Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q2 2020 Earnings Presentation
27 slides from Jones Lang Lasalle's earnings presentation, Aug 6, 2020
Slide 1: Earnings Presentation Second Quarter 2020
Earnings Presentation Second Quarter 2020 08/06/2020
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: JLL's Response to the COVID-19 Pandemic
JLL’s Response to the COVID-19 Pandemic Our People Our Clients Our Company Our Communities Maintaining the health and Providing strategic advice Prudently managing our Helping manage the well-being of our employees, to our clients to help costs, in tandem with our spread of the virus and their famil
Slide 4: Consolidated Second Quarter 2020 Financial Results
Consolidated Second Quarter 2020 Financial Results Revenue Fee Revenue Adjusted EBITDA Q2 2020 YTD 2020 Q2 2020 YTD 2020 Q2 2020 YTD 2020 $3.7B $7.8B $1.2B $2.8B $103M $199M (14)% in USD (4)% in USD (24)% in USD (7)% in USD (54)% in USD (38)% in USD (13)% in LC (3)% in LC (22)% in
Slide 5: Q2 2020 Strategic Review and Key Highlights
Q2 2020 Strategic Review and Key Highlights Leadership in Strong cash Corporate Solutions Successfully adapting to COVID-19 generation and debt resiliency integrated HFF repayment • Guiding our clients to re- • Demonstrated the • Incorporated HFF into imagine the future of • Enhanced receivable stre
Slide 6: Q2 2020 Macroeconomic and Real Estate Operating Environment
Q2 2020 Macroeconomic and Real Estate Operating Environment • Office markets witnessed extensive disruption during Global Macroeconomy the second quarter of 2020 with global leasing volumes down 60% year-over-year • Following the first quarter, recent data • Vacancy rates moved up across all regions
Slide 7: JLL is Positioned to Navigate Through These Turbulent Times
JLL is Positioned to Navigate Through These Turbulent Times • Global and integrated platform with a talented workforce • Dedication to providing world-class results for our clients and communities JLL Capabilities • Proven ability to manage effectively in an environment filled with uncertainty • Suf
Slide 8: Financial Overview
@JLL Financial Overview
Slide 9: Q2 2020 Financial Results – Segment Revenue
Q2 2020 Financial Results – Segment Revenue ($ in millions; % change in local currency over three and six months ended Q2 2019) Q2 2020 Revenue Q2 2020 Fee Revenue YTD 2020 Revenue YTD 2020 Fee Revenue Americas $2,229 $683 $4,752 $1,602 (9)% (20)% 1% 2% $626 EMEA $268 $1,382 $579 (21)% (27)%
Slide 10: Q2 2020 Financial Results – Segment Profitability
Q2 2020 Financial Results – Segment Profitability ($ in millions; % change, Adjusted EBITDA Margin and corresponding change in bps in local currency over three and six months ended Q2 2019) Q2 2020 Adjusted Q2 2020 Adjusted EBITDA YTD 2020 Adjusted YTD 2020 EBITDA Margin EBITDA Adjusted EBITDA Margi
Slide 11: Q2 2020 Adjusted EBITDA Margin Performance
Q2 2020 Adjusted EBITDA Margin Performance LaSalle: RES Organic: RES M&A: Investments: Reflects lower incentive fees Driven by Fee Revenue declines Q3 2019 acquisition of HFF drives Reflects decreased tech spend recorded compared to exceptional across all three geographic M&A dilution across the fir
Slide 12: Q2 2020 Real Estate Services Fee Revenue by Service Line
Q2 2020 Real Estate Services Fee Revenue by Service Line ($ in millions; % change over Q2 2019) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $267 (44)% (44)% $46 (29)% (27)% $31 (50)% (49)% $344 (43)% (43)% 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 $673 (22)% (21)% $93 (19)% (17)% $54 (44)% (42)% $819 (23)% (23)% Capital Markets
