Jones Lang Lasalle Incorporated · NYSE:JLL

Jones Lang Lasalle — Investor Day (November 2022)

123 slides from Jones Lang Lasalle's investor day presentation, Nov 16, 2022

Slide 1: Investor Briefing
Investor Briefing November 16, 2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, with respect to the future financial or business performance, strategies, or expectations of Jones Lang LaSalle Incorporated (“JLL”). Forward-lookin
Slide 3: Agenda
Agenda Approx. times 8:00 – 9:00 Registration & continental breakfast 9:00 – 9:05 Welcome & safe harbor statement Scott Einberger 9:05 – 9:30 A compelling growth story & investment Christian Ulbrich 9:30 – 9:50 JLL’s technology strategy – a unique accelerator Mihir Shah Work Dynamics: A differentiat
Slide 4: A compelling growth story & investment
A compelling growth story & investment Christian Ulbrich CEO
Slide 5: A global professional services firm specializing in real estate and investment management
J L L T O D AY A global professional services firm specializing in real estate and investment management An industry leader with global scale Fortune 250 company Origin dates back to 1760; more than 250 years of experience in the real estate industry An industry leader in all five business segments
Slide 6: What you will hear today
What you will hear today Strong track record of performance; on track to exceed Beyond 2025 1. Performance goals laid out at our 2017 Investor Day 2. Importance of Technology Insight into our technology strategy and a roadmap for the future 3. Differentiation Factors How JLL is differentiated from p
Slide 7: JLL is driving growth and achieving financial targets
AGENDA JLL is driving growth and achieving financial targets • Building on a strong platform • Growth and margin drivers • How JLL is differentiated • Confident for the future 7 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 8: Industry tailwinds provide a foundation for future growth
Industry tailwinds provide a foundation for future growth 1 2 3 4 5 Rising capital Tech-driven Growth in Increased allocations fourth industrial Sustainability outsourcing urbanization in real estate revolution ~70% of corporations Real Estate Cities house 55% Transformation Reducing carbon manage R
Slide 9: Our Beyond Strategy has created a more agile, close-knit organization
Our Beyond Strategy has created a more agile, close-knit organization Enhanced Strengthened One JLL transparency global collaboration Agile global Business line Across the business performance enterprise 9 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 10: On track to exceed consolidated 2025 financial targets presented in December 2017
On track to exceed consolidated 2025 financial targets presented in December 2017 2025 Targets Presented On Track Progress in December 2017 Consolidated Fee Revenue growth 9%  9.6% 2016-2021 CAGR Adjusted EBITDA Margin 12-14%  18.7%1 2021 Cash from Operations $1B+  $972M 2021 Net Debt / Adjusted
Slide 11: JLL is driving growth and achieving financial targets
AGENDA JLL is driving growth and achieving financial targets • Building on a strong platform • Growth and margin drivers • How JLL is differentiated • Confident for the future 11 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 12: Industry tailwinds provide a foundation for future growth
Industry tailwinds provide a foundation for future growth 1 2 3 4 5 Workplace trends More capital Larger more Technology is Sustainability as are accelerating available than concentrated target transforming the a commercial outsourcing institutional-grade markets commercial real estate opportunity a
Slide 13: CRE technology strategy is top of mind for our clients
CRE technology strategy is top of mind for our clients 4 Technology is 78% 99% transforming the commercial real estate industry Companies plan to Indicate they will need incorporate CRE tech into technology partners next year Drives Fee Revenue Growth and Margin their portfolios by 2025 to manage th
Slide 14: Green buildings result in higher rental rates for clients
Green buildings result in higher rental rates for clients 5 Rental 90% Premiums of the built environment will need to on Green Buildings (1) be upgraded over the next 25 years Sustainability as a commercial opportunity Hong Kong 7% - 28% Mumbai 7% - 20% Drives Fee Revenue Growth Seoul 7% - 22% Singa
Slide 15: Industry tailwinds provide a foundation for future growth
Industry tailwinds provide a foundation for future growth 1 2 3 4 5 Rising capital Tech-driven Growth in Increased allocations fourth industrial Sustainability outsourcing urbanization in real estate revolution ~70% of corporations Real Estate Cities house 55% Transformation Reducing carbon manage R
Slide 16: JLL is driving growth and achieving financial targets
AGENDA JLL is driving growth and achieving financial targets • Building on a strong platform • Growth and margin drivers • How JLL is differentiated • Confident for the future 16 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 17: JLL is differentiated in a highly fragmented market
JLL is differentiated in a highly fragmented market Highly Fragmented Market JLL Differentiation Factors Rest of Technology the industry Data Industry Knowledge Top 3 firms 17 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 18: We employ a highly selective acquisition strategy
We employ a highly selective acquisition strategy Highly Selective Two Key Acquisitions Tick the Boxes Stringent screening process; only two July material transactions in the last six years 2019 Ability to grow organically creates a high Enhances capital markets services and client reach threshold f
Slide 19: JLL is driving growth and achieving financial targets
AGENDA JLL is driving growth and achieving financial targets • Building on a strong platform • Growth and margin drivers • How JLL is differentiated • Confident for the future 19 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 20: Focused on organic growth and margin expansion
Focused on organic growth and margin expansion Superior data and advice drives Expand product market share gains offering to existing Leverage global clients shared services Utilize platform technology to drive productivity 20 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 21: Multiple drivers to achieve 2025 financial targets
Multiple drivers to achieve 2025 financial targets Tailwinds Multiple secular trends driving growth JLL 2025 History of earnings growth outpacing Targets Track record revenue growth Top 2 player in a globally consolidating $10B – $11B Leading player in Fee Revenue industry Differentiators Scale expe
Slide 22: JLL’s technology strategy – a unique accelerator
JLL’s technology strategy – a unique accelerator Mihir Shah Co-CEO, JLL Technologies
Slide 23: Proptech presents a tremendous opportunity, JLL’s technology strategy is unique
AGENDA Proptech presents a tremendous opportunity, JLL’s technology strategy is unique and gaining momentum • The Proptech opportunity • Our unique technology strategy • Tech enabling JLL businesses • Building high growth high margin JLL tech business • Clear roadmap ahead, gaining momentum 23 | © 2
Slide 25: The CRE technology market is large and growing
The CRE technology market is large and growing ~8% $24B CAGR $17B $10B Products $7B $14B Services $10B 2022 2027 25 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved. Source: Verdantix, Gartner, JLL Technology analysis
Slide 26: The number of Proptech companies has grown dramatically
The number of Proptech companies has grown dramatically Building Tenant Fund / Acquisitions & Capital Fundraising Financing Leasing Operations Experience Portfolio Disposition Underwriting Projects Management Management Management * * Acquisition announced 10/21/21; to close in Q4 26 | © 2022 Jones
Slide 28: CRE technology strategy is top of mind for our clients, and they are asking for our help
CRE technology strategy is top of mind for our clients, and they are asking for our help 78% 99% Companies plan to Indicate they will need incorporate CRE tech into technology partners next year their portfolios by 2025 to manage their workplace 28 | © 2022 Jones Lang LaSalle IP, Inc. All rights res
Slide 29: Hybrid work and sustainability are accelerating CRE’s technology transformation
Hybrid work and sustainability are accelerating CRE’s technology transformation Hybrid work Sustainability 77% of surveyed occupiers see offering 83% of occupiers and 78% of investors remote / hybrid work as critical to attracting surveyed believe climate risk is and retaining talent financial risk
Slide 30: JLL’s unique technology strategy will empower our clients
JLL’s unique technology strategy will empower our clients, create material differentiation for our company while leading the transformation of our industry 30 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 31: Proptech presents a tremendous opportunity, JLL’s technology strategy is unique
AGENDA Proptech presents a tremendous opportunity, JLL’s technology strategy is unique and gaining momentum • The Proptech opportunity • Our unique technology strategy • Tech enabling JLL businesses • Building high growth high margin JLL tech business • Clear roadmap ahead, gaining momentum 31 | © 2
Slide 32: We’re curating a best-of-breed technology portfolio
Build Buy We’re curating a best-of-breed technology portfolio to tech-enable JLL and our clients Invest Partner 32 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 34: We will execute on our technology strategy to create long term shareholder value
We will execute on our technology strategy to create long term shareholder value Grow JLL market share Build Buy Tech-enable JLL Improve JLL margins Curate a portfolio of core business the best-of-breed technology products Deliver the best technology to clients Grow JLL technology business Invest Pa
Slide 35: Proptech presents a tremendous opportunity, JLL’s technology strategy is unique
AGENDA Proptech presents a tremendous opportunity, JLL’s technology strategy is unique and gaining momentum • The Proptech opportunity • Our unique technology strategy • Tech enabling JLL businesses • Building high growth high margin JLL tech business • Clear roadmap ahead, gaining momentum 35 | © 2
Slide 36: We will execute on our technology strategy to create long term shareholder value
We will execute on our technology strategy to create long term shareholder value Grow JLL market share Build Buy Tech-enable JLL Improve JLL margins Curate a portfolio of core business the best-of-breed technology products Deliver the best technology to clients Grow JLL technology business Invest Pa
Slide 37: For our Markets business, we launched a suite of products to tech enable our leasing brokers
For our Markets business, we launched a suite of products to tech enable our leasing brokers Situation Results What we wanted to achieve • Better pitches • Improved broker productivity 250%+ Adoption for products launched in 2022 • Greater client visibility Our Approach • Bought +21 NPS Markets brok
