Slide 1: CBRE Group, Inc. Investor Presentation
CBRE Group, Inc. Investor Presentation November 2011
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, and business outlook. These statements s
Slide 3: Global Market Leader
Global Market Leader 100+ years Leading Global 400+ offices in over 60 countries1 Brand #1 in virtually every major global business center #1 leasing #1 investment sales #1 outsourcing Broad #1 appraisal and valuation Capabilities #1 commercial mortgage brokerage #1 commercial real
Slide 4: Our Vision
Our Vision Be the preeminent, vertically integrated, globally capable commercial real estate services firm Our Strategy Provide a complete suite of market leading services to property owners and occupiers through a fully integrated global business platform and a managed account strategy Our Objectiv
Slide 5: Diverse Client Base
Diverse Client Base Diversified revenue spread across broad base of clients 2010 Revenue by Client Type Offshore Investors, 1% Conduits/Wall Street Other, 5% Firms, 1% Opportunity Funds, 4% REITs, 4% Government, 5% Corporations, 44% Individuals/Partnerships, 7% Pensions Funds/P F Advisors, 10% Insur
Slide 6: Geographic Diversification
Geographic Diversification #1 commercial real estate services firm in each of the major regions of the world LTM 9/30/11 Revenue1 Development Services 1% Global Investment Management 5% Asia Pacific 13% EMEA 18% Americas 63% 1. LTM 9/30/11 revenue of $5.8 billion includes $4.6 million of revenue rel
Slide 7: Revenue Diversification
Revenue Diversification Contractual revenues1 represented 47% of LTM 9/30/11 revenue, up from 29% in 2006 2006 Revenue2 LTM 9/30/11 Revenue3 Contractual 29% Contractual Non- 47% Contractual 53% Non- Contractual 71% 1. Contractual revenue includes: Property & Facilities Management (14% in 2006 and 34
Slide 8: Revenue Breakdown
Revenue Breakdown YTD 3rd Quarter 2011 4% 4% 1% 2% 6% 36% 15% 32% Three months ended September 30, Nine months ended September 30, ($ in millions) 2011 2010 1 % Change 20111 2010 1 % Change Property & Facilities Management 521.8 437.1 19 1,498.7 1,298.8 15 Leasing 493.3 414.8 19 1,318.1 1,129.5 17 S
Slide 9: Outsourcing Services
Outsourcing Services Property and Facilities Management Revenue1 Percent of YTD Q3 2011 Total Revenue1 ($ in Millions) $1,720 $1,772 $1,633 $1,396 36% $568 $467 $492 $323 2003 2004 2005 20062 2007 2008 2009 2010 Global Square Footage Managed 3 (SF in Billions) 2.9 2.6 2.2 1.9 1.6 1.3 1.4 1.2 2004 20
Slide 10: #1 Provider of Every Outsourced Real Estate Service
#1 Provider of Every Outsourced Real Estate Service Transaction Project Property/Facilities Consulting Management Management Management • Global execution • Full service • Sourcing and • Organizational of transactions outsourcing procurement design with a portfolio- • Program • Operations and • Port
Slide 11: Leasing
Leasing Global Leasing Revenue Percent of YTD Q3 2011 Total Revenue ($ in Millions) $1,870 $1,711 $1,744 $1,479 $1,348 $1,106 $986 $692 32% 1 2003 2004 2005 2006 2007 2008 2009 2010 Key Facts Approximately 4,2002 leasing professionals worldwide Tailored service delivery by property type and indu
Slide 12: Office Leasing Market Outlook
Office TW Rent Index; % change versus a year ago 0 5 10 15 (5) (15) (10) CBRE | Page 12 2000Q1 2000Q4 2001Q3 2002Q2 2003Q1 2003Q4 TW Rent Index 2004Q3 2005Q2 2006Q1 Vacancy 2006Q4 2007Q3 2008Q2 2009Q1 2009Q4 2010Q3 U.S. Office Rent Forecast and Vacancy 2011Q2 2012Q1 2012Q4 forecast 2013Q3 2014Q2 8.0
Slide 13: Sales
