Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Investor Presentation (August 2014)
30 slides from Jones Lang Lasalle's investor presentation, Aug 28, 2014
Slide 1: Investor Presentation August 2014
Investor Presentation 53,000 employees, 200 offices, 75 countries, 1 global platform August 2014
Slide 2: Who we are: Diverse Revenue Sources and Differentiators
Diverse Revenue Sources Americas LaSalle Asia Pacific EMEA Our Differentiators • Growth-oriented, globally integrated firm o Advisor and service provider o Local, regional and global market execution o Corporate outsourcing partner o Premier global real estate investment (LaSalle) • Operational exce
Slide 3: How we got here - premier brand and global platform
Jones Lang Wootton founded 1783 1968 1997 1999 LaSalle Partners founded LaSalle Partners initial public offering LaSalle Partners and Jones Lang Wootton merge to create Jones Lang LaSalle Integrated global platform (NYSE ticker “JLL”) 2008 The Staubach Company and Jones Lang LaSalle combine operatio
Slide 4: What we have accomplished
Adjusted Operating Income ~7x $389 $59 2003 2013 Fee Revenue ~4x $4,027 $942 2003 2013 Note: All amounts in $ millions. 2003 market cap based on peak share price in the year; Current market cap based on August 2014 share price Long history of profitable revenue growth • 10-year compound annual rev
Slide 5: Diversified and integrated global services
2013 Fee Revenue = $4.0B Global Diversification1 Leasing Advisory & Other LaSalle Inv. Mgmt. Property & Facility Mgmt. Project & Development Services Capital Markets EMEA (32%) Other Asia United Kingdom France Germany Other Europe Japan Greater China (incl. Hong Kong) Australia India Singapore Asia
Slide 6: Half-Year 2014 update
Half-Year 2014 update Highlights • Strong start in first half of 2014 o Consolidated fee revenue of $2.0 billion, up 16% o Adjusted EPS of $2.07, up 38% • Leasing revenue; strong growth and improved outlook o Demonstrates continued market share expansion o JLL Research predicts improving global leas
Slide 7: Investment thesis
• Long-term revenue growth • Market share gains • Margin accretion Growth Focused • Infrastructure leverage • Occupancy • IT investments Productivity Mindset • Superior client relationships • Collaborative, experienced and deep leadership bench • Highest ethical standards and commitment to diversity
Slide 8: Our global strategy for continued success
Our global strategy for continued success JLL Actions • Balance top-line growth, platform investments and productivity to maximize profit • Leverage global positions to grow market share and invest strategically as industry consolidates • Increase productivity and manage costs to improve margins • M
Slide 9: Capital Markets & Leasing Markets Volumes
Capital Markets & Leasing Markets Volumes Leasing Activity Uneven; Signs of Improvement Investment Volume Strength Varies HISTORICAL FORECAST Q2 2014 v. Q2 2013 Q2 TTM 2014 v. Q2 TTM 2013 FY 2014 v. FY 2013 Market Volumes Market Volumes Market Volumes Capital Markets(1) Americas 30% 34% ~ 25% EMEA 4
Slide 10: G1 - Scale and leadership in local markets
G1 - Scale and leadership in local markets *July 2008: Staubach Company acquired, annual revenue = $375 million **May 2011: King Sturge acquired, annual revenue = $260 million Asia Pacific EMEA Americas ($ in millions) Competitive Advantages • Leasing: Proven market share growth o Transformative Sta
Slide 11: G2 - Global outsourcing propels Corporate Solutions
G2 - Global outsourcing propels Corporate Solutions 2013 JLL Client Wins Wins 59 Wins 43 Expansions 18 Renewals 17 Large Corporations Middle Market Competitive Advantages • Transformative outsourcing & workplace optimization • Integrated expertise across services & geographies to capitalize on marke
Slide 12: G3 - Capturing market share in growing global capital flows
* May 2011: King Sturge acquired, annual revenue = $260 million Asia Pacific EMEA Americas ($ in millions) Competitive Advantages • Strong market positions • Significant investment to grow US platform • King Sturge expanded UK and EMEA capabilities • Increased Asia Pacific transparency driving oppor
Slide 13: G4 - Performance drives LaSalle Investment Management
$178 $245 $242 $238 $245 $228 $223 $0 $100 $200 $300 2006 2007 2008 2009 2010 2011 2012 2013 2006 to 2013 Advisory Fees ($ millions) Building Advisory Fees in Healthy Markets Global Financial Crisis Stabilized Advisory Fees G4 - Performance drives LaSalle Investment Management Competitive Advantages
Slide 14: Consolidated earnings scorecard
2012 $245M $5.48 $340M / 9.3% $3.6B US GAAP: $208M US GAAP: $4.63 $289M / 8.0% Gross revenue: $3.9B FY 2013 Performance Notes: (1) 2013 and 2012 adjusted for restructuring and intangible amortization. Margin is calculated on a fee revenue basis. (2) Percentage growth reflective of change in local cu
Slide 15: Balance Sheet
• Investment grade balance sheet; Baa2 / BBB- (Positive) o In June 2014, Standard & Poor’s improved its outlook on JLL rating to Positive from Stable o Low debt cost: FY 2013 net interest expense of $34.7m down from $35.2m o Renewed bank credit facility in October 2013; increased size to $1.2 billio
Slide 16: Full Year 2013 Real Estate Services Revenue
Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). Fee revenue presentation of Property & Facility Management, Project & Development Services and Total RES Operating Revenue excludes gross contract costs. ($ in millions; % change in local
Slide 17: Americas Real Estate Services
2013 Fee Revenue Operating Income $184M Operating Income Margin 10.2% EBITDA $229M EBITDA Margin 12.7% Gross revenue : $1.9B 2012 $167M 10.2% $209M 12.7% $1.6B $1.8B FY 2013 Performance 2013 Revenue Contribution Note: Margin is calculated on a fee revenue basis. See Appendix for calculation of fee r
Slide 18: EMEA Real Estate Services
2013 Fee Revenue Adj. Operating Income $92M Adj. Operating Income Margin 8.2% EBITDA $110M EBITDA Margin 9.8% Gross revenue : $1.3B 2012 $59M 6.2% $76M 8.0% $952M $1.1B FY 2013 Performance 2013 Revenue Contribution Note: Operating income has been adjusted to exclude $2 and $5 million of King Sturge
Slide 19: Asia Pacific Real Estate Services
Asia Pacific Real Estate Services 2013 Fee Revenue Operating Income $77M Operating Income Margin 9.1% EBITDA $90M EBITDA Margin 10.6% Gross revenue : $966M 2012 $65M 8.4% $78M 10.0% $781M $848M FY 2013 Performance 2013 Revenue Contribution Note: Margin is calculated on a fee revenue basis. See Appen
Slide 20: LaSalle Investment Management
2013 Fee Revenue Operating Income $68M Operating Income Margin 23.7% EBITDA $70M EBITDA Margin 24.4% 2012 $72M 25.2% $74M 25.9% $285M • Winning new mandates and clients while selling vintage funds for investor performance and JLL equity earnings • Advisory fee outlook remains stable for 2014 with lo
Slide 21: Appendix
Appendix
Slide 22: JLL Property Clocks
as of Q2 2014 Leasing Values Asia Pacific EMEA Americas as of Q2 2014 Capital Values JLL Property ClocksSM Capital Value growth slowing Capital Value growth accelerating Capital Values bottoming out Capital Values falling Hong Kong Sydney, Singapore Shanghai London Seoul Tokyo Mumbai, Beijing Amster
Slide 23: Consolidating industry leads to JLL opportunity
Consolidating industry leads to JLL opportunity Transformative Results The Staubach Company King Sturge Meghraj Trinity Funds Management Strategy Establish leading U.S. local market tenant rep position Strengthen local market scale, particularly in the UK Augment India corporate business with leadin
Slide 24: Real Estate Services Revenue - Q2 2014
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 RES Operating Revenue excludes gross contract costs. Leasing $249.6 26% $67.6 7% $4
Slide 25: Real Estate Services Revenue - Six Months 2014
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 RES Operating Revenue excludes gross contract costs. Leasing $438.2 25% $121.7 7% $
Slide 26: Real Estate Services Revenue - Full Year 2013
($ in millions; % change in USD over Full Year 2012) Full Year 2013 Real Estate Services Revenue 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 27: Fee revenue reconciliation
($ in millions) 2014 2013 2014 2013 Consolidated Revenue 1,277.2$ 989.4$ 2,314.6$ 1,845.4$ Consolidated Operating Expenses 1,185.5 923.6 2,238.2 1,759.5 Adjusted Operating Income Margin 7.7% 7.4% 5.1% 5.2% Gross Contract Costs: Property & Facility Management 50.8 23.8 90.7 43.0 Project & Development
Slide 28: Reconciliation of GAAP net income to adjusted net income and EPS
2014 2013 2013 2012 71.8$ 46.3$ 87.7$ 59.4$ 45,278 45,141 45,220 45,091 1.58$ 1.03$ 1.94$ 1.32$ 71.8$ 46.3$ 87.7$ 59.4$ 4.1 5.0 5.2 7.4 0.4 0.4 0.9 0.8 76.3$ 51.7$ 93.8$ 67.6$ 45,278 45,141 45,220 45,091 1.68$ 1.15$ 2.07$ 1.50$ Adjusted earnings per share Three Months Ended June 30, Six Months Ended
Slide 29: Reconciliation of GAAP operating income to adjusted EBITDA
Reconciliation of GAAP operating income to adjusted operating income and net income to adjusted EBITDA 2014 2013 2014 2013 91.7$ 65.8$ 76.4$ 85.9$ 5.5 6.6 41.4 9.8 0.6 0.6 1.1 1.1 97.8 73.0 118.9 96.8 72.4$ 49.5$ 88.5$ 62.7$ 7.7 9.0 14.3 17.0 24.1 16.4 (5.0) 20.8 22.8 20.2 45.2 39.3 127.0$ 95.1$ 143
Slide 30: Forward-looking statements
Statements in this presentation regarding, among other things, future financial results and performance, achievements, plans and objectives and dividend payments may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements i
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