ISS — Earnings Release 2016

May 4, 2016

SOLID START TO 2016

Copenhagen, 2016-05-04 08:00 CEST (GLOBE NEWSWIRE) --
No. 17/2016

ISS (ISS.CO, ISS DC, ISSDY), a leading global provider of facility services,
announces its interim financial report for the first three months of 2016:

Highlights

-- Solid organic revenue growth of 3.7% (Q4 2015: 4.8%).
-- Improved operating margin of 4.5% (Q1 2015: 4.4%).
-- Strong cash conversion over the last twelve months of 99% (Q4 2015: 99%).
-- Profit before amortisation/impairment of acquisition-related intangibles
increased to DKK 518 million (Q1 2015: DKK 426 million).
-- Net profit increased to DKK 399 million (Q1 2015: DKK 297 million).
-- Revenue generated from IFS increased by 11% in local currency (FY 2015:
11%), leading to a total share of 35% of Group revenue (FY 2015: 34%).
-- Revenue from Global Corporate Clients increased by 15% in local currencies
(FY 2015: 11%) and represents 10% of Group revenue (FY 2015: 10%).
-- Strategic initiatives, including sharper focus on key customers, Business
Process Outsourcing and the procurement programme, continue to be
implemented according to plan and support margin development.
-- ISS has once again achieved the highest possible rating, five stars, by the
International Association of Outsourcing Professionals (IAOP).
-- The 2016 outlook for organic revenue growth, operating margin and cash
conversion remains unchanged.

Jeff Gravenhorst, Group CEO, ISS A/S, said:

“We have had a solid start to the year thanks to our strategic initiatives and
attractive offerings. Organic growth ended slightly stronger than anticipated
due to relatively strong growth in Continental Europe and Asia & Pacific,
driven by high demand for our integrated service solutions and growth from our
Global Corporate Clients segment. Significant contract wins and retentions in
the quarter included the extension of the multi-service contract with McLaren
in the United Kingdom, the win of an IFS contract with Mitsui Fudosan in
Taiwan, and major cleaning contracts within the hotel sector in the United
Kingdom and with Pittsburgh International Airport in the USA. We continue to
improve our margins and delivered significantly improved net profit for the
quarter. We do not expect any major pick-up in the macro-economic environment,
but we are confident that we can continue to grow and improve and hence deliver
on our outlook for the year.”

Lord Allen of Kensington Kt CBE Jeff Gravenhorst

Chairman Group CEO

Conference call details

A conference call will be held on 4 May 2016 at 10:00 CET.

Presentation material will be available online prior to the conference call.

Dial-in details:
Denmark: +45 35 44 55 79
UK: +44 203 364 53 73
USA: +1 855 753 22 37

Link: http://edge.media-server.com/m/p/comqz3jd

For investor enquiries
Nicholas Ward, Head of Group Investor Relations, +45 3817 6251
Martin Kjær Hansen, Senior Investor Relations Manager, +45 3817 6431

For media enquiries
Manuel Vigilius, Global Media Relations Manager, +45 3817 6404

About ISS
The ISS Group was founded in Copenhagen in 1901 and has grown to become one of
the world’s leading Facility Services companies. ISS offers a wide range of
services such as: Cleaning, Catering, Security, property and Support Services
as well as Facility Management. Global revenue amounted to DKK 79.6 billion in
2015 and ISS has approximately 500,000 employees and activities in more than 75
countries across Europe, Asia, North America, Latin America and Pacific,
serving thousands of both public and private sector customers. For more
information on the ISS Group, visit www.issworld.com.

ISS A/S, ISIN DK0060542181, ISIN US4651472056
ISS Global A/S, ISIN XS1145526585, ISIN XS1330300341, ISIN XS1145526825