China ICT spend overview

Business Accelerator Client Buying Power Solution

Didier Andrieu

March 2015

Foreword

Trivia Marketing International has developed a great knowledge and expertise to determine the companiesrsquo IT buying powers in more than 35 countries in the world In the case of China we conducted a survey from February to August 2014 with more than 12000 IT decision makers covering every type of industry and company employee size

We propose to return to you some of the results of our research embellished with some historical and economic data on this large rapidly developing country

We hope to give you food for thought We remain at your disposal for any further information

Enjoy the reading

Trivia Marketingrsquos team

Trivia Marketing International copy2015

From one side of the world to another

A New Vision for making faster business growth

All languages

All industries

All sizes

A New and Innovative methodology designed to

Support strategical marketing plans

Boost sales efficiency and perfomance

Improve Business Intelligence

An invitation to our Client Buying Power solution preview

Trivia Marketing International copy2015

What do we deliver 5 guaranteed budgets with a contractual qualitative rate of 80 minimum

IT product expenses Including desktop laptop thin client tablets printer serveur storage peripherals

Services expenses Including Education Infra cloud SecuritySupport Services Applications BPO Support deployment

Product and telecom services expenses

Including Enterprise networks Service provider Equipment Phones Smartphones

FixedWireless voice Fixed Wireless data

Software and application expenses Including System Mgt Security Software

Data Mgt Applications

BUDGET SERVICES BUDGET TELECOM

BUDGET SOFTWARE BUDGET HARDWARE

TOTAL ICT BUDGET 119913119932119915119918119916119931119930(119919119938119955119941119960119938119955119942 + 119930119952119943119957119960119938119955119942 + 119930119942119955119959119946119940119942119956 + 119931119942119949119942119940119952119950)

4 Trivia Marketing International copy2015

What will you get in returns amp results NEW segmentation to Prioritize Existing and New Customers

Data Management

Response Analysis

Retain these best customers Lead gen these

prospects

Retain and up-sell these segments as they had explosive

growth in Client spend over the last 3 years and could

become best customers

Cherry pick the Affiliates to

develop based on sites that are not customers and

products that are under penetrated

Develop these low revenue customers

with the best spend potential

Hig

h

Me

diu

m

Lo

w o

r U

nk

no

wn

Tota

l E

st

ICT

Sp

en

d

Average Annual Client Indicator

2 7

5 12

4 6

9 32

8 14

7 1

Low Medium High

3 1

6 7

1 20

5 Trivia Marketing International copy2015

Agenda

7 China History insights

8 Some gross financial indicators

9 Measuring Chinese Economic Efficiency

10 Largest business cities

11 Annual Buying Power in traditional regions

12 ICT sector analysis

13 ICT spend insights 13 China stands in 10th position worldwide regarding IT spends per employee 14 Software and Piracy status 15 The cloud 16 National ICT budget 17 Computer highlights 18 Total annual ICT spend by largest cities 19 Total annual ICT spend by province 20 Trivia Marketingrsquos ICT spend accuracy validation against IDC amp Gartner

21 Trivia Marketing geographical expertise

22 Benefits from Trivia Marketingrsquos solution

A quick tour of China in 15 slides

Trivia Marketing International copy2015

China History Insights

Trivia Marketing International copy2015 7

Population of China The current population of the Peoplersquos Republic of China is estimated to be approximately 1354 billion people which is an increase of about 001 from the last record of the population China is the most populous country in the entire world even though the population gap with India is growing closer every year Historically over the last half of a century though the population of China has always been greater than the population of India Based on the total land area and the total population of the country the population density of the country is about 3633 people per square meter Languages in China Standard Chinese (known in China as Putonghua) is the official national spoken language for the mainland Language laws of China do not apply to either Hong Kong or Macau and hence have different official languages (Cantonese) than the mainland China has 56 recognized ethnic groups and they speak a variety of different languages The languages of China are collectively known as Zhōngyǔ(simplified Chinese 中语 traditional Chinese 中語 pinyin Zhōngyǔ) and their study is considered a distinct academic discipline in China Zhōngyǔ span eight primary language families are diverse morphologically and phonetically and may be mutually unintelligible to each other China has 292 living languages and 1 extinct language (Jurchen) according to Ethnologues

History of China The history of China goes back to the ancient civilization ndash one of the worlds earliest ndash that flourished in the fertile basin of the Yellow River in the North China Plain For millennia Chinas political system was based on hereditary monarchies known as dynasties beginning with the semi-mythological Xia of the Yellow River basin (c 2000 BCE) Since 221 BCE when the Qin Dynasty first conquered several states to form a Chinese empire the country has expanded fractured and been reformed numerous times The Republic of China (ROC) overthrew the last dynasty in 1911 and ruled the Chinese mainland until 1949 After the defeat of the Empire of Japan in World War II the Communist Party defeated the nationalist Kuomintang in mainland China and established the Peoples Republic of China in Beijing on 1 October 1949 while the Kuomintang relocated the ROC government to its present capital of Taipei

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2012

6671 7152

8183

9164 9812

1051

1135 1205

1263 1304

1338 1351

Population (millions)

Some gross financial indicators

IMF 2014 forecasts

Trivia Marketing International copy2015 8

GDP growth The IMF has just released its forecast for the year 2015 and it shows a GDP growth projection of 73 in line with estimates of Chinese officials In average 2010-2014 the Nation investment rate is 482 and 509 for the savings rate - government investment (rate - 477 and 50 in 2014 local authorities businesses and households) - figures that have no equivalent in the world China wages The unemployment rate is a flat rate set at 41 of the labor force which is contrary to the facts A 7-8 rate should be closer to the reality The standard workweek in China is 40 hours (eight hours per day five days per week) Minimum Chinese wage ($264) sit in the middle between the lowest (Bangladesh - $38) and the highest (Japan - $1319) Average annual wage increase 2001-2011 is close to 15

Sources IMF MOHRSS ndash 2013 ndash in yuan and China statistical yearbook 2013

1000 ndash 1100 yuan

1101 ndash 1200 yuan

1201 ndash 1300 yuan

1301 ndash 1400 yuan

1401 ndash 1500 yuan

1501 ndash 1600 yuan

Some gross financial indicators

Measuring Chinese Economic Efficiency

Trivia Marketing International copy2015 9

Business registration and economic output

In recent years economic output in China has been decreasing This is in line with the downward trend of the global economy weakening global demand However in Chinarsquos case there are also other internal factors that come into play In China ever-rising production costs have led to a continuous drop of output efficiency This in turn pushes down the value-added of industry

When comparing the registered capital and GDP per business entity one can see that a large capital input can only produce a small output Therefore while undergoing economic reforms China must adopt the most appropriate type of reform for itself Purely turning to ldquohigh value-addedrdquo industries may not adequately accommodate the large labor force in China Blindly raising capital input does not guarantee a result of high value-added economy or rapid technology advancement Other input factors must also be properly employed Otherwise the result will only be a drop in productivity leading to a weakening of the economyrsquos overall competitiveness

Sources CEIC 082014

The average registered capital per business entity kept reaching new heights in the past few years This fact not only indicates that a larger capital input is needed for economic development but also reflects an increasing cost of production

With the structural transformation of Chinarsquos economy underway economic development now focuses on high value-added industries As a result we see a growing need for new capital A capital-intensive economy has become the new direction of Chinarsquos future development This means that the greatest challenge in the upcoming future will be labor input with a higher education level and better skills

167

156147

133

094095093087

00

02

04

06

08

10

12

14

16

18

00

01

02

03

04

05

06

07

08

09

10

061

2013

056

2012

063

2011 2010

065

GDP per social capital

Social capital by business entity

GDP per business entity Business Registration and economic

output

China Largest business cities

Mongolia

Russia

Japan South Korea

India

BEIJING Kashi

Uumlruumlmqi

Shiquanhe

Lhasa

Xining Lanzhou

Yinchuan

Hailar

Harbin

Changchun

Taiyuan

Qingdao

Zhengzhou

Taipei

Nanchang

Fuzhou

Hefei

Hong Kong

Changsha

Haikou

Nanning

Guiyang

Kunming

TIANJIN

SHANGHAI

GUANGZHOU

CHENG DOU

SHEN YANG

NAN JING

CHONGQING

SHENZHEN

HANGZHOU WU HAN

XI AN

10 Trivia Marketing International copy2015

$280 036 Million of ICT spends in 2014

Trivia Marketing International copy2015 11

Annual ICT Spends Sum of (Hardware Software Services Telecom) spend

East $ 111788 M

Northeast $ 19999 M

Northwest $ 17701 M

South Central $ 75500 M

North $ 32081 M

Southwest $ 22967 M

ICT spend budgets per region shown on this slide are calculated through Trivia Marketing solution adding each ICT company spend per region

ICT sector

Trivia Marketing International copy2015 12

The ICT sector is a pillar of the Chinese economy and helps to increase the domestic demand of the country which is closely followed by the Chinese government

Economic importance 2008 2011 2012 Evolution

GDP RMB bn 31405 51947 + 6541

GDP growth real 96 78 - 18 pts

GDP information transmission computer services and software RMB bn 786 978 + 2443

GDP information transmission computer services and software RMB bn of total 250 207 - 043 pts

ICT revenue growth 118 89 - 29pts

ICT Exports and Imports 2005 2011 2012 Evolution

ICT services exports USD bn 222 685 + 20855

ICT goods imports 253 18 - 73 pts

ICT goods exports 307 268 - 39 pts

ICT services exports 249 349 + 10 pts

Export of ICT services has experienced a period of growth above 20 before falling in 2009 However today the ICT market is ironed at a rate of double digit growth ICT represents now a third of countryrsquos exports of services

What you need to know about the ICT market The ICT market is relatively closed to competition and barriers to entry are rather high Foreign companies are only allowed to participate by joint-ventures and the capital held by foreign stockholders is limited to 50 for any company in the industry

ICT Spend insights TOP 10 countries China stands in 10th position worldwide regarding ICT spends per employee

The average level of development of most companies informatization in China is still in the early implementation stage Although IT hardware product average depreciable life is usually 5 years and IT software average depreciable life is

usually 10 years the actual depreciable life is higher than the regular number in many Chinese companies The unit price of IT hardware is tending downward on the Chinese market The average unit price of PC is about ￥3000+ RMB the average unit price of notebook is about￥5000+ RMB

There is an undeniable fact that pirated software have been available for years in China When China awakes she spends $370 billion to the cloud The turnover of the IT industry in China reached 1757 billion yuan ($2805 billion) in late 2013

Trivia Marketing International copy2015 13

ICT Spend insights

Trivia Marketing International copy2015 14

Softwarersquos and Piracy 2013-2014 status

The Chinese government as central as local levels has made efforts to eradicate software piracy in its various branches This has resulted in an investment of around 216 billion yuan ($34471 M) in software over the past three years

The official news agency Xinhua reported that since the Chinese government launched its anti-piracy project among its branches in 2010 until its conclusion in April he bought 3230000 units of office software according to the national copyright administration (NCA) It was reported in July 2012 that more than 1 billion yuan ($15959 M) was spent by the Chinese government to buy licensed softwares This amount was distributed to the end of June 2012 between 158823 operating system licenses 506693 copies of Office software as well as antivirus and other specialized softwares

This announcement is timely for China while an American commission released a study showing that the violation of the intellectual property of US companies by foreign groups costs the United States $ 300 billion (234 billion euros) every year According to the report China is responsible for 50-80 of these intellectual property thefts May 20th 2014 Reuters agency reports the Central Government Procurement Center issued the ban on installing Windows 8 on Chinese government computers as part of a notice on the use of energy-saving productshellip

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

Foreword

Trivia Marketing International has developed a great knowledge and expertise to determine the companiesrsquo IT buying powers in more than 35 countries in the world In the case of China we conducted a survey from February to August 2014 with more than 12000 IT decision makers covering every type of industry and company employee size

We propose to return to you some of the results of our research embellished with some historical and economic data on this large rapidly developing country

We hope to give you food for thought We remain at your disposal for any further information

Enjoy the reading

Trivia Marketingrsquos team

Trivia Marketing International copy2015

From one side of the world to another

A New Vision for making faster business growth

All languages

All industries

All sizes

A New and Innovative methodology designed to

Support strategical marketing plans

Boost sales efficiency and perfomance

Improve Business Intelligence

An invitation to our Client Buying Power solution preview

Trivia Marketing International copy2015

What do we deliver 5 guaranteed budgets with a contractual qualitative rate of 80 minimum

IT product expenses Including desktop laptop thin client tablets printer serveur storage peripherals

Services expenses Including Education Infra cloud SecuritySupport Services Applications BPO Support deployment

Product and telecom services expenses

Including Enterprise networks Service provider Equipment Phones Smartphones

FixedWireless voice Fixed Wireless data

Software and application expenses Including System Mgt Security Software

Data Mgt Applications

BUDGET SERVICES BUDGET TELECOM

BUDGET SOFTWARE BUDGET HARDWARE

TOTAL ICT BUDGET 119913119932119915119918119916119931119930(119919119938119955119941119960119938119955119942 + 119930119952119943119957119960119938119955119942 + 119930119942119955119959119946119940119942119956 + 119931119942119949119942119940119952119950)

