Supplemental Information Fourth Quarter Earnings Call 2011 Exhibit 99.2 |
Market & Financial Overview |
3 Americas EMEA Asia Pacific Capital Values As of Q4 2011 The Jones Lang LaSalle Property Clocks SM Q4 2011 Q4 2010 |
4 Leasing Market Fundamentals Q4 2010 As of Q4 2011 The Jones Lang LaSalle Property Clocks SM Americas EMEA Asia Pacific Q4 2011 |
Q4 Selected Business Wins and Expansions 5 Americas EMEA Asia Pacific – AMC Theaters – 4M sf – 1800 9 th Avenue, Seattle – $77M – 70 Pine Street, New York – $205M – 55 West Monroe, Chicago – $136M – Paramount Hotel, New York – $255M – DIRECTV, Los Angeles – 630K sf – AMA, Chicago – 275K sf – Guggenheim Partners, New York – 185K sf – UBS – 27 countries – UK Logistics – £312M – PEP Shopping Centre, Munich – €400M+ – Industrial portfolio, Czech Republic – €135M – W Hotel, London – $295M – Tesco International, Slovakia – 460K sf – St. David’s Mall, Cardiff – 1.4M sf – Fonterra Group, China – 4.4M sf – Commerce Point, Singapore – $161M – RREEF Investment, Dalian – 960K sf – Cairns Central Shopping Centre, Australia – AUD 261M – MAPS, Seoul – 700K sf – Baker & McKenzie, Thailand – 65K sf – Merck, Sharp & Dohme, Beijing – 545K sf – Mercedes-Benz, Bangalore – 200K sf Global – GlaxoSmithKline – 80M sf |
Direct Commercial Real Estate Investment, 2005 - 2012 * EMEA: Presented In US$ terms. Volumes unchanged in Euro terms. Source: Jones Lang LaSalle, January 2012 6 |
+ 10-20% Capital Values Rental Values + 5-10% + 0-5% - 0-5% - 5-10% Moscow, Shanghai, Mumbai Sydney, Tokyo Sao Paulo, New York* London*, Frankfurt, Paris, Stockholm Boston, Chicago, Los Angeles, Washington DC + 20% Toronto, Tokyo, Moscow San Francisco, New York* Sydney, Mumbai Boston, Chicago, Los Angeles Washington DC, Sao Paulo, Stockholm Shanghai, London*, Frankfurt Provisional. *New York – Midtown, London – West End. Nominal rates in local currency. Source: Jones Lang LaSalle, January 2012 - 10-20% Dubai Brussels, Madrid, Mexico City Brussels, Madrid, Paris Mexico City Dubai Toronto, San Francisco Hong Kong, Singapore Hong Kong, Singapore Beijing Beijing 7 2012 Market Outlook Projected Change in Prime Office Values |
Financial Information |
FY 2011 Consolidated Revenue Mix 2011 Revenue = $3.6 billion Service Line Geography 9 |
10 FY 2011 Revenue Performance Note: Equity earnings (losses) of $6.4M and ($11.4M) in 2011 and 2010, respectively, are included in segment results, however, are excluded from Consolidated totals. Americas EMEA Asia Pacific LIM Consolidated $3,584.5 $2,925.6 2011 2010 ($ in millions; % change in USD ) 21% $1,525.3 $1,261.5 2011 2010 $816.5 $678.5 2011 2010 $275.4 $245.4 2011 2010 $973.7 $728.8 2011 2010 34% 20% 12% 23% |
Asia Pacific 11 FY 2011 Real Estate Services Revenue ($ in millions; % change in USD ) Americas EMEA Leasing Capital Markets & Hotels Property & Facility Management Project & Development Services Advisory, Consulting & Other Total RES Operating Revenue $760.2 $136.1 $335.6 $178.5 $112.2 $1,522.6 19% 62% 25% 12% 2% 21% $236.1 $229.1 $152.8 $182.5 $173.5 $974.0 17% 62% 7% 59% 36% 34% $192.3 $94.8 $364.6 $80.8 $83.8 $816.3 22% 16% 20% 27% 17% 20% $1,188.6 $460.0 $853.0 $441.8 $369.5 $3,312.9 19% 50% 19% 31% 20% 24% Total RES Revenue Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). |
$235.9 $223.2 2011 2010 $66.2 $66.8 2011 2010 $340.3 $237.4 2011 2010 12 Q4 2011 Revenue Performance Note: Equity earnings (losses) of $3.7M and ($0.4M) in 2011 and 2010, respectively, are included in segment results, however, are excluded from Consolidated totals. Americas EMEA Asia Pacific $509.5 $428.5 2011 2010 Consolidated $1,148.2 $956.3 2011 2010 ($ in millions, % change in USD) LIM 19% 43% 6% 1% 20% |
Asia Pacific 13 Q4 2011 Real Estate Services Revenue Americas EMEA Leasing Capital Markets & Hotels Property & Facility Management Project & Development Services Advisory, Consulting & Other Total RES Operating Revenue $258.4 $48.2 $115.2 $54.4 $33.3 $509.5 13% 37% 34% 13% 8% 19% $81.0 $103.1 $42.4 $51.6 $62.2 $340.3 17% 98% 4% 60% 44% 43% $69.1 $22.0 $98.9 $20.9 $25.0 $235.9 12% (25%) 11% 11% 4% 6% $408.5 $173.3 $256.5 $126.9 $120.5 $1,085.7 14% 49% 19% 28% 22% Total RES Revenue 23% Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). ($ in millions; % change in USD ) |
A premier global investment manager LaSalle Investment Management Note: AUM data reported on a one-quarter lag 2011 Highlights AUM by Fund type ($ in billions) • Investment performance at or above benchmarks for all business segments • Nearly $5 billion of net capital raised in 2011, consistent with 2010 • High-margin advisory fees contribute to operating income margin of 21% • Trinity Funds Management acquisition added $700 M of AUM and established LaSalle as a domestic player in capital-rich Australia Product Assets Under Management ($ in billions) Average Performance Private Equity U.K. $11.9 Above benchmark Continental Europe $4.3 Return: >1x equity North America $10.7 Above benchmark Asia Pacific $9.0 Return: >1x equity Public Securities $11.8 Above benchmark Total Q4 2011 AUM $47.7 B 14 |
Solid Cash Flows and Balance Sheet Position • Steady quarterly improvement in Cash from Operations - Cash from earnings, excluding Restructuring and acquisition charges, increased $30 million versus Q4 2010 - Working capital impacted by higher receivables resulting from strong year end transaction revenue • Fourth quarter acquisition activity includes Pacific Real Estate Partners, Procon and DST - Smaller transactions in strategically important markets • Investment grade balance sheet; Baa2 / BBB- (Stable) - Low debt cost: 2011 net interest expense of $36 million vs. $46 million in 2010 - Total net debt reduced $184 million in Q4 2011 to end year at $643 million 2011 Highlights ($ in millions) 2011 2010 Q1 Q2 Q3 Q4 Q4 Cash from Earnings $42 $81 $68 $120 $124 Working Capital (239) (20) 27 133 152 Cash (used in) from Operations ($197) $61 $95 $253 $276 Primary Uses Capital Expenses (17) (19) (20) (36) (25) Acquisitions & Deferred Payment Obligations (25) (210) (162) (19) (17) Co-Investment (2) 2 (47) 2 6 Dividends - (7) - (7) (5) Net Cash Outflows ($44) ($234) ($229) ($60) ($41) Net Share Activity & Other Financing (4) (2) (8) (2) 4 Net Bank Debt Borrowings ($245) ($175) ($142) $191 $239 15 |
Appendix |
17 FY 2011 Adjusted EBITDA* Performance Americas EMEA Asia Pacific LIM $201.2 $183.9 2011 2010 Consolidated $394.9 $336.7 2011 2010 * Refer to slide 20 for Reconciliation of GAAP Net Income to adjusted EBITDA for the twelve months ended December 31, 2011, and 2010, for details relative to these adjusted EBITDA calculations. Segment EBITDA is calculated by adding the segment’s Depreciation and amortization to its reported Operating income, which excludes Restructuring and acquisition charges. Consolidated adjusted EBITDA is the sum of the EBITDA of the four segments less net income attributable to non-controlling interest and, dividends on unvested common stock. ($ in millions) $38.3 $57.3 2011 2010 $78.4 $62.4 2011 2010 $59.7 $53.0 2011 2010 |
18 Q4 2011 Adjusted EBITDA* Performance Americas EMEA Asia Pacific LIM $94.1 $78.7 2011 2010 Consolidated $179.0 $143.1 2011 2010 * Refer to slide 20 for Reconciliation of GAAP Net Income to adjusted EBITDA for the three months ended December 31, 2011, and 2010, for details relative to these adjusted EBITDA calculations. Segment EBITDA is calculated by adding the segment’s Depreciation and amortization to its reported Operating income, which excludes Restructuring and acquisition charges. Consolidated adjusted EBITDA is the sum of the EBITDA of the four segments less net income attributable to non-controlling interests and dividends on unvested common stock. ($ in millions) $43.0 $25.6 2011 2010 $28.2 $28.7 2011 2010 $13.9 $10.4 2011 2010 |
19 ($ in millions) Reconciliation of GAAP Net Income to Adjusted Net Income Three Months Ended December 31, Twelve Months Ended December 31, 2011 2010 2011 2010 GAAP Net income attributable to common shareholders $ 84.8 $ 84.4 $ 164.0 $ 153.5 Shares (in 000s) 44,402 44,235 44,367 44,084 GAAP earnings per share $ 1.91 $ 1.91 $ 3.70 $ 3.48 GAAP Net income attributable to common shareholders $ 84.8 $ 84.4 $ 164.0 $ 153.5 Restructuring and acquisition charges, net 25.2 0.7 41.9 4.9 Intangible amortization, net 3.6 - 8.6 - Non-cash co-investment charges, net - 0.7 - 7.9 Adjusted net income $ 113.6 $ 85.8 $ 214.5 $ 166.3 Shares (in 000s) 44,402 44,235 44,367 44,084 Adjusted earnings per share $ 2.56 $ 1.94 $ 4.83 $ 3.77 |
20 ($ in millions) Reconciliation of GAAP Net Income to Adjusted EBITDA Three Months Ended December 31, Twelve Months Ended December 31, 2011 2010 2011 2010 GAAP Net income attributable to common shareholders $84.8 $84.4 $164.0 $153.5 Interest expense, net of interest income 8.4 10.1 35.6 45.8 Provision for income taxes 29.5 28.2 56.4 49.0 Depreciation and amortization 22.3 18.6 82.8 71.6 EBITDA $ 145.0 $ 141.3 $ 338.8 $ 319.9 Restructuring and acquisition charges 34.0 0.9 56.1 6.4 Non-cash co-investment charges - 0.9 - 10.4 Adjusted EBITDA $ 179.0 $ 143.1 $ 394.9 $ 336.7 |