Finance

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Capitalize on the Challenges

Americas

Europe / MiddleEast / Africa

Latin AmericanRegion

North Region Nordic Region Central Region South Region West Region

ƒ Argentina–Paraguay–Uruguay–Chile–Colombia–Ecuador–Peru–Bolivia–Venezuela–Latin Caribbean Region

ƒ Brazilƒ Mexico

ƒ Caribbean - North

ƒ Germanyƒ Austriaƒ Switzerlandƒ Central and Eastern Europe, Middle East, Africa

ƒ Italyƒ Portugalƒ Spainƒ Greeceƒ Turkeyƒ Israel

ƒ Franceƒ Belgium

USA Canada

Asia Pacific

Greater China Japan Korea ASEAN

ƒ Indonesiaƒ Malaysiaƒ Philippinesƒ Singaporeƒ Bruneiƒ Indiaƒ Sri Lankaƒ Thailandƒ Bangladeshƒ Vietnam

ƒ Chinaƒ Hong Kongƒ Taiwan

Australia/New Zealand

ƒ United Kingdomƒ Netherlandsƒ Irelandƒ South Africa

ƒ Denmarkƒ Finlandƒ Norwayƒ Sweden

FinanceIBM WORLDWIDE ORGANIZATION

Latin America

Finance

Global Services

Software Group

Technology Group

SystemGroup

Global Financing

Personal Systems

Group

Enterpriseon

Demand

Planning

Business Development

Type text hereInternal Audit & Business

Controls

Accounting

Treasury

Pricing

Sales & DistributionAmericas/EMEA/AP

Brands Corporate

Group

Business Unit Site

FINANCE / MULTI-DIMENSIONAL EXPERIENCES

Finance

Career OptionsCareer Optionsƒ Accountingƒ Planningƒ Pricingƒ Treasuryƒ Business Developmentƒ Internal Audit Business Controls (IA&BC)

Organizational StructureOrganizational Structureƒ Corporateƒ Product Groups (z Series, i Series)ƒ Business Unit Headquartersƒ Marketingƒ Subsidiariesƒ Alliances/Joint Venturesƒ U.S. Accounting Centers

FinanceTYPICAL POSITIONS IN FINANCE

ƒ AccountingƒFinancial Analysis & Performance ReportingƒApplication of Accounting StandardsƒAnnual Report and Period Financial Statement PreparationƒOperational and Administrative Accounting

ƒ PlanningƒFocus on Financial/Business OperationsƒMeasurements/Budgeting/ForecastingƒOperations/Marketing/Sales Financial Planning and Analysis

ƒ PricingƒProduct PricingƒTransaction (Sales) Pricing, Special BidsƒInvestment Analysis, Analysis of Business Opportunities (Investments/Divestments)

ƒ Treasury /FinancingƒCash ManagementƒSource and Application of Funds AnalysisƒCash Flows/Future FinancingƒCustomer FinancingƒRisk Management/Hedging

ƒ Business Development/Investment AnalysisƒAcquisitions/Joint Ventures etc.

ƒ Internal Audit & Business Controls

Types of Types of JobsJobs

Manufacturing/Development Sites & Centralized Accounting Manufacturing/Development Sites & Centralized Accounting OperationsOperationsƒ Product Pricingƒ Financial Planningƒ Cost Accounting

ƒ General Accountingƒ Expense Planning

MarketingMarketing

ƒ Financial PlanningƒSales/MarketingƒRevenue/ProfitƒSpecial Bids

ƒ Resources/Expenseƒ Customer Offerings

ƒ Inventory Planningƒ Capital Planning

ƒ Marketing Campaignsƒ Advertising

Finance FINANCIAL CAREER PATHS

Site Cost Accounting

Accounting Site Budgeting

Treasury

Site Business Controls

Site Cost Accounting /

Business Controls Manager

HQ Portfolio Management/

Strategic Planning

Site Planning Manager

HQ Financial Analysts

Auditor

Treasury / Tax Team Leader

HQ Planning / Pricing Manager/Plan Coordinator

Division / GEO Consolidation

Financial Analysts

CHQ Financial Analysts

Audit Team Leader/ Manager

Senior Project Manager, i.e.

Alliance, Strategy

Division / GEO Consolidation

Manager

Site Controller

CHQ Lead Analysts

CHQ Pricing / Planning Manager

Accounting Functional Manager

International Tax / Treasury

Economics

IBM Controller

IBM Assistant Controller

Division / ISUCFO

S&D Director of Financial Planning

Division / MFG Controller

Director Pricing / Planning

Professional

Career

Advisor

Senior

Principal

Executive

MultipleMultiple

Divisions / GeographiesDivisions / Geographies

B.S.

