Company announcement no. 20/2023
Copenhagen, 9 August 2023
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Interim report for 1 January – 30 June 2023
Continued strong OneISS strategy execution with upgrade of organic growth outlook
Highlights
Organic growth was 10.4% in Q2 2023 (Q1 2023: 11.3%) and 10.9% in H1 2023 (H1 2022: 6.7%) primarily
driven by price increases implemented across the Group and underlying volume growth. In H1 2023, price
increases in Turkey contributed around 3%-points, and revenue from projects and above-base work were flat.
Operating margin before other items (excl. IAS 29) was 3.3% in H1 2023 (H1 2022: 2.9%). Non-recurring costs
related to a strategic review in France negatively impacted the margin by approx. 0.2%-points. Excluding the
French business which ISS intends to divest, operating margin (excl. IAS 29) was 3.6%.
Due to inherent strategic challenges, difficult market conditions, and muted commercial development, the
French business has not generated the expected financial improvements. This led to recognition of a goodwill
impairment of DKK 937 million and write-down of non-monetary assets of DKK 320 million.
In a separate company announcement, ISS today announced the intention to divest its French business,
except for Global Key Account customers. As a consequence, ISS France will going forward be classified as
held for sale and discontinued operations and the results will be presented in “Net profit from discontinued
operations” in the statement of profit or loss.
Free cash flow in H1 2023 amounted to DKK (1.1) billion (H1 2022: DKK 0.6 billion). As expected, free cash flow
was negatively impacted by changes in working capital as the high revenue growth led to an increase in
receivables.
The strategic direction is confirmed following the appointment of Kasper Fangel as the new Group CEO from
1 September 2023. The strong focus on growth and execution of the OneISS strategy will remain unchanged,
and ISS is well on track towards reaching the operating margin target of above 5% in 2024.
The rigorous execution of the OneISS strategy continued and the commercial momentum improved,
underlined by the win of a new key account IFS contract with Defra in the UK. The strengthened commercial
and operating models showed visible results with improved customer engagement and the customer
retention rate increased to 95% (LTM) in Q2 2023.
In Spain, ISS has signed an acquisition of the cleaning provider, Grupo Fissa. This transaction has a strong
strategic fit to the OneISS strategy, is financially accretive and adds around 1% to Group revenue.
As announced today in a separate company announcement, outlook for organic growth is upgraded to ‘7 –
9%’ (6 – 8%), as a result of expected higher customer activity and thereby higher underlying volume growth.
Outlook for operating margin of 4.25 – 4.75% and free cash flow of around DKK 2 billion is confirmed. The
outlook for organic growth and operating margin excludes any contribution from discontinued operations.
Jacob Aarup-Andersen Group CEO, ISS A/S, says:
“The strong execution of the OneISS strategy continued in the first half of 2023, and the investments we have made are
showing visible results. We have won new key account contracts within our prioritised segments, customer engagement
is improving, and retention is the highest in the company’s more than 120-year history. This has been achieved through
relentless execution and strict focus on delivering best-in-class service experiences. As we continue our journey towards
a stronger, simpler and closer ISS, we today also announce a refocusing of our business in France. With this initiative,
we ensure that we continue to be a strong partner for our Global Key Accounts and deliver long-term growth at
sustainable margins across our business.”
Financial overview Q1 2023 Q2 2023 H1 2023 H1 2022
DKK million (unless otherwise stated)
Revenue 19,930 19,731 39,661 36,943
Organic growth, % 11.3 10.4 10.9 6.7
Operating profit before other items 1,250 1,061
Operating profit before other items, excl. IAS 29 (hyperinflation) 1,306 1,073
Operating margin (before other items), % 3.2 2.9
Operating margin (before other items), %, excl. IAS 29 (hyperinflation) 3.3 2.9
Free cash flow (1,074) 644
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
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Key figures and financial ratios
Financials H1 2023 H1 2022 2022
Results (DKKm)
Revenue 39,661 36,943 76,538
Operating profit before other items, excl. IAS 29 1,306 1,073 2,876
Operating profit before other items 1,250 1,061 2,847
Operating profit (36) 1,206 2,835
EBITDA before other items 1,967 1,841 4,364
EBITDA 713 2,021 4,421
Pro forma adjusted EBITDA (LTM) 4,503 4,001 4,375
Financial expenses, net (318) (157) (389)
Net profit from continuing operations (589) 797 2,005
Net profit from discontinued operations 34 122 131
Net profit (555) 919 2,136
Net profit adjusted 713 600 1,940
Cash flow (DKKm)
Cash flow from operating activities (322) 1,354 3,333
Acquisition of intangible assets and property, plant
and equipment, net (355) (369) (779)
Free cash flow (excl. IAS 29) (1,072) 643 1,726
Free cash flow (1,074) 644 1,734
Financial position (DKKm)
Total assets 45,132 46,220 47,005
Goodwill 19,205 20,465 20,450
Additions to property, plant and equipment 203 154 345
Equity 9,456 9,840 10,815
Net debt 12,971 12,199 11,540
Shares ('000)
Number of shares issued 185,668 185,668 185,668
Number of treasury shares 335 939 938
Average number of shares (basic) 185,333 184,730 184,730
Average number of shares (diluted) 188,258 185,664 187,243
Ratios H1 2023 H1 2022 2022
Financial ratios (%, unless otherwise stated)
Organic growth 10.9 6.7 7.8
Acquisitions and divestments, net 0.4 (2.0) (1.7)
Currency and other adjustment (3.9) 1.2 1.2
Total revenue growth 7.4 5.9 7.3
Operating margin, excl. IAS 29 3.3 2.9 3.8
Operating margin 3.2 2.9 3.7
Cash conversion (85.9) 60.7 60.9
Equity ratio 21.0 21.3 23.0
Net debt / Pro forma adjusted EBITDA 2.9x 3.0x 2.6x
Share ratios (DKK)
Basic earnings per share (EPS) (3.1) 4.8 11.1
Diluted EPS (3.1) 4.8 11.0
Basic EPS (continuing operations) (3.3) 4.1 10.4
Diluted EPS (continuing operations) (3.3) 4.1 10.3
Non-financials H1 2023 H1 2022 2022
Social data
Full-time employees 77% 76% 77%
Employees end of period, number 345,303 354,341 351,053
Definitions, see Annual Report 2022.
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
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Strategic update
The rigorous execution of the OneISS strategy
continued in the first half of 2023 with strong
organic growth and solid financial improvements.
The progress towards reaching the operating
margin target of above 5% continued and with the
intention to divest the French business, ISS is even
more confident in achieving the financial targets in
2024.
During the first six months of 2023, the commercial
momentum improved further, underlined by the win
of a new key account IFS contract with Defra, as well
as wins of new medium sized contracts, leveraging
the OneISS strategic investments in the commercial
and operating models. In addition, ISS has extended
several key account contracts, including the
extension and expansion of the global IFS contract
with a global consultancy company. In Q2 2023, the
strategic focus on retaining existing customers
yielded further results as customer retention rate
improved to 95% (LTM). A customer engagement
survey in Q2 2023 among key accounts in Europe,
confirmed that ISS has a strong portfolio of satisfied
customers, which is essential when building and
expanding long-term partnerships with customers.
The global implementation of the OneISS strategy
continued to successfully deliver the planned
financial outcomes. However, the development in
France has not generated the expected financial
improvements due to inherent strategic challenges,
difficult market conditions, and continued muted
commercial development. Therefore, today ISS has
announced the intention to divest its French
business with the exception of Global Key Account
customers that would become the exclusive focus
going forward. The expected financial impact on
profit or loss is presented under Subsequent events,
page 9.
ISS has signed an agreement to acquire the shares
in Grupo Fissa, a reputable cleaning provider
predominately in southern Spain. With this
acquisition, ISS will strengthen its operations in the
region and improve the service delivery for local key
accounts. The acquired company comprises
cleaning contracts within healthcare and local
prioritised segments and represents around 1% of
Group revenue. The acquisition has a strong
strategic fit with the OneISS strategy and our stated
ambition to remain #1 globally in cleaning, and it is
margin accretive (post synergies) within 6 months to
ISS Spain, as well as to the Group. The transaction is
considered a bolt-on business addition to a country
with an experienced management team and strong
operational and financial performance. The
acquisition is expected to be completed in Q3 2023.
Operational development
As expected, the operational performance
continued to improve in the first half of 2023.
OneISS efficiencies and cost initiatives, as well as
operating leverage continued to drive margin
improvements across the Group. The enhanced
operating model combined with the scaled and
improved service products and technology
applications yielded improvements in line with plans.
Performance improvements in the previously
underperforming areas continued to progress in H1
2023, driven by underlying improvements on the
Deutsche Telekom contract and in the UK. On the
Deutsche Telekom contract operational
performance continued to improve through strict
focus on operational efficiencies. The contract
continues to be structurally challenging, and as
previously informed, certain contractual
disagreements between ISS and Deutsche Telekom
are subject to arbitration proceedings initiated by
ISS. The proceedings, in which the parties have
exchanged claims against each other, follow the
rules of the DIS arbitration institute in Germany. The
outcome and timeframe of the proceedings are
uncertain.
Appointment of new Group CEO
On 29 June 2023, ISS announced the appointment of
Kasper Fangel as the new Group CEO, effective 1
September 2023, following a rigorous internal and
external search process. This appointment comes
after the resignation of Jacob Aarup-Andersen in
March 2023, and it marks an important milestone in
ISS's continued growth and strategic execution of
the OneISS strategy.
ISS has initiated a search process for the new Group
CFO, which will include both internal and external
candidates. The appointment of a new Group CFO
will be made in due course.
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
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Group Performance
Operating results
Group revenue in the first six months of 2023 was
DKK 39.7 billion, an increase of 7.4% compared with
the same period last year. Organic growth in H1
2023 was 10.9% as the strong growth momentum
continued in Q2, despite a tougher comparison. The
impact from acquisitions and divestments, net was
0.4%, and currency effects decreased revenue by
2.1%, while the net impact from hyperinflation
restatement in Turkey (IAS 29) was negative 1.8%.
Organic growth was 10.9% in the first six months of
2023 driven by underlying volume growth mainly
due to price increases implemented across the
Group and increased activity levels in the customer
portfolio.
Across the Group, price increases have been
successfully implemented, in line with contractual
agreements, to mitigate the impact of cost inflation.
This impacted organic growth positively by around
6%-points, of which around 3%-points were related
to Turkey.
The underlying volume growth contributed around
4%-points to organic growth driven by continued
higher activity level and increased office occupancy
rates. This particularly impacted food services
positively, which grew by more than 25% mainly
driven by more than 35% organic growth in the US,
where food services are predominately office-based.
Food services accounted for 15% (H1 2022: 13%) of
Group revenue in the first half.
In H1 2023, the organic growth contribution from
net new contract wins was slightly positive with
around 0.5%-points, as the positive effect from
contracts won during the last quarters was only
partly offset by the exit of the Danish Defence
contract.
Revenue from projects and above-base services
remained at a high level and was flat for the first six
months of 2023. The lower demand for Covid-19
related services, especially in the Asia & Pacific
region, was offset by increased revenue from
traditional above-base services and project work.
All regions contributed to the positive development
in H1 2023. In Americas, the organic growth was
20% due to relatively higher exposure to food
services and start-up of new contracts. Growth rates
in all other regions were solid, with Central &
Southern Europe being positively impacted by price
increases, underlying volume growth and net
contract wins in Turkey.
Operating profit before other items was DKK 1,250
million (H1 2022: DKK 1,061 million) and operating
margin was 3.2% (H1 2022: 2.9%). Excluding the
effect from IAS 29 (Turkey hyperinflation) operating
profit before other items amounted to DKK 1,306
million (H1 2022: DKK 1,073 million) corresponding
to an operating margin of 3.3% (H1 2022: 2.9%).
The increase in operating margin in the first half of
2023 was a result of the continued underlying
improvement on the Deutsche Telekom contract
and in the UK, as well as OneISS efficiencies and cost
initiatives across countries and supported by
operating leverage from higher revenue.
The operational development in France continued to
be challenging and the operating margin did not
develop as expected due to challenging market
1)
The net impact from hyperinflation restatement in Turkey (IAS 29) was negative with 1.8% on Group- level, that has been included in Currency & other adj.
Revenue and growth
DKK million
YTD 2023 YTD 2022
Organic
growth
Acq./
div.
Currency &
other adj.
Revenue
Growth
Northern Europe 14,428 14,214 6% (0)% (4)% 2%
Central & Southern Europe 13,144 11,871 16% 2% (7)% 11%
Central & Southern Europe, excl IAS 29 13,594 11,743 16% 2% (2)% 16%
Asia & Pacific 7,037 6,735 7% (0)% (3)% 4%
Americas 4,773 3,873 20% - 3% 23%
Other countries 303 275 14% - (4)% 10%
Corporate / eliminations (24) (25) - - - -
Group
1 )
39,661 36,943 10.9% 0.4%
(3.9)%
7.4%
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
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conditions and continued muted commercial
development. Non-recurring costs related to a
strategic review in France reduced Group operating
margin by approx. 0.2%-points.
From a regional perspective, the margin
improvements were broad-based with significant
improvement in Central & Southern Europe fuelled
by improved profitability on the Deutsche Telekom
contract, OneISS efficiencies and operating leverage
across the region. Both in the Asia & Pacific and the
Americas regions operating margin increased
through solid operational execution and operating
leverage. The margin in Northern Europe declined
slightly due to lower contribution from margin
enhancing above-base services. Price increases and
operational efficiencies implemented across the
Group kept the margin generally unaffected from
cost inflation.
Adjusted for the estimated impact of subsequently
classifying France as held for sale and discontinued
operations as per separate company announcement
today, operating margin excl. IAS 29 for the first six
months of 2023 was 3.6%.
Corporate costs amounted to DKK 472 million (H1
2022: DKK 472 million) corresponding to 1.2% of
Group revenue (H1 2022: 1.3%). As such, corporate
costs remained flat, despite the higher revenue,
reflecting the strengthened operating model
implemented under the OneISS strategy.
Other income and expenses, net was an expense of
DKK 317 million (H1 2022: income of 180 million),
primarily as a result of an impairment loss of DKK
320 million on non-monetary assets in France
identified in the impairment test performed as of 30
June 2023, see Goodwill impairment below.
Goodwill impairment was DKK 937 million related to
France. During the first six months of 2023, it has
become clear that the necessary profitability
improvements cannot be achieved on a stand-alone
basis without further restructurings and significantly
higher investments than previously anticipated. As a
result, management reassessed the assumptions
for growth and operating margin, which led to the
recognition of an impairment loss as of 30 June
2023, see note 7, Impairment tests, page 26.
Financial expenses, net was DKK 318 million (H1
2022: DKK 157 million) including a monetary gain of
DKK 40 million relating to hyperinflation restatement
in Turkey (IAS 29). Excluding the impact from IAS 29,
financial expenses, net was DKK 373 million (H1
2022: DKK 258 million). The increase was mainly due
to foreign exchange losses on intercompany loans
denominated in TRY and EUR. Further, the rising
interest rates and higher utilisation of banking
facilities had a negative effect.
The effective tax rate in H1 2023 was (65.9)% (H1
2022: 24.0%) and (66.2)% when adjusted for the
impact of IAS 29. The effective tax rate is negatively
impacted by non tax-deductible impairment in
France. Adjusted for the French impairment, the
effective tax rate in H1 was 24.4%.
Net profit from discontinued operations was DKK 34
million (H1 2022: DKK 122 million) in the first six
months of 2023, including DKK 32 million of gain on
divestments primarily related to Brunei.
Net profit was DKK (555) million (H1 2022: DKK 919
million). The decline compared to the same period
last year was mainly due to impairment of goodwill
and non-monetary assets in France of DKK 1,257
million, divestments from continuing and
discontinued operations in H1 2022, and increased
financial expenses, net.
Operating profit before other items
DKK million
YTD 2023 YTD 2022
Northern Europe 626 4.3% 631 4.4%
Central & Southern Europe 482 3.7% 366 3.1%
Central & Southern Europe, excl IAS 29 538 4.0% 378 3.2%
Asia & Pacific 414 5.9% 388 5.8%
Americas 189 4.0% 137 3.5%
Other countries 11 3.6% 11 4.0%
Corporate / eliminations (472) - (472) -
Total 1,250 3.2 % 1,061 2.9%
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
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Q2 2023
Group revenue in Q2 2023 was DKK 19.7 billion, an
increase of 4.6% compared with the same period last
year. Organic growth was 10.4% (Q2 2022: 8.0%),
acquisitions and divestments, net increased revenue
by 0.4% and currency effects were negative 2.8%,
while the net impact from hyperinflation
restatement in Turkey (IAS 29) was negative with
3.4%.
Organic growth decreased only slightly from the
level reported in Q1 2023 of 11.3%. The organic
growth was driven by price increases implemented
across the Group which contributed around 6%-
points, of which 3%-points were from Turkey.
Further, increased activity level among customers
drove underlying volume growth with around 3%-
points growth contribution. Activity levels in the
customer portfolio and office occupancy rates
improved further in the second quarter, but the
growth contribution was, as expected, lower than in
previous quarters due to a higher comparison base.
This impacted food services positively, which
showed growth rates of more than 20%. Portfolio
revenue continued the strong development and
grew organically by 12.2%.
In the second quarter, the contribution from net new
contract wins was slightly positive with around 0.5%-
points, as the positive effect from contracts won
during the last quarters more than offset the exit of
the Danish Defence contract in 2022.
Revenue from projects and above-base work grew
organically by 2% and thereby contributed with
around 0.5%-points to organic growth. Traditional
projects and above-base work more than offset the
decline in Covid-19 related services.
All regions reported positive organic growth and
continued the strong development from previous
quarters. Growth was most significant in Americas
and Central & Southern Europe with organic growth
of 18% and 15% respectively. Price increases, higher
activity levels in the customer portfolio and start-up
of new contracts drove the development in
Americas, while Central & Southern Europe
benefitted in particular from price increases, as well
as underlying volume growth and net contract wins
in Turkey. Northern Europe and Asia & Pacific
reported solid organic growth.
1)
The net impac t from hyperinflation restatement in Turkey (IAS 29) was negative with 3.4% on Group- level, that has been inc luded in Currenc y & other adj.
Revenue and growth
DKK million
Q2 2023 Q2 2022
Organic
growth Acq./ div.
Currency &
other adj.
Revenue
Growth
Currency & other adj.
Northern Europe 7,278 7,176 5% (0)% (4)% 1%
Central & Southern Europe 6,323 6,057 15% 1% (12)% 4%
Central & Southern Europe, excl IAS 29 6,794 5,928 15% 1% (1)% 15%
Asia & Pacific 3,548 3,456 8% (0)% (5)% 3%
Americas 2,438 2,058 18% - 0% 18%
Other countries 158 135 23% - (5)% 18%
Corporate / eliminations (14) (14) - - - -
Group
1 )
19,731 18,868 10.4% 0.4 % (6.2)% 4.6%
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
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Commercial development
In the first half of 2023, the commercial momentum
improved further as ISS benefitted from higher
activity level among customers.
The commercial pipeline for integrated facility
services solutions within prioritised segments
continues to be attractive. The investments in the
commercial and operating models are yielding
results, underlined by the win of a new key account
IFS contract with Defra, as well as wins of new
medium sized contracts. The decision process in the
global tenders continues to be longer than pre
Covid-19, as the importance of the workplace has
increased, and it has become an increasingly
strategic decision for customers. ISS maintains
strong pricing discipline in the commercial process.
ISS has successfully extended and expanded several
contracts including the global IFS contract with a
global consultancy company, a pharmaceutical
customer and several local key account customers.
As a result, the customer retention rate improved
further in Q2 to a new historical level of around 95%
(LTM) in line with the mid-term ambition. In general,
the majority of contracts up for renewal are
extended for 2-5 years. Further, a customer
engagement survey in Q2 2023 among key accounts
in Europe confirmed that ISS has a strong portfolio
of satisfied customers, which is essential when
building and expanding long-term partnerships.
The demand for projects and above-base work
continued at a high level and grew organically by 2%
in Q2 2023. The trends from previous quarters
thereby continued with traditional projects and
above-base work offsetting Covid-19 related
services. Revenue from projects and above-base
work accounted for 16% of Group revenue.
Revenue from key account customers continued its
solid development and organic growth was 10%,
driven by increased activity level, investments in the
workplaces and price increases. Key accounts’ share
of Group revenue was 70%.
Major key account d evelopments
1)
Countries Segment Term
Effective
Wins
Healthcare Customer Turkey Healthcare 5 years Q1 2023
Pharmeceutical Customer US & Netherland Pharmaceuticals 5 years Q2 2023
Department for Environment Food and Rural Affairs (Defra) United Kingdom Public Administration 7 years Q2 2024
Ex t ensi ons/ex p a n sion s
Healthcare Customer Global Healthcare 5 years Q1 2023
Mining Service Customer Australia Energy & Resources 4 years Q1 2023
Information and Communication Customer United Kingdom Information and communication 4 years Q3 2023
Healthcare Customer United Kingdom Healthcare 3 years Q4 2022
Banking Customer United Kingdom Business Services & IT 3 years Q1 2023
Pharmaceutical Customer Swtizerland & Austria Pharmaceuticals 5 years Q1 2023
Deutsche Bank Italy Business Services & IT 3 years Q1 2024
Hospital Authority Hong Kong Healthcare 3 years Q3 2023
Banking Customer Nordics Business Services & IT 1 year Q4 2023
Ex i ts/l osses
Healthcare Customer United Kingdom Healthcare Q2 2023
Manufacturing Customer US Industry & Manufacturing Q3 2023
1)
Annual revenue above DKK 100 million.
Company announcement no. 20/2023
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ISS A/S – Interim Report for 1 January – 30 June 2023
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Free cash flow
Free cash flow in H1 2023 was DKK (1,074) million
(H1 2022: DKK 644 million), a reduction of DKK 1,718
million compared to the same period last year. Free
cash flow in H1 2023 was, as expected, negatively
impacted by changes in working capital as the high
growth tied funds in receivables. This was partly
offset by improved operating profit before other
items.
Cash flow from operating activities in H1 2023
amounted to DKK (322) million (H1 2022: DKK 1,354
million), a decrease of DKK 1,676 million due to
negative contribution from changes in working
capital partly offset by improved operating profit
before other items.
Changes in working capital in H1 2023 was DKK
(1,620) million (H1 2022: DKK 283 million) mainly due
to an increase in receivables of DKK 1,778 million
following the high growth and reversal of customer
prepayments of DKK 200 million received end of
2022, partly offset by a slight increase in payables.
Utilisation of factoring increased slightly to DKK 1.4
billion on 30 June 2023 compared to DKK 1.3 billion
on 31 December 2022. The development was in line
with higher revenue from key account customers,
where invoices are eligible for factoring, as per the
factoring policy.
Cash flow from investing activities in H1 2023
amounted to DKK (277) million (H1 2022: DKK 196
million), a reduction of DKK 473 million, primarily due
to lower cash inflow from divestments compared to
the same period last year.
Divestment of businesses amounted to DKK 59
million (H1 2022: DKK 599 million), driven by the
divestment of Brunei and non-core business units in
Singapore. Investments in intangible assets and
property, plant and equipment, net, was DKK 364
million (H1 2022: DKK 390 million), which
represented 0.9% of Group revenue (H1 2022: 1.1%)
and reflected continued strict investment discipline.
Cash flow from financing activities in H1 2023
amounted to DKK (688) million (H1 2022: DKK (568)
million), a decrease of DKK 120 million, primarily
related to dividends paid to shareholders.
Capital structure
In line with ISS’s capital allocation policy, a key
objective is to maintain an investment grade rating
as it is important from both a financial and
commercial perspective. To adhere to the
investment grade rating, ISS targets a net debt to
pro-forma adjusted EBITDA (LTM) of 2.0x-2.5x.
As of 30 June 2023, net debt was DKK 13.0 billion, an
increase of DKK 1.5 billion compared to 31
December 2022. The increase was driven by
negative free cash flow in H1 2023, and dividends
paid to shareholders. Despite EBITDA growth, the
higher net debt resulted in an increase in financial
leverage to 2.9x as of 30 June 2023 based on pro
forma EBITDA (LTM) compared to 2.6x at year-end
2022.
Equity
As of 30 June 2023, equity was DKK 9,456 million,
equivalent to an equity ratio of 21.0% (31 December
2022: 23.0%). The decline from year-end 2022 was
mainly a result of Net profit of DKK (555) million,
currency adjustments relating to investments in
foreign subsidiaries of DKK (439) million, actuarial
losses, net of DKK (82) million and dividends paid to
shareholders of DKK 390 million. This was partially
offset by hyperinflation (IAS 29) restatement of
equity in Turkey as of 1 January 2023 of DKK 164
million.
Management changes
On 16 March 2023, Group CEO Jacob Aarup-
Andersen submitted his resignation to the Board of
Directors. Jacob Aarup-Andersen will stay with ISS
until 31 August 2023.
On 13 April 2023 at the Annual General Meeting,
Gloria Diana Glang and Reshma Ramachandran
were elected as new members of the Board of
Directors. Cynthia Mary Trudell did not seek re-
election.
On 29 June 2023, ISS announced the appointment of
Kasper Fangel as the new Group CEO, effective 1
September 2023.
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
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Subsequent events
Acquisitions
On 11 July 2023, ISS signed an agreement to acquire
100% of the shares in Grupo Fissa in Spain. Closing
is expected in Q3 2023.
The acquisition will strengthen our market position
in Spain and enable ISS to expand and develop its
cleaning service offering to public sector customers,
predominantly in Southern Spain.
The acquisition will add annual revenue of DKK 721
million, representing around 1% of Group revenue
(estimated based on unaudited financial
information), and more than 4,500 employees.
Intention to divest the French business with the
exception of Global Key Account customers
Today, ISS announced its intention to divest its
French business with the exception of Global Key
Account customers that would become the exclusive
focus going forward.
Historically, financial results in France have not been
satisfactory and have been dilutive to Group
operating margins and growth. Furthermore, the
development in France has not generated the
expected financial improvements due to inherent
strategic challenges, difficult market conditions, and
continued muted commercial development. During
the past several years, ISS has worked towards
restructuring the business and establishing a solid
foundation in the French market. However, building
a long-term, sustainable business with a
strengthened market position in France will require
further significant investments and management
attention. ISS therefore intends to strategically
reposition itself in the French market to focus on
servicing its Global Key Account customers and
intends to divest its other activities.
As a consequence, as of today, ISS France, excluding
Global Key Accounts, will be classified as held for sale
and discontinued operations in accordance with
IFRS. Consequently, for 2023 the results of ISS
France will be presented in “Net profit from
discontinued operations” in the statement of profit
or loss, and comparative figures for 2022 will be
restated accordingly. In the statement of financial
position, assets and liabilities of ISS France will be
reclassified to a single asset and liability line,
respectively, with no restatement of comparative
figures. The statement of cash flows will be
unchanged.
