A brief presentation of the strategy of Officenter to combine 'local entrepreneurship/funding' with a professional manamgement in order to create a performant business center group.

1. Customer satisfaction is our only focus
Community building by acquiring business
centres buildings
The strategy of OFFICENTER
Christa Jouck en Koen Batsleer
www.officenter.be Page 1

2. STRUCTURE OF THE PRESENTATION
I. The Origin
II. Expansion mode : Growing the business
III. Product and customers
IV. Financing structure
V. The business model revisited
VI. Wrap-Up
www.officenter.be Page 2

3. I. THE ORIGIN
ACQUISITION OF OFFICENTER HASSELT, april 2010
 OFFICENTER was founded in 1980 as ‘business-center’ van
4.700 m², leased with ‘services’.
 2000 – 2008 : stable lease-income, but increasing costs 
decreasing EBITDA yearly
 A main customer occupying 40 % of the surface left in 2010
 owners wanted to ‘stop’ business/sell building
 Acquired in 2010 with 10
‘friends/entrepreneurs with the aim of
developing Officenter :
 From a ‘lessor’ to a ‘service company
 Not renting m² but ‘workstations’
 With an additional services for flex-offices
and meeting rooms
The acquisition of OFFICENTER HASSELT was a profitable
project of Christa and Koen, supported by some friends.
www.officenter.be Page 3

4. I. THE ORIGIN
ACQUISITION OF OFFICENTER HASSELT, 2010 - 2013
 Transfering ‘OFFICENTER’ from a lease-company to a
business center was dons succesvully in 2010 -11
 Turrnover and EBITDA almost doubled after a transition
period of appr. 2 years.
 Officenter Hasselt is actually the host of
more then 150 companies in Hasselt
 Were we have created a real community :
 Monthly meet and Greet
 Sporting event
 Business inspiration event
With OFFICENTER HASSELT, we proved that business centers
have a potential market in ‘regional cities’
www.officenter.be Page 4

5. II. EXPANSION MODE : GROWING THE BUSINESS
ACQUISITION OF BC BERKENHOF  OFC TURNHOUT, SEPT 2011
 BERKENHOF was built in 1995 as a 2.600 m² ‘business center’,
but it was > 65 % empty and the owner wanted to stop the
business.
 We have acquired this building, and have transformed it ::
 From a ‘lessor’ to a ‘service company
 Not renting m² but ‘workstations’
 With an additional services for flex-offices and meeting rooms
 Officenter Turnhout has realised our expectations : :
 We had an opening with more then 650 entrepreneurs
present in 2011
 Less then 24 monthis, the building was fully ocupied with
more then 135 workstations.
 Actually, OFFICENTER TURNHOUT is the home for
more then 50 companies and is anchored in the local
entrepreneurship community
With the acquisition of OFFICENTER in TURNHOUT we have proven
that ‘our ‘model’ could be multiplied to other regional cities in
Flanders.
www.officenter.be Page 5

6. II. EXPANSION MODE : GROWING THE BUSINESS
ACQUISITION OF BEDRIJVENCENTRUM RUPELSTREEK  OFC A12, 2012
 We have acquired this building in 2012 and after renovation we have
opened this 3th OFFICENTER together with 750 entrepreneurs and
Minister –President Kris Peeters.
‘AFTER’
 Qitnhin 18 monthis, we have increased the occupation to 100
%, by creating our local ‘OFFICENTER COMMUNITY’.
 Acutally, OFFICENTER A12 is the home base for more then 65
companies in this region and is used very frequently by our
other OFFICENTER customers as a ‘meeting place’.
 Office-building ‘Bedrijvencentrum Rupelstreek’
 Traditional B.C., 1.850 m², ca. 40 offices
 Owned by Eandis, KBC and the local government
 Occupation in 2011 < 50 %, <. 25 people, loss making.
‘BEFORE’
With Officenter A12 we have demonstrated that our‘business
model’ is different from the ‘traditional’ “bedrijvencentra”.
www.officenter.be Page 6

7. II. EXPANSION MODE : GROWING THE BUSINESS
2013 : THE CREATION OF OFFICENTER MAASTRICHT
 In 2013 have realised our 4de OFFICENTER in
MAASTRICHT, crossing the border.
 Together wit 15 entrepreneurs, we aquired an empty
office building, with an optimal location to create a
performant local business centre
 After one year, the occupation rate (35-40
%) issomewhat lower then expected, but the
local investors are convinced that this
building will become a performant local
business centre the following years.
 .
With Officenter Maastricht we demonstrate that our‘business
model’ is not limited to the Belgian territory.
www.officenter.be Page 7

8. II. EXPANSION MODE : GROWING THE BUSINESS
OFFICENTER LEUVEN
 We need min. 5
centers to have an
optimal scale
 Can be managed by
1 person (Christa),
supported by 0.3
CFO (Koen)
 Leuven is the logical
5th location for an
OFFICENTER
 Agreed upon in
December 2013,
acquisition March
2014, opened May
2014
Has-selt
Turn
hout
Leu-ven
Maas
tricht
www.officenter.be Page 8
Ant-werp

9. III. PRODUCT AND CUSTOMERS
Where do we make the difference ?
Christa
1. Mgt. Experience of
business centers
2. B2C experience
3. Franchising
experience
Koen
1. Focus on ‘savings’
on office costs
2. Finpower-revenue
3. Progressive user
No strong
commercial
team needed
‘only on
demand offers’
www.officenter.be Page 9
(NWW)
Investors
1. Friends
2. Entrepreneurs
long term savings
Standardised
products
Pricing based on
100 % occupation
Minimal cost of
management
Community-oriented
Long term ‘value’
focus, no short
term profit-orientation
Price ‘cost plus’,
20 % lower then:
1. Referencepoint
customers
(renting
appartement)
2. Competition
“Alll in = alll in”
Price/Quality
acceptable for
SME-er ‘staying
forever in
Officenter
Customer
loyaty 2-5 x
higher then
market
average

