****This presentation contains speaking notes and infographics which can be used as stand-alone assets (pages 10, 35,

40)

IBM Growth Markets

External Presentation
GMU External Relations
April 2012

2012 IBM Corporation

Overview of contents
IBMs growth markets focus
+ Market drivers
+ Opportunity
+ Structure & investment
IBM Growth Markets strategy
+ Market Expansion
+ IT Infrastructure development
+ Industry leadership
Smarter Planet
+ Smarter Cities

Generating value
+ Business model
+ Corporate responsibility
+ GMU facts

Over the past decade, IBM has sustained

leadership by pursuing the most transformational
opportunities, inventing the breakthrough
technologies to capture them and building an
organization able to deliver superior results over
the long term.
Today IBM is pursuing a roadmap laid out to
2015 targeting $20 billion in top line revenue
growth from four growth initiatives: Growth
Markets, Cloud, Business Analytics and Smarter
Planet

IBM GMU External Relations 2012

Demand for technology & infrastructure is driving growth markets

Russia has committed a spend of

$400bn on 304 infrastructure
projects by 2015and $300B on
railways by 2030

Emerging markets infrastructure is

expected to benefit from: $6 trillion
in government and private
spending by 2013

Argentinas investment in energy

is about $740 million and it has a
target of 8% of its energy to be
sourced from renewables by 2016

In Africa, 2012 onwards FDI

inflows are forecasted to increase
to $150 billion. The decade 20002010 saw it increase by 87%

India power sector needs

investment of $ 230 billion
between 2012 to 2017

China is expected to build some

1,000 gigawatts of new powergeneration capacity over the next
15 years
Source: EIU 2011

Understanding and building business in growth markets requires

focus and investment
.

Understanding growth
market characteristics

Developing skills & talent

5

Assessing the market

opportunity

Making markets

Investments that support

growth

Brand eminence

Growth from new

markets
Growth in IT will come from new
markets that are emerging at an
astonishing rate. To relieve the strain on
inadequate infrastructure, they are
leapfrogging to new technologies.

Revenue from growth

markets will approach
30% of total IBM
revenue by 2015;
IBM is relying on market
expansion to drive 32%
of new GMU growth.

IBM GMU External Relations 2012

Developing new markets for growth

The IMF expects emerging markets to contribute over 80% of world GDP growth in 2012.
-- The Economist
As IBM begins our second century, we remain driven by our
founder's vision. To be sustainable a business must be built on
intellect, problem solving, imagination, transformation and
innovation. And in our growth markets, this is particularly the case.
Its in growth markets that some of the most complex challenges
and opportunities exist, as countries and businesses grapple with
urban migration of levels unknown in the developed world and with
demands from citizens urban and rural to deliver solutions with
unprecedented speed to connect people and business.

Jim Bramante
Senior Vice President
IBM Growth Markets

We believe this calls for new operating models, new ways of

innovating, new ways of serving clients and we believe IBMs
proven experience and advanced expertise will help public and
private enterprise to move quickly to adapt to these new dynamics.

IBM does business in more than 147 countries in Growth Markets:

Global Headquarters in Shanghai
Eight Growth Market Teams
Central & Eastern Europe

Middle East Africa

Korea
Greater China

Latin America

India
South Asia

ASEAN
Australia,
New Zealand

IBM does business in more than 147 countries in Growth Markets:

Global Headquarters in Shanghai
Eight Growth Market Teams
Eight regional leaders
Central & Eastern Europe
David Stokes

Korea

Middle East Africa

HS Lee

Takreem el Tohamy

Greater China
DC Chien

Latin America
Elly Keinan

India
South Asia
Shanker Annaswamy

ASEAN
Cordelia Chung

Australia,
New Zealand
Andrew Stevens

10

Significant investment in infrastructure & skills are required to deliver

high value systems, solutions and services to clients
A Globally Integrated Enterprise delivers the same services & solutions 24/7

Global Delivery Center

Software & Hardware Lab

Russia

Poland

Research Lab
Innovation Center
Cloud Computing Center

Czech Republic

Slovakia

Romania

Hungary

Micro-financing Hub

Turkey
Natural Resources

South
Korea

Egypt

Morocco
Telecommunications

Mexico

Rail

Philippines

Health
Energy

Vietnam

India
Malaysia

Peru
Brazil

Singapore

Finance
Retail
Public Sector

11

Australia
Argentina

South Africa

Key IBM 2011 investments announced in Growth Markets

IBM to build Cloud Computing

Data Center with local China firm

IBM advances analytics skills

program to global universities

12

IBM GMU External Relations 2012

IBM opens first server remanufacturing center in China

IBM sets up services integration

hub in Changi, Singapore

IBM establishes Science &

Technology Center within the
Skolkovo Innovation Center in
Moscow.

