What changed in this filing

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Item 1. Business

2023-12-22 compared with 2022-12-08 · 192 added, 190 removed, 333 unchanged (53% of the section changed)

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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"), 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, 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.

Over the last several years, new megatrends around edge, cloud, data, and artificial intelligence (“AI”) 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.

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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.

Finally, HPE is seeing an immense demand shift in AI as customers realize the fundamental potential of the technology to deliver business transformation.

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

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

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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.

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 transformations.

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

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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.

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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.

Our solutions across connectivity, cloud, and data are delivered as-a-service (“aaS”) 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.

We recognize the AI market will be driven by computational capability, data-intensive workloads, and the need for specialized architecture;

thus, we are targeting three areas:

supercomputing, AI infrastructure, and AI platform software.

We believe that we are differentiated from our competition in the ability to capture significant value from the growing AI market through our intellectual property portfolio, trusted expertise, and long-term sustained market leadership in supercomputing.

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Human Capital Resources

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We believe it not only helps guide our contribution to society, but also makes good business sense.

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.

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

Our company always strives to be an engine of innovation, and our approximately 62,000 employees as of October 31, 2023, are proud of the ways our technology enables our customers to achieve meaningful outcomes like curing disease, modernizing farming, addressing 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 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 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.

Building a Vibrant Culture:

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

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

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.

Our empowered and engaging culture is making HPE a destination for talent while driving innovation and excellence for our customers.

Diversity, Equity, and Inclusion:

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 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.

HPE has remained committed to its focus on internalizing 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, our talent/performance programs, and our work environment.

Through such efforts, we aim to foster a collaborative, inclusive, and inspiring experience for all our team members and to make HPE a destination for talent while driving high-performance and growth opportunities for our team members, and innovation and excellence for our customers.

In the midst of the above, we continually seek feedback from our team members to better understand and improve their experiences and identify opportunities to continually strengthen our culture.

Our most recent global engagement survey shows how these intentional efforts are making a difference, with an 86% response rate and our overall Employee Engagement Index, an index designed to capture team member engagement, measuring 83%.

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

Diversity, Equity, and Inclusion (“DEI”) - We are committed to creating an unconditionally inclusive workplace and to capturing 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 fuel innovation, drive transformational changes, and be a force for good.

Annual aspirational goals are set to drive consistent representation in the recruiting pipeline in line with market availability across all demographics.

At the close of fiscal 2023, the representation of worldwide female executives in our workforce had increased 1.9 percentage points since the prior year, with increased representation at every level in worldwide female team members.

We also increased our year-over-year representation of underrepresented minorities in the U.S.

by 2.3 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 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, setting transparent goals, driving accountability, continuously assessing, developing, and advancing talent, and advancing a leadership-driven talent strategy.

The DEI index within our annual global engagement survey continued to reveal strong engagement scores across our ethnically diverse team members .

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

Our Board, Chief Executive Officer (“CEO”), and Executive Committee are expected to, and do in fact, model high standards for DEI and are leading sustainable change through strong governance and oversight.

Talent - We invest heavily in an effort to attract, develop, and retain the best talent.

We are committed to developing team members at all stages of their careers, and 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.

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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.

Pay Equity - 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 pay team members in similar roles and locations 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.

As a result of our efforts, our most recent pay equity review demonstrated that we have achieved pay parity for base compensation and bonus targets between male and female team

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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:

This global initiative, which was launched in 2019, is an important example of how HPE is investing in our culture and creating a team member experience that makes HPE a destination of choice for the best talent in the industry.

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.

Work That Fits Your Life - This global initiative, which was launched in 2019, is an important example of how HPE is investing in our culture and creating a team member experience that aims to make HPE a destination of choice for the best talent in the industry.

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” that allows team members a full Friday off four times per year to focus on their well-being.

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.

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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:

HPE requires a uniquely talented workforce and is committed to providing total rewards that are market-competitive and performance based, driving innovation and operational excellence.

Additionally, we offer a hybrid work environment for the majority of our team members, encouraging two days in the office per week for collaboration.

Total Rewards - HPE requires a uniquely talented workforce and is committed to providing total rewards that are market-competitive and performance based, designed to drive innovation and operational excellence.

Our compensation programs, practices, and policies reflect our commitment to reward short- and long-term performance that aligns with, and drives stockholder value.

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.

Board Oversight:

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

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;

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

Our team is energized and more engaged than ever and will enable our ability to pivot and grow, which will, in turn, power the next chapter at Hewlett Packard Enterprise.

We believe that a workforce that is energized and more engaged will fuel our ability to pivot and grow, which will, in turn, power the next chapter at Hewlett Packard Enterprise.

