I. Table of Contents - ISS

tatiana\Bank Book\Public Bank Book\FINAL ISS PUBLIC Bank IM - Press Release to EMTN_1.doc 9 Nov 2005 10:32 31/91
H. Comprehensive Financial Management and Control
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Company Characteristics
ISS has implemented comprehensive financial management and control procedures, which it
considers to be an essential element of its business. Through these procedures, ISS focuses, in
particular, on cash management. Each country operation must submit monthly cash flow forecasts to
the head office, and ISS’s corporate treasury monitors any deviations from these forecasts on a daily
basis. In addition, these country operations are supervised by regional managers, and controllers
employed by the head office visit the local operations regularly to ensure compliance with ISS’s control
procedures.
Please see below for a detailed summary of some of the key controls and systems which are in place:
Table 10: Overview of Key Controls and Systems in Place
Cash Forecasting Controls
� Country CFOs required to make a daily forecast for the following month
� Corporate treasury monitors actual development vs. forecast and follows up on deviations
— Country CFO must be able to explain the actual development and deviations at very short notice
Business Controls
� Annual strategy reviews
� Annual budget and financial plan
� Quarterly forecast updates to budgets
� Monthly business reviews
� Cash flow statement
� Monthly income statement, balance sheet and variance analysis
� Monthly business reporting (P&L for local business units, portfolio reporting, sales status reporting, etc.)
� Acquisitions approvals follow predefined formats
� Corporate control function and strong local controls
Source: ISS