tm
changing the way 
the world works
regus plc annual report 
and accounts 2014
regus plc annual report and accounts 2014 regus at a glance
regus is the clear number one player in the rapidly growing global flexible 
workplace market we have a worldclass business with sound financial 
discipline focused on driving attractive shareholder returns
we do this by providing convenient highquality workplaces for any period of 
time  we are the only provider with significant and growing national networks 
these provide an unrivalled global reach
regus the global workplace provider 
strategic report
1 performance highlights
2 our business
4 our market
6 our customers
8 our business model
10 chairman’s statement
11 chief executive officer’s review
14 strategy and kpis
16 chief financial officer’s review
20 risk management and principal risks
24 corporate responsibility
governance
26 board of directors
29 corporate governance
35 audit committee report
38 remuneration report
46 directors’ report
48 directors’ statements
financial statements
49 auditors’ report
50 consolidated income statement
51 consolidated statement of 
comprehensive income
52 consolidated statement of 
changes in equity
53 consolidated balance sheet
54 consolidated statement of cash flows
55 notes to the accounts
90 parent company accounts
92 segmental analysis
95 five year summary
96 shareholder information
our business
we are a fast expanding 
business with sound 
financials achieving 
attractive returns
for more information see p23
our market
the leader in a fast 
growing industry that is 
set to become a larger 
part of the commercial 
property market
for more information see p45
our customers
we support our 
customers with the right 
workplace at the right 
price in the right 
location every time
for more information see p67
total available oce space 
2
98
coworking
and serviced
oces
traditional
oce
source cbre regus strategic report governance financial statements
 wwwreguscom 1
key financial highlights key growth highlights
• group operating profit increased 27 to £1043m at  
constant currency 
• strong cash performance with £1756m 186p per share  
of cash generated before net growth capital expenditure  
and dividends
• grew the network by 24 at a significantly lower average cost 
of investment
• proforma net debt of £55m adjusting for post yearend 
property disposals see cfo’s review on page 19 for details  
we selffunded growth in 2014
• achieving attractive returns on investment – 209 2014 
posttax cash return on all net investment made up to  
31 december 2011 
• group revenue increased by 158 to £16761m at  
constant currency
• 11 increase in full year dividend to 40p
• 166 new towns and cities added in year increasing depth  
and breadth of national networks 
• now in 850 towns and cities
• 452 new locations added
• increasing network to 2269 locations 
• across 104 countries 
• £207m of net capital invested in growth
• achieving significantly lower average cost of investment  
per location due to geographic and size mix and new formats
2014 posttax cash return on net investment by year group 
153
149
243
180
268
214
aggregate total return on net investment up to 2011 209
11 10 09 08 07
06 and earlier
turn to page 9 for details on how we calculate our posttax cash return on net investment
 now incorporates third place locations not previously included
14 13 12 11 10
number of locations
2269
1831
1411
1203
1084
2269
14 13 12 11 10
net growth capital expenditure £m
2066
2602
1478
712
571
£2066m
14 13 12 11 10
cash flow before growth capital 
expenditure and dividends £m
1756
1154
1124
977
418
£1756m the global workplace 
provider
regus’ network of over 2200 locations currently 
serves more than two million customers across 
some 100 countries providing convenient 
highquality places to work for any period of 
time we are the only workplace provider with 
significant and growing national networks which 
when taken as a connected whole results in a 
geographic scale that is unmatched crucially as 
our national networks and global footprint 
develop so does the group’s competitive 
advantage over other providers
our network provides the ideal work platform for 
businesses set free by mobile technology we 
put companies in control of how and where they 
work helping them to be more focused and 
productive and making sure that they only pay 
for the space they need when they need it in 
today’s world of outsourcing and a willingness 
to share resources it is not surprising that we 
are experiencing strong and growing demand for 
our products and services
driven by a structural 
market shift
as we outline in more detail on pages 45 the 
way in which people work continues to change 
rapidly driven by a wide variety of factors 
including technology globalisation and 
workforce dynamics at the same time there is a 
growing recognition from large organisations 
that these changes can drive substantial 
productivity gains alongside lower capital and 
operating costs 
as this trend develops the growth in demand for 
high quality flexible and conveniently located 
workplaces will continue our business is ideally 
placed to serve these needs and we are firmly 
focused on participating in this structural shift 
towards flexible work our investment 
programme reflects this continuing growth in 
demand with customers seeking workplaces 
ranging from our core office based locations 
railway stations motorway service stations 
airports and retail outlets
our business
regus is a fast expanding business in a rapidly growing market with  
world class capabilities and sound financial discipline we are focused  
on generating attractive sustainable returns for our shareholders 
the image below 
demonstrates the 
depth to which 
the regus 
network extends 
into the urban 
and suburban 
landscape to 
railway stations 
motorway service 
stations airports 
retail outlets 
business centres 
home and  
mobile workers
2 
our network
2269
locations strategic report governance financial statements
innovation is key
transitioning from a predominantly fixed to a 
more flexible mode of work is difficult and 
despite the significant benefits outlined above 
it’s often a major physical and cultural change for 
companies we pioneered flexible working 25 
years ago and so are in the ideal place to help 
them make the transition from fixed to flexible in 
the most efficient way technology is as 
important to this today as it was back in 1989 
when regus was founded to remain at the 
cutting edge we make significant investments in 
research and development rd this drives 
two things first it helps us better serve our 
customers and unlock additional revenue 
streams and second it helps protect existing 
revenue streams
each regus location provides a 
wide range of products and 
services that cater to the needs of 
our customers these include but 
are not limited to private offices 
meeting rooms coworking 
training rooms virtual offices and 
admin support
850
towns and 
cities
104
countries
21m
members
location diversity
set free by ever more powerful and innovative 
mobile technology work now happens almost 
everywhere as a result we are experiencing 
strong demand from a wide range of 
infrastructure providers such as airport 
operators and railway companies to partner with 
them and place our facilities in their locations 
several years ago we opened our first dropin 
facilities at train stations in the netherlands and 
motorway service stations in the uk today 
working closely with our partners regus facilities 
can be found within shopping malls and retail 
outlets university campuses and community 
centres public libraries and innovation centres 
at the same time the size of our locations now 
varies from the very small to ones that can 
accommodate more than a thousand people we 
have also begun to develop single occupancy 
facilities called workpods which will be used in 
high footfall areas what is common to all is that 
they provide a high quality place to work with a 
full suite of associated services
our locations
 wwwreguscom 3 property is not just expensive it is a fixed 
and often longterm cost it can also be 
underutilised a more flexible agile 
approach to work has been proven time 
and again to be more cost effective than 
fixed alternatives such as leasing the 
accompanying capital and operational 
expenditure is lower and an outsourced 
model is less management intensive on 
many occasions we have been able to 
reduce our customers’ costs by up to 80
significant and 
growing
today the serviced office and coworking sector 
is only a very small percentage of the entire 
workplace market
1
 while the longterm market 
opportunity is clearly very significant it is into 
this growing demand that regus is developing 
the products and services to help workers be  
as productive as possible whilst they work in  
a more flexible way
our market
the world of work continues to evolve driven by structural changes  
in how where and when people work people are increasingly working 
in more diverse locations at different times and in different ways 
organisations are finding it more difficult than ever to respond to 
these challenges and adequately support an increasingly mobile 
workforce as a result they are increasingly turning to specialist 
providers such as regus 
technology
growth drivers
cost
4 regus plc annual report and accounts 2014
from smartphones and tablets to 4g wifi 
and the cloud we increasingly work 
whenever wherever and however we want 
we expect the pace of innovation will only 
accelerate and continue to stimulate 
demand for our locations today over 
500000 of our clients work from home  wwwregusplccom 5
worklife 
balance
outsourcing
businesses’ desire to improve efficiency 
by narrowing their focus on critical core 
competencies has been a major catalyst 
in the continuing trend to outsourcing 
invariably for businesses property is not 
a core competency and so many seek ways 
to outsource this to specialist third party 
providers such as regus which improves 
the support they provide to their teams at 
a far lower cost
achieving balance between working and 
personal lives often tops professionals’ 
definitions of career success flexible 
working is a major contributor to a better 
worklife balance and is now used by 
many companies to attract and retain 
talent such is its positive impact on 
employee satisfaction
the shift to a lowcarbon economy remains 
a priority for governments flexible 
working with its reduction in commuting 
and fixed office space plays a valuable 
role in achieving this
diverse and 
fragmented
the potential of this nascent sector is significant 
and demand is strong and growing yet given its 
relative immaturity compared to the traditional 
property industry options are diverse and 
providers fragmented however we believe that 
as has happened in other industries as they 
mature consolidation will occur at the same 
time the pace and direction of customer demand 
from fixed to flexible and from inhouse to 
outsourced is driven by five fundamental factors 
as described on these pages there are also 
significant variations by geography for example 
leading market research company idc estimates 
that more than 75 of the us workforce spends 
at least one day a week away from their main 
office whereas the figure for developing 
economies is not yet approaching this level
2
 so 
the key question is where do these people work 
a clear market 
opportunity
some work from home but even then available 
data suggests that only a small minority of a 
developed economy’s workforce is based 
predominantly at home
3
 many more are working 
wherever they happen to find themselves – be 
that a coffee shop hotel roadside service 
station airport or any one of many alternatives 
clearly these are not ideal work locations poor 
levels of security high levels of distraction and a 
lack of support services being just a few of the 
issues it is for this reason that specialist 
workplace providers such as regus exist 
strategic report governance financial statements
1 cbre the world’s largest commercial real estate services 
and investment firm the workshop april 2013
2 idc worldwide mobile worker population 2011–2015 
forecast january 2012
3 uk office for national statistics characteristics of  
home workers july 2014 global workplace analytics 
september 2013
sustainability
 wwwreguscom 5 6 regus plc annual report and accounts 2014
our customers
businesses come to regus because they want to focus on their 
business rather than where they run it from they stay because we 
provide the very best service at a competitive price helping them  
be more successful   
we are committed to supporting our customers 
with the right workplace at the right price in the 
right location whether that is an entrepreneur 
needing a prestigious address to launch their 
business a corporate with a large sales team 
needing to set up an office fast or a travelling 
ceo needing a place to touchdown for an hour  
in between meetings we have shaped our 
products to meet these demands 
at the heart of our business are our centre based 
teams – dedicated hardworking passionate 
people that help make sure that our customers’ 
success is our success we make significant 
investments in training and development which 
equips our frontline teams with the right skills 
supporting 
individual workers 
dell faced a typical chickenandegg 
challenge when it decided to grow its 
business in durban on the one hand it 
was entering a small expanding market 
that didn’t warrant the risk of a traditional 
office with a longterm contract on the 
other it had to show it was willing to 
invest in the area if its sales were to gain 
traction since it already had a contract 
with regus dell gave one of its account 
executives a virtual office plus this 
provided the employee with a great 
address to build up credibility with his 
corporate customers and a place to meet 
when required 
“ working with regus lends me credibility 
and creates added value my customers 
feel more secure that dell is here to stay 
and wants to establish a relationship and 
invest in the region it makes them feel  
we are growing” 
supporting a 
distributed  
sales team
toshiba europe gmbh teg is a unit of the 
japanese technology conglomerate with 
responsibility for personal computer and 
electronic products – including notebook 
pc’s and other smart products based in 
nuess in germany the company covers a 
geographical spread from portugal to 
poland and from finland to istanbul teg 
employs over 800 people and has annual 
sales of more than 17 billion
teg typically enters new countries with a 
handful of sales employees the challenge 
is to find them suitable scalable and 
costefficient places to work they have 
used regus in this way to establish 
operations in denmark finland norway 
hungary poland and south africa
“ with regus i have one point of contact 
and one form of contract for hundreds of 
cities it’s simple costeffective and does 
not require a longterm commitment that 
either hinders growth or wastes money on 
unnecessary space it makes setting up in 
a new country risk and hassle free”
 w o lfgang go l lub   
senior manager administration –  
general affairs teg
dell  wwwreguscom 7
strategic report governance financial statements
supporting  
new approaches  
to working
“ we have found regus to provide our staff the 
flexibility they require in the workplace 
environment enabling us to make best use of 
office space reduce our capital expenditure 
and encourage new ways of working” 
aaron parmar global facilities manager 
accession acision
“ a help in implementing new ways of working 
and a tool for managing part of our real estate 
differently we do not need to invest in setting 
up a new office to have a presence in a locality 
for just the right amount of space and time a 
flexible framework agreement contributes to 
the productivity of our employees” 
robert ling real estate manager 
getronics services uk limited
supporting the 
transition from fixed 
to flexible working
with branches across 30 states money 
management international mmi is the 
usa’s largest nonprofit fullservice credit 
counselling agency 
its branches have traditionally been leased 
but the inherent inflexibility was impacting 
mmi’s ability to move quickly to new 
locations with demographics requiring their 
counselling services mmi turned to regus 
for help in restructuring how it organised its 
branch network in december 2012 mmi 
opened its first regusbased location 
branch office in las vegas nv and since 
then has opened regus offices in new york 
arizona california south carolina atlanta 
pennsylvania florida oregon indiana 
tennessee north carolina and texas and 
is currently looking into other locations 
each time one of its existing fixed leases 
becomes due mmi looks for regus 
workspace in that location 
“ with regus we only pay for the space we 
need so that is very helpful in terms of 
cost and the allin costs are also an 
important factor for example telecoms 
and it are all in place at regus so we 
don’t have to pay for connectivity and at 
regus we don’t have to pay extra for 
cleaning and security so we do see cost 
savings from using regus the 
professional receptionist staff is a huge 
advantage to us too it would not be cost 
effective for mmi to have receptionists 
within our branch locations having them 
in place as part of our overall cost is very 
advantageous” 
 jim triggs senior vice president  
money management international
supporting 
entrepreneurs
onsight films is a boutique film studio 
based in sydney’s western suburbs 
company founders marlon simmons and 
redgie duquilla were working from home 
but saw an opportunity to build their 
business regus was the perfect option for 
them to present a professional business 
image and increase their productivity  
they use regus’ location in blacktown as a 
main base and regus other 25 sydney 
locations as required
“ we deal with a diverse range of clients so 
we have decided to base ourselves in our 
local regus centre working close to 
home saves us time and increases 
productivity and the added benefit of 
regus means that when necessary we 
can meet our clients at a range of 
locations across greater sydney 
 marlon simmons founder onsight films
  8 regus plc annual report and accounts 2014
our business model
during the year we made excellent progress in all aspects of our 
business model our consistent and successful strategy applied across 
markets where demand for our products and services is growing 
delivered another good operating and financial performance this year 
for the group
5 
investment  
in growth 
our business comprises four fundamental 
elements our people network products 
and brand the geographic scale of regus’ 
operations is unmatched and critically as 
our physical network grows so does the 
group’s competitive advantage over other 
workplace alternatives
we invest a significant amount of cash in 
growth either through organic openings 
or acquisitions we continue to find many 
high quality opportunities that deliver our 
stringent returns criteria growth has been 
enhanced by our continued investment in 
developing new location formats and a 
greater diversity in partner relationships 
together these have helped the group 
grow in a more capital efficient way with a 
reduction in net growth capital 
expenditure per location
the group’s ability to alter growth plans to 
reflect changing market conditions is 
another important part of its capability to 
manage risk through the economic cycle 
with relatively short lead times between 
contracting with our partner and opening a 
new location the group can quickly 
capitalise on a favourable investment 
environment and invest in attractive 
assets or restrict growth depending on 
the economic cycle 
businesses use regus because they want  
to be in the best places where they can focus 
on what they are doing not where they are 
doing it from they stay because we provide 
them with an excellent service at a 
competitive rate and most importantly with 
a product that flexes to meet their every 
requirement as a result demand continues 
to increase and over the course of 2014 we 
exceeded 2 million members
1 
our business 
2 
customers   wwwreguscom 9
4 
cash 
the strong conversion of profit into cash is 
an attractive feature of the regus business 
model the cash flows we generate from 
our network support a significant 
proportion of our continued investment in 
developing our network where we see the 
potential for attractive returns as well as 
funding valuable location additions to our 
network strong cash generation underpins 
the group’s progressive dividend 
the group focuses on optimising revenue 
generation through improving the 
performance of each location which when 
combined with strong discipline on 
overhead costs which have reduced as a 
percentage of revenues provides a solid 
foundation to deliver strong returns 
how we calculate our returns 
these returns are based on the posttax 
return divided by the net growth  
capital investment 
posttax cash return  ebitda less 
amortisation of partner contribution less tax 
based on ebit less maintenance capital 
expenditure 
net growth capital investment  growth 
capital less partner contributions
the group’s approach to investment 
ensures it delivers strong posttax cash 
returns we generate longterm 
shareholder value through returnson
investment well in excess of the group’s 
cost of capital figure a shows the returns 
achieved in 2014 by individual year group 
investments back to 2007 and the 
combined performance of all locations 
opened in or earlier than 2006
3 
returns 
strategic report governance financial statements
 wwwreguscom 9
returns to 
shareholders
we have a progressive dividend policy  
and with the 11 increase for 2014 we 
have doubled our dividend over the last 
five years 
figure a
2014 posttax cash return on net investment 
95
149
243
153
42 00
180
268
214
14 13 12 11 10 09 08 07
06 and
earlier 10 regus plc annual report and accounts 2014
chairman’s statement
the group has had a good 
year it significantly increased 
the size of its network while 
also growing revenues and 
profits as a result we 
continued to deliver attractive 
returns on investment 
during 2014 group revenues grew to 
£16761m 2013 £15335m an increase 
of 158 at constant currency 93 at 
actual rates operating profit improved  
by 27 at constant currency to £1043m 
2013 £908m up 15 at actual rates 
this performance is all the more pleasing 
given the adverse impact of startup costs 
associated with our higher investment in 
growth in recent years 
we evaluate the underlying performance of 
the business by looking at the returns we 
are able to generate from the investments 
we have made during 2014 i am pleased to 
report that locations opened on or before 
31 december 2011 which for clarity are 
locations opened over the first 23 years of 
operation achieved an annual posttax 
cash return on investment of 209
4
 well 
above our cost of capital the specific 
calculation methodology for these returns 
is covered in detail in the cfo’s review  
on page 1619
given these strong returns the board was 
encouraged by the ability of the business 
to fund additional attractive investment 
opportunities during the year well ahead 
of its original estimate of at least 300 new 
locations adding 452 locations in 2014 
further strengthens the foundations for 
enhanced longterm shareholder returns 
furthermore we achieved this whilst 
maintaining a robust balance sheet and 
investing less of our own capital – indeed 
we actually generated net cash of £23m  
in the second half of the year a period in 
which we added 258 new locations we 
have also taken the opportunity provided 
by good access to debt capital to increase 
and diversify our available facilities 
strategy
our strategic objectives include growing the 
underlying value of our business through 
disciplined investment in quality workplaces 
that expand our national networks while 
providing attractive returns to shareholders 
returns to shareholders are further enhanced 
through our focus on efficient and scalable 
operations at both the centre and group 
level our efforts to improve the 
communication of our performance against 
our strategic objectives are reflected in this 
annual report
we continue to benefit from the trend of 
businesses looking to outsource noncore 
activities of which real estate is one and the 
shift from fixed to flexible working these 
changes occur even through variations in the 
macroeconomic climate and as such they 
continue to present the group with 
significant opportunities for growth
staying close to our customers and 
providing them with the very best service is 
paramount to our success we continuously 
look for ways to improve the customer’s 
experience and this underlines the 
importance of our continued investment in 
innovation our ability to invest in rd at a 
scale unmatched by our competitors helps 
define and reinforce our leadership position  
we understand the benefits of engaging 
with the local economies in which we 
operate and have expanded the support 
for projects of our team members in their 
communities in addition while flexible 
working helps our customers reduce their 
carbon emissions we are working to 
minimise the inevitable environmental 
impact resulting from our significant 
growth through ongoing energy saving 
and sustainability initiatives
board
key roles of the board include assuring a 
sound strategy is in place and adapted to 
changing conditions ensuring we have the 
management and resources to deliver that 
strategy overseeing management’s progress 
in its execution and ensuring the company 
and attendant risks are well managed
as the breadth and scope of the group’s 
operations expand we have undertaken a 
douglas sutherland
chairman
4 posttax cash returns on net invested  ebitda 
less amortisation of partner contribution less 
tax less maintenance capex  gross capital 
expenditure less partner contribution
number of initiatives to ensure that the 
strategy can be delivered successfully our 
ongoing efforts to focus on our strategic 
objectives and initiatives in both board 
and management activities is paying off 
evidenced in the numbers we are able to 
present today we continue to review and 
monitor our remuneration policy to ensure 
that the execution of our strategy includes 
an alignment of interests and incentives 
between our shareholders and executives 
in may 2014 we welcomed nina henderson 
to the board she has already made a 
strong contribution and recently assumed 
chairmanship of the remuneration 
committee we have a strong and well 
balanced team with skills and experience 
that complement each other well
people 
to achieve these results we rely on the 
commitment and skill of our talented and 
experienced people it is because of their 
dedication energy and total focus on the 
customer that the business is the success it 
is to each and every one of them thank you
dividend 
over the last five years we have doubled 
our dividend payment per share we remain 
committed to the payment of a sustainable 
and progressive dividend it underlines our 
confidence in the longterm performance of 
the business the strength of our balance 
sheet and the quality of our assets
i am therefore pleased to announce that 
the board is recommending an increase in 
the final dividend of 10 to 275p subject 
to the approval of shareholders at the 
2014 agm this will be paid on 29 may 
2015 to shareholders on the register at the 
close of business on 1 may 2015
douglas sutherland
chairman
3 march 2015  wwwreguscom 11
strategic report governance financial statements
lower capital and operating costs regus’ 
business model is firmly focused on 
participating in this structural shift 
towards flexible work 
as this trend develops the growth in 
demand for high quality flexible and 
conveniently located workplaces will also 
continue our investment programme 
reflects this continuing growth in demand 
with customers seeking workplaces in 
locations including our core office based 
locations railway stations motorway 
service stations airports and retail outlets 
among many others
chief executive officer’s review
our business has performed 
well we exceeded 
expectations on growth 
controlled costs and generated 
attractive sustainable returns
oninvestment for our 
shareholders 
group revenues increased by 158  
at constant currency to £16761m  
2013 £15335 93 at actual rates 
operating profit increased to £1043m  
up 27 at constant currency 15 at  
actual rates 
we have improved the gross margin on the 
locations which were added during 2012 
and 2013 these locations now represent a 
more significant part of our overall revenue 
generated which increases their relative 
weighting on the overall group result we 
continue to achieve a strong level of gross 
margin on all our locations that were open 
on or before 31 december 2011 the initial 
margin achieved by our new 2014 
locations is good and on track but these 
are very young and a long way from 
financial maturity
i am also particularly pleased with the 
further substantial progress achieved in 
improving the operational effectiveness  
of the business total group overheads 
including increased investment in rd 
were up only 4 at constant currency 
whilst the size of our network increased 
24 as a result total overheads as a 
percentage of revenue reduced from 185 
to 167 as we continue to grow i expect 
further improvements in this regard
consequently the annual posttax cash 
return on investment achieved this year 
from centres opened on or before 31 
december 2011 was 209 which is a 
good return
market
the way in which people work is changing 
rapidly driven by a wide variety of factors 
including technological change 
globalisation and changing workforce 
dynamics with growing recognition from 
large organisations that effectively 
harnessing these changes can underpin 
substantial productivity gains alongside 
mark dixon
chief executive officer 
group income statement
£m 2014 2013
 change 
actual 
currency
 change 
constant 
currency
revenue 16761 15335 93 158
gross profit centre contribution 3831 3738 2 9
overheads inc rd 2796 2831 1 4
operating profit

1043 908 15 27
profit before tax 871 815 7 19
taxation 172 146
profit for the period 699 669 4 17
ebitda 2248 1883 19 29
 after contribution from joint ventures
gross margin
revenue £m gross margin 
2014 2013 2014 2013
mature 11 11514  12122  289  293 
new 12 1541  1365  174  53 
new 13 2911  1568  101  41 
pre14 15966  15055  245  245 
new 14 728  –   89  –   
group including closures 16761  15335  229  244 
  12 regus plc annual report and accounts 2014
chief executive officer’s review continued
performance against our strategic 
objectives
delivering attractive sustainable returns
our investments consistently deliver 
strong returns well above our cost of 
capital we are confident that those made 
in 2014 will in due course achieve similar 
strong returns
the increased diversity of our network  
and number of partners is a positive 
development of the last few years we now 
have locations from the very busiest city 
centres to large villages ranging in size 
from 150sqm to 15000sqm the wide 
variety of format and service diversity 
means there is no longer a typical average 
centre for the group 
following feedback from a number of 
stakeholders regarding the presentation  
of the group’s performance the board  
has decided that additional insight can  
be provided through the disclosure of 
posttax cash return on net investment 
data by year accordingly i am pleased to 
report that locations opened on or before 
31 december 2011 achieved an annual 
posttax cash return on investment of 
209 2013 178 on locations opened 
on or before 31 december 2010 well 
above our cost of capital 
develop national networks
this has been another strong period of 
growth for the group we opened in 166 new 
towns and cities increasing our coverage 
from 684 to 850 cities we added 452 new 
locations increasing the size of our network 
by 24 to 2269 to achieve this we 
invested net growth capital of £2066m 
2013 £2602m the reason for the lower 
level of investment in 2014 is mainly due to 
the geographic mix and diversity in deal 
types as of 28 february 2015 we have 
visibility on growth that will call for a net 
capital investment of approximately £120m 
on some 400 new locations we will provide 
updates on this as we progress through 
2015 as in previous years these new 
investments will be a mix of organic 
openings and acquisitions we believe all 
will meet our stringent returns criteria and 
deliver longterm sustainable returns well 
ahead of our cost of capital
industry leading innovation
we have continued to invest in rd as we 
look to create new formats improve 
existing ones and develop new products 
and services over the period we therefore 
increased spend on rd by 21 to £87m 
2013 £72m
there is continued strong interest and 
demand globally from a wide variety of 
infrastructure owners and operators for us 
to engage with and help them better serve 
their customers during the year we 
partnered with the singapore government to 
open facilities within their public libraries as 
well as expanding the regus global airport 
network we launched a new initiative aimed 
at universities the first deal of which was 
signed with helsinki university we also 
partnered with philips taking responsibility 
for the management of their innovation 
centre evoluon in eindhoven  
controlling costs
against an increase in the network of 24 
total overheads increased by only 4 at 
constant currency down 1 at actual 
rates reflecting our continued focus on 
cost control 
management both in the field and at group 
level remain focused on further improving 
efficiency and productivity as well as 
delivering scale benefits as we grow all 
functions underwent some restructuring in 
2014 as we invested further in management 
streamlined our processes and maximised 
the value of our shared service centres we 
also increased our investment in rd and in 
our network development function to 
support the future growth of the business 
we expect to deliver further efficiencies and 
scale benefits in coming years  wwwreguscom 13
strategic report governance financial statements
outstanding teamwork
it has been a year of good progress for the 
group – strategically operationally and 
financially this was achieved only with the 
dedication focus and commitment of our 
people as a servicebased business the 
strength and capabilities of our increasingly 
geographically diverse team are critical to 
achieving our objectives and i thank all of 
our staff for their considerable efforts
we continually review the structure of our 
organisation to get the most out of our 
assets and to optimise on project delivery 
with the continued growth and 
development at a country level a strong 
local management presence is required 
we continue to believe that our current 
organisational model – strong local 
incountry units assisted by support 
functions focused on strategy and  
process optimisation – will deliver our 
strategic goals 
our ability to recruit train promote and 
retain top quality talent with diverse 
backgrounds is a core strength of the 
business and important to our longterm 
success for the group as a whole our 
workforce is 75 female 25 male 2013 
70 female 30 male at a group 
operational level the breakdown is broadly 
equal no change on last year and at a 
senior management level 33 of positions 
are held by women 2013 30 we remain 
committed to a fair approach and equal 
opportunities in all areas of our business
outlook
the business is performing well our past 
investments are producing attractive 
returns that are well above our cost of 
capital this performance gives us the 
confidence to continue to invest thereby 
enhancing future shareholder value as of 
28 february 2015 we had clear visibility 
over net investments of approximately 
£120m which will increase the size of our 
network by some 400 locations we will 
provide regular updates on our pipeline 
visibility as the year progresses
we expect to reduce costs further as a 
percentage of sales as we leverage  
our increased scale and drive new 
operational efficiencies this will further  
enhance earnings
as the world of work continues to develop 
and more organisations look to outsource 
their workplace needs so the future 
remains positive for regus current trading 
is in line with management’s expectations 
and we remain confident in our business 
model and prospects for 2015 
mark dixon
chief executive officer
3 march 2015 14 regus plc annual report and accounts 2014
our strategy and key performance indicators
strategic objectives our approach
revenue growth achieved through the 
addition of new locations the development 
of incremental revenue streams and active 
management of the existing network to 
drive efficiency all contribute to 
improvements in gross profit combined 
with strong overhead cost control this 
drives operating profit and cash flow 
generating strong returns on investment 
well ahead of the group’s cost of capital
growth is demandled as we respond to 
customers looking to outsource more of 
their workplace needs andor benefit from 
the flexibility and convenience we provide 
by expanding our networks we expand our 
addressable audience and provide our 
existing customers with additional 
convenience it is important to remember 
that our locations perform well in their 
own right and that the network then 
provides incremental opportunities
we continue to be mindful of growing only 
in locations where the potential 
investment opportunity meets our 
stringent returns criteria 
we are also focused on using more capital 
efficient ways of expanding the network
cost control is achieved through 
operational excellence and the significant 
economies of scale and operational 
leverage that network growth brings
innovation is core to regus’ strategy and 
allows us to maintain our marketleading 
position and customer service we invest 
in rd to ensure we stay on top of and 
even help shape trends by developing 
location formats products and services 
that meet our customers’ needs and help 
them work more conveniently efficiently 
and effectively new product development 
provides existing customers with 
additional reasons to use regus and also 
opens up new revenue opportunities
the strategy is clear and simple to leverage our scale and 
unique position to deliver attractive and sustainable returns
delivering 
attractive 
sustainable 
returns
developing 
national 
networks
controlling 
costs
industry 
leading 
innovation strategic report governance financial statements
 wwwreguscom 15
key performance indicators how we did future ambitions and risks
delivering profitable growth and strong 
sustainable returns is central to creating 
future shareholder value regus is 
committed to delivering these returns by 
optimising revenue development and 
controlling costs our post 2011 
investments are progressing as expected
we will continue to add breadth and 
convenience to the network through 
further measured investment in high 
quality assets with the potential for 
attractive returns for shareholders as  
of 28 february 2015 we had visibility  
over approximately £120m of net  
growth capital expenditure for 2015 
representing some 400 locations 
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 and processes
we anticipate increasing our investment 
in rd as the group focuses on customer 
requirements and developing 
appropriate offerings to satisfy their 
needs we believe this provides a key 
point of differentiation for regus 
2014 posttax cash return on net 
investment 
overall 2014 return on net investment 
made up to 31 december 2011 of 209
network location growth
452 new locations added opening in  
166 new towns and cities at a net growth 
capital investment of £2066m 
total overheads as a  of revenues 
overheads as a  of sales reduced  
18ppt to 167
investment in rd £m
£87m invested up 21
return on net investment
153
243
149
180
268
214
11 10 09 08 07
06 and
earlier
14 13 12 11 10
2269
1831
1411
1203
1084
14 13 12 11 10
87
72
45
31
26
14 13 12 11 10
167
185 185
193
190 16 regus plc annual report and accounts 2014
chief financial officer’s review
be allocated on the basis of actual new 
workstation sales made in the relevant 
financial reporting period the remainder 
of the group overhead base is then 
allocated on a time apportioned prorata 
basis by reference to the average number 
of available workstations with no 
weighting for growth 
developing the network 
during 2014 we invested net growth 
capital of £2066m adding a further 452 
locations to the network in 2013 we 
invested net growth capital expenditure of 
£2602m adding 448 locations this 
represents a reduction in the net capital 
cost per location which we are pleased to 
have achieved it reflects various factors 
including geographic mix different 
location formats and size increased levels 
of partnering balance between 
acquisition and organic growth and a 
more rigorous approach to the design of 
new locations to reduce capital cost we 
are confident that the returns from the 
investments made in 2014 will in due 
course be attractive and ahead of the 
group’s cost of capital
we continue to have a good pipeline of 
new openings as of 28 february 2015 we 
had visibility on growth that will cost in the 
region of £120m and represent some 400 
new locations we will provide updates on 
our pipeline visibility as we progress 
through 2015 
as noted previously every potential 
investment is rigorously evaluated by our 
internal investment committee and has to 
meet the stringent financial hurdles before 
being approved this is a process to which 
we apply maximum focus given how 
critical the original investment decision is 
to our ultimate success 
this has been a good year for 
the group the strength of our 
business model is reflected in 
the attractive return on 
investment delivered
return on investment
our growth strategy is returns driven and 
focused on achieving our posttax cash 
payback criteria which typically is within 
four years therefore as highlighted in our 
2014 interim results statement we believe 
it is more appropriate to report on value 
creation by referencing the net 
investments made and the associated 
returns generated 
for the 12 months to 31 december 2014 the 
group delivered an annual posttax cash 
return on investment of 209 in respect of 
locations opened on or before 31 december 
2011 and which are therefore more 
established in respect of their financial 
performance 2013 178 based on 
locations opened on or before 31 december 
2010 this demonstrates returns ahead  
of the group’s cost of capital thereby 
generating strong shareholder value  
these returns are based on the posttax 
cash return divided by the net growth 
capital investment the posttax return is 
calculated as the ebitda achieved less  
the amortisation of any partner capital 
contribution less tax based on the ebit 
and after deducting maintenance  
capital expenditure net growth capital 
investment is the growth capital after any 
partner contributions this provides an 
appropriate and conservative measure  
of cash return
the graph below shows the posttax cash 
returns achieved in 2014 by individual 
year back to 2007 and the performance  
of all those locations added on or before  
31 december 2006 
returns vary between year groups for a 
number of reasons notably variations in 
geographical performance different 
investment levels from mix of deal types 
and movements in currency exchange rates 
from date of investment to current year 
simplified overhead allocation
we have simplified the methodology by 
which group overheads are allocated to 
specific investment years
the allocation of group overheads used in 
the returns calculations below is now 
based on two simple criteria sales and 
marketing related overheads continue to 
dominique yates
chief financial officer
net growth capital investment on locations opened in year £m
4582 496 441 205 534 797 2500 1468 1961
 note these amounts relate to net investment based on the year of opening of the centre depending on   
 the timing of opening some capital expenditure can be incurred in the calendar year before or aer opening
2014 posttax cash return on net investment by year group 
95
149
243
153
42
00
180
268
214
14 13 12 11 10 09 08 07
06 and
earlier strategic report governance financial statements
 wwwreguscom 17
chief financial officer’s review
financial performance
revenue
the group has produced another good set 
of results whilst delivering against our key 
strategic objectives notwithstanding the 
negative impact from the strength of 
sterling on the translation of our 
significant international earnings group 
revenues increased 158 at constant 
currency to £16761m 2013 £15335m 
an increase of 93 at actual rates 
gross profit
group gross profit improved 9 at 
constant currency rates to £3831m 2013 
£3738m up 2 at actual rates as 
highlighted in the ceo review on page 11 
the decline in the group gross margin from 
244 to 229 reflects the impact of 
dilution from a relatively higher number of 
immature locations as we have invested 
significantly in growing the network over 
the last couple of years even though the 
margin performance of these newer year 
groups improved the mature gross margin 
from locations added on or before 31 
december 2012 based on a likeforlike 
estate improved from 268 to 277  
as highlighted in the table opposite
improved overhead efficiency
at a time of continued and significant 
growth the group has made further good 
progress in relation to the total overheads 
management remain focused on improving 
efficiency and productivity as well as 
delivering scale benefits as we grow all of 
our functions underwent some restructuring 
this year as we invested in management 
and looked to further streamline our 
processes and maximise the value of our 
shared service centres as a consequence 
and in spite of significant growth 
overheads grew only 4 at constant 
currency to £2796m down 1 at actual 
gross margin
£m
mature 
centres 
2014
new centres 
2014
closed 
centres 
2014
total 
2014
revenue 13055 3639 67 16761
cost of sales 9442 3410 78 12930
gross profit centre contribution 3613 229 11 3831
gross margin 277 63 164 229
£m
mature 
centres 
2013
new centres 
2013
closed 
centres 
2013
total 
2013
revenue 13487 1568 280 15335
cost of sales 9866 1504 227 11597
gross profit centre contribution 3621 64 53 3738
gross margin 268 41 189 244
group income statement
£m 2014 2013
actual 
 
