Dell Global Data (1)

Dell Inc.

Dell Inc.- Financial and Strategic Analysis Review

Reference Code: GDTC40286FSA

Dell Inc. - Financial and Strategic Analysis Review Publication Date: 10-Jan-2013


Company Snapshot Key InformationDell Inc., Key InformationWeb Address www.dell.comFinancial year-end FebruaryNumber of Employees 106,700NASD DELLSource : GlobalData

Key RatiosDell Inc., Key Ratios

P/E 5.72

Return on Equity (%) 39.16

Debt/Equity (%) 103.78

Operating profit margin (%) 7.14

Dividend Yield NA

Note: Above ratios are based on share price as of 08-Jan-2013

Source : GlobalData

Share DataDell Inc., Share DataShare Price (USD) as on08-Jan-2013 10.77

EPS (USD) 1.88

Market Cap (million USD) 1,871

Enterprise Value (million USD) 16,774

Shares Outstanding (million) 1,737

Source : GlobalData

Performance ChartDell Inc., Performance Chart (2008 - 2012)

Source : GlobalData

Company Overview Dell Inc. (Dell) is an international provider of desktoppersonal computers, software and peripherals. Thecompany designs, develops, manufactures, markets, andsupports information technology systems. It also servicesprinters, servers, and other related products. Thecompany's product portfolio includes laptops, desktops,workstations, storage devices and printers. Dell alsoprovides a range of consulting services to enhance theenergy efficiency of data centers such as capacityplanning, data center optimization assessments,virtualization and energy efficiency research for maximizingvalue.

SWOT Analysis Dell Inc., SWOT Analysis

Strengths Weaknesses Increasing OperationalEfficiency

Focused ChannelsOperations

Strong Product Portfolio

Litigations

Limited Liquidity

Opportunities Threats Growing Cloud ComputingMarkets

IT Market Outlook

Strategic Acquisitions

Foreign Currency Fluctuations

Rapid Technological Changes

Intense Competition

Source : GlobalData

Financial Performance The company reported revenues of (U.S. Dollars) USD62,071.00 million during the fiscal year ended February2012, an increase of 0.94% over 2011. The operatingprofit of the company was USD 4,431.00 million duringthe fiscal year 2012, an increase of 26.42% over 2011.The net profit of the company was USD 3,492.00 millionduring the fiscal year 2012, an increase of 32.52% over2011.

Dell Inc.



Dell Inc. - Key FactsDell Inc., Key FactsCorporate Address One Dell Way, Round Rock, TX,

78682, United StatesTicker Symbol, StockExchange

DELL [NASDAQ]

Telephone +1 800 2893355 No. of Employees 106,700

Fax Fiscal Year End February

URL www.dell.com Revenue (in USD Million) 62071.00

Industry Clean Technology, Retailing,Technology andTelecommunication

Locations Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, Canada, Chile, China, Costa Rica, Denmark,Finland, France, Germany, Greece, Hungary, India, Indonesia, Ireland, Italy, Japan, Malaysia, Mexico,Panama, Philippines, Poland, Republic of Korea, Romania, Singapore, Spain, Sweden, Switzerland,Taiwan, Thailand, United Kingdom, United States, Vietnam

Source : GlobalData

Dell Inc.



Dell Inc. - Business Description Dell Inc. (Dell) is a US-based hardware device provider. The company provides desktops and laptops in the US andEurope. The company provides a wide range of advanced technology systems and services, along with the industry'sgreenest desktops and notebooks. It has a worldwide portfolio of numerous patents and several other patent and trademarkpending applications. Dell is also certified by the International Standards Organization for its design, manufacture andservice of computer products across the world. The company sells its products and services through select retailers andthird-party value-added resellers. It retails its merchandise directly to customers through telephone orders and website. Dell organizes its business into four segments, namely, Large Enterprise, Public, Small and Medium businesses andConsumer. The Large Enterprise business segment provides IT infrastructure and solutions to large global and national corporatebusinesses. The company, through this segment, delivers innovative solutions and services through data center and cloudcomputing solutions. For the fiscal year ended February 2012, the Large Enterprise segment generated revenue of$18,457m, as compared to $17,813m in the previous year. This segment accounted for 30% of the company's totalrevenue in fiscal year 2012. The Public business segment provides a a broad range of unique IT requirements to customers in educational institutions,government, health care, and law enforcement agencies. For the fiscal year ended February 2012, the Public businesssegment generated revenue of $16,548m, as compared to $16,851m in the previous year. This segment accounted for27% of the company's total revenue in fiscal year 2012. The Small and Medium business segment focuses on small and medium business-related solutions and technology. Forthe fiscal year ended February 2012, the Small and Medium business segment generated revenue of $16,548m, ascompared to $14,473m in the previous year. This segment accounted for 24% of the company's total revenue in fiscal year2012. The Consumer business segment focuses on delivering the customers requirements from the total technology experienceof entertainment, mobility, gaming, and design. For the fiscal year ended February 2012, the Consumer business segmentgenerated revenue of $11,900m, as compared to $12,357m in the previous year. This segment accounted for 19% of thecompany's total revenue in fiscal year 2012. The company classifies its offerings into several product lines, including desktop computer systems, mobility products,software and peripherals, servers and networking products and storage products. The company offers a wide variety of mobility and desktop products, including notebooks, workstations, tablets,smartphones, and desktop PCs, to its commercial and consumer customers. The company’s desktop computer systemsinclude desktops of several designs for various customer segments. Its various lines of desktops include Inspiron, XPS,Alienware Vostro, OptiPlex and Precision. The XPS and Alienware lines have multimedia capability for providing thehighest gaming performance. The OptiPlex line is designed for business, government and institutional customers tomanage their total cost of ownership by offering a portfolio of secure, manageable and stable lifecycle products. TheInspiron line of desktop computers is designed for mainstream PC users, requiring the latest features for their productivityand entertainment needs and Vostro line is designed to provide technology and services to suit the specific needs of smallbusinesses. The company’s mobility product line includes innovative systems that are elegant, sleek, thin and light weight. Its productline includes XPS, Alienware, Latitude, Inspiron and VostroT lines of laptop computers. It also offers handhelds and MP3players. The Precision line of mobile workstation products is developed for advanced applications and exceptionalperformance. For the fiscal year ended February 3, 2012, the Client product and service category (including mobility anddesktop PCs) reported revenue of $33,248m, indicating a decrease of 1.21% over revenue in 2011. It accounted for51.97% of the company’s total revenue in 2011. The company’s software and peripherals product line offers Dell-branded printers, displays and other third-party peripheralproducts such as software titles, printers, televisions, laptop accessories, networking and wireless products, digitalcameras, power adapters, scanners and other products. The company offers products from software publishers, throughASAP Software Express Inc., a software solutions and licensing services provider. Dell also provides a wide variety ofbranded and non-branded display products, including flat panel monitors and projectors. For the fiscal year endedFebruary 3, 2012, the software and peripherals product line reported revenue of $10,222m, showing a decrease of 0.38%over revenue in 2011. This accounted for 15.98% of the company’s total revenue in 2011.

Dell Inc.



The company’s servers and networking product line provides networking products and servers. The PowerEdge line ofservers is designed to provide its customers the scalability and its options include rack, blade and tower servers forenterprise customers, small organizations, networks and remote offices. Dell’s PowerConnect switches are used to connectcomputers and servers in small-to-medium-sized networks. PowerConnect products offer enterprise-class features andcustomized Dell server solutions for very large data center customers. The company’s storage product and services product line offers an all-inclusive portfolio of advanced storage solutionssuch as storage area networks, network-attached storage, direct-attached storage, disk and tape backup systems andremovable disk backup. Its product line includes PowerVault, EqualLogic and DX Object storage, which enable businessesto optimize storage for varied environments with diverse requirements. The company’s services include infrastructure consulting services, deployment services, asset recovery and recyclingservices, IT outsourcing, consulting, applications development, applications maintenance, and business process services. Itgroups its services into three categories, namely, transactional, outsourcing, and project-based. From fiscal 2013, thecompany will classify its services as support and deployment services, infrastructure, cloud, and security services, andapplications and business process services. For the fiscal year ended February 3, 2012, the Enterprise Solutions andServices product line reported revenue of $20,501m, indicating an increase of 16.64% over revenue in 2011. It accountedfor 32.05% of the company’s total revenue in 2011. Geographically, the company categorizes its business operations into two regions, namely, United States and Foreigncountries. For the fiscal year ended February 2012, United States contributed 49.0% of the company's total revenue,followed by Foreign countries with 51.0%. In July 2012Dell and Quest Software entered into a definitive agreement for Dell to acquire Quest, an IT management softwareprovider. The Quest Software acquisition provides various components to expand Dell’s software capabilities in security,systems management, data protection and workspace management. In June 2012,the company expanded its XPS laptop portfolio with the XPS 14 and XPS 15 laptops. In the same month, Dell was awardedan order under the General Services Administration (GSA) Alliant Government Wide Acquisition Contract (GWAC) by theNational Institute of Allergy and Infectious Diseases (NIAID), under which Dell will provide support services to the Institute’sdomestic and international users which include biomedical researchers, managers and administrative staff. During thesame period, National Institutes of Health Information Technology Acquisition and Assessment Center (NITAAC) selectedDell as one of the awardees of the Chief Information Officer – Solution and Partners 3 (CIO-SP3) contract. In May 2012Dell acquired Wyse Technology, a leading company in cloud client computing. With this acquisition, the companyexpanded its desktop virtualization offering that enable it to offer range of IT solutions for its customers and partners. In thesame month, the company expanded its Dell Cloud Business Applications portfolio by introducing Dell Integration Packs,an integration solution for growing businesses that enables automatic synchronization of critical data between popularsoftware applications. The company opened its New York solution center, a global network of solution centers that enableits customers to explore, test and deploy solutions for building IT infrastructures. Dell completed its acquisition ofSonicWALL, Inc., a leading company in advanced network security, secure remote access, email security, backup andrecovery, and management and reporting. With SonicWALL acquisition, the company expanded its security software andservices portfolio. Dell and Red Hat, Inc., the leading provider of open source solutions, signed an agreement to produceDell and Red Hat hardware/software solutions for IT manufacturers worldwide. In April 2012, Dell designed a partnership program Emerging Solutions Ecosystem, to accelerate cloud computing deployments. Thecompany entered into an agreement with EdgeCast Networks and Elemental Technologies to make content production anddelivery networks more attainable for service providers. It acquired Clerity Solutions, a global provider of applicationsmodernization and re-hosting solutions and services. It also signed a definitive agreement to acquire Make Technologies, aleading global provider of application modernization software and services. The company's acquisition of MakeTechnologies and Clerity Solutions to Dell Services allow the company to modernize its applications portfolios. In March 2012, oneworld, a global airline alliance, implemented a new information technology (IT) hub based on Dell Boomi AtomSpherecloud integration. The company signed an agreement to acquire SonicWALL, Inc. The company expanded its portfolio ofdesktop virtualization solutions (DVS) by offering new solutions including DVS Simplified Appliance and DVS Enterprise,which will help a wide range of IT organizations implement virtual desktop infrastructures (VDI). Dell introduced CloudServices & Solutions Certification for PartnerDirect channel partners, which will enable them to provide cloud services and

Dell Inc.



solutions to customers based on both Dell technology and their own technology services. Dell expanded its cloudapplications portfolio for growing businesses, Dell Cloud Business Applications (DCBA), with new offerings includingeSignature and eDocument Solutions. It upgraded and expanded its online IT community site, AppDeploy.com, under thename, ITNinja. It signed a definitive agreement to acquire SonicWALL, Inc., a leading company in advanced networksecurity and data protection. American Red Cross and Dell also launched a Digital Operations Center, the first socialmedia-based operation for humanitarian relief. In February 2012, Dell acquired AppAssure, a company providing application protection for virtual, physical and cloud infrastructures. Thecompany was also named recipient of the VMware Global SMB Partner of the Year Partner Network Award by Vmware.The company opened a new technology center in Quincy, Washington, which will provide an access to cloud technologiesand IT outsourcing services to the customers in North America. Dell, together with Atos, announced an offering of IToutsourcing services to provide a standardized cloud-based IT infrastructure and global support solution for Wolters Kluwercustomers. In January 2012, Dell OEM Solutions was selected by Booxware Softwaresysteme GmbH, to deliver a customized hardware platform and arange of supply chain and support services for its appliances. Taleo Corporation, a leading SaaS-based TalentManagement solutions provider, selected Dell Boomi to integrate customer data in talent management cloud.

