Jones Lang LaSalle Incorporated · NYSE:JLL
Jones Lang LaSalle — Investor Presentation (December 2016)
29 slides from Jones Lang LaSalle's investor presentation, Dec 8, 2016
Slide 1: Investor presentation
Investor presentation More than 70,000 employees, 280 offices, 80 countries, 1 global brand Working together to create value in the world of real estate Published: December 2016
Slide 2: Who we are
Who we are JLL is a leading provider of real estate services and investment management, creating value for corporations and investors across the globe Revenue by Segment 46% 27% 19% 8% Americas LaSalle Investment ManagementAsia Pacific EMEA 2015 Fee Revenue = $5.2B Operational excellence • Productiv
Slide 3: The JLL story
Jones Lang Wootton founded 1783 1968 1997 1999 LaSalle Partners founded LaSalle Partners initial public offering LaSalle Partners and Jones Lang Wootton merge to create Jones Lang LaSalle Integrated global platform (NYSE ticker “JLL”) 2008 The Staubach Company and Jones Lang LaSalle combine operatio
Slide 4: What we do
What we do Diversified Real Estate Services Leasing Broker transactions between tenants & landlords Driven by economic growth and corporate confidence Capital Markets Investment sales & finance arrangements Driven by investor allocations to real estate and market liquidity Property & Facility Manage
Slide 5: Annual performance since 2011 and strong long-term outlook
Annual performance since 2011 and strong long-term outlook 11% Fee revenue CAGR 17% Adjusted EBITDA CAGR 70% organic growth 30% M&A growth Investment-grade balance sheet positioned for future growth. Credit ratings: S&P BBB+ and Moody’s Baa2 (Positive) Experienced leadership 9 member Global Executiv
Slide 6: Progress since 2011: JLL is a stronger business
Invested in M&A Progress since 2011 JLL is a stronger business Property and Facility Management Growth LaSalle AUM Adjusted EPS Growth 2.1x 48% 25% Growth $1.8B Note: Adjusted EPS growth and fee revenue growth metrics based on twelve months ended December 31, 2011 compared to December 31, 2015. Refe
Slide 7: Continued investment for long-term growth
(1) Includes deferred business acquisition payments and earn outs paid during the period for transactions which closed in prior periods. (2) Represents net investments (distributions). 2015 includes contributions of $48M offset by capital distributions of $48M. (3) Excludes capital leases and tenant
Slide 8: M&A investments timed mid-cycle
M&A investments timed mid-cycle 8 Americas 30% EMEA 58% AsiaPac 12% Pro-forma annual fee revenue by region Leasing 7% Capital Markets 11% Property & Facilities Mgmt 64% Project Development Svcs 12% Advisory & Consulting 6% Pro-forma annual fee revenue by service line Underwritten EBITDA margin Avera
Slide 9: M&A helping drive long-term strategy
G1 Build our local and regional Markets business G2 Strengthen our winning position in Corporate Solutions G3 Capture leading share of global capital flows for investment sales G4 Grow LaSalle Investment Management’s leadership position G5 Connections: Differentiate and Sustain Travis Commercial Acr
Slide 10: Strengthening our winning position in Corporate Solutions
Strengthening our winning position in Corporate Solutions Note: Refer to pages A11 for Fee Revenue definition. (1) Represents results of our three geographic segments for the year ended December 31, 2015 (includes Americas, EMEA and Asia Pacific and excludes LaSalle). (2) Amounts represent underwrit
Slide 11: Technology modernizing, driving strategic agenda
Innovate: RE market leadership through technology Modernize: platform for next decade of growth ► Latest technology ERP infrastructure ► Progressive data strategy, architecture and governance ► Advanced analytic tools for strategic decision-making ► Expanding client-centric tools Technology moderniz
Slide 12: Normalizing record 2015 margins
(1) Assumes ~90% margin on Equity Earnings and ~40% on Incentive Fees. (2) Organic service mix shift includes impact of talent investment. All Margin percentage references are in local currency on a Fee Revenue basis. 14.5% ~10% – 12% 120-140 bps 160-200 bps 20-40 bps 60-80 bps 8.0% 10.0% 12.0% 14.0
Slide 13: Strong balance sheet for long-term growth
Strong balance sheet for long-term growth Extended credit facility maturity to June 2021 and increased capacity to $2.75B (1) Principal balances shown exclude debt issuance costs of $23M, $18M, and $19M for Q3 2016, Q4 2015, and Q3 2015, respectively. (2) Refer to pages A7-A11 for definitions and re
Slide 14: Current macro-economic operating environment
Current macro-economic operating environment 14 Robust global real estate markets 2016 Global real estate outlook Source: JLL Research, October 2016 Leasing, vacancy, rental and capital value projections relate to the office sector. Slow global economic growth continues Political uncertainty con
