Table of Contents Illustrative Annual Economics We believe that the workstation capacity we create with our investment in net capital expenditures has the potential to generate significant revenue and contribution margin over the course of a 15-year lease. The table below demonstrates the potential annual revenue and target contribution margin that could be generated over the lifetime of a lease from incremental capacity of 273,000 workstations. (1) Average revenue per WeWork membership $6,320 (2) Implied annual revenue (in millions) $1,725 Target contribution margin percentage 30% (3) Implied annual target contribution margin (in millions) $517 Note: Assumes 100% utilization of workstation capacity to illustrate the maximum potential annual membership and service revenue and contribution margin that could be generated based on average revenue per WeWork membership for the six months ended June 30, 2019 and our target contribution margin percentage included in the table above, which represents our target contribution margin percentage over the lifetime of a lease. This presentation is illustrative and not necessarily indicative of the actual annual membership and service revenue or the actual annual contribution margin that would be generated from an investment of $1 billion in net capital expenditures or from the addition of 273,000 workstations. In addition to assuming 100% utilization of workstation capacity, this illustration assumes no maintenance capital expenditures, no pre-opening location expenses, no sales and marketing expenses, no general and administrative expenses and no growth and new market development expenses. (1) Represents average revenue per WeWork membership of $6,320 for the six months ended June 30, 2019 ($1.3 billion of membership and service revenue divided by 423,661 average WeWork memberships, in each case for the six months ended June 30, 2019, and in each case excluding WeLive and IndiaCo). (2) Represents implied annual membership and service revenue based on illustrative workstation capacity of 273,000 multiplied by illustrative average revenue per WeWork membership of $6,320. (3) Represents implied annual revenue of $1.7 billion multiplied by our target contribution margin percentage over the lifetime of a lease of 30%. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Contribution Margin” for additional information about our non-GAAP measures. Find • 724,000 potential workstations (39% of total) as of June 1, 2019 • Term sheet has been exchanged or lease is being negotiated • Growth and new market development expenses (real estate team) are incurred Our real estate team is responsible for sourcing, underwriting, negotiating and entering into leases for spaces that fit our investment criteria within our existing and new markets. We maintain a broad database of potential real estate opportunities, and we consider any opportunity for which a draft term sheet has been exchanged or a lease is being negotiated to be within our potential location pipeline. As of June 1, 2019, our potential location pipeline included approximately 40 million usable square feet, which we estimate could accommodate approximately 724,000 workstations. Sign • 327,000 potential workstations (18% of total) as of June 1, 2019 • Leases have been signed, but we have not yet taken possession of the location • No revenue or contribution margin is generated • Generally, no capital expenditures are incurred • Investments generate losses as growth and new market development expenses (real estate team) are incurred Once we identify a desirable location, we endeavor to negotiate favorable lease terms. The terms often include free rent periods, which we primarily use to transform a traditional office space into a WeWork location, and tenant improvement allowances, under which a landlord reimburses us for all or a portion of the capital expenditures we incur during this transformation. As we scale, we intend to pursue capital-efficient partnerships with building owners through participating leases as an alternative to standard leases. Under a participating lease, the landlord typically pays or reimburses us for the full build-out of the space. Additionally, we generally do not pay a specified annual rent, but rather rent is determined based on revenues or profits from the space. We also plan to continue to enter into management agreements, as we 80