EXHIBIT 99.1
- ------------
JONES LANG LASALLE
Real value in a changing world
INVESTOR PRESENTATION
August 2009
JONES LANG LASALLE - PAGE - 2:
FORWARD LOOKING STATEMENTS
Statements in this presentation regarding, among other things, future
financial results and performance, achievements, plans and objectives and
dividend payments 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. Factors that
could cause actual results to differ materially include those discussed
under "Business", "Risk Factors", "Management's Discussion and Analysis of
Financial Condition and Results of Operations", "Quantitative and
Qualitative Disclosures about Market Risks", "Cautionary Note Regarding
Forward-Looking Statements" and elsewhere in Jones Lang LaSalle's Annual
Report on Form 10-K for the year ended December 31, 2008 and in the
Quarterly Report on Form 10-Q for the quarter ended June 30, 2009 and in
other reports filed with the Securities and Exchange Commission. There can
be no assurance that future dividends will be declared since the actual
declaration of future dividends, and the establishment of record and
payment dates, remains subject to final determination by the Company's
Board of Directors. 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.
JONES LANG LASALLE - PAGE - 3:
JONES LANG LASALLE
VALUE PROPOSITION
. A global firm with Corporate Outsourcing as a
GROWTH OPPORTUNITY in the current environment
. LaSalle Investment Management a VALUE DIFFERENTIATOR
as a premium global real estate investment management
business
. Demonstrated ability to adapt and deliver INNOVATIVE
PRODUCTS AND SERVICES: Energy and Sustainability,
Value Recovery Services, etc.
. Fortified balance sheet for DIFFERENTIATED FINANCIAL
STRENGTH from competitors
JONES LANG LASALLE - PAGE - 4:
STRENGTHEN CAPITAL STRUCTURE TO POSITION FOR OPPORTUNITY
TWO-PRONGED APPROACH
. Credit facilities amended for additional operating and
financial flexibility
- Maintained $865 million total unsecured borrowing
capacity(1) and June 2012 maturity
- Additional restructuring and non-cash charge exclusions
- Leverage Ratio increased to 3.75x through March 2011
- Amendments closed June 2009
. $228 million gross proceeds from follow-on common stock
issuance(2)
- Proceeds used to pay down outstanding debt on credit
facilities
- 6.5 million common shares issued
- Investment grade rated
- Moody's: Baa2 (Stable Outlook)
- S&P: BBB- (Stable Outlook)
(1) Total borrowing capacity was $860 million as of June 30, 2009
(2) Net proceeds of $218 million after underwriting discount and
commissions
JONES LANG LASALLE - PAGE - 5:
JONES LANG LASALLE INCORPORATED
LEADING REAL ESTATE SERVICES AND INVESTMENT MANAGEMENT FIRM
. Provides comprehensive integrated real estate services and
investment management expertise
. Approximately 36,200 employees, including 22,100 whose costs
are reimbursed by our clients
. 750 locations in 60 countries
. Global brand diversified by geography and service offering
[ graphic indicating ]
Diversified Revenue by Service Line
-----------------------------------
Total 2008 = $2.7 billion
-------------------------
Money Management 13%
Capital Markets 11%
Investor Services 37%
- Valuations & Consulting 14%
- Property Management 9%
- Agency Leasing 14%
Occupier Services 39%
