Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q3 2022 Earnings Presentation
28 slides from Jones Lang Lasalle's earnings presentation, Nov 2, 2022
Slide 1: Earnings Presentation Third Quarter 2022
Earnings Presentation Third Quarter 2022 November 2, 2022
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements Statements in this presentation regarding, among other things, future financial results and performance, achievements, plans, objectives and shares repurchases may be considered forward-looking statements within the meaning of the Private Securiti
Slide 3: Upcoming Investor Briefing
Please join us for JLL’s upcoming Investor Briefing Wednesday, November 16th New York, NY (Midtown) Registration & breakfast: 8:00am – 9:00am EST Event: 9:00am – 12:00pm EST Lunch: 12:00pm – 1:00pm EST Please contact JLLInvestorRelations@jll.com for additional information and to register for the eve
Slide 4: Third quarter highlights
Third quarter highlights
Slide 5: Capital markets industry highlights
Capital markets industry highlights Real estate investment volumes by region, 2007 – 2022 YTD Real estate investment volumes by sector, 2021 YTD vs 2022 YTD $1,400 Residential 9% $1,200 Office -3% $1,000 $886 US$ Billions $814 US$ Billions Industrial -7% $800 $779 Retail 34% $600 $504 Hotels
Slide 6: Capital market industry trends
Capital market industry trends Global fundraising for closed-end funds, 2006 – 2022 YTD Dry powder in closed-end funds, 2006 – 2022 YTD $250 $450 $406 $200 US$ Billions US$ Billions $300 $150 $131 $102 $105 $100 $150 $50 $0 $0 Investment volume change YoY by region, Q1 2020 – Q3 2022 Share of invest
Slide 7: Office leasing industry highlights
Office leasing industry highlights Global office leasing volumes by region, 2007 – 2022 YTD Rental growth for prime office assets - quarterly 45 6% $41 40 4% Rental change (q-o-q %) 35 2% 30 $27 0% Millions sqm 25 $22 $20 -2% 20 -4% 15 10 -6% 5 -8% 0 -10% Americas EMEA Asia Pacific Third Quarter Hig
Slide 8: Industrial leasing industry highlights
Industrial leasing industry highlights U.S. France, Germany, UK Asia-Pacific Net Absorption Gross Leasing Net Absorption 14 14 14 12 12 12 millions sq m 10 10 10 8 8 8 6 6 6 4 4 4 2 2 2 0 0 0 5-year Q3 Avg Q3 2021 Q3 2022 5-year Q3 Avg Q3 2021 Q3 2022 5-year Q3 Avg Q3 2021 Q3 2022 (2017-2021) (2017-
Slide 9: Consolidated financials
Consolidated financials
Slide 10: Consolidated third quarter 2022 financial results
Consolidated third quarter 2022 financial results Margins in local currency; growth rates represent % change over three months ended Q3 2021 Q3 2022 Q3 2021 ’22/’21 % Chg. USD ’22/’21 % Chg. LC Revenue $5,178M $4,889M 6% 10% Fee Revenue $2,049M $2,051M -- 4% Operating Income $203M $293M (31)
Slide 11: Business segments results
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Slide 12: Third quarter 2022 financial results – Business segments
Third quarter 2022 financial results – Business segments $M. Growth rates and margins in local currency; growth rates represent % change over three months ended Q3 2021 Revenue Fee Revenue Adjusted EBITDA Adjusted EBITDA Margin Markets $1,112 $848 $132 15.8% Advisory 6% 4% (8)% 200 bps Capit
Slide 13: Markets Advisory
Markets Advisory Margins in local currency; growth rates represent % change over three months ended Q3 2021 Fee Revenue Adjusted EBITDA $M $837 $848 $M, % of fee revenue $32 $29 $116 $123 $149 $689 $696 $132 17.8% 15.8% Q3 2021 Q3 2022 Q3 2021 Q3 2022 Leasing Property Management Advisory & Consultin
Slide 14: Capital Markets
Capital Markets Margins in local currency; growth rates represent % change over three months ended Q3 2021 Fee Revenue Adjusted EBITDA $M $639 $M, % of fee revenue $38 $579 $138 $41 $84 $86 $83 $517 $452 21.7% 14.3% Q3 2021 Q3 2022 Q3 2021 Q3 2022 Third Quarter Highlights • Fee revenue decline of 5%
