Hyperion - Oracle EPM Overveiw

EPM System Release 11.1.2 Tobin Gilman – Sr. Director, Product Marketing Thomas Kurian – Executive Vice President, Product Development April 2010

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

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Agenda

• • • •

Oracle’s EPM Vision What’s New in EPM System Release 11.1.2 Customer and Partner Benefits Summary and Questions

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Oracle’s Enterprise Performance Management System and Vision

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Complete, Open, Integrated, Best of Breed

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Oracle Fusion Middleware Complete, Open, Integrated, Best-of-Breed

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Oracle’s Enterprise Performance Management System Complete, Open, Integrated Interactive Reporting & Dashboards Publishing

Ad-hoc Analysis

Detect & Alert

Office Mobile & Disconnected Integration

Financial Close & Reporting

Planning & Forecasting

Profitability Management

Strategy Management

Search

Embedded

BI Applications

Common Enterprise Information Model Business Intelligence Foundation

Fusion Middleware

OLTP & ODS Systems

Data Marts Data Warehouse OLAP Cubes Database Machine

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Oracle, PeopleSoft, JDE Siebel, SAP, Custom

Excel XML

Business Process

Oracle Positioned in Leaders Quadrants Gartner Magic Quadrant for Corporate Performance Management Suites

Magic Quadrant for Business Intelligence Platforms, 2010 Magic Quadrant for CPM Suites, 2010 Magic Quadrant for Data Warehouse Database Management Systems, 2010 Source: Gartner, Inc., “Magic Quadrant for CPM Suites, 2010” by Nigel Rayner, Neil Chandler, John E. Van Decker, 25 January 2010. This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from Oracle.

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World’s Leading Companies use Oracle EPM

10 of the Top 10 in Financial Services

8 of the Top 10 in Oil & Gas

10 of the Top 10 in High Tech

10 of the Top 10 in Utilities

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10 of the Top 10 in Healthcare and Pharma

10 of the Top 10 in Communications

10 of the Top 10 in Aerospace and Defense

10 of the Top 10 in Transportation

World’s Leading Companies use Oracle EPM

10 of the Top 10 in Financial Services

10 of the Top 10 in High Tech

10 of the Top 10 in Healthcare and Pharma

10 of the Top 10 in Communications

10 of the Top 10 in Aerospace and Defense

10 of the Top 10 in Transportation

83% of Fortune 500 use Oracle EPM

8 of the Top 10 in Oil & Gas

10 of the Top 10 in Utilities

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EPM Challenges Today Cross-functional Cross-functional Alignment Alignmentin in Planning Planning

Predictable Predictableand and Compliant Compliant Processes Processes Transparency Transparencyand and Accuracy Accuracy in inFinancial Financial Reporting Reporting

Enterprise Enterprise Integration Integration

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Oracle EPM Product Strategy Key Strategic Themes Enterprise Enterprise Planning Planning

Solution depth and breadth to address planning and profitability management needs across the Enterprise

Financial Financial Close Close

Comprehensive solution for Financial Consolidation and Close

Financial Financial Reporting Reporting

Streamlined creation and delivery of external/statutory and internal financial reports

Enterprise-class Enterprise-class Solutions Solutions

Enterprise-class scale, performance and manageability, and Integration with enterprise systems

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What’s New in Oracle EPM System Release 11.1.2

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Oracle EPM System Release 11.1.2 Extends Oracle’s Market Leadership Extend ExtendPlanning PlanningReach Reach Across the Enterprise Across the Enterprise

Streamline StreamlineEnd-to-End End-to-End Financial FinancialClose CloseProcess Process

Improve ImproveTimeliness Timelinessand and Confidence in Financial Confidence in Financial Reporting Reporting Deliver DeliverEPM EPMValue Value Faster, Reduce Cost Faster, Reduce Costof of Ownership Ownership

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Extend Planning Reach Across the Enterprise

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Planning and Budgeting Challenges • Enable planning for today’s dynamic and matrix organizations • Simplify planning tools for expanded business user adoption • Ensure best practice adoption through embedded domain knowledge • Provide visibility into key drivers of costs and profitability

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Oracle Hyperion Planning Streamlined Planning and Forecasting • Intelligent Approval Workflows • Vary workflow by scenario/version • Pre defined promotional path • Data driven promotional path • Zero-code Web Forms for Business User Productivity • Conditional formatting and process-based data validation • Ad hoc web data entry forms • Freeze, Sorting and filtering • Member Selector enhancements

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Oracle Hyperion SmartView for Office Designed for the Business User • Users Manage Planning Tasks in Familiar MS Office Environment • Task based workflow • Traffic lighting & data validation • Approval process management • MS Outlook Integration • Manage tasks from Outlook Calendar

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Oracle Hyperion Public Sector Planning and Budgeting New ! Purpose-Built for Public Sector Needs • •

• • •

Packaged application for public sector organizations Support for management of complex budgetary processes High quality budget book preparation Advanced position budgeting capabilities Bi-directional integration with ERP data sources

