JONES LANG LASALLE INC - FORM 8-K - EX-99.1

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Exhibit 99.1


		News Release


Contact:		Christie B. Kelly
Title:		Global Chief Financial Officer
Phone:		+1 312 228 2316

Jones Lang LaSalle Reports Second Quarter 2013 Revenue Increase to $989 Million

Fee revenue of $908 million, up 7 percent from the second quarter of 2012

CHICAGO, July 30, 2013 – Jones Lang LaSalle Incorporated (NYSE: JLL) today reported adjusted earnings per share (“EPS”) of $1.15 for the second quarter of 2013, up from $1.13 in the prior year. Second-quarter revenue of $989 million was up 8 percent. Fee revenue was $908 million, an increase of 7 percent.

•

Continued solid fee revenue growth with 7 percent increase for the quarter and year to date

•

Strong capital raise by LaSalle Investment Management; $1.8 billion committed in the quarter

•

Capital Markets & Hotels outperformed markets in all regions

•

Leasing growth in the Americas driven by further market share gains

•

Revenue performance in BRIC countries impacted by strong comparable quarter in 2012

•

Healthy corporate outsourcing pipeline; transitioning new clients from previous wins



Summary Financial Results ($ in millions, except per share data)	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012

Revenue	$	989	$	921	$	1,845	$	1,735
Fee Revenue¹	$	908	$	852	$	1,689	$	1,597
Adjusted Net Income²	$	52	$	51	$	68	$	73
U.S. GAAP Net Income	$	46	$	37	$	59	$	51
Adjusted Earnings per Share²	$	1.15	$	1.13	$	1.50	$	1.63
Earnings per Share	$	1.03	$	0.83	$	1.32	$	1.14
Adjusted EBITDA³	$	102	$	95	$	150	$	150
Adjusted EBITDA, Real Estate Services	$	82	$	84	$	*116*	$	112
Adjusted EBITDA, LaSalle Investment Management	$	20	$	11	$	34	$	38

See Financial Statement Notes (1), (2) and (3) following the Financial Statements in this news release

Jones Lang LaSalle Reports Second-Quarter 2013 Results – Page 2

“We are pleased with our revenue growth and particularly with the performance of our Capital Markets & Hotels business globally,” said Colin Dyer, President and Chief Executive Officer of Jones Lang LaSalle. “Leasing results outpaced the overall market despite hesitant corporate occupiers and reduced activity in the BRIC countries. We are moving with confidence into the seasonally strong second half of the year,” Dyer continued.




Consolidated Revenue ($ in millions, “LC” = local currency)	Three Months Ended June 30,				% Change in LC			Six Months Ended June 30,				% Change in LC
	2013		2012		% Change in LC			2013		2012		% Change in LC
Real Estate Services (“RES”)
Leasing	$	298.6	$	299.0		0	%	$	527.8	$	529.2		0	%
Capital Markets & Hotels		157.6		115.7		37	%		278.3		204.5		37	%
Property & Facility Management		257.5		238.4		10	%		508.8		478.6		8	%
Property & Facility Management Fee Revenue¹		*210.6*		199.0		8	%		*422.9*		399.9		7	%
Project & Development Services		120.3		116.7		3	%		234.0		224.3		5	%
Project & Development Services Fee Revenue¹		*86.1*		87.0		0	%		*163.3*		165.4		0	%
Advisory, Consulting and Other		94.1		92.4		2	%		175.5		171.4		3	%

Total RES Revenue	$	928.1	$	862.2		8	%	$	1,724.4	$	1,608.0		8	%

Total RES Fee Revenue¹	$	*847.0*	$	793.1		7	%	$	*1,567.8*	$	1,470.4		7	%

LaSalle Investment Management
Advisory Fees	$	55.1	$	57.2		(2	%)	$	111.5	$	114.6		(1	%)
Transaction Fees & Other		5.2		1.6		n/m			8.3		3.4		n/m
Incentive Fees		1.0		0.3		n/m			1.2		8.7		(86	%)

Total LaSalle Investment Management Revenue	$	61.3	$	59.1		5	%	$	121.0	$	126.7		(3	%)

Total Firm Revenue	$	989.4	$	921.3		8	%	$	1,845.4	$	1,734.7		7	%

Total Firm Fee Revenue¹	$	*908.3*	$	852.2		7	%	$	*1,688.8*	$	1,597.1		7	%

n/m – not meaningful

Consolidated Performance Highlights:

–	Consolidated fee revenue growth of 7 percent, for the second quarter and year to date, was driven by a 37 percent increase in Capital Markets & Hotels, partially offset by revenue decreases in the BRIC countries.

