Slide 1: Global Market Leader in Integrated Commercial Real Estate Services
May 2015 CBRE GROUP, INC. Global Market Leader in Integrated Commercial Real Estate Services
Slide 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 future growth momentum, operations, financial performance, business outlook, and our ability to close and integrate the Global
Slide 3: The Global Market Leader
THE GLOBAL MARKET LEADER CBRE is the premier global provider of integrated services to commercial real estate investors and occupiers. 1. As of December 31, 2014; includes affiliates. 2. As of March 31, 2015. GLOBAL LEADERSHIP WITH BROAD CAPABILITIES #1 Leasing #1 Property Sales #1 Outsourcing #1 Ap
Slide 4: Awards and Rankings
Named a World’s Most Ethical Company 4 Ethisphere Top real estate services and investment company in “green” rankings Newsweek Global Real Estate Advisor of the Year three years in a row Euromoney The Lipsey Company Top real estate firm and ranked 71st out of 500 on 2015 “Americas Best Employers” li
Slide 5: CBRE Serves Investors and Occupiers
CBRE SERVES INVESTORS AND OCCUPIERS CBRE’s integrated, best-in-class offering creates value for clients at every stage of the life cycle
Slide 6: Revenue and EBITDA Growth 2003 to 2014
Revenue increased 5.0x from 2003 to 2014 Revenue CAGR of 16% Normalized EBITDA1 increased approximately 6.4x from 2003 to 2014 Normalized EBITDA CAGR of 18% Q1 2015 vs Q1 2014 performance: Revenue is up 10% (or 15% in local currency) Adjusted EPS increased 28% See slide 30 for footnotes.
Slide 7: Positioned for Long-Term Growth
Consolidation Core leasing and capital markets remain highly fragmented Outsourcing Still in early stage of penetration with occupiers Drives largely recurring leasing revenues Capability With scale and focus, we continue to extend our globally integrated offering POSITIONED FOR LONG-TERM GROWTH CBR
Slide 8: Key Strategic Priorities
Capitalize on our unique leadership position to widen our competitive advantages in the marketplace Continue to: Drive market share gains in our core leasing and capital markets businesses Enhance depth and breadth of our Global Corporate Services business Enrich our operating platform (IT, Research
Slide 9: Mergers & Acquisitions
9 See slide 30 for footnotes. — — — $1.475 billion purchase price or $1.3 billion net of the present value of expected tax benefits Approximately 8x multiple2 of net purchase price to GWS 2014 calendar year adjusted EBITDA with run-rate synergies Expected cost synergies of $35 million Anticipate clo
Slide 10: GWS - Transaction Rationale
GWS - TRANSACTION RATIONALE GWS furthers our strategy of creating real advantages for occupier clients by aligning every aspect of how they lease, own, use and operate real estate to enhance their competitive position Facilities Management has been CBRE’s fastest growing and most stable line of busi
Slide 11: GWS - Complementary Outsourcing Clients
GWS - complementary Outsourcing clients Industrial Life Sciences Technology Financial Services Healthcare Other Balanced Client Mix 9% 2% 15% 35% 9% 30% CBRE - GCS 24% 13% 20% 18% 6% 19% CBRE - GCS & GWS
Slide 12: GWS - Combined View of Fee Revenue Mix
GWS - COMBINED VIEW OF FEE REVENUE MIX Total Fee Revenue: $3,742 Combined Total Fee Revenue: $8,7434 5.4x Acquisition solidifies a more stable, resilient long-term growth-oriented revenue and earnings profile See slide 30 for footnotes. Contractual Sources 3 $798 (21%) Contractual Sources 3 $4,337 (
Slide 13: Q1 2015 Business Line Revenue
Revenue ($ in millions) Contractual Revenue Sources Leasing Capital Markets Other Global Corporate Services1 Asset Services1 Investment Management Appraisal & Valuation Leasing Sales Commercial Mortgage Services Development Services Other Total Gross Revenue Q1 2015 $ 695 $ 252 $ 110 $ 108 $ 447 $ 3
Slide 14: Key Takeaways
CBRE leads an industry with strong underlying growth dynamics Positioned to continue our track record of long-term growth Our business model continues to significantly evolve Contractual fee revenue has increased 5.4x from 2006 to 2014 including pro-forma GWS Contractual fee revenue and Leasing, whi
Slide 15: Appendix
APPENDIX : CBRE
Slide 16: Global Corporate Services
Global Corporate Services (GCS) revenue excludes associated sales and leasing revenue, most of which is contractual. As of December 31, 2014; includes affiliates. Per International Association of Outsourcing Professionals (IAOP). New 26 Expansions 19 Renewals 13 Historical revenue1 Full service offe
Slide 17: Asset Services
