Reinvention and Transformation in Personal Systems March 22,

Transcription

1 Reinvention and Transformation in Personal Systems March 22, Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice.

2 Forward-looking statements This presentation contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP Inc. and its consolidated subsidiaries ( HP ) may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of net revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred tax assets, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges; any statements of the plans, strategies and objectives of management for future operations, including the execution of the restructuring plans and any resulting cost savings, net revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief, including with respect to the timing and expected benefits of acquisitions and other business combination and investment transactions; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the need to address the many challenges facing HP s businesses; the competitive pressures faced by HP s businesses; risks associated with executing HP s strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP s products and the delivery of HP s services effectively; the protection of HP s intellectual property assets, including intellectual property licensed from third parties; risks associated with HP s international operations; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers, clients and partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the results of the restructuring plans, including estimates and assumptions related to the cost (including any possible disruption of HP s business) and the anticipated benefits of the restructuring plans; the resolution of pending investigations, claims and disputes; and other risks that are described in HP s Annual Report on Form 10-K for the fiscal year ended October 31, 2016, HP s Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2017 and HP s other filings with the Securities and Exchange Commission. The financial information set forth or discussed in this presentation, including any tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be reasonable, these amounts could differ materially from amounts ultimately reported in HP s filings with the Securities and Exchange Commission. HP assumes no obligation and does not intend to update these forward-looking statements. HP s Investor Relations website at contains a significant amount of information about HP, including financial and other information for investors. HP encourages investors to visit its website from time to time, as information is updated and new information is posted 2 Copyright 2017 HP Development Company, L.P.

3 Momentum HP Consumer PCs Kevin Frost, VP & GM Consumer Personal Systems March 22, Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice.

4 Confident and optimistic Delivering against commitments Large and growing TAM Clear and consistent strategy Consumer Transformation Strong execution and building business momentum $333B +3% 1 Scaling across core, growth and future Reinvention of both PC and portfolio 1 August 2016 IDC forecast as presented at HP s Securities Analyst Meeting Copyright 2016 HP Development Company, L.P. The information contained herein is subject to change without notice.

5 Consumer Personal Systems Strategy Reinvent the way people communicate, play, and live Reinvent PC Transform Portfolio Our market spaces Core Growth Future Best price-feature-value Most innovative Disruptive innovation Our strategic priorities OPP Pavilion ENVY Premium /2:1s Displays & Accessories Services Virtual Reality Cloud Computing Our foundation Industry-leading scale / quality / E2E cost structure World-class Customer Experience, Go-To-Market and Marketing Creating our unique PS culture = powerful creativity + a hard-drive for results 5 Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice.

6 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Excellence in operational execution Gaining share Improving product quality Increasing business margin Shifting mix to higher value segments Consumer share 1 (%) +1.8pts Analyzed Intervention Rate 2 (%) (1Q14-1Q17) Margin Rate 3 (indexed) Premium/Gaming Mix 4 (%) Down - 37% Up 2.5x FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 1 IDC PC Tracker CQ416 2 HP internal data; 3 HP internal Finance; 4 HP internal data 6 Copyright 2016 HP Development Company, L.P. The information contained herein is subject to change without notice.

7 Product leadership HP SPECTRE x360 HP OMEN 15 7 Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice.

8 Virtuous cycle of growth Premium Gaming Services CORE PC BUSINESS Displays & Accessories 2:1s 8 Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice.

9 Consumer Summary: Confident about our execution, optimistic about our future Large market opportunity Consistent strategy World class execution Breakthrough innovation Leading go-to-market $333B +3% 1 Pockets of growth Core Growth Future Cost Quality Net Promoter Score World class design Sprinkles of magic Insights-driven Global brand Inspired marketing Unparalleled GTM Transforming Consumer Personal Systems 1 August 2016 IDC forecast as presented at HP s Securities Analyst Meeting 9 Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice.

10 HP Commercial PCs Alex Cho VP & General Manager, Commercial PCs Copyright 2017 HP Development Company, L.P.

11 Commercial PC FY17 Strategy Reinvent the Office, Classroom & Healthcare Reinvent PC Transform Portfolio Our market spaces Core Growth Future Best price-feature-value Most innovative Disruptive innovation Our strategic priorities Multi-Device Experience Leading E2E Cost Structure New Form Factors Higher value mix & attach Security & Manageability Commercial mobility Device as a Service (DaaS) Office of the Future Classroom/Healthcare of the Future Augmented and Virtual Reality Our foundation Services and solutions Industry-leading scale / supply and quality World-class supply chain, go-to-market and marketing Creating our unique PS culture = powerful creativity + a hard-drive for Results Copyright 2017 HP Development Company, L.P.

12 Excellence in operational execution We are gaining share Shifting mix to higher value segments Increasing attach Focusing on the customer experience Commercial share 1 Premium Mix 2 Displays Attach 3 Net Promoter Score pts Core Premium +6pts y/y 2017Q1 2016Q1 2015Q Q4 2015Q1 1 IDC PC Tracker CQ416 2 HP internal data + directional targets; 3 HP internal Finance; 4 HP internal data 12 Copyright 2017 HP Development Company, L.P.

13 Unleashing unprecedented innovation Core PC Chrome Premium Verticals Mobility Elite Slice Chromebook 11 HP Elitebook x360 Education Elite x2 EliteBook with privacy screen Chromebook 13 HP EliteBook Folio Healthcare Elite x3 Copyright 2017 HP Development Company, L.P.

14 WORKFORCE 50% of workforce in 2020 will be Millennials 1 81% of next gen workers say state of art technology is important at work 2 WORKSPACE Open but more Vulnerable 200% rise in breaches due to targeting end point devices 3 WORK STYLES 40% of time spent Collaborating 1 62% of employees work from more than one location 1 High-Performing, Stylish Secure, Manageable Intuitive, Simple to use 1 HP proprietary research, Adobe, 2016, Future of Work; 3 Verizon, 2016 Data Breach Investigations Report, Copyright 2017 HP Development Company, L.P.

15 S T Y L I S H I N N O V A T I V E D U R A B L E DESIGN C O M P L E M E N T S Y O U R P R O F E S S I O N A L S T Y L E Elitebook X360 Elite Display S340c Elite Slice EliteOne 800 ZBook Studio G4 Copyright 2017 HP Development Company, L.P.

16 T h e w o r l d s m o s t s e c u r e a n d m a n a g e a b l e P C s 1 SECURITY HP Sure Start Gen3 BIOS Protection HP Multi-Factor Authenticate for identity HP Manageability Integration Kit HP Sure View Integrated Privacy Screen HP WorkWise mobile security solution HP sure view As simple as pressing F2 1 Based on HP s unique and comprehensive security capabilities at no additional cost and HP Manageability Integration Kit s management of every aspect of a PC including hardware, BIOS and software management using Microsoft System Center Configuration Manager among vendors with >1M unit annual sales as of November 2016 on HP Elite PCs with 7th Gen Intel Core Processors, Intel integrated graphics, and Intel WLAN. 9 of 10 visual hacking attempts successful Ponemon Institute, 2016 Cost of Data Breach Study Analysis Copyright 2017 HP Development Company, L.P.

17 A U D I O CO- C R E A T E K E Y B O A R D Outstanding Inking Experience with Full size Digital Pen* COLLABORATION W I T H A N N O T A T E & I N K BE H E A R D Mute/Unmute Microphone Share Screen new! Answer Call End Call Dedicated Collaboration Keys M A N A G E C A L L S 40% of professionals time spent in conference calls 1 Certified for Sky pe for Business First & Only Commercial PCs w/bi-directional Noise Cancellation 1 HP proprietary research, Copyright 2017 HP Development Company, L.P.

18 Office of the future Driven by changes in what and where people are working As-a-Service for predictable TCO Agile workspaces for individual productivity More Informal meeting areas for co-creation, and collaboration Integrated communal spaces for socialization, play, wellness Interactive conference rooms for meetings, and collaboration Modern embedded security Work outside the traditional office increasing Traditional office Home Emerging office Café/Public Space Airplane 18 Copyright 2017 HP Development Company, L.P.

19 HP is leading a TRANSFORMATION of Commercial Computing from to Workflow transformation PC Centric Device as a Service (multi-platform / multi-os) Industry leading security 19 End-user optimized devices, new form factors, and workspace categories Copyright 2017 HP Development Company, L.P.

20 20 Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice.