Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Presentation (March 2007)
26 slides from Cbre's investor presentation, Mar 13, 2007
Slide 1: Investor Presentation March 2007
Investor Presentation March 2007
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 2007, future operations, future financial performance, and the impact of our acq
Slide 3: Industry/Company Trends
Industry/Company Trends
Slide 4: The World's Premier Commercial Real Estate Services Firm
2.5x nearest competitor Thousands of clients, 85% of Fortune 100 2006 combined CBRE & TCC Revenue of approximately $5 billion 2006 combined CBRE & TCC EBITDA of $759 million(2) Strong organic revenue and earnings growth #1 commercial real estate brokerage #1 appraisal and valuation #1 property and f
Slide 5: $26 Billion US Commercial Real Estate Services Industry
$26 Billion US Commercial Real Estate Services Industry (1) U.S. Market Share Top 4 = 20.7% Share Further Strengthens Our #1 Position in a Fragmented Market Source: Full year 2006 external public filings and management estimates. (1) Excludes investment management and includes reimbursable expenses.
Slide 6: Outsourcing Services
Outsourcing Services 85 of the Fortune 100 Sq. ft. Millions CAGR: 10% Global Property and Facilities Management1 Global Project Management Corporate Services Outsourcing Services is approximately 23% of total combined revenues (1) Represents combined data for CBRE and TCC. Does not include joint ven
Slide 7: Leasing market fundamentals
Global economic expansion fuels improved leasing market fundamentals In U.S., strong net absorption coupled with low construction deliveries results in significant rent increases Expanding European leasing market recovery produces double-digit rent gains in London, Paris, Madrid and other major citi
Slide 8: Investment Sales
Investment Sales Strong capital flows and improved leasing fundamentals continue to underpin investment sales market Institutional investors continue to increase allocations to real estate 16.5% yoy growth to $605.7 billion in U.S. (2006 vs. 2005) Europe experiencing increased capital movement acros
Slide 9: Investment Management
Investment Management Americas EMEA Asia Pacific Investment Management growing faster than the 11% growth in institutional ownership of real estate1 CBRE’s Assets Under Management ($ in Billions) Revenue ($ in Millions) (1) Source: IREI and ULI CAGR: 41% 127.3 228.0 CAGR: 26% Carried Interest Invest
Slide 10: Investment Management Global Strategy / Fund Matrix
Investment Management Global Strategy / Fund Matrix 100% 62% 15% Compounded Annual Growth Rate for Assets Under Management(1) No Yes No Coinvestment Asset Management Fees Incentive Fees Acquisition Fees Asset Management Fees LP Profits Carried Interest Acquisition Fees Asset Management Fees Incentiv
Slide 11: 2005 – 2007 YTD In-Fill Acquisitions
2005 – 2007 YTD In-Fill Acquisitions Easyburo SAS CPMS Artequation DTZ Queensland McCann Property and Planning Rafter and O’Hagan DTZ Australia Advocate Consulting Group, Inc. CB Richard Ellis Charlotte, LLC Columbus Commercial Realty Project Advantage, Inc. The Polacheck Company CB Richard Ellis Ha
Slide 12: Trammell Crow Company Acquisition
Trammell Crow Company Acquisition Business is comprised of: Global Corporate Services (GCS) and Development Services GCS consists of the following businesses: Property & Facilities Management Project Management Corporate Advisory Transaction Management Statistics # of Employees – 7,600 # of Project
Slide 13: Development Services Overview
Development Services Overview Development Services is a merchant development business Co-invests alongside equity of institutional partners Develops properties for user/investor clients on a fee basis without co-investing in the projects Does not seek to own development projects long term Revenue an
Slide 14: Financial Overview
CBRE CB RICHARD ELLIS Financial Overview 13
Slide 15: 2006 Record Business Performance Highlights
2006 Record Business Performance Highlights1 2005 2006 26% (In millions, except EPS) 41% Revenue Normalized EBITDA2 51% 48% Net income, as adjusted2 EPS, as adjusted2,3 1. Performance is based on 2006 CBRE standalone plus Trammell Crow Company from December 20, 2006 to December 31, 2006. 2. Normaliz
Slide 16: Consistent Long Term Growth
Consistent Long Term Growth CBRE has consistently outpaced industry growth. (1) Normalized EBITDA excludes merger-related and other non-recurring costs, integration costs related to acquisitions, one-time IPO-related compensation expense and income related to investment in Savills. (2) Reimbursable
Slide 17: 2006 Revenue Breakdown
2006 Revenue Breakdown 2006 CBRE Standalone1 2006 Combined (1) CBRE standalone includes Trammell Crow Company revenue for the period December 20, 2006 through December 31, 2006. 34% 27% 23% 6% 3% 5% 1% 2% 37% 31% 14% 7% 4% 6% 1% 1% ($ in millions) 2006 Combined 2006 2005 % Change Leasing 1,709.0 1,4
Slide 18: Normalized EBITDA Margins
Normalized EBITDA Margins1 CBRE has consistently improved its EBITDA margin. 1. Normalized EBITDA margins exclude merger-related and other non-recurring costs, integration costs related to acquisitions, one-time IPO-related compensation expense and income related to investment in Savills. 9.6% 10.1%
Slide 19: Debt Highlights
($ in millions) Debt Highlights Notes: - Normalized EBITDA excludes merger-related and other non-recurring costs, integration costs related to acquisitions, one-time IPO-related compensation expense, and income related to investment in Savills. 2006 combined normalized EBITDA includes $107.1 million
Slide 20: Capitalization
Capitalization Represents notes payable on real estate in Development Services that are recourse to the Company. Excludes non-recourse notes payable on real estate of $329.7 million. Excludes $104.0 million and $256.0 million of warehouse facility at December 31, 2006 and 2005, respectively. ($ in m
Slide 21: Strong cash flow generator
Strong cash flow generator Low capital intensity Utilization of internal cash flow Debt reduction Co-investment activities Development In-fill acquisitions Includes $55 million of Trammell Crow net income, as adjusted for the period January 1, 2006 through December 20, 2006. Represents capital expen
Slide 22: Remember Who We Are
Remember Who We Are A growth-oriented business services enterprise with more than 400 offices around the world (including partner and affiliate offices) A full service provider with a diverse suite of services to address any commercial real estate need Approximately 2.5x the size of our nearest comp
Slide 23: Appendix
CBRE CB RICHARD ELLIS Appendix
Slide 24: Reconciliation of Normalized EBITDA to EBITDA to Net Income
Reconciliation of Normalized EBITDA to EBITDA to Net Income (Loss) ($ in millions) 2006 2005 2004 2003 2002 Normalized EBITDA 652.5 461.3 300.3 183.2 130.7 Less: Merger-related and other non-recurring charges - - 25.6 36.8 - Integration costs related to acquisitions 7.6 7.1 14.4 13.6 - Income relate
Slide 25: Reconciliation of Net Income to Net Income, As Adjusted
Reconciliation of Net Income to Net Income, As Adjusted Year Ended Dec. 31, ($ in millions) 2006 2005 Net income 318.6 217.3 Amortization expense related to net revenue backlog and incentive fees acquired in acquisitions, net of tax 9.7 - Integration costs related to acquisitions, net of tax 4.6 4.5
Slide 26: CB Richard Ellis
CBRE CB RICHARD ELLIS
CB Richard Ellis Group — Investor Presentation (March 2007) on 6ix