Strong and Getting Stronger
We continue to advance our leadership in Personal Systems and Printing.
We are creating the next generation of personal computing experiences by innovating across hardware, peripherals, services, software and security to meet customer needs.
We are modernizing print experiences by creating new, cloud-enabled value propositions and accelerating service-led business models.
We continue to leverage our technology and intellectual property to disrupt industries.
We have begun this disruption in areas such as Graphics and 3D Printing, which together we refer to as our Industrial businesses that, collectively, present attractive long-term growth opportunities.
We are creating highly personalized, end-to-end solutions for specific industry verticals; accelerating the adoption of digital printing; and creating new businesses using HP microfluidics technology.
We continue to transform the way we work as a company to deliver on our priorities.
This includes a new global operating model that places our teams closer to customers, and new digital capabilities that enhance our effectiveness and optimize our cost structure.
We are implementing a multi-year transformation program that exceeded our cost savings target for 2020 and will maintain an aggressive focus on creating value.
Executing on our Strategy and Driving Financial Returns in Fiscal 2020
HP’s full year fiscal 2020 financial results reflect the strength of our innovation and execution and operation excellence as we make progress against creating multiple value creation engines across our company. Our results in fiscal 2020 also demonstrate our ability to deliver results while investing in our business for future growth and efficiency opportunities with an increased focus on returning capital to shareholders. Our foundation is strong, including our balance sheet, and we have multiple levers to create value for our stockholders. We are pleased with our full year results despite more challenging industry, macroeconomic and geopolitical dynamics.
We generated $4.3 billion in net cash provided by operating activities and $3.9 billion of free cash flow in fiscal 2020. Free cash flow includes net cash provided by operating activities, net investments for leases of $0.2 billion and net investments in property, plant and equipment of $0.6 billion. We utilized approximately $3.1 billion of cash during fiscal 2020 to repurchase approximately 166.5(1) million shares of common stock in the open market. When the value of these repurchases is combined with the almost $1.0 billion of cash used to pay dividends, HP returned 105% of its free cash flow to stockholders in fiscal 2020.
Represents share repurchases settled in fiscal 2020.
The HP of the Future
From the very early days of HP, this company has pushed past conventional notions of what’s possible. We have dreamed of creating a better future for everyone, everywhere – and then worked together to make that future a reality.
Today, as we innovate to meet the needs of the changing world around us, we enter a defining decade for our company. A decade full of opportunity to advance our leadership in Personal Systems and Print, to disrupt industries with our technology and IP, and to transform HP for the future.
And we will do it in ways that are aligned with our values – continuing to build one of the world’s most trusted brands; investing in our culture and talent so that HP remains a place where great leaders come to learn, lead and thrive; and making a sustainable impact on the markets and communities we serve.
All across our company, we are summoning the creativity, imagination and determination that has always defined HP at its best – because that’s ultimately what will lift our business to new heights in the years to come.