Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - JONES LANG LASALLE INC | d8k.htm |
 Investor Presentation
December 2010
Exhibit 99.1 |
 Forward looking statements
2
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 Risk,” “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, 2009 and in the Quarterly Report on Form
10-Q for the quarter ended September 30, 2010 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 IP, Inc. 2010. All rights reserved. No part of this publication
may be reproduced by any means, whether graphically, electronically, mechanically
or otherwise howsoever, including without limitation photocopying and recording on
magnetic tape, or included in any information store and/or retrieval system without prior written
permission of Jones Lang LaSalle IP, Inc. |
 YTD
2010 FY 2009
FY 2008
(2)
Americas
42%
42%
35%
EMEA
25%
26%
32%
Asia Pacific
23%
22%
20%
LaSalle Investment Mgmt.
10%
10%
13%
Consolidated
100%
100%
100%
Property &
Facility
Management
25%
Project &
Development
Services
13%
LaSalle
Inv.
Mgmt.
10%
Advisory
Consulting &
Other 12%
Leasing
32%
Capital
Markets
8%
United
States 43%
United
Kingdom
10%
Continental
Europe
17%
Greater
China
6%
Developing &
Other Countries
10%
Japan 4%
India 3%
Australia
7%
Jones Lang LaSalle
(1)
Excludes equity losses
(2)
Includes Staubach
revenue commencing July 11, 2008
2009 Revenue = $2.5 billion
Leading integrated services and investment management firm
…
And Global Market Reach
Diversified Service Lines…
•
Leading global market positions bolstered by over
30 mergers and acquisitions since 2005
•
Corporate Outsourcing drives growth and provides
annuity revenue
•
LaSalle
Investment
Management
-
a
premier
global
investment manager winning new mandates
•
Cash generating business model with low leverage
balance sheet
Revenue by Segment
(1)
3 |
 YTD Q3
2010
YTD Q3
2009
Revenue
$2.0B
$1.7B
% change in local currency
17%
(6%)
Net Income
$69M
($56M)
Adjusted Net Income
(1)
$81M
$15M
Earnings Per Share
$1.57
($1.50)
Adjusted Earnings Per Share
(1)
$1.83
$0.40
EBITDA
$179M
$42M
Adjusted EBITDA
(1)
$194M
$126M
Market Capitalization
$3.7B
$2.0B
Demonstrating competitive strength
•
Leasing revenue up by more than 20% in all
regions YTD; EMEA up 34% YTD
•
Property & Facility Management currently 25% of
global revenue
•
LaSalle Investment Management has raised more
than $5 billion in net capital commitments YTD
•
Adjusted operating income margin of 7.2% vs.
4.3% in 2009
YTD Q3 2010 Highlights
Financial Scorecard
(1)
Adjusted for restructuring and non-cash co-investment charges
4 |
 Asia
Pacific Steady Broad-based Recovery in Revenue
Note: % reflects change in local currency terms over YTD Q3 2009
($ in millions;
% change in local currency )
Americas
EMEA
Leasing
Capital Markets &
Hotels
Property & Facility
Management
Project &
Development Services
Advisory, Consulting
& Other
Total RES
Operating Revenue
$410.2
$49.0
$182.7
$110.8
$80.1
$832.8
27%
97%
24%
4%
1%
21%
$133.4
$89.3
$102.3
$82.8
$83.6
$491.4
34%
34%
13%
16%