4 Trivia Marketing International copy2015

What will you get in returns amp results NEW segmentation to Prioritize Existing and New Customers

Data Management

Response Analysis

Retain these best customers Lead gen these

prospects

Retain and up-sell these segments as they had explosive

growth in Client spend over the last 3 years and could

become best customers

Cherry pick the Affiliates to

develop based on sites that are not customers and

products that are under penetrated

Develop these low revenue customers

with the best spend potential

Hig

h

Me

diu

m

Lo

w o

r U

nk

no

wn

Tota

l E

st

ICT

Sp

en

d

Average Annual Client Indicator

2 7

5 12

4 6

9 32

8 14

7 1

Low Medium High

3 1

6 7

1 20

5 Trivia Marketing International copy2015

Agenda

7 China History insights

8 Some gross financial indicators

9 Measuring Chinese Economic Efficiency

10 Largest business cities

11 Annual Buying Power in traditional regions

12 ICT sector analysis

13 ICT spend insights 13 China stands in 10th position worldwide regarding IT spends per employee 14 Software and Piracy status 15 The cloud 16 National ICT budget 17 Computer highlights 18 Total annual ICT spend by largest cities 19 Total annual ICT spend by province 20 Trivia Marketingrsquos ICT spend accuracy validation against IDC amp Gartner

21 Trivia Marketing geographical expertise

22 Benefits from Trivia Marketingrsquos solution

A quick tour of China in 15 slides

Trivia Marketing International copy2015

China History Insights

Trivia Marketing International copy2015 7

Population of China The current population of the Peoplersquos Republic of China is estimated to be approximately 1354 billion people which is an increase of about 001 from the last record of the population China is the most populous country in the entire world even though the population gap with India is growing closer every year Historically over the last half of a century though the population of China has always been greater than the population of India Based on the total land area and the total population of the country the population density of the country is about 3633 people per square meter Languages in China Standard Chinese (known in China as Putonghua) is the official national spoken language for the mainland Language laws of China do not apply to either Hong Kong or Macau and hence have different official languages (Cantonese) than the mainland China has 56 recognized ethnic groups and they speak a variety of different languages The languages of China are collectively known as Zhōngyǔ(simplified Chinese 中语 traditional Chinese 中語 pinyin Zhōngyǔ) and their study is considered a distinct academic discipline in China Zhōngyǔ span eight primary language families are diverse morphologically and phonetically and may be mutually unintelligible to each other China has 292 living languages and 1 extinct language (Jurchen) according to Ethnologues

History of China The history of China goes back to the ancient civilization ndash one of the worlds earliest ndash that flourished in the fertile basin of the Yellow River in the North China Plain For millennia Chinas political system was based on hereditary monarchies known as dynasties beginning with the semi-mythological Xia of the Yellow River basin (c 2000 BCE) Since 221 BCE when the Qin Dynasty first conquered several states to form a Chinese empire the country has expanded fractured and been reformed numerous times The Republic of China (ROC) overthrew the last dynasty in 1911 and ruled the Chinese mainland until 1949 After the defeat of the Empire of Japan in World War II the Communist Party defeated the nationalist Kuomintang in mainland China and established the Peoples Republic of China in Beijing on 1 October 1949 while the Kuomintang relocated the ROC government to its present capital of Taipei

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2012

6671 7152

8183

9164 9812

1051

1135 1205

1263 1304

1338 1351

Population (millions)

Some gross financial indicators

IMF 2014 forecasts

Trivia Marketing International copy2015 8

GDP growth The IMF has just released its forecast for the year 2015 and it shows a GDP growth projection of 73 in line with estimates of Chinese officials In average 2010-2014 the Nation investment rate is 482 and 509 for the savings rate - government investment (rate - 477 and 50 in 2014 local authorities businesses and households) - figures that have no equivalent in the world China wages The unemployment rate is a flat rate set at 41 of the labor force which is contrary to the facts A 7-8 rate should be closer to the reality The standard workweek in China is 40 hours (eight hours per day five days per week) Minimum Chinese wage ($264) sit in the middle between the lowest (Bangladesh - $38) and the highest (Japan - $1319) Average annual wage increase 2001-2011 is close to 15

Sources IMF MOHRSS ndash 2013 ndash in yuan and China statistical yearbook 2013

1000 ndash 1100 yuan

1101 ndash 1200 yuan

1201 ndash 1300 yuan

1301 ndash 1400 yuan

1401 ndash 1500 yuan

1501 ndash 1600 yuan

Some gross financial indicators

Measuring Chinese Economic Efficiency

Trivia Marketing International copy2015 9

Business registration and economic output

In recent years economic output in China has been decreasing This is in line with the downward trend of the global economy weakening global demand However in Chinarsquos case there are also other internal factors that come into play In China ever-rising production costs have led to a continuous drop of output efficiency This in turn pushes down the value-added of industry

When comparing the registered capital and GDP per business entity one can see that a large capital input can only produce a small output Therefore while undergoing economic reforms China must adopt the most appropriate type of reform for itself Purely turning to ldquohigh value-addedrdquo industries may not adequately accommodate the large labor force in China Blindly raising capital input does not guarantee a result of high value-added economy or rapid technology advancement Other input factors must also be properly employed Otherwise the result will only be a drop in productivity leading to a weakening of the economyrsquos overall competitiveness

Sources CEIC 082014

The average registered capital per business entity kept reaching new heights in the past few years This fact not only indicates that a larger capital input is needed for economic development but also reflects an increasing cost of production

With the structural transformation of Chinarsquos economy underway economic development now focuses on high value-added industries As a result we see a growing need for new capital A capital-intensive economy has become the new direction of Chinarsquos future development This means that the greatest challenge in the upcoming future will be labor input with a higher education level and better skills

167

156147

133

094095093087

00

02

04

06

08

10

12

14

16

18

00

01

02

03

04

05

06

07

08

09

10

061

2013

056

2012

063

2011 2010

065

GDP per social capital

Social capital by business entity

GDP per business entity Business Registration and economic

output

China Largest business cities

Mongolia

Russia

Japan South Korea

India

BEIJING Kashi

Uumlruumlmqi

Shiquanhe

Lhasa

Xining Lanzhou

Yinchuan

Hailar

Harbin

Changchun

Taiyuan

Qingdao

Zhengzhou

Taipei

Nanchang

Fuzhou

Hefei

Hong Kong

Changsha

Haikou

Nanning

Guiyang

Kunming

TIANJIN

SHANGHAI

GUANGZHOU

CHENG DOU

SHEN YANG

NAN JING

CHONGQING

SHENZHEN

HANGZHOU WU HAN

XI AN

10 Trivia Marketing International copy2015

$280 036 Million of ICT spends in 2014

Trivia Marketing International copy2015 11

Annual ICT Spends Sum of (Hardware Software Services Telecom) spend

East $ 111788 M

Northeast $ 19999 M

Northwest $ 17701 M

South Central $ 75500 M

North $ 32081 M

Southwest $ 22967 M

ICT spend budgets per region shown on this slide are calculated through Trivia Marketing solution adding each ICT company spend per region

ICT sector

Trivia Marketing International copy2015 12

The ICT sector is a pillar of the Chinese economy and helps to increase the domestic demand of the country which is closely followed by the Chinese government

Economic importance 2008 2011 2012 Evolution

GDP RMB bn 31405 51947 + 6541

GDP growth real 96 78 - 18 pts

GDP information transmission computer services and software RMB bn 786 978 + 2443

GDP information transmission computer services and software RMB bn of total 250 207 - 043 pts

ICT revenue growth 118 89 - 29pts

ICT Exports and Imports 2005 2011 2012 Evolution

ICT services exports USD bn 222 685 + 20855

ICT goods imports 253 18 - 73 pts

ICT goods exports 307 268 - 39 pts

ICT services exports 249 349 + 10 pts

Export of ICT services has experienced a period of growth above 20 before falling in 2009 However today the ICT market is ironed at a rate of double digit growth ICT represents now a third of countryrsquos exports of services

What you need to know about the ICT market The ICT market is relatively closed to competition and barriers to entry are rather high Foreign companies are only allowed to participate by joint-ventures and the capital held by foreign stockholders is limited to 50 for any company in the industry

ICT Spend insights TOP 10 countries China stands in 10th position worldwide regarding ICT spends per employee

The average level of development of most companies informatization in China is still in the early implementation stage Although IT hardware product average depreciable life is usually 5 years and IT software average depreciable life is

usually 10 years the actual depreciable life is higher than the regular number in many Chinese companies The unit price of IT hardware is tending downward on the Chinese market The average unit price of PC is about ￥3000+ RMB the average unit price of notebook is about￥5000+ RMB

There is an undeniable fact that pirated software have been available for years in China When China awakes she spends $370 billion to the cloud The turnover of the IT industry in China reached 1757 billion yuan ($2805 billion) in late 2013

Trivia Marketing International copy2015 13

ICT Spend insights

Trivia Marketing International copy2015 14

Softwarersquos and Piracy 2013-2014 status

The Chinese government as central as local levels has made efforts to eradicate software piracy in its various branches This has resulted in an investment of around 216 billion yuan ($34471 M) in software over the past three years

The official news agency Xinhua reported that since the Chinese government launched its anti-piracy project among its branches in 2010 until its conclusion in April he bought 3230000 units of office software according to the national copyright administration (NCA) It was reported in July 2012 that more than 1 billion yuan ($15959 M) was spent by the Chinese government to buy licensed softwares This amount was distributed to the end of June 2012 between 158823 operating system licenses 506693 copies of Office software as well as antivirus and other specialized softwares

This announcement is timely for China while an American commission released a study showing that the violation of the intellectual property of US companies by foreign groups costs the United States $ 300 billion (234 billion euros) every year According to the report China is responsible for 50-80 of these intellectual property thefts May 20th 2014 Reuters agency reports the Central Government Procurement Center issued the ban on installing Windows 8 on Chinese government computers as part of a notice on the use of energy-saving productshellip

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

From one side of the world to another

A New Vision for making faster business growth

All languages

All industries

All sizes

A New and Innovative methodology designed to

Support strategical marketing plans

Boost sales efficiency and perfomance

Improve Business Intelligence

An invitation to our Client Buying Power solution preview

Trivia Marketing International copy2015

What do we deliver 5 guaranteed budgets with a contractual qualitative rate of 80 minimum

IT product expenses Including desktop laptop thin client tablets printer serveur storage peripherals

Services expenses Including Education Infra cloud SecuritySupport Services Applications BPO Support deployment

Product and telecom services expenses

Including Enterprise networks Service provider Equipment Phones Smartphones

FixedWireless voice Fixed Wireless data

Software and application expenses Including System Mgt Security Software

Data Mgt Applications

BUDGET SERVICES BUDGET TELECOM

BUDGET SOFTWARE BUDGET HARDWARE

TOTAL ICT BUDGET 119913119932119915119918119916119931119930(119919119938119955119941119960119938119955119942 + 119930119952119943119957119960119938119955119942 + 119930119942119955119959119946119940119942119956 + 119931119942119949119942119940119952119950)

4 Trivia Marketing International copy2015

What will you get in returns amp results NEW segmentation to Prioritize Existing and New Customers

Data Management

Response Analysis

Retain these best customers Lead gen these

prospects

Retain and up-sell these segments as they had explosive

growth in Client spend over the last 3 years and could

become best customers

Cherry pick the Affiliates to

develop based on sites that are not customers and

products that are under penetrated

Develop these low revenue customers

with the best spend potential

Hig

h

Me

diu

m

Lo

w o

r U

nk

no

wn

Tota

l E

st

ICT

Sp

en

d

Average Annual Client Indicator

2 7

5 12

4 6

9 32

8 14

7 1

Low Medium High

3 1

6 7

1 20

5 Trivia Marketing International copy2015

Agenda

7 China History insights

8 Some gross financial indicators

9 Measuring Chinese Economic Efficiency

10 Largest business cities

11 Annual Buying Power in traditional regions

12 ICT sector analysis

13 ICT spend insights 13 China stands in 10th position worldwide regarding IT spends per employee 14 Software and Piracy status 15 The cloud 16 National ICT budget 17 Computer highlights 18 Total annual ICT spend by largest cities 19 Total annual ICT spend by province 20 Trivia Marketingrsquos ICT spend accuracy validation against IDC amp Gartner

