Jones Lang LaSalle Incorporated · NYSE:JLL
Jones Lang LaSalle — Q2 2014 Earnings Presentation
22 slides from Jones Lang LaSalle's earnings presentation, July 2014
Slide 1: Supplemental Information Second-Quarter 2014 Earnings Call
Supplemental Information Second-Quarter 2014 Earnings Call
Slide 2: Market & Financial Overview
Market & Financial Overview ()JLL
Slide 3: Q2 & FY Capital Markets & Leasing Markets Volumes
Q2 & FY Capital Markets & Leasing Markets Volumes JLL Research 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 49% 42% ~ 15% Asia Pacific
Slide 4: Selected Business Wins and Expansions
Selected Business Wins and Expansions - Novotel, New York – $274M - Royal Bank of Scotland – 1.4M sf - Volkswagen, Poland - Desjardins – 600K sf - BNY Mellon, New York – 350K sf - Samsung Telecommunications Americas – 800K sf - Foley & Lardner, New York – 83K sf - 225 Bush, San Francisco – $350M Ame
Slide 5: Prime Offices – Projected Changes in Values, 2014
Prime Offices – Projected Changes in Values, 2014 Rental Values Capital Values Tokyo, Boston, Chicago + 10-20% Singapore Madrid, New York*, Los Angeles San Francisco, Mexico City Dubai, London*, Tokyo Dubai, London* + 5-10% Beijing, San Francisco, New York* Seoul, Sydney, Beijing Boston, Mexico City
Slide 6: Financial Information
Financial Information ()JLL
Slide 7: Q2 2014 Revenue Performance
Q2 2014 Revenue Performance Fee revenue ($ in millions; % change in local currency) Gross contract costs Americas EMEA Asia Pacific LaSalle 22% (27% gross) $545.1 24% (39% gross) $431.6 $493.6 $395.6 8% (21% gross) $407.4 $267.6 $309.0 $228.4 $267.5 13% $81.5 $71.0 $234.1 $205.0 $214.4 2013
Slide 8: YTD 2014 Revenue Performance
YTD 2014 Revenue Performance Fee revenue ($ in millions; % change in local currency) Gross contract costs Americas EMEA Asia Pacific LaSalle 21% (26% gross) $992.4 16% (31% gross) $793.3 $900.1 $707.5 9% (21% gross) $749.8 $512.6 $418.3 $482.1 12% $543.0 $444.9 $135.8 $154.0 $372.9 $388.0 20
Slide 9: Q2 2014 Real Estate Services Revenue
Q2 2014 Real Estate Services Revenue ($ in millions; % change in local currency over Q2 2013) Americas EMEA Asia Pacific Total RES Leasing $249.6 26% $67.6 7% $48.0 27% $365.2 23% Capital Markets and Hotels & Hospitality $60.1 13% $93.4 38% $29.6 (29%) $183.1 12% Property & Facility
Slide 10: YTD 2014 Real Estate Services Revenue
YTD 2014 Real Estate Services Revenue ($ in millions; % change in local currency over YTD 2013) Americas EMEA Asia Pacific Total RES Leasing $438.2 25% $121.7 7% $75.0 19% $634.9 21% Capital Markets and Hotels & Hospitality $100.3 9% $147.8 14% $51.3 (21%) $299.4 4% Property & Facili
Slide 11: LaSalle Investment Management Q2 2014 Highlights
LaSalle Investment Management Q2 2014 Highlights • Assets Under Management reach $50 billion • New capital raised of $2.3 billion through YTD June 2014 • Continued incentive fee potential as legacy funds liquidate in future quarters Revenue Q2 2014 Q2 2013 Q2 2014 AUM = $50.0 Billion ($ in millions)
Slide 12: Solid Balance Sheet Position
Solid Balance Sheet Position ($ in millions) Q2 2014 Highlights • Investment grade balance sheet; Baa2 (Stable) / BBB- (Positive) – In June 2014, Standard & Poor’s improved its outlook on JLL rating to positive from stable – Reduced net debt by $162 million from Q2 2013 • Low cost debt driving reduc
Slide 13: Appendix
Appendix @) JILL
Slide 14: Prime Offices – Capital Value Clock, Q2 2013 v Q2 2014
Prime Offices – Capital Value Clock, Q2 2013 v Q2 2014 Q2 2013 Q2 2014 Hong Kong Toronto, Mexico City Washington DC, Amsterdam Moscow Hong Kong Sydney Toronto Sydney, Singapore Sao Paulo, Paris Boston, Chicago ` Berlin Washington, DC New York, Los Angeles, Stockholm Shanghai San Francisco, Houston,
Slide 15: Prime Offices – Rental Clock, Q2 2013 v Q2 2014
Prime Offices – Rental Clock, Q2 2013 v Q2 2014 Q2 2013 Q2 2014 Mexico City Amsterdam Amsterdam Moscow Sao Paulo Shanghai Toronto Stockholm Paris Johannesburg Berlin Berlin, Moscow Johannesburg Frankfurt Milan Houston Houston San Francisco San Francisco Dallas Toronto Rental Value Rental Values Rent
Slide 16: Q2 2014 Adjusted EBITDA Performance
Q2 2014 Adjusted EBITDA* Performance ($ in millions) Americas EMEA Asia Pacific LaSalle $60.3 $46.9 $30.3 $18.1 $20.2 $22.8 $16.5 $19.0 2013 2014 2013 2014 2013 2014 2013 2014 $132.4 $101.7 Consolidated 2013 2014 * Refer to slide 22 for Reconciliation of GAAP Net Income to Adjusted EBITDA for the th
Slide 17: YTD 2014 Adjusted EBITDA Performance
YTD 2014 Adjusted EBITDA* Performance ($ in millions) Americas EMEA Asia Pacific LaSalle $90.6 $72.0 $30.8 $39.6 $21.5 $33.9 $22.0 $23.3 2013 2014 2013 2014 2013 2014 2013 2014 $184.4 $149.5 Consolidated 2013 2014 * Refer to slide 22 for Reconciliation of GAAP Net Income to Adjusted EBITDA for the s
Slide 18: Q2 2014 Real Estate Services Revenue (USD)
Q2 2014 Real Estate Services Revenue ($ in millions; % change in USD over Q2 2013) Americas EMEA Asia Pacific Total RES Leasing $249.6 26% $67.6 12% $48.0 22% $365.2 23% Capital Markets and Hotels & Hospitality $60.1 13% $93.4 48% $29.6 (30%) $183.1 15% Property & Facility Management
Slide 19: YTD 2014 Real Estate Services Revenue (USD)
YTD 2014 Real Estate Services Revenue ($ in millions; % change in USD over YTD 2013) Americas EMEA Asia Pacific Total RES Leasing $438.2 25% $121.7 12% $75.0 15% $634.9 21% Capital Markets and Hotels & Hospitality $100.3 9% $147.8 22% $51.3 (24%) $299.4 6% Property & Facility Managem
Slide 20: Fee Revenue / Expense Reconciliation
Fee Revenue / Expense Reconciliation • Reimbursable vendor, subcontractor and out-of-pocket costs reported as revenue and expense in JLL financial statements have been increasing steadily • Gross accounting requirements increase revenue and costs without corresponding profit • Business managed on a
Slide 21: Reconciliation of GAAP Net Income to Adjusted Net Income and Earnings per Share
Reconciliation of GAAP Net Income to Adjusted Net Income and Earnings per Share Three Months Six Months Ended June 30 Ended June 30 ($ in millions) 2014 2013 2014 2013 GAAP net income attributable to common shareholders $ 71.8 $ 46.3 $ 87.7 $ 59.4 Shares (in 000s) 45,278 45,141 45,220 45,091 GAAP di
Slide 22: Reconciliation of GAAP Net Income to Adjusted EBITDA
Reconciliation of GAAP Net Income to Adjusted EBITDA Three Months Six Months Ended June 30 Ended June 30 ($ in millions) 2014 2013 2014 2013 GAAP net income $ 72.4 $ 49.5 $ 88.5 $ 62.7 Interest expense, net of interest income 7.7 9.0 14.3 17.0 Provision for (benefit from) income taxes 24.1 16.4 (5.0