Slide 1: IBM Investor Update Spring 2019
IBM Investor Update Spring 2019 1
Slide 2: 2018 Business Highlights
2018 Business Highlights Strategy IBM returned to growth in 2018, grew earnings per share and stabilized margins Full-year revenue growth $79.6B Revenue Cloud revenue of $19 billion, with growth led by as-a-Service 46.4% Stabilized margins, with margin expansion in the second half Gross Profit Margi
Slide 3: IBM's Strong Foundation for the Cognitive and Cloud Era
IBM’s Strong Foundation for the Cognitive and Cloud Era Strategy IBM is uniquely positioned to move enterprise clients to the next chapter of digital reinvention Scaling AI Hybrid Cloud Moving from experimentation Moving mission-critical workloads to production, scaling and embedding AI to the cloud
Slide 4: Positioned for the Future
Positioned for the Future Strategy IBM has taken actions to lead in the emerging, high-value segments of the IT market, and deliver long-term value to stockholders Longer-Term IBM Today Recent Actions Financial Model #1 in enterprise IT, Maintained high level of investment Revenue and #1 in… in R&D,
Slide 5: Commitment to Stockholder Engagement and Responsiveness
Stockholder Commitment to Stockholder Engagement and Responsiveness Engagement We have a continuous practice of meeting with a significant number of our largest investors throughout the year to solicit and incorporate feedback into our practices and disclosures Engaging with Stockholders Gathering F
Slide 6: Executive Compensation Aligns with High-Value Business Model
Executive Compensation Aligns with High-Value Business Model Compensation Compensation Committee ensures that our pay programs for our senior executives are closely aligned to IBM’s strategy and performance 2018 CEO Pay Mix Base Salary (8%) • Market competitive Short-Term • Operating Cash Flow (40%)
Slide 7: Performance-Based Executive Compensation
Performance-Based Executive Compensation Compensation Annual and long-term incentive program target metrics are set at rigorous levels, with pay-at-risk designed to balance short- and long-term business objectives LONG-TERM PERFORMANCE SHARE UNIT CEO ANNUAL INCENTIVE PROGRAM 2018 Annual Incentive Pr
Slide 8: Thoughtful Approach to Active Board Refreshment
Thoughtful Approach to Active Board Refreshment Governance Our Director Nominees, all leaders in their respective fields, have a deep understanding of our business and extensive industry expertise to contribute diverse and fresh perspectives VIRGINIA ROM ETTY Lead M I C H AE L E S K E W Director As
Slide 9: Optimal Mix of Skills and Experience for Director Nominees
Optimal Mix of Skills and Experience for Director Nominees Governance The Board is committed to ongoing, proactive refreshment and maintaining a diversity of backgrounds, talents and perspectives Balanced Mix of Tenures Highly Qualified Director Nominees with Diverse Experiences Public Company Board
Slide 10: Commitment to Governance Best Practices
Commitment to Governance Best Practices Governance The table below highlights practices that IBM embraces in support of strong governance Stockholder Rights and Governance Best Practices Compensation Governance Best Practices Annual election of directors Tie a significant portion of pay to Compa
Slide 11: Corporate Responsibility is Smart Business
Corporate Responsibility is Smart Business Sustainability Under the Board’s guidance and supervision, IBM’s longstanding commitment to the highest standards of corporate responsibility is an integral part of our long-term performance strategy CORPORATE CITIZENSHIP CORPORATE CITIZENSHIP SUPPLY CHAIN
Slide 12: Voting Item 5: Stockholder Proposal on Written Consent
Voting Item 5: Stockholder Proposal on Written Consent Proposals The Board recommends a vote AGAINST this proposal and believes that action by written consent without prior notice to all stockholders is not in the best interest of stockholders The Board does not believe that majority written consent
Slide 13: Voting Item 6: Stockholder Proposal on Independent Chairman
Voting Item 6: Stockholder Proposal on Independent Chairman Proposals The Board recommends a vote AGAINST this proposal because the Board’s flexibility to determine the appropriate leadership structure is essential and IBM has a robust Lead Director role ensuring effective independent oversight The
Slide 14: We Request Your Support at the 2019 Annual Meeting of Stockholders
We Request Your Support at the 2019 Annual Meeting of Stockholders Proposals FOR Election of all Twelve Director Nominees Ratification of PricewaterhouseCoopers LLP as IBM’s Independent Registered The Board asks that FOR Public Accounting Firm you vote: FOR Advisory Vote on Executive Compensat
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Slide 16: Appendix A
Appendix A 16
Slide 17: Forward-Looking Statements and Non-GAAP Information
Forward-Looking Statements and Non-GAAP Information 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 assumptions regarding future business and f