Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q4 2021 Earnings Presentation
30 slides from Jones Lang Lasalle's earnings presentation, Feb 28, 2022
Slide 1: Earnings Presentation Fourth Quarter 2021
Earnings Presentation Fourth Quarter 2021 February 28, 2022
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 shares repurchases may be considered forward-looking statements within the meaning of the Private Securiti
Slide 3: Consolidated Fourth Quarter 2021 Financial Results
Consolidated Fourth Quarter 2021 Financial Results Growth rates and margins in local currency; growth rates represent % change over three months ended Q4 2020 and Q4 2019 Q4 2021 Q4 2020 ’21/’20 % Chg. Q4 2019 ’21/’19 % Chg. Revenue $5.9B $4.8B +23% $5.4B +9% Fee Revenue $2.8B $2.0B +42% $2.4B
Slide 4: Consolidated Full Year 2021 Financial Results
Consolidated Full Year 2021 Financial Results Growth rates and margins in local currency; growth rates represent % change over twelve months ended Q4 2020 and Q4 2019 FY 2021 FY 2020 ’21/’20 % Chg. FY 2019 ’21/’19 % Chg. Revenue $19.4B $16.6B +15% $18.0B +6% Fee Revenue $8.1B $6.1B +31% $7.1B
Slide 5: 2021 Strategic Review and Key Highlights
2021 Strategic Review and Key Highlights Drove Strong Disciplined Benefiting From Accelerated Momentum Across Adherence to Technology Sustainability Business Capital Allocation Investments Leadership Framework • Broad-based recovery • Reinvesting to drive • Realized significant • Committed to net ze
Slide 6: Q4 2021 Commercial Real Estate Operating Environment
Q4 2021 Commercial Real Estate Operating Environment • Global capital markets transaction volumes totaled $469 billion during the quarter, up 55% year-over-year. The emergence of Omicron brings ongoing uncertainty, but pandemic’s impact on real estate capital flows is increasingly limited • Global i
Slide 7: Financial Overview
Financial Overview @JLL
Slide 8: Q4 2021 Financial Results – Segment Revenue
Q4 2021 Financial Results – Segment Revenue ($ in millions; % change in local currency over three and twelve months ended Q4 2020) Q4 2021 Q4 2021 FY 2021 FY 2021 Revenue Fee Revenue Revenue Fee Revenue Americas $3,659 $1,678 $11,887 $4,876 +27% +56% +18% +41% $1,122 $574 $3,478 $1,644 EMEA +18
Slide 9: Q4 2021 Financial Results – Segment Profitability
Q4 2021 Financial Results – Segment Profitability ($ in millions; % change, Adjusted EBITDA Margin and corresponding change in bps in local currency over three and twelve months ended Q4 2020) Q4 2021 Q4 2021 FY 2021 FY 2021 Adjusted EBITDA Adjusted EBITDA Margin Adjusted EBITDA Adjusted EBITDA Marg
Slide 10: Q4 2021 Adjusted EBITDA Margin Performance
Q4 2021 Adjusted EBITDA Margin Performance Real Estate Services (“RES”): LaSalle: JLL Technologies: Notable Discrete Items: Reflected strong growth in Leasing and Positive margin contribution attributable to Reflected equity earnings associated with Impact of reduction to loan loss reserve in Capita
Slide 11: FY 2021 Adjusted EBITDA Margin Performance
FY 2021 Adjusted EBITDA Margin Performance Real Estate Services (“RES”): LaSalle: JLL Technologies: Notable Discrete Items: Reflected strong growth in Leasing and Positive margin contribution attributable to Reflected equity earnings associated with Reflects reduction in loan loss reserve Capital Ma
Slide 12: Q4 2021 Real Estate Services Fee Revenue by Service Line
Q4 2021 Real Estate Services Fee Revenue by Service Line ($ in millions; % change over Q4 2020) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $725 74% 74% $134 49% 55% $115 46% 49% $974 66% 68% Capital Markets $575 75% 75% $1
Slide 13: FY 2021 Real Estate Services Fee Revenue by Service Line
FY 2021 Real Estate Services Fee Revenue by Service Line ($ in millions; % change over FY 2020) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $2,132 52% 52% $331 38% 36% $250 43% 40% $2,713 49% 48% Capital Markets $1,463 66%
Slide 14: LaSalle – Fourth Quarter 2021 Performance
LaSalle – Fourth Quarter 2021 Performance Fee Revenue in $M Adjusted EBITDA in $M Fourth Quarter Overview Fee Revenue increased by 56% (in LC) 156 51 • Revenue growth driven by: 101 • Strong advisory fee growth resulting 27 from recent capital raising and valuation increases • Incentive fees perform