Classification as held for sale as of today did not
result in impairment losses in addition to the total
impairment losses of DKK 1,257 million recognised -
in the Group’s statement of profit or loss as per 30
June 2023.
Expected impact on selected reported numbers
The expected impact on profit or loss of
reclassification of ISS France, excluding Global Key
Accounts, to discontinued operations is summarised
below. As a result of the reclassification, operating
margin (before other items), excl. IAS 29, is expected
to improve 0.3%-points to 3.6% for the first six
months of 2023.
Other than as set out above or elsewhere in this
Interim report, we are not aware of events
subsequent to 30 June 2023, which are expected to
have a material impact on the Group’s financial
position.
Ex pected i mp act on profi t or l oss of recl assifi cation
(DKKm)
YTD 2023
(rep ort ed)
ISS France
(estimated
effect of
reclass.)
YTD 2023
(ad j ust ed)
YTD 2022
(rep ort ed)
ISS France
(esti mated
effect of
reclass.)
YTD 2022
(ad j ust ed)
Revenue 39,661 (1,331) 38,330 36,943 (1,370) 35,573
Expenses (38,411) 1,422 (36,989) (35,882) 1,409 (34,473)
Operati n g profit before other i tems 1,250 91 1,341 1,061 39 1,100
Other income and expenses, net (317) 321 4 180 - 180
Goodwill impairment (937) 937 - - - -
Amortisation/impairment of brands and customer contracts (32) - (32) (35) - (35)
Operati n g profit (36) 1,349 1,313 1,206 39 1,245
Financial expenses, net (318) 6 (312) (157) 2 (155)
Profit before tax (354) 1,355 1,001 1,049 41 1,090
Income taxes (235) 25 (210) (252) 7 (245)
Profit from con tin u in g operations (589) 1,380 791 797 48 845
Profit from discontinued operations 34 (1,380) (1,346) 122 (48) 74
Net profit (555) - (555) 919 - 919
Organic growth, % 10.9% 11.4% 6.7% 7.3%
Operating margin (before other items), % 3.2% 3.5% 2.9% 3.1%
Operating margin (before other items), %, excl. IAS 29 3.3% 3.6% 2.9% 3.1%
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
10 of 35
Regional Performance
Northern Europe
Revenue amounted
to DKK 14,428
million in the first
six months of 2023,
which was an
increase of 2%
compared with the
same period last
year. Organic
growth was 6% (H1
2022: 5%). The
effect from acquisitions and divestments, net was
neutral, while currency effects impacted growth
negatively by 4%.
Organic growth was mainly driven by underlying
volume growth from increased activity level and
price increases. Portfolio revenue grew by around
7%, while revenue from projects and above-base
work declined slightly. Revenue from food services
continued the positive development and
contributed positively to the organic growth.
Sweden and Benelux reported the strongest growth
due to increased activity level among key account
customers and implemented price increases.
Organic growth in Denmark was negative due to the
deliberate exit of the contract with the Danish
Defence in May 2022. The UK reported positive
organic growth due to price increases, underlying
volume growth and start-up of new contracts
resulting in portfolio revenue growth, partly offset by
decline in revenue from projects and above-base
work.
Operating profit before other items amounted to
DKK 626 million in H1 2023 (H1 2022: DKK 631
million) corresponding to an operating margin of
4.3% (H1 2022: 4.4%). Underlying improvements
were achieved across the region, driven by
continued positive operational development in the
UK, OneISS efficiencies and cost initiatives and
operating leverage. This was, however offset by a
lower contribution of margin enhancing projects
and above-base work and reduced overhead costs
absorption from lower revenue in Denmark.
Q2 2023 revenue amounted to DKK 7,278 million
driven by organic growth of 5% (Q1 2023: 6%), while
acquisitions and divestments, net, were neutral and
currency effects reduced revenue by 4%. Organic
growth was driven by underlying volume growth and
price increases implemented across the region.
Portfolio revenue grew organically by 6%, while
revenue from projects and above-base work was flat.
Several countries reported double-digit organic
growth with the strongest growth seen in Sweden
and Benelux. The UK reported positive organic
growth driven by portfolio revenue, while organic
growth in Denmark was negative, as the contract
with the Danish Defence was exited by the end of
May 2022.
Central & Southern Europe
Revenue amounted
to DKK 13,144
million in the first
six months of 2023,
which was an
increase of 11%
compared with the
same period last
year. Organic
growth was 16% (H1 2022: 5%) and the effect from
acquisitions and divestments, net increased revenue
of 2% related to the acquisition of Livit FM in
Switzerland. Currency effects impacted growth
negatively by 2%, while the net impact from
hyperinflation restatement in Turkey (IAS 29) was
negative with 5%.
The organic growth was primarily driven by Turkey
where price increases were successfully passed on
to customers to offset cost inflation, as well as
underlying volume growth and net contract wins in
the healthcare segment. Portfolio revenue in the
region grew double digit driven by price increases
and underlying volume growth due to the increased
activity level. In France, however, organic growth was
negative.
Operating profit before other items excluding IAS 29
amounted to DKK 538 million in H1 2023 (H1 2022:
DKK 378 million) corresponding to an operating
margin of 4.0% (H1 2022: 3.2%). The positive margin
development was primarily due to the continued
improved profitability on the Deutsche Telekom
contract. In addition, across the region, countries
improved margin as a result of OneISS efficiencies
and cost initiatives and operating leverage from
higher revenue. This was, however, partly offset by
France where the development continued to be
challenging and the margin did not develop as
expected. Including the effect of IAS 29, operating
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
11 of 35
profit before other items amounted to DKK 482
million, corresponding to a margin of 3.7% (H1 2022:
3.1%).
Q2 2023 revenue amounted to DKK 6,323 million
driven by organic growth of 15% (Q1 2023: 17%), and
acquisitions and divestments, net which increased
revenue by 1%. Currency effects reduced revenue
with 2%, while the net impact from hyperinflation
restatement in Turkey (IAS 29) was negative with
10%. Organic growth was predominately driven by
implemented price increases, underlying volume
growth and net new contract wins in Turkey. Organic
growth for portfolio revenue was double digit, driven
by price increases and underlying volume growth
across the region.
Asia & Pacific
Revenue amounted to DKK 7,037 million in the first
six months of 2023, which was an increase of 4%
compared to the same period last year. Organic
growth was 7% (H1
2022: 3%). The
effect from
acquisitions and
divestments, net
was neutral, while
currency effects
impacted revenue
negatively by 3%.
Organic growth was
driven by underlying volume growth from increased
activity level and price increases implemented across
the region resulting in double digit organic growth
in portfolio revenue. Price increases, however,
contributed less to growth compared to other
regions due lower cost inflation. The strongest
growth was seen in India and Australia driven by
generally increased customer activity level. Revenue
from projects and above-base work declined
organically by double digits due to reduced demand
for Covid-19 related services in Hong Kong and
China as restrictions were lifted in January 2023.
Operating profit before other items amounted to
DKK 414 million in H1 2023 (H1 2022: DKK 388
million) corresponding to an operating margin of
5.9% (H1 2022: 5.8%). The development reflected
solid OneISS efficiency execution and cost discipline
despite lower demand for margin enhancing Covid-
19 related services.
Q2 2023 revenue amounted to DKK 3,548 million
driven by organic growth of 8% (Q1 2023: 6%), while
acquisitions and divestments, net were neutral and
currency effects reduced revenue by 5%. Organic
growth was driven by underlying volume growth
across the region supported by start-up of contracts
in Indonesia. Projects and above-base revenue
declined due to reduced demand for Covid-19
related services.
Americas
Revenue amounted
to DKK 4,773
million in the first
six months of 2023,
which was an
increase of 23%
compared to the
same period last
year. Organic
growth was 20%
(H1 2022: 29%). The
effect from
acquisitions and
divestments, net
was neutral, while
currency effects impacted revenue positively by 3%.
The strong organic growth in the Americas
continued, despite a tougher comparison base.
Growth was driven by underlying volume growth,
price increases and net new contract wins. The
underlying volume growth was a result of increased
activity level and higher office occupancy rates. This
particularly benefitted food services, which reported
growth of more than 30%. Further, the contract with
a global retailer had full revenue impact in the first
six months of 2023 contributing positively to organic
growth. Price increases were implemented to offset
cost inflation across the region and thereby had a
positive contribution to organic growth. All countries
in the region reported double digit organic growth,
with the highest growth rates seen in the US and
Mexico.
Operating profit before other items amounted to
DKK 189 million in H1 2023 (H1 2021: DKK 137
million) corresponding to an operating margin of
4.0% (H1 2022: 3.5%). The positive development was
a result of OneISS efficiencies and cost initiatives, as
well as operating leverage from increased revenue
across the region. The continued strong organic
growth within food service delivered an unchanged
margin compared to last year, as contracts are on
cost plus commercial models.