Slide 38: For our Capital Markets business, we built on our Skyline acquisition
For our Capital Markets business, we built on our Skyline acquisition to drive leads and insights to our advisors Situation Results What we wanted to achieve • Better pitches • Tech enabled leads 60%+ Achievement on 2025 goal in 6 months • New clients Capital Markets Our Approach • Bought +33 NPS ad
Slide 39: For our Work Dynamics business, technology is transforming how we deliver services
For our Work Dynamics business, technology is transforming how we deliver portfolio and IFM services to clients Situation Results What we wanted to achieve • Improved client outcomes • Better people experience • Cost efficiency Our Approach 75%+ Work Dynamics clients adopt Corrigo • Built a suite of
Slide 40: Proptech presents a tremendous opportunity, JLL’s technology strategy is unique
AGENDA Proptech presents a tremendous opportunity, JLL’s technology strategy is unique and gaining momentum • The Proptech opportunity • Our unique technology strategy • Tech enabling JLL businesses • Building high growth high margin JLL tech business • Clear roadmap ahead, gaining momentum 40 | © 2
Slide 41: We will execute on our technology strategy to create long term shareholder value
We will execute on our technology strategy to create long term shareholder value Grow JLL market share Build Buy Tech-enable JLL Improve JLL margins Curate a portfolio of core business the best-of-breed technology products Deliver the best technology to clients Grow JLL technology business Invest Pa
Slide 42: We are capitalizing on a large opportunity to build a material technology business
We are capitalizing on a large opportunity to build a material technology business Large high growth Established client JLLT business with market distribution high growth and high margin 42 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 43: For our tech business, we are focusing on investor and occupier products
For our tech business, we are focusing on investor and occupier products Investor Products Occupier Products Services 43 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 44: We deliver a comprehensive set of products and services
We deliver a comprehensive set of products and services Investor Products Occupier Products Building Tenant Operations | Experience Facilities Management | Sustainability Energy Optimization | AI-Powered Insights Marketplace Space | Management Technology Services Consulting | Integrated Delivery | S
Slide 45: Our suite of investor products focus on driving building efficiency, NOI and tenant satisfaction
Our suite of investor products focus on driving building efficiency, NOI and tenant satisfaction Situation Results What we wanted to achieve • Building efficiency • Higher Net Operating Income (NOI) 4B+ Square feet on Building Engines platform • Higher tenant satisfaction Our Approach • Bought and b
Slide 46: Our occupier products empower clients to manage their facilities, assets and service providers
Our occupier products empower clients to manage their facilities, assets and service providers effectively Situation Results What we wanted to achieve • Efficient facility management • Better occupancy planning and measurement 230%+ ROI achieved by Corrigo in 6 months • High user satisfaction Our Ap
Slide 47: JLL’s technology services business underpins our products, recognized as market leader
JLL’s technology services business underpins our products, and we were recognized as the market leader Innovators Leaders JLL Deloitte IBM Services Accenture Capabilities Cognizant Horizant eCIFM KPMG Ricoh Cushman & Wakefield Atos AMS AREMIS Challengers Specialists Momentum 47 | © 2022 Jones Lang L
Slide 48: Today, we have a fast-growing technology business set to reach $500M revenue by 2027
Today, we have a fast-growing technology business set to reach $500M revenue by 2027 600000 500000 $500M+ 400000 20%+ CAGR 300000 TBD 200000 $137M $120M +15% 100000 Q1-Q3: Q1-Q3: +50% $146M $97M 0 2020 2021 2022 2027 48 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 49: We project a $500M+ business that is profitable within 5 years, with 20%+ CAGR
We project a $500M+ business that is profitable within 5 years, with 20%+ CAGR 20%+ CAGR $500M+ Revenue 5YR Path to positive margin Growth drivers Profit drivers 1. CRE tech tailwinds 1. Economies of scale 2. Increased adoption by JLL clients 2. Improve gross margins 3. Early stage products 49 | © 2
Slide 50: We will execute on our technology strategy to create long term shareholder value
We will execute on our technology strategy to create long term shareholder value Grow JLL market share Build Buy Tech-enable JLL Improve JLL margins Curate a portfolio of core business the best-of-breed technology products Deliver the best technology to clients Grow JLL technology business Invest Pa
Slide 51: We will execute on our technology strategy to create long term shareholder value
We will execute on our technology strategy to create long term shareholder value Grow JLL market share Build Buy Tech-enable JLL Improve JLL margins Curate a portfolio of core business the best-of-breed technology products Deliver the best technology to clients Grow JLL technology business Invest Pa
Slide 52: We are investing in market leading Proptech companies through JLL Spark
We are investing in market leading Proptech companies through JLL Spark 52 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 53: Our technology investment strategy spans across all stages of Proptech