The Africa revolution nobody

should ignore. IBMs invests big
across African countries.

Over $1B investments in business partners across growth markets

Were investing in partners across growth markets

Over 50,000 Business Partners

In 2011, Co-marketing investments supported

600+ Business Partners

Systems technology group spends over $5M

annually transforming the partner ecosystem

Access to over 20 innovation centers, 8 cloud

labs and 2 cloud datacenters

133,000+ professional certifications held by

44,000+ partners in 2011

IBM Growth Markets strategies

Market
Expansion

Making new markets

beyond capital cities
Prioritized 20
Countries

14

IT Infrastructure
Development

High-end Systems
Software solutions
Large Services Projects

Industry
Leadership

Investing in skills
Leading in key
industries
Smarter Cities

IBM has selected 20 countries key for business growth based on

a range of variables
IT Market Size & Growth
IT as a % of GDP
Macro-economic
Business Environment
Political Environment
Human Capital
Physical Infrastructure
Economic Recovery
Government Effectiveness

Russia
Czech
Republic

Poland

Saudi
Arabia

UAE

China

Vietnam

Mexico
Thailand

Brazil

South
Korea
Taiwan

Philippines
Singapore

India

Malaysia
Indonesia
Australia

Chile
South
Africa

IBMs Geographic Expansion Initiative

IBM currently has over 250 branches in more
than 60 growth market countries
IBM plans to open new branches across all
growth market regions in 2012 and through to
2015
IBM's Geographic Expansion initiative includes
smaller, high-growth cities in Brazil, Russia,
India, China and Central Europe as well as
emerging economies in Middle East, Africa, Latin
America, ASEAN and Eastern Europe

16

IBM GMU External Relations 2012

China:
India:
ASEAN:
Brazil:

80% IT opportunity outside major cities

63% IT opportunity outside major cities
72% IT opportunity outside capital cities
6 metro areas outside Sao Paulo, Brasilia, Rio with >$500M
IT opportunity each

Making markets is making news in growth markets

African Banks Turn to IBM to Support

New Wave of Innovation in Banking
Services
IBM signs agreements with leading Kenyan
banks as financial institutions across Africa
invest in smarter banking solutions

IBM Opens 30th Branch Office in

China
Increases the number of growth market
branches by 140 percent over the past 10
years

ASEAN

Population surpassed 550 million, majority 40

years and under

GDP growth to average 6% annually

2011 investments included Global Services

Integration Hub, the Asia Pacific Cloud
Computing Data Centre, and the Smarter Cities
Research Collaboratory

2012 top investments and priorities

IBM will open several new branches in smaller,

rapidly growing CITIES across ASEAN

IBM will open its 7th Innovation Center in

Singapore making it the leading innovation hub
of Asia

18

Across the region, focus on banking and

finance, telecommunications, healthcare,
government, underpinned by Smarter Cities,
BAO and Cloud

Market Expansion

Growing demand for advanced

banking systems and major
investments in
telco and energy
Lac Viet Computing Joint Stock Co. signed a
cooperation deal with IBM Vietnam to provide cloud
computing-based solutions and services for local
businesses.

Global Digital Niaga, a subsidiary of Djarum Group

today launched its new online customer sales website
called Blibli.com. The website uses IBM software to
deliver a personalized and more interactive shopping
experience for Indonesians, selling leading brands in
apparel, cosmetics, electronic equipment, home
furnishings among others.

Australia & New Zealand

Market Expansion

2011 investments included R&D lab in Australia and a

Cloud Data Center in New Zealand

Economic recovery is strengthening, with GDP

forecast to grow by 3.25% in 2011-2012 and 20122013

Both the federal and state governments have

recognized the need to invest heavily in water,
transport, ports, telecommunications, and education
infrastructure to expand Australia's supply capacity

2012 top investments and priorities

Expansion in Western Australia and Queensland

support focus on natural resources industry

Continued focus on banking & finance,

telecommunications, public sector and energy &
utilities industries

Dominated by services sector;

agricultural & mining sectors account
for bulk of exports
National E-Health Transition Authority (NEHTA)
appointed IBM to transform Australias health
system and help to drive smarter healthcare
delivery in an A$23.6 million dollar contract to
design and build Australias National
Authentication Service for Health (NASH) project.

