Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Presentation (March 2006)
32 slides from Cbre's investor presentation, Mar 14, 2006
Slide 1: CB Richard Ellis Investor Presentation March 2006
CBRE CB RICHARD ELLIS Investor Presentation March 2006
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: Industry Overview
Industry Overview
Slide 4: Favorable Trends — Investment Sales
Favorable Trends — Investment Sales CBRE CB RICHARO ELUS Investment Sales » Investor demand continues fo exceed the available ‘supply of properties globally * Capital flows into commercial real estate continue at high levels * CBRE's U.S. market share expanded fo 18% in 2005, reflecting a 10.8 perce
Slide 5: Favorable Trends — Leasing
Favorable Trends — Leasing CBRE {yy Renin = te ein Forecast Leasing Markets mt @: Solid corporate hiring and strong net i 5 absorption of commercial real estate ° ® amid favorable economic and business ‘ s conditions % Rent increases in most major office markets across the US. e iP PPP PPh Pe Pe + I
Slide 6: Company Overview
CBRE Company Overview
Slide 7: The World Class Commercial Real Estate Services Provider
The World Class Commercial Real Estate Services Provider CBRE > 100 years Leading Global » 50 counties Brand > #1 in key cities in U.S., Europe and Asia > #1 commercial real estate brokerage > #1 appraisal and valuation Broad Capabilities > #1 property and facilities management > #2 commercial mortg
Slide 8: Global Reach & Local Leadership
Global Reach & Local Leadership CBRE by Region Market Positions Global Investment Newsvork Management London Los Angeles Chicago Sydney Paris Washington, D.C. Madrid Americas KKK KKK KK Singapore CBRE is unique in offering customers global coverage and leading local expertise.
Slide 9: Diversified Blue Chip Client Base
Diversified Blue Chip Client Base CBRE 2005 Revenue by Client Type Representative Clients Government shore investors | Other Mitsubishi lord ef onshore nesters | om fitsubishi ZED china Eau’ \ Ly Feealth. nc Opportunity Fands a A citigrou, ». a poyneen CalPERS = Lloyds TSB CRrebit suisst™ Carpanies
Slide 10: Full Services Platform
CBRE Full Services Platform CB RIOHARO ELIS FY 2005 Americas Revenue Advisory Services Outsourcing Services Revenue Revenue Soe. Generation Manages properties for Contractual Leasing and sales Commission owners Comprehensive corporate Contractual realestate services Mortgage brokerage Commission and
Slide 11: Fragmented Industry
CBRE Fragmented Industry CB RIOHARO ELS $24 Billion US Commercial Real Estate Services Industry SobProviders 250% Other 3rd Panty 581% The market has grown at a 4.2% CAGR from 1995 to 2005. Source Extra pate igs nd manogenat etnates 68 125105 ‘Sg eset manogoree 10
Slide 12: Superior Platform Drives Outperformance
CBRE Superior Platform Drives Outperformance oe tile Competitive Landscape FY 2002 - 2005 CAGR CBRE") JLL Bicies Best in 52% Business t cere ) Services Global Reach —_ eee cae stk TC usinessia) —___. Seties: Fenmt ere 8 (190 Wo mk (© Sg ard aes npn es Oca npn ) Dranp ead eo AN ACH JOP CK, FO, ELVA M
Slide 13: Key Growth Strategies
CBRE Key Growth Strategies 2
Slide 14: Growth Drivers
Growth Drivers INDUSTRY TRENDS Increased capital alloc: to real estate Institutional ownership of real estate Improving leasing fundamentals CBRE CB RICHARO ELLIS RELATED STRATEGY > Leverage demographic-driven investment trends and globalization of capital flows > Leverage expertise across all prope
Slide 15: Growth Drivers (continued)
CBRE Growth Drivers (continued) CB RICHARO ELIS INDUSTRY TRENDS RELATED STRATEGY > Single point-of-contact management . > Emphasize muti-marketicross-border capabilites Comorete outsourcing > Focus on Fortune 500 penetration > Invest in enabling IT platforms: > Capitalize on cross-selling opportunit
Slide 16: Expanding Global Platform Through In-Fill Acquisitions
Expanding Global Platform Through In-Fill Acqu CBRE Ns CB RICHARO ELL ro SAS (France) ‘comport Ft out ana Raocaton 02,2005, Dalgish Unites Kington) Retail Advisor Services ‘4, 2005, Futter & stuz (Aust) Fetal Advisor Senices 102, 2005, TKOMA Wapan) ‘vison Senices ‘or, 2008 neta (usta) ‘Valuation 4,
Slide 17: Grow Investment Management Business
CBRE Grow Investment Management Business CE RICHARD ELUS Real Estate Institutional Ownership CBRE’s Assets Under Management Snem Snone lo 38 SE & ws 79 —_— wm $2 y $50 8351 $373 da sid Ms. 500 26 1 vee8 1909 amo ao 201203 “mOH 205 sees 1908 me) aol ooo nS mod ans Substantial cross-selling of service
Slide 18: Investment Management Business
Investment Management Business CBRE CB RICHARO ELUS Global Strategy / Fund Matrix DEDICATED TEAMS. MAIN CHARACTERISTICS Strategy % Debt Typical Structure Coinvestment ‘Compounded Annual Growth Rate for Assets Under Management”? CBRE Income Stream MANAGED ACCOUNTS | _STRATEGICPARTNERS | _ SPECIAL SIT
Slide 19: Financial Overview
CBRE CB RICHARD ELUS Financial Overview 18
Slide 20: Consistent Long Term Growth
Consistent Long Term Growth CBRE onions) sige samt $170 1992 199810341005 t09B 1987 19081892000 OT 002 20032004 205 ees Orgaric mmm Acquisition —e_Normalized EBTDA (1) Nomalzed EBITDA exches merger ceed ae ter nexecuring cos, sii regan costs oe onene PO-eted comansainexpence CBRE h col istently outp
Slide 21: 2005 Business Performance Highlights
2005 Business Performance Highlights CBRE (in millions, except EPS) Revenue Normalized EBITDA" ae es 2654 613 ‘9003 Net Income, as adjusted" EPS, as adjusted'? * A $7298 Ea sm = me i 2004 2005 Record 2005 Performance 1. Nomatzed EBITDA, net income, as aqused and eamings per share, as ajusted exclude
Slide 22: 2005 Revenue Breakdown
2005 Revenue Breakdown Yearended December3t, 2o05 2004 | Change = mrs 8074 B Bh cessing 11058 9863 2 THE Poopetyand Facies Management ams 1853 8 WE sppraisatand Valuation mms 1884 ES TF Commercial Mortgage Brokerage 140.4 1067 32 Ti tnvestnent Managemest 1a 807 4 EE ote: a3 23 2 Teta 2910s 23651 2 C
Slide 23: Normalized EBITDA Margins
Normalized EBITDA Margins CBRE 200%. Full Year 2001 m2002 12003 2004 2005 2005 EBITDA margin improved 24% compared to 2004 Notes: ‘Nommalzod E6TDA and normatzed EBITDA marghs exclude one-tme merger related and other nen-recurng cost, Instr integration ests and one-time PO-elated compensation expense
Slide 24: Debt Highlights
Debt Highlights CBRE CB RICHARO ELL in millions) sono 90x s700 80x 70% $600 60x 500 50x $400 40x $00 30 om 20 100 10x 2 00x 2001 2002 2008 Ea 205 erated lena $115 $131 $183 $300 $461 (area amt SST eo Hal Debio Normatzed EBOA | Notes: ‘Normalized EBITDA excludes mer related and other nn-recuing costs
Slide 25: Capitalization
Capitalization CBRE As of (Sin mions) 12/31/2005 12/31/2004 Variance Cash 449.3 2569 192.4 Serior secured term loantranche B 265.2 2774 (11.9) 41'"% senior subordinated notes 163.0 205.0 42.0) 9°4% senior notes 130.0 130.0 - Other debt! 19.0 22.5 3.5) Total debt 577.2 634.6 (7.4) Stockholders’ equit
Slide 26: 2005 Normalized Internal Cash Flow
2005 Normalized Internal Cash Flow CBRE > Strong cash flow generator » $110 million, or 82.7% improvement from prior year > Low capital intensity > Utilization of internal cash flow » Debt reduction » Co-investment activities » In-fill acquisitions Net Income, as adjusted Internal Cash Flow 1. Repre
Slide 27: Key Drivers of Earnings Growth
CBRE Key Drivers of Earnings Growth CO RICHARD ELIS Revenue Deleveraging Significant Growth Balance Sheet EPS Growth © Market > Operating >» Redemption >» 15% to 20% growth leverage of high growth > Market » Fixed cost interest rate share gains controls bonds > In-fill » Scalable acquisitions overhe
Slide 28: Remember Who We Are
Remember Who We Are CBRE CB RICHARD ELUS We are: > A growth-oriented business services enterprise with more than 200 offices around the world > Afull 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 term
Slide 29: Appendix
CBRE Appendix
Slide 30: Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss)
Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) CBRE ‘Year Ended December 31, {Sin millions) 7005 2004 2003 202 200%") emia eT = af _ ee Ve free tied mw os ; an a ae = ia Slope ace: a5) a0 paras lel am 7 ew Ad reer age We loa re RS ar (hese ig lr at ae ‘tom February 20, 2001 (ncep
Slide 31: Reconciliation of Net Income to Net Income, As Adjusted
Reconciliation of Net Income to Net Income, As Adjusted CBRE CB RICHARO ELLIS {Sin ilions) ‘Net income Loss: ‘Amotization expense elated io net revenue backlog ed ‘equi in the Insignia acqustion net of tax ‘Merger-lated charges related tothe Insignia sequistion, net oftax apn, Integration costs rela
Slide 32: Searchable text section of graphics shown above
Searchable text section of graphics shown above [L OGO] Investor Presentation March 2006 [L OGO] Forward Looking Statements 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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