Our technology investment strategy spans across all stages of Proptech to help curate our portfolio of best of breed products Growth Spark X Fund of Funds JLLSpark Fund Investments Incubation of Early stage Proptech Early to Investment combined with Intent concepts targeting big deal flow and global
Slide 54: The Spark brand is well-regarded by our 40+ portfolio companies and our clients
The Spark brand is well-regarded by our 40+ portfolio companies and our clients 75 NPS 60% Portfolio companies adopted Founder NPS by our top 50 clients 54 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 55: Our fund has an IRR of 37%, outperforming industry benchmarks
Our fund has an IRR of 37%, outperforming industry benchmarks Fund Performance Spark Total First $100M Life to Date, As of September 2022 Investments $302M $100M Fair Market Value $504M $235M Realized Gains $6M $6M IRR 37% 50% Multiple On Invested Capital (MOIC) 1.7x 2.4x 55 | © 2022 Jones Lang LaSa
Slide 56: Proptech presents a tremendous opportunity, JLL’s technology strategy is unique
AGENDA Proptech presents a tremendous opportunity, JLL’s technology strategy is unique and gaining momentum • The Proptech opportunity • Our unique technology strategy • Tech enabling JLL businesses • Building high growth high margin JLL tech business • Clear roadmap ahead, gaining momentum 56 | © 2
Slide 57: We will execute on our technology strategy to create long term shareholder value
We will execute on our technology strategy to create long term shareholder value Grow JLL market share Build Buy Tech-enable JLL Improve JLL margins Curate a portfolio of core business the best-of-breed technology products Deliver the best technology to clients Grow JLL technology business Invest Pa
Slide 59: JLL’s unique technology strategy will empower our clients, create material differentiation
JLL’s unique technology strategy will empower our clients, create material differentiation for our company, while leading the transformation of our industry The opportunity Technology is transforming commercial real estate Our technology strategy to curate a best-of-breed The strategy technology por
Slide 60: Work Dynamics: A differentiated business positioned for growth
Work Dynamics: A differentiated business positioned for growth Neil Murray CEO, Work Dynamics
Slide 61: A differentiated business positioned for growth
AGENDA A differentiated business positioned for growth • Business and market opportunity • Key growth drivers 61 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 62: The Work Dynamics business is large, diverse, and resilient
The Work Dynamics business is large, diverse, and resilient Strong recurring revenue $1.7B $182M 5+ years in annual fee revenue of annual Adjusted EBITDA average contract length Global scale and diversification 1.6B >500 $10B square feet under management accounts globally direct managed spend Financ
Slide 63: Work Dynamics delivers value across all sectors and asset types
Work Dynamics delivers value across all sectors and asset types Key industries Our services Property types Financial services Office Technology & media Project Workplace Industrial management management Public sector Laboratories Talent Sustainability Health care Cost Data centers Life sciences Port
Slide 64: We empower the world’s greatest organizations to do their best work
We empower the world’s greatest organizations to do their best work Vaccine E-commerce Patient development and delivery care and production Electric vehicle Social Public design and media and services production connectivity We design, build, lease and manage the workplaces that power the global eco
Slide 65: The world has changed
The world has changed Evolving market dynamics Geo-economic Changing ways Demand for Human-centricity Operational & landscape of work decarbonization & purpose physical resilience 65 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 66: These changes are driving increased demand for our products and services
These changes are driving increased demand for our products and services Evolving market dynamics Geo-economic Changing ways Demand for Human-centricity Operational & landscape of work decarbonization & purpose physical resilience Increased demand for Work Dynamics: Location analytics Workplace stra
Slide 67: We leverage superior technology to solve complex challenges
We leverage superior technology to solve complex challenges JLLAzara • The definitive business intelligence platform for making real estate portfolio and workplace decisions • Insights delivered through a unique combination of proprietary data and systems integration • A centralized and secure solut
Slide 68: Our Work Dynamics platform generates growth across all JLL business segments
Our Work Dynamics platform generates growth across all JLL business segments One JLL Smart buildings Life sciences Data centers JLLT + Work Dynamics Markets Advisory + Work Dynamics + Markets Work Dynamics Advisory + Capital Markets Work Dynamics platform  Integration of market perspectives  Knowl
Slide 69: Our platform is differentiated and difficult to replicate
Our platform is differentiated and difficult to replicate Points of differentiation Driving results • Global scale and • Product discipline • Positioned to serve any organization, anywhere connectivity globally with consistent products and services • Dynamic delivery • Complete integration • Platfor
Slide 70: We are gaining share in a fragmented market
