2022-02-24

Annual Report 2021

ISS is turning to the next phase of the OneISS strategy. 2021 results in line with expectations.

2021 highlights

OneISS strategy

The execution of the OneISS strategy continues to develop as planned. Key milestones were achieved during 2021, and the foundation for the future execution of the operating model has been established. ISS is now turning to the next phase in the strategy execution with five updated strategic priorities.

IT & Digitalisation strategy

A new IT & Digitalisation strategy and organisation have been introduced with the first early deliverables and applications introduced in the market. With the strategy, ISS will develop high-quality digital solutions for customers and employees, build scalable and secure cloud-based technology platforms, and run stable IT operations and services.

Sustainability

ISS commits to reach full-scope net-zero greenhouse gas emissions by 2040, including reduction of CO2-footprint from food, halve the amount of food waste by 2027 and electrification of the global fleet.

Turnaround initiatives

The short-term turnaround initiatives continue to progress according to plan, and financial performance is on track to deliver on turnaround targets by the end of 2022.

Commercial momentum

Commercial momentum has strengthened throughout 2021, and the pipeline is improving. The two largest contracts due to expire in 2022 have been successfully extended.

Leverage

Leverage at the end of 2021 was reduced to 3.8x from 7.1x at the end of 2020 and thereby nearing the turnaround target of below 3x by the end of 2022.

Divestment programme

The divestment programme is nearing completion. The remaining programme consists of two smaller business units and three countries. The expected total divestment proceeds of DKK 2 billion is unchanged, of which DKK 1.8 billion has been signed or completed.

Financial results

Financial results were in line with expectations. Organic growth in 2021 was 2.0% (2020: (6.6)%) supported by solid demand for both portfolio and above-base services in Q4 2021. Operating margin before other items in 2021 was 2.5% compared to 0.5% adjusted for restructuring and one-offs in 2020. Free cash flow in 2021 amounted to DKK 1.7 billion (DKK (1.8) billion in 2020).

Outlook for 2022

Above 2%

organic growth

Above 3.5%

operating margin

DKK 1.3 billion

free cash flow

Jacob_4745_2021
“

2021 was an exciting year as the OneISS strategy came to life and progressed according to plan.

Jacob Aarup-Andersen, Group CEO, ISS A/S

Jacob Aarup-Andersen Group CEO, ISS A/S, says:

"2021 was an exciting year as the OneISS strategy came to life and progressed according to plan. Several key milestones were achieved with the divestment programme nearing completion, and we made solid operational and financial progress. Furthermore, we took significant steps in fulfilling our strategic ambitions with a sharper focus on key segments, investments in technology and a more aligned operating model. Despite another year in light of the pandemic, our many placemakers played a vital role in making the world work better – meeting our customers’ demands for dedicated services and improved solutions. ISS is well positioned for a Covid-19 recovery and to become an even stronger business in the future - to the benefit of all our stakeholders.” 

contacts & downloads

Need more information?

MEDIA ENQUIRIES

Kenni Leth
Head of Global PR & Media Relations
+45 51 71 43 68
press@group.issworld.com

INVESTOR ENQUIRIES

Jacob Schmidt Johansen
Head of Group Investor Relations
+45 21 69 35 91

Louisa Baruch Larsson
Senior Investor Relations Manager
+45 38 17 63 38

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2021 Annual Report

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