Cbre Group Inc · NYSE:CBRE
Cbre — Investor Presentation (November 2015)
27 slides from Cbre's investor presentation, Nov 20, 2015
Slide 1: Forward-Looking Statements
This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including qualitative and quantitative statements regarding our future growth momentum, operations, financial performance, business outlook and our ability to in
Slide 2: The global market leader
the global market leader CBRE is the premier global provider of integrated services to commercial real estate investors and occupiers Assets Under Management (AUM) as of September 30, 2015. As of December 31, 2014, includes affiliates. Property and Corporate Facilities under Management. As of Septem
Slide 3: The leading global brand
The Leading global brand CBRE is recognized as the foremost commercial real estate authority Fortune 500 company since 2008; ranked #321 in 2015 Ranked #1 brand for 14 consecutive years Top real estate services and investment company in “green” rankings Global Real Estate Advisor of the Year four ye
Slide 4: CBRE serves investors and occupiers
CBRE Serves investors and occupiers CBRE’s integrated, best-in-class offering creates value for clients at every stage of the life cycle
Slide 5: Track record of long-term growth
Track record of long-term growth See slide 27 for footnotes Revenue 16% CAGR Normalized EBITDA1 18% CAGR From 2003 to TTM Q3 2015: YTD Q3 2015 vs. YTD Q3 2014: Adjusted EPS2 24% USD 30% Local Currency Revenue 14% USD 21% Local Currency
Slide 6: Positioned for long-term growth
Consolidation Core leasing and capital markets remain highly fragmented Outsourcing Still in early stage of penetration with occupiers Drives largely recurring leasing revenues Capability With scale and focus, we continue to extend our globally integrated offering Positioned for long-term growth CBR
Slide 7: Key strategic priorities
Capitalize on our unique leadership position to widen our competitive advantages in the marketplace Continue to: Drive market share gains in our core leasing and capital markets businesses Enhance depth and breadth of our Occupier Outsourcing business Enrich our operating platform (IT, Research, Mar
Slide 8: Mergers & acquisitions strategy
Transactions generally fall into two categories: Strategic in-fill acquisitions sourced principally by lines of business Larger, transformational transactions driven by macro strategy On September 1, 2015, CBRE acquired the Global Workplace Solutions business from Johnson Controls, Inc. $1.475 billi
Slide 9: 2014 fee revenue mix with GWS acquisition
2014 fee revenue Mix with gws acquisition Total Fee Revenue: $3,742 Combined Total Fee Revenue: $8,4264 5.0x GWS acquisition solidifies a more stable, resilient long-term growth-oriented revenue and earnings profile See slide 27 for footnotes Contractual Sources 3 $798 (21%) Contractual Sources 3 $4
Slide 10: YTD Q3 2015 business line revenue
Revenue ($ in millions) Contractual Revenue Sources Leasing Capital Markets Other Occupier Outcourcing1 Asset Services1 Investment Management Valuation Leasing Sales Commercial Mortgage Services Development Services Other Total Gross Revenue YTD Q3 2015 $ 2,437 $ 761 $ 318 $ 360 $ 1,673 $ 1,171 $ 34
Slide 11: Key takeaways
CBRE leads an industry with strong underlying growth dynamics Positioned to continue our track record of long-term growth Our business model has evolved significantly. Including the GWS acquisition: CBRE’s contractual fee revenue increased 5.0x from 2006 to 2014 Contractual fee revenue and Leasing,
Slide 12: Key takeaways
KEY TAKEAWAYS = CBRE leads an industry with strong underlying growth dynamics = Positioned to continue our track record of long-term growth = Our business model has evolved significantly. Including the GWS acquisition: + CBRE'’s contractual fee revenue increased 5.0x from 2006 to 2014 * Contractual
Slide 13: Occupier Outsourcing
Historical revenue for Occupier Outsourcing line of business (formerly Global Corporate Services or GCS, now called Global Workplace Solutions) excludes associated sales and leasing revenue, most of which is contractual. As of September 1, 2015. YTD Q3 2015 revenue includes one month contribution fr
Slide 14: Asset Services
Historical revenue1 overview Key strategic accounts ($ in millions) Asset Services revenue excludes associated sales and leasing revenue, most of which is contractual. As of December 31, 2014; includes 8% of total from affiliates. Asset Services manages buildings for investors Highly synergistic wit
