Printing and Personal Systems

Transcription

1 Printing and Personal Systems Dion Weisler Executive Vice President Printing and Personal Systems

2 Three waves Printing and Personal Systems 3

3 Three waves Printing and Personal Systems Wave one Capitalize PCs & printing Multi-OS / architecture Detachables / hybrids Solutions 4

4 Three waves Printing and Personal Systems Wave one Capitalize PCs & printing Multi-OS / architecture Detachables / hybrids Solutions Wave two Anticipate Internet of things Digital packaging Services New ecosystems 3D printing 5

5 Three waves Printing and Personal Systems Wave one Capitalize PCs & printing Multi-OS / architecture Wave two Anticipate Internet of things 3D printing Digital packaging Wave three Create New categories New ways to use technology Detachables / hybrids Solutions Services New ecosystems 6

6 Three waves Printing and Personal Systems Wave one Capitalize Wave two Anticipate Investment Wave three Create Segmentation Execution 7

7 Ink in 2009 A case study Wave one Capitalize Introduced first ink-in-the-office product Wave two Anticipate Recognized SMB and emerging-market need for lower cost Wave three Create Began investments: - Page-wide array - Ink chemistry 8

8 Ink in 2013 A case study Business ink market growing 9% 1 TAM expected to reach $10 billion by 2016 OfficeJet Pro expected to achieve double-digit unit growth Ink-in-the-Office represents ~1/3 of HP s ink sales 1. Expected market revenue CAGR for '13 - '16 Source: HP internal analysis 9

9 Personal Systems Copyright Hewlett-Packard 2013 Hewlett-Packard Development Development Company, L.P. Company, The information L.P. The information contained herein contained is subject herein to is change subject without to change notice. without notice.

10 Personal Systems accomplishments #1 Commercial player New partners in China +3pts. Outgrew PC market 1 #1 In India pts. Quality improvement 2 Operating systems CQ2'13 IDC PC Tracker (units) 2. HP internal analysis of Q3 FY13 year-over-year improvement

11 Personal Systems market continues to evolve Market expected to reach $400B by 2016 with 3% CAGR PCs Tablets Hybrids Services Accessories $170B / -4% $112B / 10% HP SmartFriend Services All-in-One Commercial Tablets $15B / 4% $21B / 23% $12B / 65% $22B / 8% $46B / 12% Emerging markets 3% (HW, PCs + tablets) $43B / 12% 12 Source: HP internal analysis, Sept (does not include smartphones) All data: Market revenue in 2016 and market revenue CAGR from 13 16

12 Commercial personal systems Market expected to reach $160B and grow 2% 1 Core strength Market share 2 Profitability Outgrew the market 2 Competition 2 # pts. (CQ2 13) Patents 3 $ Channel partners +8 pts. (CQ2 13) Customer base (Y/Y unit growth) HP Lenovo Dell Acer Apple Synergies 5% 0% -2% -35% -2% 14K 150K #1 Pan-HP HP internal analysis: Market revenue in 2016 and market revenue CAGR from CQ2'13 IDC PC Tracker (units) 3. Number of pan-pps Patents in portfolio

13 Commercial personal systems Market expected to reach $160B and grow 2% Workstations Thin clients Notebooks Tablets Desktops #1 #1 #2 #4 #1 47% share 27% share 21% share 2% unit share 20% share First Ultrabook First all-in-one Lowest power VDI trend Elitebook 800 Self-healing BIOS Hardened OS & security Opportunity at entry-level 14 Sources: Market revenue in 2016 and market revenue CAGR from CY based on HP internal analysis; market share data: CQ2'13 IDC PC Trackers (units)

14 Opportunity Commercial desktop share Desktop unit mix for 1H13 1 HP share 1 1H13 units Market CAGR 2 Units Premium: >$1,000 Mainstream: $700-$1,000 9% 10% 12% 17% 23% -6% Value: $400-$699 38% 42% 30% 22% -11% -3% Entry: <$399 41% 31% 15% +4% Market HP Q'13 IDC PC Tracker units share 2. Market units CAGR % based on internal HP analysis

