Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q3 2022 Earnings Presentation
18 slides from Cushman & Wakefield's earnings presentation, Nov 3, 2022
Slide 1: Cushman & Wakefield Q3 Earnings Presentation
CUSHMAN & WAKEFIELD Q 3 E A R N I N G S P R E S E N TAT I O N NOVEMBER 3, 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: Third Quarter 2022 Business Update
THIRD QUARTER 2022 BUSINESS UPDATE › Q3 fee revenue of $1.8 billion, up 8% versus Q3’21 - Leasing fee revenue up 16% year over year; Capital Markets fee revenue down 18% - PM/FM and Valuation & Other fee revenue up 14% & 5%, respectively, year over year › Q3 Adjusted EBITDA of $202 million, down 5%
Slide 5: Financial Overview
FINANCIAL OVERVIEW Hl | CUSHMAN & i WAKEFIELD
Slide 6: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS Three Months Ended › Fee revenue growth reflects strong Leasing and PM/FM (USD $m) % Change September 30, performance offset by lower Capital Markets activity in the 2022 2021 USD LC third quarter versus prior year Fee Revenue $1,777 $1,704 4% 8% - Leasing fee revenue grew 1
Slide 7: Q3 Fee Revenue by Segment and Service Line
Q3 FEE REVENUE BY SEGMENT AND SERVICE LINE Fee Revenue Segment Growth % of Fee Revenue LTM(1) Q3’22 1,777 8% 14% 1,704 243 255 12% 73% 208 6% 232 APAC EMEA Americas 13% › Strong revenue growth across all segments 1,229 1,314 7% Americas EMEA APAC › PM/FM growth driven by Project and Facilities Manag
Slide 8: Americas – Q3 Performance
AMERICAS – Q3 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue LTM Q3’22 1,314 7% 4% 1,229 48 4% 47 43% 223 (17)% 268 22% 425 20% Valuation and Other 356 Capital Markets Leasing 560 618 11% Prop, Fac and Proj Management Q3'21 Q3'22 LC Growth 31% Adj. EBITDA 161 166 3% Prop, Fac and Proj
Slide 9: EMEA – Q3 Performance
EMEA – Q3 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue LTM Q3’22 232 19% 38% 208 6% 43 40 8% 38 28 (14)% Valuation and Other 58 52 6% 18% Capital Markets Leasing Prop, Fac and Proj 92 88 13% Management Q3'21 Q3'22 LC Growth 25% Adj. EBITDA 29 25 7% Prop, Fac and Proj Management Leasi
Slide 10: APAC – Q3 Performance
APAC – Q3 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue LTM Q3’22 255 12% 12% 243 29 1% 30 12 (42)% 7% 24 41 (1)% 62% Valuation and Other 45 Capital Markets Leasing 172 27% 144 Prop, Fac and Proj Management 19% Q3'21 Q3'22 LC Growth Adj. EBITDA 30 12 (57)% Prop, Fac and Proj Managemen
Slide 11: Capital Structure
CAPITAL STRUCTURE Net Debt / Adj. EBITDA Debt Maturity Profile(1) 2,579 4.3x 2.8x 2.8x 2.5x 1,100 642 2022 2023 2024 2025 2026 2027 2028 2019 2020 2021 Q3'22 Term Revolver Senior Loan Secured Active Debt Portion Facilities Available Notes › Liquidity strong at $1.5 billion, with $381 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) September 30, 2022 December 31, 2021 December 31, 2020 December 31, 2019 2018 First Lien Loan(1) $2,578.9 $2,593.8 $2,613.7 $2,637.5 2020 Senior Secured Notes(2) 641.9 640.8 639.4 — Total Debt $3,220.8 $3,234.6 $3,253.1 $2,63
Slide 15: Summary of Total Segment Revenues
SUMMARY OF TOTAL SEGMENT REVENUES Three Months Ended Nine Months Ended Twelve Months Ended (USD $m) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 September 30, 2022 Americas Segment Property, facilities and project management $618.1 $559.5 $1,814.3 $1,633.3 $2,403.0 Lea
Slide 16: Summary of Total Costs and Expenses
SUMMARY OF TOTAL COSTS AND EXPENSES Three Months Ended Nine Months Ended (USD $m) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Americas Fee-based operating expenses $1,164.6 $1,069.5 $3,471.0 $2,926.0 EMEA Fee-based operating expenses 186.7 204.7 601.1 596.2 APAC Fee-b
Slide 17: Reconciliation of Net Income (Loss) to Adjusted EBITDA
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA Three Months Ended Nine Months Ended Twelve Months Ended (USD $m) September 30, September 30, September 30, September 30, September 30, December 31, December 31, December 31, 2022 2021 2022 2021 2022 2021 2020 2019 Net income (loss) $23.9 $68.7
Slide 18: Reconciliation of Net Income to Adjusted Net Income
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME Three Months Ended Nine Months Ended (USD $m, unless otherwise indicated) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Net income $23.9 $68.7 $166.6 $104.2 Add/(less): Merger and acquisition-related depreciation and a