What you should know about XBRL & EBRC xbrl ebr360

1. What you should knowabout XBRL & EBRChttp://www.xbrl.orghttp://www.ebr360.org Mike Willis Founding Chairman, XBRL International Partner, PricewaterhouseCoopers mike.willis@us.pwc.com Dr. Robert G. Eccles Managing Director, Perception Partners, Inc. reccles@perceptioncos.com

2. XBRL Discussion Topics • What is XBRL • Why it is relevant • How XBRL enhances analysis • How XBRL lowers delivery costs • How XBRL Enhances Compliance Processes • Lower Costs • Better Controls

3. What is XBRL?Why is it relevant? International information format designed for business information Paper based reports dictate downstream manual processes.

4. What is XBRL? • eXtensibleBusiness Reporting Language • International platform for corporate reporting • A standard that enhances the quality and efficiency of business data for internal and external consumers • Each piece of information is assigned a unique, predefined tag (like a “barcode”) identifying the information’s content and structure • Tags give data identity and context that can be understood by a range of software applications allowing data to interface with databases, financial reporting systems and spreadsheets • Can be used to enhance compliance processes An International Business Reporting Format Standard

5. XBRL International, independent non-profit consortium • Develops and maintains the XBRL Standard • Recognizes and encourages XBRL best practices • Provides a framework for further development • Facilitates knowledge sharing with members • Supports XBRL Jurisdictions Russia United Kingdom United States France IASB Sweden Belgium Japan Canada Korea Denmark Poland Ireland China Germany Spain Netherlands Singapore Switzerland New Zealand Colombia Italy Brazil Australia United Arab Emirates South Africa Argentina

6. Reuters Results in Adobe http://about.reuters.com/investors/results/archive/2006.asp

7. Reuters Results in XBRL

8. Reuters Results in Adobe

9. Publish Collect Business Reporting Processes Analyze Validate

10. The business reporting supply chain Companies Financial Publishers and Data Aggregators Investors Central Banks Participants Trading Partners Auditors Regulators Management Accountants Software Vendors ACORD XBRL Ledger XBRL External Reporting Business Operations Internal Business Reporting External Business Reporting Investment, Lending, Regulation Economic Policymaking Processes

11. Its a manual supply chain • Costs impacts scope of analysis • Access is manual • Validation is a user problem • Coverage dwindling (impacting capital costs) • Reuse is impacted by • Timeliness (not timely in a manual process) • Comparability (? – no idea) • Zero Context adversely impacts processes • Regulatory standards • IP creation, management & reuse

12. Impacts of standardization • Lower costs • Higher precision • Increasing volumes • Accelerated frequencies • Enhanced resource allocations • More efficient processes • New markets

13. Enhancing Analysis Current Problems: Proprietary formats drive manual transfers and processes Untimely, limited scope and unforeseen transformations adversely impact analysis

14. Demo on what XBRL means to an investor. Ease of Access Ease of IP creation, management, sharing and reuse.

15. Demo on what XBRL means to an investor. Direct access to EDGAR Ease of information reuse.

16. Standardization Presentation Cash & Cash Equivalents References GAAP I.2.(a) Instructions Ad Hoc disclosures Label cashCashEquivalentsAndShortTermInvestments Calculation Cash = Currency + Deposits FormulasCash ≥ 0 Contexts US $ FY2004 Budgeted Validation XBRL – More Than Just Definitions Presentation Comptant et Comptant Equivalents Presentation 現金及び現金等価物 Presentation Гроші та їх еквіваленти Presentation Деньги и их эквиваленты Presentation Kas en Geldmiddelen Presentation 现金与现金等价物 Presentation Geld & Geld nahe Mittel XMLItem XBRL Item XBRL Item

17. Lowering the Cost of Information Delivery Current Problems: Current formats combine content and presentation requirements. No reuse of presentation and analysis templates.

18. Rendering from XBRL • XBRL is a universal information format. As such, it can be used to render the reported information into a wide range of other applications and formats: • XML (xml) • Browsers (html) • Excel (xls) • Adobe (PDF) • Word (doc) • Others • This reduces the time/cost required to generate these alternative file format documents.

