from an Economic PerspectiveMatthew Brabin

UK&I CFO

Intention To Float

Intention To Float

ISS has announced its intention to launch an Initial Public Offering (IPO) of its shares and to list on NASDAQ OMX Copenhagen

The intended IPO is expected to consist primarily of an issue of new shares to raise proceeds of approximately DKK 8 billion. Proceeds from the IPO are proposed, together with amounts drawn under a new banking facilities agreement subject to the IPO, to repay existing credit facilities during the course of 2014

Drawings can be made under the new facilities agreement, which was put in place on 18 February 2014, subject to satisfaction of certain conditions precedent, including that the offering of shares contemplated by way of the IPO has occurred or will occur concurrently with the first drawing under the new facilities. The new facility, with investment grade like terms, is in place with a smaller number of relationship banks and includes a flexible interest margin depending on our leverage

For further information regarding the proposed IPO, including effects from the proposed refinancing, incentive programmes and corporate governance changes, please refer to the offering circular for ISS A/S if and when such document is published

3

Business and Strategy Update

ISS - a truly global company

5

Our Vision:

The World’s Greatest Service Organisation

Building the company globally …

… alignment of the company behind a core value

proposition

… further increasing scale and global

presence…

112 years of success in global facility servicesG

lob

al E

xpan

sio

nS

har

eho

lder

sS

trat

egy

1965Western Europe

1973Latin America

1995Asia entry

1977Listed on the Copenhagen

Stock Exchange

1997“Aim 2002” strategyfocus on Multi-service

2000“Create 2005” strategy introducesIFS facility services concept

2007North America

2005IntegratedFacility Services

2005Taken private by funds advised by EQT and Goldman Sachs CP1

2008“The ISS Way” strategy focus on alignment

2002Australia

2012OTPP & KIRKBI1

as new investors

2013#1 Global outsourcing company

1) Shareholders' names refer to the following: funds advised by EQT Partners ("EQT"), funds advised by affiliates of Goldman Sachs ("GSCP"), Ontario Teachers' Pension Plan Board ("OTPP") and KIRKBI Invest A/S ("KIRKBI")

1946Nordic(Sweden in 1946 and Norway in 1952)

1901Founded inDenmark

Headquartered in Denmark with more than 530,000 employees globally and operations in 53 countries

Global leader in facility services offering Single, Multi and Integrated Facility Services

Owned by EQT, Goldman Sachs CP, OTPP, KIRKBI1 and management

6

Key features driving ISS performance

Global leader with unique service offering

Margin upside through operational efficiencies, business mix and recovery

Positioned to capture high growth opportunities

Resilient business model

Robust cash generation and low capital requirements

Target: Organic revenue growth in the medium term

of at least 6% p.a.

Target: Achieve 6.5% operating margin1 in the

medium term

1. Operating profit before other items divided by revenue

Experienced management team with solid track-record and in-depth sector expertise

Target: Continuously high and best in class cash

conversion

7

What we do…

Facility Management

(FM)

Support

Security

Cleaning

Catering

Property

Integrated Facility Services

% of 2013 revenue

49%

8%

20%

11%

8%

4%

8

…for whom and how

Business Services & IT

Public Administration

Industry & Manufacturing

Healthcare

Transportation & Infrastructure

Retail and Wholesale

Other

End-market exposure1

Diversified exposure to end-markets

Single services

Multi-services

Integrated Facility Services (IFS)

Delivery model1

IFS26%

ISS provides Single services, Multi-services and IFS to a wide range of customers in various end-markets

1) Breakdown of 2013 revenue2) Includes countries in Asia, Eastern Europe, Latin America as well as Turkey, Israel and South Africa3) Customer size is defined based on the actual and potential revenue generated from the customer. The top 10 customers represent approximately 10% of Group revenue

9

Key AccountsLarge & MediumSmallRoute based

Customer size1,3

Focus on larger customers

Global presence1

Developed markets

Emerging markets

Emerging Markets2

23%

10

What the customer wants

Quality Reputation Price Range National coverage

International coverage

1

2

3

4

5

Companies with >DKK 2bn in revenue Companies with <DKK 2bn in revenue

Source: Global customer interview programme undertaken by a third party

Large customers care as much about

reputation as they do about price

Reputation is a more important parameter for large customers than it is for small

customers

How important is each of the following criteria when purchasing facility services? (1-5)

1

3

5 4.6 4.4 4.3 4.3 4.2 4.1

IFS buyers rate self-delivery criteria highly

How important are the following criteria in purchasing IFS for Multinational companies? (1-5)

Service range

11

Single service

Single service

Single service

Single service

How we differentiate ourselves

Facility Management

Subcontractor

Subcontractor

Subcontractor

SubcontractorFacility

Management Provider

orS

olu

tio

ns

to o

uts

ou

rce

Value added offering

Credible and effective risk management, including HSE and local labour law management

Brand protection

Efficiencies and financial certainty

Sustainability and transparency

Delivery capabilities

Single Service Excellence

Consistent delivery globally

Flexible delivery model

What the customer needs

Integration of services

One point of contact - convenience

Further efficiencies

Self-delivery

Growth drivers

2006 2007 2008 2009 2010 2011 2012 2013

14% 15% 16%

18% 19% 21%

24% 26%

Positioned for European recovery Strong IFS growth

(IF

S r

even

ue a

s %

of g

roup

rev

enue

)

CAGR: 15%

Strong momentum in Global Corporate Contracts

Glo

bal C

orpo

rate

Con

trac

ts

reve

nue

in D

KK

bn)

(Global C

orporate Contracts,

revenue as % of group revenue)

2006 2007 2008 2009 2010 2011 2012 2013

0.2 0.2 0.5 1.1

1.9

3.4 4.0

6.5

0.3% 0.3% 0.7%1.7% 2.5%

4.4% 5.0%

8.3%

2006 2007 2008 2009 2010 2011 2012 2013

9%11%

14%15%

18% 19%21%

23%

(Em

ergi

ng m

arke

ts %

of

grou

p re

venu

e)

Increased exposure to emerging markets1

CAGR: 19%

1) Emerging markets comprises Asia, Eastern Europe, Latin America, Israel, South Africa and Turkey

2006 2007 2008 2009 2010 2011 2012 2013

(5%)

-

5%

10%

Nordic Western Europe

4.7%

0.5%

Organic grow

th

13

Leveraging five strategic areas to enhance profitability

Countries with high employee engagement (eNPS) and customer satisfaction (cNPS) scores have margins ~26% above group average

Over 25% of Group revenue has been mapped allowing an enhanced knowledge of customer segment profitability

This enables a focus on the most profitable customer segments

IFS readiness is a key focus area to further drive IFS growth

On average, we estimate that the IFS operating margin1 on a Group basis is between 6% and 7%

Matching customer segmentation with Group structure allows to reduce above unit costs through increased organisational efficiency

Procurement benefits currently being extracted are estimated at DKK 150-250m

Further benefits to be extracted in coming phases

People leadership

Customer segmentation

Organisational structure

IFS

Excellence

Overview of key characteristicsLever to create value

Focus on most profitable customer

segments

Reducing above unit costs

Driving growth in the margin accretive IFS

business

Extracting procurement benefits

Leadership and performance management

Strategic area

1) Before other items and including corporate costs

Underlying business above 6%

Efficiency gains

Growing operating margin(1) from 5.6%

Growing emerging markets exposure

IFS

(1) Operating margin before other items

Opportunities to sustain and enhance operating margins

Our 3 operational objectives

Organic Growth

Operating Margin

Cash Conversion

Value Creation

Customer focusRetain New sales

Cross-selling Up-selling

Delivering on our targets increases shareholder value…

15

Our 3 operational objectives

Organic Growth Operating Margin Cash Conversion

… and is being measured

Organic growth by segment

By service, customer type & delivery

Portfolio growth

By service, customer type & delivery

Cross-selling

12 month rolling

CBI%, CBII%, CBIII%

By service, customer type & delivery

Impact of acquisitions as R&D versus CAPEX

Cash Conversion

ROCE

Investment in fixed asset % of Sales

Debt multiple

16

Organic Growth

2011 actual FX Acq. Div. Org. Growth2012 actual 76,000

76,500

77,000

77,500

78,000

78,500

79,000

79,500

80,000

DKK

Mill

.Measuring growth…

Organic growth is measuring a company’s ability to grow by additional net sales to existing and new customers

Opposed to organic growth is acquisitive growth which stems from acquisitions

18

ISS A/S 2012DKK Mill.

Revenue - previouse year 77,644 +/- Reclassification - FX-adjustment 1,887 Adjusted Revenue previouse year (A) 79,531

Revenue Actual 79,454 - Revenue from acquisitions not included previouse years -20 + Revenue from divestments included previouse years 1,463 Adjusted revenue Actual (B) 80,897

Organic growth (B-A = C) 1,366 Organic growth % (C/A) 1.72%

Operating Margin / CB III Margin

Profit & Loss, example

SalesWages

Add wages & social charges

Wages subventions

Total wagesSubcontractors

Temporary workers

Total wages & Subcont.Transportation

Material

Machinery & Equipment

Provision for bad debt

Contract Contribution ASupervision

Other production cost

Contract Contribution - CCBBranch Management

Contribution I - CBIDistrict & Regional cost

Contribution II - CBIIHead office cost

Contribution III - CBIII

10040.8

17.8

(0.9)

57.7 4.1

1.5

63.3 1.6

6.1

2.8

0.2

26.02.5

1.9

21.64.4

17.15.7

11.43.9

7.5

Striving to reach at least a CB III Margin of 7.00% in business units with critical mass

20

Focus on Operational Efficiency

Minimum targets for Contract Contribution

Contract follow up

Each month - 12 times per year (sometimes more frequent)

Action plan for unprofitable contracts (or “focus contracts”)

Even closer follow-up

Be attentive to highly profitable contracts

License to Act

Continuous improvements needed

Competitive landscape

21

KA

Large

&

Medium

Small

Cash & Working Capital

Cash performance is a top priority

Why? Capital Structure – the ability to service our debt Liquidity Covenants

To Whom? Our Lenders & Bond holders Our investors The Company for cash management purposes – optimise

credit facilities and cash within the Group

23

Value Drivers – and Key Priorities

Investments

Cash profits

If growth and (CBIII) margin are not converted to cash in our bank account, they are worthless

24

Why is Cash important?

We need cash for paying

Salaries (payrolls / social charges)

Taxes and VAT

Suppliers

Interest

Investments (machinery and equipment)

Where is cash coming from?

Customer payments

Supplier credits

Drawings on our bank accounts

Working Capital

There is a lot of money in optimising the processes

25

Why Cash is King: Working Capital

ISS is a high volume/low margin business

Approximately 75% of costs are employees or subcontractors, often paid bi-weekly

Customers typically pay after 50 days

We are basically working as a bank, funding customers incl. public authorities

Revenue Staff Costs Consumables Other operating costs

Depreciation & Amortisation

Other expenses EBIT / CB III -

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

79454

4103

52,071

7,009

15,110

853 308

ISS Group, mDKK 2012100% 66%

9%

19%

1% <1%5%

26

Trade Working Capital

Net Working Capital is DKK 8.1bn → DKK 814.7m annual costs

Receivables Inventory Payables Net Working Capital -

2,000

4,000

6,000

8,000

10,000

12,000

14,000

11504

8147

312

3669

ISS Group, mDKK Dec 2012

27

Account Receivables - Break-down (FY2012)

Accounts Receivables

11.5

Unbilled1.1

Work in Progress

(WIP)0.1

Current7.8

Past due2.6

Services partially delivered but not yet invoiced to customer under a project spanning several months

Services delivered but not yet invoiced to customer

Invoiced to customer;Invoice not past due date

Invoiced to customer;Past due date

Broken promise (Why?)

45 days of sales tied up

31 days of sales tied up

10 days of sales tied up

4 days of sales tied up

10% has not yet been invoiced

68%

22% has not paid on time

28

Debtor Days - Average time of payment

Debtor days =Value of one days revenue x (1+VAT)

Total accounts receivables

6,801 / 31 x (1+16%)

11,5Debtor days1 =

256

11,5= = 45

A Key Performance Indicator:

If we tie up one day of sales, we need to borrow additional DKK

260m. Interest costs @10% equals 25.6m per annum

1: 2011 FY numbers

ISS must ALWAYS keep Debtor Days under control to meet the cash conversion target

29

Costs

Labour: € 6,000

Payable after: 14 days

Supplies: € 2,000

Payable after: 30

days

Example – working capital parameters

Contract

Price: €

10,000

Payment terms: 60

days

Operating margin:

20%

The customer keeps €10,000 in his account for 60 days

Employees and suppliers allow us to delay payments by 14 and

30 days

-€ 10,000

-€ 8,000

-€ 6,000

-€ 4,000

-€ 2,000

€ 0

€ 2,000

€ 4,000

0 5 10 15 20 25 30 35 40 45 50 55 60 65

ISS’s bank account

We need to borrow money (and pay

interest) in 46 days to operate this

account

30

Cash flow break-even on contract

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53

-300

-200

-100

0

100

200

300

CBIII @ 30 DSO CBIII @ 60 DSO CBIII @ 90 DSO

Months

31

Payment terms and shareholder value

Economic profit on a customer contract?

Positive shareholder

value

Negative shareholder

value

Break even amongst others depend on:

- Contract performance

- WACC rate

- Customer risk profile

Debtor days

Economic profit

32

Working Capital is cheap source of funding…

Customers will not need to draw on their bank account until invoice is due

Cheap funding for customers….

… unless we price it into our contracts

Employees, suppliers and other creditors provide ISS with cheap source of funding

We do not need to draw on our bank account until payment is due…

33

34

Cash Conversion

A measure of ISS’s ability to convert profit into cash

Measures how much of our CBIII is available to

Service our debt,

Pay taxes and other obligations,

Fund investment in our business

CBIII + Changes in Working CapitalCBIII

Cash Conversion =

Tying up working capital reduces cash

conversion

Keep ISS in business

4,411 + 1164,411

103%= =

What if cash conversion was….

Cash Conversion 99%

Operating Profit (CB3) 3,835

Changes in Working Capital (44)

Interest payments (2,373)

Tax payments (434)

Other payments (489)

Free Cash Flow 495

90%

3,835

(384)

(2,373)

(434)

(489)

156

85%

3,835

(575)

(2,373)

(434)

(489)

(36)

50%

3,835

(1,918)

(2,373)

(434)

(489)

(1,379)

0%

3,835

(3,835)

(2,373)

(434)

(489)

(3,296)

We do not have sufficient cash and need to borrow

money

Operating profits should be in our bank account rather than being tied up in working capital, hence cash conversion must be kept at a high level.

Target = 95%

If successful, money will be left to delever or make

investments

ISS needs cash to service our loans, taxes and other

obligations

35

Clear credit policy Claims handling Communication between

operation and finance

Working Capital Optimisation “WCO”

Time from job finished to invoice sent

Number of credit notes Daily distribution of sent

invoices

Total average of Days S

ales Outstanding

(Debtor days)

Follow up on major invoices

Payment terms Payment methods Documentation

Agreed days

Days to Invoicing

Contract

Overduedays

Focus on Monitoring Objectives & Organization

Objective is to reduce working capital requirement by:

Analysis of order to cash process Streamlining internal procedures and

policies Enhancing internal communication Strengthening internal training Changing and anchoring the culture

Tailored organisation for roll-out Involvement of management Facilitator team Follow up

Workshop for mixed audience Officers from operation AND finance

36

Debtor days, Cash Conversion and Growth – only a Financial Issue?

