全錄公司 (XRX) 2023 Q2 法說會逐字稿

Welcome to the Xerox Holdings Corporation's Second Quarter 2023 Earnings Release Conference Call. (Operator Instructions) At this time, I'd like to turn the meeting over to Mr. David Beckel, Vice President and Head of Investor Relations. Sir, the floor is yours.

歡迎參加施樂控股公司 2023 年第二季度收益發布電話會議。 （操作員指示） 現在，我想將會議交給副總裁兼投資者關係主管 David Beckel 先生。先生，地板是你的了。

Good morning, everyone. I'm David Beckel, Vice President of Investor Relations at Xerox Holdings Corp. Welcome to the Xerox Holdings Corporation Second Quarter 2023 Earnings Release Conference Call, hosted by Steve Bandrowczak, Chief Executive Officer. He is joined by Xavier Heiss, Executive Vice President and Chief Financial Officer. At the request of Xerox Holdings Corporation, today's conference call is being recorded. Other recording and/or rebroadcasting of this call are prohibited without the expressed permission of Xerox.

大家，早安。我是施樂控股公司投資者關係副總裁大衛·貝克爾。歡迎參加由首席執行官史蒂夫·班德羅扎克 (Steve Bandrowczak) 主持的施樂控股公司 2023 年第二季度收益發布電話會議。執行副總裁兼首席財務官澤維爾·海斯 (Xavier Heiss) 也加入了他的行列。應施樂控股公司的要求，今天的電話會議正在錄音。未經施樂明確許可，禁止對本次通話進行其他錄音和/或轉播。

During this call, Xerox executives will refer to slides that are available on the web at www.xerox.com/investor and will make comments that contain forward-looking statements, which, by their nature, address matters that are in the future and are uncertain. Actual future financial results may be materially different than those expressed herein. This time, I'd like to turn the meeting over to Mr. Bandrowczak.

在本次電話會議期間，施樂高管將參考 www.xerox.com/investor 網站上提供的幻燈片，並將發表包含前瞻性陳述的評論，這些前瞻性陳述本質上解決的是未來的問題，並且是未來的事情。不確定。未來的實際財務結果可能與本文所述的結果存在重大差異。這次，我想把會議交給 Bandrowczak 先生。

Good morning, and thank you for joining our Q2 2023 earnings call. I am pleased to report another quarter of year-over-year growth in revenue, profits, profit margins and cash flow. Consistent with recent quarters, these positive results reflect our team's balanced execution amid a dynamic macroeconomic backdrop.

早上好，感謝您參加我們的 2023 年第二季度財報電話會議。我很高興地報告收入、利潤、利潤率和現金流又同比增長一個季度。與最近幾個季度一致，這些積極的業績反映了我們團隊在動態宏觀經濟背景下的平衡執行力。

Summarizing results for the quarter. Revenue of $1.75 billion grew 0.5% in constant currency and 0.4% in actual currency. Adjusted EPS was $0.44, $0.31 higher year-over-year. Free cash flow was $88 million compared to negative $98 million in the prior year quarter and adjusted operating margin of 6.1% was higher year-over-year by 410 basis points.

總結本季度的結果。收入為 17.5 億美元，按固定匯率計算增長 0.5%，按實際貨幣計算增長 0.4%。調整後每股收益為 0.44 美元，同比增加 0.31 美元。自由現金流為 8800 萬美元，而去年同期為負 9800 萬美元，調整後營業利潤率為 6.1%，同比高出 410 個基點。

This quarter and throughout this past year, demand for our products and services has remained resilient, particularly for our value-added print and digital services and among our mid-market clients. Our ability to consistently deliver growth in revenue, profits and cash flow through a challenging operating environment is the result of an intense focus on 3 strategic priorities: client success, profitability and shareholder returns.

本季度和去年全年，對我們產品和服務的需求保持彈性，特別是對我們的增值印刷和數字服務以及我們的中端市場客戶。我們能夠在充滿挑戰的運營環境中持續實現收入、利潤和現金流的增長，這是我們高度關註三個戰略重點的結果：客戶成功、盈利能力和股東回報。

A benefit of renewed focus on client success beyond the positive impact on revenue and profits as an employee base that genuinely seeks to empower clients and partners with essential products and services for today's workforce. At Xerox, we see the evolving hybrid workplace as an opportunity to improve clients' productivity and employee satisfaction levels with solutions such as secure cloud print for a distributed workforce, automated document and information workflows and streamlined multichannel customer communications to name a few.

重新關注客戶成功的好處不僅僅是對收入和利潤的積極影響，作為真正尋求為客戶和合作夥伴提供當今勞動力基本產品和服務的員工基礎。在施樂，我們將不斷發展的混合工作場所視為提高客戶生產力和員工滿意度的機會，可以通過分佈式員工的安全雲打印、自動化文檔和信息工作流程以及簡化的多渠道客戶通信等解決方案來提高客戶的生產力和員工滿意度。

A thriving hybrid workplace requires advanced technology solutions from trusted technology providers like Xerox. This quarter, Xerox was recognized by Quocirca as a leader in cloud print services positioned as a leader for both strategic vision and depth of service. We also advanced our leadership position in Quocirca's assessment of leaders in the print security market, an important distinction as clients place increasing importance on data security.

蓬勃發展的混合工作場所需要來自施樂等值得信賴的技術提供商的先進技術解決方案。本季度，施樂被 Quocirca 評為雲打印服務領域的領導者，定位為戰略願景和服務深度的領導者。我們還在 Quocirca 對打印安全市場領導者的評估中提升了我們的領導地位，隨著客戶對數據安全的重視程度越來越高，這是一個重要的區別。

Xerox's leading technology and our ability to deliver solutions in and around multifunctional devices help win new business with existing clients and win new clients. This quarter, we won a renewal of a leading health care service company, increasing annual contract value by close to 40%. Through our understanding of this client's needs and our broader health care vertical expertise, we were able to design an integrated customer engagement solution that improves and automates patient communications processes.

施樂的領先技術以及我們在多功能設備及其周圍提供解決方案的能力有助於贏得現有客戶的新業務並贏得新客戶。本季度，我們贏得了一家領先的醫療保健服務公司的續約，年度合同價值增加了近 40%。通過我們對客戶需求的了解和更廣泛的醫療保健垂直專業知識，我們能夠設計一個集成的客戶參與解決方案，以改進和自動化患者溝通流程。

We also won a new business at a global chemical company displacing a large competitor in the process by offering an advanced print management solution that will improve print compliance and security while reducing system-wide print costs by 15% to 20%. An important enabler of client success is a deeper understanding of Xerox' value proposition among clients and partners.

我們還贏得了一家全球化學公司的新業務，通過提供先進的打印管理解決方案取代了大型競爭對手，該解決方案將提高打印合規性和安全性，同時將系統範圍的打印成本降低 15% 至 20%。客戶成功的一個重要推動因素是客戶和合作夥伴對施樂價值主張的更深入理解。

In Q2, we launched a new integrated brand and demand generation campaign we make work, work. This is the most significant marketing campaign the company has launched in many years, and is meant to drive awareness of Xerox's digitization and workflow solutions that solve clients' pain points in a dynamic hybrid workplace.

在第二季度，我們推出了一項新的綜合品牌和需求生成活動，我們讓工作變得有效。這是該公司多年來發起的最重要的營銷活動，旨在提高人們對施樂數字化和工作流程解決方案的認識，這些解決方案可以解決客戶在動態混合工作場所中的痛點。

This quarter, we also held our first Global Partner Summit since the pandemic, posting close to 400 channel partners. The event showcased Xerox's commitment to its partner ecosystem and demonstrated how Xerox can grow with our partners to provide secure, sustainable and cloud-ready solutions built for the new era of AI and digital transformation.

