1. 4 Weeks of Surface Week 2 Microsoft Surface Tina Flammer - Surface Product Marketing Sibel McHarg – Partner Sales Executive Katrina White – Surface Product Marketing

2. 2 AGENDA  Sales Accelerators & Product Offers – Tina Flammer  Pricing Programs & Demo Program – Sibel McHarg  Warranty & Support – Program & Process

3. FY16 Sales Programs Sales Accelerators & Product Offers Tina Flammer

4. 4 Commercial Discounts & Offers DEAL BASED INCENTIVES Bid Grid Deal Registration Bid Grid Special Pricing (high volume) EVERGREEN PROGRAMS EDU Bundle discount Trade In Program Demo Device Program SHORT TERM OFFERS Reseller Launch Offer Surface 3 EDU Bundle Extra Discount (Feb/Mar) Surface 3 Discount (Feb/Mar)

5. 5 Reseller Launch Acceleration Program Program T’s & C’s  Offer valid Feb 1 – March 31; Orders to Disti must be in between Feb 1 – March 31 and ship out from Disti by EOD 31 March  Eligible Order size > 50 units and > 150 units of any Surface device; requires POE (invoice to end customer)  Incentives requires 100% Type Cover attach on purchased units  Pricing: Deal Registration available on all orders, Units eligible to current offers in market  Resellers must report back the sales of the individual Microsoft SKUs Disti by 4 April to qualify for the devices FEBRUARY & MARCH LAUNCH INCENTIVE TO NEW RESELLERS Sell 50 units* or more to receive 1 Surface Pro 4 i5 128gb & 1 Surface 3 Sell 100 units* or more and purchase up to 5 Surface Demo units at 50% Sell 150 units* or more to receive 1 Surface Book i5 8GB/256GB RZ * Program offer requires 100% attach with Type Cover on all Surface Pro 4 orders

6. 6 Surface 3 Offers Surface 3 EDU Bundle Additional Discount- Save more than 20% off MSRP (ex GST) - through 31 March Surface 3 Additional Discount through 30 June

7. 7 EDU Bundle Program

8. 8 Business Device Trade-In Program Request quote from your sales rep Ship devices using pre-paid shipping labels and online account provided Receive confirmation and trade-in value Remove all data and refurbish or recycle old devices Accept quote within 30 days of receipt Receive a check or credit on your new Surface purchase invoice HOW IT WORKS – VIA CLOVER UPGRADE TO SURFACE FOR LESS A device trade-in program is an essential component of every global partner’s asset recovery plan A trade-in program is an important part of every sales call. Organizational need to recycle devices in an environmentally-friendly manner & ensure Critical need for complete removal of sensitive data during recycling IMPLEMENT WITH EASE Automated quotes online or via quote sheet Fully managed process, pre-paid shipping labels, and detailed reporting Guaranteed trade-in price for 30 days from date of request Free shipping for devices

9. 9 Trade-In Program Assets

10. Pricing Programs Sibel McHarg Surface Distribution Sales Executive

11. Surface Hero Sales Model Device Keyboard Docking Station Value of Cross Sell, Upsell Increased Revenue + Margins Increased Incentives Improved Customer Relationships Additional Margin Opportunity Mice Dongles & Extra Pens Extra Power Supplies Warranty Benefits

12. 12 Device Pricing Programs Overview BID GRID DEAL REGISTRATION SPECIAL PRICING Automatic Tiered volume discount to empower Distributors 5-499 units Discount to reward and incent one Reseller per opportunity 50+ units=Surface Volume discount designed to help win big deals 500+ units=Surface Upfront Discount

13. 13 Pricing Structure  From 9% to 24% depending on product  Additional discount on volume - starts from 5 units – 499 units  Request price directly from Distributor (via BID GRID)  To reward and protect investment of resources and time spent to develop Surface wins  Allows DMP to lock in opportunity at an early stage and own it during the entire sales cycle  Additional 3% discount available through new Deal Registration tool  Minimum 50 unit orders  Additional access to customer specific demos at 50% off  Disti’s to send a template  Deal based volume discount program with ADDs to provide incremental discount points from Microsoft  Automatic Tiered volume discount to empower Distributors  5-499 units  For large volume deals > 500 units  To enable incremental discounts to close larger opportunities  Request directly with Microsoft WWLP All discounts are STACKABLE!

14. Demo Device Program Sibel McHarg Surface Distribution Sales Executive

15. 15 3 Ways to get Surface Demo units *limited # of devices & accessories at a 50% discount  Eligible to purchase up to 50 total Surface units of each Surface device  50 each of Surface 3, Surface Pro 4 & Book  And eligible accessories  To sell, loan and seed to DMPs  Approval from Partner Surface Partner Exec required  Disti’s to send a template  Deal Reg Demo units – based on volume of customer orders in Deal Reg @ 50% off  DMPs must have deal registration approved for the customer to qualify  Must be a Minimum 50 unit orders in next 6 months with at least 1 unit shipping within 90 days  Number of units they can sell to customer contingent upon deal size (up to 10 units)  Microsoft has some seeding units  Priority is given to large opportunities  Please contact your Surface Partner Sales Exec to request with business case  Preferable to exhaust options 1 & 2 first please * Eligible demo units. See current price list. Pricelists and available demo units may vary monthly. Products that are listed on the pricelists as demo SKUs are not eligible for 50% discount

16. Katrina White Surface Product Manager

17. 17 Agenda Warranty Offers Purchase & Registration Process Claims Process Warranty Scenarios Technical Support Offers Premier Technical Resolution Support Premier Proactive Services Frequently Asked Questions

18. Standard Warranty Surface 3 Surface Covers Wired & Wireless Adapters Mice Charging Accessories Pen and Loop Docking Stations All devices, covers and accessories come with a standard warranty Length of standard warranty varies by country depending upon local requirements* In and out of box covers and accessories have their own warranty and are not covered by the Surface device warranty terms and conditions Accessories Devices Surface Pro 4

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21. 21 Additional Warranty Services Extended Hardware Service Extends length of coverage to 3 years Can purchase up to 45 days from device purchase Advanced Exchange timeline 3-5 days (varies by country) – counting from when exchange order is created by Customer Support (CSS) Includes 90 day one-on-one setup support from a Microsoft technical expert Includes advanced exchange (in select markets) Incudes transferrable extended warranty In Store exchange available in US and CA and AU Microsoft Complete for Business Includes all the features of the Extended Hardware Service and: Extended setup support for 3 or 4 years Coverage for accidental drops or spills - Limit 2 claims per warranty period; no deductible

22. 22 StandardExtended Hardware Service PlanMicrosoft Complete for Business Plan Basics Warranty coverage IncludedWith purchase Plan length Varies by country (1-2 years) 3 years3 or 4 years Activation Activated from day device is received by customer Can add up to 45 days from date of purchase Can add up to 45 days from date of purchase Exchange timeline (business days) 5-8 (varies by country)3-5 (varies by country) Hardware Service Manufacturing defects for your Surface device including bundled power supply and battery Accidental Damage Protection Coverage for drops, spills, power surges, etc. Support for your Business Surface set-up support 90 days 3 or 4 years Prepaid shipping Advanced Exchange Microsoft Store Exchange (select countries only*) Transferrable extended warranty Commercial Warranty Plans Comparison

23. 23 Websites for you & your customers  Microsoft Support for Business https://www.microsoft.com/surface/en-au/support/business https://www.microsoft.com/surface/en-au/support/business  Surface Warranty Documents https://www.microsoft.com/surface/en-us/support/documents https://www.microsoft.com/surface/en-us/support/documents  Surface Standard Warranty Overview https://www.microsoft.com/surface/en-au/support/warranty-service-and- recovery/surface-warranty https://www.microsoft.com/surface/en-au/support/warranty-service-and- recovery/surface-warranty  Surface Warranty Frequently Asked Questions https://www.microsoft.com/surface/en-au/support/warranty-service-and- recovery/microsoft-surface-warranty-faq https://www.microsoft.com/surface/en-au/support/warranty-service-and- recovery/microsoft-surface-warranty-faq

24. 24 Microsoft Surface Warranty  Scenarios not covered by Microsoft warranty*  Normal wear and tear unless expressly covered by an extended warranty or under law.  Unless expressly covered by an extended warranty or law, accidental damage from handling (ADH), such as damage from drops, spills, and liquid damage associated with the handling and use of the product  Includes cracked screens, reasonable physical damage to unit housing and any liquid induced damage  Does not cover units that have been knowingly tampered by the user (opening of the device housing)  Microsoft will provide guidance related to tampering and customer induced damage via a website designated by Microsoft.  For details, refer to the manufacturer’s warranty document (region specific) which can be downloaded from www.microsoft.com/surface/warranty www.microsoft.com/surface/warranty

