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.” Property Manager Development has received approval from Gartner Inc on 6/24/2003 to use the referenced Gartner material in this presentation only. Other uses of this material MUST receive written approval from Gartner. Please work with Analyst Relations for all quote approval requests. Gartner, Drive Value Through Workplace Change, Michael Bell, 16-January-2003 1 38 2

Oracle Real Estate Management 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 Tenants May sublease acting as landlord Segmented by industry Building Owners Buy and sell properties May outsource management of properties Developers Construct from ground up May manage or outsource 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 Brokers Facilitate real estate transactions between buyers and sellers

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

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

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

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

The Oracle Real Estate Management Solution Footprint

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

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

Oracle Real Estate Management Financials Oracle Financials Oracle iReceivables Oracle Advanced Collections Oracle Financial and Sales Analyzer Oracle Internet Expenses Maintenance Management Oracle Enterprise Asset Management Projects Oracle Projects Oracle Project Billing Oracle Project Collaboration Manufacturing Oracle Discrete Manufacturing Procurement Oracle Purchasing Oracle iProcurement Oracle Sourcing Oracle iSupplier Portal Sales Oracle Sales Online Marketing Oracle Marketing Service Oracle iSupport Oracle TeleService Oracle Field Service

Solutions by Perspective - Landlord Financials Oracle Financials Oracle iReceivables Oracle Advanced Collections Oracle Financial and Sales Analyzer Oracle Internet Expenses Maintenance Management Oracle Enterprise Asset Management Projects Oracle Projects Oracle Project Billing Oracle Project Collaboration Manufacturing Oracle Discrete Manufacturing Procurement Oracle Purchasing Oracle iProcurement Oracle Sourcing Oracle iSupplier Portal Sales Oracle Sales Online Marketing Oracle Marketing Service Oracle iSupport Oracle TeleService Oracle Field Service

Solutions by Perspective – Tenant Financials Oracle Financials Oracle iReceivables Oracle Advanced Collections Oracle Financial and Sales Analyzer Oracle Internet Expenses Maintenance Management Oracle Enterprise Asset Management Projects Oracle Projects Oracle Project Billing Oracle Project Collaboration Manufacturing Oracle Discrete Manufacturing Procurement Oracle Purchasing Oracle iProcurement Oracle Sourcing Oracle iSupplier Portal Sales Oracle Sales Online Marketing Oracle Marketing Service Oracle iSupport Oracle TeleService Oracle Field Service

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

Site Selection and Acquisition Oracle Products Site Selection Planning next store opening or office opening or relocation Intensive data analysis 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 Property brochures Websites Manage Opportunities Track progress of deal Share among team members Virtual Collaboration Share documents and drawings Version track living documents Build Collateral Track Opportunities Collect Cost Market Negotiate Execute Market Property Lease spaces or entire properties Leverage contacts Opportunity Costs Site inspection Travel costs Close the Deal 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 Corporate and Retail/Franchise Leasehold improvements Refurbishments Store build outs Commercial Real Estate Building construction Oracle Financials Oracle Projects Oracle Project Collaboration Oracle iProcurement Oracle Purchasing Oracle Sourcing Oracle iSupplier Portal Oracle Discrete (Project) Manufacturing

Operations and Facilities Management Oracle Products Operations Financial management Lease execution Space management Facilities Management Facilities request execution Preventative maintenance Oracle Financials Oracle Property Manager Oracle iReceivables Oracle Enterprise Asset Management Oracle Projects Oracle Project Collaboration Oracle Purchasing Oracle iProcurement Oracle iSupplier Portal Oracle iSupport

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

Facilities Management Solution Enterprise Asset Management Self-Service Work Request Extension of eAM Customer Relationship Management Oracle iSupport Oracle TeleService Oracle Field Service

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

Oracle Real Estate Management Financials Oracle Financials Oracle iReceivables Oracle Advanced Collections Oracle Financial and Sales Analyzer Oracle Internet Expenses Maintenance Management Oracle Enterprise Asset Management Projects Oracle Projects Oracle Project Billing Oracle Project Collaboration Manufacturing Oracle Discrete Manufacturing Procurement Oracle Purchasing Oracle iProcurement Oracle Sourcing Oracle iSupplier Portal Sales Oracle Sales Online Marketing Oracle Marketing Service Oracle iSupport Oracle TeleService Oracle Field Service

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

Oracle Property Manager Functional Update

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

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

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

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

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

Oracle Property Manager Key Value Propositions Reduce operating costs by automating lease execution Minimize contractual and financial risk with Milestone Management Identify cost savings/revenue opportunities with Space Administration capabilities 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 Available NOW! Effort to “standardize” integration between Autodesk and E-Business Suite White Paper on integration Reusable templates Starting with Oracle Property Manager data but will include Oracle Enterprise Asset Management data as well Public Views created and supported by Oracle Development

Real-Time CAD Integration

170 Systems Initiative 170 MarkView Document Management and Imaging System™ The 170 MarkView 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 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 Many Customers Live, Implementing, or Planning Implementations Spanning Multiple Countries Australia Canada Denmark France Hong Kong Ireland Japan Korea Kuwait Mexico New Zealand Philippines Qatar South Africa Spain Taiwan United Arab Emirates United Kingdom United States Venezuela Across Many Industries Financial Services Healthcare High Tech Manufacturing Public Sector Commercial Real Estate REIT Retail/Restaurant Services Telecom

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