Colliers International Group Inc. · TSX:CIGI
Colliers International — Q3 2023 Earnings Presentation
18 slides from Colliers International's earnings presentation, Nov 2, 2023
Slide 1: Third Quarter 2023 Financial Results
1 Third Quarter 2023 Financial Results November 2, 2023
Slide 2: Forward-Looking Statements
Colliers 2 Forward-Looking Statements This presentation includes or may include forward-looking statements. Forward-looking statements include the Company’s financial performance outlook and statements regarding goals, beliefs, strategies, objectives, plans or current expectations. These statements
Slide 3: Highlights
Colliers 3 Highlights (US$ millions, except per share amounts) Three months ended %Change 2023 2022 September 30 USD LC (1) Revenue 1,056.0 1,108.3 -5% -6% Adjusted EBITDA 144.9 145.1 0% -1% Solid growth in high-value recurring Investment Management Adjusted EBITDA Margin 13.7% 13.1% and Outsourcing
Slide 4: Broad Diversification
Colliers 4 Broad Diversification Trailing twelve months ended September 30, 2023 TTM Q3 2023 Revenue by Service TTM Q3 2023 AEBITDA by Service 36% 25% 47% 58% 70% 30% Recurring Recurring 17% 11% 34% Outsourcing & Advisory Leasing Leasing and Capital Markets Investment Management Capital Markets Plea
Slide 5: Consolidated Revenues
Colliers 5 Consolidated Revenues Third Quarter (US$ millions) % Change over Q3 2022 USD LC Investment Management (1) 24% 23% Investment Management (1) 11 . Outsourcing & Advisory 14% 12% .1 Leasing -9% -9% 2. Capital Markets -42% -42% Outsourcing & 2 .2 Total -5% -6% Advisory Revenue Mix Q3 2023 Q3
Slide 6: Geographic Mix
Colliers 6 Geographic Mix Third Quarter (US$ millions) Q3 2023 Revenues Q3 2022 Revenues Q3 2023 AEBITDA Q3 2022 AEBITDA (1) Q3 2023 GAAP Operating Earnings: $42.0M Americas, $6.7M EMEA, $12.1M Asia Pacific, $20.4M Investment Management (2) Q3 2022 GAAP Operating Earnings: $59.9M Americas, $6.1M EME
Slide 7: Americas
Colliers 7 Americas Third Quarter (US$ millions) Revenues AEBITDA Lower market driven transaction activity, primarily in Capital Markets and, to a lesser extent, Leasing Outsourcing & Advisory growth led by Engineering & 2 . Design, Project Management and Property Management Outsourcing & as well as
Slide 8: EMEA
Colliers 8 EMEA Third Quarter (US$ millions) Revenues AEBITDA Significantly lower Capital Markets activity, particularly in Germany and the Nordics Higher Outsourcing & Advisory revenues (including recent acquisitions) Outsourcing & 3. 11 . Advisory Adjusted EBITDA impacted by reduction in higher-ma
Slide 9: APAC
Colliers 9 APAC Third Quarter (US$ millions) Revenues AEBITDA Revenue decline attributable to lower Capital Markets activity partly offset by acquisitions Outsourcing & .1 Foreign exchange headwinds impacted revenues by 3% Advisory 3. 31.1 Leasing Adjusted EBITDA impacted by changes in service mix 3
Slide 10: Investment Management
Colliers 10 Investment Management Third Quarter (US$ millions) Revenues AEBITDA Growth driven by acquisitions and higher management fees from increased assets under management year over year 0. 0.0 $98.5 billion AUM as of September 30, 2023 Pass-through carried • Down 1% versus June 30, 2023 11 .1 i
Slide 11: Investment Management: Long-duration, highly differentiated AUM
Colliers 11 Investment Management Focus on long-duration, highly differentiated AUM AUM: $98.5B | FPAUM: $51.6B AUM by Asset Class AUM by Strategy AUM by Geography 50% 37% 78% 20% 22% 50% 4% 13% 26% Alternatives Infrastructure Traditional Real Estate Credit Perpetual Capital Long-dated Funds Managed
Slide 12: Capitalization & Capital Allocation
Colliers 12 Capitalization & Capital Allocation (US$ millions) September 30, 2023 December 31, 2022 September 30, 2022 Highlights Cash $ 168.6 $ 173.7 $ 190.5 • Leverage ratio of 2.4x Total Debt 1,642.6 1,439.1 1,152.3 Net Debt $ 1,474.0 $ 1,265.4 $ 961.7 • 56% of debt at fixed rates as of September
Slide 13: Outlook for 2023
Colliers 13 Outlook for 2023 (US$ millions) • For the seasonally strongest fourth quarter, Capital Markets and Leasing revenues expected to be down on a year over year basis • Robust growth (including the impact of recent acquisitions) in high value recurring service lines • Investment Management fu
Slide 14: Appendix
Appendix Reconciliation of non-GAAP measures
Slide 15: Reconciliation of GAAP earnings to adjusted EBITDA
Colliers 15 Reconciliation of GAAP earnings to adjusted EBITDA Three months ended Nine months ended (US$ thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Net earnings $ 29,376 $ 44,524 $ 63,470 $ 132,572 Income tax 18,096 25,097 38,112 70,034 Other income, inclu
Slide 16: Reconciliation of GAAP earnings to adjusted net earnings and adjusted EPS
Colliers 16 Reconciliation of GAAP earnings to adjusted net earnings and adjusted earnings per share Three months ended Nine months ended (US$ thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Net earnings $ 29,376 $ 44,524 $ 63,470 $ 132,572 Non-controlling inte
Slide 17: Reconciliation of net cash flow from operations to free cash flow
Colliers 17 Reconciliation of net cash flow from operations to free cash flow Three months ended Nine months ended (US$ thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Net cash provided by (used in) operating activities $ 42,153 $ 76,840 $ 8,558 $ (171,470) Con
Slide 18: Other Non-GAAP Measures
Colliers 18 Other Non-GAAP Measures Local currency revenue growth rate Fee paying assets under management and internal revenue growth rate measures We use the term fee paying assets under management (“FPAUM”) to represent only the Percentage revenue and AEBITDA variances presented on a local currenc
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