Equinix Inc June 2014 Company Presentation.pdf

© 2014 Equinix Inc. www.equinix.com
Strengthening the Moat
Charles Meyers | COO
Disciplined Execution and Focused Investments

© 2014 Equinix Inc. www.equinix.com 2
Agenda
The Equinix
Difference
KPIs Reflect
Strategic Focus
1 2
Global Business
Alignment
3
Evolving the Go-
to-Market Engine
4
•Superior
Customer Value
•Best Hand in the
Business
•Disciplined
Execution
Strengthening
Yield
•Key Trends
Reflect Market
Focus
•Delivering a
Global Value
Proposition
•Curating Digital
Ecosystems
•Consistent Global
Delivery
•Right Targets
•Right Offers
•Right Distribution
Channels
•Right Sales and
Marketing
Execution

Superior Customer Value
Platform strengths directly address customer problems
• Application performance
• Speed to market
• Global reach
• Revenue growth
• Total cost of ownership
• Scalability
• Reliability and resiliency
• Execution agility
• Data sovereignty
• IT security
• Sustainability
CUSTOMER
NEEDS:
Networked Data Centers
Foundation of network
neutrality and density – 975+
network service providers
Customer Ecosystems
Interconnected ecosystems –
4,500+ customers with 130K
+ cross connects
Global Footprint
Unmatched global scale and
reach – 101 data centers in
32 metros across 15
countries
Business Reputation
Operational excellence –
reliability / customer
experience and financial
strength

Best Hand in the Business
Clear leadership on key value drivers(1)
Source: Public Filings
(1) Revenues are FY 13; Countries, Networks, Customers and Cross Connects are Q1 14

Agenda
The Equinix
Difference
KPIs Reflect
Strategic Focus
Global Business
Alignment
3
Evolving the Go-
to-Market Engine
4
•Superior
Customer Value
•Best Hand in the
Business
•Disciplined
Execution
Strengthening
Yield
•Key Trends
Reflect Market
Focus
•Delivering a
Global Value
Proposition
•Curating Digital
Ecosystems
Delivery
•Right Targets
•Right Offers
Channels
•Right Sales and
Marketing
Execution
2
1

Disciplined Execution Strengthening Yield
Operational alignment with strategy driving strong cabinet yield
Deep Site Analytics
Supply-Side and
Demand-Side Actions
Focus on Ecosystems,
Driving Interconnection
Right Deals in the Right
Locations
Phased Build Strategy
Focused Power
Management
ROIC Metric
MRR per Cabinet and MRR Churn as % of MRR Billing
+10.1%
MRR/CAB

Key Trends Reflect Market Focus
Primary drivers of customer lifetime value are trending positively
Multi-Metro Revenue Segmentation Interconnection Revenues
and Cross Connects Per Cabinet

Agenda
The Equinix
Difference
KPIs Reflect
Strategic Focus
Global Business
Alignment
Evolving the Go-
to-Market Engine
4
•Superior
Customer Value
•Best Hand in the
Business
•Disciplined
Execution
Strengthening
Yield
•Key Trends
Reflect Market
Focus
•Delivering a
Global Value
Proposition
•Curating Digital
Ecosystems
Delivery
•Right Targets
•Right Offers
Channels
•Right Sales and
Marketing
Execution
1 2 3

Delivering a Global Value Proposition
Globally aligned, locally delivered
Support
Operate
Build
Design

• Global Consistency
– Finalizing globally consistent design guidelines
– Adoption and execution of 15 high impact systems
• Design Standards
– Effective, efficient and reliable design standards
– Build target average global PUE of 1.4
– New builds incorporate leading edge design elements:
! Electrical: High efficiency UPS, transformers and distribution elements
! Mechanical: Intelligent cooling systems, variable frequency drives for
cooling fans and cold and hot air containment
• Site Augmentation
– Existing data center high IRR augmentation projects
! Retrofits: Cooling systems and UPSs
! Enhancements: Intelligent control and chiller operation optimization
! Yielding greater power cost efficiency and increased revenue
generating capability
Design

• Expansion Approval
– Disciplined cross-functional business case review of strategic, competitive,
operational and financial aspects of expansion projects
• Site Selection
– Rigorous site selection criteria that includes fiber access, power availability
and proximity to key business drivers
• Cost Management
– Build cost accounting framework, competitive benchmarking and value
engineering efforts in place
• Capital Efficiency
– Phased / modular design and delivery in line with fill-rate to ensure optimal
expansion capital deployment
• Scalability
– Delivered 40+ expansion projects globally over past two years
Build

• Management Oversight
– Central global operations group focused on driving globally consistent
customer experience
– KPI alignment around IBX availability, commit compliance, PUE and
customer satisfaction
• Operational Alignment
– Global standardization of operational processes
– Effective predictive and preventative maintenance practices
– Site physicals and rigorous focus on incident root cause analysis
(lessons learned)
• Global Procurement
– Global power and high value equipment procurement program
– Achieving 3-5% incremental cost reductions on our already disciplined
procurement
• Sustainability
– Increased focus measuring and reporting metrics
– ~25% of our energy purchases are from renewable sources,
with Europe leading the way
Operate

