ISS Holding Investor Presentation Interim Report January March 2008

Transcription

1 ISS Holding Investor Presentation Interim Report January March 2008

2 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, anticipate, believe, estimate, plan, "predict," intend or variations of these words, as well as other statements regarding matters that are not historical fact or regarding future events or prospects, constitute forward-looking statements. ISS has based these forward-looking statements on its current views with respect to future events and financial performance. These views involve a number of risks and uncertainties, which could cause actual results to differ materially from those predicted in the forward-looking statements and from the past performance of ISS. Although ISS believes that the estimates and projections reflected in the forward-looking statements are reasonable, 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 the annual report 2007 of ISS Holding A/S and other information made available by ISS. As a result, you should not rely on these forward-looking statements. ISS undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. The Annual Report 2007 of ISS Holding A/S is available from the Group s website, 2 Lead Facility Services Globally

3 Agenda Key Events Interim Report Acquisitions Other Financial Measures 3 Lead Facility Services Globally

4 Key Events

5 Key Events YTD HP contract Landmark global IFS contract ISS to deliver services in more than 40 countries 24 acquisitions to 30 April 5 platform developers, predominantly security and cleaning 19 bolt-ons New Group CFO appointed (1) Jacob Stausholm (39), will start 1 September 2008 Widespread international experience from Shell (1) Cf. press release 8 May Lead Facility Services Globally

6 Key Events YTD - Strong Performance In Q1 2008, revenue increased by 10% 6% organic growth, from growth regions, but also mature markets 5% acquisition growth, net negative impact from FX of 1% Resulting in an increase from DKK 14.9bn in Q to DKK 16.4bn in Q Operating margin remained unchanged at 4.7% Operating profit increased from DKK 697m in Q to DKK 772m in Q Net Debt to EBITDA decreased Ratio decreased from 6.16x (end 2007) to 6.14x Q Lead Facility Services Globally

7 Interim Report January March 2008

8 Key Figures Q1 DKKm Q Q Δ Revenue 14,930 16, % Operating profit before other items % Operating margin before other items 4.7% 4.7% Operating profit % Organic growth 6% 6% 8 Lead Facility Services Globally

9 Revenue Development - March DKKm % Revenue March 2007 YTD 14, Organic growth Acquisitions, net FX Total growth 1, Revenue March 2008 YTD 16, Lead Facility Services Globally

10 Q Revenue Growth - By Region 50% 40% 41% 30% 20% 10% 0% 12% 24% 20% 17% 14% 17% 23% 6% 6% 6% 4% 4% 2% 4% 5% 0% 0% Nordic Western Europe Central & Eastern Europe 10% 6% 5% Asia LatAm Pacific Group Organic Acquisition, net Total incl. Currency FX: 0% -2% 5% -11% 0% 1% -1% 10 Lead Facility Services Globally

11 Organic Growth in Emerging Markets Revenue Q Organic Growth Q % 4% 2% 6% 4% Rest of Group 10% Asia 92% Latin America Central & East Europe 80% 11 Lead Facility Services Globally

12 Q Operating Margin - by Region Operating Profit before Other Items 10% 8% 6% 4% 5.2% 5.3% 5.1% 4.8% Q Q % 5.9% 5.3% 5.6% 6.3% 5.8% 5.5% 5.6% 5.0% 2% 0% Nordic Western Europe Central & Eastern Europe Asia Lat Am USA Pacific 25% 58% 2% 4% 3% 3% 5% % of March 08 Revenue 12 Lead Facility Services Globally

13 Acquisitions

14 Acquisitions 2008 To 30 April Revenue, DKKm (1) Platform Developers Adams Secuforce, Hong Kong (Security) 111 Kfir, Israel (Security, Office Support) 268 Strata, UK (Security) 152 BGM Industries, USA (Security, Cleaning) 510 Aspis, Greece (Security) 216 Others, incl. small and medium Total of 19 acquisitions 521 Total 1,778 Note: (1) Unaudited approximate figures based on information available at the time of acquisition. 14 Lead Facility Services Globally

15 Acquisitions 2008 To 30 April Acquired Revenue By Service (1) 37% 42% Cleaning Office support Property Catering 2% 6% 6% 7% IFS Security Acquired Revenue By Geography (1) 9% 5% Nordic 30% 42% West Europe Asia Pacific 2% 12% Americas Central & East Europe Note: (1) Unaudited approximate figures based on information available at the time of acquisition. 15 Lead Facility Services Globally

