Dear Stockholders:

The end of fiscal 2016 concluded HP Inc.'s first year as an independently traded, Fortune 100 corporation, following the successful completion of the largest corporate separation in history.

We began our reinvention journey and made a commitment to you, our stockholders, that we would provide reliable returns and predictable cash flow, while also building a strong foundation for future growth. I'm proud to report that we delivered on our financial promises while solidifying our leadership in the global Personal Systems, Printing and 3D Printing categories.

Despite volatile macroeconomic conditions and the continuing challenges of maturing markets, we outperformed our competitors and the market as a whole, taking profitable share in both Printing and Personal Systems categories, proving that we can execute in both up and down markets. Our strategy and vision is disciplined and paying off.

During the course of the year, we created an entirely new line of business printers and announced the strategic acquisition of Samsung's printer business to strengthen our competitive position and accelerate disruption in the $55 billion A3 copier space. We reinvigorated our Graphics business and innovated in consumer printing and services. As network and device security intensified as a global concern, HP met the challenge with the world's most secure printers. We also introduced the world's most advanced, production ready 3D printers and are partnering with materials, technology, academic and manufacturing leaders to accelerate this emerging industry.

In Personal Systems, our product portfolio is the strongest it has been in decades, winning top awards and rave reviews for commercial and consumer devices alike. Our new line of premium devices, including one of the world's thinnest laptops, is creating a bold new perception of the company and taking share from the competition.

At the same time, we returned 72% of free cash flow to our stockholders through dividends and share repurchases and captured savings to reinvest into research and development. And we did all of this while winning international acclaim for corporate social responsibility and taking a leadership role in corporate diversity, inclusion, sustainability, and community involvement.

In short, we're focused every day, every week, and every quarter on reinventing for our customers, partners, stockholders, and employees. That intense focus will continue into fiscal 2017 and beyond, no matter what global economic, political, or industry challenges we encounter.

On behalf of the entire management team, thank you for the opportunity to honor this venerable brand by re-energizing HP's creative, entrepreneurial spirit. We accomplished a great deal in our first year of reinvention, but there is still much more to be done. I'm confident that our most exciting – and rewarding — years are still to come.


Dion J. Weisler