1. Presented by Dorothy Ward, Vendor/Alliances Manager IBM Global Financing – Americas Education module

2. 1 IBM Global Financing What is financing 2 Competitive comparison 4 Benefits to your client and to you 3 The so-called “0% lease” 5 What to offer 6 Where to learn more 6 Agenda

3. to provide financing for clients Partner with IBM Global Financing World’s largest, most experienced IT financier  $34 billion in assets managed across 50 countries  125,000 clients –Small businesses to the world’s largest organizations –Across all industries  25 years’ experience Lease/loans  For hardware, software, services  From $1,000 to…  Acquired through any authorized sales channel –Seller sets their price; IBM Global Financing pays it up front and collects from the client over time

4. Lease pay to use equipment the financier owns Loan pay back money the financier provided Money loaned may be used to pay software license, charges for services, purchase equipment the client would own, etc. Payments reflect...fully paying out the original cost paying part of the original cost, not the residual (future resale) value End of lease options Client may purchase at end of lease for... bargain price (e.g., $1)then-current fair market value Good for clients who anticipate... keeping the equipmentupgrading or replacing equipment purchase, send equipment to financier, continue payments or renew (refinance) Fair Market ValueFull Payout lowest payment “Financing” is leasing and loans

5. Source: Equipment Leasing Association State Of The Industry Survey Ease, Convenience, Flexibility 13% Simplify budgeting and approvals  Predictable payments vs. “spikes” of purchase  Easier approval when paid from operating versus capital budget  Flexibility to return/upgrade/replace Latest Technology 9% Maintenance, Options, Cost 13% Dollar Value 17% Latest technology at lowest cost, risk  $1 budget buys $3 equipment on lease  Vehicle to refresh technology in future  Client has no resale value risk or disposal responsibility Tax Benefits 13% Tax benefits  Faster tax write-off than if purchased  Deduct entire lease payment immediately vs. only the interest portion of loan payment Minimize cash flow impact  Preserves cash and credit lines for other needs, opportunities  More affordable than outright purchase Cash Flow 35% Benefits of financing to your client

6.  More sales, larger sales up front  Upgrade/replacement sales sooner  Closer client relationships and loyalty  “Pay as used” is an easier sell  You are seen as a business solution, not just a technology provider  Higher profits –Addresses affordability without discounting –Helps focus on the business solution rather than piece-part purchase price  Improved Channel Partner health –Partner enjoys all benefits listed above –IBM Global Financing pays the Partner’s invoice… faster than their client would –IBM Global Financing assumes the client’s credit risk Benefits to YOU IBM study: For every $1 leased, clients bought as much as $5 more over the next 2 years.

7. Competitive comparison Compelling rates  Ample access to low-cost funds  High residual values, due to asset recovery expertise Unmatched asset recovery services  40,000 processed used/idle items each week IT financing specialists, proven success  25 years in IT financing, 50 countries, 125,000 clients  Twice the size of our nearest IT financing competitor Variety of products, services  From simple lease for 1 item…to complex financial packaging  From seasonal rental…to multi-year lease  From acquire…to ‘retire’ (resale or safe, secure disposal) Total solution financing  Hardware, software, services...and more

8. 0% lease rate* Keep your solution up-to-date with a special 0% lease rate! Spread the cost over terms of 24, 36, 48 or 60 months and then simply send them back to us, making room for the newest technology. It’s easy to determine your monthly payment: just divide your total equipment cost by the number of months in your lease term! * Implicit lease rate, assuming lessee does not exercise a fair market value purchase option at the end of the lease term and timely returns the leased equipment to xxxxx Financial Services at the end of the lease term Client pays the full cost of the equipment over time, e.g., $100K / 24 months or $4,167 per month But then does NOT own it ! Client must pay MORE (fair market value) to own it Typical 24 month FMV payment with IBM Global Financing? About $3800 per month...“less than 0%” The so-called “0% lease” explained…

9.  Simple, short contract  Streamlined handling  Instant payment estimate at ibm.com/financing Click “Calculators”  1-hour turnaround Fast, simple financing for smaller opportunities IBM Financing Advantage The easy way to get what you need (and get rid of what you don’t)

10.  Flexible billing including: –Payment deferrals or “rent holidays” –Seasonal/other tailored payment streams –Quarterly “sweeps” (aggregate multiple buys from multiple suppliers into one lease)...and more  Complete IT “financial outsourcing” for clients over many years to fund their IT strategy  Tools for clients to track assets, leases  Buyback and disposal services –Unique solutions for large quantities, various equipment types, multiple locations Customized financial solutions for large opportunities Engage your IBM Global Financing rep EARLY in the sell cycle

11. About 3% of the purchase price, per month e.g., Finance $100,000 for $3,000 per month When the client first says “Sounds good – about how much does it cost?” …lead with financing! This is very rough, conservative, “ballpark” pricing for a 3-year term  2-year term will be higher, 5-year term lower  Loans cost more than leases  Full payout leases cost more than fair market value leases  Equipment types, customer creditworthiness, etc. all affect price

12. More information Sales Tools portal  Sales collateral  Contacts …and more!