Slide 1: Q2 2021 Earnings Conference Call
Q2 2021 Earnings Conference Call NASDAQ: EQIX Presented on July 28, 2021 © 2021 Equinix.com 1
Slide 2: Public Disclosure Statement
Public Disclosure Statement Forward-Looking Statements Except for historical information, this presentation contains forward-looking statements which include words such as “believe,” “anticipate,” and “expect”. These forward-looking statements involve risks and uncertainties that may cause Equinix’s
Slide 3: Q2 2021 Financial Highlights
Q2 2021 Financial Highlights Revenues Recurring Revenues Non-recurring Revenues Revenues Growth Q2 21 ($M) $1,596 $1,658 QoQ YoY $1,520 $1,564 $1,470 As-reported 4% 13% Normalized and (1) 4% 8% $1,432 $1,466 $1,511 $1,542 Constant Currency $1,398 (1) Normalized MRR 2% 6% Q2 20 Q3 20 Q4 20 Q1 21 Q2 2
Slide 4: Q2 2021 Consolidated Results
Q2 2021 Consolidated Results $M except for AFFO per Share and Q2 21 Non-Financial Metrics Guidance Actual QoQ YoY Revenues (1) $1,630 - 1,660 $1,658 4% 13% Cash Gross Profit $1,114 3% 13% Cash Gross Margin % 67.2% Cash SG&A $316 1% 18% Cash SG&A % 19.1% (2) Adjusted EBITDA $769 - 789 $797 3% 11% Adj
Slide 5: Americas Performance
Americas Performance Revenues Organic Revenues Bell $726 $751 Q2 21 ($M) $712 Revenues Growth $661 $672 $32 $36 QoQ YoY $28 As-reported 3% 13% Normalized and (1) 3% 8% Constant Currency $684 $694 $715 (1) Normalized MRR 2% 6% Adjusted EBITDA Q2 21 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Growth QoQ (3) YoY Adj
Slide 6: EMEA Performance
EMEA Performance Revenues Revenues Q2 21 ($M) $538 $518 $511 $519 Growth QoQ YoY $488 As-reported 4% 10% Normalized and (1) 4% 8% Constant Currency (1) Normalized MRR 3% 5% Adjusted EBITDA Q2 21 Growth QoQ YoY Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 As-reported 8% 8% Adjusted EBITDA Adjusted EBITDA Adjusted E
Slide 7: Asia-Pacific Performance
Asia-Pacific Performance Revenues Revenues Q2 21 ($M) $369 $341 $351 Growth QoQ YoY $321 $329 As-reported 5% 15% Normalized and (1) 6% 11% Constant Currency (1) Normalized MRR 3% 9% Adjusted EBITDA Q2 21 Growth QoQ YoY Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Mar
Slide 8: Capital Structure
Capital Structure Available Liquidity (1)(2) In April, S&P and Fitch each raised Equinix’s credit ratings to BBB $3.7B Recent Capital Markets Activity Ratings • Redeemed $1.25B of legacy high yield Senior Notes and repaid SEK 2.4B TLA and ¥41.6B TLA Baa3 / BBB / BBB with proceeds from the issuance o
Slide 9: $196M Annual Interest Savings Achieved from IG Refinancings
$196M Annual Interest Savings Achieved from IG Refinancings Debt Refinancing Nov 2019 Jun 2020 Sept 2020 Feb 2021 May 2021 Total Issued $1.85B $2.6B $11.2B $2.8B $2.6B €1.1B (Green Portion) ($1.35B) ($1.0B) ($3.7B) Redeemed $2.25B $2.45B €1.5B €0.5B $1.9B $9.0B WAC(1)(2) Redeemed Notes → New Notes 5
Slide 10: Capital Expenditures
Capital Expenditures Recurring Capital Expenditures 4.8% ($M) • Recurring capital expenditures have $74 10% historically trended between 2% and 5% of 5% 2.7% revenues, annually 2.5% 2.1% $45 $38 17% • Maintenance capital expenditures can vary by $30 12% 1.3% 17% 23% 15% 85% $20 quarter based on main
Slide 11: Stabilized IBX Growth
(1) (2) Stabilized IBX Growth Stabilized, Expansion & New IBXs Stabilized IBX Profitability ($M) Last Quarter $12,129 $4,687 $3,230 $93 Reported # of IBXs Q2 21 Revenues ($M) 27% annual Cash Gross Expansion: Profit on Gross PP&E 20% (3) investment (5) Growth YoY Stabilized: Stabilized: 212 86% Utili
Slide 12: 2021 Financial Guidance
