February 23, 2021

Q4 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, financial performance expectations, including adjusted EPS, profitability and margins, and the effect of cost-saving initiatives. 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 and quarterly reports filed on Form 10-K and Form 10-Q, respectively, 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.

CONFERENCE CALL PARTICIPANTS

Bob Sulentic

President and Chief Executive Officer

Leah Stearns

Chief Financial Officer

Kristyn Farahmand

Vice President, Investor Relations & Corporate Finance

CONSOLIDATED RESULTS SUMMARY

$ IN MILLIONS EXCEPT PER SHARE FIGURES

4Q20

4Q19

USDLocal Currency1

2020

2019

USDLocal Currency1

Revenue

Fee Revenue

Adjusted EBITDA2

EPS2,3

Adjusted EPS2

$6,911 $3,413 $753 $0.93 $1.45

$7,119 $3,672

▼(3)%

▼(4)%

▼(7)%

▼(8)%

  • $691 ▲ 9%

  • $1.87 ▼(51)%

    ▲ 7% ▼(51)%

  • $1.32 ▲ 10%

▲ 8%

$23,826 $10,891 $1,892 $2.22 $3.27

$23,894 $11,861 $2,064 $3.77 $3.71

  • ▼(0)% ▼(0)%

  • ▼(8)% ▼(8)%

  • ▼(8)% ▼(9)%

  • ▼(41)% ▼(42)%

  • ▼(12)% ▼(13)%

  • • Fourth quarter results continued to be negatively impacted by COVID-19, while focus on efficiency helped drive sustained expense structure improvements

    - Incurred $120.5m in expenses related to transformation initiatives - Reduced EPS by $0.28, impact excluded from Adjusted EPS

  • • Strength in GWS and REI segments partially offset pressure on transactional revenues in Advisory

1.Local currency percent changes versus prior year are calculated by comparing current year results at prior year exchange rates versus prior year results.

2. Q4 2020 and FY 2020 results reflect $120.5 million and $175.8 million, respectively, of transformation initiative costs that were not incurred in the prior period. These costs have been excluded from adjusted EBITDA, adjusted net income and adjusted EPS.

3.GAAP EPS includes a negative impact of $0.28 from transformation initiative costs in Q4 2020 and a positive impact of $0.67 in Q4 2019 results primarily driven by tax benefits of a legal entity restructuring.

Definitions and reconciliations are provided at the end of this presentation.

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CBRE Group Inc. published this content on 23 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2021 12:01:04 UTC.