What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-05-30 compared with 2024-05-30 · 100 added, 141 removed, 235 unchanged (51% of the section changed)

Kyndryl Holdings, Inc.

(“we,” “Kyndryl” or the “Company”) is a leading technology services company and the largest IT infrastructure services provider in the world, serving thousands of enterprise customers and with operations in over 60 countries.

(“we,” “Kyndryl” or the “Company”) is a leading provider of mission-critical enterprise technology services offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries.

As the world’s largest IT infrastructure services provider, the Company designs, builds, manages and modernizes the complex information systems that the world depends on every day.

We have a long track record of helping enterprises navigate major technological changes, particularly by enabling our customers to focus on the core aspects of their businesses during these shifts while trusting us with their most critical systems.

6 unchanged sentences

Our services enable us to modernize and manage cloud and on-premises environments as “one” for our customers, enabling them to scale seamlessly.

To deliver these services, we rely on our team of skilled practitioners, consisting of approximately 80,000 professionals.

To deliver these services, we rely on our team of tens of thousands of skilled practitioners.

Since our large and diversified customer base operates in multiple industries and geographies, we utilize a flexible labor and delivery model with a balanced mix of global and local talent as needed to meet customer-specific needs, regulatory requirements and data protection and labor laws.

8 unchanged sentences

Kyndryl’s Spin-off

In November 2021, our former parent company, International Business Machines Corporation (“IBM”, “Parent” or “former Parent”) effected the spin-off (the “Separation” or the “Spin-off”) of the infrastructure services unit (the “Kyndryl Businesses”) of its Global Technology Services segment through the distribution of shares of Kyndryl’s common stock to IBM stockholders (the “Distribution”).

On November 3, 2021, the Separation was achieved through the former Parent’s pro rata distribution of 80.1% of the shares of common stock of Kyndryl to holders of the former Parent’s common stock as of the close of business on the record date of October 25, 2021.

Kyndryl’s stock began trading

as an independent company on November 4, 2021, and IBM disposed of its 19.9% retained interest in Kyndryl common stock in the year following the Spin-off.

In November 2021, our former parent company, International Business Machines Corporation (“IBM” or “former Parent”) effected the spin-off (the “Separation” or the “Spin-off”) of the infrastructure services unit of its Global Technology Services segment through the distribution of shares of Kyndryl’s common stock to IBM stockholders.

On November 3, 2021, the Separation was achieved through the former Parent’s pro rata distribution of 80.1% of the shares

of common stock of Kyndryl to holders of the former Parent’s common stock as of the close of business on the record date of October 25, 2021.

Kyndryl’s stock began trading as an independent company on November 4, 2021, and IBM disposed of its 19.9% retained interest in Kyndryl common stock in the year following the Spin-off.

Our Industry and Market Opportunity

4 unchanged sentences

The markets for these services are large and dynamic.

We estimate that these markets, which are a subset of the total IT services market, collectively represent a $586 billion opportunity in calendar year 2024.

Growth in this market is driven by services that are aligned to customers’ transformations, including public cloud managed services, data services, security services, intelligent automation services and managed services for edge environments.

44 unchanged sentences

These services allow our customers to operate without issue or disruption in response to attacks, outages, natural disasters and geopolitical events.

● Network Services & Edge:

● Network & Edge Services:

We provide network and edge services to help customers meet their technological and commercial requirements for connectivity and compute across their digital environments.

1 unchanged sentence

We deliver these services with a proprietary framework and architecture coupled with proof of concepts to then implement and manage enterprise networks with the appropriate economics.

Our advisory and implementation services are branded as “Kyndryl Consult,” span all six of the practices described above, and represented approximately 15 percent of our total revenue for the year ended March 31, 2024.

In the area of AI and generative AI, we both (i) apply AI and machine learning to deliver services through our Kyndryl Bridge operating platform and (ii) enable our customers to deploy AI and generative AI solutions through our data architecture, data governance, network and security services.

Our advisory and implementation services are branded as “Kyndryl Consult” and span all six of the practices described above.

Our Competitive Strengths

3 unchanged sentences

Our global, high-quality service delivery is underpinned by experienced and highly-trained practitioners who deliver our capabilities to our customers on a daily basis.

Importantly, our culture of customer service excellence – especially in times of crisis, from pandemics to natural disasters, cyber-attacks and power outages – carries on from our heritage through our people.

Importantly, we are committed to maintaining our culture of customer service excellence – especially in times of crisis, from pandemics to natural disasters, cyber-attacks and power outages.

Given our unique capabilities, scale, intellectual property and engineering talent, we are positioned to partner with enterprises for their future across a range of technologies, use cases and business strategies to help them maximize the return on their technology investments and digital transformations.

