EXHIBIT 99.2
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JONES LANG LASALLE
Real value in a changing world
SUPPLEMENTAL INFORMATION
FOURTH QUARTER 2008 EARNINGS CALL
JONES LANG LASALLE - PAGE - 2:
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME
FY 2008
[ Graphics indicating ]
($ in millions after tax, except per share)
Net Income = $83.5 $2.44/share
+ Restructuring Charges $22.8 $0.67/share
Pre-tax = $30.4
+ Intangibles Amortization $13.2 $0.39/share
Pre-tax = $17.6
+ Staubach Purchase
Accounting (1)
Pre-tax = $9.7 $ 7.3 $0.21/share
Adjusted Net Income = $126.8m, $3.71/share
(1) $21.6 million in Staubach leasing activity that could not be
recognized as revenue under U.S. GAAP purchase accounting would
have provided an additional $7.3 million on net income, or $0.21
per share.
JONES LANG LASALLE - PAGE - 3:
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME
Q4 2008
[ Graphics indicating ]
($ in millions after tax, except per share)
Net Income = $41.2 $1.17/share
+ Restructuring Charges $15.1 $0.43/share
Pre-tax = $20.1
+ Intangibles Amortization $ 6.2 $0.18/share
Pre-tax = $8.3
+ Staubach Purchase
Accounting (1)
Pre-tax = $3.3 $ 2.5 $0.07/share
Adjusted Net Income = $65.0m, $1.85/share
(1) $7.4 million in Staubach leasing activity that could not be
recognized as revenue under U.S. GAAP purchase accounting would
have provided an additional $2.5 million of net income, or $0.07
per share.
JONES LANG LASALLE - PAGE - 4:
FY 2008 REVENUE PERFORMANCE
[ Graphics indicating ]
($ in millions; "LC" = Local Currency)
Increase
2007-08 (Decrease)
Increase in Local
2007 2008 (Decrease) Currency
------- ------ ---------- ----------
Americas $ 765 $ 933 22%
EMEA $ 926 $ 871 (6%) (5%)
Asia Pacific $ 602 (1) $ 536 (11%) (14%)
LIM $ 371 $ 352 (5%) (6%)
Consolidated $2,652 (1) $2,698 2% 1%
NOTE: Equity earnings are included in segment results, however, are
excluded from Consolidated totals.
(1) Includes Asia Pacific Hotels advisory fee.
JONES LANG LASALLE - PAGE - 5:
Q4 2008 REVENUE PERFORMANCE
[ Graphics indicating ]
($ in millions; "LC" = Local Currency)
Increase
2007-08 (Decrease)
Increase in Local
2007 2008 (Decrease) Currency
------ ------ ---------- ----------
Americas $ 250 $ 315 26%
EMEA $ 327 $ 243 (26%) (13%)
Asia Pacific $ 170 $ 144 (15%) (4%)
LIM $ 115 $ 91 (21%) (16%)
Consolidated $ 862 $ 797 (8%) 1%
NOTE: Equity earnings are included in segment results, however, are
excluded from Consolidated totals.
JONES LANG LASALLE - PAGE - 6:
FY 2008 CAPITAL MARKETS AND HOTELS REVENUE
[ Graphics indicating ]
($ in millions; "LC" = Local Currency)
2008
Increase
2006-07 2007-08 (Decrease)
Increase Increase in Local
2006 2007 (Decrease) 2008 (Decrease) Currency
------ ------ ---------- ------ ---------- ----------
Americas $ 89.3 $105.2 18% $ 47.6 (55%)
EMEA $288.9 $347.3 20% $195.8 (44%) (43%)
Asia Pacific $ 64.5 $105.4(1) 63% $ 53.4 (49%) (48%)
Consolidated $442.7 $557.8(1) 26% $296.8 (47%) (46%)
(1) Includes Asia Pacific Hotels advisory fee.
