Oracle Real Estate Management Why is Real Estate

Oracle Real Estate Management

Why is Real Estate Management Important? “The workplace represents a large portion of an enterprise's overhead cost, second only to labor costs. ” -Gartner, Drive Value Through Workplace Change, Michael Bell, 16 -January-2003

The Real Estate Market Oracle Real Estate Management

Who do we define as the Real Estate Market? Entities that lease, own, or manage buildings or facilities that they lease, own, or manage EVERYBODY has real estate

Real Estate Market by Segments Ÿ Tenants – – May sublease acting as landlord Segmented by industry Ÿ Building Owners – – – Buy and sell properties Segmented by industry May outsource management of properties Ÿ Developers – – Construct from ground up May manage or outsource Ÿ Property Management Companies – – – Don’t own or lease anything Provide real estate management as a service May act on behalf of Building Owners, Tenants, or both Ÿ Brokers – Facilitate real estate transactions between buyers and sellers

Real Estate Market by Industry Other • General business • Manufacturers • Professional Services Retail/Franchise • Retail store • Quick service/Fast Food • Banks/Insurance Commercial Real Estate • Investment Real Estate • Banks/Insurance • Developers Healthcare Comms/ Utilities • Hospitals • Healthcare Services • HMOs • Wireless Carriers • Wireline Carriers • Power/Water/Gas Government • Army Housing • Property Administration • Military Stores Higher Education • Campus Management • Dormitories • Investment Real Estate C O R P O R A T E R E A L E S T A T E

Market Trends Ÿ Entities that manage real estate are finally starting to embrace technology Ÿ Consolidation of software providers is causing concern Ÿ Many of the incumbent solutions built on old technology and don’t have the capital to stay current Ÿ Current economics forcing them to manage their real estate holdings and commitments better

Markets for Oracle Property Manager Ÿ Corporate Real Estate – – Large, multi-national Telecommunications Ÿ Commercial Real Estate – – REIT’s Developer/Owners Ÿ Retail Real Estate – – Fast Food/Chain Restaurants Banks/Insurance Companies

Corporate Real Estate Ÿ Existing EBS Customers – – Most of the setup already done Fold real estate transactions into existing business process Ÿ Space Management – Understanding current utilization of space to drive economic utilization of space Ÿ Landlord Functionality – Supports subleasing of under utilized space Ÿ Integration with Enterprise Asset Management – – Natural extension of managing space Integration to Supply Chain

The Oracle Real Estate Management Solution Footprint Oracle Real Estate Management

Major Functions of Real Estate Construction Management Sales and Lease Marketing/ Administration Deal and Space Management Procurement Facilities Management

Oracle Real Estate Management Construction Management Oracle Projects • Site Selection • Construction • Leasehold Improvement • Build Out • Rebilling • Demolition Sales and Marketing/ Deal Management Lease Administration and Space Management Oracle Sales/ Oracle Marketing Oracle Property Manager/ Oracle Financials • Contact Management • Deal Tracking • Collaborative Negotiation • Collateral Management • Lease Execution • Milestones • Rent Calculation • Transaction Processing • Space Administration Procurement Facilities Management Oracle Enterprise Asset Management • Facilities Requests • Maintenance Requests • Predictive Maintenance • Compliance

Oracle Real Estate Management Ÿ Financials – – – Oracle Financials – Oracle Discrete Manufacturing Oracle i. Receivables Ÿ Procurement Oracle Advanced – Oracle Purchasing Collections – Oracle i. Procurement Oracle Financial and Sales – Oracle Sourcing Analyzer – Oracle i. Supplier Portal Oracle Internet Expenses Ÿ Maintenance Management – Oracle Enterprise Asset Management Ÿ Projects – – – Ÿ Manufacturing Ÿ Sales – Oracle Sales Online Ÿ Marketing – Oracle Marketing Ÿ Service Oracle Projects – Oracle i. Support Oracle Project Billing – Oracle Tele. Service Oracle Project Collaboration – Oracle Field Service

Solutions by Perspective - Landlord Ÿ Financials – – – Oracle Financials – Oracle Discrete Manufacturing Oracle i. Receivables Ÿ Procurement Oracle Advanced – Oracle Purchasing Collections – Oracle i. Procurement Oracle Financial and Sales – Oracle Sourcing Analyzer – Oracle i. Supplier Portal Oracle Internet Expenses Ÿ Maintenance Management – Oracle Enterprise Asset Management Ÿ Projects – – – Ÿ Manufacturing Ÿ Sales – Oracle Sales Online Ÿ Marketing – Oracle Marketing Ÿ Service Oracle Projects – Oracle i. Support Oracle Project Billing – Oracle Tele. Service Oracle Project Collaboration – Oracle Field Service

Solutions by Perspective – Tenant Ÿ Financials – – – Oracle Financials – Oracle Discrete Manufacturing Oracle i. Receivables Ÿ Procurement Oracle Advanced – Oracle Purchasing Collections – Oracle i. Procurement Oracle Financial and Sales – Oracle Sourcing Analyzer – Oracle i. Supplier Portal Oracle Internet Expenses Ÿ Maintenance Management – Oracle Enterprise Asset Management Ÿ Projects – – – Ÿ Manufacturing Ÿ Sales – Oracle Sales Online Ÿ Marketing – Oracle Marketing Ÿ Service Oracle Projects – Oracle i. Support Oracle Project Billing – Oracle Tele. Service Oracle Project Collaboration – Oracle Field Service

Streamline Real Estate Management Site Selection & Acquisition Construction Management Operations and Facilities Management Site / Asset Disposal • Identify site candidates for lease or purchase • Review and approve acquisition • Track costs & progress of construction projects • Schedule resources (labor, materials, equipment) • Service facilities and assets • Meet financial obligations (e. g. , lease payments) • Track individual and aggregate site profitability • Determine whether to keep or close site

Site Selection and Acquisition Oracle Products Ÿ Site Selection – – Planning next store opening or office opening or relocation Intensive data analysis Ÿ Acquisition – – Opportunity management from a Landlord perspective Project management from a Tenant perspective Oracle Sales and Financial Analyzer Oracle Discoverer Oracle Daily Business Intelligence Oracle Sales Online Oracle Marketing Oracle Projects Oracle Project Collaboration Oracle Financials Oracle Internet Expenses

Deal Management Expedite Time to Lease with Collaborative Negotiation Create Collateral Manage Opportunities Virtual Collaboration • Property brochures • Websites • Track progress of deal • Share among team members • Share documents and drawings • Version track living documents Build Collateral Market Track Opportunities Collect Cost Negotiate Execute Market Property Opportunity Costs Close the Deal • Lease spaces or entire properties • Leverage contacts • Site inspection • Travel costs • Collect signatures • Begin abstraction into Oracle Property Manager Build Relationships • Capture history of all interactions • Use in positioning on next opportunity or opportunity with same entity

Construction Management Oracle Products Ÿ Corporate and Retail/Franchise – – – Leasehold improvements Refurbishments Store build outs Ÿ Commercial Real Estate – Building construction Oracle Financials Oracle Project Collaboration Oracle i. Procurement Oracle Purchasing Oracle Sourcing Oracle i. Supplier Portal Oracle Discrete (Project) Manufacturing

Operations and Facilities Management Oracle Products Ÿ Operations – – – Financial management Lease execution Space management Ÿ Facilities Management – – Facilities request execution Preventative maintenance Oracle Financials Oracle Property Manager Oracle i. Receivables Oracle Enterprise Asset Management Oracle Projects Oracle Project Collaboration Oracle Purchasing Oracle i. Procurement Oracle i. Supplier Portal Oracle i. Support

Comprehensive Property Management Improve Lease and Space Administration Set Terms Pay & Receive Take Action • Capture property info • Establish contract • Create transactions • Automate approvals • Exercise options • Ensure compliance Create Lease Assign Transact Monitor Execute Analyze Allocate Space Track Milestones Summarize • Assign tenants • Partition floor space • Identify key dates • Send alerts • Determine utilization • Calculate profitability Maintain & Leverage • Capture performance and changes to terms • Use for future decisions & negotiations

Facilities Management Solution Ÿ Enterprise Asset Management – – Self-Service Work Request Extension of e. AM Ÿ Customer Relationship Management – – – Oracle i. Support Oracle Tele. Service Oracle Field Service

Site/Asset Disposal Oracle Products Ÿ Corporate – – Excess capacity Consolidation opportunity Ÿ Retail/Franchise – – Under performing stores Unused store fixtures Ÿ Commercial – – Low profitability Consistently high vacancy rates Oracle Financials Oracle Property Manager Oracle Discoverer Oracle Sales and Financial Analyzer

