Dell International

Business Strategy
Conference Call
October 16, 2006

Paul Bell, President EMEA

Steve Felice, President APJ

www.dell.com/investor © Dell Inc. 2006

 Special Note
• Statements in this presentation that relate to future results and events (including statements about Dell’s anticipated financial and
operating performance) are based on Dell’s current expectations.
• Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and
uncertainties, including:
¾ General economic, business and industry conditions
¾ The level and intensity of competition in the technology industry and the pricing pressures that have resulted
¾ The outcome of the SEC and Dell Audit Committee investigations into certain accounting and financial reporting matters,
including issues relating to accruals, reserves and other balance sheet items that may affect the company’s previously
reported financial results, and the impact of any restatement of financial statements or other actions that may be taken or
required as a result of such investigations
¾ Dell's inability to meet NASDAQ requirements for continued listing as a result of its delayed quarterly report filing
¾ Litigation and governmental investigations or proceedings arising out of or related to such accounting and financial reporting
matters, or any restatement of Dell's financial statements
¾ Local economic and labor conditions, political instability, unexpected regulatory changes, trade protection measures, tax laws
and fluctuations in foreign currency exchange rates
¾ The ability to accurately predict product, customer and geographic sales mix
¾ The ability to timely and effectively manage periodic product transitions
¾ Reliance on third-party suppliers for product components, including dependence on several single-source supplier
relationships
¾ The ability to effectively manage operating costs
¾ The ability to attract and retain qualified personnel
¾ The level of demand for the products and services Dell offers
¾ The ability to manage inventory levels to minimize excess inventory, declining inventory values and obsolescence
¾ The effect of armed hostilities, terrorism, natural disasters and public health issues on the global economy generally, on the
level of demand for Dell's products and services and on Dell's ability to manage its supply and delivery logistics in such an
environment
• More information about these and other factors affecting Dell's business and prospects is contained in Dell's periodic filings with the
SEC.
IR
2 © Dell Inc. 2006
 Agenda

• Introduction
¾Lynn A. Tyson, VP IR & Global Corporate
Communications
• Europe, Middle East, Africa
¾Paul Bell, President EMEA
• Asia-Pacific / Japan
¾Steve Felice, President APJ
• Question & Answer

IR
3 © Dell Inc. 2006
 Dell Has Significant Growth Potential Outside the U.S.

70%
70%of
ofglobal
globalIT
ITspending
spendingis
isoutside
outsideof
ofthe
theUnited
UnitedStates
States

Dell FY07 Q2 Revenue Mix

• Only 4% share of $1.3 trillion
global IT market and 7%
share of $770B addressable
IT market
21%
EMEA • # 1 worldwide PC/x86 share
58%
U.S. 14% of 19%
APJ
• # 2 outside the U.S. with only
7% 13% share
Amer
Int’l • Non-U.S. 3 year revenue
CAGR of 22%

Dell FY07 Q2 U.K. France Canada Brazil Russia India China

3 Year CAGR 20% 22% 21% 44% 66% 51% 29%
Source: IDC Worldwide Quarterly PC Tracker, Sept. 2006 and Company Estimates
IR
4 © Dell Inc. 2006
 International Business is Key Component
of Long-Term Growth Goals
Projected Industry PC/x86 Unit Growth
through 2010 indexed for Dell Share
50%

Developing Regions
Unit Size
40
US and
Dell CYQ2'06 Share

Mature Regions
Canada Unit Size
30

20
West Europe 20M
Japan
Units
10 APAC Latin
ex-Japan EMEA America
ex-Western
Europe
0
0 5 10 15 20%

Projected 5-Year CAGR

• Developing regions represent largest opportunity to build share
• Expand enterprise, services and S&P
• International investments will scale over time
Source: IDC Worldwide Quarterly PC Tracker, Sept. 2006 and Company Estimates
IR
5 © Dell Inc. 2006
 Adapting Our Value Proposition to Grow Globally

Dell’s strategy
Dell’s strategytailored
tailoredto
todeveloping
developingand
andmature
maturecountries
countries

Value Proposition Mature Countries Developing Countries

Brand • Direct model • Global premium vs. local/white box

Segment Focus • Strong share in all segments • Largest addressable profit pools
Products • Performance and price • Best quality, lead with enterprise
Mfg & Supply Chain • Most efficient BTO, JIT inventory • Build close to the customer
Marketing & Sales • Direct to customer and growing • Build Direct relationships while
custom solutions being flexible to local practices
Service & Support • Best CE and expanding • Build and evolve leading service
commercial services model

IR
6 © Dell Inc. 2006
 Extending Strength in Core Business to Growth
Opportunities in Europe, Middle East, and Africa

Western Europe
18% Share

Central / East Europe

4% Share

Africa Middle East • Began operations in 1987

10% Share
Enterprise Command Centers
Manufacturing Facilities
Customer Contact Centers
Regional Offices
9% Share
• Headquartered in Bracknell, U.K.
• 17,000 employees across region
• #2 in total share position at 14%
• 1 Manufacturing Center in Ireland with
Poland to be operational in FY ‘08
• 1 Enterprise Command Center

Source: IDC Worldwide Quarterly PC Tracker, Sept. 2006 and Company Estimates
IR
7 © Dell Inc. 2006
 Consistent & Balanced Growth Across
Europe, Middle East, and Africa
PC/x86 Share in EMEA

Maturing Developing
30% #1
#1 • Growing share across regions
25% and countries
¾ Combined EMEA share of 14%,
20%
up from 8% just 5 years ago
#2
15% ¾ Western Europe 18% share,
#3 with 43% share in large
corporate accounts
10% #2
#4
#3 ¾ Only 7% share in EMEA ex-
Q2 CY06

