Oracle Hyperion Financial Management

Agenda
Introduction The BizTech Team The Consolidation Process What is Hyperion Financial Management? Hyperion Financial Management Solutions Summary

Introduction

Quality | Results
From Many Completed Implementations

About BizTech
Professional Services Firm Professional Services firm focused on Oracle applications and technology Oracle Platinum Partner Highest Level of certification Specialized Pillar Partner in BI/EPM, EBS, CRM, and Core Technology Over 400 successful Oracle implementations over the past 15 years NY, PA, NJ, VA offices with Regional, Global, and International clients 100+ Consulting Resources Centers of Excellence across key solutions and industries Solutions: Oracle Applications, Technology, BI/EPM, and Managed Services Industries: Financial, Professional, Business Services; Communications and Media; Manufacturing; Distribution; Public Sector, Government; Healthcare and Life Sciences BizTech Software Solutions : BizTech Data Integrators, BizTech Insight Accelerators, BizTech Reporting Foundation Oracle License Reseller

Award Winning Partner

IDC and Oracle expert panel selected BizTech over Thousands of Oracle partners, based on service delivery excellence to our clients Proven Oracle Experience with the full portfolio of Oracle Solutions Oracle Titan Award

Global Implementation Partner

Client-Centric Practice Areas

Oracle Applications - Full Portfolio of Oracle Applications Solutions - Implementation, Upgrade, Migration - Since 1990 MPL6 to R12 Experience - Over 400 successful implementations Oracle Applications Oracle Technology BI/EPM Oracle Technology and Business Intelligence - End to end service offering in BI and EPM - Fully staffed team of Data Architects/DBAs - Solid experience in RAC, HA, and HS designs - Understand full Oracle technology stack

Clients Managed Services ITO Managed Services and IT Outsourcing - Remote or Onsite services - Full portfolio of Oracle Applications and Technologies - World-Class Data Center with 24x7 Support - Instant capacity, operational focused model Oracle Software Provider Oracle Software Provider - Full Portfolio of Oracle License Resell - Helps Clients Optimize License models - BI Software for the agile enterprise - BizTech Data Integrators - BizTech Insight Accelerators - BizTech Reporting Foundation

The Consolidation Process

Pressure on Finance Departments

More Stringent Regulations Mergers & Acquisitions

What can I do to accelerate

reporting as required by statutory regulations?

How can I ensure new acquisitions

are quickly integrated into my company?

How do I improve transparency,

accuracy, and auditability?

How can I simplify keeping my

books in synch with re-orgs?

Collect Data

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?

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

The Consolidation Process

What is Financial Consolidation?
Consolidation in financial accounting is a technique that summarizes a group of companies' financial statements into one. This offers the benefit of viewing the whole group's financial information together to see how all companies are doing combined. Increasingly, global organizations need to integrate data from multiple transactional systems, transition to new international financial reporting standards, and improve their transparency and regulatory compliance procedures. Companies use a variety of tools (spreadsheets, emails, pivots and queries) to identify and summarize all business unit activity that interacting with other business units.
This can often mean thousands of transactions, all of which must be identified, reconciled and eliminated!

Elimination
Intercompany elimination refers to the process for removal of transactions between companies included in a group in the preparation of consolidated accounts. Intercompany transactions (sales, services, transfers) must be eliminated in the parent financial statements otherwise a company could be double-counting activity. However, the process involves a lot of reporting and paperwork for intercompany relationships can be quite complicated.

Data must be reviewed, reconciled and approved before process is complete.

Internal Control Issues by Major Category Documentation

By Sub Type Policies/documentation Issues Anti-Fraud Controls

# 141 15 20

Percentage of Internal Control Issues* by Major Category

7% 27% 9%

Entity-Level & Anti-Fraud Controls

Compliance Monitoring

Control Environment
Application of GAAP/accounting policies Financial Statement Close Process & Disclosure Financial statement close process & consolidation Intercompany accounts/reconciliation Review of significant or unusual transactions Change controls Date protection IT Controls Infrastructure Security/user access Merger Issues Merger/predecessor issues

151
256 120 93 212 25 23 27 52 27 59 32 76 157 26 30 50 75 38 55 83 79

11% 2% 3% 1%

34%

Multilocation Considerations International operations & subsidiaries Other Personnel Issues Other Segregation of duties

