Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q3 2020 Earnings Presentation
26 slides from Jones Lang Lasalle's earnings presentation, Nov 2, 2020
Slide 1: Earnings Presentation Third Quarter 2020
Earnings Presentation Third Quarter 2020 11/02/2020
Slide 2: 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
Slide 3: Consolidated Third Quarter 2020 Financial Results
Consolidated Third Quarter 2020 Financial Results Growth rates and margins in local currency; growth rates represent % change over three and nine months ended Q3 2019 Revenue Fee Revenue Adjusted EBITDA Q3 2020 YTD 2020 Q3 2020 YTD 2020 Q3 2020 YTD 2020 $4.0B $11.7B $1.4B $4.2B $244M $443M (12)%
Slide 4: Q3 2020 Strategic Review and Key Highlights
Q3 2020 Strategic Review and Key Highlights Leadership in adapting Strong cash generation Prudent cost Corporate Solutions to COVID-19 and debt repayment management resiliency • Resilient earnings and • Ongoing alignment of cost • Demonstrates the strength • Guiding our clients to re- of globally-di
Slide 5: Q3 2020 Macroeconomic and Real Estate Operating Environment
Q3 2020 Macroeconomic and Real Estate Operating Environment • COVID-19 has served as the ultimate accelerant, Global Macroeconomy speeding up many trends evident before the pandemic and pushing businesses toward change • Economic growth rebounded during Q3 • Office markets continue to face pandemic-
Slide 6: Reimagined Framework for Hybrid Workplace Environment
Reimagined Framework for Hybrid Workplace Environment Business People Workplace Corporate Real Strategy Strategy Strategy Estate Strategy Reimagine Work Reconnect Experiences Redefine & Redesign Workspaces Reposition the CRE Portfolio Develop new frameworks to drive Optimizing human performance and
Slide 7: JLL Uniquely Positioned to Lead Commercial Real Estate Evolution
JLL Uniquely Positioned to Lead Commercial Real Estate Evolution • Global and integrated platform with a talented workforce • Dedication to providing world-class results for our clients and communities JLL Capabilities • Market leading position and on-the-ground global presence enable strategic insi
Slide 8: Financial Overview
@JLL Financial Overview
Slide 9: Q3 2020 Financial Results – Segment Revenue
Q3 2020 Financial Results – Segment Revenue ($ in millions; % change in local currency over three and nine months ended Q3 2019) Q3 2020 Revenue Q3 2020 Fee Revenue YTD 2020 Revenue YTD 2020 Fee Revenue Americas $2,381 $774 $7,133 $2,375 (11)% (26)% (3)% (9)% EMEA $744 $325 $2,126 $903 (17)% (
Slide 10: Q3 2020 Financial Results – Segment Profitability
Q3 2020 Financial Results – Segment Profitability ($ in millions; % change, Adjusted EBITDA Margin and corresponding change in bps in local currency over three and nine months ended Q3 2019) Q3 2020 Adjusted Q3 2020 Adjusted EBITDA YTD 2020 Adjusted YTD 2020 EBITDA Margin EBITDA Adjusted EBITDA Marg
Slide 11: Q3 2020 Adjusted EBITDA Margin Performance
Q3 2020 Adjusted EBITDA Margin Performance LaSalle: RES Organic: RES M&A: RES Investments: Reflects strong annuity earnings Driven by Fee Revenue declines Q3 2019 disposition of Property Reflects continued investment in offset by declines in incentive fees across all geographic segments Asset Manage
Slide 12: Q3 2020 Real Estate Services Fee Revenue by Service Line
Q3 2020 Real Estate Services Fee Revenue by Service Line ($ in millions; % change over Q3 2019) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $314 (32)% (32)% $57 (20)% (24)% $43 (24)% (25)% $413 (30)% (30)% Capital Markets $
Slide 13: YTD 2020 Real Estate Services Fee Revenue by Service Line
YTD 2020 Real Estate Services Fee Revenue by Service Line ($ in millions; % change over YTD 2019) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $986 (25)% (25)% $149 (20)% (19)% $97 (36)% (36)% $1,232 (26)% (25)% Capital Mark
Slide 14: Q3 2020 Fee Revenue Performance Drivers
Q3 2020 Fee Revenue Performance Drivers (% change over Q3 2019) Organic Growth M&A Contribution YoY Growth USD Currency Impact LC LC Americas (26)% (26)% —% —% EMEA (19)% (20)% (2)% 3% APAC (19)% (20)% —% 1% Total RES (23)% (24)% —% 1% LaSalle —% (2)% —% 2% Consolidated (22)% (22)% —% 1% Notes: • Re
Slide 15: YTD 2020 Fee Revenue Performance Drivers
YTD 2020 Fee Revenue Performance Drivers (% change over YTD 2019) Organic Growth M&A Contribution YoY Growth USD Currency Impact LC LC Americas (9)% (17)% 9% —% EMEA (18)% (15)% (2)% —% APAC (19)% (17)% —% (1)% Total RES (13)% (17)% 5% (1)% LaSalle (7)% (7)% —% —% Consolidated (13)% (16)% 4% (1)% No
Slide 16: LaSalle – Third Quarter 2020 Performance
LaSalle – Third Quarter 2020 Performance Fee Revenue in $M Adjusted EBITDA in $M Third Quarter Overview 106 106 Fee Revenue Decreased by 2% (in LC) 37 31 • Solid advisory and transaction fees growth offset by a decline in incentive fees Adjusted EBITDA impacted largely by decline in equity earnings
Slide 17: Balance Sheet and Capital Allocation
Balance Sheet and Capital Allocation Highlights: • Strong balance sheet with sufficient liquidity provides operational flexibility Investment Grade Credit Ratings • Prioritized debt repayment: credit facility stands at 15% utilization; $320 million in net Moody’s: Baa1 debt reduction during Q3, belo
Slide 18: Appendix and Supplemental Material
Appendix and Supplemental Material
Slide 19: Q3 2020 JLL Research Market Performance Summary
Q3 2020 JLL Research Market Performance Summary Americas EMEA APAC Global Gross Leasing Volumes (square footage – volumes relate to the office sector) Q3 2020 (55)% (52)% (5)% (46)% (vs Q3 2019) YTD 2020 (vs YTD (50)% (43)% (25)% (43)% 2019) Direct Commercial Real Estate Investment Sales Volumes ($
Slide 20: Q3 2020 Real Estate Services Revenue by Service Line
Q3 2020 Real Estate Services Revenue by Service Line ($ in millions; % change over Q3 2019) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $325 (31)% (31)% $59 (19)% (22)% $47 (22)% (22)% $430 (29)% (29)% Capital Markets $191
Slide 21: YTD 2020 Real Estate Services Revenue by Service Line
YTD 2020 Real Estate Services Revenue by Service Line ($ in millions; % change over YTD 2019) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $1,022 (25)% (24)% $153 (19)% (19)% $106 (34)% (33)% $1,281 (25)% (25)% Capital Marke
Slide 22: Fee Revenue / Fee-based Operating Expenses Reconciliation
Fee Revenue / Fee-based Operating Expenses Reconciliation Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2020 2019 2020 2019 Revenue $3,978.1 $4,495.6 $11,744.5 $12,582.7 Reimbursements (1,886.7) (1,949.8) (5,591.6) (5,727.1) Revenue before reimbursements 2,091.4 2,
Slide 23: Reconciliation of Net Income to Adjusted Net Income and Diluted EPS
Reconciliation of Net Income to Adjusted Net Income and Diluted Earnings Per Share Three Months Ended September 30, Nine Months Ended September 30, ($ in millions except per share data) 2020 2019 2020 2019 GAAP net income attributable to common shareholders $131.9 $128.9 $152.4 $260.7 Shares (in 000
Slide 24: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income Attributable To Common Shareholders To Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, ($ in millions) 2020 2019 2020 2019 Net income attributable to common shareholders $131.9 $128.9 $152.4 $260.7 Interest expense, net of interest income
Slide 25: 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 26: SLL
SLL