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 49/91
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Company Overview
countries remains focused almost exclusively on cleaning services. Set forth below is information
regarding integrated facility services revenue for the periods presented. Percentage figures represent
the proportion of total ISS revenue for such periods.
Table 22: Breakdown of Revenues, Integrated Facility Services
2002
For the Year Ended 31-Dec
2003 2004
Revenues (1) : (unaudited) DKK (‘000) (%) DKK (‘000) (%) DKK (‘000) (%)
Integrated Facility Services 907 3 916 3 1,229 3
Note:
(1) Excludes revenues attributable to discontinued operations.
Source: ISS
It is ISS’s experience that both owners and users of facilities benefit from the outsourcing of support
services. The extent of potential cost savings generally depends on whether the customers outsource
single services, or opt for sourcing multiple services from one individual supplier. The more services
and the higher the level of service integration, the greater the potential savings are as it enables the
customer to effectively reduce overhead costs and the overall facility service costs. As part of the
service solution, ISS can manage the entire service delivery and ensure staff flexibility, quality of
service and reliability in a cost efficient manner, whilst customers can focus on their core operations. It
should also be stressed that the IFS market is predicted to grow the fastest of all the individual facility
services markets over the coming years 7 .
The transformation of the business towards integrated facility services suppliers varies by country. In
particular some regions, Overseas and Southern Europe, the businesses remain almost exclusively a
cleaning services which provides scope for further expansion of the IFS offering. However, within
most Northern European countries, ISS offers a full range of integrated facility services, a trend which
contributed to the improved margins in the region during 2004.
The gradual transformation of ISS from a cleaning service supplier to a multi-services and IFS provider
continued in 2004, spearheaded by those ISS organisations with the most developed facility services
concepts e.g. Nordic countries. A number of new facility services contracts were won, some of which
comprised a range of integrated services. These include:
� Nordea. ISS’s contract with Nordea, a leading financial services group in the Nordic and Baltic
regions, was signed in December 2004. Generating more than DKK 100 million annual revenue,
the deal was one of the largest of its kind in Northern Europe covering three main areas: catering
(canteens and restaurants on major Nordea sites), cleaning (some 400,000 metres squared of
office space) and reception services. The deal supports ISS’s ambition to deliver Integrated
Facility Services solutions with both a domestic and an international scope and runs for three years,
after which it is subject to renewal. More than 270 of ISS’s employees now work at Nordea’s sites
in the four countries, including operatives and managers transferring from Nordea to ISS.
� Other IFS Wins. Other examples of new integrated facility services contracts in 2004 include an
expansion of the CSC contract on a pan-European scale, Norsk Hydro in Norway, Renault/Nissan,
ICI and Chelsea & Westminster Hospital in the UK and Seagate in Thailand.
D. Operations
ISS maintains a decentralized organizational structure in which the chief executive officer of each
country’s operations typically reports directly to the ISS head office in Copenhagen. Each of the
country organizations is separately organized and acts independently in its local market. ISS’s head
office performs certain centralized functions, including procurement, risk management, finance, legal,
treasury, information technology, human resources, international sales and key account management
and supervision of mergers and acquisitions. ISS is broken up into the following regions:
� Northern Europe; comprising the United Kingdom, Denmark, Norway, Sweden, Finland, Ireland,
7 Source: Internationally recognised consulting firm