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
12 of 35
Q2 2023 revenue amounted to DKK 2,438 million
driven by organic growth of 18% (Q1 2023: 22%),
while acquisitions and divestments, net and
currencies effects were neutral. Organic growth was
driven by underlying volume growth particularly
affecting food services positively and price increases.
Net new contract wins had a positive contribution to
organic growth mainly as the contract with the
global retailer mobilised during H2 2022 and had full
revenue effect in the quarter.
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
13 of 35
Outlook
Outlook 2023
This section should be read in conjunction with
“Forward-looking statements” as shown in the table
on page 14.
In the first half of 2023, the organic growth was
strong mainly driven by price increases being
implemented across the Group and underlying
volume growth due to increased activity levels.
Operating margin developed largely according to
plan, while the strong organic growth, as expected,
temporarily had a negative effect on free cash flow.
The outlook for 2023 assumes continued high
macroeconomic and geopolitical uncertainty. ISS
has robust operating processes and is well
positioned to operate in this environment. The
execution of the OneISS strategy will continue and
enhance the operating model, strengthen
competitiveness, and increase focus on growth
initiatives. France, excluding Global Key Accounts,
will be classified as held for sale and discontinued
operations. The outlook for organic growth and
operating margin excludes any contribution from
discontinued operations. For all financial KPIs, the
outlook is excluding any effects of hyperinflation (IAS
29).
Organic growth is now expected to be 7 – 9%
compared to previously “6 - 8%” (2022 excl. France:
8.4%), as a result of expected higher customer
activity and thereby higher underlying volume
growth. The annualisation of the return-to-office
trend, contract expansions and continued customer
investments in workplaces and services are
expected to drive volume growth. The expectation of
a positive effect from price increases implemented
across the business is unchanged as well as a slight
positive contribution from net contract wins.
Revenue from projects and above-base work is still
expected to have a slight negative impact on organic
growth.
Operating margin is still expected to be 4.25 – 4.75%
(2022 excl. France: 4.0%). The year-on-year increase
is still expected to be mainly driven by continued
improvement on the two previous hotspots; the UK
and the Deutsche Telekom contract, positive impacts
from OneISS efficiencies and cost initiatives, as well
as operating leverage from higher revenue.
Free cash flow is still expected to be around DKK 2.0
billion (2022: DKK 1.7 billion). The increase from
2022 will be driven by the expected higher operating
profit before other items and the absence of
payments related to restructuring projects initiated
in 2020. Changes in working capital are expected to
be negative because of revenue growth and
customer prepayments made in 2022, while capital
expenditures are expected in line with depreciation
and amortisation.
As a consequence of the high organic growth in H1
2023, receivables increased accordingly. As
expected, changes in working capital and free cash
flow were therefore negative in the first half of the
year. As growth rates are expected to normalise in
H2 2023, this effect will reverse, and the outlook for
the full year is confirmed.
Financial targets
At the Capital Markets Day in November 2022, new
financial targets were announced for organic
growth, operating margin and cash conversion.
From 2024 and beyond, ISS targets to deliver strong
growth at attractive and sustainable margins:
Organic growth of 4 – 6%
Operating margin above 5%
Cash conversion above 60%
Outlook 2023
Annual Report
2022
Trading update
Q1 2023
Interim report
H1 2023
Organic growth 4 - 6% 6 - 8% 7 - 9%
Operating margin* 4.25 - 4.75% 4.25 - 4.75% 4.25 - 4.75%
Free cash flow ~ DKK 2bn ~ DKK 2bn ~ DKK 2bn
* Based on operating profit before other items
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
14 of 35
Expected revenue impact from
divestments, acquisitions and foreign
exchange rates in 2023
Acquisitions and divestments completed by 31 July
2023 (including in 2022) are expected to have a
positive impact on revenue growth in 2023 of
around 0.5%-point.
Based on the current exchange rates, a negative
impact on revenue growth of 3-4%-points
1)
is
expected in 2023 from the development of foreign
exchange rates, excluding any effects of
hyperinflation (IAS 29).
1)
The forecasted average exchange rates for the financial year 2023
are calculated using the realised average exchange rates for the
first seven month of 2023 and the average forward exchange rates
(as of 1 August 2023) for the remaining five months of 2023.
Forward- l ooki n g statements
This report contains fo rward-looking statements, including, but no t
limited to, the guidance and expectations in Outlook. Statements herein,
other than statements of histo rical fact, regarding future event or
prospects, are fo rward-lo o king statements. The words may, will, should,
expect, anticipate, believe, estimate, plan, predict, intend or variatio ns of
such wo rds, and other statements on matters that are not histo rical fact
or regarding future events or pro spects, are fo rward-looking statements.
ISS has based these statements o n its current views with respect to
future events and financial performance. These views invo lve risks and
uncertainties that co uld cause actual results to differ materially fro m
those predicted in the fo rward-lo o king statements and fro m the past
perfo rmance of ISS.
Although ISS believes that the estimates and pro jectio ns reflected in the
forward-looking statements are reaso nable, they may prove materially
incorrect, and actual results may materially differ, e.g. as the result of
risks related to the facility service industry in general or ISS in particular
including those described in this repo rt and other info rmatio n made
available by ISS. A s a result, yo u should no t rely on these fo rward-
looking statements. ISS undertakes no obligation to update or revise
any fo rward-loo king statements, whether as a result of new info rmatio n,
future events o r otherwise, expect to the extent required by law.
The A nnual Report o f 2022 of ISS A /S is available at the Group's
website, www.issworld.co m.
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
15 of 35
Management statement
Copenhagen, 9 August 2023
The Board of Directors and the Executive Group
Management Board have today discussed and
approved the interim report of ISS A/S for the period
1 January – 30 June 2023.
The condensed consolidated interim financial
statements have been prepared in accordance with
IAS 34 “Interim Financial Reporting” as adopted by
the EU and additional requirements of the Danish
Financial Statements Act. The interim report has not
been reviewed or audited.
In our opinion, the condensed consolidated interim
financial statements give a true and fair view of the
Group's assets, liabilities and financial position at 30
June 2023 and of the results of the Group's
operations and consolidated cash flows for the
financial period 1 January – 30 June 2023.
In our opinion, the Management review includes a
fair review of the development in the Group’s
operations and financial conditions, the results for
the period, cash flows and financial position as well
as a description of the most significant risks and
uncertainty factors that the Group face.
Executive Group Management Board
Jacob Aarup-Andersen Kasper Fangel
Group CEO Group CFO
Board of Directors
Niels Smedegaard Lars Petersson
Chair Deputy Chair
Kelly Kuhn Ben Stevens
Søren Thorup Sørensen Gloria Diana Glang
Reshma Ramachandran Nada Elboayadi (E)
Signe Adamsen (E) Kadir Ünver (E)
E = Employee representative
Company announcement no. 20/2023
Copenhagen, 9 August 2023
Primary financial statements
Statement of profit or loss 17
Statement of comprehensive income 18
Statement of cash flows 19
Statement of financial position 20
Statement of changes in equity 21
Basis of preparation
1 Basis of preparation 22
2 Significant accounting estimates and judgements 22
Statement of profit or loss
3 Segments 23
4 Revenue 24
5 Share-based payments 24
6 Other income and expenses, net 25
7 Impairment tests 26
8 Financial income and expenses 27
9 Divestments, assets held for sale and discontinued operations 28
Statement of cash flows
10 Changes in working capital 30
11 Free cash flow 30
Statement of financial position
12 Pensions and similar obligations 31
13 Provisions 31
Other
14 Hyperinflation in Turkey 32
15 Subsequent events 33
Condensed
consolidated
interim financial
statements
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
16 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
Statement of profit or loss
1 January – 30 June
(DKKm)
YTD 2023
YTD 2022
Revenue
3, 4, 14
Employee costs
5
(25,622 ) (23,890 )
Consumables (3,575 ) (3,008 )
Other operating expenses (8,497 ) (8,204 )
Depreciation and amortisation (717 ) (780 )
Operating profit before other items
14
Other income and expenses, net
6
(317 ) 180
Goodwill impairment
7
(937 ) -
Amortisation/impairment of brands and customer contracts (32 ) (35 )
Operating profit
3, 14
(36 )
Financial income
8
Financial expenses
8
(398 ) (292 )
Profit before tax
(354 )
Income tax
(235 )
(252 )
Net profit from continuing operations (589 ) 797
Net profit from discontinued operations
9
Net profit
14
(555 )
Attributable to:
Owners of ISS A/S (582 ) 883
Non-controlling interests 27 36
Net profit (555 ) 919
Earnings per share, DKK
Basic earnings per share (EPS) (3.1 ) 4.8