–	Property & Facility Management fee revenue growth of 8 percent for the quarter, 7 percent year to date, was led by 14 percent increases from Asia Pacific, adding to the firm’s annuity revenue base.

Jones Lang LaSalle Reports Second-Quarter 2013 Results – Page 3

–

Consolidated fee-based operating expenses, excluding restructuring and acquisition charges, were $836 million in the second quarter, up 8 percent, and $1.6 billion year to date, up 7 percent, driven partially by the up-front costs of transitioning significant new corporate outsourcing clients that will begin generating revenue in the second half of 2013, as well as variable compensation from increases in Capital Markets revenue.

Balance Sheet and Net Interest Expense

–	The firm reduced total net debt by $37 million during the quarter to $833 million consistent with seasonal borrowing and repayment patterns.

–	Net interest expense for the second quarter was $9.0 million compared with $7.5 million a year ago, reflecting the diversification of our low-cost debt to include $275 million of 10-year Senior Notes fixed at 4.4 percent, which were issued in November 2012.

–	During the quarter, the firm made deferred acquisition and earn-out payments of $72 million primarily related to the Staubach and King Sturge acquisitions.

The final scheduled payment related to Staubach of $34 million will be made in the third quarter of 2013.

Jones Lang LaSalle Reports Second-Quarter 2013 Results – Page 4

Business Segment Performance Highlights

Americas Real Estate Services




Americas Revenue ($ in millions, “LC” = local currency)	Three Months Ended June 30,					% Change in LC			Six Months Ended June 30,					% Change in LC
	2013		2012			% Change in LC			2013		2012			% Change in LC
Leasing	$	197.8	$	187.0			6	%	$	350.1	$	336.6			4	%
Capital Markets & Hotels		53.4		42.1			27	%		92.1		70.0			31	%
Property & Facility Management		110.1		102.2			8	%		218.6		203.6			8	%
Property & Facility Management Fee Revenue¹		*86.3*		82.2			5	%		*175.7*		167.9			5	%
Project & Development Services		42.7		45.1			(5	%)		80.7		84.7			(4	%)
Project & Development Services Fee Revenue¹		*42.3*		44.9			(6	%)		*80.1*		84.4			(5	%)
Advisory, Consulting and Other		27.5		26.8			3	%		51.5		49.7			4	%

Operating Revenue	$	431.5	$	403.2			7	%	$	793.0	$	744.6			7	%
Equity Earnings		0.1		(0.3	)		n/m			0.3		(0.2	)		n/m

Total Segment Revenue	$	431.6	$	402.9			7	%	$	793.3	$	744.4			7	%

Total Segment Fee Revenue¹	$	*407.4*	$	382.7			7	%	$	*749.8*	$	708.4			6	%

n/m – not meaningful

Americas Performance Highlights:

–	Revenue growth was driven by higher transactional revenue, led by Capital Markets & Hotels, up 27 percent for the quarter and 31 percent year to date, partially offset by lower Latin America revenue against the prior year.

–

Fee-based operating expenses were $372 million for the quarter, up 8 percent, driven by up-front transition costs incurred from a number of large new corporate outsourcing clients that will begin generating revenue during the second half of the year, as well as variable compensation from increases in transactional revenue.

–	Operating income was $35 million for the quarter, compared with $38 million in 2012. Operating income margin calculated on a fee revenue basis was 8.7 percent, compared with 9.9 percent last year.

–	Adjusted EBITDA was $47 million for the quarter, compared with $49 million in 2012. EBITDA margin calculated on a fee revenue basis was 11.5 percent in the quarter, compared with 12.7 percent last year.

