Slide 1: 2019 Interim Results
2019 INTERIM RESULTS 6 August 2019 2019 Interim Results – 6 August 2019 1
Slide 2: Caution statement
Caution statement No representations or warranties, express or implied are given in, or in respect nature, they are subject to known and unknown risks and uncertainties and can of, this presentation or any further information supplied. In no circumstances, to be affected by other factors that could
Slide 3: Agenda
Agenda 1 Highlights Mark Dixon 2 Financial review Eric Hageman 3 Outlook Mark Dixon 4 Q&A Mark Dixon & Eric Hageman 5 2019 Interim Results – 6 August 2019 3
Slide 4: Interim highlights
Interim highlights ▪ Strong operating momentum ▪ Excellent momentum in franchising strategy - Japan master franchise agreement - Franchises commenced in numerous other territories ▪ Continued significant capital investment in network and infrastructure - Strong returns anticipated ▪ Good progress on
Slide 5: Key financial highlights
Key financial highlights Strong trends across the board ▪ Open centre revenue up 15.1%* to £1,275.0m ▪ Pre-2018 EBITDA up 22%* to £229.7m ▪ Group EBITDA of £189.8m ▪ Record profit after tax of £294.9m** ▪ Record cash generation of £385.1m*** - Interim dividend increased 10.3% - £100m share repurchas
Slide 6: Excellent momentum in franchising strategy
Excellent momentum in franchising strategy Significant growth opportunity for us and ambitious master franchise partners Franchise business Franchise agreements To date ▪ No. franchise partners 24 ▪ No. countries 18 ▪ No. locations 300+ H1 2019 ▪ Sale of Japanese operations to TKP ▪ Added 6 franchis
Slide 7: Strong company owned growth
Strong company owned growth Strong network development ▪ 3.0m sq. ft. opened ▪ 114 new locations added, all organic ▪ Net growth capital investment of £185.5m ▪ Now in 3,334 locations worldwide, 58.8m sq. ft. of space USA UK ▪ Strong returns anticipated Chrysler Building, New York The Foundry, Londo
Slide 8: Continued Spaces growth, strong pipeline
Continued Spaces growth, strong pipeline ▪ 5 year+ track record ▪ Strong performance ▪ Record 1.8m sq. ft. of co-working and creative workspace added in H1 2019, to total 8.8m sq. ft. ▪ 45 new openings in H1 2019: 227 total locations ▪ Very healthy pipeline of openings across all continents SPACES k
Slide 9: Enterprise account case studies
Enterprise account case studies Strong momentum LOGO LOGO LOGO LOGO Global partnership to provide a new Improved work environment to Creation of customised work Global partnership to transition to customised solution in Kuala improve collaboration and environment for creative team. flexible space. L
Slide 10: Platform improvements to support network
Platform improvements to support network Continued significant investment into platform and increased digitisation Operating Platform ▪ Support for franchise partners ▪ Cloud migration ▪ Big data platform Centre Technology ▪ Smart building technology ▪ Automated network configuration ▪ Industry lead
Slide 11: Agenda
Agenda 1 Highlights Mark Dixon 2 Financial review Eric Hageman 3 Outlook Mark Dixon 4 Q&A Mark Dixon & Eric Hageman 2019 Interim Results – 6 August 2019 11
Slide 12: Group results
Group results Record profits, strong and improving growth trend % % ▪ Revenue up 10.3% at constant currency to £1,302.4m £m H1 19* H1 18 Constant Actual ▪ Open centre revenue up 15.1% at constant currency to Revenue 1,302.4 1,159.3 10.3% 12.3% £1,275.0m Open centre revenue 1,275.0 1,086.7 15.1% 17.3
Slide 13: Group cash flow
Group cash flow Record cash generation and strong balance sheet % ▪ Record cash flow before net growth capital £m H1 19* H1 18 expenditure of £385.1m Actual EBITDA 189.8 170.9 11% - Positively impacted by: • EBITDA growth Working capital 80.2 49.6 62% • Increase in working capital inflow Growth rela
Slide 14: Shareholder returns
Shareholder returns Increasing returns to shareholders £m shareholder returns Dividends per share +68.5% +79% +58% 100.0 4.35 3.95 3.55 £m p 3.10 51.1 40.2 +8.4% 2.75 +10.3% 36.4 35.5 17.2 58.2 2.15 48.5 53.7 1.95 38.8 43.3 1.55 1.75 35.4 1.25 1.40 2014 2015 2016 2017 2018 2019E 2014 2015 2016 2017
Slide 15: Agenda
Agenda 1 Highlights Mark Dixon 2 Financial review Eric Hageman 3 Outlook Mark Dixon 4 Q&A Mark Dixon & Eric Hageman 5 2019 Interim Results – 6 August 2019 15
Slide 16: Outlook for 2019
Outlook for 2019 Current trading providing a strong outlook for 2019 ▪ On track to meet our full year expectations ▪ Trading continues with good momentum ▪ Sales activity trends remain excellent ▪ Benefit of network rationalisation programme coming through ▪ Strong focus on margin improvement ▪ Comm
Slide 17: Market opportunity
Market opportunity Global commercial real estate market $29TRN Source: Savills Commercial Research 2019 Interim Results – 6 August 2019 17
Slide 18: Strategy to address market opportunity
Strategy to address market opportunity IWG Platform 2019 Interim Results – 6 August 2019 18
Slide 19: Agenda
Agenda 1 Highlights Mark Dixon 2 Financial review Eric Hageman 3 Outlook Mark Dixon 4 Q&A Mark Dixon & Eric Hageman 2019 Interim Results – 6 August 2019 19
Slide 20: Q&A?
Q&A? 2019 Interim Results – 6 August 2019 20
Slide 21: Thank you
Thank you iwgplc.com 2019 Interim Results – 6 August 2019 21
Slide 22: Contact details
Contact details Wayne Gerry ▪ Group Investor Relations Director ▪ wayne.gerry@iwgplc.com 2019 Interim Results – 6 August 2019 22