the world
in one
workplace
regus plc annual report
and accounts 2013
tm the global 
workplace provider
our purpose is to provide businesses with a 
network of high quality workplaces that help 
them be more effective and successful
more information is available online at wwwreguscouk strategic report governance financial statements
  wwwreguscominvestors 1
see p04 for more detail  see p06 for more detail  see p10 for more detail 
in this report
strategic report
02 business overview 
03 performance highlights
04 market and key growth drivers
06 our business model
08 a unique network
10  developing new products 
and services
12 strategy and kpis
14 chairman’s statement
15 chief executive ofﬁ cer’s review
19 chief financial ofﬁ cer’s review
24 principal risks
28 corporate responsibility
governance
32 board of directors
33 corporate governance
38 audit committee report
41 remuneration report
54 directors’ report
56 directors’ statements
57 auditors’ report
financial statements
58 consolidated income statement
59  consolidated statement 
of comprehensive income
60  consolidated statement of
changes in equity
61 consolidated balance sheet
62  consolidated statement of
cash ﬂ ows
63 notes to the accounts
104 parent company accounts
106 segmental analysis
108 five year summary
109 shareholder information
meeting demand with growth
we continue to grow in response to the 
fundamental changes affecting how people 
and organisations work namely the shift 
towards a more ﬂ exible mode of working 
especially among corporations
creating sustainable value
our purpose is to provide businesses 
with a network of high quality workplaces 
that help them be more effective and 
successful to achieve this we have 
developed a proven robust and high 
performing business model
continuing to innovate
today regus is focused on providing 
an ever expanding range of high quality 
products services and locations from 
which businesses can work to help 
our customers improve their productivity 
and efﬁ ciency  2 regus plc annual report and accounts 2013
business overview
a highperformance 
growth business
1929
locations including
1831 business centres 
and 98 third place locations
684
cities
100
 countries
158m
customers
regus is a long established high
performing business operating in the 
growing market of ﬂ exible workplace 
outsourcing
our national workplace networks provide our customers with the 
best quality locations they need to do business
organisations outsource their workplace needs to regus so 
they can better focus on their core business activities we put 
our customers in control of how and where they work allowing 
them to be more productive and efﬁ cient whilst only paying for 
what they need
in achieving this we have built a wellrespected highgrowth and 
proﬁ table business strategic report governance financial statements
  wwwreguscominvestors 3
our performance
at a glance
key highlights
• group revenue increased 233 to 
£15335m
• record network growth of 30 to 1831 
business centre locations in addition to 
98 third place locations
• firm control over costs – total overheads 
excluding research  development 
down 38 per available workstation
• mature operating proﬁ ts up 33 
to £2053m and mature eps up 34 
to 170p
• mature free cash ﬂ ow per share 
of 166p
• 13 increase in full year dividend 
to 36p
0
400
800
1200
1600
2000
13 12 11 10 09
mature new
1831
number of centres split 
mature and new
128
855
164
920
255
948
382
1029
687
1144
0
40
80
120
160
13 12 11 10 09
£1565m
mature free cash ﬂow
551
703
117  1
1443
1565
0
50
100
150
200
250
13 12 11 10 09
£2053m
mature operating proﬁt
966
637
1068
1705
2053
0
3
6
9
12
15
18
13 12 11 10 09
17 0p
mature earnings per share
81
54
86
140
17 0
0
5
10
15
20
25
13 12 11 10 09
167
mature operating margin
102
65
103
152
167
0
70
140
210
280
350
13 12 11 10 09
£3011m
investment in growth
182
714
864
1753
3011
  these ﬁ gures are prepared on a consistent basis ie the mature centre business results for 2013 reﬂ ect only the performance of centres that were open on or before 31 
december 2011 2012 mature centres are those that were open on or before 31 december 2010 4 regus plc annual report and accounts 2013
we continue to grow 
in response to the 
fundamental c c c ch h h ha a a an nges 
affecting how w w w p p p pe e eo ople 
and organisa at t t ti i i io o o on n n ns work k k k   
namely the e s sh h h hi i i if f f ft t t t t toward d ds s s s 
a more ﬂ exib b b bl l le e e e  m m m mode o o of f 
working esp p pe e e ec c c ci i ia a ally amo on ng g g g 
large bu usines s ss s s se e e es s s 
the principle drivers of this growth in 
ﬂ exible workplace outsourcing and 
ﬂ exible working in general are technology 
which enab bles us to work anywhere and 
the signiﬁ cant cost savings associated 
with contrac a ting to a specialist sup pport 
service prov ovider like regus as outlined 
in more de detail opposite other drivers 
include demographics sustainability 
and the growing societal importance 
of of w wor o k klife b bal alan ance ce 
as a result ﬂ ﬂe exible wo working has co ome m 
to to b be viewed d as a core re element o of f th the 
way organisations op oper erat ate and co ond ndu uct 
busine ess ou our bu usi s ne e n ss ss m m model h has 
evol o ved to to reﬂ ect ct t the e c cha hanging g wo w rk 
ne need ds of b busines esse ses an n and d indi divi vidu duals alike 
we we e exp x ect en e d d us user d dem eman and d for our 
se serv rvic ces e to gr row ow a as te ech chno nolo ogy continues 
to o imp mpro r ve and d b bus u in ines esse es s lo look for further 
ef fﬁ ﬁ ci c en enci c es in n th hei eir co ost s b bas ase e we are 
id dea eall lly y pl placed d t to  help t them achieve this 
when a business looks to outsource its 
workplace requirements location is
typically the primary consideration it is 
for this reason that we continue to invest 
heavily in expanding and strengthening 
national networks across all the markets 
in which we operate taking the products 
and services we provide to where our 
customers need us to be expansion in 
our core business centre network and into 
third place locations such as airports retail 
outlets and community centres is a key 
objective for the group financial growth 
also allows us to realise signiﬁ cant scale 
beneﬁ ts through cost reductions and 
gains in efﬁ ciency 
our aim is to provide our customers 
with the best possible help and support 
in deciding how and where they structure 
themselves to work expanding and 
strengthening our national networks allows
us to better serve o our u c cus usto t mers and 
attract new customers a a and n n in so doing 
to create a strong and vibrant business 
wh w ic c ch ge gene era rate tes s s longt term value fo or r al a l 
ou our r st stak keh e ol olde d rs r 
market and key 
growth drivers strategic report governance financial statements
growth drivers
growth in size 
of regus network
2007 2008 2009 2010 2011 2012 2013
918 978 983 1084 1203 1411 1831
cost
using traditional ﬁ xed 
property can be expensive 
– all the more so since 
more ﬂ exible working 
leaves desks empty for 
much of the week flexible 
workplace outsourcing can 
be more cost effective than 
ﬁ xed alternatives
technology
technological advances 
from new devices to 
technologies and services 
allow us to work and 
connect to colleagues 
customers and suppliers 
from anywhere 
technological change will 
only continue to make us 
more mobile connected 
and accessible
demographics 
there are now four 
generations in the 
workforce from the over 
65’s and baby boomers to 
genx and lastly netgens 
born into an alwayson 
alwaysconnected world 
each has very different 
work styles and 
expectations which ﬂ exible 
working helps them meet
sustainability 
sustainability is a core 
strategic priority for 
businesses governments 
and individuals and 
includes concerns around 
environmental impact for 
example through carbon 
emissions flexible working 
helps address this is an 
efﬁ cient and simply way 
by allowing our customers 
to cut the carbon 
emissions associated 
with commuting
worklife balance 
a harmonious worklife 
balance often tops 
professionals’ deﬁ nition of 
career success ahead of 
both money and 
recognition flexible 
working is a major 
contributor to a better 
worklife balance and is 
increasingly used by 
employers to attract and 
retain staff
2015 2014 2013 2012 2011 2010 2009 2008 2007
source idc worldwide mobile worker population forecasts – 20092013  20112015 june 2010 and jan 2012
number of ﬂexible workers m
801
919
946
1001
1059
1 121
1 186
1250
1334
  wwwreguscominvestors 5 6 regus plc annual report and accounts 2013
our purpose is to provide 
businesses with a network 
of high quality workplaces 
that help them be more 
effective and successful 
to achieve this we have 
developed a proven 
robust and high performing 
business model
over nearly 25 years we have continually 
invested in improving and developing our 
business assets the most important of 
which is our network of locations we now 
operate in 100 countries across almost 
2000 locations business centres and third 
place locations an unrivalled proposition
as the illustration opposite demonstrates 
our business model is aligned with 
realising our strategy and creating 
longterm value for both our 
shareholders and other stakeholders 
network strength
regus invests in strengthening and 
expanding its national networks so as to 
best serve the needs and demands of 
its customers both current and new 
expanding in this way enables regus to 
interact with an increasing number and 
variety of customers across all industry 
segments and geographical locations 
regus is in a ﬁ nancially strong position – in 
particular the strong cash ﬂ ow generation 
from our mature centres allows us to 
continue to invest in the business growing 
the network and investing in research  
development this allows us to improve 
and develop our business to meet 
changing customer needs 
good people systems and processes
developing our people processes and 
systems is core to delivering excellent 
customer service successful delivery of 
our strategy by our people has driven 
strong revenue growth all countries have 
detailed development plans and incountry 
management structures support this on 
the ground by investing in our people to 
develop their capabilities particularly at 
a country level and devolving decision 
making we are witnessing a marked 
operational improvement which is reﬂ ected 
in our strong business performance 
cash generative
an attractive feature of our business model 
is the strong conversion of proﬁ t into cash 
this supports continued investment in 
expanding our core expertise delivered 
through multiple national business centre 
networks whilst delivering tangible cash 
returns to our shareholders through the 
group’s progressive dividend policy
constantly innovating
to better serve our customers we invest 
signiﬁ cantly in developing our products 
and services we also champion a better 
understanding of the beneﬁ ts of workplace 
outsourcing through substantial marketing 
investment the ofﬁ ce remains the primary 
workspace and our business centres 
continue to be at the core of our network 
however ﬂ exible working now embraces 
an expanding range of convenient places 
to work between the ofﬁ ce and the home 
we are developing our network through 
both business centre and third place 
locations to directly meet this need
helping our 
customers work
our business model strategic report governance financial statements
1 assets 
network
global network of 
1831 business 
centre locations
innovation
98 third place 
locations – strong 
investment in 
research  
development
people
recruitment and 
ongoing training 
of highquality 
individuals
brand
a well known 
well respected 
global brand
2 customers 
•  158 million customers – a 17 
increase corporate customers include
how we 
create value
  wwwreguscominvestors 7
4 cash ﬂ ow
•  full year dividend increased 13 to 
36p 2012 32p
0
40
80
120
160
13 12 11 10 09
£1565m
mature free cash ﬂow
551
703
117  1
1443
1565
5  reinvestment in
the business 
•  448 new business centres
•  76 third place locations
0
70
140
210
280
350
13 12 11 10 09
£3011m
investment in growth
182
714
864
1753
3011
3 revenue and proﬁ t
•  group revenue growth of 233 
mature likeforlike revenue growth 
of 37
0
5
10
15
20
25
13 12 11 10 09
167
mature operating margin
102
65
103
152
167
  these ﬁ gures are prepared on a consistent basis ie the mature centre business results for 2013 reﬂ ect only the performance of centres that were open on or before 31 
december 2011 2012 mature centres are those that were open on or before 31 december 2010 8 regus plc annual report and accounts 2013
companies outsource their 
workplace needs to regus 
so that they can focus on 
their core activities the 
more convenient our 
locations become the more 
attractive our offer is as an 
alternative to owning or 
leasing property directly 
especially for larger 
businesses that cover 
diverse geographies 
we provide this convenience by 
establishing and then deepening national 
networks that are linked together into one 
global network of 1831 business centre 
and 98 third place locations across 100 
countries the reach of our network is 
unrivalled and a major differentiator
for our customers – from global 
corporates such as google tata and 
toshiba to numerous businesses small 
and large – our network is critical to their 
success they use it to work more 
efﬁ ciently and effectively reduce ﬁ xed 
costs and meet a growing employee 
demand for more ﬂ exible work 
arra r ng ngem emen e ts ts th t ey y also us u e it to explore
new w and existi ting ng m mar rke kets ts part rtnering 
wi w th regus a all llow ows s ou ur custom mer ers s to to o 
expa p nd witho h ut t the he e ﬁ nancial ris isk and d
admi m nist s ra ative ve a and d m man a ag ager e ial costs s
associ ciat a ed w wit th h growth
new countries and cities
the scope and strength of our network 
is a key differentiator for regus – we
therefore continuously invest in developing
and strengthening it further in 2013 we
opened in our 100th country – nepal – and 
extend our reach to 684 cities including 
new markets such as beverly hills usa 
naples italy and pretoria south africa 
network growth strengthens our
relationships with customers and 
attracts new business it also drives up 
shareholder returns the more centres
we have the more we beneﬁ t from
economies of scale and lower unit costs
building national networks
launching in new markets is one key 
aspect of network growth but deepening 
our presence in existing ones is also
critical thus in china we increased our
network to 66 locations in 2013 in key 
business districts of upandcoming cities 
such as ningbo and suzhou as well 
as the longstanding business hubs of 
shanghai and beijing in germany we
more than doubled the size of our 
business centre network whilst also 
opening many third place locations
extending our reach further
expanding into new locations is an 
important part of our strategy we aim 
to be everywhere our customers need 
us to be regus now caters to mobile 
workers peopl le e who work r whi ilst on the 
mo move duri ing n 2 201 013 3 re egu gus s ad adde ded d 76 76 new 
th thir rd d pl plac ace e lo oca c ti tion ons s – wa walk ki in n ur urba b n and d
suburban an w wor orkp kplaces s these n new ew fac a ilities
ar ar a e pr rim imarily located ar rou ound nd t tra rans n port 
in infr f fras as astr t uc uctu u u ure r r hubs such h h h a as s s s airp ports
mo otorw way a service station on ons an a d railwa ay
stations but inc ncreasingly al also so in su such ch 
locations as commu m nity cen ntr t es es  li libr rar arie ies s 
an and d re retail o out u lets s
8 regus plc annual report and accounts 2013
a unique 
network strategic report governance financial statements
key network highlights
3 new countries
opened in kathmandu 
nepal in june 2013
100th
country milestone achieved
1 network growth
30 increase in the size 
of regus network
448
business centres added
5  expanding 
national networks
our network in germany 
more than doubled in 2013
81
business centres now open 
in 21 cities
6 growing 
markets
china is one of our fastest 
growing national networks
66
locations in 19 cities in china
4  customer 
growth
strong end user demand in 
all markets
158m
individuals now supported 
by regus
2 third place
third place now open in 
ﬁ ve countries
76
locations opened in 2013
  wwwreguscominvestors 9  wwwreguscominvestors 9 today regus provides
a range of high quality 
products and services to 
help our customers improve
their productivity and 
performance 
outsourcing their workplace needs to 
regus allows our customers to focus 
more clearly on their core business 
activities and be more successful 
the scale of the opportunity is signiﬁ cant 
our network will remain at the core of 
our business but we will use it to create 
a workplace ecosystem around which we 
provide facilitate and deliver a wide range 
of work related activities and services
we believe our ability to innovate is crucial
to the longterm growth and success of 
our business in 2013 we increased our 
investment in research  development 
by 60 to £72m 2012 £45m
as the examples opposite describe we 
have already made the initial steps in 
broadening what we do exploring and 
testing various offers in different markets 
some further in the future than others 
we are conﬁ dent that investing in 
such development will increase the 
attractiveness of our offer to a wider 
range of businesses this will improve 
customer satisfaction and provide 
additional opportunities to enhance
longterm shareholder value
developing 
new products 
and services
10 regus plc annual report and accounts 2013
docstation our cloud printing platform business island concept including business workbox strategic report governance financial statements
cloud printing 
platform
our solution docstation enables 
customers to send documents to 
print from anywhere in the world 
and collect them when they visit 
their next regus location
business workbox
a fully selfcontained resourced 
and private workspace with a 
footprint of four square metres 
ideal for locations with a high 
footfall such as airports and 
service stations
cloud voice platform
internet enabled it and telephony 
services seamlessly connecting 
our network to provide an 
enhanced technology platform 
for our customers
customer focused innovation
global single signon
once registered with regus’ global 
wifi service a customer’s device 
instantly logs back on whenever 
a regus location is visited
workplace in your 
phone apps
a suite of apps which enable all 
regus’ products and services to 
be easily accessed and booked in 
real time anywhere in the world
driverless ofﬁ cecar
we have partnered with a concept 
car development company 
rinspeed to create a driverless 
car that can be transformed into 
a fourperson mobile workspace
  wwwreguscominvestors 11 12 regus plc annual report and accounts 2013
strategy and key performance indicators
strategic objectives our approach
improve proﬁ tability
revenue growth achieved through the 
addition of new locations the development 
of incremental revenue streams and active 
management of the existing network to drive 
efﬁ ciency all contribute to improvements in 
gross proﬁ t combined with strong overhead 
cost control this drives operating proﬁ t and 
cash ﬂ ow
develop national 
networks
growth is demandled as we respond to 
companies looking to outsource more of their 
workplace needs by expanding our networks 
we expand our addressable audience and 
provide our existing customers with additional 
convenience we continue to be mindful of 
growing only in locations where the investment 
opportunity meets our stringent returns criteria 
we are also focused on developing more capital 
efﬁ cient ways of expanding the network
lead market 
innovation
innovation is core to regus’ strategy and 
allows us to retain our marketleading position 
we invest in research  development to ensure 
we stay on top of and even help shape trends 
by developing products and services that meet 
our customer’s needs and help them work 
more efﬁ ciently and effectively new product 
development provides existing customers with 
additional reasons to use regus and also opens 
up new revenue opportunities
control cost
cost control is achieved through operational 
excellence and the signiﬁ cant economies of 
scale and operational leverage that network 
growth brings
our strategic 
approach strategic report governance financial statements
  wwwreguscominvestors 13
key performance indicators how we did in 2013 future ambitions
mature eps 
mature eps grew 34 to 17p on 
a likeforlike basis
0
3
6
9
12
15
18
13 12 11 10 09
81
54
86
140
17 0
  these ﬁ gures are prepared on a consistent basis ie the 
mature centre business results for 2013 reﬂ ect only the 
performance of centres that were open on or before 
31 december 2011 2012 mature centres are those 
that were open on or before 31 december 2010
delivering proﬁ table growth is central to creating 
future shareholder value regus is committed to 
improving the performance of the mature centres 
business to add to its overall performance and 
thus increase mature eps 
network location growth
448 new centres added to 
the network and 76 third 
place locations
0
400
800
1200
1600
2000
13 12 11 10 09
983
1084
1203
1411
1831
 business centre locations
we aim to add at least 300 new business 
centre locations in 2014 and will continue to 
add breadth and convenience to the network 
through signiﬁ cant third place location growth
investment in research  
development
£72m invested in research  
development up 60
0
2
4
6
8
10
13 12 11 10 09
19
26
31
45
72
we anticipate increasing our investment in 
research  development thus providing a 
key point of differentiation in the market for 
regus by continuing to meet our customers’ 
emerging needs
total overheads excluding 
rd per available 
workstation
overheads excluding rd 
per available workstation 
reduced by 38
0
200
400
600
800
1000
1200
13 12 11 10 09
1012
1130
1200
1105
1063
we will continue to decrease overheads per 
available workstation through scale beneﬁ ts 
and through driving more efﬁ ciencies from our 
incountry management structure
read about how our principal risks may impact our performance on page 24 14 regus plc annual report and accounts 2013
chairman’s statement
for the period group revenues grew 
233 to £15335m 2012 £12441m 
while operating proﬁ ts were marginally 
ahead at £908m 2012 £902m a 
strong result in light of the increased 
drag from the accelerated pace of new 
centre additions 
we continue to position the business for 
the future with over £300m invested in 
growing our high quality network in total 
we increased our business centre network 
by 30 to 1831 2012 1411 and 
opened 76 third place locations 
the performance of our mature business 
continues to be a strength on a like
forlike basis revenues in our mature 
business improved by 37 to £12263m 
2012 £11820m while operating 
proﬁ t increased by 33 to £2053m 
2012 £1546m with the mature operating 
margin improving to 167 2012 131 
our mature centres continue to be highly 
cash generative with free cash ﬂ ow after 
tax ﬁ nance costs and maintenance capital 
expenditure of £1565m representing a 
mature free cash ﬂ ow margin of 128 or 
166p per share
our new centres business has also 
performed well progressing in line with 
our expectations management remain 
focused on ensuring all new centres 
achieve the required ﬁ nancial returns 
strategy
over the last 25 years regus has evolved 
to meet the changing work needs of 
business providing our customers with 
superior space and support regardless of 
when where or how they work we believe 
that now is the right time to expand and 
lay the foundations for a much larger and 
more proﬁ table business 
our growth strategy is based upon 
increasing the proﬁ t generation and cash 
ﬂ ows from our mature centres which 
enables us to invest in our network and 
thereby generate attractive returns and 
increased earnings per share over the 
long term 
while pursuing our strategy we also strive 
to be good corporate citizens we are 
committed to sustainable business 
practices and dedicated to promoting and 
enabling the shift to ﬂ exible working in the 
economy by doing so we strengthen our 
business and help our customers improve 
their productivity while reducing both 
costs and carbon emissions through 
more effective use of space and reducing 
the need for travel we are also committed 
to reducing our own impact on the 
environment implementing systems and 
processes to ensure we use resources in 
a suitable and responsible way we also 
actively back our team members’ initiatives 
to support the local communities in which 
we operate
board update 
during the year florence pierre joined 
the board as a nonexecutive director 
complementing its existing skills and 
diversity following an external evaluation 
in 2012 an internal board review was 
conducted in 2013 the results of this 
evaluation were used to improve the 
processes and effectiveness of the board 
no reportable matters were identiﬁ ed and 
we continue to have full conﬁ dence in the 
board’s members and processes 
our people
each of the nonexecutive directors was 
able to attend a portion of the group’s 
annual planning conference in november 
in which more than 150 senior managers 
from around the world actively participated 
it was clear from observation of the 
participants’ plans that management’s 
focus on the people in these key roles 
is paying off in terms of our ability to 
innovate and deliver results as we execute 
our strategy
i would like to thank each and every one 
of our team members for their unrelenting 
passion and commitment building regus 
is a challenging and rewarding endeavour 
which is only achieved through their hard 
work and dedication
dividend
given the continued strong performance of 
the business the board is recommending 
a ﬁ nal dividend of 25p subject to the 
approval of shareholders at the 2013 
agm this will be paid on 30 may 2014 to 
shareholders on the register at the close of 
business on 2 may 2014 this represents 
an increase in the full year dividend of 13 
to 36p 2012 32p
douglas sutherland
chairman
4 march 2014
chairman’s statement
douglas sutherland chairman
the group had an active and successful year we have 
again demonstrated our ability to deliver a strong ﬁ nancial 
performance while expanding our global network and 
deepening our local incountry networks strategic report governance financial statements
  wwwreguscominvestors 15
chief executive ofﬁ cer’s review
chief executive officer’s review
mark dixon chief executive officer
following a record year of growth we 
have ﬁ rmly established ourselves with an 
unrivalled global network at the same 
time we also strengthened our presence at 
both a local and national level across the 
100 countries in which we now operate 
as we embed our business more deeply 
into local communities we take seriously 
our commitment to support them the 
endeavours of our team members with 
the backing of the business have helped 
thousands of individuals around the world 
and i thank them for their efforts 
group revenues increased by 233 to 
£15335m 2012 £12441m reﬂ ecting 
the signiﬁ cant expansion of our network 
in total £3011m was invested in growth 
2012 £1784m the result of which 
was a 30 increase in business centre 
locations to 1831 2012 1411 at the 
same time operating proﬁ t was marginally 
up at £908m 2012 £902m given the 
scale pace and costs of growth this is a 
strong result
our mature business remains the 
proﬁ t and cash engine of the group 
operating proﬁ ts rose by 33 to £2053m 
in part due to further improvements to 
yield management with free cash ﬂ ow 
after tax ﬁ nance costs and maintenance 
