ISS

Annual Report (ESEF) • Feb 20, 2025

ISS A/S Annual Report 2024 People make places We have a strong drive to act as social incubators and make a true difference for our placemakers, our customers and the surrounding communities and societies, we operate in Our commitment to enhancing both physical and mental spaces, empowering people to unlock their individual potential, a key prerequisite for business success Our purpose Our mission Connecting people and places to make the world work better We make space for people and businesses to thrive 3 Annual Report Remuneration Report Governance Report The 2024 Annual Report is our primary report comprising disclosures related to financial and sustainability performance. The requirements related to our sustainability and diversity performance as defined by sections 99a and 107d of the Danish Financial Statements Act are included in the Sustainability statement. Also, it provides highlights related to executive remuneration and corporate governance. Detailed information on these topics can also be found in our separate reports and cross-references are made where relevant. In our 2024 Remuneration Report you will find a description of the work of our Remuneration Committee and our remuneration policy as well as a specification of remuneration to the members of the Executive Group Management Board and the Board of Directors. The report is prepared in accordance with section 139b of the Danish Companies Act. In our 2024 Corporate Governance Report you will find a description of our governance structure, the main elements of our internal controls related to financial reporting as well as our position on the Danish Corporate Governance Recommendations (the Recommendations). The report is prepared in accordance with the Recommendations. Annual reporting 2024 REPORTS Sustainability statement From 2024, the Corporate Sustainability Reporting Directive (CSRD) requires us to report on environmental and social activities and impacts as well as on how we incorporate sustainability in our governance framework. The new requirements have been adopted by the EU in a set of European Sustainability Reporting Standards (ESRS). We have prepared the Sustainability statement in the 2024 Annual Report in accordance with ESRS. Disclosures related to Environmental, Social and Governance (ESG) information are included in this section and is part of the man- agement review. As a result, we will no longer publish a separate Sustainability Report. 4 ISS at a glance Letter 5 Financial highlights 7 ESG highlights 8 Our service-centric business model 9 Our strategic choices 10 Strategic priorities 1 1 The ISS investment case 1 2 2025 Outlook 1 3 Five-year summary financials 14 Five-year summary ESG 15 Our performance Group results 1 8 Commercial development 20 Cash generation and free cash flow 21 Capital structure 22 H2 2024 24 Our regions 26 Northern Europe 27 Central & Southern Europe 28 Asia & Pacific 29 Americas 30 Country revenue 31 Our business OneISS strategy 34 Our people 36 Our business risks 38 Consolidated financial statements 104 Parent company financial statements 156 Statements Management statement 162 Independent auditor’s report 163 Independent auditor’s limited assurance report on the Sustainability Statement 166 Forward-looking statements and ESEF 168 Management review Financial statements 16 DIVERSITY & INCLUSION People with special educational needs on the path to a fulfilling career 32 WORKPLACE EXPERIENCE Addressing the global lack of employee engagement 101 SOCIAL When ISS is more than a job – Sampatti Chavan’s inspiring story 102 GOVERNANCE Engagement model with Diversey: enhancing operations and sustainability 41 SUPPORTING OUR CUSTOMERS’ NET ZERO JOURNEY Carbon reduction through energy management 50 PLACEMAKERS Championing age inclusivity in the workforce ISS case stories Content Annual Report 2024 Sustainability statement Content 52 General 53 Social 66 Environment 82 Governance 95 Other 99 Our governance Corporate governance 4 3 Diversity 46 Board of Directors 47 Executive Group Management 49 5 ISS at a glance Amid global challenges such as financial instability and geopolitical conflicts, the facility management industry is undergoing significant development, creating exciting opportunities. As a result of the economic slowdown, companies, organisations, and public institutions are increasingly outsourcing their facility management services. Importantly, this shift is not only driven by efficiency and cost savings requirements. One of the most pressing issues our customers face today is declining employee engagement in workplaces, which negatively impacts productivity, innovation, and employee retention. Consequently, they are seeking partners with the expertise to create exceptional workplace experiences. Another key trend is the growing focus on social sustainability. While the ESG agenda has traditionally centered on environmental priorities, the social dimension is gaining traction, prompting customers to prioritise social factors in facility management partnerships. These global trends present significant opportunities for ISS. Our expertise in integrated facility services, enhancing workplace experiences, our self-delivery model, and commitment to social sustainability position us for growth and a substantial increase in our 1 percent global market share. Refreshed strategic priorities leveraging our strengths The OneISS strategy was launched in 2020, and over the last four years, we have made significant progress in strengthening our foundation, commercial model, and execution power. We have achieved margin and growth recovery, successfully turned around challenging markets and contracts, completed the strategic divestment programme, made selective acquisitions, and maintained a high customer retention rate of over 93%. However, our growth in 2024 has mainly been driven by price increases and there is still room to improve focus and execution across the organisation. In response, we reviewed elements of our strategy in 2024, leading to updated strategic priorities in December. These updates will better position us to leverage our strengths and unlock ISS’s full potential. EGM changes fuelling strategy refresh In January 2025, we aligned the EGM with the updated strategic priorities to ensure implementation with pace and quality. This involved reducing the EGM to five members and adjusting the scope and responsibilities of some existing roles. We are confident these changes will reduce complexity, improve decision-making, and enhance execution to drive profitable growth. In addition to the changes made at the EGM, we were pleased to welcome Henriette Hallberg Thygesen as a new member of the Board of Directors in 2024. 2024 was an exciting year for ISS, as we sharpened our focus on value creation in a world marked by uncertainty but also new opportunities. While we met our financial targets, we are committed to driving stronger growth ahead. The strategy refresh launched in December, alongside changes in our Executive Group Management (EGM), marks a key step in this journey. We also made significant strides in advanc- ing social sustainability, reaffirming our commitment to people and communities. Unlocking ISS’s full potential LETTER Moving forward, we will pursue and invest in thoroughly selected opportunities at Group level while empowering our local markets to strengthen their positions and leverage their local expertise. “ Niels Smedegaard Chair Kasper Fangel Group CEO 6 ISS at a glance On a mission to create value As part of our strategy update, we have developed a new mission statement: We make space for people and businesses to thrive. While our purpose, Connecting people and places to make the world work better , remains at the core of ISS’s DNA, we also want to emphasise the value ISS strives to deliver to people and customers every day. This mission statement reflects our commitment to enhancing both physical and mental spaces, empowering people to unlock their individual potential – a key prerequisite for business success. Ultimately, our goal is to ensure that our people thrive – when they do, they feel motivated, which directly enhances the satisfaction and engagement of our customers and their employees. Financial targets achieved We are pleased to have delivered robust results throughout the year. Our steadfast efforts to improve operational efficiency and execution enabled us to achieve our 2024 financial targets: organic growth of 6.3%, operating margin of above 5.0% and free cash flow of DKK 2.0 billion. Commercially, we secured extensions for all large, key customer relationships with contracts ending in 2024, including scope expansions across several agreements. Most significantly, we secured a 5-year extension of our longstanding partnership with Barclays, where we will continue to provide integrated facility services and great workplace experiences to more than 80,000 Barclays employees across the world. We also successfully mobilised new large customer contracts, such as the Department for Environment, Food & Rural Affairs (Defra) in the UK and the Danish Building and Property Agency in Denmark. Another milestone was the landmark 7-year contract win with the UK Department for Work and Pensions (DWP) in August 2024, expected to generate annual revenue of DKK 1.2 billion. This achievement marks the culmination of the strong market position we have built within the UK public sector over the past years. Accelerating our social sustainability efforts With our people as our product, the social domain offers our greatest sustainability impact. With over 325,000 employees worldwide, each influencing around five family members, our work touches nearly two million lives daily. This scale brings both great responsibility and significant opportunities. As part of our strategy refresh, we have committed to becoming the world’s leading frontline employer, creating safe, inclusive workplaces where everyone is valued, fairly compensated, and supported in improving social mobility. This is not only the right thing to do but also essential for success: engaged employees deliver better services and superior customer experiences. We are pleased to have further advanced our social commitment in 2024. For example, we provided more than 38,000 placemakers or their family members with a certified qualification, encompassing a wide range of educational and training opportunities. This brings the total to over 70,000 qualifications awarded in the past two years, keeping us firmly on course to achieve our goal of 100,000 by the end of 2025. As education is a key driver for social change and employee engagement, we aim to provide an additional 250,000 placemakers and their family members with certified qualifications by 2030. We have also made progress in our commitment to increasing the implementation of the living wage across our industry. We have initiated pilots to measure the impact of salary increases on retention, productivity, and sickness rates. Additionally, we have partnered with UNIGLOBAL on a social sustainability project in Indonesia, focused on fostering social dialogue within the cleaning industry, educating customers on the difference between minimum and living wage, and creating job opportunities for women and people with disabilities in Greater Jakarta. Health and safety is a top priority for us, and we will continue improving our efforts to prevent serious accidents. Tragically, we experienced 1 fatality in 2024, deeply impacting the organisation. In 2024, we initiated further mitigating actions: We conducted our first Global Health Culture survey, followed by focus groups with placemakers worldwide to assess our safety culture and establish a baseline, with a safety culture improvement plan set to begin in 2025. We also introduced ‘safety stand-downs’ led by Kasper Fangel for all leaders to address serious incidents like fatalities. Towards sustainable growth In 2024, we took significant steps to further strengthen our organisation, enhance our execution, and deepen our focus on meeting the evolving needs of our customers. By leveraging our unique strengths, favourable market position, and strong social commitment, we have positioned ourselves for further success moving forward. Our commitment to profitable and sustainable growth remains steadfast, and with our refreshed strategic priorities, a clear mission statement, a more agile and stronger executive management team, and the dedication of our placemakers worldwide, we are ready to accelerate growth and capitalise on the exciting global opportunities. Moving forward, we will pursue and invest in thoroughly selected opportunities at Group level while empowering our local markets to strengthen their positions and leverage their local expertise. Across the company, our primary focus remains on driving profitable growth in both single-service cleaning and integrated facility services. Increase in excess capital returned to investors Based on our financial results in 2024, we are once again in a favourable position to share excess capital with our shareholders, in line with our capital allocation policy. The Board of Directors will propose a dividend for 2024 of 20% of adjusted net profit at the annual general meeting, corresponding to a dividend per share of DKK 3.1. In 2024, we also initiated a share buyback programme of DKK 1 billion, to be executed over a 12-month period. Due to our robust liquidity position, we decided to increase the programme in August and November bringing it to DKK 1.5 billion in total. It concluded on 19 February 2025. Additionally, we are today announcing that we will initiate a new share buyback programme of DKK 2.5 billion to be executed until 13 February 2026. M&A is an element of our clearly defined ambitions in the capital allocation policy, and we continuously seek opportunities to invest in our business to drive long-term sustainable growth. In 2024, we strengthened our presence in Switzerland and Spain through two smaller, local bolt-on acquisitions of gammaRenax and Grupo BN, respectively. These acquisitions reflect our clear and disciplined approach to M&A: they have a strong strategic fit, a country-wide footprint, and generate operational synergies for ISS. The divestment process regarding our French business was completed in April 2024, marking the final step in the divestment programme outlined in the OneISS Strategy. 7 ISS at a glance Organic growth Operating margin Free cash flow Annual Report 2023 4 - 6% > 5% > DKK 1.8bn Q1 2024 4 - 6% > 5% > DKK 1.8bn H1 2024 5 - 6% > 5% > DKK 1.8bn Q3 2024 5 - 6% > 5% > DKK 1.8bn Actual 2024 6.3% > 5.0% DKK 2.0bn Customer retention 93% Outlook 2024 Delivered Free cash flow 1) 2.0 DKKbn Operating margin 1) 5.0% Organic growth 1) 6.3% Free cash flow (DKKbn) Cash conversion (%) 1) Excluding the impact of IAS 29 1) Based on Operating profit before other items, excluding IAS 29 1) 1) Excluding restructurings and one-off costs For definitions , see 8.5, Definitions 1) Excluding the impact of IAS 29 1) Excluding the impact of IAS 29 Financial leverage 2.0x DKKbn DKKbn Revenue (DKKbn) Organic growth (%) Operating profit before other items (DKKbn) Operating margin (%) DKKbn % DKKbn Net debt (DKKbn) Net debt/Pro forma adjusted EBITDA 2024 performance Financial highlights 1) 8 ISS at a glance 2024 performance ESG highlights Lost Time Injury Frequency 2.9 Fatalities 1 Employee turnover 1) 32% Carbon emission 3,601 (2023: 2,622) Vehicles electrified Target: ~18,000 vehicles by 2030 13% CO 2 reduction (food) since 2019 baseline Target: 25% by 2030 Social A place to be you Governance Business ethics Read more on p. 66 Read more on p. 95 Environmental Reduce carbon emission Read more on p. 82 Female representation 20% (2023: 22%) Executive Group Management Target: 40% by 2025 37% (2023: 35%) Corporate leadership Target: 40% by 2026 43% (2023: 33%) Board of Directors Target: 40% reached in 2024 3% CO 2 reduction (total emissions) since 2019 baseline 49% Food waste reduction since 2019 baseline Target: 50% by 2027 Target: < 2.5 1) Includes leavers and resignations 9 ISS at a glance How we create value OUR SERVICE-CENTRIC BUSINESS MODEL The ISS brand Building on 120+ years legacy as a people company working with a strong belief that people can and do make a difference Our placemakers Given our self-delivery model, our 325,000+ engaged placemakers are the core enablers of our strategy Technology A key enabler for successful execution of our strategic priorities Relationships Our business is built on strong partnerships with customers and suppliers as well as unions and governments across the globe Financial capital A strong and efficient balance sheet and liquidity position to support strategic and operational needs Operational assets An asset-light business model with operational assets such as vehicles and cleaning machines, the majority of which are leased Our placemakers A Place to Be You – at ISS, you can be who you are, become what you want, and be part of something bigger Our customers and end-users A preferred partner for customers prioritising workplace experience. We provide insights to drive user experience, efficiency and standardisation with sustainable and compliant solutions Our shareholders Strong growth and sustainable margins combined with disciplined capital allocation drives attractive shareholder return Society and the planet We contribute to the social and environmental agenda by offering workplaces where everyone has opportunities to advance their social mobility. We minimise the impact on the planet by reducing energy, carbon, water and waste Our suppliers Across a diverse supplier base we engage, develop and enhance mutually beneficial relationships ranging from global strategic partnerships to local micro niche suppliers We create value for Integrated Facility Services (IFS) We depend on Cleaning Food Technical 10 ISS at a glance Customer segments Geographic presence Office-based 40% Financial services Professional services Technology Integrated Facility Services (IFS) Single Service Cleaning Northern Europe 37% Production-based 23% Life sciences Industry & Manufacturing Food & Beverage Healthcare 14% Other 23% % of Group revenue excluding global managed services (1%) 50,000+ Sites ~30 Self-delivery countries 325,000+ Placemakers 40,000+ Customers Grow IFS and Single Service Cleaning OUR STRATEGIC CHOICES For more details on our strategy, see p. 34 Core services Cleaning 42% ISS’s heritage Global leader Technical 23% Critical for key accounts Growth opportunities Food 15% Drives user experience Opportunity for new offerings Other 20% Central & Southern Europe 33% Asia & Pacific 17% Americas 12% 11 ISS at a glance Efficiency Workforce management Finance shared service centre Leading frontline employer Digital recruiting, onboarding and data analytics Social sustainability 2020-2024 5 priorities 2025 3 global priorities Commercial momentum and segment leadership Carried forward to become part of the Customer centric growth priority Brilliant operating basics Inflation management and operational excellence continues as part of Efficiency Service products built on leading technology platforms Focus shifts from technology leadership to technology as an enabler for our business, i.e. our people and our customers Environmental sustainability Embedded in our operating model and we continue to strive for progress on our own commitments while supporting our customers in theirs Safe, diverse and inclusive workplaces Becomes part of the Leading frontline employer priority and the social sustainability global initiative to be an enabler of belonging and social mobility Technology- enabled Customer centric growth Drive new wins Develop unique selling propositions Unlocking ISS’s full potential STRATEGIC PRIORITIES The OneISS strategy was launched in 2020, and over the last four years, we have made significant progress in strengthening our foundation and execution power. We have achieved margin and growth recovery, successfully turned around challenging markets and contracts and completed the strategic divestment programme. While significant progress has been made, commercially we have not achieved the success we anticipated. At the same time, we have seen shifts in the market and our customers’ needs, and there is still room to improve focus and execution. In 2024, we conducted a review of our strategy, which confirmed the overall direction and our focus on growing our Integrated Facilities Services and Single Service Cleaning businesses across the markets we operate in. To sharpen execution, we have updated our strategic priorities – from five priorities launched in 2020 to three priorities – which will be our focus going forward: Customer centric growth Leading frontline employer Efficiency We firmly believe that these updates will better position us to leverage our strengths, support profitable growth and unlock ISS’s full potential. For more details on our strategy, see p. 34 12 ISS at a glance Driving shareholder return THE ISS INVESTMENT CASE With a favourable and expanding market outlook, we are well-positioned to create value for our shareholders. The IFS market is expected to outgrow GDP, and through a sharper focus on customer centric growth, a relentless focus on efficiency and a stronger commitment to social sustainability, we are set to deliver robust organic growth, attractive and sustainable margins, and solid, growing cash returns going forward. Capitalising on market growth The FM market, valued at USD 1.3 trillion, is projected to grow faster than GDP and remains highly fragmented. As a market leader, ISS is uniquely positioned to capitalise on consolidation opportunities and become the preferred partner for customers prioritising workplace experience to attract, engage and retain employees. Low engagement in the workplace negatively impacts both employee productivity and the broader economy, and ISS is committed to improving workplace experiences to foster a more engaged, productive workforce. Customers are seeking three key solutions that we are well- positioned to deliver: efficiency and standardisation/price; exceptional customer experience; and sustainability. As a people-focused company, we recognise that a thriving workforce is essential, and we are committed to creating environments where people and businesses can thrive. With a strong legacy in facility management and a service- centric self-delivery model, ISS holds a competitive edge, both locally and globally. As hybrid work models continue to shape the future, we are working closely with customers to enhance the workplace experience, investing in high-quality, employee-centric environments that promote productivity, collaboration, and a sense of cultural belonging. This approach will be a key driver of ISS’s growth, ensuring our services meet the evolving needs of the workforce. Strong commercial focus Our strategy focuses on four key segments – Financial Services, Professional Services, Technology, and Life Sciences – where employee engagement is important for customers’ business performance and where we have built strong capabilities and deep expertise in addressing specific customer needs. This allows us to serve as a strategic partner, giving us a distinct competitive advantage. As our customers evolve their workplace strategies for the future, we are seeing growing demand for our expertise in workplace design. Should attractive opportunities arise outside these four segments, local markets may pursue them, provided they are subject to a lucrative business case with a well-understood and reasonable risk exposure. Capital allocation Our capital allocation policy remains un- changed. We will stringently allocate capital by fulfilling four clear ambitions in prioritised order: Maintaining an investment grade rating Our first priority which we will adhere to with a financial leverage of 2.0x-2.5x net debt / pro forma adjusted EBITDA Dividends We will commit to an annual dividend pay-out ratio of 20-40% of adjusted net profit for the financial year Investments We will continue to invest in our business to drive long-term sustainable growth. We are committed to value-creating M&A and will consider and evaluate opportunities to build an M&A pipeline, or enhancements of the existing business Share buybacks We will distribute excess cash to our share- holders by means of share buybacks 2024 capital allocation highlights, see p. 22. Financial targets 2024 & beyond Organic growth 4-6% Operating margin > 5% Cash conversion > 60% Sustainable growth, ESG focus and strong cash generation The FM market is expected to outgrow GDP going forward. ISS is a strong business operating in a stable market. Our enhanced focus on segmentation, commitment to social sustainability and sharpened commercial mindset will continue to drive us in the right direction – towards a company that delivers stable growth, with a margin floor of 5% and solid, growing cash returns. 13 ISS at a glance In 2024, ISS completed a wide-ranging review to update the OneISS strategy to drive further growth in the years to come. The strategic direction remains unchanged, but the updated strategic priorities are set to release the untapped potential for ISS, including a reduction in the size of Executive Group Management leading to shorter decision times. The outlook for 2025 assumes that macroeconomic and geopolitical uncertainties remain elevated, at the same time making ISS’s business model more relevant than ever. The execution of the OneISS strategy through our updated strategic priorities continues and will support the commercial growth agenda, enable further cost efficiencies and ensure continued high focus on driving shareholder value. The outlook is excluding any effects of hyperinflation (IAS 29). Organic growth is expected to be 4-6% for 2025 driven by price increases across the Group to offset cost inflation and protect operating margins. As we focus on growing with our customers, and see high activity levels at our customers’ sites, we expect volume growth to be positive. We also expect net new wins to be a positive contributor and the bid pipeline to develop positively in 2025. Impact from projects and above-base work is expected to contribute negatively to growth given the extraordinarily high levels in Q4 2024 driven by the hurricane response and restoration work in the US. Operating margin is expected to be above 5% as we continue to invest in future growth opportunities. Across the Group, we expect to see further operational improvements and efficiencies, including scale benefits. Our focus is on increasing nominal operating profit before other items and thereby driving increased shareholder value. 1) Based on operating profit before other items 2) The forecasted average FX rates for 2025 are calculated using the actual average FX rate for January 2025 and the average forward FX rates (as of 17 February 2025) for the remaining eleven months of 2025 The expectation for free cash flow is based on an underlying free cash flow of above DKK 2.6 billion, equaling a cash conversion of above 60%. However, adjusted for DKK 0.2 billion in prepayments for services not yet rendered and receivables paid before due date, the reported free cash flow is expected to be above DKK 2.4 billion for 2025. Assuming payments withheld by Deutsche Telekom (DTAG) in 2024 are received in 2025, reported free cash flow is expected to be above DKK 3.0 billion, refer to p. 19 for further on DTAG. Acquisitions and divestments, net ~ 0.5%-point (positive) Based on acquisitions and divestments completed by 15 February 2025 (including in 2024). Foreign exchange rates ~ 1%-point (negative) 2) Based on current exchange rates, excluding any effects of hyperinflation (IAS 29). Organic growth 4 – 6% Free cash flow > DKK 2.4 billion (2024: DKK 2.0 billion) (2024: 6.3%) (2024: 5.0%) Operating margin 1) > 5% Other revenue impacts The outlook should be read in conjunction with Forward-looking statements, p. 168 and Our business risks, pp. 38-40. For Definitions, see p. 155. 2025 Outlook 2025 OUTLOOK 14 ISS at a glance FIVE-YEAR SUMMARY Financials (DKKm unless otherwise stated) 2024 2023 2022 2021 2020 Results Revenue, excl. IAS 29 83,005 78,683 73,684 n/a n/a Revenue 83,761 78,681 73,838 71,363 70,752 Operating profit before other items, excl. IAS 29 4,155 3,348 2,947 1,776 (3,203) Operating profit before other items 4,143 3,300 2,918 1,776 (3,203) Operating profit 3,889 3,138 2,904 1,701 (4,707) EBITDA before other items 5,612 4,717 4,333 3,536 (1,363) EBITDA 5,449 4,624 4,388 3,525 (2,778) Pro forma adjusted EBITDA 5,585 4,789 4,375 3,568 (1,349) Finance costs, net (590) (607) (384) (656) (549) Net profit from continuing operations 2,641 1,977 2,115 536 (5,220) Net profit from discontinued operations (52) (1,652) 21 101 25 Net profit 2,589 325 2,136 637 (5,195) Net profit (adjusted) 2,876 2,120 1,940 611 (3,716) Cash flow Cash flow from operating activities 3,727 3,392 3,333 3,221 (361) Acquisition of intangible assets, property and equipment, net (619) (703) (779) (586) (681) Free cash flow, excl. IAS 29 1,994 1,791 1,726 1,735 (1,794) Free cash flow 1,996 1,775 1,734 1,735 (1,794) Financial position Total assets 50,641 47,693 47,005 43,655 43,605 Goodwill 20,501 19,696 20,450 19,753 19,662 Additions to property and equipment, right-of-use assets 1,432 1,302 1,110 1,194 1,173 Equity 11,913 10,522 10,815 7,789 6,545 Net debt 11,340 10,548 11,540 13,451 15,802 For definitions , see 8.5, Definitions, p. 155 (%, unless otherwise stated) 2024 2023 2022 2021 2020 Financial ratios Organic growth 6.3 9.7 8.4 2.0 (6.6) Acquisitions/divestments, net 1.0 0.5 (5.8) (0.5) (0.2) Currency adjustments (0.8) (3.6) 0.9 (0.6) (2.1) Total revenue growth 6.5 6.6 3.5 0.9 (8.9) Operating margin, excl. IAS 29 5.0 4.3 4.0 2.5 (4.5) Operating margin 4.9 4.2 4.0 2.5 (4.5) Cash conversion 48.2 53.8 59.4 97.7 56.0 Equity ratio 23.5 22.1 23.0 17.8 15.0 Net debt/Pro forma adjusted EBITDA 2.0x 2.2x 2.6x 3.8x (11.7)x (Number 000) 2024 2023 2022 2021 2020 Shares Shares issued 185,668 185,668 185,668 185,668 185,668 Treasury shares 9,220 332 938 970 970 Average shares (basic) 180,954 185,334 184,730 184,698 184,698 Average shares (diluted) 183,358 187,954 187,243 186,003 185,136 (DKK) 2024 2023 2022 2021 2020 Shares ratios Basic earnings per share (EPS) 14.3 1.5 11.1 3.3 (28.2) Diluted EPS 14.1 1.5 11.0 3.3 (28.2) Basic EPS (continuing operations) 14.5 10.4 11.0 2.8 (28.3) Diluted EPS (continuing operations) 14.4 10.3 10.9 2.8 (28.3) Proposed dividend per share 3.1 2.3 2.1 - - 15 ISS at a glance Five-year summary ESG Social 2024 2023 2022 2021 2020 Workforce Number of employees (end of period) 326,483 352,749 351,053 354,636 378,946 Number of employees (average) 331,539 349,086 352,792 362,789 428,949 Full time, % 79 77 77 76 75 Part time, % 21 23 23 24 25 Placemakers, number 304,913 327,548 332,562 333,102 357,021 Placemakers, % 93 93 95 94 94 Male, % 51 51 53 52 52 Female, % 49 49 47 48 48 Support staff, number 21,570 25,222 18,491 21,535 21,926 Support staff, % 7 7 5 6 6 Male, % 56 57 55 56 57 Female, % 44 43 45 44 43 Permanent employees, % 89 - - - - Temporary employees, % 8 - - - - Non-guaranteed hours employees, % 3 - - - - Employee turnover, % 1) 32 33 33 30 33 Placemakers, % 33 34 33 31 34 Male, % 35 35 35 32 37 Female, % 31 32 32 30 30 Support staff, % 20 21 23 18 17 Male, % 21 21 22 19 18 Female, % 20 22 23 18 17 Training hours 3,589,281 3,577,755 4,336,538 4,124,191 3,749,859 Average per employee 1) 11 10 12 11 9 Health, safety & wellbeing Fatalities 1 5 1 5 3 LTIF 1) 2.9 3.1 2.9 2.7 2.5 Absentee rate, % 3.0 2.9 3.0 2.8 2.5 Incidents of discrimination 82 16 22 14 16 Employee engagement score, % 74 - - - - Female representation Board gender diversity (female, %) 43 33 33 43 43 Corporate leadership diversity (female, %) 37 35 36 35 - 1) Calculated on average number of employees. 2) For 2020 and 2021 no fuel split on diesel and petrol was reported. Environment 2024 2023 2022 2021 2020 Emissions (tCO 2 e) Scope 1 56,592 66,153 69,581 71,726 70,084 Scope 2 (location-based) 5,594 6,205 10,250 8,120 Scope 2 (market-based) 10,131 10,301 7,084 11,838 7,390 Scope 3 1,613,854 1,617,882 1,520,341 - - Total (location-based) 1,676,040 1,690,240 1,600,172 - - Total (market-based) 1,680,576 1,694,336 1,597,006 - - Scope 3 Purchased G&S (Cat 1) 802,170 710,897 692,291 - - Fuel & energy (Cat 3) 17,820 20,968 17,106 - - Employee commuting (Cat 7) 340,374 480,207 473,939 - - Use of sold products (Cat 11) 371,138 329,984 264,055 - - End of life treatment (Cat 12) 57,255 56,028 55,420 - - Other 25,097 19,798 17,530 - - GHG intensity (tCO 2 e/mDKK) 20.06 21.53 21.63 - - Energy Diesel (m ltr) 2) 16.8 18.9 23.6 27.4 30.3 Petrol (m ltr) 7.4 6.5 2.6 - - Other fuel (m ltr) 3.1 0.2 - - - Gas (MWh) 1,618 1,818 2,519 2,557 - Electricty (MWh) 27,240 26,641 29,262 22,906 29,133 For vehicles (MWh) 5,190 3,131 1,243 - - Steam (MWh) 119 97 134 - - Cooling (MWh) 554 438 521 212 - Heat (MWh) 10,942 11,508 13,445 11,018 - Other Vehicles, number 18,260 19,612 18,029 18,393 24,309 Electric/hybrid 3,601 2,622 1,606 Water (m 3 ) 115,972 130,192 105,769 145,948 207,071 Governance 2024 2023 2022 2021 2020 Board meeting attendance % 92 94 90 95 96 Group Speak Up, number 552 424 366 337 285 For definitions , see p. 57 16 CASE With diversity and inclusion being at the heart of ISS, we want to provide everyone with an opportunity to develop their careers and fulfil their potential. ISS Hong Kong embodies this approach with SHINE@ISS – a specialised talent programme dedicated to supporting young individuals with special educational needs (SEN). There are generally very limited job opportunities for people with disabilities in Hong Kong, particularly in the facility management sector, so we are delighted to be able to offer young people with SEN the chance to take a positive step forward in their careers. As part of the programme, we provide 12 young people with three weeks of training before placing them into full- time roles at ISS Hong Kong. Since the beginning in 2019, SHINE@ISS has developed from us only having referrals for potential members from SEN schools to now where we also work with the Hong Kong government and NGOs to create the most effective and efficient programme. Programme handlers, social workers, supervisors and ISS volunteers all work together to support the members and ensure they are integrated seamlessly. Shine@ISS is a one-year programme for each cohort and last year we had a retention rate of close to 75%. We are proud to say that since its inception in 2019, ISS Hong Kong has hired 59 people who have been part of the programme. SHINE@ISS can also serve as a vehicle for change for the wider industry, says Vicki Tang, the Manager of our partner NGO, the Hong Kong PHAB Association, praising our approach of collaboration and unity to promote inclusive employment. The Regional Manager for the Labour Department’s Selective Placement Division, Kelvin Chan, is also hopeful that the programme will encourage private sector businesses to offer more opportunities for young people with SEN. We are proud to be at the forefront of this movement and SHINE@ISS represents everything we strive to be as an organisation – A Place to Be You, which is an integral part of our social sustainability agenda. People with special educational needs on the path to a fulfilling career DIVERSITY & INCLUSION “SHINE is one of the inclusive programmes from Hong Kong to influence and create a positive impact to a bigger group of people, not just only within ISS but also to society. This programme reflects our ISS values, defines who we are and what we stand for. I would encourage everyone in championing this initiative and living our values every day.” Vincent Ma Country Manager, ISS Hong Kong 59 hired since 2019 1,340+ training hours in cohort 2023-2024 ~75% retention rate in cohort 2023-2024 SHINE@ISS programme Our performance 18 Our performance In a world marked by macroeconomic uncer- tainty, ISS continued to deliver operational and financial progress in 2024. This was not least due to successful implementation of price increases and higher activity levels at customer sites, but also broad-based efficiency improvements and cost reductions from the continued execution of the OneISS strategy as well as notable improve- ments in the UK and on the Deutsche Telekom contract. As a result, we delivered improved operating results for the fourth consecutive year and achieved our financial targets for all three financial KPIs. Revenue Group revenue was DKK 83.8 billion, an increase of 6.5% com- pared with 2023. Organic growth was 6.3%, the impact from acquisitions and divestments, net was 1.0%, whereas currency and other effects were negative 0.8%, including the impact of hyperinflation in Türkiye of 1.0%. Organic growth momentum slowed down over the year as ex- pected from 6.0% in Q1 to 4.8% in Q3, but then picked up in Q4 ending at 8.3%, largely driven by projects and above-base work, including the significant hurricane response and restoration work performed in the US. Price increases contributed around 6.1% to organic growth of which around half was related to price increases implemented in Türkiye. Across the Group, cost inflation remained relatively high, though decreasing compared to 2023, predominant- ly driven by adjustments to minimum wages and collective agreements. We continued to successfully mitigate this effect through implementation of price increases to customers in accordance with contractual terms. Volume growth contributed around 0.5%-point to organic growth driven by a combination of increased activity levels at customer sites and expansion of contracts with existing cus- tomers, mainly in Northern Europe and Asia & Pacific. Net contract wins were supported by significant start-ups in Q2 with Defra in the UK and the Danish Building and Property Agency in Denmark. However, as a result of deliberate exits of contracts in 2023 and 2024, most notably in Americas and Asia & Pacific, growth was negative by around 1%-point. Revenue from projects and above-base work accounted for 16% (2023: 16%) of Group revenue and contributed around 1% to organic growth for the Group. This impact was mainly driven by Americas, due to the hurricane response and restoration work in the US as well as broad-based growth in Northern Europe. Revenue from key account customers grew organically by 6.1%, mainly resulting from price increases, increased activity levels at customers’ sites and customers’ investments in work- places. Key accounts accounted for 71% of Group revenue in 2024 (2023: 71%). All regions contributed to the positive organic growth in 2024. Central & Southern Europe reported double-digit growth mainly due to price increases and volume growth in Türkiye. In Northern Europe growth was largely driven by increased activity levels at customers’ sites and start-up of contracts in the UK and Denmark. Asia & Pacific was mainly supported by solid growth in Australia and Singapore offset by a decrease in projects and above-base work as demand for Covid-19 related work ceased in 2023. In Americas, growth was held back by the deliberate contract exits in 2023 and 2024, especially with an industry and manufacturing customer in the US, though offset by price increases and significant above-base work related to the hurricane response and restoration work. Group results Revenue (DKKm) 2024 2023 Organic growth Acq./ div. Currency & other adj. Revenue Growth Northern Europe 31,328 29,324 6% (0)% 1% 7% Central & Southern Europe 27,159 24,807 11% 4% (6)% 9% Asia & Pacific 14,403 14,229 2% (0)% (1)% 1% Americas 9,407 9,605 0% - (2)% (2)% Other countries 767 783 (5)% - 3% (2)% Corporate / eliminations (59) (65) - - - - Group, excl. IAS 29 83,005 78,683 6.3% 1.0% (1.8)% 5.5% Group 83,761 78,681 6.3% 1.0% (0.8)% 6.5% Organic growth building blocks Portfolio and above-base % % Portfolio revenue, organic growth Projects and above-base work, organic growth 19 Our performance Operating profit before other items Operating profit before other items amounted to DKK 4,143 million for an operating margin of 4.9% (2023: 4.2%). Excluding the effect from hyperinflation in Türkiye (IAS 29), operating profit before other items was DKK 4,155 million leading to an operating margin of 5.0% (2023: 4.3%). The increase in operating margin was broad-based and driven by continued operational improvements, efficiencies and cost savings initiatives across the Group. Furthermore, operating leverage from the higher revenue impacted margin positively. In addition, margin benefitted from certain one-off income in Asia & Pacific, though partly offset by non-recurring costs at corporate level. On the Deutsche Telekom contract and in the UK, operational and financial improvements continued during the year, and thus both contributed to the Group’s margin enhancement. Despite solid improvement in 2024, both remained dilutive to the Group operating margin. For the Deutsche Telekom contract, the arbi- tration process initiated by ISS regarding certain contractual dis- agreements progressed according to plan. The final oral hearing in the arbitration proceedings is scheduled to take place in mid July 2025 as further described in the right-hand column. Inflation rates generally decreased compared to 2023, however, continued to impact our cost base, mainly due to increasing minimum wages and collective wage agreements. ISS has strong and well-embedded processes in place, and price in- creases were implemented in line with contractual agreements. Combined with operational efficiencies, the effect from inflation was, like previous years, mitigated, and the operating margin was largely unaffected. From a regional perspective, margin improvements were broad-based, with all regions delivering margin increases compared to last year, largely achieved through realisation of OneISS efficiencies and operating leverage from the higher revenue. Central & Southern Europe contributed most to the improve- ment, driven by generally solid developments, most significantly in Switzerland and Türkiye, and continued operational improve- ments on the Deutsche Telekom contract. Northern Europe benefitted from general efficiencies and margin improvements across the region, in particular Denmark and Finland, as well as continued progress in the UK. In the Americas, margin im- provements were achieved across the region, mainly as a result of deliberate exits of contracts in 2023 and 2024 in the US. In Asia & Pacific margin increased due to continued operational efficiencies and positive effects from certain one-off items in Australia and Singapore. Corporate costs amounted to DKK 1,124 million corresponding to 1.3% of Group revenue (2023: 1.4%). The development mainly reflected savings and efficiencies following the OneISS strategy review by the end of 2023, though partly offset by certain related one-off costs in 2024 at corporate level as well as additional costs related to transition of transactional services to the Group’s shared services centre in Gdansk, Poland. Other income and expenses, net Other income and expenses, net was an expense of DKK 163 mil- lion (2023: expense of DKK 93 million), mainly due to a reassess- ment of the contingent consideration related to the disposal of the 40% minority stake in ISS Türkiye in 2021 and an additional loss related to the divestment of Specialized Services in the US in prior years. Operating profit before other items (DKKm) 2024 2023 Northern Europe 1,803 5.8% 1,572 5.4% Central & Southern Europe 1,867 6.9% 1,487 6.0% Asia & Pacific 1,032 7.2% 875 6.1% Americas 547 5.8% 489 5.1% Other countries 30 3.9% 48 6.1% Corporate / eliminations (1,124) - (1,123) - Group, excl. IAS 29 4,155 5.0% 3,348 4.3% Group 4,143 4.9% 3,300 4.2% Deutsche Telekom AG Arbitration process In July 2019, ISS and Deutsche Telekom AG (DTAG) commenced the 10.5-years FM contract under which ISS delivers integrated facility services to more than 8,000 DTAG sites across Germany. In the early stages of the contract, financial performance was negatively impacted by a complicated IT migration and operational challenges which led to a material cost overrun. Subsequently, ISS Germany has worked intense- ly on improvements and has strengthened the operational and financial performance of the contract. However, the contract remains struc- turally challenging and performance is dilutive to the Group operating margin. As previously informed, ISS and DTAG have certain contractual disagreements. In December 2022, ISS has initiated the establishment of an Arbitration Tribunal under the German Institute of Arbitration (DIS) to decide on these disagree- ments. The final oral hearing in the arbitration proceedings is scheduled to take place in mid July 2025. In the proceedings, ISS and DTAG have exchanged claims against each other. ISS has claimed remuneration for services performed. DTAG has disputed the claims and is with- holding certain payments to ISS related to the services delivered. Operating profit Operating profit was DKK 3,889 million (2023: DKK 3,138 mil- lion), and thus grew 24% compared to 2023. Finance income and costs, net Finance costs, net amounted to DKK 590 million (2023: DKK 607 million) including a non-monetary gain of DKK 86 million relating to hyperinflation restatement (IAS 29) in Türkiye (2023: DKK 87 million). Excluding the impact of IAS 29, finance costs, net were DKK 676 million (2023: DKK 694 million). The decrease was primarily due to higher interest income on the proceeds from the bonds issued in May 2024 until repayment of the bonds maturing in December 2024. Furthermore, foreign exchange losses decreased DKK 77 million, primarily due to TRY depreciating 11% against DKK (2023: 39%). These were partly offset by an increase in interest expenses on borrowings driven by issuance of new EMTNs in May 2024 and increased interest rates throughout 2024. Income tax Income tax amounted to DKK 658 million (2023: DKK 554 million), resulting in an effective tax rate of 20.0% (2023: 21.9%). The effective tax rate was favourably influenced by interest limitation rules and release of valuation allowances on deferred tax assets in Germany, whereas hyperinflation adjustments (IAS 29) in Türkiye impacted negatively. Net profit from discontinued operations Net profit from discontinued operations was a loss of DKK 52 million (2023: loss of DKK 1,652 million) and related to the loss generated in ISS France up until the divestment was completed on 9 April 2024. Net profit Net profit was DKK 2,589 million (2023: DKK 325 million). 20 Our performance In 2024, ISS successfully extended several long-standing and strategically important customer relationships such as the global contract with Bar- clays and the contract with Nordea in the Nordics. We also extended and expanded several local and regional key account contracts across the Group. De- spite the loss of a customer in the UK in the Business Services & IT segment, and some deliberate exits of non-accretive contracts, especially in Americas and Asia & Pacific, our retention efforts secured a cus- tomer retention rate in 2024 of 93% (2023: 95%). Furthermore, ISS won three large new key account contracts in the UK, the most significant win being the 7-year contract, with a 3-year extension possibility, with the Department of Work and Pensions (DWP). Annual revenue of the contract is expected to be around DKK 1.2 billion or 1.4% of Group revenue. Under the contract ISS will be delivering IFS across more than 800 sites in the UK starting from October 2025. Mobilisation of the contract was initiated in October 2024 and is progressing according to plan. In addition, across the Group we secured wins of several smaller and mid-sized local IFS contracts. While we are pleased with the retentions secured and the specific contracts won during the year, we acknowledge that the level of new contract wins has been disappointing. In response, we reviewed elements of our strategy late 2024 leading to updated strategic priorities in December, one being “Customer-centric growth”. Through this we will amplify our focus on targeting the right customers with unique selling propositions. As a consequence, we have re-prioritised our global customer segments and will focus our global expertise on customers operating in knowledge-based industries: Financial services Professional services Technology Life sciences Commercial development This is where greater value is placed on our people, including social sustainability, as that is driving engagement and consistent exceptional service experience to our customers. Thus, our self-delivery model will provide us with a competitive advantage and become a key differentiator in the market going forward. To maximise growth, we will continue to pursue growth oppor- tunities in local markets outside our global segments based on local capability and market profile. Please refer to OneISS strategy, p. 34 for further background. Contract maturity The majority of our key account contracts have initial terms of three to five years. A significant share of revenue is conse- quently up for renewal every year. In 2024, revenue from large key accounts was DKK 28.0 billion or 33% (2023: 33%) of Group revenue. Going into 2025, contract revenue of DKK 4.8 billion (6% of Group revenue) is up for renewal (adjusted for renewals up until 20 February 2025). Maturity – large key accounts (>200 DKKm) 28.0 DKKbn 2024 contract developments 1) Countries Segment Term Effective Wins Healthcare customer UK Healthcare 5 years Q2 2024 North London Mental Health Hospital UK Healthcare 5 years Q3 2024 Aviation customer Finland Transportation & Infrastructure 4 years Q4 2024 Industry & Manufacturing customer Türkiye Industry & Manufacturing 3 years Q1 2025 Department for Work and Pensions UK Public Administration 7 years Q4 2025 Extensions/expansions Healthcare customer Türkiye Healthcare 3 years Q4 2023 Industry & Manufacturing customer Global Industry & Manufacturing 2 years Q1 2024 Energy & Resources customer Sweden Energy & Resources 2 years Q1 2024 Nordea Nordics Business Services & IT 5 years Q1 2024 Healthcare customer Singapore Healthcare 5 years Q1 2024 Banking customer Spain Business Services & IT 3 years Q1 2024 Banking customer Switzerland Business Services & IT 6 years Q2 2024 Barclays Global Business Services & IT 5 years Q2 2024 Nestlé Australia Food & Beverage 2 years Q2 2024 Healthcare customer UK Healthcare 6 mths Q2 2024 Tan Tock Seng Hospital Pte Ltd Singapore Healthcare 1 year Q3 2024 Energy & Resources customer Australia Energy & Resources 5 years Q3 2024 Retail customer UK Retail & Wholesale 1 year Q3 2024 Professional Services customer UK Business Services & IT 5 years Q4 2024 Roy Hill Holdings Australia Energy & Resources 5 years Q4 2024 Pharmaceutical customer Belgium & Lux. Pharmaceuticals 5 years Q4 2024 Public Administration customer Austria Public Administration 5 years Q4 2024 Banking customer Global Business Services & IT 7 years Q4 2024 Healthcare customer UK Healthcare 15 mths Q1 2025 Real Estate customer Hong Kong Real Estate 2 years Q1 2025 BHP Nickel West Australia Energy & Resources 1 year Q1 2025 Airport Authority Hong Kong Transportation & Infrastructure 3 years Q1 2025 Industry & Manufacturing customer (Scope reduction) Global Industry & Manufacturing 5 years Q1 2025 NSW Whole Of Government - PARENT Australia Public Administration 1 year Q1 2025 Canberra Health Services Australia Healthcare 3 years Q1 2025 Banking customer Global Business Services & IT 5 years Q1 2025 Healthcare customer (Scope expansion) US Healthcare 5 years Q1 2025 SA Health Australia Healthcare 2 years Q1 & Q2 2025 Swisscom AG Switzerland Information and Communication 7 years Q2 2025 Exits/losses Healthcare customer Türkiye Healthcare Q1 2024 Professional Services customer UK Business Services & IT Q2 2024 Industry & Manufacturing customer US & Canada Industry & Manufacturing Q4 2024 Banking customer Mexico Business Services & IT Q4 2024 1) Annual revenue above DKK 100 million 17% Expiry 2025 15% Expiry 2026 23% Expiry 2027 0 7% Expiry 2028 38% Expiry 2029+ 21 Our performance Free cash flow Free cash flow amounted to DKK 1,996 million (2023: DKK 1,775 million). The increase was mainly driven by the positive operating profit performance stemming from the general margin improvement. The tight management of working capital was maintained but the high revenue growth meant that changes in working capital were an outflow. Furthermore, lower investments in software and equipment contributed positively though partially offset by an increase in additions of right-of- use assets compared to 2023. Cash flow from operating activities Cash flow from operating activities was DKK 3,727 million (2023: DKK 3,392 million), mainly driven by the improved operating profit before other items and reduced outflow from changes in provisions, though partly offset by a negative impact from changes in working capital and higher tax payments. Changes in working capital was an outflow of DKK 495 million (2023: inflow DKK 196 million) mainly related to increasing trade receivables due to revenue growth, including in Türkiye, where payment cycles are longer than the Group average, as well as due to adverse effects of Deutsche Telekom withholding certain payments relating to the ongoing contractual dispute. This was partly offset by an inflow related to changes in payables, which decreased compared to 2023 where a positive effect was achieved through general optimisation of supplier payment terms. Utilisation of factoring increased slightly to DKK 1.53 billion (2023: DKK 1.45 billion) as a result of increasing revenue from key account customers, where invoices, in accordance with Group policy, are eligible for factoring. Cash generation and free cash flow Changes in provisions, pensions and similar obligations were an outflow of DKK 380 million (2023: outflow of DKK 468 million), primarily due to ordinary payments related to pensions and sim- ilar obligations, restructuring projects initiated in prior years and payments related to certain legal claims and disputes. Interest paid, net amounted to DKK 464 million (2023: DKK 458 million), which was largely in line with 2023. Income tax paid was DKK 462 million (2023: DKK 428 million) equaling a cash tax rate of 14.0% (2023: 16.9%). Cash flow from investing activities Cash flow from investing activities was an outflow of DKK 1,536 million (2023: DKK 1,042 million). Acquisitions was an outflow of DKK 510 million (2023: DKK 373 million), primarily related to the acquisitions of Grupo BN in Spain, gammaRenax in Switzerland and Bluebridge in Belgium. Divestments was an outflow of DKK 350 million (2023: inflow DKK 25 million) comprising divestment-related costs as well as cash and cash equivalents in the divested balance sheet of ISS France. The divestment was completed on 9 April 2024, see further details in note 3.4 Discontinued operations and divestments. Investments in intangible assets, property and equipment, net, of DKK 619 million (2023: DKK 703 million) was equal to 0.7% (2023: 0.9%) of total revenue. The decrease was partly due to timing effects of investments, but also due to a lower level of software investments in line with the refocusing of the Group’s IT strategy. Cash flow from financing activities Cash flow from financing activities was an outflow of DKK 1,405 million (2023: outflow of DKK 1,334 million), mainly as a result of the Group’s decision to distribute excess cash to sharehold- ers in the form of the share buyback programme initiated in February 2024 and dividend payments approved at the AGM in April 2024. Proceeds from issuance of bonds of DKK 3,696 million related to the Group’s issue of EMTN bonds in May 2024 for a principal amount of EUR 500 million. The facility replaced the EUR 300 million EMTN bonds that matured in December 2024. Repayment of bonds amounted to DKK 2,237 million and relat- ed to the repayment of the EUR 300 million EMTNs maturing in December 2024 mentioned above. Repayment of lease liabilities was DKK 963 million (2023: DKK 791 million), increasing mainly due to new lease agreements (vehicles and equipment) for start-up of new customer con- tracts in 2023 and 2024. Dividend payments amounted to DKK 425 million (2023: DKK 390 million). Free cash flow Net debt DKKbn DKKbn 1) From continuing operations 22 Our performance Capital structure Our primary capital allocation priority is to ensure a strong and efficient balance sheet and that our liquidity position supports operational needs, financial flexibility and our continued strategy execution, while maintaining our investment grade rating. The Group’s liquidity position remained strong in 2024, driven by the solid free cash flow generation. As a result, the Group’s liquidity reserves increased to DKK 12.8 billion at 31 December 2024 (2023: DKK 12.1 billion), see note 4.5 to the consolidated financial statements. On 29 May 2024, the Group successfully issued a 5-year EMTN bond for a principal amount of EUR 500 million with a nom- inal interest rate of 3.875%. The net proceeds were used for repayment of the EUR 300 million EMTN bond that matured in December 2024 as well as for general corporate purposes. EUR 500 million of EMTN bonds will mature in July 2025. In the first half of 2025, the Group will evaluate different financing options. Except for this, ISS has no material short-term debt maturities. At 31 December 2024, net debt amounted to DKK 11.3 billion (2023: DKK 10.5 billion), an increase of DKK 0.8 billion mainly due to free cash flow generation being more than offset by payments under the share buyback programme and dividends. Financial leverage at the end of 2024 was 2.0x (2023: 2.2x) and thus at the lower end of the targeted range of 2.0x – 2.5x. The robust capital structure and the Group’s financial strength were recognised by S&P Global resulting in an upgraded credit rat- ing in May to BBB / Stable outlook from BBB- / Positive outlook. Likewise, Moody’s upgraded their credit rating in November to Baa3 / Positive outlook from Baa3 / Stable outlook. In accordance with the capital allocation policy, the Board of Directors (the Board) will at the annual general meeting propose a dividend for 2024 of 20% of adjusted net profit, corresponding to a total dividend of DKK 575 million (DKK 3.1 per share). Furthermore, we are today launching a new share buyback programme to redistribute additional excess cash to our shareholders. Share buyback programmes 2024 programme On 22 February 2024, ISS announced a share buyback pro- gramme, under which ISS would buy back own shares for a maximum consideration of DKK 1.0 billion over the 12 months period from 22 February 2024 to 19 February 2025. During 2024, due to the strong liquidity position and cash flow outlook, the programme was increased twice, bringing the total value of the programme to DKK 1.5 billion. On 19 February 2025, ISS completed the programme as shares for a total consideration of DKK 1.5 billion had been repurchased. At the annual general meeting on 11 April 2025, the Board expects to propose a decrease of ISS A/S’s share capital in accordance with the share buyback programme by cancellation of own shares. Capital allocation Maintaining an investment grade rating At the end of 2024, our financial leverage was 2.0x (2023: 2.2x), i.e. at the lower end of the targeted range of 2.0x – 2.5x. Both S&P Global and Moody’s upgraded their corporate credit rating of ISS in 2024, and ISS currently holds the following corporate credit ratings: S&P: BBB / Stable outlook Moody’s: Baa3 / Positive outlook Dividends At the annual general meeting on 11 April 2025, the Board of Directors will propose a dividend payout for 2024 of 20% of adjusted net profit, corresponding to a total dividend of DKK 575 million (DKK 3.1 per share). Investments ISS completed the bolt-on acquisitions Grupo BN in Spain and gammaRenax in Switzerland adding ~1% to Group revenue. The acqui- sitions have a strong strategic fit and are expected to be financially accretive. Share buybacks ISS introduced a DKK 1 billion share buy-back programme to be executed over a 12-month period during 2024. This has since been in- creased by DKK 500 million bringing the total value of the programme to DKK 1.5 billion, signifying the strong liquidity position and cash outlook. 2025 programme The Board of Directors (the Board) has decided to initiate a new share buyback programme under which ISS will buy back own shares for a maximum consideration of DKK 2.5 billion over a 12-months period from 20 February 2025 to 13 February 2026 at the latest, both days inclusive. Through the programme, ISS wishes to redistribute excess cash to shareholders. The pur- pose of the share buyback programme is to 1) reduce the share capital and 2) meet obligations arising from ISS’s share-based incentive programmes. The programme is expected to be completed in two separate tranches. The first tranche of up to DKK 1,250 million will com- mence 20 February 2025 and complete no later than 11 August 2025. The second tranche to reach the total amount of DKK 2.5 billion is expected to commence upon conclusion of the first tranche and complete 13 February 2026 at the latest. The share buyback programme will be based on the prevailing authorisation to acquire treasury shares granted to the Board by the annual general meeting from time to time. The share buyback programme is implemented in accordance with Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 (the “Market Abuse Regulation”) and the Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016, also referred to as the Safe Harbour Regulation. ISS has appointed Skandinaviska Enskilda Banken, Denmark, branch of Skandinaviska Enskilda Banken AB (publ), Sweden (SEB) as lead manager of the first tranche to execute the share buyback pro- gramme independently and without influence from ISS. 23 Our performance ISS Türkiye Partnership with Actera As part of the acquisition of Rönesans in Sep- tember 2021, ISS agreed to partner with Actera, a leading Türkiyish private equity company, to support and partly fund the acquisition. Actera brought in-depth expertise in the Türkiyish market, a strong operational track record and became minority shareholder owning 39.9% of the shares in ISS Türkiye. Furthermore, management of ISS Türkiye acquired 10% of the shares in ISS Türkiye, while ISS continued to be the controlling shareholder. Under the structure, which has now entered into its fourth year, ISS Türkiye has seen strong growth and improved market position, impacted by hyperinflation and commercial momentum. The shareholders’ agreement between ISS, Actera and management establishes the rights and obligations of the parties, including rights and restrictions on transferring shares, such as right of first refusal, drag along rights from Q4 2024 and right to explore a potential Initial Public Offering (IPO). In line with the terms of the shareholders’ agreement, Actera has initiated a dialogue to ex- plore their potential exit options. These options include a number of scenarios, one of which is an IPO of the Türkiyish entity. Equity At 31 December 2024, equity was DKK 11,913 million (2023: DKK 10,522 million), equivalent to an equity ratio of 23.5% (2023: 22.1%). The increase was largely due to net profit of DKK 2,589 million and hyperinflation restatement of equity in Türkiye of DKK 477 million, which was only partly offset by purchase of treasury shares (share buyback programme) of DKK 1,217 million and dividends paid to shareholders of DKK 425 million. For a complete overview of the development in other compre- hensive income in 2024, see 4.1.7, Other comprehensive income. Financial leverage Target range of 2.0x-2.5x (net debt/Pro forma adjusted EBITDA Equity ratio % X 24 Our performance H2 2024 Revenue Group revenue was DKK 43.1 billion (H2 2023: DKK 40.3 billion), an increase of 6.8% compared with H2 2023. Organic growth was 6.6%, the impact from acquisitions and divestments, net was 1.0%, whereas currency and other effects were negative 0.8%. Organic growth momentum slowed down as expected over the quarters of the year, but then picked up in Q4, largely driven by projects and above-base work, including the significant hur- ricane response and restoration work performed in the US. As a result, organic growth in H2 2024 was 6.6% (H2 2023: 8.1%) compared to 5.9% in H1 2024. Price increases contributed around 5.4% to organic growth of which around half was related to price increases implemented in Türkiye. Across the Group, cost inflation remained relatively high, though decreasing compared to H2 2023. Volume growth was net neutral to organic growth in H2 2024 driven by a combination of increased activity levels at custom- er sites and expansion of contracts with existing customers, mainly in Northern Europe and Asia & Pacific offset by negative portfolio changes in Americas. Net contract wins were negative by around 1%-point due to contracts deliberately exited, most notably in Americas and Asia & Pacific. This was partly offset by the start-up of the contracts with Defra in the UK and the Danish Building and Property Agency in Denmark during Q2 2024 and thus having full effect in H2 2024. Revenue from projects and above-base work contributed around 2.6% to organic growth in H2 2024. This impact was mainly driven by Americas, due to the hurricane response and restoration work in the US as well as broad-based growth in all other regions, most notably in Northern Europe. All regions contributed to the positive organic growth in H2 2024. Central & Southern Europe reported around 10% growth mainly due to price increases and volume growth in Türkiye, however the increases were less steep in H2 2024. In Northern Europe growth was largely driven by increased activity levels at customers’ sites and full effect of start-up of contracts in the UK and Denmark. Asia & Pacific was mainly supported by solid growth in Australia and Singapore. In Americas, growth was primarily supported by the significant hurricane response and restoration work in the US, partly offset by deliberate contract exits. Revenue (DKKm) H2 2024 H2 2023 Organic growth Acq./ div. Currency & other adj. Revenue Growth Northern Europe 15,952 14,896 7% (1)% 1% 7% Central & Southern Europe 13,947 12,636 10% 4% (4)% 10% Asia & Pacific 7,354 7,192 2% 0% 0% 2% Americas 4,872 4,832 4% - (3)% 1% Other countries 418 383 5% - 4% 9% Corporate / eliminations (34) (42) - - - - Group, excl. IAS 29 42,509 39,897 6.6% 1.0% (1.1)% 6.5% Group 43,080 40,345 6.6% 1.0% (0.8)% 6.8% Organic growth 2024 2023 (DKKm) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Northern Europe 6% 8% 7% 5% 6% 5% 5% 6% Central & Southern Europe 10% 10% 12% 12% 13% 14% 17% 20% Asia & Pacific 3% 1% 1% 5% 6% 9% 8% 6% Americas 20% (12)% (5)% (2)% 3% 10% 18% 22% Total 8.3% 4.8% 5.8% 6.0% 7.1% 9.3% 10.9% 12.0% Revenue and growth Organic growth per region Revenue (DKKbn), excl. IAS 29 Organic growth (%) Northern Europe Central & Southern Europe Asia & Pacific Americas % DKKbn % 25 Our performance Operating profit before other items Operating profit before other items amounted to DKK 2,563 million for an operating margin of 5.9% (H2 2023: 4.8%). Excluding the effect from hyperinflation in Türkiye (IAS 29), op- erating profit before other items was DKK 2,555 million leading to an operating margin of 6.0% (H2 2023: 4.9%). The increase in operating margin compared to H2 2023 was driven by continued operational improvements, efficiencies and cost savings initiatives across the Group, including savings following the OneISS strategy review by the end of 2023. Furthermore, operating leverage from the higher revenue and deliberate exits of certain margin dilutive contracts impacted positively. In addition, margin benefitted from continued im- provement on the Deutsche Telekom contract and in the UK as well as certain one-off income in Asia & Pacific. From a regional perspective, margin improvements were broad-based, with all regions delivering margin increases compared to H2 2023, largely achieved through realisation of OneISS efficiencies and operating leverage from the higher revenue. Northern Europe benefitted from general efficiencies and margin improvements across the region, in particular Denmark and Finland, as well as continued progress in the UK. Furthermore, start-up of the contracts with Defra in the UK and the Danish Building Agency in Denmark impacted positively. Central & Southern Europe contributed most to the improve- ment, driven by generally solid developments, most significantly in Switzerland and Türkiye, and continued operational improve- ments on the Deutsche Telekom contract. In Americas, margin improvements were achieved across the region, mainly as a result of deliberate exits of non-accretive contracts. In Asia & Pacific margin increased due to continued operational efficien- cies and positive effects from certain one-off items in Australia and Singapore, partly incurred in H2 2024. Corporate costs amounted to DKK 643 million in H2 2024 corresponding to 1.5% of Group revenue (H2 2023: 1.6%). The development mainly reflected savings and efficiencies following the OneISS strategy review by the end of 2023 with full effect in H2 2024. Free cash flow Free cash flow amounted to DKK 3,091 million in H2 2024 (H2 2023: DKK 2,849 million), an increase of DKK 242 million com- pared with the same period last year. The improvement was driven by the positive operating profit performance stemming from the general margin improvement, which was partly offset by a lower inflow from changes in working capital. The tight management of working capital was maintained in H2 2024. However, due to revenue growth, as well as adverse effects of Deutsche Telekom withholding certain payments relating to the ongoing contractual dispute, trade receivables increased and changes in working capital was an inflow of DKK 1,359 million in H2 2024 (H2 2023: inflow DKK 1,816 million). Operating profit before other items (DKKm) H2 2024 H2 2023 Northern Europe 1,123 7.0% 946 6.4% Central & Southern Europe 1,170 8.4% 867 6.9% Asia & Pacific 551 7.5% 461 6.4% Americas 338 6.9% 300 6.2% Other countries 16 3.8% 22 5.7% Corporate / eliminations (643) - (651) - Group, excl. IAS 29 2,555 6.0% 1,945 4.9% Group 2,563 5.9% 1,953 4.8% 26 Our performance OUR REGIONS Northern Europe Central & Southern Europe Asia & Pacific Americas 37% of Group revenue 33% of Group revenue 17% of Group revenue 12% of Group revenue 20% of Group employees 33% of Group employees 38% of Group employees 9% of Group employees ISS holds a market-leading position across the region of generally mature and competitive markets with a relatively high outsourcing rate and IFS market maturity. The largest country in the region is the UK, contributing around 40% of revenue. Key customer segments include Office-based customers in Financial Services, Professional Services and Public Administration; Production- based customers in Industry & Manufacturing; and Healthcare. Excluding global managed services (1% of Group revenue) Central and Southern Europe comprises several key markets, where we hold leading market positions, including Switzerland, Spain, Austria and Türkiye. Most of the markets are developed, but with significant differences in IFS market maturity and macroeconomic environment. Key customer segments include Office-based customers in Information & Communication and Financial Services; and Production-based customers in Industry & Manufacturing and Pharmaceuticals; and Healthcare. The region comprises a mix of developed markets including Australia & New Zealand, Hong Kong and Singapore, as well as developing markets such as Indonesia, India and China. ISS has a strong presence in the region and holds a market-leading position in several countries. Key customer segments include Office-based customers in Financial Services and Public Administration; Production-based customers in Industry & Manufacturing; Healthcare, Aviation, and Energy and Resources. The Americas consists of the mature North American market as well as Mexico and Chile. North America is the world’s largest FM market, accounting for around 30% of the global outsourced FM market. Compared to other regions, food services account for a larger share of revenue, whereas healthcare customers account for a lower share. Given our limited market share, North America represents a significant opportunity for growth. Key customer segments include Office-based customers in Technology and Financial Services, as well as Production-based customers in Industry & Manufacturing and Life Sciences. 27 Our performance Key events 2024 Successful extension and expansions of several key account customers, including our long-standing customer relationship with Nordea for an additional 5 years Solid commercial momentum resulting significant new key account wins, most notably the IFS contract with the Department for Work and Pensions in the UK Successful start-up of Defra in the UK and the Danish Building and Property Agency in Denmark Accelerated the finance shared service journey and initiated transition activities across additional countries (Denmark, Sweden, Finland and the Netherlands) Commercial update Our strategic focus on IFS and key account customers secured both new contract wins and extensions, and the commercial pipeline across the region remained robust. In the UK, ISS was awarded several new key account contracts, including the IFS contract with the Department of Work and Pensions (DWP) start- ing in October 2025. In addition, in Finland a significant contract with an aviation customer was awarded. With few exceptions, all large key account contracts with expiry dates in 2024 were successfully extended, often with increased scope, including our long-standing customer relationship with Nordea and the global contract with Barclays, which led to a retention rate of 94% (2023: 95%). Financial update Revenue increased to DKK 31,328 million in 2024 (2023: DKK 29,324 million). Organic growth was 6.4% and currency effects were positive 1%. In 2024, organic growth was largely due to price increases being successfully implemented across the region to mitigate cost inflation. In addition, growth was supported by underlying volume growth from customers’ increased activity levels along with positive impacts from startup of new contracts, most sig- nificantly Defra in the UK and the Danish Building and Property Agency in Denmark. Revenue from projects and above-base work was maintained at a high level with positive organic growth of 8.9% for the year, and accounted for 20% (2023: 19%) of revenue for the region. All countries, except Norway, generated positive organic growth with the UK being the most significant contributor. In the UK, the primary factor was the launch of Defra and other significant new key accounts, expansions with existing customers and good momentum in projects and above base work. Denmark contributed positive organic growth mainly due to launch of the Danish Building and Property Agency contract, which became fully operational in 2024, an increasing activity levels at existing customers’ sites. In Belgium, growth was also driven by increased activity levels with key account customers as well as from startup of new contracts. Operating profit before other items was DKK 1,803 million (2023: DKK 1,572 million), for an operating margin of 5.8% (2023: 5.4%). Margin improvements were broad-based, though most significant in Denmark, Finland and the UK, mainly due to continued operational efficiencies and operating leverage from higher revenue. Despite the improvement, the UK continued to be dilutive to the Group operating margin, and management continues to implement initiatives to further strengthen operational and financial performance in 2025. Revenue (DKKbn) Organic growth (%) Operating profit before other items (DKKbn) Operating margin (%) Organic growth Operating margin Organic growth by quarter DKKbn % % DKKbn % Northern Europe 28 Our performance Key events 2024 Successful contract extension and retention of some of the largest customers in the region Strong new wins in H2 2024 with 3 large contracts (annual revenue between DKK 50 million and 100 million) Acquisition of gammaRenax and Grupo BN, and successful integration with benefit realisation in line with expectations Deutsche Telekom – continued operational improvements and final oral hearing in the arbitration proceedings scheduled to take place in mid July 2025 Commercial update The commercial development was solid and the pipeline of new business opportunities remained attractive. Healthcare continues being a prioritised segment within the region with significant new wins (annual revenue < DKK 100 million) in 2024, primarily in Spain and Switzerland, though also an exit from a contract in Türkiye due to unfavourable commercial terms. 