© 2005 Lenovo
Lenovo Confidential
Lenovo Announcements
New Brand, New Products, and New Ways of Doing Business
2Lenovo Confidential – February 17, 2006© 2005 Lenovo
1st Half 2006 Channel Disclosure Package
Lenovo America’s Objectives - 2006 Establish Lenovo in market
High Quality & Reliable
Products
Service
Excellence
Innovation
Customizedservice
CTOLeadMgmt
CustomerMkting
Customize TCO Stable
MarketingProduct
Standard service
BTSChannel
Mgmt
Supply
Product
Mkting
Innovative Std. config
Sales Service
Product driven model = NEW OPPORTUNITIES!!
Customer driven model
Transactioncustomers
Relationshipcustomers
Establish a Dual Business Model
Launch Lenovo branded Products for SB and continue to grow Think branded products in MM, LE and PS.
© 2005 Lenovo February 23, 2006 3
Lenovo 3000 – Launching Feb 23rd
Excerpts from Feb 23rd Press Release
- A significant milestone in the PC industry
- A culmination of Think and Lenovo research leaders, scientists and product design teams from around the world
- Coming together to create one of the first truly international PC brands
- Delivering on its promise to extend innovation to more customers, Lenovo leveraged its new world-class engineering team to develop a unique suite of built-in productivity tools, called Lenovo Care, that empower value-conscious customers with a worry-free computing experience
Be sure to review and understand the supporting product family positioning and Internal Q&A documents sent along with today’s presentation
© 2005 Lenovo February 23, 2006 4
Small Business Accounts for Half of All Business PC Sales
94M PC Unit Sales within Business Segments,4Q04-3Q05
SB 1-99
LB 500+
MB 100-499
Source for share, 4Q growth and volume: IDC WW PC Quarterly Tracker 3Q05Source for CAGRs: Lenovo MI internal data
CAGR 2005-09: 6%Lenovo Share: 15%
CAGR 2005-09: 7%Lenovo Share: 11%
CAGR 2005-09: 10%Lenovo Share: 6%
© 2005 Lenovo February 23, 2006 5
Lenovo’s Share is Skewed to the Upper Price Cells
WW Opportunity and Lenovo Unit Share by Price BandLB/SMB Total Client: 4Q04-3Q05
$0-$499 $500-$799 $800-$999 $1,000-$1,199
$1,200-$1,499
$1,500-$1,999
$2,000+
4Q04-3Q05 Total Market Lenovo Share
Source: Gartner Personal Computer Quarterly Statistics Worldwide by Region – Final Database 22Nov 2005
© 2005 Lenovo February 23, 2006 6
Customizedservice
CTOLead
ManagementCustomerMarketing
Customization New technology TCO Stable
Dual Business Model
MarketingProduct Development
Standard service
BTSChannel
Management
Supply Chain
Product
Marketing
Innovative/industrial design
New technology Standard
configuration
Sales Service
Product driven model = NEW OPPORTUNITIES!
Customer driven model
Transactioncustomers
Relationshipcustomers
7Lenovo Confidential – February 17, 2006© 2005 Lenovo
1st Half 2006 Channel Disclosure Package
Small Business Customers – Who Are They?
Think & 3000 ProductsImage & Innovation CustomersMix of all small business up to 99 employeesMay or may not have an IT departmentNotebook-centric companiesCares about PC aesthetics
3000 ProductsValue/Protection/Service CustomersPrimarily 1-19 employees Typically has no IT staffLess data-intensive business
Think ProductsLifeline CustomersPrimarily 20-99 employees Typically has an IT staffHighly reliant on PCs for core business
Source: Small Business & Very Small Business PC MarketGartner Research Study Commissioned by LenovoOctober, 20005
© 2005 Lenovo February 23, 2006 8
Extension of products for new markets
Launch new line of Lenovo branded products (desktop and notebook) to a worldwide audience
This is the first launch of Lenovo-branded products!
Improve breadth of product portfolio, particularly for small business / very small business
Sell to customers who don’t buy ThinkPad and ThinkCentre today!