constant 
 
revenue 16761 15335 93 158
gross profit centre contribution 3831 3738 2 9
overheads 2796 2831 1 4
joint ventures 08 01
operating profit 1043 908 15 27
net finance costs 172 93
profit before tax 871 815 7 19
taxation 172 146
effective tax rate 197 179
profit for the period 699 669 4 17
basic eps p 74  71 4 17
depreciation  amortisation 1205 975
ebitda 2248 1883 19 29 18 regus plc annual report and accounts 2014
chief financial officer’s review continued
rates against a 24 increase in our 
network of locations we also continued  
to increase investment in rd up 21 to 
£87m and in our network development 
function to support future growth as a 
percentage of revenues total overheads 
declined from 185 in 2013 to 167 in 
2014 we continue to maintain a strong 
focus on overhead discipline and anticipate 
further scale benefits to be delivered
operating profit
as a result of this strong cost discipline 
and scale benefits operating profit 
increased 27 at constant currency to 
£1043m 2013 £908m up 15 at actual 
rates consequently the group statutory 
operating profit margin increased from 
59 to 62  
net finance costs
as anticipated the group’s net finance 
costs have increased significantly from 
£93m to £172m this increase reflects the 
following factors
• net debt has increased significantly 
albeit by less than originally expected 
from £57m to £138m as the group has 
invested in growth
• available debt finance increased by 
£164m to £484m to ensure appropriate 
financing headroom with the increased 
availability came the attendant  
carry costs
• taking advantage of the low interest 
rate environment and to provide the 
group with certainty of financing costs 
and protection against higher interest 
rates swaps were utilised during the 
period to convert a substantial portion 
of debt from floating to fixed rates
within the overall net finance costs the 
group also incurred a notional noncash 
interest charge of £20m 2013 £21m 
relating to the accounting treatment of fair 
value adjustments on various acquisitions 
in past years 
tax 
the tax charge for the year was 197 
2013 179 this tax rate is consistent 
with our anticipated longterm effective 
tax rate of 20
earnings per share
group earnings per share increased 17  
at constant currency to 74p 2013 71p 
up 4 at actual rates this reflects the 
increase in net income after higher 
interest costs associated with growing the 
business the increase in the effective tax 
rate noted above and the attendant initial 
losses associated with new locations 
the weighted average number of shares  
in issue for the year was 944081638 
2013 943775413 during the year the 
group purchased 9484516 shares 
designated to be held in treasury the 
group has also over the same period 
reissued 1858441 shares from treasury
cash flow
group cash generation continues to be 
strong cash generated before the 
investment in growth capital expenditure 
and the payment of dividends increased to 
£176m representing 186p per share
we are pleased that we have been able  
to continue to find attractive investment 
opportunities that meet our returns criteria 
and build further longterm shareholder 
value accordingly the £176m of cash 
generated has been applied to fund a 
substantial proportion of the 24 growth 
in locations in 2014 in total this involved 
a net capital outflow on growth of £2066m 
after deducting £47m of cash capital 
contributions received in the period from 
partners this represents a lower level of 
net growth capital investment than in the 
corresponding year for a similar number of 
locations added notwithstanding this the 
growth in 2014 exceeded that which the 
group could selffund so together with 
the payment of the dividend net debt 
increased by £81m 
as our business grows in scale so does its 
ability to fund future growth from internal 
cash generation for example in the 
second half of the year the business 
generated £23m of net cash from a first 
half net debt position of £161m despite 
adding 258 new locations albeit the 
group experienced some positive working 
capital movements over the yearend
balance sheet  gearing
we closed the year with a net debt position 
of £138m this represents a group ebitda 
leverage ratio of 06 times an 
improvement since the half year it remains 
our intention to keep this ratio below c 15 
times in order to maintain our prudent 
approach to the group’s capital structure
balance sheet management is an 
important activity and the group’s capital 
structure is kept under regular review  
the group currently has £484m of debt 
funding facilities which is made up of a 
£320m revolving credit facility and 
£164m €210m “schuldschein” debt 
securities issued during 2014 the 
proceeds of the latter which was well 
supported by the market and consisted of 
€165m of threeyear notes and €45m of 
fiveyear notes was used to reduce the 
borrowing on the revolving credit facility
taking advantage of the very low interest 
rate environment and to provide greater 
certainty over financing costs and cash 
flows over the medium term the group 
took out swaps to convert the floating 
rates on the £164m €210m debt 
securities into fixed rates a currency swap 
was also used to maintain the currency 
profile of our debt 
during 2014 the group was accorded a credit 
rating of a for longterm debt and a1 for 
shortterm debt by eganjones eganjones is 
a nationally recognized statistical ratings 
organization and is recognised by the 
national association of insurance 
commissioners as a credit rating provider 
our growth programme is the single 
largest user of the cash the group 
cash flow
the table below reflects the group’s cash flow
£m 2014 2013
group ebitda 2248 1883
working capital 751 641
less growth related partner contributions 470 604
maintenance capital expenditure 538 532
taxation 209 171
finance costs 135 55
other items 109 08
cash flow before growth capital expenditure and dividends 1756 1154
gross growth capital expenditure 2536 3206
less growth related partner contributions 470 604
net growth capital expenditure
5
2066 2602
total net cash flow from operations 310 1448
corporate financing activities 173 04
dividend 354 311
opening net cashdebt 572 1200
exchange movements 29 17
closing net debt 1380 572
5 net growth capital expenditure of £2066m relates to the cash outflow in 2014 accordingly it includes 
capital expenditure related to locations added in 2013 and 2015 as well as 2014 the total net 
investment in the 2014 additions amounts to £1961m so far strategic report governance financial statements
generates accordingly our capital 
expenditure plans remain flexible and we 
have the ability to adjust future investment 
levels in a timely manner
post yearend disposal 
since the yearend we have completed  
the sale of various portfolios of property 
assets these disposals raised £84m  
of cash and an exceptional profit of 
approximately £20m after expenses which 
will be reported in our 2015 interim results 
deducting these proceeds from our closing 
net debt provides a proforma closing 
position of £55m this is almost identical 
to the £57m opening net debt level for the 
year and is testament to the group’s 
attractive cash generation capability given 
the strong level of investment in growth 
through the year this disposal would have 
reduced the group’s proforma net debt  
to ebitda ratio to 03x at the end  
of 2014
foreign exchange
the group’s results are exposed to 
translation risk from movement in 
currencies our reporting currency is 
sterling in the final quarter of 2013 
sterling strengthened considerably and 
this trend continued for much of 2014 as 
a result the movement in exchange rates 
during the period had a negative impact 
on the translation of our financial results 
overall the strength of sterling reduced 
our reported revenue gross profit and 
operating profit by £997m £244m and 
£114m respectively over the 
corresponding period last year
in recent months we have witnessed the 
us dollar start to strengthen against 
sterling whilst this is encouraging 
sterling has however continued to 
strengthen against both the yen and euro 
overall however based on current 
exchange rates and the relative weight of 
our us dollar earnings there is currently a 
mild tailwind as we look forward to 2015 
rather than the strong headwind 
experienced through 2014 
the table above sets out the principal 
exchange rates affecting the reporting  
of the group’s international profits and  
net assets
risk management
the principal risks and uncertainties 
affecting the group remain unchanged a 
detailed assessment of the principal risks 
and uncertainties which could impact the 
group’s longterm performance and the 
risk management structure in place to 
identify manage and mitigate such risks 
can be found on pages 2023 and 36 and  
37 of the annual report and accounts
related parties
there have been no changes to the type of 
related party transactions entered into by 
the group that had a material effect on the 
financial statements for the period ended 
31 december 2014 details of related party 
transactions that have taken place in the 
period can be found in note 30 to the 2014 
annual report and accounts page 87
dividends
in considering returns to equity 
shareholders the board aims to provide a 
progressive dividend with consideration 
to both profitability and cash generation 
at a level that is sustainable across the 
cycle consistent with this policy and 
subject to shareholder approval we will 
increase the final dividend for 2014 by 
10 to 275p 2013 25p this will be paid 
on friday 29 may 2015 to shareholders  
on the register at the close of business  
on friday 1 may 2015 this represents  
an increase in the full year dividend of  
11 taking it from 36p for 2013 to 40p 
for 2014 
dominique yates
chief financial officer
3 march 2015
foreign exchange rates
at 31 december annual average
per £ sterling 2014 2013  2014 2013 
us dollar 156 165 5 164 157 4
euro 128 120 7 125 118 6
japanese yen 186 174 7 175 153 14
 wwwreguscom 19 20 regus plc annual report and accounts 2014
the successful delivery of regus’ strategy 
depends on our ability to identify and 
manage the risks associated with  
our business 
regus’ business may be impacted by 
various risks leading to failure to achieve 
strategic targets for growth loss of financial 
standing cash flow earnings return on 
investment and reputation not all these 
risks are wholly within the group’s control 
and it may be affected by risks which are not 
yet manifested or reasonably foreseeable
effective risk management is critical to 
achieving our strategic objectives and 
protecting our personnel assets and our 
reputation regus therefore has a 
comprehensive approach to risk 
management as set out in more detail in 
the corporate governance report
a critical part of the risk management 
process is to assess the impact and 
likelihood of risks occurring so that 
appropriate mitigation plans can be 
developed and implemented
for all known risks facing the business 
regus attempts to minimise the likelihood 
and mitigate the impact according to the 
nature of the risk regus may elect to take or 
tolerate risk treat risk with controls and 
mitigating actions transfer risk to third 
parties or terminate risk by ceasing 
particular activities or operations regus 
has zero tolerance of financial and ethics 
noncompliance and ensures that health 
safety environmental  security risks are 
managed to levels that are as low as 
reasonably practicable
whilst overall responsibility for the risk 
management process rests with the board 
it has delegated responsibility for assurance 
to the audit committee executive 
management is responsible for designing 
implementing and maintaining the 
necessary systems of internal control
a list of key risks is prepared and the board 
collectively assesses the severity of each 
risk the likelihood of it occurring and the 
strength of the controls in place this 
approach allows the effect of any mitigating 
procedures to be reflected in the final 
assessment it also recognises that risk 
cannot be totally eliminated at an 
acceptable cost and that there are some 
risks which with its experience and after 
due consideration the board will choose  
to accept
as risk management continues to move up 
the agenda the activity of the audit 
committee has become more important  
and increasingly embedded in the  
group’s activities
effective risk management requires 
awareness and engagement at all levels  
of our organisation it is for this reason that 
risk management is incorporated into the 
daytoday management of our business 
as well as being reflected in the group’s 
core processes and controls the board 
oversees the risk management strategy and 
the effectiveness of the group’s internal 
control framework risk management is at 
the heart of everything we do particularly 
as we look to grow across multiple markets 
around the world for this reason we 
conduct risk assessments throughout  
the year as part of our business review 
process and all investment decisions  
these activities include
• monthly business reviews of all countries 
and group functions 
• individual reviews of every new location 
investment and all acquisitions
• annual planning process for all markets 
and group functions
• annual risk assessment exercise with 
sixmonthly reviews with participation of 
all senior managers
risk management
given the scale of our business the board recognises that whilst it 
aims to maximise returns the nature scope and potential impact of our 
key business and strategic risks must be understood and managed
board
• defines regus’ risk appetite  
and tolerance
• overall responsibility for risk 
management compliance
• assesses effectiveness of internal 
control systems
audit committee
• reviews effectiveness of internal 
controls
• monitors progress against internal 
and external audit recommendations
• approves the annual internal and 
external audit plans
general management
• responsible for compliance and ensuring that staff are adequately trained
senior leadership team
• accountable for the design and 
implementation of risk management 
processes and controls
• accountable for the regular review 
and appraisal of key risks
• contributes to the identification  
and assessment of key risks
business assurance function
• assists management and the board in conducting risk studies
• advises and guides on policies and internal control framework
• reviews risk profiles
• tests compliance with internal controls strategic report governance financial statements
 wwwreguscom 21
principal risks
risk mitigation progress in 2014
strategic
lease obligations – the single 
greatest financial risk to regus is 
represented by the financial 
commitments deriving from the 
portfolio of leases held across  
the group
whilst regus has demonstrated 
consistently that it has a 
fundamentally profitable 
business model which works in 
all geographies the profitability 
of centres is impacted by 
movements in market rents 
which in turn impact the price  
at which regus can sell to  
its customers
the fact that the outstanding 
lease terms with our landlords 
are on average significantly 
longer than the outstanding 
terms on our contracts with our 
customers creates a potential 
mismatch if rentals fall 
significantly which can impact 
profitability and cash flows
this risk is mitigated in a number of ways
1  92 of our leases are ‘flexible’ meaning that they are 
either terminable at our option within six months and  
or located in or assignable to a standalone legal entity 
which is not fully cross guaranteed in this way 
individual centres are sustained by their own 
profitability and cash flow during the most recent 
downturn we were able to negotiate revised terms with 
our partners to reflect downward movements in market 
rates to help recovery 
2  around a quarter of our leases with landlords are 
variable in nature which means that payments to 
landlords vary with the performance of the relevant 
centre in this way the ‘risk’ to profitability and cash flow 
of that centre from fluctuations in market rates is 
softened by the consequent adjustment to rental costs 
in a number of cases we take no risk at all since the 
lease is signed by a partner who also undertakes all of 
the capital investment and pays us a fixed percentage of 
revenues as well as a share of centre profit
3  the sheer number of leases and geographic diversity of 
our business reduces the overall risk to our business as 
the phasing of the business cycle and the performance 
of the commercial property market often varies from 
country to country and region to region
4  each year a significant number of leases in our portfolio 
reach a natural break point
during 2014 the number of ‘flexible’ 
leases as a percentage of the total 
increased from 84 to 92 at the 
end of 2014 we were operating 
2269 locations in 850 towns and 
cities across 104 countries
economic downturn – an 
economic downturn could 
adversely affect the group’s 
operating revenues thereby 
reducing operating performance 
or in an extreme downturn result 
in operating losses
the group has taken a number of actions to mitigate this 
risk
1  almost a quarter of our leases are performance related 
to a greater or lesser extent and our rental payments if 
any vary with revenues earned by the centre
2  lease contracts include break clauses when leases can 
be terminated at our behest the group also looks to 
stagger leases in locations where we have multiple 
centres so that we can manage our overall inventory in 
those locations
3  we review our customer base to assess exposure to a 
particular customer or industry group
4  the increasing geographic spread of the group’s 
network increases the depth and breadth of our 
business and provides better protection from an 
economic downturn in a single market or region
we increased the number of centres 
operating on performance related 
leases by 33
we also increased the scale of our 
network by 24 and added 166 new 
towns and cities our monthly 
business performance reviews 
provide early warning of any impact 
on our business performance and 
allow management to react with 
speed more generally investment in 
our management team has also led 
to improved more responsive 
decisionmaking at a country and 
area level
shifting demand and technology 
trends – technology 
developments are driving  
demand for flexible working  
failure to recognise these could 
mean regus’ product offering is 
suboptimal
regus continually invests in rd to develop new products 
and services to increase its competitive advantage  
protect current revenues and unlock potential new  
sources of revenue
the group increased spend on rd 
by 21 in 2014 22 regus plc annual report and accounts 2014
risk management continued
risk mitigation progress in 2014
financial
exchange rates – the principal 
exposures of the group are to  
the us dollar and the euro with 
approximately 324 of the 
group’s revenues being 
attributable to the us dollar  
and 142 to the euro
any depreciation or appreciation 
of sterling would have an adverse 
or beneficial impact to the 
group’s reported financial 
performance and position 
respectively the group does not 
generally hedge the translation 
exchange risk of its business 
results rather it assumes that 
shareholders will take whatever 
steps they deem necessary based 
on their varied appetites for 
exchange risk and differing base 
currency investment positions
1  given that transactions generally take place in the 
functional currency of group companies the group’s 
exposure to transactional foreign exchange risk  
is limited
2  where possible the group attempts to create natural 
hedges against currency exposures through matching 
income and expenses and assets and liabilities in the 
same currency
3  the group where deemed appropriate uses currency 
swaps to maintain the currency profile of its external debt
overall in 2014 the movement in 
exchange rates had a negative 
translation impact and decreased 
reported revenue gross profit and 
operating profit by £997m  
£244m and £114m respectively
during 2014 cross currency swaps 
were taken out on €165m of debt 
securities to retain the currency 
profile of the group’s external debt 
following the issue of a €210m loan 
note which was used to repay 
sterling debt on the group’s 
revolving credit facility
funding – the group relies on 
external funding to support a net 
debt position of £138m at the end 
of 2014 the loss of these 
facilities would cause a liquidity 
issue for the group
the group constantly monitors its cash flow and financial 
headroom development and maintains a 12month rolling 
forecast the group also monitors the relevant financial 
ratios against the covenants in its facilities to ensure the  
risk of breach is being managed
the group also stresses these forecasts with downside 
scenario planning to assess risk and determine potential 
action plans
the board intends to maintain a prudent approach to the 
group’s capital structure by holding the net debt  group 
ebitda leverage ratio below c 15 times
part of the annual planning process is a debt strategy and 
action plan to ensure that the group will have sufficient 
funding in place to achieve its strategic objectives
the group also constantly reviews and manages the 
maturity profile of its external funding
during 2014 the group raised an 
additional £164m by issuing €210m 
of debt securities these securities 
consisted of €165m of threeyear 
notes and €45m of fiveyear notes 
the issue also helped to improve the 
overall maturity profile of the group’s 
debt facilities
together with the group’s banking 
facility of £320m committed until 
september 2017  it has £484m of 
available debt financing
net debt  ebitda ratio at 31 
december 2014 of 06 times there is 
significant headroom on each of the 
covenant ratios
during 2014 the group was accorded 
a for longterm debt and a1 for 
shortterm debt by an independent 
credit rating agency which makes 
additional sources of financing 
potentially available
interest rates – operating in a  
net debt position an increase in 
interest rates would increase 
finance costs 
the group constantly monitors its interest rate exposure  
as part of its monthly treasury review
as part of the group’s balance sheet management it 
utilises interest rate swaps  
during 2014 to take advantage of 
the low interest rate environment 
and to provide certainty of financing 
costs and cash flows over the 
medium term the group has taken 
out swaps to convert a substantial 
proportion of its debt from floating to 
fixed rates strategic report governance financial statements
 wwwreguscom 23
risk management continued
risk mitigation progress in 2014
operational
loss of critical systems – the 
group’s systems and applications 
are housed in a central data 
centre should the data centre  
be impacted as a result of 
circumstances outside the 
group’s control there could be an 
adverse impact on the group’s 
operations and therefore its 
financial results
regus manages this risk through
1 business continuity plans 
2  a detailed service agreement with our external data 
centre provider which incorporates appropriate backup 
procedures and controls
3  ensuring appropriate business interruption insurance  
is in place
we undertake regular testing of 
business continuity procedures  
to ensure that they are adequate  
and appropriate
fraud – landlord and supplier 
and procurement related fraud
regus manages this risk through
1  a rigorous investment approval process to review the 
proposed deal structure against local market conditions 
and alternatives 
2  centralised procurement contracts with suppliers for key 
services and products 
3 standardised processes to manage and monitor spend
4  strong governance framework and policies on gifts and 
hospitality business conduct and bribery and 
corruption
5 regular reviews to monitor effectiveness of controls
growth
ensuring demand is there to 
support our growth – regus has 
undertaken significant growth to 
develop local and national 
networks adding capacity carries 
the risk of creating overcapacity 
failure to fill new centres would 
create a negative impact on  
the group’s profitability and  
cash generation 
regus mitigates this risk by
1  each investment or acquisition proposal is reviewed and 
approved by the investment committee 
2  the monthly business review process monitors new 
centre development against the investment case to 
ensure that the anticipated returns are being generated
3  as part of the annual planning process a growth plan is 
agreed for each country which clearly sets out the 
annual growth objectives
on aggregate our new centres 
continue to perform in line with 
management expectations and are 
delivering attractive returns
human resources
ability to recruit at the right level 
our ability to increase our 
management capacity and 
capabilities through the hiring of 
experienced professionals not 
only supports our ability to 
execute our growth strategy but 
also enables us to improve 
succession planning throughout 
the group
mitigating actions include
1  succession planning discussions are an integral part of 
our business planning and review process
2  part of the annual planning process is the human 
resources plan and performance against this plan is 
reviewed through the year
3  regular external and internal evaluation of the 
performance of the board
the strengthening of our senior 
management team and country 
management teams has been an 
ongoing activity over the last year 
this investment in people is 
delivering a return reflected in the 
reduction of overheads as a 
percentage of revenue and the 
strong financial performance of the 
group more generally
during 2014 we also increased the 
size and diversity of our board with 
the appointment of nina henderson 
training and employee 
engagement – as a service  
based business the strength and 
capabilities of our increasingly 
geographically diverse team are 
critical to achieving our  
strategic objectives
one of the key items in the human resources plan is the 
global induction  training plan which sets out the key 
objectives for the forthcoming year performance against 
these objectives is reviewed through the year
our employee survey also provides insight into employee 
issues which is then used to improve the plan
during 2014 we successfully 
recruited and trained approximately 
3500 employees many through the 
regus online learning academy in 
2014 there were over 283000 
training modules completed 24 regus plc annual report and accounts 2014
corporate responsibility
as a business that works across more than 2200 locations we have a 
clear responsibility to make a strong and positive contribution for the 
local communities of which we are a part 
we specifically look to work with organisations 
focused on health education and skills 
development particularly as they relate to 
entrepreneurship and business creation 
at the same time there is a clear business case 
for such local engagement given our position 
within the local economy – for example with 
recruitment and purchasing this helps improve 
the local business environment encouraging 
others to come to the area some of which may 
decide to use regus the deeper our engagement 
across multiple levels the greater this effect
we strive to build relationships with all of our 
stakeholders – team members customers 
shareholders property brokers landlords 
suppliers and the local communities we are  
a part of – encouraging each stakeholder to 
consider the needs of others and involve 
themselves in the programmes that are in place
all of our community and charitable activities 
take into account the international context with 
an understanding that cultural diversity 
represents varying perceptions and needs 
across the globe our activities are tailored to 
reflect this diverse environment and ensure that 
they are culturally socially politically and 
economically adequate and do not negatively 
impact the company or community in the area
community
regus team members have enthusiastically 
supported local charities through fundraising 
volunteering donations of gifts inkind 
networking events mentoring and work 
experience support and awareness raising 
initiatives in total more than £150000 was raised 
and used to support 132 projects for 100 charities 
this is a significant increase on our activity in 2013 
further detail is provided in the table below
2014 2013
countries with 
community 
engagement 
activity
38 20
projects 132 54
charities 
supported
100 78
donations made £155328 £80500
supported by the business and together with our 
stakeholders they have achieved great things
environment
we help our customers control both their costs 
and carbon emissions through more effective use 
of space and reducing the need for travel by 
working closer to home we are also committed 
to minimise our own impact on the environment 
we are aware that as our business continues to 
grow with the opening and acquisition of more 
centres our related environmental impact will 
increase this growth will inevitably generate 
more carbon emissions and carbon charges 
which we have to manage and report under the 
crc energy efficiency scheme in the uk our 
efforts in reducing our carbon emissions continue 
and we are pleased to report a negligible increase 
067 from last year in total carbon emissions 
from our increased building portfolio the 
government’s crc charges for the coming year 
are increasing by some 36 as the cost of carbon 
allowances increase from £12 per tonne to £1640 
per tonne with our continued expansion we will 
be undertaking a careful review of our portfolio to 
try and ensure our carbon charges and related 
energy costs are as low as possible
in 2009 through our energy and carbon policy 
we set out to achieve a 50 reduction in our co
2
 
