DXC Technology Co (DXC) 2024 Q4 法說會逐字稿

Hello, and welcome to the DXC Technology Q4 Earnings Call. (Operator Instructions)

您好，歡迎參加 DXC Technology 第四季財報電話會議。 （操作員說明）

I would now like to turn the conference over to John Sweeney, Vice President, Investor Relations. You may begin.

我現在想將會議交給投資者關係副總裁約翰‧斯威尼 (John Sweeney)。你可以開始了。

Thank you, and good afternoon, everybody. I'm pleased that you're joining us for the DXC Technology's Fourth Quarter Fiscal Year 2024 Earnings Call. Our speakers on the call today will be Raul Fernandez, President and CEO; and Rob Del Bene, our EVP and CFO. The call is being webcast at DXC Investor Relations website, and the webcast includes slides that will accompany this discussion today.

謝謝大家，大家下午好。我很高興您能參加 DXC Technology 2024 財年第四季財報電話會議。今天電話會議的發言人是總裁兼首席執行官勞爾·費爾南德斯 (Raul Fernandez)；以及我們的執行副總裁兼財務長 Rob Del Bene。這場電話會議正在 DXC 投資者關係網站上進行網路直播，網路直播包括今天討論中附帶的幻燈片。

Today's presentation includes certain non-GAAP financial measures, which we believe provide useful information to our investors. In accordance with SEC rules, we provide a reconciliation of these measures to their respective and most directly comparable GAAP measures. These reconciliations can be found in the tables included in today's earnings release and in the webcast slides.

今天的演示包括某些非公認會計準則財務指標，我們相信這些指標為我們的投資者提供了有用的信息。根據 SEC 規則，我們提供了這些指標與各自最直接可比較的 GAAP 指標的調整表。這些調節可以在今天的收益發布和網路廣播幻燈片中包含的表格中找到。

Certain comments we make on the call will be forward-looking. These statements are subject to known risks and uncertainties, which could cause actual results to differ materially from those expressed on the call. A discussion of these risks and uncertainties is included in our annual report on Form 10-K and other SEC filings. I'd now like to remind our listeners that DXC Technology assumes no obligation to update the information presented on the call, except as required by law.

我們在電話會議中發表的某些評論將具有前瞻性。這些陳述受到已知風險和不確定性的影響，可能導致實際結果與電話會議中表達的結果有重大差異。對這些風險和不確定性的討論包含在我們的 10-K 表格年度報告和其他 SEC 文件中。現在我想提醒我們的聽眾，DXC Technology 不承擔更新電話會議中提供的資訊的義務，除非法律要求。

And with that, I'd like to introduce DXC's President and CEO, Raul Fernandez. Raul?

接下來，我想介紹一下 DXC 的總裁兼執行長 Raul Fernandez。勞爾？

Thank you. I will give a brief introduction, review our financial performance, update you on the progress we are making with our offerings, then Rob will take us through the fourth quarter financial results and discuss our fiscal year '25 guidance. I will also make some final remarks before opening the call up for questions.

謝謝。我將進行簡要介紹，回顧我們的財務業績，向您介紹我們在產品方面取得的最新進展，然後 Rob 將向我們介紹第四季度的財務業績並討論我們 25 財年的指導。在開始提問之前，我還會做一些最後的演講。

In Q4 of fiscal year '24, total revenue declined 5% on a constant currency basis, above our expectation; adjusted EBIT margin of 8.4%, down 50 basis points year-over-year. Non-GAAP EPS of $0.97 was also above our guidance range. Free cash flow equaled $155 million for a total of $756 million for the full year. This is the third consecutive year that DXC has achieved free cash flow of more than $700 million.

24 財年第四季，以固定匯率計算，總營收下降 5%，超出我們的預期；調整後息稅前利潤率為 8.4%，年減 50 個基點。非 GAAP 每股收益 0.97 美元也高於我們的指導範圍。全年自由現金流為 1.55 億美元，總計 7.56 億美元。這是DXC連續第三年自由現金流超過7億美元。

While we met or beat expectations in Q4, we know we can operate at a higher level and are not satisfied with the current state.

雖然我們在第四季度達到或超出了預期，但我們知道我們可以在更高的水平上運營，並且對當前狀態不滿意。

In my 5-month tenure, I have met with more than 3 dozen customers globally, along with thousands of our employees in small and large settings, in-person and virtual. I've engaged with dozens of investors and have successfully recruited very strong, experienced executives to join our team. I believe we have a global team that is reenergized to make the company better and more effective.

在我的 5 個月任期內，我與全球 30 多個客戶以及我們的數千名員工進行了會面，無論是在大大小小的環境中，無論是現場還是虛擬。我與數十位投資者進行了接觸，並成功招募了非常強大、經驗豐富的高階主管加入我們的團隊。我相信我們擁有一支充滿活力的全球團隊，能夠讓公司變得更好、更有效率。

I've also gotten a deeper understanding of all of our business units, so let me quickly recap a few thoughts, starting with Insurance.

我還對我們所有的業務部門有了更深入的了解，所以讓我快速回顧一些想法，從保險開始。

DXC is the largest provider of insurance software and insurance business process services globally from origination to claims processing. We are the category leader providing software and services in 3 out of 4 insurance segments: life and wealth, global specialty, and reinsurance. As an example, our technology and services process 1 in 5 property and casualty transactions worldwide. Our global customer base includes 21 of the top 25 global insurance carriers.

DXC 是全球最大的保險軟體和保險業務流程服務供應商，提供從發起到索賠處理的服務。我們是在四分之三的保險領域提供軟體和服務的類別領導者：人壽和財富、全球專業保險和再保險。例如，我們的技術和服務處理全球五分之一的財產和傷亡交易。我們的全球客戶群包括全球 25 強保險公司中的 21 家。

In short, we are a key strategic technology partner, supporting global insurance companies with their customers, their agents, and their employees.

簡而言之，我們是重要的策略技術合作夥伴，為全球保險公司及其客戶、代理人和員工提供支援。

The strong recurring and reoccurring revenue, coupled with 90-plus percent customer retention and an average customer tenure of 18 years, makes this a very interesting business unit for me to focus on. As Rob will comment, the insurance software and services business, representing approximately 3/4 of the total insurance revenue, grew at a very respectable 4.5% in the quarter. It's an incredibly strong foundation to build on and continue to grow and also to rotate our revenue mix more towards SaaS and reoccurring services. So we are actively working on a focused plan to further accelerate the growth of this business unit and also highlight the value of its leadership role in the industry and its mix of software and reoccurring services.

強勁的經常性和經常性收入，加上 90% 以上的客戶保留率和平均 18 年的客戶任期，使這成為我關注的一個非常有趣的業務部門。正如 Rob 將評論的那樣，保險軟體和服務業務約佔保險總收入的 3/4，本季成長了 4.5%，非常可觀。這是一個令人難以置信的堅實基礎，可以在此基礎上繼續發展，也可以使我們的收入組合更多地轉向 SaaS 和重複服務。因此，我們正在積極制定一項重點計劃，以進一步加速該業務部門的成長，並強調其在行業中的領導作用及其軟體和重複服務組合的價值。

Continuing with GBS. We're bringing together the best capabilities of our Analytics & Engineering and Applications business now called Consulting & Engineering Services with industry veteran Howard Boville as our general manager.

繼續 GBS。我們將分析與工程和應用業務的最佳能力（現在稱為諮詢與工程服務）與行業資深人士霍華德·博維爾（Howard Boville）作為我們的總經理結合在一起。

Our Consulting & Engineering Services business has a rich and extensive history of driving transformative change for some of the world's biggest brands. In financial services, we provide core banking solutions to numerous banks globally. Within automotive and manufacturing, we are deeply involved in their digital transformation. We enable major auto brands to operate their research and development efforts for autonomous driving on our platform, enabling the ingestion and analysis of large data sets. We have built and run in-car infotainment systems across most of the luxury brands.

