Q2 FY23/24 performance:

• ISG’s revenue declined year-on-year to US$2 billion, an inevitable impact of wider macro-economic industry headwinds, economic slowdown, and platform migration.
• ISG delivered strong performance in storage, software and services, and drove High Performance Computing (HPC) and Edge growth.
• The storage business reached an all-time revenue record, making Lenovo the third largest storage provider in the world.

Opportunities and Sustainable Growth:

• As hybrid AI develops further it will drive the future growth and diversification of the global ICT infrastructure market which Lenovo is well positioned to address given its rich portfolio of infrastructure products and solutions.
• ISG will continue to strengthen its portfolio competitiveness, as well as operational excellence and is confident to resume growth and profitability as soon as possible.

Intelligent Devices Group (IDG): Solidifying market leadership, capturing AI device opportunities

Q2 FY23/24 performance:

• IDG maintained its global No.1 position in the second quarter for both PC shipments and activations, despite market challenges.
• Revenue declined year-on-year to US$11.5 billion, but profitability resilience was maintained with an industry-leading operating margin of 7.4%.
• The smartphone business achieved double-digit premium to market shipment growth year-on-year, although overall the market was flat. The business enhanced its overall competitiveness of products and optimized its portfolio with a higher mix of premium products, with a record high mix of premium products driven by sales of razr.

Opportunities and Sustainable Growth:

• Looking ahead, IDG will fully leverage generative AI to accelerate the launch of next generation AI devices, including the launch of an AI PC next year.
• Lenovo will further invest in technology innovation for growth and long-term competitiveness.

ESG highlights

Lenovo has been recognized for several ESG achievements over the past quarter, including:

• Being included in the 2023 Hang Seng Corporate Sustainability Index, where it achieved the strongest score in the IT industry for environmental and social achievements.
• The Group was also awarded ‘Champion’ status in the Canalys Global Sustainability Ecosystems Leadership matrix.
• The Group was named as an EPEAT Climate Champion, with more than 400 products registered as part of the first EPEAT Climate+ designated products listing. EPEAT is the premier global ecolabel for electronics and technology products.
• In September Lenovo joined the UN Global Compact Forward Faster initiative to accelerate private sector action for the UN’s 17 Sustainable Development Goals in order to meet the 2030 agenda.

[1] non-HKFRS measure was adjusted by excluding net fair value changes on financial assets at fair value through profit or loss, amortization of intangible assets resulting from mergers and acquisitions, mergers and acquisitions related charges; and the corresponding income tax effects, if any.

About Lenovo

Lenovo is a US$62 billion revenue global technology powerhouse, ranked #217 in the Fortune Global 500, employing 77,000 people around the world, and serving millions of customers every day in 180 markets. Focused on a bold vision to deliver smarter technology for all, Lenovo has built on its success as the world’s largest PC company by further expanding into growth areas that fuel the advancement of ‘New IT’ technologies (client, edge, cloud, network, and intelligence) including server, storage, mobile, software, solutions, and services. This transformation together with Lenovo’s world-changing innovation is building a more inclusive, trustworthy, and smarter future for everyone, everywhere. Lenovo is listed on the stock exchange of Hong Kong under Lenovo Group Limited (HKSE: 992)(ADR: LNVGY). To find out more visit https://www.lenovo.com, and read about the latest news via our StoryHub.