Slide 1: CBRE Group, Inc. Second Quarter 2012 Earnings Conference Call
CBRE Group, Inc. Second Quarter 2012 Earnings Conference Call July 31, 2012
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, operations, financial performance, business outlook and our ability to inte
Slide 3: Conference Call Participants
Conference Call Participants Brett White Chief Executive Officer Bob Sulentic President Gil Borok Chief Financial Officer Nick Kormeluk Investor Relations
Slide 4: Business Overview
Business Overview Highlights: Total Company revenue increased 12% (13% excluding discontinued operations in 2011) to $1.6 billion in Q2 2012 versus Q2 2011 The Americas achieved 13% and Asia Pacific achieved 7% overall revenue growth in Q2 2012 versus Q2 2011 Outsourcing experienced double-digit rev
Slide 5: Recent assignments and transactions
UNITED STATES PJ Finance Company, LLC CBRE Capital Advisors served as financial advisor to PJ Finance Company, LLC, on the recapitalization of its 32 property multifamily portfolio and the restructuring of its $475M CMBS loan. In addition, $23M of new equity was raised with a joint venture between S
Slide 6: Q2 2012 Performance Overview
Q2 2012 Performance Overview Q2 2012 Q2 2011 Revenue1 $1,601.1 million $1,423.6 million Net Income2 GAAP $75.9 million Adjusted $88.0 million GAAP $61.2 million Adjusted $67.0 million EPS2,3 GAAP $0.23 Adjusted $0.27 GAAP $0.19 Adjusted $0.21 EBITDA4 $211.8 million $166.1 million Normalized EBITDA4,
Slide 7: Revenue Breakdown 2nd Quarter 2012
Revenue Breakdown 2nd Quarter 2012 1. Includes revenue from discontinued operations of $1.4 million and $2.4 million for the three and six months ended June 30, 2011, respectively. 34% 30% 16% 7% 6% 4% 1% 2% ($ in millions) 2012 2011 1 % Change 2012 2011 1 % Change Property & Facilities Management 5
Slide 8: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule $ millions 1. $700.0 million revolver facility matures in May 2015. As of June 30, 2012, the outstanding revolver balance was $52.8 million. As of June 30, 2012 1 0.0 250.0 500.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Term Loan A Term Loan A - 1 Ter
Slide 9: Capitalization
Capitalization 1. Excludes $146.2 million and $208.1 million of cash in consolidated funds and other entities not available for Company use at June 30, 2012 and December 31, 2011, respectively. 2. Net of original issue discount of $10.3 million and $11.0 million at June 30, 2012 and December 31, 201
Slide 10: Outsourcing
Outsourcing CAGR 13% 1. Represents combined data for CBRE and TCC; does not include joint ventures and affiliates. Q2 2012 Wins 24 new 21 renewals 9 expansions Highlights: 54 contracts signed in Q2 2012, the second highest Company total ever 24 new contracts in Q2 2012 sets a new quarterly record We
Slide 11: Sales, Leasing and Outsourcing Revenue - Americas
Sales, Leasing and Outsourcing Revenue - Americas 27% 5% 23% 5% ($ in millions) Outsourcing Sales Leasing 12% 13% 2011 2012
Slide 12: Sales, Leasing and Outsourcing Revenue - EMEA
Sales, Leasing and Outsourcing Revenue - EMEA (2)% (12)% 3% (17)% ($ in millions) Outsourcing Sales Leasing 3% 0% 2011 2012
Slide 13: Sales, Leasing and Outsourcing Revenue - Asia Pacific
Sales, Leasing and Outsourcing Revenue – Asia Pacific (15)% 7% 4% 6% ($ in millions) Outsourcing Sales Leasing 8% 5% 2011 2012
Slide 14: Development Services
Development Services Highlights: $89.2 million of co-investments at the end of Q2 2012 $15.0 million in recourse debt to CBRE and repayment guarantees at the end of Q2 2012 In Process figures include Long-Term Operating Assets (LTOA) of $1.6 billion for 2Q 12, $1.5 billion for 4Q 11, $1.6 billion fo
Slide 15: Global Investment Management
Global Investment Management ($ in billions) ($ in millions) CAGR 20% CAGR 24% 1. Includes revenue from discontinued operations of $5.5 million for the twelve months ended December 31, 2011. 2. Includes revenue from discontinued operations of $1.4 million and $2.4 million for the three and six month
Slide 16: Global Investment Management Pro-forma Normalized EBITDA
Global Investment Management Pro-forma Normalized EBITDA For the three months ended June 30, 2012 and 2011, the Company recorded net carried interest compensation expense pertaining to future periods of $0.6 million and $5.3 million, respectively. For the six months ended June 30, 2012 and 2011, the
Slide 17: Business Outlook
Business Outlook The cyclical recovery in commercial real estate continues despite a slow, uneven economic recovery Outsourcing is expected to deliver strong, consistent growth Total leasing growth rates remain modest Global investment sales will continue to be highly dependent on regional market co
Slide 18: GAAP Reconciliation Tables
GAAP Reconciliation Tables CBRE Page 19 CBRE
Slide 19: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Reconciliation of Normalized EBITDA to EBITDA to Net Income 1 Includes EBITDA related to discontinued operations of $0.8 million for the three months ended June 30, 2011. 2 Includes depreciation and amortization related to discontinued operations of $0.2 million for the three months ended June 30, 2
Slide 20: Reconciliation of Net Income to Net Income, As Adjusted
Reconciliation of Net Income to Net Income, As Adjusted ($ in millions, except for per share data) 2012 2011 Net income attributable to CBRE Group, Inc. 75.9 $ 61.2 $ Integration and other costs related to acquisitions, net of tax 7.2 3.9 Amortization expense related to ING and TCC customer relation