Dell Inc.



Dell Inc. - Major Products and ServicesDell Inc. (Dell) designs, developing, manufactures, markets and services personal computers, printers, servers and otherrelated products. The company’s key products and services include the following: Dell Inc., Major Products and ServicesProducts:

Desktop Computer Ssystems

Mobility Products

Software and Peripherals

Networking Products

Servers

Storage Products

Printers

Services:

Infrastructure Consulting Services

Deployment Services

Asset Recovery and Recycling Services

Training Services

Support Services

Managed Services

Brands:

Dell

Source : GlobalData

Dell Inc.



Dell Inc. - History

Dell Inc., History

2011 Acquisitions/Mergers/Takeovers In August, the company acquired Force10 Networks, a company active inhigh-performance data center networking.

2011 Acquisitions/Mergers/Takeovers In February, the company completed the acquisition of Compellent

Technologies, Inc.

2011 Acquisitions/Mergers/Takeovers The company acquired Dell Financial Services (DFS) Canada Ltd.

2011 Contracts/Agreements The company signed a strategic alliance agreement with ikaSystems to deliveradvanced administration and care management solutions to healthcare payers.

2011 Corporate Awards The company’s Dell Boomi selected as the "Best Integration Solution" in the

Software & Information Industry Association's (SIIA) 26th Annual CODiEAwards.

2011 Corporate Changes/Expansions In April, the company planned to open the Dell Silicon Valley Research and

Development Center to support its strategic expansion of solutions capabilities,including networking design and development, storage development and cloudcomputing.

2011 Corporate Changes/Expansions In October, Dell opened newest research and development center to achieve

strategic expansion of technology solutions capabilities.

2011 Corporate Changes/Expansions SAP and Dell announced an expansion of their long-standing relationship thatwill deliver new cloud and in-memory computing offerings to help organizationstransform their businesses.

2011 New Products/Services In December, Dell expanded its Integrated CRM solution for growing

businesses, Dell Cloud Business Applications (DCBA), by adding SalesforceService Cloud.

2011 New Products/Services In May, Dell introduced the XPS 15z laptop, the thinnest 15-inch PC on the

planet, and the first in a series of new thin and ultra-powerful products fromDell.

2011 New Products/Services In October, the company introduced the Inspiron One 2320, the all-in-one

desktop that delivers the latest in entertainment and interactive experiences forthe entire family.

2011 New Products/Services In September, Dell extended its ProSupport service to include non-Dell

systems and devices in Europe.

2011 New Products/Services The company introduced new Dell EqualLogic storage solutions and supportingsoftware to help customers address the data management requirements ofincreasingly dynamic, virtualized data centers.

2011 New Products/Services The company introduced new desktops and notebooks in each of its consumer

brands, including thin and powerful Inspiron and XPS notebooks.

2010 Contracts/Agreements Dell entered into a partnership with OnLive, Inc., a pioneer of on-demand,instant-play video games, to power the OnLive Game Service.

2010 Contracts/Agreements Dell entered into a strategic alliance with Telefonica to develop future products

and services designed around enhanced data first experiences, enablingcustomers to interact with family, friends and businesses whenever andwherever.

Dell Inc.



2010 Contracts/Agreements Dell signed an agreement to acquire 3PAR, a leading global provider ofhighly-virtualized storage solutions with advanced data management features,including dynamic tiering and thin provisioning, for multi-tenantcloud-computing environments.

2010 Contracts/Agreements The company entered into an alliance with INTEGRITY Global Security, a

wholly-owned subsidiary of Green Hills Software to provide the INTEGRITYseparation kernel for general-purpose secure computing to governmentagencies.

2010 Contracts/Agreements The company signed an agreement to acquire Scalent, a private company that

provides software, which makes data center infrastructure dynamic, easilyscalable and highly efficient.

2010 New Products/Services The company launched 15.6-inch mobile workstation offering the Intel Core i7

processor Extreme edition and NVIDIA Quadro FX 1800M graphics solution.

2009 Asset Disposal The company announced the sale of its North American remanufacturingoperation in Lebanon, Tenn., to GENCO Supply Chain Solutions, a U.S.-based,third-party logistics services provider.

2009 Contracts/Agreements The company announced that WellPoint, Inc., the nation's largest health

benefits company by medical membership has entered into a five-yearoutsourcing agreement for field support and help desk services through DellGlobal Services.

2009 Corporate Awards The company entered into partnership with Brocade to offer Dell customers

end-to-end computing.

2008 Acquisitions/Mergers/Takeovers The company completed its $1.4 billion acquisition of EqualLogic, a leadingprovider of high-performance storage area network (SAN) solutions.

2008 Acquisitions/Mergers/Takeovers The company completed the acquisition of The Networked Storage Company

(TNWSC), a leading IT consultancy firm.

2008 New Products/Services Dell launched Assessment and Consulting Services to simplify the evaluationand selection of storage, backup, recovery and archiving environments.

2007 Acquisitions/Mergers/Takeovers Dell entered into an agreement to acquire privately-held ZING Systems.

2007 Acquisitions/Mergers/Takeovers The company entered into an agreement to acquire privately-held SilverBack

Technologies.

2007 Contracts/Agreements Dell and Bic Camera partnered on retail sales in Japan.

2007 Contracts/Agreements Dell and SAP partnered to simplify information technology for retail operations.

2007 Contracts/Agreements Dell and Staples entered into a retail agreement and environmentalcollaboration.

2007 Contracts/Agreements Dell entered into an agreement to acquire ASAP Software.

2007 Contracts/Agreements Dell entered into an agreement with Emerson Network Power and its Liebert

power and cooling business.

2007 Contracts/Agreements Dell partnered with Gome, China’s largest consumer electronics retailer onretail sales in China.

2007 Contracts/Agreements Dell signed an agreement to acquire privately-held Everdream, a provider of

Software as a Service (SaaS) solutions.

Dell Inc.



2007 Corporate Changes/Expansions Dell established a new global research and development center in Bangalore.

2007 New Products/Services The company launched Latitude D630, the first notebook computer.

2006 Acquisitions/Mergers/Takeovers The company acquired Alienware Corporation.

2006 Contracts/Agreements Dell and EMC extended their global alliance for five years.

2006 Contracts/Agreements Dell and Sprint entered into a partnership to offer notebook computers.

2006 Corporate Changes/Expansions The company established a new facility in the Edmonton Research Parkhousing 1,000 employees.

2005 Contracts/Agreements Dell entered into a contract with Bombardier Recreational Products.

2005 Corporate Changes/Expansions The company opened its third US manufacturing location in Winston- Salem,

North Carolina.

2004 Corporate Changes/Expansions The company opened a Dell Enterprise Command Center (ECC) in Limerick,Ireland.

2003 Corporate Changes/Expansions The company's name was changed from Dell Computer Corporation to Dell.

2001 New Products/Services The company launched Blade server, Aximx5 handheld and 3100MP projector.

1999 Acquisitions/Mergers/Takeovers Dell acquired CovergeNet, a storage hardware and software developer.

1998 Corporate Changes/Expansions Dell expanded its manufacturing facilities in the Americas and Europe.

1996 Corporate Changes/Expansions The company started Asia Pacific manufacturing center in Malaysia.

1996 New Products/Services Dell started selling computers through its website.

1990 Corporate Changes/Expansions The company opened a manufacturing center in Limerick, Ireland.

1989 New Products/Services The company introduced its first notebook computer.

1988 Stock Listings/IPO The company made its initial public offering.

1985 New Products/Services The company introduced the Turbo, its first PC.

1984 Incorporation/Establishment Michael Dell founded the company as Dell Computer Corporation (Dell) in

1984.

Source : GlobalData

Dell Inc.



Dell Inc. - SWOT Analysis SWOT Analysis - OverviewDell Inc. is focused on designing, developing, manufacturing, marketing and servicing personal computers, printers, serversand other related products. It serves large corporate, government, healthcare and education customers. It also serves smallto medium businesses and individual consumers. The company has developed a strong competitive position in the marketthrough strong product portfolio and focused channel operations. Lawsuits and allegations, and its poor liquidity positionare areas of concern. Going forward, economic downturn and competition may impede its growth opportunities. However,Dell’s latest agreement to acquire Perot and its other recent acquisitions offer scope for growth. Dell Inc. - StrengthsStrength - Increasing Operational EfficiencyThe company reported strong operational efficiency with decreased cost and increased margins. Dell’s revenues in thefiscal year 2012 accounted for $62,071m, representing an increase of 0.94% over 2011. During fiscal 2012, the company’soperating income was $4,431m, as compared to $3,505m, an increase of 26.42% over 2011. Its net profit also increasedsignificantly to $3,492m, an increase of 32.52% over 2011. The company’s gross margin and operating margin increased to22.25% (18.53%-2011) and 7.14% (5.7%-2011) respectively during the fiscal year ended 2012. The increased operatingmargin may indicate efficient cost management or a strong pricing strategy by the company. Its return on equity, capitalemployed and working capital rose to 39.16% (33.93%-2011), 19.66% (18.34%-2011) and 59.5% (36.75%-2011)respectively. On the other hand, the company reduced its operating cost as percentage of sales to 92.86% in 2012 from94.3% in 2011. The decreasing cost structure improves the margin position of the company. Strength - Focused Channels OperationsThe company organized its operations into four customer segments, namely, consumer, SME, large enterprise and thepublic sector. Dell's marketing strategy is organized under three principles, namely, need, trend and the characteristics ofits customers. Dell operates on the customer-focused direct business model and indirect sales channels outside the US.The direct sales operations of the company are spread across various markets including Australia, Brunei, China, HongKong, India, Japan, Korea, Macau, Malaysia, New Zealand, Singapore, Taiwan and Thailand. Furthermore, the companyoperates 38 distributors, which serve another 31 markets. It believes in maintaining direct contact with its customers. Thecompany has the most efficient and effective supply chain management in place. Customers place their orders either bytelephone or through the website and the customized product reaches their doorstep within seven days. The assembledproducts are directly shipped from the warehouses of the company to the customers. The company gets continuousbenefits from its direct business models through direct and continuous feedback from customers. The feedback fromcustomers help the company in developing and refining Dell’s products and marketing programs for specific customergroups. Furthermore, the company’s direct sales team helps minimize the costs and reduces its sales credit risk as itcollects receivables directly from the customers. Moreover, its indirect sales channels help capitalize on the relationshipsand gain valuable knowledge of traditional customs and logistics. Strength - Strong Product PortfolioDell has a wide range of IT hardware products, which makes it a leader in the market. Its products include laptops/notebookcomputers, mini netbooks, desktops, keyboards, mouse, and monitors. It is also a distributor of toners, GPS products,mouse, digital cameras, gaming consoles, mobile phones, PDAs, televisions, etc. It is also a third-party vendor of operatingsystems, besides selling software solutions including anti-virus suite and Internet security ware. The company also providesrelated services to its customers including configuration, installation, and maintenance services. In addition, it offersfinancial services to its customers, enabling them to buy on credit. Wide range of products and related services enable it toretain its customer base. In May 2011, Dell announced additions to its desktop virtualization solutions portfolio including anenhanced Dell Virtual Lab 2.0 solution and new Dell OptiPlex FX170 and FX130 thin client offerings. The new Virtual Lab2.0 solution, designed for colleges and universities, with validation testing on six of the most popular applications, affordingstudents and faculty the freedom to access secure, lab-based software virtually anytime, anywhere and from any device. Italso introduced the XPS 15z laptop, the thinnest 15-inch PC on the planet, and the first in a series of new thin andultra-powerful products from Dell. In August 2011, the company introduced new Dell EqualLogic storage solutions andsupporting software to help customers address the data management requirements of increasingly dynamic, virtualizeddata centers. The company also released details of new integration across its storage portfolio with the forthcomingVMware vSphere 5 virtualization and cloud infrastructure platform. Strength - Robust Research & Development CapabilitiesDell has robust research and development (R&D) capabilities. The R&D activities of the company focus on improving theperformance of products and developing new technologies. The company focuses on R&D activities to develop newinformation technology systems equipment and enhance as well as maintain its technological advantages. Its R&Dcapabilities enable Dell to overcome technical barriers encountered in the commercialization of sophisticated computer

