Balanced Portfolio and Gross Margin Upside Drive 1Q Results

May 4, 2016 CDW Corporation Balanced Portfolio and Gross Margin Upside Drive 1Q Results MORGAN STANLEY & CO. LLC Katy L. Huberty, CFA Kathryn.Huberty@morganstanley.com Jerry Liu Jerry.Y.Liu@morganstanley.com Elizabeth Elliott Elizabeth.Elliott@morganstanley.com CDW Corporation May 4, 2016 +1 212 761-6249 +1 212 761-3735 +1 212 761-3632 Industry View Cautious Stock Rating Equal-weight Price Target $40.00 CDW delivers in a weak macro environment, as better Corporate and Solutions (including cloud products) sales offset weaker Education/Health and Hardware. CDW expects the environment to improve. We model CY16 EPS of $3.28 (from $3.25) and remain Equal-weight. What's Changed? From: To: CDW Corporation Price Target $39.00 $40.00 Public deceleration offset by strong Corporate sector results. Despite pockets of industry weakness and an overall slower economic backdrop, CDW was able to deliver in-line 1Q results, which highlights the strength of a balanced portfolio of verticals. Specifically, weakness in Education and Health was offset with accelerating growth in Government and strength in Corporate. By product category, Services growth of 9% outpaced both Software growth of 7% and Hardware growth of 3%. Demand for warranties and CDW-delivered services provided strong Services growth and a higher mix of 100% gross margin net service contract revenues. Within Hardware, storage increased mid-single digits and included high demand for flash, which accounted for 5% of total organic growth in the quarter. Server solutions increased mid-single digit, helped by demand for server virtualization, although stand alone server hardware declined. Looking forward, management expects lumpiness in server demand ahead of new chipsets. Management expects the macro environment to improve, and Dell and Kelway to add to growth. While management maintained outlook for 2-3% IT spending growth, the company sees upside from shipping product for larger deals later in the year. Furthermore, expected improvement in GDP could result in higher spend from small to medium businesses, which are closely tied to the economy. Dell and Kelway remain on track and are expected to contribute 60bps and 650-700bps of growth to the first half of the year. CDW now believes the company is likely to achieve closer to the high end of the range for Kelway following strong performance in 1Q16. Gross margin and SG&A limit bottom line impact. Better mix of net service contract revenues (NSCR) in services helped drive 52bps sequential margin expansion 16.8%. However, the company expects gross margin to trend lower through the remainder of the year. We model 16.4% for the full year. Adjusted SG&A is expected to grow faster than sales as a result of increased coworker count and related coworker expenses. CDW added 50 CDW Corporation ( CDW.O, CDW US ) IT Hardware / United States of America Stock Rating Equal-weight Industry View Cautious Price target $40.00 Shr price, close (May 4, 2016) $40.66 Mkt cap, curr (mm) $6,859 52-Week Range $46.92-30.40 Fiscal Year Ending 12/15 12/16e 12/17e 12/18e ModelWare EPS ($) 2.35 2.53 2.87 3.29 Prior ModelWare EPS 2.35 2.59 2.93 3.30 ($) P/E 17.9 16.1 14.2 12.4 Consensus EPS ($) 2.93 3.26 3.60 4.08 Div yld (%) 0.7 1.1 1.6 2.3 Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare framework = Consensus data is provided by Thomson Reuters Estimates e = Morgan Stanley Research estimates QUARTERLY MODELWARE EPS ($) 2016e 2016e 2017e 2017e Quarter 2015 Prior Current Prior Current Q1 0.32-0.46a 0.56 0.58 Q2 0.63 0.63 0.61 0.73 0.74 Q3 0.88 0.80 0.78 0.89 0.81 Q4 0.52 0.70 0.67 0.74 0.75 e = Morgan Stanley Research estimates, a = Actual Company reported data Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision. For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report. 1

North America coworkers in the quarter and first half-loaded its plan to added 50-75 coworkers during 2016. CDW Corporation May 4, 2016 We raise CY16 EPS on 1Q beat. CY16 EPS moves to $3.28 (from $3.25) which pushes our PT to $40, representing 9x adj. EBITDA in line with IT Services peers. We expect CDW to grow at the top end of their guidance range organically. Combined with incremental contribution from the Dell partnership and Kelway, we model Y/Y revenue and EPS growth of 10% and 12%, respectively. Morgan Stanley is currently acting as lead financial advisor to EMC Corporation ( EMC ) with respect to its definitive agreement to be acquired by Dell Inc., and Dell s owners, Michael S. Dell, MSD Partners L.P., and Silver Lake, as announced on October 12, 2015. The proposed acquisition is subject to customary conditions, including receipt of required regulatory and EMC stockholder approvals. This report and the information provided herein is not intended to (i) provide voting advice, (ii) serve as an endorsement of the proposed transaction, or (iii) result in the procurement, withholding or revocation of a proxy or any other action by a security holder. EMC has agreed to pay fees to Morgan Stanley for its financial advice, including transaction fees that are contingent upon the consummation of the proposed transaction. Please refer to the notes at the end of the report. 2

Risk Reward CDW Corporation May 4, 2016 Balanced Outlook as US IT Budget Growth and CDW Share Gains are Priced In $ 60 50 40 30 20 $38.34 $51.00 (+33%) $40.00 (+4%) $21.00 (-45%) Investment Thesis Consistent execution, strong customer relationships, and wide variety of vendors and products allow CDW to gain share and grow organically 2-3 points faster than US IT spending long-term. Cloud computing could become disruptive to CDW given its high exposure to traditional hardware and software products and its mid-market customer base. 10 0 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 May-17 Price Target $40 Bull $51 10x 2016e Adjusted EBITDA of $1,175M Price Target (May-17) Historical Stock Performance Current Stock Price Source: Thomson Reuters, Morgan Stanley Research Derived from base case scenario. WARNINGDONOTEDIT_RRS4RL~CDW.O~ US and UK IT budget growth accelerates and CDW continues to gain share. CDW revenue grows 13% in 2016 driven by Kelway synergies and the Dell partnership. Adjusted EBITDA margin reaches 8% with shift to higher-margin software and services. Stock trades at 10x EV/EBITDA, in line with top-tier industrial distributors. Key Debates Can CDW continue to expand margins? Gross margin could improve as cloud and SaaS product mix increases and we expect EBITDA margin to improve to closer to 8% over time, and could go even higher. How will cloud computing impact CDW s revenue and margins? Shift to cloud computing could be faster than investors expect, especially in SMBs. We see a net negative impact to revenue and profit dollars longer-term. However, CDW's record of strong execution and share gains suggest weaker players will see the pressure first. Base $40 9x 2016e Adjusted EBITDA of $1,109M Bear $21 7x 2016e Adjusted EBITDA of $950M CDW outgrows the broader US and UK IT markets as expected. Revenue grows 10% in 2016 or ~5% in the US ex- Kelway and incremental revenue from the Dell partnership announced in October 2015. Adjusted EBITDA margin expands Y/Y to 7.7%, at the high end of management's medium-term targets. We expect EPS to grow low-double digits including contribution from Dell and Kelway. Shares trade at 9x EV/EBITDA, in line IT services peers and at a meaningful premium to IT distributors. Cloud computing proves disruptive to resellers and macro uncertainty slows IT spending. CDW revenue grows 7% in 2016 reflecting a flat IT spending environment and adjusted EBITDA margin declines Y/Y to low end of guidance (7.4-7.6%). CDW benefits from lower hiring and mix but higher-margin services revenue cannot offset lower hardware revenue due to pricing pressure. Shares trade at 7x EV/EBITDA, closer to traditional IT hardware and distributor companies and close to its IPO price. Potential Catalysts US and/or UK IT budget growth improves in 2H16 Solutions and services revenue mix increases as CDW benefits from new cloud partnerships Kelway and Dell partnership generate higher revenue synergies than expected Competitors becoming less price aggressive Risks to Achieving Price Target Revenue growth disappoints due to hardware headwinds, especially PCs and storage, or due to delay in government programs, like e-rate Macro concerns slow down spending, especially for the Small Business segment Cloud computing disruption faster and more significant than CDW expected Weak demand increases pricing pressure 3

Analysis Exhibit 1: CDW Variance 2Q16 and 2016 Expectations Consensus estimates (pre-call): 2Q16 revenue of $3.7B and non-gaap EPS $0.84. 2016 revenue of $14.2B and non-gaap EPS of $3.26. MS estimates (pre-call): 2Q16 revenue of $3.7B and non-gaap EPS $0.79. 2016 revenue of $14.2B and non-gaap EPS of $3.25. Company guidance: Revenue outpace US IT market growth by 2-3 points, which is expected to grow between 2-3 percent (excludes impact from Kelway/Dell). ($ Millions) F1Q14 A F2Q14 A F3Q14 A F4Q14 A F1Q15 A F2Q15 A F3Q15 A F4Q15 A F1Q16 A F1Q16 E % Delta Share Impact Cons. Est. Total Revenues 2,652 3,106 3,266 3,050 2,755 3,314 3,501 3,418 3,117 3,108 0% $0.01 3,112 Y/Y Growth 10% 12% 14% 12% 4% 7% 7% 12% 13% 13% Q/Q Growth -2% 17% 5% -7% -10% 20% 6% -2% -9% -9% Gross Profit 425 497 507 492 457 535 567 558 525 504 4% $0.08 Gross profit margin 16.0% 16.0% 15.5% 16.1% 16.6% 16.1% 16.2% 16.3% 16.8% 16.2% $0.07 16.4% SG&A 261 274 285 290 276 291 321 339 329 308 7% ($0.08) % of Sales 10% 9% 9% 10% 10% 9% 9% 10% 11% 10% Advertising expense 29 35 37 38 29 38 41 39 34 33 4% ($0.00) % of Sales 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% Total Operating Expenses 289 309 323 328 305 329 363 378 364 341 7% Operating Income 136 188 185 164 152 206 205 180 161 163-1% $0.01 Operating Margin 5.1% 6.1% 5.7% 5.4% 5.5% 6.2% 5.8% 5.3% 5.2% 5.2% Interest income/(expense), net -50-49 -50-49 -45-38 -39-38 -38-37 4% ($0.01) Tax rate 37% 37% 38% 35% 37% 37% 39% 37% 37% 38% $0.00 Non-GAAP EPS $0.47 $0.67 $0.64 $0.59 $0.56 $0.81 $0.84 $0.73 $0.67 $0.63 6% $0.04 $0.66 Share Count 172 173 173 173 174 173 171 170 169 171-1% $0.01 Segment Revenue Summary F1Q14 A F2Q14 A F3Q14 A F4Q14 A F1Q15 A F2Q15 A F3Q15 A F4Q15 A F1Q16 A F4Q15 E Corporate 1,536 1,688 1,654 1,727 1,610 1,799 1,765 1,795 1,692 1,646 3% Y/Y Growth 9% 10% 13% 11% 5% 7% 7% 4% 5% 5% Medium / Large 1,296 1,418 1,397 1,468 1,342 1,521 1,491 1,522 1,411 1,373 3% Y/Y Growth 10% 8% 13% 11% 4% 7% 7% 4% 5% 4% Small Business 240 270 257 259 269 277 274 273 282 273 3% Y/Y Growth 7% 18% 14% 12% 12% 3% 7% 5% 5% 5% Public 982 1,285 1,487 1,184 1,017 1,389 1,484 1,294 1,069 1,102-3% Y/Y Growth 16% 19% 19% 20% 4% 8% 0% 9% 5% 10% Government 260 320 449 448 294 391 494 522 340 335 2% Y/Y Growth 3% 8% 20% 37% 13% 22% 10% 17% 16% 16% Education 324 530 639 346 345 549 583 341 341 368-7% Y/Y Growth 39% 26% 24% 22% 7% 4% -9% -1% -1% 7% Healthcare 399 436 399 391 378 449 407 431 389 400-3% Y/Y Growth 10% 19% 12% 3% -5% 3% 2% 10% 3% 7% Others 134 133 126 140 128 127 114 118 135 175-23% Y/Y Growth -17% -16% -18% -18% -5% -5% -9% -16% 5% 0% Balance Sheet / Return Metrics F1Q14 A F2Q14 A F3Q14 A F4Q14 A F1Q15 A F2Q15 A F3Q15 A F4Q15 A F1Q16 A F4Q15 E Q/Q Y/Y CFO 246 (70) 175 85 178 (79) 196 (17) 428 160 + + FCF 237 (82) 161 64 168 (92) 175 (64) 417 144 + + Inventory 388 450 424 338 357 436 411 393 460 351 Inventory Turns 5.8 6.2 6.3 6.7 6.6 7.0 6.9 7.1 6.1 7.0 Days Sales 48 42 42 45 50 43 46 52 55 57 Days Payable 28 26 26 26 28 25 29 30 32 31 Days Inventory 16 15 14 14 14 13 13 13 15 13 Cash Conversion 36 30 30 32 36 31 31 35 38 38 Source: Company data, Morgan Stanley Research 4

Exhibit 2: CDW Income Statement ($ in millions) 2014A 2015A 2016E Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 2014A 2015A 2016E 2017E 2018E Revenues 2,652 3,106 3,266 3,050 2,755 3,314 3,501 3,418 3,117 3,743 3,805 3,652 12,075 12,989 14,317 15,074 15,931 Corporate 1,536 1,688 1,654 1,727 1,610 1,799 1,765 1,795 1,692 1,897 1,876 1,923 6,604 6,968 7,388 7,754 8,154 Public 982 1,285 1,487 1,184 1,017 1,389 1,484 1,294 1,069 1,507 1,614 1,388 4,938 5,184 5,579 5,852 6,134 Other 134 133 126 140 128 127 253 330 355 339 315 340 532 837 1,349 1,468 1,643 Cost of Sales 2,227 2,609 2,759 2,558 2,299 2,780 2,934 2,861 2,592 3,133 3,185 3,056 10,153 10,873 11,967 12,602 13,302 0.52% Gross Profit 425 497 507 492 457 535 567 558 525 610 620 595 1,921 2,116 2,350 2,472 2,629 Gross Margin 16.0% 16.0% 15.5% 16.1% 16.6% 16.1% 16.2% 16.3% 16.8% 16.3% 16.3% 16.3% 15.9% 16.3% 16.4% 16.4% 16.5% Operating Expenses 289 309 323 328 305 329 363 378 364 412 377 383 1,248 1,374 1,535 1,591 1,673 Selling and administrative expenses 261 274 285 290 276 291 321 339 329 371 335 343 1,110 1,226 1,378 1,419 1,498 Advertising expense 