Starting July 2019, ISS will deliver Integrated Facility Services to Deutsche Telekom at approximately 9,000 sites across Germany until 2029. Once fully operational, the partnership will become the largest contract within the ISS Group.
ISS (ISS.CO, ISS DC, ISSDY), a global leading facility services provider, today announced a ten-and-a-half-year contract with Deutsche Telekom to deliver Integrated Facility Services across Germany.
The partnership covers several thousand buildings, antennas, towers, masts and other technical assets.
More than 6,000 employees will be working on the new contract which, once fully operational, will amount to approximately 4% of 2016 Group revenue.
ISS Group CEO Jeff Gravenhorst says:
'This is the single-biggest contract in ISS' history, and we are very proud of the trust Deutsche Telekom shows us with this contract. This is an excellent example of an outcome-based partnership, where we will work closely with our customer to ensure a reliable, transparent and high-quality service setup. Together, we will drive innovation and bring ISS' entire suite of value-creating concepts to life.'
Services will include property services, including a significant technical services component; cleaning services; support services; facility management; as well as capital project support. ISS will implement well-tested concepts such as FMS@ISS, a facility management system providing transparent data on facilities and workflows, and Touchpoints@ISS, a user-centric framework created to ensure value to end-users on their daily workplace journey.
ISS will also use the latest sensor technology and other IoT-solutions to gather information about usage of the facilities and the status of technical equipment and occupancy intelligence to further optimise building efficiency and end-user experience.
Jacob Götzsche, Regional CEO of Central Europe, says:
'This is a real game-changer for ISS Germany, more than doubling the country revenue. Being able to enter into a partnership of this size owes much to our dedicated people in Germany under the skilled management of ISS Germany's CEO Alexander Granderath, as well as the backing from our global organisation and the sharing of volumes, concepts and talents across the ISS world.'
The contract will start July 2019, but given the size of Deutsche Telekom's portfolio, ISS will incur significant transition and migration costs, starting Q4 2017. The scale and nature of these costs, which reflect the required transformation of service delivery, are fully covered in the pricing model over the term of the contract.
ISS will host an analyst and investor call at 15:00 CEST on 18 October, 2017.
Group CEO Jeff Gravenhorst and Group CFO Pierre-François Riolacci will be present on the call.
Dial-in details as follows:
London, United Kingdom: +44 (0) 20 3427 1913
New York, United States of America: +1 212 444 0895
Copenhagen, Denmark: +45 38 32 28 69
PIN/confirmation code: 3450744
For investor enquiries
Nicholas Ward, Head of Group Investor Relations, +45 38 17 62 51
Martin Kjær Hansen, Senior Investor Relations Manager, +45 38 17 64 31
For media enquiries
Lena Stennicke, Global Media Relations Manager, +45 38 17 65 03
About Deutsche Telekom
Deutsche Telekom is one of the world's leading integrated telecommunications companies, with some 165 million mobile customers, 28,5 million fixed-network lines, and 18,5 million broadband lines. Deutsche Telekom is present in more than 50 countries. With a staff of some 218,300 employees throughout the world, Deutsche Telekom generated revenue of 73,1 billion Euros in the 2016 financial year, about 66 percent of it outside Germany. For more information, visit http://www.telekom.com/
About ISS
The ISS Group was founded in Copenhagen in 1901 and has grown to become one of the world's leading Facility Services companies. ISS offers a wide range of services such as: Cleaning, Catering, Security, property and Support Services as well as Facility Management. Global revenue amounted to DKK 79.1 billion in 2016 and ISS has approximately 492,000 employees and activities in more than 70 countries across Europe, Asia, North America, Latin America and Pacific, serving thousands of both public and private sector customers. For more information, visit www.issworld.com.
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