Dell Inc.



devices and peripherals. In last three years, the company invested more than $1,933m in company-sponsored researchand development. The R&D team of the company has undertaken several projects to enhance and develop variousproducts and technologies. During Fiscal 2012, the company opened a research and development center in Santa Clara,California as well as a data center in Washington. As of February 2, 2012, the company obtained 3,449 worldwide patentsand applied for 1,660 additional worldwide patents. During Fiscal 2012, research, development, and engineering expenseswere 1.5% of net revenue, compared to 1.0% during the prior year. The company also holds licenses to use numerousthird-party patents. Strong R&D capabilities of the company enable it to implement innovative technology and deliveradvanced products and services that meet its customers' critical needs. Dell Inc. - WeaknessesWeakness - LitigationsInvolvement in litigation adds to costs, which could have an adverse impact on the operations and financial position of thecompany. Dell is involved in various claims, suits, assessments, investigations, and legal proceedings, consisting ofmatters involving consumer, antitrust, tax, intellectual property, and other issues on a global basis. In 2010, it was allegedthat the company shipped over 11.8 million faulty OptiPlex PCs between 2003 and 2005 that incorporated a faultycapacitor. In 2008, Convolve, Inc. sued Dell, Western Digital Corporation, Hitachi Global Storage Technologies, Inc., andHitachi Ltd. in the Eastern District of Texas, Marshall Division, alleging that the defendants infringe United States PatentNo. 4,916,635 (entitled Shaping Command Inputs to Minimize Unwanted Dynamics) and United States Patent No.6,314,473 (entitled System for Removing Selected Unwanted Frequencies in Accordance with Altered Settings in a UserInterface of a Data Storage Device). In 2011, a jury found that the patents had been infringed and awarded the plaintiff theamount. Additionally, the company is involved in various legal proceedings which include commercial litigation and a varietyof patent suits. The outcome of these litigations is still pending and is unpredictable. Adverse outcome could have amaterial adverse effect on Dentsply’s operational and financial performance. Weakness - Limited LiquidityDell has limited liquidity, which makes it difficult to the company to meet its short term obligations. In fiscal 2012, thecompany reported a current ratio of 1.34 as compared to 1.49 in fiscal 2011. A lower current ratio indicates that thecompany is in a weaker financial position than other companies in the sector. Similarly, the company reported weak quickand cash ratios of 1.27 (1.42-2011) and 0.67 (0.74-2011), respectively in 2012. The company’s debt burden increased to$9,254m in 2012 from $5,997m in 2011, reflecting an increase of 54.3% over 2011. Low ratios represent weak liquidity andperformance of the company. The performance of the company depends largely on the cash reserves and its ability togenerate cash from operations. Lack of sufficient cash or cash equivalents would negatively affect the working capital of thecompany, which could hamper the company’s operations. Dell Inc. - OpportunitiesOpportunity - Growing Cloud Computing MarketsIn December 2011, Dell announced to expand its Integrated CRM solution for growing businesses, Dell Cloud BusinessApplications (DCBA), by adding Salesforce Service Cloud, the industry-leading customer service application fromsalesforce.com. As per the industry analysts, the global markets for global cloud computing is forecasted grow from $37.8billion in 2010 to $121.1 billion in 2015 at a CAGR of 26.2% during the period. As per estimates from analysts, the cloudcomputing markets of Germany is expected to grow from EUR1.14 billion in 2010 to EUR8.2 billion in 2015, an averagegrowth rate of 48%. The cloud computing markets is expected to account approximately 10% of total IT expenditure inGermany by 2015. In addition, the markets of North American and European virtualization markets expected to grow at aCAGR of 8.5% during 2010-16. As per industry analysts, the markets for virtualization of North America and Europe willcross $12.3.8 billion and $94.7 billion, respectively in 2016. Such positive growth in cloud computing markets provides thecompany an opportunity for further growth. Opportunity - IT Market OutlookThe company could benefit from the positive long-term outlook for IT services market. According to industry estimates,expenditure on IT services is expected to rebound by 2012, at an expected growth rate of 6%. Demand for IT services islikely to be driven by growth in financial services, healthcare, communications and media. Worldwide IT spending reported$3.6 trillion in 2011, reflecting an increase of 5.1% over that in 2010. Moreover, global IT market is expected to expandnearly 30% over the next few years. The demand for green IT services, driven by companies trying to improve their costefficiencies, is projected to be about $4.8 billion by 2013. In 2011, the demand for three major segments of the IT market,namely, hardware, software, and services, is increased to 7.8%, 5.3% and 3.5% respectively over that in 2010, leading toan increase in demand for servers, peripherals and storage, and networking equipment. Thus, the company couldcapitalize on the growing global IT services market, which could enhance its revenue and strengthen its market position. Opportunity - Strategic Acquisitions

Dell Inc.



The company focuses on acquisitions that complement its existing businesses. In July 2012, Dell and Quest Softwareentered into a definitive agreement for Dell to acquire Quest, an IT management software provider. The Quest Softwareacquisition provides various components to expand Dell’s software capabilities in security, systems management, dataprotection and workspace management. In May 2012, Dell acquired Wyse Technology, a leading company in cloud clientcomputing. With this acquisition, the company expanded its desktop virtualization offering that enable it to offer range of ITsolutions for its customers and partners. In the same month, the company acquired SonicWALL, Inc., a leading company inadvanced network security, secure remote access, email security, backup and recovery, and management and reporting.With SonicWALL acquisition, the company expanded its security software and services portfolio. In April 2012, thecompany signed a definitive agreement to acquire Make Technologies, a leading global provider of applicationmodernization software and services that reduce the cost, risk and time required to re-engineer applications. Thisacquisition of Make Technologies, Clerity Solutions and its existing services capabilities enables Dell to provide end-to-endsolutions from hardware through application migration services. In April 2012, the company also completed the acquisitionof Clerity Solutions, a leading global provider of applications modernization and re-hosting solutions and services. Thisacquisition enables Dell Services to help customers reduce the cost of transitioning business-critical applications and datafrom legacy computing systems and onto more modern architectures, including the cloud. The company also signeddefinitive agreement to acquire Wyse Technology, the global leader in cloud client computing, to significantly expand itsdesktop virtualization offerings. This expands Dell’s desktop virtualization capabilities and provides new marketopportunities for the full range of Dell’s enterprise solutions and services. In March 2012, the company announced its intentto acquire SonicWALL, Inc. designs comprehensive security solutions combining advanced capability with ease of use,delivering a high return on investment for customers. This acquisition expands the company’s rapidly growing security andservices portfolio, which includes security services, cloud security solutions, data encryption solutions and vulnerability andpatch management. Dell acquired AppAssure, a global leader in complete server, data and application protection for virtual,physical and cloud infrastructures. This acquisition broadens its enterprise portfolio for a complete range of data centerproducts and solutions and extends its Fluid Data architecture to constantly adapt to change, deliver business results fasterand protect data everywhere. In early 2012, the company acquired Compellent Technologies, Inc. further expanding itsnetwork storage offerings, and it has added a variety of increasingly flexible new Dell EqualLogic (EqualLogic). In August 2011, Dell acquired Force10 Networks, a leader in high-performance data center networking. The acquisitionbroadens the company’s networking portfolio to deliver its Virtual Network Services Infrastructure. In 2011, Dell acquiredDell Financial Services (DFS) Canada Ltd., a CIT Vendor Finance and Dell partnership. Under the agreement, thecompany acquired CIT Vendor Finance’s Dell-related assets and sales and servicing functions in Europe, and these assetsenabled global expansion of Dell’s direct finance model. In February 2011, Dell acquired Compellent Technologies, Inc., arapidly-growing provider of highly-virtualized storage solutions with automated data management features, including tieringand thin provisioning, for enterprise and cloud-computing environments. The company also acquired SecureWorks Inc., aglobally recognized provider of information security services. The acquisition expands Dell’s IT-as-a-Service offerings andgives the company industry-leading capabilities. The company also acquired SecureWorks Inc. to expand itsIT-as-a-Service offerings. The acquisition will help the company to enhance its technological capabilities. During Fiscal2011, the company acquired Kace Networks, Inc., Ocarina Networks Inc., Scalent Systems Inc., Boomi, Inc., and InSiteOne, Inc. Strategic acquisitions such as these would enhance its product portfolio and global reach. Opportunity - Focus on Small and Medium BusinessesThe company, a leader with 28% share in the small and medium businesses in North America, is focusing on improving thesale of its products, services and solutions for small and medium businesses. It has been launching SSC-Small andMedium Businesses Solution Centers worldwide. A SSC-Small and Medium Businesses Solution Center sells a full line ofproducts, services and solutions of Dell exclusively for SMB customers. It also offers customized IT solutions andpre-installed Microsoft operating systems. These centers carry products specially designed for SMBs such as Vostrodesktops and notebooks, PowerEdge servers, PowerVault storage, and Dell EqualLogic storage. These centers prove tobe the foundation of Dell's entire sales network. They would enable Dell to expand its customer base and market share. Dell Inc. - ThreatsThreat - Foreign Currency FluctuationsThe robust international operations of the company increase its exposure to foreign currency fluctuations. The companyoperates throughout the world and has dealings in various currencies. It operates in different countries and transactsbusiness in various currencies including Euro, Euro, Chinese Renminbi, Japanese Yen, British Pound, Canadian Dollar,and Australian Dollar. However, the functional currency of the company’s operations is principally the US Dollar. Thecompany makes efforts to mitigate the risk through foreign currency hedging. However, these hedging activities may notoffset more than a portion of the adverse financial impact resulting from the unfavorable movement in foreign currencyexchange rates. The constant fluctuations in currency would adversely affect the results of operations of the company. Threat - Rapid Technological ChangesThe technology market is subject to rapid changes, and, to compete effectively, the company must continually introduce

Dell Inc.



new products that achieve market acceptance. The IT enabled communication equipment industry is characterized by fasttechnological changes, evolving industry standards, changing market conditions and frequent new product and serviceintroductions and enhancements. The introduction of products using new technologies or the adoption of new industrystandards can make the existing products or products under development obsolete or unmarketable. In order to remaincompetitive and in order to increase its sales, the company needs to adapt to the rapidly changing business environment. Threat - Intense CompetitionThe company faces intense competition, which could adversely affect its revenue and profitability. Competition is intense ina shrinking IT hardware market, which is subject to rapid technological advances in hardware, software, and serviceofferings. The company competes from both branded and generic competitors. Some of the competitors of the companyinclude IBM and HP, which enjoy significant market position and financial strengths. There is also an influx of small playersoffering hardware such as mouse and keyboard, as the IT industry has generally low barriers to entry. Besides, thecompany also faces increased competition from new types of products as the options for mobile and cloud computingsolutions increases. This could have an impact on its margin. After sales service is also another critical area, in whichcompanies try to stand out. Threat - Change of Business ModelThe company augmented its operations through organic growth by expanding its presence and the portfolio offered. Thecompany recently announced that it was shifting its operations to higher margin enterprise products, including servers,software, storage and services. Dell also has plans to acquire a few mid-sized companies to enter higher margin productssegments. Further it is also planning to consolidate its Public and Large Enterprise business units into a singleorganization. A significant change in its business operations may impact the overall strategic position of the company ashigh margin products are already flooded with large players and require restructuring in its strong direct business model.Furthermore, the company could be impacted by various factors including strategic rationale, funding strategy, targetfinancial performances relative to transaction price, and integration risk, including the extent to which it divertsmanagement's attention from achieving its $4 billion cost reduction target. NOTE:* Sector average represents top companies within the specified sectorThe above strategic analysis is based on in-house research and reflects the publishers opinion only

Dell Inc.



