CBRE : Q4 2019 Webcast Slides (opens in new window)

February 27, 2020

Q4 2019 EARNINGS CALL

F O R W A R D - L O O K I N G S T A T E M E N T S

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, 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 fourth 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.

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C O N F E R E N C E C A L L P A R T I C I P A N T S

Bob Sulentic

President and Chief Executive Officer

Leah Stearns

Chief Financial Officer

Kristyn Farahmand

Vice President, Investor Relations & Corporate Finance

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C O N S O L I D A T E D R E S U L T S S U M M A R Y

$ IN MILLIONS EXCEPT PER SHARE FIGURES

	4Q19	4Q18	USD	Local	2019	2018	USD
	Currency
Revenue
$7,119	$6,294	▲13%	▲14%	$23,894	$21,340	▲12%
Fee Revenue1	$3,672	$3,404	▲8%	▲9%	$11,861	$10,838	▲9%
Adjusted EBITDA2	$691	$655	▲5%	▲6%	$2,064	$1,905	▲8%
EPS3	$1.87	$1.15	▲63%	▲72%	$3.77	$3.10	▲22%
Adjusted EPS3,4	$1.32	$1.21	▲9%	▲18%	$3.71	$3.28	▲13%

Local

Currency

• 14%
• 11%
• 9%
• 26%
• 18%

• Closed 2019 with solid topline growth reflecting Q4 revenue and fee revenue growth of 13% and 8%, respectively
• REI segment Q4 adjusted EBITDA negatively impacted by delay of development asset sales into Q1 2020, which have since closed at previously anticipated valuations

See slide 27 for footnotes.

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BOB SULENTIC

PRESIDENT AND

CHIEF EXECUTIVE OFFICER

2 0 1 9 R E S U L T S E X T E N D L O N G - T E R M G R O W T H T R A J E C T O R Y

$ IN MILLIONS EXCEPT PER SHARE FIGURES

Revenue1Adjusted EBITDA1,2Adjusted EPS1,3

$23,894	$2,064	$3.71

$4,166	$454

$0.39

>19% CAGR

>16% CAGR

>25% CAGR

• 10th consecutive year of double-digit Adjusted EPS growth
• Driven by robust topline growth as CBRE consolidated market share within the industry and benefitted from secular demand trends across key lines of business

See slide 27 for footnotes.

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LEAH STEARNS

CHIEF FINANCIAL OFFICER

A D V I S O R Y S E R V I C E S

$ IN MILLIONS, TOTALS MAY NOT SUM DUE TO ROUNDING

$2,478	Fee Revenue1	$2,548
+3%
$1,123 (45%)		$1,048 (41%)
$802 (32%)		$904 (35%)
$553 (22%)		$596 (23%)
4Q18		4Q19

Advisory Leasing

Capital Markets

Property & Advisory Proj. Mgt., Valuation & Loan Servicing

See slide 18 for revenue detailed by line of business.

See slide 27 for footnotes.

4Q19 Fee

Revenue by Geography

APAC 13%

EMEA	Americas
22%
64%

Adjusted EBITDA2
$502	+4%	$523
20.2%		20.5%
Fee		Fee
Margin		Margin
4Q18		4Q19

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G L O B A L W O R K P L A C E S O L U T I O N S ( G W S )

$ IN MILLIONS, TOTALS MAY NOT SUM DUE TO ROUNDING

Fee Revenue1	$877	Adjusted EBITDA2	Adj. EBITDA Fee Margin %2
		14.3%
$774		$125
	13.0%
		$101
+13%		+24%	>120 BPS

4Q18

4Q19

4Q18

4Q19

4Q18

4Q19

• New business in the quarter diversified among many industries
• Multi-servicecontracts continuing to drive significant portion of growth; 40% of new business secured in Q4 from contracts including full suite of services
• High-qualityclients driving contractual revenue growth

See slide 27 for footnotes.

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R E A L E S T A T E I N V E S T M E N T S

$ in millions, totals may not sum due to rounding

Adjusted Revenue1

$215$212

$64$45

$33$54

$119$112

4Q18		4Q19
Investment Management		Development
Equity Income/Other

Adjusted EBITDA2

$52

$43

4Q184Q19

See slide 27 for footnotes.

DEVELOPMENT

Pipeline reflects integration of Telford and robust demand

($ in billions)							$18.8
							$12.7	$5.8
$9.4	$10.3	$10.8	$10.6
$3.7
$3.6	$4.2	$3.8
$4.0		$13.0
							$9.0
$5.4	$6.7	$6.6	$6.8
2014	2015	2016	2017	2018	2019
				In Process3		Pipeline4

INVESTMENT MANAGEMENT

Record capital raising helped drive new AUM record

($ billions)

$112.9

$104.5 $105.5 $107.2 $106.7 $106.2

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

FLEXIBLE-SPACE SOLUTIONS (HANA)

3 locations opened, pipeline reflects evolution to asset- light model

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2 0 2 0 O U T L O O K - R E V E N U E

EXPECTATIONS REFLECTS OUTLOOK MIDPOINTS

Part of Business	Fee Revenue Growth Expectation
Advisory	Mid-single-digit
Leasing	Mid-single-digit
Capital Markets	Mid-single-digit
GWS	Low double-digit

• Balances tough first half comparisons with actual 2020 performance year to date
• Reflects significant client, geographic and business line diversification embedded in revenue stream
• Expect strong renewal rate in-line with historical average within GWS segment ‒ Believe highly differentiated platform offers significant value to clients

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2 0 2 0 O U T L O O K - A D J U S T E D E B I T D A 1 , 2 A N D A D J U S T E D E P S 1 , 3

2020E REFLECTS OUTLOOK MIDPOINT

					Adjusted EPS					~$4.05-$4.25
											~12%
											growth
											at midpoint
		Expect 11th Consecutive Year of Double-Digit Adjusted EPS Growth
$0.39
2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020E

• Expect Adjusted EBITDA contribution from REI will increase significantly to around $250 million
• Anticipate solid consolidated Adjusted EBITDA growth along with expectations for below- the-line items to drive EPS growth of around 12% at the midpoint of our outlook

See slide 27 for footnotes.

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R E T A I N A M P L E I N V E S T M E N T C A P A C I T Y

2019 Capital Allocation

Leverage Trajectory

			Net Debt1 to TTM Adj. EBITDA2,3
	Repurchases4		1.7x
	16%
	Enablement
M&A5	Capex
12%		1.3x below prior cyclical peak
55%
	Other			0.4x
	Hana
	Capex
	Capex
	14%
	3%
		2007	2019

• Deployed nearly $930 million of capital during 2019, while reducing leverage and building further balance sheet capacity
• Simultaneously increased diversification of cash flow streams and exposure to less cyclical businesses
• Enhances our ability to strategically invest in the business while simultaneously returning cash to our shareholders

See slide 28 for footnotes.

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S U M M A R Y

• Remain committed to extending industry leadership position regarding financial and sustainability performance and transparency
• Finished 2019 strong with record property sales and second best quarter of leasing ever
• Macroeconomic fundamentals remains supportive of solid growth for our business in 2020
• Expect to generate 11th consecutive year of double-digit Adjusted EPS growth
• Increased financial resiliency and healthy balance sheet should enable continued strategic investments

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SUPPLEMENTAL SLIDES, GAAP RECONCILIATION TABLES AND FOOTNOTES

M A N D A T O R Y A M O R T I Z A T I O N A N D M A T U R I T Y S C H E D U L E

AS OF DECEMBER 31, 20191

($ in millions) 4,000

3,500

3,000 Available

Revolving

Credit

2,500 Facility

2,798

2,000

1,500

1,000
500	Cash2
901
									600
							449	300	425
0
Liquidity	2018	2019	2020	2021	2022	2023	2024	2025	2026
		Cash			USD Term Loan			Senior Notes - 5.25%
		Revolving Credit Facility		Euro Term Loan			Senior Notes - 4.875%

1. $2,800 million revolving credit facility matures in March 2024. As of December 31, 2019, there was no balance outstanding on this facility other than letters of credit totaling $2.0 million.
2. Excludes $70.5 million of cash in consolidated funds and other entities not available for company use.

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D E B T & L E V E R A G E

TOTALS MAY NOT ADD DUE TO ROUNDING

($ in millions)

Cash1

Revolving credit facility

Senior term loans2

Senior notes2

Other debt3,4

Total debt

Total net debt5

TTM Adjusted EBITDA6

Net debt to TTM Adjusted

EBITDA

December 31

2019	2018	2007
$ 901	$ 622	$ 343
-	-	227
745	751	1,787
1,017	1,015	-
6	4	22
$ 1,768	$ 1,770	$ 2,036
$ 867	$ 1,148	$ 1,693
$ 2,064	$ 1,905	$ 970
0.42x	0.60x	1.75x

