AOS STUDLEY OCCUPANCY COST INDEX

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1 AOS STUDLEY OCCUPANCY COST INDEX 2011 THE MEDIAN TOTAL COST PER WORKPLACE PER YEAR BRUSSELS, JUNE 13 TH, 2012

2 Agenda 1 Welcome 2 Who is AOS Studley? 3 The AOS Studley Occupancy Cost Index OCI figures 5 Expectations 6 Questions and answers AOS Studley Occupancy Cost Index AOS Studley

3 Occupancy Cost Index - Welcome AOS Studley Occupancy Cost Index AOS Studley

4 Agenda 1 Welcome 2 Who is AOS Studley? 3 The AOS Studley Occupancy Cost Index OCI figures 5 Expectations 6 Questions and answers AOS Studley Occupancy Cost Index AOS Studley

5 AOS Studley Our Solutions REAL ESTATE SERVICES We search the optimal building and acquire it at the best conditions. WORKPLACE STRATEGY We design an efficient work environment that matches your strategy, activities, culture and values. PROJECT MANAGEMENT We manage the construction or fit out of your new work environment. FACILITY MANAGEMENT CONSULTING We improve the facility services for the building occupiers. AOS Studley Occupancy Cost Index AOS Studley

PROJECT MANAGEMENT We manage the construction or fit out of your new work environment.

6 A global alliance EMEA : 21 Offices 14 countries Stockholm San Francisco Los Angeles USA : 20 Offices Chicago New York Washington Atlanta Houston Miami Hamburg Rotterdam Berlin London Brussels Dusseldorf Frankfurt Prague Warsaw Paris Munich Lausanne Lyon Vienna Milan Madrid Barcelona Barcelona Rome Istanbul Moscow New Delhi Mumbai Casablanca Beirut Bangalore Sao Paulo AOS / Studley offices Subsidiaries AOS / Studley offices Partners Opening AOS Studley offices 2012/2013 Buenos Aires Johannesburg AOS Studley Occupancy Cost Index AOS Studley

Barcelona Barcelona Rome Istanbul Moscow New Delhi Mumbai Casablanca Beirut Bangalore Sao Paulo AOS / Studley offices Subsidiaries AOS /

7 They trust us AOS Studley Occupancy Cost Index AOS Studley

8 Agenda 1 Welcome 2 Who is AOS Studley? 3 The AOS Studley Occupancy Cost Index OCI figures 5 Expectations 6 Question and answers AOS Studley Occupancy Cost Index AOS Studley

9 Definition As our clients are under raising cost-pressure and as housing is the largest cost after salaries and taxes, AOS Studley developed the Occupancy Cost Index Covers all costs related to the building and facility services. Gives clear indications where there is room for improvement. Definition : Occupancy Cost Index One single figure that represents the median total cost per workplace per year. Based on real actual data gathered during benchmark projects, financial audits or cost reduction programs. AOS Studley Occupancy Cost Index AOS Studley

Gives clear indications where there is room for improvement.

10 Why this index? AOS Studley Occupancy Cost Index as an Economic Leveler Macro Economic impact of the AOS Studley Occupancy Cost Index After salaries and taxes, housing is the largest cost for corporate organizations. The economical attractiveness of a country is thus clearly determined by the cost of facilities and their usage. The AOS Studley Occupancy Cost Index gives in one figure an appreciation for this investment parameter and its evolution in time. An important performance indicator for each organization Comparing your own costs with peers, gives organizations an indication of their own efficiency and effectiveness. Companies can become more competitive by optimizing their building and facility costs in order to become best performers in their regions or sectors. AOS Studley Occupancy Cost Index AOS Studley

The economical attractiveness of a country is thus clearly determined by the cost of facilities and their usage.

