EXHIBIT 99.1
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JONES LANG LASALLE - PAGE 1:
JONES LANG LASALLE
NOVEMBER 2002
[ Jones Lang LaSalle Logo ]
JONES LANG LASALLE - PAGE - 2:
AGENDA
COMPANY OVERVIEW
DRIVING FINANCIAL PERFORMANCE
JONES LANG LASALLE - PAGE - 3:
HISTORY OF JONES LANG LASALLE - BUILDING A GLOBAL PLATFORM
Jones Lang LaSalle created by the merger of equals
Integrated global platform (NYSE ticker "JLL")
1999
1998
LaSalle Partners acquires Compass Management & Leasing
1997
LaSalle Partners initial public offering - NYSE
1968
LaSalle Partners founded in Chicago
1958
Jones Lang Wootton expands overseas
1783
Jones Lang Wootton founded in London
JONES LANG LASALLE - PAGE - 4:
OUR MISSION
To deliver exceptional strategic,
fully integrated services and
solutions for real estate owners,
occupiers and investors
worldwide
JONES LANG LASALLE - PAGE - 5:
CLIENT SERVICE MODEL
[ Graphic indicating - Owners & Occupiers and Investors encircling and
indicating - ]
Strategic Solutions - through
Research Global Capabilities
Technology Innovation
CORPORATE SOLUTIONS INVESTOR SERVICES
- Space Acquisition - Buying & Selling
- Space Disposition - Leasing
- Facilities Management - Property Management
- Project & Development - Project & Development
Services Services
- Consulting - Consulting
CAPITAL MARKETS INVESTMENT MANAGEMENT
- Acquisitions & Dispositions - Investment Strategy
- Corporate Finance - Private & Public
- Financial Restructuring Markets
- Sale & Leaseback - Direct & Indirect
- Debt & Equity Raising Investment
- Partnering - Income, Growth &
Opportunistic
Programs
JONES LANG LASALLE - PAGE - 6:
OUR VISION -- To Be The Chosen Real Estate Expert and Strategic Advisor To
The Leading Owners, Occupiers and Investors Around the World
THREE YEAR OBJECTIVES FOR OUR STAKEHOLDER GROUPS
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CLIENTS PEOPLE SHAREHOLDERS
To be our clients' To attract, develop To deliver
trusted advisor & & retain the best consistently success-
preferred business people ful financial
partner performance
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.. 50% of our top 100 . 90% of our people . 15% long-term
clients take a would recommend earnings growth
minimum of 2 services our Firm as an
and employ our Firm employer . Improve margins year
in those of our over year
regions in which
they operate . Improve the average . Create a strong
employee satisfac- balance sheet
.. Improve the average tion rating each (Leverage 1:4)
client satisfaction year, achieving a
ratings each year rating of at least . 15+% ROE
achieving at least 4.5 in 2004
4.5 in 2004
. Reduce voluntary
turnover to 10%
maximum by 2004
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FIVE GLOBAL STRATEGIES
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Exceed Deliver a Develop a Achieve Improve
Client recognised high sustainable, operational
Expectations and performance profitable efficiency
differen- team growth
tiated brand culture
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JONES LANG LASALLE - PAGE - 7:
DIVERSIFIED REVENUE SOURCES
[ Graphic / Pie Charts indicating ]
2001
GEOGRAPHIC SPREAD
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Europe -- 43%
Americas -- 42%
Asia Pacific -- 15%
JONES LANG LASALLE - PAGE - 8:
DIVERSIFIED REVENUE SOURCES
[ Graphic / Pie Charts indicating ]
2001
BUSINESS UNIT SPREAD
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IMPLEMENTATION SERVICES
Valuations & Consulting -- 8%
Capital Markets -- 18%
Agency Leasing -- 18%
Tenant Representation -- 10%
MANAGEMENT AND ADVISORY SERVICES
Property Management (Investors) -- 19%
Property Management (Corporates) -- 5%
Project and Development Management -- 11%
Investment Management -- 11%
ANNUITY-LIKE REVENUE GREATER THAN 50%
JONES LANG LASALLE - PAGE - 9:
CAPITALIZING ON OUR STRENGTHS
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GROWTH DRIVER OUR STRENGTHS HOW WE CAPITALIZE
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Fragmented . Integrated global . Apply "Best
industry platform Practices"
. Breadth of services . Disciplined client
relationship
management
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Outsourcing . Global platform . Deliver integrated
services
. Consistent service . Create client
efficiency with
. Innovative technology technology
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Cross-border . Global platform . Expand Capital Markets
