Lexmark’s continuous journey to

Global Business Services – GBS

Cebu, May 2019

Bill Santillan

Multi-function, captive SSC

WW back & front office

Focus on:

❑ High value and transactional

❑ English, Asian languages

❑ 24 x 5 shift

Multi-function, captive SSC

EMEA back- and front office

Focus on:

❑ High value add / non transactional

❑ 9 European languages

❑ 8 x 5 shift

Lexmark’s Competence Centers landscape as of 2019

2

© 2015 Lexmark International, Inc. All rights reserved.

Lexmark, Global HQ

Lexington, KY

EMEA HQ

Geneva, CH

Competence Center

Budapest, HU

Competence Center

Cebu, PH

Competence Center

Montevideo, UY

Global E2E

Process Focus

GPL Governance

Empower

GBS Employees

Functional

Governance

Cost Savings

mainly

Independent

Sites

The Journey to Global Business Services

LEXMARK CONFIDENTIAL 3

Cebu SSC2006

Argentina SSC

Budapest SSC2008

2007

Geo

Focused

Cebu

Competence

Center

(CCC)

Budapest

Competence

Center

(BCC)

Remote

GBS

Employees

Agility

Scalability

Improve Customer

Satisfaction

Process & Cost

Efficiency

Talent growth

& stability

Global Business Services

May 2018

Building Foundations for Future Growth

Organization

Functional

Governance

Cost Savings

mainly

Independent

Sites

The Journey to Global Business Services

LEXMARK CONFIDENTIAL 4

Cebu SSC2006

Argentina SSC

Budapest SSC2008

2007

Geo

Focused

Functional Silos

Cebu Budapest

Function Aligned Activities Function Aligned Activities

Functional

Governance

Cost Savings

mainly

Independent

Sites

The Journey to Global Business Services

LEXMARK CONFIDENTIAL 5

Cebu SSC2006

Argentina SSC

Budapest SSC2008

2007

Geo

Focused

Global Business Services

May 2018

Building Foundations for Future Growth

Focus on both efficiency AND effectiveness

Build a strong operating model foundation for future

Implement at a measured pace

Focus on driving change to adopt new ways of working

Invest in talent

Act global

Treat GBS like a strategic asset

GBS Vision and Mission

6

To provide Lexmark with global, innovative,

agile, and customer-centric business

processes that efficiently drive profitable

growth.

To be a leading global business services

organization providing advanced expertise,

empowering all business units to

overachieve their objectives.

Vision Mission

LEXMARK CONFIDENTIAL

Global E2E

Process Focus

GPL Governance

Empower

GBS Employees

Functional

Governance

Cost Savings

mainly

Independent

Sites

The Journey to Global Business Services

LEXMARK CONFIDENTIAL 7

Cebu SSC2006

Argentina SSC

Budapest SSC2008

2007

Geo

Focused

Global Business Services

May 2018

Building Foundations for Future Growth

Organization

The Journey to Global Business Services

LEXMARK CONFIDENTIAL 8

Customers – Business Functions

IT : critical enabling function to 'power' GBS

Global Business Service

Organization

Common infrastructure

(e.g., governance, SLAs, systems, HR)

Order to cash

Source to Pay

Record to Report

Hire to Retire

Lead to Contract

Call to Resolution

End-to-End

processes

Select Function Specific Activities

Functional activities

(e.g. Supply Chain, Marketing, HR, Finance)

GBS enables strong focus on E2E process

with clear alignment and partnership with

functions to drive efficiencies

Agility

Scalability

Improve Customer

Satisfaction

Process & Cost

Efficiency

Talent growth

& stability

Global E2E

Process Focus

GPL Governance

Empower

GBS Employees

Functional

Governance

Cost Savings

mainly

Independent

Sites

The Journey to Global Business Services

LEXMARK CONFIDENTIAL 9

Cebu SSC2006

Argentina SSC

Budapest SSC2008

2007

Geo

Focused

Cebu

Competence

Center

(CCC)

Budapest

Competence

Center

(BCC)

Remote

GBS

Employees

Agility

Scalability

Improve Customer

Satisfaction

Process & Cost

Efficiency

Talent growth

& stability

Global Business Services

May 2018

Building Foundations for Future Growth

Organization

What’s next

LEXMARK CONFIDENTIAL 10

Expand knowledge based activities

and intelligent automation

Simplification

Optimization

Consolidation

Harmonization

Final Thoughts

LEXMARK CONFIDENTIAL 11

Communicate exhaustively

Define & plan the path forward and

execute timely

Strong CEO and Executive

sponsorship

It is a journey

Build a strong team

LEXMARK CONFIDENTIAL 12

Salamat