2 ISS AT A GLANCE PERFORMANCE HIGHLIGHTS 2016 We measure Group performance using the KPIs set out below. We believe that in combination they give us the best picture of whether we are driving the business forward in the desired direction and creating value for our shareholders. Definitions of KPIs, see p. 13. FINANCIAL KPIs ORGANIC GROWTH AND REVENUE DKK billion 80 75 70 65 60 55 2014 2015 % 5.0 4.0 3.0 2.0 1.0 0.0 2016 Revenue, DKK billion Organic growth, % OPERATING MARGIN AND PROFIT DKK billion % 5.0 5.9 4.5 5.7 4.0 5.5 3.5 5.3 2014 2015 2016 Operating pro t before other items, DKK billion Operating margin, % CASH CONVERSION AND CASH FLOW DKK billion 4.0 3.5 98% 3.0 99% % 110 98% 100 90 2.5 80 2.0 70 2014 2015 2016 Cash ow from operating activities, DKK billion Cash conversion, % PERFORMANCE 3.4% Organic growth 79,137 DKKm Revenue • Organic growth supported by good performance in emerging markets and solid growth rates in all regions, driven by contract launches and strong demand for IFS, projects and non-portfolio work • All regions delivered positive organic growth, despite notable negative organic growth in Australia and Brazil • Revenue down 1% mainly due to impact from currency effects in Northern Europe, mainly GBP • IFS up 14% in local currencies, now representing 37% of Group revenue or DKK 29.3 billion Group performance, see p. 16 Regional performance, see pp. 20–23 5.8% Operating margin 4,566 DKKm Operating profit before other items • Operating margin up by 0.1%-point, improving for the third consecutive year • Improvement supported by GREAT including procurement savings, efficiency gains and good performances in Continental Europe and Asia & Pacific • Operating profit before other items up by 1% to the highest level in ISS history • Corporate costs amounted to 0.8% of revenue, in line with our expectations Group performance, see p. 16 Regional performance, see pp. 20–23 98% Cash conversion 3,690 DKKm Cash flow from operating activities • Strong cash conversion supported by continued focus on cash performance across the Group • Cash flow from operating activities in line with last year, driven by higher cash outflow from changes in working capital offset by lower interest paid, net • Investments in intangible assets and property, plant and equipment, net of DKK 805 million represented 1.0% of Group revenue Group performance, see p. 16
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