GAPP Kurt De Buck Bregt Bourgeus Agenda WHAT IS GAPP GAPP IN BELGIUM PC PRIVE – THE LAW PC PRIVE – YOUR OPPORTUNITY.

GAPP GAPP

Kurt De BuckKurt De Buck

Bregt BourgeusBregt Bourgeus

AgendaAgenda

WHAT IS GAPPWHAT IS GAPP

GAPP IN BELGIUMGAPP IN BELGIUM

PC PRIVE – THE LAWPC PRIVE – THE LAW

PC PRIVE – YOUR OPPORTUNITYPC PRIVE – YOUR OPPORTUNITY

GAPPGAPP

WHAT IS IT?WHAT IS IT?

Government Assisted PC ProgramsGovernment Assisted PC Programs

Empowered Empowered centralisedcentralised Government body Government body

Industry consortiumIndustry consortium

Communication CampaignCommunication Campaign

Improve Improve ICT skills ICT skills citizenscitizens

Digital Digital InclusionInclusion

Improve Improve EducationEducation

Build Build efficient efficient

eGov infra-eGov infra-structurestructure

Gov.priorities

Intel expertise

Enabling greater PC and solutions penetration thru Enabling greater PC and solutions penetration thru sustainable usage models supported by sustainable usage models supported by

government incentives and flexible PC acquisition government incentives and flexible PC acquisition schemesschemes

Government Assisted PC ProgramsGovernment Assisted PC Programs

Joint Governement & Industry cooperation Joint Governement & Industry cooperation – Telco: internetTelco: internet– Local Integrator: PCLocal Integrator: PC– Bank: low interest financing Bank: low interest financing – Repay through Telephone bill …Repay through Telephone bill …– Government: Sponsors – Public + visible CampaignGovernment: Sponsors – Public + visible Campaign

Various Options of AudienceVarious Options of Audience– EmployeesEmployees = EPP – Employee Purchase Program = EPP – Employee Purchase Program– Education Education = SPP – Student Purchase Program= SPP – Student Purchase Program– xPP xPP = different demography segments – e.g. senior = different demography segments – e.g. senior

(SePP), low income etc.(SePP), low income etc.– SME link to eGovtSME link to eGovt = Mature + Emerging mkts = Mature + Emerging mkts

WORLD WIDE

GAPPGAPP

IN BELGIUM?IN BELGIUM?

LOW PC HOUSEHOLD LOW PC HOUSEHOLD PENETRATION (52 TO 54%) PENETRATION (52 TO 54%)

= BELOW EUROPEAN = BELOW EUROPEAN AVERAGEAVERAGE

ONE GAPP PROGRAM LIVE ONE GAPP PROGRAM LIVE IN BELGIUM IN BELGIUM

PC PRIVEPC PRIVEEMPLOYEE PURCHASE PROGRAMEMPLOYEE PURCHASE PROGRAM

Gov’t efficienciesGov’t efficiencies Country Country

competitivenesscompetitiveness Build eGov Build eGov

InfrastructureInfrastructure Computer LiteracyComputer Literacy Shrink Digital Shrink Digital

DivideDivide

Employees

Government

Industry

Employers

Cost savingsCost savings EducationEducation CareerCareer ConvenienceConvenience

Up-skill Up-skill WorkforceWorkforce

Employee Employee ProductivityProductivity

Add’l. Add’l. Employee Employee BenefitBenefit

Job FlexibilityJob Flexibility Operational Operational

savingssavings

Sell Up Sell Up New route to New route to

MarketMarket TAM TAM

ExpansionExpansion Pull for Other Pull for Other

Equip/SvcsEquip/Svcs

PC PRIVEPC PRIVE

Industry

Industry= YOU

PC PRIVE PC PRIVE

THE LAWTHE LAW

EMPLOYEE BECOMES OWNER OF PC & EMPLOYEE BECOMES OWNER OF PC & PERIPHERALS PERIPHERALS

Employee does the purchase within the guidelines of the Employee does the purchase within the guidelines of the employer plan + pays VAT + pre finances the purchase + employer plan + pays VAT + pre finances the purchase + brings in the invoicebrings in the invoice

Offer can include printer, scanner, PDA (as peripheral) but Offer can include printer, scanner, PDA (as peripheral) but also broadband & softwarealso broadband & software

Reimbursement by the employer limited to max 60% of the Reimbursement by the employer limited to max 60% of the purchase price (excluding VAT) and with maximum of 1250 purchase price (excluding VAT) and with maximum of 1250 €€

OPTION 1OPTION 1FOR ALL EMPLOYEES

SAME OFFER

EXAMPLEEXAMPLE

EMPLOYEE

EMPLOYER

Reimburses 60% of 1600 €€ = 960 €€

Tax recup (33,99%) = 326 €€

COST = 634 COST = 634 €€

Pays 40% of the 1600 €€ + VAT

COST = 976 €€

1600 €€

+ 336 € € (VAT)

= 1936 €€

EMPLOYER OWNS THE PC AND PERIPHERALSEMPLOYER OWNS THE PC AND PERIPHERALS

Employer buys the material and offers it to the employee Employer buys the material and offers it to the employee for home usagefor home usage

A. This home usage is considered a taxable benefit, fixed A. This home usage is considered a taxable benefit, fixed at 180 at 180 €€ for the PC & 60 for the PC & 60 €€ for internet per year for internet per year

B. The employee does not have to report the benefits to B. The employee does not have to report the benefits to tax authorities when he pays these amounts to the tax authorities when he pays these amounts to the employer directly (employer directly (see example next slidesee example next slide))

OPTION 2OPTION 2FOR DIFFERENT EMPLOYEES, DIFFERENT OFFER POSSIBLE

EXAMPLEEXAMPLE

1600 €€

+ 336 € € (VAT)

= 1936 €€

EMPLOYEE

EMPLOYER

Buys PC (1936 €)€) & 3 years BB (1260 €) = €) = 3196 € OR € OR 1065 €€ a year

Minus 240 €€ (employee contribution) = 825 €€

Tax recup = 280 €€

Final COST = 545 €€

PER MONTH/EMPLOYEE = 45 €€

Pays 240 €€ a year (PC & internet) to employer

PER MONTH = 20 EUR

PC PRIVE PC PRIVE

A SUCCES?A SUCCES?

WHICH PERCENTAGE OF COMPANIES IS WHICH PERCENTAGE OF COMPANIES IS AWARE?AWARE?

WHO DECIDES?WHO DECIDES?

WHICH PERCENTAGE HAS ROLLED OUT?WHICH PERCENTAGE HAS ROLLED OUT?

ARE EMPLOYEES HAPPY?ARE EMPLOYEES HAPPY?

……..

PC PRIVE PC PRIVE SURVEYSURVEY

UNDER UNDER EMBARGOEMBARGO

Investigating roll out EPP

9%

Not familiar with EPP25%

Rolled out EPP18%

Decided not to roll out EPP

48%

1 OUT OF 4 COMPANIES IS NOT AWARE ABOUT EPP

- MAIN SOURCE OF INFORMATION IS PRESS

- BIG POTENTIAL FOR RESELLERS TO PC PRIVE DISCUSS FTF

NEED TO REMOVE ROADBLOCKS

BUDGET NEEDS & FOCUS ON MUTUAL BENEFITS

18% WITH EPP EXPERIENCE18% WITH EPP EXPERIENCE

Top 2 reasons for roll out– increase IT skills employees – incentive or extra bonus

1 out of 2 doesn’t know which option

85 % initiated by HR department

Top 1 obstacle = THE BUDGET

Top 3 elements EPP package– 81% PC, 31% printer, NB 11%

94% OF THE EMPLOYEES IS SATISFIED ABOUT PC PRIVE

Employee Satisfaction

6%

74%

3%

3%

14%

Extremely_satisf ied

Satisf ied

Neutral

Not_satisfied

No response

evaluated EPP in the past, 25%

evaluating EPP right now, 5%

not evaluating EPP at all, 68%

82% WITHOUT EPP EXPERIENCE

Up to 70% of EPP projects evaluations initiated by HR,– 19% by IT – 17% by CEO

79% evaluates internally, only 13% with external partner

MAJORITY OF COMPANIES IS NOT EVALUATING PC PRIVE

FUTURE PC PRIVE PLANSFUTURE PC PRIVE PLANS

74 % has NO plans–Lack of budget (17%)–Lack of management commitment

(10%)

14% has plans

Timing %

2005 17%

2006 34%

2007 17%

2008 7%

MAJORITY OF COMPANIES HAS NO PLANS …………… YET

YOUR OPPORTUNITYYOUR OPPORTUNITY

• Those who have tried it are enthusiastic. It works!

• 25% are not familiar. Go sell it!

• The obstacles can be addressed

• Projects got stuck in complex decision making – sell a total/simple solution!

• People are sitting with wrong assumptions

• PC Privé is a social investment and builds loyalty – do not use it in wage negotiations!

• Blue collar workers are enthusiastic about PC Privé!

PC PRIVE PC PRIVE

VEDIOR VEDIOR INTERIM INTERIM

TESTIMONIALTESTIMONIAL

VEDIOR INTERIMVEDIOR INTERIM

PC PRIVE PC PRIVE

GO FOR IT!GO FOR IT!

THANK YOU THANK YOU

INTEL’S GAPP INTEL’S GAPP TEAM IS HERE TEAM IS HERE TO HELP YOUTO HELP YOU