Supplemental Information 3rd Quarter 2017 Earnings Call

Transcription

1 Supplemental Information 3rd Quarter 2017 Earnings Call November 6, 2017

2 Global market overview Q Macro-economic operating environment Global economic momentum continues with modest uplift in GDP outlook U.S. growth temporarily impacted by hurricanes but sound underpinnings of growth remain Developed and emerging markets expanding together, first time since last recession Growth sustained across the Eurozone, but slowing in the UK FOMC indicates gradual balance sheet asset reduction Sound fundamentals in Asia Pacific 2017 Global real estate outlook Stable real estate fundamentals supported by economic growth despite geopolitical uncertainty Investment volumes on pace to match 2016; regional volumes shift from U.S. to rest of world Continued strong office leasing demand driven by employment, business sentiment and new supply options Source: JLL Research, October 2017 Leasing, vacancy, rental and capital value projections relate to the office sector 2

3 Consolidated Q financial results Q Highlights $1.6B Fee revenue $168M $1.96 diluted EPS Double-digit Real Estate Services revenue growth led by EMEA and Asia Pacific Robust transactional and annuity expansion Acquisitions account for approximately one-third of fee revenue growth LaSalle continues strong revenue growth due to incentive fees earned on opportunistic dispositions margin performance reflects: Organic margin expansion Higher than anticipated LaSalle incentive fees Continued cash flow from operations improvement driven by working capital management, up approximately $450 million year-to-date over prior year Semi-annual dividend of $0.37 per share; up 13 percent annually over 2016 Upcoming Inaugural Investor day on December 13th, 2017; additional details available at Refer to pages for definitions and reconciliations of non-gaap financial measures Annuity Revenue defined as 100% of Property & Facility Management and LaSalle Advisory Fee Revenue, 50% of Leasing, Project & Development Services and Advisory & Consulting Revenue 3

4 Q Real Estate Services revenue ($ in millions; % change in local currency over QTD Q3 2016) Americas EMEA Asia Pacific Total RES Leasing $ ó 3% $ 70.4 ó 9% $ 53.0 ó 5% $ ó 4% Capital Markets & Hotels- Fee $ ò (2)% $ ó 19% $ 54.4 ó 33% $ ó 12% Gross Revenue $ ó 2% $ ó 19% $ 54.4 ó 33% $ ó 13% Property & Facility Management - Fee $ ó 2% $ ó 27% $ ó 11% $ ó 13% Gross Revenue $ ò (2)% $ ó 37% $ ó 25% $ ó 19% Project & Development Services - Fee $ 93.8 ó 8% $ 59.7 ó 36% $ 32.7 ó 22% $ ó 18% Gross Revenue $ 97.8 ó 1% $ ó 6% $ 65.8 ó 52% $ ó 11% Advisory, Consulting & Other $ 57.9 ó 37% $ 65.2 ó 13% $ 42.2 ó 6% $ ó 18% Total RES Operating Fee Revenue $ ó 5% $ ó 21% $ ó 13% $ 1,522.5 ó 11% Total Gross Revenue $ ó 3% $ ó 19% $ ó 24% $ 1,844.9 ó 13% Capital Markets & Hotels revenue includes both gross and fee presentation, with the difference between the two amounts representing net non-cash activity associated with mortgage servicing rights and mortgage banking derivatives, which is also excluded from our calculation of adjusted operating income, adjusted and adjusted diluted earnings per share Refer to pages for definitions and reconciliations of non-gaap financial measures 4