When negotiating a contract:

Longer payment periods

Higher debtor days

Negative development in working capital

Lower cash conversion

Lower sustainable cash flow

Reduces our ability to grow the business…

37

Cash Converstion

Payable Days (DPO)

Debtor Days (DSO)

Contract Payment Terms

Work in Progress

Unbilled

Broken Promise(s)

Inventory (DSI)

It is certainly also a commercial issue!

Group Financials

FY 2013

Key Events

40

Key events 2013

Sharper focus

Divestment of non-core activities: Continued alignment of business through divestment of non-core activities; Pest control activities in 12 countries in May 2013, the Nordic damage control activities in August 2013. In 2014 further significant divestments have been announced1

Financing

ISS refinanced its Second Lien facility, as well as amended and extended the predominant part of its Senior Secured Credit Facilities and obtained greater flexibility. ISS furthermore partially redeemed DKK 2.4 billion of its 8.875% Senior Subordinated Notes due 2016

Operational performance

Focus continued on generating profitable organic growth, resilient margins, and strong cash flow. Solid results generated through especially Emerging Markets, IFS and Global Corporate Clients. In 2013 ISS launched and now operates some of the largest international IFS contracts in the industry. Furthermore, ISS was ranked the world’s leading outsourcing provider by IAOP

1) The divestments of the commercial security activities in the Pacific region and the landscaping activities in France have been signed, but not yet completed

Strengthened management team: The Executive Group Management Board has been further strengthened allowing ISS to align the organisation and increase focus in the markets where ISS operates

Preliminary Results

Summary of key objectives

Organic growth reached 4.3% in 2013 with Q4 2013 finishing particularly strong at 5.0%

Growth was driven by both developed and emerging markets as well as the start-ups of the Barclays and Novartis contracts

Growth was among others affected by challenging macroeconomic conditions in certain European countries, weak demand for non-portfolio services, timing of contract start-ups and exiting customer contracts with unsatisfactory conditions

The margin was 5.5% in 2013 compared with 5.6% in 2012. However, the margin improved 0.2 pp. in Q4 2013 compared with Q4 2012

Adjusted for the impact of the divested pest control activities the operating margin for 2013 was slightly improved compared with 2012

The margin was supported by improved margins in Nordic and Latin America, offset by strategic divestments as well as start-up of multinational IFS contracts and the impact of operational challenges in certain countries in Europe and the Americas

Organic Growth 4.3% Operating Margin1) 5.5% Cash conversion2) 102%

Strong cash conversion was 102% in 2013 compared with 103% in 2012

The result reflects strong cash flow performance across the Group

ISS continued efforts to secure payment for work performed and to exit customer contracts with unsatisfactory payment conditions

These efforts led to a decrease in debtor days of more than one day compared with 2012

42

1) The Group uses Operating profit before other items for the calculations instead of Operating profit. Consequently, the Group excludes from the calculations those items recorded under Other income and expenses, net, in which the Group includes income and expenses that it believes do not form part of the Group’s normal ordinary operations, such as gains and losses arising from divestments, remeasurement of disposal groups classified as held for sale, the winding up of operations, acquisition and integration costs, disposals of property and restructurings.

2) Cash conversion is defined as Operating profit before other items plus Changes in working capital as a percentage of Operating profit before other items

2009 2010 2011 2012 2013

50.0

55.0

60.0

65.0

70.0

75.0

80.0

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Revenue Organic growth

DK

K b

illio

n

REVENUE AND ORGANIC GROWTH

2009 2010 2011 2012 2013

3.0

3.2

3.4

3.6

3.8

4.0

4.2

4.4

4.6

4.8

5.0

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

Operating profit before other items Operating margin

DK

K b

illio

n

OPERATING PROFIT AND OPERATING MARGIN

2009 2010 2011 2012 2013

50

60

70

80

90

100

110

CASH CONVERSION

Revenue growth by region

5%

1%

15%

-1%

7%

2%

5% 4%

-3%-3%

0%

-4%

0%

-1%

0%

-2%

-1%

-3%

-6%

-10%-10%

-3%

-2%

-3%

1%

-5%

9%

-15%

-3%-2%

3%

-1%

(16)%

(12)%

(8)%

(4)%

0%

4%

8%

12%

16%

Western Europe Nordic Asia Pacific Latin America North America Eastern Europe Group

