EXHIBIT 99.1
- ------------
JONES LANG LASALLE
Experience: A World of Difference ...
INVESTOR PRESENTATION
August 2006
JONES LANG LASALLE - PAGE - 2:
Experience: A World of Difference ...
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, 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 -- Global and Diversified Growth
----------------------------------------------------------------------
To be the chosen real estate expert and strategic adviser
to the leading occupiers and investors around the world
----------------------------------------------------------------------
WE ARE: WE ARE NOT:
. A global firm operating across . Asset intensive
50 countries and in over 430
cities . A REIT
. Advisor and service provider
to real estate occupiers and
investors
. Global real estate investment/
fund manager
. Client-relationship oriented
. Disciplined acquirer augmenting
organic growth
JONES LANG LASALLE - PAGE - 4:
YEAR-TO-DATE 2006 HIGHLIGHTS
A Strong Start to the Year ...
.. Net Income for the first half of 2006 of $70.8 million or $2.08 per
share
.. Revenue increased in first half by 50 percent over the prior year
with strong growth in all business segments.
.. LaSalle Investment Management earned an incentive fee of $109.5
million from a single client in the second quarter of 2006
.. Strategic investments in people for 2006 targeted to be $20 million;
infrastructure initiatives targeted to have additional $5-$6 million
impact on 2006 income statement
.. Closed Spaulding & Slye acquisition on January 3rd with revenue
growth contribution of seven percent in the first half
.. LaSalle Investment Management closed CenterPoint acquisition adding
$3.4 billion to Assets Under Management
.. Renewed revolving credit facility with increased capacity to $450
million and maturity of 2011; received solid investment-grade rating
of Baa2 from Moody's
.. Announced regular semi-annual dividend of $0.25 per share and paid on
June 15, 2006
JONES LANG LASALLE - PAGE - 5:
GLOBAL AND DIVERSIFIED GROWTH
Record Earnings in 2005
[ Graphic / Line Chart indicating ]
($ Millions)
Net
Revenue Income EPS
-------- ------ -----
2002 $ 860.0 $ 27.1 $0.85
2003 $ 941.9 $ 36.1 $1.12
2004 $1,167.0 $ 64.2 $1.96
2005 $1,390.6 $103.7 $3.12
JONES LANG LASALLE - PAGE - 6:
GROWING REVENUE AND MARGINS ACROSS GEOGRAPHIES
GROWING REVENUES ...
Total 2004 Revenue = Total 2005 Revenue =
$1.2 billion (1) $1.4 billion (1)
---------------------- -------------------------
[ Graphics / Pie Charts indicating ]
IOS - Americas 31% IOS - Americas 31%
IOS - Asia Pacific 19% IOS - Asia Pacific 20%
IOS - Europe 37% IOS - Europe 35%
LaSalle Investment LaSalle Investment
Management 13% (1) Management 14% (1)
.... AND GROWTH OPPORTUNITY IN MARGIN EXPANSION
Operating Income Margin
-----------------------
Long-Term
2004 2005 Targets
LaSalle Investment Management (1) 21.2% 24.8% 20+%
IOS - Americas 14.4% 11.5% 12-14%
IOS - Europe 4.1% 4.9% 10-12%
IOS - Asia Pacific 4.0% 7.8% 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:
OUR GROWTH DRIVERS
What Sets Us Apart ...
-------------------- -------------------- --------------------
Global Capital LaSalle Investment Outsourcing and
Markets Management Offshoring
-------------------- -------------------- --------------------
. We are uniquely . Globally managed . Multinationals
positioned to business with out- seek our globally
capitalize on the standing track integrated quality
continuing trend of record; performance advice and execu-
cross-border capital results from proven tion managing
flows into real research-based their global real
estate approach and estate needs
execution
-------------------- -------------------- --------------------
GLOBAL
DIVERSIFICATION ANNUITY COUNTER CYCLICAL
-------------------- -------------------- --------------------
JONES LANG LASALLE - PAGE - 8:
GLOBAL CAPITAL FLOWS SEEKING YIELD
Following Global Real Estate Fundamentals
[ Graphics / Pie Chart flow indicating ]
----------------
Asia-Pacific
Europe
North America
----------------
Rental growth slowing
Moscow
Hong Kong
Shanghai, Washington D.C.
