International Business Machines Corporation · NYSE:IBM

International Business Machines — Q3 2019 Earnings Presentation

11 slides from International Business Machines's earnings presentation, Oct 17, 2019

  1. Slide 1: IBM 3Q 2019 Earnings Non-GAAP Supplemental Material

    IBM 3Q 2019 Earnings Non-GAAP Supplemental Material Oct 16, 2019 ibm.com/investor 1

  2. Slide 2: Reconciliation of Operating Earnings Per Share

    2 Non-GAAP Supplemental Materials Reconciliation of Operating Earnings Per Share 2019 Full-Year Expectations GAAP Diluted EPS Operating EPS (Non-GAAP) at least $10.58 at least $12.80 Adjustments Acquisition-Related Charges* Non-Operating Retirement-Related Items Tax Reform Enactment Impacts $1.52 $0

  3. Slide 3: Reconciliation of Revenue Performance - 3Q 2019

    3 Non-GAAP Supplemental Materials Reconciliation of Revenue Performance - 3Q 2019 3Q19 Yr/Yr 3Q19 Yr/Yr GAAP @CC GAAP @CC Global Technology Services Infrastructure & Cloud Services Technology Support Services Cloud Systems Systems Hardware IBM Z Power Storage Operating Systems Software Cloud Global

  4. Slide 4: Reconciliation of Revenue Performance by Geography and Cloud

    4 Non-GAAP Supplemental Materials Reconciliation of Revenue Performance - 3Q 2019 3Q19 Yr/Yr Divest impact Currency impact Adjusted GAAP Americas Europe/ME/Africa Asia Pacific (4%) (6%) (1%) 3 pts 2 pts 1 pts 0 pts 4 pts (1 pts) (1%) Flat (1%) 3Q19 Yr/Yr Divest impact Currency impact GAAP Adjusted T

  5. Slide 5: Reconciliation of Revenue Performance - Total Revenue

    5 Non-GAAP Supplemental Materials Reconciliation of Revenue Performance - 3Q 2019 3Q19 Yr/Yr GAAP Divest impact Currency impact Adjusted Revenue (3.9%) 2.0 pts 1.3 pts (0.6%) The above reconciles the Non-GAAP financial information contained in the “Key Financial Metrics”, and “3Q19 Prepared Remarks”

  6. Slide 6: Revenue for Red Hat, Normalized - 3Q 2019

    6 Non-GAAP Supplemental Materials Reconciliation of Revenue for Red Hat, Normalized - 3Q 2019 Three Months Ended Revenue for Red Hat, Normalized for Historical Comparability Sep 30 2019 Sep 30 2018 Yr/Yr Yr/Yr@CC Red Hat revenue as reported in IBM consolidated results (1) $371 $ - Add: Red Hat reven

  7. Slide 7: Reconciliation of Expense Summary

    7 Non-GAAP Supplemental Materials Reconciliation of Expense Summary - 3Q 2019 3Q19 Non-GAAP Adjustments Operating (Non-GAAP) GAAP SG&A Currency Acquisitions/Divestitures Base* RD&E Currency Acquisitions/Divestitures Base* Operating Expense & Other Income Currency Acquisitions/Divestitures Base* 2 pt

  8. Slide 8: Reconciliation of Free Cash Flow - Last 12 Months

    8 Non-GAAP Supplemental Materials Reconciliation of Free Cash Flow - Last 12 Months 12 Months Ended Sep 2019 Net Cash from Operating Activities per GAAP: $15.4 Less: change in Global Financing (GF) Receivables $0.5 Net Cash from Operating Activities (Excluding GF Receivables) $14.9 Capital Expenditu

  9. Slide 9: Reconciliation of Free Cash Flow Realization - Last 12 Months

    9 Non-GAAP Supplemental Materials Reconciliation of Free Cash Flow Realization - Last 12 Months LTM Excluding Tax Reform* LTM Free Cash Flow Realization 160% 126% The above reconciles the Non-GAAP financial information contained in the “Key Financial Metrics”, “Cash Flow and Balance Sheet Highlights

  10. Slide 10: Reconciliation of Tax Rate

    10 Non-GAAP Supplemental Reconciliation of Tax Rate Materials Tax Rate Expectation GAAP Non-GAAP Full Year 2019* 8-9% 9-10% *includes estimate of discrete tax events for the year; actual events will be recorded as they occur The above reconciles the Non-GAAP financial information contained in the “3

  11. Slide 11: ibm.com/investor

    11 ibm.com/investor

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