Slide 1: Earnings Announcement Q1 FY24
Data courtesy of Print my Leg Earnings Announcement February 28, 2024 | Q1 FY24
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, they could affect the business and results of operat
Slide 3: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information HP has included non-GAAP financial measures in this presentation to supplement HP’s consolidated financial statements presented on a generally accepted accounting principles (“GAAP”) basis. Definitions of these non-GAAP financial measures and reconciliations of
Slide 4: Q1 FY24 Highlights
Q1 FY24 Highlights • Net revenue of $13.2 billion, down 4% from the prior-year period and down 5% in constant currency1 • Non-GAAP diluted net earnings per share2 of $0.81, within the previously provided outlook of $0.76 to $0.86 per share • GAAP diluted net earnings per share of $0.62, within the p
Slide 5: Q1 FY24 Results Overview
Q1 FY24 Results Overview Growth Growth CC1 Non-GAAP Non-GAAP Non-GAAP Non-GAAP $ in millions Net revenue y/y % y/y % OP $3 OP % of rev3 OP $ y/y3 OP % of rev y/y3 Printing $4,375 (5.1)% (4.8)% $872 19.9% $2 1.0 pts Personal $8,809 (4.1)% (4.9)% $537 6.1% $62 0.9 pts Systems Corporate Investments / $
Slide 6: Q1 FY24 Mix by Segment and Region
Q1 FY24 Mix by Segment and Region Net revenue Non-GAAP operating profit2 Net revenue By key segment and business unit1 By key segment3 By region Personal Systems Printing Commercial Supplies 46% 22% AMERICAS EMEA APJ $1.4 billion 41% 35% 24% Printing Printing 19.9% $13.2 Commercial5 9% 62% of total
Slide 7: Revenue & Non-GAAP Diluted Net EPS Performance
Revenue & Non-GAAP Diluted Net EPS Performance Revenue (Billions) y/y growth (%) Non-GAAP diluted net EPS y/y growth (%) 1 2 1. CC = constant currency; adjusted to exclude the effect of foreign currency exchange fluctuations calculated by translating current period revenue using monthly exchange rat
Slide 8: Regional Revenue Trends
Regional Revenue Trends Billions % growth Billions % growth Americas United (including U.S.) States Billions % growth Billions % growth Asia EMEA Pacific y/y revenue growth % y/y revenue growth in constant currency %1 1. Adjusted to exclude the effect of foreign currency exchange fluctuations calcul
Slide 9: Personal Systems Q1 FY24
Personal Systems Q1 FY24 Revenue down 4% y/y due to soft demand and unfavorable mix shift, offset partially by market share gains in both Consumer and Commercial. OP rate up 0.9 pts y/y driven by lower Revenue Operating profit commodity and logistics costs, and cost savings, offset in part by pricin
Slide 10: Printing Q1 FY24
Printing Q1 FY24 Revenue down 5% y/y, driven by soft hardware demand, aggressive pricing, and share loss. OP rate up y/y, driven by lower hardware Revenue Operating profit volumes, cost improvements, lower variable comp, and Supplies pricing, partially offset 5% y/y $4.4 $872 by hardware pricing hea
Slide 11: Key Growth Areas
Key Growth Areas Continuing to make progress; maintaining investments in a down market HYBRID SYSTEMS Revenue remains impacted by the current enterprise spending environment, but continuing to invest in the portfolio. Introduced Poly Voyager Free 20 Wireless Earbuds, delivering advanced sound and st
Slide 12: Sustainable Impact
Sustainable Impact Climate Action Human Rights Digital Equity HP recently named America’s “Most Ranked among Forbes World’s Top Companies Received inaugural TIME Team of the Year Responsible Company” by Newsweek in our for Women 2023. Award, recognized for leadership in industry. advancing digital e
Slide 13: Select Cash & Debt Balances
Select Cash & Debt Balances $ Billions 1 $ Billions 1Q23 2Q23 3Q23 4Q23 1Q24 Gross cash2 1.8 1.9 1.7 3.2 2.4 Gross debt3 10.9 10.7 9.8 9.6 9.8 Net cash (debt)1,4 (9.1) (8.8) (8.1) (6.4) (7.4) 2 3 1. Net cash (debt) is defined as gross cash less gross debt 2. Gross cash includes cash, cash equivalent
Slide 14: Cash Flow & Shareholder Return
Cash Flow & Shareholder Return $ Millions Cash Flow $ Millions 1 Shares repurchased 3.6 million 16.7 million 3.6 million 16.7 million Dividend per share $1.0500 $0.2756 $0.2625 $0.2756 1. Free cash flow = Net cash provided by/(used in) operating activities adjusted for net investment in leases and n
Slide 15: Outlook
Outlook Q2 FY24 net EPS guidance GAAP diluted net EPS $0.58 – $0.68 Non-GAAP diluted net EPS1 $0.76 – $0.86 FY24 net EPS guidance GAAP diluted net EPS $2.61 – $3.01 Non-GAAP diluted net EPS1 $3.25 – $3.65 FY24 Free Cash Flow Guidance Free Cash Flow2 $3.1 – $3.6 billion 1. Second quarter and fiscal 2
Slide 16: Non-GAAP Financial Information
Non-GAAP1 Financial Information $ in millions, except per share amounts Q1 FY24 Q4 FY23 Q1 FY23 % of Revenue % of Revenue % of Revenue Revenue $13,185 $13,817 $13,798 Cost of revenue 10,297 78.1% 10,832 78.4% 11,011 79.8% Total OpEx 1,782 13.5% 1,738 12.6% 1,734 12.6% Operating profit $1,106 8.4% $1
Slide 17: Q1 FY24 GAAP to Non-GAAP Bridge
Q1 FY24 GAAP to Non-GAAP Bridge $ in millions, except Amortization of Restructuring and Acquisition and Tax Non-operating tax rate and per GAAP intangible assets other charges divestiture adjustments retirement related Non-GAAP share amounts charges (credits) / charges Revenue $13,185 $13,185 Cost o
Slide 18: Slide 18
Slide 19: Supplemental Slides
Supplemental Slides @
Slide 20: Inventory & Accounts Receivable
Inventory & Accounts Receivable INVENTORY ACCOUNTS RECEIVABLE In Billions Percentage of Revenue1 In Billions Percentage of Revenue1 1. % of revenue calculations based on trailing 4-quarter net revenue 20
Slide 21: PP&E & Accounts Payable
PP&E & Accounts Payable PP&E ACCOUNTS PAYABLE In Billions Percentage of Revenue1 In Billions 1. % of revenue calculations based on trailing 4-quarter net revenue 21
Slide 22: Working Capital Metrics
Working Capital Metrics In Days 1 1. Cash conversion cycle = Days receivables + Days inventory – Days payable 22
Slide 23: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation $ in millions 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 Net cash provided by/ (used in) operating $508 $394 $1,904 $4,463 $(16) $636 $976 $1,975 $3,571 $121 activities Net investment in property, plant and (178) (170) (144) (765) (192) (130) (137) (134) (593) (1
Slide 24: FY23 GAAP to Non-GAAP Bridge
FY23 GAAP to Non-GAAP Bridge $ in millions, except tax Amortization of Restructuring Acquisition and Debt Non-operating rate and per share GAAP intangible assets and other divestiture Extinguishment Tax adjustments retirement related Non-GAAP amounts charges charges benefit (credits) / charges Reven
Slide 25: Q4 FY23 GAAP to Non-GAAP Bridge
Q4 FY23 GAAP to Non-GAAP Bridge $ in millions, except tax rate Amortization of Restructuring and Acquisition and Non-operating and per share amounts GAAP intangible assets other charges divestiture charges Tax adjustments retirement related Non-GAAP (credits) / charges Revenue $13,817 $13,817 Cost o
Slide 26: Q3 FY23 GAAP to Non-GAAP Bridge
Q3 FY23 GAAP to Non-GAAP Bridge $ in millions, except Amortization of Restructuring and Acquisition and Debt Tax Non-operating tax rate and per GAAP intangible assets other charges divestiture extinguishment adjustments retirement related Non-GAAP share amounts charges benefit (credits) / charges Re
Slide 27: Q2 FY23 GAAP to Non-GAAP Bridge
Q2 FY23 GAAP to Non-GAAP Bridge $ in millions, except Amortization of Restructuring and Acquisition and Tax Non-operating tax rate and per GAAP intangible assets other charges divestiture adjustments retirement related Non-GAAP share amounts charges (credits) / charges Revenue $12,907 $12,907 Cost o
Slide 28: Q1 FY23 GAAP to Non-GAAP Bridge
Q1 FY23 GAAP to Non-GAAP Bridge $ in millions, except tax rate Amortization of Restructuring and Acquisition and Debt Tax Non-operating and per share amounts GAAP intangible assets other charges divestiture extinguishment adjustments retirement related Non-GAAP charges costs (credits) / charges Reve
Slide 29: FY22 GAAP to Non-GAAP Bridge
FY22 GAAP to Non-GAAP Bridge $ in millions, except tax Amortization of Restructuring Acquisition and Russia exit Non-operating rate and per share GAAP intangible assets and other divestiture charges Tax adjustments retirement related Non-GAAP amounts charges charges (credits) / charges Revenue $62,9
Slide 30: Q4 FY22 GAAP to Non-GAAP Bridge
Q4 FY22 GAAP to Non-GAAP Bridge $ in millions, except tax rate Amortization of Restructuring and Acquisition and Non-operating and per share amounts GAAP intangible assets other charges divestiture charges Tax adjustments retirement related Non-GAAP (credits) / charges Revenue $14,774 $14,774 Cost o
Slide 31: Q3 FY22 GAAP to Non-GAAP Bridge
Q3 FY22 GAAP to Non-GAAP Bridge $ in millions, except tax rate Amortization of Restructuring Acquisition- Russia exit Tax Non-operating and per share amounts GAAP intangible assets and other related charges charges adjustments retirement related Non-GAAP charges (credits) / charges Revenue $14,648 $
Slide 32: Q2 FY22 GAAP to Non-GAAP Bridge
Q2 FY22 GAAP to Non-GAAP Bridge $ in millions, except tax rate Amortization of Restructuring and Acquisition-related Non-operating and per share amounts GAAP intangible assets other charges charges Tax adjustments retirement related Non-GAAP (credits) / charges Revenue $16,475 $16,475 Cost of revenu
Slide 33: Q1 FY22 GAAP to Non-GAAP Bridge
Q1 FY22 GAAP to Non-GAAP Bridge $ in millions, except tax rate Amortization of Restructuring and Acquisition-related Non-operating and per share amounts GAAP intangible assets other charges charges Tax adjustments retirement related Non-GAAP (credits) / charges Revenue $17,013 $17,013 Cost of revenu