Colliers International Group Inc. Investor Presentation March 2018
Basis of Presentation All amounts in millions of US Dollars unless otherwise noted. Adjusted EBITDA ( AEBITDA ) and Adjusted EPS ( AEPS ) are non-gaap measures. For reconciliations to the most directly comparable GAAP measures see Appendix. Forward-Looking Statements Certain statements included herein constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, which will, among other things, impact demand for the Company s services, service industry conditions and capacity; the ability of the Company to implement its business strategy, including the Company s ability to acquire suitable acquisition candidates on acceptable terms and successfully integrate newly acquired businesses with its existing businesses; changes in or the failure to comply with government regulations (especially safety and environmental laws and regulations); and other factors which are described in the Company s filings with the Canadian securities regulators and the U.S. Securities and Exchange Commission. 2
Colliers International Group Inc. Global leader in commercial real estate services Top-tier global brand and platform with full range of services 12,000+ employees 35 countries (1) $102 billion in transaction value 2 billion square feet managed (1) 69 countries including affiliates 3
Colliers International Group Inc. Global leader in commercial real estate services Entrepreneurial culture, partnership philosophy, significant insider ownership (+25%) Experienced team, record of creating value (20% CAGR over 23 years 1 ) Massive industry with compelling growth prospects Asset light model, strong balance sheet and cash flow, modest CapEx (1) Assuming investment in FirstService (1995) reinvested into Colliers upon spin-off (2015) 4
Colliers International Group Inc. Diversified by service and geography REVENUE BY SERVICE (1) REVENUE BY GEOGRAPHY (1) 33% 35% 19% 23% 58% 32% Outsourcing & Advisory Sales Brokerage Lease Brokerage Americas EMEA Asia Pacific (1) Year ended December 31, 2017 5
An Overnight Success Story A century in the making Macaulay Nicolls founded in Vancouver, Canada 1898 OVERVIEW Expands to US, Asia, Europe and LATAM 1984-90 FirstService acquires largest Colliers operations and begins consolidation 2004 Acquires Colliers UK and Germany 2012-13 Colliers completes spin-off from FirstService 2015 Colliers establishes company owned operations in Japan and Finland 2017-18 Colliers established in Australia 1976 Gains control of Colliers brand 2010 Colliers France established 2014 Revenues in the Americas region exceed $1 billion 2016 (1) TSX & NASDAQ - CIGI Since 2004 revenues up 8x, EBITDA up 13x 6
Transaction Services Sales and lease brokerage 65% of revenue (vs. 85% in 2004) 3,900+ professionals Diversified by asset class and markets Leverage global platform REVENUE BY ASSET CLASS (1) REVENUE BY REGION (1) 13% 20% 16% 50% 17% 63% 21% Office Industrial Retail and Multi-family Other (1) Year ended December 31, 2017 Americas EMEA Asia Pacific 7
Recurring Services Outsourcing & advisory services 35% of revenue (vs. 15% in 2004) Manage portfolios and projects 2 billion square feet under management Leverage global platform REVENUE BY SERVICE (1) REVENUE BY REGION (1) 20% 35% 36% 47% 29% 33% Valuation & Advisory, Property Marketing and Research Property & Asset Mgmt Project Mgmt & Workplace Solutions (1) Year ended December 31, 2017 Americas EMEA Asia Pacific 8
5-year plan to double size of company Lead in major markets Grow internally and acquire 6 1 2 Enhance productivity Deliver memorable service 5 4 3 Innovate Be experts 9
Compelling Growth Prospects Fragmented and consolidating global industry OVERVIEW $200B+ Market and Growing Top 5 Firms (1) Less than 20% market share Unlimited growth opportunities More sophisticated clients need multiple services across multiple markets Few firms have global brand, platform and capital base to deliver Colliers unique culture, clear plan and proven track record, positions it well for the future (1) Colliers, CBRE, JLL, C&W and Savills 10
13 Year Record of Successful Growth Fastest growing public CRE services company $2,275 OVERVIEW $250 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 The Colliers Way Proven track record of growth 1/3 organic, 2/3 acquired revenue growth Unique culture, partnership philosophy Invested $1+ billion Proven ability to target, acquire and integrate 70 acquisitions globally Target 15%+ ROIC Focus on strategic opportunities 1111