Diluted earnings per share (3.1 ) 4.8
Earnings per share for continuing operations, DKK
Basic earnings per share (EPS) (3.3 ) 4.1
Diluted earnings per share (3.3 ) 4.1
Note
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
17 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
1 January – 30 June
(DKKm)
Note
YTD 2023
YTD 2022
1
Net profit
(555 )
Items that will not be reclassified to profit or loss:
Remeasurement gain/(loss), defined benefit plans
12
(86 ) 365
Asset ceiling, defined benefit plans
12
(18 ) (210 )
Tax 22 (40 )
Items that may be reclassified to profit or loss:
Foreign exchange adjustments of foreign entities (439 ) 252
Fair value adjustments of net investment hedges (22 ) (84 )
Recycling of accumulated foreign exchange adjustments on country exits (18 ) (33 )
Hyperinflation restatement of equity at 1 January
14
Tax 5 18
Other comprehensive income
(392 )
Comprehensive income
(947 )
Attributable to:
Owners of ISS A/S (867 ) 1,563
Non-controlling interests (80 ) 392
Comprehensive income
(947 )
Statement of comprehensive income
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
18 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
Statement of cash flows
1 January – 30 June
(DKKm) Note YTD 2023 YTD 2022
Operating profit before other items
Operating profit before other items from discontinued operations
9
Depreciation and amortisation
Non-cash items related to hyperinflation
14
(12 )
(21 )
Share-based payments
5
Changes in working capital
10
(1,620 )
Changes in provisions, pensions and similar obligations
(251 )
(436 )
Other expenses paid
(9 )
(3 )
Interest received
Interest paid
(204 )
(167 )
Income tax paid
(269 )
(233 )
Cash flow from operating activities
14
(322 )
Acquisition of businesses
(24 )
Divestment of businesses
9
Acquisition of intangible assets and property, plant and equipment
(364 )
(390 )
Disposal of intangible assets and property, plant and equipment 9 21
Acquisition of financial assets, net
(10 )
Cash flow from investing activities
14
(277 )
Repayment of lease liabilities (423 ) (434 )
Other financial payments, net 125 (128 )
Transactions with non-controlling interest
(6 )
Dividends paid to shareholders (390 )
Cash flow from financing activities
14
(688 )
(568 )
Total cash flow
(1,287 )
Cash and cash equivalents at 1 January
Total cash flow (1,287 ) 982
Foreign exchange adjustments (227 ) 96
Cash and cash equivalents at 30 June
Free cash flow
11, 14
(1,074 )
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
19 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
Statement of financial position
30 June 30 June 31 December
(DKKm) Note 2023 2022 2022
Assets
Intangible assets
14
Right-of-use assets
14
Property, plant and equipment
14
Deferred tax assets 895 936 912
Other financial assets 412 508 512
Non-current assets 26,870 28,397 28,664
Inventories 244 200 231
Trade receivables 12,142 11,068 10,996
Tax receivables 161 142 173
Other receivables 2,015 1,875 1,695
Cash and cash equivalents 3,700 4,506 5,214
Assets held for sale
9
13
Current assets
Total assets 45,132 46,220 47,005
Equity and liabilities
Equity attributable to owners of ISS A/S
Non-controlling interests
Total equity 14 9,456 9,840 10,815
Loans and borrowings 15,885 15,959 15,945
Pensions and similar obligations
12
Deferred tax liabilities
14
Provisions
13
Non-current liabilities 18,704 18,914 18,773
Loans and borrowings 907 853 963
Trade and other payables 6,711 6,827 6,952
Tax payables 102 133 172
Other liabilities 8,812 8,941 8,714
Provisions
13
Liabilities held for sale
9
Current liabilities 16,972 17,466 17,417
Total liabilities 35,676 36,380 36,190
Total equity and liabilities 45,132 46,220 47,005
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
20 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
Statement of changes in equity
1 January – 30 June
(DKKm)
Note
Share
capital
Treasury
shares
Retained
earnings
Proposed
dividends
Trans-
lation
reserve
Total
Non-con-
trolling
interests
Total
equity
2023
Equity at 1 January
(185 )
(1,154 )
Net profit - - (582 ) - - (582 ) 27 (555 )
Other comprehensive income - - (2 ) - (283 ) (285 ) (107 ) (392 )
Comprehensive income - - (584 ) - (283 ) (867 ) (80 ) (947 )
Dividends paid to shareholders - - - (390 ) - (390 ) - (390 )
Share-based payments 5 - - 35 - - 35 - 35
Settlement of vested PSUs - 119 (119 ) - - - - -
Transactions with non-controlling interests - - - - - - (57 ) (57 )
?
Transactions with owners - 119 (84 ) (390 ) - (355 ) (57 ) (412 )
Changes in equity - 119 (668 ) (390 ) (283 ) (1,222 ) (137 ) (1,359 )
Equity at 30 June 185 (66 ) 10,252 - (1,437 ) 8,934 522 9,456
2022
Equity at 1 January
Net profit - - 883 - - 883 36 919
Other comprehensive income - - 115 - 565 680 356 1,036
Comprehensive income - - 998 - 565 1,563 392 1,955
Share-based payments - - 44 - - 44 - 44
Transactions with non-controlling interests - - (5 ) - - (5 ) 57 52
-
Transactions with owners - - 39 - - 39 57 96
Changes in equity - - 1,037 - 565 1,602 449 2,051
Equity at 30 June 185 (191 ) 10,072 - (881 ) 9,185 655 9,840
Attributable to owners of ISS A/S
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
21 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
1 Basis of preparation
New accounting regulation
2 Significant accounting estimates and judgements
The condensed consolidated interim financial statements of ISS A/S for the period 1 January - 30 June 2023 comprise ISS A/S and
its subsidiaries (collectively, the Group) and have been prepared in accordance with IAS 34 "Interim Financial Reporting" as
adopted by the EU and additional requirements of the Danish Financial Statements Act.
The accounting policies applied are consistent with those applied in the preparation of the Group’s consolidated financial
statements for the year ended 31 December 2022, except for the adoption of a number of new and amended standards, which
became applicable for the current reporting period. None of these amendments have had a material impact on the Group's
financial statements, including notes.
The preparation of condensed consolidated interim financial statements requires management to make estimates, judgements
and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual
results may differ from these estimates.
Except for the judgements and estimates commented upon in other notes of these condensed consolidated interim financial
statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended
31 December 2022, cf. Estimate and judgements on p. 55 in the consolidated financial statements for 2022.
The report does not include all the information and note disclosures required in the annual consolidated financial statements, and
should be read in conjunction with the Group’s consolidated financial statements as at 31 December 2022.
The IASB has issued a number of new standards and amendments not yet in effect or endorsed by the EU at the reporting date
and therefore not implemented in this H1 2023 interim report.
None of these are currently expected to have a material impact on the Group’s financial statements, including notes, when
implemented.
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
22 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
3 Segments
(DKKm)
Northern
Europe
Central &
Southern
Europe
Asia &
Pacific Americas
Other
countries
Total
segments
YTD 2023
Revenue, excl. IAS 29 14,428 13,594 7,037 4,773 303 40,135
Revenue
1)
14,428 13,144 7,037 4,773 303 39,685
Operating profit before other items, excl. IAS 29
626 538 414 189 11 1,778
Operating profit before other items
626 482 414 189 11 1,722
Operating profit 619 (801) 427 180 11 436
YTD 2022
Revenue, excl. IAS 29 14,214 11,743 6,735 3,873 275 36,840
Revenue
1)
14,214 11,871 6,735 3,873 275 36,968
Operating profit before other items, excl. IAS 29
631 378 388 137 11 1,545
Operating profit before other items
631 366 388 137 11 1,533
Operating profit 659 355 536 117 11 1,678
Reconciliation of operating profit
(DKKm)
YTD 2023
YTD 2022
Operating profit for reportable segments 436 1,678
Unallocated corporate costs (472) (472)
Operating profit (36) 1,206
ISS is a leading, global provider of workplace and facility service solutions operating in 30+ countries. Operations are generally
managed based on a geographical structure in which countries are grouped into regions.
The regions have been identified based on a key principle of grouping countries that share market conditions and cultures.
Countries where we do not have a full country-based support structure, which are managed by our Global Key Account
organisation, are combined in a separate segment “Other countries”.
1) Including internal revenue which due to the nature of the business is insignificant and therefore not disclosed.
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
23 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
4 Revenue
(DKKm)
YTD 2023
YTD 2022
Customer category
Key accounts
28,019
26,381
Large and medium
9,381
8,394
Small and route-based
2,261
2,168
Total
39,661
36,943
Customer segments
Office-based
15,640
14,883
Production-based
9,730
8,642
Healthcare
5,106
4,868
Other
9,185
8,550
Total
39,661
36,943
Core services
Cleaning
17,126
17,104
Technical
8,970
8,036
Food
5,768
4,654
Workplace, including Other
7,797
7,149
Total
39,661
36,943
5 Share-based payments
Long-Term Incentive Programme (LTIP)
LTIP 2023
PSUs and participants (number)
Maximum PSUs at initial grant date
1,148,075
Total PSUs granted 917,010
Participants 149
Fair value (DKKm)
Fair value of PSUs at initial grant date 109
Vested programmes
In March 2023, the LTIP 2020 programme vested. Based on the annual EPS and TSR performance for 2020, 2021 and 2022, 32% of
the granted PSUs vested. After this vesting, no further PSUs are outstanding under the LTIP 2020, and the programme has lapsed.