capital flows and Corporate Finance
. Investment management capabilities geo-
expertise graphically
. Global research . Deploy co-investment
capital in Investment
Management business
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Share of client . Consistent service . Convert 1X clients
to 2X and 3X
. Integrated marketing
. Explicit cross-
selling objectives
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JONES LANG LASALLE - PAGE - 10:
THE LEADING REAL ESTATE SERVICES BRAND
. #1 Global Platform
- 100 markets on five continents
- 7,200 real estate professionals
- Technology leader
. #1 Property Manager in the World
- 725 million s.f. under management
. #3 Real Estate Investment Advisor in the World
- $23 billion of assets under management
. #1 Real Estate Research Firm in the World
- 160 dedicated professionals
JONES LANG LASALLE - PAGE - 11:
[ JONES LANG LASALLE - LOGO ]
DRIVING FINANCIAL PERFORMANCE
JONES LANG LASALLE - PAGE - 12:
PERFORMED IN A TOUGH 2001 ENVIRONMENT
$MM (except per share data)
Actual
---------------------- % Change
2001 (1) 2000 (2) Prior Year
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Revenue $ 882 $ 923 (4.4%)
Operating Expenses 792 831 (4.7%)
ADJUSTED OPERATING INCOME 90 92 (2.2%)
Interest Expense 20 27 (25.9%)
Income Taxes 29 25 16.0%
ADJUSTED NET INCOME $ 41 $ 40 --
ADJUSTED EPS $1.31 $1.31 --
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Adjusted EBITDA $ 137 $ 135 1.5%
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Notes:
(1) Adjusted to exclude non-operating charges.
(2) Adjusted to exclude non-recurring merger related charges
and include impact of SAB 101.
JONES LANG LASALLE - PAGE - 13:
STRONG BALANCE SHEET AND DEBT RATINGS
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Current Debt Ratings:
Standard & Poor's: BBB-
Moody's: Bal
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$MM
09/30/02 09/30/01 09/30/00
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Short-term Borrowings $ 16 $ 10 $ 13
Long-term Debt:
Credit Facilities 61 115 146
Senior Notes (1) 163 150 146
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TOTAL FUNDED DEBT 240 275 305
Minority Interest 3 1 1
Book Equity 345 313 325
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Total Capitalization $588 $589 $631
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Notes: (1) EUR 165 million.
JONES LANG LASALLE - PAGE - 14:
OPERATING IN A DIFFICULT ENVIRONMENT
. REVENUE OPPORTUNITIES
- Capitalize on Outsourcing trend
- Increase share of clients and market - 1X to 2x and 3x
- Develop Corporate Solutions business in Europe
and expand Investor Services business in Americas
- Expand Investment Management business in all regions
. OPERATING EFFICIENCY
- Continue to focus on cost management and streamline
back office
- Apply client profitability model in rationalizing
clients and geographic markets
- Remain a leader in information technology, improving
client service, reducing operating costs and
increasing process efficiency
JONES LANG LASALLE - PAGE - 15:
LOWER 2002 REVENUES CUSHIONED BY COST SAVINGS
$MM (except per share data)
Q3 YTD Actual
---------------------- % Change
2002 2001 Prior Year
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Revenue $ 560 $ 618 (9.4%)
Operating Expenses 534 614 (13.0%)
OPERATING INCOME 26 4 550.0%
Interest Expense 13 15 (13.3%)
Income Tax Expense 3 1 200.0%
Minority Interest and Other -- 1 (100.0%)
NET INCOME $ 10 $ (13) --
EPS $ 0.31 $(0.42) --
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EBITDA $ 52 $ 39 33.3%
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JONES LANG LASALLE - PAGE - 16:
CASH FLOW REMAINS STRONG
2002 2002
Revised Original
$MM Forecast Guidance
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EBITDA $ 110 $ 150
Interest Expense 18 21
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Income Tax Expense 16 37
Free Cash Flow $ 76 $ 92
Uses:
Debt Pay Down $ 20 $ 20
Co-Investment 16 19
Capital Expenditures 18 28
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Working Capital $ 22 $ 28
JONES LANG LASALLE - PAGE - 17:
2002 REVISED OUTLOOK
. Revised 2002 EPS guidance of $1.00 to $1.20
. EBITDA approximately $110 million
. Effective tax rate of 36%; down from 42% in 2001
. Debt paid down in excess of $20 million
JONES LANG LASALLE - PAGE - 18:
[ JONES LANG LASALLE - LOGO ]
APPENDIX - Broad Range of Integrated Services
JONES LANG LASALLE - PAGE - 19:
