Supplemental Information Fourth Quarter Earnings Call 2010 Exhibit 99.2 |
Market & Financial Overview |
3 Americas EMEA Asia Pacific Capital Values As of Q4 2010 The Jones Lang LaSalle Property Clocks SM Beijing, Hong Kong Moscow Capital Value growth slowing Capital Value growth accelerating Capital Value bottoming out Capital Value falling New York, Paris, San Francisco Sao Paulo, Seoul, Sydney London Shanghai Detroit Singapore Brussels, Chicago, Milan Mumbai, Tokyo Amsterdam, Toronto Dallas Q4 2009 Washington DC Berlin, Stockholm Capital Value growth slowing Capital Value growth accelerating Capital Value bottoming out Capital Value falling Hong Kong, London, Sao Paulo Washington DC Shanghai Dallas, Mumbai, Seoul Sydney, Tokyo Singapore Brussels Moscow Berlin, Paris, Stockholm Amsterdam, Milan New York San Francisco Chicago, Toronto Detroit Beijing Q4 2010 |
4 Leasing Market Fundamentals Q4 2010 As of Q4 2010 The Jones Lang LaSalle Property Clocks SM Shanghai Rental Value growth slowing Rental Value growth accelerating Rental Values bottoming out Rental Values falling Hong Kong, London, Sao Paulo, Sydney Stockholm, Singapore Chicago Mumbai Amsterdam, Brussels, Seoul Toronto Tokyo Q4 2009 Dallas, Milan, San Francisco Beijing, Moscow Berlin, Paris, Washington DC Detroit New York Americas EMEA Asia Pacific Hong Kong Rental Value growth slowing Rental Value growth accelerating Rental Values bottoming out Rental Values falling Paris, Tokyo Shanghai, Sydney Chicago, Seoul Amsterdam, New York Berlin, Mumbai, San Francisco London Brussels Toronto Moscow, Stockholm Detroit Dallas Sao Paulo Beijing Milan Singapore, Washington DC |
2010 Accomplishments and Trends Consolidated 5 – Full-year revenue of more than $2.9 billion – Adjusted operating income margin of 9.1%, adjusted EBITDA margin of 11.5% – Leasing revenue increased 28% – Strong Capital Markets & Hotels revenue growth – 2010 high-impact hires provide momentum into 2011 – Larger markets 9-12 months into cyclical recovery – Improved productivity in transactional businesses – Retail, Corporate Solutions, Tetris provide improved revenue opportunities – Both US and Regional multi- national corporate wins – More than 50M sf added to Property Management annuity base – Second-best capital raising year in LaSalle history: $5B – Nearly $3.2B capital invested – Focused on performance Americas EMEA Asia Pacific LaSalle Balance Sheet – $250M of net debt repayment in the year – Maintained the firm’s investment-grade ratings |
Q4 Selected Business Wins and Expansions 6 – AT&T Mobility – 2,300 sites – Beaumont Hospitals, Detroit – 8.5M sf – SAIC – 10M sf – 353 N. Clark, Chicago – $400M – 300 S. Riverside, Chicago – $120M – Navistar, Chicago – $33M / 1.2M sf – The Northern Trust Company, Chicago – 207K sf – Healthfirst, New York – 172M sf – Interpublic Group – 3M sf – Vasakronen, Stockholm – €483M – Norges, Regent Street, London – £452M – Espace Saint-Quentin, Paris – €172M – Hotel de Crillon, Paris – Le Richmonde, Geneva – $161M – The Shard, London – 595K sf – Soyak Tower, Instanbul – 538K sf – Publicis, Dusseldorf – 129K sf – Standard Chartered Bank – 16M sf – Alcatel Lucent – 6M sf – Colonial First State Property, Australia – $229M – Procter & Gamble, Shanghai – 7.5M sf – Dusit Thani Phuket, Thailand – $85M – Orchard Funds Management, Australia – 4.3M sf – Supertech Emerald, India – 1M sf – Dow Chemical, Shanghai – 290K sf Americas EMEA Asia Pacific |
Financial Information |
$643.7 $728.8 2009 2010 8 FY 2010 Revenue Performance Note: Equity losses of $58.9M and $11.4M in 2009 and 2010, respectively, are included in segment results, however, are excluded from Consolidated totals. ($ in millions; % change in local currency ) Americas EMEA Asia Pacific $1,031.6 $1,261.5 2009 2010 $538.9 $678.5 2009 2010 $245.4 $207.6 2009 2010 Consolidated $2,480.7 $2,925.6 2009 2010 LIM 17% 17% 16% 17% 22% |
Asia Pacific 9 FY 2010 Real Estate Services Revenue ($ in millions; % change in local currency over FY 2009) Americas EMEA Leasing Capital Markets & Hotels Property & Facility Management Project & Development Services Advisory, Consulting & Other Total RES Operating Revenue $637.9 $84.1 $269.4 $158.9 $110.9 $1,261.2 28% 120% 19% 1% 1% 22% $202.6 $141.2 $142.9 $115.0 $127.2 $728.9 22% 37% 8% 11% 7% 17% $159.4 $80.4 $303.7 $63.5 $71.4 $678.4 34% 25% 6% 35% 11% 17% $999.9 $305.7 $716.0 $337.4 $309.5 $2,668.5 27% 51% 11% 9% 5% 18% Total RES Revenue Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). |
10 Q4 2010 Revenue Performance Note: Equity losses of $2.6M and $0.4M in 2009 and 2010, respectively, are included in segment results, however, are excluded from Consolidated totals. Americas EMEA Asia Pacific $344.7 $428.5 2009 2010 $225.9 $237.4 2009 2010 $178.3 $223.2 2009 2010 $66.8 $63.5 2009 2010 Consolidated $815.1 $956.3 2009 2010 ($ in millions; % change in local currency ) LIM 24% 11% 18% 4% 18% |
Asia Pacific 11 Q4 2010 Real Estate Services Revenue Americas EMEA Leasing Capital Markets & Hotels Property & Facility Management Project & Development Services Advisory, Consulting & Other Total RES Operating Revenue $228.3 $35.1 $86.1 $48.1 $30.9 $428.5 30% 156% 8% 11% 2% 24% $69.3 $52.0 $40.7 $32.2 $43.2 $237.4 4% 41% 3% 0% 13% 10% $62.4 $28.5 $89.4 $18.8 $24.0 $223.1 36% 7% 13% 41% 20% 18% $360.0 $115.6 $216.2 $99.1 $98.1 $889.0 25% 50% 7% 11% 18% Total RES Revenue 7% ($ in millions; % change in local currency over Q4 2009) Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). |
• $5 billion of net new capital raised, 2 best year in LaSalle history • More than $3 billion invested worldwide in 2010 • Healthy margins generated from Advisory Fees A premier global investment manager LaSalle Investment Management 2010 Highlights Product Assets Under Management ($ in billions) Average Performance Private Equity U.K. $11.3 Above benchmark Continental Europe $4.2 Return: +1x equity North America $9.8 Above benchmark Asia Pacific $7.3 Return: +1x equity Public Securities $8.7 Above benchmark Total Q4 2010 AUM $41.3 B AUM by Fund type Note: AUM data reported on a one-quarter lag ($ in billions) 12 nd |
