Investor Presentation December 2010 Exhibit 99.1 |
Forward looking statements 2 Statements in this presentation regarding, among other things, future financial results and performance, achievements, plans and objectives and dividend payments may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance, achievements, plans and objectives of Jones Lang LaSalle to be materially different from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include those discussed under “Business,” “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures about Market Risk,” “Cautionary Note Regarding Forward-Looking Statements” and elsewhere in Jones Lang LaSalle’s Annual Report on Form 10-K for the year ended December 31, 2009 and in the Quarterly Report on Form 10-Q for the quarter ended September 30, 2010 and in other reports filed with the Securities and Exchange Commission. There can be no assurance that future dividends will be declared since the actual declaration of future dividends, and the establishment of record and payment dates, remains subject to final determination by the Company’s Board of Directors. Statements speak only as of the date of this presentation. Jones Lang LaSalle expressly disclaims any obligation or undertaking to update or revise any forward- looking statements contained herein to reflect any change in Jones Lang LaSalle’s expectations or results, or any change in events. © Jones Lang LaSalle IP, Inc. 2010. 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 on magnetic tape, or included in any information store and/or retrieval system without prior written permission of Jones Lang LaSalle IP, Inc. |
YTD 2010 FY 2009 FY 2008 (2) Americas 42% 42% 35% EMEA 25% 26% 32% Asia Pacific 23% 22% 20% LaSalle Investment Mgmt. 10% 10% 13% Consolidated 100% 100% 100% Property & Facility Management 25% Project & Development Services 13% LaSalle Inv. Mgmt. 10% Advisory Consulting & Other 12% Leasing 32% Capital Markets 8% United States 43% United Kingdom 10% Continental Europe 17% Greater China 6% Developing & Other Countries 10% Japan 4% India 3% Australia 7% Jones Lang LaSalle (1) Excludes equity losses (2) Includes Staubach revenue commencing July 11, 2008 2009 Revenue = $2.5 billion Leading integrated services and investment management firm … And Global Market Reach Diversified Service Lines… • Leading global market positions bolstered by over 30 mergers and acquisitions since 2005 • Corporate Outsourcing drives growth and provides annuity revenue • LaSalle Investment Management - a premier global investment manager winning new mandates • Cash generating business model with low leverage balance sheet Revenue by Segment (1) 3 |
YTD Q3 2010 YTD Q3 2009 Revenue $2.0B $1.7B % change in local currency 17% (6%) Net Income $69M ($56M) Adjusted Net Income (1) $81M $15M Earnings Per Share $1.57 ($1.50) Adjusted Earnings Per Share (1) $1.83 $0.40 EBITDA $179M $42M Adjusted EBITDA (1) $194M $126M Market Capitalization $3.7B $2.0B Demonstrating competitive strength • Leasing revenue up by more than 20% in all regions YTD; EMEA up 34% YTD • Property & Facility Management currently 25% of global revenue • LaSalle Investment Management has raised more than $5 billion in net capital commitments YTD • Adjusted operating income margin of 7.2% vs. 4.3% in 2009 YTD Q3 2010 Highlights Financial Scorecard (1) Adjusted for restructuring and non-cash co-investment charges 4 |
