Awfis Space Solutions Limited · NSE:AWFIS
Awfis Space Solutions — Q2 & H1 FY25 Earnings Presentation
44 slides from Awfis Space Solutions's earnings presentation, Nov 11, 2024
Slide 1: Exchange filing cover letter for investor presentation
Date: November 11, 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, Mu
Slide 2: Investor Presentation Q2 & H1 FY25 November 2024
1 INVESTOR PRESENTATION | Q2 & H1 FY25 | NOVEMBER 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: Chairman and Managing Director commentary on results
Commenting on the results, Mr. Amit Ramani, Chairman and Managing Director, Awfis Space Solutions Limited, said: "We are pleased to report a robust revenue growth of 40% in Q2 FY25 over the previous year, reaching Rs. 292 crores. This growth was primarily driven by contributions from newly added sea
Slide 5: Agenda
Q2 & H1 FY25 01 Performance 05 Growth Strategy 02 New Business Update 06 Historical Financials 03 About Us 4 04 Investment Thesis ▪ Growing Flex Sector ▪ Network Leadership ▪ Innovative Supply Model ▪ Diverse Demand Strategy
Slide 6: Q2 & H1 FY25 Performance Summary
5 Q2 & H1 FY25 PERFORMANCE SUMMARY
Slide 7: Awfis: Pioneer in Indian Flexible Workspace Industry
AWFIS : PIONEER IN INDIAN FLEXIBLE WORKSPACE INDUSTRY MARKET LEADER 18 Cities 180 / 110K+ 58/100+ With the Largest Network Including 2 tier Operational Micro-Markets 2 cities Centres / Seats1 /Localities in India ASSET LIGHT SUPPLY 67% 73% / 84% ~33/24 with Strong Demand Strategy months Managed Aggr
Slide 8: Network Leadership: India's Largest Network of Flexible Workspaces
NETWORK LEADERSHIP INDIA’s LARGEST NETWORK OF FLEXIBLE WORKSPACES Awfis's presence in Nine Tier 1 and Nine Tier 2 cities facilitates in fulfilling the growing and diverse needs of our clients 18 58 205 Cities Micro-markets Centres 130K+ 6.6Mn sq. ft. Seats Chargeable Area TIER 1 TIER 2 90% 185 cente
Slide 9: New City Expansion
NEW CITY EXPANSION GUWAHATI Launched a centre for a Global Leader in Technology Services & Consulting. Soon also launching a 2nd centre. Nexia Park, Guwahati
Slide 10: Supply Highlights – September 2024
SUPPLY HIGHLIGHTS – SEPTEMBER 2024 EXPANDING NETWORK AND A ROBUST PIPELINE 1,50,649 Seats 1,30,786 incl. signed LOI2 • Crossed 1.1 Lakh operational seats in Sept’24 20,608 • 52 new centers and 35,651 new seats were launched since Sept’23, 92,776 expanding our presence to 9 Tier 2 cities and 7 new mi
Slide 11: H1FY25 Supply Walkthrough
H1FY25 SUPPLY WALKTHROUGH 150,649 • On track to achieve 135K operational 19,863 seats by Mar'25: 130,786 o Added 15,148 seats and 20 centers 20,608 110,178 since Mar’24 95,030 15,148 o 9,780 seats and 11 centers added since Jun’24 o Robust pipeline with signed LOIs at 19 centers, with ~20K seats and
Slide 12: Continued Momentum on Asset Light, Low Risk MA Model
CONTINUED MOMENTUM ON ASSET LIGHT, LOW RISK MA MODEL 1,30,786 92,776 39% 87,853 Growth in MA (67%) 74 63,021 54 seats (36%) 35% (36%) (68%) Growth 151 in MA 205 97 centres (64%) 131 (64%) 29,754 42,933 (32%) (33%) Sept‘23 Sept‘24 Sept’23 Sept’24 SL MA Total Seats Total Centres ▪ 67% total seats and
Slide 13: Strong Demand Metrics
STRONG DEMAND METRICS 2,877 39% ~25K 73% Active Clients Multi Center Clients New seats signed* Blended Occupancy 33 Weighted Average Total (H1FY25) Tenure (months) Rising occupancy with maturing centre vintage Increasing total and lock in tenures for large seat cohorts OCCUPANCY TOTAL TENURE LOCK IN
Slide 14: Diverse Demand Strategy
DIVERSE DEMAND STRATEGY Catering to all seat 5% cohorts… … and tenure buckets 5% 17% >=24 months 21% 100+ Seats 12-23 months Sept’24 51-100 Seats Sept’24 57% 6-11 months 1-50 Seats 26% <=5 months 69% 28% Creating a customizable solution that serves businesses of all types across industries Diversifi
Slide 15: New Business Update
14 NEW BUSINESS UPDATE
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Slide 17: Elite is an uber premium workspace offering
Elite is an uber premium workspace offering by Awfis that elevates luxury in the flexible workspace industry, seamlessly blending elegance, and functionality to create a refined and sophisticated work experience. Rooted in the philosophy of sustainability and well-being, Elite fosters an environment
Slide 18: Amenity-Rich Workspaces
AMENITY-RICH WORKSPACES Featuring: Executive Suites Biophilic Pods Meeting, Podcast & Focus Rooms Wellness Space An array of world class amenities Elite Members will have exclusive access to the Elite Clubhouse, gourmet cuisine at the Cafe, Concierge Service and Curated Experiences. Elite will also