Oracle Real Estate Management Ÿ Financials – – – Oracle Financials – Oracle Discrete Manufacturing Oracle i. Receivables Ÿ Procurement Oracle Advanced – Oracle Purchasing Collections – Oracle i. Procurement Oracle Financial and Sales – Oracle Sourcing Analyzer – Oracle i. Supplier Portal Oracle Internet Expenses Ÿ Maintenance Management – Oracle Enterprise Asset Management Ÿ Projects – – – Ÿ Manufacturing Ÿ Sales – Oracle Sales Online Ÿ Marketing – Oracle Marketing Ÿ Service Oracle Projects – Oracle i. Support Oracle Project Billing – Oracle Tele. Service Oracle Project Collaboration – Oracle Field Service

Oracle Real Estate Management Key Value Propositions Ÿ Optimize construction execution keeping projects on-time and on-budget Ÿ Reduce administrative costs by automating lease execution and optimizing space utilization Ÿ Lower maintenance cost with efficient work order and preventative maintenance execution Ÿ Provide data transparency through a single repository of real estate activity data

Oracle Property Manager Functional Update

Oracle Property Manager Ÿ Property Definition Ÿ Space Management Ÿ Lease Administration Ÿ User Definable Billing and Payment Terms Ÿ Rent Increases Ÿ Variable Rent Ÿ Recoveries Ÿ Full Integration to Receivables and Payables

Recoveries Ÿ Oracle’s term for our support of Common Area Maintenance (CAM) functionality Ÿ Open design to accommodate any recoverable expense Ÿ Integration to Oracle General Ledger but also supports other expense sources Ÿ Solidifies our footprint for Commercial Real Estate Management

Recoveries Value Propositions Ÿ Automates process of CAM billing and reconciliation Ÿ Minimizes errors throughout the recovery calculation Ÿ Ensures complete recovery of all CAM and other expenses through integration with Oracle General Ledger

Dynamic Location Naming Ÿ User Definable Labels – – Building – Floor – Office Land – Parcel – Section Ÿ Addresses needs across markets – – Retail ŸMall – Level – Unit Communications ŸSite – Tower – Area

Date Effective Space Definition Ÿ Supports markets that offer or manage flexible space Ÿ Allows for definition of prospective or future space Ÿ Provides robust data model for sophisticated spaces planning and reporting

Oracle Property Manager Key Value Propositions Ÿ Reduce operating costs by automating lease execution Ÿ Minimize contractual and financial risk with Milestone Management Ÿ Identify cost savings/revenue opportunities with Space Administration capabilities Ÿ Provide data transparency through a single repository of lease activity data

Oracle Property Manager Current Initiatives

Real Estate Daily Business Intelligence Role Oriented Page Key Performance Indicators Management Summaries Links to Drill. Down Reports

CAD Capabilities - Autodesk Ÿ Available NOW! Ÿ Effort to “standardize” integration between Autodesk and E-Business Suite – – White Paper on integration Reusable templates Ÿ Starting with Oracle Property Manager data but will include Oracle Enterprise Asset Management data as well Ÿ Public Views created and supported by Oracle Development

Real-Time CAD Integration

170 Systems Initiative Ÿ 170 Mark. View Document Management and Imaging System™ – The 170 Mark. View Document Management and Imaging System™ enables businesses to capture and manage 100% of their information online, regardless of its original source or format.

170 Systems Initiative Ÿ Proposed Solutions – – Image of lease document available during lease abstraction Intelligent linkage between Reference field and specific place within the lease document Electronic audit package distribution as support for Recovery (CAM) calculations Automation of lease abstraction process

Oracle Property Manager Customers

Oracle Property Manager Customers Ÿ Many Customers Live, Implementing, or Planning Implementations Ÿ Spanning Multiple Countries – – – Australia Canada Denmark France Hong Kong – – – Ireland Japan Korea Kuwait Mexico – – – New Zealand Philippines Qatar South Africa Spain – Commercial Real Estate REIT – – – Taiwan United Arab Emirates United Kingdom United States Venezuela Ÿ Across Many Industries – – Financial Services Healthcare – – – High Tech Manufacturing Public Sector – – Retail/Restaurant Services Telecom

Oracle Property Manager CAB Ÿ Members – – Cross Industry representation Landlord and Tenant representation Ÿ Meetings – – Physical meetings every 6 to 8 months Virtual meetings in between Ÿ Activities – – Enhancement prioritization and voting process Regular correspondence with Product Analysts Beta testing engagements Co-Development opportunities