Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Presentation (May 2007)
32 slides from Cbre's investor presentation, May 8, 2007
Slide 1: Investor Presentation May 2007
Investor Presentation May 2007
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 growth momentum in 2007, future operations and future financial performance. These statements shoul
Slide 3: Company Overview
CBRE CB RICHARD ELLIS Company Overview
Slide 4: CBRE at a glance: #1 commercial real estate services
(1) As of 3/31/2007. (2) Combined Revenue includes $764.7 million for TCC for the period April 1, 2006 through December 20, 2006. (3) EBITDA excludes one-time items, including merger-related costs, integration costs related to acquisitions, and a loss on trading securities acquired in the TCC acquis
Slide 5: Milestones
Milestones #520 on Fortune 1000 for 2006 Selected by Forbes as one of 130 Global Superstars Ranked #16 among BusinessWeek’s top 50 companies of 2006 Third best performer in S&P 500 since IPO* #1 brand for six consecutive years Global Real Estate Advisor of the Year Global Outsourcing 100 Property Ad
Slide 6: Global Reach & Local Leadership
Global Reach & Local Leadership Individuals/Partnerships 2006 Revenue by Client Type (2) Corporate REITS Insurance Companies/Banks Pension Funds Government Other Conduits/Wall St. Firms Equity/Opportunity Funds Offshore Investors 2006 Revenue by Region (1) Diversified revenue spread across broad bas
Slide 7: #1 Position in a Fragmented Market
#1 Position in a Fragmented Market $26 Billion US Commercial Real Estate Services Industry (1) U.S. Market Share Top 4 = 20.7% Share Source: Full year 2006 external public filings and management estimates. (1) Excludes investment management and development. Includes reimbursable expenses. The market
Slide 8: Outsourcing Services
Outsourcing Services 85 of the Fortune 100 Sq. ft. Millions CAGR: 10% Global Property and Facilities Management1 Global Project Management Corporate Services Outsourcing Services is approximately 23% of total combined Q1 2007 TTM revenues (1) Represents combined data for CBRE and TCC. Does not inclu
Slide 9: Global economic expansion fuels improved leasing markets
Global economic expansion fuels improved leasing markets and higher rents In U.S., office rents rose 5.6% yoy in 1Q 07(1) High leasing levels in Europe produce strong rent gains in London, Paris, Madrid and a growing number of cities In Asia, market conditions are tight as significant corporate expa
Slide 10: Investment sales and capital flows
(1) Source: IREI and ULI Includes TCC revenue for the period December 20, 2006 through December 31, 2006. Includes TCC revenue for the period December 20, 2006 through March 31, 2007. Source: Real Capital Analytics Investment Sales Strong capital flows and rising rents continue to underpin the inves
Slide 11: Investment Management
Investment Management Americas EMEA Asia Pacific Investment Management growing faster than the 13% growth in institutional ownership of real estate1 CBRE’s Assets Under Management ($ in Billions) Revenue ($ in Millions) (1) Source: IREI and ULI CAGR: 41% 127.3 228.0 CAGR: 26% Carried Interest Invest
Slide 12: 2005 – 2007 YTD In-Fill Acquisitions
2005 – 2007 YTD In-Fill Acquisitions Easyburo SAS CPMS Artequation DTZ Queensland McCann Property and Planning Rafter and O’Hagan DTZ Australia Bridge Real Estate Advocate Consulting Group, Inc. CB Richard Ellis Charlotte, LLC Columbus Commercial Realty Project Advantage, Inc. The Polacheck Company
Slide 13: Trammell Crow Company Acquisition
Trammell Crow Company Acquisition Business is comprised of: Global Corporate Services (GCS) and Development Services GCS consists of the following businesses: Property & Facilities Management Project Management Corporate Advisory Transaction Management Statistics # of Employees – 7,600 # of Offices
Slide 14: Development Services Overview
Development Services Overview Development Services is a merchant development business Co-invests alongside equity of institutional partners Develops properties for user/investor clients on a fee basis without co-investing in the projects Does not seek to own development projects long term Revenue an
Slide 15: Financial Overview
CBRE CB RICHARD ELLIS Financial Overview 14
Slide 16: Consistent Long Term Growth
Consistent Long Term Growth CBRE has consistently outpaced industry growth. Normalized EBITDA excludes merger-related and other non-recurring costs, integration costs related to acquisitions, one-time IPO-related compensation expense and gains/losses on trading securities acquired in the TCC acquisi
Slide 17: 2006 Record Business Performance Highlights
