Company Announcement
Copenhagen, 24 February 2022
No. 01/2022
Annual Report 2021
Highlights
- The execution of the OneISS strategy continues to develop as planned. Key milestones were achieved during 2021, and the foundation for the future execution of the operating model has been established. ISS is now turning to the next phase in the strategy execution with five updated strategic priorities.
- A new IT & Digitalisation strategy and organisation have been introduced with the first early deliverables and applications introduced in the market. With the strategy, ISS will develop high-quality digital solutions for customers and employees, build scalable and secure cloud-based technology platforms, and run stable IT operations and services.
- ISS commits to reach full-scope net-zero greenhouse gas emissions by 2040, including reduction of CO2-footprint from food, halve the amount of food waste by 2027 and electrification of the global fleet.
- The short-term turnaround initiatives continue to progress according to plan, and financial performance is on track to deliver on turnaround targets by the end of 2022.
- Commercial momentum has strengthened throughout 2021, and the pipeline is improving. The two largest contracts due to expire in 2022 have been successfully extended.
- The divestment programme is nearing completion. The remaining programme consists of two smaller business units and three countries. The expected total divestment proceeds of DKK 2 billion is unchanged, of which DKK 1.8 billion has been signed or completed.
- Financial results were in line with expectations. Organic growth in 2021 was 2.0% (2020: (6.6)%) supported by solid demand for both portfolio and above-base services in Q4 2021. Operating margin before other items in 2021 was 2.5% compared to 0.5% adjusted for restructuring and one-offs in 2020. Free cash flow in 2021 amounted to DKK 1.7 billion (DKK (1.8) billion in 2020).
- Leverage at the end of 2021 was reduced to 3.8x from 7.1x at the end of 2020 and thereby nearing the turnaround target of below 3x by the end of 2022.
- For 2022, organic growth is expected to be above 2%. The operating margin is expected to be above 3.5% driven by continued underlying business improvements and Free cash flow is expected above DKK 1.3 billion.
Jacob Aarup-Andersen Group CEO, ISS A/S, says:
“2021 was an exciting year as the OneISS strategy came to life and progressed according to plan. Several key milestones were achieved with the divestment programme nearing completion, and we made solid operational and financial progress. Furthermore, we took significant steps in fulfilling our strategic ambitions with a sharper focus on key segments, investments in technology and a more aligned operating model. Despite another year in light of the pandemic, our many placemakers played a vital role in making the world work better – meeting our customers’ demands for dedicated services and improved solutions. ISS is well positioned for a Covid-19 recovery and to become an even stronger business in the future - to the benefit of all our stakeholders.”
For investor enquiries
Jacob Johansen, Head of Group Investor Relations, +45 21 69 35 91
Louisa Baruch Larsson, Senior Investor Relations Manager, +45 38 17 63 38
For media enquiries
Kenni Leth, Head of Global PR & Media Relations, +45 51 71 43 68
About ISS
ISS is a leading workplace experience and facility management company. In partnership with customers, ISS drives the engagement and well-being of people, minimises the impact on the environment, and protects and maintains property. ISS brings all of this to life through a unique combination of data, insight and service excellence at offices, factories, airports, hospitals and other locations across the globe. ISS has more than 350,000 employees around the globe, who we call “placemakers”. In 2021, ISS Group’s global revenue amounted to DKK 71 billion. For more information on the ISS Group, visit www.issworld.com.
ISS A/S, ISIN DK0060542181, ISIN US4651472056, ISS Global A/S, ISIN XS2013618421, ISIN XS1145526825, ISIN XS1673102734, ISS Finance B.V., ISIN XS2199343513
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