Jones Lang LaSalle Reports Second-Quarter 2013 Results – Page 5

EMEA Real Estate Services




EMEA Revenue ($ in millions, “LC” = local currency)	Three Months Ended June 30,						% Change in LC			Six Months Ended June 30,						% Change in LC
	2013			2012			% Change in LC			2013			2012			% Change in LC
Leasing	$	60.2		$	66.4			(10	%)	$	109.1		$	113.7			(4	%)
Capital Markets & Hotels		63.2			49.8			28	%		121.5			89.1			37	%
Property & Facility Management		46.9			43.1			10	%		89.7			85.6			5	%
Property & Facility Management Fee Revenue¹		*42.0*			41.8			1	%		*82.5*			82.9			0	%
Project & Development Services		56.2			52.4			6	%		112.1			103.0			9	%
Project & Development Services Fee Revenue¹		*27.6*			25.8			7	%		*51.6*			50.0			3	%
Advisory, Consulting and Other		41.6			42.8			(2	%)		80.7			81.1			1	%

Operating Revenue	$	268.1		$	254.5			6	%	$	513.1		$	472.5			9	%
Equity Earnings		(0.5	)		(0.1	)		n/m			(0.5	)		(0.1	)		n/m

Total Segment Revenue	$	267.6		$	254.4			5	%	$	512.6		$	472.4			9	%

Total Segment Fee Revenue¹	$	*234.1*		$	226.5			4	%	$	*444.9*		$	416.7			7	%

n/m – not meaningful

EMEA Performance Highlights:

–

Revenue growth was driven by Capital Markets & Hotels, up 28 percent for the quarter and 37 percent year to date, led by the UK and France. Revenue growth was partially offset by lower Leasing revenue, particularly in Russia and Germany when compared to 2012 performance that helped drive a 20 percent increase in Leasing revenue for the region in the prior year second quarter.

–	Fee-based operating expenses were $221 million for the quarter, up 4 percent, primarily due to the net increase in transactional revenue activity and increased variable operating costs associated with building pipelines for the second half of the year.

–	Adjusted operating income, which excludes King Sturge amortization, was $14 million for the quarter, compared with $15 million in 2012. Adjusted operating income margin calculated on a fee revenue basis was 5.8 percent compared with 6.6 percent last year.

–	Adjusted EBITDA was $18 million for the quarter, compared with $19 million in 2012. EBITDA margin calculated on a fee revenue basis was 7.7 percent compared with 8.4 percent last year.

Jones Lang LaSalle Reports Second-Quarter 2013 Results – Page 6

Asia Pacific Real Estate Services




Asia Pacific Revenue ($ in millions, “LC” = local currency)	Three Months Ended June 30,					% Change in LC			Six Months Ended June 30,				% Change in LC
	2013			2012		% Change in LC			2013		2012		% Change in LC
Leasing	$	40.6		$	45.6		(10	%)	$	68.6	$	78.9		(12	%)
Capital Markets & Hotels		41.0			23.8		74	%		64.7		45.4		44	%
Property & Facility Management		100.5			93.1		13	%		200.5		189.4		10	%
Property & Facility Management Fee Revenue¹		*82.3*			75.0		14	%		*164.7*		149.1		14	%
Project & Development Services		21.4			19.2		15	%		41.2		36.6		16	%
Project & Development Services Fee Revenue¹		*16.2*			16.3		2	%		*31.6*		31.0		5	%
Advisory, Consulting and Other		25.0			22.8		9	%		43.3		40.6		8	%

Operating Revenue	$	228.5		$	204.5		15	%	$	418.3	$	390.9		10	%
Equity Earnings		(0.1	)		0.1		n/m			0.0		0.1		n/m

Total Segment Revenue	$	228.4		$	204.6		15	%	$	418.3	$	391.0		10	%

Total Segment Fee Revenue¹	$	*205.0*		$	183.6		14	%	$	*372.9*	$	345.1		11	%

n/m – not meaningful

Asia Pacific Performance Highlights:

–

Revenue growth was led by both transactional growth in Capital Markets & Hotels, up 74 percent for the quarter and 44 percent year to date, led by Australia and Singapore, as well as annuity growth in Property & Facility Management, up 14 percent in fee revenue in both periods. This growth was partially offset by Leasing revenue declines in China, India and Australia.

–	Fee-based operating expenses were $192 million for the quarter, up 15 percent, partially due to increased compensation costs from a larger employee base serving Property & Facility Management clients, as well as commissions earned on Capital Markets revenue.

–	Operating income was $13 million for the quarter, consistent with 2012. Operating income margin calculated on a fee revenue basis was 6.5 percent, compared with 7.2 percent last year.

–	Adjusted EBITDA was $16 million for the quarter, compared with $17 million in 2012. EBITDA margin calculated on a fee revenue basis was 8.0 percent, compared with 9.0 percent last year.

Jones Lang LaSalle Reports Second-Quarter 2013 Results – Page 7

LaSalle Investment Management




LaSalle Investment Management Revenue ($ in millions, “LC” = local currency)	Three Months Ended June 30,				% Change in LC			Six Months Ended June 30,				% Change in LC
	2013		2012		% Change in LC			2013		2012		% Change in LC
Advisory Fees	$	55.1	$	57.2		(2	%)	$	111.5	$	114.6		(1	%)
Transaction Fees & Other		5.2		1.6		n/m			8.3		3.4		n/m
Incentive Fees		1.0		0.3		n/m			1.2		8.7		(86	%)

Operating Revenue	$	61.3	$	59.1		5	%	$	121.0	$	126.7		(3	%)
Equity Earnings		9.7		0.2		n/m			14.8		11.9		24	%

Total Segment Revenue	$	71.0	$	59.3		21	%	$	135.8	$	138.6		(1	%)

n/m – not meaningful

LaSalle Investment Management Performance Highlights:

–	$1.8 billion of capital was raised during the quarter, primarily in private equity commitments, which will generate growth in assets under management and in advisory fees as the capital is invested.

–	Advisory fees were $55 million for the quarter, which is consistent with quarterly averages in local currency for the last 12 to 18 months.

–	Operating expenses were $51 million for the quarter, up 4 percent from last year on the increase in operating revenue of 5 percent.

–

Adjusted EBITDA was $20 million for the quarter, a margin of 28.4 percent, compared with $11 million in 2012, a margin of 17.8 percent. The year-over-year improvement in total segment revenue and EBITDA was driven by significant equity earnings recognized in the quarter, reflective of positive investment performance for clients.

–	Assets under management were $46.3 billion as of June 30, 2013, compared with $47.7 billion at March 31, 2013, with the decrease driven primarily by foreign currency movements.

Jones Lang LaSalle Reports Second-Quarter 2013 Results – Page 8

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management. For further information, visit www.jll.com.

200 East Randolph Drive Chicago Illinois 60601 | 22 Hanover Square London W1A 2BN | 9 Raffles Place #39-00 Republic Plaza Singapore 048619

Statements in this press release regarding, among other things, future financial results and performance, achievements, plans and objectives may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance, achievements, plans and objectives of Jones Lang LaSalle to be materially different from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include those 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 Jones Lang LaSalle’s Annual Report on Form 10-K for the year ended December 31, 2012, and in the Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, and in other reports filed with the Securities and Exchange Commission. Statements speak only as of the date of this release. Jones Lang LaSalle expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in Jones Lang LaSalle’s expectations or results, or any change in events.

Jones Lang LaSalle Reports Second-Quarter 2013 Results – Page 9

Conference Call

The firm will conduct a conference call for shareholders, analysts and investment professionals on Tuesday, July 30 at 6:00 p.m. EDT.

To participate in the conference call, please dial into one of the following phone numbers five to ten minutes before the start time:

•

U.S. callers: +1 877 356 3887

•

International callers: +1 706 679 7364

•

Pass code: 17566956

Webcast

Follow these steps to listen to the webcast:

1.	You must have a minimum 14.4 Kbps Internet connection

2.	Log on to http://www.videonewswire.com/event.asp?id=94966 and follow instructions

3.	Download free Windows Media Player software: (link located under registration form)

4.	If you experience problems listening, send an email to prnwebcast@multivu.com

Supplemental Information

Supplemental information regarding the second-quarter 2013 earnings call has been posted to the Investor Relations section of the company’s website: www.jll.com.

Conference Call Replay

Available: 11:00 p.m. EDT Tuesday, July 30 through 11:59 p.m. EDT Thursday, August 8 at the following numbers:

•

U.S. callers: + 1 855 859 2056

•

International callers: + 1 404 537 3406

•

Pass code: 17566956

Web Audio Replay

Audio replay will be available for download or stream. This information and link is also available on the company’s website: www.jll.com.

If you have any questions, email Jones Lang LaSalle’s Investor Relations department at JLLInvestorRelations@am.jll.com.

###

JONES LANG LASALLE INCORPORATED

Consolidated Statements of Operations

For the Three and Six Months Ended June 30, 2013 and 2012

(in thousands, except share data)

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Revenue	$	989,383		$	921,341		$	1,845,371		$	1,734,635

Operating expenses:
Compensation and benefits		634,600			592,928			1,198,320			1,130,444
Operating, administrative and other		262,185			233,765			512,106			466,361
Depreciation and amortization		20,174			19,962			39,254			39,621
Restructuring and acquisition charges		6,602			16,604			9,770			25,556

Total operating expenses		923,561			863,259			1,759,450			1,661,982

Operating income		65,822			58,082			85,921			72,653

Interest expense, net of interest income		(9,049	)		(7,459	)		(16,972	)		(14,885	)
Equity earnings (losses) from unconsolidated ventures		9,076			(47	)		14,558			11,802

Income before income taxes and noncontrolling interest		65,849			50,576			83,507			69,570
Provision for income taxes		16,397			12,846			20,794			17,671

Net income		49,452			37,730			62,713			51,899

Net income attributable to noncontrolling interest		2,921			289			3,027			435

Net income attributable to the Company	$	46,531		$	37,441		$	59,686		$	51,464

Net income attributable to common shareholders	$	46,290		$	37,188		$	59,445		$	51,211

Basic earnings per common share	$	1.05		$	0.85		$	1.35		$	1.17

Basic weighted average shares outstanding		44,101,006			43,718,678			44,090,942			43,661,976

Diluted earnings per common share	$	1.03		$	0.83		$	1.32		$	1.14

Diluted weighted average shares outstanding		45,141,341			44,847,350			45,091,245			44,725,914

EBITDA	$	95,072		$	77,997		$	139,733		$	124,076

Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED

Segment Operating Results

For the Three and Six Months Ended June 30, 2013 and 2012

(in thousands)

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
REAL ESTATE SERVICES
AMERICAS
Revenue:
Operating revenue	$	431,492		$	403,172		$	792,959		$	744,599
Equity earnings (losses)		73			(258	)		291			(208	)

Total segment revenue		431,565			402,914			793,250			744,391
Gross contract costs¹		(24,190	)		(20,132	)		(43,468	)		(36,020	)

Total segment fee revenue		407,375			382,782			749,782			708,371

Operating expenses:
Compensation, operating and administrative expenses		384,659			354,356			721,218			674,032
Depreciation and amortization		11,547			10,496			22,000			20,380

Total segment operating expenses		396,206			364,852			743,218			694,412
Gross contract costs¹		(24,190	)		(20,132	)		(43,468	)		(36,020	)

Total fee-based segment operating expenses		372,016			344,720			699,750			658,392

Operating income	$	35,359		$	38,062		$	50,032		$	49,979

Adjusted EBITDA	$	46,906		$	48,558		$	72,032		$	70,359

EMEA
Revenue:
Operating revenue	$	268,146		$	254,544		$	513,051		$	472,516
Equity losses		(536	)		(85	)		(536	)		(70	)

Total segment revenue		267,610			254,459			512,515			472,446
Gross contract costs¹		(33,519	)		(27,958	)		(67,725	)		(55,659	)