本季度，我們還舉辦了疫情以來的首次全球合作夥伴峰會，發布了近400家渠道合作夥伴。此次活動展示了施樂對其合作夥伴生態系統的承諾，並展示了施樂如何與我們的合作夥伴一起成長，為人工智能和數字化轉型的新時代提供安全、可持續和雲就緒的解決方案。

It is clear our value proposition is resonating with clients. In the past 6 months, we experienced a meaningful improvement in services signings momentum. Year-to-date, signings are up double digit in constant currency and revenue retention range remains solid.

很明顯，我們的價值主張引起了客戶的共鳴。在過去 6 個月中，我們的服務簽約勢頭顯著改善。今年迄今為止，按固定匯率計算，簽約數量增長了兩位數，並且收入保留範圍仍然穩固。

Further, a greater appreciation of our workflow solution is helping drive equipment market share. In Q1, the latest quarter of market share data availability, Xerox gained 2 points of global market share in the markets in which we compete with strong performance in A3 and production.

此外，對我們的工作流程解決方案的更大讚賞有助於提高設備市場份額。在第一季度，即最新季度的市場份額數據中，施樂在 A3 和生產方面的強勁表現在我們競爭的市場中獲得了 2 個百分點的全球市場份額。

Moving to profitability. In Q2, we grew our profit margin year-over-year for the third consecutive quarter. This improvement in margin reflects specific actions taken to drive profitable revenue growth, optimize our operations and offset product cost inflation with price increases. We continue to look for ways to streamline and focus our operations.

轉向盈利。第二季度，我們的利潤率連續第三個季度同比增長。利潤率的提高反映了為推動盈利性收入增長、優化運營並通過價格上漲抵消產品成本通脹而採取的具體行動。我們繼續尋找簡化和集中運營的方法。

We recently sold Xerox Research Center of Canada, or XRCC, to Myant Capital Partners, a leading textile computing company with a shared mission of advancing material-based innovation. As with PARC, this transaction provides Xerox with greater focus and financial flexibility to pursue growth opportunities adjacent to our core operations.

我們最近將加拿大施樂研究中心 (XRCC) 出售給了 Myant Capital Partners，這是一家領先的紡織計算公司，其共同使命是推進基於材料的創新。與帕洛阿爾托研究中心一樣，這項交易為施樂提供了更大的重點和財務靈活性，以尋求與我們的核心業務相鄰的增長機會。

Improvements in profitability and cash flow, of course, accrue directly to shareholder value. In the current market environment, we believe the most prudent use of cash has been the reduction of our debt balance. And in the second quarter, we reduced our debt balance again.

當然，盈利能力和現金流的改善會直接增加股東價值。在當前的市場環境下，我們認為最審慎的現金使用方式是減少債務餘額。在第二季度，我們再次減少了債務餘額。

Year-to-date, we have lowered total debt outstanding by around $600 million. Our shareholder return policy remains the return of at least 50% of free cash flow back to our shareholders. We will provide more direction on how we plan to deploy free cash flow as cash flow is generated throughout the year.

今年迄今為止，我們已將未償債務總額減少了約 6 億美元。我們的股東回報政策仍然是將至少 50% 的自由現金流返還給股東。隨著現金流全年產生，我們將就計劃如何部署自由現金流提供更多指導。

Before I turn the call over to Xavier, I'd like to reflect on some of the actions Xerox has taken to position the company for long-term profitability and sustainable growth. In the past year, the company has experienced significant change, not all of which may be apparent to investors. Through a calculated set of actions taken, we have bolstered our operating and financial discipline and attuned our business model to a market that has been permanently altered by changes in workplace behavior post-pandemic. In doing so, I strongly believe we have the operational and financial foundation from which we can sustainably grow our print, digital and IT services revenue.

在將電話轉給澤維爾之前，我想回顧一下施樂為實現公司長期盈利和可持續增長而採取的一些行動。在過去的一年裡，該公司經歷了重大變化，但並非所有這些變化對投資者來說都是顯而易見的。通過採取一系列經過深思熟慮的行動，我們加強了運營和財務紀律，並使我們的業務模式適應了因疫情后工作場所行為變化而永久改變的市場。通過這樣做，我堅信我們擁有運營和財務基礎，可以持續增長我們的印刷、數字和 IT 服務收入。

Starting with operating discipline, the rigor and operating system instilled by Project Own It provides the key building blocks from which this foundation could be built. Learnings from that program have now been institutionalized at Xerox, including the use of advanced technologies such as RPA, augmented reality and AI to drive continuous operating efficiency and data-driven decision-making.

從操作紀律開始，Project Own It 灌輸的嚴格性和操作系統提供了構建這一基礎的關鍵構建塊。該計劃的經驗教訓現已在施樂制度化，包括使用 RPA、增強現實和人工智能等先進技術來提高持續運營效率和數據驅動的決策。

Internally, we use more than 600 bots to conduct 7 million transactions per quarter. These bots reduced resources required to process manual and repetitive tasks and improve client response times. In our service delivery function, we use augmented reality and AI to improve remote solve rates, infield decision-making and service delivery profitability. And when CareAR and AI are incorporated into our service offerings, we see meaningful improvement in client satisfaction. One of the most significant decisions I have made in my time as CEO was the appointment of John Bruno as COO. John has a strong track record of leading transformational and strategic change across a range of industries. After joining the company in November, he moved quickly to redesign our strategy and further solidify our operating model, establish a number of new operating committees tasked with making the complex and difficult decisions required to drive balanced execution and reposition Xerox for long-term success.

在內部，我們每個季度使用 600 多個機器人進行 700 萬筆交易。這些機器人減少了處理手動和重複性任務所需的資源，並縮短了客戶響應時間。在我們的服務交付功能中，我們使用增強現實和人工智能來提高遠程解決率、內場決策和服務交付盈利能力。當 CareAR 和人工智能融入我們的服務產品時，我們看到客戶滿意度有了顯著的提高。我擔任首席執行官期間做出的最重要的決定之一是任命約翰·布魯諾為首席運營官。約翰在領導多個行業的轉型和戰略變革方面擁有良好的記錄。 11 月加入公司後，他迅速採取行動，重新設計我們的戰略，進一步鞏固我們的運營模式，建立了多個新的運營委員會，負責制定推動平衡執行和重新定位施樂以實現長期成功所需的複雜而困難的決策。

When transforming a company in challenging operating environment, focus is critical. That understanding led to a number of transactions, including the exit of our Eloque joint venture, the spin-out of Novity and Mojave, the donation of PARC to SRI International, and more recently, the sale of XRCC to Myant. These transactions freed up the financial resources and managerial capacity needed to direct our efforts more concertedly towards advancements in workplace technology solutions while allowing each of the respective teams to align with organizations that will give them the capacity and resources needed to stay focused on their areas of innovation.

當一家公司在充滿挑戰的運營環境中進行轉型時，專注至關重要。這種理解導致了一系列交易，包括退出我們的 Eloque 合資企業、分拆 Novity 和 Mojave、將 PARC 捐贈給 SRI International，以及最近將 XRCC 出售給 Myant。這些交易釋放了我們所需的財務資源和管理能力，使我們能夠更加協調地推動工作場所技術解決方案的進步，同時允許每個團隊與組織保持一致，從而為他們提供專注於各自領域所需的能力和資源。創新。

Last but not least, investments in our people. As we place more importance on client centricity and client success we need to do more to recognize and enable our employees' success. Accordingly, in the past year, we reinstituted a number of compensation and career development programs that were placed on hold during the pandemic, including the VISTA program, which provides learning and advancement opportunities for some of our most promising up-and-coming talent.

最後但並非最不重要的一點是對我們員工的投資。隨著我們更加重視以客戶為中心和客戶的成功，我們需要採取更多措施來認可並幫助我們的員工取得成功。因此，在過去的一年裡，我們重新啟動了一些在大流行期間被擱置的薪酬和職業發展計劃，其中包括 VISTA 計劃，該計劃為我們一些最有前途的後起之秀提供學習和晉昇機會。

Financial discipline is equally important in providing stable base for growth. In the past year, we have taken a number of steps to improve profitability, financial flexibility and balance sheet strength. Following the pandemic and through recent operating challenges, we have been laser-focused on profit margin.

