The World s Imaging & Printing Leader

Transcription

1 The World s Imaging & Printing Leader Enrique Lores September 15, Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.

2 It s all about Supplies! Sizable TAM Industry leadership Disruptive innovation Operational excellence $230B+ $230B+ printing market, with pockets of growth Leadership position that can be leveraged to expand Technology, solutions and business models for better experiences Industry-leading cost, margins and quality 2 Copyright 2015 HP HP Development Company, Company, L.P. The L.P. information The information contained contained herein is subject herein to change is subject without to change notice. without notice.

3 Solid management in the face of significant headwinds Market declining and currency headwinds HP Inc. s actions Print hardware units 1, Y/Y % Examples -18% Focused innovation Portfolio simplifications Aggressive cost reductions % >$500M savings per year 3-9 CQ114 CQ215 Q315 vs. Q114 2 (1) LASER + INK; (2) FISCAL QUARTERS; (3) FY13 TO FY15 YTD SOURCE: IDC 15CQ2; HP FINANCIAL PLANNING & ANALYSIS 3 Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.

4 Enabled us to maintain leadership and profitability Sustaining share leadership Improving customer satisfaction Maintaining profitability despite revenue decline HP PRINTING CQ215 SHARE HP PRINTING NET PROMOTER SCORE CHANGE * (3Q15 VS. FY14) HP PRINTING FISCAL QTR FINANCIALS 43.2% +1.1 pts Y/Y 16% 9% Consumer Commercial 20 Operating Profit (%) Q114 Revenue Y/Y (%) Q SOURCE: IDC 15CQ2 SOURCE: HP INTERNAL CUSTOMER EXPERIENCE RESEARCH * 3Q15 is rolling past 4 quarters. We ask customers to rate how likely they would be to recommend HP based on their recent purchase experience on an 11-point scale, from (0) not at all likely to (10) extremely likely. We take the percentage of customers that gave a rating of 9 or 10 and subtract the percentage that gave a rating of 0-6 to obtain the net promoter score (NPS). SOURCE: HP INTERNAL (HP FINANCIAL PLANNING & ANALYSIS) OP = DISTRIBUTED VIEW 4 Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.

5 Printing leadership & scale Global leadership across the board InkJet Printer #1 46.6% Laser Printer #1 36.9% CQ215 Unit Share Large Format Design* #1 48.4% Large Format Production** #1 24.7% Large Format Industrial*** #1 44.9% Digital Press Label & Packaging + Production **** #1 54.2% HP Inc. ranks #1 or #2 in 48 of the top 50 countries (Ink+Laser) 57% 55% 54% 52% 52% 44% 43% 43% 40% 40% 38% BRA USA CAN IND MEX UK WW AUS FRA CHN GER CQ215 HP PRINT SHARE BY TOP 10 HP MARKETS HP CQ215 PRINT RANK SOURCE: IDC WORLDWIDE QUARTERLY HCPT AND LFP TRACKER (CQ215) 5 Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.

6 Printing is alive! CAGR Analog to digital MEDIA GRAPHICS % -0.5% 1.9% Analog Digital x Digital CAGR ( ) SERVICES & SOLUTIONS 3 4.4% Graphics TAM ($B, 2015) Transactional to Contractual BUSINESS 2 0.6% Contractual +3% CAGR HOME % Transactional Transactional vs. Contractual Mix (Based on ink and laser system TAM) -3% CAGR 6 (1) INCLUDES HW & SUPPLIES; (2) INCLUDES HW & SUPPLIES. INCLUDES LASERS, SCANNERS, AND BUSINESS INK; (3) INCLUDES SERVICES PORTION OF MANAGED PRINT SERVICES, HW SUPPORT, DOC PROCESS OUTSOURCING, DOC CONSULTING AND SCANNING; INCLUDES SOFTWARE WHICH INCLUDES FLEET MANAGEMENT, MOBILITY, OUTPUT MANAGEMENT, SECURITY, IMAGE/DATA CAPTURE SOFTWARE, WORKFLOW & BUSINESS PROCESS MANAGEMENT SUITES; INCLUDES PAY FOR PRINT; SOURCE: HP INTERNAL MARKET ANALYSIS & PLANNING (3Q15) Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.

