Smarter technology for all 2QFY22 Earnings Announcement Nov 4, 2021 2021 Lenovo Internal. All rights reserved. Forward Looking Statement This presentation contains "forward-looking statements" which are statements that refer to expectations and plans for the future and include, without limitation, statements regarding Lenovo's future results of operations, financial condition or business prospects as well as other statements based on projections, estimates and assumptions. In some cases, these statements ca ...

Financial Data and Key Metrics Changes - Group net income grew 65% year-on-year to US$512 million, with a net income margin improvement of 0.7 points [7][22] - Corporate revenue increased over 23% year-on-year to US$17.9 billion, and operating cash flow doubled year-on-year to US$1.6 billion [8][22] - Basic earnings per share rose to US$0.0442, representing a 71% growth year-on-year [23] Business Line Data and Key Metrics Changes - Solutions and Services Group (SSG) revenue grew 30% year-on-year to US$1.4 billion, with an operating margin of almost 21% [11][28] - Infrastructure Solutions Group (ISG) revenue reached an all-time high of nearly US$2 billion, up 34% year-on-year, with profitability improving significantly [13][33] - Intelligent Device Group (IDG) revenue increased by nearly 21% year-on-year, with commercial PC revenue growing 29% year-on-year [17][36] Market Data and Key Metrics Changes - Commercial demand for PCs grew 18% year-on-year, with SMB demand growing 48% year-on-year [16][62] - The global smartphone market is experiencing a reshuffle, providing Lenovo with growth opportunities, with smartphone revenue growing 27% year-on-year [18][38] - The IoT market is expected to surge by an 11% CAGR through 2025 [17] Company Strategy and Development Direction - Lenovo's strategy focuses on high-margin businesses and segments, aiming to double R&D investments over three years [9][43] - The company is leveraging its new IT technology architecture to capture market opportunities and drive digital transformation for customers [6][43] - Lenovo aims to become the largest and most trusted ICT infrastructure solution provider, with a focus on edge computing, hybrid cloud solutions, and 5G cloud-network convergence [15][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining profitability and growth, driven by strong execution of their strategy and market opportunities [5][20] - The company anticipates continued strong demand for PCs and infrastructure, with a focus on digital transformation and intelligent solutions [16][101] - Management acknowledged ongoing supply chain challenges but emphasized their ability to navigate these issues effectively [72][75] Other Important Information - R&D spending increased nearly 60% year-on-year, reflecting a commitment to innovation and differentiation [8][24] - The Board declared an interim dividend of HKD 0.08, representing a 21% increase from the previous fiscal year [23] Q&A Session Summary Question: Insights on PC business supply/demand and inventory - Management confirmed strong demand with significant backlog, particularly in commercial PCs, while consumer demand is mixed but remains above pre-COVID levels [58][62] Question: Future of commercial vs. consumer PC demand - Management is optimistic about both segments, expecting commercial growth to outpace consumer growth, which will remain above pre-COVID levels [71][72] Question: Update on IC shortage and gross margin outlook - The IC shortage remains a challenge, but management is confident in maintaining and potentially increasing gross margins through premium device sales and service penetration [72][74] Question: CDR withdrawal implications - Management clarified that the withdrawal of the CDR will not impact Lenovo's fundamentals or growth trajectory, as the company is already listed in Hong Kong [80][81] Question: Future net margin guidance - Management plans to double net margins over three years, driven by gross margin expansion and operational efficiency [90][92]

Financial Data and Key Metrics Changes - Group revenue reached US$15.6 billion, growing 48% year-on-year, marking the fastest growth in almost a decade [6][23] - Pre-tax income increased to US$380 million, and net income reached US$260 million, both around five to six times higher than last year [7][12] - For the fiscal year, group revenue surged to over US$60 billion, with a pre-tax income of almost US$1.8 billion and net income of nearly US$1.2 billion, both up more than 70% year-on-year [12][28] Business Line Data and Key Metrics Changes - Intelligent Devices Group (IDG) revenue was US$12.4 billion, up 46% year-on-year, with profitability at an all-time high of 6.7% [7][25] - Mobile Business Group (MBG) revenue grew 86% year-on-year, with pre-tax income reaching a record US$21 million since the Motorola acquisition [9][26] - Data Center Group (DCG) revenue grew 32% year-on-year to US$1.6 billion, with profitability improving significantly [10][27] - Software and Services revenue grew 44% year-on-year, contributing 8% of overall company revenue [13][39] Market Data and Key Metrics Changes - All geographies experienced high double-digit revenue growth, particularly in China, which grew 80% year-on-year [8][25] - Tablet volume grew 157% year-on-year, significantly outpacing the market [8] - The Cloud Service Provider segment achieved 73% year-on-year growth, indicating strong demand in the data center market [11][37] Company Strategy and Development Direction - The company is focusing on a Service-led transformation to capture growth opportunities in the post-pandemic environment [14][20] - Three key industry trends identified: consumption upgrade, infrastructure upgrade, and application upgrade [14][15][16] - The organizational structure has been aligned with the 3S strategy, focusing on Intelligent Device Group, Infrastructure Solutions Group, and Solutions and Services Group [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained strong demand for PCs and tablets, driven by behavioral changes during the pandemic [56][57] - The company anticipates continued growth in the education and corporate sectors, with significant investments in digitalization expected [64] - Management acknowledged ongoing challenges from chip shortages but emphasized confidence in their supply chain and manufacturing capabilities [53][58] Other Important Information - The company achieved a significant milestone by reducing greenhouse gas emissions by 92% over the past decade [20] - A final dividend of HKD0.24 per share was declared, reflecting a 10% increase compared to the previous fiscal year [31] Q&A Session Summary Question: Impact of chip shortage and future PC demand - Management indicated that the chip shortage is expected to persist for the next 12 to 18 months, but they do not foresee further deterioration [53][54] - They remain optimistic about strong PC demand, driven by a shift in consumer behavior and the need for device upgrades [56][57] Question: Education market penetration and corporate outlook - Strong demand for Chromebooks in the education sector is expected to continue, with corporate demand rebounding as companies transition from desktops to notebooks [61][64] Question: Future profitability of the Data Center Group - Management highlighted ongoing improvements in profitability driven by design wins and a focus on in-house manufacturing [66][68]

Smarter technology for all 4Q & FY20/21 Earnings Announcement May 27, 2021 2021 Lenovo Internal. All rights reserved. Forward Looking Statement This presentation contains "forward-looking statements" which are statements that refer to expectations and plans for the future and include, without limitation, statements regarding Lenovo's future results of operations, financial condition or business prospects as well as other statements based on projections, estimates and assumptions. In some cases, these statem ...

Smarter technology for all 3QFY20/21 Earnings Announcement Feb 3, 2021 nov 2020 Lenovo Internal. All rights reserved. Forward Looking Statement This presentation contains "forward-looking statements" which are statements that refer to expectations and plans for the future and include, without limitation, statements regarding Lenovo's future results of operations, financial condition or business prospects as well as other statements based on projections, estimates and assumptions. In some cases, these statem ...

Lenovo Group Limited (OTCPK:LNVGY) Q3 2021 Earnings Conference Call February 3, 2021 2:00 AM ET Company Participants Jenny Lai - VP of IR Yang Yuanqing - Chairman & CEO Wai Ming - Executive VP & CFO Gianfranco Lanci - Corporate President & COO Kirk Skaugen - Executive VP & President of the Data Center Group Conference Call Participants Sebastian Hou - CLS Howard Kao - Morgan Stanley Jenny Lai Good morning and good evening. Welcome to Lenovo's Earnings Webcast. Thanks to everyone for joining us. This is Jenn ...

Lenovo Group Limited (OTCPK:LNVGY) Q2 2021 Earnings Conference Call November 3, 2020 2:00 AM ET Company Participants Jenny Lai - VP of IR Yuanqing Yang - Chairman & CEO Wai Ming - Executive VP & CFO Gianfranco Lanci - Corporate President & COO Kirk Skaugen - Executive VP & President of the Data Center Group Conference Call Participants Howard Kao - Morgan Stanley Jerry Su - Crédit Suisse Sebastian Hou - CL Securities Nam Hyung Kim - Arete Research Jenny Lai Good morning and good evening. Welcome to Lenovo's ...

Smarter technology for all 2QFY20/21 Earnings Announcement Nov 3, 2020 – Hong Kong nov 2020 Lenovo Internal. All rights reserved. Forward Looking Statement This presentation contains "forward-looking statements" which are statements that refer to expectations and plans for the future and include, without limitation, statements regarding Lenovo's future results of operations, financial condition or business prospects as well as other statements based on projections, estimates and assumptions. In some cases, ...

2020 Lenovo Internal. All rights reserved. May 20, 2020 – Hong Kong FY19/20 Earnings Announcement Forward Looking Statement This presentation contains "forward-looking statements" which are statements that refer to expectations and plans for the future and include, without limitation, statements regarding Lenovo's future results of operations, financial condition or business prospects as well as other statements based on projections, estimates and assumptions. In some cases, these statements can be identifi ...

Lenovo Group Limited (OTCPK:LNVGY) Q4 2020 Earnings Conference Call May 19, 2020 10:00 PM ET Company Participants Jenny Lai - Vice President, Investor Relations Yang Yuanqing - Chairman and Chief Executive Officer Gianfranco Lanci - Corporate President and Chief Operating Officer Sergio Buniac - Senior Vice President and Co-President, Mobile Business Group, Chairman and President, Motorola Kirk Skaugen - Executive Vice President and President, Data Center Group Wong Wai Ming - Executive Vice President and C ...