IBM financial services and reporting solutions presentation

1. How to Use this Deck
Attn Sellers:
 This is a compilation of several different FSR presentations that emphasizes certain
points & use-cases of FSR
 Use in an ‘ala carte’ manner to create the presentation depending on the audience and
the opportunity
 Before presenting these slides - qualify each meeting agenda – are you hunting for:
– Integrated SEC Reporting solution
– Enterprise Disclosure Management solution
– Automation and enhanced controls around Excel based processes
– Transitioning from GAAP to IFRS
– A combination of above
– All of the above
 Create a customer presentation based on the above criteria
 Also – add relevant analyst coverage of different use cases for FSR located at the end of
the deck

2. How to Use this Deck (cont)
Attn Sellers:
 Slides 1 – 6 are generic and can be used as base slides for most presentations
– 2 – highlights the many manual processes and challenges in the OOF
– 3 – highlights the risks in MS Office to perform critical PM processes and reporting
– 4 – highlights the key capabilities and value drivers of FSR
– 5 – Explains how FSR works – gives context for the rest of the conversation
– 6 - Visually shows the powerful capability of ‘single version of the truth’ using FSR
 Depending on the agenda/problem that the prospect is looking to solve add the relevant
set (or combination of sets) of slides next:
– Integrated SEC Reporting solution
– Enterprise Disclosure Management solution
– Automation and enhanced controls around Excel based processes
– Transitioning from GAAP to IFRS
– What the analysts are saying

3. © 2012 IBM Corporation
IBM Cognos FSR
Governance, Automation and Standardization in the Office of
Finance
Dan O’Brien
April 2012

4. Current Challenges in Office of Finance
 Today’s finance function must be lean and controlled in order to drive value
 Existing processes and infrastructure doesn’t enable compliance, collaboration,
or data quality - making it nearly impossible to operate effectively….
2
Financial
Management
& Reporting
Processes
Global XBRL Compliance
Stock Exchange
Submissions
Balance Sheet
Analysis
Accounting Policy
Management
Statutory accounting
& Reporting (10-K/10-Q)
Consolidated Financial
Statements
Regulatory Reporting
& Industry Submissions
Investor Relations
GAAP/IFRS
Convergence
Internal Management and
Flash Reports
Tax Reporting &
Schedules
Account
Reconciliation

5. Manual Finance & Report-Based Processes no Longer Sustainable
Contributors
Approvers
Report
Consumers
Reviewers
Document
Managers
Consolidations
ERP
Data Warehouse
OLAP
 Manual processes dominate Office of Finance
 Existing report writing systems incomplete
 Over-reliance on MS Excel & unsecure e-mails
 High degree of risk
 Little or no security, controls, audit trail or transparency
 Versioning nightmares, lack of confidence in report data
 Highly paid intelligent people doing low value, time-
consuming tasks and checks
 Addition of global XBRL mandates and increasing
disclosure requirements adds more complexity
 Manual process is repeated each reporting period
• Regulatory reports &
industry submissions
• Statutory accounts &
reports (10-K/10-Q)
• Global XBRL Compliance
• Tax reporting & schedules
• Internal management
reports
• Investor Relations
• Account reconciliation
• Stock exchange
submissions
• Consolidated financial
statements
• Balance sheet analysis
• GAAP/IFRS convergence
Authentic
Enterprise
Data Sources
3

6. Governance, Automation and Standardization
IBM Cognos FSR
Address enterprise disclosure
management
 Timely and accurate statutory,
regulatory and tax reporting
 Single, secure platform for multi-
jurisdictional XBRL compliance
4
Embed governance, audit trail
and controls management
 Increase visibility, standardization
and efficiency across the global
finance operation
Collaborate across a global
enterprise
 Enhance awareness and visibility of
local laws and reporting processes
Increase efficiency and cost
reduction through process
automation
 Accelerate and streamline global
finance operations to significantly
reduce costs
 Increase operational agility and re-
focus effort to more value added
analysis
Enhance data Integrity
 Consolidate explosion of global
financial/operational data
 Eliminate manual manipulation of
data that causes integrity concerns
Integrate with authentic
enterprise data sets
Data flows to reports in FSR

7. IBM Cognos FSR – How it Works
5
IBM Cognos FSR
 Reports are directly integrated with
authentic enterprise data sources
 Changes dynamically updated in
reports
 Leverages the tools already in use:
Microsoft Word and Excel
 Powerful, collaborative environment
 Workflow and task management
 Embedded controls, audit trail
reporting, security & validation
ensure transparency into the
process
 Reports driven from a single, secure
database
 Multiple output formats
Consolidations
ERP
OLAP
Data Warehouse
Contributors Document
Managers
Reviewers
Compliance
Checklists
Business
Rules
Security
Report
Consumers
EDGAR