(1) 2021 Financial Guidance ($M except AFFO per Share) FY 2021 Q3 2021 (3) (2) Revenues $6,619 - 6,659 $1,668 - 1,688 (4) (5) Adjusted EBITDA $3,108 - 3,148 $766 - 786 Adjusted EBITDA Margin % ~47% 46 - 47% Recurring Capital Expenditures $188 - 198 $50 - 60 % of revenues ~3% 3 - 4% (6) Non-recurring
Slide 13: FY21 Guidance
FY21 Guidance (2) Revenues Adjusted EBITDA Raise full year revenues guidance by $50M Raise full year adjusted EBITDA guidance by $27M 47.1% As-reported Margin 47.1% ($M) Normalized (1) Margin excl. Integration 47.5% ~8% 47.5% Constant Currency Costs YoY Growth $6,619 - 6,659 $3,133 - 3,173 25 11 25
Slide 14: Q3 Guidance
Q3 21 Guidance Revenues Adjusted EBITDA As-reported Margin Q3 normalized growth of 1 - 2% following a record Q2 step-up Adjusted EBITDA impacted by lower Q2 costs and and lower Q3 Non-recurring Revenues higher seasonal utilities spend 48.1% 48.2% 46.7% 46.2% ($M) 1 - 2% -~2% $1,668 - 1,688 $797 $796
Slide 15: FY21 AFFO and AFFO per Share Guidance
(1) FY21 AFFO and AFFO per Share Guidance (2) Raise full year AFFO guidance by $15M; AFFO per share growth to 9 - 11% Share Count (Diluted) ($M except AFFO per Share) Normalized Constant Currency YoY Growth AFFO per Share (Diluted) (3) AFFO 10 - 12% 88.4M 90.3M 90.4M 1 Raise AFFO guidance $24.76 $26
Slide 16: Dividend Outlook
Dividend Outlook Annual Cash Dividend ($M) ~10% +13% ~$1,030 $936 $826 • Second quarter dividend of $2.87 to be $727 paid on September 22, 2021 $612 • 2021E cash dividend payout of 43% 44% 43% 43% 42% ~$1,030M (10% YoY) and $11.48 per share Payout Payout Payout Payout Payout Ratio Ratio Ratio Ratio
Slide 17: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data All the Right All the Right All the Right PLACES PARTNERS POSSIBILITIES Place Infrastructure Connect to Everything Seize Opportunity with Wherever You Need It You Need to Succeed Agility, Speed and Confidence Global Footprint Global Ecosystem Experience 230
Slide 18: Equinix Overview
Equinix Overview (1) • Global footprint: 230 data centers in 64 metros Unique Portfolio of Data • Network dense: 1,800+ networks; 100% of Tier 1 Network Routes Center Assets • Cloud dense: 3,000+ Cloud & IT service providers • Interconnected ecosystems: 406,000+ Total Interconnections • 2021 expecte
Slide 19: Pressing Our Advantage in All Markets
Pressing Our Advantage in All Markets Equinix global reach expanding across 64 metro areas and 26 countries 5 Continents 26 Countries 64 Metro areas 230 Data centers AMERICAS EMEA ASIA-PACIFIC % of Customers in Platform Equinix (1) 27 Metros 103 Data Centers 25 Metros 81 Data Centers 12 Metros 46 Da
Slide 20: xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership
xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership Q2 2021 Leasing Activity Phase Cost Phase Phase JV Status Capacity Leasing Opening ($M) • Pre-leased entire Frankfurt 9x asset with 18MW of (MW) (MW) capacity Americas São Paulo 5x-1 JV Ready Q3 2021 $52 5 0 • Pre-leased entire London 1
Slide 21: Customer Revenues Mix
Customer Revenues Mix Diversified Revenues across Customer, Region and Industry segments Revenues Mix Customers and Churn Top 10 Customers Rank Type of Customer %MRR Region Count IBX Count EMEA 1 Cloud & IT Services 2.6% 3 69 Enterprise 32% 34% INT 2 Network 2.5% 3 143 Network 19% Asia- 3 Cloud & IT
Slide 22: Non-Financial Metrics
Non-Financial Metrics (1) FY 2020 FY 2021 Q2 Q3 Q4 Q1 Q2 QoQ Interconnections Americas 158,000 160,500 162,800 165,000 167,100 2,100 EMEA 128,600 131,200 132,500 133,700 135,800 2,100 Asia-Pacific 65,600 67,500 67,200 69,000 70,500 1,500 Worldwide Cross Connections 352,200 359,200 362,500 367,700 37
Slide 23: Equinix Announced Retail IBX Expansions
