Hello, welcome to the IWG 2021 Interim Results Call. My name is Josh, and I will be your coordinator for today's event. Please note that this conference is being recorded, and for the duration of the call, your lines will be on listen-only. However, you will have the opportunity to ask questions by pressing star one on your telephone keypad to register your question. If you require assistance at any point, please press star zero and you will be connected to an operator. I will now hand you over to your host, Mark Dixon, to begin today's conference. Thank you. Thank you. Thank you, operator. Welcome everybody to today's webcast of our 2021 interim results. I'm joined on the call today by Glyn Hughes, our chief financial officer. Look, the first half of 2021 has been something of a continuation of the unusual times we've all had to navigate over the past 18 months. A first half really of two very contrasting quarters, with the impact of the pandemic still being felt in our business in Q1. By the end of Q1 and the start of Q2, a very clear inflection point as our business starts to recover with some momentum. From the worst of times, the business is now moving to better times. Throughout that time, we never wavered in our strong belief in the very positive medium and long-term outlook for the business and for our industry, and even more so as we move into a post-pandemic world. This will be a world where work in the future will become a much more flexible and a much more hybrid type of working, and in that environment, we should do very well. Let's look at some of the financial indicators here. Although year-on-year revenues are clearly down, the sequential quarter-on-quarter performance shows a very encouraging trend, with revenues higher in Q2 than Q1. All of this driven by a month-to-month improvement in occupancy since March. With occupancy going up, we're now able to see very clear movements in pricing. This is coming about by us reducing some of the discounts and aids that we gave to our customers during the pandemic period. As they go away, our pricing starts to come back. Very strong performance on new sales going into the forward order book. We've also continued to make excellent progress on our cost reduction program. Excluding costs associated with growth of our new centers, we've reduced costs in this half year compared to the same period in 2020 by approximately GBP 190 million. By the end of the year, we estimate that we will have taken approximately GBP 320 million of costs out of the pre-growth business. We have reported a positive EBITDA on a pre- IFRS 16 basis, this reflects the improvement we've observed in Q2. You can see this in the small chart here on the right of the page. We've also made really good progress in our pursuit of capital-light growth, with net spend at about 40% of last year's level. As I've mentioned on several occasions, this spend is mainly coming about because of the overhang of deals that we had signed up some time back. The real performance of new growth is excellent. The average performance, which you can see here, with 40% of last year's spend, but producing about the same space. We're getting about two times the growth for the same money, and that should improve into the second half. Two very different quarters. To emphasize that again, on this contrast, Q1 was very much the low point of our COVID-impacted performance. By the end of the quarter, we saw that very clear inflection point. As we noted in our June update, the pace of recovery was slower than we have had originally expected as new COVID variants emerged in various parts of the world. In spite of these variants, occupancy has grown and continued to grow, and we can see it growing into the future. With that, service revenue is increasing and, as I've already mentioned, positive momentum also on pricing. That momentum on pricing saw in June, for the first time, the average new selling price exceeding the average embedded price in our forward order book. This was the first time we've seen this in 18 months. Although it takes time to wash through, bearing in mind our average contract length is 11-12 months, it's very much a move in the right direction. As we've talked overall of our expected recovery trend, price is the most lagging indicator, but good performance now. If we can continue to do that during the second half and into next year, it really sets us up very well for 2022. All of these things are still together, giving us cautious optimism for the second half. We've got a very strong base of recovery here. We've got a business that's recovering. We've also got powerful structural tailwinds that are going to help us this year into next year and in the years to come. These tailwinds have been around for some time, but they've clearly strengthened over the past year and a half. The coverage on newspapers, TV programs, and so on. I've personally done three or four TV appearances really per week over the past six months, and that interest is not going away. There's very much a permanent shift in our direction, and you can see it in the unprecedented interest that we can see in our industry. The vast majority of firms out there today are considering new ways of working, and many are doing it. They're doing something about it. How do we know this? The conversations we're having with companies, and I'm going to talk to you a little bit about that in a moment, are becoming more frequent. Inquiries and sales conversion have now reached to