2. GAPP Kurt De Buck Bregt Bourgeus

3. Agenda  WHAT IS GAPP  GAPP IN BELGIUM  PC PRIVE – THE LAW  PC PRIVE – YOUR OPPORTUNITY

4. GAPP WHAT IS IT?

5. Government Assisted PC Programs Empowered centralised Government body Industry consortium Communication Campaign Improve ICT skills citizens Digital Inclusion Improve Education Build efficient eGov infra- structure Gov. priorities Intel expertise Enabling greater PC and solutions penetration thru sustainable usage models supported by government incentives and flexible PC acquisition schemes

6. Government Assisted PC Programs  Joint Governement & Industry cooperation –Telco: internet –Local Integrator: PC –Bank: low interest financing –Repay through Telephone bill … –Government: Sponsors – Public + visible Campaign  Various Options of Audience –Employees = EPP – Employee Purchase Program –Education = SPP – Student Purchase Program –xPP = different demography segments – e.g. senior (SePP), low income etc. –SME link to eGovt = Mature + Emerging mkts

7. WORLD WIDE

8. GAPP IN BELGIUM?

9. LOW PC HOUSEHOLD PENETRATION (52 TO 54%) = BELOW EUROPEAN AVERAGE

10. ONE GAPP PROGRAM LIVE IN BELGIUM PC PRIVE EMPLOYEE PURCHASE PROGRAM

11.  Gov’t efficiencies  Country competitiveness  Build eGov Infrastructure  Computer Literacy  Shrink Digital Divide Employees Government Industry Employers  Cost savings  Education  Career  Convenience  Up-skill Workforce  Employee Productivity  Add’l. Employee Benefit  Job Flexibility  Operational savings  Sell  Sell Up  New  New route to Market  TAM Expansion  Pull  Pull for Other Equip/Svcs PC PRIVE Industry Industry = YOU

12. PC PRIVE THE LAW

13.  EMPLOYEE BECOMES OWNER OF PC & PERIPHERALS  Employee does the purchase within the guidelines of the employer plan + pays VAT + pre finances the purchase + brings in the invoice  Offer can include printer, scanner, PDA (as peripheral) but also broadband & software  Reimbursement by the employer limited to max 60% of the purchase price (excluding VAT) and with maximum of 1250 € OPTION 1 FOR ALL EMPLOYEES SAME OFFER

14. EXAMPLE EMPLOYEE EMPLOYER € € Reimburses 60% of 1600 € = 960 € € Tax recup (33,99%) = 326 € COST = 634 € € Pays 40% of the 1600 € + VAT € COST = 976 € € 1600 € € + 336 € (VAT) € = 1936 €

15.  EMPLOYER OWNS THE PC AND PERIPHERALS  Employer buys the material and offers it to the employee for home usage  A. This home usage is considered a taxable benefit, fixed at 180 € for the PC & 60 € for internet per year  B. The employee does not have to report the benefits to tax authorities when he pays these amounts to the employer directly ( see example next slide ) OPTION 2 FOR DIFFERENT EMPLOYEES, DIFFERENT OFFER POSSIBLE

16. EXAMPLE € 1600 € € + 336 € (VAT) € = 1936 € EMPLOYEE EMPLOYER €) €) = € OR € Buys PC (1936 €) & 3 years BB (1260 €) = 3196 € OR 1065 € a year € € Minus 240 € (employee contribution) = 825 € € Tax recup = 280 € € Final COST = 545 € € PER MONTH/EMPLOYEE = 45 € € Pays 240 € a year (PC & internet) to employer PER MONTH = 20 EUR

17. PC PRIVE A SUCCES?

18.  WHICH PERCENTAGE OF COMPANIES IS AWARE?  WHO DECIDES?  WHICH PERCENTAGE HAS ROLLED OUT?  ARE EMPLOYEES HAPPY?  ….

19. PC PRIVE SURVEY UNDER EMBARGO

20. 1 OUT OF 4 COMPANIES IS NOT AWARE ABOUT EPP - MAIN SOURCE OF INFORMATION IS PRESS - BIG POTENTIAL FOR RESELLERS TO PC PRIVE DISCUSS FTF NEED TO REMOVE ROADBLOCKS BUDGET NEEDS & FOCUS ON MUTUAL BENEFITS

21. 18% WITH EPP EXPERIENCE   Top 2 reasons for roll out – –increase IT skills employees – –incentive or extra bonus   1 out of 2 doesn’t know which option   85 % initiated by HR department   Top 1 obstacle = THE BUDGET   Top 3 elements EPP package – – 81% PC, 31% printer, NB 11% 94% OF THE EMPLOYEES IS SATISFIED ABOUT PC PRIVE

22. 82% WITHOUT EPP EXPERIENCE  Up to 70% of EPP projects evaluations initiated by HR, –19% by IT –17% by CEO  79% evaluates internally, only 13% with external partner MAJORITY OF COMPANIES IS NOT EVALUATING PC PRIVE

23. FUTURE PC PRIVE PLANS   74 % has NO plans – –Lack of budget (17%) – –Lack of management commitment (10%)   14% has plans Timing% 200517% 200634% 200717% 20087% MAJORITY OF COMPANIES HAS NO PLANS …………… YET

24. YOUR OPPORTUNITY Those who have tried it are enthusiastic. It works! 25% are not familiar. Go sell it! The obstacles can be addressed Projects got stuck in complex decision making – sell a total/simple solution! People are sitting with wrong assumptions PC Privé is a social investment and builds loyalty – do not use it in wage negotiations! Blue collar workers are enthusiastic about PC Privé!

25. PC PRIVE VEDIOR INTERIM TESTIMONIAL

26. VEDIOR INTERIM

27. PC PRIVE GO FOR IT!

28. THANK YOU INTEL’S GAPP TEAM IS HERE TO HELP YOU