HP Annual Report 2003 | Quarterlytics

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FY2003 Annual Report · HP

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Unlike any other.

HP Annual Report 2003

5982-3025EN 01/2004

Committees of the board

Audit Committee:
Dunn (Chair), Babbio, Keyworth, Knowling, Litvack

HR and Compensation Committee:
Condit (Chair), Ginn, Perkins, Salhany

Finance and Investment Committee:
Babbio (Chair), Dunn, Knowling, Litvack

Nominating and Governance Committee:
Ginn (Chair), Condit, Salhany

Technology Committee:
Perkins (Chair), Babbio, Hackborn, Keyworth

Executive Officers

Carleton S. Fiorina
Chairman and Chief Executive Officer

Robert P. Wayman
Executive Vice President
Chief Financial Officer

Ann O. Baskins
Senior Vice President
General Counsel and Secretary

Peter Blackmore
Executive Vice President
Enterprise Systems Group

Gilles Bouchard
Executive Vice President
Chief Information Officer

Charles N. Charnas*
Vice President
Deputy General Counsel and Assistant Secretary

Debra L. Dunn
Senior Vice President
Corporate Affairs

Jon E. Flaxman
Senior Vice President
Controller

Allison Johnson
Senior Vice President
Global Brand and Communications

Vyomesh Joshi
Executive Vice President
Imaging and Printing Group

Richard H. Lampman
Senior Vice President
Director of HP Labs

Catherine A. Lesjak
Senior Vice President
Treasurer

Ann M. Livermore
Executive Vice President
HP Services

Stephen J. Pavlovich
Vice President
Investor Relations

Marcela Perez de Alonso
Executive Vice President
Human Resources and Workforce Development

Shane V. Robison
Executive Vice President
Chief Strategy and Technology Officer

Michael J. Winkler
Executive Vice President
Chief Marketing Officer

Duane E. Zitzner
Executive Vice President
Personal Systems Group

* Non–Section 16 board-elected officer.

All other officers above are executive officers of HP
under Section 16 of the Securities Exchange Act of
1934, as amended.

Shareowner information
The annual meeting will be held at the time and place
indicated in HP’s proxy statement for the 2004 annual
meeting of shareowners.

Investor information
Current and prospective HP investors can access
financial information on the web at:
http://www.hp.com/hpinfo/investor. Requests to
receive the latest annual report, proxy statement,
10 -K, 10 -Qs, earnings announcements and other
publications at no cost can be made by calling
(866) 438-4771 in the United States and Canada
or (402) 572-4975 for international callers, or by
ordering online: http://investor.hp.com/docreq.cfm.

Transfer agent and registrar; dividend
reinvestment program
Please contact HP’s transfer agent, at the phone number
or address listed below, with questions concerning stock
certificates, dividend checks, transfer of ownership or
other matters pertaining to your stock account.

Computershare Investor Services
Shareholder Services
Post Office Box A3504
Chicago, Illinois 60690-3504
1-800-286-5977 (from the U.S.)
(312) 360-5138 (outside the U.S.)

A dividend reinvestment and stock purchase program is
also available through Computershare. For information
on this program, please contact Computershare at the
following address or the phone number listed above:

Computershare Trust Company
Dividend Reinvestment Services
Post Office Box A3309
Chicago, Illinois 60690-3504

Common stock and dividends
Hewlett-Packard Company is listed on the New York
and Pacific stock exchanges, with the ticker symbol HPQ.
HP has paid cash dividends each year since 1965.
The current rate is $0.08 per share per quarter. As of
October 31, 2003, there were approximately 154,800
shareowners of record.

Corporate information

Headquarters
3000 Hanover Street
Palo Alto, California 94304-1112
Telephone: (650) 857-1501

Regional headquarters
Americas
20555 SH 249
Houston, Texas 77070
Telephone: (281) 370-0670

Europe, Africa, Middle East
Route du Nant-d’Avril 150
CH-1217 Meyrin 2
Geneva, Switzerland
Telephone: (4122) 780-8111

Asia Pacific
19/F Cityplaza One
1111 King’s Road
Taikoo Shing, Hong Kong
Telephone: (852) 2599-7777

This document is printed on 10 percent post-consumer
recycled paper, which was manufactured using an
elemental, chlorine-free process and conforms to
the criteria of the Sustainable Forestry Initiative (SFI).
In addition, the printing company selected by HP for
this report uses printing technologies that have been
specially designed to minimize emissions.

www.hp.com

© 2004 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change
without notice. The only warranties for HP products and
services are set forth in the express warranty statements
accompanying such products and services. Nothing
herein should be construed as constituting an additional
warranty. HP shall not be liable for technical or editorial
errors or omissions contained herein. Windows® is a
registered trademark of Microsoft Corporation. UNIX®
is a registered trademark of The Open Group.

What makes
this company unique?
Our character.
Our capabilities.
Our choices.
Our unmatched
depth and breadth.
And our single -minded
goal of becoming
the world’s leading
technology company.

Dear Fellow Shareowners,

For all the remarkable advancements we
have seen in recent years, nothing has
matched the power of information tech-
nology to change our world. In the next
decade, it will take us to places we can’t
even imagine today. Through all that change,
there is only one company that has taken
a leadership role in applying technology
at work, at home and at play: HP.

We are a company unlike any other. It’s a
fact underscored by our leadership across
consumer, small and medium-size business
and enterprise customer categories; by our
presence and leadership in key regions
around the world; and by our uniquely rich
technology portfolio. As proud as we are
of our capabilities, we are equally proud
of those things that define our character:
the dedication of our people, our standards
and values, and the reach and depth of
our commitment to global citizenship.

For the shareowners, customers and
employees of HP, fiscal year 2003 was
a remarkable year in many respects. It was
a year in which we began to apply the
power of our portfolio, our size and scale
and our global presence to serve customers
better and to redefine markets. It was a
year in which HP employees around the
world continued to hold themselves to the
highest standards while executing our
business strategies.

Our financial performance
Not only did we successfully achieve the
largest merger integration in the history
of our industry, we also fulfilled our promise
and returned all of our major business
segments to profitability in the fourth
quarter, with leadership across key market
categories, and record, full-year operating
cash flows. HP’s strong fourth-quarter
performance capped a fiscal year in
which we delivered on our commitments:

We set unit-shipment records across key
categories including printers, ProLiant servers,
Superdome servers, notebooks and handhelds.

We grew revenue and market share
across key categories and geographies.

We attained $3.5 billion in merger integration
and cost savings, exceeding our goal by
$1 billion—one year ahead of original schedule.

