© 2007 IBM Corporation IBM Global Financing February 2007 An Introduction to IBM Global Financing for Software and Services

IBM Global Financing An introduction to IBM Global Financing © 2007 IBM Corporation 2 “765 CEOs across the globe cited limited funding for investment as their second most significant obstacle to innovation.” — 2006 IBM CEO Study The importance of IT financing is increasing “ ” Financing can expedite business transformations One of today’s greatest information technology challenges isn’t technological — it’s financial. » A major challenge confronting decision makers is making wise choices when it comes to paying for the technical assets essential to business operations. The growth of today’s overall technology marketplace is being driven by faster product cycles, faster depreciation schedules and a focus on integration and infrastructure.

IBM Global Financing An introduction to IBM Global Financing © 2007 IBM Corporation 3 Agenda » How financing can help you » About IBM Global Financing » What does IBM offer? » Financing examples » A solution for you » Next steps

IBM Global Financing An introduction to IBM Global Financing © 2007 IBM Corporation 4 Financing helps you achieve your complete solution today so your business can start realizing the full benefits right away How can financing help you? Simple budgeting with predictable payments is key Which of these important reasons is why you finance software or services? % of respondents Enables predictable-cost ease of budgeting71% Manages total cost of ownership66% Enables single invoicing of hardware, software and services64% Preserves cash flow for higher yields58% Reduces cost with low interest rates58% Matches accounting with cash flow54% Accelerates implementation of key projects50% Source: IGF Customer I/T Financing Study Large & Midmarket Customer Set (RONIN), May 2002

IBM Global Financing An introduction to IBM Global Financing © 2007 IBM Corporation 5 About IBM Global Financing A trusted partner with competitive rates Experts in financing technology and solutions » Unlike banks, we focus primarily on solution and technology financing » We provide single-source financing that helps you 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 the investment The world’s largest provider of technology financing » Serves more than 125,000 clients in over 50 countries » IBM has nearly twice the 2006 IT financing volume as the nearest competitor

IBM Global Financing An introduction to IBM Global Financing © 2007 IBM Corporation 6 IBM offers financing for your entire solution, including software, maintenance renewals, services and hardware… for both IBM and non-IBM solutions Large Projects Flexible solutions customized to the specific needs of more complex projects: » Various financing structures that optimize cash flow, for example:  Flat monthly or quarterly payments  Step payments  Balloon payments  Deferrals » Customized terms and conditions » IBM Global Financing contacts available to help create optimal solution Small Projects IBM Financing Advantage ― Complete offerings designed for smaller projects: » Streamlined financing for as little as $1,000 » Terms as long as 60 months » Up to $500,000 in financing without your clients’ financial statements » Simple, two-page contract » Hardware is not required on financing transaction » Contracts can be generated in under an hour with our Rapid Online Financing tool IBM now offers financing on standalone software and services solutions ― no hardware required! Best of all, below-market* rates are available on IBM software and hardware financing * Subject to client’s credit score and transaction size limits. May not be available in all areas.

IBM Global Financing An introduction to IBM Global Financing © 2007 IBM Corporation 7 Time IBM Global Financing for your Software and Services Project Match payment timing and structure with anticipated benefits $ Cost of the project Benefits of using your new solution (ROI) Financed payments » Costs are heaviest at the front end of the project, while benefits do not fully accrue until the project is implemented » When the project is financed, replacing up-front costs with payments over time, costs and benefits track much more closely

IBM Global Financing An introduction to IBM Global Financing © 2007 IBM Corporation 8 Example – software and services financing Terms are available from 12 – 60 months. Monthly payments are estimates based on lease rates for installations of qualified products and services in the United States. Actual rates may vary based on client creditworthiness, configuration details, etc. and are subject to credit approval by IBM Credit LLC. For some clients, total software and services is limited to 75% of hardware financed. Other conditions may apply. This example is valid in the US only. US$90,000 solution comprised of: » $30,000 of new IBM software licenses » $10,000 of IBM Software Maintenance Renewals » $50,000 of consulting/ implementation services Monthly payments make your solution much more affordable, freeing up your budget for other activities : » Only $2,753/month for 36 months Or » Only $3,955/month for 24 months Get financing rates as low as 5.10% for IBM software and 4.80% for IBM hardware

IBM Global Financing An introduction to IBM Global Financing © 2007 IBM Corporation 9 Client-specific payment structure better aligns with ROI expectations Example: Starting first year: $400K of IBM Software plus $250K of non-IBM Software and Services financed Starting second year: Additional $250K of non-IBM Software and Services financed Total amount financed: $900K, ending all payments after 36 months 6-month deferral—no payments due for 6 months 30 months of payments for first $650K, $24,485 per payment 24 months of payments for additional $250K, $11,365 per payment Total Monthly Payments First Year Months 1-6: no payments Months 7-12: $24,485 per month Second and Third Years $35,850 per month ($24,485 + $11,365 = $35,850) Customer Payments per Month 6-month Deferral Time (months) $400K of IBM Software $250K of non-IBM Software and Services 30 months, $24,485 per payment $250K of non-IBM Software and Services 24 months, $11,365 per payment

IBM Global Financing An introduction to IBM Global Financing © 2007 IBM Corporation 10 A solution for you Seller, please customize and add your solution for the client here. » Placeholder copy

IBM Global Financing An introduction to IBM Global Financing © 2007 IBM Corporation 11 Next steps  I see the value in financing, let’s finalize the agreement.  I believe that you have a solution that will positively impact my company. Let’s discuss next steps.  I need to do more research, where can I find more info about my options.  I still have some questions before making a decision. Let’s discuss them now.