- Tenant Representation 13%
- Project and Development
Services 19%
- Facility Mgmt. 7%
Revenue by Geography
--------------------
2008(1) 2007
---- ----
Americas 35% 29%
EMEA 32% 34%
Asia Pacific 20% 23%
LaSalle Investment Mgmt. 13% 14%
--- ---
Consolidated 100% 100%
=== ===
(1) Includes Staubach revenue commencing July 11, 2008
JONES LANG LASALLE - PAGE - 6:
GLOBAL STRATEGY
FOCUSED ON EMERGING FROM THE GLOBAL FINANCIAL CRISIS
IN A STRONGER COMPETITIVE POSITION
- ------------------------------------------------------------------------
G1 LOCAL AND REGIONAL . Activity levels anticipated to be down
SERVICE OPERATIONS globally
. Market share to offset transaction
EXECUTION declines; successful integration of
acquisitions; new products (retail);
cross-selling
- ------------------------------------------------------------------------
G2 GLOBAL CORPORATE . Significant outsourcing wins and
SOLUTIONS ongoing RFPs
. Benefit from consolidation activities;
COUNTER CYCLICAL portfolio rationalization
. Leverage energy and sustainability
offers
. New industries, e.g. Pharma
- ------------------------------------------------------------------------
G3 GLOBAL CAPITAL . Support investor stress with leveraged
MARKETS portfolios
. Value Recovery Services
GLOBAL DIVERSITY . Focused on banks and financials;
receiverships / loan sales
- ------------------------------------------------------------------------
G4 LASALLE INVESTMENT . Client relationships, expectations
MANAGEMENT and demands
. Manage banking relationships against
ANNUITY covenant and refinance risk
. Maximize $8-$10 billion buying power
. Flight to quality
- ------------------------------------------------------------------------
G5 WORLD STANDARD . CRM system to leverage marketing wins
BUSINESS OPERATIONS . Global website enhancing sales,
marketing and research
OPERATING LEVERAGE . PeopleSoft paced to capture quick
cost wins
- ------------------------------------------------------------------------
JONES LANG LASALLE - PAGE - 7:
LOCAL AND REGIONAL SERVICES
OCCUPIER POSITION STRENGTHENED IN SHIFTING MARKET
- - Rents falling
Rome, Seoul, Toronto
Amsterdam, Dallas, Denver, Edinburgh, Milan, Washington DC
Atlanta, Boston, Chicago, Frankfurt, Los Angeles, Madrid,
New York, Philadelphia, San Francisco
Beijing, Stockholm, Sao Paulo, Singapore
Berlin, Detroit, Dublin, Sydney
Brussels, Shanghai, Paris
London, Moscow
- - Rents bottoming out
Hong Kong, Tokyo
Mumbai
- - Rental growth accelerating
- - Rental growth slowing
Mexico City
Q2 2008
-------
- - Rents falling
Beijing
Brussels, London
Detroit
- - Rents bottoming out
Philadelphia
- - Rental growth accelerating
Dallas
Seoul
Berlin, Mexico City
San Francisco
- - Rental growth slowing
Edinburgh, Milan, New York
Boston, Frankfurt, Los Angeles, Mumbai, Sao Paulo
Amsterdam, Chicago, Singapore, Sydney, Toronto
Atlanta, Moscow, Rome, Stockholm, Shanghai
Paris, Tokyo
-------------
Dublin, Hong Kong, Madrid, Washington DC Asia-Pacific
EMEA
Source: Jones Lang LaSalle; LaSalle Investment Management Americas
As of Q2 2009 -------------
JONES LANG LASALLE - PAGE - 8:
LEASING REVENUE GROWTH WITH INCREASED MARKET SHARE
FY 2008 AND Q2 2009 LEASING REVENUE
[ Graphics indicating ]
($ in millions; "LC" = Local Currency)
FY 2008
-------
2008
Increase
