Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q4 2014 Earnings Presentation
25 slides from Jones Lang Lasalle's earnings presentation, February 2015
Slide 1: Supplemental Information Fourth-Quarter 2014 Earnings Call
Supplemental Information Fourth-Quarter 2014 Earnings Call
Slide 2: Market & Financial Overview
Market & Financial Overview (JL
Slide 3: JLL Research: Market Volumes & Outlook
JLL Research: Market Volumes & Outlook Investment Volumes Strength Continues; Outlook Revised HISTORICAL FORECAST Q4 2014 v. Q4 2013 FY 2014 v. FY 2013 FY 2015 v. FY 2014 Market Volumes Market Volumes Market Volumes Capital Markets(1) Americas 7% 25% ~ 15% EMEA 8% 25% -5% (2) Asia Pacific 17% 3% 5-1
Slide 4: Selected Business Wins and Expansions
Selected Business Wins and Expansions Multi-Regional Crédit Agricole CIB, 30 countries BBVA, Asia, EMEA, Mexico - Capital One, 14M sf - Industrial Portfolio, Mexico, $302M - Porsche, 286K sf - Duke Realty, Cincinnati, 2.2M sf - Ryder Systems, 600 locations - Hyatt HQ, Chicago, 235K sf - 353 North Cl
Slide 5: Prime Offices – Projected Changes in Values, 2015
Prime Offices – Projected Changes in Values, 2015 Rental Values Capital Values + 10-20% Tokyo Tokyo, Madrid Sydney, Beijing, Dubai, Boston Beijing, London*, Sydney + 5-10% Chicago, Los Angeles, New York* Dubai, Boston, Chicago, Los Angeles San Francisco, London* New York*, San Francisco, Seoul Hong
Slide 6: Financial Information
Financial Information (JL
Slide 7: Q4 2014 Revenue Performance
Q4 2014 Revenue Performance Fee revenue ($ in millions; % change in local currency) Gross contract costs Americas EMEA Asia Pacific LaSalle 15% (18% gross) $745.9 24% (20% gross) 16% (20% gross) $641.3 $556.6 $688.4 $491.8 $355.1 $604.7 $475.1 $310.4 $407.6 $302.5 $271.3 34% $76.1 $98.7 2013
Slide 8: FY 2014 Revenue Performance
FY 2014 Revenue Performance Fee revenue ($ in millions; % change in local currency) Gross contract costs Americas EMEA Asia Pacific LaSalle 18% (22% gross) $2,319.9 17% (23% gross) 11% (19% gross) $1,632.6 $1,918.6 $2,109.5 $1,322.6 $1,806.5 $1,316.2 $1,110.2 $1,118.0 $965.8 $909.1 46% $847.
Slide 9: Q4 2014 Real Estate Services Revenue
Q4 2014 Real Estate Services Revenue ($ in millions; % change in local currency over Q4 2013) Americas EMEA Asia Pacific Total RES Leasing $345.3 18% $106.9 11% $85.9 34% $538.1 19% Capital Markets & Hotels $94.1 18% $173.2 42% $60.8 5% $328.1 27% Property & Facility Management - Fee
Slide 10: FY 2014 Real Estate Services Revenue
FY 2014 Real Estate Services Revenue ($ in millions; % change in local currency over YTD 2013) Americas EMEA Asia Pacific Total RES Leasing $1,039.5 19% $295.2 9% $205.3 23% $1,540.0 17% Capital Markets & Hotels $266.6 22% $411.8 23% $141.9 (10%) $820.3 15% Property & Facility Manage
Slide 11: Americas Real Estate Services 2014 Highlights
Americas Real Estate Services 2014 Highlights • Full-year fee revenue up 18% from 2013 • Revenue growth broad-based with Leasing up 19%, Capital Markets & Hotels up 22%, Property & Facility Management up 13%, and Project & Development Services up 20% compared with 2013 • Adjusted EBITDA margin calcu
Slide 12: EMEA Real Estate Services 2014 Highlights
EMEA Real Estate Services 2014 Highlights • Full-year fee revenue up 17% from 2013 • Revenue growth driven by Capital Markets & Hotels, up 23%, and Property & Facility Management, up 21%, compared with 2013 • Adjusted EBITDA margin calculated on a fee revenue basis was 11.0% compared with 9.8% in 20
Slide 13: Asia Pacific Real Estate Services 2014 Highlights
Asia Pacific Real Estate Services 2014 Highlights • Full-year fee revenue up 11% from 2013 • Revenue growth driven by Leasing, up 23%, and Property & Facility Management, up 14%, compared with 2013 • Adjusted EBITDA margin calculated on a fee revenue basis was 10.7% compared with 10.6% in 2013 Fee R
Slide 14: LaSalle Investment Management 2014 Highlights
