active and distressed situations Optimizing the business with innovative solutions in Active Asset Management Restructuring - Closing - Logistics CONact Market Entry Management GmbHZum Feldberg 1-3 / 61389 Schmitten GERMANY ● CONact Italy - Via Ciampino 15 - 00040 Ardea (RM)
Consulting & IT Solution• all information (data, files, pictures,etc) of all properties / entities are Purchase Projectmanaged within the cloud solution management Sales• every transaction is registered Due Diligence Upgrading• Mistakes / errors are getting transparent – easy & fast to Cash Flow Legal discover & correct Sync Advisory FM• Reporting of all roles / levels• Each role is integrated Loans & financing• All members are getting their PMinformation according to their roles / AMrequirements B2B portal• Transmission and exchange of all information is realized through own APIs. Every user gets according his needs / rights access to the cloud www.CashflowSync.com• CFS – CashflowSync is build to manage the whole real estate lifecycleslide: 2 di 32 2 07.2012
Asset-Management , Privatisation, Troubleshooting &RE - Servicing with Real Estate portfolios Controlling & Reporting standard along the whole Exit - procedure Consultance / Advisory Management - Property Mgmt. Evaluation of status quo - Asset Mgmt. Management Prel. studies - Complete documentation & files - Location, - Digitalising Dataroom / sales potential Sales - Analysis of all details Exit - Draft evaluation - Evaluation to deliver - A complete platform for Draft check decision making Improvements Due Diligence (value stabilizing) TroubleshootingApproach varies according to the requests, control & reporting & transparency remains on same high quality level slide: 3 di 32 07.2012
CONACT + GMA: our services in the real estate industry NPL in Real Estate Our services EXIT D D U R E RETAIL P SALES A O F D R T I T L CORPORATE F FORECLOSURE C I O H G L E E I C N O COMMERCIAL SECURITIZATION K C E INTERNAZIONAL - ORGANIZATION - IT - TURNKEY slide: 4 di 32 4 07.2012
Restructuring Real-Estates Investments / projects ?I. Real Estate projects/ investments Can you sell it now ? Is loss acceptable ? Sell ! Project development Market demand Joint venture Repair & Fix Conversion Marketing … ohters ? Finish Rent We are often hired, if project development is needed! 5slide: 5 di 32 07.2012
Our approach creates a win-win situation !Convert loss in profit A competitive Real-Estate company assets RE has Our win- increases value determine the priority win & minimizes1 degree of loss for us solution risks 4 The owner has the best They Company people We2 experience build are motivated integrate 3 concerning a new & help the the asset ! solution restructuring Know-how .. Restructuring companies & real estates is our business ! 6
Tactial 2-step approach – “Monti” approachI. Step Sell the portfolio to a SPV • Compromise with the bank • New image • Management costs • Clustering of portfolios • New marketing for • Tax impact ? investorsII. Step Portfolio Corporate development restructuring!? ? New share- holders .. to have more credibility you can also use the 2 step like Monti approach 7 slide: 7 di 32 07.2012
Example in privatisation:Privatisation of parts of the health sector of Thuringia The challenge Fiduciary settlement of institutions of the health ministry and disposal of its 120 – 150 rehabilitation / health care centers in Thuringia real estate assets. summarize situation, standard, gaps, possibilities, (volume 500 – 800 mill Euros RE develop concept according to value – to add social & health impact) realize some privatisation till contract with Government Results of the project TMF TMSG Bad Liebenstein with 3 Investors Thuringia Ministry Thuringia Ministry of Finance (Municipal / East and West Germany ) of Health standard solution procedure between ministries for getting projects realized TMW model of Exit including use concept Thuringia Ministry for the other centers of Economy Exit after 18 month IT & Reporting Local Architect mangementslide: 8 di 32 Our steps: analyze situation, manage decision process, realize till contracting 07.2012
Example in Government support:Brandenburg - Management report as decision basis for regionalprojects in recreational & rehabilitational areas The challenge Minister conflict: How many municipals / cities should deliver management report for NEXT year Budgeting be supported as recreational cities locial inspection and how much will be a necessary common accepted questionnaire budget to realize it ? common agreed 6 transparent criteria for Report & decision basis Results of the project clear & transparent management Brandenburg report with details for a political Minister of Local decision economy management integrating local management ( mayor rehabilit. Management, local parties ) producing fact based budgets and gaps 7 weeks project IT & Reporting delivering a clear arguments for the cities / yearly budget minicipals not supported proposal Task-forceslide: 9 di 32 Our steps: analyze situation, manage decision process, realize till contracting 07.2012
