Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Presentation (September 2011)
28 slides from Cbre's investor presentation, September 2011
Slide 1: CB Richard Ellis Group, Inc. Investor Presentation
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 CB Richard Ellis | Page 3
Slide 4: The Global Market Leader
The Global Market Leader 100+ years Leading Global 400+ offices in over 60 countries1 Brand #1 in virtually every major global business center #1 leasing #1 investment sales #1 outsourcing Broad #1 appraisal and valuation Capabilities #1 commercial mortgage brokerage #1 commercial
Slide 5: Our Vision
Our Vision Be the preeminent, vertically integrated, globally capable commercial real estate services firm Our Strategy 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 Objectiv
Slide 6: Diverse Client Base
Diverse Client Base Diversified revenue spread across broad base of clients 2010 Revenue by Client Type Offshore Investors, 1% Conduits/Wall Street Other, 5% Firms, 1% Opportunity Funds, 4% REITs, 4% Government, 5% Corporations, 44% Individuals/Partnerships, 7% Pensions Funds/P F Advisors, 10% Insur
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 Revenue1 Development Services 2% Global Investment Management 4% Asia Pacific 13% EMEA 18% Americas 63% 1. LTM 6/30/11 revenue of $5.5 billion includes $5.3 million of revenue rel
Slide 8: Revenue Diversification
Revenue Diversification Contractual revenues1 represented 46% of LTM 6/30/11 revenue, up from 29% in 2006 2006 Revenue2 LTM 6/30/11 Revenue3 Contractual 29% Contractual Non- 46% Contractual 54% Non- Contractual 71% 1. Contractual revenue includes: Property & Facilities Management (14% in 2006 and 34
Slide 9: Key Service Lines & Market Environment
Key Service Lines & Market Environment CB Richard Ellis | Page 9
Slide 10: Revenue Breakdown
Revenue Breakdown YTD 2nd Quarter 2011 4% 3% 1% 2% 6% 37% 15% 32% Three months ended June 30, Six months ended June 30, ($ in millions) 20111 20101 % Change 20111 20101 % Change Property & Facilities Management 498.7 441.1 13 977.0 861.7 13 Leasing 471.4 387.0 22 824.9 714.7 15 Sales 228.0 158.3 44
Slide 11: Outsourcing Services
Outsourcing Services Property and Facilities Management Revenue1 Percent of YTD Q2 2011 Total Revenue1 ($ in Millions) $1,720 $1,772 $1,633 $1,396 37% $568 $467 $492 $323 2003 2004 2005 20062 2007 2008 2009 2010 Global Square Footage Managed 3 (SF in Billions) 2.8 2.6 2.2 1.9 1.6 1.3 1.4 1.2 2004 20
Slide 12: #1 Provider of Every Outsourced Real Estate Service
#1 Provider of Every Outsourced Real Estate Service Transaction Project Property/Facilities Consulting Management Management Management • Global execution • Full service • Sourcing and • Organizational of transactions outsourcing procurement design with a portfolio- • Program • Operations and • Port
Slide 13: Leasing
Leasing Global Leasing Revenue Percent of YTD Q2 2011 Total Revenue ($ in Millions) $1,870 $1,711 $1,744 $1,479 $1,348 $1,106 $986 $692 32% 1 2003 2004 2005 2006 2007 2008 2009 2010 Key Facts Approximately 4,2002 leasing professionals worldwide Tailored service delivery by property type and indu
Slide 14: Office Leasing Market Outlook
Office TW Rent Index; % change versus a year ago 0 5 10 15 (5) (15) (10) 2000Q1 CB Richard Ellis | Page 14 2000Q4 2001Q3 2002Q2 2003Q1 2003Q4 TW Rent Index 2004Q3 2005Q2 2006Q1 Vacancy 2006Q4 2007Q3 2008Q2 2009Q1 2009Q4 2010Q3 U.S. Office Rent Forecast and Vacancy 2011Q2 2012Q1 2012Q4 forecast 2013Q
Slide 15: Sales
Sales Global Sales Revenue Percent YTD Q2 2011 Total Revenue ($ in Millions) $1,660 $1,246 $1,078 $807 $870 $769 15% $513 $507 2003 2004 2005 2006 1 2007 2008 2009 2010 Key Facts Approximately 1,5002 investment sales specialists worldwide Specialization across all major property types $65.3 bi
Slide 16: Global Transaction Volume
Global Transaction Volume Regional , $U.S. Billions Global, $U.S. Billions $140 $300 $120 $250 $100 $200 $80 $150 $60 $100 $40 $50 $20 $0 $0 Asia Pacific1 Americas EMEA Global Source: CBRE-Econometric Advisors, RCA; Q2 2011 1. Excludes all development sites CB Richard Ellis | Page 16
Slide 17: Global Investment Management: CBRE Investors
Global Investment Management: CBRE Investors GIM Revenue Percent of YTD Q2 2011 Total Revenue ($ in Millions) Carried Interest $348 Acquisition, Disposition & Incentive 89 3% Investment Management $228 $216 20 102 143 $161 27 $141 $127 20 $94 14 28 $68 58 39 169 53 141 127 15 116 53 55 68 46 2003 20
Slide 18: Global Investment Management – Impact of ING REIM
Global Investment Management – Impact of ING REIM • Significantly enhances depth and 2010 Combined Results ($ in Millions) breadth of Investment Management platform 305 • Combined Segment Normalized EBITDA Margin of 31% with acquisition (26% without) for 2010 216 104 56 • Consolidated company normal
Slide 19: Highly Complementary Product Offerings
Highly Complementary Product Offerings CBRE Investors 1 ING REIM 2 Note: For purposes of comparison all figures are as of 9/30/10. Minimal Overlap and Integration 1. Based on CBRE Investors AUM calculation methodology. 2. Based on ING REIM’s AUM calculation methodology. Euro/Dollar exchange rate o
Slide 20: Development Services: Trammell Crow Company
Development Services: Trammell Crow Company Revenue1 Percent of YTD Q2 2011 Total Revenue ($ in Millions) 1% $134 $120 $105 $83 $88 $79 $80 $62 2003 2004 2005 2006 2007 2008 2009 2010 Projects In Process/Pipeline Key Facts3 ($ in Billions) $6.3 billion in process/pipeline In Process 2 Pipeline $2.
Slide 21: Financial Performance
Financial Performance CB Richard Ellis | Page 21
Slide 22: Historical Performance
Historical Performance Revenue 1 ($ in Millions) 6,036 5,530 5,130 5,119 4,032 4,166 3,194 2,647 1,810 1,403 1,518 1,362 1,362 1,187 583 759 360 392 429 469 2 3 3 3 1. No reimbursements are included for the period 1992 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2
Slide 23: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule As of June 30, 20111 $ millions 600.0 400.0 200.0 - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Term Loan A Term Loan B Term Loan D Sr. Subordinated Notes Sr. Unsecured Notes Revolver 1. $700.0 million revolver facility matures in May 2015. As of Ju
Slide 24: Capitalization
Capitalization As of ($ in millions) 6/30/2011 12/31/2010 Variance Cash 752.1 506.6 245.5 Revolving credit facility 111.2 17.5 93.7 Senior secured term loan A 323.8 341.3 (17.5) Senior secured term loan B 297.7 299.2 (1.5) Senior secured term loan D 400.0 - 400.0 Senior subordinated notes 1 438.3 43
Slide 25: 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 g
Slide 26: Appendix
Appendix CB Richard Ellis | Page 26
Slide 27: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Reconciliation of Normalized EBITDA to EBITDA to Net Income CBRE Investors Year Ended December 31, ($ 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
Slide 28: Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss)
Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) Year Ended December 31, ($ in millions) LTM Q2 2011 2010 2009 2008 2007 2006 1 Normalized EBITDA $ 721.6 $ 681.3 $ 453.9 $ 601.2 $ 970.1 $ 652.5 Less: Write-down of impaired assets 6.8 11.3 32.5 100.4 - - Cost containment expenses 5.
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