© 2005 Lenovo February 23, 2006 9
3000Family
ThinkBrandedProducts
•Worry-free•Great Value•Exciting/Stylish
The Smart Choice
•Success/Prestige•Rock Solid•Lowest TCO
Ultimate Business Tool
Customer Type
TransactionalRelationship
Different,Better
Standard
LE/Mid Market ConsumerSmall Business
Product Core Positioning
© 2005 Lenovo February 23, 2006 10
A More Complete Lenovo Desktop Product Line
ThinkCentre M SeriesM Ultimate Stability and Manageability for the Enterprise
ThinkCentre A SeriesA Quality, Reliability, and Manageability
ThinkCentre E Series Essential Business Features, Great
Value
E
J 3000 J SeriesThe Smart Choice for Small Business Needs and Budgets
© 2005 Lenovo February 23, 2006 11
Lenovo Care One-Button System Recovery Performance Restoration Automatic Updates
Contrasting front bezel color Side-access air venting Award-winning keyboard Tool-less entry chassis
1 year warranty IBM Service and Support
Lenovo 3000 J Series Product Overview
SiS 661 Chipset with Pentium 4 and Celeron Dprocessors or AMD Socket 754 board with AMDSempron and Athlon processors
Serial ATA drive support 6 USB 2.0 ports, 2 in front Front audio
© 2005 Lenovo February 23, 2006 12
Lenovo 3000 J Series - Key BenefitsNew, innovative desktop line from Lenovo offers worry-free computing at a great value
Worry-free computing through Lenovo Care- Performance Restoration: Keep your PCs running like new- 1-Button System Recovery: The only PC that can recover from a virus at the click of a
button - Automatic Updates from Lenovo: The only PC that updates itself
Great Service and Support available from IBM- Great products from Lenovo and the best in support from IBM makes a great combination
Easy to Buy- Products are available how you want them, where you want them, when you want them
Great value- Attractive prices for a range of technology that meets your needs- Competitive entry price points for first time buyers- Lenovo’s world-class engineering delivers high quality, reliable desktop/notebook PCs.- 1-year industry standard warranty with the option to increase to 3 years- Incredible software and Lenovo solutions come preinstalled and standard
Targeted at the Small Business (1-99) Segment
© 2005 Lenovo February 23, 2006 13
Lenovo Desktop Product Line
ThinkCentre A51 Designed for Small
Business Variety of form factors
$500
$800
$1200+
ThinkCentre M52 Next enterprise stable
platform ThinkCentre A52 Next generation of Small
Business modelsFebruary Announce
ThinkCentre E50 New offering for Small
Business
3000 J Series Intel & AMD offerings
3000 J100/J105
$400
$300
© 2005 Lenovo February 23, 2006 14
Lenovo 3000 J100 Tower Proven technologies include SiS® 661 Chipset
-AGP Slot
-Pentium® 4 processors
-Serial ATA hard drive support up to 250GB
-6 USB 2.0 ports, 2 in front
-Front audio
New 4x4 (25L) Tower Design
-Durable steel chassis, tool-less entry
-3 PCI and 1 AGP slots for expansion
-14.7”H x 18.0”D x 7.1”W
Model CPU GHz FSB Memory HDD GB Optical Modem Speakers FDD O/S MS SBE List Price
825325U P4-516 2.93 533 256 80 CD-ROM Y EXT Y XP-Home N $499
825326U P4-516 2.93 533 256 80 CD-ROM N None Y XP-Pro N $549
8253D4U P4-630 3.00 800 512 80 Combo Y EXT N XP-Home N $599
