Lenovo:  More Than Just a PC Company 2010 <ul><li>name/title </li></ul>
Changes for v1.3 <ul><li>Slides 5,6: Added TBR 4Q09 study results </li></ul><ul><li>Slide 11: Added cleaner view of result...
Lenovo Has Strength for Today and Tomorrow <ul><li>22,000 employees in more than 60 countries </li></ul><ul><li>1,700 desi...
Remember These Important Things About Lenovo <ul><li>Lenovo is dedicated to building the world’s most exceptionally engine...
The Experts at TBR Agree That Lenovo Means Reliability March 17, 2010 4Q Notebook Hardware Reliability 4Q Desktop Hardware...
We Just Have to Quote the Experts to Prove Our Point In addition to  maintaining control  over the single most critical co...
Our Strategic Direction is to Expand and Grow Profit  Contribution Time Large Enterprise Public Sector Education China Sma...
Our Strategic Direction is to Expand and Grow Profit  Contribution Time Protect and Grow Invest Attack Global  Large Enter...
<ul><li>Growth in every geography world wide </li></ul><ul><ul><li>World wide year to year unit sales up 42% </li></ul></u...
<ul><li>Growth in every geography world wide </li></ul><ul><ul><li>World wide year to year unit sales up 42% </li></ul></u...
<ul><li>Growth in every geography, world wide </li></ul>Lenovo is the World’s Fastest Growing PC Manufacturer! <ul><ul><li...
Complete IT Solutions Through Offerings and Partnerships Software Image Management End-User Data Migration Connectivity Ma...
Complete IT Solutions Through Offerings and Partnerships Image Ultra Builder System Migration Assistant Access Connections...
Award Winning Design From The ‘Innovation Triangle’  <ul><ul><li>Over 100 design awards and counting </li></ul></ul><ul><u...
Technology Leadership and an Expanding Portfolio All-in-One 24” Multi-touch W700 dual screen T410s X100e U1 Hybrid A300 Sk...
Innovation Increases Quality, Reliability and Productivity
Lenovo Business Desktops Go All-In-One Greenest line of desktops in industry ($26 savings/yr) Most secure, better thermals...
Customers Demand and We Deliver Lower Failure Rates Warranty Claim Rate Warranty Claim Rate 2009 industry average* 2009 Le...
The ThinkGreen Approach Energy Efficient Power Manager ENERGY STAR 5.0   Green Materials  Post-consumer recycled plastic E...
The ThinkGreen Approach 0 dB 22 dB
Bulk Packing Saves Time, Money and The Environment accessories in top layer
Lenovo Investments for Business Excellence <ul><li>We continue to invest in our future: </li></ul><ul><ul><li>Primary oper...
Lean Six Sigma: Improvements in all Areas of Business <ul><li>Lean: Increasing customer value </li></ul><ul><ul><li>Elimin...
A Global Supply Chain to Meet All Your Needs <ul><ul><li>Extensive Global Supply Chain </li></ul></ul><ul><ul><li>9  Manuf...
A Global Service Parts Network to Reach All Customers  <ul><ul><li>Parts network provides: </li></ul></ul><ul><ul><li>Next...
Continuous Improvements in Quality <ul><li>Rigorous quality standards </li></ul><ul><li>Exceptionally engineered PC’s </li...
Continuous Improvements in Our Global Supply Chain <ul><li>Dependable </li></ul><ul><ul><li>Consistently execute to first ...
Lenovo’s Global Supply Chain 2009 Awards <ul><ul><ul><li>2009 Supply Chain Excellence of the Year Award  </li></ul></ul></...
Lenovo is Outgrowing The Industry http://www.thestreet.com/_yahoo/story/10661437/1/in-the-pc-race-dell-fell-again.html?cm_...
Lenovo’s Segment Route Mix
Opportunity, Opportunity, Opportunity! 71 % Other
Some Customers Have Very Unique Demands
Some Customers Have Very Unique Demands
Lenovo’s Commitment to Our Customers <ul><li>Technology Leadership, Quality & Reliability </li></ul><ul><ul><li>Lowest ind...
