Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Investor Presentation (November 2009)
23 slides from Jones Lang Lasalle's investor presentation, Nov 5, 2009
Slide 1: Investor Presentation
Investor Presentation November 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: Leading real estate services and investment management firm
Jones Lang LaSalle 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 = $2.7 billion 22,100 whose costs are
Slide 5: Local and Regional Services: Occupier position strengthened in shifting market
Local and Regional Services Occupier position strengthened in shifting market Atlanta, Detroit, Edinburgh, Seoul, Toronto Chicago, Frankfurt, Philadelphia, Rome Rental Boston, Denver, Los Angeles, New York growth Rents Amsterdam, Berlin, Dallas, Madrid, Milan, San Francisco slowing falling Stockholm
Slide 6: Leasing Revenue Growth with Increased Market Share
Leasing Revenue Growth with Increased Market Share FY 2008 and Q3 2009 Leasing revenue ($ 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 $87.3 2006 2007 2008 2006
Slide 7: Global Corporate Solutions: Strong contribution to growth and profitability
Global Corporate Solutions A global leader in real estate outsourcing services Strategic Transaction Consulting Management Strong contribution to growth and profitability: Project Lease • Ongoing success with corporate relationships Management Client Relationship Administration - 35 new contractual
Slide 8: Global Corporate Solutions: Leading position across services and geographies
Global Corporate Solutions Leading position with unique expertise across services & geographies EMEA • Outsourcing historically U.S. sourced for U.S. based multinationals • Staubach client relationships accelerating U.S. market share gain 16% Asia • Highest margin contribution from Americas given sc
Slide 9: Integrated Sustainability Services and Best Practices
Integrated Sustainability Services and Best Practices Energy conservation and cost savings a growing priority Making an impact • Over 500 LEED Accredited Professionals “I chose Ray Quartararo and • Managed 73 LEED projects, totaling over 35 million square feet 5 Jones Lang LaSalle because of our suc
Slide 10: Capital Markets and Hotels Revenue
Capital Markets and Hotels Revenue Year on year comparisons reflect revenue declines slowing or reversing ($ in millions, % in Local Currency terms) Q3 Q2 Q3 Q2 50.8 45.9 (55%) (27%) 30.2 (62%) 21.3 22.7 (66%) 16.5 8.1 5.6 2009 2008 Americas 2009 2008 2009 2008 2009 2008 EMEA Q3 Q2 Q3 Q2 81.5 81.5 (
Slide 11: Capital Markets - Value Recovery Services
Capital Markets - Value Recovery Services Advising clients navigating a difficult economic climate Providing advice to a major Appointed by administrator bank for an extensive to sell a U.K. shopping property portfolio in the U.K. center totaling 1 million and continental Europe square feet of retai
Slide 12: LaSalle Investment Management: Premier global investment manager
LaSalle Investment Management Premier global investment manager – safe hands in a stressed sector OVERVIEW CURRENT PRIORITIES • Over 25 years real estate investment • Stay close to our clients – constant experience in Europe and North America, communication and no surprises and investing in Asia Pac
Slide 13: LaSalle Investment Management: Profitable Advisory Fees
LaSalle Investment Management Profitable Advisory Fees support business through challenging market ($ millions) $400 $384.3 (1) $370.8 Incentive and Transaction $351.8 Fees $350 Equity Earnings Q3 2009 Q3 2008 Advisory Fees $300 Operating Income Advisory $61.2 $71.0 $277.9 Fees (2) million million $
Slide 14: 2009 Year to Date Update
2009 Year to Date Update Seasonal Quarterly Revenue growth ($ in millions) (4)% 25% $248.6 $238.8 18% 8% 3% $199.6 17% $154.2 $142.9 $120.8 $595.3 $576.1 $494.2 Q1 Q2 Q3 Q1 Q2 Q3 Americas EMEA 14% 14% $136.4 (4)% 3% $119.3 $104.8 $66.2 $63.7 $65.9 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Consolidated (1) Asia Pac
Slide 15: Aggressive Actions Improve Balance Sheet Position
Aggressive Actions Improve Balance Sheet Position Reduced spending and strong cash generation drive net debt repayment 2009 2008 Jan - Sept Jan - Sept Oct - Dec ($ in millions) Net Cash from/(used in) Operations $44 ($113) $146 Primary Uses of Cash (1) Capital Expenses (31) (72) (32) Acquisitions &
Slide 16: Strengthened Capital Structure to Position for Opportunity
Strengthened Capital Structure to Position for Opportunity Amended credit facilities; follow-on common stock issuance (1) Strength • Differentiated financial strength among private and public global real estate service providers - Investment grade rated; Moody’s Baa2 (Stable Outlook), S&P BBB- (Stab
Slide 17: 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 • Ca
Slide 18: Appendix
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Slide 19: LaSalle Investment Management Assets Under Management
LaSalle Investment Management Assets Under Management Typical Fee Description Q3 2009 Statistics * Structure Separate Account Management • $16.4 billion of assets • Advisory fees (Firm’s co-investment = $21.8MM) under management • Transaction fees (34% decline from 2008) • Incentive fees • Equity ea
Slide 20: 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 21: 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 22: 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 23: 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, plus additional earn out opportunities of up to $114 million based on performance milestone
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