2006-07 2007-08 (Decrease)
Increase Increase in Local
2006 2007 (Decrease) 2008 (Decrease) Currency
------ ------ ---------- --------- ---------- ----------
Americas $194.5 $229.3 18% $348.3(1) 52%
EMEA $162.8 $226.9 39% $246.7 9% 8%
Asia Pacific $ 87.3 $126.2 45% $132.7 5% 6%
Consolidated $444.6 $582.4 31% $727.8(1) 25% 25%
(1) Includes Staubach
Q2 2009
-------
2008-09
Increase
2008-09 (Decrease)
Increase in Local
2008 2009 (Decrease) Currency
------ ------ ---------- ----------
Americas $ 59.8 $122.7 105%
EMEA $ 64.1 $ 36.5 (43%) (32%)
Asia Pacific $ 37.0 $ 23.6 (36%) (30%)
Consolidated $160.9 $182.8 14% 19%
JONES LANG LASALLE - PAGE - 9:
THE STAUBACH COMPANY INTEGRATION
PREMIER U.S. BRAND IN TENANT REPRESENTATION SERVICES
.. STAUBACH WAS A MARKET-LEADING REAL ESTATE ADVISORY FIRM WITH A
PRESENCE IN OVER 20 U.S. MARKETS
- Established over 30 years ago by Roger Staubach
.. FULLY INTEGRATED INTO JLL WITH STAUBACH MANAGEMENT LEADING BROKERAGE
GROUP
- 2009 financial results reflect combined performance
.. VARIABLE COMPENSATION USING COMMISSION MODEL
- JLL Americas legacy brokers migrated to commission
.. DIVERSE CLIENT BASE
- Winning new business with stronger platform
.. MAJORITY OF REVENUE, C. 85%, FROM TENANT REPRESENTATION
- Tenant Representation demonstrated resiliency in the last
market downturn
--------------------------------------------------
Tenant Representation
Service Offerings
--------------------------------------------------
. Strategic and advisory consulting
. Transaction management
. Lease and contract negotiation
. Research
. Lease administration
. Portfolio strategy
. Business and economic incentives
--------------------------------------------------
JONES LANG LASALLE - PAGE - 10:
GLOBAL CORPORATE SOLUTIONS
A GLOBAL LEADER IN REAL ESTATE OUTSOURCING SERVICES
[ graphic indicating ]
CLIENT RELATIONSHIP MANAGEMENT
Transaction Management Corporate Finance / CMG
Lease Administration Project Management
Integrated Facility Management Strategic Consulting
Energy & Sustainability Services
STRONG CONTRIBUTION TO GROWTH AND PROFITABILITY:
.. Ongoing success with corporate relationships
- 32 new contractual relationships YTD 2009
- 22 expanded relationships with existing clients YTD 2009
- Total wins up 40% over prior year period
.. Leveraging the investment in our global platform
- Leverage U.S.-based outsourcing to drive global market share
gain
- Contributing to 11% YTD 2009 Management Services revenue growth
over 2008
- Key wins expand sector opportunities
- -------------------------------------------------------------------------
LONG STANDING 2008 2009
CLIENTS KEY WIN KEY WINS RFP PIPELINE
- -------------------------------------------------------------------------
ELI LILLI AMGEN Further sector
opportunities
GSK PFIZER ASTRA ZENECA with new and
existing
SCHERING-PLOUGH MERCK clients
- -------------------------------------------------------------------------
JONES LANG LASALLE - PAGE - 11:
GLOBAL CORPORATE SOLUTIONS
LEADING POSITION WITH UNIQUE EXPERTISE ACROSS SERVICES & GEOGRAPHIES
[ graphic / pie chart indicating ]
. EMEA 16%
. Asia Pacific 24%
. Americas 60%
Note: Pie chart represents geographical allocation of 2008 Occupier
Services Revenue (Facilities Mgmt., Proj. & Development Services
and Tenant Rep.)
