International Business Machines : Charts (317 KB) pdf

IBM

4Q 2021 Earnings

January 24, 2022 ibm.com/investor

Forward Looking Statements and Non-GAAP Information

Certain comments made in this presentation maybe characterizedas forward lookingunder the PrivateSecurities Litigation Reform Act of 1995. Forward-lookingstatements are based on the company's current assumptions regarding future business and financial performance.Those statements bytheir nature address matters that are uncertain to different degrees. Those statements involve a number of factors that couldcause actual results to differ materially. Additionalinformation concerning these factors is contained in the Company's filings with the SEC. Copies are available from the SEC,from the IBM website, or from IBM Investor Relations. Anyforward-looking statement made during this presentation speaks onlyas of the date on which it is made. The companyassumes no obligation to update or revise anyforward-looking statements exceptas required bylaw; these charts and the associatedremarks and comments are integrallyrelatedand are intended to be presented and understoodtogether.

Unless otherwise specified, results are presentedon a continuing operation basis.

In an effort toprovide additional and useful information regarding the company's financial results and other financial information as determined bygenerallyaccepted accounting principles (GAAP), the companyalso discusses, in its earnings

press release and presentation materials,certain non-GAAP information including operating earnings and other "operating" financial measures, consolidatedfree cash flow, including post-separation baseline free cash flow, net cash from operating activities excluding IBM Financing receivables, and adjustments for currency. The rationale for management's use of this non-GAAP information is included as Exhibit 99.2 to the company's Form 8-K submitted to the SEC on January24, 2022. The reconciliation of non-GAAP information to GAAP is included on the slides entitled "Non-GAAP SupplementalMaterials" in this presentation, as well as in Exhibit 99.1 to the company's Form 8-K submittedto the SEC on January24, 2022.

To provide bettertransparency,the companyalso discusses management performance metrics including hybridcloudrevenue, annual recurring revenue, signings, and book-to-bill. The metrics are used to monitor the performance of the business and are viewed as useful decision-making information for management and stakeholders.The rationale for management's use of these performance metrics and their calculation are included in Exhibit

99.2 to the company's Form 8-K furnished with the SEC on January

24, 2022. For other relatedinformation please visit the Company's investor relations website at:

https://www.ibm.com/investor/events/earnings-4q21

2

Arvind Krishna

Chairman and Chief Executive Officer

James Kavanaugh

SVP, Finance & Operations,

Chief Financial Officer

3

CEO Perspective

"We increased revenue in the fourth quarter with hybrid cloud adoption driving growth in software and consulting.

Our fourth-quarter results give us confidence in our ability to deliver our objectives of sustained mid-single digit revenue growth and strong free cash flow in 2022."

• Arvind Krishna, IBM Chairman and CEO

4Q21 Performance

Hybrid Cloud and AI Progress

Clients, Ecosystems and Innovation

4

Hybrid Cloud & AI Progress

Our Platform Approach

IBM Consulting		SystemIntegrator
		Partners
IBM Software		Software and
		SaaS Partners
Red Hat HybridCloud Platform

IBM Infrastructure		Public Clouds		Enterprise		Edge
				Infrastructure

Accelerating client adoption of hybrid cloud & AI

Leveraging partner ecosystem

Delivering innovation and enhancing portfolio

5