Total segment fee revenue		234,091			226,501			444,790			416,787

Operating expenses:
Compensation, operating and administrative expenses		249,497			235,497			491,022			457,866
Depreciation and amortization		5,027			5,683			10,010			11,885

Total segment operating expenses		254,524			241,180			501,032			469,751
Gross contract costs¹		(33,519	)		(27,958	)		(67,725	)		(55,659	)

Total fee-based segment operating expenses		221,005			213,222			433,307			414,092

Operating income	$	13,086		$	13,279		$	11,483		$	2,695

Adjusted EBITDA	$	18,113		$	18,962		$	21,493		$	14,580

ASIA PACIFIC
Revenue:
Operating revenue	$	228,443		$	204,513		$	418,343		$	390,876
Equity (losses) earnings		(124	)		62			(9	)		114

Total segment revenue		228,319			204,575			418,334			390,990
Gross contract costs¹		(23,378	)		(21,060	)		(45,375	)		(45,879	)

Total segment fee revenue		204,941			183,515			372,959			345,111

Operating expenses:
Compensation, operating and administrative expenses		211,848			188,058			396,297			364,418
Depreciation and amortization		3,124			3,326			6,252			6,414

Total segment operating expenses		214,972			191,384			402,549			370,832
Gross contract costs¹		(23,378	)		(21,060	)		(45,375	)		(45,879	)

Total fee-based segment operating expenses		191,594			170,324			357,174			324,953

Operating income	$	13,347		$	13,191		$	15,785		$	20,158

Adjusted EBITDA	$	16,471		$	16,517		$	22,037		$	26,572


	Three Months Ended June 30,					Six Months Ended June 30,
	2013		2012			2013		2012
LASALLE INVESTMENT MANAGEMENT
Revenue:
Operating revenue	$	61,302	$	59,112		$	121,018	$	126,644
Equity earnings		9,663		234			14,812		11,966

Total segment revenue		70,965		59,346			135,830		138,610
Operating expenses:
Compensation, operating and administrative expenses		50,781		48,782			101,889		100,488
Depreciation and amortization		476		457			992		943

Total segment operating expenses		51,257		49,239			102,881		101,431

Operating income	$	19,708	$	10,107		$	32,949	$	37,179

Adjusted EBITDA	$	20,184	$	10,564		$	33,941	$	38,122



SEGMENT RECONCILING ITEMS:
Total segment revenue	$	998,459	$	921,294		$	1,859,929	$	1,746,437
Reclassification of equity earnings (losses)		9,076		(47	)		14,558		11,802

Total revenue	$	989,383	$	921,341		$	1,845,371	$	1,734,635

Total operating expenses before restructuring charges		916,959		846,655			1,749,680		1,636,426

Operating income before restructuring charges	$	72,424	$	74,686		$	95,691	$	98,209

Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED

Consolidated Balance Sheets

June 30, 2013, December 31, 2012 and June 30, 2012

(in thousands)


	June 30, 2013			December 31,			June 30, 2012
	(Unaudited)			2012			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	121,851		$	152,159		$	115,499
Trade receivables, net of allowances		911,425			996,681			819,946
Notes and other receivables		95,543			101,952			92,663
Warehouse receivables		98,213			144,257			—
Prepaid expenses		64,463			53,165			54,752
Deferred tax assets, net		53,257			50,831			48,525
Other		11,719			16,484			24,081

Total current assets		1,356,471			1,515,529			1,155,466

Property and equipment, net of accumulated depreciation		252,247			269,338			239,202
Goodwill, with indefinite useful lives		1,836,981			1,853,761			1,766,978
Identified intangibles, with finite useful lives, net of accumulated amortization		41,342			45,932			45,762
Investments in real estate ventures		265,202			268,107			210,799
Long-term receivables		76,825			58,881			51,212
Deferred tax assets, net		187,811			197,892			197,718
Other		157,824			142,059			126,934