1. Excludes $70.5 million and $155.2 million of cash in consolidated funds and other entities not available for company use at December 31, 2019 and 2018, respectively.
2. Outstanding amounts for 2019 and 2018 reflected net of unamortized debt issuance costs. In the third quarter of 2015, we early adopted ASU 2015-03, which required that debt issuance costs related to a recognized debt liability be presented as a direct deduction from the carrying amount of that debt liability. Amounts presented for 2007 reflect the accounting guidance applicable at that time (i.e. debt issuance costs were included in other assets and not reflected as a direct deduction from carrying amount debt liabilities).
3. Excludes $977.2 million, $1,328.8 million and $255.8 million of warehouse facilities for loans originated on behalf of the FHA and other government sponsored enterprises outstanding at December 31, 2019, 2018, and 2007, respectively, which are non-recourse to CBRE Group, Inc.
4. Excludes non-recourse notes payable on real estate, net of unamortized debt issuance costs, of $12.5 million, $6.3 million and $459.4 million at December, 2019, 2018 and 2007, respectively. As of December 31, 2007 also excludes a $42.6 million non-recourse revolving credit facility in our development services line of business.
5. Total net debt is calculated as total debt (excluding non-recourse debt) less cash available for company use, as disclosed above.
6. Adjusted EBITDA excludes the impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period, costs incurred related to legal entity restructuring, impact of a one-timenon-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, costs associated with our reorganization, including cost-savings initiatives, costs incurred in connection with a litigation settlement, integration and other costs related to acquisitions, merger-related charges, loss on trading securities acquired in the Trammell Crow Company acquisition and certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue.

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Q 4 2 0 1 9 B U S I N E S S L I N E R E V E N U E

TOTALS MAY NOT ADD DUE TO ROUNDING

($ in millions)

CONTRACTUAL REVENUE AND LEASING, WHICH IS LARGELY RECURRING OVER TIME1, IS 72% OF FEE REVENUE

				Contractual Revenue & Leasing
				Property &	Investment
		Global	Advisory	Management					Commercial
		Workplace	Project	(excl. Carried		Loan	Advisory	Advisory	Mortgage	Development	Carried
		Solutions	Management	Interest)	Valuation	Servicing	Leasing	Sales	Origination	Services	Interest	Total
Revenue
Q4 2019	$	4,057	$ 621	$ 102	$ 188	$ 54	$ 1,048	$ 753	$ 151	$ 135	$ 10	$ 7,119
Fee Revenue2
Q4 2019	$	877	$ 354	$ 102	$ 188	$ 54	$ 1,048	$ 753	$ 151	$ 135	$ 10	$ 3,672
% of Q4 2019			72% of total fee revenue
Total Fee	24%	10%	3%	5%	1%	29%	20%	4%	4%	<1%	100%

Revenue

Fee Revenue Growth Rate (Change Q4 2019-over-Q4 2018)

USD	▲ 13%	▲ 8%	▼(6%)	▲ 8%	▲ 6%	▼(7%)	▲ 21%	▼(15%)	▲
Local	▲ 14%	▲ 9%	▼(5%)	▲ 10%	▲ 6%	▼(6%)	▲ 22%	▼(15%)	▲
Currency

310%	▼(1%)	▲ 8%
310%	▼(1%)	▲ 9%

CBRE See slide 28 for footnotes.

4Q 2019 EARNINGS CONFERENCE CALL | CBRE GROUP, INC. | 18

F Y 2 0 1 9 B U S I N E S S L I N E R E V E N U E

TOTALS MAY NOT ADD DUE TO ROUNDING

($ in millions)

CONTRACTUAL REVENUE AND LEASING, WHICH IS LARGELY RECURRING OVER TIME1, IS 75% OF FEE REVENUE

Contractual Revenue & Leasing

			Property &	Investment
		Global	Advisory	Management					Commercial
		Workplace	Project	(excl. Carried		Loan	Advisory	Advisory	Mortgage	Development	Carried
		Solutions	Management	Interest)	Valuation	Servicing	Leasing	Sales	Origination	Services	Interest	Total
Revenue
FY 2019	$14,164	$ 2,255	$ 395	$ 630	$ 207	$ 3,270	$ 2,131	$ 576	$ 236	$ 30	$ 23,894
Fee Revenue2
FY 2019	$ 3,127	$1,259	$ 395	$ 630	$ 207	$ 3,270	$ 2,131	$ 576	$ 236	$ 30	$ 11,861
% of FY 2019		75% of total fee revenue
Total Fee	26%	11%	3%	5%	2%	28%	18%	5%	2%	<1%	100%

Revenue

Fee Revenue Growth Rate (Change FY 2019-over-FY 2018)

USD	▲ 14%	▲ 7%	▼(1%)	▲ 5%	▲ 13%	▲ 6%	▲ 8%	▲ 7%	▲
Local	▲ 17%	▲ 9%	▲ 2%	▲ 8%	▲ 13%	▲ 7%	▲ 9%	▲ 7%	▲
Currency

135% ▼(13%) ▲ 9%

135% ▼(13%) ▲ 11%

CBRE See slide 28 for footnotes.