Rental growth accelerating
Los Angeles, New York
Singapore, Toronto
Mumbai, Tokyo
Delhi, San Francisco
Mexico City, Sao Paulo, Stockholm, Sydney
Boston, London, Madrid, Seoul
Hamburg, Paris
Rents bottoming out
Chicago
Warsaw
Amsterdam
Berlin, Milan
Frankfurt
Brussels
Rents falling
Beijing
Source: Jones Lang LaSalle; LaSalle Investment Management
JONES LANG LASALLE - PAGE - 9:
CROSS BORDER CAPITAL FLOWS ARE INCREASING
Search for Higher Returns and
Global Diversification Driving Cross-Border Investment
TOTAL INVESTMENT CROSS-BORDER INVESTMENT
------------------------------- -------------------------------
Asia- North Asia- North
Total Pacific Europe America Total Pacific Europe America
-------- ------- ------ ------- -------- ------- ------ -------
US$ US$
2003 354 bn 8% 42% 50% 90 bn 6% 79% 15%
US$ US$
2004 393 bn 12% 41% 47% 114 bn 11% 68% 21%
(Up 11%) (Up 27%)
US$ US$
2005 475 bn 14% 40% 46% 164 bn 12% 67% 21%
(Up 21%) (Up 44%)
Source: JLL; Property Data (UK); KTI Finland,; Real Capital
Analytics (USA)
JONES LANG LASALLE - PAGE - 10:
2005 GLOBAL CAPITAL MARKETS PERFORMANCE
- ------------------------------------------
GLOBAL CAPITAL MARKETS
We are uniquely positioned to capitalize
on the continuing trend of cross-border
capital flows into real estate.
- ------------------------------------------
[ Graphics / Global Map indicating ]
$43.5 BILLION
-------------
(2004: $34.0 billion)
AMERICAS - $7.1 billion
(2004: $3.1 billion)
EUROPE - $23.4 billion
(2004: $22.2 billion)
ASIA PACIFIC - $4.5 billion
(2004: $3.4 billion)
HOTELS - $8.5 billion
(2004: $5.3 billion)
JONES LANG LASALLE - PAGE - 11:
LASALLE INVESTMENT MANAGEMENT
A Global Business and Differentiator for Our Firm
Assets
Typical Under
Q2 2006 Fee Manage-
Description Statistics Structure Product ment %
- ----------- --------------- --------- ------- ------- ------
SEPARATE European
ACCOUNT Private
MANAGEMENT . $23.0 billion Equity $13.1 35.6%
(Firm's co- of assets . Advisory
investment = under manage- fees North
$37.2MM) ment . Transaction American
(27% growth fees Private
over Q2 2005) . Incentive Equity $13.5 36.7%
fees
. Equity Asia
earnings Pacific
Private
- ---------------------------------------------- Equity $ 3.5 9.5%
--------------------------
FUND TOTAL
MANAGE- . $7.1 billion . Advisory PRIVATE
MENT of assets fees EQUITY $30.1 81.8%
(Firm's under manage- . Incentive --------------------------
co-invest- ment fees
ment = (34% growth . Equity TOTAL
$69.1MM) over Q2 2005) earnings PUBLIC
SECURITIES $6.7 18.2%
--------------------------
- ----------------------------------------------
TOTAL $36.8 100%
PUBLIC --------------------------
SECURITIES . $6.7 billion . Advisory
(Firm's co- of assets fees
investment = under manage-
$0.1 MM) ment
(56% growth
over Q2 2005)
- ----------------------------------------------
--------------------------------------------------
Assets Under Management = $36.8 billion
--------------------------------------------------
33% Growth over Q2 2005
--------------------------------------------------
JONES LANG LASALLE - PAGE - 12:
LASALLE INVESTMENT MANAGEMENT
Positioned to Deliver Unprecedented Growth
[ Line Chart Indicating ]
($ Millions)
Advisory
and Trans-
Incentive Equity action Operating
Fees Earnings Fees Income Total AUM
--------- -------- ---------- ---------- --------- ---------
2002 17.7 2.6 $ 88.7 $20.0 $109.0 $23.2B
2003 4.7 8.0 $100.6 $18.4 $113.3 $21.5B
2004 20.0 17 $113.4 $31.8 $150.4 $24.1B
2005 43.4 11.8 $147.5* $50.2 $202.7 $29.8B
(30% (35%
increase) increase)
* Base Income Margin of 14% in 2005 compared to a loss in 2000
Note: Base Income defined and reconciled to Operating Income in Appendix 3
JONES LAND LASALLE - PAGE - 13:
LASALLE INVESTMENT MANAGEMENT
Incentive Fee Potential in Funds and Separate Accounts
.. Funds average lives typically vary by investment style
. Core Fund - 7-10 year typical life
. Value-Add Fund - 5-7 year typical life
