International Workplace Group Plc · LSE:IWG
International Workplace — Investor Day (December 2025)
58 slides from International Workplace's investor day presentation, December 2025
Slide 1: Charlie Steel, Chief Financial Officer
Charlie Steel Chief Financial Officer
Slide 2: The Plan in December 2023
The Plan in December 2023 Investor Day - December 2025 2 We set out a clear plan at the Investor Day in December 2023, and we are delivering it What we said1 What we have delivered Open centre location count increased by 32% to 4,434 since the end of 2023 and over 1 million rooms open; Growth of cov
Slide 3: Continuation of the plan
Continuation of the plan Investor Day - December 2025 3 What we intend to deliver from here • Continue the journey toward our EBITDA target of at least $1bn in the medium term • Massive growth in recurring management fee income • Delivery towards the 30% gross margin target in Company-owned • Contin
Slide 4: Evolution of EBITDA to $1bn target
Evolution of EBITDA to $1bn target Investor Day - December 2025 4 1,200 Combination of revenue growth via price and new product 1,000 offerings coupled with efficiency-based cost savings 800 Continued tight cost control however some administrative overheads expected to increase as network and covera
Slide 5: Further clarity in reporting
Further clarity in reporting Investor Day - December 2025 5 We are continuing to make the financials easier to understand • We changed our functional and reporting currency to USD in Jan 2024 and in H1 2025 we Managed Lease Agreements transitioned accounting standards to US GAAP • IWG operates the l
Slide 6: Digital & Professional Services
Digital & Professional Services Investor Day - December 2025 6 Integration and impact on financials Impact of integrating D&PS • No impact on group financials or cash, we are As Reported Company- Managed & owned Franchised adjusting how we present the numbers to FY 2023 ($m) System Revenue 473 402 7
Slide 7: Managed & Franchised: Breakdown of the income streams
1. Managed & Franchised Investor Day - December 2025 7 Breakdown of the income streams Recurring Management Fees Franchise & JV Fees Other Services Driver / KPI • Rooms • Rooms • Openings • RevPAR • RevPAR • Signings • Customers FY 2024 H1 2025 FY 2024 H1 2025 FY 2024 H1 2025 Revenue ($m) 21 22 40 2
Slide 8: Managed & Franchised
1. Managed & Franchised Investor Day - December 2025 8 Now includes all our capital-light business lines FY 2023 ($m) Prior Proforma Change System Revenue 427 498 17% • Novation of Managed Lease Agreements: Group Revenue 61 132 116% Adjusted Gross Profit 61 132 116% Adj GP Margin 100.0% 100.0% • Due
Slide 9: Company-owned
2. Company-owned Investor Day - December 2025 9 Receives virtual office revenues and costs for its locations FY 2023 ($m) Prior Proforma Change System Revenue 3,230 3,632 12% Group Revenue 3,230 3,632 12% Adjusted Gross Profit 689 846 23% • Virtual Office revenue will now be reported with the Adj GP
Slide 10: No change to strategy
No change to strategy Investor Day - December 2025 10 Transition to capital-light network continues at a faster pace H1 H1 2023 2025 System • As we continue our evolution into an increasingly Revenue 12% capital-light business; our plans, and targets 19% remain unchanged +7ppt 88% 81% • Expand margi
Slide 11: Managed & Franchised: Unprecedented growth continues
1. Managed & Franchised Investor Day - December 2025 11 Unprecedented growth continues Managed partnerships room evolution since 2023 • Open rooms doubled between Dec 2023 and June 500 2025 to 247k rooms 450 400 350 221 +2x • Including pipeline this increases by an additional 300 Rooms (‘000) c.90%
Slide 12: Managed Partnership RevPAR as expected