MBA

Department Coordinator

Capital / MFG Planning

Pricing

Performance Measurements &

Forecasts for Business Area

FinanceTYPICAL INITIAL POSITIONS IN ACCOUNTING

Types of JobsTypes of JobsCorporate Americas/Product Groups/Division/Subsidiaryƒ Financial statement preparation and analysisƒ Services cost accounting/analysisƒ Revenue/cost analysisƒ Intercompany billing and controlƒ International assignment accountingƒ Foreign currency analysis including hedging or riskƒ Measurement report preparation

Manufacturing / Development Sites ( Manufacturing / Development Sites ( ¤ ¤ ) & ) &

U.S. Accounting Centers / Raleigh, NC /Endicott, NY ( U.S. Accounting Centers / Raleigh, NC /Endicott, NY ( • • ))ƒ General ledger accounting •ƒ Fixed assets accounting •ƒ Cost accounting ¤ƒ Inventory control ¤

ƒ Accounts Payable/Payroll operations •ƒ Balance Sheet Analysis ¤ •ƒ Income & Expense Analysis •ƒ Business Controls ¤ •

FinanceFINANCIAL ACCOUNTING PROCESS

Financial OrganizationsFinancial Organizationsƒ Business Unitsƒ Product Groupsƒ Sales & Distributionƒ Global Servicesƒ Subsidiariesƒ Corporate

Financial AccountingFinancial Accountingƒ Transaction/Event recording, classifying & interpretingƒ Selected account analysis

ƒRevenue /CostƒR&D/SG&AƒAccounts Receivable/InventoryƒForeign currency impacts

ƒ Financial Statement preparationƒFinancial operationsƒFinancial positionƒCash flows

ƒ GAAP & IBM practices complianceƒ FASB/EITFƒ AICPAƒ SEC

Financial ReportingFinancial Reportingƒ Internal measurement performanceƒ Public disclosures & filings

ƒEarnings release to media (quarterly)ƒ10-Q & 10-K SEC filingsƒAnnual report to shareholdersƒIBM Home Page on Internet (www.ibm.com)

FinanceFINANCIAL ACCOUNTING PROCESS

PLAN IMPACT

PLAN

ACTIONS

PROFITABILITY IMPACTS

PERIOD VIEWSTRATEGIC VIEW

PROGRAM VIEW

FINANCIAL PLANNING PRICING

ACTUALS

FORECASTS

MEASUREMENTS

PLAN

ACTUALS

ASSUMPTIONS

GAAP IMPACT

ACTIONS

ACCOUNTING

World's Largest IT Financing Organization:World's Largest IT Financing Organization:ƒ $35B in assets and $36B in financing originationsƒ Operating in more than 40 countries

Lines of BusinessLines of Businessƒ End User Financing

ƒTotal I/T related financing for end-usersƒIGF Finances IBM HW, SW, Services, OEM ƒTypical Terms: 24 - 60 monthsƒ$14B of originations in 2002

ƒ Commercial FinancingƒIGF funds inventory and A/R for IBM & OEM partners & suppliersƒTypical Terms: 30 - 120 daysƒ$23B of originations in 2002

ƒ Global Asset Recovery Services (GARS)ƒIndustry leader in managing returned, surplus, and idle I/T inventoryƒIGF sells and finances refurbished machines and partsƒ$1.3B of used equipment sales revenue in 2002

Finance IBM GLOBAL FINANCING

Career PathsCareer Pathsƒ Credit Operations - Performs our primary risk management

function, mitigating risk as "deals" are initiated and restructuring

collections when receivables become delinquent.

ƒ Pricing - Establishes the financial parameters, methodology, and

residual values for financial transactions and then structures

profitable customer "deals" using customer knowledge, portfolio

management, and leveraging contractual terms and conditions.

ƒ Accounting - Provides financial analysis and performance

reporting, applies financial accounting standards to business

decisions, and prepares financial statements and SEC filings.

ƒ Business Controls - Inspects the financial health of the business

through process standardization, proactive reviews, and audits.

ƒ Financial Planning - Integrates business information from

portfolio risk management through I&E, coverage and funding

strategy for business decisions in short term forecasts, plans, and

strategies.

Finance IBM GLOBAL FINANCING

Finance MENTORING

Mentoring is a way for more experienced employees to share Mentoring is a way for more experienced employees to share the benefits of their experience and insights with new or less the benefits of their experience and insights with new or less experienced employees. Mentoring relationships can be experienced employees. Mentoring relationships can be established informally or formally.established informally or formally.

A mentor serves as a role modelA mentor serves as a role modelƒ Meets with the employee on a regularly-scheduled basis (minimum of once

per quarter)ƒ Offers penalty free advice and counselƒ Provides candid feedback to menteeƒ May suggest methods for advancing mentee's growth and offer long term

career guidance

A mentee shouldA mentee shouldƒ Keep lines of communication open between manager and mentorƒ Ask questionsƒ Share ongoing career planning and developmentƒ Be open to the mentor's suggestionsƒ Consider having more than one mentor

Benefits to mentee:Benefits to mentee:ƒ Develop networksƒ Learn cultureƒ Receive career guidanceƒ Increased visibilityƒ Develop or enhance skills