Awfis Space Solutions Limited · NSE:AWFIS
Awfis Space Solutions — Q4 FY24 Earnings Presentation
46 slides from Awfis Space Solutions's earnings presentation, Jun 19, 2024
Slide 1: Cover letter to stock exchanges
Date: June 19, 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, Mumbai
Slide 2: Investor Presentation | Q4 FY24 | June 2024
Logo INVESTOR PRESENTATION | Q4 FY24 | JUNE 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
On 30th May, 2024, Awfis Space Solutions made its debut on NSE and BSE. We are proud that within 9 years of operations, we have been able to create the largest flexible co-working company in India and the first one to go public in the Flexible Space industry. We are pleased to report our Q4 FY24 per
Slide 5: About Us / Investment Thesis / Q4 & FY24 Performance
01 About Us 04 Q4 & FY24 Performance 02 Investment Thesis 05 Historical § Growing Flex Sector Financials § Network Leadership § Innovative Supply Model § Diverse Demand Strategy 03 Growth Strategy
Slide 6: About Us
ABOUT US
Slide 7: 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 8: Leading Flexible Workspace Solutions Company
LEADING FLEXIBLE WORKSPACE SOLUTIONS COMPANY #1 17 Cities 181/110K+ 53 MARKET LEADER In India in terms of No Including 8 tier 2 Micro Markets in Total Centers / Seats 1 With the Largest Network of Centers* cities 1 India 1 66% 2,459 ~32/24 months 70% ASSET LIGHT SUPPLY Weighted average total Managed
Slide 9: 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 enterprise worksp
Slide 10: Our Journey So Far
OUR JOURNEY SO FAR Crossed Crossed 100k 110k Total Seats Total Seats 160 180 25th Centers Centers 100ᵗʰ Center each Center in Mumbai & 5 Mn 5.6 Mn launched Bangalore sq. ft. Area Total sq. ft. Area Total Chargeable Chargeable Area Area 1st Awfis Center Ashish Kacholia in Tier 2 City Great Place Grea
Slide 11: Investment Thesis
INVESTMENT THESIS
Slide 12: 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 13: 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% Penetration 8% 12% 16% 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 14: Network Leadership
NETWORK LEADERSHIP RAPID SCALE OF CENTERS AND SEATS NETWORK 127,062 Seats 110,540 incl. signed LOI# § Achieved a CAGR of 54% over the last Seats* (in Nos.) three fiscal years for our seat supply. § Increased our network from 58 centers 3.7X in Mar'21 to 181 centers in Mar'24, a 68,203 significant 3.
Slide 15: India's Largest Network of Flexible Workspaces
NETWORK LEADERSHIP INDIA’s LARGEST NETWORK OF FLEXIBLE WORKSPACES AWFIS's presence in Nine Tier 1 and Eight Tier 2 cities facilitates efficient Note: Figures as on 31st March and feasible expansion into new area 2024 Mumbai Bangalore Pune Chennai Delhi Tier I 27 centers 31 centers 24 centers 16 cent
Slide 16: 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 17: Focus on Asset Light, Low Risk MA Model
INNOVATIVE SUPPLY MODEL FOCUS ON ASSET LIGHT, LOW RISK MA MODEL Lower capex Higher ROCE% 1 § Awfis’ focus on asset light MA model (66% of portfolio) cuts our § ~4x increase in RoCE from 11% in FY21 to 43% in FY24 capex per seat spend by 50% compared to if Awfis adopted a 100% portfolio of Straight L
Slide 18: Impact Case Study