財務紀律對於提供穩定的增長基礎同樣重要。去年，我們採取了一系列措施來提高盈利能力、財務靈活性和資產負債表實力。疫情發生後，並經歷了最近的運營挑戰，我們一直高度關注利潤率。

Strategic actions targeted at pricing and product mix have improved base level profits and we plan to further bolster profitability through changes in compensation practices that emphasizes transaction and deal margins thus allowing our sales team to focus their attention on delivering value for clients rather than compete for commoditized business.

針對定價和產品組合的戰略行動提高了基本利潤，我們計劃通過改變強調交易和交易利潤的薪酬實踐來進一步提高盈利能力，從而使我們的銷售團隊能夠將注意力集中在為客戶提供價值上，而不是爭奪商品化商業。

Through the PARC donation, we fundamentally changed our approach to research and development, lowering our R&D cost base while maintaining access to world-class research.

通過 PARC 的捐贈，我們從根本上改變了我們的研發方法，降低了我們的研發成本基礎，同時保持了獲得世界一流研究的機會。

The technology exploration and innovation program signed with SRI and PARC provides an on-demand access to scientists, engineers and researchers that will enable new technologies that are more closely aligned with our print, digital and IT services focus.

與 SRI 和 PARC 簽署的技術探索和創新計劃為科學家、工程師和研究人員提供了按需訪問的機會，這將使新技術更符合我們的印刷、數字和 IT 服務重點。

The receivable funding agreement we signed with a subsidiary of HPS Investment Partners last December significantly improved our free cash flow generation and lowered FITTLE's reliance on Xerox's balance sheet to provide funding for lease originations. Accordingly, we have lowered our debt balance by around $760 million over the past 12 months while improving our financial outlook, providing incremental capacity to fund future growth opportunities.

去年 12 月，我們與 HPS Investment Partners 的子公司簽署的應收賬款融資協議顯著改善了我們的自由現金流生成，並降低了 FITTLE 對施樂資產負債表為租賃發起提供資金的依賴。因此，在過去 12 個月裡，我們的債務餘額減少了約 7.6 億美元，同時改善了我們的財務前景，為未來的增長機會提供了增量資金。

It has been a challenging year for sure, but I am more optimistic about Xerox future and growth opportunities that at any point in the past 5 years. In the past year, I've spent a significant portion of my time meeting directly with some of our most important clients and partners. From those conversations, it is clear clients trust Xerox and look to us to help them solve their most pressing workplace challenges.

這無疑是充滿挑戰的一年，但我對施樂的未來和增長機會比過去五年中的任何時候都更加樂觀。在過去的一年裡，我花了很大一部分時間直接與我們一些最重要的客戶和合作夥伴會面。從這些對話中可以明顯看出，客戶信任施樂，並希望我們幫助他們解決最緊迫的工作場所挑戰。

Recent discussions have shifted to emerging technologies such as generative AI that will further stress the need for secure workplace solution like ours that help optimize company data and workflows. With clients trust and an institutional knowledge of our clients' businesses and industries, we have a clear path to win. We aim to expand existing client share of wallet and win new client business by delivering advanced print, digital and IT solutions.

最近的討論已轉向生成式人工智能等新興技術，這將進一步強調對像我們這樣有助於優化公司數據和工作流程的安全工作場所解決方案的需求。憑藉客戶的信任以及對客戶業務和行業的機構了解，我們有一條清晰的獲勝之路。我們的目標是通過提供先進的印刷、數字和 IT 解決方案來擴大現有客戶的錢包份額並贏得新客戶業務。

Moving forward, [investors] should expect us to continue evolving and reinventing our business as we shift our mix of revenue towards services that addresses a more complex hybrid work environment. Success along this path will be driven by a service-led software-enabled approach to improving client business outcomes and our brand strategy more closely aligned with repositioned Xerox.

展望未來，隨著我們將收入組合轉向解決更複雜的混合工作環境的服務，[投資者]應該期望我們繼續發展和重塑我們的業務。這條道路上的成功將由以服務為主導的軟件支持的方法來推動，以改善客戶的業務成果，以及我們的品牌戰略與重新定位的施樂更加緊密地結合起來。

To recap, it is the early days of a reinvention of our company, but progress is already apparent. Balanced execution against our strategic priorities is driving momentum in service signings and operating efficiencies, giving us the confidence to increase our profitability and cash flow outlook for the year. I now hand it over to Xavier.

回顧一下，現在是我們公司重塑的早期階段，但進展已經很明顯。針對我們的戰略重點的平衡執行正在推動服務簽約和運營效率的增長，使我們有信心提高今年的盈利能力和現金流前景。我現在把它交給澤維爾。

Thank you, Steve, and good morning, everyone. As Steve mentioned, we delivered another quarter of growth in revenue and profits, driven by resilient demand for our equipment and services, normalizing supply chain conditions on benefits from price increases and ongoing cost efficiencies efforts.

謝謝你，史蒂夫，大家早上好。正如史蒂夫提到的，我們的收入和利潤又實現了一個季度的增長，這得益於對我們的設備和服務的彈性需求，受益於價格上漲和持續的成本效率努力使供應鏈條件正常化。

In Q2, revenue was slightly higher year-over-year in actual and constant currency. Growth was driven by equipment sales, once again reflecting a stable demand environment, improved product supply and favorable mix. Growth from equipment sales was offset by a decline in post sales revenue, which was mainly driven by noncontractual items.

第二季度，以實際貨幣和固定匯率計算的收入同比略有增長。增長由設備銷售推動，再次反映出穩定的需求環境、改善的產品供應和有利的結構。設備銷售的增長被售後收入的下降所抵消，售後收入的下降主要是由非合同項目推動的。

Turning to profitability. We delivered a third consecutive quarter of year-over-year improvement in growth on operating profit margins due to higher equipment sales and favorable equipment mix, price increases enacted in prior periods, lower logistic cost and ongoing cost reduction efforts.

轉向盈利能力。由於設備銷量增加和有利的設備組合、前期價格上漲、物流成本降低以及持續的成本削減努力，我們的營業利潤率連續第三個季度實現同比增長。

Gross margin improved 210 basis points over the prior year quarter, mainly driven by improved product mix, lower supply chain-related costs, specifically container transportation costs and benefit associated with recent price and cost efficiency actions. These benefits were partially offset by unfavorable currency effect and around 50 basis points of impact from lower Fuji royalties.

毛利率比去年同期提高了 210 個基點，主要是由於產品組合的改善、供應鏈相關成本的降低，特別是集裝箱運輸成本以及與近期價格和成本效率行動相關的收益。這些收益被不利的貨幣效應和富士特許權使用費降低約 50 個基點的影響部分抵消。

Q1 2023 was the last quarter with recognized revenue from Fuji royalties. Adjusted operating margin of 6.1% increased 410 basis points year-over-year driven by 450 basis points of improvement from ongoing operating efficiencies and pricing actions and 300 basis points from supply chain-related improvement, including a more favorable product mix. Partially offsetting these benefits were unfavorable effect from currency, lower full year royalty income and higher year-over-year bad debt on compensation expenses.

2023 年第一季度是富士特許權使用費確認收入的最後一個季度。調整後營業利潤率為 6.1%，同比增長 410 個基點，主要得益於持續運營效率和定價行動提高 450 個基點，以及供應鏈相關改進（包括更有利的產品組合）提高 300 個基點。貨幣的不利影響、全年特許權使用費收入下降以及補償費用方面的壞賬同比增加，部分抵消了這些好處。

Adjusted other expenses net were $9 million higher year-over-year due to a $16 million benefit associated with the defined contribution pension plan refund in the prior year quarter partially offset by lower interest expense. Adjusted tax rate was 20% compared to 18.5% in the same quarter last year.

調整後的其他費用淨額同比增加 900 萬美元，原因是上一季度固定繳款養老金計劃退款相關的 1,600 萬美元福利被較低的利息費用部分抵消。調整後稅率為20%，而去年同期為18.5%。

Adjusted EPS of $0.44 in the second quarter was $0.31 higher than the prior year, driven by higher adjusted operating income, partially offset by a pension benefit in Q2 2022 on a slightly higher tax rate. GAAP loss per share of $0.41 or $0.36 higher than the prior year due mainly to a $132 million charge associated with the donation of PARC on higher restructuring on non-service retirement-related costs.

