Cbre Group Inc · NYSE:CBRE
Cbre — Investor Day (March 2019)
106 slides from Cbre's investor day presentation, Mar 7, 2019
Slide 1: 2019 CBRE Investor Day
2019 CBRE INVESTOR DAY Exhibit 99.2
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: Financial Review & Outlook
2019 CBRE INVESTOR DAY Jim Groch Chief Financial Officer Chief Investment Officer FINANCIAL REVIEW & OUTLOOK
Slide 4: Track Record – CBRE Earnings Growth vs. S&P
Track Record – CBRE Earnings Growth vs. S&P 500 Source: FactSet, Company filings See slide 104 for footnotes. Note: 2016 and 2017 adjusted EPS were restated for ASC 606. 2016 adjusted EPS did not change, and 2017 was restated by $0.02 per share or less than 1% of adjusted EPS. We have not made a sim
Slide 5: Business Mix Shifting to More Contractual
Business Mix Shifting to More Contractual $ in millions See slide 104 for footnotes. Note: 2016 and 2017 fee revenue figures were restated for ASC 606. We have not made a similar restatement for 2006, 2014 or 2015, and fee revenue figures for such periods continue to be reported under the accounting
Slide 6: Adjusted Net Income Margin
Adjusted Net Income Margin Note: Adjusted Net Income Margin defined as adjusted net income / fee revenue. Note: 2016 and 2017 adjusted net income margin figures were restated for ASC 606. We have not made a similar restatement for 2014 and 2015, and adjusted net income margin figures for such period
Slide 7: Three New Global Segments
THREE NEW GLOBAL SEGMENTS CBRE
Slide 8: 2018 Actuals Under Our Three New Segments
Capital Markets, Development & Carried Interest Leasing Contractual Sources 2018 Actuals Under Our Three New Segments ($ in millions) See slide 104 for footnotes. $7,199 Fee Revenue1 $1,267 Adj. EBITDA2 $535 Fee Revenue1 $852 Adj. Fee Revenue3 $256 Adj. EBITDA2 $3,104 Fee Revenue1 $381 Adj. EBITDA2
Slide 9: Outlook for 2019
OUTLOOK FOR 2019 CBRE
Slide 10: 2019 Outlook – Advisory Services
Up 8% - 10% 2019 Outlook – Advisory Services Capital Markets revenue up low-single digits Leasing revenue up high-single digits Gains on mortgage servicing rights (OMSRs) to decline modestly Up 6% – 8% $ in millions See slide 105 for footnotes.
Slide 11: 2019 Outlook – Global Workplace Solutions
Up 15% - 18% 2019 Outlook – Global Workplace Solutions Up 10% – 13% $ in millions Major client wins in 2018 drive outlook for strong revenue growth; global capabilities increasingly differentiated Expanding capabilities drive new growth with existing clients – FacilitySource as example Margin expans
Slide 12: 2019 Outlook – Real Estate Investments
2019 Outlook – Real Estate Investments Development – Adjusted EBITDA to be closer to 2017 Solid improvement in Adjusted EBITDA from Global Investment Management Hana – wide range of outcomes but likely a negative $15M - $30M impact to Adjusted EBITDA $ in millions See slide 105 for footnotes.
Slide 13: Adjusted EPS Guidance Waterfall
Adjusted EPS Guidance Waterfall Below-the-Line items include guidance assumptions for net interest expense, depreciation & amortization and tax rate presented on next slide.
Slide 14: 2019 Full Year Outlook Summary
2019 Full Year Outlook Summary Metrics 2018 Actual 2019 Guidance Adjusted EPS $3.28 $3.50 - $3.70 Advisory Fee Revenue $7,199M Up 6% - 8% Advisory Adj. EBITDA $1,267M Up 8% - 10% GWS Fee Revenue $3,104M Up 10% - 13% GWS Adj. EBITDA $381M Up 15% - 18% Capital Markets Revenue $2,514M Up low-single dig
Slide 15: CBRE Investment
CBRE INVESTMENT CBRE
Slide 16: Cycle Aware Investing: 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 Lower Leverage (<1.0x): Comfortable with lower leverage later in the business
Slide 17: Strong Balance Sheet and Capacity to Invest
Financial Performance Gives CBRE a Strong Balance Sheet and Capacity to Invest Ample Liquidity and Dry Powder Strong cash flow No debt maturities until 2024 Cash and credit facility capacity total $3.5B1 Net debt/Adj. EBITDA of 0.6x2 $9B+ of Adj. EBITDA Generated Since 2011 $ in millions See slide 1
Slide 18: Deploying Capital
Deploying Capital 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 A high volume of smaller M&A opportunities over time Returning capital to sharehol
Slide 19: M&A: Market Leading Position in a Consolidating Industry
M&A: CBRE Holds the Market Leading Position in a Consolidating Industry 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 our ownership, annualized for illustrative purposes; other publi
Slide 20: Investment in Real Estate
Investment in Real Estate #1 commercial real estate development business in the U.S. Top 5 global commercial real estate investment management business by AUM Hess Tower, Houston, TX Park District, Dallas, TX Vermont Corridor, Los Angeles, CA
Slide 21: Supplemental Disclosures
SUPPLEMENTAL DISCLOSURES CBRE
Slide 22: Summary of Changes to Supplemental Disclosures
Summary of Changes to Supplemental Disclosures CBRE will provide supplemental data with a regional view of services businesses. Changes to align our prior regional views with new global segments include: $267M of transaction revenue, primarily leasing to GWS client accounts, now captured within GWS
Slide 23: New Supplemental Disclosure
New Supplemental Disclosure Note: 2018 quarterly detail to be provided with Q1 2019 results 2018 Advisory & Global Workplace Solutions Americas EMEA APAC Total Regions Global Workplace Solutions $1,520.3871404786348 $1,314.2916767898853 $268.92004919699161 $3,103.5988664655115 Advisory Property & Pr
Slide 24: Digital & Technology Overview
2019 CBRE INVESTOR DAY Chandra Dhandapani Chief Digital & Technology Officer DIGITAL & TECHNOLOGY OVERVIEW
Slide 25: Top Talent: Digital & Technology Leadership at CBRE
Top Talent: Digital & Technology Leadership at CBRE Javed Roshan CDTO, Real Estate Investments Verizon, Capital One Sayee Bellamkonda CDTO, Advisory Services Ameriprise, American Express Sandeep Davé CDTO, GWS Citi, Booz Allen Umesh Patel CTO Ericsson, Bloomin’ Brands Dalia Soliman-Powers Head of En
Slide 26: Our Talent Brand
Our talent brand 100+ Agile, Product Development teams A new, recruiting-focused sub-brand for D&T’s agile software development teams With its youthful energy, Build gives CBRE a voice that speaks to the tech talent for which we’re competing
Slide 27: Our Industry is Going Digital Like Never Before
Our Industry is Going Digital Like Never Before Flexible Spaces Experience Services Smart Buildings (IOT) Online Listing Platforms and Brokerages Industry Trends Increasing Technology Investments Increasing Number of Startups New Competitors Increase in Venture Capital Competitor Trends Machine Lear
Slide 28: Our Strategy Has Led to Substantial Transformation
Our Strategy Has Led to Substantial Transformation at CBRE Over the Last 24 Months New Digital and Technology leadership and talent infusion Substantial upgrade of key products that help deliver client outcomes Company-wide migration to agile product development Product, capability and talent acqui
Slide 29: Committed to Solving Emerging Needs of Our Clients
We Are Committed to Solving Emerging Needs of Our Clients Experience ‘Platform as a Service’ for Occupiers and Investors Flexible spaces Tech-enabled aggregator
Slide 30: We Are Investing Significantly in Enabling Technologies
We Are Investing Significantly in Enabling Technologies For our clients For our professionals Success Measures: NPS Higher win rates
Slide 31: Experience 'Platform as a Service'
Experience ‘platform as a service’ (patent pending) 80+ active client opportunities with recurring annual SaaS revenue The Future is Software + Services PERSONALIZED HOME SCREEN ROOM BOOKING MAPPING & WAYFINDING
Slide 32: Data Center Management Platform
Data Center Management Platform Building connectivity Asset monitoring Analytics
Slide 33: We Have a Rich, Verified Property Dataset
We Have a Rich, Verified Property Dataset 1.3M+ lease comps 500+ attributes each per property Regions Sub-Markets Properties Plans
Slide 34: Our Transformation Continues
