Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q1 2023 Earnings Presentation
26 slides from Jones Lang Lasalle's earnings presentation, May 4, 2023
Slide 1: Earnings Presentation First Quarter 2023
Earnings Presentation First Quarter 2023 May 4, 2023
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements Statements in this presentation 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: First quarter industry highlights
First quarter industry highlights
Slide 4: Capital markets industry highlights
Capital markets industry highlights Real estate investment volumes by region, 2007 – Q1 2023 Quarterly investment volumes by sector, Q1 2021 – Q1 2023 $1,400 $175 Residential $1,265 Office $1,200 $150 $1,058 $1,047 Industrial $1,000 $887 $125 Retail Hotels US$ Billions $801 $800 $100 $600 $75 $400 $
Slide 5: Capital markets industry trends
Capital markets industry trends Global fundraising for closed-end funds, 2007 – Q1 2023 Dry powder in closed-end funds, 2007 – Q1 2023 $500 $250 800 $416 $189 $221 $397 $386 $389 $182 700 $400 $356 $200 $160 600 US$ Billions # of funds US$ Billions $139 500 $300 $150 400 $200 $164 $100 300 $48 $44 $
Slide 6: Office leasing industry highlights
Office leasing industry highlights Global office leasing volumes by region, 2007 – Q1 2023 Rental growth for prime office assets - quarterly 50 6% 45 44 41 4% Rental change (q-o-q %) 40 35 2% 35 32 0% Millions sqm 30 26 25 -2% 20 -4% 15 -6% 10 9 7 7 5 -8% 0 -10% U.S. EMEA Asia Pacific First Quarter
Slide 7: Industrial leasing industry highlights
Industrial leasing industry highlights U.S. EMEA APAC Gross Leasing Gross Leasing Net Absorption 25.0 25.0 10.0 20.0 20.0 8.0 millions sq m 15.0 15.0 6.0 10.0 10.0 4.0 5.0 5.0 2.0 0.0 0.0 0.0 5-year Q1 Avg Q1 2022 Q1 2023 5-year Q1 Avg Q1 2022 Q1 2023 5-year Q1 Avg Q1 2022 Q1 2023 (2018-2022) (2018-
Slide 8: Consolidated financials
Consolidated financials @ JLL SEE A BRIGHTER WAY
Slide 9: Consolidated first quarter 2023 financial results
Consolidated first quarter 2023 financial results Margins in local currency; growth rates represent % change over three months ended Q1 2022 ’23/’22 % Chg. Local Q1 2023 Q1 2022 ’23/’22 % Chg. USD Currency Revenue $4,716M $4,801M (2)% 1% Fee Revenue $1,584M $1,901M (17)% (15)% Operating Inco
Slide 10: Business segments results
Business segments results @ JLL SEE A BRIGHTER WAY
Slide 11: First quarter 2023 financial results – Business segments
First quarter 2023 financial results – Business segments $M. Growth rates and margins in local currency; growth rates represent % change over three months ended Q1 2022 Revenue Fee Revenue Adjusted EBITDA Adjusted EBITDA Margin Markets $906 $627 $72 11.2% Advisory (7)% (14)% (36)% 380 bps Ca
Slide 12: Markets Advisory
Markets Advisory Margins in local currency; growth rates represent % change over three months ended Q1 2022 Fee Revenue Adjusted EBITDA $M $741 $26 $M, % of fee revenue $627 $119 $18 $127 $111 $597 $72 $483 15.0% 11.2% Q1 2022 Q1 2023 Q1 2022 Q1 2023 Leasing Property Management Advisory, Consulting
Slide 13: Capital Markets
Capital Markets Margins in local currency; growth rates represent % change over three months ended Q1 2022 Fee Revenue Adjusted EBITDA $M $M, % of fee revenue $592 $40 $83 $350 $118 $37 $77 $11 $469 $235 20.0% 2.9% Q1 2022 Axis Title Q1 2023 Q1 2022 Q1 2023 First Quarter Highlights • Fee revenue dec
Slide 14: Work Dynamics
