Ticker: XRX | Date: Dec 24, 2025 | Confidential

Slide 1: Title

Project Zero

Unlocking $40/Share Value in Xerox Holdings Corp

Golden Door Research Activist Campaign Deck

Slide 2: Executive Summary

The Thesis in Brief

• The Disconnect: Market prices XRX as a dying business (<5x FCF). We view it as a mismanaged utility with 10+ years of stable cash flow.
• The Opportunity: Operational mismanagement has obscured the underlying profitability. SG&A is ~25% of revenue vs. 14% peer median.
• The Fix ("Project Zero"):
  1. Cut $400M in bloat (Corporate, Real Estate, "Growth" Sales).
  2. Kill "Ventures": Stop lighting cash on fire (3D Printing, PARC).
  3. 100% Capital Return: Buy back 10% of float annually.

Target Price: $27.00 (Base) | $40.00 (Bull) | +200% Upside

Slide 3: The "Melting Ice Cube" Myth

Visual: 10-Year Chart of Revenue vs. Free Cash Flow

Narrative:

• "Wall Street hates Xerox because revenue is declining (-32% in 5 years)."
• But cash flow is resilient. XRX generated $500M+ FCF in 2024.
• The decline is secular (Print is shrinking), but the profitability of that decline is a choice.
• Key Insight: A shrinking business can be a great investment if costs shrink faster than revenue. Xerox management has failed this test.

Slide 4: The Scorecard (Management Failure)

Visual: Table comparing XRX to HPQ (HP Inc) and Sector Median

• Note: HP operates with channel leverage. Xerox's direct model is structurally inefficient.
• Conclusion: Xerox is bloated. It runs a "Growth Tech" cost structure on a "Decline Utility" revenue base.

Slide 5: The $680 Million Opportunity (SG&A)

Visual: Waterfall Chart showing potential Op Income Bridge

• Current SG&A: $1.62 Billion (24.5% of Sales)
• Target SG&A: $1.10 Billion (18.0% of Sales - still above median!)
• Savings: $520 Million
• Reinvestment: $120M to Service Quality
• Net Benefit: $400 Million in Incremental Operating Income.

How?

• Exit 50% of leased real estate.
• Reduce layers of middle management (span of control <4).
• Slash "Brand Marketing" (Xerox is a utility; it doesn't need Super Bowl ads).

Slide 6: Stop The "Ventures" Bleeding

Visual: Timeline of Failed "Growth" Pivots

• 2019: Pivot to "3D Printing" -> Sold for loss.
• 2020: Pivot to "Software" -> PARC spun out.
• 2022: Pivot to "FITTLE" (Financing growth) -> Bad debt spike.
• The Reality: Shareholders have paid $1.5 Billion for these experiments.
• The Demand: Shut it down. Maintenance R&D only (<$60M/yr).

Slide 7: The "Project Zero" Financial Model

Visual: Bar chart of EPS Expansion

• Result: Even with revenue falling to $6.0B, EPS quadruples due to cost rightsizing and buybacks.

Slide 8: Valuation & Upside

Visual: Football Field Valuation Chart

• Status Quo: 8x P/E on $1.14 = $9.12 (Downside Protected by Asset Value)

• Project Zero (Base): 6x P/E on $4.50 = $27.00 (196% Upside)

• Project Zero (Bull): 8x P/E on $5.00 = $40.00 (330% Upside)

• Why 6x? Conservative multiple for a declining but cash-rich asset. Consistent with tobacco/coal stocks.

Slide 9: Implementation Timeline

• Day 0: Freeze all hiring. Freeze all M&A.
• Day 30: Announce "Project Zero" Restructuring.
• Day 90: Exit FITTLE non-core originations.
• Day 180: Complete Real Estate rationalization.

Slide 10: Conclusion

Xerox is the ultimate Self-Help story. It does not need the print market to grow. It does not need a new invention. It just needs discipline.

Vote FOR Project Zero.