Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Presentation (May 2010)
27 slides from Cbre's investor presentation, May 25, 2010
Slide 1: CB Richard Ellis Group, Inc. Investor Presentation May 2010
CB Richard Ellis Group, Inc. Investor Presentation May 2010
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 future growth momentum, operations and financial performance. These statements should be considered
Slide 3: Unmatched Strength
Unmatched Strength Includes affiliate offices. As of March 31, 2010. Based on 2009 revenues versus Jones Lang LaSalle. Scale and Diversity 1.7x nearest competitor3 Thousands of clients, nearly 80% of Fortune 100 $97.2 billion of transaction activity in 2009 No client comprised >3% of revenues in 200
Slide 4: Current Milestones
Current Milestones1 # 13 outsourcing company across all industries; 4th consecutive year on the list # 1 brand for nine consecutive years First commercial real estate services company in the Fortune 500 U.S. EPA 2010 ENERGY STAR Partner of the Year Sustained Excellence Award (reflecting 3 consecutiv
Slide 5: Our Strategy
Our Strategy Provide a complete suite of market leading services to property owners and occupiers through a fully integrated global business platform and a managed account strategy
Slide 6: Geographic Diversification
Geographic Diversification #1 commercial real estate services firm in each of the major regions of the world LTM 3/31/2010 Revenue1 LTM 3/31/2010 revenue was $4.3 billion. Americas 62% Asia Pacific 13% EMEA 20% Global Investment Management 3% Development Services 2%
Slide 7: Revenue Diversification
Revenue Diversification Contractual revenue includes: Property & Facilities Management (14% in 2006 and 39% in LTM 2010), Appraisal & Valuation (7% in both 2006 and LTM 2010), Investment Management (6% in 2006 and 3% in LTM 2010), Development Services (1% in 2006 and 2% in LTM 2010) and Other (1% in
Slide 8: Global Objectives
Global Objectives Establish and maintain the leading position in every major world city. Establish and maintain the leading position in each service we provide. Maintain the most admired, highest quality brand. Recruit, hire and retain the finest people in our industry. Foster and maintain a culture
Slide 9: Key Service Lines & Market Environment
Key Service Lines & Market Environment
Slide 10: Revenue Breakdown 1st Quarter 2010
Revenue Breakdown 1st Quarter 2010 ($ in millions) 2010 2009 % Change Property & Facilities Management 420.6 396.4 6 Leasing 327.7 267.1 23 Sales 117.4 77.8 51 Appraisal & Valuation 70.0 62.4 12 Investment Management 31.2 35.5 -12 Development Services 16.7 19.9 -16 Commercial Mortgage Brokerage 14.8
Slide 11: Property and Facilities Management
Property and Facilities Management Revenue1 ($ in Millions) CAGR = 31% 2 Outsourcing Services Management fees include property management, facilities management and project management fees. Does not include transaction revenue associated with outsourcing activities. Includes Trammell Crow Company’s
Slide 12: #1 Provider of Every Outsourced Real Estate Service
#1 Provider of Every Outsourced Real Estate Service Clients Consulting Property/Facilities Management Project Management Transaction Management Global execution of transactions with a portfolio-wide focus Optimize portfolio Lease administration services Multiple-transaction focus Full service outsou
Slide 13: Leasing
Leasing Global Leasing Revenue ($ in Millions) Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. As of December 31, 2009. Does not include affiliate offices. 1 More than 4,7002 leasing professionals worldwide Tailored service delivery by proper
Slide 14: Leasing Market Outlook
Leasing Market Outlook forecast CBRE EA Office Rent Index; % change versus a year ago Office Vacancy rate; % U.S. Office Rent Forecast and Vacancy (15) (10) (5) 0 5 10 15 2000Q1 2000Q4 2001Q3 2002Q2 2003Q1 2003Q4 2004Q3 2005Q2 2006Q1 2006Q4 2007Q3 2008Q2 2009Q1 2009Q4 2010Q3 2011Q2 2012Q1 2012Q4 201
Slide 15: Sales
Sales Global Sales Revenue ($ in Millions) Includes Trammell Crow Company’s revenue for the period from December 20, 2006 through December 31, 2006. As of December 31, 2009. Does not include affiliate offices. 1 Key Facts More than 1,3002 investment sales specialists worldwide Specialization across
Slide 16: Recovery & Restructuring Services Group
Recovery & Restructuring Services Group Distressed Deal Volume1 Source: RCA Troubled Assets Radar, April 2010 Our Process Recapitalizations, loan sales/workouts, asset and portfolio valuations, asset management and repositioning and receivership services Currently marketing more than $6.0B of distre
Slide 17: Global Investment Management: CBRE Investors
Global Investment Management: CBRE Investors GIM Revenue ($ in Millions) CAGR =13% Assets Under Management ($ in Billions) CAGR =15% Key Facts1 $33.3 billion in assets under management $93.5 million co-investments As of March 31, 2010. 53 55 46 68 116 141 127 15 39 53 58 143 20 14 28 102 89 2003 200
Slide 18: Global Investment Programs
Global Investment Programs Description Q1 2010 Statistics Typical Fee Structure Separate Accounts $15.0 billion of assets under management Management fees Transaction fees Incentive fees Sponsored Funds $13.0 billion of assets under management Management fees Transaction fees LP profits Carried Inte
Slide 19: Development Services: Trammell Crow Company
Development Services: Trammell Crow Company Development Revenue1 ($ in Millions) Includes Trammell Crow Company’s operations prior to the acquisition of Trammell Crow Company on December 20, 2006. Also includes revenue from discontinued operations. In Process figures contain Long-Term Operating Asse
Slide 20: Financial Performance
Financial Performance CBRE CB RICHARD ELLIS
Slide 21: Historical Revenue
Historical Revenue1 ($ in Millions) No reimbursements are included for the period 1992 through 1996, as amounts were immaterial. Reimbursements for 1997 through 2001 have been estimated. For 2002 and forward, reimbursements are included. Includes Trammell Crow Company activity for the period Decembe
Slide 22: Historical Normalized EBITDA
Historical Normalized EBITDA1 ($ in Millions) Normalized EBITDA excludes merger-related and other non-recurring costs, integration costs related to acquisitions, cost containment expenses, one-time IPO-related compensation expense, gains/losses on trading securities acquired in the Trammell Crow Com
Slide 23: Mandatory Amortization and Maturity Schedule
$ millions 1,052 30 132 25 410 450 Approximately $225.1 million and $333.0 million of the revolver facilities mature in June 2011 and June 2013 respectively. As of 3/31/10 the outstanding revolver balance was $20.1 million. Mandatory Amortization and Maturity Schedule 0 0 1 1 - 200 400 600 800 1,000
Slide 24: Capitalization
Capitalization Net of original issue discount of $13.2 million and $13.5 million at March 31, 2010 and December 31, 2009, respectively. Represents notes payable on real estate in Development Services that are recourse to the Company. Excludes non-recourse notes payable on real estate of $747.8 milli
Slide 25: Business Outlook
Business Outlook Summary: Investment sales expected to show year over year growth Leasing should show growth consistent with employment recovery Outsourcing seems to be past recession-induced headwinds and should show modest growth for the rest of 2010 Global Investment Management and Development Se
Slide 26: Appendix
Appendix CBRE CB RICHARD ELLIS
Slide 27: Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss)
Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) Notes: Includes EBITDA related to discontinued operations of $16.9 million for the year ended December 31, 2008 and $6.5 million for the year ended December 31, 2007. Includes interest income related to discontinued operations of $0.
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