Oracle Enterprise Planning Solution using Hyperion Strategic Finance (HSF) and Hyperion Planning

1. Strategic Modeling:
Right Strategic
Decisions, Aligned
with Operating Plans
at Enbridge
October 4, 2017
BusinessAnalyticsSolutionsProvider:EPM,BI,andBDTechnologies
Devin Moore
Enbridge
Andy Starks
Ranzal

2. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Agenda
• About Enbridge
• Prior State Technology
• Enterprise Planning Solution
• What’s Next
• Keys to Success
• Q&A

3. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Enbridge Overview
• Enbridge operates the World’s longest crude oil and liquids transportation system
• Canada’s largest natural gas distributer
• North American leader in the gathering, transportation, and processing of natural gas

4. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Enbridge Business Complexities
• 6 Publicly Traded Companies controlled by Enbridge
– ENB: parent company traded on TSX and NYSE
– EEP: Master Limited Partnership traded on NYSE
– EEQ: Limited Partnership traded on NYSE
– MEP: Master Limited Partnership traded on NYSE
– SEP: Master Limited Partnership traded on NYSE
– ENF: Enbridge Fund Holding Company traded on TSX
• Master Limited Partnership (MLP) Modeling
• Dozens of Debt and Preferred Stock Issuances
• Intercompany Transactions
• Currency Translation
• Complex Ownership Structure

5. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Complex Consolidation Logic – 1 Example:

6. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Challenges with Prior State Technology
• A combination of Excel and Khalix technology presented various challenges
– Khalix did not consolidate, it only aggregated
– Heavily dependent on Excel to collect, aggregate, and reconcile data issues
– Hundreds of Excel files with varying levels of consistency led to errors and time
consuming validation and reconciliation processes
– Manual Elimination Process (up to 2 weeks)
– Reporting was Excel-based. No multidimensional database meant that reporting was
limited and manual in nature.
– Limited automation
– Versioning capabilities were very limited

7. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Project Goals
• Improve technology to provide a more scalable, reliable solution making Khalix redundant and
replacing it with Oracle Enterprise Planning solution
• Integrate detailed Operational Plans for Capital and O&A into the Long-Range Planning and
Corporate Modeling processes
• Reduce data requirements appropriately during the planning process so that modeling activity is not
burdened with unnecessary cost center, entity, or account detail
• Resolve Data Integrity issues as they relate to the use of Excel in a multi-sheet linked environment
• Centralize the collection of data into an enterprise solution whereby calculations and aggregations can
be executed centrally and quickly
• Combine Actual, Operational and Strategic Planning data in an Enterprise Reporting Solution that
empowers end-users with ad-hoc and self-service reporting capabilities

8. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Oracle’s Enterprise Planning Solution

9. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Solution Architecture

10. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Data requirements appropriately reduced with Hyperion Solution

11. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Guiding Principles for Solution Architecture
• Right tool for the right job – while each tool can do many things, architecture is created to
leverage the strengths of each product in the Oracle/Hyperion software stack
• Consolidation and Financing should be done in HSF
• Detailed data capture and aggregation should be performed in Hyperion Planning
• Forecasting applications should only contain data required to support the forecasting
process
• Consolidation of Budgets/Forecasts should not mimic GL/Actuals Consolidation
functionality – each tool has its own unique purpose; avoid over-engineering planning
process to achieve false precision
• Unify all data and reporting in an Enterprise Reporting solution
• Origin of Data should be seamless to end users and report consumers

12. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Current State

13. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Current State - HSF
• Approximately 75 entities modeled and consolidated
• Substantially all debt and equity issuances are modeled
in HSF – across 22 issuing entitles
• Funding requirements are established in HSF
• Master Limited Partnership (MLP) modeling performed
within 3 entities
• Significant iterative involvement from Treasury and Tax

14. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Benefits of Solution
• Took decentralized corporate models across the
enterprise and made centralized
• Allowed for agile debt financing modelling
throughout various level of Enbridge issuers
• Increased variance reporting on various strategic
plans

15. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Implementation Process
• Enbridge partnered with Ranzal to implement their
Enterprise Planning solution
– Analysis and Design Phases with key stakeholders
– Conference Room Pilots during the Build Phase
– UAT facilitation, Training, and Rollout Support
• Continued collaboration with follow-on BU
functionality and integration of recent acquisition

16. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Latest Developments
• $28 billion Acquisition of Spectra Energy in Feb 2017
– Spectra had its own HFM and HP applications that needed to be combined
for the budget and close process
– Functionality in Spectra Excel models needed to be brought into HSF
– FDM used to transform data from Spectra applications to Enbridge
application
• Gas Distribution business group (Toronto)
– Replacement of Khalix and Excel based process with Hyperion Planning
and Essbase applications for Workforce, O&M and Capital Budget,
Forecast and LRP modeling

17. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
What’s Next
• Integrating Legacy Spectra applications
– Replacement of outdated Hyperion Planning applications with new and
optimized Hyperion Planning and Essbase applications for Workforce,
O&M Budget and Forecast modeling
• Evaluate moving to the Cloud

18. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Keys to Success
• HSF and Planning have unique strengths and weaknesses –
make sure to utilize each to maximize its strengths
• Don’t replicate GL or Close hierarchies for the sake of
“consistency”. Planning is a separate business process and
should have metadata that meets its own needs
• Combine Actual, Budget, Forecast, and LRP in an Enterprise
Reporting Solution
• Don’t replicate what you have – strive to build an optimal solution
that maximizes the strengths of the technology

19. Business Analytics Solutions Provider: EPM, BI, and BD Technologies
Q&A