{"id":33084,"date":"2019-02-07T11:14:13","date_gmt":"2019-02-07T19:14:13","guid":{"rendered":"https:\/\/www.enxmag.com\/twii\/?p=33084"},"modified":"2019-02-07T11:25:01","modified_gmt":"2019-02-07T19:25:01","slug":"xerox-outlines-three-year-strategy-at-investor-day-guides-to-over-3-billion-of-cumulative-cash-flow-and-annual-eps-expansion","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/the-week-in-imaging-twii\/editors-blog\/2019\/02\/xerox-outlines-three-year-strategy-at-investor-day-guides-to-over-3-billion-of-cumulative-cash-flow-and-annual-eps-expansion\/","title":{"rendered":"Xerox Outlines Three-Year Strategy at Investor Day; Guides to Over $3 Billion of Cumulative Cash Flow and Annual EPS Expansion"},"content":{"rendered":"<div id=\"attachment_29400\" style=\"width: 210px\" class=\"wp-caption alignleft\"><img aria-describedby=\"caption-attachment-29400\" loading=\"lazy\" class=\"size-medium wp-image-29400\" src=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2018\/05\/JohnVisentin-200x300.jpg\" alt=\"\" width=\"200\" height=\"300\" srcset=\"https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2018\/05\/JohnVisentin-200x300.jpg 200w, https:\/\/www.enxmag.com\/twii\/wp-content\/uploads\/2018\/05\/JohnVisentin.jpg 427w\" sizes=\"(max-width: 200px) 100vw, 200px\" \/><p id=\"caption-attachment-29400\" class=\"wp-caption-text\">John Visentin, CEO of Xerox<\/p><\/div>\n<p>On Tuesday, Xerox (NYSE: XRX) held an Investor Day to provide the investment community and other stakeholders details on its strategic initiatives and financial plans.<\/p>\n<p>\u201cWith a history of designing breakthrough technologies, Xerox is \u2018made to think.\u2019 We are taking a disciplined approach to creating the next generation of innovative technologies and intelligent work solutions to meet our clients\u2019 evolving needs,\u201d said John Visentin, vice chairman and CEO, Xerox.<\/p>\n<p>\u201cBy simplifying our operations, instilling a culture of continuous improvement, investing in growth areas and capitalizing 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, including at least $4.00 of adjusted earnings per share in 2020, and delivering over $3 billion of cumulative free cash flow over the next three years,\u201d Visentin added.<\/p>\n<p>The event included:<\/p>\n<p>Review of Xerox\u2019s financial plans and three-year roadmap highlighting:<\/p>\n<ul>\n<li>Expected annual improvements in its revenue trajectory that result in flat to growing revenue by 2021;<\/li>\n<li>Expected adjusted operating margin expansion of more than 200 basis points over the next three years;<\/li>\n<li>Expected adjusted EPS expansion of at least 7 percent annually, including at least $4.00 of adjusted EPS in 2020;<\/li>\n<li>Expected cumulative free cash flow in excess of $3 billion over the next three years; and<\/li>\n<li>Delivering greater than 50 percent of free cash flow back to shareholders through dividends and share repurchases in each of the next three years.<\/li>\n<\/ul>\n<p>A detailed review of Project Own It, the company\u2019s 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:<\/p>\n<ul>\n<li>An increasingly frictionless, high-velocity business for clients;<\/li>\n<li>More significant investments, including funding of longer-term innovation, to support the company\u2019s revenue roadmap; and<\/li>\n<li>Bottom-line annual profit growth.<\/li>\n<\/ul>\n<p>Presentation of a comprehensive strategy to improve the company\u2019s revenue trajectory. Elements of the strategy include plans to:<\/p>\n<ul>\n<li>Improve the company\u2019s Core Technology business;<\/li>\n<li>Expand Services and Software;<\/li>\n<li>Capitalize on the opportunity in SMB;<\/li>\n<li>Transform the client digital experience; and<\/li>\n<li>Drive innovation and new business growth.<\/li>\n<\/ul>\n<p>Details on how the company plans to re-energize innovation by leveraging its intellectual property in adjacent areas, exploring opportunities where it can gain traction in high-growth markets. The company\u2019s Powered by Xerox strategy is designed to leverage Xerox technology to drive developments in digital packaging and print; 3D printing; AI workflow assistants; and sensors and services for the Internet of Things.<\/p>\n<p>A replay of the audio webcast, along with relevant presentation materials is available <a href=\"https:\/\/webinars.on24.com\/xerox\/Investor2019\">here<\/a>.<\/p>\n<p><strong>Non-GAAP Measures<\/strong><\/p>\n<p>This release refers to the following non-GAAP financial measures for the full year 2020 and for the next three-year period (2019 through 2021):<\/p>\n<p><strong>Adjusted EPS<\/strong> \u2013 reported GAAP EPS adjusted for restructuring and related costs (including our share of Fuji Xerox restructuring), the amortization of intangibles, non-service retirement-related costs, transaction and related costs, net and other discrete or unusual adjustments.<\/p>\n<p><strong>Adjusted operating margin<\/strong> \u2013 reported GAAP pre-tax margin adjusted for the EPS adjustments noted above as well as the remainder of Other expenses, net, which are primarily non-financing interest expense and certain other non-operating costs and expenses.<\/p>\n<p><strong>Free cash flow<\/strong> \u2013 cash flow from continuing operations less capital expenditures.<\/p>\n<p>Reconciliations of the above measures to GAAP, for the periods noted, cannot be provided without unreasonable effort due to the uncertainty of the reconciliation amounts such as restructuring, non-service retirement costs, intangible amortization, other expenses, net and the related income taxes effects on those items.<\/p>\n<p>###<\/p>\n<p><strong>About Xerox<\/strong><br \/>\nIn the era of intelligent work, we\u2019re not just thinking about the future, we\u2019re making it. <a href=\"http:\/\/www.xerox.com\">Xerox Corporation<\/a> (NYSE: XRX) is a technology leader focused on the intersection of digital and physical. We use automation and next-generation personalization to redefine productivity, drive growth and make the world more secure. Every day, our innovative technologies and intelligent work solutions\u2014Powered by Xerox\u2014help people communicate and work better.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Tuesday, Xerox (NYSE: XRX) held an Investor Day to provide the investment community and other stakeholders details on its strategic initiatives and financial plans. \u201cWith a history of designing breakthrough technologies, Xerox is \u2018made to think.\u2019 We are taking a disciplined approach to creating the next generation of innovative technologies and intelligent work solutions to meet our clients\u2019 evolving needs,\u201d said John Visentin, vice chairman and CEO, Xerox. \u201cBy simplifying our operations, instilling a culture of continuous improvement, investing in growth areas and capitalizing 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, including at least $4.00 of adjusted earnings per share in 2020, and delivering over $3 billion of cumulative free cash flow over the next three years,\u201d Visentin added. The event included: Review of Xerox\u2019s financial plans and three-year roadmap highlighting: Expected annual improvements in its revenue trajectory that result in flat to growing revenue by 2021; Expected adjusted operating margin expansion of more than 200 basis points over the next three years; Expected adjusted EPS expansion of at least 7 percent annually, including at least $4.00 of adjusted EPS in 2020; Expected cumulative free cash flow in excess of $3 billion over the next three years; and Delivering greater than 50 percent 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\u2019s 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: An increasingly frictionless, high-velocity business for clients; More significant investments, including funding of longer-term innovation, to support the company\u2019s revenue roadmap; and Bottom-line annual profit growth. Presentation of a comprehensive strategy to improve the company\u2019s revenue trajectory. Elements of the strategy include plans to: Improve the company\u2019s Core Technology business; Expand Services and Software; Capitalize on the opportunity in SMB; Transform the client digital experience; and Drive innovation and new business growth. Details on how the company plans to re-energize innovation by leveraging its intellectual property in adjacent areas, exploring opportunities where it can gain traction in high-growth markets. The company\u2019s Powered by Xerox strategy is designed to leverage Xerox technology to drive developments in digital packaging and print; 3D printing; AI workflow assistants; and sensors and services for the Internet of Things. A replay of the audio webcast, along with relevant presentation materials is available here. Non-GAAP Measures This release refers to the following non-GAAP financial measures for the full year 2020 and for the next three-year period (2019 through 2021): Adjusted EPS \u2013 reported GAAP EPS adjusted for restructuring and related costs (including our share of Fuji Xerox restructuring), the amortization of intangibles, non-service retirement-related costs, transaction and related costs, net and other discrete or unusual adjustments. Adjusted operating margin \u2013 reported GAAP pre-tax margin adjusted for the EPS adjustments noted above as well as the remainder of Other expenses, net, which are primarily non-financing interest expense and certain other non-operating costs and expenses. Free cash flow \u2013 cash flow from continuing operations less capital expenditures. Reconciliations of the above measures to GAAP, for the periods noted, cannot be provided without unreasonable effort due to the uncertainty of the reconciliation amounts such as restructuring, non-service retirement costs, intangible amortization, other expenses, net and the related income taxes effects on those items. ### About Xerox In the era of intelligent work, we\u2019re not just thinking about the future, we\u2019re making it. Xerox Corporation (NYSE: XRX) is a technology leader focused on the intersection of digital and physical. We use automation and next-generation personalization to redefine productivity, drive growth and make the world more secure. Every day, our innovative technologies and intelligent work solutions\u2014Powered by Xerox\u2014help people communicate and work better.<\/p>\n","protected":false},"author":66,"featured_media":29400,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[80,1650,82,1638],"tags":[],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/33084"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=33084"}],"version-history":[{"count":4,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/33084\/revisions"}],"predecessor-version":[{"id":33088,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/33084\/revisions\/33088"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media\/29400"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=33084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=33084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=33084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}