2024 was further an important year from a retention perspective, where we successfully extended and renewed our partnerships with some of the largest customers in the region leading to a retention rate of 95% (2023: 97%). M&A update Two bolt-on acquisitions were made in the region in 2024 to strengthen our market position. In Switzerland, the acquisition of gammaRenax strengthened our country-wide footprint adding scale predominately within cleaning and technical services in prioritised customer segments and added around 0.6% to Group annual revenue. In Spain, the acquisition of Grupo BN further strengthened our business platform, predominantly within cleaning, and will add around 0.4% to Group annual revenue. Both acquisitions have strong strategic fits to our existing business platforms and enables further value creation from operational and back-office synergies. Integration of the acquired businesses is progressing according to plan with benefit realisation in line with expectations. Financial update Revenue increased to DKK 27,159 million in 2024 (2023: DKK 24,807 million) excluding effects of IAS 29. Organic growth was 10.9% most significantly driven from price increases in Türkiye. Acquisitions and divestments, net increased revenue by 4% related to acquisitions in Switzerland and Spain, whereas currency effects reduced revenue by 6%. In 2024, organic growth in the region was primarily driven by strong growth in Türkiye as a result of high cost inflation mitigated through the implementation of price increases. However, the vast majority of countries contributed with positive growth in the year, mainly due to price increases being successfully implemented to offset the effects of cost inflation. Price increases impacted organic growth positively by 11.8%, whereas volume growth was slightly negative. Net contract wins were also slightly negative, impacted by a few deliberate contract exits with unfavorable commercial terms. Throughout the year, the region maintained double-digit organic growth. The trend was in line with expectations, however, declining due to a tougher comparison base from 2023, where inflation levels and associated price increases were higher, mainly due to an additional increase of minimum wages in Türkiye in mid 2023. In addition, the region continued benefitting from high demand for traditional projects and above-base work from key account customers which accounted for 16% (2023: 18%) of revenue in the region. Operating profit before other items amounted to DKK 1,855 million (2023: DKK 1,439 million) for an operating margin of 6.6% (2023: 5.8%). Excluding the impact of hyperinflation (IAS 29), operating profit before other items was DKK 1,867 million (2023: DKK 1,487 million) corresponding to an operating margin of 6.9% (2023: 6.0%). The majority of countries continued to be accretive to Group margin, and the improvement in operating margin was broad-based, though most significantly driven by Türkiye and Switzerland. Profitability improvement on the Deutsche Telekom contract was also solid as a result of continued implementation of improvement initiatives. The arbitration process initiated by ISS regarding certain contractual disagreements progressed according to plan. The final oral hearing in the arbitration proceedings is scheduled to take place in mid July 2025, see p. 19 for further information. Revenue (DKKbn), excl. IAS 29 Organic growth (%) Operating profit before other items (DKKbn), excl. IAS 29 Operating margin (%) Organic growth Operating margin Organic growth by quarter DKKbn % % DKKbn % Central & Southern Europe 29 Our performance Commercial update In 2024, we sharpened our “bid-no-bid” process to go only after selective bids in alignment with our strategic focus. Our commer- cial pipeline remained solid across the region, and we secured a number of important new wins in our prioritised segments, primarily in Singapore, Australia and India. Retention rate was 95% (2023: 93%) as we successfully retained and, in some cases, expanded the scope of the vast majority of contracts up for renewal across local prioritised segments like Public Administration, Energy and Resources, Aviation and Office Based clients. Financial update Revenue increased to DKK 14,403 million in 2024 (2023: DKK 14,229 million). Organic growth was 2.4%, whereas currency ef- fects reduced revenue by 1%. Overall growth in 2024 was held back due to a strong focus on labour-related compliance in par- ticular relating to overtime hours and pay rates in addition to driving a sustainable and accretive margin. This resulted in the exit of several customer contracts across the region. Portfolio revenue grew organically by 4.5% with modest growth across most countries, except in India, Hong Kong and Indo- nesia for reasons highlighted above. Projects and above-base work reduced by 14.6%, mainly in Pacific, Hong Kong and Sin- gapore as Covid-19-related above-base work completely ceased by mid-2023. Demand for projects and above base work was also impacted by global key contract losses in 2023, though partially mitigated by certain local key account customers, particularly in China and Indonesia. Operating profit before other items increased to DKK 1,032 million (2023: DKK 875 million), corresponding to an operating margin of 7.2% (2023: 6.1%). The margin uplift reflects our strategy to drive growth with a sustainable and accretive mar- gin. In addition to improving customer contribution through a combination of price increases and productivity initiatives, we have improved efficiency and productivity of our country and regional support functions resulting in improved operating leverages. Furthermore, the region benefitted from ongoing government grants being secured in Singapore as well as cer- tain one-off items in Australia. Revenue (DKKbn) Organic growth (%) Operating profit before other items (DKKbn) Operating margin (%) Organic growth Operating margin Organic growth by quarter DKKbn % % DKKbn % Asia & Pacific Key events 2024 Successful renewal of the vast majority of the largest contracts up for renewal, most notably in Australia Solid margin uplift due to focus on labour-related compliance and driving sustainable and accretive margins Secured ongoing government grants in Singapore 30 Our performance Commercial update During the second half of 2024, Americas secured a significant expansion of an existing contract with a Healthcare customer in the US with expected startup early 2025. However, deliber- ate contract trimming caused several contract exits, including a significant industry and manufacturing customer in the US. As a result, the retention rate decreased to 85% (2023: 91%). Financial update Revenue decreased to DKK 9,407 million in 2024 (2023: DKK 9,605 million). Organic growth was 0.4% while currency effects impacted growth negatively by 2.4%. In 2024, organic growth was negatively impacted by deliberate contract trimming in North America leading to net contract wins of (7.3)%. This reduction was, however, mitigated by projects and above-base work growing organically by around 50%, mainly due to the significant hurricane response and restoration work performed by the US in Q4, which included re-establishing infrastructure and facilitating the setup of an employee support centre. Furthermore, across the region, price increases continued to be implemented to offset the effects of cost inflation and wage increases, and thereby contributed positively to the organic growth. Revenue from projects and above-base work accounted for 17% (2023: 12%) of the revenue in the region, mainly due to the US. Continued demand for additional services in Mexico also impacted positively. Portfolio revenue declined organically by 6.0%, primarily driven by the deliberate contract exits and losses, mainly the above-mentioned industry and manufactur- ing customer in North America in Q2 2024. From a country-perspective, organic growth was negative in the US, whereas both Mexico and Chile reported positive organic growth. The strategic focus on IFS and key account customers progressed and demand from key accounts was more robust and resilient compared to the rest of the customer base. Furthermore, across the region, we saw a development with increases across existing customers. Operating profit before other items was DKK 547 million (2023: DKK 489 million), corresponding to an operating margin of 5.8% (2023: 5.1%). The margin increase was mainly driven by the deliberate contract exits from customers in the US in 2023 and 2024. In addition, margin benefitted from efficiencies and operational improvements across the region. Revenue (DKKbn) Organic growth (%) Operating profit before other items (DKKbn) Operating margin (%) Organic growth Operating margin Organic growth by quarter DKKbn % % DKKbn % Americas Key events 2024 Significant hurricane response and restoration work performed in the US in Q4 Deliberate contract trimming with several contract exits, including a significant industry and manufacturing customer in the US Win of a Business Services & IT customer in the US (< DKK 100 million annual revenue) Loss of a banking customer in Mexico (exit delayed to Q1 2025) 31 Our performance Country revenue Northern Europe (DKKm) % of Group 2024 2023 UK & Ireland 14% 11,939 10,611 Norway 4% 3,726 3,810 Belgium & Luxembourg 4% 3,557 3,438 Finland 4% 3,414 3,313 Denmark 4% 3,224 2,994 Sweden 4% 3,107 3,044 Netherlands 2% 1,798 1,611 Poland 1% 457 410 Lithuania 0% 106 93 Total 37% 31,328 29,324 Asia & Pacific (DKKm) % of Group 2024 2023 Australia & New Zealand 6% 5,279 5,102 Hong Kong 3% 2,423 2,500 Singapore 3% 2,311 2,214 Indonesia 2% 1,961 1,986 India 2% 1,472 1,489 China 1% 957 938 Total 17% 14,403 14,229 Central & Southern Europe (DKKm) % of Group 2024 2023 Switzerland 8% 7,052 6,383 Türkiye 8% 6,622 4,833 Germany 7% 5,713 5,864 Spain 6% 5,136 4,460 Austria 3% 2,636 2,517 Italy 1% 756 748 Total 33% 27,915 24,805 Americas (DKKm) % of Group 2024 2023 USA & Canada 8% 6,870 7,004 Mexico 2% 1,312 1,316 Chile 2% 1,225 1,245 Other 0% 0 40 Total 12% 9,407 9,605 Global managed services Revenue in countries where we render services to global key accounts but do not have a full country support structure comprises 1% of Group revenue or DKK 767 million (2023: DKK 783 million) and comprised the countries listed below. Argentina Brazil Bulgaria Czech Republic Colombia Costa Rica Cyprus France Greece Hungary Israel Japan Jordan Kazakhstan Malaysia Monaco Pakistan Philippines Puerto Rico Portugal Romania Serbia Senegal Slovakia South Africa South Korea Taiwan Thailand United Arab Emirates Vietnam 32 CASE Employee engagement is vital for business success, yet disengagement remains a significant global issue. It is estimated that 9% of the global economy is lost simply due to employee disengagement, which translates into USD 9 trillion in lost GDP on an annual basis. This highlights a pressing challenge for businesses worldwide: how to create environments where people can thrive, feel engaged and be their most productive? The debate around returning to the office has intensified in recent years, and many businesses are still navigating return- to-office programmes. Some employers are pushing to bring employees back to the office, while some employees advocate for maintaining the remote work flexibility they gained during the pandemic. This growing demand for workplace flexibility continues to drive the popularity of non-traditional employment models, making workplace experience more relevant than ever. Over the past year, we’ve seen a shift toward more on-site work, with many companies implementing return-to-office mandates. These have yielded mixed results. While some employees report benefits such as improved engagement, stronger collaboration, and better work routines, others experience setbacks like increased stress and reduced productivity. This diverse response raises a critical question: How can businesses ensure their employees feel valued and remain engaged in a work environment? At ISS, we believe that when people thrive, businesses thrive. We recognise that a disengaged workforce is not just a problem to solve but an opportunity to create lasting value. By transforming workplaces into spaces where employees feel valued, engaged and productive, ISS empowers businesses to overcome the global engagement challenge, and drive growth. Our approach benefits customers by turning employee disengagement – a trillion-dollar global problem – into a strategic advantage. By creating positive workplace experiences, we enable our customers to build agile, resilient workforces equipped to meet the demands of a rapidly transforming world. At ISS, we aim to be more than just a service provider; we are a true partner in our customers’ success. This begins with our own people. We prioritise employee education, career development, and a supportive culture within our own organisation, ensuring that our teams are equipped to deliver exceptional service. When our people thrive, they create spaces where our customers’ employees can thrive too. This positions ISS as the ideal partner for businesses seeking to turn the challenge of employee disengagement into an opportunity for growth and success. Addressing the global lack of employee engagement WORKPLACE EXPERIENCE “Our mission: We make space for people and businesses to thrive.” 65 % Not engaged 15 % Actively disengaged 23 % Engaged Gallup: Employee engagement ~9% of lost GDP due to low engagement Our business 34 Our business Unlocking ISS’s full potential ONEISS STRATEGY While our strategic direction remained un- changed, in 2024 we completed a wide-ranging review to refresh and update our strategic priori- ties, aimed at unlocking ISS’s full potential. The OneISS strategy was launched in 2020 and during the last four years, ISS delivered margin and growth recovery, turned around challenging markets and contracts, completed the stra- tegic divestment programme, made selective acquisitions and maintained a high retention rate. However, the fact remains that our growth in the last few years has been largely driven by return to office and inflation, while the level of new contract wins has been disappointing. Our strategy and our focus remains on growing Integrated Facility Services (IFS) and single-service cleaning across our business to increase market share and drive profitable growth. The aim of the updated strategic priorities is to maximise value creation and unlock ISS’s full potential. Playing to our strengths ISS currently holds an estimated 1% global market share; an exciting opportunity for further growth. The updates we have made to our strategic priorities will position us to play to our strengths and capture a larger share of the market. Our 2024 strategy refresh is underpinned by a thorough review, and reflected lessons learned from our recent growth perfor- mance. Taking into account the shifting trends in market dynam- ics driven by a range of factors including global economic, geo- political and labour market changes, as well as our experience of operating with the OneISS strategy since its launch in 2020. As part of the review, we took a detailed look at how the changes and trends in selected focus segments are evolving current and future customer goals, challenges and needs. This highlighted that customers specifically look for positive impacts in three areas when engaging with a service partner: Efficiency and standardisation/price Optimising customers’ costs while managing risks and compliance Customer experience Delivering exceptional employee experiences for our customers Sustainability Delivering on carbon emission targets and support social progress All three customer priorities are important, however, ISS’s global reach and expertise, coupled with our unwavering focus on workplace and quality of customer experience through our self-delivery model, is what sets us apart from our competitors. According to a 2023 Gallup survey, low engagement in the workplace costs an estimated 9% of global GDP. We can help current and future customers address this through consistently providing their people with exceptional employee experiences. See our workplace experience case on p. 32. Updated strategic priorities Following our strategic review, we sharpened our focus from the five OneISS priorities, launched in 2020, to three updated priorities addressing the top customer needs. The three prior- ities will be mobilised and executed through eight Group-led transformation initiatives, see the box to the right. 3 global priorities, 8 initiatives Group Commercial Operating model to drive new wins and internationalisation of accounts Segment-focused service products to evolve unique selling proposition to global segments Digital recruiting to hire the best people most effectively Digital onboarding and engagement to support people in delivering leading service experience Social sustainability to be enabler of social mobility People Data and Analytics to deliver people insights to managers, leaders and P&C Workforce management to establish service cost competitiveness Finance shared service center to do the same better with less overhead costs Customer centric growth Leading frontline employer Efficiency Implementing with pace and quality In January 2025, changes to the Executive Group Management (EGM) were announced to best position ISS to implement the refreshed strategy, reducing it to five members. This move aligned ISS’s organisational structure at a senior leadership level, reducing complexity and creating a smaller, more agile leadership team, with a more empowered organisation. New Group Commercial and Revenue function Our strategic review confirmed the importance of customer centricity and being laser focused on the segments and cus- tomers we pursue to drive growth across our entire portfolio. Carl-Fredrik Langard-Bjor leads this newly created function with responsibility for growth and all revenue levers across the busi- ness, driving the strategic priority around Customer centric growth . Powered by technology Since the launch of OneISS, we have made significant progress across our global technology organisation, centralising and strengthening critical technology services and cybersecurity as well as launched new customer-facing products. Going forward, our technology focus shifts from industry leadership to enabling our business with technology. Liz Benison leads this as Group Chief People & Technology Officer to further develop our technology infrastructure as well as driving the strategic focus on the people agenda under the strategic priority around Leading frontline employer . Read more about the latter in Our people, pp, 36-37. All countries under one Group COO Troels Bjerg leads the new COO function which all countries will report into, clustered by geographies. This approach has been designed to help the countries remain close to all Group functions and support execution of the strategy, and driving a consistent performance management culture across the enter- prise, i.e. our strategic priority Efficiency . 35 Our business We make space for people and businesses to thrive “We make space” refers to the physical spaces, but also a mental space - a deeper understanding of how to make people resourceful, instead of just viewing them as a resource. “for people and businesses” reflects that the success of businesses are completely dependent on the people working there. “to thrive” is the goal that fuels engagement. For people, for profit, and for purpose – social and environmental. Updated global segments We have prioritised four global segments where ISS can play to its strengths, focussing our global expertise on delivering exceptional employee experiences for our customers. In these segments, companies operate in knowledge-based industries where greater value is placed on being able to attract and engage talent to succeed: Financial services Professional services Technology Life Sciences To maximise growth across ISS’s entire portfolio, countries will continue to pursue growth opportunities outside of the four global segments, based on local capability and market profile. This builds on our global experience that some segments are unique to certain markets and are best managed at a coun- try level, e.g. healthcare, which is very locally driven through national systems and policies. This flexible approach will enable us to unlock scale synergies in the four global segments, while at the same time pursuing attrac- tive growth opportunities based on competitive strengths locally. Uniting our colleagues behind a new mission To unite the organisation around delivering exceptional cus- tomer experiences, we launched a new mission at the end of 2024 that links our daily work to the value we create for our customers: We make space for people and businesses to thrive. By supporting the complex, day-to-day operations of facilities, we help businesses focus on their core activities. This under- scores a commitment to understanding and adapting to the unique needs of different customers. But the value is more than freeing up time, because we are result-oriented and play an active part in making employees and businesses thrive. Next steps – 2025 and beyond In 2025, we will sharpen our execution and focus on imple- menting the refreshed strategy with oversight from a dedicated transformation team. All eight initiatives are underpinned by business plans including key milestones, targets and key-per- formance indicators (KPIs) to monitor progress and track the expected benefits delivering a return on investment. Working with our country teams, we will strengthen local growth plans and develop country implementation plans for each of the eight initiatives. Local segments Financial services Professional services Technology Life sciences Customer segments Our mission 36 Our business OUR PEOPLE A place to be you ISS has a legacy of over 120 years as a people- focused company. Caring for our people is deeply rooted in our DNA, as they are the foundation of our business and our greatest driver of success. Today, we have more than 325,000 dedicated employees who deliver value to our 40,000 customers worldwide. We call our employees ‘placemakers,’ acknowledging that everyone contrib- utes to creating great places for our customers. The majority – over 300,000 – work directly on-site at our customers’ facilities. These placemakers create tangible value by providing quality, efficient services and workplace experiences, enhancing safety and well-being for our customers’ employees every day. For many of our placemakers, ISS represents their first entry into the job market. Across our regions, spanning the globe from China to Chile to Norway, we employ individuals often from underrepresented groups in society, including those from socio-economically disadvantaged backgrounds, displaced individuals, and people with disabilities. By offering them a role at ISS, we provide opportunities they might not easily find else- where. This impact creates a positive ripple effect on families and the communities we serve. This is why social sustainability is at the heart of ISS and the area where we can make our greatest impact. We see it as a significant responsibility, and by doing good, we also do well for our business. We strengthen our success in attracting and re- taining employees, and when our placemakers are happy, they are motivated to deliver exceptional service experiences for our customers. Finally, we provide our customers with unique op- portunities to support their own social sustainability agendas. This is also why physical and mental safety and well-being is a key element of our new strategic priorities. Specifically, we aim to become the world’s Leading frontline employer . Four new people focus areas To become the world’s leading frontline employer, we will main- tain a steadfast focus on delivering an exceptional people expe- rience throughout the entire people journey – from recruitment to employment, development, and retention. Additionally, this exceptional people experience will be inte- grated into our social sustainability agenda and embedded in the daily execution of our Employee Value Proposition (EVP): A Place to Be You , which comprises three promises to every single person who works for us today – and to every single person who wants to join us: At ISS, you can be who you are, become what you want, and be part of something bigger. Recognising that the world is changing, with workforce short- ages in many markets, and a global workforce increasingly becoming more purpose-driven, we will accelerate our people and social sustainability initiatives in four key areas. Our main ambition with these initiatives is to improve the quality of our people processes, empowered by data-driven insights and solutions, resulting in reduced costs and higher employee retention. In 2025, we will define specific targets and KPIs for each initiative. People data and analytics A world-class people experience relies on data-driven decisions. We will establish a streamlined, essential data system providing automated, high-quality insights on key metrics such as reten- tion and absence rates. Digital recruitment Optimising recruiting and onboarding is essential to ISS. With currently around 120,000 new hires annually, this drives high recruitment and training costs. A new Talent Acquisition Centre will enhance talent attraction, supported by an AI-driven platform. 2 1 Digital onboarding and engagement To enhance employee engagement, we will integrate our digital engagement and feedback platforms, MyVoice and MyISS. This integrated platform will be accessible on our placemakers’ mobile devices, with continuous tracking of engagement as a key feature. Social sustainability The exceptional people experience will also be deeply integrat- ed into our social sustainability agenda and embedded in the daily execution of our EVP. Our fourth priority includes three new components: 1. Social Value Portal We want to measure our social impact through a new Group collaboration with the UK company Social Value Portal. As the importance of delivering measurable social value to our customers and communities grows, the purpose of this part- nership is to capture the monetary value of our social contri- butions. By leveraging the expertise and methodology of Social Value Portal, we will, for instance, be able to quantify the soci- etal value of hiring people with disabilities in a local community. 2. Sustainable income Building on our ‘signature objective’ of advancing the imple- mentation of living wages across our industry, we will now explore additional sustainable income initiatives, such as faster access to earned income, securing more stable working hours, and enhancing financial literacy among our placemakers. 3. Education As education is a key driver of social change and employee engagement, we have committed to continuing our signature objective of providing 100,000 placemakers and their family members with certified education by 2025. Together with partners, we aim to add an additional 250,000 by 2030. 4 3 Driving social sustainability through our Employee Value Proposition Our EVP is deeply rooted in our social sustainability agenda and reflects our aim for a culture where everyone feels valued and respected, and where everyone is treated fairly and equally. This includes creating an environment where everyone can be their true authentic selves and be valued for exactly who they are – no matter their age, gender, physical or mental health, cultural background or sexuality. As part of this, we want to give people the opportunity to make an impact on their own personal devel- opment, as well as customer’s successes and societies at large. Our commitment to empowering our people and providing equal opportunities for all individuals is unwavering. In 2024, we advanced our commitments and goals in various areas, see the next page. Looking ahead In 2025, we will continue working with policymakers, cus- tomers, and suppliers to implement living wages across our industry, alongside our new commitment to exploring further sustainable income initiatives. Additionally, we will strengthen our efforts to provide qualifications for our placemakers and enhance leadership quality. We firmly believe that these initia- tives – combined with our commitment to creating exceptional people journeys for everyone – will lead to improved engage- ment and retention. 37 Our business Be who you are Fair compensation and benefits In 2022, we committed to the ‘signature objective’ of increasing the implementation of living wages across our industry through joint efforts with policymakers, customers, suppliers, and other key stakeholders. Numerous surveys along with our own data demonstrate that fair remuneration not only fosters a sense of belonging and makes employees feel valued but also drives positive outcomes in productivity, engagement and retention. For progress in 2024, see our Sustainability statement, S1-4, p. 69 and S1-5, p. 73. Diverse and inclusive workplaces We aim for an inclusive culture where everyone feels valued, engaged and respected, and where everyone is treated fairly and equally. Therefore, our diversity, inclusion, and belonging (DIB) efforts are focused on empowering our placemakers to contribute their unique skills and perspectives. Our DIB strategy is built around five dimensions of diversity: abilities, gender, generations & age, pride, and cultures, race & ethnicity. Within gender, we have set a target to achieve 40% gender balance at corporate leadership level by 2026. For a sta- tus on gender balance within the Executive Group Management, Corporate Leadership and the Board of Directors, see p. 46. We are also proud of the continued impact of our Employee Re- source Groups (ERGs) – voluntary groups led by our placemak- ers – that drive our inclusion and belonging agenda through concrete DIB activities, see p. 71 for 2024 activities. Health & Safety As a vital part of living up to our people promise, our entire health and safety agenda is pivotal for us to make our placemakers feel they belong in a company where respect and protection of their physical and mental wellbeing is a key essential for all. Our approach and key actions to prevent accidents and promote safety behaviors are described in detail in our Sustainability statement, see S1-4, Health & Safety, p. 69. In addition, our Health & Safety metrics are disclosed in S1-14, p. 75. Become what you want Development and training are fundamental to supporting our placemakers’ unique dreams and journeys and helping them achieve their full potential. We are committed to creating oppor- tunities for underrepresented groups and enhancing the social mobility of all our placemakers and their family members. Our second ‘signature objective’ focuses on providing 100,000 placemakers and their family members with a recognised qualifi- cation by 2025. By 2024, we have achieved 73,000, keeping us well on track to meet our target, and together with partners we aim to add an additional 250,000 by 2030. For further details, see our Sustainability statement, S1-4, pp. 69-72 and S1-5, p. 73. Education, development, and learning are essential for everyone, at all levels, to drive both individual and business success. In 2024, we continued or leadership training in various areas. Addi- tionally, we continued the implementation of our digital learning and communications platforms; MyLearning and MyISS. For an overview of our learning and development programmes, see our Sustainability statement, S1-4, pp. 69-72. Be part of something bigger We offer our placemakers the opportunity to belong to an ISS community of over 325,000 people globally. We also provide them with chances to contribute to our customers’ success and the wider communities. Increasingly, we are seeing that customers prioritise social sus- tainability as a key lever in driving success. Several of our major contract wins and extensions in 2024 included social sustaina- bility requirements. With the great diversity of our placemakers and our self-delivery model, we are uniquely positioned to support our customers in their social agenda. Key indicators of success We measure a wide range of social sustainability and people initiatives on an ongoing basis. However, our two key indicators of success are employee engagement and retention. Employee engagement In 2024, we launched the most extensive employee survey ever conducted at ISS: the MyVoice Global Survey. More than 150,000 placemakers across ISS shared their thoughts and feedback, resulting in a 54% participation rate. We are proud to announce that, as an organisation, we achieved an engagement score of 74%. This score reflects the overall level of engagement among the placemakers who re- sponded, capturing their sense of belonging, intention to stay with ISS, willingness to recommend ISS as a workplace, and – importantly - their belief that providing honest and confidential feedback will lead to positive change. Based on the survey feedback, leaders will collaborate with employees to create plans aimed at making ISS an even better place to work. Employee turnover We operate in a high-churn market, a trend unlikely to change. However, we aim to improve retention long-term, benefitting our customers through more consistent, high-quality service and reduced recruitment and onboarding costs. Employee turnover was 32% in 2024 (2023: 33%). We are committed to improve this development, and countries are proactively working with how they attract, recruit, onboard and further develop employees. The learnings from our countries and our global MyVoice survey will support our focus to im- prove the employee turnover in 2025 and beyond. MyVoice Global Survey – highlights Feedback 154,000+ Participation rate 54% Engagement score 74% Employee turnover Fatalities and LTIF In 2024, we tragically experienced one fatality and Lost Time Injury Frequency (LTIF) was 2.9. Health and safety is a key priority for us, and we are continuously striving to improve our efforts to prevent serious accidents. In 2024, we initiated further mitigating actions: We conducted our first Global Health Culture survey, followed by focus groups with placemakers worldwide to assess our safety culture and establish a baseline, with a safety culture improvement plan set to begin in 2025. We also introduced ‘safety stand-downs’ led by the Group CEO for all leaders to address serious incidents. 38 Our business Our business risks MANAGING At ISS, we perceive risk management as an enabler for value creation, while at the same time being essential for protection of value. The aim of our risk management activities is to ensure that opportunities and risks are balanced appropriately. Our risk management activities are aimed both at strategic risks posing a threat to achieving our long-term business objectives, e.g. from evolving market trends or customer needs, and at operational risks arising from our operational characteristics, which potentially impact our business performance in the short to medium term. As a provider of integrated facility services, our services are often deeply integrated into our customers’ value streams causing risk of disrupting their operations, if effective risk man- agement is not applied. Thus, in addition to managing risks in our own processes, we play a significant role in our customers risk management. Addressing risks from market developments Hybrid work models / return-to-office The debate around returning to office has intensified in recent years and many businesses are navigating return-to-office programmes. In 2024, we continued to see a shift toward more on-site work, with many companies implementing return-to-of- fice mandates. At the same time some employees continue to advocate for maintaining the workplace flexibility gained during the pandemic. These trends represent both risks and opportu- nities for ISS, and we continue to work closely with customers to enhance the workplace experience, ensuring our services meet the evolving needs of our customers and the workforce. With our updated strategic priorities launched in December 2024, we believe that we are even better positioned to meet this evolving need. Wage inflation Uncertainty over price levels and global economic growth remained high representing a continued risk to our business. While goods and services price growth slowed, wage inflation remained high, reaching peak values in some regions. As a re- sult, inflation management remained a priority in the year, and we continued to successfully utilise contractual terms of our customer contracts to implement price increases and/or scope adjustments to mitigate the increasing operating costs. Labour shortage In certain geographies we experience pressure on availability of labour, which among other things is fuelled by demographic changes like aging societies and migration. This pressure con- tributes to increased employee expectations that go beyond remuneration and encompass wider social responsibility re- quirements. We continue to monitor local labour markets and take action to shape our employee value proposition to meet local market expectation. In 2024, we made progress in devel- oping a sustainable wage initiative and launched the updated strategic priority Leading frontline employer, which we see as key mitigants to the social sustainability risks we are facing. Emerging technology We continue to observe the rapid development in technology fields that have the potential to disrupt and influence the facility management industry. Our ability to successfully understand and incorporate these technologies into our service offering as well as our own business processes will be crucial in maintaining our competitive advantage. While adoption rates in the industry as a whole remain low, we continue to develop our IT and commercial capabilities to leverage these opportunities in the future. We per- ceive technology as a key enabler of our strategic goals and will as such play a vital part in all of our three updated strategic priorities. Group key risks Annual review As part of our annual process, we have reviewed and refined the Group’s key risks to reflect the main exposure that may potentially impact the achievement of our OneISS strate- gic priorities. Our list of Top 10 risks remains consistent with those we reported in 2023. This highlights, that our overall risk profile remains stable. Nevertheless, we have been evolving our understanding of the key drivers behind those risks as well as required mitigating actions. The following pages outline those details. Strategic transformation Emerging technology Data collection and analysis Health and safety Contract management People management Regulatory compliance IT Security Sustainability Macroeconomic and political environment Our exposure to financial risks is disclosed in note 4.3 to the consolidated financial statements. 2024 operational risk agenda Health & Safety The health, safety and wellbeing of our employees, customers and visitors to the facilities we manage remains a priority and a key risk area. In 2024, we continued the drive for improve- ments through launch of a new Group Health & Safety strategy which includes the introduction of stronger standards, a new assurance framework, improved training and more robust risk assessment practices. Sustainability Our ability to deliver on our sustainability goals and support our customers in their journey remains one of our key risks. In 2024, we restructured our ESG governance framework to bet- ter coordinate our strategic initiatives across all three domains. We also updated our strategic priorities and launched Leading frontline employer embedding our activities in the social sustainability domain. Furthermore, in the environment space, we took steps to implement a systematic approach to carbon reporting and continued to implement standard requirements and transition plans throughout our business. Regulatory compliance In recent years, we have observed an increase in activity from a number of regulatory bodies. We expect this trend to continue with the implementation of regulations for CSDDD and AI on the horizon. Many regulations, such as NIS 2.0 or DORA, impact us indirectly with compliance being driven by our customers who are directly impacted by these regulations. We are con- stantly making efforts to identify such cases and demonstrate our compliance. 39 Our business Strategic transformation Emerging technology Data collection and analysis Health and safety Contract management What Failure to execute the ongoing OneISS strategic transformation, aimed at enhancing the operating model, strengthening competitiveness and driving financial results Risk that ISS will not be able to suffi- ciently leverage rapidly emerging, new technologies (e.g. AI), leading to missed opportunities related to poten- tial productivity gains and/or deploy- ment of new services Risk that ISS will not be able to leverage data, related both to internal processes and delivered services, to obtain meaningful insights enabling new or improving existing service offering, as well as meeting client requirements for data and actionable insights Failure to design and implement, within our internal processes and service delivery, sufficient health and safety mechanisms that would prevent inci- dents affecting either our placemakers or customers Failure to identify, assess and manage key risks and opportunities in customer contracts, throughout entire contract lifecycle (incl. bid / solutioning phase), thus adversely impacting profitability, leading to operational or regulatory non-compliance or suffering financial loss or reputational damage Driver Continued execution of the OneISS strategic transformation, that spans across the global organisation. Scale of the transformation, which covers multiple cross-functional projects, impacting a wide range of processes, IT systems, frameworks and operating models, bears the inherent complexity Complex nature of emerging technology not yet widely applied across the FM industry could result in insufficient speed of adoption Lack of structured and available data due to the broad and differing methods of service delivery to our customers across our global organisation The wide range of services, often manual activities, provided by our placemakers in customer workplaces across the globe, including high-risk environments and services Diversity of ISS’s service portfolio translates to a variety of contractual arrangements with customers. As the complexity of delivered services grows, so does the complexity of contractual requirements and ultimately – inherent risk of failure in contract management Mitigation EGM strategy refresh completed and leading to updated strategic priori- ties in December 2024 Operation of a dedicated Transfor- mation Office in the EGM structure Continued execution of priority projects, incl. clear road maps for implementation Constant monitoring of risks within the transformation projects Governance structures and a collaboration framework between IT, Commercial and Operations functions Strengthening of internal technology development capabilities (incl. Tech Centre in Porto) Collaboration with well-established global technology partners to enhance understanding of emerging technologies and the benefits they may have to our service offering Governance structures and collaboration framework between functions Customer engagement and employee satisfaction cross-survey data analysis Improved account-level financial data platform Revision of product life cycle process, that ensures data insights are embedded into the service development process Development of a new Global H&S Strategy with full implementation in 2025, including a new 3-year cultural improvement programme and improved training interventions Continued promotion of a strong, positive safety culture across our organisation Continued executive-level support and funding of new strategy Implementation of a revised Group H&S Standard with enhanced control requirements and new assurance framework Standardised commercial bid process, including governance structure and procedures that involve variety of subject matter experts across the organisation Standardised contract transition model, incl. internal certification programme for transition experts Review of our standardised bid to operations process and identification potential improvements to be designed and implemented in 2025 Standardised service delivery policies, including contractual obligations management Strengthened cross-country cooperation for global key accounts Strengthened governance of partnership country organisation 40 Our business People management Regulatory compliance IT Security Sustainability Macroeconomic and political environment What Risk that ISS will not be able to attract and retain the right people in order to maintain operations and meet our customer obligations Failure to comply with applicable laws and regulations, incl. labour law, data protection and cybersecurity regulations and required licenses and permits which may lead to regulatory, operational, and reputational losses ISS being target of cyber attacks leading to business disruption and/ or disclosure of ISS and/or our business partners’ data Risk that ISS will not be able to deliver on own sustainability goals and targets and will not be able to support customers’ Net Zero journey Unstable and/or unfavourable economic, financial and/or currency conditions, as well as political environment and instability Driver Peak wage inflation and labour- shortage in certain geographies as well as increased expectations towards employers, beyond simple remuneration and encompass wider social responsibility requirements. Demographic changes, fuelled by aging society and migration, will further limit availability of key talent in certain regions ISS operates a wide variety of services across a multitude of geographies which require differing levels of regulatory compliance which, in some cases, are growing in complexity. Consequently, there is a greater risk of regulatory non-compliance if both adequate and effective control measures are not implemented and maintained State sponsored attacks due to geopolitical tensions Double extortion attacks, where criminals not only compromise the infrastructure with ransomware, but also demand payment for not selling or publishing acquired data Environmental impact is driven primar- ily by carbon emissions, 95% of which are within Scope 3 Social impact is inherent to the ISS business model, that relies on 325,000+ placemakers to deliver our services Governance dimension is driven by the complexity of international, multi- cultural markets ISS operates in Service delivery in a multitude of countries globally requires us to consider political and macroeconomic environment both on global and local markets. External drivers, i.e. persistent geopolitical tensions, hybrid warfare, supply chain disruptions, inflationary pressures and economic slowdown might directly or indirectly impact service delivery and its profitability Mitigation Launch of new strategic priority Leading frontline employer, including continued development of operating model for people processes to enhance employee experience, supported by dedicated tools and internal platforms Re-launch of people engagement survey, covering over 325,000 global employees, to better identify their needs and shape our employer value proposition Development of the sustainable wage pledge Development of tailor-made recruitment plans for specific countries and/or regions Continued implementation of DIB strategy Strengthening of functional expertise to build compliance-focused culture Implementation of robust compliance framework and standardised, global approach towards monitoring and ensuring compliance with laws and regulations Compliance-related projects targeting specific future regulatory requirements impacting ISS’s business Monitoring of upcoming regulatory changes and initiatives Continued build-out of maturity of security operations, including proactive vulnerability and threat discovery capabilities 24/7 SOC team with detect and response capabilities Cyber risk function driving ownership and actions on identified areas of vulnerability Cyber awareness campaigns on an ongoing basis Integration of IT security into business processes, including commercial and operations, to support the security agenda of both ISS and customers Restructuring of ESG governance framework and ownership to support cross-functional collaboration Design and implementation of sustainability reporting framework Development of the living wage pledge Code of conduct policy and speak-up Defining science-based targets and transition plans including paths to achieve them Implementation of a carbon management tool allowing for tracking, monitoring and reporting Integrating carbon management into our service products, incl. reduction of GHG emissions from food and reduction of food waste Enhancing macroeconomic and political risk analysis in the commercial bid process when considering involvement in new markets Monitoring of macroeconomic indicators and political environment in existing markets Implementation of standards governing inflation approach in our contracts Implementation of minimum requirements in contracts with suppliers and subcontractors Crisis management structures both on group and local levels Business Continuity Management framework Physical Security function managing physical security threats 41 CASE CASE Global focus has shifted towards reducing the environ- mental impacts of company operations, and organisations are striving to implement more sustainable practices. As a result, customers are increasingly looking for a partner who can support them in delivering positive impacts and achieving their sustainability goals. This was recently confirmed as a top three customer need in the strategic review we conducted in 2024. ISS UK & Ireland Operations Performance Sustainability team is proud to support our customers in achieving their Net Zero goals through the delivery of our energy manage- ment products. Beginning in 2022, the Building Optimisation Programme was designed to reduce energy consumption across our customer portfolios by improving the operational efficiency of their existing assets and infrastructure. The delivery of Building Optimisation Programmes is supported through a combination of technology, utilising the Sustainability@ISS data platform to provide analysis and insight into energy-saving opportunities and consumption anomalies. The technical expertise of the Operations Performance Energy Management Team, along with the engagement of our Placemakers who utilise their extensive site knowledge, ensures that programmes delivers targeted outcomes, directly impacting customers’ utility costs, energy consumption, and carbon emissions. All of these can be monitored, reported, and validated in line with internationally recognised industry best practices. Initially developed for a key account within the global banking sector, the Building Optimisation Programme has expanded its delivery across further segments for our customers within global and UK banking and production sectors. Over the past 12 months, there has been a focus on customers where the programme is being delivered utilising additional data sources to enhance analytics and modelling processes, providing more granular insight into energy-consuming assets onsite and building utilisation. This has identified opportunities to increase energy savings while maintaining previously delivered savings. Using behaviour change, training our Placemakers and customer employees, and emerging technologies, the Building Optimisation Programme has evolved during delivery for our customers, aligning with decarbonisation and ESG targets. Since its inception in 2022, the Building Optimisation Programme has saved over DKK 59 million for our customers across 330 sites in over 15 countries and counting. Carbon reduction through energy management SUPPORTING OUR CUSTOMERS’ NET ZERO JOURNEY “The contract extension of the Building Optimisation Programme is a testament to the great partnership that has developed between the customer and ISS. The partnership had the foresight to look at the impact a carbon reduction programme could have, and the results are astounding. This extension gives both parties the opportunity to further develop solutions that aid the customer’s drive to Net Zero.” Aidan Bel Chief Operating Officer for Operations Performance UK&I 30.6 DKKm saved 4,359 tCO 2 reduced 26.7 GWh energy saved 2024 key savings from the programme Our governance 43 Our governance CORPORATE GOVERNANCE Corporate governance Transparency, constructive stakeholder dialogue, sound decision-making processes and controls are key aspects of our corporate governance for the benefit of ISS and our stakeholders. Framework The Board of Directors (the Board) continuously reviews and develops the Group’s corporate governance framework and policies in response to the Group’s strategic development, activ-ities, business environment, corporate governance recommen-dations and statutory requirements. Management Management powers are distributed between our Board and our Executive Group Management Board (the EGMB). No person serves as a member of both corporate bodies. Our EGMB carries out the day-to-day management, while our Board supervises the work of our EGMB and is responsible for the overall management and strategic direction. The members of the EGMB are the Group CEO and the Group CFO. Together, they form the management registered with the Danish Business Authority. The Group has a wider Executive Group Management (the EGM), whose members are three Corporate Senior Officers in addition to the EGMB. The rules on the governance of ISS A/S, including share capital, general meetings, shareholder decisions, election of members to the Board, etc., is described in the Articles of Association which are availablehere In the review of our governance structure on p. 45, we have outlined the primary responsibilities of the Board and the EGM as well as 2024 activity by Board committees. New Group CFO and EGM changesOn 3 June 2024, Mads Holm took up the position as Group CFO and member of the EGMB registered with the Danish Business Authority. On 9 January 2025, ISS announced changes to the EGM, see p. 49. Board composition The Board currently consists of ten members, seven elected by the general meeting and three elected by and among the employees. (GOV-1 §21(a)).Board members elected by the general meeting stand for election each year. Changes to the Board following the annual general meeting on 11 April 2024 as well as changes made during the year are described in the box on the next page. Board bios, see pp. 47-48. Employee representatives are elected on the basis of a voluntary arrangement regarding Group representation for employees of ISS World Services A/S as further described in the Articles of Association. Employee representatives serve for terms of four years. Two of the current employee representa-tives joined the Board after the annual general meeting in April 2023 and one of the current employee representatives was elected at a Supplementary Election held on 3 December 2024. (GOV-1 §21(b)). All board members are independent, except for the employee representatives. (GOV-1 §21 (e)). Board evaluation In 2024, the Board performed its annual evaluation of the Board’s performance with assistance by an external advisor. Each member of the Board and the Group CEO and CFO answered bespoke online questionnaires and participated in in-depth personal interviews. The evaluation included evaluating the strategy development and implementation; risk awareness, monitoring and reporting; cooperation with and evaluation process of CEO and execu-tive management; board composition and dynamics; on- and off-boarding; meeting structure and effectiveness; contribution of committees and Deputy Chair; evaluation of the Chair; and evaluation of the contribution of each board member (GOV-1 §23 / §23 (a)). The results were reviewed by the Nomination Committee and discussed at the Board meeting in December 2024, where the external advisor also attended and provided feedback. The individual member’s contribution was subsequently reviewed as part of individual meetings held between the Chair and each member. Overall, the Board was evaluated by the external advisor to be very well-functioning and generally highly effective, with a collaborative and inclusive environment led by the chair. The evaluation identified a few focus areas to strengthen the Board’s performance and value contribution further during 2025: i) sharpen focus on high-priority strategic topics and implementation, while minimizing time spent on less critical issues and ii) enhanced focus on pre-read material and pres-entations to leave sufficient time for discussion and ongoing feedback. For further details, see response to recommendation 3.5.1 of the 2024 Statutory report on Corporate Governance. Board matters Purpose The Board had a strong focus on ISS’s purpose and worked continuously on promoting a good culture and sound values in 2024. The focus is supported even further, through the inclusion of ESG targets as separate objectives in the Short-Term-Incentive programme, see the 2024 Remuneration Report. 2024 specific matters Strategy review Appointment of new Group CFO Health & Safety development Sustainability (ESG) Activating our cultural ambition Employee engagement Review of commercial pipeline and feed-back through customer cases Deutsche Telekom – performance and contractual disagreements Strategic positioning in Türkiye M&A opportunities Share buy-back distribution Shareholder engagement Recurring matters The Board transacted various recurring matters which are provided in the governance structure overview on p. 45. 44 Our governance Board changes At the annual general meeting on 11 April 2024, Henriette Hallberg Thygesen was appointed as new board member. On 12 August 2024, Nada Elboayadi stepped down as employee-elected board member. On 3 December 2024, Tove Møller Eriksen was elected as employee-elected board member. On 9 January 2025, Henrik Lind and Jens Bjørn Andersen were nominated as new board members for election at the annual general meeting on 11 April 2025. Jens Bjørn Andersen was nominated as new Deputy Chair. Søren Thorup Sørensen has decided not to seek re-election at the 2025annual general meeting. Meeting attendance Board Audit & risk Remu-neration Trans-action Nomi-nation Niels Smedegaard, Chair 11/11 4/4 5/5 3/3 Lars Petersson, Deputy Chair 11/11 5/5 Kelly Kuhn 11/11 4/4 3/3 Søren Thorup Sørensen 10/11 7/7 Ben Stevens 11/11 7/7 5/5 Reshma Ramachandran 11/11 4/4 3/3 Henriette Hallberg Thygesen 1) 8/10 5/6 Signe Adamsen (E) 11/11 Rune Christensen (E) 11/11 Tove Møller Eriksen (E) 2) 1/1 Left in 2024: Nada Elboayadi (E) 3) 0/5 1)Joined the Board on 11 April 2024 2)Joined the Board on 3 December 2024 3)On leave from December 2023 and left the Board on 12 August 2024 Assurance The independent auditor audits the Group’s financial statements and expresses a reasonable assurance opinion. No opinion or conclusion is provided for the Management review, except for the Sustainability statement. The independent auditor conducts a limited assurance engagement on the Group’s Sustainability statement and expresses a limited assurance conclusion. Group Internal Audit (GIA) is responsible for providing an objective and independent assessment of the effectiveness and quality of the internal controls through delivery of the internal audit plan ap-proved by the Audit and Risk Committee (ARC). GIA operates under a charter, which is reviewed and approved annually by the ARC. The internal audit plan for 2024 was prepared based on the outcome of the Group Risk review and incorporated audits cov-ering the areas of financial reporting controls, internal controls on ISS’s largest strategic key accounts, the control environment in ISS country organisations, information technology and com-pliance (internal and external regulations). GIA monitors the actions of management to address observa-tions made on the internal control environment to ensure con-trol gaps are resolved adequately. Regular reports on the status of open observations are made to both the EGM and ARC. Speak Up (whistleblowing) Our Speak Up Policy is a fundamental element in our approach to responsible business conduct. Information regarding the Speak Up system, including detailed run-through of the process, can be found in our 2024 Sustainability statement in G1-1, p. 96. Data ethics The Group’s Data Ethics Policy (the Policy) describes ISS’s approach to data ethics and aims to encourage our placemak-ers and partners, to have an active involvement in data ethical questions and to raise concerns ensuring continuous develop-ment of the guiding principles. The Policy as per section 99d in the Danish Financial Statements Act, adopted by the EGM and the Board and subject to annual review, is described in S4-1, Policies on p. 81, and also available here Governance report The report includes a description of our gov-ernance structure, the main elements of our internal controls related to financial reporting and our position on the Danish Corporate Governance Recommendations. Compliance with recommendations Except for recommendation 1.1.3, Publica-tion of quarterly reports, we comply with the recommendations. We publish full- and half-year financial results and Q1 and Q3 trading updates in line with international industry practice. This reporting format is selected to balance focus between short-term performance and long-term value creation. Investor presentations are held quarterly via live webcast/telephone conference. 45 Our governance Board of Directors The Board is responsible for the overall management and strategic direction of the Group, including: strategy plan, including sustainability strategy and targets (GOV-1 §22 (d)) financial projections determining appropriate qualifications, experience and competences of the Board and EGMB (GOV-1 §22 (d)) appointing EGMB members supervising the activities of the Group reviewing the financial position and capital resources to ensure that these are adequate The Board reviews the Group’s share and capital structure on an ongoing basis. The Board believes the present share and capital structure serves the best interests of both the shareholders and ISS as it gives ISS the flexibility to pursue strategic goals, thus supporting long-term shareholder value combined with short-term shareholder value in accordance with the capital allocation policy. The Board receives monthly financial reporting and is briefed on important matters in between board meetings. The Board held 11 meetings in 2024. 2024 Board committee activities Audit and Risk Committee (ARC) Held 7 meetings in 2024 and continued its focus on: evaluating the external financial and ESG reporting, material accounting policies and significant accounting estimates and judgements related to e.g. impairment tests, divestments, deferred tax and revenue and related customer receivables reviewing and monitoring the Group’s risk management, in-ternal controls, Speak Up (whistleblower) system and business integrity matters monitoring the Group Internal Audit function evaluating the Financial Policy, the Dividend Policy and the Group Tax Policy monitoring and considering the relationship with the external auditor and the external assurance provider in respect of ESG reporting, reviewing the audit process and the long-form audit report, and recommending on appointment of external auditor and external assurance provider in respect of ESG reporting Remuneration Committee Held 4 meetings in 2024 and continued its focus on: reviewing the remuneration policy/guidelines on incentive pay recommending the remuneration of Board and EGMB mem-bers and approving remuneration of EGM Nomination Committee Held 3 meetings in 2024 and continued its focus on: assisting in ensuring that appropriate plans and processes are in place for the nomination of candidates to the Board and the EGMB evaluating the composition of the Board and the EGMB recommending nomination or appointment of Board, EGMB and board committee members Transaction Committee Held 5 meetings in 2024 and continued its focus on: reviewing and making recommendations on certain large acquisitions, divestments and customer contracts following and considering large transactions, including reviewing pipeline and ISS’s procedures reviewing material new financing, refinancing or material variation of existing financing and proposals for equity or debt issuance Executive Group Management The EGM is responsible for the day-to-day management, including: developing and implementing strategic initiatives and Group policies designing and developing the organisational structure monitoring Group performance managing ESG activities as reflected in our Sustainability Policy evaluating and executing investments, acquisitions, divestments and large customer contracts assessing whether the Group has adequate capital resources and liquidity to meet its existing and future liabilities establishing procedures for accounting, IT organisation, risk management and internal controls the EGM has established a number of committees; Sus-tainability1)(see p. 55), Remuneration, Business Integrity and Disclosure Country leadership Responsible for the implementation of the strategy on country level and managing the business in accordance with Group policies and local legislation, including managing oper-ations in their market. Country leadership teams are set out under each relevant country at www.issworld.com 1)From February 2025 the Sustainability Committee will be organised as an opera-tional committee headed by the Group Chief People & Technology Officer rather than an EGM committee. The annual wheel for EGM meetings now includes at least quarterly sustainability updates. Governance structure Shareholders of ISS A/S Exercise their rights at the annual general meeting (AGM) Board of Directors 7 AGM elected members (100% independent) 3 employee representatives Board committees 4 committees Executive GroupManagement Board Group CEO & Group CFO registered with the Danish Business Authority (the EGMB) Executive GroupManagement (EGM) A wider EGM comprising 3 Corporate Senior Officers in addition to the EGMB Country leadership Country managers of 25 countries Board bios,pp. 47-48 EGM bios, p. 49 46 Our governance STATUS ON Diversity The Board and the EGM recognise the importance of promot-ing diversity at management levels and have implemented policies regarding diversity in respect of Board and EGM nom-inations according to which we are committed to selecting the best candidate. When considering qualifications, experience and competencies, emphasis is (based on a recommendation from the Nomination Committee) placed on: experience and expertise; diversity of gender, age and nationalities as well as in broader terms; and personal characteristics matching ISS’s values and leadership principles. The overall relevant experiences and competencies for board members are included in the ISS A/S Competencies & Diversity policy, available here The specific competencies for each board member are listed on pp. 47-48, including the specific ESG competencies marked with the letter “E” for Environmental, “S” for Social and/or “G” for Governance. The competencies for each board member are an-nually reviewed, including competencies within our sustainabil-ity-related material impacts, risks and opportunities. Expertise within business conduct is included in the special competence identified as Corporate responsibility & sustainability. In terms of nationalities, 60% of the EGM members were Dan-ish, 20% British and the remaining 20% were Norwegian. (GOV-1 §21 (d)). In our Board, 44% of the members were Danish, 14% Swedish, 14% British, 14% Swiss and the remaining 14% were American. (GOV-1 §21 (d)). The Group Diversity, Inclusion & Belonging policy, available here Gender Gender balance is, and has always been, a vital part of our Diversity, Inclusion and Belonging (DIB) agenda. As part of our DIB strategy, we have defined a target of achieving at least 40% gender balance at corporate leadership levels by 2026. Our actions to reach our target for corporate leadership are further described in our Sustainability statement, see S1-5, Gender balance, p. 73 and S1-9, Diversity metrics p. 75. In our EGM, the female representation decreased to 20% following the changes to the management team as of 9 January 2025, see p. 46. At 31 December 2024, female representation was 25% (2023: 22%). (GOV-1 §21 (d)). In our Board, the female representation was 43% (AGM elected) and 50% including employee representatives. (GOV-1 §21 (d)). A status on gender balance for the Board at 31 December 2024 is provided to the right, together with diversity in terms of nationality and special competencies. To promote, facilitate and increase the number of women in corporate leadership, we continue leveraging our DIB policy, which defines a number of initiatives, e.g.: our recruitment policy, requiring that we short-list at least one female candidate in all internal and external searches for vacant positions develop succession planning with the aim of identifying gender balanced successors by building and developing balanced pipeline engage with comparative companies and external bodies promoting women in leadership as well as engaging with our Gender Balance Employee Resource Group (ERG). EGM Female representation 20% Nationalities Danish 60%British 20%Norwegian 20% Corporate leadership Female representation 37% Board1) Female representation 43% 50% incl. employee rep. Nationalities Danish 44%Swedish 14%British 14%Swiss 14%American 14% Special competencies 100% Strategy & value creation 100% Corporate responsibility & sustainability 86% Leadership of large international, multicultural companies 86% Transformational change & operational alignment 57% Finance, accounting & tax 57% People development, succession planning, diversity & remuneration 43% Investors & capital markets 43% Risk management 43% IT, technology & digitisation 43% International service industry 29% Sales & marketing, incl. complex, large-scale sales processes 1) Board members elected at the annual general meeting. 