Lenovo Group Limited · HKEX:992
Lenovo — Q3 2021 Earnings Presentation
26 slides from Lenovo's earnings presentation, Feb 3, 2021
Slide 1: 3QFY20/21 Earnings Announcement
3QFY20/21 Earnings Announcement Feb 3, 2021 2020 Lenovo Internal. All rights reserved.
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains “forward-looking statements” which are statements that refer to expectations and plans for the future and include, without limitation, statements regarding Lenovo’s future results of operations, financial condition or business prospects as well as
Slide 3: Yuanqing Yang, Chairman & CEO
Yuanqing Yang Chairman & CEO Feb 3, 2021 2020 Lenovo Internal. All rights reserved.
Slide 4: Group: Best Performance in Lenovo's History
Group: Best Performance in Lenovo’s History • Record Revenue, Pre-Tax Income, Net Income • Revenue: $17.2B, up 22.3% YOY, $2.7B higher than the previous record • Pre-Tax Income: $591M, up 51.6% YOY • Net Income: $395M, up 53.1% YOY • All core businesses delivered both top-line and bottom-line growth
Slide 5: IDG PCSD: Record Results Across the Board
IDG PCSD1: Record Results PCSD Revenue ($B) PCSD PTI ($M) PCSD Margin (%) Across the Board +26.5% 14 +35% 92 5 +0.4pt 6.6 11.1 68 6.2 4 • Revenue up 26.5% YOY, new record • PTI up 35% YOY, new record Q3 1920 Q3 2021 Q3 1920 Q3 2021 Q3 1920 Q3 2021 • PTI margin 6.6%, new record • PC market share of 2
Slide 6: IDG PCSD: Record Results Across the Board
IDG PCSD: Record Results PC Segment Volume & Revenue Growth YOY (%) Across the Board Tablet 182.5% 120.6% 60.9% Gaming 58.4% 31.5% Thin/Light • Strong revenue & volume growth in high- 54.7% Revenue 40.4% Volume growth, premium segments Visuals 25.4% 16.8% • Strong traditional PC performance across a
Slide 7: IDG PCSD: Outlook
WW PC Market Volume (M units) IDG PCSD: Outlook 91.4 CY2020 83 73.9 302 • New lifestyle driving sustainable 54.1 demand surge for PC & Tablet • Upgrade from One-phone-per-person to One-PC/Tablet-per-person • Capture growth with innovation & Q1 2020 Q2 2020 Q3 2020 Q4 2020 operation excellence WW Tab
Slide 8: IDG Mobile: Record Profit, Double-digit Growth
IDG Mobile: Record Profit, Mobile Revenue, PTI* ($M) Double-digit Growth +10.1% +32M 1381 1521 3 10 • Returned to profitability since the pandemic, -… record profit since acquisition • Revenue up 10.1% YOY Q3 1920 Q3 2021 Q3 1920 Q4 1920 Q1 2021 Q2 2021 Q3 2021 • Stronghold, Latin America & North Am
Slide 9: Data Center: Record Revenue, Improved Profitability
Data Center: Record Revenue, DCG Revenue ($M), PTI Margin (%) Improved Profitability +2.1% 1601 1634 • Record Revenue of $1.634B +0.9pts • Profitability up 0.9pts YOY • Cloud Service Provider & Enterprise/SMB1 revenue both achieved PtM growth YOY Q3 1920 Q3 2021 Q3 1920 Q3 2021 DCG Segment Revenue G
Slide 10: Data Center: Record Revenue, Improved Profitability
Data Center: Record Revenue, Storage Revenue Growth SDI, Service Revenue Improved Profitability v.s. Market YOY (%) Growth YOY (%) +11pts +7.7% 6.2% +4.9% • Storage: Record revenue, grew 11pts PtM • SDI1, Services: Record revenue • HPC2: Extended #1 position in TOP500 -4.9% • TruScale IaaS3 generati
Slide 11: Intelligent Transformation: Solid Progress
Intelligent Transformation: Solid Progress Software & Services Revenue ($M), YOY Growth (%) 1390 1500 • Software & Services: record revenue1 of $1.4B, 1230 up 35.9% YOY, 8.1% of group revenue 1300 § Attached Service up 26.2% YOY 1100 1023 1009 § Managed Service up 72.7%, DaaS2 grew 74% YOY 856 § Sol
Slide 12: Structuring Lenovo for the Future
Structuring Lenovo for the Future Intelligent Transformation 3S Strategy Smart IoT Smart Infrastructure Smart Verticals & Services IDG ISG SSG Intelligent Devices Group Infrastructure Solutions Group Solutions & Services Group China GEO / International Sales Organization Global Operations 2021 Lenov
Slide 13: Wong Wai Ming, Chief Financial Officer
Wong Wai Ming Chief Financial Officer Feb 3, 2021 2020 Lenovo Internal. All rights reserved.
Slide 14: Financial Highlights
Financial Highlights 3Q HIGHLIGHTS US$ Million 1 1 All-time high revenue and profit, thanks to consistent Revenue performance across three Business Groups, structural +22% 17,245 demand shift, and growth of service business YTY 16,000 14,103 14,519 2 Group’s net income* reached a new milestone with
Slide 15: Cash and Working Capital
Cash and Working Capital 3Q HIGHLIGHTS 1 US$ Million Net Debt Reduced by Net debt reduced by US$755 million YTY, thanks to US$755 1 1,400 1,242 1,280 Million YTY strong net cash generated from operating activities 1,231 1,200 1,094 1,000 2 Account Receivable days improved 8 days YTY 800 thanks to be
Slide 16: PC & Smart Device Business Group (PCSD)
PC & Smart Device Business Group (PCSD) US$ Million Revenue +27% 3Q HIGHLIGHTS YTY 14,011 14,000 11. Set new PCSD revenue and PTI records 11,074 11,462 10,603 11,000 8,499 12. Revenue up 27% YTY on operational excellence, 8,000 product innovation, and quick time-to-market to address new demand tailw
Slide 17: Mobile Business Group (MBG)
Mobile Business Group (MBG) US$ Million Revenue +10% 1 3Q HIGHLIGHTS 1,700 YTY 1,519 1,521 1,500 1,381 11. Revenue growth reached 10% YTY, thanks to 1,300 1,093 continued expansion of product portfolio and 1,100 carrier ranging 900 824 700 12. Significant boost of average selling prices on 500 stron
Slide 18: Data Center Business Group (DCG)
Data Center Business Group (DCG) Revenue US$ Million +2% YTY 1 3Q HIGHLIGHTS 1,800 1,600 1,612 1,634 1,600 1,479 1,400 1,213 11. New performance record in revenue; Cloud Service 1,200 Provider revenue up 4% YTY, with double-digit 1,000 growth boosted by cloud demand and continued 800 client diversif
Slide 19: Software and Services
Software and Services Software and Services revenue US$ Million +36% 3Q HIGHLIGHTS YTY 1,500 1,390 1,300 1,230 Software and Services revenue* up 36% YTY to 1,023 1,009 1,100 856 US$1.4 billon; contributing 8.1% of Group Revenue 900 700 500 300 ü Attached Services +26% YTY Q3 FY2019/20 Q4 FY2019/20 Q
Slide 20: Outlook Statement
Outlook Statement Group Mission: Leader and Enabler of Intelligent Transformation China beneficiary Service-led Transformation GPM expansion IDG: Drive growth with strong profitability; accelerate Software and Services •PCSD: Structural change from one PC per family to one PC per person is an on-goi
Slide 21: Appendix
Appendix - Financial Summary - Condensed Consolidated Income Statement - Condensed Consolidated Balance Sheet - Condensed Consolidated Cash Flow Statement 2020 Lenovo Internal. All rights reserved. 21
Slide 22: Financial Summary
Financial Summary US$ Million Q3 FY2020/21 Q3 FY2019/20 Y/Y% Revenue 17,245 14,103 22% Gross profit 2,786 2,265 23% Operation expense (2,085) (1,776) 17% Operating profit 701 489 44% Other non-operating expenses (110) (99) (12%) Pre-tax income 591 390 52% Taxation (160) (85) 89% Profit for the perio
Slide 23: Condensed Consolidated Income Statement
Condensed Consolidated Income Statement US$ Million Q3 FY2020/21 Q3 FY2019/20 Revenue 17,245 14,103 Cost of sales (14,459) (11,838) Gross profit 2,786 2,265 Selling and distribution expenses (863) (816) Administrative expenses (859) (609) Research and development expenses (398) (341) Other operating
Slide 24: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet US$ Million As at Dec 31, 2020 As at Sep 30, 2020 Non-current assets 14,195 13,779 Property, plant and equipment 1,530 1,439 Intangible assets 8,152 7,980 Others 4,513 4,360 Current assets 24,450 21,305 Bank deposits and cash 4,091 3,753 Trade, notes and other re
Slide 25: Condensed Consolidated Cash Flow Statement
Condensed Consolidated Cash Flow Statement US$ Million Q3 FY2020/21 Q3 FY2019/20 Q2 FY2020/21 Net cash generated from operating activities 1,963 538 771 Net cash used in investing activities (197) (215) (214) Net cash used in financing activities (1,525) (158) (388) Increase in cash and cash equival
Slide 26: thanks.
thanks. Smarter technology for all