HP Inc. (NYSE:HPQ) Q1 2022 Earnings Conference Call February 28, 2022 5:00 PM ET Company Participants Orit Keinan-Nahon - Head, Investor Relations Enrique Lores - President and Chief Executive Officer Marie Myers - Chief Financial Officer Conference Call Participants Shannon Cross - Cross Research Ananda Baruah - Loop Capital Jim Suva - Citi Toni Sacconaghi - Bernstein Amit Daryanani - Evercore Wamsi Mohan - Bank of America Erik Woodring - Morgan Stanley David Vogt - UBS Samik Chatterjee - JPMorgan Operator ...

Summary of HP Inc. Conference Call Company Overview - **Company**: HP Inc. (NYSE: HPQ) - **Industry**: Personal Systems (PCs, displays, accessories, and services) - **Business Size**: Approximately $40 billion [2] Key Points and Arguments Financial Performance - **Q4 Performance**: Personal systems revenue increased by 10% on a constant currency basis, with a significant price increase of 17% quarter-over-quarter [4][6] - **Market Dynamics**: The company is experiencing a structural increase in demand alongside supply constraints, affecting quarter-to-quarter comparisons [5][16] Demand and Supply Dynamics - **Hybrid Work Impact**: COVID-19 has accelerated the shift to hybrid work, which is expected to be a permanent change, requiring ongoing technology support [9][10] - **Investment in Home Setups**: 75% of companies are investing in improving home office setups, indicating a long-term shift in work environments [10] - **Education Sector**: The hybrid learning model has gained traction, with expectations for continued growth in educational technology [11] Market Outlook - **Total Addressable Market**: The market for personal systems is projected to grow to $560 billion, a 40% increase from pre-pandemic expectations [15] - **Supply Constraints**: The company anticipates supply constraints, particularly in integrated circuits (ICs), to persist into the second half of the year [16] Refresh Cycles and Consumer Behavior - **Faster Refresh Cycles**: The need for devices that support video conferencing and multitasking is driving faster refresh cycles, particularly in notebooks compared to desktops [18][19] - **Consumer vs. Commercial PCs**: There is a blending of consumer and commercial PC specifications, with commercial purchases expected to grow due to security and productivity needs [30][31] Margin and Pricing Strategy - **Margin Targets**: HP has raised its margin targets for the personal systems business to 5% to 7%, with expectations to operate at the high end of this range in 2022 [38][40] - **Pricing Management**: The company is focused on managing pricing and product mix to maintain margins despite supply chain challenges [44][45] Chromebook Segment - **Chromebook Positioning**: While Chromebooks are lower-margin products, they are considered essential in the education sector and are expected to remain a part of HP's portfolio [48][49] Backlog and Supply Chain Management - **Backlog Status**: HP currently has about a quarter's worth of backlog, primarily in the commercial segment, which is expected to decrease as supply improves [55] - **Supply Chain Strategy**: The company is enhancing direct relationships with suppliers and simplifying its portfolio to navigate supply constraints effectively [57][59] Peripheral and Services Growth - **Peripheral Strategy**: HP views peripherals as part of its experience strategy, with a focus on gaming and hybrid work solutions [66][67] - **Innovation in Audio/Video**: The company is integrating advanced audio and video technologies into its products to enhance remote work experiences [68] Additional Important Insights - **Consumer Behavior Trends**: There is a growing trend towards having multiple PCs per household, driven by the need for personal and professional devices [26][28] - **Market Penetration**: HP sees significant growth potential in emerging markets where PC penetration remains low [24] This summary encapsulates the key insights from the HP Inc. conference call, highlighting the company's strategic direction, market dynamics, and financial performance.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 31, 2020 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-4423 | --- | --- | |----------------------------------------------------------------|--------------------------------------| | | | | HP ...

Use these links to rapidly review the document Table of Contents Part I. Financial Information UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2020 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | |------------- ...