EXHIBIT 99.1
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JONES LANG LASALLE - PAGE 1:
JONES LANG LASALLE
August 2003
[ Jones Lang LaSalle Logo ]
JONES LANG LASALLE - PAGE - 2:
AGENDA
COMPANY OVERVIEW
FINANCIAL PERFORMANCE
APPENDIX I - BROAD RANGE OF INTEGRATED SERVICES
APPENDIX II - GAAP and Non-GAAP Results and Reconciliation
JONES LANG LASALLE - PAGE - 3:
OVERVIEW OF JONES LANG LASALLE
WE ARE: WE ARE NOT:
. A global company with operations . Asset intensive
in 100 markets
. Service provider to real estate . A REIT or a direct
owners and occupiers owner of real estate
. Investment/fund manager for
institutions investing in real estate
. Client-relationship oriented
. Strong cash-flow business model
JONES LANG LASALLE - PAGE - 4:
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 - 5:
OUR VISION
To be the chosen real estate
expert and strategic advisor to
the leading owners, occupiers
and investors around the world
JONES LANG LASALLE - PAGE - 6:
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 - 7:
DIVERSIFIED REVENUE SOURCES
[ Graphic / Pie Charts indicating ]
2002
GEOGRAPHIC SPREAD
-----------------
Europe -- 43%
Americas -- 41%
Asia Pacific -- 16%
JONES LANG LASALLE - PAGE - 8:
DIVERSIFIED REVENUE SOURCES
[ Graphic / Pie Charts indicating ]
2002
BUSINESS UNIT SPREAD
--------------------
IMPLEMENTATION SERVICES
Valuations & Consulting -- 10%
Capital Markets -- 16%
Agency Leasing -- 16%
Tenant Representation -- 9%
MANAGEMENT AND ADVISORY SERVICES
Property Management (Investors) -- 20%
Property Management (Corporates) -- 6%
Project and Development Management -- 10%
Investment Management -- 13%
ANNUITY-LIKE REVENUE APPROACHING 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:
OUR CLIENT ROSTER IS IMPRESSIVE AND GROWING
A FEW EXAMPLES ... [ listing Companies and their logos ]
BANK OF AMERICA DEUTSCHE BANK
MICROSOFT P&G
MOTOROLA 3M
JONES LANG LASALLE CalPERS
MERRILL LYNCH DELPHI
TAAssociates TIAA CREF
HSBC DEPARTMENT OF THE ARMY -
UNITED STATES OF AMERICA
JPMorgan FLEMING GM
GOLDMAN SACHS CISCO SYSTEMS
THE OHIO STATE UNIVERSITY
JONES LANG LASALLE - PAGE - 11:
WHY CLIENTS CHOOSE JONES LANG LASALLE
. GLOBAL REACH WITH CONSISTENT CULTURE AND SERVICE
- Our single management/ownership structure ensures
consistent, superior service in local markets and
around the world
. GLOBAL BEST PRACTICES AND INFRASTRUCTURE
- We have experts in virtually every real estate
discipline. We assemble teams with deep subject matter
expertise to find world-class solutions for our clients
. OUR INVESTMENT IN TECHNOLOGY AND RESEARCH
- Our only business is real estate. We have made
substantial investments in real estate technology
and research, and leverage them for our clients
JONES LANG LASALLE - PAGE - 12:
LASALLE INVESTMENT MANAGEMENT -
A DIFFERENTIATOR FOR OUR FIRM
. Leading global real estate investment manager for
institutional investors, public and private investors and
corporations
. Long-standing client relationships and a growing investor
list
. Multiple investment offerings including separate
accounts, private real estate funds and fund of funds
. Increasingly global focus with approximately half of 2002
revenue achieved outside North America
. Leveraging Jones Lang LaSalle's presence, knowledge and
relationships globally
JONES LANG LASALLE - PAGE - 13:
LASALLE INVESTMENT MANAGEMENT -
GLOBAL REACH AND OUTSTANDING PERFORMANCE
Assets Under
Product Management %
------- ------------ ------
European private equity $ 9.8 47.8%
U.S. private equity $ 6.8 33.2%
U.S. public equity $ 2.9 14.0%
European public equity $ 0.6 2.9%
Asia-Pacific private equity $ 0.4 1.9%
Canadian private equity $ 0.1 0.3%
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Total $20.5 100.0%
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[ line chart indicating the following ]
EUROPEAN PRIVATE EQUITY as of 12/31/02
Investment
LaSalle Property
Investment Databank
Management (IPD)
---------- ----------
One-year 10.3% 9.6%
Three-year 9.6% 8.9%
Five-year 11.5% 10.6%
U.S. PRIVATE EQUITY as of 3/31/03
National
Council of
Real Estate
LaSalle Investment
Investment Fiduciaries
Management (NCREIF)
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One-year 8.2% 7.1%
Three-Year 10.4% 8.5%
Five-year 11.2% 10.2%
Note: LaSalle Investment Management performance reflects unleveraged
returns.
