Profitability and Cost Management

1. Oracle HPCM Customer Story
Fully Allocated P&Ls at MasterCard Worldwide
September, 2016
Jonah Rufus William
Business Leader – GBSC Systems

2. 2
• 17 Years in EPM & BI Space
• Consulting
• Managing Financials Systems
• Industry Experience
• Technology
• Retail
• Finance
• Education
• Govt.
• Implemented EPM/BI at
• Mastercard
• DoE Mass
• SGI
• Staples
• AAFES
• Activision
• Hindustan Lever etc.
• Worked at:
• IBM Cognos as EPM Architect
• Oracle Partner as Sr. Principal Consultant
• Mastercard since 2006
Education
Engineer – Electrical & Electronics
MBA – Systems and Marketing
Strategize, Implement and Sustain
Hyperion and BI Platforms
Business Leader | GBSC Systems
Presenter Bio
© 2016 Mastercard. Proprietary and Confidential

3. 1. Hyperion @ Mastercard
2. Business Background & Challenges
3. Solution Overview
4. Business Benefits & Lessons Learned
5. Future Plans
3
Mastercard Customer Story Agenda
© 2016 Mastercard. Proprietary and Confidential

4. 4
Keep things simple and stretch the boundaries, go beyond the general use of Hyperion / BI.
Mgmt. Reporting
Entity
Mapping
Work Force
Product
P&L
2011 2012 2013 2014
Local
Currency
Driver
Local
Currency
Exposure
FX
FTE
SPA - II
Implementation Stabilization Expansion
Budget
Breakout
Performance
Tuning
2015
Commitment
Lights Out
Automation
StratPlan
Customer
P&L
2010
Payroll
Renovation
2016
D&A
Revenue
Attribute
Local Actual
M&A
Cash
Flow
Hyperion
Upgrade
Allocated P&L
Expense
Mgmt. BI
Rev. Rec.
Application Automation / Enhancement / Project BI
Stabilization | Expansion
Fin - BI
Revenue
Expense
A&M Op
Plan - BI
Cur.
Neutral
Hyperion @ Mastercard
© 2016 Mastercard. Proprietary and Confidential
HyperionStats
20 • Hyperion Applications
30 %
40 %
• 2015 Growth In Foot Print
• 2014 Growth in Foot Print
14
• Process Supported Globally
across 12 business units
600 • World Wide Users
1 Monthly Close
2 Strategic Planning
Annual Budget3
Quarterly Forecast4
8 Workforce Planning
9 Monthly Customer P&L (COS)
Quarterly Product P&L (PPL)10
Local Currency Exposure11
Monthly Payroll Process5 Commitment Collection Process12
M&A Reporting6 Managerial P & L13
Cash Flow7 BI Updates14

5. 5
1. Fully Loaded Country P&L
2. Transparent Rules
3. Sound and Simple Methodology
4. Faster System
5. Fit within Hyperion Framework
MasterCard Challenge
© 2016 Mastercard. Proprietary and Confidential

6. 6
1. Prototype in MS Access & Excel
2. Obtain buy in from impacted business
owners
3. Assess solution fit with in Oracle Platform
4. Develop Functional Pilot in Requirements &
Design
5. Implement & Rollout
6. Build Future Roadmap
MasterCard Strategy
© 2016 Mastercard. Proprietary and Confidential

7. 7
Guiding Principle: Tiered approach to attribute Revenue & Margin between Direct/Dedicated and Indirect/Overhead.
1. Drivers – Revenue Based or Metrics Based
2. Actual from Oracle General Ledger
3. M1: Revenues & Directly associated expenses no allocation
4. M2: Dedicated expense mapped to country
5. M3: Support expense allocated to country
6. M4: Overhead expenses allocated to country
7. Actual from Oracle GL gets allocated using the guiding principle
8. Simple rule to produce Tiered P&Ls applied after allocation
9. Validation reports are run to ensure data accuracy
10.Results published via Prebuilt FR or SmartView
MasterCard Solution Overview
© 2016 Mastercard. Proprietary and Confidential

8. 8
Margin 1
Margin 2
Margin 3
Margin 4
Variance
Explanation
Fully Allocated P&L
© 2016 Mastercard. Proprietary and Confidential

9. 9
1. HPCM allocates Costs & Revenue Pools
through one or more stages in a top down
capacity
2. Stage – Step in the allocation process
that has similar pool characteristics
3. Separate stages enable traceability.
Cost CtrAccount* Data Type
GeoDivision*
GeoDivision*
Geo*Division
Stage 1 – Financial Detail
Stage 2 – Fin. Pool
Stage 4 – Tier 2
Stage 3 – Tier 1
Cost Pool
Tier 1 (Div) Allocs or Pass Thru (Direct)
Tier 2 (Geo) Allocs or Pass Thru (Direct)
Sum Account/CC to Cost Pool (Direct)
AccountCost Ctr Data Type GeoDivision GeoDivisionCost Pool
1-3-4 Genealogy Allocation Results
1-3-4 Genealogy
HPCM Model Architecture – Stage Design
© 2016 Mastercard. Proprietary and Confidential

10. 10
1. Planning App to stage, validate inputs and
consume
2. Relational model to contract and expand
data grain
3. Front end to assign rules
4. Prebuilt Tiered report
5. Trace Screens
MasterCard Solution Highlights
© 2016 Mastercard. Proprietary and Confidential

11. 11
1. Trace Screens work at allocation grain
2. Need a reporting solution to make end user
consumption easy
3. HPCM is a maturing product
4. Success or Failure depends on the
partner’s experience – project completed on
time and on budget
MasterCard Lessons Learned
© 2016 Mastercard. Proprietary and Confidential

12. 12
1. Explore use of Management Ledger
• Movement of historical management restatements from the general ledger
• Would require upgrade to 11.1.2.4
2. Product & Customer Profitability migration
to HPCM
3. Delivery of Dashboards to Business Users
using OBIEE
MasterCard HPCM Future Plans
© 2016 Mastercard. Proprietary and Confidential