How is XBRL Assisting the Investment Community? 23rd June 2009 Andrew Ling, UBS Investment Research

Topics covered Progress Challenges Background Manifesto Relevance Definitions Different perspectives Progress Challenges Relevance Alignment Manifesto

Definitions What constitutes “research” Traditional data analysis What investors want is changing Data is only one part of a research offering This matters because of scale economies that lead to formation of specialised research providers to service investors Traditional data analysis Data provided using proprietary definitions Vendors act as aggregators – provide some standardisation No one provider has comprehensive global coverage

Consumption: Sell-side perspective ??? Data source Corporate Data source Sell-side Filing authority Data source XBRL Data source Data source

Consumption: Buy-side perspective Filing authority Research Corporate Research Buy-side Filing authority Research Research Filing authority Research

Relevance How do I gain “edge”? Inertia Get behind the accounts; identify drivers Extra-financials Impact of macro events Inertia Integration of a new data source costly Combining diverse data sets well is hard Benefit hard to quantify

Alignment Learn from RIXML Understand use cases Make standard relevant Get traditional data vendors on board Investors don’t care about XBRL (and shouldn’t have to) Understand use cases In-depth understanding of companies already owned Search and screening for potential investments Make standard relevant The needs of investors (and analysts) are different from those of financial statement preparers; embrace that difference

Manifesto The tools exist Educate Don’t forget the prose Rise to the challenge and use them XBRL undoubtedly helps Educate Standards setters on perspective of investment community Investment community on benefits of open standards Don’t forget the prose Provides context to the numbers!

Contact Andrew Ling, UBS Investment Research andrew.ling@ubs.com Jack Roehrig, Executive Director, RIXML.org roehrig@rixml.org © RIXML.org Ltd 2009