HP 2012 Annual Report Download - page 3

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The Year in Review
In the rst year of our turnaround eort, we provided a frank assessment of the challenges facing HP,
laid out clear strategies at all levels of the corporation, and mapped out our journey to restore HP’s
nancial performance. Most importantly, we did what we said we would do in scal 2012 – we began
taking action to bring costs in line with the revenue trajectory of the business and met our full-year
non-GAAP earnings per share outlook.
We have just completed year one of our journey, and we are already seeing tangible proof that the steps
we have taken are working. This includes generating $10.6 billion in cash ow from operations for scal
2012. HP used that cash to make signicant progress in rebuilding our balance sheet – reducing our
net debt by $5.6 billion during the year – and returned $2.6 billion to stockholders in the form of share
repurchases and dividends.
Our eorts in scal 2012 also included beginning to tackle the structural and execution issues we
identied, and building the foundation we need to improve our performance in the face of dynamic
market trends and macroeconomic challenges.
$10.6B
in cash ow from
operations for
scal 2012
1
Dear Stockholders,
Fiscal 2012 was the rst year in a multi-year
journey to turn HP around. We diagnosed the
problems facing the company, laid the foundation
to x them, and put in place a plan to restore HP
to growth. We know where we need to go, and
we are starting to make progress.