21 Trivia Marketing geographical expertise

22 Benefits from Trivia Marketingrsquos solution

A quick tour of China in 15 slides

Trivia Marketing International copy2015

China History Insights

Trivia Marketing International copy2015 7

Population of China The current population of the Peoplersquos Republic of China is estimated to be approximately 1354 billion people which is an increase of about 001 from the last record of the population China is the most populous country in the entire world even though the population gap with India is growing closer every year Historically over the last half of a century though the population of China has always been greater than the population of India Based on the total land area and the total population of the country the population density of the country is about 3633 people per square meter Languages in China Standard Chinese (known in China as Putonghua) is the official national spoken language for the mainland Language laws of China do not apply to either Hong Kong or Macau and hence have different official languages (Cantonese) than the mainland China has 56 recognized ethnic groups and they speak a variety of different languages The languages of China are collectively known as Zhōngyǔ(simplified Chinese 中语 traditional Chinese 中語 pinyin Zhōngyǔ) and their study is considered a distinct academic discipline in China Zhōngyǔ span eight primary language families are diverse morphologically and phonetically and may be mutually unintelligible to each other China has 292 living languages and 1 extinct language (Jurchen) according to Ethnologues

History of China The history of China goes back to the ancient civilization ndash one of the worlds earliest ndash that flourished in the fertile basin of the Yellow River in the North China Plain For millennia Chinas political system was based on hereditary monarchies known as dynasties beginning with the semi-mythological Xia of the Yellow River basin (c 2000 BCE) Since 221 BCE when the Qin Dynasty first conquered several states to form a Chinese empire the country has expanded fractured and been reformed numerous times The Republic of China (ROC) overthrew the last dynasty in 1911 and ruled the Chinese mainland until 1949 After the defeat of the Empire of Japan in World War II the Communist Party defeated the nationalist Kuomintang in mainland China and established the Peoples Republic of China in Beijing on 1 October 1949 while the Kuomintang relocated the ROC government to its present capital of Taipei

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2012

6671 7152

8183

9164 9812

1051

1135 1205

1263 1304

1338 1351

Population (millions)

Some gross financial indicators

IMF 2014 forecasts

Trivia Marketing International copy2015 8

GDP growth The IMF has just released its forecast for the year 2015 and it shows a GDP growth projection of 73 in line with estimates of Chinese officials In average 2010-2014 the Nation investment rate is 482 and 509 for the savings rate - government investment (rate - 477 and 50 in 2014 local authorities businesses and households) - figures that have no equivalent in the world China wages The unemployment rate is a flat rate set at 41 of the labor force which is contrary to the facts A 7-8 rate should be closer to the reality The standard workweek in China is 40 hours (eight hours per day five days per week) Minimum Chinese wage ($264) sit in the middle between the lowest (Bangladesh - $38) and the highest (Japan - $1319) Average annual wage increase 2001-2011 is close to 15

Sources IMF MOHRSS ndash 2013 ndash in yuan and China statistical yearbook 2013

1000 ndash 1100 yuan

1101 ndash 1200 yuan

1201 ndash 1300 yuan

1301 ndash 1400 yuan

1401 ndash 1500 yuan

1501 ndash 1600 yuan

Some gross financial indicators

Measuring Chinese Economic Efficiency

Trivia Marketing International copy2015 9

Business registration and economic output

In recent years economic output in China has been decreasing This is in line with the downward trend of the global economy weakening global demand However in Chinarsquos case there are also other internal factors that come into play In China ever-rising production costs have led to a continuous drop of output efficiency This in turn pushes down the value-added of industry

When comparing the registered capital and GDP per business entity one can see that a large capital input can only produce a small output Therefore while undergoing economic reforms China must adopt the most appropriate type of reform for itself Purely turning to ldquohigh value-addedrdquo industries may not adequately accommodate the large labor force in China Blindly raising capital input does not guarantee a result of high value-added economy or rapid technology advancement Other input factors must also be properly employed Otherwise the result will only be a drop in productivity leading to a weakening of the economyrsquos overall competitiveness

Sources CEIC 082014

The average registered capital per business entity kept reaching new heights in the past few years This fact not only indicates that a larger capital input is needed for economic development but also reflects an increasing cost of production

With the structural transformation of Chinarsquos economy underway economic development now focuses on high value-added industries As a result we see a growing need for new capital A capital-intensive economy has become the new direction of Chinarsquos future development This means that the greatest challenge in the upcoming future will be labor input with a higher education level and better skills

167

156147

133

094095093087

00

02

04

06

08

10

12

14

16

18

00

01

02

03

04

05

06

07

08

09

10

061

2013

056

2012

063

2011 2010

065

GDP per social capital

Social capital by business entity

GDP per business entity Business Registration and economic

output

China Largest business cities

Mongolia

Russia

Japan South Korea

India

BEIJING Kashi

Uumlruumlmqi

Shiquanhe

Lhasa

Xining Lanzhou

Yinchuan

Hailar

Harbin

Changchun

Taiyuan

Qingdao

Zhengzhou

Taipei

Nanchang

Fuzhou

Hefei

Hong Kong

Changsha

Haikou

Nanning

Guiyang

Kunming

TIANJIN

SHANGHAI

GUANGZHOU

CHENG DOU

SHEN YANG

NAN JING

CHONGQING

SHENZHEN

HANGZHOU WU HAN

XI AN

10 Trivia Marketing International copy2015

$280 036 Million of ICT spends in 2014

Trivia Marketing International copy2015 11

Annual ICT Spends Sum of (Hardware Software Services Telecom) spend

East $ 111788 M

Northeast $ 19999 M

Northwest $ 17701 M

South Central $ 75500 M

North $ 32081 M

Southwest $ 22967 M

ICT spend budgets per region shown on this slide are calculated through Trivia Marketing solution adding each ICT company spend per region

ICT sector

Trivia Marketing International copy2015 12

The ICT sector is a pillar of the Chinese economy and helps to increase the domestic demand of the country which is closely followed by the Chinese government

Economic importance 2008 2011 2012 Evolution

GDP RMB bn 31405 51947 + 6541

GDP growth real 96 78 - 18 pts

GDP information transmission computer services and software RMB bn 786 978 + 2443

GDP information transmission computer services and software RMB bn of total 250 207 - 043 pts

ICT revenue growth 118 89 - 29pts

ICT Exports and Imports 2005 2011 2012 Evolution

ICT services exports USD bn 222 685 + 20855

ICT goods imports 253 18 - 73 pts

ICT goods exports 307 268 - 39 pts

ICT services exports 249 349 + 10 pts

Export of ICT services has experienced a period of growth above 20 before falling in 2009 However today the ICT market is ironed at a rate of double digit growth ICT represents now a third of countryrsquos exports of services

What you need to know about the ICT market The ICT market is relatively closed to competition and barriers to entry are rather high Foreign companies are only allowed to participate by joint-ventures and the capital held by foreign stockholders is limited to 50 for any company in the industry

ICT Spend insights TOP 10 countries China stands in 10th position worldwide regarding ICT spends per employee

The average level of development of most companies informatization in China is still in the early implementation stage Although IT hardware product average depreciable life is usually 5 years and IT software average depreciable life is

usually 10 years the actual depreciable life is higher than the regular number in many Chinese companies The unit price of IT hardware is tending downward on the Chinese market The average unit price of PC is about ￥3000+ RMB the average unit price of notebook is about￥5000+ RMB

There is an undeniable fact that pirated software have been available for years in China When China awakes she spends $370 billion to the cloud The turnover of the IT industry in China reached 1757 billion yuan ($2805 billion) in late 2013

Trivia Marketing International copy2015 13

ICT Spend insights

Trivia Marketing International copy2015 14

Softwarersquos and Piracy 2013-2014 status

The Chinese government as central as local levels has made efforts to eradicate software piracy in its various branches This has resulted in an investment of around 216 billion yuan ($34471 M) in software over the past three years

The official news agency Xinhua reported that since the Chinese government launched its anti-piracy project among its branches in 2010 until its conclusion in April he bought 3230000 units of office software according to the national copyright administration (NCA) It was reported in July 2012 that more than 1 billion yuan ($15959 M) was spent by the Chinese government to buy licensed softwares This amount was distributed to the end of June 2012 between 158823 operating system licenses 506693 copies of Office software as well as antivirus and other specialized softwares

This announcement is timely for China while an American commission released a study showing that the violation of the intellectual property of US companies by foreign groups costs the United States $ 300 billion (234 billion euros) every year According to the report China is responsible for 50-80 of these intellectual property thefts May 20th 2014 Reuters agency reports the Central Government Procurement Center issued the ban on installing Windows 8 on Chinese government computers as part of a notice on the use of energy-saving productshellip

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

What do we deliver 5 guaranteed budgets with a contractual qualitative rate of 80 minimum

IT product expenses Including desktop laptop thin client tablets printer serveur storage peripherals

Services expenses Including Education Infra cloud SecuritySupport Services Applications BPO Support deployment

Product and telecom services expenses

Including Enterprise networks Service provider Equipment Phones Smartphones

FixedWireless voice Fixed Wireless data

Software and application expenses Including System Mgt Security Software

Data Mgt Applications

BUDGET SERVICES BUDGET TELECOM

BUDGET SOFTWARE BUDGET HARDWARE

TOTAL ICT BUDGET 119913119932119915119918119916119931119930(119919119938119955119941119960119938119955119942 + 119930119952119943119957119960119938119955119942 + 119930119942119955119959119946119940119942119956 + 119931119942119949119942119940119952119950)

4 Trivia Marketing International copy2015

What will you get in returns amp results NEW segmentation to Prioritize Existing and New Customers

Data Management

Response Analysis

Retain these best customers Lead gen these

prospects

Retain and up-sell these segments as they had explosive

growth in Client spend over the last 3 years and could

become best customers

Cherry pick the Affiliates to

develop based on sites that are not customers and

products that are under penetrated

Develop these low revenue customers

with the best spend potential

Hig

h

Me

diu

m

Lo

w o

r U

nk

no

wn

Tota

l E

st

ICT

Sp

en

d

Average Annual Client Indicator

2 7

5 12

4 6

9 32

8 14

7 1

Low Medium High

3 1

6 7

1 20

5 Trivia Marketing International copy2015

Agenda

7 China History insights

8 Some gross financial indicators

9 Measuring Chinese Economic Efficiency

10 Largest business cities

11 Annual Buying Power in traditional regions

12 ICT sector analysis

13 ICT spend insights 13 China stands in 10th position worldwide regarding IT spends per employee 14 Software and Piracy status 15 The cloud 16 National ICT budget 17 Computer highlights 18 Total annual ICT spend by largest cities 19 Total annual ICT spend by province 20 Trivia Marketingrsquos ICT spend accuracy validation against IDC amp Gartner

21 Trivia Marketing geographical expertise

22 Benefits from Trivia Marketingrsquos solution

A quick tour of China in 15 slides

Trivia Marketing International copy2015

China History Insights

Trivia Marketing International copy2015 7

Population of China The current population of the Peoplersquos Republic of China is estimated to be approximately 1354 billion people which is an increase of about 001 from the last record of the population China is the most populous country in the entire world even though the population gap with India is growing closer every year Historically over the last half of a century though the population of China has always been greater than the population of India Based on the total land area and the total population of the country the population density of the country is about 3633 people per square meter Languages in China Standard Chinese (known in China as Putonghua) is the official national spoken language for the mainland Language laws of China do not apply to either Hong Kong or Macau and hence have different official languages (Cantonese) than the mainland China has 56 recognized ethnic groups and they speak a variety of different languages The languages of China are collectively known as Zhōngyǔ(simplified Chinese 中语 traditional Chinese 中語 pinyin Zhōngyǔ) and their study is considered a distinct academic discipline in China Zhōngyǔ span eight primary language families are diverse morphologically and phonetically and may be mutually unintelligible to each other China has 292 living languages and 1 extinct language (Jurchen) according to Ethnologues

History of China The history of China goes back to the ancient civilization ndash one of the worlds earliest ndash that flourished in the fertile basin of the Yellow River in the North China Plain For millennia Chinas political system was based on hereditary monarchies known as dynasties beginning with the semi-mythological Xia of the Yellow River basin (c 2000 BCE) Since 221 BCE when the Qin Dynasty first conquered several states to form a Chinese empire the country has expanded fractured and been reformed numerous times The Republic of China (ROC) overthrew the last dynasty in 1911 and ruled the Chinese mainland until 1949 After the defeat of the Empire of Japan in World War II the Communist Party defeated the nationalist Kuomintang in mainland China and established the Peoples Republic of China in Beijing on 1 October 1949 while the Kuomintang relocated the ROC government to its present capital of Taipei

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2012

6671 7152

8183

9164 9812

1051

1135 1205

1263 1304

1338 1351

Population (millions)

Some gross financial indicators

IMF 2014 forecasts

Trivia Marketing International copy2015 8

GDP growth The IMF has just released its forecast for the year 2015 and it shows a GDP growth projection of 73 in line with estimates of Chinese officials In average 2010-2014 the Nation investment rate is 482 and 509 for the savings rate - government investment (rate - 477 and 50 in 2014 local authorities businesses and households) - figures that have no equivalent in the world China wages The unemployment rate is a flat rate set at 41 of the labor force which is contrary to the facts A 7-8 rate should be closer to the reality The standard workweek in China is 40 hours (eight hours per day five days per week) Minimum Chinese wage ($264) sit in the middle between the lowest (Bangladesh - $38) and the highest (Japan - $1319) Average annual wage increase 2001-2011 is close to 15

