Slide 1: Earnings Announcement
Data courtesy of Print my Leg Earnings Announcement November 21, 2023 | Q4 FY23
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: Q4 FY23 Highlights
Q4 FY23 Highlights • Net revenue of $13.8 billion, down 6% from the prior-year period and down 5% in constant currency1 • Non-GAAP diluted net earnings per share2 of $0.90, within the previously provided outlook of $0.85 to $0.97 per share • GAAP diluted net earnings per share of $0.97, above the pr
Slide 5: FY23 Highlights
FY23 Highlights • Net revenue of $53.7 billion, down 15% from the prior-year period and down 12% in constant currency1 • Non-GAAP diluted net earnings per share2 of $3.28 , within the previously provided outlook of $3.23 - $3.35 per share • GAAP diluted net earnings per share of $3.26, above the pre
Slide 6: Q4 FY23 Results Overview
Q4 FY23 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 $4,418 (2.5)% (1.6)% $836 18.9% $(58) (0.8) pts Personal $9,398 (8.2)% (7.2)% $631 6.7% $203 2.5 pts Systems Corporate Investmen
Slide 7: FY23 Results Overview
FY23 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 $18,029 (4.6)% (2.9)% $3,399 18.9% $(220) (0.2) pts Personal Systems $35,684 (18.9)% (15.5)% $2,129 6.0% $(631) (0.3) pts Corporate
Slide 8: Q4 FY23 Mix by Segment and Region
Q4 FY23 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 Commercial5 Supplies 45% 20% AMERICAS EMEA APJ $1.5 billion 44% 32% 24% Printing Commercial Printing 18.9% US: 36% $13.8 8% 57% o
Slide 9: FY23 Mix by Segment and Region
FY23 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 Commercial5 Supplies 46% 21% AMERICAS EMEA APJ $5.5 billion 43% 33% 24% Printing Printing 18.9% $53.7 Commercial 8% 61% of total OP
Slide 10: 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. Adjusted to exclude the effect of foreign currency exchange fluctuations calculated by translating current period revenues using monthly exchange rates from the comparative
Slide 11: 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 12: Personal Systems Q4 FY23
Revenue down y/y due to soft demand, Personal Systems Q4 FY23 competitive pricing, mix and currency, offset in part by market share gains. Revenue up 5% q/q driven by seasonal strength. OP rate improvement y/y driven by lower Revenue Operating profit commodity and logistics costs and structural 8% c
Slide 13: Printing Q4 FY23
Revenue decline y/y driven by soft demand, Printing Q4 FY23 market share loss and currency, offset in part by Supplies growth. Revenue up 4% q/q driven by seasonality and favorable pricing. Revenue Operating profit OP rate of 18.9% above the top of the range, reflecting disciplined execution and cos
Slide 14: Key Growth Areas
Key Growth Areas Collectively grew 10% q/q, two times faster than total revenue HYBRID SYSTEMS Q/Q revenue growth driven by Consumer peripherals seasonality. FY23 y/y revenue growth driven by Poly. Launched new conference room as-a-service subscription offering to help customers optimize usage and c
Slide 15: Sustainable Impact
Sustainable Impact Climate Action Human Rights Digital Equity Launched HP PC refurbishment program – We have reached over 482,000 workers Following Rwanda and Miami, HP launched the which is the first tool in a suite of services through human rights awareness and worker third NABU HP Creative Lab in
Slide 16: Select Cash & Debt Balances
Select Cash & Debt Balances $ Billions 1 $ Billions 4Q22 1Q23 2Q23 3Q23 4Q23 Gross cash2 3.2 1.8 1.9 1.7 3.2 Gross debt3 11.2 10.9 10.7 9.8 9.6 Net cash (debt)1,4 (8.0) (9.1) (8.8) (8.1) (6.4) 2 3 1. Net cash (debt) is defined as gross cash less gross debt. 2. Gross cash includes cash, cash equivale
Slide 17: Cash Flow & Shareholder Return
Cash Flow & Shareholder Return $ Millions Cash Flow $ Millions 1 Shares repurchased 125.9 millions 3.6 millions 26.6 millions 0.0 millions Dividend per share $1.0000 $1.0500 $0.2500 $0.2625 1. Free cash flow = Net cash provided by operating activities adjusted for net investment in leases and net in
Slide 18: Outlook
Outlook Q1 FY24 net EPS guidance GAAP diluted net EPS $0.60 – $0.70 Non-GAAP diluted net EPS1 $0.76 – $0.86 FY24 net EPS guidance GAAP diluted net EPS $2.68 – $3.08 Non-GAAP diluted net EPS2 $3.25 – $3.65 FY24 Free Cash Flow Guidance Free Cash Flow3 $3.1 - $3.6 billion 1. A description of HP’s use o
Slide 19: Non-GAAP Financial Information
Non-GAAP1 Financial Information $ in millions, except per share amounts Q4 FY23 Q3 FY23 Q4 FY22 % of Revenue % of Revenue % of Revenue Revenue $13,817 $13,196 $14,774 Cost of revenue 10,832 78.4% 10,374 78.6% 12,083 81.8% Total OpEx 1,738 12.6% 1,656 12.6% 1,573 10.6% Operating profit $1,247 9.0% $1
Slide 20: Q4 FY23 GAAP to Non-GAAP Bridge
Q4 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 $13,817 $13,817 Cost o
Slide 21: FY23 GAAP to Non-GAAP Bridge
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 Reven
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Slide 23: Supplemental Slides
Supplemental Slides @
Slide 24: 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 24
Slide 25: 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 25
Slide 26: Working Capital Metrics
Working Capital Metrics In Days 1 1. Cash conversion cycle = Days receivables + Days inventory – Days payable 26
Slide 27: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation $ in millions 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 Net cash provided by (used in) operating $1,657 $508 $394 $1,904 $4,463 $(16) $636 $976 $1,975 $3,571 activities Net investment in property, plant and (273) (178) (170) (144) (765) (192) (130) (137) (134) (
Slide 28: 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 29: 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 30: Q1 FY23 GAAP to Non-GAAP Bridge
Q1 FY23 GAAP to Non-GAAP Bridge $ in millions, except tax Acquisition and Debt Non-operating rate and per share Amortization of Restructuring and divestiture extinguishment Tax retirement GAAP intangible assets other charges adjustments related (credits) / Non-GAAP amounts charges costs charges Reve
Slide 31: 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 32: 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 33: Q3 FY22 GAAP to Non-GAAP Bridge
Q3 FY22 GAAP to Non-GAAP Bridge $ in millions, except tax Amortization of Restructuring Acquisition- Russia exit Tax Non-operating rate and per share GAAP intangible assets and other related charges charges adjustments retirement related Non-GAAP amounts charges (credits) / charges Revenue $14,648 $
Slide 34: 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 35: 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
Slide 36: FY21 GAAP to Non-GAAP Bridge
FY21 GAAP to Non-GAAP Bridge $ in millions, except tax Amortization of Restructuring Acquisition- Debt Defined benefit plan Tax Oracle Non-operating rate and per share GAAP intangible and other related Extinguishment settlement (gains) / adjustments litigation retirement related Non-GAAP amounts ass
Slide 37: Q4 FY21 GAAP to Non-GAAP Bridge
Q4 FY21 GAAP to Non-GAAP Bridge $ in millions, except tax Amortization of Restructuring Acquisition- Defined Benefit Oracle Non-operating rate and per share intangible and other related plan settlement Tax litigation retirement GAAP adjustments related (credits) / Non-GAAP amounts assets charges cha