. Opportunistic Fund - 3-5 year typical life
.. Funds typically have targeted return hurdles above which incentive
fees can be earned; incentive fees begin during fund liquidation as
assets are sold and as investor hurdles are met
. Core Fund - target return of 6%-8%
. Value-Add Fund - target return of 12%-14%
. Opportunistic Fund - target return of greater than 16%
. Incentive fees generally include sharing of investment proceeds
above an agreed benchmark (at or below target return)
. Firm's share varies from 10% on Core Funds to 30% on
Opportunistic Funds
.. Separate Accounts (portfolios managed for a single client) calculated
at client agreed benchmark at predetermined measurement periods
JONES LAND LASALLE - PAGE - 14:
LASALLE INVESTMENT MANAGEMENT
Funds and Separate Accounts with Potential Incentive Fees
- ---------------------------------------------------------------------------
Number Buying
Investment of Power
Investment Type Style Funds Region ($MM)
- ---------------------------------------------------------------------------
Commingled Funds Core 2 Americas $ 2,300
Value-Add 12 Americas/ $ 7,900
Asia Pacific/
Europe
Opportunistic 4 Americas/ $ 7,800
Asia Pacific
--- -------
Total 18 $18,000
- ---------------------------------------------------------------------------
Number
Investment of AUM
Investment Type Style Clients Region ($MM)
- ---------------------------------------------------------------------------
Separate Accounts Core 13 Americas/ $ 6,200
Asia Pacific/
Europe
Value-Add 3 Americas/
Europe $ 7,200
Opportunistic 2 Americas/
Europe $ 200
--- -------
Total 18 $13,600
Note: Buying Power represents the current AUM of a fund plus potential
investments based on commitments to existing funds and leverage
JONES LAND LASALLE - PAGE - 15:
LASALLE INVESTMENT MANAGEMENT
Funds Driving AUM Growth, Advisory Fees and Potential Incentive Fees
- ---------------------------------------------------------------------------
Number Buying
Investment of Power
Vintage Year Style Funds Region ($MM)
- ---------------------------------------------------------------------------
Pre-2001 Value-Add 1 Americas $ 200
- ---------------------------------------------------------------------------
2001 Value-Add 1 Europe $ 1,300
- ---------------------------------------------------------------------------
2002 Value-Add 2 Americas $ 1,100
Opportunistic Asia Pacific
- ---------------------------------------------------------------------------
2003 Value-Add 1 Americas $ 500
- ---------------------------------------------------------------------------
2004 Core, 4 Americas (2) $ 3,100
Value-Add (2) Asia Pacific
Opportunistic Europe
- ---------------------------------------------------------------------------
2005 Core 6 Americas (2) $ 9,500
Value-Add (3) Asia Pacific
Opportunistic (2) Europe (3)
- ---------------------------------------------------------------------------
2006 Value-Add (3) 3 Americas $ 2,300
Europe (2)
- ---------------------------------------------------------------------------
Total 18 $18,000
- ---------------------------------------------------------------------------
Note: Vintage Year represents the year in which the fund made its first
capital call from investors.
JONES LANG LASALLE - PAGE - 16:
OUTSOURCING AND OFFSHORING -
GROWING TREND CONTINUES
Corporate Solutions Multi-Region RFPs
- ----------------------------------------
Outsourcing and Offshoring
- ----------------------------------------
.. Multinationals seek our globally
integrated quality advice and
execution managing their global
real estate needs
- ----------------------------------------
[ Line Chart Indicating ]
RFPs
2002 6
2003 9
2004 18
2005 35
2006 30 (14 Pending)
----------------------------------------
Win Rate Consistently Exceeds 50%
----------------------------------------
JONES LANG LASALLE - PAGE - 17:
OUR CLIENT ROSTER IS IMPRESSIVE AND GROWING
A FEW EXAMPLES ...
