Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q2 2022 Earnings Presentation
25 slides from Jones Lang Lasalle's earnings presentation, Aug 3, 2022
Slide 1: Earnings Presentation Second Quarter 2022
Earnings Presentation Second Quarter 2022 August 3, 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: Second quarter highlights
Second quarter highlights
Slide 4: Office leasing industry highlights
Office leasing industry highlights Global office leasing volumes by region, 2007 – YTD Q2 2022 Rental growth for prime office assets - quarterly 45 6% 40 4% Rental change (q-o-q %) 35 2% 30 Millions sqm 0% 25 -2% 20 -4% 15 10 -6% 5 -8% 0 -10% Americas EMEA Asia Pacific Second Quarter Highlights • Al
Slide 5: Capital markets industry highlights
Capital markets industry highlights Real estate investment volumes by region, 2007 – YTD Q2 2022 Real estate investment volumes by sector, H1 2021 vs H1 2022 $1,400 Residential 28% $1,200 Office 11% $1,000 US$ Billions US$ Billions Industrial 4% $800 Retail 40% $600 $400 Hotels 42% $200 He
Slide 6: Consolidated financials
Consolidated financials
Slide 7: Consolidated second quarter 2022 financial results
Consolidated second quarter 2022 financial results Growth rates and margins in local currency; growth rates represent % change over three months ended Q2 2021 Q2 2022 Q2 2021 ’22/’21 % Chg. Revenue $5.3B $4.5B 21% Fee Revenue $2.1B $1.8B 23% Operating Income $235M $224M 6% Operating Income Mar
Slide 8: Business segments results
Business segments results —- ——
Slide 9: Second quarter 2022 financial results – Business segments
Second quarter 2022 financial results – Business segments $M. Growth rates and margins in local currency; growth rates represent % change over three months ended Q2 2022 Revenue Fee Revenue Adjusted EBITDA Adjusted EBITDA Margin Markets $1,118 $856 $134 15.6% Advisory 20% 23% 20% 40 bps Capi
Slide 10: Markets Advisory
Markets Advisory Growth rates and margins in local currency; growth rates represent % change over three months ended Q2 2021 Fee Revenue Adjusted EBITDA $M $856 $M, % of fee revenue $30 $134 $711 $28 $122 $114 $115 $704 $569 16.0% 15.6% Q2 2021 Q2 2022 Q2 2021 Q2 2022 Leasing Property Management Adv
Slide 11: Capital Markets
Capital Markets Growth rates and margins in local currency; growth rates represent % change over three months ended Q2 2021 Fee Revenue Adjusted EBITDA $M $661 $40 $M, % of fee revenue $121 $127 $534 $31 $92 $90 $528 $413 22.6% 19.1% Q2 2021 Q2 2022 Q2 2021 Q2 2022 Second Quarter Highlights • Fee re
Slide 12: Work Dynamics
Work Dynamics Growth rates and margins in local currency; growth rates represent % change over three months ended Q2 2021 Fee Revenue Adjusted EBITDA $M $M, % of fee revenue $467 $58 $409 $51 $67 $59 $215 $185 $165 $185 12.5% 11.9% Q2 2021 Q2 2022 Q2 2021 Q2 2022 Workplace Management Project Managem
Slide 13: JLL Technologies
JLL Technologies Growth rates and margins in local currency; growth rates represent % change over three months ended Q2 2021 Fee Revenue Adjusted EBITDA $M $M, % of fee revenue $13 $48 $33 (4.6%) 25.7% ($2) Q2 2021 Q2 2022 Q2 2021 Q2 2022 Second Quarter Highlights • Fee revenue grew 48%, including 2
Slide 14: LaSalle
LaSalle Growth rates and margins in local currency; growth rates represent % change over three months ended Q2 2021 Fee Revenue Adjusted EBITDA $M $M, % of fee revenue $109 $107 $15 $1 $8 $48 $8 $28 $98 $85 44.2% 24.3% Q2 2021 Q2 2022 Q2 2021 Q2 2022 Advisory Fees Transaction Fees Incentive Fees Sec
Slide 15: Capital allocation and balance sheet
Capital allocation and balance sheet
Slide 16: Debt and leverage
Debt and leverage Highlights: Investment Grade Credit Ratings • Strong balance sheet with ample liquidity provides operational flexibility Moody’s: Baa1 • Net debt increase primarily attributable to higher annual incentive compensation payments and S&P: BBB+ share repurchases Debt and leverage ($M)
Slide 17: Return of capital to shareholders
Return of capital to shareholders $M $448 $343 $100 $38 $43 2018 2019 2020 2021 H1 2022 Dividend Share Repurchase Highlights • Strong balance sheet and meaningful free cash flow provide flexibility to both invest in the business and return cash to shareholders • Trailing twelve-month share repurchas
Slide 18: Supplemental materials & non-GAAP reconciliations
Supplemental materials & non-GAAP reconciliations
Slide 19: Consolidated YTD 2022 financial results
Consolidated YTD 2022 financial results Growth rates and margins in local currency; growth rates represent % change over six months ended Q2 2021 H1 2022 H1 2021 ’22/’21 % Chg. Revenue $10.1B $8.5B 21% Fee Revenue $4.0B $3.2B 29% Operating Income $411M $305M 37% Operating Income Margin 10.1% 9
Slide 20: YTD 2022 financial results – Business segments
YTD 2022 financial results – Business segments $M. Growth rates and margins in local currency; growth rates represent % change over six months ended Q2 2022 Revenue Fee Revenue Adjusted EBITDA Adjusted EBITDA Margin Markets $2,118 $1,597 $245 15.3% Advisory 24% 29% 38% 110 bps Capital $1,285
Slide 21: Fee revenue / fee-based operating expenses reconciliation
Fee revenue / fee-based operating expenses reconciliation Three Months Ended June 30 Six Months Ended June 30 ($M) 2022 2021 2022 2021 Revenue $5,278.4 $4,495.0 $10,079.8 $8,532.1 Gross contract costs (3,128.4) (2,695.0) (6,032.9) (5,297.9) Net non-cash MSR and mortgage banking derivative activity (
Slide 22: Reconciliation of net income to adjusted net income and adjusted diluted EPS
Reconciliation of net income to adjusted net income and adjusted diluted earnings per share Three Months Ended June 30 Six Months Ended June 30 ($M except per share data) 2022 2021 2022 2021 Net income attributable to common shareholders $193.9 $200.0 $339.5 $303.0 Shares (in 000s) 49,651 52,324 50,
Slide 23: Reconciliation of net income to adjusted EBITDA
Reconciliation of net income attributable to common shareholders to adjusted EBITDA Three Months Ended June 30 Six Months Ended June 30 ($M) 2022 2021 2022 2021 Net income attributable to common shareholders $193.9 $200.0 $339.5 $303.0 Interest expense, net of interest income 15.7 10.6 25.9 21.0 Pro
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
Slide 25: 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