Presentation

DCG TRANSFORMED March 18, 2019 Kirk Skaugen EVP & President, Data Center Group

Data Center Market Landscape

DCG Vision and Transformation

Our Growth Strategy

Data Center M&A Activity

2017 2018 2019

1.AI / ML 1.AI / ML 1.AI / ML

2.IOT 2.IOT 2.Cloud

3.Big Data 3.Cloud 3.IOT

4.Cloud 4.Big Data 4.Converged IT

5.Converged IT 5.Converged IT 5.Big Data

Source: 451 Research, 2019 2019 Lenovo. All rights reserved. 3 2017 Lenovo 2019Internal. Lenovo All rights Internal. All rights reserved. reserved. PROPRIETARY HW GIVES WAY TO STANDARD HIGH VOLUME Conceptual view

>80% Share

1980 1990 2000 2010 Today 2020 ~2025 Price performance* >100,000x since 1980

Public Cloud

Private Cloud

New Product Branding

New Dedicated Sales & Marketing

New Dedicated Supply Chain & Quality

New Customer-Centric Segments

New Global Channel Programs

New Systems Integrator Relationships

New Leadership Team

Server, Storage, & Networking Solutions for the future-defined data center

Software-Defined Infrastructure

Engineered Solutions & Software

AI Big Data/Analytics Blockchain Cloud Database DevOps HPC Hyperscale IoT/Edge NFV Virtualization

Storage HPC/AI Servers Hyperscale Networking

IoT / Edge

Services: Solution Design, Implementation, Support, TruScale 2019 LenovoLenovo. Internal. All rights All reserved. rights reserved. 11 Industry Leading Performance for x86 Servers ~2X industry workload world records vs. the nearest competitor* 127

66 42

24 22 13 14 15 16 9

>750 CXO / IT SURVEYED IN >20 COUNTRIES 16% 16% Lenovo servers achieved the highest levels of “five nines” or 99.999% reliability among all 14% mainstream server hardware platforms 13%

Unplanned downtime 10% >4 Hours 7%

1% 3% 3% 2% 2% Lenovo System X Cisco UCS Fujitsu Primergy Dell PowerEdge HPE Proliant Oracle x86

Source ITIC 2016/2017 & ITIC 2017/2018 2019 Lenovo. All rights reserved. 2019 Lenovo.2019 Lenovo All rights Internal. reserved. All rights reserved. 14 PHONE SUPPORT PHONE SUPPORT INITIAL HARDWARE AVAILABILITY ON-SITE TECHNICAL TECHNICAL EXPERTISE QUALITY EXPERTISE MANAGEMENT TOTAL COST PERFORMANCE OF OWNERSHIP CAPABILITIES ONGOING HARDWARE ONLINE TECHNICAL RELIABILITY SUPPORT POST-PURCHASE VIRTUALIZATION, CUSTOMER CARE EFFICIENCY, SCALABILITY ON-SITE RESPONSE TIME

ONGOING SERVICES AND MAINTENANCE SOCIAL MEDIA SUPPORT

ONLINE PRODUCT 18 OF 22 ATTRIBUTES IN N. AMERICA INFORMATION DELIVERY TIME & 22 OF 22 ATTRIBUTES IN EMEA & APAC PRODUCT AVAILABILITY SELF-SUPPORT / AUTOMATED SUPPORT ONE-TIME SERVICES PURCHASE PRICE / SALES REPLACEMENT PARTS AND SETUP ACQUISITION COST RESPONSIVENESS AVAILABILITY LENOVO DCG RETAINS #1 POSITION IN CUSTOMER SATISFACTION FOR THE 9TH CONSECUTIVE TBR STUDY SINCE JANUARY 2015

31% 58% Revenue ($M) 68% 44% PTI ($M)

17% 16/17 16/17 16/17 16/17 17/18 17/18 17/18 17/18 18/19 18/19 18/19 -14% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -10% -10%

16/17 16/17 16/17 16/17 17/18 17/18 17/18 17/18 18/19 18/19 18/19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Server revenue: Premium to -22.5 -25.3 -35.3 -11.7 9.3 42.6 27.4 15.1 Market (pts)*

(Fiscal quarters)

2019 Lenovo.2019 Lenovo. All rights All reserved.rights reserved. *Source: IDC Server Tracker 4Q18 17 x86 server AUR* trends Market Lenovo $8,000

$7,500

$7,000

(Fiscal quarters) $6,500

$6,000

$5,500

$5,000

$4,500

$4,000

$3,500

(Fiscal quarters)

2019 Lenovo.2019 Lenovo. All rights All reserved.rights reserved. *Source: IDC Server Tracker 4Q18 18 Smart Infrastructure Market Outlook – by Geo

$151B

$121B 16% $113B China 5% Asia Pacific 4% Europe, Middle East, Africa 7% Latin America

