Iss A/s · OMXCOP:ISS
Iss A/s — H1 2001 Earnings Presentation
34 slides from Iss A/s's earnings presentation, Aug 21, 2001
Slide 1: ISS Investor Presentation Half-year 2001
ISS Investor Presentation Half-year 2001 21 August 2001
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements within the meaning of US Private Securities Litigation Act of 1995 and similar laws in other countries regarding expectations to the future development, in particular future sales, operating efficiencies and business ex
Slide 3: Agenda
Agenda • Key figures and consensus • Strategy follow up • Half-year results • Outlook • Appendices ISS - Integrated Service Solutions 3
Slide 4: Half-year key figures
Half-year key figures • Turnover + 25% • Operating profit + 28% • EPS *) + 18% • Organic growth 6% • Operating margin 4.7% *) Earnings per share before goodwill amortisation ISS - Integrated Service Solutions 4
Slide 5: Half-year key figures meet consensus
Half-year key figures meet consensus * ) DKKm Actual Consensus Diff. Turnover 16,712 16,756 0% Operating profit 778 781 0% Operating margin 4.7% 4.7% Financial expenses, net 148 150 1% Ordinary profit before goodwill amortisation 428 430 0% EPS **) 10.41 10.46 0% *) Consensus consists of 13 analysts
Slide 6: Strategy follow up
Strategy follow up
Slide 7: Implementation of strategy
Implementation of strategy • Implementation of create2005 well underway • All four “Business Builds” established • Facility Services expanded its service offering • Transformation will be speeded up in second half of 2001 ISS - Integrated Service Solutions 7
Slide 8: Facility Services
Facility Services • Country organisations now focused on Facility Services • Concept directors appointed – Hospital Services – Property Services – Clean Room Services • Facility Services strengthened through 28 acquisitions – 1 platform enhancing in landscaping (DKK 870 million) – 1 new country: Jap
Slide 9: Facility Services
Facility Services • Landscaping identified as part of concept • Viapark and Théra Sylve (acquired November 2000) – DKK 64 million in annual turnover • Compagnie Générale Espaces Verts (acquired July 2001) – Largest landscaping provider in France – DKK 870 million in annual turnover ISS - Integrated
Slide 10: Facility Services
Facility Services • Japan entered Mitsui ISS 50% 50% • World’s second largest economy – Potential market of DKK 300 billion Bussan ISS • JV with Mitsui – Among Japan’s three largest companies Nesco • Starting out with Nesco – Well established Facility Services company – DKK 125 million in annual tur
Slide 11: Business Builds
Business Builds • Management established in all four Business Builds • In eight countries 19 Business Builds were carved out • 12 acquisitions – 3 in CarePartner (DKK 323 million) – 7 in Damage Control (DKK 146 million) – 2 in Aviation (DKK 35 million) ISS - Integrated Service Solutions 11
Slide 12: CarePartner
CarePartner • Solid organic growth + expanded service offering • Minority stake in Axess acquired in November 2000 – Stake increased from 27.3% to 35.5% in 2001 – Two new contracts in 2001 with total annual turnover of DKK 250 million • FysiologLab acquired in June 2001 – Physiological and diagnosti
Slide 13: Damage Control
Damage Control • Nordic platform expanded by six acquisitions – Ocab and Sanab, Sweden (DKK 91 million) – Fuktor and Sekko, Finland (DKK 38 million) – Electroline, Denmark (DKK 6 million) – Hurum, Norway (DKK 1 million) • Established in the Netherlands and Israel through two acquisitions – Lavold (D
Slide 14: Aviation
Aviation • Important new contracts gained in first half 2001 • Integration of acquisitions made in the second half of 2000 – Nordic Aero, Europe (DKK 155 million) – Fernley, UK (DKK 64 million) – Airport Cleaning, Spain (DKK 13 million) • Two acquisitions in the Netherlands in July 2001 – Aircraft L
Slide 15: Food
Food • Focus has been on improving performance outside Denmark • Acquisition pipeline elaborated • Concept documentation heavy, but in solid progress ISS - Integrated Service Solutions 15
Slide 16: Acquisition split
Acquisition split Acquired CarePartner turnover Damage Control Aviation Other FS Landscaping ISS - Integrated Service Solutions 16
Slide 17: Transition
Transition • ISS has tripled over the past 3 years • Financial systems and methods adopted to accommodate, accelerate and underpin the growth • The total business needs to move to a more global approach • create2005 defines the framework for that change ISS - Integrated Service Solutions 17
