International Workplace Group Plc · LSE:IWG
International Workplace — Investor Presentation (June 2025)
23 slides from International Workplace's investor presentation, June 2025
Slide 1: IFRS to US GAAP Conversion
IFRS to US GAAP Conversion June 2025
Slide 2: Caution statement
IWG: US GAAP Conversion 2 June 2025 Caution statement 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 by This presentation may contain forward-looking stat
Slide 3: Introduction
IWG: US GAAP Conversion 3 June 2025 Introduction • As previously announced, IWG is transitioning to US GAAP from IFRS as it better reflects the financial profile of the business and how the business is run. • US GAAP results are similar to Pre-IFRS16, which is how the business has reported alongsid
Slide 4: Key changes resulting from transition to US GAAP
IWG: US GAAP Conversion 4 June 2025 Key changes resulting from transition to US GAAP Item Explanation Our overall economics Accounting change does not impact the underlying business. No How we run the business US GAAP P&L and Cashflow is similar to pre-IFRS16, which is aligned to how the business ha
Slide 5: US GAAP primary areas of change
IWG: US GAAP Conversion 5 June 2025 US GAAP primary areas of change Impact Areas High level explanation of change Statement of Balance Sheet Cash flow Operations US GAAP: Classified as operating leases, resulting in a ROU asset and lease liability on the balance sheet which unwind through a “straigh
Slide 6: Summary changes to FY24 financials
IWG: US GAAP Conversion 6 June 2025 Summary changes to FY24 financials KPI Change impact IFRS US GAAP Explanation Revenue $3,690m $3,756m US GAAP includes sublease income (specific to the back-to-back transactions within DPS). Statement of Operations Lower lease/rent expense from previously impaired
Slide 7: Summary modelling considerations on FY24 financials
IWG: US GAAP Conversion 7 June 2025 Summary modelling considerations on FY24 financials KPI US GAAP Outlook impact (US GAAP as base for outlook impact) Revenue $3,756m One-off impact of including sublease income (specific to the back-to-back transactions within DPS). Statement of Operations Lower le
Slide 8: Leases | Key IFRS to US GAAP accounting differences
IWG: US GAAP Conversion 8 June 2025 Leases | Key IFRS to US GAAP accounting differences Description IFRS US GAAP Implication Impact Classification of leases as • All leases accounted for as finance leases • All leases recognised as operating leases • Leases accounted for as operating leases operatin
Slide 9: Leases | Impact on P&L relative to cashflow
IWG: US GAAP Conversion 9 June 2025 Leases | Impact on P&L relative to cashflow Example 1 Example 2 Example 3 Assumptions Assumptions Assumptions • 10 Year Lease @ $100 per annum • 10 Year Lease @ $100 per annum • 10 Year Lease @ $100 per annum • 1 year rent free • 1 year rent free • 1 year rent fre
Slide 10: Leases | Impact on the key statements for FY24
IWG: US GAAP Conversion 10 June 2025 Leases | Impact on the key statements for FY24 Statement of Operations IFRS US GAAP Pre-IFRS16 US GAAP All leases classified as operating leases Revenue $$$$$ $$$$$ resulting in single lease expense within cost of sales Cost of sales (excl. lease ($$) Single stra
Slide 11: US GAAP | Statement of operations (P&L)
IWG: US GAAP Conversion 11 June 2025 US GAAP | Statement of operations (P&L) Year Ended December 31, (in millions, except per share amounts) 2024 2023 2022 Revenue $ 3,756 $ 3,764 $ 3,432 Cost of sales exclusive of items shown separately below 2,808 2,879 2,804 Gross profit 948 885 628 Sales and mar
Slide 12: IFRS to US GAAP | Statement of operations (P&L)
IWG: US GAAP Conversion 12 June 2025 IFRS to US GAAP | Statement of operations (P&L) IFRS ($’m) IFRS ($’m) US GAAP US GAAP Adjustments Reported US GAAP After reclasses ($'m) presentation 3. Capex (incl. LL reclasses 4. Acquisitions 5. Income Tax FY24 FY24 1. Leases 2. Intangibles TI) and closure FY2