8. EPS=2.56
Ensure A Single Version of the Truth
6
Financial
Management
& Reporting
Processes
Regulatory Reporting
& Industry Submissions
Statutory accounting
& Reporting (10-K/10-Q)
Global XBRL
Compliance
Tax Reporting &
Schedules
Internal Management and
Flash Reports
Investor Relations
Account
Reconciliation
Stock Exchange
Submissions
Consolidated Financial
Statements
Balance Sheet
Analysis
GAAP/IFRS
Convergence
Accounting Policy
Management
EDGAR-
HTML
EPS=2.56
EPS=2.56
EPS=2.56
IBM Cognos FSR
EPS=2.56
EPS=2.56
Free cash flow
= $1.5B
Profit after tax
= $55M
Free cash flow
= $1.5B
Profit after tax =
$55M
Free cash flow
= $1.5B
Profit after tax
= $55M

9. © 2012 IBM Corporation
Integrated SEC Reporting Solution
Single source solution for EDGAR & XBRL compliance

10. Regulatory Reporting
& Industry Submissions
Statutory Accounting
& Reporting (10-K/10-Q)
Global XBRL Compliance
Tax Reporting &
Schedules
Internal Management
and Flash Reports
Investor Relations
Account
Reconciliation
Stock Exchange
Submissions
Consolidated Financial
Statements
Balance Sheet
Analysis
GAAP/IFRS
Convergence
Accounting Policy
Management
IBM Cognos
FSR
Integrated SEC Reporting Solution

11.  Limited Liability being phased out
– Phase 1 filers – already phased out
– Phase 2 filers – phased out this year
– Phase 3 filers – phased out next year (approx 6500 companies)
 XBRL ‘filed’ and no longer ‘furnished’
 Other risks include having 2 different sets of financial data in the public domain
(EDGAR-HTML and XBRL)
 Consider risks associated with sensitive pre-earnings release data being exposed:
– Confidentiality agreements in place?
– Do you have cloud computing exposure/controls?
Integrated SEC Reporting Solution
SEC XBRL Mandate - Update

12.  Greater control
 XBRL becomes a part of normal reporting regimen
 Integration with source data allows report data to change without re-tagging
 Embedded business rules, automated validations help catch mistakes early in the process
 Enhanced transparency and audit-trail reporting over the entire XBRL tagging process
Integrated SEC Compliance Solution
Benefits of integrated XBRL solution
EDGAR-HTML

13. Integrated SEC Compliance Solution
IBM Cognos FSR SEC Reporting Package
 Easy to implement software and services package:
 IBM Cognos FSR w/embedded EDGAR-HTML and XBRL
 Packaged training and implementation offerings
 Quick start report setup and XBRL mapping/tagging packages
EDGAR-HTML

14. © 2012 IBM Corporation
Enterprise Disclosure Management

15. Regulatory Reporting
& Industry Submissions
Statutory Accounting
& Reporting (10-K/10-Q)
Global XBRL Compliance
Tax Reporting &
Schedules
Internal Management
and Flash Reports
Investor Relations
Account
Reconciliation
Stock Exchange
Submissions
Consolidated Financial
Statements
Balance Sheet
Analysis
GAAP/IFRS
Convergence
Accounting Policy
Management
IBM Cognos
FSR
Enterprise Disclosure Management

16.  Dynamic reports automatically update in near real-time
from authentic data sources
 24 x 7 access to authentic enterprise data without
involving IT
Integrate with authentic
enterprise data sets
Data flows to reports in FSR
Enterprise Disclosure Management

