Cbre Group Inc · NYSE:CBRE
Cbre — Investor Day (March 2018)
113 slides from Cbre's investor day presentation, Mar 8, 2018
Slide 1: 2018 CBRE Investor Day
2018 cbre investor day Exhibit 99.1
Slide 2: Forward-Looking Statements
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, market share, business outlook, and financial performanc
Slide 3: We're Changing Our Ticker
We’re Changing Our Ticker CBRE will no longer trade as “CBG” Starting March 19th, CBRE is…
Slide 4: CBRE
CBRE
Slide 5: Agenda
Strategy overview Bob Sulentic – President & Chief Executive Officer Financial Overview Jim Groch – Chief Financial Officer Digital & Technology overview Chandra Dhandapani – Chief Digital & Technology Officer, CBRE Sandeep Davé – Chief Digital & Technology Officer, Global Workplace Solutions CBRE C
Slide 6: CBRE Strategy
2018 cbre investor day CBRE Strategy Bob Sulentic President & Chief Executive Officer
Slide 7: Financial Overview
2018 cbre investor day CBRE Financial overview Jim Groch Chief Financial Officer
Slide 8: CBRE is Positioned to Extend its Lead
CBRE is Positioned to Extend its Lead Industry-leading financial performance Growing into better balanced, more resilient, business Disciplined approach to capital allocation Differentiated capabilities to successfully deploy capital into acquisitions
Slide 9: High Quality Earnings Growth Materially Outpaced Market
Note: Leverage Ratio declined from 1.7x in 2012 to 0.8x in 20172 Source: FactSet, Company filings See slide 107 for footnotes Cumulative Adjusted EPS Growth – CBRE vs S&P 500 High Quality Earnings Growth Materially Outpaced Market Eight Consecutive Years of Double Digit Adjusted EPS Growth1
Slide 10: CBRE Has Increased Profit Margin While Improving Business Mix
CBRE Has Increased Profit Margin While Improving Business Mix Note: Profit margin defined as adjusted net income/fee revenue
Slide 11: Growing Into a Better Balanced and More Resilient Business
Growing Into a Better Balanced and More Resilient Business Contractual Revenues Today are Larger than the Entire Company in 2006 Total Fee Revenue4 $9,389 Total Fee Revenue4 $3,742 ($ in millions) See slide 107 for footnotes.
Slide 12: CBRE's Financial Flexibility Has Improved Dramatically
CBRE’s Financial Flexibility Has Improved Dramatically ($ in millions) ($ in millions) Note: As of December 31, 2006 and 2017, respectively. Liquidity is defined as cash and cash equivalents plus unused amounts under the revolving credit facility.
Slide 13: Capital Allocation – Maximizing Value Over the Long-Term
Guiding principles Risk Management CBRE must maintain sufficient liquidity, flexibility and an appropriate level of leverage to sustain its business through a severe recession Excess Capital Capital not required to manage risk should be deployed over time into the best available long-term risk-adjus
Slide 14: CBRE Leverage Guideposts
3.0x 0.0x 1.0x Leverage Ratio Recession Recovery Above Target Leverage (>2.0x): Prioritize debt reduction absent compelling early-cycle investments Avoid leverage in this range later in the business cycle Plateau Expansion CBRE Leverage Guideposts Build Liquidity when Capital is Abundant – Deploy wh
Slide 15: Returning Capital to Shareholders
Returning Capital to Shareholders M&A likely to represent best risk-adjusted use of capital over long-term Large, attractive, M&A opportunities arise irregularly All major acquisitions tested against returning capital to shareholders If leverage approaches zero, begin returning capital to shareholde
Slide 16: CBRE Has Invested for Success in M&A
CBRE Has Invested for Success in M&A CBRE Corporate Development is differentiated: Robust, high-level talent Reporting and compensation structures well aligned with shareholders Take pride in the deals we do and the deals that we don’t do Dedicated integration team Track-record speaks to CBRE’s diff
Slide 17: CBRE Pursues Wide Variety of M&A Opportunities
Transformation/ Consolidation Large scale M&A redefining CBRE’s competitive position In-fill Build depth and breadth in geography and/or lines of business Add Capabilities Bolster capabilities that drive differentiation Technology capabilities Consulting capabilities Specialty expertise CBRE Pursues
Slide 18: Market Leading Position in a Consolidating Industry
