The New Style of IT. Jim Merritt Managing Director & Senior Vice President, Enterprise Group, HP Asia Pacific Japan
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1 The New Style of IT Jim Merritt Managing Director & Senior Vice President, Enterprise Group, HP Asia Pacific Japan
2 A perspective today - Pulse of HP s business performance - Strategy: the New Style of IT - Mega IT trends and implications
3 We have a clear view of our journey Industry-leading company Acceleration Fix and rebuild Recovery and expansion FY15 FY16 Diagnosis and foundation FY14 FY13 FY12
4 Revenue growth y/y growth (%) HP Stock Price Revenue growth in constant currency (1) Revenue growth as reported (1)(2) 2.5% 1.3% 1.5% (2.3%) (3.0%) (6.1%) (7.0%) (7.9%) (2.9%) (2.5%) (3.0%) (4.9%) (4.1%) (6.7%) (4.3%) (5.6%) (9.0%) (10.1%) (6.9%) (8.2%) (1.5%) (2.8%) 0.3% (0.1%) (0.7%) (1.0%) 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 $11.71 $21.18 (1)(2) $24.94 $32.90 June 20 $ A reconciliation of specific adjustments to GAAP results for the current and prior periods is included on slide 17 and in the GAAP to non-gaap slides that appear as part of the supplemental slides of this presentation. A description of HP s use of non-gaap information is provided on slide 3 under Use of non-gaap financial information 2. Q4 FY2011 percentage shown is for non-gaap net revenue. All other percentages shown are for GAAP net revenue
5 Q2 FY14 APJ pan-hp business performance We are growing whilst our competition declines Delivered revenues of $5.3b - Up 1% YoY in USD, 6% in constant currency (CC). $7 Asia Pacific 25% Strong double digit growth in CC in key markets $6 15% - Japan, India, Hong Kong, Indonesia, New Zealand, Philippines, AEC are executing well. $5 $4 5% (5%) Highlights: - Enterprise Group: Both hardware and services businesses trending well with exceptionally strong performance in ISS. - Printing & Personal Systems: Strong PC demand in Win XP replacement in commercial space - Software: Challenging environment overall but strong performance in PSO, Arcsight and Fortify - Enterprise Services: All subregions grew operating profit in CC - HP Financial Services: Continued strong growth in direct financing volumes $3 billions 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Americas 43% EMEA 38% APJ 19% (15%) % growth
6 Our Strategy: Providing Solutions for Our Strategy: the New Style of IT Solutions for the New Style of IT
7 Cloud Mobility Big Data Security
8 Solutions for the New Style of IT Services Advise Transform Manage Finance Printers and Personal Systems Converged Infrastructure HP Software Printers PCs Tablets Servers Storage Networking IT Management Analytics Security Cloud Security Big Data Mobility
9 Enterprise Group vision Traditional IT Server Storage Networking Services New Style of IT HP Converged Infrastructure HP Software-Defined Data Center HP Converged Cloud
10 HP Enterprise Group strategy With modern architectures, optimized for today and tomorrow s workloads and web services Bridging from the traditional to the new style of IT Based on open standards Enabled through a broad ecosystem of partners Delivered any way you want to consume it
11 2013 was a year of accelerated innovation CI for SMB MicroServer ProLiant Gen8 Refresh ProLiant Bladesystem Gen8 Refresh Moonshot SL4500 Density Optimized Compute &Storage 2920 switch HP switch HP switch vswitch EMEA ECOPODS C7000 Blade Platinum Enclosure HP 6125XLG 10/40Gb Switch High Performance Component-level Cooling Apollo Virtual Connect 4.01 Datacenter Care Flexible Capacity Proactive Care CloudOS Next-Generation CloudSystem SL6500 Dense, shared serviceable, infrastructure SL2500 Dense Multinode SmartCache Next Gen Smart Array HP Secure Encryption & 12G SAS Capable HP MSA Storage Fusion 1.0 Blade & Rack Virtual Connect Next Gen Smart HP Update ConvergedSystem 100 for Hosted Desktops HP ConvergedSystem 300 for Virtualization HP StoreOnce Backup HP StoreVirtual Storage HP StoreAll Archive HP 3PAR StoreServ Storage Enterprise Wireless Controller Enterprise Controller HP OneView HP ConvergedSystem for SAP HANA Gen 1.2 HP ConvergedSystem 700 for Virtualization HP ConvergedSystem 300 for Vertica and we re just getting started
12 Storage for The New Style of IT Modern storage architectures for unpredictable and unconstrained demands Fabric Attach 3PAR StoreServ High-end, All-Flash, and midrange Tier-1 storage designed for virtualization and IT-as-a-Service XP7 Tier-1 high-end array for traditional data center apps and mainframe Storage Networking StoreFabric Fibre Channel Switches, Directors; HBAs; CNAs Backup Recovery & Archive StoreOnce Federated disk backup appliances with deduplication StoreAll Hyperscale file and object archive with rapid search StoreEver DAT tape; LT0 tape, DAS & LAN autoloader, MSL tape libraries; ESL tape libraries, Media Entry Software-Defined StoreVirtual Optimized converged storage appliances built for virtualization. StoreEasy NAS Gateways Appliances built on WSS 2012 MSA Entry level FC, iscsi, SAS arrays D-Series JBOD disk enclosures for direct attach StoreVirtual VSA Scale-out SDS for SMB, ROBO, and xsp virtualized servers StoreOnce VSA SDS with dedupe for protection of small sites and xsp BUaaS StoreFront and OneView Converged storage and CI management HP Converged Storage Traditional Storage Sustaining products Established products
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