.. Outsourcing historically U.S. sourced for U.S. based multinationals
.. Staubach client relationships create new outsourcing opportunities
.. Highest margin contribution from Americas given scale
.. Trend towards Non-U.S. based RFPs
- ------------------------------------------------------------------------
--------------------
32 NEW YTD 2009 WINS
--------------------
Americas
- --------
Amgen
Grupo Salinas
Merck
Microsoft
SunTrust
T-Mobile
.... and others
Global / Multi-regional
- -----------------------
AstraZeneca
Iron Mountain
France Telecom
Philips
Smith Group plc
.... and others
Asia Pacific
- ------------
Ericsson
Nokia
Rolls Royce
Suncorp
.... and others
JONES LANG LASALLE - PAGE - 12:
INTEGRATED SUSTAINABILITY SERVICES AND BEST PRACTICES
ENERGY CONSERVATION AND COST SAVINGS A GROWING PRIORITY
MAKING AN IMPACT
----------------
. Over 500 LEED Accredited Professionals
. Managed 73 LEED projects, totaling over 35 million square feet
- LEED consultant for 2 of first 3 properties to be
Platinum certified; Beacon Capital and McDonald's
Corporation
. Documented $95 million in energy savings for clients including:
------------------------------------------------------------
Xerox Sun Microsystems Coca-Cola
Bank of America Motorola
------------------------------------------------------------
. Reduced 438,000 tons of greenhouse gas emissions
- Equivalent to the emissions of nearly 50 million gallons
of gasoline consumption
. Provided 20,000 facilities with specialized energy services
. Leading development of global sustainability guidelines for
Global Reporting Initiative
- ------------------------------------------------------------------------
[ Empire State Building graphic indicating ]
5 PARTNER COMPANIES
60+ ENERGY-EFFICIENCY IDEAS VETTED
8 FINAL PROJECTS RECOMMENDED
8 MOS. ITERATIVE DESIGN PROCESS
$4.4M ANNUAL ENERGY SAVINGS
38% ENERGY REDUCTION
"I chose Ray Quartararo and Jones Lang LaSalle because of our
successful history together taking on and figuring out
difficult projects and the company's deep sustainability
expertise and track record."
-- Anthony E. Malkin
Building Owner
Empire State Building Company
JONES LANG LASALLE - PAGE - 13:
LOWER CAPITAL MARKETS REVENUE REFLECTS CHALLENGING MARKET
Q2 2009 Capital Markets and Hotels revenue
[ Graphics indicating ]
($ in millions; "LC" = Local Currency)
2008-09
Increase
2008-09 (Decrease)
Increase in Local
2008 2009 (Decrease) Currency
------ ------ ---------- ----------
Americas $ 16.5 $ 5.6 (66%)
EMEA $ 50.8 $ 22.7 (55%) (47%)
Asia Pacific $ 14.9 $ 9.6 (35%) (25%)
Consolidated $ 82.2 $ 38.0 (54%) (47%)
JONES LANG LASALLE - PAGE - 14:
CAPITAL MARKETS - VALUE RECOVERY SERVICES
ADVISING CLIENTS NAVIGATING A DIFFICULT ECONOMIC CLIMATE
VALUE RECOVERY SERVICES
-------------------------------------
Financial Institution
Owners/Investors
Government
Special Servicers
Hotel Owners
-------------------------------------
- ------------------------------ ------------------------------
Providing advice to a major Successfully restructured
bank for an extensive large property investment
property portfolio in the U.K. group in conjunction with a
and continental Europe major U.K. Bank
- ------------------------------ ------------------------------
- ------------------------------ ------------------------------
Won 17 Asia Pacific mandates, Advising financial institution
incl. an exclusive mandate in on portfolio of property assets
Singapore to refinance/priva- in Thailand
tize a prime property fund
- ------------------------------ ------------------------------
- ------------------------------ ------------------------------
Selling $250 million portfolio Providing receivership,
of U.S. asset backed B notes management and leasing services
for European financial for 20 assignments across
institution the U.S.
- ------------------------------ ------------------------------
- ------------------------------ ------------------------------
Closed on $57 million of Advising on strategy and
note sales for Morgan Stanley subsequent disposition of $1.3
of New York billion loan portfolio in the
U.S.
- ------------------------------ ------------------------------
JONES LANG LASALLE - PAGE - 15:
LASALLE INVESTMENT MANAGEMENT
PREMIER GLOBAL INVESTMENT MANAGER - SAFE HANDS IN A STRESSED SECTOR
------------------------------------------------------------------------
OVERVIEW
------------------------------------------------------------------------
. Over 25 years real estate investment experience in Europe and
North America, and investing in Asia Pacific for 10 years
. Over 300 institutional investors worldwide - investor base over
90% institutional
. Over $17 billion of equity raised over last three years across
the major markets
. Operating in major markets across North America, Europe and
Asia Pacific
. More than 700 people based in 24 offices in 16 countries around
the world
------------------------------------------------------------------------
REAL ESTATE AUM - TOP RANKINGS (1)
------------------------------------------------------------------------
[ Graphic / Line Chart indicating ]
-------------------------
2008 Global PERE Awards
Global Firm of the Year
-------------------------
($ in billions)
ING Real Estate $139.0
Morgan Stanley $ 81.1
RREEF $ 75.4
JP Morgan Asset Mgmt $ 51.0
Prudential Real Estate Investors $ 44.0
AEW Capital Mgmt $ 43.0
LaSalle Investment Mgmt $ 41.1
(1) Assets under management rankings as of 12/31/2008 based on
publicly available information, including investment
management websites and annual reports
------------------------------------------------------------------------
JONES LANG LASALLE - PAGE - 16:
LASALLE INVESTMENT MANAGEMENT
DELIVERING ANNUITY-BASED REVENUE
[ Graphic / Line Chart indicating ]
($ Millions)
Advisory
and
Incentive Equity Transaction Operating
Fees Earnings Fees Total Income AUM
--------- -------- ----------- ------ ---------- -------
2002 $ 17.7 $ 2.6 $ 88.7 $109.0 $ 20.0 $23.2 B
2003 $ 4.7 $ 8.0 $100.6 $113.3 $ 18.4 $21.5 B
2004 $ 20.0 $17.0 $113.4 $150.4 $ 31.8 $24.1 B
2005 $ 43.4 $11.8 $147.5 $202.7 $ 50.2 $29.8 B
2006 $170.5 $ 7.1 $206.7 $384.3* $124.4 $40.6 B
2007 $ 88.2 $ 9.7 $272.9 $370.8 $112.0 $49.7 B
2008 $ 59.0 $297.0 $351.8 $ 81.9 $46.2 B
* Includes $112.5M incentive fee from a single client
----------------------------------------------------------------------
Advisory Fee Compound Annual Growth Rate = 22%
----------------------------------------------------------------------
Note: AUM data reported on a one quarter lag
JONES LANG LASALLE - PAGE - 17:
LASALLE INVESTMENT MANAGEMENT
PROFITABLE ADVISORY FEES SUPPORTS BUSINESS THROUGH CHALLENGING MARKET
- ------------------------------------------------------------------------
Description Q2 2009 Statistics * Typical Fee Structure
- ------------------------------------------------------------------------
SEPARATE ACCOUNT . $17.0 billion of . Advisory fees
MANAGEMENT assets under . Transaction fees
(Firm's co-invest- management . Incentive fees
ment = $21.3MM) (33% decline from . Equity earnings
2008)
- ------------------------------------------------------------------------
FUND MANAGEMENT . $16.2 billion of . Advisory fees
(Firm's co-invest- assets under . Incentive fees
ment = $129.7MM) management . Equity earnings
(14% decline from
2008)
- ------------------------------------------------------------------------
PUBLIC SECURITIES . $3.1 billion of . Advisory fees
(Firm's co-invest- assets under
ment = $0.1MM) management
(68% decline from
2008)
- ------------------------------------------------------------------------
* AUM data reported on one quarter lag
- ------------------------------------------------------------------------
Q2 2009 Q2 2008
- ------------------------------------------------------------------------
ADVISORY FEES $59.4 million $72.6 million
