EXHIBIT 99.1
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JONES LANG LASALLE - PAGE - 1:
JONES LANG LASALLE
June 2005
JONES LANG LASALLE - PAGE - 2:
FORWARD LOOKING STATEMENTS
--------------------------
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, 2004, in Jones Lang LaSalle's
Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 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:
OUR VALUE MODEL
Performing Consistently and Maximizing Growth
VALUE CREATION
--------------
. Clients
. Employees
. Shareholders
VALUE DRIVERS
-------------
. 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 - 5:
OUR GROWTH DRIVERS - THE GLOBAL FIVE PRIORITIES
1 Local and Regional Service Operations
2 Global Corporate Solutions
3 Global Capital Markets
4 LaSalle Investment Management
5 Infrastructure
JONES LANG LASALLE - PAGE - 6:
OUR GROWTH DRIVERS - THE GLOBAL FIVE PRIORITIES
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1 LOCAL AND REGIONAL SERVICE OPERATIONS
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- Be a force in all markets
- Operate to world service standards
- Execute the global service lines
JONES LANG LASALLE - PAGE - 7:
UNRIVALLED COVERAGE OF GLOBAL REAL ESTATE
More than 100 Wholly-Owned Offices
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AMERICAS
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Atlanta Ft. Lauderdale New Orleans St. Louis
Austin Hartford New York Salt Lake City
Baltimore Houston Orange County San Diego
Buenos Aires Los Angeles Orlando San Francisco
Chicago McLean Philadelphia Sao Paulo
Cincinnati Mexico City Phoenix Seattle
Cleveland Miami Pittsburgh Tampa
Columbus Minneapolis Portland Toronto
Dallas Monterrey Rio de Janeiro Vancouver
Denver Montreal Sacramento Washington, DC
Detroit New Jersey Santiago
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ASIA PACIFIC
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Adelaide Chennai Melbourne Singapore
Auckland Guangzhou Mumbai Sydney
Bangalore Hong Kong New Delhi Taipei
Bangkok Jakarta Penang* Tokyo
Beijing Johor Bahru* Perth Wellington
Brisbane Kuala Lumpur* Seoul
Canberra Manila Shanghai
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EUROPE
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Amsterdam Eindhoven Luxembourg Prague
Antwerp Frankfurt Lyon Rotterdam
Barcelona Glasgow Madrid Seville
Berlin Gothenburg Malmo Stockholm
Birmingham Grenoble Manchester Tel Aviv
Brussels The Hague Milan Utrecht
Budapest Hamburg Moscow Valencia
Dublin Leeds Munich Warsaw
Dusseldorf Lisbon Norwich Wiesbaden
Edinburgh London Paris
* Strategic Alliance with Jones Lang Wooton Malaysia
JONES LANG LASALLE - PAGE - 8:
DIVERSIFIED REVENUE SOURCES - DRIVING MARGIN EXPANSION
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
-----------------------
Long
Term
2004 Targets
------ -------
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 - 9:
GROWING MARKETS PROVIDE OPPORTUNITIES
Examples of Demonstrated Growth with Further Potential
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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
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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 - 10:
OUR GROWTH DRIVERS - THE GLOBAL FIVE PRIORITIES
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2 GLOBAL CORPORATE SOLUTIONS
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- Global outsourcing trend
- Clients demanding consistent service
- Best practice
JONES LANG LASALLE - PAGE - 11:
CORPORATE SOLUTIONS IS CLIENT CENTERED
[ graphic indicating core ]
CLIENT
[ circled by ]
ACCOUNT MANAGEMENT
[ circled by ]
Facility Management
Project Management
Regional Tenant Representation
Strategic Consulting
Lease Administration
Corporate Finance
Local Tenant Representation
JONES LANG LASALLE - PAGE - 12:
CORPORATE REAL ESTATE MANAGED GLOBALLY
Informal Survey of How Corporates Managed Real Estate