Equinix Announced Retail IBX Expansions Cabinet(1) Equivalent Expansion Highlights Total Capex(1) IBX Data Center Status Q2 Q3 Q4 Q1 Q2 2022 Q3 Q4 $US millions Ownership Capacity In Future Phases • We have 35 major builds underway SV11 phase 1 (Silicon Valley) Open 1,450 $142 Owned 1,500 in 25 marke
Slide 24: Long-Term Lease Renewals
Long-Term Lease Renewals Weighted average lease maturity of greater than 18 years including extensions (1) Global Lease Portfolio Expiration Waterfall Equinix Owned Sites (2, 3) % Leases Renewing by Square Footage • Own 112 of 230 Data Centers (4) Last Possible Expiration Date • 16.8M of 27.0M total
Slide 25: Same Store Operating Performance
Same Store Operating Performance (1) Revenues ($M) Cash Cost, Gross Profit and PP&E ($M) Cash Cost Trailing 4-Qtr Inter- Services/ Total Non- Total of Cash Gross Cash Gross Gross Cash Return on Category Colocation connection Other Recurring recurring Revenues Revenues Profit Margin % PP&E Gross PP&E
Slide 26: Consolidated Portfolio Operating Performance
Consolidated Portfolio Operating Performance (1) Cabinets Billed Q2 21 Revenues ($M) Total Cabinet Owned % of Cabinet Cabinets Utilization Total Total Category # of IBXs Capacity Billed % Recurring Recurring (5) Americas Owned (2) 52 88,800 63,000 71% $455 Leased 38 34,400 27,400 80% $198 Americas T
Slide 27: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New Acquisition xScale Owned Leased Atlanta 5 AT2, AT3, AT4, AT5 AT1 AT4 AT1, AT2, AT3, AT5 Bogota 1 BG1 BG1 Boston 1 BO2 BO2 Calgary 3 CL1, CL2, CL3 CL3 CL1, CL2 Chicago 5 CH1, CH2, CH4, CH7 CH3 CH3, CH7 CH1, CH2, CH4 Culpeper 4 CU1
Slide 28: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New Acquisition xScale Owned Leased Abu Dhabi 1 AD1 AD1 Change Summary (1) (2) (3) Amsterdam 9 AM1, AM2, AM3, AM5, AM6, AM8 AM4, AM7, AM11 AM1*, AM2*, AM3*, AM4*, AM5, AM6, AM7* AM8, AM11 Barcelona 1 BA1 BA1 Bordeaux 1 BX1 BX1 Dubai
Slide 29: Adjusted Corporate NOI
(1) Adjusted Corporate NOI ($M, except # of IBXs) Calculation Of Adjusted Corp NOI Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 (1) # of IBXs 225 224 225 212 211 (2) Recurring Revenues $1,529 $1,497 $1,453 $1,420 $1,385 Recurring Cash Cost of Revenues Allocation (454) (434) (466) (431) (416) Cash Net Ope
Slide 30: Adjusted NOI Composition – Organic
Adjusted NOI Composition – Organic (1) Q2 2021 Total Cabinet Q2 2021 Quarterly # of Cabinet Cabinets Utilization Recurring Adjusted NOI Category IBXs Capacity Billed % Revenues ($M) ($M) % NOI Stabilized Owned (2) 60 122,100 105,900 87% $596 $398 42% Leased 93 100,900 85,900 85% $549 $338 36% Stabil
Slide 31: Components of Net Asset Value
Components of Net Asset Value Operating Portfolio Q2 21 Quarterly Ownership Reference Adjusted NOI Adjusted NOI ($M) Stabilized Owned Adjusted NOI Segments $398 Stabilized Leased Adjusted NOI Segments $338 Expansion Owned Adjusted NOI Segments $158 Expansion Leased Adjusted NOI Segments $41 Other Re
Slide 32: Debt Summary
Debt Summary Debt Interest (1) Maturity Balance(2) Debt Redemption, Issuance and Rate ($M) Amortization Revolver 0.937% 12-Dec-2022 - • $1.25B 2027 Notes redeemed on June 2 (3) GBP Term Loan A 1.080% 12-Dec-2022 578 Senior Notes • SEK 2.4B Term Loan A and ¥41.6B Term Loan A 2.625% USD Senior Notes d
Slide 33: Shares Forecast
Shares Forecast (M) Fully Diluted Weighted Average Shares Common Stock Outstanding 89.8 -0.3 89.6 ~90.4 0.7 89.1 89.1 ~90.1 88.5 0.1 1.5 1.6 1.6 0.8 1.3 1.3 89.1 Shares Est. Employee ATM Offering Est. Shares Est. Weighted Est. Weighting Est. Fully Diluted Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Outstanding @
