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Legal Statement

Today’s IBM has defined a clear strategy to lead in the era of hybrid cloud and AI.

In 2021, we took a series of dramatic steps to execute against that strategy, strengthening our portfolio, expanding our partner ecosystem, and returning your company to growth.

As a result, we enter 2022 more strategically focused and more technologically capable. We are integrating technology and expertise—from IBM, our partners, and even our competitors—to meet the urgent needs of our clients, who see hybrid cloud and AI as crucial sources of competitive advantage. And we are ready to be the catalyst of progress for our clients as they pursue the digital transformation of the world’s mission-critical businesses.

As you will see in this report, our strategy is resonating with clients and partners, our technology and business expertise are in high demand, and our company is more nimble, focused, and positioned for sustainable growth.

2021 performance

For the year, IBM generated $57.4 billion in revenue and $12.8 billion in cash from operations.

Revenue growth accelerated at constant currency throughout 2021, and we exited the year with 8.6% growth in the fourth quarter, including approximately 3.5 points from incremental external sales to Kyndryl. Hybrid cloud revenue grew 19% at constant currency in 2021 and now makes up 35% of IBM revenue. Today, over 70% of our annual revenue is in software and consulting, both delivering healthy, sustainable growth.

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