Slide 1: Q3 2022 Earnings Conference Call
Q3 2022 Earnings Conference Call NASDAQ: EQIX Presented on November 2, 2022 © 2022 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: Q3 2022 Financial Highlights
Q3 2022 Financial Highlights Revenues Recurring Revenues Non-recurring Revenues Revenues Growth Q3 22 QoQ YoY ($M) $1,817 $1,841 $1,675 $1,706 $1,734 As-reported 1% 10% Revenues from Acquisitions: Entel: $11M MainOne: $19M Normalized and (1) 2% 11% $1,707 $1,748 Constant Currency $1,564 $1,603 $1,64
Slide 4: Q3 2022 Consolidated Results
Q3 2022 Consolidated Results $M except for AFFO per Share and Q3 22 Non-Financial Metrics Guidance Actual QoQ YoY Revenues (1) $1,827 - 1,847 $1,841 1% 10% Cash Gross Profit $1,230 1% 11% Cash Gross Margin % 66.8% Cash SG&A $359 0% 11% Cash SG&A % 19.5% Adjusted EBITDA(2) $831 - 851 $871 1% 11% Adju
Slide 5: Americas Performance
Americas Performance Revenues ($M) Q3 22 Revenues Growth $846 QoQ YoY $800 $831 $763 $782 As-reported 2% 11% Normalized and (1) 2% 10% Constant Currency (2) Normalized MRR 2% 11% Adjusted EBITDA Q3 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Growth QoQ YoY Adjusted EBITDA As-reported 5% 23% Adjusted EBITDA Adj
Slide 6: EMEA Performance
EMEA Performance Revenues Revenues Q3 22 ($M) (3) Growth QoQ YoY $599 $592 $545 $553 $550 As-reported 1% 9% Normalized and (1) 0% 8% Constant Currency (2) Normalized MRR 3% 10% Adjusted EBITDA Q3 22 (3) Growth QoQ YoY Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Adjusted EBITDA As-reported 4% 6% Adjusted EBITDA Ad
Slide 7: Asia-Pacific Performance
Asia-Pacific Performance Revenues Revenues Q3 22 ($M) Growth QoQ YoY $403 $384 $387 $367 $371 As-reported 4% 10% Normalized and (1) 6% 17% Constant Currency (2) Normalized MRR 6% 19% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Adjusted EBITDA Q3 22 Growth QoQ YoY (4) Adjusted EBITDA As-reported 2% 2% Adjusted EBI
Slide 8: Capital Structure
Capital Structure (1)(2) Capital Market Updates Available Liquidity • In October 2022, S&P affirmed our BBB rating and increased their debt tolerance by one leverage turn, $6.4B increasing balance sheet flexibility Ratings • In Q3, we raised $404M in net proceeds through ATM spot sales, as well as s
Slide 9: Capital Expenditures
Capital Expenditures Recurring Capital Expenditures 5.0% ($M) $86 2.8% 5% 8% 2.7% • Recurring capital expenditures have 1.9% historically trended between 2% and 5% of $48 1.4% $50 revenues, annually 13% 16% 12% $35 87% $24 22% 36% • Maintenance capital expenditures can vary by 16% quarter based on m
Slide 10: Stabilized Data Center Growth
(1) (2) Stabilized Data Center Growth Stabilized, Expansion & New Data Centers Stabilized Data Center Profitability ($M) Last Quarter $13,132 $5,277 $3,646 $107 Reported # of Data Centers Q3 22 Revenues ($M) 29% annual Cash Gross 11 Expansion: Profit on Gross PP&E 21% (3) investment (5) $386 59 Grow
Slide 11: 2022 Financial Guidance
(1) 2022 Financial Guidance ($M except AFFO per Share) FY 2022 Q4 2022 (2) (3) Revenues $7,240 - 7,260 $1,848 - 1,868 (4) (5) Adjusted EBITDA $3,352 - 3,372 $821 - 841 Adjusted EBITDA Margin % ~46% 44 - 45% Recurring Capital Expenditures $185 - 195 $76 - 86 % of revenues ~3% 4 - 5% Non-recurring Cap
Slide 12: FY22 Guidance
FY22 Guidance (2) Revenues Adjusted EBITDA Raise revenues guidance by $15M against FX headwind of $44M Raise adjusted EBITDA guidance by $46M against FX headwind of $22M ($M) 46.4% Normalized 45.9% As-reported Margin (1) Constant Currency 10 - 11% YoY Growth Margin excl. Integration 46.6% 46.3% Cost
Slide 13: Q4 22 Guidance
Q4 22 Guidance Revenues Adjusted EBITDA As-reported Margin 47.3% 47.6% 45.1% 44.7% ($M) 2 - 3% (2) - (4)% $1,848 - 1,868 $871 ($7) $864 $1,841 $827 - 847 ($6) $821 - 841 ($26) $1,815 (1) (1) (2) (3) (4) Q3 22 Normalizing Q3 22 Q4 22 Guidance Q3 22 Normalizing Q3 22 Q4 22 Guidance Integration Q4 22 R
Slide 14: FY22 AFFO and AFFO per Share Guidance
(1)(2) FY22 AFFO and AFFO per Share Guidance (3) Raise AFFO by $52M against FX headwind of $17M; AFFO per share growth of 9 - 10% Share Count (Diluted) (4) AFFO per Share (Diluted) Normalized AFFO Constant Currency 10 - 11% YoY Growth 90.4M 91.6M 91.9M 1 Raise AFFO guidance; against FX headwinds $27
Slide 15: Dividend Outlook
Dividend Outlook Annual Cash Dividend ~10% ($M) +10% ~$1,137 $1,030 $936 $826 $727 2022E Cash Dividend of ~$1,137M • Expected growth of our annual cash dividend consistent with our strong operating 44% 43% 43% 42% 43% 42% performance Payout Payout Payout Payout Payout Ratio Ratio Ratio Ratio Ratio 2
Slide 16: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data All the Right All the Right All the Right PLACES PARTNERS POSSIBILITIES Place Infrastructure Connect to Everything Seize Opportunity with Wherever You Need It You Need to Succeed Agility, Speed and Confidence Global Footprint Global Ecosystem Experience 249
Slide 17: Equinix Overview
Equinix Overview (1) • Global footprint: 249 data centers in 71 metros Unique Portfolio of Data • Network dense: ~2,100 networks; 100% of Tier 1 Network Routes Center Assets • Cloud dense: 3,000+ Cloud & IT service providers • Interconnected ecosystems: 443,000+ Total Interconnections • 2022 expecte
Slide 18: Pressing Our Advantage in All Markets
Pressing Our Advantage in All Markets Equinix global reach expands to 71 metro areas and 32 countries 6 Continents 32 Countries 71 Metro areas 249 Data centers AMERICAS EMEA ASIA-PACIFIC 29 Metros 29 Metros 13 Metros % of Customers in Platform Equinix • Geographic footprint is 107 Data Centers 91 Da
Slide 19: xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership
xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership Phase Phase Phase Cost JV Status Capacity Leasing Opening ($M) (MW) (MW) Recent Activity Mexico City 3x-1 JV Ready Q4 2022 $61 4 0 Americas • Continued momentum in the quarter: São Paulo 5x-2 JV Q4 2022 $17 2 2 o Delivered 17MW with ope
Slide 20: Customer Revenues Mix
Customer Revenues Mix Diversified Revenues across Customer, Region and Industry segments Customers and Churn (1) Q3 22 Revenues Mix Top 10 Customers Rank Type of Customer %MRR Region Count IBX Count 1 Cloud & IT 2.5% 3 74 2 Cloud & IT 2.4% 3 70 EMEA 3 Cloud & IT 2.3% 3 52 Enterprise 32% 35% INT 4 Ne
Slide 21: Non-Financial Metrics
Non-Financial Metrics (1) FY 2021 FY 2022 Q3 Q4 Q1 Q2 Q3 QoQ Interconnections Americas 184,800 185,400 189,400 192,100 194,600 2,500 EMEA 149,100 151,500 154,300 157,200 160,700 3,500 Asia-Pacific 80,500 82,300 84,500 86,500 87,800 1,300 Total Interconnections 414,400 419,200 428,200 435,800 443,100
Slide 22: Equinix Announced Retail IBX Expansions AMER / APAC
Equinix Announced Retail IBX Expansions AMER / APAC Expansion Highlights • We have 46 major builds underway across 31 markets in 21 countries including 10 xScale builds • We had 8 openings in 8 metros – Frankfurt, Istanbul, London, Madrid, Manchester, Melbourne, Paris and Toronto in the quarter • Es
Slide 23: Equinix Announced Retail IBX Expansions EMEA
Equinix Announced Retail IBX Expansions EMEA (1) Cabinet Equivalent 2023 2024 Total Capex(1) Capacity In IBX Data Center Status Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 $US millions Ownership Future Phases ML5 phase 2 (Milan) Open 525 $28 Owned IL2 phase 3 (Istanbul) Open 550 $15 Owned MA5 phase 1 (Manchester)
Slide 24: Real Estate Ownership and Long-Term Leases
Real Estate Ownership and Long-Term Leases (1) Own 135 of 249 Data Centers, totaling 19.4M of 29.4M total gross square feet Recurring Revenues by Global Lease Portfolio Expiration Waterfall (3) Ownership (2) % Leases Renewing by Square Footage Last Possible Expiration Date 69% Owned Lease 61% >=2037
Slide 25: Same Store Operating Performance
Same Store Operating Performance (1) Revenues ($M) Cash Cost, Gross Profit and PP&E ($M) Cash Cost Trailing 4-Qtr Inter- Services/ Total Non- Total of Cash Gross Cash Gross Gross Cash Return on Category Colocation connection Other Recurring recurring Revenues Revenues Profit Margin % PP&E Gross PP&E
Slide 26: Consolidated Portfolio Operating Performance
Consolidated Portfolio Operating Performance (1) Cabinets Billed Q3 22 Revenues ($M) Total Cabinet Owned % of # of Data Cabinet Cabinets Utilization Total Total Category Centers Capacity Billed % Recurring Recurring Americas Owned (2) 58 97,000 76,400 79% $545 Leased 43 37,200 31,000 83% $218 Americ
Slide 27: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New Acquisition xScale Owned Leased Atlanta 5 AT2, AT3, AT4, AT5 AT1 AT4 AT1, AT2, AT3, AT5 Change Summary (1) (2) (3) Bogota 1 BG1 BG1 Boston 1 BO2 BO2 Calgary 3 CL1, CL2 CL3 CL3 CL1, CL2 Entel (Peru) Acquisition Chicago 5 CH1, CH2,
Slide 28: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New Acquisition xScale Owned Leased Abidjan 1 Abidjan 1 Abidjan 1 Abu Dhabi 1 AD1 AD1 Accra 1 Accra 1 Accra 1 Change Summary (1) (2) (3) Amsterdam 9 AM1, AM2, AM3, AM5, AM6, AM8 AM4, AM7, AM11 AM1*, AM2*, AM3*, AM4*, AM5, AM6, AM7* A
Slide 29: Adjusted Corporate NOI
(1) Adjusted Corporate NOI ($M, except # of Data Centers) Calculation Of Adjusted Corp NOI Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 # of Data Centers (1) 239 238 232 232 230 Recurring Revenues (2) $1,713 $1,676 $1,618 $1,581 $1,545 Recurring Cash Cost of Revenues Allocation (524) (516) (508) (497) (4
Slide 30: Adjusted NOI Composition – Organic
Adjusted NOI Composition – Organic (1) Q3 2022 Q3 2022 # of Total Cabinet Recurring Quarterly Data Cabinet Cabinets Utilization Revenues Adjusted NOI Category Centers Capacity Billed % ($M) ($M) % NOI Stabilized Owned (2) 69 140,700 124,500 88% $762 $512 49% Leased 91 93,900 81,700 87% $531 $315 30%
Slide 31: Components of Net Asset Value
Components of Net Asset Value Operating Portfolio Q3 22 Quarterly Ownership Reference Adjusted NOI Adjusted NOI ($M) Stabilized Owned Adjusted NOI Segments $512 Stabilized Leased Adjusted NOI Segments $315 Expansion Owned Adjusted NOI Segments $128 Expansion Leased Adjusted NOI Segments $69 Other Re
Slide 32: Shares Forecast
Shares Forecast (M) Fully Diluted Weighted Average Shares Common Stock Outstanding 92.5 ~92.6 0.4 -1.0 ~91.9 91.0 91.1 1.2 90.6 90.0 0.8 1.7 1.7 90.6 1.4 1.4 1.4 Shares Est. Employee ATM Offering Est. Shares Est. Weighted Est. Weighting Est. Fully Diluted Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Outstanding @
Slide 33: Capital Expenditures Profile
Capital Expenditures Profile Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 ($M) Recurring IBX Maintenance 24 21 10 75 36 Sustaining IT & Network 18 6 6 4 6 Re-configuration Installation 8 8 8 7 6 Subtotal - Recurring 50 35 24 86 48 Non-Recurring IBX Expansion 377 325 256 520 487 Transform IT, Network & Of
Slide 34: FX Rates, Hedging and Currencies
FX Rates, Hedging and Currencies (4) Currency % of Revenues Revenue FX Rates (1) Blended (2) (4) (4) Guidance Blended (2) % of (3) CHF GBP Currency Hedge Rate Guidance 1% Rate Hedge % Revenues EUR 8% HKD Rate USD 1.00 40% 17% 3% AUD EUR to USD 0.98 1.19 1.11 65% 17% 4% GBP to USD 1.12 1.36 1.28 67%
Slide 35: The Three Pillars of ESG
(1) The Three Pillars of ESG Our Future First sustainability strategy inspires us to dream of a better future. Environment Social Governance Do more for each Do what it takes to Do what’s right to other to unleash protect the planet lead the way potential ▪ First data center to set a ▪ Building a Di
Slide 36: Industry Analyst Reports
Industry Analyst Reports Solution Category Reports • Datacenter Colocation & Interconnection Services 2021 Vendor Assessment – IDC, 6/21 Interconnection • Equinix: The Global Digital Platform Facilitator – IDC, 1/21 • Digital Services Total Economic Impact (TEI) – Forrester, 9/22 • Workload placemen
Slide 37: Equinix Leadership and Investor Relations
Equinix Leadership and Investor Relations Executive Team Equinix Investor Relations Contacts Equity Research Analysts Katrina Rymill Bank of America David Barden SVP, Corporate Finance and Sustainability Barclays Brendan Lynch 650-598-6583 BMO Capital Markets Ari Klein krymill@equinix.com Citigroup
Slide 38: Appendix: Non-GAAP Financial Reconciliations & Definitions
Appendix: Non-GAAP Financial Reconciliations & Definitions © 2022 Equinix.com 38
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION Three Months Ended (unaudited and in thousands) September 30, 2022 June 30, 2022 September 30, 2021 We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stoc
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION Three Months Ended September June 30, March 31, December 31, September (unaudited and in thousands) 30, 2022 2022 2022 2021 30, 2021 The geographic split of our adjusted EBITDA is presented below: Americ
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION Three Months Ended September June 30, March 31, December 31, September (unaudited and in thousands) 30, 2022 2022 2022 2021 30, 2021 Asia-Pacific net income $ 80,812 $ 76,405 $ 68,877 $ 14,502 $ 93,166 A
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2022 Equinix.com 42
Slide 43: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands, except per share amounts) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Net income $ 211,739 $ 216,242 $ 147,693 $ 123,141 $ 152,026 Net (income) loss attributable to non-controlling interests 68 80 (240) 133 190 Net income attributable to Equinix 211,
Slide 44: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands, except per share amounts) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 FFO per share: Basic $ 5.31 $ 5.47 $ 4.77 $ 4.51 $ 4.54 Diluted $ 5.30 $ 5.46 $ 4.75 $ 4.48 $ 4.51 AFFO per share: Basic $ 7.75 $ 7.59 $ 7.19 $ 6.25 $ 6.99 Diluted $ 7.73 $ 7.58 $
Slide 45: Non-GAAP Reconciliations
Non-GAAP Reconciliations Consolidated NOI calculation Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 (unaudited and in thousands) Revenues $ 1,840,659 $ 1,817,154 $ 1,734,447 $ 1,706,378 $ 1,675,176 (1) Non-Recurring Revenues (NRR) 85,014 82,987 83,844 85,766 97,808 Other Revenues (2) 43,096 58,579 32,770
Slide 46: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Income from Operations $ 333,159 $ 317,853 $ 267,316 $ 249,725 $ 282,121 Adjustments: Depreciation, Amortization and Accretion Expense 431,668 432,828 436,386 428,764 419,684 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, Data Center growth, REIT and Capital Expenditures
Definitions: Non-financial Metrics, Data Center growth, REIT and Capital Expenditures Non-Financial Metrics MRR per Cab: Monthly recurring revenues per billed cabinet: (current quarter recurring revenues / 3) divided by ((quarter end cabinets billing prior quarter + quarter end cabinets billing curr
Slide 49: © 2022 Equinix.com
ull FQUINIX WHERE OPPORTUNITY CONNECTS