First Quarter
2025 Earnings

August 1, 2024

Disclaimers
Forward-looking statements
This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements often contain words suchas “aim,” “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “opportunity,” “plan,” “position,” “predict,” “project,” “should,” “seek,” “target,” “will,” “would”
and other similar words or expressions or the negative thereof or other variations thereon. All statements, other than statements of historical fact, including without limitation, statements
concerning the Company’s plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends,
including without limitation the information presented in the outlook section of this presentation (which does not assume any acquisitions or divestitures), may be forward-looking statements.
These statements do not guarantee future performance and speak only as of August 1, 2024, and the Company assumes no obligation to update its forward-looking statements, except as
required by law. Actual outcomes or results may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others: failure to
attract new customers, retain existing customers or sell additional services to customers; failure to meet growth and productivity objectives; competition; impacts of relationships with criticalsuppliers and partners; failure to address and adapt to technological developments and trends; inability to attract and retain key personnel and other skilled employees; impact of economic,
political, public health and other conditions; damage to the Company's reputation; inability to accurately estimate the cost of services and the timeline for completion of contracts; service delivery
issues; the Company's ability to successfully manage acquisitions and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities and higher debt
levels; the impact of our business with government customers; failure of the Company's intellectual property rights to prevent competitive offerings and the failure of the Company to obtain, retainand extend necessary licenses; the impairment of our goodwill and long-lived assets; risks relating to cybersecurity, data governance and privacy; risks relating to non-compliance with legal andregulatory requirements; adverse effects from tax matters and environmental matters; legal proceedings and investigatory risks and potential indemnification obligations; impact of changes inmarket liquidity conditions and customer credit risk on receivables; the Company's pension plans; the impact of currency fluctuations; risks related to the Company’s spin-off from International
Business Machines Corporation (“IBM”); and risks related to the Company's common stock and the securities market; and other factors described in the “Risk Factors” section of the Company’s
Annual Report on Form 10-K for the fiscal year ended March 31, 2024 filed with the Securities and Exchange Commission (the “SEC”) on May 30, 2024, as such factors may be updated fromtime to time in the Company’s subsequent filings with the SEC.
Non-GAAP financial measures
Financial information contained in this presentation includes certain financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally
accepted accounting policies in the United States of America (GAAP), such as adjusted EBITDA, adjusted pretax income (loss), adjusted net income (loss), adjusted EPS, adjusted EBITDA
margin, adjusted pretax margin, adjusted net margin, net debt, adjusted free cash flow and constant currency, which include or exclude certain items from the most directly comparable GAAP
financial measure. These non-GAAP measures differ from reported GAAP measures and are intended to illustrate what management believes are relevant period-over-period comparisons andare helpful to investors as an additional tool for further understanding and assessing Kyndryl's expected ongoing operating performance. Exclusion of items in our non-GAAP presentation should
not be considered an inference that these items are unusual, infrequent or non-recurring. Definitions of the non-GAAP measures are included in the appendix of this presentation. A reconciliationof non-GAAP financial measures for historical periods to the most directly comparable GAAP financial measure appears in the appendix to this presentation. Any non-GAAP financial measureused in this presentation is in addition to, and not meant to be considered superior to, or a substitute for, measures prepared in accordance with GAAP. A reconciliation of forward-looking nonGAAP financial information is not included in this presentation because the Company is unable to predict with reasonable certainty some individual components of such reconciliation without
unreasonable effort. These items are uncertain, depend on various factors and could have a material impact on future results computed in accordance with GAAP. Additionally, certain amounts
may not add due to the use of rounded numbers; percentages presented are calculated based on the underlying amounts.

2

Speakers

Lori Chaitman, Global Head of Investor Relations

Martin Schroeter, Chairman and Chief Executive Officer

David Wyshner, Chief Financial Officer

3

Continuing to build a strong track record of successful execution
Progress on
our financials
Progress on
our differentiation

Progress on
our 3A’s

Progress on
our culture

Signings

Earnings

Cash flow

Up 7% in LTM,
with 9% projected pretax margins

Expect FY25 adjusted pretax income up
at least $295M year-over-year

Expect ~$300M of adjusted
free cash flow in FY25

Kyndryl Consult

Kyndryl Bridge

Double-digit revenue growth
expected in FY25

Delivering AI-enabled insights
and resiliency to customers

Alliances

Accounts

Advanced Delivery$210M hyperscaler revenue in Q1;
FY25 target of nearly $1B$725M annualized profit in Q1;
FY25 target of $850M$650M annualized savings in Q1;
FY25 target of $750M

The Kyndryl Way
Operating ‘flat, fast and focused’

Capitalizing on opportunities and executing a strategy that is unique to us and driving profitable growth
Kyndryl’s fiscal year 2025 ends on March 31, 2025; latest twelve months’ (LTM) signings growth measured in constant currency

4

Kyndryl enables customers to address secular IT trends
Secular trends driving demand for our capabilities
Artificial
intelligence

Cybersecurity risks

Mission-critical expertise in hybrid environments
Mainframe modernization services

Cloudmigration

Cloud migration, management and optimization
Data architecture and AI readinessIndustry-wideskills shortages

Security and resiliency capabilities

Modernizing
complex environments

Ability to deliver scale benefits
New ways of working

Secular IT trends, combined with our capabilities and market position, are fueling our long-term growth5

Kyndryl Consult is positioned at the nexus of numerous secular trends

Artificial
intelligence

Cybersecurity risks

Providing world-class, hybrid solutions, bolstered by ourhyperscaler and global technology alliances
Meeting customer demand for infrastructure and application
expertise, specialized skills, scale and innovation

Cloud
migration
Industry-wideskills shortages

Addressing growing need for cybersecurity embedded in
IT development, applications and operations
Regulatory change increasing demand for cybersecurity,
resiliency and compliance expertise

Modernizing
complex environments

Advent of AI and genAI making data architecture a priority
Kyndryl Bridge leveraging operational data to produce
actionable insights and demand for Consult

Our leadership and capabilities will drive Kyndryl Consult’s strong growth trajectory6

Kyndryl Bridge accelerates value with AI

Strengthen
security posturePowerinsights
with AI

3.5 million

Managespend

Monthly AI-generated
actionable insights

Optimize
operations

113 million
Monthly automatedactions$2.8 billion
Accelerate app
modernization

Operatesustainably

Annual incremental value
for customers1

Leveraging our unique IP and unparalleled operational data to drive business outcomes
1 Including reduced planned and unplanned downtime

7

Our evolving business mix is driving increased profitability and free cash flow
Mix of post-spin signings in our revenue 1

Adjusted pretax income / margin 2
High-singledigit margins

1%

5%

20%

33%
50%
67%

99%

85%
95%

80%

$165M
33%
15%

1Q
2022

Fiscal2023

At least
$460M

67%
50%

Calendar2021

Post-spinsignings(highermargin)

Fiscal2024
2024E

Fiscal2025E

Fiscal
2026E

Today

Pre-spinsignings(lowermargin)($217M)

Fiscal2027E

Fiscal2023

Fiscal2024

Fiscal2025E

Fiscal2026E

Fiscal2027E

Strong conversion of
earnings to free cash flow

Driving powerful dynamics for near-term and medium-term value creation . . . and sustainable long-term growth
1 Mix of post-spin signings in our revenue are approximate
2 Fiscal 2025E amount includes workforce rebalancing charges; fiscal 2023 and 2024 amounts exclude such charges

88Increasing demand forcloud, security, data and AI
services (secular trends)(in constant currency)

Year-over-year revenue growth

Kyndryl’sgrowth
growthtrajectory
trajectory
Kyndryl’s
Gaining market
share in growing
markets

Growing shareof wallet
Revenue inflection,with third-party content
reductions largely done0%

Return torevenue growthin fiscal 4Q25

Exiting low-margin revenue

Spin
Spin

NovemberNovember
2021
2021

Fiscal2025E
FiscalFiscal

2023

2024

Today

Seizing opportunities to accelerate our top line and inflecting to revenue growth
Graph is illustrative and not to precise scale9Financial highlights

Results reflect continued progress and strong execution

Alliances, Advanced Delivery and Accounts driving significant margin expansion

Robust balance sheet, strong liquidity and full-year free cash flow

Projecting substantial earnings growth for fiscal year 2025

We design, build, manage and modernize the mission-critical systems that the world depends on
10

Fiscal first quarter 2025 financial highlights
Quarterly revenue by segment($ in millions)

Quarter ended
June 30, 2024

Quarter ended
June 30, 2023

$3,739$4,193

(8%)

(1%)

$556

$612

Adjusted EBITDA margin

14.9%

14.6%

Adjusted pretax income

$92

$47

Adjusted pretax margin

2.5%

1.1%

Revenue
Growth, in constant currency
Adjusted EBITDA($ in millions)
Strategic
Markets$869

United States
$986

$569
$1,315Japan
Principal
Markets

Our results for the quarter reflect solid operational execution, led by our three-A initiatives and Kyndryl Consult
Principal Markets is comprised of Kyndryl’s operations in Canada, France, Germany, India, Italy, Spain/Portugal and the United Kingdom/Ireland. Strategic Markets is comprised of Kyndryl’s operations in all other geographic
locations. Kyndryl’s operations in Australia/New Zealand transitioned from Principal Markets to Strategic Markets in the quarter ended June 30, 2024; historical segment information has been updated to reflect this change
Revenue growth (year-over-year) as reported was (11%) in the quarter ended June 30, 2024 and (2%) in the quarter ended June 30, 2023
See appendix for reconciliation of non-GAAP metrics

11Strong projected margins on signings support our medium-term goals

Gross margin

Gross profit book-to-bill 1

expected on post-spin signings
26%

26%

26%

Pretax marginexpected on post-spin signings

1.2x

1.1x

1.1x

9%

9%

9%
Supports our
high-single-digit
margin target

Fiscal2023

Fiscal
2024

LTM
June
2024

Fiscal2023

Fiscal
2024

LTM
June
2024

Fiscal2023

Fiscal
2024

LTM
June
2024

The stronger margin profile of our post-spin signings is driving substantial earnings growth
1 Our gross profit book-to-bill is defined as our projected gross profit on signings during the trailing twelve months divided by our actual gross profit for the same period

12Strong balance sheet metrics and cash flow seasonality
Adjusted free cash flow

Balance sheet and cash flow metrics($ in millions, three months ended June 30)

$4.4B

$1.3B

Available liquidity1

Cash

$3.2B

$2.0B

Debt

Net debt($48M)
Adjusted
pretax income

Adjusted
free cash flow 2

Cash flow from operations(three months ended June 30)

Expecting ~$300 million adjusted free cash flow in fiscal 2025 and are on a solid financial footing to execute our strategy
1 Consists of $1.3B of cash and $3.2B of undrawn senior unsecured credit facility, and rounding
2 Adjusted free cash flow: Cash flow from operations (GAAP) ($48M), plus workforce rebalancing payments related to prior period programs $21M, transaction-related payments $5M, significant litigation

costs $4M, less net capital expenditures $98M
See appendix for reconciliation of non-GAAP metrics

13

Fiscal 2025 outlook
Fiscal 2025 outlook

Comments

Revenue(2%) to (4%) growth in constant currency;
implies revenue of $15.2 to $15.5 billion basedon recent exchange rates•

