Financial Data and Key Metrics Changes - Revenue grew 9% year-over-year to $17 billion, marking the highest quarterly revenue since separation [11][23] - Non-GAAP EPS increased 20% to $1.10, outpacing revenue growth [11][25] - Free cash flow reached $1.4 billion, with 127% of free cash flow returned to shareholders through share repurchases and dividends [11][32] Business Line Data and Key Metrics Changes - Personal Systems revenue increased 15% to over $12 billion, with strong growth in commercial PCs [13][26] - Print revenue declined 4% to $4.8 billion due to supply chain challenges, with hardware units down 28% [15][27] - Industrial graphics and 3D printing saw significant year-over-year revenue growth, with over 120 million Multi Jet Fusion parts printed [17] Market Data and Key Metrics Changes - In constant currency, Americas revenue declined 1%, EMEA increased 8%, and APJ increased 28% [23] - Consumer revenue in Print decreased 23%, while commercial revenue grew 9% [28] Company Strategy and Development Direction - The company aims to modernize its core, expand into valuable adjacencies, and build a growth-oriented portfolio [10] - Focus on sustainability and ESG goals is driving innovation and market differentiation [18][19] - The acquisition of Choose Packaging positions the company in the sustainable packaging industry [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating supply chain challenges and maintaining strong demand in Personal Systems [12][34] - The ongoing situation in Ukraine is expected to impact top and bottom lines, with a projected EPS headwind of $0.02 to $0.03 for Q2 [34] - The company raised its full-year outlook for FY 2022, anticipating continued strength in revenue and EPS growth [33][36] Other Important Information - The company is committed to a capital return strategy, expecting to repurchase at least $4 billion in shares for FY 2022 [20][32] - The cash conversion cycle improved to minus 33 days, indicating effective working capital management [32] Q&A Session Summary Question: Dynamics behind ASP growth in print and PCs - Management noted favorable pricing due to supply-demand imbalances and a mix shift from consumer to commercial driving ASP increases [39][40] Question: Free cash flow dynamics and inventory management - Free cash flow of $1.4 billion was reported, with confidence in maintaining guidance of at least $4.5 billion despite supply chain challenges [42] Question: PC growth outlook for the year - Market projections indicate strong demand for PCs, with expectations of a $200 billion larger market compared to pre-pandemic levels [46] Question: Supply chain and component allocation improvements - Progress in securing components for premium categories was highlighted, with expectations of continued challenges [49] Question: Printing supply chain and page volume assumptions - Shipments were impacted by supply availability, but the supplies business performed positively with no significant shipment limitations [52] Question: Clarification on backlog changes - Personal Systems backlog decreased due to improved supply chain conditions, while Print backlog increased due to ongoing component shortages [59] Question: Price increases in printing and market reaction - Price increases for supplies did not negatively impact market share, indicating strong demand despite higher prices [83]

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 ...