We are gaining share in a fragmented market Large market Market growing steadily JLL growing faster Current Market Size ~$200B 8+% 4+% High single-digit fee Market CAGR revenue growth over 5% – Top 5 Firms a multi-year period Note: Market size per Frost & Sullivan and JLL Research, based on total co
Slide 71: A differentiated business positioned for growth
AGENDA A differentiated business positioned for growth • Business and market opportunity • Key growth drivers 71 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 72: Work Dynamics: Key growth drivers
Work Dynamics: Key growth drivers Market drivers Increasing demand for: Growth in integrated Increased business complexity outsourcing 2025 fee Sustainability advisory and Demand for decarbonization revenue target of implementation $2.2B – $2.4B Operational efficiency, Need for cost management dynam
Slide 73: Work Dynamics: Expanding margins while improving client outcomes
Work Dynamics: Expanding margins while improving client outcomes Specializing in premium delivery Standardizing essential delivery • Superior advisory services • Dynamic, tech-enabled delivery • Product consistency • Outcome-based pricing • Process automation • Global scale and centralization 73 | ©
Slide 74: We are confident in the future of Work Dynamics
We are confident in the future of Work Dynamics Growing market share and expanding margins We are shaping the Superior platform that is difficult to future of real replicate estate for a better world Increased complexity driving growth opportunities 74 | © 2022 Jones Lang LaSalle IP, Inc. All rights
Slide 75: Panel Discussion: A look across business segments
Panel Discussion: A look across business segments Greg O’Brien, CEO Markets Advisory Richard Bloxam, CEO Capital Markets Mark Gabbay, CEO LaSalle Moderated by: Karen Brennan, CFO
Slide 76: We are JLL
We are JLL Markets Advisory Capital Markets LaSalle Greg O’Brien Richard Bloxam Mark Gabbay $3.2B $2.5B $473M Fee Revenue Fee Revenue Fee Revenue $547M $543M $171M Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA 1B SQ FT $315B $82B Leased globally Global Capital Markets of diversified assets under p
Slide 77: JLL Investor Briefing – Break in progress
JLL Investor Briefing Break in progress
Slide 78: Financial discussion & 2025 targets
Financial discussion & 2025 targets Karen Brennan CFO
Slide 79: Focused on profitable growth and disciplined capital allocation
AGENDA Focused on profitable growth and disciplined capital allocation • Performance highlights • Revenue resiliency & expense structure • Cash conversion & capital allocation • 2025 financial targets 79 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 80: Two decades of strong Fee Revenue growth
Two decades of strong Fee Revenue growth Fee Revenue ($B) $8.0B 12.5% CAGR $0.9B 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 80 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved. Revision to 2016 Fee Revenue definition as part of ASC606
Slide 81: Faster Adjusted EBITDA growth, with rapid rebounds from macro downturns
Faster Adjusted EBITDA growth, with rapid rebounds from macro downturns $1.5B Adjusted EBITDA ($B) 14.9% CAGR $107M 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 81 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved. Refer to appendix for d
Slide 82: High single digit Fee Revenue growth over the last five years
High single digit Fee Revenue growth over the last five years Fee Revenue ($B) 9.6% $8.0B CAGR $5.1B 2016 2017 2018 2019 2020 2021 Organic CAGR (2016-2019) of ~7.5% prior to HFF acquisition and COVID disruption 82 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved. Refer to appendix for defini
Slide 83: Margin expansion has resulted in mid-teens Adjusted EBITDA growth
Margin expansion has resulted in mid-teens Adjusted EBITDA growth Adjusted EBITDA ($M) Adjusted EBITDA Margin (%) $1,497 +340 bps +530 bps 18.7% ex EE’s 17.1% $ 209 2.6% CAGR 14.8% CAGR ex EE’s 13.4% 0.7% $679 $ 34 $ 1,287 16.1% 12.7% $ 645 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021
Slide 84: Adjusted EPS has grown faster than both Adjusted EBITDA and Fee Revenue
Adjusted EPS has grown faster than both Adjusted EBITDA and Fee Revenue Adj. EPS Growth $19.47 18.4% CAGR $3.15 15.8% CAGR ex EE’s $16.32 $8.38 $0.55 $7.83 2016 2017 2018 2019 2020 2021 Adj Diluted EPS ex Equity Earnings Equity Earnings 84 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved. Eq
Slide 85: Focused on profitable growth and disciplined capital allocation
AGENDA Focused on profitable growth and disciplined capital allocation • Performance highlights • Revenue resiliency & expense structure • Cash conversion & capital allocation • 2025 financial targets 85 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 86: Significant increase in the size and scale of our business since the Global Financial Crisis
Significant increase in the size and scale of our business since the Global Financial Crisis 2009 2021 Growth Factor Fee Revenue $2.5B1 $8.0B 3x Adjusted EBITDA $239M $1.5B 6x Adjusted EPS $1.75 $19.47 11x Total Assets $3.1B $15.5B 5x Free Cash Flow $206M $797M 4x 86 | © 2022 Jones Lang LaSalle IP,
Slide 87: Resilient revenue base and variable cost structure position the business to recover quickly
Resilient revenue base and variable cost structure position the business to recover quickly from a downturn Resilient fee Variable cost Fixed cost revenue base actions Rapid recovery from economic downturns 87 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 88: Track record of growing greater than 3x global GDP
