EXHIBIT 99.1
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JONES LANG LASALLE - PAGE - 1:
JONES LANG LASALLE
February 2005
JONES LANG LASALLE - PAGE - 2:
FORWARD LOOKING STATEMENTS
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Statements in this presentation regarding, among other things, future
financial results and performance, achievements, plans, targets,
projections and objectives 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 and Jones Lang
LaSalle makes no representations or guarantees thereof. Factors that could
cause actual results to differ materially include those discussed under
"Business," "Management's Discussion and Analysis of Financial Condition
and Results of Operations," "Quantitative and Qualitative Disclosures about
Market Risk," and elsewhere in Jones Lang LaSalle's Annual Report on
Form 10-K for the year ended December 31, 2003, in Jones Lang LaSalle's
Proxy Statement dated April 20, 2004, in Jones Lang LaSalle's Quarterly
Reports on Form 10-Q for the quarters ended March 31, June 30 and
September 30, 2004 and in other reports filed with the Securities and
Exchange Commission. 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. In addition, nothing herein may be
construed or is intended as an offering of any security.
JONES LANG LASALLE - PAGE - 3:
OUR VISION
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To be the chosen real estate expert and strategic adviser
to the leading occupiers and investors around the world
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WE ARE: WE ARE NOT:
. A global firm operating across . Asset intensive
more than 100 markets
. A REIT
. Advisor and service provider
to real estate occupiers and
investors
. Global real estate investment/
fund manager
. Client-relationship oriented
. Strong cash-flow business model
JONES LANG LASALLE - PAGE - 4:
FINANCIAL HIGHLIGHTS
STRONG PROFIT GROWTH
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. 2004 net income $64.2 million vs. 2003 net income $36.1 million
. 2004 EPS Actual - $1.96 per share (including bond refinancing
charge of $0.26 per share)
. 2003 EPS Actual - $1.12 per share
. 2002 EPS Actual - $0.85 per share
STRONG CASH FLOW BUSINESS MODEL
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. EBITDA of $129 million in 2004; $99 million in 2003
. Reduced interest expense; $9 million in 2004 from $18 million
in 2003
. Reduced tax rate; 25% in 2004 from 42% in 2001
SOLID BALANCE SHEET
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. $119 million net debt repayment in 2004; $88 million in 2003
. Debt Ratings: S&P BBB- / Moody's Ba1
. Interest Coverage Ratio = 13.9 (EBITDA / Interest Expense);
Leverage Ratio = 0.2 (Net Debt / EBITDA) (1)
(1) See Appendix 3 for explanation of EBITDA and Net Debt
JONES LANG LASALLE - PAGE - 5:
OUR VALUE MODEL
Performing Consistently and Maximizing Growth
VALUE CREATION
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. Clients
. Employees
. Shareholders
VALUE DRIVERS
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. Integrated Global Services
. Research
. Account Management
. Operational Excellence
. Strong Brand
[Graphic indicating - Occupiers and Investors encircling and indicating - ]
REAL ESTATE REAL ESTATE
OCCUPIER SERVICES MONEY MANAGEMENT
- Outsourcing - Global Investment
- Tenant Representation Capability
- Facilities Management - Institutional/Retail
- Project & Development Capital
Services - Direct and Indirect
- Consulting Vehicles
- Private & Public
- Income, Value-Add &
Opportunistic Investments
REAL ESTATE CAPITAL MARKETS REAL ESTATE INVESTOR SERVICES
- Investment Banking - Leasing
- Corporate Finance - Property Management
- Acquisitions & Dispositions - Project &
- Financial Restructuring Development Services
- Debt & Equity Raising - Consulting
- Hotel Advisory - Valuations
- Property Auctions
JONES LANG LASALLE - PAGE - 6:
DIVERSIFIED REVENUE SOURCES
2004 GEOGRAPHIC SPREAD
[ Graphic / Pie Charts indicating ]
TOTAL 2004 REVENUE: $1.2 BILLION (1)
LaSalle Investment Management 13% (1)
IOS - Americas 31%
IOS - Europe 37%
IOS - Asia Pacific 19%
OPERATING INCOME MARGIN
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Long
Term
2004 Targets
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LaSalle Investment Management (1) 21.2% 20+ %
IOS - Americas 14.4% 12-13%
IOS - Europe 4.1% 10-12%
IOS - Asia Pacific 2.7% 8-10%
Note: IOS refers to our Investor and Occupier Services
(1) Equity earnings are an integral part of this business and are
therefore included in the Geographic Spread and Operating Income
Margin. Equity earnings are not included in the Total Revenue.
