International Workplace Group Plc · LSE:IWG
International Workplace — Investor Day (2023)
23 slides from International Workplace's investor day presentation, 2023
Slide 1: IWG Investor Day 2023 - Charlie Steel, Chief Financial Officer
IWG Investor Day 2023 Charlie Steel Chief Financial Officer
Slide 2: Highlights
IWG Investor Day 2023 Highlights • • • •
Slide 3: A decade-long track record in delivering strong financial performance
IWG Investor Day 2023 A decade-long track record in delivering strong financial performance Revenue $4,800m $4.200m $3,600m $3,000m $2,400m $1,800m $1,200m $600m £0m 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023e 2024e 2025e Covid impacted years Broker consensus Note – 2023-2025e based
Slide 4: Managed & Franchised
IWG Investor Day 2023 Managed & Franchised H1 2023 ($m) Year-on-Year Growth • System Revenue 181 40% Contribution 25 40% Managed and Franchised - open rooms and RevPAR • 614 600 • • 59 68 H1-22 H1-23 No. No.rooms rooms (avg permonth/k) (avg per month) Revpar Revpar(avg (avgper per month) month/$) No
Slide 5: Company-owned
IWG Investor Day 2023 Company-owned H1 2023 ($M) Year-on-Year Growth • Revenue 1,561 11% Cost (1,229) 7% Contribution 332 29% • Contribution Margin 21% +300bps Company Owned - open rooms & margin • 570 571 465 421 21% 17% H1-22 H1-23 No. No.rooms rooms(avg (avg per month) per month/k) Revpar Revpar
Slide 6: Worka
IWG Investor Day 2023 Worka H1 2023 ($m) Year-on-Year Growth • Revenue 218 32% Cost 122 40% • Contribution 96 23% Contribution margin 44% • $450m 34% 32% $420m 30% $390m 28% $360m 26% $330m 26% 2022 2023e Revenue Margin
Slide 7: Delivering from three sources of cash
IWG Investor Day 2023 Delivering from three sources of cash Pre-IFRS $m Managed and franchised Company owned Worka H1 2023 Year-on-Year H1 2023 Year-on-Year H1 2023 Year-on-Year growth Growth growth Revenue 181 40% 1,561 11% 218 32% Contribution Margin 25 40% 332 29% 96 23% Group Year-on-Year H1 202
Slide 8: We have a laser-like focus on costs
IWG Investor Day 2023 We have a laser-like focus on costs IWG Costs growing below inflation • 118 116 • 114 112 110 • 108 106 104 102 100 2022 2023 • Costs with Inflation Actual (H1-23 Annualized)
Slide 9: Growth capex falls as capital-light accelerates
IWG Investor Day 2023 Growth capex falls as capital-light accelerates $480m • $420m $360m $300m $240m • $180m $120m $60m $0 2017 2018 2019 2020 2021 2022 2023e 2024e 2023 / 24 are based on internal company forecasts
Slide 10: Maintenance capex falls as we gain efficiencies
IWG Investor Day 2023 Maintenance capex falls as we gain efficiencies $175m • $150m $125m $100m $75m $50m $25m $0 2017 2018 2019 2020 2021 2022 2023e 2024e 2023 / 24 are based on internal company forecasts
Slide 11: Consistent delivery of EBITDA which drives cashflow
IWG Investor Day 2023 Consistent delivery of EBITDA which drives cashflow $600m $540m $480m $420m $360m $300m $240m $180m $120m $60m $0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023e 2024e Covid impacted years Broker consensus Note – 2023-2024e based on consensus numbers – see appendix
Slide 12: Net debt falling post The Instant Group acquisition
IWG Investor Day 2023 Net debt falling post The Instant Group acquisition $960m • $840m Additional $396m (£330m) $720m to fund Instant Group $600m acquisition • $480m $360m • $240m $120m $0 2017 2018 2019 2020 2021 2022 2023e 2024e 2025e 2023-2025 = Consensus forecasts
Slide 13: Coupled with EBITDA strength driving an improvement in the balance sheet
IWG Investor Day 2023 Coupled with EBITDA strength driving an improvement in the balance sheet 6.0 • 5.0 • 4.0 ND/ EBITDA 3.0 • 2.0 1.0 0.0 2017 2018 2019 2020 2021 2022 2023e 2024e 2025e 2023-2025 = Consensus forecasts
Slide 14: Drives a resumption of shareholder returns
IWG Investor Day 2023 Drives a resumption of shareholder returns • • •
Slide 15: We are also making the business financials easier to understand
IWG Investor Day 2023 We are also making the business financials easier to understand •
Slide 16: Which drive many models
IWG Investor Day 2023 Which drive many models •
Slide 17: Clear, useful, KPIs
IWG Capital Markets Day 2023 Clear, useful, KPIs • • Capital-light • Company-owned and leased • Worka
Slide 18: ESG is important to both us and our customers
IWG Investor Day 2023 ESG is important to both us and our customers • • • • • • •
Slide 19: Guidance
IWG Investor Day 2023 Guidance 2023: • Medium term: • •
Slide 20: Highlights
IWG Investor Day 2023 Highlights • • • •
Slide 21: Q&A
IWG Investor Day 2023 Q A
Slide 22: Appendix
IWG Investor Day 2023 Appendix
Slide 23: Consensus forecasts
IWG Investor Day 2023 Consensus forecasts Bank Date Rec PO Revenue (£m) EBITDA (£m)1 Net Financial Debt (£m)1 2023 2024 2025 2023 2024 2025 2023 2024 2025 Barclays 7th Nov Neutral 126 3,014 3,082 3,078 393 400 387 614 567 512 HSBC 7th Nov Buy 180 3,034 3,133 3,445 400 458 555 605 502 275 Investec 7t