Dell Inc. - Key Competitors Dell Inc., Key Competitors

Name HeadquartersAcer Inc. TaiwanApple Inc. United StatesCDW United StatesEMC Corporation United StatesGateway, Inc. United StatesHewlett-Packard Company United StatesInternational Business Machines Corporation United StatesLenovo Group Limited Hong Kong Special Administrative Region of ChinaSHI International Corp. United StatesGlobalData

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Dell Inc. - Key Employees Dell Inc., Key Employees

Name Job Title Board Level Since Age

Michael S. Dell Chairman, Chief ExecutiveOfficer

Executive Board

2007 47

Donald J. Carty Director Non Executive Board 1992 66James W. Breyer Director Non Executive Board 2009 50H. Ross Perot, Jr. Director Non Executive Board 2009 53Shantanu Narayen Director Non Executive Board 2009 49Laura Conigliaro Director Non Executive Board 2011 Janet F. Clark Director Non Executive Board 2011 Kenneth M. Duberstein Director Non Executive Board 2011 Gerard J. Kleisterlee Director Non Executive Board 2010 Brad R. Anderson President, Enterprise Solutions Senior Management 2012 52

Jeffrey W. ClarkePresident, End-User ComputingSolutions & Operations, ViceChairman

Senior Management

49

Brian T. Gladden Chief Financial Officer, SeniorVice President

Senior Management

47

Stephen F. Schuckenbrock President, Services Senior Management 51

Lawrence P. Tu General Counsel, Secretary,Senior Vice President

Senior Management

57

David L. Johnson Senior Vice President,Corporate Strategy Senior Management 58

Karen Quintos Chief Marketing Officer, SeniorVice President

Senior Management

2010 48

John Swainson President, Software Group Senior Management 2012 57Adriana Karaboutis Global Chief Information Officer Senior Management 2012

Steven H. Price Senior Vice President, HumanResources Senior Management 50

Nnamdi J. Orakwue Executive Assistant to Chairmanand CEO Senior Management

Source : GlobalData

Dell Inc.



Dell Inc. - Key Employee Biographies Dell Inc., Key Employee Biographies Michael S. DellJob Title: Chairman, Chief Executive OfficerBoard Level: Executive BoardSince: 2007Age: 47

Mr. Dell has been the chairman of the board of directors and the chief executiveofficer of Dell since 2007. He founded the company in 1984. Mr. Dell and hiswife formed the Michael & Susan Dell Foundation in 1999, and he also formedMSD Capital In 1998. He serves on the Foundation Board of the WorldEconomic Forum, the executive committee of the International Business Counciland is a Member of the U.S. Business Council. He is also on the governingboard of the Indian School of Business, Hyderabad, India.

Brian T. GladdenJob Title: Chief Financial Officer, Senior VicePresidentBoard Level: Senior ManagementAge: 47

Mr. Gladden is the senior vice president and the chief financial officer of Dell. Heserved as the president and the chief executive officer of SABIC InnovativePlastics Holding BV. Prior to this, he served at General Electric (GE) for 20years. In the past, he held several responsible positions such as vice presidentand the general manager and the chief financial officer of GE Plastics. He alsoemployed as vice president and the chief financial officer of GE MedicalSystems Healthcare IT business.

Source : GlobalData

Dell Inc.



Dell Inc. - Company Statement A statement by Mr. Dell, the chairman and chief executive officer of Dell Inc. is given below. The following statement has been takenfrom the company's website. Information technology is undeniably among the great problem-solving innovations of all time. It’s connecting the world, transformingthe workplace, and making possible today what was considered impossible yesterday. The challenge for technology providers isunderstanding the problems customers are trying to solve and responding with the right solutions and services. That’s where Dell isdifferent. We’ve been listening to and engaging our customers for 28 years, and their insight guides everything we do. Our end-to-endsolutions strategy—and the innovations and investments we made in fiscal year 2012 to enable it—are, as you’d expect, truly customerinspired. Our industry is filled with both promise and complexity, and our customers tell us every day they need our help making sense of it. Afterall, technology is changing at lightning speed. Advances in mobility and cloud computing, the proliferation of data, and the imperative toprotect, store and extract insight from it are the very real obstacles and opportunities facing our customers. We’re reshaping ourbusiness to address these issues from the desktop to the data center and to help our customers achieve their full potential. I’m proud to report we delivered on that promise in fiscal year 12. We made big investments to expand our portfolio of solutions andcapabilities and to build an expert global workforce to deliver them to our millions of customers. By the end of the year, enterprisesolutions and services accounted for roughly 50 percent of gross margins—a record result, and great validation that we’re on the rightroad and delivering the technology solutions our customers need. Technology is shaping the future and enabling human potential on a global scale. The pace of innovation today is saving lives, creatingjobs, and helping children learn like never before—and I believe we’re just getting started. I’m proud of how Dell is evolving to deliverthe solutions of tomorrow. We are more committed than ever to our growth strategy, and we know that the best days are still ahead—forour industry, our customers and for Dell. Fiscal Year 2012 Highlights Fiscal year 2012 marked the best financial performance in our history. Revenue was $62.1 billion, up one percent from fiscal year 11,and gross margin dollars, operating income and earnings per share rose to record levels. Our enterprise solutions and servicesbusiness, a bellwether for execution of our strategy, grew six percent to $18.6 billion, and was nearly 30 percent of revenue and almosthalf of gross margin dollars. Services revenue was up 8 percent, with 75 percent growth year-over-year in new contract signings. GAAP operating income climbed 29 percent to $4.4 billion, or 7.1 percent of revenue, and non-GAAP operating income rose 24 percentto $5.1 billion, or 8.3 percent of revenue. We delivered GAAP EPS of $1.88, an increase of 39 percent, and non-GAAP EPS of $2.13,up 34 percent. Cash flow from operations grew 39 percent to $5.5 billion, and we finished the year with $18.2 billion in cash andinvestments. The solid financial performance of fiscal year 12 was driven largely by strategic moves to optimize our operations and invest in ourend-to-end solutions and services capabilities. We remain committed to delivering the devices our customers use to generate andconsume information, but we also see tremendous opportunity in developing and bringing to market the IT infrastructure that supports,connects, manages and secures it. We established four solutions groups to support our customer segments—end-user computing, enterprise solutions, software andservices—and are committed to designing and delivering technologies that are practical, relevant and customer inspired. Without legacyproducts and business models to hold us back, Dell is uniquely positioned in the industry to adopt, develop and deploy the evolutionaryand revolutionary solutions our customers need to do and achieve more. Early last year, we announced our intent to invest $1 billion in cloud data and solution centers to help our customers adopt and benefitfrom new compute and information-delivery advancements. Since then we’ve opened 11 solution centers, two data centers andincreased our R&D spend by 30 percent—innovating inside Dell to make cloud, data center virtualization, intelligent data management,and next-generation solutions and services more accessible to customers of all sizes. We also continued to invest in our intellectual property portfolio by acquiring RNA Networks and Force10 Networks, companies thatspecialize in virtualizing and automating data center and cloud networks. We’ve acquired more than a dozen companies since webegan executing our solutions strategy, and we’ve brought this momentum into the current fiscal year. AppAssure, SonicWALL, WyseTechnology, Clerity and Make Technologies are our latest additions to a growing list of strategic acquisitions. These companies bringcritical, market-tested IT modernization, desktop virtualization, storage and security capabilities to Dell that are enabling our end-to-endsolutions strategy. We improved the cost position, execution and profitability of our core laptop and desktop business by simplifying our offerings,enhancing our online ordering process, and revamping our supply chain. These optimization measures helped free up capital toreinvest in the strategic priorities that advance our business and deliver better value to our customers and our shareholders.Fiscal Year 2013 and Beyond We are pleased with our progress and more convinced than ever that our strategy is the right one. There is still work to do and we’renot slowing down in fiscal year 13. We’ve already made five acquisitions and established a new software solutions group.

Dell Inc.



You’ll see us continue to evolve to keep pace with our dynamic industry, but some things will never change, like our commitment to ourplanet, people and community. Our sustainability practices are integrated into all aspects of the product life cycle—from design andengineering, to shipping and packaging, to operation and recycling—and are considered among the best in our industry. We work hardto foster a work environment for our global team that is inclusive, collaborative and reflects the diverse cultures of our customers allover the world. We earmark one percent of our pretax profits to high-impact, charitable causes. Last year we helped more than ahalf-million children in 10 countries through our youth learning programs and launched an innovative healthcare initiative to accelerateand personalize treatment for children with pediatric cancer. I am excited about our future. Information technology is a $3 trillion industry, and we currently have roughly a two-percent share. Theopportunity to grow and, more importantly, to help our customers achieve their goals is tremendous. That is—and will always be—ourultimate goal. We know we’re on the right path. We know because we’re still listening to the people who rely on our solutions and services to do more,every day. That is the power of Dell.

Dell Inc.



Dell Inc. - Locations And Subsidiaries Head OfficeDell Inc.One Dell WayRound RockTXZIP: 78682United StatesTel: +1 800 2893355 Other Locations & Subsidiaries Dell Inc., Subsidiaries

Alienware Corporation14591 SW 120th St.MiamiFLZip: 33186United States

Dell Corporation LimitedMilbanke HouseBerkshireZip: RG12 1RWUnited KingdomTel: +44 1344 860456Fax: +44 1344 372767

Dell Canada Inc.155 Gordon Baker RoadSuite 501North YorkONCanadaTel: +1 416 7582100Fax: +1 416 7582308

Perot Systems GmbHHerriotstrasse 1Frankfurt am MainZip: 60528GermanyTel: +49 69 66446400Fax: +49 69 66446500

Perot Systems Nederland B.V.Hoefseweg 1AmersfoortZip: 3821The NetherlandsTel: +31 33 4534545Fax: +31 33 4534550

ASAP Software Express Inc.850 Asbury DriveBuffalo GroveILZip: 60089United StatesTel: +1 847 4653700Fax: +1 847 4653277

KACE Networks, Inc.1616 North Shoreline BoulevardSuite BMountain ViewCAZip: 94043United StatesTel: +1 650 3161050Fax: +1 650 6491806

PSC Management Limited Partnership2300 W Plano PkwyPlanoTXZip: 75075United States

Perot Systems TSI (Middle East) FZ-LLCBuilding #1Office #106DubaiUnited Arab EmiratesTel: +971 4 3911760/1

Dell Computer de Chile Ltda.Ricardo Laio 222PisoProvidenciaSantiagoZip: 11

Dell Inc.