pre-2019 levels. Remember, we haven't exited the pandemic yet. Things are quite tough in some parts of the world, but our inquiries and sales are now back to pre-2019 or pre-pandemic levels. We're in a very good position looking forward. Again, this is another reason for our optimism for the rest of the year into 2022 and onwards, as more and more companies look to just convert the way they work and move much more onto a platform, working much more flexible basis, much more spread and remote working basis for many firms will become the norm. In spite of this, it's worth noting that whilst we are seeing a very good recovery, many of our competitors who were not in a great position, let's say, prior to the pandemic, are starting to really feel it. You really needed to be in a strong financial position to make your way through this crisis. Even though we're closer to the end, we hope, than the beginning, there are quite a number of competitors that have run out of capital, and we are working to consolidate them, acquire them, take them over. There's a lot of options out there. We're getting some quite good traction here, which is pleasing. If we just take another look at these drivers and just step back a moment in the end, our business is quite a simple one. You can see here the indicators are all pointing now in the right direction. Occupancy is improving. You can see that very clearly improving month-on-month as we go through the quarter. You can see that inflection point that we've been discussing on many occasions. With the occupancy increasing, you can see that the embedded price starts to flatten out. Price, even when occupancy goes up, can still go down because you're selling price into the future. Now with the price flattening and the embedded price starting to move up on average, this is a very strong sign for us. You can see that our virtual office and membership business continues to grow in a very healthy way as we go through the quarter. Again, this is reflecting a move from more and more firms to a more remote and a more hybrid type of working. This is one of the clearest indicators that you will see in these numbers. That's why we've added them in for you. Strategic objectives. It's been a difficult year, 18 months, but we have continued to progress against our strategic objectives, which were to continue to develop our enterprise development overall strategy, to continue to grow the network. This is critical. We know what companies want is coverage. Coverage wins the day every day. We need to grow the network while reducing our requirement for capital to do so. We need to manage costs very carefully. Again, I think we've done a good job here with more to come. If we just look at these in a little more detail. First, customers. It's enterprise customers and customers overall that are driving the revenues and the company's development. We had questions earlier on in the year, especially as we started to announce more significant deals with enterprises. We were talking about the numbers of members that would be using the network or that were signing up to the network. I've added this slide in to just give a bit more explanation. I'm going to talk a little bit to a few customer studies in a moment. Customers, enterprises are using us for a whole variety of products. Even though we may talk about large numbers of members joining, what they really use us for are these types of product here. Hubs, drop-in, which is day-to-day use, short-term use of meeting rooms, day offices, and collaboration suites. Projects. Projects are going on in spite of the pandemic. Then smaller local headquarters and localized offices. We're seeing a lot of those as companies change the way they set up their companies to support people more locally. Then we're seeing more of a movement now to total space management solutions, where we're starting to run not just offer products in our own space, but we're starting to offer management of corporations' own space using our technology. We've got a number of customers that we're serving now, and we've got quite an interesting order book that's starting to develop here. There's a whole variety of products within these groups that make up our revenue. When companies use us, they're rarely using us for one thing. If you look at one of our biggest clients, they are using us in over 650 of our locations in 27 countries. Thousands of our clients are using the network across multiple centers and multiple countries. There is no single rule, but what we are seeing very definitely are companies that are engaging more. We're winning new accounts. We updated the market on a few of these as we've gone through the year. These accounts, they start small or they can start large, but they take time to develop, and I'll show you that in a moment. In the first half, we added 900 new enterprise clients during that period, and that's a record. We've got just significantly more enterprises joining us. That has been occurring throughout the first half. Also we've been expanding existing relationships. Here's just a few of them. Well over 1,000 of our existing corporate customers significantly increased their purchases from us during the same period. Look, a few customer examples, and as I've explained before, it's quite difficult for us to give you customer names, because customers clearly are reluctant for their office strategies to be revealed. Here's just a few examples, the key thing to pick up from the eight examples that I'm giving