Supplemental Information Third Quarter Earnings Call 2011 Exhibit 99.2 |
Market & Financial Overview |
Capital Values Capital Value growth slowing Capital Value growth accelerating Capital Values bottoming out Capital Values falling Q3 2011 Hong Kong Washington DC London Moscow, Paris Chicago, Stockholm Atlanta, Dallas Frankfurt, Milan Brussels Seoul Madrid, Tokyo Detroit Berlin, Toronto San Francisco, Beijing New York, Sao Paulo Shanghai Singapore Sydney Mumbai Americas EMEA Asia Pacific As of Q3 2011 The Jones Lang LaSalle Property Clocks SM 3 |
Leasing Market Fundamentals Q3 2011 As of Q3 2011 The Jones Lang LaSalle Property Clocks SM Rental Value growth slowing Rental Value growth accelerating Rental Values bottoming out Rental Values falling Detroit, Dubai Seoul San Francisco New York Washington DC, Toronto, Milan Dallas, Mumbai Atlanta Frankfurt Johannesburg Chicago Rome Tokyo Los Angeles Brussels Madrid Berlin, Sydney Stockholm Sao Paulo, Paris Beijing London Moscow Mexico City Hong Kong Singapore Shanghai Americas EMEA Asia Pacific 4 |
Q3 Selected Business Wins and Expansions 5 Americas EMEA Asia Pacific – HSBC – 10M sf – Principal Financial – 7M sf – Red Roof Inns Portfolio, U.S. - $151M – One Shell Square, New Orleans - $102M – 1700 Market, Philadelphia - $144M/$123M – MetLife, New York – 276K sf – Morris, Manning & Martin, Atlanta – 118K sf – Nexen, Dallas – 191K sf – HSBC – 4M sf – Rolls Building, London - £305M – Friederich Carre, Berlin – €53M – Magnolia Shopping Centre, Poland – €220M – AXA, Brussels – 538K sf – MRSK, Moscow – 82K sf – SNS REEAL, Amsterdam – 70K sf – HSBC – 6M sf – Pertamina, Indonesia – 2M sf – Abacus, Australia – $628M – SOHO China, Shanghai – $296M – Crowne Plaza Airport, Singapore – $231M – AIG Edison Life, Japan – 2M sf – Agile Property Holdings, Guangzhou – 130K sf – Australia Prop. Growth Fund – 3M sf |
Financial Information |
7 Q3 2011 Revenue Performance Note: Equity earnings (losses) of $0.5M and ($2.0M) in 2011 and 2010, respectively, are included in segment results, however, are excluded from Consolidated totals. Americas EMEA Asia Pacific $379.3 $309.1 2011 2010 Consolidated $903.2 $708.4 2011 2010 ($ in millions, % change in USD) LIM 23% 46% 22% 21% 28% $247.3 $169.3 2011 2010 $200.6 $165.0 2011 2010 $76.5 $63.0 2011 2010 |
Asia Pacific 8 Q3 2011 Real Estate Services Revenue Americas EMEA Leasing Capital Markets & Hotels Property & Facility Management Project & Development Services Advisory, Consulting & Other Total RES Operating Revenue $186.9 $36.4 $79.4 $46.1 $30.5 $379.3 22% 44% 27% 13% 9% 23% $57.5 $59.3 $40.2 $46.3 $44.0 $247.3 20% 91% 23% 59% 54% 46% $44.5 $21.3 $93.1 $21.7 $19.9 $200.5 26% 16% 23% 13% 19% 22% $288.9 $117.0 $212.7 $114.1 $94.4 $827.1 23% 57% 25% 28% 29% Total RES Revenue 29% Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). ($ in millions; % change in USD ) |
9 YTD 2011 Revenue Performance Note: Equity earnings (losses) of $2.7M and ($10.9M) in 2011 and 2010, respectively, are included in segment results, however, are excluded from Consolidated totals. Americas EMEA Asia Pacific LIM $833.1 $1,015.8 2011 2010 Consolidated $1,969.4 $2,436.4 2011 2010 24% ($ in millions; % change in USD ) $633.3 $491.4 2011 2010 $580.6 $455.3 2011 2010 $178.7 $209.5 2011 2010 22% 29% 28% 17% |
