Storytelling Recommendations Start with a message – Every storytelling exercise should begin by asking: Who is my audience and what do I want to share with them? Keep it simple – Not every story you tell has to be a surprising, edge-of-your-seat epic; some of the most successful and memorable stories are relatively simple and straightforward. The Story – This presentation is meant to be customized for each conversation. Add or remove slides from the core presentation or from the appendix to illustrate and annotate the story you want to share. Speaking bullets have been prepared, but the delivery of content should be conversational. Prepare – Effective storytelling requires preparation beforehand, but you should be able to adapt the story to the audience and situation at hand. • Customize the presentation content for each conversation • Determine which customer story videos and/or customer reference quotes to share • Determine which HP story videos to highlight Practice makes perfect – Storytelling is an “art form” that requires repeated effort to get right. • Consider your audience — choose an approach and details that will best resonate with your listeners • Identify the message your want to impart • Find inspiration from life experiences and share them Safe harbor This presentation contains forward-looking statements that involve risks, uncertainties and assumptions, relating to, among other things, the planned separation. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any statements of the plans, strategies and objectives of HP for future operations, including the separation transaction; the future performance of Hewlett-Packard Enterprise and HP Inc. if the separation is completed; the execution of restructuring plans and any resulting cost savings or revenue or profitability improvements; any projections of revenue, margins, expenses, HP’s effective tax rate, net earnings, net earnings per share, cash flows, benefit plan funding, share repurchases, currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring charges; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the need to address the many challenges facing HP’s businesses; the competitive pressures faced by HP’s businesses; risks associated with executing HP’s strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP’s products and services effectively; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; risks associated with HP’s international operations; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers and partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the execution, timing and results of the separation transaction or restructuring plans, including estimates and assumptions related to the cost and the anticipated benefits of implementing the separation transaction and restructuring plans; the resolution of pending investigations, claims and disputes; and other risks that are described in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2013, and HP’s other filings with the Securities and Exchange Commission, including HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2014. As in prior periods, the financial information set forth in this presentation, including tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be reasonable, these amounts could differ materially from actual reported amounts in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2014. HP assumes no obligation and does not intend to update these forward-looking statements. 2 Use of non-GAAP financial information To supplement HP’s historical and forecasted financial results presented on a GAAP basis, HP provides revenue on a constant currency basis, HP’s non-GAAP tax rate, nonGAAP diluted net earnings per share and free cash flow. Definitions of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included elsewhere in this presentation and available in the supplemental information provided at www.hp.com/investor/2014OctAnnouncement/. HP’s management uses revenue on a constant currency basis, HP’s non-GAAP tax rate and non-GAAP diluted net earnings per share to evaluate and forecast HP’s performance before gains, losses or other charges that are considered by HP’s management to be outside of HP’s core business segment operating results. Free cash flow is a liquidity measure that provides useful information to management about the amount of cash available for investment in HP’s businesses, funding strategic acquisitions, repurchasing stock and other purposes. These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of HP’s results as reported under GAAP. Items such as amortization of purchased intangible assets, though not directly affecting HP’s cash position, represent the loss in value of intangible assets over time. The expense associated with this loss in value is not included in non-GAAP diluted net earnings per share and HP’s non-GAAP tax rate and therefore does not reflect the full economic effect of the loss in value of those intangible assets. In addition, items such as restructuring charges that are excluded from nonGAAP diluted net earnings per share and HP’s non-GAAP tax rate can have a material impact on cash flows and earnings per share. Free cash flow does not represent the total increase or decrease in the cash balance for the period. The non-GAAP financial information that we provide also may differ from the non-GAAP information provided by other companies. We compensate for the limitations on our use of these non-GAAP financial measures by relying primarily on our GAAP financial statements and using non-GAAP financial measures only supplementally. We also provide robust and detailed reconciliations of each non-GAAP financial measure to the most directly comparable GAAP measure, and we encourage investors to review carefully those reconciliations. We believe that providing these non-GAAP financial measures in addition to the related GAAP measures provides investors with greater transparency to the information used by HP’s management in its financial and operational decision-making and allows investors to see HP’s results “through the eyes” of management. We further believe that providing this information better enables investors to understand HP’s operating performance and to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. 