10522 ISS Beretning GB /Omslag
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77 Addresses as of February 1999 Austria France Luxembourg Slovakia ISS Servisystem GmbH ISS France S.A. / ISS CGS Group ISS Luxembourg S.A. ISS Servisystem spol. s.r.o. Brünner Strasse 85 50 avenue Gabriel Péri Avenue de la Faïencerie 121 Trnavská Cesta 3 A-1210 Vienna F-94 117 Arcueil L-1511 Luxembourg SK-831 04 Bratislava Tel.: +43 1 291110 Tel.: +33 1 41 24 13 13 Tel.: +32 2 255 8300 Tel.: +42 17 5556 2670 Fax: +43 1 2911178 Fax: +33 1 41 24 13 03 Fax: +32 2 255 8311 Fax: +42 17 5556 4747 Country Manager: Michael Maximilian Country Manager: Emmanuel Airy Country Manager: Daniel van Cauteren Country Manager: Honor Ilavsky Belgium Germany Malaysia Slovenia Contents 1 1998 in Brief 40 Shareholder Information ISS Servisystem S.A.-N.V. ISS-NWG ISS Servisystem Sdn. Bhd. ISS Servisystem d.o.o. 2 Board of Directors and Board of Management 43 Financial Analysts Luchthavenlaan 25B, Building C Keniastrasse 24 No. 1 Jalan 2/118B Kopitarjeva 5 B-1800 Vilvoorde D-47269 Duisburg Desa Tun Razak, Cheras SI-62000 Maribor 3 Group Financial Highlights and Key Figures 44 Signatures to the Accounts Tel.: +32 2 255 8300 Tel.: +49 203 99 82 0 56000 Kuala Lumpur Tel.: +386 62 220860 4 Report to Shareholders, Employees 45 Auditors’ Report Fax: +32 2 255 8311 Fax: +49 203 99 82 222 Tel.: +60 3 973 1282 Fax: +386 62 2208638 and Customers 46 Accounting Policies Country Manager: Daniel van Cauteren Country Managers: Rainer Thomas and Fax: +60 3 973 1281 Country Manager: Bojan Rajtmajer Rainer Gossmann Country Manager: Terry Kong ® 16 EVA 50 Consolidated Profit and Loss Accounts Brazil Spain 17 Business Conduct 51 Consolidated Statements of Cash Flows Greece Netherlands 18 The Service Enterprise Concept 52 Consolidated Balance Sheets ISS Sulamericana Comercial S/C Ltda. ISS España Estrada da Ressaca 960, Caixa Postal 29 ISS Servisystem s.a. ISS Servisystem B.V. Tel.: +34 90 934 5207 20 Country Reports 54 Notes to the Consolidated Financial Statements 06844-900-Embu-SP, São Paulo 4, Amaroussiou-Halandriou Drentsestraat 4 Fax: +34 93 759 2218 22 Denmark 67 Profit and Loss Accounts of Tel.: +55 11 7961 6355 15125 Maroussi Postbus 1000 Country Manager: Joaquim Borrás 24 United Kingdom and Ireland the Parent Company Fax: +55 11 494 6252 Tel.: +30 1 689 6461-4 NL-3800 BA Amersfoort Country Manager: Eugênio Marianno Fax: +30 1 689 6460 Tel.: +31 33 4 680680 Sri Lanka 26 Sweden 68 Balance Sheets of the Parent Company Country Manager: Xenophon A. Digenis Fax: +31 33 4 655562 28 Norway 70 Notes to the Financial Statements of Brunei Country Manager: Theo Buitendijk ISS Abans Environmental 29 Germany the Parent Company Hong Kong SAR Services (PT) Ltd. ISS Thomas Cowan Sdn. Bhd. Norway 141 Kirula Road 30 Austria 74 ISS Subsidiaries and Associated Companies 1A, Bangunan Menglait 1 ISS ESGO Services (HK) Ltd. Colombo 05 30 Slovenia 76 Definitions of Key Figures Mile 2, Jalan Gadong, B.S.B. 3180 9/F Stelux House ISS Norge a.s. Tel.: +941 500 631 30 Greece 77 Addresses Negara Brunei Darussalam 689 Prince Edward Road East Ulvenveien 