第二季度調整後每股收益為 0.44 美元，比上年同期高出 0.31 美元，這是由於調整後營業收入增加所致，但由於稅率略高，2022 年第二季度的養老金福利部分抵消了這一影響。 GAAP 每股虧損比上年增加 0.41 美元或 0.36 美元，主要是由於與 PARC 捐贈有關非服務退休相關成本更高重組的 1.32 億美元費用。

Let me now review revenue and cash flow in more detail. Turning to revenue. Equipment sales of EUR 420 million in Q2 rose 14% year-over-year in constant currency or around 15% in actual currency. Growth was driven by better availability of product, particularly in the Americas and for our higher-margin A3 devices.

現在讓我更詳細地回顧一下收入和現金流。轉向收入。第二季度設備銷售額為 4.2 億歐元，按固定匯率計算同比增長 14%，按實際貨幣計算增長約 15%。增長是由更好的產品可用性推動的，特別是在美洲和我們利潤率較高的 A3 設備。

As expected, backlog has now returned to a normalized level. We will no longer provide detailed backlog information as it is being managed in the normal course of business. And we do not expect change in backlog to materially affect results going forward.

正如預期的那樣，積壓現已恢復到正常水平。我們將不再提供詳細的積壓信息，因為它是在正常業務過程中進行管理的。我們預計積壓訂單的變化不會對未來的結果產生重大影響。

Consistent with recent quarter, revenue growth outpaced equipment installation due to the favorable mix on pricing. Installation growth was strongest for our high-margin A3 product on color production equipment. Entry A4 installation were down year-over-year due to the ongoing normalization of work-from-home trend.

與最近一個季度一致，由於有利的定價組合，收入增長超過了設備安裝。我們的高利潤 A3 產品在彩色生產設備上的安裝增長最為強勁。由於在家工作趨勢的持續正常化，入門級 A4 安裝量同比下降。

Post sales revenue of $1.3 billion fell around 3% in actual and constant currency year-over-year. Postal decline were driven by lower IT hardware and paper sale, lower finance income and the elimination of Fuji royalty on PARC revenue.

按實際和固定匯率計算，售後收入為 13 億美元，同比下降約 3%。郵政業務下降的原因包括 IT 硬件和紙張銷售下降、財務收入下降以及 PARC 收入中富士特許權使用費的取消。

Revenue from contractual print on digital services our largest and more stable source of revenue was down slightly. Growth in Digital Services, including the benefit of a recent acquisition and benefit of pricing improvement were offset by a slight reduction in our service fleet.

我們最大且更穩定的收入來源——數字服務合同印刷收入略有下降。數字服務的增長，包括最近收購的好處和定價改進的好處，被我們服務機隊的略有減少所抵消。

Geographically, both regions grew total revenue in actual and constant currency. EMEA grew faster than the Americas due to higher post sale revenue growth, including the prior year acquisition of Go Inspire. Let's now review cash flow.

從地理位置上看，這兩個地區的總收入（以實際貨幣和固定匯率計算）均有所增長。由於較高的售後收入增長（包括上一年收購 Go Inspire），歐洲、中東和非洲地區的增長速度快於美洲。現在讓我們回顧一下現金流。

Free cash flow was $88 million in Q2, higher by $186 million year-over-year. Operating cash flow were $95 million in Q2 compared to a use of $85 million in the prior year. Improvements were mainly driven by growth in operating income, a onetime contract termination payment in the prior year on the net source of cash associated with financing asset.

第二季度自由現金流為 8800 萬美元，同比增加 1.86 億美元。第二季度運營現金流為 9500 萬美元，而上一年的使用量為 8500 萬美元。改善主要是由於營業收入的增長、上一年一次性合同終止付款與融資資產相關的現金淨來源所致。

Finance asset activity was a source of cash this quarter of $210 million compared to a use of cash of $35 million in the prior year, reflecting the benefit of our receivable funding program with HPS partially offset by higher finance asset origination activity. Offsetting these benefits, working capital was a use of cash of $248 million, resulting in a $183 million year-over-year increase in cash use, driven largely by the timing of purchases and payments.

金融資產活動是本季度 2.1 億美元的現金來源，而上一年的現金使用量為 3500 萬美元，反映了我們的應收賬款融資計劃與 HPS 的收益，部分被較高的金融資產發起活動所抵消。營運資金使用了 2.48 億美元的現金，抵消了這些收益，導致現金使用同比增加 1.83 億美元，這主要是由採購和付款時間推動的。

Inventory was a source of cash of $76 million, reflecting recent efforts to reduce inventory following disruption to our supply chain. Investing activities were a use of cash of $5 million compared to a source of cash of $13 million in the prior year due to lower proceeds from asset sales, partially offset by lower CapEx. Financing activity consumed $220 million of cash this quarter, which includes a net payment of approximately $174 million of secured debt and dividend totaling $43 million.

庫存是 7600 萬美元的現金來源，反映出我們在供應鏈中斷後最近為減少庫存所做的努力。投資活動使用現金 500 萬美元，而上一年的現金來源為 1300 萬美元，原因是資產出售收益減少，但被資本支出減少部分抵消。本季度融資活動消​​耗了 2.2 億美元的現金，其中包括約 1.74 億美元的擔保債務淨付款和總計 4300 萬美元的股息。

Turning to segments. Beginning this quarter, we revised the presentation of our segment measures, transferring revenue and costs associated with operating lease from FITTLE to our print and other segments. This change was made to better reflect differences in ownership and oversight for this type of leases between segments including the effect of the receivable funding agreement with HPS.

轉向細分市場。從本季度開始，我們修改了部門衡量指標的表述，將與經營租賃相關的收入和成本從 FITTLE 轉移到我們的印刷部門和其他部門。做出這一變化是為了更好地反映各部門之間此類租賃的所有權和監管差異，包括與 HPS 的應收賬款融資協議的影響。

The result is a reduction to FITTLE segment revenue and profit. FITTLE origination volume grew 36% year-over-year. Captive product origination were up 45% on higher Xerox equipment revenue, particularly in the mid-market. Non-captive channel originations, which includes third-party dealers and non-Xerox vendor grew 26%, a function of growth in new dealers relationship on third-party equipment origination.

其結果是 FITTLE 部門的收入和利潤減少。 FITTLE 的發行量同比增長 36%。由於 Xerox 設備收入增加，自有產品的產量增長了 45%，尤其是在中端市場。非專屬渠道來源（包括第三方經銷商和非施樂供應商）增長了 26%，這是第三方設備來源新經銷商關係增長的結果。

As expected, FITTLE finance receivables were down 9% sequentially in actual currency reflecting a runoff of existing finance receivable and HPS funding of around 40% of FITTLE Q2 origination. FITTLE revenue grew roughly 5% in Q2, mainly due to higher commissions associated with the sales of finance receivable asset, partially offset by lower finance income and other fees, a result of a decline in FITTLE finance receivable asset base.

正如預期，FITTLE 財務應收賬款按實際貨幣計算連續下降 9%，反映出現有財務應收賬款和 HPS 資金的流失約佔 FITTLE 第二季度原始資金的 40%。第二季度 FITTLE 收入增長約 5%，主要是由於與應收融資資產銷售相關的佣金增加，部分被 FITTLE 融資應收資產基礎下降導致的財務收入和其他費用下降所抵消。

Segment profit for FITTLE was $0, down $6 million year-over-year, primarily due to higher bad debt expense, reflecting year-over-year origination increase. As noted last quarter, we expect improvement to bad debt expense going forward as our finance receivable book decline.