7 Printing strategy to drive value Grow Supplies 7 Copyright 2015 HP HP Development Company, Company, L.P. The L.P. information The information contained contained herein is subject herein to change is subject without to change notice. without notice.

8 Printing strategy to drive value Grow Supplies Our market spaces Core Growth The Future Our strategic priorities Home: Reinvigorate Business: Grow Profitable Share Capture Copier Pages (A3) Drive Graphics Lead 3D Printing 8 Copyright 2015 HP HP Development Company, Company, L.P. The L.P. information The information contained contained herein is subject herein to change is subject without to change notice. without notice.

9 Printing strategy to drive value Grow Supplies Our market spaces Core Growth The Future Our strategic priorities Home: Reinvigorate Business: Grow Profitable Share Capture Copier Pages (A3) Drive Graphics Lead 3D Printing Our foundation Brand and GTM Coverage Leading Cost Structure and Quality Technology IP People and Know How 9 Copyright 2015 HP HP Development Company, Company, L.P. The L.P. information The information contained contained herein is subject herein to change is subject without to change notice. without notice.

10 PageWide is enabling expansion across the portfolio It s more than a printing revolution It s inspiring the next industrial revolution 11 Copyright 2015 HP HP Development Company, Company, L.P. The L.P. information The information contained contained herein is subject herein to change is subject without to change notice. without notice.

11 Printing strategy to drive value Grow Supplies Our market spaces Core Growth The Future Our strategic priorities Home: Reinvigorate Business: Grow Profitable Share Capture Copier Pages (A3) Drive Graphics Lead 3D Printing Our foundation Brand and GTM Coverage Leading Cost Structure and Quality Technology IP People and Know How 12 Copyright 2015 HP HP Development Company, Company, L.P. The L.P. information The information contained contained herein is subject herein to change is subject without to change notice. without notice.

12 Core: Reinvigorate the Home Delight customers Make printing easier Instant Ink Up to 50% savings Never run out Emerging markets Ink Advantage Flip the model More desirable products Attractive, simple Easy print from mobile 2 new Instant Ink enrollees every minute Double-digit Y/Y Ink Advantage supplies growth Better system economics throughout 13 Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.

13 Core: Grow profitable Business share Differentiate with security Grow Managed Print Services and Solutions Strengthen portfolio leadership Roll-out JetIntelligence Ramp Ink-in-the-Office/PageWide 14 Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.

14 Success in Ink in the Office: OfficeJet Pro X Share growth in the targeted segment 1 Compelling Value Proposition 49% 2X Speed ½ Cost OJ Pro X 33% 3% 17% Positive Momentum / Customer Reaction +17 pts share since launch 1 HP Laser 30% 32% Value to Shareholders Q113 Q215 Homegrown platform with HP Inc. supplies SOURCED FROM IDC WORLDWIDE QUARTERLY HCPT TRACKER (CQ215); (1) SMALL WORK TEAM A4 COLOR 16 Copyright 2015 HP HP Development Company, Company, L.P. The L.P. information The information contained contained herein is subject herein to change is subject without to change notice. without notice.

15 Growth: Capture copier pages (A3) Printers (A4) Copiers (A3) ~$55B TAM ~$55B TAM 1 1 Disruptive PageWide technology Industry-leading LaserJet Expansive finishing options ~40% 2 ~5% 2 Focused channel strategy Solutions (1) 2015 TAM INCLUDING BUSINESS LASER/INK HARDWARE & SUPPLIES; (2) LASER HARDWARE UNIT SHARE (CQ215) SOURCE: HP INTERNAL MAP (3Q15) 17 Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.

16 Growth: Drive graphics digital transformation in packaging $35B Enabling brands to better connect with and delight customers Analog 19 Share-a-Coke 2.0 Diet Coke Extraordinary Collection $13B Packaging TAM Digital 16 Bud Light 200,000 different cans Graphics TAM ($B, 2015) SOURCE: HP INTERNAL ANALYSIS SOURCED FROM IDC WORLDWIDE QUARTERLY HCPT TRACKER (CQ2 2015); USA TODAY 18 Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.

17 It s all about Supplies! Improve the Supplies trajectory Evolve the Core: Home and Business printing Transform and expand in Growth markets - A3 - Graphics, including Packaging Out-innovate & disrupt for the Future (3D) 19 Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice.