Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q1 2023 Earnings Presentation
19 slides from Cushman & Wakefield's earnings presentation, May 4, 2023
Slide 1: Q1 2023 Earnings Presentation
Q1 2023 EARNINGS PRESENTATION MAY 4, 2023 CUSHMAN & WAKEFIELD /1
Slide 2: Cautionary Note on Forward Looking Statements
Cautionary Note on Forward Looking Statements All statements in this presentation other than historical facts are forward-looking statements, which rely on a number of estimates, projections and assumptions concerning future events. Such statements are also subject to a number of uncertainties and f
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: First Quarter 2023 Business Update
First Quarter 2023 Business Update(1) › Q1’23 fee revenue of $1.5 billion, down 10% versus Q1’22 ‒ PM/FM fee revenue grew 8%, demonstrating continued growth and resiliency ‒ Leasing and Capital Markets fee revenue declined 19% and 50%, respectively ‒ Valuation & Other fee revenue declined 12% › Q1’2
Slide 5: Financial Overview
FINANCIAL OVERVIEW
Slide 6: First Quarter Highlights
First Quarter Highlights USD $m, except Three Months Ended March 31, % Change Adjusted EPS 2023 2022 USD LC Fee Revenue $1,504 $1,705 (12)% (10)% Adjusted EBITDA $61 $214 (72)% (71)% Adjusted EBITDA Margin 4.0% 12.6% (853) bps - Adjusted EPS (Diluted) $(0.04) $0.48 n/m - › Q1’23 fee revenue decline
Slide 7: Q1'23 Fee Revenue by Segment and Service Line
Q1’23 Fee Revenue by Segment and Service Line In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $1,705 $897 $841 $1,504 $455 $363 $289 $143 $120 $102 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'2
Slide 8: Americas Q1'23 Performance
Americas Q1’23 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $1,248 $591 $628 $1,076 $368 $295 $241 $47 $119 $33 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Growth % LC(1) (14)
Slide 9: EMEA Q1'23 Performance
EMEA Q1’23 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $94 $87 $215 $183 $49 $40 $44 $42 $29 $14 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Growth % LC(1) (10)% (2)% (14)% (
Slide 10: APAC Q1'23 Performance
APAC Q1’23 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $246 $182 $242 $156 $37 $29 $27 $27 $19 $10 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Growth % LC(1) 6% 20% (23)% (42
Slide 11: Capital Structure
Capital Structure Net Debt / Adj. EBITDA Debt Maturity Profile(1) in USD $m 4.3x 3.7x $1,584 2.5x 2.8x 2.9x $1,100 $985 $643 $- $- 2019 2020 2021 2022 Q1'23 LTM 2023 2024 2025 2026 2027 2028 2029 2030 Term Loan B Undrawn Revolving Term Loan B Senior Secured Notes (’25 Maturity) Credit Facility (’30
Slide 12: 2023 Outlook
2023 Outlook › PM/FM revenue expected to grow in the low to mid single digits › Brokerage decline in second quarter of 2023 expected to be similar to previous two quarters › Full Year Adjusted EBITDA Margins of 9-10% › On track to achieve previously communicated $90m of in-year gross cost savings th
Slide 13: Q&A
Q&A
Slide 14: Supplemental Slides and Reconciliations of GAAP to Non-GAAP Financial Measures
SUPPLEMENTAL SLIDES AND RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
Slide 15: Debt and Leverage
Debt and Leverage Twelve Months Ended Twelve Months Ended (USD $m, unless otherwise indicated) March 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 2018 First Lien Loan(1) $2,568.7 $2,573.9 $2,593.8 $2,613.7 $2,637.5 2020 Senior Secured Notes(2) 642.6 642.2 640.8 63
Slide 16: Summary of Total Segment Revenues
Summary of Total Segment Revenues Three Months Ended Twelve Months (USD $m) Ended March 31, 2023 March 31, 2022 March 31, 2023 Americas Segment Property, facilities and project management $628.4 $591.1 $2,471.5 Leasing 295.4 368.2 1,596.8 Capital markets 118.8 241.3 864.5 Valuation and other 33.0 47
Slide 17: Summary of Total Costs and Expenses
Summary of Total Costs and Expenses Three Months Ended (USD $m) March 31, 2023 March 31, 2022 Americas Fee-based operating expenses $1,029.4 $1,086.7 EMEA Fee-based operating expenses 186.1 200.5 APAC Fee-based operating expenses 247.0 222.8 Cost of gross contract reimbursables 745.3 626.2 Segment o
Slide 18: Reconciliation of Net (Loss) Income to Adjusted EBITDA
Reconciliation of Net (Loss) Income to Adjusted EBITDA Three Months Ended Twelve Months Ended (USD $m) March 31, March 31, March 31, December 31, December 31, December 31, December 31, 2023 2022 2023 2022 2021 2020 2019 Net (loss) income $(76.4) $45.5 $74.5 $196.4 $250.0 $(220.5) $0.2 Add/(less): De
Slide 19: Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income
Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income Three Months Ended (USD $m, unless otherwise indicated) March 31, 2023 March 31, 2022 Net (loss) income $(76.4) $45.5 Add/(less): Merger and acquisition related depreciation and amortization 18.1 19.3 Unrealized loss on investments, n