Colliers International Group Inc. · TSX:CIGI
Colliers International — Q4 2023 Earnings Presentation
25 slides from Colliers International's earnings presentation, Feb 8, 2024
Slide 1: Fourth Quarter 2023 Financial Results
1 Fourth Quarter 2023 Financial Results February 8, 2024
Slide 2: Forward-Looking Statements
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 (US$ millions, except per share amounts) Three months ended %Change 2023 2022 December 31 USD LC (1) Revenue 1,235.2 1,222.4 1% 0% Adjusted EBITDA 198.4 202.7 -2% -3% Robust revenue growth continues in high-value recurring Adjusted EBITDA Margin 16.1% 16.6% services Adjusted EP
Slide 4: Consolidated Revenues - Full Year
Colliers 4 Consolidated Revenues Full Year (US$ millions) % Change over 2022 USD LC Investment Management (1) 29% 28% Investment Management (1) . Outsourcing & Advisory 11% 11% 3 . Leasing -5% -5% 1, 2.3 Capital Markets -35% -35% Outsourcing & 2,0 2.1 Total -3% -3% Advisory Revenue Mix 2023 2022 1,1
Slide 5: Broad Diversification
Colliers 5 Broad Diversification Year ended December 31, 2023 2023 Revenue by Service 2023 AEBITDA by Service 38% 48% 25% 59% 73% 27% Recurring Recurring 16% 11% 35% Outsourcing & Advisory Leasing Leasing and Capital Markets Investment Management Capital Markets Please refer to Slide 19
Slide 6: Consolidated Revenues - Fourth Quarter
Colliers 6 Consolidated Revenues Fourth Quarter (US$ millions) % Change over Q4 2022 USD LC Investment Management (1) 6% 6% Investment Management (1) 12 .1 Outsourcing & Advisory 12% 10% Leasing -5% -6% 121.3 Capital Markets -16% -16% Outsourcing & 0. 1 .1 Total 1% 0% Advisory Revenue Mix Q4 2023 Q4
Slide 7: Geographic Mix
Colliers 7 Geographic Mix Fourth Quarter (US$ millions) Q4 2023 Revenues Q4 2022 Revenues Q4 2023 AEBITDA Q4 2022 AEBITDA (1) Q4 2023 GAAP Operating Earnings: $53.3M Americas, $28.9M EMEA, $26.0M Asia Pacific, $41.5M Investment Management (2) Q4 2022 GAAP Operating Earnings: $52.0M Americas, $30.4M
Slide 8: Americas
Colliers 8 Americas Fourth Quarter (US$ millions) Revenues AEBITDA Lower Capital Markets and Leasing activity partly offset by higher Outsourcing & Advisory revenues 2 1. 323. Adjusted EBITDA impacted by declines in higher margin Outsourcing & transactional revenues Advisory 23 . 220. Leasing 11. 12
Slide 9: EMEA
Colliers 9 EMEA Fourth Quarter (US$ millions) Revenues AEBITDA Lower Capital Markets activity, particularly in Germany and the Nordics, partly offset by higher Outsourcing & Advisory revenues Outsourcing & 1 .1 13 . Adjusted EBITDA margin impacted by changes in service Advisory mix 2.1 . Leasing 1 .
