Post on 13-Jul-2020
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
Personal Systems – Positioned for Growth Ron Coughlin September 15,2015
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice. 1
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
Sizable TAM and opportunity
to grow
$340B+ market, with growth segments
Sizeable TAM market, operational leadership and disruptive innovation
Strong Share Momentum
Driven by breakthrough innovation, world class cost structure, & leading go-to-market
Clear Strategy to Expand
Leverage scale to drive share growth, expand into profitable adjacencies, and create new categories
Leading Operational
Execution
Over $1B of cost savings in last year and a negative cash conversion cycle
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice. 2
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
$340B+ Personal Systems TAM growing at 4%
3
CONSUMER DETACHABLES
DISPLAYS & ACCESSORIES
PC CLIENTS
COMMERCIAL MOBILITY DEVICES
COMMERCIAL PC & MOBILITY SERVICES
THIN CLIENT & RPOS
74
45
36 9
2014
347
200
4
66
45
24 9
+4%
2018
387
168
6
97
51
53
12
2017
372
170
5
88
49
49
11
2016
358
171
5
80
47
44 10
2015
345
176
5
‘15-’18 CAGR
New PC form factors, mobility, and adjacencies are key growth drivers
10% 14% 4%
9%
-2%
9%
PC CLIENT SOURCE: IDC WORLDWIDE QUARTERLY PC FORECAST (AUGUST 2015) NON-PC CLIENT SOURCE: HP INTERNAL MARKET ANALYSIS & PLANNING (3Q15) MOBILITY SERVICES TAM BASED ON HP PRIMARY RESEARCH (2H15) RPOS = RETAIL POINT OF SALE
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice. 4
A best seller available at Best Buy HP 25vx 25” LED HD Monitor
Oscar winning HP DreamColor Displays HP DreamColor LP2480zx Professional Display
HP 25vx HP DreamColor LP2480ZX
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
$340B+ Personal Systems TAM growing at 4%
5
CONSUMER DETACHABLES
DISPLAYS & ACCESSORIES
PC CLIENTS
COMMERCIAL MOBILITY DEVICES
COMMERCIAL PC & MOBILITY SERVICES
THIN CLIENT & RPOS
74
45
36 9
2014
347
200
4
66
45
24 9
+4%
2018
387
168
6
97
51
53
12
2017
372
170
5
88
49
49
11
2016
358
171
5
80
47
44 10
2015
345
176
5
‘15-’18 CAGR
New PC form factors, mobility, and adjacencies are key growth drivers
10% 14% 4%
9%
-2%
9%
PC CLIENT SOURCE: IDC WORLDWIDE QUARTERLY PC FORECAST (AUGUST 2015) NON-PC CLIENT SOURCE: HP INTERNAL MARKET ANALYSIS & PLANNING (3Q15) MOBILITY SERVICES TAM BASED ON HP PRIMARY RESEARCH (2H15) RPOS = RETAIL POINT OF SALE
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
CY15 CY16
PC market declines expected to moderate in second half 2016
2014 2015 2016
Windows XP migration NA
Currency driven pricing
Windows 8 NA Windows 10
launch Core Processor
Architecture Transition
New Form Factors
PC market Y/Y trends Factors shaping market trajectory
CY14
SOURCE: IDC WORLDWIDE QUARTERLY PC FORECAST (AUGUST 2015) 6
-15%
-10%
-5%
0%
5%
FORECAST
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
Clear opportunities for growth
SOURCE: INTEL, 2015
Windows 10, Skylake, and new form factors to catalyze growth
Aged installed base drives replacement opportunity
7
INSTALLED BASE OLDER THAN 4 YRS (UNITS)
589M
• 7 © Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
Clear opportunities for growth
SOURCE: IDC WORLDWIDE QUARTERLY PC TRACKER, 2Q15 SOURCE: INTEL, 2015
AGGREGATE PC CLIENT VENDOR MIX (UNITS, %)
Average Y/Y share gain +1.9% pts Y/Y last 3 quarters
2011 2012 2013 2014 2015 2Q15 UNITS/ SHR
13.6M 21%
11.5M 18%
40.2M 61%
OTHERS
ACER, ASUS, TOSHIBA, FUJITSU
HP, LENOVO, DELL, APPLE
Further market concentration
8 • 8 © Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
Clear opportunities for growth
SOURCE: IDC WORLDWIDE QUARTERLY PC TRACKER, 2Q15 SOURCE: INTEL, 2015
NEW CATEGORIES = HOME AUTOMATION, DAAS, WEARABLES, IMMERSIVE COMPUTING
SOURCE: HP INTERNAL, MAP ( (2Q15)
PERSONAL SYSTEM GROWTH CATEGORIES (TAM, $B)
HP Inc. Comm. Services & Mobility YTD Revenue growth +21% Y/Y
PC & MOBILITY SERVICES
COMMERCIAL MOBILITY
WORKSTATION, THIN CLIENT
NEW CATEGORIES
Adjacencies & new categories
$10
$138
2018
$51
$53
$23
2014
$92
$45
$24 $9
$14
11% CAGR
9
HP, LENOVO, DELL, APPLE
• 9 © Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
Clear opportunities for growth
SOURCE: IDC WORLDWIDE QUARTERLY PC TRACKER, 2Q15 SOURCE: INTEL, 2015
NEW CATEGORIES = HOME AUTOMATION, DAAS, WEARABLES, IMMERSIVE COMPUTING
SOURCE: HP INTERNAL, MAP ( (2Q15)
HP, LENOVO, DELL, APPLE
SOURCE: HP INTERNAL
Targeted share growth plans underway
Under penetrated segments
GEOGRAPHIES
PRODUCT SEGMENTS
ATTACH
Target markets with below average share
Focus on Premium and Detachables
Accelerate Accessories & Displays
10 • 10 © Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
PC & MOBILITY SERVICES
COMMERCIAL MOBILITY
WORKSTATION, THIN CLIENT
NEW CATEGORIES
$10
$138
2018
$51
$53
$23
2014
$92
$45
$24 $9
$14
11% CAGR
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
Relentless focus on taking cost out, quality and customer satisfaction Solid execution in the face of significant headwinds
FY15 COMMERCIAL PC SHARE CHANGE
Growing share in a tough market
SOURCE: IDC WORLDWIDE QUARTERLY PC TRACKER, Q2 2015 TIMEFRAME COVERS CQ4’14 THROUGH CQ2’15
11
+2.1 pts
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
Relentless focus on taking cost out, quality and customer satisfaction Solid execution in the face of significant headwinds
SOURCE: HP INTERNAL COMPONENT REDUCTION = NOTEBOOK ONLY CONSUMER AND COMMERCIAL INCLUDED
• Warranty, logistics, overhead cost reductions
• Relentless focus on Price-Feature-Value
• Complexity reduction
Reducing costs
SOURCE: IDC WORLDWIDE QUARTERLY PC TRACKER, Q2 2015 TIMEFRAME COVERS CQ4’14 THROUGH CQ2’15
FY15 Y/Y PLATFORM REDUCTION
FY15 Y/Y COMPONENT REDUCTION
-23% -18%
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Relentless focus on taking cost out, quality and customer satisfaction Solid execution in the face of significant headwinds
SOURCE:HP INTERNAL (HP FINANCIAL PLANNING & ANALYSIS) SOURCE: HP INTERNAL COMPONENT REDUCTION = NOTEBOOK ONLY CONSUMER AND COMMERCIAL INCLUDED
PS OPERATING PROFIT %
14Q1 15Q1 15Q3
3.3% 3.5%
4.0% 4.0% 3.7%
3.0% 3.0%
Relatively consistent profitability
SOURCE: IDC WORLDWIDE QUARTERLY PC TRACKER, Q2 2015 TIMEFRAME COVERS CQ4’14 THROUGH CQ2’15
13
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Relentless focus on taking cost out, quality and customer satisfaction Solid execution in the face of significant headwinds
SOURCE:HP INTERNAL (HP FINANCIAL PLANNING & ANALYSIS) SOURCE: HP INTERNAL COMPONENT REDUCTION = NOTEBOOK ONLY CONSUMER AND COMMERCIAL INCLUDED
* We ask customers to rate how likely they would be to recommend HP based on their recent purchase experience on an 11-point scale, from (0) not at all likely to (10) extremely likely. We take the percentage of customers that gave a rating of 9 or 10 and subtract the percentage that gave a rating of 0-6 to obtain the net promoter score (NPS).
NET PROMOTER SCORE % CHANGE (3Q15 VS FY14)
+23% +12%
Consumer Commercial
Improving customer satisfaction
SOURCE: IDC WORLDWIDE QUARTERLY PC TRACKER, Q2 2015 TIMEFRAME COVERS CQ4’14 THROUGH CQ2’15
14
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
SOURCE: : IDC WORLDWIDE QUARTERLY PC, ENTERPRISE CLIENT DEVICE AND WORKSTATION TRACKERS (CQ215). BUSINESS DESKTOP AND NOTEBOOK SHARE INCLUDES WORKSTATIONS, EXCLUDES ENTERPRISE CLIENT DEVICE
Personal Systems PC client leadership & scale
Global share leadership in major personal computing categories
Commercial Desktop
CQ215 Category Share
#1 20.7%
Commercial Notebook
#1 25.0%
Workstation
#1 42.0%
Thin Client
#1 27.9%
Consumer PC Client
#2 14.5%
HP Inc.’s Commercial PC Client Rank – CQ215
#1| #2 3+
HP Inc.’s Commercial PCs rank #1 or #2 in 44 of the top 50 countries
23% 28%
USA WW
7%
21% 24%
CAN DEU
19%
JPN CHN UK
27%
IND
34%
FRA ITA AUS
33% 31% 28%
CQ215 HP Inc.’s Commercial PC client share by top 10 markets (%)
HP ships 1.7 PCs every second
SOURCE: HP INTERNAL FINANCIAL UNITS FISCAL 4Q14-3Q15, PC CLIENTS, EXCLUDES WORKSTATIONS AND THIN CLIENTS
15
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
Leading edge products launched 1H15 – driving share gains
Curved display
Spectre x360
Elitebook 1020
“The HP Spectre x360 is the best HP laptop ever and a top pick for any business user” - Inc. Mag
FIRST 34” CURVED DISPLAY
“World’s thinnest lightest business-class notebook”
“HP's New Displays Push Curves, VR And A 5K Priced So Low You MUST Read This Story” - PCWorld
“HP’s ZBook 14 G2 and 15u G2 pack power for productivity” – Digital Trends
ElitePad Healthcare Tablet
“The magic is the silver ions in the white frame, which can kill germs on contact.” – betanews
ELITEBOOK THIN AND LIGHT CLAIM IS BASED ON BUSINESS CLASS NOTEBOOKS AS OF JANUARY 9, 2015 WITH >1 MILLION UNIT ANNUAL SALES HAVING PRE-INSTALLED ENCRYPTION, AUTHENTICATION, MALWARE PROTECTION AND BIOS-LEVEL PROTECTION, PASSING MIL STD 810G TESTS, WITH OPTIONAL DOCKING INCORPORATING POWER DELIVERY.
Zbook Workstation Ultrabooks™
16
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
Breakthrough innovation across the portfolio
Core Growth The Future
HP ELITEBOOK 1020 SPROUT BY HP
18
HP SPECTRE X360
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
We will empower and transform how customers work and play Personal systems strategy to drive profitable growth
19
World Class Supply Chain, Go-to-Market & Marketing Our foundation
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
We will empower and transform how customers work and play Personal systems strategy to drive profitable growth
Core Growth The Future
Best Price-Feature Value Most Innovative Disruptive Innovation
Leverage scale advantages to drive share World class E2E cost & quality Leading innovation Targeted country & segment growth
2 in 1s & Premium Commercial Mobility PC & Mobility Services
Immersive Computing Office, School and Home of the future
20
Our strategic priorities
Our market spaces
World Class Supply Chain, Go-to-Market & Marketing Our foundation
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
Y/Y SHR CHG +1.3% +1.2% +1.3% +2.9% +2.2% +1.0%
Winning in Core Play to win in Commercial, and play where attractive in Consumer
HP ELITEBOOK 1020
Growth actions • Industry leading Price-Feature-Value • Maniacal focus on end-to-end cost reduction • Leverage ecosystem partnerships • Innovation focused on sprinkles of magic
SOURCE: IDC WORLDWIDE QUARTERLY PC TRACKER (Q2 2015)
21
21.6%
22.0%
22.8% 22.7%
CQ114
20.9%
CQ215
23.0%
Commercial PC Client Share (%)
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
HP CHROMEBOOK 11 HP STREAM
HP ELITEBOOK 840 #1 HP COMMERCIAL NOTEBOOK
HP ELITEDESK 700 MINI
22
HP ZBOOK WORKSTATION ULTRABOOKS
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
Growth – new form factors & premium
Growth actions • Leading product & marketing innovation in 2-in-1s • Security and serviceability in Commercial hybrids • Premium growth through design & curated experience
SOURCE: THE NPD GROUP / RETAIL TRACKING SERVICE, NOTEBOOK COMPUTERS, JAN 2014-JUNE 2015
+16
CQ215 CQ114
27.7%
11.9%
CQ114
9.8%
CQ215
+3 13.2%
HP US Convertible Quarterly share trend (%)
HP US Premium Notebook >$999 Quarterly share trend (%)
23
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
Immersive Computing – the on-ramp for Blended Reality
Growth and The Future to drive long term growth
24
SOURCE: HP INTERNAL (HP FINANCIAL PLANNING & ANALYSIS) *COMMERCIAL MOBILITY INCLUDES TABLET AND DETACHABLE ** HP SERVICEONE 2.0 PROGRAM LAUNCHED NOV 11, 2014
• Consumer launched in ‘15
• Commercial launching in ‘16
Healthcare Retail Field Service
Driving expansion in Commercial Services
Expanding the Commercial Mobility Solutions portfolio
20%+ growth in Commercial Services since 2013
40% growth in number of Service One partners since launch
Growth The Future
Commercial Mobility
Revenue Growth 3Q15 Y/Y
2X
Education
© Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.
HP positioned to win and capture growth opportunities
Powerful innovation Leading global brand
World class execution Inspired marketing Unparalleled go-to-
market coverage
• Product Life Cycle
management • Portfolio simplification • End to End cost structure • Account planning
discipline
19K+ RETAIL
PARTNERS
200K+ COMMERCIAL PARTNERS
26
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