Slide 1: Q1 2016 Earnings Conference Call
Q1 2016 Earnings Conference call NASDAQ: EQIX Presented on May 4, 2016 © 2016 Equinix Inc. 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 Equi
Slide 3: Q1 2016 Financial Highlights
Q1 2016 Financial Highlights Revenues ($M) Recurring Revenues Non-recurring Revenues Revenues of $844.2 Million $844.2 • Revenues up 16% QoQ and 31% YoY, $725.6 million $730.5 $643.2 $665.6 $686.6 organic and $118.6 million from acquisitions • Revenues up 3% QoQ and 16% YoY on an organic and constan
Slide 4: Stabilized IBX Growth
Stabilized IBX Growth (1) (1) Stabilized, Expansion & New IBXs Stabilized IBX Profitability (3) (4) (4) (6) (2) (1) New IBXs where Phase 1 began operating after January 1, 2015; added a new opening (2) Revenues represent Q1 16 as-reported revenues in millions; excludes revenues from TY5 in Q1 2016;
Slide 5: Interconnection Oriented Architecture
Interconnection Oriented Architecture™ How enterprises interconnect people, locations, clouds and data © 2016 Equinix Inc. Equinix.com 5
Slide 6: Q1 2016 Consolidated Results
Q1 2016 Consolidated Results Quarter ($M Except for Non-Financial Metrics) Q1 16 Q1 16 Q4 15 Q1 15 Q1 16 vs. Q1 16 vs. Guidance Actual Actual Actual Q4 15 % ∆ Q1 15 % ∆ Revenues $838 - $842 $ 844.2 $ 730.5 $ 643.2 16% 31% Cash Gross Profit 573.1 502.5 451.0 14% 27% Cash Gross Profit Margin % ~67% -
Slide 7: Americas Performance
Americas Performance Q1 Highlights Q1 Business Conditions ($M) $394.5 $404.4 $371.4 $382.6 $364.0 • Q1 reported revenues up 3% QoQ and 11% YoY • Q1 revenues increased 3% QoQ and 13% YoY on a constant $184.5 currency basis (1) $172.7 $170.9 $174.2 $180.8 • Q1 Adjusted EBITDA up 2% QoQ and 7% YoY on a
Slide 8: EMEA Performance
EMEA Performance Q1 Highlights Q1 Business Conditions ($M) $267.9 • Q1 revenues up 47% QoQ and 63% YoY on an as-reported basis $84.4 $182.7 • Q1 increased 2% QoQ and 17% YoY on an organic and constant $174.0 $177.6 $164.6 currency basis (1) $111.5 • Q1 Adjusted EBITDA increased 37% QoQ and up 47% Yo
Slide 9: Asia-Pacific Performance
Asia-Pacific Performance Q1 Highlights Q1 Business Conditions ($M) $171.9 $153.3 $34.2 • Q1 revenues up 12% QoQ and 50% YoY on an as-reported basis $126.5 $21.6 $114.6 $120.2 • Q1 revenues increased 4% QoQ and 25% YoY on an organic and constant currency basis (1) $84.7 $70.7 • Q1 Adjusted EBITDA up
Slide 10: Capital Structure and Debt Maturity
Capital Structure and Debt Maturity Capitalization Table ($M) Debt Maturity Profile (4) Loans Payable, Capital Lease & Other Financing Obligations ($M) Q1 16 Q4 15 Convertible Debt 5,791 Capital Leases $ 1,600 $ 1,327 Senior Notes Other Debt 5,641 5,244 (1) 2,441 Total Debt 7,241 6,571 (2) Less: Cas
Slide 11: Dividend Outlook
Dividend Outlook ($M) AFFO outlook (1) (1) >$1,015 • Increased 2016 guidance to >$1,015M • Implies growth of 22% YoY on an as-reported (2) basis and 28% growth YoY on a normalized $832 (1) and constant currency basis $762 $680 Dividend growth potential • AFFO growth provides capacity for long-term $
Slide 12: Capex
Capex Q1 2016 Capex and Regional Breakout Recurring Non-Recurring ($M) ($M) Recurring capital expenditures Sustaining IT & Network, 31% APAC, 31% Americas, • Expenditures to extend useful life of 39% IBXs or other Equinix assets in Maintenance, support of current revenues 54% Installation, • Recurri
Slide 13: FY16 Revenues Guidance
FY16 Revenues Guidance ($M) 2 3 >3,595 +13.4% -6 565 1 >3,036 2,726 2,677 -49 (1) FY15 Reported FY15 Organic FY16 Organic Acquisitions LD2 FY16 Guidance Normalized 1 Normalizing Items ($49M) 2 On track to deliver full year guidance 3 Acquisitions expected to deliver within Foreign Exchange (2) ($27M
