Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q4 2024 Earnings Presentation
31 slides from Jones Lang Lasalle's earnings presentation, Feb 19, 2025
Slide 1: Earnings Presentation Fourth Quarter 2024
Earnings Presentation Fourth Quarter 2024 14.88 February 19, 2025
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 share repurchases may be considered forward-looking statements within the meaning of the Private Securitie
Slide 3: Fourth quarter 2024 industry highlights
Fourth quarter 2024 industry highlights
Slide 4: Capital markets industry highlights
Capital markets industry highlights Benchmark yields, 2006 – December 2024 Real estate investment volumes by region, 2007 – 2024 Direct investment volumes (US$ billion) 7% 1M SOFR 10-year Treasury 1,400 Euro Area 10-year Government Bond Yields Asia 10-year Government Bond Yields 1,274 6% Asia Pacifi
Slide 5: Capital markets industry trends
Capital markets industry trends Dry powder in closed-end funds, 2007 – H1 2024 Quarterly investment volumes by sector, Q4 2021 – Q4 2024 $684 200 $630 $642 175 $573 $600 Living / Multi-housing Industrial & Logistics Office 600 $549 150 Retail Hotels & Hospitality US$ Billions US$ Billions 125 400 10
Slide 6: Office leasing industry highlights
Office leasing industry highlights Global office leasing volumes by region, 2007 – 2024 Rental growth for prime office assets, annual 50 25% U.S. Europe Asia Pacific 20.9% 41 20% Rental change (q-o-q %) 40 36 15% 36 33 10% millions sqm 32 30 26 5% 3.1% 2.9% 0.1% 0% 20 -0.2% -5% -2.6% 10 10 -10% 10 9
Slide 7: Industrial leasing industry highlights
Industrial leasing industry highlights North America Gross Leasing Europe Gross Leasing Asia Pacific Net Absorption 8 5 21 +2% 18 -4% 6 Millions sqm 15 -28% 12 4 4 9 6 2 3 0 0 3 5-year Q4 Avg Q4 2023 Q4 2024 5-year Q4 Avg Q4 2023 Q4 2024 5-year Q4 Avg Q4 2023 Q4 2024 (2019-2023) (2019-2023) (2019-20
Slide 8: Consolidated financials
Consolidated financials @ ILL SEE A BRIGHTER WAY
Slide 9: Consolidated fourth quarter 2024 financial results
Consolidated fourth quarter 2024 financial results Growth rates represent % change over Q4 2023 ’24/’23 % Chg. Q4 2024 Q4 2023 ’24/’23 % Chg. USD Local Currency Revenue $6,811M $5,881M 16% 16% Gross Contract Costs $4,283M $3,710M 15% 16% Platform operating expenses $2,136M $1,860M 15% 15
Slide 10: Consolidated YTD 2024 financial results
Consolidated YTD 2024 financial results Growth rates represent % change over twelve months ended Q4 2023 ’24/’23 % Chg. Q4 2024 YTD Q4 2023 YTD ’24/’23 % Chg. USD Local Currency Revenue $23,433M $20,761M 13% 13% Gross Contract Costs $15,391M $13,376M 15% 15% Platform operating expenses $7,15
Slide 11: Business segments results
Business segments results @ ILL SEE A BRIGHTER WAY
Slide 12: Fourth quarter 2024 financial results – Business segments
Fourth quarter 2024 financial results – Business segments $M. Growth rates in local currency; represent % change over Q4 2023 Segment Platform Revenue Gross Contract Costs Adjusted EBITDA Operating Expenses Markets $1,328 $331 $844 $171 Advisory 11% 10% 12% 7% Capital $706 $12 $586 $120 Mark
Slide 13: YTD 2024 financial results – Business segments
YTD 2024 financial results – Business segments $M. Growth rates in local currency; represent % change over twelve months ended Q4 2023 Segment Platform Revenue Gross Contract Costs Adjusted EBITDA Operating Expenses Markets $4,501 $1,270 $2,751 $548 Advisory 9% 11% 5% 31% Capital $2,040 $49
Slide 14: Markets Advisory
Markets Advisory Growth rates represent % change over Q4 2023 Revenue Segment Adjusted EBITDA $M $M $1,328 $171 $1,197 $37 $161 $34 $477 $446 $718 $814 +11% +7% local currency local currency Q4 2023 Q4 2024 Q4 2023 Q4 2024 Leasing Property Management Advisory, Consulting and Other Gross contract cos
Slide 15: Capital Markets
Capital Markets Growth rates represent % change over Q4 2023 Revenue Segment Adjusted EBITDA $706 $M $40 $M $120 $537 $111 $38 $108 $76 $555 $391 +32% +60% local currency local currency Q4 2023 Axis Title Q4 2024 Q4 2023 Q4 2024 Investment Sales, Debt/Equity Advisory Value and Risk Advisory Loan Ser