you, these are companies that were not using us last year or where we had small implementations that are going to multiple locations quite quickly with significant contract values. These are across all parts of every sector. We've got consulting, we've got services providers, IT infrastructure providers, pharmaceutical. On the next page, again, more technology and then aerospace and defense. You can see here customers expanding number of locations and spend and overall, it's across all sectors. We've got very good movement here. Coming back to the basics, everyone's talking about it, people are inquiring, learning, and our salesforce are converting. It takes time to develop, but now we've got simultaneous development of lots of companies at the same time. This is one of the things that underpins our outlook for the second half continue to develop in spite of a continuing pandemic and into 2022 where we expect to see even more wins and expansions occurring. Demand, we're very happy with. The area under management is also growing strongly. It is important that we understand that we need to meet a growing demand in the market with more network coverage. Even in this first half, a very difficult half for the company, we've continued to grow the space we have under management, adding 84 new centers in the first half. Our gross space now exceeds 64 million sq ft. We believe that in the second half of this year, we should grow the space under management or area under management at about 10%-15% annualized. That's the annualized growth rate. That would be a very strong growth rate in the second half. Underpinning this, we're seeing record levels of franchise and management agreements. These are about as capital light as you can get. We've signed some fabulous franchise agreements since the second half. We'll update you on those in the third quarter results. We've also signed a very exciting MFA joint venture with Hysan to further develop the Hong Kong and the Greater Bay Area. That's the Greater Bay Area, China. Again, go into a bit more detail on that later, but these are very exciting developments that help us get more coverage. As I mentioned earlier, we're also seeing excellent opportunities to take over competitor locations. You can see a few of them here, some fabulous buildings where competitors have pulled out and we've managed to take these over. This is occurring in many countries. We've got a very busy order book in the second half for more of these. You've still got more center openings, again, many of them on either management contracts, joint venture or on a franchise basis. Lots of exciting developments, and we've got things definitely moving in a very attractive direction there. Capital light working? Absolutely. It is quite difficult to read this graph, but that very thin black line on the graph, we should have made it thicker because it's a great indicator. You can see the number of square feet added for the cost, and you can see that sort of hit the very much the green button in the first half with more square feet being added for less investment than we've ever done before. You can see also on the pie chart that well over a third already of the estate is now either franchised or managed. Much lower risk profile, much less impact on IFRS 16, et cetera. We expect that to continue apace during the next 18 months with that pie chart eventually three-quarters of it being off the balance sheet, let's say, and only a quarter on. We're very confident that we can do this. Again, this is a very important slide. The key in this business is to be able to grow the network and make our capital go much further. We are doing this. A key part of this is franchising, and we continue to build up momentum with this strategy. We added some really great franchise partners in the first half. I've spoken to every one of them. We've got some fantastic businessmen and women joining us who pretty much universally have excellent business experience overall and very strong local knowledge of their markets. We're not only signing them up, we're opening some very successful centers with these franchisees who then, of course, after one successful one, they want to get on and do the second, the third and so on. We've got good momentum, both in signing people, getting centers open, supporting them and then opening more with them. This will just gain more and more momentum as we go through this year and into next year. We're doing this in many countries. It's not just one country. I think importantly, we're starting to gain momentum in the U.S. with our first deals done in the U.S. in the first half year. A lot of interest in franchise as well. We're, again, part of this overall interest in the sector is also helping our growth strategy, bringing in more partners who want to work with us. A few words on the JV with Hysan. This is an MFA, where we're retaining a minority stake. This is really a meeting of a specialist in this market, and Hysan have a huge amount of skill and history in the Hong Kong area and the Greater Bay Area of China. They have significant developments. We have been partnering with them for a long time, and this just is formalizing it more. The objective here will be to grow into this area. It's a very high growth. It's got a population of 90 million, and it's really one of the key hubs in China. We're very much looking forward to a more rapid development here with our partner. It also brings us some significant capital for the part of the