Colliers International Group Inc. (NASDAQ:CIGI) Q1 2023 Earnings Conference Call May 2, 2023 11:00 AM ET Company Participants Jay Hennick - Global Chairman and Chief Executive Officer Christian Mayer - Chief Financial Officer Conference Call Participants Chandni Luthra - Goldman Sachs Michael Doumet - Scotia Bank Stephen MacLeod - BMO Capital Markets Daryl Young - TD Securities Stephen Sheldon - William Blair Frederic Bastien - Raymond James Operator Welcome to the Colliers International First Quarter Inves ...

First Quarter 2023 Financial Results M a y 2 , 2 0 2 3 Forward-Looking Statements This presentation does not constitute an offer to sell or a solicitation of an offer to purchase an interest in any fund. This presentation makes reference to certain non-GAAP measures, including local currency ("LC") revenue growth rate, internal revenue growth rate, Adjusted EBITDA ("AEBITDA"), Adjusted EPS ("AEPS") and assets under management ("AUM"). Please refer to Appendix for reconciliations to GAAP measures. Growth in ...

F e b r u a r y 9 , 2 0 2 3 This presentation includes or may include forward-looking statements. Forward- ook m d h Comp y' f performance outlook and statements regarding goals, beliefs, strategies, objectives, plans or current expectations. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward-looking statements. Such factors include: ec ...

Financial Data and Key Metrics Changes - Q4 revenues were $1.2 billion, down from $1.3 billion in the prior year period, with strong growth in recurring Outsourcing & Advisory and Investment Management service lines [14][96] - Adjusted EBITDA for Q4 was $203 million, up 6% from the previous year, with margins at 16.6%, an increase of 230 basis points [15] - Financial leverage ratio as of December 31 was 1.8x, expected to remain in the 1.8x to 2x range for the first half of 2023, declining to the 1.5x range in the second half [19] Business Line Data and Key Metrics Changes - Investment Management revenues for Q4 were $121 million, up 53%, with adjusted EBITDA of $53 million, an increase of 88% [97] - Americas Q4 revenues were $679 million, down 16%, with Outsourcing & Advisory up 9% and capital markets down 51% [25] - EMEA revenues were $228 million, up 8%, but adjusted EBITDA decreased to $36 million from $42 million due to service mix [17] Market Data and Key Metrics Changes - Fundraising across the platform totaled $8 billion for the full year 2022, with a strong fundraising pipeline expected to drive internal AUM growth of 10% to 15% in 2023 [18] - Asia-Pacific revenues were $194 million, down 3%, with capital markets impacted by interest rate volatility and COVID restrictions [26] Company Strategy and Development Direction - The company is focused on its Enterprise '25 growth strategy, aiming to double profitability and generate over 65% of earnings from high-value recurring revenues [7] - The company completed a record $1 billion in acquisitions in the previous year, strengthening its core and creating additional shareholder value [5] - The company expects capital markets activity to decline by 20% to 40% in the first half of 2023, with a return to growth in the second half [28] Management's Comments on Operating Environment and Future Outlook - Management noted significant pent-up demand for real estate assets, which is expected to translate into additional volumes as conditions stabilize [3] - The company anticipates disciplined cost control and careful management of discretionary expenses during the challenging operating environment [20] - Management expressed confidence in the stability of revenues from long-dated funds, which make up 85% of assets [6] Other Important Information - The company has a strong track record of delivering 20% annual growth in shareholder value over 28 years [13] - The company is actively looking for acquisition opportunities, particularly in the services sector, to augment operations globally [60] Q&A Session Summary Question: What is the outlook for capital markets activity? - Management indicated that capital markets activity has been challenged, with significant declines expected in the first half of 2023, but noted a pent-up demand for transactions [34][42] Question: How much of the 2023 revenue and earnings guidance is driven by acquired businesses? - Approximately $75 million of EBITDA is expected from the annualization of acquisitions completed in 2022, with a significant portion coming from Investment Management [84] Question: What are the expectations for margins in Investment Management? - Margins are expected to improve primarily from organic growth and operating leverage, with a target of reaching 45% in 2023 [78] Question: How is the company managing costs in the current environment? - The company is implementing disciplined cost management strategies, similar to those used during the pandemic, to maintain margins despite revenue declines [31] Question: What is the expected impact of financing costs on engineering and property management? - Management reported robust construction activity driven by infrastructure spending, indicating that financing costs have not significantly slowed growth in engineering [80]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of Colliers' financial performance for Q4 and full-year 2022, highlighting strategic achievements and business model evolution [Fourth Quarter 2022 Performance Overview](index=1&type=section&id=Fourth%20Quarter%202022%20Performance%20Overview) Colliers' Q4 2022 revenue decreased year-over-year, while Adjusted EBITDA and Adjusted EPS grew, driven by strong Investment Management and Outsourcing & Advisory, despite Capital Markets challenges 2022 Fourth Quarter Key Financial Data | Metric | Q4 2022 (Million USD) | Q4 2021 (Million USD) | YoY Change (US$) | YoY Change (Local Currency) | | :------------------- | :-------------------- | :-------------------- | :--------------- | :-------------------------- | | Revenue | 1,222.4 | 1,345.5 | -9% | -5% | | Adjusted EBITDA | 202.7 | 192.0 | 6% | 9% | | Adjusted EPS | 2.31 | 2.25 | 3% | | | GAAP Operating Earnings | 103.8 | 138.4 | -25% | | | GAAP Diluted EPS | 0.51 | 0.92 | -45% | | - Investment Management and Outsourcing & Advisory businesses achieved strong revenue growth, with Leasing revenue flat year-over-year[8](index=8&type=chunk) - Capital Markets business was impacted by interest rate volatility, debt availability challenges, and geopolitical issues, expected to persist into the first half of 2023[8](index=8&type=chunk) [Full Year 2022 Performance Overview](index=1&type=section&id=Full%20Year%202022%20Performance%20Overview) Colliers delivered strong full-year 2022 results with significant growth in revenue, Adjusted EBITDA, and Adjusted EPS, supported by high-value