6%

Staffing issues (levels, expertise, training) Accounts payable Accounts receivable Accruals/restructuring costs Contracts/loans/third-party transactions Significant Account Level Employees benefits/pensions Inventory management Property, equipment, leases Revenue & billing

Documentation Entity-level & Anti-Fraud Controls Financial Statement Close Process & Disclosure IT Controls Merger Issues Multilocation Considerations Other * Source: The Ames Research Group (June 30, 2005);
analysis by Ernst & Young Center for Business Knowledge Personnel Issues
Total # Internal Control Issues

Tax issues

112
2,034

Significant Account Level

Foreign Currency Translation

How is Consolidation impacted by various currencies?
Businesses may enter into transactions (sales, payments, etc.) in multiple currencies. Each business unit translates these items to its functional currency at an appropriate exchange rate. The QBU then prepares periodic reports of its position (balance sheet) and activity (income and cash flow statements) in that functional currency. Per accounting standards, before results are consolidated into the parents GL, foreign currency amounts must be translated (converted) from the subsidiary currency into the parent currency. Different types of transactions must be translated at different rates.
P&L activity (sales, COGs, expenses) must be converted at the AVERAGE monthly rate. Balance sheet activity (Cash, AR, AP) must be converted at the ENDING monthly rate.

When an item is settled, the difference due to exchange rate movement in the amount accrued and the amount settled is treated as foreign exchange gain or loss in the financials.

Different Accounting Standards

How can different accounting standards worldwide impact foreign currency transactions? Currently, most US companies with international subsidiaries are required to account for this activity per the standards of GAAP (Generally Accepted Accounting Standards). However, International Financial Accounting Standards (IFRS) will be required adoption by US Companies by 2014 unless the SEC decides to delay implementation.
Similarities
Approach
(Some Examples)

Differences IFRS
Fixed Assets & Investments

Approach
(Some Examples) Revenue Recognition Fair Market (e.g. AR or Inventory Valuation) Detailed Disclosure Segment Reporting Chart of Accounts Not Mandated
Distinction Between Tax and External Reporting

IFRS

US GAAP

US GAAP
Only Certain Fixed Assets Rare 2 Models Only Equity Expensed
Unitary

Fair Market Revaluation

Extraordinary Items Consolidation Joint Ventures Development

Fixed Assets

None Control Proportional OK Capitalized

Components

Leasing Inventory Impairment

Financing No LIFO 1 Step, Reversible

Cap vs. Op LIFO OK 2 Step, No Reversal

Adopting IFRS, leaving GAAP

A function of your Dual Reporting Choices

1.
Hyperion

Many subsidiaries will retain a GL and subsystems in compliance with either

Statutory requirements (foreign subsidiaries) Regulatory legislation (utilities, financial services, etc.)

2.
ERP GL MultiGAAP Features

Hyperion HFM will be the main go-between from legacy GL to financial reporting systems.
1. This is the most likely scenario for US companies.

3. 4.

Others will find that their existing GL is quite appropriate, but that they have a few subsystem areas that will require adjustment. Others will require that they need to do something more substantial, for example restructuring their business, up to the point of reimplementing

ERP Subledgers

Complicated Consolidations
As you can see, intercompany accounting can be a VERY complicated process!
Due to acquisitions, intercompany activity and foreign currency accounting, getting a real picture of the state of the total business (consolidation) can be challenging. Compliance with different accounting standards, various reporting and filing methods, disparate general ledgers and multiple currencies can be an accounting and reporting nightmare. Reviewing, matching, reconciling and accounting for multi-entity, multi-currency intercompany transactions can often slow the monthly close process down by days or even weeks.
In fact, mid-size to larger companies often retain an entire team in the accounting department just to do consolidations!

Using Excel for Intercompany accounting, consolidation and translation is not the answer.
Excel is a great personal productivity tool but is not designed for complex calculations, accounting for multiple lines of business and/or entities or complicated consolidations. Additionally, Excel spreadsheets do not lend themselves to auditing, process management, version control and approvals. Companies with millions of dollars in revenue using Excel as their consolidation tool are exposing themselves for errors, deficiencies, or material weakness in internal control.

What is Hyperion Financial Management?

