Smart Solutions of the future start today

Dragutin IvaciSWG Director, IBM EE/A

100 Years of Innovations

IBM history is 100 years of innovations in IT • Innovations in products and services• Innovations in business processes• Innovations in business models

100 years IBM helps in transformation of business and Societies as a whole

• 1890: The Hollerith Machine• 1928: The IBM Punched Card• 1945: The First Commercial Electronic Calculator• 1951: Magnetic Tape Storage• 1966: DRAM – The Invention of On-Demand Data• 1967: Fractal Geometry • 1970: Relation Database• 1973: UPC – The Transformation of Retail• 1981: The PC – Personal Computing comes of Age• 1981: Scanning Tunneling Microscope • 1997: Deep Blue

Smart Solutions of the future - start todaySmarter changes need Smart ideas • Smart Industry Solutions• Smart Infrastructure Solutions• Smart Technologies and experts

100 Years thought IBM Leadership!• Knowledge and experience• Innovations and capability: technologies, experts, business partners• Practice of projects implementation in different industries world wide100 Years IBM business is about customers value! to build platform for the future Smart Modernization: • Turning Information into Insights• Drive Business Integration and Optimization• Connect and Collaborate• Enable Product and Service Innovation• Optimize the impact of business infrastructures and services• Manage Risk, Security, and Compliance• Utilize local and world wide best practices across the industries

100 Years - just a beginning of the way!

-> Delivering Truly Integrated and High-Value Offerings for Industries-> Combining capabilities across IBM software, hardware & services

Banking and Financial Markets

Communications

Electronics, Automotive and Aerospace

Energy and Utilities

Government

Healthcare

Insurance

RetailTravel and Transportation

Oil and Gas

We are in the business of applying technologyto solve business problems

Emergence of Social Business Making the right connections enables smarter financial services

Increased innovation and faster execution through dynamic networks of co-workers, partners and customers

Financial services

Analyzing and Optimizing the Physical WorldPredictive analytics makes transportation smarter

18% reductionin peak traffic volumes

Public transit increased by 80,000 passengers per day

Streaming analytics provide real-time travel info

Transportation

Smart Industry Solutions in action

IBM Analytics Streamlines Processes For Russian Prosecutor General's OfficeThe system is designed to streamline the work of employees of the Prosecutor General's office by consolidating operations and providing an extensive regional network that carries out business inspections in all Russian regions. The new system is part of the Russian Government's strategy to ensure transparency and openness of business inspections.

Russian Hospitals Digitize Medical Information, Improve Access to Patient Data With IBM TechnologyHospitals throughout Russia have switched from paper-based medical systems to a new Lotus notes/Domino based solution from IBM and Complex Medical Information Systems (C-MIS) to provide fast electronic medical record exchange and unified access to many types of healthcare data, allowing doctors and medical staff to share information and access tests and lab results instantly to improve decision making. The system was first used at the Municipal S.Z. Fisher Hospital No. 1 in Volzhsky in the Volgograd region of Russia. Similar projects are now underway at other public hospitals throughout Russia including Leningrad, Kirov, Pskov and Vladimir regions, Republics of Khakassia and Udmurtia, Perm Territory and Moscow.

NOVATEK completes automated consolidation systems project for financial reportingThe completion of the project provides NOVATEK with a fully automated system for preparing consolidated financial statements under International Financial Reporting Standards (IFRS). The new system significantly reduces the time required for the Company to prepare its quarterly and annual IFRS consolidated financial statements while at the same time optimizing resource allocation and providing the ability to monitor task completion.

As the world’s largest business software company, IBM is helping organizations of all sizes tackle their most important business needs*

Turn information into insights

Drive business integration and optimization

Connect and collaborate

Enable product and service innovation

Optimize the impact of business infrastructures and services

Manage risk, security, and compliance

New Challenges

15 petabytesof new information being

generated every day

80%of digital data

will be “unstructured”

19+ hoursspent searching for the right

information each week

$5.3 milliona company loses annually by

not finding the right information

70¢ per $1spent on maintaining current IT

infrastructures versus adding new capabilities

25 billionmarket data messages handled each day

across global trading systems

ConnectionsData Complexity

IBM solutions are built on a core set of software capabilities

Social Business Application DevelopmentSocial CollaborationUnified CommunicationsWeb Experience

Connect and Collaborate

Application InfrastructureBusiness Process ManagementCommerceConnectivity and IntegrationEnterprise Marketing Management

Drive Business Integration and Optimization

Business AnalyticsData ManagementData WarehousingEnterprise Content ManagementInformation GovernanceInformation Integration and Federation

Turning Information into Insights

Application and ProcessData and InformationNetwork, Server, and EndpointPeople and IdentifyPhysical Infrastructure

Manage Risk, Security, and Compliance

Asset ManagementBusiness Service ManagementCloud and Virtualization Management Network and Service AssuranceSecurityStorage ManagementSystems Management

Optimize the impact of business infrastructures and services

Application Lifecycle ManagementComplex and Embedded SystemsDesign and DevelopmentEnterprise Architecture and Portfolio ManagementEnterprise ModernizationSecurity

Enable Product and Service Innovation

2010: Key IBM Software Group acquisitions

More rapidly respond to customer needs

Improve competitiveness product, people, channels

Increased revenue and profit achieve business case

January 2010 November 2010 October 2010 July 2010

12

IBM Acquires Netezza

ARMONK, N.Y. – 11 November 2010: IBM (NYSE: IBM) today announced the closing of its acquisition of Netezza Corporation.

"Every single department from finance to marketing is tapping into the capabilities of analytics to draw meaningful insights. The addition of Netezza will . . . bring the power of analytics right into the hands of business users at every level.“ – Arvind Krishna, general manager, Information Management, IBM Software Group

Netezza expands IBM's business analytics initiatives to help clients gain faster insights into their business information, with increased performance at a lower cost of ownership.

Netezza data warehouse appliances bring analytics directly into the hands of business users within every department of an organization – sales, marketing, product development and human resources.

The simplicity of deploying Netezza appliances makes the technology ideal for the needs of high-performance analytics, requiring minimal administration and IT skills, and enables clients to run complex data queries within days of deploying the solution.

13

IBM Acquires Unica Corporation

• IBM is acquiring enterprise and cloud-based marketing software solutions that help businesses streamline and automate marketing processes, and understand and predict customer preferences.

• Through both the Unica and Coremetrics acquisitions, IBM will enable its clients to develop more relevant and targeted communications while minimizing marketing expenditures.

• Together with IBM's WebSphere Commerce software, the company's recent acquisitions of Sterling Commerce, Coremetrics, and now Unica enhance its ability to offer the technologies marketing organizations need to streamline, automate, and optimize mission-critical business processes – awareness and demand generation, sales process automation, order processing and fulfillment.

ARMONK, N.Y. – 6 October 2010: IBM (NYSE: IBM) today announced the closing of its acquisition of Unica Corporation.

"IBM is committed to helping CMOs address the challenges facing marketing organizations today. Together, the Unica and Coremetrics acquisitions help deliver the customer insight our clients demand, along with the measurable results they are seeking across sales channels.” – Craig Hayman, general manager, IBM Industry Solutions

14

IBM Acquires Big Fix, Inc.

• BigFix will become part of IBM Software Group – helping organizations more intelligently secure the enterprise by managing and automating security and compliance updates on thousands of computers around the globe.

• BigFix software is critical to IBM's automation portfolio that controls the ever-expanding data center, including PCs and laptops, in addition to servers, software, storage and physical assets as diverse as cellular sites, water mains and manufacturing equipment.

• BigFix software has built-in intelligence that identifies which devices are not in compliance with policies and recommends security fixes and timely software updates to up to 500,000 machines in a matter of minutes.

ARMONK, N.Y. – 20 July 2010: IBM (NYSE: IBM) today announced that it had completed the acquisition of BigFix, Inc., a privately-held company based in Emeryville, Calif.

"IBM is focused on delivering a simplified and automated approach to managing and securing the IT infrastructure. With BigFix software integrated with IBM software offerings, IBM clients will be able to more easily manage and secure their PCs and laptops, a complex task as the costs and risks associated with security threats continue to grow.” – Steve Robinson, general manager, IBM Security Solutions.

15

IBM Acquires Lombardi

• Lombardi, a leading provider of Business Process Management (BPM) software and services, helps organizations automate and integrate business processes to increase efficiencies and reduce costs.

• Lombardi adds a new dimension to IBM's enterprise-wide BPM capabilities by giving organizations the ability to quickly adjust their business processes to support sudden and changing needs, especially those that rely heavily on collaboration to complete a task or project.

ARMONK, N.Y., - 26 Jan 2010: IBM (NYSE: IBM) today announced the closing of its acquisition of Lombardi, a privately held software company based in Austin, Texas.

"2010 will be the year business process management goes mainstream. With Lombardi now part of the IBM family, we look forward to taking our strengthened capabilities to the marketplace and delivering business transformation to our customers." – Craig Hayman, general manager, IBM Application and Integration Middleware

IBM Software is delivering critical smarter planet capabilities

Industry Solutions

Strategic Business Drivers

Servers, storage, communication networks and associated services

Industry Frameworks

IBM Software

Specific Business Problem

IBMSoftwareIndustrySolutionproducts

Built onIBM

middleware

Models and ToolsProcess model and flowsInformation modelsDesign templatesRe-usable code assetsIndustry standardsCommon services

The Value of Transforming Business and Industry

The New ROI Operational value: Increase financial returns

Strategic value: Build new platforms for innovation

Brand value: Improve reputation and ability to attract

talent

Societal value: Create environmental benefits, reduce

crime rates, improve health outcomes

All deliver positive outcomes for your business