recurring revenue streams and strategic acquisitions 2022 Full Year Key Financial Data | Metric | FY 2022 (Million USD) | FY 2021 (Million USD) | YoY Change (US$) | YoY Change (Local Currency) | | :------------------- | :------------------ | :------------------ | :--------------- | :-------------------------- | | Revenue | 4,459.5 | 4,089.1 | 9% | 13% | | Adjusted EBITDA | 630.5 | 544.3 | 16% | 19% | | Adjusted EPS | 6.99 | 6.18 | 13% | | | GAAP Operating Earnings | 332.5 | (131.5)* | N/A | | | GAAP Diluted EPS | 1.05 | (9.09)* | N/A | | - A record **$1 billion in acquisitions** was completed in 2022, strengthening core businesses and creating additional shareholder value growth opportunities[36](index=36&type=chunk) - Investment Management's Assets Under Management (AUM) reached **$98 billion** at year-end, positioning Colliers as a global leader in the alternative private capital industry[36](index=36&type=chunk) [Strategic Highlights & Business Model](index=1&type=section&id=Strategic%20Highlights%20%26%20Business%20Model) Colliers is transforming into a diversified services company with a globally balanced and highly diversified business model driven by high-value recurring revenue streams - Recurring revenue currently accounts for **58% of pro forma Adjusted EBITDA**, progressing towards a target of **65% by the end of 2025**[3](index=3&type=chunk) - The company boasts a globally balanced and highly diversified business model with a proven track record of delivering approximately **20% compound annual growth** for shareholders over the past 28 years[3](index=3&type=chunk)[9](index=9&type=chunk)[36](index=36&type=chunk) [About Colliers](index=2&type=section&id=About%20Colliers) This section provides a brief overview of Colliers International Group Inc [Company Overview](index=2&type=section&id=Company%20Overview) Colliers is a leading diversified professional services and investment management company operating in 65 countries with 18,000 professionals dedicated to accelerating client, investor, and employee success - Colliers is a leading diversified professional services and investment management company, operating in **65 countries** with **18,000 professionals**[36](index=36&type=chunk) - The company generates **$4.5 billion in annual revenue** and manages **$98 billion in assets**[36](index=36&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) This section details Colliers' consolidated revenue performance across its service lines for both the fourth quarter and full year of 2022 [Consolidated Revenues by Line of Service](index=2&type=section&id=Consolidated%20Revenues%20by%20Line%20of%20Service) In Q4 2022, consolidated revenue decreased by 5% in local currency, primarily due to a decline in Capital Markets, offset by strong growth in Investment Management and Outsourcing & Advisory; full-year 2022 consolidated revenue grew 13% in local currency, driven by strong performance across Investment Management, Outsourcing & Advisory, and Leasing Consolidated Revenues by Line of Service (Q4 2022 vs Q4 2021) | Line of Service | Q4 2022 (Thousand USD) | Q4 2021 (Thousand USD) | USD Change % | Local Currency Change % | | :-------------------- | :--------------------- | :--------------------- | :----------- | :---------------------- | | Outsourcing & Advisory | 519,084 | 479,593 | 8% | 14% | | Investment Management | 121,307 | 79,511 | 53% | 53% | | Leasing | 335,724 | 336,876 | 0% | 3% | | Capital Markets | 246,290 | 449,485 | -45% | -43% | | **Total Revenues** | **1,222,405** | **1,345,465** | **-9%** | **-5%** | Consolidated Revenues by Line of Service (FY 2022 vs FY 2021) | Line of Service | FY 2022 (Thousand USD) | FY 2021 (Thousand USD) | USD Change % | Local Currency Change % | | :-------------------- | :----------------- | :----------------- | :----------- | :---------------------- | | Outsourcing & Advisory | 1,872,328 | 1,599,313 | 17% | 22% | | Investment Management | 378,881 | 252,890 | 50% | 50% | | Leasing | 1,124,106 | 1,000,683 | 12% | 16% | | Capital Markets | 1,084,172 | 1,236,243 | -12% | -9% | | **Total Revenues** | **4,459,487** | **4,089,129** | **9%** | **13%** | - Consolidated internal revenue decreased by **11% in local currency** year-over-year in Q4 2022, entirely due to reduced Capital Markets activity[11](index=11&type=chunk) [Segmented Financial Results](index=2&type=section&id=Segmented%20Financial%20Results) This section presents Colliers' financial performance broken down by geographic region and business segment for both the fourth quarter and full year of 2022 [Fourth Quarter 2022 Segmented Results](index=2&type=section&id=Fourth%20Quarter%202022%20Segmented%20Results) Q4 2022 saw varied performance across regions and business lines, with Americas revenue declining due to Capital Markets slowdown, EMEA and Asia Pacific also experiencing revenue drops, but EMEA's Outsourcing & Advisory growing in local currency, and Investment Management showing strong global growth [Americas Region](index=2&type=section&id=Americas%20Region_Q4) Americas Region Q4 2022 Performance | Metric | Q4 2022 (Thousand USD) | Q4 2021 (Thousand USD) | USD Change % | Local Currency Change % | | :------------- | :--------------------- | :--------------------- | :----------- | :---------------------- | | Revenue | 678,878 | 813,573 | -17% | -16% | | Adjusted EBITDA | 82,933 | 94,476 | -12% | -11% | - Revenue decline was primarily associated with the interest rate-driven slowdown in Capital Markets, while Outsourcing & Advisory revenue grew solidly, and Leasing revenue was flat year-over-year[38](index=38&type=chunk) - Adjusted EBITDA margin improved by **60 basis points**, benefiting from lower average commission rates, reduced incentive compensation, and discretionary cost reductions[38](index=38&type=chunk) [EMEA Region](index=2&type=section&id=EMEA%20Region_Q4) EMEA Region Q4 2022 Performance | Metric | Q4 2022 (Thousand USD) | Q4 2021 (Thousand USD) | USD Change % | Local Currency Change % | | :------------- | :--------------------- | :--------------------- | :----------- | :---------------------- | | Revenue | 228,346 | 233,116 | -2% | 8% | | Adjusted EBITDA | 35,920 | 42,367 | -15% | -9% | - Local currency revenue growth was driven by strong Outsourcing & Advisory activity, including recent acquisitions, offset by decreased Capital Markets activity due to interest rate volatility and geopolitical uncertainty[13](index=13&type=chunk) [Asia Pacific Region](index=3&type=section&id=Asia%20Pacific%20Region_Q4) Asia Pacific Region Q4 2022 Performance | Metric | Q4 2022 (Thousand USD) | Q4 2021 (Thousand USD) | USD Change % | Local Currency Change % | | :------------- | :--------------------- | :--------------------- | :----------- | :---------------------- | | Revenue | 193,631 | 