11 Occupancy Cost Index Composition The Occupancy Cost Index is the median of the sum of ALL facilities related costs: Costs of own personnel. Costs of goods and services. Capital costs. Depreciation costs. Strategic, tactical management and operational support for the facilities and staff Infrastructure (hardware, software, cabling ) and exploitation Buildings, grounds, parking, taxes, insurance, maintenance, changes, energy and water, daily management, interests Facility Management External Facilities ICT Resources & Services Accommodation Off-site events, external accommodation and meeting rooms, transport, Catering, cafetaria, risk management, cleaning, moves, document management, waste treatment AOS Studley Occupancy Cost Index AOS Studley

Strategic, tactical management and operational support for the facilities and staff Infrastructure (hardware, software, cabling ) and exploitation Buildings, grounds, parking, taxes,

12 Agenda 1 Welcome 2 Who is AOS Studley? 3 The AOS Studley Occupancy Cost Index OCI figures 5 Expectations 6 Questions and answers AOS Studley Occupancy Cost Index AOS Studley

13 OCI 2011 AOS Studley Occupancy Cost Index AOS Studley

14 OCI Results for Belgium AOS Studley Occupancy Cost Index AOS Studley

15 A look inside the AOS Studley OCI 1%4% Accommodation % 40% Resources & Services ICT External Facilities 121 Facility Management % TOTAL AOS Studley Occupancy Cost Index AOS Studley

210 External Facilities 121 Facility Management 463 19%

16 Evolution Accommodation Resources & Services ICT External Facilities Facility Management Gezondheidsindex , , AOS Studley Occupancy Cost Index AOS Studley

17 Major reasons for changes Accommodation: -0,94% Quite some organizations reduced their m²s per workplace via optimization and New World of Work concepts. A limited number of new contracts (market with low take up) and renegotiations lowered accommodation cost, but this reduction was smoothened by the indexation of running rents. Less investments lowered the depreciation costs. Resources and Services: -1,40% Further outsourcing of all facility services. Reductions of the available level of services (mainly in cleaning and document management). Outsourcing lowers staff cost with hardly any impact on supplier costs. ICT: +2,10% Investments for hardware renovation and (data) mobility and security (e.g. cloud computing). External Facilities: -10,86% Focus on cost (and eventual staff reduction) intensifies usage of (internal) available premises. Facility Management: -5,52% Outsourcing and supplier consolidation allows downsizing of internal RE&FM management team. AOS Studley Occupancy Cost Index AOS Studley

Less investments lowered the depreciation costs. Resources and Services: -1,40% Further outsourcing of all facility services.

18 Agenda 1 Welcome 2 Who is AOS Studley? 3 The AOS Studley Occupancy Cost Index OCI figures 5 Expectations 6 Questions and answers AOS Studley Occupancy Cost Index AOS Studley

19 Expectations for the (near) future Small decrease of accommodation cost expected. The low demand (take up) and important vacancy will keep the market under pressure. The rental conditions in new contracts and renegotiations will remain attractive for tenants. Rent indexation over 2012 will probably be below The number of workplaces and total occupied surface will reduce, but higher standards. Energy costs won t go up any further. AOS Studley Occupancy Cost Index AOS Studley

The rental conditions in new contracts and renegotiations will remain attractive for tenants.

20 Expectations for the (near) future Facility costs stable. Search for cost optimization, efficiency improvement and synergies remains priority. Short term linear cost reductions and frozen periods for investments. Emerging medium/long term perspective when business case demonstrates sustainable improvements. Shortage of technical, cleaning and catering staff may raise (external) FM costs. ICT investments primarily focus on end user computing. Demand for mobility, flexibility and security shift the way organizations think about their technology. Increased investments for unified communications and collaboration tools. AOS Studley Occupancy Cost Index AOS Studley

Shortage of technical, cleaning and catering staff may raise (external) FM costs. ICT investments primarily focus on end user computing.

21 Agenda 1 Welcome 2 Who is AOS Studley? 3 The AOS Studley Occupancy Cost Index OCI figures 5 Expectations 6 Questions and answers AOS Studley Occupancy Cost Index AOS Studley

22 Thank you Questions & Answers AOS Studley Occupancy Cost Index AOS Studley

23 Contacts Jan Lecompte MRICS Managing Director AOS Studley Avenue Charles Schallerlaan Bruxelles Tel: Fax: Jeroen Govers FRICS Director Real Estate Services [email protected] Patrick Waûters Director Facility Management Services [email protected] AOS Studley Occupancy Cost Index AOS Studley

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