FM Update and Latest Trends

1. FM Update and Latest Trends Presented By: Phillip Russell, Managing Director, Servus Ireland House 150 New Bond Street London W1S 2TU Tel: 020 7317 4800 Fax: 020 7317 4801 email: phillip.russell@servus.co.uk web: www.servus.co.uk

2. The Story So Far • The Gift of Recession • The Outsourcing Fuel • From Boiler Room to Board Room • So “How was it for you?” Servus

3. The Reality Check • Victims of Our Own Hype • Creating Professional Infrastructure • Pride in Delivering Service • Private Finance Initiative (PFI) Servus

4. Actual Group Return On Capital 26.1% 29.1% 34.7% 34.7% 21.8% 21.8% • + 25% in Group Income (1) • - 25% in Reduced Costs (2) • Combine Both (1) and (2) Above • Equivalent to + 76% in Group Income Adding Value in Recession ABB Ltd Example of Increased Value through Reducing Costs Servus

5. OLD COMPANIES NEW COMPANIES Value Adding (10%) DIRECTLY EMPLOYED STAFF DIRECTLY EMPLOYED STAFF • Progressive Outsourcing • Previous Core Processes • HR / IT / Finance • Maintenance / Cleaning / Security • Stationery / Office Equipment Companies continue to outsource non value adding functions (90%?) SUPPLIERS SUPPLIERS Outsourcing “You Ain’t Seen Nothing Yet” Servus

6. Growth of Technology Utilisation • The Intelligent Help Desk • Condition Based Maintenance • Integrated IT through XML • Beware of the “Doris” Factor Servus

7. The E-Commerce Lingo • FM = MRO • Vertical & Horizontal Markets = Core & Non Core Business • Disintermediation = Total FM • Aggregation = Economies of Scale Servus

8. E-Commerce Threat Or Opportunity • It is still “When” not “If” • Add Value or be Disintermediated • Marketplace Aggregation is a Fallacy • Savings through “Good Specification” and “Process” • Installation Driven by the Facilities Manager Servus

9. The Future is Bright the Future is FM • Embrace Don’t Resist Technology • E-Commerce Route to the Boardroom • Service not Assets is the Future • Only Limitation is Your Ability Servus

10. “ARE YOU UP TO IT?” Servus