83 Fax: +941 590 555 Tel.: +673 2 446 497 San Po Kong, Kowloon Postboks 132 Økern Country Manager: Rusi Pestonjee 30 Czech Republic Fax: +673 2 446 498 Tel.: +852 2621 4333 N-0509 Oslo 30 Slovakia Country Manager: Jose Robles III Fax: +852 2621 5260 Tel.: +47 2 2288 5000 Sweden 30 Hungary Country Manager: Gregory Rooke Fax: +47 2 2288 5121 China Country Manager: Thorbjørn Graarud ISS Sverige AB 30 Poland Hungary Årstaängsvägen 25 31 Switzerland and Italy ISS ESGO Poland Box 42071 32 Finland Beijing ESGO – Xin Sha Building Services ISS Servisystem Kft. S-126 13 Stockholm Co. Ltd. Gubacsi ut. 6 ISS Multiservice Sp.z.o.o. Tel.: +46 8 681 6000 33 Belgium and Luxembourg 5A Citic Building H-1097 Budapest ul. Kasprzaka 29/31 Fax: +46 8 681 9087 33 Netherlands 19 Jiangoumenwai Dajie Tel.: +361 216 3948 PL-01-234 Warsaw Country Manager: Arne Pedersen 34 France Beijing 10004 Fax: +361 216 3947 Tel.: +48 22 36 16 01 Tel.: +86 106 5002255 Country Manager: Gerald Thalmaier Fax: +48 22 36 10 44 Switzerland 34 Portugal Fax: +86 106 5010978 Country Manager: Dariusz Malewski 35 Brazil Country Manager: Yuan Yong Indonesia ISS Holding A.G. 36 China and Hong Kong SAR Portugal Talackerstrasse 5 Czech Republic P.T. Egana Prima Mandiri Box 1733 37 Singapore Komplek Mahkota Mas, Blok E/1 ISS Servisystem Lda. CH-8065 Zürich 38 Thailand ISS Harvilla spol. s.r.o. Jl. M.H. Thamrin Rua Moinho da Barrunchada, Tel.: +41 1 874 18 18 38 Malaysia Budejovicka 5 Cikokol, Tangerang-15117 4-1.o Dt. - Carnaxide Fax: +41 1 874 18 19 CZ-140 00 Prague 4 Tel.: +6221 554 5753 P-2795 Linda-A-Velha Country Manager: Romano Spadaro 39 Indonesia Tel.: +4202 6112 2241 Fax: +6221 554 5754 Tel.: +351 1 424 6798 39 Brunei Fax: +4202 6112 2481 Country Manager: Houtman Fax: +351 1 424 6799 Thailand 39 Sri Lanka Forward-looking Statements Country Manager: Gerald Thalmaier Simanjuntak Country Manager: Luis Andrade ISS ESGO Co. Ltd. This annual report contains statements regarding Denmark Ireland Russia 92/9 Moo 7, Phaholyothin Road expectations to the future development, Klongthanon, Bangken in particular future sales, operating efficiencies ISS Danmark ISS Contract Cleaners Ltd. NWG RUS GmbH Bangkok 10220 Rentemestervej 62 14/17 Hanbury Lane Alabjana 25, 125252 Moscow Tel.: +66 2 552 5015 and business expansion. Such statements are DK-2400 Copenhagen NV Dublin 8 Tel.: +007/095-198 1679 Fax: +66 2 552 1260 subject to risks and uncertainties as various factors, Tel.: +45 38 17 17 17 Tel.: +353 1 453 7711 Fax: +007/095-198 3506 Country Manager: many of which are outside of ISS’s control, Fax: +45 38 33 23 11 Fax: +353 1 453 7870 Theinsiri Theingviboonwong Country Manager: Sven Ipsen Country Manager: David Healy Singapore may cause the actual development and results to United Kingdom differ materially from the expectations contained Finland Italy ISS Servisystem Pte. Ltd. in the report. Factors that might affect such 315 Outram Road #04-09 ISS UK Ltd ISS Suomi Oy ISS Robustelli s.r.l. Italia Tan Boon Liat Building 44-50 Bath Road Annual general meeting expectations include, among others, overall Laulukuja 6 Viale Aguggiari 178 