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Oracle Hyperion Profitability and Cost Management Improve Insight into Profitability by Customers, Products • Fast growing EPM application with significant new customer wins and deployments globally • New for HPCM in release 11.1.2 • Expanded cost and revenue driver functions • Improved model navigation • Significant performance gains

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Optimize Product Mix to Maximize Profitability Regional bank serving 19 Western and Midwestern states and 4 million households. Over $60B in assets with more than 10,000 employees. Before

After


IT resources demand exceeded capacity for profitability reporting
Needed business users to drive profitability modeling
Lack of insight how shared costs impacted economics of the business
Challenge to optimize product mix that maximizes bank profitability


Minimal IT involvement

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Easy integration into EPM system infrastructure
Ability to offer a basket of products by mixing and matching products according to customer demographics
Benchmarking costs for developing and marketing new products

Streamline End-to-End Financial Close Process

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Financial Close Challenges • Streamline the period-end close cycle • Ensure visibility and predictability in financial consolidation and close • Integrate with GRC systems to provide transparency and control • Control audit costs

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The End-to-End Financial Close Process

Close sub ledgers into GL (AR, AP, FA, etc.)

Gather and validate complete data sets to support all financial reporting needs

Perform Reconciliations and Post Accruals

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Deliver self service financial reporting to the organization

Automate consolidated financial reports leveraging multiple hierarchies and calculations

Automate and deliver external & statutory filings

Create external reports with disclosures and financial data

Oracle Hyperion Financial Close Management Streamline the End-to-End Close Process • Full visibility into enterprise-wide close process • Close calendar and unified task list • Dashboards for trending analysis and process improvement • Improved accountability for predictable close • Workflow integration across systems & manual processes • MS Outlook integration • Built on proven Oracle Fusion Middleware technologies Copyright © 2010, Oracle and / or its affiliates. All rights reserved.

Improving Extended Financial Close Process Customer Profile

Publicly-held, global industrial manufacturing company with $15B in revenue and over 100 locations.

Before

Expectations After


15 Divisions with ERP/GL instances
Hyperion Financial Management for Financial Consolidation and Reporting
Quarter-end close takes 15 days
Multiple reports, spreadsheets and text documents required for 10Q filings


Deploy Oracle Hyperion Financial Close Management

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Eliminate bottlenecks at division level
Reduce quarter-end close process from 15 to 10 days
Streamline creation of quarterly regulatory filings

Integration with Oracle GRC Solution Improve Financial Governance and Control Oracle GRC Manager Oracle/PSFT Financials HFM Application Oracle/PSFT Financials Oracle GRC Controls

• Financial Auditing Solution • Integrate HFM account balance data into GRC Manager • Assess materiality of internal control issues and prioritize remediation

• Segregation of Duties Solution • Single point of maintenance for users, groups, roles etc across ERP and HFM • Avoid potential violations in segregation of duties

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Improve Timeliness and Confidence in Financial Reporting

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Financial Reporting Challenges • Meet new disclosure requirements e.g. XBRL mandate from SEC • Ensure financial reporting quality • Address all external/statutory and internal reporting needs • Manage costs related to financial reporting and filing

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Financial Reporting Remains Inefficient & Error-prone Today

Disclosure Management • Inefficiencies from manual processes • Creation and management of critical documents - debt covenants, 10Q/K, board package etc. • Gathering and managing commentary • Adjustment of financial data • Errors and loss of control from outsourcing • MS Word documents sent to publisher for EDGAR filing • XBRL tagging done by 3rd parties • Detailed tagging requirement raises liability exposure

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Oracle Hyperion Disclosure Management Statutory Reporting Made Simple • Author statutory documents from Smart View for Office • MS Word and Excel for authoring • Direct integration with HFM and Essbase • Support for all required report formats: MS Word, HTML, PDF • Embedded XBRL tagging support • Taxonomy Management • Instance document creation and validation

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Reducing Costs and Efforts in Financial Filings Customer Profile

Financial Services company with over $4B in revenue and 10,000 employees

Before

Expectations After


Single instance of Oracle EBusiness Suite Financials and ERP
Multiple reports, spreadsheets and text documents required for 10Q filings
Spends $5-10K per quarter on SEC filings with 3rd party publisher


Deploy Oracle Hyperion Disclosure Management

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Streamline creation of quarterly regulatory filings and reduce errors
Bring XBRL tagging process inhouse to improve control and accuracy
Eliminate 3rd party publishing costs

Oracle Essbase Analytics Link for HFM Powerful Analytics on Consolidated Data • Delivers Essbase analytics on live HFM data • Extend the data model • Integrate additional data sources • Fulfill analytic needs with no impact on consolidation server • More users, more reports, bigger queries • Fast reporting performance • Simple and automated implementation • Real-Time or on-demand integration with HFM

HFM Application

Oracle Essbase Analytics Link Oracle Essbase

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Deliver EPM Value Faster, Reduce Cost of Ownership

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EPM Technology Trends • Shift from spreadsheets and point solutions to integrated EPM suites • Continued need for Finance control with integration into BI, ERP and GRC applications • Need for enterprise-class scalability, performance and manageability • Recognition of enterprise dimension management as core EPM enabling technology

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Oracle Hyperion Financial Data Quality Management Enabling Seamless Metadata and Data Integration Data Sources

FDM ERPI

E-Business Suite E-Business

FDM

Suite Data & Metadata

.