• Client Services
– Named Client Service Manager for each customer serving as the single point of
contact for deployment project management and all post sales issues
– Equinix Service Desk proving 24/7 first level support in seven languages
– Equinix Customer Portal driving majority of cross connect and Smart Hands order
volume, with features that include reports, access management and ecosystem info
• IBX Operations Support
– Subject Matter Experts with expertise in electrical, mechanical, controls, equipment,
HVAC, operations, training and compliance, focused on continuous improvement
– Engineering staff focus on monitoring, reporting, corrective action and safety issues
– IBX Technicians are responsible for installation, maintenance and Smart Hands
– Warehouse Specialists manage customer / internal shipments and spare parts
• Network Operations Center (NOC)
– Globally aligned structure across three regions (Singapore, London and Silicon Valley)
– NOC staff are responsible for network monitoring, trouble shooting, customer
network provisioning and incident / maintenance management
– Network Engineering staff focus on implementing and maintaining consistent
network platforms and supporting complex customer configurations
Support

Curating Digital Ecosystems
Retail excellence at global scale
+4,500
Customers
+260
Customer care
personnel
+36,000
Billing records per
month
+19,000
Service contracts
+500,000
Customer Care
interactions per QTR
57,750
Monthly activities
+550
Operating techs
+3,500
Employees
The Right
Solution
Quoting and
Contracting
Ordering and
Fulfillment
Issue Resolution Invoicing
+18,500
Individual
implementations
+200
Quota bearing sales
reps

PRODUCTS PROCESSES PORTALS PEOPLE
Harmonized product
catalog
Standardized policies
and processes
Enhanced global
customer portal
Informed employees
with clear focus to serve
customers first!
Moments
that Matter
The Right
Solution
Quoting and
Contracting
Ordering and
Fulfillment
Issue Resolution Invoicing
Global Consistency
Streamlined Interactions
Empowered Customers
2+ Years
70 Products
79 Business Processes
25 Systems Impacted (10 New)
400+ Project Team Members
2,400+ Training Participants
$50M+ Investment
Consistent Global Delivery
Investing in superior experience and scalability

Agenda
The Equinix
Difference
KPIs Reflect
Strategic Focus
Global Business
Alignment
Evolving the Go-
to-Market Engine
4
•Superior
Customer Value
•Best Hand in the
Business
•Disciplined
Execution
Strengthening
Yield
•Key Trends
Reflect Market
Focus
•Delivering a
Global Value
Proposition
•Curating Digital
Ecosystems
Delivery
•Right Targets
•Right Offers
Channels
•Right Sales and
Marketing
Execution
1 2 3

Go-to-Market Evolution
• Direct sales to
stimulate new markets
and drive key
relationships
• Multi-channel model to
expand Total
Addressable Market
• Shift from product
components to
business relevant
solutions
• Clear, credible and
quantifiable value
propositions
• Professional services
to increase close rates
• Customer
segmentation
• Predictive analytics for
propensity to buy
WHO:
Right Targets
• Precise targeting
• Deep account
planning
• Reduced sales drag
• Performance
management and
coaching
WHAT:
Right Offers
WHERE:
Right Distribution
Channels
HOW:
Right Sales and
Marketing Execution

Business problems
and buying behavior
Right Targets
The “WHO”: Customer segmentation and targeting
Financial
Services
Healthcare
Verticals
Network /
Mobility
Cloud & IT
Services
Content & Digital
Media
Energy Oil & Gas
• Improve performance
via distributed IT
architecture
• Access to customers
and end users
• Low latency exchange
• Cloud enablement
• Geographic footprint
and distribution
• Size, growth
• Cloud readiness
• Ecosystem behavior
350,000 Global Companies
>$10M Revenues; 500+ employees
285,000
have HQ near Equinix IBX
34,000 Multi-National Targets
>$100M Revenues
Service
Provider
Enterprise
Segments
Buying propensity and
size of wallet
Targets

Right Offers
The “WHAT”: Vertical go-to-market priorities
Equinix Offers
Enterprises
•Horizontal Enterprise
Pursuit
•Expand Financial
Ecosystem
•Incubate Emergent
Ecosystems
What
Targets?
Business
problems and
buying behavior
What
Priority?
Buying
propensity and
size of wallet
Service
Providers
•Drive Cloud Exchange
Integration
•Expand Mobility
Ecosystem
•Accelerate SaaS
Opportunity
•Grow Ad-IX Globally

Right Offers
The “WHAT”: Solution innovation continuum
Solution development
that allows customers
to leverage data
centers as a strategic
assets
Data Center Migration /
Consolidation
Application Performance
Acceleration
Network Transformation
Hybrid Cloud Design /
Implementation
Enabled Solutions
Equinix Value
Products
Performance Hub
Cloud Exchange
Data Center
Infrastructure
Management
Customer
Value
Cloud
Enabled
Services
Vertical
Solutions
Professional Services