Sales Global Sales Revenue Percent of YTD Q3 2011 Total ($ in Millions) Revenue $1,660 $1,246 $1,078 $807 $870 $769 15% $513 $507 2003 2004 2005 2006 1 2007 2008 2009 2010 Key Facts Approximately 1,5002 investment sales specialists worldwide Specialization across all major property types $65.3
Slide 14: Global Transaction Volume
Global Transaction Volume Source: CBRE Research, RCA; Data excludes Development sites. Updated for Q3 2011. CBRE | Page 14
Slide 15: Global Investment Management: CBRE Investors
Global Investment Management: CBRE Investors GIM Revenue Percent of YTD Q3 2011 Total Revenue ($ in Millions) Carried Interest $348 Acquisition, Disposition & Incentive 4% 89 Investment Management $228 $216 20 102 143 $161 27 $141 $127 20 $94 14 28 $68 58 39 169 53 141 127 15 116 53 55 68 46 2003 20
Slide 16: Global Investment Programs
Global Investment Programs Assets Under Management1 Description ($ in billions) Typical Fee Structure Management fees Separate Accounts $23.8 Transaction fees Incentive fees Management fees Transaction fees Sponsored Funds $40.2 LP profits Carried interest Management fees Unlisted Se
Slide 17: ING REIM Impact on CBRE Financial Results
ING REIM Impact on CBRE Financial Results $ in Billions 2010 Results - Stand Alone & Combined $0.3 $5.1 $5.1 $0.1 $0.7 $0.7 Revenue Normalized EBITDA Revenue Normalized EBITDA Combined 1 CBRE ING REIM 1. Based on 2010 results as calculated by ING REIM management. CBRE | Page 17
Slide 18: Why ING REIM Is The Perfect Fit
Why ING REIM Is The Perfect Fit Assets Under Management 1 ($ Billions) Continental Global Products UK Asia Americas Europe Funds of Funds Separate 3.4 9.8 5.0 2.9 0.9 Accounts 7.3 6.8 Global Securities 2.0 0.7 Core/Core 0.2 Plus Funds 1.2 3.0 16.5 1.6 20.0 Value-Add/ 0.2 0.4 7.3 Opportunistic N/A 0.
Slide 19: Development Services: Trammell Crow Company
Development Services: Trammell Crow Company Revenue1 Percent of YTD Q3 2011 Total Revenue ($ in Millions) 1% $134 $120 $105 $83 $88 $79 $80 $62 2003 2004 2005 2006 2007 2008 2009 2010 Projects In Process/Pipeline Key Facts3 ($ in Billions) $6.6 billion in process/pipeline In Process 2 Pipeline $2.
Slide 20: Historical Performance
Historical Performance Revenue 1 ($ in Millions) 6,036 5,798 5,130 5,119 4,032 4,166 3,194 2,647 1,810 1,403 1,518 1,362 1,362 1,187 583 759 360 392 429 469 2 3 3 3 1. No reimbursements are included for the period 1992 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2
Slide 21: Mandatory Amortization and Maturity Schedule
Mandatory Amortization and Maturity Schedule Pro forma as of September 30, 2011 $ millions 500.0 458 422 378 370 340 350 250.0 68 70 76 17 0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Term Loan A Term Loan A-1 1 Term Loan B Term Loan C Term Loan D Sr. Subordinated Notes Sr. Unsecured Notes
Slide 22: Capitalization
Capitalization As of Proforma ($ in millions) 9/30/2011 9/30/2011 12/31/2010 1 Cash 576.1 451.9 480.5 Cash in Escrow - 335.0 - Total cash 576.1 786.9 480.5 Revolving credit facility 81.3 41.3 17.5 Senior secured term loan A 315.0 315.0 341.3 2 Senior secured term loan A-1 299.2 - - Senior secured te
Slide 23: Business Outlook
Business Outlook Early-stage cyclical recovery in commercial real estate continues despite sovereign debt challenges in Europe and economic uncertainty in the U.S. Outsourcing fundamentals remain very strong and we continue to expect solid double digit growth Investment sales are expected to c
Slide 24: Appendix
Appendix CBRE | Page 24
Slide 25: 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) LTM Q3 2011 2010 2009 2008 2007 2006 1 Normalized EBITDA $ 740.9 $ 681.3 $ 453.9 $ 601.2 $ 970.1 $ 652.5 Less: Integration and other costs related to acquisitions 28.0 7.2 5.7 16.4 45.2 7.6 Wri