Slide 1: Earnings Announcement Q4 FY24
Data courtesy of Print my Leg Earnings Announcement November 26, 2024 | Q4 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: Q4 FY24 Highlights
Q4 FY24 Highlights • Net revenue of $14.1 billion, up 2% from the prior-year period and up 2% in constant currency1 • Non-GAAP diluted net earnings per share2 of $0.93, within the previously provided outlook of $0.89 to $0.99 per share • GAAP diluted net earnings per share of $0.93, above the previo
Slide 5: FY24 Highlights
FY24 Highlights • Net revenue of $53.6 billion, down 0.3% from the prior-year period and down 0.2% in constant currency1 • Non-GAAP diluted net earnings per share2 of $3.38, within the previously provided outlook of $3.35 to $3.45 per share • GAAP diluted net earnings per share of $2.81, above the p
Slide 6: Q4 FY24 Results Overview
Q4 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 $4,452 0.8% 1.5% $874 19.6% $38 0.7 pts Personal $9,591 2.1% 2.6% $550 5.7% $(81) (1.0) pts Systems Corporate Investments / $12
Slide 7: FY24 Results Overview
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 $17,338 (3.8)% (3.2)% $3,290 19.0% $(109) 0.1 pts Personal $36,195 1.4% 1.3% $2,194 6.1% $65 0.1 pts Systems Corporate Investments
Slide 8: Q4 FY24 Mix by Segment and Region
Q4 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 46% 21% $1.4 billion AMERICAS EMEA APJ 43% 33% 24% Printing $14.1 Commercial5 9% Printing 61% of total 19.6%
Slide 9: FY24 Mix by Segment and Region
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 48% 21% AMERICAS EMEA APJ $5.5 billion 43% 34% 23% Printing Printing $53.6 Commercial5 9% 60% of total 19.0% OP
Slide 10: Revenue & Non-GAAP Diluted Net EPS Performance
Revenue & Non-GAAP Diluted Net EPS Performance Revenue (Billions) y/y growth (%) Non-GAAP diluted net EPS 2 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 r
Slide 11: 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 12: Personal Systems Q4 FY24
Personal Systems Q4 FY24 Revenue up 2% y/y driven by higher commercial volume and increased ASPs, partially offset by a decline in consumer volume. Revenue Operating profit OP rate down y/y, reflecting higher commodity costs and continued strategic $9.6 $550 2% y/y investments, offset in part by rep
Slide 13: Printing Q4 FY24
Printing Q4 FY24 Revenue up 1% y/y, driven by Supplies and key growth areas, partially offset by competitive pricing. Revenue Operating profit OP rate up y/y driven by favorable mix, disciplined cost management and savings $4.5 $874 1% y/y from accelerated Future Ready actions. 19.6% 2% y/y CC 1 of
Slide 14: Key Growth Areas
Key Growth Areas Collectively grew revenue mid-single digits in FY24 HYBRID SYSTEMS Q4 revenue y/y growth driven by strong performance in peripherals, voice, and video collaboration. Expanded our portfolio of video conferencing room solutions with Poly VideoOS 4.4 software, bringing new AI capabilit
Slide 15: Q4'24 Sustainable Impact
Q4’24 Sustainable Impact Climate Action Human Rights Digital Equity and Philanthropy • Received MSCI ESG AA rating, recognizing • HP recognized by Great Place to Work 2024 – • 2025 Digital Equity Accelerator will focus on HP as a leader among 122 companies in USA, India, Australia, & Singapore offer
Slide 16: Select Cash & Debt Balances
Select Cash & Debt Balances $ Billions 1 Net Cash (Debt) $ Billions 4Q23 1Q24 2Q24 3Q24 4Q24 Gross cash2 3.2 2.4 2.5 2.9 3.3 Gross debt3 9.6 9.8 9.7 9.7 9.7 Net cash (debt)1,4 (6.4) (7.4) (7.2) (6.8) (6.5) 2 3 1. Net cash (debt) is defined as gross cash less gross debt 2. Gross cash includes cash, c
Slide 17: Cash Flow & Shareholder Return
Cash Flow & Shareholder Return $ Millions Cash Flow $ Millions Shareholder Return 1 Shares repurchased 3.6 million 62.7 million 0.0 million 25.4 million Dividend per share $1.0500 $1.1024 $0.2625 $0.2756 1. Free cash flow = Net cash provided by operating activities adjusted for net investment in lea
Slide 18: Outlook & Assumptions
Outlook & Assumptions FY25 Key Assumptions FY25 Outlook Q1’25 Outlook Revenue GAAP diluted net EPS GAAP diluted net EPS Grow in-line with market $3.06 – $3.36 $0.57-$0.63 Non-GAAP OI&E1,3 Non-GAAP diluted net EPS1,2 Non-GAAP diluted net EPS1,2 ~($0.6B) $3.45 – $3.75 $0.70 – $0.76 Corporate Other Fre
Slide 19: Non-GAAP Financial Information
Non-GAAP Financial Information 1 $ in millions, except per share amounts Q4 FY24 Q3 FY24 Q4 FY23 % of Revenue % of Revenue % of Revenue Revenue $14,055 $13,519 $13,817 Cost of revenue 11,054 78.6% 10,613 78.5% 10,832 78.4% Total OpEx 1,801 12.9% 1,817 13.4% 1,738 12.6% Operating profit $1,200 8.5% $
Slide 20: Q4 FY24 GAAP to Non-GAAP Bridge
Q4 FY24 GAAP to Non-GAAP Bridge $ in millions, except Acquisition and Debt Non-operating tax rate and per Amortization of Restructuring and divestiture extinguishment Tax retirement GAAP intangible assets other charges adjustments related (credits) / Non-GAAP share amounts charges costs charges Reve
Slide 21: FY24 GAAP to Non-GAAP Bridge
FY24 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 costs (credits) / charges Revenue
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Slide 23: Supplemental Slides
Supplemental Slides @
Slide 24: 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 24
Slide 25: 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 25
Slide 26: Working Capital Metrics
Working Capital Metrics In Days 1 1. Cash conversion cycle = Days receivables + Days inventory – Days payable 26
Slide 27: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation $ in millions 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 Net cash (used in)/ provided by operating $(16) $636 $976 $1,975 $3,571 $121 $581 $1,424 $1,623 $3,749 activities Net investment in property, plant and (192) (130) (137) (134) (593) (158) (119) (162) (153)
Slide 28: Q3 FY24 GAAP to Non-GAAP Bridge
Q3 FY24 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 $13,519 $13,519 Cost o
Slide 29: 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 intangible assets other charges divestiture adjustments retirement related Non-GAAP share amounts charges (credits) / charges Revenue $12,800 $12,800 Cost o
Slide 30: 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 intangible assets other charges divestiture adjustments retirement related Non-GAAP share amounts charges (credits) / charges Revenue $13,185 $13,185 Cost o
Slide 31: 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 intangible assets and other divestiture Extinguishment Tax adjustments retirement related Non-GAAP amounts charges charges benefit (credits) / charges Reven
Slide 32: 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 and per share amounts GAAP intangible assets other charges divestiture charges Tax adjustments retirement related Non-GAAP (credits) / charges Revenue $13,817 $13,817 Cost o
Slide 33: Q3 FY23 GAAP to Non-GAAP Bridge
Q3 FY23 GAAP to Non-GAAP Bridge $ in millions, except Acquisition and Debt Non-operating tax rate and per Amortization of Restructuring and divestiture extinguishment Tax retirement GAAP intangible assets other charges adjustments related (credits) / Non-GAAP share amounts charges benefit charges Re
Slide 34: 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 35: 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 intangible assets other charges divestiture extinguishment adjustments retirement related Non-GAAP amounts charges costs (credits) / charges Reve
Slide 36: 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 37: 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