Slide 19: Expanding with Prestige
EXPANDING WITH PRESTIGE Mumbai: Prestige 101 Current Supply: 16 centers & 608K sq. ft. Delhi NCR: Prestige Aerocity New Added Supply: 3 centers & 205K sq. ft. Bangalore : Prestige Tech Park, Venus
Slide 20: Construction & Fit-out Projects Update
CONSTRUCTION & FIT-OUT PROJECTS UPDATE Secured deals with a total value of ~ ₹ 175 Cr in H1FY25 across Awfis Landlords, third-party clients in IT/ITES, BFSI and Telecom sectors and for establishing Global Capability Centers (GCCs)
Slide 21: Segmental Revenue Break Up
SEGMENTAL REVENUE BREAK UP Q2FY24 Q2FY25 In Rs. Crs. +38% 403 3% 2% 24% 23% 291 +43% Co-working space on rent and allied 218 services 153 73% 75% Q2FY24 Q2FY25 H1FY24 H1FY25 H1FY24 H1FY25 +45% 3% 2% 135 24% 25% +36% 93 68 Construction and 50 74% 73% fit-out projects Co-working space on rent and alli
Slide 22: Q2 & H1 FY25: Financial Highlights
Q2 & H1 FY25 : FINANCIAL HIGHLIGHTS Q2FY25 vs Q2FY24 (YoY) Revenue from Operating EBITDA / PAT/ PAT Margin Cash EBIT* ROCE^# Operations EBITDA margin (excl. Exceptional Items) Rs. 292 Crs Rs. 100 Crs / 34.3% Rs. 14.7 Crs / 5.0% Rs. 52 Crs 84% vs 65% in vs Rs. (4) Crs in +40% +67% Q2FY24 +115% Q2FY24
Slide 23: H1FY25 Financial Summary
H1FY25 FINANCIAL SUMMARY (Consolidated P&L) H1FY25 H1FY24 ▪ H1FY25 reported strong Operating Revenue of Rs. 550 Crs, growth of 39% YoY Reported Ind-AS 116 Ind-AS 116 Others IND IGAAP Reported Ind-AS 116 Ind-AS 116 Others IND IGAAP Profit and Loss (in Rs. Crs) Ind-AS Impact Adj. AS adj.+ Equivalent I
Slide 24: Q2FY25 Financial Summary
Q2FY25 FINANCIAL SUMMARY (Consolidated P&L) Q2FY25 Q2FY24 ▪ Q2FY25 reported strong Operating Reported Ind-AS 116 Ind-AS 116 Others IND IGAAP Reported Ind-AS 116 Ind-AS 116 Others IND IGAAP Revenue of Rs. 292 Crs, growth of 40% YoY Profit and Loss (in Rs. Crs) Ind-AS Impact Adj. AS adj.+ Equivalent I
Slide 25: Balance Sheet
BALANCE SHEET (Consolidated) Assets (in Rs. Crs) Sept 24 Mar 24 Liabilities (in Rs. Crs) Sept 24 Mar 24 Non Current assets Equity Property, Plant and Equipment 392 334 Equity Share capital 70 19 Capital work-in-progress 18 8 Other Equity 354 232 Other Intangible Asset 2 2 Total Equity 424 251 Intang
Slide 26: Cash Flow Statement
CASH FLOW STATEMENT (Consolidated) Particulars (in Rs. Crs) H1FY25 H1FY24 Net Profit Before Tax 41 -13 Adjustments for: Non Cash Items / Other Investment or Financial Items 124 132 Operating profit before working capital changes 165 120 Changes in working capital 29 -3 Cash generated from Operations
Slide 27: About Us
26 ABOUT US
Slide 28: The Awfis Story
The Awfis Story Awfis is India’s largest and fastest growing end-to-end Workspace Solutions Platform serving shared communities and delivering exceptional experiences. Conceived to address a critical gap – the need for accessible, flexible, high-quality workspaces at a fair price – Awfis is at the f
Slide 29: 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 30: Our Journey So Far
OUR JOURNEY SO FAR Crossed Crossed 100k 130k Total Seats Total Seats 160 205 Centers Centers 25th 100ᵗʰ Center each 5 Mn 6.6 Mn Center in Mumbai & sq. ft. Area Total sq. ft. Area Total launched Bangalore Chargeable Area Chargeable Area 1st Awfis Launched first centre in Guwahati Center in Tier 2 Cit
Slide 31: Investment Thesis
INVESTMENT THESIS 30
Slide 32: 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 33: 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% 8% 12% 16% Penetration 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 34: 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 35: 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 36: And 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 37: Growth Strategy
GROWTH STRATEGY
Slide 38: 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 39: Historical Financials
HISTORICAL FINANCIALS
Slide 40: Robust Financial Metrics
ROBUST FINANCIAL METRICS In Rs. Crs Revenue from Operations Operating EBITDA Cash EBIT* 97 245 +67% 849 +139% 25 156 36 205 53 68 +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% 162 196 +59% 181 25.3% FY21 FY22
Slide 41: Design Portfolio
DESIGN PORTFOLIO 40
Slide 42: Design Portfolio
DESIGN PORTFOLIO 41
Slide 43: Design Portfolio
DESIGN PORTFOLIO 42
Slide 44: Thank You
Company Investor Relations THANK CIN: L74999DL2014PLC274236 CIN: U74140MH2010PTC204285 YOU cs.corp@awfis.com Ms. Ami Parekh / Mr. Pratik Shah E: ami.parekh@sgapl.net / p.s.shah@sgapl.net www.awfis.com T: +91 8082466052 / +91 9870030585 www.sgapl.net
Awfis Space Solutions — Q2 & H1 FY25 Earnings Presentation on 6ix