| Table 2 | HP Imaging & Printing | Aug-05 | ||||||||
| (Fiscal year end: Oct 31) | ||||||||||
| 2005e | % of | Change | 2004 | % of | Change | 2003 | % of | |||
| ($ Mill) | Rev | 05/04 | ($ Mill) | Rev | 04/03 | ($ Mill) | Rev | |||
| _ | _ | _ | _ | _ | _ | _ | _ | _ | _ | _ |
| Revenue | 30% | 30% | 31% | |||||||
| Business Segments (est) | ||||||||||
| Supplies | $13,210 | 52.0% | 4.0% | $12,700 | 52.5% | 10.1% | $11,540 | 51.0% | ||
| Business | $7,370 | 29.0% | 8.7% | $6,780 | 28.0% | 3.4% | $6,560 | 29.0% | ||
| Consumer | $4,700 | 18.5% | 2.2% | $4,600 | 19.0% | 4.3% | $4,410 | 19.5% | ||
| Other | $120 | 0.5% | 0.8% | $119 | 0.5% | 5.3% | $113 | 0.5% | ||
| Total Revenue | $25,400 | 100.0% | 5.0% | $24,199 | 100.0% | 7.0% | $22,623 | 100.0% | ||
| 3Q05 Actual | $5,913 | 4.7% | $5,648 | |||||||
| Costs | ||||||||||
| Cost of Revenue | $16,510 | 65.0% | 6.6% | $15,490 | 64.0% | 7.0% | $14,480 | 64.0% | ||
| One-time Charges | $271 | |||||||||
| Total Costs | $16,781 | 66.1% | 8.3% | $15,490 | 64.0% | 7.0% | $14,480 | 64.0% | ||
| Gross Profit/Margin | $8,619 | 33.9% | -1.0% | $8,709 | 36.0% | 7.0% | $8,143 | 36.0% | ||
| Expenses | ||||||||||
| Sales, General & Marketing | $3,560 | 14.0% | 5.3% | $3,380 | 14.0% | 15.0% | $2,940 | 13.0% | ||
| Restructuring Charges (apportioned to IP) | $35 | $248 | ||||||||
| Research & Development | $1,520 | 6.0% | 4.8% | $1,450 | 6.0% | 6.6% | $1,360 | 6.0% | ||
| Total Expenses | $5,080 | 20.0% | 4.4% | $4,865 | 20.1% | 7.0% | $4,548 | 20.1% | ||
| Operating Profit (Loss) | $3,539 | 13.9% | -7.9% | $3,844 | 15.9% | 6.9% | $3,595 | 15.9% | ||
| as reported | $3,847 | 15.9% | 7.0% | $3,596 | 15.9% | |||||
| 3Q05 Actual | $771 | 13.0% | -7.8% | $836 | 14.8% | |||||
| Other Income (Loss) | ($5) | -0.0% | -46.7% | ($9) | -0.0% | 279.0% | ($2) | -0.0% | ||
| Income (Loss) Before Tax | $3,534 | 13.9% | -7.9% | $3,838 | 15.9% | 6.8% | $3,593 | 15.9% | ||
| Income Tax (Benefit) | $589 | 16.7% | -7.9% | $639 | 16.7% | 47.2% | $434 | 12.1% | ||
| Net Income (Loss) | $2,945 | 11.6% | -7.9% | $3,198 | 13.2% | 1.3% | $3,159 | 14.0% | ||
| Earnings per share (basic) | 2.91 | 1.01 | 1.10 | 1.09 | ||||||
| Pro Forma Valuation | ||||||||||
| P/E Ratio | Rev Ratio | Market Cap (est.) | Spin-off | Actual | ||||||
| P/E | Rev | Combined | Benefit | (8/16/05) | ||||||
| Industry Segment Avg | 15.60 | 1.60 | $45.95 | $40.64 | $43.29 | |||||
| HP Corporate | 19.67 | 0.83 | $96.67 | $74.87 | $20.22 | $68.46 | ||||
| HP Imaging&Printing | 16.00 | 1.60 | $47.12 | $40.64 | $43.88 | $23.66 | ||||
| Source: Annex Research | ||||||||||
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