business that we have sold. It is an MFA in that sense. The key deliverable here will be additional growth in this exciting part of our world market. With that, Glyn, I'll hand over to you. Thank you, Mark. Good morning, everyone. Hopefully, you've had an opportunity to look at our results this morning. Clearly, as expected, year-on-year, the results are down, primarily due to the pandemic. Encouraging, however, as Mark alluded to, is the momentum that we've built in the business during the second quarter. Revenue from open centers in the second quarter was 3.4% higher than quarter one, and in the like-for-like pre-2020s estate, Q2 revenue was 1.5% higher than Q1. All in all, trending in the right direction and largely driven by occupancy improvements, which improved 120 basis points over quarter one. We're also seeing encouraging trends in pricing as lower levels of discounting have been required relative to the prior year. As Mark referenced, in June, we saw the average new sales price exceed the average price embedded in the forward order book for the first time since the onset of the pandemic. We've made good progress in our strategy to reduce costs, achieving year-on-year savings, excluding growth in property and non-property costs of approximately GBP 190 million in the first half relative to the first half last year. EBITDA on the mature estate of almost GBP 64 million was pared back to GBP 5.4 million after the drag from growth and the impact of rationalized centers. Moving to the revenue bridge. This slide shows a revenue bridge for the first half 2020, when the pandemic only kicked in during the second quarter, so providing a tough comparative for this year's interim results. On a constant currency basis, we lost GBP 80 million of revenue due to the impact of lower occupancy and a further GBP 98 million due to pricing and customer support measures. Despite these challenges, we've continued to invest in the business, and these new centers added over GBP 53 million of revenue in the first half. The network rationalization program resulted in a GBP 71.7 million reduction in revenue. After negative impact from currency headwinds, interim revenue for the half reduced from GBP 1.3 billion to just over GBP 1 billion. We've made good progress in taking costs out of the business. Excluding costs associated with new centers, we have visibility of reductions in our annualized cost run rate by approximately GBP 320 million. GBP 190 million was achieved in the first half, and a further GBP 47 million was already recognized in 2020. The remainder is to come. The key components in achieving these savings have been the actions we've taken to close centers that were not profitable, to renegotiate leases, and to instill a more disciplined approach to expenditure in the business, particularly rents. The cost bridge shows the main buckets of the GBP 190 million of savings. We've made good progress in taking costs out of both overheads and center-related costs. GBP 144 million are property-related savings, two-thirds from closures and one-third from rent savings in the pre-2020 estate. A further GBP 46 million from product costs and overhead savings. GBP 68 million of this cost save is offset by the cost associated with new center growth. Finally, we'll take a look at the cash flow bridge. We closed the period with net debt of GBP 414.6 million, having started the period with net debt of slightly in excess of GBP 351 million. As previously disclosed in the first quarter, we had a significant outflow of cash relating to the deferral of prior year rents and other expenditure. These rent-related outflows resulted from the conclusion of successful negotiations with landlords. Expect this to reverse in the coming months given the improvement in performance we're now seeing. We maintained a disciplined approach to network investment, and as previously disclosed, we received GBP 284 million in relation to the return of monies from an aborted acquisition. I'll now hand the call back to Mark to conclude. Thank you, Glyn. We've navigated through extremely difficult market conditions, but we're now seeing encouraging trends in the business, and we can see forward trends in more adoption of flexible working practices and hybrid working practices as giving us a very attractive market future. We can see a very clear inflection point in our business at the end of the first quarter, which has continued. The line has continued to progress right up to today's date. We're seeing unprecedented sales activity as the structural trends we've discussed on many occasions strengthen, and we're seeing lots of good opportunities to grow the business itself by adding new sites, getting far more bang for our pound or our dollar than we've ever seen before. I think most importantly, as Glyn highlighted, we've shown how it is possible to restructure a business in the most difficult of circumstances during the past 18 months. Not only restructure it and reduce costs, but also grow it at the same time. I think we have a much, much more efficient business as we go into the second half and into 2022. We still have our growth machine intact, and we're going to see significant growth as we go through the rest of this year and into next year. I think we're well set up for the future. Clearly, the pace of recovery will be determined by the continuing easing or imposing of restrictions. We do look forward with cautious optimism. Even where we are seeing restrictions added, we're seeing no