Slide 34: Capital Expenditures Profile
Capital Expenditures Profile ($M) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Recurring IBX Maintenance 30 13 63 28 19 Sustaining IT & Network 8 3 4 6 5 Re-configuration Installation 8 5 8 4 7 Subtotal - Recurring 45 20 74 38 30 Non-Recurring IBX Expansion 515 453 582 417 372 Transform IT, Network & Off
Slide 35: FX Rates, Hedging and Currencies
FX Rates, Hedging and Currencies (4) Currency % of Revenues Revenue FX Rates (1) (2) Blended (2) Blended (3) % of CHF Currency Guidance Rate Hedge Rate (4) GBP Guidance Rate Hedge % Revenues 1% 10% EUR HKD USD 1.00 38% 20% 3% AUD EUR to USD 1.19 1.16 1.17 64% 20% 4% GBP to USD 1.38 1.31 1.33 72% 10%
Slide 36: Future First Sustainability @ Equinix
Future First Sustainability @ Equinix Our commitment to sustainability is driven by our belief in a future of possibility. AWARDS ESG RATINGS Do what it takes • Commitment to become Climate Neutral Globally to protect our by 2030 and science-based targets aligned to 1.5°C planet. • Issued $3.7B+ in
Slide 37: Industry Analyst Reports
Industry Analyst Reports Solution Category Reports • Marketscape: WW Datacenter Colocation & Interconnection Services 2021 Vendor Assessment - IDC, 6/21 Interconnection • Equinix: The Global Digital Platform Facilitator – IDC, 1/21 • Interconnection amplifies the value of bare metal deployments – ES
Slide 38: Equinix Leadership and Investor Relations
Equinix Leadership and Investor Relations Executive Team Equinix Investor Relations Contacts Equity Research Analysts Katrina Rymill Bank of America Michael Funk VP, IR and Sustainability Barclays Brendan Lynch 650-598-6583 Berenberg Nate Crossett krymill@equinix.com BMO Capital Markets Ari Klein Ke
Slide 39: Appendix: Non-GAAP Financial Reconciliations & Definitions
Appendix: Non-GAAP Financial Reconciliations & Definitions © 2021 Equinix.com 39
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2021 Equinix.com 40
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2021 Equinix.com 41
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2021 Equinix.com 42
Slide 43: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2021 Equinix.com 43
Slide 44: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2021 Equinix.com 44
Slide 45: Non-GAAP Reconciliations
Non-GAAP Reconciliations Consolidated NOI calculation Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 (unaudited and in thousands) Revenues $ 1,657,919 $ 1,596,064 $ 1,564,115 $ 1,519,767 $ 1,470,121 Non-Recurring Revenues (NRR) (1) 92,658 80,899 95,149 82,550 68,832 Other Revenues (2) 36,635 18,537 16,384
Slide 46: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Income from Operations $ 278,654 $ 297,662 $ 228,606 $ 288,350 $ 282,488 Adjustments: Depreciation, Amortization and Accretion Expense 417,758 394,318 378,859 362,286 348,434 Stock-based Compensation Expens
Slide 47: Non-GAAP Reconciliations
Non-GAAP Reconciliations NAREIT Funds From Operations (NAREIT FFO) - We calculate Funds From Operations in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT FFO represents net income (loss), excluding gains (or losses) from disp
Slide 48: Definitions: Non-financial Metrics, IBX growth, REIT and Capital Expenditures
Definitions: Non-financial Metrics, IBX growth, REIT and Capital Expenditures Non-financial Metrics MRR per Cab: Monthly recurring revenues per billed cabinet: (current quarter monthly recurring revenues / 3) divided by ((quarter end cabinets billing prior quarter + quarter end cabinets billing curr
Slide 49: © 2021 Equinix.com
ull FQUINIX WHERE OPPORTUNITY CONNECTS