10. IV. FINANCING STRUCTURE
Differentiator 1 : Buying the Building
Traditional ‘Corporate’ Model :
 High investment for start-up of B.C. :
 Investment up front : furniture, ICT,
marketing …
 Start-up-losses (before achieving target
capacity utilisation)
 For Regus : appr. 1 Mio €/new centre !
 So, acquisition of building is too much 
leasing of building is ‘logic’ in this sector
 This also minimizes the ‘capital needed’ if
you want to grow fast
Regus has doubled in size in 2013 vs. 2010
‘Small Enterprise ‘Approach :
 Yield demanded for Offices app. 8-
9 % of ‘buying cost’ (decrease in
market value of office buildings)
 Yield is substantially higher than
cost of bank financing
 Traditional ‘office buildings’ are not
suited for business centre use
 Structural changes in the buildings
must be done by ‘owners’
 Acquisition-cost of building for
Officenter is less then 50 % of total
investment pro center !
With OFFICENTER, we wanted to buy the buildings,
but we did not have the financial means …
www.officenter.be Page 10

11. IV. FINANCING STRUCTURE
Differentiator 2 : Subordinated Loan à 7 %
2 ‘Key Elements’ of the Market Today :
 Leverage is ‘inversely’ related to size :
 ‘Jan met de pet’ can finance more then 80
% of his house
 A SME finances 70-80 % of its investment
 Many multinationals aim at a leverage of
less then 50 %
 Yield of ‘Offices’ is exceptionally high :
 Houses, apartments : 2-4 %
 Retail : 5-6 %
 Offices : 7-9 %
 An ‘entrepreneur’ finds an interest rate of 7
% ‘high’.
Assets Liabilities
Equity
Building with Subordinated loan
yield 7-9% 7%
Bank financing
Interest 4%
Looking for ‘private investors’ who see this as ‘their building’
will create a intrinsic ‘higher’ return
www.officenter.be Page 11

12. IV. FINANCING STRUCTURE
Differentiator 3 : Local majority
Total financing need : 2.550.000
Officenter
Local
Investorss per 5 % per 4 %
40% 60% 5,0% 4,0%
14% Equity 350.000 140.000 210.000 17.500 14.000
16% Subordinated Loan 420.000 420.000 35.000 28.000
70% Bank financing 1.785.000 1.785.000
2.555.000
Pro investor :
Equity : 5% 17.500 Investors must be :
==> pro rate 95 m² office space 1. located in the business centre
Subordinated loan : 35.000 2. or have a broad network in the region
==> Intrest pro year : 7% 2.450
or, on global investment : 4,7% 52.500
 75 % bank financing : feasible if Officenter Holding gives ‘support’ (cash deficiency clause to
addt. Mortgage)
 > 25 % ‘own funds’ :
 Officenter Holding : 40 %, of equity, only 5 % of ‘total investment’
 Locale entrepreneurs : 60 %, of equity + 2 x this amount in loan
 Direct return in ‘intrest-renumeration’ of 4,5 %, acceptable for entrepreneurs
 Long term value creation by repayment of bank financing over 20 years.
www.officenter.be Page 12

13. V. FUNDAMENTAL ISSUE
The paradigm of the actual financial market ‘long term returns’
500%
450%
400%
350%
300%
250%
200%
150%
100%
50%
500%
450%
400%
350%
300%
250%
200%
150%
100%
50%
1980 Traditional model' 2013 lower 'intrinsic' profitability of companies 2013 lower 'intrinsic' profitability of companies
Profitability of companies : 6 % Profitability of companies : 6 ==> 5 % Profitability of companies : 6 ==> 5 %
Intermediation margin of financial market : 2 % Intermediation margin : 2 ==> 2,5 %
==> Capital market 'captures' 50 % of value created ==> capital market captures > 2/3th of the profitability
but, pension is OK since it is 3 x its face value pension captures < 2,5 % = inflation rate …
www.officenter.be Page 13
700%
600%
500%
400%
300%
200%
100%
0%
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Basis
4%
6%
0%
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Basis
2,5%
5%
0%
1 3 5 7 9 11131517192123252729
Basis
3%
5%
The ‘financial’ market will oblige people to look for other
(direct ?) long-term investments then pension funds.

14. VI. CONCLUSIONS
 Operational excellence is the fundamental in our/every business model
 Our only focus is customer satisfaction … no ‘dividends’ will be distributed.
 Retention rate from 50 % to > 90 %
 We have our ‘advantages of scale’ with 5 business centers
 Is optimal, growing will mean more then 1.3 FTE overhead ….
 ? What is the mean of our sector ?
 With our ‘unique’ financing structure, we combine different aspects :
 We aim at ‘7 % equity return’, which is :
 The double of the return of pension funds in their long term
 Creates with the low intrest-rates a cost of capital of 4-5 %, lower then the market-rate in our sector (6-9 %)
 We (Officenter Management) ‘control’ the ownership of all these buildings
 We are co-investors, risking our own money in this project (all our personal funds are engaged in this project)
 We take the risk, but have a main upside potential if our business in succesfull
 We ‘anchor’ a local investor team which is partially occupying the building
The combination of ‘operational excellence’ and ‘local
ownership/funding’ should create the optimal risk/return equilibrium
www.officenter.be Page 14