1. Steve Kerr Business Development Manager SMS&P

2. Agenda Microsoft Financing Update; Global & Local Product Definition Customer Benefits – why customers buy Partner Benefits – why use Microsoft Financing How to Quote & Sell Microsoft Financing Submitting & Processing Deals Resources & References Questions?

3. Global Update FY06 record year for MS Financing –Total volume >US$410m –Up 115% on FY05 –New markets opened –Increased global team

4. Local Update Microsoft Financing launched officially in April 2006 –Some mainstream & industry press coverage –Partner briefing sessions in Syd & Melb Key Message –Aim is to provide a simple, easy & affordable financing to assist partners enable sales of Microsoft solutions. Simple: straightforward financing Easy: low doc loans, high approval rates Affordable: competitive rates, no fees

5. Local Update FY07 – first full year in Australia FY06 – Q4 –over $3.5m booked –License (software only) financing 60% total funding 25% transactions Average deal size $560,000 –Total Solution Funding 40% total funding 75% transactions Average deal size $107,000 ($15,000 - $350,000) –Main focus – awareness & integration

6. Local Update New people –Katrina Braund, SMB Sales & Program Manager joins –Steve Kerr, Business Development Manager, SMS&P –Trevor Hudson, Business Development Manager, EPG New Marketing Initiatives New Promotions Partner Product Training Get ready now!

7. Microsoft Financing – Product Definition Microsoft Financing is a financing program offered and administered by De Lage Landen (DLL) –DLL is a subsidiary of Rabobank –DLL provide back office support in 11 countries, including US, UK, Canada, Australia & NZ Microsoft policy direction –Pricing –Credit assessment –Break-even philosophy

8. Microsoft Financing – Product Definition Simple loan finance –Principal & interest loans –License financing and Total Solution Financing License Financing (software only) –Enterprise Agreements –Select L or L&SA –Open License Agreements –Software Assurance –Microsoft Dynamics Products

9. Microsoft Financing – Product Definition Total Solution Financing –Software Microsoft software ISV software Third party software –Partner Services Implementation or migration Ongoing services –Hardware Must have a Microsoft component Any combination No minimum % hardware

10. Microsoft Financing – Product Definition Terms –Minimum deal size - $15,000 –Repayment terms from 2 to 5 years –Flexible repayment structures Monthly in arrears Deferred payments Structured payments –Cater to annuity licenses or milestone implementation –Competitive rates Majority of deals between 7.5% & 8.75% (Bank Financing, secured against property @ 7.95%) No application fees or management fees

11. Microsoft Financing – Product Definition What we cannot do: –We cannot provide a “lease” on hardware –We cannot provide 0% finance (although you can!) –We cannot pay commissions on deals –We cannot offer tax &/or legal advice on the suitability of a financing program.

12. Microsoft Financing – Customer Benefits Customers can deploy solutions now & enjoy the benefits today. Customers can budget confidently over time – predictable cash flow. Competitive cost of funds Match payments with usage. No residuals or balloon payments Customers can make decisions based on requirements, not upfront cost. You wouldn’t dream of paying cash upfront for your office space. Why would you for your IT solutions?

13. Microsoft Financing – Customer Benefits Microsoft Office Professional ($55,000) Microsoft Windows® XP ($22,000) Microsoft Windows Server TM ($4,000) Microsoft Exchange Server ($8,000) Services or other Microsoft Products ($11,000)

14. Microsoft Financing – Customer Benefits Microsoft Financing can provide maximum flexibility –Payment deferrals –Variable payments Customers can increase payments as they deploy more solutions –Milestone implementations –Line of credit facilities Free up cash and other credit facilities for core business Financing may improve return on investment. Easy to apply, easy to document

15. Microsoft Financing – Partner Benefits Increased deal sizes –Financed deals are between 15% & 40% larger than non-financed deals Less reliance on discounting – focus on payments, not price Create cross sell and up-sell opportunities Shorter sales cycle –Close deals sooner ”At least half of our new client wins have been fuelled by the availability of financing” Bryan Stuart, CFO, Junction Solutions

16. Microsoft Financing – Partner Benefits Stronger Client Relationships –Become a Total Solution Provider –Develop multi-level relationships within customer management –Protect your customers Revenue recognition remains the same –Remuneration as if customer paid cash. –Invoices paid within 48 hours of receipt* * conditional upon deal approval and all required original documentation provided.

