ISS to Increase Organic Growth by Accelerating its Key Account Transformation

ISS has proven its ability to win and grow Key Account customers and now plans to strengthen its position further in a market place that offers compelling, long-term growth potential. A two-year programme of expedited investment will catapult delivery capabilities and the Key Account customer value proposition.  This investment will encompass services (e.g. workplace, technical, catering) and platform (e.g. technology, data and innovation). It will include project-related operating expenditure, capital expenditure and selected M&A.

This transformation will be fully financed by reallocating capital from areas that are not core to the Key Account story

• Operations in 13 countries will be divested – Thailand, Philippines, Malaysia, Brunei, Brazil, Chile, Israel, Estonia, Czech Republic, Hungary, Slovakia, Slovenia and Romania.  These country exits will not impact our delivery to Global or Regional Key Account customers.
• In addition, the exit from non-core services will be concluded by divesting a number of business units across the group – entirely consistent with ISS’s strategy of recent years.
• All country and business unit divestments are expected to be completed by the end of 2020.
• These divestments will significantly simplify the business, reducing complexity and risk.
• The two-year programme of expedited investment is expected to yield attractive financial returns. Operations in 13 countries will be divested – Thailand, Philippines, Malaysia, Brunei, Brazil, Chile, Israel, Estonia, Czech Republic, Hungary, Slovakia, Slovenia and Romania.  These country exits will not impact our delivery to Global or Regional Key Account customers.
      
  ISS CEO Australia and New Zealand, Scott Davies, commented: “These bold decisions reflect our strong commitment towards Key Account customers. We will focus our capital and resource on customers and services that can truly benefit from our future investment in processes, technology and innovation. This acceleration of our strategy will improve our offering for Key Account customers.”
  
  ISS’s strategy – The ISS Way – has already created a more focused organisation, with stricter decision-making around the customers it wishes to serve and the services it provides. Considerable progress has been made, in driving growth of Integrated Facility Services (IFS) for Key Account customers, especially Global Key Accounts.  ISS will now strengthen and fully leverage its operating platform to drive stronger organic growth into the medium term.