HFM - Simply the Best

FEATURES

Multi-Currency Capability Multi- Dimensionality Features Automates Intercompany Accounting Integrates Data from Most GL Systems. Excel Integration Enterprise Collaboration BENEFITS

Financial Reporting Consolidation and Analysis Tool in the World

Web interface Speed & accuracy Finance owned Align entities and divisions Increased Visibility and Accountability Out of the box features improved ROI

Hyperion Financial Management

Oracle Hyperion Financial Management (HFM) is a comprehensive, Web-based application that delivers global financial consolidation, reporting and analysis in a single, highly scalable software solution. HFM utilizes today's most advanced technology, yet is built to be owned and maintained by the enterprise's finance team. HFM has financial controls, workflow and best-practices built into the platform to support:
US GAAP and IFRS Reporting Audit Trails and Activity Logs Foreign Exchange Translations Sarbanes Oxley (SOX) Compliance Intercompany Eliminations XBRL Capabilities

In addition to the powerful features provided "out of the box", HFM is also highly configurable to support the complex elimination and allocation requirements specific to your organization. HFM is a finance-owned, IT-supported system that allows your organization to quickly make changes as conditions warrant but tracks those changes to provide transparency and visibility for auditability. While HFM is a web software application, it also has an add-in with Microsoft Office (called Smartview) which allows users to forecast or budget in Microsoft Excel, an environment comfortable to most finance users.

Expanded Dimensionality
View Category Year Entity Entity View Scenario

Value
Account Account ICP

Custom 1
Custom 2 Custom 3 Custom 4

Hyperion Financial Management

Hyperion Enterprise

Period

Period

20

HFM Benefits
Enable a More Efficient Process, controlled by Finance
IT not needed for most, if any, aspects of HFM. A tool used for Finance and owned by Finance. Ensures that all data is integrated and validated prior to review by management.

Automate and improve the timing and efficiency of the month end close.
Increased Dimensionality and Intercompany Process eliminates much of the manual matching and reconciliation process. Reduce consolidation and reporting cycles by daysor even weekssimply by eliminating redundant data entry and the need to check and double-check actual results.

Reduced data entry, risk of error and risk of key files located in hard drives or spreadsheets.
Modeling or tracking such a business via linked spreadsheets might work if conditions remained stable, but they dont. Constantly modifying a collection of spreadsheets is a particularly complicated, time-consuming process full of workarounds and compromisesthe opposite of whats needed.

Easier financial consolidation no need for manual uploads, email of files or transferring of files. Fast calculation performance most calculations performed in 4 seconds or less Workflow feature ensures timeliness or user preparation and management review
Email alerts to remind user of deadlines.

Key Capabilities
Integrate, Validate, Translate, Consolidate
Use the Financial Data Quality Management (FDM) tool to map and integrate from various GLs. Using FDM (formerly known as Upstream), follow the Fish upstream to consolidate and validate data Manage the workflow and approval of the consolidation process. Import Foreign Currency rates from established sites to save time and improve accuracy. Drill through and Drill back into your source data and create journal entries into HFM. Create control questions manage sections 302 and 404 of SOX

HFM Benefits (Cont.)

Improve transparency and compliance while reducing costs.
Helps reduce the cost of compliance (as stipulated by the Sarbanes-Oxley Act, electronic filing, and other regulatory requirements) and support disclosure requirements. Enables companies to automatically generate SEC, XBRL friendly documents. Spend less time on processing and more time on value-added analysis of the business including review of performance metrics and other KPIs.

Perform strategic analysis

Deliver a single version of the truth.

Provide a single version of the truth to support financial management and statutory reporting. No separate versions on different folders, networks or computers. Topside or adjusting entries are made in HFM.
HFM integrates not only with Hyperion products but also with your existing infrastructure. With numerous out of the box features, HFM can often be implemented and utilized in a matter of in weeks Owned by Finance, the Administrator is usually responsible for granting or restricting access.

Easily integrates.

Quick implementation time maximizes a Companys Return On Investment

Reduced Administration and stricter security.

HFM Platform

Financial Data Quality Management

SOURCE SYSTEMS GUIDED WORKFLOW USER INTERFACE DATA PREPARATION SERVER
Excel ERP G/L Flat files ETL Oracle eBus
Data cleansing and transformation Task scheduling Text and document archive Audit review Data staging

EPM Adapters

EPM SYSTEMS
Hyperion Financial Management Hyperion Planning Hyperion Essbase Hyperion Enterprise Data Marts

Prepackaged integration Data loading including supplemental data, line item detail Dimensional mapping verification Process management

HFM Architecture
The basic FDM process includes six steps: 1. Import source data 2. Validate source data against mapping tables 3. Export source data to a target system 4. Consolidate target system data 5. Validate target system data 6. Review and validate internal financial control

Source Systems

Hyperion Financial Management Solutions

Drill-through/Drill back to GL
Hyperion Financial Management

Hyperion FDM

Oracle EBS

Oracle Account Analysis and Drill-Down for both Actual and Budget

Hyperion Smart View

Accounts love their Excel and Oracle Understands this! HFM features Ad-Hoc Analytics via Excel via reports or Drill through/back Use MS Office to enter, analyze and report on subsidiary data MS Excel add-in allowing access on or off-line Users download forms to Excel Manipulate data just like the full web client Synchronizes to server when ready to be updated.

Flexible Reporting Options

Financial Reports
Web-based production report writer for producing highly formatted reports such as Financial Statements. Reports are easily developed and maintained by business Reports can combine data, graphs, text, and images . Flexible output options: HTML, PDF, and hardcopy. Reports can be batched into books and automated to meet monthly, quarterly, and yearly reporting requirements.

Dashboards
Web-based, interactive reporting and analysis tool. Easy to create via drag and drop no help needed from IT. Useful for Execs and Analysts alike Flexible slice & dice, Traffic lighting, Ranking/Sorting capabilities. Can display non-financial metrics with financial data.

Smart View
Enables business users to quickly and easily connect to Hyperion

Smart Space
The first gadget-based user interface designed specifically for Enterprise

Planning using Microsoft Office tools (Excel, Power Point, Word, Outlook) for analysis and reporting.
Microsoft Excel, Word, and PowerPoint interfaces

Performance Management

Consists of a set of configurable gadgets that run on the desktop

Allows users to view, import, manipulate, distribute and share data in Reports and Dashboards can be easily incorporated into PowerPoint

providing continuous access to financial, operational and performance related information. Includes a secure instant messaging system for shared decision making.

presentations and Word documents. Create once and quickly refresh to review the latest information.

HFM, Fusion Edition

New Features
New Equity Pick-up Module Phased Submissions Enhancements Intercompany Transaction Enhancements Oracle BI Publisher Templates for System Reports Extended Analytics Creation of Flat Files Extended 64 Bit Platform Support Drill-through to Oracle EBS Financials via FDM Oracle Data Integrator Support

Addressing Compliance Needs

SARBANES-OXLEY REQUIREMENT
Section 302 CEO/CFO must certify Section 404 Internal control report Section 401 Conditions for use of non-GAAP financial measures U.S. auditing standards Accelerated reporting

FINANCIAL MANAGEMENT
Submissions contain audit trail Mandatory review/approval procedures Multiple organization hierarchies and chart of accounts Autonomy from transaction systems Web solution, I/C reconciliation, journals

IAS/IFRS REQUIREMENT
Global Standard, Convergence Recognition and measurement Consolidation and reporting

FINANCIAL MANAGEMENT
IFRS, Multi-GAAP, and local statutory Custom dimensions; financial intelligence, journals with audit trail Segment reporting, specialized currency, inter-company, disclosures

Summary

Summary
Why Choose Oracle Hyperion Financial Management?
Improve
The Financial Close Process by days or even weeks Consolidation and Acquisition Accounting best practices Turnaround time for providing Financial Results to Chief Decision Makers

Enhance
ROI with quick implementation time and numerous out of the box features. Visibility into subsidiary operating results Ability to analyze and gauge results through improved performance metrics

Reduce
Audit and compliance costs through improved transparency Manual Controls, processing times and data reconciliation Errors, data entry, control risk, reporting times, departmental overload

Refine
Intercompany accounting and reconciliation process Foreign currency transactions and translation process Financial Consolidation and reporting features

Why Choose BizTech

Every company claims they deliver quality at a good price, why is BizTech the superior choice
Oracle Platinum Partner Client First Philosophy Focused Mission Proven Methodology and Process Orientation Simple to engage and do business together Encompassing Ethics and Integrity Balanced Leadership Team Focused on YOUR industry area for over a decade

Choose | The Right Approach

BizTech RapidApp Methodology

RapidApp Methodology

BizTech leverages our proven methodology, RapidApp, on every engagement

Phases

Break the project into smaller, more manageable, sections of work Allow for planned pauses & overlap
Areas of concentration within a phase Not all will be performed on every project Formal work products requiring review and acceptance Controlling documents

Tasks & Actions

Deliverables

Policies & Procedures

Project planning, progress tracking Status reporting Project scope definition and management Formal acceptance of deliverables

RapidApp Methodology
The two most critical concerns for a successful implementation:

PROVEN APPROACH
Prepare Configure Test D Prepare Test Scripts Deploy End User Training Initial Planning Accelerator Magic

EXPERIENCED PRACTITIONERS

Prepare Environment

D Prepare CRP Scripts

Setup Test/ System Testing

Setup Production

Define Project D Launch Project

Conference Room Pilots

User Acceptance Testing

Go Live!

