Lenovo Groep: resultaten eerste kwartaal 2022/​23

Lenovo Group heeft vandaag sterke resul­taten voor het eerste kwartaal van de Groep bekend­ge­maakt, waarbij zowel de inkomsten als de winst­ge­vend­heid voor het negende achter­een­vol­gende kwartaal zijn verbeterd. De netto-inkomsten over het eerste kwartaal stegen met 11% j‑o-j tot US$516 miljoen en met 35% jaar-op-jaar tot $556 miljoen op een niet-HKFRS [1] basis. De omzet steeg tot US$17 miljard, een stijging met 5% jaar-op-jaar bij constante valuta. 

De Groep zag de inkomsten uit niet-PC-acti­vi­teiten oplopen tot 37%, wat aantoont dat de trans­for­ma­tie­stra­tegie die gericht is op diensten en de aanhou­dende inves­te­ringen in de diver­si­fi­catie van de acti­vi­teiten hun vruchten hebben afge­worpen en toekom­stige groei­mo­ge­lijk­heden bevor­deren. Deze nieuwe groei­mo­toren van oplos­singen en diensten, infra­struc­tuur­op­los­singen en mobiele acti­vi­teiten hebben allemaal hun inkomsten jaar-op-jaar met dubbele cijfers zien stijgen – wat bijdraagt tot zowel de groei van de omzet als Lenovo’s bredere verbin­tenis om de winst­ge­vend­heid op middel­lange termijn te verdub­belen. De Groep blijft zich inzetten voor een verdub­be­ling van de inves­te­ringen in onderzoek en ontwik­ke­ling (O&O) en verhoogde de O&O‑uitgaven met 10% jaar-op-jaar en het aantal O&O‑personeelsleden met 29% jaar-op-jaar.

Lenovo continues to seize the oppor­tu­ni­ties driven by acce­le­rated digital/​intelligent trans­for­ma­tion and hybrid working, while succes­sfully navi­ga­ting a range of industry-wide chal­lenges. Overall, the Group remains opti­mistic about the long-term industry growth potential and the oppor­tu­ni­ties afforded by its invest­ments in new growth engines. It is confident that by leve­r­a­ging its strategy and execution together with its core compe­ten­cies of inno­va­tion, opera­ti­onal excel­lence, and global/​local operating model, it has the agility and resi­lience to navigate any macro or micro chal­lenges successfully.

Financial Highlights: 

	Q1 22/​23US$ millions	Q1 21/​22US$ millions	Change
Group Revenue	16,956	16,929	0.2%
Pre-tax income	691	650	6%
Net Income (profit attri­bu­table to equity holders)	516	466	11%
Net Income (profit attri­bu­table to equity holder – non-HKFRS) [1]	556	413	35%
Basic earnings per share (US cents)	4.39	4.02	0.37

Chairman and CEO Yuanqing Yang: “We succes­sfully grew our business and improved profi­ta­bi­lity for the ninth conse­cu­tive quarter, while our revenue mix from non-PC busi­nesses reached 37%. These are the results of our strategic foresight and strong execution, together with our opera­ti­onal resi­lience.” said Yuanqing Yang, Lenovo Chairman and CEO. “Although external chal­lenges may persist in the short-term, the digi­ta­li­za­tion trend continues to acce­le­rate, and the hybrid work model is here to stay. We have confi­dence in capturing these oppor­tu­ni­ties and will continue to invest, innovate, and deliver sustai­nable growth and profi­ta­bi­lity improvements.”

Solutions and Services Group (SSG): delivering strong growth and high margins – driving higher overall profitability for the Group

Oppor­tu­nity:

The trillion-dollar IT services market continues to see strong growth, and the growth of hybrid working is driving higher demand for premier and customer fulfil­ment services. Equally the expansion of digital workplace solutions has driven demand for as-a-Service for devices, infra­struc­ture, and workplace mana­ge­ment. While at the same time the market for vertical solutions including smart city, smart manu­fac­tu­ring, smart education, and smart retail is expected to grow at double-digit CAGR through 2025. 

Q1 FY22/​23 performance:

• In the last quarter SSG delivered high profi­ta­bi­lity and high growth, with revenue growing 23% year on year. Operating margin remained high at almost 23%.
• There was strong double-digit revenue growth across all segments, with revenue from non-hardware dependent managed services and project and solutions services now accoun­ting for almost half of SSG’s business.

