Slide 1: Q1 Earnings Presentation
Cushman & Wakefield Q1 Earnings Presentation May 7, 2019
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 The following measures are considered “non-GAAP financial measures” under SEC guidelines: i. Fee revenue and fee-based operating expenses ii. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") and Ad
Slide 4: Today's Presenters
Today's Presenters Brett White Duncan Palmer Bill Knightly Executive Chairman & CEO Chief Financial Officer Investor Relations & Treasurer Cushman & Wakefield | Q1 2019 Earnings Conference Call 4
Slide 5: Q1 Business Highlights
Q1 Business Highlights Double-digit growth in Fee revenue and Adjusted EBITDA led by Leasing and PM / FM Continued execution of growth strategy with acquisition of Quality Solutions, Inc. (“QSI”) Completed secondary public offering of 18.7 million shares Recognition of brand strength (#2 Global CRE
Slide 6: CRE Market Outlook
CRE Market Outlook • Macro forecast favorable for CRE services • Continued strong investment appetite for CRE • Global GDP growth1 3.3% and 3.6% for 2019 and 2020, respectively • Reduced concern over U.S. interest rate hikes • Continued rent growth as supply/demand metrics broadly balanced CRE Dashb
Slide 7: Financial Overview
Financial Overview
Slide 8: Q1 Financial Highlights
Q1 Financial Highlights USD in Millions, except for Adjusted EPS Adjusted EBITDA Fee Revenue Adjusted EBITDA Adjusted EPS Margin(1) $1,372 $88 6.4% Q1 +13% +19% +45 bps $0.10 Led by Leasing and Prop, Driven by revenue flow- Strong operating results Fac and Proj Management through and operating Drive
Slide 9: Q1 Fee Revenue by Segment
Q1 Fee Revenue by Segment First Quarter Performance (USD $m) Three Months Ended March 31, % Change % Change 2019 2018 USD LC Americas $937 $850 10% 11% EMEA 184 163 13% 22% APAC 251 233 8% 14% Total Fee Revenue $1,372 $1,246 10% 13% Cushman & Wakefield | Q1 2019 Earnings Conference Call 9
Slide 10: Q1 Fee Revenue by Service Line
Q1 Fee Revenue by Service Line First Quarter Performance (USD $m) Three Months Ended March 31, % Change % Change 2019 2018 USD LC Prop, Fac & Proj Management $707 $615 15% 18% Leasing 373 320 17% 19% Capital Markets 191 214 (11)% (10)% Valuation & Other 102 97 5% 9% Total Fee Revenue $1,372 $1,246 1
Slide 11: Americas Q1 Performance
AmericasQuarter Second - Q1 Performance 2018 Performance: Americas First Quarter Performance (USD $m) Three Months Ended March 31, % Change % Change 2019 2018 USD LC Prop, Fac & Proj Management $463 $404 15% 16% Leasing 297 246 21% 21% Capital Markets 140 163 (14)% (14)% Valuation & Other 36 37 (1)%
Slide 12: EMEA Q1 Performance
EMEA - Q1 Second Performance Quarter 2018 Performance: EMEA First Quarter Performance (USD $m) Three Months Ended March 31, % Change % Change 2019 2018 USD LC Prop, Fac & Proj Management $70 $55 28% 38% Leasing 49 48 2% 11% Capital Markets 26 24 10% 19% Valuation & Other 39 37 5% 14% Total Fee Reven
Slide 13: APAC Q1 Performance
APAC - Q1 Second Performance Quarter 2018 Performance: APAC First Quarter Performance (USD $m) Three Months Ended March 31, % Change % Change 2019 2018 USD LC Prop, Fac & Proj Management $174 $156 11% 19% Leasing 27 26 3% 10% Capital Markets 24 27 (12)% (11)% Valuation & Other 26 23 13% 18% Total Fe
Slide 14: 2019 Outlook
2019 Outlook Continue to see good momentum supported by global economic fundamentals Remain consistent with our full year guidance Cushman & Wakefield | Q1 2019 Earnings Conference Call
Slide 15: Q&A
Q&A
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: Reconciliation of GAAP Revenue to Fee Revenue
Reconciliation of GAAP Revenue to Fee Revenue (USD $m) Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 Americas Segment Total Revenue $1,347.6 $1,206.2 Less: Gross contract costs (410.5) (356.3) Acquisition accounting adjustments — 0.1 Total Fee revenue $937.1 $850.0 EMEA Segment
Slide 18: Reconciliation of Total Costs and Expenses to Fee-based Operating Expenses
Reconciliation of Total Costs and Expenses to Fee-based Operating Expenses (USD $m) Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 Total costs and expenses $1,929.0 $1,849.6 Less: Gross contract costs (531.0) (521.8) Total Fee-based operating expenses $1,398.0 $1,327.8 Cushman &
Slide 19: Reconciliation of Fee-based Operating Expenses by Segment
Reconciliation of Fee-based Operating Expenses by Segment to Consolidated Fee-based Operating Expenses (USD $m) Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 Americas fee-based operating expenses $866.8 $787.6 EMEA fee-based operating expenses 185.4 173.3 APAC fee-based operati
Slide 20: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Net Loss to Adjusted EBITDA (USD $m) Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 Net loss $(20.9) $(92.9) Add/(less): Depreciation and amortization(1) 73.5 69.8 Interest expense, net of interest income(2) 37.2 44.4 Income tax benefit (40.9) (32.0) Integratio
Slide 21: Reconciliation of Net Loss to Adjusted Net Income
Reconciliation of Net Loss to Adjusted Net Income (USD $m, unless otherwise indicated) Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 Net loss $(20.9) $(92.9) Add/(less): Merger and acquisition-related depreciation and amortization 52.8 51.6 Financing and other facility costs (0