Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q1 2019 Earnings Presentation
22 slides from Jones Lang Lasalle's earnings presentation, May 7, 2019
Slide 1: Supplemental Information 1st Quarter 2019 Earnings
Supplemental Information 1st Quarter 2019 Earnings May 7, 2019
Slide 2: Global market overview
Global market overview Q1 2019 Macro-economic operating environment ▪ Global economic momentum slowing but fundamentals remain resilient ▪ Monetary conditions and central bank policy generally loosened in the quarter ▪ U.S. growth continues but moderating as fiscal stimulus benefits fade ▪ European
Slide 3: CRE Market performance & outlook
CRE Market performance & outlook Americas EMEA APAC Global Gross Leasing Volumes (square footage) Q1 2019 6% 6% (20)% 2% FY 2019 Flat Flat to (5)% Flat to (5)% Flat Outlook Direct Commercial Real Estate Investment Sales Volumes ($) Q1 2019 (8)% (22)% 14% (8)% FY 2019 (10)% (10)% 5% (5 - 10%) Outlook
Slide 4: Consolidated summary non-GAAP financial results
Consolidated summary non-GAAP financial results Consolidated Real Estate Services LaSalle $1,282 $1,319 $1,225 $1,168 Fee Revenue $113 $94 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 $107.7 $95.4 Adj EBITDA $77.1 $65.3 $42.4 $18.3 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 37.4% Adj EBITDA
Slide 5: Consolidated adjusted EBITDA margin performance
Consolidated adjusted EBITDA margin performance LaSalle Positive RES organic growth Investments in technology Anticipated decline in incentive fees & equity earnings partially offset by Strong Americas leasing private equity performance and M&A performance and disciplined cost Strategic investments
Slide 6: Balance sheet & cash flow
Balance sheet & cash flow Cash Use ($ in millions) Q1 2019 Q1 2018 Highlights M&A (1) $27 $9 Investment Grade ▪ Investment grade ratings Net Co-investment (2) 3 (7) Ratings reflect financial and balance sheet strength Capital Expenditures (3) 45 42 Moody’s: Baa1 S&P: BBB+ Other 16 16 ▪ Net debt incr
Slide 7: 2019 Operating framework
2019 Operating framework (As Introduced with Q4 2018 earnings release) 2019 JLL Priorities ▪ Convert Corporate Solutions strong pipeline and drive further margin expansion ▪ Strengthen Capital Market teams and drive productivity ▪ Accelerate early successes in digital journey; digital services and p
Slide 8: Segment Details
Segment Details © 2019 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 9: Real Estate Services summary financial results
Real Estate Services summary financial results Americas EMEA Asia Pacific $624 $711 Fee Revenue $350 $316 $194 $198 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 $88 Adj EBITDA $68 $5 $7 $(7) $(18) Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Adj EBITDA Margin 10.9% 12.4% 2.5% 3.7% (2.1)% (5.8)
Slide 10: Q1 2019 Real Estate Services fee revenue detail
Q1 2019 Real Estate Services fee revenue detail ($ in millions; % change over Q1 2018) Americas EMEA Asia Pacific Total RES % Change % Change % Change % Change USD LC USD LC USD LC USD LC Leasing $377.6 29% 29% $50.5 (11)% (5)% $33.3 (4)% 1% $461.4 20% 22% Capital Markets $99.7 (8)% (8)% $59.6 (29)%
Slide 11: LaSalle Investment Management results
LaSalle Investment Management results Q1 2019 Hightlights Q1 2019 AUM Highlights $94M $18M 19.5% $64.3B $1.8B $6.5B Fee Adjusted Adjusted AUM Capital Dry Revenue EBITDA EBITDA raised powder margin ▪ Anticipated decline in fee revenue driven by Assets Under Management By geography & type incentive fe
Slide 12: Q1 2019 fee revenue growth drivers
Q1 2019 fee revenue growth drivers YoY Growth Organic M&A Currency USD Growth Contribution Impact Americas 14% 14% 1% (1)% EMEA (10)% (3)% —% (7)% APAC 2% 8% —% (6)% LaSalle (17)% (19)% 5% (3)% Consolidated 3% 5% 1% (3)% Notes: • Refer to pages 17-20 for definitions and reconciliations of non-GAAP f
Slide 13: Appendix
Appendix © 2019 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 14: Currency overview
Currency overview Currency EPS impact Currency exchange rate summary Currency Impact FX Rates Adjusted EPS (QTD Average Rate) Favorable/(Unfavorable) Q1 2019 Q1 2018 % Change Q1 2019 0.02 GBP £ 1.30 1.39 (6)% EUR € 1.14 1.24 (8)% AUD $ 0.71 0.75 (5)% ▪ Modest Q1 impact largely attributable to a JPY
Slide 15: Q1 2019 select business wins
Q1 2019 select business wins Corporate Solutions Capital Markets Leasing U.S. Bancorp Tower 28, Long Island City Curtis, Philadelphia NorthPoint Development/CSX, Americas FBI Headquarters, Denver Ohio 3000 Skyline Drive, Mesquite 9 Dekalb Avenue, Brooklyn TX BASF AEW, Nanterre Brookfield Properties,
Slide 16: Q1 2019 Real Estate Services GAAP revenue
Q1 2019 Real Estate Services GAAP revenue ($ in millions; % change over Q1 2018) Americas EMEA Asia Pacific Total RES % Change % Change % Change % Change USD LC USD LC USD LC USD LC Leasing $389.8 28% 28% $52.2 (11)% (4)% $35.9 (5)% —% $477.9 19% 21% Capital Markets $100.1 (10)% (10)% $64.0 (28)% (2
Slide 17: Fee revenue / fee-based operating expenses reconciliation
Fee revenue / fee-based operating expenses reconciliation Three Months Ended March 31, ($ in millions) 2019 2018 Revenue $ 3,820.6 $ 3,555.2 Reimbursements (1,859.0) (1,664.1) Revenue before reimbursements 1,961.6 1,891.1 Gross contract costs $ (642.6) (606.9) Net non-cash MSR and mortgage banking $
Slide 18: 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 March 31, ($ in millions except per share data) 2019 2018 GAAP net income attributable to common shareholders $ 21.3 $ 40.3 Shares (in 000s) 46,019 45,905 GAAP diluted earnings per share $ 0.46
Slide 19: Reconciliation of GAAP Net Income to Adjusted EBITDA
Reconciliation of GAAP Net Income attributable to common shareholders to Adjusted EBITDA Three Months Ended March 31, ($ in millions) 2019 2018 GAAP net income attributable to common shareholders $ 21.3 $ 40.3 Interest expense, net of interest income 9.6 13.8 Provision for income taxes (0.7) 13.5 De
Slide 20: 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 21: 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 22: © 2019 Jones Lang LaSalle IP, Inc. All rights reserved.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved.