Hyperion Financial Management at JAC Products

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