Slide 14: FY16 Adjusted EBITDA Guidance
FY16 Adjusted EBITDA Guidance 46.7% 46.7% 47.9% 45.9% 47.4% ($M) >1,705 +16.2% >1,650 -3 -55 55 >1,453 255 1,272 1,251 -21 2 3 1 (1) (2) FY15 FY15 Organic FY16 Organic Acquisitions LD2 Integration FY16 Integration(2) FY16 Reported Normalized costs Guidance costs Guidance Normalized 1 Normalizing Ite
Slide 15: Q2 16 Guidance
Q2 16 Guidance ($M) Revenues Adjusted EBITDA 45.1% 46.9% 47.0% 45.3% 2.5% +2.9% 893-899 418-424 874 410 -15 403-409 30 29 844 381 1 2 Q1’16 Reported Q1’16 Q2’16 Q1’16 Q1’16 Q2’16 Integration Q2’16 Normalized Guidance Reported Normalized Normalized costs Guidance Guidance 1 Normalizing Items 2 $30M N
Slide 16: FY16 AFFO Guidance
FY16 AFFO Guidance ($M) Constant Currency change from Prior Change from Prior Guidance Guidance +30 +10 +19 -5 -13 +4 +46 +13 -3 +56 +13 +10 +19 -2 -13 +4 +32 +13 -3 +42 >1,650 Change due to updated forecast for US GAAP purchase accounting depreciation and -395 amortization amounts related to Teleci
Slide 17: 2016 Financial Guidance
2016 Financial Guidance (1) $M FY 2016 Q2 2016 (2) (3) Revenues > $3,595 $893 - $899 Cash Gross Margin % 67 - 68% 67 - 68% Cash SG&A $775 - $795 $195 - $201 Cash SG&A % ~22% 22 - 23% (4) (5) Adjusted EBITDA > $1,650 $403 - $409 Adjusted EBITDA Margin % ~45.9% ~45.3% Capex $900 - $1,000 $322 - $342 N
Slide 18: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data Global Interconnection Business Data Centers Ecosystems 145 Data Centers 1,400+ Networks 8,000+ Businesses 14.7M Square Feet 176,800 Cross-connects Equinix Marketplace™ 99.9999% Uptime 100% of Tier 1 Network Revenue Opportunities Record Routes © 2016 Equinix
Slide 19: Equinix Overview
Equinix Overview (1) Unique portfolio of data center assets Development pipeline • Global footprint: 145 data centers in 40 metros • Long history of development success through • Network dense: 1,400+ networks expansions, campuses and known demand pipeline • Cloud dense: 2,600+ Cloud & IT service pr
Slide 20: Equinix Global Platform
Equinix Global Platform (1) Equinix offers broad geographic reach and significant scale within each region Platform Equinix • Geographic footprint is unmatched and remains a unique differentiator • Multi-region deployments outpace single- region deployments Expansion strategy • Use unique market int
Slide 21: Customer Revenues Mix
Customer Revenues Mix Diversified Revenue by Customer, Region & Industry Global New Customer Count and Churn % 6% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Network Recurring Gross New Global Customers (4)(5) 210 170 170 180 170 16% 25% MIS MRR Churn (6) 2.0% 1.8% 2.0% 2.3% 2.2% Financial Services 20% 94% Enterp
Slide 22: Non-Financial Metrics
Non-Financial Metrics (1) FY 2015 FY 2016 Q1 Q2 Q3 Q4 Q1 # of Cross-connects INTERCONNECTION Americas 83,700 86,300 89,800 93,800 97,700 EMEA 38,400 39,700 41,500 43,900 44,500 1,400+ Networks Asia-Pacific 28,500 30,700 32,400 33,500 34,600 176,800+ Cross-connects Worldwide 150,600 156,700 163,700 1
Slide 23: Equinix Announced Expansions 2016-2017
Equinix Announced Expansions 2016-2017 Overview of major Equinix IBX data center expansions AMERICAS Sellable Cabinet Total CAPEX* IBX Center Target Open Date Equivalents* (millions U.S.$) Comments GLOBAL TOTALS AT1 phase IV (Atlanta) Q3 2016 365 $31 Global Total DC7 phase III (Ashburn) Q4 2016 230
Slide 24: Long-Term Lease Renewals
Long-Term Lease Renewals Average lease maturity greater than 20 years including extensions (1) Global Lease Portfolio Expiration Waterfall (2) Equinix Owned Sites % Leases Renewing by Square Footage • Own 28 of 145 IBXs Last Possible Expiration Date • 4.9M of 14.7M total gross square feet 70% (3) •
