Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Presentation (February 2010)
26 slides from Cbre's investor presentation, Feb 23, 2010
Slide 1: CB Richard Ellis Group, Inc. Investor Presentation February 2010
CB Richard Ellis Group, Inc. Investor Presentation February 2010
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our future growth momentum, operations and financial performance. These statements should be considered
Slide 3: 2009 Milestones
2009 Milestones # 8 outsourcing company across all industries and # 1 in commercial real estate # 1 brand for eight consecutive years First commercial real estate services company in the Fortune 500; one of the Most Admired Companies in the real estate industry Corporate Responsibility Officer magaz
Slide 4: Our Strategy
Our Strategy Provide a complete suite of market leading services to property owners and occupiers through a fully integrated global business platform and a managed account strategy
Slide 5: Geographic Diversification
Geographic Diversification #1 commercial real estate services firm in each of the major regions of the world 2009 Revenue Americas 62% Asia Pacific 13% EMEA 20% Global Investment Management 3% Development Services 2%
Slide 6: Revenue Diversification
Revenue Diversification 2009 Revenue 2006 Revenue1 Reflects Trammell Crow Company’s revenue contributions beginning on December 20, 2006. Contractual, fee-for-service, Property and Facilities Management revenue represented 39% of 2009 revenue, up from 14% in 2006 Appraisal & Valuation 7% Investment
Slide 7: Global Priorities for Growth
Remain the industry leader (by revenue) in the world’s top markets Grow and further globally integrate Asset Services Grow and further globally integrate Global Corporate Services Enhance and integrate our Global Investment Management business Continue to control costs and strengthen our balance she
Slide 8: Key Service Lines & Market Environment
Key Service Lines & Market Environment
Slide 9: Revenue Breakdown 4th Quarter 2009
Revenue Breakdown 4th Quarter 2009 Includes revenue from discontinued operations, which totaled $1.3 million for the twelve months ended December 31, 2008. 35% 33% 16% 7% 3% 2% 1% 3% ($ in millions) 2009 2008 % Change 2009 2008 1 % Change Leasing 455.8 443.6 3 1,348.2 1,710.7 -21 Property & Faciliti
Slide 10: Property and Facilities Management Revenue
Property and Facilities Management Revenue1 ($ in Millions) CAGR = 31% 2 Outsourcing Services Management fees include property management, facilities management and project management fees. Does not include transaction revenue associated with outsourcing activities. Includes Trammell Crow Company’s
Slide 11: #1 Provider of Every Outsourced Real Estate Service
#1 Provider of Every Outsourced Real Estate Service Clients Consulting Property/Facilities Management Project Management Transaction Management Global execution of transactions with a portfolio-wide focus Optimize portfolio Lease administration services Multiple-transaction focus Full service outsou
Slide 12: Leasing
Leasing Global Leasing Revenue ($ in Millions) Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. As of December 31, 2009. Does not include affiliate offices. 1 More than 4,7002 leasing professionals worldwide Tailored service delivery by proper
Slide 13: Leasing Market Outlook
Leasing Market Outlook forecast CBRE EA Office Rent Index; % change versus a year ago Office Vacancy rate; % U.S. Office Rent Forecast and Vacancy (15) (10) (5) 0 5 10 15 2000Q1 2000Q4 2001Q3 2002Q2 2003Q1 2003Q4 2004Q3 2005Q2 2006Q1 2006Q4 2007Q3 2008Q2 2009Q1 2009Q4 2010Q3 2011Q2 2012Q1 2012Q4 201
Slide 14: Sales
Sales Global Sales Revenue ($ in Millions) Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. As of December 31, 2009. Does not include affiliate offices. 1 Key Facts More than 1,3002 investment sales specialists worldwide Specialization across
Slide 15: Global Investment Market Conditions
Real Capital Analytics, December 2009 Global Investment Market Conditions Global Sales Volume by Region1 US$ Billion 0 20 40 60 80 100 120 140 160 Q1 '07 Q2 Q3 Q4 Q1 '08 Q2 Q3 Q4 Q1 '09 Q2 Q3 Q4 Americas EMEA Asic Pacific
Slide 16: Recovery & Restructuring Services Group
Recovery & Restructuring Services Group Distressed Deal Volume1 Source: RCA Troubled Assets Radar, January 2010 Our Process Single-point service offering leveraging CBRE’s advisory, analysis and execution expertise Integrated solutions for owners, creditors, debtors, etc. through every stage of the
Slide 17: Global Investment Management: CBRE Investors
Global Investment Management: CBRE Investors GIM Revenue ($ in Millions) CAGR =13% Assets Under Management ($ in Billions) CAGR =17% Key Facts1 $34.7 billion in assets under management $102.2 million co-investments As of December 31, 2009 53 55 46 68 116 141 127 15 39 53 58 143 20 14 28 102 89 2003
Slide 18: Global Investment Programs
Global Investment Programs Description Q4 2009 Statistics Typical Fee Structure Separate Accounts $16.2 billion of assets under management Management fees Transaction fees Incentive fees Sponsored Funds $13.3 billion of assets under management Management fees Transaction fees LP profits Carried Inte
Slide 19: Development Services: Trammell Crow Company
Development Services: Trammell Crow Company Development Revenue1 ($ in Millions) Includes Trammell Crow Company’s operations prior to the acquisition of Trammell Crow Company on December 20, 2006. Also includes revenue from discontinued operations. In Process figures contain Long-Term Operating Asse
Slide 20: Financial Performance
Financial Performance CBRE CB RICHARD ELLIS
Slide 21: Historical Normalized EBITDA
Historical Normalized EBITDA1 ($ in Millions) Normalized EBITDA excludes merger-related and other non-recurring costs, integration costs related to acquisitions, cost containment expenses, one-time IPO-related compensation expense, gains/losses on trading securities acquired in the Trammell Crow Com
Slide 22: Required Debt Amortization and Maturity Schedule
Required Debt Amortization and Maturity Schedule1 $ millions 1,054 91 240 25 295 450 Includes the impact of February 5, 2010 loan modification agreement. Approximately $225.2 million and $333.0 million of the revolver facilities mature in June 2011 and June 2013, respectively. As of 12/31/09, the ou
Slide 23: Capitalization
As of ($ in millions) 12/31/2009 12/31/2008 Variance Cash 741.6 158.8 582.8 Revolving credit facility 21.1 25.8 (4.7) Senior secured term loan A 326.3 827.0 (500.7) Senior secured term loan A-1 48.6 297.8 (249.2) Senior secured term loan A-2 203.2 - 203.2 Senior secured term loan A-3 167.5 - 167.5 S
Slide 24: Business Outlook
Business Outlook Summary: Increasing but still isolated signs of recovery Investment sales should show year over year growth in 2010 Leasing improvement may be too early to call a trend Outsourcing performance will likely remain impacted by low corporate spending and higher vacancy Global Investment
Slide 25: Appendix
Appendix CBRE CB RICHARD ELLIS
Slide 26: Normalized EBITDA Reconciliation
Year Ended December 31, ($ in millions) 2009 2008 2007 2006 2005 Normalized EBITDA $453.9 $601.2 $970.1 $652.5 $461.3 Less: Merger-related charges - - 56.9 - - Integration costs related to acquisitions 5.7 16.4 45.2 7.6 7.1 Loss (gain) on trading securities acquired in the Trammell Crow Company acqu
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