Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q4 2020 Earnings Presentation
22 slides from Cushman & Wakefield's earnings presentation, Feb 25, 2021
Slide 1: Q4 Earnings Presentation
CUSHMAN & WAKEFIELD Q 4 E A R N I N G S P R E S E N TAT I O N FEBRUARY 25, 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 Duncan Palmer Kevin Thorpe Len Texter Executive Chairman Chief Financial Officer Chief Economist Investor Relations & CEO & Global Controller CUSHMAN & WAKEFIELD / 4
Slide 5: Fourth Quarter and Full Year 2020 Business Update
FOURTH QUARTER AND FULL YEAR 2020 BUSINESS UPDATE › Q4 fee revenue of $1.6B, down 15% versus 2019 - PM/FM fee revenue up 1% year over year - Leasing and Capital Markets down 37% and 14%, respectively › Q4 Adjusted EBITDA of $198M, down 34% versus 2019 › Full Year Revenue of $5.5B down 14% versus 201
Slide 6: Macroeconomic Environment
MACROECONOMIC ENVIRONMENT Key Observations Real GDP Outlook Projections (Percent Change) › The pandemic continues to have a significant 2020 2021 economic impact Global -3.5 5.5 › Most projections assume there will be a widely distributed vaccine(s) by mid-2021 in most advanced U.S. -3.4 5.1 countri
Slide 7: Property Recovery
PROPERTY RECOVERY 2020 Q4 Q4 2020 2021 H1 H1 2021 201 H2 H2 2021 Key Observations Industrial / Industrial-logistics, Data Centers and Life Science: Logistics Recovering swiftly, benefitting from secular shifts and other accelerating trends. Alternatives* Multifamily Housing: Faces near-term headwind
Slide 8: Capital Markets Update
CAPITAL MARKETS UPDATE U.S. Sales Volume – All Property Types, $bil. National Price Index – All Property Types $90 160 COVID-19 COVID-19 Great Recession Recession 150 Great Recession Recession $80 140 $70 130 $60 120 $50 110 $40 100 $30 90 $20 80 $10 70 $0 60 Apr-08 Dec-06 Apr-10 Aug-07 Dec-08 Apr-1
Slide 9: Financial Overview
FINANCIAL OVERVIEW Ml | CUSHMAN & dE WAKEFIELD
Slide 10: Fourth Quarter & Full Year Financial Highlights
FOURTH QUARTER & FULL YEAR FINANCIAL HIGHLIGHTS USD in Millions, except for Adjusted EPS Fee Revenue Adjusted EBITDA Adjusted EPS $1,647 $198 Q4 (15)% (34)% $0.43 $5,466 $504 FY (14)% (31)% $0.81 Principally driven by lower Driven primarily by lower revenue brokerage activity due to COVID- partially
Slide 11: Q4 Fee Revenue by Segment
Q4 FEE REVENUE BY SEGMENT Fourth Quarter and Twelve Months Ended Performance (USD $m) Three Months Ended December 31, % Change Year Ended December 31, % Change 2020 2019 USD LC 2020 2019 USD LC Americas $1,117 $1,272 (12)% (12)% $3,747 $4,372 (14)% (14)% EMEA 293 330 (11)% (16)% 866 929 (7)% (8)% AP
Slide 12: Q4 Fee Revenue by Service Line
Q4 FEE REVENUE BY SERVICE LINE Fourth Quarter and Twelve Months Ended Performance (USD $m) Three Months Ended December 31, % Change Year Ended December 31, % Change 2020 2019 USD LC 2020 2019 USD LC Prop, Fac & Proj Management $797 $779 2% 1% $2,970 $2,949 1% 1% Leasing 389 606 (36)% (37)% 1,276 1,9
Slide 13: Americas – Q4 Performance
AMERICAS – Q4 PERFORMANCE Fourth Quarter and Twelve Months Ended Performance (USD $m) Three Months Ended December 31, % Change Year Ended December 31, % Change 2020 2019 USD LC 2020 2019 USD LC Prop, Fac & Proj Management $546 $513 7% 7% $2,048 $1,941 5% 6% Leasing 271 451 (40)% (40)% 943 1,508 (37)
Slide 14: EMEA – Q4 Performance
EMEA – Q4 PERFORMANCE Fourth Quarter and Twelve Months Ended Performance (USD $m) Three Months Ended December 31, % Change Year Ended December 31, % Change 2020 2019 USD LC 2020 2019 USD LC Prop, Fac & Proj Management $113 $94 21% 14% $376 $308 22% 20% Leasing 68 90 (24)% (28)% 194 251 (23)% (24)% C
Slide 15: APAC – Q4 Performance
APAC – Q4 PERFORMANCE Fourth Quarter and Twelve Months Ended Performance (USD $m) Three Months Ended December 31, % Change Year Ended December 31, % Change 2020 2019 USD LC 2020 2019 USD LC Prop, Fac & Proj Management $138 $173 (20)% (23)% $547 $700 (22)% (21)% Leasing 50 65 (23)% (27)% 139 180 (23)
Slide 16: 2021 Outlook
2021 OUTLOOK › Brokerage revenue expected to improve in 2021 for the full year › First quarter brokerage revenue expected to be down vs. 2019 › Expect low to mid single digit revenue growth in PM/FM for full year › Additional permanent cost actions in 2021 are expected to offset the unwind of tempor
Slide 17: Q&A
Q&A (i CUSHMAN & WAKEFIELD
Slide 18: Supplemental Slides and Reconciliations of GAAP to Non-GAAP Financial Measures
SUPPLEMENTAL SLIDES AND RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
Slide 19: Summary of Total Segment Revenues
SUMMARY OF TOTAL SEGMENT REVENUES Three Months Ended Three Months Ended Year Ended Year Ended (USD $m) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Americas Segment Service line fee revenue (1) $1,117.1 $1,271.6 $3,746.9 $4,372.2 Add: Gross contract reimbursables (2) 530.6
Slide 20: Summary of Total Costs and Expenses
SUMMARY OF TOTAL COSTS AND EXPENSES Three Months Ended Three Months Ended Year Ended Year Ended (USD $m) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Americas Fee-based operating expenses $990.4 $1,089.8 $3,423.3 $3,872.3 EMEA Fee-based operating expenses 251.0 265.7 792.9
Slide 21: Reconciliation of Net Income (Loss) to Adjusted EBITDA
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA Three Months Ended Three Months Ended Year Ended Year Ended (USD $m) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Net income / (loss) $(27.3) $3.1 $(220.5) $0.2 Add/(less): Depreciation and amortization(1) 52.1 73.9 26
Slide 22: Reconciliation of Net Income (Loss) to Adjusted Net Income
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME Three Months Ended Three Months Ended Year Ended Year Ended (USD $m, unless otherwise indicated) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Net income / (loss) $(27.3) $3.1 $(220.5) $0.2 Add/(less): Merger and ac