What changed in this filing

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Item 1. Business

2022-12-08 compared with 2021-12-10 · 285 added, 238 removed, 238 unchanged (69% of the section changed)

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Hewlett and David Packard, and we strive every day to uphold and enhance that legacy through our dedication to providing innovative technological solutions to our customers.

On November 1, 2015, HP Inc.

("former Parent"), formerly known as Hewlett-Packard Company ("HP Co.") spun-off Hewlett Packard Enterprise Company ("we", "us", "our", "Hewlett Packard Enterprise", "HPE", or "the Company") pursuant to a separation agreement (the "Separation and Distribution Agreement") (collectively the "Separation").

Since the Separation, we have operated as an independent, publicly-traded company.

On April 1, 2017, the Company completed the separation and merger of our Enterprise Services business with DXC Technology Company ("DXC", "the Everett Transaction" or "Everett").

On September 1, 2017, the Company completed the separation and merger of our Software business segment with Micro Focus International plc ("Micro Focus", "the Seattle Transaction" or "Seattle" ).

We use the terms "Hewlett Packard Enterprise", "HPE", "the Company", "we", "us", and "our" to refer to Hewlett Packard Enterprise Company.

COVID-19 Pandemic Update

While great progress has been made in the fight against the novel coronavirus pandemic ("COVID-19" or "pandemic"), it remains a global challenge.

In fiscal 2021, due to an unprecedented demand for electronic devices and related industry-wide supply constraints, the global economy encountered a challenging supply chain environment.

The pandemic continues to have an impact on our financial performance and we are currently unable to predict the extent to which it may adversely impact our future business operations, financial performance and results of operations.

While great progress has been made in the fight against the novel coronavirus pandemic ("COVID-19" or "pandemic"), there remain global challenges from the pandemic's lasting effects.

In fiscal 2022 and 2021, due to an unprecedented demand for electronic devices and related industry-wide supply constraints, the global economy encountered a challenging supply chain environment.

At the end of fiscal 2022, the supply chain challenges we experienced as a result of the pandemic eased, but we are currently unable to predict the extent to which they may adversely impact our future business operations, financial performance and results of operations.

For a further discussion of the risks, uncertainties and actions taken in response to COVID-19, see risks identified in the section entitled "Risk Factors" in Part I, Item 1A.

In 2021, COVID-19 vaccines were broadly distributed and administered, and beginning October 4, 2021, we adopted a policy to require proof of vaccination from HPE personnel, contingent workers, and guests in order to return to our sites, where permitted by local laws and regulations and on the timeline determined appropriate for the geography (as of end of fiscal 2021, the policy was operationalized only in the U.S.).

On October 20, 2021, we updated our vaccination policy to require vaccination as a condition of employment for all HPE personnel covered by President Biden's executive order, effective January 18, 2022.

We recognize that there are existing legal challenges to the executive order, and we will ensure that the timing and scope of the implementation of our vaccination requirement is consistent with the legal status of the executive order.

We are committed to help support costs for the vaccine through HPE health benefits or other programs, to the extent not covered by government programs, medical plans or other sources.

The pace of technology disruption continues to increase, and the pandemic has accelerated several megatrends.

First, data at the edge is increasing exponentially, driven by the proliferation of devices.

Secure connectivity is essential to enable the digital experiences we now rely on – and power new, engaging digital experiences in the future.

In 2021, HPE adopted vaccination policies to protect the health and safety of our team members and customers.

We monitored the situation, including pandemic-related case data and broader government health guidelines, in order to update these policies as the situation evolved.

During most of fiscal 2022, our team members in the U.S.

were required to be vaccinated in order to enter our sites, work at customer and third-party sites, and for travel to attend work-related events, unless the team member had an approved exemption granted by our human resources organization and underwent routine testing.

Given the effectiveness and broad access of v accines, along with their acceptance by a high percentage of our U.S.

workforce, as of September 6, 2022, we lifted our vaccination requirement for access to sites, travel, and work-related events in the U.S.

However, any team member or contingent worker working at or visiting customer or third-party sites must continue to comply with those parties' rules and provide proof of vaccination or a negative test.

Outside of the U.S., sites are open at varying capacities based on local pandemic conditions and risk mitigation strategies enacted by country leadership.

We maintain compliance with all local laws and regulations with respect to office attendance and safety protocols.

Over the last several years, new megatrends around edge, cloud, and data have emerged to shape customer expectations for enterprise technology.

First, data at the edge is increasing exponentially, driven by the proliferation of devices that require secure connectivity to enable reliable digital experiences.

Second, enterprises need a cloud experience everywhere to manage data and workloads wherever they live across a distributed enterprise.

Third, data growth is creating countless new opportunities.

Enterprises need ways to generate insights from this data to build new business models.

Across these trends is the shift in how enterprises are consuming their technology.

Increasingly, customers want to digitally transform while preserving capital and eliminating operating expense by paying only for the IT they use.

Data insights are critical to deliver business outcomes, but extracting value from data is challenging.

Data is growing and evolving rapidly.

Its characteristics are shifting, as it becomes more unstructured, more time-sensitive and more distributed.

Third, data growth is creating countless new opportunities to generate meaningful business insights.

Customer response to these megatrends has been accelerated by the pandemic and the increasing pace of technological innovation.

In concert with these trends, enterprises are consuming their technology differently.

Increasingly, customers want to digitally transform while preserving capital and eliminating operating expense by paying only for the information technology ("IT") they use.

The megatrends are ushering in long-lasting changes to IT, including accelerating hybrid multi-cloud adoption.

Customers across industry verticals are interested in unifying all the applications and data with a consistent cloud experience.

Customers also want to better extract value from their growing stores of rapidly evolving data, knowing that actionable insights from data are critical to deliver business outcomes.

Data is becoming more unstructured, more time-sensitive and more distributed.

Frequently, data is siloed and spread across different multi-gen IT systems, often trapped in critical legacy architecture.

Many organizations cannot adequately extract insights from their data at the edge or face cloud migration challenges because of their legacy applications.

Many organizations cannot adequately gain insights from their data at the edge or face cloud migration challenges because of their legacy applications.

Customers need a data-first modernization approach across edge to data center to cloud.

We declared our vision to be the edge-to-cloud company.

Our HPE GreenLake platform accelerates multi-generation IT transformation through a unified cloud services experience that enables customers to access, control and maximize the value of all their workloads and data.

Our solutions across connectivity, cloud and data – which are increasingly being delivered as-a-service through HPE GreenLake – are complemented by HPE Pointnext services that provide unique transformation capabilities, as well as HPE Financial Services, which helps customers unlock financial capacity.

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HPE has deployed an edge-to-cloud strategy that capitalizes on emergent megatrends and delivers a data-first modernization approach for customers.

Our vision to be the edge-to-cloud company has led us to innovate our solutions across connectivity, cloud, and data.

We have shifted our mix of products and services, and how we deliver that mix to customers.

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HPE has evolved to a platform-based model, fueled by a portfolio richer in software and services.

Our HPE GreenLake edge-to-cloud platform is a centerpiece of our strategy;

it accelerates multi-generation IT transformation through a unified cloud services experience that empowers customers to access, analyze, and extract value from their data across public clouds, data centers, colocation facilities, and at the edge.

Our solutions across connectivity, cloud and data are delivered as-a-service through the HPE GreenLake edge-to-cloud platform across our Intelligent Edge, Compute, High Performance Computing & Artificial Intelligence ("HPC & AI"), and Storage business segments.

Financial Services complements our solution offerings by helping customers unlock financial capacity.

Human Capital Resources

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Our company has always been an engine of innovation, and our approximately 60,200 employees as of October 31, 2022, are proud of the ways our technology enables our customers to achieve meaningful outcomes like curing disease, modernizing farming to cure world-hunger and democratizing transportation through autonomous vehicles.

Our Culture :

We recognize the critical importance of talent and culture to the success of HPE and our ability to fulfill our purpose.

We are passionate about the values that drive our success, which is why we believe in investing in our employees and in the communities where we live and work.

We are passionate about the values that drive our success, which is why we believe in investing in our team members and in the communities where we live and work.

HPE has intensified its focus on embedding these values into a vibrant culture that creates a superior team member experience and a highly engaged workforce, driving improvements across our communications, our reward programs, and our work environment.

Through such efforts, we are fostering a collaborative, inclusive and inspiring experience for all our team members.

Our most recent global engagement survey shows how these intentional efforts are making a difference, with our overall Employee Engagement Index increasing year-over-year and measuring 84%.

Through such efforts, we aim to foster a collaborative, inclusive and inspiring experience for all our team members.

Our most recent global engagement survey shows how these intentional efforts are making a difference, with our overall Employee Engagement Index measuring 83%.

More than 84% of team members would recommend HPE as a great place to work, and 88% say they are proud to work for HPE.

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We have identified four key cultural beliefs that guide how we lead on a daily basis:

belief in accelerating what’s next, in bold moves, in the “power of yes we can”, and in being a force for good.

belief in accelerating what’s next, bold moves, the “power of yes we can”, and being a force for good.

We embed these beliefs in a deep-rooted DNA that puts customers first, enabling us to partner, innovate and act with integrity.

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Diversity, Equity, and Inclusion:

We are committed to being unconditionally inclusive to capture the ideas and perspectives that fuel innovation and enable our workforce, customers, and communities to succeed in the digital age.

We are committed to being unconditionally inclusive to capture the ideas and perspectives that advance the way we live and work by enabling our workforce, customers, and communities to succeed in the digital age.

This is because, by harnessing the potential of our technologies and our team members, we can be a force for good.

Annual goals are set to increase the representation of both women and ethnically diverse talent by at least 1 percentage point year-over-year.

At the close of fiscal 2021, the representation of women in our workforce had increased 1 percentage point since the prior year, with increased representation at every level worldwide, exceeding the goals in both technical and executive roles.

We also increased our representation of all underrepresented minorities in the U.S., increasing such representation by 1.6 percentage points overall.

Annual goals are set to increase the representation of both worldwide female employees and worldwide female executives by at least 1 percentage point year-over-year.

Aspirational goals are also set to double our U.S.

Black and Hispanic executive headcounts by 2027, from 2020 levels.

At the close of fiscal 2022, the representation of worldwide female executives in our workforce had increased 1.5 percentage points since the prior year, with increased representation at every level worldwide.

We also increased our representation of all underrepresented minorities in the U.S.

by 1.3 percentage points overall.

We are committed to delivering on our focus on equity, as well, by taking a data-led approach at various points across the team member lifecycle to evaluate and improve our diversity, equity, and inclusion efforts.

In the U.S., the HPE Voice of the Workforce Employee Engagement Index is 81%.

All HPE Employee Engagement Indexes for U.S.

ethnically diverse talent groups were the same or better, some by as much as 8 percentage points.

The leadership standards clearly articulate that all people leaders are expected to continuously develop their inclusive leadership capabilities.

Our Board, CEO and Executive Committee role model high standards for diversity, equity and inclusion and are leading sustainable change, with strong governance and oversight via our Inclusion and Diversity Council.

Our Board, CEO, and Executive Committee model high standards for diversity, equity, and inclusion and are leading sustainable change, with strong governance and oversight via our Diversity, Inclusion, and Equity Council.

We have also been committed to advancing transparency, by publicly disclosing further information and data on diversity, equity, and inclusion at HPE, including the Equal Employment Opportunity report (EEO-1) data, since 2018.

We invest in attracting, developing, and retaining the best talent.

We do this by communicating a clear purpose and strategy, transparent goal setting, driving accountability, continuously assessing, developing, advancing talent, and a leadership-driven talent strategy.

We do this by communicating a clear purpose and strategy, setting transparent goals, driving accountability, continuously assessing, developing, and advancing talent, and advancing a leadership-driven talent strategy.

The dynamism of our industry and our company enables team members to grow in their current roles and build new skills.

Over the past year, our approximately 60,400 team members completed over 455,000 online and instructor-led courses across a broad range of categories – leadership, inclusion and diversity, professional skills, technical and compliance.

Over the past year, our approximately 60,200 team members completed over 665,000 online and instructor-led courses across a broad range of categories – leadership;

inclusion and diversity;

professional skills;

and compliance.

HPE is deeply committed to identifying and developing the next generation of top tier leadership with a special focus on diverse and technical talent.

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The process focuses on accelerating talent development, strengthening succession pipelines, and advancing diversity representation for our most critical roles.

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We believe people should be paid equitably for what they do and how they do it, regardless of their gender, race, or other personal characteristics.

We maintain policies to promote equal pay, and we regularly review our global pay practices with an aim to ensure that team members in similar roles and locations are paid commensurately with their experience and responsibilities.

We partner with independent third-party experts to conduct annual pay assessments and identify unexplained gaps between our present state and our goal of equitable pay treatment for all team members.

Where these reviews identify such gaps at a country-wide level, we adjust compensation to eliminate the gap.

As a result of our efforts, we are proud to report that our 2021 pay equity review demonstrated that we have achieved pay parity for base compensation and bonus targets between male and female team members in the U.S.

(including among underrepresented ethnicities), U.K., and India, when accounting for job title, time-in-role, experience, and location.

We conduct a number of compensation analyses in other countries to provide competitive and equitable pay and, where permissible, we intend to incorporate similar third-party pay assessments into our existing processes.

Work That Fits Your Life:

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It includes an industry-leading paid parental leave program (minimum 6 months), part-time work opportunities for new parents or team members transitioning to retirement, and "Wellness Fridays" encouraging team members to leave work early one Friday per month to focus on their well-being.

HPE's broader wellness program offers flexibility built around team member needs while continuing to deliver on critical business results.

Key features include mental health support including employee assistance programs and free headspace accounts, physical fitness activities, and financial wellness programs.

The HPE Global Wellness Program is a comprehensive program that promotes overall health and well-being by providing team members with programs and resources that offer flexibility built around team member needs while continuing to deliver on critical business results.

The program consists of four pillars:

physical health, financial well-being, mental and emotional health, and community well-being.

Additionally, we offer a hybrid work environment for the majority of our team members, allowing them substantial flexibility to determine the number of days in the office that work best for them.

Total Rewards:

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Total direct compensation is generally positioned within a competitive range of the market median, with differentiation based on tenure, skills, proficiency, and performance to attract and retain key talent.

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Board Oversight:

Our Board of Directors plays an active role in overseeing our human capital management strategy and programs.

Our HR and Compensation Committee provides oversight of our human resources and workforce management programs, including but not limited to those related to corporate culture;

compensation plans and policies;

diversity and inclusion;

and talent acquisition, development, and retention.

HPE’s strong and healthy culture is critical to accelerating what’s next for our customers and partners – and the success of our company.

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Our Business Segments, Products and Services

In October 2021, we renamed the segment previously known as High Performance Computing and Mission Critical Solutions ("HPC & MCS") to High Performance Computing and Artificial Intelligence ("HPC & AI").

Our operations are organized into six business segments:

Compute, HPC & AI, Storage, Intelligent Edge, Financial Services ("FS"), and Corporate Investments and Other.

The class of similar product categories within each segment which accounted for more than 10% of our consolidated net revenue in each of the past three years were as follows:

Our operations are organized into six reportable business segments:

Compute, HPC & AI, Storage, Intelligent Edge, Financial Services, and Corporate Investments and Other.

The class of similar product categories within each segment which accounted for more than 10% of our consolidated net revenue in each of the past three years was as follows:

• Fiscal 2022 - Compute products, Compute services, Intelligent Edge products

• Fiscal 2021 - Compute products, Compute services, Storage products

• Fiscal 2020 - Compute products, Storage products, Compute services

• Fiscal 2019 - Compute products, Storage products

A summary of our net revenue, earnings from operations and assets for our segments can be found in Note 2, "Segment Information", to our Consolidated Financial Statements in Item 8 of Part II.

A discussion of certain factors potentially affecting our operations is set forth in Item 1A, "Risk Factors."

Our Compute portfolio offers both general purpose servers for multi-workload computing and workload-optimized servers which offer the best performance and value for demanding applications.

This portfolio of products includes our secure and versatile HPE ProLiant rack and tower servers;

and HPE Synergy, a composable infrastructure for traditional and cloud-native applications.

HPE ProLiant servers are the compute foundation for the fastest growing workloads in the industry including hyperconverged infrastructure ("HCI"), virtual workspaces ("VDI"), data management, transcoding and visualization.

Compute offerings also include operational and support services.

HPE GreenLake for Compute provides flexible Compute as-a-service ("aaS") IT infrastructure on a consumption basis.

Our HPC & AI business offers standard and custom hardware and software solutions designed to support specific use cases.

Our hardware solutions are segmented into several categories, High Performance Compute ("HPC"), Data Solutions, and Edge Compute.

The HPC portfolio includes the HPE Apollo and Cray products that are sold as supercomputing systems, including exascale supercomputers (systems which have exaflops performance or a billion-billion calculations per second), to support data-intensive workloads for high performance computing, data analytics and artificial intelligence applications.

The Data Solutions portfolio (previously named Mission Critical Solutions) includes the HPE Superdome Flex, HPE Nonstop and HPE Integrity product lines for critical applications such as payments and transaction processing that require high availability, fault-tolerant computing infrastructure.

The Edge Compute product portfolio includes HPE Edgeline products for computing at the network edge.

In connection with our hardware offerings, HPE offers a suite of software products, including AI-powered technologies designed to play a critical role in turning data into readily available, actionable information to fuel growth and innovation for our customers.

These include the recently acquired Determined AI, which provides a software stack to train AI models using its open source machine learning platform.

HPC & AI offerings also include operational and support services and solutions delivered as-a-service through HPE GreenLake cloud services, which is a flexible as-a-service platform that HPE can provide on-premises or in a colocation facility.

With offerings that are artificial intelligence-driven and built for hybrid cloud environments with GreenLake consumption models, we provide the right workload optimized destinations for data.

A portion of HPC & AI revenue is generated by sales to government entities, which are subject to the terms and rights for the convenience of the government entity.

Our Compute portfolio consists of both general-purpose servers for multi-workload computing and workload-optimized servers to deliver the best performance and value for demanding applications.

This portfolio of products includes our secure and versatile HPE ProLiant rack and tower servers and HPE Synergy, a composable infrastructure for traditional and cloud-native applications.

HPE ProLiant servers are the compute foundation for the fastest growing workloads in the industry including hyperconverged infrastructure ("HCI"), virtual workspaces, data management, transcoding and visualization.

Compute offerings also include operational and support services and HPE GreenLake for Compute.

HPE GreenLake for Compute provides flexible Compute as-a-service IT infrastructure on a consumption basis through the HPE GreenLake edge-to-cloud platform.

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Our HPC & AI business offers integrated systems comprised of software and hardware designed to address High-Performance Computing ("HPC"), Artificial Intelligence ("AI"), Data Analytics, and Transaction Processing workloads for government and commercial customers globally.

Our solutions are segmented into the following categories:

HPC and Data Solutions.

The HPC portfolio of products includes HPE Cray, HPE Apollo, and Converged Edge Systems (formerly known as Edge Compute) hardware, software, and data management appliances that are often sold as supercomputing systems, including exascale supercomputers (systems that can process 10 18 floating point calculations per second), that support data-intensive simulations and large-scale AI applications.

The Data Solutions portfolio includes the mission critical compute portfolio and HPE NonStop.

The mission critical compute portfolio includes the HPE Superdome Flex and HPE Integrity product lines for critical applications, including large enterprise software applications and data analytics platforms.

The HPE NonStop portfolio includes high-availability, fault-tolerant software and appliances that power applications, such as credit-card transaction processing that require large scale and high availability.

As part of our systems are aligned to the convergence of HPC and AI-at-scale across our industry, HPE offers a suite of software products, including AI-powered technologies designed to play a critical role in turning data into readily available, actionable information to fuel growth and innovation for our customers.

These include a software stack to train AI models using our open-source machine learning platform.

HPC & AI offerings also include operational and support services, whether sold with our systems or as standalone services.

We also offer most of our solutions as-a-service through the HPE GreenLake edge-to-cloud platform.

With offerings that are AI-driven and built for hybrid cloud environments with HPE GreenLake consumption models, we provide the right workload optimized destinations for data and insights development for our clients.

A portion of HPC & AI revenue is generated in part by sales to government entities, which are subject to the terms and rights for the convenience of the government entity.

These terms and rights include in some instances a dependence on the appropriation of future funding and also termination rights contingent upon not achieving certain milestones.

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HPE Storage is transforming the customer experience with storage as-a-service and cloud data services through the HPE GreenLake edge-to-cloud platform and data infrastructure to enable customers to simplify IT and unlock greater levels of agility with a cloud operational experience.

The customer experience transformation also includes AI and data-driven intelligence with

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HPE InfoSight and HPE CloudPhysics.

The customer experience transformation also includes AI and data-driven intelligence with HPE InfoSight and HPE CloudPhysics.

Customers can store and serve their data with speed and high availability to applications, secure and protect their data across hybrid clouds from ransomware and cyber threats, and gain data mobility across private cloud, public cloud, and multi-cloud environments.

The Storage portfolio includes primary storage with HPE Alletra that offers cloud-native data infrastructure, HPE Primera, HPE Nimble Storage and HPE 3PAR;

software-powered hyper-converged infrastructure consisting of HPE Nimble Storage dHCI and HPE SimpliVity;

disaster recovery and ransomware recovery with Zerto, our recent acquisition;

backup as-a-service with HPE Backup and Recovery Service, and big data solutions running on HPE Apollo servers.

The Storage portfolio includes primary storage product and service offerings, which includes software-powered HCI consisting of HPE Nimble Storage Disaggregated HCI and HPE SimpliVity, cloud native primary storage with HPE Primera and HPE Alletra, our first storage as-a-service with HPE GreenLake for Block Storage, disaster recovery and ransomware recovery with Zerto, backup as-a-service with HPE Backup and Recovery Service, and big data solutions running on HPE Apollo servers.

Storage also provides solutions for secondary workloads and traditional tape, storage networking, and disk products, such as HPE Modular Storage Arrays ("MSA") and HPE XP.

We make our data infrastructure portfolio available as-a-service through HPE GreenLake.

Storage offerings also include operational and support services, software subscription services, and solutions delivered as-a-service through HPE GreenLake.

Storage offerings also include operational and support services, software subscription services, and data infrastructure portfolio and solutions delivered as-a-service through the HPE GreenLake edge-to-cloud platform.

Intelligent Edge

The Intelligent Edge business is comprised of a portfolio of secure edge-to-cloud solutions operating under the Aruba brand that include wired and wireless local area network ("LAN"), campus and data center switching, software-defined wide area networking (from the Silver Peak acquisition), network security, and associated services to enable secure connectivity for businesses of any size.

The Intelligent Edge business is comprised of a portfolio of secure edge-to-cloud solutions operating under the Aruba brand that include wired and wireless local area network ("LAN"), campus and data center switching, software-defined wide area networking, network security, and associated services to enable secure connectivity for businesses of any size.

The primary business drivers for Intelligent Edge solutions are work from anywhere environments, mobility, and internet-of-things ("IoT").

The insights from data generated at the edge are key to driving new business outcomes and experiences.

The HPE Aruba Product portfolio includes wired and wireless local area network hardware products such as Wi-Fi access points, switches, routers and sensors.

The HPE Aruba software and services portfolio includes cloud-based management, network management, network access control, analytics and assurance, location services software, and professional and support services, as well as as-a-service and consumption models through HPE GreenLake for the Intelligent Edge portfolio of products.

We also offer Aruba ESP (Edge Services Platform), which takes a cloud-native approach to helping customers meet their connectivity, security, and financial requirements across campus, branch, data center, and remote worker environments, covering all aspects of wired, wireless LAN, and wide area networking ("WAN").

The HPE Aruba product portfolio includes hardware products, such as Wi-Fi access points, switches, and gateways.

The HPE Aruba software and services portfolio includes cloud-based management, network management, network access control, analytics and assurance, location services software, and professional and support services, as well as as-a-service and consumption models through the HPE GreenLake edge-to-cloud platform for the Intelligent Edge portfolio of products.

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We also offer Aruba ESP (or Edge Services Platform), which takes a cloud-native approach to helping customers meet their connectivity, security, and financial requirements across campus, branch, data center, and remote worker environments, covering all aspects of wired, wireless LAN, and wide area networking.

Financial Services

Financial Services ("FS") provides flexible investment solutions, such as leasing, financing, IT consumption, and utility programs and asset management services, for customers that facilitate unique technology deployment models and the acquisition of complete IT solutions, including hardware, software and services from Hewlett Packard Enterprise and others.

FS also supports financial solutions for on-premise flexible consumption models, such as HPE GreenLake.

Financial Services ("FS") provides flexible investment solutions, such as leasing, financing, IT consumption, utility programs, and asset management services for customers that facilitate unique technology deployment models and the acquisition of complete IT solutions, including hardware, software, and services from Hewlett Packard Enterprise and others.

FS also supports financial solutions for on-premise flexible consumption models, such as our HPE GreenLake edge-to-cloud platform.

In order to provide flexible services and capabilities that support the entire IT life cycle, FS partners with customers globally to help build investment strategies that enhance their business agility and support their business transformation.

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Corporate Investments and Other

Corporate Investments and Other includes the Advisory and Professional Services ("A & PS") business which primarily offers consultative-led services, HPE and partner technology expertise and advice, implementation services as well as complex solution engagement capabilities;

Corporate Investments and Other includes the Advisory and Professional Services ("A & PS") business, which primarily offers consultative-led services, HPE and partner technology expertise and advice, implementation services, and complex solution engagement capabilities;

the Communications and Media Solutions ("CMS") business, which primarily offers software and related services to the telecommunications industry;

the Software business which offers HPE Ezmeral Container Platform and HPE Ezmeral Data Fabric;

the HPE Software business, which offers the HPE Ezmeral Container Platform and HPE Ezmeral Data Fabric;

and Hewlett Packard Labs, which is responsible for research and development.

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As data grows and evolves and enterprises become increasingly distributed, HPE’s edge-to-cloud strategy is uniquely designed to enable customers to securely access, control, and maximize the value of all their workloads and data assets to accelerate business outcomes.

The HPE GreenLake platform is an open, secure, fully integrated platform that brings a unified experience across the edge, data center, colocation and cloud.

The HPE GreenLake edge-to-cloud platform is an open, secure, fully integrated platform that brings a unified experience across the edge, data center, colocation, and cloud.

It is automated and easy to consume with capacity available to scale up and down on demand.

It offers true pay per use consumption so customers only pay for what they use, and they can have the entire hybrid cloud experience managed for them through our HPE GreenLake managed services offering.

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• Comprehensive portfolio.

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Enterprises of all sizes are looking to digitally transform in order to develop next-generation cloud-native applications, create actionable insights from their data, and drive business growth, but they face many challenges including lack of in-house IT skills, limited budgets and options for financing, and lack of flexibility to choose the technology foundation that best meets their needs.

Consumption-based IT offers solutions to these challenges by providing greater agility, empowering people to shift from managing infrastructure to driving innovation by leveraging insights from their data, while eliminating capital and operating expenses tied to infrastructure over-provisioning.

Consumption-based IT offers solutions to these challenges by providing greater agility, which empowers people to shift from managing infrastructure to driving innovation by leveraging insights from their data, while also eliminating capital and operating expenses tied to infrastructure over-provisioning.

HPE is distinctly differentiated in delivering a true consumption-based IT experience.

• Open platforms.

The world is shifting from centralized and closed approaches in large data centers to a future of centers of data everywhere, which are highly decentralized and distributed.

This shift demands a unified cloud platform that can put the agility and intelligence close to customers’ data sources to create real-time insights everywhere.

We believe the cloud experience should be open and seamless across all our customers' clouds, rather than requiring customers to be locked into a cloud stack.

• Multi-year innovation roadmap and strong balance sheet.

We have been in the technology and innovation business for over 80 years.

Our vast intellectual property portfolio and global research and development capabilities are part of a broader innovation roadmap designed to help organizations take advantage of the expanding amount of data available and leverage the latest technology developments like cloud, artificial intelligence, and cybersecurity to drive business outcomes now and in the future.

We also have a strong balance sheet and liquidity profile that provides the financial flexibility and speed to take advantage of acquisition opportunities.

Our vast intellectual property portfolio and global research and development capabilities are part of a broader innovation roadmap designed to help organizations take advantage of the expanding amount of data available and leverage the latest technology developments such as cloud, artificial intelligence, supercomputing, and cybersecurity to drive business outcomes now and in the future.

We also have a strong balance sheet and liquidity profile that provide the financial flexibility and speed to take advantage of acquisition opportunities.

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• Global distribution and partner ecosystem.

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We have one of the largest go-to-market capabilities in our industry, including a large ecosystem of channel partners, which enables us to market and deliver our product offerings to customers located virtually anywhere in the world.

Our HPE GreenLake edge-to-cloud platform provides open cloud application programming interfaces ("APIs") to our partners, enabling them to better offer their unique solutions to customers.

• Custom financial solutions.

Through Financial Services we can help customers create investment capacity to accelerate their transformations by helping them free up capital, capture value from older assets, achieve sustainability goals, invest in new technologies as-a-service, and weather financial volatility.

Financial Services is also an enabler of our consumption-based IT models by helping spread our upfront solution costs over the duration of the customer contract.

Through Financial Services' Global Asset Recovery Centers, we are helping customers achieve their own sustainability goals by recovering over 3 million IT assets in fiscal 2020 and refurbishing close to 90% for reuse.

Through our Financial Services segment, we help customers create investment capacity to accelerate their transformations by helping them free up capital, capture value from older assets, achieve sustainability goals, invest in new technologies as-a-service, and weather financial volatility.

FS is also an enabler of our consumption-based IT models by helping spread our upfront solution costs over the duration of the customer contract.

Through Financial Services' Technology Renewal Centers, we are helping customers achieve their own sustainability goals by recovering over 3 million IT assets in fiscal 2021 and refurbishing more than 85% for reuse.

• Experienced leadership team.

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We are led by our President and Chief Executive Officer, Antonio Neri, who has proven experience in developing transformative business models, building global brands, and driving sustained growth and expansion in the technology industry.

Neri's experience includes over 20 years combined at HPE and HP Co.

in various leadership positions.

Neri's experience includes more than 25 years combined at HPE and Hewlett-Packard Company ("HP Co.") in various leadership positions.

Our senior management team has many years of experience in our industry and possesses extensive knowledge of and experience in the enterprise IT business and the markets in which we compete.

• Open platforms.

The world is shifting from centralized and closed approaches in large data centers to a future of centers of data everywhere which are highly decentralized and distributed.

This shift demands a common cloud platform that can put the agility and intelligence close to the customers data sources to create real-time insights, everywhere.

Many of our competitors want to lock customers into a cloud stack.

Conversely, we believe that the cloud experience should be open and seamless across all our customers' clouds — and the best cloud transformation partner is one who is unbiased and offers choice.

We are unique in our ability to enable any hybrid cloud strategy and a consistent experience that is open to any cloud and differentiated with our partner integrations.

Sales, Marketing and Distribution

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• independent software vendors that provide their clients with specialized software products and often assist us in selling our products and services to clients purchasing their products;

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• systems integrators that provide expertise in designing and implementing custom IT solutions and often partner with us to extend their expertise or influence the sale of our products and services;

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building products to order and configuring products to order.

We build products to order to maximize manufacturing and logistics efficiencies by producing high volumes of basic product configurations.

We build products to order to maximize manufacturing and logistics efficiencies by producing

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high volumes of basic product configurations.

Alternatively, configuring products to order enables units to match a customer's particular hardware and software customization requirements.

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However, we do rely on single-source suppliers for certain customized parts (although some of these sources have operations in multiple locations in the event of a disruption) and a disruption or loss of a single-source supplier could delay production of some products.

In some instances, our single-source suppliers (e.g.

Intel and AMD as suppliers of certain x86 processors) are also the single-source suppliers for the entire market;

In some instances, our single-source suppliers (e.g., Intel and AMD as suppliers of certain x86 processors) are also the single-source suppliers for the entire market;

disruptions with these suppliers would result in industry-wide dislocations and therefore would not disproportionately disadvantage us relative to our competitors.

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See "Risk Factors—We depend on third-party suppliers, and our financial results could suffer if we fail to manage our supplier relationships properly" in Item 1A.

As a result of the pandemic, the industry is being impacted by an increased worldwide demand for electronic components that is anticipated to last at least through the end of this calendar year.

This global shortage impacts HPE and the technology market segment as a whole.

While we anticipate further industry-wide tightening we took proactive inventory buffering measures in order to position us well during the second half of the fiscal year and going forward.

As a result of the pandemic, worldwide demand for electronic components spiked in many different technology sectors, causing industry-wide shortages for many electronic components.

While availability for many components are now recovering, some shortages are nevertheless anticipated to persist.

HPE continues to rely on proactive inventory buffering measures in order to position ourselves well for availability of those components.

We will take additional inventory actions as appropriate in alignment to the market demand, and will continue to leverage strong partnerships and long-term agreements with our suppliers.

Backlog represents the price of orders related to current or prior periods for which work has not been performed or goods have not been delivered as of the reporting period.

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The higher levels of backlog we experienced in the prior-year period due to the pandemic were largely delivered by the end of fiscal 2020.

At the same time, the global pandemic resulted in an unprecedented demand for electronic devices, which, coupled with related industry-wide supply constraints, has led to a challenging supply chain environment.

Additionally, the pandemic continues to play a role with ongoing delays to the global logistics environment.

