a $20b+ global personal technology company

2 ••© 2011 Lenovo Confidential. All rights reserved.

A $20B+ global personal

technology company

with 30,000 people and

customers in 160+ countries.

Lenovo is…


Expanded Presence in Global Markets

Worldwide PC Market Share

Emerging Markets Lead over HP has grown to 6pts in last 3 Quarters

Worldwide Commercial Reached 18.4% share, overtaking HP

Consumer Desktop Passed HP to take over #1

#2

#1

#1

#1


Fastest growing for 9th straight quarter

Record highs in market share, shipments, revenue and PTI

Closing gap with #1 position to just 2 points

Lenovo #2 in the world, closing gap on #1 position

Source: IDC and Internal Data

8.4

10.2 10.4 10.2 9.9

12.2

13.5 14.0

37%

0%

-2

0

2

4

6

8

10

12

14

16

-10

0

10

20

30

40

50

60

70

Q4 09/10 Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11 Q1 11/12 Q2 11/12 Q3 11/12

13

55

77

100

42

109

144 153

0

20

40

60

80

100

120

140

160

180

200

Q4 09/10

Q1 10/11

Q2 10/11

Q3 10/11

Q4 10/11

Q1 11/12

Q2 11/12

Q3 11/12

Lenovo Net Earnings (US$M) Lenovo WW Market Share and PC

Shipment YTY Growth (%)

Market

Lenovo Closes Gap on WW Market Share (%)

0

5

10

15

20

Q4 09/10 Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11 Q1 11/12 Q2 11/12 Q3 11/12

ASUS

2.2 pts

10.4 pts

What contributed to Lenovo’s

continuous solid growth?


Extended lead vs. competitors in world‟s largest PC market

Achieved record market share of 35.3%

Improved PC operating profit by 57% YTY

Protect China Leadership

0

10

20

30

40

50

60

70

Q4 09/10 Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11 Q1 11/12 Q2 11/12 Q3 11/12

Market

Lenovo China Shipment YTY Growth (%)

28%

17%


0

50

100

150

200

Q3 10/11 Q4 10/11 Q1 11/12 Q2 11/12 Q3 11/12

China PC Segment Operating Profit (US$M)

103 112

164

176

166

5.3%

5.7%

9.4%

9.5%

35.3%

0% 10% 20% 30% 40%

HP

Asus

Dell

Acer*

Lenovo

Lenovo vs. Top Competitors, Q3 Share (%)

*Includes Founder


20

37 39 39

76

95

109

0

20

40

60

80

100

120

Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11 Q1 11/12 Q2 11/12 Q3 11/12

More than doubled operating profit YTY

Record high market share of 9.4%, up 4.2 points YTY

Successful integrations of NEC and Medion

Mature Markets: Protect Relationship / Attack Transactional


MM Segment Operating Profit (US$M)

+17.0

+2.5

+3.8

-0.2

7.5%

8.5%

24.1%

8.2%

9.4%

NA

WE

Japan

ANZ

Mature

Mature Market Geo Share/YTY Growth (%)

+4.2


Grew more than 5x the market

Share outside China grew 1.2 points YTY

Strengthened #1 position in Global Emerging Markets

Gained 3.4 points in India, 1 point in Russia

Attack Emerging Markets


0

25

50

Q3 10/11 Q4 10/11 Q1 11/12 Q2 11/12 Q3 11/12

Lenovo EM Shipment YTY Growth (%) Lenovo Share Gains in All EM Regions

+1.2

+1.4

+1.5

+2.2

+1.7

Q3 Shares (%) Share Gains YTY (pts)

+3.4

7.8%

9.9%

5.7%

7.7%

13.7%

8.3%

6.8%

4.5%

7.9%

EM

RUCIS

MEA

LAS

India

HTK

EET

Brazil

ASEAN +0.4

- 1.0

+0.9

23%

4% Market


Execution of Strategy Continues to Drive Growth

What are Lenovo’s next steps?


Technology Revolution Drives Up Convergence

WiFi/ 3G/ 4G

SoC

Touch Panel

HTML 5

Tablet Ultrabook

Traditional TV

Personal Computer

Feature Phone

Smartphone Smart TV


Our Beliefs in the Convergence Era

HW Cloud

Soft ware

Smart devices to offer the best

user experience, integrating HW,

SW & cloud service

One customer,

multiple

smart devices

12


End users will…

Select suitable gear based on environment and purpose

Demand almost the same contents from each gear

Expect comparable experiences with different interface/performance

Desire continuous workflow and gapless transition between devices

6 AM 9 AM 5 PM 7 PM

Study or office Living room Bus Bus

9 PM

Bedroom Sleeping

Smart Services push/download,

backup/sync, security scan

Opportunities and Challenges Created by the Coexistence of Smart Devices


Lenovo Four Screen Strategy

SUB POINT

PC

TABLETS

SMARTPHONES

LENOVO

CLOUD

Drive Monetizaton Utilizing the Cloud to create

new forms of “monetization”

TV

Deploy Cross All Plattforms „One Lenovo Cloud‟ deployed across all platforms:

乐云（Lenovo Cloud）


乐云（Lenovo Cloud）

乐Pad 乐Phone

Cloud Ready PC 乐TV

乐终端

乐Magic

Optimized UE, integrated core apps

OS

Compatibility with mainstream OS

8

H/W

Products cover all market segments

Lenovo Store

Content mgmt Interconnectivity Social sharing

Lenovo Personal Cloud Platform


Smartphone sales grew over 400% QTQ in China, double-digit share

in December.

Tablets: Dominating Android-based player in China

− 51.9% Android-based market share; 16.5% overall, strong #2 in China

Smart TV leads slate of new, innovative products coming to market

Solid MIDH Roll Out in China

A60 IdeaTablet S2110A Smart TV IdeaPad Yoga


Innovations Bring Opportunities

IdeaCentre A720 IdeaPad YOGA


Lenovo won 23 awards, more than next 5 competitors combined

CES Success Demonstrates Lenovo’s Innovation Capability

Lenovo beats Apple to

unveil smart television


New Ideas and New Products Yield New Opportunities

Core Business

New Acquisitions & JVs

New Technologies

New Usage Models

New Ecosystems


Lenovo: Next Gen Global Tech Co

Next

Generation

Global

Technology

Company

Core PC

China

- Extend PC share lead

- Increase profitability

- Grow Server &

Workstation

Mature Market

- Unique commercial

exposure

- Expand consumer

business presence

Emerging Market

- Get 10%+ share in key

countries

- Expand profitability

Four-screen Strategy

MIDH

Lenovo Cloud


About LENOVO

Incorporated in Hong Kong in 1988

Listed on The Stock Exchange of Hong Kong since February 1994 (HKSE: 992)

Issued Level I American Depositary Receipts (ADRs) in March 1995 (ADR: LNVGY)

The world‟s 2th largest PC vendor with customers in over 160 countries

Fortune Global 500 company

Product lines include legendary Think-branded commercial PCs and Idea-branded consumer PCs, servers,

workstations, and a family of mobile internet devices, including smartphones, tablets, Smart TV, etc.

Major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina, US.

a $20b+ global personal technology company

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