Jones Lang LaSalle Incorporated · NYSE:JLL
Jones Lang LaSalle — Q3 2014 Earnings Presentation
22 slides from Jones Lang LaSalle's earnings presentation, October 2014
Slide 1: Supplemental Information Third-Quarter 2014 Earnings Call
Supplemental Information Third-Quarter 2014 Earnings Call
Slide 2: Market & Financial Overview
Market & Financial Overview ()JLL
Slide 3: Capital Markets & Leasing Markets Volumes
Capital Markets & Leasing Markets Volumes JLL Research Investment Volumes Maintaining Healthy Momentum HISTORICAL FORECAST Q3 2014 v. Q3 2013 FY 2014 v. FY 2013 FY 2015 v. FY 2014 Market Volumes Market Volumes Market Volumes Capital Markets(1) Americas 25% 25-30% 15-20% EMEA 13% ~ 15% 5-10% Asia Pac
Slide 4: Selected Business Wins and Expansions
Selected Business Wins and Expansions Multi-Regional CACIB – 30+ countries Technip – 5.8M sf UCB Pharma – 2.9M sf - American Red Cross – 13.8M sf - 110 N. Wacker, Chicago – $116M - Google – 2.9M sf - Morgan Lewis, Washington, D.C. – 270K sf - Xerox – 5.7M sf - Pier 1 Imports, Dallas – 409K sf - U.S.
Slide 5: Prime Offices – Projected Changes in Values, 2015
Prime Offices – Projected Changes in Values, 2015 Rental Values Capital Values + 10-20% Tokyo, Beijing Tokyo, Beijing San Francisco, New York*, Boston San Francisco, New York*, Boston + 5-10% Chicago, Los Angeles, London* Chicago, Los Angeles, London* Sydney, Dubai Sydney, Seoul, Madrid, Dubai Hong
Slide 6: Financial Information
Financial Information ()JLL
Slide 7: Q3 2014 Revenue Performance
Q3 2014 Revenue Performance Fee revenue ($ in millions; % change in local currency) Gross contract costs Americas EMEA Asia Pacific LaSalle 16% (21% gross) $581.6 $484.1 $521.0 9% (12% gross) $452.1 $318.4 $368.6 7% (15% gross) $298.2 $237.0 $272.9 121% $265.7 $203.4 $218.5 $162.4 $73.9 2013
Slide 8: YTD 2014 Revenue Performance
YTD 2014 Revenue Performance Fee revenue ($ in millions; % change in local currency) Gross contract costs Americas EMEA Asia Pacific LaSalle 19% (24% gross) $1,573.9 13% (24% gross) $1,076.1 $1,277.3 $1,421.0 8% (19% gross) $830.9 $755.0 $1,201.8 $710.5 $841.2 $655.4 50% $576.4 $606.5 $316.5
Slide 9: Q3 2014 Real Estate Services Revenue
Q3 2014 Real Estate Services Revenue ($ in millions; % change in local currency over Q3 2013) Americas EMEA Asia Pacific Total RES Leasing $255.9 10% $66.6 11% $44.4 9% $366.9 10% Capital Markets & Hotels $72.3 55% $90.8 5% $29.9 (16%) $193.0 15% Property & Facility Management - Fee
Slide 10: YTD 2014 Real Estate Services Revenue
YTD 2014 Real Estate Services Revenue ($ in millions; % change in local currency over YTD 2013) Americas EMEA Asia Pacific Total RES Leasing $694.1 19% $188.3 8% $119.5 15% $1,001.9 17% Capital Markets & Hotels $172.5 25% $238.6 11% $81.2 (19%) $492.3 8% Property & Facility Managemen
Slide 11: LaSalle Investment Management Q3 2014 Highlights
LaSalle Investment Management Q3 2014 Highlights • Assets Under Management reach $53 billion • New capital raised of $7.3 billion YTD through September 2014 • Continued incentive fee potential as legacy funds liquidate in future quarters Revenue Q3 2014 Q3 2013 Q3 2014 AUM = $53.0 Billion ($ in mill