In March 2023 a new annual LTIP programme (LTIP 2023) was established, and a total of 917,010 new performance-based share
units (PSUs) were granted to members of the EGM (EGMB and Corporate Senior Officers of the Group) and other senior officers of
the Group. The Group's LTIP programme is described in note 6.2 in the consolidated financial statements for 2022. Like previous
grants under the LTIP, the PSUs will vest on the date of the third anniversary of the grant, subject to achievement of certain
performance targets and service criteria. Upon vesting, each PSU entitles the holder to receive one share at no cost.
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
24 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
6 Other income and expenses, net
(DKKm)
YTD 2023
YTD 2022
Gain on divestments 14 181
Other income
14
181
Loss on divestments (5) -
Integration costs (6) (1)
Impairment loss, ISS France (320) -
-
Other expenses (331) (1)
Other income and expenses, net (317) 180
Loss on divestments mainly related to the divestment of the security business in Spain.
Integration costs related to the acquisition of Livit FM Services AG in Switzerland in 2022.
Impairment loss, ISS France related to impairment of software, right-of-use assets and property, plant and equipment (non-
monetary assets) identified in the impairment test performed at 30 June 2023. cf. Note 7, Impairment tests.
Gain on divestments related to the divestment of the Landscaping business and Sanitation Services in Singapore. In 2022, the
gain mainly related to the divestment of Waste Management in Hong Kong and the damage control business in the UK.
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
25 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
7 Impairment tests
Goodwill
Carrying
amount
(DKKm)
Applied
avg.
rate
Allowed
decrease
Applied
avg.
rate
Allowed
decrease
Applied
avg.
rate
Allowed
decrease
Applied
avg.
rate
Allowed
decrease
Applied
avg.
rate
Allowed
increase
30 June 2023
-
0.3%
0.0%
(2.9)%
0.0%
2.0%
0.0%
0.0%
0.0%
9.9%
0.0%
31 Dec 2022
936
1.8%
1.8%
0.2%
1.2%
2.5%
0.7%
5.0%
0.4%
9.4%
0.6%
1)
Excl. allocated corporate costs
Forecasting period Terminal period
Discount rate,
net of tax
Growth
Margin
1)
Growth
Subsequently, on 9 August 2023 ISS announced its intention to divest ISS France resulting in classification as held for sale and
discontinued operations as of this date. The changed classification did not result in additional impairment losses.
The Group performs impairment tests on intangibles, i.e. goodwill, brands and customer contracts, annually and whenever there
is an indication that intangibles may be impaired. The annual impairment test is performed as per 31 December based on financial
budgets approved by management covering the following financial year.
At 30 June 2023, the Group performed a review for indications of impairment of the carrying amount of intangibles. Except for
France, it is management’s opinion, based on the review performed, that excess values are fairly resilient to any likely and
reasonable deteriorations in the key assumptions applied and presented in note 3.2 in the consolidated financial statements for
2022.
Impairment test results 30 June 2023
Margin
1)
Applied assumptions, sensitivities and carrying amounts for France are illustrated below.
France The impairment test for France resulted in recognition of an impairment loss of DKK 1,257 million of which DKK 937 million
related to goodwill and DKK 320 million related to software, right-of-use assets and property, plant and equipment (non-monetary
assets). In determining the impairment losses, management has assessed that fair value less cost to sell does not exceed the
calculated value in use.
During the first six months of 2023, the country leadership team has worked diligently on implementing the updated business
improvement plan from December 2022. Management is still committed to implement the improvement initiatives. However, it
has in evaluating H1 2023 operational performance and the status of the business become clear that significant profitability
improvements cannot currently be achieved on a stand-alone basis without further restructurings and additional investments.
Accordingly, management has lowered its expectations in the forecasting period to an average growth of 0.3% (previously 1.8%)
and an average operating margin of (2.9)% (previously (0.2)%). Furthermore, management expects that the terminal margin will
only be able to reach break-even level (previously 5.0%). These expectations are not reflecting any cost of potential significant
transformative restructurings and investments nor any effect thereof.
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
26 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
8 Financial income and expenses
(DKKm) YTD 2023 YTD 2022
Interest income on cash and cash equivalents 40 33
Monetary gain on hyperinflation restatement 40 102
Financial income 80 135
Interest expenses on loans and borrowings
1)
(152 ) (147)
Interest expenses on lease liabilities
1)
(55) (34)
Bank fees (32) (25)
Amortisation of financing fees (non-cash)
1)
(18) (11)
Net interest on defined benefit obligations (10) (11)
Foreign exchange losses (86) (28)
Other (45) (36)
Financial expenses (398) (292)
1)
Measurement basis amortised cost.
Monetary gain on hyperinflation restatement related to restatement of non-monetary items of the financial position and offsetting
of the inflation restatement of profit or loss items, cf. note 14, Hyperinflation in Turkey. The decrease compared to last year was
mainly driven by a slowdown in the inflation in Turkey during first half of 2023.
Foreign exchange losses mainly related to losses on unhedged TRY and EUR denominated intercompany loans.
Interest expenses on lease liabilities have increased compared to 2022 due to rising interest rates.
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
27 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
9 Divestments, assets held for sale and discontinued operations
Profit or loss effect
Company/activity Country
Service
type Excluded from P/L Interest
Annual
revenue
(DKKm)
Employees
(number)
ISS Brunei Brunei Country exit February 100% 44 539
Security Business Spain Technical April 100% 52 181
Landscaping Singapore Technical July 100% 67 260
Sanitation Services Singapore Technical July 100% 23 26
Total 186 1,006
Divestment impact
(DKKm) YTD 2023 YTD 2022
Goodwill 17 188
Other non-current assets 18 162
Current assets 59 320
Non-current liabilities - (24)
Loans and borrowings (5) (23)
Current liabilities (27) (246)
Net assets disposed 62 377
Gain/(loss) on divestment, net 23 261
Divestment costs 15 46
Consideration received 100 684
Cash in divested businesses (23) (86)
Cash consideration received 77 598
Contingent and deferred consideration (4) 38
Divestment costs paid (14) (37)
Divestment of businesses (cash flow) 59 599
Divestments subsequent to 30 June 2023
The Group completed a minor divestment in Spain in July. The divestment has no material impact.
The Group completed four divestments during 1 January - 30 June 2023 (five during 1 January – 30 June 2022), including the
completion of the divestment of our business in Brunei, which marked the finalisation of the Group’s strategic divestment
programme. Consequently, at 30 June 2023 no businesses were classified as held for sale.
In H1 2023, the Group's divestments resulted in recognition of a net gain of DKK 41 million in profit or loss. The net gain was
recognised in Other income and expenses, net (DKK 9 million (gain)) and Other income and expenses, net in discontinued
operations (DKK 32 million (gain)). Recycling of accumulated foreign exchange adjustments recognised in equity had a positive
impact on the net gain of DKK 18 million related to Brunei.
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
28 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
9 Divestments, assets held for sale and discontinued operations (continued)
Discontinued operations
Statement of profit or loss
(DKKm) YTD 2023 YTD 2022
Revenue 4 363
Expenses (3) (352)
Operating profit before other items 1 11
Other income and expenses, net
1)
32 112
Operating profit 33 123
Financial income/(expenses), net - -
-
Net profit before tax 33 123
Income tax 1 (1)
Net profit from discontinued operations 34 122
Earnings per share, DKK
Basic earnings per share (EPS) 0.2 0.7
Diluted earnings per share 0.2 0.7
Statement of cash flows
(DKKm) YTD 2023 YTD 2022
Operating activities 0 18
Investing activities (14) (69)
Financing activities (20) 9
Discontinued operations
- presented in separate profit or loss line
HY 2023
HY 2022
- Brunei
- Brunei
- Portugal
- Russia
- Taiwan
1)
Related to the net gain from the divestment of Brunei in H1 2023, including recycling of accumulated foreign exchange adjustments from Other comprehensive
income amounting to DKK 18 million (gain) (2022: Gain related to the divestments of Portugal, Russia and Taiwan).
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
29 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
10 Changes in working capital
(DKKm) YTD 2023 YTD 2022
0
0
0
Changes in inventories (25) (24)
Changes in receivables (1,778) (935)
Changes in payables 183 1,242
Total (1,620) 283
11 Free cash flow
(DKKm) YTD 2023 YTD 2022
0
0
0
Cash flow from operating activities (322) 1,354
Acquisition of intangible assets and property, plant and equipment (364) (390)
Disposal of intangible assets and property, plant and equipment 9 21
Acquisition of financial assets, net
1)
9 (49)
Addition of right-of-use assets, net (406) (292)
Total (1,074) 644
The free cash flow measure should not be considered a substitute for those measures required by IFRS and may not be
calculated by other companies in the same manner. As such, reference is made to the IFRS measures included in the
consolidated statement of cash flows on p. 19.
Free cash flow as defined by Management, cf. Definitions on page 106 in the consolidated financial statements for 2022, is
summarised below. Free cash flow is not a financial performance measure defined by IFRS. Accordingly, the measure and its
calculation is presented as it is used by management as an alternative performance measure in managing the business.
1)
Excluding investments in equity-accounted investees of DKK 10 million (2022: DKK 39 million).