emissions in the uk by 2020 based on our 2007 
base year excellent progress was being made 
nonetheless our business is changing and 
expanding and so we will review this target 
carefully in 2015 to ensure its appropriateness 
and if necessary revise it accordingly
for the last four years we have been voluntary 
participants of the carbon disclosure project 
we are pleased to report that for the current year 
2014 we achieved our highest score to date 
with an 86 disclosure score and performance 
band b rating 
as a global organisation we work to spread 
environmental best practices across our 
network in addition to projects that have 
reduced paper usage and target increased 
recycling our teams are continuing to work hard 
at implementing our carbon reducing policies 
and improving the energy efficiency of each 
centre through our ongoing maintenance 
programme many small but related carbon 
saving projects are undertaken for example 
upgrading of controls changing to more 
efficient low energy lighting automating 
lighting systems by adding presence detection 
to the switching and upgrading to more 
efficient chillers and pumps this ongoing 
strategy of carefully selecting efficient 
equipment is helping to reduce our 
environmental impact further strategic report governance financial statements
christmas boxes –  
united kingdom
for the second year in a row our uk 
business transformed its 300 locations into 
collection points for operation christmas 
child run by samaritan’s purse the charity 
encourages people to fill a shoebox with 
gifts for needy and vulnerable children 
around the world our teams customers 
and local communities responded 
magnificently and more than 2500 boxes 
were collected thanks to them many 
thousands of children who otherwise 
wouldn’t have received any presents this 
christmas knew they weren’t forgotten
roten nasen – austria
roten nasen is a charity which brings joy 
to the lives of those sick in hospital by 
sending in “clown doctors” our business 
in austria sponsored the 2014 event and 
several colleagues and their clients took 
part in a fun run dressed in clown noses 
and held stalls with activities for children
susan g komen – racing for the cure 
– us  canada
for the fifth year running the regus life savers team 
participated in the ‘race for the cure’ to raise awareness and 
funds for susan g komen the charity strives to end breast 
cancer in the us 75 of funds raised for this charity support 
vital breast health services with the remaining 25 being put 
towards supporting national research to find a cure over the 
last four years the team has raised more than us175000
sightsavers –  
mea – kenya pakistan 
senegal tanzania 
uganda zambia
regus centre teams actively fundraised in 
support of the local sightsavers branch 
which works to combat sight loss in their 
country their enthusiastic support 
included holding bake sales football 
match screenings and incentre activities 
in addition each centre held a charitable 
networking event inviting their clients to 
meet the charity programme directors to 
hear more about the amazing life saving 
work that they do as a result of our 
combined efforts 834 families will be 
protected from river blindness for a 
whole year 
 wwwreguscom 25
flood relief – indonesia
in january heavy rains brought flooding to many areas of 
jakarta indonesia and the surrounding cities more than 
38000 people were evacuated from their homes suffering 
from a lack of shelter food clean drinking water and other 
essential needs the eight centre teams in the local area 
organised a collection of these necessary items in their centres 
for the victims together with the collections regus volunteers 
joined forces with the international federation of the red cross 
and red crescent societies to distribute the donations 
throughout east jakarta one of the worst affected areas  26 regus plc annual report and accounts 2014
board of directors
board balance  
and diversity
the role of the board is to 
provide entrepreneurial 
leadership and to review the 
overall strategic development 
of the group
name
douglas sutherland mark dixon dominique yates lance browne
name
elmar heggen nina henderson florence pierre alex sulkowski
role
chairman chief executive officer chief financial officer senior independent  
nonexecutive director
role
independent nonexecutive 
director
independent nonexecutive 
director
independent nonexecutive 
director
independent nonexecutive 
director
appointment
18 may 2010 founder 1 september 2011 27 august 2008
appointment
1 june 2010 20 may 2014 21 may 2013 1 june 2010
experience
douglas was chief financial 
officer of skype during its 
acquisition by ebay and was 
also chief financial officer 
at securewave during its 
acquisition by patchlink
prior to this douglas was an 
arthur andersen partner with 
international management 
responsibilities he has 
served as a director of 
companies in multiple 
jurisdictions and was the 
founding chairman of the 
american chamber of 
commerce in luxembourg
chief executive officer  
and founder mark dixon  
is one of europe’s best 
known entrepreneurs since 
founding regus in brussels 
belgium in 1989 he has 
achieved a formidable 
reputation for leadership 
and innovation prior to 
regus he established 
businesses in the retail and 
wholesale food industry a 
recipient of several awards 
for enterprise mark has 
revolutionised the way 
business approaches its 
property needs with his 
vision of the future of work
dominique previously served 
as chief financial officer at 
both lm windpower the 
netherlandsheadquartered 
renewable energy company 
and symrise ag the 
mdaxlisted speciality 
chemicals company he also 
held senior positions at 
imperial tobacco group plc 
including group financial 
controller general manager 
of france switzerland  
italy and malta and group 
business development 
director he is a qualified 
chartered accountant
lance was previously ceo 
then chairman of standard 
chartered bank china ltd 
nonexecutive director of 
imi plc senior advisor to the 
city of london chairman of 
china goldmines plc and 
director of business 
development at powergen 
international hk
experience
elmar has extensive 
management experience 
elmar began his career at 
the felix schoeller group 
becoming vice president  
 general manager of felix 
schoeller digital imaging  
in the uk in 1999
during her thirty year career 
with bestfoods and its 
predecessor company cpc 
international nina has held 
a number of international 
and north american general 
management and executive 
marketing positions 
including vice president  
of bestfoods and president 
of bestfoods grocery she 
has also served as a director 
of numerous companies 
including axa financial inc 
royal dutch shell plc del 
monte food company and 
pactiv corporation
florence has over 30 years 
of international corporate 
finance practice holding 
senior positions at bnp  
financière rothschild 
degroof corporate finance 
3i infrastructure plc and  
her own ma advisory 
boutique florence has an 
international perspective 
having worked in chicago 
new york paris and 
brussels she has also 
taught economics and 
finance published a number 
of books and articles on 
valuation and has been a 
member of several french 
entrepreneurship and 
innovation committees
alex has over 30 years of 
experience in international 
finance structures private 
equity tax advice and real 
estate he is a founding 
member of taxand the 
largest global network of 
independent tax advisors 
prior to this alex enjoyed a 
career with arthur andersen 
responsible for the belgium 
and luxembourg tax 
practices prior to joining 
ernst and young in 2002 as 
the partner responsible for 
the luxembourg tax practice 
and then serving as the 
managing partner of atoz 
tax advisors from 2004 
through 2009
external 
appointments
douglas is currently also a 
director of median gruppe 
sà rl
lance is vice chairman of 
standard chartered bank 
china ltd chairman of 
travelex china and a  
ws atkins international 
advisory board member
external 
appointments
chief financial officer and 
head of the corporate centre 
at rtl group the leading 
european entertainment 
network he is also a board 
member of atresmedia 
spain and metropole 
television france
nina is currently a director 
of cno financial group  
and walter energy inc  
she is managing partner  
of henderson advisory  
a director of the visiting 
nurse service of new york 
and the foreign policy 
association and a trustee 
of drexel university
florence is a director  
at esl network and  
also shares her time 
between directorships 
consulting and venture 
investments in companies 
providing innovative and 
internet services
he is currently the managing 
director of third millennium 
investments sa
board gender diversity
2
6
female
male strategic report governance financial statements
 wwwreguscom 27
board of directors
board balance  
and diversity
name
douglas sutherland mark dixon dominique yates lance browne
name
elmar heggen nina henderson florence pierre alex sulkowski
role
chairman chief executive officer chief financial officer senior independent  
nonexecutive director
role
independent nonexecutive 
director
independent nonexecutive 
director
independent nonexecutive 
director
independent nonexecutive 
director
appointment
18 may 2010 founder 1 september 2011 27 august 2008
appointment
1 june 2010 20 may 2014 21 may 2013 1 june 2010
experience
douglas was chief financial 
officer of skype during its 
acquisition by ebay and was 
also chief financial officer 
at securewave during its 
acquisition by patchlink
prior to this douglas was an 
arthur andersen partner with 
international management 
responsibilities he has 
served as a director of 
companies in multiple 
jurisdictions and was the 
founding chairman of the 
american chamber of 
commerce in luxembourg
chief executive officer  
and founder mark dixon  
is one of europe’s best 
known entrepreneurs since 
founding regus in brussels 
belgium in 1989 he has 
achieved a formidable 
reputation for leadership 
and innovation prior to 
regus he established 
businesses in the retail and 
wholesale food industry a 
recipient of several awards 
for enterprise mark has 
revolutionised the way 
business approaches its 
property needs with his 
vision of the future of work
dominique previously served 
as chief financial officer at 
both lm windpower the 
netherlandsheadquartered 
renewable energy company 
and symrise ag the 
mdaxlisted speciality 
chemicals company he also 
held senior positions at 
imperial tobacco group plc 
including group financial 
controller general manager 
of france switzerland  
italy and malta and group 
business development 
director he is a qualified 
chartered accountant
lance was previously ceo 
then chairman of standard 
chartered bank china ltd 
nonexecutive director of 
imi plc senior advisor to the 
city of london chairman of 
china goldmines plc and 
director of business 
development at powergen 
international hk
experience
elmar has extensive 
management experience 
elmar began his career at 
the felix schoeller group 
becoming vice president  
 general manager of felix 
schoeller digital imaging  
in the uk in 1999
during her thirty year career 
with bestfoods and its 
predecessor company cpc 
international nina has held 
a number of international 
and north american general 
management and executive 
marketing positions 
including vice president  
of bestfoods and president 
of bestfoods grocery she 
has also served as a director 
of numerous companies 
including axa financial inc 
royal dutch shell plc del 
monte food company and 
pactiv corporation
florence has over 30 years 
of international corporate 
finance practice holding 
senior positions at bnp  
financière rothschild 
degroof corporate finance 
3i infrastructure plc and  
her own ma advisory 
boutique florence has an 
international perspective 
having worked in chicago 
new york paris and 
brussels she has also 
taught economics and 
finance published a number 
of books and articles on 
valuation and has been a 
member of several french 
entrepreneurship and 
innovation committees
alex has over 30 years of 
experience in international 
finance structures private 
equity tax advice and real 
estate he is a founding 
member of taxand the 
largest global network of 
independent tax advisors 
prior to this alex enjoyed a 
career with arthur andersen 
responsible for the belgium 
and luxembourg tax 
practices prior to joining 
ernst and young in 2002 as 
the partner responsible for 
the luxembourg tax practice 
and then serving as the 
managing partner of atoz 
tax advisors from 2004 
through 2009
external 
appointments
douglas is currently also a 
director of median gruppe 
sà rl
lance is vice chairman of 
standard chartered bank 
china ltd chairman of 
travelex china and a  
ws atkins international 
advisory board member
external 
appointments
chief financial officer and 
head of the corporate centre 
at rtl group the leading 
european entertainment 
network he is also a board 
member of atresmedia 
spain and metropole 
television france
nina is currently a director 
of cno financial group  
and walter energy inc  
she is managing partner  
of henderson advisory  
a director of the visiting 
nurse service of new york 
and the foreign policy 
association and a trustee 
of drexel university
florence is a director  
at esl network and  
also shares her time 
between directorships 
consulting and venture 
investments in companies 
providing innovative and 
internet services
he is currently the managing 
director of third millennium 
investments sa
balance of nonexecutive and 
executive directors 
1
2
5
chairman
executive
nonexecutive
length of tenure of nonexecutive
directors 
2 2
2
69 years
36 years
03 years 28 regus plc annual report and accounts 2014
chairman’s introduction corporate governance
as a board we regularly discuss and  
review our
• performance and progress
• major risks and their mitigation
• behaviours
• people and how we can create a high 
performing team
• future development and succession
• customers
• shareholders
these all reflect the considerations for 
directors as referenced in the companies 
act 2006 and which our directors know 
they are trusted to consider on behalf  
of all stakeholders
governance framework
we hope you can see that governance  
at regus is taken very seriously a critical 
element of our board environment it 
enables us to test whether we do the right 
things in the right way with the right 
safeguards checks and balances and 
whether the right considerations underpin 
every decision we take as such our 
governance framework is reviewed  
every year and sets out the roles 
accountabilities and expectations for  
our directors and our structures 
in this section
28 corporate governance
34 committee reports
38 remuneration report
46 directors’ report
48 directors’ statements
we also trust that you will find this report 
to be fair balanced and understandable  
it is a reflection of how we do business and 
how the board has served its stakeholders
changes to corporate reporting 
the board continues to keep abreast of 
changes to company reporting regulations
this year has seen the culmination of 
several years of policy development with 
the finalisation of legislation affecting the 
structure and contents of the annual 
report the new strategic report on pages 
1 to 25 includes amongst other matters 
the group’s strategy progress and 
performance for the year changes to 
remuneration reporting in particular are 
significant and these are fully covered in 
the directors’ remuneration report on 
pages 38 to 45
structure of the governance report
in the governance report we have provided 
an overview of how the board operated 
during the year focusing specifically on 
the board’s activities during 2014 a 
separate section of the governance report 
on page 33 provides a detailed description 
of how the company has complied with the 
principles set out in the code we hope 
that this new layout will assist readers to 
navigate this section of the annual report 
with greater ease 
monitoring risk
in view of our longterm ambitions the 
significant investments that have been 
made across the business and increasing 
complexity as we grow the audit 
committee has played a substantial role  
in ensuring appropriate governance and 
challenge around our risk and assurance 
processes this is covered in further  
detail on pages 20 to 23 and 35 to 37
we have built a committed challenging 
board there is much to do and we can 
always do things better so it is essential 
we are open to ideas which help us 
improve our annual board evaluation 
plays a key role in highlighting those areas 
where we want to do better and these 
form part of the action plan for this year 
there were no reportable matters arising 
from this year’s review and we plan an 
external board evaluation during 2015
corporate responsibility
the corporate responsibility activities  
of the group including community 
projects and environmental impact 
initiatives are overseen at the board  
level by the chairman
douglas sutherland
chairman
“ this has been another 
strong year for the group 
where we have achieved  
our financial and growth 
aspirations
  the board plays a full and 
active role in ensuring that 
the management team is 
focussed on delivering our 
strategy and achieving the 
returns expected from our 
shareholders”
douglas sutherland
chairman strategic report governance financial statements
 wwwreguscom 29
although the company is not obliged to 
adhere to the revised code the board 
prides itself on its commitment to high 
standards of corporate governance and 
the company has therefore applied the 
principles of the revised code as far as  
it is applicable the revised code is 
available at wwwfrcgovuk and this 
report describes how the board has 
applied its principles
the board
during the year to 31 december 2014 the 
board of directors was made up of eight 
members comprising the chairman two 
executive directors and five nonexecutive 
directors biographical details of the 
directors are set out on pages 26 and 27
the board is mindful of the benefits of 
strength and diversity on the board 
our aim is to have a board which is 
reflective of the broad range of skills 
backgrounds and experience necessary to 
properly serve our shareholders we have 
pursued this objective by engaging board 
members who have had broad executive 
responsibilities and bring very different 
and complementary personal experiences 
and approaches to matters including  
the evaluation of opportunities and 
management of risks our board members 
represent five different nationalities and 
seven countries of residence along with 
their international operational experience 
they also bring a depth of working 
knowledge covering multiple industries 
business models corporate cultures 
organisational models functional areas 
and business issues during the year we 
were pleased to add nina henderson to 
the board as a nonexecutive director 
contributing to the skillset and diversity  
of the board
the nomination committee’s decisions are 
based on merit while reflecting our intent 
to continue to increase diversity over time
the board considers that its current 
balance ensures that no individual or group 
dominates its decision making process
role of the board
the primary role of the board is to  
provide leadership and to review the 
overall strategic development of the 
group the board approves the corporate 
plan and the annual budget and reviews 
performance through monthly reports and 
at every meeting capable management 
and relevant technical expertise in the 
business are critical to the implementation 
of the strategy 
individuals with strategic responsibilities 
are invited to present to and discuss with 
the board on a periodic basis
through the audit committee the 
directors ensure the integrity of financial 
information and the effectiveness of 
financial controls and the internal control 
and risk management system the  
board has delegated authority to the 
remuneration committee to set the 
remuneration policy for directors and 
senior management 
the nomination committee recommends 
the appointment of board directors and 
has responsibility for succession planning 
at board level the various board 
committees the ‘committees’ have 
authority to make decisions in their  
areas of expertise
frequency of meetings
there were eight main board meetings 
during 2014 all serving directors attended  
each meeting
the number of meetings of the committees 
and individual attendance by the directors 
are shown on the following page nina 
henderson having joined the board and its 
committees on 20 may 2014
matters reserved for the board
the board has a formal schedule of 
matters reserved for its decision to ensure 
that no one individual has unfettered 
powers of decision these include
• approval of regulatory announcements 
including the interim and annual 
financial statements
• terms of reference and membership of 
the board and its committees
• changes to the group’s capital structure
• changes to the group’s management 
and control structure
• capital expenditure in excess of £5m 
and
• material contracts annual value in 
excess of £5m
minutes are taken of all board discussions 
and decisions and all directors are 
encouraged to request inclusion in the 
board minutes of any unresolved concerns 
that they may have
board committees
the board has delegated certain of its 
governance responsibilities to the audit 
nomination and remuneration committees
the company secretary acts as secretary 
to all of the board committees and 
minutes of meetings are circulated to  
all board members
the terms of reference of the committees 
have been documented and approved  
by the board and are available on the 
company’s website wwwreguscom a 
brief summary of the members activities 
and terms of reference of the committees 
is provided on the following page
chairman’s introduction corporate governance
the financial reporting 
council updated the uk 
corporate governance code 
the ‘revised code’ and it  
is effective for accounting 
periods beginning on or  
after 1 october 2014 30 regus plc annual report and accounts 2014
corporate governance continued
group structure
as a jerseyincorporated company having 
its place of central administration head 
office in luxembourg and being tax 
resident in luxembourg the company is 
required to comply with both jersey law 
and luxembourg law where applicable in 
addition the company’s ordinary shares 
are listed on the official list of the uk 
listing authority and admitted to trading 
on the main market of the london 
stock exchange
it is possible that conflicts may arise 
between the obligations of the company 
under the laws of each of these 
jurisdictions or between the applicable 
laws and the listing rules if an 
irreconcilable conflict were to occur then 
the company may not be able to maintain 
its status as a company tax resident  
in luxembourg
the group manages the risk that a 
significant tax liability could arise by taking 
appropriate advice both in carrying out 
group reorganisations and on an ongoing 
basis in addition the group believes that 
under current laws and regulations the risk 
of irreconcilable conflicts between current 
laws and regulations impacting regus plc 
is also low
all shareholders are paid dividends 
directly from regus plc sa ‘plc’ all 
dividend payments are made without 
deduction of luxembourg withholding tax 
regardless of the residence of the 
recipient
in general terms uk resident shareholders 
receiving dividends from plc should be 
taxed in the same way as if they had 
received a dividend from a uk company
tax outcomes do however depend on the 
specific circumstances of shareholders 
and any shareholder in doubt about their 
tax position including in particular uk 
resident but nonukdomiciled individuals 
roles of board members
in line with good corporate governance 
principles there is a clear division of 
responsibilities between the chairman 
and the chief executive
douglas sutherland mark dixon nonexecutive directors tim regan
chairman chief executive the nonexecutive directors each bring 
their own senior level of experience and 
objectivity to the board the independent 
counsel brought to the group by the 
nonexecutive directors enhances the 
overall decision making of the board 
nonexecutive directors are appointed  
for an initial threeyear term and are 
subject to election by shareholders at  
each annual general meeting ‘agm’  
after their appointment
company secretary
douglas sutherland is responsible for 
leadership of the board setting its agenda 
and monitoring its effectiveness 
he ensures effective communication with 
shareholders and that the board is aware 
of the views of major shareholders he 
facilitates both the contribution of the 
nonexecutive directors and constructive 
relations between the executive directors 
and nonexecutive directors
mark dixon is responsible for formulating 
strategy and for its delivery once agreed  
by the board he creates a framework  
of strategy values organisation and 
objectives to ensure the successful delivery 
of key targets and allocates decision 
making and responsibilities accordingly
the company secretary tim regan  
is responsible for advising the board 
through the chairman on all governance 
matters and for ensuring that appropriate 
minutes are taken of all board meetings 
and discussions the appointment and 
removal of the company secretary is a 
matter reserved for the board
members
frequency of 
meetings
elmar heggen chairman 66
lance browne 66
nina henderson 46
florence pierre 66
alex sulkowski 66
 nina henderson joined the board on 20 may 2014
details of the audit committee and its 
activities during the year are set out in 
the audit committee report on pages  
35 to 37 
members
frequency of 
meetings
nina henderson chairman 46
lance browne 66
elmar heggen  66
florence pierre 66
alex sulkowski 66
 nina henderson joined the board on 20 may 2014
details of the remuneration committee 
and its activities during the year are set 
out in the remuneration report on 
pages 38 to 45
members
frequency of 
meetings
lance browne chairman 44
elmar heggen  44
nina henderson 34
florence pierre 44
alex sulkowski 44
douglas sutherland 44
 nina henderson joined the board on 20 may 2014
details of the nomination committee 
and its activities during the year are set 
out in the nomination committee report 
on page 34
audit committee remuneration 
committee
nomination committee
board committees strategic report governance financial statements
 wwwreguscom 31
corporate governance continued
who have elected to be taxed on a 
remittance basis should consult their  
own professional advisor
centrally managed applications  
and systems 
all of the group’s systems and 
applications are housed in a central  
data centre should the data centre be 
impacted as a result of circumstances 
outside the group’s control there could  
be an adverse impact on the group’s 
operations and therefore its financial 
results this risk is managed through a 
detailed service arrangement with our 
external data centre provider which 
incorporates appropriate backup 
procedures and controls
strategy
the board conducts regular reviews of the 
group’s strategic direction country and 
regional strategic objectives plans and 
performance targets for 2014 have been 
set by the executive directors and are 
regularly reviewed by the board in the 
context of the group’s overall objectives
control processes
the company has had procedures in place 
throughout the year and up to 3 march 
2015 the date of approval of this annual 
report which accord with the revised 
internal control guidance for directors in 
the code these include the following
• there are comprehensive reviews  
every six months of group and regional 
financial performance business 
development opportunities group 
infrastructure and general group 
management issues the results of these 
reviews are presented to the board
• formal country level business reviews 
are performed monthly by regional and 
group management covering 
performance and management issues 
with country management significant 
matters arising from these reviews are 
presented to the board
• the annual budget process is driven 
from senior management meetings 
budgets are prepared at a detailed  
level by business centre and rollup  
at country and regional level the 
executive directors review regional 
budgets to ensure consistency with 
regional strategic objectives and the 
final budget is reviewed and approved 
by the board the approved budget 
forms the basis of business 
management throughout the year
• operational reports and financial 
reports are prepared and distributed to 
the board on a monthly basis actual 
results are reviewed against budget and 
forecast and explanations are received 
for all material movements
• key policies and control procedures 
including finance operations and 
health and safety are documented in 
manuals having groupwide application 
these are available to all staff via the 
group’s intranet system
• the board has formal procedures in 
place for the review and approval of 
investment and acquisition projects  
the group investment committee 
comprising the executive directors 
reviews all investments prior to  
approval by the board where required 
additionally the form and content of 
routine investment proposals are 
standardised to facilitate the review 
process the group has clearly 
delegated authority limits with regard  
to the approval of transactions
• numerous reports are generated  
from the group’s sales and operating 
systems on a daily weekly and monthly 
basis to provide management at all 
levels with performance data for their 
area of responsibility which helps them 
to focus on operational issues that may 
require their input
information and communications 
processes
the senior management team is integrally 
involved in the business and to this extent 
regularly discuss and address issues and 
opportunities with regional and functional 
teams formal business review meetings 
are held with the regional teams and 
functional heads on a monthly basis
regular staff communications include 
general information on the business  
from senior management as well as 
operational guidance on changes in 
policies and procedures
sales staff and operational management 
periodically attend regional sales or 
management conferences at which 
information on operational issues is 
shared delegates present the key 
messages to employees who did not 
attend the event
monitoring effectiveness
the following key mechanisms were 
available to the board at various times 
during the year in the conduct of its review 
of internal controls
• review of the group’s monthly 
management accounts which contain 
detailed analysis of financial performance 
for the group and each of the group’s 
geographic reporting segments
• an ongoing process of review through 
board meetings senior management 
meetings and divisional reviews as well 
as other management meetings for the 
formal identification of significant 
operational risks and mitigating  
control processes
• delivery of a centrallycoordinated 
assurance programme by the business 
assurance department that includes key 
business risk areas
• reporting the findings and 
recommendations of each review to 
management and the audit committee 
roles of board members
in line with good corporate governance 
principles there is a clear division of 
responsibilities between the chairman 
and the chief executive
douglas sutherland mark dixon nonexecutive directors tim regan
chairman chief executive the nonexecutive directors each bring 
their own senior level of experience and 
objectivity to the board the independent 
counsel brought to the group by the 
nonexecutive directors enhances the 
overall decision making of the board 
nonexecutive directors are appointed  
for an initial threeyear term and are 
subject to election by shareholders at  
each annual general meeting ‘agm’  
after their appointment
company secretary
douglas sutherland is responsible for 
leadership of the board setting its agenda 
and monitoring its effectiveness 
he ensures effective communication with 
shareholders and that the board is aware 
of the views of major shareholders he 
facilitates both the contribution of the 
nonexecutive directors and constructive 
relations between the executive directors 
and nonexecutive directors
mark dixon is responsible for formulating 
strategy and for its delivery once agreed  
by the board he creates a framework  
of strategy values organisation and 
objectives to ensure the successful delivery 
of key targets and allocates decision 
making and responsibilities accordingly
the company secretary tim regan  
is responsible for advising the board 
through the chairman on all governance 
matters and for ensuring that appropriate 
minutes are taken of all board meetings 
and discussions the appointment and 
removal of the company secretary is a 
matter reserved for the board 32 regus plc annual report and accounts 2014
corporate governance continued
to support the board in its role of 
ensuring a sound control environment
• monthly reporting on the development 
of the profitability of new centres to 
allow appraisal of the effectiveness  
of investment activity and
• annual internal control selfassessment 
and management certification exercise 
covering the effectiveness of financial 
and operational controls this is based 
on a comprehensive internal control 
questionnaire collated and reviewed  
by internal audit results and any 
necessary mitigating action plans are 
presented to senior management and 
the board
succession
our efforts to increase our management 
capacity and capabilities through 
continuing development of our people 
supplemented by the hiring of experienced 
professionals not only supports our 
ability to execute our growth strategy but 
also enables us to address succession in  
a more robust way throughout the group 
succession planning discussions are an 
integral part of our business planning and 
review processes 
in view of the future development of the 
group and our objective to continue to 
enhance diversity and succession planning 
for board roles the nomination committee 
maintains an ongoing programme of 
engagement with highly qualified potential 
nonexecutive directors of varied 
backgrounds and gender 
training and resources
appropriate training is made available  
for all new directors to assist them in the 
discharge of their responsibilities training 
is provided on an ongoing basis to meet 
particular needs with the emphasis on 
governance and accounting developments
during the year the company secretary 
tim regan provided updates to the board 
on relevant governance matters whilst the 
audit committee regularly considers new 
accounting developments through 
presentations from management internal 
audit and the external auditors the board 
programme includes presentations from 
management in addition to the executive 
directors which together with site visits 
increase the nonexecutive directors’ 
understanding of the business and sector
all directors have access to the advice  
and services of the company secretary 
who is responsible for ensuring that board 
procedures corporate governance and 
regulatory compliance are followed and 
complied with should a director request 
independent professional advice to carry 
out his duties such advice is available  
to him at the company’s expense
directors’ and officers’ insurance
the group’s insurance programme is 
reviewed annually and appropriate 
insurance cover is obtained to protect the 
directors and senior management in the 
event of a claim being brought against any 
of them in their capacity as directors and 
officers of the company
dialogue with shareholders
the company reports formally to 
shareholders twice a year with the  
half year results typically announced in 
august and the preliminary final results 
announced normally in march there  
are programmes for the chief executive 
and chief financial officer to give 
presentations of these results to the 
company’s institutional investors 
analysts and media in london and  
other key locations
the chief executive and chief financial 
officer maintain a close dialogue with 
institutional investors on the company’s 
performance governance plans and 
objectives these meetings also serve to 
develop an ongoing understanding of the 
views and any concerns of the company’s 
major shareholders
the nonexecutive directors are given 
regular updates as to the views of the 
institutional shareholders and the 
chairman is available and meets with 
these shareholders on request
the principal communication with  
private shareholders is through the  
annual report the half year results  
and the agm
control environment
high standards of behaviour are  
demanded from staff at all levels  
in the group the following procedures  
are in place to support this
a clearly defined 
organisation structure 
with established 
responsibilities
an induction process 
to educate new team 
members on the 
standards required 
from them in their role 
including business 
ethics and compliance 
regulations and 
internal policies
provision to all team 
members of a copy of 
the ‘team member 
handbook’ which 
contains detailed 
guidance on employee 
policies and the 
standards of behaviour 
required of staff
“ the group manages the  
risk that a significant tax 
liability could arise by taking 
appropriate advice both  
in carrying out the group 
reorganisation and on an 
ongoing basis” strategic report governance financial statements
 wwwreguscom 33
• provision e11 – the senior 
independent nonexecutive director 
lance browne does not have regular 
meetings with major external 
shareholders
the board considers it appropriate for  
the chairman to be the main conduit  
with investors rather than the senior 
independent nonexecutive director  
the chairman participates in investor 
meetings and makes himself available for 
questions in person at the time of major 
announcements as well as upon request 
the chairman regularly updates the board 
and particularly the senior independent 
nonexecutive director on the results  
of his meetings and the opinions of 
investors on this basis the board 
considers that the senior independent 
nonexecutive director is able to gain full 
awareness of the issues and concerns  
of major shareholders notwithstanding  
this policy all directors have a standing 
invitation to participate in meetings  
with investors
agreement with controlling 
shareholder
on 23 september 2014 mark dixon 
entered into a relationship agreement 
with the company so as to comply with 
listing rule lr 922a2a which came 
into effect on 16 may 2014 the following 
undertakings were given by mark dixon
• all transactions and relationships  
with any member of the group will be 
conducted on arm’s length terms and  
on a normal commercial basis 
• no action will be taken that would have 
the effect of preventing the company 
from complying with its obligations 
under the listing rules and 
• no resolution will be proposed or 
procured to be proposed which is 
intended to or appears to be intended 
to circumvent the proper application  
of the listing rules
the company confirms that it has 
complied with its obligations under the 
relationship agreement during the 
financial period under review and that so 
far as it is aware all other parties to that 
agreement have complied with it 
the company confirms that there are no 
contracts of significance between mark 
dixon and any member of the group with 
the exception of mark dixon’s service 
agreement as a director of the company 
the terms of which are outlined in the 
remuneration report
corporate governance continued
the company continues to engage the 
services of brunswick as its investor 
relations adviser
agm
the agm each year is held in may in 
luxembourg and is attended other than in 
exceptional circumstances by all members 
of the board in addition to the formal 
business of the meeting there is normally 
a trading update and shareholders are 
invited to ask questions and are also given 
the opportunity to meet the directors 
informally afterwards
notice of the agm together with any 
related documents is required to be mailed 
to shareholders at least 30 clear days 
before the meeting and separate 
resolutions are proposed on each issue
the voting in respect of all resolutions to 
be put to the agm is conducted by means 
of a poll vote
the level of proxy votes cast and the 
balance for and against each resolution 
together with the level of abstentions if 
any are announced to the meeting 
following voting on a poll
financial and other information is made 
available on the company’s website  
wwwreguscom
reelection of the board
as required by the code all directors 
submit themselves for reelection by 
shareholders annually and directors 
appointed during the period since the last 
agm are required to seek election at the 
next agm under the company’s articles  
of association 
nonexecutive directors are also subject to 
the reelection requirements and serve the 
company under letters of appointment 
which have an initial threeyear term
compliance statement
the company has complied with the 
provisions set out in section e of the code 
throughout the year ended 31 december 
2014 with the exception of the following
control environment
high standards of behaviour are  
demanded from staff at all levels  
in the group the following procedures  
are in place to support this
policies and procedure 
manuals and 
guidelines that are 
readily accessible 
through the group’s 
intranet site
operational audit  
and selfcertification 
tools which require 
individual centre 
managers to confirm 
their adherence  
to group policies  
and procedures
board performance 
evaluation
the last external evaluation was 
performed in 2012 and the next external 
evaluation will be performed during 2015
an annual internal evaluation of board 
performance was conducted for 2014  
the results of the 2014 evaluation were 
reviewed and are being addressed in our 
efforts to continuously improve the 
processes and effectiveness of the board
there were no reportable matters 
identified from the evaluations and we 
continue to have full confidence in the 
board’s members and processes
to underpin the 
effectiveness of controls 
it is the group’s policy  
to recruit and develop 
appropriately skilled 
management and staff  
of high calibre and 
integrity and with 
appropriate disciplines 34 regus plc annual report and accounts 2014
board effectiveness performance 
leadership and succession planning  
were covered by our internal board review 
process as well as being discussed by  
the board as a group
summary terms of reference
• board appointment and composition – 
to regularly review the structure size 
and composition of the board and make 
recommendations on the role and 
nomination of directors for appointment 
and reappointment to the board for the 
purpose of ensuring a balanced and 
diverse board in respect of skills 
knowledge and experience
• board committees – to make 
recommendations to the board in 
relation to the suitability of candidates 
for membership of the audit and 
remuneration committees the 
appointment and removal of directors 
are matters reserved for the full board
• board effectiveness – to assess the role 
of the chairman and chief executive and 
make appropriate recommendations to 
the board
• board performance – to assist the 
chairman with the annual performance 
evaluation to assess the performance 
and effectiveness of the overall board 
and individual directors
• leadership – to remain fully informed 
about strategic issues and commercial 
matters affecting the company and to 
keep under review the leadership needs 
of the organisation to enable it to 
compete effectively
lance browne
chairman nomination committee
nomination committee report audit committee report
our board composition
as at the date of this report the board 
comprises eight members the chairman 
douglas sutherland five nonexecutive 
directors and two executive directors
the board considers all the nonexecutive 
directors to be independent
the names of the directors serving as at 
31 december 2014 and their biographical 
details are set out on pages 26 and 27
all directors served throughout the year 
under review except as noted below
• nina henderson – appointed as 
nonexecutive director on 20 may 2014
regus aim to appoint a board with varied 
backgrounds and gender to reflect the 
society in which we operate
members
lance browne chairman
elmar heggen
nina henderson
florence pierre
alex sulkowski
douglas sutherland
length of tenure of nonexecutive 
directors within the committee
69 years
36 years
03 years
2 2
2
dear shareholder
i am pleased to present to you my report 
on the nomination committee
in line with our aim to have a board which 
is reflective of the broad range of skills 
backgrounds and experiences necessary 
to properly serve our shareholders during 
the year the nomination committee 
searched for a new nonexecutive director 
our search resulted in the selection 
recommendation and appointment of  
nina henderson as a nonexecutive to  
the board
the existing nonexecutive directors offer 
themselves for reelection each year as 
further detailed on page 33 biographical 
details of all serving directors can be 
found on pages 26 and 27
“ during 2014 the committee 
continued to review board 
composition seeking  
board candidates whose 
backgrounds and proven 
skills would strengthen the 
board and further support 
and develop the long term 
sustainable success of  
the company”
lance browne
chairman nomination committee strategic report governance financial statements
 wwwreguscom 35
the audit committee has via delegated 
authority from the board the 
responsibility for applying an effective 
system of internal control and compliance 
accurate external financial reporting 
fulfilling its obligations under law the 
revised uk corporate governance code 
the ‘code’ and the financial reporting 
council’s report on internal control 
revised guidance for directors on the 
combined code the ‘frc revised 
guidance’ as well as managing the 
relationship with the company’s external 
auditors the committee therefore acts  
on behalf of the board meaning that the 
matters reviewed and managed by the 
committee remain the responsibility of  
the board as a whole
the committee is comprised entirely  
of nonexecutive directors as detailed  
on page 30 of the corporate  
governance report
all of the members are considered by the 
board to be independent in character and 
judgement and are competent in 
accounting andor auditing furthermore 
and in compliance with the code the 
board regards elmar heggen as the 
committee member possessing recent  
and relevant financial experience
the audit committee met six times during 
the year to 31 december 2014
attendance at those meetings is shown on 
page 30 of the corporate governance 
report at the request of the committee 
chairman the external auditors the 
executive directors the company 
secretary acting as secretary to the 
committee and the business assurance 
director may attend each meeting
the audit committee also routinely meets 
independently without the presence of 
management with the company’s external 
auditors and with the business assurance 
director to informally discuss matters  
of interest
summary terms of reference of the 
committee the full text of which is freely 
available on the company’s website are
• financial reporting – to provide  
support to the board by monitoring  
the integrity of financial reporting and 
ensuring that the published financial 
statements of the group and any  
formal announcements relating to  
the company’s financial performance 
comply fully with the relevant statutes 
and accounting standards
• internal control and risk systems  
– to review the effectiveness of the 
group’s internal controls and risk 
management systems
• internal audit – to monitor and review 
the annual internal audit programme 
ensuring that the internal audit function 
is adequately resourced and free from 
management restrictions and to review 
and monitor responses to the findings 
and recommendations of the  
internal auditors
• external audit – to advise the board  
on the appointment reappointment 
remuneration and removal of the 
external auditors
• employee concerns – to review the 
company’s arrangements under which 
employees may in confidence raise  
any concerns regarding possible 
wrongdoing in financial reporting or 
other matters the audit committee 
ensures that these arrangements  
allow proportionate and independent 
investigation and appropriate  
followup action
nomination committee report audit committee report
members
elmar heggen chairman
lance browne
nina henderson
florence pierre
alex sulkowski
length of tenure of nonexecutive 
directors within the committee
69 years
36 years
03 years
2
2
1
dear shareholder
i am pleased to present to you this year’s 
audit committee report the report sets 
out the significant matters that the 
committee has considered and addressed 
during the year under review whilst  
also detailing the committee’s role in 
monitoring all aspects of financial 
reporting internal controls and risk 
management for the year under review 
there were no reportable issues to bring  
to your attention
“ i am pleased to introduce  
the 2014 audit committee 
report which explains  
the committee’s role in 
monitoring all aspects  
of financial reporting 
internal controls and risk 
management and provides 
an overview of the work 
undertaken by the committee 
over the past year”
elmar heggen
chairman audit committee 36 regus plc annual report and accounts 2014
audit committee report continued
the chairman of the audit committee 
routinely reports to the main board on  
how the committee has discharged its 
responsibilities as well as highlighting 
any concerns that have been raised as  
and when they arise
activities of the audit committee 
during the year
the committee has a number of standing 
agenda items which it considers at each of 
its meetings as well as any other specific 
matters which arise during the year 
during the year amongst other items  
the committee reviewed and discussed
• the control observations from the 
previous year’s group audit cycle
• internal controls and risk management 
as further particularised within  
this report
• the group tax report
• the interim and final dividends
• the integrity of the half year results and 
annual financial statements alongside 
the formal announcements relating to 
them and
• the group audit strategy for the year
risk management
on behalf of the board the audit 
committee oversees and reviews an 
ongoing process for identifying 
evaluating and managing the risks faced 
by the group major business risks and 
their financial implications are appraised 
by the responsible executives as a part of 
the planning process and are endorsed  
by regional management key risks are 
reported to the audit committee which in 
turn ensures that the board is made aware 
of them the appropriateness of controls 
is considered by the executives having 
regard to cost benefit materiality and the 
likelihood of risks crystallising key risks 
and actions to mitigate those risks are 
regularly considered by both the audit 
committee and the board and are 
formally reviewed and approved by  
the board annually
principal risks
there are a number of risks and 
uncertainties which could have an impact 
on the group’s longterm performance 
the group has a risk management 
structure in place designed to identify 
manage and mitigate business risks risk 
assessment and evaluation is an integral 
part of the annual planning process as 
well as the group’s monthly review cycle
the group’s principal risks together with 
an explanation of how the group manages 
these risks are presented on pages 20 to 
23 of this annual report
internal control
the committee has a delegated 
responsibility from the board for the 
company’s system of internal control  
and risk management and for reviewing 
the effectiveness of this system such a 
system is designed to identify evaluate 
and control the significant risks associated 
with the group’s achievement of its 
business objectives with a view to 
safeguarding shareholders’ investments 
and the group’s assets due to the 
limitations that are inherent in any system 
of internal control this system is designed 
to meet the company’s particular needs 
and the risks to which it is exposed and  
is designed to manage rather than 
eliminate risk
accordingly such a system can provide 
reasonable but not absolute assurance 
against material misstatement or loss
in accordance with the frc revised 
guidance the committee confirms that 
there is an ongoing process for 
identifying evaluating and managing  
the significant risks faced by the group
during the year under review the 
committee continued to revisit its risk 
identification and assessment processes 
inviting board members and senior 
management to convene and discuss the 
group’s key risks and mitigating controls
a riskbased approach has been adopted 
in establishing the group’s system of 
internal control and in reviewing its 
effectiveness to identify and manage  
key risks
• a number of groupwide procedures 
policies and standards have  
been established
• a framework for reporting and 
escalating matters of significance  
has been set up
• reviews of the effectiveness of 
management actions in addressing key 
group risks identified by the board have 
been undertaken and
• a system of regular reports from 
management setting out key 
performance and risk indicators has 
been developed
the above process is designed to  
provide assurance by way of cumulative 
assessment and is embedded in 
operational management and  
governance processes
key elements of the group’s system of 
internal control which have operated 
throughout the year under review are  
as follows
• the risk assessments of all significant 
business decisions at the individual 
transaction level and as part of the 
annual business planning process a 
groupwide risk register is developed 
annually whereby all company inherent 
risks are identified and assessed and 
appropriate action plans developed to 
manage the risk per the company’s risk 
appetite the board reviews the group’s 
principal risks register annually and 
management periodically reports on the 
progress against agreed actions to keep 
a close watch on how we are managing 
our key risks
• the annual strategic planning process 
which is designed to ensure consistency 
with the company’s strategic objectives 
the final budget is reviewed and 
approved by the board performance  
is reviewed against objectives at each 
board meeting
• comprehensive monthly business 
review processes under which business 
performance is reviewed on business 
centre area country regional and 
functional levels actual results are 
reviewed against targets explanations 
are received for all material movements 
and recovery plans are agreed  
where appropriate
• the documentation of key policies and 
control procedures including finance 
operations and health and safety 
having groupwide application these 
are available to all staff via the group’s 
intranet system
• formal procedures for the review  
and approval of all investment and 
acquisition projects the group 
investment committee comprising the 
chief executive officer and the chief 
financial officer reviews and approves 
all investments additionally the form 
and content of routine investment 
proposals are standardised to facilitate 
the review process
• the delegation of authority limits with 
regard to the approval of transactions
• the generation of targeted action
oriented reports from the group’s sales 
and operating systems on a daily 
weekly and monthly basis which  
provide management at all levels with 
performance data for their area of 
responsibility and which helps them  
to focus on key issues and manage  
them more effectively
• the delivery of a centrally coordinated 
assurance programme by the internal 
audit department that includes key 
business risk areas the findings and 
recommendations of each review are 
reported to both management and  
the committee
• annual internal control selfassessment 
and management certification exercise 
covering the effectiveness of financial 
and operational controls this is based 
on a comprehensive internal control 
questionnaire collated and reviewed by  strategic report governance financial statements
 wwwreguscom 37
audit committee report continued
internal audit results and any 
necessary mitigating action plans are 
presented to senior management and 
the board
• the maintenance of high standards of 
behaviour which is demanded from staff 
at all levels in the group the following 
procedures are in place to support this
• a clearly defined organisation 
structure with established 
responsibilities
• an induction process to educate  
new team members on the standards 
required from them in their role 
including business ethics and 
compliance regulation and  
internal policies
• the availability of the ‘team member 
handbook’ via the group’s intranet 
which contains the company’s code 
of business conduct detailed 
guidance on employee policies and 
the standards of behaviour required 
of staff
• policies procedure manuals and 
guidelines are readily accessible 
through the group’s intranet site
• operational audit and self
certification tools which require 
individual managers to confirm their 
adherence to group policies and 
procedures and
• a groupwide policy to recruit  
and develop appropriately skilled 
management and staff of high  
calibre and integrity and with 
appropriate disciplines
the committee and the board regard 
responsible corporate behaviour as an 
integral part of the overall governance 
framework and believes that it should  
be fully integrated into management 
structures and systems therefore the  
risk management policies procedures  
and monitoring methods described  
above apply equally to the identification 
evaluation and control of the company’s 
safety ethical and environmental risks  
and opportunities this approach ensures 
that the company has the necessary and 
adequate information to identify and 
assess risks and opportunities affecting 
the company’s longterm value arising 
from its handling of corporate 
responsibility and corporate  
governance matters
the committee has completed its  
annual review of the effectiveness of the 
system of internal control for the year to  
31 december 2014 and is satisfied that it  
is in accordance with the frc revised 
guidance and the code the assessment 
included consideration of the 
effectiveness of the board’s ongoing 
process for identifying evaluating and 
managing the risks facing the group
whistleblowing policy
the company has an externally hosted 
whistleblowing channel ‘ethicspoint’ 
which is available to all employees via 
email and on the company’s intranet  
the aim of the policy is to encourage all 
employees regardless of seniority to 
bring matters that cause them concern  
to the attention of the audit committee
the business assurance director where 
appropriate and in consultation with the 
executive management team decides  
on the appropriate method and level of 
investigation the audit committee is 
notified of all material discourses made 
and receives reports on the results of 
investigations and actions taken on a 
regular basis the audit committee has 
the power to request further information 
conduct its own inquiries or order 
additional action as it sees fit
external auditors
kpmg luxembourg société coopérative 
were the company’s auditors for the year 
ended 31 december 2014 the audit 
committee is responsible for oversight  
of the external auditors including an 
annual assessment of their independence 
and objectivity
during the year the external auditors 
provided the following audit and nonaudit 
related services
audit related kpmg luxembourg société 
coopérative audited the consolidated 
financial statements of the company 
performed control observations throughout 
the group and provided an overview of the 
half year results of the company
nonaudit related kpmg luxembourg 
société coopérative performed buyside 
due diligence work on certain acquisitions 
by the group
it is the company’s policy to use the 
external auditors for nonaudit related 
services only where the use of the external 
auditors will deliver a demonstrable 
benefit to the company as compared to  
the use of other potential providers of the 
services and where it will not impair their 
independence or objectivity all proposals 
for permitted defined nonaudit services  
to use the external auditors must be 
submitted to and authorised by the  
chief financial officer
permitted nonaudit services include 
advice on financial accounting and 
regulatory reporting matters reviews of 
internal accounting and risk management 
controls nonstatutory audits eg 
regarding acquisitions and disposal of 
assets and interests in companies and  
tax compliance and advisory services
prohibited nonaudit services include 
bookkeeping and other accounting 
services actuarial valuation services 
recruitment services in relation to key 
management positions and transaction 
acquisitions mergers and dispositions 
work that includes investment banking 
services preparation of forecasts or 
investment proposals and deal  
execution services
the scope and extent of nonaudit  
related services undertaken by the 
external auditors is monitored by and 
above a threshold of £50000 requires 
prior approval from the committee to 
ensure that the provision of such services 
does not impair their independence  
or objectivity
the breakdown of the fees paid to the 
external auditors during the year to  
31 december 2014 can be found in note 5  
of the notes to the accounts
for the year ending 31 december 2015 the 
audit committee has recommended to the 
board that a resolution to reappoint kpmg 
luxembourg société coopérative as the 
company’s auditors be proposed at the 
annual general meeting
the audit committee notes the ongoing 
dialogue regarding the advantages and 
disadvantages related to the periodic 
rotation of external auditors the audit 
committee has considered the various 
viewpoints expressed in this debate in the 
context of regus given the significant 
level of other changes which are ongoing 
and includes the mix of countries in which 
much of the audit work is conducted the 
rapid growth and evolving structure of the 
group changes in financial organisation 
and personnel ongoing efforts to continue 
to improve audit effectiveness with the 
existing external auditors and other 
factors the audit committee does not 
believe at this time that it is appropriate or 
in the interest of shareholders to rotate 
external auditors primarily for the sake of 
change the audit committee will be 
complying with eu legislation regarding 
auditor independence and rotation the 
audit committee will continue to keep 
under review the independence and 
objectivity of the external auditors the 
effectiveness of the audit process 
legislative developments the rotation of 
the lead audit partner and other matters 
as they monitor the appropriateness of the 
retention of kpmg luxembourg société 
coopérative as the company’s auditors
elmar heggen
chairman audit committee 38 regus plc annual report and accounts 2014
remuneration report
dear shareholder 
as the chairman of the remuneration 
committee i am pleased to present to you 
this year’s report on directors’ remuneration 
this is my first report as the chairman  
of the committee we have focussed  
on enhancing the accessibility and 
transparency of the disclosure this  
year i hope that you find it useful  
and informative
this letter aims to provide a 
comprehensive summary of the overall 
report it sets out the objectives 
principles and key features of the 
executive remuneration framework 
explains the committee’s key decisions in 
respect of 2014 and the approach for 2015 
the remainder of the report is divided  
into the following sections
• key features of the framework this 
section pages 4041 provides a 
summary of our framework and 
enhancements planned for 2015 
• outcomes for 2014 pages 4243  
this describes the implementation  
of our policies in 2014 including the 
“single figure of remuneration” and 
supporting narrative for our bonus  
and longterm outcomes 
• additional disclosures pages 4445 
the final section includes additional 
supporting disclosures 
remuneration objectives and 
principles
as context for considering the report set 
out below are the remuneration objectives 
and principles which have consistently 
underpinned our remuneration framework 
for a number of years
• our remuneration packages must 
attract retain and motivate people of 
the highest calibre and experience 
needed to shape and execute the 
company’s strategy and to deliver 
shareholder value total compensation 
opportunities should be commensurate 
with comparable packages available 
with similar companies operating in 
similar markets
• a significant proportion of reward 
should be based on short and longterm 
performance measured by satisfaction 
of targeted objectives which are the 
main drivers of shareholder value 
executives should be focused on 
delivering attractive returns to 
shareholders and be given the 
opportunity to receive commensurate 
levels of reward if such performance is 
delivered conversely if returns are 
conservative compensation levels 
should be conservative
• the interests of executives should be 
closely aligned with those of 
shareholders over the longterm 
through substantial share ownership 
and sharebased incentives historically 
this has been achieved via our co
investment plan cip which has 
performance and holding periods of five 
years from grant and through our share 
ownership guidelines reflected 
throughout this annual report are our 
ongoing efforts to improve 
communication regarding our strategic 
objectives and the performance of the 
group during 2015 we will review our 
shortterm and longterm compensation 
schemes which will include 
consultations with stakeholders to 
ensure compensation policies and plans 
throughout the group are aligned with 
our future strategic objectives and 
related performance measures
members
nina henderson chairman 
lance browne
elmar heggen
florence pierre
alex sulkowski
length of tenure of nonexecutive
directors within the committee
69 years
36 years
03 years
2
2
1
“ i am pleased to present the 
2014 directors’ remuneration 
report for which we will be 
seeking your approval at the 
annual general meeting on 
19 may 2015”
nina henderson
chairman remuneration committee strategic report governance financial statements
 wwwreguscom 39
2014 outcomes
• as discussed within the strategic report 
on pages 1 to 25 2014 was a good year 
for the group with strong growth and as 
the chart below illustrates attractive 
shareholder returns 
return on net investment
153
243
149
180
268
214
11 10 09 08 07
06 and
earlier
postcash tax return on net 
investment by year group
the chart shows the post tax cash return 
achieved by individual year group 
investments from 2011 back to 2007 and 
the combined performance of all locations 
opened in or earlier than 2006 the total 
return in respect of all the locations 
opened on or before 31 december 2011 
and which are therefore more established 
in respect of their financial performance 
was 209 all these returns are above the 
group’s cost of capital
• the annual bonus for 2014 was based on 
adjusted operating profit performance 
the committee determined that 
performance in the year as described 
earlier in this report warranted annual 
bonuses of 100 of salary to the 
executive directors half of the awarded 
bonuses will be deferred as regus 
investment shares for three years under 
the cip see below
remuneration report
key features of our framework for 2015
salary
benefitspension
50 deferred
cip – investment shares
cip – matching shares
annual bonus
• market competitive fixed remuneration
• no salary increases for executive directors
• reflect location and nature of role
• up to 4 for 1 match on number of investment shares committed
• maximum 200 of salary
• based on stretching eps and tsr targets over 3 years
• clawback applies from 2015
3 year performance period  2 year holding period
• maximum 100 of salary
• based on stretching adjusted operating profit targets for the year
• up to 50 deferred into investment shares
• clawback applies from 2015
deferred 3 years
• the only longterm incentive award 
which vested in respect of 2014 was the 
final tranche of the matching shares 
awarded to mark dixon under the 
200809 cip award which was 
measured over a five year performance 
period to 31 december 2014 based on 
achieving adjusted eps of 294p 
adjusted to exclude certain growth 
investments and oneoff exceptional 
items over the five year performance 
period in accordance with the terms  
of the original award and tsr of 119 
vs ftse all share 55 the committee 
determined that 86 of the final 
tranche should vest 
regus tsr vs ftse all share over 
ve year cip performance period 
regus   ftse 350 excl investment trusts
50
0
50
100
150
14 13 12 11 10 09
• the “single figure of remuneration” for 
the executive directors was therefore as 
follows further detail on page 42 
fixed bonus cip total
mark 
dixon £635k £587k £1549k £2770k
dominique 
yates £478k £321k £0k £799k
2015 decisions
• following the annual review there  
are no changes to the salaries of the 
executive directors with effect from  
1 january 2015 salaries will be 
considered as part of the wider review  
of the remuneration framework to be 
held during the year see below and 
therefore may change
• the structure and quantum of our 
incentive opportunities will remain 
unchanged as set out in the table  
on page 40 
• based on the deferral of half of the  
2014 bonus ie 50 of salary an 
opportunity to earn up to four matching 
shares for each investment share will 
be awarded under the cip  this will be 
equivalent to a maximum award of 
200 of salary 
• for these cip matching shares 75  
will be based on eps with targets  
which require compound annual growth 
of 32 pa for maximum vesting the 
remaining 25 will continue to be based 
on our total shareholder return tsr 
against the constituents of the ftse 350 
excluding financial services and mining 
• performance will be measured over a 
three year performance period with a 
subsequent two year holding period  40 regus plc annual report and accounts 2014
remuneration report continued
summary of executive director remuneration framework  application for 2015
the table below summarises the framework for executive remuneration at regus it reflects the remuneration policy which was 
approved by shareholders at the 2014 annual general meeting and which can be found in the 2013 directors’ remuneration report  
or downloaded from wwwreguscom
purpose and operation application for 2015
fixed remuneration
base salary
provides a market competitive component of fixed 
remuneration taking into account the scope and 
responsibilities of the role the skills experience and 
circumstances of the individual sustained performance 
in role and appropriate market data 
salary increases will normally be broadly in line with 
increases awarded to other employees in the business 
although the committee may award larger increases  
if it considers it appropriate eg change in role 
development and performance in role or to align  
to market data
salaries effective from 1st january will remain 
unchanged at
• mark dixon £587k 
• dominique yates chf495k
salaries will be considered as part of the wider review 
of the remuneration framework to be held during the 
year and therefore may change
benefits
provide a competitive benefits package for the nature 
and location of the role and which currently includes 
private health insurance and life insurance dominique 
yates also receives representation and expatriate 
allowances reflecting specific individual circumstances
no changes proposed 
the committee believes it is appropriate to continue 
payment of expatriate and housing allowances to the 
cfo as part of a market competitive package for the 
location of the role although the committee will keep 
this policy under review for future years
pension
provide retirement benefits in line with the overall 
group policy through participation in the company’s 
personal pension scheme the committee considers 
the maximum contribution for executive directors  
7 of salary to be low compared with comparative 
companies but prefers to offer enhanced variable 
compensation rather than a fixed additional  
pension contribution
no changes 7 of base salary
before any vested shares are released 
this simplifies the framework whilst 
maintaining an overall time horizon of 
five years for the cip awards
• in addition for these 2015 awards the 
eps targets have been recalibrated from 
an absolute pence target into a 
compound annual percentage growth 
rate this brings our practice into line 
with the majority of the market easing 
comparability for shareholders the 
percentage growth targets for this year 
are properly stretching targets
• beginning in 2015 the annual bonus 
and the cip will both be subject to 
clawback provisions under which the 
committee may seek to reduce or 
reclaim variable remuneration in 
circumstances of material misstatement 
or participant misconduct further 
details are set out on page 41
• during 2015 the committee intends to 
review the remuneration and incentive 
framework for our executive directors  
to ensure alignment with the group’s 
strategic objectives we intend to consult 
with our major shareholders and investor 
bodies ahead of bringing our proposals 
for shareholder approval at the 2016 agm
chairman  nonexecutive director fees
during 2014 the fees for the chairman  
and nonexecutive directors were 
benchmarked and reviewed resulting  
in an increase with effect from 2015 as  
set out in this report the last fee increase 
for the chairman was 2011 and for the 
nonexecutive directors in 2012 since this 
time the scale and market capitalisation of 
the business has increased significantly 
as well as the expectations of what is 
required of the nonexecutive directors 
the chairman’s fee also covers 
participation in the boards of certain 
group companies which has  
also expanded over this time period
at the 2014 agm the directors’ 
remuneration report received strong 
shareholder support for both remuneration 
related resolutions the voting summary is 
provided on page 45 we look forward to 
receiving your support for this report at the 
2015 agm
nina henderson
chairman remuneration committee strategic report governance financial statements
 wwwreguscom 41
remuneration report continued
summary of executive director remuneration framework  application for 2015 continued
purpose and operation application for 2015
variable remuneration
annual 
bonus
to incentivise and reward annual performance for 
shareholders maximum opportunity 100 of base 
salary per annum 
up to 50 of any bonus earned can be deferred into 
investment shares under the cip see below the 
remainder is paid in cash 
maximum opportunity unchanged 100 of salary
the bonus will be determined by reference to adjusted 
operating profit performance in 2015 
the committee considers the targets to be 
commercially sensitive
from 2015 clawback provisions apply 
co
investment 
plan 
cip
to reward deferral under the annual bonus encourage 
the buildup of significant personal shareholdings over 
time and provide a variable pay opportunity which 
motivates and rewards longterm performance
an annual bonus of up to 50 of salary gross may be 
awarded in the form of investment shares which will be 
released at the end of a holding period of three years 
subject to continued employment for each investment 
share held up to four additional shares matching 
shares may be earned based on the company’s 
longterm performance the maximum award is 
therefore 200 of base salary per annum 
from 2015 clawback provisions apply any shares 
which vest after the three year performance period will 
be subject to a subsequent two year holding period 
before they are released
the executive directors will defer half of the 2014 bonus 
ie 50 of salary and therefore the number of 
matching shares which will be awarded is 200 of 
salary the matching shares will vest subject to eps  
and tsr performance conditions over a three year 
performance period in accordance with the targets  
as set out in the table below
shareholding 
guidelines
under the regus shareholding guidelines executive 
directors are expected to build up a shareholding of 
200 of salary in regus shares
no change to the guideline 
executive directors already exceed the guideline
other key elements of the framework
clawback
for the 2015 annual bonus and cip awards the committee will 
have discretion to reclaim bonus cash for a period of three years 
after payment cancel or reduce the number of investment shares 
for a period of three years after grant cancel or reduce the 
number of unvested matching shares at any point prior to vesting 
or reclaim vested matching shares for a period of two years after 
vesting ie five years from grant in circumstances of material 
misstatement of the company’s audited financial results 
misconduct on the part of the participant or error in assessing  
a performance condition applicable to the award or in the 
information or assumptions on which the award was granted  
or vests
service contracts
executive directors have service contracts with the group  
which can be terminated by the company or the director by  
giving 12 months’ notice the company may terminate the 
employment of the chief executive by making a payment in lieu  
of notice which would not exceed 12 months’ salary unless it is 
renewed the contract of the chief financial officer will terminate 
automatically after five years from 1st september 2011 without 
requiring notice
 2015 cip – performance targets
tsr target 25 of each tranche
regus tsr ranking against the constituents of the ftse 350 index 
excluding financial services and mining companies
 of shares 
vesting
median 25
upper quartile or above 100
eps target 75 of each tranche
compound annual growth in eps over the three year period to 31 
december 2017
 of shares 
vesting
24 25
32 100
straightline vesting between median and upper quartile no vesting below the 
threshold target 
eps will be defined as basic eps of the group with committee 
discretion to adjust eps both positively and negatively to take 
into account oneoff exceptional items which do not appropriately 
reflect underlying performance of the group and to make 
adjustments where investments supporting growth are 
significantly above or below those envisaged when the targets 
were set the purpose of such adjustments is to ensure a fair 
measurement of performance and to avoid the eps targets acting 
as a disincentive to the investments which underpin the long
term growth strategy the targets for 2017 will be based on 
compound annual growth from an equivalent “base year” eps 
figure for 2014 of 74p  42 regus plc annual report and accounts 2014
remuneration report continued
outcomes for 2014
single total figure of remuneration table
the remuneration in respect of the year ending 31 december 2014 of the executive directors who served during the year is shown in the 
table below with the prior year comparative 
£’000
salary benefits pension annual bonus cip total
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
mark dixon 5870 5870 66 106 411 411 5870 4637 15485 7516 27702 18540
dominique yates 3208 3416 1252 1228 317 315 3208 2699 – – 7985 7658
the salary benefits pension and cash element of the bonus  
for dominique yates are paid in swiss francs and have been 
converted to pounds sterling for the table above using the 
average exchange rate for the relevant year
benefits – includes private health insurance and life insurance 
and for dominique yates it also includes a representation 
allowance and expatriate allowances
annual bonus – includes the full value of the annual bonus 
awarded in respect of the relevant financial year in both 2014  
and 2013 50 of the value shown in the table was deferred  
into investment shares for three years subject to continued 
employment under the terms of the cip  with the remainder 
received in cash 
cip awards – includes the value of matching share awards made 
to mark dixon under the cip in previous years which vested in 
respect of a performance period ending in the relevant financial 
year the vesting of the final tranche of the 2008  2009 matching 
shares is included in the 2014 column 820205 shares vested out 
of the maximum of 954420 the vesting of the second tranche of 
the 2008  2009 matching shares is included in the 2013 column 
the figure has been updated to reflect the actual share price on 
the date of vesting 
 annual bonus
in 2014 the executive directors had a maximum bonus 
opportunity of 100 of salary based on performance against 
stretching adjusted group operating profit targets for the 
financial year for the purposes of the annual bonus the 
committee makes adjustments to group operating profit to reflect 
certain investments in growth in order to ensure that the bonus 
does not act as a disincentive to these investments which 
underpin the longterm growth strategy 
based on the adjusted operating profit performance in the year 
the committee determined that the chief executive officer and 
chief financial officer should each receive a bonus of 100 of 
salary in respect of the year
in considering the bonus for the year the committee also took 
into account the following performance context explained in 
more detail on pages 1119 of the annual report
• group revenue increased by 158 at constant currency  
to £16761m group operating profit by 27 at constant 
currency to £1043m 
• strong cash performance with £176m 186p per share  
of cash generated before net growth capital expenditure  
and dividends 
• reduction in overheads of 18 ppt to 167 of revenues
• a posttax return for 2014 on investment in our estate added  
on or before 31 december 2011 of 209 2013 168
• increase in network of 24 to 2269 locations
the committee believes that the adjusted operating profit  
targets used to assess the annual bonus are commercially 
sensitive and that it is not appropriate to disclose them currently 
or retrospectively 
half of the awarded bonus 50 of salary is paid in cash and half 
the remaining 50 of salary will be awarded in the form of 
investment shares the vesting of which will be deferred for three 
years under the cip  further details of these awards to be made in 
2015 are set out in the table on page 41
cip awards vesting in respect of 2014
the 2008 and 2009 matching share awards were divided into 
three separate equal tranches subject to performance periods 
over three four and five years respectively from 1 january 2010 
the final tranche of the 2008 and 2009 matching share award was 
based on a five year performance period to 31 december 2014  
the vesting conditions for the final tranche are outlined below
tsr target 25 of tranche
regus tsr  achieved relative to ftse all share total return index
 of shares 
vesting
100 0
above 100 but below 101 25
for each complete 1 over 100 075
200 or above 100
eps target 75 of tranche
eps targets for year ending 2014 
tranche 3
 of shares 
vesting
18p 25
22p 50
26p 75
30p 100
the committee has assessed performance against the  
tsr and eps targets set in 2010 and concluded that 86 of the 
final tranche should vest and the remainder of that tranche  
shall lapse
• tsr 25 from a base point of 100 regus achieved a tsr 
value of 2186 compared to 1546 for the ftse all share 
index over the performance period equating to a vesting of 
5575 of this part of the award 
• eps 75 based on achieving an adjusted 2014 eps of 294p 
which reflects underlying performance delivered during the  
five year performance period adjusted to exclude the positive 
impact of changes in accounting policy and estimates 
implemented during 2012 and to exclude certain investments 
in growth and oneoff exceptional items in accordance with  
the terms of the original award the committee concluded that 
96 of this part of the award should vest  strategic report governance financial statements
 wwwreguscom 43
remuneration report continued
cip awards made in 2014
the executive directors deferred 50 of their 2013 annual bonus 
into investment shares under the cip  the investment shares will 
vest and be released at the end of a three year holding period 
subject to continued employment with the regus group during 
that period 
for each investment share held the executive directors may earn 
up to a maximum of four matching shares which will vest subject 
to eps and tsr performance conditions in three equal tranches 
over performance periods of three four and five years as the 
investment shares had a value of 395 of salary the maximum 
number of matching shares awarded in 2014 was equivalent to 
158 of salary 
details of the investment share and matching share awards made during 2014 to the executive directors are shown in the table below 
executive director type of interest face value £000 threshold vesting end of holdingperformance period
mark dixon
investment shares 2319 na 4th march 2017
matching shares 9275 25 one third 31st december 2016 2017 and 2018
dominique yates
investment shares 1325 na 4th march 2017
matching shares 5298 25 one third 31st december 2016 2017 and 2018
the face value has been calculated using the share price of 225p the closing price prior to the date of grant 5th march 2014 
the matching shares will vest subject to eps and tsr 
performance conditions in three equal tranches over performance 
periods of three four and five years in accordance with the 
targets as set out below 
tsr target 25 of each tranche
regus tsr ranking against the constituents of the ftse 350 index 
excluding financial services and mining companies
 of shares 
vesting
median 25
upper quartile or above 100
straightline vesting between median and upper quartile no 
vesting below median 
 
eps target 75 of each tranche
vesting scale
eps targets for years ending
2016 
tranche 1
2017 
tranche 2
2018 
tranche 3
25 143p 161p 171p
100 170p 202p 225p
straightline vesting between these points no vesting below the 
threshold target
in previous years the tsr targets were based on outperformance 
of the ftse all share index for 2014 awards the committee 
recalibrated the tsr targets to be based on the ranked tsr 
performance of regus against the constituents of the ftse 350 
excluding financial services and mining companies the 
committee believed that given the absence of any listed peer 
companies the use of a broad equity index remained appropriate 
and that the ftse 350 is preferable to the all share index on the 
basis of the position of regus in the ftse 350 index companies 
from the financial services and mining sectors are excluded  
in order to ensure the tsr result is not unduly skewed by the 
performance of these sectors which are often subject to their  
own business cycles
for the purposes of the cip  eps is defined as basic eps of  
the group the committee has discretion to adjust eps both 
positively and negatively to take into account oneoff exceptional 
items which do not appropriately reflect underlying performance 
of the group and to make adjustments where the investments in 
new locations and  or business initiatives is significantly above 
or below that envisaged when the targets were set the purpose 
of such adjustments is to ensure a fair measurement of 
performance and to avoid the eps targets acting as a disincentive 
to the growth investments which underpin the longterm growth 
strategy the equivalent basic eps figure for 2013 was 71p and 
therefore the targets represented at the maximum approximately 
2634 growth per annum which the committee believed to  
be stretching in the current environment particularly over 
performance periods which extended over three four and  
five years 44 regus plc annual report and accounts 2014
remuneration report continued
statement of share scheme interests and shareholdings
the following table sets out for directors who served during the year the total number of shares held including the interests of 
connected persons as at 31 december 2014 it also shows the interests in share schemes for the executive directors 
shares held
shareholding requirement interests in shareoption awards
 of salary 
required
 of salary 
achieved
a
guideline met
cip
sop
d
investment 
shares
b
matching 
shares
c
executive directors
mark dixon 323447296 200 114832 yes 291636 2120964 –
dominique yates 741989 200 482 yes 174580 698320 907333
a based on share price 2084p and base salary as at 31 december 2014
b  the cip investment shares are in the form of unvested conditional shares granted on 6th march 2013 and 5th march 2014 and which vest subject to continued 
employment at the end of a three year holding period
c  the cip matching shares are in the form of unvested conditional shares which will vest subject to the achievement of eps and tsr performance targets the 
number of share interests includes the following awards which were unvested as at 31st december 2014 for mark dixon the number includes 954420 matching 
shares under tranche three of the 2008  2009 cip awards granted on 18th march 2008 and 23rd march 2009 respectively 754340 matching shares granted  
on 6th march 2013 and 412204 matching shares granted on 5th march 2014 for dominique yates the number shows 462836 matching shares granted on  
6th march 2013 and 235484 matching shares granted on 5th march 2014
d   the share option plan sop grants are vested market value share options exercise price 7435p which were granted to dominique yates on 2nd september 2011 
to aid his recruitment the options are exercisable in three equal tranches in september 2014 2015 and 2016
e  with the exception of the directors’ interests disclosed in the table above no director had any additional interest in the share capital of the company during the year 
chairman and nonexecutive directors
in accordance with the remuneration policy the chairman 
receives a single fee which reflects all board and committee 
duties and is determined by the remuneration committee the 
nonexecutive directors receive a basic fee and may also receive 
supplementary fees for committee or other duties as determined 
by the chairman and the executive directors the chairman and 
nonexecutive directors do not receive any benefits nor do they 
participate in any bonus or share incentive scheme nor do they 
participate in any pension arrangements
the remuneration in respect of the year ending 31 december 2014 
of the nonexecutive directors who served during the year is 
shown in the table below with the prior year comparative 
£’000
fees
2014 2013
douglas sutherland 1650 1650
lance browne 615 615
elmar heggen 500 500
nina henderson 305 na
florence pierre 445 274
alex sulkowski 500 500
nina henderson was appointed as a nonexecutive director with effect from  
20 may 2014 
during 2014 the fees for the chairman and nonexecutive 
directors were reviewed the chairman’s fee had not been 
increased since 2011 and the nonexecutive director fees had  
not been increased since 2012 during that time the financial 
scale and market capitalisation of the business has increased 
significantly therefore it was considered appropriate to  
increase some of the fees with effect from 2015 as set out  
in the following table
2014 2015 change
nonexecutive chairman £165000 £200000 21
basic fee for nonexecutive 
director £42000 £50000 19
additional fees
chair of audit committee £8000 £10000 25
chair of remuneration 
committee £8000 £10000 25
chair of nomination committee £6000 £6000 0
senior independent director £6000 £6000 0
variable dislocation allowance  
for nonluxembourg directors
£2500
£7500
£2500
£7500 0
the shareholding as at 31 december 2014 for nonexecutive 
directors is set out below
chairman and nonexecutive directors shares held
douglas sutherland 400000
lance browne 6203
elmar heggen –
alex sulkowski –
florence pierre –
nina henderson 16500
during the period 31st december 2014 to 3rd march 2015 lance 
browne acquired 3738 shares these acquired shares constitute 
part of the fees payable to him in ordinary shares of the company 
for the relevant period of service
supporting disclosures and additional context
percentage change in remuneration of the chief executive officer
the table below shows the percentage change in remuneration  
of the chief executive officer and group support employees on a  
per capita basis between the year ending 31 december 2013  
and the year ending 31 december 2014 given the significant 
scale and diversity of the overall global employee population  
the committee considers the group support employees a more 
relevant comparison 
chief 
executive
group 
support 
employees
salary 0 234
benefits 38 143
annual bonus 21 396 strategic report governance financial statements
 wwwreguscom 45
remuneration report continued
relative importance of spend on pay
the table below shows total employee remuneration and 
distributions to shareholders in respect of the years ending  
31 december 2014 and 2013 and the difference between the two 
2014 2013 change
total employee remuneration £3346m £3161m 58
distributions to shareholders £354m £311m 138
performance graph and table
the graph right shows the tsr of regus in the six year period to 
31 december 2014 against the tsr of the ftse 350 excluding 
investment trusts and all share indices tsr refers to share price 
growth and assumes dividends are reinvested over the relevant 
period the committee considers the ftse 350 excluding 
investment trusts relevant since it is an index of companies of 
similar size to regus 
the table below provides remuneration data for the chief executive officer for each of the six financial years over the equivalent period 
2009 2010 2011 2012 2013 2014
single total figure of remuneration £628k £759k £1130k £1773k £1854k £2770k
bonus  of maximum 0 19 50 100 79 100
long term incentive vesting  of maximum 0 0 0 11 35 86
long term incentive vesting in 2011 comprises 25 of maximum in respect of the cip and 0 in respect of the vcp  
consideration of directors’ remuneration – remuneration 
committee and advisors
details of the composition of the remuneration committee are set 
out on page 38 of this report the committee’s terms of reference 
are freely available on the company’s website wwwreguscom
in addition to the designated members of the remuneration 
committee the chairman chief executive officer and company 
secretary also attended committee meetings during the year 
although none were present during discussions concerning their 
own remuneration
deloitte llp continued to provide independent advice to the 
committee during the year deloitte was appointed by the 
committee in 2010 following a competitive selection process 
undertaken by the committee the fees charged by deloitte for 
the provision of independent advice to the committee during 
2014 were £25000 deloitte also provided unrelated tax advice  
to regus during 2014 deloitte is a member of the remuneration 
consultant’s group and as such voluntarily operates under the 
code of conduct in relation to executive remuneration consulting 
in the uk with regard to remuneration advice the committee is 
comfortable that the deloitte engagement partner and team are 
objective and independent
statement of voting at general meeting
the committee is directly accountable to shareholders and in 
this context is committed to an open and transparent dialogue 
with shareholders on the issue of executive remuneration the 
members of the committee attend the company’s annual general 
meeting and are available to answer shareholders’ questions 
about directors’ remuneration votes cast by proxy and at the 
annual general meeting held on 20 may 2014 in respect of 
remunerated related resolutions are shown in the table 
resolution 
votes for votes against
total votes cast votes withheld    
approval of annual remuneration report for year 
ending 31 december 2013 780790818 9829 13573095 171 794363913 25583
approval of remuneration policy 790028138 9956 3502178 044 793530316 859180
for and on behalf of the board
nina henderson
chairman of the remuneration committee
3 march 2015
regus tsr vs ftse all share over ve year 
cip performance period 
173
regus   ftse 350 excl investment trusts
50
0
50
100
150
14 13 12 11 10 09 46 regus plc annual report and accounts 2014
directors’ report
the directors of regus plc société anonyme the ‘company’ 
present their annual report and the audited financial statements 
of the company and its subsidiaries together the ‘group’ for the 
year ended 31 december 2014
directors
the directors of the company who held office during the financial 
year were
executive directors
mark dixon 
dominique yates
nonexecutive directors
douglas sutherland 
lance browne 
elmar heggen 
nina henderson 
florence pierre 
alex sulkowski
biographical details for the directors are shown on pages  
26 and 27
details of the directors’ interests and shareholdings are given  
in the remuneration report on pages 38 to 45
the corporate responsibility statement corporate governance 
statement audit committee report remuneration report and 
director statements on pages 24 to 48 all form part of this report
principal activity
the company is the world’s leading provider of global office 
outsourcing services
business review
the directors have presented a strategic report as follows
the chief executive officer’s review and chief financial officer’s 
review on pages 11 to 19 respectively address
• review of the company’s business pages 11 to 15
• trends and factors likely to affect the future development 
performance and position of the business pages 11 to 15
• development and performance during the financial year  
pages 16 to 19
• employee development performance and diversity  
page 13 and
• position of the business at the end of the year pages 17 to 19
the corporate responsibility report on page 24 includes  
the sections of the strategic report in respect of
• environmental matters and
• social and community issues
the audit committee report on pages 35 to 37 includes a 
description of the principal risks and uncertainties facing  
the company
the directors’ statements on page 48 includes the statutory 
statement in respect of disclosure to auditors
the directors do not consider any contractual or other 
relationships with external parties to be essential to the  
business of the group
results and dividends
profit before taxation for the year was £871m 2013 £815m
the directors are pleased to recommend a final dividend of 
£258m 2013 £236m being 275 pence per share 2013 25 
pence per share the total dividend for the year will therefore be 
4 pence per share made up of the interim dividend of 125 pence 
per share paid in october 2014 2013 11 pence per share and 
assuming the final dividend is approved by shareholders at the 
forthcoming agm an additional 275 pence per share 2013 25 
pence per share which is expected to be paid on 29 may 2015  
to shareholders on the register at the close of business on  
1 may 2015
policy and practice on payment of creditors
the group does not follow a universal code dealing specifically 
with payments to suppliers but where appropriate our  
practice is to 
• agree the terms of payment upfront with the supplier
• ensure that suppliers are made aware of these terms of 
payment and
• pay in accordance with contractual and other legal obligations
at 31 december 2014 the number of creditor days outstanding for 
the group was 21 days 2013 31 days and for the company was 
19 days 2013 28 days
going concern
the directors having made appropriate enquiries have a 
reasonable expectation that the group and the company have 
adequate resources to continue in operational existence for the 
foreseeable future for this reason they continue to adopt the 
going concern basis in preparing the accounts on pages 50 to 54
in adopting the going concern basis for preparing the financial 
statements the directors have considered the further information 
included in the business activities commentary as set out on pages 
11 to 15 as well as the group’s principal risks and uncertainties as 
set out on pages 21 to 23 based on the performance of the group 
its financial position and cash flows the board is satisfied that the 
group is well placed to manage its business risks successfully
further details on the going concern basis of preparation can be 
found in note 23 of the notes to the accounts on page 73
employees
the group treats applicants for employment with disabilities with 
full and fair consideration according to their skills and capabilities
should an employee become disabled during their employment 
efforts are made to retain them in their current employment or to 
explore opportunities for their retraining or redeployment 
elsewhere within the group
political and charitable donations
it is the group’s policy not to make political donations either  
in the uk or overseas the group made charitable donations  
of £155329 during the year 2013 £80500 strategic report governance financial statements
 wwwreguscom 47
directors’ report
capital structure
the company’s share capital comprises 950969822 issued and 
fully paid up ordinary shares of 1p nominal value in regus plc 
2013 950969822 all ordinary shares have the same rights  
to vote at general meetings of the company and to participate in 
distributions there are no securities in issue that carry special 
rights in relation to the control of the company the company’s 
shares are traded on the london stock exchange
details of the role of the board of directors the ‘board’ and the 
process for the appointment of directors can be found on pages 
30 to 33
at the company’s annual general meeting held on 20 may 2014 
the shareholders of the company approved a resolution giving 
authority for the company to purchase in the market up to 
94730212 ordinary shares representing approximately 10  
of the issued share capital excluding treasury shares as at  
17 april 2014
9484516 shares were purchased pursuant to this authority 
during the year
details of the company’s employee share schemes can be found 
in the report of the remuneration committee on pages 38 to 45
the outstanding awards and options do not carry any rights in 
relation to the control of the company
substantial interests
at 3 march 2015 the company has been notified of the  
following substantial interests held in the issued share capital  
of the company
number of 
ordinary shares
 of issued 
share capital
estorn limited 323447296 3417
prudential plc 121286254 1291
odey asset management llp 56497630 603
fil limited 47735864 503
 mark dixon indirectly owns 100 of estorn limited
auditors
in accordance with luxembourg law a resolution for the 
reappointment of kpmg luxembourg société coopérative as 
auditors of the company is to be proposed at the forthcoming 
annual general meeting
approval
this report was approved by the board on 12 february 2015
on behalf of the board
tim regan
company secretary
3 march 2015  48 regus plc annual report and accounts 2014
directors’ statements
statement of directors’ responsibilities in respect of 
the annual report and financial statements
the directors are responsible for preparing the annual report  
and the group and parent company financial statements in 
accordance with applicable law and regulations
company law requires the directors to prepare group and parent 
company financial statements for each financial year under that 
law they are required to prepare the group financial statements 
in accordance with international financial reporting standards 
‘ifrss’ as adopted by the eu and applicable law and have 
elected to prepare the parent company annual accounts in 
accordance with luxembourg generally accepted accounting 
practice and applicable law
under company law the directors must not approve the financial 
statements unless they are satisfied that they give a true and fair 
view of the state of affairs of the group and parent company and 
their profit or loss for the period
in preparing each of the group and parent company financial 
statements the directors are required to
• select suitable accounting policies and then apply  
them consistently
• make judgements and estimates that are reasonable  
and prudent
• for the group financial statements state whether they have 
been prepared in accordance with ifrss as adopted by the eu
• for the parent company annual accounts state whether 
applicable luxembourg accounting standards have been 
followed subject to any material departures disclosed and 
explained in the parent company annual accounts and
• prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the group and the 
parent company will continue in business
the directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the company’s 
transactions and which disclose with reasonable accuracy at  
any time the financial position of the parent company and to 
enable them to ensure that its financial statements comply with 
applicable law and regulations they have general responsibility 
for taking such steps as are reasonably open to them to safeguard 
the assets of the group and to prevent and detect fraud and  
other irregularities
under applicable law and regulations the directors are also 
responsible for preparing a directors’ report a remuneration 
report and a corporate governance statement that complies with 
that law and those regulations 
the directors are responsible for the maintenance and integrity  
of the corporate and financial information included on the 
company’s websites
legislation in the uk governing the preparation and 
dissemination of financial statements may differ from legislation 
in other jurisdictions 
statutory statement as to disclosure to auditor
the directors who held office at the date of approval of this 
directors’ statements confirm that
• so far as they are each aware there is no relevant audit 
information of which the company’s auditor is unaware and 
• each director has taken all the steps that he ought to have 
taken as a director in order to make himself aware of any 
relevant audit information and to establish that the company’s 
auditor is aware of that information
these financial statements have been approved by the directors 
of the company the directors confirm that the financial 
statements have been prepared in accordance with applicable  
law and regulations and that they include a fair review of the 
development and performance of the business and the position  
of the parent company and the undertakings included in the 
consolidation taken as a whole together with a description of  
the principal risks and uncertainties that they face
we the directors of the company confirm that to the best of  
our knowledge
• the financial statements prepared in accordance with the 
applicable set of accounting standards give a true and fair 
view of the assets liabilities financial position and profit or 
loss of the company and the undertakings included in the 
consolidation as a whole and
• the directors’ report including content contained by reference 
includes a fair review of the development and performance of 
the business and the position of the company and the 
undertakings included in the consolidation taken as a whole 
together with a description of the principal risks and 
uncertainties that they face
by order of the board
mark dixon dominique yates
chief executive officer chief financial officer
3 march 2015  wwwreguscom 49
governance strategic report financial statements
auditors’ report
auditors’ report 
  
 
to the shareholders of  
regus plc société anonyme 
26 boulevard royal 
l2449 luxembourg 
 
  wwwreguscouk 49 
governance financial statements strategic report
report of the réviseur d’entreprises agréé 
report on the consolidated financial statements 
we have audited the accompanying consolidated financial 
statements of regus plc société anonyme which comprise  
the consolidated balance sheet as at 31 december 2014 and  
the consolidated statements of income comprehensive income 
changes in equity and cash flows for the year then ended and  
a summary of significant accounting policies and other 
explanatory information as set out on pages 50 to 89 
board of directors’ responsibility for the consolidated 
financial statements  
the board of directors is responsible for the preparation and  
fair presentation of these consolidated financial statements  
in accordance with international financial reporting standards 
as adopted by the european union and for such internal control 
as the board of directors determines is necessary to enable the 
preparation of consolidated financial statements that are free  
from material misstatement whether due to fraud or error 
responsibility of the réviseur d’entreprises agréé 
our responsibility is to express an opinion on these consolidated 
financial statements based on our audit we conducted our audit 
in accordance with international standards on auditing as 
adopted for luxembourg by the commission de surveillance du 
secteur financier those standards require that we comply with 
ethical requirements and plan and perform the audit to obtain 
reasonable assurance about whether the consolidated financial 
statements are free from material misstatement 
an audit involves performing procedures to obtain audit evidence 
about the amounts and disclosures in the consolidated financial 
statements the procedures selected depend on the judgement 
of the réviseur d’entreprises agréé including the assessment of 
the risks of material misstatement of the consolidated financial 
statements whether due to fraud or error in making those risk 
assessments the réviseur d’entreprises agréé considers internal 
control relevant to the entity’s preparation and fair presentation 
of the consolidated financial statements in order to design audit 
procedures that are appropriate in the circumstances but not for 
the purpose of expressing an opinion on the effectiveness of the 
entity’s internal control an audit also includes evaluating the 
appropriateness of accounting policies used and the 
reasonableness of accounting estimates made by the board of 
directors as well as evaluating the overall presentation of the 
consolidated financial statements  
we believe that the audit evidence we have obtained is sufficient 
and appropriate to provide a basis for our audit opinion 
opinion 
in our opinion the consolidated financial statements as set out  
on pages 50 to 89 give a true and fair view of the consolidated 
financial position of regus plc société anonyme as of  
31 december 2014 and of its consolidated financial performance 
and its consolidated cash flows for the year then ended in 
accordance with international financial reporting standards as 
adopted by the european union 
report on other legal and regulatory requirements 
the consolidated directors’ report including the corporate 
governance statement which is the responsibility of the board  
of directors is consistent with the consolidated financial 
statements and includes the information required by the law  
with respect to the corporate governance statement  
 
kpmg luxembourg société coopérative 
cabinet de révision agréé 
thierry ravasio 
luxembourg 3 march 2015 
  50 regus plc annual report and accounts 2014
consolidated income statement
consolidated income statement 
50 regus plc annual report and accounts 2014 
   
year ended  
31 dec 2014 
year ended 
31 dec 2013 
continuing operations notes 
total  
£m 
total 
£m 
revenue 3 16761 15335
cost of sales  12930 11597
gross profit centre contribution  3831 3738
selling general and administration expenses   2709 2759
research and development expenses 87 72
share of profit of equityaccounted investees net of tax 08 01
operating profit 5 1043 908
finance expense 7 173 105
finance income 7 01 12
net finance expense  172 93
profit before tax for the year  871 815
income tax expense  8 172 146
profit after tax for the year  699 669
   
profit attributable to   
equity shareholders of the parent  699 669
noncontrolling interests  – –
profit after tax for the year  699 669
   
earnings per ordinary share eps   
basic p 9 74 71
diluted p 9 72 70
consolidated statement of comprehensive income 
 
  wwwreguscouk 51 
governance financial statements strategic report
 notes 
year ended  
31 dec 2014  
£m 
year ended 
31 dec 2013 
£m 
profit for the year  699 669
   
other comprehensive income that is or may be reclassified to profit or loss in 
subsequent periods   
cash flow hedges – effective portion of changes in fair value 27 –
foreign currency translation differences for foreign operations net of income tax 61 274
items of other comprehensive income that are or may be reclassified to profit 
or loss in subsequent periods  34 274
   
other comprehensive income that will never be reclassified to profit or loss in 
subsequent periods   
remeasurement of defined benefit liability  – 02
items of other comprehensive income that will never be reclassified to profit 
or loss in subsequent periods  – 02
other comprehensive income for the period net of income tax 34 272
total comprehensive income for the year  733 397
   
total comprehensive income attributable to   
equity shareholders of the parent 733 397
noncontrolling interests  – –
total comprehensive income for the year  733 397  wwwreguscom 51
governance strategic report financial statements
consolidated statement of comprehensive income
consolidated statement of comprehensive income 
 
  wwwreguscouk 51 
governance financial statements strategic report
 notes 
year ended  
31 dec 2014  
£m 
year ended 
31 dec 2013 
£m 
profit for the year  699 669
   
other comprehensive income that is or may be reclassified to profit or loss in 
subsequent periods   
cash flow hedges – effective portion of changes in fair value 27 –
foreign currency translation differences for foreign operations net of income tax 61 274
items of other comprehensive income that are or may be reclassified to profit 
or loss in subsequent periods  34 274
   
other comprehensive income that will never be reclassified to profit or loss in 
subsequent periods   
remeasurement of defined benefit liability  – 02
items of other comprehensive income that will never be reclassified to profit 
or loss in subsequent periods  – 02
other comprehensive income for the period net of income tax 34 272
total comprehensive income for the year  733 397
   
total comprehensive income attributable to   
equity shareholders of the parent 733 397
noncontrolling interests  – –
total comprehensive income for the year  733 397 52 regus plc annual report and accounts 2014
consolidated statement of changes in equity
consolidated statement of changes in equity 
52 regus plc annual report and accounts 2014 
  attributable to equity holders of the parent
a
 
