Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Presentation (May 2009)
28 slides from Cbre's investor presentation, May 18, 2009
Slide 1: Investor Presentation May 2009
Investor Presentation May 2009 CB Richard Ellis Group, Inc.
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 2009, 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 57 countries #1 in key cities in America, Europe and Asia Pacific #1 commercial real estate brokerage #1 outsourcing #1 appraisal and valuation $36.0 billion in assets under management1 #2 commercial mortgage brokerage $6.9 billion of devel
Slide 4: Diverse Client Base
Diverse Client Base Diversified revenue spread across broad base of clients with no concentration. 2008 Revenue by Client Type Corporations, 39% Insurance Co’s/Banks, 23% Pensions Funds/P F Advisors, 11% Individuals/Partnerships, 9% REITs, 5% Opportunity Funds, 4% Government, 3% Conduits/Wall Street
Slide 5: Segment Contribution
Segment Contribution TTM Q1 2009 Revenue TTM Q1 2009 Normalized EBITDA1. Normalized EBITDA excludes integration costs related to acquisitions, cost containment expenses and the write-down of impaired assets. Americas 63% EMEA 19% Asia Pacific 8% Global Investment Management 6% Development Services 4
Slide 6: Revenue Breakdown 1st Quarter 2009
Revenue Breakdown 1st Quarter 2009 44% 30% 9% 7% 4% 2% 2% 2% Property & Facilities Management Leasing Sales Appraisal & Valuation Investment Management Development Services Commercial Mortgage Brokerage Other ($ in millions) 2009 2008 % Change 396.4 413.2 -4 267.1 394.5 -32 77.8 227.9 -66 62.4 87.1
Slide 7: Outsourcing Services
Outsourcing Services Global property and facilities management Global project management Global corporate services 1 88 of the Fortune 100 Represents combined data for CBRE and TCC; does not include joint ventures and affiliates. Management fees include property management, facilities management and
Slide 8: #1 Provider of Every Outsourced Real Estate Service
#1 Provider of Every Outsourced Real Estate Service * Excluding affiliates; statistics are as of 12/31/08. Global execution of transactions with a portfolio-wide focus Optimize portfolio Lease administration services Multiple-transaction focus Full service outsourcing Program management One-off inte
Slide 9: US Market Statistics
US Market Statistics US Absorption Trends US Vacancy (in millions of square feet) 4Q07 4Q08 1Q09 4Q09 F 2007 2008 1Q09 2009 F Office 12.6% 13.9% 14.7% 17.4% 57.7 18.4 -16.3 -70.3 Industrial 9.5% 11.4% 12.2% 14.3% 167.4 -86.8 -92.7 -315.5 Retail 8.7% 10.4% 11.2% 12.4% 13.7 -0.7 -11.3 -22.3 Source: CB
Slide 10: Leasing Q1 2009 Business Update
Leasing Q1 2009 Business Update Vacancy rates continue to increase. Negative absorption rates. Leasing business will track worldwide economic performance. 1 Includes Trammell Crow Company’s revenue for the period from the 12/20/2006 acquisition date through 12/31/2006. CAGR 17% forecast -15 -10 -5 0
Slide 11: Sales Q1 2009 Business Update
Sales Q1 2009 Business Update Credit markets remain challenging. Declining property market fundamentals due to weak leasing environment. Asset values continue to decline. Wide bid ask spread continues to exist. CAGR 7% 1. Includes Trammell Crow Company’s revenue for the period from the 12/20/2006 ac
Slide 12: Global Investment Management
Global Investment Management ($ in billions) ($ in millions) Combination with CBRE platform creates competitive advantage. CAGR 19% CAGR 20.2% ($ in millions) Co-investments totaled $67 million at March 31, 2009 Annual Revenue 57.1 68.4 94.0 99.3 126.3 259.2 160.8 28.0 101.7 88.7 0.4 57.1 68.4 94.0
Slide 13: Global Investment Programs
Global Investment Programs Description Q1 2009 Statistics Typical Fee Structure Separate Accounts $16.0 billion of assets under management Management fees Transaction fees Incentive fees Sponsored Funds $16.0 billion of assets under management Management fees Transaction fees LP profits Carried Inte
Slide 14: Development Services
Development Services Develops properties for user / investor clients on a fee and / or co-investment basis $96 million co-invested at March 31, 2009 $4.6 million in recourse debt to CBRE at March 31, 2009 Includes Trammell Crow Company’s operations prior to the acquisition on 12/20/06. Reflects full
