Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Investor Presentation (August 2009)
29 slides from Jones Lang Lasalle's investor presentation, Aug 27, 2009
Slide 1: Investor Presentation
Investor Presentation August 2009
Slide 2: Forward looking statements
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
Slide 3: Value proposition
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 innovat
Slide 4: Strengthen Capital Structure to Position for Opportunity
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 exclusion
Slide 5: Jones Lang LaSalle Incorporated
Jones Lang LaSalle Incorporated Leading real estate services and investment management firm • Provides comprehensive integrated real estate services and investment management expertise Diversified Revenue by Service Line • Approximately 36,200 employees, including Total 2008 = $2.7 billion 22,100 wh
Slide 6: Global Strategy
Global Strategy Focused on emerging from the global financial crisis in a stronger competitive position Local and Regional • Activity levels anticipated to be down globally G1 Service Operations • Market share to offset transaction declines; successful Execution integration of acquisitions; new prod
Slide 7: Local and Regional Services
Local and Regional Services Occupier position strengthened in shifting market Rome, Seoul, Toronto Amsterdam, Dallas, Denver, Edinburgh, Milan, Washington DC Atlanta, Boston, Chicago, Frankfurt, Los Angeles, Madrid, New York, Philadelphia, San Francisco Mexico City Beijing, Stockholm, Sao Paulo, Sin
Slide 8: Leasing Revenue Growth with Increased Market Share
Leasing Revenue Growth with Increased Market Share FY 2008 and Q2 2009 Leasing revenue ($ in millions; “LC”=Local Currency) FY 2008 25% in LC 8% in LC 6% in LC 25% 52% 31% (1) $727.8 39% 9% 18% $348.3 (1) $582.4 45% 5% $246.7 $444.6 $229.3 $226.9 $194.5 $162.8 $126.2 $132.7 $87.3 2006 2007 2008 2006
Slide 9: The Staubach Company Integration
The Staubach Company Integration Premier U.S. brand in Tenant Representation services • Staubach was a market-leading real estate advisory firm with a presence in over 20 U.S. markets - Established over 30 years ago by Roger Staubach • Fully integrated into JLL with Staubach management leading broke
Slide 10: Global Corporate Solutions
Global Corporate Solutions A global leader in real estate outsourcing services Strategic Consulting Transaction Management Strong contribution to growth and profitability: Project Lease Client Management Administration • Ongoing success with corporate relationships Relationship Management - 32 new c
Slide 11: Global Corporate Solutions
Global Corporate Solutions Leading position with unique expertise across services & geographies EMEA 16% • Outsourcing historically U.S. sourced for U.S. based multinationals Americas Asia • Staubach client relationships create new outsourcing opportunities Pacific 60% 24% • Highest margin contribut
Slide 12: Integrated Sustainability Services and Best Practices
Integrated Sustainability Services and Best Practices Energy conservation and cost savings a growing priority Making an impact • Over 500 LEED Accredited Professionals “I chose Ray Quartararo and • Managed 73 LEED projects, totaling over 35 million square feet 5 Jones Lang LaSalle because of our suc
Slide 13: Lower Capital Markets Revenue Reflects Challenging Market
Lower Capital Markets Revenue Reflects Challenging Market Q2 2009 Capital Markets and Hotels revenue ($ in millions; “LC”=Local Currency) 47% in LC 25% in LC $50.8 (55%) $16.5 (66%) $22.7 (35%) $14.9 $5.6 $9.6 2008 2009 2008 2009 2008 2009 Americas EMEA Asia Pacific 47% in LC $82.2 (54%) $38.0 2008
Slide 14: Capital Markets - Value Recovery Services
Capital Markets - Value Recovery Services Advising clients navigating a difficult economic climate Providing advice to a major Successfully restructured bank for an extensive large property investment property portfolio in the U.K. group in conjunction with a and continental Europe major U.K. bank W
