Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q4 2021 Earnings Presentation
21 slides from Cushman & Wakefield's earnings presentation, Feb 24, 2022
Slide 1: Q4 Earnings Presentation
CUSHMAN & WAKEFIELD Q 4 E A R N I N G S P R E S E N TAT I O N FEBRUARY 24, 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: Full Year 2021 and Fourth Quarter Business Update
FULL YEAR 2021 AND FOURTH QUARTER BUSINESS UPDATE Full Year Strategic Partnerships › Full Year Revenue of $6.9 billion up 24% versus 2020 › Completed formation of Joint Venture with Greystone, investing $500 million for a 40% stake in its Agency, FHA - Leasing & Capital Markets up 43% & 74%, respect
Slide 5: Macroeconomic Environment
MACROECONOMIC ENVIRONMENT Key Observations Real GDP Outlook Projections (Percent Change) › CRE sector and broader economy becoming increasingly 2020 2021 2022F resilient to the pandemic waves Global -3.1 5.9 4.4 › Consumer in strong position to drive growth U.S. -3.4 5.7 4.0 › Labor markets exhibiti
Slide 6: Brokerage Environment
BROKERAGE ENVIRONMENT Leasing Capital Markets › Industrial: Record-setting demand in 2021 with continuing 2.5 Global Sales Volume – All Property Types (in trillions $’s) momentum led by ecommerce 2 › Alternatives: Strong secular engines – growing in 1.5 importance to global investors 1 › Multifamily
Slide 7: Financial Overview
FINANCIAL OVERVIEW Hl | CUSHMAN & dE WAKEFIELD
Slide 8: Fourth Quarter and Full Year Highlights
FOURTH QUARTER AND FULL YEAR HIGHLIGHTS (USD $m) Three Months Ended % Change Twelve Months Ended % Change December 31, December 31, 2021 2020 USD LC 2021 2020 USD LC Fee Revenue $2,220 $1,647 35% 35% $6,891 $5,466 26% 24% Adjusted EBITDA $348 $198 76% 77% $886 $504 76% 73% Adjusted EBITDA Margin 15.
Slide 9: Q4 Fee Revenue by Segment and Service Line
Q4 FEE REVENUE BY SEGMENT AND SERVICE LINE Fee Revenue Segment Growth % of Fee Revenue FY’21 2,220 35% 15% 297 26% 71% 1,647 322 14% 237 APAC EMEA 293 14% › Strong revenue growth across all regions Americas › Brokerage fee revenue in Americas 1,600 43% 1,117 exceeded pre-pandemic levels (2019) Q4'20
Slide 10: Americas – Q4 Performance
AMERICAS – Q4 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue FY’21 1,600 43% 65 18% 4% 470 93% 45% 1,117 56 23% Valuation and Other 244 477 76% Capital Markets 271 Leasing Prop, Fac and Proj 546 589 8% Management Q4'20 Q4'21 LC Growth Adj. EBITDA 127 251 97% 28% Adj. EBITDA Margin(1) 1
Slide 11: EMEA – Q4 Performance
EMEA – Q4 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue FY’21 322 14% 293 20% 58 5% 38% 56 75 40% 56 Valuation and Other Capital Markets 68 86 31% 17% Leasing Prop, Fac and Proj 113 103 (5)% Management Q4'20 Q4'21 LC Growth Adj. EBITDA 43 55 36% 25% Adj. EBITDA Margin(1) 14.8% 17.1% 2
Slide 12: APAC – Q4 Performance
APAC – Q4 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue FY’21 297 26% 34 13% 13% 237 26 38% 30 19 77 55% 7% Valuation and Other 60% 50 Capital Markets Leasing 160 17% 138 Prop, Fac and Proj Management 20% Q4'20 Q4'21 LC Growth Adj. EBITDA 27 41 48% Adj. EBITDA Margin(1) 11.6% 13.9% 23
Slide 13: Capital Structure
CAPITAL STRUCTURE Net Debt / Adj. EBITDA Debt Maturity Profile(1) 2,594 4.3x 2.8x 2.5x 1,020 641 2021 2022 2023 2024 2025 2026 2027 2028 2019 2020 2021 Revolver Term Senior Loan Secured Active Debt Portion Facilities Available Notes › Liquidity remains strong at $1.8 billion, with $771 million of ca
Slide 14: 2022 Outlook
2022 OUTLOOK › Anticipate brokerage growth in the upper single digits for the full year › Expect mid single digit revenue growth in PM/FM for the full year › Targeting Adjusted EBITDA Margin improvement of approximately 100 basis points for the full year, including contributions from Greystone Joint
Slide 15: Q&A
Q&A il | CUSHMAN & dE WAKEFIELD
Slide 16: Supplemental Slides and Reconciliations of GAAP to Non-GAAP Financial Measures
SUPPLEMENTAL SLIDES AND RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
Slide 17: Debt and Leverage
DEBT AND LEVERAGE Twelve Months Ended (USD $m, unless otherwise indicated) December 31, 2021 December 31, 2020 December 31, 2019 2018 First Lien Loan(1) 2,593.8 2,613.7 2,637.5 2020 Senior Secured Notes(2) 640.8 639.4 — Total Debt $3,234.6 $3,253.1 $2,637.5 Less: Cash (770.7) (1,074.8) (813.2) Net D
Slide 18: Summary of Total Segment Revenues
SUMMARY OF TOTAL SEGMENT REVENUES Three Months Ended Twelve Months Ended (USD $m) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Americas Segment Property, facilities and project management $588.5 $546.2 $2,221.9 $2,047.6 Leasing 476.5 270.8 1,392.8 942.6 Capital markets 470
Slide 19: Summary of Total Costs and Expenses
SUMMARY OF TOTAL COSTS AND EXPENSES Three Months Ended Twelve Months Ended (USD $m) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Americas Fee-based operating expenses $1,355.8 $990.4 $4,281.8 $3,423.3 EMEA Fee-based operating expenses 268.5 251.0 864.7 792.9 APAC Fee-based
Slide 20: 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, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Net income (loss) $145.8 $(27.3) $250.0 $(220.5) Add/(less): Depreciation and amortization 43.8 52.1 172.1 263.6 Interest exp
Slide 21: Reconciliation of Net Income (Loss) to Adjusted Net Income
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME Three Months Ended Twelve Months Ended (USD $m, unless otherwise indicated) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Net income (loss) $145.8 $(27.3) $250.0 $(220.5) Add/(less): Merger and acquisition-related d