worse than flat. No worse than flat is good. On average, if some locations are flat, we have many that are progressing strongly, so we get an upward trend in the business. For the time being, we remain very cautiously optimistic in spite of quite an uneven situation. If things move back to normality, then I think we're well set for a more accelerated recovery. For the moment, we remain cautiously optimistic, not optimistic. With that, I thank everybody and hand back to the moderator for any questions. Thank you very much. If you would like to ask a question or make a contribution on today's call, please press star one on your telephone keypads now, please. If you want to withdraw your question, please press star two. Please ensure your line is unmuted locally, and then I will introduce you into the call. So that is star one on your telephone keypads now, please. We do have a few questions in the queue already, and our first question comes from the line of Michael Donnelly from Investec. Michael, please go ahead. Your line is now unmuted. Thank you, and good morning. Three quick ones on Hysan, please. First of all, Mark, in January, you spoke about the two rescue takeovers of WeWork Hong Kong centers. Were all the 32 in today's statements, were they WeWork centers or historical IWG centers, or a mixture of both of them? That's the first question. The second one is, will Hysan own 100% of the growth CapEx from the JV from now on or only half of it? The final question is, can you just remind us how many centers you have in mainland China, not including the 32 in today's statement? Thank you. Thank you, Michael. Look, we subsequently took over a third WeWork center in Hong Kong, and all of those centers are within the Hysan joint venture now. Going forward, we will jointly fund, but we'll follow the same strategy that we're using elsewhere in the world. There'll be more joint venturing, more franchising and so on. In terms of Greater China, there's about 100 more centers that are not in this group. Mark, thank you. you. That's very useful. Rest of mainland China. Thank you. Thank you very much. Our next question comes from the line of Steve Woolf from Numis Securities. Steve, please go ahead. Your line is now unmuted. Morning, all. To follow on to Michael's question on Hysan, you mentioned obviously they're putting money in. Should we be thinking of this in the same way that we did with Switzerland, Taiwan, Japan, in terms of what they might have brought in as a proportion of revenues or percentage of locations? Could you outline sort of the committed growth targets you've got relative to the 32 under management? Are we looking at three, five, 10 a year as opening? Should we think, again, also that the type of deals going forward will be more the likes of a Hysan, or is it other sort of infrastructure funds or deals that you've done already in, say, Japan, Switzerland, with those type of customers? Secondly, in terms of the expansion, you mentioned the run rates of 10%-15% annualized locations by the end of the year. Should we be thinking about adding 300 locations-450 locations gross next year? Is that how I've understood it? Thanks. Okay, that's a lot of questions there, Steve. You're going to make me work here. First of all, the transaction is similar to Switzerland and to Japan in terms of multiples, values, et cetera. The only difference is that we've retained part of the business. We are very happy to do that in this particular market. It's one of the most dynamic markets in the world at the moment. In terms of the growth in that market, I think that was your second part of your question. Yeah. We have a business plan to grow that business, as I've said, we will grow it. We'll do more partnerships, will be the likelihood here. The existing partnership would grow, and we bring in more partners in this market. It's a very well-established real estate market, and there's a lot of interest in new ways of working, and our objective is to capitalize on that here. Remember, it's 90 million people, and this is one of the wealthiest concentrations of money and business development in the world at the moment. It's the engine room of much of China. In terms of other deals, we have a whole variety of discussions that continue to take place from very small to medium size. None of them are the same, Steve. It really depends on a whole range of questions. Who is the partner? What can they bring? Do they want to take all of it? Are we consolidating with other operators in order to do it? There's a whole range of questions. There's not any single rule here. I think what's happened over the past two, three years since we started to follow this program is that we've learned a lot more about the art of the possible. As we talk to more people, we become more creative, and we get more tools in the toolbox in terms of how we can grow the network. In answer to the third part, other deals, yes, there will be more. There is no single rule as to how they will come out. In terms of the growth run rate, that's a very good question. Glyn, I think we need to do a bit more work on that. What I don't want to do is to start to put expectations out there in the market until we're very clear about them. What we can see at the moment is a lot of opportunity, as you would expect. We've got strong movement on the demand side, and we've got strong movement on the supply side. How that ends up looking in 2022 is a question I'd like to do more work on. We're more confident about