[ Graphic / Pie Charts indicating ]
75 CRE EXECUTIVES
JUNE 2003
- Global - 55%
- Region - 33%
- Business Unit - 9%
- Country - 3%
50 CRE EXECUTIVES
MARCH 2004
- Global - 89%
- Region - 7%
- Business Unit - 2%
- Country - 2%
Source: surveys taken by clients and prospects at JLL-sponsored events
JONES LANG LASALLE - PAGE - 13:
OUR MULTI-REGION RFPs ARE INCREASING
[ Graphic / Bar Chart indicating ]
RFPs 2001 - 5
2002 - 7
2003 - 15
2004 - 20
YTD 2005 - 13
JONES LANG LASALLE - PAGE - 14:
GLOBAL CORPORATE SOLUTIONS
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
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GROWTH OCCURRING IN SERVICE LINES AND GEORGRAPHIES
AMERICAS FACILITIES MANAGEMENT
-------------------------------------------------------
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 - 15:
OUR GROWTH DRIVERS - THE GLOBAL FIVE PRIORITIES
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3 GLOBAL CAPITAL MARKETS
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- World leader in international transactions
- Increase regional capability
JONES LANG LASALLE - PAGE - 16:
2004 GLOBAL CAPITAL MARKETS PERFORMANCE
$34bn
AMERICAS - $3bn
EUROPE - $22bn
ASIA PACIFIC - $4bn
HOTELS - $5bn
JONES LANG LASALLE - PAGE - 17:
REAL ESTATE INVESTMENT TURNOVER
[ Graphic / Bar Chart indicating ]
WORLD'S TOP 10
Annual Average
Billions EUR
--------------
London - 10
New York - 8
Paris - 5.5
Tokyo - 5
Washington, DC - 4.7
Los Angeles - 4.5
Chicago - 3.7
Toronto - 2.5
Boston - 2
Hong Kong - 2
Based on data 2000-2003
Source: Jones Lang LaSalle, 2003
JONES LANG LASALLE - PAGE - 18:
CROSS-BORDER REAL ESTATE INVESTMENT
[ Graphic / Bar Chart indicating ]
EUROPE: Direct Real Estate
Investment '00 - '04
------------------------------
EUR billions Total
------------------------------
2000 64.0
2001 75.3
2002 87.1
2003 89.2
2004 95.6
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ASIA: Cross Border Purchases as % of Total Investment, 2003
------------------------------
Singapore 65.3%
Seoul 53.1%
Bangkok 49.3%
Shanghai 45.4%
New Zealand 42.6%
Hong Kong 18.3%
Tokyo 6.0%
Australia 4.9%
Beijing 4.4%
------------------------------
Total investment 2003 16bn
Cross-border investment activity is defined as any direct transaction that
involves a foreign buyer or seller.
Source: Jones Lang LaSalle, March 2005
JONES LANG LASALLE - PAGE - 19:
REAL ESTATE MARKET SIZE AND SHAPE
[ Graphic / Bar Chart indicating ]
Private Private
Owner- Direct Indirect
Occupied Invest- Invest- Public
Property ments ments Market
-------- -------- -------- --------
EUROPE 67% 20% 9% 4% 4.7 Trillion
USA 24% 52% 17% 7% 4.0 Trillion
ASIA PACIFIC 2-3 Trillion
JONES LANG LASALLE - PAGE - 20:
OFFICE MARKET CYCLES
Improving Occupier Markets
[ graphics indicating improving occupier markets ]
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ASIA PACIFIC
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Rents Rental Rental
Rents Bottoming Growth Growth
Falling Out Accelerating Slowing
------------- ------------- ------------- -------------
1 2 3 5 6 7 8 9
4 10 11 12
1 Seoul 5 Kuala Lumpur 9 Auckland
2 Beijing 6 Singapore 10 Jakarta
3 Sydney 7 Tokyo 11 Shanghai
4 Melbourne 8 Bangkok 12 Hong Kong
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EUROPE
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Rents Rental Rental
Rents Bottoming Growth Growth
Falling Out Accelerating Slowing
------------- ------------- ------------- -------------
1 2 3 4 6 5 7 11 12 13 14
8
9
10
1 Frankfurt 6 Paris 11 Madrid
2 Milan 7 Prague 12 London
3 Berlin 8 Budapest 13 Moscow
4 Amsterdam 9 Stockholm 14 Brussels
5 Warsaw 10 Dublin
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USA
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Supply Falling Stagnant Rising
Response Market Market Market
------------- ------------- ------------- -------------
15 1 2 9 13
3 10 14
4 11
5 12
6
7
8
1 Houston 6 Boston 11 Miami
