Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q1 2018 Earnings Presentation
27 slides from Jones Lang Lasalle's earnings presentation, May 8, 2018
Slide 1: Supplemental Information: 1st Quarter 2018 Earnings Call
Supplemental Information 1st Quarter 2018 Earnings Call May 8, 2018
Slide 2: Global market overview
Global market overview Q1 2018 Macro-economic operating environment ▪ Global economic growth outlook remains positive ▪ U.S. to lead global upturn with strong sentiment and despite recent equity market volatility and increasing domestic demand boosted by tax stimulus protectionist rhetoric ▪ Low int
Slide 3: Consolidated financial results
Consolidated financial results Q1 2018 Highlights ▪ Healthy consolidated fee revenue growth, primarily organic $1.3B ▪ Real Estate Services fee revenue reflects strength in EMEA Capital Markets and Fee Project & Development Services as well as Americas Property & Facility revenue Management ▪ LaSall
Slide 4: Q1 2018 Real Estate Services fee revenue
Q1 2018 Real Estate Services fee revenue ($ in millions; % change over QTD Q1 2017) Americas EMEA Asia Pacific Total RES % Change % Change % Change % Change USD LC USD LC USD LC USD LC Leasing $293.3 1% 1% $57.0 20% 5% $34.8 18% 13% $385.1 5% 3% Capital Markets $108.2 7% 6% $84.0 50% 32% $29.0 2% (1
Slide 5: JLL Capital Markets & Leasing performance
JLL Capital Markets & Leasing performance QUARTERLY FULL YEAR Q1 2018 2018 Actual Research Current Forecast Prior Forecast Capital Markets JLL Revenue Market Volume Market Volume Market Volume USD USD USD USD Americas 7% 18% (12)% (15)% EMEA 50% Flat (10)% (5)% Asia Pacific 2% 34% 5% 5% Total 19% ó
Slide 6: Consolidated adjusted EBITDA margin performance
Consolidated adjusted EBITDA margin performance LaSalle Positive organic Technology M&A Other contribution Increased incentive EMEA transactional fees & equity Continued planned performance & earnings. Expanding Americas Corporate strategic Minimal contribution Various discrete advisory margins Solu
Slide 7: Balance sheet & cash flow
Balance sheet & cash flow Cash Use ($ in millions) Q1 2018 Q1 2017 Highlights M&A (Including deferred) (1) $20 $27 ▪ $478M net debt reduction Investment Grade (7) (1) Ratings driven by improved working Co-investment (2) capital 42 32 Moody’s: Baa1 (Stable) Capital Expenditures (3) S&P: BBB (Stable)
Slide 8: Segment Details
Segment Details © 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 9: Americas financial summary
Americas financial summary Q1 2018 Highlights ▪ Revenue growth led by Property & Facility Management $624M ▪ Strong Property & Facility Management performance in the U.S. due to Fee commencement of new Corporate Solutions contracts secured in 2017 revenue ▪ Capital Markets growth driven by M&A advis
Slide 10: EMEA financial summary
EMEA financial summary Q1 2018 Highlights ▪ Broad-based organic revenue growth $350M ▪ Continued transactional revenue momentum; notable Capital Markets performance Fee in UK, Germany and France revenue ▪ Strength in Project & Development Services from Tetris fit-out business ▪ Adjusted EBITDA margi
Slide 11: Asia Pacific financial summary
Asia Pacific financial summary Q1 2018 Highlights ▪ Revenue growth led by Leasing and Project & Development Services $194M ▪ Healthy Leasing performance in China and Japan; balanced performance across Fee the region revenue ▪ Project & Development Services strength, particularly in Australia ▪ Adjus
Slide 12: LaSalle Investment Management results
LaSalle Investment Management results Q1 2018 Highlights Q1 2018 AUM Highlights $113M $42M 37.4% $59B $0.7B $8B Revenue Adjusted Adjusted AUM Capital Dry EBITDA EBITDA raised powder margin ▪ Strong quarter driven by outsized incentive fees & Assets Under Management By geography & type equity earning