the second half of 2021. Bear in mind, we're already two months into it, and we've got a lot better visibility of what's going on here. We will look to clarify that in the next few months and give you a better and clearer picture on next year. Really, it's not just about the growth, Steve. It's about the cost of the growth. It's about the effect of that growth on our balance sheet, the drag on profits, et cetera, et cetera, and the IFRS 16 effect. All of those are the questions, really, and it's the return on any capital we do invest, what does that look like? What you will see, and I can say this with confidence, is a much higher percentage of the growth being franchised. The more franchisees we partner with this year, they begin to open centers, and there's more and more visibility from these partners, both in signing them up and in them opening. That I think will be the more franchise partners we have, the more growth we will have in the future, and the business will start to look quite different. The pie chart that I showed you in the slides earlier will move rapidly onto a much more of a franchise business than an operating business. I think that's a key part of our strategy, and it's a key part of releasing value, I think, Steve, in the future. Okay, thanks, Mark. Just to cross-check back on the presentation, it's the run rate 10%-15% annualized by the end of the year. Yeah. Specifically, what's that 10%-15% then referencing? That's the number of square meter, square feet added in the second half. Gotcha. Yeah. Perfect. That's great. Right. 5%-7.5% added in the second half. Thank you, Mark. Annualized, which is the 10%-15%. Yeah. Perfect. Thank you. Thank you very much. Our next question comes from the line of Andy Grobler from Credit Suisse. Andy, please go ahead. Your line is now unmuted. Hi. Good morning. Just see if I could follow up on Steve's question from earlier. I guess, you said you're going to do a bit more work on this, if you can give us a bit of guidance about the potential cost of that growth going forward. If I look back to 2019, I think you opened about 200 centers, there was a cost of GBP 80 million-GBP 85 million at the EBIT level from growth. Is that going to be meaningfully different? Can you kind of give us a framework to think about that as you shift more towards franchising going forward? Secondly, in terms of pricing, you've talked about some of the momentum there. Can you, again, talk a little around the competitive environment and what your competitors are doing from a pricing perspective, i.e., are you seeing different dynamics than much of that competition? I guess added to that, how much of the pricing pressure we've seen in the last couple of years is permanent reduction in pricing and how much of it is temporary? Thank you. First question. Cost of growth, meaningful reduction, Andy. Meaningful reduction. You can see it already in these numbers. If you look at the bridge and the sort of cost of the drag from growth, it's much smaller. The only reason it's there at all is because these were centers that were signed up some time back that happened to open in the second half. There'll be much less in the first half. In the second half, there'll be less. Next year, very few at all. The drag will be meaningfully less. There'll be some, but it'll be meaningfully less next year. You'll have a lot more franchising. Glyn and I will do some work so that we can give a better indication for that. The chart that I put in there where you can see the amount of square feet you're getting per GBP, it will continue to go up, and that's a really key indicator. It's not just the capital, it's the drag, as you quite rightly say, that starts to go away, and your profits are then out in the open. Meaningfully different, and we'll come back with some guidance on this as we get closer to next year. We're set fair for that, even as we speak today. Pricing, that is a very broad question, Andy. Very broad. Overall, look, our pricing's improving. It's not our pricing improving, it's our discounting becoming less. For us, the important Rubicon that we needed to cross was that we're selling our embedded book of business starts to go up, and we're doing that now consistently. That's on the back of strong demand for our network. Again, I refer you back to my slides where you can see companies using us across many countries, many locations, and growing their implementations with us. This is critical in terms of how I'm going to answer your question on pricing. When companies are using us on a meaningful basis, the spot price is less important. They're looking for an average across the network as opposed to one office in one place compared to competition. In terms of where the competition are, there is still heavy discounting in the market, in particular in some of the CBDs where there is an oversupply without any question. We're still in a position in some CBD markets where even though people are coming back, they're not coming back in enough numbers yet to meaningfully fill up the inventory. There is pricing pressure in some of those markets. Even in those markets, we have reduced our discounting levels. We have also, and again, referring back to our slides, very significantly reduced our break-even costs in these CBD markets. This is where we've taken a forward view on rents, and we've reduced down to what we think the market will go to in the future, rather than the sort of somewhat artificial market that people are talking about