Slide 1: Earnings Announcement
Data courtesy of Print my Leg Earnings Announcement May 29, 2024 | Q2 FY24
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: Q2 FY24 Highlights
Q2 FY24 Highlights • Net revenue of $12.8 billion, down 1% from the prior-year period and down 1% in constant currency1 • Non-GAAP diluted net earnings per share2 of $0.82, within the previously provided outlook of $0.76 to $0.86 per share • GAAP diluted net earnings per share of $0.61, within the p
Slide 5: Q2 FY24 Results Overview
Q2 FY24 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 $4,368 (7.8)% (7.4)% $829 19.0% $(70) 0.0 pts Personal Systems $8,426 3.1% 2.3% $508 6.0% $77 0.7 pts Corporate Investments / $6
Slide 6: Q2 FY24 Mix by Segment and Region
Q2 FY24 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 Commercial Supplies 49% 22% $1.3 billion AMERICAS EMEA APJ 44% 34% 22% Printing $12.8 Commercial5 10% Printing 62% of total 19.0%
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 EPS2 y/y growth (%) 1 2 1. CC = constant currency; adjusted to exclude the effect of foreign currency exchange fluctuations calculated by translating current period revenue using monthly exchange ra
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 Q2 FY24
Personal Systems Q2 FY24 Revenue up 3% y/y driven by higher volumes, led by commercial, partially offset by a decline in ASPs and continued weakness in China. Revenue Operating profit OP rate up 0.7 pts y/y driven by lower commodity and logistics costs and cost savings, $8.4 $508 3% y/y including Fu
Slide 10: Printing Q2 FY24
Printing Q2 FY24 Revenue down 8% y/y, driven by continued demand weakness, pricing pressure and share loss in hardware, as well as Supplies declines. Revenue Operating profit OP rate of 19% at top of range, flat y/y as disciplined cost management, including $4.4 $829 8% y/y Future Ready savings, and
Slide 11: Key Growth Areas
Key Growth Areas Collectively grew mid-single digit y/y in Q2 HYBRID SYSTEMS Q/Q revenue growth driven by strong performance in video collaboration. Expanded our portfolio of room solutions with a Poly Studio 360-degree camera, enabling a more immersive meeting experience. GAMING Y/Y revenue growth
Slide 12: Q2 FY24 Sustainable Impact
Q2 FY24 Sustainable Impact 1 Climate Action Human Rights Digital Equity HP was the only tech company globally to HP became a signatory to the United Nations Selected 10 non-profit organizations to take receive 2023 Triple “A” rating from CDP for Women’s Empowerment Principles, part in the FY24 Digit
Slide 13: Select Cash & Debt Balances
Select Cash & Debt Balances $ Billions 1 $ Billions 2Q23 3Q23 4Q23 1Q24 2Q24 Gross cash2 1.9 1.7 3.2 2.4 2.5 Gross debt3 10.7 9.8 9.6 9.8 9.7 Net cash (debt)1,4 (8.8) (8.1) (6.4) (7.4) (7.2) 2 3 1. Net cash (debt) is defined as gross cash less gross debt 2. Gross cash includes cash, cash equivalents
Slide 14: Cash Flow & Shareholder Return
Cash Flow & Shareholder Return $ Millions Cash Flow $ Millions 1 Shares repurchased 3.6 million 20.2 million 0.0 million 3.5 million Dividend per share $1.0500 $0.5512 $0.2625 $0.2756 1. Free cash flow = Net cash provided by operating activities adjusted for net investment in leases and net investme
Slide 15: Outlook
Outlook Q3 FY24 net EPS guidance GAAP diluted net EPS $0.63 – $0.77 Non-GAAP diluted net EPS1 $0.78 – $0.92 FY24 net EPS guidance GAAP diluted net EPS $2.60 – $2.90 Non-GAAP diluted net EPS1 $3.30 – $3.60 FY24 Free Cash Flow guidance Free Cash Flow2 $3.1 – $3.6 billion 1. Third quarter and fiscal 20
Slide 16: Non-GAAP Financial Information
