International Business Machines Corporation · NYSE:IBM
International Business Machines — Merger or Acquisition (October 2018)
12 slides from International Business Machines's merger presentation, Oct 29, 2018
Slide 1: Forward looking statements and non-GAAP information
Forward looking statements and non-GAAP information Certain statements contained in this presentation may be characterized as forward-looking under the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actua
Slide 2: Creating the world's leading hybrid cloud provider
Creating the world’s leading hybrid cloud provider + Leading provider of enterprise cloud & AI solutions Leading provider of open source solutions Completely changing the cloud landscape 4
Slide 3: The second chapter of cloud unlocks value and drives growth
The second chapter of cloud unlocks value and drives growth $1.0T hybrid cloud opportunity by 2020 #1 Linux platform for applications 80% of enterprise workloads have yet to migrate to the cloud Management Hybrid 5 Multi-cloud Open Secure
Slide 4: Red Hat has evolved from an open source pioneer to a driving force in hybrid cloud computing
Red Hat has evolved from an open source pioneer to a driving force in hybrid cloud computing 90% Fortune 500 adoption 8M+ Developers 19% Revenue growth (LTM) ~85% Gross Profit Margin ~$1B Free cash flow 6 Foundational technology for hybrid computing Common platform across all environments Leadership
Slide 5: Acquiring Red Hat drives new growth opportunities across IBM
Acquiring Red Hat drives new growth opportunities across IBM …and the time is right to add Red Hat’s open hybrid cloud technologies IBM has been building a foundation… + Stora Growth opportunities across IBM software, services, systems 7 New solutions in the last 12 months IBM Cloud Private IBM Clou
Slide 6: Transaction overview
Transaction overview Transaction Summary $190 Per Share ~$34B Enterprise Value 2H’19 Expected closure date Dependent on regulatory approvals 8 Financed with combination of cash and debt Commitment to continued dividend growth Maintain strong investment grade rating Intend to suspend share repurchase
Slide 7: Red Hat accelerates IBM's revenue growth and shift to higher value
Red Hat accelerates IBM’s revenue growth and shift to higher value Operating GP Margin accretive in Year 1 Cash flow accretive in Year 1 9 …enhancing IBM financial performance Accelerates Revenue Growth +200 bps to IBM revenue growth Accelerates Shift to Higher Value Operating EPS accretive by end o
Slide 8: IBM + Red Hat opens up additional opportunities across Red Hat
IBM + Red Hat opens up additional opportunities across Red Hat Benefit to ed Hat opportunity through expanded delivery of Leverage IBM’s industry expertise, enterprise relationships, services capabilities, and scale 10 R Provide significant cross-selling industry-leading open source solutions Operat
Slide 9: IBM and Red Hat share common beliefs
IBM and Red Hat share common beliefs Hybrid Multi-cloud Open It’s a hybrid world Containers are strategic Certified stacks are secure Innovation is the path forward Secure Management 12
Slide 10: IBM + Red Hat drives significant benefits to clients
IBM + Red Hat drives significant benefits to clients Benefits to Clients Consistent management across multiple clouds A path to migrate traditional workloads to the cloud Enterprise-grade open hybrid cloud A cloud that is secure to the core 13 Benefits to Red Hat Leverage industry expertise and scal
Slide 11: The world's leading hybrid cloud provider + Completely changing the cloud landscape
The world’s leading hybrid cloud provider + Completely changing the cloud landscape 14
Slide 12: The world's leading hybrid cloud provider
The world’s leading hybrid cloud provider Completely changing the cloud landscape it ‘bl "a
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