International Business Machines Corporation · NYSE:IBM

International Business Machines — IBM — Investor Day (May 2010)

8 slides from International Business Machines's investor day presentation, May 2010

  1. Slide 1: IBM 2015 Roadmap

    IBM 2015 Roadmap Mark Loughridge Senior Vice President and Chief Financial Officer

  2. Slide 2: Forward-looking statements and non-GAAP information

    Certain comments made in the presentation may be characterized as forward looking under the Private Securities Litigation Reform Act of 1995. Those statements involve a number of factors that could cause actual results to differ materially. Additional information concerning these factors is containe

  3. Slide 3: IBM Transformation

    IBM Transformation At Least Operating PTI / EPS * $20 2015 Roadmap Segment Operating PTI$ Operating EPS ƒ Software contributes nearly half of our segment profit ƒ Growth initiatives deliver $20B in revenue growth ƒ Growth markets revenue exceeds 25% of IBM’s total ƒ Enterprise productivity delivers

  4. Slide 4: 2015 Roadmap

    2015 Roadmap Shift to Faster ~$20B of Enterprise Shift to a Higher ~$50B Returned Base Revenue Growing Business Acquisition Spend Productivity Value Portfolio Through Share Growth ~2% Mix Provides ~1% Provides ~2% Yields Margin Continues to Repurchase Revenue Growth Revenue Growth Expansion Provide

  5. Slide 5: Uses of Cash / Free Cash Flow

    Uses of Cash / Free Cash Flow At Least $20 IBM generates about $100B in free cash flow and creates over $40B of financial flexibility by 2015 ~2.80 Share Repurchase Free Cash Flow* Primary Uses of Cash $B ~2.80 ƒ Continued free cash flow growth Operating ƒ Cash realization over 100% Leverage ~$100B

  6. Slide 6: IBM Model supports the Roadmap base and provides opportunity for upside

    2015 Roadmap At Least $20 IBM Model supports the Roadmap base and ~2.80 Share provides opportunity for upside Repurchase ~2.80 +1 to 2% Operating ƒ Full execution on growth Leverage Additional initiatives objectives Revenue Growth ~3.05 Revenue Growth ƒ Full benefit of $8B in enterprise +$4B product

  7. Slide 7: Dividend and Share Repurchase

    Dividend and Share Repurchase At Least Dividend and share repurchase program provides compelling returns $20 2010 Roadmap 2015 Roadmap Roadmap Guidance ~2.80 As of May 17, 2007 As of May 10, 2010 Share Repurchase Annual Average Return ($B) ~$12 ~$14 Share Repurchase $10 $10 ~2.80 Dividend $2 $4 Oper

  8. Slide 8: Slide 8

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