Australias National Broadband Network - NBN

appointed IBM to implement and manage the core
business and operational support systems
required to operate Australias.

Central & Eastern Europe

Bucharest Systems Laboratory opened in

Romania as a facility for Systems
Networking

A multipurpose Cloud Computing center

opened in Poland

Polands IT market is expected to accelerate

and grow in 2012 at 7.1% vs 4.3% in 2011

Investment in infrastructure development in

Russia to 2020 will surpass US$1 trillion

2012 top investments and priorities

Increase footprint in high-growth cities and

regions through Geographic Expansion
initiative

Key sectors for investment are banking,

government and telecommunications

Drive growth from long term

transformational engagements

An increased emphasis on
innovation-related projects driving
demand for IT equipment, training
and infrastructure
Guarantee Fund Turns to IBM to Create Smarter Car
Insurance System in Bulgaria: IBMs Smarter Computing
solution brings drivers and insurance companies faster
customer service, decreased levels of fraud and lower
insurance premiums.
10 Leading Banks in Central & Eastern Europe turn to
IBM to Support Business Transformation: IBM announced
details of 10 Smarter Computing Deals.
Bauman Moscow State Technical University (BMSTU)
in partnership with IBM announced the opening of a
Smarter Cities Development and Education Center in
Russia the first of its kind in the region. Located on the
university's Moscow campus, the center will be home to a
unique educational program giving students the chance to
explore and apply IBM's latest technologies and solutions
to improve the management of urban infrastructure and
support the development of smarter cities.

Greater China

Power consumption rose 11.7 percent year-onyear. The growth in 2012 is expected to slow to 8.5
percent

Chinas largest online retailers expect sales to as

much as triple in 2012 as urban per capita income
rose 7.8 percent

Continued growth momentum in the mobile, 3G,

internet and broadband sectors

The Chinese government has pledged 850 billion

yuan (US$124 billion) for a healthcare reform

The Chinese government is making fierce

investments in cloud initiatives, with an investment
of RMB 1.1 trillion ($173.2 billion)

2012 top investments and priorities

Further expansion into inland cities

Launch of a lab in Taiwan (Taipei) with focus on

Internet of Things.

Focus on Banking, Energy & Utilities, Rail, Healthcare,

Retail, Telecommunications, Insurance and
Automotive -- to support Chinese government's
priorities.

The government is making

US$$173.2B worth of investments
in cloud initiatives
Yi Lian Zhong Information is working with IBM to
build a cloud computing platform that will improve the
life of citizens in China via an online portal for a variety
of social services. YLZInfo will expand services in
Fujian Province to seven more Chinese provinces
allowing them to construct a citizen livelihood service
information network covering 300 million people.
Peking University Peoples Hospital is being
supported by IBM to build an evidence-based patient
centric care (ePC3) system that will enable
cooperation and sharing among medical services
providers for improved patient care. The ePC3 system,
developed by scientists at IBM Research - China and
Peoples Hospital, will provide better clinical decision
support at the point of care by offering a
comprehensive overview of a patients health data as
well as best practices from previous diagnoses,
treatment and research.

India / South Asia

The region expanded its branch offices by a further

18 IBM branches outside tier 1 & 2 cities

IT spend was anticipated to reach US$ 5.4 billion

by the close of 2011

The US$ 10 billion Indian e-commerce market is

expanding exponentially

India's domestic aviation market expansion has

been the strongest in the world

Market for IT products and services expected to

double by 2015 to US$41.2bilion

2012 investments & priorities

22

Aggressively accelerate Market Expansion with

new branches in smaller, rapidly-growing cities
across India/South Asia

Focused investments: Banking, Insurance. Natural

Resources, Manufacturing

Market Expansion
Demand for IT products
& services
expected to double by 2015 to
US$41.2B
Nawanagar Co-op Bank Ltd. Chose IBMs Smart Cloud
Resilience Service for core banking solution to the bank in
partnership with Infrasoft Technologies. As part of the
agreement, IBM will remotely host and manage the IT and
networking infrastructures of the bank while also
implementing the InfrasoftTech OMNIEnterprise core
banking solution.
Wave Inc, one of Indias leading diversified business groups,
has engaged IBM to provide a roadmap to make its greenfield township, Wave City, a Smarter Township. Located in
Ghaziabad (Uttar Pradesh State), Wave City is among the
largest integrated township development projects in Indias
National Capital Region. The 4500 acre township will be one
of the first urban developments in the country residents
keeping operating costs low and maintaining high levels of
service.