219,089 | -12% | -3% | | Adjusted EBITDA | 34,253 | 38,391 | -11% | -2% | - Revenue was impacted by interest rate volatility and ongoing COVID-19 restrictions in several Asian markets, particularly China[14](index=14&type=chunk) [Investment Management](index=3&type=section&id=Investment%20Management_Q4) Investment Management Q4 2022 Performance | Metric | Q4 2022 (Thousand USD) | Q4 2021 (Thousand USD) | USD Change % | Local Currency Change % | | :------------- | :--------------------- | :--------------------- | :----------- | :---------------------- | | Revenue | 121,286 | 79,523 | 53% | 53% | | Adjusted EBITDA | 53,070 | 28,277 | 88% | 88% | | AUM | 97,700,000 | 51,000,000 | 92% | | - Revenue growth was primarily driven by acquisitions and increased management fees from higher Assets Under Management, with revenue excluding historical carried interest up **86%** (**87% in local currency**)[40](index=40&type=chunk) [Unallocated Global Corporate Costs](index=3&type=section&id=Unallocated%20Global%20Corporate%20Costs_Q4) Unallocated Global Corporate Costs (Adjusted EBITDA) | Metric | Q4 2022 (Thousand USD) | Q4 2021 (Thousand USD) | | :------------------------- | :--------------------- | :--------------------- | | Adjusted EBITDA Corporate Costs | (3,490) | (11,501) | - The decrease in costs was primarily attributable to lower performance-based compensation expenses in the current period[15](index=15&type=chunk) [Full Year 2022 Segmented Results](index=3&type=section&id=Full%20Year%202022%20Segmented%20Results) For full-year 2022, Americas and EMEA regions saw strong revenue growth in local currency, driven by Outsourcing & Advisory and Leasing, despite Capital Markets headwinds, while Asia Pacific revenue declined due to COVID-19 restrictions, and Investment Management achieved exceptional growth [Americas Region](index=3&type=section&id=Americas%20Region_FY) Americas Region FY 2022 Performance | Metric | FY 2022 (Thousand USD) | FY 2021 (Thousand USD) | USD Change % | Local Currency Change % | | :------------- | :----------------- | :----------------- | :----------- | :---------------------- | | Revenue | 2,756,345 | 2,489,217 | 11% | 11% | | Adjusted EBITDA | 332,347 | 296,133 | 12% | 13% | - Revenue growth was primarily driven by Outsourcing & Advisory, including Engineering & Design, and Leasing, benefiting from increased activity in office and industrial asset classes[16](index=16&type=chunk) - Capital Markets revenue was impacted by interest rate volatility and market uncertainty, leading to reduced sales brokerage and debt origination activity in the second half of the year[16](index=16&type=chunk) [EMEA Region](index=3&type=section&id=EMEA%20Region_FY) EMEA Region FY 2022 Performance | Metric | FY 2022 (Thousand USD) | FY 2021 (Thousand USD) | USD Change % | Local Currency Change % | | :------------- | :----------------- | :----------------- | :----------- | :---------------------- | | Revenue | 715,140 | 672,737 | 6% | 18% | | Adjusted EBITDA | 68,501 | 82,505 | -17% | -9% | - Revenue growth was driven by strong Outsourcing & Advisory and Leasing activity, while Capital Markets revenue was impacted by regional interest rate volatility and geopolitical uncertainty throughout the year[16](index=16&type=chunk) [Asia Pacific Region](index=3&type=section&id=Asia%20Pacific%20Region_FY) Asia Pacific Region FY 2022 Performance | Metric | FY 2022 (Thousand USD) | FY 2021 (Thousand USD) | USD Change % | Local Currency Change % | | :------------- | :----------------- | :----------------- | :----------- | :---------------------- | | Revenue | 608,460 | 673,661 | -10% | -3% | | Adjusted EBITDA | 85,092 | 95,238 | -11% | -3% | - Revenue was primarily impacted by ongoing COVID-19 restrictions in several Asian markets, particularly China, which persisted through most of the year[42](index=42&type=chunk) [Investment Management](index=3&type=section&id=Investment%20Management_FY) Investment Management FY 2022 Performance | Metric | FY 2022 (Thousand USD) | FY 2021 (Thousand USD) | USD Change % | Local Currency Change % | | :------------- | :----------------- | :----------------- | :----------- | :---------------------- | | Revenue | 378,881 | 252,890 | 50% | 50% | | Adjusted EBITDA | 145,955 | 95,122 | 53% | 54% | - Revenue was positively impacted by acquisitions and active fundraising across all investment strategies, leading to increased management fees[17](index=17&type=chunk) - Revenue, excluding historical carried interest, grew by **60%** (**61% in local currency**)[17](index=17&type=chunk) [Unallocated Global Corporate Costs](index=4&type=section&id=Unallocated%20Global%20Corporate%20Costs_FY) Unallocated Global Corporate Costs (Adjusted EBITDA) | Metric | FY 2022 (Thousand USD) | FY 2021 (Thousand USD) | | :------------------------- | :----------------- | :----------------- | | Adjusted EBITDA Corporate Costs | (1,370) | (24,660) | - The decrease in costs was primarily driven by lower performance-based compensation expenses[43](index=43&type=chunk) [Outlook for 2023](index=4&type=section&id=Outlook%20for%202023) This section outlines Colliers' financial expectations and strategic focus for the upcoming year [2023 Financial Outlook](index=4&type=section&id=2023%20Financial%20Outlook) Colliers anticipates strong growth in high-value recurring service lines (Investment Management and Outsourcing & Advisory) and stable Leasing revenue in 2023, with Capital Markets activity expected to remain volatile in H1 and moderate in H2, alongside an improved Adjusted EBITDA margin - Strong growth is anticipated in high-value recurring service lines (Investment Management and Outsourcing & Advisory), with Leasing revenue expected to remain stable[19](index=19&type=chunk) - Capital Markets activity is expected to continue to be impacted by interest rate-driven volatility and geopolitical tensions in the first half of 2023, moderating in the second half[19](index=19&type=chunk) - Adjusted EBITDA margin is projected to improve in 2023, primarily due to changes in business mix (increased Adjusted EBITDA contribution from higher-margin Investment Management) and company-wide cost control measures[19](index=19&type=chunk) 2023 Financial Outlook | Metric | 2022 | 2023 Outlook | | :------------ | :--------- | :------------------ | | Revenue | $4.5 billion | $4.6 billion - $4.8 billion | | Adjusted EBITDA | $630.5 million | $710 million - $750 million | | Adjusted EPS | $6.99 | $7.50 - $8.00 | [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations and definitions for Colliers' non-GAAP financial measures, including Adjusted EBITDA, Adjusted EPS, Free Cash Flow, and other key metrics [Adjusted EBITDA Reconciliation](index=5&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA is a non-GAAP measure used to