Cassidy Turley Real Estate Solutions_Belden 9-3

Comfor table. Efficient. Productive.

Facilities Management Solutions for Your Portfolio

September 10, 2013

Cassidy Turley 7700 Forsyth Blvd., 9th Floor St. Louis, MO 63105 314-574-7062

Road Map for Success

Attendees

J Glasgow Managing Director, Principal Facility Management Services 314.574.7062 J.Glasgow@cassidyturley.com

Tim Michel Senior Managing Director, Principal Property Management Services 317.639.0415 Tim.Michel@cassidyturley.com

Andrew Martin Senior Vice President, Principal Brokerage Services 317.639.0523 Andrew.Martin@cassidyturley.com

Belden + Cassidy Turley

Together we send the right signals about your real estate

Agenda

Operational & Financial Reporting

Belden’s Real Estate Portfolio

Where Do We Find Savings?

Initial Team Outline

Portfolio Lease Administration Solutions

Creating Operational Value

Case Studies

Managing Your Closed Facilities

Driving Best In Class Solutions

Managing the Workflow

Technology to Measure Success

2 | Cassidy Turley

Belden’s Real Estate Portfolio

865,096 warehouse SF

Portfolio Snapshot

34,161 closed SF

6%

42%

738,399

Leased

Vacant

office SF

94%

58%

Occupied

Owned

1,818,709 manufacturing SF

N o r t h A m e r i c a

W e s t e r n A s i a

S o u t h A m e r i c a

E u r o p e

A s i a

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Initial Team Outline

Key Design Features 1. Integrated Team 2. Work Order Deployment System 3. National Vendor Management and Procurement Program

Executive Leadership

Key Benefits for Belden 1. Improved Quality of Service and Volume 2. Enhanced Responsiveness 3. Reduced Expenses

Cheri Shepherd, Managing Director J Glasgow, Managing Director Andrew Martin, Senior Vice President

Account Manager

Portfolio Lease Administration Team

Facility Management Service Center

Establishing a SINGLE POINT OF CONTACT for Belden is key to success

23,000 Locations

74,000 Work Orders Annually

$3.5 Billion Spend Managed

316,000 Invoices Processed (2012)

23,000 Client Locations

$1 Billion Invoices Paid

400 Million Total Square Feet Managed

$.10 - $.20 Per Square Foot Average Savings

4 | Cassidy Turley

Portfolio Lease Administration Solutions

Success Story: MeadWestvaco

Reduced costs Increased accountability Improved cost controls

Real Estate Type: Office, Lab, Industrial Portfolio Description: 27M SF on six continents

Cassidy Turley Services: Strategic Planning Transaction Management Facilities Management Lease Administration Site Selection

Accurate, real-time data to support informed decision making Elimination of missed opportunities

Results: • A comprehensive Strategic Plan developed by Cassidy Turley resulted in annual savings opportunities of $8.48M • First-year total leasehold savings of $600,000 • $750,000 in CAPEX cost avoidance through a short-term sale leaseback • $4.25M in cash proceeds from the sale of a discontinued asset • Approximately $200,000 saved through innovative vendor management and maintenance strategies and utility programs

Improved consistency across portfolio

Improved alignment of portfolio with business objectives

Portfolio Lease Administration & Audit Services

Lease Administration

Payables Management

Accounting & Financial Reporting

Lease Audit & Reconciliation

Asset Tracking

CONTRACT MANAGEMENT

• Invoice Review • CAM Reconciliation Audits • Portfolio Optimization MONEY MANAGEMENT

CONTRACT COMPLIANCE

Cassidy Turley manages more than 24,700 leases , producing average annualized savings of $6.34 million

• Abstracting • Document Review • Imaging • Payment Processing • Critical Dates • Security Deposit Tracking/ Collections Reporting

• Auditing • Estoppel and SNDA Review • W-9 Compliance • Process Development • Certificate of Insurance Processing

•• Performance Metrics •• Dashboard Executive Summary of Portfolio

•• Enhanced Reporting Capabilities •• Savings/Cost Avoidance

•• Centralized Payment Processing Platform •• Streamlined Processes

•• SSAE No. 16 Compliant •• Secure, Customizable Technology; 24/7 Access

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Creating Operational Value

GENERIC GRAPHIC WITHOUT HANES and TRAVELGUARD

Security/Building Access

Waste & Recycling

Saved more than 10% managing services pertaining to security gates for corporate and franchised locations

Saved 13% on monthly waste handling charges

Roof & Structure

Projects & Construction

Reduced cost of roof replacement by up to 20%

Reduced architectural and engineering related expenses by more than 40% per project

Environmental Health & Safety Saved 20% through leveraging preferred vendor of Cassidy Turley to provide life safety services

Furniture & Equipment Saved $15,000 per store on average in capital expenditures associated with equipment

Grounds Management

Negotiated the landlord to pay $18,000 for parking lot repairs that were tenant responsibilities within the lease

Utilities Management

Reduced volume of hot/cold calls by 70% with upgraded automatic temperature controls

Energy Efficiency

Facility Administration

Repairs & Maintenance

Created 17% in annual savings as a result of an energy-efficient lighting upgrade

Saved 25% in lighting product costs through Cassidy Turley’s leverage with a preferred vendor

10% annual savings supporting more than 6,000 retail locations

6 | Cassidy Turley

Managing Your Closed Facilities

Inspect facilities regularly, and

Facility Services- Idle Facility Checklist G neral InspectionChecklist

Building: InspectionCompletedBy: Date:

ensure the building is maintained and secure

Thepurposeof thispacket is tomanage the IdleFacility reviewprocess forFacility Servicesassignments. Thesedocumentsaremeant to foster furtherdiscussionon any "red flag" issues that the team isawareof,andwarrantsadeeper investigation by theexperiencedCassidyTurleyAssessmentTeamoranyof theirassociated vendor-partners. The followingwillassist inguiding theFacilityServicesBest PracticesTeam in exceptionalservicedelivery toourclients. InteriorComponents Good Fair

Comments

Poor

N/A

Restrooms CommonArea,Painting,WallCovering Carpet,Floor covering EntryDoors,Mats,Lighting Lobby,CommonAreaLighting CeilingTiles

Closed Property Inspection

BuildingAddress City,State&Zip SquareFeet

GeneralFacility Issues Appearance Wayfinding /Signage GeneralClutter Temperature AirQuality Noise Lighting

Comments

Good Fair

Poor

N/A

Manage repairs, maintenance and utility services, leveraging our purchasing power and vendor relationships to reduce costs

Leased/OwnedProperty? TypeofLease

EstimatedSurvey CompletionDate

FoodService

Comments

Good Fair

Poor

N/A

Appearance GeneralClutter HealthDepartmentRating Flooring (vinyl, ceramic, carpet,multiple) AirQuality Counters Lighting WasteReceptacles

LastUpdated

3/6/2012

ExteriorComponents BuildingSignage PostalAddress ExteriorAppearance Windows Landscaping Exterior Lighting Walks/PublicGrounds Expansion Joints,Caulking PavingandParkingArea Flags

Comments

Good Fair

Poor

N/A

Our goal is to preserve asset value , mitigate risk and reduce the overall costs of maintaining your closed facilities

Mitigate Risk Reduce Costs Preserve Asset Value

FOR SALE OR LEASE

Provide disposition services, including relationship building, marketing, pricing, and incentive review

Coordinate all aspects of closing facilities, from removing equipment and other items to clean up of the whole facility

UnoccupiedFacility ProceduresManual

CriticalFacility Information

Idle Facility Management Procedures Manual

BuildingOwner BuildingAddress ApproximateSquareFeet CaretakersName

Shut Down Procedures

CaretakersHomePhone CaretakersCellPhone CaretakersPager CaretakersEmailAddress SecurityCompany SecurityCompany’sPhone HowtoContactOfficeronDuty CellPhone Pager

