Slide 1: Q2 2022 Earnings Conference Call
Q2 2022 Earnings Conference Call NASDAQ: EQIX Presented on July 27, 2022 © 2022 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 Equinix’s
Slide 3: Q2 2022 Financial Highlights
Q2 2022 Financial Highlights Revenues Recurring Revenues Non-recurring Revenues Revenues Growth Q2 22 QoQ YoY ($M) $1,734 $1,817 $1,658 $1,675 $1,706 As-reported 5% 10% Acquisition Revenues: Entel (Chile): $7M MainOne: $20M Normalized and (1) 4% 10% $1,707 Constant Currency $1,542 $1,564 $1,603 $1,6
Slide 4: Q2 2022 Consolidated Results
Q2 2022 Consolidated Results $M except for AFFO per Share and Q2 22 Non-Financial Metrics Guidance Actual QoQ YoY Revenues (1) $1,809 - 1,829 $1,817 5% 10% Cash Gross Profit $1,218 6% 9% Cash Gross Margin % 67.0% Cash SG&A $357 2% 13% Cash SG&A % 19.7% Adjusted EBITDA(2) $828 - 848 $860 8% 8% Adjust
Slide 5: Americas Performance
Americas Performance Revenues ($M) Q2 22 Revenues Growth $831 QoQ YoY $782 $800 $751 $763 As-reported 4% 11% Normalized and (1) 3% 9% Constant Currency (2) Normalized MRR 3% 11% Adjusted EBITDA Q2 22 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Growth QoQ YoY Adjusted EBITDA As-reported 6% 15% Adjusted EBITDA Adju
Slide 6: EMEA Performance
EMEA Performance Revenues Revenues Q2 22 ($M) Growth QoQ YoY $599 $538 $545 $553 $550 As-reported 9% 11% Normalized and (1) 6% 11% Constant Currency (2) Normalized MRR 2% 9% Adjusted EBITDA Q2 22 Growth QoQ YoY Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Adjusted EBITDA As-reported 13% 13% Adjusted EBITDA Adjuste
Slide 7: Asia-Pacific Performance
Asia-Pacific Performance Revenues Revenues Q2 22 ($M) Growth QoQ YoY $384 $387 $369 $367 $371 As-reported 1% 5% Normalized and (1) 4% 11% Constant Currency (2) Normalized MRR 3% 14% Adjusted EBITDA Q2 22 (4) Growth QoQ YoY Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Adjusted EBITDA As-reported 3% 10% Adjusted EBI
Slide 8: Capital Structure
Capital Structure (1)(2) Capital Market Updates Available Liquidity $5.8B • On June 2, Fitch Ratings upgraded Equinix’s credit rating to BBB+ Ratings • During 6 months ended June 30, 2022 we sold forward shares under our existing ATM program with future gross settlement value of approximately $395M
Slide 9: Capital Expenditures
Capital Expenditures Recurring Capital Expenditures 5.0% ($M) $86 • Recurring capital expenditures have 2.7% 2.8% 5% 8% historically trended between 2% and 5% of 1.9% revenues, annually $48 1.4% $45 13% • Maintenance capital expenditures can vary by 17% 12% $35 17% 87% quarter based on maintenance s
Slide 10: Stabilized Data Center Growth
(1) (2) Stabilized Data Center Growth Stabilized, Expansion & New Data Centers Stabilized Data Center Profitability ($M) Last Quarter $13,470 $5,223 $3,615 $116 Reported # of Data Centers Q2 22 Revenues ($M) $14,000 $13,132 28% annual Cash Gross 9 Expansion: $12,000 Profit on Gross PP&E 13% (3) inve
Slide 11: 2022 Financial Guidance
(1) 2022 Financial Guidance ($M except AFFO per Share) FY 2022 Q3 2022 (2) (3) Revenues $7,259 - 7,299 $1,827 - 1,847 (4) (5) Adjusted EBITDA $3,323 - 3,353 $831 - 851 Adjusted EBITDA Margin % ~46% ~46% Recurring Capital Expenditures $180 - 190 $42 - 52 % of revenues ~2% 2-3% Non-recurring Capital E
Slide 12: FY22 Guidance
FY22 Guidance (2) Revenues Adjusted EBITDA Raise revenues guidance by $65M against FX headwind of $102M Raise adjusted EBITDA by $33M, excluding integration costs against FX headwind of $49M ($M) 45.9% Normalized (1) 45.9% As-reported Margin Constant Currency 10 - 11% YoY Growth Margin excl. Integra