825328U P4-516 2.93 533 512 80 Combo N None N XP-Pro N $599
8253D5U P4-630 3.00 800 512 80 Combo N None N XP-Pro N $649
8253E1U P4-640 3.20 800 512 80 Combo N None N XP-Pro N $699
8253D6U P4-630 3.00 800 512 160 MULTI N None N XP-Pro N $699
8253E2U P4-640 3.20 800 1024 160 MULTI N None N XP-Pro N $799
825327U P4-516 2.93 533 512 80 CD-ROM N None Y XP-Pro Y $849
© 2005 Lenovo February 23, 2006 15
Lenovo 3000 J100 Tower GBB
3000 J100825325U
P4 516 (2.93GHz) 256MB/80GB/CD/XPH
$499
3000 J100825326U
P4 516 (2.93GHz) 256MB/80GB/CD/XPP
$549
3000 J1008253D6U
P4 630 (3.00GHz) 512MB/160GB/Multiburner/XPP
$699
3000 J1008253D5U
P4 630 (3.00GHz) 512MB/80GB/Combo/XPP
$649
3000 J1008253E2U
P4 640 (3.20GHz) 1024MB/160GB/Multiburner/XPP
$799
3000 J100825328U
P4 516 (2.93GHz) 512MB/80GB/Combo/XPP
$599
© 2005 Lenovo February 23, 2006 16
Lenovo 3000 J105 Tower Proven technologies include AMD Socket 754 board
-AGP Slot
-AMD Sempron and Athlon 64 processors
-Serial ATA hard drive support up to 250GB
-6 USB 2.0 ports, 2 in front
-Front audio
New 4x4 (25L) Tower Design
-Durable steel chassis, tool-less entry
-3 PCI and 1 AGP slots for expansion
-14.7”H x 18.0”D x 7.1”W
Model CPU GHz FSB Memory HDD GB Optical Modem Speakers FDD O/S MS SBE List Price
8258J4U Sempron-3000+ 1.80 N/A 256 80 CD-ROM Y EXT Y XP-Home N $349
8258H7U Athlon 64-3200+ 2.20 N/A 256 80 CD-ROM Y EXT Y XP-Home N $399
8258J6U Sempron-3000+ 1.80 N/A 512 80 Combo Y EXT N XP-Home N $399
8258J5U Sempron-3000+ 1.80 N/A 512 80 CD-ROM N None Y XP-Pro N $449
8258H1U Athlon 64-3200+ 2.20 N/A 256 80 CD-ROM N None Y XP-Pro N $479
8258H8U Athlon 64-3200+ 2.20 N/A 512 80 Combo N None N XP-Pro N $529
8258HAU Athlon 64-3200+ 2.20 N/A 512 160 MULTI N None N XP-Pro N $579
8258HBU Athlon 64-3200+ 2.20 N/A 1024 250 MULTI N None N XP-Pro N $679
8258H9U Athlon 64-3200+ 2.20 N/A 512 160 Combo N None N XP-Pro Y $799
© 2005 Lenovo February 23, 2006 17
Lenovo 3000 J105 Tower GBB
3000 J1058258J4U
Sempron 3000+ (1.80GHz) 256MB/80GB/CD/XPH
$349
3000 J1058258H7U
Athlon 64 3200+ (2.20GHz) 256MB/80GB/CD/XPH
$399
3000 J1058258H1U
Athlon 64 3200+ (2.20GHz) 256MB/80GB/CD/XPP
$479
3000 J1058258HAU
Athlon 64 3200+ (2.20GHz) 512MB/160GB/Multiburner/XPP
$579
3000 J1058258H8U
Athlon 64 3200+ (2.20GHz) 512MB/80GB/Combo/XPP
$529
3000 J1058258HBU
Athlon 64 3200+ (2.20GHz) 1024MB/250GB/Multiburner/XPP
$679
© 2005 Lenovo February 23, 2006 18
Thoughtful Design- Stylish and functional
Great Value- Attractive pricing for a range of
technology that meets customerneeds
- Competitive entry price points for first time buyers- Lenovo world-class engineering delivers high quality, reliable
notebook PCs (Makers of the award-winning ThinkPad)- 1-year industry standard warranty with the option to increase
to 3 years
Lenovo 3000 Notebook Benefits
© 2005 Lenovo February 23, 2006 19
Lenovo 3000 C100: Key Offering Information Key offering features:
- Based on Intel “Sonoma” Platform in a 15” Form Factor.
- Worry-free computing experience
- Outstanding value starting at $599
- Stylish design
Business Objective
- The C100 is part of a new line of notebooks and desktops from Lenovo designed to reach VSB (1-99) segment.
