© 2009 IBM Corporation

Our Success in Asia is in your hands

Janet Matton, Vice President, IBM Australia / New ZealandNovember 25th, 2009

© 2009 IBM Corporation2

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 Corporation3

An ordinary childhood leading to a global career

Born 1956 - out ofJoyce May Naismith - housewife / part-time worker / artist Reginald Charles Matton - Master Plumber & Builder

EducationRosanna State SchoolMacleod High SchoolSwinburne College - BCom, SW, RHwGL

Travel1973 – New Zealand1976 – Japan1977 – China1978 –> Everywhere !!

Career1973-1974 Melbourne Articles Clark, McNab & McNab1975-1978 Melbourne Swinburne1978-1983 Melbourne IBM Melbourne, Systems Engineer1983-1986 Canberra IBM Canberra, Manager1987-1995 Sydney IBM Sydney, Manager/Snr Manager / CIO1995-1998 CT/ NYC IBM USA, Manager Headquarters1998-2001 London IBM UK, Manager Europe2002-2004 Sydney IBM Sydney, Executive AN/Z 2004-2006 Tokyo IBM Asia, Executive Asia Pacific2007-2008 Shanghai IBM Asia, Executive Asia Pacific2009 - ?? Melbourne IBM Melbourne, Executive AN/Z

© 2009 IBM Corporation44

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

Innovation that can improve the way we work and live

IBM – a global innovation company

© 2008 IBM Corporation5

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

JapanJapan Asia PacificAsia 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 Corporation66

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 2040World’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

WuhanChengdu

Shenyang

Urimuqi

Nanjing

FuzhouChongqing

Changsha

Xian

Kunming

Hong Kong

Shanghai

Taiwan

BEIJING

Shenzhen Taipei

Software development lab

System and technology lab

ChinaChinaChina Taiwan Hong Kong

IBM China

© 2008 IBM Corporation7

Example of a globally integrated company – IBM Greater China Group provides expertise to the world

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 Corporation88

ASEANASEAN

Sales & DistributionBusiness Transformation ServicesIBM Software Lab

Regional Linux Technology Centers

IBM Research LabGlobal Service Delivery Centre

Disk & Tape Storage Systems Manufacturing

Integrated Supply Chain ManufacturingAP 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 ASEANThailand

Vietnam

Philippines

Indonesia

Singapore

Malaysia

Population 576 million World’s youngest workforce: By 2050 22% will be over 60 Vs 30-

40% in China, US & EU GDP: 1.4 Trillion

Singapore Malaysia Thailand Indonesia Philippines Vietnam

© 2008 IBM Corporation99

India / South AsiaIndia / 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 LabBangalore, Pune, Delhi

India Research LabDelhi, Bangalore

Application Services Bangalore, Pune, Gurgaon, Noida Chennai, Kolkata, Hyderabad

ITD – Global DeliveryBangalore, Chennai, Hyderabad

IBM Daksh & BTOBangalore, Delhi, Mumbai, Chandigarh,Pune, Kolkata, Chennai and Vizag

IBM India

India Population: 1.34 billionIndia GDP: 7.3%

Bangalore HQ

Chennai

HyderabadMumbai

Pune

Kolkata

NEW DELHI

Chandigarh

Ahmadabad

Colombo

Remote Sales office

Capital

Headquarters

© 2008 IBM Corporation10

Australia / New ZealandAustralia / 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

CANBERRASydney

Brisbane

Perth

AdelaideBallarat

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 Corporation11

IBM has evolved from a US multinational company to became aglobally 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 ShanghaiIn 2008 IBM formed the Growth Markets Unit with headquarters in Shanghai

65% of business outside USA in 2008

© 2008 IBM Corporation12

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-representedin 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 Corporation13

Thank youありがとう　ございま

した。