Slide 1: First Quarter 2013: Earnings Conference Call
CBRE GROUP, INC. First Quarter 2013: Earnings Conference Call April 25, 2013
Slide 2: 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 and business outlook. These statements should be considered as estim
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS Bob Sulentic PRESIDENT AND CHIEF EXECUTIVE OFFICER Gil Borok CHIEF FINANCIAL OFFICER Jack Durburg GLOBAL PRESIDENT TRANSACTION SERVICES Nick Kormeluk INVESTOR RELATIONS
Slide 4: Q1 2013 Highlights: Business Overview
Total revenue increased 10% (9% excluding discontinued operations) to $1.5 billion Growth in nearly every major service line and across all geographies Strong growth in EMEA, paced by Germany and the U.K. Significantly improved overall performance in Asia Pacific, especially in Greater China and Jap
Slide 5: Global Transaction Services Overview
LEASING BOSTON Quest Diagnostics 200,000 SF lease Marlborough, MA NEW YORK HarperCollins Publishers 180,700 SF lease 195 Broadway GLOBAL TRANSACTION SERVICES OVERVIEW SALES SÃO PAULO Eztec Empreendimentos e Participações S.A. US $275 million sale EZ Towers, Tower A HONG KONG Manulife Financial Corp.
Slide 6: Growth Plan: Global Transaction Services Strategy
Growth Plan GLOBAL TRANSACTION SERVICES STRATEGY PROCESS STRUCTURE PEOPLE CLIENTS
Slide 7: Q1 2013 Performance Overview
Q1 2013 PERFORMANCE OVERVIEW Revenue1 Net Income2 EPS2,3 EBITDA4 Normalized EBITDA4,5 Normalized EBITDA Margin5,6 Q1 2013 $1,479.0 M GAAP $37.5 M Adjusted $51.5 M GAAP $0.11 Adjusted $0.16 $159.8 M $161.3 M 10.9% Q1 2012 $1,350.0 M GAAP $27.0 M Adjusted $45.9 M GAAP $0.08 Adjusted $0.14 $140.5 M $15
Slide 8: Revenue Breakdown
REVENUE BREAKDOWN Includes revenue from discontinued operations of $4.0 million for the three months ended March 31, 2013. Contains recurring revenue aggregating approximately 64% of total revenue for the three months ended March 31, 2013. 1ST QUARTER 2013 Three months ended March 31, % Change ($ in
Slide 9: Global Corporate Services
22 new 14 renewals 10 expansions GLOBAL CORPORATE SERVICES 1. Represents combined data for CBRE and Trammell Crow Company (TCC); includes properties managed by Asset Services; does not include joint ventures and affiliates. 22 new contracts Significant growth internationally three U.S. clients signe
Slide 10: U.S. Market Statistics: Vacancy, Absorption, Cap Rates
U.S. VACANCY U.S. ABSORPTION TRENDS (in millions of square feet) 1Q12 4Q12 1Q13 4Q13 F 4Q14F 2011 2012 2013F 2014F 1Q12 1Q13 Office 16.1% 15.4% 15.3% 15.2% 14.4% 26.1 28.5 19.1 39.6 -1.0 3.5 Industrial 13.3% 12.7% 12.3% 11.8% 11.1% 126.8 129.1 158.2 154.7 26.6 63.0 Retail 13.1% 12.8% 12.5% 11.7% 11.
Slide 11: Americas: Sales, Leasing & Outsourcing Revenue
Total Q1 2013 revenue was up 10% AMERICAS: SALES, LEASING & OUTSOURCING REVENUE SALES LEASING PROPERTY & FACILITIES MANAGEMENT ($ in millions) 9% Q1 FULL YEAR 20% 5% 4% 11% 12% 2011 2012 2013 $1,243.4 $1,288.1 $241.5 $253.7 $1,441.6 $1,620.5 $382.4 $424.9
Slide 12: EMEA: Sales, Leasing & Outsourcing Revenue
Total Q1 2013 revenue was up 16% in USD and local currency EMEA: SALES, LEASING & OUTSOURCING REVENUE SALES LEASING ($ in millions) 0% or 4% in local currency (12%) or (7%) in local currency 44% in USD and local currency 3% or 9% in local currency 6% in USD and local currency 15% in USD and local cu
Slide 13: Asia Pacific: Sales, Leasing & Outsourcing Revenue
Total Q1 2013 revenue was up 9% or 13% in local currency ASIA PACIFIC: SALES, LEASING & OUTSOURCING REVENUE (8%) or (7%) in local currency 2% or 3% in local currency 8% or 13% in local currency 61% or 66% in local currency (9%) or (5%) in local currency 8% or 12% in local currency Q1 FULL YEAR SALES
Slide 14: Development Services
DEVELOPMENT SERVICES In Process figures include Long-Term Operating Assets (LTOA) of $1.1 billion for 1Q 13, $1.2 billion for 4Q 12, $1.5 billion for 4Q 11, $1.6 billion for 4Q 10, $1.4 billion for 4Q 09 and $0.4 billion for both 4Q 08 and 4Q 07. LTOA are projects that have achieved a stabilized lev
Slide 15: Global Investment Management
GLOBAL INVESTMENT MANAGEMENT Includes revenue from discontinued operations of $0.8 million and $5.5 million for the twelve months ended December 31, 2012 and 2011, respectively. Includes revenue from discontinued operations of $0.7 million for the three months ended March 31, 2013. Investment Manage
Slide 16: Pro-forma Normalized EBITDA: Global Investment Management
Pro-forma Normalized EBITDA GLOBAL INVESTMENT MANAGEMENT For the three months ended March 31, 2013, the Company recorded a net reversal of carried interest incentive compensation expense pertaining to future periods of $1.0 million compared to net carried interest compensation expense of $0.1 millio
Slide 17: Mandatory Amortization and Maturity Schedule
As of March 31, 2013 MANDATORY AMORTIZATION AND MATURITY SCHEDULE $ in millions $1,200.0 million revolver facility matures in March 2018. As of March 31, 2013, the outstanding revolver balance was $108.4 million. 1 Global Cash Available Revolver 1,492 30 37 40 68 486 111 2 352 198 800 - 250.0 500.0
Slide 18: Capitalization
CAPITALIZATION Excludes $101.9 million and $94.6 million of cash in consolidated funds and other entities not available for Company use at March 31, 2013 and December 31, 2012, respectively. Net of original issue discount of $9.1 million and $9.5 million at March 31, 2013 and December 31, 2012, resp
Slide 19: Business Outlook: 2013 Expectations
Encouraged by solid start to 2013 in seasonally slowest quarter Expect slow macro recovery to continue Continue to anticipate revenue growth in the mid to high single digits for the full year Investment sales expected to pace growth Steady, low double-digit growth expected in Outsourcing Leasing act
Slide 20: GAAP Reconciliation Tables
GAAP RECONCILIATION TABLES CBRE
Slide 21: Reconciliation of Net Income to Net Income, As Adjusted
RECONCILIATION OF NET INCOME TO NET INCOME, AS ADJUSTED ($ in millions, except for per share data) 2013 2012 Net income attributable to CBRE Group, Inc. 37.5 $ 27.0 $ Amortization expense related to ING REIM and TCC incentive fees and customer relationships acquired, net of tax 4.6 11.4 Integration
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 $4.4 million for the three months ended March 31, 2013. Includes depreciation and amortization expense related to discontinued operations of $0.3 million for the three months ended March