Slide 1: First Quarter 2015 Earnings Conference Call
Cbre group, inc. First Quarter 2015: Earnings Conference Call April 29, 2015
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, our adjusted earnings per share expectations, our
Slide 3: First Quarter 2015 Global Results
First Quarter 2015 GLOBAL Results Strong momentum continued in Q1 2015 Seeing impact of our strategy Enhancing service offering Strengthening operating platform Augmenting talent pool Balance sheet strength and flexibility Q1 results Americas served as a growth catalyst APAC performed well, while EM
Slide 4: Q1 2015 Performance Overview
Q1 2015 Performance Overview Revenue Fee Revenue1 EBITDA Normalized EBITDA2 Margin on Fee Revenue3 Net Income4 EPS4,5 Q1 2015 $ 2,053 M $ 1,455 M $ 246 M $ 247 M 17.0% GAAP $ 93 M Adjusted $ 106 M GAAP $ 0.28 Adjusted $ 0.32 Q1 2014 $ 1,861 M $ 1,328 M $ 197 M $ 199 M 15.0% GAAP $ 68 M Adjusted $ 82
Slide 5: 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 6: Americas Revenue
($ in millions) Global Corporate Services & Asset Services1 Leasing Sales Gross Fee2 Q1 2015 $ 530 $ 160 $ 329 $ 208 USD3 p 14% p 10% p 18% p 31% Local Currency3 p 15% p 12% p 19% p 1. 32% Global Corporate Services (GCS) and Asset Services revenue excludes associated leasing and sales revenue, most
Slide 7: EMEA Revenue
($ in millions) Global Corporate Services & Asset Services1 Leasing Sales Gross Fee2 Q1 2015 $ 327 $ 156 $ 65 $ 60 USD3 -1% -2% -19% -6% Local Currency3 p 9% p 9% -6% p 6% EMEA revenue Total Q1 2015 revenue down 5% in USD or up 6% in local currency 1. Global Corporate Services (GCS) and Asset
Slide 8: Asia Pacific Revenue
($ in millions) Global Corporate Services & Asset Services1 Leasing Sales Gross Fee2 Q1 2015 $ 89 $ 31 $ 52 $ 41 USD3 p 24% p 4% 0% -7% Local Currency3 p 30% p 12% p 8% p 3% Asia Pacific revenue Total Q1 2015 revenue up 7% in USD or 15% in local currency 1. Global Corporate Services (GCS) and Asset
Slide 9: Global Corporate Services
New 26 Expansions 19 Renewals 13 Global Corporate Services Most new clients in any Q1 period Strong growth internationally Announced two acquisitions Global WorkPlace Solutions ESI (energy management on 180 million square feet) Q1 2015 TOTAL CONTRACTS Facilities Management Transaction Services Proje
Slide 10: Global Investment Management
Q1 Q1 Global Investment management 3 CAPITAL RAISED1 ASSETS UNDER MANAGEMENT (AUM) ($ in billions) ($ in billions) FINANCIAL RESULTS Revenue Rental Carried Interest Asset Management Acquisition, Disposition & Incentive Capital to deploy: $5.7 billion4 Co-Investment: $141.4 million4 ($ in millions) Q
Slide 11: Development Services
Q1 Q1 Revenue Pro-forma Revenue3 Development Services 1 $121.5 million of co-investments at the end of Q1 2015 $11.9 million in repayment guarantees on outstanding debt balances at the end of Q1 2015 FINANCIAL RESULTS PROJECTS IN PROCESS/PIPELINE ($ in billions) ($ in millions) 2 See slide 15 for fo
Slide 12: Key Takeaways
KEY TAKEAWAYS Major accomplishments in Q1 2015: Announced our largest strategic acquisition in eight years to advance our occupier strategy Continued to enhance competitive position through people and platform investments Again generated outstanding financial results Good underlying momentum in our
Slide 13: Supplemental Slides and GAAP Reconciliation Tables
SUPPLEMENTAL SLIDES AND GAAP RECONCILIATION TABLES
Slide 14: Footnotes
FOOTNOTES Slides 5 1. “Fee Revenue” comprises gross revenue less client reimbursed costs largely associated with our employees who are dedicated to client facilities and subcontracted vendor work on behalf of our clients. 2. Normalized EBITDA excludes certain carried interest incentive compensation
Slide 15: U.S. Market Statistics
U.S. Market Statistics U.S. VACANCY U.S. ABSORPTION TRENDS (in MSF) 4Q14 1Q15 2Q15 F 4Q15F 4Q14 1Q15 2013 2014 2015F Office 14.0% 13.9% 13.9% 13.7% 13.9 15.2 36.0 52.7 32.3 Industrial 10.3 % 10.1% 10.1% 10.1% 75.5 64.4 241.2 225.8 133.5 Retail 11.4% 11.2% 10.8% 9.9% 10.4 8.3 29.1 24.7 50.6 Source: C
Slide 16: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule ($ in millions) 1. $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 -
Slide 17: Capitalization
CAPITALIZATION 1. Excludes $54.4 million of cash in consolidated funds and other entities not available for Company use at March 31, 2015. 2. Excludes $1,065.9 million of aggregate warehouse facilities outstanding at March 31, 2015. 3. Excludes non-recourse notes payable on real estate of $43.2 mill
Slide 18: Reconciliation of Gross Revenue to Fee Revenue
Three Months Ended March 31, ($ 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 19: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Three Months Ended March 31, ($ in millions) 2015 2014 Normalized EBITDA $ 246.7 $ 198.8 Adjustments: Integration and other costs related to acquisitions 3.2 - Carried interest incentive compensation expense to match current period revenues 1 (2.8) 1.6 EBITDA 246.3 197.2 Add: Interest income 2.3 1.6
Slide 20: Reconciliation of Net Income to Adjusted Net Income
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,