Xerox Outlines Strategy at Investor Day
Xerox Outlines Strategy at Investor Day
Xerox Holdings Corp. hosted its Investor Day on Feb. 23 to share plans for creating long-term shareholder value, including strategies to grow the print and services business and specific growth and commercialization strategies for new businesses and innovations. Xerox will also provide a long-range financial forecast for each of its businesses, encompassing plans for growth in print and beyond.
"At Xerox, innovation is the core of what we do and who we are," said John Visentin, vice chairman and CEO, Xerox. "We've continued investing in innovation throughout the pandemic and global supply chain disruptions, and today we are pleased to share our progress. We are using innovation to drive growth in print and services, IT and digital services, as well as in our new disruptive businesses, CareAR and FITTLE, and in several transformative endeavors at PARC."
As part of its Investor Day, Xerox introduced FITTLE, a rebrand of Xerox Financial Services (XFS), a provider of business financing solutions to help organizations of all sizes adapt and grow. The evolution to FITTLE reflects Xerox's breadth of offerings and expansion into new market segments.
The event also included:
Review of Xerox's three-year financial outlook:
- Revenue of at least $7.1 billion in actual currency in 2022, with expected low to mid-single-digit annual growth through 2024
- Adjusted operating margin expansion of more than 200 basis points
- Free cash flow generation of at least $400 million in 2022, and $450 million to $500 million annually through 2024
- Expected return of at least 50% of free cash flow to shareholders
A detailed review of newly stood up businesses and their respective growth strategies:
- FITTLE – Introduction of a new name for this business, which will increasingly target financing opportunities beyond Xerox equipment and services.
- CareAR – Will play a leading role in developing the service experience management market, which is expected to grow to $80 billion by 2028, with its AR/VR and AI-driven visual support platform.
- PARC – Venture ecosystem that drives commercial applications of PARC's research efforts across the IoT, additive manufacturing and cleantech industries.
Financial outlooks for print and services, FITTLE, CareAR and PARC, along with KPIs and financial metrics to enable a sum-of-the-parts valuation of Xerox.
Investment strategy for driving long-term growth, including an expansion of IT services, deployment of digital services that fulfill clients' evolving workplace needs and investments to scale, commercialize and eventually monetize Xerox's new businesses.
A replay of the Investor Day presentation and presentation material will be accessible for at least 90 days on Xerox's Investor Relations website at news.xerox.com/investors.
In other news, Xerox has introduced FITTLE, the new name for its equipment financing business. The name is derived from "fit," representing the right choice through speed, quality and ease of transacting, all of which are essential in a financing partner.
As a global provider of business financing and solutions, FITTLE helps businesses secure financing for a range of offerings. These include IT services, software, audiovisual and security hardware, 3D printing equipment and other office equipment. Also offered are programs such as bundled billing for support, supplies and maintenance.
As digital transformation continues to drive today's business environment, companies are seeking ways to preserve capital for investment. This environment creates greater opportunities for trusted providers of capital. FITTLE's expertise in equipment financing helps businesses meet their unique needs through dealer and vendor financing programs.
"Nearly eight in 10 U.S. businesses use equipment financing to operate and grow," said Nicole Torraco, president, FITTLE. "Industry forecasts show that growth in capital spending will continue, and equipment and software financing will play a significant role as businesses require vendor financing and dealer leasing solutions that fit their unique needs."
FITTLE currently serves more than 150,000 customers in 29 countries, in addition to managing more than 700,000 leases, and works with more than 1,000 dealers and network partners around the world.