Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q3 2013 Earnings Presentation
23 slides from Jones Lang Lasalle's earnings presentation, Oct 31, 2013
Slide 1: Supplemental Information Third-Quarter Earnings Call 2013
Supplemental Information Third-Quarter Earnings Call 2013
Slide 2: Market & Financial Overview
Market & Financial Overview JONES LANG LASALLE
Slide 3: Q3 and YTD Capital Markets & Leasing Markets Volumes
Q3 and YTD Capital Markets & Leasing Markets Volumes Q3 2013 v. Q3 2012 YTD 2013 v. YTD 2012 Gross Absorption Gross Absorption Leasing Americas (U.S. only) 11% 4% EMEA (Europe only) -9% -4% Asia Pacific (select markets) 7% -12% Total 5% Flat Q3 2013 v. Q3 2012 YTD 2013 v. YTD 2012 Market Volumes Mar
Slide 4: Selected Business Wins and Expansions
Selected Business Wins and Expansions 4 Americas EMEA Asia Pacific - Northern Trust – 894K sf - AARP – 862K sf - ECHO Realty Portfolio – $300M - CBL Mall Portfolio - Nordstrom, New York – 285K sf - 300 S. Wacker Drive, Chicago – 512K sf - Silesia City Center, Poland – €412M - IQ Winnersh, UK – £245M
Slide 5: Full-Year Capital Markets & Leasing Markets Volumes
Full-Year Capital Markets & Leasing Markets Volumes YTD 2013 v. YTD 2012 FY 2013 v. FY 2012 Gross Absorption Gross Absorption Leasing Americas (U.S. only) 4% 5-10% EMEA (Europe only) -4% Flat Asia Pacific (select markets) -12% -10-15% Total Flat Flat YTD 2013 v. YTD 2012 FY 2013 v. FY 2012 Market Vo
Slide 6: Prime Offices – Projected Changes in Values, 2014
Prime Offices – Projected Changes in Values, 2014 6 + 10-20% + 5-10% + 0-5% - 0-5% - 5-10% San Francisco, Dubai, London* Hong Kong, Singapore, New York Mumbai, Beijing, Los Angeles Brussels, Shanghai, Moscow Washington DC, Mexico City, Toronto Seoul, Sydney, Chicago, Boston Madrid, Paris*, Stockholm
Slide 7: Financial Information
Financial Information JONES LANG LASALLE
Slide 8: Q3 2013 Revenue Performance
$82.3 $73.9 2012 2013 -9% $877.9 $988.5 2012 2013 $408.7 $452.1 2012 2013 8 Q3 2013 Revenue Performance Note: Equity earnings of $10.7M and $6.6M in 2012 and 2013, respectively, are included in segment results, however, excluded from Consolidated totals. Year-over-year increases shown fee-based hav
Slide 9: YTD 2013 Revenue Performance
$2,474.8 $2,677.3 2012 2013 $1,117.1 $1,201.7 2012 2013 9 YTD 2013 Revenue Performance Americas EMEA Asia Pacific LIM Consolidated ($ in millions; % change in USD) 9% (8% fee) $529.5 $576.4 2012 2013 $220.9 $209.8 2012 2013 $629.8 $710.5 2012 2013 16% (13% fee) 15% (14% fee) -4% 11% (9% fee) $1,27
Slide 10: Q3 2013 Real Estate Services Revenue
10 Q3 2013 Real Estate Services Revenue ($ in millions; % change in local currency over Q3 2012) Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). Fee revenue presentation of Property & Facility Management, Project & Development Services
Slide 11: YTD 2013 Real Estate Services Revenue
11 YTD 2013 Real Estate Services Revenue ($ in millions; % change in local currency over YTD 2012) Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). Fee revenue presentation of Property & Facility Management, Project & Development Service
Slide 12: Q3 2013 Highlights LaSalle Investment Management
Q3 2013 Highlights LaSalle Investment Management Note: AUM data reported on a one-quarter lag. • Strong investment performance track record supporting successful capital raising; $3.3 billion raised YTD 2013 • Healthy equity earnings and incentive fees although lower than very robust Q3 2012 results