JONES LANG LASALLE - PAGE - 7:
REAL ESTATE MONEY MANAGEMENT
LaSalle Investment Management -
A Differentiator For Our Firm
GROWTH STRATEGY
. Capitalize on cross border capital flows and
increasing investment allocations to real estate
. Leverage brand differentiation
- Investment performance
- Research driven investment advice
- Integrated global execution of investment opportunities
. Leverage the Jones Lang LaSalle platform for quick market entry
. Leverage the Asia Pacific position
. Expand retail alliances
. Accelerate investment delivery and market response with
Firm capital
JONES LANG LASALLE - PAGE - 8:
REAL ESTATE MONEY MANAGEMENT
Funds in Asia Reflect Strong Research and
On-The-Ground Expertise
LASALLE ASIA RECOVERY FUND I -- Launched in 2000
Equity Raised: $242 million Assets Under Mgmt: $584 million
Total Buying Power: $600 million JLL Co-Investment: $12 million
Fund Objective: An opportunistic, diversified fund nearly fully
invested with expectations of exceeding its
initial targeted return
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JAPAN LOGISTIC FUND -- Launched in 2004
Equity Raised: $366 million
Total Buying Power: $1,464 million
JLL Co-Investment: $12 million
Fund Objective: LaSalle Investment Management's first country and
sector focused Asian vehicle; acquiring warehouse
investments in the key distribution centers of
Japan
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LASALLE ASIA OPPORTUNITY FUND II -- Currently Marketing
Target Buying Power: Over $2 billion
Fund Objective: Continuing with successful approach to LARF I
above, focusing on value-added activities with a
primary regional focus in North Asia (Japan,
Greater China and Korea)
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JONES LANG LASALLE - PAGE - 9:
REAL ESTATE INVESTOR SERVICES AND CAPITAL MARKETS
Established Market Growth Businesses with Strong Cash Generation
GROWTH STRATEGY
. Local leadership leveraging national and cross-border platforms
. Client relationship managers delivering multiple services
to repeat clients
BUSINESS-SPECIFIC STRATEGIES
. CAPITAL MARKETS
- Capitalize on cross border capital flows
- Expand leadership positions - Pan-European (#1) and
Hotels (#1)
- Differentiate with Corporate Finance expertise and
client base
. AGENCY LEASING
- Leverage leading market positions as economies recover
- Expand market coverage to leverage national and regional
platforms (e.g. New York, Central Europe and North Asia)
. VALUATIONS AND CONSULTING
- Strategic advice to capture early entry point for
opportunities
. PROPERTY MANAGEMENT
- Client selection based on our relationship and
profitability
JONES LANG LASALLE - PAGE - 10:
REAL ESTATE INVESTOR SERVICES AND CAPITAL MARKETS
Growing Markets Provide Opportunities Across Service Lines
CHINA
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2001 2004 2007 (projected)
Employees: 140 Employees: 220 Employees: 450-500
Revenue: $5.9 million Revenue: $11.5 million Revenue: $35-$40 million
RUSSIA
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2001 2004 2007 (projected)
Employees: 30 Employees: 74 Employees: 120
Revenue: $2.8 million Revenue: $9.9 million Revenue: $20.5 MILLION
Note: Employee counts include professional and support employees and
exclude property maintenance employees.
JONES LANG LASALLE - PAGE - 11:
REAL ESTATE OCCUPIER SERVICES
High Growth Potential Businesses with Annuity Revenues
GROWTH STRATEGY
. Capitalize on corporate outsourcing and cost reduction trends
. Differentiate with integrated global capability
. Service clients with dedicated account management to
maximize relationships
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GROWTH OCCURRING IN SERVICE LINES AND GEOGRAPHIES
AMERICAS FACILITIES MANAGEMENT
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2001 2004
Employees: 589 Employees: 731
Revenue: $33.6 million Revenue: $48.3 million
INDIA
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2001 2004
Employees: < 100 Employees: 195
Revenue: $1.9 million Revenue: $10.5 million
Note: Employee counts include professional and support employees and
exclude property maintenance employees.
JONES LANG LASALLE - PAGE - 12:
DIVERSIFIED REVENUE SOURCES
2004 Business Unit Spread
[ Graphic / Pie Charts indicating ]
REAL ESTATE OCCUPIER SERVICES
- Tenant Representation - 9%
- Project & Development Services - 10%
- Facilities Management - 7%
REAL ESTATE MONEY MANAGEMENT - 13% (1)
REAL ESTATE INVESTOR SERVICES
- Valuations & Consulting - 10%
- Property Management 15%
- Agency Leasing - 17%
REAL ESTATE CAPITAL MARKETS - 19%
TOTAL REVENUE: $1.2 BILLION (1)
(1) Equity earnings are an integral part of this business and are
therefore included in revenue for this business. Equity earnings
are not included in the Total Revenue.
JONES LANG LASALLE - PAGE - 13:
OUR CLIENT ROSTER IS IMPRESSIVE AND GROWING
A FEW EXAMPLES ...
BANK OF AMERICA DEUTSCHE BANK
MICROSOFT P&G
WHIRLPOOL MOTOROLA
CalPERS DELPHI
3M HSBC
TAAssociates TIAA CREF
GM THE OHIO STATE UNIVERSITY
Cisco Systems DEPARTMENT OF THE ARMY -
UNITED STATES OF AMERICA
Hermes Property Asset
Management Limited Merrill Lynch
Scottish Widows Deka Immobilien Investment
Skandia
JONES LANG LASALLE - PAGE - 14:
OUR CASH FLOW STRATEGY
. Primary cash uses:
- Co-investment that provides growth opportunities
for LaSalle Investment Management
- Technology capital expenditure that keeps us on
the leading edge for our clients
- Debt repayment
- Share repurchase
. Achieved capital structure objective of 25% Debt to
Total Book Capitalization
. Redeemed Euro Notes in June 2004
- 2004 Interest Expense savings of approximately $5 million
to $6 million ($0.14 per share)
- Interest Expense going forward projected to be $5 million
or less due to reduced debt and lower borrowing rate
. Positioned to have the ability to evaluate our use of cash in
2005 for purposes such as growth, stock repurchases and
dividends
$MM
[ bar chart indicating - ]
12/31/1999
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Total - $323
Interest Expense peaks at $27MM in 2000
12/31/2003
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Total - $211
Net Debt $148
12/31/2004
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Net Debt $29
JONES LANG LASALLE - PAGE - 15:
THE LEADING REAL ESTATE SERVICES BRAND
. Dominant Global Platform
- Over 100 markets on five continents
- Over 8,000 real estate professionals
. Leading Property Management Business
- Over 800 million s.f. under management
. One of the World's Largest and Most Diverse
Real Estate Investment Management Firms
- $24 billion under management
. Leading Professional Project Management Business
- Over 800 dedicated professionals
. Global Real Estate Research Capability
- 185 dedicated professionals
JONES LANG LASALLE - PAGE - 16:
APPENDIX 1 --
BUSINESS UNIT STATISTICS
JONES LANG LASALLE - PAGE - 17:
REAL ESTATE MONEY MANAGEMENT
LaSalle Investment Management - A Differentiator For Our Firm
Description 2004 Statistics (9/30/2004) Typical Fee Structure
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SEPARATE ACCOUNT
MANAGEMENT . $16.3 billion of assets . Advisory fees
(Firm's co-invest- under management . Incentive fees
ment = $12.8MM) . Transaction fees
. Equity earnings
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FUND MANAGEMENT . $3.7 billion of assets . Advisory fees
(Firm's co-invest- under management . Incentive fees
ment = $78.1MM) . Equity earnings
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PUBLIC EQUITY . $4.1 billion of assets . Advisory fees
(Firm's co-invest- under management
ment = $0.1MM)
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Assets
Under
Product Management %
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European private equity $10.8 44.8%
North American private equity $8.1 33.6%
Asia Pacific private equity $1.1 4.6%
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Total Private Equity $20.0 83.0%
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European public equity $0.5 2.1%
North American public equity $3.6 14.9%
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Total Public Equity $4.1 17.0%
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TOTAL $24.1 100%
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JONES LANG LASALLE - PAGE - 18:
REAL ESTATE INVESTOR SERVICES AND CAPITAL MARKETS
Established Market Growth Businesses with Strong Cash Generation
Business Unit 2003 Statistics Typical Fee Structure
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INVESTOR SERVICES
Property Management . 535 million s.f. . Annuity type manage-
(2003: 502 million ment fees paid
s.f.) monthly or quarterly
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Agency Leasing . 8,200 transactions . Income sourced from
73 million s.f. Property Management
(2003: 8,000 trans- and Investment
actions and 63 million Management
s.f.)
