Annual Report 2006 ISS Global A/S

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 January – 31 December. Amounts in DKK millions
5. Fees to auditors 2006
KPMG
Audit fees 1)
30
Other audit related services 10
Tax and VAT advisory services 6
Other services 2)
20
Total KPMG 66
1) Audit fees comprised audits of the consolidated and local Annual Reports.
2) Other services mainly comprised work related to acquisitions such as financial and tax due diligence etc.
6. Other income and expenses, net 2006
Gain on sale of Health Care operations 1)
-
Gain on sale of activities in Japan -
Gain on sale of option 2)
108
Gain on sale of Private Finance Initiative stake in the United Kingdom 3)
62
Gain on sale of properties 7
Other income 177
Re-scoping of IT outsourcing agreement 4)
(100)
-
Consolidation projects in the United Kingdom 5)
(62)
-
Redundancy and severance payments relating to organisational changes 6)
(50)
-
Group Restructuring project 7)
(35) (221)
Discontinuation of German hospital cleaning services business 8)
- (35)
Costs related to downscaling and divestment of Damage Control units 9)
(2) (35)
Loss on divestment of building maintenance business in the United Kingdom - (9)
Loss on discontinuation of aviation businesses - (5)
Other (36) (40)
Other expenses (285)
Other income and expenses, net (108)
1) In February 2005 ISS Global sold its Health Care operations and its 49% interest in CarePartner to a joint venture, now named Aleris Holding AB
("Aleris"), owned by ISS, EQT III Limited and Aleris's management, and realised a gain of DKK 123 million. At the end of June 2005, ISS Global sold its
interest in this joint venture to EQT III Limited, and realised a further gain of DKK 114 million.
2) Sale of a call option held by ISS Global related to property located in Denmark net of selling costs and write-down of fixtures.
3)
Sale of ISS Global's interest (PFI-stake) in Catalyst Healthcare (Worchester) Ltd. which operates certain facilities at Worchester Hospital in the United
Kingdom resulted in a gain of DKK 62 million. In 2005 a sale of ISS Global's interest (PFI-stake) in Catalyst Healthcare Holdings Ltd. resulted in a gain of
DKK 33 million.
4)
ISS Global has as part of its outsourcing of the operation and maintenance of certain of its information technology systems incurred re-scoping costs,
primarily as a result of change in the IT outsourcing agreement from a centralised to a decentralised solution.
5)
ISS Global has initiated projects in the United Kingdom comprising a consolidation of seven properties in the South of England and outsourcing of certain
related functions. The projects include termination of leaseholds, redundancy payments, write-off of fixed assets and relocation costs.
6)
ISS Global has in 2006 carried out organisational changes at both corporate level and country management level and thereby incurred severance and
redundancy payments.
7)
In the autumn of 2005, a Group Restructuring Project was initiated comprising certain organisational and structural changes to reduce ongoing costs in a
number of countries. The project included physical relocations, termination of leaseholds, redundancy payments, and contract restructuring.
8)
ISS Global's decision to discountinue its hospital cleaning services business in Germany through a phase-out of the remaining customer contracts
resulted in a DKK 35 million provision for termination costs, primarily redundancy payments.
9)
A downsizing of ISS Global's Damage Control activities in Denmark, Norway and Sweden and the divestment of Damage Control activities in Israel and
Sweden led to costs of DKK 2 million (DKK 35 million in 2005).
_____________________________________________________________________________________________________________
ANNUAL REPORT 2006 / Consolidated Financial Statements
60
2005
22
9
5
15
51
2005
237
10
-
33
-
280
(345)
(65)