Accelerator Prep

Superuser Training

Go/No Go Decision

Post-Go Live Support

Project Mgmt, Quality Assurance, Knowledge Transfer

RapidApp (cont.)
Phase 1: Prepare In the Prepare phase, our objective is to build your project mission and definition. We will build a roadmap and framework for the entire project. We define the scope and terms; identify people and resources, milestones and targets. We work with your project team to establish and communicate expectations for the project and perform baseline Oracle training.
All implementation strategies are explored and decided upon during this phase.

We will establish the base line technical infrastructure that will be necessary to complete the project.
All of these elements are the basis for developing your project plan.

At the end of the prepare phase, the deliverables include: A definition of Scope, Objectives & Approach that will guide the project. A RapidApp WBS that outlines all tasks as well as a resource plan. A Quality Plan for all phases and deliverables.

RapidApp (cont.)
Phase 2: Configure In the Configure phase, youll establish the boundaries of your project. We will work with your team to capture your functional requirements and translate those requirements into a technical design. The technical design becomes the foundation against which we develop the data warehouse, ETL and dashboards. The conference room pilot at the end of the Configure phase will be the point at which we validate that the develop solution matches the defined requirements. At the conclusion of the configure phase, you will have: A definition of Scope, Objectives & Approach that will guide the project. Application Functional Design specification document(s) Application Technical Design specification document(s) Conference Room Pilot Scripts that were used to validate the system A working non-production environment (data warehouse, ETL, dashboards and reports)

RapidApp (cont.)
Phase 3: Test Youre going live soon, and were helping you prepare. Were with you to update and configure the final system configuration. Well help you conduct system testing to ensure a smooth transition into production. Well also help you determine a training approach for your end users, design training material and a training environment, and conduct the training, if requested. At the end of the test phase, the deliverables include: Documented Test Scripts that you used to test the system A complete end user training approach ready for rollout including Training Guides A fully tested, production-ready system. .

RapidApp (cont.)
Phase 4: Deploy Your Oracle solution is live. As you make the transition, we can remain with you in a support role, helping to troubleshoot, teaching you how to maximize the value of your new system, and identifying any new opportunities to continue with the transformation to an e-business company. At the end of this phase, you will have: A System Configuration Document A Production Software Infrastructure Summary A Deployment Plan Stopped doing your business processes in your legacy system. Moved all project support activities to your production support team. Trained your end users.

RapidApp: The Value Proposition

Allows organizations to realize immediate cost savings through an accelerated implementation. Establishes a budget conscious methodology that deploys functionality to satisfy core functional requirements. Promotes the selection, inclusion, and customization of additional functionality through additional discovery after your product is implemented. Facilitates a phased approach in which knowledge transfer is conducted whereby clients assume ownership of future project phases; reducing dependency on external services and associated costs. Utilizes pre-built, customizable templates (models, forms, reports and business logic) reducing development cycles and project cost.

ALA Delivery Resource Model

Leveraging the Architect Lead Associate model yields higher productivity at lower cost, which: Maximizes value over traditional team approach Minimizes risk of single threaded SME approach
Architect The Architect designs the solution, and is interacting with the work stream leads to ensure implementation approach is optimal.

Lead The Leads are Subject Matter Experts, responsible for client interactions, requirements, ensuring Associates execute the work plan tasks and validates solution.
Associate The Associate may be on-site or remote, executes the work plan tasks, unit test, and provides completed work to Lead for testing. Adds 3rd shift productivity to team.

Contact Information
Stephen Goldsmith
BI Practice Director (610)592-0600 SGoldsmith@Biztech.com

Timothy Simkiss, CPA, MBA Hyperion Project Manager Practice Director (610)592-0600 TimSimkiss@Biztech.com