DECOMMISSIONING SERVICES

EmergencyPhoneNumbers

PoliceEmergency: 911 or PoliceNon-EmergencyPhoneNumber FireDepartmentEmergency: 911 or FireDepartmentNon-EmergencyPhoneNumber

Prepared by: Cassidy Turley 7700 ForsythBoulevard9th Floor St. Louis,MO63105 314.574.7062

1

©CassidyTurley2012

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Technology to Measure Success

Supporting Operational Improvement

Monitoring Service Delivery Satisfaction

Enabling Self-Service & Transparency

FEATURES

BENEFITS

Fits existing processes and best practices Transparency in service delivery Identify and remedy issues before they become problems Iteratively improve service delivery over time Greater productivity, better data for decision-making

Configurable workflows and escalations Self-service employee portal Service delivery satisfaction assessment Performance reporting

Mobile enabled

8 | Cassidy Turley

Operational & Financial Reporting

Sample Reports

September Services Summary

WHAT IS INVOLVED IN REPORTING?

RealEstatePortfolio

Value toFee

FinancialPerformance

Value toFee TTM-$2.55:1

Expenses

H/Lvs.

PortfolioBreakdown SquareFootage

0 20 40 60 80

Actual YTD $1,636,253 ($42,884) ($109,801) ($687,545) 2012OPC 2011Actual

September

9,424,422

10,000,000

7,704,712

IdleFacilities

5,000,000

Thousands

1,148,987

Facility

ExpectedExit SeptemberExpenses

0

Retail

Non-Retail

Owned

IdleW-S

3/31/2013 $62,657

Jul-12

Jan-12

Jun-12

Oct-11

Apr-12

Feb-12

Sep-12

Dec-11

Aug-12

Nov-11

Mar-12

May-12

Value

Fee

Retail

Non-Retail

Owned

*Calculatedas cost savingsdividedbymanagement fee

Cost Savings Initiatives

Occupancy&SpacePlanning

Maintenance

Projects

MaintenanceHours %byLocation

TotalOccupancy

Provided setupand support forUnitedWayproduct sale

HQ

90% 77% 89% 65%

Vendor

Location

Description

Savings/Avoidance Amount

23%

HQ,CC,R&D

AssistedwithcoordinationofEmployeeAppreciationCelebration

Satellite 11%

Value to Fee

RealEstateTaxAppeals

$21,789 $21,789 $8,110

Measuring Performance

NY

County

Multiple RETaxappeal

Avoidance

B,M& LA

ProvideA/VsupportandassistedwithBoardMeeting inKansas

Maintenance

R&D Eliminated1mtnceTech@Weeks

PlannedReduction $3,500

$- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000

R&D 18%

77%

Mounted transformer,wiredpumps fordryerexhaustvs.vendor Replacedbrokencableongolf cart for securityvs.vendor Cost savings from installingprojector vs.vendor Replaced sinkdrain in4Abreakroom vs.plumber Rewired receptacle forWellness Centervs.electrician Setupanduseof inhouseA/V equipment forHungerGamesevent Randatacable forsecurity camerasvs. securityvendor

Maintenance

HQ

Avoidance

$155

Assistedwith setupand support forUnitedWayevent

HQ 62%

Occupied Unoccupied

Maintenance

HQ

Avoidance

$30

CallCenter&R&Doffice renovationprojectunderway

CallCenter 5%

OfficePopulation2,079 Therewere9movesduringthemonth

Maintenance

CC

Avoidance

$1,450

BTHVAC installednewpumps /pans for thedryerexhaustduct

Maintenance

HQ

Avoidance

$175

YTDchurn rateof6.96%

Maintenance completed821workorders inSeptember 67%ofworkorders completedwere forHQ Theworkorderclosingratio forSeptember is100%

89%ofSeptembermoveswere internal toHQ

Completed transitionofNYoffices tonewHVACcompany

Maintenance

HQ

Avoidance

$180

Tracking Goals

Avoidance

$1,920

Maintenance

HQ

Security&Safety

Imaging

Mail

Maintenance

R&D

Avoidance

$700

157badges issued thismonth,monthly2012average is129 505badgesmodified thismonth,monthly2012average is886 0 IXO Incidents reported,monthly2012average is54 Fleet Thereare currently363vehicles,1 forkliftand1pieceof

Scanned37,925pages forCustomerService,HumanResources,

Totalpostageusage forHQ&R&Dwas$9,395

InvoiceDisputes

$470

andAccountsPayableduringthemonth

Achieved$494ofsavingsbysendingall firstclassmailpresort Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12

Disposal

CC

Disputedcharges

Savings

$70

Caughtbillingerror forcopierpaper order

PaperCo

R&D

Savings

$400

FitnessCenter

Amenities

Value

MgtFee

VendorManagement

$21,338

TheFitnessCenterhad1,285participants for themonth;YTD

InSeptember13%ofemployees atebreakfastand17%ate

Savings forpurchasingand replacing exit signbatteries insteadof landlord Disputed6%price increaseoncontract work

LLD

NY

Savings

$2,600

heavymachinery in theFleet

Avg is1,679

lunchonsiteat the café

Key Performance Indicators Service Level Agreements

SummitFitnessoffered19group fitness classes

OnsiteClothingCarehad110 customers and$2,740 in sales

Fire Safety

HQ

Avoidance

$847

Elevator Janitorial

HQ

Savingsachievedby switchingvendors Savings

$415

•September–$2.83:1 •YTD–$2.69:1

R&D Savingsachievedbyaligning service Savings

$1,698

Value to Fee

Savingsachievedby reducingcarpet cleaning scope Savingsachievedbyeliminating Idle side sweeping Cancelledbi-monthly rug service in favorofutilizingownedmats Monthly savings from switchingcarpet cleaningvendors

Janitorial

HQ

PlannedReduction $539

Janitorial

R&D

PlannedReduction $472

Janitorial

R&D

Savings

$183

Janitorial

HQ

Savings

$2,268

Monthly savings from switching landscapingvendors Monthly savings from switching janitorial vendors

Landscaping

R&D

Savings

$1,990

•SeptemberCostSavings: $52,201 •VendorManagement:$21,338

September Initiatives

Janitorial

R&D

Savings

$2,495

Janitorial

Multiple Cancelled Interiorplants

PlannedReduction $602 PlannedReduction $3,118

Landscaping

HQ

Reduced landscaping scope

ClosedWeeksaccountandaddedML toOS toavoid$5service feeweekly

Uniform

R&D

Avoidance

$20

FoodService FoodService

Multiple Reducedcoffee service scope

PlannedReduction $2,362

18% Year toDate

Multiple Eliminatednapkins

Savings Savings Savings Savings Savings

$394

22%

Security Postage Postage Furniture

HQ

Negotiatedcontract rate

$6

•September Savings -$14,342 •September Avoidance -$27,266 •September PlannedReductions -$10,593 60%

NY -11 Removedunusedpostagemachine NY-7 Utilized smallerpostagemachine Bentonville Negotiatedpricingwithvendor

$162

Benchmarking

$95 $15

Distribution

Cost savings from selectinga less expensive vendor forservice

Rental

HQ

Savings

$1,014

6

Fire Safety

NY

Disputed invoice charges

Savings Savings

$43

MailServices

$494

Financials

2012 September Facilities

000's

H / (L) vs.

H / (L) vs.

H / (L) vs.