FITTLE 的部門利潤為 0 美元，同比下降 600 萬美元，主要是由於壞賬費用增加，反映了同比起源的增加。正如上季度所指出的，隨著我們的財務應收賬款下降，我們預計壞賬費用將有所改善。

Print and other revenue was essentially flat year-over-year in Q2. Print and Other segment profit improved $78 million versus the prior year quarter, resulting in a 470 basis point expansion in segment profit margin year-over-year driven by improved product supplies, lower logistic costs, favorable mix on the benefit of price and cost actions.

第二季度印刷和其他收入與去年同期基本持平。印刷和其他部門的利潤與去年同期相比增加了 7800 萬美元，在產品供應改善、物流成本降低、價格和成本行動效益的有利組合的推動下，部門利潤率同比增長 470 個基點。

Turning to capital structure. We ended Q2 with around $570 million of cash, cash equivalents and restricted cash, a reduction from Q1 level, mainly due to the net repayment of secured debt. Net core cash of around $50 million was down from the prior quarter. $2.6 billion of the remaining $3.1 billion of our outstanding debt supports our finance assets with the remaining debt of around $500 million attributable to the non-leasing business.

轉向資本結構。第二季度末，我們擁有約 5.7 億美元的現金、現金等價物和限制性現金，較第一季度水平有所下降，主要是由於擔保債務的淨償還。核心淨現金較上一季度下降約 5000 萬美元。剩餘的 31 億美元未償債務中的 26 億美元支持我們的金融資產，其中約 5 億美元的剩餘債務來自非租賃業務。

Total debt consists of senior unsecured bond, finance asset securitization and borrowing under our asset-backed credit facility. We have a balanced bond maturity ladder over the next few years. Finally, I will address guidance.

總債務包括高級無抵押債券、金融資產證券化以及資產支持信貸安排下的借款。未來幾年我們將擁有平衡的債券期限階梯。最後，我將談談指導。

Our outlook for revenue remains unchanged at flat to down low single digit and continue to reflect a stable demand environment with some contingency for potential macroeconomic weakness. As a result of recent improvements in the macroeconomic outlook and momentum in our services signings, we now expect full year revenue to come in at the upper end of that range.

我們的收入前景保持持平或下降低個位數不變，並繼續反映穩定的需求環境，以及潛在宏觀經濟疲軟的一些意外情況。由於最近宏觀經濟前景的改善和我們服務簽約的勢頭，我們現在預計全年收入將達到該範圍的上限。

Regarding operating margin, we are increasing our outlook for full year adjusting operating margin by 50 basis points to a range of 5.5% to 6% due in large part to a stronger than expected realization of operating efficiencies and revenue mix.

關於營業利潤率，我們將全年營業利潤率的預期上調了 50 個基點，至 5.5% 至 6% 的範圍，這在很大程度上是由於營業效率和收入組合的實現強於預期。

Regarding the implied trajectory of operating margin in the second half of the year, it is important to note that operating profit margin in the first half of the year benefited from favorable equipment mix, a one-off credit to bad debt expense, 1/4 of Fuji royalties, the timing of price increases relative to incremental product costs and lower labor costs associated with open position.

關於下半年營業利潤率的隱含軌跡，值得注意的是，上半年的營業利潤率受益於有利的設備組合，一次性貸記壞賬費用，1/4富士特許權使用費、相對於增量產品成本的價格上漲時間以及與未平倉頭寸相關的較低勞動力成本。

This benefit may not repeat in the second half of the year. The indicative range of profit margin outcome reflects the degree to which macroeconomic uncertainty could affect our operating profit for the year.

這種好處在下半年可能不會再出現。利潤率結果的指示性範圍反映了宏觀經濟不確定性對我們本年度營業利潤的影響程度。

Q3 adjusted operating income margin is expected to be lower than Q4, reflecting seasonality. We continue to work diligently to identify incremental cost efficiency and expect the benefit of a more flexible cost structure to grab incremental margin expansion beyond 2023.

第三季度調整後營業利潤率預計低於第四季度，反映了季節性。我們將繼續努力確定增量成本效率，並期望更靈活的成本結構帶來的好處，以在 2023 年之後實現增量利潤擴張。

Finally, we are also increasing our guidance for free cash flow from at least $500 million to at least $600 million. This increase reflects an improvement in expected operating income on incremental sales of finance receivable. Our finance results and improved outlook validate that we are on the right path with a focus on our 3 strategic priorities: client success, profitability and shareholder return. We'll now open the line for Q&A.

最後，我們還將自由現金流指導從至少 5 億美元提高到至少 6 億美元。這一增長反映了應收融資增量銷售的預期營業收入的改善。我們的財務業績和改善的前景證明我們正走在正確的道路上，重點關注我們的 3 個戰略重點：客戶成功、盈利能力和股東回報。我們現在將開通問答熱線。

(Operator Instructions) And our first question comes from the line of Ananda Baruah from Loop Capital.

（操作員說明）我們的第一個問題來自 Loop Capital 的 Ananda Baruah。

I guess 2, if I could. The first one, certainly for Steven, could be for Xavier as well. You guys continue to sort of put up resilient top line, as you've talked about, Steve. And just looks like it's lining up to be, call it, the fourth year in a row where you're sort of at $7 billion in revenue. And I was wondering if there's anything sort of structural about the market that you think has shifted. You've talked about a lot of what Xerox has done trying to address post-COVID world and some of the newer tech trends. But I guess I'd love your vigor picture thought on what previously been for many years of declining market. And now for the last 3 years has been flattish or at least the company's performance has been flattish and it looks like we're looking at like a fourth straight year of $7 billion in revenue. And then I have a quick follow-up, too.

如果可以的話，我猜是 2。第一個，當然是史蒂文，也可能是澤維爾。正如史蒂夫所說，你們繼續保持有彈性的營收。看起來你的收入將連續第四年達到 70 億美元。我想知道您認為市場結構是否發生了任何變化。您談到了施樂為應對後新冠疫情世界所做的很多努力以及一些較新的技術趨勢。但我想我會喜歡你對之前多年來不斷下滑的市場的充滿活力的想像。現在，過去 3 年一直表現平淡，或者至少該公司的業績一直平淡，看起來我們的收入連續第四年達到 70 億美元。然後我也進行了快速跟進。

Yes, Ananda. Great. So on the macro side, we have shifted significantly, as I said, over the last year towards client success. And really, what that means for us is thinking about the hybrid work place and a distributed workforce, how do we drive productivity and how do we drive efficiencies and help our clients in the macro headwinds that they're seeing. So if you think about headwinds on inflation, headwinds on use of capital, our solutions and what we're driving is to help them solve their solutions. And that's a strategic shift for us and bundling around our equipment, our software, our cloud solutions and so forth.

是的，阿難。偉大的。因此，在宏觀方面，正如我所說，去年我們已經朝著客戶成功的方向發生了重大轉變。事實上，這對我們來說意味著思考混合工作場所和分散的勞動力，我們如何提高生產力，如何提高效率並幫助我們的客戶應對他們所看到的宏觀逆風。因此，如果你考慮通貨膨脹的阻力，資本使用的阻力，我們的解決方案以及我們正在推動的就是幫助他們解決他們的解決方案。這對我們來說是一個戰略轉變，圍繞我們的設備、軟件、雲解決方案等進行捆綁。

Second is really driving digital services. As we start to see more and more companies think about their own digital transformation, digital journeys, we have a tremendous position to go play there around securing data unlocking value inside of that data. And so it's a very strategic shift for us. And so while we are focusing on obviously the macro trends of what's happening in the print industry, more importantly, the opportunity and the areas that we can play. I talked about trust and I talked about how our clients depend on us to help drive their future workplace. And we've been very, very successful in driving digital services and expanding inside of existing accounts. Xavier?

