Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — JP Morgan U.S. All Stars Conference 2024
37 slides from Jones Lang Lasalle's conference presentation, Sep 17, 2024
Slide 1: JLL Overview
JLL Overview We shape the future 14.88 of real estate for a better world.
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: JLL Today
JLL Today A global professional services firm specializing in real estate and investment management An industry leader with global scale A Fortune 200 company with An industry leader across Operations in 80 countries with more than $20 billion of annual each of our service lines over 300 offices glo
Slide 4: Over 200 years building a premier global brand and platform
JLL History Over 200 years building a premier global brand and platform 1760 1783 1968 1997 1999 2008 2011 2015 2019 Jones Lang Wootton LaSalle Partners founded founded LaSalle Partners initial public offering LaSalle Partners and Jones Lang Wootton merge to create Jones Lang LaSalle Integrated glob
Slide 5: JLL awards & recognition
JLL awards & recognition Fortune | 2017-2024 Fortune | 2015-2024 Bloomberg | 2020-2023 Ethisphere | 2008-2024 World’s Most Admired Fortune 500 - #193 Gender-Equality Index World’s Most Ethical Companies Companies Disability Equality Index | 2019-2023 Energy Star | 2012-2024 Human Rights Campaign Fou
Slide 6: Industry tailwinds provide a foundation for future growth
Industry tailwinds provide a foundation for future growth 1 2 3 4 5 Growth in Rising capital Increased Tech-driven Sustainability outsourcing allocations urbanization fourth industrial in real estate revolution Corporations are Real Estate Cities house 56% Transformation Reducing carbon outsourcing
Slide 7: Our differentiation factors set us apart from the competition
Our differentiation factors set us apart from the competition JLL’s key differentiators Integrated global platform combined with local industry and sector expertise The industry’s most advanced data and technology platform Our “One JLL” culture allows us to seamlessly serve clients across business l
Slide 8: We have global scale and are diversified across asset classes
We have global scale and are diversified across asset classes Representative Asset Representative Industries Types Office Healthcare Industrials Life Sciences Retail Public Institutions Residential Technology 8 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved. Data Centers Financial Services
Slide 9: Technology and data capabilities drive margin expansion and growth
Technology and data capabilities drive margin expansion and growth Grow JLL market share Build Buy Tech-enable JLL Improve JLL margins Curate a portfolio of the core business best-of-breed technology products Deliver the best technology to clients Grow JLL technology business Invest Partner Increase
Slide 10: Our "One JLL" culture brought to life
Our “One JLL” culture brought to life Situation Result A large bio-tech client with real estate needs across multiple service line: • Client used multiple service providers 5x Increase in revenue over the last ten years • Lacked a holistic approach to managing their real estate 2M • Business was gro
Slide 11: Our sustainability program is central to our purpose
Our sustainability program is central to our purpose Climate action Key Targets: for sustainable real estate • Achieve net-zero carbon emissions across all JLL-occupied buildings by 2030 • Achieve net-zero carbon emissions across scopes 1, 2, and 3 by 2040 for Clim • 100% of JLL offices >10,000 ft²
Slide 12: JLL serves clients through five business segments
JLL serves clients through five business segments Markets • Leasing Advisory • Property Management • Advisory, Consulting and Other Segment Contribution to FY 2023 Adj EBITDA Capital • Investment Sales, Debt/Equity Advisory and Other ($Million) (1) • Value and Risk Advisory Markets • Loan Servicing
Slide 13: Markets Advisory