Our Business Segments, Products and Services

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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 2023 - Compute products, Intelligent Edge products, HPC & AI products

• 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

The Company has one customer which represented 11% of the Company's total net revenue in fiscal 2023, primarily within the Intelligent Edge and Compute segments.

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.

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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.

HPE ProLiant servers are the compute foundation for the fastest growing workloads in the industry including AI Inferencing, hyperconverged infrastructure (“HCI”), virtual workspaces, and data management.

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 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, research institutions and commercial customers globally.

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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 HPC portfolio of products includes HPE Cray EX, HPE Cray XD (formerly known as 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.

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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.

Our solutions are focused on enabling customers to develop and deploy AI models, such as Large Language Models (“LLMs”) across training, tuning, and inferencing.

These include a software stack needed to prepare data for AI models and then to train those 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.

We also offer most of our solutions aaS through the HPE GreenLake edge-to-cloud platform, including HPE GreenLake for LLMs.

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.

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.

For a discussion of certain risks related to contracts with government entities, see Item 1A, "Risk Factors—Failure to comply with government contracting regulations could adversely affect our business and results of operations".

For a discussion of certain risks related to contracts with government entities, see “Risk Factors—Contracts with federal, state, provincial, and local governments are subject to a number of challenges and risks that may adversely impact our business” in Item 1A.

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 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 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.

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.

Customers can store and serve their data with speed and high availability to applications, further 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.

Storage provides data storage and data management offerings, which include cloud-native primary storage with the HPE Alletra Storage portfolio, self-service private cloud on-demand with HPE GreenLake for Private Cloud Business Edition;

data storage and data management services with HPE GreenLake for Block Storage, and HPE GreenLake for File Storage;

disaster recovery and ransomware recovery with Zerto;

data protection services with HPE GreenLake for Backup and Recovery;

and big data solutions running on the family of HPE Alletra 4000 Data Storage Servers.

Storage also provides solutions for unstructured data and analytics workloads, along with traditional tape, disk products, and storage networking.

Storage also provides data-driven intelligence with HPE InfoSight and HPE CloudPhysics, along with operational and support services and data management solutions delivered 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, 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 Intelligent Edge business is comprised of a portfolio of secure edge-to-cloud solutions operating under the Aruba brand that includes wired and wireless local area network (“LAN”), campus, branch, and data center switching, software-defined wide-area networking, network security, and associated services that enable secure connectivity for businesses of any size.

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

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

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

The HPE Aruba Networking software and services portfolio includes cloud-based management, network management, network access control, software-defined wide-area networking, network security, analytics and assurance, location services software, and professional and support services, as well as aaS 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.

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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, and complex solution engagement capabilities;

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

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

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;

the Communications and Media Solutions business (“CMS”), which primarily offers software and related services to the telecommunications industry and includes Athonet, which provides private mobile core networks to enterprises and communication services providers;

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

OpsRamp which provides a software-as-a-service platform for managed service providers and enterprise IT teams to monitor and manage their cloud and on-premises (“hybrid”) infrastructure;

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

Segment Realignments

Effective November 1, 2023, in order to align our segment financial reporting more closely with our current business structure, we established a new reportable segment, Hybrid Cloud, which includes our historical Storage segment, HPE GreenLake Flex Solutions (which provides flexible as-a-service IT infrastructure through the HPE GreenLake edge-to-cloud platform and was previously reported under Compute and HPC & AI segments), Private Cloud, and Software (previously reported under Corporate Investments and Other segment).

Additionally, certain products and services reported in the financial results for the HPC & AI segment through the end of fiscal 2023 will be reported in the Compute and Hybrid Cloud segments, and the recently acquired Athonet business and certain components of our CMS business reported in the financial results for Corporate Investments and Other through the end of fiscal 2023 will be reported in the Intelligent Edge segment.

Beginning in the first quarter of fiscal 2024, we will report our results under the realigned six reportable segments.

Our Strengths

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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.

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 Managed Services offerings.

• Comprehensive portfolio.

We have a distinctive and industry leading portfolio of edge-to-cloud solutions and unique capabilities to help accelerate our customers' digital transformations.

We have a distinctive and industry leading portfolio of edge-to-cloud solutions and capabilities to help accelerate our customers' digital transformations.

We combine our software-defined infrastructure and services capabilities to provide what we believe is the strongest portfolio of enterprise solutions in the IT industry.

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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, 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.

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capital and operating expenses tied to infrastructure over-provisioning.

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

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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 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.

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

• Custom financial solutions.

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.

Through our FS 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.