Market Leading Position in a Consolidating Industry CBRE Has Pursued and Won 5 of the 12 Mergers Noted Below (Did Not Bid on Other 7) Notes: Revenues of private companies are estimated; CBRE 2015 gross revenue includes four months of actual gross revenue from the acquired GWS business while under ou
Slide 19: M&A Activity – Adding Capabilities and Building Depth
Technology Enhancement Fill Strategic Business Gaps Enhance Global Business Lines M Floored Mainstream 2017 M&A Activity – Adding Capabilities and Building Depth Custom Spaces Over 120 Acquisitions Since 2002
Slide 20: CBRE is Positioned to Extend its Lead
CBRE is Positioned to Extend its Lead Leads a services industry with strong structural tailwinds Disciplined approach to capital allocation Grown into a better balanced and more resilient business Proven record of successfully acquiring and integrating
Slide 21: Digital & Technology
2018 cbre investor day Digital & Technology Chandra Dhandapani Chief Digital & Technology Officer
Slide 22: Transformation via New Digital Business Models and Changing Customer Preferences
Transformation via New Digital Business Models and Changing Customer Preferences Digital Transformation Has Impacted Multiple Industries AUTOMOTIVE MEDIA FINANCIAL SERVICES
Slide 23: Comprehensive Global Digital Strategy Exercise on Opportunities & Risks
We Have Conducted a Comprehensive Global Digital Strategy Exercise on Opportunities & Risks We believe digital opportunities significantly exceed disruption risk Breadth and depth of domain expertise, global collaboration Significant research on emerging trends, fact based approach Risk and opportun
Slide 24: Digital Trends Create Future Implications for Commercial Real Estate
Experience Services CRE Analytics Procurement / Vendor Aggregation Online Marketplaces Space as a Service Smart Buildings and Utilities (incl. IOT) We keep a close watch on where the VC community is placing bets globally Several Digital Trends Create Future Implications for the Commercial Real Estat
Slide 25: Blending Pragmatism with Forward Thinking Innovation
Blending Pragmatism with Forward Thinking Innovation Market Observations CBRE perspective Changing competitive landscape; emergence of new business models Changing client expectations, increased focus on user experiences Increasing customization and need for ‘on-demand’ services Changing technology
Slide 26: World Class Digital & Technology Talent
World Class Digital & Technology Talent @ CBRE, with Access to Global Talent Markets SANDEEP GWS Citi, Booz & Co. PORA UX & Design Verizon, Avaya LIONEL EMEA UBS, Bloomberg NIR A&T Compstak SOHIN Digital Strategy A.T. Kearney ANDY EMEA Oracle, Push Tech. CBRE Digital & Technology (D&T) Hub DAVE A&T
Slide 27: CBRE's Vantage Suite of Technologies Is a Great Foundation
TransAct Deal Flow Global Labor View Floored Plans Portfolio Optimizer Examples TOPS As a Baseline, CBRE’s Vantageâ Suite of Technologies is a Great Foundation to Build On
Slide 28: Superior Client Outcomes Through Our Data and Expertise
Example: Recent capital markets and property management touch points in L.A. Superior Client Outcomes Through our Data and Expertise in Markets Around the World
Slide 29: Blended Build, Buy and/or Partner Approach
BUILD To drive world-class, differentiating capability for our clients and our professionals BUY Where there is a narrow time window in the market, and where it would have taken longer to build Deal IQ PARTNER (e.g.) To achieve speed to market and stay ahead on technology M Floored Mainstream Blende
Slide 30: We Avoid the 'Next Shiny Object' Fascination
We Avoid the ‘Next Shiny Object’ Fascination
Slide 31: Great Talent and Design Thinking
Great Talent and Design Thinking – Delivering Superior Client Outcomes CBRE 360 3-DAY ‘PROTOTHON’ DESIGN thinking, two week sprints, constant user feedback PLACING DIGITALLY SAVVY TALENT ACROSS THE ORGANIZATION
Slide 32: Agility is Key to Our Success
ENTERPRISE DATA PLATFORM (EDP) Idea to reality in 9 months Powering client dashboards & connecting our technology suite Interactive client tool to determine space needs Platform built within 6 months Agility is Key to Our Success
Slide 33: Well-Positioned to Win
Against traditional competitors Against non-traditional competitors Digital strategy-led based on client needs Agile execution Technology strategy embedded in each line of business, connected globally Comparable in-house talent Capital to invest Superior services component Strong brand promise Well-
Slide 34: Technology Showcase