Our Transformation Continues Right team in place Globally connected and locally empowered Continued market scan and invest for the future Push new data frontiers
Slide 35: CBRE
CBRE Azure loT, Azure DigitalstWins
Slide 36: Real Estate Investments
2019 CBRE INVESTOR DAY Danny Queenan Global Chief Executive Officer, Real Estate Investments REAL ESTATE INVESTMENTS
Slide 37: Three Real Estate Investment Businesses with Over $100B of Third-Party Capital
Advisory & Transaction Capital Markets Project Management Property Management Valuation & Advisory Real Estate Investments Advisory & Transaction Capital Markets Project Management Property Management Valuation & Advisory CBRE Commercial Real Estate Services Three Real Estate Investment Businesses w
Slide 38: CBRE Reorganization – Real Estate Investments
CBRE Reorganization – Real Estate Investments Impact Talent. Strategically placed existing talent into more impactful roles Accountability. Created clear lines of authority and accountability Collaboration. Centralized reporting structure will drive increased collaboration between Real Estate Invest
Slide 39: CBRE Global Investors
CBRE Global Investors Global Real Asset Investment Manager Real asset solutions provided through real estate and infrastructure investment capabilities 46-year track record $105.5B assets under management (AUM)1 AUM by Investment Type2 ($B) AUM by Strategy2 ($B) Investment by Region2 ($B) Global pla
Slide 40: Successful History of Capital Raising
Successful History of Capital Raising Capital Raised ($B) By Strategy By Geography of Deployment $10.9B Raised in 2018 ($B) Intense focus on investment performance Top talent in key roles Focused, scalable product offerings Utilization of the platform Strategic utilization of CBRE capital Growth Str
Slide 41: AUM Growth Drivers Over the Last Five Years
AUM Growth Drivers Over the Last Five Years $103.2 ($B) Increase Decrease Total $89.1 ($9.8) ($10.4) ($12.5) $9.1 $40.0 $105.5
Slide 42: Trammell Crow Company Leading U.S. Commercial Real Estate Developer
Trammell Crow Company Leading U.S. Commercial Real Estate Developer Representative Equity Partners In Process by Product Types1 Projects in Process/Pipeline ($ in billions) Total Cost $9.0B 2 3 See slide 106 for footnotes.
Slide 43: Strong Realized Returns to Equity Partners
Strong Realized Returns to Equity Partners Partner net realized IRR is net of all costs, fees and promotes paid to Trammell Crow Company. 1
Slide 44: Hana Premium Flexible Space Solutions
Hana Premium Flexible Space Solutions U.S. Office Stock (MSF) 15%-20% 80%-85% ~35 ~220-440 CAGR ~18-26% Agile Market Trends Substantial shift in occupier needs Flexible Workforce – 75% of CRE executives anticipate using agile solutions in their growth plan The War for Talent – 88% of employees want
Slide 45: Targets Enterprise Clients and Structural Alignment with Owners
Targets Enterprise Clients and Structural Alignment with Owners Branded, semi-custom suites Flexible lease terms Enterprise teams of 15-300+ Control over branding/culture Conference, meeting and project team spaces Available by day, week, or month Light food & beverage offerings Integrated, easy to
Slide 46: Diversified Leadership Team: Hospitality, Tech and Consumer Product Expertise
Diversified Leadership Team: Hospitality, Tech and Consumer Product Expertise Brian Harrington Chief Experience Officer Zipcar, eBay, Starwood Scott Marshall Chief Dev. Officer / Pres. CBRE, Colliers Christopher Corpuel VP, Product Amazon, Hilton Andrew Kupiec Chief Executive Officer Zipcar, Avis Bu
Slide 47: Advisory Services
2019 CBRE INVESTOR DAY Mike Lafitte Global Chief Executive Officer, Advisory Services ADVISORY SERVICES
Slide 48: Advisory Services
ADVISORY SERVICES Property Sales Loan Servicing Advisory Leasing 2018 Advisory Fee Revenue by Geography Advisory Property & Project Mgmt. Commercial Mort. Origination Valuation Up 6% - 8% Up 8% - 10% Growth Expectations $229.6B Transactions $53.4B Transactions $151.4B* Transactions 2.8B** Square Fee
Slide 49: CBRE Reorganization – Advisory
CBRE Reorganization – Advisory Impact Focused Leadership and Accountability. Market leaders fully focused on Advisory businesses – tied to performance metrics and compensation People. Promoted up-and-coming leaders into new, more impactful, roles Collaboration. Organizing globally, not by geography,
Slide 50: Market Backdrop: Our Industry is in Transition
Market Backdrop: Our Industry is in Transition Client Preferences Are Changing How Does CBRE Outperform in the Evolving Environment? Top Talent Advisory Platform Scale Connectivity Culture Local Transactional Commoditized Global Advisory Differentiated
Slide 51: Top Talent: Capital Markets Leader Across the Largest Markets
Top Talent: CBRE Capital Markets is the Leader Across the Largest Markets CBRE is the Overall Leader in Capital Markets Share of US Property Sales per RCA CBRE Capital Markets has Broad Leadership Across the Largest Local Markets See slide 106 for footnotes.
