1. Developping Vendor Financing Partnerships in IT
Eurolease forum
Richard Gendreau
16th May, 2013

2. BNP Paribas Leasing Solutions Global overview
Ranks 1st in Europe

4. BNP Paribas Leasing Solutions An organisation Specialised by Markets
3 International Business Lines
to remain close to our client’s
and partner’s needs:
Technology Solutions
Specialised in technological assets:
Office Equipment
IT (hardware, software)
Telecom equipment
Medical
Equipment & Logistics Solutions
Specialised in professional rolling equipment:
- Farming Machinery, Construction and Public Works equipment, Materials Handling equipment, Light Commercial and Commercial Vehicles.
Bank Leasing Services
Specialised in leasing solutions for Bank’s customers
A focus of our know-how on certain markets in order to remain close to our client’s and partner’s professional culture and to continue to develop innovative solutions.

5. Why ? Why investigate the IT market for vendor financing ? Wide market
Attractive from a growth perspective
Tech refresh fits with renting … and thus to a vendor financing model

6. Findings IT vendor financing - Findings
Information Technology is not ONE market but SEVERAL marketS
Software # Hardware
Hardware relates to PCs, Servers, Storage, Printers…
Small ticket # Mid / Large ticket
Tier 1, tier 2 & tier 3 distribution models
Vendor financing penetration remains weak
_aaS take up
PaaS, IaaS, SaaS models…

7. Roadmap Roadmap will depend upon
Type of partner Manufacturer, Software Editor, Reseller, VAR, Distributor, VAD, Integrator… ?
End user typology Corporate Accounts, Mid Caps, SMEs, Professionals
… Vertical Markets ?
Geography Mature country / Emerging market… or economically depressed?
The IT market represents an attractive opportunity for lessors investing in a vendor finance but it requires
The implementation of specific structure(s)
The design and roll out of the right products and services
A cultural fit

8. IT market(s) segmentation
Wholesale
Retail
Partners
Global vendors
Resellers
Ticket size
Mid/Large
Small
Commercial Fronting
Vendor
Vendor relation
Centralized
Decentralized
Product offering
Renting
IPAs
Leasing
Client
Mid Market
Large Corporates
Professionals
SME
Referral
VARs
Mid
Lessor
Coordinated
Master & Schedules
SME
Mid Market
Large Corporates

9. Main stakes per market segment
Wholesale
Retail
Key Value
Drivers
Large coverage
International centralised organisation
Country SPOCs
Sales coverage in the field
Strong marketing support
Fast & simple processes
Key Success
Factors
Top down governance
Large volumes to gain granularity of the portfolio
Structure an efficient and profitable model
Strong sales engagement
Key
Performance
Indicators
Volumes
SLAs
Sales penetration
Risk indicator per partner
Productivity

10. IT Retail : How Do We Make It Happen...
IT Retail: “Position Leasing as a Sales Aid and Not a Product to Sell”
Make It Easy
Training Programme – sales, ops
Helpdesk from Origination to Booking
Rate Calculators; Lease v Cash Tool
On line tool; from Quote to Contract
Increase Awareness
Product Promotions
Exhibition Support
Help Partners to Add Value to their Customers
Co Branding
Credit Checks
Joint Meetings with Key Customers
Internally Establish Cross Functional Teams
Sales, Marketing, Ops, Risk & IT

11. IT Wholesale : Global approach
IT Wholesale: “Provide a One Stop Shop”
Need for :
Geographical coverage
Top Down governance
Consistent approach and processes
Tailor made structures
Operational excellence
Points to note
Time to break even
“Imperfect” paper
Granularity of the portfolio
Operating risks

12. Software financing : Specific approach
Software financing: “Dispel the Myths that Software cannot be Financed”
Lessor cultural adjustment
Credit policies
Contractual package
Litigation & Recoveries processes
Vendor leasing to progress
Financing not in the vendors’ DNA
Strategic stance
Education & Engagement !

13. Momentum But also because IT is a fast moving reality
Innovation is crucial need to anticipate: hosted, _aaS,
Service is growing FM, TCO
Adapt constantly difference is blurring between assets
Act local stay close to reality
Think global & implement local !

14. Vendor financing
And of course, all that is relevant for traditional vendor programme is relevant in IT financing.
We need
Mutual understanding of the Potential Expectations & Benefits for Each Party
Mid term commitment Because it Takes Time !
Engagement plan Shared reponsabilities & Roles of the Parties Properly Defined
Value proposition Target ‘Sweet Spots’ & Match Ambition with Capability
Governance Steering Committees, Business Reviews...etc.
… in a word « customer intimacy »

15. BNP PARIBAS LEASING SOLUTIONS International Business Line
Technology Solutions
Richard GENDREAU
Head of Partnerships
+33 (0) 15