Right Distribution Channels
The “WHERE”: Multi-Channel model
Partner Segments
Agents
• Referral Partners
• Sales Agents
• Master Agents
Channel
Field
and
inside
Professional
Services
Solution
architects
and sales
engineers
Resellers
• VARs
• Systems Integrators
• Managed Service
Providers
Platform Partners
• Global IaaS/PaaS
• Large Scale SaaS
• Network Service Providers
Strategy
• Create a scalable end-to-end
program
• Expand addressable market for
everyone
• Complete solutions with partners
• Create an army of Equinix
evangelists
• Promote channel harmony
Plan
• Segment channel
• Develop revenue and resource plan
• Field / HQ role and responsibility
alignment
• Update and refine all programs
• Drive incremental revenue

Right Distribution Channels
The “WHERE”: Significantly expanding indirect channels to pursue expanded TAM
Refining and delineating
various sales models
• Sell to
• Sell with
• Sell through
Prioritizing channel
harmony as market evolves
Accelerating agents as lead
gen source for field sales
System Integrators are key
avenue to accelerate
“solutions”
Platform partners drive
broad reach for well
packaged offers
Staged evolution of
traditional VAR channel
Mid-Market
Global 5000
Global 1000
Vertical Ecosystem
Magnets/Anchors
Service
Providers
Field
and
Inside
Sales
Agents
Referral
Platform
Partners
System
Integrators
Value
Added
Resellers
Channel
Addressable Market

Right Sales and Marketing Execution
The “HOW”: sales and marketing goals and focus
Flourishing
Ecosystems
A Winning Brand that
Grows
Successful End-to-
End Lead Generation
The Leading Portfolio
& Customer
Experience
The Tools, Training &
Value Props
Equipping Sales to
Win
Sales Structure &
Channel Design
Purposed for Global,
Enterprise Pursuit
Disciplined
Execution of Global
Selling

Closing Thought
• We have a highly differentiated strategy
• We are staking out a market position others will have
material difficulty trying to replicate
• We have the brand, business capabilities, global
reach and financial position to capture the opportunity
• We are aligning and driving global execution to
ensure success
#techtrends #winners #losers #whatnext?

Thank you

View from the Regions
Eric Schwartz
President
EMEA
Analyst Investor Day
Karl Strohmeyer
President
Americas
Samuel Lee
President
Asia-Pacific

Brazil
Canada
USA
Regional Growth and Revenue
2013 Growth
US GDP
3%
10%
US Revenue
EU GDP
0%
21%
EMEA Revenue
United Kingdom
Switzerland
France
Germany
UAE
Italy
Netherlands
AP GDP
7%
20%
AP Revenue
Australia
Hong Kong
China
Singapore
Japan
Americas
EMEA Asia Pacific
Americas
EMEA Asia Pacific
2013 Revenue

Delivering Value from Our
Market Advantage
Keith Taylor | CFO
Analyst Investor Day

Agenda
• Revenue Growth
Trend
• Country Financial
Portfolio
• Stable and
Diversified
Revenues Mix
• Better Before
Cheaper
• Gross Bookings
Trend
• Churn
Management
• Costs in Context
• Power Cost
Management
• Real Estate
Portfolio
• IBX Maintenance
Investment
• SG&A Cost
Leverage
• REIT Progress
• REIT Valuation
Metrics
• REIT Conversion
Impact
• FY13-14 Financial
Bridge
• LT Financial
Performance
• Capital Allocation
Driving TSR
• Investment
Thesis
• IBX Capacity
• Stabilized IBX
Growth
• Invested Capital
Efficiency
• Growth
Investment
Discipline
• Capital Structure
Optimization
Top Line
Growth
1
Bending the
Cost Curve
2
Capital
Management
3
REIT
Conversion
4
Value
Creation
5

2010A 2011A 2012A 2013A 2014E
Forecast
AMER
EMEA
APAC
22%
>11%
15%
28%
Revenue Growth Trend
Revenue Growth
CAGR Between 2010 –
2014E >15%
Includes acquisitions –
S&D, ALOG, AsiaTone &
ancotel as well as the
divestiture of 16 assets
Top-Line Growth
Above Market Rates
(1) See Form 8-K filed November 25, 2013 for discussion regarding revised financial results
(2) FY 2014 guidance as announced on Form 8-K filed April 30, 2014. This does not constitute an update or reiteration of such guidance
1,203
1,537
1,878
2,159
2,395
($M constant currency)
CAGR >15%
(2)
(1)
>
334
341
281
>236
16 assets
divested

Country Financial Portfolio
FY13A to FY14E YoY Growth
Q1
FY14
Cash
Gross
Margin
%
Solid growth and cash gross margin across portfolio(1)
Brazil
4%
China
1%
Singapore
7%
Canada
1%
United States
51%
Hong Kong
3%
Australia
4%
Japan
2%
UK
10%
France
3%
Germany
9%
Netherlands
4%
Switzerland
1%
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
90%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
Size = Total Revenues
(1) Does not include Dubai, Indonesia, and Italy

Stable and Diversified Revenues Mix
Recurring Revenues Customer Revenues Mix
5%
79%
16%
Product
Category
Intercon
Colocation
MIS
5%
95%
Recurring &
Non-
recurring
Recurring
Non-
recurring 26%
57%
17%
Region
Asia Pacific
Americas
EMEA
26%
24%
20%
9%
21%
Vertical
Financial
Services
Enterprise
Content &
Digital Media
Cloud & IT
Network
% of Revenues

