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Hyperion Financial Management at JAC Products

Hyperion Financial Management at JAC Products. Robert DeWolf Chief Financial Officer JAC Products. AGENDA. Introduction Business Issues Business Requirements Implementation Business Benefits Lessons Learned Case Example Future Plans Why Hyperion Question & Answer.

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Hyperion Financial Management at JAC Products

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  1. Hyperion Financial Management at JAC Products Robert DeWolf Chief Financial Officer JAC Products

  2. AGENDA • Introduction • Business Issues • Business Requirements • Implementation • Business Benefits • Lessons Learned • Case Example • Future Plans • Why Hyperion • Question & Answer

  3. SPEAKER INTRODUCTION • Robert DeWolf • Chief Financial Officer • Responsible for the overall implementation of Hyperion • Been with JAC for 15 years • CPA • Eastern Michigan University alumni • Enjoys golf

  4. JAC PRODUCTS COMPANY PROFILE • The world’s leading automotive OEM supplier of functional exterior trim products • Founded in 1967 • Leading designer and manufacturer of OEM roof racks, supplying vehicles worldwide • Owned by Citicorp Venture Capital Ltd. Manufacture products in U.S., Germany, Portugal, Argentina, Turkey and the U.K. • JAC owns Mont Blanc (Sweden) and Paddy Hopkirk (England), which manufactures bicycle and ski racks. • $300 million annual revenue • Headquartered in Saline, MI

  5. BUSINESS ISSUES • Multiple ERP systems and general ledgers • MAPICS, JBA, Movex, Excel • International operations with non-integrated disparate systems • Manual consolidation with spreadsheets and manual process to review work-flow • Consolidation taking up to 3 weeks after month end close • Different FX treatment between US GAAP and Local accounting • Could only perform legal consolidations • Analysis difficult with Excel • Manual data entry and GL adjustments made after the close with no visibility • Summary information only with no ability to drill-down into the numbers • Auditors need detailed financial information with a common format in a timely manner

  6. BUSINESS REQUIREMENTS • Create consolidated financial statements, using both US GAAP and local GAAP • Increase speed of consolidation and make the process easier • Common chart of accounts with common account descriptions • Flexibility in treatment of foreign exchange • US GAAP versus Local • Constant FX rates over multiple periods • Multiple reporting structures • Legal/Management/Geographic/European Community • Monthly report package • Balance Sheet, Cash Flow Statement, Profit & Loss Statement • Variance analysis, Monthly, YTD, Quarterly comparisons and LTM • Robust inter-company elimination capabilities • Source system integration • Implement quickly

  7. IMPLEMENTATION • Started in the US in October 2003 • Went live in the US in January 2004 • Started in Europe in January 2004 • Currently 90% implemented • Did the implementation in their “spare time” • Used Hyperion Services for implementation • Implementation is a success

  8. BUSINESS BENEFITS • Time compression • Old system- 3 weeks to close books • New system- less than a week • Process improvement • Drove changes in Accounting processes, Inventory Costing, Balance Sheet classifications, etc. • Commonized procedures • Better control over close process • Eliminated manual data entry errors • Common reporting format • Dropped Excel reporting in favor of Hyperion Reports • Confidence • Executive management feels better about the quality of the financial statements • Hyperion reports now posted on JAC intranet for Audit committee review • Better able to respond to Sarbanes-Oxley Act requirements • One version of the truth

  9. LESSONS LEARNED • Should have done this five years ago • The more time spent planning the application upfront, the better the implementation • Need to understand your own processes first and challenge them to get to best practices • This was the impetus for formal global accounting policies & procedures • Auditors were happy with because of new policies, procedures, audit trails, and common COA • Need to set up controls within the application security to limit usage of certain reports and web forms • Users have actively embraced the application, which was a pleasant surprise

  10. CASE EXAMPLE • Customer Quotations Process • Global quoting is a requirement for more OEM customers • Costing methodologies were different in US and Europe • Direct labor and fringe benefits calculations applied differently • Overhead computation and application methods were different • Components of Overhead • Treatment of Variances • Allocation Methods • SG&A components were different • Hyperion helped us to understand and correct the costing differences between the US and Europe • Results in a more accurate quote to our customer

  11. FUTURE PLANS • Using Financial Management in other ways • Statistical Reporting • Operational Reporting • Change data extracts and metadata to get to the lowest level of account detail, for more detailed reporting • Product line profitability • Customer profitability • Extract sales and cost of sales data from Future 3 system to eliminate manual entry • Implement Hyperion Analyzer for • Graphical reports • KPI / Executive Dashboards • Expand the message of “one version of the truth” by allowing other departments to access the application

  12. WHY HYPERION • Strong references from: • Board of Directors • Citicorp Venture Group • Hyperion name and presence in marketplace • “You’re the best”

  13. Question & Answer

  14. Thank You Robert DeWolf bdewolf@jacprod.com

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