Constant-currency revenue growth in Q4

Adjusted EBITDA margin

At least 16.3%; increase from May outlook ofat least 16.2%•

Year-over-year increase of at least 160 basis points

Adjusted pretax income

At least $460 million; increase from May
outlook of at least $435 million•

Year-over-year increase of at least $295 million

Adjusted free cash flow

Approximately $300 million••

Cash taxes of ~$150 million
Net capital expenditures of ~$700 million

Focused on driving innovation, expanding margins and returning to revenue growthBased on recent exchange rates, currency effects are currently expected to unfavorably impact revenue by $220M, adjusted EBITDA by $90M and adjusted pretax income by $75M year-over-year;
Depreciation expense projected to be ~$700M; amortization expense of transition cost and prepaid software projected to be ~$1.2B; interest expense projected to be ~$120M.
Outlook includes ~$100M of workforce rebalancing costs and ~$50M net depreciation benefit

14

Investment highlights



The world leader in designing, building, managing and modernizing mission-criticalinformation systems

Independence doubled our addressable market, which will continue to grow due to numerous
interrelated tailwindsCompetitive advantage stems from our people, data and intellectual property, making us atrusted long-term partner to thousands of blue-chip enterprise customers



Investing for growth and expanding our ecosystem of strategic partners and service capabilities,
enhancing customers' access to a wider range of technology solutions



Uniquely well-positioned to enable our customers to harness key secular trends like cloud
migration, hybrid environment optimization and use of data and AI in core processes



Earnings accelerating due to strong execution and more revenue coming from higher-margin,
post-spin signingsStrong financial characteristics with annuity-like annual revenues, double-digit adjusted EBITDA
margins and investment-grade credit ratings

Focused, growth-oriented culture, committed to high corporate citizenship standards and led bya highly experienced executive team15

Our services
Practice

Overview

Cloud

Delivering seamless, integrated, multicloud management in a
hybrid model

34%

Delivering full line of cybersecurity, business continuity and disasterrecovery services to help customers continuously adapt to new
threats and regulatory standards

14%

Security &Resiliency

Diversified sourcesof revenue

Revenue

Technology, media
and telecom

16%

PublicNetwork & Edge

Providing unified network services for cloud and data center
connectivity

Financialservices

11%

8%

Revenuemix byindustry

45%

13%Applications,
Data & AI

Providing full application platform hosting and expert assistance forapplication modernization

6%

DigitalWorkplace

Enhancing user experience and work location flexibility byproviding a consumer experience to employees

7%Core Enterprise& zCloud

Providing secure, unified and fault-tolerant mainframe services forour customers’ core infrastructure

32%

Approximate revenue based on twelve months ended June 30, 2024
Industry revenue mix is approximate

Industrials

15%
Retail andtravel17

Fiscal first quarter 2025 adjusted pretax income and adjusted EBITDA($ in millions)

Pretax
Pretaxincomeincome(loss)
as reported
as reported

1

Adjusted
pretaxincome2

3

Adjusted
EBITDA

1 Effects of amortization of acquisition-related intangible assets, stock-based compensation, pension costs other than pension servicing costs and multi-employer plan costs, significant litigation costs and benefits,charges related to ceasing to use leased/fixed assets and lease terminations, and currency impacts of highly inflationary countries
2 Includes amortization of capitalized software costs and excludes depreciation of operating right-of-use assets
3 Amortization of transition & transformation costs and prepaid software

18

Fiscal first quarter 2025 adjusted EBITDA and adjusted free cash flow($ in millions)

Adjusted
EBITDA

1

Adjusted
free cash flow

Deferredcost outlays22
3

1 Net capital expenditures compare to depreciation of $127M
2 Deferred costs offset amortization of prepaid software and transition costs of $310M
3 Includes annual software license payments and annual compensation payments made in the first quarter