Slide 52: Top Talent: CBRE Leads on the Largest Occupier Leasing Transactions
Top Talent: CBRE Leads on the Largest Occupier Leasing Transactions CBRE Does More of the Largest Leasing Transactions Share of Top 25 US Office Occupier Leasing Transactions* CBRE Most Often the Local Market Leader in US Occupier Transactions *Note: Data represent top 25 deals data for each market
Slide 53: Advisory Platform for Occupiers & Investors
Advisory Platform for Occupiers & Investors Office Industrial & Logistics Retail Multi-Family Hotels Specialty PROPERTY TYPES Workplace Strategy Labor Analytics Economic Incentives Supply Chain Analytics Retail Analytics Portfolio Services ADVISORY CAPABILITIES Law Firms Tech & Media Mall Specialty
Slide 54: Investing in Digital & Technology and Driving Adoption
Advisory Platform: Investing in Digital & Technology and Driving Adoption 35 products launched or rolling out in Advisory in the CBRE Vantage suite of enabling technologies Deal Flow & Connector Dimension
Slide 55: Scale, Connectivity, Culture: Global Market Leadership
Scale, Connectivity, Culture: Global Market Leadership CRE Services Market Capitalization 2018 New England Expansion Demonstrates Increasing Scale and Capabilities Global Market Leadership #1 Leasing #1 Capital Markets #1 Appraisal & Valuation #1 Property Management Source: FactSet. Peers include Co
Slide 56: Scale, Connectivity, Culture: CBRE Workplace360
Scale, Connectivity, Culture: CBRE Workplace360 Improving the Way We Work Generating Business Optimizing Our Assets Tangible Results1 93% would not go back to the old way of working 79% felt more productive 95% felt CBRE made a significant investment in people 94% agree or strongly agree that they c
Slide 57: Investing in Local Market Leadership
Investing in Local Market Leadership to Bring it All Together United Kingdom 23 Offices $39.2B Transaction Value Continental Europe 118 Offices $54.3B Transaction Value North Asia 33 Offices $23.5B Transaction Value Pacific 23 Offices $11.1B Transaction Value Southeast Asia, India, Middle East, Afri
Slide 58: CBRE Advisory Differentiation
CBRE Advisory Differentiation For our Clients: Top producer talent Advisory platform, notably Digital & Technology Scale, connectivity and culture Global account management BETTER CLIENT OUTCOMES For our Professionals: Differentiated Advisory platform, notably Digital & Technology Culture and connec
Slide 59: Driving Client Value with Integrated, Global Relationships
Scale, Connectivity, Culture: Driving Client Value with Integrated, Global, Relationships Fee Revenue1 from Top 100 Americas Clients (Advisory and GWS) Fee Revenue1 from Top 100 Facilities Mgmt. Clients CBRE’s global footprint allows us to do more for our largest clients in the Americas CBRE’s best-
Slide 60: Account Based Leadership Demonstrates Increasing Differentiation
Account Based Leadership Demonstrates CBRE’s Increasing Differentiation Almost 60% of Large Leasing Transactions Come From Account Based Relationships CBRE Account Based Execution is a Relative Strength and Contributed to Share Gains Market percentage measured in square feet of leasing transactions.
