Our Transformation Journey delivers strong performance in FY22

To the shareholders of DXC Technology,

I hope you and your families are doing well.

I’d like to thank our DXC customers and colleagues for the trust they have placed in us. As we continue on our transformation journey, we’re proud of the performance the company has delivered.

I am pleased with what we accomplished in fiscal year 2022. Both quantitatively and qualitatively, it is clear that DXC is now in a dramatically better place.

• We narrowed the total organic revenue decline by 620 basis points.
• Our growth strategy has two parts: consistently grow Global Business Services (GBS) and shrink the negative declines in Global Infrastructure Services (GIS). We have achieved the first part of our strategy by growing GBS in every quarter in fiscal year 2022. While we did shrink the organic revenue declines in GIS, we have initiatives and programs in place to ensure we continue to improve in FY23.
• Our adjusted EBIT margin increased 230 basis points, and our non-GAAP diluted EPS was up 44%.
• The highlight of the year was our free cash flow performance. We delivered a $1.4 billion improvement in free cash flow compared to fiscal year 2021. Our free cash flow reached $743 million. 

Fiscal year 2022 financial performance is a clear indication that we have built a team that can execute.

Our work on the five steps of our transformation journey also progressed over the last year.

1. The first step is to inspire and take care of our colleagues, which was highlighted by how well we supported our people through the COVID-19 pandemic and the conflict created by Russia’s invasion of Ukraine. 
2. Concerning our customers, we continued to increase our NPS score, which is now at 31, above the industry benchmark of 20-30. 
3. We made good progress expanding margins, driving out costs across DXC and reshaping our portfolio by divesting businesses that did not fit our strategy. Our business optimization activities will accelerate for the GIS business in fiscal year 2023.
4. The fourth step is to seize the market, where our book-to-bill numbers continue to show that we can win in the IT Industry. Our trailing 12-month book-to-bill of 1.11 is a great result which has helped grow organic revenues for GBS and narrow the declines for GIS. 
5. And finally, in terms of putting DXC on a firmer financial foundation, CFO Ken Sharp, and the team he has built, did a great job of executing on several important initiatives: improving our free cash flow, refinancing our debt with lower fixed rate interest costs, remediating the material weakness and improving our financial disclosures and transparency. With all of these actions, we now have a stronger financial position. 

It’s clear that DXC is in a far better place than it was two and a half years ago, and I am excited to embark on fiscal year 2023. My leadership team and I have clarity on the actions we need to accomplish, and we are clear-eyed on our portfolio and how to improve its trajectory. We fully expect our momentum to continue and to deliver on our goals over the long term.

Thank you all, shareholders, customers, and colleagues alike, for your trust and commitment to DXC.