The Lessee Advocate

Interview with Ingemar Lanevi, Treasurer, NetApp

Transcript: How important are timely returns to your analysis?

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Interviewer: So, if you send the equipment back at the end of the lease, and you’re able to monetize the residual that you’ve outsourced…

Ingemar Lanevi: Correct.

Interviewer: … which brings direct economic benefit to the company in addition to the cash flow benefit…

Ingemar Lanevi: Correct. So, if you buy in on the long-term benefits of a lease portfolio or lease program where you habitually do a tech refresh every three years, and if you assume that the residual value in the equipment is, say, 20 percent for the sake of arguments, effectively what you have been able to do is, in perpetuity, you have lowered your IT run rate by that residual value of 20 percent. In perpetuity.

As long as you do the tech refresh, you will never pay for that residual ever again.

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How important are timely returns to your analysis? Show transcript	How do renewals and buyouts affect your analysis? Show transcript
Are you concerned about IFRS and having to capitalize leases? Show transcript	WACC or Cost of Debt: which do you use for leasing? Show transcript
What internal problems did you overcome to make leasing successful? Show transcript	How did outsourcing your leasing administration and automation help you? Show transcript
What advice would you give to other finance and procurement executives? Show transcript	What is your role at NetApp? Show transcript