Xerox CEO to Investors: Services Growth, Document Technology Leadership to Deliver 2013 Earnings Expansion, Strong Operating

  Xerox CEO to Investors: Services Growth, Document Technology Leadership to
  Deliver 2013 Earnings Expansion, Strong Operating Cash

Company plans increased dividend next year and expands share repurchase
authorization by $1 billion

Business Wire

NEW YORK -- November 13, 2012

At its annual investor conference to be held here today, Xerox (NYSE: XRX) is
detailing its strategy to expand earnings and deliver long-term value for
shareholders through continued growth in services, market leadership in
document technology and its annuity-based business model.

“Transforming Xerox to a services-led business — now accounting for more than
half of our revenue — is creating a strong foundation for Xerox’s future,”
said Ursula Burns, chairman and chief executive officer. “Our diverse services
portfolio, deep industry expertise and integrated document solutions give our
company a competitive advantage and give our clients unparalleled value in
simplifying the complex ways work gets done.

“Our investments are aligned with areas of greatest growth opportunity and
we’re differentiated through our respected strength in innovation,” she added.
“With a clear view on the market trends in our industries, our focus is on
delivering operational improvements that expand margins, increasing our base
of recurring revenue and generating strong operating cash — all of which
deliver long-term value for shareholders and sustainable success for Xerox.”

Building Shareholder Value: 2013 Financial Performance Expectations

During the conference, the company will provide details on its expectations
for 2013 financial performance, including approximately 10 percent earnings
expansion and revenue in the range of flat to up 2 percent. Full-year 2013
GAAP earnings per share are expected to be in the range of $0.94 to $1.00.
Adjusted earnings per share are expected to be $1.09 to $1.15.

Through its cash-generating annuity revenue, Xerox expects operating cash flow
of $2.1 billion to $2.4 billion in 2013. Building on its share repurchase
plan, the company’s board of directors approved a $1 billion increase to the
current authorization. Xerox expects to allocate at least $400 million in cash
for share repurchase next year, adding to the $900 million to $1.1 billion in
stock buyback planned for this year.

In addition, subject to approval from its board of directors, the company will
increase its dividend by 35 percent to 5.75 cents per quarter, beginning with
the dividend payable on April 30, 2013.

Fourth-Quarter 2012 Earnings Guidance Includes Restructuring Charge

As stated last month when Xerox announced its third-quarter earnings, the
company plans to take a restructuring charge in the fourth quarter, which is
estimated to be $100 million or 5 cents a share. The restructuring is
primarily focused on improving cost efficiencies in the company’s services
business. Including the restructuring charge, Xerox now expects fourth-quarter
2012 GAAP earnings per share of 24 to 26 cents or adjusted earnings per share
of 28 to 30 cents.

Xerox will host the live video webcast of this year’s conference at 9 a.m. ET
at A replay will be available
after 5 p.m. ET, Tuesday, Nov. 13.

Forward-Looking Statements

The declaration and payment of future dividends is subject to the approval by
the company’s board of directors, in its sole discretion, after considering
various factors, including the Company’s financial condition, historical and
forecast operating results, and available cash flow, as well as any applicable
laws and contractual covenants and any other relevant factors. The Company’s
practice regarding payment of dividends may be modified at any time and from
time to time.

During this meeting, Xerox Executives will make "forward-looking statements"
as defined in the Private Securities Litigation Reform Act of 1995. The words
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “should” and
similar expressions, as they relate to us, are intended to identify
forward-looking statements. These statements reflect management’s current
beliefs, assumptions and expectations and are subject to a number of factors
that may cause actual results to differ materially. These factors include but
are not limited to: changes in economic conditions, political conditions,
trade protection measures, licensing requirements and tax matters in the
United States and in the foreign countries in which we do business; changes in
foreign currency exchange rates; actions of competitors; our ability to obtain
adequate pricing for our products and services and to maintain and improve
cost efficiency of operations, including savings from restructuring actions;
the risk that unexpected costs will be incurred; our ability to expand
equipment placements; the risk that subcontractors, software vendors and
utility and network providers will not perform in a timely, quality manner;
the risk that individually identifiable information of customers, clients and
employees could be inadvertently disclosed or disclosed as a result of a
breach of our security; our ability to recover capital investments;
development of new products and services; our ability to protect our
intellectual property rights; interest rates, cost of borrowing and access to
credit markets; the risk that multi-year contracts with governmental entities
could be terminated prior to the end of the contract term; reliance on third
parties for manufacturing of products and provision of services; our ability
to drive the expanded use of color in printing and copying; the outcome of
litigation and regulatory proceedings to which we may be a party; and other
factors that are set forth in the “Risk Factors” section, the “Legal
Proceedings” section, the “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” section and other sections of our
Quarterly Reports on Form 10-Q for the quarters ended March 31, 2012, June 30,
2012 and September 30, 2012 and our 2011 Annual Report on Form 10-K filed with
the Securities and Exchange Commission. The Company assumes no obligation to
update any forward-looking statements as a result of new information or future
events or developments, except as required by law.

About Xerox

With sales approaching $23 billion, Xerox (NYSE: XRX) is the world’s leading
enterprise for business process and document management. Its technology,
expertise and services enable workplaces – from small businesses to large
global enterprises – to simplify the way work gets done so they operate more
effectively and focus more on what matters most: their real business.
Headquartered in Norwalk, Conn., Xerox offers business process outsourcing and
IT outsourcing services, including data processing, healthcare solutions, HR
benefits management, finance support, transportation solutions, and customer
relationship management services for commercial and government organizations
worldwide. The company also provides extensive leading-edge document
technology, services, software and genuine Xerox supplies for graphic
communication and office printing environments of any size. The 140,000 people
of Xerox serve clients in more than 160 countries. For more information, visit, or
For investor information, visit

Non-GAAP Measures:

This release refers to the non-GAAP financial measure adjusted EPS (earnings
per share) - fourth-quarter 2012 and full-year 2013 guidance excludes the
amortization of intangible assets.

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Karen Arena, +1-203-849-5521
Ken Ericson, +1-410-571-0161
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