4Q 2019 EARNINGS CONFERENCE CALL | CBRE GROUP, INC. | 19

S U M M A R I Z E D C A S H F L O W A C T I V I T Y

($ in millions)

Net cash flows from operating activities Net cash flows used in investing activities Net cash flows used in financing activities

Effect of FX rate changes on cash and cash equivalents and restricted cash

Net increase in cash and cash equivalents and restricted cash

Twelve Months Ended December

2019	2018
$ 1,223	$ 1,131
(721)	(561)
(272)	(507)
-	(24)
$ 230	$ 39

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O T H E R F I N A N C I A L M E T R I C S

($ in thousands)

OMSR Gains

Amortization

($ in thousands)

OMSR Gains

Amortization

($ in billions)

Loan Servicing Balance

Three Months Ended

December 31,	September 30,	June 30,	March 31,	December 31,	September 30,
2019	2019	2019	2019	2018	2018
40,301	59,562	44,309	38,270	56,760	45,623
(33,244)	(32,784)	(29,282)	(27,698)	(31,949)	(30,280)

Q4 2019 over	Q3 2019 over	Q2 2019 over	Q1 2019 over	Q4 2018 over	Q3 2018 over
Q4 2018	Q3 2018	Q2 2018	Q1 2018	Q4 2017	Q3 2017
(16,459)	13,939	5,072	6,153	7,674	10,175
(1,295)	(2,504)	(2,658)	(805)	(5,898)	(4,522)

As of

December 31,	September 30,	June 30,	March 31,	December 31,	September 30,
2019	2019	2019	2019	2018	2018
230.1	223.0	210.3	201.6	192.8	186.9

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N O N - G A A P F I N A N C I A L M E A S U R E S

The following measures are considered "non-GAAP financial measures" under SEC guidelines:

1. fee revenue
2. contractual fee revenue
3. adjusted revenue for the Real Estate Investments segment
4. net income attributable to CBRE Group, Inc., as adjusted (which we also refer to as "adjusted net income")
5. diluted income per share attributable to CBRE Group, Inc. shareholders, as adjusted (which we also refer to as "adjusted earnings per share" or "adjusted EPS")
6. Adjusted EBITDA and adjusted EBITDA on fee revenue margin

These measures are not recognized measurements under United States generally accepted accounting principles, or "GAAP." When analyzing our operating performance, investors should use them in addition to, and not as an alternative for, their most directly comparable financial measure calculated and presented in accordance with GAAP. Because not all companies use identical calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies.

Our management generally uses these non-GAAP financial measures to evaluate operating performance and for other discretionary purposes. The company believes that these measures provide a more complete understanding of ongoing operations, enhance comparability of current results to prior periods and may be useful for investors to analyze our financial performance because they eliminate the impact of selected charges that may obscure trends in the underlying performance of our business. The company further uses certain of these measures, and believes that they are useful to investors, for purposes described below.

With respect to fee revenue: the company believes that investors may find these measures useful to analyze the financial performance of our Global Workplace Solutions segment and Property & Advisory Project Management business line and our business generally. Fee revenue excludes costs reimbursable by clients, and as such provides greater visibility into the underlying performance of our business.

With respect to adjusted revenue: the company believes that investors may find this measure useful to analyze the financial performance of our Real Estate Investments segment because it is more reflective of this segment's total operations.

With respect to contractual fee revenue: the company believes that investors may find this measure useful to analyze our overall financial performance because it identifies revenue streams that are typically more stable over time.

With respect to adjusted net income, adjusted EPS, adjusted EBITDA and adjusted EBITDA on fee revenue margin: the company believes that investors may find these measures useful in evaluating our operating performance compared to that of other companies in our industry because their calculations generally eliminate the accounting effects of acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions-and in the case of adjusted EBITDA and adjusted EBITDA fee revenue margin-the effects of financings and income tax and the accounting effects of capital spending. All of these measures and adjusted revenue may vary for different companies for reasons unrelated to overall operating performance. In the case of adjusted EBITDA, this measure is not intended to be a measure of free cash flow for our management's discretionary use because they do not consider cash requirements such as tax and debt service payments. The adjusted EBITDA measures calculated herein may also differ from the amounts calculated under similarly titled definitions in our credit facilities and debt instruments, which amounts are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt and making certain restricted payments. The company also uses adjusted EBITDA and adjusted EPS as significant components when measuring our operating performance under our employee incentive compensation programs.

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R E C O N C I L I A T I O N O F A D J U S T E D E B I T D A T O N E T I N C O M E

($ in millions)

Net income attributable to CBRE Group, Inc.

