Investor Presentation February 2010 ..40,000 employees….185 offices….60 countries….1 global platform.. 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. |
Table of Contents I. Company Description II. Financial Overview III. Market Environment IV. Global Growth Strategy V. 2011 Priorities 3 |
Company Description |
Jones Lang Wootton founded in London 1783 1968 1997 1999 LaSalle Partners founded, operating primarily in the Americas LaSalle Partners initial public offering LaSalle Partners and Jones Lang Wootton merge to create Jones Lang LaSalle Integrated global platform (NYSE ticker “JLL”) Jones Lang LaSalle Company history Present 2008 The Staubach Company and Jones Lang LaSalle combine operations Largest merger in JLL history transforms U.S. local markets position 5 • Integrated global services platform • Industry-leading research • Superior client relationship management • Consistent service delivery • Innovative solutions to maximize value • Strong brand • Investment grade balance sheet Leasing Capital Markets & Hotels Property & Facility Mgmt. Project & Development Services Advisory & Consulting Investment Management $2.9B 2010 Revenue |
FY 2010 FY 2009 Americas 43% 42% EMEA 25% 26% Asia Pacific 23% 22% LaSalle Investment Mgmt. 9% 10% Consolidated 100% 100% Property & Facility Management 24% Project & Development Services 12% LaSalle Inv. Mgmt. 9% Advisory Consulting & Other 11% Leasing 34% Capital Markets 10% United States 44% United Kingdom 11% Continental Europe 15% Greater China 5% Developing & Other Countries 10% Japan 4% India 4% Australia 7% Jones Lang LaSalle (1) Excludes equity losses 2010 Revenue = $2.9 billion … And Global Market Reach Diversified Service Lines… • Leading global market positions bolstered by more than 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 investment grade balance sheet Revenue by Segment (1) Leading integrated services and investment management firm 6 |
33 acquisitions with full productivity revenue of $750 million Market Share and Service Line Expansion 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 • Middle Market Corporate Solutions • Leasing • Capital Markets • Property Management • Project & Development Services • Retail • Industrial • Energy & Sustainability Services • Infrastructure • Hospital / Healthcare Market share growth Product and services expansion 7 |
$40.6 B $49.7 B $46.2 B AUM ($ millions) $39.9 B 2005 to 2010 Advisory Fees: 13% Compound Annual Growth Rate • Favors major institutional markets, serves international investors & supports public and private investing - More than 300 institutional clients worldwide - investor base greater than 90% institutional • Core, value add, opportunistic private investing across major property types • Consistent client service delivery system - worldwide • Fully integrated global management team, compensation linked to growth in high-margin advisory revenue • Results: Ability to weather global property cycles, annuity revenue growth financial stability, achieved scalable operations LaSalle Investment Management A decade of accomplishments $41.3 B 8 $29.8 B Global Financial Crisis Stabilized Advisory Fees Building Advisory Fees in Healthy Markets Built a global platform: Expertise developed across: |
Jones Lang LaSalle More than 40,000 employees driving growth across service lines LEED-accredited professionals 585 Property and corporate facilities under management (s.f.) 1.8B Investment assets under management $41B Tenant representation transactions (s.f.) 8,400 transactions 159M Agency leasing transactions (s.f.) 19,400 transactions 323M Annual energy savings for clients $125M Return to Table of Contents Global JLL Hotels Activity $4.1B 9 Property & Facility Management 24% Project & Development Services 12% LaSalle Inv. Mgmt. 9% Advisory Consulting & Other 11% Leasing 34% Capital Markets 10% Global JLL Capital Markets Activity $33B |
Financial Overview |
• Record revenue of $2.9 billion, up 17% in local currency over 2009 • Global Leasing revenue reaches $1 billion; up by more than 20% in all regions • Property & Facility Management currently 24% of global revenue • LaSalle Investment Management raised $5 billion in net capital commitments; AUM = $41 billion • Adjusted operating income margin of 9.1% vs. 6.6% in 2009 Demonstrating competitive strength Consolidated Earnings Scorecard 2010 Highlights 11 FY 2010 FY 2009 Revenue $2.9B $2.5B % change in local currency 17% (5%) Net Income $154M ($4M) Adjusted Net Income (1) $166M $70M Earnings Per Share $3.48 ($0.11) Adjusted Earnings Per Share (1) $3.77 $1.75 Adjusted EBITDA $336M $238M Adjusted EBITDA margin 11.5% 9.6% Market Capitalization $3.6B $2.5B (1) Adjusted for restructuring and non-cash co-investment charges |
2010 Accomplishments and Trends Consolidated – Full-year revenue of more than $2.9 billion – Adjusted operating income margin of 9.1%, adjusted EBITDA margin of 11.5% – Leasing revenue increased 28% – Strong Capital Markets & Hotels revenue growth – 2010 high-impact hires provide momentum into 2011 – Larger markets 9-12 months into cyclical recovery – Improved productivity in transactional businesses – Retail, Corporate Solutions, Tetris provide improved revenue opportunities – Both U.S. and Regional multi- national corporate wins – Over 50M sf added to Property Management annuity base – Second-best capital raising year in LaSalle history: $5B – Nearly $3.2B capital invested – Focused on performance Americas EMEA Asia Pacific LaSalle 12 |
FY 2010 Revenue Performance Note: Equity losses of $58.9M and $11.4M in 2009 and 2010, respectively, are included in segment results, however, are excluded from Consolidated totals. ($ in millions; % change in local currency) Americas EMEA Asia Pacific Consolidated 17% LaSalle $1,031.6 $1,261.5 13 |
Asia Pacific Americas EMEA Leasing Capital Markets & Hotels Property & Facility Management Project & Development Services Advisory, Consulting & Other Total RES Operating Revenue $637.9 $84.1 $269.4 $158.9 $110.9 $1,261.2 28% 120% 19% 1% 1% 22% $202.6 $141.2 $142.9 $115.0 $127.2 $728.9 22% 37% 8% 11% 7% 17% $159.4 $80.4 $303.7 $63.5 $71.4 $678.4 34% 25% 6% 35% 11% 17% $999.9 $305.7 $716.0 $337.4 $309.5 $2,668.5 27% 51% 11% 9% 5% 18% Total RES Revenue Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). Real Estate Services Revenue ($ in millions; % change in local currency) 2010 Real Estate Services 14 |
FY 2010: 51% in local currency (1) $593 $781 $753 $557 $317 $203 ($ in millions) FY 2010: 27% in local currency (1) Full Year Comparison (1) Compared to FY 2009 Full Year Comparison ($ in millions) Leasing Capital Markets $1,000 $306 Local and Regional Real Estate Services Leasing and Capital Markets capturing incremental revenue Asia Pacific EMEA Americas 15 |
Solid Cash Flows and Balance Sheet Position • Strong cash from earnings growth • Net debt repayment of $250 million • 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- (Outlook: Stable) Moody’s Investor Services: Baa2 (Outlook: Stable) Cash Flows FY 2010 FY 2009 Cash from Earnings $316 $244 Working Capital 68 7 Cash from Operations $384 $251 Primary Uses Capital Expenses (1) (48) (44) Acquisitions & Deferred Payment Obligations (130) (27) Co-Investment (19) (39) Dividends (9) (8) Net Cash Outflows ($206) ($118) Net Share Activity & Other Financing (23) 201 Net Bank Debt (Borrowings) / Repayments $155 $334 Balance Sheet FY 2010 FY 2009 Cash $252 $69 Short Term Borrowings 28 23 Credit Facility 198 175 Net Bank Debt ($26) $129 Deferred Business Obligations 299 394 Total Net Debt $273 $523 ($ in millions) (1) Capital Expenditures for 2010 and 2009 net of tenant improvement allowances received were $46 million and $36 million, respectively (2) $78 million due less $2 million deferred in accordance with the merger agreement 2010 Highlights 16 |
Solid Cash Flows and Balance Sheet ($ in millions) Return to Table of Contents Positioned to drive growth and investment 2010 Free Cash Flow (1) 17 (1) Free cash flow calculated as EBITDA plus non-cash charges and change in working capital Investment grade balance sheet Effective tax management (24% effective tax rate) Disciplined CapEx spending $440 Opportunity to grow and invest in the business |
