Overview of FPM Solution

1. Overview of FPM Solution David Morton Financial Performance Management

2. BetterOutcomes SmarterDecisions Actionable Insights Business Analytics Relevant Information

3. Analytics-driven organizations outperform Efficiency & business insight contributes to better financial performance Five years: 2005–2009 One year: 2008–2009 Value Integrators All other enterprises Sources: IBM Institute for Business Value; 2010 IBM Global CFO Study.

4. Transformed organizations are creating advantage by intensely focusing on applying analytics in three areas of the business Each respondent’s answers to a set of survey questions related to these topic areas were weighted and analyzed to determine a level of focus; they were then grouped by segment.

5. IBM is investing to optimize your business outcomes More than $14B in acquisitions since 2005 More than 10,000 technical professionals More than 7,500Dedicated Consultants Largest Math Department in Private Industry More than 27,000Business Partner Certifications

6. Celequest Frango 2002 03 04 05 06 07 08 09 10 11 Transforming Business through Analytics BusinessAnalytics 6

7. Challenges Governance Mandates “…Vast new regulations and monumental expectations for risk management will help propel GRC programs substantially…”(Forrester Research Inc. “Governance Risk & Compliance Predictions: 2011 and Beyond”, Chris McClean, Dec 2010) Regulatory Pressures Business Risks “Empirical and anecdotal evidence indicates that economies and industries are structurally more risky and volatile, translating into higher levels of business risk for individual companies” (Hackett, September 2010) Changing Dynamics Business Agility Today’s leaders are seeking “disciplines and technologies that enable organizations to proactively seek, model and adapt to patterns of change”(Gartner “Hype Cycle for Pattern-Based Strategy, 2010”, Yvonne Genovese, Aug 2010) Speed of Business

8. Meet Financial Governance Challenge Integrate Risk Management Practice Drive Pervasive Performance Management Financial Analytics Strategic Focus on Finance Governance Mandates “…Vast new regulations and monumental expectations for risk management will help propel GRC programs substantially…”(Forrester Research Inc. “Governance Risk & Compliance Predictions: 2011 and Beyond”, Chris McClean, Dec 2010) Business Risks “Empirical and anecdotal evidence indicates that economies and industries are structurally more risky and volatile, translating into higher levels of business risk for individual companies” (Hackett, September 2010) Business Agility Today’s leaders are seeking “disciplines and technologies that enable organizations to proactively seek, model and adapt to patterns of change”(Gartner “Hype Cycle for Pattern-Based Strategy, 2010”, Yvonne Genovese, Aug 2010)

9. Meet Financial Governance Challenge Integrate Risk Management Practice Drive Pervasive Performance Management Strategic Focus on Finance Enabling Finance Today • IBM Cognos Financial Statement Reporting • IBM Cognos Controller (incl. TM1 FAP) • IBM Cognos Financial Performance Analytics • IBM OpenPages Financial Controls Mgt • IBM OpenPages GRC • IBM Algorithmics • IBM Cognos BI and IBM SPSS • IBM Cognos TM1 • IBM SPSS • IBM Cognos Business Viewpoint • IBM Cognos BI

10. Integrate Risk Management Practice Transparency and regulatory demands for financial, risk & compliance InformationRequirement to electronically file financial disclosures Meet Financial Governance Challenge Drive Pervasive Performance Management “Financial governance applications cover a range of applications that are targeted at the CFO and that are focused on improving financial processes and controls, particularly in the final stages before disclosure. By 2012, a clearly defined market will emerge that will provide application suites addressing this topic” JVD, Gartner

11. Performance Reporting and Scorecarding Business Drivers Close,Consolidate, and Report Analyze &Optimize Plan, Forecast, and Control Meet Financial Governance Challenge • Close Analytics • Financial Consolidation • Financial Controls Management • Corporate Reporting • Regulatory Filing (e.g. XBRL) Close, Consolidate, and Report • Single controlled environment • Application configuration • Audit tracking • Internal controls • Finance owned • IT infrastructure compliance • Global and local accounting support • Consolidation workflow • Security & access control CONSOLIDATE REPORT CLOSE

12. Performance Reporting and Scorecarding Business Drivers Close,Consolidate, and Report Analyze &Optimize Plan, Forecast, and Control Meet Financial Governance Challenge Sharing information Across the Organisation Internal Reporting Investor Relations Regulatory Reporting Legal

13. Manual Reporting Cycle Numerous e-mails & numerous versions of each document Numerous e-mails & numerous versions of each document Numerous e-mails & numerous versions of each document Meet Financial Governance Challenge Document Manager Current Process Contributors

14. Financial analytics and profitability analysis enabled by: Scalable analysis solution, capable of dealing with high degrees of complexity Providing an interactive user experience to interact with data and scenarios Easy to use – web or excel interface Single platform enabling scope to cover all attributes of the business Real-time modelling Performance Reporting and Scorecarding Business Drivers Close,Consolidate, and Report Analyze &Optimize Plan, Forecast, and Control • Financial Analytics • Spend Analytics • Profitability Analytics • Product, Market, Channel Analysis Analyze & Optimize

15. Strategic Finance • Revenue Planning and Forecasting • Expense Planning & Control • Workforce Planning • Capital and Initiative Planning Plan, Forecast, and Control Performance Reporting and Scorecarding Business Drivers Close,Consolidate, and Report Analyze &Optimize Plan, Forecast, and Control • Automated data collection, aggregation and reporting • Owned by Finance • Embedded Workflow • Support best practices • Driver based planning • Rolling forecast • What-if • Web & Excel Interface

16. Plan based on business drivers Easily implement Rolling Forecasts Connect financial and operational planning Connect plans to strategic goals Address both high participation and deeply analytic planning Advanced analytic value Dashboarding/Visualization Scenario Analytics Statistics / Predictive Analytics Real-time scenario modelling/ sandboxing Leverage best practices EXECUTIVE MANAGE- MENT EXECUTIVE MANAGE- MENT SALES MARKETING SALES SALES MARKETING MARKETING PRODUCTION AND DISTRIBUTION PRODUCTION AND DISTRIBUTION FINANCE FINANCE PURCHASING FINANCE FINANCE PURCHASING CUSTOMER SERVICE TECHNOLOGY IT/R&D HUMAN RESOURCES CUSTOMER SERVICE TECHNOLOGY IT/R&D HUMAN RESOURCES Enterprise Planning: A Distinctive IBM Advantage Financial Performance and Strategy Management Business Drivers Close,Consolidate, and Report Analyze &Optimize Plan, Forecast, and Control

17. IBM Cognos Financial Performance & Strategy Management • Account Analysis • Close Analytics • Financial Consolidation • Corporate Reporting • Financial Analytics • Spend Analytics • Profitability Analytics • Product, Market, Channel Analysis • Strategic Finance • Revenue Planning and Forecasting • Expense Planning & Control • Workforce Planning • Capital and Initiative Planning Performance Reporting and Scorecarding Business Drivers Close,Consolidate, and Report Analyze &Optimize Plan, Forecast, and Control

18. Integrate Risk Management Practice Financial Analytics Transparency and regulatory demands for risk & compliance informationFocus on horizontal adoption with greater attention to business analytics Meet Financial Governance Challenge Drive Pervasive Performance Management

19. Integrate Risk Management Practice Shared Risk and Compliance Framework • Operational Risk • IT Risk • Policy and Complience InternalAudit RiskManagement Policy & Compliance ITOperations • Financial Risk Management • Credit and Collateral Risk • Market and Liquidity Risk • Economic and regulatory Capital Financial Analytics Integrate Risk Management Practice Risk Solutions • Proven, category-leading capability for GRC • Exceptional qualifications for enterprise-wide, integrated risk management Unified View of Risk Enterprise-wide Risk Domains GRC Management Evolving from Tactical to Strategic

20. Integrate Risk Management Practice Financial Analytics Increasing levels of business volatilityLow level of adoption of common reporting and planning platforms and low satisfaction with operational planning and forecastingLimited reach and participation in performance management process; Isolated and insular processes Loose coupling with enterprise systems compromise leverage of best information Meet Financial Governance Challenge Drive Pervasive Performance Management

21. Drive Pervasive Performance Management Pervasive Performance Management Proven, category-leading capability for planning, reporting, analysis, and modeling Exceptional qualifications for spanning enterprise-wide requirements Singular, common information and integrated technology “platform” Effective bridging finance and operational performance management domains Predictive Analytics for Customer Care and Insight Acquire, Retain, Expand Financial Analytics Drive Pervasive Performance Management User-centered innovation to support individual insight Drive pervasive reach deeper and across functional domains

22. 23