capital expenditure at £1565m 166p 
per share on the back of revenues up 
37 to £12263m mature eps also 
increased by 34 to 170p 2012 127p
costs remain ﬁ rmly under control 
notwithstanding the signiﬁ cant investment 
required to support growth improved 
efﬁ ciency and scale continued to deliver 
beneﬁ ts with overheads excluding 
research  development on a per
availableworkstation basis down by 38
we have been able to deliver this 
performance in large part due to the 
fundamental improvements to our country 
management structure these results 
clearly reﬂ ect the quality of our team 
and their skill in making the right often 
tough decisions to drive performance 
in what remained a challenging 
macro environment
we continue to respond to the 
fundamental changes affecting how we 
all work namely the shift from a ﬁ xed to 
a ﬂ exible mode of working our fortunes 
are inextricably linked to progress and 
developments in this highgrowth market 
among the core drivers of growth for 
regus are the signiﬁ cant cost savings 
associated with moving to more ﬂ exible 
workplace arrangement and outsourcing 
this to specialist providers such as regus 
as well as continued technological 
advances which allow us to work 
from anywhere other drivers include 
demographic changes sustainability 
and the growing societal importance of 
worklife balance as a result ﬂ exible 
working has come to be viewed as a 
core element of the way organisations 
operate and conduct business
group income statement
£m 2013 2012 change
revenue 15335 12441 233
gross proﬁ t 
centre 
contribution 3738 3207 17
gross margin 244 258
operating 
proﬁ t 908 902 1
operating 
margin 59 73
proﬁ t 
before tax 815 851 4
taxation 146 142
proﬁ t for 
the period 669 709 6
ebitda 1883 1593 18
ebitda margin 123 128
our business model has continually 
evolved to reﬂ ect the changing work 
needs of business and individuals 
our overarching aim has always been to 
provide our customers with the best 
possible help and support in deciding 
where and how they work in doing so we 
have created a strong and vibrant business 
which generates signiﬁ cant longterm 
shareholder returns
i will now review the performance of 
our business 
it has been another year of signiﬁ cant achievement for 
regus these strong results underline the fundamental 
strengths of our business and its forward momentum in 
a growing market 16 regus plc annual report and accounts 2013
performance against our strategic 
objectives
improve profi tability
the performance of our core mature 
centres business centres opened on or 
before 31 december 2011 underpins 
all growth activity within the group 
we remain pleased with the levels of 
occupancy averaging 838 through the 
year and the improvement of revpow 
to £7750 an increase of 43 up £321 
a sign of robust yield management 
this healthy occupancy and increased 
revpow drove incremental revenue 
growth which with operational gearing 
is then reﬂ ected in the improvement in 
mature gross proﬁ t margin to 293 
2012 278
the 2011 new centres which joined the 
mature estate in 2013 signiﬁ cantly closed 
the gap with the existing mature estate 
and are now performing at a similar 
gross proﬁ t before depreciation and 
amortisation margin 
our new centres business centres 
opened on or after 1 january 2012 has 
equally performed well and in line with 
expectations our primary objective is to 
ensure that all new centres perform in line 
with the rest of the mature estate as soon 
as possible
• the ﬁ nancial maturity proﬁ le of our 2012 
centres is in line with expectations 
these generated £1394m of revenue 
and made a positive centre contribution 
of £69m this translated into a gross 
proﬁ t margin before depreciation and 
amortisation of 151
• the 448 centres that we added during 
2013 generated revenues of £1594m 
and made a centre contribution of 
£73m in line with our expectations 
within this the acquisition of mwb has 
contributed strongly at the gross 
proﬁ t level
• the heavy overhead investment required 
to open and support these new centres 
resulted in a drag of £1140m on the 
group’s operating proﬁ t 2012 £626m 
develop national networks
this has been a record period of growth 
for regus we have opened more than 
500 locations – 448 business centres and 
76 third place in doing so we expanded 
our reach and enhanced our longterm 
earnings potential
it is a testament to the fundamental 
strength of our business model the 
robustness of our systems and processes 
and the skill and determination of our 
teams around the world that we have been 
able to execute this part of our strategy 
whilst also maintaining our daytoday 
operational performance at such a 
consistently high level
when a business looks to outsource its 
workplace requirements location is 
typically the primary consideration it is 
for this reason that we are investing in 
local and national networks taking the 
products and services we provide closer 
to where business needs us to be 
growth therefore both in our core 
business centre network and into third 
place locations such as airports retail 
outlets and community centres is a key 
objective for the group 
this year we expect to add at least 300 
new business centres and many new 
third place locations we continue to ﬁ nd 
plenty of opportunities both organic 
and through acquisition to grow our 
network on terms that meet our stringent 
investment criteria and which are capable 
of delivering longterm sustainable returns 
the integration of mwb into our uk 
business achieving all identiﬁ ed synergies 
provides a clear demonstration of 
our ability to deliver value through 
incremental acquisitions
as we grew we also continued to improve 
the composition of our business with 84 
of leases now either ﬂ exible or variable 
2012 82
our growing network is attractive to the 
increasing numbers of businesses looking 
to outsource their workplace needs and 
adopt more ﬂ exible working practices in 
general as a consequence end user 
demand for regus products and services 
remains strong over the course of 2013 
customer numbers increased by more than 
200000 to 158m 
chief executive ofﬁ cer’s review
continued strategic report governance financial statements
  wwwreguscominvestors 17
attracting more large corporate customers 
to our business remains a key priority 
we believe our network scale and reach is 
an important and crucial differentiator as 
these organisations seek to rationalise their 
smallofﬁ ce networks move towards more 
ﬂ exible work arrangements and reduce 
ﬁ xed costs notable new wins and contract 
extensions amongst many include twitter 
whom we helped open in 12 new countries 
over the year toshiba supporting 1000 
of their retail pointofsales team across 
14 countries and electronic arts 
supporting them in markets such as china 
and russia as well as opening in new ones 
across europe and asia we also extended 
our relationships with apple accenture 
edf energy and rbs amongst others
industry leading innovation
the quality and breadth of regus locations 
and associated products and services 
are core to our differentiation and are 
why customers choose to work with us 
we recognise that innovation is at the core 
of maintaining our marketleading position 
– we invest in research  development 
to ensure we stay ahead of the curve 
and continue to develop the locations 
products and services that attract 
customers to regus over the period 
we invested £72m in research  
development 2012 £45m this ensures 
we are best placed to anticipate and 
respond to the needs of our customers 
it also helps us deﬁ ne the workplace 
sector thereby enhancing our leadership 
position
during 2013 we continued development in 
a number of important areas not least with 
regards to the it and telephony services 
we provide to customers one of the core 
attractions of regus to mobile workers 
is the way that we can improve their 
productivity while they are on the move 
our cloud printing solution docstation has 
proved popular and continues to be rolled 
out globally we also concluded market 
testing of the workbox concept this is 
a selfcontained fully resourced private 
workspace with a footprint of four square 
metres ideal for locations with high 
transient footfall such as airports and 
service stations we intend to begin 
deployment in 2014
third place continues to make encouraging 
progress and is a fundamental part of our 
growth strategy over the last year we 
extended our relationship with shell and 
signed agreements to add additional 
locations to the uk motorway network 
since yearend we signed our ﬁ rst deal 
outside europe with the singapore 
government for the placing of facilities 
in public libraries we have also signed 
agreements to open dropin business 
lounges at heathrow and gatwick airports 
given the scale of the market opportunity 
we are encouraged by both end user 
adoption and interest from potential new 
partners this is driving rapid growth 
however in the context of our signiﬁ cant 
business centre operation it remains small 
at this stage
cost control
one of the fundamental strengths of 
our business is its ability to grow and 
leverage the beneﬁ ts of additional scale 
despite signiﬁ cant investment in growth 
total overheads excluding investment in 
research  development as a percentage 
of revenue reduced marginally to 180 
against an increase in the network of 30 
total overheads excluding investment 
in research  development and mwb 
related transaction and restructuring costs 
increased by 190 in addition to the 
scale beneﬁ ts mentioned earlier two 
other factors are driving this improvement 
namely the delayering and strengthening 
of management and automation of our 
backofﬁ ce processes the standardisation 
of repeatable tasks in our back ofﬁ ce 
allows us to concentrate activities within 
our single service centre in manila and 
harmonise service levels bringing 
signiﬁ cant productivity gains and freeing up 
centre teams for highervalueadd tasks
a high performing team
no commentary on our business 
performance would be complete without 
reference to our dedicated workforce 
without whose efforts we could not have 
achieved the progress we have made 
so far our ability to deliver at the local 
level becomes ever more dependent 
on the strength of our local incountry 
management teams in many respects 
this performance is a direct result of the 
management and structural improvements 
we have made at both a group and a 
country level and the devolution of 
daytoday operational decision making 
this process continues and we are 
making signiﬁ cant hires within all country 
management teams as we expand
as a servicebased business the strength 
and capabilities of our increasingly 
geographically diverse team are critical to 
achieving our objectives we recognise the 
importance of people development and the 
regus online learning academy together 
with a wide range of additional initiatives 
gives our team members the opportunity 
to learn and enhance the skills that will 
ensure they are capable of achieving their 
career ambitions we are committed to a 
fair approach and equal opportunities in all 
areas of our business
culturally we employ more than 100 
nationalities and with regard to gender we 
aim to achieve broadly equal outcomes for 
women and men for the group as 
a whole our workforce is 70 female 
30 male at a group operational level 
the breakdown is broadly equal and at a 
senior management level 30 of positions 
are held by women we successfully 
recruit train promote and retain skilled 
and motivated team members with very 
diverse backgrounds this is a core 
strength and critical to the successful 
development of our business
operational review
over the year the group added 448 new 
centres 2012 243 with the total number 
as of 31 december 2013 standing at 1831 
2012 1411 this growth resulted in an 
increase in total workstation capacity 
including nonconsolidated workstations 
of 269 to 304774 and the number 
of consolidated workstations as at 31 
december 2013 by 275 to 292655
to review our business more meaningfully 
we will concentrate on our mature 
business performance development 
which represents likeforlike business
mature centres performance
£m revenue contribution mature margin 
2013 2012 2013 2012 2013 2012
americas 5340 5096 1689 1534 316 301
emea 2983 2835 825 783 277 276
asia paciﬁ c 1816 1847 587 577 323 312
uk 2107 2029 503 376 239 185
other 17 13 14 13 – –
total 12263 11820 3590 3283 293 278 18 regus plc annual report and accounts 2013
americas
this business posted another good 
performance mature revenues were up 
42 at constant currency to £5340m 
up 48 at actual rates with average 
mature occupancy of 855 during the 
period 2012 872 mature gross 
margins improved to 316 2012 
301 during the year we added 
196 centres this increased our network 
to 875 business centre locations and 
took us into 83 new cities and markets 
including beverly hills california 
st pauls minnesota and langley 
canada this growth contributed to a 
27 increase in the average number 
of consolidated workstations from 
90617 in 2012 to 114984 in 2013
emea
this geographically diverse business 
also delivered a strong performance in 
spite of challenges in some markets 
mature revenues were up 22 at constant 
currency to £2983m up 52 at actual 
rates and achieved an average mature 
occupancy of 814 2012 809 
mature gross margin remained stable at 
277 2012 276 during the year 
we added 126 centres increasing our 
network to 450 business centre locations 
and opening in 23 new cities including 
pretoria south africa naples italy and 
dortmund germany this contributed to 
a 13 increase in the average number of 
consolidated workstations from 41531 in 
2012 to 46973 in 2013
asia pacifi c
our apac business continued its robust 
performance delivering mature revenues of 
£1816m up 32 on constant currency 
down 17 at actual rates and achieved 
an average mature occupancy of 835 
2012 833 mature gross margins 
improved to 323 2012 312 
during the year we added 58 new centre 
openings increasing the network to 290 
business centre locations and opening in 
ten new cities including ningbo china 
penang malaysia and kathmandu nepal 
our 100th country this contributed to a 
37 increase in the average number of 
consolidated workstations from 34557 in 
2012 to 47188 in 2013 
uk
our uk business made further strong 
progress delivering mature revenues of 
£2107m up 38 on 2012 mature gross 
margins improved to 239 2012 185 
and average mature occupancy remained 
healthy at 828 2012 831 including 
the acquisition of mwb 68 new business 
centre locations were added increasing 
the network to 216 this resulted in a 
34 increase in the average number of 
consolidated workstations from 37754 in 
2012 to 50630 in 2013 it is important to 
note that the integration of mwb went as 
planned and we remain on track to achieve 
the identiﬁ ed synergy savings
outlook
our business is in a strong position we 
are well positioned to continue to grow our 
networks customer base and earnings 
in 2014
strengthening and expanding our network 
is core to ensuring we continue to generate 
incremental returns over the medium term 
at this early point in the year it is difﬁ cult to 
predict precisely how many locations we 
will add but we expect to grow by at least 
300 new business centres during 2014 as 
well as add more third place locations
growth when coupled with increased 
investment in innovation will create 
additional demand for regus’ products 
and services especially from large 
corporates as they seek help in 
transitioning from ﬁ xed to ﬂ exible working 
the overriding focus therefore remains on 
ﬁ nding opportunities that meet our strict 
ﬁ nancial returns criteria and are consistent 
with our strategic objectives
current trading is good although the 
strengthening of sterling in recent months 
will affect the translation of our results 
notwithstanding this we remain conﬁ dent 
in our business model and our prospects 
for the year ahead
mark dixon
chief executive ofﬁ cer
4 march 2014
chief executive ofﬁ cer’s review
continued strategic report governance financial statements
  wwwreguscominvestors 19
chief financial ofﬁ cer’s review
chief financial officer’s review
dominique yates chief financial officer
we have added 448 new centres slightly 
ahead of revised guidance in october 
and delivered full year results in line with 
management expectations it is also 
important to highlight that this was 
achieved as sterling strengthened 
signiﬁ cantly in the ﬁ nal quarter it is 
testament to the strength of our core 
mature business that while we grew the 
network by 30 and incurred £74m 
of transaction and restructuring costs 
related to the acquisition of mwb 
business exchange and carried signiﬁ cant 
incremental overhead in mwb in the ﬁ rst 
half of the year we nevertheless marginally 
increased group statutory operating proﬁ t 
to £908m 2012 £902m
to fully appreciate the underlying 
performance of the group it is important 
to look at the mature and new businesses 
separately we have consistently 
highlighted mature proﬁ tability as being 
more representative of the performance 
of the business – mature likeforlike 
operating proﬁ t increased 33 to £2053m 
2012 £1546m
a record investment of £3011m in growing 
our business moved us from a net cash 
position of £120m at 31 december 2012 
to a net debt position of £572m at 
31 december 2013 this was a more 
favourable closing position than we 
originally anticipated due mainly to timing 
differences particularly in relation to growth 
capital expenditure payments we continue 
to monitor the appropriate level of ﬁ nancial 
capacity to grow our business and support 
our strategy whilst ensuring we maintain a 
prudent capital structure 
in recognition of the group’s continued 
ﬁ nancial and operational progress the 
board declared a 14 increase in the 
ﬁ nal dividend from 22p to 25p this 
represents a 13 increase in the total 
dividend to 36p 2012 32p
improving performance of our mature 
centres business centres opened on 
or before 31 december 2011 
at the end of december 2013 we had 
1144 centres in the mature business 
reﬂ ecting the recent scale of our new 
opening programme the mature network 
represented approximately 62 of our 
global portfolio at the end of 2013 
we remain clearly focused on enhancing 
the proﬁ t performance of our mature 
centres business at centre level gross 
proﬁ t whilst delivering further overhead 
efﬁ ciencies to generate a higher 
operating margin
we are pleased with the performance of 
our mature centres business revenue 
grew 37 on a likeforlike basis to 
£12263m and mature revpow improved 
to £7750 an increase of 43 £321 
this is a strong performance and continues 
the trend of incremental yield improvement 
experienced since the second half of 2011  
average mature occupancy for 2013 
remained strong at 838 2012 845
gross proﬁ t centre contribution 
increased to £3590m from £3283m an 
improvement of 9 accordingly the gross 
margin increased from 278 to 293 
reﬂ ecting the operational leverage beneﬁ t 
of higher revenue in part from the further 
maturation of the 2011 centre additions 
and our strong discipline over managing 
centre costs
mature centre business performance
£m 2013 2012 increase
revenue 12263 11820 37
gross proﬁ t centre contribution 3590 3283 9
gross margin 293 278
overheads inc rd 1538 1734 11
joint ventures 01 03
operating proﬁ t 2053 1546 33
operating margin 167 131
ebitda 2721 2168 26
ebitda margin 222 183
the business has made strong progress during 2013 
with signiﬁ cant investment in the network and further 
improvements in mature proﬁ t and cash generation 20 regus plc annual report and accounts 2013
overheads allocated to the mature centres 
business reduced from £1734m in the 
corresponding period to £1538m as 
the group continues to beneﬁ t from 
economies of scale reducing overhead 
costs per available workstation 
correspondingly overheads as a 
percentage of mature revenue declined 
from 147 in 2012 to 125 for 2013 
as we make further progress towards our 
target of 12 
as a result our mature operating proﬁ t 
increased 33 from £1546m to £2053m 
improving the operating margin from 
131 to 167 mature ebitda 
increased from £2168m to £2721m 
with the ebitda margin improving from 
183 to 222
the following table sets out the eps 
calculation for our mature business 
in management’s view this provides 
a more representative picture of the 
underlying operating performance of 
the business
mature eps calculation
£m 2013 2012 increase
mature 
operating proﬁ t 2053 1546 33
net ﬁ nance 
charge 52 45 16
tax 400 300
mature proﬁ t 
after tax 1601 1201 33
mature eps p 170 127 34
commensurate with the strong advance in 
operating proﬁ t mature eps improved by 
34 to 170p
cash generation remains an attractive 
characteristic of the mature business 
once more the conversion of mature 
proﬁ tability into cash has been strong 
thereby continuing to contribute to the 
funding of our new centre growth 
mature free cash fl ow
£m 2013 2012
ebitda 2721 2168
working capital 213 205
maintenance capital 
expenditure 532 580
other items 31 30
finance costs 52 45
tax 390 283
mature free cash ﬂ ow 1565 1495
mature free cash ﬂ ow 
per share p 166 159
free cash ﬂ ow margin 
 128 126
the mature business experienced a 
£213m working capital outﬂ ow in 2013 
which represents 16 of group gross 
working capital balances and is mainly 
due to timing differences maintenance 
capital expenditure for the year was 
£532m 2012 £580m representing 
43 of mature revenues 2012 49 
in line with our guidance of 45
the resulting 45 increase in mature 
free cash ﬂ ow to £1565m represents 
166p per share or a free cash ﬂ ow 
margin of 128
total overheads sga and rd allocation methodology 
we constantly monitor the 
appropriateness of the assumptions 
underlying our cost allocation 
methodology as the business continues 
to beneﬁ t from economies of scale 
we reviewed the original estimation 
of the cost of getting a new centre to 
the point of opening and considered it 
appropriate to reduce our estimation 
to approximately £110000 compared 
with the previous cost of £130000
accordingly we therefore applied this 
new cost to additions from 1 january 
2013 this estimate adjustment and 
the treatment of the actual overhead 
costs of mwb in the ﬁ rst half of the year 
aside the methodology by which we 
have allocated overheads by maturity 
is consistent with that used in previous 
years and continues to reﬂ ect the 
activity drivers in each part of the 
business
there are four elements to the 
allocation methodology
• it is estimated that 90 of property 
team costs are spent on supporting 
our growth programme
• as revised each new centre costs 
approximately £110000 to get to 
the stage of opening £130000 per 
centre for 2012 and earlier periods 
this reﬂ ects the cost of management 
time sales and marketing setup 
costs these costs are deducted 
before the allocation of sales and 
marketing costs as outlined below 
human resources recruitment and 
training costs and administrative and 
ﬁ nance setup costs
• for the remainder of the sales and 
marketing costs the principle is that 
the allocation is made on the basis of 
new workstation sales as the nature 
of the spend is to generate new 
enquiries and convert these into 
new sales and
• for all other overhead costs we follow 
the principle of allocating the costs 
prorata by reference to available 
workstation numbers
as we noted with our interim results 
the acquisition in february of mwb 
resulted in signiﬁ cant transaction and 
restructuring costs and it also came 
with a signiﬁ cant overhead base to 
support its 64 centres this acquisition 
therefore generated an initial cost proﬁ le 
fundamentally different to that more 
normally associated with our new centre 
opening and acquisition programme
therefore we felt it inappropriate to 
apply the overhead cost allocation 
methodology to mwb in the ﬁ rst half of 
2013 and instead reﬂ ected the actual 
reported overhead cost base of the 
business including all transaction and 
restructuringrelated expenses in new 
centre overheads
in the second half of the year we 
applied the normal allocation 
methodology as the business was fully 
absorbed into the uk business and 
supported by a single overhead cost 
base consequently these reported 
results for 2013 show the performance 
of the mwb centres within the new 
2013 centre additions on an actual cost 
basis for the ﬁ rst half and as part of the 
normal cost allocation exercise for the 
second half we believe this blended 
approach provides shareholders with 
the best representation of the underlying 
performance of both the new centre 
and mature centre businesses
chief financial ofﬁ cer’s review
continued strategic report governance financial statements
  wwwreguscominvestors 21
building the returns from our new 
centres business centres opened on 
or after 1 january 2012
in total there were 687 new centres at the 
end of 2013 overall these represented a 
material investment and with the notable 
increase in the pace of openings provide 
a signiﬁ cant drag on the group’s income 
statement this arises from the substantial 
investment in central overheads to support 
this growth and the initial negative gross 
margin while occupancy builds more 
importantly the performance of our new 
centres continues to be in line with 
management’s expectations however it is 
important to remember that the way new 
centres develop ﬁ nancially is inﬂ uenced 
by factors such as but not limited to 
geography the timing of opening and 
by deal type 
the table below illustrates the material 
impact on the income statement of these 
new additions
new centre performance
£m 2013 2012
2012 openings 1394 390
2013 openings 1594 –
revenues 2988 390
2012 openings 69 87
2013 openings 73 –
gross proﬁ t centre 
contribution 142 87
overheads 1208 539
mwb transaction 
and restructuring 
related costs 74 –
operating proﬁ t 1140 626
ebitda 837 568
the 2012 openings are progressing to 
maturity in line with management’s 
expectations with the large number of 
openings in 2012 towards the end of the 
year these centres weighed on proﬁ tability 
in the ﬁ rst half of 2013 as expected 
however they continued to ﬁ ll rapidly and 
reversed the £16m negative contribution 
in the ﬁ rst half to a positive contribution 
for the year overall of £69m achieving 
a gross proﬁ t margin before depreciation 
and amortisation of 151 for the year 
inclusion of mwb in the results for the 
2013 new centre additions following its 
acquisition at the end of february resulted 
in a positive gross proﬁ t contribution from 
this year group in 2013 overall these new 
centre additions remain on track to deliver 
the anticipated performance
the allocation of central overheads to 
support the new 2012 and 2013 centres 
together with the actual costs relating to 
the mwb centres for the six months to 
30 june 2013 increased signiﬁ cantly to 
£1282m 2012 £539m as the overall 
number of new centres increased to 
687 2012 243 and the pace of 
openings accelerated
consequently the negative contribution 
to group operating proﬁ t in 2013 from 
the new centres increased to £1140m 
2012 £626m 
developing the network through our 
new centres business 
we signiﬁ cantly expanded the network 
during 2013 adding a record 448 centres 
this level of activity is slightly ahead of the 
420440 new additions guidance we 
provided in our q3 interim management 
statement growth on such a scale means 
it is challenging to gauge precisely when 
centres will open or an acquisition will 
complete as we did in 2012 we had an 
active fourth quarter in 2013 when in total 
we added 156 centres more than the total 
number of centres opened in the whole 
of 2011 at the end of december 2013 
we had 687 net new centres comprising 
38 of the total number of centres 
on 1 january 2014 239 of the centres 