29 35 37 38 29 38 41 39 34 41 42 40 138 148 157 172 175 Operating Income 136 188 184.7 164 152 206 204.6 180 161 198 244 212 673 742 815 881 956 PTOP Margin 5.1% 6.1% 5.7% 5.4% 5.5% 6.2% 5.8% 5.3% 5.2% 5.3% 6.4% 5.8% 5.6% 5.7% 5.7% 5.8% 6.0% Adjusted EBITDA 194 248 243 224 212 268 282 257 233 273 318 286 908 1,020 1,109 1,156 1,238 Adjusted EBITDA Margin 7.3% 8.0% 7.4% 7.4% 7.7% 8.1% 8.1% 7.5% 7.5% 7.3% 8.4% 7.8% 7.5% 7.8% 7.7% 7.7% 7.8% Total Interest & Other Income (55) (51) (95) (84) (65) (34) 42 (38) (37) (36) (36) (36) (285) (95) (146) (146) (130) Pretax Income 81 137 90 80 87 172 246 142 124 162 207 175 388 647 669 734 826 GAAP Income Tax Expense/(Benefit) 30 51 34 28 32 64 95 52 46 61 78 66 143 244 250 275 310 Operating Tax Expense (excl one time tax effe 47 67 67 59 58 80 81 76 62 76 93 81 240 295 314 338 372 Effective Tax Rate 37.0% 36.9% 37.9% 35.3% 37.1% 37.1% 38.7% 37.0% 37.2% 37.5% 37.5% 37.5% 36.8% 37.7% 37.4% 37.5% 37.5% Total Non-GAAP Adjustments (28) (27) (53) (47) (40) (26) 12 (27) (30) (25) (25) (25) (155) (81) (103) (98) (98) GAAP Net Income 51 87 56 52 55 108 151 89 78 101 130 110 245 403 418 459 516 Non-GAAP Net Income (for consensus) 81 116 111 102 98 139 143 124 113 131 159 139 410 503 543 576 629 Fully-diluted EPS EPS - ModelWare $0.30 $0.50 $0.32 $0.30 $0.32 $0.63 $0.88 $0.52 $0.46 $0.61 $0.78 $0.67 $1.42 $2.35 $2.53 $2.87 $3.29 EPS - Reported $0.30 $0.50 $0.32 $0.30 $0.32 $0.63 $0.88 $0.52 $0.46 $0.61 $0.78 $0.67 $1.42 $2.35 $2.53 $2.87 $3.29 EPS - For Consensus $0.47 $0.67 $0.64 $0.59 $0.56 $0.81 $0.84 $0.73 $0.67 $0.79 $0.97 $0.86 $2.37 $2.93 $3.28 $3.60 $4.01 Dividend Payment 7 7 7 12 12 12 11 18 18 19 18 18 34 53 73 103 146 Dividend Per Share $0.04 $0.04 $0.04 $0.07 $0.07 $0.07 $0.07 $0.11 $0.11 $0.11 $0.11 $0.11 $0.20 $0.31 $0.44 $0.65 $0.95 Period Ending Outstanding Shares 172.0 172.1 172.1 172.2 172.2 172.2 169.2 168.2 167.1 164.3 161.8 159.5 172.2 168.2 159.5 156.1 153.8 Avg Shares (Basic) 169.6 170.2 170.9 171.6 172.1 171.0 169.6 168.5 167.3 165.7 163.1 160.7 170.6 170.3 164.2 157.9 155.0 Avg Shares (Fully Diluted) 172.3 172.7 173.0 173.2 173.5 172.5 171.0 170.1 168.9 165.7 165.1 162.7 172.8 171.8 165.6 159.9 157.0 Source: Company data, Morgan Stanley Research 5

Exhibit 3: CDW Income Statement Analysis ($ in millions) 2014A 2015A 2016E Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 2014A 2015A 2016E 2017E 2018E Margin Analysis Gross Margin 16.0% 16.0% 15.5% 16.1% 16.6% 16.1% 16.2% 16.3% 16.8% 16.3% 16.3% 16.3% 15.9% 16.3% 16.4% 16.4% 16.5% Adjusted selling and administrative expense 7.7% 6.9% 7.0% 7.6% 8.0% 8.1% 7.0% 7.7% 8.3% 8.0% 6.9% 7.5% 7.3% 7.4% 7.6% 7.6% 7.7% Advertising expense 1.1% 1.1% 1.1% 1.2% 1.1% 1.1% 1.2% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% Adjusted Operating Expenses 8.8% 8.1% 8.2% 8.9% 9.1% 9.2% 8.2% 8.8% 9.4% 9.1% 8.0% 8.6% 8.4% 8.6% 8.7% 8.8% 8.8% PTOP Margin 5.1% 6.1% 5.7% 5.4% 5.5% 6.2% 5.8% 5.3% 5.2% 5.3% 6.4% 5.8% 5.6% 5.7% 5.7% 5.8% 6.0% Adjusted EBITDA Margin 7.3% 8.0% 7.4% 7.4% 7.7% 8.1% 8.1% 7.5% 7.5% 7.3% 8.4% 7.8% 7.5% 7.8% 7.7% 7.7% 7.8% Pretax Margin 3.0% 4.4% 2.7% 2.6% 3.2% 5.2% 7.0% 4.1% 4.0% 4.3% 5.4% 4.8% 3.2% 5.0% 4.7% 4.9% 5.2% Non-GAAP Net Income 3.1% 3.7% 3.4% 3.4% 3.5% 4.2% 4.1% 3.6% 3.6% 3.5% 4.2% 3.8% 3.4% 3.9% 3.8% 3.8% 3.9% Year-Over-Year Growth (%) Revenue 10.0% 11.8% 14.0% 12.4% 3.9% 6.7% 7.2% 12.1% 13.1% 13.0% 8.7% 6.8% 12.1% 7.6% 10.2% 5.3% 5.7% Corporate 9.4% 9.8% 12.8% 11.2% 4.8% 6.6% 6.7% 3.9% 5.1% 5.5% 6.3% 7.2% 10.8% 5.5% 6.0% 4.9% 5.2% Public 16.0% 18.7% 19.5% 19.5% 3.6% 8.0% -0.2% 9.3% 5.1% 8.6% 8.8% 7.3% 18.6% 5.0% 7.6% 4.9% 4.8% Other -16.7% -16.4% -18.5% -17.8% -4.8% -4.7% 101.2% 136.4% 178.2% 167.2% 24.7% 3.2% -17.4% 57.2% 61.2% 8.8% 11.9% Gross Profit 5.8% 10.0% 10.7% 9.7% 7.4% 7.6% 11.8% 13.4% 14.9% 14.2% 9.3% 6.7% 9.1% 10.1% 11.1% 5.2% 6.3% Adjusted selling and administrative expense 5.5% 3.1% 9.3% 8.9% 7.7% 24.1% 7.6% 12.8% 17.8% 11.9% 7.0% 3.6% 6.7% 9.2% 13.7% 5.0% 6.1% Advertising expense -6.3% 10.1% 12.4% 5.0% 3.2% 9.2% 10.8% 4.5% 16.3% 8.4% 1.6% 2.5% 5.5% 7.1% 6.5% 9.2% 2.0% Adjusted Operating Expenses 3.9% 4.1% 9.7% 8.3% 7.2% 22.1% 8.0% 11.7% 17.6% 11.5% 6.2% 3.4% 6.6% 8.9% 12.7% 5.5% 5.6% Operating Income 13.1% 22.5% 98.8% 15.7% 11.6% 9.4% 10.8% 9.5% 6.2% -3.6% 19.0% 17.7% 32.3% 10.3% 9.8% 8.1% 8.5% Adjusted EBITDA Margin 8.5% 16.6% 12.4% 11.7% 9.6% 8.1% 16.3% 14.7% 9.6% 1.7% 12.7% 11.2% 12.4% 12.2% 8.8% 4.2% 7.2% Pretax Income 81.6% 87.4% -1964.6% -3.0% 7.7% 25.4% 175.1% 76.9% 42.4% -5.8% -15.8% 23.8% 98.3% 66.9% 3.3% 9.9% 12.4% Non-GAAP Net Income 44.0% 46.3% 29.9% 9.2% 20.3% 19.9% 29.4% 21.0% 15.5% -5.7% 11.2% 12.7% 30.4% 22.8% 7.8% 6.2% 9.2% Non-GAAP EPS 40.9% 45.7% 29.1% 8.5% 19.5% 20.1% 30.9% 23.2% 18.6% -1.8% 15.2% 17.9% 19.8% 23.5% 11.8% 10.0% 11.2% Sequential Growth (%) Revenue -2.2% 17.1% 5.2% -6.6% -9.7% 20.3% 5.6% -2.4% -8.8% 20.1% 1.6% -4.0% Corporate -1.1% 9.9% -2.0% 4.4% -6.7% 11.7% -1.9% 1.7% -5.7% 12.1% -1.1% 2.5% Public -0.9% 30.9% 15.7% -20.4% -14.1% 36.5% 6.9% -12.8% -17.4% 41.0% 7.1% -14.0% Other -21.0% -0.7% -5.7% 11.2% -8.5% -0.5% 99.0% 30.6% 7.6% -4.5% -7.2% 8.1% Gross Profit -5.2% 16.9% 2.1% -3.0% -7.2% 17.1% 6.1% -1.7% -5.9% 16.3% 1.6% -4.0% Adjusted selling and administrative expense -4.2% 5.3% 6.3% 1.6% -5.2% 21.3% -7.9% 6.6% -1.1% 15.2% -11.9% 3.2% Advertising expense -20.2% 22.1% 6.9% 0.8% -21.6% 29.3% 8.4% -4.9% -12.8% 20.4% 1.6% -4.0% Adjusted Operating Expenses -6.5% 7.3% 6.4% 1.5% -7.5% 22.3% -5.9% 5.0% -2.6% 15.8% -10.3% 2.2% Operating Income -4.4% 38.6% -1.9% -11.0% -7.7% 35.8% -0.6% -12.1% -10.5% 23.2% 22.7% -13.0% Adjusted EBITDA Margin -3.5% 28.0% -2.1% -7.6% -5.3% 26.2% 5.3% -8.8% -9.5% 17.2% 16.6% -10.0% Pretax Income -2.2% 69.8% -34.8% -10.5% 8.6% 97.8% 43.1% -42.4% -12.6% 30.8% 27.9% -15.4% Non-GAAP Net Income -13.4% 42.9% -4.5% -7.7% -4.5% 42.4% 3.0% -13.6% -8.9% 16.3% 21.5% -12.5% Non-GAAP EPS -13.5% 42.6% -4.7% -7.8% -4.7% 43.2% 3.9% -13.2% -8.2% 18.6% 22.0% -11.2% Revenue Mix 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Corporate 58% 54% 51% 57% 58% 54% 50% 52% 54% 51% 49% 53% 55% 54% 52% 51% 51% Public 37% 41% 46% 39% 37% 42% 42% 38% 34% 40% 42% 38% 41% 40% 39% 39% 39% Other 5% 4% 4% 5% 5% 4% 7% 10% 11% 9% 8% 9% 4% 6% 9% 10% 10% Source: Company data, Morgan Stanley Research 6