我們的諮詢和工程服務業務在推動一些全球最大品牌的變革方面擁有豐富而廣泛的歷史。在金融服務領域，我們為全球許多銀行提供核心銀行解決方案。在汽車和製造業領域，我們深入參與其數位轉型。我們使主要汽車品牌能夠在我們的平台上進行自動駕駛研發工作，從而實現大數據集的攝取和分析。我們已經為大多數奢侈品牌建造並運行了車載資訊娛樂系統。

While our technology solutions and operations are critical for our customers, our execution is below average, and we are focused on improving the profitability of our Consulting & Engineering Services business unit.

雖然我們的技術解決方案和營運對客戶至關重要，但我們的執行力低於平均水平，我們專注於提高諮詢和工程服務業務部門的獲利能力。

Moving on to security. A key thing to note about our security business is that it is an enabler of many of our other services. Customers in our ITO and Modern Workplace rely on us to provide services in a secure, resilient way. Our security teams embed themselves in those offerings to do that in cooperation with our clients.

繼續安全。關於我們的安全業務，需要注意的一個關鍵點是它是我們許多其他服務的推動者。我們的 ITO 和 Modern Workplace 客戶依賴我們以安全、有彈性的方式提供服務。我們的安全團隊將自己融入這些產品中，與我們的客戶合作做到這一點。

We have over 3,000 security professionals operating across 8 global security operations centers where we provide around-the-clock coverage for our customers. As cyber threats increase by the day, not a week goes by that our teams are not called in to assist companies dealing with a security incident. The pace and complexity of these attacks are growing as the regulatory requirements for companies dealing with them.

我們在 8 個全球安全營運中心擁有 3,000 多名安全專業人員，為客戶提供全天候服務。隨著網路威脅與日俱增，我們的團隊每週都會被召集來協助公司處理安全事件。隨著處理此類攻擊的公司的監管要求不斷提高，這些攻擊的速度和複雜性也不斷增加。

Our focus in the security business is to continue to leverage our expertise to enhance our GBS and GIS offerings while also focusing on accelerating growth of our stand-alone services. With the recent addition of several industry veterans, we expect to enable that growth.

我們在安全業務上的重點是繼續利用我們的專業知識來增強我們的 GBS 和 GIS 產品，同時也專注於加速我們的獨立服務的成長。隨著最近幾位行業資深人士的加入，我們預計將實現這一增長。

Moving on to Cloud & ITO. For our Cloud & ITO offering, we provide business and mission-critical services for some of the world's most essential workloads. As I have spent time in the business, I meet more and more customers who reiterate how critical our work is. Many of the world's largest airlines, energy companies, financial institutions, along with government organizations, count on DXC for the systems at the heart of their business. Our teams around the globe work 24/7 to keep their operations running seamlessly and securely. This is a core competency of the company.

轉向雲端和 ITO。對於我們的雲端和 ITO 產品，我們為世界上一些最重要的工作負載提供業務和關鍵任務服務。隨著我在這個行業工作了一段時間，我遇到了越來越多的客戶，他們重申我們的工作是多麼重要。全球許多最大的航空公司、能源公司、金融機構以及政府組織都依賴 DXC 作為其業務核心的系統。我們遍佈全球的團隊 24/7 全天候工作，以確保營運無縫、安全地運作。這就是公司的核心競爭力。

We operate across the entire technology domain from legacy core mainframes all the way through the most cutting-edge serverless cloud environments on AWS, Azure, and Google Cloud. As our customers modernize their estates, moving on to more cloud and modern architecture, often with the help of our GBS business unit, we are well positioned to help them securely operate across multiple environments. This is the foundation we are building on as we pivot our focus of this business to high-quality, profitable, cash-generating service revenue and away from the heavy hardware, software, and data center outsourcing style deals of the past, which drove higher revenue at the expense of profit.

我們的業務涵蓋整個技術領域，從傳統核心大型主機一直到 AWS、Azure 和 Google Cloud 上最前沿的無伺服器雲端環境。隨著我們的客戶對其資產進行現代化改造，轉向更多的雲端和現代架構，通常在我們的 GBS 業務部門的幫助下，我們有能力幫助他們在多個環境中安全運作。這是我們建立的基礎，因為我們將業務重點轉向高品質、獲利、產生現金的服務收入，並擺脫過去的重型硬體、軟體和資料中心外包式交易，這些交易推動了更高的收入以利潤為代價的收入。

Continuing with Modern Workplace. We support over 7 million devices and employees all day every day. The employee experience is more mission-critical than ever. Today, we operate services with a combination of human and nonhuman workforce globally and at scale. Driven by AI, we believe we will reach a point soon where at least 75% of our workforce capacity is nonhuman. We are building and demonstrating expertise in how to manage the nonhuman workforce at this scale.

繼續現代工作場所。我們每天為超過 700 萬台設備和員工提供支援。員工體驗比以往任何時候都更為關鍵。如今，我們在全球範圍內大規模地透過人類和非人類勞動力的組合來運作服務。在人工智慧的推動下，我們相信我們很快就會達到至少 75% 的勞動力非人類的水平。我們正在建立並展示如何管理如此規模的非人類勞動力的專業知識。

In dialogue across our customer base, the message is clear, embracing AI technology is a central part of their digital strategy going forward, and we are well positioned to lead this.

在我們與客戶群的對話中，傳達的訊息很明確：採用人工智慧技術是他們未來數位策略的核心部分，而我們有能力引領這項策略。

As I mentioned before, and it's even more clear to me now, there were missed opportunities in the past to rationalize systems, processes, legal entities, go-to-market, and delivery functions. Therefore, to strengthen our market position, we are undertaking a restructuring initiative aimed at simplifying and enhancing our operational efficiency. We will simplify our processes, increase visibility to eliminate redundancies, reduce costs, improve resource management, and ultimately drive a more streamlined, agile and competitive organization.

正如我之前提到的，現在我更清楚，過去錯失了合理化系統、流程、法律實體、上市和交付職能的機會。因此，為了加強我們的市場地位，我們正在重組舉措，旨在簡化和提高我們的營運效率。我們將簡化流程、提高可見性，以消除冗餘、降低成本、改善資源管理，最終推動組織更加精簡、敏捷和有競爭力。

One specific example of this enterprise initiative is consolidating our 5 acquired enterprise business systems and optimizing our back-end office functions. We anticipate not only a material reduction in our operating costs but also improvements in our service delivery and responsiveness to our customers. We are also aligning our organizational structure to support streamlined operations with improved and faster decision-making. This realignment will make us more competitive.

這項企業計畫的一個具體例子是整合我們收購的 5 個企業業務系統並優化我們的後端辦公功能。我們預計不僅會大幅降低營運成本，還會改善我們的服務交付和對客戶的回應能力。我們也正在調整我們的組織結構，以透過改進和更快的決策來支援簡化的營運。這次調整將使我們更具競爭力。

Now Rob will walk you through the financials.

現在，羅布將帶您了解財務狀況。

Thank you, Raul, and good afternoon, everyone, and thanks for joining our call. Today, I'll review our fourth quarter financial results and then provide you with our outlook for the full year and for the first quarter of fiscal '25.

謝謝勞爾，大家下午好，謝謝您加入我們的電話會議。今天，我將回顧我們第四季度的財務業績，然後向您提供我們對全年和 25 財年第一季的展望。

Total organic revenue growth declined 4.9% year-to-year, ahead of our fourth quarter guidance. GBS revenue was nearly flat while GIS top line declined 9.3%.

總有機收入成長年減 4.9%，高於我們第四季的指引。 GBS 收入幾乎持平，而 GIS 收入下降 9.3%。

Adjusted EBIT margin was 8.4%, above the top end of our guidance, representing an 80 basis point improvement sequentially, driven by our cost reduction initiatives.

調整後息稅前利潤率為 8.4%，高於我們指導的上限，在我們降低成本措施的推動下，環比提高了 80 個基點。

Margin was down 50 basis points year-to-year, primarily driven by lower noncash pension income and the impact of gains from asset sales booked in the fourth quarter of fiscal '23.

利潤率較去年同期下降 50 個基點，主要是由於非現金退休金收入下降以及 23 財年第四季資產出售收益的影響。

Non-GAAP EPS was $0.97, down $0.05 from last year's fourth quarter. The year-to-year change was driven by a negative $0.13 adjusted EBIT impact, higher taxes of $0.08 and a noncontrolling interest impact of $0.03. These reductions were partially offset by a $0.19 benefit from our share repurchase program.

