1、2024 Lenovo Internal.All rights reserved.Q3FY25 Earnings AnnouncementFeb 20,20252025 Lenovo Internal.All rights reserved.2023 Lenovo Internal.All rights reserved.Forward-Looking StatementThis presentation contains“forward-looking statements”,which are statements that refer to the expectations and pl

2、ans for the future and include,without limitation,statements regarding Lenovos future results of operations,financial condition or business prospects as well as other statements based on projections,estimates and assumptions.In some cases,these statements can be identified by terms such as expect,in

3、tend,plan,believe,estimate,may,will,should and comparable words(including negative variants of such words).These forward-looking statements,reflect the current expectations and plans of the directors and management of Lenovo,which may not materialize or may change.Many risks,uncertainties and other

4、factors,some of which are unpredictable and beyond Lenovos control,could affect the matters discussed in these forward-looking statements.These factors include,without limitation,economic and business conditions globally and in the countries where we operate,Lenovos ability to predict and respond qu

5、ickly to market developments,consumer demand,pricing trends and competition;changes in applicable laws and regulations(including applicable tax and tariff rates).Any variance from the expectations or plans on which these forward-looking statements are based could cause Lenovos actual results or acti

6、ons to differ materially from those expressed or implied in these statements.These forward-looking statements are not guarantees of future performance and you are cautioned not to place undue reliance on these statements.Lenovo undertakes no obligation to update any forward-looking statements in thi

7、s presentation,whether as a result of new information or any subsequent change,development or event.All forward-looking statements in this presentation are qualified by reference to this paragraph.22025 Lenovo Internal.All rights reserved.2025 Lenovo Internal.All rights reserved.Chairman&CEOFebruary

8、 20,2025Yuanqing Yang2023 Lenovo Internal.All rights reserved.4Strong growth across core businessesWell positioned as Hybrid AI leaderSignificant increaseof group revenue&profit2023 Lenovo Internal.All rights reserved.5PerformanceSource:Internal Revenue$18.8 billion,up 20%YTY,double-digit YTY growth

9、 for 3 consecutive quarters Net income(HKFRS)$693 million,up 106%YTY All businesses achieved double-digit YTY revenue growth Non-PC revenue mix up 4pts YTY to more than 46%R&D investment increased 14%YTY,winning record number of awards for AI device innovation at CES 2025 Group:Strong growth of reve

10、nue&profit,Hybrid AI landing accelerates2023 Lenovo Internal.All rights reserved.6Opportunities&Sustainable growthHybrid AI creating huge opportunities for devices,infrastructure,solutions&servicesNew model driving AI democratization and applicationOn-device AI,Edge AI&AI deployment in enterprises a

11、cceleratingLenovo pioneering Hybrid AI vision to realize“Smarter AI for all”Constantly improving full-stack AI capabilities&portfolioPersonal AI:initial success of 5-feature AI PC Enterprise AI:hybrid infrastructure&Lenovo Hybrid AI AdvantageGroup:Strong growth of revenue&profit,Hybrid AI landing ac

12、celerates2023 Lenovo Internal.All rights reserved.7IDGIntelligent Devices Group:Double-digitrevenue growth,Leading in AI devicesSource:Internal,IDCPerformance Revenue$13.8 billion,up 12%YTY Strong profitability,operating margin 7.3%PC:revenue up 10%YTY;market share 24.3%;industry leading profitabili

13、ty;five-feature AI PC exceeding volume mix expectation in China Smartphone:revenue up 21%YTY;hypergrowth in AP(+155%YTY),EMEA(+28%YTY);significant share gain in many markets2023 Lenovo Internal.All rights reserved.8 8Opportunities&Sustainable growthHybrid AI creating growth opportunities for device

14、marketPC market entering new refresh cycleAI PC to represent 80%of PC industry landscape by 2027Driving smartphone market refresh cycleLenovo driving AI devices innovation Converge more powerful computing&more efficient models into AI devices Drive form factor innovation Optimize AI agent capabiliti

15、es Enhance multi-device connectivity Build key applications ecosystemIDGIntelligent Devices Group:Double-digitrevenue growth,Leading in AI devicesSource:Industry research2023 Lenovo Internal.All rights reserved.9PerformanceISGInfrastructure Solutions Group:Fast growth,Breaking even,Heading towardpro

16、fitable growth Revenue$3.9 billion,record high,up 59%YTY Returned to profitability CSP hypergrowth(+94%YTY)to reach historic high;E/SMB steady growth(+7%YTY)AI server generated steady revenue Neptune liquid cooling solutions expanded into wider verticalsSource:Internal2023 Lenovo Internal.All rights

