KPIs

Key performance indicators How we did Future ambitions and risks

2016 Post-tax cash return on net investment by year of opening (%)

Overall 2016 return on net investment made up to 31 December 2011 of 25.1%.

13.7%
Total estate

2015 Post-tax cash return on net investment (%): 07 and earlier - 24.2, 08 - 26.8, 09 - 9.8, 10 - 20.4, 11 - 20.3, 12 - 13.3, 13 - 11.2, (8.0) - 14, (9.3) - 15

Delivering profitable growth and strong, sustainable returns is central to creating future shareholder value. IWG is committed to delivering these returns by optimising revenue development and controlling costs. Our post-2011 investments are progressing as expected.

Cash flow per share before net growth capex, dividends and share buybacks

During 2016 we generated 30.8p per share of cash flow before growth capex, dividends and share buybacks

30.8p

2015 Post-tax cash return on net investment (%): 07 and earlier - 24.2, 08 - 26.8, 09 - 9.8, 10 - 20.4, 11 - 20.3, 12 - 13.3, 13 - 11.2, (8.0) - 14, (9.3) - 15

With our network growth leading to revenue growth and our strong focus on operational efficiency and cost control, we believe our business model is well positioned to continue to convert profit strongly into cash.

Total overheads as a % of revenues

Overheads as a % of revenues reduced 300bp to 11.7%

11.7%

Total overheads as a % of revenues (%): 11 - 19.3, 12- 18.5, 13 - 18.5, 14 - 16.7, 15 - 14.7

We will continue to control overheads to deliver further economies of scale, notwithstanding continued and significant investments made in the business to develop the network and our operating platform, processes and people.

Network location growth

231 new locations added, opening in 52 new towns and cities, at a net growth capital investment of £162.3m

2,926
locations

Network location growth:11 - 1,203, 12 - 1,411, 13 - 1,831, 14 - 2,269, 15 - 2,768

We will continue to add breadth and convenience to the network through further measured investment in high-quality assets, across our range of formats, with the potential for attractive returns for shareholders. We are also focused on developing our range of location formats. As of 22 February 2017 we had visibility over approximately £120m of net growth capital expenditure for 2017, representing some 250 locations.