- The C100 offering is designed for professionals who want affordable, worry-free yet powerful notebooks.
C100 Positioning:
- The C100 targets value- and service-conscious professionals
- Offering focus: Affordable and powerful, multimedia-friendly, wireless connectivity in an offering that’s worry-free.
- Offering targets professionals who are mobile, but don’t demand extreme mobility
© 2005 Lenovo February 23, 2006 20
6.2 lbs
CommunicationsIntel a/b/g (Centrino)Lenovo a/b/g 10/100 Ethernet LOMWireless On-off switch
PerformanceIntel Pentium M, 533 Mhz, up to 2GhzCeleron M, 400 Mhz, up to 1.7GhzIntel Centrino Mobile Technology915GM chipset 400/533 Mhz FSBUp to 2GB of DDR2 533MHz memory Up to 80GB 5400rpm (12.7mm PATA)
Battery Life8 CellUp to 4.5 hours for Intel Celeron
Up to 5 hours for Intel Pentium M Processors
Integrated Graphics15” XGA (1024 x 768) res. Intel Graphics Media Accelerator 900
DesignStylish Silver CoversLenovo Full Sized Keyboard (6 Rows) w/ power button and Lenovo Care button
Two-button Touch Pad
4 USB 2.0 ports and 1394 (4 pin)Integrated MicrophoneStereo Headphone and SpeakersVGA and S-Video3 in 1 Multicard Reader
Ports
Lenovo 3000 C100 Product Overview
Productivity Lenovo Care Symantec Client Security Rescue and Recovery Access Connections
Support One Year Warranty IBM Service and Support
13.1” (W) x 10.9”(D) x 1.3”-1.4” (H)
© 2005 Lenovo February 23, 2006 21
Lenovo C100 NotebookSleek, stylish Design
• Stylish Lenovo Notebook Design
• 15” XGA
• Industry Leading Keyboard
• Only 6.2lbs !
Multimedia Features
• 3 in 1 Multi-card Reader
• 4 USB, 1394, S-Video
• Multimedia center allows for easy management of photos and music
• Integrated Combo or DVDRW-Dual Layer
Core Technology
• Pentium M or Celeron M Processors
• DDR2 533MHz memory
• Intel GMA 900 Integrated Graphics
• HDD’s up to 80GB 5400 rpm
• Integrated ABG WLAN, 10/100 Ethernet, modem – Standard on all models
• 8 Cell Lithium Ion Battery – up to 5 hours !
Top Differentiators
• Lenovo Care
• IBM Service & Support
• Industry leading keyboard
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C100 0761-22U 15.0" XGA Integrated 915GM N N Celeron M 370 (1.5) 40GB Combo 256MB Lenovo a/b/g XP-Home $599C100 0761-2BU 15.0" XGA Integrated 915GM N N Celeron M 370 (1.5) 80GB DVDRW - DL 512MB Lenovo a/b/g XP-Home $699C100 0761-23U 15.0" XGA Integrated 915GM N N Celeron M 370 (1.5) 80GB Combo 512MB Lenovo a/b/g XP-Pro $749C100 0761-24U 15.0" XGA Integrated 915GM N N Pentium M 740 (1.73) 40GB Combo 512MB Intel a/b/g XP-Home $849C100 0761-2CU 15.0" XGA Integrated 915GM N N Pentium M 740 (1.73) 40GB DVDRW - DL 512MB Intel a/b/g XP-Home $899C100 0761-25U 15.0" XGA Integrated 915GM N N Pentium M 740 (1.73) 80GB Combo 512MB Intel a/b/g XP-Pro $899C100 0761-26U 15.0" XGA Integrated 915GM N N Pentium M 740 (1.73) 80GB DVDRW - DL 512MB Intel a/b/g XP-Pro $999
© 2005 Lenovo February 23, 2006 22
* For Approval
**Place Holder
Lenovo 3000 C100 Entry & Mainstream Notebooks at an Exceptional Value
Images not Final
LCD Bezel
Strip Cover/Hinge Cap
Model Number
Lenovo Logo
Industry Leading Keyboard Design
Industry Standard Touch Pad
Touch Buttons
Microphone
HDD/Card Reader/Caps Lock/Number Lock/Blue Tooth LED Deco plate
Power/ Lenovo Care/ Mute Buttons
3000 C100
Gray Interior
Silver Exterior