Track record of growing greater than 3x global GDP Global GDP and JLL Fee Revenue Growth (Correlation of JLL Fee Revenue growth and global GDP growth: ~0.9) 40% 30% 20% JLL Fee Growth 9.8% Average 10% JLL Fee Growth Global GDP Growth 3.1% Average Global GDP Growth 0% -10% -20% 2008 2009 2010 2011 20
Slide 89: Variable cost base provides a built-in earnings resiliency
Variable cost base provides a built-in earnings resiliency 2021 Fee-based Operating Expenses: $7,033M Highlights • Fixed expenses have increased 14% D&A R&A All Other 3% 1% September YTD compared to prior year Variable 21% • Excluding D&A and R&A: ‒ 2021 53% variable ‒ 2021 47% fixed • Primary drive
Slide 90: Increased focus on operational efficiencies: Multiple levers to reduce costs
Increased focus on operational efficiencies: Multiple levers to reduce costs Process Business Improvement Process Line Leverage Excellence System Alignment Internal Rationalization Workforce Resources Management Location Intelligent Strategy Automation People Travel & Excellence Entertainment Contro
Slide 91: Driving operational improvement example #1: Centralizing lease administration
Driving operational improvement example #1: Centralizing lease administration Situation Results What we wanted to achieve • Seamless integration with Work Dynamics • Global service platform aimed at reducing $7M Estimated C&B costs avoided costs and superior client experience • Efficient operational
Slide 92: Driving operational improvement example #2: Invoice processing and payments
Driving operational improvement example #2: Invoice processing and payments Situation Results What we wanted to achieve Total estimated benefits, • Significant labor productivity gains $22M including $8M labor cost reduction • Increase the security of our payments Our approach • Leveraged automation
Slide 93: Resilient revenue base and variable cost structure position the business to recover quickly
Resilient revenue base and variable cost structure position the business to recover quickly from a downturn Resilient fee Variable cost Fixed cost revenue base actions Rapid recovery from economic downturns 93 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 94: Focused on profitable growth and disciplined capital allocation
AGENDA Focused on profitable growth and disciplined capital allocation • Performance highlights • Revenue resiliency & expense structure • Cash conversion & capital allocation • 2025 financial targets 94 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 95: Strong history of Free Cash Flow conversion
Strong history of Free Cash Flow conversion Improved Working Capital efficiency High quality of Earnings • Garnered material Adjusted Net improvement in Income growth • Conservative approach Receivable DSO over to adjustments past several years • Averaged mid-teens Average Adjusted Net Income • Vast
Slide 96: Clear capital allocation priorities
Clear capital allocation priorities 1 2 3 Investments in technology and Return capital Selective M&A business operations to shareholders to drive future growth All while maintaining an investment grade balance sheet 96 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 97: Track record of balanced approach to capital allocation
Track record of balanced approach to capital allocation Over last 3 years, we have invested $2.3B, Free Cash Flow was $1.9B LaSalle co- investments & JLLT CVC investments Shareholder Returns Acquisitions1 ~$0.4B ~$1.1B ~$0.8B 17% of total investment 48% of total investment 35% of total investment 1)
Slide 98: Investing for the future
PRIORITY #1 Investing for the future JLLT CVC LaSalle Investments co-investments Innovation Pipeline Alignment with Clients • Part of four-pronged approach • Cash distributions have to developing technology exceeded contributions by platform to tech-enable JLL $130M since 2016 and our clients • Inve
Slide 99: Committed to returning capital to shareholders
PRIORITY #2 Committed to returning capital to shareholders Return of Capital Our Approach $M $700 $600 Reduced • Flexibility to pursue programmatic $500 share count by and opportunistic share repurchases ~8% over last $400 three years • At a minimum, will repurchase shares to offset stock compensati
Slide 100: Disciplined approach to evaluating M&A opportunities
PRIORITY #3 Disciplined approach to evaluating M&A opportunities Financial Review Process We close on a very small number of the acquisitions that we evaluate  Cost of capital and alternative use considerations  Risk adjusted financial hurdles and time horizons  Build vs buy evaluation  Review o
Slide 101: Investment grade Balance Sheet allows for pursuit of capital allocation priorities
Investment grade Balance Sheet allows for pursuit of capital allocation priorities Historical Reported Net Leverage Key Metrics Peak Year-end 2.5x Current Credit Ratings • Moody’s: Baa1 Target • Standard and Poor’s: BBB+ 2.0x maximum 1.5x Balance Sheet (Sept. 30, 2022) • Total Net Debt of $1.7B 1.0x
Slide 102: Focused on profitable growth and disciplined capital allocation
AGENDA Focused on profitable growth and disciplined capital allocation • Performance highlights • Revenue resiliency & expense structure • Cash conversion & capital allocation • 2025 financial targets 102 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 103: Fee Revenue growth drivers