Sources IMF MOHRSS ndash 2013 ndash in yuan and China statistical yearbook 2013

1000 ndash 1100 yuan

1101 ndash 1200 yuan

1201 ndash 1300 yuan

1301 ndash 1400 yuan

1401 ndash 1500 yuan

1501 ndash 1600 yuan

Some gross financial indicators

Measuring Chinese Economic Efficiency

Trivia Marketing International copy2015 9

Business registration and economic output

In recent years economic output in China has been decreasing This is in line with the downward trend of the global economy weakening global demand However in Chinarsquos case there are also other internal factors that come into play In China ever-rising production costs have led to a continuous drop of output efficiency This in turn pushes down the value-added of industry

When comparing the registered capital and GDP per business entity one can see that a large capital input can only produce a small output Therefore while undergoing economic reforms China must adopt the most appropriate type of reform for itself Purely turning to ldquohigh value-addedrdquo industries may not adequately accommodate the large labor force in China Blindly raising capital input does not guarantee a result of high value-added economy or rapid technology advancement Other input factors must also be properly employed Otherwise the result will only be a drop in productivity leading to a weakening of the economyrsquos overall competitiveness

Sources CEIC 082014

The average registered capital per business entity kept reaching new heights in the past few years This fact not only indicates that a larger capital input is needed for economic development but also reflects an increasing cost of production

With the structural transformation of Chinarsquos economy underway economic development now focuses on high value-added industries As a result we see a growing need for new capital A capital-intensive economy has become the new direction of Chinarsquos future development This means that the greatest challenge in the upcoming future will be labor input with a higher education level and better skills

167

156147

133

094095093087

00

02

04

06

08

10

12

14

16

18

00

01

02

03

04

05

06

07

08

09

10

061

2013

056

2012

063

2011 2010

065

GDP per social capital

Social capital by business entity

GDP per business entity Business Registration and economic

output

China Largest business cities

Mongolia

Russia

Japan South Korea

India

BEIJING Kashi

Uumlruumlmqi

Shiquanhe

Lhasa

Xining Lanzhou

Yinchuan

Hailar

Harbin

Changchun

Taiyuan

Qingdao

Zhengzhou

Taipei

Nanchang

Fuzhou

Hefei

Hong Kong

Changsha

Haikou

Nanning

Guiyang

Kunming

TIANJIN

SHANGHAI

GUANGZHOU

CHENG DOU

SHEN YANG

NAN JING

CHONGQING

SHENZHEN

HANGZHOU WU HAN

XI AN

10 Trivia Marketing International copy2015

$280 036 Million of ICT spends in 2014

Trivia Marketing International copy2015 11

Annual ICT Spends Sum of (Hardware Software Services Telecom) spend

East $ 111788 M

Northeast $ 19999 M

Northwest $ 17701 M

South Central $ 75500 M

North $ 32081 M

Southwest $ 22967 M

ICT spend budgets per region shown on this slide are calculated through Trivia Marketing solution adding each ICT company spend per region

ICT sector

Trivia Marketing International copy2015 12

The ICT sector is a pillar of the Chinese economy and helps to increase the domestic demand of the country which is closely followed by the Chinese government

Economic importance 2008 2011 2012 Evolution

GDP RMB bn 31405 51947 + 6541

GDP growth real 96 78 - 18 pts

GDP information transmission computer services and software RMB bn 786 978 + 2443

GDP information transmission computer services and software RMB bn of total 250 207 - 043 pts

ICT revenue growth 118 89 - 29pts

ICT Exports and Imports 2005 2011 2012 Evolution

ICT services exports USD bn 222 685 + 20855

ICT goods imports 253 18 - 73 pts

ICT goods exports 307 268 - 39 pts

ICT services exports 249 349 + 10 pts

Export of ICT services has experienced a period of growth above 20 before falling in 2009 However today the ICT market is ironed at a rate of double digit growth ICT represents now a third of countryrsquos exports of services

What you need to know about the ICT market The ICT market is relatively closed to competition and barriers to entry are rather high Foreign companies are only allowed to participate by joint-ventures and the capital held by foreign stockholders is limited to 50 for any company in the industry

ICT Spend insights TOP 10 countries China stands in 10th position worldwide regarding ICT spends per employee

The average level of development of most companies informatization in China is still in the early implementation stage Although IT hardware product average depreciable life is usually 5 years and IT software average depreciable life is

usually 10 years the actual depreciable life is higher than the regular number in many Chinese companies The unit price of IT hardware is tending downward on the Chinese market The average unit price of PC is about ￥3000+ RMB the average unit price of notebook is about￥5000+ RMB

There is an undeniable fact that pirated software have been available for years in China When China awakes she spends $370 billion to the cloud The turnover of the IT industry in China reached 1757 billion yuan ($2805 billion) in late 2013

Trivia Marketing International copy2015 13

ICT Spend insights

Trivia Marketing International copy2015 14

Softwarersquos and Piracy 2013-2014 status

The Chinese government as central as local levels has made efforts to eradicate software piracy in its various branches This has resulted in an investment of around 216 billion yuan ($34471 M) in software over the past three years

The official news agency Xinhua reported that since the Chinese government launched its anti-piracy project among its branches in 2010 until its conclusion in April he bought 3230000 units of office software according to the national copyright administration (NCA) It was reported in July 2012 that more than 1 billion yuan ($15959 M) was spent by the Chinese government to buy licensed softwares This amount was distributed to the end of June 2012 between 158823 operating system licenses 506693 copies of Office software as well as antivirus and other specialized softwares

This announcement is timely for China while an American commission released a study showing that the violation of the intellectual property of US companies by foreign groups costs the United States $ 300 billion (234 billion euros) every year According to the report China is responsible for 50-80 of these intellectual property thefts May 20th 2014 Reuters agency reports the Central Government Procurement Center issued the ban on installing Windows 8 on Chinese government computers as part of a notice on the use of energy-saving productshellip

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

What will you get in returns amp results NEW segmentation to Prioritize Existing and New Customers

Data Management

Response Analysis

Retain these best customers Lead gen these

prospects

Retain and up-sell these segments as they had explosive

growth in Client spend over the last 3 years and could

become best customers

Cherry pick the Affiliates to

develop based on sites that are not customers and

products that are under penetrated

Develop these low revenue customers

with the best spend potential

Hig

h

Me

diu

m

Lo

w o

r U

nk

no

wn

Tota

l E

st

ICT

Sp

en

d

Average Annual Client Indicator

2 7

5 12

4 6

9 32

8 14

7 1

Low Medium High

3 1

6 7

1 20

5 Trivia Marketing International copy2015

Agenda

7 China History insights

8 Some gross financial indicators

9 Measuring Chinese Economic Efficiency

10 Largest business cities

11 Annual Buying Power in traditional regions

12 ICT sector analysis

13 ICT spend insights 13 China stands in 10th position worldwide regarding IT spends per employee 14 Software and Piracy status 15 The cloud 16 National ICT budget 17 Computer highlights 18 Total annual ICT spend by largest cities 19 Total annual ICT spend by province 20 Trivia Marketingrsquos ICT spend accuracy validation against IDC amp Gartner

21 Trivia Marketing geographical expertise

22 Benefits from Trivia Marketingrsquos solution

A quick tour of China in 15 slides

Trivia Marketing International copy2015

China History Insights

Trivia Marketing International copy2015 7

Population of China The current population of the Peoplersquos Republic of China is estimated to be approximately 1354 billion people which is an increase of about 001 from the last record of the population China is the most populous country in the entire world even though the population gap with India is growing closer every year Historically over the last half of a century though the population of China has always been greater than the population of India Based on the total land area and the total population of the country the population density of the country is about 3633 people per square meter Languages in China Standard Chinese (known in China as Putonghua) is the official national spoken language for the mainland Language laws of China do not apply to either Hong Kong or Macau and hence have different official languages (Cantonese) than the mainland China has 56 recognized ethnic groups and they speak a variety of different languages The languages of China are collectively known as Zhōngyǔ(simplified Chinese 中语 traditional Chinese 中語 pinyin Zhōngyǔ) and their study is considered a distinct academic discipline in China Zhōngyǔ span eight primary language families are diverse morphologically and phonetically and may be mutually unintelligible to each other China has 292 living languages and 1 extinct language (Jurchen) according to Ethnologues

History of China The history of China goes back to the ancient civilization ndash one of the worlds earliest ndash that flourished in the fertile basin of the Yellow River in the North China Plain For millennia Chinas political system was based on hereditary monarchies known as dynasties beginning with the semi-mythological Xia of the Yellow River basin (c 2000 BCE) Since 221 BCE when the Qin Dynasty first conquered several states to form a Chinese empire the country has expanded fractured and been reformed numerous times The Republic of China (ROC) overthrew the last dynasty in 1911 and ruled the Chinese mainland until 1949 After the defeat of the Empire of Japan in World War II the Communist Party defeated the nationalist Kuomintang in mainland China and established the Peoples Republic of China in Beijing on 1 October 1949 while the Kuomintang relocated the ROC government to its present capital of Taipei

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2012

6671 7152

8183

9164 9812

1051

1135 1205

1263 1304

1338 1351

Population (millions)

Some gross financial indicators

IMF 2014 forecasts

Trivia Marketing International copy2015 8

GDP growth The IMF has just released its forecast for the year 2015 and it shows a GDP growth projection of 73 in line with estimates of Chinese officials In average 2010-2014 the Nation investment rate is 482 and 509 for the savings rate - government investment (rate - 477 and 50 in 2014 local authorities businesses and households) - figures that have no equivalent in the world China wages The unemployment rate is a flat rate set at 41 of the labor force which is contrary to the facts A 7-8 rate should be closer to the reality The standard workweek in China is 40 hours (eight hours per day five days per week) Minimum Chinese wage ($264) sit in the middle between the lowest (Bangladesh - $38) and the highest (Japan - $1319) Average annual wage increase 2001-2011 is close to 15

Sources IMF MOHRSS ndash 2013 ndash in yuan and China statistical yearbook 2013

1000 ndash 1100 yuan

1101 ndash 1200 yuan

1201 ndash 1300 yuan

1301 ndash 1400 yuan

1401 ndash 1500 yuan

1501 ndash 1600 yuan

Some gross financial indicators

Measuring Chinese Economic Efficiency

Trivia Marketing International copy2015 9

Business registration and economic output

In recent years economic output in China has been decreasing This is in line with the downward trend of the global economy weakening global demand However in Chinarsquos case there are also other internal factors that come into play In China ever-rising production costs have led to a continuous drop of output efficiency This in turn pushes down the value-added of industry

When comparing the registered capital and GDP per business entity one can see that a large capital input can only produce a small output Therefore while undergoing economic reforms China must adopt the most appropriate type of reform for itself Purely turning to ldquohigh value-addedrdquo industries may not adequately accommodate the large labor force in China Blindly raising capital input does not guarantee a result of high value-added economy or rapid technology advancement Other input factors must also be properly employed Otherwise the result will only be a drop in productivity leading to a weakening of the economyrsquos overall competitiveness

Sources CEIC 082014

The average registered capital per business entity kept reaching new heights in the past few years This fact not only indicates that a larger capital input is needed for economic development but also reflects an increasing cost of production

With the structural transformation of Chinarsquos economy underway economic development now focuses on high value-added industries As a result we see a growing need for new capital A capital-intensive economy has become the new direction of Chinarsquos future development This means that the greatest challenge in the upcoming future will be labor input with a higher education level and better skills

167

156147

133

094095093087

00

02

04

06

08

10

12

14

16

18

00

01

02

03

04

05

06

07

08

09

10

061

2013

056

2012

063

2011 2010

065

GDP per social capital

Social capital by business entity

GDP per business entity Business Registration and economic

output

China Largest business cities

Mongolia

Russia

Japan South Korea

India

BEIJING Kashi

Uumlruumlmqi

Shiquanhe

Lhasa

Xining Lanzhou

Yinchuan

Hailar

Harbin

Changchun

Taiyuan

Qingdao

Zhengzhou

Taipei

Nanchang

Fuzhou

Hefei

Hong Kong

Changsha

Haikou

Nanning

Guiyang

Kunming

TIANJIN

SHANGHAI

GUANGZHOU

CHENG DOU

SHEN YANG

NAN JING

CHONGQING

SHENZHEN

HANGZHOU WU HAN

XI AN

10 Trivia Marketing International copy2015

$280 036 Million of ICT spends in 2014

Trivia Marketing International copy2015 11

Annual ICT Spends Sum of (Hardware Software Services Telecom) spend

East $ 111788 M

Northeast $ 19999 M

Northwest $ 17701 M

South Central $ 75500 M

North $ 32081 M

Southwest $ 22967 M

ICT spend budgets per region shown on this slide are calculated through Trivia Marketing solution adding each ICT company spend per region

ICT sector

Trivia Marketing International copy2015 12

The ICT sector is a pillar of the Chinese economy and helps to increase the domestic demand of the country which is closely followed by the Chinese government