5 YTD 2017 Real Estate Services revenue ($ in millions; % change in local currency over YTD 2016) Americas EMEA Asia Pacific Total RES Leasing $ 1,003.1 ó 13% $ ó 11% $ ó 3% $ 1,319.3 ó 12% Capital Markets & Hotels - Fee $ ó 10% $ ó 13% $ ó 15% $ ó 12% Gross Revenue $ ó 13% $ ó 13% $ ó 15% $ ó 13% Property & Facility Management - Fee $ ó 5% $ ó n.m. $ ó 12% $ 1,267.1 ó 35% Gross Revenue $ ó 2% $ ó n.m. $ ó 20% $ 1,716.0 ó 36% Project & Development Services - Fee $ ó 19% $ ó 9% $ 90.5 ó 29% $ ó 17% Gross Revenue $ ó 17% $ ó 1% $ ó 45% $ ó 12% Advisory, Consulting & Other $ ó 54% $ ó 11% $ ó 9% $ ó 23% Total RES Operating Fee Revenue $ 2,168.8 ó 14% $ 1,262.4 ó 37% $ ó 12% $ 4,254.1 ó 20% Total Gross Revenue $ 2,311.3 ó 13% $ 1,727.1 ó 32% $ 1,095.4 ó 19% $ 5,133.8 ó 20% Capital Markets & Hotels revenue includes both gross and fee presentation, with the difference between the two amounts representing net non-cash activity associated with mortgage servicing rights and mortgage banking derivatives, which is also excluded from our calculation of adjusted operating income, adjusted and adjusted diluted earnings per share Refer to pages for definitions and reconciliations of non-gaap financial measures 5

6 JLL Capital Markets & Leasing performance vs market QUARTERLY PERFORMANCE YTD PERFORMANCE FULL-YEAR PERFORMANCE Q YTD 2017 Full-year 2017 Actual Research Actual Research Current Forecast Prior Forecast Capital Markets JLL Revenue Market Volume JLL Revenue Market Volume Market Volume Market Volume USD USD USD USD USD USD Americas (2)% (20)% 10% (11)% (10)% -5% to Flat EMEA 23% 24% 9% 14% 10% Flat Asia Pacific 33% 5% 14% 12% Flat Flat Total 13% ó Flat 1 10% ó 2% ó Flat 1 Flat 1 Leasing JLL Revenue Gross Absorption JLL Revenue QUARTERLY PERFORMANCE YTD PERFORMANCE FULL-YEAR PERFORMANCE Q YTD 2017 Full-year 2017 Actual Research Actual Research Current Forecast Prior Forecast Gross Absorption Gross Absorption Gross Absorption Local Currency Square Feet Local Currency Square Feet Square Feet Square Feet Americas 3% 4% 13% 2% 0-5% 0-5% EMEA 9% 7% 11% 6% 0-5% -5% to Flat Asia Pacific 5% 3% 3% 2% Flat -5% to Flat Total 4% ó 5% ó 12% ó 3% ó 2-5% ó Flat 1 Source: JLL Research, October 2017 Capital Markets market research volumes reflect investment sales excluding multi-family assets. JLL Capital Markets revenue includes investment sales, debt financing and other advisory services across all asset types Q EMEA Capital Markets excluding UK: JLL up 23%; Market up 6% Q EMEA Leasing excluding UK: JLL up 1%; Market; 1% 6

7 Consolidated adjusted margin performance LaSalle Opportunistic incentive fees and equity earnings equityearningsormali z Positive organic contribution Transactional growth led by EMEA & APAC Technology Continued strategic investment into data & technology M&A Reflects business ramp up through integration Q Consolidated Margin Other Various discrete items LaSalle assumes ~40% margin on Transaction and Incentive Fees and ~90% margin on equity earnings All margin percentage references are on a Fee Revenue basis and in USD; basis points (bps are approximated) M&A represents transactions completed subsequent to Q3 2016, adjusted to account for the timing of our August 2016 Integral acquisition Refer to pages for definitions and reconciliations of non-gaap financial measures 7