15 Consumer personal systems Market expected to reach $240B and grow 3% 1 Crossover Multi-OS Platforms Form factors First at home, then at work Windows Chrome Android Ubuntu Intel AMD Nvidia Rockchip Rove Split x2 Revolve Pipeline for commercial Industry firsts Chrome on Intel Detachable with Haswell Embedded LEAP Ecosystem HP Connected Smart Friend SMB IT in a Box Retail 160K Retail stores Market share (PCs) 2 # HP internal analysis; market revenue in 2016 and market revenue CAGR from CQ2'13 IDC PC Tracker (units)

16 Consumer personal systems Market expected to reach $240B and grow 3% 1 Form factors Tablets Multi-OS Services Bring your own device & SMB Targeted bursts HP SmartFriend Profitable Segmented 1. HP internal analysis; market revenue in 2016 and market revenue CAGR from

17 In summary Commercial is core strength Consumer is strategic to crossover from home to work Segmenting to attack the heat in the market Continuing operational excellence Driving strategy to capitalize, anticipate and create across all waves 18

18 Printing Copyright Hewlett-Packard 2013 Hewlett-Packard Development Development Company, L.P. Company, The information L.P. The information contained herein contained is subject herein to is change subject without to change notice. without notice.

19 Printing accomplishments #1 Market share 1 16 New multi-function printers Double-digit Growth in Ink-in-the-Office 2 15% Reduction in ink SKUs 30% Fewer nodes 2 pts. Enhanced profitability CQ2'13 IDC Hardcopy Tracker 2. Expected year-over-year revenue growth in FY13 3. Year-over-year operating margin improvement in Q1-Q3 FY13 All other data: HP internal analysis

20 Printing market presents opportunity Printing market expected to reach $260B by 2016 with a 3% CAGR Hardware Supplies Software & Services $60B / 0% $120B / 0% Laser MFPs Business Ink $50B / 3% $10B / 9% $56B / 11% Managed Print Services $45B / 11% Graphics $40B / 4% Emerging markets 4% or 2X the growth in developed markets 21 Source: HP internal analysis, Sept All data: Market revenue in 2016 and market revenue CAGR from 13 16

21 Extending HP leadership Hardware Laser MFPs Business Ink #1 Laser Inkjet #1 #1 Supplies (ink & toner) Managed Print Services Graphics #1 #3 #1 Sources: Hardware, Laser MFPs, and Graphics - IDC Hardcopy Tracker CQ2'13; Business Ink and Supplies - HP Internal analysis; Managed Print Services - IDC WW Managed Print Services (doc #241884) June

22 Driving innovation Stephen Nigro Senior Vice President Inkjet and Printing Solutions Copyright Hewlett-Packard 2013 Hewlett-Packard Development Development Company, L.P. Company, The information L.P. The information contained herein contained is subject herein to is change subject without to change notice. without notice.

23 HP targeted print growth Innovation Growth markets Multi-Function Printers (MFP) Ink-in-the-Office (IITO) Indigo New business models Ink Advantage Instant Ink Managed Print Services (MPS) eprint New Style of IT Cloud, Mobility & Security Solutions Cost savings Quality 25

24 Growing LaserJet MFP share Growth market Expanded portfolio of MFPs; launched 16 new MFPs #1 in MFP share (+1.5 pts. share gain Y/Y) 1 HW unit growth of 34% Y/Y 1 Outgrew the market for last 5 consecutive quarters Expect to continue the momentum New NFC-enabled HP flow MFPs Simple and secured mobile printing with wireless direct and Touch-to-Print Extending flow capabilities into department MFPs IDC Worldwide Quarterly HCP Tracker, August 2013; and HP internal data CQ2'13

25 Accelerating business ink momentum Expecting double-digit growth in IITO revenue in FY13 and FY14; represents roughly 1/3 of ink sales The HP Officejet Pro X576dw will be not only a viable replacement, but in many cases a better choice, than laser models in environments with up to 10 users and monthly volumes up to 5,000 pages. - Buyers Lab Inc. 1 OJ Pro units expected to grow double-digits in FY13 OJ Pro X expected to expand market share in FY INKJET vs. LASER. A BLI whitepaper, July 2013

26 Accelerating growth in graphics Indigo business growth driven by innovation Growth and market share Indigo has an installed base of over 6,000 presses, driving 19% CAGR in page growth since % Market share Digital press / CQ2'13 +6% points over CQ2'12 Innovation: Indigo packaging Both new packaging platforms being launched are based on the new Indigo platform launched this year Indigo May 2014 Intro into $3B flexible packaging market Indigo May 2014 Intro into $2B folding carton packaging market 28 Source: Market share and size based on HP estimates

27 Making ink more affordable with new ink models HP Ink Advantage Exceeding our connect rate, usage and after-market share objectives Expecting triple-digit year-over-year unit growth for FY13 Available in more than 130 countries HP ink usage connect rate is more than 2.3X that of comparable products 1 Estimated gross margin improvement of more than 30 ppts. on hardware (Combined hardware + supplies = 15 ppts. estimated gross margin improvement) HP internal analysis, usage connect rate data based on usage improvement

28 Instant Ink expansion addresses customer needs Customers save up to 50% 1 on original HP Ink, enjoy convenience of never running out of ink 2, and lower their carbon footprint for cartridge consumption by ~65% 3 ~93% customer retention rate 4 Nationwide rollout underway in Best Buy, Office Max, HP Shopping Improves system model with 100% supplies aftermarket share Monthly printing plans: Occasional Moderate Frequent $2.99 for 50 pages Up to 50 rollover pages $1 for 15 more pages $4.99 for 100 pages Up to 100 rollover pages $1 for 20 more pages $9.99 for 300 pages Up to 300 rollover pages $1 for 25 more pages hp.com Savings do not apply for Officejet Pro printers used in $2.99 plan. Savings are based on the HP Instant Ink service plan price for 12 months, using all pages in the plan without purchasing additional blocks of pages, compared to the estimated street price of Original HP standard-size in cartridges and published yield printing ISO/IEC pages, ISO pages are a mix of text and graphics, color and black, 8.5 x 11 pages that meet ISO testing guidelines. Actual savings may vary depending on the number of pages printed per month, print resolution, type and size of pages printed, plan, and printer platform. For more information on ISO standards, see hp.com/go/pageyield 2. Based on plan usage, internet connection to an eligible HP printer, valid credit/debit card, address, and delivery service in your geographic area 3. Source: "Summary of Data and Assumptions for Instant Ink Program Carbon Footprint Analysis" 2013 study performed by Four Elements Consulting. Analysis includes the CO2 equivalent associated with customer trips to purchase ink cartridges at a retail store versus delivering directly to a customer s house, and it includes recycling empty ink cartridges versus throwing them away 4. Instant Ink Pilot results as of Sept 1, 2013

29 Managed Print Services Capturing the growing MPS market Market dynamics Expect $45B TAM in 2016 Expect 11% revenue CAGR '13 - '16 Printer and copier convergence Contractual model expanding to solutions Strategic focus Strategic partner Automation and intelligence Global scale and flexibility Service delivery Advantage HP 23% MPS TCV growth 1 Partner-MPS growth = 4x market 2 Partnering for reach Global expansion Service Delivery Excellence 31 Source: HP internal analysis 1. Cumulative growth from H Results from 1H'13

30 Print solutions for the New Style of IT Mobility Cloud Security 37% of WW workforce mobile by /3 of wireless printers are receiving prints from mobile devices 2 Total U.S. mobile pages expected to grow 12.5% from CY12 CY M print-enabled tablets and smartphones 1 trillion pages to be digitized by eprint shows 69% '11 '13 CAGR 4 Flow CM $5.5M average cost per incident of corporation information theft 5 Simple and secured mobile printing for SMB/Enterprise Access Control Imaging and Printing Security Center IDC, Mobile Printing Landscape: Transition to Early Adopters, August, Pages and printers estimated 3. IDC Multi-client Study: Mobile Devices and Impact on Print and End-User Analysis and Print Volume Forecast, HP internal research 5. U.S. Cost of a Data Breach report, Ponemon Institute, 2012

31 33

32 Strong momentum to win Accelerating in print Applying three waves in personal systems Leveraging commercial strength Segmenting maniacally Creating market crossovers Innovating across the business Profitability 34

33 Thank you

34 36