ISS A/S : 2024 Q1 Trading Update Presentation

ISS INVESTOR PRESENTATION

Q1 2024 Trading Update

2 May 2024

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Kasper Fangel

Group CEO

Agenda

1 Executive summary

2 Strategic update

3 Market and Business

4 Financials & Outlook

5 Q&A

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Executive summary

- Promising start to the year with continued business improvements

Financials	Commercial	M&A
Organic growth driven by	The commercial	The divestment of ISS France
price and volume growth	development remains solid	has been completed
-	-	-
DKK 209m of share buyback	Continued strong customer	ISS has acquired
programme completed	retention rate	gammaRenax in Switzerland
-
Outlook 2024 is confirmed

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3

1. Executive summary
2. Strategic update
3. Market and Business
4. Financials & Outlook
5. Q&A

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Strategic update

- Execution of the OneISS strategy continued

Commercial	Operational		Acquisition &
development	development		divestment
• Distinct focus on retaining	• The operating margin	•	The divestment of ISS
customers resulting in	benefitted from continued		France is completed, and
customer retention rate of	operational improvements		financial leverage remains
above 94% (LTM)	and efficiencies across the		broadly unchanged
	Group
• Contracts with Nordea and a	• The arbitration process with	•	ISS has completed
global bank, has been		acquisition of gammaRenax
extended	Deutsche Telekom is		in Switzerland, which follow
	progressing according to		ISS' strict M&A approach
• These extensions are a	plan, and Deutsche Telekom		with focus on value creation
continues to withhold certain
testament of ISS' strong	payments
value proposition and

experience in the banking sector

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5

Acquisition of gammaRenax AG in Switzerland

- bolt-on acquisition strengthening ISS' leading market position

		Strategic fit			Financial	Transaction highlights
				accretive
					Around 0.6%
	•	Adding scale within		•	The deal is margin accretive	addition to Group revenue
		prioritised service lines			(post synergies) to both ISS
		(cleaning and technical) in			Switzerland and Group
		prioritised segments		•	ROIC including synergies	April 2024
				transaction completed
	•	Strengthen current platform			above WACC in first full year
		and improving density				+1,800
				•	Disciplined integration
	•	Integration will drive			process, which is expected to	new placemakers
		synergies by leveraging ISS			be concluded by the end of
		platform			2024	Strong and experienced local
						management team
						successful with similar type of acquisitions
						in the past
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Agenda

1. Executive summary
2. Strategic update
3. Market and Business
4. Financials & Outlook
5. Q&A

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Commercial development

- pipeline driven by local and regional deals

Extensions and expansions1)

• Healthcare customer, Turkey
• Global banking customer, Switzerland
• Healthcare customer, UK (expanded c. 0.1% of Group revenue)
• Energy & Resources customer, Sweden

Losses and exits1)

• Professional Services customer, UK (c. 0.2% of Group revenue)

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Large key accounts2) contract maturity
profile
Expiry 2024		Expire 2027
Expire 2025		Expire 2028+
Expire 2026
3%	9%
		4%
Other		7%
customers
29%		10%
Smaller
key accounts
	38%

1. Since Q4 2023 results on 22 February 2024. Includes contracts above DKK 100 million annually
2. Chart is based on all global key accounts and key accounts generating revenue above DKK 200 million annually

Agenda

1. Executive summary
2. Strategic update
3. Market and Business
4. Financials & Outlook
5. Q&A

PEOPLE MAKE PLACES

Quarterly organic growth

- continued strong portfolio growth

Quarterly revenue1) and organic growth

Non-portfolio revenue, DKK bn	Portfolio revenue, DKK bn	Organic growth		20.5
			19.7		19.5	19.4	20.0
			19.3
		18.6	3.6
	18.1					2.9
17.4		3.8	3.1	3.2	3.1
	3.2
	3.2
3.2
			10.1%	12.0%
				10.9%		9.3%
		8.6%	8.7%
		16.1	16.3	16.3	16.9	17.1
14.2	14.9	15.4	15.9
			7.1%
6.0%							6.0%

		Q1 22	Q2 22	Q3 22	Q4 22	Q1 23	Q2 23	Q3 23	Q4 23	Q1 24
	1) excl. IAS 29
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