Lenovo:  More Than Just a PC Company
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  • China = 15.5K includes regs and nonregs AG/EMEA/AP = 6.8K includes regs and nonregs Bill Perez HR Operations Project Office gperez@lenovo.com Bldg1 4Q14 919-257-5319
  • Author: Julie Perron (julie.perron@tbri.com), CSAT Project Manager
  • Author: Julie Perron (julie.perron@tbri.com), CSAT Project Manager
  • *Keeping Notebooks Past Their Prime: A Study of Failures and Costs A J. Gold Research Associates Report - April 2009
  • Less packaging waste for disposal Desktop: Saves 0.5kg (1.1lbs) – 1.95kg (4.3 lbs) per system Laptops: Saves 0.3kg (0.7lbs) – 1kg (2.2lbs) per system Less storage and staging space required (approximately 2X density) Easier tracking and better security with fewer pallet loads shipped Example: T60 15inch 500 piece order = approximately 14 pallets, with bulk packaging approximately 8 pallets
  • We have a new distribution center in Sacramento
  • Who Is Lenovo 2010

    1. 1. Lenovo: More Than Just a PC Company 2010 <ul><li>name/title </li></ul>
    2. 2. Changes for v1.3 <ul><li>Slides 5,6: Added TBR 4Q09 study results </li></ul><ul><li>Slide 11: Added cleaner view of results relative to AG </li></ul><ul><li>Slides 12, 13: Added ThinkPlus logo for Services </li></ul>
    3. 3. Lenovo Has Strength for Today and Tomorrow <ul><li>22,000 employees in more than 60 countries </li></ul><ul><li>1,700 designers, scientists and engineers </li></ul><ul><li>7 research and development centers </li></ul><ul><li>12 manufacturing and assembly centers </li></ul><ul><li>$15B in revenue </li></ul><ul><ul><li>Nearly $5B in 3Q09 and over $12B thru 3Q’s </li></ul></ul>
    4. 4. Remember These Important Things About Lenovo <ul><li>Lenovo is dedicated to building the world’s most exceptionally engineered PC’s and mobile internet devices that combine the latest technology, sharpest design, and richest usage model to deliver the highest value and best end user experience. </li></ul><ul><li>Lenovo, as a strategic focus, is dedicated to minimizing our environmental impact in all areas of our business. </li></ul><ul><li>Lenovo’s commitment to innovation introduces more industry firsts and technology that set the bar for consumers and business users. </li></ul><ul><li>As we emerge from the current global economic downturn, Lenovo is in a position to lead and outperform the market. </li></ul>
    5. 5. The Experts at TBR Agree That Lenovo Means Reliability March 17, 2010 4Q Notebook Hardware Reliability 4Q Desktop Hardware Reliability Lenovo achieves customer delight by consistently delivering on it’s longstanding reputation for Think Brand quality and service excellence
    6. 6. We Just Have to Quote the Experts to Prove Our Point In addition to maintaining control over the single most critical competitive strength – hardware reliability – Lenovo went on to reclaim past competitive advantages……. Dell’s satisfaction positions weakened considerably …. with notebook value being the most recent among weakening positions….. HP’s scores have been hit the hardest in the 4Q09 reporting period ….. three successive calendar quarters of declining ratings…. March 03, 2010 Notebooks: Corporate IT Buying Behavior & Customer Satisfaction Survey Dell HP
    7. 7. Our Strategic Direction is to Expand and Grow Profit Contribution Time Large Enterprise Public Sector Education China Small Business Emerging Markets Consumer Protect and Grow Core Business Attack Hyper Growth Business Invest New Opportunity Server Workstation Software Services
