Confidential – For Microsoft internal use only Microsoft Corporate Affairs EMEA Corporate Citizenship Alignment with the company’s business and strategic priorities September 4, 2006

Confidential – For Microsoft internal use only Today’s agenda The company values, mission and framework of Corporate Microsoft Links to the European policy context on Corporate Responsibility (CSR) Alignment with our core business and strategic priorities Focus on IT skills training and the Employability Alliance The Digital Literacy Curriculum

Confidential – For Microsoft internal use only “It takes more than great products to make a great company” Bill Gates Chairman of the Board and Chief Software Architect

Confidential – For Microsoft internal use only Microsoft’s Citizenship Commitments Demonstrate that Microsoft is a values-drive company, motivated by its mission to help people and businesses realize their potential Address the challenges created by our technology and its impact on society, and ensure the benefits of that technology are more broadly available Continue to make our business practices more open and transparent Increase internal awareness and develop systems for managing implementation Develop citizenship-related performance measurements

Confidential – For Microsoft internal use only Citizenship Initiative Advancing the Knowledge Economy Promoting Security and Internet Safety Demonstrating Responsible Business Practices

Confidential – For Microsoft internal use only The CSR European Policy Context “We need a fresh start to the Lisbon Agenda and a European Partnership for Jobs and Growth… corporate social responsibility (CSR) practices can play a key role in contributing to sustainable development, while enhancing Europe’s innovation potential and competitiveness.” Manuel Barroso, President, EU Commission – Launch of the European Roadmap on CSR, March 2005 The Lisbon Agenda , the Barroso Commission, Jobs and Growth “The Commission has moved towards a pro-business view on CSR over the past year. Originally the Commission's plans looked very different. The department responsible wanted to publish naming-and-shaming lists [of companies] and to create a monitoring system for the implementation of the CSR principles. I had to halt this enthusiasm for new regulations.” Günter Verheugen, Vice-President, European

Confidential – For Microsoft internal use only Lisbon Accelerators Research & Innovation SME Access to ICT ICT Skills for Employability

Confidential – For Microsoft internal use only “…All the evidence indicates that Europe faces a serious risk of a shortage of IT skills. Companies need to take action now to support long-term IT competency needs and to pay close attention to the implications of renewed competition for the best talents….”

Education correlation to National Economic Transformation

The Advanced Technology Skills Gap Less than 8.1% Gap 8.1%-14% Gap 14%+ Gap Source: IDC; Networking Skills in Europe, September

Readiness - Economic Gains from Digital Literacy The value of human capital in the information economy is greatly increased by job focused training Rapidly changing technology is both an opportunity and a threat Age of the population is changing and many productive members of society are being left “digitally illiterate”

Portugal An MOU was signed with the Portuguese Government for Collaboration on the Technology Plan. Community investment to re- train 10% of unemployed women formerly working in the textile sector. Partnership with CITEVE Adopting MS Digital Literacy curriculum as the Official IT curriculum in the training of adults or young people already outside the education system. Aim is to train 1 million people by 2010

Confidential – For Microsoft internal use only Employability Strategy Plan Employability is about giving people access to the IT and other skills, training, certification and other support they need to access or to retain a job. It is a partnership effort of many players.

The Skills for Employability Alliance

Working in partnership, the members of the European Alliance on Skills for Employability aim to provide access to technology and help train 20 million people in information communication technology and other skill- sets required by current and future employers. Focus is on: - older workers in need for re-training - people with disabilities - young unemployed Founding members: - Microsoft, Cisco - CompTIA, eSCC (Secretariat) - ECDL, EXIN, FIT - Randstad - State Street Corporation The Employability Alliance

New forms of partnerships help delivering on social change

Partnerships across the value chain Access to technology technology Donation of Software and NetworkingEquipment & easier access to computers Microsoft/ Cisco NGO Donations Access to certification Job mentoring & placement Link with demand In the workplace, Job mentoring & Support to placement Randstad CSR Code Targeting NGOs education inst. Microsoft Authorized Refurbisher Program Low or no fee Access to Certification, Test centers, certificate of completion ECDL Foundation CompTIA Certification EXIN Public Employment Services IT Skills Training Grants for NGOs & provision of Online Content Microsoft UP, State Street training grants Microsoft IT Academies Cisco Networking Academies UP Curriculum IT Essential 1 Digital Literacy Training & content access Digital Literacy Employee Volunteering State Street

Where do we start? How do we train to assure relevance to emerging industries and growth? How do you demonstrate the quality of your workforce across international borders? How do you show the value of your workforce to potential investors?

Digital Literacy Curriculum Provides a baseline digital literacy skills standard, supported by:  Assessment  eLearning  Certificate of completion Curriculum covers a broad range of critical ICT literacy skills The curriculum and assessments are being made available online for free, and may be provided on CD in Microsoft Word format (of limited or no internet access) Curriculum may be adapted locally to specific situational needs or programs

Microsoft Digital Literacy Program Concept A Two part “Toolkit”:  Free, online, e- learning: curriculum for digital literacy training in a self study or classroom environment  Certificate: digital literacy certificate of completion of the program

Digital Literacy Course Content Computer Literacy Internet/Web Basics Applications Basics Security & Privacy Digital Lifestyle Parts of PCs Types of PCs I/O devices Memory Storage SW types OS Windows Start menu File mgt Basic functions Word Processing Spreadsheets Presentations Each topic covers: Launch Open file Basic functions Print Close Browser basics Search Engines Internet Search Strategies Chat rooms Video conferencing Internet Online Safety & Privacy Creating Web Pages Internet Lifestyle PC Security Passwords Practices Internet Security Hackers, Viruses Online Cons Privacy Junk mail, Spam Free Internet Privacy Encryption Safe practices Course Online Assessment Course Online Assessment Course Online Assessment Course Online Assessment Course Online Assessment Certificate Digital Media Photography Video Music Digital Devices Mobile phones PDAs Wireless computing Tablet PCs Wearable devices

Summary CSR is most effective when aligned to the company’s core business priorities Public-private investment and partnerships are essential Solutions must have the ability to scale Microsoft is committed to working with you and other partners to enable long lasting change.