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 72/91
Figure 18: Average Number of Employees & Staff Costs 2000-2004 11
Average Number of
Employees
Source: ISS
280,000
270,000
260,000
250,000
240,000
230,000
EBITDA Margins
71.2%
253,200
69.9%
259,800
67.7% 67.5% 65.9%
256,573
72
246,073
Historical Financial Information
267,279
80%
70%
60%
50%
40%
2000 2001 2002 2003 2004
Average No. Employees Staff Costs as % of Revenues
The adjusted EBITDA margins (normalised for non-recurring items) have been stable around 7.0%
since 1998, with the exceptions of 2000 and 2001 when EBITDA margins fell to 6.7% and 6.3%
respectively. ISS also incurred costs in 2001 due to the restructurings of the Aviation business
following the 9/11 event 12 . When adjusting for operational leases, which have increased over the last
few years due to the Company’s strategic decision to reduce the assets on its balance sheet while
increasing operational leases, EBITDAR margins have increased from 8.4% in 2000 to 10.3% in 2004.
This is a direct result of the Company’s increased focus on profitability, illustrated by the active
trimming of non-profitable contracts, and streamlining of the operations.
Figure 19: Historical Adjusted EBITDAR and EBITDAR Margin 2000-2004 13
EBITDAR
5,500
4,500
3,500
2,500
1,500
500
-500
8.4% 8.5%
2,425 2,952
Note: 2004 EBITDAR is not pro-forma adjusted
Source: ISS
9.8%
3,734
10.4%
3,773
10.3%
4,168
2000 2001 2002 2003 2004
EBITDAR EBITDAR Margin
Taxes
ISS was up until 2004 jointly taxed with a number of wholly owned Danish and foreign subsidiaries.
The Danish income tax payable is allocated between the jointly taxed Danish companies based on
their proportion of taxable income (full absorption including reimbursement of tax deficits). The jointly
taxed companies are included in the Danish tax on account scheme. The foreign companies in the
Group are subject to taxation in their local jurisdictions. As of 2005, the joint taxation has only included
fully owned Danish subsidiaries.
11 Represents average number of employees from January 1 through December 31.
12 Source: ISS A/S Annual Report, 2001, p.25.
13 Adjusted before impact from Other Income and Expenses relating to items regarded by management as non-recurring.
12%
10%
8%
6%
4%
2%
0%
Staff Costs as % of
Revenues
EBITDAR Margin