Slide 1: CBRE Group, Inc. Investor Presentation September 2012
CBRE Group, Inc. Investor Presentation September 2012
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 our ability to inte
Slide 3: The Global Market Leader
The Global Market Leader Includes affiliate offices. As of June 30, 2012. Based on 2011 revenues versus Jones Lang LaSalle. Scale and Diversity 1.6x nearest competitor3 Thousands of clients; approximately 80% of the Fortune 100 $159.0 billion of transaction activity in 2011 Broad Capabilities #1 lea
Slide 4: 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 5: Diverse Client Base
Diversified revenue spread across a broad base of clients Diverse Client Base 2011 Revenue by Client Type1 Includes activity from ING Clarion Real Estate Securities (CRES), ING REIM Asia and ING REIM Europe beginning July 1, October 3 and October 31, 2011, respectively.
Slide 6: Geographic Diversification
Geographic Diversification #1 commercial real estate services firm in each of the major regions of the world LTM 6/30/12 revenue of $6.3 billion includes $4.4 million of revenue related to discontinued operations. Includes activity from ING CRES, ING REIM Asia and ING REIM Europe beginning July 1, O
Slide 7: Revenue Diversification
Revenue Diversification Contractual revenue includes: Property & Facilities Management (14% in 2006 and 34% in LTM 6/30/12), Appraisal & Valuation (7% in 2006 and 6% in LTM 6/30/12), Investment Management (6% in both 2006 and LTM 6/30/12), Development Services (1% in both 2006 and LTM 6/30/12) and O
Slide 8: Revenue Breakdown YTD 2nd Quarter 2012
Revenue Breakdown YTD 2nd Quarter 2012 Includes revenue from discontinued operations of $1.4 million and $2.4 million for the three and six months ended June 30, 2011, respectively. 36% 28% 15% 8% 6% 4% 1% 2% Three months ended June 30, Six months ended June 30, ($ in millions) 2012 20111 % Change 2
Slide 9: Property and Facilities Management
Property and Facilities Management Revenue1 ($ in Millions) CAGR = 23% 2 Outsourcing Services Revenue includes property management, facilities management and project management fees. Does not include transaction revenue associated with outsourcing activities. Includes Trammell Crow Company’s revenue
Slide 10: #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 11: Leasing
Leasing Global Leasing Revenue ($ in Millions) Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. As of December 31, 2011. Does not include affiliate offices. 1 Approximately 3,7002 leasing professionals worldwide Tailored service delivery by pr
Slide 12: Office Leasing Market Outlook
Office Leasing Market Outlook forecast Office TW Rent Index; % change versus a year ago Office Vacancy rate; % U.S. Office Rent Forecast and Vacancy TW Rent Index Vacancy
Slide 13: Sales
Sales Global Sales Revenue ($ in Millions) Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. As of December 31, 2011. Does not include affiliate offices. 1 Key Facts Approximately 1,8002 investment sales specialists worldwide Specialization acr
Slide 14: Global Transaction Volume
Global Transaction Volume Source: CBRE Research (EMEA and Asia Pacific), RCA (Americas); Data excludes Development sites. Updated for Q2 2012. Regional Volume, $ in Billions Global Volume, $ in Billions
Slide 15: Global Investment Management: CBRE Global Investors
Global Investment Management: CBRE Global Investors GIM Revenue1 ($ in Millions) CAGR =18% Assets Under Management4 ($ in Billions) CAGR =27% Highlights3 ING REIM integration proceeding on schedule YTD Q2 2012 pro-forma normalized EBITDA margin of 31% $91.2 billion in assets under management; YTD 20
Slide 16: Global Investment Programs
Global Investment Programs Description Assets Under Management1,2 ($ in billions) Typical Fee Structure Separate Accounts $23.8 Management fees Transaction fees Incentive fees Sponsored Funds $33.8 Management fees Transaction fees LP profits Carried interest Unlisted Securities $12.2 Management fees
Slide 17: Development Services: Trammell Crow Company
Development Services: Trammell Crow Company Revenue1 ($ 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. As of December 31 for each year presented except for Q2 2012, w
Slide 18: 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 Insignia activity for the period July 23, 2003 through December 31, 2003.
Slide 19: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule $ in millions $700.0 million revolver facility matures in May 2015. As of June 30, 2012, the outstanding revolver balance was $52.8 million. As of June 30, 2012 1 34 70 75 350 420 458 378 370 350 0.0 250.0 500.0 2012 2013 2014 2015 2016 2017 2018 2019 202
Slide 20: Capitalization
Capitalization Excludes $146.2 million and $208.1 million of cash in consolidated funds and other entities not available for Company use at June 30, 2012 and December 31, 2011, respectively. Net of original issue discount of $10.3 million and $11.0 million at June 30, 2012 and December 31, 2011, res
Slide 21: Business Outlook
Business Outlook The cyclical recovery in commercial real estate continues despite a slow, uneven economic recovery Outsourcing is expected to deliver strong, consistent growth Total leasing growth rates remain modest Global investment sales will continue to be highly dependent on regional market co
Slide 22: Appendix
Appendix CBRE
Slide 23: 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 $12.2 million for the twelve months ended June 30, 2012, $14.1 million for the year ended December 31, 2011, $16.4 million for the year ended December 31, 2010, $16.9 milli
Slide 24: Reconciliation of Global Investment Management Pro-forma Normalized EBITDA
Reconciliation of Global Investment Management Pro-forma Normalized EBITDA Six Months Ended June 30, ($ in millions) 2012 EBITDA 55.3 Add Back: Integration and other costs related to acquisitions 19.1 Normalized EBITDA 74.4 Net accrual of incentive compensation expense related to carried interest re