today. We've taken very cautious view as to what future rents will be and so on. That also helps us, helps us be more competitive, clearly, helps us on the margin, and helps us to make a margin where others don't. The provincial markets, again, we have the strongest network provincially, suburbs, countryside, these markets much less affected by price. There we've got much more pricing strength, if you like, than we do in a few of the CBDs. This is again limited to a few markets. Overall, though, I think the key here, Andy, is it's at times like this where the global network nature of our network really pays off because, going back to my comments, look, we've got very difficult circumstances in a number of countries today because of continuing restrictions. Even in those markets, we're trading flat, which is very pleasing. We've got a lot of markets improving. We've got countries improving. We've got the suburbs and the countryside also improving from a stronger base. It's that sort of variety of outcome that's giving us an average performance improvement that you can see in these numbers. Okay. Thanks, Mark. Can I ask a follow-up? You mentioned about people coming back to cities or towns or whatever. How do you manage it if they used to be on a kind of full-time basis and come back to you and say, we just want to be in the office for three days a week. How do you balance that out? Is that practical or can they not do that? They can do that, and it is practical, and they are doing it. Look, it's a simple thing. It's something called mathematics. It's basically yield management, it's as simple as that. Some days of the week are more attractive than others, but the price that we need, we have to gain on the days that people want to be there. If people want to come in and use an office for three days a week, they effectively are paying for almost a week when they pay for those three days. We don't divide the price up into five or divide it by five and charge that. That would be not possible. In terms of the way the pricing works and the mathematics of this pricing, we've done a lot of work on this, and we will continue to do that. In the end, it's a margin business. Part-time use, some people want that, we have no problem with that, but it's a different pricing mechanism. Okay, brilliant. Thank you. Thank you very much. Our next question comes from the line of Andrew Shepherd-Barron from Peel Hunt. Andrew, please go ahead. Your line is now unmuted. Great. Many thanks, and good morning. By the way, congratulations on all these bridges and the sort of disclosures of embedded price, et cetera, et cetera. Very useful indeed. Thanks. Just one micro question on those, and then a couple of other questions. Firstly, can you just square with me, as I understand it, you've said that occupancy in Q2 is 69, therefore, in Q1 it was 67.8. This is for the pre-2020s. In Q1 you disclosed that as 66.4. What is that? Is there some change in definition or some such? Beyond that, could you just talk a little bit about the timescale of the time when you think you can get conventionals down to 25%? I think you said rapidly in sort of some relation to it. Presumably, that is going to need the U.S. to really fire up and adopt the franchising model. Thirdly, from me, just on the enterprise clients. When you talk about contract value, can you just say, would that be more than one year, i.e., we can't just take that as an annual incremental sales? Related to that, what would be the annual sales value of, say, your biggest client? Thanks. Okay. First of all, that technical question on occupancy. Glyn, I'm presuming that's mature to gross, yeah? Yeah. Well, there's two elements. There's a difference between total business and mature. Mature occupancy is typically 200 basis points higher than the total estate. We've also taken the opportunity, which is contained within the press release, to disclose the effectively square footage or square meter occupancy, alongside the workstation metric that we've used in the past. We provided the comparative data for that. Internally, within the business, we always reference the kind of square meter metric, and that's what's referenced in the trading on the front page of the trading statement. Yeah. Okay. Thank you. Right. That's one. Timescale. Let me just talk to this timescale. The majority of growth going forward will be in capital light, franchising, joint ventures, management agreements, and the like. It's just simply growth rate over a period of, let's say, three years. If the majority of deals are done on that basis, Andrew, you'll have a total growth, let's say, of 50%, possibly more. That in its own right, will reduce down the amount of sort of leasing that we have on the book. If you then add to that continuing MFAs of various types, that in addition, will also drive that number down. It's realistic to be looking at a converted business that you will be meaningfully sort of capital light and risk light, if you like, by in three, four, five years time if we continue to do what we're doing now and what we are seeing in the order book. My expectation would be even on three years, it will be meaningfully different, and it's just strength of numbers. In particular, the franchising, the more partners we get, they start to open. We've had quite a few of the early franchisees have opened their centers and then bought new areas, and they're now opening those. You build up more and more momentum in that area. It's standard franchise