Slide 10: APAC
Colliers 10 APAC Fourth Quarter (US$ millions) Revenues AEBITDA Revenue decline attributable to lower Capital Markets activity offset by acquisitions 2. Outsourcing & 10 .3 Adjusted EBITDA impacted by changes in service mix Advisory . Leasing . 2. 1 . 1 . Capital Markets 3 . 2023 2022 2023 2022 USD
Slide 11: Investment Management
Colliers 11 Investment Management Fourth Quarter (US$ millions) Revenues AEBITDA Growth driven by higher management fees from increased assets under management year over year .2 3. Pass-through carried $98.2 billion AUM as of December 31, 2023 interest • Up 1% versus December 31, 2022 • Nearly flat
Slide 12: Investment Management: Long-duration, differentiated AUM
Colliers 12 Investment Management Focus on long-duration, highly differentiated AUM AUM: $98.2B | FPAUM: $50.8B AUM by Asset Class AUM by Strategy AUM by Geography 51% 37% 78% 21% 22% 51% 12% 4% 24% Alternatives Infrastructure Traditional Real Estate Credit Perpetual Capital Long-dated Funds Managed
Slide 13: Capitalization & Capital Allocation
Colliers 13 Capitalization & Capital Allocation (US$ millions) December 31, 2023 December 31, 2022 Highlights Cash $ 181.1 $ 173.7 • Leverage ratio of 2.2x Total Debt 1,502.6 1,439.1 Net Debt $ 1,321.5 $ 1,265.4 • 66% of debt at fixed rates as of December 31, 2023 Convertible Notes - 226.5 Redeemabl
Slide 14: Outlook for 2024
Colliers 14 Outlook for 2024 (US$ millions) • Capital Markets and Leasing conditions expected to remain challenging in the first half of the year followed by year-over-year growth in the second half • Outsourcing & Advisory revenue growth is expected to remain resilient • Investment Management reven
Slide 15: Appendix
Appendix Reconciliation of non-GAAP measures
Slide 16: Reconciliation of GAAP earnings to adjusted EBITDA
Colliers 16 Reconciliation of GAAP earnings to adjusted EBITDA Three months ended Twelve months ended (US$ thousands) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net earnings $ 81,221 $ 61,972 $ 144,691 $ 194,544 Income tax 29,974 24,976 68,086 95,010 Other income, includ
Slide 17: Reconciliation of GAAP earnings to adjusted net earnings and adjusted EPS
Colliers 17 Reconciliation of GAAP earnings to adjusted net earnings and adjusted earnings per share Three months ended Twelve months ended (US$ thousands) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net earnings $ 81,221 $ 61,972 $ 144,691 $ 194,544 Non-controlling inter
Slide 18: Reconciliation of net cash flow from operations to free cash flow
Colliers 18 Reconciliation of net cash flow from operations to free cash flow Three months ended Twelve months ended (US$ thousands) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net cash provided by operating activities $ 157,103 $ 238,501 $ 165,661 $ 67,031 Contingent acq
Slide 19: Other Non-GAAP Measures
Colliers 19 Other Non-GAAP Measures Local currency revenue and adjusted EBITDA 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 adjusted EBITDA variances
Slide 20: Appendix: Full Year Regional Details
Appendix Full Year Regional Details
Slide 21: Geographic Mix - Full Year
Colliers 21 Geographic Mix Full Year (US$ millions) 2023 Revenues 2022 Revenues 2023 AEBITDA 2022 AEBITDA (1) 2023 GAAP Operating Earnings: $174.6M Americas, $5.5M EMEA, $62.7M Asia Pacific, $103.1M Investment Management (2) 2022 GAAP Operating Earnings: $254.4M Americas, $9.9M EMEA, $72.3M Asia Pac
Slide 22: Americas - Full Year
Colliers 22 Americas Full Year (US$ millions) Revenues AEBITDA Market-driven decline in Capital Markets and, to a lesser extent, Leasing Internal growth in Outsourcing & Advisory as well as 1,1 .2 acquisitions Outsourcing & 1,2 0. Advisory Adjusted EBITDA impacted by changes in service mix and 1. an
Slide 23: EMEA - Full Year
Colliers 23 EMEA Full Year (US$ millions) Revenues AEBITDA Lower Capital Markets and Leasing revenues almost fully offset by growth in Outsourcing & Advisory revenues Outsourcing & 0 .2 Adjusted EBITDA impacted by changes in service mix .3 Advisory 1 . Leasing 1 0.1 1 1. .3 . Capital Markets 101. 20
Slide 24: APAC - Full Year
Colliers 24 APAC Full Year (US$ millions) Revenues AEBITDA Growth driven by Leasing and Outsourcing & Advisory revenues partly offset by lower Capital Markets activity Outsourcing & Adjusted EBITDA impacted by changes in service mix Advisory 321.2 3 . Leasing 12 .0 13 . 1 2.2 13.0 1 .0 Capital Marke
Slide 25: Investment Management - Full Year
Colliers 25 Investment Management Full Year (US$ millions) Revenues AEBITDA Growth driven by acquisitions and higher management fees from increased assets under management year over year . 30.3 Pass-through carried Investment 0. interest Management 3 . 3. 3 . 2 , ex. pass USD LC through Revenue Grow
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