Slide 1: Earnings Announcement
Data courtesy of Print my Leg Earnings Announcement August 28, 2024 | Q3 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: Q3 FY24 Highlights
Q3 FY24 Highlights • Net revenue of $13.5 billion, up 2% from the prior-year period and up 3% in constant currency1 • Non-GAAP diluted net earnings per share2 of $0.83, within the previously provided outlook of $0.78 to $0.92 per share • GAAP diluted net earnings per share of $0.65, within the previ
Slide 5: Q3 FY24 Results Overview
Q3 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 $4,143 (2.8)% (1.9)% $715 17.3% $(79) (1.3) pts Personal $9,369 4.9% 5.3% $599 6.4% $7 (0.2) pts Systems Corporate Investments /
Slide 6: Q3 FY24 Mix by Segment and Region
Q3 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% 20% $1.3 billion AMERICAS EMEA APJ 45% 33% 22% Printing $13.5 Commercial5 9% Printing 54% of total 17.3%
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 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 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 Q3 FY24
Personal Systems Q3 FY24 Revenue up 5% y/y driven by higher commercial volume and increased ASPs, partially offset by a decline in consumer volume and continued weakness in China. Revenue Operating profit OP rate down 0.2 pts y/y driven by higher commodity costs, offset by repricing where $9.4 $599
Slide 10: Printing Q3 FY24
Printing Q3 FY24 Revenue down 3% y/y, driven by the slower pace of market recovery and a more aggressive pricing environment. Revenue Operating profit OP rate of 17.3%, down 1.3pts y/y with headwinds from pricing and increased $4.1 $715 3% y/y investments, not fully offset by savings from 17.3% Futu
Slide 11: Key Growth Areas
Key Growth Areas Collectively grew mid-single digit y/y in Q3 HYBRID SYSTEMS Double-digit Y/Y revenue growth driven by strong performance in video collaboration. Expanded our portfolio of room solutions with HP AI Studio, a high-performance video conferencing solution for meeting spaces. GAMING Seas
Slide 12: Q3'24 Sustainable Impact
Q3’24 Sustainable Impact Climate Action Human Rights Digital Equity and Philanthropy Named to TIME's inaugural World's Most Ranked in the top 6 of our industry in Increased our HP Foundation and community Sustainable Companies list, ranked 1st in the America's Best Employers for Women 2024 contribut
Slide 13: Select Cash & Debt Balances
Select Cash & Debt Balances $ Billions 1 Net Cash (Debt) $ Billions 3Q23 4Q23 1Q24 2Q24 3Q24 Gross cash2 1.7 3.2 2.4 2.5 2.9 Gross debt3 9.8 9.6 9.8 9.7 9.7 Net cash (debt)1,4 (8.1) (6.4) (7.4) (7.2) (6.8) 2 3 1. Net cash (debt) is defined as gross cash less gross debt 2. Gross cash includes cash, c
Slide 14: Cash Flow & Shareholder Return
Cash Flow & Shareholder Return $ Millions Cash Flow $ Millions Shareholder Return 1 Shares repurchased 3.6 million 37.3 million 0.0 million 17.1 million Dividend per share $1.0500 $0.8268 $0.2625 $0.2756 1. Free cash flow = Net cash provided by operating activities adjusted for net investment in lea
Slide 15: Outlook
Outlook Q4 FY24 net EPS guidance GAAP diluted net EPS $0.74 – $0.84 Non-GAAP diluted net EPS1 $0.89 – $0.99 FY24 net EPS guidance GAAP diluted net EPS $2.62 – $2.72 Non-GAAP diluted net EPS1 $3.35 – $3.45 FY24 Free Cash Flow Guidance Free Cash Flow2 $3.1 – $3.6 billion 1. Fourth quarter and fiscal 2
Slide 16: Non-GAAP Financial Information
Non-GAAP Financial Information 1 $ in millions, except per share amounts Q3 FY24 Q2 FY24 Q3 FY23 % of Revenue % of Revenue % of Revenue Revenue $13,519 $12,800 $13,196 Cost of revenue 10,613 78.5% 9,777 76.4% 10,374 78.6% Total OpEx 1,817 13.4% 1,898 14.8% 1,656 12.6% Operating profit $1,089 8.1% $1
Slide 17: 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
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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 3Q24 YTD24 Net cash provided by/ (used $(16) $636 $976 $1,975 $3,571 $121 $581 $1,424 $2,126 in) operating activities Net investment in property, (192) (130) (137) (134) (593) (158) (119) (162) (439) plant and equipment N
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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
Slide 33: 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 intangible assets and other related charges charges adjustments retirement related Non-GAAP amounts charges (credits) / charges Revenue $14,648 $