International Workplace Group Plc · LSE:IWG
International Workplace — FY2024 Earnings Presentation
40 slides from International Workplace's earnings presentation, Mar 4, 2025
Slide 1: Financial results for the full year ending 31.12.2024
Financial results for the full year ending 31.12.2024 4 March 2025
Slide 2: Caution statement
Caution statement 2024 FULL YEAR RESULTS 2 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 permitted This presentation may contain forward-looking The Company undert
Slide 3: Mark Dixon, Founder & Chief Executive Officer
2024 FULL YEAR RESULTS 3 Mark Dixon Founder & Chief Executive Officer
Slide 4: The IWG investment case
The IWG investment case 2024 FULL YEAR RESULTS 4 01 02 03 04 Market leader in a future Fast, capital-light Cash generation Global network in mega industry – Flexible growth while growing 120 countries with work / Platform work coverage advantage 05 06 07 08 40% revenue Scale delivering structural Ex
Slide 5: The growth opportunity
The growth opportunity 2024 FULL YEAR RESULTS 5 Total addressable market Market cap $3.4trn $2trn $5.7trn c. $83bn c. $2bn c. $125bn Sources: Bloomberg / 31/12/2024, TAM: airbnb S-1 Filing, Uber S-1 Filing
Slide 6: How we support landlords and CRE investors
How we support landlords and CRE investors 2024 FULL YEAR RESULTS 6 01 02 03 04 High value-add, cashflow Control of longevity and More sustainable Valuations moving and amenity value from future cashflows revenues towards cashflow from operating activated NAV property 05 06 07 08 Our scale, brands,
Slide 7: Any building. Any location.
Any building. Any location. 2024 FULL YEAR RESULTS 7 IWG has unrivalled capability to convert any building, in any location, into a commercially-successful, cash-generating operation. Grade A offices Suburban offices Business parks Retail Science labs Main street Train stations Service stations Reta
Slide 8: Concepts to meet your needs
Concepts to meet your needs 2024 FULL YEAR RESULTS 8 A diverse range of scalable concepts, uniquely tailored to maximise each building’s characteristics and revenue potential Office Member’s Science Medical Warehouse & On-the-go Managed Pre-built Workspace Clubs Labs Suites Workshop Workspace Spaces
Slide 9: The perfect brand for your space
The perfect brand for your space 2024 FULL YEAR RESULTS 9 Our extensive brand portfolio means we have the perfect brand to suit any type of concept and building
Slide 10: Create more value through additional amenities
Create more value through 2024 FULL YEAR RESULTS 10 additional amenities We can work with you to help develop & operate an impressive array of amenities to drive revenue & value to your portfolio. Conference facilities Wellness facilities 3D Printing Mail & Courier Service Storage & Lockers Podcast
Slide 11: Transforming centres through our CentreWorks service
Transforming centres through 2024 FULL YEAR RESULTS 11 our CentreWorks service Project Start Design Productised Expert support End of project Leveraging industry Supply Chain Expert team responsible leading AI tools Productised offering of for opening 1000+ combined with 30+ market leading furniture
Slide 12: We added more locations in 2024 than our competitors have in total
We added more locations in 2024 than 2024 FULL YEAR RESULTS 12 our competitors have in total 3,989 • We have a bigger network than 3,514 475 1,171 Centres in pipeline the top 10 competitors combined • We finished 2024 with 3,989 open centres and nearly 1m rooms # of locations • Our network covers ov
Slide 13: IWG's evolved operating model
IWG’s evolved operating model 2024 FULL YEAR RESULTS 13 1. Managed & Franchised 2. Company-owned IWG Network Route to market Multiple brands across multiple verticals to ensure we are the best solution to most customers Financial model • Locations without leases or IWG capex • Focus on expanding mar
Slide 14: IWG's evolved operating model (continued)
IWG’s evolved operating model 2024 FULL YEAR RESULTS 14 (continued) 3. Digital & Professional Services Concept • Providing tools and services to support employers and employees • Full booking systems & dashboards • Limited capex requirements Financial model • Increasingly moving towards a fee / subs
Slide 15: Significant benefits for our customers
