Slide 1: Q1 2022 Earnings Conference Call
Q1 2022 Earnings Conference Call NASDAQ: EQIX Presented on April 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: Q1 2022 Financial Highlights
Q1 2022 Financial Highlights Revenues Recurring Revenues Non-recurring Revenues Revenues Growth Q1 22 QoQ YoY ($M) $1,706 $1,734 $1,596 $1,658 $1,675 As-reported 2% 9% Normalized and (1) 2% 10% $1,511 $1,564 $1,603 $1,642 Constant Currency $1,542 (1) Normalized MRR 3% 10% Q1 21 Q2 21 Q3 21 Q4 21 Q1
Slide 4: Q1 2022 Consolidated Results
Q1 2022 Consolidated Results (1) (2) (3) (3)(4) (3) (1) Q1 22 Actual includes a negative foreign currency impact of approximately $5 million when compared to Q4 21 average FX rates, a negative foreign currency impact of approximately $2 million when compared to our prior FX guidance rates, and a neg
Slide 5: Americas Performance
Americas Performance Revenues ($M) Q1 22 Revenues Growth QoQ YoY $782 $800 $726 $751 $763 As-reported 2% 10% Normalized and (1) 2% 10% Constant Currency (2) Normalized MRR 2% 9% Adjusted EBITDA Q1 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Growth QoQ YoY Adjusted EBITDA As-reported 7% 4% Adjusted EBITDA Adjus
Slide 6: EMEA Performance
EMEA Performance Revenues Revenues Q1 22 ($M) Growth QoQ YoY $545 $553 $550 (3) $538 $519 As-reported 1% 6% Normalized and (1) 1% 9% Constant Currency (2) Normalized MRR 3% 9% Adjusted EBITDA Q1 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Growth QoQ YoY (3) Adjusted EBITDA As-reported 0% 7% Adjusted EBITDA Adj
Slide 7: Asia-Pacific Performance
Asia-Pacific Performance Revenues Revenues Q1 22 ($M) Growth QoQ YoY $369 $371 $384 $351 $367 As-reported 3% 9% Normalized and (1) 4% 13% Constant Currency (2) Normalized MRR 5% 14% Adjusted EBITDA Q1 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Growth QoQ YoY Adjusted EBITDA As-reported 6% 1% Adjusted EBITDA A
Slide 8: Capital Structure
Capital Structure (1)(2) Capital Market Updates Available Liquidity • On April 5, we issued $1.2B of 3.90% Green Senior Notes due 2032. We used treasury locks to $5.6B hedge a significant portion of interest rate risk associated with this offering, reducing the effective coupon to 3.35% Ratings Baa2
Slide 9: Capital Expenditures
Capital Expenditures Recurring Capital Expenditures 5.0% ($M) $86 • Recurring capital expenditures have 8% 2.7% 2.8% 5% historically trended between 2% and 5% of revenues, annually $45 $48 17% 13% 1.4% • Maintenance capital expenditures can vary by 1.3% 12% 87% 17% $24 quarter based on maintenance s
Slide 10: Stabilized IBX Growth
(1) (2) Stabilized IBX Growth Stabilized, Expansion & New IBXs Stabilized IBX Profitability ($M) Last Quarter $12,598 $4,843 $3,340 $115 Reported # of IBXs Q1 22 Revenues ($M) $16,000 $14,000 $13,470 27% annual Cash Gross 9 Expansion: Profit on Gross PP&E 22% (3) investment (5) $343 $12,000 57 Growt
Slide 11: 2022 Financial Guidance
(1)(8) 2022 Financial Guidance ($M except AFFO per Share) FY 2022 Q2 2022 (2) (3) Revenues $7,291 - 7,341 $1,809 - 1,829 (4) (5) Adjusted EBITDA $3,344 - 3,374 $828 - 848 Adjusted EBITDA Margin % ~46% ~46% Recurring Capital Expenditures $168 - 178 $33 - 43 % of revenues ~2% ~2% Non-recurring Capital
Slide 12: FY22 Guidance
FY22 Guidance (2) Revenues Adjusted EBITDA Raise revenues guidance by $89M Raise adjusted EBITDA guidance excluding integration costs by $42M; increase integration costs by $5M ($M) Normalized (1) 46.0% As-reported Margin 45.9% Constant Currency ~10% YoY Growth Margin excl. Integration 46.3% 46.2% C
Slide 13: Q2 22 Guidance
Q2 22 Guidance Revenues Adjusted EBITDA As-reported Margin 46.1% 46.4% 46.5% 46.1% ($M) 2 - 5% 3 - 4% $828 - 848 $1,809 - 1,829 $828 - 848 $0 $1,793 - 1,813 $16 $809 $800 $10 $1,742 $1,734 $8 (1) (1) (2) (3) Q1 22 Normalizing Q1 22 Q2 22 MainOne Q2 22 Q1 22 Normalizing Q1 22 Q2 22 Guidance MainOne &
Slide 14: FY22 AFFO and AFFO per Share Guidance
(1) FY22 AFFO and AFFO per Share Guidance Raise underlying AFFO by $22M and MainOne contribution of $9M; offset incremental debt financing costs of $22M and higher (2) integration cost of $5M; Normalized AFFO per share growth of 7 - 8% Share Count (Diluted) ($M except AFFO per Share) (3) AFFO per Sh
