Cbre Group Inc · NYSE:CBRE
Cbre — Merger or Acquisition (November 2011)
14 slides from Cbre's merger presentation, November 2011
Slide 1: ING REIM Closing Presentation
CBRE Group, Inc. ING REIM Closing Presentation November 2011
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 and financial performance, as well as the successful integration of the acqu
Slide 3: Participants
Participants Brett White Chief Executive Officer Gil Borok Chief Financial Officer Jim Groch Chief Investment Officer Nick Kormeluk Investor Relations CBRE | Page 3
Slide 4: Why This Deal Matters
Why This Deal Matters It fulfills our 20-year objective of being the premier, #1 firm in each of our six primary business lines. It accelerates our objective to further balance our earnings between transactional and contractual business. Like each transformative acquisition before it, our “bes
Slide 5: Why The Fit Is Perfect
Why The Fit Is Perfect Combination of two very successful businesses Extremely low-risk, low-levered properties across the ING REIM European direct real estate platform Minimal overlap Highly complementary client profiles Highly complementary product offering CBRE | Page 5
Slide 6: Why This Is the Perfect Fit (cont.)
Why This Is the Perfect Fit (cont.) Assets Under Management ($ Billions) Continental Global Products UK Asia Americas Europe Funds of Funds Separate 3.4 0.9 9.8 5.0 2.9 Accounts 7.3 6.8 Global Securities 2.0 0.7 0.2 Core/Core 3.0 Plus Funds 16.5 1.2 1.6 20.0 0.2 Value-Add/ 0.4 7.3 Opportunistic N/A
Slide 7: Why the Funds Complement Our REIM Platform
Why the Funds Complement Our REIM Platform ING REIM Europe AUM primarily consists of core assets with low or modest leverage Diverse platform with sector and country-specific funds, as well as Pan-European funds Open-ended vehicles with stable valuations create recurring fees on gross asset va
Slide 8: Why the Funds Complement Our REIM Platform (Cont.)
Why the Funds Complement Our REIM Platform (Cont.) ING REIM Asia AUM primarily consists of value-added and opportunistic properties Successfully executed large fund takeovers in the region representing $1.8 billion in AUM Fees based on invested capital similar to CBRE Investors’ existing funds
Slide 9: Why the Funds Complement Our REIM Platform (Cont.)
Why the Funds Complement Our REIM Platform (Cont.) ING Clarion Securities AUM primarily consists of global real estate-related securities Management fees based on daily market values Active manager with global client base Provides real-time asset allocation and liquidity for commercial real
Slide 10: Impact on CBRE Financial Results
Impact on CBRE Financial Results $ in Billions 2010 Results - Stand Alone & Combined $0.3 $5.1 $5.1 $0.1 $0.7 $0.7 Revenue Normalized EBITDA Revenue Normalized EBITDA Combined CBRE ING REIM 1 1. Based on 2010 results as calculated by ING REIM management. CBRE | Page 10
Slide 11: How We Financed the Acquisition
How We Financed the Acquisition $400 million in Term D Loan due 2019 at LIBOR plus 350 (no floor) $400 million in Term C Loan due 2018 at LIBOR plus 325 (no floor) $400 million in cash and minimal short term revolver borrowings, of which $150 million has been incurred to date Pro-forma for t
Slide 12: What Else You Need to Know
What Else You Need to Know CBRE is now the world’s largest commercial real estate investment management company with approximately $95 billion in AUM (pro-forma as of September 30, 2011) ING Clarion Real Estate Securities transaction closed on July 1, 2011 for consideration of $324 million and c
Slide 13: Appendix
é Appendix CBRE
Slide 14: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Reconciliation of Normalized EBITDA to EBITDA to Net Income CBRE Group Inc. for the Year Ended December 31, ($ in millions) 2010 Normalized EBITDA1 $ 681.3 Less: Write-down of impaired assets 11.3 Cost containment expenses 15.3 Integration and other costs related to acquisitions 7.2 1 EBITDA 647.5 A