Slide 1: Q4 2023 Earnings Call
CBRE sere |r QO 4 92025 CBRE Earnings Call
Slide 2: Contents
Contents Page # Section 5 Bob Sulentic, CEO Remarks 6 Emma Giamartino, CFO Remarks 12 Appendix 17 Non-GAAP Measures and Definitions 20 Supplemental Slides, GAAP Reconciliation Tables
Slide 3: Forward-Looking Statements
Q4 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 capi
Slide 4: Conference Call Participants
Q4 2023 EARNINGS CONFERENCE CALL Conference Call Participants i M/ Bob Sulentic Emma Giamartino Brad Burke Chair & Chief Financial Officer Head of Investor Chief Executive Officer Relations & Treasurer 2024 CBRE, Inc. |4
Slide 5: Consolidated Results Summary
Q4 2023 EARNINGS CONFERENCE CALL Consolidated Results Summary - CBRE ended 2023 ona high note with fourth quarter year-over-year operating profit growth across all three of our business segments - Despite a difficult year for commercial real estate, we delivered the third-highest full-year earnings
Slide 6: CBRE's Business Mix is Increasingly Resilient
Q4 2023 EARNINGS CONFERENCE CALL CBRE’s Business Mix is Increasingly Resilient $ in millions, totals may not sum due to rounding Reportable Segment Operating Profit - Resilient businesses generated nearly $1.6 billion of SOP in 2023 and are expected to generate $1.8 billion of SOP in 2024 - Would re
Slide 7: Advisory Services
Q4 2023 EARNINGS CONFERENCE CALL Advisory Services - Total Advisory net revenue and SOP flat with prior year’s Q4 $ in millions, totals may not sum due to rounding - Modest leasing growth driven mostly by EMEA and APAC - Globally, higher office leasing offset slightly lower industrial activity - Wit
Slide 8: Global Workplace Solutions (GWS)
Q4 2023 EARNINGS CONFERENCE CALL - GWS net revenue and SOP continued to grow by double digits, supported by Global Workplace Solutions (GWS) - Notably strong organic growth in our GWS Local business $ in millions, totals may not sum due to rounding - Expansion of Turner & Townsend’s large-scale prog
Slide 9: Real Estate Investment Management and Development
Q4 2023 EARNINGS CONFERENCE CALL Real Estate Investment Management Development $ Millions $ Millions Investments other Other — Revenue, $20 $151 Revenue, $9 Development operating profit exceeded expectations, driven by $106 earlier-than-anticipated asset monetizations Asset Asset $27 Mgmt. Mgmt. $42
Slide 10: Capital Allocation
Q4 2023 EARNINGS CONFERENCE CALL Capital Allocation CBRE Capital Allocation (S billions) Pro Forma TTM Q1 2024 Capital Allocation Strategy = M&A / Other S14 - Ontrack to deploy more than $2 billion of capital for the 12 months ending Q1 2024 ™ Share Repurchases 0.5 - This capital deployment includes
Slide 11: 2024 Outlook
Q4 2023 EARNINGS CONFERENCE CALL 2024 Outlook Expect total Advisory net revenue to increase by mid-to-high single digits Advisor y - Anticipate mid-teens SOP growth with expected margin improvement - Expect mid-teens SOP growth, including expected partial year contribution from J&J acquisition - Maj
Slide 12: Appendix
Appendix
Slide 13: Revenue
Q4 2023 EARNINGS CONFERENCE CALL Revenue $in millions, totals may not sum due to rounding ® Advisory © Global Workplace Solutions (GWS) @ Real Estate Investments (REI) +9.2% vs. Q4’22 (+7.7% LC) $76 Soa i _ ss ($111) Q4'22 Sales Leasing Rest of Adv. Definitions and reconciliations are provided at th
Slide 14: Core EBITDA
Q4 2023 EARNINGS CONFERENCE CALL Core EBITDA $in millions, totals may not sum due to rounding ® Advisory © Global Workplace Solutions (GWS) @ Real Estate Investments (REI) $51 ($17) $33 ($5) +10.4 % vs. Q4’22 (+9.8% LC) Q4'22 Advisory OMSRs GWS REI Corporate Ex OMSRs Overhead Definitions and reconci
Slide 15: 2023 Revenue
Q4 2023 EARNINGS CONFERENCE CALL 2023 Revenue $in millions, totals may not sum due to rounding Global o Property Loan n Property Investment oO Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total Revenue 2023 $3,503 $1,610 $424 $317 S716 $1,928 $22,515 $360 $591 $3
Slide 16: Q4'23 Revenue
Q4 2023 EARNINGS CONFERENCE CALL Q4’23 Revenue $in millions, totals may not sum due to rounding Global o Property Loan n Property Investment oO Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total Solutions Revenue Q4'23 $1,153 $475 $156 $80 $208 $518 $6,103 $106 $
Slide 17: Non-GAAP Measures and Definitions
Non-GAAP Measures and Definitions
Slide 18: Non-GAAP Financial Measures
Q4 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 19: Definitions
Q4 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 20: Supplemental Slides, GAAP Reconciliation Tables
Supplemental Slides, GAAP Reconciliation Tables
Slide 21: Debt, Leverage and Liquidity
Q4 2023 EARNINGS CONFERENCE CALL Debt, Leverage and Liquidity $in millions, totals may not sum due to rounding CBRE Capital Structure as of December 31, 2023 Maturity Profile as of December 31, 2023 Revolving Credit Facility - Current portion LTD ce) Senior Term Loans, net 743 4.875% Senior Notes, d
Slide 22: 2022 Revenue
Q4 2023 EARNINGS CONFERENCE CALL 2022 Revenue $in millions, totals may not sum due to rounding Property Loan Property iclobal Investment Leasing Sales CMO Servicing Valuation Management Workplace Development Management Total® Solutions Revenue 2022 $3,872 $2,523 $563 $3 $764 $1,850 $19,851 $515 $595
Slide 23: Q4'22 Revenue
Q4 2023 EARNINGS CONFERENCE CALL Q4’22 Revenue $in millions, totals may not sum due to rounding Leasin: BrOperty CMO Eoan Valuation LORE, Workplace Development _,/nvestment Total 9 Sales Servicing Management Seine P Management GH Revenue Q4'22 $1,140 $587 $127 $75 $210 $475 $5,294 $151 $140 $8,194 L
Slide 24: Summarized Cash Flow Activity
Q4 2023 EARNINGS CONFERENCE CALL Summarized Cash Flow Activity $in millions, totals may not sum due to rounding Year Ended December 31, 2023 2022 Net cash provided by operating activities 480 1,629 Net cash used in investing activities (681) (832) Net cash provided by (used in) financing activities
Slide 25: Other Financial Metrics
Q4 2023 EARNINGS CONFERENCE CALL Other Financial Metrics Totals may not sum due to rounding Three Months Ended, December 31, September June 30, March 31, December 31, (in millions) 2023 30, 2023 2023 2023 2022 OMSR Gains $23.7 $22.2 $211 $167 $28.7 Amortization ($35.0) ($35.4) ($37) ($36.6) ($38.5)
Slide 26: Reconciliation of Net Income to Core Adjusted Net Income and Core EPS
Q4 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 December 31, Year Ended December 31, 2023 2022 2023 2022 Net income attributable to CB
Slide 27: Reconciliation of Net Income to Core EBITDA
Q4 2023 EARNINGS CONFERENCE CALL Reconciliation of Net Income to Core EBITDA $ in millions, totals may not sum due to rounding Three Months Ended December 31, 2023 2022 Net income attributable to CBRE Group, Inc. $477 $81 Net income attributable to non-controlling interests 18 5 Net income 495 86 Ad
Slide 28: Reconciliation of Resilient and Transactional to Segment Operating Profit