Slide 18: Transition
Transition • To illustrate progress, since create2005 – World wide intranet for 6,300 users established – Knowledge mgmt. IT system for 1,100 users established – Common web-platform & homepage mgmt. system in 36 countries – Testing a corporate system package (implementation starts this year) – Devel
Slide 19: Transition
Transition • Changing global economy leads ISS to also accelerate other plans – Closing/merging over 75 legal entities (next 6-9 months) – Closing a significant number of branch offices this year – Accelerating integration of latest acquisitions • and to be more conservative in our view of – Account
Slide 20: Half-year 2001 results
Half-year 2001 results
Slide 21: Half-year results 2001: Turnover GAP
Half-year results 2001: Turnover GAP 16,712 13,325 Turnover Acquisitions Organic Currency Turnover 2000H1 growth effect 2001H1 ISS - Integrated Service Solutions 21
Slide 22: Half-year results 2001: Group operations
Half-year results 2001: Group operations Operating margin 7.0% 5.9% 6.2% 5.8% 6.0% 5.2% 5.0% 4.4% 4.6% 4.7% 4.0% 4.0% 3.0% 2.0% 1.0% 0.0% Northern Europe Southern Overseas Group Europe 2000H1 2001H1 ISS - Integrated Service Solutions 22
Slide 23: Half-year results 2001: Profit & loss
Half-year results 2001: Profit & loss DKKm 2001H1 2000H1 Change 2000 Turnover 16,712 13,325 +25% 28,719 Operating profit 778 608 +28% 1,454 Operating margin 4.7% 4.6% 5.1% Other income and expenses 0 (4) (3) Financial expenses, net (148) (102) (244) Tax (202) (161) (377) Ordinary profit before goodw
Slide 24: Half-year results 2001: Cash flow
Half-year results 2001: Cash flow DKKm 2001H1 2000H1 2000 Operating profit 778 608 1,454 Depreciation 255 200 468 Working capital / provisions (769) (462) (135) Interest payments (152) (78) (225) Tax paid (152) (125) (294) Other items 0 (1) (3) Cash flow from operations (40) 142 1,265 Investment in
Slide 25: Half-year results 2001: Balance sheet
Half-year results 2001: Balance sheet DKKm 30.06.01 31.12.00 Ratio Goodwill/intangible 10,380 9,578 108 Tangible fixed assets 1,407 1,363 103 Financial fixed assets 461 383 120 Debtors & Stocks 6,573 5,516 119 Liquid funds 1,168 324 360 Total assets 19,989 17,164 116 Total equity 6,603 5,730 115 Pro
Slide 26: Half-year results 2001: Key figures
Half-year results 2001: Key figures 30.06.01 31.12.00 30.06.00 Interest coverage 5.3 6.0 6.0 Equity ratio 33% 33% 33% Debt to equity ratio (book value) 79% 76% 75% Debt ratio (market value) *) 19% 17% 15% *) Interest bearing debt as a percentage of the sum of the market capitalisation and net intere
Slide 27: Outlook 2001
Outlook 2001 - Please refer to “Forward-looking statements” on page 2 • Including acquisitions announced prior to 21 August 2001: – Increase in turnover of approx. 20% – Full year effect of trimming of contracts more than 1% – Increase in operating profit before non-recurring costs of approx. 20% –
Slide 28: Appendices
Appendices
Slide 29: ISS Services
ISS Services ISS - Integrated Service Solutions 29
Slide 30: Acquisition update as at August 2001
Acquisition update as at 21 August 2001 • 40 acquisitions in 15 countries Belgium Brazil Denmark (incl. Greenland) • Facility Services: Finland France – 1 new country: Japan Germany – 1 platform enhancing in Landscaping Hong Kong – 26 bolt-ons Israel Japan Netherlands • Business Builds: Norway – 7 i
Slide 31: New shares
New shares • Private placement at market price end of March – 1,704,545 new shares – Gross proceeds of DKK 750 million – 40 institutional investors subscribed • Employee share programme end of May – 345,705 new shares – 5,134 employees subscribed (43% more than in 1999) – 24 ISS countries participat
Slide 32: Shareholder base
Shareholder base Rest of Asia Europe 2% 11% Denmark December 2000 33% US & Canada 28% Rest of Europe Asia UK 12% 2% 26% Denmark 30% US & Canada 30% June 2001 UK 26% ISS - Integrated Service Solutions 32
Slide 33: Analysts
Analysts The analysts named below follow ISS on a regular basis Name Telephone number E-mail address Denmark Alfred Berg Carsten Dehn +45 33 96 19 24 [email protected] Bank Insinger de Beaufort Bjarne Sørensen +45 33 43 21 64 [email protected] Carnegie Carsten Leth +45 32 88 02 72 cjle
Slide 34: Contacts
Contacts • ISS A/S Bredgade 30 DK-1260 Copenhagen K Denmark www.issworld.com • IR contacts: Phone: +45 38 17 63 30 Fax: +45 33 91 06 17 e-mail: [email protected] ISS - Integrated Service Solutions 34