Asia Pacific Steady Broad-based Recovery in Revenue Note: % reflects change in local currency terms over YTD Q3 2009 ($ in millions; % change in local currency ) Americas EMEA Leasing Capital Markets & Hotels Property & Facility Management Project & Development Services Advisory, Consulting & Other Total RES Operating Revenue $410.2 $49.0 $182.7 $110.8 $80.1 $832.8 27% 97% 24% 4% 1% 21% $133.4 $89.3 $102.3 $82.8 $83.6 $491.4 34% 34% 13% 16% 5% 20% $97.1 $52.3 $214.4 $44.7 $46.8 $455.3 36% 55% 3% 33% 2% 16% $640.7 $190.6 $499.4 $238.3 $210.5 $1,779.5 30% 52% 12% 8% 2% 19% Total RES Revenue YTD Q3 2010 Real Estate Services 5 |
Solid Cash Flows and Balance Sheet Position • Strong cash from earnings growth • Paid first deferred Staubach obligation of $76 million (2) • Renewed and extended credit facility - Capacity increased to $1.1 billion, previously $840 million - Maturity extended to September 2015 • Investment grade ratings affirmed: Standard & Poor’s: BBB- Moody’s Investor Services: Baa2 YTD Q3 2010 Highlights Cash Flows YTD Q3 2010 YTD Q3 2009 Cash from Earnings $192 $135 Working Capital (84) (91) Cash from Operations $108 $44 Primary Uses Capital Expenses (1) (23) (31) Acquisitions & Deferred Payment Obligations (113) (15) Co-Investment (25) (26) Dividends (4) (4) Net Cash Outflows ($165) ($76) Net Share Activity & Other Financing (27) 192 Net Debt (Borrowings) / Repayments ($84) $160 Balance Sheet Q3 2010 Q3 2009 Cash $72 $57 Short Term Borrowings 29 57 Credit Facility 253 292 Net Bank Debt $210 $292 Deferred Business Obligations 299 392 Total Net Debt $509 $684 ($ in millions) (1) YTD Capital Expenditures for 2010 and 2009 net of tenant improvement allowances received were $22 million and $25 million, respectively (2) $78 million due less $2 million deferred in accordance with the merger agreement 6 (Outlook: Stable) (Outlook: Stable) |
Steady cyclical recovery continues Capital Markets Leading Real Estate Fundamentals Americas EMEA Asia Pacific As of Q3 2010 Capital Values Leasing Fundamentals London, Washington DC Paris, Seoul Beijing Capital Value growth slowing Capital Value growth accelerating Capital Value bottoming out Capital Value falling Hong Kong Detroit Brussels, Dallas Shanghai Amsterdam, Milan, Mumbai, Sydney Moscow, New York, Sao Paulo Chicago, San Francisco, Singapore, Toronto Berlin, Philadelphia, Stockholm, Tokyo Paris, Stockholm Beijing, Hong Kong London , Shanghai Milan Chicago, Rome, Seoul Rental growth slowing Rental growth falling Rental growth accelerating Rents bottoming out Detroit Los Angeles, New York Brussels Amsterdam, Atlanta, Dallas Berlin, Mumbai, San Francisco, Sydney, Tokyo Moscow, Singapore, Washington DC 7 The Jones Lang LaSalle Property Clocks SM |
Jones Lang LaSalle Global strategy for renewed growth G5 G1 G2 G4 G3 Build our leading local and regional market positions Grow our leading positions in Corporate Solutions Capture the leading share of global capital flows for investment sales Strengthen LaSalle Investment Management’s leadership position Connections: Differentiate by connecting across the firm, and with clients 8 |
Full productivity revenue of over $750 million Acquisitions Since 2005 Growing Market Share EMEA Americas Asia Pacific RL Davis Leechiu Creer NSC Sallmanns Shore Industrial Meghraj Rogers Chapman Littman Partnership RSP Group Area Zero Hargreaves Goswell Troostwijk Makelaars KHK Group Camilli & Veiel GVA Upstream Tetris Creevy LLH Ltd. Brune Alkas Kemper’s Churston Heard Staubach Spaulding & Slye Zietsman Klatskin CRA Standard Group ECD HIA TCF Strengthening our platform and connecting our people Asset Realty Managers G1 • Middle Market Corporate Solutions • Leasing • Capital Markets • Property Management • Project & Development Services • Retail • Industrial • Energy & Sustainability Services • Infrastructure Market share growth Product and services expansion 9 |
