Slide 1: 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 expectatio
Slide 2: The global market leader
the global market leader CBRE is the premier global provider of integrated services to commercial real estate investors and occupiers GLOBAL LEADERSHIP WITH BROAD CAPABILITIES #1 Leasing #1 Property Sales #1 Outsourcing #1 Appraisal & Valuation $89.7 billion AUM Investment Management1 SCALE AND DIVE
Slide 3: The leading global brand
The Leading global brand CBRE is recognized as the foremost commercial real estate authority Fortune 500 company since 2008; ranked #259 in 2016 Ranked #1 brand for 15 consecutive years Global Real Estate Advisor of the Year four years in a row Ranked among the Most Admired Companies for four consec
Slide 4: CBRE serves investors and occupiers
CBRE Serves investors and occupiers CBRE’s integrated, best-in-class offering creates value for clients at every stage of the life cycle
Slide 5: Track record of long-term growth
Revenue up 39% Adjusted EPS2 up 13% (25% excluding currency hedges)3 From Q1 2015 to Q1 2016: Track record of long-term growth From 2003 to TTM Q1 2016: 16% Revenue CAGR 18% Normalized EBITDA1 CAGR See slide 30 for footnotes
Slide 6: Positioned for long-term growth
Positioned for long-term growth Consolidation Leasing and capital markets services continue to consolidate but remain highly fragmented Outsourcing Recurring contractual revenues Still in early stage of penetration with occupiers Contributes to largely recurring leasing revenues Strategic Position C
Slide 7: Key strategic priorities
Key strategic priorities Capitalize on our unique leadership position to widen our competitive advantages in the marketplace Continue to: Drive market share gains in our core leasing and capital markets businesses with leadership and innovation Enrich our operating platform (Technology & Data Enable
Slide 8: Mergers & acquisitions strategy
Mergers & acquisitions strategy Transactions generally fall into two categories: Strategic in-fill acquisitions sourced principally by lines of business Larger, transformational transactions driven by macro strategy On September 1, 2015, CBRE acquired Global Workplace Solutions from Johnson Controls
Slide 9: Fee revenue mix (FY 2006 versus TTM Q1 2016)
fee revenue Mix (FY 2006 versus TTM Q1 2016) Total Fee Revenue4: $3,742 Total Fee Revenue4: $8,091 4.0x Note – TTM Q1 2016 includes GWS acquired revenue starting September 1, 2015. See slide 30 for footnotes GWS acquisition solidifies a more stable, resilient long-term growth-oriented revenue and ea
Slide 10: Q1 2016 revenue
Q1 2016 REVENUE Contractual revenue & leasing, which is largely recurring1, is 74% of fee revenue Revenue ($ in millions) Contractual Revenue Sources Leasing Capital Markets Other Occupier Outsourcing2 Property Management2 Investment Management Valuation Leasing Sales Commercial Mortgage Services De
Slide 11: Key takeaways
Key takeaways CBRE: Leads an industry with strong underlying growth dynamics Is well positioned to continue its track record of long-term growth Has developed into a balanced business with a more stable growth profile Is an investment grade company with significant liquidity Is continuing to extend
Slide 12: Key takeaways
KEY TAKEAWAYS CBRE: core Leads an industry with strong underlying growth dynamics ls well positioned to continue its track record of long-term growth Has developed into a balanced business with a more stable growth profile Is an investment grade company with significant liquidity Is continuing to ex
Slide 13: Occupier Outsourcing
New 50 Expansions 42 Renewals 20 Historical revenue1 Full service offering Q1 2016 Total Contracts Facilities Management – approximately 2.3 billion square feet globally2 Project Management Transaction Services Strategic Consulting Ranked among the top few outsourcing service providers across all in
Slide 14: Property Management
Historical revenue1 overview Key strategic accounts ($ in millions) Manages buildings for investors Highly synergistic with property leasing Manages approximately 2.9 billion square feet globally2 300+ premier properties in major CBDs (approximately 450 million square feet) Property management Optim
Slide 15: Investment Management
CAPITAL RAISED1 Assets under Management (AUM) $89.7B as of 3/31/2016 overview ($ in billions) INVESTMENT MANAGEMENT Performance Across Risk/Return Spectrum Globally YTD Q1 See slide 31 for footnotes Performance-driven global real estate investment manager More than 500 institutional clients Equity t
Slide 16: Appraisal & Valuation
Premier clients ($ in millions) 147,000+ assignments in 2015 Euromoney Global Valuation Advisor of the Year for four consecutive years Clients include lenders, life insurance companies, special servicers and REITs overview Appraisal & Valuation Serving Clients Globally Historical revenue YTD Q1 $385
