Dear Stockholders

\\E\lllli\\ll\\ll\l\illl\\%lfl\ 13000139 SEC MaU processing Section FEB 04 Z013 washington DC 405 Dear Stockholders Fiscal 201 Was the first year in mufti-yar the journey to turn HP around We diagnosed problems faclngthe company laid the foundation to fix them and put in place plan torestore HP to growth We know where we need to go and we are starting to make progress The Vearin Review frank assessment of the challenges facing HP In the first year of our turnaround effort we provided to restore HPs laid out clear strategies at all levels of the corporation and mapped out our journey would do in fiscal we financial performance Most importantly we did what we said we 2012 began and met our taking actiOn to bring costs in line with the revenue trajectory of the business full-year outlook nonGAAP earnings per share that the We have one of our and we are already seeing tangible proof steps Just completed year journey $1O.6B flow for fiscal we have taken are working This includes generating $10.6 billion in cash fromperations sheet 2012 HP used that cash to make significantprogress in rebuilding our baLance reducingour in cash flow from stockholders in the form of share net debt by $5.6 billion during the year and returned $2.6 biLlion to operations for repurchases and dividends fiscal 201 Our efforts.ln fiscatZO2 also incLuded beginningto tackLe the structural and execution issues we in the face of identified and building the foundation we need to improve our performance dynamic market trends and macroeconomic challenges This foundation includes assembling strong leadership team and investing in systems and tools that make it for easier us to manage our business allocate resources and prioritize investment dolLars For example to better empower and enable our sales teams we successfully rolled out new customer relationship management system to almost 30000 HP employees To more focus back to the bring business we implemented series of organizational changes such as consolidating our personal computer and printing businesses under the same senior executive We also leadership combined our global accounts sales organization with our enterprise servers and business and our services business soJage networking technology to create new Enterprise .GrFjnaLy we centralized all of our marketing and communications activities In we announced May multi-year restructuring program to streamline the company and create the to invest in innovation As of the end of capacity fiscal 2012 we are on track to realize the savings that we outlined in that announcement to Webeglorking optimize our supply chain reduce the number of stock-keeping units SKUs and refine atforms our real estate strategy improve our business processes and implement consistent pricing and promotions We have also taken steps to refocus our research and development efforts to extend HPs technology in our core markets Our and leadership product service development teams have moved aggressively to better understand customer needs align our portfolio and speed our time to market We modified our incentive compensation structure for.senior executives to increase the focus on the underlying drivers of stockholder value including an increased emphasis on cash flow and the addition of new return on invested capital performance metric Finally fiscal 2012 was Landmark year for product announcements including our first new lire of multi-function in seven printers years an impressive new line of Windows PCs such as the Spectre XT TouchSmart and ENVY and the HP x2 ElitePad the worlds first tablet optimized for the enterprise in addition we introduced comprehensive cloud strategy and number of new cloud products and services And we updated our enterprise security portfolio with scalable solutions that give customers the 360-degree view they need to protect the 21st century enterprise $2.6B Multi-Year Journey returneu to We fiscal 2013 began with stronger financial foundation an empowered Leadership team and clear stockholders in but we have strategy more work to do on the multi-yearjourney ahead of us the form of share repurchases and FIscal 2013 is be going to fix-and-rebuild year as we focus on working through the anticipated dividends disruptions expected to accompany the organizational changes we made in fiscal 2012 We wilt continue to implement our cost-reduction and operational initiatives make investments in our business in particuLarly tools systems processes and instrumentation and maintain our focus on discipLined allocation capital We will also continue to drive product innovation in our core markets improve our commercialization strategy with focus on cloud computing security and Information optimization and rebuild our go-to-market capability We are working hard to accelerate the timing of this journey Success hinges on consistency of execution most leadership focus and importantly great products and services delivered Iii the way that customers want to buy them Looking Ahead While we have faced some big challenges we also see some big opportunities ahead and we are well positioned to take of those advantage opportunities with our remarkable set of assets and strengths Our unparalleled scale and distribution allows us to reach customers and partners in any corner of the globe at the best possible price Our brand is trusted by customers around the world We have talented and resilient employees that are committed to our customers and culture of great engineering and innovation Above aLl we have an incredibly loyal group of customers and partners who want our company to succeed Overthe years these customers have made enormous investments in HPs technology and they need us to continue to provide solutions for todays new style of IT This new of IT Lower styLe promises costs simplicity and speed Driven by cloud mobility and big data it is changing how technology is consumed and delivered and how end users engage with it For organizations around the world this new style of IT has the potential to reshape the competitive landscape by lowering barriers of entry in all industries And this new of IT will demand style foundation to support much greater agility lower cost and higher degree of accessibility This foundation will span devices infrastructure software and services to meet the expectations of employees customers and partners The IT industry must evolve how it works to succeed in this new environnient and can no longer focus on just the pieces hardware software and services but must focus on all of the above HP is the ideal with the solutions for the partner right future Our diverse portfolio sets us apart and we are the that deliver only company can hardware software and services that meet the needs of all of our customers from the enterprise to the consumer After full it is year as CEO clear to me that HP is at the forefront of unique opportunity at critical time of Taking advantage this moment will reinforce HPs position as world-class technology leader delivering unrivaled integrated solutions for our customers over the next generation am confident that over time this will increasingly equate to improved financial performance and increased stockholder value Looking ahead remain optimistic and confident about our future We now have the people the plan and the foundation in place to help us succeed on the next phase of the journey Thank you for the confidence you have given to all of us by investing in HP and believing in all that we can accomplish together Sincerely Meg Whitman Members of the Board Haas after the in 1971 including Marc Andreessen joining company Vice Chairman from 1998 to 1999 Director of the Director since 2009 Electronic Materials business from 1996 to 1999 Age 41 and Vice President and Regional Director of the Mr Andreessen is co-founder of AH Capital Asia-Pacific Region from 1993 to 1998 Mr Gupta Management LLC doing business as Andreessen also is director of Delphi Automotive PLC Tyco Horowitz venture capital firm founded in July International Ltd The Vanguard Group and several 2009 From 1999 to July 2007 Mr Andreessen private companies served as Chairman of Opsware Inc software company that he co-founded From March 1999 John Hammergren served to September 1999 Mr Andreessen as Director since 2005 Chief Technology Officer of America Online Inc Age 53 software company Mr Andreessen co-founded has served as Chairman of software Mr Hammergren Netscape Communications Corporation McKesson Corporation healthcare services and company and served in various positions information technology company since 2002 Mr including Chief Technology Officer and Executive Hammergren joined McKesson in 1996 and held Vice President of Products from 1994 to 1999 number of management positions before becoming Mr Andreessen also is director of eBay Inc President and Chief Executive Officer in 2001 Mr Facebook Inc and several private companies director of S.A Hammergren also is former Nadro de C.V Mexico Shumeet Banerji Director since 2011 Raymond Lane Age 53 Director since 2010 of Booz Mr Banerji has served as senior partner Age 66 2012 Company consulting company since May Mr Lane was appointed executive Chairman in Previously Mr Banerji served as Chief Executive September 2011 after having served as HPs Officer of Booz Company from July 2008 to May non-executive Chairman since November 2010 Mr 2012 Prior to that Mr Banerji served in multiple Lane has served as Managing Partner of Kteiner roles at Booz Allen Hamilton consulting company Perkins Caufield Byers private equity firm and

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