Total assets	$	4,174,703		$	4,351,499		$	3,794,071

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	401,052		$	497,817		$	365,254
Accrued compensation		410,032			685,718			393,344
Short-term borrowings		50,724			32,233			19,598
Deferred tax liabilities, net		10,113			10,113			6,095
Deferred income		79,459			76,152			83,132
Deferred business acquisition obligations		75,054			105,772			31,611
Warehouse facility		98,213			144,257			—
Other		112,553			109,909			92,218

Total current liabilities		1,237,200			1,661,971			991,252

Noncurrent liabilities:
Credit facilities		479,000			169,000			619,000
Long-term senior notes		275,000			275,000			—
Deferred tax liabilities, net		3,106			3,106			7,646
Deferred compensation		89,370			75,320			67,929
Pension liabilities		64			5,281			15,348
Deferred business acquisition obligations		75,550			107,661			246,531
Minority shareholder redemption liability		19,838			19,489			18,692
Other		62,272			75,415			72,962

Total liabilities		2,241,400			2,392,243			2,039,360

Company shareholders’ equity:
Common stock, $.01 par value per share, 100,000,000 shares authorized; 44,119,690, 44,054,042 and 43,778,163 shares issued and outstanding as of June 30, 2013, December 31, 2012 and June 30, 2012, respectively		441			441			438
Additional paid-in capital		945,675			932,255			927,020
Retained earnings		1,066,794			1,017,128			869,670
Shares held in trust		(7,558	)		(7,587	)		(7,151	)
Accumulated other comprehensive (loss) income		(78,807	)		8,946			(40,090	)

Total Company shareholders’ equity		1,926,545			1,951,183			1,749,887
Noncontrolling interest		6,758			8,073			4,824

Total equity		1,933,303			1,959,256			1,754,711

Total liabilities and equity	$	4,174,703		$	4,351,499		$	3,794,071

Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED

Summarized Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2013 and 2012

(in thousands)

(Unaudited)


	Six Months Ended June 30,
	2013			2012
Cash used in operating activities	$	(244,558	)	$	(122,618	)
Cash used in investing activities		(62,761	)		(25,898	)
Cash provided by financing activities		277,011			79,561

Net decrease in cash and cash equivalents	$	(30,308	)		(68,955	)
Cash and cash equivalents, beginning of period		152,159			184,454

Cash and cash equivalents, end of period	$	121,851		$	115,499

Please reference attached financial statement notes.

JONES LANG LASALLE INCORPORATED

Financial Statement Notes

Consistent with U.S. GAAP (“GAAP”), gross contract vendor and subcontractor costs (“gross contract costs”) which are managed on certain client assignments in the Property & Facility Management and Project & Development Services business lines are presented on a gross basis in both revenue and operating expenses. Gross contract costs are excluded from revenue and operating expenses in determining “fee revenue” and “fee-based operating expenses”, respectively. Excluding these costs from revenue and operating expenses more accurately reflects how the firm manages its expense base and its operating margins. Adjusted operating income excludes the impact of restructuring and acquisition charges and intangible amortization related to the King Sturge acquisition. “Adjusted operating income margin” is calculated by dividing adjusted operating income by fee revenue. Below are reconciliations of revenue and operating expenses to fee revenue and fee-based operating expenses, as well as adjusted operating income margin calculations, for the three and six months ended June 30, 2013, and 2012.


	Three Months Ended						Six Months Ended
	June 30,						June 30,
($ in millions)	2013			2012			2013			2012
Revenue	$	989.4		$	921.3		$	1,845.4		$	1,734.7
Gross contract costs		(81.1	)		(69.1	)		(156.6	)		(137.6	)

Fee revenue	$	908.3		$	852.2		$	1,688.8		$	1,597.1

Operating expenses	$	923.6		$	863.2		$	1,759.5		$	1,662.0
Gross contract costs		(81.1	)		(69.1	)		(156.6	)		(137.6	)

Fee-based operating expenses	$	842.5		$	794.1		$	1,602.9		$	1,524.4

Operating income	$	65.8		$	58.1		$	85.9		$	72.7

Add:
Restructuring and acquisition charges		6.6			16.6			9.8			25.6
King Sturge intangible amortization		0.6			1.6			1.1			3.8