Slide 15: LaSalle Investment Management
LaSalle Investment Management Premier global investment manager – safe hands in a stressed sector OVERVIEW REAL ESTATE AUM – TOP RANKINGS (1) ($ in billions) • Over 25 years real estate investment $140.0 $139.0 experience in Europe and North America, and investing in Asia Pacific for 10 years $120.0
Slide 16: LaSalle Investment Management
LaSalle Investment Management Delivering annuity-based revenue ($ Millions) $400 $384.3 Incentive Fees $370.8 $351.8 Equity Earnings $350 Advisory and Includes $112.5m Transaction Fees incentive fee from a $300 Operating Income single client $297.0 $250 $272.9 $202.7 $200 $206.7 $150.4 $150 $109.0 $
Slide 17: LaSalle Investment Management
LaSalle Investment Management Profitable Advisory Fees supports business through challenging market Typical Fee Description Q2 2009 Statistics * Q2 2009 Q2 2008 Structure Separate Account • $17.0 billion of assets • Advisory fees Advisory Fees $59.4 million $72.6 million Management under management
Slide 18: LaSalle Investment Management
LaSalle Investment Management Responding to market challenges while positioning for leadership • Q2 YTD 2009 Advisory revenue = $120 million • Stay close to our clients – constant communication and no surprises • Reinforce asset management teams – bolstering performance is job #1 • Execute targeted
Slide 19: 2009 Year to Date Update
2009 Year to Date Update Seasonal Revenue improvement ($ in millions) 25% $248.6 18% $199.6 $142.9 17% $120.8 $576.1 $494.2 Q1 Q2 Q1 Q2 Americas EMEA 14% $119.3 $104.8 25% $46.2 Q1 Q2 $37.0 Q1 Q2 Q1 Q2 Consolidated Asia Pacific LIM 19
Slide 20: 2009 Year to Date Update
2009 Year to Date Update Seasonal Adjusted EBITDA* improvement ($ in millions) $31.2 $11.4 $49.3 $4.5 ($16.2) Q1 Q2 Q1 Q2 Americas EMEA $16.3 $10.9 $5.7 $7.8 ($0.7) Q1 Q2 Q1 Q2 Q1 Q2 Asia Pacific LIM Consolidated * Refer to Appendix for Reconciliation of GAAP Net Loss to EBITDA and Adjusted EBITDA f
Slide 21: Increased Liquidity Through Decisive Action
Increased 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 ~ $60M with a 3 to
Slide 22: Aggressive Actions Improve Balance Sheet Position
Aggressive Actions Improve Balance Sheet Position Reduced 1st half cash spend before historically strong 2nd half 2009 2008 Jan - Jun Jan - Jun Jul - Dec ($ in millions) Operating Activities Seasonal operating performance Adjusted EBITDA (1) $60 $77 $205 historically stronger in second half Less: Re
Slide 23: Strengthened Capital Structure to Position for Opportunity
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 absolut
Slide 24: World Standard Business Operations
World Standard Business Operations Setting the Industry Standard for Real Estate Service Companies Jones Lang LaSalle is a Leading Real Estate Services Brand: • Staubach acquisition bolsters local market presence Corporate Solutions teams winning new global mandates • •Dominant Global Platform • Cap
Slide 25: Appendix
Appendix (j Jones LANG LASALLE’ 25
Slide 26: Capital and Bank Actions
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 operat
Slide 27: Staubach Acquisition - Transaction Overview
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 $114 million based on performance miles
Slide 28: Lower Capital Markets Revenue Reflects Challenging Market
Lower Capital Markets Revenue Reflects Challenging Market FY 2008 Capital Markets and Hotels revenue ($ in millions; “LC”=Local Currency) 18% 20% 43% in LC 63% 48% in LC $105.2 $347.3 $105.4 (1) (55%) (44%) $89.3 $288.9 (49%) $64.5 $195.8 $53.4 $47.6 2006 2007 2008 2006 2007 2008 2006 2007 2008 Amer
Slide 29: Reconciliation of GAAP Net (Loss) Income to EBITDA and Adjusted EBITDA
Reconciliation of GAAP Net (Loss) Income to EBITDA and Adjusted EBITDA ($ in millions) Three Months Ended Six Months 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) Provis
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