Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q4 2023 Earnings Presentation
19 slides from Cushman & Wakefield's earnings presentation, Feb 20, 2024
Slide 1: Q4 2023 Earnings Presentation
Q4 2023 EARNINGS PRESENTATION FEBRUARY 20, 2024 CUSHMAN & WAKEFIELD /1
Slide 2: Cautionary Note on Forward Looking Statements
Cautionary Note on 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 f
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. Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and Adjusted EBITDA margin; ii. Seg
Slide 4: Non-GAAP Financial Measures and Other Financial Information (cont.)
Non-GAAP Financial Measures and Other Financial Information (cont.) Adjustments to U.S. GAAP Financial Measures Used to Calculate Non-GAAP Financial Measures Unrealized loss on investments, net represents net unrealized losses on fair value investments during the years ended December 31, 2023 and 20
Slide 5: Fourth Quarter and Full Year 2023 Business Update
Fourth Quarter and Full Year 2023 Business Update(1) Fourth Quarter Key 2023 Highlights › Q4 fee revenue of $1.8 billion, down 3% versus Q4’22 › Closed 2023 with positive momentum in leasing, reporting Q4’23 leasing fee ‒ Leasing fee revenue up 5% revenue increase of 5% ‒ Capital markets and V&O fee
Slide 6: Financial Overview
FINANCIAL OVERVIEW
Slide 7: Fourth Quarter and Full Year Highlights
Fourth Quarter and Full Year Highlights Three Months Ended % Change Twelve Months Ended % Change USD $m, except December 31, December 31, Adjusted EPS 2022 2023 USD LC 2022 2023 USD LC Fee Revenue $1,850 $1,806 (2)% (3)% $7,248 $6,531 (10)% (10)% Adjusted EBITDA $220 $213 (3)% (5)% $899 $570 (37%) (
Slide 8: Q4'23 Fee Revenue by Segment and Service Line
Q4’23 Fee Revenue by Segment and Service Line In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $1,850 $1,806 $893 $909 $558 $587 $268 $184 $131 $127 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'2
Slide 9: Americas Q4'23 Performance
Americas Q4’23 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $1,314 $1,251 $620 $626 $431 $439 $214 $138 $50 $48 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Growth % LC(1) (5)%
Slide 10: EMEA Q4'23 Performance
EMEA Q4’23 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital markets Valuation & Other Management $255 $254 $97 $91 $81 $68 $51 $51 $40 $31 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Growth % LC(1) (6)% (11)% 13% (26
Slide 11: APAC Q4'23 Performance
APAC Q4’23 Performance In USD $m Total Fee Revenue Fee Revenue by Service Line Property, Facilities and Project Leasing Capital Markets Valuation & Other Management $302 $281 $177 $191 $59 $67 $30 $29 $15 $15 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Growth % LC(1) 7% 7% 14% 5% (4)
Slide 12: Leverage and Liquidity
Leverage and Liquidity Net Debt / Adj. EBITDA Debt Maturity Profile (1) (2) in USD $m 4.3x 4.3x $984 2.5x 2.8x 2.9x $1,100 $981 $193 $644 $393 2019 2020 2021 2022 2023 $- $- 2023 2024 2025 2026 2027 2028 2029 2030 2031 Term Loan B Undrawn Revolving Term Loan B Senior Secured Notes (’25 Maturity) Cre
Slide 13: Outlook
Outlook Q1’24 › Q1’24 total fee revenue growth relatively flat vs. prior year › Q1’24 cost savings expected to more than offset inflation › Slight increase in Q1’24 Adjusted EBITDA vs. prior year results › Effective tax rate of 28% 2024 › Sustained Capital markets growth unlikely to occur prior to H
Slide 14: Supplemental Slides and Reconciliations of GAAP to Non-GAAP Financial Measures
SUPPLEMENTAL SLIDES AND RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
Slide 15: Debt and Leverage
Debt and Leverage Twelve Months Ended (USD $m, unless otherwise indicated) December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 Term Loans(1) $2,157.7 $2,573.9 $2,593.8 $2,613.7 $2,637.5 2028 Senior Secured Notes(2) 643.7 642.2 640.8 639.4 — 2031 Senior Secured N
Slide 16: Summary of Total Segment Revenues
Summary of Total Segment Revenues Three Months Ended Twelve Months Ended (USD $m) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Americas Segment Property, facilities and project management $625.9 $619.7 $2,494.7 $2,434.0 Leasing 439.1 430.6 1,420.9 1,669.7 Capital markets 1
Slide 17: Summary of Total Costs and Expenses
Summary of Total Costs and Expenses Three Months Ended Twelve Months Ended (USD $m) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Americas Fee-based operating expenses $1,127.1 $1,179.4 $4,237.5 $4,650.3 EMEA Fee-based operating expenses 210.4 226.4 779.3 827.6 APAC Fee-bas
Slide 18: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA Three Months Ended Twelve Months Ended (USD $m) December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2023 2022 2023 2022 2021 2020 2019 Net income (loss) $69.8 $29.8 $(35.4) $196.4 $250.0 $(220.5) $0.2 Add/(
Slide 19: Reconciliation of Net Income (Loss) to Adjusted Net Income
Reconciliation of Net Income (Loss) to Adjusted Net Income Three Months Ended Twelve Months Ended (USD $m, unless otherwise indicated) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net income (loss) $69.8 $29.8 $(35.4) $196.4 Add/(less): Merger and acquisition related depre