Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q2 2023 Earnings Presentation
19 slides from Cushman & Wakefield's earnings presentation, Jul 31, 2023
Slide 1: Q2 2023 Earnings Presentation
Q2 2023 EARNINGS PRESENTATION JULY 31, 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: Second Quarter 2023 Business Update
Second Quarter 2023 Business Update(1) › Q2’23 fee revenue of $1.6 billion, down 14% versus Q2’22 ‒ PM/FM fee revenue grew 3%, demonstrating continued growth and resiliency ‒ Leasing and Capital Markets fee revenue declined 20% and 48%, respectively, in line with expectations ‒ Valuation & Other fee
Slide 5: Financial Overview
FINANCIAL OVERVIEW
Slide 6: Second Quarter Highlights
Second Quarter Highlights USD $m, except Three Months Ended June 30, % Change Adjusted EPS 2023 2022 USD LC Fee Revenue $1,633 $1,916 (15)% (14)% Adjusted EBITDA $146 $263 (44)% (44)% Adjusted EBITDA Margin 8.9% 13.7% (480) bps - Adjusted EPS (Diluted) $0.22 $0.63 n/m - › Q2’23 fee revenue decline r
Slide 7: Q2'23 Fee Revenue by Segment and Service Line
Q2’23 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 $1,916 $1,633 $869 $889 $553 $442 $367 $110 $192 $128 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'2
Slide 8: Americas Q2'23 Performance
Americas Q2’23 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $1,413 $605 $629 $1,176 $446 $346 $309 $164 $53 $38 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Growth % LC(1) (17)
Slide 9: EMEA Q2'23 Performance
EMEA Q2’23 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $249 $95 $94 $208 $64 $54 $46 $44 $42 $18 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Growth % LC(1) (17)% (3)% (17)% (
Slide 10: APAC Q2'23 Performance
APAC Q2’23 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $255 $249 $168 $166 $43 $42 $31 $30 $13 $10 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Growth % LC(1) 1% 1% 5% (15)% 2
Slide 11: Capital Structure
Capital Structure Net Debt / Adj. EBITDA Debt Maturity Profile(1) in USD $m 4.3x 4.3x $1,584 2.5x 2.8x 2.9x $1,100 $985 $643 $- $- 2019 2020 2021 2022 Q2'23 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 › Full Year Adjusted EBITDA Margins of 9-10% › Adjusted EBITDA Margin guidance based on the following full year 2023 revenue assumptions: › Low to mid single digit y/y growth in PM/FM revenue › Approximately 20% y/y declines in Brokerage › Increased our full year 2023 cost savings targe
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) June 30, 2023 December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 2018 First Lien Loan(1) $2,569.9 $2,573.9 $2,593.8 $2,613.7 $2,637.5 2020 Senior Secured Notes(2) 643.0 642.2 640.8 639
Slide 16: Summary of Total Segment Revenues
Summary of Total Segment Revenues Three Months Ended Six Months Ended Twelve Months Ended (USD $m) June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 June 30, 2023 Americas Segment Property, facilities and project management $628.7 $605.3 $1,257.0 $1,196.5 $2,494.9 Leasing 345.5 446.0 640.9 814
Slide 17: Summary of Total Costs and Expenses
Summary of Total Costs and Expenses Three Months Ended Six Months Ended (USD $m) June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Americas Fee-based operating expenses $1,067.0 $1,219.7 $2,093.2 $2,306.4 EMEA Fee-based operating expenses 191.4 213.9 377.0 414.4 APAC Fee-based operating expens
Slide 18: 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) June 30, June 30, June 30, June 30, June 30, December December December December 2023 2022 2023 2022 2023 31, 2022 31, 2021 31, 2020 31, 2019 Net income (loss) $5.1 $97.2 $(71.3) $
Slide 19: Reconciliation of Net Income (Loss) to Adjusted Net Income
Reconciliation of Net Income (Loss) to Adjusted Net Income Three Months Ended Six Months Ended (USD $m, unless otherwise indicated) June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net income (loss) $5.1 $97.2 $(71.3) $142.7 Add/(less): Merger and acquisition related depreciation and amortiza