As a result, in the second half of fiscal 2021, we experienced a shortage of electric components and logistics timing issues which resulted in significantly higher levels of order backlog and commodity costs across our hardware segments, and particularly in Compute, Storage and Intelligent Edge.

Currently, we expect these challenging supply chain conditions to persist in the near term.

During the pandemic, we have also viewed backlog as an indication of demand health as governments around the world continue to impose restrictions on non-essential work activities and travel.

As and when the pandemic subsides, our focus on backlog may again become less relevant as a reliable indicator of future demand.

The global pandemic resulted in an unprecedented demand for electronic devices, which, coupled with related industry-wide supply constraints and inflationary pressures, has led to a challenging supply chain environment.

Additionally, the lasting effects of the pandemic have continued to play a role with ongoing delays to the global logistics environment.

During fiscal 2022, while the demand for our products remained strong, we continued to experience a shortage of certain key components, logistics timing issues, and a challenging global economic environment.

At the same time, in the second half of fiscal 2022, certain supply chain challenges eased in part as a result of a softening demand environment for consumer electronic devices resulting in increased supply to enterprise markets.

We exited fiscal 2022 with an elevated backlog as compared to the prior fiscal year-end.

We expect the supply chain environment to continue to present challenges in the near term.

During the pandemic, we have viewed backlog as an indication of demand health, as governments around the world imposed restrictions on non-essential work activities and travel.

As and when the pandemic subsides (particularly in non-U.S.

geographies in which we operate), our focus on backlog may again become less relevant as a reliable indicator of future demand.

For a further discussion of the risks, uncertainties and actions taken in response to the pandemic, see risks identified in the section entitled "Risk Factors" in Item 1A.

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Approximately 67% of our overall net revenue in fiscal 2022 came from sales outside the United States.

For a discussion of certain risks attendant to our international operations, see "Risk Factors—Due to the international nature of our business, political or economic changes and the laws and regulatory regimes applying to international transactions or other factors could harm our future revenue, costs and expenses, and financial condition," and "—We are exposed to fluctuations in foreign currency exchange rates" in Item 1A, "Quantitative and Qualitative Disclosure about Market Risk" in Item 7A of Part II and Note 13, "Financial Instruments", to our Consolidated Financial Statements in Item 8 of Part II, which are incorporated herein by reference.

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For a discussion of certain risks attendant to our international operations, see "Risk Factors—Due to the international nature of our business, political or economic changes and the laws and regulatory regimes applying to international transactions or other factors could harm our future revenue, costs and expenses, and financial condition," and "Risk Factors—We are exposed to fluctuations in foreign currency exchange rates" in Item 1A, "Quantitative and Qualitative Disclosure about Market Risk" in Item 7A of Part II and Note 13, "Financial Instruments", to our Consolidated Financial Statements in Item 8 of Part II.

Research and Development

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Our efforts also are focused on identifying the areas where we believe we can make a unique contribution and where partnering with other leading technology companies will leverage our cost structure and maximize our customers' experiences.

Expenditures for R&D were $2.0 billion in fiscal 2021, $1.9 billion in fiscal 2020 and $1.8 billion in fiscal 2019.

Expenditures for R&D we re $2.0 billion in fiscal 2022, $2.0 billion in fiscal 2021 and $1.9 billion in fiscal 2020.

We anticipate that we will continue to have significant R&D expenditures in the future to support the design and development of innovative, high-quality products, services, and solutions to maintain and enhance our competitive position.

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In Compute, we are developing high quality next-generation compute solutions (servers, server attached options, and software) that integrate the latest industry technology, which coupled with other innovations from HPE are aligned to the requirements of our customers.

In the area of software-as-a-service we are developing a cloud-native, cloud-based server management solution to complement our existing portfolio.

In HPC & AI, we deliver high-performance compute, storage, artificial intelligence and networking systems and solutions for the most demanding workloads.

Our R&D investments are focused on developing new technologies in high-performance fabric, artificial intelligence platforms, scalable memory systems, and high-performance storage and data solutions that underpin our differentiated offerings.

We also invest in software to enable our solutions.

These investments include high-performance computing and artificial intelligence developer tools, cloud-native and scalable cluster management software, and transaction processing software.

HPC & AI also hosts an applied research group, Labs, where we invest in long term, disruptive R&D including photonics, advanced systems architectures, and artificial intelligence software that comprise a pipeline of technologies to consider for future commercialization.

All of our products are being developed with the potential to be delivered in a consumption model including integrated into our HPE GreenLake platform.

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In the Storage data management domain, we are investing in new technologies to address the demand in current and emerging markets.

Our comprehensive on-premise scalable infrastructure is transforming to utilize HPE’s leadership in Compute, Networking, and Storage to provide end-to-end cloud-native infrastructure.

This infrastructure serves as a foundation for our as-a-service offering, includes the industry-first 100% guarantee, and delivers cloud-native infrastructure tightly integrated and managed by our AI engines.

Creatively augmented by an all-inclusive as-a-service HPE GreenLake offering, HPE continues to power the edge-to-core-to-cloud data pipeline with embedded AI that delivers deep learning analytics across the full data lifecycle.

In the area of software-as-a-service, we are developing cloud-native, cloud-based server management solutions to complement our existing portfolio.

In HPC & AI, we offer integrated systems comprised of software and hardware designed to address high-performance computing, AI, data analytics, and transaction processing workloads for government and commercial customers globally.

Our R&D investments are focused on developing new technologies in high-performance networking, artificial intelligence platforms, scalable memory systems, and high-performance storage and data solutions that underpin our differentiated offerings.

We also develop high-performance computing and artificial intelligence developer tools, cloud-native and scalable cluster management software, and transaction processing software.

These R&D efforts are critical to our competitive advantage and enabled our successful delivery of the first exascale supercomputer in the world.

HPC & AI also hosts an applied research group, Hewlett Packard Labs, where we invest in long-term technological advancements, including artificial intelligence software, advanced systems architectures, and photonics.

We also collaborate with government and commercial research institutions and co-invest in many of these areas.

The work of Hewlett Packard Labs contributes to a pipeline of technologies we consider for future commercialization, including quantum computing and its relation to high performance computing.

All our products are being developed with the intention to be delivered in a consumption model, including integration into our HPE GreenLake edge-to-cloud platform.

In the Storage and data management domains, we continue to evolve the portfolio to simplify data management and introduce new data protection capabilities for hybrid cloud environments.

HPE is focused on helping customers accelerate their data-first modernization journey and embrace hybrid cloud.

By leveraging the HPE GreenLake edge-to-cloud platform for unified cloud-based management, we have transformed the way customers consume and manage storage, while offering robust data protection solutions.

We have built AI-driven self-service capabilities into our as-a-service offerings that include HPE GreenLake for Block Storage, an industry-first 100% data availability guarantee for mission critical applications;

HPE GreenLake for HCI, a cloud native storage and virtual machine management platform;

and cloud data protection.

HPE continues to power the edge-to-core-to-cloud data pipeline with embedded AI that delivers deep learning analytics across the full data lifecycle.

In Intelligent Edge, we are investing in our cloud native Edge Services Platform ("ESP"), which enables simplified operation of wired and wireless networks, together with software defined wide area network ("SD-WAN") connectivity.

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We are also investing in automation, machine learning and artificial intelligence-based network operations to optimize user experience and improve operator efficiency.

Many of these capabilities are enabled with the Aruba Central cloud service, and we are investing to integrate Aruba Central as part of the broader HPE GreenLake as-a-service offering.

In Hewlett Packard Labs, we are focused on disruptive innovation and applied research in collaboration with other HPE business groups to deliver differentiated intellectual property ("IP").

Our innovation agenda is focused on developing technologies in the areas of system architecture, networking, AI, accelerators and silicon photonics.

We also continue to invest in our silicon design capability to accelerate the development and delivery of our technology with custom integrated circuits.

Many of these capabilities are enabled with the Aruba Central cloud service, and we are investing to further integrate Aruba Central into our HPE GreenLake edge-to-cloud platform.

In Hewlett Packard Labs, in addition to the aforementioned HPC & AI-related work, we are focused on disruptive innovation and applied research in collaboration with other HPE business groups to deliver differentiated intellectual property ("IP").

Our innovation agenda is focused on developing technologies in the areas of system architecture, networking, AI,

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accelerators, quantum computing, silicon photonics, and sustainability.

We also continue to invest in our silicon design capability to accelerate the development and delivery of our technology.