added in 2012 graduated into our 
mature centre business
we continue to have a good pipeline of 
new openings customer demand for 
more convenient and ﬂ exible workplaces 
continues to be strong and whilst 
attractive investment opportunities 
delivering above our hurdle rate of internal 
return are available we will continue to 
grow our network we expect to add 
at least 300 business centre locations 
this year this will take us through our 
previously stated target of at least 
2000 centres by 2014 which served its 
purpose in demonstrating the scale of the 
group’s growth aspirations over the last 
three years
we will complement this centre growth 
with a signiﬁ cant number of additional 
third place locations further increasing the 
convenience of our network in a capital 
efﬁ cient manner our third place business 
continues to develop and while we are 
encouraged with progress made to date 
it still remains too early to provide any 
meaningful representation of performance
every potential investment is rigorously 
evaluated by the investment committee 
and has to meet stringent ﬁ nancial 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 the integration 
of mwb into our uk business achieved 
all identiﬁ ed synergy beneﬁ ts providing a 
clear demonstration of our ability to deliver 
value through acquisitions
we set out below the signiﬁ cant cash ﬂ ow 
impact of the investment in new centres 
£m 2013 2012
ebitda 837 568
working capital 
estimated 854 259
growth capital 
expenditure 3206 1613
finance costs 41 06
tax 219 144
net investment in new 
centres 3011 1784
during 2013 the amount invested in 
growth increased materially to £3011m 
2012 £1784m adding 448 centres 
which represented a 30 increase in the 
network the new centres continue to 
have a signiﬁ cant positive impact on 
working capital
closures
during 2013 we closed relocated or 
resized 28 centres 2012 26 these 
centres contributed a modest operating 
loss of £05m against a loss of £18m 
in the corresponding period
overheads
increased rd including third place 
overheads investment
we consistently invest in areas which 
improve our competitive advantage and 
help differentiate us from other market 
participants within a highly fragmented 
but competitive landscape expenditure 
on research  development for 2013 
increased 60 to £72m 2012 £45m 
maintained discipline on selling general 
and administrative expenses sga 
2013 has been another period of 
signiﬁ cant expansion for regus and we 
have continued to invest to support our 
growing business we have done this 
whilst maintaining a resolute focus on cost 
discipline total group sga costs 
excluding research  development as a 
percentage of revenues declined modestly 
to 180 compared with 181 in 2012 
as well as investing to support the 
resource hungry new centre growth 
2013 also included £74m of transaction 
and restructuring costs related to the 
acquisition of mwb as well as a level 
of associated overheads during the  22 regus plc annual report and accounts 2013
chief financial ofﬁ cer’s review
continued
integration phase well above the 
incremental overhead now required to 
support the combined uk business 
notwithstanding this total sga 
excluding research  development 
costs per available workstation reduced 
by 38 reﬂ ecting further underlying 
improvement in overhead efﬁ ciency 
furthermore investment in people as well 
as increased automation have improved 
efﬁ ciency and is reﬂ ected in the increase 
in number of workstations supported per 
full time equivalent overhead employee to 
976 2012 769
net fi nance costs
as anticipated the signiﬁ cant investment in 
new centre growth moved the group into 
a net debt position as a consequence the 
net ﬁ nance charge increased to £93m 
2012 £51m within this year’s charge 
is £38m of fees relating to the loan and 
guarantee facilities of which approximately 
£05m resulted from the extension and 
amendment in september of our loan 
facility by £120m to £320m 
utilisation of this facility has resulted in 
additional interest payments of £16m
the group also incurred a notional 
noncash interest charge of £21m 
2012 £14m relating to the accounting 
treatment of fair value adjustments on 
various acquisitions the fair value 
adjustment relating to the acquisition of 
mwb during 2013 added approximately 
£09m to the notional charge for 2013
tax 
the tax charge for the year was 179 
2012 167 this tax rate is consistent 
with our anticipated longterm effective 
tax rate of 20 as it continued to beneﬁ t 
in 2013 from the accounting changes 
implemented in 2012
earnings per share
group earnings per share after costs 
associated with the acquisition and 
integration of mwb were 71p 2012 
75p primarily reﬂ ecting the higher 
interest costs associated with growing 
the business 
the weighted average number of shares in 
issue for the year was 943775413 2012 
941921816 as shares were issued to 
satisfy the exercise of a number of share 
grants by employees during the year
cash fl ow and funding 
the table below reﬂ ects the group’s cash 
ﬂ ow
£m 2013 2012
mature free cash ﬂ ow 1565 1494
new investment in 
new centres 3011 1784
closed centres 
cash ﬂ ow – 64
total net cash ﬂ ow 
from operations 1446 354
dividends 311 282
corporate ﬁ nancing 
activities 03 23
change in net cash 1754 659
opening net cash 1200 1883
exchange movements 18 24
closing net 
debtcash 572 1200
underlying cash generation from the 
mature business remains strong 
mature free cash ﬂ ow increased 46 to 
£1565m representing mature free cash 
ﬂ ow per share of 166p
as planned we materially increased our 
investment in growing the business 
during 2013 we invested £3011m in 
group operating performance reconciliation
the following tables reconcile the elements of our business by maturity to the group consolidated income statement down to operating 
proﬁ t and including ebitda
£m
mature centres 
2013
new centres 
2013
closed centres 
2013
total 
2013
revenue 12263 2988 84 15335
cost of sales 8673 2846 78 11597
gross proﬁ t centre contribution 3590 142 06 3738
overheads 1538 1208 11 2757
mwb transaction and restructuring related costs – 74 – 74
share of proﬁ t of joint ventures 01 – – 01
operating proﬁ t 2053 1140 05 908
ebitda 2721 837 01 1883
£m
mature centres 
2012
new centres 
2012
closed centres 
2012
total 
2012
revenue 11820 390 231 12441
cost of sales 8537 477 220 9234
gross proﬁ t centre contribution 3283 87 11 3207
overheads 1734 539 29 2302
share of proﬁ t of joint ventures 03 – – 03
operating proﬁ t 1546 626 18 902
ebitda 2168 568 07 1593
overall group revenues increased 230 and reported gross proﬁ t increased 17 to £3738m 
reported operating proﬁ t was marginally ahead of the corresponding period at £908m 2012 £902m despite the signiﬁ cant initial drag 
on proﬁ tability from growth the £74m of transaction and restructuring costs related to the acquisition of mwb and the heavy initial 
overhead cost proﬁ le that came with it  strategic report governance financial statements
  wwwreguscominvestors 23
new centres compared to £1784m in 
the corresponding period with 448 and 
243 centres added in 2013 and 2012 
respectively although the free cash ﬂ ow 
from the mature centre business continues 
to fund a sizeable proportion of this 
growth the step up in expansion in 2013 
together with the dividend distributions 
has resulted in a signiﬁ cant net cash 
outﬂ ow for the business we ended the 
year with a net debt position of £572m 
this was slightly better than expected 
mainly due to timing differences 
particularly in relation to growth capital 
expenditure payments
as our business grows in scale so does 
our ability to fund future growth from 
internal cash generation we believe that 
all other things being equal we are able 
to support approximately 15 annual 
business centre growth from internally 
generated funds currently we anticipate 
adding at least 300 business centres and a 
signiﬁ cant number of third place locations 
in 2014 accordingly during 2014 we may 
further utilise our revolving credit facility 
which was amended and extended by 
£120m to £320m in september 2013 
it has a ﬁ nal maturity date in september 
2017 with conditions that are substantially 
unchanged from last year the facility is 
provided by a consortium of nine banks 
including all six of our original banking 
partners we continue to maintain a 
prudent approach to balance sheet 
funding while ensuring the group has 
the appropriate ﬁ nancial headroom to 
execute its strategy 
the group is driven by riskadjusted 
returns and will only continue to invest 
if the macro environment is favourable 
and investment performance meets our 
exacting returns criteria accordingly 
we have always indicated that we can 
quickly curtail growth in the event that 
we determine a need to do so
foreign exchange
the group’s results are exposed to 
translation risk from the movement in 
currencies overall for 2013 the movement 
in exchange rates during the period was 
marginally beneﬁ cial and increased 
reported revenue gross proﬁ t and 
operating proﬁ t by £202m £49m and 
£12m respectively over the corresponding 
period last year with the weakening of 
sterling against the us dollar having the 
greatest impact
whilst sterling remained weak for much 
of the year it strengthened considerably 
in the ﬁ nal quarter against many of the 
currencies we operate in set out in the 
table below are some of the principal 
exchange rates affecting the group’s 
overseas proﬁ ts and net assets
the average rates for these three 
major currencies for the nine months to 
30 september 2013 were 154 117 and 
149 respectively by the end of the year 
sterling had strengthened against the 
us dollar by 71 against the euro by 
26 and 168 against the japanese 
yen when compared to the nine 
month averages
this appreciation of sterling has continued 
so far into the current ﬁ nancial year and 
will impact the ﬁ nancial results of our 
operations when translated into sterling
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 
ﬁ nancial statements for the period ended 
31 december 2013 details of related party 
transactions that have taken place in the 
period can be found in note 29 to the 2013 
annual report and accounts page 101
dividends
consistent with regus’ progressive 
dividend policy and subject to shareholder 
approval we will increase the ﬁ nal dividend 
for 2013 by approximately 14 to 25p 
2112 22p this will be paid on friday 
30 may 2014 to shareholders on the 
register at the close of business on 
friday 2 may 2014 this represents an 
increase in the full year dividend of 13 
taking it from 32p for 2012 to 36p 
for 2013 
dominique yates
chief financial ofﬁ cer
4 march 2014
foreign exchange rates
at 31 december annual average
per £ sterling 2013 2012  2013 2012 
us dollar 165 162 2 157 159 1
euro 120 123 2 118 123 4
japanese yen 174 140 24 153 128 20 24 regus plc annual report and accounts 2013
principal risks
risk management
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 
reﬂ ected 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
the successful delivery of regus’ strategy 
depends on our ability to identify and 
manage the risks associated with 
our business 
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 our investment decisions 
these activities include
• monthly business reviews of all countries 
and group functions 
• individual reviews of every new centre 
investment and all acquisitions
• annual planning process for all markets 
and group functions
• annual risk assessment exercise 
reviewed every six months with 
participation of all senior managers
board
• deﬁ nes 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 identiﬁ cation 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 proﬁ les
• tests compliance with internal controls strategic report governance financial statements
  wwwreguscominvestors 25
risk mitigation progress in 2013
strategic
lease obligations – the single 
greatest ﬁ nancial risk to regus 
is represented by the ﬁ nancial 
commitments deriving from the 
portfolio of leases held across 
the group
whilst regus has demonstrated 
consistently that it has a 
fundamentally proﬁ table business 
model which works in all 
geographies the proﬁ tability 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 signiﬁ cantly 
longer than the outstanding 
terms on our contracts with our 
customers creates a potential 
mismatch if rentals fall 
signiﬁ cantly which can impact 
proﬁ tability and cash ﬂ ows
this risk is mitigated in a number of ways
1  84 of our leases are ‘ﬂ exible’ meaning that they are 
terminable at our option within six months and are structurally 
independent in this way individual centres are sustained by 
their own proﬁ tability and cash ﬂ ow during the recent downturn 
this ﬂ exibility enabled us to negotiate revised lease terms with 
our landlords to reﬂ ect downward movements in market rental 
rates and return affected centres to proﬁ tability
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 
proﬁ tability and cash ﬂ ow of that centre from ﬂ uctuations in 
market rates is softened by the consequent adjustment to rental 
costs in a growing 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 ﬁ xed percentage of revenues 
as well as a share of centre proﬁ t
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 vary from country to country 
and region to region
during 2013 the number 
of ‘ﬂ exible’ leases as a 
percentage of the total 
increased from 82 to 84 
at the end of 2013 we were 
operating 1831 centres 
up from 1411 at the end 
of 2012 in 684 cities
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 performancerelated 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 25
we also increased the scale 
of our network by 30 to 
1831 business centre 
locations
our monthly business 
performance reviews provide 
early warning of any impact 
on our business performance 
and allows management to 
react with speed more 
generally investment in our 
management team has also 
led to improved decision
making at a country and 
area level
shifting demand and technology 
trends – demand for ﬂ exible 
working which has been aided 
by advancements in technology
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 60 in 2013 26 regus plc annual report and accounts 2013
risk mitigation progress in 2013
financial
exchange rates – the group has 
signiﬁ cant overseas operations 
whose businesses are generally 
conducted in the currency in 
which they operate the principal 
exposures of the group are to 
the us dollar and the euro 
with approximately 58 of 
the group’s revenues being 
attributable to the us dollar 
and 16 to the euro
the translation into sterling of 
overseas proﬁ ts and net assets 
will be affected by prevailing 
exchange rates any depreciation 
or appreciation would have an 
adverse or beneﬁ cial impact 
on the group’s reported 
performance and position 
respectively
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
overall in 2013 the 
movement in exchange rates 
during the period was 
marginally beneﬁ cial and 
increased reported revenue 
gross proﬁ t and operating 
proﬁ t by £202m £49m 
and £12m respectively
funding – the group relies on 
an element of external funding 
to support a net debt position 
of £572m at the end of 2013 
the loss of these facilities 
would cause a liquidity issue 
for the group
the group constantly monitors its cash ﬂ ow and ﬁ nancial 
headroom development and maintains a 12month rolling forecast 
the group also monitors the relevant ﬁ nancial ratios against the 
covenants in the facility 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
part of the annual planning process is a debt strategy and action 
plan to ensure that the group will have sufﬁ cient funding in place 
to achieve its strategic objectives
during 2013 the group 
extended and amended its 
banking facility which 
increased from £200m to 
£320m the facility is 
committed until september 
2017 and there is signiﬁ cant 
headroom on each of the 
covenant ratios
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 ﬁ nancial results
regus manages this risk through
1 business continuity plans which are regularly tested
2  a detailed service agreement with our external data centre 
provider which incorporates backup procedures and controls
3 we have appropriate business interruption insurance
during 2013 we undertook 
regular testing of business 
continuity procedures to 
ensure that they were 
adequate and appropriate
ensuring demand is there to 
support our growth – regus has 
undertaken signiﬁ cant growth 
to develop local and national 
networks adding capacity 
carries the risk of creating 
overcapacity failure to ﬁ ll 
new centres would create a 
negative impact on the group’s 
proﬁ tability and cash generation 
regus mitigates this risk as follows
1  each investment or acquisition proposal is reviewed and 
approved by the investment committee which is composed 
of the chief executive ofﬁ cer and the chief financial ofﬁ cer
2  part of the monthly business review process is the monitoring 
of new centre development against their investment case to 
ensure that the anticipated business progression and 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 growth objectives 
for the coming year in the context of a strategic plan this plan 
includes the assessment of risks and the ideal mix of deal types 
to manage the risk
in aggregate our new 
centres continue to perform 
in line with management 
expectations and are 
delivering attractive returns
principal risks
continued strategic report governance financial statements
  wwwreguscominvestors 27
risk mitigation progress in 2013
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 as an integral part of our 
business planning and review process
2  the human resources plan as part of the annual planning 
process 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 recent years 
this investment in people is 
delivering a return reﬂ ected 
in the ﬁ nancial performance 
of the group
during 2013 we also 
increased the size and 
diversity of our board with 
the addition of florence 
pierre in may
training and employee 
engagement – as we are a 
service based business the 
performance and future 
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 an insight into employee issues 
which are then used to improve the plan
during 2013 we successfully 
increased our headcount by 
1508 including 108 senior 
hires at leadership level
all general managers who 
run our business centres 
undertake a week long 
training programme as 
part of their comprehensive 
induction this is run by the 
regus training team and 
our new general managers 
are then supported by a 
coaching general manager 28 regus plc annual report and accounts 2013
corporate responsibility
our vision is to be recognised 
as a committed supporter 
of local communities
as a business that works 
across nearly 2000 
locations we have a 
responsibility to the local 
communities of which we 
are a part in 2013 we 
worked hard to impact 
positively the communities 
in which our team 
members stakeholders 
and suppliers reside
at the same time there is a clear business 
case for our engagement with local 
communities and efforts to improve their 
welfare because we are a major source 
of business for the local community and 
it for us we help develop local business 
ecosystems – recruiting and purchasing 
locally this helps improve the local 
business environment which then attracts 
other businesses to the area some of 
which may decide to use regus the 
deeper our engagement across multiple 
levels the greater this symbiotic effect 
because our community support is 
spread over a wide geographical area 
it’s important that we adhere to speciﬁ c 
selection criteria ensuring our support 
goes to areas in which we can make the 
largest positive contribution therefore 
our community engagement work in 2013 
focused on supporting local community 
groups in the vicinity of one of our 
centres and which correspond with 
one of the following
• helping businesses get started and 
enabling them to reach their full potential
• education and health
within these areas our team members 
offered different types of support in 
2013 mentoring volunteering helping 
organisations to raise their proﬁ le 
equipment support entrepreneurial 
development and arranging business 
opportunities such as networking events 
in addition we do much to increase 
awareness of those in need within our 
communities and encourage our 
customers to join our centres in taking 
an active supporting role 
all activities are coordinated monitored 
and evaluated by the corporate 
responsibility team this ensures that all 
activities are aligned and help us achieve 
our goals but also that we learn from our 
initiatives and that best practice is shared 
and replicated
here is a small selection of some of 
those activities
fundraising
regus team members across the network 
raised funds for local community groups 
charities and other organisations ranging 
from our team in the philippines collecting 
donations to support emergency relief 
measures for typhoon and earthquake 
victims to team members in the usa 
raising funds for the breast cancer charity 
susan g komen “race for the cure”
in hong kong philippines and mexico 
regus supported the makeawish 
foundation’s wishing season raising 
funds volunteering and selling christmas 
cards to help create memorable moments 
for ill children in those countries
regus teams around the world have 
also run marathons and triathlons 
skydived raced up the stairs of 
skyscrapers and slept out overnight 
to raise sponsorship funds
networking events
many regus centres hosted networking 
events bringing together local customers 
and stakeholders in addition to 
encouraging participation in community 
development activities these events 
help local entrepreneurs to develop their 
own businesses
events ranged from networking activities 
in nevada usa to support the northern 
nevada children’s cancer foundation to 
team members in newcastle uk joining 
forces with the wallace and gromit 
children’s charity to host a big breakfast 
event for customers and other local 
business people a networking evening 
for business women in brno czech 
republic raised funds for the modry 
hroch foundation which supports 
children’s hospitals
these events all help to raise awareness of 
the social needs within our communities as 
our involvement in the melbourne australia 
campaign to end violence against women 
and the são paulo brazil campaign raising 
awareness of breast cancer have shown
gifts in kind
since 2012 regus has supported the 
start up loans initiative a uk government 
backed venture which helps young 
entrepreneurs set up a business regus 
offers the entrepreneurs a virtual ofﬁ ce for 
a sixmonth period to date almost 1000 
new businesses have been supported
in a number of centres in the uk and north 
america regus facilitated collections of 
unwanted business technology working 
with computers for charities and world 
computer exchange to bring refurbished 
it to public education facilities in africa
other gifts in kind from regus teams 
ranged from children’s toys donated by 
our teams in argentina romania and 
australia to arranging donations of 
blankets on mandela day for a homeless 
shelter in south africa
volunteering
in munich germany team members joined 
with regus customers to help clean up 
after severe ﬂ ooding in some parts of the 
city those who could not join the cleanup 
donated refreshments gloves and bin 
liners meanwhile in south africa regus 
staff supported the 2013 “santa cause” 
children’s and orphans christmas party 
both volunteering at and cosponsoring 
the event our team in india formed a 
partnership with enactus – an organisation 
which uses entrepreneurial action to 
strengthen communities  strategic report governance financial statements
  wwwreguscominvestors 29
regus philippine appeal supporting the abscbn 
foundationsagip kapumilya
fundraising to support humanitarian relief efforts in the 
philippines following typhoon yolanda haiyan
gearing up for a cycling challenge in support of marie curie cancer care
running in the paris marathon for ‘get kids going’
prague run up challenge raising funds for the czech young 
sportsmen association 30 regus plc annual report and accounts 2013
corporate responsibility
continued
christmas charitable activities
in 2013 the team at a group operational 
level donated the company’s contribution 
to its christmas party to charity the 
monies were then distributed to a variety 
of organisations nominated and selected 
by the team
regus centres in the uk supported 
operation christmas child acting as 
collection points for shoeboxes ﬁ lled with 
small gifts for disadvantaged children 
around the world through their efforts 
more than 5000 disadvantaged children 
received a christmas gift
our team in hong kong also supported 
the concordia welfare and education fund 
which provides education to children in 
parts of asia
those activities are just a few examples 
of our community engagement in 2013 in 
addition to making a positive contribution 
to local communities the examples are an 
illustration of the engagement dynamism 
and creativity of regus team members 
across the world
environmental impact
we continue to improve our environmental 
performance for our traditional centres 
and as stated in our environmental policy 
are still committed to a 50 reduction in 
co
2
 emissions for our uk business by 
2020 based on our 2007 base year
in 2013 we achieved an average 31 
reduction target 29 from our 2007 base 
in our scope 1 and scope 2 emissions 
for our uk regus centres see chart 
below to meet our 2020 target we will 
need to achieve a 5 yearonyear 
reduction from now until then this may 
prove challenging due to the acquisition 
of mwb whose locations are signiﬁ cantly 
less efﬁ cient than our existing centres 
however our teams are currently working 
hard putting in place carbon reducing 
policies and measures to improve their 
energy efﬁ ciency once this work has 
been completed we will review our 
overall progress and revise our 
targets accordingly 
regus are full participants in the uk 
carbon reduction commitment energy 
efﬁ ciency scheme crc and have 
successfully completed the registration 
for phase 2 we are delighted to report 
an ongoing reduction in our purchased 
allowances of nearly 9 from the start 
of phase 1 for the existing uk portfolio 
indicating that our carbon reduction 
policies are working however due to the 
timing of the mwb acquisition under the 
crc rules regus automatically became 
responsible for the whole of mwb’s crc 
year we had to subsequently purchase 
15227 additional crc allowances at a 
cost of £182724 to cover all of mwb’s 
emissions in carbon allowance terms this 
is nearly half as much again as the existing 
regus portfolio
in the past year as part of our ongoing 
maintenance programme we have 
undertaken many hundreds of small 
projects across our portfolio these 
improve our energy efﬁ ciency and in 
aggregate help to reduce carbon 
emissions overall typical projects 
include building controls upgrade 
heating and chiller upgrades and 
lighting improvements
finally we will be refreshing our 
behavioural change programme in 2014 
to further embed greener working 
across our centres our greener working 
champions will be encouraging staff and 
clients alike to help regus reduce its global 
environmental impact this will include 
further practical measures to improve the 
efﬁ ciency of energy and water usage in 
centres and reduce the amount of general 
waste by making more use of our mixed 
recycling facilities
0
50
100
150
200
2013 2012 2011 2010 2009 2008
regus uk yearly average kg co
2
 per occupied workstation
regus uk – actual regus uk – target
2013 average 31 reduction from 2007 base line target 29
our progress this year
reduction of the uk carbon footprint
31

