EQUINIX, INC. Investor
Presentation
Q1 2024
© 2024 Equinix, Inc.
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 actual results to differ materially from the expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; increased costs to procure power and the general volatility in the global energy market; foreign currency exchange rate fluctuations; stock price fluctuations, the challenges of acquiring, operating and constructing IBX data centers and developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built-out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to potential cybersecurity breaches; risks related to our taxation as a REIT; risks related to regulatory inquiries or litigation and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. Refer to our annual report on Form 10-K filed with the SEC on February 16, 2024 and our quarterly report on Form 10-Q filed with the SEC on May 8, 2024. In addition, Equinix does not assume any obligation to update the forward-looking information contained in this presentation.
Non-GAAP Information
This presentation contains references to certain non-GAAP financial measures. For definitions of terms including, but not limited to, "Cash Gross Profit," "Cash Gross Margins," "Cash SG&A," "Adjusted EBITDA," "Funds From Operations," "Adjusted Funds From Operations," and "Adjusted Net Operating Income," and a detailed reconciliation between the non-GAAP financial results presented in this presentation and the corresponding GAAP measures, please refer to the supplemental data and the appendix of this presentation.
Changes to Prior Period
We converted the presentation of disclosures from thousands to millions in the first quarter of 2024. Certain rounding adjustments have been made to prior period disclosed amounts.
© 2024 Equinix, Inc. 2
Equinix Business Update
© 2024 Equinix, Inc. | 3 |
Key Priorities at Equinix
Investing to extend our competitive advantage
CAPITAL ALLOCATION
STRATEGIC PRIORITIES
- Investing in our people
- Evolving our platform and service portfolio
- Expanding our global reach
- Simplifying and scaling our business
Organic Investments | Return of | ||
• | Expansion of platform | ||
Capital | |||
• | Increase ownership | ||
• | Consistent | ||
• | Invest in technology | ||
dividend growth | |||
initiatives |
DELIVERING VALUE FOR SHAREHOLDERS
AFFO per
Share Growth
FINANCIAL PRIORITIES
• | Maintain investment | Strategic Acquisitions | ||
grade status | Recent | Significant | ||
• | Optimize financial flexibility | IXEurope | Verizon | |
Switch and | Data Centers | |||
Bell | Data | Metronode | ||
ALOG | ||||
Telecity Group | ||||
© 2024 Equinix, Inc. 4 |
Dividend
Yield
Return on Invested Capital
Digital demand continues to accelerate with a series of catalysts creating a cumulative effect
2000s
Web,
Social and SaaS
Consumer demand and aaS acceleration lay the groundwork for enterprise transformation
2010s
Cloud
Ignites a
multi-decade
transformation of
enterprise IT
2020-2022
Pandemic
Fans the flames
of Digital
Transformation
2023+
AI
Fuel on the fire to transform business and society
© 2024 Equinix, Inc. 5
A data and application driven world places different demands on digital infrastructure
More | More | More ecosystem- | More | More |
distributed | cloud-connected | enabled | on-demand | sustainable |
REACH | INTER- | ECOSYSTEMS | TRUST | SUSTAINABIILTY |
CONNECTION | ||||
© 2024 Equinix, Inc. 6
Platform Equinix - Our Competitive Advantage(1)
Equinix global reach expanding across 71 metro areas and 33 countries
6 | Continents | 33 | Countries | 71 Metro areas 260 Data centers |
Interconnected Ecosystems
29 Metros
109 Data Centers
99.999%+
reliability
28 Metros | 14 Metros |
95 Data Centers | 56 Data Centers |
10,000+
customers
13,000+
employees
468k+
inter-
connections(2)
100%
renewable
power pledge
-
World's infrastructure provider with
10,000+ customers and 468,000+(2) total interconnections - 2,000+ networks and 3,000+ cloud and IT companies
Unmatched Global Reach
- Differentiated global platform with $40 billion of invested capital
- 64% of recurring revenues from customers deployed across all 3 regions
High Quality & Consistency
Top 10 customers (on average) are deployed in 75+ IBX®s, and make up 17% of recurring revenues
- As of Q1 2024
- Total interconnections include both cross-connects and virtual connections
© 2024 Equinix, Inc. 7
- 99.999%+ uptime record
- 100% renewable power pledge
Becoming the Trusted Center of a Cloud-First World
Curating Interconnection Ecosystems Remains a Strategic Priority with 2023 Interconnection revenue growing 10% year over year (3)
Networking | ||||
Density | Peering | |||
Interconnection | Enterprise | Community | ||
Cloud & IT | ||||
Clusters | ||||
CDM | ||||
Digital | Number of Interconnections | |||
Payments | Individual | |||
IoT | ||||
Conceive | Capture | Cluster | Curate | |
Diversity of Participants |
