3Q'15 Highlights*: Continued strength in strategic imperative, YTD revenue up over 30% Yr/Yr - Cloud revenue was $9.4B over the last twelve months and exited the 3Q with an annual as-a-Service run rate of $4.5B - Analytics was up nearly 20% year to dateExpanded gross and net operating marginsInvesting and adding capabilitiesNow expect 2015 Operating EPS of $14.75 to $15.75 and still expect FCF to be roughly flat compared to prior year* All revenue growth @cc and adjusted for divested businesses

($ in Billions, except per share amounts) ($ in Billions)

P&L Highlights FY B/(W) 3Q YTD B/(W) Dec Sep(From Continuing Operations) 2014 Yr/Yr 2015 Yr/Yr Balance Sheet 2014 2015

Revenue $92.8 (1%)* $59.7 (1%)* Assets Cash & Marketable Securities $8.5 $9.6 Global Financing Assets $37.3 $31.5

Pre-Tax Income - Operating $21.1 (4%) $12.2 (11%) Non-Global Financing Assets* $71.7 $67.5$117.5 $108.6

Net Income - Operating $16.7 (9%) $10.0 (9%) Liabilities Global Financing Debt $29.1 $26.0

EPS (Diluted) - Operating $16.53 (1%) $10.09 (6%) Non-Global Financing Debt* $11.7 $13.7 Other Liabilities $64.7 $55.5

$105.5 $95.2

Free Cash Flow** $12.4 (18%) $7.0 21% Equity $12.0 $13.5

* @ constant currency & excluding divestited businesses * Includes eliminations of inter-company activity** Net Cash from Ops excl GF Receivables, less Capital Expenditures

Key P&L Metrics - Operating FY B/(W) 3Q YTD B/(W) Dec Sep(From Continuing Operations) 2014 Yr/Yr 2015 Yr/Yr Key Metrics 2014 2015

Gross Profit Margin 50.5% 1.0 pts 50.1% 0.6 pts Non GF Debt/Cap 59.4% 58.4% Expense / Revenue % * 28.1% (1.7 pts) 29.7% (0.2 pts) Global Financing Leverage 7.2 7.0 Pre-Tax Income Margin 22.5% (0.7 pts) 20.4% 0.4 pts Dividend Yield 2.9% 3.7% Tax Rate 17.0% 7.4 pts 18.3% 2.3 pts Credit Rating (Moody's, S&P)* Aa3, AA- Aa3, AA- Net Income Margin 18.7% 1.1 pts 16.7% 0.8 pts

* Total Operating Expense & Other Income / Revenue * Credit ratings are not recommendations to purchase, hold, or sell any IBM securities or to make any investment decisions

* From Continuing Operations

* Served market growth source: IBM Market Insights; * Consistent with basis presented at May 2014 Investor Briefing, 2014 performance modeled onHistorical Strategic Imperative Revenue measured on consistent basis; “Gross View” (inclusive of overlap with Strategic Imperatives), Recurring Core Franchises revenue Growth rates reflect constant/modeled currency excluding System x growth modeled net of Strategic Imperativesexcluding System x

2014

In an effort to provide additional and useful information regarding the company’s results as determined by generally accepted accounting principles (GAAP), these materials contain certain non-GAAP financial measures on a continuing operations basis. For reconciliation to GAAP and other information about FY 2014 and 3Q YTD 2015 revenue excluding divestitures and currency, operating gross profit margin, operating pre-tax income and margin, operating expense and other income, operating tax rate, operating net income and margin, operating earnings per share, free cash flow and the December 2014 and September 2015 non GF debt-to-capital ratio, see Non-GAAP Supplemental Materials and related information in the Forms 8-K submitted to the SEC on January 20, 2015, April 20, 2015 and October 19, 2015. For reconciliation to GAAP and other information about 2010-2014 strategic imperatives revenue growth at constant currency, see Non-GAAP Supplemental Materials and related information in the Form 8-K submitted to the SEC on February 26, 2015.

2014 Portfolio Revenue SummaryRevenue MixIBM/ Market Revenue Growth*

IBM Corporation Financial Profile

Pre-Tax (Operating) Profit by Business Segment2014*

Revenue by Geography (excludes OEM)

Strategic ImperativeStrategic ImperativeStrategic Imperative

Revenue by Business Segment2014*

13%

28% 59%

Services Software

Systems & Financing

33%

22%

34%

11%

U.S.

Can/ LA

EMEA

10%

48%

42%

Services

Software

Systems & Financing

Oct, 2015

Asia Pacific