Slide 13: Q3 Guidance
Q3 22 Guidance Revenues Adjusted EBITDA As-reported Margin 47.3% 47.6% 46.3% 45.8% ($M) 1 - 2% 0 - (2)% $1,827 - 1,847 $860 $861 $1 $840 - 860 $1,817 -$9 $831 - 851 -$9 $1,808 (1) (1) (2) (3) (4) Q2 22 Normalizing Q2 22 Q3 22 Guidance Q2 22 Normalizing Q2 22 Q3 22 Guidance Integration Q3 22 Reported
Slide 14: FY22 AFFO and AFFO per Share Guidance
(1) FY22 AFFO and AFFO per Share Guidance Raise AFFO by $33M including Entel (Chile) contribution of $13M; offset by higher integration cost of $5M and FX headwind of (2) $42M. Normalized AFFO per share growth of 8 - 9% Share Count (Diluted) ($M except AFFO per Share) (3) AFFO per Share (Diluted) No
Slide 15: Dividend Outlook
Dividend Outlook Annual Cash Dividend ~10% ($M) +10% ~$1,132 $1,030 $936 $826 $727 2022E Cash Dividend of ~$1,132M • Expected growth of our annual cash dividend consistent with our strong operating 44% 43% 43% 42% 43% 42% Payout Payout Payout Payout Payout performance Ratio Ratio Ratio Ratio Ratio 2
Slide 16: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data All the Right All the Right All the Right PLACES PARTNERS POSSIBILITIES Place Infrastructure Connect to Everything Seize Opportunity with Wherever You Need It You Need to Succeed Agility, Speed and Confidence Global Footprint Global Ecosystem Experience 248
Slide 17: Equinix Overview
Equinix Overview (1) • Global footprint: 248 data centers in 70 metros Unique Portfolio of Data • Network dense: 2,000+ networks; 100% of Tier 1 Network Routes Center Assets • Cloud dense: ~3,000 Cloud & IT service providers • Interconnected ecosystems: 435,000+ Total Interconnections • 2022 expecte
Slide 18: Pressing Our Advantage in All Markets
Pressing Our Advantage in All Markets Equinix global reach expands to 70 metro areas and 31 countries 6 Continents 31 Countries 70 Metro areas 248 Data centers AMERICAS EMEA ASIA-PACIFIC 28 Metros 29 Metros 13 Metros % of Customers in Platform Equinix • Geographic footprint is 108 Data Centers 89 Da
Slide 19: xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership
xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership Phase Phase Phase Cost JV Status Capacity Leasing Opening ($M) Recent Activity (MW) (MW) • Continued momentum with more than 38MW of pre- Mexico City 3x-1 JV Ready Q3 2022 $58 4 0 Americas leasing in the quarter: São Paulo 5x-2 JV Q4 20
Slide 20: Customer Revenues Mix
Customer Revenues Mix Diversified Revenues across Customer, Region and Industry segments Customers and Churn (1) Q2 22 Revenues Mix EMEA Enterprise 33% 35% INT 18% Network Asia- 23% Recurring Pacific 21% Recurring Revenues MIS & Total Revenues Revenues by Other by Geography CDM 7% Vertical Colo $1,7
Slide 21: Non-Financial Metrics
Non-Financial Metrics (1) FY 2021 FY 2022 Q2 Q3 Q4 Q1 Q2 QoQ Interconnections Americas 181,800 184,800 185,400 189,400 192,100 2,700 EMEA 146,700 149,100 151,500 154,300 157,200 2,900 Asia-Pacific 78,100 80,500 82,300 84,500 86,500 2,000 Total Interconnections 406,600 414,400 419,200 428,200 435,800
Slide 22: Equinix Announced Retail IBX Expansions AMER / APAC
Equinix Announced Retail IBX Expansions AMER / APAC Expansion Highlights • We have 49 major builds underway across 34 markets in 21 countries including 11 xScale builds • We had 6 openings in 6 metros –Frankfurt, London, Mexico City, Milan, Sydney and Tokyo • Estimated FY22 ending cabinet equivalent