We returned each of our major business
segments to profitability in the fourth quarter.

We delivered 47 percent earnings-per-share
improvement on a non-GAAP,1 full-year,
combined-company 2 basis.

We generated more than $6 billion in cash flow
from operations, ending the year with a gross
cash and investments3 balance of $14.7 billion.

1 Non-GAAP financial information is reconciled
to GAAP financial information on page 18.

2 As defined on page 17.
3 As defined on page 8.

Revenue overview by business segment 1

in billions, for fiscal year 2003

Personal Systems Group

Imaging & Printing Group

Enterprise Systems Group

HP Services

HP Financial Services

Corporate Investments

Revenue overview by region

in billions, for fiscal year 2003

Americas (excluding U.S.)

Europe, Middle East, Africa

United States

Asia Pacific

Japan

$21.2

$22.6

$15.4

$12.3

$1.9

$0.3

$4.3

$28.5

$29.2

$8.0

$3.1

1 Fiscal year 2003 revenue by business segment is prior to the elimination

of $740 million of intersegment revenue and other. Further, due to
rounding, total revenue by business segment reflected in the table is
$73.7 billion, as compared to $73.8 billion reflected on page 19.

HP had record unit shipments of 43 million printers
in fiscal year 2003—a rate equivalent to shipping
more than one printer per second.

During the year, we strengthened our
core printer franchise with double-digit
revenue growth and continued share
gains across key business categories and
geographies. All of this translated to

a full-year segment operating profit of
$3.6 billion, with quarterly segment
operating profit exceeding $1 billion for
the first time, in the fourth quarter.

Imaging and Printing Group (IPG)

in millions

HP has firmly established itself as a major player in the
managed-services market, with major wins in fiscal year 2003
including a $3B, 10-year contract with Procter & Gamble,
a $600M outsourcing contract with Bank of Ireland and a
€225M strategic outsourcing agreement with Telecom Italia.

HP Services posted strong results in fiscal
year 2003 and continues to provide a
stable annuity revenue and profit stream.
The business generated $1.4 billion in
segment operating profit for the year.

We accelerated momentum in the managed-
services business, with revenue growth of
22 percent on a full-year, combined-company
basis—four times the market growth rate
and faster than our principal competitor.

HP Services (HPS)

in millions

At the end of a transition year, we returned
our enterprise business to profitability and
set record, full-year unit shipments in our
ProLiant and Superdome server lines.

As we committed, we returned the
Enterprise Systems Group to profitability
in the fourth quarter. Segment operating
profit increased $610 million on a full-year,

combined-company basis. During the
year, we strengthened our products and
solutions portfolio and gained or held
share in key categories.

Enterprise Systems Group (ESG)

in millions

In the fourth quarter, HP notebook unit growth
was 61 percent year-over-year—almost twice the
growth rate of the market—while handhelds
grew 117 percent.

We returned the Personal Systems Group
to profitability for the year, with segment
operating profit up $391 million on a full-
year, combined-company basis. We did this

while gaining share and taking over the
No.1 position in notebooks, the fastest-
growing and most profitable category
of the PC market.

Personal Systems Group (PSG)

in millions

During the fiscal year, we generated
$6.1 billion of cash flow from operations.
We closed the year with $14.7 billion
in gross cash and investments after funding
more than $2.6 billion in restructuring

charges, retirement funding and retention
payments, as well as approximately $750
million in stock repurchases. We also
had a dividend payout of $977 million—
among the highest yields in the industry.

Gross cash and investments

in millions

Cash flow from operations

in millions

1 Includes cash and cash equivalents, short-term investments and certain liquid long-term investments of $366, $368, $220

and $85 in the first, second, third and fourth quarters, respectively.

2 Net cash is defined as gross cash and investments less total debt, adjusted for certain hedging and swap activity of $152,

$177, $58 and $65 in the first, second, third and fourth quarters, respectively.

We launched more than 660 new products in fiscal year
2003 and closed the year with 21,000 patents in force
worldwide, up from 17,000 in fiscal year 2002. This
equates to some 11 patents being generated per day,
double the rate of fiscal year 2002.

We accomplished all of this while making
significant investments in our future
competitiveness. For example, we spent
$3.7 billion on R&D, focused in areas
of innovation where we believe we can
make a unique contribution and lead.
HP’s patent -generation rate increased to
11 patents per day worldwide. We invested
more than $1 billion in software across
our portfolio, $600 million in building
the HP brand, $400 million innovating
our internal IT systems and $275 million
in training and developing our people,
and further invested in our direct-sales,
service and support capabilities.

This is a story of performance, but it’s
primarily a story about HP people. Their
commitment and focus reinforced my
belief that when the talent and dedication
of the people of this company are
combined with the hopes and dreams
of our customers, everything is possible.

HP’s vision of the market
In addition to our accomplishments this
past year, HP continues to execute on
a vision we set our sights on several years
ago. As technology moves from the
fringe to the core of people’s lives and

businesses, the need for technology to deliver
more becomes increasingly important.
Customers are no longer willing to choose
between lower price and higher functionality,
or to trade speed and flexibility for quality
and reliability. The days of either/or
solutions are gone. Customers—from the
CEO of a Fortune10 company to the owner
of the local market—want what we at
HP call the power of “and”: affordability
and reliability and security and simplicity
and manageability and adaptability and
innovation and connection.

We have entered an era in which processes
and content are being transformed from static
and analog to digital, mobile and virtual.
Consider a process as simple as photo-
graphy. It used to be that taking a picture
was a physical process—you’d snap a
picture and then transport the film to a store
to get it developed. Today, that process is
becoming increasingly digital and mobile.
For instance, using an HP digital camera,
you can take a picture, remove the memory
card from the camera, insert it into a slot
on a memory card–enabled HP printer
on your desk, select photos on the printer’s
readout display and print.

HP is the No.1 consumer IT company in the world,
the No.1 technology supplier to small and medium-size
businesses and a leader in enterprise computing,
with market -leadership positions in virtually every
technology category and region in which we compete.

In similar ways, music and entertainment
content are being converted to digital
bits that can be created and consumed
in new ways, and this same transformation
is under way in industries from health care
to financial services to communications to
education. The challenges and opportunities
in these industries will be addressed by
the application of a wide range of tech-
nology solutions and services—which HP
is uniquely prepared to supply.

What this comes down to is the need to
make a diverse set of technologies work
better together, to speak a common
language and to network not just devices
but businesses to businesses, employees
to customers and suppliers to customers.
In our industry, “common language” trans-
lates to “standards.” Without standards,
there is no connection between stand-alone
islands of technology. Standards are those
technologies that over time have become
broadly adopted by customers: Windows,®
Linux, IA-32 processors and, increasingly,
IA-64 processors are just a few examples.

HP has been a long-time proponent of open
standards and architectures, and more
and more customers are seeing the value

in this and seeking us as their technology
provider because of it. We target our R&D
investments on areas in which we can make
a unique contribution and lead, and which
also run on top of standard platforms.

In short, the market is moving to industry-
standard computing, to virtual and digital
content, and increasingly toward simplicity,
manageability and adaptability. This
is changing how customers buy and use
technology, and in some cases, how
companies organize.

What does it take to capitalize on these
shifts and serve customers in this new
era? It takes expertise in imaging and
printing. It takes expertise in personal
access devices and storage, in servers and
systems-management software. It takes
global presence and leadership in services.
It takes a company with a long heritage
of leading through IT shifts. It takes a
company with leadership across multiple
markets and regions. It takes the dedication
and focus of employees around the world.
In short, it takes HP.

A unique strategy
HP’s depth and breadth are a result of
deliberate choices. As we have noted for
several years now, technology markets
are consolidating, with the No.1 and

The HP corporate strategy
Our strategy is to offer products, services and solutions that are high tech and low cost
and deliver the best customer experience. No other company has the portfolio, people
and expertise to deliver on all three.

High tech

Low cost

Customer

Best customer experience

Low cost
HP’s size and scale allow
us to offer customers not
only competitively priced
products, but also a lower
total cost of ownership over
a solution’s lifecycle. Our
$52 billion supply chain—
the largest in the technology
industry—allows us to
achieve world-class cost
structures and to pass
savings on to customers.

High tech
HP has been a leading
innovator for nearly seven
decades. We invest almost
$4 billion annually on
R&D where we believe
we can make a unique
contribution and lead, and
we partner for the rest—
leveraging $10 billion-
plus of our partners’ R&D
investments. We are proud
of the fact that we have now
achieved the fastest rate of
innovation in our company’s
history as measured by our
output of new patents and
new products.

Best customer experience
Because we have a unique
view into a wide range
of customers, we’re in a
great position to deeply
understand their needs and
then mobilize our resources
to develop technologies,
solutions and services to
deliver a uniquely reward-
ing experience. We’re
focused on improving how
we interact with customers
at every touch point—
from how they learn about
HP and purchase our
products, services and
solutions to how they use
and manage them.

No. 2 players being best positioned for
sustainable market-share growth and
profitability. Recognizing this shift inspired
us to get ahead of the trend and actually
drive that consolidation with our merger
in 2002. Making the necessary changes
to remain a market leader is hard —
but not making them is even harder. In
response to customer needs and changing
market conditions, we have built a portfolio
that delivers a combination of reliable
innovation at a price our customers can
afford, with an experience that sets us
apart. We call it “high tech, low cost,
best customer experience.”

This is a strategy that draws on our belief
that invention is the soul of innovation,
and that only those companies that make
R&D a priority today will continue to lead
markets tomorrow. It draws on our belief
that technology should be affordable,
intuitive and available to everyone and
should deliver the highest possible value
for the money. It draws on our belief that

how we do things is as important as what
we do. Whether it’s using our products,
getting information from the website, calling
our support lines for help or engaging with
our consultants and engineers on a major
IT consolidation project, that experience
should be outstanding.

No other company in our industry can
deliver this value proposition to consumers
and small and medium-size businesses
and large enterprises and governments,
all over the world. No other company
can offer everything from handheld PCs
to printers to advanced utility data centers.
This gives us a unique ability to stay ahead
of the market and a distinct competitive
advantage: Our competitors cannot match
our size and scale or our ability to leverage
our experience from one sector to the next.

Leadership across the board

C AT E G O RY

S H A R E

P O S I T I O N

LaserJet printers

Disk storage systems

Inkjet printers

UNIX® servers1

Windows® servers

52.0% 1

50.7% 1

41.2% 1

33.8% 1

33.2% 1

Storage -area network systems

31.4% 1

Linux servers1

Handhelds

28.1% 1

25.9% 2

External RAID2 storage systems1 20.1% 2

Notebook PCs

Desktop PCs

16.9% 1

16.1% 2

The power of the portfolio
The fact that we provide such a range
of technologies is beginning to attract
customers who are increasingly looking
for a partner that can provide end-to-end
solutions, with technology capabilities
influenced by and reaching into both
commercial and consumer markets.
After all, every small and medium-size
business customer is also a consumer;
every enterprise customer is responsible
for supplying individual employees
with technology, as well as building out
data centers.

By hosting all of this customer insight and
technology expertise under one roof, we
are able to leverage innovation across our
various business segments. Shareowners
reap the rewards when new applications
of an innovative technology give birth to
high-growth and profitable markets. For
example, our leadership in digital printing
for consumers is helping us aggressively
target enterprise-wide digital publishing.

1 Factory revenue
2 Redundant Array of Independent Disks

All percentages are units unless otherwise stated.

Source: IDC 3Q 2003

HP is a leading technology company in some of
the world’s fastest-growing IT markets, including
Russia, China, India, Brazil, Mexico, Eastern Europe
and the Middle East.

Ensuring growth in the future
Our broad global presence gives us
the opportunity to capitalize on our deep
understanding of the technology shifts
occurring in the world. How do we ensure
we are doing everything we can to
consistently deliver customer and share-
owner value, and stay competitive not just
today, but into the future, in emerging
markets worldwide?

If we are going to continue to grow and
lead in the next decade and beyond,
we must acknowledge that many ideas,
employees, products and markets will
come from the majority of the world that
cannot currently afford IT products. If we
develop even a small portion of this
potential market, the rewards will be great.
It follows that HP is taking an active role
in developing both capacity and new
markets around the world. That is why
we are the leading technology company
in some of the world’s fastest-growing IT
markets. We are facing an unprecedented
opportunity to tap new markets in a way
that’s beneficial for our business, while

demonstrating good global citizenship—
to do well by doing good—a hallmark
of this corporation for nearly 70 years.

On a macro level, we actively engage
with other multinational corporations,
non-governmental organizations (NGOs)
and world governing bodies to reignite
competitiveness at home and abroad
through policy and strategy that support
a free-market economy. This is not only
essential to maintaining HP’s competi-
tiveness, it is critical to fostering human
rights in countries that do not have open
economies or a democratic society. In
many cases, information and communi-
cations technology (ICT) opens the door
to sustainable growth in areas where it
would not have been otherwise possible.
We continue to participate in—and in
some cases lead—efforts in the United
Nations ICT task force and the World
Economic Forum, to bring business
insight and a legacy of corporate social
responsibility to their initiatives.

