Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Day (May 2006)
16 slides from Cbre's investor day presentation, May 17, 2006
Slide 1: Business Review Day: Global Corporate Services
Business Review Day Global Corporate Services May 17, 2006 Steve Swerdlow President, Global Corporate Services Exhibit 99.9
Slide 2: 2005 Outsourcing % of Americas Revenue
5% 13% 30% 6% 46% CB Richard Ellis | Page 1 2005 Outsourcing % of Americas Revenue Outsourcing $268m US Brokerage Valuation Capital Markets Advisory Outsourcing Canada & Latin America
Slide 3: About Global Corporate Services (GCS)
GCS’ business: securing and expanding account relationships with the world’s largest corporate occupiers GCS’ objective: to form long-term, contractual relationships, each of which would drive substantial recurring revenues GCS’ business: securing and expanding account relationships with the world’s
Slide 4: GCS provides integrated real estate services to multinational corporations
Transaction Management Facilities Management Portfolio Management & Lease Administration Project Management Consulting Global coverage Proprietary portfolio management tools Industry-leading account management Largest base of transaction professionals with execution track record Leading real estate
Slide 5: GCS as Integrator – Account Management Model
BUSINESS UNITS “C” LEVEL EXECUTIVES SHARED SERVICES CORPORATE REAL ESTATE ORGANIZATION REAL ESTATE STRATEGY SERVICE DELIVERY TEAM Transaction Management Facilities Management Portfolio Management Project Management TECHNOLOGY & PROCESS PLATFORM Consulting GCS as Integrator – Account Management Model
Slide 6: Key Business Drivers
Key Business Drivers Centralization of the corporate real estate function Corporations seeking cost reductions through real estate outsourcing Corporations seeking to monetize owned real estate assets Continued real estate consolidation following corporate mergers
Slide 7: Centralization of the Corporate Real Estate Function
Corporate real estate reorganization reason (% of respondents) Source : Real Estate Executive Board research Clients seek GCS… dominant global footprint full spectrum of services account management model Key Business Drivers Corporate real estate reorganization reason (% of respondents) Source : Rea
Slide 8: Cost Reductions through Outsourcing
Key Business Drivers Real estate is among the top 3 expense categories for our clients 85% of companies indicate cutting costs is real estate’s top priority 25% increase in number of RFPs received in 2005 Cost Reductions through Outsourcing
Slide 9: Monetizing Owned Real Estate Assets
$3.6 trillion in commercial real estate assets owned by corporations Abundant capital and low interest rates producing high prices/valuations for corporate-owned real estate assets Sale-leasebacks and other structures allow corporate users to free up cash to reinvest in core business and maintain fl
Slide 10: Corporate Real Estate Consolidation
$2.9 trillion in global M&A volume in 2005 – up by 37% Real estate and facilities generally part of post- merger corporate consolidations Post-merger real estate consolidation fed all GCS service lines and are less fee sensitive 1. Dealogic Corporate Real Estate Consolidation Key Business Drivers
Slide 11: Strong, Diversified Client Base
2% 5% 7% 8% 8% 8% 11% 11% 22% Statistics – Strong, Diversified Client Base Diversified by industry 47% served in multiple global regions 64% purchase more than 1 service We have served >30% for at least 5 years 18% Financial Services Technology Transportation, Aerospace, & Automotive Telecommunicati
Slide 12: Select 2005 New Client Wins & Expansions
Statistics Select 2005 New Client Wins & Expansions
Slide 13: Recent Case Studies
Recent Case Studies The 750,000 sq. ft. building containing Boeing’s worldwide HQ; owned by state pension fund and not up for sale CBRE account team and local CBRE transaction professionals worked together to demonstrate value of $165 million off-market purchase Deal possible through deep CBRE local
Slide 14: Recent Case Studies
Recent Case Studies Business needs evolving from manufacturing to service base – requiring both flexibility and control of strategic facilities Performed $152 million sale/leaseback of 3.8 million sq. ft. (24 properties) in U.S./Canada ~90 days from initial offering to signed contract Deal and rapid
Slide 15: Recent Case Studies
Recent Case Studies Smaller corporate portfolio - ~2 million sq. ft. Engaged GCS to develop strategic plan for HQ and operations facility rationalization CBRE team executed six leases for ~650,000 sq. ft., managed construction and moves ~$150 million real estate commitment over duration; one of the
Slide 16: 2006 Strategic Initiatives
2006 Strategic Initiatives Focus business development on clients with multi- national portfolios Pursue middle-market opportunities Differentiate through new, proprietary service offerings – CBRE Project Advantage, Client Dashboard, PortfolioIQ™, MarketStrike