Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Presentation (May 2008)
19 slides from Cbre's investor presentation, May 16, 2008
Slide 1: Corporate Overview
Exhibit 99.1 Corporate Overview Brett White Chief Executive Officer Ken Kay Senior Executive Vice President and Chief Financial Officer
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 growth momentum in 2008, future operations and future financial performance. These statements shoul
Slide 3: Global Leader in Commercial Real Estate Services
Global Leader in Commercial Real Estate Services 100+ years Leading Global Brand 55 countries #1 in key cities in America, Europe and Asia Pacific #1 commercial real estate brokerage #1 outsourcing Broad #1 appraisal and valuation Capabilities $42.2 billion in assets under management (1) #2 commerci
Slide 4: CBRE 2008 Milestones
CBRE 2008 Milestones First commercial real estate services company in the Fortune 500; Ranked #404 Ranked #11 among 50 “Best-in-Class” companies World’s Most Powerful Brokerage Firm World’s Top Brokerage and Property Management Firm #1 brand for seven consecutive years Property Advisor of the Year O
Slide 5: Environmental Stewardship
Environmental Stewardship Strategy • Global Taskforce formed • Policy – “We are committed to minimizing our environmental impact and to assisting our clients in doing the same at their properties” – Carbon neutral by 2010 – Best practices and bias towards green space (e.g. Washington DC office) – En
Slide 6: Diversity & Employee Relations
Diversity & Employee Relations Executive-level Diversity Board reporting to CEO Definition: “Diversity is all the unique characteristics that make up every one of us….” Affinity Groups: • Women’s Network (2000) • African-American Network Group (2004) • Hispanic Network (2007) Companies that Care Hon
Slide 7: #1 Position in a Fragmented Market
#1 Position in a Fragmented Market $27 Billion U.S. Commercial Real Estate Market (1) 12.7% CBRE 25.0% C&W 4.4% JLL 2.8% GBE 1.9% Other/Third Party Self Providers 53.2% Large and growing market—4.2% CAGR 1997-2007 Highly fragmented—top four firms have 21.8% market share Source: 2007 external public
Slide 8: In-Fill Acquisitions 2005 – Present
In-Fill Acquisitions 2005 – Present Immobiliere Developpement & Gestion Austin Adams Modus Dalgleish Sogesmaint Holley Blake Oxford Property Consultants DGI Davis George Rietmeijer CBRE Gunne Paul Gee and Co. Grenville Smith and Duncan Nanninga & Taconis Cederholm Rutter & Strutz Groupe Axival, Inc.
Slide 9: Diverse Client Base
Diverse Client Base 2007 Revenue by Client Type Government 1% Offshore Investors 1% Other 4% Insurance Opportunity Co's/Banks 19% Funds 6% Conduits/Wall Street Firms 4% REITs 6% Individuals/ Partnerships 11% Corporations Pension Funds/ 34% P F Advisors 14% CB Richard Ellis | Page 9
Slide 10: Global Reach
Global Reach Segment Contribution Q1 2008 TTM Q1 2008 TTM Normalized Revenue EBITDA(1) Global Global Development Development Investment Investment Services Services Management Management 2% 2% 8% 5% Asia Pacific Asia Pacific 10% 10% Americas EMEA 54% 22% Americas 61% EMEA 26% (1) Normalized EBITDA e
Slide 11: Q1 2008 Revenue Breakdown
Q1 2008 Revenue Breakdown 2% 3% 2% 2% 7% 33% 19% 32% Three months ended March 31, ($ in millions) 2008 2007 % Change Property & Facilities Management 413.2 307.8 34 Leasing 394.5 328.5 20 Sales 227.9 339.0 -33 Appraisal & Valuation 87.1 80.0 9 Investment Management 41.0 87.9 -53 Development Services
Slide 12: Consistent Long Term Growth
Consistent Long Term Growth (1) ($ in millions) Average Annual Organic Growth = 12% 16.2%16.1% 15.1% 14.4% 6,036 6,053 11.9% 11.3% 10.6% 10.7% 9.9% 10.1% 9.6% 8.9% 8.4% 4,032 8.4% 7.9% 6.6% 3,194 5.6% 2,647 1,810 1,403 1,518 1,362 1,362 1,187 583 759 360 392 429 469 2 3 1992 1993 1994 1995 1996 1997
Slide 13: Capitalization
Capitalization As of ($ in millions) 3/31/2008 12/31/2007 Variance Cash 313.2 342.9 (29.7) Revolving credit facility 311.2 227.1 84.1 Senior secured term loan A 827.0 827.0 - Senior secured term loan B 957.3 960.0 (2.7) Senior secured term loan A-1 300.0 - 300.0 Notes payable on real estate1 7.4 6.6
Slide 14: Debt Maturity
Debt Maturity As of December 31, Maturity Date 2008 2009 2010 2011 Revolving Credit Facility $32.7 - - - 6/24/2011 Senior Secured Term Loan A $827.0 $632.5 $340.6 - 12/20/2011 Senior Secured Term Loan B $949.0 $938.0 $927.0 $916.0 12/20/2013 Senior Secured Term Loan A-1 $297.8 $255.0 $195.0 $135.0 1
Slide 15: Q1 2008 TTM Normalized Internal Cash Flow
Q1 2008 TTM Normalized Internal Cash Flow Strong cash flow generator Low capital intensity 76 (79) 55 (38) 463 477 Utilization of internal cash flow •Co-investment activities •Development •In-fill acquisitions •Debt reduction 1 •Share repurchases (1) Represents capital expenditures, net of concessio
Slide 16: GAAP Reconciliation Tables
GAAP Reconciliation Tables CBRE CB RICHARD ELLIS
Slide 17: Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss)
Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) Year Ended December 31, ($ in millions) 2007 2006 2005 2004 2003 Normalized EBITDA $ 970.1 $ 652.5 $ 461.3 $ 300.3 $ 183.2 Less: Merger-related charges 56.9 - - 25.6 36.8 Integration costs related to acquisitions 45.2 7.6 7.1 14.4 13
Slide 18: Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss)
Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) TTM Q1 2008 Global Investment Development ($ in millions) Consolidated Americas EMEA Asia Pacific Management Services (1) Normalized EBITDA $ 912.8 $ 495.2 $ 239.2 $ 87.1 $ 72.8 $ 18.5 Less: Merger-related charges 25.1 23.8 1.2 - - 0
Slide 19: Reconciliation of Net Income to Net Income, As Adjusted
Reconciliation of Net Income to Net Income, As Adjusted TTM Q1 2008 Results Amortization expense related to net revenue backlog, incentive fees and customer 6 463 15 relationships acquired (1) 23 Integration costs related to acquisitions (1) 20 Merger-related charges (1) 399 Write-down of impaired i
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