47 Our governance Niels Smedegaard (1962) Chair Gender: Male First elected (until): April 2021 (2025) ISS committees Nomination committee (C) Remuneration committee Transaction committee Board and management positions (GOV-1 §21 (c)) Nordic Ferry Infrastructure Holding AS (C, C of 1 subsidiary, BM of 1 affiliated company) Bikubenfonden (C) Falck A/S (C, NRCC) DSV A/S (BM, ACM) Through Transport Mutual Insurance Associated Ltd. (BM, BM of 1 subsidiary) UK P&I Club (BM) Frederiksbergfonden (BM) Special competencies (GOV-1 §21 (c)) International service industry Strategy & value creation Leadership of large international, multicultural companies Transformational change & operational alignment IT, technology & digitisation Finance, accounting & tax Investors & capital markets Corporate responsibility & sustainability (E/S/G) Lars Petersson (1969) Deputy Chair Gender: Male First elected (until): April 2022 (2025) ISS committees Transaction committee Board and management positions (GOV-1 §21 (c)) CEO of VELUX Group Special competencies (GOV-1 §21 (c)) Strategy & value creation Leadership of large international, multicultural companies Transformational change & operational alignment Risk management Corporate responsibility & sustainability (E/S/G) Kelly Kuhn (1965) Board member Gender: Female First elected (until): April 2021 (2025) ISS committees Remuneration committee (C) Nomination committee Board and management positions (GOV-1 §21 (c)) CWT (Special advisor) McChrystal Group LCC (Strategic advisor) WNS Global Services (Senior Advisor) Computacenter plc (ACM, NCM, RCM & independent non-executive director) Special competencies (GOV-1 §21 (c)) International service industry Strategy & value creation Leadership of large international, multicultural companies Transformational change & operational alignment People development, succession planning, diversity & remuneration Sales & marketing, including complex large-scale sales processes Corporate responsibility & sustainability (E/S/G) Board of Directors (GOV-1 §22 (a)) Meet the Reshma Ramachandran (1978) Board member Gender: Female First elected (until): April 2023 (2025) ISS committees Remuneration committee Nomination committee Board and management positions (GOV-1 §21 (c)) Boston Consulting Group (Senior Advisor) APCOA Group (Chief Transformation Officer & Executive Board member) Special competencies (GOV-1 §21 (c)) Strategy & value creation Leadership of large international, multicultural companies Transformational change & operational alignment IT, technology & digitisation People development, succession planning, diversity & remuneration International service industry Corporate responsibility & sustainability (S/G) Ben Stevens (1959) Board member Gender: Male First elected (until): April 2016 (2025) ISS committees Audit and Risk committee (C) Transaction committee (C) Board and management positions (GOV-1 §21 (c)) Page Group plc. (ACC, NCM, RCM & Senior Independent Director) Special competencies (GOV-1 §21 (c)) Strategy & value creation Leadership of large international, multicultural companies Transformational change & operational alignment IT, technology & digitisation Finance, accounting & tax Investors & capital markets Risk management Corporate responsibility & sustainability (S/G) C: Chair, Board of Directors DC: Deputy Chair, Board of Directors BM: Member, Board of Directors ACC: Audit Committee Chair ACM: Audit Committee Member NCM: Nomination Committee Member RCM: Remuneration Committee Member SCM: Sustainability Committee Member NRCC: Nomination/Remuneration Committee Chair Full bios are available here 48 Our governance Søren Thorup Sørensen (1965) Board member Gender: Male First elected (until): April 2020 (2025) ISS committees Audit and Risk committee Board and management positions (GOV-1 §21 (c)) KIRKBI A/S, (CEO, BM and/or management in 5 subsidiaries) LEGO A/S (DC, ACC) Koldingvej 2, Billund A/S (BM) Merlin Entertainments Limited (BM, ACC, RCM (and BM of 4 affiliated companies)) Ole Kirk´s Foundation (BM) ATTA Fonden (BM) K2 Fonden af 2023 (BM) Special competencies (GOV-1 §21 (c)) Strategy & value creation People development, succession planning, diversity & remuneration Finance, accounting & tax Investors & capital markets Risk management Corporate responsibility & sustainability (G) Signe Adamsen (1967) Employee representative Gender: Female First joined (until): July 2022 (2027) ISS position Group Head of Environment, Social Sustainability and Governance (ESG) Special competencies (GOV-1 §21 (c)) International service industry Strategy & value creation People development, succession planning, diversity & remuneration Corporate responsibility & sustainability (E/S/G) Tove Møller Eriksen (1967) Employee representative Gender: Female First joined (until): December 2024 (2027) ISS position Head of Optimisation and Internal Controls Special competencies (GOV-1 §21 (c)) International service industry Finance, accounting & tax Risk management Corporate responsibility & sustainability (S/G) Henriette Hallberg Thygesen (1971) Board member Gender: Female First joined (until): April 2024 (2025) ISS committees Audit and Risk committee Board and management positions (GOV-1 §21 (c)) Terma (CEO) Vestas Wind Systems AB (BM, ACM) Special competencies (GOV-1 §21 (c)) Strategy & value creation Leadership of large international, multicultural companies Transformational change & operational alignment Finance, accounting & tax People development, succession planning, diversity & remuneration Sales & marketing, including complex large-scale sales processes Corporate responsibility & sustainability (E/S/G) Rune Christensen (1972) Employee representative Gender: Male First joined (until): November 2023 (2027) ISS position Head of Legal Affairs and M&A Support Special competencies (GOV-1 §21 (c)) International service industry Strategy & value creation Risk management Corporate responsibility & sustainability (G) C: Chair, Board of Directors DC: Deputy Chair, Board of Directors BM: Member, Board of Directors ACC: Audit Committee Chair ACM: Audit Committee Member NCM: Nomination Committee Member RCM: Remuneration Committee Member SCM: Sustainability Committee Member NRCC: Nomination/Remuneration Committee Chair Full bios are available here Board of Directors (GOV-1 §22 (a)) Meet the 49 Our governance Kasper Fangel Group CEO – since September 2023 Joined ISS: 2009 Member of the Executive Group Management Board of ISS A/S registered with the Danish Business Authority. Previously held positions within ISS as Group CFO, Head of Group Finance and Controlling, Regional CFO (Western Europe) and various other positions within finance. (GOV-1 21(c)) Mads Holm Group CFO – since June 2024 Joined ISS: 2024 Member of the Executive Group Management Board of ISS A/S registered with the Danish Business Authority. Previously held positions within Equinor as CFO of Equinor Renewables and as Head of Treasury and Tax and Head of Finance. (GOV-1 21(c)) Carl-Fredrik Langard-Bjor Group Chief Commercial & Revenue Officer – since January 2025 Joined ISS: 2011 Previously held positions within ISS as Regional CEO Northern Europe, CEO ISS Norway, Head of Key Accounts Norway and Commercial Director Norway (GOV-1 21(c)) Liz Benison Group Chief People & Technology Officer – since January 2025 Joined ISS: 2021 Previously held position within ISS as Chief Peo- ple & Transformation Officer and CEO ISS UK&I. Prior to joining ISS, held various senior manage- ment positions, including Managing Director, Mainland Europe of Arriva Group and CEO UK and Europe (Local & Regional Government) of Serco PLC. (GOV-1 21(c)) Troels Bjerg Group COO – since January 2025 Joined ISS: 2009 Previously held positions within ISS as CEO Asia-Pacific/Americas/Germany & Global Business Performance, Group COO, Regional CEO North- ern Europe, Regional CEO Nordic and Regional CEO Eastern Europe (GOV-1 21(c)) Executive Group Management Meet the New Group CFO On 3 June 2024, Mads Holm took up the position as Group CFO and member of the Ex- ecutive Group Management Board of ISS A/S registered with the Danish Business Authority, which now consists of Group CEO Kasper Fangel and Group CFO Mads Holm. EGM changes On 9 January 2025, the EGM was reduced to five members to successfully implement the strategic priorities. Consequently, Agostino Renna (former Chief Commercial and Commu- nication Officer), Markus Sontheimer (former Chief Information and Digital Officer) and Celia Liu (former CEO of Central and Southern Europe) left ISS after a transition period. As part of the changes, three of the existing EGM members had changed responsibility: Carl-Fredrik Langard-Bjor took up the posi- tion as Chief Commercial & Revenue Officer Liz Benison took up the position as Chief People & Technology Officer Troels Bjerg took up the position as Group Chief Operating Officer (COO) On 31 January 2025, Sam Hockman (former Group Chief Operating Officer) left ISS. Full bios are available here Management changes 50 CASE As part of ISS’s commitment towards workplace inclusivity, we are proud to champion age inclusivity and actively address age-related challenges that lead to a productive and multi-generational work environment. ISS Singapore in particular stands out as a beacon of progressive employment practices. Over 55% of its workforce are aged 50 and above, including 31% re-employed after the national retirement age, giving older professionals an opportunity to continue their careers without risk of age discrimination. Making it possible Prioritising re-employment and flexible work, ISS Singapore partnered with the Singapore National Employers Federation to develop a flexi-work arrangement. This provides options for part-time re-employment and a structured career planning policy to accommodate the needs of older employees. Job advertisements are also aligned with the Tripartite Standards of Recruitment Practices, ensuring that age is not a barrier to employment. Beyond this, ISS Singapore also invests in a series of targeted training and development programmes, including the ‘SkillsFuture’ initiatives driven by the Ministry of Education, to equip employees with the necessary skills for career progression and job adaptability. Redesigning inclusive jobs In collaboration with various statutory boards, local institutes and the employee union, our Singapore team focuses on redesigning its jobs and the creation of new roles most suitable for older employees. To give an example, some employees have been retitled as Clean & Green Ambassadors, combining the roles of cleaner and gardener in an urban office environment with the help of cleaning technology. Two of these individuals have even been recognised by the Singapore National Environment Agency with Certificates of Achievement. Technology integration and a curated work environment ISS Singapore is a great believer in using technology to enhance efficiency and reduce physical strain on its older employees. This includes the use of cleaning robots, digital tools, and e-learning platforms tailored to the literacy and skill levels of older colleagues. The work environment itself is often curated to support them, with features such as pictograms to illustrate step-by-step work procedures, colour-coded cleaning materials, and specialised chemical dispensers to make some dexterity heavy tasks easier to manage. Physical wellness is taken very seriously, with free health screenings for employees above 60 years, including checks of eyesight, hearing, physical gait, and high blood pressure. Our Singapore team has received numerous accolades, including the Workplace Safety and Health Council’s Workplace Safety and Health Tech Awards, the SkillsFuture Fellowship & Employer Gold Award, and the National Environment Agency’s Environment Star Awards. They serve as an excellent example of inclusivity and demonstrate the dedication ISS has in championing inclusive workplaces. Championing age inclusivity in the workforce PLACEMAKERS “I’ve been with ISS Singapore for over 20 years, since it was established in 1995. I feel valued and supported every day, and the opportunity to continue working beyond retirement age has been life-changing for me. The flexibility and respect I receive from my colleagues and management have allowed me not only to maintain my career but also to continue contributing in meaningful ways. I’m proud to be part of a company that truly embraces age inclusivity and helps employees like me thrive, no matter their age.” Rosnah Idris HQ Receptionist, ISS Singapore 51 ISS at a glance Sustainability statement 52 Content ESRS 2 General Creating value through sustainability 53 Disclosure requirements in ESRS covered by the Sustainability statement 54 Governance 55 Strategy 58 Impact, risk & opportunities management 64 Social How we create value 66 ESRS S1 – Own workforce 67 Reporting principles for Social 77 ESRS S2 – Workers in the value chain 79 ESRS S4 – Consumers and end-users 81 Environment How we create value 82 ESRS E1 – Climate change 83 Reporting principles for Environmental 88 EU taxonomy 90 Reporting principles for EU taxonomy 91 EU taxonomy Annex II: Revenue 92 EU taxonomy Annex II: CapEx 93 EU taxonomy Annex II: OpEx 94 Governance How we create value 95 ESRS G1 – Business conduct 96 Reporting principles for Governance 98 Other List of datapoints that derive from other EU legislation 99 Introduction The Sustainability statement is prepared in accordance with European sustainability Reporting Standards (ESRS) and is part of the Management review. Disclosures related to Environmental, Social and Governance (ESG) are included in this section. As ISS is a people business, we have chosen to present the disclosure requirements related to “Social” before the requirements for “Environment”. SUSTAINABILITY STATEMENT Sustainability statement 53 GENERAL General Creating value through sustainability As a leading, global provider of workplace and facility services with 325,000+ employees and 40,000+ customers in ~30 countries, where we self-deliver our services, ISS impacts people, societies, and the environment. As a facility service provider, our ‘product’ is our people, which means that our climate footprint is relatively low compared to companies in many other industries. Still, we take full responsibility for mitigating climate change and are committed to pursuing our net-zero ambitions while supporting our customers’ environmental goals. It is in the social domain, however, where we can make the greatest sustainability impact. Sustainability is embedded in our strategy, values, business practices, and decision-making, and we are strongly committed to making a positive difference through ambitious efforts – both within our organisation and in close collaboration with customers and suppliers. We contribute to people and communities by offering safe and inclusive workplaces where everyone is respected for who they are, is fairly compensated, and has opportunities to advance their social mobility. This is the right thing to do and essential for success: engaged people deliver better services and customer experiences. Through data-driven insights and hands-on expertise, we help our customers improve efficiency, adopt sustainable practices, and achieve their environmental goals. At the same time, our self-delivery model and dedicated workforce support our customers in advancing their social progress. In this section Disclosure requirements in ESRS covered by the Sustainability statement 54Governance 55 Strategy58 Impact, risk & opportunities management 64 54 GENERAL Disclosure requirements in ESRS covered by the Sustainability statement ESRS 2 General Page GOV-1 The role of the administrative, management and supervisory bodies 55 GOV-2 Information provided to and sustainability matters addressed by the company’s administrative, management and supervisory bodies 55 GOV-3 Integration of sustainability-related performance in incentive schemes 56 GOV-4 Statement on sustainability due diligence 56 GOV-5 Risk management and internal controls over sustainability reporting 56 BP-1 General basis for preparation of the sustainability statement 57 BP-2 Disclosures in relation to specific circumstances 57 SBM-1 Strategy, business model (SBM) and value chain 58 SBM-2 Interests and view of stakeholders (link to strategy and business model) 59 SBM-3 Material impacts, risks and opportunities (IRO) and their interaction with strategy and business model 59 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities 64 IRO-2 Disclosure requirements in ESRS covered by the undertakings sustainability statement 65 ESRS S1 Own workforce Page S1-1 Policies related to own workforce 67 S1-2 Processes for engaging with own workers and workers’ representatives about impacts 68 S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns 68 S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions 69 S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 73 S1-6 Characteristics of the undertaking’s employees 73 S1-7 Characteristics of non-employee workers in ISSs own Workforce 74 S1-8 Collective bargaining coverage and social dialogue 74 S1-9 Diversity metrics 75 S1-10 Adequate wages 75 S1-12 Persons with disabilities 75 S1-13 Training and skills development metrics 75 S1-14 Health and safety metrics 75 S1-16 Remuneration metrics (pay gap and remuneration ratio) 76 S1-17 Incidents, complaints and severe human rights impacts 76 ESRS S2 Workers in the value chain Page S2-1 Policies related to workers in the value chain 79 S2-2 Processes for engaging with workers in the value chain and workers’ representatives about impacts 79 S2-3 Processes to remediate negative impacts and channels for workers in the value chain to raise concerns 79 S2-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to workers in the value chain, and effectiveness of those actions 79 S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 80 ESRS S4 Consumers and end-users Page S4-1 Policies related to consumers and end-users 81 S4-2 Processes for engaging with consumers and end-users and workers’ representatives about impacts 81 S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 81 S4-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions 81 S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 81 ESRS E1 Environment Page E1-1 Transition plan for climate change mitigation 83 E1-2 Policies related to climate change mitigation and adaptation 84 E1-3 Actions and resources in relation to climate change policies 84 E1-4 Targets related to climate change mitigation and adaptation 86 E1-5 Energy consumption and mix 86 E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 87 E1-7 GHG removals and GHG mitigation projects financed through carbon credits 87 E1-8 Internal carbon pricing 87 ESRS G1 Governance Page G1-1 Business conduct policies and corporate culture 96 G1-2 Management and relationship with suppliers 97 G1-3 Prevention and detection of corruption or bribery 97 G1-4 Confirmed incidents of corruption or bribery 98 G1-6 Payment practices 98 55 GENERAL ESRS 2 General Our services are performed by people at the sites of our 40,000+ customers on a daily basis. It is therefore no surprise that our sustainability impacts, risks and opportunities (IROs) are skewed towards social aspects. We take shared responsibility across the organisation for managing our sustainability IROs, but the weight of our support structures indicates the depth or “overall materiality” of social, environmental and governance aspects. Governance GOV-1Management The Board of Directors (the Board) retains overall oversight of sustainability matters while Executive Group Management (the EGM) is responsible for the day-to-day management of sustain-ability activities as reflected in our Sustainability Policy. The Audit & Risk Committee, a sub-committee to the Board, exercises oversight responsibilities relating to business conduct and internal controls over sustainability reporting. Management oversight of sustainability activities is primarily exercised by the EGM through the Sustainability Committee, a sub-committee of the EGM chaired by the Group Chief People & Technology Officer. The Business Integrity Committee chaired by the Group CFO exercises managerial oversight of business conduct matters. Our Group Head of Environment, Social Sustainability and Gov-ernance is overall responsible for coordination of the operational execution of our sustainability strategy as defined by the Board and EGM. Day-to-day management responsibilities of sustaina-bility activities are delegated and integrated into each relevant functional pillar. Environmental matters are the overall responsi-bility of Operations headed by our Group Chief Operating Officer, social matters are the overall responsibility of Group People & Culture headed by our Group Chief People & Technology Officer and governance matters are the overall responsibility of Group Legal headed by our Group General Counsel. We embed our sustainability activities in our service perfor-mance through four Sustainability Service Line Boards headed by the Global Head of Cleaning, Technical Services, Food and Workplace respectively and with country and functional rep-resentation to ensure enterprise-wide engagement. Managing our material impacts, risks and opportunities does not necessarily follow strict organisational design principles, but require adaptation to how management and oversight is best exercised and executed in our context. Functional man-agement responsibilities for each material topic is described together with the material topic. Key ESG metrics are consolidated and reported internally on a quarterly basis through ESG Controlling & Reporting as part of the Finance function headed by the Group CFO. Targets may be defined as part of managing functional sustaina-bility responsibilities, but does not follow a defined process. Our essential sustainability related targets are endorsed by the EGM. Appropriateness and availability of sustainability related skills and expertise is assessed and evaluated in the same way as any other required or desired skillset or expertise. Our build out of global functions on Sustainability, Decarbonisation, Diversity, Inclusion & Belonging and ESG Controlling reflect the outcome of our ongoing assessment and evaluation process and links directly to our material impacts, risks and opportunities. For a description of the Board’s competency assessment please refer to p. 46. GOV-2Addressing sustainability matters The Board is informed of sustainability matters on a recurring basis. In 2024, 11 of specific sustainability related matters were transacted at board meetings while matters relating to ESG reporting were transacted in three Audit & Risk Commit-tee meetings in addition to business conduct matters being addressed at each meeting. The EGM is informed of sustainability matters on a recurring basis. In 2024, 27 ofspecific sustainability related matters were transacted at EGM meetings. The Sustainability Committee, a sub-committee to the EGM, has a fixed quarterly meeting cadence supplemented by ad hoc updates. ESG governance structure Management Board of Directors (Board), the Audit & Risk Committee and the Executive Group Manage-ment (EGM), see p. 45 Sustainability committee EGM committee1) Chaired by the Group Chief People & Technology Officer Sustainability committee activities Oversight of the sustainability strategy, targets and initiatives Tracking progress of ESG targets and provide relevant guidance Reviewing panel for proposed ESG initiatives and investments Identifying/mitigating sustainability impacts, risks and opportunities Facilitating key stakeholders, incl. customers, employees, investors and regulatory bodies to promote transparency Reviewing sustainability-related policies for EGM approval Head of Sustainability Day-to-day management of ESG activities: E:Group Chief Operating Officer (Group COO) S:Group Chief People & Technology Officer G:Group General Counsel Our Sustainability Policy is available here 1)From February 2025, the Sustainability Committee will be organised as an operational committee headed by the Group Chief People & Technology Officer rather than an EGM committee. 56 GENERAL Governance (continued) Information is generally provided by the functional E, S or G lead supported by internal and external experts. Ongoing manage-ment updates on material sustainability related impacts, risks and opportunities follow information flow cycles decided within the relevant functional area. Impacts, risks and opportunities relating to sustainability matters are not considered differently from other impacts, risks and op-portunities pertaining to ISS’ business. The following material impacts, risks and opportunities related to sus-tainability were addressed directly or as part of overarching themes during 2024 by the Board, the EGM and the Sustainability Committee: Health & safety, climate change mitigation, working conditions, equal treatment & opportunities for all, corporate culture and corruption/bribery. GOV-3ESG and incentive schemes Sustainability-related targets are embedded as part of our short-term incentive programme (STIP) with a 15% weight as approved by the Board Remuneration Committee. Climate-related incentives: 4.7% absolute carbon emission reduction Development of climate transition plans Social incentives: Gender balance progress Living wage progress 26,000 recognised qualifications Customer value propositions Health & safety Governance incentives: Policy and standard compliance levels These objectives are applicable to senior employees across ISS, including the executive leadership teams in all countries as well as the EGM. GOV-4Statement on due diligence Core elements of due diligence Sustainability statement Embedding due diligence in governance, strategy and business model Strategy p. 58 and p. 63 Engaging with affected stakeholders in all key steps of the due diligence Overall stakeholder en-gagement p. 59, Customers p. 59, Employees p. 67-68, Labour organisations p. 68, Value chain workers p. 79, Suppliers p. 97 Identifying and assessing adverse impacts Double materiality as-sessment p. 64, Customer engagement survey p. 64, MyVoice survey, Safety Sur-vey and Diversity Census p. 68, Supplier vetting p. 79-86 Taking action to address adverse impacts Actions in regard to employ-ees p. 69-72, value chain workers p. 79-80, end-users p. 82 and climate p. 84-85 Tracking the effectiveness of these efforts and communicating Internal management reporting p. 55-56, Speak-up channel p. 96 GOV-5Risk management and internal controls Sustainability reporting is a product of input derived from numerous internal and external sources across functions and geographies and relies on systems and processes ranging from locally bespoke and autonomous solutions to being globally aligned and system integrated. The fragmented nature of data sources together with the – compared to financial reporting – relative immaturity of the sustainability reporting discipline are key risk areas. We generally look to adopt same or similar internal control processes for sustainability reporting as for financial reporting though we recognise that there is a significant gap to be caught up over the coming years. The sustainability reporting landscape still evolves at a fast pace, and we therefore also have to balance the need for building robust controls for the current state with sufficient agility to adapt to changing requirements. We generally apply a “domain data ownership” principle across the Group. The function responsible for a particular sustainability matter is also responsible for the data necessary for performance management hereof and for maintaining appropriate controls. Key sustainability metrics are reported and consolidated follow-ing the same structure as our financial reporting process and within the same consolidation system - OneStream. Data for our key sustainability metrics is compiled country-by country by the local functional owners and furnished to a des-ignated ESG Controlling & Reporting function in each country for local controlling and uploading to our global consolidation system. Global controlling is subsequently performed by Group ESG Controlling & Reporting applying a set of pre-defined ma-teriality thresholds and interdependency indicators. In 2023, we defined an initial simplified internal control frame-work for ESG reporting that was piloted during 2024 on key sustainability metrics (employee turnover, sickness rate and Lost Time Injury Frequency). It takes an end-to-end process approach by metric and assesses and prioritises risks on the basis of mitigation impact and effort to mitigate. We are cur-rently considering how to adapt our internal control framework following the learnings from our pilot phase. Findings are shared within the Global ESG Controlling & Reporting and with the Audit & Risk Committee. Fundamental metrics and KPIs on people and safety are report-ed monthly as part of the ordinary financial reporting cycle. On a quarterly basis management reporting on ESG performance is provided to the Sustainability Committee. 57 GENERAL BP-1Basis of preparation The sustainability statement is consolidated following the Group’s accounting policies disclosed in its consolidated financial statements, unless otherwise specified in the accounting policies within each topical ESRS disclosure. We have defined operational control in accordance with the ESRS. In the event of acquisitions or divestments, the sus-tainability statement is following the same principles as the financial statements. We include disclosures on material impacts, risks and opportunities in our upstream and downstream value chain in accordance with the outcome of our Double Materiality Assessment and describe value chain coverage of our poli-cies, actions and targets where applicable. Metrics for Scope 3 emissions and Lost-Time Injury Frequency includes value chain data. We have not omitted classified or sensitive material infor-mation nor any material information on grounds that it constitutes intellectual property, know-how or the results of innovation. Principles and compliance Scope and data quality In 2024, preparations for reporting in accordance with the Corporate Sustainability Reporting Directive (CSRD) and the associated ESRS reporting standards have been extensive and while a foundation has been laid we expect ongoing changes as practices and principles develop across report-ers, industries, regulators and assurance providers. On data quality improving our carbon emission tracking has been a priority that the implementation of our dedicated car-bon management platform – Watershed – will address. It will become fully operational in 2025, slightly later than planned. Our reporting units are our countries. The reporting methodology applied country-by-country depends on the system and process landscape of each country and our consolidated reporting will therefore often span different reporting methodologies. ISS France was divested in the beginning of April 2024. We include the performance of ISS France up to and including March 2024 for metrics internally reported at the time of divestment. Several metrics mandat-ed by ESRS were introduced only after the French divest-ment which is not included for such metrics. Performance in France is included in average employees (S1-6), employee turnover (excl. deaths and retirements) (S1-6) and average training hours (S1-13). Further, France is included in energy consumption (E1-5) and Scope 1-3 emissions (E1-6) except for consumption and emissions relating to diesel and petrol, which is insignificant. France is by definition not included in “end-of-period” metrics. Across our operations we have only a single joint venture operation in Spain, which is insignificant and not adjusted for. External principles and guidelines With the introduction of the CSRD effective as of 1 January 2024 we have aligned our reporting practices accordingly. Our reporting meets the ESRS reporting standards issued with Commission Delegated Regulation (EU) 2023/2772 and is made with reference to the GRI Standards as a result of the interoperability between ESRS and GRI. We report on our UN Global Compact commitment through the designated reporting platform. Internal guidelines As a basis for our reporting, we rely on our ESG Accounting Manual to provide reporting principles and rules to ensure a consistent basis for reporting. In 2024, we have introduced reporting principles covering ESRS mandated reporting re-quirements that supplement the sustainability performance reporting we have been disclosing for many years as part of our annual reporting taking our total internal datapoint reporting from around 75 to around 125 with certain items being disaggregations of already reported datapoints. Actual measurement of underlying data is not always pos-sible. The ESG Accounting Manual provides guidance that reporting units can apply as the basis for reporting. BP-2Specific circumstances Where specific circumstances apply in regard to deviation from mandated time horizons, use of value chain estima-tions, sources of estimation and outcome uncertainty, chang-es in preparation or presentation of sustainability informa-tion and reporting errors in prior periods, disclosures will be made together with the relevant disclosure requirement or with its applicable accounting policy disclosures. People and social metrics are measured without estimates except for non-employees (S1-7), training hours (S1-13), ex-posure hours for non-employees and contractor employees (S1-14), gender pay gap and remuneration ratio (S1-16) and certain gender breakdowns. For E1-5 and E1-6 a low propor-tion of fossil fuel consumption is estimated typically based on spend or travel distance and a medium proportion of other energy consumption is estimated based on m2or building types. For E1-6 a large proportion of scope 3 emissions is subject to assumptions and estimates. Governance metrics are measured without estimates. Phase-in and incorporation by reference We have made use of phase-in options for S1-11, S1-15 and E1-9. In presenting the sustainability statement, ESRS disclosure requirements incorporated by reference to other sections of the Annual Report include: GOV-1: Information related to the Board of Directors and the Executive Group Management (20a and c and 21) on pp. 43-49. Incorporation by reference: Information that is mandatory to disclose as part of the ESRS and which has been placed outside of the Sustainability Statement has been clearly marked as such. It is presented by underlining it in blue and adding the reference as: ESRS-X §X. 58 GENERAL Strategy SBM-1Strategy, business model (SBM) and value chain We are a global provider of outsourced facility services. Our own operations comprise cleaning services, catering services, technical services, security services, reception services and workplace services that we provide to businesses and public customers as integrated facility services or as stand-alone cleaning services. Our overall targeted customer segments are financial services, professional services, technology and life-science as well as customer segments that in a local market context are desirable to pursue such as healthcare services in several countries. This constitutes our downstream value chain. As a service organisation we are people intensive and rely less on products and resources for our service performance. With few exceptions our services do not require high pre-existing skill levels to perform and we are therefore attractive to and employ a significant proportion of our workforce from unskilled or below market-average skilled people groups. Providing opportunity to work and grow can have a significant positive impact on our employees individually and for their families as well as for social mobility in societies. At the same time, less skilled people groups are generally more vulnerable to exploita-tion and its resulting negative impacts. Our strategic decision is to self-perform rather than subcon-tract services. We believe that having a direct employment relationship with our workforce is a culture driver that enhanc-es service performance and supports our ability to increase our positive people and societal impacts and minimise our potential negative impacts. We are present with self-delivery capabilities in around 30 countries across Europe, Asia, Pacific, North Amer-ica and Latin America. In addition, we have partnership estab-lishments in around 30 countries providing services to global customers. During 2024 we divested our business in France. The facility services industry is inherently asset and resource light and our environmental impact from carbon emissions is driven more by our absolute scale than by its intensity, which is underpinned by the fact that our strategic choice to self-de-liver services drives one of our main carbon emission sources; employee commuting. Our supply chain and upstream value chain can roughly be divided into three groups: i) Goods and products used in our service performance such as food, cleaning detergents and equipment, paper towels and vehicle fleet, ii) subcontracted fa-cility services that are same or similar in nature to what we pro-vide and iii) temporary staff to supplement our own workforce. Our main supply chain sustainability input relates to our scope 3 emissions and we are working with key supply chain mem-bers on enhancing the availability of primary data. We do not perform fossil fuel activities, chemical production activities, controversial weapons activities or tobacco activities. Our main sustainability-related goals are linked to our material people and environmental impacts. We aim to enhance our pos-itive people impact and minimise our potential negative people impact by aspiring to become the leading frontline employer. Our sustainability-related goals transcend markets and geogra-phies. Very broadly speaking we will be able to impact societies and markets with lower levels of social and public support systems more positively from our social sustainability-related goals. Our environmental sustainability goals will impact mar-kets and geographies depending on our local activity levels and service mix. Employees (Headcount) 2024End of period 2024Average Northern Europe 65,042 65,881 Central & Southern Europe 106,218 103,744 Asia & Pacific 125,208 126,938 Americas 28,376 29,630 Other 1,639 5,346 Total 326,483 331,539 Revenue (DKKm) 2024 % Office-based 33,273 40% Production-based 19,256 23% Healthcare 12,199 14% Other 19,033 23% Total 83,761 100% NACE codes above 10% of Group revenue CSC00 – Manufacturing CSJ00 – Information and communication CSK00 – Financial and insurance activities CSQ00 – Human health and social work activities Placemakers/Support staff (Headcount) 2024End of period % Placemakers 304,913 93% Support staff 21,570 7% Number of employees in EEA countries (Headcount) 2024End of period % Total employees in EEA countries 87,984 27% 59 GENERAL Strategy (continued) SBM-2 Stakeholders Engagement with stakeholders is organised in appropriate forums at the appropriate organisational level considering the purpose of the engagement and its participants. Feedback loops, escalation principles and reporting lines aim to ensure that the outcome of engagement is filtered appropriately and informs and influences considerations and decisions at the right level of the organisation, including at the level of the EGM and the Board. From time to time we will engage with key stakeholders in dedicated stakeholder impact sessions to ensure that their views are mapped, understood and considered by us. In 2022, we conducted a stakeholder materiality assessment across 24 sustainability topics using a low-high importance scale. We involved key internal Subject Matter Experts at executive and other management levels, support staff and placemakers, as well as external stakeholders like investors, customers, suppli-ers, employee representative organisations and the European Works Council. The outcome shows a strong correlation with key impacts, risks and opportunities identified in our 2023 Double Materiality Assessment. Our 2024 customer engagement survey has directly influenced the outcome of the strategy refresh exercise we completed in December 2024 and is a good example of stakeholder engage-ment having strategic impact. Placemakers We use the term “placemakers” for our own employees. When required by context “placemakers” mean service performing staff sometimes referred to as “frontline” employees, and “support staff” means managerial or other support staff sometimes referred to as “white-collar” employees. People, value-chain and end-users Our strategic decision to self-perform our services provides us with line-of-sight within our organisational and managerial boundaries. We define, execute and control our management approach and response, which enables us to better mitigate negative impacts and enhance positive impacts to our workforce. Through our interactions and business relationships with our supply chain members we may indirectly impact supply chain workers. Our commitment to ethical business practices encompasses respect of privacy rights towards our own employees, custom-er end-users and others that we engage with as part of our activities. Just as we remain vigilant with third parties needing to process personal data of our own employees, we generally ex-perience that our customers take great interest in ensuring that privacy rights of their employees, our end-users, are respected. Key stakeholders and how we engage People Day-to-day engagement with line managers, employee and safety committees, annual appraisal, daily teamboard talks, townhall meetings, MyISS and MyVoice, including our People Engagement Survey Customers Regular performance reviews, ongoing dialogue and ad-hoc workshops, customer surveys, end-user surveys, Account Development Plan Shareholders Investor meetings, roadshows, annual General Meeting, Capital Markets Day, Quarterly Investor Calls, announcements and releases Suppliers Continuous dialogue throughout the year, workshops, business review meetings, site-based performance management meetings, training sessions Unions National and international works councils, ongoing dialogue with unions and local employee representatives, quarterly European Works Council meetings, semi-annual UNI meetings Media Multi-channel and platform dialogue with media and NGOs on an ongoing basis SBM-3IRO and interaction with SBM Our main impacts, risks and opportunities (IRO) relate to people in our workforce and in our value chain. Our 11 material impacts, risks and opportunities are provided in the overview on p. 60 and described in the following. The material impacts to our own workforce are mainly a result of industry characteristics, including the relative low-skill profile of our services and its job positions. Self-performing our ser-vices and a strong values foundation are strategy and business model aspects directly influencing our people impacts. Our own workforce Sometimes referred to as frontline employees or blue-collar workers our service performing placemakers are generally more exposed to our material impacts in regard to occupational health & safety, pressure on working conditions and equal treatment and opportunities. This employee category generally has lower skill requirements though it varies by service line, job type and service environment, but also the greatest potential for bene-fitting from positive impacts in regard to for example upskilling. Approximately 93% of our employees are servicing placemakers. Temporary workers engaged through temp agencies supple-ment or substitute our service performing placemakers. We provide our services globally. Broadly speaking, people im-pacts are the same regardless of geography, but the intensity of impacts are affected by for example the regulatory climate, social welfare systems and cultural aspects of each jurisdiction. Our continued engagement with our placemakers and employ-ee representatives at all levels of the organisation are impor-tant contributors of perspective and insight to areas or aspects of our operations and practices capable of causing harm or having positive influence on our placemakers. 60 GENERAL Our 11 material impacts, risks and opportunities ESG Topic What Impact, risks & opportunities Effect Own operations/value chain Health & Safety (Own workforce) Practices and work environments that are safe and non-hazardous to the health and well-being of workers Our service performance comprise certain elements of hazardous activities – either isolated, of a re-petitive nature or from specific customer environments. Focus on preventing work-related accidents is important for securing the safety and well-being of our placemakers. IR (-) S A Own operations Working conditions (Own workforce) Fair working conditions such as secure employment, adequate wages and freedom of association Job positions in our service lines often have relatively low barriers of entry and offers attractive opportunities for people at the edge of labour markets. Without focus on ensuring proper working conditions, exploitation risk increases at the expense of individuals and the larger society. IR (+)/(-) S A Own operations Working conditions(Value chain) Safe and fair working conditions such as secure employment, adequate wages, freedom of association and work-life balance To some extent we engage subcontractors that perform same or similar services to us. At the same time we rely on our value chain for consumables within areas that traditionally are labour intensive and with low barriers of entry for job positions such as within food, clothing and distribution. Without focus on ensuring proper working conditions, exploitation risk increases at the expense of individuals and the larger society. IR (-) S A Value chain (upstream) Equal treatment and opportunity for all(Own workforce) Environment of non-discrimination and equal opportunities As a large global employer our commitment and active promotion of equal opportunities drives individual opportunity and financial value. Failing to do so – also in light of our workforce including less robust or vulnerable categories of people – will impact individual and societal prosperity as well as business and financial performance. IR (+)/(-) S A Own operations Information-related impacts for consumers and/or end-users(Privacy) GDPR and privacy practices related to customer end-user data Our service performance touches and engages with millions of end-users every day and will regularly involve personal data of end-users either by contract or as a natural consequence of our services. Ensur-ing robust data privacy processes is necessary to avoid indivdual privacy harm as well as potential loss of business and cost exposure. R S Value chain (downstream) Other work-related rights(Own workforce) GDPR and privacy practices related to personal data of our placemakers We employ more than 325,000 placemakers across the globe and will necessarily process personal data in this regard. Keeping personal data safe is not only part of our employer value proposition, but also a potential source of financial damage. R SML Own operations Other work-related rights(Value chain) Practicies and incidents in regard to e.g. child labour, forced labour and privacy Working across industries in a diverse and large value-chain there is a need to uphold and enforce safe-guards on basic work-related rights such as child and forced labour particularly where such industries are people intensive or have known displays of violations. R S Value chain (upstream) Climate change mitigation Reducing or preventing GHG emissions Facility services in general are not high emitting activities with the footprint from food services being the most significant. However, our absolute emissions do leave an impact and we need to pull at least our share of the weight in the global combat against climate change. IR (-) SML A Own operations/value chain Corporate culture Values, beliefs and norms that shape our behaviour and decision-making A value based culture lays the foundation for fair and prosperous development by instilling the right behaviours and the right decisions. R S Own operations Corruption and bribery Fair and transparent business practices Principles around fair business practices are fundamental for prosperous societies. Regulatory frameworks and market perception can drive significant financial consequences where instances of corruption and bribery occur. R S Own operations Management of relationships with suppliers, including pay-ment practices Practices and policies in regard to interaction with suppliers Engaging suppliers on fair terms – particularly where power positions are imbalanced – is critical for driv-ing prosperity for value chain businesses and value chain workers as well as society at large. I (-) S A Own operations/value chain (upstream) (+)/(-) = Positive/negative SML = Short, medium, long term A/P = Actual/potential "S" indicates that effects may materialise in the short term. "M" and "L" indicates that effect may materialise only beyond the short term. 61 GENERAL Strategy (continued) Value chain workers It is a key strategic choice for us to primarily self-deliver our services and our impact on value chain workers is affected by this decision. Yet we still rely on a robust supply chain for goods and services associated with our service performance. Our supply chain can largely be split into two categories. One part is the traditional supply chain that supplies goods and services that form part of our own service performance such as manufacturers of cleaning detergents and equipment, uniforms and food producers. The other category is our subcontractors that generally perform services of a same or similar nature as our own facility services. We engage with subcontractors for facility services that do not form part of our own self-delivery portfolio, for example pest control and lift and escalator mainte-nance. We also engage with subcontractors for performance of services within our own service portfolio in local markets where our self-delivery capabilities do not fully extend. We do not by design distinguish between the two supply chain categories, but we believe that our ability to drive impact is more fluent or intrinsic in regard to subcontractors because we understand and acknowledge the context of our subcontractors as colleagues within the facility service industry and therefore often exposed to similar IROs as we are whereas workers in the traditional supply chain category are exposed to typical impacts associated with their respective industry and geography. This materialises in the material impacts identified for our supply chain workers in relation to working conditions and other work-related rights that pinpoints occupational health & safety for our subcontractors driven by the same factors as for ourselves. It does not identify child labour or forced labour as concrete impact areas, but recognises its generic risk character within our supply chain. The latest ILO reports identifies child labour as predominantly centered around agriculture whereas forced labour is mostly present within the industry sector and the service sector. We generally have access to a diverse supply chain and we are not dependent on any single monopolistic supply chain mem-ber. Further, we have not identified material impacts for value chain workers in our downstream value chain. Our approach towards mitigating potential negative impacts – as explained below – centers around our due diligence ac-tivities where certain elements in regard to training will have a particular impact on subcontractor workers in reducing the risk of occupational health & safety incidents. As a business-to-business operation we engage with public and private customers and through them with their employees as our end-users. Our service engagement frequently requires access to and processing of personal data of end-users for example food allergies relevant to our food services and contact details relevant for our reception services. Other of our service activities such as cleaning services are generally not dependent on personal end-user data. We generally do not process or have access to very sensitive per-sonal data of our end-users that would have significant harmful consequences for end-users if inappropriately managed. There is a significant financial and reputational risk associated with not appropriately managing personal data of our end-users. It violates the trust with affected customers and taints our repu-tation in the market. Regulatory requirements such as those fol-lowing from the General Data Protection Regulation (GDPR) can also lead to significant fines being imposed. Moreover, mitigating measures may be costly to implement to rectify weaknesses. Health & safety (Own workforce) While the nature of the services that we perform is generally not dangerous, the scale of our operations as well as specific hazardous environments imply that accidents and incidents do occur leading to physical or psychological harm for our employ-ees. It will be a risk to our ability to attract and retain employ-ees, if we are not able to provide safe work environments. Health & safety has been a key priority for us for many years and we continue to strengthen our organisation and practices to drive an even stronger safety culture. In 2024, we introduced “safety-stand-downs” for all leaders across the Group hosted by the Group CEO to address serious safety incidents. Despite our best efforts, we are unlikely to completely eliminate health & safety accidents and incidents. We manage health & safety related IROs through a dedicated global Health & Safety function organised within our Operations function headed by our Group Chief People & Technology Officer. Working conditions(Own workforce) Job positions in our service lines often have relatively low bar-riers of entry and offers attractive opportunities for people at the edge of labour markets. Without focus on ensuring proper working conditions, exploitation risk increases at the expense of individuals and the larger society, which may negatively impact our ability to attract and retain our workforce. Our commitment to providing proper working conditions is a natural extension of our values. It is codified in our Code of Conduct and embedded in detail in our Global People Stand-ards. Our Living Wage priority is a key action for us to drive working condition improvement. We manage working condition related IROs to our own work-force through our global People & Culture function headed by our Group Chief People & Technology Officer. Working conditions(Value chain – upstream) Though we perform the majority of our services with our own workforce, we do rely on subcontractors to perform facility services of same or similar nature as ours either because it is part of services that we manage on behalf of customers or because it sits outside of our service offering in a specific market. Impacts from working conditions including health & safety aspects of subcontracted services are largely similar to those from our own service performance and the negative im-pacts for such value chain workers are not materially different from what our own workforce is exposed to. At the same time, we rely on our value chain for consumables within areas that traditionally are labour intensive and with low barriers of entry for job positions such as within food, clothing and distribution where exploitation risk and improper working conditions may exist at the expense of individuals and the larger society. Our Supplier Code of Conduct sets standards for our suppliers to meet in terms of working conditions including occupational health & safety. These have been revised and re-launched in 2024 and is supported by supplier engagement activities in our Supply Chain & Procurement function. We address working condition related IROs to our value chain workers through our value chain engagement managed by our global Procurement function within our Operations function headed by our Group COO in close cooperation with particularly our People & Culture and Legal functions. 62 GENERAL Strategy (continued) Equal treatment and opportunity for all (Own workforce) As a large global employer our commitment and active promo-tion of equal opportunities drives individual opportunity and financial value. Failing to do so – also in light of our workforce including less robust or vulnerable categories of people – will impact individual and societal prosperity as well as business and financial performance. We acknowledge that interaction and dependencies between people will cause positive and negative friction and we are unlikely to succeed in creating only positive experiences for all. But we continue to strive for provid-ing work environments where tolerance, empathy and care are important guardrails. Our Code of Conduct and our Global People Standards establish our commitment to equal treatment and opportunity for all. We have focused our efforts within our five most important diversity & inclusion dimensions and established dedicated global Em-ployee Resource Groups (ERGs) for each dimension. We have set targets for gender balance at our corporate leadership levels, and we are ambitiously pursuing our goal of providing recog-nised qualifications for 100,000 employees and their families to drive additional opportunity for personal growth and prosperity.The target was recently updated to add an additional 250,000 recognised qualifications by 2030. We manage working condition related IROs to our own work-force through our global People & Culture function headed by our Group Chief People & Technology Officer. Information-related impacts (Value chain – downstream) Our service performance touches and engages with millions of end-users every day and will regularly involve personal data of end-users either by contract or as a natural consequence of our services. Ensuring robust data privacy processes is neces-sary to avoid individual privacy harm as well as potential loss of business and cost exposure. Our continued efforts to minimise the risk of negative impacts is anchored in our Data Ethics Policy that provides overall requirements for the use of data in ISS based on the Charter of Fundamental Rights of the European Union. It is support-ed by our Data Protection Policy and our Global Information Security Policy. We manage IROs related to information security through our Global Information Security function within our Global IT, Digitalisation and Services function headed by our Group Chief People & Technology Officer. Other work-related rights (Own workforce) We employ approx. 325,000 employees across the globe and will necessarily process personal data in this regard. Keeping personal data safe and ensuring appropriate personal privacy is not only part of our employer value proposition, but also a potential source of financial damage. Our continued efforts to minimise the risk of negative impacts is anchored in our Data Ethics Policy that provides overall require-ments for the use of data in ISS based on the Charter of Funda-mental Rights of the European Union. It is supported by our Data Protection Policy and our Global Information Security Policy. We manage IROs related to information security through our Global Information Security function within our Global IT, Digitalisation and Services function headed by our Group Chief People & Technology Officer. Other work-related rights (Value chain upstream) Working across industries in a diverse and large value-chain there is a need to uphold and enforce safeguards on basic work-related rights such as child and forced labour particularly where such industries are people intensive or have known displays of violations. Our Supplier Code of Conduct sets standards for our suppliers to meet in terms of work-related rights. These have been revised and re-launched in 2024 and are supported by supplier engage-ment activities in our Supply Chain & Procurement function. We manage IROs in regard to other work-related rights for our val-ue chain workers through our value chain engagement managed by our global Procurement function within our Operations function headed by our Group Chief Operating Officer in close cooperation with particularly our People & Culture and Legal functions. Climate change mitigation Facility services in general are low carbon emitting activities with the footprint from food services being the most significant. However, despite our limited relative impact, we recognise the importance of combining climate advocacy with climate action and demonstrate to stakeholders how we pull our share of the weight in the global combat against climate change. We have anchored our position on climate change in our Sustainability Policy underpinned by the ambitious Net Zero targets for scope 1-3 we have set and work towards. As ~95% of our carbon emissions are within scope 3 we work closely together with our key supply chain partners to ensure credible and tangible reductions. Our carbon emission insights have been significantly improved during 2024 with our new global carbon management platform Watershed that is close to being fully operational, which is an important stepping stone in moving our climate transition plan into a cohesive form in 2025. We manage IROs related to climate change through our global Decarbonisation team within our Operations function headed by our Group COO. Corporate culture A value based culture lays the foundation for fair and prosperous development by instilling the right behaviours and the right decisions. We touch and impact thousands of people every day in our direct operations and activities and through our indirect activities. We make mistakes every day that lead to harm for impacted people and the environment, but we are adamant on continuously seeking to improve by ensuring transparency and safety for information to flow that allow us to take improvement action. Our fundamental values and beliefs are anchored in our Code of Conduct that forms the basis for mandatory training for all employees. We manage IROs related to corporate culture through our global Legal function headed by our Group General Counsel in close cooperation with particularly our Group Internal Audit function. Corruption & bribery Corrupt business practices undermine the stability and pros-perity of societies and impairs fair competition. With business engagements counting thousands of customers and suppliers the risk of improper behaviour is real. One of our fundamen-tal values is “Honesty” and our stance on and against corrupt business practices directly reflects this value. Our public ISS Anti-Corruption and Anti-Bribery Policy Statement by our Group CEO is supported by our Anti-Corruption Policy leaves no doubt around our commitment to combat corrupt practices. We manage IROs related to corruption and bribery through our global Legal function headed by our Group General Counsel in close cooperation with particularly our Group Internal Audit function. 63 GENERAL Strategy (continued) Management of relationships with suppliers Engaging suppliers on fair terms - particularly where power positions are imbalanced - is critical for driving prosperity for value chain businesses and value chain workers as well as society at large. We have a large network of suppliers of all sizes across the globe with whom we can exert influence to drive positive change. Our supply chain relationships are governed by our Supply Chain Policy and our Supplier Code of Conduct. We manage IROs related to our supplier relationships through our value chain engagement managed by our global Procure-ment function within our Operations function headed by our Group COO in close cooperation with particularly our Group Finance function. Current financial effects Our operating cost, operating margins and cash flows are im-pacted by our efforts to mitigate negative sustainability-related impacts and enhance positive sustainability-related impacts. Costs mainly relate to: 1) People resources at group, country and account level fully or partly engaged in sustainability-related activities 2) Training activities 3) IT systems Our sustainability activities are integrated into our functional operations. It is not possible to separate cost and effect from ordinary business activities on the one hand and “excess” efforts in regard to sustainability-related impacts on the other hand. This is because our most material IROs relating to sus-tainability to a large extent are inherent business imperatives that we tackle because of its business importance and not be-cause of a particular sustainability focus. Our efforts to reduce food waste makes our resource use more efficient, which saves cost. That is a business imperative for us as a low margin busi-ness. It also reduces our carbon footprint. Just as an example. We are asset-light by nature and do not consider the carrying amounts of our asset or liability base to be at significant risk of material adjustments from material sustainability-related risks and opportunities. Future financial effects Considering our mitigating efforts we do not anticipate any material financial effect in the short, medium or long term of our material sustainability-related risks and opportunities identified with our 11 defined IROs. We have not identified any significant need for investment or resource funding for specifically addressing our material sustainability-related risks and opportunities over and above what is as part of our ordinary investment and resource planning. Future financial effects of our material sustainability-related risks and opportunities are associated with a high degree of uncertainty, particularly in regard to environmental aspects. Strategy resilience Our strategy and business model is reviewed each year as part of our ordinary business cycle. The process is anchored with the Board and is informed by annual strategy reviews by country and region, which links into our planning. On a quarterly basis the EGM reviews our strategy execution and its resilience towards external factors. Our bi-annual enterprise risk cycle informs the strategy review process and highlights current and evolving themes of importance for the strategy review process. Sustainability-related IROs forms part of our enterprise risk cycle and is further supported by the annual work around our double materiality assessment. We believe that this approach ensures preparedness, responsiveness, adaptability and learning in our strategy and business model making it overall resilient, including resilient to sustainability-related IROs. Our recent strategy refresh completed in December 2024 reconfirms our strategic focus on environmental and social sustainability. Our resilience analysis was conducted as a desktop exercise using publicly available publications. 64 GENERAL Impact, risk & opportunities management IRO-1 IRO and interaction with SBM Our double materiality assessment uncovers our inherent exposure to sustainability-related IROs from, and to our busi-ness, as well as along our value chain. It ignores any actions, initiatives, controls and efforts already in place and instead assesses where we should be focusing. We completed the as-sessment at an IRO level as mandated by the ESRS standards and scored ourselves on a 1-4 scale, influenced by the princi-ples we apply for operational and enterprise risk assessments, as well as statutory reporting and disclosure requirements. We set the materiality threshold based on which topics would need sign off from Executive Group Management (EGM). We conduct a full double materiality assessment process in accordance with ESRS every 2-3 years – latest in 2023 where 20 ISS functional subject matter experts across People & Culture, Operations, Procurement, Finance, Legal and Strategy carried out the assessment, which covered our business activities and – where relevant – value chain business activities. No site specific assessments or analysis were performed on own or customer sites and no standardised methodologies, assumptions or tools were used. It was validated by the four EGM members with functional sustainability responsibility. We used desktop exer-cises, workshops, validation processes and feedback loops. The outcome of the double materiality assessment was anchored with the Executive Group Management Board (the EGMB) and the Board of Directors (the Board) in December 2023 and sounded with the European Works Council as a key stakehold-er. The process was supported by recognised external consult-ants and drew on the results of our 2022 Stakeholder Materiali-ty Assessment covering internal and external stakeholders such as investors, customers, suppliers, employee representative organisations and the European Works Council. In 2024, we performed a refresh exercise that resulted in smaller adjustments to the IROs identified and scored in 2023 mainly that “Resource inflow” moved out of the scope of material topics and “Corruption and bribery” moved into the scope of material topics. IROs in regard to water, biodiversity and pollution were not assessed as material. The results of the refresh exercise have been anchored with the ESG Committee, the EGM and the Board in December 2024. Our methodology assesses negative impacts based on their se-verity and likelihood and positive impacts on their scale, scope and likelihood. Sustainability-related risks and opportunities are not assessed differently from other risks that we are subject to and we generally do not consider risks and opportunities related to sustainability impacts to be of higher or lower importance than other business risks and opportunities. We are still learning how to fluently embrace sustainability-related topics and we are in this learning process exercising increased focus and attention to understand and adapt. We are not employing a separate or dedicated lens to sustainability-related aspects. Sustainability-related IROs are business aspects that we strive to integrate into ordinary business processes rather than consider a stand-alone discipline. As an example, our enterprise risk management framework considers sustainability risks on an equal footing with any other enterprise risk. Physical climate risk Our business operations are not high-emission activities and are closely linked with the physical locations of our customers’ sites and their ability to continue operations. We rely mostly on our placemakers and only to a limited extent on consumables and physical assets due to our asset light business nature. The climate risk exposure associated with these assets are less prominent. We are exposed to physical climate-risk from the frequency and intensity of extreme weather events (acute), particularly heavy rain, floodings and storms/hurricanes as well as temperature increase (chronical). It may impair our ability to perform con-tinued services, but also provides business opportunities from additional work, for example clean-up after rain and floodings, that we can meet with our existing setup. Transition climate risk The need for taking decisive climate action is clear and we acknowledge our responsibility to address our carbon emission footprint and to advocate action. Our dependencies on external factors – in particular the need for development of infrastructure and technology solutions and the lack of clarity on how cost implications are balanced to ensure a “just transition” – leave us exposed to transition risk from stakeholder expectations (market). Potential introduction of carbon taxes (policy) is also a transition risk to us, which is however generally mitigated by our ability to pass on cost increases. In regard to our downstream value chain we have modelled the transition risk profile of our customer categories and from that concluded that our revenue base is not exposed to significant transition risk from this perspective. On the contrary the transi-tion need in our downstream value chain represents a business opportunity for us in regard to demand for our energy man-agement services and technical services. Resilience analysis In December 2021 we concluded our first climate-related resilience analysis covering climate-related impacts, risks and opportunities across our upstream, downstream and own operations. It was conducted through interviews and workshop sessions with key internal Subject Matter Experts combined with desktop research facilitated and supported by external consultant experts. Since then, we have made minor refinements particularly in 2023 when we modelled potential financial impact of climate risk and opportunities for the first time. Our resilience analysis covers a low-carbon (SSP1 2.6) and a high-carbon scenario (SSP5 8.5) in the short (1 year), medium (2-5 years) and long (5+ years) term. SSP1 2.6 assumes a “Taking the green road”scenario and reflects a global outcome where emission reduction commit-ments similar to our own are generally realised and resulting in a likely moderate temperature increase stabilising at around 1.8 degrees C by the end of the century. Socio-economic trends imply that more environmentally friendly practices are adopted by societies, with the focus shifting from economic growth to general well-being, and with increasing investments in educa-tion and health and decreasing inequality. SSP5 8.5 assumes a “Taking the highway”scenario and reflects a continued global fossil-fuels dependency development leading to almost double CO2emission levels by 2050 compared to today and resulting in a likely temperature increase of 4.4 degrees C in 2100. Economic and social development benefit from investments in enhancing social and human capital that drive global economic growth. For further details and impact descriptions please refer to the sixth assessment report (AR6) of the Intergovernmental Panel on Climate Change (IPCC). 65 GENERAL The outcome of the climate-related resilience analysis has in-formed our strategy resilience analysis described on p. 63and left a tangible imprint in our strategic priorities around environmental sustainability, including our Net Zero commitments. Our choice of scenarios intends to provide an understanding of climate change exposure in more outlier scenarios to serve as guardrails for our considerations, including considerations on climate-related financial impact. We will expand on our scenario-based analysis as part of our further transition plan development. Our ongoing process to identify and assess climate-related impacts, risks and opportunities (IROs) is not different from any other business area and our risk management activities on functional and enterprise level capture climate-relate aspects as well. The responsibility is formally anchored with our dedicated Decarbonisation team under the functional ownership of our Group COO and our annual wheel for enterprise risk assess-ment and double materiality assessment ensures regular in-tervals at which considerations, changes and developments on climate-related IROs are consolidated and reported to senior stakeholders including the EGM and the Board. Understanding climate IROs and the interaction with our strategy and business model in various scenarios has evolved significantly in recent years and underpinned that our iden-tified operational decarbonisation levers are not significantly impacted by different climate scenarios. There is still a long way to go until we navigate climate aspects fluently throughout the business. Each iteration of our processes around climate IROs reduces uncertainties and moves us closer to a shared language and contextual understanding. IRO-2 Disclosures covered by ISS’s sustainability statement We disclose information on material IROs that we consider to be material and relevant for stakeholders or that is prescribed by the relevant ESRS standards. Materiality is judged by reference to the size and nature of the information item. The deciding factor is whether the omission or misstatement could, individually or collectively, provide a materially incorrect basis for stakeholders acting reasonably to understand the sustainability-related context of the activities of the Group. We acknowledge that ESRS standards intend to drive transpar-ency across disclosers. Where data or information is available at negligible effort, our materiality assessment is influenced by standard setters transparency objectives. and we may therefore report slightly broader than strictly mandated by ESRS. Practices on disclosure levels are expected to develop and align over the coming years when the first iterations of ESRS reporting are di-gested. Our disclosure practices are likely to be impacted by these developments. Impact, risk & opportunities management (continued) 66 SOCIAL Social How we create value As a leading, global provider of workplace and facility services, our ‘product’ is our people. With over 325,000 employees worldwide, and assuming each has five family members, we impact around two million people daily. This brings both responsibility and opportunities. A large portion of our workforce consists of individuals from underrepresented groups, including those from disadvantaged backgrounds, displaced persons, and people with disabilities. By offering roles at ISS, we provide opportunities they might not find elsewhere, creating a positive ripple effect on families and communities. Our focus is on safe, inclusive workplaces where everyone is respected, fairly compensated, and has opportunities for social mobility. At the same time, we collaborate with our customers to support their social efforts. Our social ambitions provide purpose for everyone, and our social profile is a unique market differentiator. Striving for becoming the Leading Frontline Employer embodies our approach to continuing and enhancing our positive people impact and protecting against potential negative impact. In this section ESRS S1 – Own workforce67Reporting principles for Social77 ESRS S2 – Workers in the value chain79 ESRS S4 – Consumers and end-users81 For Basis of preparation related to the standards above, see p. 57. Highlighted areas 67 SOCIAL ESRS S1 Own workforce Impact, risk & opportunities management S1-1Our people policies We are a people business and our most critical resource is our placemakers. Our approach and practices towards our placemak-ers have the ability to positively or negatively impact their lives and we are committed to providing a safe and inclusive environment. Policies Our industry and business characteristics makes our people impact the most material of our sustainability impacts, which reflects directly in our people policy framework that moves from higher level commitments and principles in our Code of Con-duct to detailed policies and principles aimed more specifically at our material impact areas with our Global People Standards focused towards working conditions and equal treatment, our ISS Group HSEQ Policy focused towards occupational health & safety and our ISS Diversity, Inclusion & Belonging Policy focused on equal opportunity. Our fundamental promises to and requirements for our place-makers are anchored in our Code of Conduct. It is available in 22 languages and sets requirements to the personal conduct of all placemakers and provides fundamental principles that we will abide by in our people practices including commitments on upholding the United Nations Declaration of Human Rights, the United Nations Guiding Principles on Business and Human Rights, the ten Principles of the UN Global Compact and the Core Conventions of the International Labour Organisation. It directly addresses child labour, forced labour and trafficked labour. Our Code of Conduct is supported by several policies most notably our Global People Standards, our Diversity, Inclu-sion & Belonging Policy and our Group HSEQ Policy. All placemakers are required to take mandatory Code of Conduct training to ensure that the basic principles are known and understood. The Global People Standardsprovide a systematic and con-sistent approach to managing our people and others providing services under our direction and covers themes within human rights, labour practices, health and safety, legal compliance and supply chain management. Examples of specific topics covered are recruitment, promotion and termination, discrimination, diversity & inclusion, apprais-als, learning & development, employee relations, health, safety & working environment, remuneration, working hours, protec-tion of families with children and the right to privacy. In 2024, we did a major update to our Global People Standards particularly in regard to our living wage commitment and living wage benchmarks as well as our commitment to upholding and promoting human rights in all aspects of our operations. The Diversity, Inclusion & Belonging Policyprovides a common global framework and governance to support our commitment to a global diversity, inclusion & belonging agenda in order to promote and drive a culture that actively values diversity and inclusion at all levels of the organisation and that provides an environment of equal opportunity. The Group HSEQ Policyprovides our commitment and ap-proach towards systematically improving our health and safety, environment and quality practices across the organisation, e.g. through engaging with employees and suppliers (includ-ing sub-suppliers). It is supported by our HSEQ Management System Manual which is aligned to ISO 9001, 14001 and 45001 and delivered through global minimum management and operational standards. Engagement We engage with our placemakers on a daily basis as part of our service performance and management activities, including on material matters in regard to health & safety, working conditions and equal opportunities. As a principle in our Global People Standards employee appraisals are conducted at least annually for all placemakers and we actively support and promote indirect engagement through labour organisations or workplace rep-resentation whether established as a matter of law or not. Friction is a natural consequence of people interaction and we have thousands of episodes each year that are managed and resolved and remedied as a natural part of our management activities. Any episode or incidents that cannot be resolved through ordinary management channels can be raised through our Speak Up system, see G1-1, p. 96. Alignment to policy commitments Our policies in regard to our placemakers are aligned with our human rights policy commitments, including the UN Guiding Principles on Business and Human Rights. Our Code of Conduct and Global People Standards prohibit discrimination and harassment including discrimination based on cultural background and ethnicity, race, age, gender, gender identity, disability, sexual orientation, religious beliefs, language and education or other characteristics such as professional skills, working style, location and life experiences. Further, our Global People Standards prescribe equal opportunities as a principle to be respected in regard to recruitment, compensa-tion, access to training, promotion, termination, and retirement. We have in our Diversity, Inclusion & Belonging Policy com-mitted to promoting and driving a culture that actively values diversity and inclusion and to achieve and maintain a workforce that broadly reflects the local communities in which we operate. Group policies Our policies mentioned in S1-1 are available at our corporate website (www.issworld.com) except for our Global People Standards. For internal stakeholders the policies, manuals and standards are available in our internal management system, Policy Hub. Non-employees The composition of our workforce is clearly affected by our stra-tegic decision to self-deliver our services. We want to employ our workforce rather than rely on subcontractors. In case of employee absence we will strive to re-shuffle resources or tasks as this is often the most cost effective solution, which – as a low margin operator – we constantly need to keep front and center. We do however rely on temp workers through temp agencies or similar when necessary. When within our instruction au-thority temp workers enjoy the same protection and rights as our own employees in terms of working environment, whereas individual and collective workers’ rights are a matter for the temp agency or similar to secure, which we require as part of our contractual arrangements. 68 SOCIAL Impact, risk & opportunities management (continued) S1-2Engaging with our people and employee representatives about impacts Our day-to-day interaction with our placemakers and their direct managers is our most important engagement activity. It takes place as an integrated part of our management activities in connection with task and work assignment e.g. daily Team Board talks, coffee breaks, unplanned meetings etc. that allows for im-mediate feedback and swift calibration. It is supported by formal engagement activities such as annual appraisals and engage-ment activities prescribed by applicable statutory frameworks. Regular town hall meetings (virtual and physical) and engagement surveys offer a direct engagement link between senior managers at local, country, regional and global level and placemakers. MyVoice survey Our ongoing rollout of an employee app (MyISS) for engage-ment and two-way communication for all our placemakers has been joined in 2024 by the launch of the MyVoice Global Survey, the widest ever employee engagement survey run by ISS. The survey, which is now part of our annual engagement calendar, will be further augmented in 2025 with the introduc-tion of pulse check-ins and lifecycle surveys to gather feedback at key employee lifecycle moments (e.g. onboarding, change of role, prior to exit, etc.). 54% of invited placemakers responded in our employee engagement survey. A satisfactory participation rate for a first installment. In parallel we conducted our voluntary diversity survey – Diversity Census, see S1-4. Employee representatives As one of the largest private employers in the world we engage with employee representatives across the world. We respect the right to organise as firmly anchored in our Code of Conduct and believe that employee representation is a critical factor for ensur-ing a “just transition” and advancing human and workers’ rights. Engagement with employee representatives takes place at dif-ferent levels of the organisation from site level to board level. It is subject to norms and practices of our operating jurisdictions and comply with legal frameworks applicable to our country operations. At Group executive level, we engage with the European Works Council in at least quarterly meetings. The European Works Council consists of elected employee representatives across countries in the European Economic Area (EEA) where we have operations representing approximately 27% of our placemak-ers. At least once a year a physical meeting is hosted for the European Works Council at our headquarter in Copenhagen or Warsaw, which allows for formal and informal engagement and networking between senior executives and employee repre-sentatives. Our Group Chief People & Technology Officer is the formal owner of the relationship with the European Works Council as well as the owner of the relationship with UNI Global Union with whom we have enjoyed a positive relationship since 2003 under a Global Framework Agreement with the intention to jointly further and support worker and union rights. Further, in accordance with Danish law three employee elected representatives are members of the Board of Directors of ISS A/S – the ultimate governing body of the Group. Employee Resource Groups (ERGs) Our diversity, inclusion and belonging agenda is owned by a dedicated function, Group Diversity, Inclusion & Belonging, within our People & Culture function. We have established Em-ployee Resource Groups across the five diversity, inclusion and belonging themes most important and relevant for ISS: Genera-tion and Age; Pride; Gender Balance, Abilities and Cultures; and Race and Ethnicity. They are run by voluntary members of our workforce and are sponsored by at least one member of our Executive Group Management (EGM), which ensures that the views of these particular groups are understood and heard. Safety survey Impacts in regard to occupational health & safety are the operational responsibility of our Global Health & Safety function organised within our operations function headed by our Group Chief People & Technology Officer. Engagement activities in regard to health & safety aspects are managed by our Global Health & Safety function and often integrated into or coordinat-ed with other people engagement activities. For example, our 2024 people engagement survey conducted through MyVoice includes health & safety aspects. In 2024, we conducted our first annual Global Safety Culture survey which received over 70,000 responses from placemak-ers. The feedback from the survey has informed our new HSE strategy that will develop our safety culture over the next 3 years. This will be an ongoing annual survey to track progress and improvement in our safety culture. S1-3 Processes to remediate negativeimpacts and channels for our people to raise concerns As a general principle we aim to resolve issues and concerns at the lowest level of the organisation by ensuring continuous dia-logue between placemakers and management at relevant levels. This principle is firmly prescribed in our Global People Standards. We acknowledge that certain impacts or concerns may not be addressed or resolved appropriately at a lower organisational level and our Code of Conduct therefore formally codifies access to the Head of People & Culture, the Head of Legal and the CFO in each of our operating countries for raising concerns. Speak Up In addition, we have for years made available a Speak Up chan-nel for our placemakers as well as business partners and other stakeholders. Reports can be made anonymously or non-anon-ymously by phone or electronic form to an independent third-party or personally to our Head of Group Internal Audit. For concerns and issues raised via our Speak Up channels we have adopted firm principles in our Speak Up Policy (available in 26 languages) for the handling and provision of remedy including feedback to the reporter. This also includes a firm “no retaliation” principle. Issues and concerns raised via our Speak Up channels are monitored through a dedicated function within our Group Internal Audit and addressed in our Business Integrity Committee. Reporting is regularly provided to the Audit & Risk Committee. We track the volume and categories of concerns and issues raised via our Speak Up channels as a measure for the trust in and effectiveness hereof. Employee matters relating to employment terms and local workplace matters are primarily intended to be addressed and resolved through ordinary grievance mechanisms, but can be raised through our Speak Up channels if the reporter is uncom-fortable using our ordinary grievance mechanisms. Our Speak Up Policy refers to the EU external reporting chan-nels available in countries for any matters that reporters are not comfortable reporting through ISS’s available grievance mechanisms. We are not aware of any reports to any national authority designated to receive whistleblowing reports, includ-ing National Contact Points, in regard to our operations and practices having been made during 2024. Our ordinary grievance mechanisms are supported by our Escala-tion Policy, which ensures that serious events across the organisa-tion are ultimately escalated to the EGM level. Incidents covered by the scope of our Code of Conduct and Speak Up Policy are also covered by our Escalation Policy. When incidents or information within the scope of the Speak Up Policy is escalated outside our Speak Up reporting channel, it will manually be recorded within our Speak Up system. For further details on our Speak Up Policy and channel and our Escalation Policy please refer to G1-1, p. 96. 69 SOCIAL Impact, risk & opportunities management (continued) S1-4Actions and approaches to managing IRO and effectiveness of those actions It is a fundamental characteristic of the facility services industry that our service performance to a very large degree does not rely on high pre-existing skill levels of our placemakers. A positive service attitude is more important than pre-existing skills. We are also dependent on highly skilled resources for example within technical and food services, but the majority of our positions are attractive to relatively unskilled people. On average, unskilled persons belong to more vulnerable groups of people often at the edge of labour markets. This means that our business activities have the potential to positively impact and influence the lives of persons that can have difficulty finding a foothold in labour markets and offer opportunities for progression and prosperity for the benefit of themselves, their families and societies in general. But it also means that our most important resource – our people – are at greater risk of being exploited with the therefrom follow-ing negative consequences. Low barriers of entry in terms of skill levels also means that being replaced is relatively easier. As part of our ordinary management processes at executive, functional and country level we will consider and address the approach and actions directed towards our material topics. Health & safety While from a holistic perspective our facility services are not in-herently high-risk activities, we operate in public and customer environments that can be hazardous to the health and safety of our placemakers. Tragically, serious harm and even fatalities unfortunately do happen. While this is always tragic no matter the context, it resonates stronger with us because our workforce in general may be less robust or daring to speak up through no fault of theirs. Health & safety at ISS is often referred to as “priority zero”. It comes before anything else and we have for many years been adamant on strengthening our safety culture. We will not ac-cept that performing job duties may harm our placemakers. Our approach to health & safety is anchored in our Group HSEQ Policy that defines our vision and key actions for en-hancing our safety culture. Conducting our first Global Health Culture survey in 2024 followed by focus groups across a broad spectrum of placemakers around the world allowed us to fully understand our safety culture and to define a baseline and a safety culture improvement plan that will commence in 2025, including launch of a behavioral safety program unique to ISS. At the core of our actions is dedicated specialist Health & Safety resources at Group and local level. They are the catalysts responsible for bringing our safety agenda to life and plan and execute actions within: 1) Driving awareness 2) Continuous improvement 3) Monitoring of performance 4) Engagement with stakeholders Our key actions for driving awareness is mandatory and vol-untary safety training programs for all placemakers primarily through our e-learning platform MyLearning and global aware-ness campaigns such as our Global Safety Week Campaign. Our key actions for driving continuous improvement rests on strong due diligence processes detailed in the Group HSEQ Management Manual and supporting standards. Simple in its essence, our standardised risk registers down to site level compiles knowledge of hazards, risks, and controls that informs our risk assessments and allows us to detail specific proce-dures for more hazardous work environments. Standardised risk registers are continuously updated by feedback loops and lessons learned from root cause analysis of incidents. In 2024, we refreshed and simplified 20 management standards and 51 operational standards which together with any local legal re-quirements define the minimum risk control requirements that are applied in all countries. Our Group Health & Safety team runs a global assurance program across country management health & safety systems, procedures and sites and custom-ers’ sites and requirements to ensure compliance with Global standard and our ISO14001, 9001 and 45001 accreditations. Our key actions for monitoring performance is our HSEQ management system, which is globally certified under the lat-est ISO standards 45001 for occupational health & safety and 14001 for environmental management systems. The systems were recertified for a second four-year period in May 2022 by the global certification body, Det Norske Veritas (DNV). In 2024, we passed the latest surveillance audit with no major non-conformities. Health & safety incidents are tracked in our group-wide health & safety system “VelocityEHS” in accord-ance with the requirements of our Group HSE Data Reporting Manual. Our key actions for engagement with stakeholders over and above the awareness activities described above includes Team Board sessions, mandatory meeting safety moments, reg-ular Safety Walks at all key account sites, safety committees established under various legal frameworks and dialogue with employee representative organisations such as the European Works Council. LTIF (Lost Time Injury Frequency)is one of our major non-finan-cial KPIs and has been so for many years. We track LTIF as one of the measures of effectiveness of our health & safety actions and LTIF performance has been a component within our variable remuneration for several years. In addition, the Health & Safety function tracks a number of operational or supporting KPIs includ-ing those specified under S1-14. Key controls relating to our Health & Safety operations are included within the scope of our internal baseline audit pro-gramme conducted by Group Internal Audit. Working conditions The facility services industry is fragmented and competitive with low barriers of entry. There is a constant push from customers for efficiency and price optimisation and from investors for attractive return on their investments. We are a business and we need to yield financial benefits that allow us to meet these expectations and requirements. This affects our possibilities for driving positive impact for our placemakers. At the same time we are a business strongly anchored in our values. They define parameters and red lines that no business rational can trump. This limits and mitigates our potential nega-tive impacts on our placemakers. Within this frame we approach working conditions by provid-ing a strong foundation of minimum requirements prescribed within our Code of Conduct and our Global People Standards, combined with initiatives and actions aimed at providing increased benefit. Our People & Culture function at Group level and in countries is overall responsible for our people agenda and for our ap-proach to working conditions: 1) Setting and driving minimum requirements 2) Defining and executing actions and initiatives 3) Engaging with stakeholders Our minimum requirements or basic promises to our place-makers are only effective and relevant if they are known by our placemakers. Our mandatory training programme requires all placemakers to be trained in our Code of Conduct, which ensures awareness of our minimum requirements in the Code of Conduct and our Global People Standards. Our internal baseline audit programme conducted by Group Internal Audit provides assurance in regard to compliance with these training requirements as well as on other aspects of working conditions. 70 SOCIAL Impact, risk & opportunities management (continued) The minimum requirements in our Global People Standards address working condition areas as follows: 1) Secure employment: To the extent possible provide reason-able advance notice and reasons for termination 2) Working time: Respect national working hour regulation or relevant international standards 3) Adequate wages: Pay compensation that meets or exceeds the higher of legal minimums and collective agreements 4) Social dialogue: Continuous dialogue with our placemakers, so that conflicts are resolved at the lowest level possible, as soon as possible 5) Freedom of association: Support alternative forms of inde-pendent and free employee representation in case of restric-tion or prohibition of freedom of association under law 6) Collective bargaining: Engage in collective bargaining with legally recognised employee representative organisations 7) Work-life balance: Rights to protect families before and after child birth 8) Health & safety: Ensure that placemakers have the skills, knowledge, and resources necessary to maintain a safe and healthy work environment, one in which they can raise safety concerns without repercussions Regularly we encounter difficult balancing exercises when principles meet reality. Working hours is a good example of the dilemma that we sometimes face. For good reasons and in order to protect workers against exploitation many jurisdictions prescribe a maximum number of hours that can be worked over a period of time. However, the minimum wages paid for working up to the legal maximum in some of these jurisdictions does not provide the necessary financial means to cover more than the basic needs for a family. We therefore from time to time receive requests from placemakers to work additional hours. This dilemma illustrates the need for moving pay levels in our industry towards a living wagelevel, which is exactly one of our current key social initiatives. We have pledged to work together with our stakeholders to move pay levels in our industry to liv-ing wage levels and detailed our ambition as part of our Global People Standards. Our initial activities have centered around establishing credible living wage benchmarks for each local market in order to focus our attention on the markets where current pay levels are below living wage levels thereby driving maximum positive impact. We now have a good understanding of the target markets and have run a pilot case in China and initiated a partner project with Uni Global Union in Indonesia to increase salaries and create job opportunities for underrepre-sented groups in the facility services industry. Our key challenge around living wages is that – as a low margin business – we cannot absorb the immediate cost impact of moving our placemakers fully to living wage levels. We there-fore rely on our partners and customers to co-fund the activi-ties, which in a world of endless priorities and limited resources and bandwidth is not straight forward. Our Living Wage pledge remains a key action for the coming years to drive positive impact for our workforce. We drive numerous actions in our local operations aimed at improving working conditions in ways that are most relevant to each market. 1) Supporting mental and emotional wellbeing via ISS4U in India, a workplace wellness programme offering confiden-tial support to address personal, family, and work-related challenges that impact health, well-being, and performance. This initiative, fully complementary for all frontline employees in the country. 2) In 2024, we partnered with Uni Global Union to deliver a social sustainability project, executed over 24 months in Indonesia. The project aims to build a sustainable and con-structive platform for social dialogue with the wider cleaning industry – focusing on educating and influencing custom-ers to promote a wider understanding of the meaning of minimum versus living wage. The project also aims to create more job opportunities for women and individuals with disa-bilities in the Greater Jakarta area. Strong labour unions are critical in our industry and we value the relationships we have built over decades with local, regional and global unions and labour organisations. We actively en-courage and support unionisation and while we believe that we generally are open and receptive to input, critique and opinions from our placemakers, we acknowledge that there can be issues or personal circumstances that can be difficult to raise directly or that are better heard when spoken in “one voice”. Engagement with unions in local markets follows local customs and practices. Our engagement with the European Works Council and the UNI Global Union is described above. Directly connecting and engaging with our placemakers out-side our normal management routines is difficult to orchestrate across the geographical span of our operations. Our roll out of the MyVoice programmeaddresses these challenges and as technological developments has made smart phones available and accessible across the globe it allows us to tap into its con-nectivity potential for engaging directly with all our placemak-ers. We have during 2024 reached full coverage of our MyVoice programme to the entirety of our placemakers with the two most important engagement points being: 1) Employee engagement survey 2) Our diversity survey Diversity Census Our continued dialogue with our placemakers and labour un-ions and employee organisations in combination with availabil-ity of channels for raising concerns locally as well as the Speak Up system is the most important markers for the effectiveness of our overall approach in regard to working conditions. We make thousands of mistakes each year, including mistakes relating to working conditions. We rectify our mistakes and continuously improve our processes and structures, but we will continue to make mistakes despite our strongest efforts to avoid them. Equal treatment and opportunities for all As with working conditions explained above our approach to equal treatment and opportunities for all is anchored around a set of red lines following from our value-based principles that define minimum behaviours and requirements that mitigate negative impacts combined with behaviours and actions aimed at driving positive impact. Our People & Culture function at Group level and in countries is overall responsible for our people agenda with a dedicated sub-function, Group Diversity, Inclusion & Belonging, responsi-ble for our diversity, inclusion and belonging: 1) Setting and driving minimum requirements 2) Defining and executing actions and initiatives 3) Engaging with stakeholders Ensuring equal treatment and opportunities for all is part of our people agenda and rests on the same foundation for min-imum requirements as our other people related topics, includ-ing our mandatory training program for our Code of Conduct. Our Global People Standards include minimum requirements that address equal treatment and opportunity areas as follows: 1) Gender equality and equal pay: Remuneration policies based on a principle of equal pay for equal work and equal working conditions regardless of gender 2) Training and skills development: Offer training opportunities for development of skills that enable growth and pursuance of career opportunities 3) Persons with disabilities: Include abilities as part of our diversity, inclusion and belonging approach and provide physically accessible workplaces 4) Protection against violence and harassment: Provide work environments free from harassment and establish docu-mented process for cases of alleged harassment or abuse 71 SOCIAL Impact, risk & opportunities management (continued) 5) Diversity: Embrace and encourage diversity and inclusion in their broadest terms, including cultural background and ethnicity, race, age, gender, gender identity, ability, sexual orientation, religious beliefs, language, and education. We actively promote and drive diversity, inclusion and belong-ing across the organisation with dedicated resources and activities. At its core, our diversity, inclusion and belonging agenda targets discriminatory practices and behaviour and is a conscious effort to avoid negative impact we might other-wise have on our placemakers. It also supports our continued access to talent and people resources by establishing us as a responsible employer that believe and action our Employer Value Proposition of providing a Place To Be You: 1) Be who you are 2) Become what you want 3) Be part of something bigger Knowing and understanding the differences and diversities of our workforce is paramount. With a workforce as large as ours we have employee groups representing numerous diversity as-pects. We recognise that it can be sensitive or even dangerous to address and speak up on personal matters of diversity just as there are strong privacy interests to be considered. As an employer it has to be carefully considered if even asking on a voluntary and anonymous basis is appropriate and justified. We believe that asking in the right way in itself sends an inclusive signal and considering the strong privacy safeguards we have established, we have decided to ask in order for us to listen. Launched for the first time in 2024 Diversity Census was run in parallel with our Employee Engagement Survey. On a completely voluntary and anonymous basis our employees were offered the possibility to provide certain diversity and inclusion related demographic information about themselves on an anonymous basis. We received more than 10,000 responses across 25 countries, which will provide insights into diversity and inclusion areas where additional focus and support is needed. We are still analysing the data and will together with country organisa- tions review the results and feedback to shape global and local diversity, inclusion and belonging initiatives and to build broader participation in the coming years. We will use the survey responses to shape global and local diversity, inclusion and belonging initiatives. Our learning & development activities provide a robust foun-dation for avoiding negative impact by combining mandatory training activities on areas such as health & safety, Code of Conduct, compliance areas and service line practices with voluntary skills development programmes. With our Code of Conduct training we specifically address discrimination and harassment themes. In addition, to mandatory training requirements our learning & development agenda focuses on three pillars: Culture & Leadership Capabilities:Ensuring our people understand how they can be successful in the organisation and develop their careers with us. We put special emphasis on the development of leadership and management skills of our people leaders and train them in building a supportive working environment. Technical Capabilities:Specialised training tracks for spe-cific lines of service and specialisations to equip our people with knowledge and skills enabling them to perform their jobs in line with quality and health & safety standards. Personal Effectiveness: Providing our people with training and tools that help them fulfill their personal aspirations. These programmes include personal development (commu-nication skills, personal well-being, fundamental business skills) and digital upskilling. Our dedicated Placemakers Path programme puts together all development, recognition and training activities targeted at our service placemakers into a comprehensive employee experi-ence journey. Actions that drive positive impact Two years ago we pledged to provide 100,000 recognised qualifi-cations to placemakers and their family members by 2025. Impor-tantly we define recognised qualificationsas skills development that is broadly usable within and outside ISS; hence a strong social mobility enabler. As of 2024 we had provided 73,000 placemak-ers and their families with a Recognised Qualification under our pledge – well on the way to reach 100,000 in 2025. Together with partners, we aim to add an additional 250,000 by 2030 taking the total to 350,000. Our catalogue of Recognised Qualifications span from general life skills to advanced leadership skills (MBAs) and are conducted within the ISS learning environment or through external partners. Taking action on diversity and inclusionbeyond policy state-ments requires awareness and knowledge of the particular circumstances and characteristics of our diverse workforce. We have identified the five key diversity dimensions for our work-force as Generation & Age, Pride, Gender Balance, Abilities & Cultures and Race & Ethnicity. In 2022 we established global Employee Resource Groups (ERGs) for each dimension as fo-rums for sharing and addressing topics and issues of particular relevance to each of them. This serves as strong platforms for creating awareness and sharing knowledge across. Each ERG is sponsored by at least one Executive Group Management (EGM) member and operated by volunteer employees who host regular global sessions attended by all types of employees from placemakers to executives. In turn, country organisations mirror or adapt local employee resource groups to cascade global messaging and address local context. As examples, in 2024 our headquarter locations in Warsaw and Copenhagen established umbrella ERGs under the headline of “Allyship” covering all five diversity dimensions. Examples of the activities and initiatives undertaken within ourERGs in 2024 are provided to the right. ERG activities in 2024 Generations & Agefocused on increasing gen-erational inclusion and challenging age-related biases and stereotypes. A comprehensive guide “Inclusive Employment of Older Persons”, explain-ing the merits of senior employees in the context of recruitment challenges arising due to aging populations are developed. The guide covers e.g. inclusive recruitment, promotion, learning & development and onboarding. The Pridecontinued to support pride events during pride month in June Also delivered pride initiatives, such as LGBT+ Diamond Awards Gala and Crowns of Equality in Poland, pride event with a Danish customer and celebration of the Internation-al Day Against Homophobia, Biphobia, Interphobia and Transphobia. Further, workplace policies have been reviewed globally for pride relevant contents. Gender Balancecontinued to raise awareness through activities including an International Women’s Day webinar in March and development of a complete Toolkit supporting the Interna-tional Men’s Day webinar in November. The ERG Co-Chairs and Council Members set up a “Reverse Coaching” series for EGM members leading to individual commitments to support female talent promotion and development in ISS. Abilitiescontributed greatly to the annual Virtual Social Sustainability Conference, which was large-ly dedicated to neurodivergence and inclusive workplaces, delivered on 3rd December 2024 – the Day of Persons with Disabilities. Cultures, Race & Ethnicities delivered monthly sharing sessions on topics celebrating cultural diversities, working in multi-national and -cul-tural teams, religion and cultural practices, migration stories, etc. Also delivered a webinar on the occasion of the World Day for Cultural Diversity in May. 72 SOCIAL Impact, risk & opportunities management (continued) Historically and up to present day domestic responsibilities have mainly been associated with females as evidenced by the need for one of the SDG targets (Target 5.4) on gender equality to center around domestic activities. Household activities such as cleaning, cooking, laundry and child-care is more often undertaken by females, while providing financially for the household is either shared responsibilities or skewed towards the male side. The nature of several of the services that we provide resemble household activities and we therefore play an important role in providing work opportunities to and empow-ering females. From our cleaning services began in Copenha-gen, Denmark in the 1930s we have provided millions of female placemakers with work opportunities across our service port-folio often leveraging household skills. That has and continues to positively impact gender equality and female empowerment across our countries of operation. Our gender distribution across our global workforceis largely 50/50 with an overweight of females in our workforce for most countries. In certain of our APAC countries we however have very people-intensive security operations that for cultural reasons re-main very male dominated and therefore tip our global workforce from otherwise being skewed towards females to being balanced. In management and leadership positions we acknowledge and recognise that female role models are important and that diversity in competencies and perspectives are value-adding. For that reason, we have set a target of reaching 40% gender balance in our corporate management by 2026 (please refer to S1-5). It is supported by positive actions defined in our Diver-sity, Inclusion and Belonging Policy such as the identifications of female short list candidates for vacant corporate leadership positions. We truly believe that a diverse workforce is a value-driver and that our continued efforts to drive a strong diversity, inclusion and belonging agenda is not only impactful on the lives of the people in our workforce, but also drives positive business results. Other work-related rights Forced labour and child labour is known to occur also within our broader industry and geographic footprint. Child labour and forced labour is generally associated with activities hidden away from the public eye. Our business model is the opposite. We drive value by having engaged service personnel that interact with people and places to create great service moments. We acknowledge the broader risk around child labour and forced labour. We are committed to upholding and promoting human rights and have taken strong policy positions in our Code of Conduct and Global People Standards against child labour and forced labour as well as precautionary measures against it such as pre-employment checks. Our business model, however, is focused on environments, markets and customers with different characteristics and we therefore do not consider child labour and forced labour as material risks to our workforce. In terms of other work-related rights we process, store and man-age personal information on our workforce – some of it of a very sensitive nature. It is imperative that our personal data manage-ment practices meet the legal requirements of the jurisdictions in which we operate and honor the trust of our placemakers. We manage personal information across three defense lines. Our global IT security team focuses on preventing unauthor-ised access from external parties. Our Legal data privacy team establishes internal protocols for how to process personal in-formation and our P&C organisation establishes and operates our people processes. In regard to our general information security approach our work is supported by policies and standards such as our Global Information Security Policy and Global Information Security Standard. Our people processes are governed by our Global Standard on P&C Processes, which is specifically aimed at the information security aspects of our people processes. Our legal data protection framework is set within our Data Protection Policy and our Data Ethics Policy. We have not set specific targets for performance on informa-tion security in regard to our workforce. 73 SOCIAL Metrics & targets S1-5Targets related to managing IRO We have set three global targetsrelating to managing our material people impacts as well as continuous targets relating to health & safety. Our material IROs reflect their inherent position and our structured work over many years has provided mitigation that leaves target setting for many aspects of our IROs obsolete or less relevant. Living wage Our Living Wage pledge follows directly from the policy ob-jective in our Code of Conduct to support introducing living wages. It captures all positions paid below living wage levels and therefore imply an aspirational target of 100% of job positions across the organisation being paid at living wage level. It is not time-bound due to the strong dependencies on other stakeholders, particularly our customers, suppliers and policy makers. As an intermediary target that was met in 2023 we partnered with an independent consultant to develop living wage benchmarks across our countries of operation. In 2024, we have utilised the benchmarks to conduct a living wage assessment in 19 of our countries. Over time we will work towards setting annual targets for the number of job positions being moved into living wage level. Recognised qualifications Upskilling our workforce and their families is an opportunity for us to drive positive people impact over and above what automatically follows from our ordinary business operations. We have pledged to provide 100,000 placemakers and their family members with a recognised qualification by 2025 from a 2022 starting point. For 2024 our target is to provide 26,000 individuals with a recognised qualification taking it to a target total of 55,000. In 2024 we reached 73,000 recognised qualifications thereby outperforming our 2024 target that we now aim to increase by an additional 250,000 by 2030. Recognised qualifications are programs or training activities that meet certain pre-defined criteria and that strengthen professional, industry or personal development. Progress is recorded and tracked within our Learning & Development system “MyLearning”. Gender balance Gender diversity is a clear policy objective in our Diversity, Inclu-sion & Belonging Policy and establishes a global 2025 gender diversity target of 40% across our corporate leadership teams at Group and country level. Our 2024 progress does not support a realistic trajectory towards reaching our target. It has therefore been decided to move our target year from 2025 to 2026 and to introduce underlying internal pipeline metrics. Fatalities and LTIF Fatalities and serious injuries related to our work activities are never acceptable and we are therefore careful around setting specific targets in this regard, since it could be considered as acceptance of some level of unsafe practices. On the other hand, we recognise that lack of targets may not instil the right behavioural motivation for driving improvements. With that perspective we generally consider LTIF levels above 2.5 for the Group as “high” while striving for zero fatalities undoubtedly remains our goal. Global targets are approved at Executive Group Management level. Additional targets addressing people impacts are set at functional or country level considering the specific aspects and context of the target. S1-6Characteristics of our employees Our strategic decision to primarily self-deliver our services im-plies that we employ a large workforce that includes hundreds of nationalities and extends across all diversity aspects. Number of employees by gender End of period 2024 (Headcount) 2024 % Male 168,336 52% Female 158,147 48% Other - 0% Not reported - 0% Total 326,483 100% The gender composition across the Group is close to 50/50, but varies across countries affected by our mix of service lines and local tradition. Number of employees by contract typeEnd of period 2024 (Number) Northern Europe % Central & Southern Europe % Asia & Pacific % Ameri-cas % Other % Total Permanent employees 55,726 19% 98,381 34% 105,137 36% 28,376 10% 1,566 1% 289,186 Temporary employees 5,356 19% 7,816 28% 14,528 52% - 0% 73 1% 27,773 Non-guaranteed hours employees 3,960 42% 21 0% 5,543 58% - 0% - 0% 9,524 Part time employees 26,903 39% 28,111 41% 11,510 17% 1,960 3% 33 0% 68,517 Full time employees 38,139 15% 78,107 30% 113,698 44% 26,416 10% 1,606 1% 257,966 On a regional basis the use of part-time employees is a mostly European approach. Number of employees by contract typeEnd of period 2024 (Headcount) Male % Female % Total Number of employees 168,336 52% 158,147 48% 326,483 Permanent employees 151,334 52% 137,852 48% 289,186 Temporary employees 12,880 46% 14,893 54% 27,773 Non-guaranteed hours employees 4,122 43% 5,402 57% 9,524 Part time employees 16,954 25% 51,563 75% 68,517 Full time employees 151,382 59% 106,584 41% 257,966 We primarily employ people on permanent and full-time basis in line with our self-delivery model. Non-guaranteed hours employees are used only to a limited extent and not in all coun-tries. We have a general skew towards more females working part-time positions. 74 SOCIAL Metrics & targets (continued) Number of employees by country 2024 (Headcount) End of period % Average % Finland 6,755 2% 6,630 2% Netherlands 2,278 1% 2,259 1% Norway 7,926 2% 8,248 2% Sweden 6,339 2% 6,354 2% Belgium 6,907 2% 6,978 2% Luxembourg 511 0% 515 0% Denmark 5,395 2% 5,375 2% Poland 1,850 1% 1,845 1% Lithuania 315 0% 293 0% Ireland 1,819 0% 1,913 0% United Kingdom 24,947 8% 25,471 8% Northern Europe 65,042 20% 65,881 20% Austria 6,714 2% 6,774 2% Switzerland 14,294 4% 13,005 4% Spain 30,725 10% 29,649 9% Italy 1,210 0% 1,176 0% Türkiye 44,035 14% 43,673 13% Germany 9,240 3% 9,468 3% Central & Southern Europe 106,218 33% 103,744 31% China 7,794 2% 8,259 2% Singapore 8,348 3% 8,465 3% Indonesia 42,853 13% 43,610 13% India 40,319 12% 40,536 12% Hong Kong 12,690 4% 13,000 4% Australia 12,047 4% 11,932 4% New Zealand 1,157 0% 1,135 0% Asia & Pacific 125,208 38% 126,938 38% US & CA 5,564 2% 6,101 2% Mexico 10,462 3% 10,806 3% Chile 12,350 4% 12,723 4% Americas 28,376 9% 29,630 9% Other 1,639 0% 5,346 2% Total ISS Group 326,483 100% 331,539 100% The average number includes ISS France until we completed its divestment in April 2024, which is the main driver of the differ-ence to the end of period number. Placemaker/Support staffEnd of period 2024 (Headcount) Male % Female % Total Placemakers 156,212 51% 148,701 49% 304,913 Support staff 12,124 56% 9,446 44% 21,570 Our ability to leverage support staff is a key efficiency parame-ter. For support staff we have a slightly better gender balance than for the narrower Corporate leadership team, see S1-9. Employee turnoverAverage (Headcount) 2024 % of total workforce Leavers, resignations, retirements and deaths 111,633 34% Leavers and resignations 106,523 32% For internal management purposes we track employee turno-ver based on leavers and resignations as these are generally driven by factors that we can operationally influence. This is also a KPI we have reported externally for many years. S1-7 Characteristics of non-employees in our own workforce Our workforce predominantly consists of own employees as a result of our strategic decision to self-deliver our services. We gen-erally engage with temp agency workers for short-term support such as holiday cover and other absence cover, event support or transition cover. Self-employed consultants are generally engaged only as support staff (“white collar”) as part of our corporate and management activities, but not to any significant extent. Number of non-employeesEnd of period (Full-time equivalent) 2024 % Northern Europe 5,157 48% Central & Southern Europe 3,222 30% Asia & Pacific 2,014 19% Americas 285 3% Other 15 0% Total 10,693 100% Non-employees are not a significant share of our workforce when measured in full-time equivalents, but still play an impor-tant role in regard to ensuring our continued operations. S1-8 Collective bargaining coverage and social dialogue Collective bargaining and social dialogue is influenced by local practices and legislation. We adhere to legal requirements of the markets in which we operate and actively promote the right to collective bargaining. Our European Works Council has for many years been an important partner for social dialogue and engagement. Collective bargaining and social dialogue1) Collective bargaining coverage Social dialogue (Coverage rate) EEA countries Regions Non-EEA countries only Workplace representation EEA only 0-19% - Central & Southern Europe; Other n/a 20-39% - n/a 40-59% - Asia & Pacific n/a 60-79% - Northern Europe;Americas n/a 80-100% - n/a 1)For countries/regions with >50 empl. representing >10% total empl. 56% of our employees across the Group are covered by collec-tive bargaining agreements with Northern Europe having the highest coverage ratio across the regions. 75 SOCIAL Metrics & targets (continued) S1-9 Diversity metrics Our target of 60/40 gender diversity across our corporate leadership (top management) is not yet reached though we are moving closer. As described in S1-5 we have moved the target year to 2026. In regard to age distribution there are local variances across our operating countries with India and Indonesia each having less than 10% of employees above 50 years of age. Gender diversity at top management (Number, %) 2024 % Male 748 63% Female 436 37% Total 1,184 100% Age distribution (%) 2024 % < 30 years 72,219 22% 30-50 years 157,626 48% > 50 years 96,638 30% Total 326,483 100% S1-10 Adequate wages All employees are paid at least an adequate wage in accord-ance with applicable minimum wage or collective bargaining requirements. S1-12 Persons with disabilities Legal restrictions and privacy concerns are considered to signif-icantly impact the accuracy and completeness of reporting. Persons with disabilities Disabilities End of period 2024 % of total workforce Total 7,092 2% S1-13 Training and skills development metrics Average performance and development reviews (Appraisals per headcount) Planned Performed Male 0.49 0.37 Female 0.54 0.40 Total 0.51 0.39 Training hours (Number) Total hours Avg. per employee Male 2,170,267 12.6 Female 1,419,014 8.9 Total 3,589,281 10.8 The difference in training hours between males and females is driven by India that provide above group average training hours to employees with a significant overweight of male employees in India. Approx. 18% of training hours are not re-corded by gender for GDPR reasons. These training hours have been pro-rata allocated by country and gender based on the 82% training hours recorded by country and gender. S1-14 Health and safety metrics Our health and safety management system covers 100% of our workforce. In 2024, sadly we had one fatality in Spain. Health & safety (Number) Employees Non-employees Fatalities 1 - Total reportable cases (TRC) 3,916 29 Rate of recordable cases 6 1 Occupational illness cases 97 - Lost work days 41,216 - Lost-Time-Injury Frequency (LTIF) (incident frequency) Employees Employees 3.1 Non-employees 0.5 Contractor employees 0.9 Total 2.9 We have for many years measured and reported LTIF as a metric for our health & safety performance. Internally we measure across the categories of employees, non-employees and contrac-tor employees working under our instruction authority, which aligns to our health & safety management system coverage. 76 SOCIAL Metrics & targets (continued) S1-16 Remuneration metrics (pay gap and remuneration ratio) Salary levels for our servicing placemakers across our business are generally aligned to collective bargaining agreements or statutory minimum wage levels that do not provide gender spe-cific rates. Our Global People Standards prescribe a remunera-tion principle of “equal pay for equal work”. Our CEO pay-ratio (remuneration ratio) is calculated on the basis of average salary rather than median salary, since we are not currently able to integrate salary details for all employees across our operations and people and salary systems. We have sense checked our approach by calculating the CEO pay-ratio for our operations in ISS Denmark using both an average and a median method showing a reasonable correlation. A relatively high CEO pay-ratio is a natural consequence of the composition of our workforce across geographies, the difference in purchas-ing power and a Danish-based headquarter. Remuneration metrics (%, number) 2024 Gender pay gap, % (4)% Remuneration ratio, number 112 S1-17 Incidents, complaints and severehuman rights impacts Incidents of discrimination, including harassment, cover cases recorded in local people management systems as well as incidents filed through our Speak Up channel. Anonymity is guaranteed when complaints are filed through our Speak Up channel and we can therefore not always verify whether com-plaints are also filed and recorded in local people management systems. The right to anonymity is prioritised over the risk of double-counting. We have not recorded any severe human rights incidents during 2024. Incidents and complaints reported (Number) 2024 Discrimination, incl. harassment 82 Complaints received through Speak-Up Work-related complaints, excl. discrimination & harassment 614 Complaints received through Group Speak-Up Code of conduct 29 Customer/competitor interaction 5 Data privacy 5 Discrimination including harassment 53 Fraud, bribery, corruption and misappropriation of funds 35 Health, Safety & environment 16 Labour law compliance 52 People & Culture concerns 281 Other 76 Total 552 Severe human rights incidents 0 Fines, penalties and compensation for damages (DKKm) For work-related incidents 9 For severe human rights violations 0 77 SOCIAL Reporting principles for Social S1-6: Workforce characteristics People data is generally recorded and reported from people and/or payroll systems in countries. Number of employeesare the total number of headcount full-time and part-time at the end of the reporting period or averaged over the 12-month reporting period. Full-time employees are employees who work a minimum of 30 hours a week for ISS. Number of employees are specified into placemakers and support staff. Placemakers are employees that provide services to customers whereas support staff is management and support functions. Permanent employees have open-ended employment contracts while temporary employees have fixed term contracts. Non-guaranteed hours employees are employees that are not entitled to a minimum number of work hours. Breakdown by genderis generally provided in male and female. We have prepared our consolidation system to allow our reporting units (countries) to voluntarily report employ-ees that identify as other than male or female. If necessary for reporting purposes “other” employees are allocated as male or female on a pro-rated country basis. In other reporting categories, e.g. training hours, gender is not a pre-set recording dimension for data privacy reasons and gender breakdowns will therefore often be based on gender distribution assumptions. Theturnover ratemeasures leavers (involuntary) and resignations (voluntary) during the reporting period relative to the average number of employees. As of 2024 it includes also retirements and deaths. S1-7: Characteristics of non-employees Non-employees are self-employed persons (e.g. consultants) and temporary workers engaged via staffing or temp agen-cies and normalised to a full-time-equivalent value using a standard work year of 2,000 hours to provide a comparison base to our own employees. Where headcount and actual hours are not recorded, an estimation is provided based on a spend conversion ratio. S1-8: Collective bargaining and social dia-logue Collective bargaining coverage measures the number of em-ployees covered by collective bargaining agreements relative to the total number of employees at the end of the year. Social dialogue reporting requirements are determined on the basis of Q3 people reporting. At Q3 and Q4 2024, no EEA country represented 10% or more of our employees. S1-9: Diversity indicators Corporate leadership covers the Board of Directors (the Board), the Executive Group Management (the EGM), direct reports to the Board and the EGM, Country Leadership Teams and direct reports to Country Leadership Team members at the end of the year. This definition has been used for internal and external purposes for several years. S1-10: Adequate wages Adequate wage ratio measures the number of employees earning an adequate wage level relative to the total number of employees. Adequate wage levels are determined coun-try-by-country in accordance with the principles of ESRS S1-10. S1-12: Disabilities In accordance with ESRS S1-12 persons with disabilities are defined as persons who have long-term physical, mental, intellectual or sensory impairments which in interaction with various barriers may hinder their full and effective participa-tion in society on an equal basis with others. The metric is calculated relative to the end of year number of employees. Privacy regulation including GDPR may hinder or impair the possibility to collect and store information necessary for reporting purposes. Further, information is to a large extent dependent on self-declaration by employees, which is a personal privacy matter. At ISS we intend to provide safe and inclusive environments for supporting transparency on dis-abilities, but fully accept and support that this is a personal right and decision of each employee. As a consequence, our reporting on disabilities is associated with significant uncertainty. S1-13: Performance reviews Planned and performed performance reviews cover career and performance reviews that form part of a formalised ap-praisal framework mandated by for example Group or local policies. Metric is calculated relative to the average number of employees. For 2024 excluding France. S1-13: Training hours Training hours includes all training activities for ISS employ-ees as a result of their employment with ISS that are fully or partly performed during work hours or fully or partly paid by ISS. Training can be performed in classrooms (at ISS premises or externally), on-site, online, at home etc. It also includes time spent on preparations by participants as well as time spent on exams or tests. Training hours are record-ed in learning & development systems or calculated based on people and participation statistics. Average number of training hours is calculated relative to our average number of employees. S1-14: Health & safety Fatality means a work-related incident or work-related ill health leading to the death of an employee, temporary worker, agency worker and contract personnel and personnel of contractors delivering our services and working under our instruction authority. Recordable work-related accidents cover fatalities, lost-time injuries, permanent total disabilities, restricted work cases, medical treatment cases and occupational illness cases (ex-cept for non-employees and contractor employees). The rate of recordable work-related accidents is calculated relative to the total exposure hours and multiplied by 1,000,000. Total exposure hours for our own employees are recorded or calculated actual work hours from time and attendance systems, people management systems and payroll systems. Total exposure hours for non-employees are calculated by multiplying the number of non-employees (see S1-7) with a standard work year of 2,000 hours. 78 SOCIAL Lost Time Injury Frequency (LTIF) is calculated as the number of work-related injuries or illness that result in work incapability over and above the day the incident occurred, relative to total exposure hours and multiplied by 1,000,000. It is calculated for employees and non-employees combined. We have reported LTIF for many years as one of our key sus-tainability metrics that focuses on the more severe spectrum of work-related accidents. Lost work days counts the number of calendar days where an employee is incapable of working as a result of a work-re-lated accident. Work-days are counted in full days and does not include the day of the accident or incident and ends with the last full day of non-work for ISS. We have for many years internally reported on lost work hours, which follows a sim-ilar principle, but does not count weekends or unscheduled work days. Where relevant, conversion from lost work hours to lost work days is done at a factor of 4.3 hours per day. Health & safety data is recorded in our dedicated Health & Safety management system “Velocity”. S1-16: Gender pay gap Gender pay gap is calculated as average male hourly remu-neration minus average female hourly remuneration divided by average male hourly remuneration times 100. Remu-neration covers gross remuneration for male and female employees during the reporting year with hourly male and female remuneration calculated by applying a standardised work year of 1,000 and 2,000 hours for average part-time and full-time employees respectively. Remuneration for em-ployees not identifying as male or female is either excluded or proportionally allocated to males and females by relevant country. Significant work is being undertaken to prepare for the EU Pay Transparency Directive taking effect. The reporting obli-gations under ESRS S1-16 pre-empts the EU Pay Transparen-cy Directive, which is unhelpful. S1-16: CEO pay ratio (Remuneration ratio) The CEO pay ratio is calculated as the ratio between the an-nual awarded remuneration of the Group CEO to the average annual remuneration for all employees (less remuneration for the Group CEO). The average number of employees is normalised to full-time equivalents by assuming that two part-time employees equal one full-time employee. We do not have data available to perform the calculation on a “median” basis. Our preparations for the EU Pay Transparency Directive will continue during 2025 and is expected to improve our ability to utilise median data. The remuneration considered for the Group CEO (highest-paid employee) is the award-based amount. This reflects the cash value of remuneration earned for the year - including base salary, non-monetary benefits, short-term incentive programmes (STIP). In addition, this includes the value of long-term incentive programmes (LTIP) which is estimated as the fair value at 31 December of the shares to be received in March 2025, when the LTIP pro-gramme vests. The value is calculated as the actual number of shares received, if any, in March 2025 multiplied by the share price at 31 December of the reporting year. S1-17: Work-related incidents Work-related incidents of discrimination, including harass-ment, is recorded in local people management systems, lo-cal Speak-Up channels or in the Group Speak-Up channel. It covers incidents of discrimination including on the grounds of gender, racial or ethnic origin, nationality, religion or belief, disability, age, sexual orientation. S1-17: Complaints filed through Speak-Up Covers complaints received through established Speak-Up channels at Group or locally in regard to working conditions, equal treatment and opportunities and other work-related rights as defined in ESRS S1-17. Complaints that relate to more than one category is recorded under the category con-sidered most serious and significant. S1-17: Fines, penalties and compensation for damages as a result of work-related incidents and complaints and severe human rights violations Includes fines and penalties finally imposed on ISS by competent regulators for work-related incidents and com-plaints and severe human rights violations as well as specific compensation amounts for damages to affected current or former ISS employees in this regard. Reporting principles for Social (continued) 79 SOCIAL ESRS S2 Workers in the value chain Impact, risk & opportunities management S2-1Policies In our Supplier Code of Conduct and our Supply Chain Policy we lay down a set of minimum requirements, including on working conditions and equal treatment, that all suppliers must adhere to by signing up to ISS Supplier Code of Conduct or by having in place own policies of at least the same standard as the ISS Supplier Code of Conduct. It also defines our expecta-tions and requirements towards suppliers in terms of human rights emphasising our expectation that suppliers comply with international standards such as the UN Guiding Principles on Business and Human Rights. Human trafficking, forced labour and child labour are explicitly addressed in our Supplier Code of Conduct and our Supply Chain Policy and are subject to requirements to establish and maintain due diligence processes for these severe human rights areas. In our Supplier Code of Conduct, which is referenced in our standard terms and conditions, we retain the right to terminate our business relationship with suppliers that do not comply with our requirements. Our Supplier Code of Conduct and our Supply Chain Policy are both approved by the Executive Group Management (the EGM) and implemented operationally by our global Procurement function. Both policies are publicly available. For incident reports from value chain workers, see S2-2 and S2-3. S2-2Processes for engaging with valuechain workers about impacts We do not have formalised structures or engagement activities directly with workers in our supply chain. Rather, we leverage and rely on the engagement and interaction that our Supply Chain & Procurement function have with our suppliers to influ-ence their behavior towards their own workers and value chain workers and with labour organisation representatives. Our Speak-Up channels are available to workers in the supply chain as they are to all of our stakeholders. We have not during 2024 received reports of non-respect of the UN Guiding Principles on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work or OECD Guidelines for Multina-tional Enterprises involving supply chain workers. It is our firm belief that labour organisations hold a key position as intermediaries for ensuring open and transparent dialogue with supply chain workers. They benefit from high trust levels and aligned interests with supply chain workers within and across industries and geographies and we are committed to supporting access to unionisation as evidenced by our long-standing global relationship with UNI Global Union. Please refer to ESRS S1 for additional details on our labour organisa-tion relationships and engagement. S2-3Processes to remediate negativeimpacts and channels for value chain workers to raise concerns Our process for managing and addressing concerns raised by supply chain workers will follow the principles laid down in our Speak-Up Policy with the adjustments required from the need to involve the member of our supply chain in the investiga-tion and remediation process. The fundamental safeguards provided by our Speak-Up Policy in regard to “no retaliation” and confidentiality applies also to concerns raised by supply chain workers. Through our commitment to the UN Guiding Principles on Business and Human Rights and our ISS Supplier Code of Conduct we promote the establishment of suppliers’ own relevant channels through which supply chain workers can raise concerns with relevant suppliers. For details on our Speak-Up Policy and process, see ESRS G1. We have not during 2024 received reports of severe human rights issues in our supply chain. We do not have an established framework for providing support in or to remedial action for negative impacts to supply chain workers, but we may on an ad-hoc basis offer for example insights or access to key internal resources as part of remediation. Ultimately, we retain the right to terminate our business relationship with suppliers that do not adequately address appropriate remediation actions. In 2024, we have not terminated supplier relationships for violation of the Supplier Code of Conduct or for controversies in regard to workers or human rights. Through our supply chain assurance and compliance program we sample audit a small number of suppliers to assess our supplier’s adherence to our policies and work with suppliers to close identified gaps. S2-4Actions related to IRO and effectiveness of those actions We believe that our key contribution towards workers in the supply chain is achieved by setting a positive example through our own people practices and by pushing minimum standards or red lines for supplier behavior that protects against negative impacts for supply chain workers as well as encouragement around supplier behavior that can improve and positively im-pact supply chain worker conditions. We may indirectly have negative impact on supply chain workers through the business relationships we maintain with our suppliers as explained above. Our actions to address these potential indirect negative impacts are centered around our supply chain due diligence and assurance practices deployed through our Procurement function. Our supply chain policies described above are supported by a detailed set of internal procurement standards setting out requirements that our procurement and supplier engagement process must comply with. At the core is our risk categorisation of our suppliers. Our risk categorisation considers the type of goods and services provid-ed, the environment in which goods and services are delivered as well as geographical risks and potential customer impact. From these criteria suppliers are grouped in high, medium and low risk categories, which determines activities undertak-en during each supplier lifecycle phase: Vetting, Contracting, On-boarding, Operations and Off-boarding. 80 SOCIAL Impact, risk & opportunities management (continued) Regardless of risk category all suppliers are subject to vettingrequirements that include a supplier self-assessment that cover among others acknowledgment of compliance to our funda-mental policies, compliance to local law and regulations, and compliance with human rights, labour law rights and funda-mental freedom conventions. Self-assessments are reviewed by a dedicated ISS supplier vetting team that raise potential concerns with Supply Chain and Procurement professionals lo-cally or at Group level for decision on remediating action to be required or rejection. Certain very-low risk supplier categories such as legal fees, road fees, taxis and utilities are exempted from this process. Periodic reassessment is performed with high risk suppliers being reassessed annually. During 2024 approximately 1% of potential new suppliers were rejected due to lack of compliance with our requirements. It is a further requirement that all suppliers as part of the contract-ingphase sign up to the ISS Supplier Code of Conduct. On-boardingcovers training and work permit requirements. Training requirements distinguish between legally required train-ing applicable to all suppliers and risk-based training require-ments that are applicable to medium and high risk supplier cat-egories. Where service performance by a supplier involves high risk services that takes place at customer sites, it is mandatory for the supplier and its personnel to receive training in the health & safety requirements applicable at the customer site to mitigate the potential negative health & safety consequences that the service performance could have to the supply chain workforce. As part of our operationswe conduct supplier audits by ISS auditors or third-party auditors. Audit requirements are targeted among a sample number of high-risk suppliers and is influenced by the type and method of goods and service performance. For example, independent third-party audits are required in regard to GDPR and cyber-security for suppliers dealing with confiden-tial or personal information. In addition, incident management is an integrated part of all supplier relationships where potential impacts on supply chain workers are addressed and actioned with the relevant supplier. Off-boardingactivities are aimed at ensuring continued opera-tions and proper handling of sensitive or confidential informa-tion in connection with expiring supplier relationships. Our baseline audit program conducted by our Group Inter-nal Audit function provides internal assurance around the application and effectiveness of key elements of our vetting and contracting requirements. Further, we track LTIF (Lost Time Injury Frequency) for our subcontractors as the key indicator for the effectiveness of our actions to mitigate potential nega-tive health & safety impact to supply chain workers. LTIF is the frequency of incidents relative to the activity level measured as worked hours by subcontractors. Our global procurement approach does not include programs that specifically target positive impacts for supply chain workers. Metrics & targets S2-5Targets related to managing IRO Our actions to mitigate negative impacts to supply chain work-ers described above are applicable across our operations and the metrics used for tracking are considered appropriate. We have therefore not adopted or plan to adopt specific targets in this regard. 81 SOCIAL ESRS S4 Consumers and end-users Impact, risk & opportunities management S4-1 Policies We have not adopted policies specifically related to our end-users, but capture the interests of end-users as part of our data ethics, data protection and information security policies. Our Data Ethics Policy provides the overarching framework for how we work with and manage data. It is aligned with the Char-ter of Fundamental Rights of the European Union and includes principles on the areas of self-determination, human dignity, re-sponsibility, equality and fairness, progressiveness, diversity and inclusion and accountability. Further, it sets parameters around our use of AI systems. The policy applies to all ISS employees as well as suppliers and business partners that have access to data on behalf of or in collaboration with ISS. Implementation of the policy is the joint responsibility of our Group Data Privacy & Legal Compliance function and our Global IT, Digitalisation & Services function. We collect and process personal data in accordance with our Group Data Protection Policy. It adheres globally to the principles of the EU General Data Protection Regulation, and additional higher standards, if required by local law and sets requirements around data protection principles, transfer of personal data, data breach, training & awareness and control & assurance. The Group Data Protection Policy is owned by our Group Legal function and our Group Data Protection Manager. Where our Data Protection Policy establishes procedures for how we work with and manage personal data, our Group Information Security Policy aims at upholding the integrity of our IT ecosys-tem and among others prevent unauthorised access to personal data. It does so through an information security management system aligned with the ISO27001:2022 standard and is support-ed by documented procedures around organisational controls, people controls, physical controls and technological controls. Our Global Information Security function – a sub-function within our Global IT, Digitalisation & Services function – is responsible for the implementation of the Group Information Security Policy. Our human rights policy commitments do not particularly focus on data privacy related to our end-users. Please refer to S1-1 for a description of these commitments. Our Supplier Code of Conduct and our Supply Chain Policy are both approved by the Executive Group Management (EGM) and implemented operationally by our global Procurement function. Both policies are publicly available. Please refer to S2-2 and S2-3 in regard to incident reports from value chain workers. S4-2 Processes for engaging with consumers and end-usersabout impacts Our potential data privacy impact for end-users is a result of our customers having outsourced their facility services to ISS, which re-quires ISS to have access to the necessary personal data of end-us-ers to perform the services. Our customers therefore have an obli-gation to ensure that the partners and third parties to whom they provide access to personal data of their employees, are managing and processing that data in accordance with applicable regulation and standards. For that reason our primary engagement in regard to data privacy impacts for end-users is with our customers. We do engage with our end-users on a daily basis as part of our service performance as well as through regular end-user surveys conducted in collaboration with our customers, which allows for concerns or views to be voiced directly by end-users also in regard to potential data privacy issues. S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns Our Group Data Protection Policy described above establishes a firm process for handling incidents of data breaches, which is the key enabler for us to provide remediation for negative impacts to end-users. Just as for value chain workers our whistleblower channel is avail-able to end-users for raising concerns though we would consid-er it a more natural and straight forward approach for end-users to raise concerns via their employer (our customer). During 2024 we have not received data privacy concerns from end-users via our whistleblower channel. For details on our whistleblower channel and Speak Up Policy, see S1-3 and G1-1. Our Speak Up Policy is publicly available to end-users at www.issworld.com. S4-4 Actions related to IRO and effectiveness of those actions Our key actions in regard to data privacy of our end-users is our governance setup around data processing and information secu-rity and our training activities. To support that our data processing practices comply with our policies we have appointed Data Protection Managers in each of our countries of operation that provide guidance on good data mapping and processing practices and serve as escalation point for managing breaches. Processes and procedures involving processing of personal data must be documented and any changes to the processes and procedures must be updated in OneTrust, the Group privacy management system applicable to all companies in the ISS Group. This is supported by mandatory data protection training assigned in our digital Learning Management System to functions and positions typically exposed to processing personal data. Our information security operations are managed by a dedicated central team within our Global IT, Digitalisation & Services func-tion. They operate our information security management system across our global activities. Information security training is a mandatory training activity for more than 40,000 ISS employees. We track training completion rates on an ongoing basis. Manda-tory training on data protection and information security has to be retaken annually. In 2020 ISS was the subject of a severe cyber attack that tested our resilience and defense mechanisms also in regard to data privacy. The cyber attack did not compromise any personal data of our end-users. S4-5 Targets related to managing IRO Our framework and approach to avoiding data breaches and resulting negative impact for end-users is considered sufficient to reasonably mitigate the risk exposure and we have therefore not defined specific targets or metrics in this regard. Metrics & targets 82 Environment Environment How we create value The facility services sector is not a high-emitting sector and the emission profile from our direct and indirect activities is therefore relatively low with our food services having the highest intensity due to the impact from food consumption. Our insights into our customers’ facilities and operations at the same time enable us to support them. Our approach to carbon emissions is focused around these two aspects: Manage and reduce our own emissions while supporting our customers in their efforts to reduce emissions from buildings and facilities. Our own Net Zero targets remain unchanged. We aim to reach Net Zero for scope 1 and 2 by 2030 and scope 3 by 2040. The key initiatives that support our Net Zero commitments are: 1) Electrify ~18,000 vehicles by 2030 2) Reduce emissions from food with 25% by 2030 and food waste with 50% by 2027 We support our customers’ facility managers, delivering integrated services within cleaning, foods, energy asset management and technical support. We have deep insights into decarbonising the built environment, implementing energy-efficient solutions in daily operations and improving sustainable practices throughout the supply chain. Our focus areas are: Carbon reductions, minimising energy consumption, waste reductions, sustainable use of materials, and optimising environmental sustainability in our customers’ workplaces. In line with our key focus, we are advising on: energy optimisation based on monitoring and tracking of carbon emissions from workplaces space utilisation, including the re-design of office spaces to reduce portfolio of carbon emitting buildings, and the reuse of furniture integrating carbon reduction into our service products and working with our supply chain to reduce emissions from our service delivery, amongst other In this section ESRS E1 – Climate change 83 Reporting principles for Environmental88 EU taxonomy 90 Reporting principles for EU taxonomy91 EU taxonomy Annex II: Revenue92 EU taxonomy Annex II: CapEx 93 EU Taxonomy Annex II: OpEx 94 For Basis of preparation related to the standard above, see p. 57. Highlighted areas 83 Environment ESRS E1 Climate change Strategy & Governance E1-1Transition plan We are a service organisation performing facility services with la-bour and people power as the primary input. Certain consumables are integrated aspects of our service performance such as food for our food services, cleaning detergents for our cleaning services and paper towels and hygiene products for our washroom ser-vices. We rely on various categories of equipment to support our service performance such as uniforms, trolleys for cleaning prod-ucts, vacuum cleaners, scrubbers, kitchen equipment, instruments and technical devices for our technical services and ordinary office equipment (laptops, office furniture etc.). We are asset-light and our traditional CapEx related assets in all materiality are vehicles and leased facilities for our corporate support functions. These characteristics flow through in our carbon emission pro-file across scope 1, 2 and 3. Our scope 1 emissions (approx. 3%) relate to fossil fuels for our fleet of vehicles, scope 2 emissions (less than 1%) relate to energy consumption in our corporate offices and scope 3 emissions (approx. 96%) primarily relate to consumables, use of sold products and employee commuting. Understanding our carbon emission profile has significantly improved during 2024, but has also required focus and re-sources in excess of expectations going into 2024. Our climate transition plan is developed in pockets and still needs to come together in a coherent manner to fully define how each rele-vant lever shall contribute to our decarbonisation. Our new carbon management platform – Watershed – will leave us better positioned to track ongoing performance and provide stronger insights from more detailed activity data. It will update our emission measurement approach and move our methodology away from relying on extrapolations by collecting data from more than 120 business and operations systems across the Group. While our expectations were for our carbon management platform to be fully implemented in 2024, we are still working on the final process and documentation steps, which will be finalised in 2025. Emission calculations for 2024 will therefore apply unchanged methodology from previous years. From our preliminary back testing we do expect to see higher emission levels and movement within some of our main emission categories for the same underlying activities when we switch to our new carbon management platform because of our updated measurement and methodology approach. GHG targets In 2023, our near-term emission reduction targets for scope 1, 2, and 3 were validated by the Science-Based Target initiative. Beyond these validated targets, our decarbonisation ambition is anchored in our commitment to achieve Net Zero for scope 1 and 2 (market-based) by 2030 and for scope 3 by 2040. These ambitions align with the principles of the Paris Agreement’s goal of limiting global warming to 1.5 degrees Celsius. Decarbonisation levers and key actions Our key decarbonisation levers are: 1) Decarbonising our supply chain 2) Driving efficiency in own operations 3) Downstream behavioral change 4) Renewable energy Our key actions in regard to decarbonising our supply chain is related to our supplier engagement with a particular focus on our food supply chain and our largest category suppliers. Our key actions in regard to driving efficiency in our own oper-ations is the continued efficiency improvements in our service products currently focused on the roll out of our PureSpace cleaning service and our new efficiency and sustainability train-ing for our placemakers currently being developed. Our key actions in regard to driving downstream behavioral change is our continuous information, awareness and nudging activities as part of our customer and end-user engagement. Our key action in regard to renewable energy is our ongoing fleet electrification, which will reduce our scope 1 emissions and allow for renewable energy to be used for vehicle charg-ing under scope 2. We have switched a portion of our energy consumption to renewable energy, but are yet to formalise a renewable energy strategy and related actions. In addition to the levers and actions identified we rely on external circumstances such as technology development and deployment, energy infrastructure build-out and local, regional and global policy development. Cost and CapEx Our decarbonisation activities have so far not required signifi-cant dedicated funding of operating expenses. The majority of activities are executed with existing resources as an integrated part of ordinary business operations. We have not allocated increased operating expenses to decarbonisation activities and we are sensitive to increased cost in our supply chain and our own operations in our cost base. In terms of CapEx funding our transition initiatives have not identified significant CapEx investment needs. Our action in re-gard to fleet electrification is so far funded within our ordinary CapEx spend and we have not allocated excess CapEx funding capacity for this purpose. Locked-in GHG emissions We do not consider any significant carbon emissions to be locked-in or for any significant portion of assets to be consid-ered as stranded. This is a result of our generally asset-light business operations and the structure and relatively short term of the contractual relationships behind our right-of-use assets, primarily vehicles and corporate facilities. EU Taxonomy alignment and EU Paris-aligned benchmarks Our activities and business profile are not within the target area of the EU taxonomy regulation and we do not plan to further align our activities with the EU taxonomy regulation. We are not excluded from the EU Paris-aligned Benchmarks. Key elements of transition plan Environmental sustainability including our net-zero commit-ments and decarbonisation journey has been embedded within our strategic priorities for years and remains an important component of our strategic direction. Key elements of our transition plan have evolved since 2020 when we made our initial science-based target commitment. As described above we are working to bring all elements together in one coherent transition plan, to be approved by Executive Group Manage-ment (EGM) and the Board of Directors (the Board) which is a key action for 2025. Implementation of transition plan elements Implementation of our defined transition plan elements is well underway and we are executing on the actions identified as global priorities supported by actions and initiatives identified locally. While we are optimistic that certain emission reductions will be achieved organically, we need to be realistic in regard to our overall target completion. Reaching our Net Zero targets requires - in addition to technology development – clear and aligned principles for addressing cost impacts. Our scope 1, 2 and 3 ambitions are therefore to a significant extent dependent on regulatory intervention and technological progress and we welcome stronger local, regional and global reg-ulation that will level the playing field for sustainable and renewa-ble solutions with non-sustainable and non-renewable solutions. 84 Environment Impact, risk & opportunities management E1-2Mitigation policies Our Sustainability Policy sets our overall direction and approach on sustainability, including on climate change. It is approved by our Board of Directors and owned by our Executive Group Man-agement (EGM) with our Operations function – headed by our Group COO – having responsibility for executing our climate change strategy. Our Sustainability Policy addresses climate change mitigation through decarbonization and our Net Zero journey. It applies across all of our operations and is supported by our Supply Chain Policy and our Supplier Code of Conduct aimed towards our supply chain covering among other our expectations around climate change focus. We have globally signed up to the Science-Based targets initia-tive and the Coolfood Pledge. In addition, our local country or-ganisations have signed up to initiatives and standards focused on or relevant for their particular markets. Climate change has global attention and is a material topic across our stakeholder groups. As evidenced by our 2022 Stakeholder Impact assessment our stakeholders also consider climate change as a material topic for ISS, which was reaffirmed in our 2024 Customer Engagement Survey. Our relative impact on climate change from our carbon emissions is less significant. But we are influenced by the views of our stakeholders, which is why our policy and ambition on climate change combines an advocacy position with climate action. Our policies mentioned above are available at our corporate website (www.issworld.com). For internal stakeholders the policies are also available in our internal management system “Policy Hub”. E1-3Actions and resources Scope 1 levers and actions The vast majority of our scope 1 emissions relate to our vehicle fleet. With around 18,000 vehicles across the globe they are by far the largest carbon emission emitter within our scope 1. We plan to reduce scope 1 emissions using three levers: 1) Switching to low-emission or zero-emission vehicles (Decar-bonising our supply chain) 2) Instilling low-emission driving through training in driving behavior and planning/logistics (Driving efficiency in own operations) 3) Switching to renewable energy (Renewable energy) Our key action in regard to Scope 1 emissions is to switch from fossil fuel vehicles to low-emission or zero emission vehicles for our 18,000 vehicle fleet across our operations by 2030. Only to the extent combined with sourcing of renewable fuel and electricity will this action lead to lower emissions. By 2024 our vehicle fleet includes approximately 20% low-emission and zero emission vehicles – an increase of 7%-points against 2023. We have not allocated separate financial resources to this action, which is funded as part of our ordinary CapEx spend. When “Total-cost-of-ownership” metrics are on par with or favorable to traditional vehicles, we source low-emission or zero emission vehicles. For now, this depends heavily on govern-ment subsidies in local markets and technological development in the car and battery manufacturing industries. Scope 2 levers and actions The vast majority of our scope 2 emissions relate to our cor-porate buildings where management and the majority of our support staff work from though our transition from convention-al to electric vehicles will lead to a shift in our emission sources. We plan to reduce scope 2 emissions using two levers: 1) Engaging with landlords (Decarbonising our supply chain) 2) Switching to renewable energy (Renewable energy) We do not expect that activity levels or user behavior will materially change within our corporate buildings, which means that consumption reduction primarily will come from upgrading or improving the building environment in regard to energy efficiency by adapting existing corporate buildings or moving to more energy efficient buildings. We generally lease all of our corporate buildings and the energy efficiency of our corporate buildings therefore relies heavily on engaging and agreeing with landlords on upgrades and improvements of building envi-ronments and equipment. We do have expertise within energy efficiency and building management that allow us to engage deeply with landlords. The energy consumption behind our scope 2 emissions is 18% from renewable sources in 2024. As we transition our fleet from conventional to electric vehicles our scope 2 energy consump-tion will increase, which will increase the need for procuring renewable energy within scope 2. We are sensitive to the cost impact from renewable energy and we are therefore more gen-erally looking to switch to renewable energy as the price point between renewable and non-renewable solutions significantly narrow, which may be affected by market timing and market demand. Because of the relatively low impact from our scope 2 emis-sions we have not at this stage prioritised specific actions. We plan to develop actions in regard to sourcing of renewable energy in the medium term. Scope 3 levers and actions Our scope 3 emissions can roughly be split into five buckets: 1) Emissions from food (Category 1) 2) Emissions from purchased goods and services other than food (Category 1) 3) Emissions associated with our service performance (Cate-gory 11) 4) Emissions from employee commuting to and from work (Category 7) 5) Other emissions They primarily relate to our upstream value chain as illustrated below: 1) Upstream value chain73% a. Goods and services (category 1) b. Employee commuting (category 7) c. Other 2) Downstream value chain 27% a. Use of sold products (category 11) b. End-of-life treatment of sold products (category 12) c. Other Our scope 3 emissions – except for employee commuting – can be targeted in three ways: 1) Reduce the emission profile of consumables, equipment and assets used as part of our service performance (Decar-bonising our supply chain) 2) Improve efficiency of how we use and apply consumables, equipment and assets as part of our service performance (Driving efficiency in own operations) 3) Change end-user impact by reducing or changing end-user consumption (Downstream behavioral change) These can be targeted in isolation or in partnerships across the value chain with the aim to avoid, reduceor influenceemissions. 85 Environment Impact, risk & opportunities management (continued) Actions in regard to emissions from food Our food suppliers are encouraged to drive carbon reductions through optimising sourcing and logistics processes and intro-ducing low-emission products. Our food and catering experts continuously develop low-emis-sion practices and recipes that for example exchange meat for non-meat products within the boundaries set by our custom-ers. A simple example of our low emission practices is switching to plated servings from buffet style servings. We continuously engage with existing and prospective cus-tomers to introduce more plant based and low-emission diets and menus. While some customers fully embrace low-emission menus, we still experience hesitation influenced by end-user preferences and demands. The actions are not timebound, but linked to our target of reducing emissions from food by 25% by 2030. Actions are executed as part of our ordinary functional operations and we have not allocated dedicated financial resources. Our progress is tracked by our food service professionals and will benefit from our new carbon management tool - Water-shed - once fully operational in 2025. Annual reporting is filed with the Cool Food Pledge organisation as part of our Cool Food Pledge commitment. Actions in regard to food waste Our global food waste reduction initiative is another important component. The primary positive emission impact of reducing food waste is that it reduces food consumption either because of more efficient food use in the preparation phase or because of more appropriate end-user consumption. It will also result in positive impact on downstream emissions relating to the han-dling and managing of the food waste itself, but these are small in relative and absolute comparison. Besides strong practices around food waste reductions we have partnered globally with Winnow to provide leading technology to capture better data insights on food waste. We have set a target to reduce food waste by 50% in 2027. The emission reduction impact hereof will largely be part of our reduction of emissions from food described above. Actions in regard to emissions from cleaning Cleaning is our largest service type both in terms of revenue and people. We work with emission reductions as an integrat-ed part of developing more efficient cleaning methods and our PureSpace cleaning method is now introduced globally in dedicated versions within our Office product segment and our Healthcare product segment. It drives emission reductions through a more efficient utilisation of cleaning consumables (upstream emissions) and higher productivity reducing e.g. electricity consumption used for vacuuming (downstream emissions) and therefore impacts emissions within Category 1 (Purchased goods & services) and Category 11 (Use of sold products). We do not have fixed targets for the emission reductions from rolling out of PureSpace, but our use cases demonstrate emission reduction benefits as well as for example lower water consumption. Actions in regard to employee commuting We do not have a defined lever for reducing emissions from employee commuting. Our current focus centers around better understanding the actual employee commuting emissions by moving from modelling emissions based on geographical commute patterns to having primary commute input from our workforce enabled by our global roll out of MyISS. Reduction of actual employee commute emissions is heavily dependent on availability of low-cost and low-emission or zero-emission commute alternatives in public transport and infrastructure. We will continue advocating the need for significant investment in these areas as part of a just transition, but we do not foresee taking particular action over and above traditional nudging and information campaigns and we will not allocate significant financial resources to reduction initiatives. Local actions In addition to our global initiatives we have numerous local initiatives addressing emission reductions in a local context that are targeted at local emission sources or developed in partner-ship with customers, suppliers or other stakeholders locally. No significant OpEx and CapEx Climate change mitigation and decarbonisation activities are integrated into our functional operations and our operating expenses in this regard are therefore not possible to separate from other business activities. We have certain dedicated de-carbonisation cost primarily relating to people resources and IT systems. These operating expenses are not significant. As explained above our CapEx needs for climate mitigation actions are not currently significant. 86 Environment Metrics & targets E1-4Targets and adaptation The Science-Based Target initiative validated our near-term emission reduction target in 2023, which implies reductions across scope 1 and 2 by 46.5%, and reductions in scope 3 by 27.6% by 2030. For 2025, our goal is to achieve a 4.7% reduction from our baseline in each of Scope 1, Scope 2, and Scope 3 emissions. Throughout 2025, we will also establish specific reduction tar-gets for individual Scope 3 categories. This effort is part of our broader strategy to meet our near-term target for 2030 and our net-zero ambitions in the long run. In 2022, we committed to becoming net-zero by 2030 across scope 1 and 2 (market-based) and by 2040 across scope 3 categories. These net-zero targets are set in-house and are in addition to our validated near-term targets. Our net-zero targets are measured against a 2019 baseline, which we believe is unaffected by extraordinary events or circumstances, unlike the Covid-19 effects that impacted 2020. Our net-zero targets assume an absolute reduction of at least 90% of our carbon emissions against the 2019 baseline. This includes an absolute reduction of 90% for each of scope 1 and 2 by 2030, and for scope 3 by 2040. These targets do not adjust for future developments. For scope 1 emission reductions we have set a target of transi-tioning our fleet of vehicles to zero-emission vehicles by 2030. The target was set in 2020. For scope 3 emissions we have set targets for reducing emis-sions from food by 25% in 2030 and reducing food waste by 50% by 2027 both against a 2019 baseline. In 2024 we reached the midway point in our food emission target having reduced food emissions by 13% against our 2019 baseline, while our food waste reductions reached 49% against our 2019 baseline almost meeting our 2027 target. During 2025, we will use our improved insights into our carbon emission profile to map our decarbonisation journey by de-carbonisation lever across scope 1, 2 and 3 against our stated emission reduction targets as part of completing our transition plan as described in E1-1. We expect to have a residual emis-sion of up to 10% of our 2019 baseline value, which is expected to be offset. E1-5Energy consumption and mix Consumption and mix (MwH) 2024 % Fossil energy 261,993 97% Nuclear sources 3,254 1% Renewable energy Fuel, incl. biomass - - Purchased electriticy, heat steam and cooling 4,010 2% Self-generated non-fuel energy 63 0% Total renewable energy 4,073 2% Total 269,310 100% Energy intensity (MWh, DKKm) 2024 Total energy consumption (MWh) 269,310 Total net revenue 83,761 Energy intensity (MWh/mDKK) 3.22 87 Environment Metrics & targets (continued) E1-6Scopes 1, 2, 3 and GHG emissions Our 2024 performance on scope 1 emissions are impacted by lower use of fossil fuels as a result of reductions of our total ve-hicle fleet combined with switching to more low and zero-emis-sion vehicles in line with our fleet electrification target. Our 2024 performance on scope 2 emissions are impacted by lower consumption of purchased energy in our corporate facilities, primarily lower electricity consumption. Market-based scope 2 performance is negatively impacted by a lower share of renewable energy purchased. Our overall 2024 performance on scope 3 is impacted by activity levels and updated emission factors. On the positive side we start to see the impact of initiatives to reduce food emissions even with higher food volumes and despite the over-all Category 1 increasing due to other factors. The reduction from employee commuting (Category 7) is primarily a result of slightly fewer employees and updated emission factors, while the increase in Category 11 is driven primarily by kitchens pro-cessing higher food volumes. GHG intensity (tCO2e, DKKm) 2024 Total location based GHG (t CO₂e) 1,676,040 Total market based GHG (t CO₂e) 1,680,576 Total net revenue 83,761 GHG intensity location based (t CO₂e/mDKK) 20.01 GHG intensity market based (t CO₂e/mDKK) 20.06 E1-7GHG removals and mitigation projects financed via carbon credits At this stage we have not considered or decided how to engage in carbon removal or carbon offsetting for the residual portion to meet our net-zero commitments. E1-8Internal carbon pricing We do not currently apply any internal carbon pricing schemes. GHG emissions Retrospective Annual target/Base year (tCO2e, unless otherwise stated) 2019 (Base year) 2023 2024 % 2024 vs 2023 2025 2030 Near-term 2040 Net Zero Annual % target / Base year Scope 1 Gross 88,722 66,153 56,592 (14)% 52,422 47,466 8,872 4.2% hereof regulated trading schemes, % - - - Scope 2 Gross, location based 12,549 6,205 5,594 (10)% - - - Gross, market based 10,556 10,301 3) 10,131 (2)% 9,634 5,647 1,055 4.2% Scope 3 (significant) Gross, indirect 1,631,811 1,617,882 1,613,854 0% 1,537,158 1,181,431 163,181 2.5% Cat. 1 Purchased goods and services 711,751 710,897 802,170 13% Cat. 2 Capital goods 12,142 9,901 12,606 27% Cat. 3 Fuel and energy-related activities 21,954 20,968 17,820 (15)% Cat. 5 Waste generated in operations 1,434 75 645 763% Cat. 6 Business traveling 10,453 9,822 11,846 21% Cat. 7 Employee commuting 543,421 480,207 340,374 (29)% Cat. 11 Use of sold products 259,937 329,984 371,138 12% Cat. 12 End-of-life treatment of sold products 71,978 56,028 57,255 (2)% Total Location based 1,733,082 1,690,240 1,676,040 (1)% - - - Market based 1,731,089 1,694,336 1,680,576 (1)% 1,599,215 1,234,544 173,109 1)Not covered by the Independent Auditor’s limited assurance report. 2023 numbers for scope 2 (location- and market-based) and scope 3 (categories 3 and 11) have been updated with new energy emission factors used for our 2024 calculations to reflect a fair comparison. 2)We have set net-zero targets in-house in addition to our validated near-term targets. 3)Due to a reclassification of our renewable energy consumption in 2023, we have restated our scope 2 (market-based) emissions for 2023, which drives an emission increase due to the generally higher residual grid mix emission factor applied in the affected markets. Our total energy consumption for 2023 is unaffected by the reclassification. 4)Targets are aligned to our near-term SBTi validated targets. For 2025 we internally target 4.7% emission reduction for scope 1, 2 and 3. 1) 2) 4) 88 Environment Reporting principles for Environmental E1-5 metricsFossil fuel consumption Fossil fuels cover diesel, petrol, gas, biodiesel and bioeth-anol and primarily relate to consumption for our vehicles and to a small extent in our buildings. Fuel consumption data is primarily collected as actual volume consumption from external fleet management partners. For vehicles not managed through external partners consumption data is calculated from actual volume consumption on petrol cards or extrapolated from spend or mileage data. Gas consump-tion is actual consumption from meter readings or utility invoices, lessor supplied data or extrapolated from statistical sources based on m2occupancy. Electricity Electricity consumption primarily relates to our corporate facilities, but also covers electricity used for our vehicle fleet. Consumption data is metered readings, supplier data or extrapolated from statistical sources and primarily based on m2occupancy. For electricity relating to electric vehicles consump-tion is based on actual charging consumption or estimates based on e.g. mileage. Heating, steam and cooling Heating, steam and cooling consumption relates to our corporate facilities. Consumption data is metered readings, supplier data or extrapolated from statistical sources and primarily based on m2occupancy. Energy consumption at customer sites is accounted for by customers. We include it within our scope 3 emissions in line with the GHG protocol. Energy consumption and mix a) Energy from fossil sources Energy from fossil sources (diesel, petrol, gas, biodiesel and bioethanol) is converted from volumes to energy by applying volume-to-weight conversion factors in accordance with Annex 29 to the Stockholm Convention on persistent organic pollutants. Gas volumes are converted to energy at a conversion ratio of 0.01055 MWh per m3of gas. Further, energy from fossil sources cover electricity, heating, cool-ing and steam that is not from renewable or nuclear sources. b) Energy from nuclear sources Energy from nuclear sources is calculated by applying statis-tics from the International Energy Agency (IEA) of the coun-try-by-country energy mix for Total Energy Supply to each ISS operating country’s non-renewable energy consumption from electricity, heating, steam and cooling. c) Energy from renewable sources Renewable electricity, heat, steam and cooling covers energy consumption where we have an “exclusive” right to the renewable claim e.g. under Guarantees of Origin or similar instruments. It also covers any part of self-generated renewable energy that is not self-consumed, but sold into the public grid. When calculating renewable energy we have in previous years also included renewable energy based on supplier energy mix information. We have changed this practice from 2024 and only include renewable energy based on supplier energy mix when calculating Scope 2 (market-based) emissions in accordance with the GHG Protocol data hierarchy. Self-generated non-fuel energy is the self-consumed portion of energy from solar panels, windmills or similar renewable ener-gy sources. It is an insignificant element of our energy mix. We report no renewable energy from fuel, including biomass. Energy intensity We do not have operations in high climate impact sectors, but we do perform services for customers with operations in high climate impact sectors. Our energy consumption is not particularly affected by the customer segment we service, since our energy consumption relates to our own corporate real estate footprint and operation of our fleet of vehicles. Our energy intensity is therefore identical across our customer segments regardless if in high climate impact sectors or not. Energy intensity is calculated as total energy consumption (MWh) relative to total net revenue (mDKK) in our consolidat-ed financial statements. E1-6 metrics Scope 1 emissions Scope 1 emissions comprise direct CO2emissions from sources owned or controlled by the ISS Group calculated in accordance with the Greenhouse Gas Protocol. Consumption data is multiplied with emission factors from USEPA Hub April 2023 and Defra 2024 for each fuel type. Fuel relating to our chauffeur service in India is accounted for in Scope 3 (category 3) and excluded from scope 1. Please refer to fossil fuel consumption above for a description of our compilation of consumption data. Scope 2 emissions Scope 2 emissions comprise indirect tCO2e emissions from elec-tricity, heating, steam and cooling consumed in buildings leased or owned by the ISS Group as well as electricity consumed for electric vehicles. Emissions are calculated in accordance with the Greenhouse Gas Protocol. Location-based electricity emis-sions are calculated using emission factors from IEA Electricity 2022, UK Defra 2023, AU National GHA 2024 and eGrid 2023. Market-based electricity emissions are calculated using emis-sion factors from AIB Residual Mix 2023, IEA Electricity 2022, AU National GHA 2024 and eGrid 2023. Heating, cooling and steam emissions are calculated using emission factors from EU28 District Heat, DK district heat and ecoinvent 3.10. Scope 3 emissions Scope 3 emissions comprise the 8 most material categories out of the 15 scope 3 categories specified by the Green-house Gas Protocol. The remaining categories are not applicable and therefore not reported on. Spend data used relate to the financial year 2024 and is adjusted for inflation from the base year of the applicable emission factor. Purchased goods and services (category 1)include emis-sions relating to external supplier spend. Spend relating to capital goods and business travel is separately calculated in categories 2 and 6. Purchased goods and services emis-sions mainly relate to food purchased for our food services. Emissions from subcontracted services spend and cleaning services related spend activities together with food spend ac-count for approx. 93% of our category 1 emissions. Emissions are calculated from a mix of weight or quantity, direct spend and supplier data with extrapolations applied as necessary. 89 Environment Where emissions are not derived from primary source input, emission factors applied are mainly derived from Agribalyse v3.2 2024 (relating to food), USEEIO v1.2 (relating to subcon-tracting) and Sphera Solutions GmbH (relating to cleaning). Capital goods (category 2)include emissions from cleaning and kitchen machines used in connection with our service provisions. Emissions are calculated from direct spend relating to cleaning and kitchen machines multiplied with emission factors derived from USEEIO v1.2. Fuel and energy related activities (category 3)include up-stream emissions of purchased fuels and electricity, steam, heating and cooling as well as transmission and distribution losses. Consumption data is identical to what is used for our scope 1 and 2 calculations. Category 3 also includes emissions from fuel and energy consumption relating to our chauffeur services in India. Emission factors are applied from WTT IPCC Natural Gas WTT, Defra 2023, Defra 2024 and IEA 2024. Waste disposal (category 5)includes waste disposal and water withdrawal relating to our leased or owned buildings. Waste disposal is calculated on the basis of the number of staff based at our corporate offices per country and the average weight of waste generated per person per year derived from 7 use cases with waste split into four waste streams used for emission calculations with one being zero-emission recyclable waste and three waste streams having landfill emission factors applied derived from Defra 2024. Water related emissions are based on actual con-sumption data of water withdrawal or estimated based on occupancy rate or m2to which Defra 2024 emission factors are applied. Business travel (category 6)includes emissions related to air and train travel as well as hotel accommodation and is based on travel distance, transportation type and accommo-dation length data supplied by our travel agency. Emission factors for travel are applied in categories for each air and train travel depending on travel distance whereas a standard emission factor per accommodation night is applied to hotel accommodation. Emission factors are derived from Sphera Solutions GmbH and DEFRA 2024. For India and China extrapolation calculations were applied using the character-istics of Indonesia as the extrapolation base. Employee commuting (category 7)includes travel to and from the work place for ISS employees. Due to our sig-nificant number of employees, our employee commuting emissions are sizeable. Calculations are based on actual number of employees per country split into placemakers and support staff and with different assumptions applying to full-time and part-time employees. Placemakers are gener-ally assumed to commute 5 days per week for 52 weeks per year. No adjustments are made for holiday, sickness or other absence on the assumption that a temporary worker will perform the commute instead. Consequently, no emissions are separately calculated for non-employees. Support staff are assumed to commute 4 days per week to account for hybrid working patterns and work for 48 weeks per year to account for holiday and other absence. Travel distances and commute patterns are calculated on a regional basis and emission factors are derived from Defra 2024. Increased electricity and heating consumption is accounted for in regard to homeworking for days where no commuting is as-sumed for support staff. Consumption and emission factors derived from Defra 2024 are applied on a regional basis. Use of sold products (category 11)includes emissions from our use of cleaning equipment, kitchen equipment and technical equipment as part of our service at customer sites. Emission calculations are based on use cases for electric-ity consumption in regard to use of cleaning, kitchen and technical equipment and extrapolated based on equipment spend, equipment type and count or number of users. Emission factors applied are derived from eGrid 2021, UK Defra 2023, IEA Electricity 2022 and AU National GHA 2024 in regard to electricity consumption and IEA WTT 2024 and IEA T&D 2024 in regard to well-to-tank and transmission/distribution loss. End-of-life-treatment of sold products (category 12)includes emissions from cleaning chemicals, washroom prod-ucts (toilet paper, hand towels etc.), cleaning tools, machine spare parts and food waste used or generated as part of our service performance. Key supplier data is used to calculate consumption amounts from spend data and extrapolated to the remainder of spend in this category. Food waste is calculated using a fixed statistical food waste assumption on the weight of food purchase. The EU-28 emission factor for commercial waste in municipal waste incineration plant is applied to consumption data across the category except for food waste that uses Defra 2024. GHG intensity GHG intensity is calculated as total GHG emissions (tCO2e) relative to total net revenue (mDKK) in our consolidated financial statements. Vehicles Number of vehicles are all company vehicles that are owned or leased by the company and provided to an employee in order to carry out the requirements of their work i.e. to meet a particular business need, including pool vehicles and company cars. Vehicle data including the type of vehicle is recorded in internal or external fleet management systems and asset registers, including IFRS16 management modules. Reporting principles for Environmental (continued) 90 Environment EU taxonomy Framework The EU Taxonomy aims to provide a common framework to determine to what degree an economic activity can be classified as environmentally sustainable. The objective of the taxonomy is to increase transparency for investors, companies, and policymakers and thereby support channeling capital towards greener activities, preventing of greenwashing, and help companies become more sustainable. The taxonomy presents six environmental objectives concerning climate change mitigation and adaptation, protection of water resources, circular economy, pollution prevention and protection of biodiversity.To be classified as environmentally sustainable, all technical screening criteria (Minimum Social Safeguards, Do No Significant Harm’ and Substantial contribution) have to be met. We have screened our revenue generating and investment activities against the activity descriptions of the EU Taxonomy for eligible revenue, CapEx and OpEx and assessed alignment criteria applicable to eligible activities. The EU Taxonomy in its current form is directed towards activities in high emission industries such as manufacturing, transporta-tion, energy and construction. As a workplace experience and facility management company, the overall activities of ISS within cleaning, food, technical services, front- and back-end service support, workplace management and security do not fall within the targeted scope of the EU Taxonomy. In addition, we are an asset-light business with generally low investment needs. Activity screening in regard to revenue has considered (i) the NACE codes assigned as guidance to the activity descriptions in the EU Taxonomy and (ii) an individual assessment of each of our service activities split into 48 service types. Our activity screening in regard to CapEx and OpEx has considered our key asset types and cost components as recorded in our financial system. Based on this approach we have also avoided double-counting across economic activities. Our conclusion is that revenues relating to energy manage-ment service as well as CapEx and OpEx relating to vehicles and real property are taxonomy-eligible within climate change miti-gation and adaption. Alignment criteria in regard to “substantial contribution” and “do-no-significant-harm” are challenging to document and we have not yet managed to establish and ob-tain appropriate confirmations from manufacturers and suppli-ers. Likewise, while we have no reason to believe that we do not comply and uphold minimum safeguards, we want to ensure that documentation is in place. As such, none of our taxono-my-eligible activities are assessed to be taxonomy-aligned. Technical services Certain sub-components of our technical services revenue could be considered taxonomy eligible as climate change mit-igating activities. These relate to activities under “Construction and real estate” that we may undertake as part of our services; more specifically activities within installation, maintenance and repair of energy efficiency equipment (7.3) and installa-tion, maintenance and repair of instruments and devices for measuring, regulating and controlling energy performance of buildings (7.5). The taxonomy relevant elements of our technical services are not distinct in nature, but performed as part as an overarching service for which we record revenue in accordance with IFRS 15. As we are not able to separate out the taxonomy-eligible elements, we do not consider any part of the service to be taxonomy-eligible. Energy management services Our energy management services are eligible activities (9.3) for climate change mitigation and mainly consist of managing and advising on energy flows and energy consumption in customer facilities. We mainly provide energy management services in the UK, but it is an identified growth area. Eligible revenue for 2024 amount to DKK 30 million. Vehicles Vehicles are used broadly across our service portfolio as part of service performance and for management purposes are not distinct to any particular service. Taxonomy specified CapEx and OpEx related to vehicles are taxonomy-eligible (6.5). We almost exclusively lease our vehicles and CapEx is therefore primarily recorded as right-of-use assets in accordance with IFRS 16. Eligible CapEx and OpEx relating to vehicles amount to DKK 643 million and DKK 123 million respectively for 2024. Real property Our service performance takes place at our customer sites and our real property footprint is therefore largely used for our cor-porate facilities across our operating geographies. Taxonomy specified CapEx and OpEx related to real property are taxono-my-eligible (7.7). We almost exclusively lease our real property and CapEx is therefore primarily recorded as right-of-use assets in accord-ance with IFRS 16. Eligible CapEx and OpEx relating to real property amount to DKK 331 million and DKK 69 million respectively for 2024. Minimum safeguards As an overarching principle the EU Taxonomy requires business activities to be performed in accordance with principles of respon-sible business conduct within the areas of human rights, bribery/corruption, taxation and fair competiton. If these minimum safe-guards are not met, it is not possible to make claims that activities are aligned within the definition of the EU Taxonomy. We are strong supporters and advocates of human rights and we believe that we comply with the principles of the minimum safeguards through our foundational values, policy frameworks and ongoing due diligence activities. We recognise however that we have shortcomings in our ability to document our adherence. In the beginning of 2025 we will launch a human rights impact assessment supported by external experts that will help us to address our shortcomings in terms of documen-tation and pinpoint potential target areas for improvement. We have no reason to believe that our business practices do not uphold the minimum safeguards in regard to human rights and will confirm so when documented through our human rights assessment. In regard to corruption ISS has in place an anti-corruption poli-cy, internal controls and measures for preventing and detecting bribery that are considered adequate. None of ISS’ top man-agement members has been convicted in court of corruption. In regard to taxation ISS has in place a Tax Policy anchored with the Board of Directors and has put in place tax risk manage-ment controls and processes considered to be adequate. None of the legal entities within the ISS Group has been found guilty of tax evasion. In regard to fair competition ISS has in place a Competition Law Policy and addresses fair competition as fundamental ISS principle in its Code of Conduct: Employee awareness is pro-moted and training programs and sessions are conducted at regular intervals. Code of Conduct training is mandatory for all employees. None of ISS’ top management members has been convicted in court for breaching competition laws. See p. 91 for a description of our taxonomy-related reporting principles and taxonomy reporting templates. 91 Environment Reporting principles for EU taxonomy In accordance with Commission Delegated Regulation (EU) 2021/2178 which specifies the content and presentation to be disclosed, ISS discloses the proportion of our turnover, CapEx and OpEx that relates to Taxonomy-eligible and Taxonomy-aligned economic activities. Taxonomy-eligibility states the share of ISS’ turnover, CapEx and OpEx, which are covered by the activity descriptions in the Taxonomy delegated acts. Taxonomy-alignment states whether these Taxonomy-eligible economic activities qualify as environmentally sustainable as described in the Taxonomy Regulation’s delegated acts. Eligibility and alignment performance is expressed with KPIs for each of turnover, CapEx and OpEx as explained below. We have no nuclear economic activities as defined in Sections 4.26, 4.27, 4.28, 4.29, 4.30 and 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139. Disclosing that we have no nuclear economic activities also in tabular format according to Annex XII of Commission Delegated Regulation (EU) 2022/1214 serves no separate purpose and is therefore excluded. KPI for turnover For purposes of calculating the eligibility KPI the denominator for turnover is defined as total revenue in accordance with IFRS as presented in note 1.1 of the consolidated financial statement. The numerator for turnover is the revenue associated with taxonomy-eligible activities. KPI for CapEx Total CapEx consists of additions to fixed assets (including right-of use) and intangible assets as well as such additions from acquisitions. For taxonomy reporting purposes goodwill is not included in CapEx as it is not defined as an intangible asset under IAS 38, which is also the main reason for the difference between our total CapEx for taxonomy purposes and our total CapEx reported in accordance with IFRS see note 2.6 of our consolidated financial statement. The share of taxonomy-eligible CapEx is calculated as: Taxonomy-eligible CapEx KPI (additions) = eligible CapEx/total CapEx. KPI for OpEx Total OpEx consists of direct non-capitalised costs that relate to research and development, building renovation, short-term lease, maintenance and repair and any other direct expenditures relating to the day-to-day servicing of property, plant and equipment assets. It excludes amortisations and impairments. The main difference between our total OpEx for taxonomy purposes and our total OpEx reported in accordance with IFRS is salary and employee cost that are recognised under IFRS, but not considered for taxonomy purposes. The share of taxonomy-eligible OpEX is calculated as: Taxonomy-eligible OpEx KPI (repair and maintenance) = eligible OpEx/total OpEx. 92 EU Taxonomy ANNEX II Revenue Proportion of revenue from products/services associated with taxonomy-aligned economic activities Environment 93 EU Taxonomy ANNEX II CapEx Proportion of CapEx from products/services associated with taxonomy-aligned economic activities 1) Restated based on higher Taxonomy non-eligible CapEx (customer contracts). Environment 94 OpEx Proportion of OpEx from products/services associated with taxonomy-aligned economic activities 1) Not disclosed in 2023 as it is insignificant relative to total OpEx. Environment EU Taxonomy ANNEX II 95 Governance Governance How we create value In ISS, we are committed to carrying out our activities according to principles of good corporate governance and ensuring that human rights, social, environmental and ethical commitments of ISS are reflected in all our dealings with our placemakers, customers, suppliers, public institutions and other stakeholders. We conduct our business in a lawful manner, and we are committed to combatting corruption and bribery and upholding the highest ethical standards in all areas of our business. We promote and ensure that concerns can be raised, and grievances can be made without any risk of retaliation through our Speak Up Policy and system, which is available to all placemakers and stakeholders. We have a defined set of values providing the foundational backbone for our business conduct: Entrepreneurship Honesty Quality Responsibility Unity A strong value base is essential for us in ensuring that we interact with stakeholders in a fair and respectful manner just as we expect to be treated fairly and with respect by our stakeholders. In this section ESRS G1 – Business conduct96 Reporting principles for Governance98 For Basis of preparation related to the standard above, see p. 57. Highlighted areas 96 Governance ESRS G1 Business conduct Impact, risk & opportunities management G1-1 Policies and corporate culture andassessment of IRO Our purpose“Connecting people and places to make the world work better” is not just a pay-off. It also captures the essence of what we want to achieve as a business and how we want to achieve it. “Make the world work better” refers to the direct service value that our customers experience and that supports their specific needs, but it also refers to a general positive impact on the world and the people we interact with as a business. We are guided by our values that have been our foundation for decades yet still influenced by the world around us. Listening lead us to the recent addition of our fifth value “Unity” that reflect trust, empowerment and belonging as part of our core fundamentals. Our values come to life in our Code of Conduct that sets the overall parameters around how we want to do business and how we require our employees to conduct themselves as ISS representatives. This includes our commitments to and around good and fair business practices in accordance with interna-tional standards of United Nations Global Compact, United Nations Declaration of Human Rights, the Core Conventions of the International Labour Organisation and the United Nations Guiding Principles on Business and Human Rights. It is anchored with the Board of Directors (the Board) and the Executive Group Management (EGM) and reviewed annually. We engage with 40,000+ customers and ~49,000 suppliers on multiple organisational levels, which exposes us to risk in regard to business ethics. We are not generally a heavily regulated in-dustry with deep interactions or dependencies on regulators or public authorities and our business ethics risk exposure towards public authorities is therefore primarily a result of participation in public tenders or public sector customer contracts. We ensure that our core principles “flow up” to our supply chain through our Supplier Code of Conduct that hold all suppliers in our supply chain to a set of minimum standards as a prerequi-site for doing business with us, please refer to G1-2. We ensure that our core principles “flow down” to our customers and other business partners through awareness activities typically by including our Code of Conduct as part of contractual negotia-tions. Training in the Code of Conduct is mandatory for our own employees and includes also specific awareness training on our Speak Up channel, please refer to S1. Our commitment to ethical business practices around anti-cor-ruption and anti-bribery is clearly stated in our Anti-Corruption and Anti-Bribery Policy statement endorsed by our Group CEO and available at our corporate website. It is supported by our Anti-Corruption Policy which provides principles and guidance for all employees on areas such as bribery, facilitation payments, gifts & entertainment and political contributions. Further, our belief in fair competition as a business fundamental is detailed in our Competition Law Policy applicable to all employees. Ensuring that incidents are appropriately dealt with requires that information is escalated to the right management levels. Our Escalation Policy prescribes matters of particular impor-tance that are to be escalated through defined management lines, which includes business integrity issues. The Escalation Policy in combination with our ordinary management practices, our Speak Up Policy and our internal audit programme provide our due diligence foundation in regard to business conduct. Our whistleblowing channel – Speak Up With global activities and millions of interactions daily there will be instances where our practices or actions are wrong or inconsiderate. We are committed to continuously improving our practices, which starts by establishing proper channels for listening. In a daily operational setting our management practices offer a variety of opportunities and channels to raise concerns as an employee, a supplier, a customer, an investor or other stakeholder. But we need to ensure that a separate channel is available for raising the most severe and harmful issues either because other channels are not appropriate or accessible or because our ordinary management practices fail to deliver proper resolution. For years we have made available a Speak Up channel through which concerns can be raised anonymously, confidentially and without fear of retaliation by employees, business partners and other stakeholders. It is governed by our Speak Up Policy, which is publicly available on the global and all local ISS websites alongside our Code of Conduct and is translated into 26 local languages across our countries of operation. The policy identifies the reporting scope as suspected misconduct, possible breach of regulations or internal policies or concerns that could have an adverse impact on the reputation, operations and performance of the business of ISS and which, due to the nature of the con-cern, cannot be reported through the normal reporting lines. Our Speak Up channel is operated by an external third-party provider and can be accessed via email, website and by phone. Instances reported are governed and managed in accordance with our Speak Up Policy and a detailed Speak Up protocol. Initial screening for conflicts of interest is done by and external law firm and subsequently reviewed by our Speak Up team within the Group Internal Audit function. Most reports received concern disagreements on traditional HR related issues such as salary levels and are referred back to local management functions for resolution. Reports received within the scope of the Speak Up Policy are reviewed and assessed by the Business Integrity Committee, a committee under the EGM, that consists of the Group CFO, the Group Chief People & Technology Officer, the Group General Counsel and the Head of Group Internal Audit. The Chairman of the Business Integrity Committee reports to the Audit & Risk Committee as a fixed agenda item on all meetings. Our Speak Up Policy and system for reporting concerns com-plies with the Danish Whistleblower Act, which implements the EU whistleblower directive in Denmark. In 2024 we continued to monitor the implementation of the directive in ISS’s EU based countries and provided guidance on good practices around setting up local reporting channels, considering local legal requirements around whistleblowing. All ISS Group Policies and Standards have a dedicated section with information on the Speak Up reporting system and chan-nels for raising concerns. We also operate an extensive internal audit program through our Group Internal Audit function. Our internal audit program has a general perspective and a topical perspective. The gen-eral perspective aims to audit all countries within a three year period on a set of baseline fundamental controls that include areas such as cascading of the Code of Conduct in accordance with policy requirements, mandatory training completion and adherence to core controls designed to mitigate business ethics risk such as our Corporate Governance Policy and our authority matrix. The topical perspective zooms in on areas of documented or perceived risk. If issues that fall under the scope of the Speak Up Policy are identified in another manner or through another channel than our Speak Up channel, it will be recorded and added to the Speak Up system to ensure that we capture a consolidated view of issues identified and resolve them appropriately. 97 Governance Impact, risk & opportunities management (continued) Training Our Code of Conduct is a mandatory part of the employment agreement that we make with employees. All employees are required to take mandatory training in the ISS Code of Conduct, which includes business ethics themes such as corruption and bribery. Training is available in digital and physical (classroom) format and can therefore reach also employees with limited ac-cess to digital equipment or with limited digital or literacy skills. Code of Conduct training assigned to employees digitally via our Learning Management platform has to be completed within 2 months from the employment commencement date and will need to be refreshed every two years. This will cover functions within procurement, finance, commercial, key account manage-ment and executive management at Group and country level, which are the functions considered most at risk in respect of corruption and bribery. Line management escalation is triggered in case of non-compliance with training requirements. We track and monitor training progress and our statistics show overall strong coverage across our workforce. G1-2Relationships with suppliers Our supply chain consists of approximately 49,000 suppliers. We manage our supply chain with a focus on ensuring resil-ience and continued availability of cost-efficient supplies at our customer sites in a compliant, sustainable and ethical manner. We do so by forming strategic partnerships with key suppliers to drive economies of scale and innovative power for larger procurement categories and by streamlining procurement practices for our remaining procurement spend. We have an organically diverse supply chain that contains large, medium and small suppliers. Certain fundamental principles aimed at preventing negative impacts are non-negotiable and shall be adhered to by all suppliers, but for larger suppliers we require practices and ambitions that go beyond. We manage our supply chain through our global Procurement function organised around procurement categories, opera-tional geographies and supply chain-based risk assessments. All suppliers in ISS’s supply chain are risk assessed to identify and mitigate the ESG risks through a centralised vetting and onboarding process. We continously monitor suppliers against sanctions and watchlists to eliminate any such risks. Our supply chain risk and assurance program ensures that the critical supply chain is monitored for performance risks. A sample number of critical suppliers are audited, through an independent third-party agency, annually to close any gaps identified on the ESG compliance requirements of ISS. For fur-ther description of our supply chain engagement and practices please refer to S2-4. In the ISS Supplier Code of Conduct we specify our fundamen-tal principles as well as the minimum requirements that all sup-pliers must meet in order to do business with ISS. This includes areas within ethical and responsible business conduct, social sustainability & human rights and environmental sustainability & climate action. Our own procurement practices are described in our Supply Chain Policy and further detailed in our Supply Chain & Procure-ment standard. Our standard payment term for small business suppliers is 30 days. For other suppliers our standard payment term is “end of month + 95 days”. Payment terms are subject to compliance with local statutory regulation on payment terms. Each country operates a Procure-to-Pay system where purchas-es are executed through purchase orders with service or goods receipt confirmed. Business is awarded to suppliers on the basis of four key award criteria. Best value & financial benefits, compliance, supportive of sustainability goals and driving strategic service outcomes. In competitive sourcing processes environmental sustainability must have a minimum of 20% weight in the award criteria. G1-3Prevention and detection of corruption and bribery Our procedures for managing allegations or incidents of corruption and bribery follow similar principles as described above under G1-1. Investigations are conducted by our Group Internal Audit function and may involve internal and external resources in doing so. Findings are reported to the Business Integrity Committee and in turn to the Audit & Risk Committee. Group Internal Audit is functionally separate from management with the Head of Group Internal Audit reporting directly to the Chair of the Audit & Risk Committee. All employees including functions-at-risk employees are trained in our Code of Conduct, which includes anti-corruption and anti-bribery themes. We generally consider employees within Procurement, Finance, Commercial, Key Account Management and Executive Management (Group and Country) to be at-risk functions in regard to corruption and bribery. 100% of these functions are covered by training programmes. On an ad-hoc basis in-depth training sessions on anti-corruption and anti-bribery are conducted by our Legal function. Training materials from these sessions are available to all ISS employees. 98 Governance Metrics & targets G1-4 Incidents of corruption or bribery During 2024 no legal entity within the ISS Group was convicted or fined for violation of anti-corruption and anti-bribery laws. Nor was any of our employees as far as we are aware convicted or fined for violation of anti-corruption and anti-bribery laws in their capacity as ISS employees. We continuously monitor and refine our processes and practices around anti-corruption and anti-bribery and all our policies are subject to review annually or at regular specified intervals. During 2024 we have substantiated one alleged corruption and bribery incident that also resulted in employees being dismissed or disciplined and strengthening of control and policy frameworks. Corruption and bribery (C&B) incidents (Number) 2024 Confirmed incidents, number 1 Convictions for violations of anti-corruption and anti-bribery laws 0 Fines, penalties and compensation For violations of anti-corruption and anti-bribery laws 0 G1-6 Payment practices Our standard payment terms are described above under G1-2. We are subject to statutory payment regulation in many of our operating geographies that often provide different payment terms than our standards. We capture details of payment terms and payments made in our global spend management tool Sievo and we are able to track payment history and profile on each of our 49,000 suppliers. Our calculations of payment terms cover our 2024 spend and more than 7.3 million invoices. The average time to pay an invoice in 2024 was 48 days. At the end of 2024 we did not have outstanding legal proceedings for late payments to suppliers. Payment practices (Number, %) 2024 Average time (days) to pay an invoice 48 Payments aligned with standard payment terms (% of spend) 0-30 days 45% 31-60 days 31% +60 days 23% Other 1% Outstanding legal proceedings for late payments 0 Reporting principles for Governance G1-3: Functions-at-risk of corruption and bribery The functional areas of Procurement, Finance, Commer-cial, Key Account Management and Executive Manage-ment (Group and Country), including direct reports, are considered as being “at-risk” functions across our operational countries. G1-4: Confirmed incidents of corruption or bribery Corruption and bribery cover incidents of abuse of entrusted power by ISS employees in that capacity for private gain, hereunder financial as well as non-finan-cial advantages, as provided in the ISS Anti-Corruption Policy. “Confirmed” means incidents that are assessed internally, e.g. by the Business Integrity Committee to be events of corruption or bribery or established so by a final ruling from an external authority or final court deci-sion. It does not cover incidents under investigation. Incidents of corruption and bribery are recorded in our Speak-Up system. Employees being disciplined may include reprimands, formal warnings, training requirements, reassignment, and demotion. G1-4: Convictions for violations of anti-corruption and anti-bribery laws Includes final unappealable convictions in criminal proceedings against ISS or any ISS employee in their capacity as an ISS employee for violations of anti-cor-ruption and anti-bribery laws. G1-4: Fines for violations of anti-corrup-tion and anti-bribery laws Final and unappealable fines imposed by competent au-thorities for violations of anti-corruption and anti-brib-ery laws by ISS or any ISS employee in their capacity as an ISS employee. G1-6: Average time to pay an invoice Measures the number of days it takes to pay an invoice from the time that the applicable payment term com-mences. It is measured on an “invoice by invoice” level and does not consider the value of each invoice. The average time to pay an invoice is measured and calculated in our global spend management system “Sievo” and is made on invoice and payment data con-solidated from local ERP systems across our countries of operation. G1-6: Payments aligned with standard payment terms Breaks down our supplier spend on applicable payment terms in brackets of 0-30 days, 31-60 days and 60+ days. Data is captured in our global spend management system “Sievo”. G1-6 Legal proceedings outstanding for late payments Legal proceedings currently outstanding instigated with a competent court by a supplier against an ISS entity for late payment. It does not include disputes relating to the quality, quantity or characteristics of the goods, services or similar supplied to ISS. 99 List of datapoints that derive from other EU legislation Section Data point SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material (Yes/No) Section Page ESRS 2 GOV-1 21 (d) Board’s gender diversity X X Yes General 57 ESRS 2 GOV-1 21 (e) Percentage of board members who are independent X Yes General 57 ESRS 2 GOV-4 30 Statement on due diligence X Yes General 56 ESRS 2 SBM-1 40 (d) i Involvement in activities related to fossil fuel activities X X X No - - ESRS 2 SBM-1 40 (d) ii Involvement in activities related to chemical production X X No - - ESRS 2 SBM-1 40 (d) iii Involvement in activities related to controversial weapons X X No - - ESRS 2 SBM-1 40 (d) iv Involvement in activities related to cultivation and production of tobacco X No - - ESRS E1-1 14 Transition plan to reach climate neutrality by 2050 X Yes Environment 83 ESRS E1-1 16 (g) Undertakings excluded from Paris-aligned Benchmarks X X No - - ESRS E1-4 34 GHG emission reduction targets X X X Yes Environment 86 ESRS E1-5 38 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) X Yes Environment 86 ESRS E1-5 37 Energy consumption and mix X Yes Environment 86 ESRS E1-5 43 Energy intensity associated with activities in high climate impact sectors X No - - ESRS E1-6 44 Gross Scope 1, 2, 3 and Total GHG emissions X X X Yes Environment 87 ESRS E1-6 53-55 Gross GHG emissions intensity X X X Yes Environment 87 ESRS E1-7 56 GHG removals and carbon credits X No - - ESRS E1-9 66 Exposure of the benchmark portfolio to climate-related physical risks paragraph X No - - ESRS E1-9 66 (a) 66 (c) Disaggregation of monetary amounts by acute and chronic physical riskLocation of significant assets at material physical risk X No - - ESRS E1-9 67 (c) Breakdown of the carrying value of its real estate assets by energy-efficiency X No - - ESRS E1-9 69 Degree of exposure of the portfolio to climate-related opportunities paragraph X No - - ESRS E2-4 28 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil X No - - ESRS E3-1 9 Water and marine resources X No - - ESRS E3-1 13 Dedicated policy X No - - ESRS E3-1 14 Sustainable oceans and seas X No - - ESRS E3-4 28 (c) Total water recycled and reused X No - - ESRS E3-4 29 Total water consumption in m3per net revenue on own operations X No - - ESRS 2-IRO 1 – E4 16 (a) i - X No - - ESRS 2-IRO 1 – E4 16 (b) - X No - - ESRS 2-IRO 1 – E4 16 (c) - X No - - ESRS E4-2 24 (b) Sustainable land / agriculture practices or policies X No - - ESRS E4-2 24 (c) Sustainable oceans / seas practices or policies X No - - ESRS E4-2 24 (d) Policies to address deforestation paragraph X No - - ESRS E5-5 37 (d) Non-recycled waste X No - - OTHER 100 Section Data point SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material (Yes/No) Section Page ESRS E5-5 39 Hazardous waste and radioactive waste X No - - ESRS 2-SBM3 – S1 14 (f) Risk of incidents of forced labour X Yes Social 67 ESRS 2-SBM3 – S1 14 (g) Risk of incidents of child labour X Yes Social 67 ESRS S1-1 20 Human rights policy commitments X Yes Social 67 ESRS S1-1 21 Due diligence policies on issues addressed by the fundamental International Labour Organisation Conventions 1 to 8 X Yes Social 67 ESRS S1-1 22 Processes and measures for preventing trafficking in human beings X Yes Social 67 ESRS S1-1 23 Workplace accident prevention policy or management system X Yes Social 67 ESRS S1-3 32 (c) Grievance/complaints handling mechanisms X Yes Social 68 ESRS S1-14 88 (b) and (c) Number of fatalities and number and rate of work-related accidents X X Yes Social 75 ESRS S1-14 88 (e) Number of days lost to injuries, accidents, fatalities or illness X Yes Social 75 ESRS S1-16 97 (a) Unadjusted gender pay gap X X Yes Social 76 ESRS S1-16 97 (b) Excessive CEO pay ratio X Yes Social 76 ESRS S1-17 103 (a) Incidents of discrimination X Yes Social 76 ESRS S1-17 104 (a) Non-respect of UNGPs on Business and Human Rights and OECD guidelines X X Yes Social 79 ESRS 2-SBM3 – S2 11 (b) Significant risk of child labour or forced labour in the value chain X Yes General 60 ESRS S2-1 17 Human rights policy commitments X Yes Social 67, 79 ESRS S2-1 18 Policies related to value chain workers X X Yes Social 79 ESRS S2-1 19 Non-respect of UNGPs on Business and Human Rights and OECD guidelines X X Yes Social 79 ESRS S2-1 19 Due diligence policies on issues addressed by the fundamental International Labour Organisation Conventions 1 to 8 X Yes Social 79 ESRS S2-4 36 Human rights issues and incidents connected to its upstream and downstream value chain X Yes Social 79 ESRS S3-1 16 Human rights policy commitments X No ESRS S3-1 17 Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines X X No ESRS S3-4 36 Human rights issues and incidents X No ESRS S4-1 16 Policies related to consumers and end-users X Yes Social 81 ESRS S4-1 17 Non-respect of UNGPs on Business and Human Rights and OECD guidelines X X No ESRS S4-4 35 Human rights issues and incidents X No ESRS G1-1 10 (b) United Nations Convention against Corruption X No ESRS G1-1 10 (d) Protection of whistleblowers X No ESRS G1-4 24 (a) Fines for violation of anti- corruption and anti-bribery laws X X Yes Governance 98 ESRS G1-4 24 (b) Standards of anti-corruption and anti-bribery X No OTHER 101 Case SOCIAL When ISS is more than a job – Sampatti Chavan’s inspiring story India is the world’s most populous nation and the fifth- largest economy, however, it continues to grapple with substantial unemployment. ISS India, a certified “Great Place to Work”, with a dedicated workforce of 42,000 placemakers, is actively addressing these challenges. By empowering its placemakers and fostering growth, ISS contributes to nation-building and stability in the workforce. One of ISS’s placemakers, Sampatti Chavan, exemplifies this mission. Before joining ISS, Sampatti lived in rented accommodation with fears over being evicted at any point, and faced constant job insecurity – a challenge that grew as family responsibilities increased. In 2000, ISS offered him a role as a Training Supervisor, providing not only stability but also the opportunity to grow and buy his own house in 2010. Today, he has risen to Recruitment Manager for ISS India in Mumbai. ISS India’s new initiative “Education for All” programme (also known as “Shikhar”) provides full funding for placemakers to complete 10th to 12th grade education, putting them on the path towards a brighter future, and Sampatti is using the programme to complete his 12th-grade education. Sampatti’s journey reflects ISS’s support beyond just career development. When his young son needed emergency medical care, ISS stepped in with financial assistance, easing a crucial burden for his family. By paying placemakers on the 1st of every month – a rare practice today and unlike other organisations, ISS India provides Sampatti with added security, as those living in Virar face their electrical power being cut if they do not pay their bills on time. The Chavan family’s connection with ISS has only deepened over time. Sampatti’s wife now holds a Senior Supervisor role at ISS, and their daughter, inspired by her parents’ journey, recently joined as a Front Office Executive. ISS also supported Sampatti in getting the admission loan for his daughter’s university studies. Sampatti reflects: “The security ISS provides my family is why I have faith in them. We will always give our 100%.” For him, ISS is more than a job – it’s a foundation for growth and a testament to ISS’s commitment to uplifting India’s workforce. “The security ISS provides my family is why I have faith in them. We will always give our 100%.” Sampatti Chavan ISS placemaker 102 CASE GOVERNANCE Engagement model with Diversey: enhancing operations and sustainability ISS’s supplier engagement model with Diversey demonstrates how a strategic, long-term partnership can go beyond a traditional client-supplier relationship to drive impactful operational improvements while advancing sustainability. Our collaboration focuses on reducing both environmental impact and operational costs, resulting in tangible benefits across our global operations. This model operates across both global and local levels. Solutions identified globally are adapted to local needs, while locally successful solutions can be scaled internationally, maximising impact and improving efficiency throughout ISS. Two key forums – the Sustainability Board and the Product Innovation Blueprinting process – help guide and prioritise initiatives, ensuring alignment with our sustainability and operational needs. The Sustainability Board is dedicated to identifying and tracking solutions that reduce ISS’s environmental footprint while optimising performance. One example is the rollout of Diversey’s advanced chemical dosing systems in the UK, projected to reduce costs by 43%, plastic waste by 32%, and CO2 emissions by 9.5% by year-end. James Reynolds, Managing Director, Services – Operations Performance for UK & Ireland, highlights that “through our collaboration with Diversey on this initiative, we’re able to achieve key cost efficiencies and sustainability benefits that support the UK’s 2024 commitments and beyond. This partnership allows us to bring effective solutions into our operations, aligning with both our local goals and ISS’s global sustainability vision.” The Product Innovation Blueprinting process further enhances our collaboration by allowing Diversey to pinpoint specific needs within ISS’s operations. Recent interviews with ISS teams across multiple countries identified high-priority areas such as robotics for operational efficiency, streamlined product portfolios, and sustainable product ranges. Beyond individual initiatives, our engagement model ensures that Diversey’s operations and supply chain support ISS’s ambitious Science-Based Targets initiative (SBTi) goals for net-zero emissions by 2040. This alignment strengthens our sustainability commitments and enhances the effectiveness of our cleaning operations. This collaborative approach highlights how working with the right supplier creates a mutually beneficial partnership where sustainability and cost reduction go hand in hand, enabling both companies to achieve their broader business goals. “With The Product Innovation Blueprinting process, Diversey can develop solutions tailored to ISS’s operational goals while aligning with our broader sustainability objectives. It also allows us to bring the needs of our customers forward and put these on the innovation agenda.” Trine Lops Head of Global Cleaning Services 103 ISS at a glance Financial statements 104 FINANCIAL STATEMENTS Consolidated financial statements Primary financial statements Statement of profit or loss 105 Statement of comprehensive income 105 Statement of cash flows 106 Statement of financial position 106 Statement of changes in equity 107 Significant events 108 Significant estimates and judgements 109 1 Operating profit 110 1.1 Segments 111 1.2 Revenue 113 1.3 Employee costs 116 1.4 Other income and expenses, net 116 2 Operating assets, liabilities and free cash flow 117 2.1 Trade receivables and credit risk 118 2.2 Other receivables 119 2.3 Other liabilities 119 2.4 Changes in working capital 119 2.5 Provisions, contingencies, guarantees and commitments 120 2.6 Right-of-use assets, property and equipment 123 2.7 Free cash flow 124 3 Strategic investments and divestments 125 3.1 Intangible assets 126 3.2 Impairment tests 127 3.3 Acquisitions 130 3.4 Discontinued operations and divestments 131 4 Capital structure 132 4.1 Equity 133 4.2 Financing 135 4.3 Financial risk management 136 4.4 Interest rate risk 137 4.5 Liquidity risk 138 4.6 Currency risk 139 5 Tax 140 5.1 Income tax 141 5.2 Deferred tax 142 6 Remuneration 143 6.1 Management remuneration 144 6.2 Share-based payments 144 7 Other required disclosures 147 7.1 Pensions and similar obligations 147 7.2 Hyperinflation in Türkiye 150 7.3 Related parties 151 7.4 Fees to auditors 151 7.5 Subsequent events 151 8 Basis of preparation 152 8.1 Other material accounting policies 152 8.2 In-year changes 153 8.3 New regulations 153 8.4 Group companies 1 54 8.5 Definitions 1 55 105 FINANCIAL STATEMENTS Statement of profit or loss 1 January – 31 December (DKKm) Note 2024 2023 Revenue 1.1, 1.2 83,761 78,681 Employee costs 1.3 (52,822) (49,607) Consumables (7,519) (7,323) Other operating expenses (17,808) (17,034) Depreciation and amortisation 2.6, 3.1 (1,469) (1,417) Operating profit before other items 4,143 3,300 Other income and expenses, net 1.4 (163) (93) Amortisation/impairment of customer contracts 3.1 (91) (69) Operating profit 1.1 3,889 3,138 Finance income 4.2 314 185 Finance costs 4.2 (904) (792) Profit before tax 3,299 2,531 Income tax 5.1 (658) (554) Net profit from continuing operations 2,641 1,977 Net profit from discontinued operations 3.4 (52) (1,652) Net profit 2,589 325 Attributable to: Owners of ISS A/S 2,581 279 Non-controlling interests 8 46 Net profit 2,589 325 Earnings per share, DKK Basic earnings per share (EPS) 4.1 14.3 1.5 Diluted earnings per share 4.1 14.1 1.5 Earnings per share for continuing operations, DKK Basic earnings per share (EPS) 4.1 14.5 10.4 Diluted earnings per share 4.1 14.4 10.3 Statement of comprehensive income 1 January – 31 December (DKKm) Note 2024 2023 Net profit 2,589 325 Items that will not be reclassified to profit or loss: Remeasurement gain/(loss), defined benefit plans 7.1 (140) (462) Asset ceiling, defined benefit plans 7.1 (28) 299 Tax 5.2 36 33 Items that may be reclassified to profit or loss: FX adjustments of foreign entities 4.1 6 (478) Recycling of accumulated FX adj., country exits 4.1 - (18) Hyperinflation restatement of equity at 1 January 7.2 477 467 Fair value adjustments of net investment hedges 4.1 - (84) Other comprehensive income 351 (243) Comprehensive income 2,940 82 Attributable to: Owners of ISS A/S 2,799 55 Non-controlling interests 141 27 Comprehensive income 2,940 82 106 FINANCIAL STATEMENTS Statement of cash flows At 31 December (DKKm) Note 2024 2023 Operating profit before other items 4,143 3,300 Operating profit before other items from discontinued operations 3.4 (38) (154) Depreciation and amortisation 2.6, 3.1 1,469 1,464 Non-cash items related to hyperinflation 7.2 (80) (90) Share-based payments 93 72 Changes in working capital 2.4 (495) 196 Changes in provisions, pensions and similar obligations (380) (468) Other expenses paid (59) (42) Interest received 207 120 Interest paid (671) (578) Income tax paid (462) (428) Cash flow from operating activities 3,727 3,392 Acquisitions 3.3 (510) (373) Divestments 3.4 (350) 25 Acquisition of intangible assets, property and equipment (634) (719) Disposal of intangible assets, property and equipment 15 16 Change in financial assets (57) 9 Cash flow from investing activities (1,536) (1,042) Proceeds from issued bonds 4.2 3,696 - Repayment of bonds 4.2 (2,237) - Repayment of lease liabilities 4.2 (963) (791) Other financial payments, net 4.2 (259) (147) Transactions with non-controlling interests - (6) Dividends paid to shareholders 4.1 (425) (390) Purchase of treasury shares 4.1 (1,217) - Cash flow from financing activities (1,405) (1,334) Total cash flow 786 1,016 Cash and cash equivalents at 1 January 6,093 5,214 Total cash flow 786 1,016 Foreign exchange adjustments (50) (137) Cash and cash equivalents at 31 December 4.2, 4.5 6,829 6,093 Free cash flow 2.7 1,996 1,775 Statement of financial position At 31 December (DKKm) Note 2024 2023 Assets Intangible assets 3.1, 3.2 24,359 23,272 Right-of-use assets 2.6 2,424 2,200 Property and equipment 2.6 998 926 Deferred tax assets 5.2 885 962 Other financial assets 7.1.4 605 195 Non-current assets 29,271 27,555 Inventories 251 239 Trade receivables 2.1 12,449 11,354 Tax receivables 120 126 Other receivables 2.2 1,721 1,628 Cash and cash equivalents 4.2, 4.5 6,829 6,093 Assets held for sale 3.4 - 698 Current assets 21,370 20,138 Total assets 50,641 47,693 Equity and liability Equity attributable to owners of ISS A/S 4.1 11,143 9,893 Non-controlling interests 4.1 770 629 Total equity 11,913 10,522 Borrowings 4.2 13,584 13,427 Pensions and similar obligations 7.1 1,316 1,135 Deferred tax liabilities 5.2 1,156 1,320 Provisions 2.5 372 387 Non-current liabilities 16,428 16,269 Borrowings 4.2 4,757 3,292 Trade and other payables 7,387 7,259 Tax payables 420 155 Other liabilities 2.3 9,505 8,482 Provisions 2.5 231 365 Liabilities held for sale 3.4 - 1,349 Current liabilities 22,300 20,902 Total liabilities 38,728 37,171 Total equity and liabilities 50,641 47,693 107 FINANCIAL STATEMENTS Statement of changes in equity 1 January – 31 December Attributable to owners of ISS A/S (DKKm) Note Share capital Treasury shares Retained earnings Translation reserve Total Non- controlling interests Total equity 2024 Equity at 1 January 185 (66) 11,051 (1,277) 9,893 629 10,522 Net profit - - 2,581 - 2,581 8 2,589 Other comprehensive income 4.1 - - (88) 306 218 133 351 Comprehensive income - - 2,493 306 2,799 141 2,940 Dividends 4.1 - - (425) - (425) - (425) Share-based payments 6.2 - - 93 - 93 - 93 Settlement of vested PSUs/RSUs 4.1 - 79 (79) - - - - Purchase of treasury shares 4.1 - (1,217) - - (1,217) - (1,217) Transactions with owners - (1,138) (411) - (1,549) - (1,549) Changes in equity - (1,138) 2,082 306 1,250 141 1,391 Equity at 31 December 185 (1,204) 13,133 (971) 11,143 770 11,913 2023 Equity at 1 January 185 (185) 11,310 (1,154) 10,156 659 10,815 Net profit - - 279 - 279 46 325 Other comprehensive income 4.1 - - (101) (123) (224) (19) (243) Comprehensive income - - 178 (123) 55 27 82 Dividends 4.1 - - (390) - (390) - (390) Share-based payments 6.2 - - 72 - 72 - 72 Settlement of vested PSUs/RSUs 4.1 - 119 (119) - - - - Non-controlling interests 4.1 - - - - - (57) (57) Transactions with owners - 119 (437) - (318) (57) (375) Changes in equity - 119 (259) (123) (263) (30) (293) Equity at 31 December 185 (66) 11,051 (1,277) 9,893 629 10,522 108 FINANCIAL STATEMENTS Significant events In 2024, the Group’s performance and financial position was particularly affected by the significant events (and transactions) highlighted below. A detailed review of the Group’s performance is provided in the Management’s review on pp. 18-31. France Divestment completed On 22 December 2023, ISS signed an agreement to divest ISS France to Onet SA, a French facility services company. The divestment was completed on 9 April 2024. Net profit generated in ISS France up until the completion of the divestment amounted to DKK (52) million, see the specification in 3.4.1, Discontinued operations. DTAG Arbitration process As previously informed, ISS and Deutsche Telekom (DTAG) have certain contractual disagreements. In December 2022, ISS has initiated the establishment of an Arbitration Tribunal under the German Institute of Arbitration (DIS) to decide on these disagreements. The final oral hearing in the arbitration proceedings is scheduled to take place in mid July 2025. ISS and DTAG have exchanged claims against each other, but the outcome of the proceedings remains uncertain. Management has carefully considered the various aspects of the dispute in making their estimates and judgements, mainly in relation to receivables, provisions and contingent liabilities. See 2.5, Provisions, contingencies, guarantees and commitments for further details. Macroeconomic environment Continued uncertainty The macroeconomic environment continued to be volatile and create uncertainty in 2024. Interest rates increased in the majority of our countries, and inflation remained relatively high, the latter touching certain aspects of our business, such as increasing our cost base, mainly because of increasing minimum wages and collective wage agreements. To mitigate the effect, we continued to utilise the price adjustment mechanisms in our customer contracts. Türkiye also continued to be considered a hyperinflationary economy and eligible for accounting in accordance with IAS 29. In preparing these consolidated financial statements, we considered these impacts when making accounting estimates, most significantly in relation to: Impairment tests, 3.2 Pensions and similar obligations, 7.1 Hyperinflation in Türkiye, 7.2 109 FINANCIAL STATEMENTS Significant estimates and judgements Accounting estimates 1.2Revenue Large and complex IFS contracts: Determining the transaction price, including the impact of scope changes (contract modifications) 2.5Provisions Estimate of future profitability and likely outcomes: Onerous contracts Claims, disputes and legal proceedings 3.2Goodwill and customer contracts Key assumptions applied for the purpose of impairment testing: Recoverable amounts of CGUs 5.2Deferred tax Financial forecasts of future taxable profit impacting recognised deferred tax asset Uncertain tax positions – estimate of the amount required to settle the obligation 7.1Pensions and similar obligations Impact from key assumptions such as salary levels, interest rates, inflation, mortality and guaranteed benefits Accounting judgements 1.2Revenue Large and complex IFS contracts: Assessment of contractual terms and impact on transaction price 2.2Other receivables Transition and mobilisation costs – assessment of capitalisation criteria (generating or enhancing resources to be used in satisfying performance obligations and are expected to be recovered) 2.5Provisions Large and complex IFS contracts – assessment of risks and disputes Onerous contracts – assessment of termination and extension options 2.6Right-of-use assets Lease term – determining whether extension options are reasonably certain to be exercised 3.1Intangible assets Cloud-based arrangements – assessment of control and whether configuration/customisation costs result in an intangible assets Software (owned) – capitalisation of configuration/customisation costs 7.2Hyperinflation in Türkiye Price index – assessment of which approach to apply in calculating the conversion factor when restating for hyperinflation, i.e. average year-to-date or average month-to-date Making judgements, estimates and assumptionsThe preparation of the Group’s consolidated financial state-ments required management to make judgements, estimates and assumptions that affected the reported amounts of assets, liabilities, income and expenses, the accompanying disclo-sures, including contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities in future periods. Estimates and assumptions are reviewed on an ongoing basis and have been prepared taking macroeconomic and geopolit-ical developments into consideration as well as climate-related matters, but still ensuring that one-off effects which are not expected to exist in the long term do not affect estimation and determination of these key factors, including discount rates and expectations for the future. Climate-related matters – no material impact In preparing the Group’s consolidated financial statements, management considered the impact of climate matters and related risks in relation to 1) the going concern assessment; and 2) applying significant estimates and assumptions. This included both transitional risks in the form of increased costs incurred as part of transitioning toward a more sustainable economy, and physical risks due to specific weather events. Generally, we do not believe that our profitability, cash flow generation or asset base is significantly exposed to climate risk, which is based on our general ability to pass on cost increases to customers as evidenced by our relative historic margin stability and on the fact that we are an asset-light operation with low operational investment needs. As a result, it is management’s assessment, that climate-related matters 1) will not have a significant impact on the Group’s going concern assessment, or in the long term (next five years); and 2) did not have a material impact on the Group’s significant accounting estimates and assumptions applied in these consolidated financial statements. 110 FINANCIAL STATEMENTS 1 Operating profit ISS is a leading, global provider of workplace and facility services. With more than 325,000 employees, 40,000 customers and operations in over 60 countries, we have a strong global footprint. The vast majority of our services are delivered on a daily basis by our own locally employed people directly at our customers’ sites in the respective countries. As a result, our business model is decentralised with separate and fully operational subsidiaries in countries with significant business activities (around 30 countries). Given our self-delivery model, our placemakers are our “product” and our most important asset. Thus, the single largest operating cost incurred in generating our revenue is employee costs. In 2024, employee costs comprised 66% of total operating costs and remained at the level of 2023. While goods and services price growth slowed, wage inflation remained high, reaching peak values in some regions. We continued to successfully utilise contractual terms of our customer contracts to implement price increases and/or scope adjustments to mitigate the increasing operating costs. In 2024, revenue was DKK 83,761 million with an organic growth of 6.3% driven by price increases and higher activity levels at customers’ sites. Key accounts accounted for 71% of Group revenue in 2024 (2023: 71%). The majority of revenue is portfolio revenue (recurring), which is contractually committed at the inception of the contract, whereas the remaining revenue, contracts and above-base, is demanded on a non-recurring basis and agreed as separate transactions. In 2024, portfolio revenue accounting for 84% (2023: 84%) of Group revenue. Operating profit before other items was DKK 4,143 million for an operating margin of 4.9%. Excluding the effect from hyperinflation in Türkiye, operating margin was 5.0% (2023: 4.3%). In this section: 1.1 Segments 1.2 Revenue 1.3 Employee costs 1.4 Other income and expenses, net Our revenue base – high level of recurring revenue 83.8 DKKbn 84% Portfolio (recurring) 16% Projects/above-base % of Group revenue Our cost base – self-delivery by our placemakers 79.6 DKKbn 66% Employee costs 22% Other operating expenses 10% Consumables 0 2% Depreciation/amortisation % of total operating costs 111 FINANCIAL STATEMENTS 1.1 Segments 1.1.1 Operating segmentsISS is a leading, global provider of workplace and facility service solutions operating in ~30 countries. Operations and business performance are generally managed based on a geographical structure in which countries are grouped into four regions. These regions make up the Group’s reportable segments. The regions have been identified based on a key principle of grouping countries that share market conditions and cultures. Countries where we do not have a full country-based support structure (global managed services) are combined in a separate segment “Other countries”. An overview of the grouping of countries into regions is presented in 8.4, Group companies. (DKKm) NorthernEurope Central &SouthernEurope Asia &Pacific Americas Othercountries Total segments Unall./IC elim Group 2024 Revenue, excl. IAS 29 31,328 27,159 14,403 9,407 767 83,064 (59) 83,005 Revenue 31,328 27,915 14,403 9,407 767 83,820 (59) 83,761 Employee costs (18,239) (18,686) (9,928) (4,733) (176) (51,762) (1,060) (52,822) Depreciation and amortisation (560) (520) (141) (109) (4) (1,334) (135) (1,469) Operating profit before other items, excl. IAS 29 1,803 1,867 1,032 547 30 5,279 (1,124) 4,155 Operating profit before other items 1,803 1,855 1,032 547 30 5,267 (1,124) 4,143 Operating margin, excl. IAS 29 5.8% 6.9% 7.2% 5.8% 3.9% 6.4% - 5.0% Operating margin 5.8% 6.6% 7.2% 5.8% 3.9% 6.3% - 4.9% Other income and expenses, net 6 (43) (2) (60) - (99) (64) (163) Amortisation/impairment of customer contracts (14) (60) - (17) - (91) - (91) Operating profit 1,795 1,752 1,030 470 30 5,077 (1,188) 3,889 2023 Revenue, excl. IAS 29 29,324 24,807 14,229 9,605 783 78,748 (65) 78,683 Revenue 29,324 24,805 14,229 9,605 783 78,746 (65) 78,681 Employee costs (17,033) (16,388) (10,090) (4,822) (251) (48,584) (1,023) (49,607) Depreciation and amortisation (543) (493) (132) (121) (4) (1,293) (124) (1,417) Operating prof it before other items, excl. IAS 29 1,572 1,487 875 489 48 4,471 (1,123) 3,348 Operating profit before other items 1,572 1,439 875 489 48 4,423 (1,123) 3,300 Operating margin, excl. IAS 29 5.4% 6.0% 6.1% 5.1% 6.1% 5.7% - 4.3% Operating margin 5.4% 5.8% 6.1% 5.1% 6.1% 5.6% - 4.2% Other income and expenses, net - (43) 13 (4) - (34) (59) (93) Amortisation/impairment of customer contracts (13) (37) (2) (17) - (69) - (69) Operating profit 1,559 1,359 886 468 48 4,320 (1,182) 3,138 Revenue – by region 83.8 DKKbn 37% Northern 33% Central & Southern 17% Asia & Pacific 12% Americas 01% Other Operating profit 1) – by region 5.1 DKKbn 35% Northern 35% Central & Southern 20% Asia & Pacific 09% Americas 01% Other 1)Based on total segments 112 FINANCIAL STATEMENTS 1.1 Segments (continued) 1.1.2 Geographical distribution Revenue Non-current assets 1) (DKKm) 2024 2023 2024 2023 UK & Ireland 11,939 10,611 3,251 3,117 Switzerland 7,052 6,383 2,493 2,206 US & Canada 6,870 7,004 2,481 2,368 Türkiye 6,622 4,833 1,929 1,525 Germany 5,713 5,864 1,479 974 Australia & New Zealand 5,279 5,102 1,312 1,343 Spain 5,136 4,460 1,719 1,576 Denmark (country of domicile) 3,224 2,994 1,745 1,730 Other countries 2) 31,926 31,430 11,977 11,754 Total 83,761 78,681 28,386 26,593 1)Excluding deferred tax assets. 2)Including unallocated items and eliminations. For further information, revenue per country is disclosed on p. 31. Revenue – by country 83.8 DKKbn 14%UK & Ireland 08%Switzerland 08%US & Canada 08%Türkiye 07%Germany 06%Australia & NZ 06%Spain 04%Denmark 39%Other Non-current assets – by country 28.4 DKKbn 12%UK & Ireland 09%Switzerland 09%US & Canada 07%Türkiye 05%Germany 04%Australia & NZ 06%Spain 06%Denmark 42%Other Accounting policy The Group’s four reportable segments reflect the geographical and strategic management, decision and reporting structure applied by the Executive Group Management (EGM). The segments are managed by the EGM primarily based on business performance measured by Operating profit. Segment revenue and costs comprise items that are directly attributable to the individual segments. Unallocated items mainly consist of revenue and cost relating to the Group’s corporate functions. Decisions on financing (finance income or finance costs) and tax planning (income tax) are managed at Group level and are therefore not managed and allocated to segments. Segment revenue is presented including internal revenue which due to the nature of the business is insignificant and therefore not disclosed. The geographical distribution of segment revenue and non-current assets is based on the geographical location of the individual subsidiary rendering the service. Significant countries are defined as countries representing more than 5% of Group revenue as well as the domicile country, Denmark. No customer comprises more than 10% of Group revenue. 113 FINANCIAL STATEMENTS 1.2 Revenue The Group’s revenue is generated from rendering of workplace and facility service solutions to more than 40,000 customers. Our services are provided on a daily basis at our customers sites, largely by our own employees (placemakers) given our self-delivery business model. Subcontractors are only used to a limited extent and primarily for delivery of highly specialised services (e.g. within technical) and/or infrequently delivered services. The vast majority of our revenue is portfolio revenue 84% (2023: 84%), which means that revenue is contractually agreed (committed) with the customer at contract inception. With initial contract terms typically of 3-5 years, this revenue base offers a relatively high stability and predictability. The remaining part of our revenue is non-recurring (not committed) in the form of projects and above-base work (e.g. capital projects, events, etc.), which is demanded on a non-recurring basis and agreed separately with the customer. Start-up of new key account contracts often requires ISS to in-cur significant transition and mobilisation costs (costs to fulfil a contract) before service delivery commences in order to be able to fulfil the performance obligations under the contracts. Capitalised transition and mobilisation costs are presented in 2.2, Other receivables. 1.2.1 Commercial modelsOur contracts are individually negotiated with each customer based on their specific needs. Despite individuality in contracts, we do however generally operate based on variations of the following three commercial models: 1) Fixed price contracts; 2) Cost-plus contracts; and 3) Cost-plus variations (typically capped) Determining the transaction price varies depending on the model as described in Accounting policies. However, they all include mechanisms to adjust prices due to a) inflation and regulatory changes and b) scope changes. These contractual mechanisms, along with strong and well-embedded processes for implementing such adjustments, are essential in mitigating the risk of contracts becoming onerous due to e.g. changing customer needs, macroeconomic or regulatory events etc. 1.2.2 DisaggregationAligned with our strategy, we disaggregate revenue from con-tracts with customers based on: Revenue base (portfolio vs. projects and above-base) Customer category Customer segment Core services The distribution of revenue among our portfolio and above-base, customer category, customer segment and services within the re-gions is largely the same as the overall distribution for the Group. However, in Americas, the share of food services is relatively higher and healthcare significantly lower than compared to the rest of the Group. The overview on the next page illustrates the relationship be-tween disaggregation of revenue and revenue per reportable segments. Accounting estimates & judgements Due to our strategic focus on key accounts, our customer base contains a number of large and complex IFS contracts in terms of determining the transaction price, including the impact of scope changes (contract modifications). Management makes detailed assessments of the contractual terms and on that basis estimates the amount of revenue expected to be received based on services delivered, including an assessment of the probability of such amount being reversed subsequently. For large and global complex contracts, the outcome may vary significantly, should the judgements and assumptions applied by management in their assessments not be realised as expected. Portfolio and above-base 83.8 DKKbn 84%Portfolio 16%Projects and above-base Customer category 83.8 DKKbn 71%Key accounts 24%Large and medium 05%Small and route-based Customer segments 83.8 DKKbn 40%Office-based 23%Production-based 14%Healthcare 23%Other Core services 83.8 DKKbn 42%Cleaning 23%Technical 15%Food 20%Other 114 FINANCIAL STATEMENTS 1.2 Revenue (continued) Disaggregation of revenue 2024 (DKKm) NorthernEurope % Central & Southern Europe % Asia &Pacific % Ameri-cas % Othercoun-tries Unall./ IC elim. Total % Revenue base Portfolio 25,189 80% 23,574 84% 12,998 90% 7,795 83% 513 (43) 70,026 84% Projects and above-base work 6,139 20% 4,341 16% 1,405 10% 1,612 17% 254 (16) 13,735 16% Total 31,328 100% 27,915 100% 14,403 100% 9,407 100% 767 (59) 83,761 100% Customer category Key accounts 22,694 73% 18,134 65% 10,299 72% 7,433 79% 759 (57) 59,262 71% Large and medium 6,688 21% 8,425 30% 3,235 22% 1,958 21% - - 20,306 24% Small and route-based 1,946 6% 1,356 5% 869 6% 16 0% 8 (2) 4,193 5% Total 31,328 100% 27,915 100% 14,403 100% 9,407 100% 767 (59) 83,761 100% Customer segments Office-based 13,436 43% 11,096 40% 4,465 31% 3,951 42% 378 (53) 33,273 40% Production-based 6,209 20% 6,057 22% 3,245 22% 3,397 36% 354 (6) 19,256 23% Healthcare 4,693 15% 4,291 15% 3,112 22% 103 1% - - 12,199 14% Other 6,990 22% 6,471 23% 3,581 25% 1,956 21% 35 - 19,033 23% Total 31,328 100% 27,915 100% 14,403 100% 9,407 100% 767 (59) 83,761 100% Core services Cleaning 13,090 42% 12,697 45% 6,808 47% 2,253 24% 102 (23) 34,927 42% Technical 7,408 24% 8,241 30% 1,157 8% 2,487 26% 140 (20) 19,413 23% Food 5,720 18% 2,554 9% 1,234 9% 3,436 37% 57 (7) 12,994 15% Other 5,110 16% 4,423 16% 5,204 36% 1,231 13% 468 (9) 16,427 20% Total 31,328 100% 27,915 100% 14,403 100% 9,407 100% 767 (59) 83,761 100% 2023 (DKKm) NorthernEurope % Central & Southern Europe % Asia &Pacific % Ameri-cas % Othercoun-tries Unall./ IC elim. Total % Revenue base Portfolio 23,731 81% 20,426 82% 12,585 88% 8,484 88% 525 (41) 65,710 84% Projects and above-base work 5,593 19% 4,379 18% 1,644 12% 1,121 12% 258 (24) 12,971 16% Total 29,324 100% 24,805 100% 14,229 100% 9,605 100% 783 (65) 78,681 100% Customer categroy Key accounts 20,690 70% 16,995 68% 10,182 72% 7,660 80% 772 (46) 56,253 71% Large and medium 6,631 23% 6,918 28% 3,187 22% 1,926 20% - (17) 18,645 24% Small and route-based 2,003 7% 892 4% 860 6% 19 0% 11 (2) 3,783 5% Total 29,324 100% 24,805 100% 14,229 100% 9,605 100% 783 (65) 78,681 100% Customer segments Office-based 12,052 41% 9,991 40% 4,424 31% 3,822 40% 442 (62) 30,669 39% Production-based 5,957 20% 5,742 23% 3,349 23% 3,578 37% 283 (3) 18,906 24% Healthcare 4,496 16% 3,290 13% 3,074 22% 91 1% - - 10,951 14% Other 6,819 23% 5,782 24% 3,382 24% 2,114 22% 58 - 18,155 23% Total 29,324 100% 24,805 100% 14,229 100% 9,605 100% 783 (65) 78,681 100% Core services Cleaning 12,535 43% 10,930 44% 7,277 51% 2,285 24% 186 (48) 33,165 42% Technical 6,735 23% 7,861 32% 1,229 9% 2,310 24% 152 (2) 18,285 23% Food 5,250 18% 2,007 8% 1,165 8% 3,532 37% 51 (14) 11,991 15% Workplace, incl. Other 4,804 16% 4,007 16% 4,558 32% 1,478 15% 394 (1) 15,240 20% Total 29,324 100% 24,805 100% 14,229 100% 9,605 100% 783 (65) 78,681 100% 115 FINANCIAL STATEMENTS 1.2 Revenue (continued) Accounting policy Transaction priceOur customer contracts are based on three commercial models: 1) Fixed price contracts; 2) Cost-plus contracts; and 3) Cost-plus variations (typically capped) All three models include mechanisms to adjust the transaction price for a) inflation and regulatory changes and b) scope changes (contract modifications). Inflation and regulatory adjustments are typically implemented annually based on the actual development in salaries/minimum wages or cost of consumables (e.g. food) based on changes to a price index. Scope changes regularly occur, particularly for key account customers, to ensure that service solutions reflect our customers’ current needs. Such modifications are generally agreed with the customer in advance as per a specified change management procedure in the contract. In addition to these general adjustment mechanisms applicable for all commercial models, the differences between models in determining the transaction price are highlighted below. For fixed price contractsthe transaction price stated in the contract is based on a fixed amount for the agreed services. For cost-plus contractsthe transaction price is determined based on actual costs incurred with the addition of an agreed markup/management fee. In addition, the transaction price may include a variable consideration element determined based on achievement of certain defined key performance indicators (KPIs). Variable consideration is assessed on a contract-by-contract basis on a recurring basis in alignment with the customer, and is measured based on the most likely amount management expects ISS to be entitled to. For cost-plus variations, determining the transaction price is similar to the cost-plus (including variable consideration), however typically with a cap, i.e. if ISS’s actual costs exceed a guaranteed maximum price (GMP), the consideration is reduced to the GMP. Determining the transaction price requires assessment of which costs may be included in the calculation basis and if relevant, whether within the capped maximum. RecognitionRevenue from contracts with customers is recognised when control of the services is transferred to the customer. Control is transferred over time as the customer simultaneously receives and consumes the benefits provided by the Group. Revenue is recognised based on the actual services provided in the reporting period as a proportion of the total services to be provided. This is determined based on the actual labour hours and costs expensed relative to the total expected labour hours and costs to complete the service. Estimates of labour hours and costs or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by management. Contract modifications are accounted for going forward with no impact on recognised revenue up to the date of modification. Variable consideration is recognised as services are performed to the extent that it is highly probable that the amount will not be subject to significant reversal. Customers are invoiced on a monthly basis in accordance with contractual terms, and payment terms are agreed on an individual basis. Gross or net presentationOur strategy and business model are based on delivery of integrated facility services (IFS) to our customers with ISS carrying the responsibility and risks related to the services provided. The Group has generally concluded that it is the principal in its revenue arrangements, and consequently as a main rule recognises revenue on a gross basis. In arrangements where ISS uses subcontractors, the Group assesses on a contract-by-contract basis, whether ISS is the principal or ISS is acting as the agent. The assessment is based on whether ISS controls the services before transferring them to the customer. Typically, when the Group has concluded that ISS controls the services and is the principal, ISS: 1) engages with the customer before and after the services are provided, and takes the responsibility for fulfilment of services according to the contract; 2) has discretion in establishing the price for the agreed services; 3) selects and engages with the subcontractor; and 4) agrees changes to services directly with the customer. 1.2.3 Revenue backlogOur revenue base consists of a mix of yearly contracts, which are renewed tacitly, and thousands of multi-year contracts, the majority of which have an initial term of 3-5 years. Contracts regularly include options for the customer to terminate for convenience within 3-9 months. However, both for key accounts and others, we maintain a high retention rate of 93%, support-ing that these options are rarely exercised. The vast majority of our revenue is portfolio revenue, see 1.2, Revenue. The remaining part is non-recurring in the form of projects and above-base work (not committed) and thus, excluded from the revenue backlog. In addition, the Group has excluded contracts with a term of less than 12 months and contracts where the Group invoices a fixed amount for each hour of service provided. As a result, the amounts disclosed in the maturity table is sig-nificantly lower than reported revenue and will likely not reflect the degree of certainty in future revenue (and cash inflows) to the Group. Therefore, as a supplement, in the management review, p. 20, a maturity overview for our largest key accounts (> DKK 200 million of annual revenue) is presented. (DKKm) 2024 2023 < 1 year 23,510 35% 20,793 33% 1-5 years 36,182 54% 35,356 56% > 5 years 7,553 11% 7,463 11% Total 67,245 100% 63,612 100% 116 FINANCIAL STATEMENTS 1.3 Employee costs (DKKm) Note 2024 2023 Wages and salaries 42,716 39,992 Social security costs 8,525 8,141 Pensions 7.1 1,488 1,402 Share-based payments 6.2 93 72 Total 52,822 49,607 Average number of employees 1) 327,767 334,962 1)Excluding France. Our strategy is based on self-delivery of our services by our placemakers. They are our key resource and fundamental to our value creation. Our business model is asset-light and therefore employee costs is our single largest cost category. In 2024, employee costs comprised 66% of the total operating costs (2023: 66%). Government grants In 2024, the Group recognised government grants of DKK 178 million (2023: DKK 184 million) in the form of wage subventions, which have been recognised as a reduction of employee costs. The grants compensated the Group primarily for social security, wage increases as well as for employing certain categories of employees such as trainees, disabled persons, long-term unemployed and employees in certain age groups. 1.4 Other income and expenses, net (DKKm) 2024 2023 Gain on divestments 9 14 Other income 9 14 Loss on divestments (64) (32) Acquisition and integration costs (32) (16) Other (76) (59) Other expenses (172) (107) Other income and expenses, net (163) (93) Loss on divestmentsmainly related to an adjustment of the deferred consideration for the Specialized Services business in the US, which was divested in 2021. In 2023, the loss mainly related to divestments in Spain. Acquisition and integration costsrelated to the Group’s acqui-sitions in Spain, Switzerland and Austria. Of the total amount, DKK 10 million was acquisition costs (2023: DKK 8 million). Othercomprised mainly remeasurement of the contingent consideration related to the transaction in Türkiye in 2021. Accounting policy Other income and expenses, net consists of recurring and non-recurring items that management does not consider to be part of the Group’s ordinary operating activities, i.e. divestment gains and losses, remeasurement of disposal groups classified as held for sale, the winding-up of operations, disposal of property as well as acquisition and integration costs. Other income and expenses, net are presented separately from the Group’s ordinary operating activities as management believes that this best reflects the Group’s financial performance. 117 FINANCIAL STATEMENTS 2 Operating assets, liabilities and free cash flow Our ability to continuously manage our working capital is essential to securing the liquidity required to operate, grow and improve our business as well as to drive strong cash flows for the benefit of our shareholders. Driving strong cash flows remained a key priority for ISS in 2024 and our free cash flow increased to DKK 2.0 billion (2023: DKK 1.8 billion) compared to last year. This was mainly due to improved operating profit performance and continued tight management of working capital, despite high revenue growth. Our focus on the development in trade receivables continued, especially overdue and unbilled receivables. Despite increased trade receivables, the ageing profile remained strong with 90% of receivables, gross in the not past due category (2023: 88%). ISS is a people business operating based on an asset-light business model. Our model is mainly based on leasing, rather than owning property, vehicles and equipment. In 2024, investments in property and equipment (including right-of-use assets) remained low and comprised 1.7% of Group revenue (2023: 1.5%) reflecting our asset-light business model. In this section: 2 .1 Trade receivables and credit risk 2 .2 Other receivables 2 .3 Other liabilities 2 .4 Changes in working capital 2 .5 Provisions, contingencies, guarantees and commitments 2 .6 Right-of-use assets, property and equipment 2 .7 Free cash flow Asset-light business model 50.6 DKKbn 7% Fixed assets, incl. right-of-use % of total assets Free cash flow DKKbn Free cash flow (non-IFRS) 1) From continuing operations Trade receivables DKKbn % Trade receivables (DKKbn) Not past due, % 118 FINANCIAL STATEMENTS 2.1 Trade receivables and credit risk (DKKm) Gross Expected credit losses Carrying amount 2024 Central & Southern Europe 5,371 (45) 5,326 Northern Europe 3,879 (67) 3,812 Asia & Pacific 2,113 (30) 2,083 Americas 1,105 (12) 1,093 Other countries 135 - 135 Total 12,603 (154) 12,449 Not past due 11,285 (4) 11,281 Past due 1 to 60 days 754 (6) 748 Past due 61 to 180 days 120 (11) 109 Past due 181 to 360 days 89 (37) 52 More than 360 days 355 (96) 259 Total 12,603 (154) 12,449 2023 Central & Southern Europe 4,481 (30) 4,451 Northern Europe 3,632 (59) 3,573 Asia & Pacific 2,072 (30) 2,042 Americas 1,194 (8) 1,186 Other countries 102 - 102 Total 11,481 (127) 11,354 Not past due 10,148 (1) 10,147 Past due 1 to 60 days 878 (2) 876 Past due 61 to 180 days 220 (40) 180 Past due 181 to 360 days 113 (28) 85 More than 360 days 122 (56) 66 Total 11,481 (127) 11,354 Development in 2024 In 2024, trade receivables increased to DKK 12,449 million (2023: DKK 11,354 million) generally as a result of organic growth driven by price increases and higher activity levels at customer sites across the Group as well as acquisitions in Switzerland and Spain. In addition, the increase was driven by Türkiye, where payment cycles are longer than Group average, and by adverse timing effects of certain payments relating to the contractual dispute with Deutsche Telekom. Commercial use of factoring with certain large key account customers and participation in certain customers’ supply chain finance arrangements was DKK 1.53 billion (2023: DKK 1.45 billion) at 31 December 2024. The development reflected in-creasing revenue from key account customers, where invoices, as per the Group’s factoring policy, are eligible for factoring. Expected credit losses comprised 1.2% (2023: 1.1%) of trade receivables (gross) and trade receivables not past due was 90% of trade receivables (gross) (2023: 88%). Expected credit losses (DKKm) 2024 2023 At 1 January (127) (124) FX adjustments (2) 4 Acquisitions (18) (5) Additions (68) (86) Unused amounts reversed 40 52 Unrecoverable amounts written off 21 18 Reclass to Assets held for sale - 14 At 31 December (154) (127) Credit risk – low exposure The Group’s exposure to credit risk is inherently low due to its business model and strategic choices leading to a diversified customer portfolio, both in terms of geography, industry sector, customer size and services. Risk management Exposure to credit risk and expected credit losses are managed locally in the operating entities. We have a strong ongoing assessment and monitoring of customers’ creditworthiness and the credit limits are set as deemed appropriate taking into account the customer’s financial position and the current market conditions. In 2024, we continued to manage inflation tightly through price increases. The vast majority of cost increases were passed on to customers as per the agreed contractual terms with no increase in credit losses. Generally, the Group does not hold collateral as security for trade receivables. Accounting policy Tradereceivablescomprise invoiced and unbilled revenue. Unbilled revenue represents service deliveries where the performance obligation has been fulfilled, but not yet invoiced. Trade receivables are recognised at the invoiced amount less expected credit losses, which equals amortised costs due to their short-term nature. The Group applies the simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. The expected loss rates are calculated based on days past due for grouping of customers with similar loss patterns, e.g. geographical region, industry sector and customer rating. The historical loss rates are adjusted to reflect current and forecasts of future economic conditions on macroeconomic factors affecting the ability of the customers to settle the receivables. Trade receivables are generally written off if they are past due more than 180 days or when there is no reasonable expectation of recovery. Write-offs are presented in Other operating expenses. Subsequent recovery or reversal of expected credit losses are credited against the same line item. Factoringand participation in customers’ supply chain finance arrangements (together referred to as factoring) are mainly used to optimise cash collection and to finance working capital impacts related to growth with certain key account customers, including from general pressure for longer payment terms and necessary investments in transition and mobilisation of such contracts. Trade receivables subject to factoring are derecognised when the derecognition criteria are met and the substantial risks and rewards are transferred to the factor. Once the trade receivables are derecognised, the Group does not carry any risk and has no continuing involvement in these. 119 FINANCIAL STATEMENTS 2.2 Other receivables (DKKm) 2024 2023 Supplier rebates and bonuses 531 434 Prepayments to suppliers 357 379 Securities 140 117 Sign-on fees 132 98 Receivable divestment proceeds 70 114 Government grants 69 23 Transition and mobilisation costs 44 42 Derivatives 51 24 Other 327 397 Total 1,721 1,628 Supplier rebates and bonusescomprised volume-related supplier discounts and reflects the Group’s continued efforts to minimise the number of suppliers and drive synergies and cost savings. Prepayments to supplierscomprised various payments mainly related to IT licences, utilities and insurance. Securitiesrelated to a savings plan in the US administered by ISS on behalf of certain senior employees. Sign-on feescomprised upfront discounts to certain large customers incurred in the normal course of business, most significantly in the UK, Australia and the US and on certain glob-al key accounts. Receivable divestment proceedsmainly related to the divestment of Specialized Services in the US, where part of the consideration is deferred. Government grantsrelated to wage subventions mainly in Singapore and Spain. Accounting judgements Transition and mobilisation costs(costs to fulfil a contract) comprise costs directly related to start-up of operations of certain large long-term contracts, such as transfer of employees from previous suppliers, site due diligence, planning and developing service plans. The costs include internal direct costs and external costs e.g. to consultants. Capitalisation of transition and mobilisation costs involves management’s judgement to assess if the criteria for capitalisation are fulfilled, including determining if the costs relate directly to the contract, generate resources that will be used in satisfying the performance obligations, and are expected to be recovered, i.e. reflected in the pricing of the contracts. Bid-related costs, including costs relating to sales work and securing contracts, are expensed as incurred. Transition and mobilisation costscomprised costs to fulfil the performance obligation under certain large long-term contracts. At 31 December 2024, capitalised transition and mobilisation costs amounted to DKK 44 million (2023: DKK 42 million). The increase in 2024 was due to mobilisation activities for the startup of Defra in the UK and the Danish Building and Property Agency in Denmark, partly offset by ordinary amortisation. Othercomprised refunds from customers, accrued interest, VAT, employee-related taxes and other recoverable amounts. Accounting policy Other receivables comprise various items of different nature and thus different measurement methods are applied. As these items are considered individually immaterial, they are presented together as Other receivables. Except for the items described below, other receivables are recognised initially at cost and subsequently at amortised cost. Due to the short-term nature of other receivables, amortised cost will equal the cost. Sign-on feesand transition and mobilisation costsare capitalised and amortised over the initial secured contract term consistent with ISS’s transfer of the related services to the customer. Securitiesand derivativesare measured at fair value with fair value adjustments being recognised in profit or loss. The fair value of derivatives is presented in Other receivables when the fair value is positive and in Other liabilities when the fair value is negative. 2.3 Other liabilities (DKKm) 2024 2023 Accrued wages, pensions, holiday allowances and social security 5,642 5,181 Tax withholdings, VAT etc. 1,813 1,778 Prepayments from customers 1,110 989 Contingent consideration and deferred payments 227 29 Accrued interests 175 96 Savings plan 140 117 Derivatives 19 63 Other 379 229 Total 9,505 8,482 In 2024, other liabilities increased DKK 1,023 million mainly due to higher activity levels and inflation leading to higher accruals for wages, pensions, holiday allowances and social security of DKK 461 million. Furthermore, contingent consideration and deferred payments increased DKK 198 million mainly related to the divestment of ISS France, where part of the consideration is deferred up to three years from the divestment date, see 3.4, Discontinued operations and divestments. Savings planrelated to a plan in the US under which ISS has invested in securities, see 2.2, Other receivables. The plan is administered by ISS on behalf of certain senior employees. Othercomprised customer discounts, etc. 2.4 Changes in working capital (DKKm) 2024 2023 Changes in inventories (14) (24) Changes in receivables (1,014) (800) Changes in payables 533 1,020 Total (495) 196 120 FINANCIAL STATEMENTS 2.5 Provisions, contingencies, guarantees and commitments ISS is exposed to various risks and uncertainties, and party to certain disputes, claims, investigations and legal proceedings arising out of the normal conduct of its business. These are mainly within: Commercial/contractual matters Labour-related Divestments and M&A Tax/social regulations Provisions are recognised in relation to such obligations for probable losses that management deems reasonable and appropriate at 31 December 2024 as reflected in the table to the right. In addition, ISS is exposed to possible obligations in relation hereto, see 2.5.2, Contingencies. 2.5.1 ProvisionsLegal claims and disputesThe provision primarily relates to labour-related claims and dis-putes regarding wages, overtime, holiday, pensions, severance etc., claims and disputes in relation to contractual disagree-ments with customers and suppliers as well as sales and service tax disputes. In addition, the provision includes claims and disputes associated with our divestment activities. Such claims and disputes arise out of the normal conduct of busi-ness. In 2024, the decrease was primarily due to payments for a divestment-related dispute in the US and for the VAT dispute on canteen services in Norway as well as settlement of various labour-related disputes in the ordinary course of business. At 31 December 2024, the remaining provision predominantly concerned Spain, Türkiye, and Norway. Self-insurance The provision mainly relates to employers’ liability and/or workers compensation in certain countries and covers claims by employees for medical benefits and lost wages associated with injuries/illness incurred in the course of their employment. Listed below are the relevant countries, including self-insurance limits: Hong Kong:DKK 27.6m, yearly (2023: DKK 25.9m) UK:DKK 27.0m, yearly aggregated limit (2023: DKK 25.7m) and DKK 4.5m per claim (2023: DKK 4.3m) Australia:DKK 4.5m per claim (2023: DKK 4.6m) US:DKK 3.6m per claim (2023: DKK 3.4m) The provision also includes obligations not covered by the global general business liability insurance in relation to damage caused in the ordinary course of service delivery, e.g. property damage and bodily injury. The Group is self-insured for claims below DKK 7.5 million (EUR 1 million per claim). Restructurings The provision mainly relates to restructuring projects conduct-ed in the ordinary course of our business to ensure continuous optimisation and adjustment of our cost base involving mainly overhead reductions, including termination of employees. In 2024, payments mainly related to severance costs in Germany following the OneISS strategic review in late 2023. Onerous contracts The provision covers unavoidable costs for certain loss-making contracts. In 2024, we continued to manage inflation through price increases and cost efficiencies. As a result, we did not identify any significant new onerous contracts or increased provision for contracts already recognised as onerous. Other The provision comprises various other risks and obligations inci-dental to our business, most significantly related to customer and contract-related risks and disputes, acquisitions, divestments and decommissioning liabilities. In 2024, the provision increased to DKK 238 million (2023: DKK 225 million) mainly due to indemnities granted by ISS in connection with the divestment of ISS France. This was offset by utilisations (payments) related to customer disputes and contract-related risks. At 31 December 2024, the provision mainly related to risks and disputes related to customer contracts and divestments in Germany, France and the US. (DKKm) Legal claims and disputes Self-insurance Restruc-turings Onerous contracts Other Total 2024 At 1 January 162 263 76 26 225 752 FX adjustments - 21 - - 6 27 Profit or loss impact: Additions 54 296 - 13 3 366 Unused amounts reversed (33) (40) - (13) (1) (87) Used during the year (payment) (88) (299) (73) (3) (59) (522) Acquisitions - 1 - 2 - 3 Reclass (to)/from other liabilities - - - - 64 64 At 31 December 95 242 3 25 238 603 Non-current 29 139 1 10 193 372 Current 66 103 2 15 45 231 2023 At 1 January 268 245 71 77 410 1,071 FX adjustments - (8) - (1) (2) (11) Profit or loss impact: Additions 70 198 160 14 10 452 Unused amounts reversed (76) (32) - (19) (138) (265) Used during the year (payment) (140) (203) (150) (28) (41) (562) Acquisitions - 3 - 4 - 7 Reclass to Liabilities held for sale (48) - - - - (48) Reclass (to)/from other liabilities 88 60 (5) (21) (14) 108 At 31 December 162 263 76 26 225 752 Non-current 78 154 1 5 149 387 Current 84 109 75 21 76 365 121 FINANCIAL STATEMENTS 2.5 Provisions, contingencies, guarantees and commitments (continued) 2.5.2 ContingenciesISS is party to pending disputes, claims, investigations and litigations arising out of the normal conduct of its business and is therefore exposed to possible obligations. Management be-lieves that these will not have a material impact on the Group’s financial position beyond the assets and liabilities recognised in the statement of financial position at 31 December 2024. However, the existence of such possible obligations will only be confirmed by the occurrence of future events, not entirely with-in ISS’s control. Due to the inherent uncertainty, future events may lead to material adverse effects on the Group’s profit or loss, financial position and cash flows from one or more of these possible obligations. Contractual disagreements Contractual disagreements with customers arise on a recurring basis in the ordinary course of ISS’s business. While most are resolved as part of the daily contract management procedures, in some cases the contractual disagreements will lead to legal proceedings. The Group is currently party to certain disputes and legal proceedings, including in relation to the contract with Deutsche Telekom (DTAG). As previously informed, ISS has initiated the establishment of an Arbitration Tribunal under the German Institute of Arbitration (DIS) to decide on the contractual disa-greements between ISS and DTAG. The final oral hearing in the arbitration proceedings is scheduled to take place in mid July 2025. In the proceedings, ISS and DTAG have exchanged claims against each other. ISS has claimed remuneration for services performed. DTAG has disputed the claims and is withholding certain payments to ISS related to the services delivered. The outcome of the proceedings remains uncertain. Management believes that this would not have a material impact on the Group’s financial position beyond the assets and liabilities already recognised at 31 December 2024. Labour-related risks Being a people company operating across different geogra-phies and service areas exposes us to varying and changing la-bour laws, including regulations on pension schemes. Although we have policies and procedures in place to ensure that we comply with current regulations, interpretations and proce-dures applied by ISS could be challenged in certain jurisdictions and result in disputes and possibly liabilities. The Group is currently party to certain labour-related claims, disputes and legal proceedings, e.g. around wages, overtime, holiday and severance. Additionally, the Group is aware of certain legal rulings implying that practices applied by ISS could potentially be challenged and possibly lead to liabilities in the future. Management believes that these would not have a material impact on the Group’s financial position beyond the assets and liabilities already recognised at 31 December 2024. Divestments The Group makes provisions for claims from purchasers or oth-er parties in connection with divestments and the representa-tions and warranties given in relation to such divestments. In addition, the Group’s divestment activities can give rise to possible obligations, mainly labour-related, including pension plans, and disputes regarding sales price. Restructurings Restructuring projects are being undertaken on an ongoing basis across different geographies and service areas. Labour laws especially in Europe include restrictions on dismissals and procedural rules to be followed. The procedures applied by ISS could be challenged in certain jurisdictions resulting in disputes and possibly liabilities. Management believes that this would not have a material impact on the Group’s financial position beyond the assets and liabilities already recognised at 31 December 2024. Sales and consumption tax disputes Being a global company operating in various jurisdictions ex-poses us to varying and changing laws and regulations, includ-ing interpretations from authorities on sales and consumption taxes. Although we have policies and procedures in place to ensure that we comply with current regulations, interpretations and procedures applied by ISS could be challenged in certain jurisdictions and result in disputes and possibly liabilities and future cash outflows. The Group is currently party to certain dis-putes, mainly in relation to VAT on canteen services in Norway. Accounting estimates & judgements Due to our strategic focus on key accounts, our customer base contains a number of large complex contracts in terms of performance obligations towards our customers. The size and complexity of such contracts requires ISS to incur significant transition and mobilisation costs before service delivery commences to enable fulfilment of the performance obligations. Furthermore, complex restructuring projects may need to be initiated and recognised as provisions. Onerous contractsManagement assesses whether contracts may be onerous by estimating the expected future profitability. This involves estimating total contract revenue and the unavoidable costs of meeting the performance obligations under the contract, including any transition and mobilisation costs incurred. In estimating the future profitability, management makes judgements, including in relation to termination and extension options. Certain contracts are large, complex and longer-term facility service partnerships. When estimating unavoidable costs for such contracts, management makes assumptions around future costs taking expected optimisations and efficiency gains from improvement initiatives into consideration. While ISS has inherent risk in this respect, ISS is by nature also dependent on aligning interests with the customer within the framework of the agreement for the benefit of both parties. The outcome may vary significantly should the assumptions and judgements applied not be realised as expected by management and applied as basis for their assessment of whether a contract is onerous. RestructuringsandOtherprovisions Management makes judgements related to various other matters and obligations, primarily relating to planned/initiated restructurings, and complex customer and contract-related risks and disputes, including ongoing lawsuits. Management’s assessment of the likely outcome of lawsuits, etc., is based on external legal assistance and established precedents. For large, complex contracts, the outcome may vary significantly should the judgements and assumptions applied by management in their assessment of the risks and disputes not be realised as expected. 122 FINANCIAL STATEMENTS 2.5 Provisions, contingencies, guarantees and commitments (continued) 2.5.3 GuaranteesISS has issued certain guarantees in the normal course of business. (DKKm) 2024 2023 Bank-guaranteed performance bonds 1,955 1,845 Other performance bonds 6,696 4,824 Performance guarantees (service contracts) 8,651 6,669 Indemnity and guarantee commitments 546 575 Performance guarantees ISS regularly issues performance guarantees to customers to guarantee satisfactory completion of work in accordance with the service contract. Such guarantees are issued in the ordinary course of business, either in the form of bank guarantees, parent guarantees or insurances. In 2024, other performance bonds increased mainly due to a new customer contract in the UK. Indemnity and guarantee commitments Other guarantees are mainly issued to insurance companies towards self-insurance liabilities as well as to owners of rental property occupied by ISS in certain countries. Furthermore, in a few instances guarantees have been issued to public authori-ties towards tax withholding liabilities. 2.5.4 CommitmentsThe Group has entered into various contractual agreements under which the Group is obligated to pay a continued fee in the short to long term. (DKKm) 2024 2023 License agreements 725 792 Leases 12 60 Purchase obligations, suppliers and subcontractors 57 44 Total not recognised 794 896 Non-current 556 673 Current 238 223 License agreements comprise multi-year software license agreements with non-cancellable obligations to pay future license fees. The majority relates to an enterprise agreement of a suite of office-related productivity and security software. Leasesrelates to various contracts not yet commenced at 31 December, but entailing obligations for future lease payments. Furthermore, the Group has entered into contracts with a limited number of suppliers and subcontractorsthat contain future purchase obligations. Accounting policy Provisions Provisions are recognised at the estimated costs when the Group, as a result of a past event, has a present legal or constructive obligation, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses. The estimated amount is discounted using the Group’s average borrowing rate, if this significantly impacts the measurement of the liability.Provisions are recognised for: Legal claims and disputes, e.g. lawsuits and other disputes, based on external legal assistance and established precedents. Self-insuranceon employers’ liability and/or workers compensation based on valuations from external actuaries. Restructurings when a detailed, formal restructuring plan is announced to the affected parties on or before the reporting date. The plan must identify the business concerned, the location and number of employees affected, and include a detailed estimate of costs as well as a timeline. Onerous contracts, when the unavoidable costs, including directly allocated overhead costs, of meeting the obligations under the contract exceed the economic benefits expected to be received under it, corresponding to the lower of the costs to fulfil the obligations under the contract and the costs of exiting. Customer and contract-related disputes(presented in “Other” provisions) based on an assessment of available facts and circumstances in respect of the specific risks or disputes, when it is deemed that a contractual, non-contractual or constructive obligation exists, and it is probable that this will lead to an outflow of economic resources from the Group. Decommissioning liability(presented in “Other” provisions) if the Group has a legal obligation to dismantle or remove an asset or restore a site or leased facilities (right-of-use assets) when vacated. The present value of the obligation is included in the cost of the relevant asset and depreciated accordingly. The estimated future costs and applied discount rate are reviewed annually and any changes are included in the cost of the asset. Contingencies and commitments Contingent liabilitiesare possible obligations whose existence will be confirmed by the occurrence or non-occurrence of future events. An obligation may also be contingent if the amount cannot be estimated reliably or settlement is not probable. Contingent assetsare possible assets whose existence will be confirmed by the occurrence or non-occurrence of uncertain future events that are not wholly within the control of the entity. Commitmentsare the Group’s promise resulting from a contractual agreement to assume a future obligation for a future delivery. Contingent assets, liabilities and commitments do not represent a present legal or constructive obligation. Thus, they are not recognised, but disclosed in the notes. 123 FINANCIAL STATEMENTS 2.6 Right-of-use assets, property and equipment 2.6.1 Right-of-use assetsAt 31 December 2024, ISS was party to around 18,600 (2023: 17,500) lease agreements of which the majority related to vehicles. In terms of value, the main part related to property leases which generally fall in two categories: HQ office leases (Group headquarters in Søborg as well as HQ buildings and regional offices in each ISS Country) Customer-specific property leases (offices, storage etc.) In 2024, additions were DKK 1,077 million (2023: DKK 908 million). The increase was primarily attributable to new vehicle leases driven by lease cycle renewals, particularly in Germany, the UK, Belgium & Luxemburg and Finland. Also, new or extended property leases contributed, mainly in Finland and Sweden. Lease-related costs recognised in profit or loss (DKKm) 2024 2023 Depreciation of right-of-use assets 916 879 Leases of low-value assets 120 138 Short-term leases 104 49 Variable lease payments 8 7 Other operating expenses 1,148 1,073 Interest expenses on lease liabilities 154 121 Finance costs 154 121 Hereof cash outflow 386 315 Lease liabilities In 2024, total cash outflow for leases was DKK 1,349 million (2023: DKK 1,106 million). For the carrying amount of lease liabilities and maturity, see 4.2.1, Borrowings and 4.5.1, Financial liabilities, respectively. Leases not yet commencedFor the amount of leases not yet commenced is disclosed in 2.5.4, Commitments. Right-of-use assets 2.4 DKKbn 44%Properties 39%Vehicles 17%Other 2.6.2 Property and equipmentComprise mainly vehicles, production equipment and leasehold improvements. In 2024, additions of DKK 355 million (2023: DKK 394 million) primarily related to equipment for new and existing contracts, and leasehold improvements. Right-of-use-assets Property, and equipment (DKKm) Properties Vehicles Other Total 2024 Carrying amount at 1 January 1,116 691 393 2,200 926 FX adjustments 3 (3) (16) (16) (7) Hyperinflation restatement 2 13 54 69 42 Additions 320 612 145 1,077 355 Acquisitions/divestments, net 5 3 2 10 32 Disposals - - - - (11) Depreciation (376) (376) (164) (916) (329) Reclass - - - - (10) Carrying amount at 31 December 1,070 940 414 2,424 998 Cost 2,613 1,614 816 5,043 3,375 Accumulated depreciation and impairment (1,543) (674) (402) (2,619) (2,377) Carrying amount at 31 December 1,070 940 414 2,424 998 2023 Carrying amount at 1 January 1,385 639 379 2,403 917 FX adjustments 9 (1) (46) (38) (33) Hyperinflation restatement 2 13 53 68 47 Additions 258 440 210 908 394 Acquisitions/divestments, net (5) (4) - (9) 2 Disposals - - - - (16) Depreciation (392) (355) (159) (906) (347) Impairment (141) (36) (33) (210) (38) Reclass to Assets held for sale - (5) (11) (16) - Carrying amount at 31 December 1,116 691 393 2,200 926 Cost 2,515 1,451 735 4,701 3,148 Accumulated depreciation and impairment (1,399) (760) (342) (2,501) (2,222) Carrying amount at 31 December 1,116 691 393 2,200 926 124 FINANCIAL STATEMENTS 2.6 Right-of-use assets, property and equipment (continued) Accounting judgements Lease termThe majority of the Group’s lease contracts for HQ office buildings contain extension options, and additionally a few have no contractual fixed term. This contract structure, which combines fixed term with extension options, is essential to the Group to ensure the right balance of stability and efficiency, while at the same time securing flexibility to adjust based on future business needs. Management exercises judgement in determining the lease term, including whether extension options are reasonably certain to be exercised. All relevant facts and circumstances are considered, including whether these create an economic incentive for the Group to exercise an option or not: Strategic and operational development of the ISS business in the specific country, including management’s expectations for organic growth, acquisitions, divestments and restructurings Suitableness of the location in the longer term Development in market prices in the specific geographic area The property’s condition, including significant leasehold improvements undertaken or expected to be undertaken Termination-related costs, such as penalties, obligations to restore the facility, relocation costs and potential business disruption Historical length of occupying similar buildings If the term cannot be reasonably determined, the term for HQ office building contracts without an end date is set to 10 years based on the Group’s past experience. Management reassesses the lease term based on the above facts and circumstance, if significant changes or events occur, and revises the lease term if appropriate. Accounting policy Right-of-use assetsare recognised at the commencement date of the lease and measured at cost less accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities, including extension options. Certain leases comprise a liability to dismantle or remove the asset or restore the facility. Estimated costs related to such liability are recognised as part of the cost of the asset. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the asset. Average lease term applied Properties: HQ office leases 10-12 years Customer-specific leases (contract term)3-5 years Vehicles 3-5 years Other equipment 2-5 years Depreciation methods, lease terms (including extension options) and residual values are reassessed at the reporting date. The recognition exemption is applied for short-term leases (term of 12 months or less) and leases of low-value assets (e.g. minor cleaning and IT equipment and office furniture). Related lease payments are recognised in Other operating expenses on a straight-line basis over the lease term. Property and equipmentis measured at cost, less accumulated depreciation and impairment losses. Property and equipment is depreciated on a straight-line basis over the estimated useful lives of the assets. Estimated useful life Equipment 3-10 years Leasehold improvements (lease term) 3-10 years Buildings 20-40 years Land Not depreciated Depreciation methods, useful lives and residual values are reassessed at the reporting date. Gains and losses arising on the disposal or retirement of property and equipment are recognised in Other operating expenses in the year of sale, except gains and losses arising on disposal of property, which are recognised in Other income and expenses, net. 2.7 Free cash flow Free cash flow as defined by management, see 8.5, Definitions, is summarised below. Free cash flow is not a financial perfor-mance measure defined by IFRS. Accordingly, the measure and its calculation is presented as it is used by management as an alternative performance measure in managing the business. The free cash flow measure should not be considered a substitute for those measures required by IFRS and may not be calculated by other companies in the same manner. As such, reference is made to the IFRS measures included in the consolidated statement of cash flows of the consolidated financial statements. (DKKm) Note 2024 2023 Cash flow from operating activities 3,727 3,392 Acquisition of intangible assets, property and equipment (634) (719) Disposal of intangible assets, property and equipment 15 16 Change in financial assets 1) (35) (6) Addition of right-of-use assets, net 2.6 (1,077) (908) Free cash flow 1,996 1,775 1)Excluding changes in equity-accounted investments of DKK 22 million (2023: DKK (15) million). 125 FINANCIAL STATEMENTS 3 Strategic investments and divestments We are committed to investing in our business to drive long-term sustainable growth. In line with our capital allocation policy, value-creating acquisitions play a key part in enhancing our business and we will continuously consider and evaluate opportunities to build an M&A pipeline. In 2024, we further strengthened our market positions in Switzerland and Spain through the bolt-on acquisitions of gammaRenax and Grupo BN. Both acquisitions have a strong strategic fit, a country-wide footprint, and generate operational synergies for ISS. In addition, we made two minor acquisitions in Belgium focused on developing our technical service offering as well as a minor acquisition in Austria. The divestment of ISS France was completed in April 2024, marking the final step in the divestment programme outlined in the OneISS Strategy. At 31 December 2024, no businesses were classified as held for sale. Investing in technology In recent years, we have invested significantly in technology with the ambition of becoming technology leader in our industry. Our focus has been on building digital applications for our customers and employees as well as a cybersecure infrastructure. In 2024, we continued to invest in and develop software, which added DKK 277 million to the balance of capitalised software. Going forward our focus will shift from technology leadership to technology as an enabler for our business and our strategic goals in line with our updated strategic priorities launched in December 2024. As a result, we will continue to invest in technology as part of our strategic initiatives to drive our commercial agenda, improve our people processes and drive efficiencies in our overhead and service costs. In this section: 3 .1 Intangible assets 3 .2 Impairment tests 3 .3 Acquisitions 3 .4 Discontinued operations and divestments Intangible assets – our largest asset category 50.6 DKKbn 48% Intangibles % of total assets Investing in technology – software additions DKKm 126 FINANCIAL STATEMENTS 3.1 Intangible assets (DKKm) Goodwill Brands Customer contracts Software Total 2024 Carrying amount at 1 January 19,696 1,589 934 1,053 23,272 FX adjustments 51 - (34) (4) 13 Hyperinflation restatement 339 - 164 3 506 Additions - - - 277 277 Acquisitions/divestments, net 415 - 181 - 596 Amortisation - - (91) (224) (315) Reclass - - - 10 10 Carrying amount at 31 December 20,501 1,589 1,154 1,115 24,359 Cost 21,751 1,673 9,067 3,207 35,698 Accumulated amortisation and impairment (1,250) (84) (7,913) (2,092) (11,339) Carrying amount at 31 December 20,501 1,589 1,154 1,115 24,359 2023 Carrying amount at 1 January 20,450 1,589 857 1,024 23,920 FX adjustments (369) - (163) (4) (536) Hyperinflation restatement 337 - 173 2 512 Additions - - - 315 315 Acquisitions/divestments, net 215 - 136 - 351 Disposals - - - (1) (1) Amortisation - - (69) (211) (280) Impairment (937) - - (72) (1,009) Carrying amount at 31 December 19,696 1,589 934 1,053 23,272 Cost 20,943 1,669 8,728 2,943 34,283 Accumulated amortisation and impairment (1,247) (80) (7,794) (1,890) (11,011) Carrying amount at 31 December 19,696 1,589 934 1,053 23,272 Goodwill and customer contracts In 2024, the Group’s acquisitions added DKK 417 million to goodwill and DKK 181 million to customer contracts, see 3.3, Acquisitions. Furthermore, hyperinflation in Türkiye added DKK 339 million to goodwill and DKK 164 million to customer contracts. Goodwill relates mainly to assembled workforce, technical expertise and know how, synergies and scale benefits as well as platform for growth. Brands The carrying amount of brands relates to the ISS brand, which is considered to have an indefinite useful life. Thus, the ISS brand is not amortised but tested for impairment annually, see 3.2, Impairment tests. Software Technology is a key enabler of the Group’s strategy and an integrated part of our customer value propositions. Overall, the Group’s software investments relate to 1) customer-facing solu-tions, 2) employee-facing solutions and 3) IT security. A significant part of our software is mandatory Group-managed solutions as we wish to harvest scale-benefits and ensure consistency across the Group. Our capitalised software is mainly owned – either “off-the-shelf” or solutions being fully or partially customised to ISS – whereas the remaining (mainly the most recent software solutions) relates to Software as a Service (SaaS solutions). In 2024, additions amounted to DKK 277 million (2023: DKK 315 million) and software included DKK 136 million related to assets under development at Group level (2023: DKK 175 million). Accounting judgements Software as a Service (SaaS)Generally, the right to access a cloud provider’s software does not give rise to an intangible asset because that right does not in itself give ISS control over the software asset. At the commencement date, management assesses whether the Group acquires an intangible asset, leases an asset or solely receives software as a service over the term of the contract. If the Group receives a right to use cloud hosted software managed by a software provider without further rights or control, it is neither a lease nor an intangible asset and costs are expensed as the Group receives the SaaS. However, in some circumstances the Group may obtain control, which may be the case when: a)ISS has the contractual right to take possession of the software during the hosting period without incurring significant costs; b)ISS has the ability to use software separately without signifi-cant diminution in utility or value; and c)It is feasible for ISS to run the software on its own hardware or contract with a party (unrelated to the cloud provider) to do so. Capitalisation of configuration or customisation costsIn SaaS arrangements, capitalisation requires management’s assessment of the nature of the activities performed and the output. Such activities would typically entail development of additional software code that enhances, modifies or creates additional capability. If activities performed result in the creation of a resource that the Group controls, such configuration and customisation costs are capitalised. 127 FINANCIAL STATEMENTS 3.1 Intangible assets (continued) Accounting policy Goodwilland brands (the ISS brand) with indefinite useful lives are not amortised but recognised at cost less accumulated impairment losses. Acquisition-related customer contractsare recognised at fair value at the acquisition date and subsequently, at cost less accumulated amortisation and impairment losses. Softwareis measured at cost less accumulated amortisation and impairment losses. The cost of software developed for internal use includes external costs to consultants and software as well as internal direct costs related to the development. Other development costs for which it cannot be demonstrated that future economic benefits will flow to the Group are recognised in profit or loss. Amortisation is calculated on a straight-line basis over the estimated useful lives except for certain customer contracts where the unit of production method better reflects the expected pattern of consumption. Estimated useful life Customer contracts 10-24 years Software 3-10 years Amortisation methods and useful lives are reassessed at the reporting date. Software as a Service (SaaS) arrangementsare service contracts providing the Group with the right to use cloud hosted software managed by the software provider over the contract term. Generally, costs related to SaaS are expensed as incurred in Operating expenses, including cloud-hosting fees, software licenses, internal costs to select a cloud provider as well as data conversion, training and testing costs. Certain costs related to configuration and customisation activities may be capitalised as an intangible asset if they meet the recognition criteria, see Accounting judgements. Such assets are amortised over their useful lives when ready for use. 3.2 Impairment tests 3.2.1 Impairment test resultsThe impairment tests of goodwill and customer contracts performed at 31 December 2024 did not result in recognition of impairment losses (2023: no impairment losses). In the majority of the Group’s CGUs, excess values increased in 2024 due to improved financial results leading to higher finan-cial forecasts, which was only partially offset by broad-based increases in discount rates. It is management’s view that excess values in the Group’s CGUs, including in Türkiye, are fairly resilient to any likely and reasonable deteriorations in the key assumptions applied, see sensitivity analyses in 3.2.2, Goodwill and customer contracts. Türkiye In 2024, ISS Türkiye continued to perform well in terms of revenue growth, operating margin and free cash flow despite the difficult macroeconomic environment with continued high inflation and increasing interest rates. However, due to the IAS 29 hyperinflation adjustments goodwill and customer contracts also continued to increase. At 31 December 2024, intangibles amounted to DKK 1.6 billion (2023: DKK 1.3 billion) of which DKK 1.4 billion (2023: DKK 1.0 billion) was attributable to hyperinfla-tion. The Group continued to apply a normalised WACC rate in the terminal period (in line with last year), as it is management’s view that it is most appropriate given the circumstances. Accounting estimates In performing the impairment test, management assesses whether the CGU to which the goodwill relates will be able to generate positive net cash flows sufficient to support the value of intangibles and other non-current assets. The assessment is based on estimates of expected future cash flows (value in use) for the individual CGU, which by nature are uncertain. Estimates are based on financial forecasts for the following year as approved by management, and estimated discount rates, growth and market developments. Assumptions applied in the short to medium term (forecasting period of five years) as well as terminal growth rates and margins applied are described in 3.2.4, Determining value in use. In Türkiye, as a result of the highly unusual macroeconomic situation, the normal Group methodology of applying a constant WACC rate in both the forecasting and terminal period, would lead to an understatement of the value in use (especially in the terminal period) due to the disproportionate negative gap between the risk-free interest rate and the consistently applied terminal growth rate. Instead, the Group applies a normalised WACC rate in the terminal period, while the WACC applied in the forecasting period is determined based on the normal Group methodology. Given the circumstances, it is management’s view that this is more appropriate and leads to a more reasonable estimate of the value in use. The outcome of the impairment test may vary significantly should the assumptions and estimates not be realised as expected and applied as basis for management’s conclusion of whether impairment of a CGU has occurred. Accounting policy The Group performs impairment test of goodwill and the ISS brand at the reporting date or when indications of impairment exist. Other non-current assets are tested annually for indications of impairment. When performing the impairment test, the recoverable amount of the asset is determined, i.e. the higher of the fair value of the asset less anticipated costs of disposal and its value in use. The value in use is calculated as the present value of expected future cash flows from the asset or the CGU to which the asset belongs. Corporate costs for services performed by the Group’s head office functions for the benefit of the CGUs are allocated to the individual CGUs and taken into account in the calculation. Impairment of goodwill is recognised in profit or loss in a separate line if the carrying amount of the CGU exceeds its estimated recoverable amount. The carrying amount of goodwill is tested for impairment together with other non-current assets in the CGU to which goodwill is allocated. Impairment of goodwill is not reversed. Impairment of other assets is reversed if estimates used to calculate the recoverable amount have been changed. An impairment loss is reversed to the extent that the carrying amount does not exceed the carrying amount that would have been determined, net of depreciation and amortisation, if no impairment loss had been recognised. Management believes that the value of the ISS brandsupports the ISS Group in its entirety rather than any individual CGU. Accordingly, the ISS brand is tested for impairment at Group level. The impairment test is based on group-wide cash flows adjusted for the Group’s total goodwill and other non-current assets. 128 FINANCIAL STATEMENTS 3.2 Impairment tests (continued) 3.2.2 Goodwill and customer contractsThe carrying amounts of intangibles for CGUs representing more than 5% of intangibles are disclosed in the table to the right together with a sensitivity analysis on the key assumptions in the impairment testing. Sensitivity analysis The allowed change represents the percentage points by which the specific key assumption can change, all other things being equal, before the CGU’s recoverable amount equals its carrying amount. 3.2.3 Cash-generating units (CGUs)Consistent with the Group’s management and reporting structure, the lowest level of CGUs is individual countries, as cash inflows are generated largely independent of cash inflows in other ISS countries (the majority of our contract portfolio is locally based with no cross-border activities). Accordingly, impairment tests are carried out per country, and intangibles (goodwill and customer contracts) are allocated to these. For a few countries, management has been combined to take advantage of similarities in terms of markets, shared customers and cost synergies. In these exceptional cases, the countries are regarded as one CGU when performing the impairment test. Forecasting period Terminal period Carrying amount Growth Margin 1) Growth Margin 1) Discount rate (DKKm) Goodwill Customer contracts Total Avg. Allowed decrease Avg. Allowed decrease Rate Allowed decrease Rate Allowed decrease Net of tax Allowed increase Pre-tax 2024 UK & Ireland 2,737 79 2,816 5.1% >5.1% 5.2% >5.2% 2.5% >2.5% 5.5% 3.0% 11.7% 6.1% 15.2% US & Canada 2,262 125 2,387 4.5% >4.5% 5.4% >5.4% 3.0% >3.0% 6.0% 3.7% 11.3% 8.8% 14.5% Switzerland 1,904 252 2,156 1.2% >1.2% 8.0% >8.0% 1.5% >1.5% 8.0% 7.6% 6.2% >6.2% 7.4% Finland 2,104 - 2,104 2.9% >2.9% 6.4% >6.4% 2.5% > 2.5% 6.4% 2.6% 8.6% 2.9% 10.4% Denmark 1,620 - 1,620 1.3% >1.3% 5.8% >5.8% 2.0% >2.0% 6.0% 3.5% 8.5% 5.6% 10.6% Türkiye 2) 1,101 509 1,610 25.3% 17.9% 7.9% >7.9% 10.0% >10.0% 8.0% 5.4% 36.3% 10.2% 42.5% Spain 1,278 161 1,439 3.9% >3.9% 6.5% >6.5% 2.5% >2.5% 6.5% 4.4% 9.3% 7.8% 11.9% Belgium & Lux. 1,385 22 1,407 3.0% >3.0% 6.6% >6.6% 2.5% >2.5% 6.6% 3.7% 9.1% 5.4% 11.7% Australia & NZ 1,244 - 1,244 3.0% >3.0% 7.0% >7.0% 3.0% >3.0% 7.0% 7.0% 10.4% >10.4% 14.2% Norway 1,097 - 1,097 1.4% >1.4% 8.0% >8.0% 2.5% >2.5% 8.0% >8.0% 9.5% >9.5% 11.8% Other 3,769 6 3,775 Total 20,501 1,154 21,655 2023 UK & Ireland 2,617 88 2,705 3.0% >3.0% 5.4% >5.4% 2.5% >2.5% 6.0% 3.5% 10.4% 6.5% 13.7% US & Canada 2,125 134 2,259 4.3% >4.3% 6.0% >6.0% 3.0% >3.0% 6.0% 3.4% 10.9% 7.1% 14.1% Switzerland 1,708 156 1,864 1.9% >1.9% 7.8% >7.8% 2.0% >2.0% 7.8% 7.4% 6.9% >6.9% 8.1% Finland 2,102 - 2,102 2.6% >2.6% 6.2% >6.2% 2.5% 2.5% 6.2% 1.8% 8.6% 1.9% 10.4% Denmark 1,620 - 1,620 2.1% >2.1% 5.3% >5.3% 2.0% >2.0% 6.0% 2.0% 9.3% 2.6% 11.6% Türkiye 2) 857 417 1,274 31.7% 11.5% 7.8% 6.9% 10.0% 8.4% 8.0% 3.6% 36.2% 5.3% 43.7% Spain 1,157 132 1,289 4.5% >4.5% 6.4% >6.4% 2.5% >2.5% 6.5% 4.6% 9.0% 8.7% 11.5% Belgium & Lux. 1,322 - 1,322 2.9% >2.9% 6.5% >6.5% 2.5% >2.5% 6.5% 4.0% 9.2% 6.5% 11.8% Australia & NZ 1,283 - 1,283 2.0% >2.0% 7.5% >7.5% 3.0% >3.0% 7.5% 7.5% 9.7% >9.7% 13.3% Norway 1,151 - 1,151 3.1% >3.1% 7.9% >7.9% 3.0% >3.0% 7.9% >7.9% 9.2% >9.2% 11.2% Other 3,754 7 3,761 Total 19,696 934 20,630 1)Excluding allocated corporate costs. 2)Discount rate applied in the terminal period was 20.5%. 129 FINANCIAL STATEMENTS 3.2 Impairment tests (continued) 3.2.4 Determining value in useThe recoverable amount of each CGU is calculated on the basis of its value in use using certain key assumptions per CGU, i.e. revenue growth, operating margin and discount rate. Forecasting period Cash flow projections for the individual CGUs are based on finan-cial forecasts for the following year as approved by management. Generally, assumptions applied in the short to medium term (forecasting period of five years) reflect management’s expec-tations considering all relevant factors, including the Group’s strategic initiatives, local initiatives, past experience and exter-nal sources of information, where possible and relevant. This also includes expected development in local markets in terms of competition, inflation and growth. Specifically, management has considered the expected impacts from the Group’s updated strategic priorities from 2025 and onwards, especially increased investments in our commercial agenda, our people processes and in driving efficiencies in our overhead and service costs. Where relevant, initiated restruc-turings and other improvement initiatives, have also been taken into consideration when estimating the expected future performance and cash flows. Management also assessed the impact from macroeconomic devel-opments, mainly inflation rates. In the year, the Group demonstrat-ed its continued ability to manage and mitigate wage increases and price increases in the supply chain, including activating indexation mechanisms in the customer contracts to increase prices. Terminal period Assumptions applied in the terminal period generally reflect management’s long-term expectations for the individual country. Revenue growth reflects inflation and GDP growth and is determined based on input from external sources like IMF’s “World Economic Outlook”. Operating margin reflects the expected normalised earnings level in the long term. 3.2.5 The ISS brandThe carrying amount of brands relates to the ISS brand and was DKK 1,589 million at 31 December 2024 (2023: DKK 1,589 million). In 2024, no impairment of the ISS brand was identified. No sensitivity is shown for the ISS brand, as the group-wide cash flows adjusted for the Group’s total goodwill and other non-cur-rent assets significantly exceed the carrying amount. This is addi-tionally supported by ISS’s market capitalisation at 31 December 2024 of approximately DKK 24 billion exceeding the carrying amount of equity, which amounted to DKK 12 billion. Key assumptions 1) Revenue growth Year 1 Financial forecasts as approved by management Forecasting period (year 2-5) Based on expected market development, including maturity and inflation Impact from local and Group initiatives are considered, including key account focus Terminal period Long-term expectations based on external sources such as IMF “World Economic Outlook”, OECD, etc. Not exceeding expected long-term average for the country, including inflation Operating margin Year 1 Financial forecasts as approved by management Forecasting period (year 2-5) Impact from Group initiatives are considered, including key account focus and in-vestments in our commercial agenda, our people processes and driving efficiencies in our overhead and service costs Restructurings and local improvement initiatives are considered Terminal period Reflects the expected normalised earnings level in the long term Discount rates (net of tax) Risk-free interest rate based on 30-year government bonds (country-specific) where available, except that for Türkiye a normalised interest rate is applied in the terminal period (see Accounting estimates). If 30-year bonds are not available for the given CGU, the rate is based on a 20-year or 10-year government bond Country specific estimation risk premium added (to reflect possible variations in amounts/timing of the projected cash flows) Equity risk premium: 5.5% (2023: 6.0%) 2) Debt/equity target ratio (market values): 25/75 (2023: 25/75) 1)The key assumptions applied are used for accounting purposes and should not be considered a forward-looking statement within the meaning of the US Private Securities Litigation Act of 1995 and similar laws in other countries regarding expectations to the future development. 2)For Türkiye a country specific risk premium of 5.0% is added (2023: 9.0%). 130 FINANCIAL STATEMENTS 3.3 Acquisitions 3.3.1 Acquisition impact In line with the Group’s normal procedure and due to the short time between completion of the acquisitions and finalisation of the consolidated financial statements, the acquisition accounting has not yet been completed. Thus, the fair value of certain assets and liabilities, such as customer contracts and trade receivables, are determined based on management’s best estimates as the necessary analyses and calculations could not be completed. gammaRenaxOn 25 April 2024, ISS acquired 100% of the shares in gam-maRenax AG. The acquisition strengthens our market position in Switzerland by adding scale within our existing core services as well as creating better density across the country and growth in our prioritised customer segments. Goodwill is attributable mainly to: 1) platform for growth, 2) synergies and scale benefits and 3) assembled workforce. Grupo BN On 10 September 2024, ISS acquired 100% of the shares in Grupo BN. The acquisition strengthens our market position in Spain and has a strong strategic fit. It enables us to expand our cleaning ser-vices thus supporting our global leadership in the cleaning sector. Goodwill is attributable mainly to: 1) synergies and scale benefits and 2) assembled workforce. BluebridgeOn 16 December 2024, ISS acquired 100% of the shares in Bluebridge in Belgium. The acquisition enables us to expand and develop our technical service offering. Goodwill is attributable mainly to 1) expertise and know-how in technical services, 2) synergies and 3) assembled workforce. Acquisitions completed in 2024 Company/activity Country Service type Interest Consoli-dated Revenue since completion Annual revenue (DKKm) 1) Employees (number) 1) Med-Serv Austria Cleaning 100% February 53 69 226 gammaRenax Switzerland Cleaning 100% April 395 590 1,800 Grupo BN Spain Cleaning 100% September 117 309 2,300 Bluebridge Belgium Technical 100% December - 142 102 Vinca Belgium Technical Activities December - 11 9 Total 565 1,121 4,437 1)Unaudited Net assets and cash flow (DKKm) gamma- Renax Grupo BN Blue-bridge Other/Prior year adj. 2024 2023 Customer contracts 114 45 22 - 181 136 Other non-current assets 20 36 10 1 67 83 Trade receivables 74 110 28 10 222 200 Other current assets 78 10 14 11 113 205 Non-current liabilities (41) (109) (20) (10) (180) (86) Current liabilities (128) (80) (34) (19) (261) (355) Fair value of net assets 117 12 20 (7) 142 183 Goodwill 220 116 55 26 417 221 Consideration transferred 337 128 75 19 559 404 Cash in acquired business (49) (8) (3) (10) (70) (9) Consideration transferred, net 288 120 72 9 489 395 Contingent and deferred consideration 17 (2) - 6 21 (22) Acquisition (cash flow) 305 118 72 15 510 373 3.3.2 Subsequent acquisitionsThe Group completed no acquisitions from 1 January to 15 February 2025. 3.3.3 Pro forma revenue/operating profitPro forma revenue was DKK 84,220 million and operating profit before other items was DKK 4,175 million, corresponding to adjustments of the reported amounts of DKK 459 million and DKK 32 million, respectively. Accounting policy Business combinations (acquisitions)are accounted for using the acquisition method. The consideration transferred is measured at acquisition date fair value of net assets and any contingent consideration as well as the amount of any non-controlling interests in the acquiree. For each acquisition, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and presented in Other income and expenses, net. Contingent consideration is classified as financial liabilities and presented in Other liabilities with changes in fair value recognised in Other income and expenses, net. Depending on the size, complexity, and timing of the acquisition, uncertainties regarding identification or measurement of assets, liabilities and contingent liabilities may arise, and the initial recognition is based on provisionally determined fair values. Changes to fair values are adjusted against goodwill up until 12 months after the acquisition date. Comparatives are restated, accordingly. Changes in fair values after 12 months are recognised in Other income and expenses, net. Goodwill is initially measured at cost being the excess of the consideration transferred, over the fair value of the net identifiable assets acquired. Subsequently, goodwill is measured at cost less accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the Group’s cash-generating units (CGUs) that are expected to benefit from the combination. Goodwill is not deductible for tax purposes. Pro forma revenue and operating profit before other itemsinclude adjustments assuming that acquisitions/divestments were in-/excluded in/from profit or loss from 1 January. Estimates are made by local ISS management at the time of acquisition/divestment or actual results where available, and are based on unaudited financial information. 131 FINANCIAL STATEMENTS 3.4 Discontinued operations and divestments 3.4.1 Discontinued operationsOn 9 April 2024, the divestment of ISS France was completed, and consequently, at 31 December 2024 no businesses were classified as assets held for sale. Net profit generated in ISS France up until the completion of the divestment is specified below. The preliminary divestment loss recognised in 2023 was reassessed on the basis of the final sales price and closing balance. This led to a negative adjustment of DKK 5 million recognised in Other income and expenses, net. Profit or loss 1) (DKKm) Note 2024 2023 Revenue 665 2,662 Expenses (703) (2,816) Operating profit before other items (38) (154) Other income and expenses, net (6) (489) Goodwill impairment 3.2 - (937) Operating profit (44) (1,580) Finance income/(costs), net (7) (55) Net profit before tax (51) (1,635) Income tax (1) (17) Net profit (52) (1,652) 1)Included France in 2024 (2023: Brunei and France). Cash flows (DKKm) 2024 2023 Operating activities (62) (44) Investing activities (323) (2) Financing activities (48) (41) Earnings per share (DKK) 2024 2023 Basic earnings per share (0.3) (8.9) Diluted earnings per share (0.3) (8.8) 3.4.2 DivestmentsDivestments completed in 2024 Company/activity Country Service type Excluded from P/L Interest Annual revenue (DKKm) 1) Employees (number) 1) Ground Service Austria Other March 100% 35 78 ISS France France Country exit April 100% 2,658 14,925 Travel Management Sweden Other April 100% 46 5 Total 2,739 15,008 1)Unaudited Net assets and cash flow impact (DKKm) 2024 2023 Goodwill 2 17 Other non-current assets 35 18 Current assets 883 59 Non-current liabilities (111) - Borrowings (260) (5) Current liabilities (866) (27) Net assets disposed (317) 62 Gain/(loss) on divestment, net 1) (61) (5) Divestment costs 174 42 Consideration received (204) 99 Cash in divested businesses (263) (23) Consideration received, net (467) 76 Contingent and deferred consideration 233 (4) Divestment costs paid (116) (47) Divestments (cash flow) (350) 25 1)In addition, DKK 0 million (2023: DKK 18 million) was recognised in Other income and expenses, net related to recycling of accumulated FX adjustments on country exits. Contingent and deferred considerationrelated to the divest-ment of ISS France, where part of the consideration is deferred up to three years from the date of divestment. 3.4.4 Subsequent divestmentsNo divestments were completed from 1 January to 15 February 2025. Accounting policy A disposal group is presented as discontinued operationsif it is a geographical area, i.e. a CGU (country), that either has been disposed of, or is classified as held for sale. The classification as discontinued operations is assessed based on several factors; quantitative and qualitative. Overall, it is assessed whether the disposal group represents a component of an entity (i.e. a CGU), which in ISS is defined as a country. Further, it is assessed whether the classification is significant for understanding the financial performance of the Group’s continuing operations. For a single country, the assessment of significant is made separately for that country. However, in case of a coordinated strategic plan to dispose of several businesses (CGUs), the assessment of significant is made for these countries as a whole. Discontinued operations are presented separately as Net profit from discontinued operations and specified in the notes. Comparatives are restated. Cash flows from discontinued operations are included in cash flow from operating, investing and financing activities together with cash flows from continuing operations, but separately specified in 3.4, Discontinued operations and divestments. DivestmentsGain or loss on disposal of an operation that is part of a CGU includes a portion of the related goodwill allocated to that CGU. Goodwill related to the disposed operation is measured based on the fair value of the disposed operation relative to the fair value of the entire CGU. If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interests and other components of equity, while any resultant gain or loss is recognised in Other income and expenses, net. 132 FINANCIAL STATEMENTS 4 Capital structure Our primary capital allocation priority is to ensure a strong and efficient balance sheet and that our liquidity position supports operational needs, financial flexibility and our continued strategy execution, while maintaining our invest- ment grade rating. In 2024, the Group’s liquidity position remained strong as a result of the solid free cash flow generation. At 31 December 2024, the Group’s liquidity reserves increased to DKK 12.8 billion (2023: DKK 12.1 billion) and net debt to DKK 11.5 billion (2023: DKK 10.5 billion) resulting in a financial leverage of 2.0x (2023: 2.2x). Sharing excess capital with shareholders On 22 February 2024, we announced a share buyback pro- gramme of DKK 1.0 billion over the 12 months period running until 19 February 2025. Due to the strong liquidity position and cash flow outlook, the programme was increased twice during 2024, bringing the total value of the programme to DKK 1.5 billion. The programme was successfully concluded on 19 February 2025. Furthermore, we are today announcing that we will initiate a new share buyback programme of DKK 2.5 billion to be execut- ed until 13 February 2026. As a result of the strong liquidity position, the Board of Direc- tors (the Board) will at the annual general meeting propose a dividend for 2024 of 20% of adjusted net profit, corresponding to a total dividend of DKK 575 million (DKK 3.1 per share). Debt maturities and refinancing On 29 May 2024, ISS issued a 5-year EUR 500 million bond under the European Medium-Term Note (EMTN) programme, which is listed on the Luxembourg Stock Exchange. The net proceeds were mainly used for repayment of the Group’s EUR 300 million EMTNs maturing in December 2024. EUR 500 million of EMTN bonds will mature in July 2025. In the first half of 2025, the Group will evaluate different financing options. Except for this, ISS has no material short-term debt maturities. Low financial risk exposure We are exposed to financial risks, mainly liquidity and curren- cy risk. Risk is a natural part of our business activities and a condition for creating value. Through effective risk manage- ment, risks are monitored and mitigated to an acceptable level. In 2024, financial risk exposure to the consolidated financial statements continued to be low. In this section: 4 .1 Equity 4 .2 Financing 4 .3 Financial risk management 4 .4 Interest rate risk 4 .5 Liquidity risk 4 .6 Currency risk Financial risk exposure Low Debt maturity profile DKKbn Revolving Credit Facility (undrawn) EMTNs/Bank loans Net debt and financial leverage 1) DKKbn Net debt (DKKbn) Net debt/Pro forma adjusted EBITDA 1) Excluding restructurings and one-off costs Proposed dividends 2024 20% of adjusted profit 1) 1) See 8.5, Definitions p. 155 133 FINANCIAL STATEMENTS 4.1 Equity 4.1.1 Share capital and share premiumAt 31 December 2024, ISS’s share capital comprised a total of DKK 185,668,226 shares (2023: 185,668,226) with a nominal value of DKK 1 each. All shares were fully paid and freely transferable. ISS has one class of shares, and no shares carry special rights. Each share gives the holder the right to one vote at our general meetings. Share premium included in retained earnings at 31 December 2024 amounted to DKK 19,168 million (2023: DKK 19,168 million). 4.1.2 Treasury shares (DKKm) Purchase price Number 2024 At 1 January 66 331,906 Settlement of vested PSUs/RSUs (79) (624,352) Purchased 1,217 9,512,211 At 31 December 1,204 9,219,765 2023 At 1 January 185 938,343 Settlement of vested PSUs/RSUs (122) (623,774) Purchased 3 17,337 At 31 December 66 331,906 At 31 December 2024, ISS A/S owned a total of 9,219,765 treas-ury shares corresponding to 4.97% of the share capital. Share buyback programmes2024 programmeOn 22 February 2024, ISS announced a share buyback pro-gramme, under which ISS would buy back own shares for a maximum consideration of DKK 1.0 billion over the 12 months period from 22 February 2024 to 19 February 2025. During 2024, due to the strong liquidity position and cash flow outlook, the programme was increased twice, bringing the total value of the programme to DKK 1.5 billion. On 19 February 2025, ISS completed the programme as shares for a total consideration of DKK 1.5 billion had been repur-chased. At the annual general meeting on 11 April 2025, the Board of Directors expects to propose a decrease of ISS A/S’s share capital in accordance with the share buyback programme by cancellation of own shares. 2025 programmeThe Board of Directors has decided to initiate a new share buy-back programme under which ISS will buy back own shares for a maximum consideration of DKK 2.5 billion over a 12-months period from 20 February 2025 to 13 February 2026 at the lat-est, both days inclusive. The purpose of the share buyback pro-gramme is to reduce the share capital and to meet obligations arising from ISS’s share-based incentive programmes (LTIP). 4.1.3 Translation reserve (DKKm) Hedging Subsi-diaries Total 2024 At 1 January (269) (1,008) (1,277) FX adjustments - 306 306 At 31 December (269) (702) (971) 2023 At 1 January (185) (969) (1,154) Hedging and FX adjustments (84) (39) (123) At 31 December (269) (1,008) (1,277) A specification of hedging and FX adjustments in the year is provided in 4.1.7, Other comprehensive income. Hedging reserveThe hedging reserve comprises accumulated fair value ad-justments of net investment hedges in previous years. At 31 December 2024, the accumulated fair value adjustments, net of tax amounted to DKK (269) million of which DKK (140) million related to GBP, DKK (75) million related to CHF and DKK (54) million related to USD. The total tax effect was DKK 12 million. The amounts will remain in the translation reserve until full realisation of the foreign entity. 4.1.4 Earnings per share (in ‘000) 2024 2023 Average number of shares 185,668 185,668 Average number of treasury shares (4,714) (334) Average number of shares (basic) 180,954 185,334 Average number of PSUs and RSUs expected to vest 2,404 2,620 Average number of shares (diluted) 183,358 187,954 The table reflects the share data used in the basic and diluted EPS calculations, see 8.5, Definitions. The calculation of average number of diluted shares excluded a total of 1,268,950 PSUs and RSUs (2023: 833,977) which are not expected to vest. 4.1.5 DividendsAt the annual general meeting to be held on 11 April 2025, the Board of Directors will propose a dividend for 2024 of DKK 3.1 per share of DKK 1 (2023: DKK 2.3 per share), equivalent to DKK 575 million and a pay-out ratio of 20% (2023: DKK 427 million/pay-out ratio: 20%). There are no tax consequences of proposed dividends for the Group. In 2024, dividends paid, net of dividends on treasury shares, amounted to DKK 425 million (2023: DKK 390 million). 134 FINANCIAL STATEMENTS 4.1 Equity (continued) 4.1.6 Non-controlling interestsThe Group’s non-controlling interests predominantly relates to ISS Türkiye, where Actera, a leading Türkiyish private equity company, owns 39.9%. Actera became minority shareholder of ISS Türkiye as part of the acquisition of Rönesans Facility Management Company in September 2021. Further, certain members of management of ISS Türkiye together hold a minor-ity shareholding of 10% in ISS Türkiye. The shareholders’ agreement between ISS, Actera and man-agement establishes the rights and obligations of the parties, including rights and restrictions on transferring shares, such as right of first refusal, drag along rights from Q4 2024 and right to explore a potential Initial Public Offering (IPO). 4.1.7 Other comprehensive income Attributable to owners of ISS A/S (DKKm) Note Retained earnings Translation reserve Total Non- controlling interest Total equity 2024 Defined benefit plans Remeasurement (gain)/loss 7.1 (85) - (85) (55) (140) Asset ceiling 7.1 (28) - (28) - (28) FX adjustments Subsidiaries - 77 77 (71) 6 Hyperinflation, Türkiye - 229 229 248 477 Tax Tax related to the items above 25 - 25 11 36 Total (88) 306 218 133 351 2023 Defined benefit plans Remeasurement (gain)/loss 7.1 (423) - (423) (39) (462) Asset ceiling 7.1 299 - 299 - 299 FX adjustments Subsidiaries - (330) (330) (148) (478) Recycling of accumulated FX adj., country exits - (18) (18) - (18) Hyperinflation, Türkiye - 309 309 158 467 Hedging Fair value adj. of net investment hedges - (84) (84) - (84) Tax Tax related to the items above 23 - 23 10 33 Total (101) (123) (224) (19) (243) Development in 2024In 2024, other comprehensive income was DKK 351 million, an in-crease of DKK 594 million compared to 2023. The increase mainly related to a positive impact from FX adjustments of subsidiaries primarily in Türkiye and the UK partly offset by Switzerland. Accounting policy Retained earningsis the Group’s free reserves, which includes proposed dividends and share premium. Proposed dividends are recognised as a liability at the date when they are adopted at the annual general meeting. Share premium comprises amounts above the nominal share capital paid by shareholders when shares are issued by ISS A/S. Treasury sharesThe cost of acquisition and proceeds from sale of treasury shares are recognised in reserve for treasury shares. Dividends received in relation to treasury shares are recognised in retained earnings. Translation reservecomprises foreign exchange differences arising from the translation of financial statements of foreign entities with a functional currency other than DKK and from the translation of non-current balances which are considered part of the investment in foreign entities. Furthermore, fair value adjustments of net investment hedges and hyperinflation restatement are included. On full realisation of a foreign entity the accumulated foreign exchange adjustments are transferred to profit or loss in the same line item as the gain or loss. exchange adjustments are transferred to profit or loss in the same line item as the gain or loss. 135 FINANCIAL STATEMENTS 4.2 Financing 4.2.1 Borrowings (DKKm) Note 2024 2023 Issued bonds 15,635 14,073 Lease liabilities 2,464 2,335 Bank loans 242 311 Borrowings 18,341 16,719 Non-current liabilities 13,584 13,427 Current liabilities 4,757 3,292 Borrowings 18,341 16,719 Cash and cash equivalents (6,829) (6,093) Derivatives, net 2.2, 2.3 (32) 39 Securities 2.2 (140) (117) Net debt 11,340 10,548 Refinancing On 29 May 2024, ISS issued a 5-year bond with a principal amount of EUR 500 million and a coupon of 3.875%. The bond was issued under the Group’s EUR 3 billion European Medium Term Note (EMTN) programme, which is listed on the Luxembourg Stock Exchange. The net proceeds were used for repayment of the Group’s EUR 300 million EMTNs maturing in December 2024 as well as for general corporate purposes. Financing feesAt 31 December 2024, accumulated financing fees recognised in borrowings amounted to DKK 80 million (2023: DKK 54 million). The increase compared to last year was due to financing fees of DKK 49 million (2023: DKK 26 million) being capitalised in relation to the bond issue in May 2024, partly offset by ordinary amortisation of DKK 23 million (2023: DKK 29 million) recognised in finance costs. Fair value At 31 December 2024, the fair value of bonds was DKK 15,477 million (2023: DKK 13,474 million). The fair value of bonds was based on the quoted market price on the Luxembourg Stock Exchange and measurement is categorised as Level 1 in the fair value hierarchy due to the use of quoted market inputs. For the remaining borrowings, the fair values are not materially different from their carrying amounts due to their short-term nature. 4.2.2 Finance income and costs (DKKm) 2024 2023 Interest income on cash and cash equivalents 216 98 Hedge ineffectiveness of interest rate swaps 12 - Monetary gain on hyperinflation restatement 86 87 Finance income 314 185 Interest expenses on borrowings 1) (506) (356) Interest expenses on lease liabilities 1) (154) (121) Interest expenses on factoring 1) (71) (71) Bank fees (61) (62) Net interest on defined benefit obligations (33) (24) Amortisation of financing fees (non-cash) 1) (23) (29) Commitment fees (8) (16) Other (25) (13) Foreign exchange losses (23) (100) Finance costs (904) (792) 1)The total interest expensed determined on an amortised cost basis was DKK 754 million (2023: DKK 577 million). Interest income on cash and cash equivalentsThe increase compared to 2023 was mainly driven by interest income on the proceeds from the issued bond under the EMTN programme in May 2024 until repayment of the bond maturing in December 2024. Monetary gain on hyperinflation restatementrelated to the adjustment for hyperinflation (IAS 29) in Türkiye. Interest expenses on borrowingscomprised mainly interest on issued bonds. The increase compared to 2023 was driven by issuance of new EMTNs in May 2024 and increased interest rates throughout 2024 of which DKK 65 million related to the interest rate swaps on part of the bonds. Accounting policy Issued bondsand bank loansare recognised initially at fair value net of transaction costs (financing fees) and subsequently at amortised cost. Any difference between the proceeds and the nominal value is recognised in Finance costs over the term of the loan using the effective interest method. Lease liabilitiesare initially recognised at the present value of the payments to be made over the lease term. The present value is calculated using the Group’s incremental borrowing rate if the interest rate implicit in the lease is not readily determinable. Subsequently, the liability is measured at amortised cost and remeasured due to modifications such as changes in; 1) lease term, 2) the assessment to purchase the underlying asset, 3) future lease payments (e.g. a change in an index or rate), or 4) the Group’s estimate of the amount expected to be payable under a residual guarantee. Foreign exchange losseswere mainly driven by the unhedged TRY and EUR positions. The highest contributor was TRY, which remained unhedged due to high cost. The decrease compared to 2023 was driven by TRY which depreciated 11% against DKK in 2024 compared to 39% against DKK in 2023. 136 FINANCIAL STATEMENTS 4.2 Financing (continued) 4.2.3 Cash flow impact from changes in borrowings (DKKm) Note Issued bonds Lease liabilities Bank loans Total 2024 At 1 January 14,073 2,335 311 16,719 FX adjustments 9 (13) (8) (12) Cash flows 1,459 (963) (259) 237 Acquisitions/divestments, net - 11 89 100 Lease additions 2.6 - 1,077 - 1,077 Fair value adjustments 4.4 88 - - 88 Other 6 17 109 132 At 31 December 15,635 2,464 242 18,341 2023 At 1 January 13,973 2,464 363 16,800 FX adjustments 31 (16) (118) (103) Cash flows - (791) (147) (938) Acquisitions/divestments, net - (9) 207 198 Lease additions 2.6 - 908 - 908 Fair value adjustments 4.4 51 - - 51 Reclass to Liabilities held for sale - (243) (11) (254) Other 18 22 17 57 At 31 December 14,073 2,335 311 16,719 4.3 Financial risk management The Group is exposed to a number of financial risks arising from its operating and financing activities, mainly interest rate risk, liquidity risk, currency risk and credit risk. It is manage-ment’s assessment that the Group’s exposure to these risks is low. The Group has not identified additional financial risk exposures in 2024 compared to 2023. Financial risks are managed centrally by Group Treasury based on the Financial Policy, which is reviewed and approved annual-ly by the Board of Directors. Due to our decentralised business model, exposure to credit risk on trade receivables and expect-ed credit losses is however managed locally in the operating entities, see 2.1, Trade receivables and credit risk. Through our risk management procedures, financial risks are monitored and reduced to an acceptable level. It is the Group’s policy to mitigate risk exposure derived from its business activities. Group policy does not allow taking specula-tive positions in the financial markets. On an ongoing basis the Group considers whether the financial risk management approach appropriately addresses the risk exposures. Risk assessmentThe Group’s objectives and policies for measuring and man-aging risk exposure are explained in the respective notes. An overview of financial risks and impact assessment at 31 Decem-ber 2024 is provided in the table to the right. Risk assessment at 31 December Credit risk – Low Not past due on trade receivables is around 90% (aging analysis) Expected credit losses on trade receivables are less than 2% of gross receivables (credit ratings) The Group transacts only with financial institutions with a credit rating of at least A- (cash and cash equivalents) Note 2.1 Interest rate risk – Low 58% of the Group’s gross debt carried fixed rates (2023: 65%) Note 4.4 Liquidity risk – Low Diversified funding portfolio of debt (bonds and bank loans) No financial covenants in our main Group facilities (certain covenants apply to the local loan facility in Türkiye) Revolving credit facility of EUR 900 million (established in 2023) maturing in 2029 Uncommitted facilities in place to ensure flexible and efficient liquidity management Duration of gross debt is 2.1 years (2023: 2.1) Note 4.5 Currency risk – Low The Group benefits from a natural hedge in having income, costs and investments in the same functional currency, country-by-country 98.3% of the bonds and bank loans denominated in EUR (2023: 97.7%) Note 4.6 137 FINANCIAL STATEMENTS 4.4 Interest rate risk Interest rate risk– low exposure Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of financial instruments. Exposure relates to bank loans, bonds or interest rate swaps with floating interest rates. Risk management policy At least 50% of the Group’s gross debt must carry fixed interest rates directly or through derivatives Mitigation The fixed/floating ratio is measured on a monthly basis Interest rate swaps (fair value hedge) are used to manage the fixed/floating ratio on gross debt 4.4.1 Interest-bearing borrowings 2024 2023 (DKKm) Maturity Nominal interest rate Nominal value Carrying amount Carrying amount Issued bonds (fixed interest rate) EMTNs (EUR 300 million) 2024 2.13% - - 2,237 EMTNs (EUR 500 million) 1) 2025 1.25% 3,729 3,711 3,660 EMTNs (EUR 500 million) 2026 0.88% 3,729 3,721 3,713 EMTNs (EUR 600 million) 2027 1.50% 4,474 4,468 4,463 EMTNs (EUR 500 million) 1) 2029 3.88% 3,729 3,735 - 15,661 15,635 14,073 Bank loans (floating interest rate) Loan facility Türkiye (TRY) 2026 TLFREF 52 51 97 Bank loans and overdrafts (Multi) - - 213 191 214 265 242 311 1)The carrying amount included the accumulated fair value adjustments at 31 December 2024 of the hedged items, see 4.4.2 below. Interest rate sensitivityAn increase in relevant interest rates of 1%-point, with all other variables held constant, would have decreased net profit and equity by DKK 44 million (2023: DKK 26 million). The estimate was based on the Group’s floating rate borrow-ings, i.e. disregarding cash and cash equivalents, as the level at 31 December is typically the highest in the year and thus not representative for the purpose of this analysis. 4.4.2 Fair value hedge (DKKm) Nominal amount Carrying amount Accumulated fair value adj. Change in FV Interest rate swap EUR 300 million (15) (15) 42 EMTNs 2025 EUR 500 million 3,711 15 (42) Interest rate swaps EUR 250 million 58 58 58 EMTNs 2029 EUR 500 million 3,735 (46) (46) At 31 December 2024, the Group had interest rate swap agree-ments with a total nominal amount of EUR 550 million whereby the Group receives a fixed rate interest and pays a variable interest rate on the nominal amount. The swaps hedge the exposure to fair value changes of the Group’s fixed rate bond and mature in 2025 and 2029, which equals the maturity of the bonds. In 2024, DKK 12 million (income) was recognised in profit or loss related to the ineffective part of the interest rate swaps (2023: no ineffectiveness). Accounting policy The Group’s interest rate swaps qualifies as a fair value hedge as the risk being hedged is the possible change in the fair value of a recognised liability. Hedge accounting is applied. The change in the fair value of the interest rate swap (the hedging instrument) is recognised in profit or loss under Finance income or Finance costs. The change in the fair value of the hedged item (the bond) attributable to the risk being hedged is recognised as part of the carrying amount of the hedged item and is also recognised in profit or loss under Finance income or Finance costs. The gain or loss relating to the ineffective portion is recognised in profit or loss under Finance income or Finance costs. The unamortised fair value is recognised in profit or loss if the hedged item is derecognised. Fair value measurement takes current market data into account. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value. Measurement is categorised as Level 2 in the fair value hierarchy as it is based on directly observable market data. 138 FINANCIAL STATEMENTS 4.5 Liquidity risk Liquidity risk – low exposure Liquidity risk results from the Group’s potential inability or difficulty in meeting the contractual obligations associated with its financial liabilities due to insufficient liquidity. Risk management policy Maintain an appropriate level of short- and long-term liquidity reserves (liquid funds and committed credit facilities) Maintain a smooth maturity profile in terms of different maturities Maintain access to diversified funding sources Maintain a duration of gross debt above 2 years Mitigation Raising capital is managed centrally by Group Treasury to ensure efficient liquidity management Group Treasury monitors the risk of insufficient liquidity on a daily basis Liquidity is transferred to/from ISS Global A/S, which operates as the Group’s internal bank For day-to-day liquidity management cash pools have been established in the majority of the local entities No financial covenants in our main Group facilities (certain covenants apply to the local loan facility in Türkiye) 4.5.1 Financial liabilitiesContractual maturities (DKKm) Carrying amount Contractual cash flows < 1 year 1-2 years 2-3 years 3-4 years 4-5 years > 5 years 2024 Bonds and bank loans 15,877 16,859 4,256 3,984 4,683 145 3,791 - Lease liabilities 2,464 2,792 939 676 461 291 166 259 Trade payables and other 4,486 4,486 4,486 - - - - - Derivatives 19 19 19 - - - - - Total financial liabilities 22,846 24,156 9,700 4,660 5,144 436 3,957 259 2023 Bonds and bank loans 14,384 14,998 2,725 3,905 3,852 4,516 - - Lease liabilities 2,335 2,572 1,028 564 382 235 126 237 Trade payables and other 4,979 4,979 4,979 - - - - - Derivatives 63 63 63 - - - - - Total financial liabilities 21,761 22,612 8,795 4,469 4,234 4,751 126 237 The contractual maturities of financial liabilities above are based on the undiscounted contractual cash flows, i.e. includ-ing interest payments estimated based on market expectations at 31 December. The risk implied from the values reflects the one-sided scenario of cash outflows only. Trade payables and other financial liabil-ities are mainly used to finance operating assets such as trade receivables and property and equipment. Maturity profile– nominal values The maturity profile of the Group’s current financing, i.e. issued bonds, bank loans and committed bank facilities (excluding interest payments) is illustrated in the chart to the right. DKKbn Revolving Credit Facility (undrawn) EMTNs/Bank loans 4.5.2 Liquidity reserves (DKKm) 2024 2023 Cash and cash equivalents 6,829 6,093 Hereof restricted cash (35) (46) Unused revolving credit facilities 6,712 6,708 Liquidity reserves 13,506 12,755 Not readily available (751) (686) Readily available liquidity 12,755 12,069 Cash and cash equivalentreflects the strong liquidity position of the Group. The level is typically highest at 31 December and not a representative level for the rest of the year. Restricted cashDKK 35 million of the total cash and cash equivalents at 31 December 2024 was placed on blocked or restricted bank accounts due to legal cases or tax-related circumstances. Unused revolving credit facilitiesThe Group has a EUR 900 million committed revolving credit facility maturing in June 2029 with a one year extension option. In addition, uncommitted credit facilities are available in countries and at Group level, which are not considered part of the readily available liquidity. At 31 December 2024, these amounted to DKK 4.2 billion of which DKK 0.0 billion was drawn (2023: DKK 3.9 billion of which DKK 0.1 billion was drawn). Not readily availableCash is considered readily available when upstreaming to the parent company (ISS A/S) is possible within five days. In a number of countries, transfer to ISS A/S is assessed to take more than five days due to local administrative processes, and thus such cash is not deemed readily available. 139 FINANCIAL STATEMENTS 4.6 Currency risk Currency risk – low exposure Currency risk arises from changes in exchange rates, and affects the Group’s result, investments or value of financial instruments. The Group’s exposure to currency risk on transaction level is low since income, costs and investments are in the same functional currency country-by-country. Currency risk therefore predominantly arises from funding and investments in subsidiaries. Risk management policy It is Group policy to pool funding activities centrally and fund investments in subsidiaries through a combination of intercompany loans and equity Currency risk on intercompany loans is generally hedged against DKK or EUR when exposure exceeds DKK 5 million. Some currencies cannot be hedged within a reasonable price range why correlation to a proxy currency is considered and, if deemed appropriate, proxy hedging is applied Exposure to EUR is monitored but not hedged due to the fixed rate exchange policy between DKK/EUR Currency risk on net investments are as a main policy not hedged Mitigation Currency swaps are used to hedge currency risk on borrowings (external), intercompany balances and long-term receivables (external) Currency exposure on borrowings (external), intercompany balances and cash and cash equivalents is measured at least on a weekly basis 4.6.1 Borrowings Sensitivity (DKKm) Currency exposure (nominal) Currency swaps (contractual) Exposure, net Increase in FX Profit or loss Equity 2024 EUR/DKK (13,310) 10,737 (2,573) 1% (26) (26) TRY/DKK 1) 371 - 371 30% 45 111 USD/DKK 968 (1,215) (247) 10% (25) (25) Other/DKK (429) 835 406 10% 41 41 Total (12,400) 10,357 (2,043) 2023 EUR/DKK (17,593) 8,104 (9,489) 1% (95) (95) TRY/DKK 1) 322 - 322 30% 71 97 USD/DKK 1,043 (1,200) (157) 10% (16) (16) Other/DKK (957) 1,352 395 10% 40 40 Total (17,185) 8,256 (8,929) 1)TRY is not hedged due to high costs of hedging. Foreign currency sensitivityA change in relevant currencies, with all other variables held constant, would have impacted profit or loss and equity with the amounts above. The analysis is based on the Group’s internal monitoring of currency exposure on borrowings, inter-company loans, external long-term receivables, cash and cash equivalents as well as accrued royalties (Group internal). The impact on profit or loss related to a change in TRY is adjust-ed for the translation effect related to receivables considered part of the net investment in Türkiye. Change in average FX rates 2024 2023 TRY (29.6)% (30.7)% GBP 2.8% (1.8)% CHF 2.1% 3.4% USD (0.0)% (2.7)% AUD (0.6)% (6.7)% NOK (1.8)% (11.4)% SEK 0.5% (7.2)% HKD 0.3% (2.7)% EUR 0.1% 0.2% ( ) = Weakened against DKK 4.6.2 Translation riskImpact on profit or lossIn 2024, changes in average FX rates resulted in a decrease in Group revenue of DKK 587 million or 0.7% (2023: decrease of DKK 2,476 million or 3.4%) and a decrease of the Group’s oper-ating profit before other items of DKK 73 million or 2.2% (2023: decrease of DKK 175 million or 5.9%), including the impact of hyperinflation in Türkiye. Excluding hyperinflation impact, changes in average FX rates resulted in a decrease in Group revenue of DKK 1,346 million or 1.7% (2023: decrease of DKK 2,320 million or 3.1%) and a decrease of the Group’s operating profit before other items of DKK 109 million or 3.3% (2023: decrease of DKK 157 million or 5.3%). Foreign currency sensitivity A 10% change (TRY: 30% and EUR: 1% change) in relevant currencies, with all other variables held constant, would have impacted profit or loss with the amounts below. (DKKm) Revenue Operating profit before other items TRY 1,986 132 GBP 1,137 47 CHF 705 60 USD 662 32 AUD 502 43 NOK 373 31 SEK 311 20 HKD 242 16 EUR 239 14 Other 1,071 46 Total 7,228 441 140 FINANCIAL STATEMENTS 5 Tax Our commitment ISS is committed to comply with applicable rules and regu- lations in the countries where we operate and to ensuring accurate and timely tax payments. We adopt a compliant and transparent approach to tax and tax planning, and we do not tolerate evasion of income taxes, payroll taxes, social charges, etc. For the benefit of society, our employees, and customers, we support governmental and industry-specific initiatives that introduce tighter controls and sanctions to ensure that compa- nies in our industry play by the rules. The right balance We acknowledge our responsibility to safeguard our share- holders’ interests. Through efficient management and strategic planning of tax payments, we maintain a competitive effective tax rate and aim to limit double taxation to the extent possible. Our approach to tax risks ISS maintains a conservative stance towards tax risks. We con- sistently oversee and address tax risks to the extent possible. We do not, and will not, employ aggressive tax strategies to enhance our tax position. Transfer pricing Intercompany transactions are carried out based on market terms (arms’ length principles) and adhere to current OECD guidelines for internal transfer pricing. Cross-border transac- tions primarily include royalty payments, management fees, and financing. Transfer pricing is typically viewed as the tax area with the greatest risk for the ISS Group and may be sub- ject to very complex tax audits. Tax payments In 2024, income tax paid was DKK 462 million (2023: DKK 428 million) resulting in a cash tax rate of 14.0% (2023: 16.9%). Tax payments comprised corporate income taxes due in 2024, including state and withholding taxes. Withholding taxes are recorded as paid in the country that bears the cost. In addition to corporate income taxes, ISS also contributes with payment of payroll taxes, including social charges, and VAT in the countries where we operate. In this section: 5 .1 Income tax 5 .2 Deferred tax Tax payments 462 DKKbn 18% Denmark 11% Switzerland 10% Belgium 0 9% Australia 0 9% Norway 0 6% Finland 0 5% Spain 0 4% Mexico 28% Other countries 141 FINANCIAL STATEMENTS 5.1 Income tax 5.1.1 Tax expense and effective tax rate Tax in profit or loss (DKKm) 2024 2023 Current tax 658 487 Deferred tax 59 66 Prior year adjustments, net (59) 1 Income tax 658 554 Effective tax rate (DKKm) 2024 2023 Statutory income tax rate, Denmark 22.0 % 22.0 % Foreign tax rate differential, net 0.4 % 0.0 % Total 22.4 % 22.0 % Non-tax-deductible expenses less non-taxable income (1.3)% 1.0 % Prior year adjustments, net (1.8)% 0.0 % Change in valuation of tax assets, net (2.9)% (3.9)% Changes in tax rates 0.0 % 0.4 % Hyperinflation 1.1 % 1.1 % Other taxes 2.4 % 1.3 % Effective tax rate 20.0 % 21.9 % Development in 2024Income tax amounted to DKK 658 million (2023: DKK 554 million), resulting in an effective tax rate of 20.0% (2023: 21.9%). The effective tax rate was favourably influenced by interest limitation rules and release of valuation allowances on deferred tax assets in Germany, whereas hyperinflation adjustments (IAS 29) in Türkiye impacted negatively. Non-tax-deductible expenses less non-taxable incomecomprised various income and expenses. In 2024, the net position was driven mainly by the positive impact of interest limitation rules in Denmark. Change in valuation of tax assets, netrelated mainly to release of valuation allowance on tax losses in Germany due to expected improvements in future profitability (2023: Netherlands and Germany). Hyperinflation related to the hyperinflation adjustment in Türkiye. Other taxesmainly comprised withholding tax, e.g. in Denmark. OECD Pillar Two The Group is subject to the OECD Pillar Two rules, which aim to ensure that multinational enterprises (MNEs) pay a minimum level of tax. Denmark, where ISS A/S is incorporated, has enacted Pillar Two legislation, which took effect on 1 January 2024. The Group applies the IAS 12 exception, allowing it to avoid recognising or disclosing deferred tax assets and liabilities related to Pillar Two income taxes. Under the new legislation, the Group will be obligated to pay a top-up tax for any subsidiary that does not meet the Pillar Two minimum effective tax rate of 15%. However, the new rules include a set of “Transitional Safe Harbor” exemptions that lessen the requirement to submit a full Pillar Two minimum tax calculation, provided the Group meets at least one of the three Safe Harbor tests. In 2024, the Group can leverage these Safe Harbor exemptions where it operates based on the tests and no or minimal top-up tax will need to be paid. Management has evaluated the impact of the Pillar Two legislation and anticipates that during future years it may increase the Group’s annual effective tax rate by approximately 0.5 to 1.0 percentage points, depending on future developments and the Group’s evolving tax position. This evaluation is based on the current understanding of the legislation and the Group’s existing tax positions. The Group will continue to monitor developments and ensure compliance with the new requirements. 142 FINANCIAL STATEMENTS 5.2 Deferred tax 5.2.1 Recognised deferred tax (DKKm) 2024 2023 Tax losses carried forward 587 561 Goodwill 4 4 Customer contracts 7 7 Property and equipment (incl. right-of-use) 235 176 Provisions, lease and other liabilities 1,006 981 Pensions 195 157 Set-off within legal tax units/jurisdictions (1,149) (924) Total assets 885 962 Goodwill 420 423 Brands 350 350 Customer contracts 255 187 Property and equipment (incl. right-of-use) 579 487 Provisions, lease and other liabilities 581 692 Pensions 97 82 Tax losses in foreign subsidiaries under Danish joint taxation 23 23 Set-off within legal tax units/jurisdictions (1,149) (924) Total liabilities 1,156 1,320 Development in deferred tax (DKKm) 2024 2023 Liabilities, net at 1 January 358 266 Prior year adjustments, net (31) 18 FX adjustments 21 26 Hyperinflation restatement 23 (4) Acquisitions/divestments, net 19 (2) Actuarial (gain)/losses on pensions (36) (33) Reclass to Assets/(Liabilities) held for sale - 21 Tax on profit before tax 59 66 Reclass (142) - Liability, net at 31 December 271 358 Prior year adjustments, netmainly related to adjustment of tax deductions (temporary differences) in the final tax returns. Acquisitions/divestments, netin 2024 related mainly to adjust-ments to previous years divestments. Reclassrelated to uncertain tax positions being reclassified from deferred tax to tax payables. 5.2.2 Unrecognised deferred tax assetsAt 31 December 2024, the Group had unrecognised deferred tax assets which comprised tax losses carried forward and other deductible temporary differences of DKK 952 million (2023: DKK 1,032 million) mainly related to Germany. Accounting estimates Deferred tax assetsrelating to tax losses carried forward are recognised, when management assesses that these can be offset against positive taxable income in the foreseeable future. The assessment is made at the reporting date taking into account the impact from limitation in interest deductibility and local tax restrictions in utilisation of tax losses. Future taxable income is based on financial forecasts approved by management and expectations for operational development, mainly in terms of organic growth and operating margin, i.e. the cash flow projections made for the purpose of the Group’s impairment tests, see 3.2, Impairment tests. These represent management’s best estimates, but are by nature associated with significant uncertainty. Uncertain tax positionsAs part of operating a global business, disputes with tax authorities around the world may occur. Management periodically evaluates positions taken in tax returns with respect to situations where applicable tax regulation is subject to interpretation and considers whether it is probable that a tax authority will accept an uncertain tax treatment. The possible outcome of uncertain tax positions is measured based on management’s best estimate of the amount required to settle the obligation and recognised in tax payables or income tax depending on the tax position. Management believes that the provisions made are adequate. However, the actual obligations may deviate as they depend on the result of litigations and settlements with the relevant tax authorities. Accounting policy Deferred tax is provided using the liability method on temporary differences between tax bases of assets and liabilities and their carrying amounts, except for goodwill which is not deductible for tax purposes. Where alternative taxation rules can be applied to determine the tax base, deferred tax is measured according to management’s intended use of the asset or settlement of the liability. Deferred tax is measured according to the taxation rules and tax rates in the respective countries applicable at the reporting date when the deferred tax becomes current tax. Deferred tax assets, including the tax base of tax loss carry forwards, are recognised in non-current assets at the expected value of their utilisation, either as a set-off against tax on future income, or as a set-off against deferred tax liabilities in the same legal tax entity and jurisdiction. The Group has applied the mandatory exception for recognition and disclosure of deferred tax assets and liabilities arising from Pillar Two Income taxes. 143 FINANCIAL STATEMENTS 6 Remuneration At ISS, remuneration is based on responsibilities, competencies and performance and is designed to be competitive, affordable and in line with market practice of comparable listed companies. Remuneration elements Remuneration of the members of the Executive Group Management (EGM) consists of an annual base salary (fixed), customary benefits and certain variable elements. The annual base salary primarily serves the purpose of being able to attract and retain high-performing leaders. In addition, the members of the EGM may receive variable remuneration, which shall be based on performance and accountability in relation to established objectives, both short and long-term, as well as the overall performance of ISS in alignment with the shareholders. Short-term incentive programme To drive delivery of short-term financial results and implementation of the OneISS strategy, including progression on the ESG agenda, the Group has implemented a short-term incentive programme (STIP) allowing members the opportunity to earn a cash bonus. The bonus is measured annually and subject to achieving certain financial and non-financial KPIs. Long-term incentive programme To drive delivery of long-term financial results, retention of leaders and alignment to shareholder value creation, the Group has implemented two share-based incentive programmes: long-term incentive programme (LTIP) special incentive programme (SIP) Under both LTIP and SIP, members are granted a number of share units, which each entitles the holder to one share at no cost, subject to achievement of certain performance, service or individual criteria. For LTIP, the share units (PSUs) will vest after three years. For SIP, the share units (RSUs) will vest after 18 months. Performance criteria for LTIP 2021 were achieved, and the programme vested at 64% in March 2024. Based on annual EPS and TSR performances for 2022, 2023 and 2024, 75% of the PSUs under the LTIP 2022 will vest in March 2025. Based on individual service criteria, 100% of the RSUs under the SIP 2023 will vest in March 2025. In this section: 6 .1 Management remuneration 6 .2 Share-based payments Incentive programmes Vesting of LTIP 1) 1) Will vest in March 2025 Vesting of SIP 1) 1) 1) SIP 2023 will vest in March 2025. and SIP 2024 in March 2026 Remuneration report Our 2024 Remuneration Report includes a description of the work of our Remuneration Committee and our remuneration policy. In addition, a specification of remuneration to the members of the Executive Group Management Board and the Board of Directors is included. 144 FINANCIAL STATEMENTS 6.1 Management remuneration 6.1.1 Key management personnel EGM (DKK thousand) Board EGMB Corporate Senior Officers 2024 Base salary and non-monetary benefits 9,121 11,776 38,523 Annual bonus (STIP) - 10,707 21,556 Sign-on bonus - 1,552 - Pensions - 1,113 2,086 Share-based payments - 5,117 13,943 Severance payments 257 - 1,461 Total 9,378 30,265 77,569 2023 Base salary and non-monetary benefits 9,176 13,484 50,671 Annual bonus (STIP) - 7,176 15,709 Sign-on bonus - - 11,658 Pensions - 386 3,916 Share-based payments 1) - (4,603) 18,664 Severance payments - - 16,161 Total 9,176 16,443 116,779 1)Including a cost reversal of DKK 7 million due to forfeited PSUs as the Group CEO Jacob Aarup-Andersen left ISS. The Executive Group Management (EGM) comprises the Executive Group Man-agement Board (EGMB) and Corporate Senior Officers of the Group. Members of the EGM have authority and responsibility for planning, implement-ing and controlling the Group’s activities and are together with the Board of Directors (Board) considered as the Group’s key management personnel. On 3 June 2024, Mads Holm joined ISS as Group CFO. In the period until 31 July 2024, the EGMB comprised only one member, the Group CEO. Remuneration policy is described in the Remuneration report which is available here 6.2 Share-based payments 6.2.1 Long-term incentive programmeMembers of the EGM and other senior officers of the Group are granted a number of performance share units (PSUs) under the annual LTIP. Participants are compensated for any dividend distributed between time of grant and time of vest-ing. Upon vesting, each PSU entitles the holder to receive one share at no cost. Subject to certain criteria, the PSUs will vest after three years. In 2024, the Group recognised a cost of DKK 93 million (2023: DKK 72 million) related to share-based payment programmes (see overview below for PSUs and overview in 6.2.2, Special incentive programmes (SIP) for RSUs) with a corresponding increase in equity. Fair value and profit or loss impact LTIP 2021 1) LTIP 2022 LTIP 2023 LTIP 2024 Fair value(DKKm) At grant date 116 129 116 113 At 31 December 2024 - 93 95 105 Profit or loss impact(DKKm) Recognised in 2024 7 35 26 21 Not yet recognised - 4 29 62 PSUs and participants(number) Participants 122 140 147 132 PSUs granted 1,362,540 1,448,791 1,011,072 1,171,299 PSUs expected to vest (of outstanding PSUs), % 64% 75% 44% 51% 1)Vested in March 2024. Fair value assumptions LTIP 2021 LTIP 2022 LTIP 2023 LTIP 2024 At the time of grant Share price, DKK 1) 111-153 117-153 122-153 124-127 Expected volatility 2) 41.2 % 42.3 % 33.8 % 32.8 % Expected life of grant, years 3 3 3 3 Risk-free interest rate 2) (0.6) %-0.9 % (0.1%)-1.5 % 1.0%-3.1% 0.8%-4.2% 1)Based on five-day average. 2)Based on observable market data for peer groups. 145 FINANCIAL STATEMENTS 6.2 Share-based payments (continued) Vesting criteriaThe vesting criteria are total shareholder return (TSR), meas-ured relative to peer group performance, and earnings per share (EPS). The weight of the individual criteria are: TSR: 40 % EPS: 40 % Service-based objective: 20 % TSR criteria Threshold Vesting TSR Below threshold 0 % Below median of peers Threshold 25 % At median of peers Maximum 100 % At upper quartile of peers or better TSR peers are the Nasdaq Copenhagen OMX C25 and a peer group of comparable international service companies. Vested programmes In March 2024, the LTIP 2021 programme vested. Based on the annual EPS and TSR performances for 2021, 2022 and 2023, 64% of the granted PSUs vested at a weighted average price of DKK 126 at the date of exercise. After this vesting, no further PSUs are outstanding under the LTIP 2021 and the programme has lapsed. Furthermore, in March 2025, the PSUs granted under LTIP 2022 will vest with 75% based on the annual EPS and TSR performances for 2022, 2023 and 2024. Outstanding PSUs EGM LTIP 2021(vested in 2024) EGMB Corporate Senior Officers Other Senior Officers Total Outstanding at 1 January 2023 148,297 185,756 759,596 1,093,649 Granted 451 18,857 26,414 45,722 Forfeited (118,308) - (50,695) (169,003) Transferred - (57,053) 57,053 - Outstanding at 31 December 2023 30,440 147,560 792,368 970,368 Exercised (19,631) (95,162) (510,920) (625,713) Expired (10,809) (52,398) (281,448) (344,655) Outstanding at 31 December 2024 - - - - LTIP 2022(vesting in 2025) At 1 January 2023 139,713 237,859 842,534 1,220,106 Granted 516 17,149 57,460 75,125 Forfeited (105,396) (6,085) (102,561) (214,042) Transferred - (58,320) 58,320 - Outstanding at 31 December 2023 34,833 190,603 855,753 1,081,189 Granted 646 3,536 15,629 19,811 Forfeited - (13,648) (27,653) (41,301) Outstanding at 31 December 2024 35,479 180,491 843,729 1,059,699 LTIP 2023(vesting in 2026) Granted 47,698 191,237 755,981 994,916 Forfeited - (17,357) (100,948) (118,305) Transferred - (30,068) 30,068 - Outstanding at 31 December 2023 47,698 143,812 685,101 876,611 Granted 883 2,668 12,605 16,156 Forfeited - (13,823) (48,084) (61,907) Outstanding at 31 December 2024 48,581 132,657 649,622 830,860 LTIP 2024(vesting in 2027) Granted 115,713 163,197 892,389 1,171,299 Forfeited - (19,452) (60,697) (80,149) Outstanding at 31 December 2024 115,713 143,745 831,692 1,091,150 146 FINANCIAL STATEMENTS 6.2 Share-based payments (continued) 6.2.2 Special incentive programmes (SIP)The Group has a Special Incentive Programme (SIP) under which Restricted Share Units (RSUs) are granted to certain EGM members and Other senior officers of the Group. Subject to individual service criteria, the RSUs will vest after 1.5 years. Upon vesting, each RSU entitles the holder to receive one share at no cost. In 2024, a total of 72,772 RSUs were granted to the new Group CFO and certain Other Senior Officers under the SIP 2024 programme. Vested programmes No SIP programmes have vested in 2024. In March 2025, the RSUs granted under the SIP 2023pro-gramme will vest 100% subject to achievement of individual service criteria. Fair value and profit or loss impact SIP 2023 SIP 2024 Fair value(DKKm) At grant date 1 9 At 31 December 2024 1 9 Profit or loss impact(DKKm) Recognised in 2024 1 3 Not yet recognised - 6 RSUs and participants(number) Participants 4 6 RSUs granted 10,365 72,772 RSUs expected to vest, % 100% 100% Fair value assumptions SIP 2023 SIP 2024 At the time of grant Share price, DKK 122 124-127 Expected life of grant, years 1.5 1.5 Outstanding RSUs SIP 2023(vesting in 2025) EGMB Other Senior Officers Total Granted - 10,178 10,178 Outstanding at 31 December 2023 - 10,178 10,178 Granted - 187 187 Outstanding at 31 December 2024 - 10,365 10,365 SIP 2024(vesting in 2026) Granted 3,003 69,769 72,772 Outstanding at 31 December 2024 3,003 69,769 72,772 Accounting policy The value of services received in exchange for granted performance-based share units (PSUs) and restricted share units (RSUs) are measured at fair value at the grant date and recognised in employee costs over the vesting period with a corresponding increase in equity, as both schemes are equity-settled. The fair value of granted PSUs under the long-term incentive programme is measured using a generally accepted valuation model taking into consideration the terms and conditions upon which the PSUs were granted including market-based vesting conditions (Total Shareholder Return (TSR)), see Vesting criteria in 6.2.1. Fair value assumptions are disclosed in the tables in 6.2.1 and 6.2.2. On initial recognition, an estimate is made of the number of PSUs and RSUs expected to vest. The estimated number is revised for changes in the number of PSUs and RSUs expected to vest due to non-market based vesting conditions. 147 FINANCIAL STATEMENTS 7 Other required disclosures In this section: 7 .1 Pensions and similar obligations 7 .2 Hyperinflation in Türkiye 7 .3 Related parties 7 .4 Fees to auditors 7 .5 Subsequent events 7.1 Pensions and similar obligations 7.1.1 Pension schemes The Group has a significant number of pension schemes with different characteristics. The majority of the schemes are defined contribution plans, but in a number of countries, the Group is also party to defined benefit plans. Defined contribution plans Under these schemes contributions are paid to a publicly or privately administered pension plans. The Group has no further payment obligations once the contributions have been paid. In 2024, contributions amounted to DKK 1,249 million (2023: DKK 1,161 million), or 84% of the Group’s pension costs (2023: 83%). Defined benefit plans Under these schemes the obligation towards the employees and risk associated with future developments in salary, interest rate, inflation, mortality, etc. rests with the Group. The plans are primarily based on years of service, and benefits are deter- mined on the basis of salary and position. The majority (93%) of the obligations are funded with assets placed in independent pension funds. In some countries, pri- marily Türkiye, Sweden, Hong Kong and Mexico, the obligation is unfunded. For unfunded plans, the obligation amounted to DKK 728 million or 7% of the present value of the total gross obligation (2023: DKK 665 million or 8%). Multiemployer plans In the US and the Netherlands, the Group participates in multiem- ployer pension schemes that by nature are defined benefit plans. Due to the unavailability of necessary information, including in- formation on surplus or deficit if any, from the relevant funds, the Group account for the schemes as defined contribution plans. In 2024, the Group contributed DKK 74 million (2023: DKK 64 million) to multiemployer pension plans of which DKK 32 million (2023: DKK 27 million) related to the Netherlands and DKK 42 million (2023: DKK 37 million) to the US. In total, these corresponded to 6% of the Group’s total contribution to defined contribution plans (2023: 6%). 7.1.2 Major defined benefit plans The Group’s largest defined benefit plans: Switzerland Participants are insured against the financial consequences of: retirement; disability; and death The pension plans guarantee a minimum interest credit and fixed conversion rates at retirement and include a risk-sharing element between ISS and the plan participants. Contributions are paid by both ISS and the employees and the plans must be fully funded. In case of underfunding, recovery measures must be taken, such as additional financing from ISS or from ISS and the employees, reduction of benefits or a combination of both. Germany Participants are insured against the financial consequences of: retirement; disability; and death The majority of the pension plans guarantee a life-long monthly pension payment after retirement. Most of the plans are closed for new entrants. Contributions are paid by ISS, and the plans do not include a risk-sharing element. UK Participants are insured against the financial consequences of: retirement; and death The pension plans guarantee a defined benefit pension at re- tirement on a final salary basis, but do not provide any insured disability benefits. The majority of the plans does not include a risk-sharing element between ISS and the plan participants. Pension obligation, gross – by country 9.7 DKKbn 72% Switzerland 10% Germany 0 8% UK 10% Other Pension obligation, gross – funded vs. unfunded 9.7 DKKbn 93% Funded 0 7% Unfunded Pension costs 1.5 DKKbn 79% Defined contribution 16% Defined benefit 0 5% Multiemployer 148 FINANCIAL STATEMENTS 7.1 Pensions and similar obligations (continued) 7.1.3 Defined benefit plans, net obligation 2024 2023 (DKKm) Obligation (present value) Plan assets (fair value) Total Obligation (present value) Plan assets (fair value) Total At 1 January 8,755 9,338 (583) 7,953 8,663 (710) Current service costs 208 - 208 199 - 199 Interest on obligation/plan assets 216 183 33 257 233 24 Past service costs (2) - (2) 18 - 18 Recognised in profit or loss 422 183 239 474 233 241 Remeasurement (gain)/loss: Demographic assumptions (13) - (13) (7) - (7) Financial assumptions 254 - 254 399 - 399 Experience adjustments (39) - (39) 90 - 90 Return on plan assets - 62 (62) - 20 (20) Asset ceiling - (28) 28 - 299 (299) Recognised in Other comprehensive income 202 34 168 482 319 163 FX adjustments (65) (58) (7) 328 501 (173) Contributions, plan participants 179 179 - 173 173 - Contributions, employer - 237 (237) - 260 (260) Benefits paid (548) (470) (78) (605) (512) (93) Asset ceiling - 28 (28) - (299) 299 Acquisitions/divestments, net 150 165 (15) - - - Reclass 641 355 286 (50) - (50) Other changes 357 436 (79) (154) 123 (277) At 31 December 9,736 9,991 (255) 8,755 9,338 (583) Recognised in the statement of financial position (DKKm) 2024 2023 Carrying amount of defined benefit plans (255) (583) Accumulated impact from asset ceiling 1) 1,207 1,172 Defined benefit obligation, net 2) 952 589 Other long-term employee benefits 364 546 Pensions and similar obligations 1,316 1,135 1) Including an FX adjustment on the opening balance of DKK 7 million (2023: DKK 119 million). 2) Including an asset of DKK 391 million (2023: DKK 326 million) related to defined benefit plans in the UK. Development in 2024 The net pension liability increased by DKK 363 million in 2024, mainly due to a prior year adjustment in Germany, see 7.1.4 below. Additionally, the net impact from actuarial calculations was a loss of DKK 168 million, mainly stemming from actuarial losses of DKK 254 million due to decreased discount rates (financial assumptions), primarily in Switzerland. This was partly offset by a net positive return on plan assets of DKK 62 million as market conditions for our plan assets in Switzerland (mainly listed shares and bonds) improved compared to 2023, resulting in a gain of DKK 212 million. However, in the UK a loss on plan assets of DKK 157 million was realised and thus significantly reducing the positive impact. In recent years, we have experienced strong asset returns and actuarial gains, which led to a significant surplus on the major plans in Switzerland and the UK. Due to surplus restrictions (ISS does not have access to the overfunding), a significant asset ceiling has been recognised in prior years. In 2024, the net change in the asset ceiling was an increase of DKK 28 million (2023: decrease of DKK 299 million) resulting in an accumulated impact from the asset ceiling of DKK 1,207 million by the end of 2024 (2023: DKK 1,172 million). Contributions in 2024 In 2024, the Group contributed DKK 315 million to defined benefit plans (2023: DKK 353 million). The Group expects to contribute DKK 318 million in 2025. 7.1.4 Reimbursement rights in Germany In 2024, the contractual terms of a specific pension plan in Ger- many were reassessed, which resulted in recognition of a gross obligation of DKK 641 million, plan assets of DKK 355 million and a reimbursement right of DKK 286 million. The reimbursement right does not qualify for recognition as a plan asset and has therefore been reported in Other financial assets. The net impact of the adjustment on the Group’s balance sheet is neutral. Accounting policy Defined contribution plansThe Group’s contributions are recognised in Employee costs when the related service is provided. Defined benefit plansThe Group’s net obligation is calculated by a qualified actuary using the projected unit credit method, separately for each plan by estimating the amount of future benefits that employees have earned in return for their service in the current and prior periods. The present value less the fair value of plan assets is recognised in Pensions and similar obligations. If the calculation results in a net asset, the asset is recognised if it offsets refunds from or leads to reduced future contributions to the plan. Consideration is given to applicable minimum funding requirements. Pension costs are calculated based on actuarial estimates and financial expectations at the beginning of the year. Service costs are recognised in Employee costs and net interest is recognised in Finance costs. Remeasurements (actuarial gains/losses), comprising the differences between the expected development in pension assets and liabilities and the realised amounts at the reporting date as well as the effect of asset ceiling are recognised in other comprehensive income. When the benefits are changed or a plan is curtailed, the resulting change in benefits that relates to past service or the gain or loss on curtailment is recognised in Employee costs. Gains and losses on settlements are recognised when incurred. The aggregated value of unfunded plans is presented as a net liability and the aggregated value of funded plans are presented as a net asset. Multiemployer plansThe Group does not have the necessary information to account for the schemes as defined benefit plans, and they are therefore accounted for as defined contribution plans. Other long-term employee benefitsare calculated as defined pension plans, except that actuarial gains and losses are recognised in Employee costs. Other long-term employee benefits comprise jubilee benefits, long-service or sabbatical leave, etc. 149 FINANCIAL STATEMENTS 7.1 Pensions and similar obligations (continued) 7.1.5 Plan assets (DKKm) Switzer- land UK Ger- many Other Total 2024 Investment funds: Listed shares 3,036 - - - 3,036 Corporate bonds 1,738 - - - 1,738 Property 1,729 - - - 1,729 Other 1,209 23 40 - 1,272 Corporate bonds 1) - 700 159 - 859 Government bonds - 362 - - 362 Cash/cash equivalents 235 123 11 - 369 Insurance contracts 226 - - 156 382 Listed shares 1) - 1 113 - 114 Other - - 88 42 130 Total 8,173 1,209 411 198 9,991 2023 Investment funds: Listed shares 2,926 - - - 2,926 Corporate bonds 1,755 - - - 1,755 Property 1,781 - - - 1,781 Other 1,076 302 - - 1,378 Corporate bonds 1) - 544 - - 544 Cash/cash equivalents 41 250 - - 291 Insurance contracts 258 - - 139 397 Listed shares 1) - 1 - - 1 Other - 186 47 32 265 Total 7,837 1,283 47 171 9,338 1) Traded in active markets (listed). The majority of the Group’s pension obligations are funded with assets placed in independent pension funds (unlisted), mainly in Switzerland, the UK and Germany. Plan assets are predominantly placed in investment funds that invest in listed shares, corporate bonds, property or other, such as investments in infrastructure and energy projects and senior loans. 7.1.6 Actuarial assumptions CHF GBP EUR Other countries 2024 Discount rates 1.0% 5.5-5.6% 3.5-4.2% 3.0-28.5% Salary increase 1.0% 0.0-5.0% 0.0-3.2% 2.0-25.0% Pension increase 0.0% 2.7-3.0% 0.0-1.9% 0.0-1.9% Price inflation 1.0% 2.5-2.8% 0.0-2.2% 0.0-3.5% 2023 Discount rates 1.5% 4.5% 3.3-4.3% 5.7-26.6% Salary increase 1.1% 0.0-3.1% 0.0-3.6% 3.0-24.3% Pension increase 0.0% 2.6-3.0% 0.0-2.8% 0.0-1.8% Price inflation 1.1% 2.4-2.6% 0.0-2.6% 0.0-3.5% Sensitivity analysis The sensitivities related to significant actuarial assumptions used in the calculation of the defined benefit obligation in terms of estimated increase/(decrease) in the obligation are illustrated below. The analysis is based on changes in assumptions, with all other variables held constant, that the Group considered to be rea- sonably possible at the reporting date. 2024 2023 (DKKm) +0.5% (0.5)% +0.5% (0.5)% Discount rate (421) 491 (376) 409 Price inflation 82 (37) 64 (55) Salary increase 98 (61) 76 (76) Pension increase 259 (213) 241 (236) +1 year -1 year +1 year -1 year Life expectancy 206 (166) 147 (144) Duration The estimated weighted average duration of the defined bene- fit obligation was 10 years (2023: 9 years) and is split into: (Years) 2024 2023 Active employees 9 8 Retired employees 12 12 Deferred vested 1) 15 15 Total employees 10 9 1) The impact from deferred vested on total estimated weighted average duration is minor due to the fact that deferred vested make up less than 2% of the participants, and do not exist in many of the shorter duration plans. Plan assets – by category 10.0 DKKbn 78% Investment fonds 0 8% Corporate bonds 0 4% Government bonds 0 4% Cash and cash equivalents 0 4% Insurance contracts 0 1% Listed shares 0 1% Other Plan assets – by country 10.0 DKKbn 82% Switzerland 12% UK 0 4% Germany 0 2% Other Accounting estimates Actuarial calculations and valuations are performed annually for all major plans. The present value of defined benefit obligations is determined based on country-specific assumptions about the future development in variables such as salary levels, interest rates, inflation, mortality and guaranteed benefits. Assumptions are assessed at the reporting date. The discount rates used for calculating the present value of expected future cash flows are based on the market yield of high-quality corporate bonds or government bonds with a maturity approximating to the terms of the defined benefit obligations. 150 FINANCIAL STATEMENTS 7.2 Hyperinflation in Türkiye 7.2.1 Impact on the consolidated financial statements Inflation restatement, in year (DKKm) Total (excl. IAS 29) Non-monetary Profit or loss Retransla-tion (YE FX) Total adjust-ments Total 2024 Profit or loss Revenue 83,005 - 943 (187) 756 83,761 Operating profit before other items 4,155 (78) 80 (14) (12) 4,143 Operating profit 3,923 (99) 79 (14) (34) 3,889 Net profit 2,592 (3) - (0) (3) 2,589 Financial ratios Organic growth (non-IFRS) 6.3% - - - - 6.3% Operating margin (non-IFRS) 5.0% (0.1)% 0.0% 0.0% (0.1)% 4.9% Cash flows Operating activities 3,729 - - (2) (2) 3,727 Investing activities (1,537) - - 1 1 (1,536) Financing activities (1,410) - - 5 5 (1,405) Free cash flow (non-IFRS) 1,995 - - 1 1 1,996 2023 Profit or loss Revenue 78,683 - 1,130 (1,132) (2) 78,681 Operating profit before other items 3,348 (58) 90 (80) (48) 3,300 Operating profit 3,199 (73) 90 (78) (61) 3,138 Net profit 319 22 - (16) 6 325 Financial ratios Organic growth (non-IFRS) 9.7% - - - - 9.7% Operating margin 4.3% (0.1)% 0.1% (0.1)% (0.1)% 4.2% Cash flows Operating activities 3,433 - - (41) (41) 3,392 Investing activities (1,051) - - 9 9 (1,042) Financing activities (1,317) - - (17) (17) (1,334) Free cash flow (non-IFRS) 1,791 - - (16) (16) 1,775 (DKKm) Total (excl. IAS 29) Inflation restatement, accumulated Total 2024 Financial position Goodwill 19,509 992 20,501 Other intangible assets 3,453 405 3,858 Right-of-use assets, property and equipment 3,288 134 3,422 Total assets 49,110 1,531 50,641 Other comprehensive income 1) (948) 1,299 351 Other equity elements 11,466 96 11,562 Total equity 10,518 1,395 11,913 Deferred tax liabilities 1,020 136 1,156 Total equity and liabilities 49,110 1,531 50,641 2023 Financial position Goodwill 18,964 732 19,696 Other intangible assets 3,281 295 3,576 Right-of-use assets, property and equipment 3,017 109 3,126 Total assets 46,557 1,136 47,693 Other comprehensive income 1) (1,179) 936 (243) Other equity elements 10,666 99 10,765 Total equity 9,487 1,035 10,522 Deferred tax liabilities 1,219 101 1,320 Total equity and liabilities 46,557 1,136 47,693 1)In year impact of restatement amounted to DKK 477 million (2023: DKK 467 million). Development in 2024 In 2024, the impact of hyperinflation restatement on our three key KPIs, i.e. organic growth (non-IFRS), operating margin (non-IFRS) and free cash flow (non-IFRS) continued to be immaterial. The Group’s financial position continued to be significantly impacted. At 31 December 2024, goodwill had increased by DKK 992 million (2023: DKK 732 million), customer contracts had increased by DKK 405 million (2023: DKK 295 million) and equity had increased by DKK 1,395 million (2023: DKK 1,035 million) (accumulated hyperinflation adjustment impacts). During the year, the inflation rate decreased to 44.38% (2023: 64.77%) and the exchange rate for TRY/DKK decreased from 22.82 in the beginning of the year to 20.30 in December 2024, leading to an average rate of 20.97 (2023: 29.80). 151 FINANCIAL STATEMENTS 7.2 Hyperinflation in Türkiye (continued) Accounting policy Inflation restatement The financial statements of ISS Türkiye based on historical costs are restated for inflation to reflect the purchasing power at the reporting date using the consumer price index. Non-monetary itemssuch as goodwill, customer contracts, right-of- use assets, property and equipment and deferred tax, are restated for the effect of inflation based on changes in the price index for the period from initial recognition to 31 December 2024 or to the date of disposal, where relevant. The restatement was made effective from the time, the items were initially recognised, which was no earlier than 2005, when ISS first entered Türkiye through an acquisition. The restatement effect related to prior years is recognised in Other comprehensive income and current year effect is recognised in Finance income and costs. Management assesses whether the restatement of non-monetary items represents an indication of impairment to ensure that the restated amounts do not exceed the recoverable amounts of the assets, see 3.2, Impairment tests. Monetary itemssuch as receivables, payables and borrowings are not restated as these items already reflect the purchasing power at the reporting date. Equityincludes the opening effect of restating non-monetary items. The restatement effects based on in-year changes in the price index are recognised in other comprehensive income with set-off within finance income or costs in profit or loss. Profit or losstransactions are restated to reflect changes in the price index from the time of transaction to the end of the reporting period except for depreciation and amortisation, which are recalculated based on the inflation-adjusted carrying amounts. The restating gain or loss is recognised in finance income or costs, except for the tax effect, which is recognised in income tax. Cash flow statementOperating profit before other items includes a non-cash effect from the inflation restatement, and is eliminated in the line Non-cash items related to hyperinflation. Price index Restatement for hyperinflation of the financial statements of ISS Türkiye is based on the development in the consumer price index provided by the Türkiyish Statistical Institute calculated as an average year to date conversion factor. For 2024, the inflation rate in Türkiye was 44.38% (2023: 64.77%). In 2024, the conversion factor was 17% (2023: 31%). Retranslation from TRY to DKK The financial statements of ISS Türkiye, including effects of inflation restatement, are translated into DKK applying the TRY/DKK exchange rate at the reporting date as opposed to the Group’s normal practice of translating the profit or loss using the exchange rate at the transaction date or an average exchange rate for the month. The TRY/DKK exchange rate decreased from 22.82 at the beginning of 2024 to 20.30 at 31 December 2024. The average rate was 20.97 (2023: 29.80). 7.3 Related parties Parent and ultimate controlling party The Group’s parent, ISS A/S, is the ultimate controlling party. At 31 December 2024, ISS had no related parties with either control of the Group or significant influence in the Group. Key management personnel The Board of Directors (Board) and the Executive Group Man-agement (EGM) are considered the Group’s key management personnel as defined in 6.1, Management remuneration. Apart from remuneration, including share-based incentive pro-grammes, there were no significant transactions with members of the Board and the EGM in 2024. 7.4 Fees to auditors (DKKm) 2024 2023 Statutory audit 52 70 Other assurance services 5 2 Tax and VAT advisory services 2 6 Other services 3 8 Total 62 86 Fees for services other than the statutory audit of the financial statements provided by PricewaterhouseCoopers Statsautoris-eret Revisionspartnerselskab, Denmark mainly consist of other assurance opinions including limited assurance on the sustain-ability statement and agreed-upon procedures. Other assurance servicescomprised work related to the interim financial statements and other assurance services. The increase compared to 2023 related to ESG. Tax and VAT advisory servicesmainly related to tax compliance services. Other servicesmainly related to software implementation services. 7.5 Subsequent events No events have occurred subsequent to 31 December 2024, which are expected to have a material impact on the consoli-dated financial statements. 152 FINANCIAL STATEMENTS 8 Basis of preparation This section includes material accounting policies of a more general nature relevant for the understanding of the basis for preparation of the Group’s consolidated financial statements. Material accounting policies for specific accounting items are included in the relevant notes to the consolidated financial statements. A list of the notes is presented on p. 104. In 2024, no changes with material effect on recognition and measurement were implemented. In this section: 8 .1 Other material accounting policies 8 .2 In-year changes 8 .3 New regulations 8 .4 Group companies 8 .5 Definitions 8.1 Other material accounting policies ISS A/S is listed on Nasdaq Copenhagen. The consolidated finan-cial statements of ISS A/S for the year ended 31 December 2024 comprise ISS A/S and its subsidiaries (collectively, the Group). Significant subsidiaries are listed in 8.4, Group companies. The 2024 Annual Report for ISS A/S was discussed and ap-proved by the Executive Group Management Board and the Board of Directors on 20 February 2025 and issued for approv-al at the subsequent annual general meeting on 11 April 2025. Basis of preparationThe consolidated financial statements of the Group have been prepared in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act (class D). In addition, the consolidated financial statements have been prepared in compliance with the IFRS Accounting Standards issued by the IASB. The consolidated financial statements have been prepared on the basis that the Group will continue to operate as a going concern. The consolidated financial statements are presented in Danish kroner (DKK), which is ISS A/S’s functional currency. All amounts have been rounded to nearest DKK million (DKKm), unless otherwise stated. Fair value measurement and disclosureItems are measured at historical cost, except for plan assets un-der defined benefit plans, derivatives and contingent consider-ation that are measured at fair value. Fair value measurements are categorised within the fair value hierarchy and disclosed in the relevant notes. For the purpose of fair value disclosures, management has as-sessed that the fair values of cash and cash equivalents, trade receivables, trade payables and other current and non-current financial assets and liabilities approximates their carrying amount largely due to the short-term nature of these items. The fair value of borrowings, including methods and assumptions used to estimate the fair value, are disclosed in 4.2.1, Borrowings. MaterialityThe consolidated financial statements separately present items or groups of items that are considered material. In addition, information that is considered material, either individually or in combination with other information, is disclosed. Materiality is judged by reference to the size and nature of the item, either individually or combined. The deciding factor is whether the omission or misstatement could, individually or col-lectively, influence the economic decisions made by the primary users on the basis of the consolidated financial statements. Basis of consolidationThe consolidated financial statements comprise ISS A/S and entities controlled by ISS A/S. Consolidation is performed after elimination of intra-group balances, income and expenses. Unre-alised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. By virtue of agreement certain non-controlling shareholders are only eligible of receiving benefits from their non-controlling inter-est when ISS as controlling shareholder has received their initial investment and compound interest on such. In such instances the subsidiaries’ result and equity are fully allocated to ISS until the point in time where ISS has recognised amounts exceeding their investment including compound interest on such. Foreign currencyTransactions in currencies other than the functional currency of the respective Group companies are considered transactions denominated in foreign currencies. On initial recognition, foreign currency transactions are translated to the functional currencies of the Group compa-nies at the exchange rates at the transaction date. Translation differences between the exchange rates at the transaction date and the date of payment are recognised in Finance income or Finance costs. Monetary items denominated in foreign currencies are translated at the exchange rates at the reporting date. The difference between the exchange rates at the reporting date and at the transaction date or the exchange rate used in the latest financial statements is recognised in Finance income or Finance costs. On recognition in the consolidated financial statements of Group companies with a functional currency other than DKK, except for companies operating in hyperinflationary environ-ments, the statements of profit or loss and statement of cash flows are translated at the average exchange rates for the period and the statements of financial position are translated at the exchange rates at the reporting date. Foreign exchange adjustments arising on translation of the opening balance of equity of foreign entities and on translation of receivables considered part of the net investment in the entity and on translation of the profit or loss statements from the exchange rates at the transaction date to the exchange rates at the reporting date are recognised in other comprehensive income. However, if the foreign entity is a non-wholly owned subsidiary, the relevant proportion of the translation difference is allocated to the non-controlling interest. 153 FINANCIAL STATEMENTS 8.2 In-year changes Changes in accounting policiesFrom 1 January 2024, the Group has adopted certain new and amended standards with no significant impact on recognition and measurement. The Group is within the scope of the Pillar Two rules applying from 1 January 2024. For a description of Pillar Two, see 5.1, Income tax. 8.3 New regulations IASB issued certain amended standards and interpretations, that are not mandatory for the consolidated financial state-ments of the Group at 31 December 2024. The Group expects to adopt the new standards and interpretations when they become mandatory. Based on the current business setup and level of activities, none of these standards and interpretations are expected to have a material impact on the recognition and measurement in the consolidated financial statements. The standard below will impact presentation and the definition of certain required subtotals. IFRS 18: Presentation and Disclosure in Financial statementsFrom 1 January 2027, IFRS 18 will replace IAS 1, introducing new requirements that will help to achieve comparability of financial performance of similar entities and provide more relevant information and transparency to users. Even though IFRS 18 will not impact the recognition and measurement of items, its impact on presentation (including definition of certain required subtotals) and disclosures is expected to be pervasive, in particular those related to the statement of profit or loss and providing management-defined performance measures within the financial statements. The key new concepts introduced in IFRS 18 relate to: the structure of the statement of profit or loss; required disclosures in the financial statements for certain profit or loss performance measures that are reported out-side an entity’s financial statements (that is, management-de-fined performance measures); and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general ISS has not yet analysed the impact of the new standard, but will do so in due course. 154 FINANCIAL STATEMENTS 8.4 Group companies Northern Europe Denmark (ISS A/S's country of domicile) ISS Facility Services A/S 100% ISS Finance B.V. 100% 4) ISS World Services A/S 100% 4) ISS Global A/S 100% 4) ISS Global Management A/S 100% 4) ISS Holding France A/S 100% 4) ISS Lending A/S 100% 4) Belgium & Luxembourg ISS Catering N.V. 100% ISS Facility Services N.V. 100% ISS Reception & Support Services N.V. 100% ISS Facility Services S.A. 100% ISS Luxinterim SARL 100% Finland ISS Palvelut Holding Oy 100% ISS Palvelut Oy 100% Netherlands ISS Catering Services B.V. 100% ISS Holding Nederland B.V. 100% ISS Integrated Facility Services B.V. 100% ISS Nederland B.V. 100% Norway ISS Holding AS 100% ISS Management AS 100% ISS Facility Services AS 100% ISS Serveringspartner AS 100% ISS Service Management AS 100% Poland ISS Facility Services Sp. Z.o.o. 100% ISS World Services Poland Sp. Z.o.o 100% 4) Sweden ISS Facility Services Holding AB 100% ISS Facility Services AB 100% ISS Palvelut Holding AB 100% UK & Ireland ISS UK Holding Limited 100% ISS UK Limited 100% ISS Facility Services Ltd. 100% ISS Mediclean Ltd 100% ISS Ireland Ltd. 100% Central & Southern Europe Austria ISS Austria Holding GmbH 100% ISS Facility Services GmbH 100% med-serv GmbH 100% ISS Ground Services 100% Germany ISS Automotive Services GmbH 100% ISS Facility Services Holding GmbH 100% ISS Integrated Facility Services GmbH 100% ISS Energy Services GmbH 100% ISS Communication Services GmbH 100% ISS Pluralis GmbH 100% Hungary ISS International Hungary Kft 100% 5) Italy ISS Facility Services S.r.l. 100% Portugal ISS Tech Portugal, Unipessoal Lda. 100% 4) Romania ISS Romania Group S.R.L. 100% 5) ISS Facility Services International S.R.L 100% 5) Spain Integrated Service Solutions, S.L. 100% ISS Facility Services, S.A. 100% UTE-HOSPITALES S.A.S 065% 1) Gelim Madrid, S.A. 100% Switzerland ISS Facility Services AG 100% ISS Schweiz AG 100% Türkiye ISS Hazir Yemek Üretim ve Hizmet A.Ş. 50.1% 3) ISS Proser Koruma ve Güvenlik Hizmetleri A.Ş. 50.1% 3) ISS Tesis Yönetim Hizmetleri A.Ş. 50.1% 3) ISS İşletme Hizmetleri A.Ş (Rönesans) 50.1% 3) ISS Bitki Bakim ve Hasere Kontrol Hizmetleeri A.Ş. 50.1% 3) Asia & Pacific Australia & New Zealand ISS Facility Management Pty Ltd 100% ISS Facility Services Australia Ltd 100% ISS Facility Services Pty Ltd. 100% ISS Health Services Pty Ltd. 100% ISS Integrated Services Pty Ltd 100% ISS Property Services Pty Ltd 100% ISS Security Pty Ltd 100% Pacific Invest December 2004 Pty Ltd. 100% Pacific Service Solutions Pty Ltd. 100% ISS Facility Services Ltd. 100% ISS Holdings NZ Ltd. 100% China ISS Facility Services (Shanghai) Ltd. 100% ISS Hongrun (Shanghai) Cleaning Services Ltd 100% Shanghai B&A Property Management Co., Ltd. 100% Shanghai B&A Security Co., Ltd. 100% Shanghai ISS Catering Management Ltd. 100% Hong Kong Hung Fat Cleaning Transportation Co., Ltd. 100% ISS Adams Secuforce Ltd. 100% ISS China Holdings Ltd. 100% ISS China Holdings I Ltd. 100% ISS EastPoint Properties Ltd. 100% ISS EastPoint Property Management Ltd. 100% ISS Facility Services Ltd. 100% ISS Greater China Ltd. 100% ISS Mediclean (HK) Ltd. 100% ISS Pan Asia Security Services Ltd. 100% JSL Ltd. 100% Silvertech E&M Engineering Co., Ltd. 100% India ISS Facility Services India Pvt. Ltd. 100% ISS SDB Security Services Pvt. Ltd. 046% 2) Indonesia PT ISS Facility Services 100% PT ISS Indonesia 100% PT ISS Jasa Fasilitas 0% 2) Singapore ISS Asia Pacific Pte. Ltd. 100% ISS Catering Services Pte. Ltd. 100% ISS Facility Services Pte. Ltd. 100% ISS M&E Pte. Ltd. 100% Americas Chile Apunto Servicios de Alimentacion S.A. 100% ISS Chile S.A. 100% ISS Facility Services S.A. 100% ISS Servicios Generales Ltda. 100% ISS Servicios Integrales Ltda. 100% Mexico ISS Centro América, S. de R.L. de C.V. 100% ISS Facility Services, S.A. de C.V. 100% US & Canada ISS Facility Services Holding, Inc. 100% ISS Management and Finance Co, Inc. 100% ISS Facility Services, Inc (US) 100% Guckenheimer Enterprises Inc. 100% ISS Holding Inc. 100% ISS Facility Services Inc. (CA) 100% 1)Joint venture. 2)By virtue of the governance structure, the Group has the power to govern the financial and operating policies of the company. Consequently, the company is consolidated as a subsidiary. 3)Under certain circumstances or events, ISS may be obliged to choose to purchase other shareholders’ shareholdings or dispose of its own shareholdings. 4)Group HQ entity. 5)Global managed services. On this page, the Group’s significant subsidiaries and joint ventures are presented per region. Together these are referred to as “Companies within the ISS Group”. 155 FINANCIAL STATEMENTS 8.5 Definitions ISS uses various key figures, financial ratios and non-financial ratios, all of which provide our stakeholders with useful and necessary information about the Group’s financial position, performance, cash flows and development in a consistent way. In relation to managing the business, achieving our strategic goals and ultimately creating value for our shareholders, these measures are considered essential. In addition, the Group uses alternative performance measures (APMs) to provide stakeholders with additional measures to evaluate and analyse the Group’s performance. The APMs are non-IFRS financial measures defined by the Group and thus may not be comparable with measures provided by peers or other companies’ measures. Alternative performance measures EBITDA Operating profit + Depreciation and amortisation + Amortisation/impairment of customer contracts EBITDA before other items Operating profit before other items + Depreciation and amortisation Pro forma adjusted EBITDA EBITDA before other items, excluding hyperinflation (IAS 29) + EBITDA before other items in discontinued operations, and adjusted as if all acquisitions and divestments had occurred on 1 January of the respective year Net profit (adjusted) Net profit excluding Other income and expenses, net, Goodwill impairment, Amortisation/impairment of customer contracts, impact from hyperinflation (IAS 29) and Net profit from discontinued operations (comparatives are not restated) Free cash flow Cash flow from operating activities – Acq. of intangible assets, property and equipment, net – Change in financial assets (excl. equity-accounted investees) – Addition of right-of-use assets, net Financial leverage Net debt Pro forma adjusted EBITDA Organic growth, % (Revenue current year excl. hyperinflation – Comparable revenue1)prior year) x 100 Comparable revenue1)prior year Acquisitions are treated as having been integrated with ISS at the acquisition date. Consequently, organic growth includes changes in revenue of such acquisitions compared with expectations at the acquisition date. Operating margin, % Operating profit before other items x 100 Revenue Total revenue growth, % (Revenue current year – Revenue prior year) x 100 Revenue prior year Financial ratios Acquisitions, % Revenue from acquisitions2)x 100 Revenue prior year Cash conversion, % Free cash flow x 100 Operating profit before other items Currency adjustments Total revenue growth – Organic growth – Acquisition/divestment growth, net3) Divestments, % Revenue from divestments4)× 100 Revenue prior year Equity ratio, % Total equity × 100 Total assets Gross debt Borrowings + utilisation of factoring and certain customer’s supply chain finance arrangements Net debt Borrowings – Securities – Cash and cash equivalents +/– Fair value of derivatives + Net debt included in Liabilities held for sale Share ratios Basic earnings per share (EPS) Net profit attributable to owners of ISS A/S Average number of shares (basic) Diluted earnings per share (EPS) Net profit attributable to owners of ISS A/S Average number of shares (diluted) Average number of shares (basic) Average number of issued shares, excluding average treasury shares, for the year Average number of shares (diluted) Average number of shares (basic) + Average number of outstand-ing PSUs and RSUs expected to vest in the year Other ratios Customer retention, % Portfolio revenue (annual value) retained at 31 December of the portfolio at 1 January Portfolio revenue (annual value) at 1 January Gender diversity, Board, % Female board members (AGM5)) elected) × 100 Board members (AGM5)) elected) Board meeting attendance, % Accumulated number of attended board meetings for all board members x 100 Number of board meetings possible to attend for all board members 1)Comparable revenue prior year excludes impacts from changes in exchange rates and acquisitions/divestments, net as well as impact from hyperinflation restatement. To arrive at comparable revenue, prior year’s revenue is retranslated by applying current year’s exchange rates, divestments and impacts from hyperinflation restatements are excluded and estimated impacts from acquisitions are added. 2)Expectations at the acquisition date. 3)Estimated or actual revenue where available at the divestment date. 4)Incl. the effect from exclusion of currency effects from the calculation of organic growth and acq./div., net. 5)AGM: Annual general meeting. 156 FINANCIAL STATEMENTS Parent company financial statements Primary financial statements Statement of profit or loss 157 Statement of comprehensive income 157 Statement of cash flows 157 Statement of financial position 158 Statement of changes in equity 158 Accounting policies 1 Material accounting policies 159 2 Significant estimates and judgements 159 Statement of profit or loss 3 Fees to auditors 159 4 Finance costs 159 5 Income tax 160 Statement of financial position 6 Investment in subsidiary 160 7 Deferred tax 160 Other 8 Management remuneration 160 9 Contingent liabilities 160 10 Financial risk management 160 11 Currency risk 160 12 Liquidity risk 161 13 Credit risk 161 14 Related parties 161 15 New regulations 161 157 FINANCIAL STATEMENTS Statement of profit or loss 1 January – 31 December (DKKm) Note 2024 2023 Employee costs (30) (21) Other operating expenses (76) (70) Operating profit (106) (91) Finance costs 4 (268) (197) Profit before tax (374) (288) Income tax 5 38 37 Net profit (336) (251) Statement of comprehensive income 1 January – 31 December (DKKm) 2024 2023 Net profit (336) (251) Comprehensive income (336) (251) Statement of cash flows 1 January – 31 December (DKKm) 2024 2023 Operating profit (106) (91) Share-based payments 5 (5) Changes in working capital 17 (4) Interest (paid)/received to/from companies within the ISS Group (266) (197) Income tax (paid)/received 3 1 Joint taxation contribution (paid)/received, net 110 125 Cash flow from operating activities (237) (171) Cash flow from investing activities - - Other financial payments, net (1) (1) Payments (to)/from companies within the ISS Group, net 1,880 514 Dividends paid to shareholders (425) (390) Purchase of treasury shares (1,217) - Cash flow from financing activities 237 123 Total cash flow 0 (48) Cash and cash equivalents at 1 January 0 48 Total cash flow 0 (48) Cash and cash equivalents at 31 December 0 0 158 FINANCIAL STATEMENTS Statement of financial position At 31 December (DKKm) Note 2024 2023 Assets Investment in subsidiary 6 27,674 27,674 Non-current assets 27,674 27,674 Receivables from companies within the ISS Group 139 149 Tax receivables - 8 Cash and cash equivalents 0 0 Current assets 139 157 Total assets 27,813 27,831 Equity and liability Total equity 21,714 23,599 Debt to companies within the ISS Group 5,613 3,821 Deferred tax liabilities 7 370 366 Non-current liabilities 5,983 4,187 Debt to companies within the ISS Group 50 31 Tax payables 36 - Trade payables and other liabilities 30 14 Current liabilities 116 45 Total liabilities 6,099 4,232 Total equity and liabilities 27,813 27,831 Statement of changes in equity 1 January – 31 December (DKKm) Share capital Treasury shares Retained earnings Total 2024 Equity at 1 January 185 (66) 23,480 23,599 Net profit - - (336) (336) Comprehensive income - - (336) (336) Dividends - - (425) (425) Share-based payments - - 93 93 Settlement of vested PSUs/RSUs - 79 (79) - Purchase of treasury shares - (1,217) - (1,217) Transactions with owners - (1,138) (411) (1,549) Changes in equity - (1,138) (747) (1,885) Equity at 31 December 185 (1,204) 22,733 21,714 2023 Equity at 1 January 185 (185) 24,168 24,168 Net profit - - (251) (251) Comprehensive income - - (251) (251) Dividends - - (390) (390) Share-based payments - - 72 72 Settlement of vested PSUs/RSUs - 119 (119) - Transactions with owners - 119 (437) (318) Changes in equity - 119 (688) (569) Equity at 31 December 185 (66) 23,480 23,599 159 FINANCIAL STATEMENTS 1 Material accounting policies Basis of preparation The financial statements of ISS A/S have been prepared in accord- ance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act. In addition, the financial statements have been prepared in compli- ance with the IFRS Accounting Standards issued by the IASB. Changes in accounting policies No changes with material effect on recognition and measure- ment were implemented in 2024. Material accounting policies With the exception of the items described below, the material accounting policies for ISS A/S are identical to the Group’s material accounting policies, which are described in the notes to the consolidated financial statements. Statement of financial position Investment in subsidiary is measured at cost, which compris- es consideration transferred measured at fair value and directly attributable transaction costs. Where the recoverable amount is lower than the cost, the investment is written down to this lower value. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount, but only to the extent that the recoverable amount does not exceed the original cost. Tax As required by Danish legislation, ISS A/S is jointly taxed with all Danish resident subsidiaries. ISS A/S acts as adminis- tration company for the joint taxation and consequently settles all payments of corporation tax with the tax authorities. Joint taxation contributions to/from jointly taxed companies are rec- ognised in profit or loss and in Income tax and in the statement of financial position in Receivables from or Debt to companies within the ISS Group. Companies which utilise tax losses in other companies pay joint taxation contribution to ISS A/S equivalent to the tax base of the tax losses utilised. Companies whose tax losses are utilised by other companies receive joint taxation contributions from ISS A/S equivalent to the tax base of the tax losses utilised (full absorption). 2 Significant estimates and judgements Significant estimates and judgements relating to the applied accounting policies for ISS A/S are the same as for the Group to the extent of similar accounting items, see Significant estimates and judgements on p. 109 for a description. The specific risks for ISS A/S are described in the notes to the financial state- ments of the parent company. Investment in subsidiary If there is identification of impair- ment, an impairment test is performed as described in the accounting policies in 3.2 to the consolidated financial state- ments. The assessment of whether there is an indication of impairment is based on both external and internal sources of information such as performance of the subsidiary, significant decline in market values etc. 3 Fees to auditors (DKKm) 2024 2023 Statutory audit 1 1 Other assurance services - 0 Total 1 1 4 Finance costs (DKKm) 2024 2023 Interest expenses to companies within the ISS Group (265) (196) Bank fees (3) (1) Finance costs (268) (197) 160 FINANCIAL STATEMENTS 5 Income tax (DKKm) 2024 2023 Current tax 45 114 Deferred tax (4) (75) Prior year adjustments, net (3) (2) Income tax 38 37 Effective tax rate (DKKm) 2024 2023 Statutory income tax rate, Denmark 22.0 % 22.0 % Non-tax-deductible expenses less non-taxable income (11.0)% (8.5)% Prior year adjustments, net (0.8)% (0.7)% Effective tax rate 10.2 % 12.8 % 6 Investment in subsidiary (DKKm) 2024 2023 Cost at 1 January 27,674 27,674 Cost at 31 December 27,674 27,674 Carrying amount at 31 December 27,674 27,674 Subsidiary ISS World Services A/S, Søborg, Denmark, 100%. 7 Deferred tax (DKKm) 2024 2023 Liabilities, net at 1 January 366 291 Tax on profit before tax 4 75 Liabilities, net at 31 December 370 366 Deferred tax liability at 31 December 2024 and at 31 Decem- ber 2023 related to deferred re-taxation of foreign exchange gains/losses. ISS A/S has no unrecognised deferred tax assets regarding tax losses carried forward (2023: None). 8 Management remuneration Key management personnel of the Group as defined in 6.1 to the consolidated financial statements are also considered key management personnel of the parent. Remuneration to the Board of Directors and the Executive Group Management is specified in 6.1 to the consolidated financial statements. 9 Contingent liabilities ISS A/S is jointly taxed with all Danish resident subsidiaries. As administration company ISS A/S and companies within the joint taxation have a joint and unlimited liability of Danish corporate and withholding taxes related to dividends, interests and royal- ties. As per 31 December 2024, Danish corporate tax and Dan- ish withholding taxes amounted to DKK 0 million (2023: DKK 0 million). Any subsequent adjustments to Danish withholding taxes may change this joint and unlimited liability. VAT ISS A/S and certain Danish Group companies are jointly regis- tered for VAT and are jointly liable for the payment hereof. 10 Financial risk management ISS A/S’s financial risks are managed centrally by Group Treasury based on the Financial Policy, which is reviewed and approved annually by the Board of Directors. The objectives, policies and processes for measuring and man- aging the exposure to financial risks is described in 4.3 to the consolidated financial statements. The risks specific to ISS A/S are described below. 11 Currency risk At 31 December 2024 and at 31 December 2023, ISS A/S was not exposed to currency risk as no assets or liabilities were denominated in currencies other than DKK. 161 FINANCIAL STATEMENTS 12 Liquidity risk Liquidity risk results from ISS A/S’s potential inability or diffi- culty in meeting the contractual obligations associated with its financial liabilities due to insufficient liquidity. ISS A/S is a holding company and its primary assets consist of shares in ISS World Services A/S and receivables from companies within the ISS Group. ISS A/S has no revenue generating activities of its own, and therefore ISS A/S’s cash flows and ability to service its indebtedness and other obligations, will depend primarily on the operating performance and financial condition of ISS World Services A/S and its operating subsidiaries, and the receipt by ISS A/S of funds from ISS World Services A/S and its subsidiaries in the form of dividends or otherwise. At 31 December 2024, ISS A/S carried no significant financial liabilities outside of the Group. Thus the liquidity risk was primarily related to ISS A/S’s obligations under the Danish joint taxation where ISS A/S acts as the administration company. 13 Credit risk ISS A/S has no revenue generating activities and therefore no trade receivables. Consequently, credit risk is limited to an insignificant amount of cash and cash equivalents and an insig- nificant intercompany receivable with various indirectly owned subsidiaries in relation to joint taxation. 14 Related parties In addition to the description in 7.3 to the consolidated financial statements of related parties, related parties of ISS A/S comprise ISS World Services A/S and its subsidiaries, associates and joint ventures, see 8.4 to the consolidated financial statements. In 2024, ISS A/S had the following transactions with other related parties, which were all made on market terms: ISS A/S had a debt against ISS Global A/S of DKK 5,613 million (2023: DKK 3,821 million) ISS A/S paid interests to ISS Global A/S, see 4, Finance costs ISS A/S received/paid joint taxation contribution equal to 22% of taxable income from/to jointly taxed Danish resident subsidiaries 15 New regulations New regulations are described in 8.3 to the consolidated financial statements. 162 FINANCIAL STATEMENTS Management statement Copenhagen, 20 February 2025 The Board of Directors and the Executive Group Management Board have today considered and adopted the Annual Report of ISS A/S for the financial year 2024. The consolidated financial statements and Parent company financial statements have been prepared in accordance with IFRS Accounting Standards as adopted by the EU and addi-tional requirements of the Danish Financial Statements Act (class D). In addition, the consolidated financial statements and Parent company financial statements have been prepared in compliance with the IFRS Accounting Standards issued by the IASB. The Management review have been prepared in accord-ance with the Danish Financial Statements Act. In our opinion, the consolidated financial statements and the Parent company financial statements give a true and fair view of the financial position at 31 December 2024 of the Group and the Parent company and of the results of the Group’s and the Parent companys operations and cash flows for the financial year 2024. In our opinion, the Management review includes a fair review of the development in the operations and financial circumstances of the Group and the Parent company, of the results for the year and of the financial position of the Group and the Parent company as well as a description of the most significant risks and elements of uncertainty, which the Group and the Parent company are facing. Additionally, the Sustainability statement, which is part of Man-agement review, has been prepared, in all material respects, in accordance with paragraph 99a of the Danish Financial Statements Act. This includes compliance with the European Sustainability Reporting Standards (ESRS), including that the pro-cess carried out by the management to identify the reported in-formation (the Process) is in accordance with the description set out in the subsection titled Double Materiality Assessment in the General section. Furthermore, disclosures within EU Taxonomy in the Environmental section of the Sustainability statement are, in all material aspects, in accordance with Article 8 of EU Regulation 2020/852 (the Taxonomy Regulation Reporting). The year 2024 marks the initial implementation of paragraph 99a of the Danish Financial Statements Act concerning compliance with ESRS. As such, more clear guidance and practice are antic-ipated in various areas, which are expected to be issued in the coming years. Furthermore, the Sustainability statement includes forward-looking statements based on disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected. In our opinion, the Annual Report for 2024 of ISS A/S for the financial year 2024 with the file name ISS-2024-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation. We recommend that the Annual Report be adopted at the annual general meeting on 11 April 2025. Executive Group Management Board Kasper Fangel Group CEO Mads Holm Group CFO Board of Directors Niels Smedegaard Chair Lars Petersson Deputy Chair Kelly Kuhn Reshma Ramachandran Ben Stevens Søren Thorup Sørensen Henriette Hallberg Thygesen Signe Adamsen (E) Rune Christensen (E) Tove Møller Eriksen (E) 163 FINANCIAL STATEMENTS Independent Auditor’s Reports To the shareholders of ISS A/S Report on the audit of the Financial Statements Our opinion In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the Group’s and the Parent Company’s financial position at 31 December 2024 and of the results of the Group’s and the Parent Company’s operations and cash flows for the financial year 1 January to 31 December 2024 in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (‘IASB’) and in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act. Our opinion is consistent with our Auditor’s Long-form Report to the Audit & Risk Committee and the Board of Directors. What we have audited The Consolidated Financial Statements and Parent Company Financial Statements of ISS A/S for the financial year 1 January to 31 December 2024 comprise statement of profit or loss, statement of comprehensive income, statement of cash flows, statement of financial position, statement of changes in equity and notes, including material accounting policy information for the Group as well as for the Parent Company. Collectively referred to as the “Financial Statements”. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s responsibilities for the audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. To the best of our knowledge and belief, prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014 were not provided. Appointment We were appointed auditors of ISS A/S for the first time on 11 April 2024 for the financial year 2024. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2024. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For key audit matters, see the next page. Statement on Management Review Management is responsible for Management Review. Our opinion on the Financial Statements does not cover Management Review, and we do not as part of the audit express any form of assurance conclusion thereon. In connection with our audit of the Financial Statements, our responsibility is to read Management Review and, in doing so, consider whether Management Review is materially inconsistent with the Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. Moreover, we considered whether Management Review includes the disclosures required by the Danish Financial Statements Act. This does not include the requirements in paragraph 99 a related to the sustainability statement covered by the separate auditor’s limited assurance report hereon. Based on the work we have performed, in our view, Management Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act, except for the requirements in paragraph 99 a related to the sustainability statement, cf. above. We did not identify any material misstatement in Management Review. Management responsibilities for the Financial Statements Management is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (‘IASB’) and in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, Management is responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. 164 FINANCIAL STATEMENTS Key audit matter How our audit addressed the key audit matter Key audit matter How our audit addressed the key audit matter Revenue recognition Revenue from contracts is recognised as the services are rendered to the customers. Recognition of revenue is complex due to volume of transactions, the geographical spread of the Group’s operations and furthermore from large integrated facility service contracts being subject to interpretations, including impact from contract modifications and variable consideration. Accordingly, appropriate recognition and timing of revenue is critical and involves management judgement, especially in relation to integrated and complex facility service contracts. We focused on this area because of the significance to the Consolidated Financial Statements, as well as the complexity. In addition, we focused on this area as revenue comprises a substantial number of transactions with different characteristics. Refer to Note 1.2 in the Consolidated Financial Statements. We considered the appropriateness of the Group’s accounting policies for revenue recognition and assessed compliance with applicable IFRS Accounting Standards. We carried out risk assessment procedures in order to obtain an understanding of IT systems, business processes and relevant controls regarding recognition of revenue. For the controls, we assessed whether they were designed and implemented to effectively address the risk of material misstatement. For selected controls that we planned to rely on, we tested whether they were performed on a consistent basis. We applied data analytics for revenue streams in order to identify and test transactions outside the ordinary transaction flow and performed substantive procedures over invoicing and relevant contracts in order to assess the accounting treatment and principles applied, and tested journal entries within revenue. We tested that the revenue is recognised in the correct financial year. Finally, we assessed the adequacy of disclosures provided by Management in the Consolidated Financial Statements. Impairment assessment of goodwill Goodwill comprise a significant part of the consolidated statement of financial position. The cash generating units (CGUs) in which goodwill is included is impairment tested by management on an annual basis. We focused on this area, as the carrying amounts are significant and as Management is required to exercise considerable judgement because of the inherent complexity in estimating the fair value in use. Refer to Note 3.1 and Note 3.2 in the Consolidated Financial Statements. We considered the appropriateness of the defined CGUs within the business and examined the methodology used by Management to assess the carrying amount of goodwill assigned to groups of CGUs to determine compliance with applicable IFRS Accounting Standards. We performed detailed testing, including a test of mathematical accuracy of Management’s impairment tests for goodwill, and challenged the significant assumptions affecting the future cash flows, including assumptions related to revenue growth, operating margins and discount rates. We used our internal valuation specialists to independently challenge the discount rates and terminal growth rate. In calculating the discount rates, the key inputs used were independently sourced from market data, and we assessed the methodology applied. Finally, we assessed the adequacy of disclosures provided by Management in the Consolidated Financial Statements. 165 FINANCIAL STATEMENTS Auditor’s responsibilities for the audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the addi-tional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropri-ate in the circumstances, but not for the purpose of express-ing an opinion on the effectiveness of the Group’s and the Parent Company’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of Management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty ex-ists related to events or conditions that may cast significant doubt on the Group’s and the Parent Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evi-dence obtained up to the date of our auditor’s report. How-ever, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial informa-tion of the entities or business units within the group as a basis for forming an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regard-ing, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a state-ment that we have complied with relevant ethical requirements regarding independence, and to communicate with them all re-lationships and other matters that may reasonably be thought to bear on our independence and, where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with those charged with governance, we determine those matters that were of most sig-nificance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter. Report on compliance with the ESEF Regulation As part of our audit of the Financial Statements we performed procedures to express an opinion on whether the annual re-port of ISS A/S for the financial year 1 January to 31 December 2024 with the filename ISS-2024-12-31-en.zip is prepared, in all material respects, in compliance with the Commission Delegat-ed Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the Consolidated Financial Statements includ-ing notes. Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes: The preparing of the annual report in XHTML format; The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchor-ing thereof to elements in the taxonomy, for all financial information required to be tagged using judgement where necessary; Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements presented in human-read-able format; and For such internal control as Management determines nec-essary to enable the preparation of an annual report that is compliant with the ESEF Regulation. Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material respects, in compli-ance with the ESEF Regulation based on the evidence we have ob-tained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditor’s judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error. The procedures include: Testing whether the annual report is prepared in XHTML format; Obtaining an understanding of the company’s iXBRL tagging process and of internal control over the tagging process; Evaluating the completeness of the iXBRL tagging of the Con-solidated Financial Statements including notes; Evaluating the appropriateness of the company’s use of iXBRL elements selected from the ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy has been identified; Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and Reconciling the iXBRL tagged data with the audited Consoli-dated Financial Statements. In our opinion, the annual report of ISS A/S for the finan-cial year 1 January to 31 December 2024 with the filename ISS-2024-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation. Hellerup, 20 February 2025 PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab CVR no 33771231 Rasmus Friis Jørgensen State Authorised Public Accountant mne28705 Mads Melgaard State Authorised Public Accountant mne34354 166 FINANCIAL STATEMENTS Independent auditor’s limited assurance report on the Sustainability Statement To the stakeholders of ISS A/S Limited assurance conclusion We have conducted a limited assurance engagement on the sustainability statement of ISS A/S (the “Group”) included in the Management review (the “Sustainability Statement”), pp. 51-100 for the financial year 1 January – 31 December 2024. Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Sustainability Statement is not prepared, in all material respects, in accordance with the Dan-ish Financial Statements Act paragraph 99 a, including: compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the management to identify the information reported in the Sustainability Statement (the “Process”) is in accordance with the description set out in the “IRO and interaction with SBM” section (pp. 59-65); and compliance of the disclosures in subsection “EU Taxonomy” within the “Environmental” section (pp. 90-94) of the Sustainability Statement with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”). Basis for conclusion We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews of historical financial information (“ISAE 3000 (Revised)”) and the additional requirements applicable in Denmark. The procedures in a limited assurance engagement vary in na-ture and timing from, and are less in extent than for, a reasona-ble assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibil-ities under this standard are further described in the Auditor’s re-sponsibilities for the assurance engagement section of our report. Our independence and quality management We are independent of the Group in accordance with the Inter-national Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accord-ance with these requirements and the IESBA Code. Our firm applies International Standard on Quality Manage-ment 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Management’s responsibilities for the Sustainability statement Management is responsible for designing and implementing a process to identify the information reported in the Sustaina-bility Statement in accordance with the ESRS and for disclosing this Process as included in the “IRO and interaction with SBM” section (pp. 59-65) of the Sustainability Statement. This respon-sibility includes: understanding the context in which the Group’s activities and business relationships take place and developing an understanding of its affected stakeholders; the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the Group’s financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term; the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by selecting and applying appropriate thresholds; and making assumptions that are reasonable in the circumstances. Management is further responsible for the preparation of the Sustainability Statement, which includes the information iden-tified by the Process, in accordance with the Danish Financial Statements Act paragraph 99 a, including: compliance with the ESRS; preparing the disclosures as included in subsection “EU Taxonomy” within the “Environmental” section of the Sustainability Statement, in compliance with Article 8 of the Taxonomy Regulation; designing, implementing and maintaining such internal control that management determines is necessary to enable the preparation of the Sustainability Statement that is free from material misstatement, whether due to fraud or error; and the selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasonable in the circumstances. Inherent limitations in preparing the Sustainability Statement In reporting forward-looking information in accordance with ESRS, management is required to prepare the forward-look-ing information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected. Auditor’s responsibilities for the assurance engagement Our responsibility is to plan and perform the assurance engage-ment to obtain limited assurance about whether the Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or er-ror and are considered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the Sustainability Statement as a whole. As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism throughout the engagement. Our responsibilities in respect of the Process include: Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effectiveness of the Process, including the outcome of the Process; Considering whether the information identified addresses the applicable disclosure requirements of the ESRS; and Designing and performing procedures to evaluate whether the Process is consistent with the Group’s description of its Process, as disclosed in the “IRO and interaction with SBM” section of the Sustainability Statement. 167 FINANCIAL STATEMENTS Our other responsibilities in respect of the Sustainability Statement include: Identifying where material misstatements are likely to arise, whether due to fraud or error; and Designing and performing procedures responsive to disclosures in the Sustainability Statement where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Summary of the work performed A limited assurance engagement involves performing proce-dures to obtain evidence about the Sustainability Statement. The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the Sustainability Statement. In conducting our limited assurance engagement, with respect to the Process, we: Obtained an understanding of the Process by performing inquiries to understand the sources of the information used by management; and reviewing the Group’s internal documentation of its Process; and Evaluated whether the evidence obtained from our procedures about the Process implemented by the Group’s was consistent with the description of the Process set out in the “IRO and interaction with SBM” section. In conducting our limited assurance engagement, with respect to the Sustainability Statement, we: Obtained an understanding of the Group’s reporting processes relevant to the preparation of its Sustainability Statement including the consolidation processes by obtaining an understanding of the Group’s control environment, processes and information systems relevant to the preparation of the Sustainability Statement but not evaluating the design of particular control activities, obtaining evidence about their implementation or testing their operating effectiveness; Evaluated whether the information identified by the Process is included in the Sustainability Statement; Evaluated whether the structure and the presentation of the Sustainability Statement are in accordance with the ESRS; Performed inquiries of relevant personnel and analytical procedures on selected information in the Sustainability Statement; Performed substantive assurance procedures on selected information in the Sustainability Statement; Where applicable, compared disclosures in the Sustainability Statement with the corresponding disclosures in the financial statements and Management review; Evaluated the methods, assumptions and data for developing estimates and forward-looking information; and Obtained an understanding of the Group’s process to identify taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the Sustainability Statement. Other Matter The comparative information included in the Sustainability Statement was not subject to our assurance engagement. Our conclusion is not modified in respect of this limitation of scope. Hellerup, 20 February 2025 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab CVR no 33771231 Rasmus Friis Jørgensen State Authorised Public Accountant mne28705 Mads Melgaard State Authorised Public Accountant mne34354 168 FINANCIAL STATEMENTS Forward-looking statements and ESEF Forward-looking statements This Annual Report contains forward-looking statements, including, but not limited to, the guidance and expectations provided in Outlook on p. 13. 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 such words, and other statements on matters that are not historical fact or regarding future events or prospects, are forward- looking statements. ISS has based these statements on its current views with respect to future events and financial performance. These views involve risks and uncertainties that may 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. Actual results may differ materially. For example as a result of risks related to the facility service industry in general or to ISS in particular, including those described in this report 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. Reporting under the ESEF Regulation The Group is required to prepare and file the Annual Report in the European Single Electronic Format (ESEF) using a combination of the XHTML format and to tag the primary statements and the notes to the consolidated financial statements using iXBRL (Inline eXtensible Business Language). The Group’s iXBRL tags comply with the ESEF taxonomy, which has been developed on the basis of IFRS taxonomy published by the IFRS Foundation. The line items in the consolidated financial statements are tagged to elements in the ESEF taxonomy. For financial line items that are not directly defined in the ESEF taxonomy, an extension to the taxonomy has been created. The Annual Report submitted to the Danish Financial Supervisory Authority (the Officially Appointed Mechanism) consists of the XHTML document together with the technical files, all of which are included in the zip file ISS-2024-12-31-en.zip. ESEF data Name of reporting entity: Domicile of entity: Legal form of entity: Country of incorporation: Address: Principal place of business: Principal activities: Name of the parent entity: Name of ultimate parent and Group: ISS A/S Denmark A/S Denmark Buddingevej 197, DK-2860 Søborg Global Workplace and facility service solutions ISS A/S ISS A/S Contact information ISS A/S Buddingevej 197 DK - 2860 Søborg Denmark Tel.: +45 38 17 00 00 Fax: +45 38 17 00 11 www.issworld.com CVR 28504799 Investor relations Michael Vitfell-Rasmussen Head of Group Investor Relations Tel. +45 38 17 00 00 Edited by Group Compliance and Financial Controlling ISS A/S Design & production KIRK & HOLM Annual reportAuditor's report on audited financial statementsParsePort XBRL Converter2024-01-012024-12-312023-01-012023-12-31213800LEZA58SZNCBN19Regnskabsklasse DOpinionBasis for Opinion213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember213800LEZA58SZNCBN192024-01-012024-12-31213800LEZA58SZNCBN192023-01-012023-12-31213800LEZA58SZNCBN192023-12-31213800LEZA58SZNCBN192024-12-31213800LEZA58SZNCBN192022-12-31213800LEZA58SZNCBN192023-12-31ifrs-full:IssuedCapitalMember213800LEZA58SZNCBN192024-01-012024-12-31ifrs-full:IssuedCapitalMember213800LEZA58SZNCBN192024-12-31ifrs-full:IssuedCapitalMember213800LEZA58SZNCBN192023-12-31ifrs-full:TreasurySharesMember213800LEZA58SZNCBN192024-01-012024-12-31ifrs-full:TreasurySharesMember213800LEZA58SZNCBN192024-12-31ifrs-full:TreasurySharesMember213800LEZA58SZNCBN192023-12-31ifrs-full:RetainedEarningsMember213800LEZA58SZNCBN192024-01-012024-12-31ifrs-full:RetainedEarningsMember213800LEZA58SZNCBN192024-12-31ifrs-full:RetainedEarningsMember213800LEZA58SZNCBN192023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800LEZA58SZNCBN192024-01-012024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800LEZA58SZNCBN192024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800LEZA58SZNCBN192023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800LEZA58SZNCBN192024-01-012024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800LEZA58SZNCBN192024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800LEZA58SZNCBN192023-12-31ifrs-full:NoncontrollingInterestsMember213800LEZA58SZNCBN192024-01-012024-12-31ifrs-full:NoncontrollingInterestsMember213800LEZA58SZNCBN192024-12-31ifrs-full:NoncontrollingInterestsMember213800LEZA58SZNCBN192022-12-31ifrs-full:IssuedCapitalMember213800LEZA58SZNCBN192023-01-012023-12-31ifrs-full:IssuedCapitalMember213800LEZA58SZNCBN192022-12-31ifrs-full:TreasurySharesMember213800LEZA58SZNCBN192023-01-012023-12-31ifrs-full:TreasurySharesMember213800LEZA58SZNCBN192022-12-31ifrs-full:RetainedEarningsMember213800LEZA58SZNCBN192023-01-012023-12-31ifrs-full:RetainedEarningsMember213800LEZA58SZNCBN192022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800LEZA58SZNCBN192023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800LEZA58SZNCBN192022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800LEZA58SZNCBN192023-01-012023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800LEZA58SZNCBN192022-12-31ifrs-full:NoncontrollingInterestsMember213800LEZA58SZNCBN192023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember1213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember2213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember1213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember2213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember1213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember2213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember3213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember4213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember5213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember6213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember7213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember8213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember9213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember10213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember1213800LEZA58SZNCBN192024-01-012024-12-31cmn:ConsolidatedMember2213800LEZA58SZNCBN192023-01-012023-12-31cmn:ConsolidatedMemberiso4217:DKKiso4217:DKKxbrli:sharesxbrli:pure