Xerox 2015 Annual Report Download - page 5

Xerox 2015 Annual Report 3Xerox 2015 Annual Report 3
2015 was a year of transition for Xerox. Our financial results were
mixed in an increasingly challenging market environment, but
we remained committed to delivering value through our focus on
targeted growth segments, our solid financial position and team
of great people. The many important decisions we made reflect the
way we keep our key stakeholders, especially our shareholders, at
the center of everything we do.
One of the most pivotal decisions we made, in early 2016, one that
we believe will deliver the highest value-creating opportunity for
shareholders, was our move to separate Xerox into two independent
companies. This decision followed a comprehensive review of
our structural options and provides us with increased strategic
focus, financial flexibility and agility. We have created a new path
forward.
Before I share more about our future, I’ll review our 2015 results.
Year in Review
In 2015, we delivered strong capital returns despite pressures stemming
from global economic uncertainty, weakened currencies, and the effect of
lower revenues and operating margins from challenges in several of our
businesses. Here’s a summary of how we performed:
• We delivered adjusted1 earnings per share of $0.98; GAAP earnings per
share from continuing operations of $0.49.
• Total revenue for 2015 was $18 billion, down 8 percent or 4 percent in
constant currency from 2014.
• We generated solid operating cash flow of $1.6 billion.
• Operating margin1 for the year was 8.4 percent, down 1.2 points over
the previous year.
• We continued to deliver value to our shareholders. We returned $1.6
billion to you through $1.3 billion of share repurchases and over $300
million in dividends. As of January 2016, we increased our annual
dividend by 11 percent to $0.31 per share, the highest level since 2000.
Differentiating and Delivering in Targeted Markets
We operate in an environment defined by rapidly shifting trends both
in the broader economy and in the industry sectors we serve. Within
this context, a core element of our strategy has been to identify growth
markets where we can differentiate or disrupt through our innovation
and expertise in improving the flow of work. In those spaces, we not only
address critical client needs, we also support business processes that
touch the lives of millions of people: drivers, patients, shoppers, employees
and benefit recipients, just to name a few. Below are some examples of
what I mean:
• The State of Florida selected Xerox to implement a state-of-the-art
customer service system for processing toll transactions. Building on our
existing relationship with the state, we will process more than a billion
toll transactions and manage over five million individual accounts
annually. The new service system will consolidate Florida’s multiple toll-
way operations into a single back-office system that will reduce costs,
improve operational efficiency, and enhance the driver and customer
experience.
• We remain the innovation leader in managed print services, a category
that we pioneered almost two decades ago. In 2015, we introduced
new tools that further automate business processes, boost employee
productivity, and drive security, mobility and sustainability. In 2015,
Xerox received leadership awards from Quocirca, IDC and Gartner’s
Magic Quadrant for managed print and content services.
• We are partnering with the State of New York to update its Medicaid
claims processing system to our next-generation technology solution,
Health Enterprise. Our flexible Medicaid Management Information
System helps New York and other states manage all aspects of today’s
Medicaid programs, including managed care and other areas that are
needed to comply with the U.S. Affordable Care Act, as well as prevent
fraud and abuse.