Q3 FY23/24 performance:

• ISG delivered quarter-to-quarter revenue growth for the second consecutive quarter.
• Combined revenue from storage, software, and services reached a record high of US$1 billion.
• ISG expects to remain a solid #3 globally for both storage and AI infrastructure.

Opportunities and Sustainable Growth:

• AI server is expected to grow nearly twice as fast as the total server market.
• ISG is growing key strategic partnerships to strengthen its portfolio competitiveness.
• The rise of AI is driving higher demand for smart infrastructure (better performance, smarter management, and lower energy consumption). Lenovo is unique with its comprehensive Edge to Cloud portfolio, AI Innovators program, and AI Innovation Centers delivering vertical and horizontal pre-validated solutions to the industry.

Intelligent Devices Group (IDG): Resumed growth and solidified leadership

Q3 FY23/24 performance:

• IDG delivered a strong quarter with revenue resuming growth thanks to a clear strategy, consistent investment in innovation, and operational excellence.
• Continued PC market recovery saw IDG outperforming the market and returning to year-on-year shipment growth with the highest market share since Covid at nearly 24%. North America excelled with year-on-year PC revenue growth of 20%.
• The non-PC devices business made encouraging progress. The smartphone and tablet businesses returned to high double-digit year-on-year shipment growth with a significant premium to the market of more than 20 points. Smartphone shipments were up 32% year-to-year – with hypergrowth in Asia Pacific, EMEA and North America.

Opportunities and Sustainable Growth:

• The trend of hybrid AI will drive the demand for client devices and another refreshment cycle, creating growth potential and margin improvements.
• Lenovo has a unique opportunity to develop a fully unified AI experience that spans users’ digital ecosystems, including PC, tablets, and smartphones.

ESG highlights

Lenovo has been recognized for several ESG achievements over the past quarter, including:

• Maintaining the highest possible score in the annual MSCI ESG ratings with a AAA rating.
• Being honored with a Gold award in the annual Best Corporate Governance and ESG awards by the Hong Kong Institute of Certified Public Accountants.
• Included in the Human Rights Campaign Foundation’s 2023-2024 Corporate Equality Index for the 6^th consecutive year.
• Receiving its highest score in the annual Workplace Pride Global Benchmark.

About Lenovo

Lenovo is a US$62 billion revenue global technology powerhouse, ranked #217 in the Fortune Global 500, employing 77,000 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 growth areas that fuel the advancement of ‘New IT’ technologies (client, edge, cloud, network, and intelligence) including server, storage, mobile, software, solutions, and services. This transformation together with Lenovo’s world-changing innovation is building a more inclusive, trustworthy, and smarter future for everyone, everywhere. Lenovo is listed on the stock exchange of Hong Kong 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.