Opportunity:

Despite the PC market decline, real demand, as reflected by the activation data in 2022, is much better than the industry shipment data indicates with the market expected to stabilize at a higher than pre-pandemic level in the second half of 2023.

Q3 FY22/23 performance:

• IDG successfully maintained the #1 position in the PC market with 23.1% market share. It also maintained industry-leading profitability of 7.3%, driven by strong product competitiveness reflected in leading Windows activations and resulting in improved inventory levels.
• The smartphone business was profitable for the 11^th consecutive quarter. Activations from the premium product motorola edge grew by 74% year-on-year.
• Premium product mix in the tablet portfolio expanded and smart spaces solutions continued to demonstrate growth potential with key wins.

Sustainable Growth:

• Innovation continued to drive the evolution from smart devices to smart spaces.
• The Lenovo Yoga Book 9i won a historic 50 awards at the recent CES show as the first^[2] full-sized OLED dual screen laptop in the world, and the Lenovo ThinkPhone by Motorola, the company’s first B2B focused smartphone, won 15 “Best of CES” awards thanks to its strong positioning around security and productivity.
• Enhanced digital workplace solutions are improving user experiences in hybrid workspaces.

Operational highlights and investing for the future

Environmental, Social, Governance - Lenovo recently became part of the first group of companies to receive net-zero validation from Science Based Targets initiative, a partnership between the UN Global Compact, CDP, World Resources Institute, and World Wide Fund for Nature, making it the first PC and smartphone maker with targets validated by the Net-Zero Standard. As part of its wider sustainability commitments, Lenovo has teamed up with Kuehne+Nagel to design a sustainable logistics solution to help customers reduce their carbon footprint. The company was listed in the 2023 Bloomberg Gender-Equality Index (GEI) for the fourth year. The Bloomberg Gender-Equity Index framework tracks the progress of 484 companies, in 11 sectors and 45 countries and regions around the world in women’s empowerment and equality in the workplace.

Supply Chain excellence – At this year’s World Economic Forum in Davos, Lenovo’s Hefei factory, LCFC, was recognized as one of 18 additional sites added to the Forum’s Global Lighthouse Network of 132 leading manufacturers, each chosen for their leadership and integration of fourth Industrial revolution technologies (4IR). Established in 2011, LCFC is one of the most advanced smart manufacturing factories in the world and the largest for intelligent computing devices (PCs, servers, edge computing, smart Internet of Things). It is the flagship in Lenovo’s network of 35+ manufacturing sites across nine markets and ships products to 126 markets around the world. This is done while managing 300K individual pieces of materials and parts every day, 300 discreet new products every year, and more than 200,000 different product configurations.

Industry Accolades – Fortune magazine recently published its annual list of the World’s Most Admired Companies where Lenovo has risen 11 places in the listing to #189. The annual ranking evaluates the corporate reputations of global organizations and looks at the 1,000 largest U.S. companies alongside FORTUNE’s Global 500 companies with annual revenues of US$10+ billion. Lenovo currently ranks 171 on the FORTUNE Global 500 list. The list ranks global companies from 52 different industries. Within companies in the ‘computer industry’ sub-category, Lenovo was particularly recognized as “Most Admired,” scoring well for the quality of products and services, governance, innovation, and social responsibility.

Fast Company recently recognized Lenovo’s Mixed Reality Education Technology as one of the “Next Big Things in Tech”. The panel of editors and writers investigate the world of technology to showcase what it believes to be the ‘Next Big Thing in Tech’ across companies of all sizes, from multinationals to start-ups. This year Lenovo was chosen, alongside 120 other companies, that demonstrated fresh thinking, and cutting-edge technology. Lenovo was highlighted as one of several companies trying to make the world a better place by tackling basic societal problems.

About Lenovo

Lenovo (HKSE: 992) (ADR: LNVGY) is a US$70 billion revenue global technology powerhouse, ranked #171 in the Fortune Global 500, employing 82,000 people around the world, and serving millions of customers every day in 180 markets. Focused on a bold vision to deliver smarter technology for all, Lenovo has built on its success as the world’s largest PC company by further expanding into key growth areas including server, storage, mobile, solutions and services. This transformation together with Lenovo’s world-changing innovation is building a more inclusive, trustworthy, and sustainable digital society for everyone, everywhere. To find out more visit https://www.lenovo.com, and read about the latest news via our StoryHub.