Markets Advisory Advisory, Consulting and Other 44% share of Consolidated FY 2023 Adjusted EBITDA 2% “One JLL” Property Management Propert manage y 41% men 16,500 Share of t ma Asse na t ge m Markets Advisory Leasing en g Pro t Agency leasing FY 2023 in pe Revenue 57% s rty ea transactions (1) Ex na
Slide 14: Capital Markets and Loan Servicing
Capital Markets Loan Servicing 18% share of Consolidated FY 2023 Adjusted EBITDA 9% Investment Sales, “One JLL” Value and Risk Debt/Equity Advisory and Other Advisory Equity 71% Portf olios Placem ent 20% s Co M&A Provided capital markets Share of ion r Fin pora / Capital Markets i si t services for
Slide 15: Work Dynamics
Work Dynamics Portfolio Services and Other 28% share of Consolidated FY 2023 Adjusted EBITDA 4% Project “One JLL” Management 21% Design Solutio ns ng & 1.8B square ft Con eeri ns Ma stru Share of n gi atio na ge ctio En per O m n en Work Dynamics Pro t Real estate managed for FY 2023 jec M Revenue t
Slide 16: JLL Technologies
JLL Technologies N/M share of Consolidated FY 2023 Adjusted EBITDA Buy Long-term Value Creation ower ed Oc s AI P ights Sustain abil ity c Build Buy s ct In up du gy tion Au Fac ier to ro a We’re curating a tim r ili atio Op Ene Pro rP iz tie n m best-of-breed s sto duc technology portfolio Inve ts
Slide 17: LaSalle
LaSalle Incentive Fees 11% share of Consolidated FY 2023 Adjusted EBITDA 10% Transaction Fees and Other 6% $89B Share of LaSalle nag ed Earn ed Global assets under FY 2023 ma ba Revenue management (1) In & se d do ce e s oy n pl Fee nti pe e ,d ve F rfo Advisory Fees ory $388M ed rm itt 84% ees mm a
Slide 18: History of high-single digit Revenue growth
History of high-single digit Revenue growth Revenue ($B) 7.2% Average Revenue $20.8B Growth $13.0B 2016 2017 2018 2019 2020 2021 2022 2023 18 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 19: Resilient business lines supporting high-single digit Adjusted EBITDA growth
Resilient business lines supporting high-single digit Adjusted EBITDA growth Adjusted EBITDA ($M)1 8.1% Average Adj. EBITDA Growth $938M $648M 2016 2017 2018 2019 2020 2021 2022 2023 19 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved. Refer to appendix for definitions and reconciliations of
Slide 20: Adjusted EPS has grown faster on average than both Adjusted EBITDA and Revenue
Adjusted EPS has grown faster on average than both Adjusted EBITDA and Revenue Adjusted EPS1 9.3% Average Adj. EPS growth $10.39 $7.86 2016 2017 2018 2019 2020 2021 2022 2023 20 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved. Refer to appendix for definitions and reconciliations of non-GAA
Slide 21: Track record of growing greater than 3x global GDP
Track record of growing greater than 3x global GDP Global GDP and JLL Revenue Growth (Correlation of JLL Revenue growth and global GDP growth: ~0.8) 40% 30% 20% JLL Revenue Growth 9.6% Average 10% JLL Revenue Growth Global GDP Growth 3.1% Average Global GDP Growth 0% -10% -20% 2008 2009 2010 2011 20
Slide 22: Clear capital allocation priorities
Clear capital allocation priorities 1 2 3 Invest in the business Return capital Selective M&A to drive future growth to shareholders All while maintaining an investment grade balance sheet 22 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 23: Investment grade Balance Sheet allows for balanced pursuit of capital allocation priorities
Investment grade Balance Sheet allows for balanced pursuit of capital allocation priorities Historical Net Leverage Ratio (1) Key Metrics Peak Year-end 2.5x Current Credit Ratings • Moody’s: Baa1 Target leverage 2.0x • Standard and Poor’s: BBB+ range of 0x-2x 1.5x Balance Sheet (2) • Total Net Debt
Slide 24: Committed to returning capital to shareholders
Committed to returning capital to shareholders Return of Capital Our Approach $M $700 $600 Reduced • Programmatic share repurchases $500 share count by provide a consistent return of capital to ~8% over last shareholders $400 four years • At a minimum, offset stock $300 compensation dilution on an a