assess the company's operating performance and debt servicing capacity, calculated by excluding non-operating or non-cash items such as income taxes, interest expense, depreciation, amortization, and acquisition-related items from net earnings - Adjusted EBITDA is defined as net earnings, adjusted to exclude income taxes, other expenses (income), interest expense, LTIA settlement, loss on disposition of businesses, depreciation and amortization, MSRs gain, acquisition-related items, restructuring costs, and stock-based compensation expense[50](index=50&type=chunk) Net Earnings to Adjusted EBITDA Reconciliation | (Thousand USD) | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | :------------------------------------------- | :------------- | :------------- | :--------- | :----------- | | Net earnings (loss) | $61,972 | $99,741 | $194,544 | $(237,557) | | Income taxes | 24,976 | 37,020 | 95,010 | 85,510 | | Other income, including equity earnings from non-consolidated investments | (2,329) | (5,726) | (5,645) | (11,273) | | Interest expense, net | 19,163 | 7,319 | 48,587 | 31,819 | | Operating earnings (loss) | 103,782 | 138,354 | 332,496 | (131,501) | | LTIA settlement | - | - | - | 471,928 | | Loss on disposition of businesses | (524) | - | 26,834 | - | | Depreciation and amortization | 51,542 | 38,155 | 177,421 | 145,094 | | MSRs gain (loss) | 6,829 | (8,486) | (17,385) | (29,214) | | Equity earnings from non-consolidated investments | 1,856 | 1,565 | 6,677 | 6,190 | | Acquisition-related items | 26,406 | 11,235 | 77,144 | 61,008 | | Restructuring costs | 5,023 | 5,018 | 5,485 | 6,484 | | Stock-based compensation expense | 7,772 | 6,169 | 21,853 | 14,349 | | **Adjusted EBITDA** | **$202,686** | **$192,010** | **$630,525** | **$544,338** | [Adjusted EPS Reconciliation](index=5&type=section&id=Adjusted%20EPS%20Reconciliation) Adjusted EPS is a non-GAAP measure calculated using the "if-converted" method for diluted net earnings per share, adjusted to exclude non-controlling interest redemption increment, LTIA settlement, loss on disposition of businesses, amortization of intangible assets, MSRs gain, acquisition-related items, restructuring costs, and stock-based compensation expense (all tax-affected), to provide a supplementary view of the company's underlying operating performance - Adjusted EPS is defined as diluted net earnings per share calculated using the "if-converted" method, adjusted to exclude non-controlling interest redemption increment, LTIA settlement, loss on disposition of businesses, amortization of intangible assets, MSRs gain, acquisition-related items, restructuring costs, and stock-based compensation expense (all tax-affected)[52](index=52&type=chunk) - The "if-converted" method is used to calculate earnings per share related to convertible notes if the assumed conversion is dilutive[26](index=26&type=chunk) Diluted Net Earnings to Adjusted EPS Reconciliation | (USD) | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | :------------------------------------------- | :------------- | :------------- | :------- | :------- | | Diluted net earnings (loss) per share | $0.48 | $0.89 | $0.97 | $(8.21) | | Convertible note interest, net of tax | 0.04 | 0.03 | 0.14 | 0.14 | | Non-controlling interest redemption increment | 0.49 | 0.74 | 1.97 | 2.09 | | LTIA settlement | - | - | - | 9.92 | | Loss on disposition of businesses | - | - | 0.56 | - | | Amortization expense, net of tax | 0.50 | 0.31 | 1.63 | 1.25 | | MSRs gain, net of tax | 0.08 | (0.10) | (0.20) | (0.34) | | Acquisition-related items | 0.51 | 0.18 | 1.45 | 0.93 | | Restructuring costs, net of tax | 0.08 | 0.07 | 0.08 | 0.10 | | Stock-based compensation expense, net of tax | 0.13 | 0.13 | 0.39 | 0.30 | | **Adjusted EPS** | **$2.31** | **$2.25** | **$6.99**| **$6.18**| [Free Cash Flow Reconciliation](index=7&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free Cash Flow is a non-GAAP measure used to evaluate the company's operating performance and its ability to service debt, fund acquisitions, and pay dividends to shareholders, calculated by adjusting net cash provided by operating activities - Free Cash Flow is defined as net cash provided by operating activities, plus contingent acquisition consideration paid, plus the cash portion of LTIA settlement, less purchases of property and equipment, plus cash receipts from AR facility deferred purchase price[28](index=28&type=chunk) Net Cash Provided by Operating Activities to Free Cash Flow Reconciliation | (Thousand USD) | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | :------------------------------------------- | :------------- | :------------- | :--------- | :----------- | | Net cash provided by operating activities | $238,501 | $77,908 | $67,031 | $288,980 | | Contingent acquisition consideration paid | 285 | 7,545 | 69,224 | 18,017 | | LTIA settlement (cash portion) | - | - | - | 96,186 | | Purchases of property and equipment | (25,874) | (13,501) | (67,681) | (57,951) | | Cash receipts from AR facility deferred purchase price | (57,052) | 116,907 | 288,004 | 151,202 | | **Free Cash Flow** | **$155,860** | **$188,859** | **$356,578** | **$496,434** | [Local Currency & Internal Growth Rate Definitions](index=7&type=section&id=Local%20Currency%20%26%20Internal%20Growth%20Rate%20Definitions) Local currency revenue and Adjusted EBITDA variance are calculated by translating current period results of non-US dollar operations at prior period exchange rates, while internal revenue growth rates exclude the impact of acquired entities to assess underlying performance - The percentage change in local currency revenue and Adjusted EBITDA variance is calculated by translating current period results of non-US dollar operations at prior period exchange rates[29](index=29&type=chunk) - The percentage change in internal revenue growth rate is calculated assuming no impact from acquired entities in both the current and prior periods[29](index=29&type=chunk) [Assets Under Management (AUM) Definition](index=7&type=section&id=Assets%20Under%20Management%20%28AUM%29%20Definition) Assets Under Management (AUM) measures the scale of the company's Investment Management business, defined as the total fair market value of operating assets and the estimated total cost of development assets for funds, partnerships, and accounts for which the company provides management and advisory services, including capital that these entities are entitled to call from investors - AUM is defined as the total fair market value of operating assets and the estimated total cost of development assets for funds, partnerships, and accounts for which the company provides management and advisory services, including capital that these funds, partnerships, and accounts are entitled to call from