Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Q2 2005 Earnings Presentation
27 slides from Cbre's earnings presentation, Aug 2, 2005
Slide 1: Second Quarter 2005 Earnings Conference Call
Exhibit 99.2 Second Quarter Earnings Conference 2005 Call August 3, 2005
Slide 2: Forward-Looking Statements
Forward This actual any the of to 1 what this SEC’s ofpresentation results the presentation we Looking website forward-looking believe maycontains Statements ultimately (http://www.sec.gov), are which the include most statements statements differ directly references from that that comparable these f
Slide 3: Conference Call Participants
Conference Brett Ken Mike Shelley 2 Kay, White, Strong, Young, Senior Call President President, Director Participants Executive and EMEA of Chief Investor Vice President Executive Relations &Officer Chief Financial Officer
Slide 4: Q2 2005 Summary
Q2 2005 Market Strong Industry 3 top dominance profit/margin Summary and bottom leadership line results
Slide 5: Q2 2005 Performance Highlights
Revenue 11th Net Excluding Earnings Q2 GAAP Adjusted 1. 2. 4 All Net 2005 income straight EPS income $0.66 Performance Q2 totaled Per $0.70 one-time information totaled 2004 quarter Share2 $0.04 was $0.32 $672.2 Increase adjusted $50.4 1550% items, of119% Highlights double-digit ismillion, based mil
Slide 6: Q2 2005 Performance Highlights (continued)
Q2 2005 Performance Operating EBITDA EBITDA, 5 totaled excluding Income$106.5 income income, totaled excluding one-time Highlights million, $80.9 one-time costs, million, $67.6 (continued) totaled costs, million as compared $108.9 totaled higher million $83.3 to than $25.4 the million for million sa
Slide 7: Q2 Financial Results
Q2inFinancial ($ Revenue Cost Operating, Equity EBITDA One Merger-Related Integration IPO-Related Normalized 6 Time of millions) Income Services 672.2 106.5 Charges: Administrative Costs EBITDA Compensation Results 2005 in 550.9 39.0 Charges 338.7 2.4 Unconsolidated 2004 173 3.4 22 108.9 272.6 -(29)
Slide 8: YTD Financial Results
YTD ($ Revenue Cost Operating, Equity EBITDA One Merger-Related Integration IPO-Related Normalized 7 in Time of millions) 2005 Income Services 1,210.4 156.8 Charges: Administrative Financial Costs EBITDA Compensation 2005 in 49.0 Charges 606.7 991.9 4.8 Unconsolidated 2004 220 Results 8.9 161.6 496.
Slide 9: 2nd Quarter 2005 Revenue Breakdown
2005 2nd Quarter 38% 39% 2% 4% 7% 8% ($ Sales Leasing Property Appraisal Commercial Investment Other Total 8 inQuarter, millions) Revenue 672.2 261.3 12.2 ended 255.3 and and 8.3 Management 550.9 181.5 Mortgage 2005 Facilities Valuation 230.1 June 2005 Breakdown 47 19.3 22 4430, 2004 11 1,210.4 443.
Slide 10: Trailing Twelve Months EBITDA Margins
Trailing 16.0 2nd Significant 2005 2004 Robust On-going EBITDA Notes: 9 Quarter .14.2 11.1 12.0 revenue Twelve margins cost . .margin 8.0control growth .Months 4.0 improved exclude improvement . 0.0EBITDA .one-time by 28% due Margins merger-related from to: the same charges, quarter last integration
Slide 11: Q2 Earnings Per Share
Q2All 2004 IPO-related Amortization 2005 GAAP Insignia Loss Adjusted 1. 10 Earnings on $0.04 $0.66 EPS EPS extinguishment merger-related integration EPS information $0.10 $0.02 compensation Per of Insignia Share $0.03 $0.02 charges Dynamics1 is charges $0.14 $0.70 of net based expense debt revenue $
Slide 12: Consolidated Balance Sheets
Consolidated As ($ Cash Assets Restricted Receivables, Warehouse Property Goodwill Deferred Other Total 1. 11 Represents inofmillions) and assets assets, and compensation cash and cash receivable1 2,241.6 net equipment, Balance Freddie other equivalents 6/30/2005 5.8 320.0 349.9 9.2 intangible 2,271
Slide 13: Consolidated Balance Sheets (cont.)