8 Strong balance sheet Cash Use ($ in millions) Q3 YTD 2017 Q3 YTD 2016 Highlights M&A (Including deferred) (1) $60 $465 Co-investment (2) 2 44 Dividends Capital Expenditures (3) Investment Grade Ratings Moody s: Baa1 (Stable) S&P: BBB (Stable) Q3 and YTD 2017 cash use reflects planned reduction in M&A and CapEx Total $176 $654 Balance Sheet ($ in millions) Q Q Cash and Cash Equivalents $278 $228 Short Term Borrowings $295M 2017 YTD Cash from Operations Working capital improvement driving debt reduction and cash flow Credit Facility (4) 450 1,105 Net Bank Debt (Net Cash Position) $236 $933 Long Term Senior Notes (4) Deferred Business Acquisition Obligations Total Net Debt $1,013 $1,305 Net Debt / TTM (5) 1.5x 1.9x $2.75B Credit Facility Credit facility capacity & maturity in June 2021 Adequate liquidity to support continued longterm growth aligned with investment grade balance sheet (1) Includes payments made at close plus guaranteed deferred payments and earn-outs paid during the period for transactions closed in prior periods. (2) Capital contributions are offset by distributions, and includes amounts contributed to consolidated less than wholly-owned investments. (3) Excludes capital leases and tenant improvement reimbursements that are required to be included under U.S. GAAP. (4) Principal balances shown exclude debt issuance costs of $21M and $23M for Q and Q respectively. (5) Refer to pages for definitions and reconciliations of non-gaap financial measures 8

9 2017 business outlook - as of January JLL strategic focus Balanced revenue growth across profitable markets while delivering superior client services to grow market share and win new relationships Continue strategic investment into technology and innovation to accelerate scalable growth and increase operating leverage Translate revenue growth into profitable and sustainable margin performance: Increase operational efficiencies by managing platform operating costs Expand sustainable margins and evaluate underperforming businesses to optimize portfolio Continue disciplined integration of acquisitions to drive maximum return on invested capital 2017 operating assumptions 8-11% Fee revenue growth 10-12% margin ~$30M LaSalle incentive fees ~$20M Equity earnings +/-$0.15 FX EPS impact Fee revenue growth assumption relates to Real Estate Service segments ( RES ) Refer to pages for definitions and reconciliations of non-gaap financial measures Equity earnings expected to be driven primarily by fair value adjustments to investments in real estate ventures 9

10 2018 outlook 2018 Global real estate outlook Late-cycle momentum extends into 2018 Investment volumes to remain near historical highs despite expected marginal softening due to investor discipline and caution Office leasing markets anticipated to be broadly stable with 2017, supported by higher global economic growth and increasing supply options 2018 JLL priorities Leverage Corporate Solutions platform to drive profitable growth Broaden capital market capabilities across capital stack Drive differentiation through technology Focus capital allocation strategy on transformational growth Generate cash flow from working capital focus Continue platform transformation to support operational efficiency Source: JLL Research, October 2017 Leasing, vacancy, rental and capital value projections relate to the office sector 10

11 2017 Jones Lang LaSalle IP, Inc. All rights reserved. Segment Details

12 Americas Q financial summary Q Highlights Quarter Commentary $749M Fee revenue $91M 12.1% margin Solid revenue contribution from all service lines with approximately 60% of fee revenue growth derived organically Notable performance in the multifamily debt origination business $2.2B Fee revenue Year-to-Date 2017 Highlights $246M 11.3% margin Leasing performance driven by strength in the Northwest, New York and New England markets Advisory, Consulting and Other reflects contribution from Technology Solutions and recently acquired U.S. valuations platform margin reflects: Continued cost management of controllable expenses Positive organic performance, notably in leasing and Latin America Refer to pages for definitions and reconciliations of non-gaap financial measures 12

13 EMEA Q financial summary Q Highlights Quarter Commentary $464M Fee revenue $14M Year-to-Date 2017 Highlights 3.0% margin Broad-based revenue growth across all service lines with strong transactional contribution; 60% revenue growth driven organically Property and Facilities Management and Project & Development Services driving annuity growth Transactional revenue bounce back from prior year post-brexit; strong capital markets performance in UK, Germany and Finland $1.3B Fee revenue $15M 1.2% margin margin reflects: Transactional performance recovery post-brexit, partially offset by Extended Integral integration Refer to pages for definitions and reconciliations of non-gaap financial measures 13

