Q2 2020 EARNINGS CALL FORWARD-LOOKING STATEMENTS This presentation - PowerPoint PPT Presentation

July 31, 2020 Q2 2020 EARNINGS CALL

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 the impact of the Covid-19 pandemic on our business operations and financial position, CBRE’s future growth momentum, operations, market share, business outlook, capital deployment, acquisition integration and financial performance expectations. These statements are estimates only and actual results may ultimately differ from them. Except to the extent required by applicable securities laws, we undertake no obligation to update or publicly revise any of the forward-looking statements that you may hear today. Please refer to our second quarter earnings release, furnished on Form 8-K, our most recent annual report filed on Form 10-K and our most recent quarterly report filed on Form 10-Q, and in particular any discussion of risk factors or forward-looking statements therein, which are available on the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any forward-looking statements that you may hear today. We may make certain statements during the course of this presentation, which include references to “non-GAAP financial measures,” as defined by SEC regulations. Where required by these regulations, we have provided reconciliations of these measures to what we believe are the most directly comparable GAAP measures, which are included in the appendix. CBRE GROUP, INC. 2Q 2020 EARNINGS CONFERENCE CALL | 2

CONFERENCE CALL PARTICIPANTS Bob Sulentic President and Chief Executive Officer Leah Stearns Chief Financial Officer Kristyn Farahmand Vice President, Investor Relations & Corporate Finance CBRE GROUP, INC. 2Q 2020 EARNINGS CONFERENCE CALL | 3

CONSOLIDATED RESULTS SUMMARY $ IN MILLIONS EXCEPT PER SHARE FIGURES 2Q20 2Q20 2Q19 2Q19 US USD Loca cal C Currency cy 1 Revenu nue $5,381 $5,714 ▼ (6%) ▼ (4%) Fee R ee Rev evenue $2,256 $2,849 ▼ (21%) ▼ (19%) Adjusted ed E EBITD TDA $267 $468 ▼ (43%) ▼ (42%) Ear arnings gs P Per D Diluted Sh d Shar are $0.24 $0.66 ▼ (63%) ▼ (62%) Adj djusted E d Ear arnings gs P Per D Diluted Sh Shar are $0.35 $0.81 ▼ (57%) ▼ (56%) • Second quarter results impacted by Covid-19 pandemic issues across major markets – Results include $25 million in Covid-related costs and $16 million from Covid- relief fund donation – Reduced EPS and Adjusted EPS by approximately $0.10 • Strength in GWS offset pressure in more cyclical Advisory and REI segments 1.Local currency percent changes versus prior year is calculated by comparing current year results at prior year exchange rates versus prior year results. CBRE GROUP, INC. 2Q 2020 EARNINGS CONFERENCE CALL | 4 Definitions and reconciliations are provided at the end of this presentation.

BOB S SULENT ENTIC CHIEF EXECUTIVE OFFICER

FORTIFIED BUSINESS WELL POSITIONED TO WITHSTAND COVID -19 Resiliency Improvements Emerging Occupier Trends • Double-digit GWS Adj. EBITDA • Greater employee flexibility, expect growth points to resiliency of GWS increase in hybrid work business • Physical office remains important in • US Development business well hybrid work models positioned; expect to earn 2x more this year and next as compared to • Decades long densification trend to previous peak likely reverse • $245B loan servicing portfolio • Occupiers seeking guidance to generates recurring revenue navigate uncertain environment • Investment management earns significant majority of adj. EBITDA from recurring asset management fees CBRE GROUP, INC. 2Q 2020 EARNINGS CONFERENCE CALL | 6

LEAH S STEA EARNS RNS CHIEF FINANCIAL OFFICER

ADVISORY SERVICES $ IN MILLIONS, TOTALS MAY NOT SUM DUE TO ROUNDING Adjusted EB Adj EBITDA Fee R ee Rev evenue • Leasing contracted 38% $334 $1,935 and 43% globally and in $818 the US, respectively $1,339 $510 • Property sales fell 48% $133 $607 globally and 51% in $342 13.6% 15.8% 9.9% 17.2% the US $511 $487 Fee Fee Fee Margin Fee Margin Margin Margin • Loan servicing revenue 2Q19 2Q20 2Q19 2Q20 Advisory Leasing climbed 15% partially Capital Markets Property & Advisory Proj. Mgt., Valuation & Loan Servicing offsetting more cyclical 2Q 2Q20 S 20 Sales s Revenue B By P Prop operty Type 2Q20 Lea easing R Rev even enue By e By Proper erty T Type business lines Other & • Adjusted EBITDA includes Other & Consulting Office Consulting $19M in incremental costs 15% 27% 22% related to Covid and Industrial Office donation allocation Multifamily 26% 53% Retail 19% 12% Industrial 21% Retail 6% CBRE GROUP, INC. 2Q 2020 EARNINGS CONFERENCE CALL | 8 Definitions and reconciliations are provided at the end of this presentation.