investors[56](index=56&type=chunk) [Adjusted EBITDA from Recurring Revenue Percentage Definition](index=7&type=section&id=Adjusted%20EBITDA%20from%20Recurring%20Revenue%20Percentage%20Definition) The Adjusted EBITDA from Recurring Revenue percentage is calculated on a trailing twelve-month basis, representing the proportion of Adjusted EBITDA derived from Outsourcing & Advisory and Investment Management service lines, which are considered medium to long-term sustainable revenue streams - The Adjusted EBITDA from Recurring Revenue percentage is calculated on a trailing twelve-month basis, representing the proportion of Adjusted EBITDA derived from Outsourcing & Advisory and Investment Management service lines[70](index=70&type=chunk) - These service lines represent medium to long-term sustainable revenue streams[70](index=70&type=chunk) [Condensed Consolidated Financial Statements](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Colliers' condensed consolidated financial statements, including statements of earnings (loss), balance sheets, and cash flows, for the periods ended December 31, 2022 and 2021 [Statements of Earnings (Loss)](index=8&type=section&id=Statements%20of%20Earnings%20%28Loss%29) The condensed consolidated statements of earnings (loss) show a decrease in net earnings for Q4 2022 compared to Q4 2021, but a significant improvement in full-year 2022 net earnings from a loss in 2021, primarily due to the absence of the 2021 Long-Term Incentive Arrangement (LTIA) settlement impact Condensed Consolidated Statements of Earnings (Loss) (Selected Items) | (Thousand USD) | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | :------------------------------------------- | :------------- | :------------- | :--------- | :----------- | | Revenues | $1,222,405 | $1,345,465 | $4,459,487 | $4,089,129 | | Operating earnings (loss) | 103,782 | 138,354 | 332,496 | (131,501) | | Net earnings (loss) | 61,972 | 99,741 | 194,544 | (237,557) | | Net earnings (loss) attributable to Colliers | $22,504 | $43,288 | $46,253 | $(390,338) | | Diluted earnings (loss) per share | $0.51 | $0.92 | $1.05 | $(9.09) | - GAAP operating loss and diluted loss per share in fiscal year 2021 were significantly impacted by a **$471.9 million settlement** of a Long-Term Incentive Arrangement (LTIA) with the company's Chairman and CEO[35](index=35&type=chunk)[58](index=58&type=chunk) [Balance Sheets](index=9&type=section&id=Balance%20Sheets) The condensed consolidated balance sheets indicate a significant increase in both total assets and total liabilities from December 31, 2021, to December 31, 2022, primarily driven by substantial growth in goodwill and intangible assets and long-term debt, reflecting the company's acquisition activities Condensed Consolidated Balance Sheets (Selected Items) | (Thousand USD) | December 31, 2022 | December 31, 2021 | | :--------------------------- | :---------------- | :---------------- | | Total assets | $5,098,177 | $3,873,730 | | Goodwill and intangible assets | 3,148,449 | 1,652,878 | | Total liabilities | 4,604,803 | 3,288,461 | | Long-term debt - non-current | 1,437,739 | 529,596 | | Shareholders' equity | 493,374 | 585,269 | | Total debt | 1,439,099 | 531,054 | | Net debt/pro forma Adjusted EBITDA ratio | 1.8 | 0.3 | - Restricted cash primarily includes cash set aside to satisfy legal or contractual requirements arising in the normal course of business[33](index=33&type=chunk) - Warehouse receivables represent mortgage receivables, the majority of which are offset by borrowings under warehouse credit facilities[33](index=33&type=chunk)[60](index=60&type=chunk) [Statements of Cash Flows](index=10&type=section&id=Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows show a decrease in net cash provided by operating activities in FY 2022 compared to 2021, a substantial increase in cash used in investing activities due to business acquisitions, and significant growth in cash provided by financing activities driven by increased long-term debt Condensed Consolidated Statements of Cash Flows (Selected Items) | (Thousand USD) | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 | | :------------------------------------------- | :------------- | :------------- | :--------- | :----------- | | Net cash provided by operating activities | $238,501 | $77,908 | $67,031 | $288,980 | | Net cash (used in) provided by investing activities | (469,398) | 10,575 | (872,844) | (49,414) | | Net cash provided by financing activities | 209,873 | 18,601 | 612,917 | 247,738 | | Acquisitions of businesses, net of cash acquired | (413,208) | (56,035) | (1,007,297)| (60,832) | | Increase in long-term debt, net | 254,000 | 157,060 | 929,041 | 72,063 | - Net cash provided by operating activities in fiscal year 2021 included a **$375,742 thousand cash portion** of the LTIA settlement[61](index=61&type=chunk) [Forward-Looking Statements & Risk Factors](index=4&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) This section outlines the forward-looking nature of certain statements in the report and details the various risks and uncertainties that could impact the company's actual results [Forward-Looking Statements and Risks](index=4&type=section&id=Forward-Looking%20Statements%20and%20Risks) This press release contains forward-looking statements regarding the company's future financial performance and expectations, which involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those anticipated - Forward-looking statements include the company's financial performance outlook and statements about objectives, beliefs, strategies, goals, plans, or current expectations[47](index=47&type=chunk) - These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements[47](index=47&type=chunk) - Risk factors include economic conditions, commercial real estate and real property values, competition, ability to attract and retain clients and employees, increased wage and benefit costs, impact of changes in interest rates, unexpected increases in operating costs, foreign exchange rate fluctuations, impact of pandemics, global climate change, political events, ability to make and integrate acquisitions, information technology strategies, and ability to comply with laws and regulations[47](index=47&type=chunk) - Colliers undertakes no obligation to publicly update or revise any forward-looking statements, except as required by applicable law[48](index=48&type=chunk) [Company Contacts](index=12&type=section&id=Company%20Contacts) This section provides contact information for key executives at Colliers International Group Inc [Contact Information](index=12&type=section&id=Contact%20Information) This section provides contact details for Colliers International Group Inc.'s Global Chairman & CEO and Global Chief Financial Officer - Global Chairman & Chief Executive Officer: Jay S Hennick[77](index=77&type=chunk) - Global Chief Financial Officer: Christian Mayer[65](index=65&type=chunk) - Contact Phone: **(416) 960-9500**[65](index=65&type=chunk)

