Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Presentation (August 2009)
30 slides from Cbre's investor presentation, Aug 25, 2009
Slide 1: CB Richard Ellis Group, Inc. Investor Presentation August 2009
CB Richard Ellis Group, Inc. Investor Presentation August 2009
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 momentum in 2009, future operations and future financial performance. These statements should be co
Slide 3: Unmatched Strength
Unmatched Strength Includes affiliate offices As of June 30, 2009 Based on 2008 revenues versus Jones Lang LaSalle Scale and Diversity 1.9x nearest competitor3 Thousands of clients, 88% of Fortune 100 $138.8 billion of transaction activity in 2008 No client comprises >3% of revenues Broad Capabiliti
Slide 4: Widely Recognized As The Global Industry Leader
Widely Recognized As The Global Industry Leader First and only commercial real estate services company in the Fortune 500; among Most Admired Companies in real estate industry Global Advisor of the Year: third time in four years #8 outsourcing company across all industries and #1 in commercial real
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: Diverse Client Base
Diverse Client Base Diversified revenue spread across broad base of clients with no concentration 2008 Revenue by Client Type Corporations 39% Insurance Co's/Banks 23% Pensions Funds/P F Advisors 11% Individuals/Partnerships 9% REITs 5% Opportunity Funds 4% Government 3% Conduits/Wall Street Firms 1
Slide 7: Geographic Diversification
Geographic Diversification Reflects Trammell Crow Company revenue contributions beginning on December 20, 2006 LTM 6/30/09 revenue was $4.4 billion #1 commercial real estate services firm in each of the major regions of the world LTM 6/30/09 Revenue2 2006 Revenue1 Americas 62% EMEA 23% Asia Pacific
Slide 8: Key Service Lines
Key Service Lines CBRE CB RICHARD ELLIS
Slide 9: Outsourcing Services
Outsourcing Services Management fees include property management, facilities management and project management fees. Does not include transaction revenue associated with outsourcing activities. Reflects contributions from Trammell Crow Company beginning on December 20, 2006 CoreNet, 2009 Deloitte, 2
Slide 10: #1 Provider of Every Outsourced Real Estate Service
#1 Provider of Every Outsourced Real Estate Service Clients Consulting Property/Facilities Management Project Management Transaction Management Global execution of transactions with a portfolio-wide focus Optimize portfolio Lease administration services Multiple-transaction focus Full service outsou
Slide 11: Leasing
Leasing Global Leasing Revenue ($ in Millions) 1. Includes Trammell Crow Company’s revenue for the period from the 12/20/2006 acquisition date through 12/31/2006. 2. Does not include affiliate offices 1 CAGR =20% More than 4,6002 leasing professionals worldwide Tailored service delivery by property
Slide 12: Sales
Sales Global Sales Revenue ($ in Millions) 1. Includes Trammell Crow Company’s revenue for the period from the 12/20/2006 acquisition date through 12/31/2006. 2. Does not include affiliate offices 1 CAGR = 11% Key Facts More than 1,3002 investment sales specialists worldwide Specialization across al
Slide 13: Restructuring Services Group
Restructuring Services Group Distressed Deal Volume1 ($ in Billions) 1. Source: RCA Troubled Assets Radar, July 2009 Our Process Single-point service offering leveraging CBRE’s advisory, analysis and execution expertise Integrated solutions for owners, creditors, debtors, etc. through every stage of
Slide 14: Global Investment Management: CBRE Investors
Global Investment Management: CBRE Investors GIM Revenue ($ in Millions) CAGR =19% Assets Under Management (US$ Billions) CAGR =19% Key Facts1 $36.4 billion in assets under management $85.2 million co-investment 1. As of June 30, 2009 $99 $126 $259 $28 $102 $89 $68 $94 2003 2004 2005 2006 2007 2008
Slide 15: Global Investment Programs
Global Investment Programs Description Q2 2009 Statistics Typical Fee Structure Separate Accounts $16.4 billion of assets under management Management fees Transaction fees Incentive fees Sponsored Funds $15.5 billion of assets under management Management fees Transaction fees LP profits Carried Inte
Slide 16: Development Services: Trammell Crow Company
Development Services: Trammell Crow Company Development Revenue1 ($ in Millions) 1. Includes Trammell Crow Company’s operations prior to the acquisition on December 20, 2006 2. As of June 30, 2009 CAGR =14% $6.7 billion in process/pipeline $88.3 million co-investment Only $12.8 million of recourse d
Slide 17: The Market Environment
The Market Environment CBRE CB RICHARD ELLIS
Slide 18: Outsourcing Market Conditions
Outsourcing Market Conditions Robust global RFP activity 25% increase in new client contracts versus 2008 Square footage growth positive in Q2 2009 Lower corporate spending impacting projects and reimbursements Vacancy and consolidation also pressuring near-term results Positive long-term outlook
Slide 19: 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 2000Q3 2001Q1 2001Q3 2002Q1 2002Q3 2003Q1 2003Q3 2004Q1 2004Q3 2005Q1 2005Q3 2006Q1 2006Q3 2007Q1 2007Q3 2008Q1 2008Q3 200
Slide 20: Global Investment Market Conditions
Real Capital Analytics, July 2009 Global Investment Market Conditions Global Sales Volume by Region1 $- $20 $40 $60 $80 $100 $120 $140 $160 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 Billions Americas EMEA AsiaPac
Slide 21: Financial Performance
Financial Performance CBRE CB RICHARD ELLIS
Slide 22: Historical Revenue
Historical Revenue1 ($ 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 23: 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 24: Balance Sheet Management
Balance Sheet Management Proactively taking a methodical approach to improve our capital structure: deleveraging, less reliance on bank market and extending maturities Amended credit agreement completed March 24, 2009 Relaxation of leverage and coverage ratios Ability to buy back term loans at disco
Slide 25: CBRE Debt Covenants & Maturity Schedule
CBRE Debt Covenants & Maturity Schedule Covenant Hurdle 12/31/08 3/31/09 6/30/09 Leverage Ratio <4.25x1 3.28 2.78 2.47 Interest Coverage Ratio >2.00x1 4.72 5.89 5.36 Year Amount Due 2009 $6 million remaining 2010 $254 million Debt Covenants Required Debt Maturity Schedule Effective March 24, 2009
Slide 26: Capitalization
Capitalization Net of original issue discount of $14 million. Represents notes payable on real estate in Development Services that are recourse to the company. Excludes non-recourse notes payable on real estate of $567.1 million and $618.0 million at June 30, 2009 and March 31, 2009, respectively. E
Slide 27: Business Outlook
Business Outlook Summary: Significant operating leverage in business model following cost cuts Investment sales weak; still expect start of distressed activity this year Leasing expected to remain weak until economies begin to improve Outsourcing results should continue to be mixed in the near term
Slide 28: Investment Considerations
Investment Considerations World’s largest commercial real estate services provider Premier global brand Strong client relationships with significant recurring business Attractive business model Diversified geographic and service line offering Revenues from recurring services represent approximately
Slide 29: Appendix
Appendix CBRE CB RICHARD ELLIS
Slide 30: Reconciliation of Normalized EBITDA to EBITDA to Net (Loss) Income
Reconciliation of Normalized EBITDA to EBITDA to Net (Loss) Income Notes: Includes EBITDA related to discontinued operations of $1.2 million for the trailing twelve months ending June 30, 2009 and the year ended December 31, 2008 and $6.5 million for the year ended December 31, 2007. Includes intere
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