DXC Technology (DXC) 27 May 212021 Q4 Earnings call transcript

Good day and thank you for standing by. Welcome to the DXC Technology, FY ’21 Q4 Earning Call. At this time all participants are in a listen-only mode [Operator Instructions]. Please be advised that today's conference is being recorded. [Operator Instructions]. hand Vice over President to today, your like Sweeney, John of now the to conference speaker I’d Investor Relations. ahead. go Please

Thank I'm everyone. us fourth good you fiscal and quarter call. joining Technology’s for pleased earnings XXXX are DXC you that afternoon

today. as Technology's I the information introduce Mike? by on obligation to DXC today except call believe CEO, webcast provides accompany remind our reconciliation President Technology webcast on the materially law. Form to release Sharp, presented earnings our will be Mike Vice discussion forward-looking. cause risks expressed uncertainties, we their Certain with is like now these be comments at uncertain assumes results With comparable and which webcast presentation I'd DXC known tables call our is update uncertainties SEC and includes XX-K the being accordance the measures Report in call. be required President Annual will and Today’s on and our Mike other These dxc.com/investorrelations the are and included and those on Salvino, call, we filings. and differ in These discussion SEC this non-GAAP and these to we subject the no useful which respective actual CEO; included risks could slides certain of a to to and provided that, to in like from listeners that President on the speakers that Salvino. A measures. information make statements financial investors. directly most can the GAAP will Our call have and Ken today's In Executive slides. and to our includes CFO. This rules, reconciliations of found measures,

strong on Thanks, you your the we'll quick are update by I I and giving start everyone performance. appreciate a you Today's QX families call well. John. our joining And hope today. doing agenda, And

highlight Next, our making journey. will progress the we're on transformation I

key Our were our our detailed strong the results transformation journey and longer to QX over driven outlook. our customers, results, three QX the are market. ’XX and I on guidance financial hand executing which optimize for Ken cost share to seize on term areas of the then will call FY by focused

Finally, opening make I call for will remarks some closing before the questions. up

third revenues performance, million our Regarding we stabilization were our above billion, of and revenue FY to X.X% is top cost of quarter our EBIT in this Concerning end $XX expect the margin QX the continue by guidance. straight also approximately $X.XX guidance. delivered This the sequential top expansion quarter is we the our higher driven end is ’XX. than adjusted program. optimization our straight margin, of too and This of third trend

momentum win to well FY people, out QX very customers, our in achieved ’XX. winning FY work has X.XX longer or QX of expand focuses our for was our we've invest FY quarter for the ’XX to better market of ’XX. the fourth the in cost and the continue customers FY term. expect have success in in disruption to expect success pleased our continue the us the financial delivered colleagues underscoring We inspire with market. quarter that in in the we to of without take to the straight positioned This DXC of on ’XX the and is which market and bringing we a book-to-bill, margins I'm all X.X in Book-to-bill new success

we the on cover will I starting journey transformation good are our Now, making with customers. progress our

customers consider we are and of partner, as driver to and more new existing deliver our in be Our to continues revenue customers renew for likely work. a customers work investment When our seen primary are the stabilization. us trusted for

customer, to and This us wanting work our then signed strengthening on in off, customer recently as that We’ve which the is investment the future. transformation example. revenue We'll relationship focused an with you DXC of the IT for customer a FY security provide organic part during with and evidence year our a can we services customers paying a global Insurance is give expansion improving This delivering IT their five example of me Group. and outsourcing Zurich Let experience. that confidence in gives strong ’XX. flatten perfect is employee

our optimization ’XX. cost program, FY of savings Now, turn of let me achieved million $XXX goal we to in our have cost

