CORPORATION

PRESENTATION BY
GOKULA KANNAN 11PBA110 JOSEPH STALIN 11PBA111 RISHAB JAIN 11PBA112

" MASTER OF BUSINESS "

If you can't make it good, at least make it look good. - Bill Gates

ABOUT BILL GATES

Bill Gates hail from a family of entrepreneurs and high-spirited liveliness. William Henry Bill Gates III was born in Seattle, Washington on October 28th, 1955. He had an early interest in software and began programming computers at the age of thirteen. In 1973, Bill Gates became a student at Harvard University, where he meet Steve Ballmer (now Microsoft's chief executive officer). He is an American business magnate, investor, philanthropist, author, and former CEO and current chairman of Microsoft.

 On November 10, 1983, at the Plaza Hotel in New York City, Microsoft Corporation formally announced Microsoft Windows, a next-generation operating system. In 1975, before graduation Gates left Harvard to form Microsoft with his childhood friend Paul Allen. He is consistently ranked among the world's wealthiest people and was the wealthiest overall from 1995 to 2009, excluding 2008, when he was ranked third. Gates stepped down as chief executive officer of Microsoft in January 2000. He remained as chairman and created the position of chief software architect.

ABOUT MICROSOFT

OVERVIEW
Microsoft is a multinational computer technology corporation. The history of Microsoft began on April 4, 1975, when it was founded by Bill Gates and Paul Allen in Albuquerque. Its current best-selling products are the Microsoft Windows operating system and the Microsoft Office suite of productivity software. Starting in 1980, Microsoft formed an important partnership with IBM that allowed them to bundle Microsoft's operating system with computers that they sold, paying Microsoft a royalty for every sale. Microsoft Corporation (NASDAQ: MSFT) is an American public multinational corporation headquartered in Redmond Washington, USA.

Key facts
Type Traded as Public NASDAQ: MSFT Dow Jones Industrial Average Component NASDAQ-100 Component S&P 500 Component Computer software Consumer electronics Digital distribution Computer hardware Video games IT consulting Online advertising Retail stores Automotive software Albuquerque, New Mexico(April 4, 1975) Bill Gates Paul Allen

Industry

Founded Founder(s)

Headquarters

One Microsoft Way Redmond, Washington ,United States Worldwide Steve Ballmer (CEO) Bill Gates (Chairman)

Area served Key people

Rankings
Revenue Operating income Profit Total assets

#38 in FORTUNE 500(May 2011)

US$ 69.94 billion (FY 2011) US$ 27.16 billion (FY 2011) US$ 23.15 billion (FY 2011) US$ 108.7 billion (FY 2011)

Total equity
Employees Website

US$ 57.08 billion (FY 2011)

90,000 (June 2011) www.microsoft.com

KEY EXECUTIVES - MICROSOFT CORP (MSFT)

Name
Steven A. Ballmer Peter S. Klein B. Kevin Turner

Title
Chief Executive Officer and Executive Director Chief Financial Officer Chief Operating Officer

Age
54 49 45

Per Adolfsson
Akther Ahmed Jane Gilson Yasuyuki Higuchi Jean-Philippe Courtois Kurt DelBene Ali El Faramawy

Chief Executive of Sweden Operations

Chief Executive Officer of Emerging Markets for Asia-Pacific Chief Executive of Czech Republic Operations Corporate Vice President, Chief Executive Officer of Microsoft Co. Ltd. for Japan Operations and President of Microsoft Co. Ltd. for Japan Operations President of Microsoft International President of the Microsoft Office Division Corporate Vice President and President of Middle East & Africa

---53 50 51 --

Steven A. Ballmer - CEO

Steven Anthony "Steve" Ballmer (born March 24, 1956) is an American businessman and the chief executive of Microsoft, having held that post since January 2000.

Steve Ballmer joined Microsoft on June 11, 1980, and became Microsoft's 30th employee, the first business manager hired by Gates.
As of 2011, his personal wealth is estimated at US$14.5 billion, ranking number 46 on the Forbes list of billionaires.