[Interim Consolidated Financial Statements](index=1&type=section&id=Interim%20Consolidated%20Financial%20Statements) The interim consolidated financial statements provide a comprehensive overview of the company's earnings, financial position, cash flows, and detailed accounting notes for the period [Consolidated Statements of Earnings (Loss)](index=2&type=section&id=Consolidated%20Statements%20of%20Earnings%20%28Loss%29) Q3 2022 revenues rose to $1.11 billion, with net earnings attributable to the company at $12.0 million; nine-month revenues reached $3.24 billion, with net earnings of $23.7 million Consolidated Earnings Summary (Q3 & Nine Months Ended Sep 30) | Indicator (in thousands USD) | Q3 2022 | Q3 2021 | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $1,108,324 | $1,022,756 | $3,237,082 | $2,743,664 | | **Operating Earnings (Loss)** | $84,030 | $75,966 | $228,714 | $(269,855) | | **Net Earnings (Loss)** | $44,524 | $50,496 | $132,572 | $(337,298) | | **Net Earnings (Loss) Attributable to Company** | $12,028 | $18,004 | $23,749 | $(433,626) | | **Diluted EPS (in USD)** | $0.27 | $0.40 | $0.54 | $(10.19) | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $4.56 billion as of September 30, 2022, driven by goodwill and intangibles; total liabilities rose to $3.21 billion, while shareholders' equity decreased to $477.1 million Consolidated Balance Sheet Highlights (in thousands USD) | Account | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $1,368,218 | $1,571,007 | | **Goodwill** | $1,600,724 | $1,091,048 | | **Intangible Assets** | $891,464 | $561,830 | | **Total Assets** | **$4,561,649** | **$3,873,730** | | **Total Current Liabilities** | $1,325,817 | $1,537,255 | | **Long-term Debt** | $1,149,483 | $529,596 | | **Total Liabilities** | $3,210,943 | $2,751,558 | | **Total Company Shareholders' Equity** | $477,061 | $581,599 | | **Total Liabilities and Shareholders' Equity** | **$4,561,649** | **$3,873,730** | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Nine-month operating activities used $171.5 million cash, a shift from prior year's inflow; investing activities used $403.4 million due to acquisitions, while financing provided $403.0 million, leading to a $209.8 million cash decrease Cash Flow Summary (Nine Months Ended Sep 30, in thousands USD) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $(171,470) | $211,072 | | **Net cash used in investing activities** | $(403,446) | $(59,989) | | **Net cash provided by (used in) financing activities** | $403,044 | $(144,182) | | **Effect of exchange rate changes on cash** | $(37,959) | $(4,963) | | **Net change in cash, cash equivalents and restricted cash** | $(209,831) | $1,938 | - Significant cash outflow for investing activities was driven by **$594.1 million** spent on acquisitions of businesses, net of cash acquired[11](index=11&type=chunk) - Financing activities were primarily characterized by a net increase in long-term debt, with **$990.1 million** in proceeds and **$315.1 million** in repayments[11](index=11&type=chunk) [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies and financial figures, including eight business acquisitions, the disposal of Russian operations, and changes to debt facilities [Note 4: Acquisitions](index=14&type=section&id=Note%204%3A%20Acquisitions) In the first nine months of 2022, the company acquired eight businesses, including Basalt Infrastructure Partners and Rockwood Capital, for a total consideration of $634.3 million, recognizing $577.9 million in goodwill - The company acquired eight businesses in the first nine months of 2022, including Basalt Infrastructure Partners (**75% interest**) and Rockwood Capital (**65% interest**)[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) Aggregate Acquisition Details (in thousands USD) | Item | Amount | | :--- | :--- | | Cash consideration, net of cash acquired | $594,089 | | Acquisition date fair value of contingent consideration | $40,176 | | **Total purchase consideration** | **$634,265** | | Goodwill recognized | $577,937 | [Note 5: Business disposals](index=15&type=section&id=Note%205%3A%20Business%20disposals) The company discontinued Russian operations and sold three smaller businesses, resulting in an aggregate loss of $27.4 million for the nine-month period - The company discontinued its Russian operations in March 2022 and sold three other minor operations, resulting in a total loss on disposal of **$27.4 million** for the nine-month period[33](index=33&type=chunk)[35](index=35&type=chunk) [Note 9: Long-term debt](index=18&type=section&id=Note%209%3A%20Long-term%20debt) The company amended its revolving credit facility to $1.5 billion, maturing May 2027, with $816.1 million available; it also holds outstanding senior unsecured notes totaling €335 million and $150 million - The company amended and extended its Revolving Credit Facility to **$1.5 billion**, maturing in May 2027. The interest rate margin can be adjusted based on sustainability metrics[50](index=50&type=chunk) - As of September 30, 2022, there was **$816.1 million** of available undrawn credit under the Revolving Credit Facility[50](index=50&type=chunk) [Note 15: Net earnings (loss) per common share](index=21&type=section&id=Note%2015%3A%20Net%20earnings%20%28loss%29%20per%20common%20share) This note details EPS calculations and the new NCIB, under which the company repurchased 1,087,839 shares for $134.5 million in 2022 - A new Normal Course Issuer Bid (NCIB) was approved in July 2022, allowing the repurchase of up to **3.5 million** Subordinate Voting Shares[75](index=75&type=chunk) - Between March and September 2022, the company repurchased a total of **1,087,839** Subordinate Voting Shares for a combined consideration of approximately **$134.5 million**[75](index=75&type=chunk)[76](index=76&type=chunk) [Note 21: Revenue](index=28&type=section&id=Note%2021%3A%20Revenue) Q3 2022 total revenue was $1.11 billion, with Americas as the largest segment and Capital Markets leading service lines; nine-month revenue reached $3.24 billion Disaggregated Revenue by Service (Q3 2022, in thousands USD) | Service Line | Revenue | | :--- | :--- | | Leasing | $273,714 | | Capital Markets | $275,706 | | E&D and Project management | $203,165 | | Property management | $121,080 | | Valuation and advisory | $113,010 | | IM - Advisory and other | $96,070 | | **Total Revenue** | **$1,108,324** | Disaggregated Revenue by Segment (Q3 2022, in thousands USD) | Segment | Revenue | | :--- | :--- | | Americas | $695,058 | | EMEA | $164,198 | | Asia