1. Managed & Franchised Investor Day - December 2025 12 Managed Partnership RevPAR as expected RevPAR evolution • RevPAR of new Managed Partnerships evolving in 300 line with previous cohorts but slightly slower than the original 18 month expectations 250 • At the end of June 2025, revenue is being
Slide 13: Very strong growth in recurring management fees
1. Managed & Franchised Investor Day - December 2025 13 Very strong growth in recurring management fees 700 Estimated number of Managed & Franchised rooms open 625 • Recurring management fees generated from 600 535 Managed Partnerships expected to grow Rooms open (000) significantly due to the matur
Slide 14: How we will drive margins to 30%
2. Company owned Investor Day - December 2025 14 How we will drive margins to 30% 40.00% Strategy to drive occupancy higher supported by recent promotional activity resulting in higher occupancy and pricing 35.00% 30.00% 25.00% Property taxes and contractual 20.00% increases outside of IWG’s control
Slide 15: Pricing evolution gives confidence for further revenue growth in 2026
2. Company owned Investor Day - December 2025 15 Pricing evolution gives confidence for further revenue growth in 2026 • Our strategy in Company-owned to drive revenue has been to increase occupancy via promotions for 110.0 76.0% new customers 109.0 75.5% 108.0 75.0% • Occupancy, for customers signi
Slide 16: Overheads and evolution
Overheads and evolution Investor Day - December 2025 16 Core overheads 300 261 250 • IWG maintains tight cost control which has 200 historically kept cost growth below inflation $m 150 Growing • As network and coverage grows there will be 100 around inflation some additions in core overheads for rel
Slide 17: Capex will continue to be controlled
Capex will continue to be controlled Investor Day - December 2025 17 Maintenance capex to be $100m and grow with inflation • Historical capex has been weighted towards growth capex for new locations • Capex spent on new locations is depreciated over the term of the first lease – typically 10 years E
Slide 18: As a result, depreciation set to fall markedly
As a result, depreciation set to fall markedly Investor Day - December 2025 18 Incremental to earnings 600 • Depreciation is significantly higher than capex 500 today • Centre fit out capex is depreciated over the life 400 of the first lease, typically 10 years despite 300 many of our centres being
Slide 19: Landlord contribution on leased buildings amortisation
Landlord contribution on leased buildings amortisation Investor Day - December 2025 19 3 Also set to decline • Historically, when IWG signed a lease with a landlord in the Company-owned division, the landlord would How Landlord contribution on leased buildings amortisation is set to evolve contribut
Slide 20: Cashflow conversion
Cashflow conversion Investor Day - December 2025 20 600 FY 2024 500 Improves as EBITDA grows 400 300 200 100 • As EBITDA grows, cashflow is expected to increase as 0 incremental EBITDA is cash x res al st l A ns ita n pe ITD ies cru ere ort pro utio tio su ap Ca e a re tio rty vit EB era I nt ac Cl
Slide 21: IWG's current $130m share buyback programme
IWG’s current $130m share buyback programme Investor Day - December 2025 21 Stable buyback programme which has also taken advantage of share price weaknesses 1,000 2.40 900 2.30 800 Shares repurchased (k) 2.20 700 2.10 Share price (£) 600 2.00 500 1.90 400 1.80 300 1.70 200 1.60 100 1.50 0 Mar-25 Ap
Slide 22: Evolution of capital allocation priorities
Evolution of capital allocation priorities Investor Day - December 2025 22 Old IWG New IWG Capital required for… Capital flexibility… Real estate leases and growth Disciplined capital expenditure capex Debt paydown Maintaining financial resilience M&A activity Targeted investments for growth