GLOBAL WORKPLACE SOLUTIONS (GWS) $ IN MILLIONS, TOTALS MAY NOT SUM DUE TO ROUNDING Fee R ee Rev evenue Adj Adjusted EB EBITDA YTD Q D Q2 2 2020 R 2020 Revenue By Ind Indust stry $764 $755 $108 $161 Other Financial 18% $116 Services $104 26% Retail 6% $647 $603 Life Sciences & Tech., 13.6% 15.4% Healthcare Media & Fee Fee 17% Telecom. Margin Margin Indust. & 22% Manuf. 2Q19 2Q20 2Q19 2Q20 12% Project Management & Transactions Facilities Management • Facilities management (FM) grew gross and fee revenue 13% and 7%, respectively • Disciplined cost management drove Adjusted EBITDA growth of over 11% despite $20M in incremental costs related to Covid and relief fund donation allocation • Business well diversified across client types • Pipeline weighted towards logistics, financial services and technology CBRE GROUP, INC. 2Q 2020 EARNINGS CONFERENCE CALL | 9 Definitions and reconciliations are provided at the end of this presentation.

REAL ESTATE INVESTMENTS $ IN MILLIONS, TOTALS MAY NOT SUM DUE TO ROUNDING Adjust usted E EBITDA Adjusted ed R Reven enue 1 $169 $31 $154 $18 2Q19 2Q20 2Q19 2Q20 Devel elopmen ent • Well positioned for current environment; nearly 80% of in-process inventory related to industrial, multifamily, healthcare and office properties at least 90% leased • Strong demand for high-quality assets despite challenging conditions Investment M nt Manage gement nt • Adjusted EBITDA grew 62% over the prior year driven by higher recurring fees and carried interest • Focus on core and core plus strategies has been highly advantageous Flexibl ble S Space S Solutions ns (Hana) ana) • Impacted by mandatory shut-down driving lower revenue and longer ramp-up periods for new units • New unit pipeline building partially reflecting higher demand for asset-light opportunities 1. Adjusted Revenue for Development is shown net of cost of sales . CBRE GROUP, INC. 2Q 2020 EARNINGS CONFERENCE CALL | 10 Definitions and reconciliations are provided at the end of this presentation.

2020 OUTLOOK: PROVIDING QUALITATIVE GUIDANCE FOR THE YEAR # o of C Confide dent ntial ality Agreement nts in % Chang % hange i in # n # of S Signe gned Conf nfidentiality Y-o- Y % % Chang hange in U n US T Trans ansaction n Agreem eemen ents Jun une 2 e 2020 vs vs. Prev evious 2 2-Year ar A Averag age Coun unt & & Reve evenue ue Y-o-Y, 4-week moving average Leasing & Property Sales 60% Industrial 20% 40% 10% Multifamily 20% 0% 0% All (10)% (20)% (20)% Retail (30)% (40)% (40)% Hotel (60)% (50)% Office (80)% (60)% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 0% 10% 20% 30% 40% 50% Transaction Count Transaction Revenue 2020 2019 2018 • Robust pipeline built pre-Covid onset drove stronger than expected Q2 results – Future leasing and sales performance requires pipeline replenishment – Carefully monitoring forward-looking indicators to gauge pipeline rebuilding – Improving transaction count trend but weighted to smaller deals • Industrial and multifamily lead recovery in June; shift to e-commerce continuing to boost industrial transactions CBRE GROUP, INC. 2Q 2020 EARNINGS CONFERENCE CALL | 11

ENHANCED FINANCIAL RESILIENCY POSITIONS US WELL Total L Liquidity ty Net et Deb ebt t to TTM TTM Adj. E EBI BITD TDA $ B Billi llions 0.8x $3.5 $3.4 $3.0 0.6x 0.6x 0. 0.2x b below ow Q2’1 ’19 $0. $0.5B a above Q Q2’ 2’19 Q2 2019 Q1 2020 Q2 2020 Q2 2019 Q1 2020 Q2 2020 • Continued to strengthen balance sheet and liquidity position despite challenging macroeconomic conditions • Expect to continue prioritizing liquidity preservation over pursuing large, discretionary capital outlays – Seek more visibility on the timing and strength of the economic recovery CBRE GROUP, INC. 2Q 2020 EARNINGS CONFERENCE CALL | 12 Definitions and reconciliations are provided at the end of this presentation.