Q4 and full year FY23/24 performance:

• Strengthened SSG’s position as a growth engine and profit contributor by delivering more than 10 percent year-on-year revenue growth to US$1.8 billion, and high profitability with an operating margin exceeding 21% - double-digit revenue growth and operating margin for 12 consecutive quarters. Revenue for the full fiscal year was US$7.5 billion, growing at 12% year-on-year and an operating margin of nearly 21%.
• Managed Services and Project and Solutions Services revenue mix grew five points year-on-year, now accounting for 55% of SSG’s total business for the quarter.
• Hero offerings such as Digital Workplace Solutions and TruScale for Hybrid Cloud have both delivered rapid growth.

Opportunities and Sustainable Growth:

• Looking ahead, SSG will continue to meet the increasing customer demand by moving fast to build AI-native and AI-embedded solutions and services.
• The Care of One platform, Cyber Resiliency as a Service and the decisioning tool Lenovo Intelligent Sustainability Solutions Advisor (LISSA) use the power of AI to deliver hyper-personalized employee experiences, increased productivity, enhanced security and sustainable IT choices.

Infrastructure Solutions Group (ISG): Regained momentum

Q4 and full year FY23/24 performance:

• Q4 revenue resumed growth, with double-digit year-on-year growth of 15%, taking ISG’s revenue for the quarter to US$2.5 billion – a new record high for a fourth quarter.
• Storage, software and services businesses all achieved hypergrowth, with the combined revenue increasing more than 50% year-on-year. High Performance Computing revenue hit a record high.
• For the full year ISG achieved quarter-on-quarter revenue growth for three consecutive quarters and achieved its second highest ever fiscal year revenue.

Opportunities and Sustainable Growth:

• AI servers are expected to grow nearly twice as fast as the broad server market as the market shifts to AI infrastructure.
• ISG will broaden its portfolio and convert its pipeline to capture new opportunities, as well as leveraging its strengths in traditional servers, edge, storage, software and services to capture growth and resume profitability.

Intelligent Devices Group (IDG): Solid growth, strengthened leadership

Q4 and full year FY23/24 performance:

• IDG continued to deliver a solid quarter, strengthening its global market leadership for PCs with a market share of 22.9%, a significant premium to the market, and industry leading profitability. Revenue for the quarter was US$10.5 billion, and for the full year was US$44.6 billion.
• The PC business was no. 1 in four out of five geographies, achieving record high market share in North America.
• The smartphone business delivered remarkable growth, growing double digits in both shipments and revenue year-on-year, with substantial premium to the market.
• IDG’s profitability for the full year was resilient, in spite of a weaker than expected market in the first half of the fiscal year. PCs, tablets, and smartphones all resumed growth in the second half of the fiscal year.

Opportunities and Sustainable Growth:

• Looking ahead, the volume of PC market is expected to recover to pre-Covid levels, with smartphone already having returned to double-digit year-on-year hypergrowth.
• AI PCs will gradually grow from premium to mainstream over the next three years as Lenovo has shipped its first wave of AI PCs and more will ship in the coming quarters, driving a new refresh cycle in the PC market.
• Expanding AI from PCs to phones and tablets, building seamless collaboration between devices with Smart Connect software solution.

ESG and corporate highlights

Achievements, announcements, and notable commitments over the past quarter include:

• Lenovo has been recognized for its leadership in climate change and supplier engagement by the global environment non-profit CDP. This leadership ranking recognized Lenovo for its efforts in implementing current best practices against climate change and proactively working with its suppliers toward a more sustainable future.

• The Group was also awarded ‘Best Value Chain Initiative’, ‘Best Green Product’, and received a recognition of ‘highly commended’ in the category of ‘Circular Economy Company of the Year’ at the global CRN Sustainability Tech Summit.
• In February, Lenovo joined UNESCO’s commitment for responsible AI, which asks companies to apply timely measures to ‘prevent, mitigate, or remedy’ potential adverse effect of AI. This commitment is in addition to Lenovo’s own internal responsible AI committee, a governance framework that covers ethical, legal, safety, privacy and accountability for any AI products, services, and solutions.

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

About Lenovo

Lenovo is a US$57 billion revenue global technology powerhouse, ranked #217 in the Fortune Global 500, 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 with a pocket-to cloud portfolio of AI-enabled, AI-ready, and AI-optimized devices (PCs, workstations, smartphones, tablets), infrastructure (data center, storage, edge, high performance computing and software defined infrastructure), software, solutions, and services. Lenovo’s continued investment in world-changing innovation is building a more equitable, trustworthy, and smarter future for everyone, everywhere. Lenovo is listed on the Hong Kong stock exchange under Lenovo Group Limited (HKSE: 992) (ADR: LNVGY). To find out more visit https://www.lenovo.com, and read about the latest news via our StoryHub