1. Dell Financial Services
Payment Solutions and Capabilities Overview

2. Agenda Item one Item two Item three Item four Dell Financial Services
* Terms subject to product availability, credit approval, execution of documentation provided by and acceptable to DFS.
Dell Financial Services

3. Why customers finance
Dell Financial Services

4. Benefits of financing Ease budget constraints
Spread IT costs over several cycles
Retain cash for investing in their business
Increase operational efficiency
Add new items to the customer’s financing agreement at any time
Customize lease terms to minimize payments or co-terminate all assets
Simplify budgeting and payments
Finance the total solution with one vendor
Consolidate and customize payments
Accelerate ROI
Pay over time and match payments with benefit realization
Leverage time value of money
// KEY POINT//
Financing with DFS can help address your customer’s pain points and enable you to deliver business results.
// SUMMARY//
You may be familiar with leasing and financing as a way to preserve cash, but there are a variety of other benefits financing provides. In fact, some of the largest, most cash-rich customers in the world choose to finance their technology with Dell Financial Services because they know about the additional value that financing brings.
Ease budget constraints: First, financing allows your customer to operationalize IT acquisition costs. Instead of making a lump-sum payment for hardware, software and services, they can make payments over time and either lease or own the technology at the end of the term. That, in turn, allows them to apply the remaining funds to their business, as opposed to making a single, lump-sum payment.
Increase operational efficiency: Unlike a cash purchase, financed transactions are more fluid. Their infrastructure becomes more nimble, with the ability to grow when needed without relying on a fixed, capital budget or line item approvals. You can also tailor their lease term to fit their business goals. Do they need a lower payment? Simply extend the length of the term. Do they have too many lease agreements with different expiration dates? DFS can consolidate all of them into a single payment stream.
Simplify budgeting and payments: DFS can finance any combination of Dell, EMC and VMware hardware, software and services, including third-party products. Everything is consolidated into a single lease agreement, providing your customer with greater simplicity and a streamlined payment structure.
Accelerate ROI: Financing aligns payments to IT benefits, thereby maximizing their IT investment without the capital outlay associated with an outright purchase. This means that your customer can grow their IT to keep pace with business demands while freeing additional capital for business investments.

5. Lease vs. buy

6. Benefits of rotation leasing
Protect against technology obsolescence
Simplify asset disposal
Rotation leasing facilitates regular technology upgrades
Implement new technology all at once or on a phased basis
End of lease specialists assist with end of term equipment management
No lengthy auto-renewals
Leverage multiple end of lease services including data wipe and return logistics
End of lease residual value lowers monthly payments
Regular upgrades reduce energy and support costs
Reduce TCO
// KEY POINT//
Rotation leasing offers several unique benefits when compared with financing
Key benefits including protection against technology obsolescence and the ability to reduce the total cost of ownership (TCO).
DFS also provides end-of-lease products and services to facilitate a more efficient asset disposal process.
// SUMMARY//
Customers who lease technology assets typically do so to achieve two common goals: 1) protection against technology obsolescence and 2) reduction of costs. Let’s examine those topics a bit more closely, as well as the additional end of lease services that DFS offers.
Protect against technology obsolescence: Leasing facilitates a fixed rotation schedule whereby assets are replaced on a regular interval. Because costs are operationalized, technology can be refreshed as part of the normal lease cycle, as opposed to depending on capital budget approval. Refresh intervals can be staggered so that technology is refreshed gradually when it’s convenient for you. Additionally, DFS does not impose lengthy auto-renewals at the end of term; instead, your customer has the flexibility to renew their contract on a month-to-month basis.
Simplify asset disposal: One of the unique benefits that DFS provides is our knowledge of the resale market. We are the largest reseller of Dell EMC products and we know what those products are worth in several years’ time. That value is subtracted from the lease cost, making our Fair Market Value rates some of the most competitive in the industry.
At the end of lease, a variety of options are available, including data wipe and return logistics. We can manage as much or as little as you’d like, and any incremental cost can be operationalized as part of the lease agreement. Unlike banks, we do not impose lengthy auto-renewals. Your customer has the ability to pay month-to-month following lease expiration. And we have a dedicated team of EOL specialists who can help them determine which option is best for their business prior to contract expiration.
Reduce TCO: In addition to protecting against technology obsolescence, one of the key benefits of rotation leasing is its ability to lower their total cost of ownership. This is evidenced by a reduction in internal support costs, i.e. the time their IT staff is spending maintaining declining assets vs. innovating. By keeping assets current, IDC has shown a significant savings over a six year ownership term, which we’ll see on the following slide.

7. Case study: Leasing reduces TCO
PCs managed through rotation leasing cost 24% less than PCs that are purchased outright.*
*Source: IDC white paper, sponsored by DFS, “Financial solutions to enable your PC lifecycle strategy,” August 2017.
// KEY POINT//
Leveraging rotation leasing for two, three-year lease cycles results in a significant savings vs. a six year ownership period.
// SUMMARY//
As assets age, support costs increase dramatically, especially after year three. For customers that keep their equipment well past its useful life using a ‘fail-in-place’ methodology, there is a very tangible and rising “cost of doing nothing”. The cost is tied to the time spent by their IT staff maintaining declining assets.
IDC compared two, three-year lease cycles against a six-year ownership period and found that x86 servers that were leased cost 32% less than those that were purchased outright. By refreshing technology in year three, support costs are mitigated. Additionally, assets perform better and IT staff has more time to spend on business innovation.
IDC repeated this study with PCs and found that TCO was 24% lower.

8. About DFS
Dell Financial Services

9. $6B Amount of revenue funded annually
50+ Countries where DFS offers leasing and financing solutions directly or through partners
$6B Amount of revenue funded annually
Financing for products from ALL vendors
(Dell Technologies + third party)
Comprehensive end-of-lease services
Minority financing partnerships
Connected Customer Program
Quick facts about
Dell Financial Services
19 Years of financing experience across all Dell segments
Global coverage in 50+ countries – Where we are not owned by Dell EMC, DFS provides global coverage in another 50+ countries worldwide through an extended partner network
Funds $6B annually – This is our transaction volume post-Dell EMC combination.
Founded in 1997 – DFS has been incorporated for over 19 years and was purchased by Dell in 2006
Financing for products from all vendors – DFS can finance all solutions sold by the Dell Technologies family of businesses plus other non-Dell hardware, software and services, including any of your partners’ value-added services.
Connected Customer Program - The DFS Connected Customer Program works by automatically cross referencing a registered opportunity with Dell to your partner’s end-user customer with the DFS existing customer database. If there’s a match, your DFS rep will proactively reach out to the partner and provide a financing quote.
Comprehensive end-of-lease services – Our EOL specialists and lifecycle managers will assist you with equipment management at the end of term. Unlike other companies, DFS does not impose lengthy auto-renewals at EOL. Instead, you have multiple options, including the ability to renew month-to-month at the same rate. Should you decide to return the equipment to us, we offer a variety of fee-based services; including data wipe certification and logistics options ranging from simple transportation to advanced packaging and return. Finally, DFS has only 7 missing , wrong and damaged categories, compared to our competitor’s list of 20+.
Minority financing partnerships – For customers seeking a Minority Business Enterprise (MBE) or Historically Underutilized Business (HUB) lessor, DFS can help facilitate financing through a strategic relationship with Pharos Financial Services, L.P. Minority financing programs improve the economic conditions of communities and allow companies to develop a more diverse supplier network. We work with Pharos Financial Services whose business types include small business (but not Small Disadvantage Business or SDB), minority-owned business (Minority Business Enterprise or MBE), black American owned and HUB Zone firm.

