2020 Annual Report

Mission-critical Services and Solutions for Exceptional Outcomes

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To My Fellow Shareholders

2020 was a year like no other. And despite the many challenges that we all faced – as individuals, as a company, as a world – we worked hard and made it a good year for Conduent.

While Conduent was not exempt from the impact of COVID-19, we moved quickly to ensure that our associates were safe and that we were able to continue serving our clients and their end users. We are now a stronger, more agile company and are improving financial and operational performance every step of the way along our journey.

Our diversified business model also served us well this past year. Our experience in operating a robust work-from-anywhere operation enabled us to move rapidly to continue to meet our clients’ needs.

In 2020, we achieved the revenue targets we set prior to the start of the pandemic, and we had very strong sales performance – with signings of more than $1.9 billion in total contract value. We not only kept our people safe and supported through this challenging time, but we also increased our commitment to making progress on Environmental, Social and Governance initiatives in 2020, with a strong focus on Diversity and Inclusion. We improved client relationships and drove utilization of shared services and best practices. We worked to standardize our governance processes and protocols for client implementations, risk and incident management and sales and account management. Our technology focus was on consistent, high- quality and secure service delivery through our IT command center, driving improvements in proactive platform monitoring and incident management protocols. Our delivery improved dramatically, and this is leading to a stronger market reputation. Industry analysts and advisors are confirming this through support and acknowledgment in their research and rankings.

Our continued journey of progress builds upon our legacy as one of the original pioneers in the business process outsourcing space. Conduent brings deep and diversified expertise across a broad range of industry segments, and our vision – to become the leading business services partner of choice for businesses and governments globally – will be achieved as a result of that expertise. Through our dedicated associates, we deliver mission critical services and solutions on behalf of businesses and governments, creating valuable outcomes for our clients and the millions of people who count on us.

Our clients are at the heart of our mission and we are committed to their success. We will be measured by how our clients reward us with business resulting in Growth, how we expand our margins through Efficiency and how we maintain and improve that critical “ticket to play” called Quality.

Growth

We are focused on truly understanding our clients’ business, strengthening our relationships and driving valuable outcomes that enable them to reduce costs and improve end-user satisfaction. Our clients have renewed contracts with us and given us more work in adjacent service lines, and we’ve gained new clients who have put their trust in us. Our financials exceeded expectations on both the top line and bottom line in 2020, and we had a significant improvement in our client satisfaction scores for the second year in a row. Driving our clients’ success remains pivotal to our success.

Efficiency

We have simplified and standardized our operating model, removing unnecessary management layers and creating more robust processes to enable greater transparency. In addition, we drove process and technology efficiencies across our business and centralized service delivery where it reduced cost and improved processing time. We agilely responded to clients’ shifting needs and received positive feedback from them for our resilient services throughout the COVID-19 pandemic.

Quality

Our clients count on consistent, high-quality service delivery. We made significant progress in improving platform uptime and operational readiness through technology investments and new talent. We continued making progress in consolidating our data centers into two world-class facilities, driving redundancy, stability and agility, and we improved the client implementation experience. These efforts significantly enhanced client confidence and retention.

We have more hard work ahead of us to continue our momentum. Going forward, we will assess our diverse portfolio and apply a differentiated investment strategy to optimize, enhance and expand our solutions as necessary based on the needs of our clients. We are focused on positioning Conduent for long-term success and driving value for clients and shareholders.

None of our success in 2020 could have been possible were it not for the dedication and resilience of our people, who exemplify a culture of teamwork, accountability and collaboration. Thank you for joining our Conduent team on this journey and for your continued support. We remain excited about what lies ahead for Conduent.

Cliff Skelton
Chief Executive Officer, Conduent Incorporated