16 Acquisition Track Record - Pricing Discipline 9, (DKK million) 8,000 7,000 6,000 5,000 4,000 3,000 2, x 8.0x 6.5x 6.2x 9.5x 7.2x 7.5x 7.2x 9.9x 8.6x 8.3x 8.3x 7.8x 7.3x 7.9x 8.1x 6.8x 7.4x , Apr. '08 Revenue acquired (lhs) All acquisitions Price/EBITA Bolt-On acquisitions Price / EBITA 0 16 Lead Facility Services Globally

17 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 Cash flow Operating margin Profitable organic growth Deleveraging on a multiple basis Making acquisitions to increase local scale and broadening service competencies For 2008 it is expected that (1) revenue in the continuing business will increase by more than 10%, excluding the divested energy activities in France and adjusted for exchange rate changes; operating margin will be maintained at 2007-level (1) See the Outlook section on page 6 in the quarterly report 17 Lead Facility Services Globally

18 Other Financial Measures

19 Other Financial Measures Pro Forma Adjusted EBITDA Pro Forma calculation (1) DKKm 12 months ended 31 March 2008 Adjusted EBITDA 4,754 Estimated PF adjusted EBITDA of acquired and divested businesses 175 Estimated PF Adjusted EBITDA 4,929 Note: (1) The calculations of pro forma adjusted EBITDA are based in part on management estimates and the unaudited internal management accounts of the acquired businesses. These numbers have not been, and cannot be, audited. The Pro Forma EBITDA is based on Last Twelve Months figures. 19 Lead Facility Services Globally

20 Other Financial Measures (cont.) Pro Forma Capital Structure March 31, 2008 Capitalization (1) DKKm (2) % of Total Cash and securities (1,692) (4%) Other Indebtedness 396 1% Senior Facilities 17,371 48% EMTNs 7,162 20% Total Net Senior Debt 23,237 65% Senior Subordinated Notes 3,385 9% Second Lien 4,474 12% Total Net Cash Pay Debt 31,096 86% Shareholders Funding (3) 4,960 14% Minorities 38 0% Total (4) 36, % Notes: (1) This Capitalization table reflects the Capitalization Table included in ISS Holding A/S s Interim Report January March (2) Converted to DKK as per exchange rate of March 31,2008. (3) Equity contribution at the date of the take-over amounted to DKK 7,693 millions. Reduction of Shareholders Funding relates to accounting items. (4) The Total amount in the above table differs from the total capitalization, Consolidated As Adjusted, in ISS Holding A/S s Interim Report January March Lead Facility Services Globally

21 Pro Forma Credit Ratios CAPITALIZATION (DKKm) FY 2007 Q Total Net Cash Pay Debt 29,981 31,096 Working Capital Q (1,067) Working Capital Apr Mar = Seasonality Adj. Pro Forma Net Debt 29,981 30,250 PF Adjusted EBITDA 4,866 4,929 Seasonality Adjusted PF Net Cash Pay Debt / PF EBITDA 6.16x 6.14x 21 Lead Facility Services Globally

22 Deleveraging On A Multiple Basis Net Debt / Pro Forma Adj. EBITDA 7.50x 7.25x 7.00x 7.28x 7.28x 7.28x 7.42x 7.26x 7.09x 7.10x 6.75x 6.50x 6.25x 6.00x OM (end '05) 6.74x 6.88x 6.68x 6.57x 6.59x 6.54x 6.40x 6.31x 6.27x 6.14x 6.16x Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Net Debt / PF Adj. EBITDA Seasonality Adj. Net Debt / PF Adj. EBITDA 22 Lead Facility Services Globally

23 Pro Forma Credit Ratios Pro Forma Credit Ratios Q PF Net Cash Pay Debt / PF EBITDA Seasonality adj. PF Net Cash Pay Debt/ PF EBITDA 6.31x 6.14x PF Net Senior Debt (incl. EMTNs) / PF EBITDA 4.71x PF Net Senior Debt (excl. EMTNs) / PF EBITDA 3.26x 23 Lead Facility Services Globally

24 ISS Holding Investor Presentation Interim Report January March 2008