A $20B+ global personal technology company
Transcript of A $20B+ global personal technology company
2 ••© 2011 Lenovo Confidential. All rights reserved.
A $20B+ global personal
technology company
with 30,000 people and
customers in 160+ countries.
Lenovo is…
3 ••© 2011 Lenovo Confidential. All rights reserved.
Expanded Presence in Global Markets
Worldwide PC Market Share
Emerging Markets Lead over HP has grown to 6pts in last 3 Quarters
Worldwide Commercial Reached 18.4% share, overtaking HP
Consumer Desktop Passed HP to take over #1
#2
#1
#1
#1
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Fastest growing for 9th straight quarter
Record highs in market share, shipments, revenue and PTI
Closing gap with #1 position to just 2 points
Lenovo #2 in the world, closing gap on #1 position
Source: IDC and Internal Data
8.4
10.2 10.4 10.2 9.9
12.2
13.5 14.0
37%
0%
-2
0
2
4
6
8
10
12
14
16
-10
0
10
20
30
40
50
60
70
Q4 09/10 Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11 Q1 11/12 Q2 11/12 Q3 11/12
13
55
77
100
42
109
144 153
0
20
40
60
80
100
120
140
160
180
200
Q4 09/10
Q1 10/11
Q2 10/11
Q3 10/11
Q4 10/11
Q1 11/12
Q2 11/12
Q3 11/12
Lenovo Net Earnings (US$M) Lenovo WW Market Share and PC
Shipment YTY Growth (%)
Market
Lenovo Closes Gap on WW Market Share (%)
0
5
10
15
20
Q4 09/10 Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11 Q1 11/12 Q2 11/12 Q3 11/12
ASUS
2.2 pts
10.4 pts
What contributed to Lenovo’s
continuous solid growth?
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Extended lead vs. competitors in world‟s largest PC market
Achieved record market share of 35.3%
Improved PC operating profit by 57% YTY
Protect China Leadership
0
10
20
30
40
50
60
70
Q4 09/10 Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11 Q1 11/12 Q2 11/12 Q3 11/12
Market
Lenovo China Shipment YTY Growth (%)
28%
17%
Source: IDC and Internal Data
0
50
100
150
200
Q3 10/11 Q4 10/11 Q1 11/12 Q2 11/12 Q3 11/12
China PC Segment Operating Profit (US$M)
103 112
164
176
166
5.3%
5.7%
9.4%
9.5%
35.3%
0% 10% 20% 30% 40%
HP
Asus
Dell
Acer*
Lenovo
Lenovo vs. Top Competitors, Q3 Share (%)
*Includes Founder
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20
37 39 39
76
95
109
0
20
40
60
80
100
120
Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11 Q1 11/12 Q2 11/12 Q3 11/12
More than doubled operating profit YTY
Record high market share of 9.4%, up 4.2 points YTY
Successful integrations of NEC and Medion
Mature Markets: Protect Relationship / Attack Transactional
Source: IDC and Internal Data
MM Segment Operating Profit (US$M)
+17.0
+2.5
+3.8
-0.2
7.5%
8.5%
24.1%
8.2%
9.4%
NA
WE
Japan
ANZ
Mature
Mature Market Geo Share/YTY Growth (%)
+4.2
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Grew more than 5x the market
Share outside China grew 1.2 points YTY
Strengthened #1 position in Global Emerging Markets
Gained 3.4 points in India, 1 point in Russia
Attack Emerging Markets
Source: IDC and Internal Data
0
25
50
Q3 10/11 Q4 10/11 Q1 11/12 Q2 11/12 Q3 11/12
Lenovo EM Shipment YTY Growth (%) Lenovo Share Gains in All EM Regions
+1.2
+1.4
+1.5
+2.2
+1.7
Q3 Shares (%) Share Gains YTY (pts)
+3.4
7.8%
9.9%
5.7%
7.7%
13.7%
8.3%
6.8%
4.5%
7.9%
EM
RUCIS
MEA
LAS
India
HTK
EET
Brazil
ASEAN +0.4
- 1.0
+0.9
23%
4% Market
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Execution of Strategy Continues to Drive Growth
What are Lenovo’s next steps?
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Technology Revolution Drives Up Convergence
WiFi/ 3G/ 4G
SoC
Touch Panel
HTML 5
Tablet Ultrabook
Traditional TV
Personal Computer
Feature Phone
Smartphone Smart TV
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Our Beliefs in the Convergence Era
HW Cloud
Soft ware
Smart devices to offer the best
user experience, integrating HW,
SW & cloud service
One customer,
multiple
smart devices
12
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End users will…
Select suitable gear based on environment and purpose
Demand almost the same contents from each gear
Expect comparable experiences with different interface/performance
Desire continuous workflow and gapless transition between devices
6 AM 9 AM 5 PM 7 PM
Study or office Living room Bus Bus
9 PM
Bedroom Sleeping
Smart Services push/download,
backup/sync, security scan
Opportunities and Challenges Created by the Coexistence of Smart Devices
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Lenovo Four Screen Strategy
SUB POINT
PC
TABLETS
SMARTPHONES
LENOVO
CLOUD
Drive Monetizaton Utilizing the Cloud to create
new forms of “monetization”
TV
Deploy Cross All Plattforms „One Lenovo Cloud‟ deployed across all platforms:
乐云 (Lenovo Cloud)
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乐云 (Lenovo Cloud)
乐Pad 乐Phone
Cloud Ready PC 乐TV
乐终端
乐Magic
Optimized UE, integrated core apps
OS
Compatibility with mainstream OS
8
H/W
Products cover all market segments
Lenovo Store
Content mgmt Interconnectivity Social sharing
Lenovo Personal Cloud Platform
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Smartphone sales grew over 400% QTQ in China, double-digit share
in December.
Tablets: Dominating Android-based player in China
− 51.9% Android-based market share; 16.5% overall, strong #2 in China
Smart TV leads slate of new, innovative products coming to market
Solid MIDH Roll Out in China
A60 IdeaTablet S2110A Smart TV IdeaPad Yoga
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Innovations Bring Opportunities
IdeaCentre A720 IdeaPad YOGA
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Lenovo won 23 awards, more than next 5 competitors combined
CES Success Demonstrates Lenovo’s Innovation Capability
Lenovo beats Apple to
unveil smart television
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New Ideas and New Products Yield New Opportunities
Core Business
New Acquisitions & JVs
New Technologies
New Usage Models
New Ecosystems
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Lenovo: Next Gen Global Tech Co
Next
Generation
Global
Technology
Company
Core PC
China
- Extend PC share lead
- Increase profitability
- Grow Server &
Workstation
Mature Market
- Unique commercial
exposure
- Expand consumer
business presence
Emerging Market
- Get 10%+ share in key
countries
- Expand profitability
Four-screen Strategy
MIDH
Lenovo Cloud
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23 ••© 2011 Lenovo Confidential. All rights reserved.
About LENOVO
Incorporated in Hong Kong in 1988
Listed on The Stock Exchange of Hong Kong since February 1994 (HKSE: 992)
Issued Level I American Depositary Receipts (ADRs) in March 1995 (ADR: LNVGY)
The world‟s 2th largest PC vendor with customers in over 160 countries
Fortune Global 500 company
Product lines include legendary Think-branded commercial PCs and Idea-branded consumer PCs, servers,
workstations, and a family of mobile internet devices, including smartphones, tablets, Smart TV, etc.
Major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina, US.