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Corporate Finance SeriesPROFITABILITY &COST MANAGEMENT

Oracle Hyperion Profitability & CostManagement (HPCM)

Value Propositions

Christian Kobel, Olivier Parchet

PebbleAge SA

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Towards Profitability Analysis Workflow

EssbaseCalculationCube

EnterprisePerformanceManagementArchitect

RDBMSSQL ServerOracleDB2

ReportingCube withAllocationGenealogy

MetadataManagement

AllocationModel

Definition

Cost & RevenueAllocation

CalculationsProfitability & Cost Analysis

ManageDimensionHierarchies

Create & ManageBusiness Model

Allocation Rules

Automated CalcScript Generation

Store Cost, Revenue& Driver Data

Calculate Model &Store Results

S9 BI+, Web Analysis,Financial Reporting

Profitability Analysis

Cost & RevenueContribution Analysis

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Value Proposition 1LEVERAGES many Oracle EPM suite Components

Part of EPM platform, integrated with Hyperion financial applications

BPMA, Centralized metadata management

BPMA, Data synchronization

FDQM, Data Load

Planning, Driver Based Planning

HFM , Allocations, Tax Reporting

HSF, Key profitability drivers

Leverages Oracle EPM Suite BI+Components:

Essbase

Smartview XL add-In

Web Analysis Financial Reporting

More in the future

Data Warehouses Transactional Systems Performance ManagementApplications

AllocationModeling

CalculationManagement

TraceabilityMaps

Essbase

Profitability and Cost Management Core Engine

EPM WORKSPACE

Web AlertsOffice MobileDesktop Search

BI+ Foundation

FinancialReporting

Web Analysis OBI EE

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Value proposition 2Custom Cost & Revenue Allocations is now possiblenot only ABC/ABM methods !

Set calculationorder ofstages

New stage

Up to 9 free allocation Stages Support for any allocation methodology Cascading service department allocations

Activity Based Costing, Time Based ABC

Revenue sharing & promotions allocations

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Value Proposition 395% of Allocations made with generic Formula Typesno more programming !

Formula Type Formula

Simple CalculatedDriverValue = FixedDriverValueSimple Weighted CalculatedDriverValue = FixedDriverValue * Weight

Variable CalculatedDriverValue = Rate * Quantity

Variable Weighted CalculatedDriverValue = Rate * Weight * Quantity

Fixed and Variable CalculatedDriverValue = FixedDriverValue + (Rate * Weight * Qtity)

Even CalculatedDriverValue = 1

Percentage CalculatedDriverValue = FixedDriverValue; TotalDriverValue=100

Custom CalculatedDriverValue = User-defined formula

The formula variables available for a driver depend on theformula type you select. There are eight Standard formula types.

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Value Proposition 4Cost & Profitability Model Validations embedded !

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Value Proposition 5Tracing Cost & revenues, do you prefer this way ?

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Value Proposition 5Or that way ?

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Value Proposition 6Managing Calculations and much more with fullEssbase Profitability Datamart capabilities

Import data View and edit data

Calculate model

Run Driver Data reports

Deploy to Essbase

Run Stage Balancingreport

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Value Proposition 7New Performance Management reporting with fullOracle BI+ capabilities

Profitability measurement of each business segmentWho are the most and least profitable customers?What products contribute the most to the bottom line?Does customer or product profit vary by region?

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Value Proposition 8Driver Based Profitability The next step for Enterprise Planning

By focusing attention on

the key operational activities and

drivers that truly drive results,

businesses are becoming more agile

and adaptive.