Slide 1: Forward-Looking Statements
This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including qualitative and quantitative statements regarding our future growth momentum, operations, financial performance, business outlook and our ability to in
Slide 2: Outlook
Positive trends Strong momentum across our business lines Underlying fundamentals continue to improve Market sentiment remains positive Considerations We remain attentive to uneven economic growth 2015 In October, we raised adjusted EPS guidance for 2015 by ten cents to $2.00 - $2.051 Outlook See sl
Slide 3: 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 $86 billion AUM Investment Management1 SCALE AND DIVERS
Slide 4: Track record of long-term growth
Revenue up 14% (21% Local Currency) Adjusted EPS2 up 24% (30% Local Currency) Track record of long-term growth 16% Revenue CAGR From 2003 to TTM Q3 2015: YTD Q3 2015 vs. YTD Q3 2014: 18% Normalized EBITDA1 CAGR See slide 17 for footnotes.
Slide 5: CBRE Leads a Sector With Strong Underlying Growth Dynamics
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 Closed acquisition of Global Work
Slide 6: 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 Enablement, Research, Marketing
Slide 7: Driving Market Share Gains with Proprietary Platforms & Insights
Driving Market Share Gains with Proprietary Platforms & Insights technology and data analytics CBRE is also using proprietary platforms and data analytics to manage and grow its business (see snapshot to the left1): Bigger bubbles represent size of opportunity The bubble’s fill shows how much of the
Slide 8: Digital business and the collaborative workplace of the future
Digital business and the collaborative workplace of the future innovation CBRE is Leading by example CBRE is leading by example having created “Workplace 360” offices in over 30 cities globally Attracts collaborative, high energy, diverse, talent All seating is unassigned Mobility is enabled by tech
Slide 9: Mergers and acquisitions strategy
Approximately 100 Acquisitions Since 2005 Mergers and acquisitions strategy Transactions generally fall into two categories: Strategic in-fill acquisitions sourced principally by lines of business Four larger, transformational transactions driven by macro strategy On September 1, 2015, CBRE acquired
Slide 10: GWS Acquisition Solidifies a More Stable, Resilient Revenue and Earnings Profile
GWS Acquisition Solidifies a More Stable, Resilient Long-Term Growth-Oriented Revenue and Earnings Profile 2014 fee revenue Mix with gws acquisition Total Fee Revenue: $3,742 Combined Total Fee Revenue: $8,4264 5.0x See slide 17 for footnotes. Contractual Sources 3 $798 (21%) Contractual Sources 3 $
Slide 11: Key takeaways
CBRE: Leads an industry with strong underlying growth dynamics Is very well positioned to continue its long-term track record of growth Has developed into a balanced business with a more stable growth profile Has a strong balance sheet and significant liquidity Is continuing to extend its competitiv
Slide 12: 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 13: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Twelve Months Ended ($ in millions) September 30, 2015 December 31, 2003 Normalized EBITDA $ 1,307.5 $ 183.2 Adjustments: Integration and other costs related to acquisitions 24.9 13.6 Carried interest incentive compensation expense1 20.9 - Cost containment expenses - 36.8 EBITDA 1,261.7 132.8 Add: I
Slide 14: Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS
Nine Months Ended September 30, ($ in millions, except per share amounts) 2015 2014 Net income attributable to CBRE Group, Inc. $ 367.1 $ 280.2 Amortization expense related to certain intangible assets attributable to acquisitions, net of tax 34.3 37.3 Integration and other costs related to acquisit
Slide 15: Reconciliation of gross revenue to fee revenue
Reconciliation of gross revenue to fee revenue Twelve Months Ended December 31, ($ in millions) 2014 Pro-forma 1,2 2006 Consolidated revenue $ 12,457 $ 4,032 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work performed for cli
Slide 16: Footnotes
Footnotes Slide 11 Note: Combined total fee revenue for 2014 has been adjusted downward from what was last presented in September 2015 for approximately $300 million of additional client-reimbursed sub-contracted vendor costs within the acquired Global Workplace Solutions business. Other includes De
Slide 17: Footnotes
FOOTNOTES ‘Siide3 1, Weave not reconciled the non-GAAP EPS guidance to the most directly comparable GAAP measure because this cannot be done without unreasonable effort. Slide 4 1. Assets Under Management (AUM) as of September 30, 2015, 2. As of December 31, 2014, includes affiliates, 43. Property a