Slide 15: Investment Management
CAPITAL RAISED1 Performance-driven global real estate investment manager More than 500 institutional clients Equity to deploy: approx. $5,700 million1,2 Co-Investment: $138.9 million2 Assets under Management (AUM) overview ($ in billions) As of 9/30/2015 See slide 27 for footnotes ($ in billions) IN
Slide 16: Appraisal & Valuation
Premier clients ($ in millions) 134,500+ assignments in 2014 Euromoney Global Valuation Advisor of the Year for four consecutive years Clients include lenders, life insurance companies, special servicers and REITs overview Appraisal & Valuation Serving Clients Globally Historical revenue YTD Q3 $365
Slide 17: Leasing
overview Recent transactions LinkedIn Toronto-Dominion Bank KPMG New York, NY Toronto, Canada Madrid, Spain 125,000 SF 231,000 SF 212,000 SF Advise occupiers and investors in formulating and executing leasing strategies Tailored service delivery by property type and industry/market specialization St
Slide 18: Property Sales
United States Ireland Australia Cannon Commercial Starwood REIT DEXUS Property $310 Million $523 Million $488 Million Property Sale Portfolio Acquisition Property Acquisition Recent transactions Strategic advisor (sellers and buyers) in commercial real estate #1 global market share, based on Real Ca
Slide 19: Commercial Mortgage Services
EMEA United States United States ASR Dutch Prime Retail Fund Brookfield Asset Management GE Capital $267 Million $1.65 Billion $2.3 Billion Equity Capital Raise Acquisition Financing Loan Sale Activity includes loan originations and loan sales. As measured in dollar value loaned. Recent transactions
Slide 20: Development Services
500 W. 2nd Street/Northshore The Boardwalk McMillan The Brickyard Austin, TX Mixed-Use Newport Beach, CA Office Washington, DC Healthcare Los Angeles, CA Industrial 2 Projects in process/pipeline1 overview Recent projects Premier brand in U.S. development 65+ year record of excellence Partner with l
Slide 21: Non-GAAP financial measures
Non-Gaap financial measures The following measures are considered “non-GAAP financial measures” under SEC guidelines: (i) Fee revenue (ii) Net income attributable to CBRE Group, Inc., as adjusted (which we also refer to as “adjusted net income”) (iii) Diluted income per share attributable to CBRE Gr
Slide 22: Reconciliation of Normalized EBITDA to net income
Twelve Months Ended ($ in millions) September 30, 2015 December 31, 2003 Normalized EBITDA $ 1,307.5 $ 183.2 Adjustments: Integration and other costs related to acquisitions 24.9 13.6 Carried interest incentive compensation expense1 20.9 - Cost containment expenses - 36.8 EBITDA 1,261.7 132.8 Add: I
Slide 23: Reconciliation of net income to adjusted net income and EPS
Nine Months Ended September 30, ($ in millions, except per share amounts) 2015 2014 Net income attributable to CBRE Group, Inc. $ 367.1 $ 280.2 Amortization expense related to certain intangible assets attributable to acquisitions, net of tax 34.3 37.3 Integration and other costs related to acquisit
Slide 24: Reconciliation of gross revenue to fee revenue
Reconciliation of gross revenue to fee revenue Twelve Months Ended December 31, ($ in millions) 2014 Pro-forma 1,2 2006 Consolidated revenue $ 12,457 $ 4,032 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work performed for cli
Slide 25: Reconciliation of gross revenue to fee revenue
Nine Months Ended September 30, ($ in millions) 2015 2014 Occupier Outsourcing revenue 1 $ 2,436.8 $ 2,028.3 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work performed for clients 1,580.5 1,307.6 Occupier Outsourcing fee rev
Slide 26: Footnotes
Footnotes Slide 16 Excludes global securities business. As of September 30, 2015. Slide 21 As of December 31 for each year presented. In Process figures include Long-Term Operating Assets (LTOA) of $0.1 billion for Q3 2015, $0.3 billion for Q4 2014, $0.9 billion for Q4 2013, $1.2 billion for Q4 2012
Slide 27: Footnotes
FOOTNOTES NOTE: Local curency prcent changes versus prar yar isa non-GAAP ancial meature noted on sides 6 and Ti. These percent changes ae calcdted by comparing Gurent year results versus por yer results, in each case ot par yar exchange rates Slide 6 1. Nomalzed EBITDA excites cost containment expe