2023-02-23

Annual Report 2022

Continued strong business momentum – ISS enters the next phase of the OneISS strategy.

2022 highlights

Financial results

Financial results were in line with the preliminary announcement on 23 January 2023. Organic growth in Q4 2022 was 9.4% (Q4 2021: 5.8%) and 7.8% for the full-year 2022 (2021: 2.0%). The growth was driven by the return-to-office trend, as well as scope and price increases, with prices in Turkey contributing with around 1.5%-points to the organic growth the full-year. In 2022, the operating margin before other items excluding hyperinflation effect (IAS 29) was 3.8% (2021: 2.5%) and free cash flow amounted to DKK 1.7 billion (2021: DKK 1.7 billion). 

Financial leverage and dividend

Financial leverage at the end of 2022 was reduced to 2.6x from 3.8x at the end of 2021. Based on the financial results for 2022, the Board of Directors will at the annual general meeting propose a dividend for 2022 of 20% of adjusted net profit, corresponding to a total dividend of DKK 390 million and DKK 2.1 per share. 

OneISS strategy execution

Execution of the OneISS strategy continued, and the consolidated financial turnaround targets were achieved. ISS is now entering the next phase of the strategy, targeting to deliver strong growth at sustainable and attractive margins.

Key strategic priorities

The five key strategic priorities are unchanged with focus on growth, brilliant operating basics, technology, planet and people. ISS will with the ‘Customer for life’ initiative, enhance the focus on customer retention.

Solid business momentum

Business momentum continued during the last part of 2022 with accelerating organic growth, solid operating margin and free cash flow improvements.

Strengthened  commercial processes

The strengthening of commercial processes is starting to show results. Since the Q3 Trading Update, ISS has won an IFS contract with a regional bank in Australia, signed a global partnership with a healthcare customer and secured important contract extensions.

Inflation

ISS has well-embedded processes in place, to tightly manage inflation through price increases and operational efficiencies. As a result, the operating margin in 2022 was generally unaffected by inflation.

Integration of Swiss acquisition

The integration of the Swiss acquisition, Livit FM, is progressing well. Key IT migration processes were concluded ahead of plan and operational integration has been successfully completed. A significant share of the synergies is realised, leading to the business being margin accretive to both country and Group.

Outlook for 2023

4-6%

ORGANIC GROWTH

4.25-4.75%

OPERATING MARGIN

Around DKK 2.0 billion

FREE CASH FLOW

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Our solid business performance in 2022 was driven by the continued execution of the OneISS strategy with a strong focus on growth, operational excellence, investments in technology, sustainability and not least our dedicated placemakers.

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

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

"Our solid business performance in 2022 was driven by the continued execution of the OneISS strategy with a strong focus on growth, operational excellence, investments in technology, sustainability and not least our dedicated placemakers. The commercial momentum remained robust throughout the year with the signing and extension of several key accounts. This proves the resilience of our business model in a challenging macroeconomic environment. As we move into the next phase of our strategy, we remain committed to deliver value to our customers and shareholders, while making a positive impact on the planet and our communities."

Interim report for 1 January - 30 June 2021
Financial Overview H2 2022 H2 2021 2022 2021 Q4 2022 Q3 2022
DKKm (unless otherwise stated)
Revenue 39,595 36,470 76,538 71,363 20,284 19,311
Organic growth, # 8.8 4.3 7.8 2.0 9.4 8.1
Operating profit (before other items) 1,786 1,227 2,847 1,776

Operating margin (before other items) % 4.5  3.4  3.7  2.5     
Free cash flow 1,090 90 1,734 1,735

Leverage (Net debt / Pro forma adjusted EBITDA*)

2.6x 3.8x

* Pro forma adjusted EBITDA excludes restructuring costs and one-offs

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

Kristian Tankred
Senior Investor Relations Manager
+45 3067 3525

DOWNLOAD REPORTS

2022 Annual Report

2022 Sustainability Report

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