Slide 1: CBRE Group, Inc. Investor Presentation
March 2014 CBRE GROUP, INC. Investor Presentation
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 ability to successfully integrate businesses w
Slide 3: The Global Market Leader
THE GLOBAL MARKET LEADER GLOBAL LEADERSHIP WITH BROAD CAPABILITIES SCALE AND DIVERSITY LEADING GLOBAL BRAND Includes affiliate offices as of December 31, 2013. As of December 31, 2013. #1 leasing #1 investment sales #1 outsourcing #1 appraisal and valuation #1 commercial mortgage brokerage #1 commer
Slide 4: Our Client Service Model
OUR CLIENT SERVICE MODEL Provide a complete suite of premier services to property investors and occupiers across the globe.
Slide 5: Diversification
DIVERSIFICATION 2013 REVENUE1 BY CLIENT TYPE 2013 REVENUE1 BY BUSINESS SEGMENT 2013 revenue of $7.2 billion includes $9.4 million of revenue related to discontinued operations.
Slide 6: Revenue Diversification
REVENUE DIVERSIFICATION Contractual revenue includes: Property , Facilities and Project Management (14% in 2006 and 34% in 2013), Appraisal & Valuation (7% in 2006 and 6% in 2013), Investment Management (6% in 2006 and 8% in 2013), Development Services (1% in both 2006 and 2013) and Other (1% in bot
Slide 7: Acquisitions
ACQUISITIONS 2013 Approximately £385 million ($629 million) revenue3 Cash purchase price of approximately £265.5 million ($434 million4)5 Provides capability to self perform building technical engineering services in EMEA Adds expertise in critical environments Significant cross-selling opportunitie
Slide 8: Business Overview: 2013 Region Highlights
Asia Pacific Revenue ▲7% ▲15% in local currency Growth led by property sales (up 50% in local currency) 2013 Region Highlights BUSINESS OVERVIEW EMEA Revenue▲18%▲17% in local currency Continued resurgence in property sales Double-digit growth across most major business lines Americas Revenue ▲10% Do
Slide 9: Business Overview: Full Year 2013 Business Line Highlights
BUSINESS OVERVIEW Full Year 2013 Business Line Highlights Revenue ($ in millions) Leasing1 Property, Facilities & Project Management1 Sales Investment Management1 Appraisal & Valuation Commercial Mortgage Brokerage1 Development Services Other Total 20132 2,052.2 2,475.5 1,290.4 538.6 414.5 312.0 50.
Slide 10: Global Corporate Services (GCS)
GLOBAL CORPORATE SERVICES (GCS) Includes transaction revenue associated with GCS activities. These are also included within sales and leasing revenues. Transaction Management Project Management Facilities Management Consulting Q4 Full Year New 32* 96* Expansions 10 53 Renewals 13 61 Total potential
Slide 11: Asset Services
ASSET SERVICES ICONIC PROPERTIES UNDER MANAGEMENT HISTORICAL REVENUE1 PERCENT OF 2013 GLOBAL REVENUE Vietnam South Korea Birmingham, UK 2.0M SF 1.2M SF 800,000 SF Lim Tower Esiapolis Lifestyle Center The Cube KEY STRATEGIC ACCOUNTS ($ in millions) Includes transaction revenue associated with AS acti
Slide 12: Leasing
LEASING Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. GLOBAL LEASING REVENUE PERCENT OF 2013 GLOBAL REVENUE 1 ($ in millions) 2013 TRANSACTIONS Citigroup Hudson Pacific Properties Gogo, Inc. IBM W.W. Grainger 388-390 Greenwich Street Elemen
Slide 13: 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
Slide 14: Capital Markets
CAPITAL MARKETS Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. GLOBAL SALES REVENUE PERCENT OF 2013 GLOBAL REVENUE 1 ($ in millions) Commercial Mortgage Brokerage Property Sales 2013 TRANSACTIONS New York, NY Chicago Miami Singapore Spain Sw
Slide 15: Global Sales Transaction Volume
GLOBAL SALES TRANSACTION VOLUME
Slide 16: Appraisal and Valuation Services
APPRAISAL AND VALUATION SERVICES CLIENT TYPES: INSTITUTIONAL, LENDER, LIFE INSURANCE COMPANIES, SPECIAL SERVICERS, REITS, ETC. Largest Clients Americas Largest Clients EMEA Largest Clients Asia Pacific HISTORICAL REVENUE PERCENT OF 2013 GLOBAL REVENUE ($ in millions)
