STARTEEPO Comments on Xerox’s Disappointing Third Quarter Results

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“Since announcing our substantial investment in Xerox earlier this year, we have privately and publicly encouraged the Xerox Board of Directors to take bold action to address the persistent gap between Xerox’s share price and the opportunity we see to unlock significant shareholder value.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“In light of the disappointing quarterly results and reduced guidance announced yesterday, we intend to significantly intensify our existing dialogue with management and the Board.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“It is clear from the third quarter results that, in 2027, Xerox must execute more effectively and make greater progress on cash flow recovery and deleveraging.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“In that regard, we welcome the Company’s prioritization of debt reduction and balance sheet improvement and recognize management’s ongoing efforts to refinance and manage liabilities.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“We support the suspension of the common and preferred dividends as a responsible decision to preserve cash.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“We were also pleased to see Xerox respond to our request for increased transparency around the financial performance of Xerox Financial Services (XFS) by providing detailed information about the business unit in the Company’s third quarter presentation.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“We regard XFS, which finances customer equipment purchases, as the hidden gem in Xerox’s portfolio, and believe that through this improved transparency, investors will be able to better understand the value of the business unit.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“However, we believe it is imperative at this juncture that the Company’s Board and management team take more aggressive steps to increase shareholder value, including exploring strategic alternatives for XFS and potentially Xerox as a whole.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“We offer our transaction advisory expertise, capital markets experience, and European relationships in support of these efforts.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“In addition, we believe there is a near-term opportunity for Xerox to restructure its outstanding warrants to facilitate a meaningful debt-for-equity exchange before year-end and use the proceeds to help deleverage the Company.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“Through its own participation in warrant exercises, STARTEEPO has already helped Xerox retire several million dollars of outstanding debt principal, demonstrating the potential of this mechanism.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“This approach could accelerate debt reduction without using the Company’s cash, and we believe the benefits of lower leverage would outweigh the dilution associated with issuing additional shares.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“As we have said previously, we believe that successful deleveraging of Xerox’s balance sheet will likely lead to a re-rating of the stock and better position Xerox to participate in industry consolidation and command a premium valuation.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“We have previously stated our belief that Xerox could be worth roughly $3.3 billion, or $18 per share, based on precedent transactions, should it decide to pursue additional strategic alternatives in the future.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“While we believe this remains achievable, realizing this potential will require bold and decisive action from Xerox’s management and Board.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“Without a more aggressive approach to deleveraging, operational improvements, and strategic alternatives, we believe this value could progressively erode over time, making timely action increasingly critical.”

František Bostl, Founder and Chairman of the Board of STARTEEPO SICAV a.s.

“We remain convinced of Xerox’s long-term value and will continue to evaluate our investment exposure and how we can best assist the Company in creating shareholder value.”