17、 reserved.10Opportunities&Sustainable growthICT market shifting to hybrid infrastructureHybrid infrastructure supported by“Client-Edge-Cloud(hybrid)-Network”architectureServer market grows at 12%CAGR 2024-2027AI compute growth acceleratesLenovo driving full stack infrastructureExecute the CSP+E/SMB

18、strategy Simplify product portfolioStrengthen go-to-market capabilitiesOptimize E/SMB business modelsISGInfrastructure Solutions Group:Fast growth,Breaking even,Heading towardprofitable growthSource:Industry research2023 Lenovo Internal.All rights reserved.Performance11 Revenue$2.3 billion,up 12%YTY

19、,double-digit YTY growth for 15consecutive quarters Operating margin 20%Managed Services and Project&Solution Services revenue mix 59%,up 5pts YTY Built lighthouse cases of AI solutions for enterprise customersSSGSolutions&Services Group:Record revenue&high profitability,Building Hybrid AI Advantage

20、 Source:Internal2023 Lenovo Internal.All rights reserved.12Opportunities&Sustainable growthSource:Industry researchHybrid AI driving solutions&services demand growthIT services market expected solid growth for mid-term(CAGR 9.4%,2024-2027)AI services growth more than twice as fast as the overall mar

21、ketNew opportunities for AI-native solutions&servicesLenovo building Hybrid AI AdvantageBuild Hybrid AI Advantage framework capabilitiesSSGSolutions&Services Group:Record revenue&high profitability,Building Hybrid AI Advantage 2023 Lenovo Internal.All rights reserved.13From scaling to higher profita

22、bilityPCInfrastructure solutionSmartphone2023 Lenovo Internal.All rights reserved.Continuous investment on AI innovation14Smarter AI for AllEnriched brand equityStrengthened globalization capabilitiesOperational Excellence2025 Lenovo Internal.All rights reserved.Chief Financial OfficerFebruary 20,20

23、25Wong Wai Ming15,72113,83315,447 17,850 18,796 Q3FY23/24Q4FY23/24Q1FY24/25Q2FY24/25Q3FY24/25Revenue Record PerformancesPerformance Q3 FY24/252025 Lenovo Internal.All rights reserved.Group net income of US$693M,106%year-to-year growth Premium-to-market,double-digit YTY growth across business groups

24、and geographies Diversified growth engines:Record smartphones sales1;Elevated to top-52 in global market excluding China ISG achieved strong growth and profitability,the 1st breakeven in seven quarters;Unique dual CSP and ESMB strategic focus optimizes growth&profitability opportunities Award-winnin

25、g AI PCs and innovations for future growth;Better AI efficiency and cost-effectiveness to bolster Hybrid AI adoption 1 Smartphone sales reached record sales of Q3.Global excluding China market;we achieved our best ranking in over five years,reaching No.5,and recorded the highest YTY growth among the

26、 top five vendors.3Q3FY24/25 HKFRS Net Income includes non-recurring/non-cash items;details,please check P.27.4 Non-PC revenue includes revenues from SSG,ISG and non-PC part of IDG.16337248243359430 0100200300400500600700Q3FY23/24Q4FY23/24Q1FY24/25Q2FY24/25Q3FY24/25HKFRS Net Income3Non-HKFRS adjustm

27、ents263693Non-HKFRS net incomePCSmartphoneInfrastructureServicesRevenue contribution4PC:54%Non-PC:46%+20%Asia Pacific32252419Geographical Sales(%)EMEA+11%YTYChina+21%YTY+31%YTYAmericas+20%YTYQ3FY24/25+106%HKFRS net incomeStrong Balance Sheet for Future Growth2025 Lenovo Internal.All rights reserved.

28、Strong business fundamentals and robust capital management drove YTY improvements and growth in Cash balance approaching US$4B Cash conversion cycle Strong liquidity continued to support 14%YTY R&D spending growth Better financing cost efficiency to support revenue growth;Revenue growth of 20%YTY fa

29、ster than financing cost up by 10%YTY Effective financing cost initiatives including optimized supply chain management 3,466 3,560 3,911 4,179 3,934 Q3FY23/24Q4FY23/24Q1FY24/25Q2FY24/25Q3FY24/25Cash Balance547 532 476 548 621 Q3FY23/24Q4FY23/24Q1FY24/25Q2FY24/25Q3FY24/25R&D Expenses1 days-2 days0 da

30、ys6 days0 daysQ3FY23/24Q4FY23/24Q1FY24/25Q2FY24/25Q3FY24/25Cash Conversion Cycle+14%1743 53 54 55 52 51535048489310810497100Q3FY23/24Q4FY23/24Q1FY24/25Q2FY24/25Q3FY24/25CCC Breakdown(Days)Inventory Receivable Payable+14%PerformanceAchieved 12%revenue growth YTY with a resilient,industry-leading 7.3%

31、operating profitHighest PC market share in 5 years Smartphone sales grew by 21%YTY;Motorolas market share at a 5-year high2,with hypergrowth in Asia Pacific and EMEA3Record smartphone premium mix;growing premium PC mix thanks to strength in gaming and workstations Lenovos 5-feature AI PCs4 account f

32、or 15%of its PRC notebook sales;Proprietary AI Agent and enhanced multi-device connectivity to allow for a truly differentiated user experienceIDGIntelligent Devices Group1181 Consists of PC,tablet,smartphone,and smart devices business.2We reached highest market share in PC in 5 years;Smartphone mar

33、ket share in Non-China market reached record high than any of our Q3FY.3 EMEA:Europe,the Middle East and Africa.4AI PC five features include 1)a personal intelligent agent using natural language user interface,2)a compressed local LLM,3)heterogenous computing with CPU/GPU/NPU,4)privacy and security

34、protection,and 5)a rich AI application ecosystem.Performance2025 Lenovo Internal.All rights reserved.30%+Premium mix in PC and smartphone911 773 828 990 1,000 Q3FY23/24Q4FY23/24Q1FY24/25Q2FY24/25Q3FY24/25Operating ProfitRecord75 CES awards for first-of-its-kind rollable AI PC,ThinkBook Plus Gen 6Hig

35、hestmarket share in PC and smartphone in 5 years2+10%12,36210,46311,42213,514 13,784 Q3FY23/24Q4FY23/24Q1FY24/25Q2FY24/25Q3FY24/25Revenue+12%ISGInfrastructure Solutions Group 2025 Lenovo Internal.All rights reserved.19Performance2,4732,5333,1603,305 3,938 04,000Q3FY23/24Q4FY23/24Q1FY24/25Q2FY24/25Q3

36、FY24/25Revenue(38)(97)(37)(36)1-1.5%-3.8%-1.2%-1.1%0.0%-4.5%-4.0%-3.5%-3.0%-2.5%-2.0%-1.5%-1.0%-0.5%0.0%(120)(100)(80)(60)(40)(20)020Q3FY23/24Q4FY23/24Q1FY24/25Q2FY24/25Q3FY24/25 Operating profit/(loss)Operating marginOperating Profit/(Loss)and MarginProfitableGrowth:Successful turnaround with segme

37、nt profit up by$39M YTY90%+YTY growth on CSP revenue for 3 consecutive quarters40%potential energy reduction enabled by Neptune Liquid Cooling Technology59%YTY revenue hypergrowth with profitability turnaround Outstanding CSP growth to a record high;Solid execution of the right strategy to capture p

38、rofitable high-growth opportunity,through unique ODM+model for optimal scaleStrong progress in ESMB performance through strategic initiatives Growing AI server revenue contribution;Expanded Neptune liquid-cooling technology adoption across vertical industries beyond supercomputingAnnounced definitiv

39、e agreement to acquire Infinidat Ltd,with regulatory approval expected 2H in 2025+59%Quarterly revenue hit a record high,making 15th consecutive quarters YTY growth with healthy operating margin at 20%+AI-powered portfolio continue to drive momentum for attached services with elevated hardware user

40、experience Lenovo Hybrid AI Advantages suite of offerings resonate with market demand and drive premium to market growth across TruScale as-a-Service,Hybrid Cloud Services and Digital Workplace Solutions.2,0211,8201,8852,165 2,257 04,000Q3FY23/24Q4FY23/24Q1FY24/25Q2FY24/25Q3FY24/25Revenue SSGSolutio

41、ns&Services Group 2025 Lenovo Internal.All rights reserved.412 389 396 442 459 -100 200 300 400 500 600 700Q3FY23/24Q4FY23/24Q1FY24/25Q2FY24/25Q3FY24/25Operating Profit+12%20+11%59%of SSGs revenue from non-hardware-tied businessRecord Revenue and profit15thconsecutive quarterof double-digit revenueY

42、TY growthPerformance Drive scalable growth and profitability with a focus on key verticals and building repeatable solutions with Lenovos IPs Capture strong demand for hybrid working,hybrid cloud,and sustainability services Increase penetration in the commercial PC and ESMB infrastructure segments E

43、stablish TruScale as a comprehensive as-a-Service portfolio to capture fast-growing demandSSG:Serve as a New Growth Engine with High Profitability Deliver differentiated technology solutions in general purpose server computing,hybrid cloud,High Performance Computing,data management,AI and edge compu

44、ting,all featuring an“As a Service”option Make AI an essential element in everything Lenovo does to drive growth Leverage unique ODM+business and manufacturing model to capture demand and improve profitabilityISG:Continue to Drive Hypergrowth and Ever-improving Profitability Continue to invest in in

