Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q4 2013 Earnings Presentation
26 slides from Jones Lang Lasalle's earnings presentation, Jan 30, 2014
Slide 1: Supplemental Information Fourth-Quarter Earnings Call 2013
Supplemental Information Fourth-Quarter Earnings Call 2013
Slide 2: Market & Financial Overview
Market & Financial Overview JONES LANG LASALLE
Slide 3: 2013 Q4 and FY Capital Markets & Leasing Markets Volumes
2013 Q4 and FY Capital Markets & Leasing Markets Volumes Q4 2013 v. Q4 2012 FY 2013 v. FY 2012 Gross Absorption Gross Absorption Leasing Americas (U.S. only) 14% 7% EMEA (Europe only) -7% -4% Asia Pacific (select markets) -9% -12% Total 4% 1% Q4 2013 v. Q4 2012 FY 2013 v. FY 2012 Market Volumes Mark
Slide 4: Selected Business Wins and Expansions
Selected Business Wins and Expansions 4 Americas EMEA Asia Pacific Mutil-Regional JPMorgan Chase – 27M sf - Metlife, Chicago – 617K sf - Coronado Bay Club, San Diego – US$ 160M - Blackstone Hotel Portfolio, U.S. – US$ 186M - Radisson Fisherman’s Wharf, San Francisco – US$ 132M - Deka Immobilien, Pol
Slide 5: 2014 Capital Markets & Leasing Markets Volumes
2014 Capital Markets & Leasing Markets Volumes FY 2013 v. FY 2012 FY 2014 v. FY 2013 Gross Absorption Gross Absorption Leasing Americas (U.S. only) 7% 5-10% EMEA (Europe only) -4% 5-10% Asia Pacific (select markets) -12% 5-10% Total 1% 5-10% FY 2013 v. FY 2012 FY 2014 v. FY 2013 Market Volumes Marke
Slide 6: Prime Offices – Projected Changes in Values, 2014
Prime Offices – Projected Changes in Values, 2014 6 *New York – Midtown, London – West End, Paris - CBD. Nominal rates in local currency. Source: Jones Lang LaSalle Research, January 2014 + 10-20% + 5-10% + 0-5% - 0-5% - 5-10% Singapore Capital Values Rental Values Sao Paulo Tokyo, New York*, San Fr
Slide 7: Financial Information
Financial Information JONES LANG LASALLE
Slide 8: Q4 2013 Revenue Performance
$321.8 $407.6 2012 2013 $529.1 $604.7 2012 2013 $251.3 $271.3 2012 2013 8 Q4 2013 Revenue Performance Note: Equity earnings of $1.4M and $10.2M in 2012 and 2013, respectively, are included in segment results, however, excluded from Consolidated totals. Year-over-year increases shown fee-based have b
Slide 9: FY 2013 Revenue Performance
$3,640.2 $4,026.8 2012 2013 $285.4 $285.9 2012 2013 $780.8 $847.7 2012 2013 17% (14% fee) $951.8 $1,118.0 2012 2013 $1,646.0 $1,806.5 2012 2013 9 FY 2013 Revenue Performance Americas EMEA Asia Pacific LIM Consolidated ($ in millions; % change in local currency) $1,918.6 $1,723.0 $1,322.6 $1,072.6
Slide 10: Q4 2013 Real Estate Services Revenue
10 Q4 2013 Real Estate Services Revenue ($ in millions; % change in local currency over Q4 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: FY 2013 Real Estate Services Revenue
11 FY 2013 Real Estate Services Revenue ($ in millions; % change in local currency over FY 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 12: Americas Real Estate Services 2013 Highlights
Americas Real Estate Services 2013 Highlights ($ in millions) United States 89% Brazil 2% Canada 2% Mexico 2% Other Americas 5% Revenue by Geography Fee Revenue by Service Line 2013 2012 Leasing $ 879 $ 830 Capital Markets & Hotels 217 168 Property & Facility Management 408 359 Project & Development
Slide 13: EMEA Real Estate Services 2013 Highlights
EMEA Real Estate Services 2013 Highlights Revenue by Geography Fee Revenue by Service Line 2013 2012 Leasing $ 272 $ 250 Capital Markets & Hotels 333 235 Property & Facility Management 193 171 Project & Development Services 117 107 Advisory, Consulting & Other 204 189 Total Operating Revenue $ 1,119
Slide 14: Asia Pacific Real Estate Services 2013 Highlights
