Agenda

• Overview of Enron Wind Business Issues • Discussion of Value Hyperion Would Provide to Address • Demonstration of Hyperion• Q & A• Technical Discussion with Angie• Gather Additional Information for Implementation Plan• Review Project Plan Time Line• Next Steps

Enron Wind Business Issues in Financial Consolidation, Planning, & Reporting

Augmenting the Capabilities of the Enron Wind Transaction Systems• Enron Wind has Multiple

General Ledgers• Must integrate data

from multiple sources

• Must manage through system transitions

• GL and transaction systems are designed for OLTP, not consolidation, planning, and analysis

• Need to integrate the plan into the process

• Need advanced reporting, analysis, modeling and planning capabilities

SAP

DataWorks

Oracle

GSB

Spreadsheets

AnalyticApplications

Financial Consolidation – It’s More Than Just Adding Up Numbers• Data collection — multiple

sources• Manual data entry• Consolidation

• Currency translation (FAS 52, euro)

• Intercompany eliminations and adjustments• Proportional ownership calculations

• Top-side adjustments

• Reporting, analysis and modeling• Management, legal, statutory and tax

• Segment reporting (FAS 131/IAS 14)• Comparative and trend analysis

• Organizational and ownership modeling

Financial Consolidation

Complicated by Organization Structure

Local Regional Central

MonthlyForecast

AnnualBudget

ERP/GL

Input/LoadSubmitValidate

Input/LoadSubmitValidate

Input/LoadSubmitValidate

HFM

• Review

• Approve

• Adjust

• Consolidate

HFM•Review

•Approve

•Adjust

•Consolidate

•Intercompany

•Currency

PublishReports

Approve

Reject

SECTax

LegalTreasury

Management

Submit

Reject

Reject

Approve

Approve

Approve

Monthly/Quarterly

Actual Results

Includes Geographic Challenges

Everybody Needs Financial Information

SALES

FINANCESALES OPERATIONS FINANCE

By product, by sales rep.

Sales DB

By distribution code, by region

Ops DB

Financial, SEC, Tax, Legal

GL DB

$105,400 $90,897 $97,621.09

Everybody Needs Financial Information

SALES

FINANCE

$97,621.09

SALES OPERATIONS FINANCE

$97,621.09 $97,621.09

ANALYTIC PLATFORM

By product, by sales rep.

Sales DB

By distribution code, by region

Ops DB

Financial, SEC, Tax, Legal

GL DB

Additional Enron Wind Pains

• Multi-entity consolidation is difficult: • Various planning currencies;

• Organization changes and restructuring; • Segment-reporting requirements.

• Need to access the European detail.• Increased pressures to provide timely and

accurate financial forecasts – now not time to analyze and less than an hour to ask questions after e-mailing spreadsheets back and forth.

• Distributed systems = many “versions of the truth”.

• Difficulty reconciling. Need to centrally integrate all financial information.

• Reduce deployment and maintenance costs.

“Whereas before reporting and analysis could take days to accomplish, we can now have our information in less than 2 hours with Hyperion. We now have much more time for value-added activities and projects. In addition, the system only took 10 weeks to build.”

Jack Tate - Controller

Santa Fe Snyder Corporation

Hyperion’s Market Leadership

#1 in Financial Consolidation

#1 in OLAP

#1 in Budgeting & Planning

#1 in Financial Analytics

Market Leading CFO’s Use Hyperion

•Winners of CFO Excellence Award – October 2000 CFO Magazine

• Larry Kellner – Continental Airlines

• Richard Kelson – Alcoa

• Larry Carter – Cisco Systems

• Judy Lewent – Merck

• Paul Liska – St. Paul Companies

• Joe Martin – Fairchild Semiconductor

• Kim Patmore – First Data

• Stephen Shindler – Nextel

• Mark Swartz – Tyco

• Jeff Henley – Oracle

• David Willey – Capital One

Market Leading CFO’s Use Hyperion

•Winners of CFO Excellence Award – October 2001 CFO Magazine

• Daniel E. Berce – AmeriCredit Corp.

• Andy Bryant – Intel Corp.

• Robert C. Gray – Highmark Inc.

• Matthew Hart – Hilton Hotels

• James A. Lawrence– General Mills

• Chris A. Lewis – Jabil Circuit Inc.

• Kenneth E. Lonchar – Veritas

• William A. Longbrake – Washington Mutual Inc.

• David A. Viniar – Goldman Sachs & Co.

”Hyperion has allowed us to grow…what we had in place before would not have allowed us to support our 40% annual growth rate…The big reduction in closing time also allows quicker response to outside financial analysts"

Joe Winkler,Executive Vice President & CFO, VarCo

The Goal: High Value + Reduced Cycle Time

• Faster Closings

• More Time for Analysis

• More Detailed Management Information

• Integration of Plan into the Management Cycle

• Improved Business Performance!

Plan Close AdjustmentsCurrency

I/CSubsidiaries

ReportManagement

LegalExternal

Analyze

ReportingModeling

Strategic Planning

Analysis

Strategic / Collaborative

Management

Cycle

Reporting

Analysis

Modeling

• Financial Intelligence

• Time Intelligence

• Calculations

• Scalability

• Performance

• Flexibility

• Deployable

• Business Terms

• Read/Write

OtherLegacyG/LData Warehouse

CRM

Performance Measurement

Graphical/Traffic Lighting

SpreadsheetProduction

Reports 50+ Tools

Java 2 EEApplications

ERP

Web

Enterprise Analytical Platform

Planning

Hyperion Leadership: Energy

APACHE CORPORATION

Global Marine, Inc.

Hyperion – The Right Business Analysis Partner

• 7000+ customers with more than two million users

• 350+ partners

• $500+ million in annual revenue

• 2400+ employees in 43 offices in 26 countries

• 85 of Fortune 100, 365 of Fortune 500 and over 40% of Financial Times European Top 100 use Hyperion’s analysis solutions

• 98% renewal rate

Hyperion Demonstration

Enron Wind Technical and Architectural Discussion

Technical Benefits

Features

• n-Tier Technology for High Scaling

• Full operational capability through web

• True thin-client - zero footprint

• RDBMS storage - 24/7, rollback and recovery

• Leverages NT Security

Benefits

• Scale to 1000s of Users

• Modify Metadata remotely

• Nothing to install/maintain on client

• Meets IT Standards

• Single point of Security maintenance

Web Architected/Advanced Technology

• Hyperion Financial Management was built from scratch for the Web.

• All end-user tasks can be executed on a central database over Web (data entry, loading, consolidating, reporting, etc.)

• Meta-data management can also be executed over the web.

• Sever based application functionality- true thin client.

• High Scalability - 1000s of Users

• High performance plus RDBMS!

Other Key Features

• Process Management• Formal process control is available with different levels of approval security

from “first pass” to “published.”

• Powerful Reporting• Easy to use, object-oriented reporting for highly formatted reports. Excel

addin for ad hoc analysis..

• Seamless GL Integration• Direct links to major ERP systems and other data sources.

• Unified Solution• Allows for complete support of the financial and performance management

cycle.

Hyperion's Market Leadership

• Hyperion wrote the book on the financial consolidation, reporting, and analysis market.

• More than 20 years of experience has gone into building Hyperion Financial Management: the same support, research and development, and worldwide Services teams that made Hyperion the Market-Leader.

• Hyperion Financial Management is a low-risk, high return product.