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Edgewater Ranzal presented how Cenovus Energy transformed their long-range planning (LRP) process through the implementation of Oracle's Hyperion Strategic Finance (HSF). at the Association for Finance Professionals (AFP) 2013 Annual Conference.
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ONE Company, ONE Team:
Developing a Fully Integrated
Long-Range Plan
October 30, 2013 Steve Coverick
Edgewater Ranzal
Strategic Planning
Practice
Kent Sweezey
Cenovus Energy
Corporate Planning
Agenda
Company Overviews
Long-Range Planning Overview
Development Considerations
EPM Platform
High Level Demonstration
Questions & Answers
Company Overview: Cenovus TSX, NYSE | CVE
Enterprise value $29 billion
Shares outstanding 756 MM
2013F production
Oil & NGLs
Natural gas
183 Mbbls/d
515 MMcf/d
2012 proved & probable
reserves 3.1 BBOE
Bitumen
Economic contingent
resources*
Discovered bitumen
initially in place*
Lease rights**
9.6 Bbbls
93 Bbbls
1.5 MM net
acres
P&NG rights 5.5 MM net
acres
Refining capacity 229 Mbbls/d
Values are approximate. Forecast production based on midpoints of the July 24, 2013 guidance document. Cenovus land at December 31, 2012. *See advisory. **Includes an additional 0.5 million net acres of exclusive lease rights to lease on our behalf and our assignee’s behalf. © 2013 Cenovus Energy Inc.
Volumes are shown before royalties and net to Cenovus. 2013F based on midpoints of the July 24, 2013 guidance document. 2014F - 2023F based on future price assumptions as noted in the advisory. Forecast volumes are estimates only and subject to regulatory and partner approvals. See advisory. © 2013 Cenovus Energy Inc.
Company Overview: Cenovus Mbbls/d
Company Overview: Edgewater Edgewater
Founded in
1996
Essbase
Acquired
Vertical Pitch
2007
HFM/
FDM
Acquired
Meridian
2010
HSF
Planning
2001
Planning
Build
OBI Team
2011
OBIEE
Ranzal
Build DRM &
HPCM Teams
2009
DRM &
HPCM
► NASDAQ: EDGW
► The Boston Globe’s Top 100 Business
► Top 500 fastest-growing stocks on Wall Street
► One of the largest Full-Service Oracle/Hyperion EPM and BI practices
► Oracle Platinum Partner
► Multiple Oracle Partner of the Year awards
► Premier Consulting Services in North America and Europe
Acquired by
Edgewater
2004
Data
Integration &
Warehousing/
CRM/
Web 2.0
Company Overview: Edgewater
Consolidation
Business
Intelligence
Planning
Infrastructure
Training
Support
Services
Data
Services
Project
Management
LRP Overview: Purpose
Stewardship and Capital Discipline
Collaboration Sensitivity
and Scenario Analysis
Budget Foundation
LRP Overview: High Level Process
Executive Guidance
Forecasts and Analyses
Review and Communication
LRP Overview: CP’s Role
• Corporate forecast model
• Data sources integration
• Financial and operational reports
• Sensitivity and scenario analyses
• Reporting consistency
Budget Outlook LRP
LRP Overview: Challenges
• Complex and segregated spreadsheets
• Cumbersome scenario analyses
• Limited documentation
• Version control
• Duplicated efforts
Development Considerations
• Spend time on model design
– Actuals Outlook/Budget LRP integration
– Understand routine / non-routine transaction impact
– Focus on strategic imperatives
– Corporate hierarchy views (i.e. legal vs mgmt)
– Customized handling of data sources
– Naming convention
– Global assumptions
Development Considerations
Documentation
360o training
Micro and Macro Testing
Flexibility
Integration Maintenance
Global Sensitivities
Customized Reports
13
Essbase
EPM Platform: Integration
HSF
Other Inputs
Ops Planning
Hyperion Planning
Excel Reporting
EPM Platform: HSF
Corporate Development
Value Management
Long-Term Financial Planning
Treasury Strategies
Predictive Modeling & Simulation
Long-Term (3-5 Year)
Full Financial Statement
Projections
Key Performance Metrics
New Product Offerings
Acquisitions / Divestitures
Discounted Cash Flow
Economic Value Added
Liquidation Value
Capital Structure
Debt Issuances/Payments
Covenant Analysis
Credit Ratings
What-if
Analysis
Economic Shifts
Commodity Pricing
Product Pricing
Growth Initiatives Capacity Planning
High Level Demonstration
Pre-Built Accounting Integrity
• Pre-built, fully integrated financial statement foundation
• Pre-built forecast methods and formula functions
• What-if Analysis toolkit
Powerful Scenario Capabilities
Easily Analyze Various Combinations
Mix and Match Scenarios
Capital Projects included
Acquisition excluded
World Class Treasury Analysis
• Calculates net cash surplus or deficit from multiple models and scenarios
• Funding Options tool to re-allocate surpluses and fund deficits
• Debt scheduler
• User-defined reports to monitor covenants, credit ratings, and earnings per share
Acquisition/Divestiture Modeling
Set Strategic Targets in HSF
Align the Planning Process
Seed Budgets with Strategic Targets
From
Strategic Plan
Tweak Budget with Targets in Mind
Update Targets with Latest Forecast
Cenovus Forward Looking Information
Cenovus Oil & Gas and Financial Information