Pacific | $152,845 | | Investment Management | $96,070 | | Corporate & Other | $153 | | **Total Revenue** | **$1,108,324** | [Note 22: Segmented information](index=30&type=section&id=Note%2022%3A%20Segmented%20information) Q3 2022 saw Americas lead in revenue ($695.1 million) and operating earnings ($59.9 million); Investment Management showed strong profitability, while EMEA reported a nine-month operating loss of $20.5 million Operating Earnings by Segment (Q3 2022, in thousands USD) | Segment | Revenues | Operating Earnings (Loss) | | :--- | :--- | :--- | | Americas | $695,058 | $59,945 | | EMEA | $164,198 | $6,098 | | Asia Pacific | $152,845 | $17,451 | | Investment Mgmt | $96,070 | $19,515 | | Corporate | $153 | $(18,979) | | **Consolidated** | **$1,108,324** | **$84,030** | [Note 23: Subsequent events](index=31&type=section&id=Note%23%3A%20Subsequent%20events) Subsequent to quarter-end, the company acquired Arcadia Management Group and Versus Capital for $13.1 million and $364.0 million respectively, repurchased shares, and expanded its AR Facility to $175 million - Completed the acquisition of **75%** of Versus Capital for an initial cash purchase price of **$364.0 million** on October 11, 2022[119](index=119&type=chunk) - Expanded the committed availability in its AR Facility from **$150 million** to **$175 million** on October 28, 2022[121](index=121&type=chunk) [Management's Discussion and Analysis (MD&A)](index=33&type=section&id=Management%27s%20Discussion%20and%20Analysis%20%28MD%26A%29) Management's discussion and analysis provides insights into the company's financial performance, operational results, future outlook, liquidity, and key risks [Consolidated Review](index=33&type=section&id=Consolidated%20Review) Q3 2022 consolidated revenues increased 8% to $1.11 billion, with Adjusted EPS up 11% to $1.41, driven by strategic acquisitions and growth in key service lines - Q3 2022 revenues were **$1.11 billion**, up **8%** (**12%** in local currency) YoY, with adjusted EPS of **$1.41**, up **11%**[126](index=126&type=chunk) - Key acquisitions in 2022 include Basalt Infrastructure Partners (infrastructure investment) and Rockwood Capital (US real estate investment)[128](index=128&type=chunk)[129](index=129&type=chunk) Revenue Growth by Service Line (Q3 2022 vs Q3 2021) | Service Line | Change in US$ % | Change in LC% | | :--- | :--- | :--- | | Outsourcing & Advisory | 18% | 24% | | Investment Management | 23% | 23% | | Leasing | 13% | 16% | | Capital Markets | -11% | -8% | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Q3 2022 revenue growth was 8% from acquisitions and 4% internal, with Adjusted EBITDA margin expanding to 13.1%; Investment Management AUM reached $86.2 billion, and nine-month revenues grew 18% - Q3 2022 Adjusted EBITDA was **$145.1 million**, up **17%** YoY, with the margin increasing to **13.1%** from **12.1%**[138](index=138&type=chunk) - Investment Management AUM grew **87%** YoY to **$86.2 billion** as of September 30, 2022, and reached **$92.2 billion** pro forma for the Versus Capital acquisition[146](index=146&type=chunk) - For the nine months ended Sep 30, 2022, revenues were **$3.24 billion**, up **18%** (**21%** in local currency), with internal growth of **15%**[148](index=148&type=chunk) [2022 Outlook](index=38&type=section&id=2022%20Outlook) The company adjusted its 2022 full-year outlook, forecasting AEBITDA margin expansion of 60-80 bps and mid-teens AEPS growth, with a consolidated income tax rate of 29%-31% Updated 2022 Full Year Outlook | Measure | Updated Outlook | Previous Outlook | | :--- | :--- | :--- | | Revenue growth | Low double digit | Low double digit | | AEBITDA Margin | Up 60 bps – 80 bps | Up 60 bps – 100 bps | | Consolidated income tax rate | 29%-31% | 27%-29% | | AEPS growth | Mid-teens | Low-twenties | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Net indebtedness was $961.7 million as of September 30, 2022, with a 1.5x leverage ratio; the company extended its $1.5 billion revolving credit facility and used significant cash for acquisitions and share repurchases - Net indebtedness was **$961.7 million** as of Sep 30, 2022, with a leverage ratio of **1.5x** pro forma Adjusted EBITDA[166](index=166&type=chunk) - The Revolving Credit Facility was increased to **$1.5 billion** and extended to May 2027, with **$816.1 million** of unused credit available[167](index=167&type=chunk) - Total outstanding contingent consideration for past acquisitions is estimated at a maximum of **$403.7 million**, with a fair value of **$73.9 million** recorded on the balance sheet[174](index=174&type=chunk) [Reconciliation of non-GAAP financial measures](index=42&type=section&id=Reconciliation%20of%20non-GAAP%20financial%20measures) This section reconciles GAAP to non-GAAP measures, showing Q3 2022 Net Earnings of $44.5 million reconciled to Adjusted EBITDA of $145.1 million and Diluted EPS of $0.25 to Adjusted EPS of $1.41 Reconciliation of Net Earnings to Adjusted EBITDA (in thousands USD) | Period | Net Earnings (Loss) | Adjusted EBITDA | | :--- | :--- | :--- | | **Q3 2022** | $44,524 | $145,065 | | **Q3 2021** | $50,496 | $123,641 | | **Nine Months 2022** | $132,572 | $427,839 | | **Nine Months 2021** | $(337,298) | $352,328 | Reconciliation of Diluted EPS to Adjusted EPS (in USD) | Period | Diluted Net EPS | Adjusted EPS | | :--- | :--- | :--- | | **Q3 2022** | $0.25 | $1.41 | | **Q3 2021** | $0.37 | $1.27 | | **Nine Months 2022** | $0.49 | $4.69 | | **Nine Months 2021** | $(9.20) | $3.91 | [Forward-looking statements and risks](index=47&type=section&id=Forward-looking%20statements%20and%20risks) The company faces risks from economic conditions, inflation, real estate market volatility, competition, and acquisition integration, alongside specific risks for Colliers Mortgage, interest rate changes, and cybersecurity threats - Key risks include economic conditions, rising inflation, real estate market volatility, competition, and integration of acquisitions[217](index=217&type=chunk) - Colliers Mortgage operations face unique risks, including changes in relationships with US government agencies (Fannie Mae, Ginnie Mae) and credit risk from borrower defaults on DUS Program loans[216](index=216&type=chunk) - Other significant risks mentioned are the effects of rising interest rates on borrowing costs, foreign exchange rate fluctuations, and cybersecurity threats[218](index=218&type=chunk)

Third Quarter 2022 Financial Results N o v e m b e r 1 , 2 0 2 2 Colliers 2 This presentation includes or may include forward-looking statements. Forward- ook m d h Comp y' f performance outlook and statements regarding goals, beliefs, strategies, objectives, plans or current expectations. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forw ...