Slide 14: Q2 2020 Fee Revenue Performance Drivers
Q2 2020 Fee Revenue Performance Drivers (% change over Q2 2019) Organic Growth M&A Contribution YoY Growth USD Currency Impact LC LC Americas (21)% (29)% 8% (1)% EMEA (29)% (25)% (2)% (2)% APAC (24)% (22)% —% (2)% Total RES (24)% (27)% 4% (1)% LaSalle (23)% (22)% —% (1)% Consolidated (24)% (27)% 4%
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 2% (12)% 14% —% EMEA (17)% (13)% (2)% (2)% APAC (18)% (16)% —% (3)% Total RES (6)% (13)% 7% (1)% LaSalle (11)% (10)% —% (1)% Consolidated (7)% (13)% 7% (1)%
Slide 16: LaSalle – Second Quarter 2020 Performance
LaSalle – Second Quarter 2020 Performance $95M $27M Fee Revenue Adjusted EBITDA Second Quarter Overview (23)% (USD) / (22)% (LC) (36)% (USD) / (36)% (LC) 42 Fee Revenue Decreased by (22)% (in LC) 123 • Fee revenue decline attributable to lower 95 transaction and incentive fees 27 • LaSalle annuity r
Slide 17: HFF Acquisition Update
HFF Acquisition Update • Successfully integrated the HFF organization • Realigned management structure enabling significant optimization and productivity gains HFF Standalone Trailing Twelve-Month Financials through across the combined capital markets platform 6/30/2020 ($M) • On-track to achieve th
Slide 18: 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 25% utilization; record Q2 with Moody’s: Baa1 approximately $450 million in net d
Slide 19: Appendix and Supplemental Material
Appendix and Supplemental Material
Slide 20: Q2 2020 JLL Research Market Performance Summary
Q2 2020 JLL Research Market Performance Summary Americas EMEA APAC Global Gross Leasing Volumes (square footage) Q2 2020 (65)% (50)% (61)% (60)% (vs Q2 2019) Direct Commercial Real Estate Investment Sales Volumes ($) Q2 2020 (72)% (35)% (39)% (55)% (vs Q2 2019) Notes: • Source: JLL Research, August
Slide 21: Q2 2020 Real Estate Services Revenue by Service Line
Q2 2020 Real Estate Services Revenue by Service Line ($ in millions; % change over Q2 2019) Americas EMEA APAC Total RES % Change % Change % Change % Change ($M) USD LC ($M) USD LC ($M) USD LC ($M) USD LC Leasing $278 (43%) (43%) $47 (29%) (27%) $34 (49%) (48%) $359 (43%) (42%) Capital Markets $141
Slide 22: YTD 2020 Real Estate Services Revenue by Service Line
YTD 2020 Real Estate Services Revenue by Service Line ($ 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 $697 (21%) (21%) $95 (20%) (17%) $59 (42%) (40%) $851 (23%) (22%) Capital Markets $38
Slide 23: Fee Revenue / Fee-based Operating Expenses Reconciliation
Fee Revenue / Fee-based Operating Expenses Reconciliation Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2020 2019 2020 2019 Revenue $3,670.4 $4,266.5 $7,766.4 $8,087.1 Reimbursements (1,841.9) (1,918.3) (3,704.9) (3,777.3) Revenue before reimbursements 1,828.5 2,348.2 4,061.5
Slide 24: Reconciliation of GAAP Net Income to Adjusted Net Income and Diluted EPS
Reconciliation of GAAP Net Income to Adjusted Net Income and Diluted Earnings Per Share Three Months Ended June 30, Six Months Ended June 30, ($ in millions except per share data) 2020 2019 2020 2019 GAAP net income attributable to common shareholders $15.2 $110.5 $20.5 $131.8 Shares (in 000s) 52,17
Slide 25: Reconciliation of GAAP Net Income to Adjusted EBITDA
Reconciliation Of GAAP Net Income Attributable To Common Shareholders To Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2020 2019 2020 2019 Net income attributable to common shareholders $15.2 $110.5 $20.5 $131.8 Interest expense, net of interest income 14.9 13
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