19

Definitions and rationale for non-GAAP metrics
We present certain non-GAAP financial measures to provide useful supplemental information to investors. We provide these non-GAAP financial measures as we believe it enhances investors' visibility to management decisions andtheir impacts on operational performance; enables better comparison to peer companies; and allows us to provide a long-term strategic view of the business going forward.
Adjusted EBITDA and adjusted EBITDA margin
Adjusted EBITDA is defined as net income (loss) excluding net interest expense, income taxes, depreciation and amortization (excluding depreciation of right-of-use assets and amortization of capitalized contract costs), charges
related to ceasing to use leased/fixed assets, charges related to lease terminations, transaction-related costs (benefits), pension costs other than pension servicing costs and multi-employer plan costs, stock-based compensation
expense, workforce rebalancing charges incurred prior to March 31, 2024, impairment expense, significant litigation costs and benefits, and currency impacts of highly inflationary countries. Adjusted EBITDA margin is calculated by
dividing adjusted EBITDA by revenue.
Adjusted pretax income (loss) and adjusted pretax margin
Adjusted pretax income (loss) is defined as pretax income (loss) excluding transaction-related costs (benefits), charges related to ceasing to use leased/fixed assets, charges related to lease terminations, pension costs other thanpension servicing costs and multi-employer plan costs, stock-based compensation expense, amortization of acquisition-related intangible assets, workforce rebalancing charges incurred prior to March 31, 2024, impairment expense,
significant litigation costs and benefits, and currency impacts of highly inflationary countries. Adjusted pretax margin is calculated by dividing adjusted pretax income (loss) by revenue.
Adjusted net income (loss), adjusted net margin and adjusted earnings per share (EPS)
Adjusted net income (loss) is defined as adjusted pretax income (loss) less the reported provision for income taxes, minus or plus the tax effect of the non-GAAP adjustments made to calculate adjusted pretax income (loss), andexcluding exceptional items impacting the reported provision for income taxes. Adjusted net margin is calculated by dividing adjusted net income, as defined above, by revenue. Adjusted earnings per share (EPS) is defined as
adjusted net income divided by diluted weighted average shares outstanding to reflect shares that are dilutive or anti-dilutive based on the amount of adjusted net income.
Constant-currency
Constant-currency information compares results between periods as if exchange rates had remained constant period over period. We define constant-currency revenues as total revenues excluding the impact of foreign exchange
rate movements and use it to determine the constant-currency revenue growth on a year-over-year basis. Constant-currency revenues are calculated by translating current period revenues using corresponding prior-period
exchange rates.
Net debt
Net debt is defined as total debt less cash and cash equivalents. Management uses net debt to evaluate its leverage.
Adjusted free cash flow
Adjusted free cash flow is defined as cash flows from operating activities after adding back transaction-related payments, charges related to lease terminations, payments related to workforce rebalancing charges incurred prior to
March 31, 2024, and significant litigation payments, less net capital expenditures. Management uses adjusted free cash flow as a measure to evaluate its operating results, plan strategic investments and assess our ability and needto incur and service debt. We believe adjusted free cash flow is a useful supplemental financial measure to aid investors in assessing our ability to pursue business opportunities and investments and to service our debt.
Signings and gross profit book-to-bill
Signings are defined by Kyndryl as an initial estimate of the value of a customer’s commitment under a contract. The calculation involves estimates and judgments to gauge the extent of a customer's commitment, including the typeand duration of the agreement as well as the presence of termination charges or wind-down costs. Contract extensions and increases in scope are treated as signings only to the extent of the incremental new value. Signings canvary over time due to a variety of factors including, but not limited to, the timing of signing a small number of larger outsourcing contracts, as well as the length of those contracts. The conversion of signings into revenue may vary
based on the types of services and solutions, customer decisions and other factors, which may include, but are not limited to, macroeconomic environment or external events. Our gross profit book-to-bill is defined as our projected
gross profit on signings for the trailing twelve months divided by our actual gross profit for the same period. Management uses signings and gross profit book-to-bill as tools to monitor the performance of the business including thebusiness' ability to attract new customers and sell additional scope into our existing customer base.

