New York

1-2360

13-0871985

(State of Incorporation)

(Commission File Number)

(IRS employer Identification No.)

ARMONK, NEW YORK

10504

(Address of principal executive offices)

(Zip Code)

1Q 2015 Earnings Presentation April 20, 2015

2 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 web site, 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. These charts and the associated remarks and comments are integrally related, and are intended to be presented and understood together. 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 earnings presentation materials, certain non-GAAP information including "operating earnings" and other "operating" financial measures. The rationale for management’s use of this non-GAAP information, the reconciliation of that information to GAAP, and other related information are included in supplemental materials entitled “Non-GAAP Supplemental Materials” that are posted on the Company’s investor relations web site at http://www.ibm.com/investor/events/earnings/1q15.html The Non-GAAP Supplemental Materials are also included as Attachment II to the Company’s Form 8-K dated April 20, 2015.

3 1Q15 Summary 1Q15 Yr/Yr Revenue ($B) $19.6 0%* Yr/Yr As Reported (12%) Operating (Non-GAAP) EPS $2.91 9% Revenue performance improved to flat yr/yr Strategic imperatives growth accelerated to >30% yr/yr Core portfolio performance consistent with second half of 2014 Systems Hardware driven by strong System z and return to growth in Power Margin expansion reflects ongoing shift to higher value Shifting investments and resources to address long-term opportunities * Revenue growth rate @CC and excluding divested businesses

4 Key Financial Metrics P&L Ratios (Operating) 1Q15 B/(W) Yr/Yr GP Margin 49.3% 0.8 pts PTI Margin 18.4% 2.7 pts Tax Rate 20.0% 0.5 pts NI Margin 14.8% 2.2 pts P&L Highlights 1Q15 Yr/Yr Revenue $19.6 0% PTI – Operating $3.6 3% NI – Operating $2.9 4% EPS – Operating $2.91 9% Cash Highlights 1Q15 Last 12 Mos. Free Cash Flow (excl. GF Receivables) $1.1 $12.8 Share Repurchase (Gross) 1.2 6.7 Dividends 1.1 4.4 Cash Balance @ March 31 8.8 Revenue growth rate @CC and excluding divested businesses $ in Billions, except EPS

Revenue by Geography 1Q15 Yr/Yr Americas $9.3 2% Europe/ME/Africa 6.1 (2%) Asia Pacific 4.1 (2%) IBM $19.6 0% Major Markets 0% Growth Markets (1%) BRIC Countries (3%) $ in Billions AP ex. Japan U.S. +2% EMEA Canada/ LA Japan +4% 5 Revenue growth rates @CC and excluding divested businesses

6 Revenue and Gross Profit Margin by Segment 1Q15 Yr/Yr 1Q15 Yr/Yr Pts Global Technology Services $7.9 (1%) 37.4% (1.4 pts) Global Business Services 4.3 (4%) 27.4% (1.8 pts) Software 5.2 (2%) 86.6% (0.9 pts) Systems Hardware 1.7 30% 44.5% 10.5 pts Global Financing 0.5 (1%) 49.6% 3.5 pts Total Revenue & Op. GP Margin $19.6 0% 49.3% 0.8 pts $ in Billions Operating Gross Profit Margin Revenue Revenue growth rates @CC and excluding divested businesses

7 Expense Summary 1Q15 B/(W) Yr/Yr SG&A – Operating $5.0 18% RD&E – Operating 1.3 9% IP and Development Income (0.2) (17%) Other (Income)/Expense (0.1) 12% Interest Expense 0.1 (3%) Operating Expense & Other Income $6.1 17% $ in Billions Drivers B/(W) Yr/Yr Currency 8 pts System x Divestiture 2 pts Divestiture Gains (1Q14) (1 pts) Workforce Rebalancing 7 pts Operating Expense & Other Income 17%

