Annual Report 2006 ISS Global A/S

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.
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