5 unchanged sentences

Our highly skilled workforce provides the expertise (e.g., approximately 40,000 hyperscale cloud provider certifications) to securely and reliably handle many of the most complex issues.

We also have unique intellectual property applicable to IT environments, as reflected by our portfolio of more than 3,300 patents.

We also have unique intellectual property applicable to IT environments, including our substantial patent portfolio.

● We consistently deliver performance and reliability for complex environments .

7 unchanged sentences

We apply machine learning, combined with our practitioner expertise, to derive unique insights used to service customers, enhance our offerings and produce our next-generation services.

For example, we are recognized leaders in the use of automation and operational AI in the delivery of our services, executing more than 100 million automated actions per month in the IT environments we manage, which enables greater quality and efficiency for us and our customers.

For example, we are a recognized leader in the use of automation and operational AI in the delivery of our services, executing more than 180 million automated actions per month in the IT environments we manage, which enables greater quality and efficiency for us and our customers.

We leverage our operational AI approach and set of technologies, along with intellectual property that we apply and continually evolve to develop predictive actions to prevent issues before they arise.

● We are a recognized leader in managed services for cloud and on-premises environments and services such as security and resiliency.

We offer a range of high-value capabilities including cloud services and security and resiliency services, providing us with a sustainable competitive advantage when helping customers transform

their technology environments.

Our multi-cloud management capabilities are differentiated by our ability to deliver an integrated view of our customers’ diverse technology environments and to provide our services and solutions digitally.

We offer a range of high-value capabilities including cloud services and security and resiliency services, providing us with a sustainable competitive advantage when helping customers transform their technology environments.

Our multi-cloud management capabilities are differentiated by our ability to

deliver an integrated view of our customers’ diverse technology environments and to provide our services and solutions digitally.

We offer integrated services between the cloud and on-premises environments and manage the world’s largest mainframe estate.

4 unchanged sentences

Our Strategies

Our strategy is centered on our ability to build and enrich trusted relationships with customers and technology partners, differentiating Kyndryl through our proven ability to create and deploy scale-derived intellectual property, provide mission-critical expertise across industries and partner with a broad ecosystem for contemporary capabilities that best suit customers’ needs.

We have a strong and long-standing foundation developed by governing and managing complex technology environments, including a range of third-party technologies (e.g., SAP, VMware, Red Hat, Dell and ServiceNow).

We regularly introduce new capabilities with a highly curated ecosystem of technology providers, including strategic relationships with Microsoft, Google Cloud and Amazon Web Services announced since our Spin-off.

Through these alliances, we are developing more services to expand the role we play with existing customers and to access new customers and markets.

We have a long track record of running customers’ technology environments, enabling them to focus on the core aspects of their businesses.

Our strategy is centered on our ability to build and enrich trusted relationships with customers and technology partners, differentiating Kyndryl through our proven ability to create and deploy scale-derived intellectual property, provide mission-critical expertise across industries and partner with a broad ecosystem of leading technology providers for contemporary capabilities that best suit customers’ needs.

We regularly introduce new capabilities with these technology providers, including strategic relationships with Amazon Web Services, Google Cloud and Microsoft announced since our Spin-off.

We have a strong and long-standing foundation developed by governing and managing complex technology environments, including a range of third-party technologies (e.g., Cisco, Dell, Dynatrace, HPE, NVIDIA, Oracle, Palo Alto Networks, Red Hat, Rubrik, SAP, ServiceNow and VMware).

Through these alliances, we continue to develop more services to expand the role we play with existing customers and to access new customers and markets.

We have a long track record of running customers’ technology environments, enabling them to focus on other aspects of their businesses.

Given the nature of the work we do, we have a unique perspective on the operating paradigms that enable the high-quality technology environments which our customers have come to rely on for their most critical systems.

This position enables us to meet customers where they are in their unique digital transformations, work alongside our customers to take them where they want to be and in turn enable them to realize the full, at-scale value of that journey.

Underpinning all of this are our intellectual property, mission-critical expertise across industries and a broad ecosystem of technology alliances.

3 unchanged sentences

Our depth of experience implementing and operating complex architectures across technology sets has yielded valuable experience and intellectual property.

We have more than 3,300 patents that relate to various areas of running complex technology environments, including patents related to multi-cloud management, orchestration, integrated monitoring, issue triage and resolution and other areas that enable quality of service.

We have approximately 3,000 patents that relate to various areas of running complex technology environments, including patents related to multi-cloud management, orchestration, integrated monitoring, issue triage and resolution and other areas that enable quality of service.

Our mission-critical expertise across all industries, augmented by our automation platforms that draw on our IP and data, is a key differentiator in managing complex technology environments.