非 GAAP 每股收益為 0.97 美元，比去年第四季下降 0.05 美元。年比變化的原因包括 0.13 美元的調整後息稅前利潤負影響、0.08 美元的稅收增加以及 0.03 美元的非控制權益影響。這些減少被我們的股票回購計劃帶來的 0.19 美元收益部分抵消。

Free cash flow, defined as operating cash flow less CapEx, for the quarter equaled $155 million compared to our expectation of about $200 million. The shortfall was due to a combination of a smaller benefit from working capital and higher-than-anticipated cash tax levels. For the year, our free cash flow totaled $756 million, which was the third straight year above $700 million, demonstrating consistency of cash generation performance.

本季的自由現金流（定義為營運現金流減去資本支出）為 1.55 億美元，而我們的預期約為 2 億美元。造成這一缺口的原因是營運資金收益減少和現金稅水準高於預期。今年，我們的自由現金流總額為 7.56 億美元，連續第三年超過 7 億美元，這顯示現金產生績效的一致性。

And now I'll turn to our fourth quarter key financial metrics. Gross margin equaled 23.6%, flat year-to-year as we continued to drive workforce optimization and reduce our real estate footprint in the face of declining revenue.

現在我將談談我們第四季的關鍵財務指標。毛利率為 23.6%，與去年同期持平，因為我們在收入下降的情況下繼續推動勞動力優化並減少房地產足跡。

SG&A was 8.7% of revenue, down 70 basis points year-to-year, largely driven by ongoing spending management and a $10 million nonrecurring insurance reimbursement.

SG&A 佔收入的 8.7%，年減 70 個基點，這主要是由持續的支出管理和 1000 萬美元的非經常性保險報銷推動的。

Depreciation and amortization was flat year-to-year as a percent of revenue, down $17 million, reflecting continued capital discipline.

折舊和攤提佔收入的百分比同比持平，下降了 1700 萬美元，反映出持續的資本紀律。

Other income for the quarter was $39 million, a year-to-year reduction of $48 million, which is a 120 basis point impact to EBIT margin, driven by lower pension income of $26 million and lower gains on asset sales of $19 million.

該季度的其他收入為 3,900 萬美元，年比減少 4,800 萬美元，這對 EBIT 利潤率產生了 120 個基點的影響，原因是退休金收入減少了 2,600 萬美元，資產銷售收益減少了 1,900 萬美元。

Now turning to our segment results. For GBS, organic revenue performance was nearly flat year-to-year with the deceleration largely driven by the ongoing challenging market environment for Analytics & Engineering and Applications. GBS profit margin equaled 13.3%, down 40 basis points year-to-year but up 140 basis points sequentially, primarily driven by a more favorable mix of higher-margin services revenue.

現在轉向我們的部門業績。對 GBS 來說，有機收入表現與去年同期幾乎持平，成長減速主要是由於分析、工程和應用領域持續充滿挑戰的市場環境所致。 GBS 利潤率為 13.3%，年減 40 個基點，但環比上升 140 個基點，這主要是由於高利潤率服務收入的更有利組合的推動。

For GIS, organic revenue declined 9.3%, largely consistent with our performance throughout the year. We have taken a very disciplined financial approach with new deals and renewals, and this has been reflected in our bookings and revenue performance of both Cloud & ITO and Modern Workplace. GIS margins declined 40 basis points year-to-year with operational improvements more than offset by a lower level of pension income.

對於 GIS，有機收入下降了 9.3%，與我們全年的業績基本一致。我們對新交易和續約採取了非常嚴格的財務方法，這已經反映在我們的雲端和 ITO 以及現代工作場所的預訂和收入表現中。 GIS 利潤率年減 40 個基點，營運改善被退休金收入水準下降所抵銷。

Let me now provide some detail on our individual offerings, first in GBS. Both Analytics & Engineering and Applications organic revenue declined 1% year-to-year as performance continues to be impacted by the current challenging market environment. While the revenue declined, the book-to-bill ratios for these 2 businesses were 1.0 or better with strong renewal activity that does not provide incremental short-term revenue but provides longer-term revenue stability.

現在讓我提供有關我們個人產品的一些詳細信息，首先是 GBS。由於業績繼續受到當前充滿挑戰的市場環境的影響，分析與工程和應用程式的有機收入比去年同期下降了 1%。雖然收入下降，但這兩家企業的訂單出貨比為 1.0 或更高，且強勁的續約活動不會帶來短期收入增量，但會提供長期收入穩定性。

Insurance organic revenue increased 1% year-to-year. Embedded in this performance is our insurance software and services business, which represents approximately 3/4 of the total, that continued its strong momentum, up 4.5% in the quarter. Normalizing for a significant large perpetual license sale in the fourth quarter of last year, the insurance software and services business grew approximately 9% year-to-year.

保險有機收入較去年同期成長1%。這一業績的核心是我們的保險軟體和服務業務，約佔總業務的 3/4，該業務繼續保持強勁勢頭，本季成長 4.5%。去年第四季度，保險軟體和服務業務的大幅永久授權銷售正常化，年增約 9%。

The insurance book-to-bill was 0.8x. As a reminder, bookings in this business can vary significantly quarter-to-quarter based on the timing of large renewals. For example, last quarter, we had 2 significant renewals and our book-to-bill was 1.58.

保險訂單出貨比為 0.8 倍。提醒一下，根據大額續訂的時間，此業務的預訂量可能會因季度而異。例如，上個季度，我們有 2 次重大續約，我們的訂單出貨比為 1.58。

Now moving to our GIS segment. Security declined 9% year-over-year on an organic basis with a book-to-bill ratio of 0.96. Cloud infrastructure and IT outsourcing organic revenue declined 7%, an improvement from double-digit declines we saw in the prior 3 quarters due to a significant resale transaction delivered in the quarter. The book-to-bill was 0.75x, a result of the ongoing challenging ITO market and our selective approach to new deals.

現在轉向我們的 GIS 部分。安全性有機較去年同期下降 9%，訂單出貨比為 0.96。由於本季交付了大量轉售交易，雲端基礎設施和 IT 外包有機收入下降了 7%，較前三個季度的兩位數下降有所改善。訂單出貨比為 0.75 倍，這是 ITO 市場持續充滿挑戰以及我們對新交易採取選擇性方法的結果。

Modern Workplace organic revenue declined year-to-year in the mid-teens impacted by resale revenue, which was down 30%. Book-to-bill performance this quarter was a strong 1.29x due to several large renewals.

受轉售收入下降 30% 的影響，Modern Workplace 的有機收入比去年同期下降了約 15%。由於多次大額續訂，本季的訂單出貨比表現強勁，達到 1.29 倍。

Now turning to our financial foundation. We sequentially reduced our total debt levels by $450 million, and for the full year, our total debt levels have been reduced by $300 million.

現在轉向我們的財務基礎。我們隨後將總債務水準減少了 4.5 億美元，全年總債務水準減少了 3 億美元。

Net interest expense for the quarter was $20 million, up $3 million year-to-year, reflecting the higher interest rate environment on our short-term borrowings.

該季度的淨利息支出為 2,000 萬美元，年增 300 萬美元，反映了我們短期借款的較高利率環境。

Restructuring and TSI expense was $21 million, and for the full year, it was $118 million, about half of the level spent in fiscal '23.

重組和 TSI 支出為 2,100 萬美元，全年為 1.18 億美元，約為 23 財年支出水準的一半。

Operating lease payments of $84 million were down $9 million year-to-year due to the management of our real estate footprint.

由於我們對房地產足跡的管理，經營租賃付款為 8,400 萬美元，年減了 900 萬美元。

The fourth quarter capital expenditures were $125 million and lease originations were $21 million. Our finance lease and asset financing payments continue to trend down, and as a percentage of revenue, capital expenditures and lease originations declined to 4.3%, down more than 1 point year-over-year, representing a multiyear low.

