Colliers International Group Inc. · TSX:CIGI
Colliers International — Q1 2023 Earnings Presentation
18 slides from Colliers International's earnings presentation, May 2, 2023
Slide 1: First Quarter 2023 Financial Results
1 First Quarter 2023 Financial Results May 2, 2023
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Colliers 2 Forward-Looking Statements This presentation includes or may include forward-looking statements. Forward-looking statements include the Company’s financial performance outlook and statements regarding goals, beliefs, strategies, objectives, plans or current expectations. These statements
Slide 3: Highlights
Colliers 3 Highlights Growth in high value recurring revenues improves balance and resilience (US$ millions, except per share amounts) Robust growth in Investment Management and Outsourcing & Advisory; Leasing up slightly Three months ended %Change 2023 2022 March 31 USD LC (1) As expected, Capital
Slide 4: Broad Diversification
Colliers 4 Broad Diversification Trailing twelve months ended March 31, 2023 TTM Q1 2023 Revenue by Service TTM Q1 2023 AEBITDA by Service 25% 31% 43% 54% 62% 38% Recurring Recurring 21% 11% 31% Outsourcing & Advisory Leasing Leasing and Capital Markets Investment Management Capital Markets Please r
Slide 5: Consolidated Revenues
Colliers 5 Consolidated Revenues First Quarter (US$ millions) % Change over Q1 2022 USD LC 1,000.9 965.9 Investment Management (1) 40% 40% Investment Outsourcing & Advisory 10% 13% Management (1) 120.7 86.4 Leasing 0% 2% 414.5 Capital Markets -42% -41% Outsourcing & Advisory 454.9 Total -3% -1% Reve
Slide 6: Geographic Mix
Colliers 6 Geographic Mix First Quarter (US$ millions) Q1 2023 Revenues Q1 2022 Revenues Investment Investment Management 9% Management 12% 86.4 120.7 12% 13% Asia Pacific Asia Pacific 119.4 120.1 60% Americas EMEA 15% 64% Americas 581.6 153.3 EMEA 15% 641.7 143.4 Q1 2023 AEBITDA Q1 2022 AEBITDA Inv
Slide 7: Americas
Colliers 7 Americas First Quarter (US$ millions) Revenues AEBITDA Significant fall-off in Capital Markets transaction volumes across all asset classes relative to very strong prior year 641.7 quarter 581.6 260.9 Outsourcing & 280.3 Advisory Outsourcing & Advisory driven by growth in Engineering & De
Slide 8: EMEA
Colliers 8 EMEA First Quarter (US$ millions) Revenues AEBITDA Significant decline in Capital Markets, in line with overall market conditions 153.3 143.4 82.1 Foreign exchange headwinds impacted revenues by 4% Outsourcing & 99.4 Advisory 30.3 Adjusted EBITDA impacted by fixed costs in Capital Markets
Slide 9: APAC
Colliers 9 APAC First Quarter (US$ millions) Revenues AEBITDA Leasing and Outsourcing & Advisory revenue growth more than offset a decline in Capital Markets revenues 120.1 119.4 Outsourcing & Foreign exchange headwinds impacted revenues by 6% 75.0 71.3 Advisory 10.2 8.0 Adjusted EBITDA impacted by
Slide 10: Investment Management
Colliers 10 Investment Management First Quarter (US$ millions) Revenues AEBITDA Growth driven by (i) acquisitions and (ii) management fee growth 120.7 from increased assets under management year over year 0.0 86.4 $97.6 billion AUM as of March 31, 2023 Pass-through 24.7 • Down <1% versus December 31
Slide 11: Investment Management: Focus on long-duration, highly differentiated AUM
Colliers 11 Investment Management Focus on long-duration, highly differentiated AUM AUM: $97.6B FPAUM: $52.1B AUM by Asset Class AUM by Strategy AUM by Geography 50% 37% 78% 19% 22% 49% 14% 31% Alternatives Infrastructure Traditional Real Estate Perpetual Capital Long-dated Funds Managed Accounts No
Slide 12: Capitalization & Capital Allocation
Colliers 12 Capitalization & Capital Allocation (US$ millions) March 31, 2023 December 31, 2022 March 31, 2022 Highlights Cash $ 178.7 $ 173.7 $ 230.4 • Leverage ratio of 2.2x Total Debt 1,618.2 1,439.1 714.3 Net Debt $ 1,439.5 $ 1,265.4 $ 483.9 • Announced early redemption of 4% convertible notes;
Slide 13: 2023 Outlook
Colliers 13 2023 Outlook (US$ millions) • Greater level of uncertainty now compared to 90 days ago • Lower volumes in Capital Markets to persist for the remainder of the year • Revenue expected to be down 30-40% in Q2, with year-over-year comparisons becoming more favourable in Q3 and Q4 • Robust gr
Slide 14: Appendix
Appendix Reconciliation of non-GAAP measures
Slide 15: Reconciliation of GAAP earnings to adjusted EBITDA
Colliers 15 Reconciliation of GAAP earnings to adjusted EBITDA Three months ended (US$ thousands) March 31, 2023 March 31, 2022 Net earnings (loss) $ (907) $ 21,317 Income tax 3,539 16,327 Other income, including equity earnings from non-consolidated investments (3,320) (3,128) Interest expense, net
Slide 16: Reconciliation of GAAP earnings to adjusted net earnings and adjusted EPS
Colliers 16 Reconciliation of GAAP earnings to adjusted net earnings and adjusted earnings per share Three months ended (US$ thousands) March 31, 2023 March 31, 2022 Net earnings (loss) $ (907) $ 21,317 Non-controlling interest share of earnings (10,941) (8,516) Interest on Convertible Notes 2,300 2
Slide 17: Reconciliation of net cash flow from operations to free cash flow
Colliers 17 Reconciliation of net cash flow from operations to free cash flow Three months ended (US$ thousands) March 31, 2023 March 31, 2022 Net cash used in operating activities $ (132,568) $ (280,709) Contingent acquisition consideration paid 272 59,553 Purchase of fixed assets (18,883) (9,835)
Slide 18: Other Non-GAAP Measures
Colliers 18 Other Non-GAAP Measures Local currency revenue and AEBITDA growth rate Fee paying assets under management and internal revenue growth rate measures We use the term fee paying assets under management (“FPAUM”) to represent only the Percentage revenue and AEBITDA variances presented on a l
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