HP Inc. (NYSE:HPQ) Q3 2022 Results Conference Call August 30, 2022 5:30 PM ET Company Participants Orit Keinan-Nahon - Head, Investor Relations Enrique Lores - President & Chief Executive Officer Marie Myers - Chief Financial Officer Conference Call Participants Erik Woodring - Morgan Stanley Toni Sacconaghi - Bernstein Shannon Cross - Credit Suisse Sidney Ho - Deutsche Bank Wamsi Mohan - Bank of America Samik Chatterjee - JPMorgan Ananda Baruah - Loop Capital Jim Suva - Citigroup Operator Good day, everyon ...

Summary of HP Inc. Conference Call Company Overview - **Company**: HP Inc. (NYSE: HPQ) - **Date**: July 8, 2022 - **Participants**: Marie Myers (CFO), Ruplu Bhattacharya (BofA Securities) Key Industry Insights - **Market Dynamics**: HP operates in two large markets: Personal Systems (PS) and Print. The PS market is experiencing revenue growth year-on-year, despite a single-digit decline in units. The print market is expected to remain flat but grow in line with the market [4][6]. - **Geographic Performance**: The macro environment is impacting revenue differently across regions. The Asia business is affected by China, while the US and Europe are contributing more to top-line revenue. Consumer demand is slowing, particularly in Europe due to the Russia-Ukraine war, while commercial demand remains strong [7][9]. Financial Performance - **Earnings Announcement**: HP reported a strong earnings announcement with a beat and raise, despite a tough macro environment [4][5]. - **Cost Management**: The company is committed to a transformation plan aimed at reducing costs by approximately $1.2 billion, which is expected to roll out through the second half of the year [4][5][54]. - **Capital Return**: HP plans to return $5 billion to shareholders this year, with a total value plan of $16 billion [5][52]. Growth Areas - **Key Growth Vectors**: HP expects to generate over $10 billion in revenue from key growth areas, which include gaming, peripherals, Workforce Solutions, Consumer Solutions, and industrial sectors. These areas are projected to grow at a double-digit CAGR [4][14]. - **Acquisition Strategy**: The recent acquisition of Poly is expected to enhance HP's capabilities in hybrid work environments, particularly in peripherals and conference room solutions [14][47]. Margin and Pricing Strategy - **Margin Trends**: Margins in both PS and Print segments are trending towards the high end of long-term ranges. The company has seen a mix shift towards higher configurations, which is driving average selling prices (ASPs) up by 30% year-on-year [16][19]. - **Pricing Strategy**: HP has improved its pricing management capabilities, allowing for better global pricing strategies. The company has benefited from favorable pricing during the pandemic [19][22]. Supply Chain and Inventory Management - **Supply Chain Impact**: The company has faced supply chain challenges, particularly due to the Russia-Ukraine conflict and China lockdowns. However, HP has managed to navigate these challenges effectively [11][12]. - **Backlog Management**: HP has an elevated backlog in the Personal Systems segment, which is expected to normalize over time. The backlog is primarily commercial in nature, providing confidence in future revenue [31][32]. Future Outlook - **Recession Resilience**: HP believes it is more resilient to potential economic downturns compared to previous years, with a balanced contribution from PS and Print segments and a strong focus on cost management [29][30]. - **Free Cash Flow Guidance**: HP is confident in achieving at least $4.5 billion in free cash flow for fiscal 2022, supported by inventory management and expected volume growth in the PS segment [48][49]. Conclusion - HP Inc. is navigating a challenging macro environment with a strong focus on cost management, strategic growth areas, and effective pricing strategies. The company is well-positioned to leverage its strengths in both the Personal Systems and Print markets while adapting to changing consumer and commercial demands.

Summary of HP Inc. Conference Call Company Overview - **Company**: HP Inc. (NYSE: HPQ) - **Event**: Cowen 50th Annual Technology, Media & Telecom Conference - **Date**: June 2, 2022 - **Participants**: Enrique Lores (CEO), Krish Sankar (Cowen Analyst) Key Points Business Performance - HP demonstrated strong performance in a challenging environment, maintaining consistent results over multiple quarters [3] - Key growth businesses are expected to exceed $10 billion by year-end, with $5.6 billion achieved in the first half [3] - HP has an aggressive capital return plan, including $1 billion in share buybacks and nearly $300 million in dividends last quarter [3] Personal Systems Segment - Commercial PCs account for approximately 65% of HP's revenue, with better margins compared to consumer PCs [5] - The PC market is expected to see a slight decline in unit sales but revenue growth due to a shift towards premium products [6][8] - Revenue growth is projected between 1% to 3%, with opportunities in peripherals and services contributing to margin improvement [9] Peripheral Business and Acquisitions - HP's acquisition of Poly aims to enhance offerings in hybrid work environments, focusing on professional studio setups and video conferencing systems [11][12] - The gaming peripherals market is significant, with gamers spending three times more on peripherals than on PCs [11] Market Dynamics - Demand for commercial PCs remains strong, with consistent sellout rates higher than pre-pandemic levels [16] - The war in Ukraine has impacted consumer business in Europe, leading to a slowdown in demand [18] Pricing Strategy - Average selling prices have increased due to a mix shift towards premium units and rising costs [20] - HP has not had to discount products aggressively due to strong demand, which has positively impacted pricing [21] Printing Business - HP's print margins are currently above the target range of 16% to 18%, but a return to this range is expected as supply normalizes [24] - The hybrid work environment is projected to reduce office printing to about 80% of pre-pandemic levels [29] - Supply chain challenges are affecting print more than personal systems, particularly due to unique chip designs [26][27] Subscription Model and Customer Engagement - HP aims to increase adoption of the Instant Ink subscription model, currently at 20%-30%, with a goal of reaching 50%-60% [36] - The HP+ program rollout is progressing well, with a majority of customers opting for the HP+ solution [41] Future Outlook - HP anticipates continued demand in the commercial sector despite uncertainties such as inflation and geopolitical tensions [16] - The company is committed to returning at least $16 billion to shareholders by the end of 2022, with plans for aggressive buybacks [55] Transformation and Cost Management - HP has successfully executed its cost-saving transformation plan, raising its savings target from $1 billion to $1.2 billion [59] - The company continues to seek efficiencies through better digital tools and processes [59] Additional Insights - HP's strong free cash flow generation supports its capital return strategy, with $4 billion in buybacks planned for the year [54] - The company is focused on maintaining profitability in a competitive landscape, with expectations of industry consolidation in the printing sector over time [45]

Summary of HP Inc. Conference Call Company Overview - **Company**: HP Inc. (NYSE: HPQ) - **Event**: Bernstein 38th Annual Strategic Decisions Conference - **Date**: June 2, 2022 - **Participants**: Enrique Lores (CEO), Toni Sacconaghi (Bernstein Analyst) Key Highlights Financial Performance - HP delivered strong earnings, guiding EPS to the high end of the range, with a portfolio of five growth businesses expected to exceed $10 billion by year-end, achieving $5.6 billion in the first half [4][5] - The company plans to return approximately $1.3 billion to shareholders through dividends and share buybacks [5] Market Conditions - **Europe**: Notable consumer weakness observed, attributed to geopolitical tensions and energy crisis concerns, leading to increased consumer hesitancy [7] - **China**: Significant impact on sales due to strict lockdowns, affecting consumer purchasing capabilities [11] - **Backlog Management**: HP aims to reduce its backlog, which was nearly a quarter's worth of PC orders, targeting normalization by the end of the year or early next year [13] Demand Dynamics - **PC Demand**: Increased demand during the pandemic led to a shift from one PC per home to multiple PCs, with expectations of sustainable demand despite potential short-term declines [22][23] - **Printing Demand**: A decline in office printing due to remote work, with projections indicating office printing will be around 80% of pre-pandemic levels [56] Supply Chain Challenges - HP is facing component shortages impacting PC shipments, particularly due to yield issues with a key supplier [18] - The company has adapted its order management and supply chain processes to better handle the current environment [42][43] Pricing and Margins - HP experienced favorable pricing conditions due to demand exceeding supply, contributing to improved margins [26] - Future projections indicate a return to historical margin levels for printing, while PC margins are expected to remain elevated due to a focus on premium products and adjacent services [27][45] Strategic Initiatives - HP is focusing on expanding into higher-margin adjacencies such as peripherals and services to offset potential declines in PC pricing [45] - The acquisition of Poly is seen as a significant opportunity in the video conferencing market, with a large addressable market of meeting rooms [50] ESG Considerations - HP is committed to sustainability, with initiatives aimed at making printing forest positive and reducing paper usage [63] Capital Return Strategy - HP plans to return 100% of free cash flow to shareholders unless better investment opportunities arise [73] Additional Insights - The company is monitoring trends closely, especially in Europe, where CEO sentiment differs significantly from that in the U.S. [9] - HP's strategy emphasizes value creation over market share growth, focusing on profitability and premium product offerings [40] This summary encapsulates the key points discussed during the conference call, highlighting HP's financial performance, market conditions, strategic initiatives, and future outlook.

HP Inc. (NYSE:HPQ) Q2 2022 Earnings Conference Call May 31, 2022 5:00 PM ET Company Participants Orit Keinan-Nahon - Head, Investor Relations Enrique Lores - President & Chief Executive Officer Marie Myers - Chief Financial Officer Conference Call Participants Krish Sankar - Cowen and Company Aaron Rakers - Wells Fargo Amit Daryanani - Evercore Toni Sacconaghi - Bernstein Erik Woodring - Morgan Stanley Jim Suva - Citigroup Ananda Baruah - Loop Capital David Vogt - UBS Operator Good day, everyone, and welcom ...