2006 Record Business Performance Highlights1 2005 2006 26% (In millions, except EPS) 41% Revenue Normalized EBITDA2 51% 48% Net income, as adjusted2 EPS, as adjusted2,3 Performance is based on 2006 CBRE standalone plus TCC activity from December 20, 2006 to December 31, 2006. Normalized EBITDA, net
Slide 18: 2006 Revenue Breakdown
2006 Revenue Breakdown 2006 CBRE Standalone1 2006 Combined (1) CBRE standalone includes TCC revenue for the period December 20, 2006 through December 31, 2006. 34% 27% 23% 6% 3% 5% 1% 2% 37% 31% 14% 7% 4% 6% 1% 1% ($ in millions) 2006 Combined 2006 2005 % Change Leasing 1,709.0 1,478.9 1,105.8 34 Sa
Slide 19: Q1 2007 Record Business Performance Highlights
Q1 2007 Record Business Performance Highlights1 2006 2007 62% (In millions, except EPS) 93% Revenue Normalized EBITDA2 62% 59% Net income, as adjusted2 EPS, as adjusted2,3 Q1 2006 does not include TCC activity Normalized EBITDA, net income, as adjusted and earnings per share, as adjusted exclude one
Slide 20: Normalized EBITDA Margins
Normalized EBITDA Margins(1) CBRE has consistently improved its EBITDA margin. Normalized EBITDA margins exclude merger-related and other non-recurring costs, integration costs related to acquisitions, one-time IPO-related compensation expense and gains/losses on trading securities acquired in the T
Slide 21: Debt Highlights
($ in millions) Debt Highlights Notes: Normalized EBITDA excludes merger-related and other non-recurring costs, integration costs related to acquisitions, one-time IPO-related compensation expense and gains/losses on trading securities acquired in the TCC acquisition. 2006 combined normalized EBITDA
Slide 22: Capitalization
Capitalization Represents notes payable on real estate in Development Services that are recourse to the Company. Excludes non-recourse notes payable on real estate of $369.0 million and $329.6 million at March 31, 2007 and December 31, 2006, respectively. Excludes $27.2 million and $104.0 million of
Slide 23: Strong cash flow generator
Strong cash flow generator Low capital intensity Utilization of internal cash flow Debt reduction Co-investment activities Development In-fill acquisitions 1 Represents capital expenditures, net of concessions. Q1 2007 TTM Combined Normalized Internal Cash Flow ($ millions) 373 Net Income, as adjust
Slide 24: 2007 Key Drivers of Earnings Growth
2007 Key Drivers of Earnings Growth Revenue Growth Margin Expansion Market growth Market share gains Cross selling In-fill acquisitions Synergy savings Operating leverage Fixed cost controls Scalable overhead structure Deleveraging Balance Sheet Term loan pay down Revenue growth, margin expansion an
Slide 25: 506% Increase in Share Price Since IPO
506% Increase in Share Price Since IPO CBRE’s Stock Performance vs. the S&P 500 3rd best performer in the S&P since IPO (1) 5/2/07 (1) As of 3/30/07 -100% 0% 100% 200% 300% 400% 500% 600% CBG S&P 500
Slide 26: Appendix
CBRE CB RICHARD ELLIS Appendix
Slide 27: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) ($ in millions) Q1 2007 TTM 2006 2005 2004 2003 2002 Normalized EBITDA 730.4 652.5 461.3 300.3 183.2 130.7 Less: Merger-related and other non-recurring charges 31.8 - - 25.6 36.8 - Loss(Gain) on trading securities acquired in the Tra
Slide 28: Reconciliation of Net Income to Net Income, As Adjusted
Reconciliation of Net Income to Net Income, As Adjusted Year Ended Dec. 31, ($ in millions) 2006 2005 Net income 318.6 217.3 Amortization expense related to net revenue backlog and incentive fees acquired in acquisitions, net of tax 9.7 - Integration costs related to acquisitions, net of tax 4.6 4.5
Slide 29: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Reconciliation of Normalized EBITDA to EBITDA to Net Income ($ in millions) 2007 2006 Normalized EBITDA 161.9 84.0 Adjustments: Integration costs related to acquisitions 12.1 1.3 Loss on sale of trading securities acquired in the Trammell Crow Company acquisition 33.7 - Merger-related costs 31.8 - E
Slide 30: Reconciliation of Net Income to Net Income, As Adjusted
Reconciliation of Net Income to Net Income, As Adjusted ($ in millions) 2007 2006 Net income 12.0 36.9 Amortization expense related to net revenue backlog, incentive fees and customer relationships acquired, net of tax 6.4 2.3 Integration costs related to acquisitions, net of tax 7.3 0.9 Loss on sal
Slide 31: Reconciliation of Net Income to Net Income, As Adjusted TTM
(a) Amortization expense related to net revenue backlog, incentive fees and customer relationships acquired1 (b) Integration costs related to acquisitions1 (c) Loss on trading securities acquired in the Trammell Crow Company acquisition1 (d) Merger-related costs1 (e) Costs of extinguishment of debt1
Slide 32: CBRE
CBRE CB RICHARD ELLIS 31
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