UBmatrixは業界第一のXBRLソフトウェアを提供します。 XBRL for Regulatory Reporting “How to do it cost efficiently, quickly and well.” Phil Walenga, Director of Financial Services UBmatrix Inc. UBmatrixは業界第一のXBRLソフトウェアを提供します。 Visit us at: www.ubmatrix.com

UBmatrix Solutions and Products 5 T’s of XBRL – It is ready! Agenda UBmatrix Solutions and Products 5 T’s of XBRL – It is ready! Live Demonstration A how to do it checklist √ How long does it take? Results UBmatrix, Inc. (c) 2005 All rights reserved.

UBmatrix’ Solutions and Products

Solutions Production Ready XBRL Taxonomies Production XBRL Solutions Major contributor to IFRS and other Financial Reporting XBRL taxonomies, Contributor to Belgium Bank taxonomy, Dutch Government and COREP Developed: CRAS, FFIEC, KOSDAQ, Sumitomo Mitsui Bank Major Contributor to XBRL Best Practices: FRTA, FRIS, Patterns Document, etc. Production XBRL Solutions Designed and developed XBRL regulatory system - FFIEC Designed and developed a centralized, collaborative XBRL service - CRAS Designed and developed XBRL analytical and publishing system - KOSDAQ The worldwide leader in taxonomy development. Advanced and innovative products. Significant and relevant XBRL implementations around the world. UBmatrix, Inc. (c) 2005 All rights reserved.

FFIEC U.S. Call Report “XBRL is the essential ingredient in the success of the FFIEC Call Report Modernization initiative. With the help of UBmatrix, FFIEC has created new XBRL Call Report Taxonomies that incorporate concepts, instructions, calculations and formulas to allow us to automate the workflow process among the three bank regulators – the FDIC, the Federal Reserve and the OCC.” - Mike Bartell, CIO UBmatrix, Inc. (c) 2005 All rights reserved.

FFIEC Call Report Modernization UBmatrix contributed: Problem definition Proof of concept and prototype development Requirements development Taxonomy architecture and testing Architecture and design consulting Systems developers and development Licensed software for processing XBRL and managing taxonomies UBmatrix was involved with every major part of this XBRL solution. A very large portion of the development was done by our developers. Licensed XBRL software that is available for other regulatory systems was provided by UBmatrix for this system. UBmatrix, Inc. (c) 2005 All rights reserved.

Technology to automate your regulatory reporting systems. Products Technology to automate your regulatory reporting systems. We build solutions using these products and others can do so likewise. Automator used to build the World’s most sophisticated taxonomies. Easier to adopt for your XML engineers – support for XSLT, Xquery, XPath 2.0 XSLT: A transformation expressed in XSLT is called a stylesheet. XPath: provides basic facilities for manipulation of strings, numbers and Booleans. XQuery: provide features for retrieving and interpreting information from these diverse sources. UBmatrix, Inc. (c) 2005 All rights reserved.

Modeling your taxonomies: UBmatrix XBRL Automator Professional UBmatrix, Inc. (c) 2005 All rights reserved.

Managing your taxonomies: UBmatrix Universal Business Server™ UBmatrix, Inc. (c) 2005 All rights reserved.

5 T’s of XBRL – It is ready!!

Technical Specification: XBRL 2.1 is stable Taxonomies are released 5 T’s of XBRL Technical Specification: XBRL 2.1 is stable Taxonomies are released Training available for generic and customized solutions Tested high performance applications Tools offering end to end solution Today I am green with envy – all the pieces are there for a complete XBRL solution for regulatory reporting. End to end solutions from standalone client tools to web-based high performance products are available. Five T’s of XBRL Technical Specification, 2.1 Taxonomies Training Tested applications Tools The Dimensions specification is on the fast track for implementation by November of 2005 and the formula and functions specifications are moving quickly too. Regarding formulas, UBmatrix has implemented the use of formulas in the FFIEC Call Report project and when the XBRL Specification for formulas is complete we will almost immediately transition our software to that specification. Our developer staff is leading the effort in that part of the specification. Because XBRL International has hired two full time experienced XBRL architects the enhancements to the XBRL Specification are moving along much more quickly. UBmatrix, Inc. (c) 2005 All rights reserved.

Demonstration Highlights

Regulatory Reporting Requirements Operate More Efficiently Produce More Timely Data Produce More Accurate Data Save Money Reduce Burden Reduce Risk All these requirements were met with the FFIEC application! Regulators operate in environment where complexity and risks are greater. To meet their missions they need: More and better data without being on site. And they need to do this without adding burden. Our experience in developing the FFIEC Call Report project verifies that XBRL meets these requirements. UBmatrix, Inc. (c) 2005 All rights reserved.

Error-free Reports in 2 Days or Less Collect Quarterly Financial Reports from 8,200 banks 2,157 Line Items 396 Pages of Instructions 3,119 Formulas Multiple errors per report Data released about 60 days after submission Error-free Reports in 2 Days or Less (a) Sub Prime Loans July 1, 2005 – September 30, 2005 FFIEC Call Report Modernization Project. The FDIC (US Federal Deposit Insurance Corporation) lead the XBRL portion of the project and I lead the XBRL effort until I retired. In the past, the FDIC, OCC and FRB in the US modified its quarterly bank Call Report schedules using paper. Copies of paper documents were then circulated for approval before updates were keyed into each supervisors’ system. PDF files, Work and Excel files were sent to six Call Report software vendors who took days to update their software every quarter. The software was then distributed to all 8,200 banks. Bank’s entered the information requested in the software and uploaded it to a contractor using a proprietary electronic format which collected all the files and submitted it to the bank supervisors by their area of responsibility – the banks they are responsible for supervising. Since most of the banks have 30 days to submit the report, processing and error correction did not take place until this point. Because data was validated AFTER THE SUBMISSION, it took weeks to clean up all the reports. And this put undo burden on the bank’s because they had to collect all the information and find the error and resubmit the report. The report is a quarterly collection of financial and data quality information Collected from about the same number of banks in the EU. It includes over 2,000 line items, about 400 pages of instructions that were made available to banks in a PDF or paper format and not integrated into the Call Report software vendors’ products. Over 3,000 data validation formulas that provided both mathematical evaluation and quality “edits’ that check for reasonableness and consistency were only used by the bank regulators. Edits were distributed to the Call Report software vendors, but there was no evaluation of whether the formulas were used or if they were used whether they were consistently applied. Because of these issues, an average of about two errors per report were common and data was often made public about 45 to 60 days after submission. Since the bank’s have 30 days to submit the data, the data was 75 to 90 days old and as such it had limited value. The Uniform Bank Performance Report (UBPR) http://www.ffiec.gov/UBPR.htm uses data from the Call Reports to provide a complete set of ratios and financial information to analyze a bank’s condition. Now the data will be more timely and accurate and this important analytical tool will increase in value. The FFIEC (Federal Financial Institution Examination Council), which is a organization that combines the 5 financial institution regulators in the US, had a goal of providing error free data to the public in 2 days or less. So data now would be published around 32 days at the end of each quarter. This is about 60% less time than when the project first started. All the line items, instructions, calculations and formulas are in a XBRL taxonomy that is distributed to the six Call Report software vendors who can now update their software in less than one hour instead of days. Eight quarters of data is also made available in XBRL format so that the business rules (formulas) can validate the consistency and reasonableness of the data being submitted. Business analysts for the three agencies do not to know XBRL at all to update the reporting requirements. The Call Report taxonomy is developed using a web based system. Business analysts from the three agencies make updates to the line items, instructions, calculations and formulas using this system. Electronic notifications of changes are made to the appropriate managers to review and approve. No paper is required for this process. For the bankers the big change is that the data is validated prior to processing by the regulators. The data is submitted in XBRL format to one central processing site and the data is validated immediately. If there is an error and the error includes an explanation then it is collected for processing. If there is an error without an explanation, then it is returned to the banker for resubmission. UBmatrix, Inc. (c) 2005 All rights reserved. UBmatrix, Inc. © 2005 All rights reserved

Demonstration Outline Web Based Taxonomy Development No need for business analysts to know XBRL Create and Update Concepts Manage Users, Import and Export Metadata Reportability and Data Validation Formulas If( (MonthOf(Context.Period.EndDate) = 3),(cc:RIADXXXX[P0] + cc:RIADXXXX[P0]) <= (cc:RCFDXXXX[P0] * 0.25) + 10000,TRUE) Instructions and Edit Explanations Automatically Update Reporting Tools Update in less than 1 hour This is a very quick demonstration of the many features of our software products that demonstrates our world leading XBRL products. UBmatrix, Inc. (c) 2005 All rights reserved.

UBmatrix, Inc. (c) 2005 All rights reserved. The FFIEC system includes Administrative features as well as the core XBRL ones. System administrators are able to define users, groups, functional entitlements, user notification events and reporting cycles. Notifications are part of the automated workflow built in to the system. Reporting institutions and list of reporting entities can be managed. Metadata can be imported and extracted. UBmatrix, Inc. (c) 2005 All rights reserved.