Slide 15: Financial Overview
Financial Overview CBRE CB RICHARD ELLIS
Slide 16: Consistent Long Term Growth
Consistent Long Term Growth1 Average Annual Organic Growth = 10% ($ in millions) No reimbursements are included for the period 1992 through 1996, as amounts were immaterial. Reimbursements for 1997 through 2001 have been estimated. For 2002 and forward, reimbursements are included. Includes TCC acti
Slide 17: Q1 2009 Business Overview
Q1 2009 Business Overview Worldwide economic conditions remain weak, impacting absorption and vacancy rates – causing leasing results to suffer Challenging credit markets and declining property market fundamentals continue to pressure investment sales Outsourcing portfolio and number of clients grow
Slide 18: Q1 2009 Performance Overview
Q1 2009 Performance Overview Q1 2008 Q1 2009 $104.6 million $54.1 million Normalized EBITDA3 8.5% 6.1% Normalized EBITDA Margin3 $88.5 million $38.4 million EBITDA GAAP $0.10 Adjusted $0.15 GAAP ($0.14) Adjusted ($0.03) EPS1,2 GAAP $20.5 million Adjusted $31.7 million GAAP ($36.7) million Adjusted (
Slide 19: Cost Cutting Initiatives
Cost Cutting Initiatives Previously announced $385 million cost savings plans implemented Raising structural operating expense savings target by another approximate $100 million to a total of $475 - $500 million annually versus full year 2007 Expect to realize approximately $435 million of these sav
Slide 20: Credit Agreement Amendment
Credit Agreement Amendment Amended agreement completed March 24, 2009 Leverage ratio increased to 4.25x from 3.75x for eight quarters Interest coverage ratio decreased to 2.00x from 2.25x for eight quarters Up to $225 million in covenant EBITDA add backs: Up to $75 million related to one-time cost c
Slide 21: CBRE Debt Covenants & Maturity Schedule
CBRE Debt Covenants & Maturity Schedule Covenant Hurdle 9/30/08 12/31/08 3/31/09 Leverage Ratio <4.25x1 3.16 3.28 2.782 Interest Coverage Ratio >2.00x1 5.63 4.72 5.89 Year Amount Due 2009 $111 million remaining 2010 ~ $75 million per quarter Debt Covenants Debt Maturity Schedule Effective March 24,
Slide 22: Debt Highlights
Debt Highlights Normalized EBITDA excludes merger-related and other non-recurring costs, integration costs related to acquisitions, cost containment expenses, one-time IPO related compensation expense, gains/losses on trading securities acquired in the TCC acquisition and the write-down of impaired
Slide 23: Capitalization
Capitalization 1. Represents notes payable on real estate in Development Services that are recourse to the company. 2. Excludes non-recourse notes payable on real estate of $618.0 million and $613.6 million at March 31, 2009 and December 31, 2008, respectively. Excludes $276.3 million and $210.5 mil
Slide 24: Business Outlook
Business Outlook Market conditions continue to make providing guidance unrealistic Investment sales remain weak; distressed sales may pick up in 2009 Leasing expected to remain weak until economies begin to improve Outsourcing results will be mixed as new client growth is offset by spending restrain
Slide 25: Appendix
Appendix CB RICHARD ELLIS
Slide 26: Reconciliation of Normalized EBITDA to EBITDA to Net (Loss) Income
Reconciliation of Normalized EBITDA to EBITDA to Net (Loss) Income Notes: Includes EBITDA related to discontinued operations of $1.2 million in our Development Services segment. Includes interest income related to discontinued operations of $0.1 million in our Development Services segment. Includes
Slide 27: Reconciliation of Net (Loss) Income to Net (Loss) Income, As Adjusted
Reconciliation of Net (Loss) Income to Net (Loss) Income, As Adjusted Three Months Ended March 31, ($ in millions, except for share data) 2009 2008 Net (loss) income attributable to CB Richard Ellis Group, Inc. $ (36.7) $ 20.5 Cost containment expenses, net of tax 4.8 - Write-down of impaired assets
Slide 28: Reconciliation of Normalized EBITDA to EBITDA to Net (Loss) Income
Reconciliation of Normalized EBITDA to EBITDA to Net (Loss) Income Three Months Ended March 31, ($ in millions) 2009 2008 Normalized EBITDA $ 54.1 $ 104.6 Adjustments: Integration costs related to acquisitions 1.7 5.5 Cost containment expenses 7.9 - Write-down of impaired assets 6.1 10.6 EBITDA 38.4
CB Richard Ellis Group — Investor Presentation (May 2009) on 6ix