Economic importance 2008 2011 2012 Evolution

GDP RMB bn 31405 51947 + 6541

GDP growth real 96 78 - 18 pts

GDP information transmission computer services and software RMB bn 786 978 + 2443

GDP information transmission computer services and software RMB bn of total 250 207 - 043 pts

ICT revenue growth 118 89 - 29pts

ICT Exports and Imports 2005 2011 2012 Evolution

ICT services exports USD bn 222 685 + 20855

ICT goods imports 253 18 - 73 pts

ICT goods exports 307 268 - 39 pts

ICT services exports 249 349 + 10 pts

Export of ICT services has experienced a period of growth above 20 before falling in 2009 However today the ICT market is ironed at a rate of double digit growth ICT represents now a third of countryrsquos exports of services

What you need to know about the ICT market The ICT market is relatively closed to competition and barriers to entry are rather high Foreign companies are only allowed to participate by joint-ventures and the capital held by foreign stockholders is limited to 50 for any company in the industry

ICT Spend insights TOP 10 countries China stands in 10th position worldwide regarding ICT spends per employee

The average level of development of most companies informatization in China is still in the early implementation stage Although IT hardware product average depreciable life is usually 5 years and IT software average depreciable life is

usually 10 years the actual depreciable life is higher than the regular number in many Chinese companies The unit price of IT hardware is tending downward on the Chinese market The average unit price of PC is about ￥3000+ RMB the average unit price of notebook is about￥5000+ RMB

There is an undeniable fact that pirated software have been available for years in China When China awakes she spends $370 billion to the cloud The turnover of the IT industry in China reached 1757 billion yuan ($2805 billion) in late 2013

Trivia Marketing International copy2015 13

ICT Spend insights

Trivia Marketing International copy2015 14

Softwarersquos and Piracy 2013-2014 status

The Chinese government as central as local levels has made efforts to eradicate software piracy in its various branches This has resulted in an investment of around 216 billion yuan ($34471 M) in software over the past three years

The official news agency Xinhua reported that since the Chinese government launched its anti-piracy project among its branches in 2010 until its conclusion in April he bought 3230000 units of office software according to the national copyright administration (NCA) It was reported in July 2012 that more than 1 billion yuan ($15959 M) was spent by the Chinese government to buy licensed softwares This amount was distributed to the end of June 2012 between 158823 operating system licenses 506693 copies of Office software as well as antivirus and other specialized softwares

This announcement is timely for China while an American commission released a study showing that the violation of the intellectual property of US companies by foreign groups costs the United States $ 300 billion (234 billion euros) every year According to the report China is responsible for 50-80 of these intellectual property thefts May 20th 2014 Reuters agency reports the Central Government Procurement Center issued the ban on installing Windows 8 on Chinese government computers as part of a notice on the use of energy-saving productshellip

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

Agenda

7 China History insights

8 Some gross financial indicators

9 Measuring Chinese Economic Efficiency

10 Largest business cities

11 Annual Buying Power in traditional regions

12 ICT sector analysis

13 ICT spend insights 13 China stands in 10th position worldwide regarding IT spends per employee 14 Software and Piracy status 15 The cloud 16 National ICT budget 17 Computer highlights 18 Total annual ICT spend by largest cities 19 Total annual ICT spend by province 20 Trivia Marketingrsquos ICT spend accuracy validation against IDC amp Gartner

21 Trivia Marketing geographical expertise

22 Benefits from Trivia Marketingrsquos solution

A quick tour of China in 15 slides

Trivia Marketing International copy2015

China History Insights

Trivia Marketing International copy2015 7

Population of China The current population of the Peoplersquos Republic of China is estimated to be approximately 1354 billion people which is an increase of about 001 from the last record of the population China is the most populous country in the entire world even though the population gap with India is growing closer every year Historically over the last half of a century though the population of China has always been greater than the population of India Based on the total land area and the total population of the country the population density of the country is about 3633 people per square meter Languages in China Standard Chinese (known in China as Putonghua) is the official national spoken language for the mainland Language laws of China do not apply to either Hong Kong or Macau and hence have different official languages (Cantonese) than the mainland China has 56 recognized ethnic groups and they speak a variety of different languages The languages of China are collectively known as Zhōngyǔ(simplified Chinese 中语 traditional Chinese 中語 pinyin Zhōngyǔ) and their study is considered a distinct academic discipline in China Zhōngyǔ span eight primary language families are diverse morphologically and phonetically and may be mutually unintelligible to each other China has 292 living languages and 1 extinct language (Jurchen) according to Ethnologues

History of China The history of China goes back to the ancient civilization ndash one of the worlds earliest ndash that flourished in the fertile basin of the Yellow River in the North China Plain For millennia Chinas political system was based on hereditary monarchies known as dynasties beginning with the semi-mythological Xia of the Yellow River basin (c 2000 BCE) Since 221 BCE when the Qin Dynasty first conquered several states to form a Chinese empire the country has expanded fractured and been reformed numerous times The Republic of China (ROC) overthrew the last dynasty in 1911 and ruled the Chinese mainland until 1949 After the defeat of the Empire of Japan in World War II the Communist Party defeated the nationalist Kuomintang in mainland China and established the Peoples Republic of China in Beijing on 1 October 1949 while the Kuomintang relocated the ROC government to its present capital of Taipei

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2012

6671 7152

8183

9164 9812

1051

1135 1205

1263 1304

1338 1351

Population (millions)

Some gross financial indicators

IMF 2014 forecasts

Trivia Marketing International copy2015 8

GDP growth The IMF has just released its forecast for the year 2015 and it shows a GDP growth projection of 73 in line with estimates of Chinese officials In average 2010-2014 the Nation investment rate is 482 and 509 for the savings rate - government investment (rate - 477 and 50 in 2014 local authorities businesses and households) - figures that have no equivalent in the world China wages The unemployment rate is a flat rate set at 41 of the labor force which is contrary to the facts A 7-8 rate should be closer to the reality The standard workweek in China is 40 hours (eight hours per day five days per week) Minimum Chinese wage ($264) sit in the middle between the lowest (Bangladesh - $38) and the highest (Japan - $1319) Average annual wage increase 2001-2011 is close to 15

Sources IMF MOHRSS ndash 2013 ndash in yuan and China statistical yearbook 2013

1000 ndash 1100 yuan

1101 ndash 1200 yuan

1201 ndash 1300 yuan

1301 ndash 1400 yuan

1401 ndash 1500 yuan

1501 ndash 1600 yuan

Some gross financial indicators

Measuring Chinese Economic Efficiency

Trivia Marketing International copy2015 9

Business registration and economic output

In recent years economic output in China has been decreasing This is in line with the downward trend of the global economy weakening global demand However in Chinarsquos case there are also other internal factors that come into play In China ever-rising production costs have led to a continuous drop of output efficiency This in turn pushes down the value-added of industry

When comparing the registered capital and GDP per business entity one can see that a large capital input can only produce a small output Therefore while undergoing economic reforms China must adopt the most appropriate type of reform for itself Purely turning to ldquohigh value-addedrdquo industries may not adequately accommodate the large labor force in China Blindly raising capital input does not guarantee a result of high value-added economy or rapid technology advancement Other input factors must also be properly employed Otherwise the result will only be a drop in productivity leading to a weakening of the economyrsquos overall competitiveness

Sources CEIC 082014

The average registered capital per business entity kept reaching new heights in the past few years This fact not only indicates that a larger capital input is needed for economic development but also reflects an increasing cost of production

With the structural transformation of Chinarsquos economy underway economic development now focuses on high value-added industries As a result we see a growing need for new capital A capital-intensive economy has become the new direction of Chinarsquos future development This means that the greatest challenge in the upcoming future will be labor input with a higher education level and better skills

167

156147

133

094095093087

00

02

04

06

08

10

12

14

16

18

00

01

02

03

04

05

06

07

08

09

10

061

2013

056

2012

063

2011 2010

065

GDP per social capital

Social capital by business entity

GDP per business entity Business Registration and economic

output

China Largest business cities

Mongolia

Russia

Japan South Korea

India

BEIJING Kashi

Uumlruumlmqi

Shiquanhe

Lhasa

Xining Lanzhou

Yinchuan

Hailar

Harbin

Changchun

Taiyuan

Qingdao

Zhengzhou

Taipei

Nanchang

Fuzhou

Hefei

Hong Kong

Changsha

Haikou

Nanning

Guiyang

Kunming

TIANJIN

SHANGHAI

GUANGZHOU

CHENG DOU

SHEN YANG

NAN JING

CHONGQING

SHENZHEN

HANGZHOU WU HAN

XI AN

10 Trivia Marketing International copy2015

$280 036 Million of ICT spends in 2014

Trivia Marketing International copy2015 11

Annual ICT Spends Sum of (Hardware Software Services Telecom) spend

East $ 111788 M

Northeast $ 19999 M

Northwest $ 17701 M

South Central $ 75500 M

North $ 32081 M

Southwest $ 22967 M

ICT spend budgets per region shown on this slide are calculated through Trivia Marketing solution adding each ICT company spend per region

ICT sector

Trivia Marketing International copy2015 12

The ICT sector is a pillar of the Chinese economy and helps to increase the domestic demand of the country which is closely followed by the Chinese government

Economic importance 2008 2011 2012 Evolution

GDP RMB bn 31405 51947 + 6541

GDP growth real 96 78 - 18 pts

GDP information transmission computer services and software RMB bn 786 978 + 2443

GDP information transmission computer services and software RMB bn of total 250 207 - 043 pts

ICT revenue growth 118 89 - 29pts

ICT Exports and Imports 2005 2011 2012 Evolution

ICT services exports USD bn 222 685 + 20855

ICT goods imports 253 18 - 73 pts

ICT goods exports 307 268 - 39 pts

ICT services exports 249 349 + 10 pts

Export of ICT services has experienced a period of growth above 20 before falling in 2009 However today the ICT market is ironed at a rate of double digit growth ICT represents now a third of countryrsquos exports of services

What you need to know about the ICT market The ICT market is relatively closed to competition and barriers to entry are rather high Foreign companies are only allowed to participate by joint-ventures and the capital held by foreign stockholders is limited to 50 for any company in the industry

ICT Spend insights TOP 10 countries China stands in 10th position worldwide regarding ICT spends per employee

The average level of development of most companies informatization in China is still in the early implementation stage Although IT hardware product average depreciable life is usually 5 years and IT software average depreciable life is

usually 10 years the actual depreciable life is higher than the regular number in many Chinese companies The unit price of IT hardware is tending downward on the Chinese market The average unit price of PC is about ￥3000+ RMB the average unit price of notebook is about￥5000+ RMB

There is an undeniable fact that pirated software have been available for years in China When China awakes she spends $370 billion to the cloud The turnover of the IT industry in China reached 1757 billion yuan ($2805 billion) in late 2013

Trivia Marketing International copy2015 13

ICT Spend insights

Trivia Marketing International copy2015 14

Softwarersquos and Piracy 2013-2014 status

The Chinese government as central as local levels has made efforts to eradicate software piracy in its various branches This has resulted in an investment of around 216 billion yuan ($34471 M) in software over the past three years

The official news agency Xinhua reported that since the Chinese government launched its anti-piracy project among its branches in 2010 until its conclusion in April he bought 3230000 units of office software according to the national copyright administration (NCA) It was reported in July 2012 that more than 1 billion yuan ($15959 M) was spent by the Chinese government to buy licensed softwares This amount was distributed to the end of June 2012 between 158823 operating system licenses 506693 copies of Office software as well as antivirus and other specialized softwares

This announcement is timely for China while an American commission released a study showing that the violation of the intellectual property of US companies by foreign groups costs the United States $ 300 billion (234 billion euros) every year According to the report China is responsible for 50-80 of these intellectual property thefts May 20th 2014 Reuters agency reports the Central Government Procurement Center issued the ban on installing Windows 8 on Chinese government computers as part of a notice on the use of energy-saving productshellip

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

China History Insights

Trivia Marketing International copy2015 7

Population of China The current population of the Peoplersquos Republic of China is estimated to be approximately 1354 billion people which is an increase of about 001 from the last record of the population China is the most populous country in the entire world even though the population gap with India is growing closer every year Historically over the last half of a century though the population of China has always been greater than the population of India Based on the total land area and the total population of the country the population density of the country is about 3633 people per square meter Languages in China Standard Chinese (known in China as Putonghua) is the official national spoken language for the mainland Language laws of China do not apply to either Hong Kong or Macau and hence have different official languages (Cantonese) than the mainland China has 56 recognized ethnic groups and they speak a variety of different languages The languages of China are collectively known as Zhōngyǔ(simplified Chinese 中语 traditional Chinese 中語 pinyin Zhōngyǔ) and their study is considered a distinct academic discipline in China Zhōngyǔ span eight primary language families are diverse morphologically and phonetically and may be mutually unintelligible to each other China has 292 living languages and 1 extinct language (Jurchen) according to Ethnologues