17.  Create reports once…no need for one off or recreating
reports each week/month/quarter
 Use “variables” to change once...update everywhere
 Variable used is ringed... …and how it looks when the
report is generated
Enterprise Disclosure Management (cont)
Reinsurance and other amounts recoverable reflect amounts due from
reinsurers and policyholders to cover incurred but not reported and pending
claims for minimum premium products and certain administrative services only
business where the right of offset does not exist. See Note 10 for additional
information on reinsurance. For the three months ended March 31, 2012,
actual experience differed from the Company’s key assumptions resulting in
favorable incurred claims related to prior years’ medical claims payable of $40
million, or 0.5% of the current year incurred claims as reported for the year
ended December 31, 2011. Actual completion factors resulted in a reduction in
medical claims payable of $17 million, or 0.2% of the current year incurred
claims as reported for the year ended December 31, 2011 for the insured book
of business. Actual medical cost trend resulted in a reduction in medical claims
payable of $23 million, or 0.3% of the current year incurred claims as reported
for the year ended December 31, 2011 for the insured book of business.
Reinsurance and other amounts recoverable reflect amounts due from
reinsurers and policyholders to cover incurred but not reported and pending
claims for minimum premium products and certain administrative services only
business where the right of offset does not exist. See Note ##rnote for
additional information on reinsurance. For the ##D<cqmel> ##D<cqe>, actual
experience differed from the Company’s key assumptions resulting in
##D<cqqheamcpfavor> incurred claims related to prior years’ medical claims
payable of $##D<cqqheamcppyin*-1> million, or ##D<cqqheamcppyd%in> of
the current year incurred claims as reported for the year ended ##D<cye-1>.
Actual completion factors resulted in ##D<cqqheamcpcfactordir> in medical
claims payable of $##D<cqqheamcpcfactor> million, or
##D<cqqheamcpcfactor%> of the current year incurred claims as reported for
the year ended ##D<cye-1> for the insured book of business. Actual medical
cost trend resulted in ##D<cqqheamcptrenddir> in medical claims payable of
$##D<cqqheamcptrend> million, or ##D<cqqheamcptrend%> of the current
year incurred claims as reported for the year ended ##D<cye-1> for the
insured book of business.
Reinsurance and other amounts recoverable reflect amounts due from
reinsurers and policyholders to cover incurred but not reported and pending
claims for minimum premium products and certain administrative services only
business where the right of offset does not exist. See Note 10 for additional
information on reinsurance. For the three months ended March 31, 2012,
actual experience differed from the Company’s key assumptions resulting in
favorable incurred claims related to prior years’ medical claims payable of $40
million, or 0.5% of the current year incurred claims as reported for the year
ended December 31, 2011. Actual completion factors resulted in a reduction in
medical claims payable of $17 million, or 0.2% of the current year incurred
claims as reported for the year ended December 31, 2011 for the insured book
of business. Actual medical cost trend resulted in a reduction in medical claims
payable of $23 million, or 0.3% of the current year incurred claims as reported
for the year ended December 31, 2011 for the insured book of business.

18. Enterprise Disclosure Management (cont)
Activity Dashboard
 See what everyone is working on at any time
 Complete transparency into the process
Business rules and automated validation
 FSR automatically finds errors and report discrepancies
Robust audit trail reporting
 Track all changes – who made the edit? When? Where?
 Compare and blackline any 2 versions of the document
Workflow & Task Management
 Visibility into every step of the approval process
 Integrate workflow steps to compliance checklists to ensure proper checks are
completed

19. Enterprise Disclosure Management (cont)
 Extend controls and transparency to XBRL tagging
 Experienced global XBRL services & support
 Support for multiple global GAAP and IFRS taxonomies as well as industry specific
taxonomies such as Solvency II and COREP/FINREP

20. Enterprise Disclosure Management (cont)
Consolidated GAAP Financial
Statements and Footnotes
MD&A
Operational & Risk Measures
Asset Management
BU 1Sales & Revenue
BU 2 Sales & Revenue
Plan and Forecast Data
Executive Compensation
CEO/CFO packs Board Books Monthly close package reports
Regulatory & Statutory reports Plan & Forecast packs
Key

21. © 2012 IBM Corporation
Automate and Control Excel-based
Processes

22. Regulatory Reporting
& Industry Submissions
Statutory Accounting
& Reporting (10-K/10-Q)
Global XBRL Compliance
Tax Reporting &
Schedules
Internal Management
and Flash Reports
Investor Relations
Account
Reconciliation
Stock Exchange
Submissions
Consolidated Financial
Statements
Balance Sheet
Analysis
GAAP/IFRS
Convergence
Accounting Policy
Management
IBM Cognos
FSR
Automate and Control Excel-based Processes

23. Automate and Control Excel-based Processes
 Critical performance management processes occur in hundreds of offline, unsecure
spreadsheets:
 Ensure G/L balances tie out to sub-ledger
 Ensure balanced between disparate systems tie out
 Ensure values recorded tie out to contractual commitments
Risks include:
 Lack of overall visibility
 No audit trail
 Inefficient Process
 Risk of Errors
 Collaboration is difficult