TECHNOLOGY SHOWCASE CBRE
Slide 35: Case Study: CBRE TransAct
Case Study CBRE TransAct A Salesforce platform based, comprehensive project management and tracking solution helps power operational efficiencies, better team collaboration and streamlined workflows across the entire transaction management process The Right Technology Can Make a Big Difference Even
Slide 36: Case Study: Floored
World class technical talent yields unmatched innovation in space visualization and planning Case Study Floored Plans Delivers a 2D and 3D visualization to create unlimited, real-time customized floorplans Case Study Floored BUILD Interactive, customized 3D “walkthrough” experience for new developme
Slide 37: Case Study: CBRE 360
Case Study CBRE 360 Client needs matched with the right technology expertise to deliver a great user experience A new, better approach to employee experience with elegant technology
Slide 38: CBRE Competitive Position
2018 cbre investor day CBRE competitive Position Mike Lafitte Global Group President
Slide 39: CBRE is the Global Leader in an Expanding Industry
Market Leadership #1 Leasing #1 Property Sales #1 Outsourcing #1 Appraisal & Valuation $103 billion AUM3 Scale and Diversity 5.5 billion square feet under management1 450+ offices worldwide2 Serves clients in over 100 countries2 Serves over 90% of the Fortune 100 Over 85,000 transactions in 2017 See
Slide 40: CBRE is Extending its Competitive Advantage
CBRE is extending its competitive advantage
Slide 41: CBRE is the Global Leader in an Expanding Industry
Market Observations Clients becoming larger and more global Clients consolidating vendors around market leaders Clients demanding better data, analytics and KPI’s Getting larger made taking market share easier CBRE RESPONSE FOCUSED INVESTMENTS Infill and strategic acquisitions Digital & Technology i
Slide 42: Client Care Bolstered Most Important Relationships
CLIENT SELECTION CLIENT SELECTION PROCESS Select clients based on long-term potential growth Desire to have a single point of contact relationship Who METRICS CLIENT SCORECARD Client Outcomes (Value Creation) Client Satisfaction (NPS) CBRE SCORECARD Growth Client Share What STANDARDS ACCOUNT MANAGEM
Slide 43: Client Size Has Grown as CBRE's Capabilities Expanded
Client Size Has Grown as CBRE’s Capabilities Expanded CBRE’s Number of Large Clients Has Increased Dramatically as Ability to Service these Clients Has Expanded $100 million or more $50 to $100 million $25 to $50 million 2012 2017 13 50 5 1 15 17 Figures in Gross Revenue
Slide 44: Broad Market Leadership Increases Client Value
Advisory & Transaction Capital Markets Facilities Management Project Management Property Management Valuation Client 1 ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ Client 2 ˜ ˜ ˜ ˜ ˜ ˜ ˜ Client 3 ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ Client 4 ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ Client 5 ˜ ˜ ˜ ˜ ˜ ˜ Client 6 ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ ˜ Client 7 ˜ ˜ ˜ ˜
Slide 45: Geographic Breadth Increases Client Value
Geographic Breadth Increases Client Value CBRE’s Largest Clients Usually Generate Substantial Revenue from Multiple Regions Global clients want a global solution The JV model has not worked Companies need to offer globally diversified CRE services “under one roof” More services in more locations giv
Slide 46: Largest Clients Growing in Importance and Diversity
Largest Clients Growing in Importance and Diversity Client Diversity Has Increased as CBRE Has Enhanced its Client Service Capabilities Large Clients Now Represent Larger Share of Total Revenue Industry Diversity of Top 50 Clients Has Increased Over Time Percentage of CBRE Total Revenue Figures in G
Slide 47: Largest Clients Driving Outsized Share of Growth
Largest Clients Driving Outsized Share of Growth 50 Largest Clients in 2012 Generated Substantial Revenue in 2017 Retained 96% of clients Increased revenue for over 2/3 of clients Revenue CAGR of 13% Occupier Outsourcing has led growth Capabilities added with GWS acquisition were recognized by legac
Slide 48: CBRE Generates Synergies Across Lines of Business
CBRE Generates Synergies across lines of business
Slide 49: Creating Value – An Entrepreneurial Carve-out