YTD Actual

QTD Actual

OPC

2011

Actual

OPC

2011

OPC

2011

NY -34Showroom

90 $ $ 91 $ 57 $

(4) (5) (0)

$

(5) (0) (1) (1) (7)

264 $

$

(23)

$

(37)

803 $

$

(52) (22)

$

(71)

Maintenance

NY-MadisonShowroom Bentonville&Minneapolis

286 171

(0) (2) (0)

12

825 511

23

(1) (7)

(8)

(9)

L.A.Office

8 $

0

25

76

4

14

247 $

$

(9)

$

746 $

$

(25)

$

(33)

2,215 $

$

(78)

$

(42)

SellingFacilities

Work Order Comparison

Top10WorkOrderTypes ThisMonth's

Avg.CompletionTime (Minutes)

HQ DC

801 $

126

74

2,478

300

62

6,841

4

(125) (641)

WorkOrders ThisMonth YTD2012 2011

1,000 1,200 1,400 1,600

$

-

-

(14)

-

-

(90)

-

-

Electrical

33 97 78 71 99 38 42

46

40 24 22 35 24 59 42 44 37 80

36

R&D

167 $

3

1

517

13

12

1,470

(27)

(10)

Events

118

NA

Furniture

37 33 23 88 33 43 39 85

47 48 31 54 48 42

DTCSupport

14 $

14

14

45

45

45

45

45

45

InteriorRepairs&Maint.

0 200 400 600 800

2010 2011 2012

Lighting

MoveManagement

Worldwide Support

40 $

(160)

(156)

187

(440)

(415) (387)

1,441

(455) (433)

(376)

Office Services

1,023 $

$

(17)

$

(81)

3,227 $

$

(83)

$

9,797 $

$

(1,108) $

HBIHQFacilities

PM

113

StorageMoves

54 37

63 $ $

(18)

$

(23)

214 $

$

(47)

$

(42)

$

631

$

(160)

$

(148)

ExitedFacilities

Setup

86

NY -34Design

104 $ 200 $ 304 $

4

(2)

300 626

(6)

(13)

914

(4)

(6)

5 Location •67%ofworkorderswerecompletedatHQ •19%were completed inNY Type •21%ofworkordersweremoveor furniture related •114preventativemaintenanceworkorderswerecompleted thismonth;PM closing ratio100% •41%ofNYworkorderswere formovesor furniture Reported •65%ofworkorderswere reportedby facility services •The closing ratio forSeptemberwas100% Productivity •Maintenancecompleted821workordersduring September •Themaintenance teamcompletedanaverageof 41 workordersperday which isapproximately8per techeachday 4 22 1,845 (11) (15) 63 56 (3) $ 9 $ 2,759 $ $ $ (158) $ (453) $ 15,402 $ (687) $ (1,242) $

NY -MadisonDesign NYDesignFacilities

(3)

3 1

$

1

$

927 $

Work Orders by Location September -821

1,636 $

$

(43)

$

(110)

5,113 $

Sub-totalFacilitiesbeforeallocation

HQ1 38%

NY 19%

R&D 9%

CC 4%

HQ2 29%

12

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Where Do We Find Savings?

On average, Cassidy Turley professionals save clients between $ .55 and $ 1.80 per square foot

$ 0

$ .25

$ .50

$ .75

$ 1.00

$ 1.25

$ 1.50

$ 1.75

$ 2.00

$ 2.25

$ 2.50

$ 2.75

$ 3.00

Savings may include...

JANITORIAL Review scope and implement innovative methods

ELECTRICITY UTILITY Perform electric rate analysis

LEASE RESPONSIBILITIES Review maintenance responsibility language; push back on landlords

CAPITAL EXPENSES Review capital expenses and multiple bid projects

SECURITY Review technology, scope of services and timing

HVAC Install programmable thermostats and establish temperature set points

$ .05- $ .15

$ .10- $ .20

$ .05- $ .10

$ .07- $ .10

$ .05- $ .10

$ .01- $ .10

RECORDS RETENTION Streamline process

PARKING LOTS Review repair and maintenance program

CONTRACT MANAGEMENT Review terms and adjust service level agreements

OPERATING EXPENSES Compare reconciliations and invoices to service agreements and leases

LANDSCAPING/SNOW REMOVAL Multiple bid services and review existing contracts

PREVENTIVE MAINTENANCE Establish a PM program to extend equipment lifecycle

$ .05- $ .15

$ .01- $ .04

$ .02- $ .07

$ .02- $ .08

$ .04- $ .10

$ .02- $ .10

PLUMBING Install low-flow water fixtures

EQUIPMENT WARRANTIES Track and review warranties

PROCUREMENT Leverage national relationships and standardize pricing

DELIVERY MODEL/REPORTING Facility issue tracking to aid strategic portfolio management

FIRE & LIFE SAFETY Utilize national vendor for service and ensure code compliance

LIGHTING Utilize lighting at appropriate times and install automatic lights

$ .01- $ .05

$ .02- $ .10

$ .02- $ .04

$ .02- $ .05

$ .05- $ .15

$ .01- $ .08

BUILDING AUTOMATION SYSTEM Utilize existing systems to full capabilities

STAFFING Review facilities staffing and staff appropriately

COMPETITIVE BIDDING Bid out goods and services to obtain best pricing

VENDING Consolidation of soft services

BUILDING OPERATIONS Re-commission and review parameters

PEST CONTROL Review service levels and leverage national suppliers

$ .15- $ .75

$ .01- $ .04

$ .02- $ .05

$ .05- $ .10

$ .01- $ .03

$ .02- $ .10

10 | Cassidy Turley

Case Studies

Within the first 3 months of providing facilities management services, Cassidy Turley produced savings in excess of $100,000 through right-sizing services, vendor management, and utility spend review.

Within 1 month of the facilities management partnership, Cassidy Turley saved more than $8,000 through right-sizing services, double bidding projects, and changing utility rate plans.

As a provider of strategic facilities management and project management services for the past 12 years , Cassidy Turley saved more than $2 million through streamlining operations and processes while improving service levels.

cassidyturley.com | 11

“

Driving Best In Class Solutions

An Energizing, Productive and Efficient Workspace Enables client associates to focus on core business objectives

“For more than 20 years, Cassidy Turley has been a vital partner for us at Edward Jones Investments. The quality of their people and their ability to con- sistently meet any real estate challenge has been instrumental to our growth in the United States and abroad.” – James D. Weddle, Managing Partner

Reducing and Controlling Costs Informed financial management that drives significant operational savings

A Culture Designed to Optimize Facility Performance Collaborative approach aligned to our clients goals

Managing your facility through innovative solutions that deliver measurable outcomes in the following areas:

“

Vendor & Contract Management

Facility & Operational Review

Facility Management Service Center

Technology Solutions

Sustainability Services

Project Management

• Centralized FM Service Center responds to service requests 24/7 • Variable resources cost effectively service smaller locations and dispersed portfolios • Leverage vendors across 450 million SF of managed property,

• Specialists to manage LEED certification assistance to basic sustainability programs • Purchasing agreements, energy analysis, controls and operational changes to reduce costs • Recycling, reduction, awareness and commuting study programs

• Identify workloads, procedures and increase value and utilization • Development of predictive and preventive maintenance programs • Improve overall facility efficiency, ensure consistent service levels and mitigate risk exposure

• Nationwide project management and design services, managing 4,000 projects each year • Understanding project goals and timelines while increasing quality and reducing costs • Saving an average of 10-25% of the project cost

• National sourcing team and regional subject matter experts • Vendor Management System tracks 4,000+ vendors, quality, contracts and insurance • Leverage 450 million square feet of managed property to reduce vendor costs by 15%-30% without compromising service

• Customized solution to meet each client’s needs • Dedicated IT Project Management team for implementation and client integration • Provide meaningful data, ease of use and cost effectiveness

and manage to service levels, contract terms and metrics

12 | Cassidy Turley