History of China The history of China goes back to the ancient civilization ndash one of the worlds earliest ndash that flourished in the fertile basin of the Yellow River in the North China Plain For millennia Chinas political system was based on hereditary monarchies known as dynasties beginning with the semi-mythological Xia of the Yellow River basin (c 2000 BCE) Since 221 BCE when the Qin Dynasty first conquered several states to form a Chinese empire the country has expanded fractured and been reformed numerous times The Republic of China (ROC) overthrew the last dynasty in 1911 and ruled the Chinese mainland until 1949 After the defeat of the Empire of Japan in World War II the Communist Party defeated the nationalist Kuomintang in mainland China and established the Peoples Republic of China in Beijing on 1 October 1949 while the Kuomintang relocated the ROC government to its present capital of Taipei

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2012

6671 7152

8183

9164 9812

1051

1135 1205

1263 1304

1338 1351

Population (millions)

Some gross financial indicators

IMF 2014 forecasts

Trivia Marketing International copy2015 8

GDP growth The IMF has just released its forecast for the year 2015 and it shows a GDP growth projection of 73 in line with estimates of Chinese officials In average 2010-2014 the Nation investment rate is 482 and 509 for the savings rate - government investment (rate - 477 and 50 in 2014 local authorities businesses and households) - figures that have no equivalent in the world China wages The unemployment rate is a flat rate set at 41 of the labor force which is contrary to the facts A 7-8 rate should be closer to the reality The standard workweek in China is 40 hours (eight hours per day five days per week) Minimum Chinese wage ($264) sit in the middle between the lowest (Bangladesh - $38) and the highest (Japan - $1319) Average annual wage increase 2001-2011 is close to 15

Sources IMF MOHRSS ndash 2013 ndash in yuan and China statistical yearbook 2013

1000 ndash 1100 yuan

1101 ndash 1200 yuan

1201 ndash 1300 yuan

1301 ndash 1400 yuan

1401 ndash 1500 yuan

1501 ndash 1600 yuan

Some gross financial indicators

Measuring Chinese Economic Efficiency

Trivia Marketing International copy2015 9

Business registration and economic output

In recent years economic output in China has been decreasing This is in line with the downward trend of the global economy weakening global demand However in Chinarsquos case there are also other internal factors that come into play In China ever-rising production costs have led to a continuous drop of output efficiency This in turn pushes down the value-added of industry

When comparing the registered capital and GDP per business entity one can see that a large capital input can only produce a small output Therefore while undergoing economic reforms China must adopt the most appropriate type of reform for itself Purely turning to ldquohigh value-addedrdquo industries may not adequately accommodate the large labor force in China Blindly raising capital input does not guarantee a result of high value-added economy or rapid technology advancement Other input factors must also be properly employed Otherwise the result will only be a drop in productivity leading to a weakening of the economyrsquos overall competitiveness

Sources CEIC 082014

The average registered capital per business entity kept reaching new heights in the past few years This fact not only indicates that a larger capital input is needed for economic development but also reflects an increasing cost of production

With the structural transformation of Chinarsquos economy underway economic development now focuses on high value-added industries As a result we see a growing need for new capital A capital-intensive economy has become the new direction of Chinarsquos future development This means that the greatest challenge in the upcoming future will be labor input with a higher education level and better skills

167

156147

133

094095093087

00

02

04

06

08

10

12

14

16

18

00

01

02

03

04

05

06

07

08

09

10

061

2013

056

2012

063

2011 2010

065

GDP per social capital

Social capital by business entity

GDP per business entity Business Registration and economic

output

China Largest business cities

Mongolia

Russia

Japan South Korea

India

BEIJING Kashi

Uumlruumlmqi

Shiquanhe

Lhasa

Xining Lanzhou

Yinchuan

Hailar

Harbin

Changchun

Taiyuan

Qingdao

Zhengzhou

Taipei

Nanchang

Fuzhou

Hefei

Hong Kong

Changsha

Haikou

Nanning

Guiyang

Kunming

TIANJIN

SHANGHAI

GUANGZHOU

CHENG DOU

SHEN YANG

NAN JING

CHONGQING

SHENZHEN

HANGZHOU WU HAN

XI AN

10 Trivia Marketing International copy2015

$280 036 Million of ICT spends in 2014

Trivia Marketing International copy2015 11

Annual ICT Spends Sum of (Hardware Software Services Telecom) spend

East $ 111788 M

Northeast $ 19999 M

Northwest $ 17701 M

South Central $ 75500 M

North $ 32081 M

Southwest $ 22967 M

ICT spend budgets per region shown on this slide are calculated through Trivia Marketing solution adding each ICT company spend per region

ICT sector

Trivia Marketing International copy2015 12

The ICT sector is a pillar of the Chinese economy and helps to increase the domestic demand of the country which is closely followed by the Chinese government

Economic importance 2008 2011 2012 Evolution

GDP RMB bn 31405 51947 + 6541

GDP growth real 96 78 - 18 pts

GDP information transmission computer services and software RMB bn 786 978 + 2443

GDP information transmission computer services and software RMB bn of total 250 207 - 043 pts

ICT revenue growth 118 89 - 29pts

ICT Exports and Imports 2005 2011 2012 Evolution

ICT services exports USD bn 222 685 + 20855

ICT goods imports 253 18 - 73 pts

ICT goods exports 307 268 - 39 pts

ICT services exports 249 349 + 10 pts

Export of ICT services has experienced a period of growth above 20 before falling in 2009 However today the ICT market is ironed at a rate of double digit growth ICT represents now a third of countryrsquos exports of services

What you need to know about the ICT market The ICT market is relatively closed to competition and barriers to entry are rather high Foreign companies are only allowed to participate by joint-ventures and the capital held by foreign stockholders is limited to 50 for any company in the industry

ICT Spend insights TOP 10 countries China stands in 10th position worldwide regarding ICT spends per employee

The average level of development of most companies informatization in China is still in the early implementation stage Although IT hardware product average depreciable life is usually 5 years and IT software average depreciable life is

usually 10 years the actual depreciable life is higher than the regular number in many Chinese companies The unit price of IT hardware is tending downward on the Chinese market The average unit price of PC is about ￥3000+ RMB the average unit price of notebook is about￥5000+ RMB

There is an undeniable fact that pirated software have been available for years in China When China awakes she spends $370 billion to the cloud The turnover of the IT industry in China reached 1757 billion yuan ($2805 billion) in late 2013

Trivia Marketing International copy2015 13

ICT Spend insights

Trivia Marketing International copy2015 14

Softwarersquos and Piracy 2013-2014 status

The Chinese government as central as local levels has made efforts to eradicate software piracy in its various branches This has resulted in an investment of around 216 billion yuan ($34471 M) in software over the past three years

The official news agency Xinhua reported that since the Chinese government launched its anti-piracy project among its branches in 2010 until its conclusion in April he bought 3230000 units of office software according to the national copyright administration (NCA) It was reported in July 2012 that more than 1 billion yuan ($15959 M) was spent by the Chinese government to buy licensed softwares This amount was distributed to the end of June 2012 between 158823 operating system licenses 506693 copies of Office software as well as antivirus and other specialized softwares

This announcement is timely for China while an American commission released a study showing that the violation of the intellectual property of US companies by foreign groups costs the United States $ 300 billion (234 billion euros) every year According to the report China is responsible for 50-80 of these intellectual property thefts May 20th 2014 Reuters agency reports the Central Government Procurement Center issued the ban on installing Windows 8 on Chinese government computers as part of a notice on the use of energy-saving productshellip

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

Some gross financial indicators

IMF 2014 forecasts

Trivia Marketing International copy2015 8

GDP growth The IMF has just released its forecast for the year 2015 and it shows a GDP growth projection of 73 in line with estimates of Chinese officials In average 2010-2014 the Nation investment rate is 482 and 509 for the savings rate - government investment (rate - 477 and 50 in 2014 local authorities businesses and households) - figures that have no equivalent in the world China wages The unemployment rate is a flat rate set at 41 of the labor force which is contrary to the facts A 7-8 rate should be closer to the reality The standard workweek in China is 40 hours (eight hours per day five days per week) Minimum Chinese wage ($264) sit in the middle between the lowest (Bangladesh - $38) and the highest (Japan - $1319) Average annual wage increase 2001-2011 is close to 15

Sources IMF MOHRSS ndash 2013 ndash in yuan and China statistical yearbook 2013

1000 ndash 1100 yuan

1101 ndash 1200 yuan

1201 ndash 1300 yuan

1301 ndash 1400 yuan

1401 ndash 1500 yuan

1501 ndash 1600 yuan

Some gross financial indicators

Measuring Chinese Economic Efficiency

Trivia Marketing International copy2015 9

Business registration and economic output

In recent years economic output in China has been decreasing This is in line with the downward trend of the global economy weakening global demand However in Chinarsquos case there are also other internal factors that come into play In China ever-rising production costs have led to a continuous drop of output efficiency This in turn pushes down the value-added of industry

When comparing the registered capital and GDP per business entity one can see that a large capital input can only produce a small output Therefore while undergoing economic reforms China must adopt the most appropriate type of reform for itself Purely turning to ldquohigh value-addedrdquo industries may not adequately accommodate the large labor force in China Blindly raising capital input does not guarantee a result of high value-added economy or rapid technology advancement Other input factors must also be properly employed Otherwise the result will only be a drop in productivity leading to a weakening of the economyrsquos overall competitiveness

Sources CEIC 082014

The average registered capital per business entity kept reaching new heights in the past few years This fact not only indicates that a larger capital input is needed for economic development but also reflects an increasing cost of production

With the structural transformation of Chinarsquos economy underway economic development now focuses on high value-added industries As a result we see a growing need for new capital A capital-intensive economy has become the new direction of Chinarsquos future development This means that the greatest challenge in the upcoming future will be labor input with a higher education level and better skills

167

156147

133

094095093087

00

02

04

06

08

10

12

14

16

18

00

01

02

03

04

05

06

07

08

09

10

061

2013

056

2012

063

2011 2010

065

GDP per social capital

Social capital by business entity

GDP per business entity Business Registration and economic

output

China Largest business cities

Mongolia

Russia

Japan South Korea

India

BEIJING Kashi

Uumlruumlmqi

Shiquanhe

Lhasa

Xining Lanzhou

Yinchuan

Hailar

Harbin

Changchun

Taiyuan

Qingdao

Zhengzhou

Taipei

Nanchang

Fuzhou

Hefei

Hong Kong

Changsha

Haikou

Nanning

Guiyang

Kunming

TIANJIN

SHANGHAI

GUANGZHOU

CHENG DOU

SHEN YANG

NAN JING

CHONGQING

SHENZHEN

HANGZHOU WU HAN

XI AN

10 Trivia Marketing International copy2015

$280 036 Million of ICT spends in 2014

Trivia Marketing International copy2015 11

Annual ICT Spends Sum of (Hardware Software Services Telecom) spend

East $ 111788 M

Northeast $ 19999 M

Northwest $ 17701 M

South Central $ 75500 M

North $ 32081 M

Southwest $ 22967 M

ICT spend budgets per region shown on this slide are calculated through Trivia Marketing solution adding each ICT company spend per region

ICT sector

Trivia Marketing International copy2015 12

The ICT sector is a pillar of the Chinese economy and helps to increase the domestic demand of the country which is closely followed by the Chinese government

Economic importance 2008 2011 2012 Evolution

GDP RMB bn 31405 51947 + 6541

GDP growth real 96 78 - 18 pts

GDP information transmission computer services and software RMB bn 786 978 + 2443

GDP information transmission computer services and software RMB bn of total 250 207 - 043 pts

ICT revenue growth 118 89 - 29pts

ICT Exports and Imports 2005 2011 2012 Evolution

ICT services exports USD bn 222 685 + 20855

ICT goods imports 253 18 - 73 pts

ICT goods exports 307 268 - 39 pts

ICT services exports 249 349 + 10 pts

Export of ICT services has experienced a period of growth above 20 before falling in 2009 However today the ICT market is ironed at a rate of double digit growth ICT represents now a third of countryrsquos exports of services

What you need to know about the ICT market The ICT market is relatively closed to competition and barriers to entry are rather high Foreign companies are only allowed to participate by joint-ventures and the capital held by foreign stockholders is limited to 50 for any company in the industry

ICT Spend insights TOP 10 countries China stands in 10th position worldwide regarding ICT spends per employee

The average level of development of most companies informatization in China is still in the early implementation stage Although IT hardware product average depreciable life is usually 5 years and IT software average depreciable life is

usually 10 years the actual depreciable life is higher than the regular number in many Chinese companies The unit price of IT hardware is tending downward on the Chinese market The average unit price of PC is about ￥3000+ RMB the average unit price of notebook is about￥5000+ RMB

There is an undeniable fact that pirated software have been available for years in China When China awakes she spends $370 billion to the cloud The turnover of the IT industry in China reached 1757 billion yuan ($2805 billion) in late 2013

Trivia Marketing International copy2015 13

ICT Spend insights

Trivia Marketing International copy2015 14

Softwarersquos and Piracy 2013-2014 status

The Chinese government as central as local levels has made efforts to eradicate software piracy in its various branches This has resulted in an investment of around 216 billion yuan ($34471 M) in software over the past three years

