WeWork Restructuring Presentation Deck
Overview
Over the past few weeks, the Company has developed a preliminary long-range strategic plan (the "Plan").
The Plan incorporates estimated impacts from ongoing portfolio optimization efforts, which are expected to result in significant changes to the
Company's footprint and cost structure.
The Plan was prepared on a bottoms up basis by key market, and reflects the Company's preliminary view of cash EBITDA through 2027 for the
wholly-owned locations.
The Company's joint ventures in LATAM and Japan are excluded from the Plan.
Material assumptions related to portfolio optimization will become more informed during the restructuring process, most notably around:
Magnitude of lease savings, which will determine the go-forward footprint and resulting building margins; and
Ability to retain customers from the exited locations.
Therefore, the Plan will continue to evolve throughout this process.
The Plan is a "steady-state" scenario and assumes:
a) No additional locations are developed during the period. New locations would require additional capital and would only be pursued if accretive
to the business and driven by market demand; and
b) Average Revenue per Member ("ARPM") grows at the same rate as cost inflation.
Management believes that there remains upside potential through other initiatives
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