Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. Ingram Micro | Professional Services Ingram Micro IT Asset Disposition Secure, cost-effective, & environmentally responsible services to protect your assets John Redman Manager of Professional Services Operations September 13, 2013

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 2 Agenda ■ ■ Introduction to IM Link ■ ■ ITAD In the News ■ ■ The ITAD Landscape ■ ■ ITAD Best Practices ■ ■ Selling ITAD Services ■ ■ IM Link Resources

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 3 Professional Services – IM Link VAR  Resellers  MSP  Vendors service providers IM Reseller Partner Network  IM Vendors Partner Network  Staffing Partners IM Professional Services customers services Plan Implement Manage Support Benchmarking  Assessment  Planning  Strategy  Design Certification  Pre-Sales Tech Support Benchmarking  Installation  Configuration  Tuning  Testing  System Integration  H/W-S/W Upgrades  Application Development  S/W Customization  Migration Benchmarking  Administration  Asset Management  Systems Management  Performance Tuning  Production Control  Back-up and Archiving  Replication  Help Desk  Remote Infrastructure Management  Relocation Benchmarking  Warranty  Asset Disposition  Break-Fix  Hardware Support  Software Support  Business Recovery  Training/Certification  Recycling- Remarketing

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 4 In the news: Data breaches In 2012, the Identity Theft Resource Center (ITRC) documented 447 breaches in the United States, exposing 17,317,184 records. In the first half of 2013, there have so far been 255 incidents, exposing 6,207,297 records. In 2011, data breaches in the U.S. cost companies $ per compromised record. Companies in the computer software, IT and healthcare sectors accounted for 93 percent of the total number of identities stolen in Theft or loss was the most frequent cause, across all sectors, accounting for 34.3 percent, or approximately 18.5 million identities exposed in Through 2016, the financial impact of cybercrime will grow 10 percent per year due to the continuing discovery of new vulnerabilities. The average value of a lost laptop is $49,246 and the data breach costs represent 80 percent of the total cost of a lost laptop compared to two percent for replacing the computer. Encryption on average can reduce the cost of a lost laptop by more than $20,000. Data breaches are attracting greater public and government scrutiny California strengthened data breach notification requirements Secure and Fortify Electronic Data Act passed a House subcommittee in July 2011 Valuable Data on Devices

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 5 Data Breaches and Disposal in the News 5

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 6  Dominated by small, regional firms, undercapitalized with very little infrastructure  Recent industry consolidation  Historically, very little regulatory oversight and minimal standards and certifications still exist  Sub-contracting and Out-Sourcing remains rampant, even by the OEM’s The Current ITAD Landscape 6

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 7 Ensure your ITAD Vendor has obtained and maintains industry certifications ITAD Industry Standards 7

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 8 1.Ensure data destruction occurs onsite at your location Destroy data before shipping assets offsite Produce verification of data destruction before shipment Avoid vendors who use third party shippers 2.Employ an electronic tracking system Eliminate human error element with electronic tracking system Track each piece of equipment from pick-up to disposition Validate confirmation of the drive wipe before shipment 3.Data wiping is for trained professionals Help establish stronger procedures & controls Eliminate cost of training employees & managing ITAD process Must be bonded, insured vendors with proven track records 4.Remember overlooked devices Copiers, smart phones, fax machines, printers, scanners and USB drives can all hold sensitive information ITAD Best Practices

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 9 4.Refurbish & recycle Know what happens to your IT equipment downstream Commit to a 100% no landfill policy Refurbish & resell all viable equipment to extend lifecycle Partner with a vendor that can process e-waste in-house 5.Maximize your profit Negotiate an upfront purchase deal with a qualified vendor Avoid consignment models that result in eroded value of equipment & service fees 6.Risk reduction Do not simply reply on corporate policies/edicts “We are 100% encrypted.” “We wipe all data bearing assets ourselves.” “We use our install vendor to verify encryption or wipe the hard drives.” Do not rely on non-ITAD vendors and/or internal resources who are typically already strained More ITAD Best Practices

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 10 Profitability Potential 100 “Owned” laptops to dispose 10 ITAD MSRP (per device) $35.00 Total Sales (100 devices) $3, Partner Cost (per device) $20.50 Total Cost (100 devices) $2, Partner Profit$1, (41% GM) Other Considerations: Residual Values Civil Penalties Bad PR Damaged Customer Relationships Future Liabilities Uplift charges for onsite data sanitization

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 11 Account Qualification Questions General Inquiry  Purchase or lease new IT hardware?  How Often does IT refresh occur?  # of desktop PCs (“DT”) | # of laptop PCs (“LT) | # of tablets or smart phones  Are data bearing assets encrypted?  Is there a policy and/or process in place for asset disposal For those with an ITAD Program in Place…  Is your ITAD provider R2 or e-Steward certified? What other certifications do they possess?  Does your ITAD program produce positive or negative cash flow?  Who performs wiping of assets – internal employee or external vendor?  Does your ITAD provider purchase assets outright, or sell them on consignment over time?  What kind of historical and financial reporting is available regarding previously disposed of assets?  Does your ITAD vendor provide timely, accurate and auditable reporting, such as ROI, certificates of data destruction and physical destruction/recycling?  How does your current ITAD vendor handle IT asset recycling for older assets and assets such as CRT monitors, batteries, etc that require EPA complaint recycling? In-house or Downstream vendors?

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 12

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 13 Questions?

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 14 Ingram Micro Professional Services IM Link IM brokered solution provider network Standard hourly rates for labor services IT Staffing Services Permanent or temporary positions Flexible Staff Augmentation Solutions IT Asset Disposition Services Secure and responsible disposal Removes liability for information SCORE Professional Services Category and Vendor Specific Services SKU’d and Customizable SOW’s Ingram Micro Training Academy Classroom or Online – guaranteed to run Can be resold to end users 3rd Party Warranty Services Private label product protection Variety of Coverage Options Remote System Admin Services Save a truck roll Outsource support and development System Integration Services Compliment Cloud Services sales Customizable to end-user environments

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 15 For submitting requests through IM Link… Sales and Support Assistance… | (800) x67247 | x66686 | x66492 To become an IM Link Service Provider… | (800) ext | (800) Follow us: Ingram Micro Professional | Getting Linked Up with IM Link

Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.