2 Atlanta 7 Chicago 12 San Francisco
3 Philadelphia 8 Las Vegas 13 New York City
4 Seattle 9 Denver 14 Washington, DC
5 Dallas 10 Los Angeles 15 San Diego
JONES LANG LASALLE - PAGE - 21:
GLOBAL TRANSPARENCY IN REAL ESTATE
[ graphics indicating - ]
HIGHLY TRANSPARENT -
Country -
Australia United Kingdom
New Zealand Canada
United States Netherlands
TRANSPARENT
Country -
Hong Kong Finland Austria
Sweden Switzerland Norway
Singapore Ireland Spain
Germany Belgium Malaysia
France Denmark South Africa
SEMI-TRANSPARENT
Country -
Italy Taiwan Greece
Portugal Poland Estonia
Czech Republic Mexico South Korea
Hungary Israel Philippines
Japan Chile Thailand
LOW-TRANSPARENT
Country -
Brazil Argentina Colombia
Russia India Indonesia
P.R. China Costa Rica United Arab Emirates (UAE)
OPAQUE
Country -
Turkey Saudi Arabia
Vietnam Romania
Egypt Ukraine
JONES LANG LASALLE - PAGE - 22:
OUR GROWTH DRIVERS - THE GLOBAL FIVE PRIORITIES
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4 LASALLE INVESTMENT MANAGEMENT
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- Successful track record
- Maintain long-term value style
- Invest for global growth
JONES LANG LASALLE - PAGE - 23:
CAPITAL RAISING - FUNDS
Launch Funds That Match Attractive Investments with Investor Needs
JLL CO-INVESTMENT IN FUNDS = $60 M
AMERICAS
. Canada Income & Growth
. Canada Income & Growth II
. Income & Growth III
. Medical Office Fund
. Seligman
. Medical Office Fund II
. Income & Growth IV
. US Trust
TOTAL BUYING POWER = $10 B
EUROPE
. London Office
. Barclays
. LaSalle Euro Growth II
. LaSalle Euro Growth III
. Eurozone Open-end Fund
ASIA PACIFIC
. Nikko
. Japan Logistics
. Asia Recovery Fund
. Asia Fund II
. SG Hiscock
JONES LANG LASALLE - PAGE - 24:
CAPITAL RAISING - SEPARATE ACCOUNTS
Add Large Scale Separate Accounts That Value Our Global Platform
Total Buying Power = $10+ B
AMERICAS
. Separate Account
EUROPE
. Separate Account
. Separate Account
ASIA PACIFIC
. Separate Account
. Separate Account
JONES LANG LASALLE - PAGE - 25:
CAPITAL RAISING - RETAIL
Total Potential = $2.7 - 3.9 B
AMERICAS
US Trust
. $1.2 B
Smith Barney
. $200 M+
Seligman
. $250 M+
EUROPE
Barclay's
. $300-500 M
MeesPierson
. $200 M
ASIA PACIFIC
Nikko
. $500 M+
SG Hiscock
. $200 M+
JONES LANG LASALLE - PAGE - 26:
OUR GROWTH DRIVERS - THE GLOBAL FIVE PRIORITIES
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5 INFRASTRUCTURE
------------------------------------------------------------
- Superior systems and processes
- Setting the world standard for cost
efficient infrastructure
JONES LANG LASALLE - PAGE - 27:
GLOBAL INFRASTRUCTURE
. Best in Class management reporting for Finance and HR
. Global client invoicing
. Global business applications
. Global client accounts payable
. Standard, repeatable processes - SOX efficient
. Lower risks through system controls
. Elimination of duplicate system costs
. Improved speed and access to information in all parts
of the world
JONES LANG LASALLE - PAGE - 28:
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 - 29:
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
- $26 billion under management
. GLOBAL CAPITAL MARKETS LEADERSHIP
- Advised approximately $34 billion in 2004
. LEADING PROFESSIONAL PROJECT MANAGEMENT BUSINESS
- Over 800 dedicated professionals
. GLOBAL REAL ESTATE RESEARCH CAPABILITY
- 185 dedicated professionals
JONES LANG LASALLE - PAGE - 30:
APPENDIX 1 --
BUSINESS UNIT STATISTICS
JONES LANG LASALLE - PAGE - 31:
REAL ESTATE MONEY MANAGEMENT
LaSalle Investment Management - A Differentiator For Our Firm
Description 2004 Statistics (12/31/2004) Typical Fee Structure
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SEPARATE ACCOUNT
MANAGEMENT . $17.8 billion of assets . Advisory fees
(Firm's co-invest- under management . Incentive fees
ment = $13.0MM) . Transaction fees
. Equity earnings
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FUND MANAGEMENT . $4.1 billion of assets . Advisory fees