Slide 25: REIT Disclosure Update
REIT Disclosure Update Equinix real estate portfolio valuation disclosures Same-Store Operating Performance (previously disclosed) – Provides a year-over-year comparison of revenues composition and cash gross margin for a constant set of Stabilized and Expansion properties. Property operating status
Slide 26: Same Store Operating Performance (Organic Only)
(1) Same Store Operating Performance (Organic Only) Stabilized and Expansion – Cash Gross Profit grew 12.5% driven by Interconnection growth Revenues #039;000s Cash Cost & Gross Profit #039;000s Cash Cost Trailing 4-Qtr Inter- Services/ Total Non- Total of (2) Cash Gross (1) Cash Gross Cash Return on (2)
Slide 27: Consolidated Portfolio Operating Performance
(1) Consolidated Portfolio Operating Performance (Incl. Telecity & Bit-isle) By Region & Ownership – Owned Assets Generated 38% of Our Recurring Revenues (Organic Only) Cabinets Billed Revenues (Q1 2016) #039;000s Total Cabinet Owned % Cabinet Cabinets Utilization Inter- Services/ Total Non- Total (5)
Slide 28: Portfolio Composition – IBX mapping
Portfolio Composition – IBX mapping Same-Store Same-Store IBX (TCY IBX (EQIX Same-Store Same-Store IBX Location Ownership IBX Location Ownership Location Ownership IBX Location Ownership Classification Classification Name) (2) Name) Classification Classification Americas EMEA (1) Telecity Asia-Pacif
Slide 29: Adjusted Corporate NOI
(1) Adjusted Corporate NOI (Incl. Telecity & Bit-isle) (unaudited) Calculation Of Adjusted Corp NOI (unaudited) Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 (1) # of IBXs 144 105 104 104 104 (2) Recurring Revenues $ 792,269 $ 665,835 $ 644,455 $ 623,847 $ 608,280 Recurring Cash Cost of Revenues Allocatio
Slide 30: Adjusted NOI Composition
(1) Adjusted NOI Composition (Incl. Telecity & Bit-isle) By Stabilization and Ownership – Owned Assets and NOI are predominantly in campus locations in our largest global markets Total (3) Cabinet Adjusted NOI by Region Q1 2016 (4) Q1 2016 # of Cabinet Cabinets Utilization Recurring Quarterly Territ
Slide 31: Components of NAV
Components of NAV (Incl. Telecity & Bit-isle) (unaudited) Operating Portfolio Adjusted % of Adjusted NOI Quarterly Adjusted Ownership Reference NOI AMER EMEA APAC NOI Stabilized Owned 65% 35% 0% Adjusted NOI Segments $112,787 Stabilized Leased 73% 7% 20% Adjusted NOI Segments 175,920 Expansion Owned
Slide 32: Market Capitalization & Debt Summary
Market Capitalization & Debt Summary Mar 31, 2016 Spread / (1) Market Capitalization Summary Debt Coupon Interest Rate Maturity Balance Common shares outstanding 69,428 Revolver L + 120 1.25% Dec-19 - Market Price as of Mar 31, 2016 $ 330.71 Term Loan A L + 150 1.67% Dec-19 458,676 Market Value 22,9
Slide 33: REIT Financial Metrics
REIT Financial Metrics Adjusted EBITDA to AFFO Breakdown FFO, Diluted AFFO & Adjusted EBITDA per ($M) Diluted Share Adjusted EBITDA $381 $333 $311 $321 $306 $5.17 $5.24 $5.39 $5.28 $5.39 $3.77 $3.75 $3.55 $222 $221 $210 $210 $3.09 $2.87 $2.85 $2.98 $2.59 $178 $2.14 $1.68 Q1 2015 Q2 2015 Q3 2015 Q4 2
Slide 34: Fully Diluted Weighted Average Shares Forecast
Fully Diluted Weighted Average Shares Forecast (‘K) 71,399 ~797 ~-1,518 70,678 6,854 ~1,565 62,100 ~881 Shares outstanding Est. Employee 2016 Convertible Shares Issued Est. Shares Est. Dilutive Est. Weighting of Est. Fully Diluted @ 12/31/15 - Actual Equity Awards Notes In Connection Outstanding Uni
Slide 35: Recurring CapEx
Recurring CapEx Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Recurring Sustaining IT & Network $ 10,008 $ 9,400 $ 6,554 $ 8,249 $ 8,859 IBX Maintenance 17,279 29,574 13,886 13,652 8,485 Re-configuration Installation 4,511 5,693 5,467 5,429 5,028 Subtotal - Recurring 31,798 44,668 25,906 27,330 22,373 Non
