International Workplace Group Plc · LSE:IWG

International Workplace — Investor Day (December 2023)

20 slides from International Workplace's investor day presentation, Dec 5, 2023

  1. Slide 1: Charlie Steel, Chief Financial Officer

    IWG Investor Day 2023 Charlie Steel Chief Financial Officer

  2. Slide 2: Highlights

    IWG Investor Day 2023 Highlights • • • •

  3. 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

  4. 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

  5. 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 permonth/k) (avg per month) Revpar Revpar

  6. 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

  7. 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

  8. 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)

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. Slide 14: Drives a resumption of shareholder returns

    IWG Investor Day 2023 Drives a resumption of shareholder returns • • •

  15. 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 •

  16. Slide 16: Which drive many models

    IWG Investor Day 2023 Which drive many models •

  17. Slide 17: Clear, useful, KPIs

    IWG Capital Markets Day 2023 Clear, useful, KPIs • • Capital-light • Company-owned and leased • Worka

  18. Slide 18: ESG is important to both us and our customers

    IWG Investor Day 2023 ESG is important to both us and our customers • • • • • • •

  19. Slide 19: Guidance

    IWG Investor Day 2023 Guidance 2023: • Medium term: • •

  20. Slide 20: Highlights

    IWG Investor Day 2023 Highlights • • • •

International Workplace Group — Investor Day (December 2023) on 6ix