1. Flexible workspace specialists The Instant Group © Copyright 2016 SHIFTING SANDS: The rise of flexible workspace

2. 1.The new market 2.The new product 3.The new consumer What I’m going to cover

3. The new market 1

4. What is the flexible market made up of? Serviced offices Grey / Surplus space Managed workspaces Incubators & accelerators Co-working environments Business continuity space

5. SIGNS OF A GROWING market RAPID MARKET SHARE CASH IN NOT OUT EVOLVING CUSTOMER NEEDS NEW ENTRANTS INNOVATION / BRAND vs CHANNEL

6. Global Market size C €20 b n 21% compound growth over the last 5 years No. of dedicated Serviced offices 8,20 0 No. of dedicated co-workspaces 7,80 0 The global numbers 21% EMEA 4% Latin America 15% Apac 29% UK 31% Usa & Canada 3 Largest operator s Regus / servcorp/ premier 32%

7. 3 Largest operator s Regus / Sirius facilities / ecos office 26% Germany by numbers 9% In 2015 The flexible market Grew by + No. of centres in the German flexible market 536 €43 7 average monthly workstation rate (per pers. Per desk) 8.5% yoy -

8. 3 Largest operator s Regus / buro club / multiburo 23% France by numbers 8% In 2015 The flexible market Grew by + No. of centres in the french flexible market 567 €66 5 average monthly workstation rate (per pers. Per desk) 1% yoy -

9. 3 Largest operator s Regus / bizspace / w s group 14% uk by numbers 11% In 2015 The flexible market Grew by + No. of centres in the uk flexible market 2,939 €49 8 average monthly workstation rate (per pers. Per desk) 4% yoy +

10. Cities by numbers CityTotal Centres % increase y-o- y Paris 13411% Berlin 11316% London 94416%

11. WHAT & WHO IS THE MARKET?

12. The new PRODUCT 2

16. Who are wework? “We happen to need buildings like Uber happens to need cars, like Airbnb happens to need apartments,” says Neumann. WeWork isn’t shared office space at all. It’s a “platform for creators”. “Some people are there for the fun – they focus on showing off as opposed to showing up.”

17. WEWORK PROJECTIONS FOR 2018? WeWork Members: 260,000 WeWork Locations: 376 WeLive Members: 34,000 WeLive Locations: 69 By 2018, the company predicts operating profit of €8.5 billion on revenue of €25.8 billion.

18. ~ Age ~ ~ Number of cities ~ ~ Number of centres ~ ~ Market valuation ~ The ‘dyson’ effect vsvs 6 years 27 100 €14.5 bn 30 years 900 3000 €3.6 bn

19. The new customer 3

20. WHO IS THE CUSTOMER LONDON, BERLIN, AND PARIS RANK 6, 9, AND 11 RESPECTIVELY IN COMPASS’ GLOBAL START-UP ECOSYSTEM RANKING. “There is a move from the traditional main driver of take up, the public sector, to IT and tech, which is driving rents. It has a young international employee base and a lower cost of living, which is driving the city forward.” PwC – European Re 2016 A survey of the 200 largest companies found that temporary workers represented, on average, 22% of their workforce, and that percentage is growing.

21. What are people looking for? global usus Germa ny ukuk Franc e

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