HP Inc.

Overview Key strengths Key risks Global scale and strong brand recognition in printer and personal computing (PC) markets. Highly competitive and mature PC and printer markets. Significant PC market expansion from hybrid work and learn provides renewed growth opportunities for more frequent and higher level of hardware refreshes in future years. Increased shareholder return focus and use of balance sheet to achieve capital allocation objectives. Commitment to maintain low leverage in the 1.5x-2x range. We recently lowered our information technology (IT) industry growth expectation to 5% in 2022 from 7% previously, and now forecast global PC shipments to decrease 2% versus growth of 2%. We expect the uncertain environment and inflation will somewhat dampen overall IT spend and increase the

...While we expect the company to experience steady demand and good EBITDA and free operating cash flow (FOCF) generation in fiscal 2022, PC markets have experienced significant growth and very favorable pricing recently that may be difficult to sustain considering the uncertain global macroeconomic environment. We recently lowered our information technology (IT) industry growth expectation to 5% in 2022 from 7% previously, and now forecast global PC shipments to decrease 2% versus growth of 2%. We expect the uncertain environment and inflation will somewhat dampen overall IT spend and increase the risk for PC unit growth to underperform our...

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