    8. 8. Our Strategic Direction is to Expand and Grow Profit Contribution Time Protect and Grow Invest Attack Global Large Enterprise Public Sector Core Business MM & SMB Emerging Markets Consumer New Opportunity Server Software Services Hyper-growth Business
    9. 9. <ul><li>Growth in every geography world wide </li></ul><ul><ul><li>World wide year to year unit sales up 42% </li></ul></ul><ul><ul><li>Desktop shipments up 18% YTY & notebook shipments up 68% YTY </li></ul></ul><ul><ul><li>Overall market up to 9% </li></ul></ul><ul><ul><li>Mature Markets gained 0.2 pts market share </li></ul></ul><ul><ul><ul><li>Corp. refresh not expected to start until 2H10 </li></ul></ul></ul><ul><ul><li>Progress in Q3 demonstrated the strength of our strategic priorities </li></ul></ul>Lenovo is the World’s Fastest Growing PC Manufacturer! Source: Industry and internal estimates Q3 09/10 Q2 09/10 Q1 09/10 Q4 08/09 Q3 08/09 Q2 08/09 Q1 08/09 70% Market 19% Commercial 10.5% Market 11.8% Consumer 13% Lenovo WW Market Share WW PC Growth Forecast (IDC) Transactional Mkt YTY Growth Q1 CY10 Q2 CY09 Q3 CY09 Q4 CY09 Q2 CY10 Q4 CY10 Q3 CY10 Q1 CY11 Q1 CY09 Q1 08/09 Q4 07/08 Q1 08/09 Q2 08/09 Q4 08/09 Q1 09/10 Q2 09/10 Q3 08/09 Q3 09/10
    10. 10. <ul><li>Growth in every geography world wide </li></ul><ul><ul><li>World wide year to year unit sales up 42% </li></ul></ul><ul><ul><li>Desktop shipments up 18% YTY & notebook shipments up 68% YTY </li></ul></ul><ul><ul><li>Overall market up to 9% </li></ul></ul><ul><ul><li>Mature Markets gained 0.2 pts market share </li></ul></ul><ul><ul><ul><li>Corp. refresh not expected to start until 2H10 </li></ul></ul></ul>Lenovo is the World’s Fastest Growing PC Manufacturer! Source: IDC and internal estimates Market share 0% WW PC Client Market Growth and Lenovo Share 2007 2009 2008 2010 Market growth Lenovo growth Lenovo share Industry 0% 10%
    11. 11. <ul><li>Growth in every geography, world wide </li></ul>Lenovo is the World’s Fastest Growing PC Manufacturer! <ul><ul><li>World wide year to year unit sales up 42% </li></ul></ul><ul><ul><ul><li>Industry grew just 17% </li></ul></ul></ul><ul><ul><li>Notebook shipments up 68% YTY </li></ul></ul><ul><ul><ul><li>Industry grew just 32% </li></ul></ul></ul><ul><ul><li>Desktop shipments up 18% YTY </li></ul></ul><ul><ul><ul><li>Industry lost 1% </li></ul></ul></ul><ul><li>Overall market up to 9% </li></ul><ul><ul><li>Grew market share for 3 rd straight quarter </li></ul></ul><ul><ul><li>Mature Markets gained 0.2 pts market share </li></ul></ul><ul><ul><ul><li>Corp. refresh not expected to start until 2H10 </li></ul></ul></ul>
    12. 12. Complete IT Solutions Through Offerings and Partnerships Software Image Management End-User Data Migration Connectivity Management Disaster Recovery Client Security Secure Data Disposal … . And more! Accidental Damage Protection Warranty Upgrades & Extensions Online Data Backup Hard-drive Retention Professional Services ThinkPlus Priority Support Asset Disposition … . And more! Imaging Services
    13. 13. Complete IT Solutions Through Offerings and Partnerships Image Ultra Builder System Migration Assistant Access Connections Rescue and Recovery Client Security Solution Secure Data Disposal … . And more! Accidental Damage Protection Warranty Upgrades & Extensions Online Data Backup Hard-drive Retention Professional Services ThinkPlus Priority Support Asset Disposition … . And more! Imaging Services
    14. 14. Award Winning Design From The ‘Innovation Triangle’ <ul><ul><li>Over 100 design awards and counting </li></ul></ul><ul><ul><li>6 IDEA Awards </li></ul></ul><ul><ul><li>19 iF awards for Good Design </li></ul></ul><ul><ul><li>47 G-Mark Awards in Japan </li></ul></ul><ul><ul><li>ThinkPad Design of the Decade, IDSA 2000 </li></ul></ul><ul><ul><li>ThinkPad 701C in permanent collection at MoMA </li></ul></ul><ul><ul><li>8 ‘Best of Show’ awards CES 2010 </li></ul></ul>Morrisville Yamato Beijing
    15. 15. Technology Leadership and an Expanding Portfolio All-in-One 24” Multi-touch W700 dual screen T410s X100e U1 Hybrid A300 Skylight Eco Ultra Small
    16. 16. Innovation Increases Quality, Reliability and Productivity
    17. 17. Lenovo Business Desktops Go All-In-One Greenest line of desktops in industry ($26 savings/yr) Most secure, better thermals, 20% quieter Can be run (and managed) as a Thin Client Significantly fewer repair actions than previous years Tool-less design: ‘car hood’ serviceability
    18. 18. Customers Demand and We Deliver Lower Failure Rates Warranty Claim Rate Warranty Claim Rate 2009 industry average* 2009 Lenovo 2004 IBM 2009 Lenovo 2004 IBM *A.J. Gold Research April 2009 41% reduction 46% reduction
    19. 19. The ThinkGreen Approach Energy Efficient Power Manager ENERGY STAR 5.0 Green Materials Post-consumer recycled plastic EPEAT Gold Packaging Reduction in packaging and pubs Bulk packaging Recycled content Product Stewardship Asset Recovery Service Consumer PC Recycling GREENGUARD Acoustic Quieter than ambient office noise Owl blade fans Ultra quiet Workstations
    20. 20. The ThinkGreen Approach 0 dB 22 dB
    21. 21. Bulk Packing Saves Time, Money and The Environment accessories in top layer
    22. 22. Lenovo Investments for Business Excellence <ul><li>We continue to invest in our future: </li></ul><ul><ul><li>Primary operations </li></ul></ul><ul><ul><li>Manufacturing </li></ul></ul><ul><ul><li>Supply chain </li></ul></ul><ul><ul><li>IT infrastructure </li></ul></ul><ul><li>We continue to improve our delivery capabilities </li></ul><ul><ul><li>Enhanced responsiveness for our customers </li></ul></ul><ul><ul><li>Customized web sites and product catalogues </li></ul></ul><ul><ul><li>Reliable order history, status and tracking </li></ul></ul>
    23. 23. Lean Six Sigma: Improvements in all Areas of Business <ul><li>Lean: Increasing customer value </li></ul><ul><ul><li>Eliminating process waste & cost </li></ul></ul><ul><ul><li>Attacking problems E2E </li></ul></ul><ul><li>Six Sigma: Improving quality through root cause analysis </li></ul><ul><ul><li>Reducing process variability </li></ul></ul><ul><ul><li>Attacking issues in-depth </li></ul></ul><ul><li>Driving process efficiencies </li></ul><ul><ul><li>Demand/supply forecasting </li></ul></ul><ul><ul><li>Complexity reduction </li></ul></ul><ul><ul><li>New global IT system </li></ul></ul><ul><li>ISO Certifications </li></ul><ul><ul><li>9001:2000 & 14001:2004 </li></ul></ul>
    24. 24. A Global Supply Chain to Meet All Your Needs <ul><ul><li>Extensive Global Supply Chain </li></ul></ul><ul><ul><li>9 Manufacturing locations </li></ul></ul><ul><ul><li>13 Fulfillment &/or Distribution Centers </li></ul></ul>Monterrey, Mexico Sacramento, CA U.S.A Beijing, China Sorocaba, Brazil Yamato, Japan Venlo, NL Caracas, Venezuela Bangalore, India Pondicherry, India Shanghai, China Kunshan, China Huiyang, China Shenzhen, China Sarvar, Hungary Bogota, Colombia Lima, Peru Buenos Aires, Argentina Matraville, Australia Mumbai, India Chengdu, China Whitsett, NC U.S.A Helsinki, Finland
    25. 25. A Global Service Parts Network to Reach All Customers <ul><ul><li>Parts network provides: </li></ul></ul><ul><ul><li>Next-day delivery </li></ul></ul><ul><ul><li>On-line order entry </li></ul></ul><ul><ul><li>Support for 175 countries from 465 locations </li></ul></ul>Mechanicsburg, PA Hub for North, Central and Latin America Canada 20 Locations United States 119 Locations Amsterdam Hub for Europe, Middle East & Africa Asia Pacific 96 Locations Caribbean 13 Locations Central America 7 Locations Latin America 42 Locations EMEA 168 Locations Tokyo Hub for Asia / Japan Singapore Hub for South East Asia