YTD Q3 2010: 52% in local currency (1) Capturing incremental revenue Local and Regional Services Asia Pacific EMEA Americas $593 $781 $753 $557 $317 $203 G1 ($ in millions) YTD Q3 2010: 29% in local currency (1) Full Year Comparison (1) Compared to YTD Q3 2009 Full Year Comparison ($ in millions) Leasing Capital Markets 10 |
Leading position with unique expertise across services & geographies • Accelerate new client wins and innovate for existing clients to broaden relationship - 47 new wins, 31 expansions and 44 renewals in 2009 - 170 million sq ft added; 34% increase from December 31, 2008 • Target new industry segments for continued market share growth - Replicate Financial/Pharma/IT success Global Corporate Solutions Integrated Facility Management Transaction Management Project Management Lease Administration Mobile Engineering Energy & Sustainable Services Strategic Consulting Corporate Finance / CMG Client Relationship Management G2 Corporate Retail Services YTD September 2010 Update • Property & Facility Management revenue up 12% in local currency vs. Q3 2009 YTD • 38 new wins, 22 expansions and 21 renewals • Project & Development Services revenue up 8% vs. Q3 2009 YTD; corporates starting to re-open capital expenditure budgets 11 |
YTD September 2010 Update Capture Global Capital Flows for Investment Sales Positioned to leverage leading share as markets recover G3 Source: Jones Lang LaSalle 35-40% growth in investment volumes projected in 2010 • Volumes continuing cyclical recovery • Demand high for core products; supply remains constrained • Global Hotels business gaining momentum 12 |
LaSalle Investment Management G4 Our # 1 priority: To deliver competitive investment performance Product Assets Under Management ($ in billions) Average Performance Private Equity U.K. $10.2 Above benchmark Continental Europe $3.9 Return +1x equity North American $12.4 Above benchmark Asia Pacific $6.6 Return +1x equity Public Securities $7.1 Above benchmark Total AUM $40.2 B Context • Our track record is everything! • It’s easy to invest, but it’s hard to invest prudently Impact • Reputation intact, client loyalty has strengthened • Capital raising YTD Q3 2010: $5.3 B net - Royal Mail takeover: £1.6 B + £300 M new investment - $1.6 B for a new U.S. fund 13 |
$29.8 B $40.6 B $49.7 B $46.2 B AUM ($ millions) $37.6 B $21.5 B $24.1 B $23.2 B 2002 to 2009 Advisory Fee Compound Annual Growth Rate = 16% LaSalle Investment Management G4 Accomplishments: 2000 - Present $40.2 B Q3 Year-To-Date Comparison 14 $83.4 $92.2 $101.4 $127.9 $178.1 $245.1 $277.9 $180.1 $176.2 $0 $50 $100 $150 $200 $250 $300 2002 2003 2004 2005 2006 2007 2008 Q3 YTD 2009 Q3 YTD 2010 |
• Large, financially and operationally stable global companies will gain market share • M & A likely to reshape the landscape • Developed countries will be favored for new investment • Investors will favor lower risk investments • Retail (HNW) capital will increase in importance • Private equity funds may be smaller; investor preference for larger separate account relationships • Fee structures likely to undergo further scrutiny / change • Governance / compliance will ascend in importance • Stay the course re: organic growth priorities - Deepen relationships with major institutional investors across products, markets - Customize investment programs • Capitalize on core open-end fund products • Establish KAG to access HNW German retail deposits • Build a business in China • Catalyze growth with strategic acquisitions - Current business stable and profitable - Strong corporate balance sheet • Bolster our securities business by forming JVs with attractive distributors LIM Priorities Current Industry Trends LaSalle Investment Management G4 Current industry trends & LIM priorities 15 |
Client First www.joneslanglasalle.com G5 Technology JLL OneView Connecting Across the Firm and With Clients Technology enabling value added connections 16 Connecting JLL to add value for clients JLL Brand Market Knowledge & Experience Thought Leadership & Research Colleagues Sharing Relationships Extensive Capabilities & Products |
Premier Leading Global Platform •Approximately 180 offices in over 60 countries worldwide •Research-driven global investment management business •Client demands for global expertise satisfied by few providers Jones Lang LaSalle Setting the industry standard for real estate service companies Positioned for Short and Long Term Success •Premier and expanding position in the corporate outsourcing space •Expand share in local markets •Leading global investment management business Solid Financial Strength and Position •Diversified revenues by service line and geography •Solid balance sheet with investment-grade ratings •Strong global platform positioned for opportunity & market recovery 17 |
Appendix 18 |
Asia Pacific Q3 2010 Real Estate Services Revenue Americas EMEA Leasing Capital Markets & Hotels Property & Facility Management Project & Development Services Advisory, Consulting & Other Total RES Operating Revenue $152.6 $25.2 $62.6 $40.7 $28.0 $309.1 38% 127% 20% 16% 6% 29% $47.8 $31.1 $32.6 $29.2 $28.6 $169.3 42% 11% 6% 20% 8% 18% $35.2 $18.3 $75.6 $19.2 $16.7 $165.0 21% 13% 5% 69% 8% 15% $235.6 $74.6 $170.8 $89.1 $73.3 $643.4 36% 34% 10% 25% 22% Total RES Revenue 2% ($ in millions; % change in local currency over Q3 2009) Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). 19 |
Jones Lang LaSalle and The Staubach Company closed the transaction to merge operations on July 11, 2008 • Staubach to receive guaranteed payments of $613 million, plus additional earn out opportunities of up to $114 million based on performance milestones - $223 million consideration at close - $123 million paid in cash, $100 million paid in Jones Lang LaSalle stock - $390 million of deferred payments (present value $339 million) - 1 st payment = $78m (paid August 2010 per contract terms), 2 nd payment = $156m (August 2011), 3 rd payment = $156m (August 2013) (1) • Approximately $8 million of intangible asset amortization remaining - Less than $2 million anticipated in 2010 • Approximately $2 million of P&L integration expense expected in 2010 Staubach Acquisition - Transaction Overview (1) 2nd payment can be deferred an additional 12 months based on performance 20 |
London, Washington DC Paris, Seoul Hong Kong, Shanghai Beijing Capital Value growth slowing Capital Value growth accelerating Capital Value bottoming out Capital Value falling Americas EMEA Asia Pacific Hong Kong Detroit Brussels, Dallas Shanghai Capital Values Q3 2009 Q3 2010 Capital Value growth slowing Capital Value falling Capital Value growth accelerating Capital Value bottoming out Singapore, Toronto As of Q3 2010 Amsterdam, Milan, Sao Paulo, Sydney Berlin, Mumbai, New York, San Francisco Stockholm Brussels, Moscow, Paris, Washington DC Amsterdam, Milan, Mumbai, Sydney Moscow, New York, Sao Paulo Chicago, San Francisco, Singapore, Toronto Beijing, London, Seoul Berlin, Philadelphia, Stockholm, Tokyo Detroit, Philadelphia Chicago, Dallas Tokyo 21 The Jones Lang LaSalle Property Clocks SM |