Slide 13: Alternative Performance Measures | Adjusted EBITDA and Net Debt
IWG: US GAAP Conversion 13 June 2025 Alternative Performance Measures |Adjusted EBITDA and Net Debt Adjusted EBITDA US GAAP ($'m) US GAAP ($'m) US GAAP ($'m) Ref FY2024 FY2023 FY2022 Operating income (loss) 142 (98) (169) [1] Ref Add back: 333 386 369 1 2024 US GAAP consolidated statement of operati
Slide 14: Pre-IFRS16 to US GAAP bridge FY23 Adjusted EBITDA
IWG: US GAAP Conversion 14 June 2025 Pre-IFRS16 to US GAAP bridge FY23 Adjusted EBITDA ($'m) 503 (11) 463 (29) $(40)m Pre-IFRS16 adj. EBITDA Leases Impact Disallowed expense US GAAP adj. EBITDA capitalisation Leases impact comprises a positive impact on adjusted EBITDA due to 1) lower lease / rent C
Slide 15: Pre-IFRS16 to US GAAP bridge FY24 Adjusted EBITDA
IWG: US GAAP Conversion 15 June 2025 Pre-IFRS16 to US GAAP bridge FY24 Adjusted EBITDA ($'m) 557 501 (37) (19) $(56)m Pre-IFRS16 adj. EBITDA Leases impact Disallowed expense US GAAP adj. EBITDA capitalisation Leases impact comprises a positive impact on adjusted EBITDA due to 1) lower lease / rent C
Slide 16: US GAAP | Balance sheet
IWG: US GAAP Conversion 16 June 2025 US GAAP | Balance sheet As of December 31, (in millions, except share and per share amounts) 2024 2023 Assets Current assets: Cash and cash equivalents $ 137 $ 130 Accounts receivable, net 651 628 Prepaid expenses 152 162 Other current assets 391 388 Total curren
Slide 17: US GAAP | Balance sheet
IWG: US GAAP Conversion 17 June 2025 US GAAP | Balance sheet As of December 31, (in millions, except share and per share amounts) 2024 2023 Shareholders’ deficit Common stock; par value $0.0124; 8,000,000,000 shares authorised, 1,057,248,651 issued and outstanding as of December 31, 2024 and 2023, 1
Slide 18: IFRS to US GAAP bridge | Balance sheet – Assets & Liabilities
IWG: US GAAP Conversion 18 June 2025 IFRS to US GAAP bridge | Balance sheet – Assets & Liabilities IFRS ($'m) IFRS ($'m) US GAAP Adjustments US GAAP ($'m) Reported US GAAP After reclasses presentation Opening balance Opening balance 3. Capex (incl. LL FY24 reclasses FY24 adjustments - adjustments –
Slide 19: IFRS to US GAAP bridge | Balance sheet - Equity
IWG: US GAAP Conversion 19 June 2025 IFRS to US GAAP bridge | Balance sheet - Equity IFRS ($'m) IFRS ($'m) US GAAP Adjustments US GAAP ($'m) Reported After reclasses US GAAP presentation Opening balance Opening balance 3. Capex (incl. LL reclasses 4. Acquisitions 5. Taxes and FY24 FY24 adjustments -
Slide 20: US GAAP | Cash flow statement
IWG: US GAAP Conversion 20 June 2025 US GAAP | Cash flow statement Year Ended December 31, (in millions) 2024 2023 2022 Cash Flows from Operating Activities: Net income (loss) $ 18 $ (209) $ (192) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation a
Slide 21: US GAAP | Cash flow statement (cont.)
IWG: US GAAP Conversion 21 June 2025 US GAAP | Cash flow statement (cont.) Year Ended December 31, (in millions) 2024 2023 2022 Cash Flows from Financing Activities: Proceeds from issuance of long-term debt 808 1,237 1,684 Proceeds from issue of Euro bonds 669 - - Payment of debt issuance cost (30)
Slide 22: Pre-IFRS16 to US GAAP bridge | Cash flow
IWG: US GAAP Conversion 22 June 2025 Pre-IFRS16 to US GAAP bridge | Cash flow • Under IFRS (and pre-IFRS16), capex is Pre-IFRS16 ($’m) | US GAAP ($'m) Reported Change recognised on an accrual basis with the FY24 FY24 balance being recognised through working capital when the capex is actually paid. A
Slide 23: Like-for-like guidance under US GAAP
IWG: US GAAP Conversion 23 June 2025 Like-for-like guidance under US GAAP KPI pre-IFRS16 US GAAP Comments Unchanged – remains medium term Medium-term adjusted EBITDA $1bn $1bn target as leases impact reduces Recalibrated like-for-like in line with 2024 2025 adjusted EBITDA $580m-$620m $525m-$565m US
International Workplace Group — Investor Presentation (June 2025) on 6ix