Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q3 2024 Earnings Presentation
20 slides from Cushman & Wakefield's earnings presentation, Nov 4, 2024
Slide 1: Q3 2024 Earnings
Ml | CUSHMAN & WAKEFIELD Q3 2024 EARNINGS fi LD al NOVEMBER 4, 2 ~~ ; > Better never settles
Slide 2: Forward-looking statements
All statements in this presentation other than historical facts are forward-looking statements, which rely on a number of estimates, projections and assumptions concerning future events. Such statements are also subject to a number of uncertainties and factors outside Cushman & Wakefield’s control.
Slide 3: Non-GAAP financial measures
We have used the following measures, which are considered “non-GAAP financial measures” under SEC guidelines: i. Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and Adjusted EBITDA margin; ii. Segment operating expenses and Fee-based operating expenses; ii
Slide 4: Adjustments to U.S. GAAP Financial Measures Used to Calculate Non-GAAP Measures
Adjustments to U.S. GAAP Financial Measures Used to Calculate Non-GAAP Financial Measures Unrealized (gain) loss on investments, net represents net unrealized gains and losses on fair value investments. Prior to 2024, this primarily reflected unrealized losses on our investment in WeWork. Loss on di
Slide 5: Q3'24 highlights
› Q3’24 fee revenue of $1.6 billion, up 3% versus Q3’23 ‒ Leasing fee revenue up 13%. Fourth consecutive quarter of global leasing fee revenue growth ‒ Capital Markets fee revenue declined 4%. Americas Capital Markets fee revenue grew 2% – the first quarter of growth since Q2’22. APAC and EMEA Capit
Slide 6: Financial Overview
FINANCIAL OVERVIEW
Slide 7: Q3'24 fee revenue growth and Adjusted EBITDA
USD $m, except Three Months Ended September 30, % Change Adjusted EPS 2024 2023 USD LC Fee Revenue $1,633 $1,588 3% 3% Adjusted EBITDA $143 $150 (5)% (5)% Adjusted EBITDA Margin 8.7 % 9.4 % (72) Bps - Adjusted EPS (Diluted) $0.23 $0.21 9% - › Q3’24 fee revenue growth reflects strong Leasing fee reve
Slide 8: Fee revenue by service line and segment
In USD $m $1,633 $1,588 $879 $865 $493 $436 $170 $176 $105 $97 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Growth % LC(1) 3% (2)% 13% (4)% 7% % of Fee Revenue LTM Q3’24(2) 54% 29% 10% 7% › Leasing growth driven by strong results in Americas and APAC › Services business trends remaine
Slide 9: Americas results
In USD $m $1,179 $1,120 $612 $605 $396 $341 $139 $136 $39 $31 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Growth % LC(1) 6% 0% 16% 2% 26% % of Fee Revenue LTM Q3’24(2) 53% 32% 11% 4% › Achieved fee revenue growth in Leasing, Capital Markets, & Valuation & Other; Services fee revenue
Slide 10: EMEA results
In USD $m $213 $191 $99 $78 $51 $54 $42 $39 $20 $21 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Growth % LC(1) (12)% (22)% (8%) (5%) 5% % of Fee Revenue LTM Q3’24(2) 40% 29% 10% 21% › Fee revenue decline reflects decreases across Services, Capital Markets, and Leasing $12 $17 › Adjus
Slide 11: APAC results
In USD $m $263 $255 $182 $168 $46 $41 $19 $24 $27 $11 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Growth % LC(1) 2% 6% 13% (44%) (10)% % of Fee Revenue LTM Q3’24(2) 68% 17% 5% 10% › Fee revenue increase driven by growth in Leasing and Services; partially offset by lower Capital Marke
Slide 12: Liquidity of $1.9 billion and debt maturities
4.3x 4.3x 4.0x $982 2.8x 2.9x $1,100 $979 $48 $645 $394 2020 2021 2022 2023 LTM Q3'24 $- $- 2023 2024 2025 2026 2027 2028 2029 2030 2031 Term Loan Undrawn Revolving Term Loan (’30 Senior Secured Notes (’25 Maturity)(3) Credit Facility Maturity) › Liquidity(2) of $1.9 billion, with $775 million of ca
Slide 13: FY'24 outlook
› FY’24 Leasing revenue growth in the mid-single-digits › FY’24 Services revenue (excluding divestiture) growth flat in 2024 › Fourth Quarter Capital Markets revenue growth of approximately 20% › Full Year Cost headwinds to be mostly offset by cost and efficiency initiatives › FY’24 Effective tax ra
Slide 14: Supplemental Slides and Reconciliations of GAAP to Non-GAAP Financial Measures
SUPPLEMENTAL SLIDES AND RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES mM | CUSHMAN & WI WAKEFIELD
Slide 15: Net debt and leverage
Twelve Months Ended (USD $m, unless otherwise indicated) September 30, 2024 December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 Term Loans(1) $2,009.9 $2,157.7 $2,573.9 $2,593.8 $2,613.7 $2,637.5 2028 Senior Secured Notes(2) 644.8 643.7 642.2 640.8 639.4 — 2031
Slide 16: Fee revenue by segment and service line
Three Months Ended Nine Months Ended Twelve Months Ended (USD $m) September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 September 30, 2024 Americas Segment Services $605.4 $611.7 $1,811.2 $1,869.1 $2,437.2 Leasing 396.0 341.1 1,047.8 981.8 1,486.8 Capital markets 138.5 136.2 38
Slide 17: Segment operating expenses and fee-based operating expenses
Three Months Ended Nine Months Ended (USD $m) September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Americas Fee-based operating expenses $1,071.6 $1,017.2 $3,091.1 $3,110.4 EMEA Fee-based operating expenses 177.0 191.9 544.1 568.9 APAC Fee-based operating expenses 251.5 243.7
Slide 18: Adjusted EBITDA reconciliation
Three Months Ended Nine Months Ended Twelve Months Ended (USD $m) September September September September September December December December December December 30, 2024 30, 2023 30, 2024 30, 2023 30, 2024 31, 2023 31, 2022 31, 2021 31, 2020 31, 2019 Net income (loss) $33.7 $(33.9) $18.4 $(105.2) $8
Slide 19: Adjusted net income reconciliation
Three Months Ended Nine Months Ended (USD $m, unless otherwise indicated) September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Net income (loss) $33.7 $(33.9) $18.4 $(105.2) Add/(less): Merger and acquisition related depreciation and amortization 10.8 16.9 37.5 52.7 Unrealized
Slide 20: About Cushman & Wakefield
ae Bobo Cushman & Wakefield il | CUSHMAN & |) WAKEFIELD Cushman & Wakefield (NYSE: CWk) is a leading global commercial real estate services firm for Property owners and occupiers with approximately 52,000 employees in nearly 400 offices and approximately 60 countries. In 2023, the firm reported reve