Cbre Group Inc · NYSE:CBRE
Cbre — Investor Presentation (June 2023)
31 slides from Cbre's investor presentation, June 2023
Slide 1: CBRE Investor Overview
CBRE CBRE Investor Overview June 2023
Slide 2: Forward-Looking Statements
INVESTOR OVERVIEW Forward-Looking Statements This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding market trends. These statements involve risks and uncertainties that may cause actual
Slide 3: CBRE is the Global Leader in a Growing Industry
INVESTOR OVERVIEW CBRE is the Global Leader in a Growing Industry 7: Ae . +100 Countries Where Clients are Served ~500 Offices Globally 117 Years Continuous operations $30.8B 2022 Revenue CRE SERVICES MARKET CAP MARKET LEADERSHIP LEADING GLOBAL BRAND AS OF MARCH 31, 2023 * #1 Leasing * Lipsey’s #1 C
Slide 4: Serving Global Clients Through Three Business Segments
INVESTOR OVERVIEW Serving Global Clients Through Three Business Segments Full-year 2022, Segment Operating Profit | $ in millions CBRE works in every dimension of commercial real estate and is the global leader REI in our industry. $518 We engage with our global clients through three business segmen
Slide 5: CBRE Drivers of Long-Term Growth
INVESTOR OVERVIEW CBRE Drivers of Long-Term Growth Tailwinds for CRE Services Sector Increasing institutional ownership of CRE driving demand for institutional quality CRE services Occupier demand for CRE outsourcing services remains robust Clients coalescing around market leaders, with CBRE being t
Slide 6: Structural Tailwinds for Commercial Real Estate Services Sector
INVESTOR OVERVIEW Structural Tailwinds for Commercial Real Estate Services Sector Institutional Real Estate | Le T M hi Shift to Outsor nership Rising industry Leaders Taking ‘et Share Estimated Integrated Facilities Mgt. % Institutional CBRE Global Property Sales Share “ Mkt. Size Asset Allocation
Slide 7: Client Size and Diversity Have Increased with CBRE's Capabilities
INVESTOR OVERVIEW Client Size and Diversity Have Increased with CBRE’s Capabilities Large Clients Now Represent Industry Diversity of Top Larger Share of Total Revenue 50 Clients has Improved Over Time 50.0% Real Estate Government _— 40.0% Energy/Industrial/Materials — 30.0% ten 20.0% Health Care a
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Slide 10: Development Business is a Differentiated Driver of CBRE's Growth
INVESTOR OVERVIEW Development Business is a Differentiated Driver of CBRE’s Growth In-Process Portfolio © Development Line of Business Operating Profit” $ Billions $ Millions $18.5 $16.9 $381 $333 $14.9 $13.0 $9.0 $187 $67 $6.6 9 S68 rn $121 $5.4 $90 2014 2015 «2016 «2017-2018 «2019 2020«.2021:—«-20
Slide 11: CBRE's Capital Allocation Strategy
INVESTOR OVERVIEW CBRE’s Capital Allocation Strategy CBRE Capital Allocation ($ billions) 2019 to 10°23 ~ Due to strong free cash flow generation and a capital light business model, CBRE is able to allocate = M&A $2.9 capital to a variety of discretionary sources — Target leverage range of 0.0x to 2
Slide 12: CBRE's Business Mix is Increasingly Resilient to Economic Cycles
INVESTOR OVERVIEW CBRE’s Business Mix is Increasingly Resilient to Economic Cycles $in millions, totals may not sum due to rounding | Full Year 2022 Net Revenue Contributions Property Management, $1,777 Investment Management, $58 Project Management, $2,735 Property Sales, $2,523 Facilities Managemen
Slide 13: CBRE's Property Exposure is Increasingly Diversified
INVESTOR OVERVIEW CBRE’s Property Exposure is Increasingly Diversified Office Retail Industrial Multi-Housing Other 2012 2022 2012 2022 2012 2022 2012 2022 2012 2022 US. Leasing 72% 59% 10% 8% 16% 29% n/a nia 2% 3% 33% 16% 13% 1% 16% 27% 30% 30% 8% 1% Development 43% 22% 3% 1% 15% 29% 1% 26% 27% 22%
Slide 14: Advisory Segment Lines of Business Resilient Through the Cycle
INVESTOR OVERVIEW Advisory Segment Lines of Business Resilient Through the Cycle 100.0% £ eit = \ 2 80.0% ( I ° I o I 2 © 60.0% I b I fa l I S 40.0% : I io) ! I = 200% : I 3 U ! ! : U '_i 0.0% a — — [—_ : Da I = y = (20.0%) ! 1 : I l (40.0%) l Property Valuation Loan Servicing Advisory Leasing Advis
Slide 15: CBRE vs. S&P - Earnings per Share Growth is over 3x the S&P 500
INVESTOR OVERVIEW CBRE vs. S&P 500 - Earnings per Share Growth is over 3x the S&P 500 TTM Core EPS“ since 12/31/2011. 600% 500% mmm CBRE: +447% 400% 300% 200% 100% mmm S&P 500: +99% 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 CBRE, Inc. | 15 Definitions, endnotes and reconcil