Slide 15: Dividend Outlook
Dividend Outlook Annual Cash Dividend ($M) ~10% +10% ~$1,130 $1,030 $936 $826 $727 2022E Cash Dividend of ~$1,130M • Expected growth of our annual cash dividend consistent with our strong operating 44% 43% 43% 42% 42% Payout Payout Payout Payout Payout performance Ratio Ratio Ratio Ratio Ratio 2018
Slide 16: Supplemental Financial and Operating Data
Supplemental Financial and Operating Data All the Right All the Right All the Right PLACES PARTNERS POSSIBILITIES Place Infrastructure Connect to Everything Seize Opportunity with Wherever You Need It You Need to Succeed Agility, Speed and Confidence Global Footprint Global Ecosystem Experience 244
Slide 17: Equinix Overview
Equinix Overview (1) • Global footprint: 244 data centers in 69 metros Unique Portfolio of Data • Network dense: 2,000+ networks; 100% of Tier 1 Network Routes Center Assets • Cloud dense: ~3,000 Cloud & IT service providers • Interconnected ecosystems: 428,000+ Total Interconnections • 2022 expecte
Slide 18: Pressing Our Advantage in All Markets
Pressing Our Advantage in All Markets Equinix global reach expanding across 69 metro areas and 30 countries 6 Continents 30 Countries 69 Metro areas 244 Data centers AMERICAS EMEA ASIA-PACIFIC 27 Metros 29 Metros 13 Metros % of Customers in Platform Equinix • Geographic footprint is 104 Data Centers
Slide 19: xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership
xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership Phase Phase Phase Cost Recent Activity JV Status Opening ($M) Capacity (MW) Leasing (MW) • Closed our Australian JV with PGIM in Q1 2022, Mexico City 3x-1 JV Ready Q3 2022 $58 4 0 which is expected to provide more than 55 Americas megaw
Slide 20: Customer Revenues Mix
Customer Revenues Mix Diversified Revenues across Customer, Region and Industry segments Customers and Churn Q1 22 Revenues Mix Top 10 Customers (1) Rank Type of Customer %MRR Region Count IBX Count 1 Cloud & IT 2.6% 3 76 2 Cloud & IT 2.6% 3 76 EMEA 3 Cloud & IT 2.3% 3 56 Enterprise 32% 4 Cloud & IT
Slide 21: Non-Financial Metrics
Non-Financial Metrics (1) (2) (1) Non-financial metrics exclude xScale JVs and GPX and Packet acquisitions (2) MRR per Cab excludes xScale JVs, Infomart non-IBX tenant income and GPX and Packet acquisitions. MRR per Cab includes Brazil, Colombia, Axtel, Bell Canada assets and Bit-isle MIS beginning
Slide 22: Equinix Announced Retail IBX Expansions
Equinix Announced Retail IBX Expansions (1) As of Q1 2022 Cabinet Equivalent 2022 2023 2024 Total Capex(1) Capacity In Expansion Highlights IBX Data Center Status Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 $US millions Ownership Future Phases MX2 phase 2 (Mexico City) Previously Announced 850 $54 Owned 1,050 • W
Slide 23: Real Estate Ownership and Long-Term Leases
Real Estate Ownership and Long-Term Leases (1) Own 126 of 244 Data Centers, totaling 18.0M of 28.2M total gross square feet Recurring Revenues by Global Lease Portfolio Expiration Waterfall (3) Ownership (2) % Leases Renewing by Square Footage Last Possible Expiration Date 67% Owned Lease 60% >=2037
Slide 24: Same Store Operating Performance
Same Store Operating Performance (1) Revenues ($M) Cash Cost, Gross Profit and PP&E ($M) Cash Cost Trailing 4-Qtr Inter- Services/ Total Non- Total of Cash Gross Cash Gross Gross Cash Return on Category Colocation connection Other Recurring recurring Revenues Revenues Profit Margin % PP&E Gross PP&E
Slide 25: Consolidated Portfolio Operating Performance
Consolidated Portfolio Operating Performance (1) Cabinets Billed Q1 22 Revenues ($M) Total Cabinet Owned % of Cabinet Cabinets Utilization Total Total Category # of IBXs Capacity Billed % Recurring Recurring Americas Owned (2) 58 97,700 73,700 75% $513 Leased 45 38,400 31,200 81% $217 Americas Total
Slide 26: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New Acquisition xScale Owned Leased Atlanta 5 AT2, AT3, AT4, AT5 AT1 AT4 AT1, AT2, AT3, AT5 Change Summary (1) Bogota 1 BG1 BG1 Boston 1 BO2 BO2 Calgary 3 CL1, CL2 CL3 CL3 CL1, CL2 Expansion to Stabilized Chicago 5 CH1, CH2, CH4, CH7
Slide 27: Data Center Portfolio Composition
Data Center Portfolio Composition Metro Count Stabilized Expansion New Acquisition xScale Owned Leased Abidjan 1 Abidjan 1 Abidjan 1 Abu Dhabi Accra 1 1 AD1 Accra 1 Accra 1 AD1 Change Summary (1) (2) Amsterdam 9 AM1, AM2, AM3, AM5, AM6, AM8 AM4, AM7, AM11 AM1*, AM2*, AM3*, AM4*, AM5, AM6, AM7* AM8,
Slide 28: Adjusted Corporate NOI
(1) Adjusted Corporate NOI ($M, except # of IBXs) Calculation Of Adjusted Corp NOI Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 (1) # of IBXs 232 232 230 225 224 (2) Recurring Revenues $1,618 $1,581 $1,545 $1,529 $1,497 Recurring Cash Cost of Revenues Allocation (508) (497) (471) (454) (434) Cash Net Ope
Slide 29: Adjusted NOI Composition – Organic
Adjusted NOI Composition – Organic (1) Q1 2022 Q1 2022 Total Cabinet Recurring Quarterly # of Cabinet Cabinets Utilization Revenues Adjusted NOI Category IBXs Capacity Billed % ($M) ($M) % NOI Stabilized Owned (2) 69 142,800 124,200 87% $742 $485 50% Leased 95 96,000 82,800 86% $532 $313 32% Stabili
Slide 30: Components of Net Asset Value
Components of Net Asset Value Operating Portfolio Q1 22 Quarterly Ownership Reference Adjusted NOI Adjusted NOI ($M) Stabilized Owned Adjusted NOI Segments $485 Stabilized Leased Adjusted NOI Segments $313 Expansion Owned Adjusted NOI Segments $106 Expansion Leased Adjusted NOI Segments $64 Other Re
Slide 31: Shares Forecast
Shares Forecast (M) Fully Diluted Weighted Average Shares Common Stock Outstanding 91.0 -0.3 ~91.6 0.5 90.6 ~91.4 90.0 89.8 89.6 0.8 1.6 1.7 1.6 1.4 1.4 90.6 Shares Est. Employee Est. Shares Est. Weighted Est. Weighting Est. Fully Diluted Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Outstanding @ Equity Awards Out
Slide 32: Capital Expenditures Profile
Capital Expenditures Profile ($M) © 2022 Equinix.com 32
Slide 33: FX Rates, Hedging and Currencies
FX Rates, Hedging and Currencies (4) Currency % of Revenues Revenue FX Rates (2) Blended (4) Guidance Blended % of CHF Currency Hedge Rate Guidance (3) (4) GBP Rate (1) (2) Hedge % Revenues 1% Rate EUR 9% HKD USD 1.00 40% 19% 3% AUD EUR to USD 1.11 1.17 1.15 63% 19% 4% GBP to USD 1.31 1.33 1.32 69%
Slide 34: 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 35: Industry Analyst Reports
Industry Analyst Reports Solution Category Reports • Achieving Business Agility Using Interconnected Hybrid Networks - IDC, 7/21 Interconnection • Datacenter Colocation & Interconnection Services 2021 Vendor Assessment - IDC, 6/21 • Equinix: The Global Digital Platform Facilitator - IDC, 1/21 • The
Slide 36: 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 Berenberg Nate Crossett krymill@equinix.com BMO Capital Mark
Slide 37: Appendix: Non-GAAP Financial Reconciliations & Definitions
Appendix: Non-GAAP Financial Reconciliations & Definitions © 2022 Equinix.com 37
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations © 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 Consolidated NOI calculation Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 (unaudited and in thousands) Revenues $ 1,734,447 $ 1,706,378 $ 1,675,176 $ 1,657,919 $ 1,596,064 Non-Recurring Revenues (NRR) (1) 83,844 85,766 97,808 92,658 80,899 Other Revenues (2) 32,770 39,287 32,630
Slide 44: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Income from Operations $ 267,316 $ 249,725 $ 282,121 $ 278,654 $ 297,662 Adjustments: Depreciation, Amortization and Accretion Expense 436,386 428,764 419,684 417,758 394,318 Stock-based Compensation Expens
Slide 45: 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 46: Definitions: Non-financial Metrics, IBX growth, REIT and Capital Expenditures
Definitions: Non-financial Metrics, IBX growth, REIT and Capital Expenditures Non-financial Metrics MRR per Cab: Monthly recurring revenues per billed cabinet: (current quarter monthly recurring revenues / 3) divided by ((quarter end cabinets billing prior quarter + quarter end cabinets billing curr
Slide 47: Equinix: Where Opportunity Connects
ull FQUINIX WHERE OPPORTUNITY CONNECTS