Slide 23: Equinix Announced Retail IBX Expansions EMEA
Equinix Announced Retail IBX Expansions EMEA Cabinet(1) Equivalent 2022 2023 2024 Total Capex(1) Capacity In IBX Data Center Status Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 $US millions Ownership Future Phases LD7 phase 2 (London) Open 2,425 $111 Owned* - ML5 phase 2 (Milan) Open 500 $28 Owned - IL2 phase 3
Slide 24: Real Estate Ownership and Long-Term Leases
Real Estate Ownership and Long-Term Leases (1) Own 131 of 248 Data Centers, totaling 18.8M of 29.2M total gross square feet Recurring Revenues by Global Lease Portfolio Expiration Waterfall (3) Ownership (2) % Leases Renewing by Square Footage Last Possible Expiration Date 68% Owned Lease 61% >=2037
Slide 25: Same Store Operating Performance
Same Store Operating Performance (1) Revenues ($M) Cash Cost, Gross Profit and PP&E ($M) Cash Cost Trailing 4-Qtr Inter- Services/ Total Non- Total of Cash Gross Cash Gross Gross Cash Return on Category Colocation connection Other Recurring recurring Revenues Revenues Profit Margin % PP&E Gross PP&E
Slide 26: Consolidated Portfolio Operating Performance
Consolidated Portfolio Operating Performance (1) Cabinets Billed Q2 22 Revenues ($M) Total Cabinet Owned % of # of Data Cabinet Cabinets Utilization Total Total Category Centers Capacity Billed % Recurring Recurring Americas (2) Owned 58 97,500 74,400 76% $535 Leased 45 37,400 31,100 83% $220 Americ
Slide 27: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New Acquisition xScale Owned Leased Atlanta 5 AT2, AT3, AT4, AT5 AT1 AT4 AT1, AT2, AT3, AT5 Change Summary (1) (2) Bogota 1 BG1 BG1 Boston 1 BO2 BO2 Calgary 3 CL1, CL2 CL3 CL3 CL1, CL2 Entel (Chile) Acquisition Chicago 5 CH1, CH2, CH
Slide 28: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New Acquisition xScale Owned Leased Abidjan 1 Abidjan 1 Abidjan 1 Abu Dhabi 1 AD1 AD1 Accra 1 Accra 1 Accra 1 Change Summary (1) (2) (3) Amsterdam 9 AM1, AM2, AM3, AM5, AM6, AM8 AM4, AM7, AM11 AM1*, AM2*, AM3*, AM4*, AM5, AM6, AM7* A
Slide 29: Adjusted Corporate NOI
(1) Adjusted Corporate NOI ($M, except # of Data Centers) Calculation Of Adjusted Corp NOI Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 (1) # of Data Centers 238 232 232 230 225 (2) Recurring Revenues $1,676 $1,618 $1,581 $1,545 $1,529 Recurring Cash Cost of Revenues Allocation (516) (508) (497) (471) (4
Slide 30: Adjusted NOI Composition – Organic
Adjusted NOI Composition – Organic (1) Q2 2022 Q2 2022 # of Total Cabinet Recurring Quarterly Data Cabinet Cabinets Utilization Revenues Adjusted NOI Category Centers Capacity Billed % ($M) ($M) % NOI Stabilized Owned (2) 69 141,900 123,700 87% $754 $500 50% Leased 93 94,600 82,000 87% $532 $317 31%
Slide 31: Components of Net Asset Value
Components of Net Asset Value Operating Portfolio Q2 22 Quarterly Ownership Reference Adjusted NOI Adjusted NOI ($M) Stabilized Owned Adjusted NOI Segments $500 Stabilized Leased Adjusted NOI Segments $317 Expansion Owned Adjusted NOI Segments $120 Expansion Leased Adjusted NOI Segments $66 Other Re
Slide 32: Shares Forecast
Shares Forecast (M) Fully Diluted Weighted Average Shares Common Stock Outstanding 91.0 91.1 -0.3 ~91.6 0.5 90.6 ~91.4 90.0 89.8 0.8 1.6 1.7 1.7 1.4 1.4 90.6 Shares Est. Employee Est. Shares Est. Weighted Est. Weighting Est. Fully Diluted Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Outstanding @ Equity Awards Out
