Generating Higher
Value at IBM


Each year IBM describes how the company manages its business and serves its shareholders. A long-term perspective ensures IBM is well positioned to take advantage of major shifts occurring in technology, business and the global economy.

1. We continuously remix our business toward higher-value, more profitable markets and opportunities.

Operating Pre-tax Income Margin was 10% in 2000 and is now 21% in 2013., $1.7 Billion - Hardware & Financing PTI, $10.2 Billion - Services PTI, $11.1Billion - Software PTI, *Sum of Segment Operating PTI does not equal IBM PTI

2. This generates significant profit and cash, which allows us to invest in future sources of growth and provide strong returns to shareholders.

$165 Billion in Free Cash Flow since 2000
Primary Uses of Cash Since 2000: $108 Billion in Net share repurchases, $30 Billion in Dividends, $32 Billion in Net acquisitions, $59 Billion in Net capital expenditures. Which totals $170 Billion in Cash since 2000

3. We deliver long-term value and performance while achieving our 2015 operating EPS target along the way.

$16.28 Operating Earnings Per Share in 2013. At least $20 Operating Earnings Per Share in 2015

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Generating Higher Value at IBM includes selected references to certain non-GAAP financial measures that are made to facilitate a comparative view of the company’s ongoing operational performance. For information about the company’s financial results related to (i) operating pre-tax margin and operating earnings per share and (ii) free cash flow, which are in each case non-GAAP measures, see the company’s Forms 8-K submitted to the SEC on January 21, 2014 and February 28, 2013 (Attachment II—Non-GAAP Supplementary Materials).