Financial Analysts Webcast

www.ibm.com/responsibility/2014

September 15, 2015

IBM 2014 Corporate Responsibility Report

Forward-Looking Statement Certain comments made during this event and in the presentation materials 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. These statements by their nature address matters that are uncertain to different degrees. Any forward-looking statement made during this event or in these presentation materials speaks only as of the date on which it is made. The company assumes no obligation to update or revise any forward-looking statements. Those statements involve a number of factors that could cause actual results to differ materially, including the following: a downturn in economic environment and client spending budgets; the company’s failure to meet growth and productivity objectives, a failure of the company’s innovation initiatives; risks from investing in growth opportunities; a failure of the company’s intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; cybersecurity and privacy considerations; fluctuations in financial results, impact of local legal, economic, political and health conditions; adverse effects from environmental matters, tax matters and the company’s pension plans; ineffective internal controls; the company’s use of accounting estimates; the company’s ability to attract and retain skilled personnel and its reliance on critical skills; impacts of relationships with critical suppliers and business with government clients; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; reliance on third party distribution channels; the company’s ability to successfully manage acquisitions, alliances and dispositions; risks from legal proceedings; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company’s Form 10-Qs, Form 10-K and in the company’s other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. 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.

Agenda

!  Introduction of Panelists

!  Overview by Stanley Litow

!  Question & Answer Session

3

Panelists

!  Stanley S. Litow, Vice President, Corporate Citizenship & Corporate Affairs and President, IBM Foundation

!  Wayne Balta, Vice President, Environmental Affairs and Product Safety

!  Christina Montgomery, Vice President, Assistant General Counsel & Secretary

!  Christopher Padilla, Vice President, Government and Regulatory Affairs

!  Dan Carrell, Vice President, Global Procurement

!  Alan Wild, Vice President Human Resources; Employee Relations and Engagement

4

IBM 2014 Corporate Responsibility Report Highlights

•  Communities

•  Employees

•  Environment

•  Supply Chain

•  Public Policy

Transforming business, technology and society Purpose-driven transformation, innovation and reinvention are key components of IBM’s approach to citizenship.

6

IBM operates in more than 175 countries

Communities

!  Transforming Education –  P-TECH 9-14 school model –  Codename: Watson Teacher

Advisor –  Teachers TryScience –  University Relations

!  Employee Engagement –  On Demand Community –  Employee donations and programs

!  Problem Solving in Communities –  Corporate Service Corps –  Smarter Cities Challenge –  Impact Grants –  World Community Grid

!  Disaster Response –  Ebola –  Typhoon Haiyan

7

In 2014, IBM expanded and deepened efforts to help governments, nonprofits, educators and communities transform themselves by helping solve their toughest challenges.

Employees

!  Supporting IBMers –  Watson Ambassadors, Think 40,

social business

!  Employee Well-Being –  A culture of health –  Value through innovation and

social tools

!  Employee Inclusion –  LGBT workplace equality

!  Leadership Development –  Signature experiences and new

programmes –  Faculty Academy & Manager journey

!  Opportunities to gain global experience; Corporate Service Corp

!  Supporting employee volunteerism

8

IBM continues to invest in our workforce

Environment

!  Global Environmental Management System

!  Energy conservation and efficiency –  In 2014, IBM’s energy conservation

projects globally delivered savings equal to 6.7% of its total energy use vs goal of 3.5%.

–  45 data centers in 19 countries awarded Participant status – EU Code of Conduct for Energy Efficiency in Data Centres.

!  Product & process environmental stewardship

!  Management of end-of-life electronic equipment

!  Climate Protection –  In 2014, IBM procured 14.2% of its electricity

consumption from renewable sources – Set 2 new goals: !  Procure electricity from renewable sources

for 20% of IBM's annual electricity consumption by 2020.

!  Reduce CO2 emissions associated with IBM's energy consumption 35% by YE 2020 against base year 2005 adjusted for acquisitions and divestitures.

!  Environmental requirements in the supply chain

!  Solutions for environmental sustainability 9

Innovating to avoid or reduce environmental impacts and enable greater environmental sustainability

Supply Chain

! Commitment to continuous improvement through supplier engagement

!  Industry collaboration via the Electronic Industry Citizenship Coalition (EICC) across multiple topics

! Forty six years of Diverse Supplier development

! EICC Code of Conduct is an integral part of Procurement strategy

– Social responsibility: Labor, Health & Safety, Environmental, Ethics, and Management Systems

– Robust supplier audit program

! Conflict Minerals program deployed following electronic industry standard practices

10

Commitment to collaboration in the global IT supply chain:

Public Policy

•  Workforce flexibility

•  Finance, taxation, and corporate governance

•  Technology policy

•  Trade facilitation

•  Market support

•  Compliance

11

IBM collaborates with lawmakers, regulators, public officials, and civic leaders around the world. 2014 priorities were:

Q&A Session – Panelists

!  Stanley S. Litow, Vice President, Corporate Citizenship & Corporate Affairs and President, IBM Foundation

!  Wayne Balta, Vice President, Environmental Affairs and Product Safety

!  Christina Montgomery, Vice President, Assistant General Counsel & Secretary

!  Christopher Padilla, Vice President, Government and Regulatory Affairs

!  Dan Carrell, Vice President, Global Procurement

!  Alan Wild, Vice President Human Resources; Employee Relations and Engagement

12

www.ibm.com/responsibility/2014

IBM 2014 Corporate Responsibility Report