For a discussion of risks attendant to our R&D activities, see "Risk Factors—If we cannot successfully execute our go-to-market strategy and continue to develop, manufacture and market innovative products, services, and solutions, our business and financial performance may suffer" in Item 1A.

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However, the pandemic resulted in a temporary disruption to the seasonal fluctuation of our business.

See "Risk Factors—Our uneven sales cycle makes planning and inventory management difficult and future financial results less predictable" in Item 1A.

We have a broad technology portfolio of enterprise IT infrastructure products, solutions and services.

See "Risk Factors—Our uneven sales cycle and supply chain disruptions make planning and inventory management difficult and future financial results less predictable" in Item 1A.

We have a broad technology portfolio of enterprise IT infrastructure products, solutions, and services which includes our as-a-service offerings.

We encounter strong competition in all areas of our business.

We compete primarily on the basis of technology, innovation, performance, price, quality, reliability, brand, reputation, distribution, range of products and services, ease of use of our products, account relationships, customer training, service and support, security, and the availability of our IT infrastructure offerings.

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The markets in which we compete are characterized by strong competition among major corporations with long-established positions and a large number of new and rapidly growing firms.

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The competitive environments in which our segments operate are described below:

The Compute and Storage businesses operate in the highly competitive enterprise data center infrastructure market, which is characterized by rapid and ongoing technological innovation and price competition.

Compute and Storage businesses operate in the highly competitive enterprise data center infrastructure market, which is characterized by rapid and ongoing technological innovation and price competition.

Our primary competitors are technology vendors, such as Dell Technologies Inc., Cisco Systems, Inc., Lenovo Group Ltd., International Business Machines Corporation ("IBM"), and NetApp Inc.

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Our competitive advantages include our broad end-to-end solutions portfolio, supported by our strong intellectual property portfolio and research and development capabilities, coupled with our global reach and partner ecosystem.

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HPC & AI predominantly operates in the market for data-intensive super-computing, analytics, and artificial intelligence.

Our primary competitors are compute technology vendors that can design and build solutions that deliver performance scalability and connectivity necessary to handle super-compute and AI workloads, including Dell Technologies Inc., Lenovo Group Ltd., and IBM.

Similar to the compute space, our strategy is to deliver superior products, high-value technology support services, and differentiated integrated solutions that combine our infrastructure, software, and services capabilities.

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For a discussion of certain risks attendant to these competitive environments, see "Risk Factors—We operate in an intensely competitive industry, and competitive pressures could harm our business and financial performance" in Item 1A.

Climate Change

Environmental Sustainability

Living Progress - Living Progress is our business strategy for creating sustainable IT solutions that meet the technology demands of the future, while advancing the way people live and work.

This strategy underpins our commitment to the environmental, social, and governance ("ESG") factors most important to stakeholders.

Our edge-to-cloud strategy helps our customers transform and digitize their business while reducing our environmental footprint.

A legacy of ESG leadership increases our competitiveness and differentiates us in the marketplace by helping our customers achieve their business objectives and sustainability goals.

The HPE Board of Directors provides oversight of our ESG strategy, practices, and policies to ensure integration with our core business strategy.

Sustainable Value Creation - Sustainability performance has become a core business discipline within HPE.

Our Living Progress program is an increasingly powerful component of our relationships with customers, and our sustainability credentials provide us with a competitive advantage, support talent acquisition and retention, and ensure ongoing access to global markets.

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We remain committed to becoming a net zero enterprise by no later than 2050, with near-term targets set across our value chain to measure our progress.

In 2021, most of our greenhouse gas emissions ("GHG") resulted from the manufacture and use of our products.

Our edge-to-cloud strategy helps our customers transform and digitize their business while reducing the environmental footprint of HPE and our customers.

A legacy of ESG leadership increases our competitiveness and differentiates us in the marketplace by helping our customers achieve not only their business objectives, but also their sustainability goals.

The HPE Board of Directors and all of its committees provide oversight of our ESG strategy, risks, practices, policies, and disclosures, to ensure integration with our core business strategy.

Sustainable Value Creation - Sustainability performance is a core business discipline within HPE.

Our Living Progress strategy and sustainability programs are key to our lasting relationships with our customers, and our sustainability credentials provide us with a competitive advantage in the market, support talent acquisition and retention, and ensure ongoing access to global markets.

In 2022, we enhanced our climate ambitions and committed to becoming a net-zero enterprise by 2040, with intermediate targets set across our value chain for 2030.

These climate targets are approved by the Science Based Target initiative and align with the latest climate science.

In 2022, the majority of our greenhouse gas emissions ("GHG") resulted from our customers' use of our products and solutions.

We recognize the opportunity to innovate technologies for a carbon-constrained world and are committed to delivering products and services that empower our customers to operate sustainably and efficiently while also gaining maximum productivity from their IT investments and reducing costs.

For instance, as-a-service delivery models can drive the reduction of our climate impact and that of our customers, by eliminating IT inefficiencies and enabling sustainable digital transformations.

HPE GreenLake, the Company's as-a-service offering, allows customers to consume IT resources and spend capital expenditures as needed, thereby reducing the energy and resource consumption of IT infrastructure through improved utilization and provisioning.

To ensure market access across the globe many of our products are certified by eco-labels such as Electronic Product Environment Assessment Tool, TCO Certified, Energy STAR, China SEPA and the China Energy Conservation Program, thus helping our customers make responsible purchasing choices.

Our HPE GreenLake edge-to-cloud platform allows customers to consume IT resources and spend capital expenditures as needed, thereby reducing the energy and resource consumption of IT infrastructure through improved utilization and provisioning.

To ensure market access across the globe and aid customers in selecting more sustainable IT solutions, many of our products are certified by eco-labels such as Electronic Product Environment Assessment Tool, TCO Certified, Energy STAR, China SEPA and the China Energy Conservation Program, thus helping our customers make responsible purchasing choices.

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Supply Chain Responsibility and Human Rights

We manage our supply chain to help reduce risk, improve product quality, achieve environmental and social goals, and improve overall performance and value creation for our customers, partners and suppliers.

Building upon the successful launch of our supply chain data management software, we have begun sharing supplier-facing GHG emissions management tools that provide company-specific emissions data, the ability to track progress toward their publicly stated emissions reduction goals, and the ability to view their own performance against that of their peers.

We also work directly with our suppliers to help them implement renewable energy projects at their manufacturing locations.

Our commitment to diversity, equity, and inclusion extends beyond our workforce and to our suppliers, as well.

We believe a diverse supply chain and equity in sourcing not only creates opportunities for underrepresented and underserved communities, but also contributes to the resiliency of our supply chain and of our communities.

Human rights principles are embedded in how we do business, and we are committed to holding our entire value chain to high ethical standards that respect such principles.

We have processes in place to enable the early detection of forced labor and have implemented due diligence procedures to monitor and help prevent human rights violations or abuses at our suppliers and in our operations.

Additionally, through our Responsible Minerals Program, we work to advance the responsible sourcing of minerals used in our products and within our supply chain.

While the HPE Board of Directors and all of its committees take an integrated, rather than siloed, approach to providing oversight of ESG matters, including environmental sustainability, supply chain responsibility, and human rights, our Nominating, Governance and Social Responsibility Committee is primarily responsible for oversight of our broader ESG strategy, initiatives, risks, policies, and disclosures.

Material Government Regulations

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Although there is no assurance that existing or future government laws applicable to our operations, services or products will not have a material adverse effect on our capital expenditures, results of operations and competitive position, we do not currently anticipate material expenditures for government regulations.

Nonetheless, as discussed below, we believe that global trade and certain ESG regulations could potentially materially impact our business.

Nonetheless, as discussed below, we believe that global trade and certain environmental regulations could potentially materially impact our business.

Our products and operations are, or may in the future be, subject to various federal, state, local, and foreign laws and regulations concerning the environment, including, among others, laws addressing the discharge of pollutants into the air and water;

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and the manufacture and distribution of chemical substances.

We proactively evaluate, and at times replace materials in our products and supply chain, taking into account, among other things, published lists of substances of concern, new and upcoming legal requirements, customer preferences and scientific analysis that indicates a potential impact to human health or the environment.

We are also subject to legislation in an increasing number of jurisdictions that makes producers of electrical goods, including servers and networking equipment, financially responsible for specified collection, recycling, treatment, and disposal of past and future covered products (sometimes referred to as "product take-back legislation").

Finally, as climate change and other ESG-related laws, regulations, treaties, and similar initiatives and programs are adopted and implemented throughout the world, we will be required to comply or potentially face market access limitations or other sanctions, including fines.