Slide 16: Corporate Responsibility
Corporate Responsibility
Slide 17: Sustainability and Social Responsibility
CORPORATE RESPONSIBILITY Sustainability and Social Responsibility 2022 Ata Glance Scaling a Low Carbon Future S4.9B+ spent with sustainable suppliers 8,300+ buildings registered for energy performance globally $2.5B+ in green financing bonds/notes issued (CBREIM) Creating Opportunities so All People
Slide 18: High-Quality and Well-Aligned Corporate Governance
INVESTOR OVERVIEW High-Quality and Well-Aligned Corporate Governance Board Diversity Race & Ethnicity Gender Independence Tenure 36% 27% 91% «5-8 Vears Diverse Women Independent 8+ Years 2 2022 NEO “At Risk” Performance-Based Compensation ¢ 89% Variable >| n% 18% 41% 30% Annual Performance Core EPS
Slide 19: Non-GAAP Measures and Definitions
Non-GAAP Measures and Definitions
Slide 20: Non-GAAP Financial Measures
INVESTOR OVERVIEW 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 Core net income
Slide 21: Definitions
INVESTOR OVERVIEW 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 certain carried in
Slide 22: End Notes, Supplemental Slides, GAAP Reconciliation Tables
End Notes, Supplemental Slides, GAAP Reconciliation Tables
Slide 23: End Notes
INVESTOR OVERVIEW End Notes >) 2) 3) 4) 5) 6) 7) 8) 9) Peers include JLL, Cushman & Wakefield, Colliers, Newmark, Walker & Dunlop, Marcus & Millichap and Savills Source: McKinsey’s “Six Emerging Trends in Facilities Management Sourcing,” Frost & Sullivan’s “Future of Facility Management’ reports and
Slide 24: Mandatory Amortization and Maturity Schedule
INVESTOR OVERVIEW Mandatory Amortization and Maturity Schedule $in millions, totals may not sum due to rounding | As of March 31, 2022 5,000 4,000 3,000 Liquidity — Robust liquidity at approximately $3.7 billion, enabling net leverage of around 0.6x Revolving ., Credit Facility, $2,455 Cash $1,231 L
Slide 25: Debt and Leverage
INVESTOR OVERVIEW Debt and Leverage $in millions, totals may not sum due to rounding Cash ‘eeu ee Senior ponent Other Total Debt|Less: Cash Net debt | TTM Core Het “loco Note Paya Facility lO) notes i rpen debt (net cash} EBITDA |leverage™) Cregi¢m a Reel Q1 2019 $605 $336 $744 $1,016 - 3 $2,099 | $
Slide 26: Reconciliation of Cash Flows
INVESTOR OVERVIEW Reconciliation of Cash Flows $in millions, totals may not sum due to rounding Twelve Months Ended, March 31, December 31, 2023 2022 2021 2020 2019 2018 2017 Net cash provided by operating activities $1,278 $1,629 $2,364 $1,831 $1,223 $1,131 $894 Less: Capital Expenditures 278 260 2
Slide 27: Reconciliation of Real Estate Investments Business Line Operating Profit
INVESTOR OVERVIEW Reconciliation of Real Estate Investments Business Line Operating Profit to Segment Operating Profit $in millions, totals may not sum due to rounding Twelve Months Ended December 31, 2022 2021 2020 2019 2018 2017 2016 2015 2014 Investment Management Operating Profit $187 $206 $142
Slide 28: Reconciliation of Core EPS
INVESTOR OVERVIEW Reconciliation of Core EPS Twelve Months Ended, $ in millions, totals may not sum due to rounding December 31, 2022 2021 2020-2019: 2018_——2017_-—S=— 20162015 201420132012 201 Net Income attributable to CBRE Group, Inc $1407 $1837 $752 $1,282 $1063 $697 $573 $547 $485 $317, $316 =
Slide 29: Highly Resilient Business Lines
INVESTOR OVERVIEW Highly Resilient Business Lines © $in millions, totals may not sum due to rounding 2022 Segment Operating Profit Advisory Services 1,910 Global Workplace Solutions 899 Real Estate Investments 518 Total Reportable Segment (Business) Operating Profit $3,327 Operating Profit associate
Slide 30: TTM Q4'22 Revenue
INVESTOR OVERVIEW TTM Q4’22 Revenue $in millions, totals may not sum due to rounding Less pass-through costs Revenue associated with revenue Net Revenue Leasing $3,872 - 3,872 Property Sales $2,523 - 2,523 CMO $563 - 563 Development $515 - 515 Investment Management $58 - 58 Transactional $7,531 : 7,
Slide 31: Reconciliation of TTM Net Income to TTM Core EBITDA
INVESTOR OVERVIEW Reconciliation of TTM Net Income to TTM Core EBITDA $in millions, totals may not sum due to rounding Trailing Twelve Months Ended, Qi Qs Q3 Q2 Qi Qs Q3 Q2 Qi Q4 Q3 Q2 Qi Q4 Q3 Q2 Qi 2023 2022 2022 2022 2022, 2021 _2021_—~2021__—~-2021 ~~ 2020-2020 2020 2020 2019-2019 2019 __- 2019