Iss A/s · OMXCOP:ISS
Iss A/s — Q3 2009 Earnings Presentation
24 slides from Iss A/s's earnings presentation, Nov 25, 2009
Slide 1: Investor Presentation - Q3 2009 Results
Investor Presentation - Q3 2009 Results - 25 November 2009
Slide 2: Forward-looking Statements
Forward-looking Statements Forward-looking statements This presentation may contain forward-looking statements. Statements herein, other than statements of historical fact, regarding future events or prospects, are forward-looking statements. The words ‘‘may’’, “will”, “should”, ‘‘expect’’, ‘‘antici
Slide 3: Agenda
Agenda Key Events Interim Report Capital Structure Outlook 3
Slide 4: Key Events
Key Events
Slide 5: Key Events Q3 2009
Key Events Q3 2009 Robust performance in bleak macro economic environment Focus on operational priorities sustained 1. Cash Flow 2. Operating Margin 3. Organic Growth LTM cash conversion of 113% Nordic, Asia/Pacific and Latin Contract portfolio growth continues, America - increased margins new inter
Slide 6: Key Events Q3 2009 (cont.)
Key Events Q3 2009 (cont.) Adjustment of cost base Restructuring projects to adapt capacity in Western Europe to current demand Project to reduce fixed cost structure initiated globally Refinancing of 2010 EMTNs Partial refinancing of EUR 500 mill. successfully completed in July Securitization of tr
Slide 7: Key Events Q3 2009 (cont.)
Key Events Q3 2009 (cont.) Implementation of The ISS Way strategy continues Deep deployment of the ISS Value Chain in the current regional/country strategy process Strategic approach to portfolio decisions Acquisitions, divestments, organic growth targets Restructurings in key Western European count
Slide 8: Interim Report
Interim Report January - September 2009
Slide 9: Key Operational Priorities - Sustained
Key Operational Priorities - Sustained Priority 1: LTM Cash Conversion (%)1 Priority 2: Operating Margin (% revenue) 120 10.0% 100 113 8.0% 102 103 5.8% 6.0% 5.9% 99 98 80 6.0% 60 5.9% 4.0% 5.5% 40 20 2.0% 0 0.0% 2006 2007 2008 LTM LTM 2006 2007 2008 YTD YTD Septem ber Septem ber Septem ber Septem b
Slide 10: YTD September 2009 Key Figures
YTD September 2009 Key Figures DKKm 2009 2008 Δ FX C*) Revenue 51,134 51,074 +0% -4% +4% Operating profit before other items 2,807 2,989 -6% -3% -3% Operating margin before other items 5.5% 5.9% Operating profit 2,504 2,867 -13% -3% -10% Organic growth 0.5% 5.5% *) C: Growth at constant exchange rat
Slide 11: Restoring profitability - Operating Profit before Other Items
Restoring profitability - Operating Profit before Other Items 7% Current year Previous year 6.5% 6.5% Year to date 6.3% 6.1% 6.0% 6% 5.9% 5.7% 36bp 5.5% 5.5% 52bp 5.0% 5% 4.7% 4.3% 4% Q4-08 Q1-09 Q2-09 Q3-09 Q2-YTD Q3-YTD 11
Slide 12: YTD September 2009 Operating Margin - By Region
YTD September 2009 Operating Margin - By Region Operating Profit before Other Items 10% 2009 2008 8% 7.2% 7.1% 7.1% 6.9% 6.7% 6% 6.6% 6.6% 6.2% 6.0% 6.0% 5.9% 5.7% 5.8% 5.5% 5.3% 5.1% 4% 2% 0% Nordic Western Eastern Asia Latin North Pacific Group Europe Europe America America 24% 56% 2% 6% 3% 4% 5%
Slide 13: YTD September 2009 Revenue Growth - By Region
YTD September 2009 Revenue Growth - By Region 50% Organic Acquisition, net 40% 37% Total incl. FX 30% 28% 20% 16% 16% 14% 12% 10% 8% 8% 7% 3% 3% 2% 2% 0% 0% 0% 0% -1% -1% 0% -2% -2% -2% -5% -7% -10% Nordic Western Eastern Asia Latin North Pacific Group Europe Europe America America FX: -7% -3% -8% 7
Slide 14: YTD October 2009 - Acquisitions
YTD October 2009 - Acquisitions Acquisitions Average EV/EBITA acquisition multples Strategic decision to slow-down acquisitions 9,000 14 8,000 21 acquisitions completed until 31 12 7,000 9.7x 9.9x October 2009 9.5x 10 6,000 8.0x 8.3x 7.9x 7.8x (DKK million) 7.2x 7.6x Average multiple: 5.8x EBITA 5,0
Slide 15: Debt Service Capacity
Debt Service Capacity 6,000 6,000 5,000 5,000 2,874 2,960 2,586 1,778 2,021 4,495 4,000 1,839 4,334 1,823 4,301 1,472 4,000 4,199 1,180 3,990 (DKK million) 3,853 3,713 3,594 3,681 3,000 3,000 2,000 2,415 2,176 2,172 2,103 2,000 2,373 2,458 2,267 2,503 2,304 1,000 1,000 768 928 952 991 712 695 636 72
Slide 16: Capital Structure
Capital Structure
Slide 17: Capital Structure
Capital Structure Pro Forma Adjusted EBITDA Pro Forma calculation(1) DKKm 12 months ended 30 September, 2009 Adjusted EBITDA 4,776 Estimated PF adjusted EBITDA of acquired and divested businesses 47 Estimated PF Adjusted EBITDA 4,823 Note: (1) The calculations of pro forma adjusted EBITDA are based
Slide 18: Capital Structure (cont.)
Capital Structure (cont.) Pro Forma Capital Structure – 30 September, 2009 Capitalisation (1) DKKm (2) % of Total Cash and securities (2,174) (7%) Other Indebtedness 371 1% Senior Facilities 18,201 57% EMTNs 3,427 11% Senior Notes 3,908 12% Total Net Senior Debt 23,733 74% Second Lien 4,467 14% Seni
Slide 19: Pro Forma Credit Ratio
Pro Forma Credit Ratio CAPITALISATION (DKKm) Q3 2009 Total Net Debt 32,004 U Working Capital YTD 2009 (976) U Working Capital LTM (494) = Seasonality Adj. Pro Forma Net Debt 30,534 PF Adjusted EBITDA 4,823 Seasonality Adjusted PF Net Debt / PF EBITDA 6.33x 19
Slide 20: Pro Forma Credit Ratios
Pro Forma Credit Ratios Pro Forma Credit Ratios Q3 2009 PF Net Debt / PF EBITDA 6.64x Seasonality Adj. PF Net Debt / PF EBITDA 6.33x PF Net Senior Debt (incl. EMTNs & Senior Notes) / PF EBITDA 4.92x PF Net Senior Debt (excl. EMTNs & Senior Notes) / PF EBITDA 3.40x 20
Slide 21: Maturity Of Credit Facilities
Maturity Of Credit Facilities 16,000 14,000 12,000 DKK millions 10,000 8,000 6,000 4,000 2,000 0 2009 2010 2011 2012 2013 2014 2015 2016 Senior EMTNs Senior Notes Second Lien High Yield Securitisation 21
Slide 22: Outlook
Outlook
Slide 23: Outlook
Outlook The outlook set out below should be read in conjunction with ”Forward-looking statements” on page 2 of this presentation The Group will continue focusing on Broadening facility services and strengthening single service excellence Key operational objectives (i) cash flow, (ii) operating margi
Slide 24: Investor Presentation - Q3 2009 Results
Investor Presentation - Q3 2009 Results - 25 November 2009