Investor Presentation February 2012 ..45,500 employees….200 offices….70 countries….1 global platform.. Exhibit 99.1 |
Table of Contents I. Company Description II. Global Growth Strategy III. Financial Overview IV. Appendix 2 |
Company Description |
Global real estate services Premier global investment manager • LaSalle Investment Management provides outstanding performance and service for clients with global real estate investment portfolios Shareholder opportunity Jones Lang LaSalle Shareholder value 2011 Revenue = $3.6 billion 4 Value creating real estate services and investment management firm • Investment expertise including core, value add, opportunistic and private investing across major property types • More than 300 institutional clients worldwide • Leading global markets positions • Consolidator in a consolidating industry • Productivity and margin expansion • Strategic, fully integrated services for real estate owners, occupiers and investors • Productivity and cost solutions for corporate clients seeking to optimize space and location • Industry leader recognized for deep market knowledge and execution expertise • Strong cash-generating business model • Revenue growth • Investment-grade balance sheet • Effective tax and interest expense management |
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”) Transformational M&A Extends Market Positions 2011 2008 The Staubach Company and Jones Lang LaSalle combine operations Largest merger in JLL history transforms U.S. local markets position 5 King Sturge (est. 1760) and Jones Lang LaSalle merge EMEA operations Enhances strength and depth of service capabilities in the UK and EMEA 1760 14% compound annual revenue growth rate since 1999 merger between LaSalle Partners and JLW 1957 Jones Lang Wootton expands into Asia Pacific 2007 Jones Lang LaSalle acquires Meghraj Property Consultants Private Ltd. (est. 1995) Establishes dominant market leading position in India |
Leading Brand Well Positioned for Growth 6 Market Trends Emerging markets to lead global expansion Demand for local and global services Outsourcing growth continues Top performers winning investor mandates Industry consolidation 2011 Revenue = $3.6B Jones Lang LaSalle Opportunity • Capitalize on leading global markets positions for improved transactional and annuity revenue • Continue Corporate Solutions leadership; capture emerging sectors (e.g. Healthcare, Infrastructure) • Leverage LaSalle’s investment performance and client loyalty for continued wins and capital raising • Pursue growth within G5 strategy and financial objectives |
Global Growth Strategy |
Jones Lang LaSalle Global Growth Strategy G2 G1 G4 G3 G5 Connections Build our local and regional leasing and capital markets businesses Strengthen our winning positions in Corporate Solutions Capture the leading share of global capital Grow LaSalle Investment Management’s leadership position flows for investment sales 8 |
as of Q4 2011 Rental Value growth slowing Rental Value growth accelerating Rental Values bottoming out Rental Values falling Leasing $593 $781 $753 ($ in millions) $1,000 JLL Leasing Revenue JLL Property Clock SM – Leasing Values $1,188 Dubai San Francisco Berlin Dallas, New York Atlanta, Washington DC Johannesburg, Frankfurt, Tokyo Chicago, Rome Los Angeles, Madrid Shanghai Singapore Hong Kong Seoul Mexico City Brussels Stockholm Sao Paulo Moscow London, Paris Sydney Milan Beijing Toronto Detroit Mumbai * Americas EMEA Asia Pacific *In July 2008, JLL acquired the Staubach Company with annual revenue of approximately $375 million. 9 Source: Jones Lang LaSalle |
Capital Markets $557 $317 $203 $306 $460 * Atlanta Dallas Toronto Mexico City Capital Value growth slowing Capital Value growth accelerating Capital Values bottoming out Capital Values falling Mumbai Beijing, Stockholm Shanghai, Washington DC, London Singapore Hong Kong Paris Milan, New York Madrid, Seoul, Detroit Frankfurt Los Angeles Berlin, Moscow Sydney Chicago San Francisco Sao Paulo Tokyo, Brussels Americas EMEA Asia Pacific *In May 2011, JLL acquired King Sturge with annual revenue of approximately $260 million (approx. 30% from Capital Markets). as of Q4 2011 ($ in millions) JLL Capital Markets Revenue JLL Property Clock SM – Capital Values 10 Source: Jones Lang LaSalle |
2012 Projected Value Changes for Prime Offices Click here to see the complete JLL Global Markets Perspective, including our 2012 outlook 11 Capital Values Rental Values + 10-20% + 5-10% + 0-5% - 0-5% - 5-10% + 20% - 10-20% Moscow, Shanghai, Mumbai Sydney, Tokyo Sao Paulo, New York* London*, Frankfurt, Paris, Stockholm, Boston, Chicago, Los Angeles, Washington DC Toronto, Tokyo, Moscow San Francisco, New York* Sydney, Mumbai, Boston, Chicago, Los Angeles, Washington DC, Sao Paulo, Stockholm Shanghai, London*, Frankfurt Dubai Brussels, Madrid, Mexico City Brussels, Madrid, Paris Mexico City Dubai Toronto, San Francisco Hong Kong, Singapore Hong Kong, Singapore Beijing Beijing *New York – Midtown, London – West End. Nominal rates in local currency. Source: Jones Lang LaSalle, January 2012 |
Global Capital Flows for Investment Sales * EMEA: In US$ terms, unchanged in Euro terms. Source: Jones Lang LaSalle, January 2012 Direct Commercial Real Estate Investment, 2005-2012 2012 volumes expected to match 2011, with downside risk 12 +10-15% -5-10%* 0% ($ in billions) |
Corporate Solutions 13 JLL Service Offerings JLL Client Wins Competitive Advantages Global Position Expertise across services & geographies to capitalize on market trends Space optimization Portfolio transparency Energy management Transformational outsourcing Large Corporates Middle Market Integrated Facility Management Transaction Advisory Services Project Management Lease Administration Labwell Lab Management Energy & Sustainable Services Strategic Consulting Corporate Finance / CMG Client Relationship Management Corporate Retail Services 2010 2011 2010 2011 2010 2011 2010 2011 |
$40.6 B $49.7 B $46.2 B AUM ($ millions) $39.9 B 2005 to 2011 Advisory Fees: 11% Compound Annual Growth Rate LaSalle Investment Management $41.3 B $29.8 B Global Financial Crisis Stabilized Advisory Fees Building Advisory Fees in Healthy Markets 14 $47.7 B Competitive Advantages Diversified global platform Investment performance at or above benchmarks for all business segments Core, Value Add, Opportunistic, Public Equity 300+ institutional clients Consistent client services delivery model Financial backing of well-capitalized parent company |
15 JLL Acquisition Objectives and Transformative Results The Staubach Company King Sturge Meghraj Trinity Funds Management Strategy Establish leading U.S. local market tenant rep position Strengthen local market scale, particularly in the U.K. Augment India corporate business with leading local presence Gain scale and credibility in Australia for LaSalle Purchase Price $613 million £197 million $60 million A$9 million Upfront Consideration 36% 50% 50% 100% Deferred Payment terms 5 years 5 years 5 years n/a EBITDA multiple 8.0x notional, 7.0x on PV basis 7.5x notional, 7.0x on PV basis 7.5x 4.0x Strategic Align with G5 strategy Enhance service delivery for clients Cultural alignment Meet financial goals Financial Profit growth to shareholders Neutral to accretive EBITDA multiples EPS accretive within 12-18 months Maintain investment grade strength |
Financial Overview |
2010 Consolidated Earnings Scorecard Note: 2011 adjusted for restructuring and intangible amortization, 2010 adjusted for restructuring and non-cash co-investment charges. 17 2011 Revenue $3.6B Adjusted Net Income $215M US GAAP: $164M Adjusted EPS $4.83 US GAAP: $3.70 Adjusted Operating Income $319M US GAAP: $251M Adj. Operating Income Margin 8.9% US GAAP: 7.0% $166M $3.77 $267M 9.1% $2.9B US GAAP: $158M US GAAP: $3.48 US GAAP: $261M US GAAP: 8.9% Revenue Contribution Operating Income Contribution YoY Growth: 23% YoY Growth: 18% |
Asia Pacific FY 2011 Real Estate Services Revenue ($ in millions; % change in USD ) Americas EMEA Leasing Capital Markets & Hotels Property & Facility Management Project & Development Services Advisory, Consulting & Other Total RES Operating Revenue $760.2 $136.1 $335.6 $178.5 $112.2 $1,522.6 19% 62% 25% 12% 2% 21% $236.1 $229.1 $152.8 $182.5 $173.5 $974.0 17% 62% 7% 59% 36% 34% $192.3 $94.8 $364.6 $80.8 $83.8 $816.3 22% 16% 20% 27% 17% 20% $1,188.6 $460.0 $853.0 $441.8 $369.5 $3,312.9 19% 50% 19% 31% 20% 24% Total RES Revenue Note: Segment and Consolidated Real Estate Services (“RES”) operating revenue exclude Equity earnings (losses). 18 |
Adjusted Operating Income and Medium Term Targets 19 Segment Contribution Consolidated (1) 2011 Operating income for EMEA adjusted for intangible amortization related to the King Sturge acquisition. (3) 2006 Operating income for LIM adjusted to exclude a large incentive fee from a single client; 2010 Operating income adjusted to exclude non-cash co-investment charges. (2) 2007 Operating income for Asia Pacific adjusted to exclude a large incentive fee from a single client. |
Americas Real Estate Services 20 2011 Segment Profile • Strong leasing performance with increased market share and productivity; revenue up 21% • Robust Capital Markets growth driven by enhanced teams and broadened service offering; well-positioned to capture recovering markets • High margin Corporate Solutions business with annuity-like revenue • Focus for 2012 on productivity gains and margin improvement Performance and Priorities Revenue $1,525M Operating Income $163M Operating Income Margin 10.7% EBITDA $201M EBITDA Margin 13.2% 2011 Americas Contribution: 42% of Total Firm Revenue, 52% of Adjusted Operating Income |
