<Page>
EXHIBIT 12
COMPUTATION OF RATIO OF INCOME FROM
CONTINUING OPERATIONS TO FIXED CHARGES
FOR THREE MONTHS ENDED MARCH 31,
(UNAUDITED)
(Dollars in millions)
<Table>
<Caption>
2003 2002
------------ ------------
Income from continuing operations
before income taxes (1) $ 1,980 $ 1,817
Add: Fixed charges, excluding
capitalized interest 283 321
------------ ------------
Income as adjusted before income taxes $ 2,263 $ 2,138
============ ============
Fixed charges:
Interest expense $ 168 $ 208
Capitalized interest 4 9
Portion of rental expense representative of
interest 115 113
------------ ------------
Total fixed charges $ 287 $ 330
============ ============
Ratio of income from continuing
operations to fixed charges 7.89 6.48
</Table>
(1) Income from continuing operations before income taxes excludes (a)
amortization of capitalized interest and (b) the company's share in the income
and losses of less-than-fifty percent-owned affiliates.
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<Page>
SEGMENT INFORMATION - ON CONTINUING OPERATIONS BASIS
(UNAUDITED)
<Table>
<Caption>
Hardware Segments
---------------------------------------
Personal
Global Systems Systems Technology
(Dollars in millions) Services Group Group Group
- -------------------------------------------------------------------------------------------
QUARTER ENDED MARCH 31, 2003:
External revenue $ 10,169 $ 2,646 $ 2,390 $ 742
Internal revenue 699 180 36 174
---------- ---------- ---------- ----------
Total revenue $ 10,868 $ 2,826 $ 2,426 $ 916
========== ========== ========== ==========
Pre-tax income (loss) $ 983 $ 195 $ (69) $ (11)
========== ========== ========== ==========
Revenue year-to-year change 22.5% 6.6% (3.9)% (21.4)%
Pre-tax income year-to-year change (8.4)% 10.2% nm 92.1%
Pre-tax income margin 9.0% 6.9% (2.8)% (1.2)%
QUARTER ENDED MARCH 31, 2002:
External revenue $ 8,229 $ 2,484 $ 2,511 $ 930
Internal revenue 640 166 13 236
---------- ---------- ---------- ----------
Total revenue $ 8,869 $ 2,650 $ 2,524 $ 1,166
========== ========== ========== ==========
Pre-tax income (loss) $ 1,073 $ 177 $ 65 $ (139)
========== ========== ========== ==========
Pre-tax income margin 12.1% 6.7% 2.6% (11.9)%
nm - not meaningful
</Table>
RECONCILIATIONS TO IBM AS REPORTED:
<Table>
<Caption>
Quarter Ended Quarter Ended
(Dollars in millions) March 31, 2003 March 31, 2002
-------------- --------------
Revenue:
Total reportable segments $ 21,790 $ 19,519
Eliminations/other (1,725) (1,489)
-------------- -------------
Total IBM Consolidated $ 20,065 $ 18,030
============== =============
Pretax income:
Total reportable segments $ 1,943 $ 1,905
Eliminations/other 38 (92)
-------------- -------------
Total IBM Consolidated $ 1,981 $ 1,813
============== =============
</Table>
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<Page>
<Table>
<Caption>
Global Enterprise Total
Software Financing Investments Segments
- ---------------------------------------------------------
$ 3,129 $ 701 $ 241 $ 20,018
387 295 1 1,772
- ---------- ---------- ---------- ----------
$ 3,516 $ 996 $ 242 $ 21,790
========== ========== ========== ==========
$ 639 $ 273 $ (67) $ 1,943
========== ========== ========== ==========
12.5% 4.4% 4.3% 11.6%
14.1% 23.0% (26.4)% 2.0%
18.2% 27.4% (27.7)% 8.9%
$ 2,897 $ 768 $ 231 $ 18,050
227 186 1 1,469
- ---------- ---------- ---------- ----------
$ 3,124 $ 954 $ 232 $ 19,519
========== ========== ========== ==========
$ 560 $ 222 $ (53) $ 1,905
========== ========== ========== ==========
17.9% 23.3% (22.8)% 9.8%
</Table>
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<Page>
SEGMENT INFORMATION - ON CONTINUING OPERATIONS BASIS
(UNAUDITED)
<Table>
<Caption>
GLOBAL FINANCING
BALANCE SHEETS March December
(Dollars in millions) 31, 2003 31, 2002
---------- ----------
Cash $ 1,043 $ 1,157
---------- ----------
Net investment in sales-type leases 11,743 12,314
Equipment under operating leases:
External customers 1,787 1,922
Internal customers* 1,667 1,701
Customer loans 9,342 9,621
---------- ----------
Total customer financing assets 24,539 25,558
Commercial financing receivables 4,336 5,525
Intercompany financing receivables* 1,725 1,616
Other receivables 414 445
Other assets 1,007 941
---------- ----------
Total financing assets $ 33,064 $ 35,242
========== ==========
Intercompany payables* $ 3,117 $ 5,383
Debt ** 24,134 23,828
Other liabilities 2,288 2,556
---------- ----------
Total financing liabilities 29,539 31,767
Total financing equity 3,525 3,475
---------- ----------
Total financing liabilities and equity $ 33,064 $ 35,242
========== ==========
</Table>
* Amounts eliminated for purposes of IBM's consolidated results. These assets,
along with the other assets in this table, are however, leveraged using Global
Financing debt.
** Global Financing debt includes debt of the company and of the Global
Financing units that support the Global Financing business.
The company's Global Financing business provides funding predominantly for
the company's external customers but also provides internal financing for the
company. Internal financing is predominantly in support of Global Services'
long-term customer service contracts. Global Financing also factors a selected
portion of the company's accounts receivable, primarily for cash management
purposes. Conversely, Global Financing also owes the non-Global Financing
businesses amounts primarily for the purchase of products to be leased
externally. In the company's Consolidated Statement of Earnings, the interest
expense supporting Global Financing's internal financing to the company is
reclassified from Cost of financing to Interest expense.
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