International Business Machines Corporation · NYSE:IBM
International Business Machines — Q2 2018 Earnings Presentation
10 slides from International Business Machines's earnings presentation, Jul 19, 2018
Slide 1: 2018 Expectations
2018 Expectations GAAP Diluted EPSat least $11.60 Operating EPS (Non-GAAP) at least $13.80 Adjustments Acquisition-Related Charges*$0.78 Non-Operating Retirement-Related Items$1.32 Tax Reform Enactment Charge Adjustment $0.10 *Includes acquisitions as of June 30, 2018
Slide 2: Reconciliation of Operating Earnings Per Share
Non-GAAP Supplemental Materials Reconciliation of Operating Earnings Per Share 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 Tax Reform Enactment Charge Adjustmen
Slide 3: Strategic Imperatives Revenue Reconciliation
2Q18 Yr/Yr GAAP @CC The above reconciles the Non-GAAP financial information contained in the “Strategic Imperatives Revenue” discussion in the company’s earnings presentation. See Exhibit 99.2 included in the Company’s Form 8-K dated July 18, 2018 for additional information on the use of these Non-G
Slide 4: Segment Revenue Growth, GAAP and at Constant Currency
2Q18 Yr/Yr 2Q18 Yr/Yr Strategic Imperatives 1% Flat Cloud Flat (1%) Technical Support Services (2%) (4%) Integration Software 3% 1% Strategic Imperatives 8% 6% Cloud 10% 8% z Systems114% 112% Power 5% 4% Storage 4% 2% Operating Systems Software Flat (1%) Strategic Imperatives 57% 55% Cloud 30% 28% G
Slide 5: Technology Services & Cloud Platforms Segment Reconciliation
2Q18 Yr/Yr The above reconciles the Non-GAAP financial information contained in the “2Q18 Prepared Remarks” and “Technology Services & Cloud Platforms Segment” discussions in the company’s earnings presentation. See Exhibit 99.2 included in the Company’s Form 8-K dated July 18, 2018 for
Slide 6: Reconciliation of Expense Summary - 2Q 2018
Reconciliation of Expense Summary - 2Q 2018 SG&A Non-GAAP Operating GAAPAdjustments (Non-GAAP) Currency (1 pts) 0 pts (1 pts) Acquisitions 0 pts 0 pts 0 pts Base * 5 pts 0 pts 5 pts RD &E Currency (1 pts) 0 pts (1 pts) Acquisitions 0 pts 0 pts 0 pts Base * 6 pts 0 pts 6 pts Oper ating Expense & Othe
Slide 7: Free Cash Flow Reconciliation
12 Months Ended Jun 2018 Net Cash from Operating Activities per GAAP:$16.2 Less: the change in Global Financing (GF) Receivables ($0.0) Net Cash from Operating Activities (Excluding GF Receivables)$16.2 Capital Expenditures, Net ($3.6) Free Cash Flow (Excluding GF Receivables)$12.6 $ in billions The
Slide 8: Free Cash Flow Realization
LTM Excluding LTMTax Reform* Free Cash Flow Realization219% ~111% The above reconciles the Non-GAAP financial information contained in the “Cash Flow and Balance Sheet Highlights” discussion in the company’s earnings presentation. See Exhibit 99.2 included in the Company’s Form 8-K dated July 18, 20
Slide 9: Reconciliation of Free Cash Flow Realization - Last 12 Months
Non-GAAP Supplemental Materials Reconciliation of Free Cash Flow Realization-Last 12 Months LT™ Excluding LIM Tax Reform* Free Cash Flow Realization 219% ~111% The above reconciles the Non-GAAP financial information contained in the “Cash Flow and Balance Sheet Highlights” discussion in the company’
Slide 10: ibm.com/investor
ibm.com/investor
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