5%
20%
$97.1
$52.3
$214.4
$44.7
$46.8
$455.3
36%
55%
3%
33%
2%
16%
$640.7
$190.6
$499.4
$238.3
$210.5
$1,779.5
30%
52%
12%
8%
2%
19%
Total RES
Revenue
YTD Q3 2010 Real Estate Services
5 |
 Solid Cash Flows and Balance Sheet Position
•
Strong cash from earnings growth
•
Paid first deferred Staubach
obligation
of $76 million
(2)
•
Renewed and extended credit facility
-
Capacity increased to $1.1 billion,
previously $840 million
-
Maturity extended to September 2015
•
Investment grade ratings affirmed:
Standard & Poor’s:
BBB-
Moody’s Investor Services:
Baa2
YTD Q3 2010 Highlights
Cash Flows
YTD Q3
2010
YTD Q3
2009
Cash from Earnings
$192
$135
Working Capital
(84)
(91)
Cash from Operations
$108
$44
Primary Uses
Capital Expenses
(1)
(23)
(31)
Acquisitions & Deferred Payment Obligations
(113)
(15)
Co-Investment
(25)
(26)
Dividends
(4)
(4)
Net Cash Outflows
($165)
($76)
Net Share Activity & Other Financing
(27)
192
Net Debt (Borrowings) / Repayments
($84)
$160
Balance Sheet
Q3 2010
Q3 2009
Cash
$72
$57
Short Term Borrowings
29
57
Credit Facility
253
292
Net Bank Debt
$210
$292
Deferred Business Obligations
299
392
Total Net Debt
$509
$684
($ in millions)
(1)
YTD Capital Expenditures for 2010 and 2009 net of tenant improvement allowances
received were $22 million and $25 million, respectively (2)
$78
million
due
less
$2
million
deferred
in
accordance
with
the
merger
agreement
6
(Outlook: Stable)
(Outlook: Stable) |
 Steady
cyclical recovery continues Capital Markets Leading Real Estate
Fundamentals Americas
EMEA
Asia Pacific
As of Q3 2010
Capital Values
Leasing Fundamentals
London,
Washington DC
Paris,
Seoul
Beijing
Capital Value
growth slowing
Capital Value
growth
accelerating
Capital Value
bottoming out
Capital Value
falling
Hong Kong
Detroit
Brussels, Dallas
Shanghai
Amsterdam,
Milan,
Mumbai,
Sydney
Moscow,
New York,
Sao Paulo
Chicago, San Francisco,
Singapore, Toronto
Berlin,
Philadelphia,
Stockholm, Tokyo
Paris, Stockholm
Beijing,
Hong Kong
London
,
Shanghai
Milan
Chicago,
Rome,
Seoul
Rental growth
slowing
Rental growth
falling
Rental
growth
accelerating
Rents
bottoming
out
Detroit
Los Angeles,
New York
Brussels
Amsterdam, Atlanta,
Dallas
Berlin,
Mumbai,
San Francisco,
Sydney, Tokyo
Moscow,
Singapore,
Washington DC
7
The
Jones
Lang
LaSalle
Property
Clocks
SM |
 Jones Lang LaSalle
Global strategy for renewed growth
G5
G1
G2
G4
G3
Build our leading local and regional market positions
Grow our leading positions in Corporate Solutions
Capture
the
leading
share
of
global
capital
flows
for
investment
sales
Strengthen LaSalle Investment Management’s leadership position
Connections: Differentiate by connecting across the firm, and with clients
8 |
 Full
productivity revenue of over $750 million Acquisitions Since 2005
Growing Market Share EMEA
Americas
Asia
Pacific
RL Davis
Leechiu
Creer
NSC
Sallmanns
Shore Industrial
Meghraj
Rogers Chapman
Littman Partnership
RSP Group
Area Zero
Hargreaves Goswell
Troostwijk
Makelaars
KHK Group
Camilli
& Veiel
GVA
Upstream
Tetris
Creevy
LLH Ltd.
Brune
Alkas
Kemper’s
Churston
Heard
Staubach
Spaulding & Slye
Zietsman
Klatskin
CRA
Standard Group
ECD
HIA
TCF
Strengthening
our platform
and
connecting
our people
Asset Realty Managers
G1
•
Middle Market Corporate Solutions
•
Leasing
•
Capital Markets
•
Property Management
•
Project & Development Services
•
Retail
•
Industrial
•
Energy & Sustainability Services
•
Infrastructure
Market share growth
Product and services expansion
9 |
 YTD Q3
2010: 52% in local currency (1)
Capturing incremental revenue
Local and Regional Services
Asia Pacific
EMEA
Americas
$593
$781
$753
$557
$317
$203
G1
($ in millions)
YTD Q3 2010: 29% in local currency
(1)
Full Year Comparison
(1)
Compared to YTD Q3 2009
Full Year Comparison
($ in millions)
Leasing
Capital Markets
10 |
 Leading
position with unique expertise across services & geographies
•
Accelerate new client wins and innovate for existing clients to broaden
relationship -
47 new wins, 31 expansions and 44 renewals in 2009
-
170 million sq ft added; 34% increase from December 31, 2008
•
Target new industry segments for continued market share growth
-
Replicate Financial/Pharma/IT success
Global Corporate Solutions
Integrated
Facility
Management
Transaction
Management
Project
Management
Lease
Administration
Mobile
Engineering
Energy &
Sustainable
Services
Strategic
Consulting
Corporate
Finance /
CMG
Client
Relationship
Management
G2
Corporate
Retail
Services
YTD September 2010 Update
•
Property & Facility Management revenue up
12% in local currency vs. Q3 2009 YTD
•
38 new wins, 22 expansions and 21 renewals
•
Project & Development Services revenue up 8%
vs. Q3 2009 YTD; corporates
starting to re-open
capital expenditure budgets
11 |
 YTD
September 2010 Update
Capture Global Capital Flows for Investment Sales
Positioned to leverage leading share as markets recover
G3
Source: Jones Lang LaSalle
35-40% growth in investment volumes projected in 2010
•
Volumes continuing cyclical recovery
•
Demand high for core products;
supply remains constrained
•
Global Hotels business gaining
momentum
12 |
 LaSalle Investment Management
G4
Our # 1 priority: To deliver competitive investment performance
Product
Assets Under
Management
($ in billions)
Average
Performance
Private Equity
U.K.
$10.2
Above benchmark
Continental Europe
$3.9
Return +1x equity
North American
$12.4
Above benchmark
Asia Pacific
$6.6
Return +1x equity
Public Securities
$7.1
Above benchmark
Total AUM
$40.2 B
Context
•
Our track record is everything!
•
It’s
easy
to
invest,
but
it’s
hard
to
invest
prudently
Impact
•
Reputation intact, client loyalty has
strengthened
•
Capital
raising
YTD
Q3
2010:
$5.3
B net
-
Royal Mail takeover: £1.6 B + £300 M
new investment
-
$1.6 B for a new U.S. fund
13 |
 $29.8
B $40.6 B
$49.7 B
$46.2 B
AUM
($ millions)
$37.6 B
$21.5 B
$24.1 B
$23.2 B
2002 to 2009 Advisory Fee Compound Annual Growth Rate = 16%
LaSalle Investment Management
G4
Accomplishments: 2000 -
Present
$40.2 B
Q3 Year-To-Date
Comparison
14
$83.4
$92.2
$101.4
$127.9
$178.1
$245.1
$277.9
$180.1
$176.2
$0
$50
$100
$150
$200
$250
$300
2002
2003
2004
2005
2006
2007
2008
Q3 YTD 2009
Q3 YTD 2010 |
 •
Large, financially and operationally stable global companies will gain market
share •
M & A likely to reshape the landscape
•
Developed countries will be favored for new investment
•
Investors will favor lower risk investments
•
Retail (HNW) capital will increase in importance
•
Private equity funds may be smaller; investor preference for larger separate account
relationships •
Fee structures likely to undergo further scrutiny / change
•
Governance / compliance will ascend in importance
•
Stay the course re: organic growth priorities
