© 2009 IBM Corporation Our Success in Asia is in your hands Janet Matton, Vice President, IBM Australia / New Zealand November 25 th, 2009

© 2009 IBM Corporation 2  A career summary  IBM – a global innovation company  The essentials of a world wide business growing into Asia  The opportunity and the imperative Agenda 2

© 2009 IBM Corporation 3 An ordinary childhood leading to a global career Born 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 Zealand 1976 – Japan 1977 – China 1978 –> Everywhere !! Career Melbourne Articles Clark, McNab & McNab MelbourneSwinburne MelbourneIBM Melbourne, Systems Engineer CanberraIBM Canberra, Manager SydneyIBM Sydney, Manager/Snr Manager / CIO CT/ NYCIBM USA, Manager Headquarters London IBM UK, Manager Europe SydneyIBM Sydney, Executive AN/Z TokyoIBM Asia, Executive Asia Pacific ShanghaiIBM Asia, Executive Asia Pacific ?? MelbourneIBM Melbourne, Executive AN/Z

© 2009 IBM Corporation 4 4 We’ve only just begun to uncover what is possible on a smarter planet Smart Healthcare Smart Education Smart Energy Smart Transportation Smart Cities Smart Water Innovation that can improve the way we work and live IBM – a global innovation company

© 2008 IBM Corporation 5 Relocated AP Headquarters from Tokyo to Shanghai in 2007 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 JapanAsia Pacific  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  116,000 employees  Research Labs: 2  Software Development Labs: 8  Global Delivery Centers: 56  Average age 30

© 2008 IBM Corporation 6 6  26 branches  16,600 employees  10,000 business partners 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 Remote Sales office Capital Global Delivery Centre Application Services Research Lab Guangzhou Dalian Wuhan Chengdu Shenyang Urimuqi Nanjing Fuzhou Chongqing Changsha Xian Kunming Hong Kong Shanghai Taiwan BEIJING Shenzhen Taipei Software development lab System and technology lab China Taiwan Hong Kong IBM China

© 2008 IBM Corporation 7 Example of a globally integrated company – IBM Greater China Group provides expertise to the world Europe South America  Procurement  Research  IT Services  Business Transformation Services  Application Development  Accounts Payable North America S. Korea Russia Japan Asia Pacific Australia India UAE South Africa

© 2008 IBM Corporation 8 8 ASEAN Sales & Distribution Business Transformation Services IBM Software Lab Regional Linux Technology Centers IBM Research Lab Global Service Delivery Centre Disk & Tape Storage Systems Manufacturing Integrated Supply Chain Manufacturing AP Accounting/Fulfillment Center Regional Contact/Support Center Regional Radio Frequency Identification Device (RFID) Center  10,000 clients  4,200 business partners  16,200 IBMers – 67% working on global missions IBM ASEAN Thailand Vietnam Philippines Indonesia Singapore Malaysia  Population 576 million  World’s youngest workforce: By % will be over 60 Vs % in China, US & EU  GDP: 1.4 Trillion SingaporeMalaysiaThailandIndonesiaPhilippines Vietnam

© 2008 IBM Corporation 9 9 India / South Asia  85,000 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, India Software Lab Bangalore, Pune, Delhi India Research Lab Delhi, Bangalore Application Services Bangalore, Pune, Gurgaon, Noida Chennai, Kolkata, Hyderabad ITD – Global Delivery Bangalore, Chennai, Hyderabad IBM Daksh & BTO Bangalore, Delhi, Mumbai, Chandigarh, Pune, Kolkata, Chennai and Vizag IBM India India Population: 1.34 billion India GDP: 7.3% Bangalore HQ Chennai Hyderabad Mumbai Pune Kolkata NEW DELHI Chandigarh Ahmadabad Colombo Remote Sales office Capital Headquarters

© 2008 IBM Corporation 10 Australia / New Zealand  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. Christchurch  1,000+ employees  12 locations  Access to a network of 1,000+ partners Melbourne Hobart CANBERRA Sydney Brisbane Perth Adelaide Ballarat Gold Coast Darwin Auckland WELLINGTON IBM Australia Australia – population 21.8 million, GDP growth 2.2% New Zealand – 4.2 million, GDP growth 0.2% Remote Sales office Capital IBM New Zealand

© 2008 IBM Corporation 11 IBM has evolved from a US multinational company to became a globally integrated enterprise in order to capture the greatest growth opportunities. 71%29% Employees in Asia 15,000 Approx employees in Australia & NZ >300 Australia & NZ employees working across Asia In 2008 IBM formed the Growth Markets Unit with headquarters in Shanghai 65% of business outside USA in 2008

© 2008 IBM Corporation 12 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-represented in 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

© 2008 IBM Corporation 13 Thank you ありがとう ございま した。