Korea

The 2012 government budget concentrates on

welfare and job creation and allocated 60% of
the total for stimulus spending in the first six
months of the year in the face of expected
economic problems.

Country aims to gain 10% of the global cloud

services market by 2014 through development
of Korean cloud computing facilities

More than 70 percent of its 48 million

population carries one or more mobile
handsets

2012 top investments and priorities

Expanding into an addtional 19 cities across

Korea

Focus on Banking & Finance, Government,

Telecommunications

Continuation of government "expansionary

macroeconomic measures to counter
global and local challenges
E-Mart
E-Mart - Mobile Office System
the largest retailer in Korea chose IBM to undertake their
mobile office project for E-Mart, to build the optimized mobile
business environment. IBM's mobile office system is designed
for utilizing smartphone and will provide the comprehensive
services for an optimal working environment. Increase
productivity, client satisfaction and enhanced collaboration are
expected through this system.

E-Trade Securities selected IBMs Power System as the

hardware platform to establish its next-generation system,
following its business expansion to become a comprehensive
securities company.

Latin America

Four cities in Latin America are within the 25 most

populated in the world (Mexico City, Sao Paulo, Buenos
Aires and Rio de Janeiro).

Net food exporter accounts for 10% of global agricultural

exports.; a third of the world's unused land suitable for
farming; has capacity and potential to help solve global
food crisis.

Will become an increasingly important oil producer by

2015 and an important component of the emerging
Atlantic Basin energy system

LAs income per person has doubled

in 20 years & governments will invest
US$450B in infrastructure by 2015
Nieves de Chapetlco in Argentina selected IBM to
develop a solution to enable rack skiers in real time
and speed up rescues

2012 top investments and priorities

Expand the IBM footprint through geo-expansion

initiative in LA countries

Lead industry agenda/discussion in banking,

healthcare, natural resources, energy & utilities, retail
and telco

Drive transformational value for our clients through

services, software and high end systems

In Rio de Janeiro, Brazil, city managers apply the

technology through a unified operations center to
accurately gather, analyze and act on information
about city systems and services; analyze real-time
information to better model and anticipate problems;
and integrate real-time information from across
multiple city systems to foster collaborative decisionmaking

Middle East & Africa

Soaring demand and rapid industrial

developments enabled the region to
continue as the most dynamic power
sectors in the world

As telecoms markets approach saturation,

fixed and mobile operators are seeking
new ways to generate revenue and boost
profits

Islamic finance industry is currently valued

at $1 trillion worldwide. More banks in the
region are moving towards Islamic banking
as a response to a sustainable business
model.

2012 top investments and priorities

Continued geo expansion across MEA

Focus on Banking, Telco, Public Sector, Oil & Gas

Investment by CSC/ESC teams throughout MEA

2012 finance sector trends in MEA:

mobile devices, social media, advanced
analytics and more stringent regulation *
IDC
The King Abdulaziz City for Science and
Technology (KACST), Saudi Arabias national
research and development organization, announced a
research collaboration with IBM aimed at creating a
water desalination plant powered by solar electricity,
which could significantly reduce water and energy
costs.
Tanfeeth, a fully owned subsidiary of Emirates NBD,
the UAE's largest bank, announced a long term
strategic agreement with IBM to support Tanfeeth as
the Gulf Cooperation Council's (GCC) first shared
services organization, deliver service excellence
across the entire business value chain.
African Banks turn to IBM to support new wave of
Innovation in Banking Services - IBM signed
agreements with leading Kenyan banks as financial
institutions across Africa invest in smarter banking
solutions

Africa is poised for a wave of modernization and industry

infrastructure developments
Algiers Tunis
Tripoli
Rabat
Casablanca

Africa is the fastest urbanising continent in the

world and must provide energy to meet annual
urban growth rate twice as high as Asia and Latin
America
Key statistics

