This presentation was given at Oracle Modern Business Experience, on 3/21/2019 by Wil Adkins, Managing Director FP&A, Legg Mason and Mike Killeen, SVP, Technology & Strategy, Alithya

1. Legg Mason’s Enterprise, Profit Driven
Quest with Oracle EPM Cloud
CON2441
Oracle Modern Business Experience, 3/21/2019
- Wil Adkins, Managing Director FP&A, Legg Mason
- Mike Killeen, SVP, Technology & Strategy, Alithya Ranzal

2. AGENDA
Speaker Introductions
Company Highlights
Business Challenges
Project Objectives & Solution Overview
Business Benefits & Lessons Learned
Next Steps
Q & A

3. TODAY’S PRESENTERS
3
Mike Killeen
> Alithya Ranzal - Sr. Vice President, Oracle Ace
> 21+ Years EPM & BI Experience with Alithya Ranzal
> 6 Years – Strategic Initiatives & Advisory
> 2 Years – VP, UK Division
> 6 Years – Planning & Analytics Practice Director
> 8 Years – Implementation Consultant
> Expertise Across Multiple Domains
> Business Intelligence & OLAP
> Planning, Budgeting & Forecasting
> Financial Consolidation & Reporting
> Cost Allocations & Profitability Analysis
> Master Data Management
Wil Adkins
> 40+ years in the Financial Services Industry – past
12 years in the Asset Management sector
> Legg Mason - Managing Director of Global Financial
Planning and Analysis group
> Representation of financial results to Executive
Committee, LM Board and Audit Committee
> Manage the annual multi-year planning process, monthly
projections and periodic forecast
> Provide financial and business decision support to Legg
Mason's shared services and distribution groups
> Manage Consolidation of Legg Mason's Assets under
Management, business pipeline and performance
reporting

4. AGENDA
Speaker Introductions
Company Highlights
Business Challenges
Project Objectives & Solution Overview
Business Benefits & Lessons Learned
Next Steps
Q & A

5. LEGG MASON GLOBAL ASSET MANAGEMENT
5
> U.S. based diversified global investment management leader
> Provides global distribution serving individual and institutional
investors
> Multi-manager model - Partnership of 9 Investment Affiliates,
each with investment autonomy
> Growth through product development, Affiliate investment and
acquisitions
> $727B Assets Under Management*
> 3,300 employees*
> 39 Locations Worldwide
* As of 12/31/2018

6. LEGG MASON GLOBAL ASSET MANAGEMENT
ASSETS UNDER MANAGEMENT
6

7. ALITHYA GROUP, INC.
7
> North American strategy and digital technology leader
> Specialized in designing and building innovative and
efficient digital solutions for complex business
challenges
> 2,000 professionals
> Activities and offices in Canada, the United States and
Europe
> Over 2,000 clients
> Founded in 1992

8. 9
ALITHYA RANZAL ORACLE EPM & ANALYTICS PRACTICE
9
Comprehensive Business Solutions
Our solutions drive improved business performance
through better decision making, strong customer
engagement, and optimized operations
Deep Partnership Drives Customer Value Adaptable Deployment Models
Diverse Client Portfolio & Industry Expertise
Retail
Energy/
Utilities
Team Highlights
Multiple
Oracle ACEs
Seasoned
delivery team
with avg 8 years
serving clients
Experienced
management team
with avg 15 years
in the company
Certified Cloud
Resources
Enterprise Performance
Management (EPM)
Analytics
Financial Services
Technology CPG and
Manufacturing
Healthcare
1,000+ Clients 2,000+ Projects
20+ Years
Advisory
Services
Implementation
Services
Technical Services Hosting &
Support
Training
Services
Intellectual
Property

9. AGENDA
Speaker Introductions
Company Highlights
Business Challenges
Project Objectives & Solution Overview
Business Benefits & Lessons Learned
Next Steps
Q & A

10. LEGG MASON PROFITABILITY REPORTING
CURRENT STATE CHALLENGES AND PAIN POINTS
14
> De-centralized management and profitability reporting for
U.S. and International based entities
> Complex manual non-standardized Excel based process with
inconsistent rules
> Multiple disconnected views of profitability: Management,
Funds and Sales
> Incomplete data sets for AUM, Sales and Revenue at
Channel/Firm level
> Minimal transparency into the allocations and process
> No client/firm allocations

11. CURRENT STATE - ALLOCATION FLOW
A COLLECTION OF SPREADSHEETS
15
Territory Profitability
LMGD - US LMGD - INTL
Affiliates -
Institutional
Gap -
Transfer
Pricing
Gap - IT
Svc Costing
Gap – Non-
15c
Products
Marketing
& Sales
Allocation
Shared
Service
Entity
Allocatio
n
European
Office
Profitability
Model
US Firm
Profitability
Model
15c Profit
Study Model
US Firm
Profitability
Model
What If -
Product
Investment
s
Commissi
on
Calc