Exhibit 4: CDW Balance Sheet ($ in millions) 2014A 2015A 2016E Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 2014A 2015A 2016E 2017E 2018E Assets Current Assets: Cash and cash equivalents 307 228 358 345 447 336 98 38 248 111 (27) (62) 345 38 (62) 165 458 Marketable securities - - - - - - - - - - - - - - - - - Accounts receivable, net 1,335 1,526 1,473 1,561 1,449 1,713 1,860 2,017 1,780 2,004 1,926 2,087 1,561 2,017 2,087 2,202 1,912 Merchandise inventory 388 450 424 338 357 436 411 393 460 366 544 329 338 393 329 446 650 Miscellaneous receivables 165 160 175 156 174 189 231 198 213 270 274 257 156 198 257 228 239 Deferred income taxes - - - - - - - - - - - - - - - - - Prepaid expenses and other 53 52 86 55 59 41 135 144 115 90 91 88 55 144 88 93 96 Total Current Assets 2,248 2,415 2,516 2,453 2,486 2,714 2,735 2,791 2,816 2,841 2,809 2,698 2,453 2,791 2,698 3,133 3,356 Marketable securities - - - - - - - - - - - - - - - - - Property, Plant & Equipment, net 130 130 132 137 135 134 154 175 168 414 413 410 137 175 410 431 548 Equity investments - - - 87 87 95 - - - - - - 87 - - - - Goodwill 2,219 2,220 2,219 2,218 2,215 2,216 2,517 2,500 2,495 2,517 2,517 2,517 2,218 2,500 2,517 2,517 2,517 Other intangible assets, net 1,287 1,247 1,207 1,169 1,129 1,089 1,325 1,276 1,225 911 869 826 1,169 1,276 826 664 503 Deferred financing costs, net 28 32 32 33 34 - - - - - - - 33 - - - - Other assets 2 2 2 3 3 2 9 12 13 13 13 13 3 12 13 13 13 Total Fixed Assets 3,665 3,630 3,591 3,647 3,603 3,537 4,007 3,965 3,902 3,855 3,811 3,766 3,647 3,965 3,766 3,625 3,580 Total Assets 5,913 6,045 6,107 6,100 6,089 6,251 6,742 6,755 6,718 6,696 6,620 6,464 6,100 6,755 6,464 6,758 6,936 Liabilities Current Liabilities: Accounts payable-trade 684 810 778 704 695 854 1,013 867 959 1,038 1,062 920 704 867 920 993 834 Accounts payable-inventory financing 250 312 300 332 290 373 355 440 373 522 388 351 332 440 351 411 503 Current maturities of long-term debt 15 15 15 15 15 15 28 27 27 27 27 27 15 27 27 27 27 Deferred revenue 94 78 102 81 82 57 126 152 160 64 76 131 81 152 131 77 80 Accrued expenses 376 314 332 335 343 327 351 402 425 299 304 292 335 402 292 303 287 Other - - - - - - - - - - - - - - - - - Total Current Liabilities 1,419 1,529 1,528 1,468 1,426 1,626 1,872 1,887 1,943 1,951 1,857 1,722 1,468 1,887 1,722 1,811 1,730 Non-Current Liabilities Debt 3,157 3,111 3,146 3,175 3,191 3,154 3,240 3,233 3,225 3,225 3,225 3,225 3,175 3,233 3,225 3,225 3,225 Deferred income taxes 541 518 495 475 450 428 496 470 449 449 457 438 475 470 438 403 350 Accrued interest - - - - - - - - - - - - - - - - - Other liabilities 41 43 44 46 47 47 58 70 61 60 61 58 46 70 58 62 80 Total Non-Current Liabilities 3,739 3,671 3,686 3,695 3,688 3,630 3,794 3,772 3,735 3,734 3,742 3,722 3,695 3,772 3,722 3,689 3,655 Total Liabilities 5,158 5,201 5,213 5,163 5,113 5,255 5,666 5,659 5,678 5,685 5,599 5,443 5,163 5,659 5,443 5,501 5,386 Total Shareholder's Equity 755 845 894 937 976 996 1,076 1,096 1,040 1,011 1,021 1,021 937 1,096 1,021 1,257 1,550 Total Liabilities and Shareholder's Equity 5,913 6,045 6,107 6,100 6,089 6,251 6,742 6,755 6,718 6,696 6,620 6,464 6,100 6,755 6,464 6,758 6,936 Source: Company data, Morgan Stanley Research Exhibit 5: CDW Cash Flow Statement Source: Company data, Morgan Stanley Research 7

Exhibit 6: ($ in millions) 2014A 2015A 2016E Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 2014A 2015A 2016E 2017E 2018E Cash Flow Statement (Non Cumulative) Operating activities: Net Income / (Loss) 51 87 56 52 55 108 151 89 78 101 130 110 245 403 418 459 516 Adjustments to reconcile net income: Depreciation & Amortization 52 52 52 52 53 53 60 62 64 64 64 64 208 227 256 237 251 Equity-based compensation expense 3 4 4 5 5 8 8 11 8 8 8 8 16 31 34 30 24 Deferred income taxes (22) (22) (23) (22) (23) (23) 13 (23) (21) 1 7 (18) (89) (55) (31) (36) (52) Amortization of deferred financing costs 2 2 2 2 2 (1) 4 2 - - - - 6 6 - - - Net loss (gain) on extinguishments of lo 5 3 46 37 24 - - - - - - - 91 24 - - - Realized loss on interest rate swap agre - - - - 1 (9) 10 (2) - - - - - - - - - Tax benefit from stock option and restric - - - - - - - - - - - - - - - - - Other - 0 0 (1) (4) 9 (91) 1 (1) - - - (0) (85) (1) - - Changes in Operating Assets and Liabilities: Accounts receivable 113 (189) 50 (91) 105 (263) (21) (164) 237 (224) 78 (160) (118) (343) (69) (115) 290 Merchandise inventory (7) (61) 26 86 (20) (79) 44 23 (67) 94 (178) 215 44 (32) 64 (117) (205) Other assets (26) 6 (50) 51 (23) 3 (82) 31 15 (32) (6) 21 (19) (71) (2) 24 (14) Accounts payable-trade 22 125 (31) (71) (7) 159 74 (126) 92 80 23 (141) 44 101 54 73 (159) Other current liabilities 52 (78) 43 (16) 9 (43) 18 65 31 (222) 17 43 2 48 (130) (43) (14) Long-term liabilities 1 1 2 2 1 1 7 13 (9) (1) 1 (2) 5 21 (12) 4 18 Net Cash Provided by Operating Activities 246 (70) 175 85 178 (79) 196 (17) 428 (130) 145 138 435 278 580 516 654 Investing activities: Capital expenditures (9) (12) (13) (21) (10) (13) (21) (46) (11) (17) (20) (19) (55) (90) (67) (96) (206) Purchases and redemptions of available-fo - - - - - - - - - - - - - - - - - Purchases and redemptions of held-to-mat - - - - - - - - - - - - - - - - - Acquisition of business, net of cash acquire - - (1) (86) - - (264) - - - - - (87) (264) - - - Cash and Premium payments on interest r - - - (2) (1) - - - - - - - (2) (1) - - - Proceeds from sale of assets and other - - - - - - - - - - - - - - - - - Other (21) - - - - - - - - - - - (21) - - - - Net cash used in investing activities (30) (12) (14) (109) (11) (13) (285) (46) (11) (17) (20) (19) (165) (354) (67) (96) (206) Financing activities: Proceeds from borrowings under revolving credit facility - - - - - - 105 210 - - - - - 315 - - - Repayments of borrowings under revolving credit -facility - - - - - (105) (210) - - - - - (315) - - - Repayments of long-term debt (4) (4) (4) (4) (4) (4) (18) (7) (4) - - - (15) (33) (4) - - Proceeds from issuance of long-term debt - - 600 575 525 - - - - - - - 1,175 525 - - - Payments to extinguish long-term debt (80) (44) (600) (575) (525) - - - - - - - (1,299) (525) - - - Payments of debt financing costs - - (14) (8) (7) 7 (7) - - - - - (22) (7) - - - Investment from CDW Holdings LLC, net - - - - - - - - - - - - - - - - - Net change in accounts payable-inventory financing(6) 61 (12) 32 (42) 84 (19) 73 (67) 149 (135) (36) 76 96 (88) 60 92 Purchase of treasury shares and class B shares - - - - 2 (93) (102) (48) (118) (120) (110) (100) - (241) (448) (150) (100) Proceeds from issuance of common stock under share-based - -compensation 5 plans 2 1 4 4 3 - - - - 7 11 - - - Dividends paid (7) (7) (7) (12) (12) (12) (11) (18) (18) (19) (18) (18) (34) (53) (73) (103) (146) Other 0 (4) 4 0 0 (6) 6 0 - - - - 0 1 - - - Net Cash used in Financing Activities (97) 2 (29) 12 (63) (20) (147) 3 (206) 11 (263) (154) (112) (227) (613) (193) (154) Effect of exchange rate changes on cash and cash (1) equivalents 1 (1) (1) (2) 0 (2) 0 0 - - - (2) (4) 0 - - Increase/(decrease) in Cash and Cash Equivalents 119 (79) 130 (13) 103 (112) (238) (60) 211 (137) (138) (35) 156 (307) (100) 227 294 Cash and Cash Equivalents at Beginning of Period 188 307 228 358 345 447 336 97 38 248 111 (27) 188 345 38 (62) 165 Cash and Cash Equivalents at End of Period 307 228 358 345 447 336 97 38 248 111 (27) (62) 345 38 (62) 165 458 Sou rce: 8