Dakar
Lagos
Accra

Nairobi
Dar Es Salaam

Africas $107B financial services industry will log

impressive growth for the rest of the decade
Economy estimated to grow 5.5 - 6% in 2012

Luanda

Large Companies: More than 75 companies revenues

over $3B
Johannesburg
Cape Town
Durban

IBM priorities
Expanding into Africa by doubling offices by 2015
Smarter Cities events to take place in many countries
IBM has developed strong competencies in Banking, Telco, Public
Sector, Oil & Gas
Investments made in education and business & technology skills
development
IBM will double the amount of Corporate & Executive Service Corps
teams working in African countries in 2012

Growing Middle Class: By 2015, 87M households (34%

pop) in the middle income group
Critical Mass in Cities: 52 cities of over 1M people
(more than Europe)
Largest Working Age Population: By 2040 to exceed
1.1B (> China or India)

Australia
New Zealand
Brisbane
Sydney
Auckland
Perth
Adelaide
Hobart
Ballarat
Melbourne
Wellington
Christchurch
Lower Hutt

ASEAN
Bandar Seri Begawan
Jakarta
Surabaya
Medan
Makassar
Manila
Cebu
Chiangmai
Bangkok
Pattaya
DaNang
Ho Chi Minh City

IBM has
established
presence in many
Growth Market
countries...
** Representative only, not a
complete list of all IBM branches.

27

Central
Eastern
Europe
Sofia
Zagreb
Prague
Brno
Ostrava
Tallinn
Budapest
Almaty
Riga
Vilnius
Warsaw
Wroclaw
Krakow
Gdansk
Katowice
Poznan
Bucharest
Timisoara
Ufa
Kazan
Rostov-on-Don
Samara
Perm
Novosibirrsk
Krasnoyarsk
Moscow
St Petersburg
Ekaterinburg
Belgrade
Bratislava
Banska Bystrica
Kosice
Ljubljana
Ankara
Istanbul
Izmir
Dnepropetrovsk
Kiev
Tashkent

Greater
China
Group
Beijing
Hong Kong
Taipei
Hefei
Xiamen
Chongqing
Shanghai
Beijing
Tianjin
Fuzhou
Guangzhou
Shenzhen
Nanjing
Harbin
Shijiazhuang
Wuhan
Zhengzou
Changsha
Changchun
Nanning
Suzhou
Nanchang
Shenyang
Dalian
Taiyuah
Qingdao
Jinan
Xian
Chengdu
Urumchi
Kunming
Hangzhou
Ningbo

India
South Asia
Chandigarh
Dehradun
Delhi
Gurgaon
Noida
Jaipur
Lucknow
Guwahati
Ahmedabad
Indore
Mumbai
Kolkata
Pune
Bhubaneshwar
Hyderabad
Vizag
Bangalore
Chennai
Coimbatore
Kochi
Nasik
Colombo
Dakkar

Korea
Seoul
Daejeon Daegu
Kwangju
Pusan

Latin
America
Buenos Aires
Cordoba
Rosario
Rio de Janeiro
Salvador
Fortalez
Belo Horizonte
Uberlandia
Recife
Curitiba
Porto Alegre
Campinas
Joinville
Anto fogasta
Medellin
Cali
Guayaquil
Guadalajara
Monterrey
Queretaro
Lima

Middle East
Africa
Luanda
Qatar
Alexandria
Cairo
Accra
Nairobi
Casablanca
Port Louis
Lagos
Karachi
Islamabad
Lahore
Riyadh
Dakar
Johannesburg
Pretoria
Durban
Cape Town
Port Elizabeth
Bloemfontein
Dar es Salaam
Tunis
Abu Dhabi
Dubai
Ouangadougou
NDjamena
Kinshasa
Libreville
Accra
Lilongwe
Antananarivo
Niamey
Seychelles
Freetown
Kampala
Lusaka

Simplifying technology for companies is key to IBMs growth

IBM ushers in a simpler era of computing introducing "expert

integrated systems PureSystems

The worlds first family of expert integrated systems

Infrastructure System:
Expert at sensing and
anticipating resource
needs to optimize your
infrastructure

29

IBM GMU External Relations 2012

Platform System:
Expert at optimally
deploying and running
applications for rapid
time-to-value

IBM PureSystems integration by design for clients

Deployment
Applications

Middleware

Development

Optimizes the complete solution stack:

All hardware and software components factory
integrated and optimized
Single point of unified lifecycle management
Integrated monitoring & maintenance
Integrated and elastic application and data runtimes

Management

Application patterns allocate system resources for

optimal performance, security and reliability
Fully virtualized and built for cloud
Storage tuned to data needs

Virtualization

Storage

Servers
Networking

30

IBM GMU External Relations 2012

IBM PureSystems enable multiple client initiatives

Using a consistent, standardized approach
Optimize

Innovate

Better tune and automate systems and

applications to improve application
performance, scalability and reliability

More rapidly deliver new applications

and services to
meet new business needs

Consolidate
Accelerate Cloud

More efficiently
consolidate
systems and
applications to reduce
operating expenses

Launch self-service
applications efficiently in
a secure, and integrated
cloud environment

Optimize

Consolidate
31

IBM GMU External Relations 2012

Innovate

Accelerate
Cloud

IBM Research is IBMs market differentiator pushing

boundaries of science, business and IT for a better world
19th

year IBM leads patents

Healthcare
Creating a massively intelligent physicians
assistant that compares the symptoms of an
individual patient with millions of related case
histories.

Quadrupling HP patents & leading Oracles total six times over

1000 researchers
Dedicated to services and business analytics

Banking & Financial Markets

500 patents

Providing automated and intelligent investment

advisory services in emerging and mature
markets.

On business analytics each year developed by Services Innovation

Lab
Leading Innovation

200 universities
Are working with IBM on curriculum and training for business
analytics

18 first-of-a-kind projects
Since 2010 IBM has been working with clients on breakthrough
business analytics topics

Working with Clients

IBM research in growth markets

New labs in 2011 in Australia and Brazil, adding to growth market
research in China, India, Israel, Japan and via Watson

Retail
Helping retailers to both "hear" the global
conversation about their products, services and
brands, and then determine the right next best
action.

Government
Enabling agencies of all kinds to immediately answer
citizens' questions on myriad issues, from zoning
regulations to eligibility for specific services.

Research: new innovations and

Research & demo

Commercialization
Future technologies

Analytics is enabling clients with trusted and relevant

information in REAL TIME
For each industry the journey consists of a series of steps along a path of competencies to reach a smarter outcome
for organizations
The power to pull together many sources of data in real time to source actionable insights and optimize clients
business
Revenue IBM generated from Analytics solutions grew 16% from 2010

Through to 2015, more

than 85% of Fortune
500 organizations will
fail to exploit big data
for competitive
advantage
--Gartner Predictions 2012

34

IBM GMU External Relations 2012

IBM has developed capabilities that improve visibility, control and

automation of cloud computing services

IBMSmartCloud
Business Process as a Service
Software as a Service
Platform as a Service
Infrastructure as a Service

80% of the Fortune 500

use IBM cloud computing
capabilities

IBMSmartCloud
Foundation

Private & Hybrid Clouds

IBM generated 3.8 times

the 2010 revenue

Cloud Enablement technologies

IBMSmartCloud

IBMSmartCloud

Services
Managed Cloud Services

Solutions
Cloud Business Solutions

Infra & platform as a Service

Software & Business Process

as a Service

Commitment to open standards & broad ecosystems

IBM GMU External Relations 2012

IBM response

IBM response
Citizen demand
Disaster response
Broadband for
education
Border control &
immigration

36

Core banking for

customer demand
Analytics for risk and
fraud
Private & hybrid
cloud

IBM GMU External Relations 2012

IBM response

IBM response
EH&S
requirements
Pressure on grid
infrastructure
Asset control and
operational
efficiency

IBM response
Customer
experience demand
Cloud infrastructure
Enterprise mobility
solutions
Infrastructure for
new markets

Traffic prediction &

congestion charging
analytics
Contractor network
management
Transport logistics
for speed &
efficiency

By smarter we
mean the world is
becoming
instrumented,
interconnected
and intelligent.