However, we believe that technology will be fundamental to finding solutions to achieve compliance with and manage those requirements, and we are collaborating with industry, business groups and governments to find and promote ways that our technology can be used to address climate change and other ESG-related issues, and to facilitate compliance with related laws, regulations and treaties.

We are committed to maintaining compliance with all environmental and ESG-related laws applicable to our operations, products and services, and to reducing our environmental impact across all aspects of our business.

We meet this commitment with a comprehensive environmental, health and safety policy;

a strict environmental management of our operations and worldwide environmental programs and services;

We are also subject to standards set by public and private entities related to sustainability issues such as energy consumption, carbon emissions, reusing or recycling.

Finally, as climate change and other environmental-related laws, regulations, treaties, and similar initiatives and programs are adopted and implemented throughout the world, we will be required to comply or potentially face market access limitations or other sanctions, including fines.

In the event our products are impacted by these laws or standards, our products could be restricted from entering certain jurisdictions or from being procured by certain governments or private companies, and we could face other sanctions, including fines.

However, we believe that technology will be fundamental to finding solutions to achieve compliance with and manage those requirements, and we are collaborating with industry, business groups and governments to find and promote ways that our technology can be used to address climate change and other environmental-related issues, and to facilitate compliance with related laws, regulations and treaties.

We are committed to maintaining compliance with all environmental and environmental-related laws applicable to our operations, products and services, and to reducing our environmental impact across all aspects of our business.

We support this commitment with a comprehensive environmental, health and safety policy;

a strict environmental management of our operations and worldwide

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environmental programs and services;

an extensive supply chain responsibility program;

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For a discussion of the risks associated with government regulations that may materially impact us, see "Regulatory Risks" within "Risk Factors" in Item 1A.

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Additional Information

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Antonio Neri 55 President and Chief Executive Officer

52 Senior Vice President, General Manager of Storage

Karros 52 Senior Vice President, Finance and Treasurer

MacDonald 53 Senior Vice President, General Manager of Compute

Alan May 63 Executive Vice President and Chief People Officer

Mottram 53 President, Intelligent Edge

Ricci 60 Senior Vice President, Controller and Principal Accounting Officer

Tarek Robbiati 57 Executive Vice President and Chief Financial Officer

Rothman 75 President and Chief Executive Officer, HPE Financial Services

Schultz 58 Executive Vice President, Chief Operating and Legal Officer

Justin Hotard 47 Senior Vice President, General Manager of High Performance Computing and Artificial Intelligence

Alan May 64 Executive Vice President and Chief People Officer

Rothman 76 President and Chief Executive Officer, HPE Financial Services

53 Executive Vice President, General Manager of Storage

Justin Hotard 48 Executive Vice President, General Manager of HPC & AI

MacDonald 54 Executive Vice President, General Manager of Compute

Mottram 54 Executive Vice President, General Manager of Intelligent Edge

Cox 45 Senior Vice President, Controller, Chief Tax Officer and Principal Accounting Officer

Karros 53 Senior Vice President, Treasurer and Investor Relations

Antonio Neri;

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Neri has served as our President and Chief Executive Officer since June 2017 and February 2018, respectively.

Neri previously served as Executive Vice President and General Manager of our Enterprise Group from November 2015 to June 2017.

Previously, he served as Executive Vice President and General Manager of our Enterprise Group from November 2015 to June 2017.

Prior to that, Mr.

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Neri served as Senior Vice President and General Manager of the HP Servers business unit from September 2013 to October 2014 and concurrently as Senior Vice President and General Manager of the HP Networking business unit from May 2014 to October 2014.

Prior to that, Mr.

Neri served as Senior Vice President and General Manager of the HP Technology Services business unit from August 2011 to September 2013 and as Vice President, Customer Services for the HP Personal Systems Group from 2007 to August 2011, having first joined HP Co.

Prior to that, he served as Senior Vice President and General Manager of the HP Technology Services business unit from August 2011 to September 2013 and as Vice President, Customer Services for the HP Personal Systems Group from 2007 to August 2011, having first joined HP Co.

Since December 2017, Mr.

Neri has served as a director of Anthem, Inc., a health insurance provider in the U.S.

From March 2012 to February 2013, Mr.

Neri served as a director of MphasiS Limited, an India-based technology company.

Senior Vice President, General Manager of Storage

Black has served as Senior Vice President and General Manager of our Storage business segment since December 2019.

Prior to that, Mr.

Black served as Senior Vice President and General Manager of Switching within our Intelligent Edge business segment from October 2018 to December 2019.

From January 2016 to October 2018, Mr.

Black served as the Vice President and General Manager of Switching within our Intelligent Edge business.

From June 2013 to January 2016, Mr.

Black was the Vice President of Engineering for the Networking group at HP Co., and later, at HPE.

Prior to that, Mr.

Black served in various roles, including Vice President of Engineering and other engineering positions at Cisco Systems from November 1999 to May 2013.

Senior Vice President, Finance and Treasurer

Karros has served as our Senior Vice President, Finance and Treasurer since November 2015.

Prior to that, Mr.

Karros served in a similar role at HP Co.

and led its Investor Relations from May 2015 to October 2015.

Karros previously served as Principal and Managing Director of Research for Relational Investors LLC, an investment fund, from 2001 to May 2015 and concurrently as a director of PMC-Sierra, a semiconductor company, from August 2013 to May 2015 and as a director of InnerWorkings, Inc.

from August 2019 to October 2020.

Senior Vice President, General Manager of Compute

MacDonald has served as Senior Vice President and General Manager of our Compute business segment since February 2020.

Prior to that, Mr.

MacDonald served as Senior Vice President and General Manager of the Compute Solutions group of the then Hybrid IT business segment, from October 2018 to February 2020.

MacDonald previously served as Vice President and General Manager of BladeSystem from August 2015 to October 2020, having first joined HP Co.

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Executive Vice President and Chief People Officer

May has served as our Executive Vice President, Chief People Officer since June 2015.

Before joining Hewlett Packard Enterprise, Mr.

May served as Vice President, Human Resources at Boeing Commercial Aircraft, a division of The Boeing Company, from April 2013 to June 2015.

Prior to that, Mr.

May served as Vice President, Human Resources for Boeing Defense, Space and Security at Boeing from April 2011 to June 2015 and as Vice President, Compensation, Benefits and Strategy at Boeing from August 2007 to April 2011.

May has also served in senior human resources roles at Cerberus Capital Management and PepsiCo.

He serves as a Trustee for the American Foundation for the Blind and is on the Board of Governors for the San Francisco Symphony.

President, Intelligent Edge

Mottram has served as the President of our Intelligent Edge business since June 2021.

Prior to that, Mr.

Mottram served as Senior Vice President and General Manager of the Communications Technology Group from April 2019 to June 2021.

Before joining Hewlett Packard Enterprise, he served as the Chief Revenue Officer of Zayo Group, a communications infrastructure provider, from November 2017 to February 2019.

Prior to that, Mr.

Mottram served as Director of the Enterprise Business Unit of Vodafone from May 2014 to November 2017, the Chief Executive Officer of Hong Kong CSL from September 2012 to May 2014, and Executive Director of Global Sales at Telstra International from September 2010 to September 2012, as well as a variety of different operational roles at other telecommunications companies.

Senior Vice President, Controller and Principal Accounting Officer

Ricci has served as our Senior Vice President, Controller and Principal Accounting Officer since November 2015.

Prior to that, Mr.

Ricci performed a similar role at HP Co.

from April 2014 to November 2015.

Previously, Mr.

Ricci served as Controller and Principal Accounting Officer at HP Co.

on an interim basis from November 2013 to April 2014.

Prior to that, Mr.

Ricci served as Vice President, Finance for several of HP Co.'s organizations, including Technology and Operations from May 2012 to November 2013, Global Accounts and HP Financial Services from March 2011 to May 2012, and HP Software from March 2009 to March 2011.

Neri has served as a director of Elevance Health, Inc.

(formerly Anthem, Inc.), a health insurance provider in the U.S.

From March 2012 to February 2013, he served as a director of MphasiS Limited, an India-based technology company.

Tarek Robbiati;

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Robbiati has served as our Executive Vice President, Chief Financial Officer since September 2018.

Before joining Hewlett Packard Enterprise, Mr.

Robbiati served as Chief Financial Officer of Sprint Corporation from August 2015 to February 2018.

Before joining Hewlett Packard Enterprise, he served as Chief Financial Officer of Sprint Corporation from August 2015 to February 2018 where he was responsible for all finance functions as well as mergers and acquisitions and business development.

