Annual Report 2006 ISS Global A/S

NOTES TO THE FINANCIAL STATEMENTS OF THE PARENT COMPANY
1 January - 31 December. Amounts in DKK millions
3. Share-based payments
Warrant programmes
At 1 January 2006, certain members of Key Management of ISS Global A/S held warrants issued under two warrant programmes.
1999 warrant programme
At 1 January 2006, current members of Key Management held 28,000 warrants under the 1999 warrant programme. All of these
warrants expired out-of-the money on 6 May 2006.
2000 warrant programme
At 1 January 2006, current members of Key Management held 16,000 warrants under the 2000 warrant programme. The subscription
price ranged from DKK 514 to DKK 522 and the warrants were exercisable for a period of 30 days following the announcement of the
annual results for the years 2003-2006. The outstanding warrants are exercisable within a period of 30 days following the
announcement of ISS A/S’s Annual Report 2006. The warrants expire on 10 May 2007. ISS Global A/S believes that the value of the
outstanding warrants under the 2000 warrant programme was insignificant at 31 December 2006.
FS Invest warrant programme
In July 2006, funds advised by EQT Partners and Goldman Sachs Capital Partners (the “Principal Shareholders”) established a
management participation programme.
As part of the programme, Key Management, the Board of Directors of ISS Global A/S and senior managers of the ISS Global Group
were granted a total of 784,272 warrants in FS Invest S.á.r.l (“FS Invest”), ISS Global A/S’s ultimate parent. The warrants were
issued in two series, A and B, both expiring on 1 June 2014. The estimated FS Invest share price at the time of the grant was DKK
1,019 per share. The warrants entitle the holder to subscribe for FS Invest shares at an exercise price of DKK 2,039 and DKK 2,549
per share for warrants in series A and series B, respectively, in a proportion which is determined by the exercise restrictions set out
below. The warrants are exercisable for a period of 30 business days prior to and ending on 1 June 2014.
The warrants under the above-mentioned programmes are non-transferable.
As all senior managers of the ISS Global Group is employed by ISS Management A/S the table below only contains warrants granted
to Key Management of ISS Global A/S.
FS Invest warrants granted to Key Management of ISS Global A/S in 2006
Series A Series B
Warrants granted in 2006 3,030 125,424
Warrants forfeited in 2006 - -
Outstanding at 31 December 2006
Key Management
3,030 125,424
In total, 128,454 warrants were granted to Key Management of ISS Global A/S under series A and B. No warrants were forfeited in
2006 and at 31 December 2006, the number of outstanding warrants was unchanged at 128,454.
Accounting
In accordance with the provisions of IFRS 2 Share-based Payment, ISS Global applies IFRS 2 to grants of warrants that were granted
after 7 November 2002, and had not yet vested at 1 January 2005.
Share-based payments not within the scope of IFRS 2
The outstanding warrants issued by ISS A/S are not within the scope of IFRS 2, and the fair value of these instruments has not been
expensed in the income statement.
Share-based payments within the scope of IFRS 2
The FS Invest warrants granted to Key Management, the Board of Directors of ISS Global A/S and senior managers of the ISS Global
Group are within the scope of IFRS 2. The share-based payment transactions including FS Invest warrant grants to Key Management
of ISS Global A/S are accounted for as equity-settled transactions.
Continues
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