JONES LANG LASALLE - PAGE - 7:
Q4 2008 CAPITAL MARKETS AND HOTELS REVENUE
[ Graphics indicating ]
($ in millions; "LC" = Local Currency)
2008
Increase
2006-07 2007-08 (Decrease)
Increase Increase in Local
2006 2007 (Decrease) 2008 (Decrease) Currency
------ ------ ---------- ------ ---------- ----------
Americas $ 34.1 $ 31.5 (8%) $ 6.7 (79%)
EMEA $122.6 $114.3 (7%) $ 58.0 (49%) (41%)
Asia Pacific $ 32.4 $ 41.3 27% $ 16.7 (60%) (54%)
Consolidated $189.2 $187.1 (1%) $ 81.4 (56%) (51%)
JONES LANG LASALLE - PAGE - 8:
FY 2008 Leasing Revenue
[ Graphics indicating ]
($ in millions; "LC" = Local Currency)
2008
Increase
2006-07 2007-08 (Decrease)
Increase Increase in Local
2006 2007 (Decrease) 2008 (Decrease) Currency
------ ------ ---------- --------- ---------- ----------
Americas $194.5 $229.3 18% $348.3(1) 52%
EMEA $162.8 $226.9 39% $246.7 9% 8%
Asia Pacific $ 87.3 $126.2 45% $132.7 5% 6%
Consolidated $444.6 $582.4 31% $727.8(1) 25% 25%
t
(1) Includes Staubach
JONES LANG LASALLE - PAGE - 9:
Q4 2008 Leasing Revenue
[ Graphics indicating ]
($ in millions; "LC" = Local Currency)
2008
Increase
2006-07 2007-08 (Decrease)
Increase Increase in Local
2006 2007 (Decrease) 2008 (Decrease) Currency
------ ------ ---------- --------- ---------- ----------
Americas $ 78.2 $ 82.7 6% $133.7(1) 62%
EMEA $ 63.4 $ 89.4 41% $ 74.2 (17%) (8%)
Asia Pacific $ 34.0 $ 51.3 51% $ 38.7 (25%) (15%)
Consolidated $175.6 $223.3 27% $246.6(1) 10% 18%
JONES LANG LASALLE - PAGE - 10:
FY 2008 LIM Revenue
[ Graphics indicating ]
($ in millions)
2006-07 2007-08
Increase Increase
2006 2007 (Decrease) 2008 (Decrease)
--------- ------ ---------- ------ ----------
Advisory and
Transaction
Fees $206.7 $272.9 32% $297.0 9%
Incentive
Fees $170.6(1) $ 88.2 (48%) $ 59.0 (33%)
Equity
Earnings/
(loss) $ 7.1 $ 9.7 37% $ (4.1) n.m.
Consolidated $384.3(1) $370.8 (4%) $351.8 (5%)
NOTES:
. LIM FY 2008 Impairment charges of $5M included in Equity
Earnings/(Loss)
. No Impairment charges taken in 2007 or 2006
. n.m. - not meaningful
(1) Includes single incentive fee of $112.5 million
JONES LANG LASALLE - PAGE - 11:
Q4 2008 LIM Revenue
[ Graphics indicating ]
($ in millions)
2006-07 2007-08
Increase Increase
2006 2007 (Decrease) 2008 (Decrease)
------ ------ ---------- ------ ----------
Advisory and
Transaction
Fees $ 60.6 $ 83.8 38% $ 66.8 (20%)
Incentive
Fees $ 24.6 $ 30.5 24% $ 26.5 (13%)
Equity
Earnings/
(loss) ($ 0.3) $ 0.4 n.m. ($ 2.8) n.m.
Consolidated $ 84.9 $114.7 35% $ 90.5 (21%)
NOTES:
. LIM Q4 2008 Impairment charges of $4M included in Equity
Earnings/(Loss)
. No Impairment charges taken in 2007 or 2006
. n.m. - not meaningful
JONES LANG LASALLE - PAGE - 12:
2008 COST ACTIONS
.. AGGRESSIVE ACTION ON COST REDUCTIONS FOR DISCRETIONARY SPEND CONTROL
.. COMPENSATION ACTIONS
- Americas leasing business to commission-based model
- Salary reductions in selected Asian countries
- Unpaid leaves in Hotels
- Salary freezes or minimal merit increases in all businesses
.. 2008 SEVERANCE CHARGES OF $23 MILLION WITH PAYBACK OF SIX TO NINE
MONTHS
- ------------------------------------------------------------------------
STAFFING ACTIONS THROUGHOUT THE YEAR
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AMERICAS EMEA ASIA PACIFIC
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Capital Markets 10% reduction 7% reduction
- 20% reduction across region across region
60 professionals Capital Markets - Capital Markets -
redeployed 16% reduction 8% reduction
Leasing -
12% reduction
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HOTELS LIM CONSOLIDATED
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12% reduction 7% reduction Staff reductions of
worldwide (actioned in 2009) over 800 globally
Mature Markets Further reductions
(US/UK/Aus) - will depend upon
30% reductions economic environment
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NOTE: Percentages are based upon the population of non-reimbursed
employees.