MAJOR SHAREHOLDERS OF MICROSOFT

% TOTAL SHARES SHARES SHARES % CHG FROM NAME HELD HELD CHANGE PRIOR PORT American Funds Invmt Co of Amer A 91,435,800 1.09 -930,000 -1.01 Vanguard Total Stock Mkt Idx 84,008,503 1.00 84,008,503 New American Funds Growth Fund of 78,020,100 0.93 -13,963,450 -15.18 Amer A PowerShares QQQ 75,548,852 0.90 -4,579,365 -5.72 American Funds Capital World G/I A 69,255,000 0.83 1,100,000 1.61 Vanguard 500 Index Investor 66,602,071 0.80 -317,388 -0.47 Vanguard Institutional Index Instl 60,009,150 0.72 1,468,551 2.51 SPDR S&P 500 58,511,120 0.67 -171,822 -0.29 CREF Stock 38,641,255 0.46 -741,303 -1.88 Vanguard Windsor II Investor 34,090,740 0.41 -808,100 -2.32 GMO Quality III 34,069,400 0.40 131,800 0.39 Vanguard Wellington Inv 30,479,500 0.36 7,606,900 33.26 Vanguard PRIMECAP Inv 28,690,000 0.34 200,000 0.70 Fidelity Spartan 500 Index Inv 26,273,403 0.31 0 0 American Funds Fundamental 25,920,000 0.31 -2,205,000 -7.84 Investors A American Funds Washington Mutual 25,445,680 0.30 6,890,680 37.14 A Dodge & Cox Stock 24,600,000 0.29 11,000,000 80.88 American Funds NVIT Growth-Income 24,565,100 0.29 -2,725,000 -9.99 II American Funds AMCAP A 23,545,000 0.28 3,000,000 14.60 American Funds American Balanced A 22,705,700 0.27 -2,100,000 -8.47 % TOTAL ASSETS 4.01 1.30 1.37 9.07 2.30 1.60 1.60 1.79 0.99 2.41 5.20 1.37 2.39 1.73 1.40 1.33 1.46 2.68 2.73 1.23 DATE OF PORTFOLIO 06/30/2011 03/31/2011 06/30/2011 08/31/2011 06/30/2011 06/30/2011 06/30/2011 09/29/2011 07/31/2011 06/30/2011 05/31/2011 06/30/2011 06/30/2011 08/31/2011 06/30/2011 06/30/2011 06/30/2011 06/30/2011 06/30/2011 06/30/2011

MICROSOFT HEADQUATERs

Redmond, Washington ,United States

RECENT AWARDS & RECOGNITION

2009
2009 Microsoft Supplier Diversity NW Council Supporter of the Year Microsoft Ireland: Best Workplace in Ireland for 2009, Great Place to Work Institute, Ireland Number 38 on Fortune Magazine's list of 100 Best Companies to Work For, 2009 Number 21 on UK Sunday Times 100 Best Companies to Work For 2009 Number 1 on Best Places to Work in Spain, Great Place to Work Institute, third consecutive year Number 1 on Great Place to Work Institute Sweden, Microsoft AB, third consecutive year Number 3 on Best Workplace in France list, Microsoft France, Great Place to Work Institute

2010
No. 72 on Fortunes 100 Best Companies to Work
Number 1 on the Great Place to Work list, Great Place to Work Study, Microsoft Netherlands

Number 1 on the Great Place to Work list, Great Place to

Work Institute, Microsoft Italy Number 1 on the Great Place to Work list, Great Place to

Work Institute, Microsoft Portugal

Best Workplace in Russia, HR Brand, Microsoft Russia Number 51 on Fortunes 100 Best Companies to Work For list for 2009

2011
No. 2 on 20th Annual Top 50 Employers in CAREERS & the disABLED Magazine Best Company to Work for in United Arab Emirates, Great Place to Work Institute Microsoft Dubai Named Best Workplace by the Great Place to Work Institute Dubai

ACQUISITIONS

DATE January 22, 2008 February 7, 2008

COMPANY Calista Technologies Caligari Corporation

BUSINESS Software Software

COUNTRY United States United States

VALUE (USD)

February 27, 2008

March 14, 2008 March 19, 2008 March 31, 2008 April 14, 2008 April 15, 2008 April 25, 2008 May 26, 2008 June 18, 2008 June 26, 2008 August 11, 2008

YaData
Rapt Komoku 90 Degree Software Farecast Danger Fast Search & Transfer Kidaro Navic Networks Mobicomp Powerset DATAllegro Greenfield Online

Software

Israel

Advertising yield management United States software Rootkit security software Business intelligence software Online search software Mobile Internet software Enterprise search Software Management software Mobile applications Semantic Search

United States $5,000,000 Canada

United States $75,000,000 United States $500,000,000 Norway United States United States Portugal United States $1,191,000,0 00

September 16, 2008

September 28, 2008

Data software
Search and e-commerce services

United States

United States $486,000,000

May 7, 2009

BigPark Rosetta Biosoftware

Interactive online gaming Bioinformatics solutions for life science research Software Software Identity and Access Management Software for Healthcare 3-D sensing technology Game Maker

Canada

June 1, 2009

United States

September 22, Interactive 2009 Supercomputing December 10, 2009 Opalis Software December 10, 2009 Sentillion, Inc.

United States Canada United States

October 29, 2010 October 29, 2010

Canesta, Inc. Klonoa Works

United States Japan

May 10, 2011

June 7, 2011

Skype Communication
Prodiance

Telecommunications
Software

Luxembourg
United States

$8,500,000,000

STOCK INFORMATION

Valuation Measures Market Cap (intraday)5: Value ()3: Trailing P/E (ttm, intraday): Forward P/E (fye )1: PEG Ratio (5 yr expected)1: 226.05B 187.81B 10.03 8.62 0.96

Price/Sales (ttm):
Price/Book (mrq): Enterprise Value/Revenue (ttm)3: Enterprise Value/EBITDA (ttm)6:

3.23
3.96 2.69 6.25

Financial Highlights
FISCAL YEAR
Fiscal Year Ends:
Most Recent Quarter (mrq):

30 Jun
30 Jun - 2011

PROFITABILITY
Profit Margin (ttm): Operating Margin (ttm): 33.10% 39.31%

MANAGEMENT EFFECTIVENESS
Return on Assets (ttm):
Return on Equity (ttm):

17.64%
44.84%

CASH FLOW STATEMENT

Operating Cash Flow (ttm): Levered Free Cash Flow (ttm): 26.99B 15.49B

INCOME STATEMENT
Revenue (ttm):
Revenue Per Share (ttm): Qtrly Revenue Growth (yoy): Gross Profit (ttm): EBITDA (ttm)6: Net Income Avl to Common (ttm): Diluted EPS (ttm): Qtrly Earnings Growth (yoy):

69.94B
8.24 8.30% 54.37B 30.03B 23.15B 2.69 30.00%

BALANCE SHEET
Total Cash (mrq): Total Cash Per Share (mrq): Total Debt (mrq): Total Debt/Equity (mrq): Current Ratio (mrq): Book Value Per Share (mrq): 51.37B 6.13 13.14B 23.02 2.60 6.82

Trading Information

STOCK PRICE HISTORY

Beta: 52-Week Change3: S&P500 52-Week Change3: 52-Week High ()3: 52-Week Low ()3: 50-Day Moving Average3: 200-Day Moving Average3: 0.97 7.28% 5.47% 29.46 23.65 25.73 25.58

SHARE STATISTICS
Avg Vol (3 month)3: Avg Vol (10 day)3: 66,779,400 61,356,200

Shares Outstanding5:
Float: % Held by Insiders1: % Held by Institutions1: Shares Short (as of )3: Short Ratio (as of )3: Short % of Float (as of )3: Shares Short (prior month)3:

8.38B
7.42B 10.91% 64.00% 89.40M 1.20 1.20% 83.22M

DIVIDENDS & SPLITS

Forward Annual Dividend Rate4: Forward Annual Dividend Yield4: Trailing Annual Dividend Yield3: Trailing Annual Dividend Yield3: 5 Year Average Dividend Yield4: Payout Ratio4: Dividend Date3: 0.64 2.40% 0.64 2.40% N/A 23.00%

Ex-Dividend Date4:
Last Split Factor (new per old)2: Last Date3: 2:1

INDUSTRY OVERVIEW

COMPANY DESCRIPTION
Microsoft's ambitions are anything but small. The world's #1 software company develops and sells a variety of products used by consumers and businesses. Its core products are the ubiquitous Windows PC operating system and the Office business productivity application suite that is sold in part through PC makers such as Acer, Dell, Hewlett-Packard, and Toshiba, who pre-install the software on their devices. Microsoft also sells directly online and through resellers. It also makes video game consoles (Xbox), enterprise applications (Microsoft Dynamics), server and storage software, and digital music players (Zune). Other activities include online advertising, mobile software, and consulting and support services.

For past 3 yrs

MICROSOFT Vs OTHER COMPANIES

MSFT Sector / Industry Membership

Sector Industry Technology Application Software

Top Application Software Companies by Market Cap

COMPANY
Microsoft Corporation Oracle Corp. SAP AG Salesforce.com Intuit Inc. Adobe Systems Inc.

SYMBOL
MSFT ORCL SAP CRM INTU ADBE

PRICE
26.98 28.35 50.59 128.41 48.94 24.64

CHANGE
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

MARKET CAP
226.05B 143.61B 60.18B 17.40B 14.72B 12.17B

P/E
10.03 16.98 22.97 626.39 24.47 13.20

MSFT VS. INDUSTRY LEADERS

STATISTIC
Market Capitalization P/E Ratio (ttm) PEG Ratio (ttm, 5 yr expected) Revenue Growth (Qtrly YoY) EPS Growth (Qtrly YoY) Long-Term Growth Rate (5 yr) Return on Equity (ttm) Long-Term Debt/Equity (mrq) Dividend Yield (annual) AMSWA 4.60%

INDUSTRY LEADER
MSFT CRM GUID OBAS QADA SEAC ZIXI 226.05B 626.39 3.76 825.20% 883.60% 46.00% 212.62%

MSFT
10.03 0.96 8.30% 33.40% 9.90% 44.84% 23.016 2.40%

MSFT RANK
1 / 112 51 / 112 43 / 112 62 / 112 24 / 112 62 / 112 3 / 112 N/A 2 / 112

DIRECT COMPETITOR COMPARISON

MSFT Market Cap: Employees: Qtrly Rev Growth (yoy): Revenue (ttm): 227.22B 90,000 AAPL 371.30B 46,600 GOOG 176.52B 28,768 ORCL 148.07B 108,000 INDUSTRY 275.65M 600.00

8.30% 69.94B 77.73% 30.03B

39.31%

82.00% 100.32B 39.82% 32.08B

30.43%

32.30% 33.33B 65.18% 12.78B

33.62%

13.40% 35.62B 76.43% 14.53B

35.73%

21.90% 147.17M 69.86% 21.94M

10.50%

Gross Margin (ttm): EBITDA (ttm): Operating Margin (ttm): Net Income (ttm): EPS (ttm): P/E (ttm):
PEG (5 yr expected): P/S (ttm):

23.15B 2.69 10.08

0.95 3.25

23.61B 25.28 15.84

0.63 3.70

9.01B 27.72 19.72

0.81 5.30

8.55B 1.67 17.50

0.80 4.16

N/A 0.24 24.79

1.06 2.57

AAPL = Apple Inc. GOOG = Google Inc.

ORCL = Oracle Corp. Industry = Application Software

ECONOMIC PERFORMANCE

IN MILLIONS OF USD (EXCEPT FOR PER SHARE ITEMS)

12 12 MONTHS MONTHS ENDING ENDING 2011-06-30 2010-06-30

69,943.00 69,943.00 15,577.00 54,366.00 18,162.00 9,043.00 62,484.00 62,484.00 12,395.00 50,089.00 17,218.00 8,714.00 -

12 MONTHS ENDING 2009-06-30

58,437.00 58,437.00 12,155.00 46,282.00 16,579.00 9,010.00 -

12 MONTHS ENDING 2008-0630

60,420.00 60,420.00 11,598.00 48,822.00 18,387.00 8,164.00 -

Revenue Other Revenue, Total Total Revenue Cost of Revenue, Total Gross Profit Selling/General/Admin. Expenses, Total Research & Development Depreciation/Amortization Interest Expense(Income) - Net Operating Gain (Loss) on of Assets

Other, Net

-31.00

14.00

-56.00

-143.00

Income Before Tax

28,071.00

25,013.00

19,821.00

23,814.00

Income After Tax Minority Interest Equity In Affiliates Net Income Before Extra. Items Accounting Change Discontinued Operations Extraordinary Item Net Income Preferred Dividends Income Available to Common Excl. Extra Items -

23,150.00 23,150.00

18,760.00 18,760.00 -

14,569.00 14,569.00 -

17,681.00

17,681.00

23,150.00 23,150.00

14,569.00 17,681.00 14,569.00 17,681.00

18,760.00 18,760.00 -

Income Available to Common Incl. Extra Items

Basic Weighted Average Shares Basic EPS Excluding Extraordinary Items Basic EPS Including Extraordinary Items Dilution Adjustment Diluted Weighted Average Shares -

23,150.00
-

18,760.0 0
-

14,569.0 0
0.00 8,996.00

17,681.0 0

0.00 9,470.00

8,593.00

8,927.00

Diluted EPS Excluding Extraordinary Items

Diluted EPS Including Extraordinary Items

2.69
0.64 -

2.10
0.52 -

1.62
0.52 -

1.87
0.44 -

Dividends per Share - Common Stock Primary Issue

Gross Dividends - Common Stock Net Income after Stock Based Comp. Expense Basic EPS after Stock Based Comp. Expense

Diluted EPS after Stock Based Comp. Expense Depreciation, Supplemental

Total Special Items

Normalized Income Before Taxes Effect of Special Items on Income Taxes Income Taxes Ex. Impact of Special Items Normalized Income After Taxes

Normalized Income Avail to Common

Basic Normalized EPS Diluted Normalized EPS

2.69

2.11

1.58

1.87

Goals & objectives

Corporate governance at Microsoft serves several purposes: Establish and preserve management accountability to Microsoft's owners by appropriately distributing rights and responsibilities among Microsoft Board members, managers, and shareholders. Provide a structure through which management and the Board set objectives and monitor performance. Strengthen and safeguard our culture of business integrity and responsible business practices. Encourage the efficient use of resources, and to require accountability for stewardship of those resources.

BOARD OVERSIGHT
Shareholders elect the Board to oversee management and to assure that shareholder long-term interests are served. Through oversight, review, and counsel, the Board establishes and promotes Microsoft's business and organizational objectives.
SHAREHOLDER ACCOUNTABILITY Accountability makes us a stronger company, more responsive and better aligned for success. Microsoft is a leader in adopting standards to increase accountability to shareholder, including majority voting for Board directors and Say on Pay advisory votes on executive compensation.

CORPORATE GOVERNANCE GUIDELINES

Over the course of Microsoft's history, the Board of Directors has developed corporate governance policies and practices to help it fulfill its responsibilities to shareholders. The Board routinely reviews evolving practices to determine those that will best serve the interests of our shareholders.

VISION & MISSION

Diversity and inclusion are integral to Microsofts vision, strategy and business success. We recognize that leadership in todays global marketplace requires that we create a corporate culture and an inclusive business environment where the best and brightest diverse mindsemployees with varied perspectives, skills, and experiences--work together to meet global consumer demands. The collaboration of cultures, ideas, and different perspectives is an organizational asset and brings forth greater creativity and innovation. Microsoft is on an accelerated path of growth. Empower people through great software anytime, anyplace, and on any device.

SWOT ANALYSIS
STRENGTHS
Microsoft is a huge global brand. It is recognizable for two main reasons. It was one of the largest software developers it has developed a customer base of around 30 million people. It has built its reputation on the successful development of its computer softwares namely the Windows line of products. Brand is all-important. Microsoft is one of the most established and healthy IT brands in the World, and has a very loyal set of enthusiastic customers that advocates and uses the brand.

The company is composed of different main offices inside the United States
and around the globe making the distribution and development of its products easily accessible to the consumers.

WEAKNESS
Microsoft lacks a solid client and service support center on the internet. This is important since problems and bugs with regards to their products must

be fix rapidly to attain efficiency.

The lack of a customer service center would erode the integrity and quality perceived by costumers on Microsoft products.

Microsoft products have compatibility issues with other hardwares and

softwares manufactured by other companies. Microsoft does not share the programming codes of its softwares making modification difficult if bugs and other malfunctions are detected by programmers not affiliated to the company.

OPPORTUNITIES
Microsoft moved into the Chinese market by producing computer programs

based on the Chinese language and giving discretionary authority to the

Chinese government to censure and to eaves drop on emails, documents and webpage. Microsoft has also diversified its products. During the past years the company has ventured into fields such as game design, game developing and publishing and the production of game consoles such as the Xbox. The company has also branched out to provide free email and news services

to its costumers.
It has also developed softwares and computer programs that is vital in organizing business spreadsheets and data.

THREATS
The success of Microsoft in software development has spawned other

competitors to follow the footsteps of the company towards success.

The primary competitor of the company in the operating systems industry is the Linux program developed by independent programmers. Since the company is diversifying in other fields it competes its products with the products being made by companies who have been experts in their chosen industry. Another threat that is being faced by Microsoft is the different lawsuits and indictments against the company being made by independent companies, programmers and software developers.

MICROSOFT PRODUCTS

LATEST PRODUCTS OF MICROSOFT

Office 365 Windows Intune Dynamics CRM 11 SQL Server Microsoft Dynamics GP 2010 R2 Microsoft Dynamics AX 2012 Windows MultiPoint Server 2011 Windows Storage Server 2008 R2 Essentials

Windows Small Business Server (SBS) 2011 Windows Home Server Dynamics SL 2011 Windows 8

Internet Explorer 9 Silverlight 5 Visual Studio LightSwitch