Enterprise Finance Information Warehouse (EFIW)

1. Enterprise Finance Information Warehouse (EFIW) Upstate NY Hyperion Users Group17-May-2006 Jim Wall, Manager, Finance Re-engineering Kyle Kindle, Manager, Enterprise Finance Systems

2. Agenda • Agenda Kyle • Xerox in a nutshell Jim • Finance Re-Engineering Initiative Jim • EFIW Architecture Kyle • Q&A Both Xerox Corporation

3. Xerox Corporation • Xerox Mission Statement • Our strategic intent is to help people find better ways to do great work -- by constantly leading in document technologies, products and services that improve our customers' work processes and business results. • Founded 1906 as the Haloid Company • Named Xerox Corporation in 1961 • 2005 Revenue • $15.7 billion • 2005 Income • $978 million • 2005 Commitment to Research, Development and Engineering • $943 million, or about 6 percent of revenue • Employees • As of year-end 2005: 55,200 worldwide, including 29,700 in the United States. Xerox Corporation

4. Finance Re-engineering Strategy • In November 2002, goals were established to • Address critical audit and control issues relating to the accounting close and consolidation process • Improve the quality and effectiveness of finance service levels • Greater transparency of financial results • More timely and consistent financial reporting • Greatly improved planning, budgeting & forecasting • Improve finance productivity • Shorten the accounting close cycle to support accelerated financial reviews, press releases and regulatory filings • Provide more relevant financial analysis • Significantly reduce cost • Reduce the number and complexity of finance applications worldwide • Address the high degree of manually intensive, inefficient processes through re-engineering and automation Xerox Corporation

5. Finance Re-engineering Strategy • Focus on delivering benefits against the critical control issues first, achieving the quality and effectiveness objectives second, and driving costs down as the final phase Xerox Corporation

6. Re-engineering Results *ECS is Xerox’s Enterprise Consolidation System Xerox Corporation

7. Centralized Rules Overview • Address fundamental issues associated with current accountability processes • Current processes are complex, inefficient and drive significant workload. Multiple steps are involved many of which are manual. • Current processes significantly complicate the legal closing process because they lay directly on the critical close path and are prone to error and rework. • Inconsistent rules and methodologies make later interpretation and analysis of results difficult if not impossible. • Current processes are extremely inflexible to change. They tend to be poorly documented (I.e. complex and inter-dependant excel formulas and spreadsheets), and dependant on individual knowledge. • Goals • Corporate policy for allocation rules with change control process • Allocation methodologies are applied consistently and accurately on a worldwide basis • Better Analytic Tools and Standard Causals enabled by EFIW • High degree of flexibility to change (I.e additional reports, reorganize data, add metrics) • Dimensional reporting is able to meet business requirements Xerox Corporation

8. H Activity Based Methodologies Cost Basis Simple Methodologies L L Relevance H Centralized Rules Guidelines • Requirements for Activity Based Methodologies • Spending base must be easily identifiable (In all likelihood this may require new GRAs) • Activity basis must be generated / derived monthly Xerox Corporation

9. EFIW Current Content • Measures • P&L and P&L Derived Measures • Includes business segment data generated in EFIW • Balance Sheet and Balance Sheet Derived Measures • Cash Flow • Statement of Cash Flows created by legal entity using same methodology as Consolidated Statement of Cash Flows • Cash Flow data sourced from ECS, ESS, and CTA database (EFIW) • Local Cash Flows created with no additional work required by local accounting units • CTA • Change in translational CTA is calculated by Legal Company and Currency • Enables reconciliation of movement in CTA for Corporation and accurate currency reporting on Statement of Cash Flows Xerox Corporation

10. EFIW Current Content • Measures • Headcount • Activity / Metrics • Standard Operational Definitions for approximately 70 metrics • Monthly Installs, Removals, Orders, Page Volume, Backlog, Populations • Drill-down to Sale / Rental / Operating Lease • Further drill-down within includes New Business, XTI, Conversions, etc. • Calculated Metrics include AMPV, Net Adds, Revenue / page, Cancel Rate, New Business Win Rate, Average Population, etc. • Daily installs • Enterprise Reporting • ~300 standard templates in “Reports” environment • ~15 structured analysis tools in “Analyzer” environment • Ability to do ad hoc analysis in Excel Add-in Xerox Corporation

11. Source of Record DBs ESS G/Ls & Other ECS Corp Plan & Outlook CARS Data Sources for EFIW • SORs define key hierarchies: • Financial Measure (~1000) • Product / Offering (~2400) • Responsibility (~1000) • Geographies (260) • Legal Company (600) • Currency (40) • 2007 Initiative to move hierarchy management into MDM Xerox Corporation

12. Source of Record DBs EFIWCentralized Transformation & Repository ESS G/Ls & Other ECS Corp Plan & Outlook CARS Centralized Transformation & Repository • Data is imported from source systems, transformed, and stored in a centralized staging database. • SQL Database • Ab Initio for application of Centralized Rules Xerox Corporation

13. Source of Record DBs CTA_RPT CF Headcount EFIWCentralized Transformation & Repository ESS G/Ls & Other ECS EFIW Financial Corp Plan & Outlook DailyActivity CARS Monthly Activity Basis PLAN Essbase Cubes • Data is extracted from the staging repository and loaded into multiple multi-dimensional Essbase cubes in order to drive reporting and analysis activities. • Critical success factor was ability to use ASO model for EFIW Financial cube to significantly reduce load times ASO BSO Xerox Corporation

14. Source of Record DBs CTA_RPT CF Headcount EFIWCentralized Transformation & Repository Analyzer Reports ESS EFIWCentralPortal G/Ls & Other Users & PowerUsers Analyzer Analyzer ECS EFIW Financial Corp Plan & Outlook DailyActivity CARS Monthly Activity Basis PLAN Portal & Hyperion Essbase Reporting Tools • The Two primary user interfaces with the EFIW Essbase Cubes are Hyperion Reports and Hyperion Analyzer. Xerox Corporation

15. Source of Record DBs CTA_RPT CF Headcount EFIWCentralized Transformation & Repository Excel Add-in Reports Analyzer Analyzer ESS EFIWCentralPortal G/Ls & Other Users & PowerUsers Analyzer Analyzer ECS EFIW Financial Corp Plan & Outlook DailyActivity CARS Monthly Activity Basis PLAN Hyperion Essbase Excel Add-in • The Excel Add-in analysis tool allows the user to pull data directly from the Essbase Cubes Xerox Corporation

16. Xerox Corporation

17. Server Environment Reports managed by Business and follow promote to production process totally within physical Production environment. Xerox Corporation

18. SW Environment • Hyperion • Essbase 7.1.3 • Reports 7.2.1 • Analyzer 7.0.1 • EAS 7.1.5.2 • EIS 7.1.0 • Planning 4.0.1.10 (not yet in production) • MDM 9.0.4.2 (not yet in production) • SQL Server 2000 • Ab Initio 2.13.1 • Websphere 5.1 Xerox Corporation

19. Keys to Success • Strong Finance / IT partnership • Strong Finance / IT partnership ! • Sr. Executive Sponsorship • Solid funding • Prioritization of required functionality • Multiple releases in progress simultaneously Xerox Corporation

20. Q&A Jim Wall James.Wall@xerox.com Kyle Kindle Kyle.Kindle@xerox.com Xerox Corporation