Xerox 2010 Annual Report Download - page 8

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Year-over-yearourrevenuefromserviceswasup3percent1 on a pro-
forma basis and indicators for future revenues remain strong. Business
signings were up about 13 percent on a trailing 12-month basis.
So positive results in both technology and services, good
opportunities going forward and a team that is focused on
excellent execution.
Delivering Shareholder Value
In 2010, we grew adjusted earnings, increased revenue, improved
operating margin and generated $2.7 billion in cash. We delivered
on our commitments across the board. And by doing so, we created
greater value for our shareholders. That was then; this is now.
We enter 2011 with building momentum and heightened
condence.Idon’tknowthatanyonehasthehubristopredictwith
any certainty what the post-recession business climate will be like.
But I do know this – businesses and governments, large and small,
willcontinuetostruggletocontaincosts,operatemoreefciently,
grow revenue and build better client relationships. In other words,
they will want to go about their real business and Xerox is ready to
help them.
We’recondent,butnotcomplacent.We’redifferentiatedinthe
marketplace through our world-class innovation and renowned
service. We operate in some 160 countries and that’s becoming
more and more important to our larger customers who are looking
for global solutions. Our world-class brand gives us a high degree of
trust that helps us open doors and build relationships. We’re relevant
to our customers who rely on us to make them better. Our business
model has been tested under the most trying conditions the past
few years and proven to be both resilient and flexible. We are
focused on the basics – containing cost, generating cash, growing
revenue and providing you with good returns.
Our 2011 priorities and plans keep us on track to grow revenue,
generatesignicantcashandexpandearnings.Wewon’t
compromise our leadership position or give an inch in document
technology. By continuing to expand distribution, we’ll increase
install activity and equipment sales – with an emphasis on driving
color pages that help boost our annuity stream.
We’ll continue to grow our services business by leveraging our brand,
global scale, innovation and delivery platforms to win multimillion-
dollar deals in business process, IT and document outsourcing.
We’ll remain diligent on cost and expense management, capturing
keycostsynergiesfromtheACSacquisitionanddrivingefciencies
and productivity across the enterprise.
We’ll continue to focus on generating free cash flow1 – about $2
billion of it – all the while reducing debt, delivering dividends, closing
on“tuck-in”acquisitionsandallottingasignicantportionof
available cash to repurchasing stock.
We are now 136,000 people strong doing business in 160 countries
and all with an overreaching mission of delivering value to our
customers and our shareholders.
I’mcondentwehavetherightstrategy,asoundbusinessmodel,the
competitive strength, a seasoned leadership team, talented people,
and the discipline and focus to put it all together for you in 2011.
This is our real business, and we’re ready.
Ursula M. Burns
ChairmanandChiefExecutiveOfcer
Note: estimates regarding market size and growth are based on a combination of third-party
and internal information.
(1) We have discussed our results using non-GAAP measures. Management believes that these
non-GAAP financial measures provide an additional means of analyzing the current periods’
results against the corresponding prior periods’ results. However, these non-GAAP financial
measures should be viewed in addition to, and not as a substitute for, the Company’s reported
results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant
to be considered in isolation or as a substitute for comparable GAAP measures and should be
read only in conjunction with our consolidated financial statements prepared in accordance
with GAAP. Our management regularly uses our supplemental non-GAAP financial measures
internally to understand, manage and evaluate our business and make operating decisions.
These non-GAAP measures are among the primary factors management uses in planning for
and forecasting future periods.
A reconciliation of these non-GAAP financial measures to the most directly comparable financial
measures calculated and presented in accordance with GAAP are set forth on the following page.
“ We are focused on the basics –
containing cost, generating cash,
growing revenue and providing
youwithgoodreturns.”