Advisory on corporate housing :German employees of Telecom and postal services • Some 90.000 housing in Germany – Telecom and Post companies properties • Analysis of efficiency • Economic evaluation • Social impact assessment for employees Our steps: Status analysis and proposal for future modelsslide: 10 di 32 07.2012
Success story : „Milano Via Silva“• Realised a cash-on cash multiple of 1.3xSituation Residential Property 100 sqm 6 different creditors for 630.0000 € Market value 950.000 € In the center of Milan forclosure at 590.000 € Area CityLifeTurnaround Creditors agreement Finding an investor Resolution of legal procedureCapital & Returnspurchase price: € 630.000Capex : € 630.000 Cash Flow ProfileTurnover: € 850.000 Mn €Return (cash multiple): 1.3x 1.0 0.85Cash Flow Profile, Mn € 0.5 M o n l iMonth (in €m) Feb Mar Aprile Totale 0.0Investmentpurchase price (630,000) (630,000) -0.5Repair costs - -0.63 -1.0Total Investment (630,000) - (630,000) Febbraio Marzo AprileSalesTurnover - 850,000 850,000 Source: GMANet Cash Flow (630,000) 850.000 220.000 11
Success story : „Offenbach-Mühleim“• Realised a cash-on cash multiple of 1.7xSituation Residential Properties 6,000 sqm 22 apartments haven‘t been finished Builder didn`t finish building – techical and legal problems for building permissionTurnaround Development & Sales for the unfinished appartements Improvement of the existing structure, legalizing and selling the remaining to a new builderCapital & Returnspurchase price: € 1.6 mCapex : € 0.32m Cash Flow ProfileTurnover: € 3.2 m Mn €Return (cash multiple): 1.7xCash Flow Profile, Mn €Year (in €m) 2005 2006 2007 TotaleInvestmentpurchase price - (1,600,000) - (1,600,000)Repair & Fixes (160,000) (160,000) - (320,000)Total Investment (160,000) (1,760,000) - (1,920,000)SalesTurnover - 2,400,000 850,000 3,250,000Net Cash Flow (160,000) 640,000 850,000 1,330,000 Source: Orgaplan Partners 12
Success story : „Berlin“• Realised a cash-on cash multiple of 1.7xSituation Residential & Office Building 1,500 sqm Main/ key tenant will move out Empty / To let spaceTurnaround Restructuring of the residential part Dealing with the existing tenant (http://www.orgaplan.info Deutsche Bank )Capital & Returnspurchase price : € 1.1 mCapex : € 0.1 m Cash Flow ProfileTurnover: € 2.0 m Mn €Return (cash multiple): 1.7x 2,0 1,65Cash Flow Profile, Mn € 1,5 M o n l iYear (in €m) 2005 2006 2007 Total 1,0Investment 0,5purchase price - (1,050,000) - (1,050,000) 0,0development (50,000) - (50,000) (100,000) -0,05Total Investment (50,000) (1,050,000) (50,000) (1,150,000) -0,5Sales -1,0 -0,73 Source: Orgaplan PartnersTurnover - 320,000 1,700,000 2,020,000 Year 1 Year 2 Year 3Net Cash Flow (50,000) (730,000) 1,650,000 870,000 Source: Orgaplan Partners 13
Success story : „Phillippsthal“• Realised a cash-on cash multiple of 1.5xSituation Residential – 4 family houses Old living standard and repair block 7000 sqmTurnaround Restructuring of the all 23 – 4 family houses Transforming the company complex in a condominium selling to single clients ( retail)Capital & Returnspurchase price: €1.3mCapex: €2.9mTurnover: €6.1mReturn (cash multiple): 1.5x Cash Flow Profile Mn €Cash Flow Profile, Mn €year(in €m) 2005 2006 2007 TotalInvestmentpurchase price - - (1,300,000) (1,300,000)Development (1,000,000) (1,000,000) (900,000) (2,900,000)Total Investment (1,000,000) (1,000,000) (2,200,000) (4,200,000)SalesTurnover 100,000 2,600,000 3,400,000 6,100,000Net Cash Flow (900,000) (1,600,000) 1,200,000 1,900,000 Source: Orgaplan Partners 14
Example in Turnaround:Commercial - Big empty furniture building Situation: 12500 sqm display and sales space No more permission to use it a redevelopment is needed Goals legalization of the building RE-Advisor / Controller redevelopment & Exit to institutional Investors SPV Exit after x Monaten Investor X IT & Reporting Architect Our steps: buy neighborhood land for parking, convert in shopping mall, sell
Our Services concerning Logistics: green moving and closing - Our brand: WELTBUERO Our expertise Controlling & Reporting standard along the whole Exit - procedure Building Define the Gap of - change rooms - add technicalBusiness Milestones equipment • Staff – finding & training Clear Strategy & - finalize buidling Find location • Finalize building • Install technical infrastructure Infrastructure - Location, size • Deliver furniture - IT /logistic /.tecn.. - Staff & infrastructure • Training procedure - Furniture . - Equipment Staff -selecting - Training - Assessment Approach varies according to the requests, Control & reporting & transparency remains on same high quality level
Example of Revitalisationto improve Investor –activities of empty buildings / officesEmpty Car dealership - pavillon: Action Cluster: 2% revitalisation Fast improvement of RE- appearance (ex. Activate show-room and show „life“ property ) Motivated INTERIM-tenant Active regional advertisement Works for : 5 - 10% of assets! (needs partly vacancy-/ abandoned properties) Our steps: occupy the building, revitalise & sell it (auction) !
