Optimizing the Close Process with a Source-to-Report View of Financial Data David Watson Concentric Solutions

Agenda Introduction Enterprise Performance Management Client Perspectives Creating a Source-to-Report View of Financial Data The Road to Fast Close Reporting

About Concentric company profile  Enterprise Performance Management (EPM) consultancy formed in 2005 with offices in the UK and Germany  Experts in Financial Close solutions, Budgeting, Planning & Forecasting solutions and Executive Dashboard applications  Qualified accountants, certified IT professionals, Oracle Hyperion Specialized consultants  Recognised by our customers - UK Oracle User Group Silver Hyperion Partner of the Year UK Oracle User Group Gold Hyperion Partner of the Year UK Oracle User Group Gold Hyperion Partner of the Year

Enterprise Performance Management

The EPM Vision Insight Performance Action Set Goals Model Plan Monitor Analyze Report  Integrated management processes  Operational decisions are linked to strategic goals  Consistent, reliable insights that drive action  A lower cost of reporting and reduced system complexity  A single version of the truth

Accounting irregularities have brought financial reporting into the spotlight The Challenge of Corporate Reporting  Fast close vs data quality  Fragmented reporting supply chains  Autonomy vs accountability  Decentralised vs single stream  Audit controls vs flexibility to keep pace with change  Too many spreadsheets….

The Challenge of Corporate Reporting PwC survey of FTSE350 16%Base reporting on strategy 27%Clearly explain underlying revenue drivers 35%Align KPIs to strategy 19%Link external drivers to strategic choices 7%Communicate detailed commentary across reporting models by segment  Compliance-driven approach to external reporting  Focus on financial measures to the detriment of non-financial reporting  Increasing pressure of timely reporting to investors and markets  Governance more important than transparency?  Finance overwhelmed by factors not aligned with the reporting risks Source: PwC Competitive Edge Survey 2011

Collect dataClose Adjustments Currency I/C Subsidiaries Report Management Legal External Analyze 6 Days 12 Days Average Collect CloseAdjustmentReportAnalyze and Forecast <2 Days 6 Days World Class More time! Source: Hackett Group Benchmarking-Solutions Book of Numbers The Challenge of Corporate Reporting

The Road to Fast Close Reporting

Optimizing the Financial Close Process Close sub ledgers into GL (AR, AP, FA, etc.) Perform Reconciliations and Post Accruals Deliver self service financial reporting to the organization Create external reports with disclosures and financial data Automate and deliver external & statutory filings Gather and validate complete data sets to support all financial reporting needs Automate consolidated financial reports leveraging multiple hierarchies and calculations Sub Ledger Close General Ledger Close Data Assurance Consolidation Internal Management Reporting External Financial Reporting Filing

Get it right first time!  Apply a corporate close calendar for feeder systems to G/Ls.  Automate allocations and accruals in the G/L.  Standardise reporting formats for reliable data and faster review. Central Finance efficiency  Perform intercompany reconciliations ahead of month end.  Use phased submissions to act on availability of site data.  Create automated ledger integrations for fast load of financial data. Intelligent review  Design hard and soft validations to facilitate one-touch reviews.  Streamline the approval process – focus on what matters.  Use process controls to minimize post-close entries. Consolidation & Reporting  Automate top-side adjustments and equity eliminations.  Build consolidation hierarchies that match cycle requirements.  Use exception reporting with drill through analytics.  Integrate financial and management reports as production packages. Best Practices Optimizing the Financial Close Process

Client Perspectives

Merlin Entertainments Group A client perspective Bruce Moyes, Merlin Entertainments Group

Client Success: Corus Deployment of HFM reduces close by 2 weeks “The new Group Reporting System successfully merges multiple reporting models across the group, improving the efficiency of our consolidations. We have reduced our monthly closing cycle by around 2 weeks and save 30+ man days of time at head office.” Group Financial Controller Tata Steel Europe £12 Billion t/o service and steel manufacturing company Tata acquisition of Corus imposed fast close challenge Concentric business process review ensured project focus on key drivers for change Global deployment in 8 months Single stream, centrally architected solution cuts 2 weeks from closing cycle 4000 spreadsheet reports replaced with 300 HFM reports

Creating a Source-to-Report View of Financial Data

Hyperion Financial Data Quality Management SOURCE SYSTEMS  Prepackaged integration  Data loading including supplemental data, line item detail  Dimensional mapping verification  Process management  Excel  G/L  ERP, EBS, JDE  Flat files  ETL repositories  Hyperion Financial Management  Hyperion Planning  Hyperion Essbase  Hyperion Enterprise  Data Marts DATA PREPARATION SERVER EPM SYSTEMS GUIDED WORKFLOW USER INTERFACE BPM Adapters  Data cleansing and transformation  Task scheduling  Text and document archive  Audit review  Data staging

Data Integration with Hyperion FDM  Source data files & Import Format -Load Any Source Data file -Load Any data direct from data base -Load data from EBS, JDE, PeopleSoft, Other DB’s  Source to Target Maps & Validation -Map source dimensions to target  Validation Check Report -Show post-load and calculated results from target  Target System Results -Show load results in target

Data Integration with Hyperion FDM Load data from file or direct from data base Multiple Entities imported in a single phase, with scaling applied as data is read from source Validation of source to target accounts takes place and missing maps are flagged Data is exported to HFM with a post-Export Validation Report as proof Data load results displayed in EPM Workspace after load

 Import results are displayed on the Import Screen after the user clicks the Import button.  FDM allows drill-back to source files at any time, now or in the future, offering a complete audit trail.  If data is sourced from a DB, the drill-back will display the query used to retrieve the source data  All files are archived on the FDM server which also allows attachments to data loads. Import Results

 FDM allows for online map changes and warns the user if any maps are invalid/duplicated.  Once the data is mapped it will be validated and ready to load to the target application. Source to Target Maps & Validation

 Checks Target application after data load and returns post- load and calculation results for all entities within current data load.  Allows for system to prompt user for more data, and can be fully customised to include any account. Validation Check Report

 FDM loads all data in data load file/DB table to Target application, in this case HFM.  Target adapters exist for HFM, Planning, Essbase, HSF, Enterprise, Custom Systems  Drill-back is available for the Workspace, Financial Reports and SmartView for Excel Target Application results & Drill-back

Hyperion Financial Management Browser/Windows/Smart View Client MS Office Integration Data Entry & Consolidation Formatted ReportsDashboards Currency Translation & Eliminations Journals Role-Based Security Security Logs Meta Data Repository Interoperability Fail-Over and Load Balancing Server Data Inter-Company Processing Process Management Line Item Management Custom & Predefined Dimensionality Audit Tracking GAAPIFRS Compliance Rules Engine Data Import/Validation Documents attachments Cell text

Hyperion Financial Management

Dashboards on an iPad

Questions?

Contacts UK & Ireland  99 Gray’s Inn Road20-23 Woodside Place LondonGlasgow WC1X 8TYG3 7QF t: +44 (0) t: +44(0) w: Germany & Austria  City-Office Zenettistrasse 2 D Munich Germany t: +49 (0)

Thank you David Watson