Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - JONES LANG LASALLE INC | d8k.htm |
| EX-99.1 - PRESS RELEASE - JONES LANG LASALLE INC | dex991.htm |
 Supplemental Information
Second Quarter
Earnings Call 2010
EXHIBIT 99.2 |
 Market & Financial Overview |
 London,
Washington DC
Seoul, Singapore,
Toronto
Detroit,
Shanghai
Beijing
Capital Value
growth slowing
Capital Value
growth
accelerating
Capital Value
bottoming out
Capital Value
falling
Americas
EMEA
Asia Pacific
Hong Kong
Detroit
Amsterdam, Brussels,
Dallas,
Mumbai,
Philadelphia,
Stockholm,
Tokyo
Shanghai
Capital Values
Q2 2009
Q2 2010
Capital Value
growth slowing
Capital Value
falling
Capital Value
growth
accelerating
Capital Value
bottoming out
Sydney
Singapore
As of Q2 2010
The Jones Lang LaSalle Property Clocks
SM
Dallas,
Moscow
Chicago,
Brussels,
Philadelphia,
Tokyo
Berlin, Milan,
Mumbai,
Stockholm
Amsterdam, Paris,
New York, San Francisco,
Toronto
London,
Washington DC
Milan,
Sydney
Moscow,
New York, Sao Paulo
Chicago, San Francisco
Beijing, Hong Kong,
Sao Paulo,
Seoul
Berlin,
Paris
3 |
 Beijing,
Paris Rental growth
slowing
Rental growth
falling
Rental
growth
accelerating
Rents
bottoming
out
Americas
EMEA
Asia Pacific
Leasing Market Fundamentals
Q2 2009
London, Moscow
Amsterdam, Dallas,
Milan, Washington DC
Atlanta, Chicago, Los Angeles,
New York, San Francisco
Mumbai
Hong Kong,
Tokyo
Seoul,
Toronto
Paris,
Shanghai
Q2 2010
Hong Kong
Shanghai
Washington DC
Dallas, Rome,
Seoul
Rental growth
slowing
Rental growth
falling
Rental
growth
accelerating
Rents
bottoming
out
Detroit
Atlanta, Chicago,
Los Angeles, New York
As of Q2 2010
The Jones Lang LaSalle Property Clocks
SM
Berlin, Detroit,
Sydney
Beijing,
Stockholm,
Singapore
Stockholm,
Tokyo
Brussels, Milan
Amsterdam, San Francisco
Berlin, Moscow,
Mumbai,
Sydney
London,
Singapore
4 |
 Demonstrating Competitive Strength
5
•
Protect
and
grow
market
share
–
Add
and
upgrade
market
talent;
grow
new
service
lines
–
retail,
industrial,
healthcare
–
Stabilize
loss-making
businesses
–
Q2
profitability
in
Russia
–
Client
consolidations
&
portfolios
repositioning
–
Q2
Leasing
revenue
is
up
30%
in
local
currency
•
Improve
operating
income
margins
and
maintain
cost
discipline
–
Adjusted
operating
income
margin
of
9.0%
in
Q2;
6.4%
YTD
–
Compensation
as
a
%
of
revenue
is
64.4%
in
Q2;
65.5%
YTD
–
Increase
professional
productivity
•
Continue
to
build
annuity
revenue
–
Expand
corporate
outsourcing
leadership
–
24
new
wins,
expansions
and
renewals
–
Property
&
Facility
Management
reaches
29%
of
YTD
IOS
revenue
•
LaSalle
Investment
Management:
leverage
global
scale
and
market
reputation
–
$700
million
of
takeovers
in
Q2;
more
than
$4.3
billion
net
new
capital
commitments
YTD
–
Positioned
for
opportunities
in
new
legislative
environment
•
Maintain
strong
financial
position
–
Net
debt
reduced
$134
million
since
June
30,
2009
–
Leverage
ratio
at
1.90x
Achieving Results on 2010 Priorities |
 Americas
Citi 28M sf
International Paper 18M sf
Evening Star Building, Washington D.C. $180M
Mission City Corporate Center, San Diego $71M
Intercontinental Buckhead, Atlanta $105M
ICF International, Vienna, VA 260k sf
Walmart.com, San Bruno, CA 266k sf
Novelis, Atlanta, GA 100k sf
Asia Pacific
RBS 2.5M sf
UTSTARCOM, Hangzhou, China $140M
Hilton Niseko Village, Hokkaido, Japan ¥6B
Sofitel Wentworth, Sydney AUD 130M
Eugene Investment & Securities Building, Seoul $149M
ANZ Bank, Singapore 200k sf
Permata Bank, Indonesia 194k sf
EMEA
Shell
IZD Tower, Vienna €212M
Condor House, London £104M
Espace Saint-Quentin, Paris €175M
Canary Wharf Group, London 186k sf
Laboratoire Roche, Paris 168k sf
Q2 Selected Business Wins and Expansions
6 |
 Second Quarter Financial Information |
 8
Q2 2010 Revenue Performance
Note: Equity losses of $19.2M and $2.8M in 2009 and 2010, respectively, are included
in segment results, however, are excluded from Consolidated totals.
Americas
EMEA
Asia Pacific
LIM
$248.6
$295.5
2009
2010
18%
$142.9
$170.7
2009
2010
26%
$119.3
$154.7
2009
2010
21%
$56.6
$46.1
2009
2010
22%
Consolidated
$576.1
$680.3
2009
2010
18%
($ in millions; % change in local currency ) |
 Asia
Pacific 9
Q2 2010 Investor and Occupier Services Revenue
Note: % reflects change in local currency terms over Q2 2009.
($ in millions; % change in local currency )
Americas
EMEA
Leasing
Capital Markets &
Hotels
Property & Facility
Management
Project &
Development Services
Advisory, Consulting
& Other
Total IOS
Operating Revenue
$151.4
$14.3
$62.0
$38.5
$29.3
$295.5
25%
138%
21%
6%
0%
18%
$46.8
$32.0
$35.2
$27.6
$29.1
$170.7
36%
50%
27%
13%
5%
26%
$36.4
$17.1
$70.9
$14.7
$15.6
$154.7
46%
56%
5%
43%
1%
20%
$234.6
$63.4
$168.1
$80.8
$74.0
$620.9
30%
65%
15%
7%
2%
21%
Total IOS
Revenue |
 10
YTD 2010 Revenue Performance
Note: Equity losses of $51.3M and $8.9M in 2009 and 2010, respectively, are included
in segment results, however, are excluded from Consolidated totals.
($ in millions; % change in local currency
)
Americas
EMEA
Asia Pacific
LIM
$448.2
$523.9
2009
2010
16%
$263.6
$322.2
2009
2010
22%
$224.1
$290.3
2009
2010
18%
$115.7
$83.2
2009
2010
34%
Consolidated
$1,070.4
$1,261.0
2009
2010
15% |
 Asia
Pacific 11
YTD 2010 Investor and Occupier Services Revenue
Note: % reflects change in local currency terms over YTD Q2 2009.
($ in millions; % change in local currency )
Americas
EMEA
Leasing
Capital Markets &
Hotels
Property & Facility
Management
Project &
Development Services
Advisory, Consulting
& Other
Total IOS
Operating Revenue
$257.6
$23.8
$120.2
$70.1
$52.0
$523.7
22%
73%
26%
12%
2%
16%
$85.5
$58.2
$69.7
$53.6
$55.2
$322.2
30%
52%
16%
13%
3%
22%
$61.9
$33.7
$138.8
$25.4
$30.5
$290.3
40%
96%
2%
14%
8%
17%
$405.0
$115.7
$328.7
$149.1
$137.7
$1,136.2
26%
67%
13%
0%
4%
18%
Total IOS
Revenue |
 $3.4
$10.4
$56.0
$114.4
Q2 2010
YTD 2010
Advisory Fees
Transaction & Incentive Fees
12
2010 LaSalle Investment Management
Note: % reflects change in local currency terms over comparable period in the prior
year. ($ in millions; % change in local currency )
Separate Account
Management
(Firm’s co-investment =
$22.7M)
•
$16.8 billion of assets
under management
(1% decline from 2009)
(1)
AUM data reported on a one quarter lag
Fund Management
(Firm’s co-investment =
$140.6M)
•
$13.9 billion of assets
under management
(14% decline from 2009)
Public Securities
(Firm’s co-investment =
$0.1M)
•
$7.6 billion of assets
under management
(145% growth over 2009)
Q2 2010 Statistics
(1)
Q2 2010
YTD 2010
New Separate Accounts Mandates
$700
$3,700
Net New Equity for Funds and Public Securities
200
600
Net New Capital Commitments
$900
$4,300
Total AUM
$38.3 billion
Operating Revenue
7%
7% |
 Cash
$55
$44
Short Term Borrowings
64
40
Credit Facilities
268
398
Net Bank Debt
$277
$394
Deferred Business Obligations
371
388
Total Net Debt
$648
$782
Solid Balance Sheet Position
Continued focus on debt repayment with selective investments
(1)
YTD Capital Expenditures for 2010 and 2009 net of tenant improvement allowances
received were $12 million and $16 million, respectively. 13
Q2 2010
Q2 2009
•
Total net debt reduced by $134 million
since June 30, 2009
•
Strong cash from earnings
•
Cash interest expense of $5.2 million,
down 28% from Q2 2009 expense of
$7.2 million
•
Leverage ratio of 1.90x, well below
covenant maximum (3.75x)
•
Investment grade rated
Standard & Poor’s:
BBB-
(Outlook: Stable)
Moody’s Investor Services:
Baa2
(Outlook: Stable)
Q2 2010 Highlights
Cash from Earnings
$120
$71
Working Capital
(200)
(157)
Cash used in Operations
($80)
($86)
Primary Uses
Capital Expenses
(1)
(14)
(21)
Acquisitions & Deferred Payment Obligations
(33)
(10)
Co-Investment
(11)
(19)
Dividends
(4)
(4)
Net Cash Outflows
($62)
($54)
Net Share Issuance & Other Financing
(5)
209
Net Debt (Borrowings) / Repayments
($147)
$69
Q2 YTD 2010
Q2 YTD 2009 |
 Appendix |
 15
Q2 2010 Adjusted EBITDA* Performance
Americas
EMEA
Asia Pacific
LIM
$31.2
$41.3
2009
2010
$5.1
$10.2
2009
2010
$5.7
$14.2
2009
2010
$12.6
$7.8
2009
2010
Consolidated
$49.3
$78.0
2009
2010
*
Refer
to
slide
18
for
Reconciliation
of
GAAP
Net
Income
(Loss)
to
EBITDA
and
adjusted
EBITDA
for
the
three
months
ended
June
30,
2010,
and
2009,
for
details
relative
to
these
adjusted
EBITDA
calculations.
