Hp Inc. · NYSE:HPQ
Hp — Investor Day (October 2018)
25 slides from Hp's investor day presentation, Oct 3, 2018
Slide 1: Enrique Lores | Imaging & Printing
ENRIQUE LORES I IMAGING & PRINTING 1 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
Slide 2: Forward-looking statements
This presentation contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP Inc. and its consolidated subsidiaries (“HP”) may differ materially from those expressed or im
Slide 3: Non-GAAP financial measures
HP has included non-GAAP financial measures in this presentation to supplement HP’s consolidated financial statements presented on a GAAP basis. Definitions of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial me
Slide 4: © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to
4 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
Slide 5: Y/Y growth by segment
Y/Y GROWTH1,2 +12% +13% +3% +6% +4% +5% +7% +1% -4% -9% -8% -10% -9% -12% -15% -17% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 YTD YTD YTD YTD 1. FY18 includes the impact of acquisition of Samsung’s Printing business 2. CC = Constant Currency; adjusted to exclude
Slide 6: 9%, +2pts
>20% 9%, +2pts >10% Adoption Rate A3 Unit Share and Page Growth Y/Y4 in FY181 Growth Y/Y CQ2’183 >30% SAMSUNG 10 Y/Y Growth in Enrollees Printing C500 Press Customer in FY182 Contracts 1. Full year estimate based on participating retailers in U.S., U.K., France, Germany and Spain 2. Full year estima
Slide 7: The Power of Print
THE POWER OF PRINT 7 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
Slide 8: Print market size and growth
Media ~$20B Graphics ~$50B 3% ~3X Digital vs. analog growth 1 ~$210B Office Flat ~1% Growth of office contractual 1 1% CAGR ~$100B Home -2% >8% Growth of home subscription, Ink Tank and lifestyle photo 1 ~$40B CY18 1. 2018-22 data are projections based on available data and estimates, March 2018; So
Slide 9: Core, Growth, Future
CORE GROWTH FUTURE • Reignite the home • Disrupt contractual copier business • Lead 3D printing • Grow profitable office share • Transform graphics industries BRAND & GTM IP & TECHNOLOGY BIG DATA SCALE & COST Note: 3D Printing image – courtesy of Phoenix Children’s Hospital; Heart of Jemma 9 © Copyr
Slide 10: © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to
10 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
Slide 11: Print from any device, integrating into the evolving workplace
PRINT FROM ANY DEVICE, INTEGRATING INTO THE TO ANY HP PRINTER, ANYWHERE1 EVOLVING WORKPLACE 1. Visit www.hp.com/go/mobileprinting 11 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
Slide 12: Secure the device, data, document
SECURE THE SECURE THE SECURE THE DEVICE DATA DOCUMENT HP Sure Start with Self-healing Encrypted hard drives Roam Mobile Print Solution Whitelisting Run-time intrusion detection with Self-healing Encrypted communications HP Access Control (in transit and at rest) (with Data Loss Protection) HP Connec
Slide 13: Home printing metrics
~10% ~2 years >20% 11.5% HOME INSTALLED TO BE ACCRETIVE VS. Y/Y UNIT GROWTH UNIT SHARE IN EMERGING BASED PENETRATION1 TRADITIONAL MODEL2 FY183 MARKETS (CQ2’18)4 1. For US and UK; Q3FY18 estimate; 2. HP Internal analysis; 3. Full year estimate; 4. Based on CQ2’18 IDC Emerging Market share 13 © Copyri
Slide 14: Apogee acquisition note
Note: Closing of the Apogee acquisition is pending regulatory review and other customary closing conditions 14 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
Slide 15: Corporate and public sector, mid-market, micro-SMB channels
Direct CORPORATE & PUBLIC SECTOR MPS IT VARs & Office Equipment Dealers MID-MARKET Apogee1 MICRO-SMB 1. Closing of the Apogee acquisition is pending regulatory review and other customary closing conditions 15 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject t
Slide 16: © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to
16 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
Slide 17: Indigo and PageWide Press growth
>10% >15% >10% >50% Indigo 12000 PWP T240 Indigo 6900 T400S 1. H1 FY18 vs. H1 FY17 2. H1 FY18 vs. H1 FY17 including flexible packaging, folding and corrugated pre print 17 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
Slide 18: © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to
~300 18 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
Slide 19: Customers across beverage, food, personal care and retail
COCA-COLA DIAGEO DANONE NESTLE BEVERAGE KIMBERLY-CLARK LOTTE XYLITOL FOOD ~300 PERSONAL CARE JOHNSON & JOHNSON MONDELEZ RECKITT INTERNATIONAL BENCKISER T-MOBILE OTHER RETAIL & ZEB ELECTRONICS SMART ICELAND ELLE SONY MAGAZINE 19 © Copyright 2018 HP Development Company, L.P. The information contained
Slide 20: Drive recurring revenue with supplies and services
CORE GROWTH FUTURE • Reignite the home • Disrupt contractual copier business • Lead 3D printing • Grow profitable office share • Transform graphics industries BRAND & GTM IP & TECHNOLOGY BIG DATA SCALE & COST DRIVE RECURRING REVENUE WITH SUPPLIES & SERVICES Note: 3D Printing image –courtesy of Phoen
Slide 21: FY19 4-box driver trends
FY19 4-BOX DRIVER TRENDS1 Mix Quality Usage/Unit HOME = OFFICE = GRAPHICS = 1. Data are projections based on currently available data and estimates; Samsung revenue to be classified in Home and Office in FY19. Changed vs. last year = Directional trend 2. Based on mix of unit shipments, shows value r
Slide 22: Home subscription, contractual click charge model
HOME SUBSCRIPTION CONTRACTUAL CLICK CHARGE MODEL 22 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
Slide 23: Printing-as-a-Service revenue opportunity
~15% PRINTING-AS-A-SERVICE1 Opportunity to capture more ~30% services revenue and profit pool Printing-as-a-Service helps secure supplies share Supplies to be delivered both TRANSACTIONAL2 transactional and As-a-Service over time Strong recurring revenue business model FY’18 FY’19 FY’20 FY’21 FY’22
Slide 24: FY16 to FY19 and beyond
FY19 & BEYOND FY18 FY17 DRIVE PRINTING-AS-A- FY16 SERVICE GROWTH PROFITABLE GROWTH SUPPLIES BUILD THE STABILIZATION FOUNDATION 24 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
Slide 25: Thank you
THANK YOU SECURITIES ANALYST MEETING 2018 25 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.