Fund Accounting and Administration Global Investment Administration Property Level Services Traditional Investment Management CBRE Global Investors Property Management Carve-out Creating Value – An Entrepreneurial Carve-out CBRE carved out Global Investment Administration (GIA) from CBRE Global Inve
Slide 50: Brokerage and Outsourcing Have Strong Integration
TRANSACTION SERVICES Tenant Rep, Acquisitions, Dispositions, Capital Markets LABOR ANALYTICS Ÿ LOCATION INCENTIVES Ÿ LOCATION ANALYTICS Ÿ DEBT & STRUCTURED FINANCE Ÿ CORPORATE CAPITAL MARKETS Ÿ WORKPLACE ADVISORY SERVICES NYC-LED ACCOUNT GWS ACCOUNT MANAGER Transaction Managers Lease Administrators
Slide 51: CBRE is Positioned to Extend its Lead in Brokerage
CBRE is positioned to Extend its lead in brokerage
Slide 52: CBRE Has Taken Share in Leasing and Property Sales
CBRE Has Taken Share in Leasing and Property Sales Sources: Global property sales is based on RCA (Real Capital Analytics), US average office rent is based on data from CBRE Econometric Advisors CBRE Americas Leasing Revenue Up 65% in 10 Years Against US Office Rents Up 7% Global Property Sales Shar
Slide 53: Cross Border Capability Increasing in Importance
Buyer Origin Key (total outbound capital USD) Asia $58.6 B Africa $3.3 B Europe $13.2 B Middle East $9.2 B North America $46.9 B Pacific $1.8 B South America $0.3 B Source: CBRE Research; All Figures In US $B, 2017. Includes entity-level transactions. Cross Border Capability Increasing in Importance
Slide 54: CBRE Attracts and Retains Top Talent in the Industry
CBRE Attracts and Retains Top Talent in the Industry 3-Year Summary: Hires and Losses from and to Competitors (U.S.) Boutique Competitors are Increasingly Less Competitive Note: Hires do not include hundreds of internal hires and hires from non-direct competitors 22% of producers lost to competitors
Slide 55: Producers Generate More Revenue at CBRE
Connected global scale Significant investments in technology Integrated platform (Capital Markets, Leasing, etc.) drives more inbound business Multifamily – DUS license with GSE’s Institutional client relationships Network between office locations results in increased referrals CBRE Differentiation
Slide 56: Success Results in Sustained Momentum
Success Results in Sustained Momentum CBRE is Able to Attract and Retain the Top Talent in the Industry CLIENT OUTCOMES Top talent, products and platform result in superior client outcomes TOP TALENT CBRE attracts and retains the top talent in the industry MARKET SHARE GROWTH Clients award CBRE more
Slide 57: Competitive Position Case Study
2018 cbre investor day competitive Position case study Whitley Collins Global President, Advisory & Transaction Services
Slide 58: Real Estate Situation
6 Buildings 480,000 SF Obsolete Space Lease (3) Own (3) Real estate situation
Slide 59: Business Situation
Outdated Culture Talent Challenges Constraints on Capital Pressure on Costs Business situation
Slide 60: Expertise Needed
Expertise Needed Lease Negotiation/Disposition Property Sale and/or Purchase Labor Analysis Incentives Analysis/Negotiation Build-to-Suits Construction & Move Management Transaction Structuring Office Space Strategy
Slide 61: Expertise Needed – Partner Selection Criteria
Expertise Needed – Partner Selection Criteria Lease Negotiation/Disposition Property Sale and/or Purchase Labor Analysis Incentives Analysis/Negotiation Build-to-Suits Construction & Move Management Transaction Structuring Office Space Strategy CBRE BOUTIQUE
Slide 62: Expertise Needed – Partner Selection Criteria
Expertise Needed – Partner Selection Criteria Lease Negotiation/Disposition Property Sale and/or Purchase Labor Analysis Incentives Analysis/Negotiation Build-to-Suits Construction & Move Management Transaction Structuring Office Space Strategy CBRE ✔️ ✔️ ✔️ ✔️ ✔️ ✔️ ✔️ ✔️ BOUTIQUE ✔️
Slide 63: Expertise Needed – Partner Selection Criteria
Expertise Needed – Partner Selection Criteria CBRE RESOURCE Advisory & Transactions Investment Sales Labor Analytics Group Location Incentives Group Development Services Project Management Corporate Capital Markets Workplace Strategies Lease Negotiation/Disposition Property Sale and/or Purchase Labo
Slide 64: CBRE Workplace Strategies
CBRE Workplace Strategies 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Slide 65: wREeT Rea
wREeT Rea
Slide 66: Slide 66
Slide 67: Slide 67
Slide 68: Occupier Activity Lifecycle
OCCUPIER ACTIVITY LIFECYCLE
Slide 69: Poised for Growth
Poised for Growth Existing Relationship 1. Single Assignment Potential Relationship 1. All Transactions 2. Project Management 3. Economic Incentives 4. Development 5. Capital Markets (Acquisitions/Dispositions) 6. Workplace Strategies 7. Occupancy Management 8. Facilities Management
Slide 70: Break
15 MINUTE BREAK CBRE
Slide 71: Investment Businesses
2018 cbre investor day Investment businesses T. Ritson Ferguson CEO, Real Estate Investment Businesses
Slide 72: Investment Businesses Extend CBRE's Advantage
Investment Businesses Extend CBRE’s Advantage CBRE Real Estate Services $1,496M Adj. EBITDA1 Leasing Property Sales Property Management Project Management Valuation Two premier investment businesses with over $100B of third-party capital CBRE Global Investors – Global Investment Manager with $103B o
Slide 73: CBRE Global Investors
CBRE Global Investors Global Real Assets – Performance Driven 45 year track record $103B assets under management (AUM)1 Global platform, 21 countries Leading provider of core/core+ strategies Strong regional value add fund strategies Expanded infrastructure capabilities AUM by Investment Type2 AUM b
Slide 74: Secular Growth Potential for Real Assets
Secular Growth Potential for Real Assets Real assets play key role in multi-asset portfolios Investors favor strategies with less risk Real estate and infrastructure are preferred alternative asset classes Source: NAIOP, Federal Reserve Board of Governors, The Conference Board, Pension & Investments
Slide 75: Solid AUM Growth in 2017
Solid AUM Growth in 2017 AUM grew to $103B despite active selling and securities business net outflows ($ in billions) ($12.3) FX impact since 2013 $86.6 $7.7 $17.5 $8.2 ($16.8) $103.2 $120 $110 $100 $90 $80 $70 $60 $50 $40 12/31/2016 Caledon Acquisition Inflows & Acquisitions Market Movements & FX
Slide 76: Capital Raising Momentum Continues
Capital Raising Momentum Continues By Strategy By Geography Excludes gross in-flows to securities business $9.9B Raised in 20171 CBRE Global Investors Capital Raising History Fund raising for global strategies is accelerating and differentiated Successful raises for value add funds in all 3 regions
Slide 77: Infrastructure – Large and Growing Opportunity
Infrastructure – Large and Growing Opportunity Size of Regional Infrastructure Opportunities Projected Over the Next 5 to 10 Years Source: InfraDeals database NORTH AMERICA $160B LATIN AMERICA $50B EUROPE $180B ASIA PACIFIC $10B MIDDLE EAST & AFRICA $10B Energy Utilities Renewables Transportation Te
Slide 78: Development Services Snapshot
Development Services Snapshot Trammell Crow Company has been Recognized as the leading U.S. Development Firm Equity Partners In Process by Product Types1 Projects in Process/Pipeline ($ in billions) Total Cost $6.8B 2 3 See slide 109 for footnotes
Slide 79: Strong Returns to our Equity Partners
Strong Returns to our Equity Partners REALIZED RESULTS IN CURRENT CYCLE1 Total Project Costs $2.70B Partner Equity Investment $1.03B CBRE Equity Co-Investment $83M Partner Net Realized IRR2 32% All completed speculative development projects with CBRE co-investment that have been fully monetized by 1
Slide 80: Development Services Illustration
Development Services Illustration1 OFFICE DEVELOPMENT illustration ($ in millions) Total Budget $100 Equity Investment $35 Co-investment (10%) $3.5 DEVELOPMENT REVENUE to CBRE Development Fees $1.8 Tenant Improvement Fees $0.3 Return on Co-investment2 $3.2 Developer Promoted Interest2 $13.7 Total Re
Slide 81: Synergies Between Investment Businesses
Synergies Between Investment Businesses King Mill Distribution Center – Atlanta, Georgia Four projects recently completed or in-process comprising 2.4M square feet and $221M in aggregate project cost Executing on goal of incorporating Trammell Crow Company developments into Global Investors investme
Slide 82: Note
Note This presentation is prepared for the benefit of CBRE Group, Inc. shareholders, and is solely for informational purposes in connection with evaluating the business, operations, and financial results of the Investment Management segment of CBRE Group. The views expressed represent the opinion of
Slide 83: Occupier Outsourcing
2018 cbre investor day Occupier outsourcing Bill Concannon Global Group President and CEO, Global Workplace Solutions
Slide 84: Agenda
Agenda What is GWS and the GWS business model? Why is there growing demand for GWS services? What is the competitive landscape for GWS?