Work Dynamics Margins in local currency; growth rates represent % change over three months ended Q1 2022 Fee Revenue Adjusted EBITDA $M $M, % of fee revenue $442 $411 $35 $48 $53 $26 $176 $211 $182 $183 8.6% 5.1% Q1 2022 Q1 2023 Q1 2022 Q1 2023 Workplace Management Project Management Portfolio Servi
Slide 15: JLL Technologies
JLL Technologies Margins in local currency; growth rates represent % change over three months ended Q1 2022 Fee Revenue Adjusted EBITDA $M $M, % of fee revenue $58 $45 (27.2%) (23.7%) ($12) ($13) Q1 2022 Q1 2023 Q1 2022 Q1 2023 First Quarter Highlights • Fee revenue growth of 29% local currency (28%
Slide 16: LaSalle
LaSalle Margins in local currency; growth rates represent % change over three months ended Q1 2022 Fee Revenue Adjusted EBITDA $M $112 $107 $4 $M, % of fee revenue $4 $17 $9 $91 $95 $21 $14 19.0% 13.3% Q1 2022 Q1 2023 Q1 2022 Q1 2023 Advisory Fees Transaction Fees Incentive Fees First Quarter Highli
Slide 17: Capital allocation and balance sheet
Capital allocation and balance sheet
Slide 18: Debt and leverage
Debt and leverage Highlights: • Strong balance sheet with ample liquidity provides operational flexibility Investment Grade Credit Ratings • Sequential quarter increase in net debt primarily attributable to annual incentive compensation payments Moody’s: Baa1 S&P: BBB+ Debt and leverage ($M) Q1 2023
Slide 19: Financial Targets
Financial Targets @ JLL SEE A BRIGHTER WAY
Slide 20: 2023 and Mid-Term Financial Targets
2023 and Mid-Term Financial Targets 2023 Consolidated Financial Targets 2025 Consolidated Financial Targets* Fee Revenue $10-11B Adj. EBITDA Margin 14-16% Adj. EBITDA Margin 16-19% Net Debt / Adj. EBITDA < 2x *Unchanged from the November 2022 Investor Briefing 20 | © 2023 Jones Lang LaSalle IP, Inc.
Slide 21: Supplemental materials & non-GAAP reconciliations
Supplemental materials & non-GAAP reconciliations
Slide 22: Fee revenue / fee-based operating expenses reconciliation
Fee revenue / fee-based operating expenses reconciliation Three Months Ended Mar 31 ($M) 2023 2022 Revenue $4,715.5 $4,801.4 Gross contract costs (3,133.3) (2,904.5) Net non-cash MSR and mortgage banking derivative activity 1.8 3.6 Fee revenue $1,584.0 $1,900.5 Operating expenses $4,697.7 $4,625.7 G
Slide 23: Reconciliation of net (loss) income to adjusted EBITDA
Reconciliation of net (loss) income attributable to common shareholders to adjusted EBITDA Three Months Ended Mar 31 ($M) 2023 2022 Net (loss) income attributable to common shareholders $(9.2) $145.6 Interest expense, net of interest income 26.3 10.2 Income tax (benefit) provision (2.3) 40.3 Depreci
Slide 24: Reconciliation to adjusted net income and adjusted diluted EPS
Reconciliation of net (loss) income to adjusted net income and adjusted diluted earnings per share Three Months Ended Mar 31 ($M except per share data) 2023 2022 Net (loss) income attributable to common shareholders $(9.2) $145.6 Shares (in 000s)(1) 47,555 50,957 Diluted (loss) earnings per share $(
Slide 25: 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 26: Non-GAAP measures (cont.)
Non-GAAP measures (cont.) Restructuring and Acquisition Charges primarily consist of: (i) severance and employment-related charges, including those related to external service providers, incurred in conjunction with a structural business shift, which can be represented by a notable change in headcou