Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q4 2020 Earnings Presentation
27 slides from Jones Lang Lasalle's earnings presentation, Feb 9, 2021
Slide 1: Earnings Presentation Fourth Quarter 2020
Earnings Presentation Fourth Quarter 2020 02/09/2021
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 Fourth Quarter & Full Year 2020 Financial Results
Consolidated Fourth Quarter & Full Year 2020 Financial Results Growth rates and margins in local currency; growth rates represent % change over three and twelve months ended Q4 2019 Revenue Fee Revenue Adjusted EBITDA Q4 2020 FY 2020 Q4 2020 FY 2020 Q4 2020 FY 2020 $4.8B $16.6B $2.0B $6.1B $417M $86
Slide 4: 2020 Strategic Review and Key Highlights
2020 Strategic Review and Key Highlights Realizing benefits Judicious capital Prudent cost Leadership in Organizational from tech allocation strategy management sustainability redesign investments • Leveraged tech • Clarified capital • Ongoing alignment • Dedicating • Appointment of new investments
Slide 5: Q4 2020 Macroeconomic and Real Estate Operating Environment
Q4 2020 Macroeconomic and Real Estate Operating Environment • Direct commercial real estate investment totaled Global Macroeconomy $267 billion in the quarter, down 21% from Q4 2019 • COVID-19 pandemic triggered an • Global office leasing activity declined 43% unprecedented human and economic crisis
Slide 6: Reimagined Framework for Hybrid Workplace Environment
Reimagined Framework for Hybrid Workplace Environment Business People Workplace Corporate Real Strategy Strategy Strategy Estate Strategy Reimagine Work Reconnect Experiences Redefine & Redesign Workspaces Reposition the CRE Portfolio Develop new frameworks to drive Optimizing human performance and
Slide 7: Disciplined Approach to Capital Allocation
Disciplined Approach to Capital Allocation Invest To Drive Future Growth Category Objective Measurement Generate organic growth through technology Investments innovation, new products & services, and LaSalle co-investment • Target consolidated 12%+ ROIC1 M&A Pursue value accretive acquisitions Maint
Slide 8: JLL Uniquely Positioned to Lead Commercial Real Estate Evolution
JLL Uniquely Positioned to Lead Commercial Real Estate Evolution • Global and integrated platform with a talented workforce • Dedication to providing world-class results for our clients and communities JLL Capabilities • Market leading position and on-the-ground global presence enable strategic insi
Slide 9: Financial Overview
Financial Overview @JLL
Slide 10: Q4 and Full Year 2020 Financial Results – Segment Revenue
Q4 and Full Year 2020 Financial Results – Segment Revenue ($ in millions; % change in local currency over three and twelve months ended Q4 2019) Q4 2020 Revenue Q4 2020 Fee Revenue FY 2020 Revenue FY 2020 Fee Revenue Americas $2,872 $1,077 $10,005 $3,453 (9)% (16)% (5)% (11)% $967 $476 $3,093 $1
Slide 11: Q4 and Full Year 2020 Financial Results – Segment Profitability
Q4 and Full Year 2020 Financial Results – Segment Profitability ($ in millions; % change, Adjusted EBITDA Margin and corresponding change in bps in local currency over three and twelve months ended Q4 2019) Q4 2020 Adjusted Q4 2020 Adjusted EBITDA FY 2020 Adjusted FY 2020 EBITDA Margin EBITDA Adjust
Slide 12: Q4 2020 Adjusted EBITDA Margin Performance
Q4 2020 Adjusted EBITDA Margin Performance RES: LaSalle: Non-Cash Charges: Investments: Positive margin contribution driven by Reflects substantially lower incentive Represents a partial reversal to loan Incremental investment in JLL cost mitigation efforts and benefit from fees, following an except
Slide 13: FY 2020 Adjusted EBITDA Margin Performance
FY 2020 Adjusted EBITDA Margin Performance RES: LaSalle: Non-Cash Charges: M&A: Investments: Positive margin contribution Reflects substantially lower Changes in co-investment Reflects the slowdown in Incremental investment in driven by cost mitigation incentive fees, following an values and loan lo
