Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Presentation (March 2011)
29 slides from Cbre's investor presentation, Mar 8, 2011
Slide 1: CB Richard Ellis Group, Inc. Investor Presentation March 2011
CB Richard Ellis Group, Inc. Investor Presentation March 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 consumma
Slide 3: Overview
Overview CBRE CB RICHARD ELLIS
Slide 4: The Global Market Leader
The Global Market Leader Includes affiliate offices. On a combined basis assuming the acquisition of ING’s Real Estate Investment Management business (ING REIM), which is expected to close in the second half of 2011. As of December 31, 2010. Based on 2010 revenues versus Jones Lang LaSalle. Scale an
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
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 2010 revenue includes $3.9 million of revenue related to discontinued operations. 2010 Revenue1
Slide 8: Revenue Diversification
Revenue Diversification 1. Contractual revenue includes: Property & Facilities Management (14% in 2006 and 35% in 2010), Appraisal & Valuation (7% in both 2006 and 2010), Investment Management (6% in 2006 and 3% in 2010), Development Services (1% in both 2006 and 2010) and Other (1% in 2006 and 2% i
Slide 9: Key Service Lines & Market Environment
Key Service Lines & Market Environment
Slide 10: Revenue Breakdown Full Year 2010
Revenue Breakdown Full Year 2010 1. Includes revenue from discontinued operations, which totaled $2.2 million and $3.9 million for the three and twelve months ended December 31, 2010, respectively. 35% 34% 15% 7% 3% 3% 1% 2% ($ in millions) 2010 1 2009 % Change 2010 1 2009 % Change Property & Facili
Slide 11: Property and Facilities Management Revenue
Property and Facilities Management Revenue1 ($ in Millions) CAGR = 28% Outsourcing Services 1. Revenue includes property management, facilities management and project management fees. Does not include transaction revenue associated with outsourcing activities. 2. Includes Trammell Crow Company’s rev
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) 1. Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. 2. As of December 31, 2009. Does not include affiliate offices. 1 More than 4,7002 leasing professionals worldwide Tailored service delivery by
Slide 14: 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
Slide 15: Sales
Sales Global Sales Revenue ($ in Millions) 1. Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. 2. As of December 31, 2009. Does not include affiliate offices. Key Facts More than 1,3002 investment sales specialists worldwide Specialization acr
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 $37.6 billion in assets under management $99.0 million of co-investments As of December 31, 2010.
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 Normalized EBITDA Margin of 31% with acquisition (26% without) for 2010 Expected to produce modest future net positive run rate cost synergies Combined Platform Summa
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: Total Company 2010 Results - Stand Alone & Combined with ING REIM
Combined 1 Based on 2010 preliminary results as calculated by ING REIM management. Total Company 2010 Results - Stand Alone & Combined with ING REIM 13.3% Margin 14.5% Margin $ in Billions $5.1 $0.7 $5.1 $0.7 $0.3 $0.1 Revenue Normalized EBITDA Revenue Normalized EBITDA CBRE ING REIM
Slide 20: Development Services: Trammell Crow Company
Development Services: Trammell Crow Company Revenue1 ($ 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 contain Long-Term Operating Assets (LTOA), i
Slide 21: Financial Performance
Financial Performance CBRE CB RICHARD ELLIS
Slide 22: 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 23: Debt Highlights
Debt Highlights Normalized EBITDA excludes merger-related and other non-recurring costs, integration and other costs related to acquisitions, cost containment expenses, one-time IPO related compensation expense, gains/losses on trading securities acquired in the Trammell Crow Company acquisition and
Slide 24: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule As of September 30, 2010 As of December 31, 20101 $ millions $700 million revolver facility matures in May 2015. As of December 31, 2010 the outstanding revolver balance was $17.5 million.
Slide 25: Capitalization
Capitalization Net of original issue discount of $12.3 million and $13.5 million at December 31, 2010 and 2009, 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 $623.8 million and $54
Slide 26: Business Outlook
Business Outlook We are still in the early stages of a commercial real estate recovery – although 2011 growth rates are not likely to match robust 2010 rates Investment sales and leasing should continue to lead with solid growth, albeit with tougher comparisons Acceleration in outsourcing growth rat
Slide 27: Appendix
Appendix CBRE CB RICHARD ELLIS
Slide 28: Reconciliation of Normalized EBITDA to EBITDA to Net Income: CBRE Investors
Reconciliation of Normalized EBITDA to EBITDA to Net Income CBRE Investors ($ in millions) 2010 Normalized EBITDA 55.9 $ Adjustments: Integration and other costs related to acquisitions - Cost containment expenses 0.4 Write-down of impaired assets 6.9 EBITDA 48.6 Add: Interest income 0.2 Less: Depre
Slide 29: 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 $16.4 million for the year ended December 31, 2010, $16.9 million for the year ended December 31, 2008 and $6.5 million for the year ended December 31, 2007. Includes inter
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