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CNBC Excerpts: CNBC Exclusive: CNBC's David Faber Speaks with IBM Chairman & CEO Ginni Rometty on CNBC's "Power Lunch" Today

WHEN: TODAY, THURSDAY, February 26, 2015

WHERE: CNBC'S "POWER LUNCH"

Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with IBM Chairman and CEO Ginni Rometty today on CNBC's "Power Lunch." Following is a link to video of the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000357667.

All references must be sourced to CNBC.

Rometty on Strategic Imperatives:

We have come out and said these strategic imperatives as we call them all around the world of data cloud and engagement, 25 billion dollars. So what gives me confidence. They grew another very strong 16 percent at actual rates last year. And they are now 27 percent of IBM they've been growing strong double digits for years. Five years ago they were only 13 percent of IBM. We started last year and they were 22 percent and now 27 and in fact we've got confidence they'll continue to grow double digits. And therefore that leads you to 40 billion which would be greater than 40 percent of IBM in four years.

Rometty on Core Portfolio:

Why they remain high value and you innovate in them. They are important. They are not necessarily high growth. So it was important for us to tell and really to share with our owners that these strategic imperatives – very high growth. The core portfolio, watch this space. Important work and high value to the company – our customers and shareholders. But it will, we're counting on it, declining with the market. We're counting on it.

Rometty on Revenue:

We have by design shrunk our revenue. It is by design we reached 7 billion. So just in 2015, that is three points for a full year of revenue growth. And not to mention the situation in macro environmental currency which is approaching 7 points for us right now. So we reminded them that there are reasons why 2015 is different.

Rometty on Linux:

We bring enterprise strength to the world of Open Source. And we did this with Linux long ago and it came from something that was small, non-industrial strength talked about. To now its front and center And by the way it's why things like our Mainframe are so relevant today. 60 percent of their workload is Linux today.

Rometty on Apple:

You're going to see these apps. I couldn't be happier. I know I would speak for Tim as well – Tim and I both about where we are. So by the end of this quarter first 25 apps out. First 12 out already. Next 25. And to me they really highlight what this promise is of they, the gold standard for consumability. Us the gold standard for the enterprise.

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