What changed in this filing

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Item 1. Business

2024-02-21 compared with 2023-02-22 · 109 added, 128 removed, 277 unchanged (46% of the section changed)

In this Form 10-K, unless the content otherwise dictates, "Conduent", the "Company", "we" or "our" mean Conduent Incorporated and its consolidated subsidiaries.

As a global technology-led business process solutions company, Conduent delivers mission-critical services and solutions on behalf of businesses and governments to create exceptional outcomes for our clients and the millions of people who count on them.

Through people, process, expertise, analytics and automation, our services and solutions create value by elevating customer experiences, increasing efficiencies and reducing costs.

Eighty percent of Fortune 100 companies and over 600 government and transportation agencies depend on us each day as their trusted partner to manage their business processes and end-user interactions.

As a pioneer in global business process outsourcing, we deliver deep and transformative expertise across a wide range of industries globally in both the commercial and public sectors.

Each day, Conduent's services and solutions interact in the lives of millions of people in many ways — from safer, more seamless commutes that reduce congestion to streamlined benefits enrollment, digital payments, customer experiences and government healthcare claims.

We deliver digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for our clients and the millions of people who count on them.

The Company leverages cloud computing, artificial intelligence ("AI"), machine learning, automation and advanced analytics to deliver mission-critical business process solutions.

Through a dedicated global team of associates, process expertise, and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs.

As a pioneer in global business process outsourcing, we deliver deep expertise across a wide range of industries globally in both the commercial and public sectors.

Each day, Conduent's solutions and services interact in the lives of millions of people in many ways — from safer, more seamless commutes that reduce congestion to streamlined benefits enrollment, digital payments, customer experiences and government healthcare claims.

Our commercial portfolio includes leading solutions in attractive growth markets, including customer experience management, business operations, healthcare and human capital solutions.

We are a leading provider of medical bill review.

In 2022, for example, we administered bill review for and repricing on approximately 28 million medical bills for over 3 million workers compensation claims in the U.S.

resulting in $20 billion of total bill reductions on behalf of our clients.

Our people, expertise and technology elevate experiences and outcomes every day across our commercial, government and transportation businesses, where we managed approximately 1.3 billion customer service interactions in 2022.

We serve a substantial portion of the public sector, providing market-leading transportation and government solutions such as smart mobility solutions that seamlessly connect travelers and digital benefit payments that constituents depend on every day.

Our people, expertise and technology elevate experiences and outcomes every day.

In 2023, we managed approximately 2.3 billion customer service interactions, captured and classified 5.4 billion documents, and supported millions of employees with HR services.

We serve a substantial portion of the public sector, providing market-leading transportation and government offerings such as smart mobility solutions that seamlessly connect travelers and digital benefit payments that constituents depend on every day.

Our transportation portfolio includes Road Usage Charging, Transit, Curbside Management and Public Safety solutions.

We process nearly 13 million tolling transactions every day while helping to reduce congestion and greenhouse emissions through all-electronic tolling and other technology solutions.

Our government portfolio includes digital payments, child support payments, government healthcare solutions and eligibility and engagement solutions.

Our systems reliably process 43% of all Supplemental Nutrition Assistance Program (SNAP) payments on behalf of government entities, helping to ensure efficient delivery of benefits to the most vulnerable populations.

Our government portfolio includes digital payments, child support payments, government healthcare and eligibility and enrollment solutions, helping to ensure efficient Medicaid healthcare claims processing and delivery of benefits to the most vulnerable populations.

In line with our strategic initiatives, as discussed in Part II, Item 8, Note 4 – Assets/Liabilities Held for Sale and Divestitures, we have signed a definitive agreement to sell our Curbside Management and Public Safety Solutions businesses.

Additionally, we have entered into a Custodial Transfer and Asset Purchase Agreement to transfer our BenefitWallet health savings account and medical savings account portfolio.

With approximately 59,000 associates globally as of December 31, 2023, we are dedicated to our clients' success.

Each day, our people and our technology-led solutions serve millions of end users on behalf of our clients.

Each day, our people and our digital business solutions and services serve millions of end users on behalf of our clients.

Of our global team, 41% is in North America with the remainder located primarily in our delivery centers in Asia Pacific, Latin America, the Caribbean, and Europe.

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Our Strategic Focus

Our goal is to be the technology-led business services partner of choice for businesses and governments globally.

Our aim is to be the technology-led business solutions partner of choice for businesses and governments globally.