12. AGENDA
Speaker Introductions
Company Highlights
Business Challenges
Project Objectives & Solution Overview
Business Benefits & Lessons Learned
Next Steps
Q & A

13. LEGG MASON - ENTERPRISE PROFITABILITY INITIATIVE
17
> Enterprise Profitability Initiative
> Global and company-wide program focused on measuring the
profitability of Legg Mason’s products and services across multiple
dimensions (Investment Vehicle, Channel, Client, Location, Sales
Force, etc.)
> Solution that provides traceability into cost drivers and how they
impact profitability
> Business management process that increases transparency
resulting in “actionable insight”

14. If you can generate a whale curve by Customer, by Product, by Channel, etc, you’re on your way to making
intelligent decisions about your business.
PROFIT OPPORTUNITIES
18
Exploiting the Whale!
50% 15% 35%
$140 Mil
$81 Mil
Why $60M Loss?
Product/Customer/Channel/Market, etc
Profit
Detail?
Strategic
P&Ls

15. SOLUTION AT A GLANCE
19
> Replace Excel & Custom “black box” based process with
Oracle EPM Cloud Profitability Solution (PCMCS)
> Fully-allocated P&L with linking GAAP Management and
Sales Contribution Views for Legg Mason and Affiliates
> Allocations to Products, Channels and Clients/Firms
> Includes Shared Services, Project specific costs and IT costs
by service type
> Self-Service Reporting with Ad Hoc Excel Based Analysis,
Published Profitability P&Ls, and Profitability Specific
Dashboards & Visualizations

16. ORACLE PROFITABILITY & COST MANAGEMENT CLOUD
PCMCS Capabilities & Workflow
Published Reports &
Interactive Analytics
Model Development
Master Data & Data
Integration Management
Profitability & Cost Management
Cloud Service
(PCMCS)
Financial Reports,
Smart View, Embedded
Visualizations
Model Execution
No Large Initial Investment
Accessible
Always up to date
Limited IT Involvement
Embedded
Intelligence
Mobile
Rule Transparency
Allocation
Engine
Integrations Dashboards &
Work Areas
20

17. PCMCS - DATA MANAGEMENT
21
Master Data & Data
Integration Management
PCMCS
PCMCS
PCMCS
> Native Load
> Formatted Text Document
> No Load Rule Required
> Loads can be initiated in PCM GUI
> Cloud Data Management (e.g. FDMEE “Light”)
> Provides data mapping
> Provides scheduling
> Provides Drill (included in user licenses)
> Flat File & Cloud to Cloud Import/Exports
> Hybrid (e.g. FDMEE On-Premises v 11.1.2.4+)
> Full CDM Functionality, plus….
> Custom Scripting & Automation
> Direct Connectivity to Ground Applications
> Additional licensing considerations….

18. SOLUTION - ARCHITECTURE & DATA FLOW
22
> Data Sources
> Financial Data
inputs
> Statistical Data
> Metadata
> Dual Application
> Calculation
> Reporting
> Reporting Options
> Smart View
> Financial
Reporting
> Analytics
> On-premise
cube
IT Charges
Client Exp
Prod Rev
Sales Stats
GAAP Results
Manual
Time
Surveys
Master Data & Data
Integration Management

19. PCMCS - RULES MANAGEMENT Model Development
> Point-of-view (POV) Specific
> Rules, Drivers, & Financials can vary by
POV
> Completely GUI based
> Intuitive Business focus layout
> No coding knowledge necessary
> No staging tables to edit
> Four Easy Steps:
> 1. Define your Rule
> 2. Select your Source
> 3. Select Destination
> 4. Select Driver
> Optional – Select Offset

20. SOLUTION - ALLOCATION METHODOLOGY
Interdepartment
Transfers
Entity
No Project/
IT Cost
No
Product
No
Channel
No
Company
Project/IT
Allocations
Entity
Project/
IT Cost
No
Product
No
Channel
No
Company
Product
and Channel
Allocations
Entity
Management
Account
Product Channel
No
Company
Management to
Contribution View
No Entity
Project/
IT Cost
No
Company
Project/
IT Cost
Product Channel
Management
Account
Management
Account
Contribution
Account
Client/Firm
Allocations
No Entity
Project/
IT Cost Company
Product Channel
Contribution
Account
Affiliate
Contribution
Adjustment
No Entity
Project/
IT COst Company
Product Channel
Contribution
Account
Set 1 – Inter-Department Transfers (Entity to Entity)
Set 2 – Project and IT Cost Allocations
Set 3 – Product and Channel Allocations
Set 4 – Management Account to Contribution Line Items View
Set 5 – Client and Firm Allocations
Set 6 – Affiliate Contribution Adjustment
> Methodology
> PCMCS allocates Costs &
Revenue Pools through
one or more stages or
Rule Sets in a top down
capacity
> Rule Sets – Steps in the
allocation process that
have similar pool
characteristics
> Separate Sets enable
traceability through the
model and distinct data
points
Model Development

21. SOLUTION – PROFITABILITY ANALYTICS
Key Analysis – Client Profit Curve
Key Analysis – Profit Scatter Plot
Published Reports &
Interactive Analytics

22. AGENDA
Speaker Introductions
Company Highlights
Business Challenges
Project Objectives & Solution Overview
Business Benefits & Lessons Learned
Next Steps
Q & A

23. SOLUTION RESULTS
28
Legacy Process Oracle EPM Cloud Solution
Transparency “Black Box” Traceability through all allocation
steps
Governance De-centralized processes Single Model for all Entities
(US/Intl), standardized process,
centrally managed
Integrity Inconsistent allocation
methods across Sales,
Product & Finance views
One common allocation
methodology – different views are
simple reporting pivots
Flexibility Custom built Excel
worksheets
‘What-If’ capability, Timely,
Business User Driven
Scope Product and Channel only Product, Channel, Client/Firms and
IT Costs by Service Type
Other/
Enhancements
No key client and firm
profitability
Supports external reporting, project
allocations, global key client and
firm profitability

24. BUSINESS OUTCOMES
29
> Actionable results – by providing different views of profitability that
can be used to make decisions regarding the viability of Products /
Channels, etc.
> Effective cost management – by enabling focus on cause and effect
regarding cost incurred by a particular group and its alignment to LM
strategic goals
> Enterprise profitability modelling
> Common allocation methodologies
> Greater process efficiency - faster generation times
> First leap into the cloud for Finance

25. LESSONS LEARNED
30
> Project Learnings
> Make sure the right team of technical and functional SME’s
are identified and available
> Ensure model owners participate in rule configuration &
updates
> Perfect data is rarely available – get to a state where you can
move forward, and then use the project to help cleanse
upstream data sources
> Take advantage of frequent cloud software updates &
leverage capabilities offered
> Deliver End user training prior to testing cycles begins

26. AGENDA
Speaker Introductions
Company Highlights
Business Challenges
Project Objectives & Solution Overview
Business Benefits & Lessons Learned
Next Steps
Q & A

27. NEXT STEPS
32
P0
•Description: Project Readiness
•Activities: Prepare Source Data and Master Data. Document Allocation Rules. Mobilize Project Teams
•Goal: Prepare for Design and Start of Implementation Project
P1
•Description: LMGD Allocations & Profitability
•Applications: PCMCS 1 (LMGD Allocation Processing), PCMCS 2 (Reporting)
•Goal: Retail and Quasi Institutional Profitability, Solution Foundation for Future Growth, Some What-If
P2
• Description: Institutional (“Affiliate”) Allocations & Profitability, PCMCS Enhancements
• Applications: PCMCS 3 (Institutional Allocation Processing), PCMCS 1, PCMCS 2
• Goal: Enhancements to Retail Profitability and Reporting, Additional What-If
P3+
• Description: Sales Rep Profitability, Solution and Global Enhancements
• Applications: PCMCS 4 (Sales Rep, Variable Comp Allocations)
• Goal: Replace existing offline variable calc model, establish new producer performance views

28. QUESTIONS
Mike Killeen
SVP, Technology & Strategy
Alithya Ranzal
mike.killeen@alithya.com
35
Wil Adkins
Managing Director Global FP&A
Legg Mason
WCAdkins@leggmason.com
Last Session! - IT Financial Management [CON2316]
Thursday | 3/21 | 2:50pm - 3:40pm | Tradewinds B - North Convention Center

29. ALITHYA’S SPEAKER SESSIONS
36
Visit us at Booth FIN-15
Strategic Modeling in a Dynamic World [CON2319]
Wednesday | 3/20 | 5:20pm - 6:10pm | Tradewinds B - North Convention Center
Oracle EPM Cloud: Legg Mason's Enterprise, Profit-Driven Quest [CON2441]
Thursday | 3/21 | 1:45pm - 2:35pm | Tradewinds C - North Convention Center
IT Financial Management [CON2316]
Thursday | 3/21 | 2:50pm - 3:40pm | Tradewinds B - North Convention Center