Disclosure Section The information and opinions in Morgan Stanley Research were prepared by Morgan Stanley & Co. LLC, and/or Morgan Stanley C.T.V.M. S.A., and/or Morgan Stanley Mexico, Casa de Bolsa, S.A. de C.V., and/or Morgan Stanley Canada Limited. As used in this disclosure section, "Morgan Stanley" includes Morgan Stanley & Co. LLC, Morgan Stanley C.T.V.M. S.A., Morgan Stanley Mexico, Casa de Bolsa, S.A. de C.V., Morgan Stanley Canada Limited and their affiliates as necessary. For important disclosures, stock price charts and equity rating histories regarding companies that are the subject of this report, please see the Morgan Stanley Research Disclosure Website at www.morganstanley.com/researchdisclosures, or contact your investment representative or Morgan Stanley Research at 1585 Broadway, (Attention: Research Management), New York, NY, 10036 USA. For valuation methodology and risks associated with any recommendation, rating or price target referenced in this research report, please contact the Client Support Team as follows: US/Canada +1 800 303-2495; Hong Kong +852 2848-5999; Latin America +1 718 754-5444 (U.S.); London +44 (0)20-7425-8169; Singapore +65 6834-6860; Sydney +61 (0)2-9770-1505; Tokyo +81 (0)3-6836-9000. Alternatively you may contact your investment representative or Morgan Stanley Research at 1585 Broadway, (Attention: Research Management), New York, NY 10036 USA. Analyst Certification The following analysts hereby certify that their views about the companies and their securities discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report: Katy L. Huberty, CFA. Unless otherwise stated, the individuals listed on the cover page of this report are research analysts. Global Research Conflict Management Policy Morgan Stanley Research has been published in accordance with our conflict management policy, which is available at www.morganstanley.com/institutional/research/conflictpolicies. Important US Regulatory Disclosures on Subject Companies As of April 29, 2016, Morgan Stanley beneficially owned 1% or more of a class of common equity securities of the following companies covered in Morgan Stanley Research: Apple, Inc., Electronics for Imaging Inc, EMC Corp., Fitbit Inc, Lexmark International, NCR Corp., Pure Storage Inc. Within the last 12 months, Morgan Stanley managed or co-managed a public offering (or 144A offering) of securities of Fitbit Inc, HP Inc., Pure Storage Inc. Within the last 12 months, Morgan Stanley has received compensation for investment banking services from EMC Corp., Fitbit Inc, Hewlett Packard Enterprise, HP Inc., NetApp Inc, Pure Storage Inc. In the next 3 months, Morgan Stanley expects to receive or intends to seek compensation for investment banking services from Apple, Inc., CDW Corporation, Electronics for Imaging Inc, EMC Corp., Fitbit Inc, Hewlett Packard Enterprise, HP Inc., IBM, Lexmark International, NetApp Inc, Nimble Storage, Pure Storage Inc, QLogic Corporation, Seagate Technology, Teradata. Within the last 12 months, Morgan Stanley has received compensation for products and services other than investment banking services from CDW Corporation, Electronics for Imaging Inc, EMC Corp., Fitbit Inc, Hewlett Packard Enterprise, HP Inc., IBM, NCR Corp., NetApp Inc, Seagate Technology. Within the last 12 months, Morgan Stanley has provided or is providing investment banking services to, or has an investment banking client relationship with, the following company: Apple, Inc., CDW Corporation, Electronics for Imaging Inc, EMC Corp., Fitbit Inc, Hewlett Packard Enterprise, HP Inc., IBM, Lexmark International, NetApp Inc, Nimble Storage, Pure Storage Inc, QLogic Corporation, Seagate Technology, Teradata. Within the last 12 months, Morgan Stanley has either provided or is providing non-investment banking, securities-related services to and/or in the past has entered into an agreement to provide services or has a client relationship with the following company: Apple, Inc., CDW Corporation, Electronics for Imaging Inc, EMC Corp., Fitbit Inc, Hewlett Packard Enterprise, HP Inc., IBM, NCR Corp., NetApp Inc, QLogic Corporation, Seagate Technology. An employee, director or consultant of Morgan Stanley is a director of EMC Corp., Hewlett Packard Enterprise, IBM. This person is not a research analyst or a member of a research analyst's household. Morgan Stanley & Co. LLC makes a market in the securities of Apple, Inc., CDW Corporation, Electronics for Imaging Inc, EMC Corp., Fitbit Inc, Hewlett Packard Enterprise, HP Inc., IBM, Lexmark International, NCR Corp., NetApp Inc, Nimble Storage, Pure Storage Inc, QLogic Corporation, Seagate Technology, Teradata, Western Digital. The equity research analysts or strategists principally responsible for the preparation of Morgan Stanley Research have received compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors, firm revenues and overall investment banking revenues. Morgan Stanley and its affiliates do business that relates to companies/instruments covered in Morgan Stanley Research, including market making, providing liquidity, fund management, commercial banking, extension of credit, investment services and investment banking. Morgan Stanley sells to and buys from customers the securities/instruments of companies covered in Morgan Stanley Research on a principal basis. Morgan Stanley may have a position in the debt of the Company or instruments discussed in this report. Morgan Stanley trades or may trade as principal in the debt securities (or in related derivatives) that are the subject of the debt research report. Certain disclosures listed above are also for compliance with applicable regulations in non-us jurisdictions. STOCK RATINGS Morgan Stanley uses a relative rating system using terms such as Overweight, Equal-weight, Not-Rated or Underweight (see definitions below). Morgan Stanley does not assign ratings of Buy, Hold or Sell to the stocks we cover. Overweight, Equal-weight, Not-Rated and Underweight are not the equivalent of buy, hold and sell. Investors should carefully read the definitions of all ratings used in Morgan Stanley Research. In addition, since Morgan Stanley Research contains more complete information concerning the analyst's views, investors should carefully read Morgan Stanley Research, in its entirety, and not infer the contents from the rating alone. In any case, ratings (or research) should not be used or relied upon as investment advice. An investor's decision to buy or sell a stock should depend on individual circumstances (such as the investor's existing holdings) and other considerations. Global Stock Ratings Distribution (as of April 30, 2016) The Stock Ratings described below apply to Morgan Stanley's Fundamental Equity Research and do not apply to Debt Research produced by the Firm. For disclosure purposes only (in accordance with NASD and NYSE requirements), we include the category headings of Buy, Hold, and Sell alongside our ratings of Overweight, Equal-weight, Not-Rated and Underweight. Morgan Stanley does not assign ratings of Buy, Hold or Sell to the stocks we cover. Overweight, Equal-weight, Not-Rated and Underweight are not the equivalent of buy, hold, and sell but represent recommended relative weightings (see definitions below). To satisfy regulatory requirements, we correspond Overweight, our most positive stock rating, with a buy recommendation; we correspond Equal-weight and Not-Rated to hold and Underweight to sell recommendations, respectively. 9

COVERAGE UNIVERSE INVESTMENT BANKING CLIENTS (IBC) STOCK RATING CATEGORY COUNT % OF TOTAL COUNT % OF TOTAL IBC % OF RATING CATEGORY Overweight/Buy 1202 36% 302 42% 25% Equal-weight/Hold 1411 42% 326 45% 23% Not-Rated/Hold 78 2% 7 1% 9% Underweight/Sell 682 20% 91 13% 13% TOTAL 3,373 726 Data include common stock and ADRs currently assigned ratings. Investment Banking Clients are companies from whom Morgan Stanley received investment banking compensation in the last 12 months. Analyst Stock Ratings Overweight (O). The stock's total return is expected to exceed the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months. Equal-weight (E). The stock's total return is expected to be in line with the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months. Not-Rated (NR). Currently the analyst does not have adequate conviction about the stock's total return relative to the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months. Underweight (U). The stock's total return is expected to be below the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months. Unless otherwise specified, the time frame for price targets included in Morgan Stanley Research is 12 to 18 months. Analyst Industry Views Attractive (A): The analyst expects the performance of his or her industry coverage universe over the next 12-18 months to be attractive vs. the relevant broad market benchmark, as indicated below. In-Line (I): The analyst expects the performance of his or her industry coverage universe over the next 12-18 months to be in line with the relevant broad market benchmark, as indicated below. Cautious (C): The analyst views the performance of his or her industry coverage universe over the next 12-18 months with caution vs. the relevant broad market benchmark, as indicated below. Benchmarks for each region are as follows: North America - S&P 500; Latin America - relevant MSCI country index or MSCI Latin America Index; Europe - MSCI Europe; Japan - TOPIX; Asia - relevant MSCI country index or MSCI sub-regional index or MSCI AC Asia Pacific ex Japan Index. Stock Price, Price Target and Rating History (See Rating Definitions) Important Disclosures for Morgan Stanley Smith Barney LLC Customers 10

Important disclosures regarding the relationship between the companies that are the subject of Morgan Stanley Research and Morgan Stanley Smith Barney LLC or Morgan Stanley or any of their affiliates, are available on the Morgan Stanley Wealth Management disclosure website at www.morganstanley.com/online/researchdisclosures. For Morgan Stanley specific disclosures, you may refer to www.morganstanley.com/researchdisclosures. Each Morgan Stanley Equity Research report is reviewed and approved on behalf of Morgan Stanley Smith Barney LLC. This review and approval is conducted by the same person who reviews the Equity Research report on behalf of Morgan Stanley. This could create a conflict of interest. Other Important Disclosures Morgan Stanley & Co. International PLC and its affiliates have a significant financial interest in the debt securities of Apple, Inc., EMC Corp., Fitbit Inc, Hewlett Packard Enterprise, HP Inc., IBM, Lexmark International, NCR Corp., NetApp Inc, Western Digital. Morgan Stanley is not acting as a municipal advisor and the opinions or views contained herein are not intended to be, and do not constitute, advice within the meaning of Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Morgan Stanley produces an equity research product called a "Tactical Idea." Views contained in a "Tactical Idea" on a particular stock may be contrary to the recommendations or views expressed in research on the same stock. This may be the result of differing time horizons, methodologies, market events, or other factors. For all research available on a particular stock, please contact your sales representative or go to Matrix at http://www.morganstanley.com/matrix. Morgan Stanley Research is provided to our clients through our proprietary research portal on Matrix and also distributed electronically by Morgan Stanley to clients. Certain, but not all, Morgan Stanley Research products are also made available to clients through third-party vendors or redistributed to clients through alternate electronic means as a convenience. For access to all available Morgan Stanley Research, please contact your sales representative or go to Matrix at http://www.morganstanley.com/matrix. Any access and/or use of Morgan Stanley Research is subject to Morgan Stanley's Terms of Use (http://www.morganstanley.com/terms.html). By accessing and/or using Morgan Stanley Research, you are indicating that you have read and agree to be bound by our Terms of Use (http://www.morganstanley.com/terms.html). In addition you consent to Morgan Stanley processing your personal data and using cookies in accordance with our Privacy Policy and our Global Cookies Policy (http://www.morganstanley.com/privacy_pledge.html), including for the purposes of setting your preferences and to collect readership data so that we can deliver better and more personalized service and products to you. To find out more information about how Morgan Stanley processes personal data, how we use cookies and how to reject cookies see our Privacy Policy and our Global Cookies Policy (http://www.morganstanley.com/privacy_pledge.html). If you do not agree to our Terms of Use and/or if you do not wish to provide your consent to Morgan Stanley processing your personal data or using cookies please do not access our research. Morgan Stanley Research does not provide individually tailored investment advice. Morgan Stanley Research has been prepared without regard to the circumstances and objectives of those who receive it. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial adviser. The appropriateness of an investment or strategy will depend on an investor's circumstances and objectives. The securities, instruments, or strategies discussed in Morgan Stanley Research may not be suitable for all investors, and certain investors may not be eligible to purchase or participate in some or all of them. Morgan Stanley Research is not an offer to buy or sell or the solicitation of an offer to buy or sell any security/instrument or to participate in any particular trading strategy. The value of and income from your investments may vary because of changes in interest rates, foreign exchange rates, default rates, prepayment rates, securities/instruments prices, market indexes, operational or financial conditions of companies or other factors. There may be time limitations on the exercise of options or other rights in securities/instruments transactions. Past performance is not necessarily a guide to future performance. Estimates of future performance are based on assumptions that may not be realized. If provided, and unless otherwise stated, the closing price on the cover page is that of the primary exchange for the subject company's securities/instruments. The fixed income research analysts, strategists or economists principally responsible for the preparation of Morgan Stanley Research have received compensation based upon various factors, including quality, accuracy and value of research, firm profitability or revenues (which include fixed income trading and capital markets profitability or revenues), client feedback and competitive factors. Fixed Income Research analysts', strategists' or economists' compensation is not linked to investment banking or capital markets transactions performed by Morgan Stanley or the profitability or revenues of particular trading desks. The "Important US Regulatory Disclosures on Subject Companies" section in Morgan Stanley Research lists all companies mentioned where Morgan Stanley owns 1% or more of a class of common equity securities of the companies. For all other companies mentioned in Morgan Stanley Research, Morgan Stanley may have an investment of less than 1% in securities/instruments or derivatives of securities/instruments of companies and may trade them in ways different from those discussed in Morgan Stanley Research. Employees of Morgan Stanley not involved in the preparation of Morgan Stanley Research may have investments in securities/instruments or derivatives of securities/instruments of companies mentioned and may trade them in ways different from those discussed in Morgan Stanley Research. Derivatives may be issued by Morgan Stanley or associated persons. With the exception of information regarding Morgan Stanley, Morgan Stanley Research is based on public information. Morgan Stanley makes every effort to use reliable, comprehensive information, but we make no representation that it is accurate or complete. We have no obligation to tell you when opinions or information in Morgan Stanley Research change apart from when we intend to discontinue equity research coverage of a subject company. Facts and views presented in Morgan Stanley Research have not been reviewed by, and may not reflect information known to, professionals in other Morgan Stanley business areas, including investment banking personnel. Morgan Stanley Research personnel may participate in company events such as site visits and are generally prohibited from accepting payment by the company of associated expenses unless pre-approved by authorized members of Research management. Morgan Stanley may make investment decisions that are inconsistent with the recommendations or views in this report. To our readers in Taiwan: Information on securities/instruments that trade in Taiwan is distributed by Morgan Stanley Taiwan Limited ("MSTL"). Such information is for your reference only. The reader should independently evaluate the investment risks and is solely responsible for their investment decisions. Morgan Stanley Research may not be distributed to the public media or quoted or used by the public media without the express written consent of Morgan Stanley. Information on securities/instruments that do not trade in Taiwan is for informational purposes only and is not to be construed as a recommendation or a solicitation to trade in such securities/instruments. MSTL may not execute transactions for clients in these securities/instruments. To our readers in Hong Kong: Information is distributed in Hong Kong by and on behalf of, and is attributable to, Morgan Stanley Asia Limited as part of its regulated activities in Hong Kong. If you have any queries concerning Morgan Stanley Research, please contact our Hong Kong sales representatives. Morgan Stanley is not incorporated under PRC law and the research in relation to this report is conducted outside the PRC. Morgan Stanley Research does not constitute an offer to sell or the solicitation of an offer to buy any securities in the PRC. PRC investors shall have the relevant qualifications to invest in such securities and shall be responsible for obtaining all relevant approvals, licenses, verifications and/or registrations from the relevant governmental authorities themselves. Neither this report nor any part of it is intended as, or shall constitute, provision of any consultancy or advisory service of securities investment as defined under PRC law. Such information is provided for your reference only. Morgan Stanley Research is disseminated in Brazil by Morgan Stanley C.T.V.M. S.A.; in Mexico by Morgan Stanley México, Casa de Bolsa, S.A. de C.V which is regulated by Comision Nacional Bancaria y de Valores. Paseo de los Tamarindos 90, Torre 1, Col. Bosques de las Lomas Floor 29, 05120 Mexico City; in Japan by Morgan Stanley MUFG Securities Co., Ltd. and, for Commodities related research reports only, Morgan Stanley Capital Group Japan Co., Ltd; in Hong Kong by Morgan Stanley Asia Limited (which accepts responsibility for its contents) and by Bank Morgan Stanley AG, Hong Kong Branch; in Singapore by Morgan Stanley Asia (Singapore) Pte. (Registration number 199206298Z) and/or Morgan Stanley Asia (Singapore) Securities Pte Ltd (Registration number 200008434H), regulated by the Monetary Authority of Singapore (which accepts legal responsibility for its contents and should be contacted with respect to any matters arising from, or in connection with, Morgan Stanley Research) and by Bank Morgan Stanley AG, Singapore Branch (Registration number T11FC0207F); in Australia to "wholesale clients" within the meaning of the Australian Corporations Act by Morgan Stanley Australia Limited A.B.N. 67 003 734 576, holder of Australian financial services license No. 233742, which accepts responsibility for its contents; in Australia to 11

"wholesale clients" and "retail clients" within the meaning of the Australian Corporations Act by Morgan Stanley Wealth Management Australia Pty Ltd (A.B.N. 19 009 145 555, holder of Australian financial services license No. 240813, which accepts responsibility for its contents; in Korea by Morgan Stanley & Co International plc, Seoul Branch; in India by Morgan Stanley India Company Private Limited; in Indonesia by PT Morgan Stanley Asia Indonesia; in Canada by Morgan Stanley Canada Limited, which has approved of and takes responsibility for its contents in Canada; in Germany by Morgan Stanley Bank AG, Frankfurt am Main and Morgan Stanley Private Wealth Management Limited, Niederlassung Deutschland, regulated by Bundesanstalt fuer Finanzdienstleistungsaufsicht (BaFin); in Spain by Morgan Stanley, S.V., S.A., a Morgan Stanley group company, which is supervised by the Spanish Securities Markets Commission (CNMV) and states that Morgan Stanley Research has been written and distributed in accordance with the rules of conduct applicable to financial research as established under Spanish regulations; in the US by Morgan Stanley & Co. LLC, which accepts responsibility for its contents. Morgan Stanley & Co. International plc, authorized by the Prudential Regulatory Authority and regulated by the Financial Conduct Authority and the Prudential Regulatory Authority, disseminates in the UK research that it has prepared, and approves solely for the purposes of section 21 of the Financial Services and Markets Act 2000, research which has been prepared by any of its affiliates. RMB Morgan Stanley (Proprietary) Limited is a member of the JSE Limited and regulated by the Financial Services Board in South Africa. RMB Morgan Stanley (Proprietary) Limited is a joint venture owned equally by Morgan Stanley International Holdings Inc. and RMB Investment Advisory (Proprietary) Limited, which is wholly owned by FirstRand Limited. The information in Morgan Stanley Research is being disseminated by Morgan Stanley Saudi Arabia, regulated by the Capital Market Authority in the Kingdom of Saudi Arabia, and is directed at Sophisticated investors only. The information in Morgan Stanley Research is being communicated by Morgan Stanley & Co. International plc (DIFC Branch), regulated by the Dubai Financial Services Authority (the DFSA), and is directed at Professional Clients only, as defined by the DFSA. The financial products or financial services to which this research relates will only be made available to a customer who we are satisfied meets the regulatory criteria to be a Professional Client. The information in Morgan Stanley Research is being communicated by Morgan Stanley & Co. International plc (QFC Branch), regulated by the Qatar Financial Centre Regulatory Authority (the QFCRA), and is directed at business customers and market counterparties only and is not intended for Retail Customers as defined by the QFCRA. As required by the Capital Markets Board of Turkey, investment information, comments and recommendations stated here, are not within the scope of investment advisory activity. Investment advisory service is provided exclusively to persons based on their risk and income preferences by the authorized firms. Comments and recommendations stated here are general in nature. These opinions may not fit to your financial status, risk and return preferences. For this reason, to make an investment decision by relying solely to this information stated here may not bring about outcomes that fit your expectations. The trademarks and service marks contained in Morgan Stanley Research are the property of their respective owners. Third-party data providers make no warranties or representations relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages relating to such data. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and S&P. Morgan Stanley Research, or any portion thereof may not be reprinted, sold or redistributed without the written consent of Morgan Stanley. INDUSTRY COVERAGE: IT Hardware COMPANY (TICKER) RATING (AS OF) PRICE* (05/04/2016) Katy L. Huberty, CFA Apple, Inc. (AAPL.O) O (05/26/2009) $94.19 CDW Corporation (CDW.O) E (08/06/2013) $40.66 Electronics for Imaging Inc (EFII.O) E (07/21/2015) $38.69 EMC Corp. (EMC.N) ++ $26.19 Fitbit Inc (FIT.N) O (09/08/2015) $17.10 Hewlett Packard Enterprise (HPE.N) E (11/11/2015) $15.93 HP Inc. (HPQ.N) O (03/18/2013) $11.59 IBM (IBM.N) O (02/18/2016) $144.25 Lexmark International (LXK.N) E (04/22/2016) $38.56 NCR Corp. (NCR.N) E (09/25/2011) $28.03 NetApp Inc (NTAP.O) U (03/24/2014) $22.90 Nimble Storage (NMBL.N) O (06/18/2014) $6.76 Pure Storage Inc (PSTG.N) O (11/01/2015) $14.19 QLogic Corporation (QLGC.O) E (07/22/2015) $12.31 Seagate Technology (STX.O) U (07/22/2015) $20.15 Teradata (TDC.N) U (12/03/2013) $24.40 Western Digital (WDC.O) E (07/22/2015) $39.60 Stock Ratings are subject to change. Please see latest research for each company. * Historical prices are not split adjusted. 2016 Morgan Stanley 12