- ------------------------------------------------------------------------
AUM $36.3 billion $54.0 billion
- ------------------------------------------------------------------------
ANNUALIZED ANNUITY FEES
as a % of AUM 0.66% 0.53%
- ------------------------------------------------------------------------
. Advisory fees NOI, contractual or equity-based; typically more
stable than Assets Under Management which are impacted at least
quarterly by market fluctuations
--------------------------------------------------
Assets Under Management = $36.3 billion
--------------------------------------------------
JONES LANG LASALLE - PAGE - 18:
LASALLE INVESTMENT MANAGEMENT
RESPONDING TO MARKET CHALLENGES WHILE POSITIONING FOR LEADERSHIP
. Q2 YTD 2009 Advisory revenue = $120 million
. Stay close to our clients - constant communication
and no surprises
. Reinforce asset management teams - bolstering performance
is job #1
. Execute targeted fund raising programs
. Respond aggressively to weakness in competitor performance
. Buying power available when market stabilizes
--------------------------------------------------
Estimated Buying Power of $8 - $10 Billion (1)
--------------------------------------------------
(1) Estimated buying power as of June 30, 2009 and includes leverage
JONES LANG LASALLE - PAGE - 19:
2009 YEAR TO DATE UPDATE
SEASONAL REVENUE IMPROVEMENT
($ in millions)
Q1 Q2
------ ------
Americas $199.6 $248.6 25% increase
EMEA $120.8 $142.9 18% increase
Asia Pacific $104.8 $119.3 14% increase
LIM $ 37.0 $ 46.2 25% increase
Consolidated $494.2 $576.1 17% increase
JONES LANG LASALLE - PAGE - 20:
2009 YEAR TO DATE UPDATE
SEASONAL ADJUSTED EBITDA* IMPROVEMENT
($ in millions)
Q1 Q2
------ ------
Americas $ 11.4 $ 31.2
EMEA ($ 16.2) $ 4.5
Asia Pacific ($ 0.7) $ 5.7
LIM $ 16.3 $ 7.8
Consolidated $ 10.9 $ 49.3
* Refer to Appendix for Reconciliation of GAAP Net Loss to EBITDA and
Adjusted EBITDA for three months ended June 30, 2009 and for details
relative to the calculations of Q2 Adjusted EBITDA. Q1 Adjusted
EBITDA was calculated on a similar basis from the results for the
three months ended March 31, 2009. Segment Adjusted EBITDA is
calculated by adding the segment's Depreciation and Amortization and
non-cash co-investment charges to its reported Operating (loss)
income, which excludes Restructuring charges. Consolidated Adjusted
EBITDA for Q1 and Q2 2009 also exclude $28.9M and $14.9M,
respectively, of non-cash co-investment charges.
JONES LANG LASALLE - PAGE - 21:
INCREASE LIQUIDITY THROUGH DECISIVE ACTION
COST AND CASH ACTIONS 2008 AND 2009
COST ACTIONS
- ------------
.. $125M annualized savings in Base Compensation and Benefits
- Staffing reductions across the Firm, salary reductions
and furloughs
- Cumulative severance-related restructuring charges of
approximately $60M with a 3 to 6 month payback
- Variable compensation actions add savings in addition to
those from base compensation and benefits
.. $50M projected savings in 2009 Variable Operating Expenses
- Discretionary spend reductions to save net $50 M on a
local currency basis after absorbing acquisitions
- Savings expected primarily in T&E, Professional
Fees, Marketing and Training
- Partially offset by new gross facilities management
contracts and occupancy costs
CASH ACTIONS
- ------------
.. $65M reduction in capital expenditures
- Full year planned cash spend reduced to less than $45M for 2009
.. Dividend reduction in Q2 2009
- $0.10 per share compared with $0.25 per share in Q4 2008
JONES LANG LASALLE - PAGE - 22:
AGGRESSIVE ACTIONS IMPROVE BALANCE SHEET POSITION
REDUCED 1st HALF CASH SPEND BEFORE HISTORICALLY STRONG 2nd HALF
2009 2008
------- ----------------
Jan-Jun Jan-Jun Jul-Dec
------- ------- -------
OPERATING ACTIVITIES
- -------------------- ] Seasonal operating
Adjusted EBITDA (1) $ 60 $ 77 $ 205 ] performance historically
Less: Restructuring (32) -- (30) ] stronger in second half
Less: Interest
Expense &
Income Taxes (14) (15) (44) ] Aggressive receivable
Less: Working ] collection and lower
Capital & Other (100) (235) 75 ] incentive compensation
----- ----- ----- payments reduced working
capital needs in H1 2009
NET CASH FROM/ vs. H1 2008
(USED IN) OPERATIONS (86) (173) 206
PRIMARY USES OF CASH
- --------------------
Capital Expenses (2) (21) (51) (53) ] Reduced H1 2009 cash
Acquisitions & ] spend in all categories
Deferred Payment ]
Obligations (10) (168) (181) ]
Co-Investment (19) (24) (18) ]
Dividends (4) (17) (9) ]
----- ----- -----
NET CASH OUTFLOWS (54) (260) (261)
Net Share Issuance
& Other Financing 211 12 11 ] Equity issuance &
----- ----- ----- ] Debt reduction
NET DEBT REPAY- ]
MENT/(BORROWING) $ 71 $(421) $ (44) ]
===== ===== =====
- ------------------------------------------------------------------------
KEY COVENANT RATIOS
as of June 30, 2009
- ------------------------------------------------------------------------
LEVERAGE CALCULATIONS: INTEREST COVERAGE CALCULATIONS:
- --------------------- ------------------------------
Bank-defined Bank-Defined EBITDA
Indebtedness $804 + Rents $436
Bank-defined EBITDA $334 Cash Interest + Rents $132
LEVERAGE RATIO 2.41x INTEREST COVERAGE RATIO 3.31x
Maximum 3.75x Minimum 2.00x
- ------------------------------------------------------------------------
(1) See Appendix for adjustments made to EBITDA
(2) 2009 YTD capital expenditures net of tenant improvement allowances
received were $16 million
JONES LANG LASALLE - PAGE - 23:
STRENGTHENED CAPITAL STRUCTURE TO POSITION FOR OPPORTUNITY
STRATEGIC RATIONALE
STRENGTH
- --------
.. Differentiated financial strength among private and public global
real estate service providers
- Demonstrates strong balance sheet to Corporate and LIM clients
seeking long-term partner
.. Positioned for absolute client focus in any economic scenario
.. LaSalle Investment Management; safe pair of hands vs. competitors
in stressed environment
OPPORTUNITY
- -----------
.. Capitalize on industry recovery
.. Flexibility to acquire small, premium teams that will strengthen
our competitive position
.. Positioned to grow LaSalle Investment Management
JONES LANG LASALLE - PAGE - 24:
WORLD STANDARD BUSINESS OPERATIONS
---------------------------------------------------------------------
Setting the Industry Standard for Real Estate Service Companies
---------------------------------------------------------------------
JONES LAND LaSALLE IS A LEADING REAL ESTATE SERVICES BRAND:
.. DOMINANT GLOBAL PLATFORM
- Approximately 180 offices in over 60 countries worldwide
- Research-driven global investment management business
- Client demands for global expertise satisfied by few providers
.. POSITIONED FOR SHORT AND LONG TERM SUCCESS
- Premier and expanding position in the corporate outsourcing
space
- Expand share in local markets
- Leading global investment management business
.. SOLID FINANCIAL STRENGTH AND POSITION
- Diversified revenues by region and by service line
- Solid balance sheet with investment-grade ratings
- Strong global platform positioned for opportunity &
market recovery
2008 GLOBAL 2008 FORBES
PERE AWARDS THE PLATINUM LIST
GLOBAL FIRM OF THE YEAR
ENERGY STAR AWARD 2007 2009 WORLD'S MOST
PARTNER OF THE YEAR ETHICAL COMPANIES
www.ETHISPHERE.COM
HEWITT BEST EMPLOYERS 2009 FORTUNE
IN MIDDLE EAST 2009 WORLD'S MOST ADMIRED COMPANIES
JONES LANG LASALLE - PAGE - 25:
APPENDIX
JONES LANG LASALLE - PAGE - 26:
CAPITAL AND BANK ACTIONS
SIMULTANEOUS ACTIONS TAKEN WITH LENDERS