5% #4 Western Europe
CY00

0%
UK Holland France Germany Italy Cen/East Mid East So Afr
Q2 ‘07 Eur
Growth 4% 8% 0% 5% 6% 26% 19% 33%
Premium*
* Dell growth in excess of the industry ex Dell
Note: All growth rates and share gains are Y/Y unless otherwise stated IR
Source: IDC Worldwide Quarterly PC Tracker, Sept. 2006 and Company Estimates 8 © Dell Inc. 2006
 Fully Developed & Evolved Operations
in Asia Pacific and Japan

• Began operations in 1993

• Headquartered in Singapore
• 12,000 employees across region

China/HK • #2 in total share position at 11%

10% Share
Japan • 3 Manufacturing Centers
16% Share
• 3 Enterprise Command Centers
Korea
6% Share

South Asia
7% Share

Australia /
New Zealand
16% Share
Enterprise Command Centers
Design Centers
Manufacturing Facilities
Customer Contact Centers
Regional Offices

Source: IDC Worldwide Quarterly PC Tracker, Sept. 2006 and Company Estimates
IR
9 © Dell Inc. 2006
 Consistent & Balanced Growth Across
Asia Pacific and Japan

PC/x86 Share in Top 5 Asian Countries

#2 #2
16%

• Gained share across nearly all

12% countries last quarter
#3 ¾ Top 5 countries represent almost
85% of the region
8% #4 ¾ Combined share of 12%, up from
#6 5% just 5 years ago
¾ Combined growth multiple of 2.3x
Q2 CY06

4%
the industry ex Dell
CY00

0%
A us t / N Z J a pa n C hina / H K India S Ko re a
Q2 ‘07
Growth 21% 20% 12% 66% 14%
Premium*
* Dell growth in excess of the industry ex Dell
Note: All growth rates and share gains are Y/Y unless otherwise stated IR
Source: IDC Worldwide Quarterly PC Tracker, Sept. 2006 and Company Estimates 10 © Dell Inc. 2006
 Diversified Portfolio Not Reliant On Any One Country

No
No other
other vendor
vendor has
has experienced
experienced the
the same
same balanced
balanced growth
growth

Total
Total APJ
APJ Japan
Japan China
China// HK
HK
Q2 Unit Q2 Q2 Unit Q2 Q2 Unit Q2
Growth Share Growth Share Growth Share
Lenovo 23% 17% NEC -2% 20% Lenovo 30% 35%
DELL 27% 11% DELL 15% 16% Founder 35% 13%
HP 13% 11% F-S 16% DELL 37% 10%
Founder 35% 5% Toshiba 9% HP 23% 8%
NEC -3% 5% Sony 7% Tongfang 6%

Australia
Australia // NZ
NZ India
India ASEAN
ASEAN Countries
Countries
Q2 Unit Q2 Q2 Unit Q2 Q2 Unit Q2
Growth Share Growth Share Growth Share
HP 6% 22% HP 49% 20% Acer 15%
DELL 20% 16% HCL 14% HP 5% 15%
Acer 12% Lenovo 44% 9% DELL 16% 10%
Toshiba 8% DELL 82% 7% Lenovo 8% 6%
Lenovo -22% 6% Acer 5% Toshiba 4%

Source: IDC Worldwide Quarterly PC Tracker, Sept. 2006 and Company Estimates
ASEAN Countries = Brunei, Cambodia, Indonesia, Laos, IR
11 Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam © Dell Inc. 2006
 China Remains the Largest Opportunity

Dell’s Share of Total • Proven the Model works in China

PC/x86 Units ¾ Launched Direct 8 yrs ago - gained share
#3 every year
10%
¾ Grew revenues almost 30% annualized
8% over last 4 years
¾ Expanding reach to additional cities
6%
• Grew revenues 31% in Q2, >2B run rate
4%
¾ Unit growth of 37%, #3 in share at 10.3%
2% ¾ #1 server vendor with 26% share
¾ SMB is the fastest growing segment - Dell
0%
is #2
2002 2003 2004 2005 Q2 '06

Note: All growth rates and share gains are Y/Y unless otherwise stated IR
Source: IDC Worldwide Quarterly PC Tracker, Sept. 2006 and Company Estimates 12 © Dell Inc. 2006
 Making Investments for Growth in India

Dell’s Share of Total

PC/x86 Units • One of the fastest growing countries in the
8% world
#4
¾ Expected to grow 25%+ annually long term
6%
• Dell growing rapidly with further
opportunity to accelerate growth
4%
¾ Revenues up >40% annually over last 4 yrs
2%
¾ Units up 82% last qtr, gained 2 pts of share

¾ #1 in Large Corporate with 46% share

0%
2002 2003 2004 2005 Q2 '06

India growth strategy

• Building new factory to be operational early next year
• Building out sales capabilities & building brand
• Expanding Product & Services portfolio
Note: All growth rates and share gains are Y/Y unless otherwise stated IR
Source: IDC Worldwide Quarterly PC Tracker, Sept. 2006 and Company Estimates 13 © Dell Inc. 2006
 Summary

• International customers are embracing direct relationships

with Dell

• We are investing to fully develop our capabilities and capture

profitable expansion overseas

• Our consistent, balanced and quality growth across our non-

US regions is unmatched in the industry

IR
14 © Dell Inc. 2006
 Question & Answer

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 Visit www.dell.com/investor for
additional information

www.dell.com/investor © Dell Inc. 2006