Slide 17: Global Investment Management
GLOBAL INVESTMENT MANAGEMENT See slide 27 for footnotes. PERCENT OF 2013 GLOBAL REVENUE 3 REALIZED SIGNIFICANT CARRIED INTEREST REVENUE IN 5 OF THE PAST 10 YEARS Year Carried Interest Revenue ($ in millions) 2004 -- 2005 $28.0 2006 $101.7 2007 $88.7 2008 $0.4 2009 -- 2010 $19.9 2011 $1.5 2012 -- 201
Slide 18: Global Investment Management: AUM and Capital Raised
GLOBAL INVESTMENT MANAGEMENT Q1 Q2 Q3 Q4 CAPITAL RAISED2, 3 ($ in billions) 5.0 Capital to deploy $4.0 Billion2, 3 Co-Investment $170.3 Million2 1 ASSETS UNDER MANAGEMENT (AUM) See slide 27 for footnotes. ($ in billions) AUM Change AUM Components2
Slide 19: Development Services
Houston, TX Office Minneapolis, MN Multi-Family Riverside, CA Industrial Denver, CO Mixed-Use Davenport (Orlando), FL Retail 2.0M SF 1.2M SF 800,000 SF 537,000 SF 387,000 SF DEVELOPMENT SERVICES 2 ($ in billions) Hess Tower Junction Flats I-215 Industrial Park Denver Union Station Posner Commons PRO
Slide 20: Historical Performance 1992–2013: Revenue
HISTORICAL PERFORMANCE 1992 – 2013 CAGR = 15% Average Annual Organic Growth of 9% REVENUE1 2 3 4 4 4 4,5 4 4 See slide 27 for footnotes. ($ in millions) 360 392 429 469 583 759 1,187 1,403 1,518 1,362 1,362 1,810 2,647 3,194 4,032 6,036 5,130 4,166 5,119 5,912 6,520 7,194 1992 1993 1994 1995 1996 19
Slide 21: Historical Performance 1992–2013: Normalized EBITDA and Margin
HISTORICAL PERFORMANCE 1992 – 2013 CAGR = 21% 2 3 4 4 4 4,5 4 4 ($ in millions) NORMALIZED EBITDA AND MARGIN1 See slide 27 for footnotes. 20 26 34 42 62 90 127 117 151 115 131 183 300 461 653 970 601 454 681 803 918 1,022 5.6% 6.6% 7.9% 8.9% 10.6% 11.9% 10.7% 8.4% 9.9% 8.4% 9.6% 10.1% 11.3% 14.4% 16
Slide 22: Mandatory Amortization and Maturity Schedule
As of December 31, 2013 MANDATORY AMORTIZATION AND MATURITY SCHEDULE $ in millions $1,200.0 million revolver facility matures in March 2018. As of December 31, 2013, the outstanding revolver balance was $142.5 million. 1 Global Cash Available Revolver 1,505 40 40 68 255 223 2 352 198 800 - 250.0 500
Slide 23: Capitalization
CAPITALIZATION Excludes $32.4 million and $94.6 million of cash in consolidated funds and other entities not available for Company use at December 31, 2013 and 2012, respectively. Net of original issue discount of $9.5 million at December 31, 2012. Represents notes payable on real estate in Developm
Slide 24: 2014 Outlook
Market sentiment is positive Good momentum in most of our businesses Property sales expected to grow by double digits due to capital influx and expansion into secondary markets Occupier outsourcing poised for continued double-digit growth Leasing expected to grow in the mid- to high-single digits wi
Slide 25: Appendix
APPENDIX co (CBRE | INVESTOR PRESENTATION
Slide 26: Reconciliation of Normalized EBITDA to EBITDA to Net Income
RECONCILIATION OF NORMALIZED EBITDA TO EBITDA TO NET INCOME Notes: Includes EBITDA related to discontinued operations of $7.9 million for the year ended December 31, 2013, $5.6 million for the year ended December 31, 2012, $14.1 million for the year ended December 31, 2011, and $16.4 million for the
Slide 27: Global Investment Management Reconciliation
Global Investment Management Includes EBITDA from discontinued operations of $1.4 million and $0.5 million for the years ended December 31, 2013 and 2012, respectively. Includes depreciation and amortization expense related to discontinued operations of $0.5 million and $0.3 million for the years en
Slide 28: Footnotes
FOOTNOTES Slide 9 Contains recurring revenue aggregating approximately 60% and 59% of total revenue for the twelve months ended December 31, 2013 and 2012, respectively. Includes $9.4 million and $5.7 million of revenue from discontinued operations for the twelve months ended December 31, 2013 and 2