Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q4 2017 Earnings Presentation
28 slides from Jones Lang Lasalle's earnings presentation, Feb 7, 2018
Slide 1: Supplemental Information
Supplemental Information 4th Quarter 2017 Earnings Call February 7, 2018
Slide 2: Global market overview
Global market overview Q4 2017 Macro-economic operating environment ▪ Global markets deliver strong finish to 2017 ▪ U.S. growth remains buoyant and ends year on solid ▪ Synchronized global growth acceleration and footing unemployment rates continue to decline ▪ Stimulative monetary policy, solid do
Slide 3: Consolidated financial results
Consolidated financial results Q4 2017 Highlights 2017 Commentary ▪ Double-digit consolidated fee revenue growth $2.2B $360M $4.92 ▪ Real Estate Services fee revenue growth led by Fee Adjusted Adjusted transaction execution in Capital Markets and revenue Leasing reflecting exceptional Q4 EBITDA dilu
Slide 4: Q4 2017 Real Estate Services revenue
Q4 2017 Real Estate Services revenue ($ in millions; % change in local currency over QTD Q4 2016) Americas EMEA Asia Pacific Total RES Leasing $ 481.1 ó 23% $ 116.5 ó 10% $ 106.4 ó 18% $ 704.0 ó 20% Capital Markets & Hotels- $ 148.7 ó 20% $ 200.9 ó 31% $ 82.4 ó 47% $ 432.0 ó 29% Fee Gross Revenue $
Slide 5: Full Year 2017 Real Estate Services revenue
Full Year 2017 Real Estate Services revenue ($ in millions; % change in local currency over Full Year 2016) Americas EMEA Asia Pacific Total RES Leasing $ 1,484.2 ó 16% $ 300.9 ó 11% $ 238.2 ó 9% $ 2,023.3 ó 15% Capital Markets & Hotels - $ 455.7 ó 13% $ 467.4 ó 19% $ 200.0 ó 26% $ 1,123.1 ó 18% Fee
Slide 6: JLL Capital Markets & Leasing performance vs market
JLL Capital Markets & Leasing performance vs market QUARTERLY FULL YEAR FULL YEAR Q4 2017 2017 2018 Actual Research Actual Research Current Forecast Capital Markets JLL Revenue Market Volume JLL Revenue Market Volume Market Volume USD USD USD USD USD Americas 20% (15)% 13% (12)% (15)% EMEA 42% 31% 2
Slide 7: Consolidated adjusted EBITDA margin performance
Consolidated adjusted EBITDA margin performance LaSalle Positive organic Technology M&A Other contribution Anticipated lower Transactional growth Continued strategic incentive and Primarily reflects Various discrete transaction fees across regions investments Integral items 2017 Consolidated Adjuste
Slide 8: Balance sheet & cash flow
Balance sheet & cash flow Cash Use ($ in millions) 2017 2016 2017 Highlights M&A (Including deferred) (1) $70 $538 ▪ $547M net debt reduction Investment 5 38 Grade Ratings driven by working capital Co-investment (2) improvement Dividends 33 29 Moody’s: Baa1 (Stable) S&P: BBB (Stable) Capital Expendi
Slide 9: 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 10: U.S. Tax reform
U.S. Tax reform Summary ▪ $141.3M GAAP expense recorded in Q4 2017 for estimated transition tax resulting from U.S. Tax Cuts and Jobs Act ▪ To be paid over the eight-year statutory period ▪ Negligible expense for the revaluation of deferred balances ▪ Does not impact 2017 adjusted EPS ▪ During 2018,
Slide 11: Segment Details
Segment Details © 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 12: Americas financial summary
Americas financial summary Q4 2017 Highlights 2017 Commentary ▪ Double-digit organic revenue growth with notable $993M $175M 17.6% performance in Leasing and Capital Markets Fee Adjusted Adjusted ▪ Capital Markets performance driven by revenue EBITDA EBITDA Industrial and Hotels investment sales and
Slide 13: EMEA financial summary
EMEA financial summary Q4 2017 Highlights 2017 Commentary ▪ Broad-based revenue growth across all service $670M $84M 12.6% lines; 40% organic Fee Adjusted Adjusted ▪ Property and Facilities Management driven by revenue EBITDA EBITDA Integral contribution margin ▪ Transactional revenue bounce back fr
Slide 14: Asia Pacific financial summary
Asia Pacific financial summary Q4 2017 Highlights 2017 Commentary ▪ Double-digit revenue growth across all business $424M $76M 17.8% lines driven organically Fee Adjusted Adjusted ▪ Exceptional Capital Markets performance; revenue EBITDA EBITDA significant transactions in Japan and Singapore margin
Slide 15: LaSalle Investment Management results
LaSalle Investment Management results 2017 Financial highlights 2017 AUM highlights $355M $101M 28.3% $58.1B $4.8B $9.2B Revenue Adjusted Adjusted AUM Capital Dry EBITDA EBITDA raised powder margin 2017 Commentary Assets Under Management By geography & type Asia Pacific ▪ Full year revenue decline d
Slide 16: Appendix
Appendix © 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 17: Currency overview
Currency overview 2017 Macro currency review ▪ British pound weakened significantly post-Brexit; steadily appreciated during 2017 ▪ Euro has steadily appreciated during 2017, largely driving Q4 impact ▪ Australian dollar stable to strengthening with commodity price improvement ▪ Japanese yen slightl
Slide 18: Q4 2017 Real Estate Services revenue
Q4 2017 Real Estate Services revenue ($ in millions; % change in USD over QTD Q4 2016) Americas EMEA Asia Pacific Total RES Leasing $ 481.1 ó 23% $ 116.5 ó 20% $ 106.4 ó 22% $ 704.0 ó 22% Capital Markets & Hotels $ 148.7 ó 20% $ 200.9 ó 42% $ 82.4 ó 50% $ 432.0 ó 35% - Fee Gross Revenue $ 153.2 ó 6%
Slide 19: Full Year 2017 Real Estate Services revenue
Full Year 2017 Real Estate Services revenue ($ in millions; % change in USD over Full Year 2016 ) Americas EMEA Asia Pacific Total RES Leasing $ 1,484.2 ó 16% $ 300.9 ó 12% $ 238.2 ó 10% $ 2,023.3 ó 15% Capital Markets & Hotels $ 455.7 - Fee ó 13% $ 467.4 ó 21% $ 200.0 ó 27% $ 1,123.1 ó 18% Gross Re
Slide 20: Prime Offices Capital Value Clock, Q4 2016 v Q4 2017
Prime Offices Capital Value Clock, Q4 2016 v Q4 2017 The JLL Property ClocksSM Notes: • Based on notional capital values for Grade A space in CBD or equivalent 20 • Source: JLL Research, January 2018. The JLL Property Clocks SM
Slide 21: Prime Offices Rental Clock, Q4 2016 v Q4 2017
Prime Offices Rental Clock, Q4 2016 v Q4 2017 The JLL Property ClocksSM Notes: • Based on notional capital values for Grade A space in CBD or equivalent 21 • Source: JLL Research, January 2018. The JLL Property Clocks SM
Slide 22: Q4 2017 selected business wins
Q4 2017 selected business wins Corporate Solutions Capital Markets Leasing & Management The Dime Savings Bank, New Transcontinental Gas Pipeline IBM York Company, Houston Americas Methodist Health System The Curtis, Philadelphia DataBank, Dallas-Fort Worth Broadstone Portfolio, Las Emerus Hospitals
Slide 23: Fee revenue / fee-based operating expenses reconciliation
Fee revenue / fee-based operating expenses reconciliation ▪ Reimbursable vendor, subcontractor and out-of-pocket costs reported as revenue and expense in JLL financial statements have been increasing steadily ▪ Gross accounting requirements increase revenue and costs without corresponding increase t
Slide 24: 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 December 31, Year Ended December 31, ($ in millions except per share data) 2017 2016 2017 2016 GAAP net income attributable to common shareholders $ 78.2 $ 165.3 $ 253.8 $ 317.8 Shares (in 000s
Slide 25: Reconciliation of GAAP Net Income to Adjusted EBITDA
Reconciliation of GAAP Net Income attributable to common shareholders to Adjusted EBITDA Three Months Ended Year Ended December 31, December 31, ($ in millions) 2017 2016 2017 2016 GAAP net income attributable to common shareholders $ 78.2 $ 165.3 $ 253.8 $ 317.8 Interest expense, net of interest in
Slide 26: 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 27: 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 28: © 2018 Jones Lang LaSalle IP, Inc. All rights reserved.
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.