3 unchanged sentences

In parallel, we are extending our operating, governance and compliance models to this broader set of technologies to integrate and provide end-to-end capabilities for our customers as they digitize and evolve their environments.

● Digitally consumable services models .

Looking ahead, we see opportunity to further expand in areas where we can serve customers through consumption models that allow them to experience our services digitally.

These models will combine our Kyndryl Bridge platform – an open integration platform that delivers IT solutions by leveraging Kyndryl’s core strengths, data-driven insights and expertise, to create an uninterrupted path between a digital business and the technology that delivers it – with our technology governance and capabilities from our ecosystem partners for ease-of-use and scalability, tailored to the needs of specific customer segments.

● Digital service models .

We are increasingly serving customers through our Kyndryl Bridge platform – an AI-powered open integration platform that leverages Kyndryl’s core strengths, data-driven insights and expertise, to create an uninterrupted path between digital business and the technology that delivers it.

We couple our technology governance and capabilities from our ecosystem partners for ease-of-use and scalability, tailored to the needs of specific customer segments.

To execute these strategies, our operating model increasingly reflects that of a flat, fast and focused services company, centered around our customers’ success.

We are pursuing an investment and co-investment strategy focused on building and maintaining world-class teams, developing aligned intellectual property and automation, and leveraging our ecosystem of technology alliance partners.

To accelerate our return to profitable growth, we are aggressively executing on our “three-A” initiatives – Alliances, Advanced Delivery and Accounts.

We believe our implementation of these strategic priorities will enhance the services we provide to our customers and will make significant positive contributions to our financial performance, both in the near term and over the next several years.

We are focused on building and maintaining world-class teams, developing aligned intellectual property and automation, and leveraging our ecosystem of technology alliance partners.

To accelerate our return to profitable growth, we have aggressively executed on our “three-A” initiatives – Alliances, Advanced Delivery and Accounts.

Our implementation of these strategic priorities has enhanced the services we provide to our customers and has made significant positive contributions to our financial performance.

Our global teams are leveraging our partnerships with leading technology vendors, further strengthening the automation we deploy in delivering our services, and addressing elements of our business with substandard margins as follows:

1 unchanged sentence

We leverage our relationships with key hyperscale cloud providers and other leading technology vendors to expand our cloud and other offerings in the market, and the range of technology solutions we can offer to, and implement for, our customers.

Since our Spin-off, we have announced business alliances with Microsoft, Amazon Web Services, Google Cloud, SAP, Dell, Cisco, Cloudflare and ServiceNow among others.

We continue to expand the cloud-related capabilities we offer to customers and are growing the number of our hyperscale cloud provider certifications.

We maintain business alliances with Amazon Web Services, Cisco, Dell, Dynatrace, Google Cloud, HPE, Microsoft, NVIDIA, Oracle, Palo Alto Networks, Red Hat, Rubrik, SAP, ServiceNow and VMware, among others.

We continue to expand the cloud-related capabilities we offer to customers and to hold tens of thousands of hyperscale cloud provider certifications.

● Advanced Delivery initiative – Transforming service delivery through upskilling and automation.

Our expanded use of automation and other technology tools allows us to further strengthen the quality of services we deliver to our customers, drive efficiency in our operations, and redeploy professionals in our organization to serve new revenue streams and backfill attrition as they arise.

Our expanded use of Kyndryl Bridge, automation and other technology tools allows us to further strengthen the quality of services we deliver to our customers, drive efficiency in our operations, and redeploy professionals in our organization to serve new revenue streams and backfill attrition.

Our increased use of automation and AI within our delivery operations helps to reduce costs across the entire organization.

● Accounts initiative – Addressing elements of our business with substandard margins.

We are working to transform the profitability of certain revenue streams that represent a meaningful portion of our business.

For instance, we frequently expand the scope of customer relationships by adding higher-value services and leveraging our new ecosystem partners’ capabilities.

When necessary, we reduce scope by removing, or not renewing, unprofitable elements of a contract.

We reduce costs by applying our Advanced Delivery tools and processes to replace labor-intensive and/or customized services with automated and/or more standardized solutions.

When managed-services contracts are renegotiated and renewed, we adjust pricing and other terms to enhance our margins.

Given the mission-critical nature of our services and our long-standing relationships, we are experiencing an openness among our customers to find solutions.

On the rare occasion when no other resolution is available for a situation with an unsustainable margin profile, we will allow a contract to end without renewing it, and we will optimize the cost to serve until expiration.

In fiscal 2025, we intend to continue accelerating our transformation through our three-A’s initiatives, continue growing Kyndryl Consult and optimize our costs and expenses in all areas of our business, from service delivery to corporate functions.

Kyndryl Consult, which represented approximately 15 percent of our revenue for the year ended March 31, 2024, represents a range of advisory and implementation services that we provide to customers, across all six of our practices and all of our geographic segments.

We expect these initiatives to propel us toward profitable growth and enable us to deliver more value to customers and stockholders.

Our corporate citizenship strategy is at the heart of Kyndryl’s purpose to power human progress.

We aim to create a sustainable and inclusive future by driving sustainable business practices, and positive social impact at scale.

an independent company, Kyndryl is embracing environmental stewardship, fostering social inclusivity and promoting good governance practices.

In September 2023, Kyndryl published its inaugural Corporate Citizenship Report outlining our commitments.

We have been working to transform the profitability of certain revenue streams that represent a meaningful portion of our business.

For instance, we are frequently expanding the scope of customer relationships by adding higher-value services and leveraging our ecosystem partners’ capabilities.

When necessary, we have reduced scope by removing, or not renewing, unprofitable elements of a contract.

We are also able to reduce costs by applying our Advanced Delivery tools and processes to replace labor-intensive and/or customized services with automated and/or more standardized solutions.

And when managed services contracts with substandard margins are renegotiated and renewed, we seek to adjust pricing and other terms to enhance our margins.

As we evolve as an independent company, we intend to increase our emphasis on top-line revenue growth, both by expanding the scope of services we provide to existing customers and by winning new customers.

In addition, we will continue executing on our three-A’s initiatives, growing Kyndryl Consult and optimizing our costs and expenses throughout our business, from service delivery to corporate functions.

We will continue to focus on these initiatives to drive profitable growth and enable us to deliver more value to customers and stockholders.

In September 2024, Kyndryl published its latest Corporate Citizenship Report outlining the actions and plans that align our corporate citizenship strategy with our mission.

This includes achieving net zero greenhouse gas emissions by 2040 and a 50% reduction in global emissions including our value chain by 2030 aligned with the Science Based Targets initiative.

The commitment reinforces Kyndryl’s dedication to operating responsibly as it built the foundation of the program globally.

Beyond our environmental commitments, Kyndryl is focused on building a diverse workforce and an inclusive and equitable culture.

Beyond our environmental commitments, Kyndryl is focused on building an engaged workforce culture.

Our approach to our workplace consists of empowering employees to advance their careers through ongoing training and upskilling.

5 unchanged sentences

We are the trusted advisor and partner to thousands of customers worldwide, in technology-intensive and often highly regulated environments, managing mission-critical technology environments across a wide range of industries.

● Nearly 50 percent of our revenue is derived from companies in the financial services industry, where we serve hundreds of global, multinational and regional banks, insurance companies, mutual fund complexes, credit card and transaction processors and providers of other financial services.

● Approximately 20 percent of our revenue is generated from technology, media and telecom companies.

● Nearly 15 percent of our revenue is from retail and travel companies.

● More than 10 percent of our revenue is generated from the industrial sector, which includes some of the largest automotive manufacturers in the world.

Our revenues are concentrated in the industries mentioned above, but our revenues are diversified across a broad set of customers.

In fiscal year 2024, our top five customers accounted for approximately 10% of our revenue.

As companies engage in their digital journeys, they often face a key impediment because of the skills and expertise needed to realize their transformations.

● Approximately 44 percent of our revenue is derived from companies in the financial services industry, where we serve hundreds of global, multinational and regional banks, insurance companies, mutual fund complexes, credit card and transaction processors and providers of other financial services.

● 15 percent of our revenue is generated from the industrial sector, which includes some of the largest automotive manufacturers in the world.

● 13 percent of our revenue is generated from healthcare companies and the public sector.

● 13 percent of our revenue is generated from technology, media and telecom companies.

● 15 percent of our revenue is from retail, travel and other companies.

Within these sectors, our revenues are diversified across a broad set of customers.

In fiscal year 2025, our five largest customers accounted for approximately 8% of our revenue.

federal government accounted for less than one-half of one percent of our revenue.

As companies look to modernize their technology estates, they often face a key impediment because of the skills and expertise needed to realize their transformations.

This, in part, is brought on by the increasing complexity of enterprise environments, the incorporation of new technologies and the deployment of different operating models.

1 unchanged sentence

Companies will benefit from selecting service providers that have greater insight into their environments and needs, which advantages partners like Kyndryl who have industry-leading scale and long-standing customer relationships.

Through decades of collaboration with customers, we have developed deep relationships as we supported the technology environments that advanced their business agendas.

Examples include:

Implementation of hybrid cloud and automation tools :

Kyndryl executed a five-year contract with a U.S.

healthcare services company to provide mission-critical IT managed services and accelerate its digital transformation with the aim of enhancing the patient and caregiver experience.

Under this agreement, our customer will use Kyndryl

Bridge to integrate AIOps and automation capabilities.

As part of this collaboration, Kyndryl will deliver and support evolving IT capabilities via a built-for-purpose dedicated command center.

Enabled by Kyndryl-managed services experts, the command center will focus on providing the highest levels of quality and reliability to support our customer in delivering the highest levels of safe patient care.

Our customer will also tap into Kyndryl’s broad set of technologies and skills, including Kyndryl Consult and its global strategic partnership with Microsoft, to migrate critical workloads, resulting in a more modern and resilient hybrid cloud infrastructure.

Complex mainframe transformation, moving applications to the cloud :

We extended our partnership with a leading telecommunications provider in the UK to collaborate on a cutting-edge program to move a number of its critical mainframe applications to the cloud.

The ten-year partnership, which draws on our hyperscale cloud provider capabilities and partner ecosystem, will allow the customer to reduce mainframe operating costs and energy consumption.

In moving to the cloud, our customer’s mainframe applications will become more digital with application programming interfaces and micro-services capabilities, to help integrate the value of data across its systems and drive innovation through automation.

Migrating from mainframes to cloud extends the usefulness and lifespan of these applications in a modern, micro-services led, cloud-centric way and helps to unlock intelligent data insights within these key applications.

Large-scale transformation to cloud :

We partnered with a large, European financial institution to help it migrate from a predominantly on-premises, classic infrastructure environment to a cloud-based infrastructure, utilizing both private and public clouds.

We provided the expertise and support to navigate this digital transformation while maintaining and improving quality of service as we moved over 1,000 applications.

We also deployed a new Kubernetes container-based environment and management capabilities to increase workload portability and flexibility.

This work enabled the customer’s platform to run with increased digital agility and efficiency, embedding strong data security within the new cloud-based infrastructure and providing alignment to the existing infrastructure environment.

The customer’s transformation has produced clear business benefits, from new products and services that are brought to market faster, to an increase in sales through online channels.

Modernization of the technology environment :

Based on a relationship spanning almost two decades, we partnered with a large European bank to help launch a ten-year transformational program to increase operational agility and efficiency by optimizing the customer’s critical infrastructure, reducing complexity, migrating to hybrid cloud and reducing operational costs.

We reduced IT infrastructure complexity by redesigning critical infrastructure architecture, including networks, storage, virtualization and data backup for improved efficiency, enabled ‘scalable’ hybrid cloud by implementing and updating existing systems to a hybrid cloud solution supported by Red Hat and transformed legacy IT services by modernizing tools and the operating model for deployment of IT services.

The customer will benefit from modern IT infrastructure including cloud and mainframes that supports their core banking services and treasury functions.

Digital transformation across the enterprise :

We collaborated with a large material sciences company in North America to support their mission-critical IT infrastructure globally, providing integrated management for environments that include hybrid cloud infrastructure, network, security and end-user services.

Building on our history of collaboration with this customer, we are working to accelerate their digital transformation.

We are helping our customer build foundational capabilities for their digital journey, powered by data, analytics and AI and machine learning integrated into core business processes and connected through a flexible and secure network.

Digitization for flexibility :

Our customer, a large Japanese transportation company, was engaged in a technology-driven transformation to establish a flexible IT environment using hybrid cloud that evolves with changing business needs.

We worked with the customer to build an integrated private and public cloud with the same virtualization architecture and a management capability that unifies operations and evolves with the business.

Through our collaboration, we created an integrated infrastructure to meet our customer’s current and future needs by modernizing its on-premises, off-premises and network environments as well as its management platform.

We deployed software-defined networks across the environment and automation to realize improved quality and business continuity.

Our work helps support our customer’s efforts to become one of the most valued and preferred transportation companies in the world.

Sales and Marketing

5 unchanged sentences

They tailor the full suite of our services to customers’ needs to deliver value and business outcomes across a wide range of technology environments.

Account leaders are supported by dedicated, multi-disciplinary technical sales and delivery teams, consulting teams, as well as by shared services teams, to support an effective and efficient engagement.

Account leaders are supported by dedicated, multi-disciplinary technical sales, delivery and consulting teams, as well as by shared services teams, to support an effective and efficient engagement.

This account coverage model ensures consistent and reliable delivery of services for our existing relationships over the lifetime of current and renewal contracts.

In addition, the model supports the potential expansion of existing relationships based on our deep industry perspective and expertise and knowledge of customers’ unique needs.

In addition, the model supports the potential expansion of existing relationships based on our deep industry perspective and expertise and knowledge of customers’

unique needs.

Finally, this account-based model seeks to build and expand existing relationships with line-of-business buyers, as they have become critical decision makers working alongside our customers.

8 unchanged sentences

We are continuing to enhance and develop strategic partnerships with companies in the ecosystems most relevant to our customers’ digital transformations.

This includes building new routes to market across these ecosystems to serve as a multiplier, enabling us to expand business via partners such as public cloud providers, ISVs, technology providers (ranging from established, scaled players to growth-stage start-ups), system integrators, business consulting firms and business services providers.

This includes building new routes to market across these ecosystems to serve as a multiplier, enabling us to expand business via partners such as public cloud providers, ISVs, technology providers, system integrators, business consulting firms and business services providers.

These relationships bring value to our customers through broader access to best-in-class solutions that are tailored for their unique technology environments and digital journeys.

We have several key partnerships, including with Microsoft, Google, Amazon Web Services, SAP, VMware, Cisco, Dell Technologies, Oracle, Cloudflare and ServiceNow that accelerate broader market participation, joint solution development and investment in skills and certification enhancements for Kyndryl.

We have several key partnerships, including with Amazon Web Services, Cisco, Dell, Dynatrace, Google Cloud, HPE, Microsoft, NVIDIA, Oracle, Palo Alto Networks, Red Hat, Rubrik, SAP, ServiceNow and VMware that accelerate broader market participation, joint solution development and investment in skills and certification enhancements for Kyndryl.

We have established dedicated teams to support our key alliance partners and will continue to co-create and co-market with them to deliver value to our mutual customers, driving differentiation in the market with industry-leading technology and Kyndryl services.

5 unchanged sentences

Many of these companies offer a mix of advisory, implementation and managed services across infrastructure, application and business processes.

Examples include Atos, DXC, Fujitsu, HCL, Infosys, Tata Consultancy Services and Wipro, among others.

The basis of competition involves multiple factors, with key elements including quality of service, technical skills and capabilities, industry knowledge and experience, financial value, ability to innovate, intellectual property and methods, contracting flexibility and speed of execution.

1 unchanged sentence

Our decades-long collaboration with customers provides us with the insights to realize distinctive performance that supports their digital transformation.

We deliver unique value by providing intellectual property derived from insights at scale, deploying mission-critical expertise and leveraging a broad ecosystem – while building and strengthening partnerships to enhance the customer experience.

We deliver differentiated value by providing intellectual property derived from insights at scale, deploying mission-critical expertise and leveraging a broad ecosystem – while building and strengthening partnerships to enhance the customer experience.

We position ourselves uniquely, leveraging a core strength in governance and management of complex IT infrastructure environments, delivered through a global footprint.

1 unchanged sentence

We offer choice with consistency through an operating paradigm and management model built from our experiences with complex technologies.

These capabilities uniquely position us as both a leading partner and competitor within the same market.

Intellectual Property

We are focused on developing leading-edge ideas and technologies and see innovation as a source of competitive advantage.

We have more than 3,300 patents that are related to our business model.

A key pillar of our strategy is continuing to invest in knowledge and intellectual property to support extending our services to a broader ecosystem of technology providers and customer challenges and solutions.

We remain committed to innovation and the development and maintenance of a focused patent portfolio that is related to our business.

A key pillar of our strategy is continuing to invest in knowledge and intellectual property to support extending our services to a broader ecosystem of technology providers, customer challenges and solutions.

Our decades of experiences working with our customers has generated operational insights, creating intellectual property that we leverage for the benefit of our customers and deploy at scale.

1 unchanged sentence

In addition, we license third-party software along with other technologies that are used in the provision of or incorporated into some elements of our services.

We possess a significant intellectual property portfolio, which we believe is important to our success.

We possess a significant intellectual property portfolio (including automations, AI models, reference architectures and thought leadership materials), which we believe is important to our success.

However, we believe our business as a whole is not materially dependent on any particular intellectual property right or any particular group of patents, trademarks, copyrights or licenses.

4 unchanged sentences

Approximately 90% of our employees work outside the U.S., with workforce hubs in India, Poland, Brazil, Japan, Czechia and Hungary.

Our people advance the vital systems that power human progress.

Our people advance the vital systems that power human progress and are at the center of designing, building and managing the technology environments that the world depends on every day.

Our global workforce is highly skilled, reflective of the work we do for our customers’ digital transformations and in support of their mission-critical operations.

1 unchanged sentence

Our employees, whom we call Kyndryls, have earned certifications through our learning platform and alliance partners, which provide access to curriculums that span strategic skills, cloud, AI, analytics, design thinking, quantum computing and security.

We support various ways of working and offer accelerated career progression opportunities.

We have invested, and will continue to invest, in our teams to be at the heart of technological change for our customers.

Our objective is to be both a partner and employer of choice.

Talent, Culture and Employee Engagement

We have built a differentiated, services-based culture – that we call the Kyndryl Way – to attract, retain, develop and engage a highly skilled workforce.

At Kyndryl, we aim to be:

5 unchanged sentences

● Fast, agile change leaders with courage to be bold and judgment to manage risk

● Dedicated to building empowered, inclusive and accountable teams;

recruiting, retaining and developing diverse talent that enhances performance and capabilities

We support new ways of working and accelerated career progression promoting innovation throughout our organization.

Our Kyndryl Way is founded on our Vision to become an “employer of choice” and is founded on our aim to advance what’s next for ourselves and our customers.

Our people are at the center of designing, building and managing the technology environments that the world depends on every day.

We will continue to invest in our teams to be at the heart of technological change for our customers.

We offer comprehensive market-competitive rewards and benefits programs including health benefits, mental health support and employee assistance plans, retirement savings benefits, paid time off and recognition programs, among others.

Talent and Culture;

Inclusion, Diversity and Equity

● Dedicated to building empowered, engaged and accountable teams

Our business is centered around our people, and our talent strategy revolves around our ability to best serve our customers through ongoing investment in talent and skill development.

2 unchanged sentences

● Attracting:

Elevating the Kyndryl brand and creating a candidate experience where diversity, equity and inclusion are at the forefront of the hiring process.

We proactively source talent both internally and externally with advanced capabilities to ensure that we have the right talent, at the right time, in the right place

Elevating the Kyndryl brand and proactively sourcing talent both internally and externally so that we have the right capabilities, at the right time, in the right place

● Developing:

Providing employees with transparency to understand the skills, capabilities and experiences essential to our growth and their progression over their career by ensuring access to resources specifically designed to advance critical skills and competencies

Communicating our strategy and building our Kyndryl culture;

Providing employees with transparency to understand the skills, capabilities and experiences essential to their growth and their progression over their career by providing access to resources specifically designed to advance market-valued skills and competencies

Fostering employee engagement by communicating our strategy and building our Kyndryl culture;

establishing programs that are focused on rewarding value creation;

recognizing performance;

and driving accountability balanced with workplace flexibility, well-being, continuous learning and a diverse, inclusive and equitable environment

responding to feedback collected through regular employee engagement surveys;

and driving accountability balanced with workplace flexibility, well-being, continuous learning and an engaged environment

We are committed to building the technical careers of the future and have made investments in training and skills to enable our people to be relevant, experienced and technically positioned to serve our customers on their most complex challenges.

We continue to expand our certifications and accreditations each year through consistent investment in skill development around emerging technologies and key areas for growth.

Our employee base adds and maintains various technical certifications and accreditations through consistent investment in skill development around emerging technologies and key areas for growth.

Health, Safety and Well-Being

Protecting the health, safety and well-being of our employees is a top priority.

We have an experienced Health and Safety team comprised of medical doctors, nurses, industrial hygiene, safety and workforce health experts.

This team has implemented a health and safety management system that monitors our locations for compliance with all local health and safety regulations, minimizes workplace health and safety risks, and provides for safe and healthy workplaces so our employees can do their best work.

We established a global, comprehensive well-being strategy designed to provide programs and benefits that support our employees’ physical, mental, social and financial well-being.

In addition, our experienced Health and Safety team, comprised of medical doctors, nurses, industrial hygiene, safety and workforce health experts, implemented a health and safety management system that monitors our locations for compliance with all local health and safety regulations, minimizes workplace health and safety risks, and provides for safe and healthy workplaces so our employees can do their best work.

Available Information

10 unchanged sentences

Martin Schroeter.

Schroeter, 59, was appointed our Chief Executive Officer in January 2021 and was appointed as Chairman of the Board in October 2021 in connection with the Spin-off.

Schroeter, 60, was appointed our Chief Executive Officer and Chairman of the Board in 2021.

Previously, Mr.

4 unchanged sentences

David Wyshner.

Wyshner, 57, was appointed our Chief Financial Officer in September 2021.

From March 2020 until his appointment as our Chief Financial Officer, Mr.

Wyshner, 58, was appointed our Chief Financial Officer in 2021.

From 2020 until his appointment as our Chief Financial Officer, Mr.

Wyshner served as the Chief Financial Officer at XPO Logistics, Inc., where he led all financial functions for the global transportation and contract logistics company.

1 unchanged sentence

Wyshner served as the Chief Financial Officer at Wyndham Hotels & Resorts, Inc.

from May 2018 to December 2019, and as its senior advisor from December 2019 to March 2020.

He served as Executive Vice President and Chief Financial Officer of Wyndham Worldwide Corporation, from which Wyndham Hotels was spun-off, from August 2017 to May 2018.

From August 2006 to June 2017, Mr.

Wyshner served as the Chief Financial Officer of Avis Budget Group and also served as Avis Budget Group’s president from January 2016 to June 2017.

from 2018 to 2019, and as its senior advisor from 2019 to 2020.

He served as Executive Vice President and Chief Financial Officer of Wyndham Worldwide Corporation, from which Wyndham Hotels was spun-off, from 2017 to 2018.

From 2006 to 2017, Mr.

Wyshner served as the Chief Financial Officer of Avis Budget Group and also served as Avis Budget Group’s president from 2016 to 2017.

Wyshner received his MBA from the Wharton School of the University of Pennsylvania and his BA in applied mathematics from Yale University.

Keinan, 59, was appointed our Group President in March 2021.

Since September 2020, Mr.

Keinan, 60, was appointed our Group President in 2021.

Since 2020, Mr.

Keinan has served as a venture partner at Pitango Venture Capital, focusing on scaling the success of growth stage technology companies, and as an advisor to Sumitomo Corporation.

Prior to that, Mr.

Keinan served a variety of executive roles at IBM from July 1987 to June 2020, including General Manager of IBM North America and Chairman of IBM Japan, and held top leadership roles in Latin America and Europe.

Keinan currently serves on the boards of Cellebrite, Ottopia and United Way of New York City.

Keinan received his MBA from University of Miami Herbert Business School and his Bachelor of Science in Computer Science and Electrical Engineering from Rensselaer Polytechnic Institute.

Keinan served a variety of executive roles at IBM from 1987 to 2020, including General Manager of IBM North America and Chairman of IBM Japan, and held top leadership roles in Latin America and Europe.

From 2021 to August 2024, Mr.

Keinan served on the board of Ottopia.

Keinan currently serves on the boards of Cellebrite and United Way of New York City.

Keinan received his MBA from the University of Miami Herbert Business School and his Bachelor of Science in Computer Science and Electrical Engineering from Rensselaer Polytechnic Institute.

Maryjo Charbonnier.

Charbonnier, 54, was appointed our Chief Human Resources Officer in July 2021.

From January 2015 until her appointment, Ms.

Charbonnier, 55, was appointed our Chief Human Resources Officer in 2021.

From 2015 until her appointment, Ms.

Charbonnier served as the Chief Human Resources Officer at Wolters Kluwer, where she was responsible for the design and implementation of all human resources strategies, policies and processes.

Prior to that, Ms.

Charbonnier served as the Chief Human Resources Officer at Broadridge Financial Solutions from August 2008 to December 2014.

From August 1995 to August 2008, Ms.

Charbonnier served as the Chief Human Resources Officer at Broadridge Financial Solutions from 2008 to 2014.

From 1995 to 2008, Ms.

Charbonnier was an HR executive in a variety of leadership roles at PepsiCo, including Vice President for Talent Sustainability for PepsiCo Foods Americas.

1 unchanged sentence

Edward Sebold.

Sebold, 59, was appointed our General Counsel and Secretary in October 2021 in connection with the Spin-off.

From March 2012 until his appointment as our General Counsel, Mr.

Sebold, 60, was appointed our General Counsel and Secretary in 2021.

From 2012 until his appointment as our General Counsel, Mr.

Sebold served as Assistant General Counsel at IBM, leading several global legal functions at IBM, including teams that worked with services, IBM’s Watson Health, litigation and mergers and acquisitions.

2 unchanged sentences

Sebold serves on the board of the Pro Bono Partnership.

Sebold received his JD from University of Michigan and his Bachelor of Arts in economics from John Carroll University.

Sebold received his JD from the University of Michigan and his Bachelor of Arts in economics from John Carroll University.

Vineet Khurana.

Khurana, 51, was appointed our Controller in May 2021 and to the additional office of Vice President in November 2021.

Since July 2020, Mr.

Khurana, 52, was appointed our Corporate Controller in 2021.

Since 2020, Mr.

Khurana had been serving as Chief Financial Officer of IBM’s Global Business Services unit.

Prior to assuming this role, Mr.

Khurana was the Chief Financial Officer of IBM Europe from March 2018 through July 2020 and the Vice President and Chief Financial Officer of IBM United Kingdom and Ireland from July 2016 until March 2018.

Khurana was the Chief Financial Officer of IBM Europe from 2018 through 2020 and the Vice President and Chief Financial Officer of IBM United Kingdom and Ireland from 2016 until 2018.

Earlier in his IBM tenure, Mr.

Khurana held roles of increasing responsibility spanning IBM’s financial strategy and IBM’s Global Financing division.

Khurana also serves as an External Governor and a member of the Infrastructure and Finance Committee of the University of Portsmouth, United Kingdom.

Khurana received his MBA from University of Warwick, United Kingdom and his undergraduate degree in Chemical Engineering from Manipal Institute of Technology, India.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business