Slide 1: Forward-Looking Statements
This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding CBRE’s future growth momentum, operations, business outlook, financial performance, market share, earnings and adjusted EPS ex
Slide 2: Conference Call Participants
Conference Call Participants Bob Sulentic President and Chief Executive Officer Gil Borok Deputy Chief Financial Officer and Chief Accounting officer Jim Groch Chief Financial Officer Steve Iaco Investor Relations and corporate communications
Slide 3: Full year 2015 global results
Full year 2015 global results First firm in our sector to exceed $10 billion in revenue and $1.4 billion in normalized EBITDA Strategic gains across CBRE: Materially stronger Occupier Outsourcing business Brought together transaction and advisory for integrated Leasing solutions Market share gains i
Slide 4: Full year 2015 Performance Overview
Full year 2015 Performance Overview Revenue Fee Revenue1 EBITDA Normalized EBITDA2 Fee Revenue Margin3 Net Income4 EPS4,5 2015 $ 10,856 M $ 7,730 M $ 1,297 M $ 1,413 M 18.3% GAAP $ 547 M $ 1.63 Adjusted $ 689 M $ 2.05 2014 $ 9,050 M $ 6,791 M $ 1,142 M $ 1,166 M 17.2% GAAP $ 485 M $ 1.45 Adjusted $
Slide 5: Full Year 2015 Business Line Revenue
Revenue ($ in millions) Contractual Revenue Sources Leasing Capital Markets Other Occupier Outsourcing1 Asset Services1 Investment Management Valuation Leasing Sales Commercial Mortgage Services Development Services Other Total Gross Revenue 2015 $ 4,035 $ 1,025 $ 461 $ 504 $ 2,524 $ 1,696 $ 480 $ 5
Slide 6: Q4 2015 Performance Overview
Q4 2015 Performance Overview Revenue Fee Revenue1 EBITDA Normalized EBITDA2 Fee Revenue Margin3 Net Income4 EPS4,5 Q4 2015 $ 3,700 M $ 2,555 M $ 428 M $ 518 M 20.3% GAAP $ 180 M $ 0.53 Adjusted $ 271 M $ 0.81 Q4 2014 $ 2,787 M $ 2,173 M $ 392 M $ 412 M 19.0% GAAP $ 204 M $ 0.61 Adjusted $ 227 M $ 0.
Slide 7: Q4 2015 Region Highlights
Q4 2015 Region Highlights (% Increase in Local Currency) Regional Business Overview Americas EMEA Asia Pacific Fee Revenue 17% Ex. acquired GWS 9% Fee Revenue 36% Ex. acquired GWS 12% Fee Revenue 27% Ex. acquired GWS 11%
Slide 8: Q4 2015 Business Line Revenue
Revenue ($ in millions) Contractual Revenue Sources Leasing Capital Markets Other Occupier Outsourcing1 Asset Services1 Investment Management Valuation Leasing Sales Commercial Mortgage Services Development Services Other Total Gross Revenue Q4 2015 $ 1,598 $ 265 $ 142 $ 144 $ 851 $ 525 $ 136 $ 17 $
Slide 9: Occupier Outsourcing highlights
Q4 Full Year New 18 115 Expansions 15 102 Renewals 18 76 Occupier outsourcing Global Workplace Solutions integration activities proceeding as planned 2015 total contracts reach new high Continued strong growth in: International markets Health care Data centers 2015 TOTAL CONTRACTS1 Facilities Manage
Slide 10: Global Investment Management
Global Investment management CAPITAL RAISED1 ASSETS UNDER MANAGEMENT (AUM) ($ in billions) ($ in billions) Financial results Revenue Carried Interest Asset Management Acquisition, Disposition, Incentive & Other Capital to deploy: approx. $4.8 billion3 Co-Investment: $145.1 million3 ($ in millions) Q
Slide 11: Development Services
Full Year Revenue Pro-forma Revenue3 Development Services 1 $131.1 million of co-investments at the end of Q4 2015 $12.4 million in repayment guarantees on outstanding debt balances at the end of Q4 2015 Financial results PROJECTS IN PROCESS/PIPELINE ($ in billions) ($ in millions) 2 Revenue Q4 Q4 F
Slide 12: Key 2015 financial takeaways
Normalized EBITDA up 21% for the year and 26% for the quarter Achieved a margin of 18.3% on fee revenue in 2015 $3 billion of available liquidity Key 2015 financial takeaways .
Slide 13: 2016 Business Outlook
Occupier Outsourcing revenue anticipated to continue low double-digit growth before the contributions from the acquired Global Workplace Solutions business Leasing revenue expected to increase at a high single-digit rate Capital Markets (Property Sales and Commercial Mortgage Services) revenue estim
Slide 14: Supplemental slides and GAAP Reconciliation tables
Supplemental slides and GAAP Reconciliation tables
Slide 15: Footnotes
Footnotes Slides 5 & 7 Fee revenue is gross revenue less both client reimbursed costs largely associated with employees that are dedicated to client facilities and subcontracted vendor work performed for clients. Normalized EBITDA excludes (from EBITDA) certain carried interest incentive compensatio
Slide 16: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule ($ in millions) $2,600 million revolving credit facility matures in January 2020. As of December 31, 2015, the revolving credit facility balance was zero. As of December 31, 20151 Global Cash Global Cash Available Revolving Credit Facility 425 3,068 34 45
Slide 17: Capitalization
Capitalization Excludes $70.2 million of cash in consolidated funds and other entities not available for Company use at December 31, 2015. Outstanding amount is reflected net of unamortized debt issuance costs. Excludes $1,750.8 million of warehouse facilities for loans originated on behalf of FHA a
Slide 18: Americas revenue
($ in millions) Occupier Outsourcing & Asset Services1 Leasing Sales Gross Fee2 Q4 2015 $ 831 $ 305 $ 600 $ 334 USD3 52% 72% 3% 8% Local Currency3 54% 75% 5% 10% Local Currency ex. GWS3 11% 13% 5% 10% Occupier Outsourcing and Asset Services revenue excludes associated leasing and sales revenue, most
Slide 19: EMEA revenue
($ in millions) Occupier Outsourcing & Asset Services1 Leasing Sales Gross Fee2 Q4 2015 $ 840 $ 341 $ 163 $ 118 USD3 126% 93% 11% 17% Local Currency3 135% 103% 22% 8% Local Currency ex. GWS3 23% 29% 22% 8% EMEA revenue Q4 2015 fee revenue up 26% in USD or 36% in local currency Occupier Outsourcing a
Slide 20: Asia Pacific revenue
($ in millions) Occupier Outsourcing & Asset Services1 Leasing Sales Gross Fee2 Q4 2015 $ 189 $ 70 $ 87 $ 73 USD3 125% 102% 5% 7% Local Currency3 134% 111% 4% 23% Local Currency ex. GWS3 25% 11% 4% 23% Asia Pacific revenue Q4 2015 fee revenue up 14% in USD or 27% in local currency Occupier Outstandi
Slide 21: U.S. Market Statistics
U.S. VACANCY U.S. ABSORPTION TRENDS (in MSF) 4Q14 4Q15 1Q16F 4Q16F 4Q14 4Q15 2015 2016F Office 14.0% 13.4% 13.1% 12.5% 16.4 12.3 53.9 55.0 Industrial 10.2% 9.6% 9.7% 9.7% 79.4 39.7 215.1 139.6 Retail 11.4% 11.4% 10.7% 9.5% 6.4 12.0 25.7 56.6 U.S. Market Statistics Source: CBRE Econometric Advisors (
Slide 22: Other Financial Metrics
Other Financial metrics Twelve Months Ended December 31, ($ in millions) 2016 Forecast 2015 2014 Depreciation $ approx. 150 $ 138.7 $ 126.5 Normalized amortization 1 approx. 110 88.8 72.5 Net interest expense approx. 140 112.6 105.8 Normalized income taxes 383.5 300.2 Normalized income tax rate 35.5
Slide 23: Non-GAAP financial measures
Non-Gaap financial measures The following measures are considered “non-GAAP financial measures” under SEC guidelines: (i) Fee revenue (ii) Net income attributable to CBRE Group, Inc., as adjusted (which we also refer to as “adjusted net income”) (iii) Diluted income per share attributable to CBRE Gr
Slide 24: Reconciliation of revenue to fee revenue
Three Months Ended December 31, Twelve Months Ended December 31, ($ in millions) 2015 2014 2015 2014 Occupier Outsourcing revenue 1 $ 1,598.1 $ 766.1 $ 4,034.9 $ 2,794.4 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work perfo
Slide 25: Reconciliation of revenue to fee revenue by segment
Three Months Ended December 31, ($ in millions) 2015 2014 Americas revenue $ 1,971.1 $ 1,620.5 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work performed for clients 526.5 369.0 Americas fee revenue $ 1,444.6 $ 1,251.5 EMEA
Slide 26: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Three Months Ended December 31, Twelve Months Ended December 31, ($ in millions) 2015 2014 2015 2014 Normalized EBITDA $ 517.6 $ 412.4 $ 1,412.7 $ 1,166.1 Adjustments: Cost containment expenses 40.4 - 40.4 - Carried interest incentive compensation expense 25.6 20.4 26.1 23.8 Integration and other co
Slide 27: Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS
Three Months Ended December 31, Twelve Months Ended December 31, ($ in millions, except per share amounts) 2015 2014 2015 2014 Net income attributable to CBRE Group, Inc. $ 180.0 $ 204.3 $ 547.1 $ 484.5 Cost containment expenses, net of tax 28.6 - 28.6 - Amortization expense related to certain intan
Slide 28: Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings Per Share
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE ($ in millions, except per share amounts) Net income attributable to CBRE Group, Inc. Cost containment expenses, net of tax ‘Amortization expense related to certain intangible assets attributable to acquisitions, net