Slide 1: Earnings Announcement
Data courtesy of Print my Leg Earnings Announcement AUGUST 30, 2022 | Q3 FY22
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, the results of HP Inc. and its consolidated subsidia
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 FY22 Highlights
Q3 FY22 Highlights • Net revenue of $14.7 billion, down 4.1% from the prior-year period and down 1.9% in constant currency1 • Non-GAAP diluted net earnings per share2 of $1.04, within the previously provided outlook of $1.03 to $1.08 per share • GAAP diluted net earnings per share of $1.08, above th
Slide 5: Key Growth Areas
Key Growth Areas Completed Poly acquisition accelerating our scale in peripherals and workforce solutions PERIPHERALS Double-digit revenue growth across our peripherals platform. Launched 27 new products, including Cloud MIX Buds by HyperX, the first true wireless solution in our portfolio. GAMING D
Slide 6: Q3 FY22 Results Overview
Q3 FY22 Results Overview Non-GAAP $ in Net Growth Growth CC1 Non-GAAP Non-GAAP Non-GAAP OP % of rev millions revenue y/y% y/y % OP $3 OP % of rev3 OP $ y/y3 y/y3 Printing $4,575 (6.3)% (5.3)% $911 19.9% $54 2.3 pts Personal $10,089 (3.0)% (0.3)% $695 6.9% $(174) (1.5) pts Systems Corporate Investmen
Slide 7: Q3 FY22 Mix by Segment and Region
Q3 FY22 Mix by Segment and Region Net revenue Non-GAAP operating profit2 Net revenue By key segment and business unit1 By key segment3 By region Workstations & Other Personal Systems 7% Printing Supplies $1.6 billion Desktops 19% AMERICAS EMEA APJ 17% Printing Commerical4 44% 32% 24% 7% Printing 19.
Slide 8: 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 (%) $18 $17.0 30% $1.20 120% $15.9 $16.7 $16.5 $1.10 27.3% $1.00 $1.08 $16 $15.3 $15.6 $15.3 25% $1.04 $14.7 100% $14.3 $1.00 $0.92 $0.93 $0.94 $14 20% 104.1% 25.4% 80% 82.4% $12 15%
Slide 9: Regional Revenue Trends
Regional Revenue Trends Billions % growth Billions % growth Americas United $7 35% $6 35% 30% 30% (including U.S.) 25% 20% States 25% 20% $6 $5 15% 15% 10% 10% 5% 5% $5 $4 0% 0% (5)% (5)% (10)% (10)% $4 (15)% $3 (15)% 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q
Slide 10: Personal Systems Q3 FY22
Personal Systems Q3 FY22 Commercial was above 65% revenue mix as commercial Windows-based revenue grew ~18% while consumer demand softness increased Operating margin at the high end of the range Revenue Operating profit reflecting favorable pricing, improved mix of higher commercial & premium catego
Slide 11: Printing Q3 FY22
Printing Q3 FY22 Revenue declined y/y on lower hardware volumes due to supply chain constraints, and softening consumer demand for hardware and supplies due to macro challenges Revenue Operating profit Solid commercial demand with growth in Industrial Graphics, 3D and Large Format, $4.6 $911 partial
Slide 12: Sustainable Impact
Sustainable Impact Climate Action Human Rights Digital Equity In fiscal year 2021, despite a 12% In FY2021, HP increased the number of In the last fiscal year, HP accelerated increase in revenue, HP reduced Black and African American executives digital equity for 4.3 million people in the absolute e
Slide 13: Select Cash & Debt Balances
Select Cash & Debt Balances $ Billions Net cash (debt)1 $6.0 $3.0 $ Billions 3Q21 4Q21 1Q22 2Q22 3Q22 $0.0 Gross cash2 3.4 4.3 3.4 4.5 5.4 ($3.0) Gross debt 7.2 7.6 7.1 9.1 11.1 ($6.0) Net cash (debt)1,3 (3.7) (3.3) (3.7) (4.7) (5.8) ($9.0) ($12.0) 3Q21 4Q21 1Q22 2Q22 3Q22 Gross cash2 Gross debt 1.
Slide 14: Cash Flow & Shareholder Return
Cash Flow & Shareholder Return $ Millions Cash Flow $ Millions Shareholder Return $7,187 $5,000 $7,200 $7,000 Share repurchase $6,409 $4,335 Dividend payment $6,000 $4,000 $5,000 6,249 $4,167 $3,000 $4,000 3,547 $3,000 $2,559 $2,000 $1,737 $2,032 $1,284 $2,000 $1,093 $975 $1,000 1,507 $1,000 1,029 $
Slide 15: Outlook
Outlook Q4 FY22 net EPS guidance Without Poly With Poly GAAP diluted net EPS $0.76 – $0.86 $0.44 – $0.542 Non-GAAP diluted net EPS1 $0.84 – $0.94 $0.79 – $0.892 FY22 net EPS guidance GAAP diluted net EPS $3.78 – $3.88 $3.46 – $3.562 Non-GAAP diluted net EPS1 $4.07 – $4.17 $4.02 – $4.122 FY22 Free Ca
Slide 16: Non-GAAP Financial Information
Non-GAAP1 Financial Information $ in millions, except per share amounts Q3 FY22 Q2 FY22 Q3 FY21 % of Revenue % of Revenue % of Revenue Revenue $14,664 $16,490 $15,289 Cost of revenue 11,764 80.2% 13,157 79.8% 11,901 77.8% Total OpEx 1,511 10.3% 1,889 11.4% 1,885 12.4% Operating profit $1,389 9.5% $1
Slide 17: Q3 FY22 GAAP to Non-GAAP Bridge
Q3 FY22 GAAP to Non-GAAP Bridge Non-operating $ in millions, except Amortization of Restructuring Acquisition- Russia Exit Tax retirement tax rate and per GAAP intangible and other related Non-GAAP charges adjustments related (credits) / share amounts assets charges charges charges Revenue $14,664 $
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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 $10 18% $6 16% $5.4 $5.5 $5.4 $9.0 $8.9 $5.3 $9 16% $5.2 $8.2 $5.0 $4.9 14% $8.2 $5 $7.9 $8 $7.5 $4.4 14% 12% 13.9% $7 $6.7 13.2% 13.7% $6.0 12% $4 12.3% 12.5% 12.6% 10
Slide 21: PP&E & Accounts Payable
PP&E & Accounts Payable PP&E ACCOUNTS PAYABLE In Billions Percentage of Revenue1 In Billions $3 8% $20 $18.1 $2.6 $2.6 $2.6 $2.6 $17.0 $2.5 $2.5 $2.5 $2.5 7% $15.9 $16.1 $16 $15.2 $15.5 $14.7 $15.0 6% $2 5% $12 4.6% 4% 4.4% 4.2% 4.0% 4.0% 4.0% 4.0% 4.0% $8 3% $1 2% $4 1% $0 0% $0 Oct20 Jan21 Apr21 J
Slide 22: Working Capital Metrics
Working Capital Metrics 140 120 100 80 60 40 20 0 (20) (40) 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Days receivables 32 30 28 29 30 27 29 27 Days inventory 43 49 54 62 53 59 61 63 Days payable 105 109 110 120 108 119 116 119 Cash conversion cycle1 (30) (30) (28) (29) (25) (33) (26) (29) 1. Cash conv
Slide 23: Q2 FY22 GAAP to Non-GAAP Bridge
Q2 FY22 GAAP to Non-GAAP Bridge $ in millions, except Restructuring Acquisition- Non-operating Amortization of Tax tax rate and per GAAP and other related retirement related Non-GAAP intangible assets adjustments share amounts charges charges (credits) / charges Revenue $16,490 $16,490 Cost of reven
Slide 24: Q1 FY22 GAAP to Non-GAAP Bridge
Q1 FY22 GAAP to Non-GAAP Bridge $ in millions, except Restructuring Non-operating tax rate and per Amortization of and other Acquisition- retirement related share amounts GAAP intangible assets charges related charges Tax adjustments (credits) / charges Non-GAAP Revenue $17,028 $17,028 Cost of reven
Slide 25: FY21 GAAP to Non-GAAP Bridge
FY21 GAAP to Non-GAAP Bridge Non-operating $ in millions, except Amortization Restructuring Acquisition- Debt Defined benefit Oracle retirement tax rate and per of intangible and other related Extinguishment plan settlement Tax litigation related (credits) / share amounts GAAP assets charges charges
Slide 26: Q4 FY21 GAAP to Non-GAAP Bridge
Q4 FY21 GAAP to Non-GAAP Bridge Defined Benefit Non-operating $ in millions, except Amortization Restructuring Acquisition- plan settlement Oracle retirement tax rate and per of intangible and other related (gains) / Tax litigation related (credits) share amounts GAAP assets charges charges charges
Slide 27: Q3 FY21 GAAP to Non-GAAP Bridge
Q3 FY21 GAAP to Non-GAAP Bridge Non-operating $ in millions, except Amortization Restructuring Acquisition- Debt retirement tax rate and per of intangible and other related extinguishment Tax related (credits) / share amounts GAAP assets charges charges costs adjustments charges Non-GAAP Revenue $15
Slide 28: Q2 FY21 GAAP to Non-GAAP Bridge
Q2 FY21 GAAP to Non-GAAP Bridge $ in millions, except Restructuring Non-operating tax rate and per Amortization of and other Acquisition- retirement related share amounts GAAP intangible assets charges related charges Tax adjustments (credits) / charges Non-GAAP Revenue $15,877 $15,877 Cost of reven
Slide 29: Q1 FY21 GAAP to Non-GAAP Bridge
Q1 FY21 GAAP to Non-GAAP Bridge $ in millions, except Restructuring Non-operating tax rate and per Amortization of and other Acquisition- retirement related share amounts GAAP intangible assets charges related charges Tax adjustments (credits) / charges Non-GAAP Revenue $15,646 $15,646 Cost of reven
Slide 30: FY20 GAAP to Non-GAAP Bridge
FY20 GAAP to Non-GAAP Bridge Defined Non-operating $ in millions, except Amortization Restructuring Acquisition- Debt Benefit plan retirement tax rate and per of intangible and other related extinguishme settlement Tax related (credits) share amounts GAAP assets charges charges nt costs charges adju
Slide 31: Q4 FY20 GAAP to Non-GAAP Bridge
Q4 FY20 GAAP to Non-GAAP Bridge Defined Benefit $ in millions, except Amortization Restructuring Acquisition- plan settlement Non-operating tax rate and per of intangible and other related (gains) / Tax retirement related share amounts GAAP assets charges charges charges adjustments (credits) / char
Slide 32: Q3 FY20 GAAP to Non-GAAP Bridge
Q3 FY20 GAAP to Non-GAAP Bridge Non-operating $ in millions, except Amortization Restructuring Acquisition- Debt retirement tax rate and per of intangible and other related extinguishment Tax related (credits) / share amounts GAAP assets charges charges costs adjustments charges Non-GAAP Revenue $14