Asia Pacific 10 YTD 2011 Real Estate Services Revenue ($ in millions; % change in USD ) Americas EMEA Leasing Capital Markets & Hotels Property & Facility Management Project & Development Services Advisory, Consulting & Other Total RES Operating Revenue $501.7 $87.9 $220.4 $124.1 $79.1 $1,013.2 22% 79% 21% 12% (1%) 22% $155.1 $126.0 $110.3 $130.9 $111.3 $633.6 16% 41% 8% 58% 33% 29% $123.3 $72.8 $265.8 $60.0 $58.5 $580.4 27% 39% 24% 34% 25% 27% $780.1 $286.7 $596.5 $315.0 $248.9 $2,227.2 22% 50% 19% 32% 18% 25% Total RES Revenue Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). |
YTD Q3 2011 Highlights LaSalle Investment Management Product Assets Under Management ($ in billions) Average Performance Private Equity U.K. $12.0 Above benchmark Continental Europe $4.5 Return: >1x equity North America $10.1 Above benchmark Asia Pacific $8.2 Return: >1x equity Public Securities $13.1 Above benchmark Total Q3 2011 AUM $47.9 B AUM by Fund type Note: AUM data reported on a one-quarter lag ($ in billions) • Stable, high margin advisory fees augmented by incentive fees in Q3 2011 • Nearly $5 billion of net new capital commitments raised YTD 2011 • Trinity Funds Management acquisition added $700 million of assets under management and increased credibility in Australia 11 |
Solid Cash Flows and Balance Sheet Position • Steady quarterly improvement in Cash from Operations - $16 million of restructuring charges included in Q3 2011 Cash from Earnings • 2011 acquisition activity supplements organic growth: - King Sturge closed in Q2 2011 - Second deferred Staubach obligation paid in Q3 2011 - Trinity Funds Management acquired in Q3 2011; $23 million of related co-investment funded in Q3 2011 • Investment grade ratings Standard & Poor’s: BBB- (Outlook: Stable) Moody’s Investor Services: Baa2 (Outlook: Stable) ($ in millions) YTD Q3 2011 Highlights 2011 Q1 Q2 Q3 Cash Flows Cash from Earnings $42 $81 $68 Working Capital (239) (20) 27 Cash from / (used in) Operations ($197) $61 $95 Primary Uses Capital Expenses (17) (19) (20) Acquisitions & Deferred Payment Obligations (25) (210) (162) Co-Investment (2) 2 (47) Dividends - (7) - Net Cash Outflows ($44) ($234) ($228) Net Share Activity & Other Financing (4) (2) (8) Net Bank Debt (Borrowings) / Repayments ($245) ($175) ($141) Balance Sheet Cash $101 $96 $86 Short Term Borrowings 42 45 54 Credit Facility 278 444 567 Net Bank Debt $219 $393 $535 Deferred Business Obligations 293 439 292 Total Net Debt $512 $832 $827 Net Interest Expense $8.0 $9.6 $9.7 12 |
Appendix |
Capital Values Capital Value growth slowing Capital Value growth accelerating Capital Values bottoming out Capital Values falling Q3 2010 London Washington DC Paris, Seoul Beijing Capital Value growth slowing Capital Value growth accelerating Capital Values bottoming out Capital Values falling Hong Kong Detroit Dallas Brussels, Madrid Shanghai Milan, Mumbai, Sydney New York, Sao Paulo Chicago, San Francisco Toronto, Singapore Berlin, Stockholm, Tokyo Q3 2011 Hong Kong Washington DC London Moscow, Paris Chicago, Stockholm Atlanta, Dallas Frankfurt, Milan Brussels Seoul Madrid , Tokyo Moscow Atlanta, Frankfurt Detroit Berlin, Toronto San Francisco, Beijing New York, Sao Paulo Shanghai Singapore Sydney Mumbai Americas EMEA Asia Pacific As of Q3 2011 The Jones Lang LaSalle Property Clocks SM 14 |
