International Workplace Group Plc · LSE:IWG
International Workplace — Investor Day (September 2017)
58 slides from International Workplace's investor day presentation, Sep 20, 2017
Slide 1: International Workplace Group
International Workplace Group International Workplace Group
Slide 2: Strategy
STRATEGY Example TEXT MARK DIXON CEO
Slide 3: The market context: a developing industry offering substantial growth prospects
• Growing customer awareness of workspace-as-a-service sector, driving increasing demand • Numerous customer types emerging - based on size, industry and specifications The market context: • Well-funded new entrants providing localised competition to IWG, but also A developing industry offering subs
Slide 4: IWG as global industry leader: clear advantages from our scale
• Diversification - geographic, regional vs city, customer • Capital deployment – ability to prioritise capital deployment to the highest performing geographies Example TEXT • Capital efficiency - IWG as the preferred industry partner IWG as global industry leader: • Cost advantages - superior centr
Slide 5: The opportunity
The opportunity • Circa $29 trillion1 • Huge industry • Highly fragmented • c. 8m office workers in the UK 2 • c. 30m office workers in US 3 • Ripe for disruption in a digital world 1– Savills Commercial Research 2– Office for National Statistics (ONS) 3– Henry J Kaiser Foundation – State Health Fac
Slide 6: Repackaging the industry
Repackaging the industry A capital light growth company that can distribute cash
Slide 7: Our approach
Grow the business Our approach Cost Operating Leadership Platform
Slide 8: Supporting our customers needs
DIGITAL PHYSICAL SUPPORT Supporting our customers needs V Example TEXT Manila Dallas Barcelona Kuala Lumpur
Slide 9: Digital platform underpins business success
Digital Platform Customer app Example V TEXT Team Member app App world Corporate customer app Broker app D I G I TA L P L AT F O R M U N D E R P I N S B U S I N E S S S U C C E S S
Slide 10: Developing national networks and formats globally
Developing national networks and formats globally CAPITAL MARKETS DAY 2017
Slide 11: Continuous focus on costs
• One business 24/7 • Ongoing process of continued efficiency engineering Continuous focus on costs • • Lower customer Customer app Example TEXT interaction cost Much improved customer service • More procurement benefits expected in 2018 •Corporate Muchcustomer more scalable app
Slide 12: Revenue growth
• Format and brand pick-up • Product innovation Example TEXT • Improved sales structure Revenue Digital Platform growth • Customer app Improved marketing App world • Retention focus • More “drop in” users • Corporate accounts •Corporate Outsourcing customer app
Slide 13: Sales
SALES Example TEXT ISOBEL MCKENNA D I R E C T O R S T R AT E G I C A C C O U N T S
Slide 14: Corporate Customers
Corporate Customers
Slide 15: Case Study 1: Global leader in network solutions
Global leader in network solutions Adding expertise to the planning process to right- size space in line with utilisation • Tasked with reducing global property spend by 5 – 10% per annum • Previous focus on larger sites – no assessment on the collective savings that could Case Study 1 Customer app
Slide 16: Case Study: Major European airline
Case Study 2 Major European airline Roll-out of hub and spoke model to reduce spend and increase efficiency • Major restructure consolidating business support functions – resulting in vacant space across its branch locations worldwide • Customer app Example TEXT Requirement to minimize commercial ri
Slide 17: Case Study: Leading global technology corporation
Case Study 3 Leading global technology corporation Remove unnecessary capex from the balance sheet • Assess the viability of eliminating property capex from the balance sheet Example TEXT • Wanted to introduce a 100% flexible solution – employees able to take advantage of drop-in space & shared faci
Slide 18: Case Study: Online retail leader
Online retail leader Case Study 4 Rapid expansion and new market entry using IWG flexible workspace • Constantly expanding its global footprint at short notice evolving its Example TEXT brand and product mix • An IWG workspace Customer app solution provides cost-effective, risk-free space to support
Slide 19: Corporate Customers
Corporate Customers
Slide 20: Financials
FINANCIALS Example TEXT DOMINIK DE DANIEL CFO & COO
Slide 21: Cashflow
Cashflow * Based on average share price year to date of 288p
Slide 22: Centre Maturity
Centre Maturity Number of Centres in different year groups
Slide 23: Returns Development
Returns Development NCO Year Group * Based on average share price year to date of 288p
Slide 24: Cash Utilisation
Source of funding 2015 2014
Slide 25: Deal types and profile
