Annual Report 2006 ISS Global A/S

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NOTES TO THE FINANCIAL STATEMENTS OF THE PARENT COMPANY 1 January - 31 December. Amounts in DKK millions 14. Derivatives (continued) Contractual values and unrealised gains and losses are specified below for financial instruments used to hedge the foreign exchange risk and the interest rate risk: Unrealised Included in Taken directly 2005 gain/(loss) the income to equity on Contractual on revaluation statement for 31 December Financial instruments Forward foreign currency, purchases value to fair value 2005 2005 Maturity CHF 124 0 0 - 2006 EUR 7,998 (0) (0) - 2006 GBP 400 1 1 - 2006 NOK 444 3 3 - 2006 SEK 289 1 1 - 2006 Others 31 0 0 - 2006 9,286 Forward foreign currency, sales AUD 578 CHF 209 EUR 4,939 GBP 467 HKD 214 NOK 224 SGD 12 USD-related 221 Others 99 Interest rate instruments Interest rate swap - 2014 (EUR), receiver 1) 6,963 5 5 (8) (3) (5) 2006 (0) - (0) 2006 0 0 0 2006 0 (0) - 2006 (2) (2) - 2006 (1) - (1) 2006 (0) (0) - 2006 (2) - (2) 2006 (0) (0) 0 2006 (13) (5) (8) 1,243 30 30 - Total financial instruments 22 30 (8) Hedging of net investments in foreign subsidiaries at 31 December 2005 AUD 245 CHF 250 EUR 4,651 GBP 465 NOK 384 SEK 27 USD-related 378 Others 765 Net investments in foreign subsidiaries Hedging 7,165 (369) (209) (2,611) (467) (224) - (221) (70) (4,171) - Net investments with trans- lation risk 2014 Net investments with trans- lation risk, local currency, millions (124) (27) 41 9 2,040 273 (2) (0) 160 171 27 34 157 - 695 - 1) The swap converts one-third of the fixed interest rate on the EUR 500 million bond loan into a floating rate. The income of DKK 30 million off-sets a similar expense in the income statement related to the bond loan. Of this amount DKK 27 million represented the positive marked-to-market value of the interest rate swap. _____________________________________________________________________________________________________________ ANNUAL REPORT 2006 / Parent Company Financial Statements 120 2,994
NOTES TO THE FINANCIAL STATEMENTS OF THE PARENT COMPANY 1 January - 31 December. Amounts in DKK millions 15. Related party transactions The sole shareholder of ISS Global A/S, ISS A/S has controlling influence in ISS Global A/S. The ultimate controlling company of ISS Global A/S is FS Invest S.à.r.l. ("FS Invest"), which is 54% owned by funds advised by EQT Partners and 44% owned by Goldman Sachs Capital Partners. Members of the Board of Directors and Managing Directors Apart from remuneration as described in note 2, Staff Costs, note 3, Share-based payments and the incentive programmes described below there were no significant transactions with members of the Board of Directors or Managing Directors during the year. Incentive Programmes The Principal Shareholders have offered a management participation programme, under which the Managing Directors, the current Board of Directors and a number of senior officers of ISS Global were offered to make an investment. The programme is structured as a combination of direct and indirect investments in a mix of shares and warrants of FS Invest, ISS Global A/S's ultimate parent, amounting to DKK 176 million in total. Furthermore, as described in note 3, Share-based payments, certain officers were granted a total of 784,272 warrants in FS Invest. The management participation programme was rolled out in July 2006 and from the outset 138 eligible officers participated in the programme. Non-executive members of the former Board of Directors (except representatives of the Principal Shareholders) have been offered to participate in a directors participation programme, under which they have invested in a mix of shares and warrants of FS Invest amounting to approximately DKK 6 million in total. In addition they have co-invested with the Principal Shareholders for approximately DKK 17.6 million in total. ISS Global A/S' Board of Directors' and Managing Directors' external directorships and external executive positions Board of Directors Board Member Executive Position Jørgen Lindegaard Telenor ASA and Efsen Engineering A/S None Flemming Schandorff None None Jeff Gravenhorst None None Managing Directors Flemming Schandorff None None Bjørn Raasten None None Christian Kofoed Jakobsen None None Affiliates In 2006, ISS Global A/S had the following transactions with affiliates. All transactions were made on market terms. ISS Global A/S received/paid interest from/to affiliates, see note 6, Net finance costs. ISS Global A/S paid/received joint taxation contribution equal to 28% of taxable income to/from FS Equity A/S (the ultimate parent company in Denmark), see note 7, Taxes. ISS Global A/S has receivables from affiliates and debt to affiliates, see note 10, Financial assets and liabilities. ISS Global A/S received dividends from affiliates, see note 9, Non-current assets. ISS Global A/S paid dividends to ISS A/S. Apart from the above there were no other material transactions with related parties and shareholder during the year. ________________________________________________________________________________________________ ANNUAL REPORT 2006 / Parent Company Financial Statements 121
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ISS Global A/S Bredgade 30 DK - 126
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Key Figures Amounts in DKK millions
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growth. Furthermore, the effect of
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In 2006, ISS Global continued the p
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to costs related to a turnaround pl
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structure, ISS established an Opera
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Strategy ISS Global is a fully owne
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Geography ISS intends to increasing
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Openness and transparency In additi
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tors. The controllers perform follo
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Risk Factors ISS Global is a fully
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tual obligations could harm ISS’s
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If ISS fails to manage growth and i
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ISS may incur substantial liabiliti
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thus reduce or prevent dividend pay
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Independent Auditor’s Report To t
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Organic growth ISS Global uses esti
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2006 primarily related to redundanc
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Tempo as well as a number of smalle
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including non-interest-bearing debt
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CONSOLIDATED CASH FLOW STATEMENT 1
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CONSOLIDATED STATEMENT OF TOTAL REC
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NOTES TO THE CONSOLIDATED FINANCIAL
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Page 69 and 70: 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
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Page 119: NOTES TO THE FINANCIAL STATEMENTS O
Page 123: Definitions EBITDA = Operating prof
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Annual Report 2006 ISS Global A/S

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