Add:

Depreciation and amortization

Interest expense, net of interest income

Write-off of financing costs on extinguished debt

Provision for income taxes Intangible asset impairment

EBITDA Adjustments:

Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period

Costs incurred related to legal entity restructuring

One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired

Costs associated with our reorganization, including cost-savings initiatives

Costs incurred in connection with litigation settlement

Cost-elimination expenses

Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue2

Merger-related charges

Loss on trading securities acquired in the Trammell Crow Company Acquisition

Integration and other costs related to acquisitions

Write-down of impaired assets Adjusted EBITDA

Twelve Months Ended December 31,

	2019		2018		2017		2016		2015		2014		2013		20121	20111	20101	20091	20071
$	1,282.4	$	1,063.2	$	697.1	$	573.1	$	547.1	$	484.5	$	316.5	$	315.6	$	239.2	$	200.3	$	33.3	$	390.5
	439.2		452.0		406.1		366.9		314.1		265.1		191.3		170.9		116.9		109.0		99.5		113.7
	85.7		98.7		127.0		136.8		112.6		105.8		132.1		169.0		144.1		184.3		183.0		135.8
	2.6		28.0		-		-		2.7		23.1		56.3		-		-		18.2		29.3		-
	69.9		313.0		467.8		296.9		320.8		263.8		188.6		186.3		193.1		135.7		27.0		194.3
	89.8		-		-		-		-		-		98.1		19.8		-		-		-		-
$	1,969.6	$	1,954.9	$	1,698.0	$	1,373.7	$	1,297.3	$	1,142.3	$	982.9	$	861.6	$	693.3	$	647.5	$	372.1	$	834.3
	9.3		-		-		-		-		-		-		-		-		-		-		-
	6.9		-		-		-		-		-		-		-		-		-		-		-
	-		(100.4)		-		-		-		-		-		-		-		-		-		-
	49.6		38.0		-		-		-		-		-		-		-		-		-
	-		8.8		-		-		-		-		-		-		-		-		-
	-		-		-		78.4		40.4		-		17.6		17.6		31.1		15.3		43.6		-
	13.1		(5.2)		(8.5)		(15.5)		26.1		23.8		9.2		-		-		-		-		-
	-		-		-		-		-		-		-		-		-		-		-		56.9
	-		-		-		-		-		-		-		-		-		-		-		33.7
	15.3		9.1		27.3		125.7		48.9		-		12.6		39.2		68.8		7.2		5.6		45.2
	-		-		-		-		-		-		-		-		9.4		11.3		32.6		-
$	2,063.8	$	1,905.2	$	1,716.8	$	1,562.3	$	1,412.7	$	1,166.1	$	1,022.3	$	918.4	$	802.6	$	681.3	$	453.9	$	970.1

1. Includes an immaterial amount of activity from discontinued operations.
2. CBRE began adjusting carried interest compensation expense in Q2 2013 in order to better match the timing of this expense with associated carried interest revenue. This expense has only been adjusted for funds that incurred carried interest expense for the first time in Q2 2013 or in subsequent quarters.

Note: 2016 and 2017 figures were restated for our adoption of new revenue guidance in 2018 (ASC 606). We have not made a similar restatement for 2007-2015, and such periods continue to be reported under the accounting standards in effect for such periods. 2018 and 2019 figures reflect ASC 606.

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R E C O N C I L I A T I O N O F N E T I N C O M E T O A D J U S T E D N E T I N C O M E A N D A D J U S T E D E A R N I N G S P E R S H A R E

							Twelve Months Ended December 31,
($ in millions, except per share amounts)
2019		2018		2017		2016		2015		2014		20131		20121	20111	20101	20091
Net income attributable to CBRE Group, Inc.	$ 1,282.4	$	1,063.2	$	697.1	$	573.1	$	547.1	$	484.5	$	316.5	$	315.6	$ 239.2	$ 200.3	$ 33.3
Impact of fair value adjustments to real estate assets
acquired in the Telford Acquisition (purchase	9.3		-		-		-		-		-		-		-	-	-	-
accounting) that were sold in period

Costs incurred related to legal entity restructuring

One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the remaining controlling interest was acquired

Non-cash depreciation and amortization expense related to certain assets attributable to acquisitions

Write-off of financing costs on extinguished debt

Costs associated with our reorganization, including cost- savings initiatives

Costs incurred in connection with litigation settlement

Carried-interest incentive compensation expense (reversal) to align with the timing of associated revenue2

Integration and other costs related to acquisitions Cost-elimination expenses

Goodwill and other non-amortizable intangible asset impairment

Tax impact of adjusted items and tax benefit attributable to outside basis differences as a result of a legal entity restructuring

6.9	-	-	-	-	-	-	-	-	-	-
-	(100.4)	-	-	-	-	-	-	-	-	-
81.0	113.1	112.9	111.1	86.6	66.1	29.4	37.2	15.3	11.9	11.9
2.6	28.0	-	-	2.7	23.1	56.3	-	-	18.1	29.3
49.6	38.0	-	-	-	-	-	-	-	-	-
-	8.8	-	-	-	-	-	-	-	-	-
13.1	(5.2)	(8.5)	(15.6)	26.1	23.8	9.2	-	-	-	-
15.3	9.1	27.3	125.7	48.9	-	12.6	39.2	68.8	7.2	5.6
-	-	-	78.5	40.4	-	17.6	17.6	31.1	15.3	43.6
89.8	-	-	-	-	-	98.1	19.8
(287.0)	(44.2)	(42.1)	(93.2)	(62.6)	(36.4)	(65.4)	(30.0)	(29.3)	(24.3)	(46.5)

Write-down of impaired assets	-		-		-		-		-		-		-		-		9.4		11.3		32.6
Impact of U.S. tax reform	-		13.3		143.4		-		-		-		-		-
Adjusted net income	$ 1,263.0	$	1,123.7	$	930.1	$	779.6	$	689.2	$	561.1	$	474.3	$	399.4	$	334.5	$	239.8	$	109.8
Adjusted diluted earnings per share	$3.71	$	3.28	$	2.73	$	2.30	$	2.05	$	1.68	$	1.43	$	1.22	$	1.03	$	0.75	$	0.39
Weighted average shares outstanding for diluted income	340.5		343.1		340.8		338.4		336.4		334.2		331.8		327.0		323.7		319.0		280.0
per share (millions)

1. Includes an immaterial amount of activity from discontinued operations.
2. CBRE began adjusting carried interest compensation expense in Q2 2013 in order to better match the timing of this expense with associated carried interest revenue. This expense has only been adjusted

for funds that incurred carried interest expense for the first time in Q2 2013 or in subsequent quarters.

Note: 2016 and 2017 figures were restated for our adoption of new revenue guidance in 2018 (ASC 606). We have not made a similar restatement for 2009-2015, and such periods continue to be reported under the accounting standards in effect for such periods. 2018 and 2019 figures reflect ASC 606

CBRE	4Q 2019 EARNINGS CONFERENCE CALL | CBRE GROUP, INC. | 24

R E C O N C I L I A T I O N O F R E V E N U E T O F E E R E V E N U E A N D O F N E T I N C O M E T O A D J U S T E D N E T I N C O M E A N D A D J U S T E D E A R N I N G S P E R S H A R E

Three Months Ended December 31

20192018

Twelve Months Ended December 31

20192018

Global Workplace Solutions revenue	$	4,057.5	$	3,420.1		$	14,164.0	$	12,365.4
Less:
Client reimbursed costs largely associated with employees dedicated to client
facilities and subcontracted vendor work performed for clients		3,180.0		2,646.1			11,037.1		9,626.3
Global Workplace Solutions fee revenue	$	877.5	$	774.0		$	3,126.9	$	2,739.1
Property & Advisory Project Management revenue	$	620.7	$	572.1	$	2,255.4	$	2,057.4
Less:
Client reimbursed costs largely associated with employees dedicated to client
facilities and subcontracted vendor work performed for clients		267.3		243.7			996.2		876.2
Property & Advisory Project Management fee revenue	$	353.4	$	328.4		$	1,259.2	$	1,181.2

Three Months Ended December 31

20192018

Twelve Months Ended December 31

20192018

Consolidated revenue		$ 7,119.4	$	6,293.7		$	23,894.1	$	21,340.1
Less:
Client reimbursed costs largely associated with employees dedicated to client
facilities and subcontracted vendor work performed for clients		3447.2		2,989.7			12,033.2		10,502.6
Consolidated fee revenue	$	3,672.2	$	3,404.0		$	11,860.9	$	10,837.5
						Three Months Ended December 31,
($ in millions, except share and per share amounts)						2019		2018
Net income attributable to CBRE Group, Inc.			$		637.6	$	393.8
Non-cash depreciation and amortization expense related to						19.9		26.5
certain assets attributable to acquisitions
Impact of fair value adjustments to real estate assets acquired in the						9.3			-
Telford Acquisition (purchase accounting) that were sold in period
Costs incurred related to legal entity restructuring						6.9			-
Integration and other costs related to acquisitions						1.7		3.0
Carried interest incentive compensation expense (reversal) to align with the timing of associated revenue					0.8		(0.7)
Intangible asset impairment						0.8			-
Costs associated with our reorganization, including cost-savings initiatives 1						-		25.2
One-time gain associated with remeasuring an investment in
an unconsolidated subsidiary to fair value as of the date the						-		(7.8)
remaining controlling interest was acquired
Tax impact of adjusted items and tax benefit attributable to outside						(228.4)		(37.8)
basis differences recognized as a result of a legal entity restructuring
Impact of U.S. tax reform		$		-		12.8
Adjusted Net Income			448.6	$	415.0
Adjusted diluted earnings per share		$		1.32	$	1.21
Weighted average shares outstanding for diluted income per share (millions)						340.3		342.7
CBRE						4Q 2019 EARNINGS CONFERENCE CALL | CBRE GROUP, INC. | 25