Multi-Metro Customers
80%

Multi-Region Customers
65%

Customers in 3 Regions
46%

Top 50 Customers
36%

Top 10 Customers
14%

Top 10 Customers
Rank Type of Customer % Revenue
Region
Count
IBX Count
1 Cloud & IT Services(2) 2.2% 3 25
2 Cloud & IT Services 2.2% 3 16
3 Content & Digital Media 2.0% 2 10
4 Network 1.3% 3 37
5 Network 1.2% 3 48
7 Network 1.0% 3 72
8 Content & Digital Media 1.0% 3 20
10 Network 0.9% 3 18
(1) Revenues metrics are based on Q1 2014 reported recurring revenues
(2) Customer reported in the Content & Digital Media vertical for Q1 reported metrics
(1)

1,000
2,700
1,400 1,300
2,500
1,900
1,600
$1,862
$1,923 $1,913 $1,912 $1,909 $1,927
$1,956 $1,960
Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Better Before Cheaper
(1) Includes ancotel & AsiaTone acquisitions beginning in Q3 2012; excludes ALOG Cabs Billing Net Adds
(2) MRR per cab billing equals the Avg. Monthly MRR in Quarter/Avg. Ending Billed Cabs in last two quarters; excludes ALOG MRR per Cab billed
MRR Per Cab Billing & Cabs Billing Net Adds(2)
ancotel & AsiaTone
3,500(1)
Organic
800
4,300
Healthy MRR per cab yield enabled by the strength of our value proposition
$1,923

2008 2009 2010 2011 2012 2013 2014E
Gross Bookings Trend
Continued focus on driving quality of bookings
Annual $ Gross Bookings
• Maintained deal discipline for high-value
customers
• Cloud & IT Services and Content & Digital
Media verticals seeing strong new bookings
growth
• ~20% of bookings originate from other
regions
• >80% of quarterly bookings come from
existing customers
• 170 to 200 new customer additions per
quarter
Gross Bookings Composition

2008 2009 2010 2011 2012 2013 2014 E
Churn Management
MRR Churn at 2.3% per
QTR When Normalized
for Large Footprint
Churn
Customers migrating to
multi-tiered architecture
Revenue Retention
Strategy
Proactively negotiate
renewals
Enhance stickiness of
product offerings
LinkedIn
Yahoo!
3.7%
2.3% 2.3%
3.0%
2.3% 2.3%
2.1% 2.4% 2.5% 2.3%
0.0%
Q113 Q213 Q313 Q413 Q114 Q214E Q314E Q414E
5.0%
MRR
Churn
%
Quarterly MRR Churn % MRR
Proactive revenue retention program to manage base
Annual $ Churn
MMR churn as % beginning quarter MRR billed
ProForma MRR churn % without Yahoo! or LinkedIn

Agenda
• REIT Progress
• REIT Valuation
Metrics
• REIT Conversion
Impact
Bridge
• LT Financial
Performance
Driving TSR
• Investment
Thesis
• IBX Capacity
• Stabilized IBX
Growth
Efficiency
• Growth
Investment
Discipline
Optimization
Top Line
Growth
1
Bending the
Cost Curve
2
Capital
Management
3
REIT
Conversion
4
Value
Creation
5
• Revenue Growth
Trend
Portfolio
• Stable and
Diversified
Revenues Mix
• Better Before
Cheaper
• Gross Bookings
Trend
• Churn
Management
• Power Cost
Management
• Real Estate
Portfolio
• IBX Maintenance
Investment
• SG&A Cost
Leverage

Costs in Context
Cash Opex
Focus on efficiency related to
labor, power & rent
Capex
Continued discipline around
both expansion & ongoing
Capex
Cash Interest & Tax
Net cash interest will
decrease due to convertible
debt exchanges
Cash taxes will decrease due
to planned REIT conversion
and European tax structuring
37%
21%
12%
9%
6%
4%
11%
Cash Opex
Other
Repairs & Maintenance
Other Cost of Revenues
Outside Services
Rent
Power
Labor
68%
32%
Capex
Ongoing
Expansion
(1) FY13 Financials; Cash opex is defined as cost of revenues, sales and marketing and general and administrative expenses less depreciation, amortization,
accretion and stock-based compensation
63%
37%
Cash Interest & Tax
Cash Tax
Cash Interest
(1) (1) (1)
Predominantly fixed and predictable cost structure
70%

Power Cost Management
Energy
Efficiency
Power
Procurement
Risk
Management
Sustainability
• Target average IBX PUE of 1.4
• New IBXs: High impact electrical & mechanical design
improvements
• Existing IBXs: Investment in high IRR retrofits & enhancements
• Average fully-loaded unit cost of power in FY13 was ~$0.11 per
kilo watt hour
• In de-regulated energy markets (~60% of our exposure) we take
a three year point of view and run a competitive bid process for
~80% of usage with the goal of optimizing for a blend of price and
predictability
• Customer contracts include a power protection clause
• Metered power in FY13 was 8% of power revenue
• In de-regulated energy markets, we have ~90% of our projected
FY14 usage under contract
• ~25% of our energy purchases are from renewable
sources
14.3%
12.6%
11.8%
10.9% 10.8%
FY09 FY10 FY11 FY12 FY13
Power Cost % of Revenue
Influencing all the underlying levers of the power expense line