Slide 61: Differentiation Drives Advantage in Recruiting and Retaining Talent
Differentiation Drives Competitive Advantage when Recruiting and Retaining Talent 4-Year Summary: Hires and Losses from and to Competitors (U.S.) Boutique Competitors are Increasingly Less Competitive 25% of producers lost to competitors were either involuntarily terminated or on performance improve
Slide 62: Advisory Services Case Study
2019 CBRE INVESTOR DAY Lynn Williams Vice Chairman, Advisory & Transaction Services ADVISORY SERVICES CASE STUDY
Slide 63: My Path to CBRE
My Path to CBRE Career Crossroads Joined CBRE in 2015 after starting career at a competitor. Joined CBRE in 2015 after starting career at a competitor Occupier Client Expectations Talent Local Global Thought leadership and innovation Advisory capabilities Tools/Technology/Data Leadership committed t
Slide 64: Investment in Advisory Capabilities Drives Better Client Outcomes
Investment in Advisory capabilities drive better client outcomes Investments are differentiated within the industry and provide a competitive advantage Driving management consensus Defining the new paradigm Navigating the platform Ensuring client confidence Key differentiator Establishing parameters
Slide 65: Client Outcome Case Study: City National Bank
Client Outcome Case Study: City National Bank CBRE Services Engaged Workplace Labor Analytics Financial Consulting Group Challenges City National Bank at capacity in 450,000 SF headquarters Rapid growth of LA-based business units CNB recently merged into Royal Bank of Canada
Slide 66: Client Outcome Case Study: City National Bank
Client Outcome Case Study: City National Bank Cost Calculator: Calculate savings across markets for various occupations and headcounts. Compare cost savings opportunities across markets. ROI Business Calculator: Estimate total return and savings including up front costs for labor (e.g., severance, r
Slide 67: Client Outcome Case Study: City National Bank
Client Outcome Case Study: City National Bank Adjacency & Location Assessment and Key Findings LOCATION 1 COLLEAGUE COMMUTE CENTROID Support Divisions Business Lines INTEGRATED SUPPORT DIVISIONS INDEPENDENT SUPPORT DIVISIONS BUSINESS LINES W/SUPPORT BUSINESS LINES W/SUPPORT Commercial Banking Specia
Slide 68: Client Outcome Case Study: City National Bank
Client Outcome Case Study: City National Bank Financial Consulting Group Pre-Tax Net Present Value @ 8.0% Total Pre-Tax Occupancy Costs
Slide 69: 606,000 SF Headquarters Solution
606,000 SF Headquarters Solution $140 Million+ in Savings Increased seat capacity by 37% Increased space requirement by 15% Secured prominent building top signage on two landmark towers New space accommodated faster growth Minimized colleague disruption Allowed retention and expansion of colleague b
Slide 70: Client Outcome Case Study: City National Bank
City National 2CAL 296,000 SF Client Outcome Case Study: City National Bank New Efficient Flexible Workspace
Slide 71: CBRE-Driven Professional Success
CBRE-Driven Professional Success Dramatically Increased Productivity 95 transactions in 3M square feet in 10 countries Energized Professional Engagement Top 300 each year Colbert Coldwell Circle (top 3%) (2017, 2016) Edward S. Gordon Award winner Prolonged Career Horizon
Slide 72: Global Workplace Solutions
2019 CBRE INVESTOR DAY Bill Concannon Global Chief Executive Officer, Global Workplace Solutions GLOBAL WORKPLACE SOLUTIONS
Slide 73: Global Workplace Solutions
Global Workplace Solutions Account-Based Contractual Business 4 Major Service Offerings 49,000 Employees 100+ Countries 500+ Contractual Client Portfolios 95% Client Satisfaction Mission Create measurably superior client outcomes by improving occupant experiences through safe, engaging and high perf
Slide 74: CBRE Reorganization – Global Workplace Solutions
CBRE Reorganization – Global Workplace Solutions Impact Business model. Creates a clear structure of our global operating model, lines of business and client outcomes Accountability. Creates strong lines of accountability and authority within our accounts-based business Transparency. Provides visibi
Slide 75: Facilities Management
FACILITIES MANAGEMENT CBRE
Slide 76: Large and Growing Facilities Management Market
Large and Growing Facilities Management Market Long-term, performance-based management contracts Proven to create value: Simplification Cost Reduction Risk Reduction Consistency/Globalization Speed & Agility Increasing differentiation in our fully integrated facilities management model $100B+ addres