Slide 25: Multiple levers to achieve financial targets
Multiple levers to achieve financial targets Superior data and advice drives Expand product market share gains offering to existing Leverage global shared clients Utilize services platform technology to drive productivity *Actioned $170M of fixed cost savings for fiscal year 2023 and $210M on an ann
Slide 26: Mid-Term Financial Targets
Mid-Term Financial Targets Mid-Term Consolidated Financial Targets Revenue $25-30B Gross Contract Costs $15-19B Adjusted EBITDA $1.6 – 2.1B Net Debt / Adj. EBITDA < 2x 26 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 27: JLL is well positioned to drive long-term profitable growth and create shareholder value
IN SUMMARY JLL is well positioned to drive long-term profitable growth and create shareholder value Resilient business grows at nearly 3x GDP over the cycle – supported by industry tailwinds Differentiation factors lead to market share gains Our “One JLL” culture enables cross-selling opportunities
Slide 28: Appendix & non-GAAP reconciliations
Appendix & non-GAAP reconciliations
Slide 29: Additional Segment Detail
Additional Segment Detail Twelve Months Ended December 31, ($M) 2023 2022 2021 2020 Markets Advisory Revenue $4,122 $4,416 $4,189 $3,187 Gross Contract Costs (1,154) (1,055) (987) (890) Platform Operating Expenses 2,616 2,912 2,731 2,034 Adjusted EBITDA $417 $528 $547 $338 Capital Markets Revenue $1
Slide 30: Additional Segment Detail (continued)
Additional Segment Detail (continued) Twelve Months Ended December 31, ($M) 2023 2022 2021 2020 JLL Technologies Revenue $246 $214 $166 $156 Gross Contract Costs (15) (14) (29) (36) Platform Operating Expenses 267 313 235 170 Adjusted EBITDA $(19) $(98) $(87) $(39) LaSalle Revenue $484 $476 $500 $42
Slide 31: Reconciliation of full year adjusted EBITDA
Reconciliation of full year adjusted EBITDA Twelve Months Ended December 31, ($M) 2023 2022 2021 2020 Segment Markets Advisory $417 $528 $547 $338 Capital Markets 173 444 543 248 Work Dynamics 264 230 182 228 JLL Technologies (19) (98) (87) (39) La Salle 104 96 108 92 Adjusted EBITDA1 $938 $1,200 $1
Slide 32: Reconciliation of net income attributable to common shareholders to adjusted EBITDA
Reconciliation of net income attributable to common shareholders to adjusted EBITDA Twelve Months Ended Dec 31, ($M) 2023 2016 Net income attributable to common shareholders $225.4 $329.3 Interest expense, net of interest income 135.4 45.3 Income tax provision 25.7 117.8 Depreciation and amortizatio
Slide 33: Reconciliation of net income (loss) to adjusted net income and adjusted diluted earnings per share
Reconciliation of net income (loss) to adjusted net income and adjusted diluted earnings per share Twelve Months Ended Dec 31, ($M except per share data) 2023 2016 Net income (loss) attributable to common shareholders $225.4 $329.3 Shares (in 000s) 48,288 45,528 Diluted earnings (loss) per share $4.
Slide 34: Reconciliation of net debt and total liquidity
Reconciliation of net debt and total liquidity As of Dec 31, ($M) 2023 2022 Net Debt Cash and cash equivalents $410.0 $519.3 Total Debt 1,560.3 1,763.2 Short-term borrowings 147.9 164.2 Credit facility 625.0 1,225.0 Long-term senior notes 787.4 374.0 Total Net Debt $1,150.3 $1,243.9 Total Liquidity
Slide 35: 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 36: 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
Slide 37: Market and Industry Data
Market and Industry Data This presentation includes market and industry data and forecasts that the Company has derived from independent consultant reports, publicly available information, various industry publications, other published industry sources, and its internal data and estimates. Independe
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