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This has resulted in a combined go-to-market model, in which we have a direct sales presence in a number of countries, while we sell and deliver our products, solutions, and services through a channel-only model in the remaining countries.

In those countries where we have a direct sales presence, we typically assign an account manager to manage relationships across our business with large enterprise customers as well as with large public sector accounts.

In those countries where we have a direct sales presence, we follow a bifurcated sales operational model with separate go-to-market routes for high-velocity, transactional hardware sales, on the one hand and

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for services and solutions, on the other hand.

Also, we typically assign an account manager to manage relationships across our business with large enterprise customers as well as with large public sector accounts.

The account manager is supported by a team of specialists with product and services expertise.

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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

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high volumes of basic product configurations.

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

While availability for many components is now recovering, some shortages are nevertheless anticipated to persist, primarily as a result of new demand for certain components arising in more diverse sectors without corresponding capacity investments by suppliers to meet the new demand.

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

We intend to take additional inventory actions as appropriate in alignment to the market demand, and plan to continue leveraging 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.

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.

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

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

The elevated order book levels we experienced in fiscal 2022 have generally been declining throughout fiscal 2023, as supply chain constraints eased (though challenges still remain) and demand softened unevenly across our portfolio (as a result of improving supply chain dynamics and as customers have been digesting their prior larger orders).

Mild improvements to industry-wide supply constraints have helped to ease certain supply chain challenges we encountered in the recent past, including the increased availability of supply and lower material and logistics costs.

Material cost trends are dependent on the strength or weakness of actual end-user demand and supply dynamics, which will continue to evolve and ultimately impact the translation of the cost

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environment to our pricing actions and, consequently, our operating results.

Logistics costs continued to decrease from previously elevated levels as a result of declines in both expedited shipments and overall rate costs in the freight network.

International

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Approximately 64% of our overall net revenue in fiscal 2023 came from sales outside the United States.

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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.

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 of Part I, “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 we re $2.0 billion in fiscal 2022, $2.0 billion in fiscal 2021 and $1.9 billion in fiscal 2020.

Expenditures for R&D were $2.3 billion in fiscal 2023 and $2.0 billion in fiscal 2022 and 2021, respectively.

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 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.

In HPC & AI, our R&D investments are focused on developing new technology in high-performance networking, liquid cooling, artificial intelligence platforms and its application to LLMs, 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 and software, 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.

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

The ESP platform complements a broad range of network devices in our unified network infrastructure layer with security capabilities that enable us to identify and authenticate users and IoT endpoints, to enforce policy, and finely segment traffic based on context to contain security threats.

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 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.

All our products are being developed to be delivered in a consumption model, including integration into our HPE GreenLake edge-to-cloud platform, such as the HPE GreenLake for LLMs offering.

In the Storage and data management domains, we continue to evolve the portfolio to bring the cloud operational experience to customers across their hybrid cloud deployment.

HPE is focused on helping customers simplify how they manage storage and protect their data and workloads on-premises, at the edge, and in the public cloud.

In fiscal 2023, we have expanded our storage portfolio to offer software-defined disaggregated storage services that include HPE GreenLake for Block Storage and HPE GreenLake for File Storage.

With an increased emphasis on simplifying day-to-day management and cloud data protection, HPE GreenLake for Private Cloud Business Edition delivers unified virtual machine-to-infrastructure management for both on-

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premises and public cloud environments.

With the addition of HPE GreenLake for Disaster Recovery alongside HPE GreenLake for Backup and Recovery, customers have access to a complete suite of offerings providing cloud data protection.

In Intelligent Edge, we are investing in a broad portfolio of networking and security capabilities, addressing remote-user, branch, campus, data-center, and cloud use-cases.

We are expanding our wireless access portfolio to include 4G, LTE, and 5G cellular to complement our leadership position in Wi-Fi, Bluetooth, and Zigbee, with an emphasis on hybrid deployments.

We have expanded our security investments with the recent acquisition of Security Service Edge provider Axis Security and are integrating security with our software-defined wide area network (“SD-WAN”) capabilities to deliver a single vendor Secure Access Services Edge solution.

Within our Ethernet Switch portfolio, we are investing in new Data Center Networking platforms and features to expand our total addressable market within our core market.

We are leveraging the HPE GreenLake edge-to-cloud platform to provide consistent access to our aaS capabilities and to enable new network-as-a-service business models.

We are also investing in automation, machine learning, and AI-based network operations to optimize user experience and improve operator efficiency, as exemplified by our cloud-native Aruba Central cloud service that provides manageability for our entire portfolio, including Wireless LAN, Campus & Data Center Switches, and SD-Branch.