Adjusted operating income	$	73.0		$	76.3		$	96.8		$	102.1

Adjusted operating income margin		8.0	%		9.0	%		5.7	%		6.4	%

Charges excluded from GAAP net income attributable to common shareholders to arrive at adjusted net income for the three and six months ended June 30, 2013, and June 30, 2012, are restructuring and acquisition charges and intangible amortization related to the recent King Sturge acquisition. Below are reconciliations of GAAP net income attributable to common shareholders to adjusted net income and calculations of earnings per share (“EPS”) for each net income total:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
($ in millions, except per share data)	2013		2012		2013		2012
GAAP net income attributable to common shareholders	$	46.3	$	37.2	$	59.4	$	51.2
Shares (in 000s)		45,141		44,847		45,091		44,726

GAAP diluted earnings per share	$	1.03	$	0.83	$	1.32	$	1.14

GAAP net income attributable to common shareholders	$	46.3	$	37.2	$	59.4	$	51.2
Restructuring and acquisition charges, net		5.0		12.4		7.4		19.1
Intangible amortization, net		0.4		1.2		0.8		2.8

Adjusted net income	$	51.7	$	50.8	$	67.6	$	73.1
Shares (in 000s)		45,141		44,847		45,091		44,726

Adjusted diluted earnings per share	$	1.15	$	1.13	$	1.50	$	1.63

Adjusted EBITDA represents earnings before interest expense, net of interest income, income taxes, depreciation and amortization, adjusted for restructuring and acquisition charges. Although adjusted EBITDA and EBITDA are non-GAAP financial measures, they are used extensively by management and are useful to investors and lenders as metrics for evaluating operating performance and liquidity. EBITDA is used in the calculations of certain covenants related to the firm’s revolving credit facility. However, adjusted EBITDA and EBITDA should not be considered as an alternative to net income determined in accordance with GAAP. Because adjusted EBITDA and EBITDA are not calculated under GAAP, the firm’s adjusted EBITDA and EBITDA may not be comparable to similarly titled measures used by other companies.

Below is a reconciliation of net income to EBITDA and adjusted EBITDA (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Net income	$	49,452	$	37,730	$	62,713	$	51,899
Add:
Interest expense, net of interest income		9,049		7,459		16,972		14,885
Provision for income taxes		16,397		12,846		20,794		17,671
Depreciation and amortization		20,174		19,962		39,254		39,621

EBITDA	$	95,072	$	77,997	$	139,733	$	124,076

Add:
Restructuring and acquisition charges		6,602		16,604		9,770		25,556

Adjusted EBITDA	$	101,674	$	94,601	$	149,503	$	149,632

Restructuring and acquisition charges are excluded from segment operating results, although they are included for consolidated reporting. For purposes of segment operating results, the allocation of restructuring charges to the segments has been determined not to be meaningful to investors, so the performance of segment results has been evaluated without allocation of these charges.

5.	Intangible amortization from the second-quarter 2011 King Sturge acquisition is included in depreciation and amortization in the firm’s consolidated results, as well as in EMEA’s segment results, but has been excluded from adjusted operating income and adjusted net income.

Each geographic region offers the firm’s full range of Real Estate Services businesses consisting primarily of tenant representation and agency leasing; capital markets; property management and facilities management; project and development services; and advisory, consulting and valuations services. The Investment Management segment provides investment management services to institutional investors and high-net-worth individuals.

7.	The consolidated statements of cash flows are presented in summarized form. For complete consolidated statements of cash flows, please refer to the firm’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, to be filed with the Securities and Exchange Commission shortly.

8.	EMEA refers to Europe, Middle East and Africa. MENA refers to Middle East and North Africa. Greater China includes China, Hong Kong, Macau and Taiwan. Southeast Asia refers to Singapore, Indonesia, Philippines, Thailand and Vietnam. The BRIC countries include Brazil, Russia, India and China.

9.	Certain prior year amounts have been reclassified to conform to the current presentation.

10.	All percentage variances have been shown as calculated on a local currency basis.

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