Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Investor Presentation (June 2009)
26 slides from Jones Lang Lasalle's investor presentation, Jun 11, 2009
Slide 1: Investor Presentation
Investor Presentation June 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 globalfirmwithCorporate Outsourcing asa growthopportunity inthecurrent environment •LaSalleInvestment Management a valuedifferentiator asa premium money management business •Demonstrated abilitytoadaptanddeliverinnovative products andservices: Energy and Susta
Slide 4: Strengthen Capital Structure to Position for Opportunity
Strengthen Capital Structure to Position for Opportunity Two-Pronged Approach •Creditfacilitiesamended foradditional operating andfinancialflexibility - Maintained $865 million total borrowing capacity and June 2012 maturity - Additional restructuring and non-cash charge exclusions - Leverage Ratio
Slide 5: Jones Lang LaSalle Incorporated
Jones Lang LaSalle Incorporated Leading real estate services and money management firm • Provides comprehensive integrated real estate services and investment management expertise Diversified Revenue by Service Line • Approximately 36,200 employees, including Total 2008 = $2.7 billion 22,100 whose c
Slide 6: Global Strategy
Global Strategy Focused on emerging from the global financial crisis in a stronger competitive position Local and Regional • Activity levels anticipated to be down globally G1 Service Operations • Market share to offset transaction declines; successful Execution integration of acquisitions; new prod
Slide 7: Local and Regional Services
Local and Regional Services Occupier position strengthened in shifting market Rome, Toronto Edinburgh, Milan,Washington DC Amsterdam Atlanta,Berlin,Boston, Chicago, Denver,Frankfurt, LosAngeles, NewYork,Philadelphia,SanFrancisco, Singapore, Sydney Seoul Beijing,Dublin,Madrid,Paris,Shanghai, Stockhol
Slide 8: Leasing Revenue Growth with Increased Market Share
Leasing Revenue Growth with Increased Market Share FY 2008 and Q1 2009 Leasing revenue ($ in millions; “LC”=Local Currency) FY 2008 25% in LC 8% in LC 6% in LC 25% 31% (1) 52% 9% 45% 5% $727.8 39% $132.7 (1) $126.2 18% $348.3 $246.7 $582.4 $226.9 $87.3 $444.6 $229.3 $162.8 $194.5 2006 2007 2008 2006
Slide 9: The Staubach Company Integration
The Staubach Company Integration Premier U.S. brand in Tenant Representation services • Staubach was a market-leading real estate advisory firm with a presence in over 20 U.S. markets - Established over 30 years ago by Roger Staubach • Fully integrated into JLL with Staubach management leading broke
Slide 10: Global Corporate Solutions
Global Corporate Solutions A global leader in real estate outsourcing services Strong contribution to growth and profitability: Client • Ongoing success with corporate relationships Relationship Management - 43 new contractual relationships in 2008 - 46 expanded relationships with existing clients •
Slide 11: Global Corporate Solutions
Global Corporate Solutions Leading position with unique expertise across services & geographies • 22 new wins in Q1 2009 vs. 14 in Q1 2008 EMEA 16% • Outsourcing historically U.S. sourced for U.S. based multinationals Asia Americas Pacific • Staubach position bolsters offering capabilities to corpor
Slide 12: Integrated Sustainability Services and Best Practices
Integrated Sustainability Services and Best Practices Energy conservation and cost savings a growing priority Making an impact in 2008 “I chose Ray Quartararo and • Over 400 LEED Accredited Professionals 5 Jones Lang LaSalle because • Managed 73 LEED projects, totaling over 35 million Partner of our
Slide 13: Lower Capital Markets Revenue Reflects Challenging Market
Lower Capital Markets Revenue Reflects Challenging Market Q1 2009 Capital Markets and Hotels revenue ($ in millions; “LC”=Local Currency) 53% in LC 15% in LC (14%) $8.6 $7.5 $41.4 $7.3 (62%) (34%) $4.9 $15.7 2008 2009 2008 2009 2008 2009 Americas EMEA Asia Pacific 42% in LC $57.5 (51%) $27.9 2008 20
Slide 14: Capital Markets - Value Recovery Services
Capital Markets - Value Recovery Services Advising clients navigating a difficult economic climate Providing advice to a major Successfully restructured bank for an extensive large property investment property portfolio in the U.K. group in conjunction with a and continental Europe major U.K. bank A
Slide 15: LaSalle Investment Management
LaSalle Investment Management Premierglobalinvestment manager – safehandsin a stressed sector OVERVIEW REAL ESTATE AUM – TOP RANKINGS (1) ($ in billions) • Over 25 years real estate investment experience in Europe and North America, and investing in Asia Pacific for 10 years $140.0 $139.0 • Over 300
Slide 16: LaSalle Investment Management
LaSalle Investment Management Delivering annuity-based revenue ($ Millions) $400 $384.3 $370.8 Incentive Fees $351.8 Equity Earnings $350 Includes $112.5m Advisory and Transaction Fees incentive fee from a Operating Income single client $300 $297.0 $250 $272.9 $202.7 $200 $206.7 $150.4 $150 $109.0 $
Slide 17: LaSalle Investment Management
LaSalle Investment Management A global business and differentiator for our firm Typical Fee Assets Under Description Q1 2009 Statistics * Product % Structure Management Separate Account • $19.1 billion of assets • Advisory fees European Private $12.9 31.4% Management under management • Transaction f
Slide 18: LaSalle Investment Management
LaSalle Investment Management Responding to market challenges while positioning for leadership • Q1 2009 Advisory revenue = $60 million, up 3% in local currency vs. Q1 2008 • Stay close to our clients constant – communication and no surprises • Reinforce asset management teams bolstering – performan
Slide 19: Increased Liquidity Through Decisive Action
Increased Liquidity Through Decisive Action Cost and Cash Actions 2008 and Q1 2009 Cost Actions • $100M annualized savings in Base Compensation and Benefits - Staffing reductions of ~ 10% across the Firm (~1,400 people) - Cumulative severance-related restructuring charges of ~ $40M with a 3 to 6 mon
Slide 20: Capital and Bank Actions
Capital and Bank Actions Simultaneous actions taken with lenders Equity Issuance (1) 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 • Received majority approval (subj
Slide 21: Improve “Financial Position” to All Stakeholders
Improve “Financial Position” to All Stakeholders Debt Covenants with additional operating and financial flexibility (1) Reported March 31, 2009 Reported Proforma Leverage Ratio Calculation: (2) Credit Facilities $ 496 $ 278 Deferred Business Acquisition Obligations 377 377 Other - Letters of Credit,
Slide 22: Strengthen capital structure to position for opportunity
Strengthen 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
Slide 23: 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: • Dominant Global Platform - Approximately 180 offices in over 60 countries worldwide - Research-driven global money management business - Cl
Slide 24: Appendix
Appendix @ Jones LANG LASALLE’
Slide 25: 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 toreceiveguaranteed payments of$613million(1), plusadditional earnout opportunities of up to $114 million based on performance milestones -
Slide 26: Lower Capital Markets Revenue Reflects Challenging Market
Lower Capital Markets Revenue Reflects Challenging Market FY 2008 Capital Markets and Hotels revenue ($ in millions; “LC”=Local Currency) 18% 20% 43% in LC 63% 48% in LC (1) $105.2 $347.3 $105.4 (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
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