Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Presentation (May 2005)
36 slides from Cbre's investor presentation, May 12, 2005
Slide 1: CB Richard Ellis Investor Presentation May 2005
CBRE CB RICHARD ELLIS May 2005 Investor Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements CBRE This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements should be considered as estimates only and actual results may ultimately differ from these estimates. Except to
Slide 3: Participants
CB RICHARD ELUS Participants CBRE Brett White - President Ken Kay — Senior Executive Vice President and Chief Financial Officer
Slide 4: Overview
CBRE CB RICHARD ELLIS Overview
Slide 5: Real Estate Services Provider
| Real Estate Services Provider comcuanocue CBRE » 99 years > 50 countries > #1 in key cities in U. Leading Global Brand Europe and Asia > #1 commercial real estate brokerage > #1 appraisal and valuation Broad Capabilities > #1 property and facilities management » #2 commercial mortgage brokerage >
Slide 6: Global Reach & Local Leadership
Global Reach & Local Leadership CBRE Leadi Market Po: 2004 Revenue by Region ions Global New York Pacific vestors London Los Angeles Chicago Sydney Paris Washington, D.c. Madrid ‘Americas SES etark SAS Singapore CBRE offering customers global coverage and leading local expe
Slide 7: Diversified Blue Chip Client Base
CBRE Diversified Blue Chip Client Base CB RICHARD ELUS 2004 Revenue by Client Type Representative Clients ral i. government “her EDP (=) Cardinal corporate 7) Lloyds TSB Oppartity x CalPERS Aberdeen nr citigroup. lotchore Investors Conduits? Pension Funds Insurance companies? Incviaist Banks Partner
Slide 8: Full Services Platform
Full Services Platform CBRE CB RICHARD ELUS 2004 Americas Revenue Advisory Services Outsourcing Services Revenue Resenen: Generation Generation Leasing, sales, divestitures Commission " 4 Manages pronerte= (al Comins owners Comprehensive corporate Contractual real estate services Mortgage brokerage
Slide 9: Fragmented Industry
Fragmented Industry $23 Billion US Commercial Real Estate Services Industry (1) U.S. Market Share Top Share ceRE 59% cewa2% Tec 18% OE 1.4% sett Providers 258 JUL 1.0% other #2 Panty or The market has grown at a 4.3% CAGR from 1994 to 2004. once: Eremalpsoie ge aa marapemester tate a of 129104, "Tec
Slide 10: Superior Platform Drives Outperformance
CBRE Superior Platform Drives Outperformance pm den Allee Competitive Landscape Q1 2002 TTM - Q1 2005 TTM CAGR: CBRE LL Tec beatin Clase @E 40% Business Global Reach ces aL Tee| BUSINESS) Services Platform FYOS PIE (as of 566) Our full-service, global platform has allowed us to outperform competitor
Slide 11: Capitalize on Favorable Industry Conditions
Percentage CBRE Capitalize on Favorable Industry Conditions CO RICHARD ELUS Improving Outlook 0 18 10 C2) en 4 joss 1909 0020) 2002032004 2ONSE © DONE © «2007E © ORE 2000 a Vacaney Rate —e-Rert Rates 10
Slide 12: The Americas — Market Dynamics
THE AMERICAS — Market Dynamics CBRE CB RICHARD ELUS CANADA usA—cHicaco The investment make fr ofice and industial properties remains very stong, Newindustil constuction continues to ‘verall stable economic growth acioss Canada, especially in the natural rezource sacs. Sting investment matt adivitywi
Slide 13: EMEA — Market Dynamics
EMEA — Market Dynamics CBRE SWEDEN EASTERN EUROPE Healthy economic and realestate Strong economio growth and maturing prospects boost investmantin property matcets translates into Property matteo the tind highest record levels of investment Fev in he EU-16 in 2008 GERMANY Economy continues to hamper
Slide 14: Asia-Pacific — Market Dynamics
ASIA-PACIFIC — Market Dynamics CBRE JAPAN Continue to draw domestic and offshore funds, and the interest in Japanese property/ REITs remains very keen cua Vigorous demand for office and industrial space from financial services, insurance industry, logistics, retailing and technology companies SOUTH
Slide 15: Markets Clustering at Bottom of Cycle
CBRE Markets Clustering at Bottom of Cycle CORICHARD ELUS Rents Rents Rental Rental Falling Bottoming Growth Growth Out Accelerating Maturing Brussels Milan Amsterdam Hong Kona@) im (5 London *. Munich’ Washington D.C. O-O new vork Stockholm + The markets do not nacassanly move along the curve in th
Slide 16: Key Growth Strategies
CBRE CB RICHARD ELUS Key Growth Strategies 5
Slide 17: Growth Drivers
Growth Drivers INDUSTRY TRENDS Increased vendor consolidation Corporate outsourcing Increased capital allocations to real estate Institutional ownership of real estate CBRE CB RICHARD ELUS RELATED STRATEGY Capitalize on crass-selling opportunities Leverage geographic diversity of platform Capitalize
Slide 18: Promote Cross-Selling
CBRE Promote Cross-Selling CB RICHARD ELIS V\)) Washington Mutual Facies Management off iccseiinisidion gf A Transaction Management m3 Project Management ct) Strategic Planning SOSeON | Revenues Location Consutting > 23.4M square feet of facilities managed, 60% growth since 2000 > 117% growth in pro
