IBM Global Financing

1. IBM Global Financing Teaming with Business Partners to Accelerate Business and Increase Profitability

2. “…limited funding for investment is the second most significant obstacle to innovation.” —765 CEOs in IBM’s 2006 CEO study Financing can help you differentiate “….in many situations, technology leasing offers greater operational, strategic, and financial benefits than outright ownership.” —William Roch, IDC, April, 2005

3. About IBM Global Financing Experts in financing technology and solutions • Unlike banks, we focus primarily on solution and technology financing • We provide single-source financing that helps clients acquire business services and technology services, hardware and software ― IBM and non-IBM • We offer flexible financing with competitive rates to businesses of all sizes and across all industries • We offer complete financial plans for the lifecycle of an investment The world’s largest provider of technology financing • We have a worldwide asset base of more than US$34 billion and serve more than 125,000 clients in over 50 countries • We provide financing for 91 of the 100 biggest U.S. corporations • We are a primary provider of technology financing for small and mid-size businesses

4. Close More Business Resellers & Solution Providers IBM Global Financing Value Propositions Improved Cash Flow Improved Profitability Increased Customer Satisfaction Increased Customer Loyalty Increased Account Control Reduced Ownership Costs

5. IBM Global Financing Value Propositions for Resellers/Solution Providers Close More Business • Meet all your customers needs in terms of better cash management, flexible payment options, budget constraints, asset management, disposal and technology upgrades • Fit more into customer's budget and help them build a strong business case for their investment • IBM Global Financing Asset Recovery Solutions can simplify the process of recycling, selling or disposing of your clients’ retired PCs, to help them make room for new PCs • Leverage the “Rapid Online Financing” tool to complete simple financing transactions under $500K from start to finish, in less than one hour • Mid-lease sales opportunities lead to up-selling and cross-selling, driving incremental sales volume and revenue Improved Cash Flow • Settle with IBM directly and get paid faster • Reduce Days Sales Outstanding (DSO), to free up your line of credit for other business requirements and minimize interest expense Improved Profitability • Fees paid out when financing is incorporated in the contract • Maintain higher margins by leveraging the low monthly payment resulting from Fair Market Value financing • Increase client purchasing power, providing more opportunities for value-added sales of hardware, software and services

6. IBM Global Financing Value Propositions for Resellers/Solution Providers (cont’d) Increased Customer Satisfaction/Loyalty • Provide customers with low monthly payments and a lower Total Cost of Usage (TCU) • Provide one stop shopping for your customer - Ability to finance a multifaceted IT soluton...through a single contract • Facilitate customer growth • An IBM Global Financing customer grows 30-50% faster than a purchase customer Increased Account Control • Maintain the "financial footprint" for increased account control and insight into budget and timing • Financing provides additional customer touch opportunities • Minimize competitive exposure with 3rd party lessors • Create an 'impending event' for hardware decisions, increasing both marketing focus and predictability Reduced ownership costs • Since IBM Global Financing takes a residual value risk in an FMV lease, the cost of ownership can be reduced and that savings may either be passed on in it's entirety to your customer or it will enable you to avoid discounting to margins that have poor yields

7. Using IBM Global Financing resources to help IBM Business Partners grow • Preserves Business Partner working capital • Helps Business Partners serve their clients with IBM Global Financing competitive offerings • Offers Business Partners access to IBM’s global reach and presence through worldwide offerings and financing in multiple countries • Shifts the credit risk to IBM • Provides Business Partners with comprehensive online management tools

8. IBM Global Financing—The first choice for IBM Business Partners IBM Global Financing is a primary technology-financing partner used by IBM Business Partners Financing is critical to the sales efforts of IBM Business Partners • Earn incentives from IBM Global Financing • Increase follow-on sales with ongoing leasing relationships • Reduce sales inhibitors by eliminating large, up-front payments • Reduce “Days Sales Outstanding” (DSO) and get the full revenue from the acquisition from IGF immediately upon customer acceptance The leader in partner satisfaction: Business Partners consistently rate IBM Global Financing’s support and responsiveness better than other working capital providers

9. Small Ticket Financing:Financing Advantage A “One-Stop” Financing Solutionbased upon ”Speed & Simplicity” • Transactions up to $300,000 • All “IT” Products and Brands • Reseller Fee Program • 1% Fee paid to the BP for Total Amount Financed • Aggressive Software & Services Financing • 100% Soft Content Financing Available • Partnering with LGI Financial Solutions • Full Support: From quotes to contracts to funding • (800) 727-4271 • www.financingadv.com / solutions@financingadv.com

10. IBM Asset Recovery Solutions • Asset Recovery Solutions (ARS) is: • A global solution for asset recovery which minimizes the risks, the costs, and the hassle associated with IT asset disposition, and maximizes the value returned for marketable IT assets – for your customers’ assets as well as your own. • Simple, secure and hassle-free disposal • Global availability • Single point of contact for worldwide project management • Creative, flexible solutions for all IT equipment – IBM and non-IBM • Online web tool with immediate online quotes - offers buyback quotes for quantities from 1+ • http://www-1.ibm.com/financing/dispose/ or 1-888-SHOP-IBM x7165 • Business Partner 3% Lead Referral Fee for providing customer leads that close in an ARS contract http://www-03.ibm.com/financing/partner/us/recovery/referralfee.html

11. Global Asset Recovery – SALES FLASH http://www-03.ibm.com/financing/gars_salesflash/garsnewsflash_v3.html

12. And we are enhancing our customer Value Proposition…….

13. PC Lifecycle Management Increasingly, customers are looking beyond the up front purchase price of PCs to evaluate the TCU (Total Cost of Usage) When you bring IBM Global Financing early into the sell cycle, you can assure that you are addressing the essential PC Lifecycle components required for a successful sales campaign

14. Ride the IBM Global Financing PC Lifecycle to Success • Setting the strategy • How to organize the deployment • Multi-vendor and/or multi-country planning • Clearing out the older existing PC inventory • Selling older equipment that still has value • Disposing of worthless equipment • Financing alternatives • Availability of capital • Lowest cost of use • Preferred accounting treatment • Optimal useful life • How long to keep PCs • Disposing of PCs • Compliance with multiple environmental regulations • Protection against unwanted and costly data security breaches • Minimizing the total cost of use • Identifying and controlling costs throughout the entire PC Lifecycle • Management of PC assets • Knowing where assets are, what’s on them, ensuring timely refreshes • Executing a plan based on optimal use

15. How to work with IBM Global Financing Visit our Web site: http://www-03.ibm.com/financing/us/ Locate an IBM Global Financing representativehttps://www-03.ibm.com/financing/us/contact/