Financial Snapshot (0.5 MB)

IBM Corporation Financial Profile
Recent Highlights:
April 2011
1Q'11 8% revenue growth driven by Systems & Technology, Software, and Outsourcing
Continued margin expansion: Gross, Pre-Tax, and Net Income Margins
Delivered 21% Yr/Yr Operating (Non-GAAP) EPS growth
Returned over $4.8B to shareholders; strong Balance Sheet
Raised FY'11 Operating (Non-GAAP) EPS expectations to at least $13.15
($ in Billions, except per share amounts)
($ in Billions)
FY
2010
P&L Highlights
Revenue
@ constant currency
$99.9
Pre-Tax Income - Operating
Net Income - Operating
EPS (Diluted) - Operating
Free Cash Flow*
Yr/Yr
1Q
2011
Yr/Yr
4%
3%
$24.6
$19.9
10%
$4.0
12%
$15.0
12%
$3.0
13%
$11.67
16%
$2.41
21%
$16.3
8%
5%
Assets
Cash & Marketable Securities
Global Financing Assets
Non-Global Financing Assets*
Liabilities
Global Financing Debt
Non-Global Financing Debt*
Other Liabilities
$0.8
Equity
Key P&L Metrics - Operating
Gross Profit Margin
Expense / Revenue %
Pre-Tax Income Margin
Tax Rate
Net Income Margin
46.1%
26.2%
19.9%
24.4%
15.0%
Yr/Yr
0.5
0.5
1.0
1.4
1.0
pts
pts
pts
pts
pts
1Q
2011
Yr/Yr
44.5%
28.3%
16.2%
25.0%
12.1%
0.8 pts
0.2 pts
0.6 pts
(0.8 pts)
0.6 pts
2010
Revenue by Geography (excludes OEM)
Key Metrics
Non GF Debt/Cap
Global Financing Leverage
Dividend Yield
Credit Rating (Moody's, S&P)
2010
Revenue by Business Segment
U.S.
Comm's
34%
Asia Pacific
24%
$11.7
$34.5
$67.3
$113.5
$13.2
$32.3
$67.4
$113.0
$22.8
$5.8
$61.7
$90.3
$23.7
$6.5
$59.9
$90.2
$23.2
$22.8
Services
57%
Mar
2011
23%
7.0
1.7%
Aa3, A+
25%
7.0
1.6%
Aa3, A+
Systems &
Financing
Services
20%
17%
39%
Software
Software
23%
LA
Dec
2010
2010
Pre-Tax Profit by Business Segment
Systems &
Financing
9% Can/
EMEA
Mar
2011
* Includes eliminations of inter-company activity
* Net Cash from Ops excl GF Receivables, less Capital Expenditures
Dec
2010
Dec
2010
Balance Sheet
44%
33%
Five Year Summary
Operating (Non-GAAP) EPS (1)
Operating (Non-GAAP) Margins
Free Cash Flow ($B) (2)
$16.3
50%
Gross Profit Margin
40%
42.2%
42.6%
43.9%
$14.3
$11.67
45.7%
46.1%
$15.1
$12.4
$10.03
$10.5
$8.86
$7.46
30%
$6.31
Pre-Tax Income Margin
20%
10%
15.3%
15.4%
16.0%
'06
'07
'08
18.9%
19.9%
'09
'10
0%
'06
'07
'08
'09
'10
(1) From Continuing Operations
2006-2008 reflects the adoption of amendments to ASC 260, "Earnings Per Share"
'06
'07
'08
'09
'10
(2) Net Cash from Operations excluding GF Receivables,
less Capital Expenditures
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.
For reconciliation to GAAP and other information about (i) 1Q 2011 (A) operating EPS, operating pre-tax income, and operating net income, (B) free cash flow, (C) revenue at constant currency, and (D) operating
gross profit margin, operating expense/revenue %, operating pre-tax income margin, operating tax rate and operating net income margin, and (ii) 2010 and 2011 non GF debt-to-capital ratio, see Non-GAAP
Supplementary Materials and related information in the Form 8K submitted to the SEC on April 19, 2011. For reconciliation to GAAP and other information about (i) 2010 (A) operating EPS, operating pre-tax income,
and operating net income, (B) free cash flow, (C) revenue at constant currency, and (D) operating gross profit margin, operating expense/revenue %, operating pre-tax income margin, operating tax rate and operating
net income margin, and (ii) 2006 - 2010 free cash flow, see Non-GAAP Supplementary Materials and related information in the Form 8K submitted to the SEC on January 18, 2011. For reconciliation to GAAP and other
information about 2006 to 2010 (i) operating gross profit margin and operating pre-tax income margin and (ii) operating EPS, see IBM Form 10Q (page 62) submitted to the SEC on April 26, 2011.