Slide 19: Service Provider Consolidation
CBRE Service Provider Consolidation CORICHARD ELLIS W Average Revenue Increase of 54% * Youremnscodhands 4985 2005 Multiple Service Providers CBRE > Exclusive Transaction Management Provider Occasional Brokerage Transactions * Additional Services - Property Management - Consulting - Appraisals/Valua
Slide 20: Grow Investment Management Business
Grow Investment Management Business Real Estate Institutional Ownership ot : sa03 a 930 onze $570.79 7 sonnst202) seme 2514] CBRE’s Assets Under Management ws se4 1908 967 1908 1950 2m 20M 20M 2003 204 some 1 20m m1 meme Substantial cross-selling of services currently drives approximately $50 millio
Slide 21: Financial Overview
CBRE CB RICHARD ELLIS Financial Overview 20
Slide 22: Consistent Long Term Growth
Consistent Long Term Growth CBRE CB RICHARD ELUS 92,462 $2385 unt Sit $1,170 7. 120 ‘260 1 c BE 2 Z L ae ee i es ee feo2 1893 fo0d 1685806 a7 tees Toe 2000 m0 04 TMot 0 Organic mmm Acquistion —s—Normalzed EBIDA CBRE has consistently outpaced industry growth. 24
Slide 23: Q1 2005 Business Performance Highlights
Q1 2005 Business Performance Highlights CBRE CB RICHARD ELUS (in millions except EPS) Revenue Normalized EBITDAt Be $5083 saain ee, $527 Normalized Net Incomet Normalized EPS*? 23% $130 ca a1 2004 [a1 2005 Record Qi 2005 Performance 41. Normalized EBITDA, netincome and esmings par share exclude cre-
Slide 24: Q1 2005 Revenue Breakdown
Q1 2005 Revenue Breakdown A% 1% in milion 2005 2004 % Change Hm Sales e210 1387 at Leasing 2055 © 192.2 7 Property and Facilities Management 502 434 16 TB Appraisal and Valuation a4 30.8 33 mm Commercial Mortgage Brokerage 3141 tee 105 i Investment Management 214 169 25 Other 72 a8 89 Total ee3 4410
Slide 25: Q1 2005 Trailing Twelve Months Normalized EBITDA Margins
CBRE Q1 2005 Trailing Twelve Months Normalized EBITDA Margins OS no ce 160. oo TM 1 Quarter ERTOANATN fz0a] 08 fz cy 7004 a 2005 Notes Continued margin improvement due to: > Robust revenue growth > Operating feverage > EBITDA margins Improved by approximately 25% above the same quarter last year EBI
Slide 26: Capitalization
CBRE Capitalization SBne As of @hitors) 3131005 121312004 Variance Cash 1878 256.9 (99.1) Tranche B loan 2744 277A (3.0) Other debt! 212 25 (1.3) 9 senior notes 130.0 130.0 - 11% senior subordinated notes” 179.0 205.0 (26.0) Total debt 604.3 634.6 (30.3) Stockholders! equity 5795 560.0 195 Total cap
Slide 27: Q1 2005 Debt Highlights
Q1 2005 Debt Highlights CBRE CB RICHARD ELUS {in millions) Total Debt samams reewma ae1ns Total Debt to Total Capitalization eee eine seis 26
Slide 28: Q1 2005 Trailing Twelve Months Normalized Internal Cash Flow
CBRE Q1 2005 Trailing Twelve Months Normalized Internal Cash Flow conicrano cure > Strong cash flow generator nian 200 +9 0! 180 > Low capital intensity 160 10 | oe DBA cap Ex > Utilization of internal cash flow | 12° 100 » Debt reduction ‘a »® Co-investment activities 80 © In-fill acquisitions 40 2
Slide 29: Key Drivers of Earnings Growth
Key Drivers of Earnings Growth CBRE Revenue Margin Deleveraging Significant Growth Expansion Balance Sheet EPS Growth » Market +), Operating Ff minimum == |» High teens growth leverage $50 million to low 20% w Marne » 12% -14% debt annual EPS share gains annual Paydown seth EBITDA targeted » T%-9% g
Slide 30: Remember Who We Are
Remember Who We Are We are: > A growth-oriented business services enterprise with more than 200 offices around the world > A full service provider with a diverse suite of services to address any commercial real estate need > More than 2X the size of our nearest competitor in terms of 2004 revenue »
Slide 31: Appendix
CBRE CB RICHARD ELUS Appendix 30
Slide 32: Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss)
Reconciliation of Normalized EBITDA to EBITDA to Net CB RICHARD ELUS Income (Loss) CBRE Three Months Ended March 31 (6 inriions) 2005 2004 Normalized EBITDA 527 25.4 Less Merger-related charges related to the : Mee Insignia acquisition Integration costs related to the Insignia ff Le acquisition EBIT
Slide 33: Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss)
Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) CBRE CB RICHARD ELUS iomitions) Traling Twahe Morin ‘ee Ended Desenber Uh 2005. 20 ae 200 ae Normalized EBITDA mre sa18 003 1932 sear Less: Margar-related charges related to 168 ery 28 268 the Insignia acaustion Integration cost elat
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Searchable text section of graphics shown above [ LOG O] May 2005 Investor Presentation For ward Looking Statements [LOGO] This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements should be considered
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