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Valuation & Consulting . 22,300 valuations . Regular repeat val-
(2003: 26,600) uation fees tied to
asset value
. Consulting fixed fee
or hourly rates
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CAPITAL MARKETS . 1,300 transactions . One-time trans-
$28 billion of value action fees, but
(2003: 1,250 trans- repeat client
actions and $18 billion business
of value)
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JONES LANG LASALLE - PAGE - 19:
REAL ESTATE OCCUPIER SERVICES
High Growth Potential businesses with Annuity Revenues
Business Unit 2003 Statistics Typical Fee Structure
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Tenant Representation . 2,600 transactions . Contractual income
48 million s.f. strategic alliances
(2003: 2,850 trans-
actions and 49 million
s.f.)
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Facilities Management . 300 million s.f. . Management fees
(2003: 223 million paid quarterly
s.f.)
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Project &
Development Services . Percentage of
construction costs
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JONES LANG LASALLE - PAGE - 20:
APPENDIX 2 --
SUPERIOR CASH FLOW
JONES LANG LASALLE - PAGE - 21:
SUPERIOR CASH FLOW
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$ Change
Actual Prior
$MM (except per share data) 2004 2003 Year
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EBITDA $129 $ 99 $ 30
Less: Interest Expense (9) (18) 9
Less: Income taxes (22) (8) (14)
Plus: Working capital &
non-cash expenses 63 37 26
NET CASH FROM OPERATIONS $161 $110 $ 51
PRIMARY USES OF CASH
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Co-Investment (3) (4) 1
Capital Expenses 28 19 9
Net Debt Repayment 119 88 31
Net Share Repurchase 19 6 13
Other (2) 1 (3)
TOTAL $161 $110 $ 51
JONES LANG LASALLE - PAGE - 22:
APPENDIX 3 --
GAAP AND NON-GAAP RESULTS AND RECONCILIATION
JONES LANG LASALLE - PAGE - 23:
CALCULATION OF EBITDA
AND FREE CASH FLOW PER SHARE
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Actual
$MM 2004 2003
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OPERATING INCOME $ 96 $ 62
Plus: Depreciation & Amortization 33 37
EBITDA $129 $ 99
Less: Interest Expense (9) (18)
Less: Income Taxes (22) (8)
Plus: Working capital & non-cash
expenses 63 37
NET CASH FROM OPERATIONS $161 110
Less: Capital Expenditures (28) (19)
Less: Working Capital (41) (10)
FREE CASH FLOW $ 92 $ 81
FREE CASH FLOW PER SHARE $2.80 $2.51
JONES LANG LASALLE - PAGE - 24:
EXPLANATION OF EBITDA, FREE CASH FLOW AND NET DEBT
. EBITDA represents earnings before interest expense,
income taxes, depreciation and amortization
. Free Cash Flow represents Net Cash from Operations
less Capital Expenditures
. Net Debt represents debt minus cash and cash equivalents
. Management believes that EBITDA and Free Cash Flow are
useful to investors as a measure of operating performance,
and liquidity
. Management believes that Net Debt is useful to investors
as a measure of financial position
. EBITDA, Free Cash Flow and Net Debt should not be considered
alternatives to (i) net income (loss) (determined in
accordance with GAAP), (ii) cash flows (determined in
accordance with GAAP), or (iii) liquidity