International Business Machines Corporation · NYSE:IBM
International Business Machines — Shareholder Meeting (April 2021)
17 slides from International Business Machines's shareholder meeting presentation, Apr 6, 2021
Slide 1: IBM Investor Update Spring 2021
IBM Investor Update Spring 2021
Slide 2: 2020 Business Results
Revenue Gross Profit Margin Net Income from Continuing Operations Cash from Operations 2 2020 Business Results $73.6B Grew Cloud revenues to over $25 billion with strong double - digit growth year over year Red Hat delivered strong double - digit revenue growth, normalized (non - GAAP) 48.3% Expande
Slide 3: Hybrid Cloud and AI Strategy
Hybrid Cloud and AI Strategy 3 Hybrid Cloud Value AI Differentiation IBM Global Business Services System Integrator Partners Software and SaaS Partners Hybrid Cloud Platform Dev Sec Ops IBM’s Hybrid Cloud and AI Solutions SOFTWARE HYBRID CLOUD PLATFORM INFRASTRUCTURE Automation Language Trust 76% AI
Slide 4: Accelerating IBM's Performance
Accelerating IBM's Performance Growth Mindset Separate NewCo Streamline Operations Technology Skills Ecosystem Sustainable revenue growth and free cash flow Key Initiatives Increased Investments Organic/Inorganic Accelerated Growth 4 Strategy
Slide 5: Establishing Two Market-Leading Companies with Focused Strategies
Establishing Two Market - Leading Companies with Focused Strategies IBM #1 Hybrid Cloud Platform and AI Company NewCo #1 Managed Infrastructure Services Company Technology & platform innovation Digital transformations Significant growth opportunities IT infrastructure modernization Service delivery
Slide 6: Building the Right Board for IBM's Next Chapter
6 Building the Right Board for IBM’s Next Chapter @ 2020 IBM Corporation Retired Chairman and CEO, The Vanguard Group President, Cornell University Retired Chairman, President & CEO, Anthem, Inc. Chairman, Emerson Electric Co. Retired Chairman and CEO, UPS Retired CEO, Royal Dutch Shell plc Retired
Slide 7: Optimal Mix of Skills and Experience for Board
Optimal Mix of Skills and Experience for Board Public Company Board 9 Organizational Leadership and Management 12 Global Business Operations 10 Finance/Public Company CFO 6 Tech, Cybersecurity, or Digital 12 Government / Public Policy 12 Highly Qualified Director Nominees with Diverse Experiences In
Slide 8: Reinforcing IBM's Pivot to Sustainable Growth
Reinforcing IBM’s Pivot to Sustainable Growth IBM’s Compensation Practices have been revamped to ensure alignment with IBM’s growth strategy and investor expectations: 1. Accelerate our Hybrid Cloud and AI revenue growth strategy 2. Generate cash flow growth for increased investment and shareholder
Slide 9: Compensation Aligns with High-Value Business Model
Compensation Aligns with High - Value Business Model Short Term (25%) Base Salary (8%) Annual Incentive (16%) Target: 200% of Base Salary Long Term (75%) Performance Share Units (49%) Restricted Stock Units (26%) 9 Compensation For 2020, at target, 65% of CEO pay was at risk and subject to attainmen
Slide 10: Responsibly Advocating Public Policy; Environmental and Social Responsibility
Responsibly Advocating Public Policy Protecting the Environment Responding to COVID - 19 Supporting the IBMer Operating with Trust and Transparency @ 2020 IBM Corporation Environmental and Social Responsibility Environment & Social IBM’s Proxy Statement sets forth our world - class governance practi
Slide 11: Protecting the Environment
Protecting the Environment Net Zero greenhouse gas emissions by 2030 Reduce greenhouse gas emissions 65% by 2025 versus 2010 base year 75% renewable electricity by 2025; 90% by 2030 11 Environment & Social
Slide 12: IBM's Commitment to Diversity & Inclusion
IBM seeks to ensure IBMers from diverse backgrounds are engaged, feel supported to be their authentic selves, build skills, and achieve their greatest potential IBM’s Board of Directors recently adopted a policy committing IBM to publish annually a diversity and inclusion report; the first report wi
Slide 13: Voting Item 4: Stockholder Proposal on Independent Chair
▪ IBM’s Lead Director role is robust and ensures effective independent oversight at all times ▪ The full Board reviews our leadership structure annually to ensure the allocation of responsibilities remains appropriate ▪ The Board’s flexibility to determine the appropriate Board leadership structure
Slide 14: Voting Item 5: Stockholder Proposal on Written Consent
▪ Majority written consent would allow a bare majority of stockholders to act without a meeting , let alone notice to the other IBM stockholders ▪ This allows for meaningful discourse and deliberation to occur before important decisions are made affecting IBM ▪ This transparency and fairness for all
Slide 15: We Request Your Support at the 2021 Annual Meeting of Stockholders
We Request Your Support at the 2021 Annual Meeting of Stockholders The Board asks that you vote: x FOR Election of all Twelve Director Nominees x FOR Ratification of PricewaterhouseCoopers LLP as IBM’s Independent Registered Public Accounting Firm x FOR Advisory Vote on Executive Compensation x FOR
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Slide 17: Forward-Looking Statements, Non-GAAP and Other Information
Forward - Looking Statements, Non - GAAP and Other Information @ 2020 IBM Corporation Certain comments made in this presentation may be characterized as forward looking under the Private Securities Litigation Reform Act of 1995. Forward - looking statements are based on the company’s current assumpt
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