Fee Revenue growth drivers Expand Product Offering Market Share Gains • Cross selling Industry Tailwinds • Expansion of services • Global scale across property types • Organic share gains • Growth in outsourcing • Focus on growth from smaller players • Increasing allocations to industries • Superior
Slide 104: Adjusted EBITDA growth drivers
Adjusted EBITDA growth drivers Operational Efficiencies Technology • Drive operational and Revenue Growth process improvements • Producer productivity • Expand shared service • Higher quality leads centers • Proven ability to deliver top line results drives • System rationalization Adjusted EBITDA d
Slide 105: Assumptions underlying our targets
Assumptions underlying our targets Key Assumptions • IMF GDP outlook as of October 2022 • FX rates as of October 27, 2022 • Equity Earnings of $50-100M per annum vs $209M in 2021 • Incentive Fees $30-50M per annum • Effective tax rate of ~22% • Includes tuck-in but no material M&A 105 | © 2022 Jones
Slide 106: 2025 financial targets
2025 financial targets 2025 Fee Revenue Targets by Segment 2025 Consolidated JLL Targets Markets Advisory $3.9 - $4.3B Capital Markets $3.0 - $3.3B Fee revenue $10-11B Work Dynamics $2.2 - $2.4B Adj. EBITDA Margin 16-19% LaSalle $525 - $575M Net Debt / Adj. EBITDA < 2x JLL Technologies $325 - $375M
Slide 107: Expect consistent, predictable growth after 2023
Expect consistent, predictable growth after 2023 Consolidated Fee Revenue Growth 6-8% CAGR $10B-$11B $8B Assumes a recessionary environment in first half of 2023 2021 2022 2023 2024 2025 Target 107 | © 2022 Jones Lang LaSalle IP, Inc. All rights reserved. Refer to appendix for definitions and reconc
Slide 108: Focused on profitable growth and disciplined capital allocation
IN SUMMARY Focused on profitable growth and disciplined capital allocation Proven record of growing Adjusted EBITDA and Adjusted Diluted EPS faster than Fee Revenue Resilient business – grows at 3x GDP over the cycle Strong cash generation and disciplined capital allocation – with increasing returns
Slide 109: Q&A Session
SEE A BRIGHTER WAY
Slide 110: JLL Investor Briefing – Post-event survey
JLL Investor Briefing Post-event survey
Slide 111: Appendix & non-GAAP reconciliations
Appendix & non-GAAP reconciliations
Slide 112: Fee Revenue diversification by asset class
Fee Revenue diversification by asset class Capital Markets – Investment Sales, Markets Advisory – Leasing Debt/Equity Advisory and Other Other Other 15% Office 6% 18% Retail Hotel 7% Office 5% 57% TTM 3Q22 TTM 3Q22 Industrial 19% Industrial Resi 30% 33% Retail 11% Other Other 6% 16% Office Retail 26
Slide 113: Recast of 2017 Fee Revenue Base
Recast of 2017 Fee Revenue Base (In Millions) Original Target Recast 2016 Fee Revenue $5,757 2x $5,074 • Revision to 2016 fee revenue definition as part of ASC606 accounting change • Margin impacted by nearly 200 basis points as a result of the revision 113 | © 2022 Jones Lang LaSalle IP, Inc. All r
Slide 114: Equity Earnings have averaged ~5% of consolidated Adjusted EBITDA
Equity Earnings have averaged ~5% of consolidated Adjusted EBITDA over the last five years 2021 Equity Earnings of $209M Equity Earnings Highlights LaSalle co-investment equity earnings driven by: Other 2% • Earnings distributions • Fair value marks JLL Technology equity earnings primarily driven by
Slide 115: What is included and excluded from Adjusted EBITDA
What is included and excluded from Adjusted EBITDA Included Excluded Stock compensation Mortgage servicing rights derivatives Equity earnings from real estate Restructuring charges co-investments Acquisitions expenses Equity earnings from corporate venture capital investments Equity earnings from mi
Slide 116: Focused on acquisitions that impact multiple business segments
Focused on acquisitions that impact multiple business segments Markets Capital Work JLL Date Recent Acquisitions LaSalle Advisory Markets Dynamics Technologies Jul 2019 HFF Jul 2019 Vincia Oct 2019 Peloton Aug 2021 Skyline Nov 2021 Building Engines Jan 2022 Hank Jan 2022 Gilliland Construction Jul 2
Slide 117: Fee revenue / fee-based operating expenses reconciliation
Fee revenue / fee-based operating expenses reconciliation Nine Months Twelve Months Ended Dec 31 Ended Sep 30 ($M) 2016 2020 2021 2022 Revenue $12,991.2 $16,589.9 $19,367.0 $15,257.3 Gross contract costs (7,893.4) (10,464.4) (11,290.2) (9,156.6) Net non-cash MSR and mortgage banking derivative activ
Slide 118: Reconciliation of net income to adjusted net income and adjusted diluted EPS
Reconciliation of net (loss) income to adjusted net income and adjusted diluted earnings per share Nine Months Twelve Months Ended Dec 31 Ended Sep 30 ($M except per share data) 2009 2016 2020 2021 2022 Net (loss) income attributable to common shareholders ($4.1) $329.3 $402.5 $961.6 $497.7 1 Dilute
Slide 119: Reconciliation of net income to adjusted EBITDA
Reconciliation of net income (loss) attributable to common shareholders to adjusted EBITDA Nine Months Twelve Months Ended Dec 31 Ended Sep 30 ($M) 2002 2009 2016 2020 2021 2022 Net income (loss) attributable to common shareholders $27.1 ($4.1) $329.3 $402.5 $961.6 $479.7 Interest expense, net of in
Slide 120: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow Nine Months Twelve Months Ended Dec 31 Ended Sep 30 ($M) 2009 2016 2020 2021 2022 Net cash provided by (used in) operating activities $250.6 $222.6 $1,114.7 $972.4 ($401.9) Net capital additions - property and equipment (44.2) (216.2) (149.4) (175.9) (136.0) Free Cas
Slide 122: 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 123: 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

