ISS A/S

05/05/2021 | Press release | Distributed by Public on 05/04/2021 23:37

UNDERLYING BUSINESS IMPROVEMENT IN A CONTINUED CHALLENGING ENVIRONMENT

Company Announcement

Copenhagen, 5 May 2021
No. 14/2021

TRADING UPDATE FOR 1 JANUARY - 31 MARCH 2021

HIGHLIGHTS

  • Organic growth was (5.6)% in Q1 2021 (Q4 2020: (11.0)%), representing a notable improvement compared to previous quarters supported by continued solid demand for above-base work, especially deep-cleaning and disinfection.
  • Execution of the OneISS strategy progressed as planned in Q1 2021 with good momentum on the divestment programme and early enhancement initiatives of the operating model.
  • The turnaround initiatives driving the recovery of underperforming contracts and countries are progressing as planned.
  • The overall financial results in Q1 2021 were in line with expectations. The underlying operating margin has continued to improve since Q2 2020, and total readily available liquidity increased compared to 31 December 2020. Based on the stabilised financial performance and available liquidity, ISS has decided to cancel a EUR 700 million revolving credit facility, which was established in 2020 as backup liquidity.
  • Seven divestments were signed or completed in 2021 up until 30 April. Total net proceeds amount to approximately DKK 1 billion, entailing a solid reduction in net debt upon expected completion in Q2 2021. The divestment programme targets approximately DKK 2 billion in total net proceeds in 2021 and 2022.
  • The Outlook for 2021 and the Turnaround targets are confirmed. The Outlook assumes a gradual easing of restrictions and lockdowns in key markets starting from Q2 2021.

Jacob Aarup-Andersen Group CEO, ISS A/S, says:
'I am pleased with the continued successful execution of the OneISS strategy and how we are gradually improving the underlying business. The global workplace continues to be heavily impacted by Covid-19 restrictions and lockdowns, but the ISS organisation and our frontline employees show impressive resilience by supporting our customers with passion and pride in these challenging times.

The financial performance is developing as planned. We are seeing the impact of our restructuring efforts in the improved profitability at lower volumes in our food business, while we are leveraging the increased demand for deep-cleaning and disinfection. Our OneISS investments are continuing in the commercial, operational and technology areas, creating a strong platform to leverage the business opportunities when markets re-open.'

For investor enquiries
Michael Bjergby, Head of Group Investor Relations, +45 31 37 41 71
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. In 2020, ISS Group's global revenue amounted to DKK 70 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