Slide 13: 2018 Operating framework
2018 Operating framework 2018 JLL Priorities ▪ Leverage Corporate Solutions platform to drive profitable growth ▪ Broaden Capital Markets capabilities across capital stack ▪ Drive differentiation through technology ▪ Focus capital allocation strategy on transformational growth ▪ Continue working cap
Slide 14: Appendix
Appendix © 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 15: Currency overview
Currency overview Q1 2018 Macro currency review ▪ British pound: appreciation given stability post-Brexit vote ▪ Euro: strengthened and remained broadly stable ▪ Australian dollar: relatively stable year over year ▪ Japanese yen: modest appreciation moving into Q1 2018 Q1 2018 Currency EPS impact Cu
Slide 16: Prime Offices - Capital Value Clock
Prime Offices - Capital Value Clock The JLL Property ClocksSM Notes: • Based on notional capital values for Grade A space in CBD or equivalent 16 • Source: JLL Research, April 2018. The JLL Property Clocks SM
Slide 17: Prime Offices - Rental Clock
Prime Offices - Rental Clock The JLL Property ClocksSM Notes: • Based on notional capital values for Grade A space in CBD or equivalent 17 • Source: JLL Research, April 2018. The JLL Property Clocks SM
Slide 18: Q1 2018 business wins
Q1 2018 business wins Corporate Solutions Capital Markets Leasing & Management Phalen Development Portfolio, Prudential Plaza, Chicago Tracy, CA Precedent Office Park, Americas Royal Philips Health Tech Indianapolis Prologis, Harrisburg PA Optima Sonoran Village, Colony Northstar, Jacksonville Phoen
Slide 19: Q1 2018 fee revenue growth drivers
Q1 2018 fee revenue growth drivers YoY Growth M&A Organic Currency USD Contribution Growth Impact Americas 5% —% 5% —% EMEA 30% —% 15% 15% APAC 8% —% 4% 4% LaSalle 37% —% 29% 8% Consolidated 14% —% 9% 5% Notes: • Refer to pages 21-25 for definitions and reconciliations of non-GAAP financial measures
Slide 20: Q1 2018 Real Estate Services GAAP revenue
Q1 2018 Real Estate Services GAAP revenue ($ in millions; % change over QTD Q1 2017) Americas EMEA Asia Pacific Total RES % Change % Change % Change % Change USD LC USD LC USD LC USD LC Leasing $304.5 2% 2% $58.9 21% 6% $37.8 24% 19% $401.2 6% 4% Capital Markets $111.0 12% 12% $89.3 49% 31% $32.4 9%
Slide 21: Fee revenue / fee-based operating expenses reconciliation
Fee revenue / fee-based operating expenses reconciliation Three Months Ended March 31, ($ in millions) 2018 2017 Revenue $ 3,555.2 $ 3,117.7 Reimbursements (1,664.1) (1,501.4) Revenue before reimbursements 1,891.1 1,616.3 Gross contract costs (606.9) (495.0) Net non-cash MSR and mortgage banking (2.
Slide 22: 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 March 31, ($ in millions except per share data) 2018 2017 GAAP net income attributable to common shareholders $ 40.3 $ 7.2 Shares (in 000s) 45,905 45,689 GAAP diluted earnings per share $ 0.88
Slide 23: Reconciliation of GAAP Net Income to Adjusted EBITDA
Reconciliation of GAAP Net Income attributable to common shareholders to Adjusted EBITDA Three Months Ended March 31, ($ in millions) 2018 2017 GAAP net income attributable to common shareholders $ 40.3 $ 7.2 Interest expense, net of interest income 13.8 13.0 Provision for income taxes 13.5 1.3 Depr
Slide 24: 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
Slide 25: Non-GAAP Measures
Non-GAAP Measures 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
Slide 26: 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 and objectives, and dividend payments may be considered forward-looking statements within the meaning of the Private Secur
Slide 27: © 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.