Frankly, however, it’s at the local level
that our engagement model is most
satisfying. Governments are recognizing
that in an Information Age, an educated
populace is the key to growing new
markets and competing in a global
economy. In partnership with local
governments, NGOs and other private
companies, HP is taking an active role
to encourage development while working
to close the gap between technology-
empowered and technology-excluded
communities, through a model of engage-
ment we call the “i-community.” What’s
perhaps most important and unique
about i-communities is our commitment
to them as a model of growth and market
development: their focus on sustainability
and replicability, and their foundation
of collaboration, responsible engage-
ment, relevant technology solutions and
innovation for unexplored markets.

A company unlike any other
HP is not like any other company—nor do
we aspire to be. We are unique because
of the choices we have made, the portfolio
we have built and the character that
defines us. We are unique because of how
we leverage our size and scale to serve
a broad spectrum of customers. We are
unique because we play a role in the world
that shapes the technology landscape
through our ability to give rise to innovation
and entirely new markets. We are unique
in our value proposition to customers and
in our commitment to corporate social
responsibility. Most of all, we are unique
in our outlook: In an era when information
technology is taking us to places we never
even imagined, we truly believe that the
combination of HP people and technology,
and the ambitions of our customers and
partners, make more things more possible.

This is a company that knows how to
make the tough decisions and necessary
investments to stay competitive. We have
stayed on course and delivered on what

we promised two years ago in terms of
market-share measures and cost efficiencies.
Clearly, that which is unique about HP
serves our shareowners and customers well
today—and positions us to take advantage
of opportunities in the future.

We enter 2004 with an unprecedented
leadership opportunity before us and
a clear intent to capitalize on what sets
us apart, to the benefit of our customers,
our shareowners and our employees.

Thank you for your continued support of HP.

Sincerely,

Carleton S. Fiorina
Chairman and Chief Executive Officer

Hewlett-Packard Company and Subsidiaries GAAP Consolidated Condensed Statement of Earnings

Unaudited
In millions, except per-share amounts

Net revenue:

Costs and expenses:
Cost of salesc
Research and development
Selling, general and administrative
Restructuring charges
Amortization of goodwill and purchased intangible assets
Acquisition-related charges
In-process research and development

Total costs and expenses

Earnings (loss) from operations

Interest and other, net
Losses on investments and other, net

Earnings (loss) before taxes

Provision for (benefit from) taxes

Net earnings (loss)

Net earnings (loss) per share:

Basic
Diluted

Cash dividends declared per share

Weighted-average shares used to compute net earnings per share:

Basic
Diluted

Twelve months ended October 31,
2002 a,b
(Combined Company)

2003

$ 73,061

$ 72,346

53,857
3,652
11,012
800
563
280
1

54,311
3,953
11,091
1,780
664
772
793

$ 70,165

$ 73,364

2,896

(1,018)

21
(29)

2,888

349

$ 2,539

$
$

0.83
0.83

0.32

3,047
3,063

20
(56)

(1,054)

(126)

(928)

(0.31)
(0.31)

0.32

3,031
3,031

$
$

Certain reclassifications have been made to prior-period amounts in order to conform to the current-year presentation.

The combined company results for the 12 months ended October 31, 2002 include the results of Compaq as if the merger had taken place
as of the beginning of the period presented. Due to different fiscal period ends for HP and Compaq, the results for the 12 months ended
October 31, 2002 combine the results of HP for the 12 months ended October 31, 2002 and the historical quarterly results of Compaq
for the six-month period ended March 31, 2002 and for the period May 3, 2002 (the acquisition date) to October 31, 2002.

Cost of products, cost of services and financing interest

Hewlett-Packard Company and Subsidiaries Non-GAAP Consolidated Condensed Statement of Earnings

Excluding adjustments itemized below
Unaudited. In millions, except per-share amounts

Net revenue:

Costs and expenses:
Cost of salesc
Research and development
Selling, general and administrative

Total costs and expenses

Non-GAAP earnings from operations
Interest and other, net

Non-GAAP earnings before taxes
Provision for taxes

Twelve months ended October 31,
2002 a,b
(Combined Company)

2003

$ 73,061

$ 72,346

53,857
3,652
11,012

68,521

4,540
21

4,561
1,004

54,164
3,953
11,091

69,208

3,138
20

3,158
749

Non-GAAP net earnings

$ 3,557

$ 2,409

Non-GAAP net earnings per share:

Basic
Diluted

Weighted-average shares used to compute non-GAAP
net earnings per share:

Basic
Diluted

An itemized reconciliation between net earnings on a
GAAP basis and non-GAAP basis is as follows:

GAAP net earnings (loss)

Cost of sales:

$
$

1.17
1.16

$
$

0.79
0.79

3,047
3,071

3,031
3,051

$ 2,539

(928)

Acquisition-related inventory write-downs

–

147

Other costs and expenses:

Restructuring charges
Amortization of goodwill and purchased intangible assets
Acquisition-related charges
In-process research and development charges

Total non-GAAP adjustments to earnings from operations

Losses on investments and other, net
Non-recurring income tax benefit
Income tax effect of reconciling items

800
563
280
1

1,644

29
(131)
(524)

1,780
664
772
793

4,156

56
–
(875)

Non-GAAP net earnings

$ 3,557

$ 2,409

Certain reclassifications have been made to prior-period amounts in order to conform to the current-year presentation.

The combined company results for the 12 months ended October 31, 2002 include the results of Compaq as if the merger had taken place as of the beginning
of the period presented. Due to different fiscal period ends for HP and Compaq, the results for the 12 months ended October 31, 2002 combine the results of
HP for the 12 months ended October 31, 2002 and the historical quarterly results of Compaq for the six-month period ended March 31, 2002 and for the period
May 3, 2002 (the acquisition date) to October 31, 2002.

Cost of products, cost of services and financing interest

See page 48 for a discussion of reasons for the use of non-GAAP financial information.

Hewlett-Packard Company and Subsidiaries Segment Information and Selected Balance Sheet Data

Unaudited
In millions

Segment Information

Net revenue:

Imaging and Printing Group
Personal Systems Group
Enterprise Systems Group
HP Services
Financing
Corporate Investments

Total segments

Twelve months ended October 31,
2002 a,b
(Combined Company)

2003

$ 22,623
21,228
15,379
12,305
1,921
345

73,801

$ 20,447
21,895
16,194
12,326
2,088
284

73,234

Eliminations of intersegment net revenue and other

(740)

(888)

Total HP Consolidated

$ 73,061

$ 72,346

Earnings (loss) from operations:
Imaging and Printing Group
Personal Systems Group
Enterprise Systems Group
HP Services
Financing
Corporate Investments

Total segments

Corporate and unallocated costs, non-operating
income and expense and eliminations

3,570
19
(54)
1,372
79
(161)
4,825

$ 3,345
(372)
(664)
1,369
(128)
(232)
3,318

(1,937)

(4,372)

Total HP consolidated earnings (loss) before taxes

2,888

$ (1,054)

Selected Balance Sheet Data

At year-end:

Cash and cash equivalents
Total assets
Working capital
Total debt
Stockholders’ equity
Common shares outstanding

$ 14,188
74,708
14,366
7,574
37,746
3,043

$ 11,192
70,710
11,765
7,828
36,262
3,044

Certain reclassifications have been made to prior-period amounts in order to conform to the current-year presentation.

The combined company results of HP and each of HP’s segments for the 12 months ended October 31, 2002 include the results of
Compaq as if the merger had taken place as of the beginning of the period presented. Due to different fiscal period ends for HP and
Compaq, the results for the 12 months ended October 31, 2002 combine the results of HP for the 12 months ended October 31, 2002
and the historical quarterly results of Compaq for the six-month period ended March 31, 2002 and for the period May 3, 2002
(the acquisition date) to October 31, 2002.

As more

A unique portfolio serving a range of customers
processes become digital, mobile
and virtual, people need easy access
to all types of information, wherever
they happen to be. We’re moving to
a world where people might check
e -mail from a handheld PC, print
digital photos directly from a camera,
hold a virtual business meeting from
a sofa at Starbucks and re -allocate
storage resources in their company’s
data center—all in the same day.

This blurring of distinctions between
work and home is something HP

is particularly suited to address.
We understand the needs of each
audience and provide them with
technology that helps them succeed,
whether they’re at work, in transit or
at home. In addition, HP’s dedication
to using open architectures and
standards, our breadth of industry
and retail partners and our focused
innovation in areas such as mobility,
rich digital media, security and
management software uniquely
position us to deliver information and
services to our customers wherever
they are, whenever they need them.

Serving enterprise customers

In a world where every business decision triggers an IT event,
CIOs must balance traditional IT requirements—managing costs,
mitigating risk, increasing their quality of service—with a new
requirement to improve business agility: Technology must help
businesses adapt. CIOs are looking for a single point of
accountability—an IT partner that will collaborate with them
and leverage their technology investments across their businesses
while providing end-to-end solutions. CEOs know that all parts
of their business have to work better together, and that vertical,
standalone islands of technology result in trapped information
and lost productivity. And both CEOs and CIOs are demanding
a measurable and improving return on their IT investments—
whether hosted in -house or outsourced.

In May 2003, HP launched the Adaptive Enterprise, our vision
and approach to address these needs. Our standards-based
IT framework, the Darwin Reference Architecture, provides a
step-by-step approach to creating a business-process-oriented,
horizontal IT environment that dynamically allocates IT resources
where they’re needed, in real time. Darwin was designed around
principles that make it easy for CIOs to integrate heterogeneous
IT environments to simplify, standardize, modularize and integrate
the components of IT infrastructure into a uniform system that
is easy to manage and modify. Applying the experience of HP
Services and leveraging our full expertise from the Darwin frame-
work to handheld devices, we collaborate with customers
to build a powerful platform for managing change.

HP and Starbucks

HP is delivering adaptive enterprise solutions that help
Starbucks balance tremendous expansion with IT costs, while
also allowing them to enrich what they call “the Starbucks
experience.“ When the company discovered that many of its
30 million customers were seeking Internet access on the go,
it decided to enhance the customer experience by providing
a high-speed Wi-Fi network. To offer this service, Starbucks
partnered with HP and T-Mobile—recognizing our unique
expertise in building IT infrastructures that support mobility
and rich media, and our understanding of how people use
devices such as PCs and handhelds.

HP installed much of the equipment that makes the Wi-Fi
network work and developed free, downloadable software
that allows customers to configure their wireless-enabled
notebooks or handhelds to automatically sense and connect
to the T-Mobile HotSpot network when they enter a Starbucks.
Additionally, HP’s Content Delivery System is helping Starbucks
deliver rich digital content over the Wi-Fi network for its
customers to enjoy while they relax and sip their beverages.
For example, Starbucks recently provided customers with the
opportunity to experience an exclusive interview with pop
musician Sheryl Crow, hear the music that influenced the
singer and download tracks to their mobile devices. While
many customers enjoy the entertainment content, others use
the Wi-Fi network to check e -mail and do business when
they’re away from the office.

Serving small and medium-size businesses

Small and medium-size businesses (SMBs) have told us they’re
not looking for just an easy technology purchase at an affordable
price; they need reliability, ease -of-ownership and a helpful, local
IT partner to provide ongoing support—so they can focus on
their businesses rather than on technology.

In fiscal year 2003, we made a concerted effort to solidify our
offerings, our partner network and R&D capabilities to better
address SMBs’ technology needs. This was encapsulated in our
Smart Office launch in September, a comprehensive and sustained
effort to make the entire technology experience—purchasing,
financing, installing, operations and support—more reliable,
less complicated and more efficient. This $750 million initiative
includes more than 200 products, solutions and services designed
for SMB customers. The HP Smart Office bundles reliable infra-
structure, computing, printing and mobility products and solutions
that work easily together, with helpful financing options and
dedicated service and support, at a price SMBs can afford.

With more than 200,000 sales partners worldwide, HP has the
ability to provide local expertise and customer support. We’re
also training value -added resellers to provide local support
everywhere our customers are located.

HP and Powerski

For Powerski, as for many small and medium-size businesses,
IT is critically important. When the company began engineering
and testing its revolutionary new motorized surfboard, also
known as a jetboard, it turned to HP for powerful workstations
to run Parametric Technology Corporation’s (PTC) suite of
sophisticated CAD software. As the project advanced and
Powerski moved from concept to mass production, PTC devel-
oped more complex software that demanded ever-increasing
computing horsepower. Powerski was pleased to find that as
its needs increased, so too did the capabilities and offerings
of HP’s suite of workstations.

Today, HP Workstation xw8000 models running PTC’s software
allow Powerski to model all of the jetboard’s components,
check for fit and performance, develop assembly details and
evaluate service needs. With the Compaq Evo N800w
Workstation, Powerski’s engineering team can make engine
adjustments on-site and in real time, greatly reducing develop-
ment time. The HP mobile workstations have performed
flawlessly, even in the most demanding conditions on sandy
beaches. Powerski’s IT infrastructure is 100 percent HP, with
HP ProLiant servers enabling the team to collaborate and
connect their notebooks, desktop PCs and workstations across
a variety of business functions, including marketing and
digital content-creation for ads and publicity.

Serving consumers

HP is also the world’s leading consumer IT company. Our products
and solutions can be found in 110,000 retail outlets and in more
than 170 countries, where we reach millions of consumers.

As processes become digital, mobile and virtual, traditional
consumer electronic devices, such as TVs and stereos, are merging
with IT products, including PCs and digital projectors. HP has a
unique opportunity to lead in the growing digital-photography
and digital-entertainment markets.

Complexity is one of consumers’ biggest barriers to using new
technology. With this in mind, in August 2003, HP introduced
more than 100 digital-photography and digital-entertainment
products, including the instantly popular DVD Movie Writer, new
notebook PCs, Media Center PCs, all-in-ones, the industry’s first
consumer 8-ink photo printer and improved digital-photography
software, digital cameras, scanners and supplies. These products
and solutions were designed to work easily together, with the
intent of radically simplifying the customer experience.

HP and Tricia Vance

Tricia records life as she sees it: her friends at the park,
a funny street sign, her parents relaxing in their living room,
a cute boy on the bus. After years of using a traditional
camera and film, Tricia made the transition to digital. She
would rather perfect her composition and subject matter than
fuss with technology. Tricia’s criteria for a new photography
solution: easy-to -use technology and high-quality results.
Now, using a suite of intuitive HP digital-photography products,
she easily clicks, prints and shares her favorite shots.

Like Tricia, people all over the world are choosing HP
digital-photography products and solutions for their simplicity
and quality. Many HP digital cameras feature built-in lighting
technology that automatically corrects light, shade and glare.
Industry-leading HP photo printers have perfected printing of
black-and-white, grayscale and color photos. Sending pictures
to the PC and printer is simple, thanks to HP Instant Share
technology, which lets people choose photos for automatic
e -mailing, printing and sharing when they dock the camera.
LCD screens and memory-card readers on the front of the
printer make it easy to print directly from the camera, without
using a PC or USB cable. And a common digital-photography
software and user interface across HP digital-photography
products makes it easy for people to take photos and create
scrapbooks, stickers, T-shirt decals and cards—and organize
and store photos for future use.

HP has

Unique dedication to global citizenship
always been very thoughtful about
its role in the world. We exist not only
to drive shareowner value, but also
to make a contribution to society.
On one hand, this means recognizing
how our actions fit into a larger eco-
system of causes and effects. It also
means playing a direct role in the
communities in which we operate
and being good corporate citizens.

Responsible global citizenship requires
that we uphold the highest possible
standards of integrity, and conduct
our affairs with the highest degree
of transparency and accountability.
It includes living up to the best
possible standards in environmental
performance, customer privacy and
human rights—in short, it means being
a company that our employees
and shareowners can be proud of.

In 2003, HP donated
more than $62 million
in cash and equipment
worldwide.

We commit our time and resources
to global citizenship for four reasons.

First, because it‘s simply the right thing to do. We live in
a world where half the population lives on $2 a day; where
1 billion people cannot read or write. At a time when 52
of the world’s 100 largest economies are corporations, the
reach and resources of multinational companies can make an
enormous difference. HP does business in more than170
countries, including many economies that are under-developed
or developing. We have found that we can help bring about
positive change in ways that sometimes even governments
do not. Not only can we hold our suppliers to high standards,
for example, but when we apply our resources—committing
not just time and money, but people and products—we
become a catalyst for change, because governments, NGOs,
community leaders and other companies are more willing
to make a commitment themselves.

The second reason is that the global movement to enforce
labor, environmental and economic standards is maturing,
and we have an important role to play in that debate.
Three years ago, the United States and Jordan signed the
first U.S. trade agreement that links trade with labor and
environmental rights. In the past two years, the European
Union, the United Nations and the World Bank have all
launched new efforts to require reporting on sustainability

By bundling large PC
orders in bulk packages,
we’ve reduced waste
by 86 percent.

issues. The movement is likely to grow stronger, and as a
company, we can sit passively and wait to be regulated,
or we can take control and use our experience to help bring
more sustainability and predictability to a chaotic world.

The third reason is that, increasingly, shareowners and
customers are rewarding companies that achieve social
change through business. In the United States alone, there
are approximately 200 socially responsible mutual funds
today, with assets of $162 billion. At the same time, our
global citizenship efforts help retain, motivate and empower
employees. People want to work with, and for, a company
they feel pride in.

Finally, global citizenship is good for the top and bottom lines
—particularly in an industry where less than 10 percent of
the world’s population can afford to buy IT products. If we
look ahead not just to the next quarter, but to the next decade,
it’s clear that many of the markets, consumers, ideas, partners
and employees we need in order to grow will come from
the other 90 percent. HP has found that getting directly
involved in sustainable development and education projects
in the developing world—and in under-accessed and under-
privileged communities in the developed world—allows us to
invent products that we never would have imagined otherwise
and open new markets, while building relationships with
partners, customers and employees in the process.

HP was one of the first
global businesses to
achieve ISO 14001
certification for our
worldwide manufacturing
operations.

Only 7 percent of
the world’s people
have access to a PC
and 4 percent to the
Internet, according
to the World Bank.

HP’s involvement in global citizenship efforts
takes many forms, including:

e-inclusion. The gap between technology-empowered and
technology-excluded communities is often referred to as
the digital divide, and HP has taken a unique approach to
bridging this gap. While many corporations enter emerging
markets via philanthropic programs, HP is working to build
a new model of involvement, committing not just money and
products, but also our employees and our business expertise
to provide people in developing economies and underserved
communities with access to information and communications
technology. Our intent is to create sustainable solutions,
gain market insight into each population and ultimately
open new markets.

As part of our e -inclusion program, we develop what we
call i-communities, in which we put teams of people in the
most under-accessed and under-privileged communities in
the world—from a Native American reservation outside
San Diego, to the village of Kuppam, India, to a rural village
in Mogalakwena, South Africa—to work for up to three years
at a time on projects with local citizens to help them define
and then meet their goals. Through significant investment in
education and training, capacity-building and partnerships
with local governments and NGOs, we are ensuring that the
i-communities will become self-sustaining after HP completes
its engagement. In the process, we are developing culturally

HP was the first
Fortune 50 company
to self-certify with
Safe Harbor, a privacy
agreement between
the U.S. Department
of Commerce and the
European Commission.

appropriate, affordable solutions to match the communities’
needs, bringing those innovations and learnings back into HP,
and then taking them to scale for replication in other regions
of the world.

The environment. Given that we sell millions of products
annually, we are conscious of the impact HP products have
on the environment. We are committed to providing products
and services that are environmentally sound through their
lifecycles, conducting our operations in an environmentally
responsible way and establishing health and safety practices
and work environments that help minimize the risk of injury
to HP employees. We believe this is fundamental to both our
global citizenship and our long-term business success.

HP’s ability to meet these objectives rests on four pillars:
First, we manage and monitor the environmental performance
of our company through our Environmental, Health and
Safety Management System, which includes regular audits
of our sites. Second, through our HP Design for Environment
program, we focus on design to improve the energy efficiency,
materials innovation and the recyclability of our products.
Third, we’ve invested in state -of-the -art recycling programs
in order to offer customers a return-recycling service for many
HP products, providing an environmentally sound end-of-life
solution to reduce waste and conserve resources. Our Planet
Partners recycling program, operating in 20 countries, provides
a facility for customers to return computer hardware and HP

HP has added U.S.
postage-paid recycling
envelopes in our
packaging for two
of our most popular
inkjet cartridges.

print cartridges so we can recycle them. Finally, we manage
our $52 billion supply chain to improve our environmental
performance, following a Supply Chain Social and
Environmental Responsibility policy with a Supplier Code
of Conduct that addresses employment, environment, health
and labor policies, and safety practices.

Education. Good education is essential to the advancement
of information technology, which requires people skilled in
computer science and electrical engineering. In too many
regions of the world, not enough people are being trained
in these subjects to keep up with the pace of change. In
2003, HP invested millions of dollars in education around
the world —from educational grants targeted at institutions
serving low-income and ethnically diverse students, to
equipment, technical support and services to schools and
universities. Thousands of HP employees worldwide also
dedicated their time to tutor in schools.

Employee giving. Our annual U.S. Charitable Giving
Campaign matches employee giving with company funds,
up to $1,000 per employee. We run similar programs in
Canada and Singapore, and are looking for ways to
extend the programs globally. In our 2003 annual giving
campaign, the U.S. campaign raised $10.6 million through
employee and company cash contributions combined,
as well as product gifts valued at $1.6 million.

HP has a long
A unique focus on innovation
history of invention and innovation;
our goal this year has been to ensure
that our technology and business
strategies are completely interlinked,
so that our invention serves distinct
business goals and adds differentiated
value for our customers. We invest
in areas where we believe we can
make a unique contribution and lead,
and partner for the rest. Specifically,
HP R&D is now focused on four key
growth areas—rich digital media,
mobility, management software and
security—which can be leveraged
across the breadth of our offerings to

benefit a wide spectrum of customers.
After all, enterprises, SMBs and
consumers might have different needs,
but often the technology requirements
to meet those needs are the same: that it
be easy to use and manage. Our tech-
nology delivers on these requirements,
while also serving our strategy of
delivering high-tech, low-cost solutions
with the best customer experience.
In addition to the focused areas of
innovation, HP Labs continues to
research future -looking technologies
such as nanotechnology, to ensure
we are investing in long-term growth
and competitiveness.

Rich digital media

Rich digital media is one of the four
areas of innovation we’re focusing
on. The explosion of demand for
digital content anywhere, anytime,
has sparked huge growth in content
production and distribution, as well
as new business models for creating,
delivering, accessing, storing and
protecting it. Voracious consumption
of digital content in turn requires
tools to manage it. Not only do we
develop the market-leading devices
people use to create and access
digital media, but we also offer soft-
ware that helps them easily manage
and store their digital assets. On an
enterprise scale, we leverage our
expertise to provide content-delivery
and storage -management systems
for companies such as Starbucks
and image -rendering capability to
DreamWorks and others to enhance
their feature -animation projects.

SecurityMobility

Network and communications technology has made it
possible to conduct business and access digital information
almost anywhere. New services let people stay productive
while on the go; meanwhile, the decline in demand for
voice services has sparked an imperative for network
service providers (NSPs) to offer data services to leverage
their network investments and satisfy customers. HP has
a long history of innovation in the area of mobility, with
leadership in handhelds and notebooks to fault-tolerant
servers, which form the backbone of the telecommunications
industry. Specifically, we’re driving the next wave of mobile
productivity with our leadership in public and wireless
local-area networks (deploying more than 2,900 Wi-Fi
hot spots worldwide) and by applying imaging software,
drivers and Bluetooth printing technology so that people
can print from their mobile phones. Through our HP
Services teams, NSP support teams and device innovation,
we’re delivering seamless connectivity and simplified
billing as people use their wireless devices and wander
between Wi-Fi and General Packet Radio Service (GPRS)
zones. Finally, we’re focusing on Internet-protocol (IP)
telephony technology to leverage IP networks for voice and
video communication—driving cost savings for service
providers and consumers alike.

Management software

Management software helps satisfy two of the biggest
demands enterprise customers have in this new era of
technology. They need to easily manage and control all the
IT assets at their disposal—whether those are in the data
center or in the hands of mobile employees or consumers.
They also require better use of those assets, ensuring that
they’re getting the greatest efficiency out of their IT investment.
HP is increasing its focus on management software through
additional investments in HP OpenView, and acquisitions
of software businesses such as Talking Blocks, SelectAccess
and Persist Technologies. We are also in partnership with
companies, including Microsoft and BEA, to increase the
sophistication of how services and assets are managed
and used across the enterprise. The HP Utility Data Center
(UDC) models an IT environment in which all heterogeneous
data center assets are managed and utilized automatically;
several customers, including Philips’ semiconductor division,
reap the benefits of HP’s UDC offering already. Our focus
on management software also extends into the consumer
space because seamless asset management on the back
end translates to a flawless, simple experience on the front
end when consumers use PDAs and printers or when they
try to manage MP3 content or digital images on their
home technology.

Security

Security is top of mind for consumers
and businesses alike. Consumers
want to know that their personal
information and privacy are honored
by the companies they do business
with, especially over wireless networks;
businesses want to stay in business
by inoculating their networks against
security threats, protecting their intel-
lectual property and applying unique
organic models to automate protection.
Our contribution will help our business
customers stay up and running in spite
of threats and attacks on systems,
which today have become a common
occurrence. We will continue to
protect consumers’ privacy by putting
customers in control of indicating how
their information will be used, and by
participating in Safe Harbor, the de
facto global standard for enabling the
safe and legal transfer of personal
data across national borders. By lever-
aging our IT infrastructure technology,
management software, partnerships
and services, we bolster our reputation
for ensuring trustworthy technology
and interactions.

