Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q1 2021 Earnings Presentation
23 slides from Jones Lang Lasalle's earnings presentation, May 5, 2021
Slide 1: Earnings Presentation First Quarter 2021
Earnings Presentation First Quarter 2021 05/05/2021
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 shares repurchases may be considered forward-looking statements within the meaning of the Private Securiti
Slide 3: Consolidated First Quarter 2021 Financial Results
Consolidated First Quarter 2021 Financial Results Growth rates and margins in local currency; growth rates represent % change over three months ended Q1 2020 Revenue Fee Revenue Adjusted EBITDA Q1 2021 Q1 2021 Q1 2021 $4.0B $1.4B $190M (4)% (7)% (96)% Adjusted EBITDA Margin Adjusted Diluted EP
Slide 4: Q1 2021 Strategic Review and Key Highlights
Q1 2021 Strategic Review and Key Highlights Positioned For Effectively Invested In Maintained Advanced Our Growth Managed Strategic Growth Financial ESG Commitment Expenses Initiatives Flexibility • Continue to see • Ongoing alignment • Prioritized internal • Extended maturity • Ensured our ESG stro
Slide 5: JLL Technologies – Investing in Innovative Technologies
JLL Technologies – Investing in Innovative Technologies • JLL Technologies has made in-roads in its goal of investing and Broadening client access to growing early-stage technology companies, including through its Spark Venture Funds, that are transforming the real estate industry leading-edge techn
Slide 6: Q1 2021 Macroeconomic and Real Estate Operating Environment
Q1 2021 Macroeconomic and Real Estate Operating Environment • Direct commercial real estate investment totaled $187 Global Macroeconomy billion during Q1 2021, marking a 13% decline year- on-year. This reflects the steady improvement of liquidity and capital flows, given robust Q1 2020 • In Q1, the
Slide 7: Financial Overview
@JLL Financial Overview
Slide 8: Q1 2021 Financial Results – Segment Revenue
Q1 2021 Financial Results – Segment Revenue ($ in millions; % change in local currency over three months ended Q1 2020) Q1 2021 Revenue Q1 2021 Fee Revenue Americas $2,444 $833 (3)% (9)% EMEA $716 $312 (12)% (7)% $786 $213 APAC +3% +12% LaSalle $91 $85 (16)% (17)% Notes: • Refer to pages 19
Slide 9: Q1 2021 Financial Results – Segment Profitability
Q1 2021 Financial Results – Segment Profitability ($ in millions; % change, Adjusted EBITDA Margin and corresponding change in bps in local currency over three months ended Q1 2020) Q1 2021 Adjusted EBITDA Q1 2021 Adjusted EBITDA Margin Americas $169 20.3% +39% +710 bps EMEA $(25) (8.4)% n.m. (50
Slide 10: Q1 2021 Adjusted EBITDA Margin Performance
Q1 2021 Adjusted EBITDA Margin Performance RES: LaSalle: JLL Technologies: Non-Cash Items: (excluding equity earnings) Reflected rebounding results in Asia Reflected lower transaction and Reflected continued investment in JLL Represented a decrease to loan loss Pacific and the impact of cost reducti
Slide 11: Q1 2021 Real Estate Services Fee Revenue by Service Line
Q1 2021 Real Estate Services Fee Revenue by Service Line ($ in millions; % change over Q1 2020) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $351 (13)% (14)% $50 7% (1)% $28 23% 16% $430 (10)% (11)% Capital Markets $207 (16)
Slide 12: RES Organic Fee Revenue Trends Steadily Improving
RES Organic Fee Revenue Trends Steadily Improving 0% (6)% (10)% (20)% (17)% (24)% (30)% (27)% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Real Estate Services (“RES”) (27)% (24)% (17)% (6)% Leasing (43)% (30)% (28)% (11)% Capital Markets (47)% (43)% (15)% (11)% Property & Facility Management 4% 5% 2% 5% Project
Slide 13: LaSalle – First Quarter 2021 Performance
LaSalle – First Quarter 2021 Performance Fee Revenue in $M Adjusted EBITDA in $M First Quarter Overview Fee Revenue Decreased by 17% (in LC) 99 • Lower advisory fees attributable to 85 21 pandemic-driven valuation declines in AUM • Transaction and incentive fees decline reflect decreased acquisition
Slide 14: Disciplined Approach to Capital Allocation
Disciplined Approach to Capital Allocation Invest To Drive Future Growth Category Objective Measurement Generate organic growth through technology Investments innovation, new products & services, and LaSalle co-investment • Target consolidated 12%+ ROIC1 M&A Pursue value accretive acquisitions Maint
Slide 15: Balance Sheet
Balance Sheet Highlights: • Strong balance sheet with ample liquidity provides operational flexibility Investment Grade Credit Ratings • Reduction in net debt reflects substantial cash collections in 2020 and lower incentive Moody’s: Baa1 compensation payments in 2021 S&P: BBB+ • Disciplined working
Slide 16: Appendix and Supplemental Material
Appendix and Supplemental Material
Slide 17: Q1 2021 JLL Research Market Performance Summary
Q1 2021 JLL Research Market Performance Summary Americas EMEA APAC Global Gross Leasing Volumes (square footage – volumes relate to the office sector) Q1 2021 (45)% (8)% (26)% (31)% (vs Q1 2020) Direct Commercial Real Estate Investment Sales Volumes ($ - represents deals over $5 million) Q1 2021 (20
Slide 18: Q1 2021 Real Estate Services Revenue by Service Line
Q1 2021 Real Estate Services Revenue by Service Line ($ in millions; % change over Q1 2020) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $364 (13)% (13)% $54 13% 5% $31 24% 16% $450 (9)% (10)% Capital Markets $217 (12)% (12)
Slide 19: Fee Revenue / Fee-based Operating Expenses Reconciliation
Fee Revenue / Fee-based Operating Expenses Reconciliation Three Months Ended March 31, ($ in millions) 2021 2020 Revenue $4,037.1 $4,096.0 Reimbursements (1,907.5) (1,863.0) Revenue before reimbursements 2,129.6 2,233.0 Gross contract costs (677.2) (729.4) Net non-cash MSR and mortgage banking deriv
Slide 20: Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted EPS
Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted Earnings Per Share Three Months Ended March 31, ($ in millions except per share data) 2021 2020 Net income attributable to common shareholders $103.0 $5.3 Shares (in 000s) 52,175 52,458 Diluted earnings per share $1.97 $0.10 Ne
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income Attributable To Common Shareholders To Adjusted EBITDA Three Months Ended March 31, ($ in millions) 2021 2020 Net income attributable to common shareholders $103.0 $5.3 Interest expense, net of interest income 10.4 14.6 Provision for income taxes 28.2 5.0 Depreciation an
Slide 22: 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 23: SLL
SLL