    26. 26. Continuous Improvements in Quality <ul><li>Rigorous quality standards </li></ul><ul><li>Exceptionally engineered PC’s </li></ul>FY 09/10 Consistently Strong Quality Defect Free <ul><li>Keys to ongoing success: </li></ul><ul><li>Maintain 100% supplier testing </li></ul><ul><li>Aggressive supplier audit program </li></ul><ul><li>Lean Six Sigma (LSS) focus and project execution </li></ul>
    27. 27. Continuous Improvements in Our Global Supply Chain <ul><li>Dependable </li></ul><ul><ul><li>Consistently execute to first committed date </li></ul></ul><ul><ul><li>Proactive communication </li></ul></ul><ul><li>Quick </li></ul><ul><ul><li>Industry standard cycle time </li></ul></ul><ul><ul><li>Order to receipt in 1-2 weeks </li></ul></ul>Page 4 of 13 3 Yr Trend: Continuous Improvement Lenovo’s internal target: 8 business days to delivery EoY <ul><li>Keys to ongoing success: </li></ul><ul><li>Improved materials management </li></ul><ul><li>Enhanced supply/demand forecasting </li></ul><ul><li>Applied LSS to drive speed/efficiency </li></ul><ul><li>Shortened manufacturing cycle time </li></ul><ul><li>Optimized logistics network </li></ul>
    28. 28. Lenovo’s Global Supply Chain 2009 Awards <ul><ul><ul><li>2009 Supply Chain Excellence of the Year Award </li></ul></ul></ul><ul><ul><ul><li>Supply Chain Executive of the Year: </li></ul></ul></ul><ul><ul><ul><ul><li>Gerry Smith, Senior Vice President Global Supply Chain </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Vendor Partner of the Year Award </li></ul></ul></ul></ul><ul><li>One of the world’s largest distributors of IT hardware & software honored Lenovo with their most prestigious award </li></ul>“ Lenovo and Tech Data created new marketing programs, strategically aligned resources and strengthened supply chain practices to successfully capitalize on the demand for the manufacturer’s desktops, notebooks, servers, tablets and workstations among small and medium businesses (SMBs) .” October 15, 2009
    29. 29. Lenovo is Outgrowing The Industry http://www.thestreet.com/_yahoo/story/10661437/1/in-the-pc-race-dell-fell-again.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA thestreet.com, January 14, 2010
    30. 30. Lenovo’s Segment Route Mix
    31. 31. Opportunity, Opportunity, Opportunity! 71 % Other
    32. 32. Some Customers Have Very Unique Demands
    33. 33. Some Customers Have Very Unique Demands
    34. 34. Lenovo’s Commitment to Our Customers <ul><li>Technology Leadership, Quality & Reliability </li></ul><ul><ul><li>Lowest industry failure rates </li></ul></ul><ul><ul><li>Best end-user experience </li></ul></ul><ul><li>Global Coverage: Fulfillment, Service & Support </li></ul><ul><ul><li>World class supply chain and parts availability </li></ul></ul><ul><ul><li>World class account management </li></ul></ul><ul><ul><li>Global Workhorse Models </li></ul></ul><ul><li>Ease of Doing Business - No two customers are exactly alike! </li></ul><ul><li>Execution on commitments – Ownership at all levels! </li></ul><ul><li>Comprehensive Solutions & Services </li></ul><ul><ul><li>Deliver a complete solution to our customers </li></ul></ul><ul><ul><li>Services to meet your business needs </li></ul></ul><ul><ul><li>Optimized to drive down operational costs </li></ul></ul>
    35. 35. Lenovo: More Than Just a PC Company

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