BROAD RANGE OF INTEGRATED SERVICES
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2001 Primary
Business Unit Statistics Revenue Type Business Synergies
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Property . 530 million . Annuity type . Agency Leasing
Management s.f. management fees
(Investors) paid monthly . Project &
or quarterly Development
Management
. Investment
Management
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Property . 195 million . Annuity type . Project &
Management s.f. management fees Development
(Corporates) (2000 Combined paid quarterly Management
Property Man-
agement - 700 . Tenant
million sq ft) Representation
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Project & . $2.3 billion . Strategic . Property
Development of construction Alliances Management
Management costs (Investors)
(2000: $1.9 . Percentage of
billion) construction . Property
costs Management
(Corporates)
. Tenant
Representation
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JONES LANG LASALLE - PAGE - 20:
BROAD RANGE OF INTEGRATED SERVICES
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2001 Primary
Business Unit Statistics Revenue Type Business Synergies
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Tenant . 3,300 trans- . 80% "recurring" . Project &
Representation actions income from Development
33 million strategic Management
sq ft alliances
(2000: 2,800
transactions . Property
and 34 million Management
sq ft) (Corporates)
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Agency . 9,100 trans- . Recurring income . Property
Leasing actions sourced from Management
82 million s.f. Property Manage- (Investors)
(2000: 12,300 ment and
transactions Investment . Investment
and 121 million Management Management
sq ft)
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Capital . 1,300 trans- . One-time trans- . Investment
Markets actions action fees, but Management
$19 billion of repeat client
value (2000: business . Property
1,700 trans- Management
actions and
$20 billion . Tenant
of value) Representation
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Valuation & . 29,400 valua- . Regular repeat . Property
Consulting tions valuation fees Management
(2000: 29,000) tied to asset (Corporates)
value
. Capital Markets
. Consulting
fixed fee or . Tenant
hourly rates Representation
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JONES LANG LASALLE - PAGE - 21:
BROAD RANGE OF INTEGRATED SERVICES
INVESTMENT MANAGEMENT
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2001 Primary
Business Unit Statistics Revenue Type Business Synergies
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Direct . $17.8 billion . Contractual base . Capital Markets
Investments of assets under fees (% of assets)
management . Property
(2000: $18.0 . Acquisition fees Management
billion) (Investors)
. Performance fees
. Project &
. Long-term client Development
relationships Management
( >5 years )
. Agency Leasing
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Indirect . $4.4 billion . Contractual base . N/A
Investment of assets under fees (% of assets)
management
(2000: $4.5 . Performance fees
billion)
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JONES LANG LASALLE - PAGE - 22:
[ JONES LANG LASALLE - LOGO ]
APPENDIX II - September YTD Performance - Adjusted
JONES LANG LASALLE - PAGE - 23:
LOWER 2002 REVENUES CUSHIONED BY COST SAVINGS
$MM (except per share data)
Q3 YTD Actual
----------------------
2002 2001 % Change
(1) (2) (2) Prior Year
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Revenue $ 560 $ 618 (9.4%)
Operating Expenses 533 586 (9.0%)
ADJUSTED OPERATING INCOME 27 32 (15.6%)
Interest Expense 13 15 (13.3%)
Income Tax Expense 5 7 (28.6%)
Minority Interest 1 1 --
ADJUSTED NET INCOME $ 8 $ 9 (11.1%)
ADJUSTED EPS $ 0.25 $ 0.30 (16.7%)
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ADJUSTED EBITDA $ 54 $ 67 (19.4%)
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Notes: (1) Excludes cumulative effect of change in accounting
principle related to SFAS 142.
(2) Adjusted to exclude non-operating charges
JONES LANG LASALLE - PAGE - 24:
Some of the information contained herein is forward looking or time
sensitive. Jones Lang LaSalle undertakes no obligation to update any of
this information. Factors that could cause actual results to vary should
be reviewed in reports filed with the Securities and Exchange Commission.