Slide 15: Work Dynamics
Work Dynamics Margins in local currency; growth rates represent % change over three months ended Q3 2021 Fee Revenue Adjusted EBITDA $M $M, % of fee revenue $453 $53 $417 $59 $63 $38 $210 $194 $160 $184 9.0% 10.9% Q3 2021 Q3 2022 Q3 2021 Q3 2022 Workplace Management Project Management Portfolio Serv
Slide 16: JLL Technologies
JLL Technologies Margins in local currency; growth rates represent % change over three months ended Q3 2021 Fee Revenue Adjusted EBITDA $M $M, % of fee revenue $53 $34 (31.1%) (30.1%) ($11) ($15) Q3 2021 Q3 2022 Q3 2021 Q3 2022 Third Quarter Highlights • Fee revenue grew 54% LC (53% USD), including
Slide 17: LaSalle
LaSalle Margins in local currency; growth rates represent % change over three months ended Q3 2021 Fee Revenue Adjusted EBITDA $M $M, % of fee revenue $123 $22 $116 $12 $8 $9 $37 $23 $93 $95 30.3% 19.0% Q3 2021 Q3 2022 Q3 2021 Q3 2022 Advisory Fees Transaction Fees Incentive Fees Third Quarter Highl
Slide 18: Capital allocation and balance sheet
Capital allocation and balance sheet
Slide 19: Debt and leverage
Debt and leverage Highlights: • Strong balance sheet with ample liquidity provides operational flexibility • Increased credit facility capacity by $600 million Investment Grade Credit Ratings • Retired $275 million Senior Notes due November 2022 with credit facility Moody’s: Baa1 S&P: BBB+ • Net deb
Slide 20: Return of capital to shareholders
Return of capital to shareholders $M $601 $343 $100 $38 $43 2018 2019 2020 2021 2022 YTD Dividend Share Repurchase Highlights • Strong balance sheet provides flexibility to invest in the business while also returning more than half of free cash flow to shareholders through share repurchases since th
Slide 21: Supplemental materials & non-GAAP reconciliations
Supplemental materials & non-GAAP reconciliations
Slide 22: Consolidated YTD 2022 financial results
Consolidated YTD 2022 financial results Margins in local currency; growth rates represent % change over nine months ended Q3 2021 Q3 2022 YTD Q3 2021 YTD ’22/’21 % Chg. USD ’22/’21 % Chg. LC Revenue $15,257M $13,421M 14% 17% Fee Revenue $6,088M $5,269M 16% 19% Operating Income $613M $598M
Slide 23: YTD 2022 financial results – Business segments
YTD 2022 financial results – Business segments $M. Growth rates and margins in local currency; growth rates represent % change over nine months ended Q3 2021 Revenue Fee Revenue Adjusted EBITDA Adjusted EBITDA Margin Markets $3,229 $2,445 $377 15.5% Advisory 17% 19% 18% 20 bps Capital $1,880
Slide 24: Fee revenue / fee-based operating expenses reconciliation
Fee revenue / fee-based operating expenses reconciliation Three Months Ended Sep 30 Nine Months Ended Sep 30 ($M) 2022 2021 2022 2021 Revenue $5,177.5 $4,889.2 $15,257.3 $13,421.3 Gross contract costs (3,123.7) (2,810.5) (9,156.6) (8,108.4) Net non-cash MSR and mortgage banking derivative activity (
Slide 25: Reconciliation of net income to adjusted net income and adjusted diluted EPS
Reconciliation of net income to adjusted net income and adjusted diluted earnings per share Three Months Ended Sep 30 Nine Months Ended Sep 30 ($M except per share data) 2022 2021 2022 2021 Net income attributable to common shareholders $140.2 $237.2 $497.7 $540.2 Shares (in 000s) 48,629 51,944 49,7
Slide 26: Reconciliation of net income to adjusted EBITDA
Reconciliation of net income attributable to common shareholders to adjusted EBITDA Three Months Ended Sep 30 Nine Months Ended Sep 30 ($M) 2022 2021 2022 2021 Net income attributable to common shareholders $140.2 $237.2 $479.7 $540.2 Interest expense, net of interest income 23.2 9.6 49.1 30.6 Provi
Slide 27: 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 stakeholders
Slide 28: Non-GAAP measures (cont.)
Non-GAAP measures (cont.) 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 headcou