Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Investor Presentation (November 2008)
22 slides from Jones Lang Lasalle's investor presentation, Nov 4, 2008
Slide 1: Investor Presentation
Investor Presentation November 2008
Slide 2: Our Vision – Global and Diversified Growth
Our Vision – Global and Diversified Growth The chosen real estate expert and strategic adviser to the leading occupiers and investors around the world Jones Lang LaSalle’s Leading Market Position: Diversity In Uncertain Environment G1 Local and Regional Service Operations Execution • Current Capital
Slide 3: Forward looking statements
Forward looking statements Statements in this presentation regarding, among other things, future financial results and performance, achievements, plans and objectives, dividend payments and share repurchases may be considered forward-looking statements within the meaning of the Private Securities Li
Slide 4: Global Diversified Revenue
Global Diversified Revenue Operating Income Margin Total 2007 Revenue = $2.7 billion(1) 2005 2006 2007 LaSalle Investment LaSalle Investment Mgmt(1) 24.9% 32.4% 30.2% Management Americas 11.6% 10.5% 10.5% 14%(1) EMEA 5.0% 6.5% 9.9% Asia Pacific 7.3% 5.5% 11.7%(2) Americas Pro Forma 2007 Revenue (inc
Slide 5: Diversified Revenue by Service
Diversified Revenue by Service Business unit spread Total 2007 Revenue = $2.7 billion Money Management Facility 14% Occupier Services Mgmt. 28% 5% Capital Markets Project and 22% Development Services Pro Forma 2007 Revenue (including 15% Staubach) = $3.0 billion Tenant Representation 4% 12% 8% 15% A
Slide 6: Strategic Investments and Acquisitions Expand Footprint
Strategic Investments and Acquisitions Expand Footprint Strengthen Market Position and Diversify Globally Jones Lang LaSalle’s Investment and Acquisition Strategy: New geographies provide Strengthen presence and New service lines enhance immediate scale capture market share product offerings • Dubai
Slide 7: Integrated Sustainability Services and Best Practices
Integrated Sustainability Services and Best Practices Reduce clients’ carbon footprint Jones Lang LaSalle Global Sustainability Strategy Sustainability Commitment: • Lead the transformation of the property • Commercial buildings are major producers of industry by reducing the environmental greenhous
Slide 8: G1 Local and Regional Services
G1 Local and Regional Services Global clock reflecting real estate fundamentals Atlanta, Beijing, Chicago, Los Angeles Madrid, Paris, Sao Paulo Amsterdam, Boston, Denver, San Francisco, Singapore Dublin, Hong Kong Stockholm Brussels, London, New York, Shanghai, Moscow, Toronto Washington DC Sydney F
Slide 9: G2 Global Corporate Solutions
G2 Global Corporate Solutions A global leader in real estate outsourcing services Contributing to growth and profitability: • Expanding new and existing corporate relationships - 32 new contractual relationships through September 2008 - 34 expanded relationships with existing clients - 100% renewal
Slide 10: The Staubach Company Overview
The Staubach Company Overview Premier US Brand in Tenant Representation Services • Staubach is a market-leading real estate advisory firm with a presence in over 20 U.S. markets - Established over 30 years ago by Roger Staubach • Loyal employee base with more than 1,000 employees - 94% professional
Slide 11: 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 $114 million based on performance miles
Slide 12: Leasing Revenue Growth with Increased Market Share
Leasing Revenue Growth with Increased Market Share Q3 2008 Leasing Revenue ($ in millions) 26% 11% 80% 55% $63.0 37% $31.6 $97.6 $28.5 $50.0 11% $20.8 $54.3 $32.2 $49.0 2006 2007 2008 2006 2007 2008 2006 2007 2008 Americas EMEA Asia Pacific 45% 30% $192.2 $132.8 $102.0 2006 2007 2008 Consolidated 12
Slide 13: Leasing Revenue Growth with Increased Market Share
Leasing Revenue Growth with Increased Market Share YTD September 2008 Leasing Revenue ($ in millions) 25% 26% 46% 38% 41% $94.1 26% $214.6 $172.6 $74.9 $137.6 $146.6 $99.4 $53.3 $116.3 2006 2007 2008 2006 2007 2008 2006 2007 2008 Americas EMEA Asia Pacific 34% 33% $481.2 $359.1 $269.0 2006 2007 2008
Slide 14: G3 Global Capital Markets
G3 Global Capital Markets Reduced Activity in 2008 Off Record 2007 with Continued Challenging Environment Direct Commercial Property Transactions(1) Cross Border 2007 $759 billion (+8%) $357 billion (+19%) 2006 $700 billion (+41%) $299 billion (+80%) 2005 $495 billion (+26%) $166 billion (+41%) 2004
Slide 15: Lower Capital Markets Revenue Reflects Challenging Market
Lower Capital Markets Revenue Reflects Challenging Market YTD September 2008 Capital Markets and Hotels Revenue ($ in millions) 40% (41%) 34% (42%) (43%) 100% $73.7 $232.9 $64.2 $55.2 $166.3 $42.8 $137.8 $36.7 $32.1 2006 2007 2008 2006 2007 2008 2006 2007 (1) 2008 Americas EMEA Asia Pacific 46% (41%
Slide 16: G4 LaSalle Investment Management
G4 LaSalle Investment Management Delivering Annuity Revenue and Incentive Fees Incentive Fees Equity Earnings ($ Millions) Advisory and Transaction Fees $400 $384.3 $370.8 Operating Income $360 Includes $112.5m incentive fee from a $320 single client $280 $261.3 $240 32% $272.9 $202.7 growth $200 $2
Slide 17: G4 LaSalle Investment Management
G4 LaSalle Investment Management A Global Business and Differentiator for Our Firm Typical Fee Assets Under Description Q2 2008 Statistics Product % Structure Management Separate Account • $24.9 billion of assets • Advisory fees European Private $18.6 35.3% Management under management • Transaction
Slide 18: G4 LaSalle Investment Management
G4 LaSalle Investment Management Funds Driving AUM Growth, Advisory Fees and Potential Incentive Fees Vintage Number Original Buying Percentage Investment Style Region Year of Funds Power ($MM) Funded 2001 Value-Add 1 Europe $1,000 100% Value-Add Americas 2002 2 $1,700 100% Opportunistic Asia Pacifi
Slide 19: The Leading Real Estate Services Brand
The Leading Real Estate Services Brand • Dominant Global Platform - Approximately 180 offices in over 60 countries worldwide - Research-driven global money management business - Client demands for global expertise satisfied by few providers • Solid Financial Performance & Position - Diversified reve
Slide 20: Appendix: Superior Cash Flow & Capital Structure
Appendix 1 Superior Cash Flow & Capital Structure
Slide 21: Superior Cash Flow
Superior Cash Flow Actual $ MM 2007 2006 2005 Operating Income $342 $244 $132 Plus: Depreciation and Amortization 56 49 34 Plus: Equity Earnings and Other 15 9 11 EBITDA $413 $302 $177 Explanation of EBITDA Less: Interest Expense (13) (14) (4) Less: Income Taxes (88) (64) (36) • EBITDA represents ea
Slide 22: Acquisition Impact on Balance Sheet
Acquisition Impact on Balance Sheet Two Significant 2008 Acquisitions – Kemper’s Group & Staubach Acquisition Financing Structure Balance Sheet Highlights Kemper’s Staubach Sept 30, 2008 Sept 30, 2007 May 2, 2008 July 11, 2008 Total Bank Debt $543 $84 Bank Debt $129 $123 $252 PV of Deferred Payments
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