STARTEEPO Sends Letter to Xerox Board in Advance of Third-Quarter Earnings

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

“Our open letter to the Board in early September helped spark a lively conversation about the future of this iconic company among investors and throughout the print industry.”

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

“Despite these efforts, Xerox’s share price still does not reflect the significant value we see in the Company, a gap recently confirmed by Citi’s downgrade of Xerox stock to reflect the challenge of executing in “a structurally challenged print market.””

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

“We greatly appreciate the willingness members of the Board and management team have demonstrated to consider our ideas to create meaningful value for shareholders.”

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

“As a committed, long-term investor in Xerox, we continue to hold a deep conviction in the compelling opportunity to create shareholder value through bold action beyond simply executing the Company’s existing strategy.”

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

“We believe that the Company can create significant value for shareholders by increasing transparency about the performance of Xerox Financial Services (XFS), evaluating strategic alternatives for that business unit, and continuing to deleverage the Company’s balance sheet, all without relaxing capital discipline.”

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

“We estimate that, based on precedent transactions, the XFS business could be worth roughly $7.69 per share – more than double the current share price for the entire Company.(1)”

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

“We believe that, in its earnings disclosures, Xerox needs to help investors better understand and properly value this important business unit by providing greater detail, including its receivables, funding, spread, credit performance, and return on equity.”

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

“We have also called upon the Board to hire financial advisors to undertake a formal strategic review of the XFS business, evaluating all available paths to unlock value.”

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

“The successful deleveraging of Xerox’s balance sheet would likely lead to a re-rating of the stock.”

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

“In such a scenario, we believe that Xerox could eventually be worth up to $3.3 billion in equity value to potential suitors, representing more than $18 per share, should the Board choose to pursue additional strategic alternatives in the future.(1)”

František Bostl, Founder and Chairman, STARTEEPO SICAV a.s.

“Rebuilding American Icons: European Activists Accelerating Change at U.S. Companies”