Slide 15: 2017 JLL outlook
2017 JLL outlook 15 Positive prospects for 2017 2017 Global real estate outlook Source: JLL Research, October 2016 Leasing, vacancy, rental and capital value projections relate to the office sector. Continued investments into data and technology Focus on integration of recent M&A Margin modera
Slide 16: JLL, a compelling combination
JLL, a compelling combination Global brand: Over 250 years of real estate experience Performance • Growth in recurring revenue base • Strategic M&A • Strong investment- grade balance sheet • Highly balanced business Culture • Key differentiator • High ethics • Trusted advisor • Employee engagement •
Slide 17: Appendix
Appendix
Slide 18: Leasing and service line competitive advantages
Leasing • M&A and organic market share growth • Strength in client relationships drives recurring revenue • Tenant Representation, Corporate Solutions momentum and renewals drive annuity base Property Management • Significant scale in key markets • Annuity revenue Project & Development Services • Su
Slide 19: Global outsourcing propels Corporate Solutions
Global outsourcing propels Corporate Solutions FY 2015 Corporate Solutions client wins Wins 137 Expansions 75 Renewals 35 Global integration • Attracts large scale multinational clients • Leverages local market execution Winning big Corporate Solutions posts record year of business wins globally 30+
Slide 20: JLL Capital Markets revenue
* May 2011: King Sturge acquired, total annual revenue = $260 million $114 $61 $38 $84 $136 $169 $219 $267 $332 $339 $196 $107 $141 $229 $235 $333 $411 $475 $104 $60 $58 $81 $95 $109 $164 $145 $149 2007 2008 2009 2010 2011 2012 2013 2014 2015 $557 $317 $203 $306 $460 $716 $513 * $823 2015 key statis
Slide 21: LaSalle Investment Management Assets Under Management
Assets Under Management ($ billions) Note: AUM data reported on a one-quarter lag. 2015 AUM $ 56.4 Separate Accounts $ 32.4 Fund Management $ 11.2 Public Securities $ 12.8 $178 $245 $278 $242 $238 $245 $228 $223 $236 $243 $0 $100 $200 $300 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Building A
Slide 22: Consolidated earnings scorecard
2014 $392M $8.65 $508M / 10.8%$4.7B US GAAP: $386M US GAAP: $8.52Gross revenue: $5.4B Notes: (1) Adjusted EBITDA margin normalized for LaSalle incentive fees and equity earnings generates a reduction of 120-140bps for 2015 and 80-100bps for 2014, consistent with slide 12. 2015 and 2014 adjusted for
Slide 23: Sustainability: what it means to JLL
At JLL, our vision is to be the most sustainable real estate services and investment firm globally, realizing our significant opportunity to make buildings and cities thrive. This means sustaining our business over the long-term by successfully managing our financial, environmental, and social risks
Slide 24: Reconciliation of GAAP Net Income to Adjusted EBITDA
Reconciliation of GAAP Net Income to Adjusted EBITDA GAAP net income Interest expense, net of interest income Provision for income taxes Depreciation and amortization EBITDA Restructuring and acquisition charges MSRs - net non-cash activity Adjusted EBITDA Trailing twelve months Ended September 30 2
Slide 25: Reconciliation to Adjusted Net Income and Earnings Per Share
2011 & 2015 Reconciliation of GAAP Net Income to Adjusted Net Income and Earnings Per Share Twelve months Ended Dec 31 Twelve months Ended Dec 31 2011 2015 GAAP net income (loss) attributable to common shareholders $ 164.0 $ 438.4 Shares (in 000s) 44,367 45,415 GAAP diluted (loss) earnings per share
Slide 26: Fee revenue / expense reconciliation
2011-2015 Fee revenue / expense reconciliation Note: Consolidated revenue and fee revenue exclude equity earnings (losses). Restructuring and acquisition charges, Mortgage servicing rights (MSRs) - net non- cash activity, and Amortization of acquisition-related intangibles are excluded from adjusted
Slide 27: 2011-2015 Reconciliation of GAAP Net Income to Adjusted EBITDA
2011-2015 Reconciliation of GAAP Net Income to Adjusted EBITDA Twelve months Ended Dec 31 Twelve months Ended Dec 31 Twelve months Ended Dec 31 Twelve months Ended Dec 31 Twelve months Ended Dec 31 2011 2012 2013 2014 2015 GAAP net income (loss) attributable to common shareholders $ 164.0 $ 207.6 $
Slide 28: Non-GAAP Measures
Non-GAAP Measures Fee Revenue and Fee-Based Operating Expenses Consistent with U.S. generally accepted accounting principles (“GAAP”), certain vendor and subcontractor costs (“gross contract costs”) which are managed on certain client assignments in the Property & Facility Management and Project & D
Slide 29: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements © 2016 Jones Lang LaSalle IP, Inc. All rights reserved. No part of this publication may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording o
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