Slide 14: Q4 2020 Real Estate Services Fee Revenue by Service Line
Q4 2020 Real Estate Services Fee Revenue by Service Line ($ in millions; % change over Q4 2019) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $418 (30)% (30)% $90 (18)% (23)% $78 (18)% (21)% $586 (27)% (28)% Capital Markets $
Slide 15: FY 2020 Real Estate Services Fee Revenue by Service Line
FY 2020 Real Estate Services Fee Revenue by Service Line ($ in millions; % change over FY 2019) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $1,404 (27)% (26)% $239 (19)% (21)% $175 (29)% (30)% $1,818 (26)% (26)% Capital Mar
Slide 16: FY 2020 Fee Revenue Performance Drivers
FY 2020 Fee Revenue Performance Drivers (% change over FY 2019) YoY Change Organic Change M&A Contribution Currency USD LC LC Impact Americas (11)% (17)% 5% —% EMEA (17)% (17)% (1)% 1% APAC (17)% (17)% —% —% Total RES (14)% (17)% 3% —% LaSalle (20)% (21)% —% 1% Consolidated (14)% (17)% 3% —% Notes:
Slide 17: LaSalle – Fourth Quarter 2020 Performance
LaSalle – Fourth Quarter 2020 Performance Fee Revenue in $M Adjusted EBITDA in $M Fourth Quarter Overview 54 Fee Revenue Decreased by 45% (in LC) 180 • Decline substantially attributable to 101 expected lower incentive fees, following 27 an exceptional 2019 Adjusted EBITDA impacted largely by declin
Slide 18: Balance Sheet
Balance Sheet Highlights: • Strong balance sheet with sufficient liquidity provides operational flexibility Investment Grade Credit Ratings • Prioritized debt repayment in the fourth quarter: reduced net debt by ~$560M Moody’s: Baa1 S&P: BBB+ • Prudent working capital management resulted in strong c
Slide 19: Appendix and Supplemental Material
Appendix and Supplemental Material
Slide 20: Q4 2020 JLL Research Market Performance Summary
Q4 2020 JLL Research Market Performance Summary Americas EMEA APAC Global Gross Leasing Volumes (square footage – volumes relate to the office sector) Q4 2020 (53)% (39)% (25)% (43)% (vs Q4 2019) FY 2020 (vs FY 2019) (47)% (42)% (25)% (42)% Direct Commercial Real Estate Investment Sales Volumes ($ -
Slide 21: Q4 2020 Real Estate Services Revenue by Service Line
Q4 2020 Real Estate Services Revenue by Service Line ($ in millions; % change over Q4 2019) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $429 (29)% (29)% $92 (18)% (22)% $82 (18)% (20)% $603 (26)% (27)% Capital Markets $373
Slide 22: FY 2020 Real Estate Services Revenue by Service Line
FY 2020 Real Estate Services Revenue by Service Line ($ in millions; % change over FY 2019) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $1,451 (26)% (26)% $246 (19)% (20)% $187 (28)% (28)% $1,884 (25)% (25)% Capital Markets
Slide 23: Fee Revenue / Fee-based Operating Expenses Reconciliation
Fee Revenue / Fee-based Operating Expenses Reconciliation Three Months Ended December 31, Year Ended December 31, ($ in millions) 2020 2019 2020 2019 Revenue $4,845.4 $5,400.5 $16,589.9 $17,983.2 Reimbursements (2,098.2) (2,225.5) (7,689.8) (7,952.6) Revenue before reimbursements 2,747.2 3,175.0 8,9
Slide 24: Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted Earnings Per Share
Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted Earnings Per Share Three Months Ended December 31, Year Ended December 31, ($ in millions except per share data) 2020 2019 2020 2019 Net income attributable to common shareholders $250.1 $273.7 $402.5 $534.4 Shares (in 000s) 52
Slide 25: Reconciliation of Net Income Attributable To Common Shareholders To Adjusted EBITDA
Reconciliation of Net Income Attributable To Common Shareholders To Adjusted EBITDA Three Months Ended December 31, Year Ended December 31, ($ in millions) 2020 2019 2020 2019 Net income attributable to common shareholders $250.1 $273.7 $402.5 $534.4 Interest expense, net of interest income 11.0 15.
Slide 26: 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 27: SLL
SLL