International Business Machines Corporation · NYSE:IBM
International Business Machines — Q3 2018 Earnings Presentation
9 slides from International Business Machines's earnings presentation, Oct 17, 2018
Slide 1: Reconciliation of Operating Earnings Per Share - 2018 Expectations
Non-GAAP Supplemental Materials Reconciliation of Operating Earnings Per Share 2 2018 Expectations GAAP Diluted EPS at least $11.60 Operating EPS (Non-GAAP) at least $13.80 Adjustments Acquisition-Related Charges* $0.78 Non-Operating Retirement-Related Items $1.32 YTD Tax Reform Enactment Charge Adj
Slide 2: Reconciliation of Revenue Growth - 3Q 2018 (Geographic)
Non-GAAP Supplemental Materials Reconciliation of Revenue Growth - 3Q 2018 3 3Q18 Yr/Yr GAAP @CC Americas (1%) 1% Europe/ME/Africa (3%) (2%) Asia Pacific (3%) (1%) United States Flat Flat Japan Flat Flat Latin America (9%) 3% The above reconciles the Non-GAAP financial information contained in the “
Slide 3: Reconciliation of Revenue Growth - 3Q 2018 (Strategic Imperatives)
Non-GAAP Supplemental Materials Reconciliation of Revenue Growth - 3Q 2018 4 3Q18 Yr/Yr GAAP @CC Strategic Imperatives 5% 7% Analytics 1% 2% Cloud 11% 13% aaS annual run rate 21% 24% Mobile 4% 5% Security 33% 34% Social (15%) (14%) The above reconciles the Non-GAAP financial information contained in
Slide 4: Reconciliation of Revenue Growth - 3Q 2018 (Segments)
Non-GAAP Supplemental Materials Reconciliation of Revenue Growth - 3Q 2018 3Q18 Yr/Yr 5 3Q18 Yr/Yr GAAP @CC GAAP @CC C ognitive Sol utions (6%) (5%) T ech Svcs & Cloud Platfor m s (2%) Flat Solutions Software (4%) (3%) Global Technology Services (2%) Flat Transaction Processing Software (10%) (8%) I
Slide 5: Expense Summary
Non-GAAP Supplemental Materials Reconciliation of Expense Summary - 3Q 2018 6 Non-GAAP Adjustments Operating (Non-GAAP) GAAP SG&A Currency 2 pts 0 pts 2 pts Acquisitions 0 pts 0 pts 0 pts Base * 4 pts 0 pts 3 pts RD &E Currency 1 pts 0 pts 1 pts Acquisitions 0 pts 0 pts 0 pts Base * 2 pts 0 pts 2 pt
Slide 6: Free Cash Flow - Last 12 Months
Non-GAAP Supplemental Materials Reconciliation of Free Cash Flow-Last 12 Months 7 12 Months Ended Sep 2018 Net Cash from Operating Activities per GAAP: $16.9 Less: the change in Global Financing (GF) Receivables $0.8 Net Cash from Operating Activities (Excluding GF Receivables) $16.0 Capital Expendi
Slide 7: Free Cash Flow Realization - Last 12 Months
Non-GAAP Supplemental Materials Reconciliation of Free Cash Flow Realization-Last 12 Months 8 LTM Excluding Tax Reform* LTM Free Cash Flow Realization 214% ~108% The above reconciles the Non-GAAP financial information contained in the “Cash Flow and Balance Sheet Highlights” discussion in the compan
Slide 8: Reconciliation of Free Cash Flow Realization - Last 12 Months
Non-GAAP Supplemental Materials ° Reconciliation of Free Cash Flow Realization-Last 12 Months LTM Excluding LT™M Tax Reform* Free Cash Flow Realization 214% ~108% The above reconciles the Non-GAAP financial information contained in the “Cash Flow and Balance Sheet Highlights” discussion in the compa
Slide 9: ibm.com/investor
ibm.com/investor
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