Cbre Group Inc · NYSE:CBRE

Cbre — CB Richard Ellis Group — Investor Presentation (February 2008)

28 slides from Cbre's investor presentation, Feb 11, 2008

  1. Slide 1: CB Richard Ellis Group, Inc. Investor Presentation February 2008

    CB Richard Ellis Group, Inc. Investor Presentation February 2008 Property Photo (~3.25” X 4.75” with 1pt white border)

  2. Slide 2: Forward Looking Statements

    CB Richard Ellis | Page 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 growth momentum in 2008, future operations, future expenses, and future f

  3. Slide 3: Global Leader In Commercial Real Estate Services

    CB Richard Ellis | Page 3 Global Leader In Commercial Real Estate Services 2.3x nearest competitor Thousands of clients, 85% of Fortune 100 FY 2007 Revenue of $6.0 billion FY 2007 Normalized EBITDA of $1.0 billion Strong organic revenue and earnings growth #1 commercial real estate brokerage #1 outs

  4. Slide 4: #1 Position in a Fragmented Market

    CB Richard Ellis | Page 4 #1 Position in a Fragmented Market $27 Billion U.S. Commercial Real Estate Market1 53.2% 25.0% 12.7% 2.8% 1.9% 4.4% CBRE C&W JLL GBE Other/ Third Party Self Providers Source: 2006 external public filings and CBRE management estimates as of December 31, 2007. 1. Excludes glo

  5. Slide 5: Revenue Breakdown

    CB Richard Ellis | Page 5 Revenue Breakdown 6% 2% 3% 1% 31% 23% 6% 28% Leasing Sales Property and Facilities Management Appraisal and Valuation Investment Management Development Services Commercial Mortgage Brokerage Other ($ in millions) 20071 Reported2 Incl TCC3 % Change 20071 Reported2 % Change I

  6. Slide 6: Segment Contribution

    CB Richard Ellis | Page 6 Segment Contribution 61% 22% 6% 9% 2% Americas EMEA Asia Pacific Global Investment Management Development Services 27% 1% 12% 9% 51% FY 2007 Revenue1 FY 2007 Normalized2 EBITDA 1. Includes revenue from discontinued operations, which totaled $2.1 million for the year ended D

  7. Slide 7: Segment Revenue Performance

    CB Richard Ellis | Page 7 Americas 1,842 2,173 2,507 3,690 2004 2005 2006 2007 EMEA 551 707 934 1,314 2004 2005 2006 2007 Asia Pacific 160 187 355 549 2004 2005 2006 2007 Global Investment Management 94 127 228 348 2004 2005 2006 2007 Segment Revenue Performance1 Strong Growth Across All Segments 1.

  8. Slide 8: US Market Statistics

    CB Richard Ellis | Page 8 US Market Statistics 9.8% 9.4% 12.5% 2007 8.7% 9.9% 13.7% 2008F 9.5 122.0 53.4 2007 12.0 10.1 8.7% Retail 94.0 208.0 9.4% Industrial 13.6 79.8 12.6% Office 2008F 2006 2006 US Absorption Trends (in millions of square feet) Q4 Vacancy Source: TWR Outlooks 2008 Spring Prelim C

  9. Slide 9: Leasing

    CB Richard Ellis | Page 9 Leasing CBRE Global Leasing Revenue ($ in millions) 692 986 1,106 1,479 1,870 2003 2004 2005 2006(1) 2007 Q4 2007 Business Update Fundamentals of leasing business remain strong, despite slowing in US and EMEA in Q4 In U.S. rational levels of new construction in 2008 should

  10. Slide 10: Sales

    CB Richard Ellis | Page 10 Institutional Investment In Real Estate ($ i n billions) 423 479 520 606 718 2003 2004 2005 2006 2007 28% CBRE Global Sales Revenue ($ in millions) 513 807 1,078 1,246 1,660 2003 2004 2005 2006 2007 Sales Q4 2007 Business Update Challenging credit markets impacted investme

  11. Slide 11: Outsourcing Services

    CB Richard Ellis | Page 11 Outsourcing Services Global Square Footage Managed1 (SF in mil lions) 1,203 1,248 1,44 4 2004 2005 2006 Global property and facilities management Global project management Global corporate services CAGR 10% 1. Represents combined data for CBRE and TCC; does not include joi

  12. Slide 12: Global Corporate Services

    CB Richard Ellis | Page 12 Global Corporate Services 17 account renewals 18 account expansions 26 new accounts Strong Account Activity in 2007 Cross Selling Examples U.S. transaction management expanded to EMEA Oracle: Facilities management client added transaction management BB&T: Transaction manag

  13. Slide 13: Global Investment Management

    CB Richard Ellis | Page 13 13.0 18.0 26.8 35.5 52. 7 113.1 2002 2003 2004 2005 2006 2007 Global Investment Management 6% 14 15 17 29 38 2003 2004 2005 2006 2007 57.1 68.4 94.0 99.3 126.3 259.2 28.0 101.7 88.7 347.9 127.3 228.0 2002 2003 2004 2005 2006 2007 Carried Interest Investment Ma nagement CAG

  14. Slide 14: Global Investment Management Structure

    CB Richard Ellis | Page 14 Global Investment Management Structure Asset Management Fees Incentive Fees Acquisition Fees Asset Management Fees LP Profits Carried Interest Acquisition Fees Asset Management Fees Incentive Fees CBRE Income Stream 100% 62% 15% CAGR of Assets Under Management1 No Yes No C

  15. Slide 15: Global Investment Management Benchmark Comparison

    CB Richard Ellis | Page 15 Global Investment Management U.K. Discretionary Accounts1 0 5 10 15 20 25 Five Years Three Years One Year (%) IPD In dex Benchmark Total Gross Retu rn U.S. Discretionary Accounts1 0 2 4 6 8 10 12 14 16 18 20 Five Years Three Years One Year (%) N CREIF Benchmark Total Gross

  16. Slide 16: Development Services

    CB Richard Ellis | Page 16 Annual Normalized EBITDA 15.9 31.3 34.8 37.3 73.9 2003 2004 2005 2006 2007 Development Services 1. Includes Trammell Crow Company’s operations prior to the acquisition on 12/20/06. 2. Reflects full year pro-forma results for Development Services, including the impact of 20

  17. Slide 17: 2005-Present In-Fill Acquisitions

    CB Richard Ellis | Page 17 2005-Present In-Fill Acquisitions Advocate Consulting Group, Inc. CB Richard Ellis Charlotte LLC Columbus Commercial Realty Project Advantage, Inc. The Polacheck Company CB Richard Ellis Hawaii Marshall & Stevens’ Cost Segregation Businesses KrombachPartners CB Richard Ell

  18. Slide 18: Financial Overview

    CB Richard Ellis | Page 18 Financial Overview

  19. Slide 19: 2007 Performance Highlights

    CB Richard Ellis | Page 19 2007 Performance Highlights $317.6 million, or 49% higher than the prior year $970.1 million2 Normalized EBITDA $180.7 million, or 28% higher than the prior year $834.3 million EBITDA Increased 23% as compared to $1.35 for the prior year Increased 43% as compared to $1.48

  20. Slide 20: Consistent Long Term Growth

    CB Richard Ellis | Page 20 Consistent Long Term Growth1 ($ in millions) 1. No reimbursements are included for the period 1992 through 1996, as amounts were immaterial. Reimbursement from 1997 through 2001 have been estimated. For 2002 through 2007, reimbursements are included. 2. Includes TCC activi

  21. Slide 21: Normalized EBITDA and Debt Highlights

    CB Richard Ellis | Page 21 Normalized EBITDA: $115 $131 $183 $300 $461 $759 $970 $487 $450 $635 $378 $128 $1,874 $1,693 4.2x 3.4x 3.5x 0.3x 2.5x 1.3x 1.9x $2,036 $2,118 $577 $635 $798 $530 $544 2001 2002 2003 2004 2005 2006 2007 Net Debt Total Debt Net Debt to Normalized EBITDA . Debt Highlights Not

  22. Slide 22: 2007 Normalized Internal Cash Flow

    CB Richard Ellis | Page 22 Internal Cash Flow Integration & merger related costs Net Proceeds from Savills disposition Development gains impacted by purchase accounting Cap Ex1 D&A Net Income, as adjusted ($ millions) 2007 Normalized Internal Cash Flow Strong cash flow generator Low capital intensit

  23. Slide 23: Key Investment Points

    CB Richard Ellis | Page 23 Key Investment Points CBRE Growth Uniquely positioned to thrive in tough market • Most diversified revenue base (geography and services) • Strong balance sheet • Variable cost structure • Strong cash flow generation Opportunity to gain share / grow • Cross selling • Indust

  24. Slide 24: Appendix

    CB Richard Ellis | Page 24 Appendix

  25. Slide 25: Reconciliation of Normalized EBITDA to EBITDA to Net Income

    CB Richard Ellis | Page 25 Reconciliation of Normalized EBITDA to EBITDA to Net Income ($ in millions) 2007 2006 Normalized EBITDA 970.1 $ 652.5 $ Adjustments: Integration costs related to acquisitions 45.2 7.6 Loss (gain) on trading securities acqui red in the 33.7 (8.6) Trammell Crow Company acqui

  26. Slide 26: Reconciliation of Normalized EBITDA to Net Income by Segment

    CB Richard Ellis | Page 26 Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) ($ in millions) Americas EMEA Asia Pacific Global Investment Management Development Services1 Normalized EBITDA 497.2 $ 264.6 $ 82.9 $ 113.1 $ 12.3 $ Less:Merger-related and other non-recurring charges 55.6

  27. Slide 27: Reconciliation of Net Income to Net Income, As Adjusted

    CB Richard Ellis | Page 27 Reconciliation of Net Income to Net Income, As Adjusted ($ in millions) 2007 2006 Net Income 390.5 $ 318.6 $ Amortization expense related to net revenue backlog, incentive fees, and customer relationships acquired, net of tax 24.9 9.7 Integration costs related to acquisiti

  28. Slide 28: Reconciliation of Normalized EBITDA to EBITDA to Net Income 2002-2005

    CB Richard Ellis | Page 28 Reconciliation of Normalized EBITDA to EBITDA to Net Income ($ in millions) 2005 2004 2003 2002 Normalized EBITDA 461.3 $ 300.3 $ 183.2 $ 130.7 $ Less: Merger-related and other non-recuring charges - 25.6 36.8 - Integration costs related to acquisitions 7.1 14.4 13.6 - One

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