since 2007
reduction in total crc reported 
carbon emissions
9

since 2010 strategic report governance financial statements
  wwwreguscominvestors 31
children bring a lot of festive cheer to regus in the uk
supporting operation christmas child with the shoebox appeal
creating a magical day for orphans in 
south africa
taking part in the big summer 
sleepout in support of 
“stepbystep” 
giving unwanted business technology a new lease on life 32 regus plc annual report and accounts 2013
board of directors
the role of the board is to provide 
entrepreneurial leadership and to review 
the overall strategic development of 
the group
douglas sutherland n
chairman
douglas sutherland was appointed nonexecutive director of 
regus on 27 august 2008 and was appointed nonexecutive 
chairman on 18 may 2010 douglas was chief financial ofﬁ cer 
of skype during its acquisition by ebay and was also chief 
financial ofﬁ cer at securewave during its acquisition by 
patchlink prior to this douglas was previously an arthur 
andersen partner with international management responsibilities 
he has served as a director of companies in several jurisdictions 
and was the founding chairman of the american chamber of 
commerce in luxembourg douglas is currently also a director 
of median kliniken sà rl and median gruppe sà rl
mark dixon
chief executive ofﬁ cer
chief executive ofﬁ cer 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 yates
chief financial ofﬁ cer
dominique yates was appointed chief financial ofﬁ cer on 
1 september 2011 previously he served as chief financial 
ofﬁ cer 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 qualiﬁ ed 
chartered accountant
lance browne a n r
senior independent nonexecutive director
lance browne was appointed nonexecutive director of regus 
on 27 august 2008 became senior independent director on 
18 may 2010 and chairman of the nomination committee on 
27 september 2012 lance is vice chairman of standard 
chartered bank china ltd chairman of travelex china and 
advisory council member of g3 he 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
elmar heggen a n r
independent nonexecutive director
elmar heggen was appointed nonexecutive director of regus 
on 1 june 2010 and was appointed chairman of the audit 
committee on 27 september 2012 elmar has extensive 
management experience and is currently chief financial ofﬁ cer 
and head of the corporate centre at rtl group the leading 
european entertainment network where he has held various roles 
since 2000 he is also a board member of atresmedia spain and 
metropole television france elmar began his career at the felix 
schoeller group becoming vice president  general manager of 
felix schoeller digital imaging in the uk in 1999
florence pierre a n r
independent nonexecutive director
florence pierre was appointed nonexecutive director of regus 
on 21 may 2013 she currently shares her time between 
directorships consulting and venture investments in companies 
providing innovative and internet services she has over 30 years 
of international corporate ﬁ nance practice holding senior positions 
at bnp  financière rothschild degroof corporate finance 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 ﬁ nance published 
a number of books and articles on valuation and has been a 
member of several french entrepreneurship and innovation 
committees both governmental and professional
alex sulkowski a n r
independent nonexecutive director
alex sulkowski was appointed nonexecutive director of regus 
on 1 june 2010 he also serves as chairman of the remuneration 
committee having been appointed on 27 september 2012 
alex has over 30 years of experience in international ﬁ nance 
structures private equity tax advice and real estate he is 
currently the managing director of third millennium investments 
sa and 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
notes
a member of the audit committee
n member of the nomination committee
r member of the remuneration committee
an experienced team strategic report governance financial statements
  wwwreguscominvestors 33
the board is committed to high standards of corporate 
governance as set out in the revised uk corporate governance 
code published in september 2012 the ‘code’ the code is 
available at wwwfrcorguk the board is accountable to the 
company’s shareholders and this report describes how the  
board applied the principles of good governance 
the board 
at 31 december 2013 the board of directors was made up  
of seven members comprising the chairman two executive 
directors and four nonexecutive directors biographical details  
of the directors are set out on page 32 
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 six 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 florence pierre 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 increase diversity including gender 
diversity our board is now 14 female 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 entrepreneurial 
leadership and to review the overall strategic development of  
the group the board approves the corporate plan and the 
annual budget and reviews performance 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 rotating 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 2013 
the number of meetings of the board and committees and 
individual attendance by the directors are shown below  
florence pierre having joined the board and its committees  
on 21 may 2013 
main 
board
audit 
committee 
nomination 
committee
remuneration 
committee
total meetings 8 5 4 4
douglas sutherland 8  4
mark dixon 8  
dominique yates 8 
lance browne 8 5 4 4
elmar heggen 7 5 4 4
florence pierre 5 4 3 3
alex sulkowski 7 5 4 4
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 investment 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 
roles of board members 
there is a clear division of responsibilities between the chairman 
and the chief executive 
the chairman 
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 
the chairman together with the company secretary is 
responsible for ensuring all directors are properly briefed on 
issues arising at board meetings and that they have full and  
timely access to relevant information 
the chairman is considered by the board to be independent in 
character and judgement 
corporate governance 34 regus plc annual report and accounts 2013
the chief executive 
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 
nonexecutive directors 
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 
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 
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 below 
audit committee 
• elmar heggen chairman 
• lance browne 
• florence pierre 
• alex sulkowski 
details of the audit committee and its activities during the year 
are set out in the audit committee report on pages 38 to 40 
remuneration committee 
• alex sulkowski chairman 
• lance browne 
• elmar heggen 
• florence pierre 
details of the remuneration committee and its activities during 
the year are set out in the remuneration report on pages 41  
to 53 
nomination committee 
• lance browne chairman 
• elmar heggen 
• florence pierre 
• alex sulkowski 
• douglas sutherland 
the nomination committee meets as required during the year to 
consider matters delegated to it under its terms of reference 
board effectiveness performance leadership and succession 
planning were discussed informally by the board as a whole 
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 
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 the group 
reorganisation 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 
corporate governance
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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 ukresident but nonukdomiciled individuals 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 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 
• 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 
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 
control processes 
the company has had procedures in place throughout the year 
and up to 4 march 2014 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 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 
   36 regus plc annual report and accounts 2013
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 
internal audit department that includes key business risk areas 
• reporting the findings and recommendations of each review to 
management and the audit committee 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  
other matters 
board performance evaluation 
following an external evaluation in 2012 an internal evaluation of 
board performance was conducted for 2013 
the results of the 2013 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 
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 non
executive 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 
  
corporate governance
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  wwwreguscominvestors 37
 
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 
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 2013 
with the exception of the following 
• 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 38 regus plc annual report and accounts 2013
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 34 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 normally meets at least three times a year 
and during the year to 31 december 2013 met five times 
attendance at those meetings is shown on page 33 of the 
corporate governance report at the request of the 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 
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 24 to 27 
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 
  
audit committee report strategic report governance financial statements
  wwwreguscominvestors 39
 
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 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 actionoriented 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 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 provision of a copy of the ‘team member handbook’ to  
all team members 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 selfcertification 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 2013 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 
   40 regus plc annual report and accounts 2013
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 sà rl were the company’s auditors for  
the year ended 31 december 2013 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 sà rl 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 sà rl performed buyside 
due diligence work on certain acquisitions by the group  
it is the company’s policy to use the external auditors for non
audit 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 2013 can be found in note 5 of the notes to 
the accounts  
for the year ending 31 december 2014 the audit committee has 
recommended to the board that a resolution to reappoint kpmg 
luxembourg sà rl as the company’s auditors be proposed at 
the annual general meeting 
the audit committee notes the recent 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 over the last 
several years which includes the mix of countries in which much 
of the audit work is conducted the rapid growth and evolving 
structure of the group a change in chief financial officer 
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 is also monitoring developments in 
the proposed 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 sà rl as the company’s auditors 
audit committee report
continued strategic report governance financial statements
  wwwreguscominvestors 41
dear shareholder  
as the chairman of the remuneration committee i am pleased to 
present to you this year’s report on directors’ remuneration  
changes to remuneration reporting in the uk 
since last year’s report new remuneration reporting regulations 
have come into effect for ukincorporated listed companies  
as a company incorporated under luxembourg law we are  
not legally required to adopt the new regulations however in 
keeping with our longstanding commitment to good corporate 
governance we will continue to voluntarily prepare a directors’ 
remuneration report and we will do so on the basis of the 
requirements of the new regulations  
the report is therefore split into two sections 
• remuneration policy pages 4246 this sets out our executive 
remuneration framework and policies  
• annual report on remuneration pages 4753 this details  
the implementation of our policies in the current year and our 
approach for 2014 
both will be submitted for shareholder approval at the forthcoming 
agm given the different legal jurisdiction in which we are 
incorporated the approval of our remuneration policy will be  
on an advisory rather than a binding basis  
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 exceptional 
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 exceptional returns 
to shareholders and be given the opportunity to receive 
exceptional 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 long term through substantial share 
ownership and sharebased incentives this is achieved via  
our coinvestment plan cip which measures performance 
over periods of up to five years and through our share 
ownership guidelines 
decisions in respect of 2013 
• based on achievement against adjusted operating profit targets 
in the context of the significant increase to mature operating 
profit and substantial increase in new centres during the year 
discussed in more detail on pages 19 to 23 of the annual 
report we awarded bonuses of 79 of salary 79 of the 
maximum 100 to the executive directors half of the 
awarded bonuses will be deferred as regus investment  
shares for three years under the cip see below 
• the committee reviewed performance over the fouryear 
performance period to 31 december 2013 under the second 
tranche of matching shares awarded to mark dixon under  
the 200809 cip award based on achieving adjusted eps  
of 172p and tsr of 126 vs ftse all share 51 the 
committee determined that 35 of the second tranche  
should vest 
2014 decisions 
• there will be no salary increases for the executive directors  
in 2014 
• the structure and quantum of our incentive opportunities will 
remain unchanged as set out in the policy table on page 42  
• based on the deferral of half of the 2013 bonus ie 385 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 158 of salary  
• these cip matching shares will vest based on performance 
against stretching targets over performance periods of three 
four and five years 75 of the award will be based on eps 
with targets which require annual growth of 2535 pa for 
maximum vesting the remaining 25 will be based on our 
total shareholder return tsr ranking against the constituents 
of the ftse 350 excluding financial services and mining  
we look forward to receiving your support for both resolutions at 
the 2014 agm 
 
alex sulkowski 
chairman remuneration committee 
  
remuneration report 42 regus plc annual report and accounts 2013
this report has been prepared by the remuneration committee in line with the uk corporate governance code listing rules  
and schedule 8 of the large and mediumsized companies and groups accounts and reports amendment regulations 2013  
the company has been incorporated subject to luxembourg law rather than uk law as a result the company does not have the 
benefit of the statutory protections afforded by the uk companies act in the event that there were to be any inconsistency between  
the company’s approved policy report and any contractual entitlement or other rights of a director therefore in the event that there 
were to be such an inconsistency the company may be obliged to honour the contractual entitlement or right notwithstanding that it  
is inconsistent with the contents of the approved policy report 
remuneration policy 
this remuneration policy as determined by the remuneration committee will be effective following shareholder approval at the 2014 
annual general meeting  
policy table for executive directors  
component 
purposelink to 
strategy operation maximum performance framework 
base salary to provide a 
competitive 
component  
of fixed 
remuneration to 
attract and retain 
people of the 
highest calibre 
and experience 
needed to shape 
and execute the 
company’s 
strategy 
salaries are set by the committee taking 
into all relevant factors which may include 
the scope and responsibilities of the role  
the skills experience and circumstances  
of the individual sustained performance  
in the role the level of increase for other 
roles within the business and appropriate 
market data  
reviewed annually and any changes 
normally made effective from 1 january  
the base salaries effective 1 january  
2014 are set out on page 47 of the  
annual remuneration report 
there is no prescribed 
maximum salary salary 
increases will normally  
be broadly in line with 
increases awarded to 
other employees in the 
business although the 
committee retains 
discretion to award larger 
increases if it considers  
it appropriate eg to 
reflect a change in role 
development and 
performance in role or  
to align to market data  
na 
benefits to provide a 
competitive 
benefits package 
incorporates various cashnoncash  
benefits which may include a company car 
or allowance and fuel allowance private 
health insurance life assurance and  
where necessary other benefits to reflect 
specific individual circumstances such  
as housing or relocation allowances 
representation allowances reimbursement 
of school fees travel allowances or other 
expatriate benefits  
benefit provision is set at 
an appropriately market 
competitive rate for the 
nature and location of  
the role there is no 
prescribed maximum  
as some costs may 
change in accordance 
with market conditions  
na 
pension to provide 
retirement 
benefits in line 
with the overall 
group policy 
provided through participation in the 
company’s money purchase personal 
pension scheme under which the 
company matches individual contributions 
up to a maximum of base salary 
7 of base salary  
the committee may set 
a higher level to reflect 
local practice and 
regulation if relevant  
na 
annual 
bonus 
to incentivise 
and reward 
annual 
performance for 
shareholders 
provides an opportunity for additional reward 
up to a maximum specified as a  of salary 
based on annual performance against 
targets set and assessed by the committee 
up to 50 of any gross bonus earned can 
be deferred into investment shares under 
the cip see below the remainder is paid  
in cash 
100 of base salary  
per annum 
payment is determined 
by reference to 
performance assessed 
over one year using 
performance measures 
which are aligned to  
the objectives of the 
business for the year 
currently operating profit 
  
remuneration report
continued strategic report governance financial statements
  wwwreguscominvestors 43
 
component 
purposelink to 
strategy operation maximum performance framework 
co
investment 
plan cip 
exists 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 
company 
performance  
awards are made under the terms of the 
regus plc coinvestment plan approved  
by shareholders in general meeting in 2008 
the cip has two elements 
matching shares element 
this operates in conjunction with the annual 
bonus arrangements whereby a gross bonus 
of up to 50 of base salary is awarded as  
a deferred amount of shares investment 
shares which will be released at the end  
of a holding period of not less than three 
years subject to continued employment 
the participant may then earn additional 
shares matching shares based on the 
number of investment shares awarded and 
the company’s longterm performance  
the maximum ratio of matching shares  
to investment shares is 41 
ltip element 
an award of shares to be released at the 
end of a period of not less than three years 
based on the company’s longterm 
performance 
awards of investment shares matching 
shares and ltip awards can be made in  
the form of either a nil cost option or a 
conditional right to shares 
awards may vest early on leaving 
employment or on a change of control  
see later sections 
matching shares 
element award size  
of 200 of salary  
per annum 
ltip element award  
size of 100 of salary 
per annum 
matching shares and 
ltip will not normally  
be awarded in the  
same year 
vesting is determined by 
reference to performance 
assessed over a period 
of at least three years 
with awards normally 
split equally over periods 
of three four and five 
years there is no 
opportunity for retesting 
performance for 2014 
awards will be assessed 
against key measures of 
longterm performance 
• earnings per share 
eps 
• total shareholder 
return tsr 
for future awards the 
committee may include 
other quantitative 
financial performance 
measures which are 
aligned to strategic 
objectives and 
shareholder value 
the performance 
measures framework  
will normally be  
weighted towards eps 
the threshold level  
of vesting is 25 of  
the maximum 
 
executive directors may hold awards under the regus plc share 
option plan granted in respect of their recruitment or prior to  
and not in contemplation of their appointment to the board 
however this does not form part of their annual remuneration 
framework such awards are made under the terms of the regus 
plc share option plan approved by shareholders in general 
meeting in 2008 options are granted over regus shares with  
an exercise price not less than the market value of shares on the 
date of grant awards may not be exercised before three years 
from grant and up to a maximum of ten years following grant 
awards may vest early on leaving employment or on a change  
of control the committee may make an award subject to a 
performance condition or other condition 
 
the committee reserves the right to make any remuneration 
payments and payments for loss of office including exercising  
any discretions available to it in connection with such payments 
notwithstanding that they are not in line with the policy set out 
above where the terms of the payment were agreed i before  
the policy came into effect or ii at a time when the relevant 
individual was not a director of the company and in the opinion  
of the committee the payment was not in consideration for  
the individual becoming a director of the company for these 
purposes “payments” includes the committee satisfying awards  
of variable remuneration and in relation to an award over shares 
the terms of the payment are “agreed” at the time the award  
is granted the committee may make minor amendments to  
the policy set out above for regulatory exchange control tax  
or administrative purposes or to take account of a change  
in legislation without obtaining shareholder approval for  
that amendment  
   44 regus plc annual report and accounts 2013
policy table for the chairman and nonexecutive directors 
component approach of the company 
chairman fees determined by the remuneration committee  
a single fee which reflects all board and committee duties 
set at a level sufficient to attract and retain individuals with the required skills experience and  
knowledge to allow the board to effectively carry out its duties 
nonexecutive director fees determined by the chairman and the executive directors 
the fee encompasses a basic fee and may also include supplementary fees for committee or  
other duties 
set at a level sufficient to attract and retain individuals with the required skills experience and  
knowledge to allow the board to effectively carry out its duties 
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  
performance measures and target setting 
the annual bonus is based on stretching financial performance 
targets determined by the committee at the start of the year 
operating profit is the performance measure for 2014 as this  
is a key performance indicator for the business 
the cip is based on longterm performance using performance 
measures which the committee feels are most appropriate for  
the company for 2014 awards are based on eps which the 
committee believes is the most appropriate measure of financial 
and operational performance delivered for shareholders and tsr 
to ensure that an element of reward is based on value delivered 
for shareholders the performance targets for cip awards are 
determined by the committee at the time of grant  
under the rules of the cip if events occur which cause the 
committee to consider that the performance targets have become 
unfair or impractical the committee has discretion to amend the 
target so that in the opinion of the committee it is no more or less 
difficult to satisfy than when it was awarded 
differences in the company’s policy on the remuneration  
of employees generally  
regus operates in a number of different geographies and 
therefore employee remuneration practices vary widely across  
the employee population within the group however employee 
remuneration policies are normally based on the same  
broad principles 
• they are sufficient to attract and retain the calibre of talent 
necessary to deliver the strategy for shareholders 
• the committee believes firmly in the effectiveness of shortterm 
incentives as a mechanism for incentivising and rewarding 
annual financial performance for shareholders accordingly 
incentive schemes are widely used across the business 
• the group operates various employee share incentive schemes 
to encourage employee share ownership 
• executive directors participate in the pension plan on the same 
basis as other employees 
consideration of conditions elsewhere in the group 
when setting the policy for the remuneration of the executive 
directors the committee has regard to the pay and employment 
conditions of employees within the group the committee  
does not consult directly with employees when formulating  
the remuneration policy for executive directors  
consideration of shareholder views 
views expressed by the company’s shareholders were taken into 
account by the committee in the development of the company’s 
remuneration framework  
the members of the committee including the chairman attend 
the company’s annual general meeting and are available to  
listen to views and to answer shareholders’ questions about 
directors’ remuneration 
the committee also reviews the executive remuneration 
framework in the context of published shareholder guidelines  
approach to recruitment remuneration 
when determining the remuneration package for a newly 
appointed executive director the committee would seek to  
apply the following principles  
• the package must be sufficiently competitive to facilitate the 
recruitment of individuals of the highest calibre and experience 
needed to shape and execute the company’s strategy  
at the same time the committee would seek to pay no  
more than necessary  
• the structure of the annual remuneration package would follow 
that described in the policy table for executive directors on 
page 42 salaries would reflect the skills and experience of  
the individual and may be set at a level to allow future salary 
progression to reflect performance in role 
• the committee considers that having flexibility to respond  
to the specific commercial circumstances of a recruitment 
situation is in the best interests of the company and its 
shareholders particularly in exceptional or unexpected 
circumstances which can arise when seeking to facilitate  
senior executive recruitment therefore the maximum level of 
variable remuneration which may be awarded is 450 of salary 
which would be subject to stretching performance conditions 
  
remuneration report
continued strategic report governance financial statements
  wwwreguscominvestors 45
 
• where an individual forfeits remuneration at a previous employer 
as a result of appointment to the company the committee  
may offer compensatory payments or awards to facilitate 
recruitment such payments or awards could include cash  
as well as performance and nonperformance related share 
awards and would be in such form as the committee 
considers appropriate taking into account all relevant factors 
such as the form expected value anticipated vesting and 
timing of the forfeited remuneration there is no limit on the 
value of such compensatory awards but the committee’s 
intention is that the value awarded would be no higher than 
value forfeited while cash may be included to reflect the 
forfeiture of cashbased remuneration the committee does  
not envisage that substantial “golden hello” cash payments 
would generally be offered 
• any sharebased awards referred to in this section will be 
granted as far as possible under the company’s existing share 
plans if necessary awards may be granted outside these  
plans as permitted under the listing rules and in line with  
the approach and the limits set out above  
the remuneration package for a newly appointed nonexecutive 
director would normally be in line with the structure set out in the 
policy table for nonexecutive directors on page 44 
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 this applies to current executive directors and 
would normally be applied as the policy for future appointments  
the company may terminate 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 1 september 2011 without requiring notice 
under the current service agreements of the executive directors 
on a change of control the director may terminate the contract  
by giving one month’s notice and will in addition to contractual 
payments for the onemonth notice period receive a payment 
equal to 12 months’ salary and remain eligible for a  
discretionary bonus  
the chairman and nonexecutive directors are appointed for a 
threeyear term which is renewable with six months’ notice on 
either side no contractual termination payments being due and 
subject to retirement pursuant to the articles of association at  
the annual general meeting 
policy on payment for loss of office 
where an executive director leaves employment the committee’s 
approach to determining any payment for loss of office will 
normally be based on the following principles  
• the committee’s objective is to find an outcome which is in the 
best interests of the company and its shareholders taking into 
account the specific circumstances contractual obligations 
and seeking to pay no more than is warranted payments in lieu 
of notice will not exceed 12 months’ salary and benefits 
• the committee has discretion to make a payment under the 
annual bonus this will reflect the period of service during  
the year and performance measured at the same time as 
performance for other plan participants if feasible 
• the treatment of outstanding share awards would be 
determined by the relevant plan rules as summarised in  
the table  
• the committee reserves the right to make additional exit 
payments where such payments are made in good faith  
in discharge of an existing legal obligation or by way of  
damages for breach of such an obligation or by way of 
settlement or compromise of any claim arising in connection 
with the termination of a director’s office or employment  
cip investment 
shares 
shares will be released to the participant  
the number of which unless the committee 
determines otherwise would reflect the 
proportion of the holding period that  
had elapsed 
cip matching 
shares or ltip  
awards will lapse unless the committee in its 
absolute discretion determines otherwise for 
reasons including amongst others injury 
disability retirement redundancy and death 
the release of such awards will be dependent 
on the proportionate satisfaction of the 
performance target on the date of cessation 
and will be reduced prorata to reflect the 
proportion of the holding period that  
had elapsed 
share options unvested options will lapse unless specified 
otherwise in the terms of grant or if the 
committee so determines vested options  
can be exercised within sixmonths of  
cessation or such longer period as the 
committee may decide not exceeding  
42 months after cessation  
 