Slide 85: What is GWS and the GWS Business Model?
What is gws and THE gws business model?
Slide 86: GWS Revenue is Balanced and Diversified
CONSULTING AND ANALYTICS GWS Revenue is Balanced and Diversified Typical 3-5 year contract terms 90%+ renewal rate on expiring contracts Many 20+ year clients in portfolio Growth in each phase of economic cycle Exploring software as a service Fees generally based on a percentage of capital project c
Slide 87: Understanding the GWS Scope of Work
Understanding the GWS Scope of Work Enterprise CEO CFO CPO CTO CHRO CAO Head of Real Estate Real Estate Transaction Managers Construction & Project Managers Facilities Managers & Building Technical Engineering Services CBRE Account Manager A B C D SCOPE OF SERVICES WE TARGET
Slide 88: GWS Manages Client Portfolios
SAMPLE GWS CLIENT HEADQUARTER DATA CENTERS MANUFACTURING PLANTS REGIONAL OFFICES RETAIL STORES GWS Manages Client Portfolios
Slide 89: GWS Clients Have Global Portfolios
GWS Clients Have Global Portfolios GLOBAL PORTFOLIO SAMPLE GWS CLIENT
Slide 90: GWS: 500+ Clients, 100+ Countries
GWS: 500+ Clients | 100+ Countries | 44K Employees | 28M Occupants Breadth of the GWS Managed Portfolio 500+ CLIENTS GLOBALLY
Slide 91: Why is There Growing Demand for GWS Services?
Why is there growing demand for gws services?
Slide 92: Why is There Growing Demand?
Why is There Growing Demand? Real Estate Transaction Managers Construction & Project Managers Facilities Managers & Building Technical Engineering Services CBRE Account Manager Optimized rental rates; improved speed to market, reduced portfolio footprint; compliance Budget certainty; expense reducti
Slide 93: Multiple Levers to Sustain Growth
Multiple Levers to Sustain Growth TERM Renew and extend term SERVICES Win/expand into new service lines GEOGRAPHY Win/expand into broader geography INDUSTRY Penetrate new and emerging markets ASSET TYPE Win/expand into new asset types
Slide 94: Strong Growth Opportunities via Contract Expansions
% Wallet Share ADVISORY & TRANSACTIONS PROJECT MANAGEMENT FACILITIES MANAGEMENT AMS EMEA APAC AMS EMEA APAC AMS EMEA APAC CLIENT A <50% P P P P P P CLIENT B <50% P P P P P P CLIENT C <75% P P P P P CLIENT D <75% P P P P P P CLIENT E <100% P P P P P P P P P CLIENT F <50% P P P P P P P P P CLIENT G <2
Slide 95: What is the Competitive Landscape for GWS?
What is the competitive landscape for GWS?
Slide 96: Significant Total Addressable Opportunity for Outsourcing Services
Significant Total Addressable Opportunity for Real Estate Outsourcing Services Estimated $140B+ Outsourcing Spend Available Market Size ($ in billions) Integrated Facilities Management Only includes corporations/ occupiers that outsource an integrated bundle of FM hard and soft services Project Mana
Slide 97: CRE Competitive Landscape
Enterprise CEO CFO CPO CTO CHRO CAO Head of Real Estate Real Estate Transaction Managers Construction & Project Managers Facilities Managers & Building Technical Engineering Services CBRE Account Manager CRE Competitive Landscape
Slide 98: CRE Competitive Landscape: Full Service Providers
Enterprise CEO CFO CPO CTO CHRO CAO Head of Real Estate Real Estate Transaction Managers Construction & Project Managers Facilities Managers & Building Technical Engineering Services CBRE Account Manager FULL SERVICE PROVIDERS CRE Competitive Landscape
Slide 99: CRE Competitive Landscape: Brokerage and Transaction Management
Enterprise CEO CFO CPO CTO CHRO CAO Head of Real Estate Real Estate Transaction Managers Construction & Project Managers Facilities Managers & Building Technical Engineering Services CBRE Account Manager PLAYERS IN BROKERAGE AND TRANSACTION MANAGEMENT CRE Competitive Landscape
Slide 100: CRE Competitive Landscape: Building Services
Enterprise CEO CFO CPO CTO CHRO CAO Head of Real Estate Real Estate Transaction Managers Construction & Project Managers Facilities Managers & Building Technical Engineering Services CBRE Account Manager Janitorial & Mechanical PLAYERS IN BUILDING SERVICES CRE Competitive Landscape
Slide 101: CRE Competitive Landscape: Project Management
Enterprise CEO CFO CPO CTO CHRO CAO Head of Real Estate Real Estate Transaction Managers Construction & Project Managers Facilities Managers & Building Technical Engineering Services CBRE Account Manager PLAYERS IN PROJECT MANAGEMENT CRE Competitive Landscape Janitorial & Mechanical
Slide 102: CRE Competitive Landscape: Real Estate Owners
Enterprise CEO CFO CPO CTO CHRO CAO Head of Real Estate Real Estate Transaction Managers Construction & Project Managers Facilities Managers & Building Technical Engineering Services CBRE Account Manager Space Options Janitorial & Mechanical REAL ESTATE OWNERS Private Investors, REITS, and co-workin
Slide 103: How is GWS Different from the Competition?
