Awfis Space Solutions Limited · NSE:AWFIS
Awfis Space Solutions — Q1 FY25 Earnings Presentation
36 slides from Awfis Space Solutions's earnings presentation, Aug 13, 2024
Slide 1: Stock exchange cover letter for investor presentation
Date: August 13, 2024 To, To, National Stock Exchange of India Limited BSE Limited (“BSE”) (“NSE”) Listing Department Listing Department Corporate Relationship Department Exchange Plaza, C-1 Block G, Bandra Kurla Phiroze Jeejeebhoy Towers, Complex Bandra [E], Mumbai – 400051 Dalal Street, Fort, Mumb
Slide 2: Investor Presentation Q1FY25 August 2024
1 INVESTOR PRESENTATION | Q1FY25 | AUGUST 2024
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Awfis Space Solutions Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Message from Amit Ramani: Q1 FY25 performance
We are pleased to present the performance metrics for Q1 FY25: • As of June 30, 2024, we have surpassed 100,000 operational seats and 169 operational centers • Achieved Operational + Fit-out + LOI of 127,726 seats, 208 centers and 6.4 Mn sq. ft. • Net addition of 5,368 seats and 9 centers in Q1FY25.
Slide 5: Agenda
Q1FY25 01 Performance 04 Growth Strategy 02 About Us 05 Historical Financials 03 Investment Thesis ▪ Growing 4 Flex Sector ▪ Network Leadership ▪ Innovative Supply Model ▪ Diverse Demand Strategy
Slide 6: Q1FY25 Performance Summary
5 Q1FY25 PERFORMANCE SUMMARY
Slide 7: Awfis: Pioneer in Indian Flexible Workspace Industry
AWFIS : PIONEER IN INDIAN FLEXIBLE WORKSPACE INDUSTRY MARKET LEADER 17 Cities 169 / 100K+ 54 With the Largest Network Including 8 tier Operational Micro Markets 2 cities1 Centres / Seats in India1 ASSET LIGHT SUPPLY 67% 71% / 84% ~34/24 with Strong Demand Strategy months Managed Aggregation Blended
Slide 8: Network Leadership
NETWORK LEADERSHIP INDIA’s LARGEST NETWORK OF FLEXIBLE WORKSPACES AWFIS's presence in Nine Tier 1 and Eight Tier 2 cities facilitates in fulfilling the growing and diverse needs of our clients 17 54 185 Cities Micro-markets Centres 112K+ 5.6Mn sq. ft. Seats Chargeable Area TIER 1 TIER 2 90% 166 cent
Slide 9: Q1FY25 Supply Highlights
Q1FY25 SUPPLY HIGHLIGHTS EXPANDING NETWORK AND A ROBUST PIPELINE • Crossed 1 Lakh operational seats in 1,12,038 Jun’24 127,726 Seats 11,640 2 incl. signed LOI • 48 new centers and 30,156 seats were launched since Jun’23, 81,433 expanding our presence to 8 Tier 2 92,319 Seats cities and 6 new micro-m
Slide 10: Q1FY25 Supply Walkthrough
Q1FY25 SUPPLY WALKTHROUGH 1,27,726 ▪ Net addition of 5,368 seats and 9 1,12,038 15,688 centers since Mar’24 1,00,398 11,640 95,030 ▪ Launched one Gold centre in Kolkata 5,368 ▪ 19% of centers (additions + under fit out) in Tier 2 cities ▪ Established 3 Managed Offices for large government and multin
Slide 11: Continued Momentum on Asset Light, Low Risk MA Model
CONTINUED MOMENTUM ON ASSET LIGHT, LOW RISK MA MODEL 1,12,038 81,433 42% 74,991 Growth (67%) 40% in MA 84 136 52 Growth 118 67 seats (62%) (38%) in MA (64%) 185 (36%) 52,900 centres (65%) 28,533 Jun ‘23 37,047 (35%) (33%) Jun ‘24 Jun’23 Jun ’24 SL MA Total Seats Total Centres ▪ 67% total seats and 6
Slide 12: Strong Demand Metrics
