Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q2 2021 Earnings Presentation
21 slides from Cushman & Wakefield's earnings presentation, Aug 5, 2021
Slide 1: Q2 Earnings Presentation
CUSHMAN & WAKEFIELD Q 2 E A R N I N G S P R E S E N TAT I O N AUGUST 5, 2021
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 amor
Slide 4: Today's Presenters
TODAY’S PRESENTERS Brett White Neil Johnston Len Texter Executive Chairman Chief Financial Officer Investor Relations & CEO & Global Controller CUSHMAN & WAKEFIELD / 4
Slide 5: Second Quarter 2021 Business Update
SECOND QUARTER 2021 BUSINESS UPDATE › Q2 fee revenue of $1.6 billion, up 34% versus 2020 - Leasing and Capital Markets up 67% and 141%, respectively year over year - Brokerage revenue returned to 2019 pre-COVID levels - PM/FM and Valuation & Other fee revenue up 7% and 16%, respectively year over ye
Slide 6: Accelerating Recovery Driving CRE Activity
ACCELERATING RECOVERY DRIVING CRE ACTIVITY Market Data / Macro Trends Cushman & Wakefield Brokerage Trends Q4 2020 H1 2021 H2 2021 Q2’21 Brokerage Growth versus 2020 & 2019 Industrial / Logistics '21/'19 '21/'20 Alternatives Uptrend/Strong 141% Improvement Turning Point/Slight Multifamily Improvemen
Slide 7: Financial Overview
FINANCIAL OVERVIEW Ml | CUSHMAN & dE WAKEFIELD
Slide 8: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS Three Months › Fee revenue growth reflect strong brokerage activity in Q2’21 (USD $m) % Change Ended June 30, versus prior year trough 2021 2020 USD LC Fee Revenue $1,630 $1,170 39% 34% - Brokerage returned to Q2’19 Pre-COVID levels with continued momentum in Capital Market
Slide 9: Q2 Fee Revenue by Segment and Service Line
Q2 FEE REVENUE BY SEGMENT AND SERVICE LINE Fee Revenue Segment Growth % of Fee Revenue LTM Q2’21 1,630 34% 15% 242 11% 70% 1,170 230 13% 199 › Strong revenue growth across all regions APAC EMEA 185 15% Americas 1,158 46% 786 › Americas brokerage recovering faster than anticipated Q2'20 Q2'21 LC Grow
Slide 10: Americas – Q2 Performance
AMERICAS – Q2 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue LTM Q2’21 1,158 46% 4% 45 32% 240 215% 786 52% 18% 33 Valuation and Other 76 341 78% Capital Markets 190 Leasing 6.9% Prop, Fac and Proj 487 533 9% Margin Management Q2'20 Q2'21 LC Growth 26% Adj. EBITDA 54 157 192% Adj. EBIT
Slide 11: EMEA – Q2 Performance
EMEA – Q2 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue LTM Q2’21 230 13% 20% 185 45 12% 42% 37 33 24% 24 Valuation and Other 60 32% Capital Markets 41 15% 6.9% Leasing Margin Prop, Fac and Proj 83 91 0% Management Q2'20 Q2'21 LC Growth Adj. EBITDA 26 32 10% 23% Adj. EBITDA Margin(1)
Slide 12: APAC – Q2 Performance
APAC – Q2 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue LTM Q2’21 242 11% 14% 199 34 5% 10 (32)% 30 53 51% 5% Valuation and Other 13 63% 32 Capital Markets Leasing 6.9% 145 7% Margin 123 Prop, Fac and Proj Management 18% Q2'20 Q2'21 LC Growth Adj. EBITDA 39 31 (27)% Adj. EBITDA Margin
Slide 13: Capital Structure
CAPITAL STRUCTURE Net Debt / Adj. EBITDA Debt Maturity Profile(1) 2,604 4.3x 4.2x 3.4x 1,020 640 2021 2022 2023 2024 2025 2026 2027 2028 2020 Q1'21 LTM Q2'21 LTM Revolver Term Senior Loan Secured Notes Active Debt Portion Facilities Available › Liquidity remains strong at $2.1B, with $1.1B of cash a
Slide 14: 2021 Outlook
2021 OUTLOOK › Anticipate revenue growth in the 12% - 16% range versus 2020 › Brokerage revenue growth expected to be up more than 30% for the full year › Expect mid-single digit revenue growth in PM/FM › Anticipate Adj. EBITDA margins to be well above 2020 levels and approaching 2019 levels which e
Slide 15: Q&A
Q&A (i CUSHMAN & 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 (USD $m, unless otherwise indicated) Twelve Months Ended Twelve Months Ended Twelve Months Ended June 30, 2021 Mar 31, 2021 Dec 31, 2020 2018 First Lien Loan(1) 2,603.7 2,608.7 2,613.7 2020 Senior Secured Notes(2) 640.1 639.7 639.4 Total Debt $3,243.8 $3,248.4 $3,253.1 Less: Cash (
Slide 18: Summary of Total Segment Revenues
SUMMARY OF TOTAL SEGMENT REVENUES (USD $m) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Twelve Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 June 30, 2021 Americas Segment Property, Facilities and Project Management $533.0 $487.1 $1,073.8 $988.9 $2,1
Slide 19: Summary of Total Costs and Expenses
SUMMARY OF TOTAL COSTS AND EXPENSES (USD $m) Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Americas Fee-based operating expenses $1,002.3 $733.4 $1,856.5 $1,594.6 EMEA Fee-based operating expenses 199.2 159.6 391.5 351
Slide 20: Reconciliation of Net Income (Loss) to Adjusted EBITDA
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA Three Months Three Months Six Months Six Months Twelve Months Twelve Months Twelve Months (USD $m) Ended June 30, Ended June 30, Ended June 30, Ended June 30, Ended June 30, Ended Mar 31, Ended Dec 31, 2021 2020 2021 2020 2021 2021 2020 Net inco
Slide 21: Reconciliation of Net Income (Loss) to Adjusted Net Income
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (USD $m, unless otherwise indicated) Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net income (loss) $52.7 $(100.8) $35.5 $(155.9) Add/(less): Merger and acqui