Xerox Holdings Corp.

Overview Key strengths Key risks Good market positions in core enterprise print and managed service segments in U.S. and Europe regions. Highly competitive industry and long-term structural decline in printer markets pressure profitability. Contractual client agreements and low capex needs support free cash flow generation. Evolving business strategies and financial policy may weaken credit metrics. High cash balances of $1.7 billion and low adjusted leverage at about 1.2x provide some flexibility to invest in growth areas and fund shareholder returns. Supply chain challenges and hybrid work environment exacerbate profit pressures and lower free cash flow generation. We expect some revenue and profit stability in 2022 and forecast annual free operating cash flow of $350 million-$400 million (equivalent to about $450

...Uncertain macro backdrop and supply chain constraints hurt margins, but we expect adjusted leverage to remain low. We expect some revenue and profit stability in 2022 and forecast annual free operating cash flow of $350 million-$400 million (equivalent to about $450 million adjusted free operating cash flow [FOCF]). That should support adjusted leverage below our 2.5x downgrade...

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