Xerox Completes Acquisition of ACS Industry Analyst / Advisor Call

Transcription

1 Xerox Completes Acquisition of ACS Industry Analyst / Advisor Call Tom Blodgett Executive Vice President COO, Commercial Operations ACS, A Xerox Company Jim Firestone Executive Vice President President, Corporate Operations Xerox Corporation February 8, 2010

2 Forward-Looking Statements This presentation contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of The words anticipate, believe, estimate, expect, intend, will, should and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements reflect management s current beliefs, assumptions and expectations and are subject to a number of factors that may cause actual results to differ materially. These factors include but are not limited to: the unprecedented volatility in the global economy; the risk that unexpected costs will be incurred; the outcome of litigation and regulatory proceedings to which we may be a party; actions of competitors; changes and developments affecting our industry; quarterly or cyclical variations in financial results; development of new products and services; interest rates and cost of borrowing; our ability to protect our intellectual property rights; our ability to maintain and improve cost efficiency of operations, including savings from restructuring actions; changes in foreign currency exchange rates; changes in economic conditions, political conditions, trade protection measures, licensing requirements and tax matters in the foreign countries in which we do business; reliance on third parties for manufacturing of products and provision of services; the risk that we will not realize all of the anticipated benefits from the acquisition of Affiliated Computer Services, Inc. ( ACS ); and other factors that are set forth in the Risk Factors section, the Legal Proceedings section, the Management s Discussion and Analysis of Financial Condition and Results of Operations section and other sections of our 2008 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009 and ACS s 2009 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the quarter ended September 30, 2009 filed with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements as a result of new information. 2

3 Today s Discussion Acquisition Close Highlights Xerox + ACS: A New Class of Solutions Provider Looking Ahead Questions Vision Working Together Creating Value Leveraging the Brand Global Presence Innovation Delivery 3

4 Acquisition Close Highlights Acquisition of ACS completed today Creates the world s leader in business process and document management Combines the strengths of best-in-class companies to create a new class of solutions provider Transforms Xerox into a $22 billion global enterprise Triples size of Services business to $10 billion Annuity revenue grows to 80 percent of total revenue Free cash flow expected to exceed $2 billion in 2010 Earnings expected to expand 15 to 20 percent annually Delivers increased and sustainable shareholder and customer value 4

5 Xerox + ACS: A New Class of Solutions Provider Xerox is the world s leader in business process and document management Provides customers with a broader suite of business solutions Leverages brand strength, global reach and technology expertise Creates compelling customer value thru innovative, differentiated offerings Accelerates Services-led strategy to provide greater scope, scale, and relevance as a global BPO competitor Expands market opportunity by 4X to $500 billion, growing at 5% Unites highly complementary organizations With Xerox behind the scenes, clients can focus on what matters most: their real business 5

6 Working Together Strongly committed to ACS existing lines of business (BPO + ITO) Manage ACS as an independent, end-to-end business Lynn Blodgett reports directly to Ursula Burns ACS Leadership Team remains in place Align relevant Xerox BPO businesses to ACS ACS serves as Xerox s core BPO business Non-print related align with ACS; Print related maintain in Xerox Maintain Enterprise Print Services in Xerox core business 6

7 Creating Value Leverage the Xerox brand Expand global presence Create new and differentiated offerings through innovation Increase automation and efficiency to improve delivery 7

8 Leverage the Xerox Brand and ACS Credibility in BPO February 8 Ownership message and new logo on ACS materials Mid-Year Transition ACS to Xerox brand identity, but maintain the name: ACS, A Xerox Company 8

9 Brand Campaign Announcement Ad to run on February 9 Rebranding Campaign to begin in Q

10 Global Presence Sales Penetrate Xerox global accounts with ACS solutions and Penetrate ACS accounts with Managed Print Services offerings Day-1 cross-selling training and communications Compensation structure in place Sales process and account targeting in place Synergies validated and translated to deal metrics Significant customer pull more than 25 teaming agreements to-date Revenue expected in 2010 ahead of target 10

11 Innovation Innovation Use Xerox technology to create new automated and differentiated BPO services Multiple site visits and more than 25 line-of-business workshops Transformational opportunities in all BPO lines of business Game-Changing opportunities in key verticals including government and healthcare 11

12 Delivery Delivery and Infrastructure Cross-deploy Xerox technology and ACS process expertise to increase automation and efficiency Corporate Governance functions organized and Day-1 plans in place to remove overlap Substantial procurement synergies already identified Significant opportunities to outsource, replace ACS hardware and leverage BPO centers / platforms - Work progressing with detailed plans in place - Implementation of initiatives kicking off Implementing Xerox Smarter Document and Categorization technologies into ACS delivery 12

13 Looking Ahead Leveraging strengths of two best-in-class companies Brand / Global Presence / Innovation / Delivery Building value for customers and shareholders Expanded, differentiated service and technology offerings Giving ACS flexibility to continue building on its success: Keep doing what they do so well 13

14 Appendix 14

15 How Xerox is organized Anne Mulcahy Chairman Ursula Burns Chief Executive Officer Wim Appelo Xerox Global Business & Services Group Stephen Cronin Xerox Global Services Jim Firestone Corporate Operations Don Liu Office of the General Counsel Larry Zimmerman Chief Financial Officer Lynn Blodgett ACS, A Xerox Company Jacques Guers Developing Markets Operations Doug Lord North American Solutions Group Russell Peacock North American Channels Group Armando Zagalo de Lima Xerox Europe 15 Note: This chart is illustrative only and does not show all organizations or reporting relationships.

16 ACS Senior Leadership 16