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 them.

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• Sales Performance Optimization :

We continue to optimize sales training, processes and account management to strengthen client and prospect relationships.

We have also invested in a growth acceleration team focused on business development.

This has resulted in more selling opportunities both with new clients as well as greater share of wallet with existing clients.

In 2022, our add-on sales grew by 10% compared to 2021 and the number of our top 100 clients with multiple service lines increased from 73 to 90.

We continue to improve our responsiveness to clients while expanding our sales coverage, including in international markets.

We provide our sales team with regular training tailored specifically for their roles, while also streamlining processes and equipping them with modern tools to support their performance.

Our team’s talent and dedication has resulted in Conduent serving 46 states, a majority of the Fortune 100, and other leading companies, including:

We continue to optimize sales training, processes and account management to strengthen client and prospect relationships to gain more selling opportunities both with new clients as well as greater share of wallet with existing clients, expanding new logo sales significantly year over year including a large transportation win in Australia.

Our team’s talent and dedication has resulted in Conduent serving 47 states, many of the Fortune 100 companies, and other leading companies, including:

• 9 of the top 10 U.S.

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• Offering Development :

We continue to augment our portfolio of services and solutions with innovative technology capabilities, including cloud, data analytics, automation tools and machine learning capabilities to create differentiated, high-value solutions for our clients and to enable greater penetration of attractive market segments.

We continue to augment our portfolio of services and solutions with innovative technology capabilities, including cloud, data analytics, automation tools, AI and machine learning capabilities to create differentiated, high-value solutions for our clients and to enable greater penetration of attractive market segments.

In 2023, in response to our continued commitment to quality and efficiency, our clients have renewed contracts with us and given us more business in adjacent service lines, and we’ve gained new clients.

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• Automation :

We will continue to invest in embedding intelligent process automation into existing operations, including automated document management and customer experience.

We will continue to invest in embedding intelligent process automation and artificial intelligence into existing operations, including automated document management and customer experience.

Our automation tools increase productivity through advanced data extraction and handling of structured and unstructured data, improve workflow efficiency through business rules and task automation and increase operational accuracy through predictive analytics.

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We continue to drive efficiencies by delivering common processes with a shared services model that enables economies of scale while also creating more accountability for client performance.

We have consistently improved our service level agreement (SLA) performance.

We drive progress through continuous process improvement, and capitalizing on a range of staffing models, including flexible work from home and hybrid work, and by optimizing our geographic footprint.

We continue to respond with agility to clients’ shifting needs and our Net Promoter Score (NPS) has increased by 30 points over the past three years.

We continue to respond with agility to clients’ shifting needs and our Net Promoter Score ("NPS") has increased by nearly 30 points since becoming Conduent in 2017.

We measure success in Efficiency through associate retention and adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") margin, among other metrics.

Our clients depend on stable, high-quality delivery of services.

Our clients depend on stable, high-quality service delivery.

We continue to drive progress by increasing system uptime, improving operational stability, and creating client confidence and satisfaction by focusing on the following strategies:

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We continue to invest in artificial intelligence and machine learning technologies to proactively monitor and prevent incidents.

Through our state-of-the-art global IT command center in Sandy, Utah - which delivers seamless and reliable service to our global clients - we continued to increase system uptime and availability in 2023.

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Through our state-of-the-art global IT command center in Sandy, Utah - which delivers seamless and reliable service to our global clients - we continued to increase uptime in 2022 and we believe we will continue to do so in 2023.

• Data Center Optimization :

We have systematically consolidated the majority of our technology infrastructure into two state-of-the-art data centers that has resulted in increased processing speeds, redundancy and stability, improving performance for our clients.

We have systematically consolidated the majority of our technology infrastructure leading to increased processing speeds, redundancy and stability, and improved performance for our clients.

We expect to complete this work in 2024.

• Improve End User Experience :

We are enhancing both user interfaces and user experiences across our offerings by expanding self-service tools and mobile apps, and by leveraging deeper user insights through analytics.

Our focus on quality has resulted in continued client confidence and satisfaction.

We have been named GM Supplier of the Year and received the Toyota Financial Services Supplier Excellence Award, both for the second consecutive year.

We measure “Quality” by service level agreement performance, technology incident rates, and client satisfaction.

Our focus on quality has resulted in continued client confidence and satisfaction which is reflected in our Net Promoter Score improvement.

We measure “Quality” by service level agreement performance, system availability, technology incident rates, and client satisfaction.

Investment Strategy :

To achieve our business goals, we have a disciplined investment strategy focused on allocating capital to meet the needs of our clients while supporting our growth strategies.

Our balanced investment approach falls into three broad categories:

We maintain a balanced and disciplined approach to capital allocation including debt repayment, shareholder returns and internal investments.

Our internal investments to support our business goals and client needs fall into three broad categories:

• Opportunities to optimize, where we have significant scale and where we believe that with process improvements, automation, and an investment into the current offerings, we can improve the end-user experience, reduce our cost of delivery, expand our margins, and further capture additional share.

• Opportunities to enhance, where we have strong client relationships, a long history of expertise in that market, and legacy technology that needs to be refreshed or modernized.

• Opportunities to expand, where we believe we can compete successfully, and we see the return on investment as more significant than the other businesses.

• Opportunities to expand, where we believe we can compete successfully, and we see the return on investment as more significant than in other businesses.

These businesses, augmented with new capabilities and geographic expansion, and with the opportunity to be supplemented by modest acquisitions, will address market dynamics and provide additional growth opportunities.

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Consumers and constituents of the businesses and governments we serve are demanding the efficiency and personalization of modern digital experiences.

Our technology-led business process solutions drive performance and value for both businesses and governments while providing an exceptional customer experience for their end users.

Our digital business process solutions and services drive performance and value for both businesses and governments while providing exceptional customer experiences for their end users.

We have developed a strong leadership position in the markets that we operate in, with increased recognition across multiple stakeholders, as demonstrated by recognition from industry resources.

• Industry Analyst Accolades:

• A leader in Healthcare:

Everest Group;

• A leader in HR Services:

• A leader in Customer Experience Services:

ISG, NelsonHall, Everest Group.

• NelsonHall Next Generation Benefits Administration NEAT – Leader

(Focus Areas:

Overall, Digital, H&W, Marketplace and TBO)

• ISG Provider Lens Contact Center - Customer Experience Services US 2023 – Leader

(Focus Areas:

AI & Analytics, Digital Operations, Social Media Services, Work from Home)

• ISG Provider Lens Finance and Accounting Outsourcing Services Global 2023 - Rising Star in Procure to Pay (P2P)

• Everest Group Healthcare Payer Operations PEAK Matrix Assessment 2023 – Leader

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• Market Position:

• Everest Group Top 50 BPS Providers, #8;

• Gartner Market Share:

BPO, Worldwide, #11;

• ISG’s Top 15 Service & Technology Provider Standouts – Managed Services, Americas - The Building 15.

• Everest Group BPS Top 15 2023 - #10

• Gartner Market Share IT Services 2023 - BPO, Worldwide - #11

We organize, manage and report our business through three reportable segments:

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Our Government segment provides government-centric business process services to U.S.

federal, state, local and foreign governments for public assistance, health services, program administration, transaction processing and payment services.

federal, state, local and foreign governments for public assistance, healthcare programs and administration, transaction processing and payment services.

Our solutions in this segment help governments respond to changing rules for eligibility and increasing citizen expectations.

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Our Transportation segment provides systems, support, and revenue-generating solutions to government transportation agency clients.

We deliver mission-critical public safety, mobility and digital payment solutions that streamline operations, increase revenue and reduce congestion while creating safe, seamless travel experiences for consumers and positively impacting the environment.

Transportation segment revenue for 2023 was $696 million, representing 18.7% of our total revenues.

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Through omni-channel communications, automation, and analytics, as well as labor efficiencies, we help our clients to reduce costs, enable scale and drive revenue growth and efficiencies.

We serve marquee clients across multiple sectors including financial services, health and life sciences, manufacturing and automotive, aerospace and defense, consumer goods, retail, technology and telecom, travel, transportation, and hospitality sectors.

We serve marquee clients across multiple sectors including financial services, health and life sciences, logistics, retail, technology and telecom, travel, and hospitality sectors.

The CXM business generally generates income on a per call, per agent, or per percentage of sales made basis.

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• In our BOS business, we help our clients transform business processes and drive efficiency, automation and scale across essential business functions.

We streamline mission-critical operations through our deep industry experience, understanding of our clients’ operations and the latest technology solutions, to reduce costs, improve security and accuracy and enable revenue growth, while enhancing the end-user experience.

We streamline mission-critical operations through our deep industry experience, understanding of our clients’ operations and the latest technology solutions, to reduce costs, improve security, performance and accuracy and enable revenue growth, while enhancing the end-user experience.

Our portfolio of solutions spans automated document and data management, payments processing, finance, accounting and procurement, and financial industry solutions.

We generate revenue in a variety of ways within this business, including per item handled, time and

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materials, and per service such as postage, web portal hosting or data storage.

We generate revenue in a variety of ways within this business, including per item handled, time and materials, and per service such as postage, web portal hosting or data storage.

Our pricing can also be based on achieving specific outcomes for services rendered.

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• Healthcare Claims and Administration Solutions

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• We provide services to support our clients' employees at all stages of their employment from on-boarding through retirement.

Our solutions span Health Savings Account Solutions, Benefits Administration Solutions, Human Resources (HR) and Payroll Solutions, and Learning Solutions.

Our solutions span Benefits Administration Solutions, Human Resources ("HR") and Payroll Solutions, Health Savings Accounts Solutions and Learning Solutions.

On behalf of global organizations and governments, we deliver mission-critical, technology-led HR services and solutions that improve business processes across the employee journey to maximize business performance, while increasing employee satisfaction, engagement, and overall well-being.

These solutions help empower more than 11 million employees and span health, benefits, payroll, onboarding and learning administration, annual enrollment, wealth and retirement, HR, talent, and workforce management.

These solutions help empower millions of employees and span health, benefits, payroll, onboarding and learning administration, annual enrollment, wealth and retirement, HR, talent, and workforce management.

Depending on the solution, we generate revenue in a variety of ways.

For our Health Savings Account (HSA) Solutions business, we generate revenue via account fees, interchange fees on debit cards, and interest-related revenues as a result of balance fees from depository banks that hold cash deposited into the Savings Account business.

• As of December 31, 2022, we managed approximately 900,000 active HSAs with $2.7 billion of assets under management.

In addition to managing HSAs, we manage Flexible Savings Accounts and other Notional Accounts on behalf of corporations providing incremental benefits to their employees.

• Within our Benefits Solutions, we principally generate revenue based on the number of employees and retirees we support, as well as transactions generated by client life events such as qualified domestic relations orders, Consolidated Omnibus Budget Reconciliation Act ("COBRA") and Affordable Care Act ("ACA") administration, which are charged on a per transaction basis.

Within our HR and Payroll Solutions, we generate revenue principally per client’s employee per period (month / year) pricing, with banding to address periodic variations in client employee headcount.

Within our HR and Payroll Solutions, we generate revenue principally per client’s employee per period (month / year) pricing, with tiers to address periodic variations in client employee headcount.

Within our Learning Solutions, we generate revenue principally by transaction-based pricing per unit of production along with fixed monthly governance fees.

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• Government Healthcare Solutions

• We provide mission-critical program administration solutions for government healthcare programs in 46 states, the District of Columbia, and a federal program (U.S.

Department of Labor), which includes nearly 119 million recipients supported.

Our services include a range of innovative solutions such as Medicaid management, provider services, Medicaid business intelligence, pharmacy benefits management, eligibility and enrollment support, customer contact services, application processing, premium billing, and case management solutions.

Our Medicaid Suite is a modular SaaS solution for

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state Medicaid agencies to transform from a legacy Medicaid Management Information System (MMIS) to a digital, interoperable, and scalable Medicaid Enterprise System.

• We provide mission-critical program administration solutions for government healthcare programs with a range of innovative solutions such as Medicaid management, provider services, Medicaid business intelligence, pharmacy benefits management, eligibility and enrollment support, customer contact services, application processing, premium billing, and case management solutions.

In 2023 alone, we processed 562 million claims.

Our cloud-based Medicaid Suite is a modular software as a service ("SaaS") solution for state Medicaid agencies to transform from a legacy Medicaid Management Information System ("MMIS") to a digital, interoperable, and scalable Medicaid Enterprise System.

Our case management solutions provide disease surveillance and outbreak management to make it easier to monitor, report and protect the health of communities globally.

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These solutions help states, counties, and countries optimize their costs by streamlining access to care and improving patient health outcomes through population health management, while helping families in need by improving beneficiary support.

Within the Government Healthcare Solutions business, our revenue is primarily fixed fee or variable price based on a per call, per interaction or per member basis.

Within the Government

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Healthcare Solutions business, our revenue is primarily fixed fee or variable price based on a per call, per interaction or per member basis.