14 Asia Pacific Q financial summary Q Highlights Quarter Commentary $310M Fee revenue $823M Fee revenue $30M Year-to-Date 2017 Highlights $64M 9.8% margin 7.8% margin Strong revenue growth driven by organic expansion Exceptional Capital Markets performance driven by Australia, Greater China and Japan Continued Corporate Solutions revenue expansion margin reflects: Strong transactional performance Increased platform leverage from expense management Refer to pages for definitions and reconciliations of non-gaap financial measures 14

15 LaSalle Investment Management Q results Q Financial highlights Q AUM highlights $102M Revenue $33M 32.6% margin $59B AUM $0.8B Capital raised $6B Dry powder Quarter Commentary Assets Under Management By geography & type Strong quarter driven by outsized incentive fees and equity earnings Opportunistic disposition of real estate assets in Asia Pacific produces sizable incentive fees margin reflects: Incentive fee performance Stable annuity revenue margins AUM steady with acquisition activity, valuation and foreign exchange increases partially offset by dispositions Asia Pacific $7.9 North America $17.3 Continental Europe ($ in billions) $5.9 Public Securities $11.7 UK $ % Separate UK accounts $ % Fund management Continental Europe 20% $4.3 Public securities AUM data reported on a one-quarter lag Pie chart breakout based on real estate investment location Refer to pages for definitions and reconciliations of non-gaap financial measures 15

16 2017 Jones Lang LaSalle IP, Inc. All rights reserved. Appendix

17 Currency overview Macro currency review Q3 YTD 2017 British pound weakened significantly post-brexit (Q2 2016); relatively stable from Q to Q Euro has appreciated over last 6 months Australian dollar stable with commodity price improvement Japanese yen slightly weakened as a result of macro conditions Currency EPS impact Q YTD JLL EPS impact: $0.11 Q EPS impact : $0.02 Q EPS impact : $0.03 Q EPS impact : $0.06 Driven by strong Euro and EMEA regional British pound-denominated operating expenses GBP EUR AUD $ JPY Currency exchange rate summary Q3 Spot % Change 10/30/ (1)% % % % 114 Average rates calculated based on daily weighted activity in the quarter 17

18 Q Real Estate Services revenue ($ in millions; % change in USD over QTD Q3 2016) Americas EMEA Asia Pacific Total RES Leasing $ ó 3% $ 70.4 ó 11% $ 53.0 ó 6% $ ó 4% Capital Markets & Hotels - Fee $ ò (2)% $ ó 23% $ 54.4 ó 33% $ ó 13% Gross Revenue $ ó 2% $ ó 23% $ 54.4 ó 33% $ ó 15% Property & Facility Management - Fee $ ó 2% $ ó 27% $ ó 11% $ ó 13% Gross Revenue $ ò (2)% $ ó 37% $ ó 26% $ ó 20% Project & Development Services - Fee $ 93.8 ó 9% $ 59.7 ó 40% $ 32.7 ó 22% $ ó 20% Gross Revenue $ 97.8 ó 1% $ ó 10% $ 65.8 ó 53% $ ó 14% Advisory, Consulting & Other Total RES Operating Fee Revenue $ 57.9 ó 37% $ 65.2 ó 16% $ 42.2 ó 7% $ ó 20% $ ó 5% $ ó 23% $ ó 14% $ 1,522.5 ó 12% Total Gross Revenue $ ó 3% $ ó 22% $ ó 25% $ 1,844.9 ó 14% Note: Refer to pages for definitions and reconciliations of non-gaap financial measures n.m. not meaningful as represented by a percentage change of greater than 100%, favorably or unfavorably. 18