INNOVATIVE SUPPLY MODEL IMPACT CASE STUDY CASE STUDY 1 AGILITY AND SUCCESS IN CAPITALIZING DIVERSE OPPORTUNITIES Building Name: Vasavi MPM Grand Opportunity Identification – Commercial setup in high residential catchment area City: Hyderabad Alternate Asset Usage – Mall development Deal Type: Manage
Slide 19: Diverse Demand Strategy: Large and Diversified Mix of Clients
DIVERSE DEMAND STRATEGY LARGE AND DIVERSIFIED MIX OF CLIENTS… 6% Diversified 7% 2,459 Industry 8% CONSUMERS Clients 48% 9% 10% 12% 36% IT Multi Center Clients IT Financial Services Professional Services Construction & Engineering Consumer & Durables Others* INDUSTRIALS Healthcare & Pharma 34% 1% New
Slide 20: Diverse Demand Strategy: Improving Metrics
DIVERSE DEMAND STRATEGY WITH IMPROVING METRICS... REDUCING TOP 5 CLIENT DEPENDENCY CATERING TO ALL SEAT COHORTS Rising share of Contribution of top 5 clients to rental income from co-working space 100 Seat Cohort 0-50 Seats 50-100 Seats 100+ Seats 26.7% 50% 50% 58% 58% 18.3% 12.7% 13.8% 16% 15% 14%
Slide 21: Consistent Improvement of Occupancy Rate and Tenure
DIVERSE DEMAND STRATEGY CONSISTENT IMPROVEMENT OF OCCUPANCY RATE AND TENURE IMPROVEMENT IN OCCUPANCY WITH INCREASING CENTER VINTAGE 83% 84% 75% 71% 72% 66% 63% 59% OCCUPANCY Mar’ 21 Mar’ 22 Mar’ 23 Mar’24 > 12 months from launch date Overall IMPROVEMENT IN TOTAL TENURE AS WELL AS FOR THE LARGEST SEA
Slide 22: Industry Recognition
INDUSTRY RECOGNITION Q4,FY FY2024 2024 BEST COWORKING MANAGED SPACES MANAGED SPACES COWORKING FLEX SPACES Space Of the Year Design Of The Year Design Of The Year Operator Of The Year Best Chain South Asia Awards 2023 Q4 FY 2024 BEST COWORKING BEST OFFICE BEST MANAGED COWORKING MANAGED SPACES Brand O
Slide 23: Robust Financial Metrics
ROBUST FINANCIAL METRICS Revenue from Operations EBITDA+ Cash EBIT* 271 97 +44% 849 +139% 25 176 91 90 36 205 +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% 196 +59% 162 181 25.3% FY21 FY22 FY23 FY24 In Rs. Cr
Slide 24: 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 25: 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 26: Awfis Key Highlights
AWFIS KEY HIGHLIGHTS - India is amongst the fastest growing market in demand for flexible office spaces with CAGR of 39% from 2019 to 2022, with a Future is FLEX TAM of 474-592 BN. - Estimated penetration of Flex at 15.5% of total CRE absorption by 2026, up from ~8% in 2019 - Platform Approach Strat
Slide 27: Growth Strategy
GROWTH STRATEGY
Slide 28: 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 29: Q4 & FY24 Performance Summary
Q4 & FY24 PERFORMANCE SUMMARY
Slide 30: Q4 & FY24 Operational Highlights
Q4 & FY24 OPERATIONAL HIGHLIGHTS 1,27,062 § 22 new operational centres went live in Q4 FY24, a 2x growth compared to Q3 16,522 FY24 1,10,540 § 15,084 operational seats went live in 15,510 95,030 1 Q4 FY24, a 2.3x growth compared to Q3 FY24 27,490 § Overall, Operational Centres and Seats grew by 35%
Slide 31: New Centers Opened During Q4 FY24
NEW CENTERS S. No Centre Name City Micro-market Lease Type OPENED 1 Brigade Metropolis 2 Bangalore PBD MA 2 Davanam Plaza 2 Bangalore EBD MA DURING Q4 FY24 3 GR Tech Park Bangalore PBD MA 4 Mantri Commerce Bangalore SBD MA 5 Centre Point Chennai SBD MA Center Openings - Q4FY24 6 Prestige Palladium C
Slide 32: Q4 & FY24 Segmental Revenue Break Up
Q4 & FY24 SEGMENTAL REVENUE BREAK UP +47.8% In Rs. Crs. Q4FY23 Q4FY24 619 3% 3% 419 +27.1% 14% 25% Co-working space on rent 168 132 and allied services Q4FY23 Q4FY24 FY23 FY24 72% +95.1% 83% 205 +150.0% 105 FY23 FY24 58 Construction and 23 fit-out projects 4% 3% Q4FY23 Q4FY24 FY23 FY24 19% 24% +16.6