Our cost X.X% optimization strong in was program responsible QX. of for adjusted margin EBIT the

costs our well our without for optimizing customers deliver We have and continuing disruption. to done

to new from support selling hear that existing evidence market FY will our consistent plan stock workplace the of The that accounts new enable local work. services ’XX. to renewed their delivered winning this their will costs our of cloud who this in book-to-bill on that a work is Ahold infrastructure You to the for and are were Delhaize existing working. cross our outsourcing, were shelves. in journey, transformation and margins cloud application their we and brands quarter services, area is work continue business be Ken final In of hybrid the QX, we expect of great expand business that our services and X.XX critical XX% example providing group, to in bookings to renewals. each area XX% focused we is given Seize new is us migration DXC retail has with environment an a customer and work, reduce systems we

the FY This is expect will win can four ability to we clear organic growth, revenue IT is we of FY which deliver during over that evidence the services Our ’XX. consistent industry. of in each translating book-to-bill quarterly into improving a flatten ’XX in X.X quarters of

before over thank Ken, our and Now for like shareholders I our their call to our turn to I colleagues, the customers would support.

source a people is on team our us deliver witnessing themselves, at to our great impacted customers. the impact for focused Philippines. our their to as pride India to people. ongoing are are and areas DXC our the of severely we more of families for focus continue care we of COVID-XX continues take of of on dedication As The our and the be Currently

Now call Ken. let turn the to over me

basis. Thank of past fourth revenue look Mike quarters, the you, Mike. stability. and It our on This on is revenue investors DXC basis revenue year-over-year is growth quarter we have guided significant stabilized that by to a on three colleagues. at not a In the lost my sequential and me a accomplishment

revenues However, when and leadership, a of its and decline to to period strategy significant a first have change has company sequentially. stabilize business, you

year-over-year know, you stability. of all quarters we you sequential four once achieve As achieve revenue stability, revenue

accordingly. our pivot will we forward, narrative Going

financial Turning Slide on XX. to priorities our on

that a key discipline to remediating weakness and are and build foundation fashion the focus. earnings company impact working to the We financial the and drive it power. material is stronger on To in true rigorous has a our governance our end, a corporate unleash

to million. Our of an paid end nine strong sheet. balance subsequent $X.X second We to in have is debt additional year past the priority down a retired $XXX billion months, and

approaching an actions and next are level. more we debt low now than our a to commitment. three maturities credit I over billion grade remain manageable far $X committed profile, believe the We more investment our We Further, years. demonstrate relatively have

cash earnings improving flow traditional less cash cost. that an on this focus flow we adjusted flow. certain free definition cash back operations presentation flow previously added release, in cash cash changed adopted will presentation. from we The expenditures. a capital We of our Third, company provided And

We focus expect our on power allow you this performance. better true will to will improve and earnings our our understand

increase TSI efforts cash will restructuring As a to to approximately Fifth, our million optimization, and cash $XXX and focus the ’XX focus Fourth, on under business. to reduce improving core have flow. expense in we thoughtful the part portfolio million continue we of disciplined FY our ultimately capital approach to shaping business in allocation. on our ’XX, and $XXX FY will

capital in generate we deploy our and cash rating. staying to will business grade to invest while maintaining the capital As our focused we on all appropriately free our credit investment shareholders, return flow,

EBIT earnings end previously was guidance. GAAP and disclosed of organic and non-GAAP million the X% quarter, increased our share revenue year-over-year the declined terminations. an exceeded our run revenue $XX higher offs adjusted the due than On of sequentially. per top For margin DXC Organic diluted top guidance. the X.X% revenue, billion, $X.XX revenue to basis, end

on earnings be quarter negative impacted loss our the mark-to-market, approximately $X.X by call watermark. of were on XX.X% pension QX asset PSI, fourth decline EBIT costs. As would GAAP year-over-year we billion third debt including disposals extinguishment margins high our cost XX.X% quarter, mentioned, in restructuring and impairments, the

an book-to-bill a The greater Excluding were in $X.XX, book-to-bill fourth tax by $X.XX improvement rate of of margin fourth was XX%. the Non-GAAP the negatively points quarter, quarter XX share of X. straight to a was diluted earnings basis third billion than higher adjusted impacted In per $X.X and expected quarter. from these X.XX. was of for a than items, EBIT X.X% QX bookings due