19 YTD 2017 Real Estate Services revenue ($ in millions; % change in USD over YTD 2016 ) Americas EMEA Asia Pacific Total RES Leasing $ 1,003.1 ó 13% $ ó 8% $ ó 3% $ 1,319.3 ó 11% Capital Markets & Hotels - Fee $ ó 10% $ ó 9% $ ó 14% $ ó 10% Gross Revenue $ ó 13% $ ó 9% $ ó 14% $ ó 11% Property & Facility Management - Fee $ ó 5% $ ó n.m. $ ó 12% $ 1,267.1 ó 31% Gross Revenue $ ó 1% $ ó 100% $ ó 21% $ 1,716.0 ó 32% Project & Development Services - Fee $ ó 19% $ ó 7% $ 90.5 ó 29% $ ó 17% Gross Revenue $ ó 18% $ ò (1)% $ ó 45% $ ó 11% Advisory, Consulting & Other $ ó 54% $ ó 7% $ ó 10% $ ó 21% Total RES Operating Fee Revenue $ 2,168.8 ó 14% $ 1,262.4 ó 31% $ ó 12% $ 4,254.1 ó 18% Total Gross Revenue $ 2,311.3 ó 13% $ 1,727.1 ó 26% $ 1,095.4 ó 19% $ 5,133.8 ó 18% Note: Refer to pages for definitions and reconciliations of non-gaap financial measures 19

20 Prime Offices Capital Value Clock, Q v Q The JLL Property Clocks SM Q Q Based on notional capital values for Grade A space in CBD or equivalent Source: JLL Research, October The JLL Property Clocks SM 20

21 Prime Offices Rental Clock, Q v Q The JLL Property Clocks SM Q Q Based on notional capital values for Grade A space in CBD or equivalent Source: JLL Research, October The JLL Property Clocks SM 21

22 Q selected business wins Corporate Solutions Capital Markets Leasing & Management 125 South Wacker/300 Wacker, Chicago Sylvan Way/8 Campus Drive, New Jersey Americas General Services Administration Chicago 10 Jay Stree, Brooklyn Port 10 Logistics Center, Houston Brookdale Portfolio, U.S. Longfellow Logistics Center, Livermore, Calif. NCR Polar Bidco Portfolio, Finland New Waverly, Edinburgh EMEA Associated British Ports Global Logistics Portfolio, Europe Honeywell, Prague Serviceplan Student Housing Portfolio, Switzerland Emaar Square, Istanbul Marsh & McLennan Asia Square Tower 2, Singapore 2018 Commonwealth Games Village, Australia Asia Pacific Goldman Sachs City Plaza, Seoul Tian Yuan Xiang Tai Tower, Beijing Australian Federal Government Wynyard Place, Sydney Cognizant Technology Solutions, Kolkata Multi-Region HP Inc. Engie 22

23 Fee revenue / fee-based operating expenses reconciliation Reimbursable vendor, subcontractor and out-of-pocket costs reported as revenue and expense in JLL financial statements have been increasing steadily Gross accounting requirements increase revenue and costs without corresponding increase to profit Business managed on a fee revenue basis to focus on margin expansion in the base business Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) Revenue $ 1,947.0 $ 1,705.2 $ 5,396.9 $ 4,645.6 Gross contract costs (315.3) (258.0) (868.6) (735.5) Net non-cash MSR and mortgage banking derivative activity (7.1) (2.9) (11.1) (2.3) Fee revenue $ 1,624.6 $ 1,444.3 $ 4,517.2 $ 3,907.8 Operating expenses $ 1,828.9 $ 1,634.2 $ 5,152.2 $ 4,431.3 Gross contract costs (315.3) (258.0) (868.6) (735.5) Fee-based operating expenses $ 1,513.6 $ 1,376.2 $ 4,283.6 $ 3,695.8 Operating income $ $ 71.0 $ $ Restructuring and acquisition charges Net non-cash MSR and mortgage banking derivative activity (7.1) (2.9) (11.1) (2.3) Amortization of acquisition-related intangibles operating income $ $ 93.2 $ $ operating income margin 7.5% 6.4% 6.0% 6.7% Note: Restructuring and acquisition charges, Mortgage servicing rights (MSRs) - net non-cash activity, and Amortization of acquisition-related intangibles are excluded from adjusted operating income margin. 23