Slide 13: Solid Balance Sheet Position
Solid Balance Sheet Position Q3 2013 Highlights ($ in millions) 13 Q3 Q2 Q1 Q4 Balance Sheet 2013 2013 2013 2012 Cash and Cash Equivalents $ 120 $ 122 $ 133 $ 152 Short-Term Borrowings 35 51 38 32 Credit Facility 445 479 470 169 Net Bank Debt $ 360 $ 408 $ 375 $ 49 Long-Term Senior Notes 275 275 275
Slide 14: Appendix
Appendix JONES LANG LASALLE
Slide 15: Prime Offices – Capital Value Clock, Q3 2012 v Q3 2013
Capital Value growth slowing Capital Value growth accelerating 15 Prime Offices – Capital Value Clock, Q3 2012 v Q3 2013 Americas EMEA Asia Pacific Q3 2012 Q3 2013 As of Q3 2013 The Jones Lang LaSalle Property Clocks SM Milan Madrid Brussels, Seoul Paris, Hong Kong Amsterdam, Singapore, Shanghai New
Slide 16: Prime Offices – Rental Clock, Q3 2012 v Q3 2013
Rental Value growth accelerating Rental Value growth slowing 16 Prime Offices – Rental Clock, Q3 2012 v Q3 2013 As of Q3 2013 The Jones Lang LaSalle Property Clocks SM Americas EMEA Asia Pacific Q3 2012 Q3 2013 Madrid Johannesburg, New York Mexico City, Boston, Mumbai Frankfurt, Dubai, Istanbul Chic
Slide 17: Fee Revenue / Expense Reconciliation
Fee Revenue / Expense Reconciliation Note: Consolidated revenue and fee revenue exclude equity earnings (losses). Restructuring and acquisition charges and intangible amortization related to the King Sturge acquisition are excluded from operating expenses and adjusted operating income margin. • Reim
Slide 18: Q3 2013 Adjusted EBITDA Performance
$53.1 2012 2013 18 Q3 2013 Adjusted EBITDA* Performance Americas EMEA Asia Pacific LIM Consolidated $102.4 2012 2013 $118.3 * Refer to slide 23 for Reconciliation of GAAP Net Income to Adjusted EBITDA for the three months ended September 30, 2012, and 2013, for details relative to these adjusted EBI
Slide 19: YTD 2013 Adjusted EBITDA Performance
19 YTD 2013 Adjusted EBITDA* Performance Americas EMEA Asia Pacific LIM Consolidated $252.1 $267.8 2012 2013 * Refer to slide 23 for Reconciliation of GAAP Net Income to Adjusted EBITDA for the nine months ended September 30, 2012, and 2013, for details relative to these adjusted EBITDA calculations
Slide 20: Q3 2013 Real Estate Services Revenue (USD)
20 Q3 2013 Real Estate Services Revenue ($ in millions; % change in USD over Q3 2012) Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). Fee revenue presentation of Property & Facility Management, Project & Development Services and Total R
Slide 21: YTD 2013 Real Estate Services Revenue (USD)
21 YTD 2013 Real Estate Services Revenue ($ in millions; % change in USD over YTD 2012) Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). Fee revenue presentation of Property & Facility Management, Project & Development Services and Total
Slide 22: Reconciliation of GAAP Net Income to Adjusted Net Income and EPS
22 Reconciliation of GAAP Net Income to Adjusted Net Income Three Months Ended September 30 Nine Months Ended September 30 ($ in millions) 2013 2012 2013 2012 GAAP net income attributable to common shareholders $ 62.9 $ 49.5 $ 122.3 $ 100.7 Shares (in 000s) 45,063 44,827 45,071 44,756 GAAP diluted e
Slide 23: Reconciliation of GAAP Net Income to Adjusted EBITDA
23 Reconciliation of GAAP Net Income to Adjusted EBITDA Three Months Ended September 30 Nine Months Ended September 30 ($ in millions) 2013 2012 2013 2012 GAAP net income $ 63.1 $ 49.7 $ 125.8 $ 101.6 Interest expense, net of interest income 9.6 10.0 26.6 24.8 Provision for income taxes 20.9 16.9 41