Insert Picture Here Improving Your Fiscal Close Process

Improving Your Fiscal Close Process Jeff Jacoby Senior Sales Consultant – Oracle EPM January 21, 2009

Agenda • The Fiscal Close Challenge • Financial Consolidations At - A - Glance • Compliance • Reporting • Consolidation Demonstration • Q&A

The Fiscal Close Challenge Reporting Goal: High Value While Reducing Cycle Times 6 Days Average 12 Days Close World Class <2 Days Adjustments Report Currency I/C Subsidiaries Collect data Management Legal External 6 Days More time! Collect Close Adjustment Report Source: Hackett Group Benchmarking -Solutions Book of Numbers Analyze and Forecast Analyze

Financial Consolidation At-a-Glance Collect Data Calculate & Adjust Report • Gather from multiple & disparate applications • Store data in a centralized repository • Apply FASB and IFRS consolidation rules • Perform currency translation & aggregation • Generate financial statements, managerial reports, and perform ad hoc analysis “Consolidations applications are seeing a resurgence after what was considered a maturing of this market, driven primarily by compliance issues in the United States (driven by Sarbanes-Oxley) and worldwide (driven by the pending International Financial Reporting Standards). ” -- Kathleen Wilhide and Henry D. Morris

Business Pressures More Stringent Regulations Mergers & Acquisitions • What can I do to accelerate • How can I ensure new • How do I improve transparency, • How can I simplify keeping my reporting as required by statutory regulations? accuracy, and auditability? Collect Data acquisitions are quickly integrated into my company? books in synch with re-orgs? Calculate & Adjust Report Demand for Growth • How can I improve visibility into overall enterprise performance? • How can I help my managers identify opportunities to improve profitability?

Operational Challenges Subsidiary 1 ¥ Subsidiary 2 £ Joint Venture Rs Accounting Differences • Charts of accounts • Currencies • Accounting methods • Calendars Manual, Error-Prone Processes • Data extraction, transformation, and load • Adjustments and eliminations Parent Company Consolidation Complex Ownership Structures • Minority interest • Intercompany • Cross holding transactions Multiple, Fragmented Systems Affiliate € Lengthy close process with weak internal controls Rigid systems that cannot exploit new opportunities Disconnect between strategy and execution $

Potential Approaches General ledgers/ Basic reporting and consolidation functionality ERP systems Spreadsheets Built for individual, not enterprise tasks, no audit trail OLAP tools “Build” approach, viable way to address specific customer requirements Packaged applications “Buy” approach, includes best practices functionality, fast time to benefit

Oracle’s Hyperion Financial Management Market-Leading Financial Consolidation and Reporting Application FEATURES • Easy to Integrate • Financial Data Quality • Complete Audit Trails • Flexible Workflow • Powerful Reporting • Finance Owned & Operated BENEFITS • Confidence in the Numbers • Reduce Cycle Time • Automate Collection & Validation • Lower Cost of Compliance • Speed and Agility #1 Financial Consolidation, Reporting and Analysis

Why Hyperion Financial Management? • Improved Close Process – Speed and Visibility • More Controls – Auditability • Better Reporting – Flexibility

Financial Data Quality Management The Only One of it’s Kind! SOURCE SYSTEMS GUIDED WORKFLOW USER INTERFACE DATA PREPARATION SERVER • • • Excel ERP G/L Flat files ETL Oracle e. Bus • • • Data cleansing and transformation Task scheduling Text and document archive Audit review Data staging EPM Adapters • Prepackaged integration • Data loading including supplemental data, line item detail • Dimensional mapping verification • Process management EPM SYSTEMS • Hyperion Financial Management • Hyperion Planning • Hyperion Essbase • Hyperion Enterprise • Data Marts

Addressing Compliance Needs Sarbanes-Oxley Requirement Section 302 - CEO/CFO Must Certify Financial Management Submissions contain audit trail Section 404 – Internal Control Report Mandatory review/approval procedures Section 401 – Conditions for Use of non-GAAP Financial Measures Multiple organization hierarchies and chart of accounts U. S. Auditing Standards Autonomy from transaction systems Accelerated Reporting Web solution, I/C reconciliation, journals IAS/IFRS Requirement Financial Management EU Countries to comply by 2005 IFRS, Multi-GAAP, and Local Statutory Recognition and Measurement Custom dimensions; financial intelligence, journals with audit trail Consolidation and Reporting Segment reporting, specialized currency, inter-company, disclosures

Drill-through to General Ledger Details Insight into Action in a Single System Hyperion Financial Management Hyperion Planning Oracle EPM System Hyperion FDM Analyze Root Cause

Flexible Reporting Options Financial Reports Dashboards • Web-based production report writer for producing highly formatted reports such as Financial Statements. • Web-based, interactive reporting and analysis tool. • Reports are easily developed and maintained by business • Useful for Execs and Analysts alike • Reports can combine data, graphs, text, and images. • Flexible “slice & dice”, Traffic lighting, Ranking/Sorting capabilities. • Flexible output options: HTML, PDF, and hardcopy. • Can display non-financial metrics with financial data. • Easy to create via drag and drop – no help needed from IT. • Reports can be batched into books and automated to meet monthly, quarterly, and yearly reporting requirements. Smart View Smart Space ·Enables business users to quickly and easily connect to Hyperion • The first gadget-based user interface designed specifically for Planning using Microsoft Office® tools (Excel, Power Point, Word, Outlook) for analysis and reporting. ·Allows users to view, import, manipulate, distribute and share data in Microsoft Excel, Word, and Power. Point interfaces ·Reports and Dashboards can be easily incorporated into Power. Point presentations and Word documents. Create once and quickly refresh to review the latest information. Enterprise Performance Management • Consists of a set of configurable gadgets that run on the desktop providing continuous access to financial, operational and performance related information. • Includes a secure instant messaging system for shared decision making.

Hyperion Financial Management 1300+ Customers! Communications Media Financial Services Consumer Technology Energy Industrial Retail Life Sciences Services/Other

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