North America 6%

2018 2019 2022 Infrastructure Spending (TAM)* ’18 - ’22 CAGR 8% 2019 Lenovo.2019 Lenovo. All rights All reserved.rights reserved. Source: Goldman Sachs, IDC, Gartner, Lenovo Analysis | *Infrastructure includes all x86 server, storage, and L2/3 DC Networking DCG Revenue Mix by Geo*

26% 31% PRC AP EMEA NA LA 14%

27%

$151B 11% $121B $113B 33% HPC/AI 12% + SERVICES (2022) OEM/IoT $350B** Telco 9% SW Defined/Hybrid Cloud -12% (2022) Traditional IT + SOFTWARE (DCI Server, Storage, Networking) $100B*** 13% Hyperscale

2018 2019 2022 Infrastructure Spending (TAM)* ’18 - ’22 Source: Goldman Sachs, IDC, Gartner, Lenovo Analysis CAGR *Infrastructure includes all x86 server, storage, and L2/3 DC Networking **Services includes Colocation, DC outsourcing, Systems Support, infr. 2019 Lenovo. All rights reserved. 2019 Lenovo. All rights reserved. And IaaS consulting, infr. implementation 8% ***SW includes O/S, VDI, Storage Mgmt, DataBase Mgmt,, #1 Provider Of Supercomputers In The World

140 OF THE TOP 500 (28%) +42 +56 GAP TO #1

-41 -35

-147 -182 NOV 2014 NOV 2015 NOV 2016 NOV 2017 JUN 2018 NOV 2018

2019 Lenovo.2019 Lenovo. All rights All reserved.rights reserved. 22 Lenovo

Lenovo: the recognized leader in liquid cooling technology

Holistic approach to liquid cooling

Energy usage optimization

Maximizing performance

BEIJING MORRISVILLE

TAIPEI

2019 Lenovo. All rights reserved. Datacenters are the most important computers in the world today, and in the future – as the workloads continue to change triggered by artificial intelligence, machine learning, data analytics and data sciences – future datacenters of all kinds will be built like high performance computers.

– Jensen Huang, Founder, President & CEO, Nvidia

ThinkSystem DM Series ThinkSystem DE Series

Global Support with Lenovo End-to-End Services

2019 Lenovo. All rights reserved. 2019 Lenovo. All rights reserved. Lenovo is a proven leader, and their ODM+ capabilities are truly unique in the industry. We chose to partner with them to deliver our ARM- based server platform in order to address the unique design, cost and performance requirements our cloud customers need. – Renee James, CEO and Chairman, Ampere

SDI YtY Growth vs. Market*

>2X for 7 Consecutive Quarters

Cloud Composable Composable

integrated integrated FY17/18 Q1 FY17/18 Q2 FY17/18 Q3 FY17/18 Q4 FY18/19 Q1 FY18/19 Q2 FY18/19 Q3

- Solutions

Market Lenovo Pre

$20B 2022 Opportunity Size

Industry CAGR (’18-’22)

Reference 19% Architectures

ThinkSystem SE530 – First of Many Differentiated Edge Server Offerings

VESA mount

DIN and Wall mount

Side by side in rack

“With this new scalable edge computing solution, the city’s security team can view any camera, regardless of brand across the city from a single location, which will greatly simplify operations.” —Rafael Padilla, The City of Bogotá selected the Pivot3-Lenovo Safe City solution to simplify the Systems Integrator, City management of 5,000 surveillance cameras across 18 boroughs, increasing its of Bogotá Safe City situational awareness and the ability to monitor and respond to incidents. Project

“The Scale Computing HC3 software, in combination with Lenovo servers and switches, delivered the stability, support and simplicity we needed. The solution outclassed competition on total cost of ownership and simplicity.”

—Rolf Vanden Eynde Head of Infrastructure HC3 Edge solution on Lenovo replaced thousands of traditional server deployments Innovation Planning Delhaize (Part of the Ahold Delhaize Group)

DCG is Investing •Custom, telco-hardened hardware platforms •Multi-Access Edge computing solutions •NFV IP and solutions •Growing partner ecosystem •Multiple active engagements

2019 Lenovo.2019 Lenovo. All rights All reserved.rights reserved. Source: IDC, Gartner, Lenovo 28 Lenovo TruScale Infrastructure Services

Minimal Upfront Costs Fixed monthly cost

On-Prem Security & Control Control the environment

Reduced Risk No commitment - Fast time to value ORGANIZATION’S PREFERENCE FOR FUNDING IT INFRASTRUCTURE SYSTEMS AND/OR SOFTWARE

PREFERENCE FOR CAPITAL Flexibility & Scalability 39% Pay for use - Easy to scale EXPENDITURES (CAPEX)

EQUAL PREFERENCE FOR 31% Full Maintenance, Support OPEX AND CAPEX & Management PREFERENCE FOR OPERATING 30% EXPENDITURES (OPEX)

• DCG has transformed

• Strong leadership team

• Sustained track record of exceeding market growth

• Innovation engine alive and well

• Investing for the future