Jones Lang Lasalle Incorporated · NYSE:JLL

Jones Lang Lasalle — Q2 2019 Earnings Presentation

25 slides from Jones Lang Lasalle's earnings presentation, Aug 6, 2019

  1. Slide 1: Supplemental Information: 2nd Quarter 2019 Earnings

    Supplemental Information 2nd Quarter 2019 Earnings August 6, 2019

  2. Slide 2: Global real estate market overview

    Global real estate market overview 2019 Global real estate outlook ▪ Stable fundamentals supported by economic growth, significant capital availability and low interest rates ▪ Softer investment volumes expected following record 2018 given continued investor discipline ▪ Continued robust leasing dem

  3. Slide 3: Global real estate market performance & outlook

    Global real estate market performance & outlook Americas EMEA APAC Global Gross Leasing Volumes (square footage) Q2 2019 (10)% 1% (27)% (10)% YTD 2019 (3)% 3% (23)% (5)% FY 2019 Flat to (5%) Flat to (5%) (15% - 20%) (5)% Outlook Direct Commercial Real Estate Investment Sales Volumes ($) Q2 2019 (3)%

  4. Slide 4: Q2 2019 consolidated summary financial results

    Q2 2019 consolidated summary financial results Consolidated Real Estate Services LaSalle Fee Revenue ($M) $1,630 $1,494 $1,507 $1,408 $123 $86 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Adj EBITDA ($M) $227 $194 $185 $169 $42 $24 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 33.7% Adj EBITDA

  5. Slide 5: Consolidated adjusted EBITDA margin performance

    Consolidated adjusted EBITDA margin performance LaSalle Positive RES organic growth Investments in technology Another excellent quarter boosted by Strong Americas leasing strong incentive fees & equity performance and disciplined cost Strategic investments to drive future earnings management organic

  6. Slide 6: Balance sheet

    Balance sheet Highlights Balance Sheet ($ in millions) Q2 2019 Q2 2018 Cash and Cash Senior Notes $411 $293 Equivalents €350M 10 & 12 year Short Term Borrowings 119 93 Maturity - 2027 & 2029 $275M 10 year Credit Facility (1) 500 415 Maturity - 2022 Net Bank Debt $208 $215 $2.75B Credit Facility Long

  7. Slide 7: Segment Details

    Segment Details © 2019 Jones Lang LaSalle IP, Inc. All rights reserved.

  8. Slide 8: Q2 2019 Real Estate Services summary results

    Q2 2019 Real Estate Services summary results Americas EMEA Asia Pacific $864 Fee Revenue ($M) $768 $380 $388 $263 $251 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Adj EBITDA ($M) $142 $128 $34 $30 $10 $11 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Adj EBITDA Margin 16.5% 16.7% 12.8% 12.0% 2

  9. Slide 9: Q2 2019 Real Estate Services fee revenue

    Q2 2019 Real Estate Services fee revenue ($ in millions; % change over Q2 2018) Americas EMEA Asia Pacific Total RES % Change % Change % Change % Change USD LC USD LC USD LC USD LC Leasing $480 16% 16% $64 (8)% (3)% $62 13% 17% $606 13% 14% Capital Markets $125 7% 8% $73 (13)% (8)% $43 —% 5% $241 (1

  10. Slide 10: Q2 2019 fee revenue growth drivers

    Q2 2019 fee revenue growth drivers Organic M&A YoY Growth Currency Growth Contribution USD Impact LC LC Americas 12% 11% 1% —% EMEA (2)% 3% —% (5)% APAC 5% 9% 1% (5)% LaSalle 44% 40% 7% (3)% Consolidated 9% 11% 1% (3)% Notes: • Refer to pages 20 - 23 for definitions and reconciliations of non-GAAP f

  11. Slide 11: LaSalle Investment Management results

    LaSalle Investment Management results Financials Q2 2019 Highlights • Record advisory fees strengthen Fee Revenue ($M) $123 annuity fee revenue base $86 • Strong private equity raise of $2.7B Q2 2019 Q2 2018 supports future AUM growth Assets Under Management By geography & type Adj EBITDA ($M) $42 $

  12. Slide 12: Appendix

    Appendix © 2019 Jones Lang LaSalle IP, Inc. All rights reserved.