Leasing Market Fundamentals Q3 2011 As of Q3 2011 The Jones Lang LaSalle Property Clocks SM Rental Value growth slowing Rental Value growth accelerating Rental Values bottoming out Rental Values falling Paris, Stockholm Mumbai, Sydney, Tokyo Hong Kong London, Shanghai Milan, Johannesburg Chicago Madrid, Seoul Rental Value growth slowing Rental Values falling Rental Value growth accelerating Rental Values bottoming out Detroit Los Angeles San Francisco Berlin Moscow Q3 2010 Mexico City Singapore New York, Brussels, Frankfurt Atlanta, Dallas, Toronto, Rome Dubai Washington DC Sao Paulo Beijing Detroit, Dubai Seoul San Francisco New York Washington DC, Toronto, Milan Dallas, Mumbai Atlanta Frankfurt Johannesburg Chicago Rome Tokyo Los Angeles Brussels Madrid Berlin, Sydney Stockholm Sao Paulo, Paris Beijing London Moscow Mexico City Hong Kong Singapore Shanghai Americas EMEA Asia Pacific 15 |
16 Q3 2011 Adjusted EBITDA* Performance Americas EMEA Asia Pacific LIM $46.5 $46.0 2011 2010 Consolidated $93.7 $78.7 2011 2010 * Refer to slide 18 for Reconciliation of GAAP Net Income to adjusted EBITDA for the three months ended September 30, 2011, and 2010, for details relative to these adjusted EBITDA calculations. Segment EBITDA is calculated by adding the segment’s Depreciation and amortization to its reported Operating income, which excludes Restructuring and acquisition charges. Consolidated adjusted EBITDA is the sum of the EBITDA of the four segments less net income attributable to non-controlling interests and dividends on unvested common stock. ($ in millions) $10.4 $7.4 2011 2010 $17.0 $11.0 2011 2010 $19.8 $13.6 2011 2010 |
17 YTD 2011 Adjusted EBITDA* Performance Americas EMEA Asia Pacific LIM $107.1 $105.2 2011 2010 Consolidated $216.0 $193.7 2011 2010 * Refer to slide 18 for Reconciliation of GAAP Net Income to adjusted EBITDA for the nine months ended September 30, 2011, and 2010, for details relative to these adjusted EBITDA calculations. Segment EBITDA is calculated by adding the segment’s Depreciation and amortization to its reported Operating income, which excludes Restructuring and acquisition charges. Consolidated adjusted EBITDA is the sum of the EBITDA of the four segments less net income attributable to non-controlling interest and, dividends on unvested common stock. ($ in millions) $12.7 $14.3 2011 2010 $50.2 $33.7 2011 2010 $45.8 $33.0 2011 2010 |
18 ($ in millions) Reconciliation of GAAP Net Income to Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, 2011 2010 2011 2010 Net income attributable to common shareholders $33.9 $37.1 $79.2 $69.1 Add: Interest expense, net of interest income 9.7 11.5 27.2 35.7 Provision for income taxes 11.3 26.9 20.8 Depreciation and amortization 22.8 17.7 60.5 53.0 EBITDA $ 77.7 $ 77.4 $ 193.8 $ 178.6 Restructuring and acquisition charges 16.0 0.4 22.2 5.5 Non-cash co-investment charges - 0.9 - 9.6 Adjusted EBITDA $ 93.7 $ 78.7 $ 216.0 $ 193.7 11.1 |
19 ($ in millions) Reconciliation of GAAP Net Income to Adjusted Net Income Three Months Ended September 30, Nine Months Ended September 30, 2011 2010 2011 2010 GAAP Net income attributable to common shareholders $ 33.9 $ 37.1 $ 79.2 $ 69.1 Shares (in 000s) 44,355 44,089 44,377 44,064 GAAP earnings per share $ 0.76 $ 0.84 $ 1.79 $ 1.57 GAAP Net income attributable to common shareholders $ 33.9 $ 37.1 $ 79.2 $ 69.1 Restructuring and acquisition charges, net 12.0 0.3 16.6 4.2 Intangible amortization, net 3.7 - 5.0 - Non-cash co-investment charges, net - 0.7 - 7.4 Adjusted net income $ 49.6 $ 38.1 $ 100.8 $ 80.7 Shares (in 000s) 44,355 44,089 44,377 44,064 Adjusted earnings per share $ 1.12 $ 0.86 $ 2.27 $ 1.83 |