REVENUE GROWTH BY PRODUCT CATEGORIES
- -----------------------------------------------------------------------------------------------
key product categories hp fy00 2001 projected hp fy01
growth market growth growth
(yoy) components
(yoy)
- -----------------------------------------------------------------------------------------------
always-on internet infrastructure:
- - servers - unix 16% 10%(1) 20%
- - servers - nt 10% 13%(2) 16%
- - storage -7% 19%(1) 20%
- - software (excluding verifone) 29% 15%(1) 38%
- -----------------------------------------------------------------------------------------------
- - services 14% 14%(1) 14%
- -----------------------------------------------------------------------------------------------
notebooks: 142% 8%(2) 42%
- -----------------------------------------------------------------------------------------------
PCs:
- - business -2% 3%(2) 5%
- - home 75% 6%(3) 18%
- -----------------------------------------------------------------------------------------------
information appliances: 81% 17%(3) 26%
- -----------------------------------------------------------------------------------------------
imaging and printing: 10% 12%(3) 12%
- -----------------------------------------------------------------------------------------------
Souces: 1 - IDC; 2 - IPR; 3 - HP
A slide labeled "F.Y. '01 Year over Year Revenue Growth by Geography
($u.s.)." The chart depicts a pie chart divided into four sections:
14% in North America;
12% in Europe;
23% in Asia Pacific;
and 19% in Latin America.
A notation below the chart indicates that total projected revenue for fiscal
2001 is $57 billion. A table next to the chart indicates that the projected
contribution to total revenue for each region is 46% for North America; 34%
for Europe; 15% for Asia Pacific; and 5% for Latin America.
FY01 GUIDANCE
- - revenues: + 15-17%
- - gross margin: 27.5-28.5%
- - operating expenses: + 10-12%
- - tax rate: 23%
- - comfortable with q1 and fy01 consensus
hp security analysts meeting bob wayman
RECURRING REVENUE
2nd half 2nd half
FY 00 FY 99
b$ % of revenue b$ % of revenue %-change-
-------------------------------------------------------------------------
consumables 4.4 18 3.6 17 22
financing 1.0 4 0.9 4 19
customer service 2.7 11 2.4 11 13
=========================================================================
8.1 33 6.9 32 18
A slide labeled "bco highlights." The slide depicts a pie chart divided into
four sections with the labels:
na (North America) 3.68;
eur (Europe) 3.30;
ap (Asia & Pacific) 1.54;
and la (Latin America) .39.
The sections are weighted by the amount indicated on the label. Underneath
the pie chart are two captions: "q4 $8.9b" and "fy00 $32.8b"
A slide labeled "performance: consumer shipments." The slide depicts a bar
chart with four bars arranged chronologically:
fy97 $8.6b;
fy98 $10.0b;
fy99 $12.2b;
fy00 $15.9b.
To the side of the chart are two bullet points: "fy00 shipment growth 30%"
and "fy00 net profit growth 43%."
A slide labeled "performance: fy00 regional growth." The slide depicts a pie
chart divided into four sections with the labels:
na (North America) 31%;
eur (Europe) 24%;
ap (Asia & Pacific) 53%;
and la (Latin America) 26%.
Next to the pie chart is a caption: "(shipments dollar value)" indicating
that the sections are weighted by that criteria.
To the side of the chart are three bullet points: "balanced regional growth,"
"acceleration globally - continues in q4" and "new categories entered in new
markets."
A slide labeled "performance: fy00 category growth." The slide depicts a pie
chart divided into four sections with the labels:
PCs 75%;
Appliances 53%;
Supplies 23%;
and Printers/Imaging 10%.
Next to the pie chart is a caption: "(shipments dollar value)" indicating
that the sections are weighted by that criteria.
To the side of the chart is a bullet point: "balanced category growth."
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements that involve risks and
uncertainties, as well as assumptions that, if they never materialize or
prove incorrect, could cause the results of HP and its consolidated
subsidiaries to differ materially from those expressed or implied by such
forward-looking statements. All statements other than statements of
historical fact are forward-looking statements, including any projections of
earnings, revenues, or other financial items; any statements of the plans,
strategies, and objectives of management for future operations; any
statements concerning proposed products, services, or developments; any
statements regarding future economic conditions or performance; statements of
belief and any statement of assumptions underlying any of the foregoing. The
risks, uncertainties and assumptions referred to above include the ability of
HP to retain and motivate key employees; the timely development, production
and acceptance of products and services and their feature sets; the challenge
of managing asset levels, including inventory; the flow of products into
third-party distribution channels; the difficulty of keeping expense growth
at modest levels while increasing revenues; and other risks that are
described from time to time in HP's Securities and Exchange Commission
reports, including but not limited to the annual report on Form 10-K for the
year ended Oct. 31, 1999, and subsequently filed reports. HP does not intend
to update these forward-looking statements.