Slide 77: CBRE's Facilities Management Differentiation
CBRE Self Perform CBRE Subcontract Energy CBRE Account Management Building Maintenance Adjacent Technical Services* Experience Services** Energy Management and Energy Projects Cleaning, Exterior, Security, Elevators, Pest, HVAC, etc. FacilitySource DIGITAL & TECHNOLOGY and FM BACK OFFICE Enterprise
Slide 78: Project Management
PROJECT MANAGEMENT CBRE
Slide 79: Project Management: Bridge Between Transactions and Facilities
Project Management: Bridge Between Transactions and Facilities Advisory & Transaction Services Design Cost consulting and mgmt Energy / efficiency planning Occupancy mgmt Capital planning Architecture and engineering Master planning Stakeholder management Consulting Project Management within CBRE Po
Slide 80: Large and Growing Project Management Market
Large and Growing Project Management Market Source: ENR Top 100 Lists, CBRE Econometric Advisors, L.E.K. interviews and analysis Addressable U.S. Outsourced Project Management Addressable Market Breakout (As of December 31, 2017) Percentage De-prioritized Total Construction Management Market Market
Slide 81: Global Workplace Solutions Positioned for Growth
Global workplace solutions Positioned for growth
Slide 82: Macro and Industry Trends Continue to Favor Growth for GWS
Macro and Industry Trends Continue to Favor Growth for GWS In a typical year, new clients drive ~40% of growth …while existing clients drive ~60% of growth New clients and sectors Adjacent Offerings Expanded Geographies Expanded Asset Type Expanded Service Lines Today, GWS has an estimated 30% share
Slide 83: Record Pipeline Growth
Record Pipeline Growth Global Workplace Solutions’ Pipeline Has Nearly Doubled in Two Years Pipeline Value1 Indexed to 2016 Embedded sales leaders in each of our Divisions Continued strong pipeline in vertical markets such as Financial Services and Technology Momentum into Life Sciences, Industrial
Slide 84: Strong Client Satisfaction Drives "Dark Green" Dividend
Strong Client Satisfaction Drive “Dark Green” Dividend Global Client Satisfaction Scores have continually risen in the last 3 years Annual survey administered by an independent third party High client satisfaction correlates to strong renewal rates and expansion opportunities 90%+ renewal of expirin
Slide 85: In Summary…
Large and growing outsourcing markets provide significant headway for growth Momentum demonstrated through pipeline growth and improved client outcomes Integrated account model and new adjacent services drive continued differentiation In Summary…
Slide 86: A Case Study of the CBRE/Uber Relationship
2019 CBRE INVESTOR DAY Darcy Mackay Chief Human Resources Officer Understanding Global Workplace Solutions: A Case Study of the CBRE/Uber Relationship
Slide 87: The CBRE & Uber Relationship Spans Countries
The CBRE & Uber Relationship Spans 71 Countries 2014 2018 Relationship began with six brokerage assignments in USA Today 2019 CBRE Investor Day | By 2018, CBRE had completed 158 brokerage assignments worldwide During this time, CBRE began providing Lease Administration and Project Management globall
Slide 88: Supporting Uber's Real Estate Needs Worldwide
Supporting Uber’s real estate needs in locations worldwide Understanding Portfolio Transactions and Project Mgmt. 2019 CBRE Investor Day |
Slide 89: Advisory & Transaction Example (Midtown Manhattan)
Advisory & Transaction Example (Midtown Manhattan) Services: Comprehensive location strategy, including a commuter impact study Tenant representation of 35K square foot office lease Results: Selected more centrally located office which reduced the average employee commute time by ~30% Increased tech
Slide 90: Project Management Example (Seattle, Washington)
Project Management Example (Seattle, Washington) Services: Comprehensive project management for several key projects in Seattle Results: Completed multiple projects for driver hub facilities (“Uber Green Light” locations) Completed 2 full 23K SF Engineering floors; 3+ more floors underway Constructe
Slide 91: Facilities Management Example
Facilities Management Example Maintain building equipment (e.g., HVAC, lighting, plumbing, building controls) Leverage economies of scale for service contracts (e.g., janitorial, landscaping) Support services (e.g., Host, supply chain, safety, accounting) Third-Party Vendors CBRE Support Team CBRE E