Singapore 169074 Hounslow Thursday, 22 April 1999 at 5pm economic and business conditions, fluctuations in FIN-00421 Helsinki I-21100 Varese Tel.: +65 227 9711 Middlesex TW3 3EB Radisson SAS Falconer Center currencies, the demand for ISS’s services, Tel.: +35 8 205 155 Tel.: +39 0332 22 77 06 Fax: +65 225 8340 Tel.: +44 181 569 6080 Fax: +35 8 2051 50155 Fax: +39 0332 22 43 67 Country Manager: C.C. Woon Fax: +44 181 569 6607 Falkoner Allé 9 competitive factors in the industry and Country Manager: Matti Kyytsönen Country Manager: Giuliano Robustelli Country Manager: Kevin Mahoney 1908 Frederiksberg C uncertainties concerning possible acquisitions Denmark and divestments. ISS B-share price during 1998 1998 in Brief Turnover 1992-1998 Turnover growth 1997-1998 Operating profit *) 1992-1998 Amounts in DKKbn Amounts in DKKm Amounts in DKKm 2,100 Total 875 14 growth 12 1,800 750 10 1,500 Acquisi- 625 tions, net 8 1,200 500 6 900 Organic 375 growth 4 600 250 2 300 125 Currency 0 0 effect 0 92 93 94 95 96 97 98 92 93 94 95 96 97 98 – 300 *) Before other income and expenses Key figures 1998 Amounts in DKKm, except per share data 1998 1997 1996 Turnover 13,801 11,782 10,738 Operating profit 1) 735 639 553 Ordinary profit after tax before goodwill amortisation 487 395 239 Net profit (loss) 211 451 (1,856) Sustainable cash flow 2) 440 356 290 Total equity 1,454 1,310 894 Earnings per share (EPS) 2) 9.28 8.29 3.41 Sustainable cash flow per share 2) 14.78 11.96 9.75 Share of turnover generated by specialised business units 42% 35% 30% 1) Before other income Share of employees on full time 55% 50% 30% and expenses Number of employees 137,800 106,600 103,400 2) Cf. page 76 for definitions Growth in 1998 Total Continued business business 3) Organic growth + 6% + 6% Turnover + 17% + 20% Operating profit + 15% + 19% Ordinary profit before amortisation of goodwill + 23% Sustainable cash flow per share + 24% 3) Excluding Darenas (Denmark and Number of employees + 29% United Kingdom) sold in 1997 Main events • 32 acquisitions, including NWG, Germany and Reliance, Hong Kong • Many new, large contracts in key segments, including major Private Finance Initiative contracts in the UK • EVA implemented. Proposal for employee shares and stock options • No dividends proposed as opportunities for value creating acquisitions are expected to persist 2 Board of Directors Board of Management Board of Directors Peter Lorange (56) Member of the Board of ISS A/S From left to right: since 1998. President of IMD, International Sven Riskær (60) Institute of Management Member of the Board of ISS A/S Development, Switzerland; since 1987. Managing Director member of the board of Royal of The Industrialization Fund for Carribbean Cruise Lines Ltd., Developing Countries (IFU), The Citibank International plc, Investment Fund for Central and Christiania Eiendomsselskap A/S Eastern Europe (IØ) and The In- and S. Ugelstad Skipsrederi A/S vestment Fund for the Emerging Markets (IFV); chairman of the Anette Aksten* (46) board of Dansk Olie og Natur- Member of the Board of ISS A/S gas A/S; member of the board since 1998.