Annual Report 2006 ISS Global A/S

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At the prevailing currency rates and including acquisitions and divestments completed up to 10 April 2007, ISS Global expects that revenue will increase by more than 10% and that the operating margin before other items will be maintained at the current level in 2007. Forward-looking statements This report may contain forward-looking statements. Statements herein, other than statements of historical fact, regarding future events or prospects, are forward-looking statements. The words ‘‘may’’, “will”, “should”, ‘‘expect’’, ‘‘anticipate’’, ‘‘believe’’, ‘‘estimate’’, ‘‘plan’’, “predict”, ‘‘intend’’ or variations of these words, as well as other statements regarding matters that are not historical fact or regarding future events or prospects, constitute forward-looking statements. ISS Global has based these forward-looking statements on its current views with respect to future events and financial performance. These views involve a number of risks and uncertainties, which could cause actual results to differ materially from those predicted in the forwardlooking statements and from the past performance of ISS Global. Although ISS Global believes that the estimates and projections reflected in the forward-looking statements are reasonable, they may prove materially incorrect, and actual results may materially differ as a result of the matters described in the Risk Factors beginning on page 21 of this report, including: changes in demand for the services offered by ISS Global; risks related to ISS Global’s growth strategy; risks related to the Group’s substantial indebtedness; ISS Global’s ability to operate profitably; ISS Global’s exposure to currency-related risks; complexities related to compliance with regulatory requirements of many jurisdictions; ISS Global’s dependence on its management team and qualified personnel; ISS Global’s potential liability for acts of its employees; the threat, institution or adverse determination of claims against ISS Global; potential environmental liabilities; and changes in laws and regulations. As a result, you should not rely on these forward-looking statements. ISS Global undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. Governing text The Annual Report has been translated from Danish into English. The Danish text shall be the governing text for all purposes and in case of any discrepancy the Danish version shall prevail. ANNUAL REPORT 2006 / Company Report 12
Strategy ISS Global is a fully owned subsidiary of ISS A/S (“ISS” or the “Group”) and is therefore subject to the same strategy as ISS. The following section describes the strategy of ISS. In 2005, ISS A/S (“ISS”) announced the new strategy, Route 101. Route 101 is a destination plan that describes ISS in terms of service offerings, organisation, geography, etc. The destination described in Route 101 is a Facility Services company with revenue of DKK 101 billion. ISS will continue to work towards this goal following the vision: “Lead Facility Services globally”. To further operationalise this vision, ISS in the spring of 2007 introduced the “ISS Strategy Plan 2007-2009”. ISS strategy plan 2007-2009 The ISS Strategy Plan 2007-2009 is not a new direction for the Group. The strategy of transforming ISS into the leading global Facility Services company remains the same. The ISS Strategy Plan 2007-2009 further details the initiatives needed to fulfil the vision. Facility services ISS continues the process of transforming itself into a facility services company. In response to customer demand, ISS has established operations in security services through acquisitions in several geographies. To further strengthen its strategic focus on developing these services, Security, including access control and guarding services, has been added as a fifth pillar in ISS’s “IFS house” as illustrated above. This means that ISS wants to offer a wide range of services supported by the five pillars of the IFS House: � Cleaning ANNUAL REPORT 2006 / Strategy � Office Support � Property Services � Catering � Security Service solutions are offered to the customer as single services, multi services or Integrated Facility Services (“IFS”). In a single service outsourcing the customer buys one service solution from ISS, e.g. outsourcing of cleaning or property services. The customer thereby enjoys the benefits of outsourcing to ISS and can capitalise on service know-how and best practices, labour management and handling of all HR issues, procurement benefits, reduced financial administration of the outsourced service area, increased operational flexibility, etc. In a multi service outsourcing the customer achieves the same benefits as single service outsourcing only for each outsourced service area as well as benefits of service integration where possible. In an Integrated Facility Services solution ISS takes over all or most of the service functions at the customer’s premises, provided the services are within the pillars of the IFS house. The customer thereby receives the full potential of single service outsourcing and benefits from an ISS on-site management solution that exploits the synergy potential, and as a result provides the customer with an integrated and cost effective solution. 13
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: structure, ISS established an Opera
Page 15 and 16: Geography ISS intends to increasing
Page 17 and 18: Openness and transparency In additi
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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
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Page 41 and 42: CONSOLIDATED CASH FLOW STATEMENT 1
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NOTES TO THE CONSOLIDATED FINANCIAL
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CASH FLOW STATEMENT OF THE PARENT C
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STATEMENT OF TOTAL RECOGNISED INCOM
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Definitions EBITDA = Operating prof
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Annual Report 2006 ISS Global A/S

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