STRONG DEMAND METRICS 2,684 36% ~11K 71% 34 New seats signed* Blended Occupancy Active Clients Multi Center Clients Total Tenure (months) Rising occupancy with maturing centre vintage Increasing total and lock in tenures for large seat cohorts OCCUPANCY TOTAL TENURE LOCK IN TENURE Weighted Average (
Slide 13: Diverse Demand Strategy
DIVERSE DEMAND STRATEGY Catering to all seat 4% cohorts… … and tenure buckets 5% 18% >=24 months 21% 100+ Seats 12-23 months Jun ‘24 51-100 Seats Jun ’24 56% 6-11 months 1-50 Seats 26% <=5 months 70% 28% Creating a customizable solution that serves businesses of all types across industries Diversifi
Slide 14: Segmental Revenue Break Up
SEGMENTAL REVENUE BREAK UP In Rs. Crs. +33% 185 139 Co-working space on rent and allied Q1FY24 Q1FY25 services 3% 2% Q1FY24 Q1FY25 23% 26% +55% 74% 72% 67 43 Construction and Co-working space on rent and allied services fit-out projects Construction and fit-out projects Others Q1FY24 Q1FY25 13
Slide 15: Q1FY25: Financial Highlights
Q1FY25 : FINANCIAL HIGHLIGHTS Q1FY25 vs Q1FY24 (YoY) Revenue from Operating EBITDA / PAT/ PAT Margin Cash EBIT* ROCE^# Operations EBITDA margin Rs. 258 Crs Rs. 79 Crs / 30.7% Rs. 3 Crs / 1.0% Rs. 38 Crs 68% vs 42% in vs Rs. (8) Crs in +37% +56% Q1FY24 +158% Q1FY24^ * Cash EBIT is Operating EBITDA pl
Slide 16: Q1FY25 Financial Summary
Q1FY25 FINANCIAL SUMMARY (Consolidated P&L) Q1FY25 Q1FY24 Profit and Loss Reported Ind-AS 116 Ind-AS 116 Others IND IGAAP Reported Ind-AS 116 Ind-AS 116 Others IND IGAAP ▪ Q1FY25 reported strong Operating (in Rs. Crs) Ind-AS Impact Adj. AS adj.+ Equivalent Ind-AS Impact Adj. AS adj. + Equivalent Rev
Slide 17: About Us
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Slide 18: The Awfis Story
The Awfis Story Awfis is India’s largest and fastest growing end-to-end Workspace Solutions Platform serving shared communities and delivering exceptional experiences Conceived to address a critical gap – the need for accessible, flexible, high- quality workspaces at a fair price – Awfis is at the f
Slide 19: Awfis: Mapping Indian Flex Opportunity
AWFIS: MAPPING INDIAN FLEX OPPORTUNITY GROWING DEMAND SUPPLY STRATEGY A need for offices with better infrastructure and 74%* of workspace supply fragmented across amenities at an affordable rate non-institutional landlords The Challenge: The Challenge: Hassle of tenants to deal Mismatch between with
Slide 20: Awfis Workspace Solutions Platform
AWFIS WORKSPACE SOLUTIONS PLATFORM COWORKING MOBILITY MANAGED OFFICE TRANSFORM CARE Flexible Workspaces Flexible Access Customised Workspaces Design & Build Facility Management Fixed Seats Meeting Room An end-to-end, built-to-suit Commercial fit-out services Seamless operations and Day Pass enterpri
Slide 21: Our Journey So Far
OUR JOURNEY SO FAR Crossed Crossed 100k 110k Total Seats Total Seats 160 180 Centers Centers 25th 100ᵗʰ Center each 5 Mn 5.6 Mn Center in Mumbai & sq. ft. Area Total sq. ft. Area Total launched Bangalore Chargeable Area Chargeable Area 1st Awfis Ashish Kacholia Great Place Great Place Center VBAP Ho
Slide 22: Investment Thesis
INVESTMENT THESIS 21
Slide 23: Core Drivers of Awfis Excellence