- Percentage of Cloud Edge Nodes only includes markets where Equinix has an IBX
- Cloud Provider Websites as of March 2024
- Year over year growth rate on a normalized and constant currency basis
~40% of Hyperscale Cloud On-ramp Nodes are in Equinix (1)
(Public Multi-Cloud and Network Density)(2)
AWSAzure
Others | 41% | Others | 45% |
Market | Market | ||
share | share | ||
Others | Google Cloud | Oracle | |
41% | Others | 49% | |
Market | Market | ||
share | |||
share | |||
Integrated with Dynamic Hybrid Applications
Customers | Mobile sales and | |
payments | ||
Privacy | Omni-channel | |
storefront | ||
Supplier | API | Digital |
services | ||
network | ||
Digital | Research |
products | |
and innovation | |
© 2024 Equinix, Inc. 8
xScale: Amplifying Our Balance Sheet to Extend Cloud Leadership
Recent Leasing Activity
- Leased 48MW of capacity since our last earnings call including ~14MW of capacity in EMEA and ~34MW of capacity in APAC
Overview
- Equinix owns 20% of the JVs while receiving fees for managing and operating the xScale facilities
- Our global xScale portfolio will represent more than $8 billion invested and greater than 725 megawatts of power capacity when fully built out
Benefits
- JV operating structures enable the company to pursue strategic Hyperscale deployments while minimizing dilution to Equinix returns and preserving the company's balance sheet and investment capacity
- Equinix is leasing MD6, a portion of Madrid 3x from the EMEA 2 JV
- Equinix is leasing SL4, a portion of Seoul 2x from the APAC 3 JV
- Totals may not sum due to rounding
- Operational data centers include 14 open xScale facilities
- Includes all operational xScale facilities and announced projects
© 2024 Equinix, Inc. 9
AMER
EMEA
APAC
Total Portfolio
Phase | Cost | Phase | Phase | ||
JV Status | Capacity | Leasing | |||
Opening | ($M) | ||||
(MW) | (MW) | ||||
Silicon Valley 12x-1 | JV | Q2 2024 | $293 | 14 | 5 |
Mexico City 3x-1 | JV | Q1 2025 | $61 | 4 | 0 |
Madrid 3x-1(1) | JV | Open | $110 | 7 | 7 |
Paris 13x-1 | JV | Open | $247 | 14 | 14 |
Warsaw 4x-1 | JV | Q2 2024 | $113 | 5 | 5 |
Warsaw 4x-2 | JV | Q2 2024 | $23 | 5 | 5 |
Milan 7x-2 | JV | Q3 2024 | $32 | 5 | 5 |
Madrid 3x-2 | JV | Q3 2024 | $45 | 5 | 5 |
Madrid 3x-3 | JV | Q3 2024 | $9 | 2 | 0 |
Frankfurt 10x-1 | JV | Q1 2025 | $206 | 14 | 14 |
Madrid 4x-1 | JV | Q1 2025 | $119 | 10 | 10 |
Milan 7x-3 | JV | Q1 2025 | $67 | 10 | 10 |
Frankfurt 16x-1 | JV | Q2 2025 | $192 | 14 | 14 |
Warsaw 4x-3 | JV | Q2 2025 | $74 | 10 | 10 |
Seoul 2x-1(2) | JV | Open | $166 | 12 | 2 |
Osaka 4x-1 | JV | Q2 2024 | $150 | 14 | 14 |
Osaka 5x-1 | JV | Q1 2027 | $177 | 19 | 19 |
Capacity Under | 165 | 139 | |||
Development (3) | |||||
Operational | JV | Open | 220 | 209 | |
Data Centers (4) | |||||
Total Portfolio(3) (5) | 384 | 348 |
The Three Pillars of ESG (1)
Our Future First sustainability strategy inspires us to dream of a better future
Environment
Do what it takes
to protect the planet
- Achieved a 24% Reduction in operational emissions from 2019 base-line, making material progress toward our Global 2030 Climate-NeutralGoal aligned with a Science-BasedTarget
- 96% Renewable Coverage globally against our 100% Renewable Energy Goal and over 90% every year since 2018
- Leveraging Green Finance to align our investments. Since 2020, issued and fully allocated $4.9B in Green Bonds
- Equinix was named to CDP's A List for second consecutive year
Social
Do more for each other to unleash potential
- Partnered with 47 organizations to advance digital inclusion funded by Equinix Foundation in the first year of operations
- Building a Diverse and Inclusive Culture and Company with 9
EECNs, 38 WeAreEquinix teams, and 17% increase in women employees globally - Promoting Health and Wellness and a Culture where All Employees Thrive, drove higher adoption of our EAP and aligned global benefits for a diverse workforce
- Connecting Our Communities with $1.9M Donations and Grants and 11% increase in employee volunteering hours YoY
Governance
Do what's right
to lead the way
- Board ESG Oversight, with 40% of the Board Members women
-
Global Ethics and Responsibility,
100% completion of Anti- bribery and Corruption Training - Aligning executive compensation for VP-leveland above tied to our sustainability progress
- Public Policy & Advocacy, leader of the EU Climate-
Neutral DC Pact - Promoting Supply Chain
Sustainability & Diversity, engaging suppliers on climate change and ESG
Awards and recognition
In 2023, we received recognition for our sustainable operations, innovations and commitment to building an ethical, inclusive place to work:
APR 2024
- Data derived from FY 2023 Equinix CSR Report published on April 25, 2024
© 2024 Equinix, Inc. 10
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Disclaimer
Equinix Inc. published this content on 17 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 May 2024 23:31:01 UTC.