Real Estate Portfolio
Owned vs. Leased(1)
0 1% 0 1% 0% 0% 1%
4%
0%
3% 1% 0% 2% 2%
83%
21
37%
80
63%
IBX Counts MRR Contribution %
Leased
Owned
(1) As of Q1’14; Owned IBXs include the following: DC1, DC2, DC4, DC5, DC6, NY2, SV1, AM1, AM2, FR4, FR5, LD4, CH3, DC11, LA4, SV5, SH3, AM3, FR2, LD5, PA4. Owned assets defined
as title to land or long-term ground lease
(2) This lease expiration waterfall presents when leased square feet would be renewed if we assume all available renewal options would be exercised
Lease Expiration(2)
• Leases renewing by square footage
• Last possible expiration date
8 leases
2 leases
Equinix has long-term control over assets economic life

IBX Maintenance Investment
Maintenance Cost Trend Illustrative Maintenance Cost Breakdown
Maintenance & Repairs Opex
Daily, monthly, quarterly & annual repairs & service to achieve useful life
of assets
Paint, Clean & Maintain IBX:
• Genset oil change and tuneup
• Infra-Red scan and inspection of UPS; change worn capacitors/caps
• Maintain chillers and cooling towers belts and fans
• Switchgear maintenance includes infra-red scan & testing
Maintenance Capex
New & replacement assets installed to extend life of an IBX
Replace Improvements, Infrastructure & Fixtures. Accounting useful life and
estimated cost per unit(2)
• $700K GenSet/15 yrs
• $180K UPS/10 yrs
• $250K Chiller/12 yrs
• $170K Cooling tower/20 yrs
• $650K Switchgear/15 yrs
(2) Maintenance CapEx replacement costs are based on SV1 and do
not include installation labor
Maximize economic life of IBX assets
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
$M
$10M
$20M
$30M
$40M
$50M
$60M
$70M
$80M
$90M
2012 2013 2014
Maint. OpEx Maint. CapEx OpEx % to Rev CapEx % to Rev
E
(1) Maintenance CapEx is one portion of Recurring Capex; this chart does not include
Single Point of Failure
(1)

SG&A Cost Leverage
Cash SG&A Cost Trend Equinix Customer One
Cash
SG&A
15.0%
20.0%
25.0%
$M
$100M
$200M
$300M
$400M
$500M
$600M
2010 2011 2012 2013 2014
Cash Sales & Marketing Cash General & Administrative
% Revenues Proforma % Revenues
(1) ProForma % of Revenues represents what % would be excluding costs of REIT
& Equinix Customer One (ECO) special projects
(1)
Global customer experience and bending the cost curve are the
pillars of Equinix Customer One
Investing in process and systems to enable efficient global scalability
E

Agenda
• REIT Progress
• REIT Valuation
Metrics
• REIT Conversion
Impact
Bridge
• LT Financial
Performance
Driving TSR
• Investment
Thesis
• IBX Capacity
• Stabilized IBX
Growth
Efficiency
• Growth
Investment
Discipline
Optimization
Top Line
Growth
1
Bending the
Cost Curve
2
Capital
Management
3
REIT
Conversion
4
Value
Creation
5
• Revenue Growth
Trend
Portfolio
• Stable and
Diversified
Revenues Mix
• Better Before
Cheaper
• Gross Bookings
Trend
• Churn
Management
• Power Cost
Management
• Real Estate
Portfolio
• IBX Maintenance
Investment
• SG&A Cost
Leverage

IBX Capacity
Significant cab capacity available to support near term growth expectations
56,000 58,300
41,800
44,800
24,100
28,100
Q114 Capacity Announced Capacity
Asia Pacific
EMEA
Americas
Adds 9,300
121,900
131,200
92,300 Billing
29,600
76% Utilization
24% Available
38,900
(1) Includes ALOG
(1) (1)

Stabilized IBX Growth
• Stabilized IBX growth driven by
ecosystems
– 12% YoY interconnection revenue growth
• Expansion IBX growth fueled by new
bookings
– 27% YoY colocation revenue growth
– 23% YoY interconnection revenue growth
• New IBXs are positioned to follow in the
footsteps of earlier builds
Stabilized, Expansion & New IBXs(1)
(1) New IBXs where Phase 1 began operating after January 1, 2013
Expansion IBXs where Phase 1 began operating before January 1, 2013, and there is an expected
expansion of one or more additional phases leveraging the existing capital infrastructure, or a new phase has
opened for a previously Stabilized IBX after January 1, 2013
Stabilized IBXs where the final expansion Phase began operating before January 1, 2013
(2) Revenues represent Q1 2014 Reported Revenues in millions; excludes $1.7M allocated to non- IBXs
excluded in this analysis (example disaster recovery sites)
Healthy Growth Profile
69 398
23
175
9
6
# of IBXs Revenues
New
Expansion
Stabilized
26%
YoY%
6%
(1) (2)

(3,545)
1,591
1,112
38
(4,000)
(3,000)
(2,000)
(1,000)
-
1,000
2,000
Investment (Gross
PP&E)
Revenues Cash Gross Profit Cash Maintenance
and SPOF CapEx
Invested Capital Efficiency
Stabilized IBX Profitability(1)
• Stabilized IBX now includes all 69
stabilized IBXs globally
– Previously focused on the organic 26 U.S. IBX
data centers
• Stabilized IBXs generate similar cash
gross margins globally
– 31% cash gross margins from 69 global
stabilized Same IBXs
(1) Stabilized IBX includes 69 IBXs where the final expansion Phase began operating before January 1, 2013
(2) Investment (Gross PP&E) includes real estate acquisition costs, capitalized leases and all ongoing capex
associated with same IBXs since opening
(3) Q1 2014 annualized; excludes Revenues & Cash Costs from non-IBXs (example disaster recovery sites)
(4) Q1 2014 annualized cash maintenance & single point of failure (SPOF) capex
(5) Cash generation on gross investment calculated as Q1’14 cash gross profit annualized divided by Gross PP&E
as of Q1’14
(2)
(3) (3)
(4)
~31% annual Cash
Gross Margin on Gross
PP&E investment(5)
High Return on Capital
45% of
Investment
70% Cash
Gross
Profit Margin
2% of
Revenues
Investment
(Gross PP&E)(2)
($B)

Growth Investment Discipline
Organic IBX Capital Expenditures Real Estate, New Markets and M&A
Activity
Real Estate
Purchases
New Market
Expansions
Mergers &
Acquisitions
Prioritization of investments governed by rigorous cross-functional review of
strategic, competitive, operational and financial aspects of opportunities
2014
Priority 4
Priority 3
Priority 2
Priority 1
Ongoing
($M)
FY14 CapEx Guidance =
$550M to $650M

Capital Structure Optimization
(1)
(2)
Capitalization
Pro Forma
Debt Maturity
Pro Forma(4)
FY14
FY15
FY16
FY17
FY18
FY19
&
thereafter
Convertible Debt Extinguishment
Loans Payable & Capital Leases
Convertible Debt
Senior Notes
37
59
76
234 239
2,781
• $2.25B Senior Notes mature from 2020 to 2023
• Blended borrowing rate of 5.91%
(1) Includes cash, cash equivalents, short-term and long-term investments (excludes restricted cash)
(2) Excludes debt discount of $41M as of 3/31/14 related to the 4.75% convertible notes
(3) $212M remaining on current authorization for share repurchase announced December 4, 2013
(4) Represents principal payments only
• 2014 3% convertible: Exchanged $217M for 1.95M
shares & $5.4M in cash
• 2016 4.75% convertible: Exchanged $216M for 2.41M
shares & $52.4M in cash
• 1.22M shares repurchased year to date
• In total we have repurchased 1.53M shares at a weighted
average price of $188.67 through June 20, 2014(3)
• In total we have spent $288.5M of the $500M approved
repurchase program

Agenda
• REIT Progress
• REIT Valuation
Metrics
• REIT Conversion
Impact
Bridge
• LT Financial
Performance
Driving TSR
• Investment
Thesis
• IBX Capacity
• Stabilized IBX
Growth
Efficiency
• Growth
Investment
Discipline
Optimization
Top Line
Growth
1
Bending the
Cost Curve
2
Capital
Management
3
REIT
Conversion
4
Value
Creation
5
• Revenue Growth
Trend
Portfolio
• Stable and
Diversified
Revenues Mix
• Better Before
Cheaper
• Gross Bookings
Trend
• Churn
Management
• Power Cost
Management
• Real Estate
Portfolio
• IBX Maintenance
Investment
• SG&A Cost
Leverage

REIT Progress
On Track for REIT
Conversion 1/1/15
Systems Go-Live on
Schedule
Active Dialog on PLR
REIT Systems Conversion Project Timeline
October
2013
Prepare
and Plan
December
2013
Design
May
2014
Build
June
2014
Test &
Train
July
2014
Go Live
2H
2014
Operate &
Optimize
2H
2014
Validate
January
2015
Convert
WIP
WIP
WIP
WIP
We are here

$163
$-
$163
$-
$164
$-
$173
$-
$171
$-
$50
$100
$150
$200
$250
$300
Other
Recurring capex
Cash Taxes
Interest
AFFO
REIT Valuation Metrics
FFO, AFFO and Adjusted EBITDA
per Diluted Share(1)
Adjusted EBITDA to AFFO Breakdown
(1) Includes all shares that would be dilutive from the assumed conversion
of the 2014 & 2016 convertible notes and adjusts for interest expense for
the notes
($M)
$241
$248 $248
$264 $260 Adjusted EBITDA
Diluted AFFO per share for last 12 months is $11.91
Definition of Recurring Capex is in progress and is approximately 5.0%
of revenues. Includes: Maintenance, Single Point of Failure, IT, Product,
Network, HQ and Reconfiguration Installation CapEx
$2.26
$1.28
$2.48 $2.47 $2.52
$2.93 $2.91 $2.94
$3.10 $3.09
$4.16
$4.27 $4.28
$4.55 $4.50
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
NAREIT FFO AFFO Adjusted EBITDA