3 HP Strategy HP leadership team Meg Whitman Chairman, President & Chief Executive Officer Mike Nefkens Jim Murrin Henry Gomez Tracy Keogh EVP and Chief Marketing & Communications Officer EVP, Human Resources SVP, HP Corporate Separation Management Office and Corporate Strategy Antonio Neri Cathie Lesjak John Schultz EVP & General Manager, Enterprise Group EVP & General Counsel Robert Mao EVP & Chief Financial Officer John Hinshaw Christopher Hsu EVP, Enterprise Services Dion Weisler EVP, Printing & Personal Systems EVP & Chief Customer Officer, Technology & Operations Robert Youngjohns Martin Fink EVP & General Manager, HP Software EVP & Chief Technology Officer SVP, Organizational Performance Chairman, HP China Region HP today Printing and Personal Systems Enterprise Group Enterprise Services Software HP Financial Services Creates products and solutions that deliver the best experience at home, at work, and on the go. Provides the industry leading Converged Infrastructure, Softwaredefined Data Center, and HP Helion. Advises and helps you transform and manage your IT environment for your best business outcomes. Helps you deliver modern apps, operate IT & cloud, secure your enterprise, and govern and monetize Big Data. Delivers investment solutions that maximize the full potential of IT to create better business outcomes. $57B $28B $22B $4B $3.5B HP to separate into two new industry-leading public companies Hewlett Packard Enterprise HP Inc. Fortune 50 company Fortune 50 company Revenue Mix* Financial Metrics* Key Markets Leadership 9 Enterprise Group 48% Enterprise Services 39% Personal Systems 60% Software 7% Printing 40% Financial Services 6% Revenue Operating Profit Operating Margin Revenue Operating Profit Operating Margin $57.6B $6.1B 10.5% $57.3B $5.5B 9.5% Servers Networking Software Converged Systems Storage Services Cloud Meg Whitman President & Chief Executive Officer Notebooks Mobility Ink Managed Desktops Printing Print Services Graphics Laser Printing Dion Weisler President & Chief Executive Officer * Based on reported HP segment revenue and segment operating profit for the last twelve months from Q4 fiscal 2013 to Q4 fiscal 2014, totals do not include Corporate Investments segment or intercompany eliminations The pressure on IT is high Enterprise imperatives Mega trends Speed innovation Big Data Accelerate services Improve flexibility Do more with less Manage risk Increasing demand for IT Solutions for a New Style of Business Cloud Mobility Security Understands what makes you successful Trusted brand A trusted partner for you Great track record of success Sees what’s ahead In the Idea Economy, anyone can change the world Digital everything … everywhere, every day, everyone connected Every business is a digital business Disrupting every industry Thriving in the Idea Economy requires a New Style of Business Proactive management of all forms of risk Hyper-connected workplace and ecosystem Apps, data, and experiences that create new outcomes Contextually aware and predictive IT must become a value creator and bridge traditional and new Contain costs Create outcomes Efficiently host workloads & services Continuously create and deliver new services Provide hardened systems & networks Manage and mitigate risk Store and manage data Provide real-time insight & understanding Automate business systems with software Differentiate products and services with software HP is the partner to transform your business and IT Transform to a hybrid infrastructure Protect your digital enterprise Enable workplace productivity Empower the data-driven organization © Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Capturing Magical Moments HP solutions help capture Disney memories Energizing market leaders to transform business and drive change Trust a true IT partner to propel you into the secure, agile, cloud-enabled, mobile-ready future What’s the challenge: 67% $12M of organizations require external help to implement cloud solutions1 The cost of business of responding to cyber-crime in 2014 averaged $12 million2 77% of businesses agree that decision making increasingly requires data in real time3 30% of business decision makers say slow app performance is a top challenge4 What’s our impact: 96% of Forbes Most Valuable Brands trust HP for their transformation toward hybrid infrastructure5 8 out of the top 10 Fortune Global 500 companies choose HP as a strategic partner to protect their enterprise5 HP empowers 8 out of the top 10 Fortune Global 500 companies to harness 100% of data5 What we deliver: The jump-start and sustained power to pull ahead of the competition A way to solidify IT as the key driver of value A true partner that provides IT Solutions for the New Style of Business 17 HP enables 7 out of the top 10 Fortune Global 500 to achieve fastpaced workplace productivity5 1 IDC 2013 CloudTrack Survey, McKinsey High Tech Channel Survey. 2 Gartner 2014 Annual CIO Survey. 3 IDC, “Measuring the Business Value of Converged Systems,” December 2014. 4 www.marketwatch.com/story/frost-sullivan-recognizes-hp-security-research-and-hp-tippingpoint-for-setting-industry-benchmark-among-security-research-organizations-2014-07-15-72034548. 5 Enterprise Data Warehouse (Integrated End Customer Reporting Domain) - End Customer Revenue from 2013 Q3 to 2015 Q2. “HP educates me about what’s possible, and then pulls together the resources and expertise to make it happen.” –Trevor Bennett, Information Systems Manager, Anaheim, Calif. Your ideas, your outcomes, your way Design your way – – – – – On-premise On-demand As a Service Hosted Managed Transform your way – – – – Applications Infrastructure Data center Business © Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Support your way Consume your way – Any app – Any hardware – Anywhere in the world – – – – Your partner Your cloud Your tools Your apps HP Enterprise Services Delivering the outcomes that matter across all industries Consumer Indus. & Retail We help our clients make and sell the world’s favorite products. 90 85 of the top 100 retailers are HP clients of the top 100 consumer goods companies are HP clients Communications Solutions Energy $ Financial Services We are one of the top service providers to the energy industry. We help banking, capital markets, and insurance clients reduce risk and increase profitability. 20 13+ Billion of the world’s top utilities and oil and gas companies rely on HP credit card transactions are processed annually by HP Transportation Services Manufacturing Healthcare Services We provide business process management services in the U.S. healthcare and managed care markets. 2.4 Billion healthcare transactions are performed annually by HP Public Sector Services We help airlines, airports, and related organizations with flight planning and electronic ticketing. We help optimize operations for discrete and process manufacturers. We specialize in “super-scale,” mission-critical ITO, applications, and BPO solutions. 450 Million 500 Million 75% 28 Million subscribers depend on HP mobility management solutions passengers board airlines each year with our help We make it easier for businesses to deliver the content and services their customers want. of the top manufacturers worldwide are HP clients common access cards to the United States Department of Defense are supported by HP Our own first customer A huge IT infrastructure 92PB of storage deployed on 3Par, XP, and EVA Millions of lines of code scanned by 77K+ 1,400+ active servers enterprise HPN routers 210M hits Manage per day on HP.com Optimized partner program with real-time sentiment analysis 9.2PB 413,000 data replicated per day mailboxes managed 123K+ mobile devices 2.5B security events logged per day with Prevented millions of denial of service attacks with 160 GBPS infrastructure capacity 20K+ HPN switches Analyze data from 100s of millions of active devices Focusing on your outcomes A global business focused on you Creating a better future Innovating to solve your future challenges Innovating far into the future Reinventing computing for a data-driven world Universal Memory combines memory and storage at petascale Workload-specific processing engines The Machine Breakthroughs in photonics transmit terabits of data via light Our innovations HP Living Progress Creating a better future for everyone Our actions HP helps you make it matter