Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - JONES LANG LASALLE INC | d8k.htm |
 Investor Presentation
Jones Lang LaSalle
& King Sturge to merge EMEA operations
May 2011
Exhibit 99.1 |
 2
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
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,
2010
and
in
the
Quarterly
Report
on
Form
10-Q
for
the
quarter
ended
March
31,
2011
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.
2011.
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. |
 3
Market Trends
Early stages of cyclical recovery
Leverage leading global market positions for
improved transactional revenue
Jones
Lang
LaSalle
Action
Outsourcing trend continuing
and broadening across sectors
Continue Corporate Solutions leadership; capture
emerging sectors (e.g. Healthcare, Government
and Infrastructure)
Strongest real estate asset
managers attracting capital
LaSalle raised $5 billion of net new capital in 2010;
strong reputation and good momentum entering 2011
Industry consolidation resuming
Pursue growth within G5 strategy and financial
objectives
Jones Lang LaSalle
Leading brand well positioned for growth |
 4
Strategic Rationale
Aligned with G1 strategy to secure market leadership
•
Strengthens JLL’s leading position in both the UK and EMEA markets
-
London
is
a
mature
and
highly
transparent
market;
#1
destination
of
international
capital
the last two years
•
Complementary service offerings; each firm brings important strengths
Jones Lang LaSalle /
King Sturge
CB Richard Ellis
Cushman &
Wakefield
Savills
Catela Property Group
Colliers International
BNP Paribas
DTZ
European Investment Volume
(€
in billions)
-
Clients benefit from powerful combined Capital
Markets team with access to JLL’s global platform
-
Depth and scale added to services including
industrial, global logistics, and retail
-
King Sturge’s Advisory and Property
Management businesses complement JLL and
increase EMEA’s resiliency to economic cycles
-
King Sturge's strong high-end London residential
platform gains access to JLL's market leading
Asian network
Source: PropertyEU Research, PropertyEU Magazine May 2011
Based on European investment transactions in excess of €20 million in
2010. Strategic
Fit
-
King Sturge was Property Week’s U.K. Investment Agency of the Year; Jones
Lang LaSalle was Property Week’s U.K. Office Agent of the Year
|
 5
•
JLL and King Sturge have executed a merger agreement with closing
expected on May 31, 2011
•
Purchase price £197 million ($319 million) with a five-year deferred
payment structure
•
JLL and King Sturge have a shared culture of excellence, teamwork and
collaboration
•
Operating margins, ex-transaction related charges, strongly accretive to
the higher end of JLL EMEA’s medium-term Operating Income Margin
target of 8-10%
Transaction Overview
Transaction
Highlights
A merger of equals in EMEA
Note: Assumes GBP/USD
conversion rate of 1.62
King Sturge
Overview
•
King Sturge is a market-leading London-based mixed property services
business -
Over 85 partners and approximately 1,600 employees, over 1,300 U.K. based
•
Client focused, strong team ethic and highly respected in the market
•
Annual revenue approximately £160 million ($259 million)
-
U.K. revenue over 85%
-
Combined Firm becomes largest real estate services provider across the EMEA
region with complementary
service offerings |
 6
Financial Details
Transaction summary
Valuation
Overview
•
Purchase price = £197 million ($319 million) all cash; five-year deferred
payment structure
•
Payment structure
Q1 2011
Transaction
Impact
Pro Forma
Q1 2011
Cash
$101
$ -
$101
Short Term Borrowings
42
-
42
Credit Facility
278
159
437
Net Bank Debt
$219
$159
$378
Deferred Business Obligations
293
143
(1)
436
Total Net Debt
$512
$302
$814
Integration
•
Collaborative approach including leadership positions for both firms
•
Strong retention structure for partners including deferred payments and
employment agreements
Pro Forma
Capitalization
Note: Assumes GBP/USD conversion rate of 1.62
(1)
$143
million
reflects
the
present
value
of
the
deferred
payments
at
the
time
of
closing.
-
Additional
£16
million
($26
million)
to
be
paid
as
retention
to
King
Sturge
non-partners
and
treated
as
expense
over
two
years
under
U.S.
GAAP
-
£98
million
($159
million)
funded
upfront
-
Deferred
payments
spread
evenly
over
five
years
-
Currently
projecting
approximately
£15
million
($24
million)
of
integration
costs |