• Government Service Solutions

• With $99 billion disbursed annually, we are a leader in government payment disbursements for federally sponsored programs including Supplemental Nutrition Assistance Program ("SNAP"), formerly known as food stamps, and Women, Infant and Children ("WIC") as well as government-initiated cash disbursements such as child support and Unemployment Insurance ("UI").

We deliver electronic payments for government services in 36 states, 23 Electronic Benefit Transfer (EBT) programs, 13 EBT for WIC programs and 6 Electronic Child Care programs.

In our SNAP payments solution, we generate revenue based on the number of cases or number of card holders.

Within our UI payment solution, we generate revenue based on interchange fees and spending on cards as a percentage of transactions.

We deliver electronic payments for government services in 37 states, including 24 Electronic Benefit Transfer ("EBT") programs, 13 EBT for WIC programs and 7 Electronic Child Care programs.

In our closed-loop payments solution, we generate revenue based on the number of cases or number of card holders.

Within our open-loop payments solution, we generate revenue based on interchange fees and spending on cards as a percentage of transactions.

• We also offer a broad set of child support services predominately to State Disbursement Units ("SDUs"), including processing and distributing payments, child support payment cards, childcare credentialing, and case management, among others, to help states comply with federal standards.

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Transportation

On behalf of government agencies and transportation authorities around the world, we deliver solutions serving toll and fare collection, mobility and digital payments, violation and citation management, photo enforcement and interoperability that help streamline operations and increase revenue.

On behalf of government agencies and transportation authorities around the world, we deliver solutions serving toll and fare collection, mobility and digital payments, violation and citation management, and photo enforcement that help streamline operations and increase revenue.

With an expanded focus on sustainability and enhancing the quality of life for citizens and communities around the world, our solutions help reduce congestion and greenhouse emissions, enhance public safety, and create seamless travel experiences for consumers throughout transportation ecosystems.

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The transaction-based component can be per account per month, per notice mailed, per active account, per violations fees received, or per image-based transaction.

Conduent manages 48% of the transactions of the top 10 U.S.

tolling agencies.

• Transit Solutions

• For train, bus, subway, metro and other transit travelers, we help make journeys more personalized and convenient while increasing capacity and profitability for authorities and agencies.

• For train, bus, subway, metro and other transit travelers, we help make journeys more personalized and convenient while increasing fare collection for authorities and agencies.

We combine fare collection and intelligent mobility to provide clients with the added efficiency of a single point of management for all transit solutions.

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• We deliver intelligent curbside management systems that simplify parking programs and deliver convenient and hassle-free experiences for drivers.

Our curbside solutions include citation and permit

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administration, parking enforcement, and curbside demand management.

In 2022, we processed over 8.7 million payments and collected nearly $757 million for citations and delinquent revenue collections.

We generate revenue based on violations issued, payment processing transactions, collections activities or a fixed fee for our services.

Our curbside solutions include citation and permit administration, parking enforcement, and curbside demand management.

We generate revenue based on violations issued, payment processing transactions, collections activities or through a fixed fee for our services.

• Public Safety Solutions

• Public safety is a priority in every community, especially as budgets shrink and populations grow.

We provide data analytics, automated photo enforcement and other public safety solutions to make streets and communities safer.

We provide data analytics, automated photo enforcement and other public safety solutions to make streets

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and communities safer.

Our photo enforcement systems include red light, fixed and mobile speed, school bus, work zone, school zone, bus lane, high occupancy and other enforcement systems.

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These factors, along with clients and their customers demanding more personalized, seamless, and secure solutions, are collectively driving the ongoing shift to next-generation solutions and services.

Through our portfolio of technology-led services and solutions, we have reached significant scale in our interactions including:

Through our portfolio of digital business solutions and services, we have reached significant scale in our interactions including:

• Healthcare:

healthcare spending is expected to remain largely unchanged as a percentage of GDP (19.6% and 19.7% of GDP in 2030 and 2020, respectively) and is projected to grow at an average rate of 5.1% per year between 2021-2030.

healthcare spending is expected to increase slightly as a percentage of GDP (from 18.3% of GDP in 2021 to 19.6% in 2031) and is projected to grow at an average rate of 5.4% per year between 2022-2031.

We are widely recognized by industry analysts as a leader in healthcare payer operations, serving 9 of the top 10 U.S.

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Department of Labor), which includes nearly 119 million recipients supported.

Conduent’s healthcare capabilities have been recognized by ISG, HfS Research and Everest Group.

Conduent’s healthcare capabilities have been recognized by NelsonHall and Everest Group.

• Transportation:

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As a result, optimized transportation systems are becoming critical to increase efficiency while maintaining strict safety requirements.

Electronic toll collection, public transit and parking represent key growth drivers as governments at all levels increasingly focus on transportation infrastructure.

We are an award-winning innovator in parking management.

Electronic toll collection and public transit represent key growth drivers as governments at all levels increasingly focus on transportation infrastructure.

• Business Operations Solutions:

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Global delivery expertise:

Our scale and global delivery capabilities enable us to deliver our proprietary technology and differentiated service offerings expertly to clients around the world.

Our scale and global delivery capabilities enable us to deliver our proprietary technology and differentiated service offerings seamlessly to clients around the world.

We have operations in 26 countries including India, the Philippines, Jamaica, Guatemala, Mexico, Romania, the United Kingdom and several locations within the United States, providing our customers the option for "onshore", "nearshore" or "offshore" outsourced business process services.

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Differentiated technology-led suite of multi-industry solutions:

Through dedicated people, process expertise and technology, such as analytics and automation, Conduent services and solutions create value for our clients by

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creating efficiencies, improving experiences, reducing costs and enabling revenue growth while better serving millions of end customers that depend on us.

Through dedicated people, process expertise and technology, such as analytics and automation, Conduent solutions and services create value for our clients by creating efficiencies, improving experiences, reducing costs and enabling revenue growth while better serving millions of end customers that depend on us.

We deliver performance by optimizing processes to be more efficient, flexible and secure.

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We enhance the customer experience by improving experiences, engagement and loyalty of end users.

In fact, the number of our top 100 commercial clients who utilize Conduent for multiple service lines increased from 73 to 90 from 2021 to 2022.

Recurring revenue model supported by a loyal, diverse client base:

We have a broad and diverse base of clients across geographies and industries, including 80% of the Fortune 100 companies, many Fortune 1000 companies, midsize businesses and governmental entities.

Our clients are increasingly satisfied as evidenced by our NPS that has increased by 30 points over the past three years.

We have a broad and diverse base of clients across geographies and industries, including many Fortune 100 companies, midsize businesses and governmental entities.

Our clients are increasingly satisfied as evidenced by our NPS that has increased by nearly 30 points since becoming Conduent in 2017.

Our close client relationships and successful client execution support our stable recurring revenue model and high renewal rates.

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Although we encounter competition in all areas of our portfolio, we are a leader in many categories.

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• Large multinational service providers such as Accenture, Cognizant, TTEC and Teleperformance;

• Traditional business process outsourcing companies such as Genpact and EXL Services;

• Traditional business process outsourcing companies such as Genpact, Wipro and EXL Services;

• Human resource, payroll processing and human capital management providers such as Alight and Willis Towers Watson;

• Healthcare-focused IT and service solutions providers such as Gainwell, Optum and Maximus;

• HSA administrators such as Health Equity;

Federal-focused government services providers such as Leidos;

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In addition, any of our proprietary rights could be challenged, invalidated, or circumvented, or may not provide significant competitive advantages.

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Our business relies on software provided, to an approximately equal extent, by both internal development and external sourcing to deliver our services.

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With respect to externally sourced software, we rely on contracts assuring our continued access for our business usage.

In the United States, we own 57 registered trademarks reflecting the many businesses we participate in.

In the United States, we own 55 registered trademarks, with two pending, reflecting the many businesses we participate in.

These trademarks may have a perpetual life, subject to renewal every 10 years and may be subject to cancellation or invalidation based on certain use requirements and third-party challenges, or on other grounds.

We vigorously enforce and protect our trademarks.

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People and Culture

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Our three reportable segments, Commercial, Government and Transportation, house most of our associates with approximately 42,000, 5,000 and 4,000 associates, respectively.

Conduent Diversity & Inclusion (D&I)

We draw strength from the diversity of our global workforce, and we believe that creating an inclusive culture where all associates can bring their authentic selves to work creates value for all our stakeholders.

Our eight Employee Impact Groups (EIGs) continue to play a vital role in creating an environment of belonging and inclusion through year-round activities that advance culture and professional development, create a sense of community, and impact business outcomes.

As part of our focus on D&I awareness and education, in 2022, we delivered extensive training on "inclusive leadership" and hosted panel discussions with members of our Board of Directors on a range of D&I topics.

We continue to advance our efforts towards embedding D&I in our talent management and recruiting practices and are proud to have received several global workplace diversity awards, including being recognized as a Top Employer for LGBT+ inclusion in India’s Workplace Equality Index (IWEI) 2022, a Best Place to Work for Disability Inclusion by the American Association of People with Disabilities and Disability:IN, and being named to Newsweek’s list of Top 100 Most Loved Workplaces.

Conduent Diversity, Equity & Inclusion ("DE&I")

At Conduent, we work to build a culture where individuality is noticed and valued, and associates feel like they belong and can bring their authentic selves to work.

We’re on a journey to create an equitable and inclusive workplace where everyone, regardless of their differences, has an equal opportunity to thrive, do work that fulfills them, and contribute their strengths.

This commitment is essential to our business strategy, fuels our work for clients, and carries forward to their millions of end-users who interact with us every day.

Within our One Team, One Mission culture, diversity makes us stronger.

Our three DE&I strategic pillars to Enrich Diversity, Elevate Equity, and Empower Inclusion provide focus for our annual priorities and initiatives.

Our eight Employee Impact Groups ("EIGs") play a vital role in creating an environment of belonging and inclusion through year-round activities that advance culture and professional development, create a sense of community, and impact business outcomes.

As part of our focus on DE&I awareness and education in 2023, we delivered extensive training on "inclusive leadership" and hosted panel discussions with our leadership team members on a range of DE&I topics.

We continue to advance our efforts towards embedding DE&I in our talent management and recruiting practices and are proud to have received several global and regional workplace culture and diversity awards, including:

• Top 100 Global Most Loved Workplaces (Newsweek:

• Most Loved Workplaces in America (Newsweek:

• America’s Best 500 Employers for Diversity (Forbes:

2023, 2022, 2021)

• Corporate Equality Index top ranking (Human Rights Campaign:

• Top Employer for LGBT+ Inclusion in India (IWEI:

• LGBTQ+ Best Places to Work in Mexico (Human Rights Campaign Equidad MX:

• Best Place to Work for Disability Inclusion (Disability Equality Index:

• Best for Vets Employers (Military Times:

• ERS Silver Award (Armed Forces Covenant:

Employee Learning and Development

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In addition to our digital platforms, employees are also provided job-specific technical training when they are onboarded and during their professional journey as required.

Our learning platforms are widely utilized with about 2.7 million learning assets completed in 2022 and have great learning effectiveness scores for satisfaction, skill improvement and application of learning on the job.

Furthermore, we launched a new, blended learning and development program for people managers in 2023.

Our learning platforms are widely utilized with about 2 million learning assets completed in 2023 and have great learning effectiveness scores for satisfaction, skill improvement and on the job practical application.

We also ensure that our associates complete regulatory and compliance training on topics required based on their role and geography.

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Associate Engagement

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These touchpoints include both external recognition surveys as well as feedback gathered through internal pulse surveys, exit surveys, and our internal social platform used for open and transparent communications.

In 2022, Conduent was recognized among Newsweek’s Top 100 Most Loved Workplaces.

In 2023, Conduent was recognized among Newsweek’s Top 100 Global Most Loved Workplaces.

This recognition was based largely on direct feedback gathered from our associates indicating a strong "emotional connection" between associates and our Company.

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continuously monitor our rankings and feedback from current associates on review sites such as Comparably.

We also continuously monitor our rankings and feedback from current associates on review sites such as Comparably.

In 2023 our year-over-year Comparably scores held steady, with our overall culture score in the top 10% of similar sized companies, and love of team, challenging work, and flexibility to do remote work cited among the positives.

Awards and Recognition

During 2022, Conduent has been honored to receive several prestigious awards related to our culture, including:

• Being recognized as a Top Employer for LGBT+ Inclusion in the India Workplace Equality Index (IWEI) 2022;

• Being named to Newsweek's 2022 Top 100 Most Loved Workplaces;

• Being recognized among Comparably's list of 2022 Best CEOs for Women;

• Being recognized as a Best Place to Work for Disability Inclusion based on our Disability Equality Index score May 2022;

• Being named to Forbes' America's Best 500 Employers for Diversity 2022.

