Slide 1: CBRE Group, Inc. Fourth Quarter 2011 Earnings Conference Call
CBRE Group, Inc. Fourth Quarter 2011 Earnings Conference Call February 7, 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 ability to successf
Slide 3: Conference Call Participants
Conference Call Participants Brett White Chief Executive Officer Gil Borok Chief Financial Officer Nick Kormeluk Investor Relations
Slide 4: Business Overview
Business Overview 2011 Full Year Highlights: Full year 2011 revenue rose 15% to $5.9 billion 2011 normalized EBITDA grew 18% to $802.6 million 2011 normalized EBITDA margin increased to 13.6% 2011 normalized diluted earnings per share was $1.03, which was almost 40% above full year 2010, and near th
Slide 5: Q4 CBRE Wins
Q4 CBRE Wins WASHINGTON, D.C. U.S. General Services Administration CBRE represented the U.S. General Services Administration on behalf of the National Oceanic and Atmospheric Administration (NOAA) in a 1.0M SF headquarters lease. This was the largest lease completed in the Washington D.C. region in
Slide 6: Q4 2011 Performance Overview
Q4 2011 Performance Overview Q4 2011 Q4 2010 Revenue1 $1,767.9 million $1,653.5 million Net Income2 GAAP $79.8 million Adjusted $149.3 million GAAP $95.1 million Adjusted $115.4 million EPS2,3 GAAP $0.25 Adjusted $0.46 GAAP $0.30 Adjusted $0.36 EBITDA4 $235.1 million $241.0 million Normalized EBITDA
Slide 7: Revenue Breakdown 4th Quarter 2011
Revenue Breakdown 4th Quarter 2011 Includes revenue from discontinued operations of $4.4 million and $2.2 million for the three months ended December 31, 2011 and 2010, respectively. Includes revenue from discontinued operations of $6.7 million and $3.9 million for the twelve months ended December 3
Slide 8: Outsourcing
Outsourcing CAGR 13% 1. Represents combined data for CBRE and TCC; does not include joint ventures and affiliates 1 Q4 2011 Wins 13 new 10 renewals 10 expansions Highlights: 33 contracts signed in Q4 2011 173 total contracts signed in 2011 - a new single-year company record Total 2011 revenue crosse
Slide 9: US Market Statistics
US Market Statistics Source: CBRE Econometric Advisors (EA) Outlooks 4Q 2011 Starting in Q2 2011 retail has been expanded to include strip centers, neighborhood centers and community centers US Vacancy US Absorption Trends (in millions of square feet) 4Q10 3Q11 4Q11 4Q12 F 4Q13F 2010 2011 2012F 2013
Slide 10: Sales, Leasing and Outsourcing Revenue - Americas
Sales, Leasing and Outsourcing Revenue - Americas ($ in millions) Sales Leasing 36% 6% 15% (9%) Outsourcing 12% 10% $1,441.6 $1,288.6 $1,243.4 $1,174.6 $419.0 $379.7 $435.4 $592.3 Full Year 2010 2011 $349.6 $385.0 $165.9 $190.8 Fourth Quarter
Slide 11: Sales, Leasing and Outsourcing Revenue – EMEA
Sales, Leasing and Outsourcing Revenue – EMEA ($ in millions) Sales Leasing 3% (1%) 17% 11% Outsourcing 23% 17% $268.9 $332.0 $111.2 $123.6 $332.6 $388.0 $197.3 $202.4 Full Year 2010 2011 $73.5 $86.3
Slide 12: Sales, Leasing and Outsourcing Revenue – Asia Pacific
Sales, Leasing and Outsourcing Revenue – Asia Pacific ($ in millions) 18% 11% 17% 3% Sales Leasing Outsourcing 22% 36% $82.5 $85.0 $134.6 $158.7 Full Year 2010 2011 $48.8 $66.4 $45.2 $50.1 Fourth Quarter $233.5 $273.5 $211.7 $257.8
Slide 13: Development Services
Development Services Highlights: Q4 2011 net gains of approximately $33 million from two asset sales $79.2 million of co-investments at the end of 2011 $15.0 million in recourse debt to CBRE and repayment guarantees at the end of 2011 In Process figures include Long-Term Operating Assets (LTOA) of $
Slide 14: Global Investment Management
Global Investment Management ($ in billions) ($ in millions) CAGR 20% CAGR 26% Includes revenue from discontinued operations of $5.5 million for the twelve months ended December 31, 2011. Includes revenue from discontinued operations of $3.1 million for the three months ended December 31, 2011. ING
Slide 15: Global Investment Management Pro-forma Normalized EBITDA
Global Investment Management Pro-forma Normalized EBITDA For the three months ended December 31, 2011, the Company recorded net carried interest incentive compensation expense of $10.5 million pertaining to future periods, compared to $13.8 million in the 2010 period. For the twelve months ended Dec
Slide 16: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule $ millions $700.0 million revolver facility matures in May 2015. As of December 31, 2011, the outstanding revolver balance was $44.8 million. As of December 31, 2011 1 0.0 250.0 500.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Term Loan A Term Loan A1 T
Slide 17: Capitalization
Capitalization Excludes $208.1 million and $26.1 million of cash in consolidated funds and other entities not available for company use at December 31, 2011 and December 31, 2010, respectively. Net of original issue discount of $11.0 million and $12.3 million at December 31, 2011 and 2010, respectiv
Slide 18: Business Outlook
Business Outlook We believe that we are in a cyclical recovery in commercial real estate with annual growth expected to be similar to our long-term business model This model (on a normalized basis) is: Revenue growth of 7-9% EBITDA growth of 12-14% EPS growth of high-teens to 20% Outsourcing is like
Slide 19: GAAP Reconciliation Tables
GAAP Reconciliation Tables CBRE
Slide 20: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Reconciliation of Normalized EBITDA to EBITDA to Net Income Includes EBITDA related to discontinued operations of $12.2 million and $14.1 million for the three and twelve months ended December 31, 2011, respectively, and $1.1 million and $16.4 million for the three and twelve months ended December 3
Slide 21: Reconciliation of Net Income to Net Income, As Adjusted
Reconciliation of Net Income to Net Income, As Adjusted ($ in millions, except for per share data) 2011 2010 2011 2010 Net income attributable to CBRE Group, Inc. 79.8 $ 95.1 $ 239.2 $ 200.3 $ Integration and other costs related to 42.8 2.7 59.6 4.5 acquisitions, net of tax Cost containment expenses