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

For a discussion of risks attendant to our R&D activities, see “Risk Factors—If we cannot successfully execute our go-to-market strategy, including our ongoing transition to an aaS consumption-based business model, our business, and financial performance may suffer” in Item 1A.

Our general policy is to seek patent protection for those inventions likely to be incorporated into our products and services or where obtaining such proprietary rights will improve our competitive position.

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For example, European sales are often weaker in the summer months.

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

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.

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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.

Most product life cycles are relatively short, and to remain competitive we must develop new products and services, continuously enhance our existing products and services and compete effectively on the basis of the factors listed above, among others.

Most product life cycles are relatively short, and to

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remain competitive we must develop new products and services, continuously enhance our existing products and services and compete effectively on the basis of the factors listed above, among others.

In addition, we compete with many of our current and potential partners, including OEMs that design, manufacture, and market their products under their own brand names.

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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.

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

In certain regions, we also experience competition from local companies and from generically branded or “white-box” manufacturers.

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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., IBM, Fujitsu Network Communications, Inc., and Atos Information Technology Incorporated.

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., Super Micro Computer, Inc,, Lenovo Group Ltd., IBM, Fujitsu Network Communications, Inc., and Atos Information Technology Incorporated.

In our software platform for AI model development and deployment, we both compete and cooperate with cloud service providers and start-up companies that deliver platforms for AI model training, tuning, and inferencing.

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.

Our competitive advantages include our deep expertise and capabilities designing and delivering these solutions, 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.

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

Intelligent Edge operates in the highly competitive networking and connectivity infrastructure market, which is characterized by rapid and ongoing technological innovation and price competition.

Our primary competitors are technology vendors, such as Cisco Systems, Inc., Extreme Networks, Inc., Juniper Networks, Inc., and Arista Networks Inc.

Our primary competitors are technology vendors, such as Cisco Systems, Inc., Extreme Networks, Inc., Arista Networks Inc, Palo Alto Networks, Fortinet, and Juniper Networks, Inc.

Our strategy is to deliver superior enterprise wired and wireless local-area networking components and software, high-value technology support services, and differentiated integrated solutions that combine our infrastructure, software, and services capabilities.

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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.

The HPE Board of Directors, including through its committees, provides oversight of our ESG strategy, risks, practices, policies, and disclosures, to support 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.

Our Living Progress strategy and sustainability programs are key to our lasting relationships with our customers, and our sustainability credentials

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provide us with a competitive advantage in the market, support talent acquisition and retention, and enable ongoing access to global markets.

HPE has 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.

Our commitment is supported by our Net-Zero Roadmap, which defines the levers we plan to prioritize to enable us to deliver on our near- and long-term carbon emissions reduction targets and outlines key assumptions with respect to our reduction targets.

In 2023, 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.

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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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 reduce the carbon footprints of their IT estates while also gaining maximum productivity from their IT investments and reducing costs.

For instance, in 2023, HPE launched a portfolio of new and enhanced sustainable IT services to enable IT to run more sustainably from the data center to the workload.

To enable 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.

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.

Building upon the successful launch of our supply chain data management software, we have granted access to suppliers representing 80% by production spend to visualize their company-specific emissions data and the ability to track progress toward their publicly stated emissions reduction goals.

In 2023, we participated in the Responsible Business Alliance pilot of an Environmental Management Tool (“EMT”) to request primary GHG emissions data from a small number of our suppliers using third-party software.

The EMT enables all suppliers to disclose their GHG emissions, reduction targets, and reporting and verification statuses to their customers in a consolidated, industry-standard survey, increasing ESG transparency, maturity, and data availability.

We are conscious of the importance of the responsible use of our products.

In an effort to prevent intended and unintended harm, we continue to consider who purchases our offerings and how they are used by, among other things, limiting features, including responsible use clauses, monitoring for risk of alternate end uses, and promoting deployment of AI with safeguards, such as user training and ongoing checks and refinement to mitigate bias and improve accuracy.

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

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

We are also committed to the responsible and ethical development and deployment of new technologies to advance how we live and work, and we continue to build on our existing responsible development work, particularly in relation to AI.

We have an executive level AI Ethics Responsibility Committee and an operational AI Ethics Working Group, through which we aim to align the development, deployment, and use of AI with HPE's AI Ethical Principles, promoting privacy-enabled and secure, human focused, inclusive, robust, and responsible use of AI.

In 2022, we refined our approach to assessing ethical AI and rolled out AI Ethical Principles training.