Solid Cash Flows and Balance Sheet Position • Strong cash from earnings growth • Net debt repayment of $250 million • Paid first deferred Staubach obligation of $76 million (2) • Renewed and extended credit facility - Capacity increased to $1.1 billion, previously $840 million - Maturity extended to September 2015 • Investment grade ratings affirmed: Standard & Poor’s: BBB- (Outlook: Stable) Moody’s Investor Services: Baa2 (Outlook: Stable) Cash Flows FY 2010 FY 2009 Cash from Earnings $316 $244 Working Capital 68 7 Cash from Operations $384 $251 Primary Uses Capital Expenses (1) (48) (44) Acquisitions & Deferred Payment Obligations (130) (27) Co-Investment (19) (39) Dividends (9) (8) Net Cash Outflows ($206) ($118) Net Share Activity & Other Financing (23) 201 Net Bank Debt (Borrowings) / Repayments $155 $334 Balance Sheet FY 2010 FY 2009 Cash $252 $69 Short Term Borrowings 28 23 Credit Facility 198 175 Net Bank Debt ($26) $129 Deferred Business Obligations 299 394 Total Net Debt $273 $523 ($ in millions) (1) YTD Capital Expenditures for 2010 and 2009 net of tenant improvement allowances received were $46 million and $36 million, respectively (2) $78 million due less $2 million deferred in accordance with the merger agreement 2010 Highlights 13 |
Appendix |
15 FY 2010 Adjusted EBITDA * Performance Americas EMEA Asia Pacific $133.8 $183.9 2009 2010 $14.1 $38.3 2009 2010 $44.3 $62.4 2009 2010 $53.0 $47.4 2009 2010 Consolidated $238.6 $336.7 2009 2010 ($ in millions) LIM * Refer to slide 18 for Reconciliation of GAAP Net Income (Loss) to EBITDA and adjusted EBITDA for the twelve months ended December 31, 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. |
16 Q4 2010 Adjusted EBITDA * Performance Americas EMEA Asia Pacific LIM $52.2 $78.7 2009 2010 $23.5 $25.6 2009 2010 $28.9 $28.7 2009 2010 $7.9 $10.4 2009 2010 Consolidated $112.1 $143.1 2009 2010 ($ in millions) * Refer to slide 18 for Reconciliation of GAAP Net Income (Loss) to EBITDA and adjusted EBITDA for the three months ended December 31, 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. |
17 ($ in millions) Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income Note: Basic shares outstanding are used in the calculation of GAAP EPS for the twelve months ending December 31, 2009, as the use of dilutive shares outstanding would cause that EPS calculation to be anti-dilutive. 2010 2009 2010 2009 GAAP net income (loss) 84.4 $ 52.0 $ 153.5 $ (4.1) $ Shares (in 000's) 44,235 43,671 44,084 38,543 GAAP earnings (loss) per share 1.91 $ 1.19 $ 3.48 $ (0.11) $ GAAP net income (loss) 84.4 $ 52.0 $ 153.5 $ (4.1) $ Restructuring, net of tax 0.7 8.1 4.9 35.6 Non-cash co-investment charges, net of tax 0.7 2.8 7.9 38.5 Adjusted net income 85.8 $ 62.9 $ 166.3 $ 70.0 $ Shares (in 000's) 44,235 43,671 44,084 40,106 Adjusted earnings per share 1.94 $ 1.44 $ 3.77 $ 1.75 $ Three Months Ended December 31, Twelve Months Ended December 31, |
18 ($ in millions) Reconciliation of GAAP Net Income (Loss) to EBITDA and Adjusted EBITDA 2010 2009 2010 2009 Net income (loss) 84.4 $ 52.0 $ 153.5 $ (4.1) $ Interest expense, net of interest income 10.1 11.5 45.8 55.0 Provision (benefit) for income taxes 28.2 15.5 49.0 5.7 Depreciation and amortization 18.6 18.7 71.6 83.3 EBITDA 141.3 $ 97.7 $ 319.9 $ 139.9 $ Non-cash co-investment charges 0.9 3.6 10.4 51.3 Restructuring 0.9 10.8 6.4 47.4 Adjusted EBITDA 143.1 $ 112.1 $ 336.7 $ 238.6 $ Three Months Ended December 31, December 31, Twelve Months Ended |