HP Reports Fiscal 2014 Results

Highlights
Net revenue

$112.3B

GAAP diluted net EPS

flat CC(2)

1%

$111.5B

$2.62

FY13

flat

$111.5 billion

FY14

Cash flow from operations

$3.56

13% $3.74
5%

$11.6B

FY13

FY14

FY13

$2.62

FY13

FY14

Non-GAAP(1) diluted net EPS

$2.62

$3.74

6%

$12.3B

FY14

$12.3 billion

Geography
Americas
44% of net revenue
3% y/y

EMEA
37% of net revenue
2% y/y

2% CC(2)

Asia Pacific
19% of net revenue
1% y/y

flat CC(2)

3% CC(2)

Non-US net revenue was

65% of total net revenue

Capital Allocation

$
Dividend payment

Stock repurchase

Operating company net cash(1)(3)

$1.2 billion

$2.7 billion

$5.9 billion

$0.6104 per share

approximately 86 million shares

$5.8 billion y/y

Asset Management
$
$

Cash conversion cycle

4 days

13 days y/y

Days receivables

44 days
5 days y/y

Days payable

67 days
11 days y/y

Days inventory

27 days
3 days y/y

1. All non-GAAP numbers have been adjusted to exclude certain items. A reconciliation of specific adjustments to GAAP results for the current and prior periods is available at www.hp.com/investor/home
2. Adjusted to eliminate the effects of currency
3. Operating company net cash is defined as total company net cash excluding the cash and debt associated with HP Financial Services

HP Reports Fiscal 2014 Results

Personal Systems
Revenue

$34.3 billion
7% y/y
7% CC(1)

Operating
profit

$1.3 billion
3.7% of revenue

Printing

Total
units

8% y/y

Notebooks
revenue

9% y/y
Units

3% y/y

Desktops
revenue

Units

Commercial
revenue

2% y/y

10% y/y

Consumer
revenue

3% y/y

$27.8 billion

Storage
revenue

5% y/y

Converged
Traditional

8% y/y
13% y/y

$4.0 billion

BCS revenue

22% y/y

Networking
revenue

4% y/y

TS revenue

4% y/y

14.4% of revenue

Total hardware
units

flat y/y

Operating
profit

Consumer
hardware units

1% y/y

Commercial
hardware units

3% y/y

18.2% of revenue

$ Revenue

$22.4 billion
7% y/y
7% CC(1)

Operating
profit

$803 million

ITO revenue

8% y/y

ABS revenue

5% y/y

3.6% of revenue

HP Financial Services

Software
$

4% y/y
3% CC(1)

Enterprise Services

ISS revenue

Operating
profit

5% y/y

$4.2 billion

flat y/y

Revenue
1% y/y
1% CC(1)

Supplies
revenue

$23.0 billion

10% y/y

Enterprise Group
$

Revenue

Revenue

$3.9 billion
2% y/y
2% CC(1)

Operating
profit

$872 million
22.2% of revenue

License
revenue

3% y/y

Revenue

$3.5 billion
4% y/y

Support
revenue

2% y/y

Services
revenue

1% y/y

Professional Services
SaaS

Operating
profit

$389 million

5% y/y
5% y/y

Financing
volume

15% y/y

Net
portfolio
assets

1% y/y

11.1% of revenue

Outlook
Non-GAAP diluted
Q1 FY15

$0.89

net EPS(2)

$0.93

GAAP diluted
FY15

net EPS(3)

$3.83

Q1 FY15 net EPS

$4.03

$0.72

$0.76

FY15 net EPS

$3.23

$3.43

The fiscal 2015 first quarter and full year outlooks do not include costs associated with the separation, which are expected to be non-GAAP adjustments beginning in Q1 2015
1.
2.
3.

Adjusted to eliminate the effects of currency

First quarter fiscal 2015 non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.17 per share, related primarily to amortization of intangible assets and restructuring charges
Full year fiscal 2015 non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.60 per share, related primarily to amortization of intangible assets and restructuring charges

2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.