19. UTC XBRL document http://www.sec.gov/Archives/edgar/data/101829/000119312505247623/utx-20051021.xml

20. UTC Rendered via Excel

21. UTC Rendered via Excel

22. UTC Rendered via Browser

23. Enhancing compliance processes Current Problems: Disparate proprietary technologies Manual processes and manual controls

24. XBRL Gov Agencies Bonding Agencies Business Partners Tax Agencies Auditors Regulators Banks Pinwheel Pinwheel Ping Pong Ping Pong Supplemental information aggregation Problem Problem Current Manual Reporting Process Business segments ERP Application Consolidation Reporting Application ERP Application ERP Application

25. XBRL is designed to reduce the costs associated with reporting. If you treat it as an incremental requirement, it will result in incremental costs. If you leverage it to transform reporting processes, it will provide process enhancements and cost reductions. Here is how…… XBRL Govmt Agencies Regulators Investors Business Partners Tax Agencies Banks Bonding Agencies XBRL Reports Collaborative Supplemental information aggregation XBRL XBRL Reporting Model Business segments ERP Application Consolidation Reporting Application ERP Application ERP Application

26. Standards-based XBRL publishing of financial data – Cartesis example Compliance Efficiency • Directly integrated with your companies financials in the Cartesis 10 suite • Internal and external reporting • Compliance reporting • Direct access to the IDM for trusted publication of internal and external results • Support any taxonomy and required mappings • Map once and reuse for automated reporting

27. Cartesis XBRL Publishing : home page

28. Drag and drop to map accounts to taxonomy elements Cartesis XBRL Publishing: example of mapping Load selected taxonomy Get data from the IDM (accounts/flows)

29. Cartesis XBRL Publishing : instance document Publish appropriate numbers: (opening/closing/duration) Preview instance documents

30. Leveraging XBRL for External Financial Management • Unique new benchmarking capabilities • Competitive, peer and ad hoc • Integrating data from EDGAR Online • Clear value in M&A scenario analysis • Builds on early leadership in XBRL publication

31. This is a side-by-side comparison of a companies Actuals in Cartesis Finance and competitive data brought in from EDGAR Online All EDGAR Online data is swept into the Cartesis 10 Integrated Data Model (IDM). This makes the data persistent and directly available for calculations, analysis and for use as drivers in all Cartesis 10 BPM processes

32. In addition to the full P&L, Balance Sheet and Cash Flow statements, you can get a full set of standard metrics from EDGAR Online. Because the data is persistent, key metrics can be calculated on a companies own data and that of my competitors/peers from EDGAR Online, like growth, % revenue, etc…

33. Since all performance data is in the IDM, it is available in Cartesis Analytics for all business users to leverage the competitive data for comparison and ah-hoc analysis

34. Users can drill down, slice-and-dice and analyze all data along side their current Actuals, including the ability to chart and graph all data Users also have direct access to I-Metrix for real-time benchmarking

35. Key Messages!! • XBRL enables transformation of pervasive manual to more automated processes • Automated processes = less manual processes • Automated processes = less manual controls • More automated controls = less process time • Automated processes = less costs • XBRL early in the processes = less cost, more controls, more information and time.

36. Preparer Process Improvements • Disparate data aggregated in a more automated manner • Controls are effective and consistently applied • Supplemental disclosure information is aggregated in a more automated and controlled manner • Review is more collaborative, timely and automated • Explicit connectivity of content with policies & standards • XBRL TaxonomyTags is automated earlier in the process removing the redundant review processes • Distribution to stakeholders is automated • Decreased effort for a variety of presentations

37. What is EBR? A market driven process to extend a conceptual framework. http://www.ebr360.org

38. Past Present Future The Need for Enhanced Business Reporting Business Reporting: A Changing Dynamic: Historical Financial Statements Enhanced Business Reporting • Lagging indicators… • One size fits all (GAAP) • Ignores non-financial measures • Reports results of past decisions • Periodic • Historical • Cost-basis • Financial only • Statements • Backward-looking • Leading indicators… • Tied to mission, vision and values • Tied to factors critical to success • Moves decision criteria to forefront • On-demand • Real-time/future • Value-basis • Comprehensive • Custom reports • Forward-looking

39. What is Enhanced Business Reporting? Value Creation Value Preservation Value Realization InvestmentCommunity Companies A Better Managed Company Companies create sustainable economic value by developing, operationalizing and executing superior strategies which guide the company towards delivering valuable products and services. These strategies yield future cash flows greater than investment or economic profit. Companies preserve the value of the underlying business unit cash flows through effective management controls, risk and tax management. Companies ensure that investors realize the value created by the business units and the corporate center by managing and delivering upon market expectations.

40. What is Enhanced Business Reporting? • Providing shareholders and other stakeholders the information they need to make decisions • Financial and nonfinancial value drivers • Tangible and intangible assets • Integrated management and reporting of risk and value • Voluntary transparency beyond regulatory reporting requirements • A way to move beyond The Earnings Game

41. Tier Three Company-Specific Information Tier Two Industry-Based Standards Tier One Global Generally Accepted Accounting Principles A Three-tier Reporting Model Source: Building Public Trust by Samuel DiPiazza and Robert Eccles

42. Enhanced Business Reporting Framework Enhanced Business Reporting Frameworkwww.ebr360.org Business landscape Overview Competition Customers Technological change Shareholder relations Capital availability Legal Political Regulatory Strategy Business model Organization Governance Risk management Environmental & social Business portfolio Resource allocation Product life cycle Enhanced Business Reporting Framework Performance Profitability Liquidity Operating Segment Competencies & resources Key processes Customer satisfaction People Innovation Supply chain Intellectual property Information & technology Financial assets Physical assets

43. Example industry-specific value drivers • Key value drivers vary by industry • Following are example industry value drivers that extend the business reporting framework. • Note that many of these value drivers are not included in GAAP. • Financial and non-financial information is important • Tangible and intangible assets are important • For most value drivers, standard definitions and metrics for measurement and reporting do not exist

44. Banking Insurance • Fee-based Revenue Growth • Delivery Channels • Economic Profit • Performance by Business Segment • Market Risk Exposure • Cost/Income • Market Share • Assets Under Management • Employee Satisfaction • Brand Equity • Product Innovation • Investment Performance • Degree of Diversification • Regulatory Reputation • IT Expenditures • Performance by Business Segment • Expense Ratio • Capital Management • Risk Management Practices • Plans for Growth • Investment Performance • Distribution Channels • Quality of Management • Earnings • Asset/Liability Management • Return on Risk • Adjusted Capital • Market Growth • Customer Retention • Capital Adequacy • Claims Ratio • Economic Profit • Employee Satisfaction • Customer Penetration • Market Risk Exposure • Assets Under Management • Asset Quality • Embedded Value • IT Expenditures • Brand Equity • Product Innovation • Regulatory Reputation • Market Share • Loan Loss • Earnings • Capital Adequacy • Risk Management Practice • Customer Retention • Customer Penetration • Asset/Liability Management • Asset Quality • Return on Risk Adjusted Capital • Capital • Management • Quality of Management • Plans for Growth • Market Growth Example industry-specific value drivers Source: PwC ValueReporting Capital Markets Surveys

45. Investment management High Technology Telecommunications • Competitive Landscape • Capital Expenditures • Market Growth • Customer Churn Rate • Regulatory Environment • Pricing Strategy • Network Reach, Quality & Capability • Earnings • Revenue Metrics by Driver (e.g. Average Revenue per user) • Significant Operating Costs by Category • Sales & Marketing Strategy • Cash Flow by Business Segment • Profit Margins • Investment Product Performance • Quality of Management • Asset Growth from Investment Performance • Asset Growth from Product Cash Flow • Employee Retention • Compensation Levels of Professional Staff • Asset Retention • Competitive Landscape • Product Diversification Strategy • Strategic Direction • Cash Flow • Market Growth • Gross Margins • Quality/Experience of Management Team • Market Size • Competitive Landscape • Earnings • Speed to Market (first to market) • Market Share • Compensation Strategy • Investment in Technology to Improve Business Processes • Assets under Management • Enterprise Risk Management • Market Share • Experience/Quality of Investment Research Professionals Example industry-specific value drivers Source: PwC ValueReporting Capital Markets Surveys

46. Example industry-specific value drivers Source: PwC ValueReporting Capital Markets Surveys Chemicals Metals Mining • Free Cash Flow • Strategic Direction • Manufacturing Costs • Earnings • Market Growth • Performance by Business Segment • Product Quality • Quality of Management • Capital Expenditure • Utilization of Facilities • Market Share • Customer Loyalty • Market Share • Energy Prices & Supply • Earnings • Costs per Ton Delivered • Market Growth • Metals Prices • Capital Expenditures • Performance by Business Segment • Potential Supply Globally & Locally • Utilization of Facilities • Product Quality • Free Cash Flow • Age & Quality of Plant • Strategic Direction • Value of Tangible Assets • Implementation of New Processes & Technologies • Quality of Management • Regulatory Environment • Strategic Direction • Cash Cost per Ounce/Kg/Ton • Capital Expenditures • Earnings • Existing/Potential Environmental Liabilities • Health & Safety Performance Statistics • Metal Prices • Quality of Management • Acquisition Strategies • Ounces/Kilograms/Tons Produced per Year • Performance by Business Segment • Cost per Ounce/Kg/Ton • Labor Relations • Sustainable Development Strategy • Environmental Policy/Risks • Potential Supply/Production Globally & Locally

47. Diversified Manufacturing Consumer Goods • Free Cash Flow • Performance by Business Segment • Market Growth • Earnings • Manufacturing Costs • Quality of Management • Strategic Direction • Capital Expenditures • Market Share • Product Quality • Capital Expenditure • Free Cash-flow • Sales Volume • Quality of Strategy • Growth of Strategy • Performance by Business Segment • Market Growth • Performance by Geographic Market • Marketing Strategy • Customer Loyalty & Advocacy • Customer Service • Weighted average cost of capital • Employee Satisfaction & Advocacy • Earnings • Sales & Gross Margins by Product Category • Market Share • Product Innovation • Marketing Costs • Brand Portfolio Management Date • Percent of New Products in Sales • Employment, Environmental Policies • Product Range Development • Stock Levels in the Supply Chain • Distribution Channel Complexity Example industry-specific value drivers Source: PwC ValueReporting Capital Markets Surveys

48. Retail Real Estate • Market Growth • Earnings • Same Store Sales • Gross Margins • Free Cash-Flow • Market Share • Performance by Business Segment • Store Portfolio Changes (e.g., new stores) • Weighted Average Cost of Capital • Customer Satisfaction • Expected Return on New Stores Refurbishment • Quality of Management • Capital Expenditure • Sales per Square Foot • Inventory Turns • New Store Formats Tested & Performance Data • Brand Value • Product Availability • Financing Strategy • Occupancy Rate • Macro-Economic Factors (e.g., GDP growth, inflation, population & job growth, interest rates) • Investment Strategy • Return on Invested Capital • Revenue from New Developments or Acquisitions • Investment in New Acquisitions & Development Properties • Earnings • Market Rental Rate • Quality of Management • Free Cash Flow Example industry-specific value drivers Source: PwC ValueReporting Capital Markets Surveys

49. Example industry-specific value drivers Source: PwC ValueReporting Capital Markets Surveys Automotive Entertainment Utilities • Earnings • Free cash flow • Market Share • Strategic direction • Product quality • Customer satisfaction • Market Growth • Facility or capacity investment strategy • Sales volume • Performance by business segment • ROIC • Market Growth • Market Share • Free Cash Flow • Performance by Business Segment • Customer Demographics • Quality of Management • Earnings • Strategic Direction • New Business • Capital Expenditure • Cost reduction • Investment/acquisition strategy • Margin improvement • Market growth • Operating cash flow growth • Operating profit growth • Quality of management • Regulatory environment and price controls • Risk Management processes • Strategic direction and focus - integrated vs. specialist player

50. Pharmaceuticals Petroleum • Supply, Demand and Prices for Petroleum Products by Region • Cash Flow • Unit Cost by Refinery • Value of Proven & Probable Reserves • Refinery Margins by Region • Capital Expenditures • Strategic Direction • Reserve Replacement Costs • Refinery Utilization • Refinery Acquisition Cost of Crude • Earnings • Supply, Demand & Prices for Crude Oil & Natural Gas • Performance by Business Segment • Exploration Success Rate • Return On Average Capital Employed or Similar Return Measure • Quality of Management • Petroleum Product Sales by Volume by Refinery • Risk Management • Quality of Workforce • Hedging Strategy • Market Share • Operating Profit per Equivalent Measure by Geographic Location • Market Growth & Potential by Therapeutic Area • Product Focus Strategy • Earnings • R&D Pipeline • Market Share by Therapeutic Area • Regulatory Issues • Product Innovation Strategy • Performance by Business Segment • Effectiveness of Product Launch • Reputation with Prescribers • Quality of Management • Market Growth & Potential by Geographic Area • Market Growth by Geographic Market • Partnering Strategy • Cost/Revenue Ratios • Quality of Selection of Development Targets • Recruitment & Retention of Talented People • Risk Profile of Product • Efficiency of Manufacturing Facilities • Profitability of Licensing Arrangements • Economic Profit • Value of Key Intellectual Assets • Brand Awareness of Levels with Patients Example industry-specific value drivers Source: PwC ValueReporting Capital Markets Surveys