JONES LANG LASALLE - PAGE - 14:
THE LEADING REAL ESTATE SERVICES BRAND
. #1 Global Platform
- 100 markets on five continents
- over 7,000 real estate professionals
- Technology leader
. #1 Property Manager in the World
- 735 million s.f. under management
. One of the World's Largest and Most Diverse
Real Estate Investment
- $20.5 billion under management
. Leading Professional Project Management Business
- 700 dedicated professionals
. Leading Real Estate Research Capability
- 170 dedicated professionals
JONES LANG LASALLE - PAGE - 15:
[ JONES LANG LASALLE - LOGO ]
FINANCIAL PERFORMANCE
JONES LANG LASALLE - PAGE - 16:
[ Graphic indicating - ]
CLIENT SERVICE MODEL - FOCUS ON MAXIMIZING GROWTH AND CASH
Strategic Solutions - through
Research Global Capabilities
Technology Innovation
OWNERS & OCCUPIERS --
CORPORATE SOLUTIONS INVESTOR SERVICES
[ highlighted to indicate - [ highlighted to indicate -
GROWTH +, Annuity revenues ] MARKET GROWTH, Cash generators ]
- - Space Acquisition - Buying & Selling
- - Space Disposition - Leasing
- - Facilities Management - Property Management
- - Project & Development - Project & Development
Services Services
- - Consulting - Consulting
INVESTOR --
CAPITAL MARKETS INVESTMENT MANAGEMENT
[ highlighted to indicate - [ highlighted to indicate -
MARKET GROWTH, Cash generators ] GROWTH +, Annuity revenues ]
- - 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 - 17:
SUPERIOR CASH FLOW
$MM (except per share data)
Actual
---------------------- % Change
2002 (1) 2001 (1) Prior Year
-------- -------- ----------
Adjusted EBITDA $ 106 $ 137 (23%)
Interest 17 20 (15%)
Tax 18 29 (38%)
Free Cash Flow 71 88 (19%)
USES
Debt Pay Down $ 34 $ 19 79%
Stock Repurchase 5 7 (29%)
Co-Investment 9 (9) --
Capital Expenses 20 43 (53%)
Working Capital 3 28 (89%)
(1) Adjusted to exclude non-recurring and restructuring charges.
See Appendix II for explanation of EBITDA and Free Cash Flow.
JONES LANG LASALLE - PAGE - 18:
CAPITAL STRUCTURE - FINANCIAL IMPACT
$MM
[ bar chart indicating - ]
12/31/1999
- ----------
Total - $323
Credit facilities and short term borrowings* - $323
12/31/2002
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Total - $215
Credit facilities and short term borrowings* - $42 (LIBOR + 2.25%)
Euro Notes - $173 (9% - Callable June 2004)
* - Interest Expense peaks at $27MM in 2000
CALLING EURO NOTES IN 2004 USING CREDIT FACILITIES ALLOWS SIGNIFICANT
INTEREST EXPENSE SAVINGS:
. Significantly lower borrowing costs
. Further debt reduction
JONES LANG LASALLE - PAGE - 19:
DRIVING IMPROVED PROFITABILITY
. 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
. CAPITAL STRUCTURE IMPACT
- Euro Note call
- Reduced tax rate
- Continued debt repayment
JONES LANG LASALLE - PAGE - 20:
PRUDENT APPROACH TO 2003 OUTLOOK
. Q2 2003 GAAP loss of $0.05 in line with expectations (includes
$0.11 per share impairment charge for property management
system in Australia)
- EPS was $0.06 per share for the period excluding this
impairment charge
- Strong performance in the Americas; year-on-year revenue
growth in first half of 2003
- Continued decline in Europe
. For full year 2003, our goal remains to improve on 2002 results
- Continue to focus in 2003 on targeted investment in
growth areas, cost containment and debt reduction
- Cautious given seasonality of business coupled with
uncertain economic environment
JONES LANG LASALLE - PAGE - 21:
[ JONES LANG LASALLE - LOGO ]
APPENDIX I - BROAD RANGE OF INTEGRATED SERVICES
JONES LANG LASALLE - PAGE - 22:
BROAD RANGE OF INTEGRATED SERVICES
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2002 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 . 205 million . Annuity type . Project &
Management s.f. management fees Development
(Corporates) (2001 Combined paid quarterly Management
Property Man-
agement = 730 . Tenant
million s.f.) Representation
- -------------------------------------------------------------------------
Project & . Strategic . Property
Development Alliances Management
Management (Investors)
. Percentage of
construction . Property
costs Management
(Corporates)
. Tenant
Representation
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JONES LANG LASALLE - PAGE - 23:
BROAD RANGE OF INTEGRATED SERVICES
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2002 Primary
Business Unit Statistics Revenue Type Business Synergies
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Tenant . 3,300 trans- . Recurring . Project &
Representation actions income from Development
40 million strategic Management
s.f. alliances
(2001: 3,300
transactions . Property
and 33 million Management
s.f.) (Corporates)
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Agency . 7,900 trans- . Income sourced . Property
Leasing actions from Property Management
76 million s.f. Management and (Investors)
(2001: 9,100 Investment
transactions Management . Investment
and 82 million Management
s.f.)