How is GWS Different from the Competition? Full Service, Integrated Solutions Global Platform Provides Scale and Leverage Deep Experience and Track Record Investments in Technology and Innovation
Slide 104: Q&A
2018 cbre investor day Q&A
Slide 105: Footnotes and GAAP Reconciliation Tables
Footnotes and gaap reconciliation tables
Slide 106: Non-GAAP Financial Measures
Non-GAAP Financial Measures The following measures are considered “non-GAAP financial measures” under SEC guidelines: fee revenue net income attributable to CBRE Group, Inc., as adjusted (which we also refer to as “adjusted net income”) diluted income per share attributable to CBRE Group, Inc. share
Slide 107: Footnotes
Footnotes Slide 11 Other includes Development Services revenue (1% in both 2006 and 2017) and Other revenue (1% in both 2006 and 2017). Capital Markets includes Sales revenue (33% in 2006 and 19% in 2017) and Commercial Mortgage Brokerage (excluding Loan Servicing) revenue (4% in 2006 and 5% in 2017
Slide 108: Footnotes
Footnotes Slide 39 Property and corporate facilities under management as of December 31, 2017, includes square footage managed by affiliates. As of December 31, 2017, includes affiliates. Assets Under Management (AUM) as of December 31, 2017. Adjusted EBITDA excludes (from EBITDA) certain carried in
Slide 109: Footnotes
Footnotes Slide 78 In process as of December 31, 2017. In process figures include Long-Term Operating Assets (LTOA) of $0.2B for Q4 2017, $0.2B for Q4 2016, $0.1B for Q4 2015, $0.3B for Q4 2014 and $0.9B for Q4 2013. LTOA are projects that have achieved a stabilized level of occupancy or have been h
Slide 110: Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS
Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings per Share Twelve Months Ended December 31, ($ in millions, except per share amounts) 2017 2016 2015 2014 20132 20122 Net income attributable to CBRE Group, Inc. $ 691.5 $ 572.0 $ 547.1 $ 484.5 $ 316.5 $ 315.6 Amortization expe
Slide 111: Debt & Leverage
Twelve Months Ended December 31, ($ in millions) 2017 2012 Cash1 $ 682 $ 995 Revolving credit facility - 73 Senior term loans2 193 1,628 Senior notes2 1,806 791 Other debt3,4 - 23 Total debt $ 1,999 $ 2,515 Total net debt5 $ 1,371 $ 1,520 TTM Adjusted EBITDA6 $ 1,710 $ 918 Net debt to TTM Adjusted E
Slide 112: Reconciliation of Adjusted EBITDA to EBITDA to Net Income
Reconciliation of Adjusted EBITDA to EBITDA to Net Income Carried-interest incentive compensation expense is related to funds that began recording carried interest expense in Q2 2013 and beyond. Includes discontinued operations. Twelve Months Ended December 31, ($ in millions) 2017 20122 Adjusted EB
Slide 113: Reconciliation of Revenue to Fee Revenue
Twelve Months Ended December 31, ($ in millions) 2017 20161 2015 2014 20132 20122 2006 Consolidated revenue $ 14.209.6 $ 13,071.6 $ 10,855.8 $ 9,049.9 $ 7,194.2 $ 6,519.8 $ 4,032.0 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor