Lenovo : FY2023/24 Annual Results Presentation

Q4 and FY23/24

Earnings

Announcement

May 23, 2024

2024 Lenovo Internal. All rights reserved.

Forward-Looking Statement

This presentation contains "forward-looking statements", which are statements that refer to the expectations and plans for the future and include, without limitation, statements regarding Lenovo's future results of operations, financial condition or business

prospects as well as other statements based on projections, estimates and assumptions. In some cases, these statements can be identified by terms such as "expect," "intend," "plan," "believe," "estimate," "may," "will," "should" and comparable words (including negative variants of such words). These forward-looking statements, reflect the current expectations and plans of the directors and management of Lenovo, which may not materialize or may change. Many risks, uncertainties and other factors, some of which are unpredictable and beyond Lenovo's control, could affect the matters discussed in these forward-looking statements. These factors

include, without limitation, economic and business conditions globally and in the countries where we operate, Lenovo's abilit y to

predict and respond quickly to market developments, consumer demand, pricing trends and competition; changes in applicable laws and regulations (including applicable tax and tariff rates). Any variance from the expectations or plans on which these forward-looking statements are based could cause Lenovo's actual results or actions to differ materially from those expressed or implied in these statements. These forward-looking statements are not guarantees of future performance and you are cautioned not to place undue reliance on these statements. Lenovo undertakes no obligation to update any forward-looking statements in this presentation, whether as a result of new information or any subsequent change, development or event. All forward-looking statements in this presentation are qualified by reference to this paragraph.

2024 Lenovo Internal. All rights reserved.	2

Yuanqing Yang

Chairman & CEO

May 23, 2024

2024 Lenovo Internal. All rights reserved.

Accelerating growth,	Capturing
navigated downturn	hybrid AI opportunity

4

Q4

Group:

Growth accelerated, Capturing Hybrid AI

opportunities

2023/24 Q4 Performance

• Revenue $13.8B, up 9.5% YTY
• Net income $248M, up 118% YTY
• Net income margin up 0.9pts YTY
• All businesses resumed YTY growth
• Non-PCrevenue mix up 1.5pts YTY to 44.7%, record high

Source: Internal

5

Group:

Growth accelerated Capturing Hybrid AI

opportunities

Opportunities & Sustainable growth

Hybrid AI creates huge opportunities for devices, infrastructure, solutions & services

• PC market resumed YTY growth
• Hybrid AI drives hybrid infrastructure
• Increasing demand for customized AI solutions and services

Committed to "AI for all"

• Committed to investment in innovation
• Full-stackAI capabilities: AI devices, AI infrastructure, AI solutions & services

Source: Industry research

6

Q4

SSG

Solutions & Services Group:

Strong growth & profitability, Driving AI solutions

2023/24 Q4 Performance

• Revenue $1.82 billion, up 10% YTY
• Operating margin 21.4%, up 1.7pts YTY
• Managed Services, Project & Solution Services revenue mix reached 55%, up 5pts YTY
• Hero offerings, e.g. Digital Workplace Solution & Hybrid Cloud, delivered rapid growth

Source: Internal

7

SSG

Solutions & Services Group:

Strong growth & profitability, Driving AI solutions

Opportunities & Sustainable growth

• New IT services market expected stable growth (CAGR 11.3%, 2024-2027)

• Increasing demand for AI-native services

• Build AI-native & AI-embedded solutions & services

Source: Industry research

8

Q4

ISG

Infrastructure Solutions Group:

Regained momentum

2023/24 Q4 Performance

• Revenue resumed YTY growth, up 15%, to record high for Q4
• Third consecutive quarter of revenue QTQ growth
• Combined revenue from Storage, Software and Services up 52% YTY
• HPC revenue record high
• Edge revenue record high for Q4

Source: Internal

9

ISG

Infrastructure Solutions Group:

Regained momentum

Opportunities & Sustainable growth

• ICT market continues shifting to hybrid AI infrastructure
• • AI servers to grow twice as fast as broad server market
  • Hybrid infrastructure supported by
    "Client-Edge-Cloud-Network-Intelligence" architecture
• Build a broad portfolio and convert pipeline
• Capture the growth opportunities in traditional servers, storage, software and services
• Execute on plans to return to profitability

Source: Industry research

10