Slide 12: Solid Balance Sheet Position
Solid Balance Sheet Position ($ in millions) Year-to-Date Highlights • Investment grade balance sheet; Baa2 (Stable) / BBB- (Positive) – In June 2014, Standard & Poor’s revised its outlook on JLL rating to Positive from Stable – Reduced net debt by $248 million from Q3 2013 • Semi-annual dividend in
Slide 13: Appendix
Appendix (JILL
Slide 14: Prime Offices – Capital Value Clock, Q3 2013 v Q3 2014
Prime Offices – Capital Value Clock, Q3 2013 v Q3 2014 The Jones Lang LaSalle Property Clocks SM Q3 2013 Q3 2014 Toronto, Washington DC Hong Kong Hong Kong, Amsterdam Chicago, Los Angeles Singapore, Mexico City, Toronto Singapore Shanghai, Washington DC Boston, New York, Stockholm Berlin Sao Paulo B
Slide 15: Prime Offices – Rental Clock, Q3 2013 v Q3 2014
Prime Offices – Rental Clock, Q3 2013 v Q3 2014 The Jones Lang LaSalle Property Clocks SM Q3 2013 Q3 2014 Amsterdam Moscow, Toronto Mexico City, Shanghai Stockholm Sao Paulo Berlin, Frankfurt Johannesburg Berlin, Moscow Johannesburg Houston Houston San Francisco San Francisco Toronto Dallas Frankfur
Slide 16: Q3 2014 Adjusted EBITDA Performance
Q3 2014 Adjusted EBITDA* Performance ($ in millions) Americas EMEA Asia Pacific LaSalle $56.2 $59.6 $68.1 $23.0 $22.7 $21.9 $18.6 $17.2 2013 2014 2013 2014 2013 2014 2013 2014 $169.0 Consolidated $118.3 2013 2014 * Refer to slide 22 for Reconciliation of GAAP Net Income to Adjusted EBITDA for the th
Slide 17: YTD 2014 Adjusted EBITDA Performance
YTD 2014 Adjusted EBITDA* Performance ($ in millions) Americas EMEA Asia Pacific LaSalle $150.3 $128.3 $107.7 $53.5 $51.1 $44.5 $43.9 $41.9 2013 2014 2013 2014 2013 2014 2013 2014 $353.4 Consolidated $267.8 2013 2014 * Refer to slide 22 for Reconciliation of GAAP Net Income to Adjusted EBITDA for th
Slide 18: Q3 2014 Real Estate Services Revenue (USD)
Q3 2014 Real Estate Services Revenue ($ in millions; % change in USD over Q3 2013) Americas EMEA Asia Pacific Total RES Leasing $255.9 10% $66.6 13% $44.4 10% $366.9 11% Capital Markets & Hotels $72.3 55% $90.8 10% $29.9 (15%) $193.0 17% Property & Facility Management - Fee $106.2
Slide 19: YTD 2014 Real Estate Services Revenue (USD)
YTD 2014 Real Estate Services Revenue ($ in millions; % change in USD over YTD 2013) Americas EMEA Asia Pacific Total RES Leasing $694.1 19% $188.3 12% $119.5 13% $1,001.9 17% Capital Markets & Hotels $172.5 24% $238.6 17% $81.2 (21%) $492.3 10% Property & Facility Management - Fee $
Slide 20: 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 21: 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 Nine Months Ended September 30 Ended September 30 ($ in millions, except per share data) 2014 2013 2014 2013 GAAP net income attributable to common shareholders $ 104.3 $ 62.9 $ 192.0 $ 122.3 Shares (in 000s
Slide 22: Reconciliation of GAAP Net Income to Adjusted EBITDA
Reconciliation of GAAP Net Income to Adjusted EBITDA Three Months Nine Months Ended September 30 Ended September 30 ($ in millions) 2014 2013 2014 2013 GAAP net income $ 104.7 $ 63.1 $ 193.2 $ 125.8 Interest expense, net of interest income 7.4 9.6 21.7 26.6 Provision for income taxes 34.9 20.9 29.9