Regus Strategy – Progress Report “Getting to 5”

Review 2013 performance Assess planning 2014 View Country Managers View Group Activities Training Networking Housekeeping This Week

Progress ScorecardResult 200 Countries105 Large network of 3 rd place 90 10s of millions of users1.5m Reputation, innovation & design Best support to any business ? Strategy

Business Centres Third Place Membership Home MOS Numbers £1.8bn

Centres Business World Third Place m 6m 3m 1.5m Centres Members Locations © Regus Group Services Ltd Achievement and Challenges

2013 £1.5bn 2014 £2.5bn 2015 £3.5bn 2016 £5bn £275m £3.00 £375m £4.00 £525m £5.50 £750m £8.00 Revenue Operating Profit (Notional at 15%) Share Value multiple post tax & heavily discounted) FTSE 100 FTSE 50 In Money £2.10

We have the rare opportunity to create a special business – a unique enterprise Lots of other companies have achieved this

Planning Get the structure right Lack of sense of urgency Marketing Changing workplace trends Priorities

Vision – to lead the flexible workplace revolution Customer must be at the centre of everything we do We really do help our customers businesses be more successful Values – dynamic, exceptional, friendly, trusted Super fast issue resolution Remain commercial at all times Vision and Values

440 centres Building owner financed Franchise Highlands and Islands Better M&A – more targeted Better design and rollout Carried on did not move forward Property and Growth - Scorecard Score 2/10

Earnings growth – fulfill potential Grow faster/grow lighter – Field structure working/upgraded 30/50/20 Reshape overhead Think Bigger 5 Big Things

Increase focus & rate of Net absorption 25-40p EPS from ‘New Mature’ Finish Enterprise & Initiatives Third Place contributing Communicate message Earnings Growth

Faster 1000 Centres 1000 Third Place Lighter70% Partner Finance Highlands and Islands and Franchising Grow

Business plans key Business reviews MANDATORY EVERY LEVEL Uncompromising approach to country manager and AD quality / training / replacement Uncompromising approach to S&M, Network Development and COO/Finance to create full teams Basics always done NCO performance - basic Field Structure

30/50/20 Rule 30% Run Business Business plan Business review Key Hires Maximise performance Manage overhead 50% Grow Business Obligation to complete national roll out Minimum time Minimum cost Maximum cash / R0I 20% Build the Brand All companies Complete understanding (Marketing) execution

Minimise mezzanine / Group Maximise country senior teams 1-3 highest quality Minimise other overhead Minimise central admin (Manila) Maximise marketing spend Maximise R&D deliverables / ROI Reshape Overhead

Only think big Complete big strategies Co-work Multi brand MOS Ensure new strategies are ‘big ones’ No small partnerships Big money – big benefits Monetise our market leader position Think Big

Earnings growth – fulfil potential Grow faster/grow lighter – Field structure working/upgraded 30/50/20 Reshape overhead Think Bigger 5 Big Things

And ….. The customer must come first