Cbre Group Inc · NYSE:CBRE
Cbre — Investor Presentation (February 2016)
27 slides from Cbre's investor presentation, Feb 19, 2016
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 statements regarding CBRE’s future growth momentum, operations, financial performance (including adjusted earnings per share expectations), market shar
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 December 31, 2015. As of December 31, 2015, includes affiliates. Property and Corporate Facilities under Management, as of Septemb
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
Revenue up 20% (26% Local Currency) Adjusted EPS2 up 22% (26% Local Currency)3 Track record of long-term growth 16% Revenue CAGR From 2003 to 2015: From 2014 to 2015: 19% Normalized EBITDA1 CAGR See slide 27 for footnotes
Slide 6: Positioned for long-term growth
Consolidation Core leasing and capital markets remain highly fragmented and continue to consolidate Outsourcing Still in early stage of penetration with occupiers Contributes to largely recurring leasing revenues Capability Acquired the leading global facility management business (Johnson Controls’
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 Capitalize on growth opportunities in Occupier Outsourcing business Enrich our operating platform (IT, Research
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: Pro-forma 2015 fee revenue mix (with GWS)
Pro-forma 2015 fee revenue Mix (with GWS) Total Fee Revenue4: $3,742 Pro-forma Fee Revenue4: $8,465 4.6x GWS acquisition solidifies a more stable, resilient long-term growth-oriented revenue and earnings profile Note – Pro-forma 2015 includes four months of actual fee revenue from the acquired GWS b
Slide 10: 2015 revenue (with four months of GWS)
2015 REVENUE (with four months of GWS) Contractual revenue & leasing, which is largely recurring1, is 70% of fee revenue Revenue ($ in millions) Contractual Revenue Sources Leasing Capital Markets Other Occupier Outsourcing2 Asset Services2 Investment Management Valuation Leasing Sales Commercial Mo
Slide 11: Key takeaways
CBRE: Leads an industry with strong underlying growth dynamics Is well positioned to continue its track record of long-term growth Has developed into a balanced business with a more stable growth profile Is an investment grade company with significant liquidity Is continuing to extend its competitiv
Slide 12: Key takeaways
KEY TAKEAWAYS CBRE: = Leads an industry with strong underlying growth dynamics = Is well positioned to continue its track record of long-term growth = Has developed into a balanced business with a more stable growth profile = Is an investment grade company with significant liquidity = Is continuing
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. 2015 revenue includes four months of contribution from
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; 8% of this square footage is from affiliates. Asset Services manages buildings for investors Highly synergi
Slide 15: Investment Management
CAPITAL RAISED1 Performance-driven global real estate investment manager More than 500 institutional clients Equity to deploy: approx. $4,800 million1,2 Co-Investment: $145.1 million2 Assets under Management (AUM) overview ($ in billions) As of 12/31/2015 See slide 27 for footnotes ($ in billions) I
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 $365 $385 $
Slide 17: Leasing
overview Recent transactions Morgan Stanley The Gap KPMG New York, NY San Francisco, CA Madrid, Spain 260,000 SF 243,000 SF 212,000 SF Advise occupiers and investors in formulating and executing leasing strategies Tailored service delivery by property type and industry/market specialization Strategi
Slide 18: Property Sales
United States Poland Australia Exeter Property Group Deutsche Asset & Wealth Management Brookfield $3.15 Billion $315 Million $474 Million Portfolio Sale Property Acquisition Property Sale Recent transactions Strategic advisor (sellers and buyers) in commercial real estate #1 global market share, ba
Slide 19: Commercial Mortgage Services
London United States United States Stanhope, Mitsui Fudosan and Alberta Investment Management Brookfield Asset Management GE Capital $530 Million $1.65 Billion $2.3 Billion Development Financing Acquisition Financing Loan Sale Activity includes loan originations and loan sales. As measured in dollar
Slide 20: Development Services
Park District The Boardwalk McMillan The Brickyard Dallas, TX Mixed-Use Newport Beach, CA Office Washington, DC Healthcare Los Angeles, CA Industrial 2 Projects in process/pipeline1 overview Recent projects Premier brand in U.S. development 65+ year record of excellence Partner with leading institut
Slide 21: Non-GAAP financial measures
Non-Gaap financial measures The following measures are considered “non-GAAP financial measures” under SEC guidelines: (i) Fee revenue (ii) Net income attributable to CBRE Group, Inc., as adjusted (which we also refer to as “adjusted net income”) (iii) Diluted income per share attributable to CBRE Gr
Slide 22: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Twelve Months Ended December 31, ($ in millions) 2015 2003 Normalized EBITDA $ 1,412.7 $ 183.2 Adjustments: Cost containment expenses 40.4 36.8 Carried interest incentive compensation expense1 26.1 - Integration and other costs related to acquisitions 48.9 13.6 EBITDA 1,297.3 132.8 Add: Interest inc
Slide 23: Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS
Twelve Months Ended December 31, ($ in millions, except per share amounts) 2015 2014 Net income attributable to CBRE Group, Inc. $ 547.1 $ 484.5 Cost containment expenses, net of tax 28.6 - Amortization expense related to certain intangible assets attributable to acquisitions, net of tax 61.5 48.3 I
Slide 24: Reconciliation of gross revenue to fee revenue
Reconciliation of gross revenue to fee revenue Pro-forma 2015 includes four months of actual fee revenue from the acquired GWS business while under our ownership, annualized ($1,103M) for illustrative purposes. Twelve Months Ended December 31, ($ in millions) 2015 Pro-forma1 2006 Consolidated revenu
Slide 25: Reconciliation of gross revenue to fee revenue
Reconciliation of gross revenue to fee revenue Occupier Outsourcing and Asset Services (AS) revenue excludes associated leasing and sales revenue, most of which is contractual. Twelve Months Ended December 31, ($ in millions) 2015 2014 Occupier Outsourcing revenue 1 $ 4,034.9 $ 2,794.4 Less: Client
Slide 26: Footnotes
Footnotes Slide 16 Excludes global securities business. As of December 31, 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 Q4 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 porcant changes versus per yar is @ non-GAAP francial measure noted on ses 6 and 17. These percent changes are calcated by comparing Gurent ‘yar rests vers por year results in each cae a prior yaar exchange aes ‘io 6 1. Normalized EBITDA excludes cot containment expense