   46 regus plc annual report and accounts 2013
change of control and capital events 
the treatment of outstanding share awards would be dealt with in accordance with the relevant plan rules as summarised in the table  
change of control cip investment shares will be released  
cip matching shares or ltip awards will be released the proportion of any such awards 
released being dependent on the degree of satisfaction of the performance requirements on 
such date and in the committee’s discretion the length of any holding period completed 
unvested share options may only be exercised to the extent that the committee decides 
based on the proportionate satisfaction of the performance targets taking into account the 
length of the period which has expired 
mergers  if the company merges with another company or any of the businesses of the group are 
demerged the committee shall have discretion as to whether to release or adjust any  
cip award 
variation of share capital if a variation of capital takes place then the number of shares subject to any award and the 
terms and conditions applying to such awards may be adjusted in such a manner as the 
committee may determine to be appropriate and as the auditors of regus shall have 
confirmed in writing to be in their opinion fair and reasonable 
illustration of remuneration policy 
the charts below illustrate the application of the remuneration policy set out in the policy table for executive directors this assumes 
the level of fixed remuneration salary benefits and pension as at 1 january 2014 and the following in respect of each scenario 
• “minimum” represents fixed remuneration only 
• “target” represents annual bonus of 50 of salary half of which is deferred into the cip and eligible for a maximum of four matching 
shares it is assumed the matching shares vest at the threshold level of 25 of maximum  
• “maximum” represents the maximum annual bonus of 100 of salary half of which is deferred into the cip and eligible for a 
maximum of four matching shares it is assumed the matching shares vest in full 
 
  
0
500
1000
1500
2000
2500
maximum target minimum
100
13
48
24
28
£2441
£1120
26
61
£680
0
500
1000
1500
2000
2500
maximum target minimum
100
23
66
11
45
22
33
£1521
£752
£496
fixed pay salary beneﬁts pension annual bonus cip
chief executive ofﬁcer mark dixon
£’000
chief financial ofﬁcer dominique yates
£’000
remuneration report
continued strategic report governance financial statements
  wwwreguscominvestors 47
 
annual report on remuneration 
the table below sets out the total remuneration for the directors in respect of 2013 further discussion of each of the components 
including the intended operation of the policy for 2014 is set out on the pages which follow none of the disclosures has been audited  
single total figure of remuneration table 
the remuneration in respect of the year ending 31 december 2013 of the executive directors who served during the year is shown in 
the table below with the prior year comparative  
 salary benefits pension annual bonus cip other total 
£’000 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
mark dixon 5870 5650 517 509 411 395 4637 5650 6644 5522 – – 18079 17727
dominique 
yates 3416 3346 1228 1530 315 96 2699 3346 – – – 5292 7657 13610
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 for dominique yates it also includes a representation allowance expatriate 
allowances and a car allowance 2012 only 
annual bonus – includes the full value of the annual bonus awarded in respect of the relevant financial year in both 2013 and 2012 
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 second tranche of the 20082009 matching 
shares is included in the 2013 column 334047 shares vested out of the maximum of 954420 the vesting of the 2010 ltip shares 
and the first tranche of the 20082009 matching shares is included in the 2012 column  
other – dominique yates was granted market value share options over one million shares in 2011 to aid his recruitment exercise price 
7435p based on the achievement against 2012 operating profit targets the remuneration committee determined that 91 of the 
options vested the vested options will become exercisable in equal tranches in 2014 2015 and 2016  
the remuneration in respect of the year ending 31 december 2013 of the chairman and nonexecutive directors who served during the 
year is shown in the table below with the prior year comparative  
 fees 
£’000 2013 2012
douglas sutherland 1650 1650
lance browne 615 570
elmar heggen 500 500
alex sulkowski 500 500
florence pierre 274 –
florence pierre was appointed as a nonexecutive director with effect from 21 may 2013  
the nonexecutive directors do not receive any other remuneration from the company 
key components of remuneration 
the following sections describe how the committee implemented key elements of the policy in the year ending 31 december 2013 and 
how it is intended to operate in the year ending 31 december 2014  
base salary and benefits 
the base salaries of the executive directors effective 1 january 2014 are set out in the table below together with the prior year 
comparative 
 2013 2014
mark dixon ceo £587000 £587000
dominique yates cfo chf495000 chf495000
  the salary for dominique yates is denominated and paid in swiss francs  
   48 regus plc annual report and accounts 2013
benefits 
both executive directors receive private health insurance and life assurance the ceo also receives a carfuel allowance the cfo  
also receives a representation allowance and housingexpatriate allowances the benefits policy will remain the same for 2014  
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 
annual bonus 
in 2013 the executive directors had a maximum bonus opportunity of 100 of salary based on performance against stretching 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 growth costs in order to ensure that the bonus does not act as a disincentive to the investment in  
new centres which underpins the longterm growth strategy  
based on the adjusted operating profit achieved in the year the committee determined that performance was between the target and 
maximum levels and therefore the chief executive officer and chief financial officer should each receive a bonus of 79 of salary  
79 of maximum in respect of the year  
in considering the bonus for the year the committee took into the following performance context explained in more detail on pages  
19 to 23 of the annual report 
• growth in mature operating profit from £1546m to £2053m with an increase in margin from 131 to 167 
• the addition of 448 new centres in excess of the 300 expected at the start of the year 
• the substantial returns to shareholders delivered via a doubling in the share price over the year 
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 395 of salary is paid in cash and half the remaining 395 of salary will be awarded in the form of 
investment shares the vesting of which will be deferred for three years under the rules of the cip discussed in more detail below  
there are no changes in bonus quantum or structure for the 2014 financial year the maximum opportunity will remain at 100 of 
salary and 50 of the bonus earned being deferred into investment shares for three years the bonus will continue to be assessed 
against stretching adjusted operating profit targets  
cip awards vesting in respect of 2013 
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 vesting conditions are outlined below 
tsr target 25 of each 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 each tranche 
 eps targets for years ending 
vesting scale 
2013  
tranche 2 
2014 
tranche 3
25 17p 18p
50 20p 22p
75 23p 26p
100 26p 30p
 
  
remuneration report
continued strategic report governance financial statements
  wwwreguscominvestors 49
 
the second tranche of the 2008 and 2009 matching share was based on a fouryear performance period to 31 december 2013  
the committee has assessed performance against the tsr and eps targets set in 2010 and concluded that 35 of the second 
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 2259 compared to 1510 for the ftse all share index 
over the performance period equating to a vesting of 6175 of this part of the award  
• eps 75 based on an adjusted 2013 eps of 172p which reflects underlying performance adjusted to exclude the positive  
impact of changes in accounting policy and estimates implemented during 2013 and to exclude certain growth costs and oneoff 
exceptional items in accordance with the terms of the original award the committee concluded that 30 of this part of the award 
should vest  
the final tranche of the 2008 and 2009 matching share awards will vest in march 2015 subject to performance over the fiveyear period 
to 31 december 2014  
cip awards made in 2013 
the executive directors deferred 50 of their 2012 annual bonus into investment shares under the cip the investment shares  
will vest and be released at the end of a threeyear 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 
details of the investment share and matching share awards made during 2013 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 £283 na 6 march 2016
 matching shares £1130 25 one third 31 december 2015 
2016 and 2017
dominique yates investment shares £173 na 6 march 2016
 matching shares £693 25 one third 31 december 2015 
2016 and 2017
the face value has been calculated using the share price of 1498p the closing price prior the date of grant 6 march 2013  
the matching shares awarded in 2013 are subject to the following performance conditions 
tsr target 25 of each tranche 
regus tsr  achieved relative to ftse all share total return index 
 of shares 
vesting
below index 0
equal to index 25
equal to index 15 pa 100
straightline vesting between these points 
eps target 75 of each tranche 
eps targets for years ending 
vesting scale 
2015  
tranche 1 
2016 
tranche 2
2017 
tranche 3
25 120p 140p 160p
50 126p 146p 166p
75 133p 153p 173p
100 140p 160p 180p
straightline vesting between these points 
eps is defined as basic eps of the group as adjusted to take into account oneoff exceptional items which do not appropriately reflect 
underlying performance of the group the equivalent eps figure for 2012 was 75p 
   50 regus plc annual report and accounts 2013
cip awards to be made in 2014 
the executive directors will defer 50 of their 2013 annual bonus into investment shares under the cip these investment shares  
will vest after three years in line with the terms described above for each investment share the executive directors will be awarded  
the opportunity to earn up to four matching shares as described above the investment shares will have a value of 395 of salary 
implying a maximum number of matching shares to be awarded in 2014 of 158 of salary the number of investment shares and 
matching shares awarded will be disclosed when granted and in next year’s report 
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 
eps targets for years ending 
vesting scale 
2016  
tranche 1 
2017  
tranche 2 
2018 
tranche 3
25 143p 161p 171p
100 170p 202p 255p
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 as illustrated in the tables in the 
sections above for 2014 awards the committee has recalibrated the tsr targets which are now based on the ranked tsr 
performance of regus against the constituents of the ftse 350 excluding financial services and mining companies the committee 
believes that given the absence of any listed peer companies the use of a broad equity index remains 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 will be 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 number of new centres 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 investment in new centres which underpins the longterm growth strategy the equivalent basic eps figure for 2013 
would be 71p and therefore the targets represent at the maximum approximately 2634 growth per annum which the committee 
believes is very stretching in the current environment particularly over performance periods which extend over three four and five years 
pension  
the executive directors participate in the company’s money purchase pension scheme the company matches contributions up to a 
maximum of 7 of basic salary the committee considers that the pension benefits of the executive directors are low compared with 
comparative companies but prefers to offer enhanced variable compensation rather than a fixed additional pension contribution  
the group does not operate a groupwide defined benefit pension scheme with the exception of switzerland where pension schemes 
are treated as such for accounting purposes and has no plans to introduce such a scheme 
  
remuneration report
continued strategic report governance financial statements
  wwwreguscominvestors 51
 
statement of share scheme interests and shareholdings 
under the regus shareholding guidelines executive directors are expected to build up a shareholding equivalent to 200 of base 
salary the chairman and nonexecutive directors are not subject to the share ownership guidelines 
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 2013 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 323113249 200 119557  yes 188585   2663180  –  
dominique yates 741989 200 472  yes 115709   462836  907333  
chairman and nonexecutive 
directors   
douglas sutherland 400000 
lance browne – 
elmar heggen – 
alex sulkowski – 
florence pierre – 
a based on share price 2172p and base salary as at 31 december 2013 
b the cip investment shares are in the form of unvested conditional shares granted on 6 march 2013 and which vest subject to continued employment at the end 
of a threeyear 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 31 december 2013 for mark dixon the number includes1908840 
matching shares under tranches two and three of the 20082009 cip awards granted on 18 march 2008 and 23 march 2009 respectively and 754340 
matching shares granted on 6 march 2013 for dominique yates the number shows the matching shares granted on 6 march 2013  
d the share option plan sop grants are vested market value share options exercise price 7435p which were granted to dominique yates on 2 september 2011 
to aid his recruitment the options will become exercisable in three equal tranches in september 2014 2015 and 2016 
at the end of the previous financial year 31 december 2012 mark dixon retained an unvested interest over a maximum of  
18 million shares under the value creation plan vcp granted in 2008 based on the share price performance to 31 march 2013  
the final measurement date under this award the award lapsed in full as disclosed in last year’s directors’ remuneration report 
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  
there were no changes in the interests of directors in the period 31 december 2013 to 31 march 2014 
chairman and nonexecutive director fees 
the fees of the chairman and nonexecutive directors are set out below no change is proposed for 2014  
 2013 2014
nonexecutive chairman £165000 £165000
basic fee for nonexecutive director £42000 £42000
additional fees 
chair of audit committee £8000 £8000
chair of remuneration committee £8000 £8000
chair of nominations committee £6000 £6000
senior independent director £6000 £6000
 
   52 regus plc annual report and accounts 2013
supporting disclosures and additional context 
percentage change in remuneration of chief executive 
the chart below shows the percentage change in remuneration of the chief executive and all employees on a per capita basis 
between the year ended 31 december 2012 and the year ended 31 december 2013  
 chief executive all employees
salary 39 44
benefits  14 87
annual bonus 179 56
performance graph and table 
the chart below shows the tsr of regus in the fiveyear period to 31 december 2013 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 all share index is also shown as it was used historically to measure the company’s tsr performance under the cip 
 
the table below provides remuneration data for the chief executive for each of the five financial years over the equivalent period  
2009 2010 2011 2012 2013
single total figure of remuneration  £628k £759k £1130k £1773k £1808k
bonus  of maximum  0 19 50 100 79
long term incentive vesting  of maximum 0 0 0 11 35
long term incentive vesting in 2011 comprises 25 of maximum in respect of the cip and 0 in respect of the vcp  
relative importance of spend on pay 
the table below shows total employee remuneration and distributions to shareholders in respect of the years ended 31 december 2013 
and 2012 and the difference between the two  
2013 2012 change
total employee remuneration £3188m £2574m 24
distributions to shareholders £340m £302m 13
 
  
0
50
100
150
200
250
300
350
400
2013 2012 2011 2010 2009 2008
regus ftse 350 excl investment trusts
total shareholder return 
remuneration report
continued strategic report governance financial statements
  wwwreguscominvestors 53
 
external nonexecutive directorships held by executive directors 
as at 31 december 2013 the executive directors did not hold any external positions for which they received fees executive directors 
are permitted to accept appointments on external boards or committees so long as these are not deemed to interfere with the business 
of the group any fees received in respect of these appointments would be retained directly by the executive director 
consideration of directors’ remuneration – remuneration committee and advisors 
the committee which met four times during the year is made up of four independent nonexecutive directors and chaired by alex 
sulkowski during the year the members of the committee were 
• alex sulkowski chair 
• lance browne 
• elmar heggen 
• florence pierre 
the committee has responsibility for determining in consultation with the chairman andor chief executive as appropriate the total 
remuneration package of the executive directors and senior managers including bonuses incentive payments and share options or 
other share awards the committee’s terms of reference are 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 was 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 2013 were £42000  
deloitte also provided unrelated tax advice to regus during 2013 the committee is comfortable that the deloitte engagement partner 
and team that provide remuneration advice to the committee do not have connections with regus that may impair their independence  
and objectivity 
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 
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 21 may 2013 in respect of the advisory vote to approve the directors’ 
remuneration report are shown in the table  
resolution 
votes for votes against 
total 
votes cast
votes 
withheld     
approval of remuneration report for year 
ending 31 december 2012 811639161 9964 2936580 036 814575741 4390898
for and on behalf of the board 
 
 
alex sulkowski 
chairman of the remuneration committee  
4 march 2014 54 regus plc annual report and accounts 2013
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 2013 
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 
florence pierre 
alex sulkowski 
biographical details for the directors are shown on page 32 
details of the directors’ interests and shareholdings are given in 
the remuneration report on pages 41 to 53 
the corporate responsibility statement corporate governance 
statement audit committee report remuneration report and 
director statements on pages 28 to 56 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 15 to 23 respectively address 
• review of the company’s business pages 15 to 18 
• trends and factors likely to affect the future development 
performance and position of the business pages 15 to 18 
• development and performance during the financial year  
pages 19 to 23 
• employee development performance and diversity page 17 
and 
• position of the business at the end of the year pages 22  
and 23 
the corporate responsibility report on page 28 includes the 
sections of the strategic report in respect of 
• environmental matters and 
• social and community issues 
the audit committee report on pages 38 to 40 includes a 
description of the principal risks and uncertainties facing  
the company 
the directors’ statements on page 56 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 £815m 2012 £851m 
the directors are pleased to recommend a final dividend of 
£236m 2012 £207m being 25 pence per share 2012  
22 pence per share the total dividend for the year will therefore 
be 36 pence per share made up of the interim dividend of  
11 pence per share paid in october 2013 2012 10 pence  
per share and assuming the final dividend is approved by 
shareholders at the forthcoming agm an additional 25 pence  
per share 2012 22 pence per share which is expected to be 
paid on 30 may 2014 to shareholders on the register at the close 
of business on 2 may 2014 
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 2013 the number of creditor days outstanding 
for the group was 31 days 2012 22 days and for the company 
was 28 days 2012 41 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 58  
to 62 
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 page 
18 as well as the group’s principal risks and uncertainties as set 
out on pages 24 to 27 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 22 of the notes to the accounts on page 83 
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 
£80500 during the year 2012 £30000 
  
directors’ report strategic report governance financial statements
  wwwreguscominvestors 55
 
capital structure 
the company’s share capital comprises 950969822 issued and 
fully paid up ordinary shares of 1p nominal value in regus plc 
2012 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 32 to 34 
at the company’s annual general meeting held on 21 may 2013 
the shareholders of the company approved a resolution giving 
authority for the company to purchase in the market up to 
94279622 ordinary shares representing approximately 10  
of the issued share capital excluding treasury shares as at  
19 april 2013 
no 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 41 to 53 
the outstanding awards and options do not carry any rights in 
relation to the control of the company 
substantial interests 
at 4 march 2014 the company has been notified of the following 
interests held in the issued share capital of the company 
number of 
ordinary shares 
 of issued 
share capital
estorn limited 323113249 3417
prudential plc 139455885 1474
odey asset management llp 56497630 603
black rock inc 43165650 456
 mark dixon indirectly owns 100 of estorn limited 
auditors 
in accordance with luxembourg law a resolution for the 
reappointment of kpmg luxembourg sà rl as auditors of  
the company is to be proposed at the forthcoming annual 
general meeting 
approval 
this report was approved by the board on 25 february 2014 
on behalf of the board 
 
 
tim regan 
company secretary 
4 march 2014 56 regus plc annual report and accounts 2013
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 
4 march 2014 
directors’ statements strategic report governance financial statements
  wwwreguscominvestors 57
 
to the shareholders of  
regus plc société anonyme 
26 boulevard royal 
l2449 luxembourg 
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 2013 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 58 to 103 
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 58 to 103 give a true and fair view of the consolidated 
financial position of regus plc société anonyme as of  
31 december 2013 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 sà rl 
cabinet de révision agréé 
thierry ravasio 
luxembourg 4 march 2014 
 
auditors’ report 58 regus plc annual report and accounts 2013
   
year ended  
31 dec 2013 
year ended 
31 dec 2012
continuing operations notes 
total  
£m 
total 
£m
revenue 3 15335 12441
cost of sales  11597 9234
gross profit centre contribution  3738 3207
selling general and administration expenses   2759 2257
research and development expenses  72 45
share of profitloss of equityaccounted investees net of tax  01 03
operating profit 5 908 902
finance expense 7 105 59
finance income 7 12 08
profit before tax for the year  815 851
tax charge  8 146 142
profit after tax for the year  669 709
   
profit attributable to   
equity shareholders of the parent  669 709
noncontrolling interests  – –
profit after tax for the year  669 709
   
earnings per ordinary share eps   
basic p 9 71 75
diluted p 9 70 75
consolidated income statement strategic report governance financial statements
  wwwreguscominvestors 59
notes 
year ended 
31 dec 2013 
£m
year ended 
31 dec 2012 
£m
profit for the year  669 709
  
other comprehensive income that is or may be reclassified to profit or loss in  
subsequent periods  
foreign currency translation differences for foreign operations net of income tax  274 145
items of other comprehensive income that is or may be reclassified to profit  
or loss in subsequent periods  274 145
  
other comprehensive income that will never be reclassified to profit or loss in  
subsequent periods  
remeasurement of defined benefit liability  02 01
items of other comprehensive income that will never be reclassified to profit  
or loss in subsequent periods  02 01
other comprehensive income for the period net of income tax  272 146
total comprehensive income for the year  397 563
  
total comprehensive income attributable to  
equity shareholders of the parent  397 563
noncontrolling interests  – –
total comprehensive income for the year  397 563
consolidated statement of comprehensive income 60 regus plc annual report and accounts 2013
 attributable to equity holders of the parent
a
 
 
share 
capital 
£m
treasury 
shares 
£m
foreign 
currency 
translation 
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 2012 95 71 485 105 153 4240 5007 – 5007
total comprehensive income for the year   
profit for the year – – – – – 709 709 – 709
other comprehensive income   
remeasurement of defined benefit liability  
net of tax – – – – – 01 01 – 01
foreign currency translation differences for 
foreign operations net of tax – – 145 – – –  145 – 145 
total other comprehensive income net – – 145 – – 01 146 –146
total comprehensive income for the year – – 145 – – 708 563 – 563
transactions with owners recorded  
directly in equity   
sharebased payments – – – – – 06 06 – 06
ordinary dividend paid note 10 – – – – – 282 282 – 282
settlement of share awards – 01 – – – 21 20 – 20
balance at 31 december 2012 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 note 24 – – – – – 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 25 – – – – – 163 163 77 240
acquisition of noncontrolling interest note 25 – – – – – 77 77 77 –
settlement of share awards – 29 – – – 34 05 – 05
balance at 31 december 2013 95 41 66 105 153 4764 5142 – 5142
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 2013 treasury shares represent 5257380 2012 8982139 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 nil shares were 
purchased in the open market and 3724759 treasury shares held by the group were utilised to satisfy the exercise of share awards by 
employees as at 4 march 2014 5257380 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 statement of changes in equity strategic report governance financial statements
  wwwreguscominvestors 61
notes 
as at 
31 dec 2013 
£m
as at 
31 dec 2012 
£m
noncurrent assets  
goodwill 11 4387 3170
other intangible assets 12 530 469
property plant and equipment 13 6087 4375
deferred tax assets 8 334 339
other longterm receivables 14 375 357
investments in joint ventures  19 13 17
total noncurrent assets  11726 8727
current assets  
trade and other receivables 15 3769 2908
corporation tax receivable 8 81 57
cash and cash equivalents 21 847 1323
total current assets  4697 4288
total assets  16423 13015
current liabilities  
trade and other payables incl customer deposits 16 5708 4477
deferred income  1798 1511
corporation tax payable 8 62 68
obligations under finance leases 17 – 06
bank and other loans 17 12 48
provisions  18 08 15
total current liabilities  7588 6125
net current liabilities  2891 1837
total assets less current liabilities  8835 6890
noncurrent liabilities  
other payables 16 2207 1474
obligations under finance leases 17 01 01
bank and other loans 17 1406 68
deferred tax liability 8 16 13
provisions  18 49 46
provision for deficit on joint ventures 19 12 12
retirement benefit obligations 24 02 02
total noncurrent liabilities  3693 1616
total liabilities   11281 7741
total assets less liabilities  5142 5274
total equity  
issued share capital 20 95 95
treasury shares  41 70
foreign currency translation reserve  66 340
revaluation reserve  105 105
other reserves  153 153
retained earnings  4764 4651
total shareholders’ equity  5142 5274
noncontrolling interests  – –
total equity  5142 5274
total equity and liabilities  16423 13015
approved by the board on 4 march 2014 
mark dixon   dominique yates 
chief executive officer  chief financial officer 
consolidated balance sheet 62 regus plc annual report and accounts 2013
notes 
year ended  
31 dec 2013  
£m 
year ended 
31 dec 2012 
£m
profit before tax for the year  815 851
adjustments for   
net finance expense 7 93 51
share of posttax profitloss of joint ventures 19 01 03
depreciation charge 5 13 878 636
gainloss on disposal of property plant and equipment  09 01
amortisation of intangible assets 5 12 97 55
gainloss on disposal of intangible assets  – 01
increasedecrease in provisions 18 40 51
sharebased payments  27 06
other noncash movements  23 38
operating cash flows before movements in working capital  1901 1515
decreaseincrease in trade and other receivables  744 249
decreaseincrease in trade and other payables  1385 713
cash generated from operations  2542 1979
interest paid  67 31
tax paid  171 139
net cash inflow from operating activities  2304 1809
investing activities   
purchase of subsidiary undertakings net of cash acquired 25 930 433
dividends received from joint ventures 19 08 08
purchase of joint ventures  04 –
proceeds on sale of property plant and equipment  – 15
purchase of property plant and equipment 13 2489 1692
purchase of intangible assets 12 156 68
interest received 7 12 07
net cash outflow from investing activities  3559 2163
financing activities   
net proceeds from issue of loans  1327 64
repayment of loans  24 19
repayment of principal under finance leases  05 14
acquisitions of noncontrolling interests 25 163 –
purchase of shares  23 –
settlement of share awards  11 20
payment of ordinary dividend 10 311 282
net cash inflowoutflow from financing activities  790 271
net decreaseincrease in cash and cash equivalents  465 625
cash and cash equivalents at beginning of year  1323 1975
effect of exchange rate fluctuations on cash held  11 27
cash and cash equivalents at end of year 21 847 1323
consolidated statement of cash ﬂ ows strategic report governance financial statements
  wwwreguscominvestors 63
1 authorisation of financial statements 
the group and company financial statements for the year ended 31 december 2013 were authorised for issue by the board of 
directors on 4 march 2014 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 30 and information on other related party relationships of the group is provided in note 29 
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 104 and 105 
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 2013 did not have a material effect on the group financial 
statements unless otherwise indicated 
ias 1   amendments to ias 1 – presentation of items of other comprehensive income 
ias 12  amendment to ias 12 – deferred tax accounting for investment property at fair value 
ias 19  ias 19 revised – employee benefits 
ifrs 1  amendments to ifrs 1 – government loans 
ifrs 1  amendment to ifrs 1 – exemption for severe hyperinflation and removal of fixed dates 
ifrs 7  amendments to ifrs 7 – offsetting financial assets and financial liabilities 
ifrs 13  fair value measurement 
ifric 20  stripping costs in the production of a surface mine 
various  annual improvements to ifrss 2009 – 2011 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 31 
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  
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 58 to 103 
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 15 to 18 as well as the group’s principal risks and 
uncertainties as set out on pages 24 to 27 
further details on the going concern basis of preparation can be found in note 22 to the notes to the accounts on page 84 
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  
  
notes to the accounts 64 regus plc annual report and accounts 2013
2 accounting policies continued 
joint ventures include jointly controlled entities that are those entities over whose activities the group has joint control established by 
contractual agreement 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  
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 2014 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 unless otherwise indicated 
ias 27 separate financial statements revised and subsequent amendments 1 january 2014
ias 28 investments in associates and joint ventures revised 1 january 2014
ias 32 amendments to ias 32 – offsetting financial assets and financial liabilities 1 january 2014
ias 36 amendments to ias 36 – recoverable amount disclosures for nonfinancial assets 1 january 2014
ias 39 amendments to ias 39 – novation of derivatives and continuation of hedge accounting 1 january 2014
ifrs 9 financial instruments classification and measurement and subsequent amendments 1 january 2017
ifrs 10 consolidated financial statements and subsequent amendments 1 january 2014
ifrs 11 joint arrangements and subsequent amendments 1 january 2014
ifrs 12 disclosure of interests in other entities and subsequent amendments 1 january 2014
ifric 21 levies 1 january 2014
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 has the power directly or indirectly to govern the 
financial and operating policies of an entity so as to obtain benefits from its activities in assessing control potential voting rights  
that are currently exercisable or convertible are taken into account 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 2013 and updated at 31 december 2013 
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 cash
generating 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 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 65
 
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 the 
requirements of ifrs 
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 
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 
   66 regus plc annual report and accounts 2013
2 accounting policies continued 
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 
the useful life of certain plant property and equipment were revised in 2012 
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 
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 of 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 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 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 67
 
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  
the group also operates a value creation plan which awards entitlements to certain employees and directors of the group these 
entitlements are convertible into options over ordinary shares subject to the group’s share price reaching certain targets  
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 the date of the award of the entitlements and spread over the period during which the entitlements are 
convertible into ordinary shares 
the fair value of the entitlements is 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 
   68 regus plc annual report and accounts 2013
2 accounting policies continued 
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 have been classified separately as other 
finance costs in the income statement 
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 expire 
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 overseas 
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 22 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 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 69
 
foreign currency translation rates 
at 31 december annual average 
2013 2012 2013 2012
us dollar 165 162 157 159
euro 120 123 118 123
japanese yen 174 140 153 128
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 2012 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 
 
2013 
£m
2012  
£m 
2013  
£m 
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013  
£m 
2012  
£m 
2013 
£m
2012 
£m
revenues from  
external customers 6397 5339 3379 3012 2251 1959 3291 2118 17 13 15335 12441
revenues from  
internal customers 03 02 08 03 03 – 13 16 – – 27 21
segment revenues 6400 5341 3387 3015 2254 1959 3304 2134 17 13 15362 12462
gross profit  
centre contribution 1573 1505 806 768 576 555 797 366 16 12 3768 3206
reportable  
segment profit 713 722 297 262 279 317 396 124 53 19 1632 1406
share of profit of  
joint ventures – – 12 09 – – 11 12 – – 01 03
finance expense 06 03 01 – 05 05 22 16 – – 34 24
finance income – – 02 01 – 03 – 01 – – 02 05
depreciation and 
amortisation 458 332 148 120 131 103 171 113 40 19 948 687
taxation 
incomecharge 25 11 51 91 37 63 24 26 09 25 146 142
assets 9443 6837 3444 2962 2113 2013 5085 3167 19 17 20104 14996
liabilities 6322 3991 4198 3345 1941 1787 5309 3066 06 06 17776 12195
net assetsliabilities 3121 2846 754 383 172 226 224 101 13 11 2328 2801
noncurrent  
asset additions 1728 990 296 240 330 286 149 114 – – 2503 1630
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  70 regus plc annual report and accounts 2013
3 segmental analysis – statutory basis continued 
    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
 
    2012
£m revenue 
gross profit 
centre 
contribution
operating 
profit
share of jv 
loss
finance 
expense
finance 
income 
depreciation 
and 
amortisation 
profit before 
tax
reportable segment 
results 12462 3206 1406 03 24 05 687 1384
exclude internal revenue 21 21 – – – – – –
corporate overheads – 22 500 – 22 03 04 519
foreign exchange gains  
and losses – – 01 – 13 – – 14
published group total 12441 3207 905 03 59 08 691 851
 
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 excluding 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
 
2012
£m assets liabilities 
net assets 
liabilities
reportable segment results 14996 12195 2801
exclude segmental intercompany amounts 3246 4657 1411
corporate overheads assets and liabilities excluding amounts due tofrom reportable segments  
cash 730 – 730
deferred taxation 220 – 220
bank and other loans – – –
other 315 203 112
published group total 13015 7741 5274
 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 71
 
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 
2013 2012 
£m 
external 
revenue
noncurrent    
assets
a
 
external 
revenue
noncurrent   
assets
a
country of domicile – luxembourg 37 15   30 06  
united states of america 4926 4819   4006 3738  
united kingdom 3295 2541   2130 1636  
all other countries 7077 4017   6275 3008  
 15335 11392   12441 8388  
a excluding deferred tax assets 
5 operating profit 
operating profit has been arrived at after chargingcrediting 
notes 
2013 
£m
2012 
£m
depreciation on property plant and equipment  
owned assets 13 871 627
finance leases 13 07 09
amortisation of intangibles 12 97 55
provision for bad debts   11 22
loss on disposal of property plant and equipment   09 01
loss on disposal of intangibles   – 01
exchange gainslosses recognised in the income statement  01 04
rents payable in respect of operating leases  
property   5276 4306
contingent rents paid   248 155
equipment   21 15
amortisation of acquisition fair value adjustments  52 41
staff costs 6 3161 2574
 
 
2013 
£m
2012 
£m
fees payable to the group’s auditor for the audit of the group accounts 04 03
fees payable to the group’s auditor and its associates for other services 
the audit of the company’s subsidiaries pursuant to legislation  13 13
other services pursuant to legislation 
tax services – –
other services 01 –
 
   72 regus plc annual report and accounts 2013
6 staff costs  
 
2013  
£m 
2012 
£m
the aggregate payroll costs were as follows  
wages and salaries 2653 2162
social security 443 375
pension costs 38 31
sharebased payments 27 06
 3161 2574
 
 
2013  
average  
full time 
equivalents 
2012 
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 5582 4478
sales  marketing staff 787 1054
finance staff 856 827
other staff 1150 779
 8375 7138
  
americas 3110 2701
emea 1724 1668
asia pacific 1255 991
united kingdom 1151 881
corporate functions 1135 897
 8375 7138
details of directors’ emoluments and interests are given on pages 41 to 53 in the remuneration report 
7 net finance expense 
 
2013  
£m 
2012 
£m
interest payable and similar charges on bank loans  34 09
interest payable and similar charges on finance leases – 01
total interest expense 34 10
other finance costs 51 35
unwinding of discount rates 20 14
total finance expense 105 59
total interest income 12 07
unwinding of discount rates – 01
total finance income 12 08
net finance expense 93 51
 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 73
 
8 taxation 
a analysis of charge in the year 
 
2013 
£m
2012 
£m
current taxation 
corporate income tax 174 199
previously unrecognised tax losses and temporary differences 12 44 
overunder provision in respect of prior years 24 02
total current taxation 138 157
deferred taxation 
origination and reversal of temporary differences 78 67
previously unrecognised tax losses and temporary differences 71 90
under provision in respect of prior years 01 08
total deferred taxation 08 15
tax charge on profit 146 142
b reconciliation of taxation charge 
2013 2012 
£m  £m 
profit before tax 815 851
tax on profit at 2922 2012 288 238 292 245 288
tax effects of  
expenses not deductible for tax purposes 33 40 86 101
items not chargeable for tax purposes 194 238 196 230
recognition of previously unrecognised deferred tax assets   83 102  134 157
movements in temporary differences in the year not recognised in 
deferred tax 176 216 156 183
other movements in temporary differences – –  03 04
adjustment to tax charge in respect of previous years  23 28  10 12
differences in tax rates on overseas earnings  01 01  22 26
 146 179 142 167
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 
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 expiration dates 
 
2013 
£m
2012 
£m
2013 – 10
2014 13 13
2015 07 08
2016 37 32
2017 60 106
2018 141 39
2019 18 16
2020 297 339
2021 and later 605 497
 1178 1060
available indefinitely  2057 1522
tax losses available to carry forward  3235 2582
amount of tax losses recognised in the deferred tax asset  1181 1206
total tax losses available to carry forward  4416 3788
 
   74 regus plc annual report and accounts 2013
8 taxation continued 
the following deferred tax assets have not been recognised due to uncertainties over recoverability 
 
2013  
£m 
2012 
£m
intangibles 360 418
accelerated capital allowances  148  101
tax losses  870  736
rent 93 55
shortterm timing differences  73  90
  1544  1400
estimates relating to deferred tax assets including assumptions about future profitability are reevaluated at the end of each  
reporting period 
d corporation tax 
 
2013  
£m 
2012 
£m
corporation tax payable 62 68
corporation tax receivable 81 57
e deferred taxation 
the movement in deferred tax is analysed below 
 
intangibles 
£m
property 
plant and 
equipment 
£m
tax losses 
£m
rent  
£m 
short term 
temporary 
differences  
£m 
total 
£m
deferred tax asset   
at 1 january 2012 338 245 280 230  95  322
current year movement 44 16 78 01 05 24
prior year movement – 08 02 02 – 08
direct reserves movement –––– – –
transfers 0106–01 01 07
exchange movement 24 09 02 13 10 06
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 31 december 2013 335 132 364 271 98 334
deferred tax liability   
at 1 january 2012 03 – – – 02 05
current year movement 01 01 – – 01 01
prior year movement –––– – –
transfers 0106–01 01 07
exchange movement –––– – –
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 31 december 2013 02 06 02 01 11 16
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 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 75
 
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 £1508m  
2012 £1723m the only tax that would arise on these reserves would be noncreditable withholding tax 
9 earnings per ordinary share basic and diluted 
 2013 2012
profit attributable to equity shareholders of the parent £m 669 709
weighted average number of shares outstanding during the year 943775413 941921816
average market price of one share during the year 16956p 10012p
weighted average number of shares under option during the year 21184505 10778358
exercise price for shares under option during the year 7867p 6856p
 
profit earnings per share 
2013 
£m
2012  
£m 
2013 
pence
2012 
pence
basic and diluted profit for the year attributable to shareholders and  
basic earnings per share 669 709 71 75
diluted earnings per share  70 75
weighted average number of shares for basic eps number  943775413 941921816
weighted average number of shares under option during the year  21184505 10778358
weighted average number of shares that would have been issued at 
average market price  5639033 8037963
weighted average number of awards under the cip and ltip  3014273 1207103
weighted average number of shares for diluted eps number  962335158 945869314
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 
 2013 2012
dividends per ordinary share proposed  25p 22p 
interim dividends per ordinary share declared and paid during the year  11p 10p
dividends of £311m were paid during the year 2012 £282m the company has proposed to shareholders that a final dividend of 
25p per share will be paid 2012 22p subject to shareholder approval it is expected that the dividend will be paid on 30 may 2014 
   76 regus plc annual report and accounts 2013
11 goodwill 
 £m
cost 
at 1 january 2012 2854
recognised on acquisition of subsidiaries 393
exchange differences 77
at 1 january 2013 3170
recognised on acquisition of subsidiaries 1316
exchange differences 99
at 31 december 2013 4387
net book value 
at 1 january 2013 3170
at 31 december 2013 4387
cash generating 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 
 
2013  
£m 
2012 
£m
carrying amount of goodwill included within the americas business segment 2030 1853
carrying amount of goodwill included within the emea business segment 437 103
carrying amount of goodwill included within the asia pacific business segment 230 251
carrying amount of goodwill included within the uk business segment 1690 963
 4387 3170
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 801 of the total the remaining 199 of the carrying value is allocated to a further 35 countries 35 cash 
generating units the goodwill and indefinite life intangibles allocated to the usa and the uk cash generating units are set out below 
goodwill 
£m
intangible  
assets  
£m 
2013  
£m 
2012 
£m
usa 1824 – 1824 1588
uk 1690 112 1802 1075
other cash generating units 873 – 873 619
 4387 112 4499 3282
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 recoverable amount of each of the cgus above has been determined based on their value in use calculated as the present value 
of future cash flows attributable to the unit as follows 
 
2013  
£m 
2012 
£m
usa 4899 4539
uk 2666 2185
other cash generating units 7679 5339
 15244 12063
 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 77
 
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 believe 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 2012 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 wacc decreased marginally to 136 in 2013 2012 140 
the market risk adjustment has been set between 123 and 186 2012 160 to 200 
the amount by which the value in use exceeds the carrying amount of the cgu’s 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 25 with an average centre contribution of 23 over  
the next five years revenue and costs grow at 3 per annum from 2013 maintaining a terminal 2018 centre gross margin of 23 
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 17 201219 
the uk model forecasts a 2014 centre contribution of 23 with an average centre contribution of 22 over the next five years 
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 14 201215 
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 22 2012 28 for the us cgu and 22 2012 28 for the uk cgu 
there is no goodwill relating to the group’s joint ventures 
   78 regus plc annual report and accounts 2013
12 other intangible assets 
brand 
£m
customer  
lists  
£m 
software  
£m 
total 
£m
cost   
at 1 january 2012 538 226 199  963 
additions at cost – 02 66 68
acquisition of subsidiaries – 11 – 11
disposals – – – –
exchange rate movements 17 05 05 27
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 31 december 2013 516 242 407 1165
amortisation   
at 1 january 2012 158 196 150  504
charge for the year 21 13 21 55
disposals – – – –
exchange rate movements 06 03 04 13
at 1 january 2013 173 206 167 546
charge for year 21 17 59 97
disposals – – – –
exchange rate movements 04 04 – 08
at 31 december 2013 190 219 226 635
   
net book value   
at 1 january 2012 380 30 49 459 
at 31 december 2012 348 28 93 469
at 31 december 2013 326 23 181 530
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 11 years 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 79
 
13 property plant and equipment  
land and 
buildings 
£m
furniture  
fittings and  
motor vehicles  
£m 
computer 
hardware 
£m
total 
£m
cost  
at 1 january 2012 56 7874  470 8400 
additions 25 1552 115 1692
acquisition of subsidiaries – 120 04 124
disposals – 170 02 172
exchange rate movements – 280 42 322
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 31 december 2013 81 11270 597 11948
accumulated depreciation  
at 1 january 2012 03 4689 373 5065
charge for the year 03 574 59 636
disposals – 153 02 155
exchange rate movements – 176 23 199
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
balance at 31 december 2013 09 5451 401 5861
  
net book value  
at 1 january 2012 53 3185 97 3335
at 31 december 2012 75 4162 138 4375
at 31 december 2013 72 5819 196 6087
additions include £nil in respect of assets acquired under finance leases 2012 £nil  
the net book value of furniture fittings and motor vehicles includes amounts held under finance leases as follows 
 
2013 
£m
2012 
£m
cost 201 227
accumulated depreciation 170 183
net book value 31 44
 
   80 regus plc annual report and accounts 2013
14 other longterm receivables 
 
2013  
£m 
2012 
£m
deposits held by landlords against rent obligations 301 309
amounts owed by joint ventures 31 28
prepayments and accrued income 43 20
 375 357
15 trade and other receivables  
 
2013  
£m 
2012 
£m
trade receivables 1407 1154
amounts owed by joint ventures  29 29
other receivables 431 270
deposits held by landlords against rent obligations 228 207
prepayments and accrued income 1307 927
vat recoverable 367 321
 3769 2908
16 trade and other payables incl customer deposits 
 
2013  
£m 
2012 
£m
trade payables 741 461
vat payable 371 328
other tax and social security 92 99
customer deposits 2395 1986
deferred landlord contributions 259 198
amounts owed to joint ventures 07 06
rent accruals 741 432
other accruals 907 754
other payables 195 213
total current 5708 4477
 
 
2013  
£m 
2012 
£m
deferred landlord contributions 1169 760
rent accruals 1012 679
other payables 26 35
total noncurrent 2207 1474
 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 81
 
17 borrowings 
the group’s total loan and borrowing position at 31 december 2013 and at 31 december 2012 had the following maturity profiles 
bank and other loans 
 
2013 
£m
2012 
£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 16 21
in more than two years but not more than five years 1390 47
in more than five years  – –
total noncurrent 1406 68
total current 12 48
total bank and other loans 1418 116
obligations under finance leases 
the maturity of the group’s finance obligations is as follows 
 
2013 
£m
2012 
£m
amounts payable 
within one year or on demand – 06
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 07
less finance charges allocated to future periods – –
present value of future minimum lease payments – 07
total current – 06
total noncurrent 01 01
 01 07
18 provisions 
 2013 2012
 
onerous 
leases and 
closures  
£m 
restructuring  
£m 
other 
£m
total 
£m
onerous 
leases and 
closures 
£m
restructuring  
£m 
other 
£m
total 
£m
at 1 january 53 – 08 61 85 09 18 112
acquired in the period 36 – – 36 –– ––
provided in the period 07 – 05 12 09 – 03 12
utilised in the period 08 – – 08 18 06 11 35
provisions released 44 – – 44 22 02 02 26
exchange differences – – – – 01 01 – 02
at 31 december 44 – 13 57 53 – 08 61
analysed between    
current 02 – 06 08 09 – 06 15
noncurrent 42 – 07 49 44 – 02 46
at 31 december 44 – 13 57 53 – 08 61
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 2022 
restructuring  
there is no restructuring provision to be utilised during the next financial year 2012 nil 
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  82 regus plc annual report and accounts 2013
19 investments in joint ventures  
investments in 
joint ventures  
£m 
provision for 
deficit in  
joint ventures  
£m 
total 
£m
at 1 january 2012 26  12 14 
additions – – – 
dividends paid  08 – 08
share of loss 03 – 03
other 02 – 02
exchange rate movements – – –
at 1 january 2013 17 12 05
additions 04 – 04
dividends paid  08 – 08
share of profit 01 – 01
other 01 – 01
exchange rate movements – – –
at 31 december 2013 13 12 01
the results of the joint ventures below are the full results of the joint ventures and do not represent the effective share 
 
2013  
£m 
2012 
£m
income statement  
revenue 263 254
expenses 249 246
profit before tax for the year 14 08
tax charge 03 04
profit after tax for the year 11 04
net assetsliabilities  
fixed assets 65 72
current assets 171 152
current liabilities 196 179
noncurrent liabilities 73 71
net assets 33 26
20 share capital 
ordinary equity share capital 
2013 2012
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 2013 5257380 2012 8982139 shares were held as treasury shares during the year ended 31 december 
2013 regus plc repurchased nil 2012 nil of its own shares in the open market and utilised 3724759 2012 88767 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 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 83
 
