Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Debt Investor Presentation (March 2008)
48 slides from Cbre's debt investor presentation, Mar 11, 2008
Slide 1: $300 million Senior Secured Term Loan A-1 Public Presentation to Lenders
Exhibit 99.1 $300 million Senior Secured Term Loan A-1 Public Presentation to Lenders March 2008
Slide 2: Forward Looking Statements
Page 2 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 as estimates only and actual results may ultimately differ from these estimates. Except t
Slide 3: CBRE
CBRE CB RICHARD ELLIS
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Slide 6: Transaction Overview
Page 3 Transaction Overview Transaction Overview
Slide 7: Transaction Summary
Page 4 Transaction Summary CBRE is exercising the accordion provision in its existing credit agreement to syndicate a $300 million Term Loan Proceeds from the new loan will be used to fund working capital needs, pay expenses associated with the syndication and for general corporate purposes Both Moo
Slide 8: Capitalization
Page 5 Capitalization 1. Revolving credit facility of $600.0 million, funded in the amount of $227.1 million at 12/31/07. 2. Excludes $255.8 million of non-recourse warehouse facility, $42.6 million of non-recourse revolving credit facility in Development Services as well as $459.4 million of non-re
Slide 9: CBRE
CBRE CB RICHARD ELLIS
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Slide 12: Industry Overview and Company Highlights
Page 6 Industry Overview and Company Highlights Industry Overview and Company Highlights
Slide 13: The World's Premier Commercial Real Estate Service Provider
Page 7 The World’s Premier Commercial Real Estate Service Provider Transactional Business Outsourcing Business Investment Management Business #1 in property sales with $180.1 billion #1 in leasing with $84.1 billion #1 in transaction value with $264.2 billion Corporate services relationships with 27
Slide 14: #1 Position in a Fragmented Market
Page 8 #1 Position in a Fragmented Market $27 Billion Commercial Real Estate Market in the U.S. ¹ Source: 2007 external public filings and CBRE management estimate as of December 31, 2007. 1. Excludes global investment management and development services. CBRE 12.7% Self Providers 25.0% JLL 2.8% GBE
Slide 15: Diversified Client Base
Page 9 Diversified Client Base CBRE 2007 Revenue by Client Type Corporate 34% Individuals / Partnerships 11% Pension funds 14% Other 16% Insurance companies / Banks 19% REITS 6% Diversified Client Base
Slide 16: Global Reach
Page 10 Global Reach FY 2007 Revenue ¹ FY 2007 Normalized ² EBITDA Global Reach Americas 61% Asia Pacific 9% Global Investment Management 6% EMEA 22% Development Services 2% Americas 51% Asia Pacific 9% Global Investment Management 12% EMEA 27% Development Services 1% 1. Includes revenue from discon
Slide 17: Segment Revenue Performance
Page 11 1,842 2,173 2,507 3,690 551 707 934 1,314 160 187 355 549 94 127 228 348 Segment Revenue Performance ¹ Americas EMEA Global Investment Management Asia Pacific Americas 2004 2005 2006 2007 EMEA 2004 2005 2006 2007 Asia Pacific 2004 2005 2006 2007 Global Investment Management 2004 2005 2006 20
Slide 18: Revenue Breakdown and Broad Services Platform
Page 12 1. Includes revenue from discontinued operations, which totaled $2.1 million for the year ended December 31, 2007. 2. Includes Trammell Crow Company’s operations for the period from the 12/20/2006 acquisition through 12/31/2006. 3. Includes Trammell Crow Company’s operations prior to the acq
Slide 19: Leasing Update
Page 13 Leasing Update CBRE Global Leasing Revenue Leasing as % of FY 2007 Total Revenue Business Update Fundamentals of leasing business remain strong, despite slowing in US and EMEA in the fourth quarter of 2007 In U.S. rational levels of new construction in 2008 should support continued increase
Slide 20: Sales Update
Page 14 Sales Update Institutional Investment in Real Estate Sales as % of FY 2007 Total Revenue Business Update Challenging credit markets impacted investment sales activities Continued high level of capital allocation to real estate Rising rents support investment sales underwriting Exchange rates
