Slide 1: Interim financial results 2023
Interim financial results 2023 8 August 2023
Slide 2: Caution statement
2023 Half Year Results Caution statement No representations or warranties, express This presentation may contain The Company undertakes no obligation or implied are given in, or in respect of, this forward-looking statements that are to revise or update any forward-looking presentation or any furthe
Slide 3: Mark Dixon, Founder & Chief Executive Officer
2023 Half Year Results Mark Dixon Founder & Chief Executive Officer 8 August 2023 3
Slide 4: H1 23: IWG continues to deliver record revenue
2023 Half Year Results H1 23: IWG continues to deliver record revenue Record six-month revenue with 14% growth in system-wide revenue to £1.7bn EBITDA(1) growth of 48% YoY to £198m and cashflow from business activities of £162m (H1 2022 £(4)m) Net Debt continues to fall – reduced by £54m over the la
Slide 5: Delivering strategic objectives with significant opportunities
2023 Half Year Results Delivering strategic objectives with significant opportunities Margin opportunity in core business Margin improvement driven primarily by strong performance on price and service revenue growth Increased coverage through capital light growth Acceleration in capital light… We ha
Slide 6: IWG is the intermediary between investors / landlords and hybrid customers
2023 Half Year Results IWG is the intermediary between investors / landlords and hybrid customers Investors / landlords Hybrid Customers Building owners Hybrid platform Enterprise Real estate investors Global Network Hybrid workers Franchisees Services provider SMEs 8 August 2023 6
Slide 7: Why our customers use us
2023 Half Year Results Why our customers use us Cost Impact Employees Lower costs Reduce carbon footprint Hybrid working model Average cost reduction Hybrid working can reduce carbon 85% of workers expect of 50% emissions by up to 70% (1) hybrid working (2) Total flexibility No balance sheet liabili
Slide 8: Why investors and landlords use us
2023 Half Year Results Why investors and landlords use us Financial Platform Unrivalled scale & network Cashflow Number 1 digital platform Number 1 global sales system Productisation of space Number 1 operational platform 30 years' experience Speed of returns One-stop end-to-end service Address new
Slide 9: Charlie Steel, Chief Financial Officer
2023 Half Year Results Charlie Steel Chief Financial Officer 8 August 2023 9
Slide 10: Delivering the financials
2023 Half Year Results Delivering the financials Revenue Growth 45% • System-wide revenue of £1.7bn, up 14% – a record 6 month result for IWG 40% • EBITDA(1) growth of 48% to £198m driven 35% by pricing and services 30% • Costs increased less than inflation 25% • Signing of 400 capital-light centre
Slide 11: Delivering revenue and cashflow
2023 Half Year Results Delivering revenue H1 Results in IFRS 16 and cashflow Group income statement (£m) H1 2023 H1 2022 Constant currency Actual currency System-wide revenue 1,679 1,448 14% 16% • Record revenue combined with cost discipline Group revenue 1,484 1,287 14% 15% delivers 48% EBITDA(1) g
Slide 12: Revenue growth driven by price strength and services
2023 Half Year Results Revenue growth driven by price strength and services £1,679m Company-owned business +£15m £1,484m +£37m £1,469m +£27m £2m +£6m +£103m +£7m £1,287m H1 2022 Pre-22 price Pre-22 Pre-22 services Net new centre Capital light fee Wo rka H1 2023 pre-FX FX H1 2023 H1 2023 system- incr
Slide 13: Continued EBITDA momentum
2023 Half Year Results Continued EBITDA momentum Company-owned business Growth focus +£27m +£103m +£7m +£15m +£6m £198m +£9m (£19m) (£1m) (£80m) £131m H1 2022 Pre-22 price Pre-22 Pre-22 services Pre-22 centre Net new centre Fee income Wo rka Overheads and FX impact H1 2023 increase occupancy increas
Slide 14: Focus on cashflow to lower net financial debt
2023 Half Year Results Focus on cashflow to lower net financial debt Pre-growth net financial debt (£712m) For growth (£7m) (£14m) (£658m) (£34m) (£53m) (£603m) (£42m) +£204m Net financial debt Cashflow before Maintenance capex Tax & finance cost Net financial debt Net growth capex Acquisitions FX m
Slide 15: ESG underpins business delivery
2023 Half Year Results ESG underpins business delivery Environmental Social Governance • Carbon neutral since • Overhaul of Corporate Social • Revised ESG policies 1 January 2023 Responsibility Study • Increase in disclosures (CDP / • Target net zero by 2040 • Launched ‘International Charity FTSE Ru
Slide 16: Financial outlook
2023 Half Year Results Financial outlook • Reaffirm guidance for the full year • Continue to deliver on strategic objectives, in line with management expectations • Revenue and underlying EBITDA continue to be in-line with management expectations • Continue to expect net debt to fall • Mindful econo
Slide 17: Conclusion
2023 Half Year Results Conclusion • Focus on delivery of revenue growth and cash generation • 48% growth in H1 EBITDA(1) as margins expanded driven by price, services and growth in our capital light business • Helping to drive future growth and cashflows • Our unique footprint leaves us exceptionall
Slide 18: 2023 Half Year Results
2023 Half Year Results 8 August 2023 18