 
share 
capital  
£m 
treasury 
shares 
£m 
foreign 
currency 
translation 
reserve 
£m 
hedging 
reserve
£m 
revaluation 
reserve 
£m 
other 
£m 
retained 
earnings  
£m 
total equity 
attributable 
to equity 
holders  
£m 
non
controlling 
interests 
£m 
total 
equity 
£m 
balance at 1 january 2013 95 70 340 – 105 153 4651 5274 – 5274
total comprehensive income for the year    
profit for the year – – – – – – 669 669 – 669
other comprehensive income    
remeasurement of defined benefit liability 
net of tax –  – – – – – 02 02 – 02
foreign currency translation differences for 
foreign operations net of tax –  – 274 – – – –  274 – 274 
total other comprehensive income net –  – 274 – – – 02 272 – 272
total comprehensive income for the year –  – 274 – – – 671 397 – 397
transactions with owners recorded 
directly in equity    
sharebased payments –  – – – – – 27 27 – 27
ordinary dividend paid note 10 –  – – – – – 311 311 – 311
noncontrolling interest recognised on  
acquisition note 26 –  – – – – – 163 163 77 240
acquisition of noncontrolling interest  
note 26 –  – – – – – 77 77 77 –
settlement of share awards – 29 – – – – 34 05 – 05
balance at 31 december 2013 95 41 66 – 105 153 4764 5142 – 5142
total comprehensive income for the year    
profit for the year – – – – – – 699 699 – 699
other comprehensive income    
remeasurement of defined benefit liability 
net of tax note 25 – – – – – – – – – –
cash flow hedges – effective portion of 
changes in fair value – – – 27 – – – 27 – 27
foreign currency translation differences for 
foreign operations net of tax – – 61 – – – – 61 – 61
total other comprehensive income net – – 61 27 – – – 34 – 34
total comprehensive income for the year – – 61 27 – – 699 733 – 733
transactions with owners recorded 
directly in equity    
sharebased payments – – – – – – 26 26 – 26
ordinary dividend paid note 10 – – – – – – 354 354 – 354
purchase of treasury shares in regus plc – 172 – – – – – 172 – 172
settlement of share awards – 14 – – – – 15 01 – 01
balance at 31 december 2014 95 199 127 27 105 153 5120 5374 – 5374
a total reserves attributable to equity holders of the parent 
share capital represents the net proceeds the nominal value on the issue of the company’s equity share capital 
at 31 december 2014 treasury shares represent 12883455 2013 5257380 ordinary shares of the group that were acquired for the 
purposes of the group’s employee share option plans and the share buyback programme during the period 9484516 shares were 
purchased in the open market and 1858441 treasury shares held by the group were utilised to satisfy the exercise of share awards 
by employees as at 3 march 2015 12883455 treasury shares were held 
the foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements 
of foreign subsidiaries and joint ventures  
the revaluation reserve arose on the restatement of the assets and liabilities of the uk associate from historic to fair value at the time 
of the acquisition of the outstanding 58 interest on 19 april 2006 
other reserves include £379m arising from the scheme of arrangement undertaken on 14 october 2008 £65m relating to merger 
reserves and £01m to the redemption of preference shares partly offset by £292m arising from the scheme of arrangement 
undertaken in 2003 
consolidated balance sheet 
  wwwreguscouk 53 
governance financial statements strategic report
 notes 
as at  
31 dec 2014  
£m 
as at 
31 dec 2013 
£m 
noncurrent assets   
goodwill 11 4972 4387
other intangible assets 12 527 530
property plant and equipment 13 7188 6087
deferred tax assets 8 400 334
other longterm receivables 14 493 375
investments in joint ventures  20 07 13
total noncurrent assets  13587 11726
current assets   
trade and other receivables 15 4401 3769
corporation tax receivable 8 125 81
assets held for sale 17 626 –
cash and cash equivalents 22 728 847
total current assets  5880 4697
total assets  19467 16423
current liabilities   
trade and other payables incl customer deposits 16 6702 5708
deferred income  2053 1798
corporation tax payable 8 103 62
obligations under finance leases 18 – –
bank and other loans 18 14 12
provisions  19 26 08
liabilities held for sale 17 21 –
total current liabilities  8919 7588
net current liabilities  3039 2891
total assets less current liabilities  10548 8835
noncurrent liabilities  
other payables 16 2929 2206
noncurrent derivative financial liabilities 23 77 01
obligations under finance leases 18 01 01
bank and other loans 18 2093 1406
deferred tax liability 8 22 16
provisions  19 43 49
provision for deficit on joint ventures 20 07 12
retirement benefit obligations 25 02 02
total noncurrent liabilities  5174 3693
total liabilities   14093 11281
total assets less liabilities  5374 5142
total equity   
issued share capital 21 95 95
treasury shares  199 41
foreign currency translation reserve  127 66
hedging reserve  27 –
revaluation reserve  105 105
other reserves  153 153
retained earnings  5120 4764
total shareholders’ equity  5374 5142
noncontrolling interests  – –
total equity  5374 5142
total equity and liabilities  19467 16423
approved by the board on 3 march 2015 
mark dixon   dominique yates 
chief executive officer  chief financial officer   wwwreguscom 53
governance strategic report financial statements
consolidated balance sheet
consolidated balance sheet 
  wwwreguscouk 53 
governance financial statements strategic report
 notes 
as at  
31 dec 2014  
£m 
as at 
31 dec 2013 
£m 
noncurrent assets   
goodwill 11 4972 4387
other intangible assets 12 527 530
property plant and equipment 13 7188 6087
deferred tax assets 8 400 334
other longterm receivables 14 493 375
investments in joint ventures  20 07 13
total noncurrent assets  13587 11726
current assets   
trade and other receivables 15 4401 3769
corporation tax receivable 8 125 81
assets held for sale 17 626 –
cash and cash equivalents 22 728 847
total current assets  5880 4697
total assets  19467 16423
current liabilities   
trade and other payables incl customer deposits 16 6702 5708
deferred income  2053 1798
corporation tax payable 8 103 62
obligations under finance leases 18 – –
bank and other loans 18 14 12
provisions  19 26 08
liabilities held for sale 17 21 –
total current liabilities  8919 7588
net current liabilities  3039 2891
total assets less current liabilities  10548 8835
noncurrent liabilities  
other payables 16 2929 2206
noncurrent derivative financial liabilities 23 77 01
obligations under finance leases 18 01 01
bank and other loans 18 2093 1406
deferred tax liability 8 22 16
provisions  19 43 49
provision for deficit on joint ventures 20 07 12
retirement benefit obligations 25 02 02
total noncurrent liabilities  5174 3693
total liabilities   14093 11281
total assets less liabilities  5374 5142
total equity   
issued share capital 21 95 95
treasury shares  199 41
foreign currency translation reserve  127 66
hedging reserve  27 –
revaluation reserve  105 105
other reserves  153 153
retained earnings  5120 4764
total shareholders’ equity  5374 5142
noncontrolling interests  – –
total equity  5374 5142
total equity and liabilities  19467 16423
approved by the board on 3 march 2015 
mark dixon   dominique yates 
chief executive officer  chief financial officer  54 regus plc annual report and accounts 2014
consolidated statement of cash flows
consolidated statement of cash flows 
54 regus plc annual report and accounts 2014 
 notes 
year ended  
31 dec 2014  
£m 
year ended 
31 dec 2013 
£m 
profit before tax for the year  871 815
adjustments for   
net finance expense 7 172 93
share of profit of equityaccounted investees net of tax 20 08 01
depreciation charge 5 13 1075 878
gainloss on disposal of property plant and equipment 09 09
amortisation of intangible assets 5 12 130 97
increasedecrease in provisions 19 12 40
sharebased payments  26 27
other noncash movements  – 23
operating cash flows before movements in working capital 2269 1901
increase in trade and other receivables  277 744
increase in trade and other payables 1028 1385
cash generated from operations  3020 2542
interest paid  136 67
tax paid  209 171
net cash inflow from operating activities  2675 2304
investing activities   
purchase of subsidiary undertakings net of cash acquired 26 910 930
dividends received from joint ventures 20 10 08
purchase of joint ventures  06 04
proceeds on sale of property plant and equipment  73 –
purchase of property plant and equipment 13 2054 2489
purchase of intangible assets 12 110 156
interest received 7 01 12
net cash outflow from investing activities  2984 3559
financing activities   
net proceeds from issue of loans  4382 1327
repayment of loans  3616 24
repayment of principal under finance leases  – 05
acquisitions of noncontrolling interests 26 – 163
reissuance of treasury shares  14 –
purchase of shares  172 23
settlement of share awards  15 11
payment of ordinary dividend 10 354 311
net cash inflow from financing activities  239 790
net decrease in cash and cash equivalents  70 465
cash and cash equivalents at beginning of year  847 1323
effect of exchange rate fluctuations on cash held  49 11
cash and cash equivalents at end of year 22 728 847
notes to the accounts 
  wwwreguscouk 55 
governance financial statements strategic report
1 authorisation of financial statements 
the group and company financial statements for the year ended 31 december 2014 were authorised for issue by the board of 
directors on 3 march 2015 and the balance sheets were signed on the board’s behalf by mark dixon and dominique yates regus plc 
sa is a public limited company incorporated in jersey and registered and domiciled in luxembourg the company’s ordinary shares 
are traded on the london stock exchange 
regus plc sa owns a network of business centres which are leased to a variety of business customers information on the  
group’s structure is provided in note 31 and information on other related party relationships of the group is provided in note 30 
the group financial statements have been prepared and approved by the directors in accordance with international financial 
reporting standards as adopted by the european union ‘adopted ifrss’ the company prepares its parent company annual 
accounts in accordance with luxembourg gaap extracts from these are presented on pages 90 and 91 
2 accounting policies 
basis of preparation 
the group financial statements consolidate those of the parent company and its subsidiaries together referred to as the ‘group’  
and equity account the group’s interest in the associate and jointly controlled entities the extract from the parent company annual 
accounts presents information about the company as a separate entity and not about its group 
the accounting policies set out below have been applied consistently to all periods presented in these group financial statements 
amendments to adopted ifrss issued by the international accounting standards board iasb and the international financial 
reporting interpretations committee ifric with an effective date from 1 january 2014 did not have a material effect on the group 
financial statements unless otherwise indicated 
the following standards interpretations and amendments to standards were adopted by the group for periods commencing on  
1 january 2014 
ias 19 defined benefit plans employee contributions – amendments to ias 19
ias 27 separate financial statements revised and subsequent amendments
ias 28 investments in associates and joint ventures revised
ias 32 amendments to ias 32 – offsetting financial assets and financial liabilities
ias 36 amendments to ias 36 – recoverable amount disclosures for nonfinancial assets
ias 39 amendments to ias 39 – novation of derivatives and continuation of hedge accounting 
ifrs 10 consolidated financial statements and subsequent amendments
ifrs 11 joint arrangements and subsequent amendments
ifrs 12 disclosure of interests in other entities and subsequent amendments
ifric 21 levies 
various annual improvements 2010 – 2012 cycle
various annual improvements 2011 – 2013 cycle
judgements made by the directors in the application of these accounting policies that have significant effect on the consolidated 
financial statements and estimates with a significant risk of material adjustment in the next year are discussed in note 32 
the consolidated financial statements are prepared on a historical cost basis with the exception of certain financial assets and 
liabilities that are measured at fair value as described in note 23 
the directors having made appropriate enquiries have a reasonable expectation that the group and the company have adequate 
resources to continue in operational existence for the foreseeable future for this reason they continue to adopt the going concern 
basis in preparing the consolidated financial statements on pages 50 to 89 
in adopting the going concern basis for preparing the consolidated financial statements the directors have considered the further 
information included in the business activities commentary as set out on pages 11 to 13 as well as the group’s principal risks and 
uncertainties as set out on pages 20 to 23 
further details on the going concern basis of preparation can be found in note 23 to the notes to the consolidated financial statements 
on page 73 
these group consolidated financial statements are presented in pounds sterling £ which is regus plc’s functional currency and all 
values are in million pounds rounded to one decimal place except where indicated otherwise 
the attributable results of those companies acquired or disposed of during the year are included for the periods of ownership 
associates are those entities in which the group has significant influence but not control over the financial and operating policies  
the consolidated financial statements include the group’s share of the total recognised income and expense of associates on  
an equity accounted basis from the date that significant influence commences until the date that significant influence ceases or  
the associate qualifies as a disposal group at which point the investment is carried at the lower of fair value less costs to sell and 
carrying value  
joint ventures include jointly controlled entities that are those entities over whose activities the group has joint control whereby  
the group has rights to the net assets of the arrangement rather than rights to its assets and obligations for its liabilities 
the consolidated financial statements include the group’s share of the total recognised gains and losses of jointly controlled entities 
on an equity accounted basis from the date that joint control commences until the date that joint control ceases or the jointly 
controlled entity qualifies as a disposal group at which point the investment is carried at the lower of fair value less costs to sell  
and carrying value  
    wwwreguscom 55
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notes to the accounts
notes to the accounts 
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governance financial statements strategic report
1 authorisation of financial statements 
the group and company financial statements for the year ended 31 december 2014 were authorised for issue by the board of 
directors on 3 march 2015 and the balance sheets were signed on the board’s behalf by mark dixon and dominique yates regus plc 
sa is a public limited company incorporated in jersey and registered and domiciled in luxembourg the company’s ordinary shares 
are traded on the london stock exchange 
regus plc sa owns a network of business centres which are leased to a variety of business customers information on the  
group’s structure is provided in note 31 and information on other related party relationships of the group is provided in note 30 
the group financial statements have been prepared and approved by the directors in accordance with international financial 
reporting standards as adopted by the european union ‘adopted ifrss’ the company prepares its parent company annual 
accounts in accordance with luxembourg gaap extracts from these are presented on pages 90 and 91 
2 accounting policies 
basis of preparation 
the group financial statements consolidate those of the parent company and its subsidiaries together referred to as the ‘group’  
and equity account the group’s interest in the associate and jointly controlled entities the extract from the parent company annual 
accounts presents information about the company as a separate entity and not about its group 
the accounting policies set out below have been applied consistently to all periods presented in these group financial statements 
amendments to adopted ifrss issued by the international accounting standards board iasb and the international financial 
reporting interpretations committee ifric with an effective date from 1 january 2014 did not have a material effect on the group 
financial statements unless otherwise indicated 
the following standards interpretations and amendments to standards were adopted by the group for periods commencing on  
1 january 2014 
ias 19 defined benefit plans employee contributions – amendments to ias 19
ias 27 separate financial statements revised and subsequent amendments
ias 28 investments in associates and joint ventures revised
ias 32 amendments to ias 32 – offsetting financial assets and financial liabilities
ias 36 amendments to ias 36 – recoverable amount disclosures for nonfinancial assets
ias 39 amendments to ias 39 – novation of derivatives and continuation of hedge accounting 
ifrs 10 consolidated financial statements and subsequent amendments
ifrs 11 joint arrangements and subsequent amendments
ifrs 12 disclosure of interests in other entities and subsequent amendments
ifric 21 levies 
various annual improvements 2010 – 2012 cycle
various annual improvements 2011 – 2013 cycle
judgements made by the directors in the application of these accounting policies that have significant effect on the consolidated 
financial statements and estimates with a significant risk of material adjustment in the next year are discussed in note 32 
the consolidated financial statements are prepared on a historical cost basis with the exception of certain financial assets and 
liabilities that are measured at fair value as described in note 23 
the directors having made appropriate enquiries have a reasonable expectation that the group and the company have adequate 
resources to continue in operational existence for the foreseeable future for this reason they continue to adopt the going concern 
basis in preparing the consolidated financial statements on pages 50 to 89 
in adopting the going concern basis for preparing the consolidated financial statements the directors have considered the further 
information included in the business activities commentary as set out on pages 11 to 13 as well as the group’s principal risks and 
uncertainties as set out on pages 20 to 23 
further details on the going concern basis of preparation can be found in note 23 to the notes to the consolidated financial statements 
on page 73 
these group consolidated financial statements are presented in pounds sterling £ which is regus plc’s functional currency and all 
values are in million pounds rounded to one decimal place except where indicated otherwise 
the attributable results of those companies acquired or disposed of during the year are included for the periods of ownership 
associates are those entities in which the group has significant influence but not control over the financial and operating policies  
the consolidated financial statements include the group’s share of the total recognised income and expense of associates on  
an equity accounted basis from the date that significant influence commences until the date that significant influence ceases or  
the associate qualifies as a disposal group at which point the investment is carried at the lower of fair value less costs to sell and 
carrying value  
joint ventures include jointly controlled entities that are those entities over whose activities the group has joint control whereby  
the group has rights to the net assets of the arrangement rather than rights to its assets and obligations for its liabilities 
the consolidated financial statements include the group’s share of the total recognised gains and losses of jointly controlled entities 
on an equity accounted basis from the date that joint control commences until the date that joint control ceases or the jointly 
controlled entity qualifies as a disposal group at which point the investment is carried at the lower of fair value less costs to sell  
and carrying value  
   56 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
56 regus plc annual report and accounts 2014 
2 accounting policies continued 
when the group’s share of losses exceeds its interest in a joint venture the group’s carrying amount is reduced to nil and recognition 
of further losses is discontinued except to the extent that the group has incurred legal or constructive obligations or made payments 
on behalf of a joint venture 
on 19 april 2006 the group acquired the remaining 58 of the shares of the uk business that were not already owned by the group 
as a result the group fully consolidated the uk business from that date the acquisition was accounted for through the purchase 
method and as a consequence the entire assets and liabilities of the uk business were revalued to fair value the effect of these 
adjustments on the 42 of the uk business already owned was reflected in the revaluation reserve 
on 14 october 2008 regus plc acquired the entire share capital of regus group plc in exchange for the issue of new shares of regus 
plc on the basis of one share in regus plc for one share held previously in regus group plc at the date of the transaction regus plc 
had nominal assets and liabilities and therefore the transaction was accounted for as a reverse acquisition of regus plc by regus 
group plc consequently no fair value acquisition adjustments were required and the aggregate of the group reserves have been 
attributed to regus plc 
ifrss not yet effective 
the following ifrss have been issued but have not been applied by the group in these consolidated financial statements as they are 
effective for years beginning on or after 1 january 2015 or have not yet been endorsed by the european union their adoption is not 
expected to have a material effect on the consolidated financial statements 
ias 16 revaluation method – proportionate restatement of accumulated depreciation – amendments to ias 16 1 january 2016
ias 38 revaluation method – proportionate restatement of accumulated amortisation – amendments to ias 38 1 january 2016
ifrs 11 accounting for acquisitions of interests in joint operations – amendments to ifrs 11 1 january 2016
ifrs 14 regulatory deferral accounts 1 january 2016
ifrs 15 revenue from contracts with customers 1 january 2017
ifrs 9 financial instruments 1 january 2018
the group did not adopt any standards interpretations and amendments to standards which were available for optional early 
adoption and relevant to the group the group will adopt the above standards or amendments in the year in which they become 
effective andor endorsed by the european union whichever is later  
basis of consolidation 
subsidiaries are entities controlled by the group control exists when the group controls an entity when it is exposed to or has the 
rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the 
entity the financial statements of subsidiaries are included in the consolidated financial statements from the date that control 
commences the results are consolidated until the date control ceases or the subsidiary qualifies as a disposal group at which point 
the assets and liabilities are carried at the lower of fair value less costs to sell and carrying value 
impairment of nonfinancial assets 
the carrying amounts of the group’s assets other than deferred tax assets are reviewed at each balance sheet date to determine 
whether there is any indication of impairment if any such indication exists the asset’s recoverable amount is estimated 
for goodwill intangible assets that have an indefinite useful life and intangible assets that are not yet available for use the 
recoverable amount was estimated at 31 october 2014 at each reporting date the group reviews the carrying amount of its non
financial assets to determine whether there is an indicator of impairment if any indicator is identified then the assets’ recoverable 
amount is reevaluated 
an impairment loss is recognised whenever the carrying amount of an asset or its cashgenerating unit exceeds its recoverable 
amount impairment losses are recognised in the income statement 
impairment losses recognised in respect of cashgenerating units are allocated first to reduce the carrying amount of any goodwill 
allocated to the cashgenerating unit and then to reduce the carrying amount of the other assets in the unit on a pro rata basis  
a cashgenerating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the 
cash inflows from other assets or groups of assets 
calculation of recoverable amount 
the recoverable amount of relevant assets is the greater of their fair value less costs to sell and value in use in assessing value in  
use the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects current market 
assessments of the time value of money and the risks specific to the asset for an asset that does not generate largely independent 
cash inflows the recoverable amount is determined for the cashgenerating unit to which the asset belongs 
goodwill 
all business combinations are accounted for using the purchase method goodwill is initially measured at cost being the excess  
of the aggregate of the consideration transferred and the amount recognised for noncontrolling interests and any previous interest 
held over the net identifiable assets acquired and liabilities assumed if the fair value of the net assets acquired is in excess of the 
aggregate consideration transferred the group reassesses whether it has correctly identified all of the assets acquired and all of  
the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date if the  
reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred then  
the gain is recognised in profit or loss  
positive goodwill is stated at cost less any provision for impairment in value an impairment test is carried out annually and in 
addition whenever indicators exist that the carrying amount may not be recoverable positive goodwill is allocated to cashgenerating 
units for the purpose of impairment testing 
business combinations that took place prior to the group’s transition date to ifrs on 1 january 2004 have not been restated under  
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governance financial statements strategic report
intangible assets 
intangible assets acquired separately from the business are capitalised at cost intangible assets acquired as part of an acquisition  
of a business are capitalised separately from goodwill if their fair value can be identified and measured reliably on initial recognition 
intangible assets are amortised on a straightline basis over the estimated useful life of the assets as follows 
brand – regus brand indefinite life
brand – other acquired brands 20 years
computer software  5 years
customer lists 2 years
management agreements minimum duration of the contract
amortisation of intangible assets is expensed through administration expenses in the income statement 
acquisitions of noncontrolling interests 
acquisitions of noncontrolling interests are accounted for as transactions with owners in their capacity as owners and therefore no 
goodwill is recognised as a result adjustments to noncontrolling interests arising from transactions that do not involve the loss of 
control are based on a proportionate amount of the net assets of the subsidiary 
assets held for sale 
assets held for sale are measured at the lower of the carrying value of the identified assets and its fair value less cost to sell 
leases 
plant and equipment leases for which the group assumes substantially all of the risks and rewards of ownership are classified as 
finance leases all other leases including all of the group’s property leases are categorised as operating leases 
finance leases 
plant and equipment acquired by way of a finance lease is capitalised at the commencement of the lease at the lower of its fair value 
and the present value of the minimum lease payments at inception future payments under finance leases are included in creditors 
net of any future finance charges minimum lease payments are apportioned between the finance charge and the reduction of the 
outstanding liability finance charges are recognised in the income statement over the lease term so as to produce a constant periodic 
rate of interest on the remaining balance of the liability 
operating leases 
minimum lease payments under operating leases are recognised in the income statement on a straightline basis over the lease term 
lease incentives and rent free periods are included in the calculation of minimum lease payments the commencement of the lease 
term is the date from which the group is entitled to use the leased asset the lease term is the noncancellable period of the lease 
together with any further periods for which the group has the option to continue to lease the asset and when at the inception of the 
lease it is reasonably certain that the group will exercise that option 
contingent rentals include rent increases based on future inflation indices or nonguaranteed rental payments based on centre 
turnover or profitability and are excluded from the calculation of minimum lease payments contingent rentals are recognised in the 
income statement as they are incurred 
onerous lease provisions are an estimate of the net amounts payable under the terms of the lease to the first break point discounted 
at an appropriate pretax rate that reflects the time value of money and the risks specific to the liability 
property plant and equipment 
property plant and equipment is stated at cost less accumulated depreciation and any impairment in value depreciation is calculated 
on a straightline basis over the estimated useful life of the assets as follows  
buildings 50 years
fixtures and fittings 10 years
furniture  10 years
office equipment and telephones 5 years
motor vehicles 4 years
computer hardware 3 – 5 years
revenue 
revenue from the provision of services to customers is measured at the fair value of consideration received or receivable excluding 
sales taxes where rent free periods are granted to customers rental income is spread on a straightline basis over the length of the 
customer contract 
workstations 
workstation revenue is recognised when the provision of the service is rendered amounts invoiced in advance are deferred and 
recognised as revenue upon provision of the service 
customer service income 
service income including the rental of meeting rooms is recognised as services are rendered in circumstances where regus acts  
as an agent for the sale and purchase of goods to customers only the commission fee earned is recognised as revenue 
management and franchise fees 
fees received for the provision of initial and subsequent services are recognised as revenue as the services are rendered fees 
charged for the use of continuing rights granted by the agreement or for other services provided during the period of the agreement 
are recognised as revenue as the services are provided or the rights used 
   58 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
58 regus plc annual report and accounts 2014 
2 accounting policies continued 
membership card income 
revenue from the sale of membership cards is deferred and recognised over the period that the benefits of the membership card  
are expected to be provided 
these categories represent all material sources of revenue earned from the provision of global workplace solutions 
employee benefits 
the group’s major pension plans are of the defined contribution type for these plans the group’s contribution and other paid and 
unpaid benefits earned by the employees are charged to the income statement as incurred 
the cost of providing benefits under the defined benefit plan is determined using the projected unit credit method 
remeasurements comprising actuarial gains and losses the effect of the asset ceiling excluding net interest and the return on plan 
assets excluding net interest are recognised immediately in the statement of financial position with a corresponding debit or credit 
to retained earnings through other comprehensive income oci in the period in which they occur remeasurements are not 
reclassified to profit or loss in subsequent periods 
service costs are recognised in profit or loss and include current and past service costs as well as gains and losses on curtailments 
net interest is calculated by applying the discount rate to the net defined benefit liability or asset the group recognises the following 
changes in the net defined benefit obligation under ‘cost of sales’ ‘selling general and administration expenses’ and ‘research and 
development expenses’ in the consolidated income statement service costs comprising current service costs pastservice costs and 
gains and losses on curtailments and nonroutine settlements 
settlements of defined benefit schemes are recognised in the period in which the settlement occurs 
sharebased payments 
the share option programme entitles certain employees and directors to acquire shares of the ultimate parent company these 
awards are granted by the ultimate parent 
the fair value of options granted is recognised as an employee expense with a corresponding increase in equity the fair value is 
measured at grant date and spread over the period during which the employees become unconditionally entitled to the options  
the fair value of the options granted is measured using the blackscholes valuation model or the monte carlo method taking into 
accounts the terms and conditions upon which the options were granted 
the amount recognised as an expense is adjusted to reflect the actual number of share options that vest except where forfeiture  
is due only to share prices not achieving the threshold for vesting 
share appreciation rights cip are also granted by the company to certain employees the fair value of the amount payable to the 
employee is recognised as an expense with a corresponding increase in equity the fair value is initially recognised at grant date  
and spread over the period during which the employees become unconditionally entitled to payment the fair value of the share 
appreciation rights is measured based on the monte carlo valuation model taking into account the terms and conditions upon which 
the instruments were granted  
taxation 
tax on the profit for the year comprises current and deferred tax tax is recognised in the income statement except to the extent that  
it relates to items recognised directly in equity in which case it is recognised in equity 
current tax is the expected tax payable on the taxable income for the year using tax rates enacted or substantively enacted at the 
balance sheet date and any adjustment to tax payable in respect of previous years 
deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting 
purposes and the amounts used for taxation purposes the following temporary differences are not provided for the initial 
recognition of goodwill the initial recognition of assets and liabilities that affect neither accounting nor taxable profit other than in a 
business combination and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the 
foreseeable future the amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying 
amount of assets and liabilities using tax rates enacted or substantively enacted at the balance sheet date 
a deferred tax asset is recognised for all unused tax losses only to the extent that it is probable that future taxable profits will be 
available against which the asset can be utilised 
deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax 
liabilities and when they relate to income taxes levied by the same taxation authority and the group intends to settle its current tax 
assets and liabilities on a net basis 
provisions 
a provision is recognised in the balance sheet when the group has a present legal or constructive obligation as a result of a past  
event that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation 
restructuring provisions are made for direct expenditures of a business reorganisation where the plans are sufficiently detailed and 
well advanced and where the appropriate communication to those affected has been undertaken at the balance sheet date 
provision is made for onerous contracts to the extent that the unavoidable costs of meeting the obligations under a contract exceed 
the economic benefits expected to be delivered discounted using an appropriate weighted average cost of capital 
 
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governance financial statements strategic report
net finance expenses 
interest charges and income are accounted for in the income statement on an accruals basis financing transaction costs that relate  
to financial liabilities are charged to interest expense using the effective interest rate method and are recognised within the carrying 
value of the related financial liability on the balance sheet fees paid for the arrangement of credit facilities are recognised as a 
prepayment and recognised through the finance expense over the term of the facility in the event of a facility being drawn the 
relevant unamortised portion of the fee is recognised within the carrying value of the financial liability and charged to the interest 
expense using the effective interest rate method 
where assets or liabilities on the group balance sheet are carried at net present value the increase in the amount due to unwinding 
the discount is recognised as a finance expense or finance income as appropriate 
costs arising on bank guarantees and letters of credit and foreign exchange gains or losses are included in other finance costs  
note 7 
interest bearing borrowings and other financial liabilities 
financial liabilities including interest bearing borrowings are recognised initially at fair value less attributable transaction costs 
subsequent to initial recognition financial liabilities are stated at amortised cost with any difference between cost and redemption 
value being recognised in the income statement over the period of the borrowings on an effective interest rate method 
the group derecognises financial liabilities when the group’s obligations are discharged cancelled or expired 
financial liabilities are classified as financial liabilities at fair value through profit or loss where the liability is either held for trading 
or is designated as held at fair value through profit or loss on initial recognition financial liabilities at fair value through profit or loss 
are stated at fair value with any resultant gain or loss recognised in the income statement 
financial assets 
financial assets are classified either at fair value through profit or loss held to maturity investments available for sale financial 
assets or loans and receivables the classification depends on the nature and purpose of the financial assets and is determined  
on initial recognition 
financial assets at fair value through profit or loss are measured at fair value and changes therein including any interest or dividend 
income are recognised in profit or loss 
heldtomaturity financial assets are initially recognised at fair value plus any directly attributable transaction costs subsequent 
to initial recognition they are measured at amortised costs using the effective interest rate method  
available for sale financial assets are initially recognised at fair value plus any directly attributable transaction costs subsequent  
to initial recognition they are measured at fair value and changes therein other than impairment losses and foreign currency 
differences on debt instruments are recognised in oci and accumulated in the fair value reserve when these assets are 
derecognised the gain or loss accumulated in equity is reclassified to profit or loss 
trade and other receivables that have fixed or determinable payments that are not quoted in an active market are classified  
as loans and receivables loans and receivables are measured at amortised cost using the effective interest rate method less any 
impairment interest income is recognised by applying the effective interest rate except for shortterm receivables when recognition 
would be immaterial 
foreign currency transactions and foreign operations 
transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction monetary assets  
and liabilities denominated in foreign currencies are translated using the closing rate of exchange at the balance sheet date and the 
gains or losses on translation are taken to the income statement nonmonetary assets and liabilities that are measured in terms of 
historical cost in a foreign currency are translated using the exchange rate at the date of the transaction the results and cash flows  
of foreign operations are translated using the average rate for the period assets and liabilities including goodwill and fair value 
adjustments of foreign operations are translated using the closing rate with all exchange differences arising on consolidation being 
recognised in other comprehensive income and presented in the foreign currency translation reserve in equity exchange differences 
are released to the income statement on disposal 
cash and cash equivalents 
cash and cash equivalents comprise cash at bank and in hand and are subject to an insignificant risk of changes in value 
derivative financial instruments 
the group’s policy on the use of derivative financial instruments can be found in note 23 derivative financial instruments are 
measured initially at fair value and changes in the fair value are recognised through profit or loss unless the derivative financial 
instrument has been designated as a cash flow hedge whereby the effective portion of changes in the fair value are deferred in equity 
foreign currency translation rates 
at 31 december annual average
2014 2013 2014 2013
us dollar 156 165 164 157
euro 128 120 125 118
japanese yen 186 174 175 153
 
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net finance expenses 
interest charges and income are accounted for in the income statement on an accruals basis financing transaction costs that relate  
to financial liabilities are charged to interest expense using the effective interest rate method and are recognised within the carrying 
value of the related financial liability on the balance sheet fees paid for the arrangement of credit facilities are recognised as a 
prepayment and recognised through the finance expense over the term of the facility in the event of a facility being drawn the 
relevant unamortised portion of the fee is recognised within the carrying value of the financial liability and charged to the interest 
expense using the effective interest rate method 
where assets or liabilities on the group balance sheet are carried at net present value the increase in the amount due to unwinding 
the discount is recognised as a finance expense or finance income as appropriate 
costs arising on bank guarantees and letters of credit and foreign exchange gains or losses are included in other finance costs  
note 7 
interest bearing borrowings and other financial liabilities 
financial liabilities including interest bearing borrowings are recognised initially at fair value less attributable transaction costs 
subsequent to initial recognition financial liabilities are stated at amortised cost with any difference between cost and redemption 
value being recognised in the income statement over the period of the borrowings on an effective interest rate method 
the group derecognises financial liabilities when the group’s obligations are discharged cancelled or expired 
financial liabilities are classified as financial liabilities at fair value through profit or loss where the liability is either held for trading 
or is designated as held at fair value through profit or loss on initial recognition financial liabilities at fair value through profit or loss 
are stated at fair value with any resultant gain or loss recognised in the income statement 
financial assets 
financial assets are classified either at fair value through profit or loss held to maturity investments available for sale financial 
assets or loans and receivables the classification depends on the nature and purpose of the financial assets and is determined  
on initial recognition 
financial assets at fair value through profit or loss are measured at fair value and changes therein including any interest or dividend 
income are recognised in profit or loss 
heldtomaturity financial assets are initially recognised at fair value plus any directly attributable transaction costs subsequent 
to initial recognition they are measured at amortised costs using the effective interest rate method  
available for sale financial assets are initially recognised at fair value plus any directly attributable transaction costs subsequent  
to initial recognition they are measured at fair value and changes therein other than impairment losses and foreign currency 
differences on debt instruments are recognised in oci and accumulated in the fair value reserve when these assets are 
derecognised the gain or loss accumulated in equity is reclassified to profit or loss 
trade and other receivables that have fixed or determinable payments that are not quoted in an active market are classified  
as loans and receivables loans and receivables are measured at amortised cost using the effective interest rate method less any 
impairment interest income is recognised by applying the effective interest rate except for shortterm receivables when recognition 
would be immaterial 
foreign currency transactions and foreign operations 
transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction monetary assets  
and liabilities denominated in foreign currencies are translated using the closing rate of exchange at the balance sheet date and the 
gains or losses on translation are taken to the income statement nonmonetary assets and liabilities that are measured in terms of 
historical cost in a foreign currency are translated using the exchange rate at the date of the transaction the results and cash flows  
of foreign operations are translated using the average rate for the period assets and liabilities including goodwill and fair value 
adjustments of foreign operations are translated using the closing rate with all exchange differences arising on consolidation being 
recognised in other comprehensive income and presented in the foreign currency translation reserve in equity exchange differences 
are released to the income statement on disposal 
cash and cash equivalents 
cash and cash equivalents comprise cash at bank and in hand and are subject to an insignificant risk of changes in value 
derivative financial instruments 
the group’s policy on the use of derivative financial instruments can be found in note 23 derivative financial instruments are 
measured initially at fair value and changes in the fair value are recognised through profit or loss unless the derivative financial 
instrument has been designated as a cash flow hedge whereby the effective portion of changes in the fair value are deferred in equity 
foreign currency translation rates 
at 31 december annual average
2014 2013 2014 2013
us dollar 156 165 164 157
euro 128 120 125 118
japanese yen 186 174 175 153
 
   60 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
60 regus plc annual report and accounts 2014 
3 segmental analysis – statutory basis 
an operating segment is a component of the group that engages in business activities from which it may earn revenues and incur 
expenses including those that relate to transactions with other operating segments an operating segment’s results are reviewed 
regularly by the chief operating decision maker the board of directors of the group to make decisions about resources to be 
allocated to the segment and assess its performance and for which discrete financial information is available 
the business is run on a worldwide basis but managed through four principal geographical segments americas europe middle  
east and africa emea asia pacific and the united kingdom the united kingdom segment does not include the group’s nontrading 
holding and corporate management companies that are based in the uk and the emea segment does not include the group’s non
trading head office and holding companies that are based in luxembourg and switzerland the results of business centres in each  
of these regions form the basis for reporting geographical results to the chief operating decision maker all reportable segments are 
involved in the provision of global workplace solutions 
the group’s reportable segments operate in different markets and are managed separately because of the different economic 
characteristics that exist in each of those markets each reportable segment has its own discrete senior management team 
responsible for the performance of the segment 
the accounting policies of the operating segments are the same as those described in the annual report and accounts for regus plc 
for the year ended 31 december 2013 the performance of each segment is assessed on the basis of the segment operating profit 
which excludes internal revenue corporate overheads and foreign exchange gains and losses arising on transactions with other 
operating segments 
 americas emea asia pacific united kingdom 
all other operating 
segments total 
 
2014  
£m 
2013  
£m 
2014  
£m 
2013
£m 
2014
£m 
2013
£m 
2014
£m 
2013
£m 
2014  
£m 
2013  
£m 
2014
£m 
2013
£m 
revenues from  
external customers 6779 6397 3695 3379 2420 2251 3861 3291 06 17 16761 15335
revenues from  
internal customers 03 03 05 08 – 03 12 13 – – 20 27
segment revenues 6782 6400 3700 3387 2420 2254 3873 3304 06 17 16781 15362
gross profit  
centre contribution 1493 1573 790 806 606 576 940 797 11 16 3840 3768
reportable  
segment profit 776 713 244 297 266 279 688 396 90 53 1884 1632
share of profit of  
joint ventures – – 17 12 – – 09 11 – – 08 01
finance expense 13 06 02 01 07 05 21 22 – – 43 34
finance income – – 03 02 01 – 01 – – – 03 02
depreciation and 
amortisation 595 458 178 148 147 131 185 171 74 40 1179 948
taxation 
incomecharge 13 25 59 51 59 37 22 24 89 09 172 146
assets 10174 9443 3476 3444 2570 2113 5799 5085 17 19 22036 20104
liabilities 9159 6322 4359 4198 2438 1941 5821 5309 03 06 21780 17776
net 
assetsliabilities 1015 3121 883 754 132 172 22 224 14 13 256 2328
noncurrent  
asset additions 1189 1728 353 296 311 330 198 149 – – 2051 2503
revenue in the other segmental category is generated from services related to the provision of workplace solutions including fees 
earned from franchise agreements and commissions earned from the sale of outsourced workplace solution products revenue from 
internal customers is determined by reference to current market prices 
4 segmental analysis – entitywide disclosures 
the group’s primary activity and only business segment is the provision of global workplace solutions and therefore all revenue is 
attributed to a single group of similar products and services it is not meaningful to separate this group into further categories of 
products revenue is recognised where the service is provided 
the group has a diversified customer base and no single customer contributes a material percentage of the group’s revenue 
the group’s revenue from external customers and noncurrent assets analysed by foreign country is as follows 
2014 2013 
£m 
external 
revenue 
noncurrent 
assets
a
 
external  
revenue 
noncurrent
assets
a
 
country of domicile – luxembourg 49 15 37 15
united states of america 5249 5756 4926 4819
united kingdom 3861 2757 3295 2541
all other countries 7602 4659 7077 4017
 16761 13187 15335 11392
a excluding deferred tax assets  
 
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 2014
£m revenue 
gross profit 
centre 
contribution 
operating 
profit 
share of 
jv profit 
finance 
expense 
finance 
income 
depreciation 
and 
amortisation 
profit 
before tax 
reportable segment results 16781 3840 1884 08 43 03 1179 1852
exclude internal revenue 20 20 – – – – – –
corporate overheads – 11 849 – 121 02 26 972
foreign exchange gains  
and losses – – – – 09 – – 09
published group total 16761 3831 1035 08 173 01 1205 871
 
 2013
£m revenue 
gross profit 
centre 
contribution 
operating 
profit 
share of 
jv profit 
finance 
expense 
finance 
income 
depreciation 
and 
amortisation 
profit 
before tax 
reportable segment results 15362 3768 1632 01 34 02 948 1601
exclude internal revenue 27 27 – – – – – –
corporate overheads – 03 725 – 59 10 27 774
foreign exchange gains  
and losses – – – – 12 – – 12
published group total 15335 3738 907 01 105 12 975 815
 
2014 
£m assets liabilities 
net assets
liabilities 
reportable segment results 22036 21780 256
exclude segmental intercompany amounts 4055 10125 6070
corporate overheads assets and liabilities exclu ding amounts due tofrom reportable segments 
cash 300 – 300
deferred taxation 236 – 236
bank and other loans – 2036 2036
other 950 402 548
published group total 19467 14093 5374
 
2013 
£m assets liabilities 
net assets 
liabilities 
reportable segment results 20104 17776 2328
exclude segmental intercompany amounts 4749 8108 3359
corporate overheads assets and liabilities exclu ding amounts due tofrom reportable segments 
cash 475 – 475
deferred taxation 194 – 194
bank and other loans – 1342 1342
other 399 271 128
published group total 16423 11281 5142
 
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 2014
£m revenue 
gross profit 
centre 
contribution 
operating 
profit 
share of 
jv profit 
finance 
expense 
finance 
income 
depreciation 
and 
amortisation 
profit 
before tax 
reportable segment results 16781 3840 1884 08 43 03 1179 1852
exclude internal revenue 20 20 – – – – – –
corporate overheads – 11 849 – 121 02 26 972
foreign exchange gains  
and losses – – – – 09 – – 09
published group total 16761 3831 1035 08 173 01 1205 871
 
 2013
£m revenue 
gross profit 
centre 
contribution 
operating 
profit 
share of 
jv profit 
finance 
expense 
finance 
income 
depreciation 
and 
amortisation 
profit 
before tax 
reportable segment results 15362 3768 1632 01 34 02 948 1601
exclude internal revenue 27 27 – – – – – –
corporate overheads – 03 725 – 59 10 27 774
foreign exchange gains  
and losses – – – – 12 – – 12
published group total 15335 3738 907 01 105 12 975 815
 
2014 
£m assets liabilities 
net assets
liabilities 
reportable segment results 22036 21780 256
exclude segmental intercompany amounts 4055 10125 6070
corporate overheads assets and liabilities exclu ding amounts due tofrom reportable segments 
cash 300 – 300
deferred taxation 236 – 236
bank and other loans – 2036 2036
other 950 402 548
published group total 19467 14093 5374
 
2013 
£m assets liabilities 
net assets 
liabilities 
reportable segment results 20104 17776 2328
exclude segmental intercompany amounts 4749 8108 3359
corporate overheads assets and liabilities exclu ding amounts due tofrom reportable segments 
cash 475 – 475
deferred taxation 194 – 194
bank and other loans – 1342 1342
other 399 271 128
published group total 16423 11281 5142
 
   62 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
62 regus plc annual report and accounts 2014 
5 operating profit 
operating profit has been arrived at after chargingcrediting 
 notes 
2014  
£m 
2013
£m 
depreciation on property plant and equipment   
owned assets 13 1070 871
finance leases 13 05 07
amortisation of intangibles 12 130 97
provision for bad debts 23 45 11
profitloss on disposal of property plant and equipment  09 09
exchange lossesgains recognised in the income statement – 01
rents payable in respect of operating leases   
property  5726 5276
contingent rents paid  265 248
equipment  24 21
amortisation of acquisition fair value adjustments  50 52
amortisation of partner contributions 266 216
amortisation of acquired lease fair value adjustments  52 49
staff costs 6 3346 3161
 
 
2014  
£m 
2013
£m 
fees payable to the group’s auditor for the audit of the group accounts 07 08
fees payable to the group’s auditor and its associates for other services 
the audit of the company’s subsidiaries pursuant to legislation 10 09
other services pursuant to legislation  
tax services – –
other services – 01
6 staff costs  
 
2014  
£m 
2013
£m 
the aggregate payroll costs were as follows  
wages and salaries 2819 2653
social security 456 443
pension costs 46 38
sharebased payments 25 27
 3346 3161
 
 
2014  
average  
full time 
equivalents 
2013
average 
full time 
equivalents 
the average number of persons employed by the group including executive directors analysed by 
category and geography was as follows  
centre staff 6159 5582
sales  marketing staff 601 787
finance staff 742 856
other staff 1198 1150
 8700 8375
  
americas 3065 3110
emea 1929 1724
asia pacific 1497 1255
united kingdom 1046 1151
corporate functions 1163 1135
 8700 8375
details of directors’ emoluments and interests are given on pages 38 to 45 in the remuneration report 
  
 
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7 net finance expense 
 
2014  
£m 
2013
£m 
interest payable and similar charges on bank loans and corporate borrowings 84 34
interest payable and similar charges on finance leases – –
total interest expense 84 34
other finance costs 70 51
unwinding of discount rates 19 20
total finance expense 173 105
total interest income 01 12
unwinding of discount rates – –
total finance income 01 12
net finance expense 172 93
8 taxation 
a analysis of charge in the year 
 
2014  
£m 
2013
£m 
current taxation  
corporate income tax 176 174
previously unrecognised tax losses and temporary differences 09 12 
underover provision in respect of prior years 39 24
total current taxation 206 138
deferred taxation  
origination and reversal of temporary differences 110 78
previously unrecognised tax losses and temporary differences 155 71
under provision in respect of prior years 11 01
total deferred taxation 34 08
tax charge on profit 172 146
b reconciliation of taxation charge 
2014 2013
£m  £m 
profit before tax 871 815 
tax on profit at 2922 2013 2922 255 292 238 292
tax effects of   
expenses not deductible for tax purposes 95 109 33 40
items not chargeable for tax purposes 248 285 194 238
recognition of previously unrecognised deferred tax assets 164 188  83 102
movements in temporary differences in the year not recognised in 
deferred tax 202 233 176 216
adjustment to tax charge in respect of previous years 50 57  23 28
differences in tax rates on overseas earnings 18 20  01 01
 172 198 146 179
the applicable tax rate is determined based on the tax rate in luxembourg which was the statutory tax rate applicable in the country 
of domicile of the parent company of the group for the financial year 
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7 net finance expense 
 
2014  
£m 
2013
£m 
interest payable and similar charges on bank loans and corporate borrowings 84 34
interest payable and similar charges on finance leases – –
total interest expense 84 34
other finance costs 70 51
unwinding of discount rates 19 20
total finance expense 173 105
total interest income 01 12
unwinding of discount rates – –
total finance income 01 12
net finance expense 172 93
8 taxation 
a analysis of charge in the year 
 
2014  
£m 
2013
£m 
current taxation  
corporate income tax 176 174
previously unrecognised tax losses and temporary differences 09 12 
underover provision in respect of prior years 39 24
total current taxation 206 138
deferred taxation  
origination and reversal of temporary differences 110 78
previously unrecognised tax losses and temporary differences 155 71
under provision in respect of prior years 11 01
total deferred taxation 34 08
tax charge on profit 172 146
b reconciliation of taxation charge 
2014 2013
£m  £m 
profit before tax 871 815 
tax on profit at 2922 2013 2922 255 292 238 292
tax effects of   
expenses not deductible for tax purposes 95 109 33 40
items not chargeable for tax purposes 248 285 194 238
recognition of previously unrecognised deferred tax assets 164 188  83 102
movements in temporary differences in the year not recognised in 
deferred tax 202 233 176 216
adjustment to tax charge in respect of previous years 50 57  23 28
differences in tax rates on overseas earnings 18 20  01 01
 172 198 146 179
the applicable tax rate is determined based on the tax rate in luxembourg which was the statutory tax rate applicable in the country 
of domicile of the parent company of the group for the financial year 
   64 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
64 regus plc annual report and accounts 2014 
8 taxation continued 
c factors that may affect the future tax charge 
unrecognised tax losses to carry forward against certain future overseas corporation tax liabilities have the following expirat ion dates 
 
2014  
£m 
2013
£m 
2014 – 13
2015 07 07
2016 32 37
2017 136 60
2018 125 141
2019 177 18
2020 291 297
2021 97 110
2022 and later 458 495
 1323 1178
available indefinitely 2108 2057
tax losses available to carry forward 3431 3235
amount of tax losses recognised in the deferred tax asset 1071 1181
total tax losses available to carry forward 4502 4416
the following deferred tax assets have not been recognised due to uncertainties over recoverability 
 
2014  
£m 
2013
£m 
intangibles 304 360
accelerated capital allowances 135 148
tax losses 910 870
rent 113 93
shortterm timing differences 66 73
 1528 1544
estimates relating to deferred tax assets including assumptions about future profitability are reevaluated at the end of each  
reporting period 
d corporation tax 
 
2014  
£m 
2013
£m 
corporation tax payable 103 62
corporation tax receivable 125 81
  