In 2023, we further advanced this initiative by launching three new sub-committees to help us operationalize our principles for:

Products (AI we develop), Processes (AI we source to use), and Partnerships (AI we source to incorporate into our solutions).

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.

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Our business activities are subject to various federal, state, local, and foreign laws and our products and services are governed by a number of rules and regulations.

Costs and accruals incurred to comply with these governmental regulations are presently not material to our capital expenditures, results of operations and competitive position.

Costs and accruals incurred to comply with these governmental regulations are

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presently not material to our capital expenditures, results of operations and competitive position.

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.

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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;

supply chain due diligence, and sustainability, environment and emissions-related reporting;

the management, movement, and disposal of hazardous substances and wastes and the clean-up of contaminated sites;

product safety, such as chemical composition, packaging and labeling;

product compliance and safety, such as repairability, chemical composition, packaging and labeling;

energy consumption of our products and services;

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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").

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

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.

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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;

We support this commitment with a range of comprehensive policies, including relating to environmental, health and safety, climate, water, and electronic waste;

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

an extensive supply chain responsibility program;

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We continue to support open trade policies that recognize the importance of integrated cross-border supply chains that will continue to contribute to the growth of the global economy and measures that standardize compliance for manufacturers to ensure that products comply with safety and security requirements.

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

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

Additional Information

Itanium is a trademark of Intel Corporation or its subsidiaries.

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Information about our Executive Officers

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Antonio Neri 56 President and Chief Executive Officer

Tarek Robbiati 57 Executive Vice President and Chief Financial Officer

Schultz 59 Executive Vice President, Chief Operating and Legal Officer

Alan May 65 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

Gold 65 Executive Vice President, President and Chief Executive Officer, HPE Financial Services

Fidelma Russo 60 Executive Vice President, Chief Technology Officer, and General Manager of Hybrid Cloud

Justin Hotard 49 Executive Vice President, General Manager of HPC & AI

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Mottram 55 Executive Vice President, General Manager of Intelligent Edge

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

Cox 46 Senior Vice President, Chief Financial Officer, Corporate Controller, Chief Tax Officer, and Principal Accounting Officer

Karros 54 Senior Vice President, Treasurer and Investor Relations

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

Tarek Robbiati;

Executive Vice President and Chief Financial Officer

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

May has also served in 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.

Executive Vice President, President and Chief Executive Officer, HPE Financial Services

Gold has served as Executive Vice President, President and Chief Executive Officer of HPE Financial Services since February 2023.

In this role, she leads HPE Financial Services, the global financing and asset management organization that supports HPE’s edge-to-cloud strategy, and helps customers and partners accelerate their transformation.

From May 2018 to February 2023, she served as the Senior Vice President and Chief Operating Officer of HPE Financial Services, and from

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August 2015 to May 2018, as the Vice President Global Accounts, Sales, Marketing and Managing Director Asset Management of HPE Financial Services.

Prior to that, Ms.

Gold held a variety of leadership roles at HP Co., Compaq Financial Services, and AT&T, and was one of the founding members of AT&T Capital Corp.

Fidelma Russo;

Executive Vice President, Chief Technology Officer and General Manager of Hybrid Cloud

Russo has served as our Executive Vice President, General Manager of our Hybrid Cloud business segment, and Chief Technology Officer since November 2023.

Prior to that, Ms.

Russo served as Executive Vice President, Chief Technology Officer from September 2021 to October 2023.

Prior to joining Hewlett Packard Enterprise, Ms.

Russo was Senior Vice President and General Manager of the Cloud Services business unit at VMware from May 2020 to September 2021, the Chief Technology Officer and Executive Vice President of Global Technology & Operations at Iron Mountain, Inc.

from March 2017 to May 2020, and Senior Vice President and General Manager of Enterprise Storage and Software at EMC Corp.

from January 2011 to January 2017.

Prior to such roles, she also held several leadership positions at HP Co.

and Sun Microsystems, Inc.

Justin Hotard;

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.

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

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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.

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

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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, 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.

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

Cox has served as our Senior Vice President, Chief Financial Officer, Corporate Controller, Chief Tax Officer, and Principal Accounting Officer since August 2023.

Prior to that, he served as our Senior Vice President, Corporate Controller, Chief Tax Officer, and Principal Accounting Officer from July 2022 to August 2023.

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

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Cox was Senior Tax Counsel for Electronic Data Systems.

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Senior Vice President, Treasurer and Investor Relations

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Available Information

Our website is located at www.hpe.com.

Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed or furnished pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, are available on our website at http://investors.hpe.com, as soon as reasonably practicable after we electronically file such reports with, or furnish those reports to, the Securities and Exchange Commission.

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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