JONES LANG LASALLE - PAGE - 13:
DEBT COVENANTS
Credit Agreements Amended December 2008
To Provide Additional Business Flexibility
December 31, September 30,
2008 2008
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LEVERAGE RATIO CALCULATION:
Credit Facilities $ 484 $ 543
Deferred Business Acquisition
Obligations 385 414
Other - Letters of Credit, etc. 30 40
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Total $ 899 $ 997
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Reported EBITDA*
(trailing twelve months) $ 233 $ 296
Bank Covenant Add-backs:
Pre-December 2008 Amendment 128 148
Post-December 2008 Amendment 40 --
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ADJUSTED EBITDA $ 401 $ 444
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LEVERAGE RATIO 2.24x 2.25x
Maximum 3.50x 3.25x
CASH INTEREST COVERAGE RATIO:
CALCULATED 3.69x 4.14x
Minimum 2.00x 2.00x
AMENDMENT HIGHLIGHTS:
- - Increased maximum allowable Leverage Ratio from 3.25X to 3.50X
through September 2009
- - Provided additions to Adjusted EBITDA for certain non-recurring
charges related primarily to expense-management actions and adjusted
certain other definitions in the agreements
- - Limits on certain spending such as acquisitions, capex, and dividend
increases through September 2009.
- - Total borrowing capacity under the agreements is $870 million
- - Maturity on both agreements remains June 2012
* Refer to page 16 for Reconciliation of GAAP Net Income to Consolidation
EBITDA for the year ended December 31, 2008.
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The firm's December 19, 2008, Form 8-K
filing provides additional information
about the terms of the amendments.
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JONES LANG LASALLE - PAGE - 14:
FY 2008 EBITDA* PERFORMANCE
($ in millions)
2007 2008
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Americas $105.8 $114.9 (1)
EMEA $111.1 $ 50.2
Asia Pacific $ 79.0 (2) $ 17.6
LIM $113.8 $ 84.3
Consolidated $412.7 (2) $233.4 (1)
(1) Excludes $21.6 million of Staubach leasing activity that could not be
recognized as revenue under U.S. GAAP; resulting EBITDA would have
added $9.7m to Americas and Consolidated totals bring the Americas FY
2008 EBITDA total to $124.6 million and Consolidated FY 2008 EBITDA
to $243.1 million
(2) Includes Asia Pacific Hotels advisory fee
* Refer to page 16 for Reconciliation of GAAP Net Income to Consolidated
EBITDA for the years ended December 31, 2008 and 2007. Segment EBITDA is
calculated by adding the segment's Depreciation and amortization to its
reported Operating income, which excludes Restructuring charges.
JONES LANG LASALLE - PAGE - 15:
Q4 2008 EBITDA* PERFORMANCE
($ in millions)
2007 2008
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Americas $ 41.6 $ 55.9 (1)
EMEA $ 53.9 $ 28.1
Asia Pacific $ 24.7 $ 10.8
LIM $ 37.6 $ 20.3
Consolidated $156.1 $ 94.7 (1)
(1) Excludes $7.4 million of Staubach leasing activity that could not be
recognized as revenue under U.S. GAAP; resulting EBITDA would have
added $3.3 million to Americas and Consolidated totals bringing the
Americas Q4 EBITDA total to $59.2 million and consolidated Q4 EBITDA
to $98.0 million.
* Refer to page 16 for Reconciliation of GAAP Net Income to Consolidated
EBITDA for the quarters ended December 31, 2008 and 2007. Segment EBITDA
is calculated by adding the segment's Depreciation and amortization to its
reported Operating income, which excludes Restructuring charges.
JONES LANG LASALLE - PAGE - 16:
RECONCILIATION OF GAAP NET INCOME TO CONSOLIDATED EBITDA
($ in millions)
Three Months Ended Twelve Months Ended
December 31, December 31,
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2008 2007 2008 2007
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Net income $ 41.2 $104.7 $ 83.5 $256.5
Add:
Interest expense, net of
interest income 13.3 3.0 30.6 13.1
Provision for income taxes 13.5 31.7 28.7 87.6
Depreciation and amortization 26.7 16.7 90.6 55.5
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CONSOLIDATED EBITDA $ 94.7 $156.1 $233.4 $412.7
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JONES LANG LASALLE - PAGE - 17:
FY AND Q4 2008 ACQUISITION REVENUE
Contributions from Trailing 12 Months of Acquisitions to 2008 Results
[ Graphics indicating ]
($ in millions)
Expenses Integration
(excl. D+A) Costs EBITDA Total (1)
----------- ----------- ----------- -----------
FY 2008 $162.3 $ 8.2 $ 30.4 $192.7
Q4 2008 $ 79.2 $ 4.6 $ 24.8 $104.0
(1) Excludes $21.6 million and $7.4 million of Staubach leasing activity
for FY and Q4 2008, respectively, that could not be recognized as
revenue under U.S. GAAP, resulting EBITDA would have added $9.7
million to FY and $3.3 million to Q4 2008 totals bringing the EBITDA
totals to $40.1 million and $28.1 million, respectively.