2018 Annual Report Jones Lang Lasalle Incorporated Portraits of Ambition Antarctic Ambition Skiing Solo, Unsupported and Unassisted
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2018 Annual Report Jones Lang LaSalle Incorporated Portraits of Ambition Antarctic Ambition Skiing solo, unsupported and unassisted Equipped with an adventure Richard’s expedition was part of Team Battered by some of the worst weather mindset, Richard Parks is driven Quest, a collective of organizations of conditions this region of Antarctica to seek out and succeed in some which JLL is one of the four founding has seen in years and at risk of of the world’s most demanding and title partners. Team Quest is about serious injury, Richard’s expedition expeditions and environments. creating learning opportunities and ended prematurely after skiing having the courage to undertake your 306 miles (492.2km) over 17 days. Richard started his expedition to own adventure, whatever that may ski solo to the South Pole on Tuesday be, big or small, while seeking out new “Team Quest was always about using December 18, 2018. His aim was ideas and collaborating with others. adventure to inspire and empower to challenge Christian Eide’s incredible others, and in many ways we have world record of 24 days and better his “Creating the right environment to more lessons to share through the own British record of 29 days, which nurture bold ideas and ambitions like adversity of the expedition. After all, Richard set in 2014 when he became Richard’s is ingrained in our culture, nothing worth achieving comes the second fastest person in history and the journey and evolution of those easy! We learn, grow and go again!” to ski solo, unsupported and ideas is a continuous process — not a said Richard. unassisted to the South Pole. Richard is final destination,” said Kara Keough, the only person alongside Norwegian Global Brand Director at JLL. Eide to ski the journey in under 30 days. Click here to find out more about Richard’s Antarctic ambitions. 1 | JLL 2018 Annual Report JLL 2018 Annual Report | 2 Rock City The Detroit Institute of Music Education Founders Kevin Nixon and Sarah Clayman With interest overflowing, the next Paired with their digital offering — called are self-professed music business people challenge was finding a home for the DIME Online — Kevin and Sarah now first, who have become education Institute and completing the work have the reach to make music education people second. before the start of the first semester. more accessible globally. There are currently students from 22 countries “We became involved in music education “Kevin and Sarah needed a place with worldwide. because we feel it’s needed. Particularly a certain cool factor, and so we looked from an academic point of view, we’ve for spaces in the urban core, historic “We don’t promise fame and fortune,” always been on a crusade for an buildings that we could bring back,” Sarah said. “DIME is like a development Eminem to be recognized to the same said Tim Kay, Managing Director of JLL’s deal for young musicians, songwriters level as Mozart. That’s why we created Great Lakes Project and Development and entrepreneurs. They can make all the Detroit Institute of Music Education Services team. their mistakes while they’re here, so (DIME),” said Kevin and Sarah. when they leave, their dreams can The completed project at 1265 become reality.” DIME initially opened a pop-up store Griswold Street includes three stories so young artists could audition for of classrooms, offices and even a unique the program and instructors could basement venue with capacity for understand and share their ethos 200 people, called The Underground. within the community. It worked. Building from the success in Detroit, Click here to watch the film we created about Kevin and Sarah have recently opened DIME and their amazing work. DIME Denver. 3 | JLL 2018 Annual Report From workshop to workplace Solving a potential $80 billion productivity problem with a lifesaving device Safety standards from the Occupational Safety and Health Administration (OSHA) require engineers to shut down an entire electrical panel, even for simple modifications. While this protects workers from potentially dangerous shocks, downtime is disruptive and costly. To maintain uptime, companies cut corners and accidents happen — resulting in as many as 500 deaths per year. It was there that Engineering Manager Dave Crowell found inspiration. “I wanted to bridge the gap between staying productive and staying safe,” he said. In his own garage, Dave designed a unique, lifesaving electrical panel and JLL’s first engineering patent. The see-through device is made up of plugs that can be removed individually to provide access to each section of the breaker. The lack of downtime keeps clients happy, and the attention to safety keeps OSHA happy. “We knew it was a special idea,” said Gabriela Cleveland, Chief Counsel, Technology and Intellectual Capital at JLL. “The concept of the electric panel was so brilliant yet so simple and innovative that we thought, ‘Why not?’” she said. “I still get goose bumps talking about this stuff. JLL’s dedication to safety truly makes us stand out,” Dave said. Click here to watch Dave explain what a safe workplace means to him. JLL 2018 Annual Report | 4 Sustainable Shanghai World’s first double platinum in building standards We’re focused on what is good for business and for a sustainable future. This approach leads to responsible investment decisions for healthier, safer, more engaged people, and increased value for all of our stakeholders — Building a Better Tomorrow everywhere we can. Our Shanghai office at HKRI Taikoo Hui has recently been awarded the Leadership in Energy and Environmental Design (LEED) Platinum certification in the Interior Design and Construction (ID+C) category, setting a record high score in the process. This is the first project in the world to achieve platinum ratings for both LEED v4 and WELL v1, the highest standards in current operation. Anthony Couse, CEO, JLL Asia Pacific, says, “This shows that we walk the talk when it comes to sustainability. It demonstrates our commitment to creating a sustainable workplace that is healthy and productive for our clients and our people, and puts human experience at its heart.” Our Shanghai office includes smart systems such as dimmable LED lighting with daylight and occupancy sensors, and Energy Star-rated appliances to ensure energy efficiency. And even though the office is more than 25% larger than our previous address, electricity consumption has been reduced by 41%. We also purchased Renewable Energy Certificates (RECs), a growing trend in China’s drive toward green energy, offsetting 50% of the office’s greenhouse emissions for the next five years. Developed by the U.S. Green Building Council (USGBC), the LEED standard aims to promote environmental responsibility and efficient use of resources among building operators and owners. 5 | JLL 2018 Annual Report Click here to watch our Shanghai HQ film. JLL 2018 Annual Report | 6 7 | JLL 2018 Annual Report Moving Beyond A letter to our Stakeholders From Christian Ulbrich President and Chief Executive Officer As the inspiring stories on the preceding pages show, the desire to achieve ambitions sits at the heart of our culture at JLL, driven by our shared values of teamwork, ethics and excellence. Our clients strongly identify with this culture and with our commitments to a sustainable future and Building a Better Tomorrow. As we reflect in this annual report on an exceptionally successful year for JLL, including great progress in implementing our transformational Beyond strategy, we never forget that we are first and foremost a people business. A business that thrives because of the fantastic colleagues and clients we attract and the rewarding sense of achieving goals together. That’s why we chose Portraits of Ambition as this year’s report theme. And why I begin this letter by paying tribute to my 90,000 colleagues around the world for the impressive achievements recorded in this report and continued unwavering commitment to our culture and values. JLL 2018 Annual Report | 8 Paris, France In 2018, JLL delivered another very strong year of growth and record results, with consolidated revenue and fee revenue both 13% up at $16.3 billion and $6.5 billion, respectively. Adjusted EBITDA for the year rose by 24% to $953 million, with operating income climbing 29% to $707 million. Diluted earnings per share were $10.54 for the year, up from $6.03 in 2017, with adjusted diluted earnings per share of $12.25, up from $9.31 for the prior year. Highlights included the outstanding performance of our We are also increasingly benefitting from our substantial Americas region which fully grasped the opportunities multiyear investments in digital, data and artificial presented by the buoyant U.S. economy, record incentive fees intelligence (AI) capabilities, including through the for LaSalle Investment Management, and dynamic growth wholly-owned JLL Spark Global Venture Fund we established in our global Leasing and Corporate Solutions businesses. in mid-2018. Find more on that on the following pages and at www.us.jll.com/en/jll-spark. JLL’s growing competitive In Europe, Middle East and Africa (EMEA), we saw significant edge in proptech is already making an important difference, margin expansion alongside continued healthy revenue enhancing our service proposition and spurring further growth, and we recorded another good year across our Asia growth momentum. Pacific region, despite the slowing pace of China’s economic expansion. Importantly, all our business lines contributed A carefully calibrated and targeted combination of to our excellent overall results underlining the broad-based significant investment in people and proptech is at the strengths, resilience and balance across our global platform. core of our Beyond strategy for JLL’s long-term growth. Even where the general economic climate in many countries Let’s take a closer look.