Oracle hyperion strategic finance Oracle Open World, San Francisco 2013

1. Oracle hyperion strategic financeOracle Open World, San Francisco 2013

2. introduction • Who am I: • Johan Rehnstrom, Corporate Director Business Controller, AgnicoEagle Mines Limited • Objectives of this session: • Introduce you to Agnico Eagle Mines Limited and the gold mining industry. • Overview of Agnico Hyperion solution. • Why did Agnico implement Hyperion? • Challenges and recommendations when you implement.

3. Agnico Eagle mines limited and the gold mining industry • Gold mining company with head office in Toronto; • In total eight operating mines in Canada (4), Mexico (3) and Finland (1); • Focus on low political risk countries and wholly owned assets; • Produce 1 million ounces of gold per year, equivalent to $1.3B; • Key success factor is operational excellence and project execution; • Capital intensive business; • Mergers and acquisitions.

4. Overview of agnico’shyperion solution • Budget JDE HFM HP HSF • Actual • Budget • Actual • Budget on an account level; • Actual on an account level from JDE; • Detailed planning: • Kittila; • LaRonde; • Meadowbank; • Corporate G&A; • Feed templates: • Lapa • Goldex • Pinos Altos • Creston Mascota • La India • Exploration • Regional offices • Tax is calculated; • Interest Income added; • Interest Expense calculated; • Depreciation / amortization calculated; • Balance Sheet created; • Cash Flow created. • 2014 Budget – Kick off meeting

5. Background to hyperion implementation • A Performance Management Assessment project was initiated in September 2011 to address existing issues and gaps and develop a roadmap of recommended initiatives. • Recommendations: • Develop integrated planning, budgeting and forecasting process (operational and financial); • Provide enhanced analytical support to mine management; • Deploy KPI/Dashboard • Enhance cost management process • Review period-end close process • The Executive Committee formed Project Phoenix to address business planning and consolidation findings.

6. Planning maturity model • Added-Value / Scope Planning, Budgeting & Forecasting Evolution Stages • Leading • We see five different evolution stages in: • Basic • Developing • Established • Advanced • Leading • Each stage demands special requirements in terms of integration, standardization and business specific customization across processes, structures and technologies. • The level of added-value provided by each stage is different and linked to other key processes in the performance management framework. • Advanced • Established • Developing Basic • Business Alignment People Process Technology

7. Planning maturity model – how to improve Basic • Developing • Established • Advanced • Leading • Entire organization focused on continually improving competencies of all individuals. • Commitment from senior management to improve the knowledge, skills and performance of its staff. • One function responsible for training and development programs. • No basis for skills improvement. • Quarterly strategy communication from management or senior executives. • Empowered workgroups. • Organization focuses on developing knowledge and skills needed to perform the organization's business activities. • Enterprise-wide processes. • Rolling forecast and other advanced processes. • Executives regularly communicate strategy. • Strategy development involves key people across functions in the organization. • Analytics focused on strategy and shareholder value. Supports decision-makers and focuses on unanticipated events. • Inconsistent process. • Restricted / conflicting strategy communication. • Highly manual process. • No formal planning process. • Purely financial budget. • Strategic direction is not well communicated and understood. • Analysis not aligned with strategy. • More standardized processes. • Some integration across business. • Strategy communicated annually by senior executives. • Analysis not clearly aligned with strategy. • Reliance on ERP as budget tool. • Ad hoc analysis tools are only available to “power users”. • Mentoring supports skills and knowledge competencies required by the business. • Purpose-built, multi- dimensional tool. • Ad hoc analysis is only feasible via requesting assistance from IT. • No planning tools. • Basic tools (e.g. Excel). • Ad hoc spreadsheets. • Real-time forecasting. • Budget process integrated with targets and objectives. • End users can perform ad hoc analysis.

8. Challenges and recommendations • Standardization – understand your data structure; • Do not underestimate effort; • Show the project is important; • Work cross functional; • Make people want to change…; • …i.e. change management is key; • Stakeholder commitment; • Performance oriented culture; • Hand over to the line organization as soon as possible and prepare to support; • Plan and execute; • Crawl – walk – run (manage scope); • Show quick wins; • Knowledge transfer; • Project management office; • Use steering committee; • Be persistent and communicate.

9. Round up • So the objectives of this session: • Introduce you to Agnico Eagle Mines Limited and the gold mining industry. • Overview of Agnico Hyperion solution. • Why did Agnico implement Hyperion? • Challenges and recommendations when you implement.

10. agnico-eagle.com