Slide 33: Capital Expenditures Profile
Capital Expenditures Profile ($M) Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Recurring IBX Maintenance 21 10 75 36 30 Sustaining IT & Network 6 6 4 6 8 Re-configuration Installation 8 8 7 6 8 Subtotal - Recurring 35 24 86 48 45 Non-Recurring IBX Expansion 325 256 520 487 515 Transform IT, Network & Off
Slide 34: FX Rates, Hedging and Currencies
FX Rates, Hedging and Currencies (4) Revenue FX Rates Currency % of Revenues Blended Guidance Blended % of Currency Hedge Rate Guidance CHF Rate (1) (2) Hedge % (3) Revenues(4) GBP Rate (2) 1% 9% EUR HKD USD 1.00 40% 19% 3% EUR to USD 1.05 1.19 1.14 66% 19% AUD 4% GBP to USD 1.22 1.35 1.31 68% 9% US
Slide 35: The Three Pillars of ESG
(1) The Three Pillars of ESG Our Future First sustainability strategy inspires us to dream of a better future. Environment Social Governance Do more for each Do what it takes to Do what’s right to other to unleash protect the planet lead the way potential ▪ First data center to set a ▪ Building a Di
Slide 36: Industry Analyst Reports
Industry Analyst Reports Solution Category Reports • Datacenter Colocation & Interconnection Services 2021 Vendor Assessment – IDC, 6/21 Interconnection • Equinix: The Global Digital Platform Facilitator – IDC, 1/21 • Workload placement in hybrid IT - Making great decisions about what, where, when a
Slide 37: Equinix Leadership and Investor Relations
Equinix Leadership and Investor Relations Executive Team Equinix Investor Relations Contacts Equity Research Analysts Katrina Rymill Bank of America David Barden SVP, Corporate Finance and Sustainability Barclays Brendan Lynch 650-598-6583 BMO Capital Markets Ari Klein krymill@equinix.com Citigroup
Slide 38: Appendix: Non-GAAP Financial Reconciliations & Definitions
Appendix: Non-GAAP Financial Reconciliations & Definitions © 2022 Equinix.com 38
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2022 Equinix.com 39
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2022 Equinix.com 40
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2022 Equinix.com 41
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2022 Equinix.com 42
Slide 43: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2022 Equinix.com 43
Slide 44: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 2022 Equinix.com 44
Slide 45: Non-GAAP Reconciliations
Non-GAAP Reconciliations Consolidated NOI calculation Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 (unaudited and in thousands) Revenues $ 1,817,154 $ 1,734,447 $ 1,706,378 $ 1,675,176 $ 1,657,919 Non-Recurring Revenues (NRR) (1) 82,987 83,844 85,766 97,808 92,658 Other Revenues (2) 58,579 32,770 39,287
Slide 46: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Income from Operations $ 317,853 $ 267,316 $ 249,725 $ 282,121 $ 278,654 Adjustments: Depreciation, Amortization and Accretion Expense 432,828 436,386 428,764 419,684 417,758 Stock-based Compensation 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: Definitions: Non-financial Metrics, Data Center growth, REIT and Capital Expenditures
Definitions: Non-financial Metrics, Data Center growth, REIT and Capital Expenditures Non-financial Metrics MRR per Cab: Monthly recurring revenues per billed cabinet: (current quarter recurring revenues / 3) divided by ((quarter end cabinets billing prior quarter + quarter end cabinets billing curr
Slide 49: © 2022 Equinix.com
ull FQUINIX WHERE OPPORTUNITY CONNECTS