17. Microsoft Financing – Partner Benefits Define future sales opportunities –Clearly defined payment cycle –Create opportunity to discuss upgrade strategy Microsoft Financing is very competitive –Aim is to support sales of Microsoft products

18. Microsoft Financing – How to Sell Introduce early in the sales process –Change focus from upfront price to budget –Expand the scope of the project Meet & exceed customer expectations with regard to flexibility & simplicity Get MS Financing involved Provide high perceived value payment options –E.g. No-cost payment deferrals or discount / 0% interest offers

19. Microsoft Financing – Quoting Examples Standard quotes Line of Credit / Milestone Zero Cost Deferment Discount Rate or 0% Financing Taxis can be tough to get, especially when you really need one. Same with IT solutions. Current needs don’t always map to current budgets. Well, now they do. With Microsoft Financing, you’re the hero.

20. Microsoft Financing – Standard Quote Download calculator from www.microsoftfinancing.comwww.microsoftfinancing.com Online calculator Example –$200,000 –4 years –$4,915.51 ($24.58 per $,000 financed) 2 years3 years4 years5 years $45.39$31.45$24.58$20.54

25. Microsoft Financing – Milestone Implementation Request quote via Microsoft Financing Example –$100,000 on day 1 –$50,000 in 3 months –$50,000 at end of project (6 months) –5 year upgrade cycle Drawdown$100,000$50,000 Number of Payments 3 payments 54 payments Monthly Payment$2,054.06$3,124.48$4,243.18

26. Microsoft Financing – Zero Cost Repayment Deferral Request quotation via Microsoft Financing Example –$200,000 –4 year term –$4,915.51 –Customer payments beginning in 3 months, invoice payment today –Use $4,204.12 (or 2.1% discount) to offset interest, and book your deal today!

27. Microsoft Financing – Discount Interest Rate Quotation Refer to Microsoft Financing for quotation Example – 0% interest rate –$200,000 –4 years –Payments = $200,000 / 48 = $4,166.67 –Required subsidy = $30,468.57 (15.2% discount) Example – 5% interest rate –$200,000 –4 years –Payments = $4,605.86 –Required subsidy = $12,598.92 (6.3% discount)

28. Microsoft Financing – Discount Rate Table $200,000 rate subsidy reference table To be used as a guide only. Please refer to Microsoft Financing for actual quotation. Client Rate 2 years3 years4 years5 years 0% 8.2%11.7%15.2%18.9% 1% 7.2%10.3%13.5%16.8% 2% 6.3%8.9%11.7%14.7% 3% 5.3%7.5%9.9%12.5% 4% 4.3%6.1%8.1%10.3% 5% 3.3%4.7%6.3%8.1%

29. Microsoft Financing – Applications & Documentation Deals less than $500,000 Deals greater than $500,000 Milestone, Line of Credit or structured deals

30. Microsoft Financing – Less than $500,000 “One Shot” Loan Agreement –Request Director’s guarantees – private companies Waived for businesses trading more than 5 years with >$10m turnover –Direct Debit –Deals over $100,000 – audited financial statements Available to download from www.microsoftfinancing.comwww.microsoftfinancing.com Credit decision times –Less than $100,000 – 24 hours –$100,000 - $500,000 – 2 business days

32. Microsoft Financing – Greater Than $500,000 or Structured Master Loan & Guarantee Document –Individual one-page loan schedule Request Director’s guarantees 2 year’s audited financial statements DLL to prepare documentation Credit Decision –$500,000 to $1m – 3 business days –>$1,000,000 – 5 business days

33. Microsoft Financing – Variances KPI Variances –Interest Rate adjustments –Documentation changes –No financial statements –No Director’s guarantees We will work as quickly as we can to meet your clients unique requirements. Our aim is to enable sales.

34. Microsoft Financing – FY 07 Marketing – customer & partner Campaigns – to be confirmed Smarter Sales Series –Online Training Program

35. Microsoft Financing –

36. Microsoft Financing – Further Information Take Action –Apply to participate now –Visit the MS Financing Booth Marketing materials Quoting demo’s “ask the experts” –Go online www.microsoftfinancing.com Australian & New Zealand content Documentation Marketing materials Quoting Steve Kerr –v-steke@microsoft.comv-steke@microsoft.com –0448 864 168 DLL –1800 799 673 –Applications & settlements

37. Steve Kerr Business Development Manager SMS&P