Slide 23: Disciplined and clear capital allocation: buyback to continue into 2026
Investor Day - December 2025 Disciplined and clear capital allocation to return surplus capital to 23 shareholders: Buyback to continue into 2026 #1: #2: #4: Financial Investing in #3: Dividends Share buyback resilience the business to return capital Maintaining BBB Investment Grade credit rating St
Slide 24: The Plan from December 2025
The Plan from December 2025 Investor Day - December 2025 24 Continued accelerating growth over the next few years What we expect to deliver KPIs for delivery Growth of coverage and network Continue to sign and open more locations Rapid growth in Managed & Franchised Continued growth in recurring man
Slide 25: Outlook
Outlook Investor Day - December 2025 25 FY 2026: Short term outlook • EBITDA growth in 2026 expected to be driven by primarily by revenue increase rather than cost reduction • Adjusted EBITDA guidance of $585m - $625m • Key assumption is at least 4% growth in Company-owned revenue - this is performi
Slide 26: Conclusion
Conclusion Investor Day - December 2025 26 New text • IWG has continued to deliver on its strategy • Strategic pace set to increase • Focus on cash generation • Sensible investment • D&PS integration • No change to core strategy • Confident on outlook
Slide 27: Thank you
Investor Day - December 2025 Thank you
Slide 28: Q&A
Investor Day - December 2025 Q&A
Slide 29: Appendix
Investor Day - December 2025 Appendix
Slide 30: Clarity of presentation
Investor Day - December 2025 Clarity of presentation Investor Day - December 30 2025 We are continuing to make the financials clearer to understand • Post the Investor Day in 2023, we made two changes to better align the presentation of our financials with the operation of our business: • Functional
Slide 31: Managed Lease Agreements
Investor Day - December 2025 Managed Lease Agreements Investor Day - December 31 2025 The different types of agreements with landlords, and how are they treated Franchise Managed Managed Lease Conventional Flexible Agreements Partnerships Agreements • Traditional long-term lease • Like a traditional
Slide 32: Managed Lease Agreements: now treated net
Investor Day - December 2025 32 Managed Lease Agreements They were treated gross…they will now be treated net Impact of the MLA change • Why gross? FY 2023 ($m) Company- Managed & Total • Due to the word ‘Lease’ in the agreements IWG recognised all revenue and all owned Franchised costs, despite gro
Slide 33: Enterprise Managed Contract leases
Investor Day - December 2025 Enterprise Managed Contract Investor Day - December 33 2025 leases • In the Enterprise Managed Real Estate business, IWG enters into ‘back to back’ lease agreements with both the Landlord, and the end enterprise tenant (IWG’s customer) • IWG enters a head lease with a La
Slide 34: Pre-opening services
Investor Day - December 2025 34 Pre-opening services • What are pre-opening services? Example of the change: • Comprise items such as IT equipment, printers, coffee machines that are sold to managed centre landlords prior to opening Assume pre-opening services costs $85 $ Prior Method New Method • H
Slide 35: Delinquent customer revenue recognition
Delinquent customer revenue recognition Investor Day - December 2025 35 Simplifying revenue recognition driven by partner reporting Historically IWG has continued to bill customers who have not paid for longer than 5 months until the end of their agreements, and recognised the revenue when the servi
Slide 36: IFRS to US GAAP Conversion
IFRS to US GAAP Conversion June 2025
Slide 37: Caution statement
Caution statement IWG: US GAAP Conversion 37 June 2025 No representations or warranties, express or implied are given in, or in respect of, this presentation or any further information supplied. In no circumstances, to the fullest extent This presentation may contain forward-looking The Company unde
