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Finance

- It's Your Career -

Capitalize on the Challenges

Finan

ce WORLDWIDE ORGANIZATION

IBM



Latin American

Americas

Region

ƒ Argentina

USA Canada Latin America –Paraguay

–Uruguay

ƒ Caribbean - North

–Chile

–Colombia

–Ecuador

–Peru

–Bolivia

–Venezuela

–Latin Caribbean Region

ƒ Brazil

ƒ Mexico



Europe / Middle

East / Africa



North Region Nordic Region Central Region South Region West Region

ƒ United Kingdom ƒ Denmark ƒ Germany ƒ Italy ƒ France

ƒ Netherlands ƒ Finland ƒ Austria ƒ Portugal ƒ Belgium

ƒ Ireland ƒ Norway ƒ Switzerland ƒ Spain



ƒ South Africa ƒ Sweden ƒ Central and Eastern ƒ Greece

Europe, Middle East, ƒ Turkey

Africa ƒ Israel









Asia Pacific





Australia/New Greater China Japan Korea ASEAN

Zealand

ƒ China ƒ Indonesia

ƒ Hong Kong ƒ Malaysia

ƒ Taiwan ƒ Philippines



ƒ Singapore



ƒ Brunei



ƒ India



ƒ Sri Lanka



ƒ Thailand



ƒ Bangladesh



ƒ Vietnam

Finan

ce

FINANCE / MULTI-DIMENSIONAL EXPERIENCES







Sales & Distribution

Americas/

EMEA/AP Group









Brands Corporate Business Unit Site









Planning

Global Software

Services Group





Accounting Pricing







Technology System Global

Group Group Financing



Internal Audit

Treasury & Business

Type text here

Controls



Personal Enterprise

Systems on Business

Group Development

Demand

Finan

ce

Career Options

ƒ Accounting

ƒ Planning

ƒ Pricing

ƒ Treasury

ƒ Business Development

ƒ Internal Audit Business Controls (IA&BC)









Organizational Structure

ƒ Corporate

ƒ Product Groups (z Series, i Series)

ƒ Business Unit Headquarters

ƒ Marketing

ƒ Subsidiaries

ƒ Alliances/Joint Ventures

ƒ U.S. Accounting Centers

Finan

ceTYPICAL POSITIONS IN FINANCE

Types of Jobs

ƒ Accounting

ƒFinancial Analysis & Performance Reporting



ƒApplication of Accounting Standards



ƒAnnual Report and Period Financial Statement Preparation



ƒOperational and Administrative Accounting



ƒ Planning

ƒFocus on Financial/Business Operations



ƒMeasurements/Budgeting/Forecasting



ƒOperations/Marketing/Sales Financial Planning and Analysis



ƒ Pricing

ƒProduct Pricing



ƒTransaction (Sales) Pricing, Special Bids



ƒInvestment Analysis, Analysis of Business Opportunities (Investments/Divestments)



ƒ Treasury /Financing

ƒCash Management



ƒSource and Application of Funds Analysis



ƒCash Flows/Future Financing



ƒCustomer Financing



ƒRisk Management/Hedging



ƒ Business Development/Investment Analysis

ƒAcquisitions/Joint Ventures etc.



ƒ Internal Audit & Business Controls

Manufacturing/Development Sites & Centralized Accounting Operations

ƒ Product Pricing ƒ General Accounting ƒ Inventory Planning

ƒ Financial Planning ƒ Expense Planning ƒ Capital Planning

ƒ Cost Accounting



Marketing

ƒ Financial Planning

ƒSales/Marketing ƒ Resources/Expense ƒ Marketing Campaigns

ƒRevenue/Profit ƒ Customer Offerings ƒ Advertising



ƒSpecial Bids

Finan

ce FINANCIAL CAREER PATHS



Multiple

Divisions / Geographies



Executive



MBA

Principal IBM Controller





Division / GEO

Senior Consolidation

B.S. Manager



HQ Planning / IBM Assistant

Advisor Pricing Manager/ Controller

Plan Coordinator

Site Controller

Site Cost Accounting

Career / Business Controls

Manager

Division / GEO Division / ISU

Consolidation CFO

Professional Department Financial Analysts

CHQ Lead Analysts

Coordinator

HQ Portfolio

Site Cost Management/

Accounting Strategic Planning

S&D Director of

CHQ Financial

Financial Planning

Capital / MFG Analysts CHQ Pricing /

Planning Site Planning Planning Manager

Accounting Site

Manager

Budgeting





Audit Team Leader/ Division / MFG

Performance HQ Financial Accounting

Manager Controller

Measurements & Analysts Functional

Treasury Forecasts for Manager

Business Area



Auditor

Senior Project International Tax / Director Pricing /

Site Business Pricing Manager, i.e. Treasury Planning

Controls Treasury / Tax Alliance, Strategy Economics

Team Leader

Finan

ce

TYPICAL INITIAL POSITIONS IN ACCOUNTING







Types of Jobs

Corporate Americas/Product Groups/Division/Subsidiary

ƒ Financial statement preparation and analysis

ƒ Services cost accounting/analysis

ƒ Revenue/cost analysis

ƒ Intercompany billing and control

ƒ International assignment accounting

ƒ Foreign currency analysis including hedging or risk

ƒ Measurement report preparation









Manufacturing / Development Sites ( ¤ ) &

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 ¤ •

Finan

ceFINANCIAL ACCOUNTING PROCESS



Financial Organizations

ƒ Business Units

ƒ Product Groups

ƒ Sales & Distribution

ƒ Global Services

ƒ Subsidiaries

ƒ Corporate



Financial Accounting

ƒ Transaction/Event recording, classifying & interpreting

ƒ Selected account analysis

ƒRevenue /Cost



ƒR&D/SG&A



ƒAccounts Receivable/Inventory



ƒForeign currency impacts



ƒ Financial Statement preparation

ƒFinancial operations



ƒFinancial position



ƒCash flows



ƒ GAAP & IBM practices compliance

ƒ FASB/EITF

ƒ AICPA

ƒ SEC



Financial Reporting

ƒ Internal measurement performance

ƒ Public disclosures & filings

ƒEarnings release to media (quarterly)



ƒ10-Q & 10-K SEC filings



ƒAnnual report to shareholders



ƒIBM Home Page on Internet (www.ibm.com)

Finan

ceFINANCIAL ACCOUNTING PROCESS







ACCOUNTING





ACTUALS ACTUALS

MEASUREMENTS GAAP IMPACT









PLAN ACTIONS





FORECASTS ASSUMPTIONS









FINANCIAL PLANNING PRICING

PERIOD VIEW PROGRAM VIEW

STRATEGIC VIEW







PLAN IMPACT ACTIONS

PLAN PROFITABILITY

IMPACTS

Finan

ce IBM GLOBAL FINANCING

World's Largest IT Financing Organization:

ƒ $35B in assets and $36B in financing originations

ƒ Operating in more than 40 countries









Lines of Business

ƒ End User Financing

ƒTotal I/T related financing for end-users



ƒIGF Finances IBM HW, SW, Services, OEM



ƒTypical Terms: 24 - 60 months



ƒ$14B of originations in 2002



ƒ Commercial Financing

ƒIGF funds inventory and A/R for IBM & OEM partners & suppliers



ƒTypical Terms: 30 - 120 days



ƒ$23B of originations in 2002



ƒ Global Asset Recovery Services (GARS)

ƒIndustry leader in managing returned, surplus, and idle I/T



inventory

ƒIGF sells and finances refurbished machines and parts



ƒ$1.3B of used equipment sales revenue in 2002

Finan

ce IBM GLOBAL FINANCING

Career Paths

ƒ 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.

Finan

ce MENTORING





Mentoring is a way for more experienced employees to share

the benefits of their experience and insights with new or less

experienced employees. Mentoring relationships can be

established informally or formally.



A mentor serves as a role model

ƒ Meets with the employee on a regularly-scheduled basis (minimum of once

per quarter)

ƒ Offers penalty free advice and counsel

ƒ Provides candid feedback to mentee

ƒ May suggest methods for advancing mentee's growth and offer long term

career guidance



A mentee should

ƒ Keep lines of communication open between manager and mentor

ƒ Ask questions

ƒ Share ongoing career planning and development

ƒ Be open to the mentor's suggestions

ƒ Consider having more than one mentor



Benefits to mentee:

ƒ Develop networks

ƒ Learn culture

ƒ Receive career guidance

ƒ Increased visibility

ƒ Develop or enhance skills



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