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Capital . 1,500 trans- . One-time trans- . Investment
Markets actions action fees, but Management
$18 billion of repeat client
value (2001: business . Property
1,300 trans- Management
actions and
$19 billion . Tenant
of value) Representation
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Valuation & . 25,200 valua- . Regular repeat . Property
Consulting tions valuation fees Management
(2001: 29,400) tied to asset (Corporates)
value
. Capital Markets
. Consulting
fixed fee or . Tenant
hourly rates Representation
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JONES LANG LASALLE - PAGE - 24:
BROAD RANGE OF INTEGRATED SERVICES
INVESTMENT MANAGEMENT
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2002 Primary
Business Unit Statistics Revenue Type Business Synergies
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Direct . $19.5 billion . Contractual base . Capital Markets
Investments of assets under fees (% of assets)
management . Property
(2001: $17.8 . Acquisition fees Management
billion) (Investors)
. Performance fees
. Project &
. Long-term client Development
relationships Management
( >5 years )
. Agency Leasing
- -------------------------------------------------------------------------
Indirect . $3.7 billion . Contractual base . N/A
Investment of assets under fees (% of assets)
management
(2001: $4.4 . Performance fees
billion)
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JONES LANG LASALLE - PAGE - 25:
[ JONES LANG LASALLE - LOGO ]
APPENDIX II - GAAP and Non-GAAP Results and Reconciliation
JONES LANG LASALLE - PAGE - 26:
2002 GAAP EARNINGS REFLECT ORGANIZATION DOWNSIZING
$MM (except per share data)
Actual
-------------------- % Change
2002 2001 Prior Year
------ ------ ----------
Revenue $ 840 $ 905 (7%)
Operating Expenses 771 815 (5%)
Non-Recurring &
Restructuring Charges 14 77 (82%)
OPERATING INCOME 55 13 --
Interest Expense 17 20 (15%)
Income Taxes 11 8 38%
NET INCOME $ 27 $ (15) --
EPS $ 0.85 $(0.51) --
------ ------ ------
EBITDA (1) $ 91 $ 60 52%
====== ====== ======
Notes:
(1) See subsequent slide in this Appendix II for explanation of EBITDA.
JONES LANG LASALLE - PAGE - 27:
2002 ADJUSTED EARNINGS MEET REVISED EARNINGS GUIDANCE
$MM (except per share data)
Actual
---------------------- % Change
2002 (1) 2001 (1) Prior Year
-------- -------- ----------
Revenue $ 840 $ 905 (7%)
Operating Expenses 771 815 (5%)
ADJUSTED OPERATING INCOME 69 90 (23%)
Interest Expense 17 20 (15%)
Income Taxes 18 29 (38%)
Minority Interest -- 1 --
ADJUSTED NET INCOME $ 34 $ 40 (15%)
ADJUSTED EPS $ 1.08 $ 1.31 (18%)
------ ------ ------
Adjusted EBITDA $ 106 $ 137 (23%)
====== ====== ======
Notes:
(1) Adjusted to exclude non-recurring & restructuring charges. See
subsequent slide in this Appendix II for explanation of EBITDA and Free
Cash Flow.
JONES LANG LASALLE - PAGE - 28:
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME
$MM
Actual
--------------------
2002 2001
------ ------
GAAP NET INCOME $ 27 $ (15)
------ ------
NON-RECURRING & RESTRUCTURING CHARGES:
Impairment of E-commerce $ 0 $ 18
Land Investment & Development Impairment 3 3
2001 Global Restructuring (1) 56
2002 Global Restructuring 13 --
------ ------
TOTAL NON-RECURRING & RESTRUCTURING CHARGES 15 77
Less: Net Benefit for Income Taxes 7 22
Less: Cumulative Effect of Change in
Accounting Principle 1 --
------ ------
NET ADJUSTMENT TO GAAP NET INCOME $ 7 $ 55
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JONES LANG LASALLE - PAGE - 29:
CALCULATION OF EBITDA AND ADJUSTED EBITDA
$MM (except per share data)
Actual
--------------------
2002 2001
------ ------
OPERATING INCOME $ 55 $ 13
Depreciation & Amortization 37 47
Minority Interest (1) --
------ ------
EBITDA $ 91 $ 60
Non-recurring and restructuring charges 15 77
------ ------
ADJUSTED EBITDA $ 106 $ 137
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JONES LANG LASALLE - PAGE - 30:
EXPLANATION OF EBITDA AND FREE CASH FLOW
. EBITDA represents earnings before interest expense, income
taxes, depreciation and amortization and excludes Minority
Interests in EBITDA
. Free Cash flow represents Adjusted EBITDA less interest
expense and income taxes
. Management believes that EBITDA and Free Cash Flow are useful
to investors as a measure of operating performance, cash
generation and ability to service debt
. EBITDA and Free Cash Flow should not be considered an
alternative to (i) net income (loss) (determined in accordance
with GAAP), (ii) cash flows (determined in accordance with
GAAP), or (iii) liquidity
JONES LANG LASALLE - PAGE - 31:
[ JONES LANG LASALLE - LOGO ]
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.