Fax: +971 4 3918656

ChileTel: +56 26856800Fax: +56 22324290

QSS Group, Inc4500 Forbes BlvdSte. 200LanhamMDZip: 20706United StatesUrl: www.qssgroupinc.com

Alienware Labs CorporationFLUnited States

Boomi, Inc801 Cassatt RoadSuite 120BerwynPAZip: 19312United StatesTel: +1 800 7323602Fax: +1 610 8540700

Bracknell Boulevard (Block C) L.L.C.DEUnited States

Bracknell Boulevard (Block D) L.L.C.DEUnited States

DCC Executive Security Inc.DEUnited States

Dell America Latina Corp.DEUnited States

Dell Asset Revolving TrustDEUnited States

Dell Asset Securitization GP L.L.C.DEUnited States

Dell Asset Securitization Holding L.P.DEUnited States

Dell Colombia Inc.DEUnited States

Dell Computer Holdings L.P.TXUnited States

Dell Conduit Funding L.P.DEUnited States

Dell Conduit GP L.L.C.DEUnited States

Dell DFS CorporationDEUnited States

Dell DFS Holdings L.L.C.DEUnited States

Dell Equipment Funding L.P.DEUnited States

Dell Equipment GP L.L.CDEUnited States

Dell Federal Systems CorporationDEUnited States

Dell Federal Systems GP L.L.C.DEUnited States

Dell Federal Systems L.P.One Dell WayRond

Dell Federal Systems LP L.L.C.DEUnited States

Dell Inc.



Round RockTXZip: 78682United StatesTel: +1 800 7271100Fax: +1 877 4168334

Dell Financial Services L.L.C.12234 North Interstate 35Suite 35BAustinTXZip: 78753United StatesTel: +1 512 7283500Fax: +1 512 7236082Url: www.dfs.us.dell.com

Dell Funding L.L.C.Las VegasNVZip: 89109United States

Dell Global Holdings IV L.L.C.DEUnited States

Dell Global Holdings IX L.L.C.DEUnited States

Dell Global Holdings L.L.C.DEUnited States

Dell Global Holdings VI L.L.C.DEUnited States

Dell Global Holdings VII L.L.C.DEUnited States

Dell Global Holdings VIII L.L.CDEUnited States

Dell International Holdings I L.L.C.DEUnited States

Dell International L.L.C.DEUnited States

Dell Marketing CorporationDEUnited States

Dell Marketing GP L.L.C.AustinDEUnited States

Dell Marketing L.P.One Dell WayMS RR8-07Round RockTXZip: 78682United StatesTel: +1 512 7230016Fax: +1 512 2839092

Dell Marketing LP L.L.C.DEUnited States

Dell Products CorporationDEUnited States

Dell Products GP L.L.C.DEUnited States

Dell Products L.P.1 Dell WayRound RockTXZip: 78682

Dell Products LP L.L.C.DEUnited States

Dell Inc.



United StatesTel: +1 512 3384400

Dell Protective Services Inc.DEUnited States

Dell Receivables CorporationWilmingtonDEZip: 19808United States

Dell Receivables GP L.L.C.DEUnited States

Dell Receivables L.P.Round RockTXUnited States

Dell Receivables LP L.L.C.DEUnited States

Dell Revolver Company L.P.Round RockTXZip: 78682United States

Dell Revolver Funding L.L.C.Las VegasNVZip: 89106United States

Dell Revolver GP. L.L.C.DEUnited States

Dell Services Engineering Corp.DEUnited States

Dell Trinity Holdings Corp.DEUnited States

Dell USA CorporationDEUnited States

Dell USA GP L.L.C.DEUnited States

Dell USA L.P.1 Dell WayRound RockTXZip: 78682United StatesTel: +1 512 3384400Fax: +1 512 7284994

Dell USA LP L.L.C.DEUnited States

Dell World Trade CorporationDEUnited States

Dell World Trade GP L.L.C.DEUnited States

Dell World Trade L.P.TXUnited States

Dell World Trade LP L.L.C.DEUnited States

DFS Equipment Holdings, LPDEUnited States

DFS Equipment Remarketing LLCDEUnited States

DFS Funding L.L.C.DEUnited States

DFS-SPV L.L.C.DEUnited States

Dell Inc.



DII Shield Corp.DEUnited States

InSite One, Inc.135 N. Plains Industrial RoadWallingfordCTZip: 06492United StatesTel: +1 203 2656111Fax: +1 203 2651144Url: www.insiteone.com

License Technologies Group, Inc.501 Dell WayRound RockTXZip: 78682United States

Perot Systems Application Solutions Inc.DEUnited States

Perot Systems Communications Services, Inc.DEUnited States

Perot Systems Government Healthcare Solutions, Inc.DEUnited States

Perot Systems Government Solutions, Inc.DEUnited States

Perot Systems Healthcare Services LLCDEUnited States

Perot Systems Healthcare Solutions, Inc.MAUnited States

Perot Systems Revenue Cycle Solutions, Inc.DEUnited States

PrSM CorporationTNUnited States

PSC GP CorporationPlanoTXUnited States

PSC Healthcare Software, Inc.DEUnited States

PSC LP CorporationLas VegasNVUnited States

Transaction Applications GroupNEUnited States

Alienware Latin America, S.ACosta Rica

Canada Branch of Perot Systems CorporationCanada

Canada Branch of Perot Systems Healthcare Solutions, Inc.Canada

Corporacion Dell de Venezuela SAVenezuela

Dell Computadores do Brasil Ltda.Brazil

Dell Computer Services de Mexico SA de CVMexico

Dell Ecuador Cia LtdaEcuador

Dell Export Sales CorporationBarbados

Dell Global Holdings III L.P.Cayman Islands

Dell Global Holdings Ltd.Cayman Islands

Dell Guatemala LtdaGuatemala

Dell Inc.



Dell Honduras S de RL de CVHonduras

Dell Mexico, S.A. de C.V.Mexico

Dell Panama S. de R.L.Panama

Dell Peru, SACPeru

Dell Puerto Rico Corp.Puerto Rico

Dell Quebec Inc.QCCanada

Dell Technology Services Inc. S.R.L.Costa Rica

Dell Trinidad and Tobago LimitedTrinidad and Tobago

EqualLogic CanadaCanada

Perot Systems (Canada) CorporationCanada

Perot Systems TSI (Bermuda) Ltd.Bermuda

TXZ Holding Company LimitedBermuda

26eme Avenue SASFrance

Abu Dhabi Branch of PSC Healthcare Software, Inc.Abu DhabiUnited Arab Emirates

Alienware LimitedIreland

Bracknell Boulevard Management Company LimitedUnited Kingdom

Branch of Dell (Free Zone Company L.L.C.)Saudi Arabia

Dell A.B.Sweden

Oy Dell A.B.Finland

Dell A/SDenmark

Dell A.S.Norway

Dell Asia B.V.The Netherlands

Dell B.V.Transformatorweg 38-72AmsterdamZip: 1014 AKThe NetherlandsTel: +31 20 6744200

Dell Computer (Proprietary) LtdSouth Africa

Dell Computer EEIGUnited Kingdom

Dell Computer International (II) — Comercio de ComputadoresSociedade Unipessoal LdaPortugal

Dell Computer S.A.Spain

Dell Computer spol. sroCzech Republic

Dell DFS Holdings Kft.Hungary

Dell DirectIreland

Dell Distribution (EMEA) Limited External Company (Ghana)Ghana

Dell Distribution Maroc (Succ)Morocco

Dell Emerging Market (EMEA) Ltd Dell Emerging Markets (EMEA) Limited

Dell Inc.



Russian Federation

United Kingdom

Dell FZ-LLCUnited Arab Emirates

Dell Gesm.b.H.Austria

Dell Global B.V.The Netherlands

Dell Global Holdings I BVThe Netherlands

Dell Global Holdings III BVThe Netherlands

Dell Global Holdings II BVThe Netherlands

Dell Global International B.V.The Netherlands

Dell GmbHMain Airport CenterUnterschweinstiege 10Frankfurt am MainHessenZip: 60549Germany

Dell Halle GmbHLeipziger Chaussee 191 gHalleZip: 06112GermanyTel: +49 345 95994505Fax: +49 345 95994500

Dell Hungary Technology Solutions Trade LLCHungary

Dell III-Comercio de Computadores, Unipessoal LDAPortugal

Dell International Holdings IX B.V.United States

Dell International Holdings Kft.Hungary

Dell International Holdings VIII B.V.The Netherlands

Dell International Holdings X B.V.The Netherlands

Dell International Holdings SASFrance

Dell International Holdings XII Cooperatoef U.A.The Netherlands

Dell International Services SRLRomania

Dell L.L.C.Russian Federation

Dell N.V.Belgium

Dell ProductsIreland

Dell Products (Europe) B.V.The Netherlands

Dell Products (Poland) Sp. z o.oPoland

Dell Products Manufacturing Ltd.Ireland

Dell ResearchIreland

Dell S.A.Switzerland

Dell S.p.A.Italy

Dell s.r.o.Slovakia

Dell SASMorocco

Dell SALuxembourg

Dell Inc.



Dell Services S.r.l.Italy

DELL SOLUTIONS (UK) LTDUnited Kingdom

Dell Sp.z.o.oPoland

Dell Taiwan B.VThe Netherlands

Dell Technology & Solutions (Nigeria) LimitedNigeria

Dell Technology & Solutions Israel Ltd.Israel

Dell Technology & Solutions Ltd.Ireland

Dell Technology Products and Services S.A.Greece

Dell Teknoloji Limited SirketiTurkey

DIH IX CVThe Netherlands

DIH VI CVThe Netherlands

DIH VIII CVThe Netherlands

DIH VII CVThe Netherlands

Jordan Branch of Perot Systems Europe LimitedJordan

LLC Dell UkraineUkraine

Perot Systems (Czech Republic) s.r.o.Czech Republic

Perot Systems (Germany) GmbHGermany

Perot Systems (Slovakia) s.r.o.Slovakia

Perot Systems (Switzerland) GmbHSwitzerland

Perot Systems (UK) Ltd.United Kingdom

Perot Systems A.G.Switzerland

Perot Systems B.V.The Netherlands

Perot Systems Investments B.V.The Netherlands

Perot Systems S.r.l.Italy

Perot Systems TSI (Hungary) Liquidity Management LLCHungary

Perot Systems TSI (Netherlands) B.VThe Netherlands

Perot Systems TSI (Mauritius) Pvt. Ltd.Mauritius

Perot Systems TSI (India) Private LimitedIndia

Persys Ireland LimitedIreland

SCI New-TechFrance

SCI SimanFrance

ACS (India) LimitedIndia

Alienware Corporation (Pacific Rim), Pty Ltd.Australia

Australia Branch of Perot Systems (Singapore) Pte. Ltd.Australia

Bearing Point Management Consulting (Shanghai) Ltd.China

Dell (China) Company LimitedChina

Dell (Thailand) Co., Ltd.Thailand

Dell (Xiamen) Company LimitedChina

Dell Inc.



Dell Asia Holdings Pte. Ltd.Singapore

Dell Asia Pacific Sdn.Malaysia

Dell Asia Pacific Sdn BhdPakistan

Dell Australia Pty LimitedBuilding 314 Aquatic DrFrenchs ForestNSWAustraliaTel: +61 2 89725000

Dell Global Business Center Sdn. Bhd.Malaysia

Dell Global Procurement Malaysia Sdn. Bhd.Malaysia

Dell Global Pte. Ltd.Singapore

Dell Hong Kong LimitedHong Kong Special Administrative Region of China

Dell International Inc.Republic of Korea

Dell International Services India Private LimitedIndia

Dell International Services Philippines Inc.Philippines

Dell Japan Inc.580 Saiwai-choKawasakiKNGZip: 212 8589JapanTel: +81 044 5564300Url: www.dell.com/jp

Dell New Zealand LimitedNew Zealand

Dell Procurement (Xiamen) Company LimitedChina

Dell Sales Malaysia Sdn Bhd.Malaysia

Dell Singapore Pte. Ltd.Singapore

EqualLogic Japan Company LimitedJapan

Ocarina Networks India Pvt. Ltd.India

Perot Systems (Malaysia) Sdn. BhdMalaysia

Perot Systems (Shanghai) Consulting Co., LimitedChina

Perot Systems Business Process Solutions India Private LimitedIndia

Perot Systems Holdings Pte. LtdSingapore

PT Dell IndonesiaIndonesia

Source : GlobalData

Dell Inc.



Dell Inc. - Financial Ratios Financial Ratios - Capital Market RatiosDell Inc., Ratios based on current share price

Key Ratios 08-Jan-2013P/E (Price/Earnings) Ratio 5.72EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortization) 3.96Enterprise Value/Sales 0.27Enterprise Value/Operating Profit 3.79Enterprise Value/Total Assets 0.38Note: Above ratios are based on share price as of 08-Jan-2013, the above ratios are absolute numbersSource : GlobalData

Financial Ratios - Annual RatiosDell Inc., Annual Ratios

Key Ratios Unit/Currency 2008 2009 2010 2011 2012Equity Ratios

EPS (Earnings per Share) USD 1.31 1.25 0.73 1.35 1.88Book Value per Share USD 1.86 2.20 2.88 4.05 5.06Cash Value per Share USD 3.77 4.30 5.43 7.25 7.87

Profitability Ratios

Gross Margin % 19.09 17.93 17.51 18.53 22.25Operating Margin % 5.63 5.22 4.11 5.70 7.14Net Profit Margin % 4.82 4.06 2.71 4.28 5.63Profit Markup % 23.6 21.85 21.22 22.75 28.62PBIT Margin (Profit Before Interest & Tax) % 7.14PBT Margin (Profit Before Tax) % 6.26 5.44 3.83 5.45 6.83Return on Equity % 76.97 58.02 25.40 33.93 39.16Return on Capital Employed % 38.07 27.40 14.78 18.34 19.67Return on Assets % 10.69 9.35 4.26 6.83 7.84Return on Fixed Assets % 44.79 50.24 23.09 36.59 29.37Return on Working Capital % 254.06 60.28 41.10 36.75 59.50

Growth Ratios

Sales Growth % 6.47 -0.05 -13.42 16.24 0.94Operating Income Growth % 12.05 -7.27 -31.91 61.37 26.42EBITDA Growth % 14.41 -13.14 -39.11 65.51 26.57Net Income Growth % 14.09 -15.91 -42.17 83.88 32.52EPS Growth % 19.85 0.46 -30.18 55.05 37.99.00Working Capital Growth % -36.96 290.84 -0.13 80.47 -21.92

Cost Ratios

Operating Costs (% of Sales) % 94.37 94.78 95.89 94.30 92.86Administration Costs (% of Sales) % 12.33 11.40 11.77 11.76 13.73Interest Costs (% of Sales) % 0.31

Liquidity Ratios

Current Ratio Absolute 1.07 1.36 1.28 1.49 1.34Quick Ratio Absolute 1.01 1.30 1.22 1.42 1.27Cash Ratio Absolute 0.43 0.61 0.58 0.74 0.67

Leverage Ratios

Debt to Equity Ratio % 15.33 47.08 72.33 77.22 103.78

Dell Inc.



Net Debt to Equity Absolute -187.44 -148.47 -116.20 -101.93 -51.56Debt to Capital Ratio % 0.06 0.17 0.28 0.31 0.41Interest Coverage Ratio Absolute 2,319.90

Efficiency Ratios

Asset Turnover Absolute 2.22 2.31 1.57 1.59 1.39Fixed Asset Turnover Absolute 22.91 26.83 24.26 31.49 29.22Inventory Turnover Absolute 41.92 57.84 41.52 38.51 34.37Current Asset Turnover Absolute 3.08 3.03 2.18 2.12 2.11Capital Employed Turnover Absolute 15.97 14.31 9.38 7.92 6.96.00Working Capital Turnover Absolute 45.15 11.55 10.01.00 6.45 8.34Revenue per Employee USD 581,734Net Income per Employee USD 32,727Capex to Sales % 1.36 0.72 0.69 0.72 1.09R&D to Sales % 1 1.09 1.17 1.06 1.38Source : GlobalData

Financial Ratios - Interim RatiosDell Inc., Interim Ratios

Key Ratios Unit/Currency Oct-2011 Feb-2012 May-2012 Aug-2012 Nov-2012Interim EPS (Earnings per Share) USD 0.48 0.49 0.43 0.36 0.42Book Value per Share USD 4.55 4.83 5.06 5.31 5.62Gross Margin % 22.51 22.58 21.12 21.27 21.67Operating Margin % 7.32 7.43 5.81 5.71 6.22Net Profit Margin % 5.68 5.81 4.77 4.40 5.05Profit Markup % 29.05 29.16 26.77 27.01 27.66PBIT Margin (Profit Before Interest &Tax)

% 5.71

PBT Margin (Profit Before Tax) % 6.97 6.98 5.66 5.49 5.79Operating Costs (% of Sales) % 92.68 92.57 94.19 94.29 93.78Administration Costs (% of Sales) % 13.88 13.71 13.84 13.93 13.64Interest Costs (% of Sales) % 0.22Current Ratio Absolute 1.47 1.40 1.34 1.35 1.32Quick Ratio Absolute 1.40 1.33 1.27 1.28 1.24Debt to Equity Ratio % 92.85 95.36 103.78 96.17 86.61Net Debt to Equity Absolute -82.57 -58.09 -51.56 -40.77 -31.58Debt to Capital Ratio % 36.15 37.85 41.07 40.04 36.10Interest Coverage Ratio Absolute -2,375.00Source : GlobalData

Dell Inc.



Financial Ratios - Ratio Charts

Dell Inc., Ratio ChartsEPS Operating Margin

Return on Equity Return on Assets

Debt to Equity Ratio Current Ratio

Source : GlobalData

Dell Inc.



Recent Developments Dec 04, 2012 : Dell Joins Pecan Street To Expand Research In Smart Grid Technologies Dell Inc. joined the industry advisory council of Pecan Street Inc. As a member company, Dell will provide technology andIT expertise to Pecan Street to advance its work in energy big data. Pecan Street is currently conducting a consumerenergy research in Austin, Texas, including consumer electricity and gas use and solar and electric vehicle integration. Inmore than 400 homes, researchers are monitoring electricity and gas use from several circuits every 15 seconds. Such complex systems — requiring two-way communication between users, producers and transmitters of energy — relyon better data management systems to provide actionable information in real time. Dell's decision to join Pecan Streetbuilds on its announcement this fall of the Dell smart grid data management solution: a tested architecture that bundlesservers, storage, networking, and security services with better software into a ready-to-deploy solution that helps utilitycompanies better manage their distribution networks. Working with Pecan Street through the Dell Solution Centers, Dell is providing the nonprofit with equipment, including: • OptiPlex and Dell Precision workstations for the project's researchers • PowerConnect network switches • PowerVault direct-attached storage to enable easier research sharing • SonicWall back-up and recoveryand, • Data center infrastructure including a Dell rack, Dell power distribution unit, Dell uninterruptible power supply, and Dellrack-mounted switch and console. Nov 26, 2012 : PVHMC Selects Dell And Siemens Healthcare For 3D Mammography Pomona Valley (California) Hospital Medical Center (PVHMC) has selected Dell Inc. and Siemens Healthcare to providediagnostic image archiving and sharing services to address long-term data storage needs and reduce the complexity ofmanaging medical images. The move provides the hospital with a scalable and cost-effective storage and archival strategy for its new 3D breastimaging services. PVHMC will be using the archiving solution not just for 3D breast images but also for all other images,including cardiac, orthopedic and oncology clinical data, Dell said. Siemens Image Sharing & Archiving (ISA) solution, supported by Dell, provides a cloud-based, vendor-neutral imagearchive for storing and sharing radiology images and related clinical data. Siemens has incorporated Dell’s clinical datamanagement software into its ISA, and the Dell Cloud Clinical Archive provides redundant archiving support for SiemensHealthcare Computing Center.PVHMC, a 453-bed, acute-care hospital serving eastern Los Angeles and western SanBernardino counties, determined last year to make 3D breast imaging with tomosynthesis available ‘to every woman, everytime’. Using 3D images, breast tomosynthesis allows radiologists a new way to see the size, shape and location ofirregularities, which can potentially help them detect small tumors. However, with data storage needs up to 20 times higherthan traditional full-field digital mammography (FFDM), tomosynthesis is creating new challenges for mammographyproviders around data management and long-term storage, the company said.The Dell-Siemens solution allows for rapidscalability without the overhead of maintaining and upgrading an ever-expanding storage infrastructure. It offers a reliabledisaster recovery strategy with a pay-per-study pricing model, leading to significant cost-savings and risk mitigation longterm, the company added. Kent Hoyos, chief information officer of PVHMC, said, “The Dell-Siemens solution is a much more efficient way to manageclinical data going forward. By moving our data center from the hospital’s basement to the cloud, we will realize significantlong-term cost savings while continuing to offer state-of-the-art diagnostic services for not just our 3D mammography

Dell Inc.



images but for all of our patients’ images.” Dr Johnson Lightfoote, medical director of radiology at PVHMC, said, “Breast tomosynthesis is going to revolutionizemammography screening and, more importantly, it’s going to save lives. Partnering with Dell and Siemens will allowPVHMC’s radiologists and support staff to focus solely on the woman and her 3D breast images and not concern ourselveswith the storage of those images. This partnership assures us that the images stored in the cloud will be readily availablewhen needed.” Dr James Coffin, vice president and general manager of Dell Healthcare and Life Sciences, said, “Healthcare providersshouldn’t have to be experts in data storage and management. With Dell and Siemens, providers such as Pomona ValleyHospital Medical Center can focus on what they do best while allowing trusted partners to manage their ongoing datacenter needs.” Oct 01, 2012 : Dell Introduces Smart Grid Data Management Solution Dell Inc. announced the availability of a new bundled solution designed to help electric utility companies manage theirdistribution networks, minimize and potentially avoid outages and improve service to their customers through an applicationof smart grid technologies. The Dell Smart Grid Data Management Solution, tested in collaboration with OSIsoft, LLC, combines better computing,networking and storage to manage data and provide actionable results in real-time. Based on customer requirements andthe age of the data, Dell's solution provides three tiers of storage, enabling customers to optimize performance at a lowcost. Leading electric utilities are beginning to leverage phasor measurement units (PMUs) within their transmission anddistribution (T&D) systems to monitor and manage the health of the T&D system. PMU measurements provide data relatedto the stability of the electricity networkPMU output can indicate either a current or imminent outage condition. However thebenefits of these high-speed measurements are only realized when actionable information from the streaming data can beefficiently retained for later analysis. Dell's Smart Grid Data Management Solution, in conjunction with the OSIsoft PISystem, provides an efficient, scalable platform for this analysis. The solution's reference architecture features Dell PowerEdge 12th-generation servers with PCI Express Flash drives, andprovides data in near-real time to grid operators enabling them to quickly identify and assess the health of the distributiongrid. Dell Force10 10/40GbE network switches provide low-latency, high-bandwidth throughput to handle the data demandsof the entire system, and Dell Compellent's automated tiered storage makes relevant data readily accessible whileproviding the flexibility and scalability to store historical grid data for compliance purposes, according to Dell. Supporting the Dell Smart Grid Data Management Solution is a range of service choices that simplify the assessment,design, implementation, management and maintenance of the infrastructure. Depending on current business requirementsand the level of service desired, Dell Service professionals can provide factory, onsite, remote, modular and specializedservices that fit specific customer needs and budgets. Dell has teamed with OSIsoft to test the Dell Smart Grid Data Management Solution. The OSIsoft PI system is theenterprise infrastructure for streaming data and events. The PI system captures phasor and other T&D system performancedata, archives and contextualizes the data including real-time calculations and makes the data available to staff,applications and business systems. Sep 20, 2012 : Dell Donates $10m To Support Global Children’s Cancer Care And Research Dell Inc. announced that it is donating more than $10m in its current fiscal year to support children’s cancer research, andaddress the needs of children and families worldwide undergoing treatment. Through these global Powering the Possiblegrants, Dell is working with 10 nonprofit organizations, building on its multi-year commitment of technology, funds andteam-member volunteerism to support innovative pediatric cancer programs. Dell is working with eight other nonprofits around the world to address patients’ physical, mental and emotional needs asthey undergo treatment. These projects include: • L’Institut Gustave Roussy (IGR), in Paris. With Dell’s support, the hospital launched a project, 'CREA FORM', in itspediatrics department to keep children connected to their peers and their studies during cancer treatment. The initiativeincludes an online database of educational content, a series of creative arts workshops, webcams that allow children

Dell Inc.



hospitalized in sterile rooms to stay in contact with other children in the hospital, and a video project created by the childrenthemselves to introduce new patients to the hospital. • Second Affiliated Hospital of Huaxi (SCLF), in Chengdu, China. Though the most common forms of childhood leukemia inChina have very high cure rates, roughly 30% of children suffering from this disease gave up their treatment at SCLF in2010 due to lack of financial resources. With Dell’s grant, SCLF will provide free treatment to children who havesuccessfully completed their first year of therapy, but who are likely to suspend it for monetary reasons. • Ronald McDonald House Charities (RMHC), which works with Dell in 14 cities across the US. Because many familiesmust travel for their children’s cancer treatment, RMHC provides a 'home away from home' at little to no cost for familiesundergoing medical crisis. As part of their work together, Dell team members will also volunteer at RMHC chapters,providing much-needed help in addition to the financial support. Dell also collaborated with Causes.com to raise awareness of the deadly disease neuroblastoma — the most commoncancer in infants, accounting for roughly 15% of all childhood-cancer deaths. This fall, people visiting Dell’s campaign canwatch a video to learn how technology is accelerating pediatric cancer treatment. Dell will donate $1 for every viewer, up to$30,000, to the NMTRC, a US network of cancer trials conducted by researchers and oncologists pioneering new therapiesfor children. Dell announced a partnership with the Translational Genomic Research Institute (TGen) and the Neuroblastoma andMedulloblastoma Translational Research Consortium (NMTRC) in 2011 to support the world’s first FDA-approvedpersonalized medicine clinical trial for pediatric cancer. In that trial, a Dell high-performance computing system reduced thetime needed to analyze pediatric cancer tumor cells from a week to less than a day. Dell’s donation in 2012 includes cloud-computing technology that will enable doctors to collaborate virtually, identifypersonalized treatment and begin administering it within days — a process that before took months. And with theseimprovements, physicians are expanding the number of children participating in the trial. Trisa Thompson, vice president, corporate responsibility, Dell, said, “Every day in a child’s life is precious — that’s whytechnology that can accelerate cancer treatment is so important. We’re honored to bring our technology, team membersupport and funding to help the fight against childhood cancer. In partnership with families, nonprofits and the medicalcommunity, we know Dell can make a difference.” Aug 27, 2012 : Dell Partners With SoloHealth To Manufacture High-tech Health Care Kiosks SoloHealth, Inc., a consumer-driven healthcare technology company, entered a strategic partnership to utilize Dell Inc.’sOEM Solutions technology, development and deployment expertise for its next-generation SoloHealth Station consumerkiosk. Under terms of the partnership, Dell will produce and deliver thousands of SoloHealth Station kiosks to retaillocations nationwide beginning this fall. The SoloHealth Station is an interactive, comprehensive health and wellness screening kiosk for consumers placed inhigh-traffic retail locations or strategic, high-volume places like corporate campuses or hospitals. The SoloHealth Stationprovides health screenings for vision, blood pressure, weight, and body mass index, a symptom checker as well as anoverall health assessment free of charge. For consumers who want to review their assessment with a medical professional,SoloHealth can connect consumers to local professionals through their databases, helping people enter the mostappropriate and accurate point in the health care system. Joyce Mullen, vice president and general manager, OEM Solutions and Global Alliances, at Dell, said, "We’re pleased tohelp SoloHealth bring their innovative kiosks to the public and empower consumers to take control of their health. Byproviding SoloHealth with a single source for the financing, hardware and deployment of its kiosk, we give them thereliability and flexibility to expand into new opportunities." Bart Foster, CEO and founder of SoloHealth, said, “Dell is a perennial brand and leader in technology solutions andinnovation, and this partnership will allow us to produce and deliver the most innovative and comprehensive consumerhealth and wellness kiosk available to thousands of retail locations nationwide. We strive daily to deliver a superior productand service, and this partnership with Dell allows us to continue on that promise.” Jun 13, 2012 : NextGen, Dell And Puerto Rico Forms Alliance NextGen Healthcare Information Systems, LLC (NextGen), a provider of healthcare information systems and connectivitysolutions and Dell announced an agreement with Puerto Rico Hospital Supply, Inc. (Puerto Rico) to jointly market and

Dell Inc.



deliver advanced technology solutions and services to medical practices of all sizes and physician networks throughoutFlorida, the Caribbean, and opportunity to expand into the Central and South American markets. Under the agreement, Puerto Rico Hospital Supply, Inc. will market, sell and support NextGen ambulatory EHR, NextGenpractice management, and other NextGen solutions as components of Dell’s electronic medical records (EMR) platform forhospitals and physicians. Using the latest cloud technology platform, Dell will provide hosting services for the NextGenapplications to simplify access and data management for Puerto Rico Hospital Supply, Inc. clients. Scott Decker, president of NextGen Healthcare, said, “Puerto Rico Hospital Supply Inc.’s presence in the Caribbean andLatin America, coupled with Dell’s global market reach, allows NextGen Healthcare to introduce our solutions and expandour market reach into these new markets. This opportunity presents a new revenue stream for our market-leadingadvanced technological solutions, allowing us to capture additional market share beyond the U.S. Puerto Rico HospitalSupply, Inc., Dell and NextGen Healthcare are committed to delivering leading-edge solutions that will assist healthcareproviders in the delivery of higher quality, better coordinated patient care.” Dr James Coffin, vice president and general manager of Dell Healthcare and Life Sciences, said, “Dell is committed tosimplifying access and use of EMR for providers of all sizes, and we are pleased to work with NextGen to expand theavailability of this solution. With secure healthcare cloud solutions, we can help providers adopt important technologyupgrades – such as EMR systems – that otherwise would be resource and cost prohibitive.” Felix Santos, president of Puerto Rico Hospital Supply, Inc, said, “Puerto Rico Hospital Supply, Inc. looks forward tooffering our customers advanced, top-tier healthcare IT solutions. We believe our partnership with Dell and NextGenHealthcare will empower Puerto Rico and the many other markets we serve to deliver higher quality coordinated patientcare.” Jun 07, 2012 : Agfa HealthCare And Dell Form Strategic Alliance For Cloud-Based Image Management Solution ForUS Market Agfa HealthCare NV selected Dell Inc., of Round Rock, Texas, to host its cloud clinical archive portfolio, including theImaging Clinical Information System (ICIS) platform. By extending its existing managed services platform with the newavailability of ICIS in the cloud, Agfa HealthCare is providing its US customers simplified image archiving, management,and viewing that supports healthcare facilities' needs to image-enable the EMR. With this cost-effective, innovative cloud solution, Agfa HealthCare addresses the need for a comprehensive patient record.Because Agfa HealthCare provides comprehensive service and support, organizations can now focus their expertise morefully on diagnosis, treatment, and care delivery. By delivering a cloud-based solution for the core components of ICIS - IMPAX Data Center and the XERO TechnologyViewer - Agfa HealthCare is able to provide ‘anytime, anywhere’ access to and fast viewing of securely stored patientmedical images. The solution enables quick desktop streaming to deliver the comprehensive imaging services platformtoday's busy providers demand. Though previously available for installations in private clouds at customer data centers, theavailability of ICIS as a totally managed service in the cloud expands the clinical information system options available tohealthcare providers. In addition to ICIS, Agfa HealthCare will also offer its US customers the Dell Cloud Clinical Archive, providing offsiteexpansion for quick access to archived data in the event of a natural disaster or system downtime. Agfa HealthCare's UScustomers will also be offered the Dell Cloud Clinical Recovery, designed to provide business continuity and disasterrecovery for organizations with an existing onsite archive. Dell manages one of the world's largest cloud-based clinicalarchives, with more than 72 million clinical studies, five billion diagnostic imaging objects and supporting more than 800clinical sites. By taking ownership of the day-to-day management of expanding, complex IT systems -- a major challenge for imagingdepartments and facilities -- Agfa HealthCare's cloud portfolio supports significant financial benefits, including highreturn-on-investment and expense predictability. The offerings allow organizations to focus IT resources on technologydevelopment, strategic services, and patient care support-leaving the ‘heavy lifting’ to Agfa HealthCare's Cloud andManaged Services. Michael Green, president and CEO of Americas Region, Agfa HealthCare, said, "By leveraging the ability of AgfaHealthCare to host our innovative ICIS, Imaging Clinical Information System, securely in the cloud.Healthcare organizationscan now better meet their requirements to provide an enterprise-wide imaging platform and longitudinal medical imagingrecord access. We strategically selected Dell in this initiative so that our customers can count on the excellent experience

Dell Inc.



and success that Dell brings in operating technology services for numerous and diverse healthcare delivery systems." Dr James Coffin, vice president and general manager of Dell Healthcare and Life Sciences, said, "Providing AgfaHealthCare's innovative and leading ICIS solution in the cloud is a tremendous opportunity for Dell. With our combinedexperiences, we are creating the foundation on which healthcare will move forward, transitioning from treating illness tomanaging wellness. Adding images to the EMR is a key step in providing a truly patient-centric view for every medicalspecialist and provider across the healthcare enterprise." Jun 05, 2012 : Dell Rolls Out Free Consumer Laptop Battery Recycling Program Across India Dell Inc. launched its free consumer laptop battery recycling program for its consumers across all major metros and tier 1cities in India. The program will now be available at every participating Dell retailer outlet from June 05, 2012, in an effort toincrease awareness and participation from consumers on recycling e-waste in India. Dell has designed this program to encourage responsible disposal of non-working laptop batteries, thereby preventinge-waste from entering landfills. Dell will now offer a discount of INR500 towards the purchase of a new Dell li-ion laptopbattery when its consumers return their non-working li-ion batteries from Dell Inspiron, XPS and Vostro laptop ranges. Mahesh Bhalla, executive director & general manager, consumer & SMB at Dell India, said, "Dell has always been at theforefront of sustainability initiatives in India and across the globe. Today, on World Environment Day, we are glad toannounce a program that offers a free, efficient and convenient way for Dell consumers to recycle their laptop batteries atany time. We also offer to recycle other branded products with the purchase of any new Dell product. We are happy thatthe Indian government has prioritized the safe disposal of e-waste through the recently enforced law. Dell will support thesame through its various take-back options for customers, providing them with an effective means to facilitate responsibleproduct retirement." Dell's e-waste initiatives In an effort to encourage consumer personal computers' recycling in India, Dell launched a special discount couponprogram where consumers could send their old Dell computers to Dell for free recycling and redeem a coupon of INR1000on the purchase of their next Dell computer.