CORE DRIVERS OF AWFIS EXCELLENCE GROWING FLEX SECTOR INNOVATIVE SUPPLY MODEL India has emerged as one of the Industry leader in capital efficient fastest growing markets for flexible “Managed Aggregation” model workspaces globally NETWORK LEADERSHIP STRONG DEMAND STRATEGY A leading flexible workspac
Slide 24: Growing Flex Sector
GROWING FLEX SECTOR INDIA AMONGST THE FASTEST GROWING MARKETS # GROWTH OF INDIAN OFFICE STOCK # WITH INDIA FLEX SPACE GROWING FASTER TIER 1 TIER 2 Mn Sqft. Tier 1 CAGR~6.5% 8% 12% 16% Penetration CAGR: 26-27% 998 CAGR: 17% Mn Sqft. 8.5-9 96.2 828 643 61.7 5.7 31.3 1.7 2019 2023 2026E 2019 2023 2026E
Slide 25: Innovative Supply Model
INNOVATIVE SUPPLY MODEL UNIQUE SUPPLY MODEL FOCUSED ON MANAGED AGGREGATION The Company follows 2 models: MA MODEL (Unit Economics) 2.29 EBITDA MANAGED AGGREGATION Margins ATTRIBUTES STRAIGHT LEASE MODEL 0.19 MODEL 0.38 22% Variable Lease Type of Lease Traditional Lease terms apply 1.20 0.52 Large po
Slide 26: Industry Recognition
INDUSTRY RECOGNITION BEST COWORKING MANAGED SPACES MANAGED SPACES COWORKING FLEX SPACES BEST COWORKING Space Of the Year Design Of The Year Design Of The Year Operator Of The Year Best Chain Brand Of The Year South Asia Awards 2023 BEST OFFICE BEST MANAGED COWORKING MANAGED SPACES MOST PREFERRED Des
Slide 27: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM OUR SEASONED LEADERSHIP 01 AMIT RAMANI SUMIT LAKHANI RAVI DUGAR MANU DHIR DEEPAYAN SEN AMIT KUMAR Chairman and Deputy Chief Chief Financial Chief Operating Head - Real Estate CS & Compliance Managing Director Executive Officer Officer Officer and Leasing Officer • ~20 yea
Slide 28: Board of Directors
AND BOARD OF DIRECTORS 01 RAJESH ARJUN BHARTIA ANIL PARASHAR RADHIKA SANJAY SHAH KHARABANDA Non-Executive Independent JAYKRISHNA Independent Non-Executive Director Director Independent Director Director Director • 37 years of • 7 years of • 27 years of • 8 yrs. of experience • Over 18 years of exper
Slide 29: Growth Strategy
GROWTH STRATEGY
Slide 30: Growth Strategy
GROWTH STRATEGY Continue to build an industry Enhance our product and leading capital efficient model Service offerings Grow our portfolio of centers under Increase focus on Awfis Transform, the asset light MA model Awfis Care and allied services Continue to develop mid-size Continue catering to a w
Slide 31: Historical Financials
HISTORICAL FINANCIALS
Slide 32: Robust Financial Metrics
ROBUST FINANCIAL METRICS In Rs. Crs Revenue from Operations Operating EBITDA Cash EBIT* 97 245 +67% 849 +139% 25 156 36 205 53 68 +68% 7 CAGR 1 545 21 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 105 Net Cash Flow From Operations ROCE# 257 619 12 178 49 419 11 5 228 42.8% 162 196 +59% 181 25.3% FY21 FY22
Slide 33: Design Portfolio
DESIGN PORTFOLIO 32
Slide 34: Design Portfolio
DESIGN PORTFOLIO 33
Slide 35: Design Portfolio
DESIGN PORTFOLIO Lilli K<K
Slide 36: Thank You
Company Investor Relations THANK CIN: L74999DL2014PLC274236 CIN: U74140MH2010PTC204285 YOU Mr. Ravi Dugar – Chief Financial Officer Email: ravi.dugar@awfis.com Ms. Ami Parekh / Mr. Pratik Shah E: ami.parekh@sgapl.net / p.s.shah@sgapl.net T: +91 8082466052 / +91 9870030585 www.awfis.com www.sgapl.net
Awfis Space Solutions — Q1 FY25 Earnings Presentation on 6ix