llhIIIllhIIIIIIllhIllhIIII/////I////jjJ///III 12025471 Ci fl/ 2011 Annual ort Dear stockholders et how confident in the First me say am future of Hewlett-Packard We have strong leadership from the consumer markets to the commercialthe industrys broadest portfolio unmatched reach and scale and an exceptionally talented and committed workforce look forward to building on this powerFul foundation to maximize the value of HP in the marketplace the of both the structured information that The in review By harnessing power year resides in databases and the unstructured information like video texts and emails that exists in the real world we are well Throughout fiscal 2011 we experienced number of changes positioned to define the future of information management and challenges Third we met our stated outlook for the fourth quarter As An uncertain macroeconomic environment especially in the are focused on consistent management team we very delivering United States and Europe resulted in weak consumer market financial performance and meeting the public goals we set that persisted throughout the year and commercial market that started strong but softened as the year progressed Fourth we developed go-forward plan for the webOS software platform As you may recall we discontinued our webOS device Additionally we faced number of natural disasters including business in August but we retained the highly regarded operating the tsunami in Japan and flooding in Thailand At HP we decided contribute webOS the system We subsequently to to open loined in the global relief efforts committing money technology source community HP plans to continue to be active in the and expertise to help with the recoveries Our hearts go out to development and support of webOS By combining the innovative all those affected At the same time we are working diligently webOS with the of the source chain and inventories platform development power open to manage our supply to mitigate as community there is the opportunity to significantly improve much as possible any adverse impact to our customers and and web services for the next of devices our businesses applications generation We also acquired the software Autonomy to help company What is HP position HP as leader in the future of information management However amid number of strategic announcements and Over the past few months as met with customers partners changes we did not clearly articulate our direction Our execution and employees one question kept being asked What is HP the and had to during year proved inconsistent we manage Our answer through CEO transition HP is the worlds largest provider of information technology All of these issues led to mixed financial performance While infrastructure software services and solutions to individuals and this was certainly not HPs best year our businesses remain strong organizations of all sizes Thats what we are and we are proud and we generated solid cash flow of it Its straightforward and clear In fiscal 2011 HP delivered At the core of HP are our infrastructure products Representing about 70 of our this is an area where HP excels Net revenue of $127.2 billion up percent year-over-year percent revenues We are the market leader in PCs industry-standard servers and Cash flow from of operations $12.6 billion up percent imaging and printing and we are well positioned across key year-over-yea enterprise infrastructure segments Everything else we do either or builds on this massive GAAP diluted earnings per share of $3.32 down 10 percent amplifies differentiating strength year.over.year of On top our infrastructure products we layer software Our Non-GAAP diluted share of earnings per $4.88 up percent software allows and us to manage secure technology environments year.over.year consisting of our infrastructure as well as otherssomething customers really need Our Autonomy acquisition also enables us to solve host of new customer problems which will provide Eary priorities new growth opportunities for HP and our customers Software at HP is about solving customer problems initial focus has been to out of the headlines My as CEO get HP and back to being the reliable trusted company that you can Services our core infrastructure and software businesses count on That meant we needed to make set of decisions to wrap and customers the most value from HP of businesses help get Many our remove any uncertainty surrounding our services customers have relationships with HP that have lasted for decades HP do what do best made decision Services position to we act as First we about the future of our PC business the strategic partner to customers by leveraging our full portfolio Personal Systems Group After announcing that we would assess that their and making sure HP technology is meeting needs possible separation of the business in August we conducted thorough fact-based analysis that clearly indicated that PSG Finally our solutions make it all work by combining our should remain of HP with this the part We can say certainty is to advance customers for stockholders and technologies organizational objectives right answer customers and PSG HP are in holistic and better compelling way truly together We have packaged our enterprise portfolio into Second we closed the acquisition of Autonomy market leader five solutions sets in managing unstructured data We positioned Autonomy for success within HP new Information by creating Management Converged Infrastructure transforms aging rigid technology business unit that brings together Vertica another Autonomy environments into agile infrastructures that can easily scale up fiscal 2011 and our information acquisition existing management or down to meet changing demands business This focused organization will accelerate our momentum in this market and bring new capabilities to our customers takes that were Ive already discussed the importance of restoring our credibility Application Transformation applications designed of and with all of and No priority is to strengthen our and implemented for an old model technology you my and execute consistently after modernizes them to meet the needs of today and tomorrow operational discipline quarter to focus on the customer quarter Additionally we are going and businesses Enterprise Security protects people by keeping make for to We are fixing our sales tools to it easier customers threats sensitive information safe from malicious faster do business with us and help our salespeople respond of information to their needs Were to double down on qualify and Information Optimization harnesses the power going decision service delivery ensuring customers have great experience in all its forms to drive better insight foresight and from the first time we sit down with them until their solution is making as well as better workflow management value We build better up running and delivering want to the thats best for Hybrid Delivery delivers our solutions in way and online customer experience for both enterprise customers data the customer be that on.premise traditional centers consumers We also are investing in our people to attract that private cloud public cloud or combination optimizes retain and develop the best talent in the industry We need the and cost performance in the at the time to meet customer right people right jobs right Each of the customers needs and deliver results Finally and importantly we are going This is who we are piece portfolio helps and the to invest in the innovation that expect from HP We turn challenges into opportunities we bring pieces you increased value increased our RD spend last and plan to do so again in together to deliver customer year and that fiscal 2012 We want to deliver products services delight and inspire Thoughts so far In let me that and confident about closing just say am optimistic We have incredible people who are smart committed to our HPs potential We have work to do but HP has some of the has have solid and customers and passionate about our company HP best core franchises in technology We earnings the best in the have who want to do more terrific portfolioI believe that it is industry We cash flow base We customers team have market leadership and what we do really matters to our business with us We have world-class senior leadership the heart of who win customers Enterprise customers rely on HP to run and employees want to to their organizations and consumers trust us help manage and and deliver the personal information that they depend on look forward to updating all of you on our progress our the continues performance as year of What we do day in and day out is at the center our economy card transactions and our society HP helps ensure credit Sincerely calls get processed cell phone get connected mortgages get And underwritten and medical care gets delivered just as British on we have we help make sure pensioners get paid time thousand stories about the difference we make in the world that take have It is We great responsibility we very seriously lot of in what with our customers pride we accomplish Meg and we look forward to making difference for them in even more ways The road ahead the of While Id like to say that were through tough times many the fiscal 2011 headwinds are still with us as we enter fiscal the business 2012 and our near-term focus is on stabilizing which will Ive characterized 2012 as rebuilding year in we be doing the hard work that will position us to pursue consistent We that on the profitable long-term growth expect focusing will drive fundamentals