Xerox Holdings Corporation hosted an Investor Day yesterday to share plans for creating long-term shareholder value, including strategies to grow the Print & Services business and specific growth and commercialisation strategies for new businesses and innovations.
Xerox said it 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. We’ve continued investing in innovation throughout the pandemic and global supply chain disruptions, and today we are pleased to share our progress,” said John Visentin, vice chairman and CEO, Xerox. “We are using innovation to drive growth in Print & Services, IT and Digital Services, as well as in our new disruptive businesses, CareAR and FITTLE, and in several transformative endeavours at PARC.”
As part of its Investor Day, Xerox introduced FITTLE, a rebrand of Xerox Financial Services (XFS), a leading provider of innovative business financing solutions to help organisations of all sizes adapt and grow. The evolution to FITTLE reflects Xerox’s breadth of offerings and expansion into new market segments.
FITTLE currently serves over 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. Learn more at FITTLE.com.
The event also includes:
Review of Xerox’s three-year financial outlook:
- Revenue of at least $7.1 billion (€6.34 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 (€357 million) in 2022, and $450 million (€402 million) to $500 million (€446 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 (€71 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 & Services, FITTLE, CareAR and PARC, along with KPI’s 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 fulfil clients evolving workplace needs and investments to scale, commercialise and eventually monetise its new businesses.
