Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Investor Presentation (March 2020)
24 slides from Jones Lang Lasalle's investor presentation, Mar 3, 2020
Slide 1: Investor presentation
Investor presentation More than 93,000 employees, 80 countries, 1 global brand Published March 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: Who we are
Who we are Leading professional services firm that specializes in real estate and investment management. We shape the future of real estate for a better world, by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our client
Slide 4: The JLL story
The JLL story Over 250 years building a premier global brand and platform 1760 1783 1968 1997 1999 2008 2011 2015 2019 Jones Lang Wootton founded LaSalle Partners founded LaSalle Partners initial public offering LaSalle Partners and Jones Lang Wootton merge to create Jones Lang LaSalle Integrated gl
Slide 5: What we do
What we do Diversified real estate services Leasing Property & Facility Management Full-service brokerage between 2019 Fee Revenue = $7.1B Management and outsourcing of tenants and landlords properties and real estate portfolios Driven by economic growth and Driven by value enhancement for Capital M
Slide 6: Key trends and drivers
Key trends and drivers Strategic vision We see four long-term trends that really help us. How we respond to these will be pivotal to our future success. As our strategic vision, Beyond is focused around delivering on four key drivers that enable us to meet these challenges and growth opportunities.
Slide 7: Corporate Solutions annuity revenues
Corporate Solutions annuity revenues Wide spectrum of corporate real estate partnering models fuels contractual fee revenue growth Corporate outsourcing services: • Integrated Facility Management • Project & Development Services • Leasing • Advisory, Consulting & Other © 2020 Jones Lang LaSalle IP,
Slide 8: 2025 Growth targets
2025 Growth targets Accelerate profitable growth Solid foundation supports 9% average annual fee revenue growth Corporate Capital Local LaSalle Investment Solutions Markets Markets Management 2025 Target 10%+ 2x 7%+ 2x Revenue Revenue Revenue Revenue CAGR CAGR Partner Integrate Leverage market Fewer
Slide 9: Pillars of Beyond
Pillars of Beyond ESG value drivers in our corporate vision Clients Brand Digital People Values • Embedding • Enhancing our reputation • Creating workplaces with • Embracing diversity & • Actively encouraging sustainability in all as one of the world’s most the highest levels of promoting inclusion
Slide 10: Business Highlights
Business Highlights
Slide 11: 2020 operating environment
2020 operating environment 2020 Global real estate outlook • Fundamentals supported by stable economic growth, significant capital availability and low interest rates • Investment volumes forecast remains elevated in 2020 • Continued healthy leasing demand, though 2020 forecast expected to be lower
Slide 12: Strong balance sheet for long-term growth
Strong balance sheet for long-term growth Highlights: • Prioritize paydown of credit facility to reach pre-HFF net debt € 350M • Capital expenditures remain focused on IT Senior Notes • Adequate liquidity to support continued long-term growth 10 year debt 1.96% fixed • Investment grade ratings refle
Slide 13: Continued investment for long-term growth
Continued investment for long-term growth Historical cash investment ~ $4B $1,400 $1,200 $1,161 16% $1,000 Focused capital allocation strategy 4% 2% $821 $800 Highlights: 26% • Dividend increase driven by $621 $600 4% improved cash flow 24% 5% 4% • Technology and innovation- 78% $400 $380 focused ca
Slide 14: Consolidated Fee Revenue
Consolidated Fee Revenue JLL consolidated fee revenue ($ in millions) Highlights Reflects ASC 606 Services Global footprint LaSalle • Capital Markets 2019 fee revenue of ~$7.1 Asia Pacific billion, over 93,000 colleagues EMEA $7,139 • Leasing • Property and Facility serve clients in over 80 Americas
Slide 15: Capital Markets
Capital Markets JLL Capital Markets fee revenue ($ in millions) Highlights Asia Pacific Reflects ASC 606 Services Accretive investments EMEA Americas • Investment sales and • Gains across geographies $1,478 acquisitions • Acquisitions add skills and • Debt and equity placement coverage $197 • Fund a
Slide 16: Leasing
Leasing Highlights Leasing JLL Leasing fee revenue ($ in millions) Define space requirements, identify suitable alternatives, recommend appropriate occupancy solutions, and negotiate Reflects ASC 606 lease. Asia Pacific EMEA • M&A and organic market share growth $2,456 Americas • Strength in client
Slide 17: Property & Facility Management
Property & Facility Management Highlights JLL Property & Facilities Management fee revenue Services 2019 key statistics ($ in millions) Property Management Property management services totaling ~3.5B square feet Asia Pacific On-site management to real IFM managed ~1.5B square feet EMEA Reflects ASC
Slide 18: Project & Development Services
Project & Development Services JLL Project and Development Services fee revenue Highlights ($ in millions) Reflects ASC 606 Services Annuity focus provides consulting, design, Asia Pacific • Double-digit growth management and build services to EMEA $861 • Multi-year contracts tenants of leased space
Slide 19: Advisory, Consulting and Other Services
Advisory, Consulting and Other Services Highlights JLL Advisory, Consulting and Other fee revenue Services Valuations ($ in millions) provide clients with specialized, helps clients determine market Reflects ASC 606 value-added real estate consulting values for properties. Asia Pacific services in s
Slide 20: LaSalle Investment Management
LaSalle Investment Management 2006 to 2019 advisory revenue ($ million) Building Advisory Fees in Global Financial Stabilized Healthy Markets Advisory Fees Growth Highlights Crisis $350 Proven performance $314 • Long-standing client $300 $278 $8B • relationships Trusted advisors $250 $245 $242 $238
Slide 21: ASC 606 Overview
ASC 606 Overview Since May 2014, the Financial Accounting Standards Board (“FASB”) has issued multiple accounting standards updates that comprise and amend ASC Topic 606 (“ASC 606”), Revenue from Contracts with Customers. ASC 606 replaces most U.S. GAAP revenue recognition guidance and requires an e
Slide 22: Reconciliation of GAAP to non-GAAP
Reconciliation of GAAP to non-GAAP Net Income to Adjusted EBITDA Twelve months Twelve months Twelve months Twelve months ended ended ended ended Dec 31 Dec 31 Dec 31 Dec 31 ($ in millions) 2016 2017 2018 2019 GAAP net income attributable to common shareholders $ 329.3 $ 276.0 $484.1 $534.4 Interest
Slide 23: 2014-2019 Fee revenue/fee-based operating expenses reconciliation
2014-2019 Fee revenue/fee-based operating expenses reconciliation • Gross accounting requirements increase revenue and costs without corresponding increase to profit • Reimbursable vendor, subcontractor and out-of-pocket costs reported as revenue and expense in JLL financial statements have been inc
Slide 24: 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
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