Slide 92: The Expanding Definition of Facilities Management: Experience Services
The Expanding Definition of Facilities Management: Experience Services When you enter the facility, you are greeted by an “experience” concierge On your way to your meeting, you take notice of the clean surroundings Your walk includes taking a modern elevator to one of the higher floors in the build
Slide 93: The Expanding Definition of Facilities Management: Experience Services
All AV, refreshments, etc., are ready During a break, you are offered snacks from Uber’s coffee bar At the end of the meeting, the experience concierge returns your coat The Expanding Definition of Facilities Management: Experience Services You notice your meeting space’s unique set up
Slide 94: Introducing CBRE Host
Introducing CBRE host CBRE fost
Slide 95: The GWS Account Management Model
The GWS Account Management Model Our Mission: Creating measurably superior client outcomes for Uber by improving occupant experiences through safe, engaging and high performing workplaces. Facilities Management Advisory & Transactions Project Management Consulting & Analytics Richard Hughes
Slide 96: Footnotes and GAAP Reconciliation Tables
Footnotes and gaap reconciliation tables
Slide 97: Debt & Leverage
($ in millions) December 31, 2018 Cash1 $ 622 Revolving credit facility - Senior term loans2 751 Senior notes2 1,015 Other debt3,4 4 Total debt $ 1,770 Total net debt5 $ 1,148 TTM Adjusted EBITDA6 $ 1,905 Net debt to TTM Adjusted EBITDA 0.60x Debt & Leverage Excludes $155.2 million of cash in consol
Slide 98: Non-GAAP Financial Measures
Non-GAAP Financial Measures The following measures are considered “non-GAAP financial measures” under SEC guidelines: fee revenue contractual fee revenue net income attributable to CBRE Group, Inc., as adjusted (which we also refer to as “adjusted net income”) diluted income per share attributable t
Slide 99: Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS
Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings Per Share Twelve Months Ended December 31, ($ in millions, except per share amounts) 2018 2017 2016 2015 2014 20132 20122 Net income attributable to CBRE Group, Inc. $ 1,063.2 $ 697.1 $ 573.1 $ 547.1 $ 484.5 $ 316.5 $ 315.6 On
Slide 100: Reconciliation of Revenue to Fee Revenue and Contractual Fee Revenue
Twelve Months Ended December 31, ($ in millions) 2018 2017 2016 2015 2014 2006 Consolidated revenue $ 21,340.1 $ 18,628.8 $ 17,369.1 $ 10,855.8 $ 9,049.9 $ 4,032.0 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work performed f
Slide 101: Reconciliation of Revenue to Fee Revenue and Adjusted Revenue by Segment
Twelve Months Ended December 31, 2018 ($ in millions) Advisory Services Global Workplace Solutions Real Estate Investments Consolidated revenue $ 8,243.0 $ 12,562.4 $ 534.7 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work pe
Slide 102: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Twelve Months Ended December 31, ($ in millions) 2018 2017 2016 2015 2014 2013 20121 Net income attributable to CBRE Group, Inc. $ 1,063.2 $ 697.1 $ 573.1 $ 547.1 $ 484.5 $ 316.5 $ 315.6 Add: Depreciation and amortization 452.0 406.1 366.9 314.1 265.1 191.3 170.9 Interest expense 107.3 136.8 144.9 1
Slide 103: Reconciliation of Revenue to Fee Revenue
($ in millions) Twelve Months Ended December 31, 2018 Americas EMEA & APAC Fee Revenue: 100 Largest Americas Clients Advisory & GWS $ 2,094.2 $ 857.3 Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work performed for clients 3,988.6 1
Slide 104: Footnotes
Footnotes Slide 4 Adjusted EPS excludes a one-time non-cash gain associated with remeasuring CBRE’s investment in an unconsolidated subsidiary in New England to fair value as of the date it acquired the remaining controlling interest, depreciation and amortization expense related to certain assets a
Slide 105: Footnotes
Footnotes Slides 10, 11, 48 Fee revenue is gross revenue less both client reimbursed costs largely associated with employees that are dedicated to client facilities and subcontracted vendor work performed for clients. EBITDA represents earnings before net interest expense, write-off of financing cos
Slide 106: Footnotes
Footnotes Slide 42 In process as of December 31, 2018. In process figures include Long-Term Operating Assets (LTOA) of $30M for Q4 2018, $151M for Q4 2017, $152M for Q4 2016, $152M for Q4 2015, $273M for Q4 2014 and $851M for Q4 2013. LTOA are projects that have achieved a stabilized level of occupa