Slide 17: Leasing: Strategic Advisory and Execution
overview U.S. Leasing volume Advise occupiers and investors in formulating and executing leasing strategies Tailored service delivery by property type and industry/market specialization Strategic insight and high-level execution driving significant market share gains #1 global market position – $104
Slide 18: Leasing: Largely Recurring Business With Increasing Market Share
LEASING Largely Recurring Business With Increasing Market Share U.S. Leasing transactions 12% 71% 15% 2% Asset Class $76.4B 2015 Transaction Value Retail Office Industrial Other
Slide 19: Property Sales: Insight and Execution Across Markets
INCREASED institutional OWNERSHIP DRIVES SALES VELOCITY Strategic advisor (sellers and buyers) in commercial real estate #1 global market share, based on Real Capital Analytics 780 basis point advantage over #2 firm for full year 2015 #1 global market position – $206.2 billion sales volume in 2015 O
Slide 20: Property Sales: Highly Diverse Business
Property Sales Highly Diverse Business Across Transaction Size and Asset Class U.S. sales transactions
Slide 21: Commercial Mortgage Services
United States United States United States Laurus Oasis at Waipahu GE Capital $85.6 Million $80.5 Million $2.3 Billion Acquisition Financing Acquisition Financing Loan Sale Recent transactions Leading strategic advisor for debt and structured finance solutions Highly synergistic with property sales K
Slide 22: Development Services: Trammell Crow Company
Park District The Boardwalk McMillan The Brickyard Dallas, TX Mixed-Use Newport Beach, CA Office Washington, DC Healthcare Los Angeles, CA Industrial 2 Projects in process/pipeline1 overview Recent projects Premier brand in U.S. development 65+ year record of excellence Partner with leading institut
Slide 23: Development Services (duplicate)
DEVELOPMENT SERVICES Trammell Crow Company - Premier Brand in U.S. PROJECTS IN PROCESS/PIPELINE* OVERVIEW (Sin blons) - - J , , _* Premier brand in U.S. development tn Process? = Pipeline’ + 65+ year record of excellence Partner with leading institutional capital sources a rm . $127.7 million of co-
Slide 24: Non-GAAP financial measures
Non-Gaap financial measures The following measures are considered “non-GAAP financial measures” under SEC guidelines: (i) Fee revenue (ii) Net income attributable to CBRE Group, Inc., as adjusted (which we also refer to as “adjusted net income”) (iii) Diluted income per share attributable to CBRE Gr
Slide 25: Reconciliation of Normalized EBITDA to Net Income
Twelve Months Ended ($ in millions) March 31, 2016 December 31, 2003 Normalized EBITDA $ 1,448.7 $ 183.2 Adjustments: Integration and other costs related to acquisitions 62.9 13.6 Cost containment expenses 52.8 36.8 Carried interest incentive compensation expense1 29.4 - EBITDA 1,303.6 132.8 Add: In
Slide 26: Reconciliation of Net Income to Adjusted Net Income and EPS
Reconciliation of Net Income to adjusted Net Income and adjusted earnings per share Three Months Ended March 31, ($ in millions, except per share amounts) 2016 2015 Net income attributable to CBRE Group, Inc. $ 82.2 $ 92.9 Amortization expense related to certain intangible assets attributable to acq
Slide 27: Reconciliation of gross revenue to fee revenue
Reconciliation of gross revenue to fee revenue Twelve Months Ended ($ in millions) March 31, 2016 December 31, 2006 Consolidated revenue $ 11,650.0 $ 4,032.0 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work performed for cli
Slide 28: Reconciliation of gross revenue to fee revenue
Reconciliation of gross revenue to fee revenue Occupier Outsourcing and Property Management revenue excludes associated leasing and sales revenue, most of which is contractual. Three Months Ended March 31, ($ in millions) 2016 2015 Occupier Outsourcing revenue 1 $ 1,413.3 $ 694.9 Less: Client reimbu
Slide 29: Footnotes
Footnotes Slide 9 The base purchase price was $1.475 billion in cash plus net adjustments for working capital and other items. Such net adjustments took into account approximately $45 million in cash acquired by CBRE in the acquisition. The purchase price has been subject to post-closing adjustments
Slide 30: Footnotes
Footnotes Slide 16 Excludes global securities business. As of March 31, 2016. Slide 23 As of December 31 for each year presented. In Process figures include Long-Term Operating Assets (LTOA) of $0.1 billion for Q1 2016, $0.1 billion for Q4 2015, $0.3 billion for Q4 2014, $0.9 billion for Q4 2013 and
Slide 31: Footnotes
FOOTNOTES Side 4 1. Historical rvenue for Occupir Outsourcing line of busines (omy Global Crprate Sericas or GCS, now cad Global Workplace Scutons)exchdes associated soles and leasing revenue, mest of whch is cervactial 2. AS of Docomber 31,2085. 5. 2015 revenue incdes four months of contibuon from