Financial Systems Program
Planning and Reporting Project
Rick Cooper
Director – M-Power Solutions
Project Manager – Planning & Reporting Project
September 08

Agenda
• Introduction
• Xstrata Overview
• Program/Project Overview
• Project – timeline, team
• Technical – architecture, applications
• Application screenshots
• Challenges & Lessons Learnt
• Q&A

Xstrata the company
• A major global diversified mining group
• Headquartered in Switzerland
• Listed on London and Swiss stock exchanges
• Top 20 in FTSE 100
• Market cap of about US$70 billion
• Employs 56,000+ people worldwide
• EBIT of US$4.5b for 6 months to June 30 2008
• Divided into commodity businesses (Coal,
Copper, Zinc, Nickel, Alloys etc)

Significant Growth

Market Position

Xstrata Copper - Overview
• HQ in Brisbane
• Operating divisions in Australia, Canada, Peru,
Argentina and Chile
• Produced 1m tonnes Copper in 2007/8
• 4th largest copper producer
• EBIT US$2.2b for 6 months to June 30 2008
• Aims to double production in next 5-7 years

Xstrata Copper - Overview

Program Overview
• Xstrata Copper management were seeking to improve their finance
systems (ERP, Sales, Planning, Reporting etc)
• The Planning & Reporting project is part of the Finance Systems
program of work.
• The other projects in the program of work include:
• Common Chart of Accounts
• Business Separation
• Sales & Logistics
• Ellipse merge and demerge projects
• HFM implementation
• The key objectives of the P&R project are to:
• Ensure a consistent process
• Improve the efficiency of the process
• Ensure the accuracy of information
• Ensure the business has a better understanding of business drivers
and business performance

Why Hyperion/Oracle?
• Xstrata already had exposure to Hyperion and Oracle products
• Seen as the market leader – provided capability beyond just
pure planning through the reporting and analysis tools
• Proven technology – many other companies were already
implementing Hyperion Planning, including mining companies
• Scaleable solution – would be able to grow as the company
grows
• Successful pilot site and tool verification process
• Positive feedback from Xstrata personnel attending the
Hyperion conference to evaluate tools
• Skills and support available in the market

Project Overview
• Core functionality:
• Operating Cost estimating and budgeting – variable costs,
employees, capex etc
• Basic physical modelling for cost drivers
• Life of Mine financial modelling
• Variance Analysis – PVE, EBIT
• Oracle data warehouse for provisioning actuals
• Reporting
• Centralised development team, global rollout through the 5 operating
divisions in a staged manner
• Distributed architecture – each division has their own software,
hardware and applications
• User numbers will reach 800 by project end
• In effect working to a template, making future implementations quicker
and more cost effective

Project Timeline
Scoping
Tool
Verification
Pilot Site
Argentina
Australia
Chile
Peru
Canada
Benefits Realisation Initiatives
Jun 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09

Typical Divisional Project Timeline
Analyse/Plan
Agree Scope Design/Build
Business Requirements
Application Design Test/Train/Rollout
Order hardware
Application Build
Lock in resources Unit Test/UAT
Reports Build
Software Installation User Training
Data Integration
Project Plan Parallel Run
Data Reconciliation
Communication Strategy Go Live/Support
Jan 08 Mar 08 May 08 Aug 08 Oct 08 Dec08

Divisional Project Team
Steering Committee
Program Manager
Project Manager Key Stakeholders
Finance, HR,
40%
Operations etc (5%)
Functional Business Analysts /
Hyperion
Consultant/Project System IT Support
Consultant
Co-ordinator Administrator
Servers (ad hoc)
100% 100% 100% DBA (ad hoc)
Comms (ad hoc)
DW Consultant
100%

Project Team Roles & Responsibilities
Internal Resources
• Understand requirements
• Data mapping, migration and reconciliation
• Reporting
• Training
• Becomes the administrator
Project Management
• Stakeholder engagement
• Communication, training and rollout plans
• Co-ordinate the moving parts – requirements, build etc
• Ensure sign-off of plan and documentation
• Quality Assurance (QA)
• Part time role
Build Consultants/Functional Consultant/Coordinator
• Software installation
• Requirements
• Design & Build
• Data Integration
• Knowledge transfer to internal resources
• Onsite liaison

Architecture
Version information:
•Hyperion Planning v9.3.1
•Oracle v10.2
Note:
•Ellipse and HFM
integration achieved via
FDM

Applications
LOM Application
• Hyperion Planning at Xstrata
Copper contains 4 applications, Capex
each providing distinct
LOM & KPI
functionality:
Costs Application Capex Application
• LOM – Financials and KPI
reporting
Sales
Costs Employees Projects Capex
• Capex – capital expenditure
and depreciation
Stats Application
• Costs – operating costs,
including fixed, variable and Drivers
employee costs
Physicals (S&OP) Sales & Marketing
• Stats – physical related
information such as S&OP,
equipment hours, metres etc

Hyperion Screenshots

Login

Workspace

Physicals Planning

Variable Cost Planning

Variable Cost Planning

Headcount Planning

Fixed Cost Planning

Profit & Loss

Dashboard Reporting

Charts

Standard Reports

Smart View

Support Process
Power User/Finance •Important to define and
Reps
communicate support process early
Level 1 in the project
•In general, finance users should be
Application Owner /
Administrator the first level of support
Level 2 •If they cannot resolve the issue, it
is passed onto the administrator
who may be part of finance or
M-Power Solutions Hyperion Support business systems
Level 3
•And then onto the 3rd party support
provider or direct to Hyperion
support

Challenges/Lessons Learnt
• Time zone
• Language barriers
• Keeping it simple
• Performance
• Quality of source data in ERP and other systems
• Challenges with some design elements – performance, usability, etc
• Managing expectations around what the tool can/can’t do
• Competing projects – impact on timelines and capacity of internal
resources
• Demands on internal resources – month-end, budget cycle
• Defining Roles and Responsibilities
• Avoid the big bang approach – implement in components or in a stage
gated manner

Next Steps
• The project is now entering the benefits realisation phase.
• The implementation of the Planning and Reporting project provides a
platform to drive benefits through the business
• The business now needs to develop functionality to meet operational
needs
• Key benefit realisation activities are:
• Improved trend and comparative analysis based on appropriate
drivers
• Improved KPI alignment and reporting
• Value Driver Trees
• Price, Volume and Efficiency analysis (PVE)

Questions & Thank-you
Rick Cooper
Director – M-Power Solutions
rick.cooper@mpowersolutions.com.au