Sustai­nable Growth:

• SSG continues to invest in software tools, platforms, and repe­a­table vertical solutions with Lenovo’s own IP, including the continued expansion of the TruScale as-a-Service portfolio to the broader digital workplace solutions market.
• SSG launched hybrid/​multi cloud solutions and continues to develop its portfolio of sustai­na­bi­lity offerings. 
• The strategic part­ner­ship with PCCW Solutions, announced in June 2022, will further expand SSG’s footprint and oppor­tu­ni­ties to build a tech­no­logy solutions business across Asia Pacific.

Infrastructure Solutions Group (ISG): FY21/​22 record revenue and profitable growth continues in new fiscal year

Oppor­tu­nity:

ISG continued to benefit from strong ICT infra­struc­ture market growth. The server market alone is expected to grow at double-digit CAGR through 2025. The Edge infra­struc­ture market will exceed US$41 billion by 2025, and storage market will reach US$36 billion within the same timeframe. 

Q1 FY22/​23 performance:

• ISG revenue exceeded US$2 billion for the first time, up 14% year on year and now profi­table for three conse­cu­tive quarters. 
• The Cloud Service Provider segment, as well as server and storage reached all-time revenue records and all signi­fi­cantly outgrew the market.  
• Revenue from Edge Computing almost doubled year on year, and in High Perfor­mance Computing the ISG business main­tained its #1 leader­ship position on the Top500 list by adding more Lenovo systems utilizing its unique Neptune liquid cooling technology. 

Sustai­nable Growth:

• ISG continues to invest in a compre­hen­sive portfolio and in inno­va­tion, parti­cu­larly in Edge, Cloud, and Services. 
• ISG will continue to balance scale and profi­ta­bi­lity as it focuses on being one of the fastest growing end-to-end infra­struc­ture providers. 

Intelligent Devices Group (IDG): market leader driving innovation and diversification

Oppor­tu­nity:

While the PC market is currently expe­rien­cing short-term chal­lenges, PCs are still recog­nized as a necessity and key produc­ti­vity tool. The total available market for PCs is expected to remain higher than pre-pandemic levels in the long term. Alongside PCs, the scenario-based solutions market is growing fast, with the smart colla­bo­ra­tion market expected to surpass US$80 billion by 2025.

Q1 FY22/​23 performance:

• IDG main­tained industry-leading profi­ta­bi­lity, with operating profit of over US$1 billion, outgro­wing the market to not only retain but also streng­then its global position as the world’s #1 PC company. This success was driven by strong growth in premium segments such as gaming and workstations. 
• Smartphone revenue increased by more than 20% year on year, with growth coming not only from the tradi­ti­onal strong­hold markets of Latin America and North America, but also expansion markets of Europe and Asia Pacific. 
• Expansion beyond PCs continues, with 22% of IDG revenue coming from non-PC smart devices, embedded computing/​IoT, and scenario-based solutions such as smart home and smart collaboration. 

Sustai­nable Growth:

• Lenovo continues to focus on inno­va­tion across its portfolio – from smart devices to smart colla­bo­ra­tion, and ulti­ma­tely to smart spaces. 
• The focus for smart devices is around inno­va­tive form factors, extreme perfor­mance, adaptive intel­li­gence, and security. For digital workspaces the focus is on seamless connec­tion and inte­gra­tion, allowing for the best possible mix of physical and virtual collaboration. 

Operational highlights and investing for the future

Corporate Invest­ment – Lenovo recently completed an inaugural offering of green notes as part of a US$1.25 billion dual-trance Rule 144A/​Regulation S bond offering. The offering is the largest debut tech­no­logy sector Envi­ron­mental, Social, and Gover­nance (“ESG”) bond globally so far in 2022[2], and marks an important milestone in Lenovo’s ESG journey and supports its vision to achieve Net-Zero by 2050. This is a key devel­op­ment as the Company continues to drive its inte­grated climate and sustai­na­bi­lity objec­tives and ambitions, enabling the company to finance projects and initi­a­tives that support its ESG commit­ments, and build a smarter and more sustai­nable future for all. More infor­ma­tion can be found in the Group’s Green Finance Framework. 

Global Supply Chain – In June 2022 Lenovo offi­ci­ally opened the doors to its first in-house manu­fac­tu­ring facility in Europe. Based in Ullo, Hungary, the factory focuses primarily on building server infra­struc­ture, storage systems and high-end PC work­sta­tions used by customers throug­hout the Europe, Middle East, and Africa region, and further extends Lenovo’s global manu­fac­tu­ring footprint. 

The annual Gartner Global Supply Chain Top 25 listing for 2022 saw Lenovo reach its highest ranking ever, up seven places from 2021 to rank #9. The Gartner Supply Chain Top 25 iden­ti­fies, cele­brates, and profiles companies that demon­strate excel­lence in supply chain mana­ge­ment amid high-risk supply chain disruption.