Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Investor Presentation (November 2019)
24 slides from Jones Lang Lasalle's investor presentation, November 2019
Slide 1: Investor presentation
Investor presentation More than 93,000 employees, 80 countries, 1 global brand Published November 2019
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation, and other statements that Jones Lang LaSalle Incorporated (“JLL”) may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, with respect to JLL’s future financia
Slide 3: Who we are
Who we are Leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for
Slide 4: The JLL story
The JLL story Over 250 years building a premier global brand and platform 1760 1783 1968 1997 1999 2008 2011 2015 2019 Jones Lang Wootton founded LaSalle Partners founded LaSalle Partners initial public offering LaSalle Partners and Jones Lang Wootton merge to create Jones Lang LaSalle Integrated gl
Slide 5: What we do
What we do Diversified real estate services Leasing Property & Facility Management Broker transactions between 2018 Fee Revenue = $6.5B Management and outsourcing of tenants and landlords properties and portfolios Driven by economic growth and Driven by value enhancement for Capital Markets investor
Slide 6: Key trends and drivers / Strategic vision
Key trends and drivers Strategic vision We see four long-term trends that really help us. How we respond to these will be pivotal to our future success. As our strategic vision, Beyond is focused around delivering on four key drivers that enable us to meet these challenges and growth opportunities.
Slide 7: Corporate Solutions annuity revenues
Corporate Solutions annuity revenues Wide spectrum of corporate real estate partnering models fuels contractual fee revenue growth Corporate outsourcing services: • Integrated Facility Management • Project & Development Services • Leasing • Advisory, Consulting & Other © 2019 Jones Lang LaSalle IP,
Slide 8: 2025 Growth targets
2025 Growth targets Accelerate profitable growth Solid foundation supports 9% average annual fee revenue growth Corporate Capital Local LaSalle Investment Solutions Markets Markets Management 2025 Target 10%+ 2x 7%+ 2x Revenue Revenue Revenue Revenue CAGR CAGR Partner Integrate Leverage market Fewer
Slide 9: Pillars of Beyond
Pillars of Beyond ESG value drivers in our corporate vision Clients Brand Digital People Values • Embedding • Enhancing our reputation • Creating workplaces with • Embracing diversity & • Actively encouraging sustainability in all as one of the world’s most the highest levels of promoting inclusion
Slide 10: Business Highlights
Business Highlights
Slide 11: 2019 operating environment
2019 operating environment 2019 Global real estate outlook • Stable fundamentals supported by economic growth, significant capital availability and low interest rates • Softer investment volumes expected following near record 2018 given continued investor discipline • Continued robust leasing demand
Slide 12: Strong balance sheet for long-term growth
Strong balance sheet for long-term growth Highlights: • Prioritize paydown of credit facility to reach pre-HFF net debt € 350M • Capital expenditures remain focused on IT Senior Notes • Adequate liquidity to support continued long-term growth 10 year debt 1.96% fixed • Investment grade ratings refle
Slide 13: Continued investment for long-term growth
Continued investment for long-term growth Historical cash investment ~ $2.9B $900 $821 $800 Focused capital allocation strategy $700 26% $621 Highlights: $600 4% 24% 5% • Dividend increase driven by $500 improved cash flow 4% $400 $380 • Technology and innovation- focused capital expenditures $314 $
Slide 14: Consolidated Fee Revenue
Consolidated Fee Revenue JLL consolidated fee revenue ($ in millions) Highlights Reflects ASC 606 Services Global footprint LaSalle • Capital Markets 2018 fee revenue of ~$6.5 Asia Pacific $6,487 • Leasing billion, over 90,000 colleagues EMEA • Property and Facility serve clients in over 80 Americas
Slide 15: Capital Markets
Capital Markets Highlights JLL Capital Markets fee revenue ($ in millions) Services Accretive investments Asia Pacific Reflects ASC 606 • Investment sales • Gains across geographies EMEA • Structured finance • Acquisitions add skills and Americas • Private equity placements coverage $1,108 $1,094 •
Slide 16: Leasing
Leasing Reflects ASC 606 JLL Leasing fee revenue Highlights ($ in millions) $2,303 Leasing Asia Pacific $269 • M&A and organic market share growth EMEA $2,001 • Strength in client relationships drives recurring revenue Americas • Tenant Representation, Agency Leasing, and Corporate Solutions $233 $3
Slide 17: Property & Facility Management
Property & Facility Management Highlights Services 2018 key statistics JLL Property & Facilities Management fee revenue Property & Facility Management ($ in millions) Property Management Reflects ASC 606 oversaw ~4.6B square feet On-site management to real globally Asia Pacific estate owners for off
Slide 18: Project & Development Services
Project & Development Services JLL Project and Development Services fee revenue Highlights ($ in millions) Reflects ASC 606 Services Annuity focus Asia Pacific • Conversion management • Double digit growth $799 EMEA • Move management • Multi-year contracts Americas • Leverage market share and • Desi
Slide 19: Advisory, Consulting and Other Services
Advisory, Consulting and Other Services JLL Advisory, Consulting and Other fee revenue Highlights ($ in millions) Services Energy and Sustainability * Asia Pacific • Workspace solutions • 43 sustainability awards won EMEA • Valuations & appraisals Americas Reflects ASC 606 • 465,000 metric ton CO2e
Slide 20: LaSalle Investment Management
LaSalle Investment Management 2006 to 2018 advisory revenue ($ million) Building Advisory Stabilized Global Financial Fees in Advisory Fees Growth Crisis Highlights Healthy Markets $300 $278 Proven performance $261 $265 $245 $245 $253 $6.1B $242 $238 $243 • Long-standing client $250 $228 $236 $223 r
Slide 21: ASC 606 Overview
ASC 606 Overview Since May 2014, the Financial Accounting Standards Board (“FASB”) has issued multiple accounting standards updates that comprise and amend ASC Topic 606 (“ASC 606”), Revenue from Contracts with Customers. ASC 606 replaces most U.S. GAAP revenue recognition guidance and requires an e
Slide 22: Reconciliation of GAAP to non-GAAP
Reconciliation of GAAP to non-GAAP Net Income to Adjusted EBITDA Twelve months ended Twelve months ended Twelve months ended Dec 31 Dec 31 Dec 31 ($ in millions) 2016 2017 2018 GAAP net income attributable to common shareholders $ 329.3 $ 276.0 $484.1 Interest expense, net of interest income 45.3 56
Slide 23: 2014-2018 Fee revenue/fee-based operating expenses reconciliation
2014-2018 Fee revenue/fee-based operating expenses reconciliation • Gross accounting requirements increase revenue and costs without corresponding increase to profit • Reimbursable vendor, subcontractor and out-of-pocket costs reported as revenue and expense in JLL financial statements have been inc
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
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