developing a fully integrated long-range plan
Post on 13-Sep-2014
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Edgewater Ranzal presented how Cenovus Energy transformed their long-range planning (LRP) process through the implementation of Oracle's Hyperion Strategic Finance (HSF). at the Association for Finance Professionals (AFP) 2013 Annual Conference.TRANSCRIPT
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ONE Company, ONE Team:
Developing a Fully Integrated
Long-Range Plan
October 30, 2013 Steve Coverick
Edgewater Ranzal
Strategic Planning
Practice
Kent Sweezey
Cenovus Energy
Corporate Planning
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Agenda
Company Overviews
Long-Range Planning Overview
Development Considerations
EPM Platform
High Level Demonstration
Questions & Answers
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Company Overview: Cenovus TSX, NYSE | CVE
Enterprise value $29 billion
Shares outstanding 756 MM
2013F production
Oil & NGLs
Natural gas
183 Mbbls/d
515 MMcf/d
2012 proved & probable
reserves 3.1 BBOE
Bitumen
Economic contingent
resources*
Discovered bitumen
initially in place*
Lease rights**
9.6 Bbbls
93 Bbbls
1.5 MM net
acres
P&NG rights 5.5 MM net
acres
Refining capacity 229 Mbbls/d
Values are approximate. Forecast production based on midpoints of the July 24, 2013 guidance document. Cenovus land at December 31, 2012. *See advisory. **Includes an additional 0.5 million net acres of exclusive lease rights to lease on our behalf and our assignee’s behalf. © 2013 Cenovus Energy Inc.
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Volumes are shown before royalties and net to Cenovus. 2013F based on midpoints of the July 24, 2013 guidance document. 2014F - 2023F based on future price assumptions as noted in the advisory. Forecast volumes are estimates only and subject to regulatory and partner approvals. See advisory. © 2013 Cenovus Energy Inc.
Company Overview: Cenovus Mbbls/d
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Company Overview: Edgewater Edgewater
Founded in
1996
Essbase
Acquired
Vertical Pitch
2007
HFM/
FDM
Acquired
Meridian
2010
HSF
Planning
2001
Planning
Build
OBI Team
2011
OBIEE
Ranzal
Build DRM &
HPCM Teams
2009
DRM &
HPCM
► NASDAQ: EDGW
► The Boston Globe’s Top 100 Business
► Top 500 fastest-growing stocks on Wall Street
► One of the largest Full-Service Oracle/Hyperion EPM and BI practices
► Oracle Platinum Partner
► Multiple Oracle Partner of the Year awards
► Premier Consulting Services in North America and Europe
Acquired by
Edgewater
2004
Data
Integration &
Warehousing/
CRM/
Web 2.0
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Company Overview: Edgewater
Consolidation
Business
Intelligence
Planning
Infrastructure
Training
Support
Services
Data
Services
Project
Management
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LRP Overview: Purpose
Stewardship and Capital Discipline
Collaboration Sensitivity
and Scenario Analysis
Budget Foundation
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LRP Overview: High Level Process
Executive Guidance
Forecasts and Analyses
Review and Communication
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LRP Overview: CP’s Role
• Corporate forecast model
• Data sources integration
• Financial and operational reports
• Sensitivity and scenario analyses
• Reporting consistency
Budget Outlook LRP
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LRP Overview: Challenges
• Complex and segregated spreadsheets
• Cumbersome scenario analyses
• Limited documentation
• Version control
• Duplicated efforts
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Development Considerations
• Spend time on model design
– Actuals Outlook/Budget LRP integration
– Understand routine / non-routine transaction impact
– Focus on strategic imperatives
– Corporate hierarchy views (i.e. legal vs mgmt)
– Customized handling of data sources
– Naming convention
– Global assumptions
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Development Considerations
Documentation
360o training
Micro and Macro Testing
Flexibility
Integration Maintenance
Global Sensitivities
Customized Reports
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13
Essbase
EPM Platform: Integration
HSF
Other Inputs
Ops Planning
Hyperion Planning
Excel Reporting
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EPM Platform: HSF
Corporate Development
Value Management
Long-Term Financial Planning
Treasury Strategies
Predictive Modeling & Simulation
Long-Term (3-5 Year)
Full Financial Statement
Projections
Key Performance Metrics
New Product Offerings
Acquisitions / Divestitures
Discounted Cash Flow
Economic Value Added
Liquidation Value
Capital Structure
Debt Issuances/Payments
Covenant Analysis
Credit Ratings
What-if
Analysis
Economic Shifts
Commodity Pricing
Product Pricing
Growth Initiatives Capacity Planning
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High Level Demonstration
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Pre-Built Accounting Integrity
• Pre-built, fully integrated financial statement foundation
• Pre-built forecast methods and formula functions
• What-if Analysis toolkit
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Powerful Scenario Capabilities
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Easily Analyze Various Combinations
Mix and Match Scenarios
Capital Projects included
Acquisition excluded
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World Class Treasury Analysis
• Calculates net cash surplus or deficit from multiple models and scenarios
• Funding Options tool to re-allocate surpluses and fund deficits
• Debt scheduler
• User-defined reports to monitor covenants, credit ratings, and earnings per share
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Acquisition/Divestiture Modeling
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Set Strategic Targets in HSF
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Align the Planning Process
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Seed Budgets with Strategic Targets
From
Strategic Plan
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Tweak Budget with Targets in Mind
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Update Targets with Latest Forecast
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Cenovus Forward Looking Information
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Cenovus Oil & Gas and Financial Information