Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q3 2021 Earnings Presentation
20 slides from Cushman & Wakefield's earnings presentation, Nov 4, 2021
Slide 1: Q3 Earnings Presentation
CUSHMAN & WAKEFIELD Q 3 E A R N I N G S P R E S E N TAT I O N NOVEMBER 4, 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 amo
Slide 4: Third Quarter 2021 Business Update
THIRD QUARTER 2021 BUSINESS UPDATE › Q3 fee revenue of $1.7 billion, up 27% versus 2020 - Leasing & Capital Markets up 41% & 111%, respectively, year over year; Brokerage exceeded 2019 pre-COVID levels - PM/FM and Valuation & Other fee revenue up 5% and 11%, respectively, year over year › Q3 Adjuste
Slide 5: Strategic Partnerships Driving Profitable Growth
STRATEGIC PARTNERSHIPS DRIVING PROFITABLE GROWTH Key Multi-family Service Capabilities Focus Area Debt Brokerage Property Management Technology › Formed Joint Venture with Greystone, investing $500m for a › Partnership combines WeWork’s best-in-class workplace experience 40% stake in its Agenc
Slide 6: Financial Overview
FINANCIAL OVERVIEW HH | CUSHMAN & i WAKEFIELD
Slide 7: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS Three Months Ended › Fee revenue growth reflects strong brokerage activity in Q3’21 (USD $m) % Change September 30, versus prior year 2021 2020 USD LC Fee Revenue $1,704 $1,329 28% 27% - Resiliency in Capital Markets and non-office leasing sectors driving brokerage revenue a
Slide 8: Q3 Fee Revenue by Segment and Service Line
Q3 FEE REVENUE BY SEGMENT AND SERVICE LINE Fee Revenue Segment Growth % of Fee Revenue LTM Q3’21 1,704 27% 15% 243 13% 1,329 70% 232 13% 210 APAC EMEA 200 15% › Strong revenue growth across all regions Americas 1,229 33% 919 › Recovery in Americas brokerage well ahead of expectations Q3'20 Q3'21 LC
Slide 9: Americas – Q3 Performance
AMERICAS – Q3 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue LTM Q3’21 1,229 33% 4% 47 20% 268 116% 919 39 49% 124 20% Valuation and Other 356 45% 244 Capital Markets Leasing 512 560 9% Prop, Fac and Proj Management Q3'20 Q3'21 LC Growth 27% Adj. EBITDA 81 161 97% Adj. EBITDA Margin(1)
Slide 10: EMEA – Q3 Performance
EMEA – Q3 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue LTM Q3’21 232 13% 20% 200 43 10% 40% 38 38 56% 24 Valuation and Other 44 58 29% Capital Markets 16% Leasing Prop, Fac and Proj 95 92 (5)% Management Q3'20 Q3'21 LC Growth Adj. EBITDA 12 29 140% 24% Adj. EBITDA Margin(1) 5.7% 12.3
Slide 11: APAC – Q3 Performance
APAC – Q3 PERFORMANCE Fee Revenue Service Line Growth % of Fee Revenue LTM Q3’21 243 13% 13% 210 30 3% 28 24 204% 8 45 28% 7% Valuation and Other 34 61% Capital Markets Leasing 140 144 1% Prop, Fac and Proj Management 19% Q3'20 Q3'21 LC Growth Adj. EBITDA 24 30 19% Adj. EBITDA Margin(1) 11.6% 12.3%
Slide 12: Capital Structure
CAPITAL STRUCTURE Net Debt / Adj. EBITDA Debt Maturity Profile(1) 2,599 4.3x 3.4x 2.8x 1,020 640 2021 2022 2023 2024 2025 2026 2027 2028 2020 Q2'21 LTM Q3'21 LTM Revolver Term Senior Loan Secured Active Debt Portion Facilities Available Notes › Liquidity remains strong at $2.2B, with $1.2B of cash a
Slide 13: 2021 Outlook
2021 OUTLOOK › Anticipate revenue growth in the 18-20% range versus 2020 › Brokerage revenue growth expected to be more than 35% versus prior year › Expect mid-single digit revenue growth in PM/FM › Anticipate Adjusted EBITDA to be in the range of $800m for the full year 2021 › Expect to meaningfull
Slide 14: Q&A
Q&A Hl | CUSHMAN & i WAKEFIELD
Slide 15: Supplemental Slides and Reconciliations of GAAP to Non-GAAP Financial Measures
SUPPLEMENTAL SLIDES AND RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
Slide 16: Debt and Leverage
DEBT AND LEVERAGE (USD $m, unless otherwise indicated) Twelve Months Ended Twelve Months Ended Twelve Months Ended September 30, 2021 June 30, 2021 Dec 31, 2020 2018 First Lien Loan(1) 2,598.8 2,603.7 2,613.7 2020 Senior Secured Notes(2) 640.4 640.1 639.4 Total Debt $3,239.2 $3,243.8 $3,253.1 Less:
Slide 17: Summary of Total Segment Revenues
SUMMARY OF TOTAL SEGMENT REVENUES Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Twelve Months Ended (USD $m) September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 September 30, 2021 Americas Segment Property, Facilities and Project Management $559.5
Slide 18: Summary of Total Costs and Expenses
SUMMARY OF TOTAL COSTS AND EXPENSES (USD $m) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Americas Fee-based operating expenses $1,069.5 $838.3 $2,926.0 $2,432.9 EMEA Fee-based operating expenses
Slide 19: Reconciliation of Net Income (Loss) to Adjusted EBITDA
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA Three Months Three Months Nine Months Nine Months Twelve Months Twelve Months Twelve Months (USD $m) Ended Ended Ended Ended Ended Ended June 30, Ended Dec 31, September 30, September 30, September 30, September 30, September 30, 2021 2020 2021
Slide 20: 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 Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Net income (loss) $68.7 $(37.3) $104.2 $(193.2) Add/(l