Consolidated As ($ Current Liabilities Warehouse Senior 111/4% 9 Deferred Other Minority Stockholders’ Total 1. 2. 12 3/4% Represents Includes inofmillions) liabilities debt2 long-term secured senior senior liabilities, compensation interest non-recourse line 40.9 Balance the equity notes 6/30/2005
Slide 14: Capitalization as of June 30, 2005
AsJune Capitalization ($ Cash Senior 111/4% 93/4% Other Stockholders’ Total 1. at 13 Excludes inofmillions) 192.2 debt capitalization net debt1 secured senior 30, senior debt 588.3 2005. 256.9 $173.8 19.7 notes equity 396.1 6/30/2005 subordinated term 634.6 22.5 (64.7) million 130.0 1,223.6 377.7 lo
Slide 15: Strong Cash Flow Generator
Q2Excludes Strong Low Utilization Debt Co-investment 220 ($millions) Cap (30)1 D&A 43 170 Net 183 Internal 1. 14 2005 Income, 200 Ex capital reduction cash Cash 180 Trailing ofcapital flow intensity as 160 Flow internal activities adjusted 140 generator Twelve expenditures, 120 cash In-fill Months 1
Slide 16: 2005 Full Year Guidance
2005 Revenue Net Diluted 1. 15 Excluding income, Full earnings of Year $2.7 as residual Guidance adjusted, billion per share, one-time within as adjusted, Insignia the range growth and of debt $183 ofbuy-back approximately to $191 million1 charges45% of approximately to 52% resulting $14 inmillion a
Slide 17: Q2 2005 Segment Performance
Q2 $2005 (In Americas Revenue 14% EMEA Asia 15% Global 22% Normalized 65% 51% 33% 27% 16 2005 2004 $384.5 $108.3 $37.7 $20.4 $49.5 $9.0 $5.7 $4.8 Pacific millions) Investment Segment $13.6 $7.6 $6.1 $43.3 $15.9 $81.6 EBITDA $489.9Performance $123.1Management
Slide 18: Recent Wins
CBRE MetLife investment Canada management Knightsbridge Americas the Microsoft’s AIG EMEA Macquarie Asia Auckland 17 sale Tower Pacific Recent –of –Provide Represented one Goodman in –European services Pre-leased an Wins Estate of11- the project property most –Property for headquarters Arranged MetL
Slide 19: Market Outlook
Favorable Continued Continue Steady Measured 15 Vacancy 2000Q1 12 Forecast TWR Source: Availability 18 17 10 10 11 Rent 5recovery 81660TWR 2001Q1 rate, 915 to -5 4increases Trends robust 8Index Index, 2attract rate, 14 -10 70% Outlook 6-2 13 -15 in 2002Q1 % investment -4 %12 high U.S. in-6 change 11
Slide 20: Summary
RecordTrends Summary Strong Macro Investor financial 19 revenue, Performance confidence institutions EBITDA, bolstered Strongnet international by income the strengthening andinvestment earningsof per sales leasing share markets as fundamentals a result of improved and low long-term performance inter
Slide 21: Appendix
CBRE 20 (CB RICHARD ELLIS
Slide 22: Reconciliation: Three Months Ended June 30
Reconciliation Three ($ Amortization Merger-related Integration One-time Loss Net Diluted Weighted 21 inincome, income millions, on Months income extinguishment compensation average costs 50.4 asrelated Ended except of charges adjusted per 3.0 related Net shares share, to June share Income related n
Slide 23: Reconciliation: Normalized EBITDA
Reconciliation Three ($ Normalized Merger-related Integration IPO-Related EBITDA Add: Depreciation Less: Interest Loss Provision Net 22 inincome millions) on Months income expense extinguishment 106.5 for costs 50.4 EBITDA Compensation and income Ended 2005 of charges 39.0 3.0 13.4 related 3.0 amort
Slide 24: Reconciliation: Trailing Twelve Months EBITDA
Reconciliation Trailing ($ Normalized Merger-related Integration One-time EBITDA Add: Depreciation Less: Interest Loss Provision Net 23 inincome millions) on expense income extinguishment Twelve 353.0 compensation (benefit) costs (loss) EBITDA and Q2 of charges 133.2 9.6 Months 56.6 related amortiza
Slide 25: Reconciliation: TTM Reported Net Income
Reconciliation TTM ($ 180 1 9 3 143 Reported 170 Net (c) (b) (a) 245 millions) Amortization Income, 160 2nd140 Net Quarter As 120 Income ofAdjusted expense 100 Net 200580 Income Results 60 related 40to20Net to- Insignia Income,net Asrevenue Adjustedbacklog (b) Insignia merger-related and integration
Slide 26: Reconciliation: Regional Normalized EBITDA
Reconciliation Americas Three ($ Normalized Merger-related Integration One-time EBITDA Depreciation Less: Equity unconsolidated Operating 25 in millions) Months income 79.8 compensation EMEA income costs EBITDA and 21.3 Ended 2005 of (loss) charges subsidiaries related Asia amortization Normalized (
Slide 27: CB Richard Ellis
CBRE CB RICHARD ELLIS
CB Richard Ellis Group — Q2 2005 Earnings Presentation on 6ix