8 1Q15 Yr/Yr Revenue (External) $7.9 (1%) Gross Margin (External) 37.4% (1.4 pts) PTI Margin 12.3% (1.1 pts) Services Segments Global Technology Services (GTS) Global Business Services (GBS) 1Q15 Revenue (% of Total Services) $ in Billions 1Q15 Yr/Yr Revenue (External) $4.3 (4%) Gross Margin (External) 27.4% (1.8 pts) PTI Margin 13.4% (1.4 pts) $ in Billions GTS 1Q15 Revenue Yr/Yr GTS Outsourcing (2%) Integrated Technology Services (1%) Maintenance 2% GBS 1Q15 Revenue GBS Outsourcing (1%) Consulting & Systems Integration (5%) 1Q15 Backlog $121B 0% GTS Outsourcing 35% GBS C&SI 25% Maint. 13% ITS 17% GBS Outsourcing 10% Revenue and Backlog growth rates @CC and excluding divested businesses

9 Software Segment 1Q15 Yr/Yr Revenue (External) $5.2 (2%) Gross Margin (External) 86.6% (0.9 pts) PTI Margin 31.4% 2.3 pts 1Q15 Revenue Yr/Yr WebSphere 1% Information Management 0% Tivoli 4% Workforce Solutions 10% Rational (10%) Key Branded Middleware 1% Total Middleware (1%) Total Software (2%) 1Q15 Revenue (% of Total Software) Key Branded Middleware 67% Operating Systems 8% Other Middleware 17% Other 8% $ in Billions Revenue growth rates @CC

10 Systems Hardware Segment 1Q15 Yr/Yr Revenue (External) $1.7 30% Gross Margin (External) 44.5% 10.5 pts PTI Margin 1.4% 21.2 pts $ in Billions 1Q15 Revenue (% of Total Sys Hardware) 1Q15 Revenue Yr/Yr System z 130% Power Systems 1% Storage (2%) Total Systems Hardware 30% Other Revenue growth rates @CC and excluding divested business Servers 69% Storage 28%

11 Cash Flow Summary 1Q15 B/(W) Yr/Yr FY14 Net Cash from Operations $3.6 $0.3 $16.9 Less: Global Financing Receivables 1.6 (0.2) 0.7 Net Cash from Operations (excluding GF Receivables) 2.0 0.5 16.2 Net Capital Expenditures (0.9) 0.0 (3.8) Free Cash Flow (excluding GF Receivables) 1.1 0.4 12.4 Acquisitions (0.1) 0.1 (0.7) Divestitures 0.0 (0.4) 2.4 Dividends (1.1) (0.1) (4.3) Share Repurchases (Gross) (1.2) 7.0 (13.7) Non-GF Debt 0.4 (3.3) (1.3) Other (includes GF A/R & GF Debt) 1.3 (2.1) 2.6 Change in Cash & Marketable Securities $0.3 $1.7 ($2.6) $ in Billions

12 Mar. 14 Dec. 14 Mar.15 Cash & Marketable Securities $9.7 $8.5 $8.8 Non-GF Assets* 76.7 71.7 70.8 Global Financing Assets 36.2 37.3 32.5 Total Assets 122.6 117.5 112.0 Other Liabilities 61.9 64.7 60.9 Non-GF Debt* 15.7 11.7 12.6 Global Financing Debt 28.3 29.1 26.2 Total Debt 44.0 40.8 38.8 Total Liabilities 105.9 105.5 99.7 Equity 16.7 12.0 12.3 Non-GF Debt / Capital 55.3% 59.4% 59.6% Global Financing Leverage 7.1 7.2 7.0 Balance Sheet Summary $ in Billions * Includes eliminations of inter-company activity

13 Summary 1Q performance reflects progress in transformation Acceleration in strategic imperatives Strength in high-end systems Margin expansion reflects high-end strength and portfolio actions Shifting investments and resources to address long-term opportunities Maintaining expectations for full year 2015 Operating EPS of $15.75 to $16.50 Free Cash Flow flat yr/yr Exit 2015 as a higher value, higher margin business