Deal types and profile * Based on average share price year to date of 288p
Slide 26: IFRS Summary
IFRS 16 SUMMARY Example TEXT DOMINIK DE DANIEL CFO & COO
Slide 27: IFRS16 Leases Background
IFRS16 Leases Background • Effective from 1 January 2019 • The standard removes the concept of operating and finance leases, instead requiring leasing arrangements in general to be recorded on the balance sheet. • This requires a “Right-of-use-asset” and a related “lease liability” to be recognised
Slide 28: IFRS16 Leases: Key differences between IFRS and IAS
IFRS16 Leases Key differences between IFRS 16 and IAS 17 Digital Platform Example TEXT App world Corporate customer app CAPITAL MARKETS DAY 2017
Slide 29: Illustrative example – IFRS versus IAS
Illustrative example – IFRS 16 versus IAS 17 IFRS16 Leases Digital Platform Example TEXT App world Corporate customer app
Slide 30: Implications for IWG plc
Implications for IWG plc IFRS16 Leases Significant impact: • Balance sheet as a result of the right-of-use asset and related finance lease recognised. • Income statement: Example TEXT • Due to the elimination of the historical rental expense and the Digital Platform recognition of a depreciation cha
Slide 31: The opportunity for us
The opportunity for us IFRS16 Leases • IFRS 16 will be an additional catalyst to support strong structural market growth as our WaaS solution will provide an additional benefit, namely optimized balance sheet exposure, as • We provide a service and service agreements aren’t covered under IFRS 16 (no
Slide 32: International Workplace Group
International Workplace Group International Workplace Group
Slide 33: Coffee break
COFFEE BREAK BACK AT 3PM
Slide 34: International Workplace Group
International Workplace Group International Workplace Group
Slide 35: Investing for growth
INVESTING FOR GROWTH Example TEXT MARK DIXON CEO
Slide 36: Investing for growth
INVESTING FOR GROWTH Example TEXT THOMAS SINCLAIR CHIEF INVESTMENT OFFICER
Slide 37: Commitment to growth
IFSR16 Leases Commitment to growth • Structural growth sector • IWG is the largest player in fragmented market Example TEXT • Why do we continue to grow? • Scale advantages • High returns on incremental investment • National networks • IWG is well positioned for growth
Slide 38: Well positioned for growth
Well positioned for growth Planned Disciplined Brands Example Growth TEXT People Partners Portfolios
Slide 39: Growth planning
Growth planning
Slide 40: Growth planning IWG brands
Growth planning IWG brands Signature
Slide 41: Growth planning
Growth planning Martijn Roordink Founder CAPITAL MARKETS DAY 2017
Slide 42: How do the staff members experience their day-to-day work?
How do the staff members experience their day-to-day work? International Workplace Group @ SPACES.
Slide 43: Growth planning
Growth planning Martijn Roordink Founder CAPITAL MARKETS DAY 2017
Slide 44: Growth planning IWG brands
Growth planning IWG brands Signature
Slide 45: Growth planning IWG brands
Growth planning IWG brands Signature
Slide 46: Growth planning
Growth planning Michel Gordin Founder Ariel Ramirez Architect CAPITAL MARKETS DAY 2017
Slide 47: International Workplace Group
International Workplace Group
Slide 48: Growth planning
Growth planning Michel Gordin Founder Ariel Ramirez Architect CAPITAL MARKETS DAY 2017
Slide 49: Partnerships
Partnerships Partnerships • Significant growth opportunity • Strategic decision to partner • Share the economics • Share the risks • Share the returns • Partnership strategy is working • Multiple locations
Slide 50: Anders Solaas
• Listed on Oslo stock exchange • Market Capitalisation: £2bn • 1.3m sqm of space Anders Solaas EVP Letting & Business Development
Slide 51: Daniel Grimm
Daniel Grimm Development Director, Germany
Slide 52: In summary
In summary • Attractive business model • Committed to growth • National Networks • Positioned for growth • Brands • Partners • Portfolios • But we must remain disciplined • Risk-adjusted returns
Slide 53: Summary
SUMMARY Example TEXT MARK DIXON CEO
Slide 54: Our strategy
Our strategy 3300 centres • Revenue Growth • Cost Leader 115 • Multibrand countries Example Customer app • ROI driven growth TEXT 550,000 • National Networks members • Global Network c. 50m sq ft • Strong Cash Generation Corporate customer app
Slide 55: Q&A
Q&A Example TEXT MARK DIXON & DOMINIC DE DANIEL
Slide 56: International Workplace Group
International Workplace Group International Workplace Group
Slide 57: Please join us for drinks and canapes
PLEASE JOIN US FOR DRINKS AND CANAPES IN OUR LASTEST SPACES LOCATION ON FLOOR 11
Slide 58: International Workplace Group
International Workplace Group International Workplace Group
International Workplace Group — Investor Day (September 2017) on 6ix