Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Presentation (September 2011)
27 slides from Cbre's investor presentation, Sep 6, 2011
Slide 1: CB Richard Ellis Group, Inc. Investor Presentation September 2011
CB Richard Ellis Group, Inc. Investor Presentation September 2011
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 ability to complete
Slide 3: Overview
Overview CBRE
Slide 4: The Global Market Leader
The Global Market Leader Includes affiliate offices. On a combined basis, assuming the acquisition of ING CRES which closed July 1, 2011 and ING’s Real Estate Investment Management business in Asia and Europe (ING REIM), which is expected to close in the second half of 2011. As of June 30, 2011. Bas
Slide 5: Our Objectives, Strategy and Vision
Our Objectives 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 Our Strategy Establish and maintain the leading position in every major world city. Establish and maintain the leadin
Slide 6: Diverse Client Base: 2010 Revenue by Client Type
Diversified revenue spread across broad base of clients Diverse Client Base 2010 Revenue by Client Type
Slide 7: Geographic Diversification
Geographic Diversification #1 commercial real estate services firm in each of the major regions of the world LTM 6/30/11 revenue of $5.5 billion includes $5.3 million of revenue related to discontinued operations. LTM 6/30/11 Revenue1
Slide 8: Revenue Diversification
Revenue Diversification Contractual revenue includes: Property & Facilities Management (14% in 2006 and 34% in LTM 6/30/11), Appraisal & Valuation (7% in 2006 and 6% in LTM 6/30/11), Investment Management (6% in 2006 and 3% in LTM 6/30/11), Development Services (1% in both 2006 and LTM 6/30/11) and
Slide 9: Key Service Lines & Market Environment
Key Service Lines & Market Environment
Slide 10: Revenue Breakdown YTD 2nd Quarter 2011
Revenue Breakdown YTD 2nd Quarter 2011 Includes revenue from discontinued operations of $1.4 million and $2.4 million for the three and six months ended June 30, 2011, respectively, and $1.0 million for the three and six months ended June 30, 2010. 37% 32% 15% 6% 4% 3% 1% 2%
Slide 11: Property and Facilities Management Revenue
Property and Facilities Management Revenue1 ($ in Millions) CAGR = 28% 2 Outsourcing Services Revenue includes property management, facilities management and project management fees. Does not include transaction revenue associated with outsourcing activities. Includes Trammell Crow Company’s revenue
Slide 12: #1 Provider of Every Outsourced Real Estate Service
#1 Provider of Every Outsourced Real Estate Service 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 outsourcing Pr
Slide 13: 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, 2010. Does not include affiliate offices. 1 Approximately 4,2002 leasing professionals worldwide Tailored service delivery by pr
Slide 14: Office Leasing Market Outlook
Office Leasing Market Outlook forecast Office TW Rent Index; % change versus a year ago Office Vacancy rate; % U.S. Office Rent Forecast and Vacancy
Slide 15: Global Transaction Volume
Global Transaction Volume Source: CBRE-Econometric Advisors, RCA; Q2 2011 Excludes all development sites 1 $0 $50 $100 $150 $200 $250 $300 $0 $20 $40 $60 $80 $100 $120 $140 Asia Pacific Americas EMEA Global Regional , $U.S. Billions Global, $U.S. Billions
Slide 16: Global Investment Management: CBRE Investors
Global Investment Management: CBRE Investors GIM Revenue ($ in Millions) CAGR =18% Assets Under Management ($ in Billions) CAGR =15% Key Facts1 $39.12 billion in assets under management $105.8 million of co-investments As of June 30, 2011. Does not include $21.1 billion of assets under management of
Slide 17: Global Investment Management – Impact of ING REIM
Global Investment Management – Impact of ING REIM Significantly enhances depth and breadth of Investment Management platform Combined Segment Normalized EBITDA Margin of 31% with acquisition (26% without) for 2010 Consolidated company normalized EBITDA margin of 14.5% with acquisition (13.3% without
Slide 18: Highly Complementary Product Offerings
Highly Complementary Product Offerings ING REIM 2 CBRE Investors 1 Note: For purposes of comparison all figures are as of 9/30/10. Minimal Overlap and Integration Based on CBRE Investors AUM calculation methodology. Based on ING REIM’s AUM calculation methodology. Euro/Dollar exchange rate of $1.364
Slide 19: Development Services: Trammell Crow Company
Development Services: Trammell Crow Company Revenue1 ($ 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 include Long-Term Operating Assets (LTOA) of
Slide 20: Financial Performance
Financial Performance CBRE
Slide 21: Revenue and Normalized EBITDA history
($ in Millions) No reimbursements are included for the period 1992 through 1996, as amounts were immaterial. Reimbursements for 1997 through 2001 have been estimated. For 2002 and forward, reimbursements are included. Includes Trammell Crow Company activity for the period December 20, 2006 through D
Slide 22: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule $ millions $700.0 million revolver facility matures in May 2015. As of June 30, 2011 the outstanding revolver balance was $111.2 million. As of June 30, 20111 - 200.0 400.0 600.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Term Loan A Term Loan B Te
Slide 23: Capitalization
Capitalization Net of original issue discount of $11.7 million and $12.3 million at June 30, 2011 and December 31, 2010, respectively. Represents notes payable on real estate in Development Services that are recourse to the Company. Excludes non-recourse notes payable on real estate of $506.4 millio
Slide 24: Business Outlook
Business Outlook We are early in the cyclical recovery with some expected bumps in the road to global economic recovery Outsourcing fundamentals remain strong and we continue to expect double digit growth Investment sales are expected to continue to grow at higher than normal rates Leasing growth is
Slide 25: Appendix
Appendix CBRE
Slide 26: Reconciliation of Normalized EBITDA to EBITDA to Net Income: CBRE Investors
Reconciliation of Normalized EBITDA to EBITDA to Net Income CBRE Investors ($ in millions) 2010 Normalized EBITDA 55.9 $ Adjustments: Cost containment expenses 0.4 Write-down of impaired assets 6.9 EBITDA 48.6 Add: Interest income 0.2 Less: Depreciation and amortization 14.0 Interest expense 22.2 Ro
Slide 27: Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss)
Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) Notes: Includes EBITDA related to discontinued operations of $5.4 million for the twelve months ended June 30, 2011, $16.4 million for the year ended December 31, 2010, $16.9 million for the year ended December 31, 2008 and $6.5 mill
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