Non-GAAP Financial Information 1 $ in millions, except per share amounts Q2 FY24 Q1 FY24 Q2 FY23 % of Revenue % of Revenue % of Revenue Revenue $12,800 $13,185 $12,907 Cost of revenue 9,777 76.4% 10,297 78.1% 9,993 77.4% Total OpEx 1,898 14.8% 1,782 13.5% 1,807 14.0% Operating profit $1,125 8.8% $1,
Slide 17: Q2 FY24 GAAP to Non-GAAP Bridge
Q2 FY24 GAAP to Non-GAAP Bridge $ in millions, except Amortization of Restructuring and Acquisition and Tax Non-operating tax rate and per GAAP divestiture retirement related Non-GAAP intangible assets other charges adjustments share amounts charges (credits) / charges Revenue $12,800 $12,800 Cost o
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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 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 YTD24 Net cash provided by/ (used $(16) $636 $976 $1,975 $3,571 $121 $581 $702 in) operating activities Net investment in property, (192) (130) (137) (134) (593) (158) (119) (277) plant and equipment Net investment in lea
Slide 24: Q1 FY24 GAAP to Non-GAAP Bridge
Q1 FY24 GAAP to Non-GAAP Bridge $ in millions, except Amortization of Restructuring and Acquisition and Tax Non-operating tax rate and per GAAP divestiture retirement related Non-GAAP intangible assets other charges adjustments share amounts charges (credits) / charges Revenue $13,185 $13,185 Cost o
Slide 25: FY23 GAAP to Non-GAAP Bridge
FY23 GAAP to Non-GAAP Bridge $ in millions, except tax Amortization of Restructuring Acquisition and Debt Non-operating rate and per share GAAP and other divestiture Extinguishment Tax adjustments retirement related Non-GAAP intangible assets amounts charges charges benefit (credits) / charges Reven
Slide 26: Q4 FY23 GAAP to Non-GAAP Bridge
Q4 FY23 GAAP to Non-GAAP Bridge $ in millions, except tax rate Amortization of Restructuring and Acquisition and Non-operating GAAP Tax adjustments retirement related Non-GAAP and per share amounts intangible assets other charges divestiture charges (credits) / charges Revenue $13,817 $13,817 Cost o
Slide 27: Q3 FY23 GAAP to Non-GAAP Bridge
Q3 FY23 GAAP to Non-GAAP Bridge $ in millions, except Acquisition and Debt Non-operating GAAP Amortization of Restructuring and Tax retirement Non-GAAP tax rate and per intangible assets other charges divestiture extinguishment adjustments share amounts charges benefit related (credits) / charges Re
Slide 28: 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 divestiture retirement related Non-GAAP intangible assets other charges adjustments share amounts charges (credits) / charges Revenue $12,907 $12,907 Cost o
Slide 29: Q1 FY23 GAAP to Non-GAAP Bridge
Q1 FY23 GAAP to Non-GAAP Bridge $ in millions, except tax Amortization of Restructuring and Acquisition and Debt Tax Non-operating rate and per share GAAP divestiture extinguishment retirement related Non-GAAP intangible assets other charges adjustments amounts charges costs (credits) / charges Reve
Slide 30: 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 and other divestiture Tax adjustments retirement related Non-GAAP intangible assets charges amounts charges charges (credits) / charges Revenue $62,9
Slide 31: 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 GAAP Tax adjustments retirement related Non-GAAP and per share amounts intangible assets other charges divestiture charges (credits) / charges Revenue $14,774 $14,774 Cost o
Slide 32: 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 and other retirement related Non-GAAP intangible assets related charges charges adjustments amounts charges (credits) / charges Revenue $14,648 $
Slide 33: 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 GAAP Tax adjustments retirement related Non-GAAP and per share amounts intangible assets other charges charges (credits) / charges Revenue $16,475 $16,475 Cost of revenu