24. Automate and Control Excel-based Processes
 Using IBM Cognos FSR you can pull data from multiple datasets into a single,
secure database and automate reconciliation processes to find deltas
 The benefits include:
 Enhanced collaboration
 Complete visibility over each step in the process
 No more manual data collection and checking – no a highly efficient process
 Reduced risk of errors
 Automatic rollover to next period

25. © 2012 IBM Corporation
Transitioning from GAAP to IFRS

26. Regulatory Reporting
& Industry Submissions
Statutory Accounting
& Reporting (10-K/10-Q)
Global XBRL Compliance
Tax Reporting &
Schedules
Internal Management
and Flash Reports
Investor Relations
Account
Reconciliation
Stock Exchange
Submissions
Consolidated Financial
Statements
Balance Sheet
Analysis
GAAP/IFRS
Convergence
Accounting Policy
Management
IBM Cognos
FSR
Transitioning from GAAP to IFRS

27. Transitioning from GAAP to IFRS
Over 100 countries require or
permit IFRS or are in the process
of adopting it
 Using FSR – Organizations can manage the IFRS
conversion process and support dual reporting
requirements within a controlled process
 Manage GAAP & IFRS reports and reconciliation
disclosures
 Tag using both GAAP and IFRS taxonomies
 Document changes to accounting policies and define
impact
 Drive standardized policies across subsidiaries

28. © 2012 IBM Corporation
What the Analysts are Saying

29. IBM Cognos FSR for Internal Reporting
“Ventana Research recommends that companies that have, or are considering purchasing
software to automate their filing and XBRL tagging process should use this software as
broadly as possible and establish a mechanism to ensure that this will happen.”
 FSR offers much higher ROI than just this narrow
purpose of SEC compliance
 FSR automates and streamlines many manual
processes in the OOF and by implementing FSR you
will ensure higher economic benefit of your
investment in SEC filing solution
Source : Ventana Research - Extracting the Full Value of SEC Filing Software

30.  “Nucleus found that application enabled companies to increase
the productivity of the finance department and report builders in
non-finance roles. Better decision making was also a benefit.”
 “Board books, packages for senior management, and
management presentations are all examples of documents that
accountants created far more rapidly with IBM Cognos FSR.”
 “Nucleus found the savings can be significant/ Finance
departments often have accountants who dedicate all of their
time to report building. By using IBM Cognos FSR to free up one
accountant, a company can save an average of $100,000
annually.”
IBM Cognos FSR for Internal Reporting
Source : Nucleus Research Note – Assessing the Reporting Benefits of IBM Cognos FSR; ROI Case
Study – IBM Cognos FSR
“By governing management reporting from the finance department, companies gave
senior management and CFOs control over strategic decision making and more
visibility.”

31. ROI: 51%
Payback: 1.8 years
Average annual benefit: $212,077
 Avoided printer costs and headcount growth
 Improved productivity
 Automation from FSR reduced the amount of time spent by
accountants on the quarterly filing process by 91%
Source : ROI Case Study – IBM Cognos FSR
IBM Cognos FSR for SEC Reporting
FSR enabled the company to avoid printer costs and headcount growth while also
improving productivity

32. Process Sluggishness and Productivity Gaps Stand Out
 Wide gaps exist between
organizations that excel in financial
reporting – and those that fall well
behind
 Top performers run the quarterly
earning course in half the time it
takes the bottom performers
Source : APQC – Fast Delivery of Complex Financial Reports – How Leading CFOs Do It

33. Fast Reporters Shine in Other Respects
33
 Top Performers outshine other groups in
both staff productivity and costs related to
reporting
 Top Performers deploy just 1.2 FTEs per
$1B in revenue….just 16 cents per $1K to
get the job done
 Laggards are not only slow in reporting –
they also need 10.3 FTEs, and they spend
$1.09 to perform basic financial
management and reporting
Source : APQC – Fast Delivery of Complex Financial Reports – How Leading CFOs Do It

34. Fast Reporters Handle More Complexity
 Top Performers cope with heavier
reporting requirements – managing
financial consolidation and reporting for
an average of 51 entities
 Laggards are simply not prepared to
compete and manage risks today:
 Lack of common data across the
enterprise
 Poor reporting disciplines
 Lack of standardized and integrated
systems
Source : APQC – Fast Delivery of Complex Financial Reports – How Leading CFOs Do It

35. Product Demo – IBM Cognos FSR

36. For more information:
Visit us on the web:
http://www-01.ibm.com/software/analytics/fsr/cognos-fsr/

37. Q&A

38. © 2012 IBM Corporation