Significant benefits for our customers 2024 FULL YEAR RESULTS 15 01 02 03 04 Technology changes Demand increases. Capex to opex rules for Tools – new multiple everything – technology Continued growth in majority of our clients layers of software offers continues to distort work companies moving to d
Slide 16: Unrivalled network with a full service offering
Unrivalled network with a full service offering 2024 FULL YEAR RESULTS 16 Functional Office-based Meet, confer Speciality Market Outsourcing Support range range & collaborate spaces presence packages services • Exec and VIP • Office on demand • Meeting rooms • Demonstration/ • National virtual • Sta
Slide 17: Complete suite of business tools
Complete suite of business tools 2024 FULL YEAR RESULTS 17 Management Booking Sustainability Consulting WFH product Membership Financial & user tools platform services range products products • Account • Digital book & pay • Paralegal and • Growing range of • Fully outsourced • Mitigation of • Packa
Slide 18: Customer case study: Global Technology Company
Customer case study: 2024 FULL YEAR RESULTS 18 IWG Network Usage Global Technology Company Revenue by Product Type Services 4% 8,300 Drop-in Visits 1 Flex Journey Parking 7% Office • IWG worked with our client to now provide 957 Locations Used1 access for its 120,000 employees to our global Day offi
Slide 19: Summary: Market leader in a structurally growing industry
Summary: Market leader 2024 FULL YEAR RESULTS 19 in a structurally growing industry • More companies, more demand • Record year financially and operationally • Continuing to deliver the strategy • On track to open more locations and rooms in 2025 than ever before • Expanding the range of concepts an
Slide 20: Financial performance
IWG 2024 FULL YEAR RESULTS 20 Financial performance Charlie Steel Chief Financial Officer
Slide 21: The Plan
The Plan 2024 FULL YEAR RESULTS 21 We set out a clear plan at the Investor Day in December 2023 and we are delivering it What we said1 What we are delivering " Delivering from three sources of cash" • All three divisions delivering underlying growth and cash • Revenue up 9% since 2022, cashflow up 6
Slide 22: Delivery of the plan with record results
Delivery of the plan 2024 FULL YEAR RESULTS 22 with record results • Highest-ever system-wide revenue with 6% growth in open-centres, and 2% net revenue growth to $4.2bn (2023: $4.1bn) • Highest-ever EBITDA with growth of 11% to $557m (2023: $503m) • Highest-ever network growth with 899 new centres
Slide 23: 1. Managed & Franchised
1. Managed & 2024 FULL YEAR RESULTS 23 Rooms (‘000) Managed partnerships room evolution through 2024 450 Franchised 182 367 400 350 300 250 30% growth in total fee income 200 62 185 150 123 100 • Total fees growing from new managed centres opening and continued growth in franchise centres 50 0 • Rec
Slide 24: 1. Managed & Franchised (continued)
1. Managed & Franchised (continued) 2024 FULL YEAR RESULTS 24 Managed Partnership RevPAR evolving as expected RevPAR RevPAR of managed partnerships evolution after ($/month) • RevPAR of new Managed Partnerships evolving 300 opening in line with previous cohorts TARGET 250 • 73,000 gross rooms added
Slide 25: 1. Managed & Franchised (continued)
1. Managed & 2024 FULL YEAR RESULTS 25 Franchised (continued) Rooms (‘000) Estimated future cumulative openings 300 216 250 200 Pipeline underpins future growth 150 150 216 92 100 42 50 • At the end of 2024, 185k Managed & Franchised rooms 0 were open, and 182k in the pipeline – when all rooms are H
Slide 26: 2. Company-owned
2. Company-owned 2024 FULL YEAR RESULTS 26 Contribution Margin (%) 30% 25% 25% $79m (11%) growth in Contribution 22% 20% 20% • Open centre revenue growth of 5% • Continued focus on costs driving margin expansion 15% • Growth capex declining and will continue to decline 10% 2022 2023 2024 RevPAR ($/m
Slide 27: 2. Company-owned (continued)
2. Company-owned 2024 FULL YEAR RESULTS 27 (continued) Contribution margin evolution Continued margin progression 30% 0 .4% 0.2% (0.9)% 4% 25% • Margin improvement of 251bps through the year, of which 25% 22% 184bps is recurring 20% • 5% open centre revenue growth alongside cost 15% discipline drivi
Slide 28: 3. Digital & Professional Services
3. Digital & Professional 2024 FULL YEAR RESULTS 28 Services Underlying revenue growth • Underlying revenue growth rate of 8% and EBITDA growth of 18% excluding the impact of the single contract exit $m 2024 2023 Growth rate − The exited contract accounted for a working Underlying revenue1 363 335 8
