Jones Lang LaSalle Incorporated · NYSE:JLL
Jones Lang LaSalle — Q4 2012 Earnings Presentation
25 slides from Jones Lang LaSalle's earnings presentation, February 2013
Slide 1: Supplemental Information Fourth-Quarter 2012 Earnings Call
Supplemental Information Fourth-Quarter 2012 Earnings Call
Slide 2: Market & Financial Overview
Market & Financial Overview (j Jones LANG LASALLE’
Slide 3: Prime Offices - Capital Value Clock, Q4 2011 v Q4 2012
Prime Offices - Capital Value Clock, Q4 2011 v Q4 2012 Q4 2011 Hong Kong Singapore, Paris Q4 2012 New York, Boston, Chicago Singapore, Amsterdam Los Angeles, Shanghai, Beijing Sao Paulo Amsterdam Shanghai, Washington DC, London Hong Kong Toronto Stockholm Washington, DC Milan, New York Berlin Paris
Slide 4: Prime Offices – Rental Clock, Q4 2011 v Q4 2012
Prime Offices – Rental Clock, Q4 2011 v Q4 2012 Q4 2011 Q4 2012 Shanghai, Beijing Sao Paulo Amsterdam, Paris Singapore Stockholm London, Paris Hong Kong Milan Berlin Shanghai Sydney, Moscow Moscow San Francisco Hong Kong Houston Rental Value Rental Values Rental Value Rental Values Singapore Stockho
Slide 5: Selected Business Wins and Expansions
Selected Business Wins and Expansions Global - HSBC – 58M sf - Nippon Sheet Glass – 30 countries - BP – 20M sf - Hotel Commonwealth, Boston – $79M - Xerox – 15M sf - Wells Fargo, Minneapolis – 477K sf - Yahoo! – 2.4M sf - ANR Pipeline, Houston – 180K sf - 540 W. Madison, Chicago – 1.1M sf - Audi, Me
Slide 6: Global Capital Flows for Investment Sales
Global Capital Flows for Investment Sales 2013 volumes set to approach $500 billion, up 10-15% Direct Commercial Real Estate Investment, 2005-2013 ($ in billions) 350 Exceptional end to 2012 300 pushes full year volumes slightly ahead of 2011 250 +15-20% 200 -5% 150 +15% 100 50 0 Americas EMEA Asia
Slide 7: Prime Offices – Projected Changes in Values, 2013
Prime Offices – Projected Changes in Values, 2013 Rental Values Capital Values + 10-20% San Francisco San Francisco Hong Kong, Tokyo, Sydney + 5-10% Hong Kong, Tokyo, London* Moscow, London* Beijing, Shanghai, Singapore, Sydney, Mumbai Beijing, Shanghai, Singapore, Mumbai Boston, Chicago, Los Angele
Slide 8: Financial Information
Financial Information (j Jones LANG LASALLE’
Slide 9: FY 2012 Revenue Performance
FY 2012 Revenue Performance Fee revenue ($ in millions; % change in USD) Gross contract costs Americas EMEA Asia Pacific LIM 15% (10% fee) $1,746.7 $1,525.3 $1,662.2 8% (5% fee) $1,504.4 $1,048.9 7% (10% fee) $973.7 $816.5 $875.6 $935.6 $888.0 $712.6 $780.8 4% $275.4 $285.4 2011 2012 2011 2012 2011
Slide 10: Q4 2012 Revenue Performance
Q4 2012 Revenue Performance Fee revenue ($ in millions; % change in USD) Gross contract costs Americas EMEA Asia Pacific LIM 9% (8% fee) $555.0 $509.5 $492.5 $532.7 3% (0% fee) $340.3 $352.2 18% (20% fee) $278.3 $317.7 $318.2 $236.0 $251.3 $208.7 2% $66.1 $64.6 2011 2012 2011 2012 2011 2012 2011 201
Slide 11: FY 2012 Real Estate Services Revenue
FY 2012 Real Estate Services Revenue ($ in millions; % change in local currency over FY 2011) Americas EMEA Asia Pacific Total RES Leasing $829.6 9% $250.0 11% $198.2 4% $1,277.8 9% Capital Markets & Hotels $168.5 25% $235.1 5% $109.3 15% $512.9 13% Property & Facility Management $458.7 32% $155.2 9
Slide 12: Q4 2012 Real Estate Services Revenue
Q4 2012 Real Estate Services Revenue ($ in millions; % change in local currency over Q4 2011) Americas EMEA Asia Pacific Total RES Leasing $278.9 8% $83.7 4% $76.6 10% $439.2 8% Capital Markets & Hotels $59.4 24% $94.9 9% $40.1 79% $194.4 12% Property & Facility Management $133.2 13% $42.4 1% $108.3
Slide 13: Americas Real Estate Services
Americas Real Estate Services 2012 Highlights • Full year fee revenue up 11% from 2011 • Increases in both Capital Markets and Leasing revenue outpaced the overall market indicating gains in market share • Compensation expense accelerated by elimination of the Stock Ownership Plan (“SOP”) and Stauba
