Jones Lang LaSalle Incorporated · NYSE:JLL
Jones Lang LaSalle — Q2 2015 Earnings Presentation
18 slides from Jones Lang LaSalle's earnings presentation, July 2015
Slide 1: Supplemental Information Earnings Call Second-Quarter 2015
Supplemental Information Earnings Call Second-Quarter 2015
Slide 2: Q2 2015 Market Volume & Outlook
Q2 2015 Market Volume & Outlook JLL Research Investment Volumes Vary by Region; Outlook Consistent in Local Currency Market Volumes Actual Forecast Capital Markets(1) (in USD) Q2 2015 v. Q2 2014 Q2 YTD 2015 v. Q2 YTD 2014 FY 2015 v. FY 2014 Americas 20 % 19% 20 % EMEA(2) 3% 3% -10-15% Asia Pacific -
Slide 3: Selected Business Wins and Expansions
Selected Business Wins and Expansions Multi-Regional Arris Group 2.8M sf Nokia Bristol-Meyers Squibb 9.1M sf Waldorf Astoria Chicago $112M Kimberly-Clark 2.2M sf Amazon.com, New Jersey 1.1M sf Americas Aon Center, Chicago $712M Foot Locker, New York 145K sf United Plaza/1650 Arch, Philadelphia $200M
Slide 4: Prime Offices – Projected Changes in Values, 2015
Prime Offices – Projected Changes in Values, 2015 Rental Values Capital Values Tokyo, Madrid + 20-30% Hong Kong, Tokyo London*, Sydney, Boston, Chicago, Los Angeles, + 10-20% New York*, San Francisco, Frankfurt, Shanghai Sydney, London*, Shanghai, Boston, Chicago, Toronto, Washington DC, Paris*, Bei
Slide 5: Q2 2015 performance
Q2 2015 performance Revenue ($ in millions) Q2 2015 YTD 2015 Asia Pac Asia Pac LaSalle Fee - $231 Fee - $419 LaSalle Consolidated $105 Consolidated Gross - $517 $203 Gross - $280 Fee - $1,182 Fee - $2,211 Gross - $1,374 Gross - $2,577 EMEA EMEA Fee - $327 Fee - $581 Gross - $417 Gross - $743 America
Slide 6: Q2 2015 Real Estate Services revenue
Q2 2015 Real Estate Services revenue ($ in millions; % change in local currency over Q2 2014) Americas EMEA Asia Pacific Total RES Leasing $263.7 6% $65.1 12% $50.2 11% $379.0 8% Capital Markets & Hotels $76.5 30% $113.2 38% $33.1 25% $222.8 33% Property & Facility $111.9 8% $50.9 (3%) $95.8 13% $25
Slide 7: YTD 2015 Real Estate Services revenue
YTD 2015 Real Estate Services revenue ($ in millions; % change in local currency over YTD 2014) Americas EMEA Asia Pacific Total RES Leasing $492.9 13% $113.5 9% $78.7 11% $685.1 12% Capital Markets & Hotels $151.3 52% $188.3 46% $60.5 31% $400.1 45% Property & Facility $226.1 9% $102.6 4% $189.7 13
Slide 8: Q2 & Year-to-date 2015 Highlights
Q2 & Year-to-date 2015 Highlights Q2 2015 AUM = $56 Billion • Successful capital raising with $948 ($ in billions) U.K. million for the quarter, $3.0 billion raised $18.0 year-to-date • Assets Under Management reach $56 Continental Europe billion, up from $50 billion a year ago Public $3.7 Securitie
Slide 9: Strong balance sheet
Strong balance sheet Balance Sheet Highlights Investment grade ratings; Baa2 (Stable) / BBB+ Balance Sheet (Stable) $ millions Q2 2015 Q4 2014 Q2 2014 ◦ JLL's credit rating upgraded to BBB+ (Stable) by Standard Cash and Cash Equivalents $ 191 $ 250 $ 151 & Poor's on July 28, 2015 ◦ Low debt cost: ye
Slide 10: Appendix
Na Donn Appendix ee \. ce ili @ JL
Slide 11: Prime Offices – Capital Value Clock, Q2 2014 v Q2 2015
Prime Offices – Capital Value Clock, Q2 2014 v Q2 2015 The Jones Lang LaSalle Property Clocks SM Americas EMEA Asia Pacific Based on notional capital values for Grade A space in CBD or equivalent. US positions relate to the overall market Source: JLL Research, July 2015 11
Slide 12: Prime Offices – Rental Clock, Q2 2014 v Q2 2015
Prime Offices – Rental Clock, Q2 2014 v Q2 2015 The Jones Lang LaSalle Property Clocks SM Americas EMEA Asia Pacific Based on rents for Grade A space in CBD or equivalent. US positions relate to the overall market Source: JLL Research, July 2015 12
Slide 13: Q2 2015 performance
Q2 2015 performance Adjusted EBITDA ($ in millions) Q2 2015 YTD 2015 Asia Pac Consolidated $20 Consolidated Asia Pac $157 $247 $28 LaSalle LaSalle $38 $66 EMEA EMEA $38 $41 Americas $61 Americas $112 Q2 Adj. EBITDA Margin, Fee Revenue YTD 2015 2014 Segment 2015 2014 11.3% 12.2% Americas 10.7% 10.1%
Slide 14: Q2 2015 Real Estate Services revenue
Q2 2015 Real Estate Services revenue ($ in millions; % change in USD over Q2 2014) Americas EMEA Asia Pacific Total RES Leasing $263.7 5% $65.1 -4% $50.2 3% $379.0 3% Capital Markets & Hotels $76.5 29% $113.2 21% $33.1 12% $222.8 22% Property & Facility $111.9 4% $50.9 -16% $95.8 3% $258.6 -1% Manag
Slide 15: YTD 2015 Real Estate Services revenue
YTD 2015 Real Estate Services revenue ($ in millions; % change in USD over YTD 2014) Americas EMEA Asia Pacific Total RES Leasing $492.9 12% $113.5 -7% $78.7 3% $685.1 8% Capital Markets & Hotels $151.3 51% $188.3 27% $60.5 18% $400.1 34% Property & Facility $226.1 6% $102.6 -9% $189.7 4% $518.4 2%
Slide 16: Fee Revenue / Expense Reconciliation ($ in millions)
Fee Revenue / Expense Reconciliation ($ in millions) • 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 • Busine
Slide 17: 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 ($ in millions) 2015 2014 2015 2014 Three Months Ended June 30 Six Months Ended June 30 GAAP net income attributable to common shareholders $ 90.1 $ 71.8 $ 132.0 $ 87.7 Shares (in 000s) 45,435 45,278 45,393 45,220 GAAP d
Slide 18: Reconciliation of GAAP Net Income to Adjusted EBITDA
Reconciliation of GAAP Net Income to Adjusted EBITDA ($ in millions) 2015 2014 2015 2014 Three Months Ended June 30 Six Months Ended June 30 GAAP net income $ 91.4 $ 72.4 $ 134.7 $ 88.5 Interest expense, net of interest income 7.6 7.6 13.6 14.3 Provision for (benefit from) income taxes 31.1 24.1 45.