International Business Machines : IBM 2Q 2022 Earnings Presentation

IBM

2Q 2022 Earnings

July 18, 2022 ibm.com/investor

Forward-looking statements and non-GAAP 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 business and financial performance. Those statements by their nature address matters that are uncertain to different degrees. Those statements involve a number of factors that could cause actual results to differ materially. Additional information 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. Any forward-looking statement made during this presentation speaks only as of the date on which it is made. The company assumes no obligation to update or revise any forward-looking statements except as required by law; these charts and the associated remarks and comments are integrally related and are intended to be presented and understood together.

Unless otherwise specified, results are presented on a continuing operations basis. All references to revenue impacts from sales to Kyndryl are incremental sales post-separation.

In an effort to provide additional and useful information regarding the company's financial results and other financial information as determined by generally accepted accounting principles (GAAP), the company also discusses, in its earnings press release and presentation materials, certain non-GAAP information

including operating earnings and other "operating" financial measures, consolidated 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 July 18, 2022. The reconciliation of non-GAAP information to GAAP is included on the slides entitled "Non-GAAP supplemental materials" in this presentation, as well as in Exhibit 99.1 to the company's Form 8-K submitted to the SEC on July 18, 2022.

To provide better transparency, the company also discusses management performance metrics including hybrid cloud revenue, 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 the Management Discussion section of the company's 2021 Annual Report, which is Exhibit 13 to the Form 10-K submitted with the SEC on February 22, 2022. For other related information please visit the Company's investor relations website at:

https://www.ibm.com/investor/events/earnings-2q22

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Arvind Krishna	James Kavanaugh
Chairman and	SVP, Finance & Operations,
Chief Executive Officer	Chief Financial Officer

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CEO perspective

"In the quarter we delivered good revenue performance with balanced growth across our geographies, driven by client demand for our hybrid cloud and AI offerings. The IBM team executed our strategy well.

With our first half results, we continue to expect full-year revenue growth at the high end of our mid-single digit model."

Arvind Krishna

IBM Chairman and CEO

2Q22 Performance

Hybrid cloud and

AI progress

Clients, ecosystem and innovation

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Hybrid cloud and AI progress

Our platform approach

IBM Consulting	Business Transformation	System Integrator Partners
	Technology Consulting
	Application Operations

IBM Software	Automation	Software and SaaS Partners
IBM Cloud Paks	Data & AI
	Security
	Transaction Processing
Red Hat Hybrid Cloud Platform	Development, Security and Operational Services
		OpenShift
		Red Hat Enterprise Linux
		Ansible Automation Platform

IBM Infrastructure	Public Clouds	Enterprise	Edge
zSystems	AWS	Infrastructure
Distributed Infrastructure (IBM Cloud, Power,	Azure
Storage)	Others
Infrastructure Support

Accelerating client adoption

Expanding partner ecosystem

Delivering innovation

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