LaSalle Investment Management 2014 Highlights • Successful capital raising with $8.9 billion raised in 2014; a new record for LaSalle • Assets Under Management reach $53.6 billion, up from $47.6 billion a year ago • Continued incentive fee potential in future quarters; magnitude of combined incentiv
Slide 15: Solid Balance Sheet Position
Solid Balance Sheet Position ($ in millions) 2014 Highlights • Investment grade balance sheet; Baa2 (Stable) / BBB (Stable) – In December 2014, Standard & Poor’s raised JLL’s rating to “BBB” • Continued healthy net debt reduction while continuing to invest in the business – Reduced net debt by $274
Slide 16: Appendix
Appendix (JL
Slide 17: Prime Offices – Capital Value Clock, Q4 2013 v Q4 2014
Prime Offices – Capital Value Clock, Q4 2013 v Q4 2014 The Jones Lang LaSalle Property Clocks SM Q4 2013 Q4 2014 Mexico City Singapore Hong Kong, Toronto Chicago, Toronto Hong Kong Singapore, Houston Washington DC Shanghai, Washington DC, Mexico City Boston, Los Angeles Berlin, Boston, Los Angeles B
Slide 18: Prime Offices – Rental Clock, Q4 2013 v Q4 2014
Prime Offices – Rental Clock, Q4 2013 v Q4 2014 The Jones Lang LaSalle Property Clocks SM Q4 2013 Q4 2014 Toronto, Johannesburg Mexico City Amsterdam, Johannesburg Mexico City, Shanghai Toronto Stockholm Berlin, Moscow Berlin, Frankfurt Sao Paulo Houston Singapore, Houston San Francisco San Francisc
Slide 19: Q4 2014 Adjusted EBITDA Performance
Q4 2014 Adjusted EBITDA* Performance ($ in millions) Americas EMEA Asia Pacific LaSalle $124.3 $91.1 $101.0 $65.4 $55.6 $45.6 $18.5 $26.3 2013 2014 2013 2014 2013 2014 2013 2014 $297.4 $230.5 Consolidated 2013 2014 * Refer to slide 25 for Reconciliation of GAAP Net Income to Adjusted EBITDA for the
Slide 20: FY 2014 Adjusted EBITDA Performance
FY 2014 Adjusted EBITDA* Performance ($ in millions) Americas EMEA Asia Pacific LaSalle $274.6 $229.3 $144.6 $134.0 $109.9 $89.5 $97.5 $69.7 2013 2014 2013 2014 2013 2014 2013 2014 $650.8 Consolidated $498.3 2013 2014 * Refer to slide 25 for Reconciliation of GAAP Net Income to Adjusted EBITDA for t
Slide 21: Q4 2014 Real Estate Services Revenue (USD)
Q4 2014 Real Estate Services Revenue ($ in millions; % change in USD over Q4 2013) Americas EMEA Asia Pacific Total RES Leasing $345.3 17% $106.9 3% $85.9 29% $538.1 16% Capital Markets & Hotels $94.1 17% $173.2 34% $60.8 1 0% $328.1 21% Property & Facility Management - Fee $139.0 4%
Slide 22: YTD 2014 Real Estate Services Revenue (USD)
YTD 2014 Real Estate Services Revenue ($ in millions; % change in USD over YTD 2013) Americas EMEA Asia Pacific Total RES Leasing $1,039.5 18% $295.2 9% $205.3 19% $1,540.0 17% Capital Markets & Hotels $266.6 22% $411.8 24% $141.9 (13%) $820.3 15% Property & Facility Management - Fee
Slide 23: Fee Revenue / Expense Reconciliation
Fee Revenue / Expense Reconciliation • Reimbursable vendor, subcontractor and out-of-pocket costs reported as revenue and expense in JLL financial statements have been increasing steadily • Gross accounting requirements increase revenue and costs without corresponding profit • Business managed on a
Slide 24: Reconciliation of GAAP Net Income to Adjusted Net Income and Earnings per Share
Reconciliation of GAAP Net Income to Adjusted Net Income and Earnings per Share Three Months Twelve Months Ended December 31 Ended December 31 ($ in millions, except per share data) 2014 2013 2014 2013 GAAP net income attributable to common shareholders $ 193.8 $ 147.2 $ 385.7 $ 269.5 Shares (in 000
Slide 25: Reconciliation of GAAP Net Income to Adjusted EBITDA
Reconciliation of GAAP Net Income to Adjusted EBITDA Three Months Twelve Months Ended December 31 Ended December 31 ($ in millions) 2014 2013 2014 2013 GAAP net income $ 194.8 $ 147.5 $ 388.0 $ 273.4 Interest expense, net of interest income 6.7 8.1 28.3 34.7 Provision for income taxes 67.7 50.4 97.6