Segment
adjusted
EBITDA
is
calculated
by
adding
the
segment’s
Depreciation
and
amortization
and
non-cash
co-investment
charges
to
its
reported
Operating
income
(loss),
which
excludes
Restructuring
charges.
Consolidated
adjusted
EBITDA
is
the
sum
of
the
adjusted
EBITDA
of
the
four
segments
less
net
income
attributable
to
non-controlling
interests
and
dividends
on
unvested
common
stock.
($ in millions) |
 16
YTD 2010 Adjusted EBITDA* Performance
Americas
EMEA
Asia Pacific
LIM
$42.6
$59.3
2009
2010
($10.8)
$5.3
2009
2010
$5.0
$22.8
2009
2010
$28.1
$23.8
2009
2010
Consolidated
$60.2
$115.0
2009
2010
*
Refer
to
slide
18
for
Reconciliation
of
GAAP
Net
Income
(Loss)
to
EBITDA
and
adjusted
EBITDA
for
the
six
months
ended
June
30,
2010,
and
2009,
for
details
relative
to
these
adjusted
EBITDA
calculations.
Segment
adjusted
EBITDA
is
calculated
by
adding
the
segment’s
Depreciation
and
amortization
and
non-cash
co-investment
charges
to
its
reported
Operating
income
(loss),
which
excludes
Restructuring
charges.
Consolidated
adjusted
EBITDA
is
the
sum
of
the
adjusted
EBITDA
of
the
four
segments
less
net
income
attributable
to
non-controlling
interests
and
dividends
on
unvested
common
stock.
($ in millions) |
 17
($ in millions)
Reconciliation of GAAP Net Income (Loss) to
Adjusted Net Income
Note:
Basic
shares
outstanding
are
used
in
the
calculations
of
GAAP
EPS
for
the
three
and
six
months
ending
June
30,
2009,
and
in
the
calculation
of
adjusted
EPS
for
the
six
months
ended
June
30,
2009,
as
the
use
of
dilutive
shares
outstanding
would
cause
those
EPS
calculations
to
be
anti-dilutive.
2010
2009
2010
2009
GAAP net income (loss)
31.8
$
(14.4)
$
32.0
$
(75.9)
$
Shares (in 000's)
44,250
35,836
44,085
35,231
GAAP earnings (loss) per share
0.72
$
(0.40)
$
0.73
$
(2.15)
$
GAAP net income (loss)
31.8
$
(14.4)
$
32.0
$
(75.9)
$
Restructuring, net of tax
3.1
13.1
3.9
27.6
Non-cash co-investment charges, net of tax
1.7
12.7
6.7
37.2
Adjusted net income (loss)
36.6
$
11.4
$
42.6
$
(11.1)
$
Shares (in 000's)
44,250
37,652
44,085
35,231
Adjusted earnings (loss) per share
0.83
$
0.30
$
0.97
$
(0.31)
$
Three Months Ended
June 30,
Six Months Ended
June 30, |
 18
($ in millions)
Reconciliation of GAAP Net Income (Loss) to
EBITDA and Adjusted EBITDA
2010
2009
2010
2009
Net income (loss)
31.8
$
(14.4)
$
32.0
$
(75.9)
$
Interest expense, net of interest income
12.9
14.5
24.3
27.3
Provision (benefit) for income taxes
9.6
(2.5)
9.7
(13.3)
Depreciation and amortization
17.5
21.4
35.2
45.9
EBITDA
71.8
$
19.0
$
101.2
$
(16.0)
$
Non-cash co-investment charges
2.2
14.9
8.7
43.8
Restructuring
4.0
15.4
5.1
32.4
Adjusted EBITDA
78.0
$
49.3
$
115.0
$
60.2
$
Three Months Ended
June 30,
June 30,
Six Months Ended |