其次是真正推動數字服務。當我們開始看到越來越多的公司考慮自己的數字化轉型、數字化旅程時，我們在保護數據、釋放數據內部的價值方面擁有巨大的優勢。所以這對我們來說是一個非常戰略性的轉變。因此，雖然我們顯然關注印刷行業正在發生的宏觀趨勢，但更重要的是我們可以發揮的機會和領域。我談到了信任，也談到了我們的客戶如何依靠我們來幫助推動他們未來的工作場所。我們在推動數字服務和擴展現有賬戶方面非常非常成功。澤維爾？

Yes. Ananda, just to complete from the revenue point of view, what we see is the equipment revenue remains strong. And the demand for our products, specifically A3, remain very strong, which drive revenue. We push some price increases as well. this is supporting revenue. The other positive news is on Post-sales. Post-sales on the contracted revenue, our customers signed contract for usually a length of 5 years there. The signings and the resilience we see in this Post-sales service stream is quite strong currently here. This is the reason why we are quite a bit with the current trajectory, and we have upgraded or improved our guidance because we believe we will be closer to a flat situation compared to the low single-digit decline we had as a range before.

是的。阿南達，剛才從收入的角度來看，我們看到的是設備收入仍然強勁。對我們產品（特別是 A3）的需求仍然非常強勁，這推動了收入。我們也推動了一些價格上漲。這是支撐收入的。另一個積極的消息是關於售後。售後就合同收入而言，我們的客戶簽訂的合同期限通常有5年。目前，我們在售後服務流中看到的簽約和彈性相當強勁。這就是為什麼我們對當前的軌跡相當滿意，並且我們升級或改進了我們的指導，因為我們相信，與之前的低個位數跌幅相比，我們將更接近持平的情況。

And you guys -- you mentioned on the call, I guess, in the prepared remarks a few moments ago, Steve, sort of like a strategy shift towards services. And I think you used the term reinvention as well. So is that incremental to what you last showed at the Analyst Day? Is there something that's sort of a put right now maybe since John has come in, this incremental for the go forward that you'll be talking to us about.

你們——我想，你們在剛才准備好的講話中提到，史蒂夫，有點像向服務的戰略轉變。我認為您也使用了“重塑”這個詞。那麼，這是否是您上次在分析師日展示的內容的增量？自從約翰加入以來，現在是否有一些看跌期權，這是您將與我們談論的前進的增量。

Yes. So we'll be talking about in the future, but we've talked about very specific vertical solutions and horizontal solutions in our existing customer base. And we gave examples of working in universities in education, working in the medical industry, working in the law firms. And so we have been digging deep into where are the areas that we have products and services, software and solutions think about security, think about the world of AI and how do we continuously evolve in that space and drive value for our clients, and we really focus on client success. When I talked about freeing up both financial and management capacity, that's exactly what we're doing, really focusing on specific how do we drive client success with products and services. You will see a lot more from that from us in the future.

是的。所以我們將在未來討論，但我們已經討論了現有客戶群中非常具體的垂直解決方案和水平解決方案。我們舉了在大學從事教育工作、在醫療行業工作、在律師事務所工作的例子。因此，我們一直在深入挖掘我們的產品和服務、軟件和解決方案的領域，考慮安全性，考慮人工智能世界，以及我們如何在該領域不斷發展並為客戶創造價值，我們真正關注客戶的成功。當我談到釋放財務和管理能力時，這正是我們正在做的事情，真正專注於我們如何通過產品和服務推動客戶成功。將來你會從我們身上看到更多。

All right. That's great. I have one quick last one, just a clarification. When you mentioned Steve to open up the prepared remarks, the resiliency in sort of in customer demand you also then mentioned small, medium business. Is it small, medium business more resilient than enterprise? Or are you just -- was it just pointing out that also small medium business is resilient?

好的。那太棒了。我有一個快速的最後一個，只是一個澄清。當您提到史蒂夫打開準備好的講話時，您還提到了中小型企業的客戶需求彈性。中小型企業是否比企業更有彈性？或者您只是——只是指出中小型企業也具有彈性？

It's balanced, but we're finding stronger resilience there in SMB today while we're seeing some of the larger enterprises pull back a little bit, not change, but maybe defer some of the installs and defer some of the installations. But in general, SMB was strong from us.

這是平衡的，但我們今天發現中小型企業的彈性更強，而我們看到一些較大的企業稍微後退，而不是改變，但可能會推遲一些安裝和推遲一些安裝。但總的來說，SMB 對我們來說很強大。

And our next question comes from the line of Erik Woodring from Morgan Stanley.

我們的下一個問題來自摩根士丹利的埃里克·伍德林。

This is Maya on for Eric. Steve, if we just take a step back from the quarter and think bigger picture a little bit, we're largely past that normalization of return to office and hybrid work -- so meaning that the activity we're seeing today outside of the cycle-related dynamics is something of the new normal. So I know you touched on this a little bit earlier, but how should we think about kind of normalized revenue growth, margins and business mix going forward? And is there a path to revenue growth? And if so, when should we expect that? And do you believe that normalized gross and operating margins should be in a post-COVID world? I know this is kind of the message you provided at your -- at an Investor Day, but since there's been so much change in the last 12 months, it'd be helpful for us to understand how you think about some of these metrics over a multiyear period? And then I have a follow-up.

這是 Maya 為 Eric 做的。史蒂夫，如果我們從本季度退後一步，稍微考慮一下更大的前景，我們基本上已經過了重返辦公室和混合工作的正常化階段——這意味著我們今天看到的活動超出了周期相關動態已成為新常態。所以我知道你早些時候談到過這個問題，但我們應該如何考慮未來正常化的收入增長、利潤率和業務組合？有沒有一條收入增長的途徑？如果是這樣，我們什麼時候應該期待這種情況？您是否認為在後新冠疫情時代，毛利率和營業利潤率應該正常化？我知道這是您在投資者日上提供的信息，但由於過去 12 個月發生瞭如此多的變化，因此了解您對其中一些指標的看法將有助於我們多年期？然後我有一個後續行動。

Great. Thank you for the question. So let me start with the macro and then have Xavier comment on some more specifics. So if you take a step back, I really believe today the workforce and the hybrid workplace is really trying to continuously drive productivity and transformation. And we're seeing CEOs and companies really trying to figure out what this new normal looks like and how do we drive more productivity in that space. And it's not one size fits all. And so what we've been doing is really focusing and working on how do we drive the efficiency in the workplace of the future. That's something we have in our DNA, we've done for the last 50 years and we have a right to play there as we start to see digital transformation in large enterprises in SMB and where are the areas in products and services that we can grow. So I don't think the chapter has been written in terms of what the new normal is. We're still evolving, and I think it will continue to evolve as we try to drive more productivity and we try to drive more value inside of this new hybrid workplace, number one.

偉大的。感謝你的提問。讓我從宏觀開始，然後讓澤維爾評論一些更具體的細節。因此，如果您退後一步，我真的相信今天的勞動力和混合工作場所確實在努力不斷推動生產力和轉型。我們看到首席執行官和公司確實在努力弄清楚這種新常態是什麼樣子，以及我們如何提高該領域的生產力。而且它不是一刀切的。因此，我們一直在真正關注並致力於如何提高未來工作場所的效率。這是我們 DNA 中的東西，我們在過去 50 年裡一直在這樣做，當我們開始看到中小型企業的數字化轉型以及我們可以在哪些產品和服務領域發展時，我們有權利在那裡發揮作用。所以我認為這一章並不是根據新常態來寫的。我們仍在不斷發展，而且我認為，隨著我們努力提高生產力，並努力在這個新的混合工作場所中創造更多價值，第一，它將繼續發展。

Number two, you really think about next-generation technology, whether it's AI or ChatGPT or the future of robotics or augmented reality, the reality, the underpinning of that is significant amount of data, and we play really well in that data, securing it, having the ability to be able to orchestrate it. And so when you start to hear things like how do companies drive more productivity with these new tools, whether it's AI, whether it's RPA, Augmented reality, we are playing really well. I'm really trusted in helping our clients there. So we see significant growth and significant opportunities in the hybrid workplace as companies are really trying to figure out their new norm and driving productivity going forward. Xavier?

第二，你真的會考慮下一代技術，無論是人工智能還是ChatGPT，還是機器人技術的未來還是增強現實，現實，其基礎是大量數據，我們在這些數據方面發揮得非常好，保護它，有能力能夠編排它。因此，當你開始聽到諸如公司如何利用這些新工具提高生產力時，無論是人工智能、RPA、增強現實，我們都表現得非常好。我非常信任能夠為那裡的客戶提供幫助。因此，我們看到混合工作場所的顯著增長和重大機遇，因為公司確實在努力找出新規範並推動生產力向前發展。澤維爾？

Yes. To give color on this, specifically for 2023, what we are expecting here is that still a strong mix. And you have noticed it in quarter 1, quarter 2, quarter 4 last year as well. We have been able to mix up by having product, higher margin product, higher revenue product with some price increases that are supported on growth from an activity point of view, from market share, but also from a revenue point of view, that drove the revenue growth that we are seeing here. At the same time, as I mentioned it earlier on, the post sales with the stream is still strong here, and we are delivering and supporting essential services for our customers. And we see that in the contractual trends that we have signing are strong and as well revenue renewal rate that we are observing with clients is also show the high attachment rate on the retention of our revenue.

是的。為了說明這一點，特別是 2023 年，我們期望這仍然是一個強大的組合。去年第一季度、第二季度、第四季度你也注意到了。我們已經能夠將產品、更高利潤的產品、更高收入的產品與一些價格上漲相結合，這些價格上漲是從活動的角度、市場份額以及收入的角度來看的增長所支持的，這推動了我們在這裡看到的收入增長。與此同時，正如我之前提到的，這裡的流媒體售後服務仍然強勁，我們正在為客戶提供和支持基本服務。我們看到，我們簽署的合同趨勢很強勁，我們與客戶觀察到的收入續訂率也表明我們的收入保留率很高。

Finally, from a margin point of view, as we mentioned it on the -- you have seen this in the guidance, we are upgrading the guidance for this year from 5% to 5.5% to 5.5% to 6% there. It just shows the confidence that we have in the activity I've just described on the ability of the team to deliver operational efficiency and drive the mixed up.

最後，從利潤率的角度來看，正如我們在指導中提到的那樣，我們正在將今年的指導從 5% 上調至 5.5% 至 5.5% 至 6%。它只是表明我們對我剛才描述的團隊提供運營效率和推動混合的能力的活動充滿信心。

Great. And then just a follow-up to that, actually. So you had previously guided kind of 2Q operating margins to high 4%, low 5% but obviously came in above 6%. Where do the most significant upside come from the quarter? And why is that not sustainable as we look into the back half of the year given your guidance kind of implies operating margins contract in the second half despite cost cuts?

偉大的。實際上，這只是後續行動。因此，您之前將第二季度營業利潤率指導為高 4%、低 5%，但顯然高於 6%。本季度最顯著的上漲來自哪裡？鑑於您的指導意味著儘管成本削減，下半年營業利潤率仍會收縮，為什麼當我們展望下半年時，這種情況是不可持續的？

Yes. So I will comment it in 2 parts. So if you look at the first half, we have had during the first half, some what I call one-off items that we're supporting the margin. Specifically, we had had the benefit from Fuji Xerox royalty, which is roughly 50 basis point benefit. It was only in quarter 1. It won't repeat anymore here. At the same time, we have had some bad debt release or bad debt good news, but during the first quarter, low bad debt in the second quarter. So this is also items that we are not expecting to repeat. But at the same time, we are still confident that the reason why we upgraded the guidance. We are still confident in maintaining this overall margin for the second half of the year in a range, which is around 5.5%, potentially above this one. So that's the reason why we improved the guidance and we are still focused on driving both operational efficiencies but also ensuring that the revenue mix and margin mix come at the expected level, so we can drive overall operating margin up on free cash flow.

是的。所以我會分兩部分來評論。因此，如果你看看上半年，我們在上半年就有了一些我稱之為一次性項目的東西，我們正在支持利潤。具體來說，我們從富士施樂特許權使用費中受益，大約是 50 個基點的收益。這只是第一季度的事情，這裡不再重複。與此同時，我們也有一些壞賬釋放或壞賬好消息，但在一季度期間，二季度壞賬較低。因此，這也是我們不希望重複的項目。但與此同時，我們仍然對我們升級指引的原因充滿信心。我們仍然有信心將下半年的整體利潤率維持在 5.5% 左右的範圍內，有可能高於這一水平。這就是我們改進指導的原因，我們仍然專注於提高運營效率，同時確保收入組合和利潤率組合達到預期水平，這樣我們就可以通過自由現金流來提高整體運營利潤率。

And our next question comes from the line of Samik Chatterjee from JPMorgan.

我們的下一個問題來自摩根大通的 Samik Chatterjee。

I guess for the first one, I'm just curious how you're thinking about seasonality through the remaining 2 quarters of the year. I know you mentioned seasonality to be lower for 3Q, but more curious if you can dive into that for equipment in the $420 million of revenue you quoted in this quarter, is that sort of -- is there a tailwind there from backlog digestion? And should we expect normal seasonality even in rare in relation to equipment sales for the rest of the year? Or should we be sort of looking at it ex backlog, maybe any insights on what that underlying demand is looking for equipment sales relative to the revenue profile you have now, which might be benefiting from backlog? I have a follow-up, please.

我想對於第一個，我只是好奇您如何看待一年中剩餘兩個季度的季節性。我知道您提到第三季度的季節性較低，但更好奇的是，您是否可以深入了解您在本季度引用的 4.2 億美元收入中的設備，是否有積壓訂單消化帶來的推動力？我們是否應該預期今年剩餘時間的設備銷售會出現正常的季節性，即使是罕見的情況？或者我們應該從積壓中來看待它，也許對潛在需求正在尋找的設備銷售相對於您現在的收入狀況有什麼見解，這可能會從積壓中受益？我有後續行動，請。

Yes, hi Samik. So seasonality, as we mentioned it in the comments, we are expecting Q3 as usual. That means this is not a surprise, as usual, to be a little bit softer than Q4. As you know, Q4 is a very strong quarter. This is usually where we have the also higher mix of margin of equipment and the larger deals being signed towards the end of the year. So we are expecting it to be slightly below. But if you look at the equipment revenue growth and even on the post-sale side, we are not expecting to have like a significant decline. If you remember, last year in Q3, this is where we started to have supplies coming back on track. So the compare versus Q3 will be very different compared to the compare versus Q1 and Q2 here.

是的，嗨薩米克。所以季節性，正如我們在評論中提到的，我們照常期待第三季度。這意味著，像往常一樣，比第四季度稍微疲軟一點並不令人意外。如您所知，第四季度是一個非常強勁的季度。這通常是我們設備利潤率較高且年底簽署的較大交易的地方。所以我們預計它會略低於。但如果你看看設備收入增長，甚至售後方面，我們預計不會出現大幅下降。如果您還記得，去年第三季度，我們的供應就開始回到正軌。因此，與 Q3 的比較與此處與 Q1 和 Q2 的比較會有很大不同。

From a margin point of view, as I commented earlier on, we are still -- if I remove the one-off there, we are still expecting to get the margin in the range of 5.5% to 6% for the full year. which imply potentially a softer quarter 3, but a very strong Q4 as we have always delivered. I will comment lastly on the normalizing on where we are today. Backlog, as we mentioned it, we will not report anymore on backlog because we are now back to normal from a backlog point of view. So there is a little bit of crushing backlog. Some of it was the end of quarter 2, but we do not expect backlog being a key contributor in Q3 and Q4. And finally, just from, I'll call that, the usual seasonality of revenue. Just to summarize Q3, a little bit softer than Q4.

從利潤率的角度來看，正如我之前評論的，我們仍然 - 如果我刪除一次性的，我們仍然期望全年的利潤率在 5.5% 到 6% 的範圍內。這意味著第三季度可能會比較疲軟，但第四季度會像我們一直交付的那樣非常強勁。最後我將評論我們今天所處的正常化情況。積壓，正如我們提到的，我們將不再報告積壓，因為從積壓的角度來看，我們現在已經恢復正常。所以有一點嚴重的積壓。其中一些是在第二季度末，但我們預計積壓不會成為第三季度和第四季度的關鍵貢獻者。最後，我稱之為收入的通常季節性。總結一下第三季度，比第四季度稍微溫和一些。

Got it. Got it. And then Xavier, on the cash flow, you've done, I think, around $150 million of free cash flow in the first half, if I'm calculating it right, and that leaves about $450 million to be done in the second half. Can you just walk us through sort of the half over half, how you're thinking about working capital finance receivables sort of what plays into that significant improvement into the second half?

