Xerox Announces Second-Quarter Results, Delivers Increased Cash Flow, Earnings Growth and Margin Expansion

NORWALK, Conn., July 30, 2019 – Today Xerox (NYSE: XRX) announced its second-quarter 2019 financial results.“This quarter we delivered improvements in EPS, adjusted operating margin and free cash flow largely underpinned by our enterprise-wide transformation initiative, Project Own It. These results have enabled us to increase planned investments for the second half of the year to support our revenue roadmap while maintaining our full-year guidance for EPS, adjusted operating margin and free cash flow,” said Xerox Vice Chairman and CEO John Visentin.

Key Financial Results:

Key Business Highlights:

• Investing in revenue-generating initiatives including, but not limited to:

◦ Adding new revenue streams for software and services targeting small and medium-sized businesses through partnerships with HP and American Express

◦ Expanding Xerox Business Solutions’ (XBS) IT Services capabilities to capitalize on this growing $95 billion market in the United States

◦ Acquiring two new multi-brand dealers, Rabbit Office Automation and Heritage Business Systems, to grow XBS’ foothold in key markets

◦ Launching new products such as the Xerox Baltoro™HF Inkjet Press and the Xerox Adaptive CMYK Plus Technology to capture incremental production volume

• Added and renewed several multi-year contracts with Fortune 500 and public sector clients such as Morgan Stanley, the Commonwealth of Massachusetts and the County of San Diego• On track to drive gross savings in 2019 of at least $640 million under Project Own It, Xerox’s enterprise-wide initiative to simplify operations, drive continuous improvement and free up capital to reinvest in the business