  13. Slide 13: YTD consolidated summary financial results

    YTD consolidated summary financial results Consolidated Real Estate Services LaSalle Fee Revenue ($M) $2,949 $2,775 $2,732 $2,576 $217 $199 YTD 2019 YTD 2018 YTD 2019 YTD 2018 YTD 2019 YTD 2018 Adj EBITDA ($M) $322 $301 $262 $235 $60 $67 YTD 2019 YTD 2018 YTD 2019 YTD 2018 YTD 2019 YTD 2018 Adj EBIT

  14. Slide 14: YTD Real Estate Services summary results

    YTD Real Estate Services summary results Americas EMEA Asia Pacific $1,575 Fee Revenue ($M) $1,392 $696 $739 $461 $446 YTD 2019 YTD 2018 YTD 2019 YTD 2018 YTD 2019 YTD 2018 Adj EBITDA ($M) $230 $196 $41 $35 $4 $(9) YTD 2019 YTD 2018 YTD 2019 YTD 2018 YTD 2019 YTD 2018 Adj EBITDA Margin 14.6% 14.1% 8

  15. Slide 15: YTD 2019 Real Estate Services fee revenue

    YTD 2019 Real Estate Services fee revenue ($ in millions; % change over YTD 2018) Americas EMEA Asia Pacific Total RES % Change % Change % Change % Change USD LC USD LC USD LC USD LC Leasing $857 21% 22% $115 (10)% (4)% $96 6% 11% $1,068 16% 17% Capital Markets $224 —% —% $133 (21)% (16)% $69 (5)% —

  16. Slide 16: YTD 2019 fee revenue growth drivers

    YTD 2019 fee revenue growth drivers Organic M&A YoY Growth Currency Growth Contribution USD Impact LC LC Americas 13% 13% 1% (1)% EMEA (6)% —% —% (6)% APAC 3% 9% —% (5)% LaSalle 9% 6% 6% (3)% Consolidated 6% 8% 1% (3)% Notes: • Refer to pages 20 - 23 for definitions and reconciliations of non-GAAP f

  17. Slide 17: YTD 2019 Real Estate Services GAAP revenue

    YTD 2019 Real Estate Services GAAP revenue ($ in millions; % change over YTD 2018) Americas EMEA Asia Pacific Total RES % Change % Change % Change % Change USD LC USD LC USD LC USD LC Leasing $882 21% 22% $118 (10)% (5)% $102 6% 11% $1,102 15% 17% Capital Markets $230 —% 1% $143 (20)% (15)% $78 (6)%

  18. Slide 18: Q2 2019 select business wins

    Q2 2019 select business wins Corporate Solutions Capital Markets Leasing Ivanhoe Cambridge/Hines/ City of Philadelphia GLP U.S. Portfolio McCafferty, Denver NatWest Markets, Stamford, Americas Connecticut Seawall Portfolio, Baltimore Equity Commonwealth, Walton Street/Clarius Partners/ Bellevue, Was

  19. Slide 19: Q2 2019 Real Estate Services GAAP revenue

    Q2 2019 Real Estate Services GAAP revenue ($ in millions; % change over Q2 2018) Americas EMEA Asia Pacific Total RES % Change % Change % Change % Change USD LC USD LC USD LC USD LC Leasing $492 16% 17% $66 (10)% (5)% $66 14% 19% $624 13% 14% Capital Markets $130 10% 10% $79 (13)% (8)% $48 (4)% —% $

  20. Slide 20: Fee revenue / fee-based operating expenses reconciliation

    Fee revenue / fee-based operating expenses reconciliation Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2019 2018 2019 2018 Revenue $ 4,266.5 $ 3,903.7 $ 8,087.1 $ 7,458.9 Reimbursements (1,918.3) (1,740.4) (3,777.3) (3,404.5) Revenue before reimbursements 2,348.2 2,163.3 4,3

  21. Slide 21: Reconciliation of GAAP Net Income to Adjusted Net Income and Diluted EPS

    Reconciliation of GAAP Net Income to Adjusted Net Income and Diluted Earnings Per Share Three Months Ended June 30, Six Months Ended June 30, ($ in millions except per share data) 2019 2018 2019 2018 GAAP net income attributable to common shareholders $ 110.5 $ 107.8 $ 131.8 $ 148.1 Shares (in 000s)

  22. Slide 22: Reconciliation of GAAP Net Income to Adjusted EBITDA

    Reconciliation of GAAP Net Income attributable to common shareholders to Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2019 2018 2019 2018 GAAP net income attributable to common shareholders $ 110.5 $ 107.8 $ 131.8 $ 148.1 Interest expense, net of interest inc

  23. Slide 23: Non-GAAP Measures

    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 stakeholder

  24. Slide 24: Cautionary note regarding forward-looking statements

    Cautionary note regarding forward-looking statements Statements in this news release regarding, among other things, future financial results and performance, achievements, plans, objectives and dividend payments may be considered forward-looking statements within the meaning of the Private Securitie

  25. Slide 25: © 2019 Jones Lang LaSalle IP, Inc. All rights reserved.

    © 2019 Jones Lang LaSalle IP, Inc. All rights reserved.

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