The official news agency Xinhua reported that since the Chinese government launched its anti-piracy project among its branches in 2010 until its conclusion in April he bought 3230000 units of office software according to the national copyright administration (NCA) It was reported in July 2012 that more than 1 billion yuan ($15959 M) was spent by the Chinese government to buy licensed softwares This amount was distributed to the end of June 2012 between 158823 operating system licenses 506693 copies of Office software as well as antivirus and other specialized softwares

This announcement is timely for China while an American commission released a study showing that the violation of the intellectual property of US companies by foreign groups costs the United States $ 300 billion (234 billion euros) every year According to the report China is responsible for 50-80 of these intellectual property thefts May 20th 2014 Reuters agency reports the Central Government Procurement Center issued the ban on installing Windows 8 on Chinese government computers as part of a notice on the use of energy-saving productshellip

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

Measuring Chinese Economic Efficiency

Trivia Marketing International copy2015 9

Business registration and economic output

In recent years economic output in China has been decreasing This is in line with the downward trend of the global economy weakening global demand However in Chinarsquos case there are also other internal factors that come into play In China ever-rising production costs have led to a continuous drop of output efficiency This in turn pushes down the value-added of industry

When comparing the registered capital and GDP per business entity one can see that a large capital input can only produce a small output Therefore while undergoing economic reforms China must adopt the most appropriate type of reform for itself Purely turning to ldquohigh value-addedrdquo industries may not adequately accommodate the large labor force in China Blindly raising capital input does not guarantee a result of high value-added economy or rapid technology advancement Other input factors must also be properly employed Otherwise the result will only be a drop in productivity leading to a weakening of the economyrsquos overall competitiveness

Sources CEIC 082014

The average registered capital per business entity kept reaching new heights in the past few years This fact not only indicates that a larger capital input is needed for economic development but also reflects an increasing cost of production

With the structural transformation of Chinarsquos economy underway economic development now focuses on high value-added industries As a result we see a growing need for new capital A capital-intensive economy has become the new direction of Chinarsquos future development This means that the greatest challenge in the upcoming future will be labor input with a higher education level and better skills

167

156147

133

094095093087

00

02

04

06

08

10

12

14

16

18

00

01

02

03

04

05

06

07

08

09

10

061

2013

056

2012

063

2011 2010

065

GDP per social capital

Social capital by business entity

GDP per business entity Business Registration and economic

output

China Largest business cities

Mongolia

Russia

Japan South Korea

India

BEIJING Kashi

Uumlruumlmqi

Shiquanhe

Lhasa

Xining Lanzhou

Yinchuan

Hailar

Harbin

Changchun

Taiyuan

Qingdao

Zhengzhou

Taipei

Nanchang

Fuzhou

Hefei

Hong Kong

Changsha

Haikou

Nanning

Guiyang

Kunming

TIANJIN

SHANGHAI

GUANGZHOU

CHENG DOU

SHEN YANG

NAN JING

CHONGQING

SHENZHEN

HANGZHOU WU HAN

XI AN

10 Trivia Marketing International copy2015

$280 036 Million of ICT spends in 2014

Trivia Marketing International copy2015 11

Annual ICT Spends Sum of (Hardware Software Services Telecom) spend

East $ 111788 M

Northeast $ 19999 M

Northwest $ 17701 M

South Central $ 75500 M

North $ 32081 M

Southwest $ 22967 M

ICT spend budgets per region shown on this slide are calculated through Trivia Marketing solution adding each ICT company spend per region

ICT sector

Trivia Marketing International copy2015 12

The ICT sector is a pillar of the Chinese economy and helps to increase the domestic demand of the country which is closely followed by the Chinese government

Economic importance 2008 2011 2012 Evolution

GDP RMB bn 31405 51947 + 6541

GDP growth real 96 78 - 18 pts

GDP information transmission computer services and software RMB bn 786 978 + 2443

GDP information transmission computer services and software RMB bn of total 250 207 - 043 pts

ICT revenue growth 118 89 - 29pts

ICT Exports and Imports 2005 2011 2012 Evolution

ICT services exports USD bn 222 685 + 20855

ICT goods imports 253 18 - 73 pts

ICT goods exports 307 268 - 39 pts

ICT services exports 249 349 + 10 pts

Export of ICT services has experienced a period of growth above 20 before falling in 2009 However today the ICT market is ironed at a rate of double digit growth ICT represents now a third of countryrsquos exports of services

What you need to know about the ICT market The ICT market is relatively closed to competition and barriers to entry are rather high Foreign companies are only allowed to participate by joint-ventures and the capital held by foreign stockholders is limited to 50 for any company in the industry

ICT Spend insights TOP 10 countries China stands in 10th position worldwide regarding ICT spends per employee

The average level of development of most companies informatization in China is still in the early implementation stage Although IT hardware product average depreciable life is usually 5 years and IT software average depreciable life is

usually 10 years the actual depreciable life is higher than the regular number in many Chinese companies The unit price of IT hardware is tending downward on the Chinese market The average unit price of PC is about ￥3000+ RMB the average unit price of notebook is about￥5000+ RMB

There is an undeniable fact that pirated software have been available for years in China When China awakes she spends $370 billion to the cloud The turnover of the IT industry in China reached 1757 billion yuan ($2805 billion) in late 2013

Trivia Marketing International copy2015 13

ICT Spend insights

Trivia Marketing International copy2015 14

Softwarersquos and Piracy 2013-2014 status

The Chinese government as central as local levels has made efforts to eradicate software piracy in its various branches This has resulted in an investment of around 216 billion yuan ($34471 M) in software over the past three years

The official news agency Xinhua reported that since the Chinese government launched its anti-piracy project among its branches in 2010 until its conclusion in April he bought 3230000 units of office software according to the national copyright administration (NCA) It was reported in July 2012 that more than 1 billion yuan ($15959 M) was spent by the Chinese government to buy licensed softwares This amount was distributed to the end of June 2012 between 158823 operating system licenses 506693 copies of Office software as well as antivirus and other specialized softwares

This announcement is timely for China while an American commission released a study showing that the violation of the intellectual property of US companies by foreign groups costs the United States $ 300 billion (234 billion euros) every year According to the report China is responsible for 50-80 of these intellectual property thefts May 20th 2014 Reuters agency reports the Central Government Procurement Center issued the ban on installing Windows 8 on Chinese government computers as part of a notice on the use of energy-saving productshellip

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

China Largest business cities

Mongolia

Russia

Japan South Korea

India

BEIJING Kashi

Uumlruumlmqi

Shiquanhe

Lhasa

Xining Lanzhou

Yinchuan

Hailar

Harbin

Changchun

Taiyuan

Qingdao

Zhengzhou

Taipei

Nanchang

Fuzhou

Hefei

Hong Kong

Changsha

Haikou

Nanning

Guiyang

Kunming

TIANJIN

SHANGHAI

GUANGZHOU

CHENG DOU

SHEN YANG

NAN JING

CHONGQING

SHENZHEN

HANGZHOU WU HAN

XI AN

10 Trivia Marketing International copy2015

$280 036 Million of ICT spends in 2014

Trivia Marketing International copy2015 11

Annual ICT Spends Sum of (Hardware Software Services Telecom) spend

East $ 111788 M

Northeast $ 19999 M

Northwest $ 17701 M

South Central $ 75500 M

North $ 32081 M

Southwest $ 22967 M

ICT spend budgets per region shown on this slide are calculated through Trivia Marketing solution adding each ICT company spend per region

ICT sector

Trivia Marketing International copy2015 12

The ICT sector is a pillar of the Chinese economy and helps to increase the domestic demand of the country which is closely followed by the Chinese government

Economic importance 2008 2011 2012 Evolution

GDP RMB bn 31405 51947 + 6541

GDP growth real 96 78 - 18 pts

GDP information transmission computer services and software RMB bn 786 978 + 2443

GDP information transmission computer services and software RMB bn of total 250 207 - 043 pts

ICT revenue growth 118 89 - 29pts

ICT Exports and Imports 2005 2011 2012 Evolution

ICT services exports USD bn 222 685 + 20855

ICT goods imports 253 18 - 73 pts

ICT goods exports 307 268 - 39 pts

ICT services exports 249 349 + 10 pts

Export of ICT services has experienced a period of growth above 20 before falling in 2009 However today the ICT market is ironed at a rate of double digit growth ICT represents now a third of countryrsquos exports of services

What you need to know about the ICT market The ICT market is relatively closed to competition and barriers to entry are rather high Foreign companies are only allowed to participate by joint-ventures and the capital held by foreign stockholders is limited to 50 for any company in the industry

ICT Spend insights TOP 10 countries China stands in 10th position worldwide regarding ICT spends per employee

The average level of development of most companies informatization in China is still in the early implementation stage Although IT hardware product average depreciable life is usually 5 years and IT software average depreciable life is

usually 10 years the actual depreciable life is higher than the regular number in many Chinese companies The unit price of IT hardware is tending downward on the Chinese market The average unit price of PC is about ￥3000+ RMB the average unit price of notebook is about￥5000+ RMB

There is an undeniable fact that pirated software have been available for years in China When China awakes she spends $370 billion to the cloud The turnover of the IT industry in China reached 1757 billion yuan ($2805 billion) in late 2013

Trivia Marketing International copy2015 13

ICT Spend insights

Trivia Marketing International copy2015 14

Softwarersquos and Piracy 2013-2014 status

The Chinese government as central as local levels has made efforts to eradicate software piracy in its various branches This has resulted in an investment of around 216 billion yuan ($34471 M) in software over the past three years

The official news agency Xinhua reported that since the Chinese government launched its anti-piracy project among its branches in 2010 until its conclusion in April he bought 3230000 units of office software according to the national copyright administration (NCA) It was reported in July 2012 that more than 1 billion yuan ($15959 M) was spent by the Chinese government to buy licensed softwares This amount was distributed to the end of June 2012 between 158823 operating system licenses 506693 copies of Office software as well as antivirus and other specialized softwares

This announcement is timely for China while an American commission released a study showing that the violation of the intellectual property of US companies by foreign groups costs the United States $ 300 billion (234 billion euros) every year According to the report China is responsible for 50-80 of these intellectual property thefts May 20th 2014 Reuters agency reports the Central Government Procurement Center issued the ban on installing Windows 8 on Chinese government computers as part of a notice on the use of energy-saving productshellip

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

$280 036 Million of ICT spends in 2014

Trivia Marketing International copy2015 11

Annual ICT Spends Sum of (Hardware Software Services Telecom) spend

East $ 111788 M

Northeast $ 19999 M

Northwest $ 17701 M

South Central $ 75500 M

North $ 32081 M

Southwest $ 22967 M

ICT spend budgets per region shown on this slide are calculated through Trivia Marketing solution adding each ICT company spend per region

ICT sector

Trivia Marketing International copy2015 12

The ICT sector is a pillar of the Chinese economy and helps to increase the domestic demand of the country which is closely followed by the Chinese government

Economic importance 2008 2011 2012 Evolution

GDP RMB bn 31405 51947 + 6541

GDP growth real 96 78 - 18 pts

GDP information transmission computer services and software RMB bn 786 978 + 2443

GDP information transmission computer services and software RMB bn of total 250 207 - 043 pts

ICT revenue growth 118 89 - 29pts

ICT Exports and Imports 2005 2011 2012 Evolution

ICT services exports USD bn 222 685 + 20855

ICT goods imports 253 18 - 73 pts

ICT goods exports 307 268 - 39 pts

ICT services exports 249 349 + 10 pts

Export of ICT services has experienced a period of growth above 20 before falling in 2009 However today the ICT market is ironed at a rate of double digit growth ICT represents now a third of countryrsquos exports of services

What you need to know about the ICT market The ICT market is relatively closed to competition and barriers to entry are rather high Foreign companies are only allowed to participate by joint-ventures and the capital held by foreign stockholders is limited to 50 for any company in the industry

ICT Spend insights TOP 10 countries China stands in 10th position worldwide regarding ICT spends per employee

The average level of development of most companies informatization in China is still in the early implementation stage Although IT hardware product average depreciable life is usually 5 years and IT software average depreciable life is

usually 10 years the actual depreciable life is higher than the regular number in many Chinese companies The unit price of IT hardware is tending downward on the Chinese market The average unit price of PC is about ￥3000+ RMB the average unit price of notebook is about￥5000+ RMB

There is an undeniable fact that pirated software have been available for years in China When China awakes she spends $370 billion to the cloud The turnover of the IT industry in China reached 1757 billion yuan ($2805 billion) in late 2013

Trivia Marketing International copy2015 13

ICT Spend insights

Trivia Marketing International copy2015 14

Softwarersquos and Piracy 2013-2014 status

The Chinese government as central as local levels has made efforts to eradicate software piracy in its various branches This has resulted in an investment of around 216 billion yuan ($34471 M) in software over the past three years

The official news agency Xinhua reported that since the Chinese government launched its anti-piracy project among its branches in 2010 until its conclusion in April he bought 3230000 units of office software according to the national copyright administration (NCA) It was reported in July 2012 that more than 1 billion yuan ($15959 M) was spent by the Chinese government to buy licensed softwares This amount was distributed to the end of June 2012 between 158823 operating system licenses 506693 copies of Office software as well as antivirus and other specialized softwares

This announcement is timely for China while an American commission released a study showing that the violation of the intellectual property of US companies by foreign groups costs the United States $ 300 billion (234 billion euros) every year According to the report China is responsible for 50-80 of these intellectual property thefts May 20th 2014 Reuters agency reports the Central Government Procurement Center issued the ban on installing Windows 8 on Chinese government computers as part of a notice on the use of energy-saving productshellip

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

ICT sector

Trivia Marketing International copy2015 12

The ICT sector is a pillar of the Chinese economy and helps to increase the domestic demand of the country which is closely followed by the Chinese government

Economic importance 2008 2011 2012 Evolution

GDP RMB bn 31405 51947 + 6541

GDP growth real 96 78 - 18 pts

GDP information transmission computer services and software RMB bn 786 978 + 2443

GDP information transmission computer services and software RMB bn of total 250 207 - 043 pts

ICT revenue growth 118 89 - 29pts

ICT Exports and Imports 2005 2011 2012 Evolution

ICT services exports USD bn 222 685 + 20855

ICT goods imports 253 18 - 73 pts

ICT goods exports 307 268 - 39 pts

ICT services exports 249 349 + 10 pts

Export of ICT services has experienced a period of growth above 20 before falling in 2009 However today the ICT market is ironed at a rate of double digit growth ICT represents now a third of countryrsquos exports of services

What you need to know about the ICT market The ICT market is relatively closed to competition and barriers to entry are rather high Foreign companies are only allowed to participate by joint-ventures and the capital held by foreign stockholders is limited to 50 for any company in the industry

ICT Spend insights TOP 10 countries China stands in 10th position worldwide regarding ICT spends per employee

The average level of development of most companies informatization in China is still in the early implementation stage Although IT hardware product average depreciable life is usually 5 years and IT software average depreciable life is

usually 10 years the actual depreciable life is higher than the regular number in many Chinese companies The unit price of IT hardware is tending downward on the Chinese market The average unit price of PC is about ￥3000+ RMB the average unit price of notebook is about￥5000+ RMB

There is an undeniable fact that pirated software have been available for years in China When China awakes she spends $370 billion to the cloud The turnover of the IT industry in China reached 1757 billion yuan ($2805 billion) in late 2013

Trivia Marketing International copy2015 13

ICT Spend insights

Trivia Marketing International copy2015 14

Softwarersquos and Piracy 2013-2014 status

The Chinese government as central as local levels has made efforts to eradicate software piracy in its various branches This has resulted in an investment of around 216 billion yuan ($34471 M) in software over the past three years

The official news agency Xinhua reported that since the Chinese government launched its anti-piracy project among its branches in 2010 until its conclusion in April he bought 3230000 units of office software according to the national copyright administration (NCA) It was reported in July 2012 that more than 1 billion yuan ($15959 M) was spent by the Chinese government to buy licensed softwares This amount was distributed to the end of June 2012 between 158823 operating system licenses 506693 copies of Office software as well as antivirus and other specialized softwares

This announcement is timely for China while an American commission released a study showing that the violation of the intellectual property of US companies by foreign groups costs the United States $ 300 billion (234 billion euros) every year According to the report China is responsible for 50-80 of these intellectual property thefts May 20th 2014 Reuters agency reports the Central Government Procurement Center issued the ban on installing Windows 8 on Chinese government computers as part of a notice on the use of energy-saving productshellip

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

ICT Spend insights TOP 10 countries China stands in 10th position worldwide regarding ICT spends per employee

The average level of development of most companies informatization in China is still in the early implementation stage Although IT hardware product average depreciable life is usually 5 years and IT software average depreciable life is

usually 10 years the actual depreciable life is higher than the regular number in many Chinese companies The unit price of IT hardware is tending downward on the Chinese market The average unit price of PC is about ￥3000+ RMB the average unit price of notebook is about￥5000+ RMB

There is an undeniable fact that pirated software have been available for years in China When China awakes she spends $370 billion to the cloud The turnover of the IT industry in China reached 1757 billion yuan ($2805 billion) in late 2013

Trivia Marketing International copy2015 13

ICT Spend insights

Trivia Marketing International copy2015 14

Softwarersquos and Piracy 2013-2014 status

The Chinese government as central as local levels has made efforts to eradicate software piracy in its various branches This has resulted in an investment of around 216 billion yuan ($34471 M) in software over the past three years

The official news agency Xinhua reported that since the Chinese government launched its anti-piracy project among its branches in 2010 until its conclusion in April he bought 3230000 units of office software according to the national copyright administration (NCA) It was reported in July 2012 that more than 1 billion yuan ($15959 M) was spent by the Chinese government to buy licensed softwares This amount was distributed to the end of June 2012 between 158823 operating system licenses 506693 copies of Office software as well as antivirus and other specialized softwares

This announcement is timely for China while an American commission released a study showing that the violation of the intellectual property of US companies by foreign groups costs the United States $ 300 billion (234 billion euros) every year According to the report China is responsible for 50-80 of these intellectual property thefts May 20th 2014 Reuters agency reports the Central Government Procurement Center issued the ban on installing Windows 8 on Chinese government computers as part of a notice on the use of energy-saving productshellip

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

ICT Spend insights

Trivia Marketing International copy2015 14

Softwarersquos and Piracy 2013-2014 status

The Chinese government as central as local levels has made efforts to eradicate software piracy in its various branches This has resulted in an investment of around 216 billion yuan ($34471 M) in software over the past three years

The official news agency Xinhua reported that since the Chinese government launched its anti-piracy project among its branches in 2010 until its conclusion in April he bought 3230000 units of office software according to the national copyright administration (NCA) It was reported in July 2012 that more than 1 billion yuan ($15959 M) was spent by the Chinese government to buy licensed softwares This amount was distributed to the end of June 2012 between 158823 operating system licenses 506693 copies of Office software as well as antivirus and other specialized softwares

This announcement is timely for China while an American commission released a study showing that the violation of the intellectual property of US companies by foreign groups costs the United States $ 300 billion (234 billion euros) every year According to the report China is responsible for 50-80 of these intellectual property thefts May 20th 2014 Reuters agency reports the Central Government Procurement Center issued the ban on installing Windows 8 on Chinese government computers as part of a notice on the use of energy-saving productshellip

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

ICT Spend insights

Trivia Marketing International copy2015 15

16 billion Chinese people on the cloud

The twelfth five-year plan of the Chinese government plans to more than double the capacity of its data centers to develop cloud in China IDC has published a projection of global spending for hosting private cloud services which according to its analysts will exceed $ 24 billion in 2016 However the same day the BroadGroup published a study - China Cloud Challenges and Opportunities in Chinas Cloud Datacenter Deployment - which shows that the Chinese government has launched a massive program to more than double the capacity of Chinese data centers and support cloud in China Combined with the known projects of investment in data centers in China - IBM for example just preach the construction of a third data center - the total investment for the development of a Chinese cloud estimated by BroadGroup peak at 370 billion in 2016 The comparison between the two analyzes BroadGroup and IDC unveils that China will spend 15 times for his cloud what the rest of the world in the private cloud projects will How dizzy The Chinese plan aims to extend and deploy data centers to develop new platforms for cloud 109 projects have been identified some of which would focus on the construction of new centers Projects concern initially clouds of 5 cities and would be extended to 15 provinces five of them globalizing about 88 of investments One would focus on the Northern provinces of China 56 of their capacity would be devoted But the main beneficiaries of the plan would be the three Chinese telecom giants They alone occupied 55 of Chinese datacenters in 2012

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

ICT Spend insights

Trivia Marketing International copy2015 16

ICT budget 2013-14

Both revenue and profit of Chinas software and information technology sector slowed in the first 11 months of 2014 The sector generated around 1600 billion yuan ($ 25535 billion) in revenue in the first 11 months of 2014 up 201 percent from a year earlier and surpassing the total revenue for the full year of 2013 the Ministry of Industry and Information Technology (MIIT) said in a statement

Chinese IT industry has maintained steady growth over the last years while China has become the worlds largest producer of mobile phones computers and color televisions

With the development of the Internet of Things cloud computing and big data the computer industry is facing new opportunities for growth In the TOP 20 of the largest IT markets there are China India Israel and Sweden that will record the fastest growing rates and reach the level of the United States

The Electronics Industry and Information Department will promote innovation in order to strengthen its competitiveness as it intends to encourage the consumption of products information and integration between industrialization and informatization services said Ding Wengwu the Head of the Department

China thus plans make a new engine of domestic demand and economic growth

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2008 2009 2010 2011 2012 2013

ICT Spend insights

Trivia Marketing International copy2015 17

Computer Highlights Computersampworkstations mn

Notebooks amp Micro computers mn

Global importance China is both the leading producer and the largest consumer of computer products in the world Besides demand for Chinese products in the sector is growing both in China and abroad At the same time technology is developing at a rapid rate and this is further driving new consumption and promoting product upgrades

Catering to the Needs of New Businesses With the continuous growth of China a large number of new companies have emerged which require expanding their data processing capacity This is certainly to remain one of the key growth drivers in the computer market for some time to come

Tablets amp Laptops A notable shift from desktop PCs to laptops and tablets is one of the defining characteristics for the subsector Sales of tablets more than doubled over 2012 Meanwhile mobile computing is also gaining further ground against more traditional platforms

Specifics The proportion of commercial computers demand in China is approximately 50 of the total which is comparable to a global ratio of 35 to 65 for consumer computers vs commercial ones Another unique feature of the market is the strong preference for 14-inch notebook displays accounting for 70 of total notebook computer shipments in China against less 30 for the rest of the World

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

Total annual ICT spend by largest cities

Trivia Marketing International copy2015 18

10105

beijing

12485

11169

shanghai

2818

chengdu

2414

2801

3110

chongqing 4169

tianjin

4236

guangzhou 6753

shenzhen

xian

wuhan

nanjing

2113 shenyang

4332

hangzhou

Total annual ICT spend M$

SHANGHAI

BEIJING

SHENZHEN GUANGZHOU

TIANJIN

ICT spend budgets by largest cities shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per city

TOP 5 cities accounts for 15 of total spends

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

Total annual ICT spend by province

guangdong 40260 jiangsu 27634

zhejiang 27586 shandong 20482

sichuan 15320 hebei 12685

shanghai 12490 henan 12322 beijing 11184

liaoning 9314 hubei 8908 fujian 8654

hunan 8439 shaanxi 6846

anhui 6450 shanxi 6128

heilongjiang 6059 jiangxi 5543

guangxi 4918 jilin 4626

yunnan 4432 tianjin 4335

inner mongolia 3750 gansu 3148

xinjiang 2972 guizhou 2762

Total annual ICT spend M$

ICT spend budgets by Province shown on this slide are calculated through Trivia marketing solution adding each ICT company spend per Province

19 Trivia Marketing International copy2015

TOP 5 provinces accounts for 45 of total spends in China

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

27643

BP HARDWARE

34928

61265 57518

BP TOTAL

124088

278424 280036

BP TELECOM

42440

189229

159368

BP SERVICES

36484

18899

BP SOFTWARE

10235 9030

35507

Gartner (M USD)

TRIVIA (M USD)

IDC (M USD)

To the contrary of IDC and TRIVIA GARTNER does NOT include voice and data costs in their Telecom Spend Approx $95M

Top-down analysis shows Trivia line-of-business ICT gross budgets fall close to IDC and Gartner forecasts as well as Trivia Total ICT gross budget

Triviarsquos budgets are based on real figures collected through surveys conducted annually with IT exec across the country

Trivia ICT spend accuracy validation against IDC amp Gartner China ICT spend Gross Budget by Line-of Businesses

20 Trivia Marketing International copy2015

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

Trivia Marketing Geographical Expertise

Trivia Marketing International copy2015 21

hellip More than 125 million companies for which we know their ICT spendshellip

Done Work in Progress ndash Q1 2015

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

Data Management

Benefits from the Trivia Marketing CBP Solution Find the prospects most likely to buy your products within the next 12 months Ensure total market coverage and increase market penetration Enhance knowledge of customers prospects with additional indicators to enable accurate analytics and more

precise segmentation Bring economic content to your marketing strategy Provide better relevance of marketing actions Increase sales response rates and sales revenues Ensure a better deliverability of messages (across channels) Increase accuracy and depth of the total customer view - 360deg

22 Trivia Marketing International copy2015

Get one step ahead of your competitors

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing

wwwtrivia-marketingcom

Thank you

Trivia Marketing International

+33 (0) 60 92 41 32

15 avenue de Norvegravege Parc drsquoActiviteacute de Courtabœuf 91140 Villebon-sur-Yvette

contacttrivia-marketingcom TriviaMarketingInternational

TriviaMarketing