Kyndryl (KD) investor relations material

Strategic transformation and growth drivers

• Gained investment capability and freedom of action post-spin, enabling expansion into new markets and partnerships with major hyperscalers like Microsoft, Google, Amazon, Oracle, and SAP.

• Shifted company culture from a product-focused to a services-oriented mindset, enhancing customer trust and positioning as an independent technology adviser.

• Strategy centers on advanced delivery, alliances, and focus accounts, driving profitability and a return to growth.

• Consulting activities have grown from 10% to over 20% of business, targeting 25%, reflecting increased advisory and implementation work.

Investment focus and operational improvements

• Significant investments in workforce skills, especially hyperscaler credentials, security, resiliency, network operations, applications, data, and AI.

• Developed and enhanced the Kindrel Bridge platform, leveraging AI for automation and efficiency, supporting labor cost management and service quality.

• Early years post-spin involved operating at a loss to fund transformation, now achieving profitability and embedding ongoing investment into the business model.

Focus accounts initiative and profitability

• Focus accounts initiative addressed uneconomic legacy contracts, reimagining relationships and improving margins, contributing over $925M in annualized profit.

• Revenue was intentionally reduced by over $1B in the first two years to drive profitability, with over $6.6B in profit dollars added.

• About 85% of the focus account transformation is complete, with ongoing innovation and relationship expansion.