25. 25 Out of Warranty  Out of Warranty (OOW) process  Reseller / customer logs call under OoW conditions (ph 13 20 58, option 2, option 7).  MS agrees to replace unit under OOW conditions with relevant charge levied against customer or reseller.  Customer / Reseller accepts notice of the charge and agrees to pay MS.  If via reseller, reseller passes charges through to customer and any additional margin they place on this.  Standard exchange conditions apply, customer sends faulty unit back, MS sends out new unit.  MS charge reseller / customer ex GST.  OOW pricelist to be communicated in coming weeks

26. Warranty Purchase & Registration

27. ADD: Submits order for EHS plan. Microsoft: Sends email to ADD sharing a unique Token ID # ADD: Forwards email to ADR ADR: Forwards email to End-Customer End-Customer: Uses the Token ID # to self-register New self- registry Portal Token Redemption Process Steps An ADR may register devices on behalf of their End-Customers if they choose. An ADR may wish to offer this service to the End-Customer.

28. Token Redemption Process Flow NOTE: An ADR may register devices on behalf of their End-Customers if they choose. An ADR may wish to offer this service to the End-Customer.

29. The End-Customer will:  log into a purpose built Registration Portal using their Microsoft Account details.  URL Hyperlink –https://mybusinessservice.surface.comhttps://mybusinessservice.surface.com  They will then use their Token ID# in order to register their EHS plans to their Devices. The following slides are included for your reference to provide you with insight into what Self-Registration will look like for the End-Customer in terms of: 1)Redeeming EHS Token 2)Checking EHS Token Status 3)Checking the Warranty End-Customer Experience

30. Sample EHS Token Email: End-Customer Experience

31. Self-Registration: Redeeming EHS Token 1. Customer Clicks on “Redeem Extended Service Plan” 2. Customer Enters Token ID # 3. Enters Registration Information, Pastes serial numbers and Clicks “Submit” Note: Register to the Entity not end user

32. Self-Registration: Checking EHS Token Status 1. Customer Clicks on “Check Status” tile 2. Customer Enters Token ID # 3. Customer can check the Status of each Device

33. Self-Registration: Checking Warranty of Devices 1. Customer Clicks “Check Warranty” 2. Customer Enters Serial Number 3. Customer can now check if this device is covered by an Extended Hardware Service Plan

34. 34 Warranty Registration Portal

35. Technical Support & Warranty Process

36. High Level Customer Support Process Customer initiates claim Professional Claims Process Warranty related? Customer Surface Support – 132 058 Option 2; Option 7

37. 37 Options for 24 Hour Device Replacement SLA Customers can currently get a replacement unit with Extended Warranty/Microsoft Complete for Business within 5-7 business days* Customers have three potential options for getting a faster SLA on replacement: Option 1 Customer Purchase additional devices and maintain an in-house swap pool. Dependent on volume and usage at customer Guideline = Approximately 1% of units in usage Option 2 ADR manages swap pool and provides 24hr SLA as a value added service. ADR will keep additional devices in a swap pool ADR may charge additional cost for providing this value added service Option 3 Customer exchanges device at a Microsoft Store Option available in the Sydney only Inventory not guaranteed Available regardless of purchase channel

38. 38 How do I Protect My Data? Encrypt your hard drive with BitLocker Identity and Data Protection  Surface uses Windows Defender to protect against malware and viruses. BitLocker technology, TPM, UEFI, and Secure Boot help keep your Surface Pro safe and secure. The TPM can also host virtual smart cards, a strong authentication technology that enables users to authenticate with asymmetric keys rather than guessable passwords. Microsoft Data Wipe Policy  Surface currently DOES NOT have removable storage media.  Microsoft Service Centers currently DO NOT have physical destruction capabilities  Microsoft Service Centers conduct a data wipe as standard practice  Data wiping practices at service centers meet or exceed DOD (US Department of Defense) 5220.22-M and Draft NIST Special Publication 800-88 Revision 1 to endeavor that there is no PII or Corporate Data left on the device  Comprehensive guidelines are available: How to Prepare Surface for ServiceHow to Prepare Surface for Service

39. Appendix

40. Multi-country Warranty and Exchange Scenarios Scenario 1: The customer purchases Surface devices in the UK and ships the devices to Germany (both are Surface launch countries) Warranty Terms: The terms and conditions of warranty policies are specific to the country where the device is purchased. In this case the standard warranty coverage lasts for 1 year per the UK policy. Exchange Terms: If still under warranty, Microsoft can replace the defective device, type cover or accessory in Germany (where customer resides). All replacement units will be form the SKUs available in Germany. Note: All replacement devices are shipped directly from the distributor and do not come with any value added service that the ADR provided. Business customers (including Premier) will need to work with their ADR to re-add value added services. Scenario 2: The customer purchases Surface devices in Germany and ships the devices to Poland where Surface is not currently sold. Warranty Terms: The terms and conditions of warranty policies are specific to the country where the device is purchased. In this case the standard warranty coverage lasts for 2 year per the policy for Germany. Exchange Terms: If still under warranty, Microsoft can replace the defective device, type cover or accessory in Poland (where customer resides). All replacement units will be from the UK SKU (as Poland does not have any SKUs) but shipped to the customer location (ie Poland) Note: Since Poland is an EU member and by law Microsoft must provide support for customers in all European Union (EU) countries. However, only a standardexchange process will be followed.