45、novation and accelerate AI PC transition to ensure premium-to-market growth and leading industry position Execute smartphone growth plan with increasing premium mix with foldable Moto Razr,Moto Edge and AI development Optimize operational efficiency to ensure leading profitability while developing n

46、on-PC business and device collaborationIDG:Maintain#1 Position in PC with Leading Profitability and Accelerate Non-PC Growth Outlook212025 Lenovo Internal.All rights reserved.Group Mission is to Lead and Enable Intelligent TransformationImprove net income margin in the medium-term;Leverage Digital T

47、ransformation to drive secular growthStrategically positioned for Hybrid AI revolution with products and services from device to edge to cloudConfident of continued growth momentum across all three business groups with improved profitabilityStrategic partnership with Alat further enhance our balance

48、 sheet and support future growthSupplemental Financial Materials222025 Lenovo Internal.All rights reserved.-Financial Summary-Condensed Consolidated Income Statement-Condensed Consolidated Balance Sheet-Condensed Consolidated Cash Flow Statement-Supplemental Non-HKFRS Measures2022 Lenovo Internal.Al

49、l rights reserved.Financial Summary23US$Million Q3 23/24Q3 24/25Y/Y%Revenue 15,721 18,79620%Gross profit 2,601 2,95914%Operating expenses(1,988)(2,271)14%Operating profit 613 68812%Operating profit(non-HKFRS)630 70812%Other non-operating income/(expenses)-net(142)(171)20%Profit before taxation 471 5

50、1710%Profit before taxation(non-HKFRS)489 53910%Taxation(94)184-295%Profit for the period377 70186%Profit for the period(non-HKFRS)390 44514%Profit attributable toOther non-controlling interests40 8-80%Equity holders of the Company337 693106%Equity holders of the Company(non-HKFRS)357 43020%EPS(US c

51、ents)Basic 2.81 5.66101%Diluted2.64 5.35103%Q3 23/24Q3 24/25Gross margin16.5%15.7%Operating margin3.9%3.7%E/R ratio12.6%12.1%PTI margin3.0%2.8%Net margin2.1%3.7%Condensed Consolidated Income Statement24US$MillionQ3 23/24Q3 24/25Revenue15,721 18,796Cost of sales(13,120)(15,837)Gross profit2,601 2,959

52、Selling and distribution expenses(869)(954)Administrative expenses(591)(710)Research and development expenses(547)(621)Other operating income/(expenses)net19 14Operating profit613 688Finance income35 27Finance costs(174)(193)Share of losses of associates and joint venture(3)(5)Profit before taxation

53、(PTI)471 517Taxation(94)184Profit for the period377 701Profit attributable toOther non-controlling interests40 8Equity holders of the Company337 693Per share dataEarnings per share(US cents)Basic2.815.66Earnings per share(US cents)Diluted2.645.352025 Lenovo Internal.All rights reserved.Condensed Con

54、solidated Balance Sheet252025 Lenovo Internal.All rights reserved.US$MillionAs of Dec 31,2023As of Dec 31,2024Current assets23,22828,575Bank deposits and cash3,5334,071Trade,notes and other receivables13,08814,542Inventories6,2199,148Others388814Non-current assets16,27616,147Property,plant and equip

55、ment2,0092,002Intangible assets8,5198,026Others5,7486,119Current liabilities26,70132,904Borrowings571,057Trade,notes,other payables,accruals and provisions24,53429,431Deferred revenue1,5831,605Others527811Non-current liabilities6,6905,677Borrowings3,5642,621Deferred revenue1,4431,545Others1,6831,511

56、Total equity6,1136,14126US$MillionQ3 23/24Q3 24/25Net cash generated from operating activities364344Net cash used in investing activities(364)(335)Net cash used in financing activities(324)(99)Decrease in cash and cash equivalents(324)(90)Effect of foreign exchange rate changes53(155)Cash and cash e

57、quivalents at the beginning of the period3,737 4,179Cash and cash equivalents at the end of the period3,466 3,9342025 Lenovo Internal.All rights reserved.Condensed Consolidated Cash Flow StatementSupplemental Non-HKFRS Measures2025 Lenovo Internal.All rights reserved.27 US$Million Q3 23/24Q3 24/25Op

58、erating profitProfit before taxationProfit for the periodProfit attributable to equity holdersOperating profitProfit before taxationProfit for the periodProfit attributable to equity holdersAs reported613 471 377337688517701693Non-HKFRS adjustmentsNet fair value changes on financial assets at fair value through profit or loss(25)(25)(21)(14)(32)(32)(24)(31)Amortization of intangible assets resulting from mergers and acquisitions424334 34 28302626Impairment and write-off of intangible assets-24242424One-time income tax credit-(282)(282)Non-HKFRS630 489 390 357 708539445430