The Right REIT Reporting SolutionUsing BusinessObjects Planning and Consolidation (BPC)

with Real Estate Investment Trusts (REIT)

January 27, 2010

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Agenda

Introduction

Corporate Overview

Challenges in today’s REIT community

SAP BusinessObjects Planning and Consolidation (BPC)

SAP BPC Live Product Demo

Q&A and Contact Information

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Consulting Firm Advisory ServicesVertical ServicesEnterprise ApplicationsStrategic Technical & Data Services

Founded in 1992Headquartered in Wakefield, MA335 Employees, 238 Consultants *Large North American FootprintFocus on middle and Global 2000 marketPublicly Traded (NASDAQ: EDGW)

Corporate Overview

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Challenges of Doing Business Today

Sarbanes Oxley and other government and regulatory mandates require companies to be accountable for the accuracy of their finances”

Audit costs as part of the compliance process are extremely high

Mandated process changes such as XBRL

Volatile Real Estate and Equity Market

By 2012, 90% of public companies will face mandatory, audited public reporting requirements for financial controls, and 50% will face mandatory non-financial reporting (0.8 probability).” Source: Gartner - 2nd March 2007 -“Audits and Events Drive Governance, Risk and Compliance Spending” by Eidand Caldwell *

One of every ten public companies, whether based in the US or abroad” is having to re-state earnings” Source: CFO Europe.com – “Say Again?”: April 2007

“Global regulations -accentuating critical data, process and execution issues

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SAP BusinessObjects Planning and Consolidation Best in Class

Best in Class

• Industry leading Excel and Microsoft Office Integration• Packaged Business Process Flows• Strong multidimensional capabilities

Ease of Use

• Guided Action Panes• Finance User owned and managed• Unified Planning, Consolidations, and Reporting

Most Advanced

Capabilities

• Automated Variance Analysis• Structured and Unstructured Data• Predictive Analytics

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Unique Needs for REIT Reporting

Managing the complex reporting requirements for Investors, Regulators, and REIT Management

Data sources and inputs scattered throughout the organization

Multiple filings within an organization

Multifaceted ownerships including joint ventures and minority interests

Limited internal resources to oversee all financial reporting needs

Additional statistical reporting requirements including industry specific KPI’s

Complex financial statements and projections

Sample REIT KPI’S

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Customer Success Story

Challenges and Opportunities• Manual, labor intensive financial

reporting.• Replace inefficient spreadsheets with

automated environment for reporting and forecasting that could be managed by the finance organization.

Objectives• Increase data quality and reliability. • Shorten reporting cycles, with minimal

disruption to existing workflows.• Provide robust, flexible, and scalable

platform for launching future REIT’s.

Implementation Highlights• Completed in less than 1 quarter

between reporting periods• Achieved high user engagement and

adoption through the use of conference room pilots.

• Made a material reduction to reporting cycles with minimal IT investment

Why SAPCommon centralized database Automatic consolidation of financial dataRequires minimal IT supportMinimal training requirementsLeverages full functionality of Microsoft® suite of productsSeamless integration of Planning and Reporting

BenefitsRapid payback as it was easy to implement and quickly adopted Consolidated multiple data sources into one environment Increased visibility into REIT operations and reduced time for budget and financial close processes

KBS Capital Advisors Headquarters: Newport Beach, CAIndustry: Real Estate Investment TrustProducts and Services: One of the nation's largest buyers of commercial real estate and structured debt investmentsTransaction Volume: US$16 billionEmployees: 60Web Site: www.kbsrealty.com/

“Prior to implementing BPC, we managed and manually created multiple reports and spreadsheets to meet our financial reporting needs. SAP BPC has enabled us to efficiently and accurately pull data into Microsoft Excel templates from a single database, allowing us to spend less time compiling data and more time utilizing it to manage our business. We look forward to further utilizing the power of SAP BPC and our relationship with Edgewater as we grow and adapt.”

David SnyderChief Financial Officer

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Solutions for Business Performance Optimization

Better Control PerformanceUnderstand how your strategies will be impacted by risk and adjust plans and expectations accordinglyReduce costs and increase working capital by closely monitoring and understanding company spendingIncrease profitability by gaining insight into your best and worst customers, channels and products

Increase Organizational AgilityImprove the quality and speed of decisions by closing your books faster and more accuratelyCreate what-if scenarios and plan versions so you can compare alternatives and act with confidenceUnderstand the impact of changes so you can align operational capacity and support functions with demand

Greater Context for Decision MakingEmpower every stakeholder to communicate, collaborate and execute on a defined plan of action in context and real-time

Strategy ManagementPlanningConsolidationsProfitability and Cost ManagementSpend Analytics

FOCUS FOR TODAY’S PRESENTATION:SAP BusinessObjects Planning and

Consolidation

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SAP BusinessObjects Planning and Consolidation

Most familiar and easiest to useEnables rapid adoption by leveraging existing Microsoft Office tools (e.g. Excel) and web browsers accessing a central databaseFinanced owned and managedReport and input wizard templates

Pre-defined process flowsConfigurable business process flows guide users and drive process consistency

Truly unified solutionSingle, integrated application reduces maintenance, improves data integrity, and simplifies deployment while enabling flexible planning & consolidation functions

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Key Features of SAP Business Objects XBRL Publishing

XBRL taxonomy navigation – Quickly search and filter large, complex taxonomies to find tags relevant for your business data

Mapping – Map taxonomy tags to data using a drag-and-drop mapping environment

Validation – Use comprehensive validation functionality to confirm accuracy and completeness and identify issues

Disclosure inclusion – Link to and import management discussions, disclosures, footnotes, and other narratives created in Microsoft Word to XBRL documents

Taxonomy extension – Easily extend published XBRL taxonomies to include other information

Compliance – Be confident that your XBRL documents comply with the business rules of third-party taxonomies

Business Challenges

Pressure to implement an XBRL publishing solution quickly

Desire for more control and flexibility than XBRL outsourcing offers

Limited in-house resources who can work with complex XBRL syntax directly

Add Screenshot from UBMatrix

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SAP BPC Live Product DemoR

epor

t Distribute plans and analyze variances to drive re-forecasts

Ana

lyze

Consolidate and model multiple scenarios

Col

lect

Collaboratively create plans and forecasts

Com

mun

icat

e

Communicate top down targets, timelines, and guidelines

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Summary

Why Now?

• XBRL compliance regulations go into effect 6/15/11

• Spreadsheets are error prone and require too much maintenance

• Budgeting, Consolidations, and Reporting must be integrated

Why SAP BPC?

• Benefits of Excel without the downside

• Truly maintained by Finance

• Easiest to implement, learn, and maintain

Why Edgewater?

• One of largest implementers of EPM solutions – 800 + deployments

• Extensive and experienced team of EPM consultants

• Enable client success – excellent client references

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Thank You for Joining Us

To schedule a live demonstration, or for more information about Edgewater Technology and our EPM Practice, contact:

Jennifer LyBPC Project Lead714-514-4600jly@edgewater.com

Q & A