Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Q2 2010 Earnings Presentation
22 slides from Cbre's earnings presentation, Jul 28, 2010
Slide 1: Second Quarter 2010 Earnings Conference Call
CB Richard Ellis Group, Inc. Second Quarter 2010 Earnings Conference Call July 28, 2010
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 and, in particular, our business outlook.
Slide 3: Conference Call Participants
Conference Call Participants Brett White Chief Executive Officer Gil Borok Chief Financial Officer Nick Kormeluk Investor Relations
Slide 4: Business Overview Highlights
Business Overview Highlights: Revenue and earnings indicate strong performance against a backdrop of nascent commercial real estate recovery Investment sales continued strong year over year growth Leasing performance strong across all geographies Outsourcing showed solid growth in all geographies -
Slide 5: Q2 CBRE Wins
Q2 CBRE Wins NEW YORK, NY Proskauer Rose LLP CBRE represented Proskauer Rose LLP in the relocation of its global headquarters to 11 Times Square. This is the largest lease in Manhattan to date in 2010 (406,339 SF). CBRE also represented the landlord, SJP Properties. AUSTRALIA Australian Taxation Off
Slide 6: Q2 2010 Performance Overview
Q2 2010 Performance Overview Q2 2009 Q2 2010 $90.9 million $165.2 million Normalized EBITDA4, 5 9.5% 14.1% Normalized EBITDA Margin4, 5 $68.4 million $161.6 million EBITDA4 GAAP ($0.02) Adjusted $0.04 GAAP $0.17 Adjusted $0.18 EPS2,3 GAAP ($6.6) million Adjusted $9.7 million GAAP $54.8 million Adjus
Slide 7: Revenue Breakdown 2nd Quarter 2010
Revenue Breakdown 2nd Quarter 2010 Includes revenue from discontinued operations, which totaled $1.0 million for the three and six months ended June 30, 2010. 37% 33% 13% 7% 3% 2% 2% 3% ($ in millions) 2010 1 2009 % Change 2010 1 2009 % Change Property & Facilities Management 441.1 399.8 10 861.7 79
Slide 8: Outsourcing Q2 2010
Outsourcing Q2 2010 Wins 10 renewals 7 expansions 17 new CAGR 13% 1. Represents combined data for CBRE and TCC; does not include joint ventures and affiliates 1 Successes: GCS set record for contracts signed in Q2 2010 Square footage under management increased by approximately 10% in the first half
Slide 9: Market Statistics
Market Statistics Source: CBRE Econometric Advisors (EA) Outlooks Fall 2010 preliminary -3.7 -7.3 -7.6 2010F 11.0 -0.7 -6.3 -21.0 -5.8 12.9% 13.1% 13.1% 13.0% 12.2% Retail 170.4 -5.5 -80.9 -260.2 -77.3 13.2% 14.1% 14.1% 14.0% 13.0% Industrial 22.5 3.3 -17.4 -40.5 19.9 16.6% 17.0% 16.7% 16.6% 15.5% O
Slide 10: Sales and Leasing Revenue - Americas
Sales and Leasing Revenue - Americas ($ in millions) Sales Leasing 47% 49% 37% 29% $362.8 $467.7 $57.8 $85.0 Second Quarter $102.8 $153.1 YTD Second Quarter $184.6 $253.4 2009 2010
Slide 11: Sales and Leasing Revenue - EMEA
Sales and Leasing Revenue – EMEA ($ in millions) Sales Leasing 93% 56% 15% 19% $123.5 $147.5 $68.0 $78.1 $24.0 $46.3 Second Quarter $47.2 $73.4 YTD Second Quarter 2009 2010
Slide 12: Sales and Leasing Revenue - Asia Pacific
Sales and Leasing Revenue – Asia Pacific ($ in millions) Sales Leasing 66% 87% 18% 24% $25.8 $48.3 YTD Second Quarter $16.3 $27.1 Second Quarter $79.1 $98.3 $46.1 $54.4 2009 2010
Slide 13: Development Services
Development Services Balance Sheet Participation $57.4 million co-invested in Development Services at quarter end. $6.8 million in recourse debt to CBRE and repayment guarantees. In Process figures contain Long-Term Operating Assets (LTOA), including $1.6 billion for 2Q 10, $1.4 billion for 4Q 09 an
Slide 14: Global Investment Management
Global Investment Management ($ in billions) ($ in millions) CBRE’s co-investments totaled $86.8 million at June 30, 2010. CAGR 14% CAGR 15.5% ($ in millions) ($ in millions) YTD Q2 Revenue 60.0 56.7 18.5 6.9 11.1 3.0 69.9 86.3 YTD Q2 2009 YTD Q2 2010 Annual Revenue 57.1 68.4 94.0 99.3 126.3 259.2 1
Slide 15: Global Investment Management Pro-forma Normalized EBITDA
Global Investment Management Pro-forma Normalized EBITDA For the three months ended June 30, 2010 and 2009, the Company recorded a net reversal of carried interest incentive compensation expense of $0.5 million and $0.3 million, respectively. For the six months ended June 30, 2010, the Company recor
Slide 16: Recovery & Restructuring Services Group
Recovery & Restructuring Services Group Distressed Deal Volume1 Source: RCA Troubled Assets Radar, as of July 9, 2010 Our Process Recapitalizations, loan sales/workouts, asset and portfolio valuations, asset management and repositioning and receivership services Currently marketing more than $7.5B o
Slide 17: Mandatory Amortization and Maturity Schedule
$ millions 1,054 28 132 25 409 450 Approximately $225.1 million and $333.0 million of the revolver facilities mature in June 2011 and June 2013 respectively. As of 6/30/10 the outstanding revolver balance was $25.2 million. Mandatory Amortization and Maturity Schedule 0 0 1 1 - 200.0 400.0 600.0 800
Slide 18: Capitalization
Capitalization Net of original issue discount of $12.9 million and $13.5 million at June 30, 2010 and December 31, 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 $715.0 millio
Slide 19: Business Outlook
Business Outlook Remain in early days of economic and commercial real estate recovery – rental rates, absorption and yields stabilizing or improving $600 million in operating expense reductions position us well for profit expansion during recovery Q2 2010 and YTD 2010 performance has exceeded our ex
Slide 20: GAAP Reconciliation Tables
GAAP Reconciliation Tables CB RICHARD ELLIS
Slide 21: Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss)
Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) Includes EBITDA related to discontinued operations of $12.9 million for the three months ended June 30, 2010. Includes depreciation and amortization related to discontinued operations of $0.2 million for the three months ended June 3
Slide 22: Reconciliation of Net Income (Loss) to Net Income, As Adjusted
Reconciliation of Net Income (Loss) to Net Income, As Adjusted ($ in millions, except for share data) 2010 2009 Net income (loss) attributable to CB Richard Ellis Group, Inc. 54.8 $ (6.6) $ Cost containment expenses, net of tax 1.6 10.6 Write-down of impaired assets, net of tax - 2.4 Amortization ex
CB Richard Ellis Group — Q2 2010 Earnings Presentation on 6ix