In the new economic reality, retailers need to plan for the short and long-term. However, most organizations fall short of comprehensive Enterprise Planning due to a combination of inadequate tools and siloed processes. Learn how Hyperion Strategic Finance can be deployed to seed operational plans with strategic targets as well as receive the latest forecasts from Planning and Essbase. In addition to integrating the short and long-range planning processes, we will also discuss how true Enterprise Planning should utilize the same reporting toolset to integrate and enhance analytical and reporting capabilities in the planning process.

1. Enterprise Planning
for the Retail Industry
Ricardo Rasche
HSF Practice Director
Edgewater Ranzal
rrasche@ranzal.com
Tel. 312-810-0685
Session ID#8121

2. Agenda
• Introduction
• Hyperion Strategic Finance Overview
• Customer Cases
• Product Demonstration
• Questions & Answers

3. Focus
Services
People
1996 700+/1000
Methodology
Customers
Partnership

4. The Ranzal HSF Practice
• Established through recent acquisition of Meridian Consulting Int’l
• Practice directors with over 35 years of combined experience in
HSF and over 150 successful HSF engagements
• Corporate finance domain experts on Financial Modeling for Long
Term Planning, Scenario Modeling, Funding, Valuation, and M&A
• Extensive experience integrating with Hyperion Enterprise, HFM,
Hyperion Planning as well as extending HSF capabilities with
Crystal Ball and Essbase

5. Strong
Recovery?
?
Slow
2007
Growth?
Best Use of Capital
Global Growth
High Leverage
Commodity Prices UP
Stock Market Boom Another
2008 2009-10
Recession?
Survival Recovery
Credit Crunch Corporate Cost Cutting
Housing Bubble Strengthen Balance Sheet
Global Recession Easing of Credit Markets
Stock Market Crash Economic Stimulus
Bankruptcies

6. CFO Office
Baseline Forecast
+ Initiatives FP&A Group
+ New Projects
+ Acquisitions
Corporate Development
- Divestitures
+ Capital Structure Assumptions
Treasury Dept
+ Debt Detail, Dividends
Strategic Plan

7. Consolidation of Stores and Regions Comp Sales Scenarios
Modeling by Prod Category or Store Type What-If Analysis by Brand or Store Type
Forecasting Store Openings and Closings Evaluating New Store Concepts
Long-Term Ad-hoc
Planning Scenarios
Retail Industry
Solution
Corporate Funding
Development Analysis
Joint Ventures and New Projects Funding Requirements for NSO Growth
Mergers & Acquisitions Debt and Covenant Analysis
Divesting Unprofitable Stores and BU’s Impact on Credit Rating

10. Service Ind. / Financial
Retail Manufacturing Utilities Logistics Higher Ed Metals / Mining
Miscellaneous Services
Stanford University
Boston College
Yale University
Univ. of Vermont
ABG
SUNDAL COLLIER
Healthcare CPG Telecom Life Sciences High-Tech
General Mills

11. Specialty retailer of consumer electronics with revenues of $45B
and 19% market share in the U.S. Also operates in Canada, Mexico,
China, and Turkey
Before After
Technology  Centralized model enabling strategy
 Hard to maintain Excel spreadsheets discussions and target-setting at the
executive level (EVP’s, CFO)
 Difficult integration of historical data
Business Need  Total company view with detail by
business unit, product category, country,
• Consolidated 5-year plan for both
and brand.
domestic and international businesses
 Complete set of financial statements,
• ROIC scenarios by product category
key metrics (incl. ROIC) at each level
(for domestic) and country/brand (for
international)  Baseline, New Store Openings (NSO),
and incremental scenarios for new
initiatives

12. Canada’s largest independent tire dealer
Before After
Technology  Integrated financial statements that
 Time consuming Excel spreadsheets allowed for scenario analysis on both
 Models lacked flexibility and Income Statement and Balance Sheet
accounting integrity  Ability to model new store additions and
Business Need the impact to financials year to year
• Scenario capability around key drivers  Enhanced Inventory, A/R, and Fixed
such as new store openings and sales Asset forecasting at each major
growth rates by product or region business level
• Consolidated long-term plan  Detailed ratios and covenants to
incorporating all major business evaluate ongoing capital structure
entities

13. Fast-food company with $2.5 Billion in revenues. Currently owned
by private equity firm 3G Capital of Brazil (late 2010)
Before After
Technology  Able to understand financial impact of
 Large Excel spreadsheets B/S, CF drivers
 Difficult to maintain and audit  Run scenarios around opening new
Business Need restaurants, royalty rate changes
• Prepare forecast scenarios for IPO  Evaluate comp sales sensitivities
• More visibility into balance sheet and  More visibility into the cash flow needs
cash flow forecasting of each market
• Understand potential impact on  Calculate impact and pressure-test
complex debt covenants complex covenants

14. Product Demonstration

15. NEEDS AND
REQUIREMENTS PLAN AND CUSTOMIZED GO LIVE AND
ANALYSIS DESIGN PHASE BUILD PHASE TEST PHASE TRAINING ROLLOUT SUPPORT
• Current state and • Define a project • Construct • Upload test data • Develop easy to • Review Go Live
stakeholder needs roadmap templates and use reference Checklist
• User validation
analysis models guide
• Determine • Move solution
• Calibrate models
• Identify process, optimal level of • Report / dash- • Develop custom into production
system, and detail and board build-out • Document final training and • Provide on-site
organizational structure process, system, exercises
• Prototype support
components org
• Design docs reviews • Deliver user • Semi-annual
• Detailed work training
• Develop data audits and
plan with interfaces process/model
deliverables reviews
TYPICAL IMPLEMENTATION
Avg project takes 8-12 weeks to implement

16. Questions & Answers