REIT Conversion Impact
Growth Strategy
Capital Raising
Dividend Policy
Qualifying REIT
Subsidiaries
REIT Qualification Tests

Agenda
• REIT Progress
• REIT Valuation
Metrics
• REIT Conversion
Impact
Bridge
• LT Financial
Performance
Driving TSR
• Investment
Thesis
• IBX Capacity
• Stabilized IBX
Growth
Efficiency
• Growth
Investment
Discipline
Optimization
Top Line
Growth
1
Bending the
Cost Curve
2
Capital
Management
3
REIT
Conversion
4
Value
Creation
5
• Revenue Growth
Trend
Portfolio
• Stable and
Diversified
Revenues Mix
• Better Before
Cheaper
• Gross Bookings
Trend
• Churn
Management
• Power Cost
Management
• Real Estate
Portfolio
• IBX Maintenance
Investment
• SG&A Cost
Leverage

FY13-14 Financial Bridge
Adjusted EBITDA Share Count
Cash Flow
(2) Since guidance is not provided for ending cash forecast, this estimate
was derived by taking beginning cash & cash equivalents and
investments and adjusting for known changes to cash and estimating
cash from operating activities starting with adjusted EBITDA
(1) FY 2014 guidance as announced on Form 8-K issued April 30,
2014. This does not constitute an update or reiteration of such guidance
(3) As of June 20, 2014; $212M of the $500M
approved for stock repurchase is still available
($M) ($M)

558
655
>720
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
0
100
200
300
400
500
600
700
800
2008 2009 2010 2011 2012 2013 2014
ADFCF AFFO Diluted AFFO per Share
LT Financial Performance
Revenue and Adjusted EBITDA(1) Adjusted Discretionary Free Cash Flow and
Adjusted Funds From Operation
($M)
(4) Midpoint of range of $620M to $650M provided in Q1 Earnings call and as
announced on Form 8-K issued April 30, 2014. This does not constitute an
update or reiteration of such guidance
$705
$878
$1,189
$1,566
$1,887
$2,153
$292
$404
$525
$722
$888
$1001
42%
46%
44%
46%
47% 46%
46%
48% 48% 48%
2008 2009 2010 2011 2012 2013 2014E
Revenue Adjusted EBITDA
Adjusted EBITDA Margin Proforma Adjusted EBITDA Margin
>$2,395(2)
>$1,105(2)
(1) FY2007-FY2013 results as reported on Form 8-K issued April 30, 2014
(2) FY 2014 guidance as announced on Form 8-K issued April 30, 2014. This does not constitute an update or
reiteration of such guidance
(3) Proforma for Special Projects costs from FY12-FY14
($M)
(3)
635
(4)
($ dollar)
E

Capital Allocation Driving TSR
Capital Allocation Total Shareholder Returns
Real Estate &
IBX
Expansion
M&A & New
Markets
Balance
Sheet
Management
Capital
Repatriation
• Prioritize ecosystem hubs and new growth
markets
• Acquire real estate in key franchise metros
• Evaluate strategic and tactical acquisitions
• Explore new market expansion opportunities
• Target net leverage of 3-4x adjusted EBITDA;
• Convertible Note exchange for cash and
shares; mitigate future dilution post-REIT
conversion
• Share repurchase program currently active
• Sustaining dividend post-REIT conversion
Growth
Profitability
Cash
Generation
Risk
• Target 2013-2017 CAGR at or above the
market growth rate of ~10%
• Selective M&A activity
• Target ~50% LT adjusted EBITDA margin
• Improving operating profit, capital efficiency,
EPS and AFFO per share
• Prioritize expansion capital expenditures
• Drive down cash interest and taxes
• Enable capital repatriation to shareholders
• Strong fiscal discipline on operating
and capital expenditures
• Appropriate level of debt and
liquidity on balance sheet

Investment Thesis
The data center is a strategic asset solving customer business
challenges in a cloud centric world
Equinix is the best expression of the multi-tenant data center growth
theme:
• Capitalizes on powerful secular themes & the innovation of others
• Unique global assets – very difficult to replicate
• Attractive financial attributes – sticky customers & operating leverage
• High return on investment opportunities
• Experienced management team with track record of creating value
#techtrends #winners #losers #whatnext?