-
Deepen relationships with major institutional investors across products, markets
-
Customize investment programs
•
Capitalize on core open-end fund products
•
Establish KAG to access HNW German retail deposits
•
Build a business in China
•
Catalyze growth with strategic acquisitions
-
Current business stable and profitable
-
Strong corporate balance sheet
•
Bolster our securities business by forming JVs with attractive distributors
LIM
Priorities
Current
Industry
Trends
LaSalle Investment Management
G4
Current industry trends & LIM priorities
15 |
 Client
First www.joneslanglasalle.com
G5
Technology
JLL OneView
Connecting Across the Firm and With Clients
Technology enabling value added connections
16
Connecting
JLL to add
value for
clients
JLL
Brand
Market
Knowledge &
Experience
Thought
Leadership &
Research
Colleagues
Sharing
Relationships
Extensive
Capabilities
& Products |
 Premier
Leading 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 Jones Lang
LaSalle Setting the industry standard for real estate service companies
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 service line and geography •Solid balance sheet with investment-grade ratings
•Strong global platform
positioned for opportunity & market recovery
17 |
 Appendix
18 |
 Asia
Pacific Q3 2010 Real Estate Services Revenue
Americas
EMEA
Leasing
Capital Markets &
Hotels
Property & Facility
Management
Project &
Development Services
Advisory, Consulting
& Other
Total RES
Operating Revenue
$152.6
$25.2
$62.6
$40.7
$28.0
$309.1
38%
127%
20%
16%
6%
29%
$47.8
$31.1
$32.6
$29.2
$28.6
$169.3
42%
11%
6%
20%
8%
18%
$35.2
$18.3
$75.6
$19.2
$16.7
$165.0
21%
13%
5%
69%
8%
15%
$235.6
$74.6
$170.8
$89.1
$73.3
$643.4
36%
34%
10%
25%
22%
Total RES
Revenue
2%
($ in millions; % change in local currency over Q3 2009)
Note: Segment and Consolidated Real Estate Services (“RES”) operating
revenue exclude Equity earnings (losses). 19 |
 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 milestones
-
$223 million consideration at close
-
$123 million paid in cash, $100 million paid in Jones Lang LaSalle stock
-
$390 million of deferred payments (present value $339 million)
-
1
st
payment
=
$78m
(paid
August
2010
per
contract
terms),
2
nd
payment
=
$156m
(August 2011),
3
rd
payment = $156m (August 2013)
(1)
•
Approximately $8 million of intangible asset amortization remaining
-
Less than $2 million anticipated in 2010
•
Approximately $2 million of P&L integration expense expected in 2010
Staubach
Acquisition
-
Transaction
Overview
(1)
2nd payment can be deferred an additional 12 months based on performance
20 |
 London,
Washington DC
Paris,
Seoul
Hong Kong,
Shanghai
Beijing
Capital Value
growth slowing
Capital Value
growth
accelerating
Capital Value
bottoming out
Capital Value
falling
Americas
EMEA
Asia Pacific
Hong Kong
Detroit
Brussels, Dallas
Shanghai
Capital Values
Q3 2009
Q3 2010
Capital Value
growth slowing
Capital Value
falling
Capital Value
growth
accelerating
Capital Value
bottoming out
Singapore, Toronto
As of Q3 2010
Amsterdam, Milan, Sao Paulo,
Sydney
Berlin,
Mumbai,
New
York, San Francisco
Stockholm
Brussels, Moscow,
Paris,
Washington DC
Amsterdam,
Milan,
Mumbai,
Sydney
Moscow,
New York,
Sao Paulo
Chicago, San Francisco,
Singapore, Toronto
Beijing,
London,
Seoul
Berlin,
Philadelphia,
Stockholm, Tokyo
Detroit, Philadelphia
Chicago, Dallas
Tokyo
21
The
Jones
Lang
LaSalle
Property
Clocks
SM |
 Paris,
Stockholm Americas
EMEA
Asia Pacific
Leasing Market Fundamentals
Q3 2009
London, Sydney
Amsterdam, Berlin,
Dallas,
Milan,
San Francisco
Los Angeles, New York
Hong Kong,
Mumbai
Atlanta, Detroit, Seoul
Shanghai
Q3 2010
Beijing,
Hong Kong
London
,
