Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q2 2022 Earnings Presentation
18 slides from Cushman & Wakefield's earnings presentation, Aug 4, 2022
Slide 1: Q2 Earnings Presentation
CUSHMAN & WAKEFIELD Q 2 E A R N I N G S P R E S E N TAT I O N AUGUST 4, 2022
Slide 2: Cautionary Note on Forward Looking Statements
CAUTIONARY NOTE ON FORWARD LOOKING STATEMENTS All statements in this presentation (and oral statements made regarding the subjects of this presentation) other than historical facts are forward-looking statements, which rely on a number of estimates, projections and assumptions concerning future even
Slide 3: Non-GAAP Financial Measures and Other Financial Information
NON-GAAP FINANCIAL MEASURES AND OTHER FINANCIAL INFORMATION We have used the following measures, which are considered "non-GAAP financial measures" under SEC guidelines: i. Segment operating expenses and Fee-based operating expenses; ii. Adjusted earnings before interest, taxes, depreciation and amo
Slide 4: Second Quarter 2022 Business Update
SECOND QUARTER 2022 BUSINESS UPDATE › Q2 fee revenue of $1.9 billion, up 21% versus Q2’21 - Leasing & Capital Markets fee revenue up 24% & 33%, respectively, year over year - PM/FM and Valuation & Other fee revenue up 16% & 8%, respectively, year over year › Q2 Adjusted EBITDA of $263 million, up 23
Slide 5: Financial Overview
FINANCIAL OVERVIEW HH | CUSHMAN & i WAKEFIELD
Slide 6: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS Three Months Ended › Fee revenue growth reflects strong brokerage activity in the (USD $m) % Change June 30, second quarter versus prior year 2022 2021 USD LC Fee Revenue $1,916 $1,630 18% 21% - Americas and EMEA brokerage fee revenue above Q2’19 Pre- COVID levels Adjusted
Slide 7: Q2 Fee Revenue by Segment and Service Line
Q2 FEE REVENUE BY SEGMENT AND SERVICE LINE Fee Revenue Segment Growth % of Fee Revenue LTM(1) Q2’22 14% 1,916 21% 73% 1,630 255 11% 242 249 22% APAC EMEA Americas 230 13% › Strong double digit revenue growth across all 1,413 22% segments 1,158 Americas EMEA APAC › Brokerage fee revenue in Americas a
Slide 8: Americas – Q2 Performance
AMERICAS – Q2 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue LTM Q2’22 1,413 22% 4% 53 19% 1,158 43% 309 29% 45 240 23% Valuation and Other 446 31% 341 Capital Markets Leasing Prop, Fac and Proj 533 605 14% Management Q2'21 Q2'22 LC Growth 30% Adj. EBITDA 157 211 34% Prop, Fac and Proj
Slide 9: EMEA – Q2 Performance
EMEA – Q2 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue LTM Q2’22 249 22% 19% 230 38% 44 8% 45 46 56% 33 Valuation and Other Capital Markets 60 64 21% 18% Leasing Prop, Fac and Proj 91 95 18% Management Q2'21 Q2'22 LC Growth 25% Adj. EBITDA 32 35 29% Prop, Fac and Proj Management Leas
Slide 10: APAC – Q2 Performance
APAC – Q2 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue LTM Q2’22 255 11% 12% 242 31 (6)% 34 13 47% 10 8% 43 (15)% 61% 53 Valuation and Other Capital Markets Leasing 168 22% 145 Prop, Fac and Proj Management 19% Q2'21 Q2'22 LC Growth Adj. EBITDA 31 17 (40)% Prop, Fac and Proj Manageme
Slide 11: Capital Structure
CAPITAL STRUCTURE Net Debt / Adj. EBITDA Debt Maturity Profile(1) 2,584 4.3x 2.8x 2.6x 1,100 2.5x 642 2022 2023 2024 2025 2026 2027 2028 2019 2020 2021 Q2'22 Term Revolver Senior Loan Secured Active Debt Portion Facilities Available Notes › Liquidity strong at $1.6 billion, with $477 million of cash
Slide 12: Q&A
Q&A Hl | CUSHMAN & i WAKEFIELD
Slide 13: Supplemental Slides and Reconciliations of GAAP to Non-GAAP Financial Measures
SUPPLEMENTAL SLIDES AND RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
Slide 14: Debt and Leverage
DEBT AND LEVERAGE Twelve Months Ended (USD $m, unless otherwise indicated) June 30, 2022 December 31, 2021 December 31, 2020 December 31, 2019 2018 First Lien Loan(1) 2,583.9 2,593.8 2,613.7 2,637.5 2020 Senior Secured Notes(2) 641.5 640.8 639.4 — Total Debt $3,225.4 $3,234.6 $3,253.1 $2,637.5 Less:
Slide 15: Summary of Total Segment Revenues
SUMMARY OF TOTAL SEGMENT REVENUES Three Months Ended Six Months Ended Twelve Months Ended (USD $m) June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 June 30, 2022 Americas Segment Property, facilities and project management $605.3 $533.0 $1,196.5 $1,073.8 $2,344.4 Leasing 446.0 341.0 814.2 560
Slide 16: Summary of Total Costs and Expenses
SUMMARY OF TOTAL COSTS AND EXPENSES Three Months Ended Six Months Ended (USD $m) June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Americas Fee-based operating expenses $1,219.7 $1,002.3 $2,306.4 $1,856.5 EMEA Fee-based operating expenses 213.9 199.2 414.4 391.5 APAC Fee-based operating expens
Slide 17: Reconciliation of Net Income (Loss) to Adjusted EBITDA
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA Three Months Ended Six Months Ended Twelve Months Ended (USD $m) December 31, December 31, December 31, June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 June 30, 2022 2021 2020 2019 Net income (loss) $97.2 $52.7 $142.7 $35.5 $357.2 $250.0
Slide 18: Reconciliation of Net Income to Adjusted Net Income
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME Three Months Ended Six Months Ended (USD $m, unless otherwise indicated) June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Net income $97.2 $52.7 $142.7 $35.5 Add/(less): Merger and acquisition-related depreciation and amortization 18.7 20.6