Slide 14: EMEA Real Estate Services
EMEA Real Estate Services 2012 Highlights • Broad-based fee revenue increase of 9% in local currency versus 2011 led by 16% increase in Project & Development Services revenue • Solid performance in large markets and positive earnings contribution from previous loss making countries (e.g. Netherlands
Slide 15: Asia Pacific Real Estate Services
Asia Pacific Real Estate Services 2012 Highlights • Fee revenue growth of 11% in local currency vs. prior year despite decrease in overall market activity • Winning Corporate Solutions business continues to generate profitable, recurring revenue • Strong finish with significant EBITDA margin improve
Slide 16: LaSalle Investment Management
LaSalle Investment Management 2012 Highlights • Large incentive fees and equity earnings reflect good performance for clients and contributed to EBITDA margin of 25.9% • New mandates and strategic partnerships gaining traction; AUM in separate accounts up 14% vs. last year • $4.7 billion of capital
Slide 17: Solid Cash Flows and Balance Sheet Position
Solid ($ in millions) Cash Flows and Balance Sheet Position Cash Flows 2012 2011 2012 Highlights Cash from Operations $ 327 $ 211 • Significant cash generation with $105 million of net debt reduction Primary Uses Capital Expenses (1) (95) (92) • Issued $275 million, investment- New Acquisitions (28)
Slide 18: Appendix
Appendix (j Jones LANG LASALLE’
Slide 19: Fee Revenue / Expense Reconciliation
Fee Revenue / Expense Reconciliation • Reimbursable vendor, subcontractor and out-of-pocket costs reported as revenue and expense in JLL financial statements have been steadily increasing • Margins diluted as gross accounting requirements increase revenue and costs without corresponding profit • Bus
Slide 20: FY 2012 Adjusted EBITDA Performance
FY 2012 Adjusted EBITDA* Performance ($ in millions) Americas EMEA Asia Pacific LIM $201.2 $210.5 $74.9 $78.4 $78.2 $57.3 $59.7 $73.9 2011 2012 2011 2012 2011 2012 2011 2012 $436.2 $394.9 Consolidated 2011 2012 * Refer to slide 25 for Reconciliation of GAAP Net Income to Adjusted EBITDA for the twel
Slide 21: Q4 2012 Adjusted EBITDA Performance
Q4 2012 Adjusted EBITDA* Performance ($ in millions) Americas EMEA Asia Pacific LIM $94.1 $86.5 $51.4 $43.0 $36.4 $13.9 $11.1 $28.2 2011 2012 2011 2012 2011 2012 2011 2012 $179.0 $185.0 Consolidated 2011 2012 * Refer to slide 25 for Reconciliation of GAAP Net Income to Adjusted EBITDA for the three
Slide 22: FY 2012 Real Estate Services Revenue (USD)
FY 2012 Real Estate Services Revenue ($ in millions; % change in USD over FY 2011) Americas EMEA Asia Pacific Total RES Leasing $829.6 9% $250.0 6% $198.2 3% $1,277.8 7% Capital Markets & Hotels $168.5 24% $235.1 3% $109.3 15% $512.9 12% Property & Facility Management $458.7 31% $155.2 5% $398.4 9%
Slide 23: Q4 2012 Real Estate Services Revenue (USD)
Q4 2012 Real Estate Services Revenue ($ in millions; % change in USD over Q4 2011) Americas EMEA Asia Pacific Total RES Leasing $278.9 8% $83.7 3% $76.6 11% $439.2 7% Capital Markets & Hotels $59.4 23% $94.9 8% $40.1 82% $194.4 12% Property & Facility Management $133.2 13% $42.4 0% $108.3 7% $283.9
Slide 24: Reconciliation of GAAP Net Income to Adjusted Net Income and EPS
Reconciliation of GAAP Net Income to Adjusted Net Income and Earnings per Share Three Months Ended Twelve Months Ended December 31, December 31, ($ in millions) 2012 2011 2012 2011 GAAP Net income attributable to common shareholders $ 106.8 $ 84.8 $ 207.6 $ 164.0 Shares (in 000s) 44,954 44,402 44,79
Slide 25: Reconciliation of GAAP Net Income to Adjusted EBITDA
Reconciliation of GAAP Net Income to Adjusted EBITDA Three Months Ended Twelve Months Ended December 31, December 31, ($ in millions) 2012 2011 2012 2011 GAAP Net income attributable to common shareholders $ 106.8 $ 84.8 $ 207.6 $ 164.0 Interest expense, net of interest income 10.3 8.4 35.2 35.6 Pro