© 2005 Lenovo February 23, 2006 23
14”
$200015”
14”Wide
$2500
$3000+
X Series
$1500
$1000
$500
T SeriesX41
TabletZ60t
T SeriesWorkstation
Z60m
R51e$1299
$1899
$1299$1099
$899
$949
$799
12”
12”15”
Wide
C100
14”W
R Series
15”W$599
$799$849
N100
15”
15”
T Series
$1399
14”
$899
R Series
N100
Lenovo Notebook Portfolio Positioning
© 2005 Lenovo February 23, 2006 24
Lenovo 3000 Meets the Needs of the Small Business User
1 Lenovo Care Performance Restoration 2
3 One-Button System Recovery Automatic Updates 4
5 Simple Network Connectivity and Management
Award-winning Service and Support Backed by IBM
6
7 Best Keyboards on the Planet Great Value 8
9 Thoughtful Design Simple Security 10
Next Topic
© 2005 Lenovo February 23, 2006 25
Lenovo 3000 -- Channel Model – Highlights
Aggressive List pricing for SB & VSB market
- Plus: Lenovo Innovation, Quality, Service and Support Excellence
- Plus: Reseller Support (TAP, Web Portal, presentations, proposals, etc.)
In Stock @ Distribution – Buy from Distribution
‘No Hassles’
- No Direct conflict - Lenovo Direct sales team cannot discount off of ‘List’ price
- No DRC/Retail conflict – MAP policy to level playing field between DRC/Retailers and VARs
- No rebates to worry about
- No Special bids, Lead-with-Lenovo or pre-approved bids to worry about
- No Business Partner authorization required
© 2005 Lenovo February 23, 2006 26
Lenovo 3000/Express Margin StructurePChoice Direct sales to VAR
Changes
CDT Express 8% No ChangeCDT 3000 N/A Buy from Distributor
MOB Express R 8% No Change
MOB Express
T X Z
10% 2 Points Higher than Express today
on T, X & ZMOB 3000 N/A Buy from Distributor
Monitors 14% 6 pts Higher Margin than today
Options – High Flyers
19% 5 Points Higher Margin than today
Options 14% 6 Points Higher Margin than today
Services 25% No Change
The New Discount Levels will be implemented March 1st
© 2005 Lenovo February 23, 2006 27
Lenovo 3000 – Programs Lenovo 3000 products WILL BE ELIGIBLE for these programs:
- Technology Access Program
- Fee Offering Program
- Corporate Employee Purchase Program
Lenovo 3000 products WILL NOT BE ELIGIBLE for these programs:
- Proplan – Member level rebate
- ProPlan – Advanced level rebate
- ProPlan – Premier target program
- New Customer Bonus Program
- Think Express Rebate
- Think Express Rep Spiffs
© 2005 Lenovo February 23, 2006 28
Lenovo Partner Network – Stay Tuned
Lenovo Partner Network – Replacement for IBM PartnerWorld Coming Soon
- SMB/VSB VAR
• Simple program that provides better reseller support than offerings from other vendors
• Focus on Think Express and Lenovo 3000
- MM / LE VAR
• Program that recognizes Vendor and Reseller have to be tightly integrated in the MM / LE space
ThinkVantage Technologies / Total Cost of Ownership
Complex opportunities - longer sales cycle
• Plan-based funding for demand generation
• Funding for Lenovo Advocate
• Focus on Think branded products
© 2005 Lenovo February 23, 2006 29
Next Steps/Q&A
Contact Your Existing ‘Think’ Customers
- Inform your existing Think Customers of the new Lenovo announcement
- We want your customers to hear the Think vs. 3000 message from you – their trusted advisor.
- Email script available
Use Lenovo 3000 to Win New Customers
- Email script & product presentations available
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