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 [email protected]
Q & A