Shanghai
Milan
Chicago,
Rome,
Seoul
Detroit
Los Angeles,
New York
As of Q3 2010
The
Jones
Lang
LaSalle
Property
Clocks
SM
Brussels
Amsterdam, Atlanta,
Dallas
Berlin,
Mumbai,
San Francisco,
Sydney, Tokyo
Moscow,
Singapore,
Washington DC
Chicago,
Rome
Stockholm,
Washington DC
Brussels,
Singapore
Beijing,
Paris
Moscow, Tokyo
22
Rental growth
slowing
Rental growth
falling
Rental
growth
accelerating
Rents
bottoming
out
Rental growth
slowing
Rental growth
falling
Rental
growth
accelerating
Rents
bottoming
out |
 Note:
% reflects change in local currency terms over comparable period in the prior year
($ in millions)
Separate Account
Management
(Firm’s co-investment =
$17.0M)
•
$19.0 billion of assets
under management
(16% increase from 2009)
(1)
AUM data reported on a one quarter lag
Fund Management
(Firm’s co-investment =
$160.0M)
•
$14.1 billion of assets
under management
(13% decline from 2009)
Public Securities
(Firm’s co-investment =
$0.1M)
•
$7.1 billion of assets
under management
(42% increase over 2009)
Q3 2010 Statistics
(1)
Q3 2010
YTD 2010
New Separate Accounts Mandates
$500
$4,200
Net New Equity for Funds and Public Securities
500
1,100
Net New Capital Commitments
$1,000
$5,300
Total AUM
$40.2 billion
Operating Revenue
1%
5%
Capital Raising Summary
A premier global investment manager
LaSalle Investment Management
23 |
 Separate
Account Management
(Firm’s co-investment =
$17.0M)
•
$19.0 billion of assets
under management
(16% increase from 2009)
•
Advisory fees
•
Transaction fees
•
Incentive fees
•
Equity earnings
(1)
AUM data reported on a one quarter lag.
Fund Management
(Firm’s co-investment =
$160.0M)
•
$14.1 billion of assets
under management
(13% decline from 2009)
•
Advisory fees
•
Incentive fees
•
Equity earnings
Public Securities
(Firm’s co-investment =
$0.1M)
•
$7.1 billion of assets
under management
(42% increase over 2009)
•
Advisory fees
Description
Q3 2010 Statistics
(1)
Typical Fee
Structure
Europe Private
Equity
$14.1
35.1%
North American
Private Equity
$12.4
30.8%
Asia Pacific Private
Equity
$6.6
16.4%
Total Private
Equity
$33.1
82.3%
Total Public
Securities
$7.1
17.7%
Total AUM
$40.2
100%
Product
Assets Under
Management
%
($ in billions)
A premier global investment manager
LaSalle Investment Management
24 |
 ($ in
millions) Reconciliation of GAAP Net Income (Loss) to
Adjusted Net Income
25
2010
2009
2010
2009
GAAP net income (loss)
37.1
$
19.8
$
69.1
$
(56.1)
$
Shares (in 000's)
44,089
43,300
44,064
37,432
GAAP earnings (loss) per share
0.84
$
0.46
$
1.57
$
(1.50)
$
GAAP net income (loss)
37.1
$
19.8
$
69.1
$
(56.1)
$
Restructuring, net of tax
0.3
3.6
4.2
31.1
Non-cash co-investment charges, net of tax
0.7
3.2
7.4
40.4
Adjusted net income
38.1
$
26.6
$
80.7
$
15.4
$
Shares (in 000's)
44,089
43,300
44,064
38,880
Adjusted earnings per share
0.86
$
0.61
$
1.83
$
0.40
$
Three Months Ended
September 30,
Nine Months Ended
September 30,
Note: Basic shares outstanding are used in the calculation of GAAP EPS for the nine
months ending September 30, 2009, as the use of dilutive shares outstanding
would cause that EPS calculation to be anti-dilutive. |
 ($ in
millions) Reconciliation of GAAP Net Income (Loss) to
EBITDA and Adjusted EBITDA
26
2010
2009
2010
2009
Net income (loss)
37.1
$
19.8
$
69.1
$
(56.1)
$
Interest expense, net of interest income
11.5
16.3
35.7
43.6
Provision (benefit) for income taxes
11.1
3.5
20.8
(9.8)
Depreciation and amortization
17.7
18.7
53.0
64.6
EBITDA
77.4
$
58.3
$
178.6
$
42.3
$
Non-cash co-investment charges
0.9
3.7
9.6
47.5
Restructuring
0.4
4.2
5.5
36.6
Adjusted EBITDA
78.7
$
66.2
$
193.7
$
126.4
$
Three Months Ended
September 30,
September 30,
Nine Months Ended |