Slide 29: Disciplined cost control and targeted investment
Disciplined cost control and 2024 FULL YEAR RESULTS 29 targeted investment • Total overheads increased Core overhead 500 year-over-year driven by the 450 443 increase in investment 450 overheads 400 • Investment overheads are 350 Discretionary overhead those which are incurred on a discretionary bas
Slide 30: Operational Cashflow Overview
Operational Cashflow Overview 2024 FULL YEAR RESULTS 30 Underlying revenue growth $m Company owned Managed & Franchised Digital & Professional All three divisions performing strongly Services Divisional Free Cash Flow 587 79 144 • Managed & Franchised network growth Growth capex and acquisitions (57
Slide 31: Record system revenue and cost control driving EBITDA
Record system revenue and cost control 2024 FULL YEAR RESULTS 31 driving EBITDA $700m 6 18 $600m 79 1 557 503 (14) $500m (36) $400m $300m $200m $100m - 2023 Revenue Net Managed & Core Digital & Overhead 2024 EBITDA Growth Openings Franchise Overheads Professional Investment EBITDA Fee Growth Service
Slide 32: A transformational year for finance operations and capital structure
A transformational year for 2024 FULL YEAR RESULTS 32 finance operations and capital structure • c$10m investment in core Finance systems • First full year operating with USD as functional currency − Reduction in constant vs actual currency delta − No debt now denominated in GBP and no exposure to U
Slide 33: Total capex continues to decline
Total capex continues to decline 2024 FULL YEAR RESULTS 33 With a continued pivot to systems Capital Managed & Company Digital & Managed & Company Digital & Change • Our capital-light strategy allowed us Professional 2024 Professional 2023 expenditure - $m Franchised Owned Services Franchised Owned
Slide 34: Summary P&L
Summary P&L 2024 FULL YEAR RESULTS 34 Return to EPS profitability Change • Record system revenue of $4.2bn driven by growth Preliminary results - $m 2024 2023 (%) in both Company-owned (5% across open System- wide revenue 4,231 4,157 2% centres), and Managed & Franchised (17%) Group revenue 3,690 3,
Slide 35: Why we focus on pre-IFRS 16 EBITDA
Why we focus on pre-IFRS 16 EBITDA 2024 FULL YEAR RESULTS 35 $m 2024 2023 • Adjusted EBITDA on an IFRS 16 basis is $1.8bn Operating profit 510 179 − Note that IFRS 16 EBITDA excludes IWG's largest cost – rent, and therefore is a meaningless figure Depreciation & amortisation 1,344 1,472 Adjusting it
Slide 36: Focus on cash
Focus on cash 2024 FULL YEAR RESULTS 36 $m 2024 2023 • Continued to grow our business and revenues whilst managing the cost base resulting in a cash inflow Adjusted EBITDA - pre- IFRS 16 557 503 of$298m Working capital (excl. amortisation of landlord contributions on leased (51) 118 property) • Work
Slide 37: Working Capital movements
Working Capital movements 2024 FULL YEAR RESULTS 37 H1 H2 • Working capital outflow of $47m in H1 2024 as $m 2024 2024 2024 discussed at the half year results in August, but Trade receivables and deferred revenue (21) (16) (5) broadly flat in H2 Customer deposit movements (excluding FX) 21 13 8 • De
Slide 38: Net Debt / EBITDA fallen further
Net Debt / EBITDA fallen further 2024 FULL YEAR RESULTS 38 Continued progress on de-levering, $190m cashflow before discretionary items 1.5x Net debt/ EBITDA 1.3x Net debt/ 775 EBITDA 14 17 712 27 5 678 11 61 (8) 36 585 72 93 (391) NON-CASH/ FINANCING ITEMS DISCRETIONARY ($34m) ($93m) Net financial
Slide 39: Financial model supports enhanced shareholder returns
Financial model supports 2024 FULL YEAR RESULTS 39 enhanced shareholder returns • Post the milestone debt refinancing extending debt maturities to 2029 / 2030, and the new revolving credit facility, the foundations are in place to consider further returns to shareholders • The capital allocation pol
Slide 40: 2025 and beyond
2025 and beyond 2024 FULL YEAR RESULTS 40 Delivering in-line with expectations • Management expects pre-IFRS 16 EBITDA to be in the range of $580m to $620m for 2025 • Cashflow generation in 2025 expected to be higher than in 2024 • Reiterate our medium-term EBITDA target of $1bn • US GAAP numbers be
International Workplace Group — FY2024 Earnings Presentation on 6ix