COPENHAGEN, 28 JANUARY 2021
ISS REPORTING AND DISCLOSURE NOTE
CHANGES TO REPORTING AND DISCLOSURES IN ISS
With effect from the 2020 Annual Report, ISS will make changes to the reporting and disclosures according to applied reporting standards and to simplify financial communication following the OneISS strategy refresh:
REPORTING CHANGES
-
Additional countries moved to Discontinued Operations
The divestment programme has been expanded to include Taiwan, Russia and Portugal. The countries will according to applicable reporting standards consequently be moved to Discontinued Operations. The revenue of the three countries amounted to around DKK 850 million in total in 2019 with operating margin roughly in line with group average. See page 2 for an overview of the financial implications.
Notice, that approximately DKK 3 billion of (margin-neutral) revenue related to non-strategic business units is expected to be divested but will continue to be included in Continued Operations until the divestments are executed, expectedly during 2021 and 2022. - Simplifying Income Statement reporting
To simplify ISS's financial reporting, it has been decided to change the previous "3-column" Income Statement representation into one column in line with common practice of similar companies. In effect, the income statement will now solely be disclosed in reported format while the Income Statement adjusted for acquisition- related amortisations and impairments will be removed (see page 3 for a simple visual overview of the change). The reporting change will have no economic or financial effect.
- Link to updatedExcel sheet with restated figuresreflecting both changes above for 2019 and H1 2020
COMMUNICATION CHANGES
-
Introduction of H2 financial report
Starting from FY 2020 reporting, ISS will start releasing H2 reports simultaneously with the Annual Reports. The newly introduced H2 report will be focusing on the most relevant analyst and investor information and include full overview of H2 financial results, including the Income Statement and the Cash Flow Statement. See template of the future H2 reports in the following link. -
Specification of one-offs and restructuring costs
Due to the significant one-offs and non-recurring restructuring costs incurred in 2020, ISS will specify the restructuring costs, one-offs and costs associated with the IT security incident in the Income Statement. The purpose is to provide better clarity on the underlying operating margin. After 2020, ISS may incur recurring restructuring costs, which is included in the Operating Profit before other items and included in the preliminary 2021 guidance. Notice that no additional restructuring or one-off costs are expected in 2021. - Conference call with management moved to 10am CET (previously 9am CET)
To allow time for analysts and investors to evaluate the financial reporting before the conference call with management, the standard timing of the Investor conference calls will be moved one hour from previously 9 am CET to 10 am CET. There may be exceptions to the timing of the call to avoid overlaps with other companies' reporting.
ISS A/S, ISIN DK 0060542181 | ISS A/S, CVR 28 50 47 99 | Phone: (+45) 38 17 00 00 |
ISS A/S, ISIN US4651472056 | Buddingevej 197 | Telefax: (+45) 38 17 00 11 |
ISS Global A/S, ISIN XS2013618421 | DK - 2860 Søborg | www.issworld.com |
ISS Global A/S, ISIN XS1330300341 | Denmark | |
ISS Global A/S, ISIN XS1145526825 | ||
ISS Global A/S, ISIN XS1673102734 | ||
ISS FINANCE BV, ISIN XS2199343513 |
COPENHAGEN, 28 JANUARY 2021
EXHIBIT A (REPORTING CHANGE #1)
- 2019 REPORTING IMPACT FROM ADDITIONAL COUNTRIES CLASSIFIED AS DISCONTINUED OPERATIONS ACCORDING TO THE NEW DIVESTMENT PROGRAMME
Income Statement
Reported | Restated | Change | |||
DKK million | FY | FY | FY | ||
2019 | 2019 | 2019 | |||
Revenue | 78,555 | 77,698 | (857) | ||
Operating expenses incl. restructuring costs | (75,265) | (74,446) | 819 | ||
Operating profit before other items | 3,290 | 3,252 | (38) | ||
Other income and expenses, net | (93) | (91) | 2 | ||
Goodw ill impairment | (304) | (304) | - | ||
Amortisation/impairment of brands and customer contracts | (335) | (335) | - | ||
Operating profit | 2,558 | 2,522 | (36) | ||
Financial income and expenses, net | (704) | (703) | 1 | ||
Profit before tax | 1,854 | 1,819 | (35) | ||
Income taxes | (676) | (666) | 10 | ||
Net profit from continuing operations | 1,178 | 1,153 | (25) | ||
Net profit/(loss) from discontinued operations | 193 | 218 | 25 | ||
Net profit (reported) | 1,371 | 1,371 | - | ||
Ratios | |||||
Organic grow th | 7.1% | 7.1% | 0.0% | ||
Operating margin before other items | 4.2% | 4.2% | 0.0% | ||
ISS A/S, ISIN DK 0060542181 | ISS A/S, CVR 28 50 47 99 | Phone: (+45) 38 17 00 00 |
ISS A/S, ISIN US4651472056 | Buddingevej 197 | Telefax: (+45) 38 17 00 11 |
ISS Global A/S, ISIN XS2013618421 | DK - 2860 Søborg | www.issworld.com |
ISS Global A/S, ISIN XS1330300341 | Denmark | |
ISS Global A/S, ISIN XS1145526825 | ||
ISS Global A/S, ISIN XS1673102734 | ||
ISS FINANCE BV, ISIN XS2199343513 |
COPENHAGEN, 28 JANUARY 2021
EXHIBIT B (REPORTING CHANGE #2)
- COLLAPSING OF 3-COLUMN INCOME STATEMENT TO ONE COLUMN
ISS A/S, ISIN DK 0060542181 | ISS A/S, CVR 28 50 47 99 | Phone: (+45) 38 17 00 00 |
ISS A/S, ISIN US4651472056 | Buddingevej 197 | Telefax: (+45) 38 17 00 11 |
ISS Global A/S, ISIN XS2013618421 | DK - 2860 Søborg | www.issworld.com |
ISS Global A/S, ISIN XS1330300341 | Denmark | |
ISS Global A/S, ISIN XS1145526825 | ||
ISS Global A/S, ISIN XS1673102734 | ||
ISS FINANCE BV, ISIN XS2199343513 |
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Disclaimer
ISS A/S published this content on 29 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 January 2021 15:43:01 UTC.