Xerox Reports Progress on Key Priorities to Drive Business Improvement; Delivers Strong Cash Flow and Operating Margin Expansion

Third-Quarter 2018 Highlights:

• Operating cash flow of $274 million increases $717 million or $157 million on an adjusted basis

• Adjusted Operating margin of 13.1 percent expands 1.0 point year-over-year

• GAAP EPS from continuing operations of 34 cents, down 33 cents year-over year, driven by an incremental non-cash charge of $95 million associated with the 2017 enactment of the U.S. Tax Act

• Adjusted EPS of 85 cents, down 4 cents year-over-year, driven by higher year-over-year tax rate

• Returned $353 million to shareholders in the form of share repurchases and dividends; increasing share repurchase expectations for 2018 to $700 million from $500 million