Slide 36: FY16 Revenue FX Hedging
FY16 Revenue FX Hedging (4) Revenue FX Rates Currency % of Revenues Blended Guidance (2) Blended % of Currency Hedge Rate Guidance (3) (4) Rate (1) Hedge % Revenues CHF GBP Rate EUR 1% USD 1.0000 43% 11% 17% HKD EUR to USD 1.1395 1.1264 1.1341 49% 18% 4% AUD GBP to USD 1.4159 1.5480 1.4851 53% 11% O
Slide 37: Equinix Leadership and Investor Relations
Equinix Leadership and Investor Relations Executive Team Equinix Investor Relations Contacts Katrina Rymill Paul Thomas VP, Investor Relations Director, Investor Relations 650-598-6583 650-598-6442 krymill@equinix.com pthomas@equinix.com Equinix Media Contacts Steve Smith Keith Taylor Charles Meyers
Slide 38: Appendix: Non-GAAP Financial Reconciliations & Definitions
Appendix: Non-GAAP Financial Reconciliations & Definitions © 2016 Equinix Inc. Equinix.com 38
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations EQUINIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FROM CONTINUING OPERATIONS - NON-GAAP PRESENTATION (in thousands) (unaudited) Three Months Ended March 31, December 31, March 31, 2016 2015 2015 We define cash cost of revenues as cost of revenues less depreciatio
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations EQUINIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FROM CONTINUING OPERATIONS - NON-GAAP PRESENTATION (in thousands) (unaudited) Three Months Ended March 31, December 31, March 31, 2016 2015 2015 We define cash operating expenses as operating expenses less depreci
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations EQUINIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FROM CONTINUING OPERATIONS - NON-GAAP PRESENTATION (in thousands) (unaudited) Three Months Ended March 31, December 31, March 31, 2016 2015 2015 We define adjusted EBITDA as income from continuning operations plus
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations EQUINIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FROM CONTINUING OPERATIONS - NON-GAAP PRESENTATION (in thousands) (unaudited) Three Months Ended March 31, December 31, March 31, 2016 2015 2015 The geographic split of our adjusted EBITDA is presented below: Amer
Slide 43: Non-GAAP Reconciliations
Non-GAAP Reconciliations EQUINIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FROM CONTINUING OPERATIONS - NON-GAAP PRESENTATION (in thousands) (unaudited) Three Months Ended March 31, December 31, March 31, 2016 2015 2015 We define cash gross margins as cash gross profit divided by revenue
Slide 44: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands, except per share amounts) Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Q2 2014 CALCULATION OF ADJUSTED EBITDA Income from continuing operations $ 112,688 $ 135,877 $ 140,883 $ 139,133 $ 151,449 $ 127,826 $ 135,131 $ 124,697 Adjustments
Slide 45: Non-GAAP Reconciliations
Non-GAAP Reconciliations NAREIT Funds From Operations (NAREIT FFO) (unaudited and in thousands, except per share amounts) Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Q2 2014 RECONCILIATION OF NET INCOME (LOSS) TO NAREIT FFO Net income (loss) $ (31,111) $ 10,731 $ 41,132 $ 59,459 $ 76,452
Slide 46: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Funds From Operations (AFFO) (unaudited and in thousands, except per share amounts) Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Q2 2014 NAREIT FFO attributable to common shareholders $ 115,875 $ 131,483 $ 151,197 $ 167,368 $ 179,190 $(241,338) $ 146,059
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: © 2016 Equinix Inc. Equinix.com
© 2016 Equinix Inc. Equinix.com 48