37

A city is essentially a
system of systems
transportation,
healthcare, public safety
and education.
To enable a Smarter
City, IBM is working to
improve the quality &
efficiency of services
and how they operate
and function.
38

IBM GMU External Relations 2012

Smarter Planet principles deliver client value by solving industry

specific problems

Enable business service

and product innovation

Increase agility

Drive enterprise
operations' effectiveness
and efficiency

Connect and empower

people

Manage risk, security

and compliance

Turn information into

insights

Investing in cities, creating a Smarter Planet

Smarter Cities Challenge Award 2012

Geraldton, Australia
Jurong Lake District, Singapore
Da Nang, Vietnam
Chonburi, Thailand
Cheongju, Korea
Nanjing, China
New Taipei City, Taiwan
Ahmedabad, India
Pune, India
Toluca, Mexico
Rosario, Argentina
Curitiba, Brazil
Medellin, Colombia
Accra, Ghana
Nairobi, Kenya
Tshwane, South Africa
Rabat, Morocco

The Smarter Cities

Challenge is a
competitive grant
program awarding $50
million worth of IBM
expertise over the next
three years to 100 cities
around the globe.
Designed to address the
challenges facing cities
today, these grants have
addressed topics from
urban agriculture to
public safety.

IBMs portfolio of solutions are designed to help clients solve their

critical business problems

42

Brands
Acquisitions
Development
Business
Partners

IBM GMU External Relations 2012

Services

Systems
Technology
Group
Research
Business
Partners

Software

Hardware

IBM has more leadership positions than

key competitors...

Global Business
Services
Global
Technology
Services
Global Process
Services
Global Finance

With over 60 acquisitions since 2005, IBM is now a

software powerhouse with leading positions in nearly all
categories. But there are also several white spaces,
which our analysis of 103 Gartner Magic Quadrants
identified. Morgan Stanley March 2012

Integrating corporate citizenship & social responsibility into every

aspect of IBM
IBM engages with communities around the
world by offering our technology, services and
expertise to help solve some of the worlds
most complex problems.
Over the 100 years of IBMs history, weve
developed a thoughtful and comprehensive
approach to corporate citizenship aligned to
IBMs values.

Empowering
employees
to serve their communities

We identify and act on new opportunities to

apply our technology and expertise to societal
problems such as disaster response,
community investment and education
development.
In 2011 IBMers around the world pledged
more than 3 million hours of service to their
communities, equating to more than 1000
person years of service in just this last year

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Pro-bono business and community service builds foundational

relationships at city levels
Corporate & Executive Service Corps Deployments 2008-2011 & plans for 2012

Russia

Poland
Romania

Kazakhstan

Turkey

China

Morocco
Egypt
UAE

Mexico

India

Ghana

Nigeria

Colombia

Kenya

Brazil

Tanzania

Peru

2008-2011
Argentina

Vietnam

Thailand

Senegal

Chile

Bangladesh

CSC
ESC
2012
CSC
ESC

South
Africa

Sri
Lanka

Philippines

Cambodia
Malaysia

Indonesia

Evolving the IBM corporation through talent & skills

IBM is making long term investments to develop talent for the growth markets
Government Partnerships

Global Placements & Mentoring

By helping governments to
establish new national research
facilities, we are helping to
create new industries, helping to
develop long terms skills
curriculums like SSME.

Transferring knowledge and expertise

to the growth markets is critical. One of
the ways we do this is to move experts
into the market to coach and train local
teams.

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IBM GMU External Relations 2012

Collaboration with
Universities
IBM works with 5,000 universities
and 10,000 faculties around the
globe. We have joint initiatives and
investments with universities in
Vietnam, Malaysia, India, Russia,
Brazil, Bulgaria, Egypt, China and
Africa to encourage the training of
skills required.

Growth Markets are key to IBMs roadmap for success in 2015

Company facts & financials

Headquarters: Armonk, NY, USA
CEO: Virginia M Rometty
Chairman: Samuel J Palmisano

Growth Markets
GMU Headquarters: Jin Mao Tower, Shanghai, China
Senior Vice President: Jim Bramante
Regional offices: Bangalore, Beijing, Dubai, Prague, Sao

2011 year-end from continuing worldwide operations

Paulo, Seoul, Singapore, Sydney

Revenue: $106.9 billion

Net income: $15.9 billion
Total assets: $116.4 billion
Number of employees (worldwide): 426,751
Stockholders of record: 525,870
* All dollar figures are US

Total countries: 140+

https://twitter.com/#IBMGrowthMkts
This presentation was created by IBM GMU External Relations
For information or queries about this presentation please contact:
Megan Rosier, Manager, GMU External Relations morosier@au1.ibm.com
Karen Davis, Director, GMU External Relations karen.davis@au1.ibm.com

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