Slide 1: Q2 2023 CBRE Earnings Call
CBRE Q2 2023 CBRE Earnings Call
Slide 2: Contents
Contents Page # Section 5 Bob Sulentic, CEO Remarks 6 Emma Giamartino, CFO Remarks 11 Appendix 16 Non-GAAP Measures and Definitions 19 Supplemental Slides, GAAP Reconciliation Tables
Slide 3: Forward-Looking Statements
Q2 2023 EARNINGS CONFERENCE CALL Forward-Looking Statements This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the economic outlook, our business plans and our
Slide 4: Conference Call Participants
Q2 2023 EARNINGS CONFERENCE CALL Conference Call Participants i Bob Sulentic President & Chief Executive Officer Emma Giamartino Chief Financial Officer M/ Brad Burke Senior Vice President, Investor Relations & Strategic Finance 2023 CBRE, Inc. | 4
Slide 5: Consolidated Results Summary
Q2 2023 EARNINGS CONFERENCE CALL Consolidated Results Summary - CBRE’s results slightly exceeded our expectations, despite weaker capital markets activity, due to growth in resilient lines of business, notably GWS - Performance was notable when considering prior year Q2 represented record level of C
Slide 6: Advisory Services
Q2 2023 EARNINGS CONFERENCE CALL 1 1 - Total Advisory net revenue declined 21% in Q2 against a difficult prior year comparison Advisory Services y in ag Prior year comp $ in millions, totals may not sum due to rounding - Capital markets revenue declined 44% in Q2, compared to a 13% increase in the p
Slide 7: Global Workplace Solutions (GWS)
Q2 2023 EARNINGS CONFERENCE CALL Global Workplace Solutions (GWS) $ in millions, totals may not sum due to rounding Net Revenue $2,205 $1,956 $672 Q2'22 Q2'23 =Facilities Mangement ™ Project Management - GWS net revenue grew by 13%, with both Facilities Management and Project Management growing by d
Slide 8: Real Estate Investments
Q2 2023 EARNINGS CONFERENCE CALL Real Estate Investments REI segment SOP declined significantly from last year’s record quarter. Development operating profit in Q2 2022 exceeded Development operating profit in any full year except 2021. Nearly all Investment Management business line operating profit
Slide 9: Capital Allocation
Q2 2023 EARNINGS CONFERENCE CALL Capital Allocation CBRE Capital Allocation (S billions) FY 2019 to 2Q’23 = M&A $3.1 Incremental debt capital raised during Q2 and July provides even more capacity to invest while maintaining investment grade balance sheet Robust M&A pipeline — evaluating multiple opp
Slide 10: Updated 2023 Outlook
---- 02 2023 EARNINGS CONFERENCE CALL Updated 2023 Outlook Previous Outlook Updated Outlook Core EPS Low-to-mid double digit Core EPS decline Core EPS to decline by 20% to 25% Advisory Segment Outlook anticipated low-teens SOP decline Expect Advisory SOP to decline approximately 20% GWS Segment Outl
Slide 11: Appendix
Appendix
Slide 12: Revenue
Q2 2023 EARNINGS CONFERENCE CALL Revenue $ in millions, totals may not sum due to rounding ® Advisory © Global Workplace Solutions (GWS) @ Real Estate Investments (REI) $7771 $272 $7,720 ($318) ($156) ($63) ($14) (0.7%) vs. Q2’22 (+0.8% LC) Q2'22 Sales Leasing Rest of Adv. OMSRs Gws REI Pass-through
Slide 13: Core EBITDA
Q2 2023 EARNINGS CONFERENCE CALL Core EBITDA $in millions, totals may not sum due to rounding ® Advisory © Global Workplace Solutions (GWS) @ Real Estate Investments (REI) $919 $14 G19 14) $7 ($241) (45.2%) vs. Q2’22 (44.2% LC) Q2'22 Advisory OMSRs GWS REI Corporate Ex OMSRs Overhead Definitions and
Slide 14: TTM Q2'23 Revenue
Q2 2023 EARNINGS CONFERENCE CALL TTM Q2’23 Revenue $ in millions, totals may not sum due to rounding Global o Property Loan n Property Investment Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total® Solutions Revenue TTM Q2'23 $3,653 $1,952 $419 $310 $732 $1,877 $
Slide 15: Q2'23 Revenue
Q2 2023 EARNINGS CONFERENCE CALL Q2’23 Revenue $in millions, totals may not sum due to rounding Global o Property Loan n Property Investment oy Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total“ Revenue Q2'23 $814 $398 $90 $79 $180 $481 $5,426 $104 $151 $7,720 L
Slide 16: Non-GAAP Measures and Definitions
Non-GAAP Measures and Definitions
Slide 17: Non-GAAP Financial Measures
Q2 2023 EARNINGS CONFERENCE CALL Non-GAAP Financial Measures The following measures are considered “non-GAAP financial measures” under SEC quidelines: i Net revenue ii Core EBITDA iil Business line operating profit/loss iv. Segment operating profit on revenue and net revenue margins v. Net debt vi C
Slide 18: Definitions
02 2023 EARNINGS CONFERENCE CALL Definitions Core EBITDA: Core EBITDA represents earnings, inclusive of non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization, asset impairments, adjustments related to cer
Slide 19: Supplemental Slides, GAAP Reconciliation Tables
Supplemental Slides, GAAP Reconciliation Tables
Slide 20: Debt, Leverage and Liquidity
Q2 2023 EARNINGS CONFERENCE CALL Debt, Leverage and Liquidity $ in millions, totals may not sum due to rounding CBRE Capital Structure as of June 30, 2023 Revolving Credit Facilities $583 Current portion LTD 436 4.875% Senior Notes, due 2026 597 2500% Senior Notes, due 2081490 ( 5.950% Senior Notes,