Example in Pre-Opening Services:just-in-time moving of a huge callcenter overnight incl. furnishing T-Mobile single workplaces => Conversion for Sitel callcenter Friday night from 1 am to 7 am: Unmounting 200 workplaces per weekend + conversion of desks to smaller units On Saturday morning: T-Mobile gets new desks an we move the old ones to Germanies second biggest callcenter service provider Sitel. Saturday + Sunday: Mounting of 200 single desks For 2 open range offices! Our steps: Buy old furniture from T-Mobile, alterate & sell it to Sitel!
Example in Pre-Opening Services: Telecom-company - reorganisation of 1.500 workplaces The Problem approx. 1.500 workplaces in 6 locations with table dimensions of 200 x 100 cm each Goal: => Gain of surface! No interruption in standard workflow! Implementation of the project new electromotive workplaces with table CUSTOMER Transport dimensions of 160 x 80cm each Removing of old workplaces Saturday between 2 a.m. and 7 a.m. Cleaning of the carpet / replacement of Carpet cleaning / defective segments between 5 a.m. and 9 a.m. inhouse replacement Simultaneous assembly of new workplaceslogistic teams Sunday: re-installation and testing of IT Standard Capacity Monday: Business as usual Furniture manufacturer Between 60 – 100 workplaces per night Our steps: Unmounting the old desks + mounting new ones overnight!
Example in Pre-Opening Services:Infrastructure & office – equipment in figures Our teams:Our projects… We have several „core-teams“ Reference project concerning furnishing: consisting of 4-6 experts each. Every core team is able to mount / unmount 350 approx. 1.800 identical workplaces with used desks at 3 different locations workplaces per week + to handle 2 / 3 more unskilled helpers. Our hugest projects for cleanout / According to the amount of workplaces & disposal: the timeline, we adjust the needed amount RTL Group with 2.400 workplaces Unilever headquarter with 1.400 of „core-teams“. workplaces Vodafone with 5.500 workplaces (in 2012) Our approach: small flexible teams combined in large projects
Example and Track record in Moving : Some key - projects 2011 / 2012 Navteq in FFM – 150 offices Frankfurter Buchmesse (Verlag) in FFM - 150 workplaces Capgemini Düsseldorf Nokia Siemens Networks FFM + Darmstadt Manpower FFM - 200 Bueros Sony Milano - Aareal Bank Wiesbaden, Mainz-Kastell + Essen – 500 workplaces - EMEA-cooperation Cinemaxx Hamburg – 300 offices Siemens AG FFM – 380 offices Mobilcom Berlin Zueblin Hamburg – 650 offices Vodafone Düsseldorf - Dec. 2012 incl. refurbishing of 2.300 swivel-chairs for Vodafone internal reuse (subcontractor project management & logistics) Our approach: small flexible teams combined in large projects
Contacts Joerg Kowollik Managing Director Martin Le Borgne Zum Feldberg 1 – 3 Director EMEA - Logistic 61389 Schmitten Germany Zum Feldberg 1 – 3 Tel. +49-6084 – 95 02 00 61389 Schmitten Germany www.conact.de Tel. +49-6084 – 95 02 00 www.orgaplan.info www.weltbuero.de Stefano Lucidi Country Manager Italy Via Ciampino, 15 00040 Ardea (RM) Italy Tel. +39 06 9028 5689 www.conact.de www.orgaplan.infoslide: 22 di 32 07.2012