BANK OF AMERICA DEUTSCHE BANK
MICROSOFT P&G
WHIRLPOOL MOTOROLA
CalPERS HSBC
3M TIAA CREF
TAAssociates THE OHIO STATE UNIVERSITY
GM DEPARTMENT OF THE ARMY -
UNITED STATES OF AMERICA
Cisco Systems
Merrill Lynch
Hermes Property Asset
Management Limited Deka Immobilien Investment
Scottish Widows
Skandia
JONES LANG LASALLE - PAGE - 18:
THE LEADING REAL ESTATE SERVICES BRAND
. DOMINANT GLOBAL PLATFORM
- Over 100 offices worldwide
- Over 9,000 real estate professionals
. LEADING PROPERTY MANAGEMENT BUSINESS
- 966 million s.f. under management
. ONE OF THE WORLD'S LARGEST AND MOST DIVERSE
REAL ESTATE INVESTMENT MANAGEMENT FIRMS
- $36.8 billion under management
. GLOBAL CAPITAL MARKETS LEADERSHIP
- Advised $43.5 billion in 2005
. LEADING PROFESSIONAL PROJECT MANAGEMENT BUSINESS
- 1,000 dedicated professionals
. GLOBAL REAL ESTATE RESEARCH CAPABILITY
- 195 dedicated professionals
JONES LANG LASALLE - PAGE - 19:
APPENDIX 1 --
BUSINESS UNIT STATISTICS
JONES LAND LASALLE - PAGE - 20:
DIVERSIFIED REVENUE BY SERVICE
Business Unit Spread
[ Graphics / Pie Charts indicating ]
Total 2005 Revenue - $1.4 billion (1)
-------------------------------------
Real Estate Occupier Services - 26%
. Facilities Management - 7%
. Project & Development Services - 11%
. Tenant Representation - 8%
Real Estate Money Management - 15% (1)
Real Estate Investor Services 40%
. Valuations & Consulting - 11%
. Property Management - 14%
. Agency Leasing - 15%
Real Estate Capital Markets - 19%
(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 - 21:
APPENDIX 2 --
SUPERIOR CASH FLOW
JONES LANG LASALLE - PAGE - 22:
SUPERIOR CASH FLOW - HIGH RETURN
----------------------------------------------------------------
Actual
$MM (except per share data) 2005 2004 2003
----------------------------------------------------------------
EBITDA $178 $129 $ 99
Less: Interest Expense (4) (9) (18)
Less: Income Taxes (36) (22) (8)
Plus: Working capital &
non-cash expenses (17) 63 37
NET CASH FROM OPERATIONS $121 $161 $110
PRIMARY USES OF CASH
--------------------
Acquisition 5 3 1
Co-Investment 16 (3) (4)
Capital Expenses 40 28 19
Net Debt Repayment 13 114 88
Net Share Repurchase 38 19 6
Dividend 9 -- --
TOTAL $121 $161 $110
FREE CASH FLOW PER SHARE
(excludes CapEx and working capital)
2005 $3.95
2004 $2.80
2003 $2.51
JONES LANG LASALLE - PAGE - 23:
APPENDIX 3 --
GAAP AND NON-GAAP RESULTS AND RECONCILIATION
JONES LANG LASALLE - PAGE - 24:
CALCULATION OF EBITDA
AND FREE CASH FLOW PER SHARE
----------------------------------------------------------------
Actual
$MM 2005 2004 2003
----------------------------------------------------------------
OPERATING INCOME
(including Equity Earnings) $144 $ 96 $ 62
Plus: Depreciation & Amortization 34 33 37
EBITDA $178 $129 $ 99
Less: Interest Expense (4) (9) (18)
Less: Income Taxes (36) (22) (8)
Less: Working capital &
non-cash expenses (17) 63 37
NET CASH FROM OPERATIONS $121 $161 $110
Less: Capital Expenditures (40) (28) (19)
Less: Working Capital 50 (41) (10)
FREE CASH FLOW $131 $ 92 $ 81
FREE CASH FLOW PER SHARE $3.95 $2.80 $2.51
JONES LANG LASALLE - PAGE - 25:
CALCULATION OF LASALLE INVESTMENT MANAGEMENT BASE INCOME
Measure for Profitability of the Advisory
and Transaction Fees Generated
----------------------------------------------------------------
Actual
$MM 2005 2000
----------------------------------------------------------------
LASALLE INVESTMENT MGMT OPERATING INCOME $ 50 $ 24
(including Equity Earnings)
Less: Equity Earnings, Global Costs, 29 27
Incentive Fees (net of team shares)
and Long-Term Incentive Plans
BASE INCOME (LOSS) $ 21 ($ 3)
BASE REVENUE (Advisory Fees and $147 $ 70
Transaction and other services)
BASE INCOME MARGIN 14% ( 4%)
Note: Management believes that Base Income and Base Income Margin are
useful to investors as a measure of LaSalle Investment Management's
operating performance.
JONES LANG LASALLE - PAGE - 26:
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 and Working Capital
. 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