Slide 1: First Quarter 2012 Earnings Conference Call
CBRE Group, Inc. First Quarter 2012 Earnings Conference Call April 24, 2012
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, financial performance, business outlook and our ability to inte
Slide 3: Conference Call Participants
Conference Call Participants Brett White Chief Executive Officer Mike Lafitte President, The Americas Gil Borok Chief Financial Officer Nick Kormeluk Investor Relations
Slide 4: Business Overview Highlights
Business Overview Highlights: Total Company revenue increased 14% to $1.35 billion in Q1 2012 versus Q1 2011 The Americas paced the three regions with 13% revenue growth in Q1 2012 versus Q1 2011 Outsourcing revenue growth continued to be strong with a 10% overall increase in Q1 2012 In Q1 2012, Out
Slide 5: Q1 Notable Wins
Q1 CBRE Wins EMEA ASR Dutch Prime Retail Fund CBRE completed an oversubscribed first close of the fund. CBRE helped raise $486M (exceeding target of $384M), representing CBRE's largest equity placement and fund structuring to date in EMEA. CHINA Jiangsu Suning Real Estate Jiangsu Suning Real Estate
Slide 6: 2011 Americas Corporate Statistics
2011 Americas Corporate Statistics 1. Includes loan sale advisory 2. Reflects loans serviced by GEMSA, a joint venture between CBRE Capital Markets and GE Capital Real Estate 3. Includes affiliate offices 4. Includes $6.1 billion of projects that were in process as of December 31, 2011 Unique Breadt
Slide 7: 2011 Global Sales & Lease Activity
2011 Global Sales & Lease Activity Source: National Real Estate Investor, April 2012 $92.4 Billions CBRE Global CBRE Americas Top 10 Firms Excluding Networks
Slide 8: Americas Advisory Services
Americas Advisory Services Leasing Capital Markets Property Sales Commercial Mortgage Brokerage Major Q1 2012 Transactions 1,000,000 sq. ft. Atlanta, GA 139,000 sq. ft. New York 460,000 sq. ft. Ontario, Canada 101,000 sq. ft. Arlington, VA Major Q1 2012 Transactions Hess Tower $250 Million Acquisiti
Slide 9: Americas Outsourcing Services
Americas Outsourcing Services Top U.S. Clients 1. Revenue includes property management, facilities management and project management fees for Global Corporate Services and Asset Services. Does not include transaction revenue associated with outsourcing activities. Asset Services – Q1 2012 Global Cor
Slide 10: Q1 2012 Performance Overview
Q1 2012 Performance Overview Q1 2012 Q1 2011 Revenue1 $1,350.0 million $1,186.1 million Net Income2 GAAP $27.0 million Adjusted $45.9 million GAAP $34.4 million Adjusted $40.6 million EPS2,3 GAAP $0.08 Adjusted $0.14 GAAP $0.11 Adjusted $0.13 EBITDA4 $140.5 million $113.0 million Normalized EBITDA4,
Slide 11: Revenue Breakdown 1st Quarter 2012
Revenue Breakdown 1st Quarter 2012 Includes revenue from discontinued operations of $1.0 million for the three months ended March 31, 2011. 39% 27% 13% 9% 6% 4% 1% 1% Three months ended March 31, ($ in millions) 2012 20111 % Change Property & Facilities Management 526.0 478.3 10 Leasing 362.5 353.5
Slide 12: US Market Statistics
US Market Statistics Source: CBRE Econometric Advisors (EA) Outlooks 1Q 2012 preliminary. Starting in 2Q 2011 retail was expanded to include strip centers, neighborhood centers and community centers. US Vacancy US Absorption Trends (in millions of square feet) 1Q11 4Q11 1Q12 4Q12 F 4Q13F 2010 2011 2
Slide 13: Sales, Leasing and Outsourcing Revenue - Americas
Sales, Leasing and Outsourcing Revenue - Americas ($ in millions) Sales Leasing 33% 4% Outsourcing 11% 36% 6% 12% $1,441.6 $1,288.6 $1,243.4 $1,174.6 $93.8 $124.3 First Quarter 2010 2011 2012 $435.4 $592.3 Full Year $232.1 $241.5 $344.4 $382.4
Slide 14: Sales, Leasing and Outsourcing Revenue – EMEA
Sales, Leasing and Outsourcing Revenue – EMEA ($ in millions) Sales Leasing (9%) (6%) Outsourcing 6% 3% 17% 23% $71.8 $76.3 $30.3 $27.7 First Quarter $268.9 $332.0 $197.3 $202.4 Full Year 2010 2011 2012 $70.2 $65.7 $332.6 $388.0
Slide 15: Development Services Highlights
Development Services Highlights: $93.6 million of co-investments at the end of Q1 2012 $15.0 million in recourse debt to CBRE and repayment guarantees at the end of Q1 2012 1. In Process figures include Long-Term Operating Assets (LTOA) of $1.5 billion for both 1Q 12 and 4Q 11, $1.6 billion for 4Q 1
Slide 16: Global Investment Management
Global Investment Management ($ in billions) ($ in millions) CAGR 20% CAGR 26% Includes revenue from discontinued operations of $5.5 million for the twelve months ended December 31, 2011. Includes revenue from discontinued operations of $1.0 million for the three months ended March 31, 2011. Perform
Slide 17: Global Investment Management Pro-forma Normalized EBITDA
Global Investment Management Pro-forma Normalized EBITDA For the three months ended March 31, 2012 and 2011, the Company recorded net carried interest compensation expense pertaining to future periods of $0.1 million and $1.0 million, respectively. As of March 31, 2012, the Company maintained a cumu
Slide 18: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule $ millions $700.0 million revolver facility matures in May 2015. As of March 31, 2012, the outstanding revolver balance was $34.9 million. As of March 31, 2012 1 0.0 250.0 500.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Term Loan A Term Loan A - 1 Term
Slide 19: Capitalization
Capitalization Excludes $96.6 million and $208.1 million of cash in consolidated funds and other entities not available for Company use at March 31, 2012 and December 31, 2011, respectively. Increase was due to currency translation. Net of original issue discount of $10.6 million and $11.0 million a
Slide 20: Business Outlook
Business Outlook The cyclical recovery in commercial real estate continues to be incremental and uneven Outsourcing is likely to continue to pace our overall growth rate Leasing growth rates across the globe should continue to be modest Global investment sales will be highly dependent on regional ma
Slide 21: GAAP Reconciliation Tables
GAAP Reconciliation Tables CBRE
Slide 22: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Reconciliation of Normalized EBITDA to EBITDA to Net Income Includes EBITDA related to discontinued operations of $1.0 million for the three months ended March 31, 2011. Includes depreciation and amortization related to discontinued operations of $0.3 million for the three months ended March 31, 201
Slide 23: Reconciliation of Net Income to Net Income, As Adjusted
Reconciliation of Net Income to Net Income, As Adjusted ($ in millions, except for per share data) 2012 2011 Net income attributable to CBRE Group, Inc. 27.0 $ 34.4 $ Amortization expense related to ING and TCC incentive fees and customer relationships acquired, net of tax 11.4 1.7 Integration and o