EQUITY ISSUANCE
- ---------------
- ----------------------------------------------------------------------
Shares Sold 6,500,000
Per Share Total
--------- ------------
Public Offering Price $ 35.00 $227,500,000
Underwriting Discount $ 1.49 $ 9,668,750
--------- ------------
Proceeds to Company $ 33.51 $217,831,250
- ----------------------------------------------------------------------
DEBT AMENDMENTS
- ---------------
.. Amendments provide additional operating and financial flexibility;
closed June 2009
.. Allowable EBITDA add-backs
- $25M of additional restructuring charges
- $100M of non-cash co-investment charges, as well as full
exclusion of goodwill impairments
.. Maximum Leverage Ratio increased to 3.75x through March 2011:
Debt
---------------
Adjusted EBITDA
- 3.50x for the two quarters ending September 30, 2011
- 3.25x thereafter
.. Cash Interest Coverage Ratio amended to include depreciation
add-back:
EBITDA + Rents
---------------------
Cash Interest + Rents
STATUS OF FACILITIES
- --------------------
.. Maturity remains June 2012
.. No reduction of borrowing capacity and facilities remain unsecured
.. Post amendment pricing of 4.25%
JONES LANG LASALLE - PAGE - 27:
STAUBACH ACQUISITION - TRANSACTION OVERVIEW
.. JONES LANG LaSALLE AND THE STAUBACH COMPANY CLOSED THE TRANSACTION TO
MERGE OPERATIONS ON JULY 11, 2008
- Staubach to receive guaranteed payments of $613 million (1),
plus additional earn out opportunities of up to $114 million
based on performance milestones
- $223 million consideration at close
- $123 million paid in cash (2), $100 million paid
in Jones Lang LaSalle stock
- $390 million of deferred payments (present value $330
million)
- 1st payment = $78m (August 2010), 2nd payment =
$156m (August 2011), 3rd payment = $156m (August
2013) (3)
- Approximately $9 million of intangible asset amortization
remaining
- $1 million anticipated for the remainder of 2009
- Less than $5 million of remaining P&L integration expense
expected in 2009
(1) Total Guaranteed Purchase Price is $624 million before the deduction
of net closing date liabilities and $11 million to fund transaction
costs
(2) Cash payment at close reduced by the net closing date liabilities
(3) 1st and 2nd payments can be deferred an additional 12 months each
based on performance
JONES LANG LASALLE - PAGE - 28:
LOWER CAPITAL MARKETS REVENUE REFLECTS CHALLENGING MARKET
FY 2008 CAPITAL MARKETS AND HOTELS REVENUE
[ Graphics indicating ]
($ in millions; "LC" = Local Currency)
2008
Increase
2006-07 2007-08 (Decrease)
Increase Increase in Local
2006 2007 (Decrease) 2008 (Decrease) Currency
------ ------ ---------- ------ ---------- ----------
Americas $ 89.3 $105.2 18% $ 47.6 (55%)
EMEA $288.9 $347.3 20% $195.8 (44%) (43%)
Asia Pacific $ 64.5 $105.4(1) 63% $ 53.4 (49%) (48%)
Consolidated $442.7 $557.8(1) 26% $296.8 (47%) (46%)
(1) Excludes Asia Pacific Hotels advisory fee
JONES LANG LASALLE - PAGE - 29:
RECONCILIATION OF GAAP NET (LOSS) INCOME TO
EBITDA AND ADJUSTED EBITDA
($ in millions)
Three Months Six Months
Ended Ended
June 30, June 30,
2009 2008 2009 2008
------ ------ ------ ------
Net (loss) income $(14.4) $ 24.5 $(75.9) $ 27.4
Add (deduct):
Interest expense,
net of interest income 14.5 3.6 27.3 4.7
(Benefit) Provision for
income taxes (2.5) 9.0 (13.3) 10.1
Depreciation and amortization 21.4 18.3 45.9 34.7
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EBITDA $ 19.0 $ 55.3 $(16.0) $ 76.9
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Non-cash co-investment charges $ 14.9 $ - $ 43.8 $ -
Restructuring 15.4 - 32.4 -
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ADJUSTED EBITDA $ 49.3 $ 55.3 $ 60.2 $ 76.9
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