Cbre Group Inc · NYSE:CBRE

Cbre — Investor Presentation (March 2023)

32 slides from Cbre's investor presentation, March 2023

  1. Slide 1: CBRE Investor Overview

    CBRE Investor Overview March 2023

  2. 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. These statements involve risks and uncertainties that may cause actual results and trends to differ materially from

  3. Slide 3: CBRE is the Global Leader in a Growing Industry

    INVESTOR OVERVIEW CBRE is the Global Leader in a Growing Industry +100 ~500 Countries Where Offices Globally Clients are Served $30.8B 117 Years 2022 Revenue Continuous operations C R E S E RV I C E S M A R K E T C A P MARKET LEADERSHIP LEADING GLOBAL BRAND AS OF DECEMBER 31, 2022 • #1 Leasing • Lip

  4. 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 REI $518 CBRE works in every dimension of commercial real estate and is the global leader in our industry. GWS We engage with our global clients through three business se

  5. Slide 5: CBRE Drivers of Long-Term Growth

    INVESTOR OVERVIEW CBRE Drivers of Long-Term Growth Tailwinds for • Increasing institutional ownership of CRE driving demand for institutional quality CRE services CRE Services • Occupier demand for CRE outsourcing services remains robust Sector • Clients coalescing around market leaders, with CBRE b

  6. Slide 6: Structural Tailwinds for Commercial Real Estate Services Sector

    INVESTOR OVERVIEW Structural Tailwinds for Commercial Real Estate Services Sector Institutional Real Estate Shift to Outsourcing Industry Leaders Taking Market Share Ownership Rising Estimated Integrated Facilities Mgt. % Institutional C B R E G l o b a l P r o p e r t y S a l e s S h a r e (4) M k

  7. 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 50 Larger Share of Total Revenue Clients has Improved Over Time 50.0% Real Estate Government 40.0% Energy/Industrial/Materials 30.0% IT/Telecom 20.0% Health Care

  8. Slide 8: Geographic Breadth Allows CBRE to Better Serve Large Global Clients

    INVESTOR OVERVIEW Geographic Breadth Allows CBRE to Better Serve Large Global Clients # of Countries in which CBRE’s 10 Largest Clients Generate Substantial Revenue from CBRE serves clients Multiple Regions Americas APAC EMEA >100 Client 1 ●●● ●●● ●●● Client 2 ●●● 60 Client 3 ●●● ●● ● +1.7x Client 4

  9. Slide 9: Market-Leading Scale Enables Significant Cross-Selling

    INVESTOR OVERVIEW Market-Leading Scale Enables Significant Cross-Selling 2022 Services Revenue Characteristics Among Our 10 Largest Clients (5) Client Rank Client Industry Leasing Capital Markets Facilities Mgmt. Project Mgmt. Other Client 1 Financials ●●● ●● ●●● ●●● ● ~80% of top 100 clients purcha

  10. 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 (6) Development Line of Business Operating Profit (7) $ Billions $ Millions $18.5 $16.9 $351 $333 $14.9 $13.0 $9.0 $187 $6.7 $6.8 $153 $6.6 $120 $121 $5.4 $114 $90 $72 2014 2015 2016 2017 2018 201

  11. Slide 11: Capital Allocation

    INVESTOR OVERVIEW Capital Allocation Historical Capital Allocation, $ billions Capital Allocation Capital Allocation 2019 – Present ⎻ Expect CBRE to invest more aggressively utilizing free ■ Share Repurchases $2.4 cash flow and balance sheet during periods of market weakness ■ Strategic M&A $1.5 ■ I

  12. Slide 12: CBRE's Business Mix is Increasingly Resilient to Economic Cycles

    INVESTOR OVERVIEW CBRE’s Business Mix is Increasingly Resilient to Economic Cycles Trailing Twelve-Month Net Revenue Portion of Segment Operating Profit from Contributions as of 2022 (9) Highly Resilient Business Lines (10) $ Millions Asset Mgmt. Fees, $536 Valuation, $764 45% Property Management, $

  13. Slide 13: CBRE's Property Exposure is Increasingly Diversified

    INVESTOR OVERVIEW CBRE’s Property Exposure is Increasingly Diversified (11) Office Retail Industrial Multi-Housing Other 2012 2022 2012 2022 2012 2022 2012 2022 2012 2022 U.S. Leasing 72% 59% 10% 8% 16% 29% n/a n/a 2% 3% U.S. Sales 33% 16% 13% 11% 16% 27% 30% 30% 8% 17% Development 43% 22% 3% 1% 15%

  14. Slide 14: Advisory Segment Lines of Business Resilient Through the Cycle

    INVESTOR OVERVIEW Advisory Segment Lines of Business Resilient Through the Cycle 100.0% Trailing-Twelve Month Revenue Growth 80.0% 60.0% 40.0% 20.0% 0.0% (20.0%) (40.0%) (12) Property Valuation Loan Servicing Advisory Leasing Advisory Sales Commerical S&P 500 Management Mortgage TTM 1Q'21 TTM 1Q'22

  15. Slide 15: CBRE vs. S&P 500 – Earnings per Share Growth is over 3x the S&P

    INVESTOR OVERVIEW CBRE vs. S&P 500 – Earnings per Share Growth is over 3x the S&P 500 TTM Core EPS (13) since 12/31/2011 600% 500% CBRE: +494% 400% 300% 200% S&P 500: +115% 100% 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2023 CBRE, Inc. | 15 Definitions, endnotes and reconciliations a

  16. Slide 16: Corporate Responsibility

    Corporate Responsibility

  17. Slide 17: Sustainability and Social Responsibility

    INVESTOR OVERVIEW Sustainability and Social Responsibility As of 12/31/21 $3.2B $20.2M Net Zero Spent with small & diverse Charitable Giving By 2040 commitment suppliers (incl. employee donations) ENERGY STAR $2B Green Financing bonds / notes issued (CBRE IM) 5,941 registered buildings (346.9 millio

  18. 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 0-4 Years 5 36% 27% 91% 5-8 Years 4 Diverse Women Independent 8+ Years 2 2022 NEO “At Risk” Performance-Based Compensation 89% Variable 11% 18% 41% 30% Base Salary Annual

  19. Slide 19: Non-GAAP Measures and Definitions

    Non-GAAP Measures and Definitions

  20. Slide 20: Non-GAAP Financial Measures

    INVESTOR OVERVIEW Non-GAAP Financial The following measures are considered “non-GAAP financial measures” under SEC guidelines: Measures i. ii. iii. Net revenue Core EBITDA Business line operating profit/loss iv. Segment operating profit on revenue and net revenue margins v. Net debt vi. Core adjuste

  21. 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

  22. Slide 22: End Notes, Supplemental Slides, GAAP Reconciliation Tables

    End Notes, Supplemental Slides, GAAP Reconciliation Tables

  23. Slide 23: End Notes

    INVESTOR OVERVIEW End Notes 1) Peers include JLL, Cushman & Wakefield, Colliers, Newmark, Walker & Dunlop, Marcus & Millichap and Savills 2) Source: McKinsey’s “Six Emerging Trends in Facilities Management Sourcing,” Frost & Sullivan’s “Future of Facility Management” reports and CBRE research 3) Sou

  24. 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 December 31, 2022 Liquidity (1) (2) Maturity Schedule – Robust liquidity at approximately $4.8 billion, – No significant maturities until December 2023 (3) enabling net leverage o

  25. Slide 25: Debt and Leverage

    INVESTOR OVERVIEW Debt and Leverage $ in millions, totals may not sum due to rounding Revolving Senior Current Non-Recourse Warehouse Senior Other Net debt TTM Core Net Notes Payable Cash Credit term loans Portion Total Debt Less: Cash (4) Lines of (1) notes (1) debt (2) (3) (net cash) EBITDA levera

  26. Slide 26: Reconciliation of Cash Flows

    INVESTOR OVERVIEW Reconciliation of Cash Flows $ in millions, totals may not sum due to rounding Twelve Months Ended December 31, 2022 2021 2020 2019 2018 2017 Net cash provided by operating $1,629 $2,364 $1,831 $1,223 $1,131 $894 activities Less: Capital Expenditures 260 210 267 294 228 178 Free Ca

  27. Slide 27: Reconciliation of Real Estate Investments Business Line Operating Profit to Segment 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

  28. 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 2016 2015 2014 2013 2012 2011 Net Income attributable to CBRE Group, Inc $1,407 $1,837 $752 $1,282 $1,063 $697 $573 $547 $485 $317 $316 $239

  29. Slide 29: Highly Resilient Business Lines

    INVESTOR OVERVIEW Highly Resilient Business Lines (10) $ in millions, totals may not sum due to rounding Segment Operating Profit 2011 % of Total 2022 % of Total Highly Resilient 300 32% 1,500 45% Transactional 645 68% 1,830 55% Total 945 3,330 2023 CBRE, Inc. | 29 Definitions, endnotes and reconcil

  30. Slide 30: TTM Q4'22 Revenue

    INVESTOR OVERVIEW TTM Q4’22 Revenue $ in millions, totals may not sum due to rounding Property Loan Property Facilities Project Investment Leasing Sales CMO Servicing Valuation Management Management Management Development Management Total (1) Revenue TTM Q4’22 $3,872 $2,523 $563 $311 $764 $1,850 $15

  31. 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 Twelve Months Ended, December 31, 2022 2021 2020 2019 2018 2017 2011 Net Income attributable to CBRE Group, Inc $1,407 $1,837 $752 $1,282 $1,063 $697 $239 Net income attributable t

  32. Slide 32: 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, Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2022 2022 2022 2022 2021 2021 2021 2021 2020 2020 2020 2020 2019 2019 2019 2019 Net Income attributabl

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