Finance Transformation in Financial Services: Solution and Case Study Review Bill Greene, Global Solution Manager, Oracle Michael Hernandez, PNC Financial Services Vas Rao, CIBC John Van Puffelen, TIAA CREF

Are you in the Right Room? Optimize Processes for Consistent, Repeatable and Efficient Finance and Risk Greater Data Transparency and Strong Links between Finance and Risk Availability of Reconciled, Detailed and Timely Data Address today’s Regulatory Challenges Comprehensive Daily, Weekly, Monthly Perspective of Risk and Finance Information

Agenda Setting the Stage – Challenges and Approach (10min) PNC Financial Services (15min) CIBC (15min) TIAA CREF (15min) Questions and Answers (15min)

Speakers Michael Hernandez, SVP Accounting Operations, PNC Vas Rao, VP Finance Services Group, CIBC John Van Puffelen, VP Corporate Financial Planning and Analysis, TIAA CREF

Enterprise Risk and Finance Challenges Operationalizing Risk and Finance Risk and Compliance Cost and Efficiency $

Enterprise Risk and Finance: The Approach Data Sourcing Data Preparation Management Reporting & Analytics Accounting Regulatory Reporting Analytical Enrichment

Michael Hernandez SVP Accounting Operations Michael.hernandez@pnc.com

Overview NCC Acquisition in 2008, catapults PNC into “Core Bank” ranks for Basel reporting Financial crisis leads to expanded reporting and compliance requirements Increased systems and data complexity

Focus of “Office Of Finance” Historically: Minimal investment in finance technology Cost reduction environment Acquisition support priorities Focus of operating system enhancements Product and customer priorities versus accounting & finance needs Resulting In: Current finance information processes have become complex & fragmented Dependent on manual data manipulation to cope with the increase in analytical needs and reporting requirements – both internal and external

Finance Transformation Journey (So Far) 2009 2010 2011 2012 2013 Integrate NCC systems Acquired Loan Acctg.(SOP 03-3) Financial System Gaps Create Finance Project Management Office Hyperion Essbase Basel Compliance Oracle DRM SEC Reporting Enterprise Information Platform Reconciliation Finance Transformation Strategy Peoplesoft Upgrade SEC Reporting Phase 2 OFSAA Financial Accounting Hub Hyperion Planning Refine/Expand Strategy

Integrated Financial Systems Blueprint Risk ALM Finance SCM Common Data Platform

PNC Financial Systems Ref Architecture

Vas Rao VP, Finance Services Group

Who Are We? CIBC (CM: TSX; NYSE) Canadian-based global financial institution 42,793 employees 11 million individual, small business, commercial, corporate and institutional clients 3,456 bank machines 1,103 branches Valuation (Jan 31/13): Dividend yield: 4.5% We’ve seen this type of change before in Telco—does this sound familiar? Six in ten people (59%) say they would be more likely to change bank if they could keep their account # Only 51% of customers are confident they will remain with their primary bank over the next 6 months Financial services institutions must now be focused on differentiation through customer experience Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 15 1Canada Rank is relative to the other 5 major Canadian banks (BMO, BNS, RY, TD, NA). 2North America rank is relative to the other 5 major Canadian banks and JPM, BAC, C, WFC, USB, BK, PNC, STT, COF, STI, BBT, RF, FITB.

Financial Data Challenges Data feeds from multiple sources Limited ability to “drill down” for ad hoc analysis and investigation Time spent finding data, scrubbing data, formatting data and presenting data as information Manual reconciliations Variable definitions of data and calculations We’ve seen this type of change before in Telco—does this sound familiar? Six in ten people (59%) say they would be more likely to change bank if they could keep their account # Only 51% of customers are confident they will remain with their primary bank over the next 6 months Financial services institutions must now be focused on differentiation through customer experience Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 16

Our Guiding Principles The technology that supports Finance was built for a single purpose and at a point in time. As our regulatory demands continue to increase we know that our Technology has to evolve. Data Standardization Finance centrally governs data definitions and standards Thick & Thin Ledger A Financial Data Warehouse (FDW) and GL containing all financial data Results between GL and FDW are reconcilable and the reconciliation process is highly automated Data Processing Management We’ve seen this type of change before in Telco—does this sound familiar? Six in ten people (59%) say they would be more likely to change bank if they could keep their account # Only 51% of customers are confident they will remain with their primary bank over the next 6 months Financial services institutions must now be focused on differentiation through customer experience Flexible reporting to drive on demand analysis, insights and business discovery Reporting Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 17

Target State Architecture We’ve seen this type of change before in Telco—does this sound familiar? Six in ten people (59%) say they would be more likely to change bank if they could keep their account # Only 51% of customers are confident they will remain with their primary bank over the next 6 months Financial services institutions must now be focused on differentiation through customer experience Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 18

Scalable Technology Solution Fiscal 2013 – S4 Case Study Background The S4 Return provides Statistics Canada with information relating to Assets Under Administration (AUA). Information from this return will be used to compile estimates of assets which are held for retirement purposes Finance has been manually collecting data and preparing reports, on a best efforts basis and at a summarized level, for approximately 60% of the Bank’s AUA for the past 3 quarters but the regulations have changed. Statistics Canada is now asking for 100% of Bank’s AUA at a granular level by calendar Q3 2013 Issues Scalable Technology Solution The S4 Return provides Statistics Canada with information relating to Assets Under Administration. Information from this return will be used to compile estimates of assets which are held for retirement purposes We’ve seen this type of change before in Telco—does this sound familiar? Six in ten people (59%) say they would be more likely to change bank if they could keep their account # Only 51% of customers are confident they will remain with their primary bank over the next 6 months Financial services institutions must now be focused on differentiation through customer experience Leverageable Data Acquired larger population of data Data is reusable to the enterprise Standardization Enable automated and standardized reporting (e.g. Mutual Funds Sales Reporting) Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 19

Where Are We? OFSAA We’ve seen this type of change before in Telco—does this sound familiar? Six in ten people (59%) say they would be more likely to change bank if they could keep their account # Only 51% of customers are confident they will remain with their primary bank over the next 6 months Financial services institutions must now be focused on differentiation through customer experience Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 20

Solution: OFSAA Establishment of the Financial Warehouse Dirty Data We’ve seen this type of change before in Telco—does this sound familiar? Six in ten people (59%) say they would be more likely to change bank if they could keep their account # Only 51% of customers are confident they will remain with their primary bank over the next 6 months Financial services institutions must now be focused on differentiation through customer experience Deliver One Enterprise source of all AUA data Establishment of the Financial Warehouse Automated Regulatory Reporting Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 21

John Van Puffelen VP Corporate Finance

Disclosure This material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons. Past performance does not guarantee future results. The views presented represent the views of the speaker and not necessarily the views of the organization.

TIAA-CREF Facts & Stats… Who is TIAA-CREF TIAA-CREF is one of the largest private providers of retirement benefits nationwide Start with Institutions  Participants  AUM  Locations  Employees Among the highest-rated insurance companies in the U.S. - Holds highest ratings from all four leading independent insurance industry ratings agencies Largest real estate manager of U.S. tax-exempt assets Our Place in the World Both Erik and I work with in the Finance & Actuarial area…500+ employees separated into 7 functional areas – Operations & Mgmt Services, Controllers, Fund Admin, CFPA, BFO, Tax and Actuarial SLIDE TRANSITION: Why are we here…Over the last couple of years we have attended several conferences – in order to learn and gain insight how others approach governance

Mgmt Reporting & Analytics (MRA) Common Financial Analysis Platform Upgrade/replace existing software applications and manual processes. Create scalable, automated and transparent environment to support profitable growth STRATEGIC GOAL To be a sought after business partner that proactively provides financial and operational information and value added advice that aligns to TIAA-CREF’s corporate strategies and drives the firm to achieve its Vision 2020 goals. Integrated Financial Management Information Align business and financial planning with corporate strategies Develop multi-dimensional profitability reporting for products, individual client, institutional client and line of business Create actionable information and reporting for decision making STRATEGIC GOAL Mission Deliver financial management information, tools and processes needed to support business planning, budgeting, forecasting and long range planning; management reporting and decision support; cost transparency; profitable growth strategies; and process efficiencies. Improved Data Quality, Access & Hierarchy Management Develop single source of profitability information based on standard and consistent methodologies and definitions Create robust cost and revenue information, centralize data management and improve data information delivery STRATEGIC GOAL

MRA Framework

MRA: “What if…” Analysis – The Art of the Possible

Evolution of Performance Management Future State Transformational Today Best Practice Risk adjusted measure used to evaluate performance, allocate resources, and calibrate incentives Stable Revenue sharing or referral fee arrangements to ensure teaming is fairly rewarded Capital is attributed at the appropriate level based on risk rating Marginal Principles in place governing definition, characteristics and maintenance of the data Comprehensive detailed profitability and performance quantification improving timely, accurate and detail actionable information to enterprise Process Maturity Multiple dimensions are reported, including LoB, prod, client, channel, program / campaign, geography Defined Processes Real-time Information Value Chain Integration Increasing Maturity

MRA Information Delivery

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