Annual Report 2006 ISS Global A/S

More documents

Recommendations

Info

NOTES TO THE FINANCIAL STATEMENTS OF THE PARENT COMPANY 1 January - 31 December. Amounts in DKK millions 10. Financial assets and liabilities 2006 Receivables from affiliates, non-current 8,419 2,196 8.5 Receivables from affiliates, current 3,719 6,538 8.6 Cash and cash equivalents 1) 955 719 3.4 Short-term debt 213 4 5.4 Debt to affiliates 4,008 1,471 7.5 11. Share capital 2006 Share capital (in DKK millions) Share capital at 1 January 160 Share capital at 31 December 160 Share capital (in thousands of shares) Number of shares at 1 January 160 Number of shares at 31 December - fully paid 160 12. Long-term debt 2006 2005 Euro Medium Term Notes due 2010 1) Euro Medium Term Notes due 2014 1) Senior facilities, term A 2) Senior facilities, term B 2) 2 ) Senior facilities, acquisition facilities Long-term debt 3) Fair value of long-term debt 4) 2005 2006 6,546 3,851 1,480 4,973 2,429 19,279 18,565 Long-term debt is payable as follows: 1-5 years 8,871 After 5 years 10,408 Total 19,279 Effective interest rate 5) Carrying amount 2005 Effective interest rate (%) 1) Of the total cash position, DKK 155 million (2005: DKK 0 million) is reserved for amortisation of term facility A in accordance with the terms of the Senior Facilities Agreement. 1) 7.8 8.5 1.6 4.7 7.6 2005 Carrying amount 160 160 160 160 6,645 3,909 1,892 2,400 1,304 16,150 14,530 6,717 9,433 16,150 5.4% 4.8% ISS Global A/S listed a Euro Medium Term Note programme in September 2003 and subsequently launched its inaugural issue. The EUR 850 million notes have a maturity of seven years and an annual coupon of 4.75%. In December 2004, ISS Global A/S issued EUR 500 million of notes with a maturity of ten years and an annual coupon of 4.50%. At 31 December 2006, the weighted average interest rate was 4.66% (2005: 4.49%). 2) The senior facilities are subject to customary undertakings, covenants (including financial covenants) and other restrictions. At 31 December 2006 the term facility A and term facility B had weighted average floating interest rates of 5.73% and 6.62% respectively (2005: 4.21% and 6.61%). The acquisition facilities had a weighted average floating interest rate of 5.97% (2005: 4.67%). 3) In 2006 financing fees amounting to DKK 72 million (2005: DKK 40 million) have been recognised in long-term debt. 4) The fair value of long-term debt is based on the quoted market price on the Luxembourg Stock Exchange of the Euro Medium Term Notes. For the remaining long-term debt fair value is equal to the nominal value. 5) Weighted average taking the effect of interest rate hedges into account. Continues _____________________________________________________________________________________________________________ ANNUAL REPORT 2006 / Parent Company Financial Statements 116
NOTES TO THE FINANCIAL STATEMENTS OF THE PARENT COMPANY 1 January - 31 December. Amounts in DKK millions 12. Long-term debt (continued) ISS Global A/S' total long-term debt at 31 December is denominated in the following original currencies: 2006 2005 DKK 2.5% 8.1% EUR 80.3% 70.8% GBP 9.6% 9.4% NOK 3.4% 5.4% SEK 3.1% 4.6% CHF 1.1% 1.7% ISS Global A/S has no subordinated debt and no debt convertible into equity. 13. Contingent liabilities Senior Facilities Agreement Commitment vehicle leases 100.0% 100.0% ISS A/S, ISS Global A/S and certain material subsidiaries of ISS Global A/S in Australia, Belgium, Denmark, Finland, France, the Netherlands, Norway, Spain, Sweden and the United Kingdom have provided guarantees for ISS Global A/S' borrowings under the senior facilities. The guarantees have been backed up by security over bank accounts, trade receivables, intra-group receivables and intellectual property rights of ISS A/S and these subsidiaries. In addition, the shares in the material subsidiaries and shares in certain of their subsidiaries as well as shares in certain subsidiaries in Austria, Germany, Hong Kong, Ireland, Portugal, Singapore and Switzerland have been pledged. Neither ISS A/S nor any of its direct or indirect