Xerox held an Investor Day on Tuesday (5th February) to provide the investment community and other stakeholders details on its strategic initiatives and financial plans.
John Visentin, Vice Chairman and CEO, Xerox said, “with a history of designing breakthrough technologies, Xerox is ‘made to think.’ We are taking a disciplined approach to creating the next generation of innovative technologies and intelligent work solutions to meet our clients’ evolving needs.
“By simplifying our operations, instilling a culture of continuous improvement, investing in growth areas and capitalising on new and adjacent market opportunities, we anticipate that we can achieve flat to growing revenue by 2021, while driving continued annual adjusted earnings per share expansion over the next three years.”
The event featured:
Review of Xerox’s financial plans and three-year roadmap highlighting:
o Expected annual improvements in its revenue trajectory that result in flat to growing revenue by 2021;
o Expected adjusted operating margin expansion of more than 200 basis points over the next three years;
o Expected adjusted EPS expansion of at least 7 per cent annually;
o Expected cumulative free cash flow over the next three years; and
o Delivering greater than 50 per cent of free cash flow back to shareholders through dividends and share repurchases in each of the next three years.
A detailed review of Project Own It, the company’s enterprise-wide transformation program to simplify its business and drive greater operational efficiency while establishing a culture of continuous improvement. Project Own It is expected to generate:
o An increasingly frictionless, high-velocity business for clients;
o More significant investments, including funding of longer term innovation, to support the company’s revenue roadmap; and
o Bottom-line annual profit growth.
Presentation of a comprehensive strategy to improve the company’s revenue trajectory. Elements of the strategy include plans to:
o Improve the company’s Core Technology business;
o Expand Services and Software;
o Capitalise on the opportunity in SMB;
o Transform the client digital experience; and
o Drive innovation and new business growth.
Details on how the company plans to re-energise innovation by leveraging its intellectual property in adjacent areas, exploring opportunities where it can gain traction in high-growth markets.
A replay of the webcast is available at https://webinars.on24.com/xerox/Investor2019