UBmatrix, Inc. (c) 2005 All rights reserved. The Metadata Management Tool (MMT) can authorize users to query, create and update concepts that elements in published taxonomies. UBmatrix, Inc. (c) 2005 All rights reserved.

UBmatrix, Inc. (c) 2005 All rights reserved. The “Formula” box at the bottom of the screen enables the user to create and edit data validation formulas Some are complex, referencing many concepts and often spanning several reporting periods. Edit explanations are also managed. Complete testing facility built in. UBmatrix, Inc. (c) 2005 All rights reserved.

UBmatrix, Inc. (c) 2005 All rights reserved. 26 Schedules UBmatrix, Inc. (c) 2005 All rights reserved.

UBmatrix, Inc. (c) 2005 All rights reserved. Instructions made available by FFIEC taxonomy. UBmatrix, Inc. (c) 2005 All rights reserved.

UBmatrix, Inc. (c) 2005 All rights reserved. Data validation and capability to link to related elements. UBmatrix, Inc. (c) 2005 All rights reserved.

UBmatrix, Inc. (c) 2005 All rights reserved. Error explanation for data validation errors. UBmatrix, Inc. (c) 2005 All rights reserved.

UBmatrix, Inc. (c) 2005 All rights reserved. After data validation and error correction, banker submits report but is notified of the possibility of rejection. UBmatrix, Inc. (c) 2005 All rights reserved.

Decomposition Analysis (Decision Tree Analysis) The US bank regulators have been using the UBPR for many years to monitor financial institutions. Bankers also have access to this analytical tool. The Call Report is the basis for this report. Call Report data is used to populate the Uniform Bank Performance Report (UBPR) system that provides a comprehensive analytical tool. UBmatrix, Inc. (c) 2005 All rights reserved.

How to do it checklist √

Key Steps Learn the basics of XBRL Select a system to model with well established metadata Develop a pilot or proof of concept Work with a proven solution – Less risk and less cost Establish working groups to communicate project XBRL, Submitters, Other Regulators UBmatrix, Inc. (c) 2005 All rights reserved.

Checklist Use a server and web based system Include automated workflow User, permissions and roles management Taxonomy management - concepts, instructions, references, calculations, formulas and formula explanations Version control taxonomies Instance document management Validate data real time Test taxonomy and formula Data collection software vendor support UBmatrix, Inc. (c) 2005 All rights reserved.

Formula - Validity '"Charge-offs" on "Loans secured by real estate to non-U.S. addressees" (RI-x Part I, M.2., Column x) of $' & cc:RIxxxxxP0] & ' must be less than or equal to the sum of the components of "Charge-offs" on "Loans secured by real estate" (RI-x Part I, 1.x. through 1.f., Column x) of $' & cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] & '. Please revise your reported data. The current balance of X must be less than or equal to the sum of Y? cc:RIADxxxx[P0] <= (cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0] + cc:RIADxxxx[P0]) UBmatrix, Inc. (c) 2005 All rights reserved.

Formula - Reportability 041 - Reporting Status = Agricultural-Small (ExistingOf(cc:RCONxxxx[P0],false) = false AND ExistingOf(cc:RCONxxxx[P0],false) = false AND ExistingOf(cc:RCONxxxx[P0],false) = false AND (ExistingOf(cc:RCONxxxx[-P1Y/-06-end],0) > 0.05 * ExistingOf(cc:RCONxxxx[-P1Y/-06-end],0) OR ExistingOf(cc:RCFDxxxx[-P1Y/-06-end],0) > 0.05 * ExistingOf(cc:RCFDxxxx[-P1Y/-06-end],0)) OR (ExistingOf(cc:RCONxxxx[P0],false) = true AND ExistingOf(cc:RCONxxxx[P0],0) > 0.05 * ExistingOf(cc:RCONxxxx[P0],0))) Each concept is checked against set of questions to confirm institution is submitting correct set of data. UBmatrix, Inc. (c) 2005 All rights reserved.

Formula - Quality 'Your bank`s "Charge-offs and recoveries on Credit card receivables" included in the ownership interests carried as securities (RC-S 8.a. + 8.b., Column C, current minus previous) of $' & (cc:RIADxxxx[P0] + cc:RIADxxxx[P0]) - (cc:RIADxxxx[-P1Q] + cc:RIADxxxx[-P1Q]) & ' seem high when compared to the related balance (RC-S 6.a., Column C) of $' & cc:RCFDxxxx[P0] & '. Currently, the sum of the charge-offs and recoveries is ' & ((cc:RIADxxxx[P0] + cc:RIADxxxx[P0]) - (cc:RIADxxxx[-P1Q] + cc:RIADxxxx[-P1Q])) / cc:RCFDxxxx[P0] * 100 & '% of the ownership interests, which exceeds our tolerance of 25%. Please review your reported data, and explain or revise as appropriate.' Is the outstanding balance reasonable value compared to other time periods? If( (MonthOf(Context.Period.EndDate) <> 3),(cc:RIADxxxx[P0] +cc:RIADxxxx[P0]) - (cc:RIADxxxx[-P1Q] + cc:RIADxxxx[-P1Q]) <= (cc:RCFDxxxx[P0] * 0.25) + 10000,TRUE) UBmatrix, Inc. (c) 2005 All rights reserved.

Formula - Distribution New concept Distribute metadata such as formulas, instructions, etc. based on certain criteria like financial condition. If FinancialInstitution<=2, FormulasHighRating, FormulasLowRating UBmatrix, Inc. (c) 2005 All rights reserved.

Data Collection Tools Web based Desktop tools Small amount of data to collect Desktop tools Generate .xls from taxonomy and enter data Submit .xls or .doc and convert to instance document Create or use SW vendor application Update accurately and quickly Map from submitter systems or hand enter data Submitters systems vendors use taxonomy to generate instance document Submitter transform into format to visually verify data Use formulas to validate data UBmatrix, Inc. (c) 2005 All rights reserved.

It depends How long does it take?

It Depends on……. High or low data volume processor Extent, sophistication and pre and/or post data validation Frequency of reporting Frequency and volume of changes to requirements Version control Number of analysts and their location Commitment to adopt XBRL for many or few purposes Complexity of application Number of regulators involved UBmatrix, Inc. (c) 2005 All rights reserved.

FFIEC Call Report Timeline Research Join Develop Demo. Demonstrate Issue Award Test Enroll Process 9-2000 1-2001 12-2001 2-2002 8-2002 6-2003 6-2005 7-2005 8-2005 10-2005 XML Alternatives 8,200 Banks XBRL US Develop demonstration/feasibility product Senior Executives Request for Proposal End to end test & application accepted All 8,200 banks into system 100 Bank test Contract to UBmatrix and Unisys Since XBRL was a new standard when we first started, we did considerable research and joined XBRL to participate in the specification. A demonstration application was developed and presented to senior executives. Based on the demonstration we developed an expanded feasibility application that was eventually used to provide requirements for the system. Considerable amount of testing was conducted internally and with banks. Since this system combined processing among the regulators and the whole process was entirely new, the project took about two years once the contract was awarded. Today the same system could be implemented in much less time. UBmatrix, Inc. (c) 2005 All rights reserved.

UBmatrix, Inc. (c) 2005 All rights reserved.

Include in timeline Existing metadata conversion to Taxonomy Existing data conversion for sample test data Custom data mappings Custom web UI for Taxonomy Maintenance Custom web UI for Instance document display and management Custom Instance document validation workflows Custom desktop clients Custom ETL for a Data Warehouse or analysis package UBmatrix, Inc. (c) 2005 All rights reserved.

What are the results?

FFIEC Performance Metrics Process 8,200 banks, 114,800,000 data elements 15 Seconds - XBRL and data validate per bank instance document 14,000 to 15,000 data elements per validation pass Seven quarters data for every bank reports with 2,000 data elements Execute 7,000 formulas Report – Approve, Review or Reject Clean rate of 90% versus 70% Performance of the system is excellent. All the banks can be processed in one day if all the institutions submitted the reports in one day. Submissions at this time are provided over a short period of time. When a bank submits its XBRL instance document, the data is validated. If there is a error, the bank is notified and asked to resubmit. Because of this performance of the submission processing is important. Eight quarters of prior period data and the current period are used to validate the data. 14,000 to 15,000 data elements are used in the data validation process. This part of the submission validation takes 15 seconds. UBmatrix, Inc. (c) 2005 All rights reserved.

XBRL Call Report Benefits Cost Savings: $26 million over 10 years Timely Data: 2 days versus 60 days Accurate Data: validate prior to submission Independence: business analysts manage the reports – no need to know XBRL Efficiency: update systems automatically versus manual entry Burden Reduction: validate data real time, update software from web, reuse data for other regulatory requirements Benefits to all the stakeholders is considerable. The stakeholders include banks, bank supervisors, public and market analysts and software vendors. UBmatrix, Inc. (c) 2005 All rights reserved.

© UBmatrix 2005

See us at our booth or suite for more demonstrations Solutions www.UBmatrix.com See us at our booth or suite for more demonstrations Please call or email either of us for further information or an onsite presentation. Phil Walenga, Director Financial Services, UBmatrix. Inc. Phil.Walenga@UBmatrix.com 1-989-837-5959 Work 1-989-600-8525 Cell