21 analysis of financial assets 
at 
1 jan 2013 
£m
cash flow 
£m
noncash 
changes  
£m 
exchange 
movements 
£m
at 
31 dec 2013 
£m
cash and cash equivalents 1323 465 – 11 847
gross cash 1323 465 – 11 847
debt due within one year 48 39 – 03 12
debt due after one year 68 1342 – 04 1406
finance leases due within one year 06 05 – 01 –
finance leases due after one year 01 – – – 01
 1231298– 02 1419
net financial assetsliabilities 1200 1763 – 09 572
cash and cash equivalent balances held by the group that are not available for use amounted to £214m at 31 december 2013  
2012 £647m of this balance £190m 2012 £199m is pledged as security against outstanding bank guarantees and a further 
£24m 2012 £448m is pledged against various other commitments of the group the 2012 balance included £400m held in escrow 
against the acquisition of the mwb business exchange plc 
noncash changes comprise the amortisation of the debt issue costs new finance leases entered into and movements in debt maturity 
22 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 
going concern 
the strategic report on pages 1 to 31 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 19 to 23 within the strategic report 
reviews the trading performance financial position and cash flows of the group during the year ended 31 december 2013 the  
group made a significant investment in growth and the group’s net cash position declined by £1772m to a net debt position of 
£572m as at 31 december 2013 the investment in growth is funded by a combination of cash flow generated from the group’s 
mature business centres and bank debt in 2013 the group extended the revolving credit facility provided by a group of relationship 
banks from £200m to £320m with a final maturity in 2017 
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 and requirement for customer deposits and payments in advance on workstation contracts which 
contribute the majority of the group’s revenue 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 
   84 regus plc annual report and accounts 2013
22 financial instruments and financial risk management continued 
the maximum exposure to credit risk for trade receivables at the reporting date analysed by geographic region is summarised below 
 
2013  
£m 
2012 
£m
americas 267 262
emea 495 422
asia pacific 233 217
uk 412 253
 1407 1154
all of the group’s trade receivables relate to customers purchasing workplace solutions and no individual customer has a material 
balance owing as a trade receivable  
the ageing of trade receivables at 31 december was 
gross 
2013 
£m
provision  
2013  
£m 
gross  
2012  
£m 
provision 
2012 
£m
not overdue 1039 – 820 –
past due 0 – 30 days 253 – 229 –
past due 31 – 60 days 74 – 53 01
more than 60 days 111 70 110 57
 1477 70 1212 58
at the year end 31 december 2013 the group maintained a provision of £70m against potential bad debts 2012 £58m arising from 
trade receivables the group had provided £11m 2012 £22m in the year and utilised £05m 2012 £82m customer deposits of 
£2395m 2012 £1986m 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 £633m 2012 £676m in addition to cash and liquid investments the group had 
£1679m available and undrawn under its committed bank facilities the directors consider the group has adequate liquidity to meet 
daytoday requirements 
in september 2013 the group extended its revolving credit facility from £200m to £320m and extended the final maturity date to 
september 2017 
although the group has net current liabilities of £2891m 2012 £1837m 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 £2395m 2012 £1986m 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 £1093m at 31 december 
2013 2012 net current assets £326m  
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 as well as 
investment in financial assets the surplus cash balances are invested short term and at the end of 2013 no cash was invested for a 
period exceeding three months  
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 85
 
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 
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 2013 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 £02m 2012 increase of £13m 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 £33m for the year ended 31 december 2013 2012 £28m 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 2013 2012 increase of £07m 
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 £126m for the year ended 31 december 2013 2012 £94m 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 £04m for the year ended 31 december 2013 2012 £01m 
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 33 to 37 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 41 to 53 in addition the group operates various share option plans for key management and other senior employees 
at the 2008 annual general meeting shareholders approved a resolution for the group to repurchase up to 10 of its issued share 
capital in the market in june 2007 the group commenced a share buyback programme to meet both the need to issue shares under 
the group’s share option programme and more generally as a means of returning cash to shareholders 
in the year ended 31 december 2013 regus plc purchased 1464685 2012 1765783 of its own shares in the open market and 
utilised these to satisfy employee share awards regus plc did not repurchase any of its own shares in the open market to hold  
as treasury shares however 3724759 treasury shares held by the group were utilised to satisfy the exercise of share awards by 
employees as at 4 march 2014 5257380 shares were held as treasury shares 
the company declared an interim dividend of 11p per share 2012 10p during the year ended 31 december 2013 and proposed a 
final dividend of 25p per share 2012 22p per share a 10 increase on the 2012 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 modest net debt position at the end of 2013 
and  £1679m of committed undrawn bank facilities   86 regus plc annual report and accounts 2013
22 financial instruments and financial risk management continued 
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 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 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   
foreign exchange contracts   
– outflow –  – – – – – –
– inflow –  – – – – – –
interest rate swaps   
– outflow –  01 – – – – –
– inflow –  – – – – – –
financial liabilities 6186 6188 4755 42 1391 –
as at 31 december 2012 
 
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 04   1323 1323 1323 – – –
trade and other receivables –   2318 2375 2040 154 181 –
financial assets
b
 –   3641 3698 3363 154 181 –
   
nonderivative financial liabilities
a
     
finance lease liabilities 33   07 07 06 01 – –
bank loans 86   70 74 04 22 48 –
other loans  68   46 46 46 – – –
customer deposits –   1986 1986 1986 – – –
trade and other payables  –   1878 1878 1843 35 – –
   
derivative financial liabilities   
foreign exchange contracts   
– outflow –  – 164 164 – – –
– inflow –  – 164 164 – – –
financial liabilities –   3987 3991 3885 58 48 –
a all financial instruments are classified as variable rate instruments 
b financial assets are all held at amortised cost 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 87
 
fair value disclosures 
the fair values together with the carrying amounts shown in the balance sheet are as follows 
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 – 847 – 847
trade and other receivables 2790 – – 2790 – 2790 – 2790
finance lease liabilities – 01 – 01 – 01 – 01
bank loans – 1406 – 1406 – 1406 – 1406
other loans  – 12 – 12 – 12 – 12
customer deposits – 2395 – 2395 – 2395 – 2395
trade and other payables – 2371 – 2371 – 2371 – 2371
foreign exchange contracts 
and interest rate swaps – 01 – 01 – 01 – 01
 3637 6186 2549 – 2549 – 2549
unrecognised gain   –
 
31 december 2012 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 1323 – – 1323 – 1323 – 1323
trade and other receivables 2318 – – 2318 – 2318 – 2318
finance lease liabilities – 07 – 07 – 07 – 07
bank loans – 70 – 70 – 70 – 70
other loans  – 46 – 46 – 46 – 46
customer deposits – 1986 – 1986 – 1986 – 1986
trade and other payables – 1878 – 1878 1878 – 1878
foreign exchange contracts 
and interest rate swaps – ––– –– – –
 3641 3987 346–346 –346
unrecognised gain   –
during the years ended 31 december 2013 and 31 december 2012 there were no transfers between level 1 and 2 fair value 
measurements 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 
   88 regus plc annual report and accounts 2013
22 financial instruments and financial risk management continued 
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 broker quotes 
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 2013 
 
2013  
eur m 
2012 
eur m
foreign exchange contracts – 201
committed bank facilities 
 
principal  
£m  
available 
£m
at 31 december 2013 4150 1854
at 31 december 2012 2900  2005 
in september 2013 the group amended and extended its revolving credit facility from £200m to £320m and final maturity to september 
2017 in addition the group amended and extended its bank guarantee and letter of credit facility to a revised total of £95m and 
aligned the conditions and the maturity with the £320m facility 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 
23 sharebased payment 
there are three 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 
reconciliation of outstanding share options 
2013  2012
number of 
share options
weighted 
average 
exercise price 
per share 
number of  
share options 
weighted 
average 
exercise price 
per share
at 1 january 27211499 8953 20731906 9622 
granted during the year 10514000 17694 11269000 8495
lapsed during the year 7856529 9686 4789407 10774
exercised during the year 3027850 5781 – –
outstanding at 31 december 26841120 12520 27211499 8953
exercisable at 31 december 775333 8629  3170139  5700 
 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 89
 
date of grant 
numbers  
granted 
weighted 
average 
exercise price 
per share lapsed exercised at 31 dec 2013 exercisable from expiry date
23072004 4106981  5700 – 3905753 201228  23072007 23072014
18052010 3986000 10050344266154790488549 2303201323032020
28062010 617961 7500542174414971638 2806201328062020
01092010 160646 6910146728 –13918 0109201301092020
01042011 2100000 11490654402 – 1445598 0104201401042021
30062011 9867539 109504517225 – 5350314 3006201430062021
31082011 300000 6700 – – 300000 3108201431082021
02092011 1000000 743592667 – 907333 0109201402092021
06102011 300000 6410300000 – – 0110201401102021
30062012 11189000 84953161458 –8027542 1306201513062022
12062013 7741000 15560559000 –7182000 1206201612062023
18112013 grant 1 1053000 19190 – – 1053000 18112016 18112023
18112013 grant 2 600000 19190 – – 600000 18112016 18112023
18122013 grant 1 200000 19500 – – 200000 18122016 18122023
18122013 grant 2 1000000 19500 – – 1000000 18122016 18122023
total 44222127 1118513416315396469226841120 
280000 options awarded during the year under the regus share option plan france are included in the above table 2012 230000 479620 lapsed during the 
year 2012 261560 and 3325 were exercised during the year 2012 nil 
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 
may june and august 2010 share option plan 
the options awarded in may june and september 2010 contain the following performance conditions 50 of the options will be 
eligible to vest if 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 the remaining 50 of the options will be eligible to vest subject to the eps conditions  
in the table below 
vesting scale 
eps target 
ye 2012
25 15p
50 16p
75 17p
100 18p
once performance conditions are satisfied those options that are eligible to vest will vest as follows 
proportion 
to vest
2013 13
2014 13
2015 13
 
   90 regus plc annual report and accounts 2013
23 sharebased payment continued 
april 2011 grant1 share option plan 
the performance targets for the options awarded in april 2011 grant 1 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
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 and october 2011 share option plan 
the options awarded in august and october 2011 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
2014 13
2015 13
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  
these 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 these options that 
are eligible to vest will vest as follows 
vesting scale pregrowth profit
good £105m
better £120m
best £135m
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
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 91
 
july 2013 share option plan 
the options awarded in june 2013 are subject to group performance targets based on group operating profit for the year ending  
31 december 2013 such that the number of shares vesting will be determined as follows 
vesting scale 
group operating 
profit
good £105m
better £115m
best £125m
once performance conditions are satisfied 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 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 
december 2013 grant 1 share option plan 
the options awarded in december 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
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  
predetermined 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 
   92 regus plc annual report and accounts 2013
23 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 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 
 
december 
2013  
grant 2  
december 
2013 
grant 1 
november 
2013 
grant 2
november 
2013 
grant 1
june 
2013
june 
2012
october  
2011 
september  
2011 
august 
2011
share price on 
grant date 19500p 19500p 19190p 19190p 15800p 8855p 6830p 7250p 7590p
exercise price 19500p 19500p 19190p 19190p 15560p 8495p 6410p 7435p 6700p
expected 
volatility 
3291 3291 3269 3269 4031–
4898
4787–
5274
5326–
4655 
5259–
4608 
5261–
4613
number of 
simulations – – – – 30000 30000 30000 30000 30000
number of 
companies – – – – – – – – –
option life 5 – 8 years 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 146 146 146 146 203 327 388 366 349
fair value of 
option at time  
of grant 
5241p – 
6595p 
4056p – 
5241p 4573p
3963p – 
5124p
3921p – 
5839p
2988p – 
3112p
2304p – 
2243p 
2289p – 
2271p 
2732p – 
2701p
risk free  
interest rate 
157 – 
230 
085 – 
157 
122 085 – 
157
067 – 
120
065 – 
111
115 – 
167 
116 – 
175 
129 – 
191
 
 june 2011 april 2011 september 2010 june 2010 march 2010
  eps tsr eps tsr eps tsr
share price on grant date 11070p 11630p 7060p 7060p 7320p 7320p 9400p 9400p
exercise price 10950p 11490p 6910p 6910p 7500p 7500p 10050p 10050p
expected volatility 5155–
4499 
5123 – 
4554
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 
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 235 224 340 340 328 328 255 255
fair value of option at time  
of grant 
3941p – 
4096p 
4219p – 
4480p
2280p – 
2360p
2151p – 
2151p
3520p – 
4270p
1240p – 
1740p 
4549p – 
6177p 
1950p – 
2630p
risk free interest rate 181 – 
257 
233 –
304
151 –
217
151 –
217
276 – 
305
276 – 
305 
307 – 
338 
307 – 
338
 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 93
 
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 
 2013 2012
 
number of 
awards
number of 
awards
at 1 january 14742932 16597482
cip awards granted during the year 1521470 –
ltip awards granted during the year – –
lapsed during the year 4725549 –
exercised during the year 2161604 1854550
outstanding at 31 december 9377249 14742932
exercisable at 31 december – 4447433
the weighted average share price at the date of exercise for share awards and options exercised during the year ended 31 december 
2013 was 17022p 2012 11466p 
plan date of grant numbers granted lapsed exercised 
at 31 dec 
2013 release date
ltip 031120053723235 10928192605993 24423 03112008
ltip 2303201029004722304207 596265 – 23032013
 6623707 33970263202258 24423 
  of the awards of investments and matching shares under the ltip on 23 march 2010 1028539 were conditional share awards and 1871933 were nil  
cost options 
 
plan date of grant numbers granted lapsed exercised 
at 31 dec 
2013 release date
cip investment shares 18032008 1557391 86956 1470435 – 18032011
cip matching shares 18032008 5922916 2367825 395012 3160079  see below
cip investment shares 23032009 2212734 172835 2039899 – 23032012
cip matching shares 23032009 8614284 3359096 583911 4671277  see below
cip investment shares 06032013 304294 – –  304294 06032016
cip matching shares 06032013 1217176 – –  1217176 06032016
 19828795 59867124489257 9352826 
 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 
   94 regus plc annual report and accounts 2013
23 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 
06032013 23032010 23032009 18032008
cip ltip
a
 cip
b
 cip
b
share price on grant date 14350p 10810p  6550p  8050p 
exercise price nil nil  nil  nil 
number of simulations 250000 250000  200000   200000  
number of companies 32 32  32   36  
award life 3 years 3 years  3 years  3 years 
expected dividend 223 222  272  119 
fair value of award at time of grant 8311p – 
13421p 4700p  4797p  6121p 
risk free interest rate 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 nil cost 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 are currently anticipated 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 period between 2006 and 2008 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 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 95
 
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 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 vests in march 2013 the second vests 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
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 three four or five year performance period 
2013 cip investment and matching grants 
the total number of awards made in 2013 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 
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 three four or five year performance period 
   96 regus plc annual report and accounts 2013
23 sharebased payment continued 
plan 3 regus plc value creation plan 
the vcp was introduced in 2008 as a oneoff award with the objective of delivering exceptional rewards to participants provided 
absolute returns to shareholders are exceptional the vcp operates over a fiveyear period from may 2008 to march 2013 participants 
in the vcp are granted entitlements “vcp entitlements” to receive a maximum number of shares which shall be earned by the 
conversion of the vcp entitlements into an option or series of options the “vcp options” which may be granted on certain dates the 
“measurement dates” based on the company’s share price performance the exercise price for vcp options is the closing share price 
on the date of the company’s 2008 agm 
reconciliation of outstanding share options 
 2013 2012
 
number of 
entitlements 
number of 
entitlements
at 1 january 9257143  12857142 
vcp entitlements awarded during the year –  – 
lapsed during the year 9257143 3599999 
outstanding at 31 december –  9257143 
 
plan date of award 
numbers 
awarded lapsed exercised at 31 dec 2013 measurement date
vcp tier 1 awards 20052008 3500000 3500000 – – –
vcp tier 2 awards 20052008 6000000 6000000 – – –
vcp tier 3 awards 20052008 10000000 10000000 – – –
vcp tier 4 awards 20052008 3000000 3000000 – – –
  22500000 22500000– – 31032010 – 31032013
the exercise price for vcp options is the closing share price on the date of the company’s 2008 agm no awards were exercisable at 
the yearend 2012 nil 
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 
 21052008
 vcp
share price on award date 10700p
exercise price 10700p
number of simulations 200000 
number of companies 36 
award life 186 – 486 yrs
expected dividend 093
total fair value of awards at time of grant £13m
risk free interest rate 471
 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 97
 
the performance conditions are as follows 
 
number of shares earned less those earned at  
any prior measurement date 
 tier 1 awards tier 2 awards tier 3 awards tier 4 awards
first measurement 
date 31032010 share price less than £260 – – – –
 share price is £260 or more but less than £350 2500000 4285714  7142857 2142857 
 share price is £350 or more 3500000 6000000  10000000 3000000 
second measurement 
date 31032011 share price less than £260 – – – –
 share price is £260 or more but less than £350 1800000 3085714  5142857 1542857 
 share price is £350 or more but less than £450 2500000 4285714  7142857 2142857 
 share price is £450 or more 3500000 6000000  10000000 3000000 
third measurement 
date 31032012 share price less than £260 – – – –
 share price is £260 or more but less than £350 1200000 2057143  3428571 1028571 
 share price is £350 or more but less than £450 1800000 3085714  5142857 1542857 
 share price is £450 or more 2500000 4285714  7142857 2142857 
fourth measurement 
date 31032013 share price less than £260 – – – –
 share price is £260 or more but less than £350 600000 1028571  1714286 514285 
 share price is £350 or more but less than £450 1200000 2057143  3428571 1028571 
 share price is £450 or more 1800000 3085714 5142857 1542857
the vcp awards have measurement dates of 31 march 2010 31 march 2011 31 march 2012 and 31 march 2013 if at the 
measurement dates the share price targets have been met the eligible vcp entitlements will be converted into options over ordinary 
shares the options are not subject to further performance conditions but are exercisable on the following basis 
in year ended 
31122010
in year ended 
31122011 
in year ended 
31122012
in year ended 
31122013
percentage of entitlements converted to options at the 31032010 
measurement date that can be exercised 40 20 20 20
percentage of entitlements converted to options at the 31032011 
measurement date that can be exercised – 40 30 30
percentage of entitlements converted to options at the 31032012 
measurement date that can be exercised – – 40 60
percentage of entitlements converted to options at the 31032013 
measurement date that can be exercised – – – 100
employee expenses 
the expense recognised for employee services received during the year is shown in note 6 
24 retirement benefit obligations 
the group accounts for the swiss pension plans as a defined benefit plans under ias 19 revised – employee benefits the group 
adopted the updated requirements of ias 19 revised – employee benefits on 1 january 2013 this change in accounting policy has  
no significant effect on the group financial statements due to the immaterial nature of the plans  
the reconciliation of the net defined benefit assetliability and its components is as follows 
£m 31122013 31122012
fair value of plan assets 31 27
present value of obligations 33 29
net funded obligations 02 02
 
   98 regus plc annual report and accounts 2013
25 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 
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 present
access method resulting in an equity transaction of £163m the total purchase consideration for mwb business exchange plc  
was £657m 
£m book value 
final  
fair value 
adjustments 
final 
fair value
net assets acquired   
intangible assets – 09 09
property plant and equipment 349 94 255
cash 68 – 68
other current and noncurrent assets 259 76 183
current liabilities 530 179 709
noncurrent liabilities 231 115 116
 85 225 310
noncontrolling interests 2478 recognised in the acquired net assets and liabilities of 
mwb business exchange plc
a
   77
goodwill arising on acquisition   727
total consideration   494
   
cash flow on acquisition   
cash paid   494
net cash outflow   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 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 99
 
other acquisitions aggregated 
£m book value 
provisional 
fair value 
adjustments
provisional 
fair value
net assets acquired  
intangible assets
a
 – 03 03
property plant and equipment 113 18 95
cash 64 – 64
other current and noncurrent assets 93 21 72
current liabilities 158 22 136
noncurrent liabilities 107 33 74
 05 19 24
goodwill arising on acquisition
b
  553
total consideration  577
deferred consideration  09
  568
cash flow on acquisition  
cash paid  568
net cash outflow  568
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 
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  
the group continued to complete acquisition transactions subsequent to 31 december 2013 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 2012 the group made a number of individually insignificant acquisitions for a total consideration  
of £496m 
£m book value
provisional
fair value 
adjustments
 
fair value 
final 
fair value 
adjustments
 
fair value
net assets acquired  
intangible assets note 12
a
 –1111 –11
property plant and equipment note 13 51 73 124 – 124
other assets 38 – 38 26 64
current liabilities 41 – 41 62 103
noncurrent liabilities 29 – 29 – 29
 1984103 3667
goodwill arising on acquisitions 393 36 429
total consideration 496 496
deferred consideration 63 63
 433 433
cash flow on acquisition  
cash paid 433 433
net cash outflow 433 433
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  
   100 regus plc annual report and accounts 2013
25 acquisitions continued 
the net assets recognised in the 31 december 2012 consolidated financial statements were based on a provisional assessment of their 
fair value the valuation had not been completed by the date the 2012 financial statements were approved for issue by management 
in 2013 the valuation was completed and the fair value of the other assets was £64m an increase of £26m over the provisional value 
and the current liabilities was £103m an increase of £62m over the provisional value as a result there was also a corresponding 
increase in goodwill of £36m resulting in £429m of total goodwill arising on the acquisition 
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 £236m of the above 
goodwill is expected to be deductible for tax purposes 
there was no material contingent consideration arising on the above acquisitions 
the acquisition costs associated with these transactions were £09m recorded within administration expenses within the consolidated 
income statement 
26 capital commitments 
 
2013  
£m 
2012 
£m
contracts placed for future capital expenditure not provided for in the financial statements 144 228
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 2013 2012 £nil 
27 noncancellable operating lease commitments 
at 31 december 2013 the group was committed to making the following payments in respect of operating leases 
 2013 2012
 
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 5163 51 5214 4375 03  4378
between two and five years 14821 106 14927 10923 04  10927
after five years 5442 06 5448 4073  – 4073
 25426 163 25589 19371 07  19378
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 
28 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 £1099m 2012 £1014m there are no material lawsuits pending against the group 
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 101
 
29 related parties 
parent and subsidiaries entities 
the consolidated financial statements include the results of the group and the subsidiaries listed in note 30 
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
2013  
joint ventures 22 52 52
2012  
joint ventures 19 53 50
as at 31 december 2013 none of the amounts due to the group has been provided for 2012 £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 
 