第四季資本支出為 1.25 億美元，租賃起始額為 2,100 萬美元。我們的融資租賃和資產融資支出持續呈下降趨勢，資本支出和租賃起源佔收入的百分比下降至4.3%，年減超過1個百分點，創多年低點。

Turning to capital deployment. As I mentioned, in the fourth quarter, we deployed approximately $450 million of cash to reduce our debt levels. We accomplished this by retiring our outstanding balance of commercial paper and continuing to decrease our lease portfolio. We returned $138 million of capital to shareholders, repurchasing 6.2 million shares at a weighted average price per share of $22.30. For the full year, we repurchased over 18% of our shares outstanding at a total cost of $883 million. Since the beginning of the fiscal year '22, we have reduced our share count by more than 30%.

轉向資本配置。正如我所提到的，在第四季度，我們部署了約 4.5 億美元現金來降低債務水準。我們透過收回商業票據的未償餘額並繼續減少租賃組合來實現這一目標。我們向股東返還了 1.38 億美元的資本，以每股 22.30 美元的加權平均價格回購了 620 萬股股票。全年，我們回購了超過 18% 的已發行股票，總成本為 8.83 億美元。自 22 財年開始以來，我們的股份數量減少了 30% 以上。

As we enter a new fiscal year, I would like to provide clarity on our updated financial priorities. Our plan is to deploy our capital to accomplish 2 things: first, given our recent revenue performance, we will execute a restructuring program to address excess capacity, largely concentrated in GIS, and rightsize our infrastructure throughout the company to improve profitability. The second priority is to further reduce debt levels, including significantly minimizing finance lease originations.

當我們進入新的財政年度時，我想澄清我們最新的財務優先事項。我們的計劃是部署我們的資本來完成兩件事：首先，考慮到我們最近的收入表現，我們將執行重組計劃以解決產能過剩問題，主要集中在GIS 領域，並調整整個公司的基礎設施規模以提高盈利能力。第二個優先事項是進一步降低債務水平，包括大幅減少融資租賃的產生。

Now turning to our full year '25 guidance. We expect our total organic revenue to decline 4% to 6%.

現在轉向我們的 25 年全年指導。我們預計我們的有機總收入將下降 4% 至 6%。

In GBS, we expect our full year outlook to be slightly positive, with the first half performance in line with our fourth quarter of fiscal '24 and with a return to growth in the second half of the year.

在GBS方面，我們預期全年前景略為樂觀，上半年業績與24財年第四季一致，下半年將恢復成長。

In GIS, given last year's bookings and the resulting impact to opening backlog, combined with continued expected lower resale revenue and deal selectivity in fiscal '25, we anticipate full year organic revenue to decline in the low double-digit range.

在GIS 領域，考慮到去年的預訂情況以及由此對開業積壓造成的影響，再加上預計轉售收入和25 財年交易選擇性的持續下降，我們預計全年有機收入將在兩位數範圍內下降。

Our guidance for adjusted EBIT margin is 6% to 7%. This guidance primarily reflects the impact from lower year-to-year revenue and investments we're making in the business to drive productivity improvements. Additionally, we will be executing on the previously mentioned restructuring action to improve margins on a sustainable basis going forward, with the impact of the savings largely materializing in late fiscal '25 and into fiscal '26.

我們對調整後息稅前利潤率的指導為 6% 至 7%。該指引主要反映了我們為推動生產力提高而在業務中進行的逐年收入和投資下降的影響。此外，我們將執行前面提到的重組行動，以可持續地提高利潤率，節省的影響將在 25 財年末和 26 財年大部分實現。

As I've mentioned on previous calls, we continue to rationalize our real estate portfolio. These potential sales will provide a cash inflow outside of free cash flow but will have a negative impact on our adjusted EBIT margin. The potential loss on these sales is not included in the guidance as the market remains difficult and the timing is uncertain. And with this expected adjusted EBIT margin levels, our full year non-GAAP diluted EPS guidance is $2.50 to $3 with an assumed non-GAAP effective tax rate of 30%.

正如我在之前的電話會議中提到的，我們繼續合理化我們的房地產投資組合。這些潛在的銷售將提供自由現金流以外的現金流入，但會對我們調整後的息稅前利潤率產生負面影響。由於市場仍然困難且時機不確定，這些銷售的潛在損失並未包含在指導中。根據這一預期的調整後息稅前利潤率水平，我們全年非 GAAP 攤薄後每股收益指引為 2.50 美元至 3 美元，假設非 GAAP 有效稅率為 30%。

Our free cash flow guidance for fiscal '25 is about $400 million. There are 2 main drivers contributing to the lower year-over-year level, and without these changes, free cash flow would be at levels consistent with fiscal '24 performance. As I previously mentioned, we will be reducing our debt levels in fiscal '25, and a component of our debt reduction strategy is significantly reducing finance lease originations, which were $185 million in fiscal '24. This change in funding approach will reduce our overall debt levels but will increase our capital expenditures, impacting free cash flow.

我們對 25 財年的自由現金流指引約為 4 億美元。有兩個主要驅動因素導致年比水準較低，如果沒有這些變化，自由現金流將處於與 24 財年業績一致的水平。正如我之前提到的，我們將在 25 財年降低債務水平，而我們的債務削減策略的一個組成部分是大幅減少融資租賃的發放，該融資租賃在 24 財年為 1.85 億美元。融資方式的這種變化將降低我們的整體債務水平，但會增加我們的資本支出，影響自由現金流。

Also impacting free cash flow will be spending related to the increased level of restructuring, which will be an increase of approximately $250 million year-to-year. Our expectation is that the restructuring savings will put us on a sustainable path of free cash flow generation above fiscal '24 levels in fiscal '26.

與重組水準提高相關的支出也將影響自由現金流，該支出將年增約 2.5 億美元。我們的預期是，重組儲蓄將使我們走上一條可持續的道路，在 26 財年創造高於 24 財年水準的自由現金流。

As a reminder, our Q1 free cash flow is seasonally lowest primarily due to the timing of bonus payouts and certain annual supplier payments. Consistent with prior years, cash flow generation will be strongest in the second half of the year.

提醒一下，我們第一季的自由現金流處於季節性最低，主要是由於獎金支付的時間和某些年度供應商付款。與往年一樣，下半年現金流量將最強勁。

And now our first quarter outlook. In GBS, we anticipate that revenue performance in A&E and Applications will continue to reflect the current challenging market environment. And in GIS, services revenue will decline in the mid- to high single-digit range, with resale taking the GIS decline to double digits. With these factors, we expect total company organic revenue to decline 7% to 8%.

現在是我們第一季的展望。在 GBS 領域，我們預期 A&E 和應用領域的營收表現將繼續反映當前充滿挑戰的市場環境。在 GIS 領域，服務收入將出現中位數到高個位數的下降，轉售使 GIS 的下降幅度達到兩位數。考慮到這些因素，我們預計公司總有機收入將下降 7% 至 8%。

We anticipate adjusted EBIT margins in the range of 5.5% to 6%, a function of the lower revenue and first quarter seasonality, which has consistently impacted our results in prior years.

我們預計調整後的息稅前利潤率將在 5.5% 至 6% 之間，這是由於收入較低和第一季季節性因素導致的，這一直影響著我們前幾年的業績。

And finally, non-GAAP diluted EPS of $0.55 to $0.60.

最後，非 GAAP 攤薄後每股收益為 0.55 美元至 0.60 美元。

With that, let me turn the call back over to Raul for key takeaways.

接下來，讓我將電話轉回給勞爾，以獲得關鍵要點。

Thank you, Rob. There is quite a lot to do to operate at a higher level. That's why I'm so happy with the additions to our executive team in the last 60 days. They are all industry veterans with proven track records. We will define success by continuing to perform better every quarter while we transform as quickly as possible.

謝謝你，羅布。要在更高的水平上運作，還有很多工作要做。這就是為什麼我對過去 60 天內管理團隊的新增人員感到非常高興。他們都是擁有良好業績記錄的行業資深人士。我們將透過每季繼續表現更好、同時盡快轉型來定義成功。

Thank you for attending the call. Operator, we're going to open it up for questions.

感謝您參加電話會議。接線員，我們將打開它來提問。

(Operator Instructions) Your first question comes from the line of Bryan Keane with Deutsche Bank.

（操作員說明）您的第一個問題來自德意志銀行的 Bryan Keane。

Raul, maybe you could just help us understand how your restructuring might be different than many of the CEOs that came before you that had a lot of restructuring as well. It seems like every 5 years or so, a CEO comes in, looks at the business and restructures it. Just trying to get a sense of how maybe your plans might look different than what we've seen over the last few decades at CSC and now DXC.