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
30 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
12 Pensions and similar obligations
13 Provisions
(DKKm)
Legal claims
and
disputes
Self-
insurance
Restruc-
turings
Onerous
contracts Other YTD 2023 YTD 2022
At 1 January
268
245
71
77
410
1,071
1,716
Foreign exchange adjustments
2
(6)
-
(1)
(0)
(5)
26
Additions
23
109
-
6
1
139
85
Used during the year
(93)
(101)
(52)
(11)
(18)
(275)
(483)
Unused amounts reversed
(41)
(2)
(14)
(5)
(15)
(77)
(45)
Reclass (to)/from other liabilities
38
51
3
(20)
(14)
58
(8)
-
-
At 30 June
197
296
8
46
364
911
1,291
Non-current
43
174
3
1
250
471
591
Current
154
122
5
45
114
440
700
Restructurings Execution of restructuring projects initiated following Covid-19 was completed in H1 2023 and resulted in
payments of DKK 52 million mainly in Germany.
For interim periods, the Group’s defined benefit obligations are based on valuations from external actuaries carried out at
the end of the prior financial year taking into account any subsequent movements in the obligation due to pension costs,
contributions etc. up until the reporting date. For interim periods, actuarial calculations are only updated to the extent that
significant changes in applied assumptions have occurred. Based on an overall analysis carried out by management, it is
determined whether updated actuarial calculations should be obtained for interim periods.
At 30 June 2023, the overall evaluation carried out by management resulted in updated actuarial calculations being obtained
for Switzerland and the UK due to market fluctuations, which had impacted interest rates, inflation rates and asset values.
Furthermore, an updated actuarial calculation has been obtained for Turkey due to legislative changes as well as market
fluctuations. The legislative change in Turkey entails the possibility of early retirement for certain employees resulting in
recognition of an additional cost of DKK 21 million in profit or loss. The updated calculations for Switzerland, the UK and
Turkey led to recognition of an actuarial loss of DKK 99 million and impairment from asset ceiling of DKK 18 million, which
were partially offset by gain on plan assets of DKK 13 million. The net loss of DKK 104 million was recognised in other
comprehensive income with a resulting increase in the group's defined benefit obligations.
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
31 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
14 Hyperinflation in Turkey
(DKKm)
YTD 2023
(excl.
IAS 29)
Non-monetary
items
(in year)
Profit
or loss
Retrans-
lation
(end rates)
Total
adjust-
ments
YTD 2023
(reported)
Profit or loss
Revenue
40,111
-
136
(586)
(450)
39,661
Operating profit before other items
1,306
(22)
12
(46)
(56)
1,250
Operating profit
10
(27)
12
(31)
(46)
(36)
Net profit
(549)
8
-
(14)
(6)
(555)
Cash flows
Cash flow from operating activities
(311)
-
-
(11)
(11)
(322)
Cash flow from investing activities
(282)
-
-
5
5
(277)
Cash flow from financing activities
(685)
-
-
(3)
(3)
(688)
Free cash flow (non-IFRS)
(1,072)
-
-
(2)
(2)
(1,074)
Financial ratios (%)
Organic growth (non-IFRS)
10.85
-
-
-
-
10.85
Operating margin
3.26
(0.06)
0.03
(0.07)
(0.10)
3.16
Financial position
Goodwill
19,086
119
-
-
119
19,205
Other intangible assets
3,298
55
-
-
55
3,353
Right-of-use assets and Property,
plant and equipment
2,994 11 - - 11 3,005
Other assets
19,569
-
-
-
-
19,569
Total assets 44,947 185 - - 185 45,132
Other comprehensive income
(556)
164
-
-
164
(392)
Other equity elements
9,840
8
-
-
8
9,848
Total equity 9,284 172 - - 172 9,456
Deferred tax liabilities
1,132
13
-
-
13
1,145
Other liabilities
34,531
-
-
-
-
34,531
Total equity and liabilities 44,947 185 - - 185 45,132
The table below shows the accounting impact of the hyperinflation restatements for the period 1 January - 30 June 2023:
Inflation restatement
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
32 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
15 Subsequent events
Acquisition in Spain
Intention to divest the French business with the exception of Global Key Account customers
Other than set out above or elsewhere in these condensed consolidated interim financial statements, we are not aware of events
subsequent to 30 June 2023, which are expected to have a material impact on the Group’s financial position.
On 11 July 2023, ISS signed an agreement to acquire 100% of the shares in Grupo Fissa in Spain. Closing is expected in Q3 2023.
The acquisition will strengthen our market position in Spain and enable ISS to expand and develop its cleaning service offering to
public sector customers predominantly in Southern Spain.
The acquisition will add annual revenue of DKK 721 million, representing around 1% of Group revenue (estimated based on
unaudited financial information), and more than 4,500 employees.
Today, ISS announced its intention to divest its French business with the exception of Global Key Account customers that would
become the exclusive focus going forward.
Historically, financial results in France have not been satisfactory and have been dilutive to Group operating margins and growth.
Furthermore, the development in France has not generated the expected financial improvements due to inherent strategic
challenges, difficult market conditions, and continued muted commercial development.
During the past several years, ISS has worked towards restructuring the business and establishing a solid foundation in the French
market. However, building a long-term, sustainable business with a strengthened market position in France will require further
significant investments and management attention. ISS therefore intends to strategically reposition itself in the French market to
focus on servicing its Global Key Account customers and intends to divest its other activities.
As a consequence, as of today, ISS France, excluding Global Key Account customers, will be classified as held for sale and
discontinued operations in accordance with IFRS. Consequently, for 2023 the results of ISS France will be presented in “Net profit
from discontinued operations” in the statement of profit or loss, and comparative figures for 2022 will be restated accordingly. In
the statement of financial position, assets and liabilities of ISS France will be reclassified to a single asset and liability line,
respectively, with no restatement of comparative figures. The statement of cash flows will be unchanged.
Classification as held for sale as of today did not result in impairment losses in addition to the total impairment losses of DKK 1,257
million recognised in the Group’s statement of profit or loss as per 30 June 2023.
Expected im pact on profit or loss o f recl assification
(DKKm)
YTD 2023
(rep o rted)
ISS France
(estimated
effect of
reclass.)
YTD 2023
(adjusted)
YTD 2022
(repo rted)
ISS F rance
(estimated
effect of
reclass.)
YTD 2022
(adjusted)
Revenue 39,661 (1,331) 38,330 36,943 (1,370) 35,573
Expenses (38,411) 1,422 (36,989) (35,882) 1,409 (34,473)
Operating profit before other items 1,250 91 1,341 1,061 39 1,100
Other income and expenses, net (317) 321 4 180 - 180
Goodwill impairment (937) 937 - - - -
Amortisation/impairment of brands and customer contracts (32) - (32) (35) - (35)
Operating profit (36) 1,349 1,313 1,206 39 1,245
Financial expenses, net (318) 6 (312) (157) 2 (155)
Profit before tax ( 354) 1,355 1,001 1,049 41 1,090
Income taxes (235) 25 (210) (252) 7 (245)
Profit fro m continuing operations (589) 1,380 791 797 48 845
Profit from discontinued operations 34 (1,380) (1,346) 122 (48) 74
Net profit ( 555) - (555) 919 - 919
Organic growth, % 10.9% 11.4% 6.7% 7.3%
Operating margin (before other items), % 3.2% 3.5% 2.9% 3.1%
Operating margin (before other items), %, excl. IAS 29 3.3% 3.6% 2.9% 3.1%
____________________________________________________________________________________________________________
ISS A/S – Interim report for the period 1 January - 30 June 2023
33 of 35
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
34 of 35
Other
Conference Call
A conference call will be held on 10 August 2023 at
10:00 am CEST. Presentation material will be
available online prior to the conference call.
Dial-in details
DK: +45 7876 8490
SE: +46 4 0682 0620
UK: +44 203 7696 819
US: +1 646 787 0157
PIN Code for all countries: 283234
Link: https://issworld.eventcdn.net/events/interim-
report-h1-2023
For investor enquiries
Jacob Johansen, Head of Group Investor Relations
Phone: +45 21 69 35 91
E-mail: jjo@iss.biz
Kristian Tankred, Senior Investor Relations Manager
Phone: +45 30 67 35 25
E-mail: krt@iss.biz
For media enquiries
Kenni Leth, Director of External Communications
Phone: +45 51 71 43 68
E-mail: kle@iss.biz
Contact information
Tel.: +45 38 17 00 00
Fax.: +45 38 17 00 11
www.issworld.com
CVR 28 50 47 99
Company announcement no. 20/2023
Copenhagen, 9 August 2023
ISS A/S – Interim Report for 1 January – 30 June 2023
35 of 35
Our global footprint
ISS is a leading, global provider of workplace and facility service solutions. In
partnership with customers, ISS drives the engagement and well-being of people,
minimises the impact on the environment, and protects and maintains property.
ISS brings all of this to life through a unique combination of data, insight and
service excellence at offices, factories, airports, hospitals and other locations
across the globe. In 2022, Group revenue was DKK 76.5 billion.