Slide 38: Introduction
Introduction IWG: US GAAP Conversion 38 June 2025 • As previously announced, IWG is transitioning to US GAAP from IFRS as it better reflects the financial profile of the business and how the business is run. • US GAAP results are similar to Pre-IFRS16, which is how the business has reported alongsid
Slide 39: Key changes resulting from transition to US GAAP
Key changes resulting from transition to US GAAP IWG: US GAAP Conversion 39 June 2025 Item Explanation Our overall economics Accounting change does not impact the underlying business. No US GAAP P&L and Cashflow is similar to pre-IFRS16, which is aligned to how the business has always been How we ru
Slide 40: US GAAP primary areas of change
US GAAP primary areas of change IWG: US GAAP Conversion 40 June 2025 Impact Areas High level explanation of change Statement of Balance Sheet Cash flow Operations US GAAP: Classified as operating leases, resulting in a ROU asset and lease liability on the balance sheet which unwind through a “straig
Slide 41: Summary changes to FY24 financials
Summary changes to FY24 financials IWG: US GAAP Conversion 41 June 2025 KPI Change impact IFRS US GAAP Explanation US GAAP includes sublease income (specific to the back-to-back transactions within Revenue $3,690m $3,756m DPS). Lower lease/rent expense from previously impaired centres that remain op
Slide 42: Summary modelling considerations on FY24 financials
Summary modelling considerations on FY24 IWG: US GAAP Conversion 42 June 2025 financials KPI US GAAP Outlook impact (US GAAP as base for outlook impact) Revenue $3,756m One-off impact of including sublease income (specific to the back-to-back transactions within DPS). Lower lease/rent expense from p
Slide 43: Leases: Key IFRS to US GAAP accounting differences
Leases | Key IFRS to US GAAP accounting IWG: US GAAP Conversion 43 June 2025 differences Impac Description IFRS US GAAP Implication t Classification of • All leases accounted for as finance leases • All leases recognised as operating leases • Leases accounted for as operating leases leases as operat
Slide 44: Leases: Impact on P&L relative to cashflow
Leases | Impact on P&L relative to cashflow IWG: US GAAP Conversion 44 June 2025 Example 1 Example 2 Example 3 Assumptions Assumptions Assumptions • 10 Year Lease @ $100 per annum • 10 Year Lease @ $100 per annum • 10 Year Lease @ $100 per annum • 1 year rent free • 1 year rent free • 1 year rent fr
Slide 45: Leases: Impact on the key statements for FY24
Leases | Impact on the key statements for FY24 IWG: US GAAP Conversion 45 June 2025 Statement of IFRS US GAAP Pre-IFRS16 US GAAP Operations All leases classified as operating Revenue $$$$$ $$$$$ leases resulting in single lease expense within cost of sales Cost of sales (excl. lease ($$) ($$$$) US G
Slide 46: US GAAP: Statement of operations (P&L)
US GAAP | Statement of operations (P&L) IWG: US GAAP Conversion 46 June 2025 Year Ended December 31, (in millions, except per share amounts) 2024 2023 2022 Revenue $ 3,756 $ 3,764 $ 3,432 Cost of sales exclusive of items shown separately below 2,808 2,879 2,804 Gross profit 948 885 628 Sales and mar
Slide 47: IFRS to US GAAP: Statement of operations (P&L)
IFRS to US GAAP | Statement of operations (P&L) IWG: US GAAP Conversion 47 June 2025 IFRS ($’m) IFRS ($’m) US GAAP Reported After reclasses US GAAP Adjustments ($'m) US GAAP presentation 3. Capex (incl. reclasses LL TI) and 4. Acquisitions 5. Income Tax FY24 FY24 1. Leases 2. Intangibles and Disposa
Slide 48: Alternative Performance Measures: Adjusted EBITDA and Net Debt
Alternative Performance Measures |Adjusted IWG: US GAAP Conversion 48 June 2025 EBITDA and Net Debt Adjusted EBITDA US GAAP ($'m) US GAAP ($'m) US GAAP ($'m) Ref FY2024 FY2023 FY2022 Operating income (loss) 1 42 (98) (1 69) [1 ] Ref Add back: 333 386 369 1 2024 US GAAP consolidated statement of oper
Slide 49: Pre-IFRS16 to US GAAP bridge: FY23 Adjusted EBITDA
Pre-IFRS16 to US GAAP bridge IWG: US GAAP Conversion 49 June 2025 FY23 Adjusted EBITDA ($'m) 503 (11) 463 (29) $(40)m Pre-IFRS16 adj. EBITDA Leases Impact Disallowed expense US GAAP adj. EBITDA capitalisation Leases impact comprises a positive impact on adjusted EBITDA due to 1) lower Capitalised ex
Slide 50: Pre-IFRS16 to US GAAP bridge: FY24 Adjusted EBITDA
Pre-IFRS16 to US GAAP bridge IWG: US GAAP Conversion 50 June 2025 FY24 Adjusted EBITDA ($'m) 557 501 (37) (19) $(56)m Pre-IFRS16 adj. EBITDA Leases impact Disallowed expense US GAAP adj. EBITDA capitalisation Leases impact comprises a positive impact on adjusted EBITDA due to 1) lower Capitalised ex
Slide 51: US GAAP: Balance sheet
US GAAP | Balance sheet IWG: US GAAP Conversion 51 June 2025 As of December 31, (in millions, except share and per share amounts) 2024 2023 Assets Current assets: Cash and cash equivalents $ 137 $ 130 Accounts receivable, net 651 628 Prepaid expenses 152 162 Other current assets 391 388 Total curren
Slide 52: US GAAP: Balance sheet
US GAAP | Balance sheet IWG: US GAAP Conversion 52 June 2025 As of December 31, (in millions, except share and per share amounts) 2024 2023 Shareholders’ deficit Common stock; par value $0.0124; 8,000,000,000 shares authorised, 1,057,248,651 issued and outstanding as of December 31, 2024 and 2023, r
Slide 53: IFRS to US GAAP bridge: Balance sheet – Assets & Liabilities
IFRS to US GAAP bridge | Balance sheet IWG: US GAAP Conversion 53 June 2025 – Assets & Liabilities IFRS ($'m) IFRS ($'m) After Reported US GAAP Adjustments US GAAP ($'m) US GAAP reclasses presentation Opening Opening balance balance 3. Capex (incl. reclasses LL TI) and 4. Acquisitions 5. Taxes and F
Slide 54: IFRS to US GAAP bridge: Balance sheet - Equity
IFRS to US GAAP bridge | Balance sheet - Equity IWG: US GAAP Conversion 54 June 2025 IFRS ($'m) IFRS ($'m) After Reported US GAAP Adjustments US GAAP ($'m) US GAAP reclasses presentation Opening Opening reclasses 3. Capex (incl. balance balance 4. Acquisitions 5. Taxes and FY24 FY24 1. Leases 2. Int
Slide 55: US GAAP: Cash flow statement
US GAAP | Cash flow statement IWG: US GAAP Conversion 55 June 2025 Year Ended December 31, (in millions) 2024 2023 2022 Cash Flows from Operating Activities: Net income (loss) $ 18 $ (209) $ (192) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation a
Slide 56: US GAAP: Cash flow statement (cont.)
US GAAP | Cash flow statement (cont.) IWG: US GAAP Conversion 56 June 2025 Year Ended December 31, (in millions) 2024 2023 2022 Cash Flows from Financing Activities: Proceeds from issuance of long-term debt 808 1,237 1,684 Proceeds from issue of Euro bonds 669 - - Payment of debt issuance cost (30)
Slide 57: Pre-IFRS16 to US GAAP bridge: Cash flow
Pre-IFRS16 to US GAAP bridge | Cash flow IWG: US GAAP Conversion 57 June 2025 • Under IFRS (and pre-IFRS16), capex is Pre-IFRS16 ($’m) | US GAAP ($'m) Reported Change recognised on an accrual basis with FY24 FY24 the balance being recognised through working capital when the Adjusted EBITDA - PRE-IFR
Slide 58: Like-for-like guidance under US GAAP
Like-for-like guidance under US GAAP IWG: US GAAP Conversion 58 June 2025 KPI pre-IFRS16 US GAAP Comments Unchanged – remains medium term Medium-term adjusted EBITDA $1bn $1bn target as leases impact reduces Recalibrated like-for-like in line with 2025 adjusted EBITDA $580m-$620m $525m-$565m 2024 US
International Workplace Group — Investor Day (December 2025) on 6ix