14

15 Supplemental Materials Currency – Year/Year Comparison Supplemental Segment Information – Global Services Supplemental Segment Information – Systems Hardware, Software Global Financing Portfolio Cash Flow (FAS 95) Non-GAAP Supplemental Materials Operating (Non-GAAP) Earnings Per Share and Related Income Statement Items, Constant Currency Cash Flow, Debt-to-Capital Ratio, Customer Care Outsourcing and System x Business Divestiture Reconciliation of Operating Earnings Per Share GAAP to Operating (Non-GAAP) Bridge – 1Q 2015 GAAP to Operating (Non-GAAP) Bridge – 1Q 2014 GAAP to Operating (Non-GAAP) Bridge – 1Q 2015 and 1Q 2014 Reconciliation of B/(W) Yr/Yr Expense Drivers – 1Q 2015 Reconciliation of Free Cash Flow (excluding GF Receivables) – 12 months ended 3/31/15 Reconciliation of Debt-to-Capital Ratio Reconciliation of Revenue Growth Reconciliation of Revenue Growth Reconciliation of Revenue Growth Reconciliation of Revenue Growth Some columns and rows in these materials, including the supplemental exhibits, may not add due to rounding Supplemental Materials

16 Currency – Year/Year Comparison 1Q15 Yr/Yr 4/17 Spot 2Q15 3Q15 4Q15 FY15 Euro 0.89 (22%) 0.93 (27%) (23%) (16%) (22%) Pound 0.66 (9%) 0.67 (13%) (12%) (6%) (10%) Yen 119 (16%) 119 (17%) (14%) (4%) (12%) IBM Revenue Impact (8 pts) (9 pts) (8 pts) (5 pts) ~(7 pts) Prior View (Jan. 2015) (6-7 pts) (7 pts) (6 pts) (3 pts) (5-6 pts) (US$B) Yr/Yr $19.6 (12%) (1.7) (8 pts) (4%) Yr/Yr @ 4/17 Spot Quarterly Averages per US $ Revenue As Reported Currency Impact Revenue @CC Supplemental Materials

17 Supplemental Segment Information – 1Q 2015 $ in Billions Backlog 1Q15 Yr/Yr Total Backlog $121 0% Change in Backlog due to Currency Quarter-to-Quarter ($6) Year-to-Year ($17) Outsourcing Backlog $76 2% Signings 1Q15 Yr/Yr @CC Outsourcing - GTS O/S, GBS O/S $5.5 11% Transactional - ITS, Consulting & AMS SI (incl. US Federal) 5.1 (1%) Total Signings $10.7 5% Actual backlog calculated using March 31 currency spot rates Revenue Growth Yr/Yr GTS Outsourcing (2%) Integrated Tech Services (1%) Maintenance 2% Total GTS (1%) GBS Outsourcing (1%) GBS C&SI (5%) Total GBS (4%) Total Outsourcing (2%) Total Transactional (3%) Maintenance 2% Global Services Revenue Global Services Backlog / Signings Supplemental Materials Revenue and Total Backlog growth rates @CC and excluding divested businesses

18 Supplemental Segment Information – 1Q 2015 Revenue Growth Yr/Yr GP% System z 130% Power Systems 1% Storage (2%) Total Sys Hardware* 30% Supplemental Materials Systems Hardware Software Revenue Growth Yr/Yr WebSphere 1% Information Management 0% Tivoli 4% Workforce Solutions 10% Rational (10%) Key Branded Middleware 1% Other Middleware (7%) Total Middleware (1%) Operating Systems (9%) Other Software/Services (6%) Total Software (2%) * Revenue growth rates @CC and excludes divested business

1Q15 4Q14 1Q14 Identified Loss Rate 1.9% 1.6% 1.0% Anticipated Loss Rate 0.4% 0.3% 0.4% Reserve Coverage 2.3% 1.9% 1.4% Client Days Delinquent Outstanding 4.2 4.1 3.6 Commercial A/R > 30 days $93M $26M $36M 19 19 19 Global Financing Portfolio 1Q15 – $25.8B Net External Receivables Non-Investment Grade 44% Investment Grade 56% Supplemental Materials 21% 35% 22% 12% 8% 2% 0% 10% 20% 30% 40% Aaa to A3 Baa1 to Baa3 Ba1 to Ba2 Ba3 to B1 B2 to B3 Caa1 to D

20 Cash Flow (FAS 95) 1Q15 1Q14 Net Income from Operations $2.3 $2.4 Depreciation / Amortization of Intangibles 1.0 1.1 Stock-based Compensation 0.1 0.1 Working Capital / Other (1.4) (2.1) Global Financing A/R 1.6 1.8 Net Cash provided by Operating Activities 3.6 3.3 Capital Expenditures, net of payments & proceeds (0.9) (0.9) Divestitures, net of cash transferred 0.0 0.4 Acquisitions, net of cash acquired (0.1) (0.3) Marketable Securities / Other Investments, net 1.6 0.8 Net Cash used in Investing Activities 0.6 0.0 Debt, net of payments & proceeds (1.3) 4.2 Dividends (1.1) (1.0) Common Stock Repurchases (Gross) (1.2) (8.2) Common Stock Transactions - Other 0.2 0.3 Net Cash used in Financing Activities (3.4) (4.7) Effect of Exchange Rate changes on Cash (0.4) 0.0 Net Change in Cash & Cash Equivalents $0.3 ($1.3) $ in Billions Supplemental Materials

21 21 Non-GAAP Supplemental Materials In an effort to provide investors with additional information regarding the company's results as determined by generally accepted accounting principles (GAAP), the company also discusses, in its earnings press release and earnings presentation materials, the following Non-GAAP information which management believes provides useful information to investors. Operating (Non-GAAP) Earnings Per Share and Related Income Statement Items Management presents certain financial measures from continuing operations excluding the effects of certain acquisition-related charges, non-operating retirement-related costs and any related tax impacts. Management uses the term "operating" to describe this view of the company's financial results and other financial information. For acquisitions, these measures exclude the amortization of purchased intangible assets and acquisition-related charges such as in-process research and development, transaction costs, applicable restructuring and related expenses, and tax charges related to acquisition integration. For retirement-related costs, the company has characterized certain items as operating and others as non-operating. The company includes service cost, amortization of prior service cost and the cost of defined contribution plans in its operating results. Non-operating retirement-related costs include interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan curtailments/settlements, multi-employer plan costs, pension insolvency costs, and other costs. Non-operating costs primarily relate to changes in pension plan assets and liabilities which are tied to market performance, and management considers these costs to be outside the operational performance of the business. Management’s calculation of these operating measures, as presented, may differ from similarly titled measures reported by other companies. Overall, management believes that providing investors with an operating view as described above provides increased transparency and clarity into both the operational results of the business and the performance of the company’s pension plans, improves visibility to management decisions and their impacts on operational performance, enables better comparison to peer companies, and allows the company to provide a long term strategic view of the business going forward. For its earnings per share guidance, the company is utilizing an operating view to establish its objectives and track its progress. The company’s segment financial results and performance reflect operating earnings, consistent with the company’s management and measurement system. Constant Currency Management refers to growth rates at constant currency or adjusting for currency so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of the company's business performance. Financial results adjusted for currency are calculated by translating current period activity in local currency using the comparable prior year period’s currency conversion rate. This approach is used for countries where the functional currency is the local currency. Generally, when the dollar either strengthens or weakens against other currencies, the growth at constant currency rates or adjusting for currency will be higher or lower than growth reported at actual exchange rates. Supplemental Materials