 
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governance financial statements strategic report
e deferred taxation 
the movement in deferred tax is analysed below 
 
intangibles 
£m 
property 
plant and 
equipment 
£m 
tax losses 
£m 
rent  
£m 
shortterm 
temporary 
differences  
£m 
total 
£m 
deferred tax asset   
at 1 january 2013 357 218 358 219 99 339
acquisitions 03 – 03 – – 06
current year movement 01 79 – 72 01 07
prior year movement 04 10 09 13 02 08
transfers 01 04 01 – 08 10
exchange movement 15 01 05 07 08 06
at 1 january 2014 335 132 364 271 98 334
acquisitions – – 17 – 04 13
current year movement 03 40 47 80 52 48
prior year movement 19 02 22 02 12 11
transfers – 04 02 02 07 07
exchange movement 31 16 04 16 04 09
at 31 december 2014 344 114 314 367 51 400
deferred tax liability   
at 1 january 2013 05 05 – 01 04 13
current year movement – 01 01 – – –
prior year movement 02 04 – – 01 07
transfers 01 04 01 – 08 10
exchange movement – – – – – –
at 1 january 2014 02 06 02 01 11 16
current year movement – 07 01 – 05 03
prior year movement – 01 – – 01 –
transfers – 04 01 02 06 07
exchange movement – 05 01 – 02 04
at 31 december 2014 02 11 03 03 15 22
the movement in deferred taxes included above are after the offset of deferred tax assets and deferred tax liabilities where there  
is a legally enforceable right to set off and they relate to income taxes levied by the same taxation authority 
deferred tax assets recognised on shortterm temporary differences consist predominantly of provisions deductible when paid and 
sharebased payments deferred tax assets have been recognised in excess of deferred tax liabilities on the basis that there are 
forecast taxable profits in the entities concerned 
at the balance sheet date the temporary difference arising from unremitted earnings of overseas subsidiaries was £2498m  
2013 £1508m the only tax that would arise on these reserves would be noncreditable withholding tax 
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e deferred taxation 
the movement in deferred tax is analysed below 
 
intangibles 
£m 
property 
plant and 
equipment 
£m 
tax losses 
£m 
rent  
£m 
shortterm 
temporary 
differences  
£m 
total 
£m 
deferred tax asset   
at 1 january 2013 357 218 358 219 99 339
acquisitions 03 – 03 – – 06
current year movement 01 79 – 72 01 07
prior year movement 04 10 09 13 02 08
transfers 01 04 01 – 08 10
exchange movement 15 01 05 07 08 06
at 1 january 2014 335 132 364 271 98 334
acquisitions – – 17 – 04 13
current year movement 03 40 47 80 52 48
prior year movement 19 02 22 02 12 11
transfers – 04 02 02 07 07
exchange movement 31 16 04 16 04 09
at 31 december 2014 344 114 314 367 51 400
deferred tax liability   
at 1 january 2013 05 05 – 01 04 13
current year movement – 01 01 – – –
prior year movement 02 04 – – 01 07
transfers 01 04 01 – 08 10
exchange movement – – – – – –
at 1 january 2014 02 06 02 01 11 16
current year movement – 07 01 – 05 03
prior year movement – 01 – – 01 –
transfers – 04 01 02 06 07
exchange movement – 05 01 – 02 04
at 31 december 2014 02 11 03 03 15 22
the movement in deferred taxes included above are after the offset of deferred tax assets and deferred tax liabilities where there  
is a legally enforceable right to set off and they relate to income taxes levied by the same taxation authority 
deferred tax assets recognised on shortterm temporary differences consist predominantly of provisions deductible when paid and 
sharebased payments deferred tax assets have been recognised in excess of deferred tax liabilities on the basis that there are 
forecast taxable profits in the entities concerned 
at the balance sheet date the temporary difference arising from unremitted earnings of overseas subsidiaries was £2498m  
2013 £1508m the only tax that would arise on these reserves would be noncreditable withholding tax 
   66 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
66 regus plc annual report and accounts 2014 
9 earnings per ordinary share basic and diluted 
 2014 2013
profit attributable to equity shareholders of the parent £m 699 669
weighted average number of shares outstanding during the year 944081638 943775413
average market price of one share during the year 19594p 16956p
weighted average number of shares under option during the year 26613538 21184505
exercise price for shares under option during the year 8273p 7867p
 
profit earnings per share
 
2014
£m 
2013  
£m 
2014  
pence 
2013
pence 
basic and diluted profit for the year attributable to shareholders and 
basic earnings per share 699 669 74 71
diluted earnings per share  72 70
weighted average number of shares for basic eps number 944081638 943775413
weighted average number of shares under option during the year 26613538 21184505
weighted average number of shares that would have been issued at 
average market price  4038193 5639033
weighted average number of awards under the cip and ltip 6157990 3014273
weighted average number of shares for diluted eps number 972814973 962335158
options are considered dilutive when they would result in the issue of ordinary shares for less than the market price of ordinary 
shares in the period the amount of the dilution is taken to be the average market price of shares during the period minus the  
issue price  
10 dividends 
 2014 2013
dividends per ordinary share proposed  275p 25p 
interim dividends per ordinary share declared and paid during the year 125p 11p
dividends of £354m were paid during the year 2013 £311m the company has proposed to shareholders that a final dividend of 
275p per share will be paid 2013 25p subject to shareholder approval it is expected that the dividend will be paid on 29 may 2015 
11 goodwill 
 £m
cost 
at 1 january 2013 3170
recognised on acquisition of subsidiaries 1316
exchange differences 99
at 1 january 2014 4387
recognised on acquisition of subsidiaries 618
transferred to assets held for sale note 17 103
exchange differences 70
at 31 december 2014 4972
net book value 
at 1 january 2014 4387
at 31 december 2014 4972
cashgenerating units cgus comprising individual business centres are grouped by country of operation for the purpose of carrying 
out impairment reviews of noncurrent assets as this is the lowest level at which goodwill can be assessed goodwill acquired through 
business combinations is held at a country level and is subject to impairment reviews based on the cash flows of these cgus 
the goodwill attributable to the reportable business segments is as follows 
 
2014  
£m 
2013
£m 
carrying amount of goodwill included within the americas business segment 2149 2030
carrying amount of goodwill included within the emea business segment 723 437
carrying amount of goodwill included within the asia pacific business segment 297 230
carrying amount of goodwill included within the uk business segment 1803 1690
 4972 4387
  
 
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governance financial statements strategic report
the carrying value of goodwill and indefinite life intangibles allocated to two cgus the usa and the uk is material relative to the 
total carrying value comprising 751 of the total the remaining 249 of the carrying value is allocated to a further 36 countries  
36 cashgenerating units the goodwill and indefinite life intangibles allocated to the usa and the uk cashgenerating units are  
set out below 
 
goodwill 
£m 
intangible  
assets  
£m 
2014  
£m 
2013 
£m 
usa 1933 – 1933 1824
uk 1803 112 1915 1802
other cashgenerating units 1236 – 1236 873
 4972 112 5084 4499
the indefinite lived intangible asset relates to the brand value arising from the acquisition of the remaining 58 of the uk business  
in the year ended 31 december 2006 see note 12 
the value in use for each cgu has been determined using a model which derives the individual value in use for each unit from the  
value in use of the group as a whole although the model includes budgets and forecasts prepared by management it also reflects 
external factors such as capital market risk pricing as reflected in the market capitalisation of the group and prevailing tax rates  
which have been used to determine the risk adjusted discount rate for the group management believes that the projected cash  
flows are a reasonable reflection of the likely outcomes over the medium to long term in the event that trading conditions deteriorate 
beyond the assumptions used in the projected cash flows it is also possible that impairment charges could arise in future periods 
the following key assumptions have been used in calculating value in use for each group of cgus 
• future cash flows are based on the budget for 2014 approved by the board the model excludes cost savings and restructurings  
that are anticipated but had not been committed to at the date of the determination of the value in use thereafter forecasts have 
been prepared by management for a further four years from 2014 that reflect an average annual growth rate of 3 2013 3  
• these forecasts exclude the impact of both organic and acquisitive growth expected to take place in future periods management 
consider these projections to be a reasonable projection of margins expected at the midcycle position cash flows beyond 2018 
have been extrapolated using a 2 growth rate which management believes is a reasonable longterm growth rate for any of the 
markets in which the relevant cgus operate a terminal value is included in the assessment reflecting the group’s expectation  
that it will continue to operate in these markets and the longterm nature of the businesses 
• the group applies a country specific pretax discount rate to the pretax cash flows for each cgu the country specific discount rate 
is based on the underlying weighted average cost of capital wacc for the group the group wacc is then adjusted for each cgu  
to reflect the assessed market risk specific to that country the group pretax wacc decreased marginally from 136 in 2013 to 
124 in 2014 posttax wacc 100 the cgu specific pretax wacc reflecting the respective market risk adjustment has been 
set between 113 and 172 2013 123 to 186 
the amount by which the value in use exceeds the carrying amount of the cgus are sufficiently large to enable the directors to 
conclude that a reasonably possible change in the key assumptions would not result in an impairment charge in any of the cgus 
foreseeable events are unlikely to result in a change in the projections of such a significant nature as to result in the cashgenerating 
units carrying amount exceeding their recoverable amount the forecast models used in assessing the impairment of goodwill are 
based on the related business centre structure at the end of the year these models therefore do not reflect the expected 
improvement in margin as new centres mature 
the key assumptions used in the us model forecasts a centre contribution of 22 with an average centre contribution of 22 over 
the next five years revenue and costs grow at 3 per annum from 2014 maintaining a terminal 2019 centre gross margin of 22 
thereafter a 2 longterm growth rate is assumed on revenue and cost into perpetuity the cash flows have been discounted using  
a pretax discount rate of 15 2013 17 
the uk model forecasts a 2015 centre contribution of 24 with an average centre contribution of 24 over the next five years 
revenue and costs grow at 3 per annum from 2014 maintaining a terminal 2019 centre gross margin of 24 thereafter a 2  
longterm growth rate is assumed on revenue and cost into perpetuity the cash flows have been discounted using a pretax discount 
rate of 13 2013 14 
management has considered the following sensitivities 
market growth and wipow – management has considered the impact of a variance in market growth and wipow the value in use 
calculation shows that if the longterm growth rate was reduced to nil the recoverable amount of the us and uk cgus would still be 
greater than their carrying value 
discount rate – management has considered the impact of an increase in the discount rate applied to the calculation the valueinuse 
calculation shows that for the recoverable amount of the cgu to be less than its carrying value the pretax discount rate would have 
to be increased to 23 2013 22 for the us cgu and 35 2013 22 for the uk cgu 
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governance financial statements strategic report
the carrying value of goodwill and indefinite life intangibles allocated to two cgus the usa and the uk is material relative to the 
total carrying value comprising 751 of the total the remaining 249 of the carrying value is allocated to a further 36 countries  
36 cashgenerating units the goodwill and indefinite life intangibles allocated to the usa and the uk cashgenerating units are  
set out below 
 
goodwill 
£m 
intangible  
assets  
£m 
2014  
£m 
2013 
£m 
usa 1933 – 1933 1824
uk 1803 112 1915 1802
other cashgenerating units 1236 – 1236 873
 4972 112 5084 4499
the indefinite lived intangible asset relates to the brand value arising from the acquisition of the remaining 58 of the uk business  
in the year ended 31 december 2006 see note 12 
the value in use for each cgu has been determined using a model which derives the individual value in use for each unit from the  
value in use of the group as a whole although the model includes budgets and forecasts prepared by management it also reflects 
external factors such as capital market risk pricing as reflected in the market capitalisation of the group and prevailing tax rates  
which have been used to determine the risk adjusted discount rate for the group management believes that the projected cash  
flows are a reasonable reflection of the likely outcomes over the medium to long term in the event that trading conditions deteriorate 
beyond the assumptions used in the projected cash flows it is also possible that impairment charges could arise in future periods 
the following key assumptions have been used in calculating value in use for each group of cgus 
• future cash flows are based on the budget for 2014 approved by the board the model excludes cost savings and restructurings  
that are anticipated but had not been committed to at the date of the determination of the value in use thereafter forecasts have 
been prepared by management for a further four years from 2014 that reflect an average annual growth rate of 3 2013 3  
• these forecasts exclude the impact of both organic and acquisitive growth expected to take place in future periods management 
consider these projections to be a reasonable projection of margins expected at the midcycle position cash flows beyond 2018 
have been extrapolated using a 2 growth rate which management believes is a reasonable longterm growth rate for any of the 
markets in which the relevant cgus operate a terminal value is included in the assessment reflecting the group’s expectation  
that it will continue to operate in these markets and the longterm nature of the businesses 
• the group applies a country specific pretax discount rate to the pretax cash flows for each cgu the country specific discount rate 
is based on the underlying weighted average cost of capital wacc for the group the group wacc is then adjusted for each cgu  
to reflect the assessed market risk specific to that country the group pretax wacc decreased marginally from 136 in 2013 to 
124 in 2014 posttax wacc 100 the cgu specific pretax wacc reflecting the respective market risk adjustment has been 
set between 113 and 172 2013 123 to 186 
the amount by which the value in use exceeds the carrying amount of the cgus are sufficiently large to enable the directors to 
conclude that a reasonably possible change in the key assumptions would not result in an impairment charge in any of the cgus 
foreseeable events are unlikely to result in a change in the projections of such a significant nature as to result in the cashgenerating 
units carrying amount exceeding their recoverable amount the forecast models used in assessing the impairment of goodwill are 
based on the related business centre structure at the end of the year these models therefore do not reflect the expected 
improvement in margin as new centres mature 
the key assumptions used in the us model forecasts a centre contribution of 22 with an average centre contribution of 22 over 
the next five years revenue and costs grow at 3 per annum from 2014 maintaining a terminal 2019 centre gross margin of 22 
thereafter a 2 longterm growth rate is assumed on revenue and cost into perpetuity the cash flows have been discounted using  
a pretax discount rate of 15 2013 17 
the uk model forecasts a 2015 centre contribution of 24 with an average centre contribution of 24 over the next five years 
revenue and costs grow at 3 per annum from 2014 maintaining a terminal 2019 centre gross margin of 24 thereafter a 2  
longterm growth rate is assumed on revenue and cost into perpetuity the cash flows have been discounted using a pretax discount 
rate of 13 2013 14 
management has considered the following sensitivities 
market growth and wipow – management has considered the impact of a variance in market growth and wipow the value in use 
calculation shows that if the longterm growth rate was reduced to nil the recoverable amount of the us and uk cgus would still be 
greater than their carrying value 
discount rate – management has considered the impact of an increase in the discount rate applied to the calculation the valueinuse 
calculation shows that for the recoverable amount of the cgu to be less than its carrying value the pretax discount rate would have 
to be increased to 23 2013 22 for the us cgu and 35 2013 22 for the uk cgu 
   68 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
68 regus plc annual report and accounts 2014 
12 other intangible assets 
 
brand 
£m 
customer  
lists  
£m 
software  
£m 
total 
£m 
cost   
at 1 january 2013 521 234 260 1015
additions at cost 04 – 152 156
acquisition of subsidiaries – 12 – 12
disposals – – – –
exchange rate movements 09 04 05 18
at 1 january 2014 516 242 407 1165
additions at cost – – 110 110
acquisition of subsidiaries – 03 – 03
transferred to assets held for sale note 17 – – – –
disposals – – – –
exchange rate movements 25 04 05 24
at 31 december 2014 541 249 512 1302
amortisation   
at 1 january 2013 173 206 167 546
charge for the year 21 17 59 97
disposals – – – –
exchange rate movements 04 04 – 08
at 1 january 2014 190 219 226 635
charge for year 20 15 95 130
transferred to assets held for sale note 17 – – – –
disposals – – – –
exchange rate movements 13 02 01 10
at 31 december 2014 223 232 320 775
   
net book value   
at 1 january 2013 348 28 93 469
at 31 december 2013 326 23 181 530
at 31 december 2014 318 17 192 527
included with the brand value is £112m relating to the acquisition of the remaining 58 of the uk business in the year ended  
31 december 2006 the regus brand acquired in this transaction is assumed to have an indefinite useful life due to the fact that the 
value of the brand is intrinsically linked to the continuing operation of the group 
as a result of the regus brand acquired with the uk business having an indefinite useful life no amortisation is charged but the 
carrying value is assessed for impairment on an annual basis the brand was tested at the balance sheet date against the recoverable 
amount of the uk business segment at the same time as the goodwill arising on the acquisition of the uk business see note 11 
the remaining amortisation life for nonindefinite life brands is 10 years 
  
 
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governance financial statements strategic report
13 property plant and equipment  
 
land and 
buildings 
£m 
furniture  
fittings and  
motor vehicles  
£m 
computer 
hardware  
£m 
total 
£m 
cost   
at 1 january 2013 81 9096 545 9722
additions – 2334 155 2489
acquisition of subsidiaries – 341 09 350
disposals – 57 87 144
exchange rate movements – 444 25 469
at 1 january 2014 81 11270 597 11948
additions 20 1884 150 2054
acquisition of subsidiaries 473 107 01 581
transferred to assets held for sale note 17 493 04 – 497
disposals 55 25 04 84
exchange rate movements – 117 14 131
at 31 december 2014 26 13349 758 14133
accumulated depreciation   
at 1 january 2013 06 4934 407 5347
charge for the year 03 795 80 878
disposals – 47 83 130
exchange rate movements – 231 03 234
at 1 january 2014 09 5451 401 5861
charge for the year 07 970 98 1075
transferred to assets held for sale note 17 04 – – 04
disposals 06 14 – 20
exchange rate movements 04 28 09 33
balance at 31 december 2014 02 6435 508 6945
   
net book value   
at 1 january 2013 75 4162 138 4375
at 31 december 2013 72 5819 196 6087
at 31 december 2014 24 6914 250 7188
additions include £nil in respect of assets acquired under finance leases 2013 £nil  
the net book value of furniture fittings and motor vehicles includes amounts held under finance leases as follows 
 
2014  
£m 
2013
£m 
cost 241 201
accumulated depreciation 224 170
net book value 17 31
14 other longterm receivables 
 
2014  
£m 
2013
£m 
deposits held by landlords against rent obligations 429 301
amounts owed by joint ventures 37 31
prepayments and accrued income 27 43
 493 375
15 trade and other receivables  
 
2014  
£m 
2013
£m 
trade receivables 1609 1407
amounts owed by joint ventures 28 29
other receivables 781 431
deposits held by landlords against rent obligations 149 228
prepayments and accrued income 1410 1307
vat recoverable 424 367
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13 property plant and equipment  
 
land and 
buildings 
£m 
furniture  
fittings and  
motor vehicles  
£m 
computer 
hardware  
£m 
total 
£m 
cost   
at 1 january 2013 81 9096 545 9722
additions – 2334 155 2489
acquisition of subsidiaries – 341 09 350
disposals – 57 87 144
exchange rate movements – 444 25 469
at 1 january 2014 81 11270 597 11948
additions 20 1884 150 2054
acquisition of subsidiaries 473 107 01 581
transferred to assets held for sale note 17 493 04 – 497
disposals 55 25 04 84
exchange rate movements – 117 14 131
at 31 december 2014 26 13349 758 14133
accumulated depreciation   
at 1 january 2013 06 4934 407 5347
charge for the year 03 795 80 878
disposals – 47 83 130
exchange rate movements – 231 03 234
at 1 january 2014 09 5451 401 5861
charge for the year 07 970 98 1075
transferred to assets held for sale note 17 04 – – 04
disposals 06 14 – 20
exchange rate movements 04 28 09 33
balance at 31 december 2014 02 6435 508 6945
   
net book value   
at 1 january 2013 75 4162 138 4375
at 31 december 2013 72 5819 196 6087
at 31 december 2014 24 6914 250 7188
additions include £nil in respect of assets acquired under finance leases 2013 £nil  
the net book value of furniture fittings and motor vehicles includes amounts held under finance leases as follows 
 
2014  
£m 
2013
£m 
cost 241 201
accumulated depreciation 224 170
net book value 17 31
14 other longterm receivables 
 
2014  
£m 
2013
£m 
deposits held by landlords against rent obligations 429 301
amounts owed by joint ventures 37 31
prepayments and accrued income 27 43
 493 375
15 trade and other receivables  
 
2014  
£m 
2013
£m 
trade receivables 1609 1407
amounts owed by joint ventures 28 29
other receivables 781 431
deposits held by landlords against rent obligations 149 228
prepayments and accrued income 1410 1307
vat recoverable 424 367
 4401 3769 70 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
70 regus plc annual report and accounts 2014 
16 trade and other payables incl customer deposits 
 
2014  
£m 
2013
£m 
trade payables 619 741
vat payable 466 371
other tax and social security 87 92
customer deposits 2904 2395
deferred partner contributions 352 259
amounts owed to joint ventures 14 07
rent accruals 801 741
other accruals 1166 907
other payables 293 195
total current 6702 5708
 
 
2014  
£m 
2013
£m 
deferred partner contributions 1547 1169
rent accruals 1351 1012
other payables 31 25
total noncurrent 2929 2206
17 assets and liabilities held for sale 
the group has undertaken a project to dispose of the assets and liabilities or specific noncore operations to release the related 
capital originally invested in these operations these assets and liabilities were classified as held for sale their net realisable value  
is estimated to be greater than their book value the sale of these assets and liabilities completed during february 2015 for a 
consideration of approximately £840m and an exceptional profit of approximately £200m after expenses 
the major classes of assets and liabilities classified by the group as held for sale as at 31 december 2014 are as follows 
 
2014 
£m 
assets 
goodwill note 11 103
property plant and equipment note 13 493
trade and other receivables 30
assets held for sale 626
 
liabilities 
trade and other payables 21
liabilities held for sale 21
net assets held for sale 605
there is no cumulative income or expense included in other comprehensive income relating to the net assets held for sale 
18 borrowings 
the group’s total loan and borrowing position at 31 december 2014 and at 31 december 2013 had the following maturity profiles 
bank and other loans 
 
2014  
£m 
2013
£m 
repayments falling due as follows  
amounts falling due after more than one year  
in more than one year but not more than two years 22 16
in more than two years but not more than five years 2071 1390
in more than five years  – –
total noncurrent 2093 1406
total current 14 12
total bank and other loans 2107 1418
  
 
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obligations under finance leases 
the maturity of the group’s finance obligations is as follows 
 
2014  
£m 
2013
£m 
amounts payable  
within one year or on demand – –
in more than one year but not more than two years 01 01
in more than two years but not more than five years – –
 01 01
less finance charges allocated to future periods – –
present value of future minimum lease payments – –
total current – –
total noncurrent 01 01
 01 01
19 provisions 
 2014 2013 
 
onerous
 leases and 
closures 
£m 
other 
£m 
total 
£m 
onerous  
leases and 
closures  
£m 
other  
£m 
total 
£m 
at 1 january 44 13 57 53 08 61
acquired in the period 12 – 12 36 – 36
provided in the period 07 21 28 07 05 12
utilised in the period 05 05 10 08 – 08
provisions released 18 – 18 44 – 44
exchange differences – – – – – –
at 31 december 40 29 69 44 13 57
analysed between   
current 09 17 26 02 06 08
noncurrent 31 12 43 42 07 49
at 31 december 40 29 69 44 13 57
onerous leases and closures 
provisions for onerous leases and closures costs relate to the estimated future costs of centre closures and onerous property leases 
the maximum period over which the provisions are expected to be utilised expires by 31 december 2018 
other  
other provisions include the estimated costs of claims against the group outstanding at the year end of which due to their nature  
the maximum period over which they are expected to be utilised is uncertain 
20 investments in joint ventures  
 
investments in 
joint ventures  
£m 
provision for 
deficit in  
joint ventures  
£m 
total 
£m 
at 1 january 2013 17 12 05
additionsdisposals 04 – 04
dividends paid  08 – 08
share of profit 01 – 01
other 01 – 01
exchange rate movements – – –
at 1 january 2014 13 12 01
additionsdisposals 06 – 06
dividends paid  10 – 10
share of profit 08 – 08
other – 05 05
exchange rate movements 02 – 02
at 31 december 2014 07 07 –
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obligations under finance leases 
the maturity of the group’s finance obligations is as follows 
 
2014  
£m 
2013
£m 
amounts payable  
within one year or on demand – –
in more than one year but not more than two years 01 01
in more than two years but not more than five years – –
 01 01
less finance charges allocated to future periods – –
present value of future minimum lease payments – –
total current – –
total noncurrent 01 01
 01 01
19 provisions 
 2014 2013 
 
onerous
 leases and 
closures 
£m 
other 
£m 
total 
£m 
onerous  
leases and 
closures  
£m 
other  
£m 
total 
£m 
at 1 january 44 13 57 53 08 61
acquired in the period 12 – 12 36 – 36
provided in the period 07 21 28 07 05 12
utilised in the period 05 05 10 08 – 08
provisions released 18 – 18 44 – 44
exchange differences – – – – – –
at 31 december 40 29 69 44 13 57
analysed between   
current 09 17 26 02 06 08
noncurrent 31 12 43 42 07 49
at 31 december 40 29 69 44 13 57
onerous leases and closures 
provisions for onerous leases and closures costs relate to the estimated future costs of centre closures and onerous property leases 
the maximum period over which the provisions are expected to be utilised expires by 31 december 2018 
other  
other provisions include the estimated costs of claims against the group outstanding at the year end of which due to their nature  
the maximum period over which they are expected to be utilised is uncertain 
20 investments in joint ventures  
 
investments in 
joint ventures  
£m 
provision for 
deficit in  
joint ventures  
£m 
total 
£m 
at 1 january 2013 17 12 05
additionsdisposals 04 – 04
dividends paid  08 – 08
share of profit 01 – 01
other 01 – 01
exchange rate movements – – –
at 1 january 2014 13 12 01
additionsdisposals 06 – 06
dividends paid  10 – 10
share of profit 08 – 08
other – 05 05
exchange rate movements 02 – 02
at 31 december 2014 07 07 –
   72 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
72 regus plc annual report and accounts 2014 
20 investments in joint ventures continued 
the results of the joint ventures below are the full results of the joint ventures and do not represent the effective share 
 
2014  
£m 
2013
£m 
income statement  
revenue 268 263
expenses 234 249
profit before tax for the year 34 14
tax charge 06 03
profit after tax for the year 28 11
net assetsliabilities  
fixed assets 65 65
current assets 146 171
current liabilities 159 196
noncurrent liabilities 96 73
net assets 44 33
21 share capital 
ordinary equity share capital 
2014 2013 
 number 
nominal value 
£m number 
nominal value 
£m 
authorised  
ordinary 1p shares at 1 january  31 december 8000000000 800 8000000000  800 
issued and fully paid up  
ordinary 1p shares at 1 january  31 december  950969822 95 950969822  95 
treasury share transactions involving regus plc shares 
as at 31 december 2014 12883455 2013 5257380 shares were held as treasury shares during the year ended 31 december 2014 
regus plc repurchased 9484516 2013 nil of its own shares in the open market and utilised 1858441 2013 3724759 treasury 
shares held by the group to satisfy the exercise of share awards by employees 
the holders of ordinary shares in regus group plc were entitled to receive such dividends as were declared by the company and were 
entitled to one vote per share at meetings of the company treasury shares do not carry such rights until reissued 
22 analysis of financial assets 
 
at 
1 jan 2014 
£m 
cash flow 
£m 
noncash 
changes  
£m 
exchange 
movements  
£m 
at 
31 dec 2014 
£m 
cash and cash equivalents 847 70 – 49 728
gross cash 847 70 – 49 728
debt due within one year 12 02 – – 14
debt due after one year 1406 765 – 78 2093
finance leases due within one year – – – – –
finance leases due after one year 01 – – – 01
 1419 767 – 78 2108
net financial assetsliabilities 572 837 – 29 1380
cash and cash equivalent balances held by the group that are not available for use amounted to £174m at 31 december 2014  
2013 £214m of this balance £135m 2013 £190m is pledged as security against outstanding bank guarantees and a further 
£39m 2013 £24m is pledged against various other commitments of the group  
noncash changes comprise the amortisation of the debt issue costs finance leases and movements in debt maturity 
23 financial instruments and financial risk management 
the objectives policies and strategies applied by the group with respect to financial instruments and the management of capital are 
determined at group level the group’s board maintains responsibility for the risk management strategy of the group and the chief 
financial officer is responsible for policy on a daytoday basis the chief financial officer and group treasurer review the group’s 
risk management strategy and policies on an ongoing basis the board has delegated to the group audit committee the responsibility 
for applying an effective system of internal control and compliance with the group’s risk management policies the audit committee 
is supported by the head of risk management in performing this role 
exposure to credit interest rate and currency risks arise in the normal course of business 
  
 
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governance financial statements strategic report
going concern 
the strategic report on pages 1 to 25 of the annual report and accounts sets out the group’s strategy and the factors that are  
likely to affect the future performance and position of the business the financial review on pages 16 to 19 within the strategic report 
reviews the trading performance financial position and cash flows of the group during the year ended 31 december 2014 the group 
made a significant investment in growth and the group’s net debt position increased by £808m to a net debt position of £1380m as 
at 31 december 2014 the investment in growth is funded by a combination of cash flow generated from the group’s mature business 
centres and debt the group has a £320m revolving credit facility provided by a group of relationship banks with a final maturity in 
2017 as at 31 december 2014 £2566m was available and undrawn 
after making enquiries the directors have a reasonable expectation that the group has adequate resources to continue in  
operational existence for the foreseeable future and accordingly continue to adopt the going concern basis in preparing the  
annual report and accounts 
credit risk 
credit risk could occur where a customer or counterparty defaults under the contractual terms of a financial instrument and arises 
principally in relation to customer contracts and the group’s cash deposits 
a diversified customer base requirement for customer deposits and payments in advance on workstation contracts minimise the 
group’s exposure to customer credit risk no single customer contributes a material percentage of the group’s revenue the group’s 
policy is to provide against trade receivables when specific debts are judged to be irrecoverable or where formal recovery procedures 
have commenced a provision is created where debts are more than three months overdue which reflects the group’s historical 
experience of the likelihood of recoverability of these trade receivables these provisions are reviewed on an ongoing basis to assess 
changes in the likelihood of recoverability 
the maximum exposure to credit risk for trade receivables at the reporting date analysed by geographic region is summarised below 
 
2014  
£m 
2013
£m 
americas 280 267
emea 579 495
asia pacific 287 233
uk 463 412
 1609 1407
all of the group’s trade receivables relate to customers purchasing workplace solutions and associated services and no individual 
customer has a material balance owing as a trade receivable  
the ageing of trade receivables at 31 december was 
 
gross 
2014 
£m 
provision  
2014  
£m 
gross  
2013  
£m 
provision 
2013 
£m 
not overdue 1253 – 1039 –
past due 0 – 30 days 251 – 253 –
past due 31 – 60 days 75 – 74 –
more than 60 days 113 83 111 70
 1692 83 1477 70
at the year end 31 december 2014 the group maintained a provision of £83m against potential bad debts 2013 £70m arising  
from trade receivables the group had provided £45m 2013 £11m in the year and utilised £25m 2013 £05m customer deposits 
of £2904m 2013 £2395m are held by the group mitigating the risk of default 
the group believes no provision is generally required for trade receivables that are not overdue as the group collects the majority  
of its revenue in advance of the provision of office services and requires deposits from its customers  
cash investments and derivative financial instruments are only transacted with counterparties of sound credit ratings and 
management does not expect any of these counterparties to fail to meet their obligations  
liquidity risk 
the group manages liquidity risk by closely monitoring the global cash position the available and undrawn credit facilities and 
forecast capital expenditure and expects to have sufficient liquidity to meet its financial obligations as they fall due the group has 
free cash and liquid investments excluding blocked cash of £552m 2013 £633m in addition to cash and liquid investments the 
group had £2566m available and undrawn under its committed borrowings the directors consider the group has adequate liquidity 
to meet daytoday requirements 
in may 2014 the group issued debt securities for a total amount of eur 2100m £1636m using the german “schuldschein” 
framework for debt issuance these securities consisted of eur 1650m of three year notes and eur 450m of five year notes  
and were sold to a number of banks and institutional investors 
the group maintains a £320m revolving credit facility with a final maturity date in september 2017 as at 31 december £2566m  
was available and undrawn under this facility 
    wwwreguscom 73
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going concern 
the strategic report on pages 1 to 25 of the annual report and accounts sets out the group’s strategy and the factors that are  
likely to affect the future performance and position of the business the financial review on pages 16 to 19 within the strategic report 
reviews the trading performance financial position and cash flows of the group during the year ended 31 december 2014 the group 
made a significant investment in growth and the group’s net debt position increased by £808m to a net debt position of £1380m as 
at 31 december 2014 the investment in growth is funded by a combination of cash flow generated from the group’s mature business 
centres and debt the group has a £320m revolving credit facility provided by a group of relationship banks with a final maturity in 
2017 as at 31 december 2014 £2566m was available and undrawn 
after making enquiries the directors have a reasonable expectation that the group has adequate resources to continue in  
operational existence for the foreseeable future and accordingly continue to adopt the going concern basis in preparing the  
annual report and accounts 
credit risk 
credit risk could occur where a customer or counterparty defaults under the contractual terms of a financial instrument and arises 
principally in relation to customer contracts and the group’s cash deposits 
a diversified customer base requirement for customer deposits and payments in advance on workstation contracts minimise the 
group’s exposure to customer credit risk no single customer contributes a material percentage of the group’s revenue the group’s 
policy is to provide against trade receivables when specific debts are judged to be irrecoverable or where formal recovery procedures 
have commenced a provision is created where debts are more than three months overdue which reflects the group’s historical 
experience of the likelihood of recoverability of these trade receivables these provisions are reviewed on an ongoing basis to assess 
changes in the likelihood of recoverability 
the maximum exposure to credit risk for trade receivables at the reporting date analysed by geographic region is summarised below 
 
2014  
£m 
2013
£m 
americas 280 267
emea 579 495
asia pacific 287 233
uk 463 412
 1609 1407
all of the group’s trade receivables relate to customers purchasing workplace solutions and associated services and no individual 
customer has a material balance owing as a trade receivable  
the ageing of trade receivables at 31 december was 
 
gross 
2014 
£m 
provision  
2014  
£m 
gross  
2013  
£m 
provision 
2013 
£m 
not overdue 1253 – 1039 –
past due 0 – 30 days 251 – 253 –
past due 31 – 60 days 75 – 74 –
more than 60 days 113 83 111 70
 1692 83 1477 70
at the year end 31 december 2014 the group maintained a provision of £83m against potential bad debts 2013 £70m arising  
from trade receivables the group had provided £45m 2013 £11m in the year and utilised £25m 2013 £05m customer deposits 
of £2904m 2013 £2395m are held by the group mitigating the risk of default 
the group believes no provision is generally required for trade receivables that are not overdue as the group collects the majority  
of its revenue in advance of the provision of office services and requires deposits from its customers  
cash investments and derivative financial instruments are only transacted with counterparties of sound credit ratings and 
management does not expect any of these counterparties to fail to meet their obligations  
liquidity risk 
the group manages liquidity risk by closely monitoring the global cash position the available and undrawn credit facilities and 
forecast capital expenditure and expects to have sufficient liquidity to meet its financial obligations as they fall due the group has 
free cash and liquid investments excluding blocked cash of £552m 2013 £633m in addition to cash and liquid investments the 
group had £2566m available and undrawn under its committed borrowings the directors consider the group has adequate liquidity 
to meet daytoday requirements 
in may 2014 the group issued debt securities for a total amount of eur 2100m £1636m using the german “schuldschein” 
framework for debt issuance these securities consisted of eur 1650m of three year notes and eur 450m of five year notes  
and were sold to a number of banks and institutional investors 
the group maintains a £320m revolving credit facility with a final maturity date in september 2017 as at 31 december £2566m  
was available and undrawn under this facility 
   74 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
74 regus plc annual report and accounts 2014 
23 financial instruments and financial risk management continued 
although the group has net current liabilities of £3039m 2013 £2891m the group does not consider that this gives rise to a 
liquidity risk a large proportion of the net current liabilities comprise noncash liabilities such as deferred income which will be 
recognised in future periods through the income statement although the group holds customer deposits of £2904m 2013 £2395m 
these are spread across a large number of customers and no deposit held for an individual customer is material therefore the group 
does not believe the balance represents a liquidity risk the net current liabilities excluding deferred income were £986m at 31 
december 2014 2013 £1093m  
market risk 
the group is exposed to market risk primarily related to foreign currency exchange rates interest rates and the market value of  
our investments in financial assets these exposures are actively managed by the group treasury department in accordance with  
a written policy approved by the board of directors the group does not use financial derivatives for trading or speculative reasons 
interest rate risk 
the group manages its exposure to interest rate risk through the relative proportions of fixed rate debt and floating rate debt the 
surplus cash balances are invested short term and at the end of 2014 no cash was invested for a period exceeding three months  
foreign currency risk 
the group is exposed to foreign currency exchange rate movements the majority of daytoday transactions of overseas subsidiaries 
are carried out in local currency and the underlying foreign exchange exposure is small transactional exposures do arise in some 
countries where it is local market practice for a proportion of the payables or receivables to be in other than the functional currency  
of the affiliate intercompany charging funding and cash management activity may also lead to foreign exchange exposures  
it is the policy of the group to seek to minimise such transactional exposures through careful management of nonlocal currency  
assets and liabilities thereby minimising the potential volatility in the income statement net investments in regus affiliates with a 
functional currency other than pound sterling are of a longterm nature and the group does not normally hedge such foreign currency 
translation exposures 
from time to time the group uses shortterm derivative financial instruments to manage its transactional foreign exchange  
exposures where these exposures cannot be eliminated through balancing the underlying risks no transactions of a speculative 
nature are undertaken 
the foreign currency exposure arising from open third party transactions held in a currency other than the functional currency of the 
related entity is summarised as follows 
2014 
£m gbp jpy eur usd
trade and other receivables 01 – 57 114
loans – – 70 –
trade and other payables 09 22 269 129
net statement of financial position exposure 08 22 282 15
 
2013 
£m gbp jpy eur usd
trade and other receivables – – 49 130
loans – – – –
trade and other payables 03 35 67 120
net statement of financial position exposure 03 35 18 10
other market risks 
the group does not hold any availableforsale equity securities and is therefore not subject to risks of changes in equity prices  
in the income statement 
sensitivity analysis 
for the year ending 31 december 2014 it is estimated that a general increase of one percentage point in interest rates would have 
theoretically decreased the group’s profit before tax by approximately £09m 2013 decrease of £02m with a corresponding 
increase in total equity 
it is estimated that a five percentage point weakening in the value of the us dollar against pound sterling would have theoretically 
decreased the group’s profit before tax by approximately £31m for the year ended 31 december 2014 2013 £33m it is estimated 
that a five percentage point weakening in the value of the euro against pound sterling would have decreased the group’s profit before 
tax by approximately £01m for the year ended 31 december 2014 2013 decrease of £01m 
it is estimated that a five percentage point weakening in the value of the us dollar against pound sterling would have theoretically 
decreased the group’s total equity by approximately £117m for the year ended 31 december 2014 2013 £126m it is estimated that 
a five percentage point weakening in the value of the euro against pound sterling would have decreased the group’s total equity by 
approximately £64m for the year ended 31 december 2014 2013 £04m 
  
