Let’s Break New Ground Together. Credit Partnering for Future Business Success Together George Wijntjes Microsoft | EMEA Channel Partner Conference 2014 Agenda • • • • • • General Economic growth outlook 2014-2015 Supporting data (CDS) IMF view Lets have the discussions early Key Credit Services activities Where do you go for help Microsoft | EMEA Channel Partner Conference 2014 Economic growth forecast 2014-2015 *IMF source Jan 2014 Economic growth forecast overview Years/Areas 2012 Germany UK France Italy Spain CEE Russia MEA and Northern Africa South Africa Sub Saharan Africa 0.90 -0.20 0.20 -2.10 -1.40 1.80 3.60 5.20 2.30 4.80 Global Euro Area Emerging/Developing markets USA China Latam (ex brazil) 3.20 -0.40 4.90 2.30 7.70 3.00 in % 2014 2013 last year 0.60 1.40 1.00 1.90 0.30 0.90 -1.00 0.50 -1.50 0.80 2.40 3.10 3.70 3.80 3.40 3.80 2.80 4.10 5.80 5.70 3.50 -0.20 4.70 1.90 7.70 2.60 4.10 1.00 5.10 3.00 7.50 3.10 2014 Now 2015 1.60 2.40 0.90 0.60 0.60 2.80 2.00 3.30 2.80 6.10 1.40 2.20 1.50 1.10 0.80 3.10 2.50 4.80 3.30 5.80 3.70 1.00 5.10 2.80 7.50 3.00 3.90 1.40 5.40 3.00 7.30 3.30 Microsoft | EMEA Channel Partner Conference 2014 5 year CDS (Credit Default Swaps) 5y CDS Hungary Croatia Romania Bulgaria Ukraine Greece S.Africa Egypt Pakistan Spain Italy Kazakhstan 2/14/2013 2/13/2014 % change 292 280 205 105 582 4143 168 555 764 258 239 148 265 338 180 122 1197 520 228 475 777 139 166 190 -9.25% 20.71% -12.20% 16.19% 105.67% -87.45% 35.71% -14.41% 1.70% -46.12% -30.54% 28.38% *These are basis points and 1 basis point = 0.01% so on February 2014 the cost for Hungary for a 5 year CDS is 2.65 % vs 2.92 on Feb 2013. The cost for Greece has dropped from 41.43 % to 5.2% showing that the risk has continued to decrease significantly. By the end of 2007, the outstanding CDS amount was $62.2 trillion, falling to $26.3 trillion by mid-year 2010 and reportedly $24.3 trillion in June 2013 (BIS.org) Microsoft | EMEA Channel Partner Conference 2014 Bigger picture 2014 Microsoft | EMEA Channel Partner Conference 2014 Let’s have the conversation(s) early !! • Engagement • New sales programs/models • New revenue streams means potential new challenges • Challenges & Opportunities • • • Unexpected events Unexpected opportunities Market Dynamics Microsoft | EMEA Channel Partner Conference 2014 Key Credit Services activities and expectations What do we do Credit lines What can you expect An annual review of your credit worthiness An annual follow-up on securities renewal Exceptional negotiations Ad hoc credit requests: special tenders Timely review of requirements and & complex deals decision making What we require from you The complete set of annual audited financial statements Potential Outcome Positive Potential Outcome Negative Credit line No Credit/on hold/reduced credit Extra credit or extra terms Rejection of the request Renewal of, or New Securities Credit line estimation, proposed payment shedules Crisis management Cash flow challenges Massive Currency fluctuations Review of financial situation, potential Up to date financials payment plans Continuous review with the Subsidiary Work with the sub on your on Impact and potential mitigations cases Payment plan with On Hold prepayment arrangement Special country related Only mitigation for programs specific deals Input to other programs Rebates A fair evaluation of compliance achieved Payment compliance WWCS doesn't issue or process orders/invoices Microsoft | EMEA Channel Partner Conference 2014 Where do you go for help • CEE /MEA • Dympna Grady CEE/MEA • George Wijntjes (Russia, Multi country + Global ) • John Gargan (cluster 2) • Jachindra Mohanty (MEA) • Mohamed Fouad (MEA) • UK • Paddy O'Donoghue • Spain/Portugal/Italy/Benelux • Jesus Del Pozo Moran • France • Renaud Sandoz • Alps/Nordics/Ireland • Leea Hagelin • Germany • Gilda Dumontier • Regional Director • Kostas Bikos Microsoft | EMEA Channel Partner Conference 2014 Let’s Break New Ground Together. Provide your feedback on the sessions through the Conference App and be eligible to win one of five Nokia Windows Phone 8 ALL Partners who provide feedback through the Conference App will receive a one year subscription to Office 365 Home Premium Visit the Conference App now at partnerconferenceapp.com Microsoft | EMEA Channel Partner Conference 2014 Thank you. © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentations. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT CONFIDENTIAL – FOR PARTNER USE ONLY. 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