Personal Systems Group

Transcription

1 Personal Systems Group Todd Bradley Executive Vice President December 13, Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

2 Operating strategy Provide customers with superior products and overall experience Drive world-class cost structures and processes PSG 4-point strategy Leverage breadth of HP portfolio Drive the broadest customer reach

3 Progress report 20% WW Total PC client market share (1) Operating profit (2) (2) $800 FY01 FY02 FY03 FY04 FY05 8.0% 18% 16% $600 $1B operating profit turnaround since FY02 6.0% 14% $ % 12% 10% 8% 6% Dollars in millions $200 $0 ($200) 2.0% 0.0% (2.0%) OP % of Revenue 4% ($400) (4.0%) 2% ($600) (6.0%) 0% 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 ($800) Dell HP Lenovo/IBM Acer 1. IDC Worldwide Quarterly PC Tracker, Q Based on Combined Company data. See supplemental slides at for a description of periods used for combined company information. (8.0%)

4 PSG product portfolio HP ipaq Mobile Messenger HP Workstation with dual Opteron processors HP Pavilion Notebook with QuickPlay HP Compaq Notebook with adjustable stand HP Thin Client in Consolidated Client Infrastructure HP Media Center PC with LightScribe

5 Building on positions of strength Desktops Notebooks Workstations Handhelds FY05 profile 54% of revenue 2% growth Y/Y 37% of revenue 16% growth Y/Y 5% of revenue 26% growth Y/Y 3% of revenue 6% decline Y/Y Addressable market 1 136M units 5% CAGR to 07 65M units 19% CAGR to 07 2M units 7% CAGR to 07 65M units 33% CAGR to 07 PSG strengths Media Center PC Blade PCs/thin client Breadth of lineup Customer choice Product innovation Collaborative engineering Technology time to market Data-centric devices Enterprise relationships FY06 priorities Expand blade PC Extend digital entertainment Exploit market reach Wireless WAN Add new verticals Blade workstation solution Leverage partnerships Strengthen roadmap 1. IDC Q PC Tracker, IDC Q Worldwide Quarterly Workstation Forecast, IDC Worldwide Smart Handheld Device Forecast & Analysis,

6 Improving business fundamentals Revenue growth 4 6% Grow units at/or above market Lead shift to mobility Expand emerging country reach Exploit retail advantage Operating margin 3 4% Improve product mix and attach Reduce product and service costs Targeted SG&A investments Drive efficient overhead structure Return on assets >50% improvement Supply chain improvements Inventory turns Asset utilization

7 Always ready, always on mobile computing Mobile services & solutions Easy access to services Voice & data convergence Mobile security Mobile applications Capacity for rich digital media content New personalized services Infrastructure SW & Services Devices Mobile technology Security Management software Service development and delivery platforms Network service provider partners Go-to-market

8 Leading the shift to mobility Award-winning, broad product portfolio Innovation to improve the customer experience Enabling customers to buy the way they choose 20% 18% 16% 14% 12% 10% WW Notebook market share (1) 8% 6% 4% 2% 0% 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 Dell HP Lenovo/IBM Acer 1. IDC s Q Final Top 10 Vendor Rankings by Form Factor

9 Capitalizing on emerging markets Expanding to second and third tier cities Leveraging local retail and commercial channels Applying proven business models and processes 8% 7% 6% 5% 4% 3% 2% 1% 0% Dell HP Lenovo/IBM Acer Central and Eastern Europe market share 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 Source: IDC s Q Final PC Tracker 40% 35% 30% 25% 20% 15% 10% 5% 0% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% China market share 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 India market share 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05

10 Delivering best customer experience creates preference and loyalty First to market with differentiated solutions Industry-leading customer support Flexibility to choose product technology

11 Key success factors for PSG Capitalize on mobility and emerging markets Optimize direct and indirect Deliver innovation that matters Continue to improve customer satisfaction Maintain balance of profit and share

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