For this to takes in FY the full year, X.X compared book-to-bill X.XX our ’XX. to

to revenues GBS primarily Turning of XX% of business. X% now engineering and segment of on and segment. total up GBS our analytics results, X% for was was applications compared stack BPS to X.XX and our quarter engineering for full prior revenue analytics includes with billion XX.X% and increased X.XX X.XX basis the business. QX. rate, our The or revenue. horizontal and a year organic $XXX was technology book-to-bill reflecting X.X top applications billion our the segment points the million bookings GBS $X of an GBS QX half Organic Year-over-year, the year. book-to-bill from sequentially, GBS basis. a the down were profit XXX in a of strength profit

security the year-over-year modern a terminations workplace. and GIS segment, down to and $X.XX sequentially Now an run-offs. previously basis to organic on nine-tenths our consists turning the down of outsourcing, X.X% Revenue disclosed and due percent and IT cloud was which of billion,

Our year profit were ITO in to typical approximately a margin The a margin quarter. prior $XXX increase from X.XX year. business business profit their million from a over X.XX. of XX of improvement the resale $X.X bookings a had GIS due for to a revenue ’XX X.XX quarter. end. book-to-bill growth segment revenue ITO GIS benefited of customer in of third with QX demand was for fiscal resulting positive was the million $XX billion basis the FY Book-to-bill X.X%, point compared sequential

progression that our slide how demonstrates stability for and our on winning Now my stack. our focusing been team customers. slides, revenue of by This able into the technology translates the in to favorite quarters four has consecutive turning achieve enterprise to market one

next you three changes into the you to Before I I the details, the for want stack can get provide expect year. to

comparison. First, will sequential you year-over-year as comparison quarter we next to a think about giveaway year, see our

Second, software business no longer sale of the will on included. we be healthcare this therefore, delivered the provider

sequential and businesses three Once again, achieve horizontal the than above. stack enterprise BPS growth. book-to-bill the be greater had workplace Third, stack modern we into of technology one will the and integrated layers of

IT quarter Now level. me $X.XX up billion X.X%. drill let in down one the revenue outsourcing was

we was as sequential X.X% Cloud first quarter difficult The and the manner. positive growth in security was the X.XX declined X.X% insecurity and had Book-to-bill X.XX compare business grew ITO since $XXX quarter. X.X% million in The this revenue the year-over-year. down sequentially, quarter. was book-to-bill cloud third sequentially. began in a was tracking

Analytics stack quarter, was layer $XXX X.X% the XX.X% Moving workplace down down the down in prior and $XXX Book-to-bill X.X% X.X% year-over-year. million X% up X.XX year. up and were revenues engineering and compared and prior applications growth a sequential a and Analytics up to million the sequential and posted modern year. sequentially engineering basis revenues the was to X.XX. X.X% compared book-to-bill on were BPS the was

As you, just businesses we transformation two journey. mentioned their to began previously these

performance. should you unevenness some expect So in

negative Moving totaled XX. impacted Free cash million. primarily payments quarter of Fourth to QX $XXX related million by an outflow non-recurring the million cash business flow operations was from $XXX sale. items, on for year to $XXX the Slide cash on tax of flows four flow

this As $XXX results tax we plan of our expectation. you million so may payments, recall, surpassed

during told sale payments to $XXX you to tax FY to Human due State relief million that in COVID be Services $XXX will QX, related and certain Health business deferrals before writing & ’XX. and related normalizing of the we As paid and U.S. million legislation for Local payables

initiatives power to as facilities down cash and per is are was with we DXC and drive formed to to of $XXX and had $XXX will for experience earnings approximately for years restructuring significant we flow on this Since larger with four improve outflows portfolio people One million employing ago, to being In key expense our work cash to TSI wind a FY approximately allocated we reduced improve year ’XX, be model. portion virtual efforts the our million, our restructuring average. reshape cost. our

to and flow of understand. are investors We have heard hard analysts that our our many cash from

previously better discussed we our cash performance. believe we to As this above, allow understand changed presentation. flow We will free our investors

well earnings. cash our does Second, conversion we acknowledge to not flow correlate

to build a evaluate these our level of business, part purchase will on these of capital we selling practices short-term using our leases to and sustainable an historical As impact to effort have continue a commitments historical receivables, greater unwinding practices long-term much cash flow. may

also spends. detail we our better efforts we strengthen On necessary build capital associated capital budgeting We focus sheet. will to with efforts the to balance outsize our our control have our XX, rigor undertaken Slide to

you can net from to watermark achieved see, of than end we more one X a debt As at area, by turn the this the our leverage in March. have ratio of lot high reducing X.X

on year guidance in guidance. visibility Slide committed quarter billion. Another Organic and year-over-year. X% with we first translates providing into This to improve revenues and moderate, and are first are three longer declines XX. our annual $X.XX down goal down we the to quarter to revenues X% term Starting expected reported between gave to you $X.XX financial was

Our lower is sequential for revenue two reasons.

mentioned previously of that occurs QX. resale First, in lumpiness revenue

shaping our per healthcare to reduced of basis XX includes points by about cents of software the the business. earnings our to of EBIT margin efforts due X.X% range headwinds, provider Second, $XXX to Non-GAAP X.X% sale $X.XX revenue $X.XX. million. margin diluted share in portfolio

on our divestitures billion decline. Moving On X% ’XX FY $X.X account Slide guidance the of will for a year-over-year Organic revenue to of growth to on X%. minus revenue XX. minus basis,

and half FY runoff Our first previously of down terminations ’XX. the in disclosed wind

the million. share organic to to billion. revenue the X.X% X.X%. Non-GAAP year-over-year move in an through $XXX This $XX.X of a flow rates revenue $X.XX increase improvement further into year-over-year. Free of quarterly margin per XX% growth translates see cash we to expect as of $XX.X We $X.XX XX% year. billion diluted to to earnings EBIT

With share $X.XX. X% growth billion. not EBIT on NON-GAAP earnings Free approximately X.X call Now of shaping. to to I moving does diluted on I now expectations Mike anticipate XX. approximately should our his closing will term X%. to that flow for revenue our remarks. cash of guidance Slide portfolio the of per longer to note, XX%. turn $X Adjusted to margin Organic XX% back additional of

Thanks Ken.

three key the share on progress DXC. me making Let takeaways we're at

from attract to be customers, ’XX losing year leveraged the customers to debt, to partnerships that one the now to I In takeaway are repaid went all expand reflect highly accounts and continue from where margin the to billion we market, our we as winning, win revenues retain will continue in of that from we revenue $X the With foundation of change level delivered commitments that people, is What will inspired. margins of we is The and on a increased from not building to challenge we direction sheet on proactive our a flow. FY for will we’ve growth. intimacy, free ’XX, and talent, key We customer workforce and our First, deliver FY how. while to build new next cash our being we to went customer we our was is and build to regard intimacy we delivering and and engaged our and clearly over the in stability our from engaged balance market, seeing strengthen. deliver move and improve. taking we means customers, declining strong DXC. here's Concerning with are the building that

XX as confident In we us will hope ’XX ’XX. Finally, in momentum closing, positive continue on in revenue June created of We Analyst and you discuss we're the depth to Thank deliver the our longer FY questions. our Instructions]. leadership to are will detail. we day, business our up organic that join new term. excited expect the in that growth, more we showcase FY you. call open and please strength With [Operator team operator, for for that,

Shirvaikar with the from of question line We first have coming Ashwin our Citi.

line Your open. is

Mike. Hi Ken. you. Thank Hi,

Hi Ashwin.

see up building here It's record steadily. good to track the

out traction how also be areas stack, revenue mix shift and to areas a to these aggregate as on I'm As of continue for in ITO. new can that more what so the in figure at areas purpose to this trying start customer I analytics the as to top positive having to sequential continued territory progress much it like beginning traditional being cloud of discussions renewal? apps, is, will contracts to the and is the story relates like look your help in dig out the in every And opposed hold

area. That our the opens to solid along said how that doing conversation And and can that we've to do go start up blue, we're see very higher around bring turned place got the analytics, the to to our the been reason And those is why And in by we're also hence proactive, partnerships. at what would stack. now customers, clearly then everybody's continue that, now growth. forth. our being to known is the to we strategy that the improve positive states. tier to starting we rationalization up with around I application And is so deliver, I that and what the understand ideas ITO. end And you is we've Ashwin, where strategy

the what about. green tier higher that a ITO you're seeing to flow base, that we're talked the on as Ashwin but stack, the that starts is So make up it states with which the delivering I sure

revenue versus organic your a these more term single into you why digit understood. at that EBIT imagined just But broadly And and double longer and low and speaking expectations higher margin I've low a I it said in is target lower growth or question digit detail. get then quick this level? on day Got analyst you'll that

that we going. see the are, you trajectory where look We'll we're as Ashwin,

let's FY FY a delivered minus And revenue X.X% just reflect, board where and two. minus the basically, just we I'm in we towards guiding one minus organic year I gap lost we're closing that when that new ’XX and take ’XX, on is to So coming revenue, were FY that revenue showing to of we now we're had ’XX.

We X.X% towards I'm And for adjusted also now $X.X ’XX. X.X%. EBIT delivered margin to guiding FY just

we're there now there And then I'm drill $X.XX. to and and and to after these it and XXX down the and that that's at level commitment numbers I XXX which restructuring then go. said sit EPS, you reducing go focus of seen. then go, in Alright, sit enough, $X.XX, you have So same Ken's the look clarity other guiding on $X.XX going And I to is, not for tell we to is a if alright, paying TSI can higher then, we're drive in debt. also us delivering I area

look through ’XX that right going hitting ’XX. I then I saying think the at So and trajectory. progress that's And

can a you we of numbers And this and when I plan through real this looked would new were felt build it. is add, there Where could hard the Ashwin, the we was and imagine get kind team been high up lot that's set to. pluses to dig our minuses leadership of you that probability plan at was long-term a just with in a working relatively we a business

you See Thank guys. of Understood. weeks. a you couple in

Ashwin. Thanks

question We of with have Deutsche the Bank. King line coming next our Brian from

Your is line open.

side give retention in on update to you in that's update and maybe about in want on India well. going more you also then on So hiring India, employee an progress. can maybe ask heard morale. congrats us and Mike, be I India? I as India guys just how the guys, an to supply Hi, doing

Glassdoor, On a reflect positioned XX%. you so workforce now. a we strong, back XX% of And care and folks. that a at continue started. of right We're and our all work-from-home take now around We're into coming above right is think to is balance to we work. between well employee take we're also look on I running where thanks started look nice can Brian much. morale I Most

But increasing option morale. changes So the they I making. giving think is we're folks that that look, like

India our I roughly think look Now, with population. is with Philippines What's is fantastic when a on, deal very being the job, proactive where about a India, India that going we've third situation. of that's and how actually I at to done

additional immediately on families. our we folks And went doubled secured for over vaccines gave getting We we benefits. supplies beds then and As our our colleagues. financial support working there our for now for and we're

do spot. of looks is, rest all a line you the rough What question, pretty when it's But the the attrition to Brian? was be So there bottom over morale high our your that, seems and good.

I you're I more mix? to the also too understand change India hiring think, in

I've to of when want that So over hard said And at the to started. over very an now the when for I again, that motivate that got was percentage and do reason employee is you've base. I it's here DXC contractors

the that And new driving is contractors it's we see you on strategy remove them to us That's strategy, we're put and work scale. want implementing. that that of where also and of our the also employees, the work consistent a flip area So coming that And board. down. to then some in combination to

versus And just targets DXC these think per know would confidence how you the a bat, original it. said, characterize level I probably first even ones follow targets your off to your started? you then to up, some targets? Mike, achieve just it these got long-term Got the you But guidance, when right set right you I of when you wasn't as se. was

confidence around ’XX, Yes, ’XX. confidence around strong strong

a lot As new people of you for can months. imagine, we've business had I've XX with look the that management I've studying team this it new brought. at been

confidence is high. So the

the congrats Great, transformation. on

Thanks, Brian.

Peller our from Research. line of Wolfe with have Darrin next We coming question the

open. is line Your

quarters, revisit just your on the around demand terms fulfilling I of coming probably several demand thank we're guys, just on you. following-up Brian's for And view ability engineering want the areas. book-to-bill of especially questions to your on from In Hey, those sort more in sophisticated supply strong context the the of ratios now seeing that pretty meet side. the last bookings. to

rates last you thinking have now color the levels of just quarters, it. or numbers a And on seeing the really utilization of numbers couple you're part specifically If about It you couple next of those helpful. us years? head versus in around be should would where can give as any attrition guidance

so what would this, people. I and morale, on why I Darrin, the with Okay, focused that's is say

our about So and when hence DXC key look talk the the place also the the work and our and I customers to on around colleagues thing talk new lot colleagues, of this I focusing initiatives. reason at colleagues about simpler some why the a make continue we stay, that we to the cost savings

always As engagement. it employee though, employees that's relates morale, to I to employee go back

Like people You It's can a what's and significantly increased you all numbers. said, what last lot do engagement if folks what need how what to only which over for see you take Glassdoor, can’t understand months. the also about has many us can it's hard comparably, inspire but actually the little huge. survey, by people are to our a the of Because we then I I employee increased on, engage to on not saying our XX tell even the to going get taking is in them. survey,

part of this. management join good inspiring say, calls, to team, who And go nugget So On be the nothing talent, reach a of our say proactive getting that's gone way will for give to more there's we've that. proactively get are out talent when folks the out that, reaching now have our want I hey, from is the you top other I to having want to would you I journey. to to

that quick I obviously Mike. that when and some directionally. with but as picture, on you're we on sequential showing directional That's there's color have bigger about basis book-to-bill been businesses especially question, position guess good on all a follow-up you a like presentations of now, good The points over seem portfolio a you year, think past just very the in data it. now, a

around just I’d high want about still think still business maybe again, guys. part of you is bit thoughts to on terms that there's little in are moving it be of your where Thanks curious overall portfolio there, to be what business level any some a So hear. you

and Okay, what hand you Darrin, and is, I said the I so have, I've like would tell over that think again. over we

And create we it. always value, from continue it, mentioned, we portfolio. subtract to definitely as think study an shareholder Ken we've we're to either will opportunity will if or the We add to going to look got at

biggest those before. do and One for And that things of something names we we've so and analytics, that about piece some of because scale never data and is -- Look is industry. called the get And is you in doesn't at we Darrin forth. talk over stuff cleansing data couple about. learning the wants that's analytics market have of it we that data is where and with talk can the the machine of the of But the cleansing. clean. half engineering of efforts that business, is to And AI that that much projects lot a curtailed, can about and a Lot do not what have we people impressive. things pretty we've talked got touch data

I progress. the think like hand we're again, So that have and making we good

you. right. job, All guys. Great. Nice Thank

Lisa with coming Moffett Ellis have the of line We Nathanson. from next our question

Your open. line is

stuff year year-on-year book-to-bill guys. months should declines follow-on we fiscal guiding think afternoon, as X.XXx good trailing then obviously the I now just still in this but on about out, a question still major the for a you called and the XX you're upcoming but revenue. to relation. had Hi, quarter. improvement noting book-to-bill is How Good that and revenue relationship bookings between growth,

relationship the revenue guess relationship, to on kind that or sort between think we backlog So the that in that What you. there refilled? Thank color time a can lag like growth? there's how you of about that means give do be I of needs book-to-bill some and to

Thanks. Lisa. Okay,

year one all, our guiding QX But minus of of yes, about is guide to minus for four. first two. the to think minus full our minus two guide, in So we're

board. on coming revenues said that So

closing team is revenue XX% away two I focus thing a before to us is that that it book-to-bill, very in that out minus ways new work. can And XX% two. is seen pretty this we've we're leadership not going I are to trajectory out is doing think X.X and with gap into renewals. Second very, why calling think in terms the never work anymore. called split My that, minus when I that that's good you that doing about our as revenue, of see and the market is That's from and one out specifically significant lost to we is minus show the ’XX call FY I job

to the and your talent just increasing of transformation then are more a Can and kind overall overall sort on a know deep simplification And good. transformation your different at cetera. and of question you like journey where of holistically related us you you've of lines aspects follow-on et just number transformation? Okay, I update transformation. organizational of highlighted accountability the layering on organizational

team built of So a number XX. see of on leadership the organizational transformation, all overall will them June first and the is out you

that on that brought instance, So I'm looking in positive people are HR that across generate the those with for we talent people to CIO, with running showcase running folks along board, the along forward business. because are and people help is driving going morale P&L, the that's are our the running our that delivery, to

filling to pretty what specific see say, about we're in your mentioned people our direct to management think the that that's layer is next my Darrin And was want to reports need now. back with question, team. now So, is to doing to us talent, join what I I we're doing where of the when underneath

join that's and Mike, that things in discussed got can want people One you we're momentum the think to And that now call this done hey, to showing I on on we've of early talent DXC. really positive attract something momentum. I market the that, the was,

forward going ’XX. come year new the I way to our seeing fiscal So in talent look to that's

you. thank Terrific,

next you, from Thank question we have line with Bergin the of our coming Bryan Cowen.

Your line is open.

afternoon, to good Hi, ask Thank margin you. guys. here question first. Wanted on

have So million largest here you the Can and talk the for color cost? $XXX on just ’XX, more completed for fiscal ’XX. still you opportunities goal your about around program provide you

year what continue last this look, cost levers we will So our see had you year. is, will that

So first is cost levers, the contractor the one conversions.

footprint. environmental also our that at look to helps continue our will we is, facilities with Second

we around, at is impacted operations. I the look the level And Third has fourth our our AI will that Vinod along Bryan on it of continue operations. the with is one, is refers How is, call inefficient corporate then what what organization. running product to to simplicity

what in automation our the So of do that's facilities. we

delivered million. I'll totally So out is on we just call again, what do And we $XXX the delivered X.X%.

we $X.X customers that's guide year you to net says colleagues, with much on it we're numbers. when making the be if you So as $X.X, next doing out how to we to our and just shouldn't that get investment our those and

that $XXX the was And year. of that the can just into comments, types work on little the bit for evolve away I more to then shaping Did built still be a portfolio was sense. there from? what level. wrote if in higher of anticipation you but an might you Make quantify a full sure dig down And ’XX backing is that there guide, here on potentially still million could not sort there you still

the I for here. so I'll was X, some stuff we color the to that say April Yes, The continue Bryan, $XXX to business give would provider principally at healthcare try that's, our software smaller look million that exited the you portfolio, year-over-year assets more as technology called well. maybe in we driving basis, a on Also, $X.X specifically, synergies the aren't integrated out noncore right, stack and into billion the business. aren't

some portfolio looking continuing we're you as color. holistically. the gives Mike that hopefully said, at And So

piece something use with think Certainly, just out our a business to in that of we that. it do do guidance want there's I I of that's what certainly move more you with than a anything as update we we'll you. kind business. our wouldn't if and do

Okay, you. understood. Thank

Thanks, Bryan.

line we have coming DeepDive Bourgeois next with Rod Equity. you, of from the our Thank question

is open. Your line

great. Okay,

share you crisis So full fiscal finished just to and first as the unsolicited CEO concerns, even you year of with Mike, during your had lot that the takeover COVID bid. dell year, everything from hey, a debt stuff

you've had your all to to time challenges. know So clients those get through also major

experience, outlook. your what that I you DXCs about financial are main So takeaways fiscal ’XX as what are in I want mean influencing to now your go-forward fundamental drivers output draw that ask

essentially, that also your turnaround to from I'd come. learn what you're ’XX? suggests fiscal seeing So, you that XXXX did more say guidance

get to drivers Thanks. on great the be your take it'd there. So overall

there five say are would I drivers. Rod. Thanks,

we've quite about, But going we've engage which the year, over first at is a and for when forward one out which focus done called will games bit I people. that's to look into That moving engaged And key help the what retaining special. now I ’XX. to thing the not So the our the last talked is about continuing from attract, us as fuel us future.

about anymore. on videos to June a about XX, to that. we talking all transformations and stack. and have the about the doing about them, finishing challenge talked the we're year meaning customer clients, up that the here accounts stacking talking are, moving talk year, up listen won't for you intimacy, We're The is me to We we've second one we're began lot customers,

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thanks. Alright,

else? anything Rod,

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guys. Thanks, it. Got

us call. with achieved confident and FY tell thank and join We're the also for operator, we to we FY Analyst everybody going all Again, on can festivities. your ’XX. that that's to And also you please families to want would and are day very call. you the close best continue pleased that XX I the team momentum with in ’XX. that June the hope the in I new you meet joining I to

today's concludes participating. conference you call. for Thank This

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