Kyndryl : Third Quarter 2023 Earnings Presentation

Fiscal Third Quarter 2023 Earnings

February 8, 2023

Disclaimers

Forward-looking statements

This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements often contain words such as "will," "anticipate," "predict," "project," "plan," "forecast," "estimate," "expect," "intend," "target," "may," "should," "would," "could," "outlook" and other similar words or expressions or the negative thereof or other variations thereon. All statements, other than statements of historical fact, including without limitation statements representing management's beliefs about future events, transactions, strategies, operations and financial results, may be forward-looking statements. These statements do not guarantee future performance and speak only as of February 8, 2023, and the Company does not undertake to update its forward-looking statements. Actual outcomes or results may differ materially from those suggested by forward- looking statements as a result of risks and uncertainties which include, among others: risks related to the Company's spin-off from International Business Machines Corporation ("IBM"); failure to attract new customers, retain existing customers or sell additional services to customers; technological developments and the Company's response to such developments; failure to meet growth and productivity objectives; competition; impacts of relationships with critical suppliers; inability to attract and retain key personnel and other skilled employees; impact of local legal, economic, political, health and other conditions, including the COVID-19 pandemic; a downturn in economic environment and customer spending budgets; damage to the Company's reputation; inability to accurately estimate the cost of services and the timeline for completion of contracts; service delivery issues; the Company's ability to successfully manage acquisitions, alliances and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities, and higher debt levels; the impact of our business with government customers; failure of the Company's intellectual property rights to prevent competitive offerings and the failure of the company to obtain necessary licenses; risks relating to cybersecurity and data privacy; adverse effects from tax matters and environmental matters; legal proceedings and investigatory risks; impact of changes in market liquidity conditions and customer credit risk on receivables; the Company's pension plans; the impact of foreign currency fluctuations; risks related to the Company's common stock and the securities market; and other factors described in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the Securities and Exchange Commission (the "SEC") on March 10, 2022, as such factors may be updated from time to time in the Company's periodic filings with the SEC.

Pro forma financial information

This presentation also includes certain pro forma financial information. The pro forma adjustments assume that the Company's spin-off from IBM and related transactions occurred as of January 1, 2020. The pro forma financial information is unaudited and is presented for illustrative purposes only and is not necessarily indicative of the operating results or financial position that would have occurred if the relevant transactions had been consummated on the date indicated, nor is it indicative of future operating results. The pro forma financial information presented includes adjustments that would not be included in the pro forma financial statements contained in a registration statement filed with the SEC that contain pro forma information prepared in accordance with Regulation S-X under the Securities Act.

Non-GAAP financial measures

Financial information contained in this presentation includes certain financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting policies in the United States of America (GAAP), such as adjusted EBITDA, adjusted pretax income, adjusted EBITDA margin, adjusted pretax margin, adjusted free cash flow, constant currency, pro forma adjusted pretax income, pro forma adjusted EBITDA, pro forma adjusted EBITDA margin and pro forma adjusted pretax margin, which include or exclude certain items from the most directly comparable GAAP financial measure. These non-GAAP measures differ from reported GAAP measures and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors as an additional tool for further understanding and assessing Kyndryl's expected ongoing operating performance. Exclusion of items in our non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non- recurring. Definitions of the non-GAAP measures are included in the appendix of this presentation. A reconciliation of non-GAAP financial measures for historical periods to the most directly comparable GAAP financial measure appears in the appendix to this presentation. Any non-GAAP financial measure used in this presentation is in addition to, and not meant to be considered superior to, or a substitute for, measures prepared in accordance with GAAP. A reconciliation of forward-lookingnon-GAAP financial information is not included in this presentation because the individual components of such non-GAAP reconciliation are not currently available without unreasonable effort. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results. Additionally, certain amounts may not add due to the use of rounded numbers; percentages presented are calculated based on the underlying amounts.

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Martin Schroeter

Chairman and Chief Executive Officer

Key highlights

Performance	Looking ahead	Future objectives
Quarterly results	Raising revenue outlook	On track toward our
demonstrate progress	for fiscal year 2023*	medium-term goals

Alliances	Advanced Delivery	Accounts
Partnerships creating	Quality, cost benefiting	Enhancing existing
new business	from incremental	relationships
opportunities	automation

* Fiscal year 2023 is the twelve months beginning April 1, 2022 and ending March 31, 2023

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Building on our position as the world's leading IT infrastructure services provider

Mission-critical services

World's largest IT infrastructure services provider

30+ years mission-critical systems experience

Operations in 63 countries on six continents

Industry-leadingknow-how,scale and capabilities

Solid financial footing to execute our strategy

Diversified sources

of revenue

Communications
Technology	8%	Financial
9%		Services
Public 11%	Revenue	46%
mix by

industry

12%

Industrials

14%

Retail, travel and other

Transforming our business mix

through our six practices

Practice	Revenue	Signings
Cloud	33%	35%
Security &	13%	14%
Resiliency
Network & Edge	8%	9%
Applications,	4%	7%
Data & AI
Digital Workplace	8%	9%
Core Enterprise	33%	27%
& zCloud
Total	100%	100%

We design, build, manage and modernize the mission-critical systems that the world depends on

Signings and approximate revenue based on twelve months ended December 31, 2022	5
Industry revenue mix is approximate