Asia Pacific Real Estate Services 2013 Highlights Revenue by Geography Fee Revenue by Service Line 2013 2012 Leasing $ 179 $ 199 Capital Markets & Hotels 158 109 Property & Facility Management 348 320 Project & Development Services 67 67 Advisory, Consulting & Other 96 86 Total Operating Revenue $ 8
Slide 15: LaSalle Investment Management 2013 Highlights
LaSalle Investment Management Note: AUM data reported on a one-quarter lag. 2013 Highlights Q4 2013 AUM = $47.6 Billion U.K. $15.1 Continental Europe $4.8 North America $12.5 Asia Pacific $4.8 Public Securities $10.4 Revenue 2013 2012 Advisory Fees $ 223 $ 228 Transaction Fees & Other 18 10 Incentiv
Slide 16: Solid Balance Sheet Position
Solid Balance Sheet Position 2013 Highlights ($ in millions) 16 December Balance Sheet 2013 2012 2011 Cash and Cash Equivalents $ 153 $ 152 $ 184 Short-Term Borrowings 25 32 65 Credit Facility 155 169 463 Net Bank Debt $ 27 $ 49 $ 344 Long-Term Senior Notes 275 275 - Deferred Business Acquisition Ob
Slide 17: Appendix
Appendix JONES LANG LASALLE
Slide 18: Prime Offices – Capital Value Clock, Q4 2012 v Q4 2013
18 Prime Offices – Capital Value Clock, Q4 2012 v Q4 2013 Capital value growth slowing Capital value growth accelerating Capital values bottoming out Capital values falling Notional capital values based on rents and yields for Grade A space in CBD or equivalent. In local currency. Source: Jones Lang
Slide 19: Prime Offices – Rental Clock, Q4 2012 v Q4 2013
19 Prime Offices – Rental Clock, Q4 2012 v Q4 2013 Americas EMEA Asia Pacific Rental value growth slowing Rental value growth accelerating Rental values bottoming out Rental values falling Q4 2013 Based on rents for Grade A space in CBD or equivalent. US positions relate to the overall market Source
Slide 20: Q4 2013 Adjusted EBITDA Performance
20 Q4 2013 Adjusted EBITDA* Performance Americas EMEA Asia Pacific LIM Consolidated * Refer to slide 25 for Reconciliation of GAAP Net Income to Adjusted EBITDA for the three months ended December 31, 2012, and 2013, for details relative to these adjusted EBITDA calculations. Segment EBITDA is calcu
Slide 21: FY 2013 Adjusted EBITDA Performance
21 FY 2013 Adjusted EBITDA* Performance Americas EMEA Asia Pacific LIM Consolidated * Refer to slide 25 for Reconciliation of GAAP Net Income to Adjusted EBITDA for the twelve months ended December 31, 2012, and 2013, for details relative to these adjusted EBITDA calculations. Segment EBITDA is calc
Slide 22: Q4 2013 Real Estate Services Revenue (USD)
22 Q4 2013 Real Estate Services Revenue ($ in millions; % change in USD over Q4 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 23: FY 2013 Real Estate Services Revenue (USD)
23 FY 2013 Real Estate Services Revenue ($ in millions; % change in USD over FY 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 24: 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 adjusted operating income margin. • Reimbursable vendor, subcon
Slide 25: Reconciliation of GAAP Net Income to Adjusted Net Income and EPS
25 Reconciliation of GAAP Net Income to Adjusted Net Income Three Months Ended December 31 Twelve Months Ended December 31 ($ in millions) 2013 2012 2013 2012 GAAP net income attributable to common shareholders $ 147.2 $ 106.8 $ 269.5 $ 207.6 Shares (in 000s) 45,146 44,954 45,072 44,799 GAAP diluted
Slide 26: Reconciliation of GAAP Net Income to Adjusted EBITDA
26 Reconciliation of GAAP Net Income to Adjusted EBITDA Three Months Ended December 31 Twelve Months Ended December 31 ($ in millions) 2013 2012 2013 2012 GAAP net income $ 147.5 $ 107.3 $ 273.4 $ 208.8 Interest expense, net of interest income 8.1 10.3 34.7 35.2 Provision for income taxes 50.4 34.7