Slide 16: Work Dynamics
Work Dynamics Growth rates represent % change over Q4 2023 Revenue Segment Adjusted EBITDA $M $M $4,557 $3,966 $148 $121 $120 $149 $936 $798 $3,472 $3,019 +15% –% local currency local currency Q4 2023 Q4 2024 Q4 2023 Q4 2024 Workplace Management Project Management Portfolio Services and Other Gross
Slide 17: JLL Technologies
JLL Technologies Growth rates represent % change over Q4 2023 Revenue Segment Adjusted EBITDA $M $M $66 $59 $6 $2 (9%) (72%) local currency local currency Q4 2023 Q4 2024 Q4 2023 Q4 2024 Gross contract costs: $4 $2 Fourth Quarter Highlights • JLL Technologies revenue declined 9% local currency / USD
Slide 18: LaSalle
LaSalle Growth rates represent % change over Q4 2023 Revenue Segment Adjusted EBITDA $M $M $161 $43 $115 $56 $8 $7 $9 $20 $100 $96 +42% +120% local currency local currency Q4 2023 Q4 2024 Q4 2023 Q4 2024 Advisory Fees Transaction Fees and Other Incentive Fees Gross contract costs: $7 $11 Fourth Quar
Slide 19: Capital allocation, balance sheet, and cash flow
Capital allocation, balance sheet, and cash flow
Slide 20: Debt and leverage
Debt and leverage Highlights: Investment Grade Credit Ratings Moody’s: Baa1 • Strong balance sheet with ample liquidity provides operational flexibility S&P: BBB+ • Both sequential quarter and year-over-year decreases in net debt are largely a result of positive cash flow from operations $3.30B Cred
Slide 21: Return of capital to shareholders
Return of capital to shareholders $700 52,000 $600 51,550 51,000 51,105 $601 $500 50,000 50,024 Shares in 000s US$ Millions $400 49,000 $300 $343 48,000 $200 47,508 47,510 47,416 47,000 $100 46,000 $100 $43 $62 $80 $0 45,000 2019 2020 2021 2022 2023 2024 Dividend Share Repurchase Shares Outstanding
Slide 22: Free Cash Flow
Free Cash Flow ($ in millions) $1,100 $900 $700 $500 $965 $797 $300 $600 $389 $100 ($6) -$100 2020 2021 2022 2023 2024 FCF Conversion: 194% 93% (1%) 78% 89% Highlights • 2024 Free Cash Flow (FCF) improved $211 million vs 2023 driven primarily by (i) higher cash provided by earnings, (ii) higher comm
Slide 23: Financial targets
Financial targets @ ILL SEE A BRIGHTER WAY
Slide 24: 2025 Financial Targets
2025 Financial Targets 2025 Consolidated Financial Targets Adjusted EBITDA $1,250-$1,450M 24 | © 2025 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 25: Supplemental materials and non-GAAP reconciliations
Supplemental materials and non-GAAP reconciliations
Slide 26: Changes in reporting
Changes in reporting • As announced in September 2024, Property Management will move out of Markets Advisory, effective January 1, 2025. • With the realignment, effective January 1, 2025, Markets Advisory will become Leasing Advisory and Work Dynamics will become Real Estate Management Services. • C
Slide 27: Reconciliation of net income to adjusted net income and adjusted diluted EPS
Reconciliation of net income to adjusted net income and adjusted diluted earnings per share Three Months Ended Dec 31 Twelve Months Ended Dec 31 ($M except per share data) 2024 2023 2024 2023 Net income attributable to common shareholders $241.2 $172.4 $546.8 $225.4 Shares (in 000s) 48,534 48,324 48
Slide 28: Reconciliation of net income to adjusted EBITDA
Reconciliation of net income attributable to common shareholders to adjusted EBITDA Three Months Ended Dec 31 Twelve Months Ended Dec 31 ($M) 2024 2023 2024 2023 Net income attributable to common shareholders $241.2 $172.4 $546.8 $225.4 Interest expense, net of interest income 26.6 31.5 136.9 135.4
Slide 29: Reconciliation of net cash from operating activities to Free Cash Flow
Reconciliation of net cash provided by operating activities to Free Cash Flow Twelve Months Ended Dec 31 ($M) 2024 2023 2022 2021 2020 Net cash provided by operating activities $785.3 $575.8 $199.9 $972.4 $114.7 Net capital additions – property and equipment (185.5) (186.9) (205.8) (175.9) (149.4) F
Slide 30: 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 31: 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