For the record

Forward-looking statements
This document contains forward-looking statements that involve
risks and uncertainties, as well as assumptions that, if they never
materialize or prove incorrect, could cause the results of Hewlett-
Packard Company and its consolidated subsidiaries to differ
materially from those expressed or implied by such forward-looking
statements. All statements other than statements of historical fact
are statements that could be deemed forward-looking statements,
including any projections of earnings, revenue, costs or other
financial items; any statements of the plans, strategies and objectives
of management for future operations; any statements concerning
proposed new products, services, developments, anticipated
performance of products or services, or industry or product
rankings; any statements regarding future economic conditions
or performance; any statements of belief; and any statements of
assumptions underlying any of the foregoing. The risks, uncertainties
and assumptions referred to above include the performance of
contracts by vendors, customers and partners; employee management
issues; the challenge of managing asset levels, including inventory;
the difficulty of aligning expense levels with revenue changes;
complexities of global political and economic developments; and
other risks and assumptions that are described from time to time
in HP’s Securities and Exchange Commission reports, including but
not limited to the annual report on form 10 -K for the year ended
October 31, 2003, and reports filed after the form 10 -K.

Use of non-GAAP financial information
To supplement our consolidated condensed financial statements
presented in accordance with United States generally accepted
accounting principles (GAAP), HP uses non -GAAP additional
measures of operating results, net earnings and earnings per share
adjusted to exclude certain costs, expenses, gains and losses we
believe appropriate to enhance an overall understanding of our
past financial performance and also our prospects for the future.
These adjustments to our GAAP results are made with the intent
of providing both management and investors a more complete
understanding of the underlying operational results and trends and
our marketplace performance. For example, the non -GAAP results
are an indication of our baseline performance before gains, losses
or other charges that are considered by management to be outside
of our core business segment operational results. In addition, these
adjusted non -GAAP results are among the primary indicators man-
agement uses as a basis for our planning and forecasting of future
periods. The presentation of this additional information is not meant
to be considered in isolation or as a substitute for net earnings or
diluted earnings per share prepared in accordance with GAAP.

Directors elected in 2003

Carleton S. Fiorina
Chairman and Chief Executive Officer
Hewlett-Packard Company

Lawrence T. Babbio, Jr.
Vice Chairman and President
Verizon Communications, Inc.
Wireless communications

Philip M. Condit
Retired Chairman and Chief Executive Officer
The Boeing Company
An aerospace manufacturer

Patricia C. Dunn
Vice Chairman
Barclays Global Investors
A global investment firm

Sam Ginn
Retired Chairman
Vodafone AirTouch Plc.
Wireless communications

Richard A. Hackborn
Former Chairman and Retired Executive Vice President
Computer Products Organization
Hewlett-Packard Company

Dr. George A. Keyworth II
Chairman and Senior Fellow
The Progress & Freedom Foundation
A public policy research institute

Robert E. Knowling, Jr.
Chief Executive Officer
New York City Leadership Academy
A leadership program of the
New York City Board of Education

Sanford M. Litvack
Partner
Quinn Emanuel Urquhart Oliver & Hedges LLP
A law firm

Thomas J. Perkins
Partner
Kleiner Perkins Caufield & Byers
A venture capital firm

Lucille S. Salhany
President and Chief Executive Officer
JH Media
A consulting company

Committees of the board

Audit Committee:
Dunn (Chair), Babbio, Keyworth, Knowling, Litvack

HR and Compensation Committee:
Condit (Chair), Ginn, Perkins, Salhany

Finance and Investment Committee:
Babbio (Chair), Dunn, Knowling, Litvack

Nominating and Governance Committee:
Ginn (Chair), Condit, Salhany

Technology Committee:
Perkins (Chair), Babbio, Hackborn, Keyworth

Executive Officers

Carleton S. Fiorina
Chairman and Chief Executive Officer

Robert P. Wayman
Executive Vice President
Chief Financial Officer

Ann O. Baskins
Senior Vice President
General Counsel and Secretary

Peter Blackmore
Executive Vice President
Enterprise Systems Group

Gilles Bouchard
Executive Vice President
Chief Information Officer

Charles N. Charnas*
Vice President
Deputy General Counsel and Assistant Secretary

Debra L. Dunn
Senior Vice President
Corporate Affairs

Jon E. Flaxman
Senior Vice President
Controller

Allison Johnson
Senior Vice President
Global Brand and Communications

Vyomesh Joshi
Executive Vice President
Imaging and Printing Group

Richard H. Lampman
Senior Vice President
Director of HP Labs

Catherine A. Lesjak
Senior Vice President
Treasurer

Ann M. Livermore
Executive Vice President
HP Services

Stephen J. Pavlovich
Vice President
Investor Relations

Marcela Perez de Alonso
Executive Vice President
Human Resources and Workforce Development

Shane V. Robison
Executive Vice President
Chief Strategy and Technology Officer

Michael J. Winkler
Executive Vice President
Chief Marketing Officer

Duane E. Zitzner
Executive Vice President
Personal Systems Group

* Non–Section 16 board-elected officer.

All other officers above are executive officers of HP
under Section 16 of the Securities Exchange Act of
1934, as amended.

Shareowner information
The annual meeting will be held at the time and place
indicated in HP’s proxy statement for the 2004 annual
meeting of shareowners.

Computershare Investor Services
Shareholder Services
Post Office Box A3504
Chicago, Illinois 60690-3504
1-800-286-5977 (from the U.S.)
(312) 360-5138 (outside the U.S.)

Computershare Trust Company
Dividend Reinvestment Services
Post Office Box A3309
Chicago, Illinois 60690-3504

Corporate information

Headquarters
3000 Hanover Street
Palo Alto, California 94304-1112
Telephone: (650) 857-1501

Regional headquarters
Americas
20555 SH 249
Houston, Texas 77070
Telephone: (281) 370-0670

Europe, Africa, Middle East
Route du Nant-d’Avril 150
CH-1217 Meyrin 2
Geneva, Switzerland
Telephone: (4122) 780-8111

Asia Pacific
19/F Cityplaza One
1111 King’s Road
Taikoo Shing, Hong Kong
Telephone: (852) 2599-7777

www.hp.com

= everything is possible

H
P

A
N
N
U
A
L

R
E
P
O
R
T

2
0
0
3

Unlike any other.

HP Annual Report 2003

5982-3025EN 01/2004