subsidiaries have guaranteed or granted any security for FS Funding A/S' borrowing used for financing the acquisition of ISS A/S. On 1 January 2005 ISS Global A/S entered into a new global car fleet lease framework agreement for three years, including an option for extension for another subsequent three year term. The framework agreement contains an option for ISS Global A/S to terminate the underlying agreement for an entire country or the entire commitment with four weeks notice, to the end of a quarter subject to payment of a termination amount. The majority of the underlying agreements have a duration of 3-5 years. ISS Global A/S guarantees for all payments from directly and indirectly owned subsidiaries. The total contingent liablity amounted to DKK 1,053 million as per 31 December 2006 (2005: DKK 1,019 million). Outsourcing of IT ISS Global A/S has an IT outsourcing agreement with Computer Sciences Corporation (CSC) running until 2015. ISS Global A/S's contractual obligations related to the agreement at 31 December 2006 amounted to approximately DKK 388 million (DKK 430 million in 2005). ISS Global A/S and CSC have been in discussions on implications of certain aspects of the outsourcing agreement. These discussions included various claims of each party and have lead to change of scope of the contract. As part of the re-scoping of the IT outsourcing agreement ISS Global A/S has incurred costs amounting to DKK 100 million, which have been recognised at 31 December 2006 in Other expenses. The subsequent discussions regarding re-scoping of the contract between ISS Global A/S and CSC as well as the incurred costs, which have been recognised at 31 December 2006, have resulted in a reduction of ISS Global A/S's contractual obligations of at least DKK 160 million. Parent company guarantees ISS Global A/S has issued guarantees for subsidiaries' local bank overdrafts totalling DKK 3,483 million (2005: DKK 3,497 million). As per 31 December 2006, DKK 1,135 million is utilised (2005: DKK 1,463 million). Furthermore, ISS Global A/S has issued other gurantees for subsidiaries totalling DKK 240 million (2005: DKK 143 million). VAT ISS Global A/S and certain Danish affiliates are jointly registered for VAT and are jointly liable for the payment hereof. _____________________________________________________________________________________________________________ ANNUAL REPORT 2006 / Parent Company Financial Statements 117
Page 1 and 2:
ISS Global A/S Bredgade 30 DK - 126
Page 3 and 4:
Key Figures Amounts in DKK millions
Page 5 and 6:
growth. Furthermore, the effect of
Page 7 and 8:
In 2006, ISS Global continued the p
Page 9 and 10:
to costs related to a turnaround pl
Page 11 and 12:
structure, ISS established an Opera
Page 13 and 14:
Strategy ISS Global is a fully owne
Page 15 and 16:
Geography ISS intends to increasing
Page 17 and 18:
Openness and transparency In additi
Page 19 and 20:
tors. The controllers perform follo
Page 21 and 22:
Risk Factors ISS Global is a fully
Page 23 and 24:
tual obligations could harm ISS’s
Page 25 and 26:
If ISS fails to manage growth and i
Page 27 and 28:
ISS may incur substantial liabiliti
Page 29 and 30:
thus reduce or prevent dividend pay
Page 31 and 32:
Independent Auditor’s Report To t
Page 33 and 34:
Organic growth ISS Global uses esti
Page 35 and 36:
2006 primarily related to redundanc
Page 37 and 38:
Tempo as well as a number of smalle
Page 39 and 40:
including non-interest-bearing debt
Page 41 and 42:
CONSOLIDATED CASH FLOW STATEMENT 1
Page 43 and 44:
CONSOLIDATED STATEMENT OF TOTAL REC
Page 45 and 46:
NOTES TO THE CONSOLIDATED FINANCIAL
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66: NOTES TO THE CONSOLIDATED FINANCIAL
Page 103 and 104: CASH FLOW STATEMENT OF THE PARENT C
Page 105 and 106: STATEMENT OF TOTAL RECOGNISED INCOM
Page 107 and 108: NOTES TO THE FINANCIAL STATEMENTS O
Page 115: NOTES TO THE FINANCIAL STATEMENTS O
Page 123: Definitions EBITDA = Operating prof
show all

Annual Report 2006 ISS Global A/S

Create successful ePaper yourself

Delete template?

Save as template?