10. Leasing options & practices Software Installment Payments
Lease types
Rotation Solution
Fair Market Value lease (FMV)
The customer wants flexibility at end of lease - return the equipment to DFS, or pay the Fair Market Value to purchase the equipment.
Ownership Solution
Finance Lease
Software Installment Payments
The customer predetermines that at the end of the lease, they will purchase the equipment or software for a buyout price of $1.
Partner
Ships and sets price for equipment to customer.
Lease agreements
DFS
Pays Partner then collects from customer.
Snap lease & Quick Contract
Snap lease is for customers who lease infrequently, or for small orders. Typically for a single order of equipment.
Quick Contract is an online process which closes the transaction quickly and results in our partners
getting paid faster.
Master lease agreement
Pre-negotiated lease terms tailored to customer needs
Rapidly order, rapidly receive
Umbrella agreement; some rights and obligations covered before lease schedule is signed
Customer
Pays DFS for use of equipment over time.
// KEY POINTS//
Understand how the leasing relationship works between you, the partner, DFS and the customer.
// SUMMARY//
Let’s discuss the different lease types and lease agreements offered through DFS. But before we do it’s important to understand how the leasing relationship works between you the Partner, DFS and the customer.
As the partner you will set the price of the equipment and ship it to the customer. DFS will pay you for the sold equipment and then begin collecting from the customer. The customer will pay for the use of the equipment over time.
As part of the leasing relationship, customers must decide which lease type and lease agreement best suits their needs. Customers should consider if they want a rotation solution – rotating their leased equipment on a regular basis, or an ownership solution – in which they’ll own the equipment at the end of the lease. DFS offers Fair Market Value leases for customers needing rotation solutions, and the Finance Lease, also known as the dollar buy out lease for ownership solutions.
The FMV, or Fair Market Value lease allows customers to pay for the use and possession of the equipment with end of lease options: Return to Dell for disposal, or purchase the equipment outright for the current market value.
The finance lease allows customers to pay monthly for the use and possession of the equipment, then at the end of the lease, buy the equipment for $1. This is great for long term ownership, and customers that expect a long lifespan from their equipment.
Once the leasing solution is determined the customers must decide if this lease should be a single transaction, covered under what’s known as a SNAP agreement or Quick Contract or part of a larger leasing initiative, covered under a Master Lease Agreement.

11. Partner benefits
Dell Financial Services

12. Creating a win/win for your customer and you!
Address your customers’ pain points with financing…
Reduce TCO
Increase ROI
Avoid disposal worry
Preserve cash
Simplify budgeting
Beat budget constraints
…and enjoy the benefits of being a DFS partner
Leverage customer relationships
Get paid faster
Offer differentiated capabilities
Enhance profitability
Total solution financing
Utilize special offers
DFS really represents another tool in your bag to address your customers’ pain points and help them deliver business results. As we’ve learned financing ensures your customer is protected by technology obsolescence and delivers a quick return on investment. Financing also allows your customers to be operationally flexible and not worried with how to dispose of their assets.
In turn you receive many benefits of being a DFS partner. From leveraging our extensive customer relationships to closing larger deal most quickly. DFS is your one stop shop for your customers’ IT financing needs.

13. Get more when you partner with DFS
Get paid faster
Electronic quoting and online contracts result in timely payment to partners
Leverage our relationships
DFS currently works with over 100k customers. Utilize these relationships to grow your business
Enhance profitability
Your company can earn up to 4% in referral fees for bringing new business to DFS
Partner
program
benefits
Offer differentiated capabilities
Your customers can pay for IT on their terms through flexible OpenScale payment solutions
Finance the total solution
DFS can finance Dell, EMC and VMware solutions plus all other non-Dell hardware, software and services
Sell 2x more
Dell EMC partners who utilize DFS are growing 2x faster with Dell EMC than those partners who are not using DFS.
// KEY POINTS//
There are many benefits that our partners receive when working with DFS.
// SUMMARY//
Let’s discuss some of the many benefits you as our partner receive from doing business with DFS.
We have built platforms that allow for a quick electronic quoting and contracts which enable YOU to get paid faster.
Enhance your profitability through our Referral Program. Your company can earn referral fees for bringing new business to DFS which we will discuss more on the next slide.
As a partner, you have the ability to grow your business by leveraging our existing extensive customer relationships. With over 100,000 relationships, it’s very likely that we are already with many of the same customers so working together will enable us to close more deals together.
DFS can finance Dell, EMC, VMware solutions plus non-Dell hardware, software and services sold directly through Dell or you, our partner, which means your customers can finance the total solutions using only one financing partner.
Offer differentiated capabilities to your customers through our flexible OpenScale payment solutions. Included in our portfolio are six OpenScale products that provide consumption-based pricing and equipment optimization.
Grow the deal size by offering your customers deferred payments and promotional offers.
Simply put, using DFS equates to more business for you. The DFS programs make it easier for you to increase sales, close larger deals faster and upsell additional products and services.

14. Refer more and earn more
Refer new customer opportunities to DFS
Earn up to 4%
in referral fees
Receive consolidated payments monthly
Grow
with
us.
// KEY POINTS//
The program is simple: as your business grows with DFS so do your referral fees.
// SUMMARY //
Significant changes to our program now allow partners the ability to earn up to 4%. Additionally, we have simplified the process by consolidating all fees
accrued in a given month and pay out in a single lump sum at the beginning of the next month.

15. Connected Customer Program
Partners register new opportunities on the Dell Partner Direct website: partnerdirect.dell.com
DFS receives notification if the end-user is an existing DFS customer
DFS Channel rep contacts the Partner to initiate financing quote for mutual customer
// SUMMARY //
In previous slides we discussed the benefit of leveraging existing customer relationships to accelerate your sales and growth of your business. The DFS Connected Customer Program works by automatically cross referencing a registered opportunity with Dell to your end-user customer with the DFS existing customer database. If there’s a match, you will be contacted by DFS.
Once you have been contacted by DFS, your DFS account manager will work with you to create a financing quote for our customer. Keep in mind, that in addition to your Dell registered opportunity, DFS can finance non-Dell hardware, software, and your value-added services.
This program will help you to leverage existing DFS relationships to drive engagement. And by positioning financing early in the sales cycle you can grow the opportunity size and improve your margins.

16. Questions?
Dell Financial Services

17. Next steps Item one Item two Item three Item four
* Terms subject to product availability, credit approval, execution of documentation provided by and acceptable to DFS.
Dell Financial Services

19. Appendix

20. International capabilities
Blue text indicates countries with DFS affiliate lenders.
ASIA PACIFIC
Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Taiwan
Thailand
AMERICAS
Argentina
Brazil
Chile
Colombia
Puerto Rico
Canada
Mexico
United States
EMEA
Austria
Belgium
Czech Republic
Denmark
Finland
France
Germany
Iceland
Poland
Portugal
Slovakia
South Africa
Spain
Sweden
Switzerland
U.A.E.
United Kingdom
Gold text indicates countries where the financial service companies are wholly owned Dell subsidiaries
Ireland
Italy
Luxembourg
Netherlands
Norway
DFS facilitates international leasing solutions in the United States, Canada and many countries in Europe. We also utilize a network of strategic lessors who offer in-country leasing solutions in more than 50 countries globally.

21. 24% 50 500 32% #1 19 $6 billion 80% 60% Dell Financial Services has
years of financing experience
of customers who finance cite reducing costs as the primary benefit
TCO savings for PCs with rotation leasing
across all Dell segments #1 50
Reason customers lease or finance?
500
Customers surveyed by IDC finance for both financial and operational reasons
countries offer DFS leasing and financing solutions globally
Protection against technology obsolescence
$6 billion
60%
32%
of customers who finance cite the ability to finance the total solution as important
x86 server TCO savings with rotation leasing
Amount of revenue funded annually by DFS
References for IDC facts:
24% TCO savings: IDC white paper, sponsored by Dell, “PC Leasing and Financing: The Benefits to Enterprises Pursuing a PC Leasing Strategy,” January 2015.
80% of customers: IDC white paper, sponsored by Dell, “IT Buyer Perceptions, Strategies, and Requirements: Results of IDC's 2012 IT Leasing and Financing Survey,” June 2012.
#1 reason: IDC white paper, sponsored by Dell, “IT Buyer Perceptions, Strategies, and Requirements: Results of IDC's 2012 IT Leasing and Financing Survey,” June 2012.
500 customers: IDC white paper, sponsored by Dell, “IT Buyer Perceptions, Strategies, and Requirements: Results of IDC's 2012 IT Leasing and Financing Survey,” June 2012.
60% of customers: IDC white paper, sponsored by Dell, “IT Buyer Perceptions, Strategies, and Requirements: Results of IDC's 2012 IT Leasing and Financing Survey,” June 2012.
32% server TCO: IDC white paper, sponsored by Dell, “Deploying an Effective Server Life-Cycle Strategy Will Minimize Costs: Leasing Is a Valuable Tool,” January 2015. 21
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