Acquisitions Since Spin-off Total investment of $300 million Americas Serten Advisors (D.C.) Oct 2017 OVERVIEW Welsh Companies (Minnesota) Apr 2017 Colliers Holland Michigan Mar 2017 Colliers Parrish Jan 2017 Colliers Long Island (NY) Jul 2016 Colliers West Michigan Jul 2016 Gorton & Partners May 2016 Colliers Northeast Florida May 2016 Groupe Immobilier Jan 2016 Colliers Central Florida Jan 2016 NAI Norris, Beggs & Simpson Dec 2015 Summit Realty Group Dec 2015 Colliers Atlanta Nov 2015 Gateway Commercial Sep 2015 Pointe Group Advisors Aug 2015 EMEA IREA (Spain) Feb 2018 Ovenia Group (Finland) Jan 2018 Colliers Denmark Jan 2017 Vision Asset Management Jan 2017 Bollingbrook Limited Oct 2016 ICADE Asset Management Sep 2016 WPM Groep NV Feb 2016 Hatton Real Estate Limited Jan 2016 Lance Aug 2015 IBD Management Jul 2015 APAC SIP Group Mar 2018 NixAnderson Sep 2017 12
Financial Overview 13
Long-Term Diversification Trend Expansion of recurring services and markets Growing Recurring Revenues 15% 2004 Sales and Lease Brokerage Outsourcing and Advisory Services 35% 2017 65% 85% Greater Geographic Diversification 36% 2004 64% Americas Rest of World 42% 2017 58% 14
Strong Record of Performance Revenue and AEBITDA growth Revenue OVERVIEW $1,159 $1,307 $1,582 $1,722 $1,897 $2,275 The fastest growing public commercial real estate services company Established track record of growth Internal growth 6% CAGR 2012 2013 2014 2015 2016 2017 Adjusted EBITDA $80 $105 6.9% 8.0% $147 9.3% $242 $203 $181 10.5% 10.7% 10.6% 370bps margin improvement since 2012 Operating leverage from scale and acquisitions 2012 2013 2014 2015 2016 2017 15
Strong Record of Performance Significant AEPS growth with modest CapEx Adjusted Earnings Per Share OVERVIEW $1.83 $2.29 $2.44 $3.11 5 year record of AEPS growth $0.61 $1.10 Enhanced operating leverage 2012 2013 2014 2015 2016 2017 Capital Expenditures $39.5 $30.1 $26.0 $22.5 $25.0 $18.1 2012 2013 2014 2015 2016 2017 Disciplined approach Impacted by timing of major market office expansions Average CapEx spend at approximately 17% of adjusted EBITDA 16
Looking Ahead Our Plan Enterprise 2020 Revenues OVERVIEW $3.4B AEBITDA $390M AEPS >$5.00 $1.7B 15% CAGR 17% $181M $2.29 CAGR 17% CAGR 2015 2020 2015 2020 2015 2020 On track to meet Enterprise 2020 Goals Revenue growth plan 5% internal and 10% from acquisitions 17
Fourth Quarter Q4 2017 Operating Results (US$ millions, except AEPS) Q4 2017 Q4 2016 Adjusted Adjusted Revenue EBITDA Revenue EBITDA Growth (1) Americas 402.8 40.0 291.3 34.1 37% EMEA 183.8 37.2 152.2 34.9 15% Asia Pacific 147.0 28.7 132.2 24.5 9% Corporate 0.6 (4.8) 0.3 (3.1) NM Consolidated 734.2 101.1 576.0 90.4 25% Adjusted EPS 1.41 1.22 16% Commentary Consolidated Strong fourth quarter results. Revenue up 27% (25% in LC), with 13% internal growth; Adjusted EBITDA was $101.1 million, up 12% (10% in LC). Adjusted EPS was $1.41, a 16% increase versus the prior year quarter. Americas 38% revenue growth (37% on a local currency basis), driven by acquisitions. Internal revenue growth was 16% relative to prior year. Internal growth was driven by Lease Brokerage, with several significant office leasing transactions in major markets. Adjusted EBITDA was $40.0 million, up 17% versus the prior year quarter. EMEA Revenues up 21% (15% on a local currency basis). Revenue growth comprised of 11% growth from internal revenues relative to the prior year. Internal revenues benefited from a rebound in Sales Brokerage activity in the UK, relative to unusually low activity levels in the prior year period in the aftermath of the June 2016 Brexit vote. Adjusted EBITDA was $37.2 million, up 7% versus the prior year quarter. Asia Pacific 11% growth (9% on a local currency basis), with 8% from internal growth, driven by Lease Brokerage activity in Hong Kong and China as well as strong Outsourcing & Advisory throughout the region. Adjusted EBITDA was $28.7 million, up from $24.5 million in the year ago period. (1) Revenue growth shown on a local currency ( LC ) basis. AEPS growth shown on a reporting currency ( RC ) basis. 18
Full Year 2017 Operating Results (US$ millions, except AEPS) Commentary 2017 2016 Adjusted Adjusted Revenue EBITDA Revenue EBITDA Growth (1) Americas 1,310.6 122.5 1,021.3 106.7 28% EMEA 521.3 69.4 474.9 55.9 9% Asia Pacific 441.5 62.0 399.4 51.4 9% Corporate 2.0 (11.6) 1.2 (11.0) NM Consolidated 2,275.4 242.3 1,896.7 203.1 19% Adjusted EPS 3.11 2.44 27% Consolidated Strong full year results. Revenue up 20% (19% in LC), with 7% internal growth; Adjusted EBITDA was $242.3 million, up 19% (18% in LC) over the comparable prior year period. Adjusted EPS was $3.11, relative to $2.44 in the prior year period, up 27%. Americas 28% revenue growth (28% on a local currency basis), 8% from internal growth and 20% from acquisitions in local currencies. Adjusted EBITDA was $122.5 million, up from $106.7 million in the prior year period. EMEA Revenues up 10% (up 9% on a local currency basis). LC growth comprised of 3% internal growth and 6% from acquisitions. Adjusted EBITDA was $69.4 million, up from $55.9 million in the prior year period, driven by operating leverage from higher revenues and revenue mix. Asia Pacific 10% revenue growth (9% on a local currency basis), with growth driven by internal gains in all three service lines. Adjusted EBITDA was $62.0 million versus $51.4 million in the prior year period. (1) Revenue growth shown on a local currency ( LC ) basis. AEPS growth shown on a reporting currency ( RC ) basis. 19
Capitalization & Capital Allocation Strong balance sheet Cash $ 108.5 $ 113.1 OVERVIEW Total Debt 249.9 262.5 Net Debt $ 141.4 $ 149.4 Redeemable non-controlling interests 145.5 134.8 Shareholders' equity 289.5 212.5 Total capitalization $ 576.3 $ 496.7 Net debt / pro forma adjusted EBITDA December 31, 2017 December 31, 2016 0.6 0.7 3 Months Ended December 31, 2017 December 31, 2016 Capital Expenditures $ 10.6 $ 8.8 Acquisition Spend (1) $ 6.4 $ 10.3 Highlights $700 million multi-currency credit facility maturing January 2022 Net debt / pro forma adjusted EBITDA leverage of 0.6 at December 31, 2017 Strong 2017 acquisition momentum continued subsequent to year-end with Finland acquisition Anticipated capital expenditures of $40-42 million in 2018 driven by investments in office space and IT systems/software 12 Months Ended December 31, 2017 December 31, 2016 Capital Expenditures $ 39.5 $ 25.0 Acquisition Spend (1) $ 104.3 $ 98.2 (1) Includes business acquisitions, contingent acquisition consideration and purchases of non-controlling interests in subsidiaries. 20
Colliers International Group Inc. Global leader in commercial real estate services Global brand & platform with full range of services 12,000+ professionals in 35 countries (1) Entrepreneurial culture, partnership philosophy, significant insider ownership (+20%) Experienced team, track record of creating value (20% CAGR over 23 years) Massive industry with compelling growth prospects Asset light model, strong balance sheet and cash flow, modest CapEx (1) 69 countries including affiliates 21
Appendix Reconciliation of net earnings to adjusted EBITDA OVERVIEW Three months ended Twelve months ended (US$ thousands) December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Net earnings $ 42,788 $ 50,320 $ 92,132 $ 91,571 Income tax 37,106 23,691 63,300 47,829 Other income, net 1,868 (233) (500) (2,417) Interest expense, net 2,188 2,277 11,895 9,190 Operating earnings 83,950 76,055 166,827 146,173 Depreciation and amortization 13,610 11,886 52,992 44,924 Acquisition-related items 1,260 1,162 14,927 3,559 Restructuring costs 1,300 547 3,104 5,127 Stock-based compensation expense 1,013 790 4,425 3,279 Adjusted EBITDA $ 101,133 $ 90,440 $ 242,275 $ 203,062 22
Appendix Reconciliation of net earnings and diluted net earnings per common share to adjusted net earnings and adjusted earnings per share OVERVIEW (US$ thousands) Three months ended Twelve months ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Net earnings $ 42,788 $ 50,320 $ 92,132 $ 91,571 Non-controlling interest share of earnings (7,772) (8,826) (20,236) (20,085) Income tax expense on enactment of US Tax Reform 13,325-13,325 - Amortization of intangible assets 6,511 5,674 26,658 21,293 Acquisition-related items 1,260 1,162 14,927 3,559 Restructuring costs 1,300 547 3,104 5,127 Stock-based compensation expense 1,013 790 4,425 3,279 Income tax on adjustments (2,298) (1,846) (8,820) (8,202) Non-controlling interest on adjustments (582) (514) (3,359) (1,846) Adjusted net earnings $ 55,545 $ 47,307 $ 122,156 $ 94,696 Three months ended Twelve months ended (US$) December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Diluted net earnings $ 0.86 $ 1.14 $ 1.25 $ 1.75 Non-controlling interest redemption increment 0.02 (0.07) 0.58 0.09 Income tax expense on enactment of US Tax Reform 0.34-0.34 - Amortization of intangible assets, net of tax 0.11 0.09 0.43 0.35 Acquisition-related items 0.03 0.03 0.34 0.08 Restructuring costs, net of tax 0.02 0.01 0.06 0.09 Stock-based compensation expense, net of tax 0.03 0.02 0.11 0.08 Adjusted EPS $ 1.41 $ 1.22 $ 3.11 $ 2.44 23