practice. That cumulatively will start to make a big difference as we go into the next few years. In terms of contract value, that will be the total contract value from those customers, which could be more than a year, but most of it isn't, Andrew. Most of that would be, I'd say, probably 85% of it would be within a year. Less of it is longer-term. In answer to that question, that's an educated guess. I can't be super specific on that. Just the nature of those contracts would make me feel that that would be the case. Okay, thanks. The biggest one within that, how big would the biggest one be, do you think? The biggest one would be around about, again, GBP 10 million, something like that. Okay. It's about a third of a percent of our revenue type thing. Yeah. Okay, great. Many thanks. Thank you. We do have more questions on the line if you'd like to take them. Of course. Excellent. Our next question comes from the line of Daniel Cowan from HSBC. Please go ahead. Good morning. Can you hear me okay? Yes. Morning. Thanks for the call. I was going to ask about your enterprise clients, please. What's the average stay for an enterprise client versus perhaps a smaller SME client? Is there any noticeable difference in the tenure of these bigger clients? I appreciate this is an evolving situation. Any differences in behavior there, and particularly the duration of the stay? That's the first question. The second one is also on enterprises. I know you've mentioned in the past the costs that you might have had to put into the business to support the growth in enterprise. Can you give us an idea of how much that might be or where you are with adding resources to the enterprise part of the business? My last question is on M&A. I don't know if it's just me, but you were sounding perhaps a little bit more cautious on M&A, or at least the pace of M&A, when you spoke to us back in June, Mark, and you sound a bit more upbeat on that or perhaps as if there's maybe something more imminent now. Has anything changed since June, apart from obviously the passage of time? But is there anything that has changed that's perhaps making things easier for you on that front? Okay. Let me deal with the third one first. This M&A question. Look, we have a significant number of discussions that are going on. Nothing has changed, though, in the last two months. I think, overall, what we're endeavoring to do here is not to overpromise and underdeliver. This is M&A in its broadest sense, Daniel. These are not significant transactions. They are, all of them, interesting. Again, they fulfill our key objective, which is capital light, growth, and coverage. Lots of stuff going on here. Will it move the bar? Yeah. Cumulatively, they could move the bar in second half of this year and into 2022. There aren't significant cash-hungry, big transactions that are sitting in here. There's a lot of takeovers and a lot of consolidation. Dealing with enterprise customers. The reality of enterprise customers is they're extremely sticky because we have the only functioning global network. Once we establish a relationship and we deliver a good quality service to these customers, their stay tends to be unlimited. Although, of course, it's not the same people in the same places all the time. These relationships go on for many, many years. They will continue to go on until there's another valid global competitor that competes with us. Their overall engagement with us is very long-term, and that historically has been the case as well. The times they're contracting for would be slightly longer than the average commitment stay. Coming back to Andrew's question earlier, they would tend to contract for longer. They're bigger companies. Their planning is different to, say, a small company or a startup that would maybe only commit for three months or maybe a month because they're not sure in which way their business is headed. The bigger the company, the longer the commitment in terms of the contracts they may take out with us because their planning process is different. Then finally, on a cost basis, yes, we have invested in support for enterprise customers, support teams, and so on and so forth, but it's not a significant sort of overall investment. It's not something that we'd say w e continue to invest in it, and we continue to increase our investment, but this is really our sort of cost of sale being more efficiently spent with enterprise customers as we go forward. We are working on more marketing campaigns aimed at enterprise customers who are all interested. We want to make sure that at the same time they're interested, they know that we exist and that we can be used. Slightly more investment, I think, in marketing later on in H2 than on the sort of underlying cost of sale, people and investment. Okay. Thank you. Thank you very much. We have no further questions in the queue, so I'll hand you back over to the hosts. Okay. Well, thank you all very much for your questions today. Thank you, Andrew Shepherd-Barron, for those compliments. I'm sure that my colleague Glyn there will be very happy. I thought also they were very helpful, the bridges. Thanks for that positive feedback. Thank you very much for your time today, everyone. As usual Glyn and I, and Wayne will be available for any further questions during the course of the week. Thank you for your time this morning. Thank you all. Thank you very much for joining today's call. You may now disconnect your handsets. Hosts, please stay on the line. Thank you.