ISS UK Advantage - The ISS Way

Our Strategic Direction and The ISS Way

Richard SykesMay 2013

A WORLD OF SERVICE

2

A global business…… with more than 100 years of heritage

Central Europe

West Europe

Nordic

Iberia and LatAm

Asia and Pacific

East Europe

North America, UK, Ireland and MiddleEast

32%

Rev

enu

e

Em

plo

yees

14%

17%

14%

4%12%

30%

9%

2%

22%

15%15%

11%

10%25%

2%

Group revenue: DKK >75 billion No. of employees: ~541,000

Argentina, Australia, Austria, Belgium, Bosnia and Herzegovina, Brazil, Brunei, Canada, Chile, China & Hong Kong, Croatia, Czech Republic, Denmark & Greenland, Japan, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Latvia, Lithuania, Luxembourg, Malaysia, Mexico, Netherlands, New Zealand, Norway, Philippines, Poland, Portugal, Romania, Russia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Turkey, United Kingdom, Uruguay, USA

3

…with the ability to deliver a full product and service range…

Facilities Management

Support Services

Security Services

Cleaning Services

CateringServices

Property Services

Service split

52%

21%

7%

9%

4%7%

4

5

We are undergoing a transformation…

Cleaning

Facility Services

1. CAPABILITY

Local

Global

2. MARKET

Product

Customer orientation

3. VALUE PROPOSITION

Acquisitive

Organic growth

4. GROWTH

People

People and Processes

5. PROCESSES

The Customers’ Need: A Sustainable Solution…which is well advanced

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BUSINESS MIX

Non-cleaning as % of total

IFS revenue

33%

DKK 1.2 Bln (3%)

49%

DKK 16.6 Bln (21%)

16ppt

x 13.8

GEOGRAPHY

Countries(3)

Emergingmarkets(4)

42

DKK 2.3 Bln (6%)

50

DKK 15.0 Bln (19%)

+ 19%

x 6.5

+ 92%

+ 95%

OVERALL GROWTH

Revenue

Employees

DKK 40.4 Bln

~ 274,000

DKK 77.6 Bln

~ 535,000

ISS 2004(1)

(PRE-ACQUISITION) ISS TODAY – 2011

1. 2004 revenue represents the last annual revenue prior to ISS being taken private2. Operating profit refers to operating profit before other items3. Excludes 13 countries in which ISS currently provide services without any local management presence or registered office4. EM defined as Asia, Eastern Europe, Latin America, Turkey, Israel, and South Africa5. Defined as contract involving operations in more than 1 country and centrally procured

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…with more than 500,000 employees covering above than 90% of world’s GDP – how can we succeed in this

transformation and create the world’s greatest service

company?

It’s all aboutcreating purpose

What is our common purpose? - Meeting the customer’s need

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Value added offeringCredible and effective risk management, including HSE and local labour law managementBrand protection

Delivery capabilitiesSingle Service ExcellenceConsistent delivery globallyFlexible delivery model

Integration of servicesOne point of contact - convenienceEfficiencies and financial certainty

ISS Value Proposition & Competencies

The customer’s need: A sustainable solution

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We

self-deliver the services neededwith our own employees

And each individual has to have purpose

Are youremovingdirt…

…or lettingthe sun in?

Are youmowingthe lawn…

…or clearing a space for reflection?

Are you moving patients around…

…or helping people back on their feet?

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”What is really important at my hospital is that patients and their relatives are always dealt with by polite and caring staff at a time that can be very stressful and upsetting. As a porter, I am often the first person that a patient or relative meets, so I always try to be friendly and helpful. Some people want to chat while others prefer silence – that is the skill in my job.

I make a difference to their whole experience of the hospital and possibly how fast they may recover.”

A real life example of Purpose…

George Wickham, Porter, Royal Liverpool

Hospital

Purpose is a pre-requisite – but cannot stand

alone…

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Our Current Strategic Focus – Alignment

VISION

VALUES & LEADERSHIP PRINCIPLES

GROUP POLICIES

STRATEGIC CORNERSTONES

KEY STRATEGIC PRIORITIES

BUSINESSPLATFORM

Universal application across the

Group

Adapted locally and regionally based on

Group strategic direction

A WORLD OF SERVICE

Framework for aligning and optimising our business

The foundation is common for all our operations – defines how the business is run

Each region has certain freedom to execute the strategy tailored to its market, through leveraging the know-how and best practices of the Group

And how will we secure alignment?

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…by putting hearts and minds to work together

989910291

020406080

100120

2005 2006 2007 LTM H12008

Priority 1: Cash Conversion (EBITA)

5.7%5.8%

6.0% 6.0%

5.4%

5.6%

5.8%

6.0%

6.2%

2005 2006 2007 LTM H12008

Priority 2: Operating Margin (EBITA)

3.5%

5.5% 6.0% 5.8%

0.0%

2.0%

4.0%

6.0%

8.0%

2005 2006 2007 LTM H12008

Priority 3: Organic Growth

6.06

7.28

6.16

6.59

5.75

6.25

6.75

7.25

7.75

2005 2006 2007 LTM H12008

Priority 4: Delev. on a multiple basis

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Our implementation tool - the ISS Value Chain

Defining playing fields, rules and strategic priorities Turning strategic

priorities into attractive and operational service offerings

Engaging capable individuals in all positions

Delivering on promises

Following up on customer experience to identify areas of improvement

Managing sales effectively

Boosting the Business Platform

Purpose and alignment – our route to success

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VISION

VALUES & LEADERSHIP PRINCIPLES

GROUP POLICIES

STRATEGIC CORNERSTONES

KEY STRATEGIC PRIORITIES

BUSINESSPLATFORM

Our Strategic Direction and The ISS Way

Richard SykesMay 2013

A WORLD OF SERVICE