Slide 1: Q4 FY21 Earnings announcement
HP INC. Q4 FY21 Earnings announcement November 23, 2021 http://investor.hp.com
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 GAAP basis. Definitions of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to the most
Slide 4: Q4 FY21 highlights
Q4 FY21 highlights • Net revenue of $16.7 billion, up 9.3% from the prior-year period and up 6.9% in constant currency 1 • Five key growth areas collectively grew revenue 12% year over year • Non-GAAP diluted net earnings per share2 of $0.94, above the previously provided outlook of $0.84 to $0.90 p
Slide 5: FY21 highlights
FY21 highlights • Net revenue of $63.5 billion, up 12.1% from the prior-year period and up 10.2% in constant currency 1 • Five key growth areas collectively grew revenue 17% year over year • Non-GAAP diluted net earnings per share2 of $3.79, above the previously provided outlook of $3.69 to $3.75 pe
Slide 6: Q4 FY21 results overview
Q4 FY21 results overview Growth CC 1 Non-GAAP OP Non-GAAP OP Non-GAAP OP Non-GAAP OP $ in millions Net revenue Growth y/y% y/y% $3 % of rev 3 $ y/y 3 % of rev y/y 3 Printing $4,879 1.1% 0.2% $830 17.0% $117 2.2 pts Personal Systems $11,795 13.1% 10.0% $764 6.5% $236 1.4 pts Corporate Investments / $
Slide 7: FY21 results overview
FY21 results overview Growth CC 1 Non-GAAP OP Non-GAAP OP Non-GAAP OP Non-GAAP OP $ in millions Net revenue Growth y/y% y/y% $3 % of rev 3 $ y/y 3 % of rev y/y 3 Printing $20,128 14.1% 13.2% $3,636 18.1% $1,141 4.0 pts Personal Systems $43,359 11.2% 8.8% $3,101 7.2% $789 1.3 pts Corporate Investment
Slide 8: Q4 FY21 mix by segment and region
Q4 FY21 mix by segment and region Net revenue Non-GAAP operating profit 2 By key segment and business unit1 By key segment3 Net revenue by region Workstations and Other Personal Sy stems Printing – $ 1.6 billion 6% Supplies 18% Desktops 15% Printing – 17.0% $16.7 Commercial 4 Printing 7% 52% of tota
Slide 9: FY21 mix by segment and region
FY21 mix by segment and region Net revenue Non-GAAP operating profit2 By key segment and business unit1 By key segment3 Net revenue by region Workstations and Other Personal Sy stems Printing – $ 6.7 billion 5% Supplies Desktops 20% 15% 18.1% $63.5 Printing – Printing 4 Commercial OP margin 54% of t
Slide 10: Revenue and non-GAAP diluted net EPS performance
1 Revenue and non-GAAP diluted net EPS performance 1 Revenue (Billions) Non-GAAP diluted net EPS $18 $1.20 $16 $0.92 $0.93 $0.94 $1.00 $14 $1.00 $12 $0.80 $0.65 $0.62 $10 $0.60 $0.60 $0.51 $0.49 $8 $6 $0.40 $4 $0.20 $2 $15.4 $14.6 $12.5 $14.3 $15.3 $15.6 $15.9 $15.3 $16.7 $0 $0.00 4Q19 1Q20 2Q20 3Q2
Slide 11: Revenue growth
Revenue growth y/y growth (%) 30% 27.3% 25% 20% 25.4% 15% 9.3% 10% 7.0% 6.6% 5% 6.9% 1.8% 0.5% (0.2%) 0.1% 7.0% 0% 4.1% 0.3% (0.6%) (10.1%) (1.0%) (5%) (2.1%) (10%) (11.2%) (15%) 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Revenue growth in constant currency 1 Revenue growth as reported 1. Adjusted
Slide 12: Regional revenue trends
Regional revenue trends y/y revenue growth % y/y revenue growth in constant currency %1 $7 35% $7 35% Americas (including U.S.) 30% 30% United 25% 20% 25% States $6 $6 20% 15% 15% 10% 10% 5% $5 $5 5% 0% (5%) 0% (10%) (5%) $4 (15%) $4 (10%) billions 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 % grow
Slide 13: Personal Systems
Personal Systems Q4 FY21 • Growing demand in commercial and mix shift to higher value Revenue Operating profit segments drove improved Windows market share sequentially $11.8 $764 • Strong revenue growth across multiple PC product categories with billion million Key improved commercial mix and doubl
Slide 14: Printing
Printing Q4 FY21 • Generated solid revenue growth and operating margins despite Revenue Operating profit ongoing supply constraints and manufacturing disruptions $4.9 billion $830 million Key messages • Strong double-digit growth in industrial graphics and MPS TCV bookings as enterprise continues it
Slide 15: Non-GAAP financial information
Non-GAAP1 financial information $ in millions, except Q4 FY21 Q3 FY21 Q4 FY20 per share amounts Revenue $16,675 $15,289 $15,258 Cost of revenue 13,410 80.4% 11,901 77.8% 12,579 82.4% Total OpEx 1,919 11.5% 1,885 12.4% 1,625 10.7% Operating profit $1,346 8.1% $1,503 9.8% $1,054 6.9% Interest and othe
Slide 16: Q4 FY21 bridge
Q4 FY21 GAAP to non-GAAP bridge $ in millions, except Defined benefit plan Non-operating Amortization of Restructuring and Acquisition-related Oracle litigation tax rate and per share GAAP settlement (gains)/ Tax adjustments retirement related Non-GAAP intangible assets other charges charges proceed
Slide 17: FY21 bridge
FY21 GAAP to non-GAAP bridge $ in millions, except Debt Defined benefit plan Non-operating Amortization of Restructuring and Acquisition-related Oracle litigation tax rate and per share GAAP extinguishment settlement (gains)/ Tax adjustments retirement related Non-GAAP intangible assets other charge
Slide 18: Select cash and debt balances
Select cash and debt balances Net cash (debt) 1 $ Billions $8.0 $6.0 $4.0 $ Billions 4Q20 1Q21 2Q21 3Q21 4Q21 $2.0 $0.0 Gross cash 2 5.1 4.2 3.4 3.4 4.3 ($2.0) Gross debt 6.3 6.2 6.2 7.2 7.6 ($4.0) Net cash (debt) 1,3 (1.1) (2.1) (2.8) (3.7) (3.3) ($6.0) ($8.0) 4Q20 1Q21 2Q21 3Q21 4Q21 2 Gross cash
Slide 19: Cash flow
Cash flow $ Millions $7,000 $6,409 $6,000 $5,000 $4,316 $4,167 $4,000 $3,891 $3,000 $2,848 $2,000 $1,874 $1,798 $938 $1,000 $0 FY20 FY21 Q420 Q421 1 Net cash provided by operations Free cash flow 1. Free cash flow includes net cash provided by operating activities adjusted for net investments in lea
Slide 20: Shareholder return
Shareholder return $ Millions $8,000 $7.2 billion $7,000 $6,000 $5,000 $4.1 billion $4,000 6,249 $3,000 3,107 $2.0 billion $2,000 $1.6 billion $1,000 1,340 1,754 997 938 $0 238 219 FY20 FY21 Q420 Q421 Shares repurchased 166.5 million 224.3 million 71.0 million 61.0 million Dividend per share $0.7048
Slide 21: Outlook
Outlook Q1 FY22 net EPS guidance GAAP diluted net EPS $0.92 – $0.98 Non-GAAP diluted net EPS1 $0.99 – $1.05 FY22 net EPS guidance GAAP diluted net EPS $3.86 – $4.06 Non-GAAP diluted net EPS1 $4.07 – $4.27 FY22 Free Cash Flow Guidance Free Cash Flow 2 At least $4.5 Billion 1. First quarter and fiscal
Slide 22: Supplemental slides
Supplemental slides
Slide 23: Inventory and accounts receivable
Inventory and accounts receivable Inventory Accounts receivable In Billions In Billions $9.0 16.0% $6.0 16.0% $8.2 $7.9 $5.4 $5.5 $8.0 $5.1 $5.3 $5.3 $7.5 14.0% $5.0 14.0% $4.9 $4.9 $5.0 $7.0 $6.7 13.2% $6.4 12.0% 12.0% % of revenue1 $6.0 12.5% % of revenue1 $5.9 12.3% $6.0 11.6% $4.0 11.1% 10.0% $4
Slide 24: PP&E and accounts payable
PP&E and accounts payable PP&E Accounts payable In Billions In Billions $3.0 6.0% $18.0 $2.8 $2.7 $2.7 $2.6 $15.9 $16.1 $2.5 $2.5 $2.5 $2.5 5.0% $16.0 $14.7 $15.0 $15.2 $2.4 $14.2 $14.3 4.8% $14.0 $12.8 4.7% 4.7% 4.6% % of revenue1 4.4% 4.2% 4.0% $12.0 $1.8 4.0% 4.0% $10.0 3.0% $1.2 $8.0 2.0% $6.0 $
Slide 25: Working capital metrics
Working capital metrics 140 120 100 80 60 40 20 0 -20 -40 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Days receivables 30 37 33 32 30 28 29 30 Days inventory 38 57 45 43 49 54 62 53 Days payable 98 128 108 105 109 110 120 108 Cash conversion cycle1 1 -30 -34 -30 -30 -30 -28 -29 -25 1. Cash conve
Slide 26: Q3 FY21 bridge
Q3 FY21 GAAP to non-GAAP bridge $ in millions, except Debt Non-operating Amortization of Restructuring and Acquisition-related tax rate and per share GAAP extinguishment Tax adjustments retirement related Non-GAAP intangible assets other charges charges amounts costs (credits) / charges Revenue $15,
Slide 27: Q2 FY21 bridge
Q2 FY21 GAAP to non-GAAP bridge $ in millions, except Non-operating Amortization of Restructuring and Acquisition-related tax rate and per share GAAP Tax adjustments retirement related Non-GAAP intangible assets other charges charges amounts (credits) / charges Revenue $15,877 $15,877 Cost of revenu
Slide 28: Q1 FY21 bridge
Q1 FY21 GAAP to non-GAAP bridge Non-operating $ in millions, except Amortization of Restructuring and Acquisition-related GAAP Tax adjustments retirement related Non-GAAP tax rate and per share amounts intangible assets other charges charges (credits) / charges Revenue $15,646 $15,646 Cost of revenu
Slide 29: FY20 bridge
FY20 GAAP to non-GAAP bridge Non-operating $ in millions, except Restructuring Debt Defined benefit Amortization of Acquisition- retirement tax rate and per share GAAP and other extinguishment plan settlement Tax adjustments Non-GAAP intangible assets related charges related (credits) amounts charge
Slide 30: Q4 FY20 bridge
Q4 FY20 GAAP to non-GAAP bridge Non-operating $ in millions, except Restructuring Defined benefit Amortization of Acquisition- retirement tax rate and per share GAAP and other plan settlement Tax adjustments Non-GAAP intangible assets related charges related (credits) amounts charges charges / charg
Slide 31: Q3 FY20 bridge
Q3 FY20 GAAP to non-GAAP bridge Non-operating Amortization $ in millions, except Restructuring Debt retirement of Acquisition- Tax tax rate and per GAAP and other extinguishment related Non-GAAP intangible related charges adjustments share amounts charges costs (credits) / assets charges Revenue $14
Slide 32: Q2 FY20 bridge
Q2 FY20 GAAP to non-GAAP bridge Non-operating $ in millions, except Amortization Restructuring and Acquisition-related Tax retirement related tax rate and per GAAP of Non-GAAP other charges charges adjustments (credits) / share amounts intangible assets charges Revenue $12,469 $12,469 Cost of revenu
Slide 33: Q1 FY20 bridge
Q1 FY20 GAAP to non-GAAP bridge Non-operating $ in millions, except Amortization Restructuring and Acquisition-related Tax retirement related tax rate and per GAAP of Non-GAAP other charges charges adjustments (credits) / share amounts intangible assets charges Revenue $14,618 $14,618 Cost of revenu
Slide 34: FY19 bridge
FY19 GAAP to non-GAAP bridge Non-operating $ in millions, except Amortization retirement Restructuring and Acquisition- tax rate and per GAAP of other charges related charges Tax adjustments related (credits) Non-GAAP share amounts intangible assets / charges Revenue $58,756 $58,756 Cost of revenue
Slide 35: Q4 FY19 bridge
Q4 FY19 GAAP to non-GAAP bridge Non-operating $ in millions, except Amortization Restructuring and Acquisition-related Tax retirement related tax rate and per GAAP of Non-GAAP other charges charges adjustments (credits) / share amounts intangible assets charges Revenue $15,407 $15,407 Cost of revenu
Slide 36: Thank you
Thank you