International Workplace Group Plc · LSE:IWG
International Workplace — H1 2022 Earnings Presentation
24 slides from International Workplace's earnings presentation, Aug 9, 2022
Slide 1: 2022 Interim Results
2022 INTERIM RESULTS 2022 Interim Results 9 August 2022 2022 Interim Results – 09 August 2022 1
Slide 2: Caution statement
2022 INTERIM RESULTS Caution statement No representations or warranties, express or implied are given in, or in respect of, be affected by other factors that could cause actual results, and our plans and this presentation or any further information supplied. In no circumstances, to the objectives, t
Slide 3: Key Financial highlights
2022 INTERIM RESULTS Key Financial highlights ✓ Strong demand as more companies move Key financial metrics, £m* H1 2022 H1 2021 Change to hybrid System-wide revenue 1,470.4 1,173.8 22.3% ✓ Performance improving month on month Revenue 1,309.5 1,044.4 22.9% ✓ Maintained almost flat cost base vs H2/21,
Slide 4: Why companies are moving to hybrid
2022 INTERIM RESULTS Why companies are moving to hybrid ✓ Reduce costs by c. 50% and create flexibility ✓ Economic uncertainty adding to customers’ cost pressures >6X GROWTH by 2030 ✓ Helps companies overcome resource challenges ✓ What people want • Only 1 in 5 now willing to commute for 30+ minutes
Slide 5: The best global network of brands
2022 INTERIM RESULTS The best global network of brands 2022 Interim Results – 09 August 2022 5
Slide 6: An unbeatable digital platform
2022 INTERIM RESULTS An unbeatable digital platform >6X GROWTH by 2030 Manages complexity for all Meets needs of businesses, flexible workspace individuals, employees and operations building owners Continued significant Designed for efficiency and investment – difficult to scale to support significa
Slide 7: Delivering on our strategic objectives
2022 INTERIM RESULTS Delivering on our strategic objectives ✓ Maximise company-owned performance - pre-2021 EBITDA £152m ✓ Capital-light growth – close to 50% of portfolio by year-end ✓ Leverage intellectual and digital assets – double-digit EBITDA growth ✓ Free cash flow generation – pre-21 centres
Slide 8: Strategic objective 1: Company-owned performance recovering towards historic margins
2022 INTERIM RESULTS Strategic objective 1 Company-owned performance recovering steadily towards historic margins CBITDA % 35 ✓ CBITDA impacted by cost inflation and other 30 headwinds 25 ✓ Delivering targeted margin improvement despite 20 challenging environment 15 ✓ On track to achieve 30% margin
Slide 9: Supportive trading trends
2022 INTERIM RESULTS Supportive trading trends Pre-2021 occupancy (%) New sales price (£) Services (£m) Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Recovering to pr
Slide 10: Excellent performance on cost control despite inflationary pressures
2022 INTERIM RESULTS Excellent performance on cost control despite inflationary pressures Pre-21 Centre cost (constant rate, underlying) SG&A excl. The Instant Group (constant rate, underlying) ✓ Despite inflationary pressures and increased investment in growth team we held costs flat, both 490 120
Slide 11: Strategic objective 2: Significant progress in capital-light growth
2022 INTERIM RESULTS Strategic objective 2 Significant progress in capital-light growth New centres signed ✓ Line of sight to 500+ signings in FY22 500 ✓ H1 - 70 openings with 76% partnered or 400 franchised 32% 300 36% 95% ✓ Franchise and partnered deals on track to be close to 50% by year end 200
Slide 12: Strategic objective 3: Creating the world's largest digital workspace platform
2022 INTERIM RESULTS Strategic objective 3 Creating the world’s largest digital workspace platform ✓ Building the world's leading provider of digital workspace services ✓ Network of 30,000 buildings in 175 countries, operating 24/7 in 40 languages ✓ Very strong independent management team ✓ Added Da
Slide 13: Strategic objective 4: Strong and improving open centre cash flow generation
2022 INTERIM RESULTS Strategic objective 4 Strong and improving open centre cash flow generation Strong underlying cash flow ✓ Strong growth in cash flow from pre-21 centres 261.3 1.2 ✓ Well controlled maintenance capex (32.3) ✓ Partnering minimises net growth capex, delivering capital-light growth
Slide 14: ESG – on track to become carbon neutral during 2023
2022 INTERIM RESULTS ESG – on track to become carbon neutral during 2023 Investment Improvement Carbon Removal Prioritising low carbon Measuring and improving the Leveraging commercial offset properties and buildings with performance of our existing schemes to accelerate low carbon energy suppliers
Slide 15: Financial results
2022 INTERIM RESULTS Financial results Total Group ✓ Strong Group revenue performance +22.9% £m H1 2022* H1 2021* ✓ Open centre revenue +27.8% to £1,300.9m Revenue 1,309.5 1,044.4 - Sequential month-on-month improvement Adjusted Gross profit/(loss) 141.7 (16.1) - Double-digit improvement across all
Slide 16: Revenue growth of 23% from performance and portfolio improvement
2022 INTERIM RESULTS Revenue growth of 23% from performance and portfolio improvement £4.6m portfolio improvement 25.3 1,309.5 62.2 1,284.2 £173.0m performance improvement 42.6 63.6 (38.0) 109.4 £m 1,044.4 HY - 2021 Occupancy Price New Closures Instant* Sub-total HY – 2022 FX HY - 2022 excl. FX impa
Slide 17: Cost growth below revenue growth
2022 INTERIM RESULTS Cost growth below revenue growth 1,500.0 1,400.0 35.3 1,291.0 1,300.0 £(27.3)m volume, inflation & strategic cost increase 90.7 1,255.7 £53.9m property savings 1,191.6 1,200.0 10.6 6.7 10.0 £m (50.1) (3.8) 1,100.0 1,000.0 900.0 800.0 HY - 2021 Closed centre Rent savings Product
Slide 18: Net debt increase reflects Instant Group acquisition
2022 INTERIM RESULTS Net debt increase reflects Instant Group acquisition £47.1m underlying cash flow Non-recurring items Net debt Net debt Net debt 31 Dec 2021 before 30 Jun 2022 non- recurring items * Less non-controlling interests 2022 Interim Results – 09 August 2022 18
Slide 19: Outlook: Absolute focus on execution is delivering
2022 INTERIM RESULTS Outlook Absolute focus on execution is delivering ✓ Clear strategic objectives are delivering results: 1) Strong traction in company-owned performance 2) Significant progress in capital-light growth 3) On track to build the largest digital workspace platform 4) Generating strong
Slide 20: Q&A
2022 INTERIM RESULTS RESULTS Q&A 2022 Interim Results – 08 09 March August2022 2022 20
Slide 21: Appendix
2022 INTERIM RESULTS RESULTS APPENDIX 2022 Interim Results – 08 09 March August2022 2022 21
Slide 22: Cash flow
2022 INTERIM RESULTS Cash flow £m HY 2022* HY 2021* Adjusted EBITDA 122.9 5.4 ✓ Strong recovery in EBITDA Working capital (47.2) (237.9) ✓ Improvement in working capital Growth related partner contributions (18.7) (29.3) Net maintenance capital expenditure (47.4) (45.8) ✓ Well controlled maintenance
Slide 23: Thank you
2022 INTERIM RESULTS Thank you IWGplc.com 2022 Interim Results – 09 August 2022 23
Slide 24: Contact details
2022 INTERIM RESULTS Contact details Wayne Gerry Investor Relations Director wayne.gerry@iwgplc.com Mal Patel Investor Relations Director Mal.patel@iwgplc.com 2022 Interim Results – 09 August 2022 24
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