IBM Global Financing IBM Asset Recovery Solutions “The Future is Green with IBM” ibm.com/partnerworld 4/3/2019

The Future is Green with IBM Growth. Increase sales by solving a key business challenge. Revenue. Close more deals with IBM Asset Recovery Solutions. Earnings. Achieve greater profit margins – speed up your clients’ purchase cycle. Environmentally Compliant. All disposed systems are handled with our premier process. New Opportunity. Access new clients by offering a total solution they can afford. ibm.com/partnerworld/financing 4/3/2019

What’s happening with IT disposal? What do customers want? e-Waste is the topic of the times 93M assets being removed WW in 2006 36M in Americas alone growing 8% last year Customers looking for a comprehensive solution for asset management from acquisition through disposition Environmental and data security laws proliferating and varying by geography and region What do customers want? (IGF research study) Minimize data security exposures and environmental risk and costs Maximize asset value What do customers need in a disposal vendor (according to Gartner and other industry analysts): Financial strength, Environmental leadership, Operational excellence ibm.com/partnerworld/financing 4/3/2019

Asset Recovery Solutions – Customer Priorities #1 Minimize Data Disposal Risks #2 Minimize Environmental Risks ARS provides: Best practices in asset recovery & disposal processes ISO 9001 / 14001 certified environment A well established environmental management system Compliance with applicable environmental regulations Certificates of destruction when scrapped ARS provides: 3x overwrite to DoD standards Higher levels of overwrite (7x) if required Certificates of Disk Overwrite #3 Minimize Disposal Costs #4 Maximize Asset Value ARS provides: Flexible options to support unique customer needs & fast system disposal Leverages IBM's large scale remarketing capabilities to access a robust breadth of sales channels Utilizes existing scrap capabilities to drive down costs ARS provides: Optimized buyback values through an extensive, global trading network Well-developed routes-to-market connected by a robust e-business backbone Leverages more than 20 years of experience reselling end of lease assets Customer Priorities – 1 through 4 and how ARS addresses ibm.com/partnerworld/financing 4/3/2019

IBM Asset Recovery Solutions Offerings Three core disposition offerings to respond to customer requirements Buyback Upfront negotiated pricing for assets in inventory IGF holds risk of asset value at time of resale Customer knows upfront what value they will receive for returned assets Disposal Negotiated pricing for non-marketable assets in inventory IGF disposes of non-marketable assets in compliance with applicable environmental laws and regulations Security Data disposal – disk overwrite Compliant with US DoD standards Helps provide customers a safe and effective way to dispose of their data Additional Services Packing & transportation: dock packing and dock to dock transportation for assets “To optimize TCO benefits, companies require a corporate standard disposition strategy” ~ Gartner Group ibm.com/partnerworld/financing 4/3/2019

IBM Express Asset Recovery Services IBM Express is a suite of services and offerings for mid-sized clients’ end-of-life products including: Buyback services Disposal services Disk overwrite services Packaging & transportation Express characteristics Easy web access for pricing of assets with value and to facilitate disposal of assets Scaleable from 1 - 250 assets, available for single or multiple shipments Compliant with applicable environmental laws and regulations Enhancing IT security, dependability and compliance Customer Value Secure and environmentally compliant means to dispose of unwanted IT assets Single trusted and experienced partner to take responsibility for asset disposal Business Partner Value Increased sales - Facilitates the movement of older IT assets and freeing up critical resources for new assets 3% lead referral fee - For any leads that close in an IBM Asset Recovery Solutions contract Influence purchase of new equipment as well as new leases; key service for competitive win back by offering to buy out competitive install and replace with new IBM. ibm.com/financing/partner/us/recovery/referralfee.html ibm.com/partnerworld/financing 4/3/2019

3% Reseller Referral fee We pay a 3% Lead Referral Fee to Business Partners for customer leads that close in an ARS contract. http://www.ibm.com/financing/partner/us/recovery/referralfee.html ibm.com/partnerworld/financing 4/3/2019

Benefits to Resellers Increases offerings and total solutions available for resellers to offer Provides a way to speed up the purchase cycle for end user customers by removing disposal issues Ties customers more closely to resellers for their total life cycle solutions from purchase to disposal Provides additional income / profit potential for additional services Helps accommodate global customers with a single point of contact Helps resellers get rid of their own excess and used equipment ibm.com/partnerworld/financing 4/3/2019

ibm.com/financing/partner/us/recovery For more information ibm.com/financing/partner/us/recovery Guess which one won't increase in value Your old PCs aren't like a fine wine or a vintage car. Their value will never go up, and will eventually dwindle to zero. For example, look at what's happened to resale prices on these three-year-old systems in just nine months: System Description May 2006 Jan 2007 Dell Notebook P2000 $323 $213 (-34%) IBM Thinkpad P1000 $176 $150 (-15%) Compaq Desktop P1.13 $ 35 $ 17 (-51%) ibm.com/partnerworld/financing 4/3/2019