Slide 1: Q1 2015 Earnings Conference Call
Q1 2015 Earnings Conference call NASDAQ: EQIX Presented on April 29, 2015 © 2015 Equinix Inc. Equinix.com 1
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 Equi
Slide 3: Q1 2015 Financial Highlights
Q1 2015 Financial Highlights Revenues ($M) Recurring Revenues Non-recurring Revenues $620.4 $638.1 $643.2 $580.1 $605.2 Revenues of $643.2 Million • Revenues up 1% QoQ and 11% YoY • Revenues up 3% QoQ and 16% YoY on a $ 574.2 $ 588.4 $ 605.5 $ 609.7 normalized and constant currency basis (1) $ 549.7
Slide 4: Q1 2015 Consolidated Results
Q1 2015 Consolidated Results Quarter ($M Except for Non-Financial Metrics) Q1 15 Q1 15 Q4 14 Q1 14 Q1 15 vs. Q1 15 vs. Guidance Actual Actual Actual Q4 14 % ∆ Q1 14 % ∆ Revenues $634 - $638 $ 643.2 $ 638.1 $ 580.1 1% 11% Cash Gross Profit 451.0 442.2 395.8 2% 14% Cash Gross Profit Margin % 68 - 69%
Slide 5: Americas Performance
Americas Performance Q1 Highlights Q1 Business Conditions ($M) $356.4 $364.0 • Q1 reported revenues up 2% QoQ and 10% YoY $342.3 $347.4 $330.0 • Q1 revenues increased 3% QoQ and 11% YoY on a normalized and constant currency basis (1) • Q1 Adjusted EBITDA increased 3% QoQ and 15% YoY on an as- $160.1
Slide 6: EMEA Performance
EMEA Performance Q1 Highlights Q1 Business Conditions ($M) $161.6 $167.1 $164.6 $151.4 $157.2 • Q1 revenues down by 1% QoQ, but up 9% YoY on an as-reported basis • Q1 increased 5% QoQ and 19% YoY on a normalized and constant currency basis (1) • Q1 Adjusted EBITDA increased 7% QoQ and 20% YoY on an
Slide 7: Asia-Pacific Performance
Asia-Pacific Performance Q1 Highlights Q1 Business Conditions ($M) • Q1 revenues remained flat QoQ, but increased by 16% YoY on an as- $111.4 $114.6 $114.6 reported basis $105.7 $98.6 • Q1 revenues increased 4% QoQ and 25% YoY on a normalized and constant currency basis (1) $54.0 $56.2 $57.0 • Q1 Ad
Slide 8: Capital Structure and Source and Uses of Cash
Capital Structure and Source and Uses of Cash • Ample liquidity to fund growth and dividend • Flexible capital structure with additional capacity Capitalization Table Sources and Uses of Cash Sources: $2.9B Q4 14 Q1 15 Capital Leases $ 1,189 $ 1,201 Available Line $1.0B Other Debt 3,502 3,475 of Cre
Slide 9: Dividend Outlook
Dividend Outlook AFFO outlook ($M) • 2015 guidance of >$830M >$830 • Implies growth of 9% YoY on an as-reported (1) $762 basis, and 15% growth YoY on a constant currency basis $680 Dividend growth potential • AFFO growth provides capacity for long term dividend growth ~$385 2015E Dividend of $385M •
Slide 10: Capex
Capex Q1 2015 Capex and Regional Breakout Recurring Non-Recurring ($M) ($M) Recurring capital expenditures APAC 30% Maintenance Sustaining IT & • Expenditures to extend useful life of 38% Network 39% Americas 54% IBXs or other Equinix assets that are required to support current revenues EMEA 16% Ins
Slide 11: Stabilized IBX Growth
Stabilized IBX Growth (1) Stabilized, Expansion & New IBXs Stabilized IBX Profitability (3) (4) (4) (6) (2) (2) Revenues represent Q1 15 reported revenues in millions; excludes revenues from non- (1) New IBXs where Phase 1 began operating after January 1, 2014 IBXs or Nimbo acquisition Expansion IBX
Slide 12: 2015 Revenues Bridge
2015 Revenues Bridge As Reported Constant FX & Hedging Currency Q2 15 E FY 2015 E (3) 13% YoY 8% YoY 0% 1% 2% 3% 656 6 25 > 2,635 > 2,630 643 (1) (2) Q1 15 Q2 15 Mid- Q2 15 @ CC Prior 2015 Guidance 2015 Current 2015 Current Point Guidance Guidance Guidance @ CC (1) Q2 15 revenues @ constant currency
Slide 13: 2015 Adjusted EBITDA Bridge
2015 Adjusted EBITDA Bridge As Reported Constant Currency Adjusted EBITDA Margin % FX & Hedging Q2 15 E FY 2015 E (4) 15% YoY 47.5% 46.6% 46.4% 46.7% 10% YoY 0% 2% 1% 1% 5 7 306 306 > 1,230 > 1,220 (1) (3) Q1 15 (2) Q2 15 Mid- Q2 15 @ CC Prior 2015 Guidance 2015 Current 2015 Current Point Guidance G
Slide 14: 2015 AFFO Bridge
2015 AFFO Bridge As Reported Constant Currency FX & Hedging 15% YoY (3) Change from 9% YoY +10 +12 -2 +20 Last Quarter 2% 3% ~265 ~40 ~115 > 810 > 1,230 6 ~ 20 > 830 Prior 2015 FY15 Adjusted Net Interest (1) Net Income Recurring Other FY15 AFFO FY15 Current (2) AFFO Guidance EBITDA Current Expense E
Slide 15: 2015 Financial Guidance
2015 Financial Guidance $M FY 2015 Q2 2015 (1) (2) Revenues > $2,635 $654 - $658 Cash Gross Margin % ~ 69% 68 - 69% Cash SG&A $580 - $600 $144 - $148 Cash SG&A % 22 - 23% ~22% (3) (4) Adjusted EBITDA > $1,230 $304 - $308 Adjusted EBITDA Margin % ~46.7% ~46.5% Capex $740 - $800 $210 - $220 Non-Recurr
Slide 16: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data Global Interconnection Business Data Centers Ecosystems 105 Data Centers 1,000+ Networks 6,300+ Businesses 11M+ Square Feet 155,600 Cross-connects Equinix Marketplace™ 99.9999% Uptime 100% of Tier 1 Network Revenue Opportunities Record Routes © 2015 Equinix
Slide 17: Equinix Overview
Equinix Overview (1) Unique portfolio of data center assets Development pipeline • Global footprint: 105 data centers in 33 metros • Long history of development success through • Network dense: 1,000+ networks expansions, campuses and known demand pipeline • Cloud dense: 1,250 Cloud/IT service provi
Slide 18: Equinix Global Platform
Equinix Global Platform (1) Equinix offers broad geographic reach and significant scale within each region 5 Continents 15 Countries 33 Metro Areas 105 Data Centers Platform Equinix • Geographic footprint is unmatched 15 metros 10 metros 8 metros and remains a unique differentiator 54 IBXs 30 IBXs 2
Slide 19: Customer Revenues Mix
Customer Revenues Mix (1) Diversified Revenue by Customer, Region & Industry Global Customer Count and Churn % 4% Network Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 (3) Recurring 17% 26% Total Global Customers 5,970 6,010 6,070 6,260 6,320 MIS (3) Gross New Global Customers 170 190 140 190 210 Financial (4) Serv
Slide 20: Non-Financial Metrics
Non-Financial Metrics (1) FY2014 FY 2015 Q1 Q2 Q3 Q4 Q1 # of Cross-connects INTERCONNECTION Americas 74,000 75,600 78,300 81,900 83,700 EMEA 33,400 34,600 35,700 36,900 38,400 1,000+ Networks Asia-Pacific 27,400 28,400 30,400 31,300 33,500 155,600+ Cross-connects Worldwide 134,800 138,600 144,400 15
Slide 21: Equinix Announced Expansions 2015-2016
Equinix Announced Expansions 2015-2016 Overview of major Equinix IBX data center expansions AMERICAS Total CAPEX* IBX Center Target Open Date Cabinet Capacity* (millions U.S.$) Comments GLOBAL TOTALS ** TR2 phase I (Toronto) Opened Q1 2015 675 $42 Additional capacity for 1,775 cabinet equivalents in
Slide 22: REIT Conversion Costs & Cash Income Taxes
(1) REIT Conversion Costs & Cash Income Taxes Description Value/Cash impact D&A Recapture • Reclassifying Equinix assets as “real estate” results in a tax • U.S. tax liabilities related to D&A recapture expected to liability due to longer depreciation and amortization lives be approximately $360 to
Slide 23: Long-Term Lease Renewals
Long-Term Lease Renewals Average lease maturity of 22 years including extensions (1) Global Lease Portfolio Expiration Waterfall % Leases Renewing by Square Footage Last Possible Expiration Date Equinix Owned Sites (2) 86% • Own 23 of 105 IBXs • 4.0M of 11.0M total gross square feet (3) • 37% of tot
Slide 24: REIT Disclosure Update
REIT Disclosure Update Equinix is introducing real estate portfolio valuation disclosures Same-Store Operating Performance (previously disclosed) – Provides a year-over-year comparison of revenues segments and cash gross margin for a constant set of Stabilized and Expansion properties. Property oper
Slide 25: Same Store Operating Performance
Same Store Operating Performance Stabilized and Expansion – Cash Gross Profit Grew 13.6% Revenues #039;000s Cash Cost & Gross Profit #039;000s Cash Cost Trailing 4-Qtr Inter- Services/ Total Non- Total Cash Gross Cash Gross Segment Colocation of Cash Return on connection Other Recurring recurring Revenues
Slide 26: Consolidated Portfolio Operating Performance
Consolidated Portfolio Operating Performance By Region & Ownership – Owned Assets Generated 37% of Our Recurring Revenues Cabinets Billed Revenues (Q1 2015) #039;000s Total Cabinet Owned % Cabinets Inter- Services/ Total Non- Total Segment # of IBXs Cabinet Utilization Colocation (4) of Total Billed co
Slide 27: Portfolio Segmentation – IBX mapping
Portfolio Segmentation – IBX mapping Same-Store Same-Store Same-Store IBX Location Ownership IBX Location Ownership IBX Location Ownership Classification Classification Classification Americas EMEA Asia-Pacific AT1 Atlanta Expansion Leased AM1 * Amsterdam Stabilized Owned HK1 Hong Kong Expansion Lea
Slide 28: Adjusted Corporate NOI
(1) Adjusted Corporate NOI Calculation Of Adjusted Corp NOI (unaudited) Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 (1) # of IBXs 104 101 100 100 100 (2) Recurring Revenues $ 608,280 $ 604,917 $ 584,554 $ 572,269 $ 549,352 Recurring Cash Cost of Revenues Allocation (170,608) (174,772) (174,010) (173,135
Slide 29: Adjusted NOI Segments
Adjusted NOI Segments By Stabilization and Ownership – Owned Assets and NOI are predominantly in campus locations in our largest global markets Total Cabinet Adjusted NOI by Region Q1 2015 Q1 2015 # of Cabinets Territory Cabinet Utilization Recurring Quarterly % NOI IBXs Billed (4) Capacity % % AMER
Slide 30: Components of NAV
Components of NAV (unaudited) Operating Portfolio Adjusted % of Adjusted NOI Quarterly Adjusted Ownership Reference NOI AMER EMEA APAC NOI Stabilized Owned 56% 44% 0% Adjusted NOI Segments $103,840 Stabilized Leased 80% 9% 11% Adjusted NOI Segments 151,060 Expansion Owned 61% 39% 0% Adjusted NOI Seg
Slide 31: Market Capitalization & Debt Summary
Market Capitalization & Debt Summary March 31, 2015 Spread / (1) Market Capitalization Summary Debt Coupon Interest Rate Maturity Balance Common shares outstanding 56,922 Term Loan L + 125 1.43% Dec-19 $ 490,000 Market Price as of Mar 31, 2015 $ 232.85 ALOG Financing Various 14.62% Various 46,109 Ma
Slide 32: REIT Financial Metrics
REIT Financial Metrics Adjusted EBITDA to AFFO Breakdown FFO, Diluted AFFO & Adjusted EBITDA ($M) per Diluted Share(1) Adjusted EBITDA $294 $306 $284 $5.07 $5.17 $275 $4.77 $4.97 $4.50 $260 $3.64 $3.77 $3.29 $3.39 $3.03 $3.09 $2.52 $2.61 $222 $1.99 $207 $188 $195 $173 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Slide 33: Fully Diluted Weighted Average Shares Forecast
Fully Diluted Weighted Average Shares Forecast (‘K) ~1,952 ~-2,259 59,889 59,422 ~774 ~2,100 56,451 ~871 Shares outstanding Est. Employee Est. 2015 Special Est. Shares Est. Dilutive Convertible Est. Weighting of Est. Fully Diluted @ 12/31/14 - Actual Equity Awards Distribution outstanding Unissued S
Slide 34: Recurring CapEx
Recurring CapEx Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 Recurring Sustaining IT & Network $ 8,766 $ 6,034 $ 5,663 $ 8,297 $ 10,915 IBX Maintenance 8,449 20,612 9,067 11,269 10,052 Re-configuration Installation 5,158 6,478 5,044 6,451 5,482 Subtotal - Recurring 22,373 33,124 19,775 26,018 26,449 Non-
Slide 35: Equinix Leadership and Investor Relations
Equinix Leadership and Investor Relations Executive Team Equinix Investor Relations Contacts Katrina Rymill Paul Thomas VP, Investor Relations Director, Investor Relations 650-598-6583 650-598-6442 krymill@equinix.com pthomas@equinix.com Equinix Media Contacts Steve Smith Keith Taylor Charles Meyers
Slide 36: Appendix: Non-GAAP Financial Reconciliations & Definitions
Appendix: Non-GAAP Financial Reconciliations & Definitions © 2015 Equinix Inc. Equinix.com 36
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations EQUINIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION (in thousands) (unaudited) Three Months Ended March 31, December 31, March 31, 2015 2014 2014 We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations EQUINIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION (in thousands) (unaudited) Three Months Ended March 31, December 31, March 31, 2015 2014 2014 We define cash operating expenses as operating expenses less depreciation, amortization, stock-
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations EQUINIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION (in thousands) (unaudited) Three Months Ended March 31, December 31, March 31, 2015 2014 2014 We define adjusted EBITDA as income from operations plus depreciation, amortization, accretion,
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations EQUINIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION (in thousands) (unaudited) Three Months Ended March 31, December 31, March 31, 2015 2014 2014 The geographic split of our adjusted EBITDA is presented below: Americas income from operations
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations EQUINIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - NON-GAAP PRESENTATION (in thousands) (unaudited) Three Months Ended March 31, December 31, March 31, 2015 2014 2014 We define cash gross margins as cash gross profit divided by revenues. Our cash gross margins b
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations Equinix, Inc. Adjusted EBITDA - Annual Twelve Months Twelve Months Twelve Months Twelve Months Twelve Months Ended Ended Ended Ended Ended Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, (1) (1) (1) 2014 2013 2012 2011 2010 We define adjusted EBITDA as income from operations plus de
Slide 43: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDA (unaudited and in thousands, except per share amounts) Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 CALCULATION OF ADJUSTED EBITDA Income from continuing operations $ 151,449 $ 127,826 $ 135,131 $ 124,697 $ 121,612 $ 124,989 $ 115,1
Slide 44: Non-GAAP Reconciliations
Non-GAAP Reconciliations NAREIT Funds From Operations (NAREIT FFO) (unaudited and in thousands, except per share amounts) Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 RECONCILIATION OF NET INCOME (LOSS) TO NAREIT FFO Net income (loss) $ 76,452 $(355,103) $ 42,961 $ 10,079
Slide 45: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Funds From Operations (AFFO) (unaudited and in thousands, except per share amounts) Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 NAREIT FFO attributable to common shareholders $ 179,190 $(241,338) $ 146,059 $ 109,813 $ 138,732 $ 136,681 $
Slide 46: Non-GAAP Reconciliations
Non-GAAP Reconciliations EQUINIX, INC. PRO FORMA RESULTS EARNINGS PER SHARE (In thousands, except per share data) (unaudited) Three Months Ended December 31, 2014 Actual Adjustments Pro Forma Debt Exting. REIT Conv. Income from operations $ 127,826 $ - $ - $ 127,826 Interest and other income (expens
Slide 47: 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
Slide 48: © 2015 Equinix Inc. Equinix.com
© 2015 Equinix Inc. Equinix.com 48