REINVENTING ETHICAL, SUSTAINABLESUPPLY CHAINS
HP Inc. Sustainability Briefing
January 22, 2018
1 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
Forward-looking statements
This presentation contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP Inc. and its
consolidated subsidiaries (“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 projections of net revenue, margins, expenses, effective tax
rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or
impact of cost savings or restructuring and other charges; any statements of the plans, strategies and objectives of management for future operations, including the execution of the restructuring plans and any
resulting cost savings, net revenue or profitability improvements; 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, including with respect to the timing and expected benefits of acquisitions and other business combination and investment transactions; 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 the delivery of HP’s 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, clients and
partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the results of the restructuring plans, including estimates and
assumptions related to the cost (including any possible disruption of HP’s business) and the anticipated benefits of the 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, 2016 and HP’s other filings with the Securities and Exchange Commission.
As in prior periods, the financial information set forth in this presentation, including any 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 reported amounts in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2017 and HP’s other filings with the Securities and Exchange
Commission. HP assumes no obligation and does not intend to update these forward-looking statements. HP’s Investor Relations website at http://www.hp.com/investor/home contains a significant amount of
information about HP, including financial and other information for investors. HP encourages investors to visit its website from time to time, as information is updated and new information is posted.
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.2
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.3
JUDY GLAZERGlobal Head of Sustainability and Product Compliance
ANNUKKA DICKENSHuman rights and Supply Chain Responsibility Director
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
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Sustainability at HP
Reinventing ethical, sustainable supply chains
Questions
AGENDA
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.5
OUR VISION
Create technology that makes life better for everyone, everywhere.
PRINTING
PERSONAL SYSTEMS
CORE$300B+ TAM*
• Lead commercial
• Grow premium
• Revitalize consumer
• Drive commercial
$40B+ TAM*
FUTURE
• Create new immersive categories
• Lead 3D printing
GROWTH$220B+ TAM*
• Disrupt copier market
• Accelerate graphics
• Drive commercialtransformation
SERVICES AND SOLUTIONS
OUR
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.6
*Source: HP internal analysis as of October, 2017
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.7
Customers call for it Employees value it Investors watch for it
© Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice.8
FACING THE CHALLENGES OF THIS CENTURY
2.3Number of Earths we’ll need by 2050
• Global population is on pace to hit 9.4 billion by 2050
• Global middle class reached 3.2 billion by 2016 and is expected to grow
• In the next 20+ years, energy use will rise 48%, GHG emissions will rise by 34%, and demand for water will be 40% higher than supply
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
“The betterment of our society is not a job to be left to a few. It is a responsibility to be shared by all.”
- Dave Packard
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
• Empower 500,000 factory workers with educational programs
• Double factory participation in sustainability programs
• Reduce GHG emissions from global operations by 25%
• Reduce product GHG emissions intensity 25%
• Recycle 1.2 million tonnes of products
• Enable better learning outcomes for 100 million people
REINVENTING FOR A BETTER WORLD
Learn more in our annual Sustainability Report9
Selected goals Selected goals
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
Circular and low carbon economy
at scale
Learning and digital inclusion
for the underserved
Supply chain leadership
going beyond the factory floor
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REINVENTING ETHICAL, SUSTAINABLE SUPPLY CHAINSInnovations to identify risk, drive shared value and foster industry collaboration
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
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ADVANCING SOLUTIONS AS AN INDUSTRY
Spotlight on: Multi-industry collaborations
MANAGING RISK THROUGHOUT THE SUPPLY CHAIN
BUSINESS INTEGRATION AND SHARED VALUE
Spotlight on: Supplier Onsite Survey (SOS) App
Spotlight on: SER Scorecard
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
MANAGING RISK THROUGHOUT THE SUPPLY CHAIN
13 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.14
HP’S APPROACH TO RISK SENSINGWe continually evolve our policies, standards, and management system
Supplier risk profiling
External data
Performance monitoringComprehensive audits Targeted assessments
Key Performance Indicator data
Multi-industry collaboration
Remediation
Capability building
Business IntegrationOn-boarding
SER scorecardIntegrated SER and procurement goals
We transparently report on our supplier responsibility program performance
Stakeholder engagement
SENSING RISK ADDRESSING RISK
TRANSPARENT SOCIAL VALUES HP has a history of industry leading transparency
to publish supply chain responsibility code of conduct (2002)
Named to DJSI World Index, FSTE4Good, CDP Climate, Water and Supplier Engagement A lists for 2017
IT company to publish aggregated supplier audit results (2005)
Voted most trusted technology company by consumers (PonemonInstitute, 2015)
IT company to publish its supply chain smelter list (2013)
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.15
1st
1st
1st IT company to publish a list of suppliers (2008)
1stIT company to publish complete GHG (2013) and water footprint (2014)
1st
Recognized as the industry leader in addressing forced labor and human trafficking (Know the Chain 2016)
16 © Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.16
SUPPLIER ONSITE SURVEY (SOS) APP PILOTImproving real-time data by empowering employees to report on sustainability issues
WHATSOS App provides real-time input of critical Labor, Health & Safety conditions in HP’s supplier factories
WHYIncrease visibility of sustainability issuesdeeper in the supply chain
WHOHP employees visiting or stationed at HP or supplier factories
SOS App: http://www.navreh.com/sos/#home_form
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BUSINESS INTEGRATION AND SHARED VALUE
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© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.18
SER SCORECARDAddressing risk and capturing opportunity: SER scorecard drives shared value outcomes
TOTAL SUPPLIER PERFORMANCE MANAGEMENT
SCORE
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY
SCORE
BUSINESS SCORE X =
Zero toleranceAudit/Assessment results
Timely corrective action planMaterial compliance
EnvironmentalConflict minerals
TechnologyQualitySupply
CostBusinessService
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ADVANCING SOLUTIONS AS AN INDUSTRY
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.20
MULTI-INDUSTRY COLLABORATIONCritical to achieve sustainable change at scale
© Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice.21
ONE OF THE WORLD’S MOST SUSTAINABLE COMPANIES
2017 Climate and Water “A” Lists
2017 Supplier Engagement “A” List
World Index, 2012-2017
Received Excellence Award for sixth time
Included on the FTSE4Good Index since 2003
One of the Most Sustainable Corporations in the World
International Corporate Achievement in Sustainable Development
Rated among the top 1% technology companies for CSR
Industry leader for addressing forced labor and human trafficking
Perfect 10 for efforts in corporate social responsibility, 2016 and 2017
© Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice.
TAKE THE NEXT STEPS
Understand our Supply Chain Approach
Review progress against key goals and metrics in our Sustainability Report
Access our Sustainability websiteand Supply Chain Responsibility page
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