Financial Data and Key Metrics Changes - For Q3 2022, revenues were $1.1 billion, up 12% in local currency, with adjusted EBITDA at $145 million, up 21%, and adjusted EPS at $1.42, up 11% compared to the prior period [7][17] - Year-to-date revenues reached $3.2 billion, up 21%, with adjusted EBITDA of $428 million, up 24%, and adjusted EPS at $4.69, up 20% versus the prior year [7][17] Business Line Data and Key Metrics Changes - Outsourcing & Advisory and Investment Management service lines saw strong growth, while Capital Markets activity softened due to higher interest rates and reduced availability of capital [5][17] - Investment Management revenues for Q3 were $96 million, up 23% from the prior year, with adjusted EBITDA for the quarter at $37 million, up 33% [21][22] Market Data and Key Metrics Changes - Americas revenues for Q3 were $695 million, up 13%, with Outsourcing & Advisory up 27% and Leasing activity up 21% [18] - EMEA revenues for Q3 were $164 million, up 23%, with strong growth particularly in the United Kingdom [19] - Asia Pacific revenues were $153 million, down 4%, impacted by higher interest rates and COVID-19 restrictions [20] Company Strategy and Development Direction - The company is focusing on diversifying its services and expanding its Investment Management business, which now represents about 30% of pro forma EBITDA [8][13] - Recent acquisitions, including PEAKURBAN and Pangea Property Partners, are aimed at enhancing engineering capabilities and strengthening market presence in key regions [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of rising interest rates and geopolitical uncertainties on Capital Markets but emphasized the resilience and diversification of the overall business model [5][14] - The outlook for the full year 2022 has been adjusted to reflect year-to-date results and anticipated challenges, with expected adjusted earnings per share growth now at a mid-teens percentage rate [26][27] Other Important Information - The company repurchased 373,000 shares for a total consideration of $35 million in the past month, with a year-to-date total of 1.4 million shares repurchased for $161 million [25] - Financial leverage ratio as of September 30, 2022, was 1.5 times, with expectations to deleverage over time using operating cash flow [24] Q&A Session Summary Question: Discussion on cost management in a tougher economic environment - Management indicated that the cost structure is highly variable, particularly in the transactional business, and there is no formal cost-cutting program currently planned [29][30] Question: Clarification on Q4 EBITDA growth attribution - Majority of Q4 EBITDA growth is expected to come from acquisitions, with strong organic growth anticipated in Outsourcing & Advisory [32][33] Question: Expected internal growth for Q4 - Management confirmed that the expected softness in internal growth is primarily from Capital Markets [37][38] Question: Insights on Americas margin and discretionary costs - Increased discretionary costs are attributed to resumed client engagement activities and higher commission splits due to strong performance earlier in the year [44][45] Question: Capital Markets activity trends - Management noted a significant gap between buyer and seller expectations due to current market conditions, impacting Capital Markets activity [52][58] Question: Investment Management capital raising and valuation risks - The company is optimistic about its capital raising pipeline, with defensive asset classes expected to maintain market values [62][64] Question: Future hiring and margin dynamics - Management acknowledged that recruiting new producers may initially impact margins but is considered a strategic investment for long-term growth [80]

Financial Data and Key Metrics Changes - The company reported Q2 revenues of $1.1 billion, up 23% year-over-year, with internal growth of 15% and the remainder from acquisitions [15] - Adjusted EBITDA for Q2 was $161 million, up 21% from the previous year, with margins at 14.3%, roughly flat compared to the prior-year quarter [15] - The financial leverage ratio as of June 30 was 1.4 times, expected to be 2 times including announced acquisitions, within the company's comfort zone [24] Business Line Data and Key Metrics Changes - Investment Management revenues for Q2 were $75 million, up 48% year-over-year, with adjusted EBITDA of $29 million, up 36% [20] - Americas revenues were $741 million, up 8%, with Outsourcing & Advisory growing 34% and Capital Markets activity up 28% [16] - EMEA revenues were $169 million, up 20%, but adjusted EBITDA decreased to $14 million due to geopolitical uncertainties [18] - Asia-Pacific revenues were $143 million, down 1%, impacted by COVID-19 lockdowns [19] Market Data and Key Metrics Changes - The company ended Q2 with $68.7 billion in assets under management (AUM), expected to rise to $87 billion with upcoming acquisitions [22] - New capital commitments from investors in the first half of the year were solid, although decision-making times have increased due to current market conditions [22] Company Strategy and Development Direction - The company aims to become a major player in the alternative private capital industry, with a focus on growing its Investment Management segment [7] - The strategy includes leveraging acquisitions to enhance service capabilities and expand into rapidly growing sectors like alternatives and infrastructure [12] - The company expects to invest over $1 billion in capital deployment for the first time in its history [12] Management's Comments on Operating Environment and Future Outlook - Management noted strong organic growth of approximately 20% year-to-date but expects a slowdown in the second half due to tough comparisons [30] - The company remains confident in meeting its fundraising objectives despite longer decision-making times from investors [22] - Management highlighted the importance of diversification across asset classes and global markets to mitigate risks [42] Other Important Information - The company completed two acquisitions during the quarter and announced a third, enhancing its capabilities in investment management and engineering [8][11] - The company renewed its revolving credit facility, increasing capacity to $1.5 billion and extending the term to 2027 [25] Q&A Session Summary Question: Outlook for transaction volumes in Q4 - Management indicated that while they had a strong first half, they expect organic growth to slow in the second half due to tough comparisons [30] Question: Fundraising objectives for the year - Management did not disclose specific numbers but mentioned multiple engines for fundraising across various platforms [33] Question: Performance of non-recurring revenue businesses - Management reported strong organic growth in capital markets and leasing, with expectations of tougher comparisons in the second half [36] Question: Impact of rising interest rates on transactions - Management confirmed that rising rates are impacting transaction velocities, requiring more cash for sales and putting downward pressure on pricing [45] Question: Margin expansion expectations - Management indicated that the majority of margin expansion would come from acquisitions, particularly in investment management businesses [47] Question: Overall exposure to office space - Management noted that office space performance varies significantly by region, with strong internal growth across most asset classes except traditional office [57] Question: Future acquisitions in investment management - Management expressed ongoing interest in acquiring businesses that align with their strategic goals, particularly in high-margin sectors [55]

Second Quarter 2022 Financial Results A u g u s t 3 , 2 0 2 2 Colliers 2 This presentation includes or may include forward-looking statements. Forward- ook m d h Comp y' f performance outlook and statements regarding goals, beliefs, strategies, objectives, plans or current expectations. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward ...