IBM Corporate Citizenship & Corporate Affairs

ibm.com/responsibility

IBM 2014 Corporate Responsibility Financial Analysts Webcast

November 4, 2014

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.

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Agenda

� Introduction of Panelists

� Overview by Stanley Litow

� Question & Answer Session

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Panelists

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

Wayne Balta, Vice President, Environmental Affairs and Product Safety

Michelle Browdy, Vice President, Assistant General Counsel & Secretary

Christopher Padilla, Vice President, Governmental Programs

Joanne Wright, Vice President, Supply Chain

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

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IBM is a values-based enterprise

IBMers around the world invent and integrate hardware, software and services solutions that enable forward-thinking enterprises, institutions and people everywhere to succeed on a smarter planet

IBM operates in more than 175 countries

$98.4* billion in revenue in 2013

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*From continuing operations

IBM 2013 Corporate Responsibility Report Highlights

� Communities

� The IBMer

� Environment

� Supply Chain

� Governance and Public Policy

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Communities

IBM is transforming communities by matching technology and expertise against societal needs and then implementing solutions that are sustainable and scalable

• Education• P-TECH

• Reading Companion

• University Relations• Teachers Try Science

• KidSmart

• Innovation • World Community Grid • Impact Grants• Disaster Preparedness, Relief & Recovery• SafetyNet with Nonprofits

• Development• Smarter Cities Challenge • Corporate Services Corps• SME Toolkit• Supplier Connection

• Service • On Demand Community

• Employee Donations & Programs

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Employees

IBM continues to invest in our workforce

� Supporting IBMers

– Think 40/ Think Academy

� Employee Well-Being

– A culture of health

– Value through innovation

� Employee Inclusion

– Advancement of women

� Leadership Development

– Manager Champion Group

� Opportunities to gain global experience; Corporate Service Corp

� Supporting employee volunteerism

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Environment

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

� Global EMS

� Energy conservation

� Climate protection

� Environmentally preferable materials

� Environmental requirements in the supply chain

� Management of end-of-life electronic equipment

� Solutions for environmental sustainability

For more about IBM and the Environment go to ibm.com/ibm/environment/annual/

Energy Conservation

3.5% GoalAchieve annual energy conservation savings

equal to 3.5 percent of IBM’s total energy use.

6.7% Result

In 2013, IBM’s energy conservation projects across the company delivered savings equal to 6.7 percent of its total energy use.

Data Center Energy Efficiency

46 IBM data centers across 19 countries were awarded Participant status – EU Code of Conduct for Energy Efficiency in Data Centres.

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Supply Chain Responsibility

Commitment to collaboration in the global IT supply chain:

� Supply chain Code of Conduct is an integral part of Procurement strategy

– Social responsibility: Labor,

Health & Safety, Environmental, Ethics, and

Management Systems

– Robust supplier audit program

� Commitment to continuous improvement through supplier engagement

� Industry collaboration via theElectronic Industry Citizenship Coalition (EICC)

� Conflict Minerals program implemented following electronic industry standard practices

� Supply chain diversity continuous growth

Amount of IBM business conducted with first-tier diverse suppliers

2011 $2.5 billion

2012 $2.6 billion

2013 $2.7 billion

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Governance and Public Policy

IBM collaborates with lawmakers, regulators, public officials, and civic leaders around the world. 2013 priorities were:

�Workforce flexibility

�Finance, taxation, and corporate governance

�Technology policy

�Trade facilitation

�Market support

�Compliance

6,800+the number of US patents awarded to IBM in 2013

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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

Michelle Browdy, Vice President, Assistant General Counsel & Secretary

Christopher Padilla, Vice President, Governmental Programs

Joanne Wright, Vice President, Supply Chain

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

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