Lenovo Group Limited · HKEX:992
Lenovo — Q4 2025 Earnings Presentation
31 slides from Lenovo's earnings presentation, May 22, 2025
Slide 1: Q4 and FY24/25 Earnings Announcement
Q4 and FY24/25 Earnings Announcement May 22, 2025 2025 Lenovo Internal. All rights reserved. 2025 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 the expectations and plans for the future and include, without limitation, statements regarding Lenovo’s future results of operations, financial condition or business prospects as we
Slide 3: Yuanqing Yang, Chairman & CEO
Yuanqing Yang Chairman & CEO May 22, 2025 2025 Lenovo Internal. All rights reserved.
Slide 4: One of the best years in Lenovo's history
One of the best years in Lenovo's history Significant growth Significant progress in revenue & profit in personal AI & enterprise AI all businesses healthy & strong building Hybrid AI leadership 2025 Lenovo Internal. All rights reserved. 4
Slide 5: Group: FY 2024/25 Full Year Performance
FY 2024/25 Full Year Performance Group: • Revenue $69.1 billion, up 21% YTY Strong revenue & profit • Net income(non-HKFRS) $1,441 million, up 36% YTY increase, • Net income margin(non-HKFRS) 2.1%, up 0.2pts YTY full speed driving Hybrid AI • All main businesses revenue double-digit YTY growth • Non
Slide 6: Group: Opportunities & Sustainable growth
Opportunities & Sustainable growth Hybrid AI creates huge opportunities Group: for devices, infrastructure, solutions & Strong revenue & profit services increase, On-device/Edge AI maturing, accelerating PC and smartphone refresh cycle full speed driving Hybrid AI AI deployment in enterprises ac
Slide 7: IDG FY 2024/25 Full Year Performance
FY 2024/25 Full Year Performance IDG • Revenue $50.5 billion, up 13% YTY Intelligent Devices Group: • Strong profitability, operating margin 7.2% Market leadership • PC: revenue up 11% YTY; market share 23.7%, 3.6 pts strengthened, higher than 2nd place; industry leading profitability; first- winnin
Slide 8: IDG Opportunities & Sustainable growth
Opportunities & Sustainable growth IDG Hybrid AI creating growth opportunities for device market Intelligent Devices Group: • AI PC momentum accelerating to Market leadership represent majority of the PC market strengthened, • AI software and use cases evolving to winning in personal AI generate mor
Slide 9: ISG FY 2024/25 Full Year Performance
FY 2024/25 Full Year Performance ISG • Revenue $14.5 billion, record high, up 63% YTY Infrastructure Solutions Group: • Significant operating margin improvement, 2 consecutive Hypergrowth, quarters of profitable growth profitable 2nd half year, • CSP hypergrowth, revenue up 92% YTY, achieving $10 bi
Slide 10: ISG Opportunities & Sustainable growth
Opportunities & Sustainable growth ISG ICT market shifting to hybrid infrastructure Infrastructure Solutions Group: • Hybrid infrastructure supported by “Client- Hypergrowth, Edge-Cloud(hybrid)-Network” architecture profitable 2nd half year, • Infrastructure market to grow at 18% in 2025 driving hyb
Slide 11: SSG FY 2024/25 Full Year Performance
FY 2024/25 Full Year Performance SSG Solutions & Services Group: • Revenue $8.5 billion, up 13% YTY High margin & high growth • Operating margin 21.1% transformation engine, • Support Services solid growth unleashing Lenovo Hybrid AI • Solutions & “as-a-Service” business revenue mix 58%, Advantage u
Slide 12: SSG Opportunities & Sustainable growth
Opportunities & Sustainable growth SSG Hybrid AI driving solutions & services demand growth Solutions & Services Group: • IT services market expected growth at High margin & high growth 4.6% in 2025 transformation engine, • New opportunities for AI-native solutions unleashing Lenovo Hybrid AI & serv
Slide 13: Group: Q4 2024/25 Q4 Performance
Q4 2024/25 Q4 Performance Group: • Group: revenue grew 23% YTY, double-digit growth Revenue & net income both across all main businesses; strong profit increase despite increased 20%+, tariffs impact, net income(non-HKFRS) up 25% YTY • IDG: enlarged PC market leadership, smartphone double-digit reve
Slide 14: Smarter AI for All
Smarter AI for All 2025 Lenovo Internal. All rights reserved. 14
Slide 15: Winston Cheng, Chief Financial Officer
Winston Cheng Chief Financial Officer May 22, 2025 2025 Lenovo Internal. All rights reserved.
Slide 16: Record performance fueled by Hybrid AI
Record performance Performances – FY24/25 fueled by Hybrid AI • Group revenue of $69B, +21% YTY to second- Revenue Geographical Sales (%) highest ever; Non-HKFRS net profit of $1.4B, +21% 80,000 up 36% YTY 70,000 61,947 69,077 Asia Pacific 19 +29% YTY 60,000 56,864 China 23 +26% YTY • Double-digit s
Slide 17: Robust Working Capital Management
Robust Working Performances Capital Management 55 Days of Inventory 53 1 Cash Conversion Cycle 3 • Net cash from operating activities 1 2 days 2 1 1 reached $1.1B, driving our cash balance 48 1 -2 days 0 -1 -2 to $4.7B 0 0 -4 days -3 -4 - -5 • Finance costs reduced by 10% YTY in FY22/23 FY23/24 FY24
Slide 18: IDG Performances
IDG Performances Intelligent Devices Group +13% Revenue +13% • Annual revenue of $51B, up by 13% YTY; 13,514 13,784 50,534 industry-leading operating margin of 7.2% 51,000 50,000 49,000 49,371 10,463 11,422 11,814 48,000 47,000 • Global PC market share rose by 1pt YTY 46,000 45,000 44,000 44,599 43,
Slide 19: ISG Performances
ISG Performances Infrastructure Solutions Group Revenue +63% +63% • All-time revenue record of $15B, up by 14,523 63% YTY, driven by a successful dual 16,000 14,000 4,000 3,160 3,305 3,938 4,120 9,756 CSP and ESMB strategy 12,000 10,000 8,000 8,922 2,533 6,000 4,000 • Profitability turnaround in 2HF
Slide 20: SSG Performances
SSG Performances Solutions & Services Group Revenue +13％ +18% • Accomplished record revenue of $8.5B, 9,000 7,472 8,457 4,000 +13% YTY 8,000 6,663 7,000 2,257 6,000 2,165 2,150 1,820 1,885 5,000 4,000 • Generated a record operating profit of 3,000 2,000 1,000 $1.8B, +15% YTY - 0 FY22/23 FY23/24 FY24
Slide 21: Resilient Growth Performances – Q4 FY24/25
Resilient Growth Performances – Q4 FY24/25 • Group revenue of $17B, up 23% YTY; Non-HKFRS net income of $278M, up 25% Revenue Geographical Sales (%) +23% YTY, despite a notable tariff impact Asia Pacific 20 +29% YTY 18,796 • Double-digit YTY revenue growth across 17,850 16,984 China 21 +36% YTY 15,4
Slide 22: Lenovo: A Leader in ESG
Lenovo: A Leader in ESG A More Sustainable Future for All Accelerating environmental Smarter social impact Governing ethical innovation progress Included in CDP’s Named 2025 Dream Signatory supporter to Corporate A list for Employer by Forbes the United Nations 2024 Global Compact Recognized as a Aw
Slide 23: Outlook
Outlook Group Mission is to Lead and Enable Intelligent Transformation • Improve net income margin by leveraging Hybrid AI leadership for secular growth and market share expansion • Pioneer innovation in Hybrid AI era with comprehensive Personal and Enterprise AI offerings • Strategic partnership wi
Slide 24: Supplemental Financial Materials
Supplemental Financial Materials - Financial Summary - Condensed Consolidated Income Statement - Condensed Consolidated Balance Sheet - Condensed Consolidated Cash Flow Statement - Supplemental Non-HKFRS Measures 2025 Lenovo Internal. All rights reserved. 24
Slide 25: Financial Summary
Financial Summary US$ Million Q4 23/24 Q4 24/25 Y/Y% FY23/24 FY24/25 Y/Y% Revenue 13,833 16,984 23% 56,864 69,077 21% Gross profit 2,428 2,783 15% 9,803 11,098 13% Operating expenses (1,939) (2,452) 26% (7,797) (8,934) 15% Operating profit 489 331 -32% 2,006 2,164 8% Operating profit (non-HKFRS) 469
Slide 26: Condensed Consolidated Income Statement
Condensed Consolidated Income Statement US$ Million Q4 23/24 Q4 24/25 FY23/24 FY24/25 Revenue 13,833 16,984 56,864 69,077 Cost of sales (11,405) (14,201) (47,061) (57,979) Gross profit 2,428 2,783 9,803 11,098 Selling and distribution expenses (849) (927) (3,309) (3,585) Administrative expenses (665
Slide 27: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet US$ Million As of Mar 31, 2024 As of Mar 31, 2025 Current assets 22,688 27,905 Bank deposits and cash 3,626 4,817 Trade, notes and other receivables 11,930 14,731 Inventories 6,703 7,924 Others 429 433 Non-current assets 16,063 16,326 Property, plant and equipmen
Slide 28: Condensed Consolidated Cash Flow Statement
Condensed Consolidated Cash Flow Statement US$ Million Q4 23/24 Q4 24/25 FY23/24 FY24/25 Net cash generated from/(used in) operating activities 543 (1,022) 2,011 1,099 Net cash used in investing activities (250) (196) (1,283) (1,056) Net cash (used in)/generated from financing activities (155) 1,963
Slide 29: Supplemental Non-HKFRS Measures
Supplemental Non-HKFRS Measures US$ Million Q4 23/24 Q4 24/25 Profit Profit Profit Profit Profit Profit Operating before for the attributable Operating before for the attributable profit taxation period to equity profit taxation period to equity holders holders As reported 489 309 253 248 331 178 12
Slide 30: Supplemental Non-HKFRS Measures
Supplemental Non-HKFRS Measures US$ Million FY23/24 FY24/25 Profit Profit Profit Profit Operating before Profit attributable Operating before Profit attributable profit taxation for the year to equity profit taxation for the year to equity holders holders As reported 2,006 1,365 1,102 1,011 2,164 1,
Slide 31: Smarter technology thanks. Lenovo
Smarter technology thanks. Lenovo