Q4 2023 EARNINGS CONFERENCE CALL Reconciliation of Resilient and Transactional to Segment Operating Profit $in millions, totals may not sum due to rounding Year ended 2023 Segment Operating Profit Advisory Services 1,364 Global Workplace Solutions 1,006 Real Estate Investments 239 Total Reportable S
Slide 29: Reconciliation of Resilient and Transactional to Segment Operating Profit
Q4 2023 EARNINGS CONFERENCE CALL Reconciliation of Resilient and Transactional to Segment Operating Profit $in millions, totals may not sum due to rounding Reportable Segment Operating Profit 2011 % of Total 2023 % of Total Resilient 300 32% 1,564 60% Transactional 645 68% 1,045 40% Total $945 $2,60
Slide 30: 2023 Resilient and Transactional Revenue
Q4 2023 EARNINGS CONFERENCE CALL 2023 Resilient and Transactional Revenue $in millions, totals may not sum due to rounding Less pass-through costs Revenue associated with revenue REGIE Leasing 3,503 - 3,503 Property Sales 1,610 - 1,610 CMO 424 - 424 Development & Other REI 413 a 413 Transactional $5
Slide 31: Reconciliation of Revenue to Net Revenue
Q4 2023 EARNINGS CONFERENCE CALL Reconciliation of Revenue to Net Revenue $in millions, totals may not sum due to rounding Three Months Ended December 31, Year Ended, December 31 2023 2022 2023 2022 Revenue $8,950 $8,194 $31,949 $30,828 Less: Pass through costs also recognized as revenue 3,763 3,219
Slide 32: Reconciliation of Revenue to Net Revenue and Net Margin
Q4 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 December 31, Year Ended December 31, 2023 2022 2023 2022 Advisory Revenue $2,591 $2,613 $8,499 $9,883 Less: Pass through costs also recognized
Slide 33: Reconciliation of Revenue to Net Revenue and Net Margin
Q4 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 December 31, Year Ended December 31, 2023 2022 2023 2022 Global Workplace Solutions revenue $6,103 $5,294 $22,515 $19,851 Less: Pass through co
Slide 34: Reconciliation of Revenue to Net Revenue
Q4 2023 EARNINGS CONFERENCE CALL Reconciliation of Revenue to Net Revenue $in millions, totals may not sum due to rounding Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Global Workplace Solutions Facilities Management revenue $3,995 $3,908 $15,205 $15,201 Less: Pass thr
Slide 35: Reconciliation of Net Margin
————= Q4 2023 EARNINGS CONFERENCE CALL Reconciliation of Net Margin $in millions, totals may not sum due to rounding Three Months Ended December 31, 2023 2022 Year Ended December 31, 2023 2022 Real Estate Investments net revenue $262 $291 $952 $1,110 Real Estate Investments Segment Operating Profit
Slide 36: Reconciliation of Real Estate Investments Business Line Operating Profit
Q4 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 December 31, Year Ended December 31, 2023 2022 2023 2022 Investment Management Operating Profit 42
Slide 37: Reconciliation of Net Income to Core EBITDA
Q4 2023 EARNINGS CONFERENCE CALL Reconciliation of Net Income to Core EBITDA $in millions, totals may not sum due to rounding Year Ended December 31, 2023 2022 2021 2020 2019 Net income attributable to CBRE Group, Inc. $986 $1,407 $1,837 $752 $1,282 Net income attributable to non-controlling interes
Slide 38: Debt and Leverage
Q4 2023 EARNINGS CONFERENCE CALL Debt and Leverage $in millions, totals may not sum due to rounding Revolving Senior Senior Current Other Net debt |TTM Core] Net | "@rehoUse Norec payable Cash sity term loans notes oe debt 2 © [Total Debt/Less: Cash (net cash)| EBITDA |leverage ©} = on ea 2019 972 -