Corporate Ethics

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Our directors must act in accordance with our Code of Business Conduct and Ethics for Members of the Board;

our principal executive officer, principal financial officer, and principal accounting officer, among others, must act in accordance with our Finance Code of Conduct;

our principal executive officer and principal financial and accounting officer, among others, must act in accordance with our Finance Code of Conduct;

and all of our executives and employees must act in accordance with our Code of Business Conduct.

10 unchanged sentences

Our Corporate Social Responsibility Report can also be found in the Investors section of our website.

CNDT 2022 Annual Report

The SEC maintains an internet address (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

The content on any website referred to in this Form 10-K is not incorporated by reference in this Form 10-K unless expressly noted.

CNDT 2023 Annual Report

Information about our Executive Officers

3 unchanged sentences

Clifford Skelton* 68 President and Chief Executive Officer 2019 2019

Louis Keyes 55 Executive Vice President, Transportation Solutions 2022 2020

Mark King 57 Executive Vice President, Government Solutions 2022 2022

Louis Keyes 56 Executive Vice President, Chief Revenue Officer 2023 2020

Randall King 58 Executive Vice President, Commercial Solutions 2022 2022

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Each of the officers named above has been an officer or an executive of Conduent or its subsidiaries for less than five years.

As of February 22, 2023, apart from executive officers Mark King and Randall King, who are brothers, there are no family relationships among any of the executive officers named above and any of our directors.

As of February 21, 2024, there are no family relationships among any of the executive officers named above and any of our directors.

Skelton was appointed Chief Operating Officer of Conduent in June 2019, Chief Executive Officer of Conduent in August 2019 and President of Conduent in May 2021.

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Keyes joined Conduent as Global Head of Sales in September 2019.

He was appointed Executive Vice President, Chief Revenue Officer in December 2020 and appointed Executive Vice President, Transportation Solutions in August 2022.

He was appointed Executive Vice President, Chief Revenue Officer in December 2020, appointed Executive Vice President, Transportation Solutions in August 2022 and again appointed to Executive Vice President, Chief Revenue Officer in December 2023.

Prior to joining Conduent, he served as Executive Vice President, Chief Sales Officer at York Risk Services from October 2017 to September 2019.

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Keyes earned his Bachelor of Arts degree from the University of Texas at Dallas.

Mark King joined Conduent in October of 2020 as Head of Government Solutions.

He was appointed Executive Vice President, Government Solutions in August 2022.

King has end-to-end responsibility over our portfolio of government solutions helping agencies across the U.S.

transform their operations, better serve constituents, and create more satisfying outcomes for people and communities served.

Prior to joining Conduent, Mr.

King was Head of Output Solutions at Fiserv where he was responsible for all aspects of the business, including product and account management, technology, operations, and financial performance.

King also served as Senior Vice President at Bank of America between 2001 and 2013.

King earned his Bachelor of Arts in Economics at University of North Carolina at Greensboro.

CNDT 2022 Annual Report

Randall King joined Conduent in May 2020 as Global Head, End User Experience.

King joined Conduent in May 2020 as Global Head, End User Experience.

He was appointed Executive Vice President, Commercial Solutions in August 2022.

King has responsibility for our commercial solutions portfolio, including Customer Experience Management, Document Management/Automation and Finance, Accounting and Procurement offerings as well as Commercial Healthcare, Human Resources, Learning, Casualty Claims Solutions and Legal, Compliance and Analytics.

Prior to joining Conduent he worked for Bank of America, where he served as Chief Operating Officer for Consumer and Wealth Management, as part of the bank’s Global Business Services organization.

King has responsibility for our commercial solutions portfolio.

Prior to joining Conduent he worked for Bank of America, where he served as Senior Vice President for Consumer and Wealth Management, as part of the bank’s Global Business Services organization.

King earned his Bachelor of Science degree in Economics at North Carolina State University and completed the Operations Leadership Program at the University of Michigan’s Stephen M.

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Krawitz began his career at Fried Frank and earned his Bachelor of Arts in Economics and in Government from Cornell University and his Juris Doctor from Harvard Law School.

CNDT 2023 Annual Report

Prout joined Conduent as Head of Information Technology in June of 2019.

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Wood has served as the Chief Financial Officer of Conduent since June 2021.

He served in his previous role as the Company’s Corporate Controller from August 2020 until June 2021 and was designated as its Principal Accounting Officer effective December 2020.

He served in his previous role as Conduent’s Corporate Controller from August 2020 until June 2021 and was designated as its Principal Accounting Officer effective December 2020.

Prior to joining Conduent, Mr.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business