tatiana\Bank Book\Public Bank Book\FINAL <strong>ISS</strong> PUBLIC Bank IM - Press Release to EMTN_1.doc 9 Nov 2005 10:32 24/91 II. Company Characteristics 24 Company Characteristics
tatiana\Bank Book\Public Bank Book\FINAL <strong>ISS</strong> PUBLIC Bank IM - Press Release to EMTN_1.doc 9 Nov 2005 10:32 25/91 A. Large and Diversified Business 25 Company Characteristics <strong>ISS</strong> is one <strong>of</strong> the world’s largest providers <strong>of</strong> facility services, with 2004 revenue <strong>of</strong> DKK 40.4 billion (EUR 5.4 billion) and operations in 43 countries in Europe, South America, Asia and Australia. In 2004, no more than 19% <strong>of</strong> <strong>ISS</strong>’s 2004 revenue was generated in any one country, with France being the largest contributor to revenue. The services <strong>ISS</strong> <strong>of</strong>fers are diverse and, in addition to cleaning, include property, <strong>of</strong>fice support, catering and integrated facility services. Through its size and diversification <strong>ISS</strong> has reduced its exposure to any single country, industry sector, customer or service. As <strong>of</strong> September 30, 2005, <strong>ISS</strong> had more than 100,000 public and private sector customers, and in 2004, revenue derived from its ten largest customers was less than 5% <strong>of</strong> its total revenue. <strong>Table</strong> 9: <strong>ISS</strong>’s Ten Largest Customers (2004) Top 10 Customers Annual Contract Revenues DKK million % <strong>of</strong> Total Revenues 1. Customer A 213 0.5% 2. Customer B 203 0.5% 3. Customer C 176 0.4% 4. Customer D 149 0.4% 5. Customer E 149 0.4% 6. Customer F 144 0.4% 7. Customer G 144 0.4% 8. Customer H 137 0.3% 9. Customer I 134 0.3% 10. Customer J 129 0.3% 1,578 3.9% Source: <strong>ISS</strong> B. Leading Market Positions <strong>ISS</strong> is Europe’s largest provider <strong>of</strong> cleaning services and one <strong>of</strong> the largest providers <strong>of</strong> facility services globally. <strong>ISS</strong> is also one <strong>of</strong> the top three cleaning companies in the majority <strong>of</strong> the countries in which it operates, including in the United Kingdom, the Nordic Region (Sweden, Denmark, Norway and Finland), the Netherlands, Belgium, Switzerland, Austria, Spain, Hong Kong and Singapore. In 2004, 67% <strong>of</strong> <strong>ISS</strong>’s revenue was derived from its top 13 countries. <strong>ISS</strong> believes that these market positions increases the company’s ability to leverage its resources through increased cross-utilisation and sharing <strong>of</strong> best practises. In addition, <strong>ISS</strong> believes that its market positions increase its credibility as a contract provider, assisting it in obtaining and effectively servicing new contracts from larger, high-volume customers, including contracts involving multiple services or locations. <strong>ISS</strong>’s market positions and size also enable the Company to achieve more efficient management and administrative functions i.e. leveraging overheads. <strong>ISS</strong> believes the same factors also assist it in attracting and retaining qualified local managers.