1. Primarily represents severance costs related to headcount reductions in connection with our reorganization announced in the third quarter of 2018 that became effective January 1, 2019.

R E C O N C I L I A T I O N O F R E A L E S T A T E I N V E S T M E N T S R E V E N U E T O A D J U S T E D R E V E N U E A N D A D J U S T E D E B I T D A T O N E T I N C O M E

Three Months Ended December 31,

($ in millions), totals may not sum due to rounding		2019		2018
Real Estate Investments Revenue		$	246.6	$	151.5
Adjustments
Less: Cost of revenue				85.0		-
Add: Gain on disposition of real estate				0.6		2.3
Add: Equity income from unconsolidated subsidiaries				41.8		61.3
Less: Net income (loss) attributable to non-controlling interests				1.0		(0.3)
Add: Impact of fair value adjustments to real estate assets acquired in the	Telford
Acquisition (purchase accounting) that were sold in period				9.3		-
Net adjustments				(34.3)		63.9
Real Estate Investments Adjusted Revenue		$	212.3	$	215.4

		Three Months Ended December 31,
($ in millions), totals may not sum due to rounding	2019		2018
Net income attributable to CBRE Group, Inc.	$	637.6	$	393.8
Add:
Depreciation and amortization			115.4		116.9
Intangible asset impairment			0.8		-
Interest expense, net of interest income			18.1		22.6
Write-off of financing costs on extinguished debt			-		-
(Benefit of ) provision for income taxes			(100.0)		101.6
EBITDA		$	671.9	$	635.0
Adjustments:
Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were			9.3		-
sold in period)
Costs incurred related to legal entity restructuring			6.9		-
Costs associated with our reorganization, including cost-savings initiatives			-		25.2
Integration and other costs related to acquisitions			1.7		3.0
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue			0.8		(0.7)
One-time gain associated with remeasuring an investment in an unconsolidated subsidiary to fair value as of the date the			-		(7.8)
remaining controlling interest was acquired
Adjusted EBITDA		$	690.6	$	654.6

CBRE	4Q 2019 EARNINGS CONFERENCE CALL | CBRE GROUP, INC. | 26

F O O T N O T E S

Notes - Local currency percent changes versus prior year is a non-GAAP measure noted on slides 4, 18 and 19. These percent changes are calculated by comparing current year results at prior year exchange rates versus prior year results.

We have not reconciled the (non-GAAP) adjusted earnings per share guidance referenced in this presentation to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, carried interest incentive compensation and financing costs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

Slide 4

1. 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.
2. EBITDA represents earnings before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation, amortization and intangible asset impairments. Amounts shown for adjusted EBITDA further remove (from EBITDA) costs associated with our reorganization, including cost-savings initiatives, integration and other costs related to acquisitions, certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, the impact of fair value adjustments to real estate assets acquired in the Telford Acquisitions (purchase accounting) that were sold in period, costs incurred related to legal entity restructuring, the impact of a one-timenon-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 and costs incurred in connection with a litigation settlement.
3. All EPS information is based on diluted shares.
4. Adjusted EPS excludes depreciation and amortization expense related to certain assets attributable to acquisitions, costs associated with our reorganization, including cost-savings initiatives, integration and other costs related to acquisitions and certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, the impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period, costs incurred related to legal entity restructuring, the impact of a one-timenon-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 and costs incurred in connection with a litigation settlement, as well as adjusts the provision for income taxes for such charges. For the three and twelve months ended December 31, 2019, the tax benefit attributable to outside basis differences recognized as a result of a legal entity restructuring has also been excluded. Adjustments for the

three and twelve months ended December 31, 2018 also include an update to the provisional estimated impact of U.S. tax reform initially recorded in the fourth quarter of 2017. Slide 6,12

1. The Company adopted new revenue recognition guidance (ASC 606) in 2018. 2017 and 2016 figures were restated for this change. However, prior years were not. Accordingly, figures presented prior to 2016 reflect the revenue recognition standards in the effect at that time.
2. Adjusted EBITDA excludes the impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period, costs incurred related to legal entity restructuring, costs associated with our reorganization, including cost savings initiatives, integration and other costs related to acquisitions, the impact of a one-timenon-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, costs incurred in connection with a litigation settlement, carried interest incentive compensation expense (reversal) to align with timing of associated revenue, cost-elimination expenses and write-down of impaired assets
3. Adjusted EPS excludes the impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period, costs incurred related to legal entity restructuring, costs associated with our reorganization, including cost savings initiatives, integration and other costs related to acquisitions, the impact of a one-timenon-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, costs incurred in connection with a litigation settlement, carried interest incentive compensation expense (reversal) to align with timing of associated revenue, cost-elimination expenses, the write-down of impaired assets, non-cash depreciation and amortization related to certain assets attributable to acquisitions, write-off of

financing costs on extinguished debt and goodwill and intangible asset impairment, as well as adjusts the provision for income taxes for such charges. For the year ended December 31, 2019, the tax benefit attributable to outside basis differences recognized as a result of a legal entity restructuring has also been excluded. Adjustments for the years ended December 31, 2018 and 2017 also include removing the impact of U.S. tax reform.

Slide 8

1. 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.
2. Adjusted EBITDA excludes costs incurred related to legal entity restructuring, costs associated with our reorganization, including cost-savings initiatives, integration and other costs related to acquisitions and 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.

Slide 9

1. 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.
2. Adjusted EBITDA excludes integration and other costs related to acquisitions.

Slide 10

1. Adjusted revenue is revenue, less the direct cost of revenue, along with equity income from unconsolidated subsidiaries and gain on disposition of real estate, net of non-controlling interests. Adjusted revenue also removes the impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period. See slide 26 for computation.
2. Adjusted EBITDA excludes integration and other costs related to acquisitions, costs associated with our reorganization including cost saving initiatives, the impact of fair value adjustments to real estate acquired in the Telford Acquisition (purchase accounting( that were solid in period and certain carried interest incentive compensation expense to align with the timing of associated revenue.
3. In-Processfigures include Long-Term Operating Assets (LTOA) were zero for 2019 and $0.3 billion for 2018. LTOA are projects that have achieved a stabilized level of occupancy or have been held 18-24 months following shell completion or acquisition.
4. Pipeline deals are projects we are pursuing which we believe have a greater than 50% chance of closing or where land has been acquired and the projected construction start is more than 12 months out.

CBRE	4Q 2019 EARNINGS CONFERENCE CALL | CBRE GROUP, INC. | 27

F O O T N O T E S

Slide 13

1. Net debt is calculated as total debt (excluding non-recourse debt) less cash available for company use. See slide 17.
2. Adjusted EBITDA excludes the impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period, costs incurred related to legal entity restructuring, costs associated with our reorganization, including cost-savings initiatives, integration and other costs related to acquisitions, certain carried interest incentive compensation expense to align with the timing of associated revenue, merger-related charges and loss on trading securities acquired in the Trammell Crow Company Acquisition.
3. The Company adopted new revenue recognition guidance (ASC 606) in 2018. We have note made a similar restatement for 2009, and this period continues to be reported under the accounting standards in effect at that time.
4. Includes $145.0 million to repurchase an additional 3.1 million shares of common stock during 2019 at an average price of $47.83.
5. Includes $329.0 million payment for Telford Homes Plc acquisition which closed on October 1, 2019 as well as $110.7 million of net debt assumed through the acquisition and subsequently repaid.

Slide 18,19

1. Contractual revenue refers to revenue derived from our Global Workplace Solutions, Property & Advisory Project Management, Investment Management (excl. carried interest), Valuation and Loan Servicing businesses. We regard advisory leasing revenue as largely recurring over time because unlike most other transaction businesses, leasing activity normally takes place when leases expire. The average lease expires in five to six years. This means that, on average, in a typical year approximately 17% to 20% of leases roll over and a new leasing decision must be made. When a lease expires in the ordinary course, we expect it to be renewed, extended or the tenant to vacate the space to lease another space in the market. In each instance, a transaction is completed. If there is a downturn in economic activity, some tenants may seek a short term lease extension, often a year, before making a longer term commitment. In this scenario, that delayed leasing activity tends to be stacked on top of the normal activity in the following year. Thus, we characterize advisory leasing as largely recurring over time because we expect an expiration of a lease, in the ordinary course, to lead to an opportunity for a leasing commission from such completed transaction even if delayed by a year or two during an economic downturn.
2. 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.

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