Annual Report 2006 ISS Global A/S

To support single service excellence, ISS Global has
established Competence Centres within Cleaning
and Office Support in order to ensure knowledge
sharing, the development of best practice and
benchmarking across the Group.
Cleaning
Cleaning accounted for 57% of total Group revenue
in 2006 compared to 61% in 2005. Measured by
revenue, Cleaning grew by 11% from 2005 and
maintained its position as ISS Global’s largest business
area.
In order to support and develop ISS Global’s service
offering in Cleaning, the Cleaning Competence Centre
was strengthened in 2006. ISS Global established
a number of regional expert teams in Cleaning Excellence,
whose objective is to roll out the Cleaning Excellence
concept in every ISS Global country.
The Cleaning Excellence teams support the countries
with optimal solutions, the most efficient tools
and methods, training, improved logistics, efficient
supply chain and cost reductions. When implemented,
the concept also contributes to improved ergonomics
for the cleaning staff as well as reduced
environmental effects. In 2006, Cleaning Excellence
was introduced in Sweden, Denmark, Iceland, Ireland,
Spain and Switzerland.
ISS Global set up in most countries by establishing a
platform of cleaning services and subsequently expanding
into other relevant business areas. This was
the case, when ISS Global established operations in
new geographies in 2006. Mexico and the Philippines
were both added to the country list through acquisitions
of cleaning companies. The establishment
of ISS Global operations in Taiwan in January 2007
was also done through acquisitions, providing ISS
Global with a country platform, which to a large extent
is specialised in cleaning.
In other geographies, ISS Global added density to its
cleaning platform during 2006 through 25 bolt-on acquisitions.
Property Services
In 2006, revenue in Property Services increased approximately
DKK 1.4 billion and represented 22% of
total Group revenue compared to 23% in 2005.
During the year, ISS Global expanded its offering of
property services to new geographies and increased
density in other markets, where the services were already
being offered. The position in landscaping was
further consolidated through acquisitions in e.g.
Sweden and Singapore. The offering of building
maintenance and technical services was strengthened,
most notably in Switzerland, with the acquisition
of Edelweiss Facility Management AG (“Edelweiss”).
The platform for delivering pest control services
was enhanced in France and several other
ANNUAL REPORT 2006 / Company Report
European countries and the service was established
in Slovakia, Turkey and the Czech Republic.
Office Support
In 2006, Office Support accounted for approximately
8% of total Group revenue compared with
4% in 2005. The offering of office support services
was strengthened through the start-up of greenfield
operations and through bolt-on acquisitions.
In particular, Norway and Sweden added competencies
in this business area through a total of
eleven acquisitions that provided a range of services
within temporary staffing, plant services and
document handling. ISS Austria also acquired temporary
staffing competencies, and the acquisitions
of Tempo and Pegasus Security Holdings Ltd.
(“Pegasus”) equipped ISS Australia and ISS UK
with security services.
Catering
Catering accounted for about 6% of total Group
revenue which was largely unchanged from 2005.
The offering of catering services was expanded on
the Norwegian market through three acquisitions.
The largest single catering acquisition, Norfolk International
Ltd (“Norfolk”) was completed in Israel,
where ISS Global established a catering operation.
The acquisition approximately doubled the annual
revenue of ISS Israel. Furthermore, ISS Global established
or expanded its Catering Services in several
other countries in 2006.
Integrated Facility Services
Integrated Facility Services is a cornerstone in ISS
Global’s services offering. In 2006, Integrated Facility
Services generated revenue of DKK 4.1 billion
equivalent to 7% of total revenue compared to 6%
in 2005.
During the year, ISS Global strengthened its capabilities
within Integrated Facility Services in several
countries. In addition to the acquisition of Tempo in
Australia, ISS Switzerland acquired Edelweiss, one
of the country’s larger Facility Services companies.
In Germany, ISS Global acquired DEBEOS, a subsidiary
of the DaimlerChrysler Group and a leading
provider of Facility Services to the DaimlerChrysler
Group.
Acquisitions
ISS Global’s acquisition strategy builds on three
priorities. First, acquisitions have to fit with the
Group strategy, by underpinning the building of the
IFS competencies by possessing growth potential
and by adhering to the ISS Global corporate values.
Secondly, acquisitions must be value accretive
for ISS Global. Thirdly, the associated risks and the
related integration process must be manageable.
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