Cbre Group Inc · NYSE:CBRE
Cbre — Investor Presentation (September 2015)
27 slides from Cbre's investor presentation, Sep 15, 2015
Slide 1: CBRE Group, Inc. Global Market Leader in Integrated Commercial Real Estate Services
September 2015 CBRE Group, Inc. Global Market Leader in Integrated Commercial Real Estate Services
Slide 2: Forward-Looking Statements
This presentation contains statements that are forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including qualitative and quantitative statements regarding our future growth momentum, operations, financial performance, business outlook and our ability to in
Slide 3: 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 June 30, 2015 As of December 31, 2014, includes affiliates Property and Corporate Facilities under Management. As of September 1,
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
Track record of long-term growth See slide 28 for footnotes Revenue 16% CAGR Normalized EBITDA1 18% CAGR From 2003 to TTM Q2 2015: YTD Q2 2015 vs YTD Q2 2014 performance: Adjusted EPS2 22% USD 27% Local Currency Revenue 11% USD 17% Local Currency
Slide 6: Positioned for long-term growth
Consolidation Core leasing and capital markets remain highly fragmented Outsourcing Still in early stage of penetration with occupiers Drives largely recurring leasing revenues Capability With scale and focus, we continue to extend our globally integrated offering Positioned for long-term growth CBR
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 Enhance depth and breadth of our Occupier Outsourcing business Enrich our operating platform (IT, Research, Mar
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 (GWS) business from Johnson Controls, Inc. $1.475
Slide 9: 2014 fee revenue mix with GWS acquisition
2014 fee revenue Mix with gws acquisition Total Fee Revenue: $3,742 Combined Total Fee Revenue: $8,7434 5.4x GWS acquisition solidifies a more stable, resilient long-term growth-oriented revenue and earnings profile See slide 28 for footnotes Contractual Sources 3 $798 (21%) Contractual Sources 3 $4
Slide 10: 2014 business line revenue with GWS acquisition
2014 business line revenue with gws acquisition 2014 Pro-Forma Revenue ($ in millions) Contractual Revenue Sources Leasing Capital Markets Other Global Workplace Solutions 1 Asset Services 1 Investment Management Appraisal & Valuation Leasing Sales Comm. Mortgage Services Dev. Services Other Total C
Slide 11: YTD Q2 2015 business line revenue without GWS acquisition
Revenue ($ in millions) Contractual Revenue Sources Leasing Capital Markets Other Global Workplace Solutions1 Asset Services1 Investment Management Valuation Leasing Sales Commercial Mortgage Services Development Services Other Total Gross Revenue YTD Q2 2015 $ 1,441 $ 507 $ 204 $ 236 $ 1,057 $ 722
Slide 12: Key takeaways
CBRE leads an industry with strong underlying growth dynamics Positioned to continue our track record of long-term growth Our business model has evolved significantly. Including the GWS acquisition: CBRE’s contractual fee revenue increased 5.4x from 2006 to 2014 Contractual fee revenue and Leasing,
Slide 13: Appendix
APPENDIX CBRE
Slide 14: Global Workplace Solutions
Historical revenue for Global Workplace Solutions line of business (formerly Global Corporate Services or GCS) excludes associated sales and leasing revenue, most of which is contractual. As of September 1, 2015; includes affiliates. Per International Association of Outsourcing Professionals (IAOP).
Slide 15: 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; includes affiliates. Asset Services manages buildings for investors Highly synergistic with property leasin
Slide 16: Investment Management
CAPITAL RAISED1 Performance-driven global real estate investment manager More than 500 institutional clients Equity to deploy: approx. $6,300 million1,2 Co-Investment: $142.1 million2 Assets under Management (AUM) overview ($ in billions) As of 6/30/2015 See slide 28 for footnotes ($ in billions) IN
Slide 17: 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 YTD Q2 $365
Slide 18: Leasing
overview Recent transactions Subaru Toronto-Dominion Bank Intel Lebanon, IN Toronto, Canada Beijing, China 715,000 SF 231,000 SF 96,000 SF Advise occupiers and investors in formulating and executing leasing strategies Tailored service delivery by property type and industry/market specialization Stra
Slide 19: Property Sales
Canada Spain Australia Fortis Properties Merlin Properties DEXUS Property $430 Million $1.98 Billion $488 Million Property Sale Property Acquisition Property Acquisition Recent transactions Strategic advisor (sellers and buyers) in commercial real estate #1 global market share, based on Real Capital
Slide 20: Commercial Mortgage Services
EMEA Colorado United States ASR Dutch Prime Retail Fund Bell Partners NorthStar HealthCare Income $267 Million $190.5 Million $410 Million Acquisition Financing Equity Capital Raise Acquisition Financing $640 Million Portfolio Sale Activity includes loan originations, loan sales and affiliates. As m
Slide 21: Development Services
500 W. 2nd Street/Northshore The Boardwalk McMillan The Brickyard Austin, TX Mixed-Use Newport Beach, CA Office Washington, DC Healthcare Los Angeles, CA Industrial 2 Projects in process/pipeline1 overview Recent projects Premier brand in U.S. development 65+ year record of excellence Partner with l
Slide 22: Non-GAAP financial measures
Non-Gaap financial measures The following measures are considered “non-GAAP financial measures” under SEC guidelines: (i) Fee revenue (ii) Net income attributable to CBRE Group, Inc., as adjusted (which we also refer to as “adjusted net income”) (iii) Diluted income per share attributable to CBRE Gr
Slide 23: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Twelve Months Ended ($ in millions) June 30, 2015 December 31, 2003 Normalized EBITDA $ 1,255.1 $ 183.2 Adjustments: Carried interest incentive compensation expense 1 19.1 - Integration and other costs related to acquisitions 8.0 13.6 Cost containment expenses - 36.8 EBITDA 1,228.0 132.8 Add: Intere
Slide 24: Reconciliation of Net Income to adjusted Net Income and adjusted EPS
Six Months Ended June 30, ($ in millions, except per share amounts) 2015 2014 Net income attributable to CBRE Group, Inc. $ 218.0 $ 173.1 Amortization expense related to certain intangible assets attributable to acquisitions, net of tax 21.9 25.5 Integration and other costs related to acquisitions,
Slide 25: Reconciliation of gross revenue to fee revenue
Reconciliation of gross revenue to fee revenue Twelve Months Ended December 31, ($ in millions) 2014 Pro-forma1,2 2006 Consolidated revenue $ 12,457 $ 4,032 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work performed for clie
Slide 26: Reconciliation of gross revenue to fee revenue, six months
Six Months Ended June 30, ($ in millions) 2015 2014 Global Workplace Solutions (formerly GCS) revenue 1 $ 1,440.6 $ 1,327.4 Less: Client reimbursed costs largely associated with employees dedicated to client facilities and subcontracted vendor work performed for clients 938.5 851.4 Global Workplace
Slide 27: Footnotes
footnotes Slide 17 Excludes global securities business. As of June 30, 2015. Slide 22 As of December 31 for each year presented. In Process figures include Long-Term Operating Assets (LTOA) of $0.2 billion for Q2 2015, $0.3 billion for Q4 2014, $0.9 billion for Q4 2013, $1.2 billion for Q4 2012 and