Slide 33: Q4 & FY24 Highlights
Q4 & FY24 HIGHLIGHTS Q4FY24 vs Q4FY23 (Y-o-Y) Revenue from EBITDA/ EBITDA margin+ PBT/ PBT Margin Cash EBIT ROCE^ Operations Rs. 232 Crs Rs. 76 Crs / 31.5% Rs. 1.4 Crs / 0.6% Rs. 30 Crs 53% vs Rs. (14) Crs +45% +43% in Q4FY23 +150% FY24 vs FY23 (Y-o-Y) Revenue from EBITDA/ EBITDA margin+ PBT/ PBT Ma
Slide 34: Q4FY24 Financial Summary
Q4FY24 FINANCIAL SUMMARY Q4FY24 Q4FY23 (Consolidated P&L) Reported Ind-AS 116 Ind-AS 116 Reported Ind-AS 116 Ind-AS 116 Profit and Loss (Rs. Crores) Ind-AS Impact Adjusted Ind-AS Impact Adjusted Revenue from Operations 232 0 232 160 5 155 § Q4FY24 reported strong Operating Revenue of Rs. 232 crores,
Slide 35: FY24 Financial Summary
FY24 FINANCIAL SUMMARY FY24 FY23 (Consolidated P&L) Reported Ind-AS 116 Ind-AS 116 Reported Ind-AS 116 Ind-AS 116 Profit and Loss (Rs. Crores) Ind-AS Impact Adjusted Ind-AS Impact Adjusted Revenue from Operations 849 4 845 545 5 540 § FY24 reported strong Operating Other Income 26 2 24 21 6 14 Reven
Slide 36: Balance Sheet
BALANCE SHEET Assets (Rs. Crores) Mar 24 Mar 23 Liabilities (Rs. Crores) Mar 24 Mar 23 Non Current assets Equity Property, Plant and Equipment 334 247 Equity Share capital 19 30 Capital work-in-progress 8 0 Other Equity 232 139 Other Intangible Asset 2 1 Total Equity 251 169 Intangible assets Under
Slide 37: Cash Flow Statement
CASH FLOW STATEMENT Particulars (Rs. Crores) Mar 24 Mar23 Net Profit Before Tax -18 -47 Adjustments for: Non Cash Items / Other Investment or Financial Items 277 212 Operating profit before working capital changes 260 165 Changes in working capital -10 29 Cash generated from Operations 250 195 Direc
Slide 38: Historical Financials
HISTORICAL FINANCIALS
Slide 39: Historical Profit & Loss Statement
HISTORICAL PROFIT & LOSS STATEMENT Profit and Loss (Rs. Crores) FY24 FY23 FY22 FY21 Revenue from Operations 849 545 257 178 Other Income 26 21 22 38 Total Income 875 566 279 216 CAGR: 59% Total Operating Expenses 603 390 189 125 EBITDA+ 271 176 90 91 CAGR: 44% EBITDA Margin+ 31.0% 31.1% 32.3% 42.0%
Slide 40: Historical Balance Sheet
HISTORICAL BALANCE SHEET Assets (Rs. Crores) Mar 24 Mar 23 Mar 22 Mar 21 Liabilities (Rs. Crores) Mar 24 Mar 23 Mar 22 Mar 21 Non Current assets Equity Property, Plant and Equipment 334 247 121 96 Equity Share capital 19 30 30 30 Capital work-in-progress 8 0 9 0 Other Equity 232 139 65 121 Other Int
Slide 41: Historical Cashflow Statement
HISTORICAL CASHFLOW STATEMENT Particulars (Rs. Crores) Mar 24 Mar 23 Mar 22 Mar 21 Net Profit Before Tax -18 -47 -57 -43 Adjustments for: Non Cash Items / Other Investment or Financial Items 277 212 128 109 Operating profit before working capital changes 260 165 70 66 Changes in working capital -10
Slide 42: Listed on NSE & BSE on 30th May 2024
Awfis Space Solutions Ltd. was listed on the Stock Exchanges (NSE & BSE) on 30th May 2024
Slide 43: Design Portfolio
DESIGN PORTFOLIO
Slide 44: Design Portfolio
DESIGN PORTFOLIO
Slide 45: Design Portfolio
DESIGN PORTFOLIO & + re * 7 = + lal at
Slide 46: Thank You
Company Investor Relations THANK CIN: U74999DL2014PLC274236 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
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