Thank you

Appendix

Non-GAAP Reconciliations – Constant Currency

Non-GAAP Reconciliations – FFO

Non-GAAP Reconciliations – AFFO

Non-GAAP Reconciliations: AFFO to Adjusted EBITDA

Non-GAAP Reconciliations: Adjusted Discretionary Free Cash Flow
(1) (1) (1) (1)
(1)

Non-GAAP Reconciliations: Adjusted EBITDA

Fully Diluted Shares

Ongoing vs Recurring CapEx Comparison
(2)
(1) Equinix has revised non-GAAP ongoing CapEx so that it aligns with Recurring & Non-Discretionary expectations for data center REIT’s. The new revised recurring capex will be used for AFFO calculations
(2) Other data center REITs do not include installation CapEx in their recurring CapEx; however, we plan to include reconfiguration installation CapEx in our recurring CapEx calculation
(3) Corporate Special Projects are evaluated according to these criteria: Transformational spending that is Non-recurring and Discretionary and typically expands the revenue base

(1) Equinix has revised non-GAAP ongoing CapEx so that it aligns with Recurring & Non-Discretionary expectations for data center REIT’s. The new revised recurring capex will be used for AFFO calculations
(2) Other data center REITs do not include installation CapEx in their recurring CapEx; however, we plan to include reconfiguration installation CapEx in our recurring CapEx calculation.
REIT Revised CapEx Presentation
Recurring CapEx
Equinix Legacy CapEx Presentation
(1)
(1)
(2)

REIT Conversion Costs & Cash Income Taxes
Description Value/Cash impact
D&A Recapture • Reclassifying Equinix assets as “real estate” results in a tax liability due to
longer depreciation and amortization lives
• IRS requires a “recapture” of tax that would have been due
• U.S. tax liabilities related to D&A recapture expected to be
approximately $360 to $380 million. $193 million has been settled
to-date
• Ratably over the four-year period starting 2012
E&P Purge • REIT rules require the “purging” of all previously undistributed accumulated
earnings and profits
• Impacted by depreciation recapture
• Shareholder distributions estimated to range between $700 to
$1,100 million
• REIT conversion and shareholder E&P distribution pending a
favorable PLR from the IRS
• Expected to be paid out in a combination of up to 20% in cash
and at least 80% in Equinix common stock
• Anticipate making an E&P distribution before 2015, with the
balance distributed in 2015. Potential Foreign E&P distribution
may be subject to U.S. taxation.
One-Time Implementation
Costs
• Legal, tax, and accounting advisory fees; audit fees, and related overhead
• System conversions
• Expected to range between $75 to $85 million
• Paid $10 million (opex) in Q1 2014
• In 2014, expect to incur incremental $37 million in SG&A (opex)
and $16 million in capex; $11 million in Q2 FY14 SG&A (opex)
Recurring Operational Costs • Additional advisory and audit fees, headcount, and related overhead • Approximately $5 to $10 million annually
• Starting in 2015
Estimated Worldwide Cash
Income Taxes(1)
• Company expects to be full cash taxpayer in 2013 and 2014 before
anticipated REIT conversion (i.e. no NOLs to offset tax obligations)
• Expect to pay $145 to $200 million in 2014 (includes portion due
to D&A recapture); ~$35 million non-REIT related
(1) REIT conversion is contingent upon receipt of a favorable PLR from the IRS, Board approval and completion of other necessary actions. The REIT conversion may trigger a re-evaluation of the US
deferred tax assets in 2014. This may result in a significant write-off of our US deferred tax assets to income tax expense for the year, which is not a cash tax expense. 2014 cash income tax estimate
does not include taxes from any potential foreign E&P distributed, if any. For additional information and risks, refer to our Form 10-Q for the quarter ended September 30, 2013 filed November 12,
2013, and our Form 10-K to be filed for the year ended December 31, 2013

Definitions of Non-GAAP Measures and Other Terms
Non-GAAP Information
- This presentation contains references to certain non-GAAP financial measures. For definitions of terms such as “NAREIT Funds From Operations (NAREIT FFO)”, “Adjusted Funds
from Operations (AFFO)”, “Cash Cost of Revenues”, “Cash Gross Profit”, “Cash Gross Margin”, “Cash SG&A”, “Adjusted EBITDA”, please refer to the below definitions.
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 disposition of real estate property, impairment charges related to depreciable real estate fixed assets, plus real estate related
depreciation and amortization expense and after adjustments for unconsolidated joint ventures, and non-controlling interests.
Adjusted Funds from Operations (AFFO)
- We calculate AFFO by adding to or subtracting from NAREIT FFO:
1. Plus: Amortization of deferred financing costs
2. Plus: Stock-based compensation expense
3. Plus: Non-real estate depreciation, amortization and accretion expenses
4. Less: Recurring capital expenditures
5. Less/Plus: Straight line revenue/rent expense adjustments
7. Less/Plus: Gain/loss on debt extinguishment
8. Plus: Restructuring charges and acquisition costs
9. Less/Plus: Non-cash portion of income tax expense
10. Less/Plus: Adjustments from discontinued operations, unconsolidated JVs and non-controlling interests
Cash Cost of Revenues
- We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation.
Cash Gross Profit
- We define cash gross profit as revenues less cash cost of revenues.

Definitions of Non-GAAP Measures and Other Terms
Cash Gross Margin
- We define cash gross margin as cash gross profit divided by revenues.
Cash SG&A
- We define cash selling, general and administrative expenses, which comprise of two categories of expenses.
1. Cash general and administrative expense, and
2. Cash sales and marketing expenses
Adjusted EBITDA
- We define adjusted EBITDA as income from continuing operations plus depreciation, amortization, accretion, stock-based compensation expense, impairment charges, restructuring
charges and acquisition costs.

Equinix Inc June 2014 Company Presentation.pdf

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Equinix Inc June 2014 Company Presentation.pdf