Jones Lang Lasalle Incorporated · NYSE:JLL

Jones Lang Lasalle — Q3 2019 Earnings Presentation

25 slides from Jones Lang Lasalle's earnings presentation, Nov 5, 2019

  1. Slide 1: Supplemental Information 3rd Quarter 2019 Earnings

    Supplemental Information 3rd Quarter 2019 Earnings November 5, 2019

  2. Slide 2: Global real estate market overview

    Global real estate market overview 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 leasin

  3. Slide 3: Global real estate market performance & outlook

    Global real estate market performance & outlook Americas EMEA APAC Global Gross Leasing Volumes (square footage) Q3 2019 (6)% 5% (21)% (5)% YTD 2019 (3)% 5% (19)% (4)% FY 2019 Flat to (5%) Flat to (5%) (15)% (5)% Outlook Direct Commercial Real Estate Investment Sales Volumes ($) Q3 2019 22% (1)% 18%

  4. Slide 4: Q3 2019 consolidated summary financial results

    Q3 2019 consolidated summary financial results Consolidated Real Estate Services LaSalle $1,815 Fee Revenue ($M) $1,591 $1,710 $1,423 $106 $168 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 $300 $263 Adj EBITDA ($M) $234 $175 $37 $59 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 34.5% 35.2% Adj

  5. Slide 5: Consolidated adjusted EBITDA margin performance

    Consolidated adjusted EBITDA margin performance Positive RES organic growth RES M&A LaSalle Strong Americas performance and Primarily reflects margin accretive Anticipated decline in incentive fees continued disciplined cost contribution from HFF partially offset by strong advisory management across

  6. Slide 6: Balance sheet

    Balance sheet Q3 2019 Highlights Balance Sheet ($ in millions) Q3 2019 Q3 2018 • Net debt increase reflects net Cash and Cash $402 $327 cash outflow of $840 related to Equivalents HFF acquisition Short Term Borrowings 100 84 • Cash generation supports debt Credit Facility (1) 1,125 240 repayment Net

  7. Slide 7: HFF acquisition update

    HFF acquisition update • Transformative acquisition completed July 1, 2019 that significantly bolsters full- service Capital Markets business • Increasing the scale of Capital Markets business is a key priority in Beyond strategic vision to drive long-term sustainable and profitable growth • Strong

  8. Slide 8: Segment Details

    Segment Details © 2019 Jones Lang LaSalle IP, Inc. All rights reserved.

  9. Slide 9: Q3 2019 Real Estate Services summary results

    Q3 2019 Real Estate Services summary results Americas EMEA Asia Pacific $1,044 Fee Revenue ($M) $774 $401 $397 $265 $252 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Adj EBITDA ($M) $201 $124 $25 $23 $38 $28 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Adj EBITDA Margin 19.3% 16.0% 14.2% 11.2%

  10. Slide 10: Q3 2019 Real Estate Services fee revenue

    Q3 2019 Real Estate Services fee revenue ($ in millions; % change over Q3 2018) Americas EMEA Asia Pacific Total RES % Change % Change % Change % Change USD LC USD LC USD LC USD LC Leasing $461 12% 12% $71 (9)% (5)% $56 (14)% (12)% $588 6% 6% Capital Markets $309 n.m. n.m. $102 (1)% 4% $48 34% 35% $

  11. Slide 11: LaSalle Investment Management results

    LaSalle Investment Management results Financials Q3 2019 Highlights • Advisory fees drive strong annuity Fee Revenue ($M) $168 $106 earnings foundation • Anticipated decline in fee revenue & Q3 2019 Q3 2018 adjusted EBITDA driven by incentive fees Adj EBITDA ($M) $59 Assets Under Management : $67.8B

  12. Slide 12: Q3 2019 fee revenue growth drivers

    Q3 2019 fee revenue growth drivers Organic M&A YoY Growth Currency Growth Contribution USD Impact LC LC Americas 35% 11% 24% —% EMEA 1% 5% 1% (5)% APAC 5% 7% —% (2)% LaSalle (38)% (41)% 4% (1)% Consolidated 14% 3% 13% (2)% Notes: • Refer to pages 21 - 24 for definitions and reconciliations of non-GA

  13. Slide 13: Appendix

    Appendix © 2019 Jones Lang LaSalle IP, Inc. All rights reserved.

  14. Slide 14: YTD consolidated summary financial results

    YTD consolidated summary financial results Consolidated Real Estate Services LaSalle $4,765 $4,442 Fee Revenue ($M) $4,366 $3,999 $323 $367 YTD 2019 YTD 2018 YTD 2019 YTD 2018 YTD 2019 YTD 2018 Adj EBITDA ($M) $622 $535 $526 $409 $96 $126 YTD 2019 YTD 2018 YTD 2019 YTD 2018 YTD 2019 YTD 2018 Adj EBI

  15. Slide 15: YTD Real Estate Services summary results

    YTD Real Estate Services summary results Americas EMEA Asia Pacific $2,619 Fee Revenue ($M) $2,166 $1,097 $1,135 $726 $698 YTD 2019 YTD 2018 YTD 2019 YTD 2018 YTD 2019 YTD 2018 Adj EBITDA ($M) $431 $320 $79 $63 $16 $27 YTD 2019 YTD 2018 YTD 2019 YTD 2018 YTD 2019 YTD 2018 Adj EBITDA Margin 16.5% 14.

  16. Slide 16: YTD 2019 Real Estate Services fee revenue

    YTD 2019 Real Estate Services fee revenue ($ in millions; % change over YTD 2018) Americas EMEA Asia Pacific Total RES % Change % Change % Change % Change USD LC USD LC USD LC USD LC Leasing $1,318 18% 18% $186 (10)% (4)% $152 (2)% 1% $1,656 12% 13% Capital Markets $533 60% 60% $235 (13)% (8)% $117

  17. Slide 17: YTD 2019 fee revenue growth drivers

    YTD 2019 fee revenue growth drivers Organic M&A YoY Growth Currency Growth Contribution USD Impact LC LC Americas 21% 12% 9% —% EMEA (3)% 2% 1% (6)% APAC 4% 8% —% (4)% LaSalle (12)% (16)% 6% (2)% Consolidated 9% 6% 5% (2)% Notes: • Refer to pages 21 - 24 for definitions and reconciliations of non-GA

  18. Slide 18: YTD 2019 Real Estate Services GAAP revenue

    YTD 2019 Real Estate Services GAAP revenue ($ in millions; % change over YTD 2018) Americas EMEA Asia Pacific Total RES % Change % Change % Change % Change USD LC USD LC USD LC USD LC Leasing $1,354 18% 18% $190 (10)% (5)% $162 (2)% 1% $1,706 12% 13% Capital Markets $553 61% 61% $249 (14)% (9)% $128

  19. Slide 19: Q3 2019 Real Estate Services GAAP revenue

    Q3 2019 Real Estate Services GAAP revenue ($ in millions; % change over Q3 2018) Americas EMEA Asia Pacific Total RES % Change % Change % Change % Change USD LC USD LC USD LC USD LC Leasing $473 11% 12% $72 (10)% (6)% $59 (14)% (13)% $604 5% 6% Capital Markets $323 n.m. n.m. $106 (2)% 2% $51 28% 29%

  20. Slide 20: Fee revenue / fee-based operating expenses reconciliation

    Fee revenue / fee-based operating expenses reconciliation Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2019 2018 2019 2018 Revenue $ 4,495.6 $ 3,969.8 $ 12,582.7 $ 11,428.7 Reimbursements (1,949.8) (1,756.1) (5,727.1) (5,160.6) Revenue before reimbursements 2,545.

  21. Slide 21: Reconciliation of GAAP Net Income to Adjusted Net Income and Diluted Earnings Per Share

    Reconciliation of GAAP Net Income to Adjusted Net Income and Diluted Earnings Per Share Three Months Ended September 30, Nine Months Ended September 30, ($ in millions except per share data) 2019 2018 2019 2018 GAAP net income attributable to common shareholders $ 128.9 $ 134.9 $ 260.7 $ 283.0 Share

  22. Slide 22: Reconciliation of GAAP Net Income to Adjusted EBITDA

    Reconciliation of GAAP Net Income attributable to common shareholders to Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2019 2018 2019 2018 GAAP net income attributable to common shareholders $ 128.9 $ 134.9 $ 260.7 $ 283.0 Interest expense, net of i

  23. Slide 23: 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

  24. Slide 24: 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, objectives and dividend payments may be considered forward-looking statements within the meaning of the Private Securitie

  25. Slide 25: © 2019 Jones Lang LaSalle IP, Inc. All rights reserved.

    © 2019 Jones Lang LaSalle IP, Inc. All rights reserved.

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