Conduent Investor Deck
May 2024
Cautionary Statements
Forward-Looking Statements
This document, any exhibits or attachments to this document, and other public statements we make may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "estimate," "expect," "plan," "intend," "will," "aim," "should," "could," "forecast," "target," "may," "continue to," "endeavor," "if," "growing," "projected," "potential," "likely," "see", "ahead", "further," "going forward," "on the horizon," and similar expressions (including the negative and plural forms of such words and phrases), as they relate to us, are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward looking. All statements other than statements of historical fact included in this presentation or any attachment to this presentation are forward-looking statements, including, but not limited to, statements regarding our financial results, condition and outlook; changes in our operating results; general market and economic conditions; statements regarding portfolio divestitures, such as the sale of the BenefitWallet HSA portfolio and Curbside Management and Public Safety Solutions business, including all statements regarding anticipated closing of such divestitures; statements regarding our expected deployable capital target; and our projected financial performance for the full year 2024 and 2025, including all statements made under the sections captioned "Debt Maturity", "FY 2023 Actuals and FY 2024 Outlook", "Divestiture Update", "Mid-Term Outlook", and "Segment Revenue Trend" within this presentation. These statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions many of which are outside of our control, that could cause actual results to differ materially from those expected or implied by such forward-looking statements contained in this document, any exhibits to this document and other public statements we make.
Important factors and uncertainties that could cause our actual results to differ materially from those in our forward-looking statements include, but are not limited to: risks related to pending dispositions, including the transfer of the Company's BenefitWallet's portfolio and the sale of the Company's Curbside Management and Public Safety Solutions businesses, including but not limited to the Company's ability to realize the benefits anticipated from such transactions, unexpected costs, liabilities or delays in connection with such transactions, and the significant transaction costs associated with such transactions; government appropriations and termination rights contained in our government contracts; the competitiveness of the markets in which we operate; our ability to renew commercial and government contracts, including contracts awarded through competitive bidding processes; our ability to recover capital and other investments in connection with our contracts; our reliance on third-party providers; risk and impact of geopolitical events and increasing geopolitical tensions (such as the wars in the Ukraine and Middle East), macroeconomic conditions, natural disasters and other factors in a particular country or region on our workforce, customers and vendors; our ability to deliver on our contractual obligations properly and on time; changes in interest in outsourced business process services; claims of infringement of third-party intellectual property rights; our ability to estimate the scope of work or the costs of performance in our contracts; the loss of key senior management and our ability to attract and retain necessary technical personnel and qualified subcontractors; our failure to develop new service offerings and protect our intellectual property rights; our ability to modernize our information technology infrastructure and consolidate data centers; expectations relating to environmental, social and governance considerations; utilization of our stock repurchase program; the failure to comply with laws relating to individually identifiable information and personal health information; the failure to comply with laws relating to processing certain financial transactions, including payment card transactions and debit or credit card transactions; breaches of our information systems or security systems or any service interruptions; our ability to comply with data security standards; developments in various contingent liabilities that are not reflected on our balance sheet, including those arising as a result of being involved in a variety of claims, lawsuits, investigations and proceedings; risks related to divestitures and acquisitions; risk and impact of potential goodwill and other asset impairments; our significant indebtedness and the terms of such indebtedness; our failure to obtain or maintain a satisfactory credit rating and financial performance; our ability to obtain adequate pricing for our services and to improve our cost structure; our ability to collect our receivables, including those for unbilled services; a decline in revenues from, or a loss of, or a reduction in business from or failure of significant clients; fluctuations in our non-recurring revenue; increases in the cost of voice and data services or significant interruptions in such services; our ability to received dividends or other payments from our subsidiaries; 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 in our Annual Reports on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K filed with or furnished to the Securities and Exchange Commission. Any forward-looking statements made by us in this presentation speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether because of new information, subsequent events or otherwise, except as required by law.
2
Cautionary Statements
Non-GAAP Financial Measures
We have reported our financial results in accordance with accounting principles generally accepted in the U.S.(U.S. GAAP). In addition, we have discussed our financial results using non-GAAP measures. We believe these non-GAAP measures allow investors to better understand the trends in our business and to better understand and compare our results. Accordingly, we believe it is necessary to adjust several reported amounts, determined in accordance with U.S. GAAP, to exclude the effects of certain items as well as their related tax effects. Management believes that these non- GAAP financial measures provide an additional means of analyzing the results of the current period against the corresponding prior period. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, our reported results prepared in accordance with U.S. GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable U.S. GAAP measures and should be read only in conjunction with our Consolidated Financial Statements prepared in accordance with U.S. GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions, and providing such non-GAAP financial measures to investors allows for a further level of transparency as to how management reviews and evaluates our business results and trends. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on certain of these non-GAAP measures. Refer to the "Non-GAAP Financial Measures" and "Non-GAAP Reconciliations" sections in this document for a discussion of these non-GAAP measures and their reconciliation to the reported U.S. GAAP measures.
3
Conduent is squarely focused on client success and enhancing performance, experience and value in their everyday operations, and at every moment where they interact with their end users.
Performance
Optimizing processes to be more efficient, flexible and secure
Experience
Improving experiences, engagement and loyalty of end users
Our clients
Value
Driving valuable outcomes and reducing costs at scale
Our Goal: Driving Shareholder Value
Strengths
Large and Favorable Market Opportunities
Technology-led Capabilities
Proven Outcomes for Marquee Clients
Shareholder
Value
Outcomes
Revenue Growth
Improved Margin
Expanded Free Cash Flow
Strong Talent and Culture | Deployable Capital |
5
Our History
1988: ACS business launched | 2010: ACS is acquired |
Acquisitions: | |
OBS - Commercial Data Processing | Acquires Lateral Data - |
Legal Solutions & Smart Data | |
CSX National System - Transportation | |
CIC/DISC - Outsourcing | |
Healthtech Corp - Commercial Healthcare | Acquires Strata |
and Bunch - | |
Transfirst JV - Government EBT | Workers Comp |
Genix Group - BPO/ITO | Exits ITO |
business with | |
BRC Holdings & Computer Data Systems - Government | sale to ATOS |
Consultec - Government Healthcare |
Global Government Solutions - Government ITO
IMS Solutions & AFSA Data Corp - Gov't
Buck - HRO/TBO
ASCOM Holdings - Transportation
LiveBridge - Customer Care
Primax - Payment Integrity
eServices Group Int'l - BPO
2017: Conduent spin off
Divestitures:
HR Consulting and Actuarial Solutions
Constituent Government Software Solutions
Select Customer Care Contracts
Commercial Vehicle Operations
2019: New Management
New and more agile operating model established
Enterprise investments in storage,
compute, security & networking
Opens Global Command Center
Data Center Consolidation
- East Windsor & Sandy
Divests Midas Software
Simplifies to 3 business units
Divestiture of BenefitWallet
Divestiture of Curbside
Management and Public
Safety businesses
1988 1990 1992 1994 1996 1998 2000 2002 2004 | 2006 2008 | 2010 | 2012 | 2014 | 2016 | 2018 | 2020 | 2022 | 2024 |
ACS: Serial Acquisitions | Part of Xerox | Conduent Today |
6
Conduent at-a-Glance
Creating exceptional outcomes for our clients and the millions of people who count on them
Businesses
Commercial | • Customer Experience |
Improving customer | Management |
• Business Operations | |
experiences and business | |
Solutions | |
process efficiencies | |
$1,932M* | • Healthcare Claims and |
Administration | |
Recognitions
Industry
Marquee Client Base
6 of Top 10
U.S. banks
4 of Top 5
aerospace firms
Government
Powering public sector service delivery and constituent-centered goals
$1,094M*
- Payments and Child Support
- Eligibility and Enrollment
- Government Healthcare Solutions
Culture
47 of 50
states
9 of Top 10
U.S. health plans
Transportation | • Road Usage Charging |
Creating smarter, safer | • Transit |
journeys across the | • Public Safety and |
transportation ecosystem | Curbside Management |
$696M* | |
*2023 Full Year Revenue |
Global | ~57K | 25 | 100+ |
Presence | employees | countries | delivery locations |
4 of Top 5
automakers
Nearly Half of
Fortune 100
companies are Conduent clients
7
Combining Core Capabilities to Drive Outcomes
1
2
3
4
5
6
Enhance customer experiences across multiple channels
Digitize and manage documents
Process digital payments
Automate healthcare-related claims
Streamline business administration functions
Provide hardware technology and system integration
Commercial
Government
Transportation
We provide solutions through a combination of these technology-ledcapabilities
to deliver outcomes at scale across commercial, government and transportation sectors
8
Creating Valuable Outcomes for Clients
Experience
Performance
Value
Increased sales, customer and employee satisfaction, first call resolution
Faster commutes, improved convenience, reduced congestion
Increased accuracy, faster processing, greater compliance
Faster, more secure payments, increased fraud prevention
Reduced costs, increased efficiency and agility
Greater revenue collection, increased utilization
Addressing clients' needs to streamline operations, reduce cost, elevate the customer experience and enable scale
9
Commercial Solutions | At a Glance
Robust portfolio of technology-led solutions enhancing customer experience and business process efficiency end-to-end across the enterprise
Customer Experience Management
- CXNow
- Multichannel Communications
- Transformation/Analytics
Business Operations Solutions
Delivering connected, omnichannel customer experiences throughout the customer life cycle.
ISG Provider Lens: Leader | 2.3B |
Customer Experience Services US | |
Digital Operations, AI & Analytics, | CX interactions |
Social Media Services, WFH | annually |
• Automated Document Solutions | Transforming business and HR | ISG Provider Lens: Rising Star in | 5.4B |
• Banking Solutions | processes by automating and | P2P Finance & Accounting Outsourcing | |
• Finance, Accounting and Procurement | streamlining mission-critical operations | Services Global | Documents |
• Legal and Compliance Solutions | through technology solutions. | NelsonHall Leader in Next Generation | captured and |
• Total Benefits Outsourcing | Benefits Administration | classified | |
Casualty and Healthcare Solutions | |||
• Workers Comp Claims Solutions | Streamlining healthcare and casualty | NelsonHall NEAT Leader in | 9 / 10 |
• Healthcare Claims Solutions | insurance processes, ensuring | Healthcare Payer Operational | |
• Pharma and Life Sciences Solutions | payment accuracy and improving | Transformation | Top U.S health |
• Payment Integrity | health outcomes. | Everest Leader in Healthcare Payer | |
insurance | |||
Operations | companies are | ||
clients | 10 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Conduent Inc. published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 22:14:26 UTC.