Robbiati previously served as Chief Executive Officer and Managing Director of FlexiGroup Limited in Australia from January 2013 to August 2015.

Prior to that, from December 2009 to December 2012, Mr.

Robbiati was Group Managing Director and President of Telstra International Group in Hong Kong and Executive Chairman of Hong Kong CSL Limited ("CSL"), a subsidiary of Telstra Corporation Limited.

From July 2007 to May 2010, Mr.

Robbiati served as the Chief Executive Officer of CSL in Hong Kong.

President and Chief Executive Officer, HPE Financial Services

Rothman has served as President and Chief Executive Officer of our Financial Services business segment, our IT investment and financing subsidiary, since November 2015.

Prior to that, Mr.

Rothman served in a similar role at HP Co.

from May 2002 to November 2015.

Prior to joining HP Co., Mr.

Rothman was President and Chief Executive Officer of Compaq Financial Services Corporation from January 1997 to April 2002.

Prior to that, from December 2009 to December 2012, he was Group Managing Director and President of Telstra

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International Group in Hong Kong and Executive Chairman of Hong Kong CSL Limited ("CSL"), a subsidiary of Telstra Corporation Limited.

From July 2007 to May 2010, he served as the Chief Executive Officer of CSL in Hong Kong.

Earlier in his career, he served as EVP & Head of Corporate Finance for Orange Plc and also held leadership positions at global credit insurer Atradius, investment bank Lehman Brothers and the global consultancy Arthur Andersen (now Accenture).

Executive Vice President, Chief Operating and Legal Officer

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from September 2008 to April 2012.

Prior to joining HP Co., Mr.

Before joining HP Co., Mr.

Schultz was a partner in the litigation practice at Morgan, Lewis & Bockius LLP, a law firm, from March 2005 to September 2008, where, among other clients, he supported HP Co.

as external counsel on a variety of litigation and regulatory matters.

Executive Vice President and Chief People Officer

May has served as our Executive Vice President, Chief People Officer since June 2015.

At Hewlett Packard Enterprise, he leads a global HR function, driving business growth and transformation through employee engagement;

diversity, equity and inclusion;

talent management;

and culture development.

Before joining Hewlett Packard Enterprise, he served as Vice President, Human Resources at Boeing Commercial Aircraft, a division of The Boeing Company, from April 2013 to June 2015.

Prior to that, Mr.

May served as Vice President, Human Resources for Boeing Defense, Space and Security at Boeing from June 2010 to April 2013 and as Vice President, Compensation, Benefits and Strategy at Boeing from August 2007 to June 2010.

May has also held senior human resources roles at Cerberus Capital Management and PepsiCo.

He serves on the Board of Governors for the San Francisco Symphony.

President and Chief Executive Officer, HPE Financial Services

Rothman has served as President and Chief Executive Officer of our Financial Services business segment, our IT investment and financing subsidiary, since November 2015.

Prior to that, he served in a similar role at HP Co.

from May 2002 to November 2015.

Prior to joining HP Co., Mr.

Rothman was President and Chief Executive Officer of Compaq Financial Services Corporation from January 1997 to April 2002.

Executive Vice President, General Manager of Storage

Black has served as Executive Vice President and General Manager of our Storage business segment since March 2022 and as Senior Vice President and General Manager of the same business segment from December 2019 to March 2022.

Prior to that, Mr.

Black served as Senior Vice President and General Manager of Switching within our Intelligent Edge business segment from October 2018 to December 2019.

From January 2016 to October 2018, Mr.

Black served as the Vice President and General Manager of Switching within our Intelligent Edge business.

From June 2013 to January 2016, Mr.

Black was the Vice President of Engineering for the Networking group at HP Co., and later, at HPE.

Prior to that, Mr.

Black served in various roles, including Vice President of Engineering and other engineering positions at Cisco Systems from November 1999 to May 2013.

Justin Hotard;

Senior Vice President, General Manager of HPC & AI

Hotard has served as our Senior Vice President and General Manager of HPC & AI global business group since March 2021.

Previously, he served as Senior Vice President, Corporate Transformation from September 2020 to March 2021, where he led our transformation efforts to accelerate our pivot to as-a-service offerings.

Executive Vice President, General Manager of HPC & AI

Hotard has served as Executive Vice President and General Manager of our HPC & AI global business group, including Hewlett Packard Enterprise Labs, our applied research group, since March 2022 and Senior Vice President and General Manager of the same group from March 2021 to March 2022.

Prior to that, he served as Senior Vice President, Corporate Transformation from September 2020 to March 2021, where he led our transformation efforts to accelerate our pivot to as-a-service offerings.

Prior to that, Mr.

Hotard served as President and Managing Director of HPE Japan from October 2019 to September 2020, as Senior Vice President and General

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Manager of the Compute Global Business Unit from January 2017 to October 2019 and as Vice President of Strategy, Planning and Operations in the Data Center Infrastructure Group from August 2015 to January 2017.

Hotard served as President and Managing Director of HPE Japan from October 2019 to September 2020, as Senior Vice President and General Manager of the Compute Global Business Unit from January 2017 to October 2019 and as Vice President of Strategy, Planning and Operations in the Data Center Infrastructure Group from August 2015 to January 2017.

Before joining Hewlett Packard Enterprise, Mr.

Hotard was President of NCR Small Business from July 2013 to November 2014 and Vice President of Corporate Development of NCR Corporation from July 2012 to August 2013.

Hotard was President of NCR Small Business from July 2013 to November 2014 and Vice President of Corporate Development of NCR Corporation from July 2012 to July 2013.

Prior to that, Mr.

Hotard served in various corporate development and operational roles at Symbol Technologies and Motorola, Inc.

Executive Vice President, General Manager of Compute

MacDonald has served as Executive Vice President and General Manager of our Compute business since March 2022 and as Senior Vice President and General Manager of our Compute business from February 2020 to March 2022.

Prior to that, he served as Senior Vice President and General Manager of the Compute Solutions group of the then Hybrid IT business

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segment, from November 2018 to February 2020.

MacDonald previously served as Vice President and General Manager of BladeSystem from August 2015 to October 2018, having first joined HP Co.

Executive Vice President, General Manager of Intelligent Edge

Mottram has served as Executive Vice President and General Manager of our Intelligent Edge business since March 2022.

Previously, he served as the President of our Intelligent Edge business from June 2021 to March 2022.

Prior to that, Mr.

Mottram served as Senior Vice President and General Manager of the Communications Technology Group from April 2019 to June 2021.

Before joining Hewlett Packard Enterprise, he served as the Chief Revenue Officer of Zayo Group, a communications infrastructure provider, from November 2017 to February 2019, where he was responsible for all customer-facing functions.

Prior to that, Mr.

Senior Vice President, Controller, Chief Tax Officer and Principal Account Officer

Cox has served as our Senior Vice President, Controller, Chief Tax Officer and Principal Accounting Officer since July 2022.

Previously, he served as Senior Vice President, Global Tax and Head of Products and Services Finance from May 2021 to July 2022.

Prior to that, Mr.

Cox served as Senior Vice President, Global Tax, Financial Planning and Analysis, and Global Functions Finance from November 2018 to May 2021, Senior Vice President, Global Tax and Internal Audit from September 2017 to November 2018, Senior Vice President, Global Tax from September 2012 to September 2017 and Vice President and Senior Tax Counsel of HP Tax Research and Planning and APJ Taxes from 2008 to 2012.

Prior to joining HP Inc.

Cox was Senior Tax Counsel for Electronic Data Systems.

Senior Vice President, Treasurer and Investor Relations

Karros has served as our Senior Vice President, Treasurer and Investor Relations since May 2022.

Previously, he served as our Senior Vice President, Finance and Treasurer from November 2015 to May 2022.

Prior to that, Mr.

Karros served in a similar role at HP Co., leading its Treasury and Investor Relations from May 2015 to October 2015.

He also has served as the Executive Chairman of H3C Technologies since August 2022.

Karros previously served as a director of InnerWorkings, Inc.

from August 2019 to October 2020, as a director of PMC-Sierra, a semiconductor company, from August 2013 to May 2015, and as Principal and Managing Director of Research for Relational Investors LLC, an investment fund, from 2001 to May 2015.

Available Information

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Investor Relations

11445 Compaq Center West Drive

Houston, Texas 77070

1701 East Mossy Oaks Road,

Spring, Texas 77389

http://investors.hpe.com/financial/requested-printed-reports

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business