(Firm's co-invest- under management . Incentive fees
ment = $60.5MM) . Equity earnings
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PUBLIC EQUITY . $4.5 billion of assets . Advisory fees
(Firm's co-invest- under management
ment = $0.1MM)
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Assets
Under
Product Management %
---------------------------------------------------------------
European private equity $12.3 46.6%
North American private equity $8.3 31.4%
Asia Pacific private equity $1.3 4.9%
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Total Private Equity $21.9 82.9%
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European public equity $0.5 1.9%
North American public equity $4.0 15.2%
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Total Public Equity $4.5 17.1%
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TOTAL $26.4 100%
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JONES LANG LASALLE - PAGE - 32:
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 -- Launched in 2005
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 - 33:
REAL ESTATE MONEY MANAGEMENT
Revenue Mix Shifting to Annuity-Like Advisory Fees
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Actual
2000
$MM 2004 (1) % Change
----------------------------------------------------------------
Assets Under Management $24,100 $22,500 7%
Revenue (2):
Advisory Fees 101 59 71%
Transaction and
Incentive Fees/Equity Gains 49 45 9%
Total Revenue 150 104 44%
Operating Income (2) $ 32 $ 24 33%
(1) Excludes revenue and operating income of the divested
LaSalle Hotel Properties group
(2) Equity earnings are an integral part of this business and
are therefore included in revenue and operating income
JONES LANG LASALLE - PAGE - 34:
REAL ESTATE INVESTOR SERVICES AND CAPITAL MARKETS
Established Market Growth Businesses with Strong Cash Generation
Business Unit 2004 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 . 8,000 transactions . Income sourced from
72 million s.f. Property Management
(2003: 7,900 trans- and Investment
actions and 61 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 . 1,400 transactions . One-time trans-
$34 billion of value action fees, but
(2003: 1,300 trans- repeat client
actions and $21 billion business
of value)
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JONES LANG LASALLE - PAGE - 35:
REAL ESTATE OCCUPIER SERVICES
High Growth Potential Businesses with Annuity Revenues
Business Unit 2004 Statistics Typical Fee Structure
- --------------------------------------------------------------------------
Tenant Representation . 2,800 transactions . Contractual income
49 million s.f. strategic alliances
(2003: 2,950 trans-
actions and 51 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 - 36:
APPENDIX 2 --
SUPERIOR CASH FLOW
JONES LANG LASALLE - PAGE - 37:
SUPERIOR CASH FLOW - HIGH RETURN
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Actual
$MM (except per share data) 2004 2003
----------------------------------------------------------------
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
PRIMARY USES OF CASH
--------------------
Co-Investment (3) (4)
Capital Expenses 28 19
Net Debt Repayment 119 88
Net Share Repurchase 19 6
Other (2) 1
TOTAL $161 $110
FREE CASH FLOW PER SHARE
(excludes cap ex and working capital)
2004 $2.80
2003 $2.51
Note: see Appendix 3 for explanation of EBITDA and Free Cash Flow
per Share.
JONES LANG LASALLE - PAGE - 38:
APPENDIX 3 --
GAAP AND NON-GAAP RESULTS AND RECONCILIATION
JONES LANG LASALLE - PAGE - 39:
CALCULATION OF EBITDA
AND FREE CASH FLOW PER SHARE
----------------------------------------------------------------
Actual
$MM 2004 2003
----------------------------------------------------------------
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 - 40:
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