Slide 21: Summarized Cash Flow Activity
Q2 2023 EARNINGS CONFERENCE CALL Summarized Cash Flow Activity $in millions, totals may not sum due to rounding Six Months Ended June 30, 2023 2022 Net cash (used in) provided by operating activities (756) 61 Net cash used in investing activities (369) (329) Net cash provided by (used in) financing
Slide 22: Other Financial Metrics
Q2 2023 EARNINGS CONFERENCE CALL Other Financial Metrics Totals may not sum due to rounding Three Months Ended, June 30, March 31, December 31, September June 30, (Sin millions) 2023 2023 2022 30, 2022 2022 OMSR Gains $211 $16.7 $28.7 $34.7 $35.4 Amortization ($371) ($36.5) ($38.5) ($39.4) ($44.6) Q
Slide 23: Reconciliation of Net Income to Core Adjusted Net Income and Core EPS
Q2 2023 EARNINGS CONFERENCE CALL Reconciliation of Net Income to Core Adjusted Net Income and Core Earnings Per Share $ in millions, except for per share data, totals may not sum due to rounding Three Months Ended June 30, 2023 2022 Net income attributable to CBRE Group, Inc. $2014 $487.3 Plus / min
Slide 24: Reconciliation of Net Income to Core EBITDA
Q2 2023 EARNINGS CONFERENCE CALL Reconciliation of Net Income to Core EBITDA $ in millions, totals may not sum due to rounding Twelve Three Months Ended June 30, Months Ended June 30, 2023 2022 2023 Net income attributable to CBRE Group, Inc. $2014 $487.3 $846.0 Net income attributable to non-contro
Slide 25: Reconciliation of Revenue to Net Revenue
Q2 2023 EARNINGS CONFERENCE CALL Reconciliation of Revenue to Net Revenue $in millions, totals may not sum due to rounding Three Months Ended June 30, 2023 2022 Revenue $7,720 $7,771 Less: Pass through costs also recognized as revenue 3,242 2,969 Net Revenue $4,478 $4,803 2023 CBRE, Inc. |25
Slide 26: Reconciliation of Revenue to Net Revenue and Net Margin
Q2 2023 EARNINGS CONFERENCE CALL Reconciliation of Revenue to Net Revenue and Net Margin $in millions, totals may not sum due to rounding Three Months Ended June 30, 2023 2022 Advisory Revenue $2,042 $2,588 Less: Pass through costs also recognized as revenue 21 7 Advisory Net Revenue $2,020 $2,571 A
Slide 27: Reconciliation of Revenue to Net Revenue and Net Margin
Q2 2023 EARNINGS CONFERENCE CALL Reconciliation of Revenue to Net Revenue and Net Margin $in millions, totals may not sum due to rounding Three Months Ended June 30, 2023 2022 Global Workplace Solutions revenue $5,426 $4,908 Less: Pass through costs also recognized as revenue 3,221 2,952 Global Work
Slide 28: Reconciliation of Revenue to Net Revenue and Net Margin
Q2 2023 EARNINGS CONFERENCE CALL Reconciliation of Revenue to Net Revenue and Net Margin $in millions, totals may not sum due to rounding Three Months Ended June 30, 2023 2022 Global Workplace Solutions Facilities Management revenue $3,687 $3,820 Less: Pass through costs also recognized as revenue 2
Slide 29: Reconciliation of Net Margin
Q2 2023 EARNINGS CONFERENCE CALL Reconciliation of Net Margin $in millions, totals may not sum due to rounding Three Months Ended June 30, 2023 2022 Real Estate Investments net revenue $256 $277 Real Estate Investments Segment Operating Profit $33 $275 Real Estate Investments net margin 13.0% 99.0%
Slide 30: Reconciliation of REI Business Line Operating Profit
Q2 2023 EARNINGS CONFERENCE CALL Reconciliation of Real Estate Investments Business Line Operating Profit to Segment Operating Profit $in millions, totals may not sum due to rounding Three Months Ended June 30, 2023 2022 Investment Management Operating Profit 37 58 Development Operating Profit (9) 2
Slide 31: Reconciliation of TTM REI Business Line Operating Profit
Q2 2023 EARNINGS CONFERENCE CALL Reconciliation of TTM Real Estate Investments Business Line Operating Profit to Segment Operating Profit $in millions, totals may not sum due to rounding Twelve Months Ended June 30, 2023 2022 Investment Management Operating Profit 147 210 Development Operating Profi
Slide 32: Reconciliation of Resilient Revenue
Q2 2023 EARNINGS CONFERENCE CALL Reconciliation of Resilient Revenue $in millions, totals may not sum due to rounding Three Months Ended June 30, Three Months Ended June 30, 2023 2022 Revenue cocacasisatiin peNEt | Revenue cosuccoseudsin p_Net revenue revenue Loan Servicing 79 - 79 85 - 85 Valuation
Slide 33: Reconciliation of TTM Net Income to TTM Core EBITDA
SUPPLEMENTAL SLIDES Reconciliation of TTM Net Income to TTM Core EBITDA $in millions, totals may not sum due to rounding Trailing twelve months ended, Q2 Q2 Q2 Q2 Q2 2023 2022 2021 2020 2019 Net Income attributable to CBRE Group, Inc $846 $2,007 $1,207 $1,148 $1,072 Net income attributable to non-co
Slide 34: Debt and Leverage
SUPPLEMENTAL SLIDES Debt and Leverage $in millions, totals may not sum due to rounding Cash Reveing an Senior coment Other | rotal DebtlLess: Cash| Net debt |TTM Core} Net Morehouse Nowe Parable Facility o notes — rye debt (net cash)| EBITDA |leverage! Cocina on Real Q2 2019 536 230 750 1,016 od 2 1