Company Profile

Xerox Revenue by Reporting Segment – 2009
In 2009, we reported our financial results through three segments: Production, Office and Other. With the February 2010 acquisition of Affiliated Computer Services (ACS), our segments changed to Technology, Services and Other. Financial information for operating segments is presented in our quarterly and annual reports available at www.xerox.com/investor.

Production

$4.5 Billion
Our Production segment provides high-end digital monochrome and color systems designed for customers in the graphic communications industry and for large enterprises.

Office

$8.6 Billion
Our Office segment serves global, national and small to mid-size commercial customers, as well as government, educational and other public sector customers.

Other

$2.1 Billion
Our Other segment primarily includes revenue from paper sales, wide-format systems, value-added services and Global Imaging Systems network integration solutions and electronic presentation systems.

Xerox Corporation – Who We Are and What We Offer
We are the world’s leading enterprise for business process and document management. You know us well for our leadership in document technology and services that include printers, multifunction devices, production publishing systems, managed print services and related software. We continue to build on this heritage of innovation today.

And now, through our acquisition of Affiliated Computer Services (ACS), we are also a leader in business process and IT outsourcing. We offer global services from claims reimbursement and electronic toll transactions to the management of HR benefits and customer care centers.

The new Xerox, 133,000 of us worldwide, is dedicated to innovation, service and giving our customers the freedom to focus on what matters most: your real business.

What We Offer
We provide the industry’s broadest portfolio of document technology, services and software; and the most diverse array of business process and IT outsourcing support.

Technology

The innovation that we bring to document systems, software and integrated solutions is unparalleled in the industry and is built into our broad portfolio of technology for businesses of any size, in any industry, anywhere around the world.

For the Workplace
Our broad array of document devices enables us to place the right solution for any workplace and for any office, large or small. We offer:

• Multifunction systems, color and black-and-white, which combine printing, copying, faxing and scanning
• Color network printers, solid ink and laser
• Digital copiers and fax systems
• Software to simplify how information is stored and shared
• Document scanners and other computer peripherals to increase workplace efficiency
• Audio-visual solutions for advanced on-site and online communication.

For Production Print Environments
With digital production publishing, we created the on-demand printing industry, and our technology has allowed it to evolve. Books can now be printed for one or for thousands, and marketing materials can be customized for each and every prospect.

For the graphic arts, marketing and production environments, we offer these printing systems and services:

• Digital printers and presses, both color and black-and-white
• Wide-format and continuous-feed printers
• Tools to help develop and grow a profitable digital print business
• Solutions for short-run book publishing, on-demand documents, transactional applications, cross-media customized campaigns and more
• Workflow software to simplify how print jobs are created and managed.

Services

Document Outsourcing
To boost productivity and lower costs, our industry-leading, end-to-end document services include: helping businesses develop online document archives; analyzing how employees can most efficiently share documents and knowledge in the office; operating in-house print shops or mailrooms; and building Web-based processes for personalizing direct mail, invoices, brochures and more. Through these services, we:

• Help our clients save up to 30% on printing costs through Managed Print Services that optimize the use of document systems across an entire enterprise
• Simplify document-driven processes, like forms processing and records management
• Manage in-house print operations and special events by handling technology procurement and print/copy centers
• Make information easier to manage and find through digital imaging, archiving and indexing
• Generate a better return through personalized, multi-channel marketing communications
• Improve commercial print operations, sales and profits through document outsourcing
• Mitigate and reduce risk with electronic discovery.

Business Process Outsourcing
We are the largest worldwide diversified business process outsourcing company with focused offerings in education, transportation, communication, healthcare, government, financial services, manufacturing, consumer goods and retail.

Our services include:

• Human capital management, including total benefits outsourcing and strategic learning services
• Finance and accounting outsourcing in areas such as order-to-cash, payroll processing, travel and expense accounting, and treasury and cash management
• Customer care services for activating accounts, collections, inside sales and product/life cycle support
• Services exclusive for federal, state and local government in areas that range from claims processing and human services support to transportation solutions for automated toll collections and traffic enforcement cameras.

Information Technology Outsourcing
We specialize in designing, developing and delivering effective IT solutions. Our secure data centers help desks and managed storage facilities around the world provide a reliable IT infrastructure that minimizes the chance of disruption to our clients’ daily operations.

Our services include:

• Data center, help desk, network, server and desktop support
• Managed storage
• Remote infrastructure management
• Utility computing
• Disaster recovery and security services
• Telecommunication expense management
• Asset management services
• IT strategy and architecture services
• Applications portfolio management and maintenance.

Research and Development
Innovation keeps us in the forefront of our industry. Four percent of our revenue is dedicated to R&D and engineering. We have four R&D centers in the U.S., Canada and Europe, and an innovation hub in India that focus on color science, computing, digital imaging, work practices, electromechanical systems, novel materials and other disciplines. Xerox holds more than 9,400 active U.S. patents.

Xerox around the World
Xerox customers include small and mid-size businesses, graphic communications companies, government entities, educational institutions, Fortune 1000 companies and firms in document-intensive industries such as healthcare, legal and financial services. Xerox offerings are sold through: our worldwide sales force; a network of independent agents and concessionaires, dealers, value-added resellers and systems integrators; Global Imaging Systems, a wholly owned subsidiary of Xerox; and the Web.

We have:

• More than 8,000 sales professionals, 46,000 employees directly serving our clients through on-site operations or off-site delivery centers and 12,900 technical service employees
• More than 6,500 agents and concessionaires and 10,000 technology resellers that extend Xerox’s local and global reach
• Alliances with top IT and business partners that integrate information technologies and services into our customer solutions.

Revenues by Geography
($ billions)

We operate in more than 160 countries worldwide
and serve a $500 billion+ market.

In 2009, about one-half of our revenue was generated from non-U.S. customers. Our largest subsidiary outside the U.S. is Xerox Limited, which operates predominantly in Europe. We conduct our developing markets operations in Latin America, Brazil, the Middle East, India, Eurasia and Central-Eastern Europe, and Africa through operating companies, subsidiaries and distributors.

Fuji Xerox, an unconsolidated entity in which we own a 25% interest, develops, manufactures and distributes document processing products and services in Japan, China, Hong Kong and other areas of the Pacific Rim, Australia and New Zealand.

During 2009, we entered into a definitive agreement to acquire Affiliated Computer Services (ACS). The acquisition closed on February 5, 2010. We also completed acquisitions to further strengthen our distribution capacity and expand our reach into the small to mid-size market. Global Imaging Systems, Inc. acquired ComDoc Inc., one of the larger independent office technology dealers in the U.S.

Xerox Market Opportunity
($ billions)

Document Management: $132 billion
The innovation that we bring to document systems, software and integrated solutions is unparalleled in the industry. Our industry-leading, end-to-end document services help companies boost productivity and lower costs.

Business Processing Outsourcing: $150 billion+
We are the largest worldwide diversified business process outsourcing company with focused offerings in education, transportation, communications, healthcare, government, financial services, manufacturing, consumer goods and retail.

Information Technology Outsourcing: $250 billion
We specialize in designing, developing and delivering effective IT solutions.

Our Values
Since our inception, we have operated under the guidance of six core values:

• We succeed through satisfied customers.
• We deliver quality and excellence in all we do.
• We require premium return on assets.
• We use technology to develop market leadership.
• We value our employees
• We behave responsibly as a corporate citizen.