Our Success in Asia is in your hands

1. Janet Matton, Vice President, IBM Australia / New Zealand September 14th, 2010 Our Success in Asia is in your hands

2. Agenda • A career summary • Asia – the differences • IBM – a global innovation company • The essentials of a world wide business growing into Asia • The opportunity and the imperative 2

3. An ordinary childhood leading to a global career Born 1956 - out of Joyce May Naismith - housewife / part-time worker / artist Reginald Charles Matton - Master Plumber & Builder Education Rosanna State School Macleod High School Swinburne College - BCom, SW, RHwGL Travel 1973 – New Zealand1976 – Japan1977 – China 1978 –> Everywhere !! Career1973-1974 Melbourne Articles Clark, McNab & McNab1975-1978 Melbourne Swinburne1978-1983 Melbourne IBM Melbourne, Systems Engineer1983-1986 Canberra IBM Canberra, Manager1987-1995 Sydney IBM Sydney, Manager/Snr Manager / CIO1995-1998 CT/ NYC IBM USA, Manager Headquarters1998-2001 London IBM UK, Manager Europe2002-2004 Sydney IBM Sydney, Executive AN/Z 2004-2006 Tokyo IBM Asia, Executive Asia Pacific2007-2008 Shanghai IBM Asia, Executive Asia Pacific2009 - ?? Melbourne IBM Melbourne, Executive AN/Z

4. IBM – a global innovation companyWe’ve only just begun to uncover what is possible on a smarter planet Instrumented Interconnected Intelligent

5. Established in 1937 $9.6B revenue FY2008 47% of AP total revenue 21,000 employees Research Labs: 1 Software Development Labs: 1 Global Delivery Centers: 1 Average age 40.5 Established and re-established in 15 countries between 1932 and 1993 $11.3B revenue FY2008 53% of AP total revenue 120,000+ employees Research Labs: 2 Software Development Labs: 8 Global Delivery Centers: 56 Average age 30 IBM has been participating in Asia for more than 75 years. Over time the dynamics for growth have shifted from Japan to China, India and other Asian economies Japan Asia Pacific Relocated AP Headquarters from Tokyo to Shanghai in 2007

6. IBM has evolved from a US multinational company to became a globally integrated enterprise in order to capture the greatest growth opportunities. In 2008 IBM formed the Growth Markets Unit with headquarters in Shanghai

7. IBM has evolved from a US multinational company to became aglobally integrated enterprise in order to capture the greatest growth opportunities. In 2008 IBM formed the Growth Markets Unit with headquarters in Shanghai

8. China Hong Kong Taiwan China China GDP growth – 9% Population: 1,330 million people Projected to become the world's largest economy by 2040 World’s largest source of university graduates IBM China

9. China Hong Kong Taiwan China China GDP growth – 9% Population: 1,330 million people Projected to become the world's largest economy by 2040 World’s largest source of university graduates AP Centres: • IBM Global Procurement • Asia Pacific Business Transformation Outsourcing Centre • Call centre/contact centre • System production & export centre Global Centres in China: • Rail Center • Research Lab, Development Lab • Systems & Technology R&D lab • System Centre • Innovation Centre • IBM’s first global supply chain centre

10. India / South Asia • 100,000 employees; 2500 partners • IBM has more than 35 centers in India • India’s leading Managed Business Process Services (MBPS) vendor – 30,000+ IBMers. • Largest multi lingual software exporter in India,

11. Australia / New Zealand Australia – population 21.8 million, GDP growth 2.2% New Zealand – 4.2 million, GDP growth 0.2% IBM Australia • 15,000 employees • 1,500+ business partners • 40+ locations, AP support centres • In 2008, IBM Australia generated revenues of over $A4 billion for the first time in its 76 year history • Export revenues of $A592 million. Darwin Brisbane Perth Gold Coast Sydney Adelaide Ballarat CANBERRA Auckland Melbourne Hobart WELLINGTON IBM New Zealand Christchurch • 1,000+ employees • 12 locations • Access to a network of 1,000+ partners System and technology lab Sales office

12. Attitude towards the boss… Working in Asia – some simple comparisons

13. Dealing with a problem… Working in Asia – some simple comparisons

14. Developing & giving an Opinion… Working in Asia – some simple comparisons

15. Punctuality & attitude to time Working in Asia – some simple comparisons

16. Queue when waiting… Working in Asia – some simple comparisons

17. Noise level in a restaurant… Working in Asia – some simple comparisons

18. The Opportunity and the Imperative • Australia companies are growing into Asia • Banks, Mining Companies, Breweries & Liquor, other • Skills and knowledge position Australians to compete • Our future with Asia is inextricably linked by trade and proximity • Need to design our future success by starting with the content of our education programs • Women are under-representedin key sectors • Despite higher education levels,workforce participation rates are dropping • Hard disciplines – eg Science, engineering, IT – together with cross cultural awareness, are the keys to our future prosperity

19. Thank you謝謝ありがとう　ございました。

20. ASEAN Singapore Malaysia Thailand Indonesia Philippines Vietnam • Population 576 million • World’s youngest workforce: By 2050 22% will be over 60 Vs 30- 40% in China, US & EU • GDP: 1.4 Trillion Thailand IBM ASEAN Philippines • 10,000 clients • 4,200 business partners • 16,200 IBMers – 67% working on global missions Vietnam Sales & Distribution Business Transformation Services IBM Software Lab Malaysia Disk & Tape Storage Systems Manufacturing Singapore Regional Contact/Support Center IBM Research Lab Indonesia Global Service Delivery Centre Regional Linux Technology Centers Integrated Supply Chain Manufacturing AP Accounting/Fulfillment Center Regional Radio Frequency Identification Device (RFID) Center 20