HP Inc.

Good day, everyone, and welcome to the Q4 2018 HP, Inc. Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. And please note that today's event is being recorded. And I would now like to turn the conference over to Beth Howe, Head of Investor Relations. Please go ahead.

Good afternoon. I'm Beth Howe, Head of Investor Relations for HP, Inc., and I'd like to welcome you to the Fiscal 2018 Fourth Quarter Earnings Conference Call with Dion Weissler, HP's President and Chief Executive Officer, and Steve Feiler, HP's Chief Financial Officer. Before handing the call over to Dion, let me remind you that this call is being webcast. A replay of the webcast will be made available on our website shortly after the call for approximately one year. We posted the earnings release and the accompanying slide presentation on our investor relations website at www.hp.com. As always, elements of this presentation are forward-looking and are based on our best view of the world and our businesses as we see them today. For more detailed information, please see disclaimers in the earnings materials related to the forward-looking statements that involve risks, uncertainties, and assumptions. For discussion of some of these risks, uncertainties, and assumptions, please refer to HP's SEC reports, including our most recent Form 10-K. HP assumes no obligation and does not intend to update any such forward-looking statements. We also note that the financial information discussed on this call reflects estimates based on the information available now and could differ materially from the amounts ultimately reported on HP's Form 10-K for the fiscal year ended October 31, 2018, and other HP SEC filings. During this webcast, unless otherwise specifically noted, all comparisons are year-over-year comparisons with the corresponding year-ago period. For financial information that has been expressed on a non-GAAP basis, we've included reconciliations to the comparable GAAP information. Please refer to the tables and slide presentation accompanying today's earnings release for those reconciliations. And now I will hand it over to Dion.