 
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governance financial statements strategic report
capital management 
the group’s parent company is listed on the uk stock exchange and the board’s policy is to maintain a strong capital base the chief 
financial officer monitors the diversity of the group’s major shareholders and further details of the group’s communication with key 
investors can be found in the corporate governance report on pages 29 to 33 in 2006 the board approved the commencement of a 
progressive dividend policy to enhance the total return to shareholders 
the group’s chief executive officer mark dixon is the major shareholder of the company and all executive members of the board  
hold shares in the company details of the directors’ shareholdings can be found in the report of the remuneration committee on 
pages 38 to 45 in addition the group operates various share option plans for key management and other senior employees 
in the year ended 31 december 2014 regus plc purchased nil 2013 1464685 of its own shares in the open market to satisfy 
employee share awards regus plc also purchased 9484516 2013 nil of its own shares in the open market to hold as treasury 
shares 1858441 2013 3724759 treasury shares held by the group were utilised to satisfy the exercise of share awards by 
employees as at 3 march 2015 12883455 shares were held as treasury shares 
the company declared an interim dividend of 125p per share 2013 11p during the year ended 31 december 2014 and proposed  
a final dividend of 275p per share 2013 25p per share a 10 increase on the 2013 dividend  
the group’s objective when managing capital equity and borrowings is to safeguard the group’s ability to continue as a going 
concern and to maintain an optimal capital structure to reduce the cost of capital the group has a net debt position of £1380m 
2013 £572m at the end of 2014 and £2566m 2013 £1679m of committed undrawn borrowings  
effective interest rates  
in respect of financial assets and financial liabilities the following table indicates their effective interest rates at the balance sheet 
date and the periods in which they mature interest payments are excluded from the table 
the undiscounted cash flow of these instruments is not materially different from the carrying value 
as at 31 december 2014 
 
effective
interest 
rate 

a
 
carrying 
value 
£m 
contractual 
cash flow 
£m 
less than 
1 year 
£m 
12 years  
£m 
25 years 
£m 
more than 
5 years 
£m 
cash and cash equivalents 03 728 728 728 – – –
trade and other receivables – 3459 3541 3073 215 253 –
financial assets
b
 4187 4269 3801 215 253 –
  
nonderivative financial liabilities
a
  
finance lease liabilities 07 01 01 01 – – –
bank loans  corporate borrowings 37 2093 2093 – 22 2071 –
other loans  146 14 14 14 – 
customer deposits – 2904 2904 2904 – – –
trade and other payables  – 2715 2715 2688 27 – –
  
derivative financial liabilities  
cross currency interest rate swaps 
– outflow – 70 – – – – –
– inflow – – – – – – –
interest rate swaps  
– outflow – 07 – – – – –
– inflow – – – – – – –
financial liabilities 7804 7727 5607 49 2071 –
a all financial instruments are classified as variable rate instruments 
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governance financial statements strategic report
capital management 
the group’s parent company is listed on the uk stock exchange and the board’s policy is to maintain a strong capital base the chief 
financial officer monitors the diversity of the group’s major shareholders and further details of the group’s communication with key 
investors can be found in the corporate governance report on pages 29 to 33 in 2006 the board approved the commencement of a 
progressive dividend policy to enhance the total return to shareholders 
the group’s chief executive officer mark dixon is the major shareholder of the company and all executive members of the board  
hold shares in the company details of the directors’ shareholdings can be found in the report of the remuneration committee on 
pages 38 to 45 in addition the group operates various share option plans for key management and other senior employees 
in the year ended 31 december 2014 regus plc purchased nil 2013 1464685 of its own shares in the open market to satisfy 
employee share awards regus plc also purchased 9484516 2013 nil of its own shares in the open market to hold as treasury 
shares 1858441 2013 3724759 treasury shares held by the group were utilised to satisfy the exercise of share awards by 
employees as at 3 march 2015 12883455 shares were held as treasury shares 
the company declared an interim dividend of 125p per share 2013 11p during the year ended 31 december 2014 and proposed  
a final dividend of 275p per share 2013 25p per share a 10 increase on the 2013 dividend  
the group’s objective when managing capital equity and borrowings is to safeguard the group’s ability to continue as a going 
concern and to maintain an optimal capital structure to reduce the cost of capital the group has a net debt position of £1380m 
2013 £572m at the end of 2014 and £2566m 2013 £1679m of committed undrawn borrowings  
effective interest rates  
in respect of financial assets and financial liabilities the following table indicates their effective interest rates at the balance sheet 
date and the periods in which they mature interest payments are excluded from the table 
the undiscounted cash flow of these instruments is not materially different from the carrying value 
as at 31 december 2014 
 
effective
interest 
rate 

a
 
carrying 
value 
£m 
contractual 
cash flow 
£m 
less than 
1 year 
£m 
12 years  
£m 
25 years 
£m 
more than 
5 years 
£m 
cash and cash equivalents 03 728 728 728 – – –
trade and other receivables – 3459 3541 3073 215 253 –
financial assets
b
 4187 4269 3801 215 253 –
  
nonderivative financial liabilities
a
  
finance lease liabilities 07 01 01 01 – – –
bank loans  corporate borrowings 37 2093 2093 – 22 2071 –
other loans  146 14 14 14 – 
customer deposits – 2904 2904 2904 – – –
trade and other payables  – 2715 2715 2688 27 – –
  
derivative financial liabilities  
cross currency interest rate swaps 
– outflow – 70 – – – – –
– inflow – – – – – – –
interest rate swaps  
– outflow – 07 – – – – –
– inflow – – – – – – –
financial liabilities 7804 7727 5607 49 2071 –
a all financial instruments are classified as variable rate instruments 
b financial assets are all held at amortised cost    76 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
76 regus plc annual report and accounts 2014 
23 financial instruments and financial risk management continued 
as at 31 december 2013 
 
effective 
interest rate  

a
 
carrying 
value 
£m 
contractual 
cash flow 
£m 
less than 
1 year 
£m 
12 years  
£m 
25 years  
£m 
more than 
5 years 
£m 
cash and cash equivalents 11 847 847 847 – – –
trade and other receivables – 2790 2860 2527 151 182 –
financial assets
b
  3637 3707 3374 151 182 –
    
nonderivative financial liabilities
a
   
finance lease liabilities 39 01 01 01 – – –
bank loans  corporate borrowings 26 1406 1409 04 14 1391 –
other loans  99 12 12 10 02 – –
customer deposits – 2395 2395 2395 – – –
trade and other payables  – 2371 2371 2345 26 – –
    
derivative financial liabilities    
cross currency interest rate swaps    
– outflow – – – – – – –
– inflow – – – – – – –
interest rate swaps    
– outflow – 01 – – – – –
– inflow – – – – – – –
financial liabilities  6186 6188 4755 42 1391 –
a all financial instruments are classified as variable rate instruments 
b financial assets are all held at amortised cost 
fair value disclosures 
the fair values together with the carrying amounts shown in the balance sheet are as follows 
31 december 2014 carrying amount fair value  
£m 
loans and 
receivables 
other 
financial 
liabilities 
fair value –
hedging 
instruments total level 1 level 2 level 3 total 
cash and cash equivalents 728 – – 728 – – – –
trade and other receivables 3459 – – 3459 – – – –
finance lease liabilities – 01 – 01 – – – –
bank loans  corporate 
borrowings – 2093 – 2093 – – – –
other loans  – 14 – 14 – – – –
customer deposits – 2904 – 2904 – – – –
trade and other payables – 2715 – 2715 – – – –
derivative financial liabilities – – 77 77 – 77 – 77
 4187 7727 77 3617 – 77 – 77
unrecognised gain    –
 
31 december 2013 carrying amount fair value 
£m 
loans and 
receivables 
other 
financial 
liabilities 
fair value –
hedging 
instruments total level 1 level 2 level 3 total 
cash and cash equivalents 847 – – 847 – – – –
trade and other receivables 2790 – – 2790 – – – –
finance lease liabilities – 01 – 01 – – – –
bank loans  corporate 
borrowings – 1406 – 1406 – – – –
other loans  – 12 – 12 – – – –
customer deposits – 2395 – 2395 – – – –
trade and other payables – 2371 – 2371 – – – –
derivative financial liabilities – – 01 01 – 01 – 01
 3637 6185 01 2549 – 01 – 01
unrecognised gain    –
  
 
  wwwreguscouk 77 
governance financial statements strategic report
during the years ended 31 december 2014 and 31 december 2013 there were no transfers between levels for fair value measured 
instruments and no financial instruments requiring level 3 fair value measurements were held 
valuation techniques 
when measuring the fair value of an asset or a liability the group uses market observable data as far as possible fair values are 
categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows 
• level 1 quoted prices in active markets for identical assets or liabilities 
• level 2 inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly 
and 
• level 3 inputs for the asset or liability that are not based on observable market data 
the following tables show the valuation techniques used in measuring level 2 and level 3 fair values as well as the significant 
unobservable inputs used 
type valuation technique
cash and cash equivalents trade and other 
receivablespayables and customer deposits 
for cash and cash equivalents receivablespayables with a remaining life of 
less than one year and customer deposits the book value approximates the 
fair value because of their shortterm nature 
finance lease liabilities the fair value of finance leases has been calculated by discounting future 
cash flows at an appropriate discount rate which reflects current market 
assessments and the risks specific to such liabilities 
loans and overdrafts the fair value of bank loans overdrafts and other loans approximates the 
carrying value because interest rates are at floating rates where payments  
are reset to market rates at intervals of less than one year 
foreign exchange contracts and interest rate swaps the fair values are based on a combination of broker quotes forward pricing 
and swap models 
there was no significant unobservable input used in our valuation techniques 
derivative financial instruments 
the following table summarises the notional amount of the open contracts as at 31 december 2014 
 
2014  
eur m 
2013
eur m 
derivatives used for cash flow hedging 2100 –
committed borrowings 
 
2014
facility 
£m 
2014 
available  
£m 
2013 
facility  
£m  
2013
available 
£m 
“schuldschein” loan note 1636 – – –
revolving credit facility 3200 2566 320 1679
guarantee and letter of credit facility 950 155 950 175
total 5786 2721 4150 1854
in may 2014 the group issued debt securities for a total amount of eur 2100m £1636m using the german “schuldschein” 
framework for debt issuance these securities consisted of eur 1650m of three year notes and eur 450m of five year notes and  
were sold to a number of banks and institutional investors these securities are subject to covenants which are similar to our banking 
facilities the group is in compliance with these covenant requirements 
the underlying interest obligation on these debt securities is floating rate and in euro however as part of the group’s balance sheet 
management and to protect against a future increase in interest rates eur 1650 million was swapped into a fixed rate gbp liability 
and eur 450 million was swapped into a fixed rate euro liability while providing the group with protection against higher interest 
rates given the current positive yield curve the immediate impact of this hedging is a modest increase in financing expense   
the group maintains a £320m revolving credit facility and a £95m bank guarantee and letter of credit facility both with a final  
maturity in september 2017 both facilities are subject to financial covenants relating to operating cash flow net debt to ebitda  
and ebitda plus rent to interest plus rent the group is in compliance with all covenant requirements 
24 sharebased payment 
there are two sharebased payment plans details of which are outlined below 
plan 1 regus group share option plan 
during 2004 the group established the regus group share option plan that entitles executive directors and certain employees to 
purchase shares in regus plc previously regus group plc in accordance with this programme holders of vested options are entitled 
to purchase shares at the market price of the shares at the day before the date of grant 
the regus group also operates the regus group share option plan france which is included within the numbers for the regus share 
option plan disclosed above the terms of the regus share option plan france are materially the same as the regus group share 
option plan with the exception that they are only exercisable from the fourth anniversary of the date of grant assuming the 
performance conditions have been met 
    wwwreguscom 77
governance strategic report financial statements
 
  wwwreguscouk 77 
governance financial statements strategic report
during the years ended 31 december 2014 and 31 december 2013 there were no transfers between levels for fair value measured 
instruments and no financial instruments requiring level 3 fair value measurements were held 
valuation techniques 
when measuring the fair value of an asset or a liability the group uses market observable data as far as possible fair values are 
categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows 
• level 1 quoted prices in active markets for identical assets or liabilities 
• level 2 inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly 
and 
• level 3 inputs for the asset or liability that are not based on observable market data 
the following tables show the valuation techniques used in measuring level 2 and level 3 fair values as well as the significant 
unobservable inputs used 
type valuation technique
cash and cash equivalents trade and other 
receivablespayables and customer deposits 
for cash and cash equivalents receivablespayables with a remaining life of 
less than one year and customer deposits the book value approximates the 
fair value because of their shortterm nature 
finance lease liabilities the fair value of finance leases has been calculated by discounting future 
cash flows at an appropriate discount rate which reflects current market 
assessments and the risks specific to such liabilities 
loans and overdrafts the fair value of bank loans overdrafts and other loans approximates the 
carrying value because interest rates are at floating rates where payments  
are reset to market rates at intervals of less than one year 
foreign exchange contracts and interest rate swaps the fair values are based on a combination of broker quotes forward pricing 
and swap models 
there was no significant unobservable input used in our valuation techniques 
derivative financial instruments 
the following table summarises the notional amount of the open contracts as at 31 december 2014 
 
2014  
eur m 
2013
eur m 
derivatives used for cash flow hedging 2100 –
committed borrowings 
 
2014
facility 
£m 
2014 
available  
£m 
2013 
facility  
£m  
2013
available 
£m 
“schuldschein” loan note 1636 – – –
revolving credit facility 3200 2566 320 1679
guarantee and letter of credit facility 950 155 950 175
total 5786 2721 4150 1854
in may 2014 the group issued debt securities for a total amount of eur 2100m £1636m using the german “schuldschein” 
framework for debt issuance these securities consisted of eur 1650m of three year notes and eur 450m of five year notes and  
were sold to a number of banks and institutional investors these securities are subject to covenants which are similar to our banking 
facilities the group is in compliance with these covenant requirements 
the underlying interest obligation on these debt securities is floating rate and in euro however as part of the group’s balance sheet 
management and to protect against a future increase in interest rates eur 1650 million was swapped into a fixed rate gbp liability 
and eur 450 million was swapped into a fixed rate euro liability while providing the group with protection against higher interest 
rates given the current positive yield curve the immediate impact of this hedging is a modest increase in financing expense   
the group maintains a £320m revolving credit facility and a £95m bank guarantee and letter of credit facility both with a final  
maturity in september 2017 both facilities are subject to financial covenants relating to operating cash flow net debt to ebitda  
and ebitda plus rent to interest plus rent the group is in compliance with all covenant requirements 
24 sharebased payment 
there are two sharebased payment plans details of which are outlined below 
plan 1 regus group share option plan 
during 2004 the group established the regus group share option plan that entitles executive directors and certain employees to 
purchase shares in regus plc previously regus group plc in accordance with this programme holders of vested options are entitled 
to purchase shares at the market price of the shares at the day before the date of grant 
the regus group also operates the regus group share option plan france which is included within the numbers for the regus share 
option plan disclosed above the terms of the regus share option plan france are materially the same as the regus group share 
option plan with the exception that they are only exercisable from the fourth anniversary of the date of grant assuming the 
performance conditions have been met 
   78 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
78 regus plc annual report and accounts 2014 
24 sharebased payment continued 
reconciliation of outstanding share options 
2014 2013 
 
number of 
share options 
weighted 
average  
exercise price 
per share 
number of  
share options 
weighted 
average 
exercise price 
per share 
at 1 january 26841120 12520 27211499 8953
granted during the year 1845500 18720 10514000 17694
lapsed during the year 4407566 15591 7856529 9686
exercised during the year 1058359 9881 3027850 5781
outstanding at 31 december 23220695 12105 26841120 12520
exercisable at 31 december 2118056 10362 775333  8629 
 
date of grant 
numbers  
granted 
weighted 
average 
exercise price 
per share lapsed exercised at 31 dec 2014 exercisable from expiry date 
23072004 4106981  5700 – 4106981 – 23072007 23072014
23032010 3986000 10050 3476001 154866 355133 23032013 23032020
28062010 617961 7500 546198 15340 56423 28062013 28062020
01092010 160646 6910 146728 8126 5792 01092013 01092020
01042011 2400000 11490 954402 160622 1284976 01042014 01042021
30062011 9867539 10950 4874777 577116 4415646 30062014 30062021
31082011 300000 6700 – – 300000 31082014 31082021
02092011 1000000 7435 92667 – 907333 01092014 02092021
13062012 11189000 8495 3508058 – 7680942 13062015 13062022
12062013 7741000 15560 2866750 – 4874250 12062016 12062023
18112013 grant 1 1053000 19190 338000 – 715000 18112016 17112023
18112013 grant 2 600000 19190 – – 600000 18112016 17112023
18122013 grant 1 200000 19500 – – 200000 18122016 17122023
18122013 grant 2 1000000 19500 – – 1000000 18122016 17122023
20052014 1845500 18720 1020300 – 825200 20052017 19052024
total 46067627 11276 17823881 5023051 23220695  
311828 options awarded during the year under the regus share option plan france are included in the above table 2013 280000 162250 lapsed during the 
year 2013 479620 and 5044 were exercised during the year 2013 3325 
performance conditions for share options 
july 2004 share option plan 
the options awarded in 2004 included certain performance criteria that needed to be met in order for the share options to vest  
the share options vested based on the basic earnings per share adjusted for nonrecurring items and goodwill and intangible 
amortisation that exceeded the targets linked to the retail price index the basic earnings per share for performance purposes  
was 1p 100 of the options awarded in july 2004 vested during 2007 
march june and september 2010 share option plan 
the group and regional performance targets for the options awarded in march june and september 2011 based on a combination  
of eps and the regus total shareholder return ‘tsr’  achieved relative to the ftse all share total return index is at least at the 
median over the performance period for the year ending 2010 were partially met those options that are eligible to vest will vest  
as follows 
 
proportion 
to vest 
2013 13
2014 13
2015 13
april 2011 share option plan 
the performance targets for the options awarded in april 2011 based on pregrowth profit for the year ending 31 december 2011  
were partially met those options that are eligible to vest will vest as follows 
 
proportion 
to vest 
april 2014 13
april 2015 13
april 2016 13
  
 
  wwwreguscouk 79 
governance financial statements strategic report
june 2011 share option plan 
the group and regional performance targets for the options awarded in june 2011 based on pregrowth profit for the year ending  
31 december 2011 were partially met those options that are eligible to vest will vest as follows 
 
proportion 
to vest 
june 2014 13
june 2015 13
june 2016 13
august 2011 share option plan 
the options awarded in august 2011 are conditional on the ongoing employment of the related employee for a specified period of 
time once this condition is satisfied those options that are eligible to vest will vest as follows 
 
proportion 
to vest 
august 2014 13
august 2015 13
august 2016 13
september 2011 share option plan 
the performance targets based on the consensus operating profit for the options awarded in september 2011 were partially met  
those options that are eligible to vest will vest as follows 
 
proportion 
to vest 
september 2014 13
september 2015 13
september 2016 13
june 2012 share option plan 
the group performance targets based on pregrowth profit for the options awarded in june 2012 were partially met 
once performance conditions are satisfied those options that are eligible to vest will vest as follows 
 
proportion 
to vest 
june 2015 13
june 2016 13
june 2017 13
 
june 2013 share option plan 
the group performance targets based on group operating profit for the options awarded in june 2013 were partially met those 
options that are eligible to vest will vest as follows 
 
proportion 
to vest 
june 2016 13
june 2017 13
june 2018 13
november 2013 grant 1 share option plan 
the options awarded in november 2013 grant 1 are conditional on the ongoing employment of the related employees for a specified 
period of time once this condition is satisfied those options that are eligible to vest will vest as follows 
 
proportion 
to vest 
november 2016 13
november 2017 13
november 2018 13
november 2013 grant 2 share option plan 
the options awarded in november 2013 grant 2 are partly subject to a performance target based on the earnings before tax for the 
years ending 31 december 2016 and 31 december 2017 such that the number of shares vesting will be subject to the satisfaction of  
a predetermined earnings before tax target in 2016 and 2017 
once performance conditions are satisfied those options that are eligible to vest will vest on the anniversary of the grant date in the 
year following achievement of one or more of the target thresholds those options not subject to the performance targets are eligible 
to be exercised in three equal tranches from the third anniversary of the grant date 
    wwwreguscom 79
governance strategic report financial statements
 
  wwwreguscouk 79 
governance financial statements strategic report
june 2011 share option plan 
the group and regional performance targets for the options awarded in june 2011 based on pregrowth profit for the year ending  
31 december 2011 were partially met those options that are eligible to vest will vest as follows 
 
proportion 
to vest 
june 2014 13
june 2015 13
june 2016 13
august 2011 share option plan 
the options awarded in august 2011 are conditional on the ongoing employment of the related employee for a specified period of 
time once this condition is satisfied those options that are eligible to vest will vest as follows 
 
proportion 
to vest 
august 2014 13
august 2015 13
august 2016 13
september 2011 share option plan 
the performance targets based on the consensus operating profit for the options awarded in september 2011 were partially met  
those options that are eligible to vest will vest as follows 
 
proportion 
to vest 
september 2014 13
september 2015 13
september 2016 13
june 2012 share option plan 
the group performance targets based on pregrowth profit for the options awarded in june 2012 were partially met 
once performance conditions are satisfied those options that are eligible to vest will vest as follows 
 
proportion 
to vest 
june 2015 13
june 2016 13
june 2017 13
 
june 2013 share option plan 
the group performance targets based on group operating profit for the options awarded in june 2013 were partially met those 
options that are eligible to vest will vest as follows 
 
proportion 
to vest 
june 2016 13
june 2017 13
june 2018 13
november 2013 grant 1 share option plan 
the options awarded in november 2013 grant 1 are conditional on the ongoing employment of the related employees for a specified 
period of time once this condition is satisfied those options that are eligible to vest will vest as follows 
 
proportion 
to vest 
november 2016 13
november 2017 13
november 2018 13
november 2013 grant 2 share option plan 
the options awarded in november 2013 grant 2 are partly subject to a performance target based on the earnings before tax for the 
years ending 31 december 2016 and 31 december 2017 such that the number of shares vesting will be subject to the satisfaction of  
a predetermined earnings before tax target in 2016 and 2017 
once performance conditions are satisfied those options that are eligible to vest will vest on the anniversary of the grant date in the 
year following achievement of one or more of the target thresholds those options not subject to the performance targets are eligible 
to be exercised in three equal tranches from the third anniversary of the grant date 
   80 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
80 regus plc annual report and accounts 2014 
24 sharebased payment continued 
december 2013 grant 1 share option plan 
the options awarded in december 2013 grant 1 are conditional on the ongoing employment of the related employee for a specified 
period of time once this condition is satisfied those options that are eligible to vest will vest as follows 
 
proportion 
to vest 
december 2016 13
december 2017 13
december 2018 13
december 2013 grant 2 share option plan 
the options awarded in december 2013 grant 2 are subject to a performance target based on the earnings before tax for the years 
ending 31 december 2018 and 31 december 2021 such that the number of shares vesting will be subject to the satisfaction of a pre
determined earnings before tax target in 2018 and 2021 
once performance conditions are satisfied those options that are eligible to vest will vest on the anniversary of the grant date in the 
year following attainment of one or more of the target thresholds 
may 2014 share option plan 
the options awarded in may 2014 are conditional on the ongoing employment of the related employees for a specified period of time 
once this condition is satisfied those options that are eligible to vest will vest as follows 
 
proportion 
to vest 
may 2017 13
may 2018 13
may 2019 13
measurement of fair values 
the fair value of the rights granted through the employee share purchase plan was measured based on the monte carlo simulation or 
the blackscholes formula the expected volatility is based on the historic volatility adjusted for any abnormal movement in share 
prices 
the inputs to the model are as follows 
 
may 
2014 
december 
2013
grant 2 
december
2013
grant 1 
november 
2013 
grant 2 
november 
2013
grant 1 
june  
2013 
june  
2012 
september 
2011 
share price on grant date 19100p 19500p 19500p 19190p 19190p 15800p 8855p 7250p
exercise price 18720p 19500p 19500p 19190p 19190p 15560p 8495p 7435p
expected volatility 2730– 
4191 
3291 3291 3269 3269 4031–
4898 
4787–
5274 
5259–
4608
number of simulations – – – – – 30000 30000 30000
number of companies – – – – – – – –
option life 3–5 years 5–8 years 3–5 years 3–5 years 3–5 years 3–5 years 3–5 years 3–5 years
expected dividend 200 146 146 146 146 203 327 366
fair value of option at time  
of grant 
3080p– 
5963p 
5241p –
6595p
4056p–
5241p 4573p
3963p–
5124p
3921p– 
5839p 
2988p– 
3112p 
2289p–
2271p
risk free  
interest rate 
099–
147 
157–
230p
085–
157
122 085–
157
067– 
120 
065– 
111 
116–
175
 
 august 2011 june 2011 april 2011 september 2010 june 2010
  eps tsr eps tsr eps tsr
share price on grant date 7590p 11070p 7060p 7060p 7320p 7320p 9400p 9400p
exercise price 6700p 10950p 6910p 6910p 7500p 7500p 10050p 10050p
expected volatility 5261–
4613 
5155–
4499
5028–
4561
5028–
4561
4618–
5432
4699–
5636 
4702– 
6482 
4674–
5598
number of simulations 30000 30000 30000 30000 30000 30000 30000 30000
number of companies 
– 
ftse all 
share 
index
ftse all 
share 
index
ftse all 
share 
index
ftse all 
share 
index
ftse all 
share 
index 
ftse all 
share 
index 
ftse all 
share 
index
option life 3–5 years 3–5 years 3–5 years 3–5 years 3–5 years 3–5 years 3–5 years 3–5 years
expected dividend 349 235 340 340 328 328 255 255
fair value of option at time  
of grant 
2732p–
2701p 
3941p–
4096p
2280p–
2360p
2151p–
2151p
3520p–
4270p
1240p– 
1740p 
4549p– 
6177p 
1950p–
2630p
risk free interest rate 129–
191 
181–
257
151–
217
151–
217
276–
305
276– 
305 
307– 
338 
307–
338
 
  
 
  wwwreguscouk 81 
governance financial statements strategic report
plan 2 regus plc coinvestment plan cip and long term incentive plan ltip 
the cip operates in conjunction with the annual bonus whereby a gross bonus of up to 50 of basic annual salary will be taken as a 
deferred amount of shares “investment shares” to be released at the end of a defined period of not less than three years with the 
balance paid in cash awards of matching shares are linked to the number of investment shares awarded and will vest depending on 
the company’s future performance the maximum number of matching shares which can be awarded to a participant in any calendar 
year under the cip is 200 of salary as such the maximum number of matching shares which can be awarded based on investment 
shares awarded is in the ratio of 41 
the ltip provides for the remuneration committee to make standalone longterm incentive awards without reference to the annual 
bonus up to a maximum of 100 of salary per calendar year 
reconciliation of outstanding share options 
 2014 2013
 
number of 
awards 
number of 
awards 
at 1 january 9377249 14742932
cip awards granted during the year 809610 1521470
ltip awards granted during the year – –
lapsed during the year 3056082 4725549
exercised during the year 1370488 2161604
outstanding at 31 december 5760289 9377249
exercisable at 31 december 24424 –
the weighted average share price at the date of exercise for share awards and options exercised during the year ended 31 december 
2014 was 22164p 2013 17022p 
plan date of grant 
numbers 
granted lapsed exercised 
at 31 dec  
2014 release date 
ltip 03112005 3723235 1092818 2605993 24424 03112008
ltip 23032010 2900472 2304207 596265 – 23032013
 6623707 3397025 3202258 24424 
 
plan date of grant 
numbers 
granted lapsed exercised 
at 31 dec  
2014 release date 
cip investment shares 18032008 1557391 86956 1470435 – 18032011
cip matching shares 18032008 5922916 3735446 948026 1239444 see below
1
cip investment shares 23032009 2212734 172835 2039899 – 23032012
cip matching shares 23032009 8614284 5424213 1401385 1788686 see below
1
cip investment shares 06032013 304294 – – 304294 06032016
cip matching shares 06032013 1217176 – – 1217176 see below
2
cip investment shares 05032014 161922 – – 161922 05032017
cip investment shares 05032014 647688 – – 647688 see below
3
 20638405 9419450 5859745 5359210 
1 as indicated in the remuneration report in the annual report for the year ended 31 december 2009 the remuneration committee felt it inappropriate to set 
specific performance conditions for matching shares under the cip which were awarded in march 2008 and march 2009 
2 the release dates for the three tranches of the march 2013 cip matching shares are 6 march 2016 6 march 2017 and 6 march 2018 respectively 
3 the release dates for the three tranches of the march 2014 cip matching shares are 5 march 2017 5 march 2018 and 5 march 2019 respectively  wwwreguscom 81
governance strategic report financial statements
 
  wwwreguscouk 81 
governance financial statements strategic report
plan 2 regus plc coinvestment plan cip and long term incentive plan ltip 
the cip operates in conjunction with the annual bonus whereby a gross bonus of up to 50 of basic annual salary will be taken as a 
deferred amount of shares “investment shares” to be released at the end of a defined period of not less than three years with the 
balance paid in cash awards of matching shares are linked to the number of investment shares awarded and will vest depending on 
the company’s future performance the maximum number of matching shares which can be awarded to a participant in any calendar 
year under the cip is 200 of salary as such the maximum number of matching shares which can be awarded based on investment 
shares awarded is in the ratio of 41 
the ltip provides for the remuneration committee to make standalone longterm incentive awards without reference to the annual 
bonus up to a maximum of 100 of salary per calendar year 
reconciliation of outstanding share options 
 2014 2013
 
number of 
awards 
number of 
awards 
at 1 january 9377249 14742932
cip awards granted during the year 809610 1521470
ltip awards granted during the year – –
lapsed during the year 3056082 4725549
exercised during the year 1370488 2161604
outstanding at 31 december 5760289 9377249
exercisable at 31 december 24424 –
the weighted average share price at the date of exercise for share awards and options exercised during the year ended 31 december 
2014 was 22164p 2013 17022p 
plan date of grant 
numbers 
granted lapsed exercised 
at 31 dec  
2014 release date 
ltip 03112005 3723235 1092818 2605993 24424 03112008
ltip 23032010 2900472 2304207 596265 – 23032013
 6623707 3397025 3202258 24424 
 
plan date of grant 
numbers 
granted lapsed exercised 
at 31 dec  
2014 release date 
cip investment shares 18032008 1557391 86956 1470435 – 18032011
cip matching shares 18032008 5922916 3735446 948026 1239444 see below
1
cip investment shares 23032009 2212734 172835 2039899 – 23032012
cip matching shares 23032009 8614284 5424213 1401385 1788686 see below
1
cip investment shares 06032013 304294 – – 304294 06032016
cip matching shares 06032013 1217176 – – 1217176 see below
2
cip investment shares 05032014 161922 – – 161922 05032017
cip investment shares 05032014 647688 – – 647688 see below
3
 20638405 9419450 5859745 5359210 
1 as indicated in the remuneration report in the annual report for the year ended 31 december 2009 the remuneration committee felt it inappropriate to set 
specific performance conditions for matching shares under the cip which were awarded in march 2008 and march 2009 
2 the release dates for the three tranches of the march 2013 cip matching shares are 6 march 2016 6 march 2017 and 6 march 2018 respectively 
3 the release dates for the three tranches of the march 2014 cip matching shares are 5 march 2017 5 march 2018 and 5 march 2019 respectively 82 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
82 regus plc annual report and accounts 2014 
24 sharebased payment continued 
measurement of fair values 
the fair value of the rights granted through the employee share purchase plan was measured based on the monte carlo simulation 
the inputs to the model are as follows 
 05032014 06032013 23032010 23032009  18032008
 cip cip ltip
a
 cip
b
 cip
b
share price on grant date 25330p 14350p 10810p 6550p 8050p
exercise price nil nil nil nil nil
number of simulations 250000 250000 250000 200000  200000
number of companies 32 32 32 32  36
award life 3 years 3 years 3 years 3 years 3 years
expected dividend 166 223 222 272 119
fair value of award at time of grant 8311p–21433 8311p–13421p 4700p 4797p 6121p
risk free interest rate 099–147 035 186 192 386
a the ltip awards have a release date of 23 march 2013 there is no expiry date and therefore remaining contractual life is on the basis that the awards release 
immediately the ltip options have a vesting date of 23 march 2013 and an expiry of 23 march 2020 the performance conditions are set out below 
b the cip matching shares and share option plan awards made in 2008 and 2009 did not have performance conditions set by the remuneration committee  
at the date of the award a valuation was performed for those awards based on the terms that applied to similar awards made in previous years the 
remuneration committee set the performance conditions for the awards made in 2008 and 2009 effective from 22 march 2010 and the valuation of these 
awards was updated in the year ended 31 december 2010 
it is recognised by the remuneration committee that the additional eps targets represent a highly challenging goal and consequently 
in determining whether they have been met the committee will exercise its discretion the overall aim is that the relevant eps targets 
must have been met on a run rate or underlying basis as such an adjusted measure of eps will be calculated designed to assess the 
underlying performance of the business 
while the remuneration committee reserves the right to adjust eps as it sees fit at the time by way of example the following 
adjustments may be considered for the 2008 and 2009 grants 
• in a growth company such as regus costs are necessarily incurred in one year to drive profits in future years thus it is important  
to ensure management is not incentivised to cut back on these investments to meet eps targets in any one year accordingly those 
costs incurred in the vesting year which it considers necessary to drive future growth will be excluded from the eps calculation 
these would include inter alia the costs of the business development departments excess marketing expenditures and current 
year losses from investing in new locations 
• any oneoff or nonrecurring costs will be excluded 
• it is expected that in the relevant periods the cash tax rate will rise as cumulative tax losses are utilised thereby increasing 
progressively the challenge of achieving a 14p eps target this will then be further complicated by the need to recognise deferred 
tax assets as the business strengthens reducing the accounting rate of tax in one year and increasing it in the next to provide 
greater clarity and incentive to management eps will be calculated based upon the cash tax rate up to a maximum of 30 
• the remuneration committee is of the opinion that the eps and performance targets are a transparent and accurate measure of  
the company’s performance at this time and are the key corporate metrics for driving longterm shareholder value in addition  
the tsr condition will ensure that executives are encouraged to focus on ensuring that the company’s return to shareholders is 
competitive compared to comparable companies 
the performance conditions are as follows 
2008 and 2009 cip investment and matching grants 
the remuneration committee agreed to the following modifications to the awards made in 2008 and 2009 and that the following 
performance conditions would apply to these awards effective from 22 march 2010 
the total number of matching awards made in 2008 and 2009 to each participant was divided into three separate equal amounts and 
was subject to future performance periods of three four and five years respectively thus conditional on meeting the performance 
targets the first amount vested in march 2013 the second vested in march 2014 and the third vests in march 2015 these vesting 
dates relate to the financial years ending 31 december 2012 31 december 2013 and 31 december 2014 respectively the vesting of 
these awards is subject to the achievement of challenging corporate performance targets 75 of each of the three amounts is subject 
to defined earnings per share eps targets over the respective performance periods the remaining 25 of each will be subject to 
relative total shareholder return tsr targets over the respective periods the targets are as follows 
eps targets for the financial years ending
 of awards eligible for vesting 2012 2013 2014
25 15p 17p 18p
50 16p 20p 22p
75 17p 23p 26p
100 18p 26p 30p
  
 
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no shares will vest in each respective year unless the minimum eps target for that year is achieved 
 of awards eligible for vesting 
regus tsr  achieved relative to
ftse all share total return index
a
 
nil 100
25 above 100 but below 101
increments of 075 for each complete 1 above 100
100 200 or above
a over the three four or five year performance period 
2013 cip investment and matching grants 
the total number of matching awards made in 2013 to each participant was divided into three separate equal amounts and is subject 
to future performance periods of three four and five years respectively thus conditional on meeting the performance targets the 
first amount will vest in march 2016 the second will vest in march 2017 and the third will vest in march 2018 these vesting dates 
relate to the financial years ending 31 december 2015 31 december 2016 and 31 december 2017 respectively the vesting of these 
awards is subject to the achievement of challenging corporate performance targets 75 of each of the three amounts is subject to 
defined earnings per share eps targets over the respective performance periods the remaining 25 of each will be subject to 
relative total shareholder return tsr targets over the respective periods the targets are as follows 
eps targets for the financial years ending
 of awards eligible for vesting 2015 2016 2017
25 120p 140p 160p
50 126p 146p 166p
75 133p 153p 173p
100 140p 160p 180p
no shares will vest in each respective year unless the minimum eps target for that year is achieved 
 of awards eligible for vesting 
regus tsr  achieved relative to
ftse all share total return index
a
 
below index 0
equal to index 25
equal to index  15 pa 100
a over the three four or five year performance period 
2014 cip investment and matching grants 
the total number of matching awards made in 2014 to each participant was divided into three separate equal amounts and is subject 
to future performance periods of three four and five years respectively thus conditional on meeting the performance targets the 
first amount will vest in march 2017 the second will vest in march 2018 and the third will vest in march 2019 these vesting dates 
relate to the financial years ending 31 december 2016 31 december 2017 and 31 december 2018 respectively the vesting of these 
awards is subject to the achievement of challenging corporate performance targets 75 of each of the three amounts is subject to 
defined earnings per share eps targets over the respective performance periods the remaining 25 of each will be subject to 
relative total shareholder return tsr targets over the respective periods the targets are as follows 
eps targets for the financial years ending
 of awards eligible for vesting 2016 2017 2018
25 143p 161p 171p
50 152p 174p 189p
75 161p 188p 207p
100 170p 202p 225p
no shares will vest in each respective year unless the minimum eps target for that year is achieved 
 of awards eligible for vesting 
regus tsr  achieved relative to
ftse all share total return index
a
 
below index 0
median 25
upper quartile or above 100
a over the three four or five year performance period 
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no shares will vest in each respective year unless the minimum eps target for that year is achieved 
 of awards eligible for vesting 
regus tsr  achieved relative to
ftse all share total return index
a
 
nil 100
25 above 100 but below 101
increments of 075 for each complete 1 above 100
100 200 or above
a over the three four or five year performance period 
2013 cip investment and matching grants 
the total number of matching awards made in 2013 to each participant was divided into three separate equal amounts and is subject 
to future performance periods of three four and five years respectively thus conditional on meeting the performance targets the 
first amount will vest in march 2016 the second will vest in march 2017 and the third will vest in march 2018 these vesting dates 
relate to the financial years ending 31 december 2015 31 december 2016 and 31 december 2017 respectively the vesting of these 
awards is subject to the achievement of challenging corporate performance targets 75 of each of the three amounts is subject to 
defined earnings per share eps targets over the respective performance periods the remaining 25 of each will be subject to 
relative total shareholder return tsr targets over the respective periods the targets are as follows 
eps targets for the financial years ending
 of awards eligible for vesting 2015 2016 2017
25 120p 140p 160p
50 126p 146p 166p
75 133p 153p 173p
100 140p 160p 180p
no shares will vest in each respective year unless the minimum eps target for that year is achieved 
 of awards eligible for vesting 
regus tsr  achieved relative to
ftse all share total return index
a
 
below index 0
equal to index 25
equal to index  15 pa 100
a over the three four or five year performance period 
2014 cip investment and matching grants 
the total number of matching awards made in 2014 to each participant was divided into three separate equal amounts and is subject 
to future performance periods of three four and five years respectively thus conditional on meeting the performance targets the 
first amount will vest in march 2017 the second will vest in march 2018 and the third will vest in march 2019 these vesting dates 
relate to the financial years ending 31 december 2016 31 december 2017 and 31 december 2018 respectively the vesting of these 
awards is subject to the achievement of challenging corporate performance targets 75 of each of the three amounts is subject to 
defined earnings per share eps targets over the respective performance periods the remaining 25 of each will be subject to 
relative total shareholder return tsr targets over the respective periods the targets are as follows 
eps targets for the financial years ending
 of awards eligible for vesting 2016 2017 2018
25 143p 161p 171p
50 152p 174p 189p
75 161p 188p 207p
100 170p 202p 225p
no shares will vest in each respective year unless the minimum eps target for that year is achieved 
 of awards eligible for vesting 
regus tsr  achieved relative to
ftse all share total return index
a
 
below index 0
median 25
upper quartile or above 100
a over the three four or five year performance period 
   84 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
84 regus plc annual report and accounts 2014 
25 retirement benefit obligations 
the group accounts for the swiss pension plans as defined benefit plans under ias 19 revised – employee benefits  
the reconciliation of the net defined benefit assetliability and its components is as follows 
£m 31122014 31122013
fair value of plan assets 32 31
present value of obligations 34 33
net funded obligations 02 02
26 acquisitions 
during the year ended 31 december 2014 the group made a number of immaterial acquisitions for a total consideration of £1042m 
£m book value 
provisional  
fair value 
adjustments 
provisional 
fair value 
net assets acquired   
intangible assets 01 11 12
property plant and equipment 612 23 589
cash 98 – 98
other current and noncurrent assets 94 – 94
current liabilities 215 – 215
noncurrent liabilities 71 15 86
 519 27 492
goodwill arising on acquisition   550
total consideration   1042
less fair value adjustment of historical investment in acquired joint venture  27
less deferred consideration   17
   998
cash flow on acquisition   
cash paid   998
net cash outflow   998
the goodwill arising on the above acquisitions reflects the anticipated future benefits regus can obtain from operating the 
businesses more efficiently primarily through increasing occupancy and the addition of value adding products and services  
£133m of the above goodwill is expected to be deductible for tax purposes 
if the above acquisitions had occurred on 1 january 2014 the revenue and net retained profit arising from these acquisitions  
would have been £187m and £24m respectively in the year the equity acquisitions contributed revenue of £160m and net  
retained loss of £12m 
there was £17 contingent consideration arising on the above acquisitions 
the acquisition costs associated with these transactions were £13m recorded within administration expenses within the 
consolidated income statement 
the group continued to complete acquisition transactions subsequent to 31 december 2014 which will be accounted for in 
accordance with ifrs 3 due to the timing of these transactions it is not practical to disclose the information associated with the 
initial accounting for these acquisitions  
during the year ended 31 december 2013 the group made the following acquisitions 
name region 
purchase 
consideration 
£m 
percentage  
of equity and 
voting rights 
acquired date of acquisition 
equity share capital business acquisition  
mwb business exchange plc uk 494 7522 20 february 2013
the remaining 2478 mwb business exchange plc share capital was subsequently acquired on 22 march 2013 for a purchase 
consideration of £163m 
in addition to the above a further £568m of purchase consideration was paid to complete a further 12 business and net asset 
acquisitions during the year ended 31 december 2013 
the completion of business or net asset acquisitions is a key component of our strategic aim to expand our network 
 