EMEA Real Estate Services 21 2011 Segment Profile • Successful 2011 integration of King Sturge; particularly strong performance in Capital Markets and Advisory • Improved profitability in large markets (e.g. UK, Germany) and stabilized performance from previous loss-makers • Eurozone crisis impact on 2012 performance remains unknown; potential to advise banks and other clients on portfolio repositioning or sales Revenue $974M Adj. Operating Income $39M Adj. Operating Income Margin 4.0% EBITDA $57M EBITDA Margin 5.9% 2011 EMEA Contribution: 27% of Total Firm Revenue, 9% of Adjusted Operating Income Note: EMEA results adjusted to exclude intangible amortization related to the King Sturge acquisition. Performance and Priorities |
Asia Pacific Real Estate Services 22 2011 Segment Profile • Robust revenue and margin growth in 2011 • Winning Corporate Solutions business provides profitable, recurring revenue • Strong market positions in important developed markets (Australia, Hong Kong, Singapore) • Significant growth opportunities in developing markets (China, India, Indonesia) Revenue $817M Operating Income $66M Operating Income Margin 8.1% EBITDA $78M EBITDA Margin 9.6% 2011 Asia Pacific Contribution: 23% of Total Firm Revenue, 21% of Adjusted Operating Income Performance and Priorities |
LaSalle Investment Management 23 2011 Segment Profile Revenue $275M Operating Income $57M Operating Income Margin 20.7% EBITDA $60M EBITDA Margin 21.7% 2011 LIM Contribution: 8% of Total Firm Revenue, 18% of Adjusted Operating Income Product Assets Under Management ($ in billions) Average Performance Private Equity U.K. $11.9 Above benchmark Continental Europe $4.3 Return: >1x equity North America $10.7 Above benchmark Asia Pacific $9.0 Return: >1x equity Public Securities $11.8 Above benchmark Total Q4 2011 AUM $47.7 B Note: AUM data reported on a one-quarter lag. Performance and Priorities • High margin advisory fees contribute to operating margin of 21% • Maximize incentive fees and equity earnings from performance of older vintage funds • Capital raising to replace maturing funds • Continue winning new separate account mandates |
Credit Facility Capacity $1.1B Solid Cash Flows and Balance Sheet Position ($ in millions) 24 2011 Key Highlights Cash from Earnings $311M Total Net Debt $643M Net Interest Expense $35.6M Investment Grade Ratings Baa2 | BBB- 2011 Q1 Q2 Q3 Q4 FY Cash from Earnings $42 $81 $68 $120 $311 Change in Working Capital (239) (20) 27 133 (99) Cash from / (used in) Operations ($197) $61 $95 $253 $212 Primary Uses Capital Expenses (17) (19) (20) (36) (92) Acquisitions & Deferred Payment Obligations (25) (210) (162) (19) (416) Co-Investment (2) 2 (47) 2 (45) Dividends - (7) - (7) (14) Net Cash Outflows ($44) ($234) ($229) ($60) ($567) Net Share Activity & Other Financing (4) (2) (8) (2) (16) Net Bank Debt Borrowings ($245) ($175) ($142) $191 ($371) (1) (1) Restructuring and acquisition related charges of $16 million and $34 million are included in Q3 and Q4 2011, respectively. Strong differentiating balance sheet supports business growth and opportunity |
Continued growth in corporate outsourcing Americas and Asia real estate growth tempered by EMEA uncertainty Key Takeaways 25 JLL Integrated global services Industry leading research and market expertise Superior client relationship management Strong brand Investment grade balance sheet JLL Actions Market Outlook Steady institutional capital flows into global real estate Leverage global positions to grow market share and continue client success in local markets Increase productivity and manage costs to improve margin Maintain financial strength and flexibility to respond to opportunities and challenges Continue to invest selectively and strategically to capitalize on market consolidation |
Appendix |
($ in millions) Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted EPS Twelve Months Ended December 31, 2011 2010 GAAP Net income attributable to common shareholders $ 164.0 $ 153.5 Shares (in 000s) 44,367 44,084 GAAP earnings per share $ 3.70 $ 3.48 GAAP Net income attributable to common shareholders $ 164.0 $ 153.5 Restructuring and acquisition charges, net 41.9 4.9 Intangible amortization, net 8.6 - Non-cash co-investment charges, net - 7.9 Adjusted net income $ 214.5 $ 166.3 Shares (in 000s) 44,367 44,084 Adjusted earnings per share $ 4.83 $ 3.77 27 |
Reconciliation of GAAP Operating Income to Adjusted Operating Income and Net Income to Adjusted EBITDA Twelve Months Ended December 31, 2011 2010 Operating Income $251.2 $260.7 Restructuring and acquisition charges 56.1 6.4 Intangible amortization 11.4 - Adjusted Operating Income $ 318.7 $267.1 GAAP Net income attributable to common shareholders $164.0 $153.5 Interest expense, net of interest income 35.6 45.8 Provision for income taxes 56.4 49.0 Depreciation and amortization 82.8 71.6 EBITDA $ 338.8 $ 319.9 Restructuring and acquisition charges 56.1 6.4 Non-cash co-investment charges - 10.4 Adjusted EBITDA $ 394.9 $ 336.7 28 ($ in millions) |
Forward looking statements 29 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, 2010 and in the Quarterly Report on Form 10-Q for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011, 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. 2012. 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. |