Non-GAAP Supplemental Materials Cash Flow Management uses a free cash flow measure to evaluate the company’s operating results, plan share repurchase levels, evaluate strategic investments and assess the company’s ability and need to incur and service debt. The entire free cash flow amount is not necessarily available for discretionary expenditures. The company defines free cash flow as net cash from operating activities less the change in Global Financing receivables and net capital expenditures, including the investment in software. A key objective of the Global Financing business is to generate strong returns on equity, and increasing receivables is the basis for growth. Accordingly, management considers Global Financing receivables as a profit-generating investment, not as working capital that should be minimized for efficiency. Therefore, management includes presentations of both free cash flow and cash flow from operations that exclude the effect of Global Financing receivables. Debt-to-Capital Ratio Management presents its debt-to-capital ratio excluding the Global Financing business. A financing business is managed on a leveraged basis. The company funds its Global Financing segment using a debt-to-equity ratio target of approximately 7 to 1. Given this significant leverage, the company presents a debt-to-capital ratio which excludes the Global Financing segment debt and equity because the company believes this is more representative of the company’s core business operations. Customer Care Outsourcing and System x Business Divestiture On September 10, 2013, the company announced that it had signed a definitive agreement with SYNNEX for the sale of IBM’s worldwide customer care process outsourcing services business and on January 23, 2014, the company announced that it had signed a definitive agreement with Lenovo for the sale of IBM’s x86 server business. Management presents certain financial results excluding the effects of the customer care process outsourcing services business and/or the x86 server business divestitures. Management believes that presenting financial information without either or both of these items is more representative of operational performance and provides additional insight into, and clarifies the basis for, historical and/or future performance, which may be more useful to investors. Supplemental Materials 22

23 Non-GAAP Supplemental Materials Reconciliation of Operating Earnings Per Share IBM Operating EPS (Non-GAAP) Acquisition-Related Charges * Amortization of Purchased Intangibles Other Acquisition-Related Charges Non-Operating Retirement-Related Items IBM GAAP EPS Adjustments 2015 Expectations $15.75 - $16.50 $14.17 - $14.92 $0.74 $0.72 $0.02 $0.84 The above serves to reconcile the Non-GAAP financial information contained in Full Year 2015 Expectations and “Summary” discussions in the company’s earnings presentation. See Slide 21 of this presentation for additional information on the use of these Non-GAAP financial measures. Supplemental Materials * Includes acquisitions through March 31, 2015 23

24 24 Non-GAAP Supplemental Materials GAAP to Operating (Non-GAAP) Bridge – 1Q 2015 $ in Millions, except EPS GAAP Acquisition-related Adjustments* Retirement-related Adjustments** Operating (Non-GAAP) Gross Profit $9,452 $91 $121 $9,664 SG&A 5,362 (79) (308) 4,975 RD&E 1,298 - (13) 1,285 Other Income & Expense (143) 0 - (143) Total Operating Expense & Other Income 6,451 (79) (321) 6,051 Pre-Tax Income from Continuing Operations 3,001 170 442 3,612 Tax *** 585 28 109 722 Net Income from Continuing Operations 2,415 142 333 2,890 Diluted Earnings Per Share from Continuing Operations $2.44 $0.14 $0.33 $2.91 * Includes amortization of purchased Intangibles, in process R&D, severance cost for acquired employees, vacant space for acquired companies, deal costs and acquisition integration tax charges ** Includes retirement related interest cost, expected return on plan assets, recognized actuarial losses or gains, amortization of transition assets, other settlements, curtailments, multi-employer plans and insolvency insurance ***The tax impact on the Operating (Non-GAAP) Pre-Tax Income from continuing operations is calculated under the same accounting principles applied to the As Reported Pre-Tax Income under ASC 740, which employs an annual effective tax rate method to the results. The above serves to reconcile the Non-GAAP financial information contained in the “1Q15 Summary”, “Key Financial Metrics ” and “Expense Summary” discussions in the company’s earnings presentation. See Slide 21 of this presentation for additional information on the use of these Non-GAAP financial measures. Supplemental Materials

25 25 Non-GAAP Supplemental Materials GAAP to Operating (Non-GAAP) Bridge – 1Q 2014 $ in Millions, except EPS GAAP Acquisition-related Adjustments* Retirement-related Adjustments** Operating (Non-GAAP) Gross Profit $10,627 $104 $52 $10,783 SG&A 6,272 (97) (87) 6,087 RD&E 1,402 - 17 1,419 Other Income & Expense (127) 0 - (128) Total Operating Expense & Other Income 7,444 (98) (70) 7,276 Pre-Tax Income from Continuing Operations 3,183 201 123 3,507 Tax *** 653 40 25 717 Net Income from Continuing Operations 2,530 161 98 2,790 Diluted Earnings Per Share from Continuing Operations $2.43 $0.16 $0.09 $2.68 * Includes amortization of purchased Intangibles, in process R&D, severance cost for acquired employees, vacant space for acquired companies, deal costs and acquisition integration tax charges. ** Includes retirement related interest cost, expected return on plan assets, recognized actuarial losses or gains, amortization of transition assets, other settlements, curtailments, multi-employer plans and insolvency insurance. ***The tax impact on the Operating (Non-GAAP) Pre-Tax Income from continuing operations is calculated under the same accounting principles applied to the As Reported Pre-Tax Income under ASC 740, which employs an annual effective tax rate method to the results. The above serves to reconcile the Non-GAAP financial information contained in the “1Q15 Summary”, “Key Financial Metrics” and “Expense Summary” discussions in the company’s earnings presentation. See Slide 21 of this presentation for additional information on the use of these Non-GAAP financial measures. Supplemental Materials

26 26 1Q 2015 GAAP Acquisition- related Adjustments* Retirement-related Adjustments ** Operating (Non-GAAP) Gross Profit Margin from Continuing Operations 48.2% 0.5 pts 0.6 pts 49.3% PTI Margin from Continuing Operations 15.3% 0.9 pts 2.3 pts 18.4% Tax Rate *** 19.5% (0.2 pts) 0.7 pts 20.0% Net Income Margin from Continuing Operations 12.3% 0.7 pts 1.7 pts 14.8% 1Q 2014 Gross Profit Margin from Continuing Operations 47.8% 0.5 pts 0.2 pts 48.5% PTI Margin from Continuing Operations 14.3% 0.9 pts 0.6 pts 15.8% Tax Rate *** 20.5% 0.0 pts 0.0 pts 20.5% Net Income Margin from Continuing Operations 11.4% 0.7 pts 0.4 pts 12.5% * Includes amortization of purchased Intangibles, in process R&D, severance cost for acquired employees, vacant space for acquired companies, deal costs and acquisition integration tax charges ** Includes retirement related interest cost, expected return on plan assets, recognized actuarial losses or gains, amortization of transition assets, other settlements, curtailments, multi-employer plans and insolvency insurance ***The tax impact on the Operating (Non-GAAP) Pre-Tax Income from continuing operations is calculated under the same accounting principles applied to the As Reported Pre-Tax Income under ASC 740, which employs an annual effective tax rate method to the results. The above serves to reconcile the Non-GAAP financial information contained in the ”Key Financial Metrics” and “Revenue and Gross Profit Margin by Segment” discussions in the company’s earnings presentation. See Slide 21 of this presentation for additional information on the use of these Non-GAAP financial measures. Non-GAAP Supplemental Materials GAAP to Operating (Non-GAAP) Bridge – 1Q 2015 and 1Q 2014 Supplemental Materials

27 27 GAAP Non-GAAP Adjustments Operating (Non-GAAP) Operating Expense & Other Income Currency 9 pts (1 pts) 8 pts System x Divestiture 2 pts 0 pts 2 pts Divestiture Gains (1Q14) (1 pts) 0 pts (1 pts) Workforce Rebalancing 7 pts 0 pts 7 pts Non-GAAP Supplemental Materials The above serves to reconcile the Non-GAAP financial information contained in the “Expense Summary” discussions in the company’s earnings presentation. See Slides 21-22 of this presentation for additional information on the use of these Non-GAAP financial measures. Supplemental Materials Reconciliation of B/(W) Yr/Yr Expense Drivers – 1Q 2015

28 Non-GAAP Supplemental Materials 12 months ended 3/31/15 Net Cash from Operations $17.2 Less: Global Financing Receivables 0.5 Net Cash from Operations (excluding GF Receivables) 16.6 Net Capital Expenditures (3.8) Free Cash Flow (excluding GF Receivables) $12.8 $ in Billions Reconciliation of Free Cash Flow (excluding GF Receivables) The above serves to reconcile the Non-GAAP financial information contained in the “Key Financial Metrics” discussions in the company’s earnings presentation. See Slide 22 of this presentation for additional information on the use of these Non-GAAP financial measures. Supplemental Materials 28