20

Reconciliation of non-GAAP metrics
Reconciliation of adjusted pretax income (loss)
to adjusted net income and adjusted EPS(in millions, except per-share amounts)

Reconciliation of net income (loss)
to adjusted pretax income (loss)
and adjusted EBITDA

Net income (loss) (GAAP)
Plus: Provision for income taxes
Pretax income (loss) (GAAP)1

Three months
ended
June 30, 2024

Three months
ended
June 30, 2023

$11($141)

53

32

$64

($109)

Workforce rebalancing charges incurred prior to
March 31, 2024
Charges related to ceasing to use leased/
fixed assets and lease terminations

Three months
ended
June 30, 2023

Adjusted pretax income (non-GAAP)

$92

$47

Provision for income taxes (GAAP)

(53)

(32)

(8)

(15)

$31

$0

Tax effect of non-GAAP adjustments
Adjusted net income (non-GAAP)
Diluted weighted average shares outstanding

235.8

227.9

Diluted earnings per share (GAAP)

0.05(0.62)

$0.13

$0.00

Three months
ended
June 30, 2024

Three months
ended
June 30, 2023($48)($173)

Adjusted EPS (non-GAAP)

Non-operating adjustments (before tax)

Three months
ended
June 30, 2024

–

58

9

10

Reconciliation of cash flow from operations to adjusted
free cash flow

Transaction-related costs

20

42

Cash flow from operations (GAAP)

Stock-based compensation expense24

22

Plus: Transaction-related payments

542

Amortization of acquisition-related intangible assets

7

8

Other adjustments2

(32)

16

Plus: Workforce rebalancing payments related tocharges incurred prior to March 31, 2024

21

79

$92

$47

Plus: Significant litigation payments

433

Plus: Payments related to lease terminations–

7

Adjusted pretax income (non-GAAP)
Adjusted pretax margin

2.5%

1.1%

Interest expense28

29

Depreciation of property and equipment, andcapitalized software
Amortization of transition costs and prepaid software

127

210

310

325

$556

$612

Net income (loss) margin

0.3%(3.4%)

Adjusted EBITDA margin

14.9%

14.6%

Revenue (GAAP)$3,739$4,193Adjusted EBITDA (non-GAAP)

Less: Net capital expenditures

(98)

(94)

Adjusted free cash flow (non-GAAP)($116)($106)

Reconciliation of net debt

Balance as ofJune 30, 2024

Short-term debt

$130Long-term debt
Total debt

3,109
$3,239

Cash

1,269

Net debt$1,971

Numbers may not add due to rounding
1 Includes lower depreciation expenses resulting from the change of useful life of information technology equipment effective April 1, 2024 (a net year-over-year benefit of $60 million)
2 Other adjustments represent pension costs other than pension servicing costs and multi-employer plan costs, significant litigation costs and benefits, and currency impacts of highly inflationary countries

21Segment information(in millions)Fiscal 2023

Fiscal 2024

June 30,
2022

Sept. 30,
2022

Dec. 31,2022

March 31,2023

Fiscal year
ended
March 31,2023

United States$1,168$1,149$1,265$1,145$4,726$1,164$1,108$1,032$990$4,295

Japan

634

614

606

648

2,502

610

569

581

584

2,344

Principal Markets

1,404

1,373

1,379

1,401

5,556

1,391

1,376

1,361

1,350

5,479

Strategic Markets

1,082

1,043

1,053

1,062

4,241

1,027

1,019

962

926

3,934

United States

$200

$167

$271

$200

$839

$236

$176

$194

$174

$781

Japan

115

113

90

89

407

100

84

94

83

361

Principal Markets

77

52

76

118

323

151

169

191

166

677

Strategic Markets

119

116

160

89

484

149

166

161

166

642

Three months ended

June 30,
2023

Sept. 30,
2023

Dec. 31,2023

March 31,2024

Fiscal year
ended
March 31,2024

Three months ended

Revenue

Segment adjusted EBITDA

The above table presents a recast of revenue and adjusted EBITDA by segment resulting from the transition of Australia/New Zealand from Principal Markets to Strategic Markets, for the years ended
March 31, 2023 and 2024. The recast of our segment results impacts only the Company’s segment reporting and does not affect Kyndryl’s previously published consolidated results

22