1.
Creative Solutions for FX Analysis in HFM
February 23, 2018
Jill Baker, Yum Brands
Mary Chan , Finit Solutions

2.
Finit Overview
• 150+ HFM projects
• Managed largest roll-out of HFM in North
America
• 175+ FDM projects
• World Leader in FDM implementations and
custom solutions
• 100+ Planning / Essbase projects
• 40+ OneStream Clients (Market Leader)
• #1 Implementer of OneStream
• Platinum Partner
• Founded in 2002
• 90+ employees in 20+ states
• Mostly CPAs, MBAs
• Gold Level Oracle Partner
• 300+ Clients – all CPM / EPM
Focused
• 1,000+ CPM / EPM projects

3.
The Finit Family
Fully aligned with
our clients, not just
bottom line $
No debt or external
ownership
Work with Finit
employees, no
subcontractors
Compensation
based on CLIENT
SATISFACTION
PRIVATELY
OWNED
CLIENT
SATISFACTION
NO
SUBCONTRACTORS
DEBT FREE

4.
Finit Customer Success
Our values, culture, and approach to
becoming a trusted advisor to our customers
has led to
100% customer success
for every Finit client (300+) and for every
Finit project (1,000+)

5.
Some Finit Clients

6.
Questions

7.
Upcoming Cloud Webinars
• Friday, March 9 – Breaking Through the Cloud:
Closing in on Full Parity with Oracle FCCS
• Presented by Geordan Drummond
• Friday, March 23 – Breaking Through the Cloud:
Intro to Planning in the Cloud
• Presented by Chuck Usher

8.
About The Presenters
• Jill Baker
• (Jill.Baker@Yum.com)
• Manager, Corporate IT
• 29 years at Yum! Brands
• 20 years working with
HyperionEnterprise, HFM,
FDM, Smart View, and JD
Edwards
• Responsible for working with
Finance team to ensure HFM is
working as designed,
improving processes, and
adding functionality as needed
• Mary Chan
• (mchan@finit.com)
• Implementation Manager
• 11 years at Finit
• 11+ years working with HFM,
FDM, BI+ Financial Reporting,
Smart View, FCM and Hyperion
Enterprise
• Oracle Hyperion Financial
Management 11 Certified
Implementation Specialist

9.
Agenda
• Introduction on Yum! Brands
• FX Analysis Definition
• Business Requirements
• Solutions Evolution
• HFM Metadata and Rules Setup
• Execution
• Users’ Experience
• Design Considerations
• Benefits
• Q&A

10.
About Yum! Brands, Inc.
• Based in Louisville, Kentucky
• One of the world’s largest restaurant companies with over 44,000
restaurants in more than 135 countries and territories; open over 6
new restaurants worldwide per day on average
• Ranked #422 on the FORTUNE 500 list in 2017 with revenues of
more than $6 billion
• Three Global, Iconic Brands that people trust and champion –
KFC®, Pizza Hut® and Taco Bell®
• 90,000 global employees

11.
FX Analysis Definition

12.
FX Analysis Definition
• a.k.a. Constant Rate Analysis or Constant Currency Analysis
• Translate different data (Actual, Budget, Forecast, Prior Year Actual,
etc.) using the same exchange rate to enable financial analysis
without effect of fluctuation due to changes in exchange rates
• Used for comparative and variance reporting on performance
measures
• Usually for P&L accounts
• Occasionally include Balance sheet accounts

13.
Business Requirements at Yum
• For companies that have functional currencies different from the
reporting currency, FX impact analysis or Constant Rate Analysis
may be a simple translation; especially with HFM’s inherent
translation function
• Yum’s franchisees submit financial data to Corporate in USD, but
their business transactions are in their local currencies
• Yum requires FX impact analysis for each financial close every
period on P&L accounts

14.
FX Analysis in Excel

15.
Manual Approach using Excel
• Hyperion Enterprise was the consolidation tool
• To compare current year Actual data to prior year Actual using
prior year exchange rates, multiple tabs in Excel are required with
entities in rows and P&L accounts in columns:
• USD – retrieved current year current period data in USD
• LC Rate – exchange rates to translate USD back to LC in current year current
period
• LC – formulas in Excel to divide USD by LC Rate
• PY Rate – exchange rates to translate LC to USD in prior year current period
• USD at PY Rate – formulas in Excel to multiply LC by PY Rate
• FX Impact – USD minus USD at PY Rate
• To compare Actual data at Plan rate, another set of spreadsheets
are required to perform the multiple translations

16.
FX Analysis in HFM – Round 1

17.
Migration from Enterprise to HFM
• When Yum decided to upgrade from Hyperion Enterprise to HFM
v11.1.2.0, one of the requirements was to put Constant Rate
Analysis in HFM to make it easier to compare P&L data at various
FX rates such as prior year Actual, Plan, Forecast, etc.
• Only the HFM app for the international division requires FX analysis
• HFM performs translation when a child consolidates to a parent in
different default currency
• No automatic translation if parent and child entities share the
same default currency
• What to do?

18.
Constant Rate Analysis in HFM Round 1
• Add intermediate parent entities in local currencies to let HFM translate the
children entities in USD to local currency such as BHD, EGP, JOD, LBP, etc.

19.
Constant Rate Analysis in HFM Round 1 (cont’d)
• Set up various FX rates analysis in Custom3 instead of Scenario because
constant rate analysis is part of financial close rather than at the end of close
• ScenarioRate is the natural translation for each scenario that aggregates to
TopC3, e.g. Actual at Actual Rate, Q1 Forecast at Q1 Forecast rate, etc.

20.
Execution
• Administrators to enter the FX rates for the various scenarios for the reporting
period – Actual, prior year Actual, Q0F, Q1F, Q2F, Q3F, QXFSpot and AOP
• Users to run consolidation at the parent entities in the desired scenario, e.g.
Actual
• Upon completion of the consolidation, P&L data in Actual scenario is
translated into 9 different rates and stored in the Custom3 members

21.
Users Experience
• To compare current year Actual data using prior year Actual and
Plan (AOP) rates, in a data grid or Smart View, users would retrieve
data from Custom3 members TopC3 (or ScenarioRate), PYRate and
AOPRate and do the comparison

22.
Round 1 Design Considerations
• Pros
• Reduce the amount of scenarios needed by setting the FX rates in a Custom
as opposed to setting the FX Rates in Scenario
• Eliminate the need to copy data from Actual scenario to other FX scenarios
• Easy FX impact analysis and reporting from same scenario
• Simple Sub Translate rules to get FX rates from other scenarios to translate
and store in corresponding Custom members
• Cons
• Increased number of entities by about 100
• Use of a Custom dimension when only 4 Customs were available
• Performance impact depending on the amount of data, overall not bad for
Yum

23.
Benefits comparing to Excel Method
• Data is available within a scenario upon completion of
consolidation in HFM
• Sub Translate rules cannot be modified by users without
administrator right, whereas Excel file calculations can be altered
by users unless cell protection is enforced
• Users can easily pull data from HFM to perform any FX analysis as
they wish

24.
FX Analysis in HFM – Round 2

25.
HFM Upgrade and Redesign
• Five years later, as part of the Brand Realignment initiative, entities were
realigned by brand rather than geographically
• 7 existing HFM applications were redesigned into 5 new HFM applications –
one for Yum consolidation and reporting, and four for divisional analysis
• FX impact analysis is set up in all applications since there are international
entities in all 5 apps
• More entities in the divisional apps as they include store level entities
• Round 1 approach is not practical as too many intermediary parents would
need to be added which would impact performance to great extent
• What to do?

26.
Constant Rate Analysis in HFM Round 2
• Entities are set up with default currencies of USD and no natural translation
occurs in HFM
• UD1 code – “FACTS” to indicate translation using FACTS rate instead of Average rate
• UD3 code – local currency code for the entity such as CAD, EUR, GBP, etc., for looking up
the exchange rate
• System Translation replaced by Rules referencing the codes in UD1 and UD3
• Sub Calculate Rules to translate from USD to LC, then from LC to USD at the
various scenario rates

27.
Constant Rate Analysis in HFM Round 2 (cont’d)
• Similar to Round 1, various FX rates analysis is set up in Custom2 instead of
Scenario because constant rate analysis is part of financial close rather than at
the end of close
• May share a Custom with other use
• All constant rate members have AggWeight=0

28.
Constant Rate Analysis in HFM Round 2 (cont’d)
• Entity

29.
Constant Rate Analysis in HFM Round 2 (cont’d)
• Calculation

30.
Execution
• Administrators to enter the FX rates for the various scenarios for the reporting
period – Actual, prior year Actual, Q0F, Q1F, Q2F, Q3F, QXFSpot and AOP
• Users to run consolidation at the parent entities in the desired scenario, e.g.
Actual
• Upon completion of the consolidation, P&L data in Actual scenario is
translated into Local Currency and 7 different rates and stored in the Custom2
members

31.
Users Experience
• To compare current year Actual data to prior year Actual, Plan
(AOP) and Q1 Forecast (Q1F) rates, in a data grid or Smart View,
users would retrieve the data by selecting the constant rate
members in Custom2 :

32.
Considerations
• Pros
• Eliminate users confusion over the use of the created
“SCENARIO_CURRENCY” entities
• Similar to Round 1 method for end users
• Easier metadata maintenance for administrators
• Fewer entities required
• Cons
• Longer development time as Sub Calculate rules need to be written and
tested to perform the manual translation

33.
Benefits comparing to HFM Round 1 Method
• Easier for users to understand and see the data with the Custom2
LC (local currency) member if translation takes place for an entity

34.
Questions?

35.
Upcoming Cloud Webinars
• Friday, March 9 – Breaking Through the Cloud:
Closing in on Full Parity with Oracle FCCS
• Presented by Geordan Drummond
• Friday, March 23 – Breaking Through the Cloud:
Intro to Planning in the Cloud
• Presented by Chuck Usher

36.
Thank you for Attending!
Today’s Presenters:
Jill Baker
Jill.Baker@Yum.com
Mary Chan
mchan@finit.com
Copy of the slides or Recording:
Email us for a copy of the slides or a
link to the recording
insights@finit.com
Past webinars:
www.finit.com/webinars
Follow us on Twitter for updates:
@Finit_Solutions