24 Reconciliation of GAAP Net Income to Net Income and Diluted Earnings Per Share Three Months Ended September 30, Nine Months Ended September 30, ($ in millions except per share data) GAAP net income attributable to common shareholders $ 86.6 $ 48.0 $ $ Shares (in 000s) 45,814 45,612 45,729 45,515 GAAP diluted earnings per share $ 1.89 $ 1.05 $ 3.84 $ 3.35 GAAP net income attributable to common shareholders $ 86.6 $ 48.0 $ $ Restructuring and acquisition charges Net non-cash MSR and mortgage banking derivative activity (7.1) (2.9) (11.1) (2.3) Amortization of acquisition-related intangibles, net Tax impact of adjusted items (1.0) (5.5) (7.6) (12.3) net income $ 89.6 $ 64.7 $ $ Shares (in 000s) 45,814 45,612 45,729 45,515 diluted earnings per share (1) $ 1.96 $ 1.42 $ 4.23 $ 4.17 (1) Calculated on a local currency basis, the results for the three and nine months ended 2017 include a $0.02 and $0.11 favorable impact, due to foreign exchange rate fluctuations. 24

25 Reconciliation of GAAP Net Income to Three Months Ended September 30, Nine Months Ended September 30, Trailing Twelve Months Ended September 30, ($ in millions) GAAP net income attributable to common shareholders $ 86.6 $ 48.0 $ $ $ $ Interest expense, net of interest income Provision for income taxes Depreciation and amortization $ $ $ $ $ $ Restructuring and acquisition charges Net non-cash MSR and mortgage banking derivative activity $ (7.1) $ (2.9) $ (11.1) $ (2.3) $ (32.3) $ (1.6) $ $ $ $ $ $ Net income margin attributable to common shareholders margin (presented on a local currency basis) 4.4% 2.8% 3.3% 3.3% 4.5% 5.3% 10.3% 8.8% 8.6% 9.5% 10.5% 12.2% attributable to common shareholders (" ") represents attributable to common shareholders ( ) further adjusted for certain items we do not consider directly indicative of our ongoing performance in the context of certain performance measurements. Above is a reconciliation of Net income attributable to common shareholders to and. 25

26 Non-GAAP Measures Management uses certain non-gaap financial measures to develop budgets and forecasts, measure and reward performance against those budgets and forecasts, and enhance comparability to prior periods. These measures are believed to be useful to investors and other external stakeholders as supplemental measures of core operating performance and include the following: (i) Fee revenue and Fee-based operating expenses, (ii) operating income, (iii) and margin, (iv) net income and diluted earnings per share, and (v) Percentage changes against prior periods, presented on a local currency basis. However, non-gaap financial measures should not be considered alternatives to measures determined in accordance with U.S. generally accepted accounting principles ( GAAP ). Any measure that eliminates components of a company s capital structure, cost of operations or investment, or other results has limitations as a performance measure. In light of these limitations, management also considers GAAP financial measures and does not rely solely on non-gaap financial measures. Because the company s non-gaap financial measures are not calculated in accordance with GAAP, they may not be comparable to similarly titled measures used by other companies. Adjustments to GAAP Financial Measures Used to Calculate non-gaap Financial Measures Consistent with GAAP, certain vendor and subcontractor costs ( gross contract costs ) which are managed by the company on certain client assignments in the Property & Facility Management and Project & Development Services business lines are presented on a gross basis in Revenue and Operating expenses. The company generally earns little to no margin on the reimbursement of gross contract costs, obtaining reimbursement only for costs incurred. Excluding gross contract costs from both Revenue and Operating expenses more accurately reflects how the company manages its expense base and its operating margins. Net non-cash mortgage servicing rights ("MSR") and mortgage banking derivative activity consists of the balances presented within Revenue composed of (i) derivative gains/losses resulting from mortgage banking loan commitment activity and (ii) gains recognized from the retention of MSR upon origination and sale of mortgage loans, offset by (iii) amortization of MSR intangible assets over the period that net servicing income is projected to be received. Non-cash derivative gains/losses resulting from mortgage banking loan commitment activity are calculated as the estimated fair value of loan commitments and subsequent changes thereof, primarily represented by the estimated net cash flows associated with future servicing rights. MSR gains and corresponding MSR intangible assets are calculated as the present value of estimated cash flows over the estimated mortgage servicing periods. The above activity is reported entirely within Revenue of the Capital Markets & Hotels business line of the Americas segment. Excluding net non-cash MSR and mortgage banking derivative activity reflects how the company manages and evaluates performance because the excluded activity is non-cash in nature. Restructuring and acquisition charges primarily consist of: (i) severance and employment-related charges, including those related to external service providers, incurred in conjunction with a structural business shift, which can be represented by a notable change in headcount, change in leadership or transformation of business processes; (ii) acquisition and integration-related charges, including non-cash fair value adjustments to assets and liabilities recorded in purchase accounting such as earn-out liabilities and intangible assets; and (iii) lease exit charges. Such activity is excluded as the amounts are generally either non-cash in nature or the anticipated benefits from the expenditures would not likely be fully realized until future periods. As noted within Note 5, Restructuring and acquisition charges are excluded from segment operating results and therefore not a line item in the segments reconciliation from operating income to adjusted operating income and. Amortization of acquisition-related intangibles, primarily composed of the estimated fair value ascribed at closing of an acquisition to assets such as acquired management contracts, customer backlog and trade name, is more notable following the company's increase in acquisition activity over the past few years. At the segment reporting level, this is the only reconciling difference between operating income and adjusted operating income, except for the Americas segment, where Net non-cash MSR and mortgage banking derivative activity is also excluded. Percentage Variances Local Currency In discussing our operating results, we report margins and refer to percentage changes in local currency, unless otherwise noted. Amounts presented on a local currency basis are calculated by translating the current period results of our foreign operations to U.S. dollars using the foreign currency exchange rates from the comparative period. We believe this methodology provides a framework for assessing performance and operations excluding the effect of foreign currency fluctuations. 26

27 Cautionary note regarding forward-looking statements Statements in this news release regarding, among other things, future financial results and performance, achievements, plans and objectives, and dividend payments may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Such statements involve known and unknown risks, uncertainties, and other factors which may cause our actual results, performance, achievements, plans and objectives, and dividend payments to be materially different from those expressed or implied by such forward-looking statements. For additional information concerning risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated in forward-looking statements, and risks to our business in general, please refer to those factors discussed under Business, Management s Discussion and Analysis of Financial Condition and Results of Operations, Quantitative and Qualitative Disclosures about Market Risk, and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2016, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2017, and June 30, 2017, and in other reports filed with the Securities and Exchange Commission (the SEC ). There can be no assurance that future dividends will be declared since the actual declaration of future dividends, and the establishment of record and payment dates, remains subject to final determination by our Board of Directors. Any forward-looking statements speak only as of the date of this release, and except to the extent required by applicable securities laws, we expressly disclaim any obligation or undertaking to publicly update or revise any forward-looking statements contained herein to reflect any change in our expectations or results, or any change in events Jones Lang LaSalle IP, Inc. All rights reserved. No part of this publication may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of Jones Lang LaSalle IP, Inc. 27

28 2017 Jones Lang LaSalle IP, Inc. All rights reserved.