Data & Metadata

Essbase

PeopleSoft

ODI SAP

File-based data XLS, Text, XML

Reporting

EPM

HFM

Data & Drill-back

Smart View Financial Reporting

HP HSF

Common Staging DB

•New in release 11.1.2 • Enhanced EBS, PSFT & Essbase drill-through and write-back • Localization

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Oracle Hyperion Data Relationship Management Enterprise Dimension Management • Highly differentiated offering enabling hierarchy and dimension management for EPM applications • New in EPM release 11.1.2 • Full-feature, browser-based user interface • Internationalization • Role-based user access • Improved navigation

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Oracle Essbase Enterprise-class Manageability • Industry-leading analytics engine with built-in financial intelligence • New in Release 11.1.2: Fusion Middleware Integration for enterprise-class manageability • Oracle Enterprise Manager • Oracle Single Sign-on and Security integration • Oracle Diagnostic Logging • Oracle OPMN Failover

Oracle Essbase

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Customer & Partner Benefits

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Benefits to Existing Hyperion Customers What Conseco is Saying “As a customer who’s deployed a number of Oracle Hyperion applications we are excited about the new modules. The new financial close management module will enable us to better coordinate our closing process across different departments, transactional systems and EPM applications. We also like the new disclosure management module, which leverages Oracle’s existing EPM applications and is designed to support a broad range of reporting and filing requirements. Overall, we are impressed with Oracle’s approach and we look forward to evaluating the new products.” Russ Bostick EVP of Technology and Operations

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Benefits to Existing Hyperion Customers What Bank of the West is Saying “Having a centralized point of management for analytic dimensions is essential for ensuring consistency across our EPM, BI and transactional applications. The new Web user interface in Oracle Hyperion Data Relationship Management will make the application much easier to deploy to business users and will make it easier for them to learn and use.” Derek Andrucko VP Financial Information and Data Systems Administration

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Benefits to Oracle ERP Customers • Leverage ERP investments with meta data & data integration and drill-through • Improve speed and accuracy of financial reporting with financial close & disclosure management modules • Enhance planning and budget management and drive enterprise-wide planning

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Oracle E-Business Suite

PeopleSoft Enterprise

Benefits to SAP Customers • Leverage SAP investments with pre-built data integration and drill-through • Improve speed and accuracy of financial reporting with financial close & disclosure mgmt modules • Improve user productivity and reduce reliance on IT

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SAP

Excellence in Financial Close with SAP Oracle Hyperion Financial Management One of the world’s largest food companies operating in over 100 countries with revenues of $14B annually.

Before • Two regional SAP instances

After

• 14-20 days to close

• Massive business transformational change

• 19 levels of hierarchy; 370 base entities

• Consolidate in day 7; Financials on day 9

• No standard chart of accounts

• Developed standard reports for closing process

• Data load was inconsistent & manual • No single system for GAAP and management reporting needs

• Automated management reporting for many levels of management

• Manual I/C reconciliations

• Automated data extract and load processes

• Over-reliance on spreadsheets

• Root cause analysis on all AJE’s

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Oracle’s EPM System: Complete, Open, Integrated Feature

Oracle

SAP

IBM

Core planning and consolidation apps










End-to-end close process support




Functional breadth of planning modules




Financial hierarchy management




Integrated XBRL support




Integration with Oracle & SAP ERP




Common MS Office interface




Common administration




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Oracle Hyperion Enterprise Planning Suite Integrated Offering to Address Enterprise-wide Needs in Planning and Profitability Management

• Hyperion Planning • Hyperion Strategic Finance • Hyperion Planning Modules: Workforce Planning, Capital Asset Planning, Integrated Operational Planning & Margin Planning • Hyperion Profitability & Cost Management

Hyperion Enterprise Planning Suite

• Essbase (restricted use) • Hyperion Financial Data Quality Management (option) • Hyperion Data Relationship Management (option) • Crystal Ball (option)

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Oracle Hyperion Financial Close Suite Integrated Offering to Address End-to-End Needs in Financial Close and Reporting

• Hyperion Financial Management • Hyperion Financial Data Quality Management • Hyperion Financial Close Management • Essbase (restricted use)

Hyperion Financial Close Suite

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• Essbase Analytics Link for HFM • Hyperion Disclosure Management (option) • Hyperion Data Relationship Management (option)

Summary • Oracle Enterprise Performance Management System Release 11.1.2 Helps Organizations: • Plan for Growth and Profitability • Improve Stakeholder Communications • Deliver EPM Value Faster • Extends Oracle’s market-leading EPM offering • New Applications and Significant Enhancements • Most Complete and Integrated EPM System • Generally Available April 2010

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