IBM 2013 Annual Report Download - page 8

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2000 2013
7
A Letter from the Chairman
1. We continuously remix our business
toward higher-value, more profitable
markets and opportunities.
Segment Pre-tax Income Mix*
($ in billions)
Key drivers:
Revenue Growth
A combination of base
revenue growth, a shift to
faster-growing businesses
and strategic acquisitions.
Operating Leverage
A shift to higher-margin
businesses and enterprise
productivity derived
from global integration
and process efficiencies.
Share Repurchase
Leveraging our strong cash
generation to return value
to shareholders by reducing
shares outstanding.
* Excludes acquisition-related and nonoperating retirement-related charges.
** Net acquisitions include cash used in acquisitions and from divestitures.
A long-term perspective ensures IBM is well-positioned
to take advantage of major shifts occurring in technology,
business and the global economy.
Generating Higher Value at IBM
Operating Earnings Per Share*
2. This generates significant profit and cash, which
allows us to invest in future sources of growth and
provide strong returns to shareholders.
Free Cash Flow
($ in billions)
Primary Uses of Cash Since 2000
($ in billions)
$165
Net capital
expenditures
Dividends
Net share
repurchases
$59
$
108
$30
$3
2
Net
acquisitions**
$170
Operating Pre-tax Income Margin*
Hardware/Financing
Services
Software
2000 2013
$16.28
2015
$20
At Least
Operating EPS in 2015*
3. We deliver long-term value and performance
while achieving our 2015 operating EPS target
along the way.
2000 2013
10%
2
1%