WeWork Restructuring Presentation Deck slide image

WeWork Restructuring Presentation Deck

Wholly-Owned Financial Performance The Plan forecasts pro forma 2024 Cash EBITDA) of $175 million (7.5% margin) growing to $352 million (13.4% margin) by FY2027. $ in millions Net License Fees Access Revenue Ancillary Revenue Other Revenue Total Revenues Cash Rent Expense Tenancy Expense Total Occupancy Costs % of revenue Total Location Specific Opex % of revenue Cash Market Contribution Margin Cash Market Contribution Margin - % Pre-Opening Expenses & Other % of revenue Total Community Support % of revenue Total SG&A % of revenue Cash EBITDA Cash EBITDA-% Memo: Capex Actual Estimate Fest Fest Fest FY2022 FY2023 FY2024 FY2025 FY2026 $ 2,353 $ 2,262 $ 1,916 $ 1,979 $ 2,074 $ 2,166 163 227 214 223 229 233 117 131 136 143 150 111 157 149 76 76 78 80 $ 2,783 $ 2,757 $ 2,336 $ 2,414 $ 2,524 $ 2,629 1,668 363 1,663 392 1,014 270 $ 2,032 $ 2,055 $ 1,284 73.0% 55.0% 74.5% 253 $ 9.1% 147 5.3% 499 $ 503 $ 384 S 396 S 410 $ 424 17.9% 18.2% 16.4% 16.4% 16.2% 16.1% 80 2.9% 537 $ 19.3% $ (511) $ (18.4%) $207 (1) Assumes for modeling purposes that all exits occur January 1, 2024 29 81 435 S 15.8% 199 $ 668 $ 710 S 777 $ 841 7.2% 28.6% 29.4% 30.8% 32.0% (346) $ (12.6%) $110 nm 81 3.5% 1,033 276 $ 1,309 $ 1,337 54.2% 53.0% 175 $ 7.5% $125 nm 1,054 283 83 3.5% 9.4% Am $100 Fest FY2027 86 3.4% 227 S 291 11.5% 412 $ 400 S 400 $ 400 16.6% 17.6% 15.8% 15.2% 1,071 293 $ 1,364 51.9% $100 89 3.4% 352 13.4% $100 * Net License Fee growth (FY 24 - FY'27) of -4.0% per annum., assuming 2.5% ARPM growth and slight membership growth + Access Revenues growing at -4.3% through 2025 and then holding membership flat thereafter Marginal increase in penetration rates from Ancillary revenues • • Calculated at a building level - includes rent savings from renegotiated leases • Calculated either based upon number of remaining locations or as a % of revenues ▪ · Plan assumes no new locations. · Dependent upon individual market participation; currently, the Plan assumes no exits from markets • Target SG&A reductions to steady state of 400 million any individual Capex of approximately $25 million per quarter with additional amounts in 2024 due to deferred capex spend 11
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