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 90/91
Appendix D: Consolidated Balance Sheet, ISS Holding
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Appendices
Note:
Unaudited Consolidated Preliminary Interim Balance Sheet and Purchase price allocation
The process of identifying and determining the fair values to be assigned to the acquired identifiable
assets and liabilities and contingent liabilities assumed in the acquisition of ISS has not yet been
completed. Accordingly, the unaudited consolidated preliminary interim balance sheet is based on
initial accounting and provisional values.
The preliminary purchase price allocation and calculation of goodwill are based on the carrying
amount of the acquired net assets of ISS as of the Acquisition Date, adjusted for certain known events
and transactions. These adjustments to the carrying amounts of the acquired net assets as of the
Acquisition Date include:
� a reduction of long-term debt to reflect the market price of ISS Global's debt obligation under its
EMTNs as of the Acquisition Date, resulting in a DKK 1,811 million reduction of long-term debt, which
includes reversal of DKK 389 million related to gains on interest rate swaps hedging the fixed interest
rate of the EMTNs;
� a DKK 107 million increase in pension obligations based on actuarial calculations updated in certain
countries in connection with the preparation of the unaudited consolidated interim financial statements
of ISS as of and for the nine months ended September 30, 2005;
� recognition of transaction-related obligations of DKK 382 million regarding the settlement of options
and warrants and certain obligations assumed by ISS as a direct consequence of the Transactions;
and
� the tax impact from the above adjustments.
Additional fair value adjustments must, however, still be made in respect of the assets acquired and
liabilities and contingent liabilities assumed, which are to be recognized under the following headings:
� customer contract portfolios and related customer relationships;
� software and other intangible assets;
� property, plant and equipment;
� financial assets;
� current assets;
� pensions (with the exception of the DKK 107 million adjustment mentioned above); and
� other provisions as well as contingent liabilities.
Furthermore, any other identifiable intangible assets must be recognized at fair value as of the
Acquisition Date, including the value of ISS's brands and non-contractual relationships, etc. In
particular, adjustments related to the amount to be recognized in respect of customer contract
portfolios and related relationships and brands and other intangible assets are expected to be
significant. Such fair value adjustments may have an impact on the recognized deferred tax assets
and liabilities. As amounts to be recognized in respect of certain of these intangible assets must be
amortized over their expected useful lives, ISS Holding will also experience a significant increase in its
consolidated non-cash expenses and a corresponding decrease in its consolidated net profit or
increase in its consolidated net loss and thereby a reduction of equity. In addition, the tax impact of the
above adjustments may be significant.
The amounts to be recognized when the purchase price allocation and goodwill calculation are
finalized will deviate significantly from those recognized in this unaudited consolidated preliminary
interim balance sheet as of September 30, 2005. Furthermore, ISS Holding cannot give any assurance
that such adjustments will not also result in increases in the ISS Holding’s consolidated expenses and
corresponding decreases in its consolidated net profit or increases in its consolidated net loss and
thereby a reduction of equity.