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governance financial statements strategic report
mwb business exchange plc acquisition 
on 20 february 2013 the group acquired 7522 of mwb business exchange plc the remaining noncontrolling interest nci  
of 2478 was subsequently acquired on 22 march 2013 the subsequent acquisition of this nci was accounted for under the  
presentaccess method resulting in an equity transaction of £163m the total purchase consideration for mwb business  
exchange plc was £657m 
£m book value 
provisional
fair value 
adjustments 
provisional  
fair value 
final  
fair value 
adjustments 
final 
fair value 
net assets acquired   
intangible assets – 09 09 09 –
property plant and equipment 349 94 255 – 255
cash 68 – 68 – 68
other current and noncurrent assets 259 76 183 – 183
current liabilities 530 179 709 12 721
noncurrent liabilities 231 115 116 – 116
 85 225 310 21 331
noncontrolling interests 2478 recognised in the 
acquired net assets and liabilities of mwb business 
exchange plc
a
 77  77
goodwill arising on acquisition 727  748
total consideration 494  494
   
cash flow on acquisition   
cash paid 494  494
net cash outflow 494  494
a the remaining nci of 2478 was subsequently acquired on 22 march 2013 this subsequent acquisition was accounted for under the presentaccess method 
resulting in an equity transaction of £163m 
the goodwill arising on the above acquisition reflects the anticipated future benefits the group can obtain from operating the 
business more efficiently primarily through savings on overheads none of the above goodwill is expected to be deductible for  
tax purposes 
there was no contingent consideration arising on this acquisition 
the external acquisition costs associated with this transaction were £39m recorded within selling general and administration 
expenses within the consolidated income statement 
mwb business exchange was fully integrated into the overall operations of the group during 2013 the group is therefore unable  
to determine the contribution of mwb business exchange on the consolidated revenue and operating profit of the group 
other immaterial acquisitions aggregated 
£m book value 
provisional 
fair value 
adjustments 
provisional  
fair value 
final  
fair value 
adjustments 
final 
fair value 
net assets acquired   
intangible assets
a
 – 03 03 – 03
property plant and equipment 113 18 95 09 86
cash 64 – 64 06 58
other current and noncurrent assets 93 21 72 02 70
current liabilities 158 22 136 13 149
noncurrent liabilities 107 33 74 13 87
 05 19 24 43 19
goodwill arising on acquisition
b
553  600
total consideration 577  581
less deferred consideration 09  09
 568  572
cash flow on acquisition   
cash paid 568  572
net cash outflow 568  572
a intangible assets comprise the fair value of customer contracts or in the case of managed centres the fair value of the management contract acquired  
b the goodwill arising on acquisition includes negative goodwill of £25m the group received £28m compensation in respect of potential dilapidations costs  
the negative goodwill has been recognised as part of the selling general and administration expenses line item in the consolidated income statement 
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mwb business exchange plc acquisition 
on 20 february 2013 the group acquired 7522 of mwb business exchange plc the remaining noncontrolling interest nci  
of 2478 was subsequently acquired on 22 march 2013 the subsequent acquisition of this nci was accounted for under the  
presentaccess method resulting in an equity transaction of £163m the total purchase consideration for mwb business  
exchange plc was £657m 
£m book value 
provisional
fair value 
adjustments 
provisional  
fair value 
final  
fair value 
adjustments 
final 
fair value 
net assets acquired   
intangible assets – 09 09 09 –
property plant and equipment 349 94 255 – 255
cash 68 – 68 – 68
other current and noncurrent assets 259 76 183 – 183
current liabilities 530 179 709 12 721
noncurrent liabilities 231 115 116 – 116
 85 225 310 21 331
noncontrolling interests 2478 recognised in the 
acquired net assets and liabilities of mwb business 
exchange plc
a
 77  77
goodwill arising on acquisition 727  748
total consideration 494  494
   
cash flow on acquisition   
cash paid 494  494
net cash outflow 494  494
a the remaining nci of 2478 was subsequently acquired on 22 march 2013 this subsequent acquisition was accounted for under the presentaccess method 
resulting in an equity transaction of £163m 
the goodwill arising on the above acquisition reflects the anticipated future benefits the group can obtain from operating the 
business more efficiently primarily through savings on overheads none of the above goodwill is expected to be deductible for  
tax purposes 
there was no contingent consideration arising on this acquisition 
the external acquisition costs associated with this transaction were £39m recorded within selling general and administration 
expenses within the consolidated income statement 
mwb business exchange was fully integrated into the overall operations of the group during 2013 the group is therefore unable  
to determine the contribution of mwb business exchange on the consolidated revenue and operating profit of the group 
other immaterial acquisitions aggregated 
£m book value 
provisional 
fair value 
adjustments 
provisional  
fair value 
final  
fair value 
adjustments 
final 
fair value 
net assets acquired   
intangible assets
a
 – 03 03 – 03
property plant and equipment 113 18 95 09 86
cash 64 – 64 06 58
other current and noncurrent assets 93 21 72 02 70
current liabilities 158 22 136 13 149
noncurrent liabilities 107 33 74 13 87
 05 19 24 43 19
goodwill arising on acquisition
b
553  600
total consideration 577  581
less deferred consideration 09  09
 568  572
cash flow on acquisition   
cash paid 568  572
net cash outflow 568  572
a intangible assets comprise the fair value of customer contracts or in the case of managed centres the fair value of the management contract acquired  
b the goodwill arising on acquisition includes negative goodwill of £25m the group received £28m compensation in respect of potential dilapidations costs  
the negative goodwill has been recognised as part of the selling general and administration expenses line item in the consolidated income statement 
   86 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
86 regus plc annual report and accounts 2014 
26 acquisitions continued 
the goodwill arising on the above acquisitions reflects the anticipated future benefits regus can obtain from operating the 
businesses more efficiently primarily through increasing occupancy and the addition of value adding services £91m of the above 
goodwill is expected to be deductible for tax purposes 
there was no material contingent consideration arising on the above acquisitions 
the external acquisition costs associated with these transactions were £14m recorded within selling general and administration 
expenses within the interim consolidated income statement 
27 capital commitments 
 
2014  
£m 
2013
£m 
contracts placed for future capital expenditure not provided for in the financial statements 263 144
these commitments are principally in respect of fitout obligations on new centres opening in 2013 in addition our share of the 
capital commitments of joint ventures amounted to £nil at 31 december 2014 2013 £nil 
28 noncancellable operating lease commitments 
at 31 december 2014 the group was committed to making the following payments in respect of operating leases 
 2014 2013 
 
property 
£m 
motor vehicles 
plant and 
equipment 
£m 
total 
£m 
property  
£m 
motor vehicles 
plant and 
equipment  
£m 
total 
£m 
lease obligations falling due   
within one year 5941 69 6010 5163 51 5214
between two and five years 16599 125 16724 14821 106 14927
after five years 6840 29 6869 5442 06 5448
 29380 223 29603 25426 163 25589
noncancellable operating lease commitments exclude future contingent rental amounts such as the variable amounts payable  
under performance based leases where the rents vary in line with a centre’s performance 
29 contingent assets and liabilities 
the group has bank guarantees and letters of credit held with certain banks substantially in support of leasehold contracts with  
a variety of landlords amounting to £1152m 2013 £1099m there are no material lawsuits pending against the group 
  
 
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30 related parties 
parent and subsidiary entities 
the consolidated financial statements include the results of the group and the subsidiaries listed in note 31 
joint ventures 
the following table provides the total amount of transactions that have been entered into with related parties for the relevant  
financial year 
£m 
management 
fees received 
from related 
parties 
amounts  
owed by  
related party 
amounts 
owed to 
related party 
2014   
joint ventures 22 35 46
2013   
joint ventures 22 52 52
as at 31 december 2014 none of the amounts due to the group has been provided for 2013 £nil all outstanding balances with  
these related parties are priced on an arm’s length basis none of the balances is secured 
key management personnel 
no loans or credit transactions were outstanding with directors or officers of the company at the end of the year or arose during  
the year that are required to be disclosed  
compensation of key management personnel including directors  
key management personnel include those personnel including directors that have responsibility and authority for planning 
directing and controlling the activities of the group 
 
2014  
£m 
2013
£m 
shortterm employee benefits 97 67
retirement benefit obligations 04 04
sharebased payments 22 09
 123 80
sharebased payments included in the table above reflect the accounting charge in the year the full fair value of awards granted  
in the year was £27m 2013 £25m these awards are subject to performance conditions and vest over three four and five years from 
the award date 
transactions with related parties 
during the year ended 31 december 2014 the group acquired goods and services from a company indirectly controlled by a director  
of the company amounting to £44039 2013 £32298 there was a £2723 balance outstanding at the yearend 2013 10862  
all outstanding balances with these related parties are priced on an arm’s length basis and are to be settled in cash none of the 
balances is secured 
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30 related parties 
parent and subsidiary entities 
the consolidated financial statements include the results of the group and the subsidiaries listed in note 31 
joint ventures 
the following table provides the total amount of transactions that have been entered into with related parties for the relevant  
financial year 
£m 
management 
fees received 
from related 
parties 
amounts  
owed by  
related party 
amounts 
owed to 
related party 
2014   
joint ventures 22 35 46
2013   
joint ventures 22 52 52
as at 31 december 2014 none of the amounts due to the group has been provided for 2013 £nil all outstanding balances with  
these related parties are priced on an arm’s length basis none of the balances is secured 
key management personnel 
no loans or credit transactions were outstanding with directors or officers of the company at the end of the year or arose during  
the year that are required to be disclosed  
compensation of key management personnel including directors  
key management personnel include those personnel including directors that have responsibility and authority for planning 
directing and controlling the activities of the group 
 
2014  
£m 
2013
£m 
shortterm employee benefits 97 67
retirement benefit obligations 04 04
sharebased payments 22 09
 123 80
sharebased payments included in the table above reflect the accounting charge in the year the full fair value of awards granted  
in the year was £27m 2013 £25m these awards are subject to performance conditions and vest over three four and five years from 
the award date 
transactions with related parties 
during the year ended 31 december 2014 the group acquired goods and services from a company indirectly controlled by a director  
of the company amounting to £44039 2013 £32298 there was a £2723 balance outstanding at the yearend 2013 10862  
all outstanding balances with these related parties are priced on an arm’s length basis and are to be settled in cash none of the 
balances is secured 
   88 regus plc annual report and accounts 2014
notes to the accounts continued notes to the accounts continued 
88 regus plc annual report and accounts 2014 
31 principal group companies 
the group’s principal subsidiary undertakings at 31 december 2014 their principal activities and countries of incorporation are set  
out below 
name of undertaking 
country of 
incorporation 
 of 
ordinary 
share and 
votes 
held name of undertaking 
country of 
incorporation 
 of 
ordinary 
share and 
votes 
held 
principal activity – trading companies   principal activity – holding companies  
regus do brasil ltda brazil 100 rgn limited partner holdings corp canada 100
regus paris sas france 100 regus holdings sas france 100
regus gmbh  co kg germany 100 regus gmbh  co kg germany 100
excellent business centres gmbh  germany 100 regus business services hk limited hong kong 100
regus business centres italia srl italy 100 umbrella holdings sarl luxembourg 100
regus japan kk japan 100 regus group limited united kingdom 100
regus management de mexicosa de cv mexico 100 marley acquisitions limited united kingdom 100
regus amsterdam bv netherlands 100 business exchange holdings limited united kingdom 100
regus business centre llc russia 100 regus estates uk limited united kingdom 100
regus management singapore pte ltd singapore 100 regus centres uk limited united kingdom 100
regus management group pty ltd  south africa 100 regus corporation llc united states 100
regus management españa sl spain 100 regus h holdings llc united states 100
regus business centre sa switzerland 100 
abc business centres limited united kingdom 100 
acorn offices limited united kingdom 100 
mwb business exchange centres ltd united kingdom 100 
stonemartin corporate centre limited united kingdom 100 
hq global workplaces llc united states 100 
regus equity business centres llc united states 100 
rgn national business centre llc united states 100 
office suites plus properties llc united states 100 
regus business centres llc united states 100 
principal activity – management 
companies 
   
regus business centres sas france 100 
rbw global sarl luxembourg 100 
pathway finance sarl luxembourg 100 
pathway ip sarl luxembourg  100 
regus middle east sarl luxembourg 100 
regus service centre philippines bv philippines 100 
regus global management centre sa switzerland 100 
regus group services ltd united kingdom 100 
regus management uk ltd united kingdom 100 
regus management group llc united states 100 
regus international services sa uruguay 100 
  
 
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32 key judgemental areas adopted in preparing these accounts 
the preparation of consolidated financial statements in accordance with ifrs requires management to make certain judgements and 
assumptions that affect reported amounts and related disclosures 
fair value accounting for business combinations 
for each business combination we assess the fair values of assets and liabilities acquired where there is not an active market in the 
category of the noncurrent assets typically acquired with a business centre or where the books and records of the acquired company 
do not provide sufficient information to derive an accurate valuation management calculates an estimated fair value based on 
available information and experience  
the main categories of acquired noncurrent assets where management’s judgement has an impact on the amounts recorded include 
tangible fixed assets customer list intangibles and the fair market value of leasehold assets and liabilities for significant business 
combinations management also obtains thirdparty valuations to provide additional guidance as to the appropriate valuation to be 
included in the financial statements  
valuation of intangibles and goodwill 
we evaluate the fair value of goodwill and intangibles to assess potential impairments on an annual basis or during the year if an 
event or other circumstance indicates that we may not be able to recover the carrying amount of the asset we evaluate the carrying 
value of goodwill at the appropriate cashgenerating unit level and make that determination based upon future cash flow projections 
which assume certain growth projections which may or may not occur we record an impairment loss for goodwill when the carrying 
value of the intangible asset is less than its estimated recoverable amount further details of the methodology and assumptions 
applied to the impairment review in the year ended 31 december 2013 including the sensitivity to changes in those assumptions  
can be found in note 11 
tax assets and liabilities 
we base our estimate of deferred tax assets and liabilities on current tax laws and rates and in certain cases business plans and  
other expectations about future outcomes changes in existing laws and rates and their related interpretations and future business 
results may affect the amount of deferred tax liabilities or the valuation of deferred tax assets over time our accounting for deferred 
tax consequences represents management’s best estimate of future events that can be appropriately reflected in the accounting 
estimates it is current group policy to recognise a deferred tax asset when it is probable that future taxable profits will be available 
against which the assets can be used the group considers it probable if the entity has made a taxable profit in the previous year and 
is forecast to continue to make a profit in the foreseeable future where appropriate the group assesses the potential risk of future 
tax liabilities arising from the operation of its business in multiple tax jurisdictions and includes provisions within tax liabilities for 
those risks that can be estimated reliably changes in existing tax laws can affect large international groups similar to regus and 
could result in significant additional tax liabilities over and above those already provided for 
onerous lease provisions 
we have identified certain poor performing centres where the lease is considered onerous ie the group does not expect to recover 
the unavoidable lease costs up to the first break point the accounts include a provision for our estimate of the net amounts payable 
under the terms of the lease to the first break point discounted at the group weighted average cost of capital where appropriate 
dilapidations 
certain of our leases with landlords include a clause obliging the group to hand the property back in the condition as at the date  
of signing the lease the costs to bring the property back to that condition are not known until the group exits the property so the 
group estimates the costs at each balance sheet date however given that landlords often regard the nature of changes made  
to properties as improvements the group estimates that it is unlikely that any material dilapidation payments will be necessary 
consequently provision has been made only for those potential dilapidation payments when it is probable that an outflow will  
occur and can be reliably estimated   wwwreguscom 89
governance strategic report financial statements
 
  wwwreguscouk 89 
governance financial statements strategic report
32 key judgemental areas adopted in preparing these accounts 
the preparation of consolidated financial statements in accordance with ifrs requires management to make certain judgements and 
assumptions that affect reported amounts and related disclosures 
fair value accounting for business combinations 
for each business combination we assess the fair values of assets and liabilities acquired where there is not an active market in the 
category of the noncurrent assets typically acquired with a business centre or where the books and records of the acquired company 
do not provide sufficient information to derive an accurate valuation management calculates an estimated fair value based on 
available information and experience  
the main categories of acquired noncurrent assets where management’s judgement has an impact on the amounts recorded include 
tangible fixed assets customer list intangibles and the fair market value of leasehold assets and liabilities for significant business 
combinations management also obtains thirdparty valuations to provide additional guidance as to the appropriate valuation to be 
included in the financial statements  
valuation of intangibles and goodwill 
we evaluate the fair value of goodwill and intangibles to assess potential impairments on an annual basis or during the year if an 
event or other circumstance indicates that we may not be able to recover the carrying amount of the asset we evaluate the carrying 
value of goodwill at the appropriate cashgenerating unit level and make that determination based upon future cash flow projections 
which assume certain growth projections which may or may not occur we record an impairment loss for goodwill when the carrying 
value of the intangible asset is less than its estimated recoverable amount further details of the methodology and assumptions 
applied to the impairment review in the year ended 31 december 2013 including the sensitivity to changes in those assumptions  
can be found in note 11 
tax assets and liabilities 
we base our estimate of deferred tax assets and liabilities on current tax laws and rates and in certain cases business plans and  
other expectations about future outcomes changes in existing laws and rates and their related interpretations and future business 
results may affect the amount of deferred tax liabilities or the valuation of deferred tax assets over time our accounting for deferred 
tax consequences represents management’s best estimate of future events that can be appropriately reflected in the accounting 
estimates it is current group policy to recognise a deferred tax asset when it is probable that future taxable profits will be available 
against which the assets can be used the group considers it probable if the entity has made a taxable profit in the previous year and 
is forecast to continue to make a profit in the foreseeable future where appropriate the group assesses the potential risk of future 
tax liabilities arising from the operation of its business in multiple tax jurisdictions and includes provisions within tax liabilities for 
those risks that can be estimated reliably changes in existing tax laws can affect large international groups similar to regus and 
could result in significant additional tax liabilities over and above those already provided for 
onerous lease provisions 
we have identified certain poor performing centres where the lease is considered onerous ie the group does not expect to recover 
the unavoidable lease costs up to the first break point the accounts include a provision for our estimate of the net amounts payable 
under the terms of the lease to the first break point discounted at the group weighted average cost of capital where appropriate 
dilapidations 
certain of our leases with landlords include a clause obliging the group to hand the property back in the condition as at the date  
of signing the lease the costs to bring the property back to that condition are not known until the group exits the property so the 
group estimates the costs at each balance sheet date however given that landlords often regard the nature of changes made  
to properties as improvements the group estimates that it is unlikely that any material dilapidation payments will be necessary 
consequently provision has been made only for those potential dilapidation payments when it is probable that an outflow will  
occur and can be reliably estimated  90 regus plc annual report and accounts 2014
parent company accounts
parent company accounts 
90 regus plc annual report and accounts 2014 
summarised extract of company balance sheet prepared under luxembourg gaap 
 
as at  
31 dec 2014 
luxembourg 
gaap  
£m 
as at 
31 dec 2013 
luxembourg 
gaap 
£m 
assets  
c fixed assets  
iii financial assets  
1 shares in affiliated undertakings 6834 7193
2 loans to affiliated undertakings – –
4 loans to undertakings with which the company is linked by virtue of participating interests – –
d current assets  
ii debtors  
2 amount owed by affiliated undertakings  09 13
a becoming due and payable within one year  
iii transferable securities  
2 own shares  199 41
12883455 shares of £001 per share 2013 5257380 shares 
iv cash at bank and in hand – –
e prepayments 06 01
total assets 7048 7248
liabilities  
a capital and reserves  
i subscribed capital 95 95
ii share premium and similar premiums 537 537
iv reserves  
1 legal reserve 09 09
2 reserve for own shares 199 41
4 other reserves 5001 5159
v results brought forward 1050 1468
vi results for the financial year 95 77
vii interim dividends 118 104
 6678 7128
c provisions   
2 provisions for taxation 01 01
3 other provisions – –
d nonsubordinated debts  
4 trade creditors  05 05
a becoming due and payable within one year  
6 amounts owed to affiliated undertakings   
a becoming due and payable within one year  04 04
b becoming dividend payable after more than one year 360 110
 370 119
total liabilities 7048 7248
approved by the board on 3 march 2015 
mark dixon   dominique yates 
chief executive officer  chief financial officer 
  
 
  wwwreguscouk 91 
governance financial statements strategic report
accounting policies 
basis of preparation 
the annual accounts have been prepared in accordance with luxembourg legal and regulatory requirements under the historical  
cost convention which differs in material respects from ifrs in both the measurement and presentation of certain transactions 
the company is included in the consolidated financial statements of regus plc 
the balance sheet has been extracted from the full accounts of regus plc for the period ended 31 december 2014 which are available 
from the company’s registered office 26 boulevard royal luxembourg and which will be filed with both the luxembourg register  
of commerce and the jersey register of companies 
financial assets 
shares in affiliated undertakings are valued at purchase price including acquisition costs where any permanent diminution in value 
is identified value adjustments are recorded in the profit and loss account these value adjustments are not continued if the reasons 
which caused their initial recording cease to apply   wwwreguscom 91
governance strategic report financial statements
 
  wwwreguscouk 91 
governance financial statements strategic report
accounting policies 
basis of preparation 
the annual accounts have been prepared in accordance with luxembourg legal and regulatory requirements under the historical  
cost convention which differs in material respects from ifrs in both the measurement and presentation of certain transactions 
the company is included in the consolidated financial statements of regus plc 
the balance sheet has been extracted from the full accounts of regus plc for the period ended 31 december 2014 which are available 
from the company’s registered office 26 boulevard royal luxembourg and which will be filed with both the luxembourg register  
of commerce and the jersey register of companies 
financial assets 
shares in affiliated undertakings are valued at purchase price including acquisition costs where any permanent diminution in value 
is identified value adjustments are recorded in the profit and loss account these value adjustments are not continued if the reasons 
which caused their initial recording cease to apply  92 regus plc annual report and accounts 2014
segmental analysis
segmental analysis 
92 regus plc annual report and accounts 2014 
segmental analysis – management basis unaudited 
  
americas 
2014 
emea 
2014 
asia pacific
2014 
united  
kingdom 
2014 
other 
2014 
total
2014 
 mature
1
   
 workstations
4
 101524 42293 44058 35247 – 223122
 occupancy  820 806 826 831 – 820
 revenue £m 5798 2909 2147 2195 06 13055
 contribution £m 1666 778 655 512 11 3622
 revpow 6966 8538 5900 7493 – 7134
    
 2013 expansions
2
   
 workstations
4
 24905 12041 8515 16288 – 61749
 occupancy  671 668 596 845 – 706
 revenue £m 854 566 186 1305 – 2911
 contribution £m 85 58 04 317 – 294
    
 2014 expansions
2
   
 workstations
4
 4845 6510 6156 7977 – 25488
 occupancy  427 490 350 755 – 527
 revenue £m 116 201 83 328 – 728
 contribution £m
6
 80 39 53 107 – 65
    
 closures   
 workstations
4
 391 430 182 525 – 1528
 occupancy  651 650 529 626 – 628
 revenue £m 11 19 04 33 – 67
 contribution £m 08 07 – 04 – 11
    
 total   
 workstations
4
 131665 61274 58911 60037 – 311887
 occupancy  777 744 742 823 – 773
 revenue £m 6779 3695 2420 3861 06 16761
 contribution £m 1493 790 606 940 11 3840
 unallocated contribution £m – – – – – 09
 revpaw £ 5149 6030 4108 6431 – 5374
    
 period end workstations
5
   
 mature 101478 42829 44341 35812 – 224460
 2013 expansions 24960 12395 8631 16094 – 62080
 2014 expansions 12384 15763 16607 11433 – 56187
 total 138822 70987 69579 63339 – 342727
 
  
 
  wwwreguscouk 93 
governance financial statements strategic report
segmental analysis – management basis unaudited 
  
americas 
2013 
emea 
2013 
asia pacific
2013 
united  
kingdom 
2013 
other 
2013 
total
2013 
 mature
1
   
 workstations
4
 101858 41929 43391 35736 – 222914
 occupancy  832 809 779 826 – 816
 revenue £m 6039 3107 2198 2126 17 13487
 contribution £m 1718 813 606 498 16 3651
 revpow 7126 9160 6503 7202 – 7415
    
 2013 expansions
2
   
 workstations
4 
 10961 3548 3492 13637 – 31638
 occupancy  546 528 312 812 – 633
 revenue £m 284 163 44 1077 – 1568
 contribution £m 145 15 33 257 – 64
    
 closures   
 workstations
4
 2165 1496 305 1257 – 5223
 occupancy  731 760 632 851 – 762
 revenue £m 74 109 09 88 – 280
 contribution £m – 08 03 42 – 53
    
 total   
 workstations
4
 114984 46973 47188 50630 – 259775
 occupancy  803 786 743 823 – 793
 revenue £m 6397 3379 2251 3291 17 15335
 contribution £m 1573 806 576 797 16 3768
 unallocated contribution £m – – – – – 30
 revpaw £ 5563 7193 4770 6500 – 5903
notes 
1 the mature business comprises centres not opened in the current or previous financial year 
2 expansions include new centres opened and acquired businesses 
3 a closure for the 2013 comparative data is defined as a centre closed during the period from 1 january 2013 to 31 december 2014 
4 workstation numbers are calculated as the weighted average for the year 
5 workstations available at period end 
6 2014 expansions includes any costs incurred in 2014 for centres which will open in 2015
   wwwreguscom 93
governance strategic report financial statements
 
  wwwreguscouk 93 
governance financial statements strategic report
segmental analysis – management basis unaudited 
  
americas 
2013 
emea 
2013 
asia pacific
2013 
united  
kingdom 
2013 
other 
2013 
total
2013 
 mature
1
   
 workstations
4
 101858 41929 43391 35736 – 222914
 occupancy  832 809 779 826 – 816
 revenue £m 6039 3107 2198 2126 17 13487
 contribution £m 1718 813 606 498 16 3651
 revpow 7126 9160 6503 7202 – 7415
    
 2013 expansions
2
   
 workstations
4 
 10961 3548 3492 13637 – 31638
 occupancy  546 528 312 812 – 633
 revenue £m 284 163 44 1077 – 1568
 contribution £m 145 15 33 257 – 64
    
 closures   
 workstations
4
 2165 1496 305 1257 – 5223
 occupancy  731 760 632 851 – 762
 revenue £m 74 109 09 88 – 280
 contribution £m – 08 03 42 – 53
    
 total   
 workstations
4
 114984 46973 47188 50630 – 259775
 occupancy  803 786 743 823 – 793
 revenue £m 6397 3379 2251 3291 17 15335
 contribution £m 1573 806 576 797 16 3768
 unallocated contribution £m – – – – – 30
 revpaw £ 5563 7193 4770 6500 – 5903
notes 
1 the mature business comprises centres not opened in the current or previous financial year 
2 expansions include new centres opened and acquired businesses 
3 a closure for the 2013 comparative data is defined as a centre closed during the period from 1 january 2013 to 31 december 2014 
4 workstation numbers are calculated as the weighted average for the year 
5 workstations available at period end 
6 2014 expansions includes any costs incurred in 2014 for centres which will open in 2015
  94 regus plc annual report and accounts 2014
posttax cash return on net investment
posttax cash return on net investment 
94 regus plc annual report and accounts 2014 
the purpose of this page is to reconcile some of the key numbers used in the returns calculation back to the group’s audited statutory 
accounts and thereby give the reader greater insight into the returns calculation drivers the methodology and rationale for the 
calculation are discussed in the chief financial officer’s review on page 16 of these accounts 
description reference 
2011 
aggregation 
2012 
expansions 
2013 
expansions 
2014 
expansions 
2015 
expansions closed total 
revenue 
income statement 
p50 11514 1541 2911 728 00 67 16761
centre contribution 
income statement 
p50 3345 268 294 57 08 11 3831
profitloss on disposal of assets 
ebit reconciliation 
analysed below 18 00 01 00 00 10 09
underlying centre contribution 
 
3327 268 293 57 08 01 3822
selling general and administration 
expenses
1
 
income statement 
p50 
1669 290 578 249 02 08 2796
ebit 
ebit reconciliation 
analysed below 1658 22 285 306 10 09 1026
depreciation and amortisation 
note 5 p62 
648 159 307 78 00 14 1205
amortisation of partner contributions
note 5 p62 
160 25 62 17 00 02 266
amortisation of acquired lease fair 
value adjustments 
note 5 p62 
32 00 17 03 00 00 52
noncash items 
 
455 133 228 58 00 12 887
taxation
 2
 
 
332 04 57 61 02 02 205
adjusted net cash profit 
 
1781 116 00 187 08 05 1708
maintenance capital expenditure 
capital expenditure 
analysed below 454 85 00 00 00 00 538
partner contributions 
partner 
contributions 
analysed below 146 31 00 00 00 00 177
net maintenance capital expenditure
 
307 54 00 00 00 00 361
posttax cash return 
 
1474 62 00 187 08 05 1347
 
 
  
growth capital expenditure
 3
 
capital expenditure 
analysed below 8007 1701 3130 2407 43 00 15288
partner contributions
 4
 
partner 
contributions 
analysed below 952 233 630 446 00 00 2261
net investment 
 
7055 1468 2500 1961 43 00 13027
 
 
  
posttax cash return on net investment 
 
209 42 00 95 – – 103
1 including research and development expenses 
2 based on ebit at the group’s long term effective tax rate of 20 
3 the 2013 expansions includes £86m of capital expenditure arising in 2014 
4 the 2013 expansions includes £26m of partner contributions arising in 2014 
5 2015 expansions relate to costs and investments incurred in 2014 for centres which will open in 2015 
 
2014 
ebit reconciliation reference £m 
ebit 
 
1026 
profit on disposal of 
assets 
note 5 p62 
09 
share of profit on 
joint ventures 
income 
statement 
p50 08 
operating profit 
income 
statement 
p50 1043 
2014 
partner contributions reference £m
opening partner 
contributions  1428
• current note 16 p70 259
• noncurrent note 16 p70 1169
acquired in the 
period  15
received in the 
period  649
• 2012 expansions 
and before  177
• 2013 expansions
4
 26
• 2014 expansions 446
utilised in the period note 5 p62 266
exchange differences 73
closing partner 
contributions  1899
• current note 16 p70 352
• noncurrent note 16 p70 1547
2014 
capital expenditure reference £m
maintenance capital 
expenditure 
cfo review 
p18 
538
growth capital 
expenditure 
cfo review 
p18 
• 2013 expansions
3
 
 
86
• 2014 expansions 
 
2407
• 2015 expansions 
 
43
total capital 
expenditure 
 
3074
analysed as 
 
• purchase of 
subsidiary 
undertakings 
cash flow 
p54 
910
• purchase of 
property plant and 
equipment 
cash flow 
p54 
note 13 p69 
2054
• purchase of 
intangible assets 
cash flow 
p54 
note 12 p68 110
 
five year summary 
  wwwreguscouk 95 
strategic report governance financial statements
 
full year ended 
31 dec 2014 
£m 
full year ended 
31 dec 2013 
£m 
full year ended 
31 dec 2012  
£m 
full year ended 
31 dec 2011  
£m 
full year ended 
31 dec 2010 
£m 
revenue 16761 15335 12441 11626 10404
cost of sales before nonrecurring costs 12930 11597 9234 8835 8231
nonrecurring cost of sales – – – – 119
cost of sales 12930 11597 9234 8835 8350
gross profit centre contribution 3831 3738 3207 2791 2054
administration expenses before nonrecurring expenses 2709 2759 2257 2216 1907
research  development 87 72 45 31 26
nonrecurring administration expenses – – – – 39
administration expenses 2796 2831 2302 2247 1972
operating profit 1035 907 905 544 82
share of posttax profitloss of joint ventures  08 01 03 01 13 
profit before financing costs 1043 908 902 545 95
finance expense 173 105 59 64 21
finance income 01 12 08 13 18
profit before tax for the year 871 815 851 494 92
tax chargecredit 172 146 142 90 59
profit after tax for the year 699 669 709 404 33
   
attributable to   
equity shareholders of the parent 699 669 709 417 29
minority interests – – – 13 04
 699 669 709 404 33
earnings per ordinary share eps  
basic p 74p 71p 75p 43p 03p
diluted p 72p 70p 75p 43p 03p
weighted average number of shares outstanding ‘000’s 944082 943775 941922 941899 947463
balance sheet data as at 31 december   
intangible assets 5499 4917 3639 3313 3308 
property plant and equipment 7188 6087 4375 3335 2795
deferred tax assets 400 334 339 322 366
trade and other receivables 5652 4238 3339 3192 2999
cash cash equivalents and liquid investments 728 847 1323 1975 2046
total assets 19467 16423 13015 12137 11514
current liabilities 8919 7588 6125 5784 5418 
noncurrent liabilities 5131 3644 1570 1264 1058
provisions 43 49 46 82 98 
equity minority interests – – – – 01 
equity shareholders’ funds 5374 5142 5274 5007 4939
total liabilities and shareholders’ funds 19467 16423 13015 12137 11514  wwwreguscom 95
governance strategic report financial statements
five year summary
five year summary 
  wwwreguscouk 95 
strategic report governance financial statements
 
full year ended 
31 dec 2014 
£m 
full year ended 
31 dec 2013 
£m 
full year ended 
31 dec 2012  
£m 
full year ended 
31 dec 2011  
£m 
full year ended 
31 dec 2010 
£m 
revenue 16761 15335 12441 11626 10404
cost of sales before nonrecurring costs 12930 11597 9234 8835 8231
nonrecurring cost of sales – – – – 119
cost of sales 12930 11597 9234 8835 8350
gross profit centre contribution 3831 3738 3207 2791 2054
administration expenses before nonrecurring expenses 2709 2759 2257 2216 1907
research  development 87 72 45 31 26
nonrecurring administration expenses – – – – 39
administration expenses 2796 2831 2302 2247 1972
operating profit 1035 907 905 544 82
share of posttax profitloss of joint ventures  08 01 03 01 13 
profit before financing costs 1043 908 902 545 95
finance expense 173 105 59 64 21
finance income 01 12 08 13 18
profit before tax for the year 871 815 851 494 92
tax chargecredit 172 146 142 90 59
profit after tax for the year 699 669 709 404 33
   
attributable to   
equity shareholders of the parent 699 669 709 417 29
minority interests – – – 13 04
 699 669 709 404 33
earnings per ordinary share eps  
basic p 74p 71p 75p 43p 03p
diluted p 72p 70p 75p 43p 03p
weighted average number of shares outstanding ‘000’s 944082 943775 941922 941899 947463
balance sheet data as at 31 december   
intangible assets 5499 4917 3639 3313 3308 
property plant and equipment 7188 6087 4375 3335 2795
deferred tax assets 400 334 339 322 366
trade and other receivables 5652 4238 3339 3192 2999
cash cash equivalents and liquid investments 728 847 1323 1975 2046
total assets 19467 16423 13015 12137 11514
current liabilities 8919 7588 6125 5784 5418 
noncurrent liabilities 5131 3644 1570 1264 1058
provisions 43 49 46 82 98 
equity minority interests – – – – 01 
equity shareholders’ funds 5374 5142 5274 5007 4939
total liabilities and shareholders’ funds 19467 16423 13015 12137 11514 96 regus plc annual report and accounts 2014
shareholder information
shareholder information 
96 regus plc annual report and accounts 2014 
corporate directory 
secretary and registered office 
tim regan company secretary 
regus plc société anonyme 
registered office  registered head office 
22 grenville street  26 boulevard royal 
st helier   l2449 luxembourg 
jersey 
je4 8px 
 
registered number 
jersey   luxembourg 
101523   rcs b 141 159 
registrars 
capita registrars jersey limited 
12 castle street 
st helier 
jersey je2 3rt 
auditor 
kpmg luxembourg société cooperative 
39 avenue john f kennedy 
l1855 luxembourg 
 
legal advisers to the company as to english law 
slaughter and may 
one bunhill row 
london ec1y 8yy 
legal advisers to the company as to luxembourg law 
mnks 
vertigo polaris building 
2 – 4 rue eugène ruppert 
l2453 luxembourg 
corporate stockbrokers 
investec bank plc 
2 gresham street 
london ec2v 7qp  
jp morgan cazenove 
25 bank street 
canary wharf 
london e14 5jp 
financial pr advisors 
brunswick group llp 
16 lincoln’s inn fields 
london wc2a 3ed 
 
 
 
 
 
glossary 
available workstations 
the total number of workstations in the group also termed 
inventory during the year this is expressed as a weighted 
average at period ends the absolute number is used  
centre contribution 
gross profit comprising centre revenues less direct operating 
expenses but before administrative expenses 
ebitda 
earnings before interest tax depreciation and amortisation 
ebitdar 
earnings before interest tax depreciation amortisation and rent 
enquiries 
client enquiries about regus products or services 
expansions 
a general term which includes new business centres established 
by regus and acquired centres in the year 
forward order book 
the future workstation revenue already contracted with clients  
at a point in time 
posttax cash return 
ebitda achieved less the amortisation of any partner capital 
contribution less tax based on the ebit and after deducting 
maintenance capital expenditure
 
 
 
 
 
 
like for like 
the financial performance from centres owned and operated for  
a full 12 month period prior to the start of the financial year which 
therefore have a full year comparative 
mature business 
operations owned for a full 12 month period prior to the start of 
the financial year which therefore have a full year comparative 
occupancy 
occupied workstations divided by available workstations 
expressed as a percentage 
occupied workstations 
workstations which are in use by clients this is expressed  
as a weighted average for the year  
revpaw 
total revenue per available workstation revenueavailable 
workstations 
revpow 
total revenue per occupied workstation 
wipow 
workstation income per occupied workstation  visit wwwreguscom  
for more information regus plc sa 
26 boulevard royal 
l2449 luxembourg
wwwreguscom
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®
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which promotes responsible management of the world’s forests 
forest certification is combined with a system of product labelling 
that allows consumers to readily identify timberbased products from 
certified forests
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regus plc annual report and accounts 2014


Summary:
 strategic report governance financial statements
 wwwreguscom 1
key financial highlights key growth highlights
• group operating profit increased 27 to £1043m at  
constant currency 
• strong cash performance with £1756m 186p per share  
of cash generated before net growth capital expenditure  
and dividends
• grew the network by 24 at a significantly lower average cost 
of investment
• proforma net debt of £55m adjusting for post yearend 
property disposals see cfo’s review on page 19 for details  
we selffunded growth in 2014
• achieving attractive returns on investment – 209 2014 
posttax cash return on all net investment made up to  
31 december 2011 
• group revenue increased by 158 to £16761m at  
constant currency
• 11 increase in full year dividend to 40p
• 166 new towns and cities added in year increasing depth  
and breadth of national networks 
• now in 850 towns and cities
• 452 new locations added
• increasing network to 2269 locations 
• across 104 countries 
• £207m of net capital invested in growth
• achieving significantly lower average cost of investment  
per location due to geographic and size mix and new formats
2014 posttax cash return on net investment by year group 
153
149
243
180
268
214
aggregate total return on net investment up to 2011 209
11 10 09 08 07
06 and earlier
turn to page 9 for details on how we calculate our posttax cash return on net investment
 now incorporates third place locations not previously included
14 13 12 11 10
number of locations
2269
1831
1411
1203
1084
2269
14 13 12 11 10
net growth capital expenditure £m
2066
2602
1478
712
571
£2066m
14 13 12 11 10
cash flow before growth capital 
expenditure and dividends £m
1756
1154
1124
977
418
£1756m