Introduction to: Hyperion Strategic Finance and Strategic Finance Consulting SCOOP Session September 30, 2004 History  Hyperion Strategic Finance, formerly Alcar, was founded in 1979 by two Professors from Northwestern University’s Kellogg School of Management, Al Rappaport and Carl Noble Jr.  Al Rappaport authored Creating Shareholder Value and was instrumental in the advent of value based management  Strategic Finance was acquired by Hyperion in April of 2003  Hyperion is one of the global leaders in Business Performance Management Software with 91 of the Fortune 100 largest companies using our software for their business needs  Hyperion, with 2,600 employees, was named as one of the Fortune 100 Best Companies to Work for in 2004. What is Hyperion Strategic Finance?  Software package similar to Excel that allows users to make key strategic financial decisions, such as:  Should we divest an underperforming business?  Should we acquire one or more of our competitors?  Should we invest in project A or project B?  Should we buyback shares or issue dividends with the excess cash we expect to generate?  Consultants at HSF utilize their knowledge of finance to build financial models for clients that provide insight to executives on key strategic issues such as those listed above. Consulting Projects • Projects last between one and three months (2 months on average) • Discuss and understand client’s specific industry and business needs • Discuss and understand merger and acquisition analysis, longterm strategic planning, and other financial analysis • Build financial models using HSF software to meet client needs - Valuation Metrics - Merger and Acquisition Analysis - Capital Structure Issues, etc. HSF Clients  Corporate - Strategic Modeling  Allows running of different alternatives, strategies or scenarios and view impact on full financials (I/S, B/S, C/F, …) to evaluate important business decisions  Provides Senior Management with a tool to evaluate profitability and economic value of various business units, capital projects, and potential targets for acquisition.  Banks - Credit and Risk Management  Allows bankers to evaluate borrower’s credit worthiness utilizing full financials (I/S, B/S, C/F, …)  Allows Banks to reduce overall lending risk ‘Typical’ HSF Corporate Project - Timing  Overall time frame – 1 to 3 months  Design Phase  Work with client to identify needs and conceptualize solutions  Build Phase  Model building and linking to source systems  Testing Phase  Roll-out Phase  Client Training  On site assistance during critical business moments:  M&A transactions  Divestiture modeling  Strategic Plan Consolidation ‘Typical’ HSF Project - Staffing  Hyperion:  Project manager  Consultant  Client:  Owner is usually CFO, VP of Finance or Planning, or Treasurer  Main contact or client lead is usually Director or Manager in above areas  Remainder of team will be financial analysts from each area Key Benefits of working for HSF • Valuable industry experience • Exposure to all key finance functions of a major company • Senior management client contact • Acquire strong technical and interpersonal skills • Extensive travel opportunities including international HSF Skill Set  Technical Skills:  Solid accounting and financial statement knowledge, especially an understanding of how P&L and B/S interact to generate Cash Flow statement.  In-depth understanding of the Cash Flow statement -- Cash vs. non-cash flows, M&A activity, etc.  Valuation theory and practical application of DCF, EVA, and Multiple approaches.  Knowledge of M&A accounting is helpful.  Financial modeling and forecasting experience.  Knowledge of Credit analysis and Credit review process in Financial Institutions. HSF Skill Set  Soft Skills:  Strong analytical capabilities  Excellent written and oral presentation skills  Ability to work independently and execute projects with limited supervision  Attention to detail is a must  Ability to conceptualize complex financial topics  Ability to build close relationships with clients to help drive new business for the company