知道了。知道了。然後澤維爾，在現金流方面，我認為，如果我計算正確的話，你在上半年已經完成了大約 1.5 億美元的自由現金流，下半年還有大約 4.5 億美元需要完成。您能否向我們介紹一下一半以上的情況，您如何看待營運資本融資應收賬款對下半年顯著改善的影響？

Yes. So this is also aligned with the traditional seasonality we had, if you remember last year, we -- last year and the year before, a very similar pattern. The second half is much stronger. It's specifically related to items like working capital and payables. This quarter, we have a year-over-year impact of payables simply because last year, we have higher purchase some of the supply chain where, I would say, released, which make us having higher purchase in Q2 for revenue recognition in quarter 3 here. So working capital will normalize. We will have some, I would say, tailwind coming from accounts payable. Inventory you noticed in this quarter was also a tailwind with a reduction of close to $80 million. So we will see this being driven here. So that's the operational part. The second part is on finance receivable. As expected on the strategy is working, we are continuing our forward flow program with HBS. No surprises here. This is planning as expected, and we've got the full benefit of now having close to 40%, it was 40% this quarter, 40% of our origination being funded by HPS, which support the free cash flow and is helping the balance sheet. As you have noticed it as well, just my last comment, we paid down the secured debt of roughly [$180] million. So you look at the leverage ratio of the company, it has improved significantly compared to last year.

是的。因此，這也符合我們的傳統季節性，如果你還記得去年，我們去年和前年有一個非常相似的模式。下半場就強多了。它特別與營運資金和應付賬款等項目相關。本季度，我們的應付賬款同比受到影響，因為去年我們對一些供應鏈的採購量增加了，我想說的是，這使得我們在第二季度的採購量增加，以便在第三季度確認收入這裡。因此，營運資金將會正常化。我想說，我們將有一些來自應付賬款的推動力。您注意到本季度的庫存也起到了推動作用，減少了近 8000 萬美元。所以我們將在這裡看到它的驅動。這就是操作部分。第二部分是應收賬款融資。正如該戰略所預期的那樣，我們正在繼續與哈佛商學院進行我們的遠期流動計劃。這裡沒有什麼驚喜。這是按預期進行的規劃，我們現在擁有接近 40% 的全部收益，本季度為 40%，我們創始資金的 40% 由 HPS 資助，這支持自由現金流並有助於平衡床單。正如您也注意到的，就我最後的評論而言，我們償還了大約 [1.8 億美元] 的擔保債務。所以你看公司的槓桿率，比去年有明顯的提高。

And our next question comes from the line of Shannon Cross from Credit Suisse.

我們的下一個問題來自瑞士信貸銀行的 Shannon Cross。

I just have a couple. The first is, I'm curious, and I'm not sure what you can talk about, but what the benefit or impact could be from the banning of the Ninestar products into the U.S.? I know you we're sourcing some things from Lexmark. So I'm just curious, this is potentially a positive since people won't be able to get stuff in? Or is it just sort of a nonstarter?

我只有一對。首先，我很好奇，我不確定你能談論什麼，但是禁止納思达產品進入美國會帶來什麼好處或影響？我知道我們正在從 Lexmark 採購一些東西。所以我只是好奇，這可能是一個積極因素，因為人們無法將東西放進去？或者這只是一個失敗者？

Yes, Shanon, I think a couple of things. First of all, we're constantly looking at our supply chain and making sure we're adhering to all regulatory and government requirements around the world and Ninestar was no different than that. And we immediately looked at and make sure that we continue to be a good corporate citizen around the world. From a materiality standpoint, it wasn't material for us in the quarter and going forward, we should be just fine.

是的，香農，我想有幾件事。首先，我們不斷關注我們的供應鏈，並確保我們遵守世界各地的所有監管和政府要求，納思达也不例外。我們立即審視並確保我們繼續成為世界各地的優秀企業公民。從重要性的角度來看，這對我們本季度來說並不重要，展望未來，我們應該沒問題。

Okay. And then I'm curious, how do you think about your cash balance? And then use of cash, you have about, I think, $560-some-odd million worth of cash right now. You used to run at a higher level of company smaller. Wondering what you think your cash balance needs to be. And then as you have cash come in, in the second half of the year, how should we think about usage there versus the debt repayments, which clearly you've done a good job of reducing your debt load, but you still have about $1 billion over the next couple of years.

好的。然後我很好奇，你如何看待你的現金餘額？然後使用現金，我認為你現在大約有價值 560 多萬美元的現金。你曾經在較小的公司中擔任較高級別的職務。想知道您認為您的現金餘額需要多少。然後，當你有現金進來時，在下半年，我們應該如何考慮那裡的使用與債務償還，顯然你在減少債務負擔方面做得很好，但你仍然有大約 1 美元未來幾年將達到 10 億美元。

Yes, Shanon, good question there. So we are good with the cash balance. That means this level of $500 million or above is the level where we should be. So we manage, we have seasonality within the quarter of cash here, but this is the right level for us. Regarding use of cash, as you know it, our policy has not changed, shareholder distribution of at least 50% of free cash flow. We are mainly focused on paying down or paying the dividend. So this is roughly $180 million of dividend. And there will be, I would say, I'll comment later on when we will generate $600 million of free cash flow, how we'll have the use of cash. Just would like to comment on one topic. We do not have board authorization on share repurchase. So we are not planning to do share repurchase and any cash that we can use or we are willing to use there will be to support the business development.

是的，香農，這是個好問題。所以我們對現金餘額很滿意。這意味著 5 億美元或以上的水平是我們應該達到的水平。因此，我們管理，我們的現金季度內有季節性，但這對我們來說是合適的水平。關於現金的使用，如你所知，我們的政策沒有改變，股東分配至少50%的自由現金流。我們主要關注支付或支付股息。所以這大約是 1.8 億美元的股息。我想說，稍後我將評論我們何時將產生 6 億美元的自由現金流，以及我們將如何使用現金。只是想就一個話題發表評論。我們沒有董事會授權回購股份。因此，我們不打算進行股票回購，我們可以使用或願意使用的任何現金都將用於支持業務發展。

So does that mean you're looking more at M&A or just internal, like ramping up CapEx?

那麼這是否意味著您更多地關注併購或只是內部，例如增加資本支出？

We are looking at any opportunity. It could be organic, it could be inorganic. M&A is part of the list.

我們正在尋找任何機會。它可以是有機的，也可以是無機的。併購是其中的一部分。

And this does conclude today's question-and-answer session. I'd now like to hand the program back to Steve Bandrowczak for any further remarks.

今天的問答環節到此結束。我現在想將程序交還給 Steve Bandrowczak，以供進一步評論。

Thank you for listening to our earnings conference call this morning. We continue to face dynamic operating environment as workplace behavior and technology needs evolve to accommodate a rapidly changing hybrid work environment. In the past year, we have bolstered our operating and financial model solidifying a foundation from which we can grow as we help clients solve their most pressing workplace challenges. I thank you each for joining our Q2 earnings call. Have a wonderful day.

感謝您今天早上收聽我們的財報電話會議。隨著工作場所行為和技術需求不斷發展，以適應快速變化的混合工作環境，我們將繼續面臨動態的運營環境。在過去的一年裡，我們加強了我們的運營和財務模式，為我們在幫助客戶解決最緊迫的工作場所挑戰的過程中不斷成長奠定了基礎。我感謝大家參加我們的第二季度財報電話會議。祝你有美好的一天。

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

女士們、先生們，感謝你們參加今天的會議。這確實結束了該程序。您現在可以斷開連接。再會。