Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q4 2022 Earnings Presentation
19 slides from Cushman & Wakefield's earnings presentation, Feb 23, 2023
Slide 1: Q4 2022 Earnings Presentation
Q4 2022 EARNINGS PRESENTATION FEBRUARY 23, 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: Fourth Quarter and Full Year 2022 Business Update
Fourth Quarter and Full Year 2022 Business Update(1) Full Year Key 2022 Highlights › FY fee revenue of $7.2 billion, up 8% versus 2021 › Achieved double digit growth in PM/FM, highlighting its strength and resiliency ‒ Leasing fee revenue up 15% › Executed six in-fill acquisitions in strategic growt
Slide 5: Financial Overview
FINANCIAL OVERVIEW
Slide 6: Fourth Quarter and Full Year Highlights
Fourth Quarter and Full Year Highlights Three Months Ended % Change Twelve Months Ended % Change USD $m, except December 31, December 31, Adjusted EPS 2022 2021 USD LC 2022 2021 USD LC Fee Revenue $1,850 $2,220 (17)% (14)% $7,248 $6,891 5% 8% Adjusted EBITDA $220 $348 (37)% (35)% $899 $886 1% 4% Adj
Slide 7: Q4 Fee Revenue by Segment and Service Line
Q4 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 $2,220 $852 $893 $640 $1,850 $558 $572 $157 $131 $268 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 G
Slide 8: Americas Q4 Performance
Americas Q4 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $1,600 $589 $620 $1,314 $477 $431 $470 $214 $65 $50 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Growth % LC(1) (18)% 6
Slide 9: EMEA Q4 Performance
EMEA Q4 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $322 $255 $103 $97 $86 $68 $75 $58 $51 $40 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Growth % LC(1) (11)% 6% (11)% (41)%
Slide 10: APAC Q4 Performance
APAC Q4 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $297 $281 $160 $177 $77 $59 $26 $34 $30 $15 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Growth % LC(1) 2% 19% (16)% (38)%
Slide 11: Capital Structure
Capital Structure Net Debt / Adj. EBITDA Debt Maturity Profile(1) in USD $m 4.3x $1,574 2.5x 2.8x 2.9x $1,100 $1,000 $642 2019 2020 2021 2022 2022 2023 2024 2025 2026 2027 2028 2029 2030 Term Loan B Undrawn Revolving Term Loan B Senior Secured Notes (’25 Maturity) Credit Facility (’30 Maturity) › Li
Slide 12: 2023 Outlook
2023 Outlook › PM/FM revenue expected to show consistent growth throughout year in the low to mid single digits › Challenging macro-environment impacting line of sight to brokerage revenue trends › Brokerage decline in first half of 2023 expected to be similar to the fourth quarter of 2022 › Anticip
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 (USD $m, unless otherwise indicated) December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 2018 First Lien Loan(1) $2,573.9 $2,593.8 $2,613.7 $2,637.5 2020 Senior Secured Notes(2) 642.2 640.8 639.4 — Total Debt $3,216.1 $3,234.6 $3,253.1 $2,637
Slide 16: Summary of Total Segment Revenues
Summary of Total Segment Revenues Three Months Ended Twelve Months Ended (USD $m) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Americas Segment Property, facilities and project management $619.7 $588.5 $2,434.0 $2,221.9 Leasing 430.6 476.5 1,669.7 1,392.8 Capital markets 2
Slide 17: Summary of Total Costs and Expenses
Summary of Total Costs and Expenses Three Months Ended Twelve Months Ended (USD $m) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Americas Fee-based operating expenses $1,179.4 $1,355.8 $4,650.3 $4,281.8 EMEA Fee-based operating expenses 226.4 268.5 827.6 864.7 APAC Fee-bas
Slide 18: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA Three Months Ended Twelve Months Ended (USD $m) December 31, December 31, December 31, December 31, December 31, December 31, 2022 2021 2022 2021 2020 2019 Net income (loss) $29.8 $145.8 $196.4 $250.0 $(220.5) $0.2 Add/(less): Depreciation and a
Slide 19: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income Three Months Ended Twelve Months Ended (USD $m, unless otherwise indicated) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net income $29.8 $145.8 $196.4 $250.0 Add/(less): Merger and acquisition related depreciation and am