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Annual Report 2006 ISS Global A/S

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Strategy<br />

<strong>ISS</strong> <strong>Global</strong> is a fully owned subsidiary of <strong>ISS</strong> A/S (“<strong>ISS</strong>”<br />

or the “Group”) and is therefore subject to the same<br />

strategy as <strong>ISS</strong>. The following section describes the<br />

strategy of <strong>ISS</strong>.<br />

In 2005, <strong>ISS</strong> A/S (“<strong>ISS</strong>”) announced the new strategy,<br />

Route 101. Route 101 is a destination plan that describes<br />

<strong>ISS</strong> in terms of service offerings, organisation,<br />

geography, etc. The destination described in Route 101<br />

is a Facility Services company with revenue of DKK 101<br />

billion. <strong>ISS</strong> will continue to work towards this goal following<br />

the vision: “Lead Facility Services globally”.<br />

To further operationalise this vision, <strong>ISS</strong> in the spring of<br />

2007 introduced the “<strong>ISS</strong> Strategy Plan 2007-2009”.<br />

<strong>ISS</strong> strategy plan 2007-2009<br />

The <strong>ISS</strong> Strategy Plan 2007-2009 is not a new direction<br />

for the Group. The strategy of transforming <strong>ISS</strong> into the<br />

leading global Facility Services company remains the<br />

same. The <strong>ISS</strong> Strategy Plan 2007-2009 further details<br />

the initiatives needed to fulfil the vision.<br />

Facility services<br />

<strong>ISS</strong> continues the process of transforming itself into a<br />

facility services company. In response to customer demand,<br />

<strong>ISS</strong> has established operations in security services<br />

through acquisitions in several geographies. To<br />

further strengthen its strategic focus on developing<br />

these services, Security, including access control and<br />

guarding services, has been added as a fifth pillar in<br />

<strong>ISS</strong>’s “IFS house” as illustrated above. This means that<br />

<strong>ISS</strong> wants to offer a wide range of services supported<br />

by the five pillars of the IFS House:<br />

� Cleaning<br />

ANNUAL REPORT <strong>2006</strong> / Strategy<br />

� Office Support<br />

� Property Services<br />

� Catering<br />

� Security<br />

Service solutions are offered to the customer as<br />

single services, multi services or Integrated Facility<br />

Services (“IFS”).<br />

In a single service outsourcing the customer<br />

buys one service solution from <strong>ISS</strong>, e.g. outsourcing<br />

of cleaning or property services. The<br />

customer thereby enjoys the benefits of outsourcing<br />

to <strong>ISS</strong> and can capitalise on service<br />

know-how and best practices, labour management<br />

and handling of all HR issues, procurement<br />

benefits, reduced financial administration<br />

of the outsourced service area, increased operational<br />

flexibility, etc.<br />

In a multi service outsourcing the customer<br />

achieves the same benefits as single service<br />

outsourcing only for each outsourced service<br />

area as well as benefits of service integration<br />

where possible.<br />

In an Integrated Facility Services solution <strong>ISS</strong><br />

takes over all or most of the service functions at<br />

the customer’s premises, provided the services<br />

are within the pillars of the IFS house. The customer<br />

thereby receives the full potential of single<br />

service outsourcing and benefits from an <strong>ISS</strong><br />

on-site management solution that exploits the<br />

synergy potential, and as a result provides the<br />

customer with an integrated and cost effective<br />

solution.<br />

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