Historical revenue1 overview Key strategic accounts ($ in millions) Asset Services revenue excludes associated sales and leasing revenue, most of which is contractual. As of December 31, 2014; includes affiliates. Asset Services operates buildings for investors Highly synergistic with property leasi
Slide 18: Investment Management
CAPITAL RAISED1 Performance-driven global real estate investment manager More than 500 institutional clients Equity to deploy: $5.7 billion1,2 Co-Investment: $141.4 million2 Assets under Management (AUM) overview ($ in billions) As of 3/31/2015 See slide 30 for footnotes. ($ in billions) INVESTMENT
Slide 19: Appraisal & Valuation
Premier clients ($ in millions) 134,500+ assignments in 2014 Euromoney Global Valuation Advisor of the Year Clients include lenders, life insurance companies, special servicers and REITs overview APPRAISAL & VALUATION Serving Clients Globally Historical revenue YTD Q1 $365 $385 $414 $461 $96 $108 20
Slide 20: Leasing
overview Recent transactions Fiduciary Trust Toronto-Dominion Bank Pfizer New York, NY Toronto, Canada Beijing, China 126,000 SF 231,000 SF 163,000 SF Advise occupiers and investors in formulating and executing leasing strategies Tailored service delivery by property type and industry/market special
Slide 21: Property Sales
Los Angeles, CA Australia France Wdf-3 Wood Hope Street, LLC Dalian Wanda Group Oxford Properties $200 Million $315 Million $224 Million Property Sale Property Acquisition Property Acquisition Recent transactions Strategic advisor (sellers and buyers) in commercial real estate #1 global market share
Slide 22: Commercial Mortgage Services
EMEA Phoenix, AZ SE US Office Portfolio ASR Dutch Prime Retail Fund Crown Properties Klein Family of Brazil $267 Million $91 Million $95 Million Equity Capital Raise Acquisition Financing Acquisition Financing Activity includes loan originations, loan sales and affiliates. As measured in dollar valu
Slide 23: Development Services
Green Water Knox Logistics Center Denver Union Station Shops at Dakota Crossing Austin, TX Mixed-Use Riverside, CA Industrial Denver, CO Mixed-Use Washington, DC Retail 2 Projects in process/pipeline1 overview Recent projects Premier brand in U.S. development 65+ year record of excellence Partner wi
Slide 24: Mandatory Amortization and Maturity Schedule
MANDATORY AMORTIZATION AND MATURITY SCHEDULE ($ in millions) $2,600.0 million revolver facility and term loan A mature in January 2020. As of March 31, 2015, the outstanding revolver balance was $110.0 million. Available Revolver As of March 31, 20151 Global Cash 2,811 9 22 25 34 59 460 800 425 - 50
Slide 25: Capitalization
CAPITALIZATION Excludes $54.4 million of cash in consolidated funds and other entities not available for Company use at March 31, 2015. Excludes $1,065.9 million of aggregate warehouse facilities outstanding at March 31, 2015. Excludes non-recourse notes payable on real estate of $43.2 million at Ma
Slide 26: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Twelve Months Ended ($ in millions) March 31, 2015 December 31, 2014 December 31, 2003 Normalized EBITDA $ 1,214.1 $ 1,166.1 $ 183.2 Adjustments: Carried interest incentive compensation expense 1 19.6 23.8 - Integration and other costs related to acquisitions 3.2 - 13.6 Cost containment expenses - -
Slide 27: Reconciliation of Net Income to Adjusted Net Income and EPS
Three Months Ended March 31, ($ in millions, except per share amounts) 2015 2014 Net income attributable to CBRE Group, Inc. $ 92.9 $ 67.7 Amortization expense related to certain intangible assets attributable to acquisitions, net of tax 11.1 13.7 Integration and other costs related to acquisitions,
Slide 28: Reconciliation of Gross Revenue to Fee Revenue
RECONCILIATION OF GROSS REVENUE TO FEE REVENUE Twelve Months Ended December 31, ($ in millions) 2014 Pro-forma 2006 Consolidated revenue 1 $ 12,457 $ 4,032 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work performed for clien
Slide 29: Reconciliation of Gross Revenue to Fee Revenue
Three Months Ended March 31, ($ in millions) 2015 2014 GCS revenue $ 694.9 $ 644.9 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work performed for clients 461.5 422.8 GCS fee revenue $ 233.3 $ 222.1 AS revenue $ 252.4 $ 224.2
Slide 30: Footnotes
FOOTNOTES Slide 18 1. Excludes global securities business. 2. As of March 31, 2015. Slide 23 1. As of December 31 for each year presented. 2. In Process figures include Long-Term Operating Assets (LTOA) of $0.2 billion for Q1 15, $0.3 billion for Q4 14, $0.9 billion for Q4 13, $1.2 billion for Q4 12