June 2004

1. June 2004

2. IBM has reinvented itself many times. But through it all – our core, IBM’s DNA, it’s soul – remained intact. That’s because of something that was part of this company since its inception.IBM’s most important innovation wasn’t a technology or management system. Our revolutionary idea was to define and run a company by a set of strongly held beliefs – beliefs that would transcend economic cycles, geopolitical shifts, and generations of products, technologies, employees and leaders. IBM’s most important innovation was “the IBMer”

3. Our Values IBMers Value • Dedication to every client’s success • Innovation that matters – for our company and for the world • Trust and personal responsibility in all relationships

4. IBM Named Best in Industry for Working Mothers. 16 years in top 10. - Working Mother Magazine IBM named #1 Training Organization - Training Magazine IBM awards and recognition IBM Named to Hispanic Corporate 100. - Hispanic Magazine IBM Named #1 Employer by NSBE – 7th Year in a Row. - National Society of Black Engineers IBM Receives New Freedom Initiative Award for its Training and Mentoring Programs for the Disabled. - U.S. Department of Labor

5. Our Colleagues Nearly 320,000 IBMers contributing to the success of IBM Asia Pacific 60,000 Corporate headquarters Americas 163,000 Europe, Middle East, Africa 96,000

6. Our Colleagues IBM’s talented people • 5 IBM Nobel Prize winners • Number one in patent generation for 11 consecutive years (3,415 patents awarded to IBM in 2003) • 47,000 industry experts in Business Consulting Services

7. Our Colleagues Workforce diversity Cultural Awareness Equal Opportunity Work/Life Balance

8. Our Colleagues 2001- present History of inclusion • Extended IBM’s Global Work/Life Fund into 2005 • Added "sexual orientation, gender identity or expressions,” to global equal opportunity letter • Spearheaded People with Disabilities marketing initiative on accessibility • Hired women before women were given a right to vote 1899 • Hired first person with disability 1914 • Recruited first professional women • Appointed first female vice president • Hired first black salesman • Introduced first written Equal Opportunity policy 1935-1953 • Helped to create Hispanic Leadership Fund • Added sexual orientation to nondiscrimination policy • Implemented domestic partner benefits 1972-1996

9. Our Colleagues Connecting through communities and collaboration Organizations Communities Teams Technology Disciplines You New employees Issues Business Industries Software Group IBM Global Services Sales and Distribution

10. Our Careers Solutions sales Contracts & negotiations Business development Sales operations Education Consultant IT architect IT specialist Product services Project management Technical services Engineer Technician Software engineer Sales Research & development IT and Services Manufacturing Marketing Marketing management Market intelligence Distribution channels Technical support marketing Integrated marketing comms Marketing operations Technician Engineer Production Supply Chain Operations Communications Finance Administrative services Human resources Legal Logistics Procurement Fulfillment Areas of expertise Employee roles

11. Our Careers Connecting new talent • Connections coach • Your IBM – a learning program for new employees • Classroom instruction • e-learning • New hire network • New hire website

12. Our Careers Managing performance @ IBM Establish annual work objectives Performance evaluation Assess skills & competencies / Update development plan Compensation & future opportunities PEOPLE DEVELOPMENT Checkpoint/ Feedback Participate in learning activities

13. Our Careers Foundational Competencies

14. Our Careers Learning @ IBM • Collaborative learning • e-labs • Community forums • Team rooms • Virtual conferences • Experience-based learning • Classroom / learning labs • Role playing • Mentoring • Interactive e-learning • Computer-based training • Simulations • Support and reference • Online tutorial • Webcasts • Case studies

15. Our Careers Leadership Career growth Degree of business contribution Professional Management Dual career path Set your goals Build your expertise Manage your career

16. “Home”, “Work”, & “Career and Life” tabs Our Work Tools IBM’s On Demand Workplace Essential Links Employee directory Search for info Top Stories Stock price News based on your w3 profile

17. Our Work Tools Instant messaging, e-meetings, and team rooms Colleague contacts Instant discussions, Instant Information Knowledge cafe

18. Our Work Tools Lotus e-mail / calendar Calendar Contact info Work folders e-mail

19. Our Rewards Pay is based on performance • How IBM does it • Target total cash (base + bonus) • Top rewards for best performers • Intensive market research • Regular reviews • Business results drive investment • Your pay for performance • Competitive base pay • Sales commissions • Consulting incentives • Performance bonus for all other

20. Our Rewards Through benefits, IBM provides financial assistance for some of life’s most important obligations – and offers support for key life events. • Benefits vary by country and region • Health, retirement and other income protection benefits • IBM stock purchase discounts • Employee product discounts • Onsite workplace safety and wellness support • Vacation and holidays • And more

21. Our Culture We are flexible about how we work • Mobility Program • Mobile workstation • Customer site • Home • Flexible Work Hours • Exploring options outside the traditional office • Work at Home • More than 42% of our workforce are covered by flexible workplace practices • Supports work / life balance

22. Our Culture We voice our opinions • Speak Up • Appeals • Roundtables & Executive Interviews • Your manager • Global Pulse Survey • IBM Ideas

23. Our Culture We get involved in the community • On Demand Community • Community service assignments • Volunteer programs • University programs • Employee charitable campaign

24. The End