Good afternoon. Thanks for joining us. It was great to see so many of you in New York for our security analyst meeting. As we close fiscal 2018, I'm proud of the results we delivered. It was a strong quarter and an exceptional year for HP. Our results demonstrate sustained operational performance, a disciplined investment framework, and prudent cost management. Our core growth and future strategy is working, and we are well positioned for continued success across our categories and our regions. For quarter four, we delivered revenue of $15.4 billion, up 10% with strong performance across regions and businesses, non-GAAP earnings per share of $0.54, an increase of 23%, and strong free cash flow of approximately $800 million. For the full year, we grew 12%, adding over $6.4 billion of revenue. We grew non-GAAP earnings per share 22% to $2.02. We returned over $3.5 billion to shareholders through share repurchases and dividends, and we generated these results while continuing to invest in our strategic initiatives that are helping to strengthen our long-term competitiveness. We are consistently executing and winning with customers and partners, while simultaneously fulfilling the commitments we made to our shareholders. With our winning portfolio and strong financials, we entered 2019 well-positioned to compete across personal systems, printing, and 3D. Let's look at each of our segments. Personal systems continue to deliver impressive profitable growth both in the fourth quarter and for the full year. In quarter four, revenue and operating profit grew 11%. For the full year, revenue grew 13% and operating profit grew even faster at 17%, adding more than $200 million to the bottom line. These results reinforce the strength of our market position as we focus on segmentation and delivering differentiated hardware, services, and solutions. HP continues to be a leader in product design. At our analyst meeting, we introduce you to the stunning leather Spectre Folio. The product is now hitting the market, receiving high praise for design, versatility, and performance, and driving renewed excitement in the PC category. We also recently launched two new Spectre x360s, The Spectre X360-13 delivers the world's longest battery life in a quad-core convertible, while the Spectre X360-15 is the most powerful convertible we've ever created. In commercial, we unveiled the latest Elitebook, the world's smallest and lightest 14-inch business convertible, and the first with gigabit class 4G LTE. In gaming, our OMEN PCs and displays powered the Overwatch World Cup, where 24 countries battled for domination in front of nearly 10 million viewers. We also launched our latest OMEN desktop and a remote service called GameStream that turns the OMEN PC into a cloud-based gaming server to enable experiences on the go. And at Adobe MAX, we unveiled the new Z by HP Workstation Portfolio, and announced a subscription-based hardware and services bundle specifically designed for elite creative professionals that combines powerful PCs, pro-grade displays, printers, and accessories. As we innovate across our core, we are also continuing to accelerate our growth pillar with device as a service. 60% of IT organizations tell us their resources are increasingly taxed by device management and 80% of their costs are coming after the PC is purchased. HP DAS uses data and analytics to reduce costs and optimize the experience for IT and for end users. This quarter, the Technology Services Industry Association recognized HP DAS with its Star Award for Innovation in a Standard Managed Service Offering. This is one of the highest honors in the technology services industry. Like personal systems, printing continues to drive profitable growth. Total print revenue was up 9% in quarter four and 11% for the full year with growth in all regions and across hardware and supplies. Operating profit grew in both periods, adding $177 million to the bottom line for the full year. This consistent growth is yet another proof point of customer adoption of HP's innovative portfolio. Similar to the PC market, design is increasingly important for printers. Earlier in the quarter, we introduced the world's first smart home printer, HP Tango. Tango combines voice-activated and app-based printing with stunning design and convenience through our Instant Ink subscription program. We believe that Tango reinvents expectations for home printing, setting a new standard for print to fit seamlessly into consumers' lifestyles. We are also strengthening our leadership in the office space to drive new contractual and A3 growth opportunities. As we mark the anniversary of the S print acquisition, I am pleased with the progress we have made. We are one team focused on accelerating our penetration of this large addressable market. Earlier this month, We further accelerated our penetration of the copier market by completing the acquisition of Apigee, providing us with deep solutions and services expertise and a faster means to scale this business and tap into the profit pools that they offer. Lastly, we are focused on growing our graphic solutions business. Our strategy is to provide market leading products and solutions that enable customization and personalization while reducing both inventory and turnaround time for print service providers. A key win that showcases the power of digital is EPAC Flexible Packaging, an all-digital flexible packaging converter who purchased 20 additional HP Indigo digital presses to expand operations across the US. In 3D printing, this quarter we announced our new MetalJet platform, bringing 3D mass production to the metals manufacturing industry for the first time. We're excited by the potential of this business and are working closely with automotive and industrial leaders like GKN, Volkswagen, Parmatech and many more. We're especially encouraged by the volume of final part applications we are delivering across verticals including the transportation, industrial and medical markets. At Formnext earlier this month, Together with customers and partners, we showcase many of the new applications that have developed over the last year. One of these, BMW, is now manufacturing production parts for their cars on HP's multi-jet fusion. And Forecast 3D now has two dozen multi-jet fusions deployed, operating around the clock to produce millions of final parts as their business grows. Looking at the year in total, we made great strides in 3D printing. We expanded our portfolio, increased the number of customer applications tenfold, signed numerous strategic partnerships, and generated multi-unit customer orders. MultiJet Fusion is now the most used industrial 3D printer in the world. Overall, I'm pleased with our company's 2018 results. We've done what we said we would do. We're growing the business, top line and bottom line, and generating strong cash flow. We're delivering returns for our shareholders and investing in the future to create long-term value. Looking ahead to 2019, as we said at the recent security analyst meeting, we're monitoring several evolving market dynamics, including the global trade environment and currency volatility. In addition, Our caution related to industry-wide CPU availability is now playing out and is constraining our growth. We're working diligently with our vendors and partners to reduce the short-term impacts on our customers in light of our ongoing strong demand. Against this backdrop, we are focused on the things that made us successful in 2018, including innovation, execution, and cost management. Short-term category headwinds do not diminish our excitement about this business and will not derail our long-term strategy. We will continue to play our own game, execute our strategy with rigor and aim for sustainable growth for the long term. And we will do so with the same sense of urgency and passion that has propelled our business forward since separation. With that, let me turn the call over to Steve to go through additional details. Thanks, Dionne.