41. Multi-country Warranty and Exchange Scenarios Scenario 3: The customer purchases Surface devices in the US and ships the devices to a non- launch country in LATAM or APAC Warranty Terms: The terms and conditions of warranty policies are specific to the country where the device is purchased. In this case the standard warranty coverage lasts for 1 year per the US policy. Exchange Terms: If still under warranty, Microsoft can replace the defective device, type cover or accessory and ship to the nearest launch country ONLY. Microsoft CANNOT ship directly to customer in the destination country. All replacement units will be from the SKUs available in nearest launch country. Note: A standard exchange process will be followed and customer will have to ship the defective device or type cover to the nearest return depot at their own cost. Scenario 4: The customer is a MNC and purchases Surface devices in multiple countries. Warranty Terms: The terms and conditions of warranty policies are specific to each country where the device is purchased. The standard warranty coverage lasts for 1-2 year depending on country. Exchange Terms: If still under warranty, Microsoft can replace the defective device, type cover or accessory in the country (where customer resides). Depending on the country, one of the three scenarios (1-3) will apply Note: A uniform warranty policy cannot be applied across all countries due to compliance requirements with local laws

42. 42 Out of Warranty Determination  A customer returns a device under warranty, but after evaluation the device is deemed out of warranty (OOW). Criteria for making this determination includes (but is not limited to): Cracked or scratched touchscreen Significant cosmetic damage including scratches, dents, etc. Kickstand hinge damage Evidence of unauthorized service or attempted disassembly Tamper label removed, altered or otherwise disturbed Modifications to internal components Serial number removed, mismatched, altered or otherwise unreadable

43. 43 Technical ScenariosNo fee Fee (decrement contract hours or Pay Per Incident) Errors or issues during Out Of Box Experience (OOBE) – Device Setup and Configuration Customer experiencing a blue screen on a OOBE device that is custom imaged Customer experiences blue screen or other errors after the device has already been successfully used in production Errors or issues with setup or using Pen for first time. Customer experiencing problems trying to set up pen on a new device for the first time N/A Errors or issues related to wireless networking Customer experiencing problems trying to connect a new device to a wireless network, if other devices are already functioning properly on the wireless network Customer experiencing problems trying to connect a new device to a wireless network, if other devices are NOT already functioning properly on the wireless network Errors or issues related to activating Surface Customer experiencing problems trying to active Windows on a device N/A Errors or issues related Device Imaging and Deployment Customer needs guidance on best practices on how to image their device 1. Customer needs help preparing an image 2. Customer encounters a problem during the imaging process or after the application of the image Please note these are examples only and not inclusive of all possible issues When am I charged for support?

44. © 2015 Microsoft The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. Microsoft makes no warranties, express, implied or statutory, as to the information in this presentation.

45. Frequently Asked Questions Normal cosmetic wear however does not void the warranty Customer induced damage, tamper, unauthorized repair and cracked screens. Voids product warranty in case of internal failure Severe physical damage and liquid damage Yes. The device can be shipped to countries where Microsoft has launched Surface. Type of device shipped will be based on ship to country. Yes. All Surface in-box and stand-alone accessories covered by a one year standard warranty except the Wedge Mouse which is covered up to three years. Type/Touch/Power covers also have a one-year standard warranty No. Out of Warranty issues are directly billed. No. The Hardware Customer Service Agent is able to determine if you are a Premier customer when you are entitled for support using your Access ID. No. However, if you do plan to use a partner, depot service or have your Help Desk manage warranty requests, talk with your TAM about best practices. You check your warranty at https://myservice.surface.com by clicking on “Check Warranty” and entering a device serial number. https://myservice.surface.com Note: Please do not register devices using this portal Microsoft Service Centers perform a DOD (US department of defense) level of data wipe on the device, ensuring that there’s no PII corporate data left on the device. Not at this time. You will receive a new or refurbished replacement device. No. Same unit repairs are not done at this time.