15 slides from International Business Machines's shareholder meeting presentation, 2023
Slide 1: IBM Investor Update
IBM Investor Update Spring 2023
Slide 2: Our Strategy: Hybrid Cloud and AI
Our Strategy STRATEGY Hybrid Cloud and AI Our differentiation Our actions Our model – Hybrid Cloud and AI – Portfolio optimization – Sustainable revenue focus with platform- growth centric approach – Investments in skills and innovation – Strong cash generation – Integrated value proposition – Simpl
Slide 3: IBM Approach for Hybrid Cloud & AI
IBM Approach for Hybrid Cloud & AI STRATEGY Our Platform Approach IBM Consulting Business Transformation System Integrator Partners Secure everywhere Technology Consulting Application Operations IBM Software Automation • Data & AI Software and SaaS Partners IBM Cloud Paks Security • Transaction Proc
Slide 4: Improved Portfolio Mix and Growth Profile
Improved Portfolio Mix and Growth Profile STRATEGY 2022 Revenue Mix Financing 1% – Executed divestitures Over 70% of our of non-core assets and revenue now Infrastructure separation of Kyndryl* 25% comes from Software – Organic investments in higher-growth 42% >70% technology and talent, software an
Slide 5: 2022 Performance Highlights
2022 Performance Highlights STRATEGY Our model Our results – Sustainable revenue growth – Delivered $60.5B of revenue with broad-based growth, up 6% (12% at constant currency), including ~4 points from Kyndryl – Strong cash generation – A solid and growing recurring revenue base represents over 50%
Slide 6: Reinforcing IBM's Shareholder Commitments
Reinforcing IBM’s Shareholder Commitments COMPENSATION IBM’s compensation practices align with IBM’s growth strategy and investor expectations: 1. Accelerate our Hybrid Cloud and AI revenue growth strategy 2. Generate cash flow growth for increased investment and shareholder return IBM’s Compensatio
Slide 7: Compensation Aligns with High-Value Business Model
Compensation Aligns with High-Value Business Model COMPENSATION For 2022, at target, 77%, or $14M of CEO pay was at risk Payouts in both the annual and long-term and subject to attainment of rigorous performance goals programs reflect rigorous performance goals CEO ANNUAL INCENTIVE AWARD AS % OF TAR
Slide 8: Building the Right Board
Building the Right Board BOARD & GOVERNANCE Active Board Refreshment Optimal Mix of Skills and Experience 2019 2020 2021 IBM’s directors collaboratively contribute significant experience in the areas most relevant to overseeing the Company’s business and strategy. MICHELLE F. WILLIAM MARTHA THOMAS A
Slide 9: Board of Directors
Board of Directors BOARD & GOVERNANCE DIRECTOR Thomas David N. Alex Michelle J. Arvind Andrew N. F. William Martha E. Joseph R. Peter R. Frederick H. Alfred W. Buberl Farr Gorsky Howard Krishna Liveris McNabb III Pollack Swedish Voser Waddell Zollar Client Industry Expertise Organizational Leadershi
Slide 10: IBM Impact
ENVIRONMENTAL, SOCIAL IBM Impact & GOVERNANCE Ethical Impact Equitable Impact Environmental Impact We aspire to • For the fifth year in a row, IBM has • Collaborated with over 20 • Reduced operational make a lasting, been named one of the World’s Most HBCUs on IBM Cybersecurity greenhouse gas emissi
Slide 11: Voting Item 5: Independent Board Chair; Voting Item 6: Public Report on Lobbying Activities
PROPOSALS Voting Item 5: Voting Item 6: Independent Board Chair Public Report on Lobbying Activities The Board recommends a vote AGAINST The Board recommends a vote AGAINST – IBM’s Lead Director role is robust and ensures effective – Independent third parties consistently recognize IBM as independen
Slide 12: Voting Item 7: China Business Operations and ESG; Voting Item 8: Harassment and Discrimination
PROPOSALS Voting Item 7: Voting Item 8: Public Report on Congruency of China Public Report on Harassment and Business Operations and ESG Activities Discrimination Prevention Efforts The Board recommends a vote AGAINST The Board recommends a vote AGAINST – IBM adheres to the law across all of the cou
Slide 13: We Request Your Support at the 2023 Annual Meeting of Stockholders
We Request Your Support at the PROPOSALS 2023 Annual Meeting of Stockholders The Board asks that you vote: FOR Election of all Twelve Director Nominees FOR Ratification of PricewaterhouseCoopers LLP as IBM’s Independent Registered Public Accounting Firm FOR Advisory Vote on Executive Compensat
Slide 14: © 2023 IBM Corporation
© 2023 IBM Corporation
Slide 15: Forward-Looking Statements, Non-GAAP and Other Information
Forward-Looking Statements, Non-GAAP and Other Information Certain comments made in this presentation may be characterized as forward looking under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company’s current assumptions regarding future busines