Slide 21: Outsourcing Services Update
Page 15 23% Outsourcing Services Update CBRE Global Square Footage Managed ¹ Outsourcing as % of FY 2007 Total Revenue ² Business Update Continue to significantly expand our contractual work for major corporate clients by leveraging the strength of the legacy TCC outsourcing capabilities and cross s
Slide 22: Global Investment Management Update
Page 16 Global Investment Management Update Annual Revenue Investment Management as % of FY 2007 Revenue Annual EBITDA $57.1 $68.4 $94.0 $99.3 $126.3 $259.2 Assets Under Management Global Investment Management Update ($ in millions) $28.0 $101.7 $88.7 $127.3 $228.0 $347.9 2002 2003 2004 2005 2006 20
Slide 23: Development Services Update
Page 17 Development Services Update Projects in Process / Pipeline Development Services as % of FY 2007 Revenue Business Update Develops properties for user/investor clients on a fee and/or co-investment basis $136 million FY 2007 revenue $134 million co-invested at YE 2007 $7 million of recourse de
Slide 24: CBRE
CBRE CB RICHARD ELLIS
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Slide 27: Financial Overview
Page 18 Financial Overview Financial Overview
Slide 28: Consistent Long Term Growth
Page 19 Consistent Long Term Growth ¹ Target EBITDA Margin = 20% 2007 Pro-Forma EBITDA Margin = 17.1% 2 4 5 3 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% 16.2% 16.1% $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 19
Slide 29: TCC Synergies Have Exceeded Estimates
Page 20 TCC Synergies Have Exceeded Estimates Synergies Achieved $65.0 $90.0 Estimated Synergies ¹ Actual Synergies 1. From CBRE press release at time of transaction. ($ in millions)
Slide 30: Normalized Internal Cash Flow
Page 21 Normalized Internal Cash Flow Strong cash flow generator Low capital intensity Utilization of internal cash flow: • Co-investment activities • Development • In-fill acquisitions • Debt reduction • Share repurchases Capital expenditures of $80 million expected for 2008 2007 Normalized Interna
Slide 31: CBRE
CBRE CB RICHARD ELLIS
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Slide 34: Summary Terms and Timing
Page 22 Summary Terms and Timing Summary Terms and Timing
Slide 35: Indicative Terms for New $300 million Term Loan A
Page 23 Indicative Terms for New $300 million Term Loan A – 1 Borrower: Facility Size Maturity Interest Rate Margin Voluntary Amortization Schedule ² Guarantees ³ Security ³ Financial Covenants ³ Affirmative Covenants ³ Negative Covenants 3 Mandatory Prepayments ³ Indicative Terms for New $300 milli
Slide 36: Transaction Timetable
Page 24 Transaction Timetable March 2008 Holiday Transaction Timetable S M T W T F S Holiday March 11 th Launch Syndication March 18 th Distribute Documentation March 25 th Commitments due from Lenders Comments due on Credit Documentation (5 pm EDT) March 27 th Close and Fund the Transaction
Slide 37: CBRE
CBRE CB RICHARD ELLIS
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Slide 40: Public Q&A
Page 25 Public Q&A Public Q&A
Slide 41: CBRE
CBRE CB RICHARD ELLIS
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Slide 44: Appendix
Page 26 Appendix Appendix
Slide 45: Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss)
Page 27 Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) 1. Includes interest income related to discontinued operations of $0.01 million for the twelve months ended December 31, 2007. 2. Includes depreciation and am
Slide 46: Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss)
Page 28 Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) 1. Includes activity related to discontinued operations of $0.4 million of depreciation and amortization, $1.8 million of interest expense, $1.6 million of pr
Slide 47: Reconciliation of Net Income to Net Income, As Adjusted
Page 29 Reconciliation of Net Income to Net Income, As Adjusted Reconciliation of Net Income to Net Income, As Adjusted ($ in millions) Twelve Months Ended December 31, 2007 Net Income $390.5 Add: Amortization expense related to net revenue backlog, 24.9 incentive fees and customer relationships acq
Slide 48: CBRE
CBRE CB RICHARD ELLIS
CB Richard Ellis Group — Debt Investor Presentation (March 2008) on 6ix