Shaun Pantling

Director & General Manager XBS, Xerox Europe

November 26th, 2002

Agenda

Agenda

Xerox & Xerox Business Services Business issues & outsourcing Our value proposition Customer examples & proven successes Why Xerox Business Services

Xerox Corporation

Dedicated global services business Focus on document & information intensive processes Encompassing all Xerox services (apart from “break-fix”) Global business base of some $4 Billion No 1 in Outsourced Document Services 6000 clients in 60 countries

Over 15,000 employees on Customer Sites

Xerox Corporation Revenue $17.8bn Services, Solutions & Products

Managed Services

Xerox Business Services

We provide value-added managed document services to ourcustomers, helping them achieve competitive advantages,increased shareholder value and profits, faster time to marketand cost efficiency.

XBS World Wide $4.0b revenue 15,000 employees 6,000 outsourced

contracts XBS in 50 countries

XBS Europe $600m revenue 4,100 employees 1,500 outsourced contracts XBS in 21 European

countries

Geographies CustomersEurope, Developing Markets Siemens, British Telecom, Organisation - Middle East, India, Nokia, Cable & Wireless, KPMG,Eurasia, Africa and Latin America. Deutsche Bank, Lloyds TSB, North America Ericsson, EDS, Dept Health,

Merrill Lynch

Why Outsource

Cost control & discipline

Achieve best practice

Improve service quality

Focus on core competencies

Better utilise and leverage new technology

Economies of scale

Enhance capability to develop new products

Access to new skills

Reduce headcount

Outsourcing Market Trends

In the short term, outsourcing continues to grow because companies are focusing on cutting costs during the economic downturn.

In the long term, outsourcing will continue to be attractive proposition because enterprises will value flexible contractual relationships with trusted suppliers.

Outsourcing as a purchase method will account for more than half of the IT Services market in Western Europe by 2005.

73% of Global 1000 companies currently outsource some or all of their next generation information delivery systems.

Business processes, including printing services account for 55% of the outsourcing activity among Global 1000 companies

Gartner, PriceWaterhouseCoopers

Assessment methods to establish future business model

Continuously Benchmark and Measure Performance

• New Business Model

• OperationalExcellence

Future Business Model

New Business Model• Cost Reduction• Productivity Enhancements• Value Creation• Better Content & Document

Management• Reduction of Suppliers

• People• Process• Technology

Current State Assessment

Old Business Model

Implement Change Strategy

People / Culture

Organization Structure

Technology

T R A N S F O R M

Process / PerformanceManagement

Global IT OrganisationCase Study

Document output and office infrastructure costs were not understood and believed to be out of control.

Desire to optimization existing technology investments rather than acquisition of new applications

Office Managed Print Service

10% saving in first year, clear line of sight to potential for 25% savings. No additional financial investment required & no disruption to end users.

THE PROBLEM

THE SOLUTION

THE RESULTS

Xerox Office Services

Siemens (ICM)Case Study

Extend and enable new logistics/supply chain concepts to user manuals Deliver cost savings and worldwide consistency and process quality

Europe wide order management, validation and distribution of user manuals integrated with ERP system.

Shorter lead time and supply chain flexibility Progressive cost savings - reduced cost per manual Xerox as worldwide partner provides consistent process quality.

THE PROBLEM

THE SOLUTION

THE RESULTS

Supply Chain Management for User Manuals

Why Xerox Business Services?

We work to understand clients’ business and work practices

We help leverage existing infrastructure and operations

We understand the combination of people, processes and technology

We deliver innovation from world-class research centres

We focus on providing measurable and tangible results for our clients

6000 clients can not be wrong.