Dell Inc.



AppendixThe data and analysis within this report is driven by GlobalData.GlobalData gives you key information to drive sales, investment and deal making activity in your business.The key industries include Alternative Energy, Construction, Oil & Gas, Clean Technology, Technology andTelecommunication, Healthcare, Power, Financial Services, Retail & Consumer Packaged Goods and Transport. MethodologyGlobalData company reports are based on a core set of research techniques which ensure the best possible level of qualityand accuracy of data. The key sources used include:Company WebsitesCompany Annual ReportsSEC FilingsPress ReleasesProprietary Databases Currency Codes

Currency Code CurrencyUSD U.S. DollarsGlobalData

Ratio Definitions

Capital Market RatiosCapital Market Ratios measure investor response to owning a company's stock and also the cost of issuingstock.Price/EarningsRatio (P/E)

Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annualincome earned per share. It is a financial ratio used for valuation: a higher P/E ratiomeans that investors are paying more for each unit of income, so the stock is moreexpensive compared to one with lower P/E ratio. A high P/E suggests that investors areexpecting higher earnings growth in the future compared to companies with a lower P/E.Price per share is as of previous business close, and EPS is from latest annual report.

Calculation: Price per Share / Earnings per ShareEnterpriseValue/Earningsbefore Interest, Tax,Depreciation &Amortization(EV/EBITDA)

Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used inparallel with, or as an alternative to, the P/E ratio. The main advantage of EV/EBITDAover the PE ratio is that it is unaffected by a company's capital structure. It compares thevalue of a business, free of debt, to earnings before interest. Price per share is as ofprevious business close, and shares outstanding last reported. Other items are fromlatest annual report.Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income +

Interest + Tax + Depreciation + Amortization)EnterpriseValue/Sales

Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs tobuy the company's sales. EV/Sales is seen as more accurate than Price/Sales becausemarket capitalization does not take into account the amount of debt a company has,which needs to be paid back at some point. Price per share is as of previous businessclose, and shares outstanding last reported. Other items are from latest annual report.

Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / SalesEnterpriseValue/OperatingProfit

Enterprise Value/Operating Profit measures the company's enterprise value to theoperating profit. Price per share is as of previous business close, and shares outstandinglast reported. Other items are from latest annual report.

Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating Income

EnterpriseValue/Total Assets

Enterprise Value/Total Assets measures the company's enterprise value to the totalassets. Price per share is as of previous business close, and shares outstanding lastreported. Other items are from latest annual report.

Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total AssetsDividend Yield

Dividend Yield shows how much a company pays out in dividends each year relative toits share price. In the absence of any capital gains, the dividend yield is the return oninvestment for a stock.Calculation: Annual Dividend per Share / Price per Share

GlobalData

Dell Inc.



Equity RatiosThese ratios are based on per share value.Earnings perShare (EPS)

Earnings per share (EPS) is the portion of a company's profit allocated to eachoutstanding share of common stock. EPS serves as an indicator of a company'sprofitability.Calculation: Net Income / Weighted Average Shares

Dividend perShare

Dividend is the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Dividend Cover

Dividend cover is the ratio of company's earnings (net income) over the dividend paid toshareholders.Calculation: Earnings per share / Dividend per share

Book Value perShare

Book Value per Share measure used by owners of common shares in a firm to determinethe level of safety associated with each individual share after all debts are paidaccordingly.Calculation: (Shareholders Equity - Preferred Equity) / Outstanding Shares

Cash Value perShare

Cash Value per Share is a measure of a company's cash (cash & equivalents on thebalance sheet) that is determined by dividing cash & equivalents by the total sharesoutstanding.Calculation: Cash & equivalents / Outstanding Shares

GlobalData

Profitability RatiosProfitability Ratios are used to assess a company's ability to generate earnings, based on revenues generatedor resources used. For most of these ratios, having a higher value relative to a competitor's ratio or the sameratio from a previous period is indicative that the company is doing well.Gross Margin

Gross margin is the amount of contribution to the business enterprise, after paying fordirect-fixed and direct-variable unit costs.Calculation: {(Revenue-Cost of revenue) / Revenue}*100

OperatingMargin

Operating Margin is a ratio used to measure a company's pricing strategy and operatingefficiency.Calculation: (Operating Income / Revenues) *100

Net ProfitMargin

Net Profit Margin is the ratio of net profits to revenues for a company or businesssegment - that shows how much of each dollar earned by the company is translated intoprofits.Calculation: (Net Profit / Revenues) *100

Profit Markup

Profit Markup measures the company's gross profitability, as compared to the cost ofrevenue.Calculation: Gross Income / Cost of Revenue

PBIT Margin(Profit BeforeInterest & Tax)

Profit Before Interest & Tax Margin shows the profitability of the company before interestexpense & taxation.Calculation: {(Net Profit+Interest+Tax) / Revenue} *100

PBT Margin(Profit BeforeTax)

Profit Before Tax Margin measures the pre-tax income over revenues.Calculation: {Income Before Tax / Revenues} *100

Return onEquity

Return on Equity measures the rate of return on the ownership interest (shareholders'equity) of the common stock owners.Calculation: (Net Income / Shareholders Equity)*100

Return onCapitalEmployed

Return on Capital Employed is a ratio that indicates the efficiency and profitability of acompany's capital investments. ROCE should always be higher than the rate at which thecompany borrows; otherwise any increase in borrowing will reduce shareholders'earnings.Calculation: EBIT / (Total Assets – Current Liabilities)*100

Return on Return on Assets is an indicator of how profitable a company is relative to its total assets,the ratio measures how efficient management is at using its assets to generate earnings.

Dell Inc.



Assets

Calculation: (Net Income / Total Assets)*100

Return on FixedAssets

Return on Fixed Assets measures the company's profitability to its fixed assets (property,plant & equipment).Calculation: (Net Income / Fixed Assets) *100

Return onWorking Capital

Return on Working Capital measures the company's profitability to its working capital.Calculation: (Net Income / Working Capital) *100

GlobalData

Dell Inc.



Cost RatiosCost ratios help to understand the costs the company is incurring as a percentage of sales.Operating costs(% of Sales)

Operating costs as percentage of total revenues measures the operating costs that acompany incurs compared to the revenues.Calculation: (Operating Expenses / Revenues) *100

Administrationcosts (% ofSales)

Administration costs as percentage of total revenue measures the selling, general andadministrative expenses that a company incurs compared to the revenues.Calculation: (Administrative Expenses / Revenues) *100

Interest costs (%of Sales)

Interest costs as percentage of total revenues measures the interest expense that acompany incurs compared to the revenues.Calculation: (Interest Expenses / Revenues) *100

GlobalData

Liquidity RatiosLiquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally,the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-termdebts. A company's ability to turn short-term assets into cash to cover debts is of the utmost importance whencreditors are seeking payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratiosto determine whether a company will be able to continue as a going concern.Current Ratio

Current Ratio measures a company's ability to pay its short-term obligations. The ratiogives an idea of the company's ability to pay back its short-term liabilities (debt andpayables) with its short-term assets (cash, inventory, receivables). The higher the currentratio, the more capable the company is of paying its obligations. A ratio under 1 suggeststhat the company would be unable to pay off its obligations if they came due at that point.Calculation: Current Assets / Current Liabilities

Quick Ratio

Quick ratio measures a company's ability to meet its short-term obligations with its mostliquid assets.Calculation: (Current Assets - Inventories) / Current Liabilities

Cash Ratio

Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. Itonly looks at the most liquid short-term assets of the company, which are those that canbe most easily used to pay off current obligations. It also ignores inventory andreceivables, as there are no assurances that these two accounts can be converted tocash in a timely matter to meet current liabilities.Calculation: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}

GlobalData

Leverage RatiosLeverage ratios are used to calculate the financial leverage of a company to get an idea of the company'smethods of financing or to measure its ability to meet financial obligations. There are several different ratios, butthe main factors looked at include debt, equity, assets and interest expenses.Debt to EquityRatio

Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratioalso depends on the industry in which the company operates. For example,capital-intensive industries tend to have a higher debt-equity ratio.Calculation: Total Liabilities / Shareholders Equity

Debt to CapitalRatio

Debt to capital ratio gives an idea of a company's financial structure, or how it is financingits operations, along with some insight into its financial strength. The higher thedebt-to-capital ratio, the more debt the company has compared to its equity. Thisindicates to investors whether a company is more prone to using debt financing or equityfinancing. A company with high debt-to-capital ratios, compared to a general or industryaverage, may show weak financial strength because the cost of these debts may weighon the company and increase its default risk.Calculation: {Total Debt / (Total assets - Current Liabilities)}

InterestCoverage Ratio

Interest Coverage Ratio is used to determine how easily a company can pay interest onoutstanding debt, calculated as earnings before interest & tax by interest expense.Calculation: EBIT / Interest Expense

GlobalData

Dell Inc.



Efficiency RatiosEfficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking atmaximizing its use of resources.Fixed AssetTurnover

Fixed Asset Turnover ratio indicates how well the business is using its fixed assets togenerate sales. A higher ratio indicates the business has less money tied up in fixedassets for each currency unit of sales revenue. A declining ratio may indicate that thebusiness is over-invested in plant, equipment, or other fixed assets.Calculation: Net Sales / Fixed Assets

Asset Turnover

Asset turnover ratio measures the efficiency of a company's use of its assets ingenerating sales revenue to the company. A higher asset turnover ratio shows that thecompany has been more effective in using its assets to generate revenues.Calculation: Net Sales / Total Assets

Current AssetTurnover

Current Asset Turnover indicates how efficiently the business uses its current assets togenerate sales.Calculation: Net Sales / Current Assets

InventoryTurnover

Inventory Turnover ratio shows how many times a company's inventory is sold andreplaced over a period. A low turnover implies poor sales and, therefore, excessinventory. A high ratio implies either strong sales or ineffective buying.Calculation: Cost of Goods Sold / Inventory

Working CapitalTurnover

Working Capital Turnover is a measurement to compare the depletion of working capitalto the generation of sales. This provides some useful information as to how effectively acompany is using its working capital to generate sales.Calculation: Net Sales / Working Capital

CapitalEmployedTurnover

Capital employed turnover ratio measures the efficiency of a company's use of its equityin generating sales revenue to the company.Calculation: Net Sales / Shareholders Equity

Capex to sales

Capex to Sales ratio measures the company's expenditure (investments) on fixed andrelated assets' effectiveness when compared to the sales generated.Calculation: (Capital Expenditure / Sales) *100

Net income perEmployee

Net income per Employee looks at a company's net income in relation to the number ofemployees they have. Ideally, a company wants a higher profit per employee possible, asit denotes higher productivity.Calculation: Net Income / No. of Employees

Revenue perEmployee

Revenue per Employee measures the average revenue generated per employee of acompany. This ratio is most useful when compared against other companies in the sameindustry. Generally, a company seeks the highest revenue per employee.Calculation: Revenue / No. of Employees

Efficiency Ratio

Efficiency Ratio is used to calculate a bank's efficiency. An increase means the companyis losing a larger percentage of its income to expenses. If the efficiency ratio is gettinglower, it is good for the bank and its shareholders.Calculation: Non-interest expense / Total Interest Income

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Dell Inc.



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