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Message from our President and CEO

Delivering on our Reinvention

Dear Shareholders,

We will one day look back on 2020 as one of the most difficult years of our lifetimes. The Covid-19 pandemic has caused pain and suffering for so many, and we have seen stark reminders of the serious social and environmental challenges demanding our collective action.

Against this backdrop, I’m incredibly proud of the way our HP team stepped forward to meet the moment.

We showed remarkable agility and resilience – innovating to meet new customer needs and accelerating key elements of our strategy. We stayed true to HP’s values by mobilizing to support urgent needs in our communities. And we did it all while delivering strong full-year financial results.

For FY20, we grew non-GAAP EPS to $2.28 on revenue of $56.6 billion. And we returned $4.1 billion to our shareholders while continuing to invest in long-term growth opportunities.

Notably, we achieved the targets we set in the fall of 2019. Given the dynamic market conditions of the past year, that’s an impressive accomplishment reflecting the power of our broad and differentiated portfolio, the strength of our executional muscle, and the continued progress we’re making against our priorities.

Well Positioned for a Changing World

We see many attractive opportunities ahead to build on our success and drive long-term sustainable growth, fueled by trends that are reshaping the world around us.

For example, the pandemic has fundamentally changed the concept of work. As hybrid work becomes the norm, many offices will become collaboration spaces while a lot of traditional office work will be done remotely. This will drive the continued consumerization of corporate IT and a new wave of innovation – from more versatile and secure technology and peripherals, to services and software that enhance the user experience.

Our strategy is designed to capitalize on these shifts by modernizing Personal Systems and Print experiences and expanding into valuable adjacencies – and we made good progress throughout 2020. We launched a wide range of personal computing solutions tailored to the changing ways people live, work, learn and play. And we leveraged our strength across home and office printing to create new, cloud-enabled value propositions like HP+.

The pandemic has also fundamentally changed customer behavior. People increasingly want to consume as a service. Many have adopted a digital-first mentality. And they’re looking for seamless omnichannel experiences spanning their digital and physical worlds.

Here, too, we made major strides forward. We significantly grew our subscription business, with Instant Ink surpassing 8 million subscribers. And we implemented new systems that are making us more digitally enabled and data driven.

As we modernize our core, we also continue to build new businesses to drive long-term growth in areas like 3D printing and industrial graphics. We have a clear strategy to disrupt industries by creating highly personalized solutions and accelerating the adoption of digital printing. And the pandemic has shown the value of the innovation we’re able to deliver.

For example, together with our partners, we produced more than 5 million 3D-printed parts for hospitals using Multi Jet Fusion. That’s just a glimpse into what’s possible as we create customized end-to-end solutions for vertical markets and enable more flexible, resilient supply chains.

And moving forward, we’re focused on creating entirely new businesses by leveraging our vast intellectual property in microfluidics, which has many potential applications in areas beyond printing – such as health and wellness. Our newly formed Strategy & Incubation organization will lead this important work, with a focus on driving new sources of growth.

Over time, we will build a broader portfolio of businesses that drives near, medium and long-term value creation and meets a broader set of customer needs.

And to enable all this, we continue to drive an aggressive, multi-year transformation agenda focused on strengthening our digital capabilities and optimizing our cost structure. We implemented new systems and a new operating model in 2020, while exceeding our cost savings target for the year. And these remain priority focus areas moving forward.

Making a Sustainable Impact

But it’s not just what we’re doing that gives me confidence in HP’s future. It’s also how we’re doing it.

At a time when trust in institutions is lacking, our customers are looking for brands they can rely on to do the right things. That’s why Sustainable Impact remains at the heart of our strategy.

Our success will no longer be defined solely by the products we make, but also by the progress we make possible – from addressing systemic racism to protecting our planet for future generations. The HP brand will stand for a new era of opportunity where climate change is reversed, human rights are universally protected, and the digital divide eliminated for all.

In recent months, HP has been named “America’s Most Responsible Company” by Newsweek for the second straight year, one of the top 10 “Best Managed Companies of 2020” by the Wall Street Journal, and a member of the Barron’s list of “100 Most Sustainable Companies.”

HP has always been home to those who dream of creating a better future for everyone, everywhere – then work together to make it a reality. That’s the mindset that enabled us to deliver on our commitments last year, and it’s what will lift our business to new heights in the years to come.

Thank you for the confidence you have placed in HP with your investment.


Enrique Lores
President and CEO

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