勞爾，也許你可以幫助我們了解你的重組與你之前的許多也進行了大量重組的執行長有何不同。似乎每隔 5 年左右就會有一位執行長上任，審視業務並進行重組。只是想了解您的計劃可能與我們過去幾十年在 CSC 和現在的 DXC 看到的有所不同。

Yes. Okay, great question. Thank you. I know that, as you've mentioned, in the short history of this public company, there have been previous restructurings. But as someone who just got here and have really spent a lot of time operationally looking at our systems, our processes, our entities, our distribution of head count, it's clear to me that the previous restructurings did not set a real, clean, solid, fully integrated baseline for profitable growth.

是的。好的，很好的問題。謝謝。我知道，正如您所提到的，在這家上市公司的短暫歷史中，之前曾進行過重組。但作為一個剛來到這裡並確實花了很多時間來操作地查看我們的系統、流程、實體、人員分佈的人，我很清楚之前的重組並沒有設定一個真正的、乾淨的、堅實的。 ，完全整合的獲利成長基線。

You can look at that in multiple ways: number of systems still in place that were acquired over time, never integrated, never deduped; number of business processes that got stacked on top of each other; number of legal entities. I think anyone that came in would look at the previous work, and again, I know the history is there so I'm not running away from it, but I can tell you that this is a real reset. It is bottoms up. It is a strong foundation to go from and it is absolutely needed because otherwise, we just continue to carry a really not fully functional organization that can take advantage of the opportunities that we have.

您可以從多種角度來看待這個問題：隨著時間的推移而獲得的、從未整合、從未進行重複資料刪除的仍然存在的系統數量；相互堆疊的業務流程數量；法人實體數量。我想任何進來的人都會看看之前的作品，再說一次，我知道歷史就在那裡，所以我不會逃避它，但我可以告訴你，這是一次真正的重置。它是自下而上的。這是一個堅實的基礎，也是絕對必要的，否則，我們將繼續擁有一個功能不完美的組織，而該組織可以利用我們擁有的機會。

Got it. And then just as a follow-up, any of the restructuring charges, are those through the P&L so they're in the margin targets that we're looking at? Or are those outside those targets?

知道了。然後，作為後續行動，任何重組費用是否透過損益表計入我們正在考慮的利潤目標？或者那些超越了這些目標？

And then secondly to that, just on GBS, a little bit of a recovery, I think you talked about in the second half of the year. What gives you confidence in that GBS recovery for positive organic growth in the second half?

其次，就 GBS 而言，我想您在下半年談到了一點復甦。是什麼讓您對下半年 GBS 復甦並實現積極的自然成長充滿信心？

Bryan, this is Rob Del Bene. Thanks for the question. First on restructuring. Restructuring is not included. Consistent with the approach taken since the beginning of the company, restructuring is not included in the adjusted EBIT margin. It obviously is included in the free cash flow numbers. So that's the answer to your first question.

布萊恩，我是羅布·德爾·貝尼。謝謝你的提問。首先是重組。不包括重組。與公司成立以來所採取的方法一致，重組不包括在調整後的息稅前利潤率。它顯然包含在自由現金流數字中。這就是你第一個問題的答案。

On the GBS first half to second half dynamic, with a difficult marketplace, we do see the first half of the year performance similar to the back half of fiscal '24. We have some encouragement. Our pipelines have been improving, and our conversion rates are consistent. So with that improved pipeline and conversion rates, we see us going from low single-digit negatives to low single-digit positives in the second half of the year.

從 GBS 上半年到下半年的動態來看，由於市場困難，我們確實看到今年上半年的表現與 24 財年下半年相似。我們有一些鼓勵。我們的通路一直在改善，我們的轉換率也始終如一。因此，隨著管道和轉換率的改善，我們看到下半年我們的表現將從低個位數的負面因素轉變為低個位數的正面因素。

And it's all built on, again, new leadership there, new life cycle management in terms of opportunities. So pre-proposal, proposal, pitching smarter, better, faster, and also eliminating, frankly, some self-inflicted delivery issues that we have had and, in some cases, we're still working our way out of. As I've mentioned before, this isn't one lever. This is a lot of little levers.

這一切都建立在新的領導和機會的新生命週期管理的基礎上。因此，提案前、提案、推廣更聰明、更好、更快，坦白說，也消除了我們曾經遇到過的一些自我造成的交付問題，在某些情況下，我們仍在努力解決這些問題。正如我之前提到的，這不是一個槓桿。這是很多小槓桿。

And I think one of the things that has given me additional encouragement that I'm looking at it correctly and the team is looking at it correctly is that, as we've brought on great new experienced executives from great companies that have been succeeding in the marketplace all over the world, they have confirmed that it's a very opportunity-rich environment, meaning we have a lot of things that we can be doing better. And if we do those things better, again, not rocket science, operational excellence, and I'd say, in some cases, just getting to average, that will show up top line and bottom line and conversion and show up in gross margins, net margins, et cetera.

我認為給我額外鼓勵的一件事是，我正確地看待它，團隊也正確地看待它，因為我們從偉大的公司引進了經驗豐富的新高管，這些公司在世界各地的市場上，他們已經確認這是一個機會非常豐富的環境，這意味著我們有很多事情可以做得更好。如果我們再次把這些事情做得更好，而不是火箭科學，卓越運營，我想說，在某些情況下，只是達到平均水平，這將顯示出頂線和底線以及轉換並顯示在毛利率中，淨利潤率等。

So I feel like we've got a way to go to get to a base and then from that base, we're going to continue to grow off of it. But I think we've got the right people, the right structure and now the right go-to-market model and incentives, and I'm encouraged.

所以我覺得我們還有一段路要走才能到達一個基地，然後從這個基地開始，我們將繼續在此基礎上成長。但我認為我們擁有合適的人才、合適的結構，現在還有正確的進入市場模式和激勵措施，這讓我深受鼓舞。

Your next question comes from the line of Tien-Tsin Huang of JPMorgan.

你的下一個問題來自摩根大通的黃天欽。

I'm just curious on the bookings side, how that came in versus plan in a little bit more detail and what we might expect as the fiscal year plays out here in terms of replenish either new logo or renewal.

我只是對預訂方面感到好奇，與計劃相比，它是如何更詳細地進行的，以及我們在本財年在補充新標誌或更新方面可能會發生什麼。

Yes. Tien-Tsin, thanks. So the bookings relative to the last forecast we gave 90 days ago were pretty consistent and actually a little better in GBS. And that was really, really due to renewals in A&E were strong and it's the second quarter in a row they've been strong. And in my remarks, I mentioned that those renewals, they don't translate into revenue growth in the first half of the year, but they do provide a solid foundation for the second half. So we did a little better than anticipated. We did as expected in GIS. And going into fiscal '25, we expect a very similar picture where we have strong renewal activity in both GBS and GIS and then new content and, based on the pipeline, new content in GBS filtering in throughout and improving throughout the year in fiscal '25.

是的。田津，謝謝。因此，與我們 90 天前給出的最後一次預測相比，預訂量相當一致，而且實際上 GBS 的預訂量要好一些。這確實是因為 A&E 的續訂強勁，而且這是連續第二季表現強勁。在我的演講中，我提到這些續約並沒有轉化為上半年的收入成長，但確實為下半年提供了堅實的基礎。所以我們的表現比預期的好一些。我們在 GIS 的表現符合預期。進入25 財年，我們預計會出現非常相似的情況，即我們在GBS 和GIS 方面都有強勁的更新活動，然後是新內容，並且根據管道，GBS 中的新內容將在整個財年中過濾並改進。

Perfect. And then maybe, Raul, just quickly, my quick follow-up, just with the additions to the management team. I know you're bringing some people in from familiar places. Are you done with some of the additions? Do you expect some other turnover or maybe new roles that should expand into the management team? Just curious what your thinking is there.

完美的。然後也許，勞爾，很快，我的快速跟進，只是增加了管理團隊。我知道你從熟悉的地方帶了一些人來。您完成了一些添加嗎？您是否預期管理團隊會出現其他人員變動或新角色？只是好奇你的想法是什麼。

Yes. And look, you've seen some of the releases, right? So we've obviously announced some publicly, and then there are others that we didn't announce but they've joined the team across the organization. I've had the pleasure of working with a lot of great executives over my 25-plus years in technology. And in that journey, we've had the opportunity to work together, and many of the executives that have come here, we've had the opportunity to compete together, work together and win together. So yes, we got a few more that are coming.

是的。看，您已經看過一些版本了，對吧？因此，我們顯然已經公開宣布了一些，還有其他一些我們沒有宣布，但他們已經加入了整個組織的團隊。在我 25 多年的技術生涯中，我有幸與許多優秀的主管一起工作。在那段旅程中，我們有機會一起工作，許多來到這裡的高階主管，我們有機會一起競爭、一起工作、一起獲勝。所以，是的，我們還有更多即將推出。

But in terms of looking at the people that we need to execute, building on top of the team that's here, the great team that's here, and adding some great executives that are fit for the roles where we need an additional horsepower, I feel like I've gotten the team 90-plus percent in place.

但就我們需要執行的人員而言，在現有團隊的基礎上進行建設，在這裡的優秀團隊，並添加一些適合我們需要額外動力的角色的優秀高管，我覺得我已經讓團隊90% 以上就位。

Your next question comes from the line of Bryan Bergin with TD Cowen.

你的下一個問題來自 Bryan Bergin 和 TD Cowen 的對話。

First question just on free cash flow. So understanding you have, I believe, the $250 million restructuring headwind that seems to be the biggest chunk in the year-over-year bridge, but can you talk about otherwise maybe the levers for free cash flow sustainability amid ongoing top line and potentially margin pressure? And can you also talk about maybe the annual outflows associated with capital lease payments going forward, too, after free cash flow?

第一個問題關於自由現金流。因此，我相信，您面臨著2.5 億美元的重組逆風，這似乎是同比橋樑中最大的一塊，但您能否談談在持續的營收和潛在利潤率的情況下自由現金流可持續性的槓桿壓力？能否也談談在自由現金流之後與未來資本租賃付款相關的年度流出？

Yes. So in terms of free cash flow, we start from a base of strength 3 years in a row, over $700 million, $750 million in fiscal '24. And we have that solid base moving into fiscal '25. And as I mentioned, the two impacts to that number are the increase in restructuring of $250 million and then the curtailment or significantly curtailing new lease originations, which does shift the spend over to CapEx, impacting our free cash flow number in the year.

是的。因此，就自由現金流而言，我們從連續 3 年超過 7 億美元的實力基礎開始，24 財年達到 7.5 億美元。我們已經為進入 25 財年奠定了堅實的基礎。正如我所提到的，對該數字的兩個影響是重組增加了 2.5 億美元，然後是削減或大幅削減新租賃，這確實將支出轉移到資本支出，影響了我們今年的自由現金流。

Now we do have operating leverage with working capital. So there is room for improvement in working capital. We're going to be taking advantage of that in fiscal '25 and beyond. And again, the purpose of the restructuring is to shore up EBIT moving forward, '25 into fiscal '26, and curtail that headwind that we faced for the last couple of years. So that's the plan.

現在我們確實擁有營運資金和營運槓桿。因此營運資金還有改善的空間。我們將在 25 財年及以後利用這一點。再說一遍，重組的目的是在「25 財年」到「26 財年」期間提高息稅前利潤，並減少我們在過去幾年中面臨的不利因素。這就是計劃。

In terms of cap lease payments, we're in the low 200s, and that will continue to wind down. In '26, it will go from a $200 million range to a $100 million range and then down from there.

就租金上限而言，我們處於 200 多美元的水平，而且這一數字將繼續下降。 26 年，它將從 2 億美元範圍上升到 1 億美元範圍，然後從那裡下降。

And just to foot-stomp this, the lease originations will go from $185 million in FY '24 to 0 in '25.

為了解決這個問題，租賃起始額將從 24 財年的 1.85 億美元降至 25 財年的 0。

So a very small number.

所以數量非常少。

And that's a $185 million reduction in the free cash flow.

這意味著自由現金流減少了 1.85 億美元。

Yes. Thank you, John.

是的。謝謝你，約翰。

Okay. That's very helpful. Okay. And I guess a follow-up, just as we think about the top line, the '25 guide, as we try to unpack some of the factors you considered here as it relates to kind of revenue retention and whether you're also working to actively prune out any unfavorable basis of business contracts, any pieces of business you're looking at and assessing that's not strategic to the company? Anything that you're working through kind of here to be mindful of as you build the outlook?

好的。這非常有幫助。好的。我猜想是一個後續行動，就像我們思考最重要的一點，即 25 年指南一樣，我們試圖解開您在這裡考慮的一些因素，因為它與收入保留的類型以及您是否也在努力積極消除任何不利的商業合約基礎，以及您正在考慮和評估的對公司不具有戰略意義的任何業務？在建立前景時，您有什麼需要注意的事情嗎？

Yes, especially in ITO and Modern Workplace where, historically, there's been the packaging of less-than-optimal profitable reselling of products, reselling of software. That guidance or that direction changed when I got here, and we are going to have profitable contracts, profitable relationships. To the extent we don't have them right now, as we get into renewals of contracts, we're going to address that and then put them on the right footing. But the mandate is clear now that this isn't growth, growth at all costs, growth at a loss, this is growth with real profitability and a real foundation.

是的，尤其是在 ITO 和現代工作場所，從歷史上看，存在著轉售產品和轉售軟體的利潤不太理想的包裝。當我來到這裡時，這種指導或方向發生了變化，我們將擁有有利可圖的合約、有利可圖的關係。在某種程度上，我們現在還沒有這些，當我們續約時，我們將解決這個問題，然後讓它們站穩腳跟。但現在的任務很明確，這不是成長，不是不惜一切代價的成長，不是虧損的成長，而是有真正獲利能力和真正基礎的成長。

Yes. And Bryan, just piggybacking on that, we've incorporated that selectivity into our guide on revenue, so that's included, along with continued reduction of low-margin resale. All of that is packed into the GIS element of the guide.

是的。布萊恩，在此基礎上，我們已將這種選擇性納入我們的收入指南中，因此將其包括在內，同時持續減少低利潤轉售。所有這些都包含在指南的 GIS 元素中。

Okay. If I missed it, I apologize. Did you quantify that piece, just so we can kind of parse that out?

好的。如果我錯過了，我深表歉意。您是否量化了這一部分，以便我們可以對其進行解析？

Didn't quantify specifically the various elements. But in my opening remarks, I mentioned that we'll be high negative single digits in GIS. And with the resale, it will be negative double digits, low double digits.

沒有具體量化各個元素。但在我的開場白中，我提到 GIS 的負個位數將會很高。隨著轉售，它將是負兩位數，低兩位數。

Your next question comes from the line of Darrin Peller with Wolfe Research.

您的下一個問題來自 Wolfe Research 的 Darrin Peller。

This is Paul Obrecht on for Darrin. Can you just provide some color on what you're seeing in the broader macro environment and client behavior and maybe how that relates to 3 months ago? And as you built your fiscal year '25 outlook, were you assuming any improvement in the broader demand as we go through the year?

我是保羅·奧布雷希特 (Paul Obrecht) 替補達林 (Darrin)。您能否提供一些您在更廣泛的宏觀環境和客戶行為中看到的情況以及這與 3 個月前的關係的一些資訊？在您制定 25 財年展望時，您是否認為這一年更廣泛的需求會有所改善？

Sure. Look, I think there are a couple of factors, right, with companies that are operating at different levels of efficiency. And I think our issue is being more effective across the whole life cycle of capturing business, new business, solutioning it correctly, pricing it correctly, as well as on our existing business, obviously, winning the recompetes and being able to create the right economic model for those recompetes.

當然。我認為，對於以不同效率水準運作的公司來說，有幾個因素。我認為我們的問題是在捕獲業務、新業務、正確解決問題、正確定價以及我們現有業務的整個生命週期中更加有效，顯然，贏得重新競爭並能夠創造正確的經濟那些重新競爭的模型。

We have plenty of opportunity in the universe that we operate in. I think from a macro standpoint, I echo what others have said in the space that some discretionary spending is paused and has lightened up. I do think that, that is less of a headwind for us than optimizing our go-to-market and sales functions and getting those better. We have our destiny in our hands by being better against the opportunities that we get to compete on, and that will be a bigger factor for us in the near term than the general macro environment.

在我們經營的宇宙中，我們有很多機會。我確實認為，與優化我們的上市和銷售職能並使其​​變得更好相比，這對我們來說並不是一個阻力。透過更好地應對競爭機會，我們掌握了自己的命運，這在短期內對我們來說將是比整體宏觀環境更重要的因素。

Got it. That's helpful. And then as a follow-up, you mentioned in Modern Workplace, you could see or you'll reach a point where 75% of the workforce is nonhuman. Can you just touch on the path to get there and what you're doing right now in the business to improve efficiency?

知道了。這很有幫助。作為後續行動，您在《現代工作場所》中提到，您可能會看到或將達到 75% 的勞動力是非人類的程度。您能否簡單介紹一下實現這一目標的途徑以及您目前在業務中正在採取哪些措施來提高效率？

Sure. If you think about a lot of the work there, it's a lot of resolution, small resolution of items across multiple people, humans, devices, countries, companies, et cetera. If you look at the focus of AI, specifically Copilot and the ability for agents to use large language models, small language models, real precise models, to really proactively and interactively answer and deal with questions, that's the shift where we're going to be using AI in a manner where we can handle the workload, same or more, with a greater infusion of technology and not relying on an increase of humans or people for that. As we transition that, you'll go from a ratio of roughly 40% to 70-plus percent and that's the reference that I made there.

當然。如果你考慮那裡的大量工作，你會發現涉及多個人、人類、設備、國家、公司等的項目的大量分辨率、小分辨率。如果你看看人工智慧的焦點，特別是副駕駛，以及智能體使用大語言模型、小語言模型、真正精確模型的能力，真正主動地、互動地回答和處理問題，這就是我們將要發生的轉變使用人工智慧的方式使我們能夠透過更多的技術注入來處理相同或更多的工作量，而不是依賴人類或人員的增加。當我們進行轉變時，比例將從大約 40% 上升到 70% 以上，這就是我在那裡所做的參考。

But that's real. That's happening. It's actionable. We're experimenting with it across multiple accounts. And the other piece of good news is that the speed of compute behind AI is doubling every 6 months. So the speed, accuracy, and multimodal ability for a virtual agent to really be a great partner in delivering these services at a high quality is there today and getting better, and we're going to take full advantage of it.

但這是真的。這就是正在發生的事情。這是可行的。我們正在多個帳戶上進行試驗。另一個好消息是人工智慧背後的運算速度每 6 個月翻一番。因此，虛擬代理的速度、準確性和多模式能力現在已經成為提供高品質服務的優秀合作夥伴，並且會變得更好，我們將充分利用它。

Your next question comes from the line of Jonathan Lee with Guggenheim Securities.

你的下一個問題來自古根漢證券公司的喬納森李（Jonathan Lee）。

I appreciate the level of detail here. You talked about working through some of the resale dynamics to help profitability. Can you help us understand any other levers you have across contract profitability, whether that's pricing or delivery?

我很欣賞這裡的詳細程度。您談到了透過一些轉售動態來提高獲利能力。您能否幫助我們了解您在合約獲利能力方面擁有的任何其他槓桿，無論是定價還是交付？

Yes. So Jonathan, I think there's leverage across the board, in particular, in the ITO business. I'll just take that first. We've been on a march to reduce physical capacity with the revenue reductions we've experienced, and we will continue that this year as well. And the $100 million of restructuring between the $250 million year-to-year growth and the base of $350 million, that $100 million is predominantly on physical capacity. So that's one element that will deliver savings into the future.

是的。所以喬納森，我認為在各個方面都有影響力，特別是在 ITO 業務中。我先拿那個。隨著收入的減少，我們一直在努力減少實體容量，今年也將繼續這樣做。在 2.5 億美元的年成長率和 3.5 億美元的基礎之間進行 1 億美元的重組，這 1 億美元主要用於實體能力。因此，這是未來節省開支的一個因素。

The second element is just efficiency and infrastructure at the account level, and we are going after that with the restructuring funding. So while we're very good at our service delivery levels, we've got high NPS scores, our restructuring is designed to eliminate the overhead within the accounts as opposed to the direct delivery population that we have. And still, we're firmly on that track and that's how we're going to execute the restructuring.

第二個要素是帳戶層面的效率和基礎設施，我們將透過重組資金來追求這一點。因此，雖然我們的服務交付水準非常出色，並且 NPS 得分很高，但我們的重組旨在消除帳戶內的管理費用，而不是我們擁有的直接交付人群的管理費用。儘管如此，我們仍堅定地走在這條軌道上，這就是我們執行重組的方式。

In the GBS business, we have room to improve margins. And specifically, in the Consulting & Engineering business, our margins are below competition, and again, the restructuring is designed to help us narrow that gap to competition in that business unit. That's another lever for us.

在 GBS 業務中，我們還有提高利潤率的空間。具體來說，在顧問與工程業務中，我們的利潤率低於競爭對手，而重組的目的再次是為了幫助我們縮小與該業務部門的競爭差距。這對我們來說是另一個槓桿。

Great. And just as a follow-up, as you think about the realignment of the company on a business unit basis versus geographic prior, can you talk about some of the client receptivity there?

偉大的。作為後續行動，當您考慮公司在業務部門基礎上與地理之前的重組時，您能談談那裡的一些客戶接受度嗎？

Yes. It is really the intersection, right? Because it's the intersection of the talent, the managers of delivery at the geography in tight coordination with the offering. And so what you're getting just from the beginning of the life cycle is better pre-bid solutioning, better solutioning, better deployment once you win. One of the things that companies can trip themselves up on, and we certainly have, is not being timely in the staffing or fully staffing of something that's won. That leads to SLAs. That's completely self-inflicted, 100% avoidable. If you plan better, you execute better.

是的。這真的是十字路口，對嗎？因為它是人才的交集，所以地理上的交付經理與產品緊密協調。因此，您從生命週期一開始就得到的是更好的投標前解決方案、更好的解決方案、一旦獲勝後更好的部署。公司可能會陷入困境的事情之一（我們當然也遇到過）是沒有及時為已贏得的項目配備人員或充分配備人員。這導致了 SLA。這完全是自己造成的，100%可以避免。如果你計劃得更好，你就會執行得更好。

So that's another example of seeing a lot of little things that other organizations can do, and I know we can do better, that can have an impact. And that impact will be every month, every quarter, and we'll see that. So those are just some of the elements that I think our new go-to-market really resonates with, both the local geography, engaging the offering at a global level and ultimately, the most important thing, which is the customer. And in my several dozen conversations in the last 150 days, and talking through why we think this is a better way of serving our customers, it's been very receptive and very engaging with our customers.

這是另一個例子，看到其他組織可以做很多小事情，我知道我們可以做得更好，這可以產生影響。這種影響將是每個月、每季，我們將會看到這一點。因此，這些只是我認為我們新的進入市場真正引起共鳴的一些元素，包括當地地理位置、在全球範圍內提供產品，以及最終最重要的事情，那就是客戶。在過去 150 天的數十次對話中，以及為什麼我們認為這是為客戶提供更好的服務方式時，我們發現它非常容易接受，並且與我們的客戶非常互動。

Your next question comes from the line of Spencer Anson with Susquehanna.

您的下一個問題來自 Spencer Anson 與薩斯奎哈納 (Susquehanna) 的對話。

Raul, you had some relationship callouts on the insurance business. Can you just speak to any broader strategic or even tactical opportunities you see there with the insurance business?

勞爾，您對保險業務有一些關係標註。您能否談談您在保險業務中看到的更廣泛的策略甚至戰術機會？

Great. Yes. As I looked at every business unit, I think very early on, it became clear to me that we have an outsized opportunity in terms of a return on effort with our insurance business unit. With that opportunity in hand, we're exploring a small select and experienced group of partners that could help us accelerate growth with a good SaaS and reoccurring services mix while maintaining control of that business unit. So we're in that process right now. It's a great foundation. It's a great set of customers, a great history with those customers, and really a critical partnership across the world in every aspect of supporting the different product lines that our customers bring to the marketplace.

偉大的。是的。當我審視每個業務部門時，我想很早就開始意識到，我們的保險業務部門在努力回報方面擁有巨大的機會。有了這個機會，我們正在探索一小群經驗豐富的合作夥伴，他們可以幫助我們透過良好的 SaaS 和重複服務組合加速成長，同時保持對該業務部門的控制。所以我們現在正處於這個過程中。這是一個很好的基礎。它有一群很棒的客戶，與這些客戶有著悠久的歷史，並且在支持我們的客戶推向市場的不同產品線的各個方面都是全球範圍內真正重要的合作夥伴關係。

Your next question comes from the line of James Faucette with Morgan Stanley.

您的下一個問題來自摩根士丹利的 James Faucette。

I wanted to ask about go-to-market and sales process. I know, Raul, in past conversations, you talked a lot about improving and tightening up the message to customers so that they understand the value that DXC can deliver, et cetera. And it sounds like with some of the changes that you've made, that the pipeline is expanding but conversion rates are pretty stable. And it sounds like that's kind of the assumption for right now. But like how should we think about the process and the time to start to even improve conversion rates and how that may be helpful to getting the business back to growth?

我想問一下上市和銷售流程。我知道，Raul，在過去的談話中，您談到了很多關於改進和加強向客戶傳達的訊息，以便他們了解 DXC 可以提供的價值等等。聽起來你所做的一些改變，管道正在擴大，但轉換率相當穩定。聽起來這就是目前的假設。但是，我們應該如何考慮開始提高轉換率的流程和時間，以及這如何有助於業務恢復成長？

Yes. I think it's a function of the fundamentals, right? The fundamentals that we're operating under in ITO and Modern Workplace, the new leadership and the focus on key vertical solutions, replicability in Consulting and Engineering Services. And also in talking to customers, if it's an ITO customer or a Modern Workplace, I always come prepared to discuss something relevant in another business unit that they may or may not be aware of.

是的。我認為這是基本面的函數，對吧？我們在 ITO 和現代工作場所中運作的基本原則、新的領導層以及對關鍵垂直解決方案的關注、諮詢和工程服務的可複製性。而且在與客戶交談時，如果是 ITO 客戶或現代工作場所，我總是準備好討論他們可能知道或不知道的另一個業務部門的相關內容。

And frankly, it's a good surprise, but I'm surprised that many of our existing customers where we've got tens, in some cases, hundreds of millions of business in one division, do not know and do not appreciate the talent, the experience that another division has. So just the more effective cross-pollination, cross-sale in existing accounts is something that I see as an opportunity, and it's relatively low-hanging because, again, in my several dozen meetings, I've always tried to say, hey, as you're thinking about this, did you know we did this? And most of the time, the answer is, "Oh no, I didn't know that. Please, let's follow up."

坦白說，這是一個很好的驚喜，但令我驚訝的是，我們許多現有的客戶不知道也不欣賞我們的人才、另一個部門擁有的經驗。因此，在現有帳戶中進行更有效的交叉銷售，我認為這是一個機會，而且它相對容易實現，因為在我的幾十次會議中，我總是試圖說，嘿，當你思考這個問題時，你知道我們這樣做了嗎？大多數時候，答案是：“哦，不，我不知道。請讓我們跟進一下。”

So if you scale that and then operationalize that, we're going to be able to get incremental demand from our existing base because in many cases, we've got a great beachhead, a great history and a great relationship with one offering and a customer but that should be a gateway, an effective gateway, a fast gateway to compete with the other offerings. And that mechanism, that orchestration, that collaboration, that packaging up of stories, as I've mentioned before, all of that is happening as we speak. And frankly, it wasn't happening at a good level before.

因此，如果你擴大規模，然後將其付諸實施，我們將能夠從現有基地獲得增量需求，因為在許多情況下，我們擁有一個偉大的灘頭陣地、悠久的歷史以及與一種產品和一種產品的良好關係。正如我之前提到的，那種機制、那種編排、那種協作、那種故事的包裝，所有這一切都在我們說話的時候發生。坦白說，以前的情況並沒有達到很好的水平。

And it sounds like then for the most part, I mean, you've talked about some incremental partnerships, for example, on the insurance side. But it sounds like you feel like you have all the, or at least a majority of assets, to be able to execute and deliver that cross-sell. Is that fair? Or are there other things that you think you're going to need to add into the mix?

我的意思是，聽起來在很大程度上，您已經談到了一些增量合作夥伴關係，例如在保險方面。但聽起來你覺得你擁有全部或至少大部分資產來執行和交付交叉銷售。這樣公平嗎？或者您認為還需要添加其他內容嗎？

No. We have what we need to compete. We have what we need to compete profitably and grow. We have to get some internal systems aligned. We've got, as I mentioned earlier, dedupe, streamline and do some work that should have been done before that wasn't, but we're going to get it done with speed. And we've got to perform every day, every week, every quarter, while we transform and transformation is the restructuring, and we've got to do both quickly.

不，我們有競爭所需的東西。我們擁有獲利競爭和發展所需的一切。我們必須調整一些內部系統。正如我之前提到的，我們已經進行了重複資料刪除、簡化工作，並做了一些本來應該做但沒有做的工作，但我們將快速完成它。我們必須每天、每週、每季都在進行轉型，而轉型就是重組，而且我們必須快速完成這兩件事。

Your next question comes from the line of Bradley Clark with BMO Capital Markets.

您的下一個問題來自 BMO 資本市場的 Bradley Clark。

This is Brad on for Keith Bachman. I want to ask about your thoughts on GIS and market growth over time. You've alluded to sort of participating in this broader GIS market growth rate, implying perhaps low single-digit decline over time. Is that still how you're thinking about potential growth of both the market and/or GIS longer term given the changes you'll be making to the business?

這是布拉德（Brad）為基思·巴赫曼（Keith Bachman）發言。我想問一下您對 GIS 和市場隨時間成長的看法。您提到了參與更廣泛的 GIS 市場成長率，這意味著隨著時間的推移，可能會有較低的個位數下降。考慮到您將對業務做出的改變，您仍然是這樣考慮市場和/或 GIS 長期潛在成長的嗎？

Yes. Bradley, I think that's about right. We have a very realistic view of the market. And our goal is, after rationalizing the portfolio and focusing on exiting unprofitable contracts and being selective, to get to market growth rates, which we see in the low negative single-digit range. So that's where we're pointing the business in that direction.

是的。布拉德利，我認為這是正確的。我們對市場有非常現實的看法。我們的目標是，在合理化投資組合併專注於退出無利可圖的合約並選擇性地進行之後，實現市場成長率，我們認為市場成長率處於較低的負個位數範圍內。這就是我們將業務引向這個方向的地方。

And just to be clear, we're operating at a worse level than that. So the first goal is to get to "normal" or more baseline with other competitors. And once we get there, then obviously the next step is just to find another target and try to meet and beat it. But in the near term, it is to get in line with our competitors with regards to our growth rate, where it is today and where it should be as a comp.

需要明確的是，我們的營運水準比這更糟。因此，第一個目標是與其他競爭對手達到「正常」或更高的基準。一旦我們到達那裡，顯然下一步就是尋找另一個目標並嘗試滿足並擊敗它。但在短期內，我們的目標是在成長率、目前的成長率以及作為一個公司應該達到的成長率方面與我們的競爭對手保持一致。

This concludes the question-and-answer session. I'll turn the call to Raul Fernandez for closing remarks.

問答環節到此結束。我將把電話轉給勞爾·費爾南德斯，讓其致閉幕詞。

Thank you very much for joining us. I appreciate all of the employees that come together every day to deliver great services for our customers and value all the investors. I definitely also appreciate the sense of frustration and urgency to get things done, and that is what I'm 100% focused on. So thank you very much for attending today.

非常感謝您加入我們。我感謝每天聚集在一起為我們的客戶提供優質服務並重視所有投資者的所有員工。我當然也很欣賞完成任務時的挫折感和緊迫感，這就是我 100% 專注的事情。非常感謝您今天出席。

This concludes today's conference call. Thank you for joining. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的加入。現在您可以斷開線路。