Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q1 2022 Earnings Presentation
22 slides from Jones Lang Lasalle's earnings presentation, May 9, 2022
Slide 1: Earnings Presentation First Quarter 2022
Earnings Presentation First Quarter 2022 May 9, 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: First quarter highlights
First quarter highlights
Slide 4: Q1 2022 office leasing market highlights
Q1 2022 office leasing market highlights Global office leasing volumes by region, 2007 – Q1 2022 Rental growth for prime office assets - quarterly 45 6% 40 4% Rental change (q-o-q %) 35 2% 30 0% Millions sqm 25 -2% 20 -4% 15 -6% 10 -8% 5 -10% 0 -12% Americas EMEA Asia Pacific First Quarter Highlight
Slide 5: Q1 2022 capital markets highlights
Q1 2022 capital markets highlights Real estate investment volumes by region, 2007 – Q1 2022 Real estate investment volumes by sector, Q1 2021 vs Q1 2022 $1,400 Residential 44% $1,200 Office 46% $1,000 Industrial 30% US$ Billions US$ Billions $800 Retail 96% $600 Hotel 127% $400 Healthcare
Slide 6: Consolidated financials
Consolidated financials
Slide 7: Consolidated first quarter 2022 financial results
Consolidated first quarter 2022 financial results Growth rates and margins in local currency; growth rates represent % change over three months ended Q1 2021 Q1 2022 Q1 2021 ’22/’21 % Chg. Revenue $4.8B $4.0B +21% Fee Revenue $1.9B $1.4B +36% Operating Income $176M $81M +122% Operating Income
Slide 8: Business segments results
Business segments results — :
Slide 9: First quarter 2022 financial results – Business segments
First quarter 2022 financial results – Business segments $M. Growth rates and margins in local currency; growth rates represent % change over three months ended Q1 2022 Revenue Fee Revenue Adjusted EBITDA Adjusted EBITDA Margin Markets $1,000 $741 $111 14.9% Advisory +28% +36% 70% +300 bps C
Slide 10: Markets Advisory
Markets Advisory Growth rates and margins in local currency; growth rates represent % change over three months ended Q1 2021 Fee Revenue Adjusted EBITDA $M $741 $M, % of fee revenue $111 $26 $584 $553 $119 14.9% $19 $77 $26 $66 $107 $114 13.2% 11.9% $597 $458 $412 Q1 2020 Q1 2021 Q1 2022 Q1 2020 Q1
Slide 11: Capital Markets
Capital Markets Growth rates and margins in local currency; growth rates represent % change over three months ended Q1 2021 Fee Revenue Adjusted EBITDA $M $592 $M, % of fee revenue $118 $40 20.0% $83 $410 $393 $27 $30 $64 $59 $77 $469 $37 15.0% $320 $286 9.0% Q1 2020 Q1 2021 Q1 2022 Q1 2020 Q1 2021
Slide 12: Work Dynamics
Work Dynamics Growth rates and margins in local currency; growth rates represent % change over three months ended Q1 2021 Fee Revenue Adjusted EBITDA $M $411 $M, % of fee revenue $362 $364 $53 $35 $47 $47 $25 8.2% $176 $185 $163 6.9% $13 $153 $182 $130 3.6% Q1 2020 Q1 2021 Q1 2022 Q1 2020 Q1 2021 Q1
Slide 13: JLL Technologies
JLL Technologies Growth rates and margins in local currency; growth rates represent % change over three months ended Q1 2021 Fee Revenue Adjusted EBITDA $M $45 $M, % of fee revenue $14 46.8% $29 $30 (35.5%) (26.0%) ($10) ($12) Q1 2020 Q1 2021 Q1 2022 Q1 2020 Q1 2021 Q1 2022 First Quarter Highlights
Slide 14: LaSalle
LaSalle Growth rates and margins in local currency; growth rates represent % change over three months ended Q1 2021 Fee Revenue Adjusted EBITDA $M $112 $4 $M, % of fee revenue $99 $6 $17 $85 $0 $11 $6 $26 $21 30.6% $82 $91 19.9% $79 (21.6%) Q1 2020 Q1 2021 Q1 2022 ($21) Advisory Fees Transaction Fee
Slide 15: Capital allocation and balance sheet
Capital allocation and balance sheet
Slide 16: Debt and leverage
Debt and leverage Highlights: Investment Grade Credit Ratings • Strong balance sheet with ample liquidity provides operational flexibility Moody’s: Baa1 • Net debt increase primarily attributable to increase in annual incentive compensation and S&P: BBB+ share repurchases Debt and leverage ($M) Q1 2
Slide 17: Return of capital to shareholders
Return of capital to shareholders $M $343 $150 $100 $38 $43 2018 2019 2020 2021 Q1 2022 Dividend Share Repurchase Highlights • Disciplined capital allocation strategy has led to an increased commitment to returning capital to shareholders • Strong balance sheet and meaningful free cash flow provide
Slide 18: Supplemental materials & non-GAAP reconciliations
Supplemental materials & non-GAAP reconciliations
Slide 19: Fee revenue / fee-based operating expenses reconciliation
Fee revenue / fee-based operating expenses reconciliation Three Months Ended March 31 ($M) 2022 2021 Revenue $4,801.4 $4,037.1 Gross contract costs (2,904.5) (2,602.9) Net non-cash MSR and mortgage banking derivative activity 3.6 (9.7) Fee revenue $1,900.5 $1,424.5 Operating expenses $4,625.7 $3,956
Slide 20: Reconciliation of net income to adjusted net income and adjusted diluted EPS
Reconciliation of net income to adjusted net income and adjusted diluted earnings per share Three Months Ended March 31 ($M except per share data) 2022 2021 Net income attributable to common shareholders $145.6 $103.0 Shares (in 000s) 50,957 52,175 Diluted earnings per share $2.86 $1.97 Net income a
Slide 21: Reconciliation of net income attributable to common shareholders to adjusted EBITDA
Reconciliation of net income attributable to common shareholders to adjusted EBITDA Three Months Ended March 31 ($M) 2022 2021 Net income attributable to common shareholders $145.6 $103.0 Interest expense, net of interest income 10.2 10.4 Provision for income taxes 40.3 28.2 Depreciation and amortiz
Slide 22: 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