Organic growth Acquisition & Divestments, net FX Total growth1) Other Countries, which include Bahrain, Cayman Island, Cyprus, Egypt, Morocco, Nigeria, Qatar, Pakistan, Saudi Arabia, South Africa, South Korea, Ukraine and United Arab Emirates, are not shown as a separate region but included in Group figures

43

1)

WesternEurope

Nordic Asia Pacific LatinAmerica

NorthAmerica

EasternEurope

Group

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

6.1%

6.7%

7.7%

5.2%

2.4%

4.3%

6.4%

5.6%

6.0%

7.4%7.6%

5.0%

3.9%

2.9%

6.6%

5.5%

2012 2013

Operating Margin1)

2)

44

1) The Group uses Operating profit before other items for the calculations instead of Operating profit. Consequently, the Group excludes from the calculations those items recorded under Other income and expenses, net, in which the Group includes income and expenses that it believes do not form part of the Group’s normal ordinary operations

2) Other Countries, which include Bahrain, Cayman Island, Cyprus, Egypt, Morocco, Nigeria, Qatar, Pakistan, Saudi Arabia, South Africa, South Korea, Ukraine and United Arab Emirates, are not shown as a separate region but included in Group figures

WesternEurope

Nordic Asia Pacific LatinAmerica

NorthAmerica

EasternEurope

Group0%

20%

40%

60%

80%

100%

120%

140%

103% 104%

95%

99% 99%94%

107%103%101%

96%

106%

115%

40%

109%

101% 102%

2012 2013

Cash Conversion1)

45

1) Cash conversion is defined as Operating profit before other items plus Changes in working capital as a percentage of Operating profit before other items

Capital Structure

Continued focus on deleveraging1

47

2009 2010 2011 2012 2013

30.9 30.6 29.9

26.0

22.7

6.5

6.0

5.8

4.9

4.5

Net debt, carrying amount (DKK bn) PF Net leverage (x)¹

2

1) Leverage measured to Pro forma Adjusted EBITDA. Proforma adjusted EBITDA reflects Adjusted EBITDA as if all acquisitions and divestments had occurred on January 1 of the respective year2) Measured at Adjusted EBITDA the leverage was 4.44x

OTPP and KIRKBI investment in August 2012

(DK

K b

n)

Ability to pay significant interests in a challenging macro-economic environment

Accelerated deleveraging supported by proceeds from divestments and new equity raised allowing repayment of the more expensive part of the debt

Repaying expensive debt further supports deleverage by saving significant interest cost in 2013

2014 2015 2016 2017 20180

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

380 1,304

509

4,933

15,904

824

1,204

4,288

2,421 2,984

1,912

Senior Facilites Medium Term Notes due 2014 Senior Subordinated Notes due 2016 Securitisation

DK

Km

Maturity profile as per 31 December 20131)

1) The maturity profile above is based on the principal commitment values of the debt and does not reflect the actual drawn amount of debt

48

UK Operational Management Meeting

January 2014

Financial Presentation

50

ISS UK – KPI’s – January 2014

United Kingdom

£'000

Actual Budget Previous Year Var/Budget Actual Budget Previous Year Var/Budget

Total Revenue

Revenue 83,538 83,538 83,583 (1) 83,538 83,538 83,583 (1)

Organic Growth

Organic Growth (0.1) (0.1) 10.3 (0.0) (0.1) (0.1) 10.3 (0.0)

Working Capital

Changes in Working Capital (72,794) (71,299) (67,539) (1,495) (72,794) (71,299) (67,539) (1,495)

CBIII % 6.0 6.0 6.0 0.0 6.0 6.0 6.0 0.0

Cash conversion LTM 103 92 93 11

EMC2 (0.1) (0.1) 64.5 (0.0)

Debtor Days

Calculated Debtor Days 44.2 43.7 40.8 0.5

January 2014

Current Month Year To Date

Q&A

51