2013 
£m
2012 
£m
shortterm employee benefits 67 59 
retirement benefit obligations 04 04
sharebased payments 09 03
 80 66
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 £25m 2012 £11m 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 2013 the group acquired goods and services from a company indirectly controlled by a director  
of the company amounting to £32298 2012 £30073 there was a £10862 balance outstanding at the yearend 2012 nil  
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 
   102 regus plc annual report and accounts 2013
30 principal group companies 
the group’s principal subsidiary undertakings at 31 december 2013 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 regus h holdings inc british virgin 
islands 100
hq do brazil administracao  
de bens e servicos  brazil 100
 
rgn general partner holdings corp canada 100
abc business centres ltd  england 100 rgn limited partner holdings corp canada 100
regus paris sas france 100 insignia partnership canada 100
regus gmbh  co kg germany 100 rgn services limited canada 100
regus business centres italia srl italy 100 regus management de chile ltda chile 100
regus japan kk japan 100 regus denmark holding as denmark 100
regus management de mexico  
sa de cv mexico 100
 
regus group limited england 100
regus amsterdam bv netherlands 100 regus investments limited england 100
regus business centre sa switzerland 100 regus business centres holding england 100
hq global workplaces llc united states 100 regus business centres  
trading limited england 100
regus business center llc united states 100 regus h holdings england 100
regus management singapore pte ltd singapore 100 regus h uk  england 100
   regus holdings uk limited england 100
principal activity –  
management companies 
  regus holdings sas france 100
   regus deutschland gmbh germany 100
regus australia management  
pty limited australia 100
 regus germany holding gmbh  
 co kg germany 100
regus belgium sa belgium 100 regus management gmbh germany 100
regus colombia limitada colombia 100 pathway ip sà rl luxembourg 100
regus poslovni centar doo croatia 100 rbw global holding sà rl luxembourg 100
regus management sro czech republic 100 regus middle east sà rl luxembourg 100
regus management aps denmark 100 regus india holdings limited mauritius 100
regus group services ltd england 100 regus pakistan holdings limited mauritius 100
business centres management 
estonia ou estonia 100
 
regus mexico s de rl de cv mexico 100
regus asia pacific  
management limited hong kong 100
 
regus netherlands bv netherlands 100
regus management latvia latvia 100 regus business centres bv netherlands 100
uab regus management lithuania lithuania 100 regus business centre norge as norway 100
regus management malaysia sdn bhd malaysia 100 regus holding gmbh switzerland 100
regus malta management ltd malta 100 regus corporation llc united states 100
regus amsterdam bv netherlands 100 regus holdings llc united states 100
regus management singapore pte ltd singapore 100 regus h holdings llc united states 100
regus management group pty ltd south africa 100 regus international services sa uruguay 100
regus management espana sl spain 100   
regus global management centre sa switzerland 100   
regus yonetim ve danismanlik  
ltd sirketi turkey 100
   
regus vietnam assets management vietnam 100   
  
notes to the accounts
continued strategic report governance financial statements
  wwwreguscominvestors 103
 
31 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  104 regus plc annual report and accounts 2013
summarised extract of company balance sheet prepared under luxembourg gaap 
 
as at  
31 dec 2013 
luxembourg 
gaap  
£m 
as at 
31 dec 2012 
luxembourg 
gaap 
£m
assets  
c fixed assets  
iii financial assets  
1 shares in affiliated undertakings 7193 7500
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  13 11
a becoming due and payable within one year  
iii transferable securities  
2 own shares  41 70
5257380 shares of £001 per share 2012 8982139 shares  
iv cash at bank and in hand – –
e deferred charges 01 02
total assets 7248 7583
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 41 70
4 other reserves 5159 5130
v results brought forward 1468 1868
vi results for the financial year 77 99
vii interim dividends 104 94
 7128 7516
c provisions   
2 provisions for taxation 01 01
3 other provisions – –
d nonsubordinated debts  
4 trade creditors  05 12
a becoming due and payable within one year  
6 amounts owed to affiliated undertakings   
a becoming due and payable within one year  114 54
 119 66
total liabilities 7248 7583
approved by the board on 4 march 2014 
mark dixon   dominique yates 
chief executive officer  chief financial officer 
  
parent company accounts strategic report governance financial statements
  wwwreguscominvestors 105
 
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 2013 which are available 
from the company’s registered office 26 boulevard royal luxembourg and which will be filed with both the luxembourg chamber 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  106 regus plc annual report and accounts 2013
segmental analysis – management basis unaudited 
  
americas 
2013
emea 
2013
asia pacific
2013
united 
kingdom 
2013 
other 
2013 
total
2013
 mature
1
   
 workstations
4
 83450 38972 31151 35215 – 188788
 occupancy  855 814 835 828 – 838
 revenue £m 5340 2983 1816 2107 17 12263
 contribution £m 1689 825 587 503 16 3620
 revpow 7486 9408 6978 7222 – 7750
    
 2012 expansions
2
   
 workstations
4
 19782 3877 12600 1088 – 37347
 occupancy  730 745 635 797 – 701
 revenue £m 751 190 393 60 – 1394
 contribution £m 33 05 24 07 – 69
    
 2013 expansions
2
   
 workstations
4
 11072 3499 3437 14143 – 32151
 occupancy  547 517 303 812 – 634
 revenue £m 286 160 42 1106 – 1594
 contribution £m 146 16 35 270 – 73
    
 closures   
 workstations
4
 680 625 – 184 – 1489
 occupancy  723 855 – 751 – 782
 revenue £m 20 46 – 18 – 84
 contribution £m 03 08 – 17 – 06
    
 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
    
 period end workstations
5
   
 mature 84409 39735 32312 35529 – 191985
 2012 expansions 19921 3839 12715 1113 – 37588
 2013 expansions 25074 12622 8477 16909 – 63082
 total 129404 56196 53504 53551 – 292655
 
  
segmental analysis strategic report governance financial statements
  wwwreguscominvestors 107
 
segmental analysis – management basis unaudited 
  
americas 
2012
emea 
2012
asia pacific 
2012
united  
kingdom  
2012 
other 
2012
total 
2012
 mature
1
  
 workstations
4
 83824384113017735871 –188283
 occupancy  872 809 833 831 – 845
 revenue £m 5096 2835 1847 2029 13 11820
 contribution £m 1534 783 577 376 12 3282
 revpow 6972 9123 7384 6807 – 7429
   
 2012 expansions
2
  
 workstations
4
 549318344271772 –12370
 occupancy  562 478 462 850 – 533
 revenue £m 176 65 107 42 – 390
 contribution £m 41 27 24 05 – 87
   
 closures
3
  
 workstations
4
 130012861091111 –3806
 occupancy  763 643 874 671 – 824
 revenue £m 67 112 05 47 – 231
 contribution £m 12 12 02 15 – 11
   
 total  
 workstations
4
 90617 41531 34557 37754 –204459
 occupancy  853 793 787 827 – 824
 revenue £m 5339 3012 1959 2118 13 12441
 contribution £m 1505 768 555 366 12 3206
 unallocated contribution £m –––– – 01
 revpaw £ 5892 7252 5669 5610 – 6085
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 2012 comparative data is defined as a centre closed during the period from 1 january 2012 to 31 december 2013 
4 workstation numbers are calculated as the weighted average for the year 
5 workstations available at period end  108 regus plc annual report and accounts 2013
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 
full year ended 
31 dec 2009 
£m
revenue 15335 12441 11626 10404 10551 
cost of sales before nonrecurring costs 11597 9234 8835 8231 8198
nonrecurring cost of sales – – – 119 –
cost of sales 11597 9234 8835 8350 8198
gross profit centre contribution 3738 3207 2791 2054 2353
administration expenses before nonrecurring expenses 2759 2257 2216 1907 1642
research  development 72 45 31 26 19
nonrecurring administration expenses – – – 39 26
administration expenses 2831 2302 2247 1972 1687
operating profit 907 905 544 82 692
exceptional income from legal settlement – – –  – 183 
operating profit after exceptional 907 905 544 82 849
share of posttax profitloss of joint ventures  01 03 01 13  20 
share of posttax profit of associate – – – –  – 
profit before financing costs 908 902 545 95 869
finance expense 105 59 64 21 36
finance income 12 08 13  18 33 
profit before tax for the year 815 851 494 92 866
tax chargecredit 146 142 90 59 192
profit after tax for the year 669 709 404 33 674
   
attributable to   
equity shareholders of the parent 669 709 417 29 667 
minority interests – – 13  04 07 
 669 709 404  33 674 
earnings per ordinary share eps   
basic p 71p 75p 43p 03p 71p
diluted p 70p 75p 43p 03p 70p
weighted average number of shares outstanding ‘000’s 943775 941922 941899  947463 948204 
balance sheet data as at 31 december   
intangible assets 4917 3639 3313 3308  3074 
property plant and equipment 6087 4375 3335 2795 2478
deferred tax assets 334 339 322 366 651 
trade and other receivables 4238 3339 3192 2999 2503 
cash cash equivalents and liquid investments 847 1323 1975 2046 2451 
total assets 16423 13015 12137 11514 11157
current liabilities 7588 6125 5784 5418  5045 
noncurrent liabilities 3644 1570 1264 1058 966 
provisions 49 46 82 98  82 
equity minority interests – – – 01  – 
equity shareholders’ funds 5142 5274 5007 4939 5064
total liabilities and shareholders’ funds 16423 13015 12137 11514 11157
five year summary 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 sà rl 
9 allée scheffer 
l2520 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  
goldman sachs 
peterborough court 
133 fleet street 
london ec4a 2bb 
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 
 
 
 
 
 
 
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 
shareholder information
  wwwreguscominvestors 109 regus plc sa
26 boulevard royal
l2449 luxembourg
wwwreguscom
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Summary:
 strategic report governance financial statements
  wwwreguscominvestors 15
chief executive ofﬁ cer’s review
chief executive officer’s review
mark dixon chief executive officer
following a record year of growth we 
have ﬁ rmly established ourselves with an 
unrivalled global network at the same 
time we also strengthened our presence at 
both a local and national level across the 
100 countries in which we now operate 
as we embed our business more deeply 
into local communities we take seriously 
our commitment to support them the 
endeavours of our team members with 
the backing of the business have helped 
thousands of individuals around the world 
and i thank them for their efforts 
group revenues increased by 233 to 
£15335m 2012 £12441m reﬂ ecting 
the signiﬁ cant expansion of our network 
in total £3011m was invested in growth 
2012 £1784m the result of which 
was a 30 increase in business centre 
locations to 1831 2012 1411 at the 
same time operating proﬁ t was marginally 
up at £908m 2012 £902m given the 
scale pace and costs of growth this is a 
strong result
our mature business remains the 
proﬁ t and cash engine of the group 
operating proﬁ ts rose by 33 to £2053m 
in part due to further improvements to 
yield management with free cash ﬂ ow 
after tax ﬁ nance costs and maintenance 
capital expenditure at £1565m 166p 
per share on the back of revenues up 
37 to £12263m mature eps also 
increased by 34 to 170p 2012 127p
costs remain ﬁ rmly under control 
notwithstanding the signiﬁ cant investment 
required to support growth improved 
efﬁ ciency and scale continued to deliver 
beneﬁ ts with overheads excluding 
research  development on a per
availableworkstation basis down by 38
we have been able to deliver this 
performance in large part due to the 
fundamental improvements to our country 
management structure these results 
clearly reﬂ ect the quality of our team 
and their skill in making the right often 
tough decisions to drive performance 
in what remained a challenging 
macro environment
we continue to respond to the 
fundamental changes affecting how we 
all work namely the shift from a ﬁ xed to 
a ﬂ exible mode of working our fortunes 
are inextricably linked to progress and 
developments in this highgrowth market 
among the core drivers of growth for 
regus are the signiﬁ cant cost savings 
associated with moving to more ﬂ exible 
workplace arrangement and outsourcing 
this to specialist providers such as regus 
as well as continued technological 
advances which allow us to work 
from anywhere other drivers include 
demographic changes sustainability 
and the growing societal importance of 
worklife balance as a result ﬂ exible 
working has come to be viewed as a 
core element of the way organisations 
operate and conduct business
group income statement
£m 2013 2012 change
revenue 15335 12441 233
gross proﬁ t 
centre 
contribution 3738 3207 17
gross margin 244 258
operating 
proﬁ t 908 902 1
operating 
margin 59 73
proﬁ t 
before tax 815 851 4
taxation 146 142
proﬁ t for 
the period 669 709 6
ebitda 1883 1593 18
ebitda margin 123 128
our business model has continually 
evolved to reﬂ ect the changing work 
needs of business and individuals 
our overarching aim has always been to 
provide our customers with the best 
possible help and support in deciding 
where and how they work in doing so we 
have created a strong and vibrant business 
which generates signiﬁ cant longterm 
shareholder returns
i will now review the performance of 
our business 
it has been another year of signiﬁ cant achievement for 
regus these strong results underline the fundamental 
strengths of our business and its forward momentum in 
a growing market 16 regus plc annual report and accounts 2013
performance against our strategic 
objectives
improve profi tability
the performance of our core mature 
centres business centres opened on or 
before 31 december 2011 underpins 
all growth activity within the group 
we remain pleased with the levels of 
occupancy averaging 838 through the 
year and the improvement of revpow 
to £7750 an increase of 43 up £321 
a sign of robust yield management 
this healthy occupancy and increased 
revpow drove incremental revenue 
growth which with operational gearing 
is then reﬂ ected in the improvement in 
mature gross proﬁ t margin to 293 
2012 278
the 2011 new centres which joined the 
mature estate in 2013 signiﬁ cantly closed 
the gap with the existing mature estate 
and are now performing at a similar 
gross proﬁ t before depreciation and 
amortisation margin 
our new centres business centres 
opened on or after 1 january 2012 has 
equally performed well and in line with 
expectations our primary objective is to 
ensure that all new centres perform in line 
with the rest of the mature estate as soon 
as possible
• the ﬁ nancial maturity proﬁ le of our 2012 
centres is in line with expectations 
these generated £1394m of revenue 
and made a positive centre contribution 
of £69m this translated into a gross 
proﬁ t margin before depreciation and 
amortisation of 151
• the 448 centres that we added during 
2013 generated revenues of £1594m 
and made a centre contribution of 
£73m in line with our expectations 
within this the acquisition of mwb has 
contributed strongly at the gross 
proﬁ t level
• the heavy overhead investment required 
to open and support these new centres 
resulted in a drag of £1140m on the 
group’s operating proﬁ t 2012 £626m 
develop national networks
this has been a record period of growth 
for regus we have opened more than 
500 locations – 448 business centres and 
76 third place in doing so we expanded 
our reach and enhanced our longterm 
earnings potential
it is a testament to the fundamental 
strength of our business model the 
robustness of our systems and processes 
and the skill and determination of our 
teams around the world that we have been 
able to execute this part of our strategy 
whilst also maintaining our daytoday 
operational performance at such a 
consistently high level
when a business looks to outsource its 
workplace requirements location is 
typically the primary consideration it is 
for this reason that we are investing in 
local and national networks taking the 
products and services we provide closer 
to where business needs us to be 
growth therefore both in our core 
business centre network and into third 
place locations such as airports retail 
outlets and community centres is a key 
objective for the group 
this year we expect to add at least 300 
new business centres and many new 
third place locations we continue to ﬁ nd 
plenty of opportunities both organic 
and through acquisition to grow our 
network on terms that meet our stringent 
investment criteria and which are capable 
of delivering longterm sustainable returns 
the integration of mwb into our uk 
business achieving all identiﬁ ed synergies 
provides a clear demonstration of 
our ability to deliver value through 
incremental acquisitions
as we grew we also continued to improve 
the composition of our business with 84 
of leases now either ﬂ exible or variable 
2012 82
our growing network is attractive to the 
increasing numbers of businesses looking 
to outsource their workplace needs and 
adopt more ﬂ exible working practices in 
general as a consequence end user 
demand for regus products and services 
remains strong over the course of 2013 
customer numbers increased by more than 
200000 to 158m 
chief executive ofﬁ cer’s review
continued strategic report governance financial statements
  wwwreguscominvestors 17
attracting more large corporate customers 
to our business remains a key priority 
we believe our network scale and reach is 
an important and crucial differentiator as 
these organisations seek to rationalise their 
smallofﬁ ce networks move towards more 
ﬂ exible work arrangements and reduce 
ﬁ xed costs notable new wins and contract 
extensions amongst many include twitter 
whom we helped open in 12 new countries 
over the year toshiba supporting 1000 
of their retail pointofsales team across 
14 countries and electronic arts 
supporting them in markets such as china 
and russia as well as opening in new ones 
across europe and asia we also extended 
our relationships with apple accenture 
edf energy and rbs amongst others
industry leading innovation
the quality and breadth of regus locations 
and associated products and services 
are core to our differentiation and are 
why customers choose to work with us 
we recognise that innovation is at the core 
of maintaining our marketleading position 
– we invest in research  development 
to ensure we stay ahead of the curve 
and continue to develop the locations 
products and services that attract 
customers to regus over the period 
we invested £72m in research  
development 2012 £45m this ensures 
we are best placed to anticipate and 
respond to the needs of our customers 
it also helps us deﬁ ne the workplace 
sector thereby enhancing our leadership 
position
during 2013 we continued development in 
a number of important areas not least with 
regards to the it and telephony services 
we provide to customers one of the core 
attractions of regus to mobile workers 
is the way that we can improve their 
productivity while they are on the move 
our cloud printing solution docstation has 
proved popular and continues to be rolled 
out globally we also concluded market 
testing of the workbox concept this is 
a selfcontained fully resourced private 
workspace with a footprint of four square 
metres ideal for locations with high 
transient footfall such as airports and 
service stations we intend to begin 
deployment in 2014
third place continues to make encouraging 
progress and is a fundamental part of our 
growth strategy over the last year we 
extended our relationship with shell and 
signed agreements to add additional 
locations to the uk motorway network 
since yearend we signed our ﬁ rst deal 
outside europe with the singapore 
government for the placing of facilities 
in public libraries we have also signed 
agreements to open dropin business 
lounges at heathrow and gatwick airports 
given the scale of the market opportunity 
we are encouraged by both end user 
adoption and interest from potential new 
partners this is driving rapid growth 
however in the context of our signiﬁ cant 
business centre operation it remains small 
at this stage
cost control
one of the fundamental strengths of 
our business is its ability to grow and 
leverage the beneﬁ ts of additional scale 
despite signiﬁ cant investment in growth 
total overheads excluding investment in 
research  development as a percentage 
of revenue reduced marginally to 180 
against an increase in the network of 30 
total overheads excluding investment 
in research  development and mwb 
related transaction and restructuring costs 
increased by 190 in addition to the 
scale beneﬁ ts mentioned earlier two 
other factors are driving this improvement 
namely the delayering and strengthening 
of management and automation of our 
backofﬁ ce processes the standardisation 
of repeatable tasks in our back ofﬁ ce 
allows us to concentrate activities within 
our single service centre in manila and 
harmonise service levels bringing 
signiﬁ cant productivity gains and freeing up 
centre teams for highervalueadd tasks
a high performing team
no commentary on our business 
performance would be complete without 
reference to our dedicated workforce 
without whose efforts we could not have 
achieved the progress we have made 
so far our ability to deliver at the local 
level becomes ever more dependent 
on the strength of our local incountry 
management teams in many respects 
this performance is a direct result of the 
management and structural improvements 
we have made at both a group and a 
country level and the devolution of 
daytoday operational decision making 
this process continues and we are 
making signiﬁ cant hires within all country 
management teams as we expand
as a servicebased business the strength 
and capabilities of our increasingly 
geographically diverse team are critical to 
achieving our objectives we recognise the 
importance of people development and the 
regus online learning academy together 
with a wide range of additional initiatives 
gives our team members the opportunity 
to learn and enhance the skills that will 
ensure they are capable of achieving their 
career ambitions we are committed to a 
fair approach and equal opportunities in all 
areas of our business
culturally we employ more than 100 
nationalities and with regard to gender we 
aim to achieve broadly equal outcomes for 
women and men for the group as 
a whole our workforce is 70 female 
30 male at a group operational level 
the breakdown is broadly equal and at a 
senior management level 30 of positions 
are held by women we successfully 
recruit train promote and retain skilled 
and motivated team members with very 
diverse backgrounds this is a core 
strength and critical to the successful 
development of our business
operational review
over the year the group added 448 new 
centres 2012 243 with the total number 
as of 31 december 2013 standing at 1831 
2012 1411 this growth resulted in an 
increase in total workstation capacity 
including nonconsolidated workstations 
of 269 to 304774 and the number 
of consolidated workstations as at 31 
december 2013 by 275 to 292655
to review our business more meaningfully 
we will concentrate on our mature 
business performance development 
which represents likeforlike business
mature centres performance
£m revenue contribution mature margin 
2013 2012 2013 2012 2013 2012
americas 5340 5096 1689 1534 316 301
emea 2983 2835 825 783 277 276
asia paciﬁ c 1816 1847 587 577 323 312
uk 2107 2029 503 376 239 185
other 17 13 14 13 – –
total 12263 11820 3590 3283 293 278 18 regus plc annual report and accounts 2013
americas
this business posted another good 
performance mature revenues were up 
42 at constant currency to £5340m 
up 48 at actual rates with average 
mature occupancy of 855 during the 
period 2012 872 mature gross 
margins improved to 316 2012 
301 during the year we added 
196 centres this increased our network 
to 875 business centre locations and 
took us into 83 new cities and markets 
including beverly hills california 
st pauls minnesota and langley 
canada this growth contributed to a 
27 increase in the average number 
of consolidated workstations from 
90617 in 2012 to 114984 in 2013
emea
this geographically diverse business 
also delivered a strong performance in 
spite of challenges in some markets 
mature revenues were up 22 at constant 
currency to £2983m up 52 at actual 
rates and achieved an average mature 
occupancy of 814 2012 809 
mature gross margin remained stable at 
277 2012 276 during the year 
we added 126 centres increasing our 
network to 450 business centre locations 
and opening in 23 new cities including 
pretoria south africa naples italy and 
dortmund germany this contributed to 
a 13 increase in the average number of 
consolidated workstations from 41531 in 
2012 to 46973 in 2013
asia pacifi c
our apac business continued its robust 
performance delivering mature revenues of 
£1816m up 32 on constant currency 
down 17 at actual rates and achieved 
an average mature occupancy of 835 
2012 833 mature gross margins 
improved to 323 2012 312 
during the year we added 58 new centre 
openings increasing the network to 290 
business centre locations and opening in 
ten new cities including ningbo china 
penang malaysia and kathmandu nepal 
our 100th country this contributed to a 
37 increase in the average number of 
consolidated workstations from 34557 in 
2012 to 47188 in 2013 
uk
our uk business made further strong 
progress delivering mature revenues of 
£2107m up 38 on 2012 mature gross 
margins improved to 239 2012 185 
and average mature occupancy remained 
healthy at 828 2012 831 including 
the acquisition of mwb 68 new business 
centre locations were added increasing 
the network to 216 this resulted in a 
34 increase in the average number of 
consolidated workstations from 37754 in 
2012 to 50630 in 2013 it is important to 
note that the integration of mwb went as 
planned and we remain on track to achieve 
the identiﬁ ed synergy savings
outlook
our business is in a strong position we 
are well positioned to continue to grow our 
networks customer base and earnings 
in 2014
strengthening and expanding our network 
is core to ensuring we continue to generate 
incremental returns over the medium term 
at this early point in the year it is difﬁ cult to 
predict precisely how many locations we 
will add but we expect to grow by at least 
300 new business centres during 2014 as 
well as add more third place locations
growth when coupled with increased 
investment in innovation will create 
additional demand for regus’ products 
and services especially from large 
corporates as they seek help in 
transitioning from ﬁ xed to ﬂ exible working 
the overriding focus therefore remains on 
ﬁ nding opportunities that meet our strict 
ﬁ nancial returns criteria and are consistent 
with our strategic objectives
current trading is good although the 
strengthening of sterling in recent months 
will affect the translation of our results 
notwithstanding this we remain conﬁ dent 
in our business model and our prospects 
for the year ahead
mark dixon
chief executive ofﬁ cer
4 march 2014
chief executive ofﬁ cer’s review
continued