Jones Lang LaSalle — Investor Day (November 2022) on 6ix

Jones Lang Lasalle — Investor Day (November 2022)

Slide 1: Investor Briefing

Slide 2: Safe Harbor Statement

Slide 3: Agenda

Slide 4: A compelling growth story & investment

Slide 5: A global professional services firm specializing in real estate and investment management

Slide 6: What you will hear today

Slide 7: JLL is driving growth and achieving financial targets

Slide 8: Industry tailwinds provide a foundation for future growth

Slide 9: Our Beyond Strategy has created a more agile, close-knit organization

Slide 10: On track to exceed consolidated 2025 financial targets presented in December 2017

Slide 11: JLL is driving growth and achieving financial targets

Slide 12: Industry tailwinds provide a foundation for future growth

Slide 13: CRE technology strategy is top of mind for our clients

Slide 14: Green buildings result in higher rental rates for clients

Slide 15: Industry tailwinds provide a foundation for future growth

Slide 16: JLL is driving growth and achieving financial targets

Slide 17: JLL is differentiated in a highly fragmented market

Slide 18: We employ a highly selective acquisition strategy

Slide 19: JLL is driving growth and achieving financial targets

Slide 20: Focused on organic growth and margin expansion

Slide 21: Multiple drivers to achieve 2025 financial targets

Slide 22: JLL’s technology strategy – a unique accelerator

Slide 23: Proptech presents a tremendous opportunity, JLL’s technology strategy is unique

Slide 24: Technology is transforming commercial real estate

Slide 25: The CRE technology market is large and growing

Slide 26: The number of Proptech companies has grown dramatically

Slide 27: Proptech funding is growing prolifically

Slide 28: CRE technology strategy is top of mind for our clients, and they are asking for our help

Slide 29: Hybrid work and sustainability are accelerating CRE’s technology transformation

Slide 30: JLL’s unique technology strategy will empower our clients

Slide 31: Proptech presents a tremendous opportunity, JLL’s technology strategy is unique

Slide 32: We’re curating a best-of-breed technology portfolio

Slide 33: We are attracting top technology talent to JLL

Slide 34: We will execute on our technology strategy to create long term shareholder value

Slide 35: Proptech presents a tremendous opportunity, JLL’s technology strategy is unique

Slide 36: We will execute on our technology strategy to create long term shareholder value

Slide 37: For our Markets business, we launched a suite of products to tech enable our leasing brokers

Slide 38: For our Capital Markets business, we built on our Skyline acquisition

Slide 39: For our Work Dynamics business, technology is transforming how we deliver services

Slide 40: Proptech presents a tremendous opportunity, JLL’s technology strategy is unique

Slide 41: We will execute on our technology strategy to create long term shareholder value

Slide 42: We are capitalizing on a large opportunity to build a material technology business

Slide 43: For our tech business, we are focusing on investor and occupier products

Slide 44: We deliver a comprehensive set of products and services

Slide 45: Our suite of investor products focus on driving building efficiency, NOI and tenant satisfaction

Slide 46: Our occupier products empower clients to manage their facilities, assets and service providers

Slide 47: JLL’s technology services business underpins our products, recognized as market leader

Slide 48: Today, we have a fast-growing technology business set to reach $500M revenue by 2027

Slide 49: We project a $500M+ business that is profitable within 5 years, with 20%+ CAGR

Slide 50: We will execute on our technology strategy to create long term shareholder value

Slide 51: We will execute on our technology strategy to create long term shareholder value

Slide 52: We are investing in market leading Proptech companies through JLL Spark

Slide 53: Our technology investment strategy spans across all stages of Proptech

Slide 54: The Spark brand is well-regarded by our 40+ portfolio companies and our clients

Slide 55: Our fund has an IRR of 37%, outperforming industry benchmarks

Slide 56: Proptech presents a tremendous opportunity, JLL’s technology strategy is unique

Slide 57: We will execute on our technology strategy to create long term shareholder value

Slide 58: We are still early in our technology journey

Slide 59: JLL’s unique technology strategy will empower our clients, create material differentiation

Slide 60: Work Dynamics: A differentiated business positioned for growth

Slide 61: A differentiated business positioned for growth

Slide 62: The Work Dynamics business is large, diverse, and resilient

Slide 63: Work Dynamics delivers value across all sectors and asset types

Slide 64: We empower the world’s greatest organizations to do their best work

Slide 65: The world has changed

Slide 66: These changes are driving increased demand for our products and services

Slide 67: We leverage superior technology to solve complex challenges

Slide 68: Our Work Dynamics platform generates growth across all JLL business segments

Slide 69: Our platform is differentiated and difficult to replicate

Slide 70: We are gaining share in a fragmented market

Slide 71: A differentiated business positioned for growth

Slide 72: Work Dynamics: Key growth drivers

Slide 73: Work Dynamics: Expanding margins while improving client outcomes

Slide 74: We are confident in the future of Work Dynamics

Slide 75: Panel Discussion: A look across business segments

Slide 76: We are JLL

Slide 77: JLL Investor Briefing – Break in progress

Slide 78: Financial discussion & 2025 targets

Slide 79: Focused on profitable growth and disciplined capital allocation