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| FOOTNOTES Slide 10 Normalized EBITDA excludes merger-related and other non-recurring charges, gains/losses trading securities acquired in the Trammell Crow Company acquisition, cost containment expenses, one-time IPO-related compensation expense, integration and other costs related to acquisitions, certain carried interest expense to better match with carried interest revenue realization and the write-down of impaired assets. Includes Insignia activity for the period July 23, 2003 through December 31, 2003. Includes Trammell Crow Company activity for the period December 20, 2006 through December 31, 2006. See discontinued operations below. See discontinued operations below. Includes CRES, ING REIM Asia and ING REIM Europe beginning July 1, October 3 and October 31, 2011, respectively. Slide 8 Includes Trammell Crow Company for the period December 20, 2006 through December 31, 2006. Other includes Development Services (1% in both 2006 and proforma 2013) and Other (1% in both 2006 and proforma 2013). Capital Markets includes Sales (31% in 2006 and 16% in proforma 2013) and Commercial Mortgage Services (3% in 2006 and 4% in proforma 2013). Contractual Revenues include GCS and Asset Services (14% in 2006 and 40% in proforma 2013; excludes associated sales and lease revenues, most of which are contractual), Global Investment Management (6% in 2006 and 7% in proforma 2013), and Appraisal & Valuation (7% in 2006 and 5% in proforma 2013). Includes $9.4 million of discontinued operations for the twelve months ended December 31, 2013 and $690 million of proforma revenue from Norland which was acquired December 23, 2013. Slide 14 Excludes global securities business. As of April 30, 2014. As of March 31, 2014. Includes CRES, ING REIM Asia and ING REIM Europe beginning July 1, October 3 and October 31, 2011, respectively. Discontinued Operations (Slides 10, 24 and 25) Under GAAP, the Company has historically classified most of its gains on dispositions of real estate as income from discontinued operations rather than as revenue and earnings from continuing operations. The Company’s Development Services segment, and occasionally its Global Investment Management segment, are engaged in developing and selling real estate projects in the normal course of business. Management believes that the characterization of these gains as income from discontinued operations may create the inaccurate impression that the Company is exiting this business. Effective January 1, 2014, CBRE adopted new GAAP accounting standards that no longer require us to report dispositions of real estate as income from discontinued operations. Revenue from discontinued operations which totaled: $1.3 million for the year ended December 31, 2008, $3.9 million for the year ended December 31, 2010, $6.7 million for the year ended December 31, 2011, $5.7 million for the year ended December 31, 2012, $9.4 million for the year ended December 31, 2013 and $5.4 million for the twelve months ended March 31, 2014. EBITDA related to discontinued operations which totaled: $16.9 million for the year ended December 31, 2008, $16.4 million for the year ended December 31, 2010, $14.1 million for the year ended December 31, 2011, $5.6 million for the year ended December 31, 2012, $7.9 million for the year ended December 31, 2013 and $3.5 million for the twelve months ended March 31, 2014. Slide 21 Includes $9.4 million of discontinued operations for the twelve months ended December 31, 2013 and $690 million of proforma revenue from Norland which was acquired December 23, 2013. |