. I think the simple answer is no. As you'd have seen from the presentation today, you know, we see the opportunity in our existing markets with the new subsectors that we can enter being $600 billion by 2035. We've got phenomenal headroom into which to grow this business. We see no priority of entering other geographies. This is about really focusing on how we accelerate growth in our core sectors and subsectors, and particularly export the learnings that we've got, so our great performance in areas like sports and leisure, into those international market opportunities. In terms of the GPOs that we're in, we're in five countries, so U.S., Canada, U.K., Australia, and now Germany. And fundamentally what we've done in pretty much all of those is we've acquired third-party GPO food and beverage operators, which have the technology, the sellers, the buyers to be able to really offer the most credible buying programs to third parties. By putting the Compass volumes into those programs, we get benefits with our suppliers. We get the halo of Compass growth, Compass M&A, the growth of our third parties and the new third parties that we bring into the operating model. All of that creates a level of growth with suppliers that they wouldn't otherwise enjoy with any one of those individual groups separately. That's how the model works for us. As you rightly said, it is about capability, so it's about identifying those organizations and then scaling them. We're working very actively on where we see opportunities to partner and opportunities to acquire, to build those in those remaining markets. Of course, you know, with some of these acquisitions, we've acquired great technology, so there is an opportunity for us to bring that technology into other markets and to build it organically, but we really get ahead of it more quickly through an inorganic play. Then maybe Petros on the vending point. Vending has been, in North America, the fastest growing business within B&I. We have been enjoying double-digit CAGR growth across all of the estate of the business, which is, you know, micro markets, placed on food offer, unattended, micro markets vending and office coffee. Has been consistent and has been a growing sector for us in North America. As Dominic referenced, we have a true opportunity to capitalize in international. We have the know-how, we have the capability to bring this forward in the international markets. Understood. Thank you very much. Thank you. That was our last question. I will now hand it back to Dominic Blakemore for closing remarks. Just, thank you very much everyone for joining us this morning. We look forward to speaking with you on the Q3 call later in the year. Thank you. This concludes today's call. Thank you for your participation. You may now disconnect.

Speaker 1: Morning everyone, thank you for joining us today. Welcome to our half year results. We've delivered another very strong half, with operating profit up by 12%. This performance reflects a powerful combination of good organic growth, continued margin expansion, and disciplined M&A. We're raising our guidance for the full year and now expect operating profit growth above 11%. The outsourcing market remains highly attractive, and our new business wins are excellent, increasing by 14% year-over-year to $4.1 billion. Over half of our wins came from first-time outsourcing, reflecting the strong structural growth opportunity across our markets, driven by the increasing complexity of client demands. Combined with our strong client retention, we have high confidence in our outlook for net new business growth, which we expect to accelerate in the second half. Morning everyone, thank you for joining us today. morning everyone thank you for joining us today Welcome to our half year results. welcome to our half year results We've delivered another very strong half, with operating profit up by 12%. we've delivered another very strong half with operating profit up by 12% This performance reflects a powerful combination of good organic growth, continued margin expansion, and disciplined M&A. this performance reflects a powerful combination of good organic growth continued margin expansion and disciplined m&a We're raising our guidance for the full year and now expect operating profit growth above 11%. we're raising our guidance for the full year and now expect operating profit growth above 11% The outsourcing market remains highly attractive, and our new business wins are excellent, increasing by 14% year-over-year to $4.1 billion. the outsourcing market remains highly attractive and our new business wins are excellent increasing by 14% year-over-year to $4.1 billion Over half of our wins came from first-time outsourcing, reflecting the strong structural growth opportunity across our markets, driven by the increasing complexity of client demands. over half of our wins came from first-time outsourcing reflecting the strong structural growth opportunity across our markets driven by the increasing complexity of client demands Combined with our strong client retention, we have high confidence in our outlook for net new business growth, which we expect to accelerate in the second half. combined with our strong client retention we have high confidence in our outlook for net new business growth which we expect to accelerate in the second half We continue to execute against our proven growth algorithm as we generate strong long-term recurring revenues. We're delivering mid to high single-digit organic revenue growth. When you layer on ongoing margin progression and M&A, that continues to translate into high single-digit operating profit growth. This year, profit growth will be even stronger, reflecting the contribution from Vermaat. I'll now hand over to Petros to walk you through the financials in more detail. We continue to execute against our proven growth algorithm as we generate strong long-term recurring revenues. we continue to execute against our proven growth algorithm as we generate strong long-term recurring revenues We're delivering mid to high single-digit organic revenue growth. we're delivering mid to high single-digit organic revenue growth When you layer on ongoing margin progression and M&A, that continues to translate into high single-digit operating profit growth. when you layer on ongoing margin progression and m&a that continues to translate into high single-digit operating profit growth This year, profit growth will be even stronger, reflecting the contribution from Vermaat. this year profit growth will be even stronger reflecting the contribution from vermaat I'll now hand over to Petros to walk you through the financials in more detail. i'll now hand over to petros to walk you through the financials in more detail

Speaker 11: Thanks, Dominic, and good morning everyone. We delivered strong progress across all our key financial metrics with robust revenue growth and double-digit increases in both profit and earnings per share. Let me start with revenue. Revenue increased by 9%, with organic growth remaining strong at just over 7%. Net new business growth was just under 4% as the second quarter was modestly impacted by adverse weather in North America, which delayed mobilizations at several client sites. As Dominic mentioned, based on our forward-looking indicators, we continue to expect net new growth to accelerate in the second half. Pricing and volume were in line with our expectations, acquisitions contributed an additional 1.5 points to growth. Given the timing impact of client mobilizations, it is better to assess net new performance on a 12 months basis. Thanks, Dominic , and good morning everyone. thanks dominic and good morning everyone We delivered strong progress across all our key financial metrics with robust revenue growth and double-digit increases in both profit and earnings per share. we delivered strong progress across all our key financial metrics with robust revenue growth and double-digit increases in both profit and earnings per share Let me start with revenue. let me start with revenue Revenue increased by 9%, with organic growth remaining strong at just over 7%. revenue increased by 9% with organic growth remaining strong at just over 7% Net new business growth was just under 4% as the second quarter was modestly impacted by adverse weather in North America, which delayed mobilizations at several client sites. net new business growth was just under 4% as the second quarter was modestly impacted by adverse weather in north america which delayed mobilizations at several client sites As Dominic mentioned, based on our forward-looking indicators, we continue to expect net new growth to accelerate in the second half. as dominic mentioned based on our forward-looking indicators we continue to expect net new growth to accelerate in the second half Pricing and volume were in line with our expectations, acquisitions contributed an additional 1.5 points to growth. pricing and volume were in line with our expectations acquisitions contributed an additional 1.5 points to growth Given the timing impact of client mobilizations, it is better to assess net new performance on a 12 months basis. given the timing impact of client mobilizations it is better to assess net new performance on a 12 months basis Over the last 12 months, net new growth was 4.2%. We expect net new to remain within our 4%-5% target range in 2026, and this is for the fifth consecutive year. This compares with our historic average of 3% when growth was largely driven by North America and international was broadly flat. Today, net new is more balanced, with international performing on par with North America, which continues to fire on all cylinders. Operating profit increased 12% to more than $1.8 billion, driven by strong revenue growth and 20 basis points of margin expansion. Net interest expense was $166 million, reflecting higher debt following acquisitions. For the full year, we continue to expect interest expense of around $350 million. Over the last 12 months, net new growth was 4.2%. over the last 12 months net new growth was 4.2% We expect net new to remain within our 4%-5% target range in 2026, and this is for the fifth consecutive year. we expect net new to remain within our 4%-5% target range in 2026 and this is for the fifth consecutive year This compares with our historic average of 3% when growth was largely driven by North America and international was broadly flat. this compares with our historic average of 3% when growth was largely driven by north america and international was broadly flat Today, net new is more balanced, with international performing on par with North America, which continues to fire on all cylinders. today net new is more balanced with international performing on par with north america which continues to fire on all cylinders Operating profit increased 12% to more than $1.8 billion, driven by strong revenue growth and 20 basis points of margin expansion. operating profit increased 12% to more than $1.8 billion driven by strong revenue growth and 20 basis points of margin expansion Net interest expense was $166 million, reflecting higher debt following acquisitions. net interest expense was $166 million reflecting higher debt following acquisitions For the full year, we continue to expect interest expense of around $350 million. for the full year we continue to expect interest expense of around $350 million As expected, our effective tax rate was 25.5%, and we expect it to remain stable. Earnings per share also increased 12% in constant currency. Turning to cash. Capital expenditure was 3.4% of revenue, and we continue to expect CapEx to be around 3.5% of revenue for the full year. As you know, working capital has a seasonal profile, and we were pleased to reduce our usual first half outflow whilst growing revenue. Our strong working capital management helped to drive a 14% increase in operating cash flow ahead of profit growth. We continue to expect working capital to be broadly neutral at the full year. Moving to regional performance, we delivered balanced growth with strong progress in both regions. In North America, revenue increased by 8%. As expected, our effective tax rate was 25.5%, and we expect it to remain stable. as expected our effective tax rate was 25.5% and we expect it to remain stable Earnings per share also increased 12% in constant currency. earnings per share also increased 12% in constant currency Turning to cash. turning to cash Capital expenditure was 3.4% of revenue, and we continue to expect CapEx to be around 3.5% of revenue for the full year. capital expenditure was 3.4% of revenue and we continue to expect capex to be around 3.5% of revenue for the full year As you know, working capital has a seasonal profile, and we were pleased to reduce our usual first half outflow whilst growing revenue. as you know working capital has a seasonal profile and we were pleased to reduce our usual first half outflow whilst growing revenue Our strong working capital management helped to drive a 14% increase in operating cash flow ahead of profit growth. our strong working capital management helped to drive a 14% increase in operating cash flow ahead of profit growth We continue to expect working capital to be broadly neutral at the full year. we continue to expect working capital to be broadly neutral at the full year Moving to regional performance, we delivered balanced growth with strong progress in both regions. moving to regional performance we delivered balanced growth with strong progress in both regions In North America, revenue increased by 8%. in north america revenue increased by 8% Operating profit grew 9%, reflecting a 10 basis points improvement in margin. In international, revenue growth was higher at 10% as acquisitions added 3 percentage points to growth. Operating profit was up 15%, driven by 30 basis points improvement in margin as we benefited from overhead leverage and synergies from M&A. Looking ahead, we are confident in our ability to continue driving margin improvement over the long term, supported by three clear levers. First, we're enhancing productivity through consistent execution of our MAT framework, delivering efficiencies from better purchasing and greater use of data and technology. Second, we're leveraging regional and group overheads. Third, we're delivering synergies from acquisitions, particularly in international. While opportunities exist in both regions, we expect faster margin progress in international with more incremental gains in North America. Over time, this should narrow the margin gap between the two regions. Operating profit grew 9%, reflecting a 10 basis points improvement in margin. operating profit grew 9% reflecting a 10 basis points improvement in margin In international, revenue growth was higher at 10% as acquisitions added 3 percentage points to growth. in international revenue growth was higher at 10% as acquisitions added 3 percentage points to growth Operating profit was up 15%, driven by 30 basis points improvement in margin as we benefited from overhead leverage and synergies from M&A. operating profit was up 15% driven by 30 basis points improvement in margin as we benefited from overhead leverage and synergies from m&a Looking ahead, we are confident in our ability to continue driving margin improvement over the long term, supported by three clear levers. looking ahead we are confident in our ability to continue driving margin improvement over the long term supported by three clear levers First, we're enhancing productivity through consistent execution of our MAT framework, delivering efficiencies from better purchasing and greater use of data and technology. first we're enhancing productivity through consistent execution of our mat framework delivering efficiencies from better purchasing and greater use of data and technology Second, we're leveraging regional and group overheads. second we're leveraging regional and group overheads Third, we're delivering synergies from acquisitions, particularly in international. While opportunities exist in both regions, we expect faster margin progress in international with more incremental gains in North America. third we're delivering synergies from acquisitions particularly in international. while opportunities exist in both regions we expect faster margin progress in international with more incremental gains in north america Over time, this should narrow the margin gap between the two regions. over time this should narrow the margin gap between the two regions Our capital allocation framework remains clear, disciplined, and unchanged. Our first priority is to invest in the business through CapEx to support growth where we generate returns north of 20%. We have also been using M&A to accelerate sectorization, particularly in Europe. Our focus is now shifting to bolt-on acquisitions such as vending and GPOs. Both forms of investment generate returns that are more than double our cost of capital and are value accretive for our shareholders. Our dividend policy remains unchanged with a payout of around 60% of underlying earnings. We continue to target a strong investment-grade credit profile with leverage of 1x-1.5x and any surplus capital returned to shareholders. Looking at the balance sheet now. As expected, leverage increased to 1.7x at the half year, reflecting our investment in growth. Our capital allocation framework remains clear, disciplined, and unchanged. our capital allocation framework remains clear disciplined and unchanged Our first priority is to invest in the business through CapEx to support growth where we generate returns north of 20%. our first priority is to invest in the business through capex to support growth where we generate returns north of 20% We have also been using M&A to accelerate sectorization, particularly in Europe. we have also been using m&a to accelerate sectorization particularly in europe Our focus is now shifting to bolt-on acquisitions such as vending and GPOs. our focus is now shifting to bolt-on acquisitions such as vending and gpos Both forms of investment generate returns that are more than double our cost of capital and are value accretive for our shareholders. both forms of investment generate returns that are more than double our cost of capital and are value accretive for our shareholders Our dividend policy remains unchanged with a payout of around 60% of underlying earnings. our dividend policy remains unchanged with a payout of around 60% of underlying earnings We continue to target a strong investment-grade credit profile with leverage of 1x-1.5x and any surplus capital returned to shareholders. we continue to target a strong investment-grade credit profile with leverage of 1x-1.5x and any surplus capital returned to shareholders Looking at the balance sheet now. looking at the balance sheet now As expected, leverage increased to 1.7x at the half year, reflecting our investment in growth. as expected leverage increased to 1.7x at the half year reflecting our investment in growth During the period, we completed the acquisition of Vermaat for $1.7 billion and more recently acquired Pro Care Management, a leading food and beverage GPO in Germany for $270 million. Dominic will discuss this acquisition in more detail shortly. Looking ahead, we expect to deleverage and return to our target range over time. Before turning to guidance, a quick word on the developments in the Middle East. While we have no direct exposure to the region, we're very well-positioned to manage any inflationary impact. As always, our approach starts with mitigation, followed by appropriate pricing. Around two-thirds of our contracts include dynamic pricing, and for the remaining fixed-price contracts, we have indexation clauses covering both food and labor costs. Smaller competitors and street alternatives typically have far fewer levers available to them. During the period, we completed the acquisition of Vermaat for $1.7 billion and more recently acquired Pro Care Management, a leading food and beverage GPO in Germany for $270 million. during the period we completed the acquisition of vermaat for $1.7 billion and more recently acquired pro care management a leading food and beverage gpo in germany for $270 million Dominic will discuss this acquisition in more detail shortly. dominic will discuss this acquisition in more detail shortly Looking ahead, we expect to deleverage and return to our target range over time. looking ahead we expect to deleverage and return to our target range over time Before turning to guidance, a quick word on the developments in the Middle East. before turning to guidance a quick word on the developments in the middle east While we have no direct exposure to the region, we're very well-positioned to manage any inflationary impact. while we have no direct exposure to the region we're very well-positioned to manage any inflationary impact As always, our approach starts with mitigation, followed by appropriate pricing. as always our approach starts with mitigation followed by appropriate pricing Around two-thirds of our contracts include dynamic pricing, and for the remaining fixed-price contracts, we have indexation clauses covering both food and labor costs. around two-thirds of our contracts include dynamic pricing and for the remaining fixed-price contracts we have indexation clauses covering both food and labor costs Smaller competitors and street alternatives typically have far fewer levers available to them. smaller competitors and street alternatives typically have far fewer levers available to them In periods of elevated inflation, our value advantage versus street pricing usually grows. Finally, full-year guidance. Based on our strong first half performance, we are raising our expectations for operating profit growth to above 11% on a constant currency basis. That reflects organic revenue growth of around 7%, around 2% profit growth from M&A, and continued margin expansion. With that, I'll hand it back to Dominic. In periods of elevated inflation, our value advantage versus street pricing usually grows. in periods of elevated inflation our value advantage versus street pricing usually grows Finally, full-year guidance. finally full-year guidance Based on our strong first half performance, we are raising our expectations for operating profit growth to above 11% on a constant currency basis. based on our strong first half performance we are raising our expectations for operating profit growth to above 11% on a constant currency basis That reflects organic revenue growth of around 7%, around 2% profit growth from M&A, and continued margin expansion. that reflects organic revenue growth of around 7% around 2% profit growth from m&a and continued margin expansion With that, I'll hand it back to Dominic. with that i'll hand it back to dominic

Speaker 1: Thanks, Petros. As you've seen today, we delivered another strong set of results and are well-positioned for continued growth. It really is a privilege to work for a company that touches so many lives. The strength of our model lies in its diversity and adaptability. We feed people every day in many captive environments, from school to retirement, wherever they learn, work, play, or heal. Humans are social beings. Wherever people come together, they eat and drink, and we're there to serve them. We don't believe that fundamental need will change regardless of how the world evolves or how AI transforms the economy. Our addressable market is expanding at 5% per annum and is worth around $360 billion. This growth reflects our expanding capabilities, entry into new subsectors, and deployments of more flexible operating models. Thanks, Petros. thanks petros As you've seen today, we delivered another strong set of results and are well-positioned for continued growth. as you've seen today we delivered another strong set of results and are well-positioned for continued growth It really is a privilege to work for a company that touches so many lives. it really is a privilege to work for a company that touches so many lives The strength of our model lies in its diversity and adaptability. the strength of our model lies in its diversity and adaptability We feed people every day in many captive environments, from school to retirement, wherever they learn, work, play, or heal. we feed people every day in many captive environments from school to retirement wherever they learn work play or heal Humans are social beings. humans are social beings Wherever people come together, they eat and drink, and we're there to serve them. wherever people come together they eat and drink and we're there to serve them We don't believe that fundamental need will change regardless of how the world evolves or how AI transforms the economy. we don't believe that fundamental need will change regardless of how the world evolves or how ai transforms the economy Our addressable market is expanding at 5% per annum and is worth around $360 billion. our addressable market is expanding at 5% per annum and is worth around $360 billion This growth reflects our expanding capabilities, entry into new subsectors, and deployments of more flexible operating models. this growth reflects our expanding capabilities entry into new subsectors and deployments of more flexible operating models At this growth rate, we estimate the market could reach around $600 billion by 2035. Following our exit from non-core markets, our portfolio is now more focused, with the top 10 countries representing 90% of the opportunity while retaining broad sector diversification across all core markets. Business & Industry alone represents a $130 billion market. It continues to be our best performing sector, delivering double-digit organic growth. Our subsector approach is a key strength, underpinning an extremely diverse client base that provides resilience and a significant runway for growth. Importantly, growth is not just dependent on securing new accounts. Our existing B&I tech clients are scaling with revenues from our top 10 tech clients up 36% over the past three years. We see significant opportunity across the AI ecosystem, and it's broader than big tech. At this growth rate, we estimate the market could reach around $600 billion by 2035. at this growth rate we estimate the market could reach around $600 billion by 2035 Following our exit from non-core markets, our portfolio is now more focused, with the top 10 countries representing 90% of the opportunity while retaining broad sector diversification across all core markets. following our exit from non-core markets our portfolio is now more focused with the top 10 countries representing 90% of the opportunity while retaining broad sector diversification across all core markets Business & Industry alone represents a $130 billion market. business & industry alone represents a $130 billion market It continues to be our best performing sector, delivering double-digit organic growth. it continues to be our best performing sector delivering double-digit organic growth Our subsector approach is a key strength, underpinning an extremely diverse client base that provides resilience and a significant runway for growth. our subsector approach is a key strength underpinning an extremely diverse client base that provides resilience and a significant runway for growth Importantly, growth is not just dependent on securing new accounts. importantly growth is not just dependent on securing new accounts Our existing B&I tech clients are scaling with revenues from our top 10 tech clients up 36% over the past three years. our existing b&i tech clients are scaling with revenues from our top 10 tech clients up 36% over the past three years We see significant opportunity across the AI ecosystem, and it's broader than big tech. we see significant opportunity across the ai ecosystem and it's broader than big tech The AI build-out spans everything from semiconductors and servers to data centers and power to the next wave of enterprise applications. We already work with more than 60 clients across this ecosystem, and that footprint is growing. As the next wave of AI companies reach fundable scale, small teams quickly scale into campus-style operations needing integrated services. Healthcare also represents a highly compelling growth opportunity, with healthcare across all settings expected to be the fastest-growing industry. Growth is being driven by structural and demographic changes as populations age and chronic conditions become more prevalent. AI is also likely to increase productivity, which can increase the number of patients being treated. The addressable market size today is around $90 billion and growing, with more than half of that still self-operated. Sports and leisure is another exciting area. The global market is expected to grow to $80 billion by 2030. The AI build-out spans everything from semiconductors and servers to data centers and power to the next wave of enterprise applications. the ai build-out spans everything from semiconductors and servers to data centers and power to the next wave of enterprise applications We already work with more than 60 clients across this ecosystem, and that footprint is growing. we already work with more than 60 clients across this ecosystem and that footprint is growing As the next wave of AI companies reach fundable scale, small teams quickly scale into campus-style operations needing integrated services. as the next wave of ai companies reach fundable scale small teams quickly scale into campus-style operations needing integrated services Healthcare also represents a highly compelling growth opportunity, with healthcare across all settings expected to be the fastest-growing industry. Growth is being driven by structural and demographic changes as populations age and chronic conditions become more prevalent. healthcare also represents a highly compelling growth opportunity with healthcare across all settings expected to be the fastest-growing industry. growth is being driven by structural and demographic changes as populations age and chronic conditions become more prevalent AI is also likely to increase productivity, which can increase the number of patients being treated. ai is also likely to increase productivity which can increase the number of patients being treated The addressable market size today is around $90 billion and growing, with more than half of that still self-operated. the addressable market size today is around $90 billion and growing with more than half of that still self-operated Sports and leisure is another exciting area. sports and leisure is another exciting area The global market is expected to grow to $80 billion by 2030. the global market is expected to grow to $80 billion by 2030 Through Levy, we are already a market leader in the U.S. and the U.K., with combined revenues of $5 billion. In the U.S., we now serve more than 350 venues, including around 40% of major professional sports venues. As venues host more non-game events such as concerts, we've unlocked additional revenue streams. Non-game events now represent around 25% of Levy revenue, and we expect that share to continue growing. Education is a roughly $100 billion market, with around half still self-operated, creating a substantial outsourcing opportunity. Budgets are under pressure. Outsourcing delivers cost efficiency and expectations around food quality, technology and compliance continue to rise. At the same time, allergen and food safety regulations are becoming more complex, increasing the value of scale and expertise. Through Levy, we are already a market leader in the U.S. and the U.K., with combined revenues of $5 billion. through levy we are already a market leader in the u.s and the u.k with combined revenues of $5 billion In the U.S., we now serve more than 350 venues, including around 40% of major professional sports venues. in the u.s we now serve more than 350 venues including around 40% of major professional sports venues As venues host more non-game events such as concerts, we've unlocked additional revenue streams. as venues host more non-game events such as concerts we've unlocked additional revenue streams Non-game events now represent around 25% of Levy revenue, and we expect that share to continue growing. non-game events now represent around 25% of levy revenue and we expect that share to continue growing Education is a roughly $100 billion market, with around half still self-operated, creating a substantial outsourcing opportunity. education is a roughly $100 billion market with around half still self-operated creating a substantial outsourcing opportunity Budgets are under pressure. budgets are under pressure Outsourcing delivers cost efficiency and expectations around food quality, technology and compliance continue to rise. outsourcing delivers cost efficiency and expectations around food quality technology and compliance continue to rise At the same time, allergen and food safety regulations are becoming more complex, increasing the value of scale and expertise. at the same time allergen and food safety regulations are becoming more complex increasing the value of scale and expertise We also see meaningful growth opportunities in defense, offshore and remote. These sectors carry high degrees of operational complexity, spanning compliance, security and logistics, which favors scaled operators with specialist expertise such as Compass. Building on our global experience, we established a specialist team to address the U.S. defense sector and recently secured and mobilized our first contract in this market. Turning to offshore and remote. Energy security concerns are driving increased investment and activity in this space. The sector is characterized by long-term contracts in safety-critical environments, oil rigs, mining sites, maritime vessels, where the barriers to entry are high and client retention is strong. We're often asked what's behind our continued success and market outperformance. It really comes down to two things. First, we operate a truly unique sector-led model. Our business is decentralized, with many of our brands still led by their original founder owner entrepreneurs. We also see meaningful growth opportunities in defense, offshore and remote. we also see meaningful growth opportunities in defense offshore and remote These sectors carry high degrees of operational complexity, spanning compliance, security and logistics, which favors scaled operators with specialist expertise such as Compass. these sectors carry high degrees of operational complexity spanning compliance security and logistics which favors scaled operators with specialist expertise such as compass Building on our global experience, we established a specialist team to address the U.S. defense sector and recently secured and mobilized our first contract in this market. building on our global experience we established a specialist team to address the u.s defense sector and recently secured and mobilized our first contract in this market Turning to offshore and remote. turning to offshore and remote Energy security concerns are driving increased investment and activity in this space. energy security concerns are driving increased investment and activity in this space The sector is characterized by long-term contracts in safety-critical environments, oil rigs, mining sites, maritime vessels, where the barriers to entry are high and client retention is strong. the sector is characterized by long-term contracts in safety-critical environments oil rigs mining sites maritime vessels where the barriers to entry are high and client retention is strong We're often asked what's behind our continued success and market outperformance. we're often asked what's behind our continued success and market outperformance It really comes down to two things. it really comes down to two things First, we operate a truly unique sector-led model. first we operate a truly unique sector-led model Our business is decentralized, with many of our brands still led by their original founder owner entrepreneurs. our business is decentralized with many of our brands still led by their original founder owner entrepreneurs That keeps us close to our clients, our consumers, and our markets. Second, we pair that local agility with the power of global scale, particularly in food procurement and technology. In short, we combine local relevance with global strength, the best of both worlds, and that's something that is genuinely unique in our industry. While we have strong competitive advantages across the market, it's worth noting that 85% of our wins come from first-time outsourcing and local operators. That means growth is largely structural, converting self-operated sites and winning against competitors who can't match our scale, technology or service quality. As Petros mentioned, in March, we acquired Pro Care Management, or PCM, a leading food and beverage GPO in Germany. This is fully aligned with our strategy of building procurement scale and capability at the country level. That keeps us close to our clients, our consumers, and our markets. that keeps us close to our clients our consumers and our markets Second, we pair that local agility with the power of global scale, particularly in food procurement and technology. second we pair that local agility with the power of global scale particularly in food procurement and technology In short, we combine local relevance with global strength, the best of both worlds, and that's something that is genuinely unique in our industry. in short we combine local relevance with global strength the best of both worlds and that's something that is genuinely unique in our industry While we have strong competitive advantages across the market, it's worth noting that 85% of our wins come from first-time outsourcing and local operators. while we have strong competitive advantages across the market it's worth noting that 85% of our wins come from first-time outsourcing and local operators That means growth is largely structural, converting self-operated sites and winning against competitors who can't match our scale, technology or service quality. that means growth is largely structural converting self-operated sites and winning against competitors who can't match our scale technology or service quality As Petros mentioned, in March, we acquired Pro Care Management, or PCM, a leading food and beverage GPO in Germany. as petros mentioned in march we acquired pro care management or pcm a leading food and beverage gpo in germany This is fully aligned with our strategy of building procurement scale and capability at the country level. this is fully aligned with our strategy of building procurement scale and capability at the country level PCM brings with it an advanced procurement technology platform with clear potential to be deployed across other markets. This high-quality acquisition means we now operate GPOs in five of our top 10 markets, further strengthening our competitive advantage. We're also investing in AI and data to accelerate growth and improve productivity, particularly across sales, retention and operations, freeing up our unit managers to spend more time with their clients. Let me give you some examples. We're using data and AI to drive consistent execution of the sales funnel, which we expect to translate into higher conversion over time. Leveraging more than a decade of proprietary sales data, AI-powered tools support bid preparation, predict win probability, and guide next best actions. We know from the data that disciplined execution of best practice selling behaviors improves win rates. PCM brings with it an advanced procurement technology platform with clear potential to be deployed across other markets. pcm brings with it an advanced procurement technology platform with clear potential to be deployed across other markets This high-quality acquisition means we now operate GPOs in five of our top 10 markets, further strengthening our competitive advantage. this high-quality acquisition means we now operate gpos in five of our top 10 markets further strengthening our competitive advantage We're also investing in AI and data to accelerate growth and improve productivity, particularly across sales, retention and operations, freeing up our unit managers to spend more time with their clients. we're also investing in ai and data to accelerate growth and improve productivity particularly across sales retention and operations freeing up our unit managers to spend more time with their clients Let me give you some examples. let me give you some examples We're using data and AI to drive consistent execution of the sales funnel, which we expect to translate into higher conversion over time. we're using data and ai to drive consistent execution of the sales funnel which we expect to translate into higher conversion over time Leveraging more than a decade of proprietary sales data, AI-powered tools support bid preparation, predict win probability, and guide next best actions. leveraging more than a decade of proprietary sales data ai-powered tools support bid preparation predict win probability and guide next best actions We know from the data that disciplined execution of best practice selling behaviors improves win rates. we know from the data that disciplined execution of best practice selling behaviors improves win rates Similarly, in retention, we're applying AI across the full life cycle, combining client, consumer and operational insights. We track sentiment, monitor issues and resolution times, and use predictive models to flag accounts at risk, giving our teams the opportunity to intervene earlier, address issues proactively, and increase preemption rates over time. Finally, we deploy Centric OS, developed by Compass Digital Labs to support our unit managers. We've now rolled it out across around a quarter of our units in North America. It provides better data for demand forecasting, menu and inventory planning, reporting, and labor optimization, enabling unit managers to continuously improve the offer for clients. Just as importantly, it frees up time, allowing our operators to spend more time with clients and consumers where it matters most. In summary, we operate in a highly attractive market that keeps on growing. That's the foundation everything else builds on. Similarly, in retention, we're applying AI across the full life cycle, combining client, consumer and operational insights. similarly in retention we're applying ai across the full life cycle combining client consumer and operational insights We track sentiment, monitor issues and resolution times, and use predictive models to flag accounts at risk, giving our teams the opportunity to intervene earlier, address issues proactively, and increase preemption rates over time. we track sentiment monitor issues and resolution times and use predictive models to flag accounts at risk giving our teams the opportunity to intervene earlier address issues proactively and increase preemption rates over time Finally, we deploy Centric OS, developed by Compass Digital Labs to support our unit managers. finally we deploy centric os developed by compass digital labs to support our unit managers We've now rolled it out across around a quarter of our units in North America. It provides better data for demand forecasting, menu and inventory planning, reporting, and labor optimization, enabling unit managers to continuously improve the offer for clients. we've now rolled it out across around a quarter of our units in north america. it provides better data for demand forecasting menu and inventory planning reporting and labor optimization enabling unit managers to continuously improve the offer for clients Just as importantly, it frees up time, allowing our operators to spend more time with clients and consumers where it matters most. just as importantly it frees up time allowing our operators to spend more time with clients and consumers where it matters most In summary, we operate in a highly attractive market that keeps on growing. in summary we operate in a highly attractive market that keeps on growing That's the foundation everything else builds on. that's the foundation everything else builds on What makes us different is how we combine local offers with global scale. Our teams on the ground know their clients inside out, and they're backed by the resources and capabilities of a global organization. That's a powerful combination and hard to replicate. We keep investing in technology, in our people, in innovation, because that's what keeps us ahead. You've seen today how AI and digital tools are already making a real difference across sales, retention, and unit operations. Our results demonstrate the strength of our operating model and the scale of the opportunities ahead. This underpins our confidence in delivering against our growth algorithm of high single digits operating profit growth. For 2026, we expect to do even better, having raised our operating profit growth guidance to above 11%. With that, we'll open the call for questions. The operator will provide instructions. What makes us different is how we combine local offers with global scale. what makes us different is how we combine local offers with global scale Our teams on the ground know their clients inside out, and they're backed by the resources and capabilities of a global organization. our teams on the ground know their clients inside out and they're backed by the resources and capabilities of a global organization That's a powerful combination and hard to replicate. that's a powerful combination and hard to replicate We keep investing in technology, in our people, in innovation, because that's what keeps us ahead. we keep investing in technology in our people in innovation because that's what keeps us ahead You've seen today how AI and digital tools are already making a real difference across sales, retention, and unit operations. you've seen today how ai and digital tools are already making a real difference across sales retention and unit operations Our results demonstrate the strength of our operating model and the scale of the opportunities ahead. our results demonstrate the strength of our operating model and the scale of the opportunities ahead This underpins our confidence in delivering against our growth algorithm of high single digits operating profit growth. this underpins our confidence in delivering against our growth algorithm of high single digits operating profit growth For 2026, we expect to do even better, having raised our operating profit growth guidance to above 11%. for 2026 we expect to do even better having raised our operating profit growth guidance to above 11% With that, we'll open the call for questions. with that we'll open the call for questions The operator will provide instructions. the operator will provide instructions And please remember, you'll need to be connected by a phone- And please remember, you'll need to be connected by a phone- and please remember you'll need to be connected by a phone-

Speaker 14: This meeting is being recorded. This meeting is being recorded. this meeting is being recorded

Speaker 1: Operator, over to you. Operator, over to you. operator over to you

Speaker 10: Thank you. Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. Please stand by while we compile the list. Thank you. Our first question will come from Leo Carrington of Citi. Your line is open. Please go ahead. Thank you. thank you Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. ladies and gentlemen if you would like to ask a question please press star one on your telephone keypad Please stand by while we compile the list. please stand by while we compile the list Thank you. thank you Our first question will come from Leo Carrington of Citi. our first question will come from leo carrington of citi Your line is open. your line is open Please go ahead. please go ahead

Speaker 8: Good morning. Thank you for taking my questions. Please can I first ask a couple of follow-ups on your comments, Dominic, on B&I strength and sports and leisure. In terms of sports and leisure, particularly in international, I noticed there was a long-term deal with The Jockey Club. There was this first time, I think, outsourcing Old Trafford. Is this market much less mature than the U.S. and are there more opportunities like this? Then on B&I, is industry similarly dynamic as the office sub-segment? Generally outside of that strength in tech that you highlighted, I'm interested in your legacy on the outsourcing growth drivers, given that employment growth is flatter, although return to office is still a theme. Interested in knowing what your ex-tech clients are saying. Thank you. Good morning. good morning Thank you for taking my questions. thank you for taking my questions Please can I first ask a couple of follow-ups on your comments, Dominic, on B&I strength and sports and leisure. please can i first ask a couple of follow-ups on your comments dominic on b&i strength and sports and leisure In terms of sports and leisure, particularly in international, I noticed there was a long-term deal with The Jockey Club. in terms of sports and leisure particularly in international i noticed there was a long-term deal with the jockey club There was this first time, I think, outsourcing Old Trafford. there was this first time i think outsourcing old trafford Is this market much less mature than the U.S. and are there more opportunities like this? is this market much less mature than the u.s and are there more opportunities like this Then on B&I, is industry similarly dynamic as the office sub-segment? then on b&i is industry similarly dynamic as the office sub-segment Generally outside of that strength in tech that you highlighted, I'm interested in your legacy on the outsourcing growth drivers, given that employment growth is flatter, although return to office is still a theme. generally outside of that strength in tech that you highlighted i'm interested in your legacy on the outsourcing growth drivers given that employment growth is flatter although return to office is still a theme Interested in knowing what your ex-tech clients are saying. interested in knowing what your ex-tech clients are saying Thank you. thank you

Speaker 1: Thank you, Leo. Thanks for those questions. Yeah, look, I think you're absolutely right. I mean, you referenced The Jockey Club and Manchester United, both of which are significant first-time outsourcing opportunities for us. Those are in the U.K. Of course, the U.K. has been a country of great success for us in the sports and leisure sector. Obviously, with the likes of Twickenham, Wimbledon, Tottenham Hotspur, the O2, the ExCeL. The U.K. is very much like the U.S. for us in the sports and leisure sector. Actually, where we see the bigger opportunities across the international markets of Europe and Asia-Pacific, where we've had success with the Australian Open in Melbourne and a number of football clubs across Europe. We're actually expanding our footprint. Thank you, Leo. thank you leo Thanks for those questions. thanks for those questions Yeah, look, I think you're absolutely right. yeah look i think you're absolutely right I mean, you referenced The Jockey Club and Manchester United, both of which are significant first-time outsourcing opportunities for us. i mean you referenced the jockey club and manchester united both of which are significant first-time outsourcing opportunities for us Those are in the U.K. those are in the u.k Of course, the U.K. has been a country of great success for us in the sports and leisure sector. of course the u.k has been a country of great success for us in the sports and leisure sector Obviously, with the likes of Twickenham, Wimbledon, Tottenham Hotspur, the O2, the ExCeL. obviously with the likes of twickenham wimbledon tottenham hotspur the o2 the excel The U.K. is very much like the U.S. for us in the sports and leisure sector. the u.k is very much like the u.s for us in the sports and leisure sector Actually, where we see the bigger opportunities across the international markets of Europe and Asia-Pacific, where we've had success with the Australian Open in Melbourne and a number of football clubs across Europe. actually where we see the bigger opportunities across the international markets of europe and asia-pacific where we've had success with the australian open in melbourne and a number of football clubs across europe We're actually expanding our footprint. we're actually expanding our footprint We're taking Levy internationally, so we can deliver the sports and leisure experience of the Levy brand, which is proven in the U.S. and the U.K., by deploying our local resources, our buying power, and our logistics capability, as well as our ability to source labor. Ensuring that we're using the Levy brand standards to deliver the quality of experience to our clients. What we see there is a lot of investment coming into Europe and internationally, in particular from the U.S., where there's a level of expectation of comparable standards in the hospitality and concessions to those which we've seen in the U.S. and the U.K. We think it's a really exciting opportunity for us. We're taking Levy internationally, so we can deliver the sports and leisure experience of the Levy brand, which is proven in the U.S. and the U.K., by deploying our local resources, our buying power, and our logistics capability, as well as our ability to source labor. we're taking levy internationally so we can deliver the sports and leisure experience of the levy brand which is proven in the u.s and the u.k by deploying our local resources our buying power and our logistics capability as well as our ability to source labor Ensuring that we're using the Levy brand standards to deliver the quality of experience to our clients. ensuring that we're using the levy brand standards to deliver the quality of experience to our clients What we see there is a lot of investment coming into Europe and internationally, in particular from the U.S., where there's a level of expectation of comparable standards in the hospitality and concessions to those which we've seen in the U.S. and the U.K. what we see there is a lot of investment coming into europe and internationally in particular from the u.s where there's a level of expectation of comparable standards in the hospitality and concessions to those which we've seen in the u.s and the u.k We think it's a really exciting opportunity for us. we think it's a really exciting opportunity for us I mean, you've seen our growth rates in the region are sort of around 14%, 15%. We think we can do, you know, that and better still as we organize even more for the opportunity. It's definitely a very exciting area for us. I'd also call out the area of conference and events. It's been a very big part of our business in the U.S. and increasingly in the U.K., with the NEC being a latest win for us in the U.K. and operated alongside the ExCeL. We see that opportunity across many of the European markets in the major European cities too. It's a sector that we're organizing for now. I mean, you've seen our growth rates in the region are sort of around 14%, 15%. i mean you've seen our growth rates in the region are sort of around 14% 15% We think we can do, you know, that and better still as we organize even more for the opportunity. we think we can do you know that and better still as we organize even more for the opportunity It's definitely a very exciting area for us. it's definitely a very exciting area for us I'd also call out the area of conference and events. i'd also call out the area of conference and events It's been a very big part of our business in the U.S. and increasingly in the U.K., with the NEC being a latest win for us in the U.K. and operated alongside the ExCeL. it's been a very big part of our business in the u.s and increasingly in the u.k with the nec being a latest win for us in the u.k and operated alongside the excel We see that opportunity across many of the European markets in the major European cities too. we see that opportunity across many of the european markets in the major european cities too It's a sector that we're organizing for now. it's a sector that we're organizing for now We think it's going to contribute accretive growth to international for some time to come. In terms of your question around B&I and sort of industry versus the offices you put in and what the drivers are. I mean, I think one that I would call out immediately. I mean, first of all, again, you know, looking at the performance of B&I in the context of the group performance, it's been, you know, our fastest growing sector for a number of years now. It's accreted growth in North America and in our international markets. There's a significant opportunity from first-time outsourcing from the opening of new facilities, new buildings. Here in the U.K., we're seeing that, aren't we, with the new HSBC building, with the JPMorgan tower being announced in Canary Wharf. We think it's going to contribute accretive growth to international for some time to come. In terms of your question around B&I and sort of industry versus the offices you put in and what the drivers are. we think it's going to contribute accretive growth to international for some time to come. in terms of your question around b&i and sort of industry versus the offices you put in and what the drivers are I mean, I think one that I would call out immediately. i mean i think one that i would call out immediately I mean, first of all, again, you know, looking at the performance of B&I in the context of the group performance, it's been, you know, our fastest growing sector for a number of years now. i mean first of all again you know looking at the performance of b&i in the context of the group performance it's been you know our fastest growing sector for a number of years now It's accreted growth in North America and in our international markets. it's accreted growth in north america and in our international markets There's a significant opportunity from first-time outsourcing from the opening of new facilities, new buildings. there's a significant opportunity from first-time outsourcing from the opening of new facilities new buildings Here in the U.K., we're seeing that, aren't we, with the new HSBC building, with the JPMorgan tower being announced in Canary Wharf. here in the u.k we're seeing that aren't we with the new hsbc building with the jpmorgan tower being announced in canary wharf All of these are opportunities for outsourcing at scale in new facilities, which are keeping the sector buoyant. I think what's also exciting for us there is, you know, when we go through periods of higher inflation, as we are seeing today and likely will experience over the coming months and possibly years, as the impacts of the events in the Middle East flow through food cost inflation. You know, we have a significant competitive advantage, and that, you know, that plays out in our relative pricing against the street, where we're not tied to menus, we don't have the utility costs, and we don't have the burden in particular of energy. All of these are opportunities for outsourcing at scale in new facilities, which are keeping the sector buoyant. all of these are opportunities for outsourcing at scale in new facilities which are keeping the sector buoyant I think what's also exciting for us there is, you know, when we go through periods of higher inflation, as we are seeing today and likely will experience over the coming months and possibly years, as the impacts of the events in the Middle East flow through food cost inflation. i think what's also exciting for us there is you know when we go through periods of higher inflation as we are seeing today and likely will experience over the coming months and possibly years as the impacts of the events in the middle east flow through food cost inflation You know, we have a significant competitive advantage, and that, you know, that plays out in our relative pricing against the street, where we're not tied to menus, we don't have the utility costs, and we don't have the burden in particular of energy. you know we have a significant competitive advantage and that you know that plays out in our relative pricing against the street where we're not tied to menus we don't have the utility costs and we don't have the burden in particular of energy Therefore, I believe that plays out both in terms of our competitiveness for the consumer, who will choose to stay on site and gives us the benefit through like-for-like volumes. But also in an acceleration of outsourcing and of the benefit of the larger outsourcers who've got, you know, a better ability to manage costs than the smaller players. I think those open up opportunities in terms of like-for-like, and our ability to take share. We continue to see a sort of buoyancy within the overall B&I sector. As we talked about today in the presentation, you know, the AI ecosystem and phenomena isn't just about the tech players, it's about the entirety of the supply chain. Therefore, I believe that plays out both in terms of our competitiveness for the consumer, who will choose to stay on site and gives us the benefit through like-for-like volumes. therefore i believe that plays out both in terms of our competitiveness for the consumer who will choose to stay on site and gives us the benefit through like-for-like volumes But also in an acceleration of outsourcing and of the benefit of the larger outsourcers who've got, you know, a better ability to manage costs than the smaller players. but also in an acceleration of outsourcing and of the benefit of the larger outsourcers who've got you know a better ability to manage costs than the smaller players I think those open up opportunities in terms of like-for-like, and our ability to take share. i think those open up opportunities in terms of like-for-like and our ability to take share We continue to see a sort of buoyancy within the overall B&I sector. we continue to see a sort of buoyancy within the overall b&i sector As we talked about today in the presentation, you know, the AI ecosystem and phenomena isn't just about the tech players, it's about the entirety of the supply chain. as we talked about today in the presentation you know the ai ecosystem and phenomena isn't just about the tech players it's about the entirety of the supply chain That means that there is a level of manufacturing too, which would fall within our business portfolio, where we expect to see growth and opportunity. I'd also point to the defense supply chain and the scaling of the defense manufacturing in many of the Western countries where, you know, we've doubled down on that footprint. We believe that that's going to create further opportunity in defense. I think we're constantly seeing trends that, you know, benefit our business as long as we can continue to offer quality at the right cost. We remain very excited about the potential for B&I and sports and leisure going forward. That means that there is a level of manufacturing too, which would fall within our business portfolio, where we expect to see growth and opportunity. that means that there is a level of manufacturing too which would fall within our business portfolio where we expect to see growth and opportunity I'd also point to the defense supply chain and the scaling of the defense manufacturing in many of the Western countries where, you know, we've doubled down on that footprint. i'd also point to the defense supply chain and the scaling of the defense manufacturing in many of the western countries where you know we've doubled down on that footprint We believe that that's going to create further opportunity in defense. we believe that that's going to create further opportunity in defense I think we're constantly seeing trends that, you know, benefit our business as long as we can continue to offer quality at the right cost. i think we're constantly seeing trends that you know benefit our business as long as we can continue to offer quality at the right cost We remain very excited about the potential for B&I and sports and leisure going forward. we remain very excited about the potential for b&i and sports and leisure going forward

Speaker 8: Thank you, Dominic. Thank you, Dominic. thank you dominic

Speaker 10: Thank you. Our next question comes from Jamie Rollo of Morgan Stanley. Your line is open. Please go ahead. Thank you. thank you Our next question comes from Jamie Rollo of Morgan Stanley. our next question comes from jamie rollo of morgan stanley Your line is open. your line is open Please go ahead. please go ahead

Speaker 5: Thanks. Good morning. Three questions, please. First of all, just back on the net new slowdown to under 4% in Q2. I appreciate it's only a quarter and you've given us good figures for the pipeline and so on. Your retention was also down year on year, and there's just been some general concern from investors about the competitive environment. Could you explain why the bad weather didn't hit like-for-like volumes? Also talk about why that did hit client mobilization, and also why that retention number was down a bit. Also talk about your confidence level on the net new re-accelerating in the back half of the year and the sort of the cadence of that. Second question, bit shorter, what's your pricing expectation for the second half now, given the sort of inflation pick-up? Thanks. thanks Good morning. good morning Three questions, please. three questions please First of all, just back on the net new slowdown to under 4% in Q2. first of all just back on the net new slowdown to under 4% in q2 I appreciate it's only a quarter and you've given us good figures for the pipeline and so on. i appreciate it's only a quarter and you've given us good figures for the pipeline and so on Your retention was also down year on year, and there's just been some general concern from investors about the competitive environment. your retention was also down year on year and there's just been some general concern from investors about the competitive environment Could you explain why the bad weather didn't hit like-for-like volumes? could you explain why the bad weather didn't hit like-for-like volumes Also talk about why that did hit client mobilization, and also why that retention number was down a bit. also talk about why that did hit client mobilization and also why that retention number was down a bit Also talk about your confidence level on the net new re-accelerating in the back half of the year and the sort of the cadence of that. also talk about your confidence level on the net new re-accelerating in the back half of the year and the sort of the cadence of that Second question, bit shorter, what's your pricing expectation for the second half now, given the sort of inflation pick-up? second question bit shorter what's your pricing expectation for the second half now given the sort of inflation pick-up Finally, just on M&A, you're shifting to bolt-ons you said, Petros, I mean, what's the likelihood, do you think, of a buyback announcement later this year? How is the pipeline looking for deals? Thank you. Finally, just on M&A, you're shifting to bolt-ons you said, Petros, I mean, what's the likelihood, do you think, of a buyback announcement later this year? finally just on m&a you're shifting to bolt-ons you said petros i mean what's the likelihood do you think of a buyback announcement later this year How is the pipeline looking for deals? how is the pipeline looking for deals Thank you. thank you

Speaker 1: Thank you, Jamie. Good morning. Let me have a go at your first question and then I'll let Petros add any color and then pick up on pricing and M&A. Look, yeah, we're highly confident in the outlook for the second half of the year. We've got high levels of assurance that we'll close the year in the 4%-5% range. As you've seen today, our last 12 months metric is in the range of 4%-5%, and this will be the fifth year where we're in our 4%-5% net new range. As you rightly say, Jamie, there's always gonna be puts and takes in net new between quarters. Thank you, Jamie. thank you jamie Good morning. good morning Let me have a go at your first question and then I'll let Petros add any color and then pick up on pricing and M&A. let me have a go at your first question and then i'll let petros add any color and then pick up on pricing and m&a Look, yeah, we're highly confident in the outlook for the second half of the year. look yeah we're highly confident in the outlook for the second half of the year We've got high levels of assurance that we'll close the year in the 4%-5% range. we've got high levels of assurance that we'll close the year in the 4%-5% range As you've seen today, our last 12 months metric is in the range of 4%-5%, and this will be the fifth year where we're in our 4%-5% net new range. as you've seen today our last 12 months metric is in the range of 4%-5% and this will be the fifth year where we're in our 4%-5% net new range As you rightly say, Jamie, there's always gonna be puts and takes in net new between quarters. as you rightly say jamie there's always gonna be puts and takes in net new between quarters If we lose just a couple of days of opening, that does have an impact on net new, as we did to weather. We lost, you know, half a week in some instances, if not a week, because of delays as a result of the weather impact. That has had an impact in the quarter. Retention's always bumpy at the timing of when contracts run on and off. Again, I'd ask you to look at the long term trends. We've been in that 4%-5% range now for what will be five years. We've been trending above 96% for many years now. There's a level of sustainability and consistency of the business, which, you know, we certainly didn't witness pre-COVID and which I'm very confident in. If we lose just a couple of days of opening, that does have an impact on net new, as we did to weather. if we lose just a couple of days of opening that does have an impact on net new as we did to weather We lost, you know, half a week in some instances, if not a week, because of delays as a result of the weather impact. we lost you know half a week in some instances if not a week because of delays as a result of the weather impact That has had an impact in the quarter. that has had an impact in the quarter Retention's always bumpy at the timing of when contracts run on and off. retention's always bumpy at the timing of when contracts run on and off Again, I'd ask you to look at the long term trends. again i'd ask you to look at the long term trends We've been in that 4%-5% range now for what will be five years. we've been in that 4%-5% range now for what will be five years We've been trending above 96% for many years now. we've been trending above 96% for many years now There's a level of sustainability and consistency of the business, which, you know, we certainly didn't witness pre-COVID and which I'm very confident in. there's a level of sustainability and consistency of the business which you know we certainly didn't witness pre-covid and which i'm very confident in Why is that? It's underpinned by, you know, ever more data around the pipeline. You've seen our new business wins on an ARO basis are at $4.1 billion and growing very strongly. You know, we talked today about the AI benefit to sales and retention. We think that that's going to yield further opportunity for us, you know, and putting ever more pressure on us in the business to do better within the 4%-5% range because we believe we can. The last point I'd say on that is, if you, if you think back and you know us long, a long time now, Jamie, what's truly different here is that our international region is performing at a par with North America. You know, North America is doing what it's always done. Why is that? why is that It's underpinned by, you know, ever more data around the pipeline. it's underpinned by you know ever more data around the pipeline You've seen our new business wins on an ARO basis are at $4.1 billion and growing very strongly. you've seen our new business wins on an aro basis are at $4.1 billion and growing very strongly You know, we talked today about the AI benefit to sales and retention. you know we talked today about the ai benefit to sales and retention We think that that's going to yield further opportunity for us, you know, and putting ever more pressure on us in the business to do better within the 4% - 5% range because we believe we can. we think that that's going to yield further opportunity for us you know and putting ever more pressure on us in the business to do better within the 4% - 5% range because we believe we can The last point I'd say on that is, if you, if you think back and you know us long, a long time now, Jamie, what's truly different here is that our international region is performing at a par with North America. the last point i'd say on that is if you if you think back and you know us long a long time now jamie what's truly different here is that our international region is performing at a par with north america You know, North America is doing what it's always done. you know north america is doing what it's always done We're in an environment where we're seeing super scaling in North America and some really material contracts. Whether those are in tech, defense, healthcare, education, we see some fantastic opportunity. What's really exciting is what we're doing in international and the fact now that we're growing consistently at a par. That really is the delta in our performance, we think that there's a level of consistency to that which with confidence about going forward. You will see as a result an acceleration in the second half, which, you know, will take us very positively into 2026, 2027 and beyond. We're in an environment where we're seeing super scaling in North America and some really material contracts. we're in an environment where we're seeing super scaling in north america and some really material contracts Whether those are in tech, defense, healthcare, education, we see some fantastic opportunity. whether those are in tech defense healthcare education we see some fantastic opportunity What's really exciting is what we're doing in international and the fact now that we're growing consistently at a par. what's really exciting is what we're doing in international and the fact now that we're growing consistently at a par That really is the delta in our performance, we think that there's a level of consistency to that which with confidence about going forward. that really is the delta in our performance we think that there's a level of consistency to that which with confidence about going forward You will see as a result an acceleration in the second half, which, you know, will take us very positively into 2026, 2027 and beyond. you will see as a result an acceleration in the second half which you know will take us very positively into 2026 2027 and beyond

Speaker 11: Only thing I'm going to ask Dominic on the organic, let's also remind ourselves we have been delivering positive volume for the last four years. We're operating now in 2027, a fully normalized world. We have about 70 basis points of the tailwind there, which plays back to our competitiveness within the street level, and the good bits of our things to do with the clients. To your question on pricing, I think we're running around 2.7%. Remember, we mitigate before we go to clients to discussing appropriate pricing. We're factoring thereabout the same level of pricing for the balance to grow, subject to what happens in the global, in the global landscape with the Iran conflict. Only thing I'm going to ask Dominic on the organic, let's also remind ourselves we have been delivering positive volume for the last four years. only thing i'm going to ask dominic on the organic let's also remind ourselves we have been delivering positive volume for the last four years We're operating now in 2027, a fully normalized world. we're operating now in 2027 a fully normalized world We have about 70 basis points of the tailwind there, which plays back to our competitiveness within the street level, and the good bits of our things to do with the clients. we have about 70 basis points of the tailwind there which plays back to our competitiveness within the street level and the good bits of our things to do with the clients To your question on pricing, I think we're running around 2.7%. to your question on pricing i think we're running around 2.7% Remember, we mitigate before we go to clients to discussing appropriate pricing. remember we mitigate before we go to clients to discussing appropriate pricing We're factoring thereabout the same level of pricing for the balance to grow, subject to what happens in the global, in the global landscape with the Iran conflict. we're factoring thereabout the same level of pricing for the balance to grow subject to what happens in the global in the global landscape with the iran conflict If you look at the oil prices, they are running, you know, above $100. I think the gist here is we do have the resilience in the business and the experience to navigate this through, if it emerges in the second half or in fiscal year 2027. When it comes to the M&A, I just want to remind us, when you see our profit growth this year, there is a very good contribution from M&A, which is a matter of executing our integrations, executing our business cases, both when it comes to organic and margin expansion. We're pleased with how the M&As are performing. As we move forward, we have come to the near completion of the medium-sized sectorization for Europe. If you look at the oil prices, they are running, you know, above $100. if you look at the oil prices they are running you know above $100 I think the gist here is we do have the resilience in the business and the experience to navigate this through, if it emerges in the second half or in fiscal year 2027. i think the gist here is we do have the resilience in the business and the experience to navigate this through if it emerges in the second half or in fiscal year 2027 When it comes to the M&A, I just want to remind us, when you see our profit growth this year, there is a very good contribution from M&A, which is a matter of executing our integrations, executing our business cases, both when it comes to organic and margin expansion. when it comes to the m&a i just want to remind us when you see our profit growth this year there is a very good contribution from m&a which is a matter of executing our integrations executing our business cases both when it comes to organic and margin expansion We're pleased with how the M&As are performing. we're pleased with how the m&as are performing As we move forward, we have come to the near completion of the medium-sized sectorization for Europe. as we move forward we have come to the near completion of the medium-sized sectorization for europe We do expect to continue to invest in both zones in unattended and GPOs, which is a strategic priority for us. As we go to end of September, you know, to the full year, we're gonna update you in November, what is gonna be our capital allocation choice, subject to M&A pipeline. We do expect to continue to invest in both zones in unattended and GPOs, which is a strategic priority for us. we do expect to continue to invest in both zones in unattended and gpos which is a strategic priority for us As we go to end of September, you know, to the full year, we're gonna update you in November, what is gonna be our capital allocation choice, subject to M&A pipeline. as we go to end of september you know to the full year we're gonna update you in november what is gonna be our capital allocation choice subject to m&a pipeline

Speaker 5: Okay. Thank you very much. Okay. okay Thank you very much. thank you very much

Speaker 10: Thank you. Once again, as a reminder, ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. Thank you. We will now move on to our next question from Jaafar Mestari of BNP Paribas. Your line is open. Please go ahead. Thank you. thank you Once again, as a reminder, ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. once again as a reminder ladies and gentlemen if you would like to ask a question please press star one on your telephone keypad Thank you. thank you We will now move on to our next question from Jaafar Mestari of BNP Paribas. we will now move on to our next question from jaafar mestari of bnp paribas Your line is open. your line is open Please go ahead. please go ahead

Speaker 4: Hi. Good morning. I have three questions, please. First one is on acquisition synergies, which you mentioned is one of the reasons for the strong margins this half. I don't assume that's Vermaat yet, because you've only had your hands on it for a few weeks in the half. So really curious to understand what the process is for some of the acquisitions you've integrated sometimes two years ago now, and whether we should think that the big push you've done will result in a couple of years now of continuing to take costs out and improving on those. Thank you for the market commentary. It almost feels like a like a mini investor day. Hi. hi Good morning. good morning I have three questions, please. i have three questions please First one is on acquisition synergies, which you mentioned is one of the reasons for the strong margins this half. first one is on acquisition synergies which you mentioned is one of the reasons for the strong margins this half I don't assume that's Vermaat yet, because you've only had your hands on it for a few weeks in the half. i don't assume that's vermaat yet because you've only had your hands on it for a few weeks in the half So really curious to understand what the process is for some of the acquisitions you've integrated sometimes two years ago now, and whether we should think that the big push you've done will result in a couple of years now of continuing to take costs out and improving on those. so really curious to understand what the process is for some of the acquisitions you've integrated sometimes two years ago now and whether we should think that the big push you've done will result in a couple of years now of continuing to take costs out and improving on those Thank you for the market commentary. thank you for the market commentary It almost feels like a like a mini investor day. it almost feels like a like a mini investor day I don't know if you've done more thinking, or if you've shared more thinking that you would usually share at this stage of the year. One segment where you seem very excited is healthcare, and that's global, I think, your comments. Healthcare global, you state should be the fastest growing vertical. I'm gonna use the dollar figures you report for North American Healthcare. I'm sure this doesn't add up with organic growth, I don't think there's disposals in North American Healthcare. On those dollar figures, North American Healthcare in H1 2026 is growing 4.1%, which is the lowest growth in your North American portfolio. Just curious how we reconcile those exciting opportunities in mediums and healthcare and the current trends. It wasn't dissimilar last year. I don't know if you've done more thinking, or if you've shared more thinking that you would usually share at this stage of the year. i don't know if you've done more thinking or if you've shared more thinking that you would usually share at this stage of the year One segment where you seem very excited is healthcare, and that's global, I think, your comments. one segment where you seem very excited is healthcare and that's global i think your comments Healthcare global, you state should be the fastest growing vertical. healthcare global you state should be the fastest growing vertical I'm gonna use the dollar figures you report for North American Healthcare. i'm gonna use the dollar figures you report for north american healthcare I'm sure this doesn't add up with organic growth, I don't think there's disposals in North American Healthcare. i'm sure this doesn't add up with organic growth i don't think there's disposals in north american healthcare On those dollar figures, North American Healthcare in H1 2026 is growing 4.1%, which is the lowest growth in your North American portfolio. on those dollar figures north american healthcare in h1 2026 is growing 4.1% which is the lowest growth in your north american portfolio Just curious how we reconcile those exciting opportunities in mediums and healthcare and the current trends. just curious how we reconcile those exciting opportunities in mediums and healthcare and the current trends It wasn't dissimilar last year. it wasn't dissimilar last year Is it a bit more pain now and then some growth? Is it mostly international? How do I make it make sense, please? Lastly, in terms of the AI ecosystem, I'm conscious you don't necessarily have the same public relations policy as some of your competitors, but, you know, some of them came out with big press releases that they're gonna have data center revenues starting in 2026. Just curious where you are there. Is it something that's gonna be very much ad hoc? Because as you said, you have relationships with a lot of these participants already. Is it just you're not going to have anything very big from data center contracts in 2026? Is it a bit more pain now and then some growth? is it a bit more pain now and then some growth Is it mostly international? is it mostly international How do I make it make sense, please? how do i make it make sense please Lastly, in terms of the AI ecosystem, I'm conscious you don't necessarily have the same public relations policy as some of your competitors, but, you know, some of them came out with big press releases that they're gonna have data center revenues starting in 2026. lastly in terms of the ai ecosystem i'm conscious you don't necessarily have the same public relations policy as some of your competitors but you know some of them came out with big press releases that they're gonna have data center revenues starting in 2026 Just curious where you are there. just curious where you are there Is it something that's gonna be very much ad hoc? is it something that's gonna be very much ad hoc Because as you said, you have relationships with a lot of these participants already. because as you said you have relationships with a lot of these participants already Is it just you're not going to have anything very big from data center contracts in 2026? is it just you're not going to have anything very big from data center contracts in 2026

Speaker 1: Thank you, Jaafar. Let me take those in reverse order, and then I can hand to Petros to give us a bit more color on the M&A synergy point. First of all, with regards to AI, I mean, I think if you recall our first quarter call, we talked extensively then about the opportunity and the fact that we were already operational within that new subsector. You know, we may not, as you rightly say, have taken a similar PR-type approach, but we see it as being a good opportunity for us. Let's remind ourselves that we're pretty much the exclusive partner of five of the six Magnificent Seven that outsource today. Thank you, Jaafar. thank you jaafar Let me take those in reverse order, and then I can hand to Petros to give us a bit more color on the M&A synergy point. let me take those in reverse order and then i can hand to petros to give us a bit more color on the m&a synergy point First of all, with regards to AI, I mean, I think if you recall our first quarter call, we talked extensively then about the opportunity and the fact that we were already operational within that new subsector. first of all with regards to ai i mean i think if you recall our first quarter call we talked extensively then about the opportunity and the fact that we were already operational within that new subsector You know, we may not, as you rightly say, have taken a similar PR-type approach, but we see it as being a good opportunity for us. you know we may not as you rightly say have taken a similar pr-type approach but we see it as being a good opportunity for us Let's remind ourselves that we're pretty much the exclusive partner of five of the six Magnificent Seven that outsource today. let's remind ourselves that we're pretty much the exclusive partner of five of the six magnificent seven that outsource today We, we have a super relationship with them from which to build into that opportunity. It's something that's happening with a number of them, both in North America and in the international region. We, we've developed a bespoke offer to provide services into that space. As we talked about, there's some onsite restaurants, but it's also about the micro market offer, the cleaning and other soft services that we can provide into those facilities. That's something we can bundle together. We're very excited by that. It is, as you heard us say today in the presentation, it is a one strand of the opportunity that exists within the AI ecosystem alongside manufacturing facilities alongside some of the new startups that are emerging at scale and at pace. We, we have a super relationship with them from which to build into that opportunity. we we have a super relationship with them from which to build into that opportunity It's something that's happening with a number of them, both in North America and in the international region. it's something that's happening with a number of them both in north america and in the international region We, we've developed a bespoke offer to provide services into that space. we we've developed a bespoke offer to provide services into that space As we talked about, there's some onsite restaurants, but it's also about the micro market offer, the cleaning and other soft services that we can provide into those facilities. as we talked about there's some onsite restaurants but it's also about the micro market offer the cleaning and other soft services that we can provide into those facilities That's something we can bundle together. that's something we can bundle together We're very excited by that. we're very excited by that It is, as you heard us say today in the presentation, it is a one strand of the opportunity that exists within the AI ecosystem alongside manufacturing facilities alongside some of the new startups that are emerging at scale and at pace. it is as you heard us say today in the presentation it is a one strand of the opportunity that exists within the ai ecosystem alongside manufacturing facilities alongside some of the new startups that are emerging at scale and at pace We feel pretty exciting and believe that the AI in the round, and data and technology will remain an exciting opportunity for us and a net growth contributor over time as we go forward. In terms of healthcare, you're right in the short term, the growth is slightly below where we believe it will be over time, and it's slightly below our average. With that true of North America. What we do believe, though, is that there remains a very significant opportunity. We know there are a number of accounts that are in discussion and are off scale. We feel pretty exciting and believe that the AI in the round, and data and technology will remain an exciting opportunity for us and a net growth contributor over time as we go forward. we feel pretty exciting and believe that the ai in the round and data and technology will remain an exciting opportunity for us and a net growth contributor over time as we go forward In terms of healthcare, you're right in the short term, the growth is slightly below where we believe it will be over time, and it's slightly below our average. in terms of healthcare you're right in the short term the growth is slightly below where we believe it will be over time and it's slightly below our average With that true of North America. with that true of north america What we do believe, though, is that there remains a very significant opportunity. what we do believe though is that there remains a very significant opportunity We know there are a number of accounts that are in discussion and are off scale. we know there are a number of accounts that are in discussion and are off scale We see the cost pressures which are applying to the sector, and we also obviously all know the opportunities that exist around an aging population that's going to need more care and more clinical attention as we go forward. We do believe across all subsectors of healthcare, whether that's daycare, whether that is the senior living facilities, there's an exciting opportunity, and we continue to work very hard on our offer for that. I think you'll see that starting to benefit our overall growth as we go forward. Finally, I will hand this over to Petros. Just a little thought, you called out acquisition synergies. Maybe if I could just elevate that sort of to our overall margin performance. We see the cost pressures which are applying to the sector, and we also obviously all know the opportunities that exist around an aging population that's going to need more care and more clinical attention as we go forward. we see the cost pressures which are applying to the sector and we also obviously all know the opportunities that exist around an aging population that's going to need more care and more clinical attention as we go forward We do believe across all subsectors of healthcare, whether that's daycare, whether that is the senior living facilities, there's an exciting opportunity, and we continue to work very hard on our offer for that. we do believe across all subsectors of healthcare whether that's daycare whether that is the senior living facilities there's an exciting opportunity and we continue to work very hard on our offer for that I think you'll see that starting to benefit our overall growth as we go forward. i think you'll see that starting to benefit our overall growth as we go forward Finally, I will hand this over to Petros. finally i will hand this over to petros Just a little thought, you called out acquisition synergies. just a little thought you called out acquisition synergies Maybe if I could just elevate that sort of to our overall margin performance. maybe if i could just elevate that sort of to our overall margin performance We're super excited today with the 20 basis points of margin progression that we've made. There's really three levers within that. One is overhead leverage as we continue to grow and we maintain cost discipline. The second is the contribution of purchasing through our GPO footprint. The third is the M&A synergies. I think what you see now is we've really dialed through the post-COVID era. We've dealt with the higher cost inflation of the sort of Ukraine crisis as it were. I think what we believe now is there's no reason why we shouldn't be able to see consistent margin growth year-over-year from here, principally because of those three levers. We're super excited today with the 20 basis points of margin progression that we've made. we're super excited today with the 20 basis points of margin progression that we've made There's really three levers within that. there's really three levers within that One is overhead leverage as we continue to grow and we maintain cost discipline. one is overhead leverage as we continue to grow and we maintain cost discipline The second is the contribution of purchasing through our GPO footprint. the second is the contribution of purchasing through our gpo footprint The third is the M&A synergies. the third is the m&a synergies I think what you see now is we've really dialed through the post-COVID era. i think what you see now is we've really dialed through the post-covid era We've dealt with the higher cost inflation of the sort of Ukraine crisis as it were. we've dealt with the higher cost inflation of the sort of ukraine crisis as it were I think what we believe now is there's no reason why we shouldn't be able to see consistent margin growth year-over-year from here, principally because of those three levers. i think what we believe now is there's no reason why we shouldn't be able to see consistent margin growth year-over-year from here principally because of those three levers We think we have it built into our business model. We're confident that we'll see consistent margin accretion year-over-year, which is really exciting. Actually feels like I talked earlier about, you know, a delta in our business model being the improvements in the international performance to be on a par with North America. I think if you have a level of confidence in ongoing margin expansion, that too is another pivot for us in our performance as we go forward. We think we have it built into our business model. we think we have it built into our business model We're confident that we'll see consistent margin accretion year-over-year, which is really exciting. we're confident that we'll see consistent margin accretion year-over-year which is really exciting Actually feels like I talked earlier about, you know, a delta in our business model being the improvements in the international performance to be on a par with North America. actually feels like i talked earlier about you know a delta in our business model being the improvements in the international performance to be on a par with north america I think if you have a level of confidence in ongoing margin expansion, that too is another pivot for us in our performance as we go forward. i think if you have a level of confidence in ongoing margin expansion that too is another pivot for us in our performance as we go forward

Speaker 11: I'll just add one comment on healthcare. If you're looking at international business, we're growing about 10% in healthcare, which is primarily driven by first-time outsourcing. If you take this in the context of North America first-time outsourcing opportunity, which is about 60%, this where we're really focusing on unlocking these opportunities that we have ahead of us. On the margin expansion, I think Dominic covered the levers. Maybe a couple of points to add here. We're truly witnessing now an area where we have margin expansion across the three levers we can drive within our business. Half of our margin progress is core margin expansion, which is leveraging our purchasing, investing in data and tech. We have been investing for quite some time now, and it's an integral part of our business. I'll just add one comment on healthcare. i'll just add one comment on healthcare If you're looking at international business, we're growing about 10% in healthcare, which is primarily driven by first-time outsourcing. if you're looking at international business we're growing about 10% in healthcare which is primarily driven by first-time outsourcing If you take this in the context of North America first-time outsourcing opportunity, which is about 60%, this where we're really focusing on unlocking these opportunities that we have ahead of us. if you take this in the context of north america first-time outsourcing opportunity which is about 60% this where we're really focusing on unlocking these opportunities that we have ahead of us On the margin expansion, I think Dominic covered the levers. on the margin expansion i think dominic covered the levers Maybe a couple of points to add here. maybe a couple of points to add here We're truly witnessing now an area where we have margin expansion across the three levers we can drive within our business. we're truly witnessing now an area where we have margin expansion across the three levers we can drive within our business Half of our margin progress is core margin expansion, which is leveraging our purchasing, investing in data and tech. half of our margin progress is core margin expansion which is leveraging our purchasing investing in data and tech We have been investing for quite some time now, and it's an integral part of our business. we have been investing for quite some time now and it's an integral part of our business I just want to remind everyone, we're investing around $300 million on tech every year. We have about 1,500 of technologies within our North America organization that gives us the confidence to keep improving our processes and how we monetize these investments. Then when you go to the other two levers, a quarter of the other half is the M&A expansion. As you rightly said, very much it's not that these numbers were annualizing acquisitions from last year and actually two years ago, that they keep giving some really good performance. The other quarter is overhead leverage, where we're truly convinced with the investments we have made, we can do more with same. This is where you see the overhead leverage playing to full extent. I just want to remind everyone, we're investing around $300 million on tech every year. i just want to remind everyone we're investing around $300 million on tech every year We have about 1,500 of technologies within our North America organization that gives us the confidence to keep improving our processes and how we monetize these investments. we have about 1,500 of technologies within our north america organization that gives us the confidence to keep improving our processes and how we monetize these investments Then when you go to the other two levers, a quarter of the other half is the M&A expansion. then when you go to the other two levers a quarter of the other half is the m&a expansion As you rightly said, very much it's not that these numbers were annualizing acquisitions from last year and actually two years ago, that they keep giving some really good performance. as you rightly said very much it's not that these numbers were annualizing acquisitions from last year and actually two years ago that they keep giving some really good performance The other quarter is overhead leverage, where we're truly convinced with the investments we have made, we can do more with same. the other quarter is overhead leverage where we're truly convinced with the investments we have made we can do more with same This is where you see the overhead leverage playing to full extent. this is where you see the overhead leverage playing to full extent

Speaker 4: Thank you very much. Thank you very much. thank you very much

Speaker 10: Thank you. Our next question comes from Simon Lechipre of Jefferies. Your line is open. Please go ahead. Thank you. thank you Our next question comes from Simon Lechipre of Jefferies. our next question comes from simon lechipre of jefferies Your line is open. your line is open Please go ahead. please go ahead

Speaker 13: Yes, good morning. Thanks for taking my questions. A quick clarification on retention just for the second half and going forward. Are you confident to have retention back above 96%? Yes, good morning. yes good morning Thanks for taking my questions. thanks for taking my questions A quick clarification on retention just for the second half and going forward. a quick clarification on retention just for the second half and going forward Are you confident to have retention back above 96%? are you confident to have retention back above 96% Secondly, a bit of a short-term question on what sort of revenue do you expect from the World Cup in North America? Lastly, just clarifying that if you expect margin to improve in North America as well as in international region. Thank you. Secondly, a bit of a short-term question on what sort of revenue do you expect from the World Cup in North America? secondly a bit of a short-term question on what sort of revenue do you expect from the world cup in north america Lastly, just clarifying that if you expect margin to improve in North America as well as in international region. lastly just clarifying that if you expect margin to improve in north america as well as in international region Thank you. thank you

Speaker 1: Thank you, Simon, for those. Yeah, look, You know, we are confident as we can be of retention being above 96% as we go forward based on everything we see today. Look, we continue to put pressure on ourselves across the business to do even better. You know, we've seen with the deployment of AI within our retention processes that, you know, we can get to better outcomes on preempts. You know, we continue to deploy with rigor and discipline our site processes across the wider group. We continue to term out our contracts. I mean, we should be constantly putting pressure on ourselves to do even better on retention. Thank you, Simon, for those. thank you simon for those Yeah, look, You know, we are confident as we can be of retention being above 96% as we go forward based on everything we see today. yeah look you know we are confident as we can be of retention being above 96% as we go forward based on everything we see today Look, we continue to put pressure on ourselves across the business to do even better. look we continue to put pressure on ourselves across the business to do even better You know, we've seen with the deployment of AI within our retention processes that, you know, we can get to better outcomes on preempts. you know we've seen with the deployment of ai within our retention processes that you know we can get to better outcomes on preempts You know, we continue to deploy with rigor and discipline our site processes across the wider group. you know we continue to deploy with rigor and discipline our site processes across the wider group We continue to term out our contracts. we continue to term out our contracts I mean, we should be constantly putting pressure on ourselves to do even better on retention. i mean we should be constantly putting pressure on ourselves to do even better on retention In terms of the World Cup, just remind, I mean, we operate four or five of the stadiums today. We will see World Cup games in those facilities, but of course, they will replace other sporting events that would've happened around at that time. We're also operating some of the fan zones. So, you know, I think there'll be a small benefit, but it will only be small in the context of the scale of our North American numbers. Then in terms of North American margin, Petros? In terms of the World Cup, just remind, I mean, we operate four or five of the stadiums today. in terms of the world cup just remind i mean we operate four or five of the stadiums today We will see World Cup games in those facilities, but of course, they will replace other sporting events that would've happened around at that time. we will see world cup games in those facilities but of course they will replace other sporting events that would've happened around at that time We're also operating some of the fan zones. we're also operating some of the fan zones So, you know, I think there'll be a small benefit, but it will only be small in the context of the scale of our North American numbers. so you know i think there'll be a small benefit but it will only be small in the context of the scale of our north american numbers Then in terms of North American margin, Petros? then in terms of north american margin petros

Speaker 11: Yeah, Simon. We continue to expect margin progress in the second half, both from North American International, making progress versus the first half and versus last year. It's gonna be perhaps a little, you know, touch softer than the first half, given the large mobilizations we have in the second half. Definitely we're seeing some really positive trends on the margin expansion. Yeah, Simon. yeah simon We continue to expect margin progress in the second half, both from North American International, making progress versus the first half and versus last year. we continue to expect margin progress in the second half both from north american international making progress versus the first half and versus last year It's gonna be perhaps a little, you know, touch softer than the first half, given the large mobilizations we have in the second half. it's gonna be perhaps a little you know touch softer than the first half given the large mobilizations we have in the second half Definitely we're seeing some really positive trends on the margin expansion. definitely we're seeing some really positive trends on the margin expansion

Speaker 13: Thank you. Thank you. thank you

Speaker 10: Thank you. Our next question comes from Estelle Weingrod of JPMorgan. You may insert and please go ahead. Thank you. thank you Our next question comes from Estelle Weingrod of JPMorgan. our next question comes from estelle weingrod of jpmorgan You may insert and please go ahead. you may insert and please go ahead

Speaker 2: Hi. Good morning. Thanks for taking my question. The first one, again, on retention, since Q2 was a touch softer, anything you would flag in terms of competitive intensity in the U.S. and outside U.S.? Is the environment still relatively rational overall? The second question, on the acceleration of net new in H2, how should we think of it on a quarterly basis, i.e. Q3 versus Q4? Thank you. Hi. hi Good morning. good morning Thanks for taking my question. thanks for taking my question The first one, again, on retention, since Q2 was a touch softer, anything you would flag in terms of competitive intensity in the U.S. and outside U.S.? the first one again on retention since q2 was a touch softer anything you would flag in terms of competitive intensity in the u.s and outside u.s Is the environment still relatively rational overall? is the environment still relatively rational overall The second question, on the acceleration of net new in H2, how should we think of it on a quarterly basis, i.e. the second question on the acceleration of net new in h2 how should we think of it on a quarterly basis i.e Q3 versus Q4? q3 versus q4 Thank you. thank you

Speaker 1: Thank you, Estelle. I mean, first of all, I would urge you and others not to overthink quarterly trends. You know, we're very focused on LTM. We're very focused on the full-year performance. In these numbers at this scale and the size of our some of our contracts as they run on and off, you're always gonna see distortions. Look, I'll let Petros pick up specifically on those two questions. You know, the one other point which I think is really worth making when it comes to new business, we haven't made is 85% of our new business is coming from first-time outsourcing and from local, from winning local players. Thank you, Estelle . thank you estelle I mean, first of all, I would urge you and others not to overthink quarterly trends. i mean first of all i would urge you and others not to overthink quarterly trends You know, we're very focused on LTM. you know we're very focused on ltm We're very focused on the full-year performance. we're very focused on the full-year performance In these numbers at this scale and the size of our some of our contracts as they run on and off, you're always gonna see distortions. in these numbers at this scale and the size of our some of our contracts as they run on and off you're always gonna see distortions Look, I'll let Petros pick up specifically on those two questions. look i'll let petros pick up specifically on those two questions You know, the one other point which I think is really worth making when it comes to new business, we haven't made is 85% of our new business is coming from first-time outsourcing and from local, from winning local players. you know the one other point which i think is really worth making when it comes to new business we haven't made is 85% of our new business is coming from first-time outsourcing and from local from winning local players You know, I think a narrative around greater competitiveness is sort of not really borne out by the data. Only 15% of our growth is coming from, I guess, share wins from the larger global players. Also if you look back over possibly the last 10 years, we've always been the net winner of share in that particular space in terms of against the largest international players. You know, I think a narrative around greater competitiveness is sort of not really borne out by the data. you know i think a narrative around greater competitiveness is sort of not really borne out by the data Only 15% of our growth is coming from, I guess, share wins from the larger global players. only 15% of our growth is coming from i guess share wins from the larger global players Also if you look back over possibly the last 10 years, we've always been the net winner of share in that particular space in terms of against the largest international players. also if you look back over possibly the last 10 years we've always been the net winner of share in that particular space in terms of against the largest international players You know, look, I know looking backwards doesn't necessarily predict how we go forwards, but, you know, as you've heard us say today, we do truly believe that the model that we've built with the client localization at the front end and the benefits of total national scale and also the GPO model means that we should truly be best placed to continue to win at these levels. Petros? You know, look, I know looking backwards doesn't necessarily predict how we go forwards, but, you know, as you've heard us say today, we do truly believe that the model that we've built with the client localization at the front end and the benefits of total national scale and also the GPO model means that we should truly be best placed to continue to win at these levels. you know look i know looking backwards doesn't necessarily predict how we go forwards but you know as you've heard us say today we do truly believe that the model that we've built with the client localization at the front end and the benefits of total national scale and also the gpo model means that we should truly be best placed to continue to win at these levels Petros? petros

Speaker 11: Maybe a couple of points to understand. I think on retention, if you truly look in the last four years, we have been consistently at 96% and above. There is none specifically to call out. I think Dominic touched on this. We do expect in the second half to net new to accelerate towards the middle, the middle of our range, so 4%-5%. If you look at our gross new signings, GBP 4.1 billion, and the line of sight we have on mobilizing the second half, we feel confident we're going to be the fifth year, the fifth consecutive year of delivering net new 4%-5% and being in the middle of this range for the second half. Maybe a couple of points to understand. maybe a couple of points to understand I think on retention, if you truly look in the last four years, we have been consistently at 96% and above. i think on retention if you truly look in the last four years we have been consistently at 96% and above There is none specifically to call out. there is none specifically to call out I think Dominic touched on this. i think dominic touched on this We do expect in the second half to net new to accelerate towards the middle, the middle of our range, so 4%-5%. we do expect in the second half to net new to accelerate towards the middle the middle of our range so 4%-5% If you look at our gross new signings, GBP 4.1 billion, and the line of sight we have on mobilizing the second half, we feel confident we're going to be the fifth year, the fifth consecutive year of delivering net new 4%-5% and being in the middle of this range for the second half. if you look at our gross new signings gbp 4.1 billion and the line of sight we have on mobilizing the second half we feel confident we're going to be the fifth year the fifth consecutive year of delivering net new 4%-5% and being in the middle of this range for the second half

Speaker 2: Okay. Thank you. Okay. okay Thank you. thank you

Speaker 10: Thank you. Our next question comes from Neil Tyler of Rothschild. You are unmuted. Please go ahead. Thank you. thank you Our next question comes from Neil Tyler of Rothschild. our next question comes from neil tyler of rothschild You are unmuted. you are unmuted Please go ahead. please go ahead

Speaker 9: Hey, good morning. Thank you. One further follow-up from me. Dominic, the GBP 600 billion you mentioned as the sort of long-term market opportunity includes you adding further capabilities. I wonder if you could perhaps sort of you know share what those what you anticipate you need to add to the portfolio to be able to address the entirety of that market and whether that would be more likely done organically or you need to look elsewhere for those. Thank you. Hey, good morning. hey good morning Thank you. thank you One further follow-up from me. one further follow-up from me Dominic , the GBP 600 billion you mentioned as the sort of long-term market opportunity includes you adding further capabilities. dominic the gbp 600 billion you mentioned as the sort of long-term market opportunity includes you adding further capabilities I wonder if you could perhaps sort of you know share what those what you anticipate you need to add to the portfolio to be able to address the entirety of that market and whether that would be more likely done organically or you need to look elsewhere for those. i wonder if you could perhaps sort of you know share what those what you anticipate you need to add to the portfolio to be able to address the entirety of that market and whether that would be more likely done organically or you need to look elsewhere for those Thank you. thank you

Speaker 1: Yeah. Thank you, Neil. This is a really important question. If you look at the market that we competed in 2015, it was valued at around $220 billion. Today, that integrates, so that's $360 billion. It's been growing at a CAGR of 5% ahead of GDP. Now, that is due to a number of factors. First of all, it's the growth of our client base within that. Separately, it's been the inclusion of other opportunities as we've seen them going forward. When you look at that $600 billion, it's a continuation of some of those trends, but also, you know, as we've adapted our operating model, it does give us access to other channels which are growing faster still. Yeah. yeah Thank you, Neil. thank you neil This is a really important question. this is a really important question If you look at the market that we competed in 2015, it was valued at around $220 billion. if you look at the market that we competed in 2015 it was valued at around $220 billion Today, that integrates, so that's $360 billion. today that integrates so that's $360 billion It's been growing at a CAGR of 5% ahead of GDP. it's been growing at a cagr of 5% ahead of gdp Now, that is due to a number of factors. now that is due to a number of factors First of all, it's the growth of our client base within that. first of all it's the growth of our client base within that Separately, it's been the inclusion of other opportunities as we've seen them going forward. separately it's been the inclusion of other opportunities as we've seen them going forward When you look at that $600 billion, it's a continuation of some of those trends, but also, you know, as we've adapted our operating model, it does give us access to other channels which are growing faster still. when you look at that $600 billion it's a continuation of some of those trends but also you know as we've adapted our operating model it does give us access to other channels which are growing faster still Including in that, we've now got the opportunities we discussed today to address sports and leisure internationally, which wouldn't previously have been included. It would only have been within the markets in which we have previously operated. Secondly, it's where we see the expansion within the AI ecosystem. We've got the opportunity in micro markets internationally, which we haven't previously mobilized and organized around, and we do now have the capabilities for that. It's the inclusion of the defense sector in North America, where, as you've heard us say today, we've begun to take share and we're starting to win first-time outsourcing contracts as we scale our endeavors there. I think it's a combination of positive tailwinds within those core sectors. Some of those we've talked about, like aging populations in the countries in which we operate. Including in that, we've now got the opportunities we discussed today to address sports and leisure internationally, which wouldn't previously have been included. including in that we've now got the opportunities we discussed today to address sports and leisure internationally which wouldn't previously have been included It would only have been within the markets in which we have previously operated. it would only have been within the markets in which we have previously operated Secondly, it's where we see the expansion within the AI ecosystem. secondly it's where we see the expansion within the ai ecosystem We've got the opportunity in micro markets internationally, which we haven't previously mobilized and organized around, and we do now have the capabilities for that. we've got the opportunity in micro markets internationally which we haven't previously mobilized and organized around and we do now have the capabilities for that It's the inclusion of the defense sector in North America, where, as you've heard us say today, we've begun to take share and we're starting to win first-time outsourcing contracts as we scale our endeavors there. it's the inclusion of the defense sector in north america where as you've heard us say today we've begun to take share and we're starting to win first-time outsourcing contracts as we scale our endeavors there I think it's a combination of positive tailwinds within those core sectors. i think it's a combination of positive tailwinds within those core sectors Some of those we've talked about, like aging populations in the countries in which we operate. some of those we've talked about like aging populations in the countries in which we operate Separately, it's our ability to open up new subsectors which expand the TAM for us ahead of those growth rates. That's what feels really exciting. You've seen us do it with the M&A that we've prosecuted. Some of it will be by M&A, some of it will be by organic build, and some of it will be by transferring the capabilities we've already built within existing mature markets into new sector opportunities in other countries. Separately, it's our ability to open up new subsectors which expand the TAM for us ahead of those growth rates. separately it's our ability to open up new subsectors which expand the tam for us ahead of those growth rates That's what feels really exciting. that's what feels really exciting You've seen us do it with the M&A that we've prosecuted. you've seen us do it with the m&a that we've prosecuted Some of it will be by M&A, some of it will be by organic build, and some of it will be by transferring the capabilities we've already built within existing mature markets into new sector opportunities in other countries. some of it will be by m&a some of it will be by organic build and some of it will be by transferring the capabilities we've already built within existing mature markets into new sector opportunities in other countries

Speaker 9: Okay, thank you very much. Very clear. Okay, thank you very much. okay thank you very much Very clear. very clear

Speaker 10: Thank you. Our next question comes from Pravin Gondhale of Barclays. Your line is open. Please go ahead. Thank you. thank you Our next question comes from Pravin Gondhale of Barclays. our next question comes from pravin gondhale of barclays Your line is open. your line is open Please go ahead. please go ahead

Speaker 12: Hello. Thanks for taking my questions. Two of them on M&A and data center opportunity here. Firstly, could you please talk about a bit more about Pro Care M&A? What level of procurement synergies and margin accretion you expect when this is fully consolidated? Secondly, on data center opportunity. One of your peers has launched a specialized offer recently. Could you please talk about your initiatives and the pipeline of new business in this new subsector? Thank you. Hello. hello Thanks for taking my questions. thanks for taking my questions Two of them on M&A and data center opportunity here. two of them on m&a and data center opportunity here Firstly, could you please talk about a bit more about Pro Care M&A? firstly could you please talk about a bit more about pro care m&a What level of procurement synergies and margin accretion you expect when this is fully consolidated? what level of procurement synergies and margin accretion you expect when this is fully consolidated Secondly, on data center opportunity. secondly on data center opportunity One of your peers has launched a specialized offer recently. one of your peers has launched a specialized offer recently Could you please talk about your initiatives and the pipeline of new business in this new subsector? could you please talk about your initiatives and the pipeline of new business in this new subsector Thank you. thank you

Speaker 1: Why don't I hand those to Petros? Why don't I hand those to Petros? why don't i hand those to petros

Speaker 11: Hello, Pravin. On the M&A, I guess you recall, the fundamental of our business is GPO and purchasing. We have now five markets running GPO organizations, including Germany, with the recent acquisition. It's a great established third-party GPO business in Germany. This will bring our managed spend nearly over GBP 1 billion, including our business there. It's giving us sufficient scale to put in our model and drive the flywheel that we're seeing in other markets. I would say the GPO, the way we've got GPO is more correlated to growth. We're getting more competitive on costs. We're investing back in the business. We're able to drive more gross new and retain and have better retention rates. We're very excited about the acquisition. Hello, Pravin. hello pravin On the M&A, I guess you recall, the fundamental of our business is GPO and purchasing. on the m&a i guess you recall the fundamental of our business is gpo and purchasing We have now five markets running GPO organizations, including Germany, with the recent acquisition. we have now five markets running gpo organizations including germany with the recent acquisition It's a great established third-party GPO business in Germany. it's a great established third-party gpo business in germany This will bring our managed spend nearly over GBP 1 billion, including our business there. this will bring our managed spend nearly over gbp 1 billion including our business there It's giving us sufficient scale to put in our model and drive the flywheel that we're seeing in other markets. it's giving us sufficient scale to put in our model and drive the flywheel that we're seeing in other markets I would say the GPO, the way we've got GPO is more correlated to growth. i would say the gpo the way we've got gpo is more correlated to growth We're getting more competitive on costs. we're getting more competitive on costs We're investing back in the business. we're investing back in the business We're able to drive more gross new and retain and have better retention rates. we're able to drive more gross new and retain and have better retention rates We're very excited about the acquisition. we're very excited about the acquisition As you know, we closed the acquisition last month. We would expect to see some improvement both on competitiveness when it comes to net new and margin expansion. On data centers, maybe the simple answer to this is we have been running data centers for some of our tech clients for quite some time now. In our offer, if you're looking at our tech clients, we have been growing with them in excess of 30% for the last three, four years. We do have an offer today, which is in place, it has grown at scale, which combines food and specialty support services as they're scaling up their data centers. You do see this in our growth rates in the tech, you do see this in our growth rates in the emerging economies within the AI ecosystem. As you know, we closed the acquisition last month. as you know we closed the acquisition last month We would expect to see some improvement both on competitiveness when it comes to net new and margin expansion. we would expect to see some improvement both on competitiveness when it comes to net new and margin expansion On data centers, maybe the simple answer to this is we have been running data centers for some of our tech clients for quite some time now. on data centers maybe the simple answer to this is we have been running data centers for some of our tech clients for quite some time now In our offer, if you're looking at our tech clients, we have been growing with them in excess of 30% for the last three, four years. in our offer if you're looking at our tech clients we have been growing with them in excess of 30% for the last three four years We do have an offer today, which is in place, it has grown at scale, which combines food and specialty support services as they're scaling up their data centers. we do have an offer today which is in place it has grown at scale which combines food and specialty support services as they're scaling up their data centers You do see this in our growth rates in the tech, you do see this in our growth rates in the emerging economies within the AI ecosystem. you do see this in our growth rates in the tech you do see this in our growth rates in the emerging economies within the ai ecosystem It's nothing new to us. We have been doing this, and we just plan to capitalize more as we go. It's nothing new to us. it's nothing new to us We have been doing this, and we just plan to capitalize more as we go. we have been doing this and we just plan to capitalize more as we go

Speaker 1: Yeah. Let me, if I might just add on the GPO point, because I think it's just a really important area of our business. You know, with the PCM acquisition in Germany, as Petros rightly said, we're now at $1 billion of spend in Germany. That's a very significant contributor to our competitiveness in Germany, where we see a great growth opportunity. As Petros also said, and just to reiterate the point, we've now got GPO capability in five of our top 10 markets. We're making this a strategic priority. The way we'll build this out is by establishing GPO capability in each of those countries so that we can provide those services to third parties and to Compass volume as a customer too. Yeah. yeah Let me, if I might just add on the GPO point, because I think it's just a really important area of our business. let me if i might just add on the gpo point because i think it's just a really important area of our business You know, with the PCM acquisition in Germany, as Petros rightly said, we're now at $1 billion of spend in Germany. you know with the pcm acquisition in germany as petros rightly said we're now at $1 billion of spend in germany That's a very significant contributor to our competitiveness in Germany, where we see a great growth opportunity. that's a very significant contributor to our competitiveness in germany where we see a great growth opportunity As Petros also said, and just to reiterate the point, we've now got GPO capability in five of our top 10 markets. as petros also said and just to reiterate the point we've now got gpo capability in five of our top 10 markets We're making this a strategic priority. we're making this a strategic priority The way we'll build this out is by establishing GPO capability in each of those countries so that we can provide those services to third parties and to Compass volume as a customer too. the way we'll build this out is by establishing gpo capability in each of those countries so that we can provide those services to third parties and to compass volume as a customer too We can do that either through market acquisition or through effectively exporting the offer that we've acquired here with PCM into new markets. We feel really good about some of the capability in terms of the leadership that we're bringing into the group, who are gonna help us really accelerate this opportunity. We feel that we've really got our arms around it now in a way that's gonna be additive as we go forward with confidence. We can do that either through market acquisition or through effectively exporting the offer that we've acquired here with PCM into new markets. we can do that either through market acquisition or through effectively exporting the offer that we've acquired here with pcm into new markets We feel really good about some of the capability in terms of the leadership that we're bringing into the group, who are gonna help us really accelerate this opportunity. we feel really good about some of the capability in terms of the leadership that we're bringing into the group who are gonna help us really accelerate this opportunity We feel that we've really got our arms around it now in a way that's gonna be additive as we go forward with confidence. we feel that we've really got our arms around it now in a way that's gonna be additive as we go forward with confidence

Speaker 12: Thank you. This is really helpful. Just a follow-up to the plus 36% tech revenue growth in last three years that you sort of indicated earlier. Could you just chat about what it has been in last 12 months? Thank you. Thank you. thank you This is really helpful. this is really helpful Just a follow-up to the plus 36% tech revenue growth in last three years that you sort of indicated earlier. just a follow-up to the plus 36% tech revenue growth in last three years that you sort of indicated earlier Could you just chat about what it has been in last 12 months? could you just chat about what it has been in last 12 months Thank you. thank you

Speaker 11: It has been in the double-digit growth rates. If you're talking about our tech clients, Pravin? Sorry, I don't get the question. Don't get the question. It has been in the double-digit growth rates. it has been in the double-digit growth rates If you're talking about our tech clients, Pravin? if you're talking about our tech clients pravin Sorry, I don't get the question. sorry i don't get the question Don't get the question. don't get the question

Speaker 12: Yeah. Yeah. yeah

Speaker 11: Okay. Okay. okay

Speaker 12: Yes, please. Tech clients. Yes, please. yes please Tech clients. tech clients

Speaker 11: Actually, if you look at our B&I performance overall, we have been growing at about 12% in North America. Our tech clients actually is ahead of this aggregated growth rates. That gives us confidence to keep growing within our existing clients. Actually, if you look at our B&I performance overall, we have been growing at about 12% in North America. actually if you look at our b&i performance overall we have been growing at about 12% in north america Our tech clients actually is ahead of this aggregated growth rates. our tech clients actually is ahead of this aggregated growth rates That gives us confidence to keep growing within our existing clients. that gives us confidence to keep growing within our existing clients

Speaker 12: Thank you. This is really helpful. Thanks. Thank you. thank you This is really helpful. this is really helpful Thanks. thanks

Speaker 10: Our next question comes from Kate Xiao of Bank of America. Your line is open. Please go ahead. Our next question comes from Kate Xiao of Bank of America. our next question comes from kate xiao of bank of america Your line is open. your line is open Please go ahead. please go ahead

Speaker 7: Thank you very much for taking my questions. I have three. First, can you comment on current trading in the first half of 3Q? Are you seeing, in terms of organic growth and especially net new, early signs of that acceleration already? Two, on volume, can you help us understand the second half trajectory of volume growth there? Obviously you did 0.7% in first half. Last year it was 1%. I guess in the second half of this year with the tailwind of FIFA World Cup, which I assume would be mostly in volume, should we think about volume in the second half more, you know, towards the 1%, you know, of that range? You know, can you help us understand the moving parts there? Thank you very much for taking my questions. thank you very much for taking my questions I have three. i have three First, can you comment on current trading in the first half of 3Q? first can you comment on current trading in the first half of 3q Are you seeing, in terms of organic growth and especially net new, early signs of that acceleration already? are you seeing in terms of organic growth and especially net new early signs of that acceleration already Two, on volume, can you help us understand the second half trajectory of volume growth there? two on volume can you help us understand the second half trajectory of volume growth there Obviously you did 0.7% in first half. obviously you did 0.7% in first half Last year it was 1%. last year it was 1% I guess in the second half of this year with the tailwind of FIFA World Cup, which I assume would be mostly in volume, should we think about volume in the second half more, you know, towards the 1%, you know, of that range? i guess in the second half of this year with the tailwind of fifa world cup which i assume would be mostly in volume should we think about volume in the second half more you know towards the 1% you know of that range You know, can you help us understand the moving parts there? you know can you help us understand the moving parts there Third question is a bit longer term. Obviously that 5% market CAGR that you guys have, you know, are thinking now into the long term. How should we think about your 6%-8% top line growth algo at the lower end of that range? We're looking at only 1 percentage point of outperformance over the market. Is that a bit too conservative? Because if I look at your North America, it has been 7%-8% consistently for a number of years. Is it a matter of conservatism because you're, we're at very early stage of, you know, inflection of the, of your international markets? Especially, you know, you talked about all the tailwind in a number of end markets. Third question is a bit longer term. third question is a bit longer term Obviously that 5% market CAGR that you guys have, you know, are thinking now into the long term. obviously that 5% market cagr that you guys have you know are thinking now into the long term How should we think about your 6%-8% top line growth algo at the lower end of that range? how should we think about your 6%-8% top line growth algo at the lower end of that range We're looking at only 1 percentage point of outperformance over the market. we're looking at only 1 percentage point of outperformance over the market Is that a bit too conservative? is that a bit too conservative Because if I look at your North America, it has been 7%-8% consistently for a number of years. because if i look at your north america it has been 7%-8% consistently for a number of years Is it a matter of conservatism because you're, we're at very early stage of, you know, inflection of the, of your international markets? is it a matter of conservatism because you're we're at very early stage of you know inflection of the of your international markets Especially, you know, you talked about all the tailwind in a number of end markets. especially you know you talked about all the tailwind in a number of end markets With all that tailwind should we be, you know, thinking about maybe upside to the 7%-8% range in the long term? Thank you. With all that tailwind should we be, you know, thinking about maybe upside to the 7%-8% range in the long term? with all that tailwind should we be you know thinking about maybe upside to the 7%-8% range in the long term Thank you. thank you

Speaker 1: Kate, thank you. You've gone from one month out to 10 years out in those questions. Thank you. I'll start with the long term. I mean, look, what's really important for us is that we've got a framework for investors that gives them insight into our levels of confidence of the long-term performance of this business. I think today we're the best business we've ever been. You know, I've been here 15 years now, and I look at this business and think there's a level of consistency and sustainability of it that we, you know, that is greater and better than we've ever previously enjoyed. Why is that? Because I truly believe we're in that 4%-5% range across both parts of our business and can consistently perform within that. Kate, thank you. kate thank you You've gone from one month out to 10 years out in those questions. you've gone from one month out to 10 years out in those questions Thank you. thank you I'll start with the long term. i'll start with the long term I mean, look, what's really important for us is that we've got a framework for investors that gives them insight into our levels of confidence of the long-term performance of this business. i mean look what's really important for us is that we've got a framework for investors that gives them insight into our levels of confidence of the long-term performance of this business I think today we're the best business we've ever been. i think today we're the best business we've ever been You know, I've been here 15 years now, and I look at this business and think there's a level of consistency and sustainability of it that we, you know, that is greater and better than we've ever previously enjoyed. you know i've been here 15 years now and i look at this business and think there's a level of consistency and sustainability of it that we you know that is greater and better than we've ever previously enjoyed Why is that? why is that Because I truly believe we're in that 4%-5% range across both parts of our business and can consistently perform within that. because i truly believe we're in that 4%-5% range across both parts of our business and can consistently perform within that Of course, we'll task ourselves with doing better still. The other element that drives our long-term growth algorithm is, of course, like for like. You know, we talked about having 0.5 percentage points of volume opportunity to 1 percentage point, and then the balance being made up of pricing of maybe 1.5 percentage points-2.5 percentage points. You know, there's always going to be fluctuations within that. You know, perhaps in the near term, we're gonna see more pricing if the inflation comes through as a result of the Middle East. Maybe that might come off over time. We certainly feel like we're in an era of higher levels of inflation and therefore pricing than we have been for the previous decade prior to COVID. Of course, we'll task ourselves with doing better still. of course we'll task ourselves with doing better still The other element that drives our long-term growth algorithm is, of course, like for like. the other element that drives our long-term growth algorithm is of course like for like You know, we talked about having 0.5 percentage points of volume opportunity to 1 percentage point, and then the balance being made up of pricing of maybe 1.5 percentage points-2.5 percentage points. you know we talked about having 0.5 percentage points of volume opportunity to 1 percentage point and then the balance being made up of pricing of maybe 1.5 percentage points-2.5 percentage points You know, there's always going to be fluctuations within that. you know there's always going to be fluctuations within that You know, perhaps in the near term, we're gonna see more pricing if the inflation comes through as a result of the Middle East. you know perhaps in the near term we're gonna see more pricing if the inflation comes through as a result of the middle east Maybe that might come off over time. maybe that might come off over time We certainly feel like we're in an era of higher levels of inflation and therefore pricing than we have been for the previous decade prior to COVID. we certainly feel like we're in an era of higher levels of inflation and therefore pricing than we have been for the previous decade prior to covid On the balance of that, I'd like to think that over time we'll be at the higher end of each of those ranges for, you know, market factors as well as self-help. You know, I won't make the comparison to, you know, you talk about sort of the rest of the industry as it were. I think what's different for us is that, you know, we're seeking consistency. We've delivered consistently now for five years. We haven't demonstrated volatility in our performance. That's what's really important for us, is that we have that level of consistency. What comes with that consistency on the top line is also the ability to consistently deliver the margin that we talked about. That's where, you know, the two really come together. On the balance of that, I'd like to think that over time we'll be at the higher end of each of those ranges for, you know, market factors as well as self-help. on the balance of that i'd like to think that over time we'll be at the higher end of each of those ranges for you know market factors as well as self-help You know, I won't make the comparison to, you know, you talk about sort of the rest of the industry as it were. you know i won't make the comparison to you know you talk about sort of the rest of the industry as it were I think what's different for us is that, you know, we're seeking consistency. i think what's different for us is that you know we're seeking consistency We've delivered consistently now for five years. we've delivered consistently now for five years We haven't demonstrated volatility in our performance. we haven't demonstrated volatility in our performance That's what's really important for us, is that we have that level of consistency. that's what's really important for us is that we have that level of consistency What comes with that consistency on the top line is also the ability to consistently deliver the margin that we talked about. what comes with that consistency on the top line is also the ability to consistently deliver the margin that we talked about That's where, you know, the two really come together. that's where you know the two really come together You know, if we can be in that sort of mid- to high-single-digit revenue growth range consistently and be contributing, you know, 10 basis points-20 basis points of margin, then, you know, at that level we're into high-single-digits to low-double-digit profit growth, right? That's the beauty of what we're trying to build here, and we believe we can put in place consistently. Therefore when it comes to your, you know, your more near-term questions, I mean, you know, now look, we're only one month into current trading in the third quarter, so we're not gonna comment on that if you don't mind. Everything we are seeing would support all of the comments that we've made on the call today. More importantly, this is a long-term contract business, right? You know, if we can be in that sort of mid- to high-single-digit revenue growth range consistently and be contributing, you know, 10 basis points- 20 basis points of margin, then, you know, at that level we're into high-single-digits to low-double-digit profit growth, right? you know if we can be in that sort of mid- to high-single-digit revenue growth range consistently and be contributing you know 10 basis points- 20 basis points of margin then you know at that level we're into high-single-digits to low-double-digit profit growth right That's the beauty of what we're trying to build here, and we believe we can put in place consistently. that's the beauty of what we're trying to build here and we believe we can put in place consistently Therefore when it comes to your, you know, your more near-term questions, I mean, you know, now look, we're only one month into current trading in the third quarter, so we're not gonna comment on that if you don't mind. therefore when it comes to your you know your more near-term questions i mean you know now look we're only one month into current trading in the third quarter so we're not gonna comment on that if you don't mind Everything we are seeing would support all of the comments that we've made on the call today. everything we are seeing would support all of the comments that we've made on the call today More importantly, this is a long-term contract business, right? more importantly this is a long-term contract business right You know, when it comes to retention, you know, there's little that would impact us in the balance of this year that will run through the ITY years ago numbers. Therefore, we have a level of confidence around everything we're saying on retention. You know, likewise, we know pretty much when contracts are going to open and mobilize in the quarters that are ahead of us. There's a level of certainty in the near term that we've conveyed today in the call with you. Then, Petros, do you wanna just pick up on the volume? You know, when it comes to retention, you know, there's little that would impact us in the balance of this year that will run through the ITY years ago numbers. you know when it comes to retention you know there's little that would impact us in the balance of this year that will run through the ity years ago numbers Therefore, we have a level of confidence around everything we're saying on retention. therefore we have a level of confidence around everything we're saying on retention You know, likewise, we know pretty much when contracts are going to open and mobilize in the quarters that are ahead of us. you know likewise we know pretty much when contracts are going to open and mobilize in the quarters that are ahead of us There's a level of certainty in the near term that we've conveyed today in the call with you. there's a level of certainty in the near term that we've conveyed today in the call with you Then, Petros, do you wanna just pick up on the volume? then petros do you wanna just pick up on the volume

Speaker 11: I think you covered pretty much though. Maybe the only point I'm going to make here is if you take this long-term view of volumes being flat, call it for a decade before COVID, and where we're now in a normalized world, where we're contributing anywhere between 50 basis points-100 basis points, which practically, if you see what has happened for the last five years, inflation has gone up. We do see more participation in our restaurants when it's compared to street pricing. We see this across the sectors. The second thing we're seeing is more of a tiered offer, specifically in sports and leisure. Five years ago, we used to have a concessions and a VIP offer. Today, we have eight tiered offers within sports and leisure. I think you covered pretty much though. i think you covered pretty much though Maybe the only point I'm going to make here is if you take this long-term view of volumes being flat, call it for a decade before COVID, and where we're now in a normalized world, where we're contributing anywhere between 50 basis points- 100 basis points, which practically, if you see what has happened for the last five years, inflation has gone up. maybe the only point i'm going to make here is if you take this long-term view of volumes being flat call it for a decade before covid and where we're now in a normalized world where we're contributing anywhere between 50 basis points- 100 basis points which practically if you see what has happened for the last five years inflation has gone up We do see more participation in our restaurants when it's compared to street pricing. we do see more participation in our restaurants when it's compared to street pricing We see this across the sectors. we see this across the sectors The second thing we're seeing is more of a tiered offer, specifically in sports and leisure. the second thing we're seeing is more of a tiered offer specifically in sports and leisure Five years ago, we used to have a concessions and a VIP offer. five years ago we used to have a concessions and a vip offer Today, we have eight tiered offers within sports and leisure. today we have eight tiered offers within sports and leisure This speaks a lot about the quality of the experience and the willingness of our clients to keep innovating with us. The third thing I'm going to say, we have invested a lot in technology when it comes to how we serve our clients. Things like, you know, queue time reduction, when we're using kiosks, pre-order, grab-and-go concepts, our unattended and vending businesses. All of this supports more throughput and more spend within our restaurants, and this is what you see more structurally coming to our volumes. This speaks a lot about the quality of the experience and the willingness of our clients to keep innovating with us. this speaks a lot about the quality of the experience and the willingness of our clients to keep innovating with us The third thing I'm going to say, we have invested a lot in technology when it comes to how we serve our clients. the third thing i'm going to say we have invested a lot in technology when it comes to how we serve our clients Things like, you know, queue time reduction, when we're using kiosks, pre-order, grab-and-go concepts, our unattended and vending businesses. things like you know queue time reduction when we're using kiosks pre-order grab-and-go concepts our unattended and vending businesses All of this supports more throughput and more spend within our restaurants, and this is what you see more structurally coming to our volumes. all of this supports more throughput and more spend within our restaurants and this is what you see more structurally coming to our volumes

Speaker 7: Thank you. Thank you. thank you

Speaker 10: We'll now take our next question from Karl Green of RBC. Your line is open. Please go ahead. We'll now take our next question from Karl Green of RBC. we'll now take our next question from karl green of rbc Your line is open. your line is open Please go ahead. please go ahead

Speaker 6: Thanks very much. Just two remaining questions from me. Just going back to the comment you made about first time outsourcing in business and industry. It referenced, for example, new headquarters. One would assume that some of those new premises and new headquarters would be with existing clients or indeed clients that might have outsourced to other people before. I just wondered if you could indicate what percent of organic growth it comes from first time outsourcing with new clients who have never outsourced to you or others previously. It's a subtle definition, it kind of feels like there's some first time outsourcing in there that is facility rather than client related. The 2nd question, just back to Jamie's question at the top of the Q&A. Thanks very much. thanks very much Just two remaining questions from me. just two remaining questions from me Just going back to the comment you made about first time outsourcing in business and industry. just going back to the comment you made about first time outsourcing in business and industry It referenced, for example, new headquarters. it referenced for example new headquarters One would assume that some of those new premises and new headquarters would be with existing clients or indeed clients that might have outsourced to other people before. one would assume that some of those new premises and new headquarters would be with existing clients or indeed clients that might have outsourced to other people before I just wondered if you could indicate what percent of organic growth it comes from first time outsourcing with new clients who have never outsourced to you or others previously. i just wondered if you could indicate what percent of organic growth it comes from first time outsourcing with new clients who have never outsourced to you or others previously It's a subtle definition, it kind of feels like there's some first time outsourcing in there that is facility rather than client related. it's a subtle definition it kind of feels like there's some first time outsourcing in there that is facility rather than client related The 2nd question, just back to Jamie's question at the top of the Q&A. the 2nd question just back to jamie's question at the top of the q&a I didn't quite get the answer as to the explanation for why the new business mobilization had been impacted by the weather compared to the like-for-like volumes. If you could just remind me of the answer to that, please. I didn't quite get the answer as to the explanation for why the new business mobilization had been impacted by the weather compared to the like-for-like volumes. i didn't quite get the answer as to the explanation for why the new business mobilization had been impacted by the weather compared to the like-for-like volumes If you could just remind me of the answer to that, please. if you could just remind me of the answer to that please

Speaker 11: Yeah. Let me start with your second question, and then I will go to your first question. During if you go mid-February to through March, there have been quite a lot of extreme weather events in four states in the United States and southern states as well. You have snow storms, you have different, you know, events, which practically delayed us mobilizing new client accounts, new businesses. This is what you see in the, in the net new, the gross new. You heard us talking earlier, we know this will accelerate in the second half of this year. Yeah. yeah Let me start with your second question, and then I will go to your first question. let me start with your second question and then i will go to your first question During if you go mid-February to through March, there have been quite a lot of extreme weather events in four states in the United States and southern states as well. during if you go mid-february to through march there have been quite a lot of extreme weather events in four states in the united states and southern states as well You have snow storms, you have different, you know, events, which practically delayed us mobilizing new client accounts, new businesses. you have snow storms you have different you know events which practically delayed us mobilizing new client accounts new businesses This is what you see in the, in the net new, the gross new. this is what you see in the in the net new the gross new You heard us talking earlier, we know this will accelerate in the second half of this year. you heard us talking earlier we know this will accelerate in the second half of this year When it comes to your first question on the first time outsourcing, actually, we see about 2/3 of being, you know, new investment, new business from our clients, and then about 1/3 of on share gains. Nonetheless, it has been a very consistent trend for call it maybe four or five years now, we're capitalizing on this trend. There is a really good contribution from both sources of growth in this sector. When it comes to your first question on the first time outsourcing, actually, we see about 2/3 of being, you know, new investment, new business from our clients, and then about 1/3 of on share gains. when it comes to your first question on the first time outsourcing actually we see about 2/3 of being you know new investment new business from our clients and then about 1/3 of on share gains Nonetheless, it has been a very consistent trend for call it maybe four or five years now, we're capitalizing on this trend. nonetheless it has been a very consistent trend for call it maybe four or five years now we're capitalizing on this trend There is a really good contribution from both sources of growth in this sector. there is a really good contribution from both sources of growth in this sector

Speaker 1: Yeah. Sorry, just to add to that point, Karl. You know, you know, look, the volumes look broadly flat, sort of Q1 and Q2. We suspect it could have been a touch stronger if they hadn't been impacted by the weather. Also actually what we tend to find, particularly when it's sort of rain and snow, there's a pickup in support services for the cleanup operations afterwards, which has always been a sort of net, a net hedge for us in those circumstances. Yeah. yeah Sorry, just to add to that point, Karl. sorry just to add to that point karl You know, you know, look, the volumes look broadly flat, sort of Q1 and Q2. you know you know look the volumes look broadly flat sort of q1 and q2 We suspect it could have been a touch stronger if they hadn't been impacted by the weather. we suspect it could have been a touch stronger if they hadn't been impacted by the weather Also actually what we tend to find, particularly when it's sort of rain and snow, there's a pickup in support services for the cleanup operations afterwards, which has always been a sort of net, a net hedge for us in those circumstances. also actually what we tend to find particularly when it's sort of rain and snow there's a pickup in support services for the cleanup operations afterwards which has always been a sort of net a net hedge for us in those circumstances

Speaker 6: Very helpful. Thank you very much. Very helpful. very helpful Thank you very much. thank you very much

Speaker 10: Thank you. We'll now take the last question from Ivar Billfalk-Kelly of UBS. Your line is open. Please go ahead. Thank you. thank you We'll now take the last question from Ivar Billfalk-Kelly of UBS. we'll now take the last question from ivar billfalk-kelly of ubs Your line is open. your line is open Please go ahead. please go ahead

Speaker 3: Morning, everyone. Sorry if I'm going over new ground here. I missed a portion of the call. I wanna touch on the GPOs again, given you mentioned the contribution to margins and the importance of them. Since you only have the GPO in five of the top 10 countries, I mean, what do you actually need to put in place in the remaining 5 countries such that you'll be able to expand the model to those remaining countries? Is it a question of scale? Is it capability? What do you actually need there, and when might we expect that? Morning, everyone. morning everyone Sorry if I'm going over new ground here. sorry if i'm going over new ground here I missed a portion of the call. i missed a portion of the call I wanna touch on the GPOs again, given you mentioned the contribution to margins and the importance of them. i wanna touch on the gpos again given you mentioned the contribution to margins and the importance of them Since you only have the GPO in five of the top 10 countries, I mean, what do you actually need to put in place in the remaining 5 countries such that you'll be able to expand the model to those remaining countries? since you only have the gpo in five of the top 10 countries i mean what do you actually need to put in place in the remaining 5 countries such that you'll be able to expand the model to those remaining countries Is it a question of scale? is it a question of scale Is it capability? is it capability What do you actually need there, and when might we expect that? what do you actually need there and when might we expect that Secondly, longer term, I mean, you only relatively recently rationalized your portfolio, but is there gonna be a point in future where you think that you might actually need to enter new geographies to try and continue, contributing to the growth? Lastly, just on the vending, and again, you're talking about the importance there, but can you quantify the pace of organic growth in the vending space compared to the traditional offering that you have, please? Secondly, longer term, I mean, you only relatively recently rationalized your portfolio, but is there gonna be a point in future where you think that you might actually need to enter new geographies to try and continue, contributing to the growth? secondly longer term i mean you only relatively recently rationalized your portfolio but is there gonna be a point in future where you think that you might actually need to enter new geographies to try and continue contributing to the growth Lastly, just on the vending, and again, you're talking about the importance there, but can you quantify the pace of organic growth in the vending space compared to the traditional offering that you have, please? lastly just on the vending and again you're talking about the importance there but can you quantify the pace of organic growth in the vending space compared to the traditional offering that you have please

Speaker 1: Thank you for those questions. Let me just take new geographies first. I think the simple answer is no. As you'd have seen from the presentation today, you know, we see the opportunity in our existing markets with the new subsectors that we can enter being $600 billion by 2035. We've got phenomenal headroom into which to grow this business. We see no priority of entering other geographies. This is about really focusing on how we accelerate growth in our core sectors and subsectors, and particularly export the learnings that we've got, so our great performance in areas like sports and leisure, into those international market opportunities. Thank you for those questions. thank you for those questions Let me just take new geographies first. let me just take new geographies first I think the simple answer is no. i think the simple answer is no As you'd have seen from the presentation today, you know, we see the opportunity in our existing markets with the new subsectors that we can enter being $600 billion by 2035. as you'd have seen from the presentation today you know we see the opportunity in our existing markets with the new subsectors that we can enter being $600 billion by 2035 We've got phenomenal headroom into which to grow this business. we've got phenomenal headroom into which to grow this business We see no priority of entering other geographies. we see no priority of entering other geographies This is about really focusing on how we accelerate growth in our core sectors and subsectors, and particularly export the learnings that we've got, so our great performance in areas like sports and leisure, into those international market opportunities. this is about really focusing on how we accelerate growth in our core sectors and subsectors and particularly export the learnings that we've got so our great performance in areas like sports and leisure into those international market opportunities In terms of the GPOs that we're in, we're in five countries, so U.S., Canada, U.K., Australia, and now Germany. And fundamentally what we've done in pretty much all of those is we've acquired third-party GPO food and beverage operators, which have the technology, the sellers, the buyers to be able to really offer the most credible buying programs to third parties. By putting the Compass volumes into those programs, we get benefits with our suppliers. We get the halo of Compass growth, Compass M&A, the growth of our third parties and the new third parties that we bring into the operating model. All of that creates a level of growth with suppliers that they wouldn't otherwise enjoy with any one of those individual groups separately. That's how the model works for us. In terms of the GPOs that we're in, we're in five countries, so U.S., Canada, U.K., Australia, and now Germany. in terms of the gpos that we're in we're in five countries so u.s canada u.k australia and now germany And fundamentally what we've done in pretty much all of those is we've acquired third-party GPO food and beverage operators, which have the technology, the sellers, the buyers to be able to really offer the most credible buying programs to third parties. and fundamentally what we've done in pretty much all of those is we've acquired third-party gpo food and beverage operators which have the technology the sellers the buyers to be able to really offer the most credible buying programs to third parties By putting the Compass volumes into those programs, we get benefits with our suppliers. by putting the compass volumes into those programs we get benefits with our suppliers We get the halo of Compass growth, Compass M&A, the growth of our third parties and the new third parties that we bring into the operating model. we get the halo of compass growth compass m&a the growth of our third parties and the new third parties that we bring into the operating model All of that creates a level of growth with suppliers that they wouldn't otherwise enjoy with any one of those individual groups separately. all of that creates a level of growth with suppliers that they wouldn't otherwise enjoy with any one of those individual groups separately That's how the model works for us. that's how the model works for us As you rightly said, it is about capability, so it's about identifying those organizations and then scaling them. We're working very actively on where we see opportunities to partner and opportunities to acquire, to build those in those remaining markets. Of course, you know, with some of these acquisitions, we've acquired great technology, so there is an opportunity for us to bring that technology into other markets and to build it organically, but we really get ahead of it more quickly through an inorganic play. Then maybe Petros on the vending point. As you rightly said, it is about capability, so it's about identifying those organizations and then scaling them. as you rightly said it is about capability so it's about identifying those organizations and then scaling them We're working very actively on where we see opportunities to partner and opportunities to acquire, to build those in those remaining markets. we're working very actively on where we see opportunities to partner and opportunities to acquire to build those in those remaining markets Of course, you know, with some of these acquisitions, we've acquired great technology, so there is an opportunity for us to bring that technology into other markets and to build it organically, but we really get ahead of it more quickly through an inorganic play. of course you know with some of these acquisitions we've acquired great technology so there is an opportunity for us to bring that technology into other markets and to build it organically but we really get ahead of it more quickly through an inorganic play Then maybe Petros on the vending point. then maybe petros on the vending point

Speaker 11: Vending has been, in North America, the fastest growing business within B&I. We have been enjoying double-digit CAGR growth across all of the estate of the business, which is, you know, micro markets, placed on food offer, unattended, micro markets vending and office coffee. Has been consistent and has been a growing sector for us in North America. As Dominic referenced, we have a true opportunity to capitalize in international. We have the know-how, we have the capability to bring this forward in the international markets. Vending has been, in North America, the fastest growing business within B&I. vending has been in north america the fastest growing business within b&i We have been enjoying double-digit CAGR growth across all of the estate of the business, which is, you know, micro markets, placed on food offer, unattended, micro markets vending and office coffee. we have been enjoying double-digit cagr growth across all of the estate of the business which is you know micro markets placed on food offer unattended micro markets vending and office coffee Has been consistent and has been a growing sector for us in North America. has been consistent and has been a growing sector for us in north america As Dominic referenced, we have a true opportunity to capitalize in international. as dominic referenced we have a true opportunity to capitalize in international We have the know-how, we have the capability to bring this forward in the international markets. we have the know-how we have the capability to bring this forward in the international markets

Speaker 3: Understood. Thank you very much. Understood. understood Thank you very much. thank you very much

Speaker 10: Thank you. That was our last question. I will now hand it back to Dominic Blakemore for closing remarks. Thank you. thank you That was our last question. that was our last question I will now hand it back to Dominic Blakemore for closing remarks. i will now hand it back to dominic blakemore for closing remarks

Speaker 1: Just, thank you very much everyone for joining us this morning. We look forward to speaking with you on the Q3 call later in the year. Just, thank you very much everyone for joining us this morning. just thank you very much everyone for joining us this morning We look forward to speaking with you on the Q3 call later in the year. we look forward to speaking with you on the q3 call later in the year

Speaker 10: Thank you. This concludes today's call. Thank you for your participation. You may now disconnect. Thank you. thank you This concludes today's call. this concludes today's call Thank you for your participation. thank you for your participation You may now disconnect. you may now disconnect