Slide 15: Debt and Leverage
Debt and Leverage Highlights: • Strong balance sheet with ample liquidity provides operational flexibility Investment Grade Credit Ratings • Strong cash generation supports strategic capital deployment Moody’s: Baa1 S&P: BBB+ Debt and Leverage ($M) Q4 2021 Q4 2020 $275M, 4.4% fixed Cash and Cash Equ
Slide 16: Investments Rollforward
Investments Rollforward ($ in millions) $800 $209 $3 $746 $6 $38 $700 $63 $600 $141 $102 ($4) ($14) $355 $500 $431 $120 $400 $37 $300 $300 $200 $354 $100 $94 $0 2020 Net Investment Equity Earnings FX/Other 2021 JLL Technologies/Spark LaSalle Other 16
Slide 17: Historical Capital Allocation
Historical Capital Allocation ($ in millions) $2,250 $2,000 $1,750 $1,500 $1,250 $1,000 $750 $500 $250 $0 -$250 2017 2018 2019 2020 2021 M&A Capex Investments, Net Dividends/Share Repurchases Free Cash Flow Notes: • M&A includes total M&A financed plus payments of deferred acquisition obligation and
Slide 18: Reporting Change
Reporting Change @JLL
Slide 19: Moving to Five Business Lines for Reporting Segments
Moving to Five Business Lines for Reporting Segments • As part of our Beyond strategy, we have aligned to global Business Lines that will serve as our new external reporting segments New Reporting Segments: • This evolution is another step in our transformation to better leverage the strength of
Slide 20: JLL's New External Reporting Business Segments
JLL’s New External Reporting Business Segments Markets Capital Work Segments Business JLL LaSalle Advisory Markets Dynamics Technologies (No Change) • Leasing • Investment Sales • Workplace • Software Management (1) • Advisory • Property • Debt & Equity Services • Professional Management Advisory •
Slide 21: Changes in reporting
Changes in reporting • New reporting segments effective January 1, 2022 and first reporting quarter in Q1 2022 • Discontinue geographic segment reporting going forward Previous New Leasing Capital Markets Markets Advisory Property & Facility Management Property Management Facilities Management Capit
Slide 22: Appendix and Supplemental Material
Appendix and Supplemental Material
Slide 23: Q4 2021 JLL Research Market Performance Summary
Q4 2021 JLL Research Market Performance Summary Americas EMEA APAC Global Gross Office Leasing Volumes (square footage – volumes relate to the office sector) Q4 2021 +59% +40% +56% +51% (vs Q4 2020) Q4 2021 (23)% (12)% +7% (13)% (vs Q4 2019) FY 2021 +15% +27% +28% +21% (vs FY 2020) Direct Commercial
Slide 24: Q4 2021 Real Estate Services Revenue by Service Line
Q4 2021 Real Estate Services Revenue by Service Line ($ in millions; % change over Q4 2020) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $737 72% 72% $138 50% 56% $120 47% 49% $995 65% 66% Capital Markets $592 59% 59% $189 4
Slide 25: FY 2021 Real Estate Services Revenue by Service Line
FY 2021 Real Estate Services Revenue by Service Line ($ in millions; % change over FY 2020) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $2,179 50% 50% $347 41% 39% $268 43% 40% $2,794 48% 47% Capital Markets $1,526 60% 60%
Slide 26: Fee Revenue / Fee-based Operating Expenses Reconciliation
Fee Revenue / Fee-based Operating Expenses Reconciliation Three Months Ended December 31, Twelve Months Ended December 31, ($ in millions) 2021 2020 2021 2020 Revenue $5,945.7 $4,845.1 $19,367.0 $16,589.9 Reimbursements (2,342.1) (2,098.2) (8,321.4) (7,689.8) Revenue before reimbursements 3,603.6 2,
Slide 27: Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted EPS
Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted Earnings Per Share Three Months Ended December 31, Twelve Months Ended December 31, ($ in millions except per share data) 2021 2020 2021 2020 Net income attributable to common shareholders $421.4 $250.1 $961.6 $402.5 Shares (in
Slide 28: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income Attributable To Common Shareholders To Adjusted EBITDA Three Months Ended December 31, Twelve Months Ended December 31, ($ in millions) 2021 2020 2021 2020 Net income attributable to common shareholders $421.4 $250.1 $961.6 $402.5 Interest expense, net of interest income
Slide 29: 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 30: SLL
SLL