Market Environment |
Increasingly synchronized recovery Capital Markets Leading Real Estate Fundamentals Americas EMEA Asia Pacific As of Q4 2010 Capital Values Leasing Fundamentals The Jones Lang LaSalle Property Clocks SM 19 Capital Value growth slowing Capital Value growth accelerating Capital Value bottoming out Capital Value falling Hong Kong, London, Sao Paulo Washington DC Shanghai Dallas, Mumbai, Seoul Sydney, Tokyo Singapore Brussels Moscow Berlin, Paris, Stockholm Amsterdam, Milan New York San Francisco Chicago, Toronto Detroit Beijing Singapore, Washington DC Hong Kong Rental Value growth slowing Rental Value growth accelerating Rental Values bottoming out Rental Values falling Paris, Tokyo Shanghai, Sydney Chicago, Seoul Amsterdam, New York Berlin, Mumbai, San Francisco London Brussels Toronto Moscow, Stockholm Detroit Dallas Sao Paulo Beijing Milan |
Based on rents for Grade A space in CBD or equivalent. In local currency. Source: Jones Lang LaSalle, First Quarter 2011 Global Market Perspective Americas Europe Asia Pacific 2010 rental change Prime Offices 20 % change -35 -30 -25 -20 -15 -10 -5 0 5 10 15 20 25 30 35 Dubai Madrid Los Angeles Frankfurt Tokyo Amsterdam New York Chicago Mumbai Sydney Toronto Paris Washington DC San Francisco Brussels London Shanghai Sao Paulo Moscow Singapore Hong Kong |
Global Markets Perspective Prime offices – projected value change in 2011 *New York – Midtown, London – West End. Nominal rates in local currency. Source: Jones Lang LaSalle, First Quarter 2011 Global Market Perspective Capital Values Rental Values Return to Table of Contents + 10-20% + 5-10% + 0-5% - 0-5% - 5-10% + 20% - 10-20% Click here to see the JLL 2011 Real Estate Outlook, including our Top 10 trends for 2011 21 Shanghai, Singapore, Tokyo, Moscow, Sao Paulo, New York*, San Francisco, Toronto, Washington DC London*, Paris Sydney Amsterdam, Brussels, Frankfurt Chicago, Los Angeles, Mumbai Madrid Shanghai, Singapore, Tokyo, New York*, San Francisco, Sao Paulo, Moscow, Paris, Toronto, Washington DC London* Chicago, Los Angeles Amsterdam, Brussels Frankfurt, Mumbai, Sydney Madrid Hong Kong Dubai Dubai Hong Kong |
Global Growth Strategy |
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 23 |
Raleigh/Durham Denver Philadelphia Boston CBD Atlanta New York Houston Northern New Jersey Southern California Chicago CBD DC/Northern VA Chicago Suburbs Orange County Phoenix Charlotte San Diego Suburban Maryland Boston Suburbs/ Cambridge Dallas / Ft. Worth Ft Lauderdale Miami Merger Impact: Market Leadership • Reinforced JLL’s position as the high quality brand for occupier clients • Significantly improved our market position; 990 brokers in the field today; up more than 200% over 2007 • Attained a market leading tenant representation position in 22 markets (vs. 6 markets in 2007) • Built Industrial market presence; 220 professional brokers in 40 markets; #3 or better in top 8 markets Local and Regional Services G1 Staubach merger transforms U.S. local markets position 2009 As of Year End ‘09; Market share based on SF of completed deals Source: JLL Research & CoStar 24 2007 Market Leader – #1-2-3 Lagging – #4 or below Americas Leasing revenue growth of 29% in 2010 Southern California (excluding San Diego) Philadelphia Boston Atlanta Northern New Jersey Chicago Raleigh/Durham DC Metro San Francisco Silicon Valley Charlotte Dallas / Ft. Worth New York Silicon Valley San Francisco |
Local and Regional Services G1 European retail acquisitions providing scale in key markets 25 • Managing 81 million sq ft of retail assets • Leasing 75 million sq ft of space in 200 shopping centers • Valuation of 450 shopping centres of 97 million sq ft • More than 1,000 dedicated retail staff across Europe • EMEA’s only dedicated regional retail capital markets team, with more than 80 professionals working in more than 12 markets Fully integrated approach maximizing client value Over €1.3bn in Multi Portfolio acquisition Over €513m in 2 acquisitions 3.6m sq ft 11 Shopping Centres Over €2.5 bn disposal advice EMEA Retail revenue = approximately 20% of Total EMEA revenue in 2010 Select EMEA Retail highlights: Approx. €2.5 bn valued quarterly |
Leading position with unique expertise across services & geographies • Accelerate new client wins and innovate for existing clients to broaden relationship - 60 new wins, 33 expansions and 32 renewals in 2010 - More than 700 million sq ft under management as of December 31, 2010; 18% compound annual growth rate over the past 5 years • Target new industry segments for continued market share growth - Replicate Financial/Pharma/IT success Global Corporate Solutions G2 2010 Highlights • Property & Facility Management revenue up 11% in local currency vs. 2009 • Project & Development Services revenue up 9% vs. 2009; corporates starting to re-open capital expenditure budgets 26 Integrated Facility Management Transaction Management Project Management Lease Administration Mobile Engineering Energy & Sustainable Services Strategic Consulting Corporate Finance / CMG Client Relationship Management Corporate Retail Services |
Asia Pacific gaining share with local and multinational corporates Global Corporate Solutions G2 27 Alcatel-Lucent Philips Sanyo Wipro Infosys Sony Telestra AFP Centrelink Fonterra Citi Merck |
Leasing Receivership Services Development & Construction Management Property & Asset Management Loan Restructuring & Debt Advisory Research on Local Martkets Planning & Developing Strategic Review Investment Sales Leasing Receivership Services Development & Construction Management Property & Asset Management Loan Restructuring & Debt Advisory Research on Local Martkets Planning & Developing Strategic Review Leasing Receivership Services Development & Construction Management Property & Asset Management Loan Restructuring & Debt Advisory Research on Local Martkets Planning & Developing Strategic Review Leasing Receivership Services Development & Construction Management Property & Asset Management Loan Restructuring & Debt Advisory Research on Local Martkets Planning & Developing Strategic Review Investment Sales Connecting clients to innovative solutions Connecting clients to innovative solutions 2010 Highlights Capture Global Capital Flows for Investment Sales Positioned to leverage leading share as markets recover G3 Source: Jones Lang LaSalle • Volumes continuing cyclical recovery • Demand high for core products; supply remains constrained • Global Hotels business gaining momentum; captured $4.1B of $24.3B total deal volume in 2010 2011 volumes expected to increase a further 20-25% +40% +10-15% +15-20% Direct Commercial Real Estate Investment, 2005-2011 28 For more information on Jones Lang LaSalle Hotels, visit www.joneslanglasallehotels.com. |
• $5 billion of net new capital raised, 2 nd best year in LaSalle history • More than $3 billion invested worldwide in 2010 • Healthy margins generated from Advisory Fees A premier global investment manager 29 2010 Highlights Product Assets Under Management ($ in billions) Average Performance Private Equity U.K. $11.3 Above benchmark Continental Europe $4.2 Return: +1x equity North America $9.8 Above benchmark Asia Pacific $7.3 Return: +1x equity Public Securities $8.7 Above benchmark Total Q4 2010 AUM $41.3 B AUM by Fund type Note: AUM data reported on a one-quarter lag ($ in billions) LaSalle Investment Management G4 |
Connecting JLL to add value for clients JLL Brand Market Knowledge & Experience Thought Leadership & Research Colleagues Sharing Relationships Extensive Capabilities & Products Client First www.joneslanglasalle.com G5 Technology JLL OneView Connecting Across the Firm and With Clients Technology enabling value added connections 30 |
Energy and Sustainability Services Energy conservation and cost savings a growing priority “I chose Ray Quartararo and Jones Lang LaSalle because of our successful history together taking on and figuring out difficult projects and the company’s deep sustainability expertise and track record.” --Anthony E. Malkin, Building Owner, Empire State Building Company • Nearly 600 LEED Accredited Professionals • 116 LEED projects globally, including • 1 LEED Platinum high-rise; One Bryant Park, New York • 1 LEED building registered in India; Sohrabji Godrej Green • 1 LEED-EB O&M multi-tenant building in the U.S.; 550 W. Washington, Chicago • Documented over $125M in energy savings for clients • Reduced 563,000 tons of greenhouse gas emissions • Equivalent to the emissions of nearly 70 million gallons of gasoline consumed Making an Impact G5 Return to Table of Contents 31 st st st |
2011 Priorites |
2011 Priorities Enhance margin and strengthen income quality Note: Adjusted Operating Income excludes restructuring charges, adjusted EBITDA excludes restructuring charges and non-cash co-investment charges. 2007 results have been adjusted to exclude significant advisory fees from one large corporate portfolio. Margin Performance 33 • Leverage strengthening local markets positions • Continuing growing scale in Corporate Solutions • Maintain LaSalle Investment Management’s stable advisory fee margins; enhance with transaction and incentive fees • Grow margin to medium term target of 12% Historic Adjusted Operating Income Margin Historic Adjusted EBITDA Margin |
2011 Priorities Capture consolidation opportunities in the marketplace 34 Opportunity Target Secure market leadership – Goal to be #1, #2 or #3 in targeted local and regional market services Provide specialized technical services to Corporate Solutions outsourcing clients Capture recovering cross-border capital flows and strengthen Hotels market Maximize opportunities created by financial regulatory legislation and financial crisis fallout Differentiate by connecting across the firm, and with clients Financial Objective • Major growth to shareholders • Accretive within 12-18 months • Maintain investment grade strength Strategy G1 G2 G3 G4 G5 |
• Approximately 185 offices in more than 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 • Premier and expanding position in the corporate outsourcing space • Expand share in local markets • Leading global investment management business • Diversified revenues by service line and geography • Solid balance sheet with investment-grade ratings • Strong global platform positioned for opportunity & market recovery Return to Table of Contents Premier Leading Global Platform Positioned for Short and Long Term Success Solid Financial Strength and Position 35 |
Appendix |
FY 2010 FY 2009 GAAP net income (loss) $ 153.5 $ (4.1) Shares (in 000's) 44,084 38,543 GAAP earnings (loss) per share $ 3.48 $ (0.11) GAAP net income (loss) $ 153.5 $ (4.1) Restructuring, net of tax 4.9 35.6 Non-cash co-investment charges, net of tax 7.9 38.5 Adjusted net income $ 166.3 $ 70.0 Shares (in 000's) 44,084 40,106 Adjusted earnings per share $ 3.77 $ 1.75 ($ in millions) Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income Note: Basic shares outstanding are used in the calculation of GAAP EPS for the twelve months ending December 31, 2009, as the use of dilutive shares outstanding would cause that EPS calculation to be anti-dilutive. 37 Return to Consolidated Earnings Scorecard Return to Table of Contents |
($ in millions) Reconciliation of GAAP Net Income (Loss) to EBITDA and Adjusted EBITDA 38 FY 2010 FY 2009 Net income (loss) $ 153.5 Interest expense, net of interest income 45.8 55.0 Provision (benefit) for income taxes 49.0 5.7 Depreciation and amortization 71.6 83.3 EBITDA $ 319.9 $ 139.9 Non-cash co-investment charges 10.4 51.3 Restructuring 6.4 47.4 Adjusted EBITDA $ 336.7 $ 238.6 Return to Consolidated Earnings Scorecard Return to Table of Contents $ (4.1) |
FY 2010 FY 2009 Net Income (Loss) $154 ($4) Interest Expense, net of interest income 46 55 Provision (benefit) for income taxes 49 6 Depreciation and amortization 72 83 EBITDA $321 $140 Change in working capital 68 7 Deferred Compensation Amortization and non-cash co-investment charges 51 97 Free Cash Flow $440 $244 ($ in millions) Reconciliation of GAAP Net Income (Loss) to EBITDA and Free Cash Flows Return to Table of Contents 39 Return to Free Cash Flow Chart |