Equinix, Inc. · NASDAQ:EQIX

Equinix — Q4 2021 Earnings Presentation

50 slides from Equinix's earnings presentation, Feb 16, 2022

  1. Slide 1: Q4 2021 Earnings Conference Call

    Q4 2021 Earnings Conference Call NASDAQ: EQIX Presented on February 16, 2022 © 2022  Equinix.com 1

  2. 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

  3. Slide 3: 2021 Financial Highlights

    2021 Financial Highlights Revenues Recurring Revenues Non-recurring Revenues Revenues Growth Q4 21 FY21 $6,636 QoQ YoY YoY ($M) $5,999 $5,562 $5,072 As-reported 2% 9% 11% $4,368 Normalized and (1) 2% 10% 8% $5,658 $6,220 Constant Currency $4,777 $5,238 $4,120 (1) Normalized MRR 3% 10% 7% (3) FY17 FY

  4. Slide 4: Q4 2021 Consolidated Results

    Q4 2021 Consolidated Results $M except for AFFO per Share and Q4 21 FY21 Non-Financial Metrics Guidance Actual QoQ YoY Guidance Actual YoY (1) Revenues $1,685 - 1,705 $1,706 2% 9% $6,614 - 6,634 $6,636 11% Cash Gross Profit $1,128 2% 10% $4,438 11% Cash Gross Margin % 66.1% 66.9% Cash SG&A $341 5% 9

  5. Slide 5: Americas Performance

    Americas Performance Revenues ($M) Q4 21 Revenues Growth $763 $782 QoQ YoY $726 $751 $712 As-reported 2% 10% Normalized and (1) 3% 10% Constant Currency (1) Normalized MRR 3% 10% Adjusted EBITDA Q4 21 Q4 20 Q1 21 Q2 21 Q321 Q4 21 Growth QoQ YoY Adjusted EBITDA As-reported 4% 12% Adjusted EBITDA Adju

  6. Slide 6: EMEA Performance

    EMEA Performance Revenues Revenues Q4 21 ($M) Growth QoQ YoY $545 $553 $538 $511 $519 As-reported 1% 8% Normalized and (1) 2% 8% Constant Currency (1) Normalized MRR 2% 9% Adjusted EBITDA Q4 21 (2) Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Growth QoQ YoY Adjusted EBITDA As-reported 3% 9% Adjusted EBITDA Adjuste

  7. Slide 7: Asia-Pacific Performance

    Asia-Pacific Performance Revenues Revenues Q4 21 ($M) Growth QoQ YoY $369 $367 $371 $341 $351 As-reported 1% 9% Normalized and (1) 1% 10% Constant Currency (1) Normalized MRR 3% 11% Adjusted EBITDA Q4 21 (4) (4) Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Growth QoQ YoY Adjusted EBITDA As-reported 2% 11% Adjusted

  8. Slide 8: Capital Structure

    Capital Structure Recent Capital Markets Activity (1)(2) Available Liquidity • In January, we refinanced our existing credit facility with a new $4B revolver and £500M Term Loan, both of which will mature on January 7, 2027 $3.4B Ratings • Raised $400M in gross proceeds at an average net price of $7

  9. Slide 9: Capital Expenditures

    Capital Expenditures Recurring Capital Expenditures 5.0% 4.8% ($M) $86 • Recurring capital expenditures have $74 8% 2.7% 2.8% 5% historically trended between 2% and 5% of 10% 5% revenues, annually $45 $48 17% 13% • Maintenance capital expenditures can vary by 1.3% 12% 87% 85% 17% quarter based on ma

  10. Slide 10: Stabilized IBX Growth

    (1) (2) Stabilized IBX Growth Stabilized, Expansion & New IBXs Stabilized IBX Profitability ($M) Last Quarter $12,355 $4,765 $3,292 $109 Reported # of IBXs Q4 21 Revenues ($M) $14,000 $12,598 27% annual Cash Gross $12,000 13 Expansion: Profit on Gross PP&E 16% (3) investment (5) $402 $10,000 Growth

  11. Slide 11: 2022 Financial Guidance

    (1) 2022 Financial Guidance ($M except AFFO per Share) FY 2022 Q1 2022 (2) (3) Revenues $7,202 - 7,252 $1,726 - 1,746 (4) (5) Adjusted EBITDA $3,307 - 3,337 $781 - 801 Adjusted EBITDA Margin % ~46% 45 - 46% Recurring Capital Expenditures $158 - 168 $19 - 29 % of revenues ~2% 1 - 2% Non-recurring Cap

  12. Slide 12: FY22 Revenues Guidance

    FY22 Revenues Guidance Accelerating growth of 9 - 10%, ahead of long-term targets on strong net bookings momentum (2) 9 - 10% Normalized Constant Currency (1) ~+9% ($M) YoY Growth 8% $7,202 – 7,252 (1) +11% 8% $6,636 +8% $5,999 $5,562 FY19 Reported FY20 Reported FY21 Reported FY22 Guidance (1) Norma

  13. Slide 13: FY22 Adjusted EBITDA Guidance

    FY22 Adjusted EBITDA Guidance Strong operating leverage offset by transitory power pricing impact and strategic investments 47.4% As-reported Margin 46.0% 47.6% Margin ex. Integration Costs 46.2% Includes -130 bps impact from temporarily inflated power rates in Singapore and the lapping of favorable

  14. Slide 14: Q1 22 Guidance

    Q1 22 Guidance Revenues Adjusted EBITDA As-reported Margin 46.2% 46.5% 45.8% 45.6% ($M) +1 - 3% $1,726 – 1,746 ~+1% $786 - 806 $792 $781 - 801 $788 -$5 $4 $1,706 -$3 $1,703 (1) (1) (2) (4) Q4 21 Normalizing Q4 21 Q1 22 Q4 21 Normalizing Q4 21 Q1 22 Integration Q1 22 Reported Normalized Guidance Repo

  15. Slide 15: FY22 AFFO and AFFO per Share Guidance

    (1) FY22 AFFO and AFFO per Share Guidance Normalized AFFO growth of 8 - 10% and AFFO per share growth of 7 - 8% Share Count (Diluted) ($M except AFFO per Share) AFFO per Share (Diluted) AFFO (2) 8 - 10% Normalized Constant Currency YoY Growth 84.7M 88.4M 90.4M 91.6M 91.6M $22.81 $24.76 $27.11 $29.09

  16. Slide 16: Dividend Outlook

    Dividend Outlook Annual Cash Dividend ($M) ~10% +10% ~$1,129 $1,030 $936 $826 $727 2022E Cash Dividend of ~$1,129M • Continued growth of our annual cash dividend amount consistent with strong 44% 43% 43% 42% 42% Payout Payout Payout Payout Payout operating performance Ratio Ratio Ratio Ratio Ratio 2

  17. Slide 17: 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 240

  18. Slide 18: Equinix Overview

    Equinix Overview (1) • Global footprint: 240 data centers in 66 metros Unique Portfolio of Data • Network dense: 2,000+ networks; 100% of Tier 1 Network Routes Center Assets • Cloud dense: ~3,000 Cloud & IT service providers • Interconnected ecosystems: 419,000+ Total Interconnections • 2022 expecte

  19. Slide 19: Pressing Our Advantage in All Markets

    Pressing Our Advantage in All Markets Equinix global reach expanding across 66 metro areas and 27 countries (2) 5 Continents 27 Countries 66 Metro areas 240 Data centers AMERICAS EMEA ASIA-PACIFIC % of Customers in Platform Equinix 27 Metros 13 Metros • Geographic footprint is 26 Metros (1) 104 Data

  20. Slide 20: 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) Open $52 5 5 Q4 2021 Leasing Activity São Paulo 5x JV Q4 2022 $17 2 2 Americas • Leased 12 MW of Frankfurt 11x Mexico City 3x-1 JV Ready Q2 2022 $58 4 0 • Leased 7

  21. Slide 21: Customer Revenues Mix

    Customer Revenues Mix Diversified Revenues across Customer, Region and Industry segments Customers and Churn Revenues Mix Top 10 Customers (5) Rank Type of Customer %MRR Region Count IBX Count 1 Cloud & IT Services 2.6% 3 70 2 Cloud & IT Services 2.5% 3 72 EMEA 3 Cloud & IT Services 2.3% 3 55 Enterp

  22. Slide 22: Non-Financial Metrics

    Non-Financial Metrics (1) FY 2020 FY 2021 Annual (2) Organic Total Underlying Acquisitions & Q4 Q1 Q2 Q3 Q4 Reconciliation Q4 QoQ Interconnections Americas 162,800 165,000 167,100 168,900 170,300 (1,800) 168,500 1,400 EMEA 132,500 133,700 135,800 137,600 139,400 - 139,400 1,800 Asia-Pacific 67,200 6

  23. Slide 23: Equinix Announced Retail IBX Expansions

    Equinix Announced Retail IBX Expansions Cabinet(1) 2021 2022 2023 Total Capex(1) Equivalent Capacity In Expansion Highlights IBX Data Center Status Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 $US millions Ownership Future Phases DC15 phase 2 (Washington D.C.) Open 1,600 $48 Owned - • We have 41 major builds underway

  24. Slide 24: Long-Term Lease Renewals

    Long-Term Lease Renewals Weighted average lease maturity of greater than 18 years including extensions (1) Global Lease Portfolio Expiration Waterfall Equinix Owned Sites (2, 3) % Leases Renewing by Square Footage • Own 122 of 240 Data Centers Last Possible Expiration Date 65% • 17.9M of 28.1M total

  25. 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

  26. Slide 26: Consolidated Portfolio Operating Performance

    Consolidated Portfolio Operating Performance (1) Cabinets Billed Q4 21 Revenues ($M) Total Cabinet Owned % of Cabinet Cabinets Utilization Total Total Category # of IBXs Capacity Billed % Recurring Recurring Americas (2) Owned 58 97,900 72,400 74% $501 Leased 45 38,100 30,700 81% $214 Americas Total

  27. 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) Bogota 1 BG1 BG1 Boston 1 BO2 BO2 Calgary 3 CL1, CL2 CL3 CL3 CL1, CL2 Bell Canada assets Chicago 5 CH1, CH2, CH4, CH7 CH3

  28. Slide 28: Data Center Portfolio Composition

    Data Center Portfolio Composition Metro Count Stabilized Expansion New Acquisition xScale Owned Leased Abu Dhabi 1 AD1 AD1 Change Summary (1) (2) (3) Amsterdam 9 AM1, AM2, AM3, AM5, AM6, AM8 AM4, AM7, AM11 AM1*, AM2*, AM3*, AM4*, AM5, AM6, AM7* AM8, AM11 Barcelona 1 BA1 BA1 Bordeaux 1 BX1 BX1 New IB

  29. Slide 29: Adjusted Corporate NOI

    (1) Adjusted Corporate NOI ($M, except # of IBXs) Calculation Of Adjusted Corp NOI Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 # of IBXs (1) 232 230 225 224 225 Recurring Revenues (2) $1,581 $1,545 $1,529 $1,497 $1,453 Recurring Cash Cost of Revenues Allocation (497) (471) (454) (434) (466) Cash Net Ope

  30. Slide 30: Adjusted NOI Composition – Organic

    Adjusted NOI Composition – Organic (1) Q4 2021 Q4 2021 Total Cabinet Recurring Quarterly # of Cabinet Cabinets Utilization Revenues Adjusted NOI Category IBXs Capacity Billed % ($M) ($M) % NOI Stabilized Owned (2) 63 123,300 107,500 87% $624 $405 42% Leased 95 100,100 85,700 86% $549 $328 34% Stabil

  31. Slide 31: Components of Net Asset Value

    Components of Net Asset Value Operating Portfolio Q4 21 Quarterly Ownership Reference Adjusted NOI Adjusted NOI ($M) Stabilized Owned Adjusted NOI Segments $405 Stabilized Leased Adjusted NOI Segments $328 Expansion Owned Adjusted NOI Segments $171 Expansion Leased Adjusted NOI Segments $43 Other Re

  32. Slide 32: Shares Forecast

    Shares Forecast (M) Fully Diluted Weighted Average Shares Common Stock Outstanding 90.6 -0.3 ~91.6 0.6 90.0 89.8 ~91.4 89.6 89.1 0.8 1.6 1.6 1.3 1.4 1.4 90.6 Shares Est. Employee Est. Shares Est. Weighted Est. Weighting Est. Fully Diluted Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Outstanding @ Equity Awards Out

  33. Slide 33: Capital Expenditures Profile

    Capital Expenditures Profile ($M) © 2022  Equinix.com 33

  34. Slide 34: FX Rates, Hedging and Currencies

    FX Rates, Hedging and Currencies (4) Currency % of Revenues Revenue FX Rates (4) (1) (2) Blended (2) (3) (4) CHF Guidance Blended % of GBP Currency Hedge Rate Guidance 1% Rate Hedge % Revenues EUR 9% Rate HKD 20% 3% USD 1.00 39% AUD EUR to USD 1.14 1.16 1.15 54% 20% 4% GBP to USD 1.35 1.29 1.31 63%

  35. 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 ▪ 2030 Science-based Target ▪ Building a Div

  36. Slide 36: Industry Analyst Reports

    Industry Analyst Reports Solution Category Reports • Achieving Business Agility Using Interconnected Hybrid Networks – IDC, 7/21 Interconnection • Datacenter Colocation & Interconnection Services 2021 Vendor Assessment –IDC, 6/21 • Equinix: The Global Digital Platform Facilitator – IDC, 1/21 • Top S

  37. 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 Berenberg Nate Crossett krymill@equinix.com BMO Capital Mark

  38. Slide 38: Appendix: Non-GAAP Financial Reconciliations & Definitions

    Appendix: Non-GAAP Financial Reconciliations & Definitions © 2022  Equinix.com 38

  39. Slide 39: Non-GAAP Reconciliations

    Non-GAAP Reconciliations © 2022  Equinix.com 39

  40. Slide 40: Non-GAAP Reconciliations

    Non-GAAP Reconciliations © 2022  Equinix.com 40

  41. Slide 41: Non-GAAP Reconciliations

    Non-GAAP Reconciliations © 2022  Equinix.com 41

  42. Slide 42: Non-GAAP Reconciliations

    Non-GAAP Reconciliations © 2022  Equinix.com 42

  43. Slide 43: Non-GAAP Reconciliations

    Non-GAAP Reconciliations © 2022  Equinix.com 43

  44. Slide 44: Non-GAAP Reconciliations

    Non-GAAP Reconciliations © 2022  Equinix.com 44

  45. Slide 45: Non-GAAP Reconciliations

    Non-GAAP Reconciliations © 2022  Equinix.com 45

  46. Slide 46: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Consolidated NOI calculation Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 (unaudited and in thousands) Revenues $ 1,706,378 $ 1,675,176 $ 1,657,919 $ 1,596,064 $ 1,564,115 Non-Recurring Revenues (NRR) (1) 85,766 97,808 92,658 80,899 95,149 Other Revenues (2) 39,287 32,630 36,635

  47. Slide 47: Non-GAAP Reconciliations

    Non-GAAP Reconciliations (unaudited and in thousands) Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Income from Operations $ 249,725 $ 282,121 $ 278,654 $ 297,662 $ 228,606 Adjustments: Depreciation, Amortization and Accretion Expense 428,764 419,684 417,758 394,318 378,859 Stock-based Compensation Expens

  48. Slide 48: 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

  49. Slide 49: Definitions: Non-financial Metrics, IBX growth, REIT and Capital Expenditures

    Definitions: Non-financial Metrics, IBX growth, REIT and Capital Expenditures Non-financial Metrics MRR per Cab: Monthly recurring revenues per billed cabinet: (current quarter monthly recurring revenues / 3) divided by ((quarter end cabinets billing prior quarter + quarter end cabinets billing curr

  50. Slide 50: © 2022  Equinix.com

    ull FQUINIX WHERE OPPORTUNITY CONNECTS

Equinix — Q4 2021 Earnings Presentation on 6ix