ISS (ISS) Investor Update summary

Q1 performance

• Revenue was DKK 20.9bn, up 4.2% YoY; organic growth was 4.3%, versus 6.0% in Q1 2024.

• Price increases contributed 4.5 percentage points to organic growth, volume growth 0.5 points, and net contract wins reduced it by ~2 points.

• Projects and above-base work, 15% of revenue, grew organically by 7.9%; key account customers generated 3% organic growth.

• Central & Southern Europe led regional growth at 9%; Americas declined 9%, mainly due to deliberate exits and prior-year contract losses.

• Operating margin and free cash flow developed in line with expectations; retention was 94% LTM.

Commercial and strategic progress

• Four new contracts with annual revenue above DKK 100m were secured; five large key account contracts were extended in Q1, including one with significant scope expansion.

• By 5 May, seven large key account contracts had been extended, three with significant scope expansions; mobilisation of 2024 wins, notably DWP in the UK, continued as planned.

• Three global strategic priorities replaced the previous five; Q1 work focused on initiative plans, milestones, targets and management oversight.

• Workplaces are evolving: 81% of employees work in a hybrid model and 64% are motivated by improved facilities; focus is on workplace experiences that support engagement and productivity.

• A leaner executive structure is accelerating execution and decision-making; commercial initiatives are gaining momentum in targeted customer segments.

Capital allocation and arbitration

• A DKK 2.5bn share buyback began in February for execution over 12 months; 3,515,993 shares worth DKK 563m had been repurchased by 2 May, with over DKK 600m completed by the investor update.

• DKK 575m dividend was paid; 11.5 million shares were cancelled at the April 2025 AGM, resulting in a 10% payout yield for 2025.

• The final oral hearing in the Deutsche Telekom arbitration is scheduled for mid-July 2025; claims and disputed remuneration for services performed remain outstanding.