29 29 Reconciliation of Debt-to-Capital Ratio March 2015 Dec. 2014 March 2014 Non-Global Financing Debt / Capital IBM Consolidated Debt / Capital 59.6% 76.0% 59.4% 77.3% 55.3% 72.4% The above serves to reconcile the Non-GAAP financial information contained in the “Balance Sheet Summary” discussions in the company’s earnings presentation. See Slide 22 of this presentation for additional information on the use of these Non-GAAP financial measures. Non-GAAP Supplemental Materials Supplemental Materials

30 30 Non-GAAP Supplemental Materials IBM GAAP (4%) At Constant Currency (4%) At Constant Currency excl. Divested Businesses (2%) GAAP (12%) At Constant Currency (8%) At Constant Currency excl. Divested Businesses (2%) Reconciliation of Revenue Growth 4Q14 Yr/Yr The above serves to reconcile the Non-GAAP financial information contained in the “Key Financial Metrics” discussions in the company’s earnings presentation. See Slides 21-22 of this presentation for additional information on the use of these Non-GAAP financial measures. Supplemental Materials 3Q14 Yr/Yr

31 31 Non-GAAP Supplemental Materials Americas U.S. Europe/ME/A Asia Pacific Japan Major Markets Growth Markets BRIC Countries GAAP (3%) (1%) (19%) (18%) (13%) (11%) (16%) (21%) At Constant Currency 0% (1%) (5%) (10%) 1% (3%) (10%) (16%) At Constant Currency excl. Divested Businesses 2% 2% (2%) (2%) 4% 0% (1%) (3%) Reconciliation of Revenue Growth 1Q15 Yr/Yr The above serves to reconcile the Non-GAAP financial information contained in the “Revenue by Geography” discussions in the company’s earnings presentation. See Slides 21-22 of this presentation for additional information on the use of these Non-GAAP financial measures. Supplemental Materials

32 32 Non-GAAP Supplemental Materials Global Services Global Technology Services (GTS) Global Business Services (GBS) GTS Outsourcing Integrated Technology Services Maintenance GBS Outsourcing Consulting & Systems Integration Total Outsourcing Total Transactional GAAP (12%) (11%) (13%) (12%) (9%) (10%) (13%) (13%) (12%) (12%) At Constant Currency (3%) (2%) (5%) (2%) (1%) (2%) (6%) (5%) (3%) (3%) At Constant Currency excl. Divested Businesses (2%) (1%) (4%) (2%) (1%) 2% (1%) (5%) (2%) (3%) Reconciliation of Revenue Growth 1Q15 Yr/Yr The above serves to reconcile the Non-GAAP financial information contained in the “Revenue and Gross Profit Margin by Segment” , “Services Segment” and “Supplemental Segment Information-1Q 2015” discussions in the company’s earnings presentation. See Slides 21-22 of this presentation for additional information on the use of these Non-GAAP financial measures. Supplemental Materials

33 33 Non-GAAP Supplemental Materials WebSphere Information Management Tivoli Workforce Solutions Rational Total Middleware Other Middleware Other Software/Services GAAP (4%) (6%) (3%) 1% (16%) (7%) (14%) (12%) At Constant Currency 1% 0% 4% 10% (10%) (1%) (7%) (6%) Reconciliation of Revenue Growth 1Q15 Yr/Yr Supplemental Materials 1Q15 Yr/Yr Systems Hardware Segment GAAP (23%) At Constant Currency (18%) At Constant Currency excl. Divested Businesses 30% The above serves to reconcile the Non-GAAP financial information contained in the “Revenue and Gross Profit Margin by Segment”, “Software Segment”, “Systems Hardware Segment” and “Supplemental Segment Information-1Q 2015” discussions in the company’s earnings presentation. See Slides 21-22 of this presentation for additional information on the use of these Non-GAAP financial measures.

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