Slide 1: Earnings Announcement
Data courtesy of Print my Leg Earnings Announcement August 29, 2023 | Q3 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: Q3 FY23 Highlights
Q3 FY23 Highlights • Net revenue of $13.2 billion, down 9.9% from the prior-year period and down 7.4% in constant currency1 • Non-GAAP diluted net earnings per share2 of $0.86 , within the previously provided outlook of $0.81 to $0.91 per share • GAAP diluted net earnings per share of $0.76, above t
Slide 5: Q3 FY23 Results Overview
Q3 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 $4,263 (6.8)% (5.4)% $794 18.6% $(110) (1.2) pts Personal $8,932 (11.3)% (8.3)% $592 6.6% $(82) (0.1) pts Systems Corporate Inve
Slide 6: Q3 FY23 Mix by Segment and Region
Q3 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 47% 21% AMERICAS EMEA APJ $1.4 billion 45% 32% 23% Printing Printing 18.6% $13.2 Commercial 7% 57% 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. Adjusted to exclude the effect of foreign currency exchange fluctuations calculated by translating current period revenues using monthly exchange rates from the comparative
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 Q3 FY23
Revenue down y/y due to promotional pricing Personal Systems Q3 FY23 and currency, offset in part by volume resulting in share gains. Revenue up 9% q/q due to seasonality resulting in share gains. Revenue Operating profit Sequential OP dollar improvement driven by higher volumes, disciplined cost ma
Slide 10: Printing Q3 FY23
Printing Q3 FY23 Revenue decline y/y driven by lower hardware volumes, competitive pricing, and currency. Revenue Operating profit OP rate down y/y due to competitive pricing and currency, partially offset by structural 7% y/y cost reductions and mix. $4.3 billion 5% CC1 $794 million 18.6% of revenu
Slide 11: Key Growth Areas
Key Growth Areas Collectively grew revenue in Q3 FY23, despite continued macro headwinds HYBRID SYSTEMS Y/Y revenue growth driven by Poly. Introduced the Poly Studio X52 all-in-one video bar for mid-sized meeting spaces, that features AI smart camera technology, Poly NoiseBlockAI and Acoustic Fence
Slide 12: Sustainable Impact
Sustainable Impact Climate Action Human Rights Digital Equity On track to plant nearly 6 million trees by the Launched Million Makers, in partnership with Starting in 2015, HP committed to enable end of 2023, since starting our program with Bluenumber, activating innovative technology better learnin
Slide 13: Select Cash & Debt Balances
Select Cash & Debt Balances $ Billions 1 $ Billions 3Q22 4Q22 1Q23 2Q23 3Q23 Gross cash2 5.4 3.2 1.8 1.9 1.7 Gross debt3 11.1 11.2 10.9 10.7 9.8 Net cash (debt)1,4 (5.8) (8.0) (9.1) (8.8) (8.1) 2 3 1. Net cash (debt) is defined as gross cash less gross debt. 2. Gross cash includes cash, cash equival
Slide 14: Cash Flow & Shareholder Return
Cash Flow & Shareholder Return $ Millions Cash Flow $ Millions 1 Shares repurchased 125.9 million 3.6 million 29.3 million 0.0 million Dividend per share $1.0000 $0.7875 $0.2500 $0.2625 1. Free cash flow = Net cash provided by operating activities adjusted for net investment in leases and net invest
Slide 15: Outlook
Outlook Q4 FY23 net EPS guidance GAAP diluted net EPS $0.65 – $0.77 Non-GAAP diluted net EPS1 $0.85 – $0.97 FY23 net EPS guidance GAAP diluted net EPS $2.95 – $3.07 Non-GAAP diluted net EPS2 $3.23 – $3.35 FY23 Free Cash Flow guidance Free Cash Flow3 Approximately $3.0 billion 1. Fourth quarter of fi
Slide 16: Non-GAAP Financial Information
Non-GAAP1 Financial Information $ in millions, except per share amounts Q3 FY23 Q2 FY23 Q3 FY22 % of Revenue % of Revenue % of Revenue Revenue $13,196 $12,907 $14,648 Cost of revenue 10,374 78.6% 9,993 77.4% 11,764 80.3% Total OpEx 1,656 12.6% 1,807 14.0% 1,510 10.3% Operating profit $1,166 8.8% $1,
Slide 17: 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
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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 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 YTD23 Net cash provided by (used in) operating $1,657 $508 $394 $1,904 $4,463 $(16) $636 $976 $1,596 activities Net investment in property, plant and (273) (178) (170) (144) (765) (192) (130) (137) (459) equipment Ne
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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
Slide 33: Q3 FY21 GAAP to Non-GAAP Bridge
Q3 FY21 GAAP to Non-GAAP Bridge $ in millions, except tax rate Amortization of Restructuring Acquisition- Debt Non-operating and per share amounts GAAP intangible and other related charges extinguishment Tax adjustments retirement related Non-GAAP assets charges costs (credits) / charges Revenue $15