Paris, Stockholm Americas EMEA Asia Pacific Leasing Market Fundamentals Q3 2009 London, Sydney Amsterdam, Berlin, Dallas, Milan, San Francisco Los Angeles, New York Hong Kong, Mumbai Atlanta, Detroit, Seoul Shanghai Q3 2010 Beijing, Hong Kong London , Shanghai Milan Chicago, Rome, Seoul Detroit Los Angeles, New York As of Q3 2010 The Jones Lang LaSalle Property Clocks SM Brussels Amsterdam, Atlanta, Dallas Berlin, Mumbai, San Francisco, Sydney, Tokyo Moscow, Singapore, Washington DC Chicago, Rome Stockholm, Washington DC Brussels, Singapore Beijing, Paris Moscow, Tokyo 22 Rental growth slowing Rental growth falling Rental growth accelerating Rents bottoming out Rental growth slowing Rental growth falling Rental growth accelerating Rents bottoming out |
Note: % reflects change in local currency terms over comparable period in the prior year ($ in millions) Separate Account Management (Firm’s co-investment = $17.0M) • $19.0 billion of assets under management (16% increase from 2009) (1) AUM data reported on a one quarter lag Fund Management (Firm’s co-investment = $160.0M) • $14.1 billion of assets under management (13% decline from 2009) Public Securities (Firm’s co-investment = $0.1M) • $7.1 billion of assets under management (42% increase over 2009) Q3 2010 Statistics (1) Q3 2010 YTD 2010 New Separate Accounts Mandates $500 $4,200 Net New Equity for Funds and Public Securities 500 1,100 Net New Capital Commitments $1,000 $5,300 Total AUM $40.2 billion Operating Revenue 1% 5% Capital Raising Summary A premier global investment manager LaSalle Investment Management 23 |
Separate Account Management (Firm’s co-investment = $17.0M) • $19.0 billion of assets under management (16% increase from 2009) • Advisory fees • Transaction fees • Incentive fees • Equity earnings (1) AUM data reported on a one quarter lag. Fund Management (Firm’s co-investment = $160.0M) • $14.1 billion of assets under management (13% decline from 2009) • Advisory fees • Incentive fees • Equity earnings Public Securities (Firm’s co-investment = $0.1M) • $7.1 billion of assets under management (42% increase over 2009) • Advisory fees Description Q3 2010 Statistics (1) Typical Fee Structure Europe Private Equity $14.1 35.1% North American Private Equity $12.4 30.8% Asia Pacific Private Equity $6.6 16.4% Total Private Equity $33.1 82.3% Total Public Securities $7.1 17.7% Total AUM $40.2 100% Product Assets Under Management % ($ in billions) A premier global investment manager LaSalle Investment Management 24 |
($ in millions) Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income 25 2010 2009 2010 2009 GAAP net income (loss) 37.1 $ 19.8 $ 69.1 $ (56.1) $ Shares (in 000's) 44,089 43,300 44,064 37,432 GAAP earnings (loss) per share 0.84 $ 0.46 $ 1.57 $ (1.50) $ GAAP net income (loss) 37.1 $ 19.8 $ 69.1 $ (56.1) $ Restructuring, net of tax 0.3 3.6 4.2 31.1 Non-cash co-investment charges, net of tax 0.7 3.2 7.4 40.4 Adjusted net income 38.1 $ 26.6 $ 80.7 $ 15.4 $ Shares (in 000's) 44,089 43,300 44,064 38,880 Adjusted earnings per share 0.86 $ 0.61 $ 1.83 $ 0.40 $ Three Months Ended September 30, Nine Months Ended September 30, Note: Basic shares outstanding are used in the calculation of GAAP EPS for the nine months ending September 30, 2009, as the use of dilutive shares outstanding would cause that EPS calculation to be anti-dilutive. |
($ in millions) Reconciliation of GAAP Net Income (Loss) to EBITDA and Adjusted EBITDA 26 2010 2009 2010 2009 Net income (loss) 37.1 $ 19.8 $ 69.1 $ (56.1) $ Interest expense, net of interest income 11.5 16.3 35.7 43.6 Provision (benefit) for income taxes 11.1 3.5 20.8 (9.8) Depreciation and amortization 17.7 18.7 53.0 64.6 EBITDA 77.4 $ 58.3 $ 178.6 $ 42.3 $ Non-cash co-investment charges 0.9 3.7 9.6 47.5 Restructuring 0.4 4.2 5.5 36.6 Adjusted EBITDA 78.7 $ 66.2 $ 193.7 $ 126.4 $ Three Months Ended September 30, September 30, Nine Months Ended |