Unisys Corporation New · NYSE:UIS
Unisys Corporation New — Unisys — Investor Day (November 2017)
72 slides from Unisys Corporation New's investor day presentation, Nov 1, 2017
Slide 1: Unisys Investor / Financial Analyst Day
Unisys Investor / Financial Analyst Day November 1, 2017
Slide 2: Welcome and Introductions
Unisys Investor / Financial Analyst Day Welcome and Introductions Courtney Holben VP, Investor Relations November 1, 2017
Slide 3: Agenda
Agenda Time Content Presenter 8:00 am - 8:05 am Welcome and Introduction Courtney Holben CEO Remarks / Overview of Unisys Corporate 8:05 am - 8:35 am Peter Altabef Strategy 8:35 am - 9:50 am Enterprise Solutions Overview and Q&A Eric Hutto 9:50 am - 10:30 am Unisys Federal Solutions Overview and Q&A
Slide 4: Overview of Unisys Corporate Strategy
Overview of Unisys Corporate Strategy Presented by Peter Altabef President and CEO November 1, 2017
Slide 5: Disclaimer
Disclaimer • Statements made by Unisys during today’s presentation that are not historical facts, including those regarding future performance, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumption
Slide 6: The Essential Unisys
The Essential Unisys TAGLINE Value Propositions Securing Your • Security built into everything we do TomorrowTM • Software and domain expertise leveraged solutions VISION • Industry integrated-solutions To enhance peoples’ • Cross-industry innovations that work lives through digital • Best-in-class
Slide 7: Setting the Stage – Unisys Now
Setting the Stage – Unisys Now • Unisys has gone through significant changes since the beginning of 2015 – Re-organized company structure to support industry go-to-market effort to provide differentiation – Streamlined cost structure via restructuring plan – Increased liquidity via three capital mar
Slide 8: Implementing Change in an Evolving IT Landscape
Implementing Change in an Evolving IT Landscape Conditions in IT IT Investment Themes Market Are Evolving Reflect These Conditions • Scale ⁃ Increased focus on scale across • Digital transformation is a reality broader platform to leverage fixed-cost • Traditional low-cost providers under base (e.g.
Slide 9: Unisys Positioning
Unisys Positioning • Targeted industry go-to-market approach consistent with theme that companies that try to be “all things to all people” are unlikely to win • Ongoing innovation in offerings has been key focus, which market is now demanding beyond “your mess for less” • Significant focus on reduc
Slide 10: Sharpened Focus
Sharpened Focus Less Additional Focus Focus Sustaining Cost and Sub-scale Capabilities Labor Efficiencies New Product Launches Software Solution Adoption New Sales Model Go-to-Market Generalists and High-Impact Marketing Campaigns to Drive Growth © 2017 Unisys Corporation. All rights reserved. 10
Slide 11: Overview of Unisys
Overview of Unisys Increased Traction in Industry Go-to- Market Strategy U.S. Federal Public Sector Commercial Financial Services Highly Experienced Core Team • Justice, Law Enforcement • Justice, Law Enforcement • Travel and Transportation • Commercial and Retail and Border Security and Border Secu
Slide 12: 3-5 Year Business Model
3-5 Year Business Model 3-5 YEAR BUSINESS MODEL • Growth in-line with the market, currently estimated at 2-4% growth rate Revenue − Services growth 3-5% − Technology growth flat to 2% HIGHLIGHTS • Expand non-GAAP operating margin to 9-12% − Services: Mid-single digits % with upside potential Profita
Slide 13: Thank You.
UNISYS | 2228" Thank You.
Slide 14: Enterprise Solutions Overview
Enterprise Solutions Overview Presented by Eric Hutto Senior Vice President and President, Enterprise Solutions November 1, 2017
Slide 15: Disclaimer
Disclaimer • Statements made by Unisys during today’s presentation that are not historical facts, including those regarding future performance, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumption
Slide 16: Key Messages
Key Messages • Distinguished blue-chip clients • Industry application solutions and leveraged services offerings • Strong client base provides back-log revenue • Transforming services to be agile, responsive and profitable • Instilled operational discipline
Slide 17: Overview of Unisys Enterprise Solutions
Overview of Unisys Enterprise Solutions Increased Traction in Industry Go-to- Market Strategy Highly Experienced Public Sector Commercial Financial Services Core Team • Serving 300+ global • Handle 1 million+ life science • Serve 600 financial Deep Industry government agencies that incidents and ser
Slide 18: Global Delivery Center / Data Center / SOC
Global Delivery Center / Data Center / SOC UNISYS MANAGES Alingsas, SE (2) 21 Data Centers Globally Eagan, MN St Just, Milton Keynes, UK (2) Helsinki, FN London, UK Budapest, Hungary Salt Lake City, UT 4 Security Operation Centers (SOCs) Santa Clara, CA Ashburn, VA Augusta, GA Hong Kong Shanghai (3)
Slide 19: Services Revenue Models in Enterprise Solutions
Services Revenue Models in Enterprise Solutions • Managed Services ⁃ Fixed price or fixed price with variable components (e.g., ARCs/RRCs) ⁃ Gainsharing or other incentive arrangements (e.g., service levels and milestones) • Consumption-based (e.g., per incident) ⁃ All costs, risks, assets owned by
Slide 20: Focus on Faster Growing Industries
Focus on Faster Growing Industries 2014 2020 CAGR NEEDS • Digital Transformation Overall IT $3.56T(1) $3.75T 2% • Security First • Smarter Analytics • Passenger and Cargo (volume ↑) ✓ Travel and $130B(1) $151B 3.7% • Security Transportation • Logistics Management • Multichannel Banking ✓ Commercial
Slide 21: Client Needs
Client Needs Current Client Needs Future Client Needs (3+ Years) • Digital business requirements more well known than ever • Digital transformation and seamless digital workforce productivity of employees, partners and clients - According to recent Gartner CEO survey, 1/3 of clients define and measu
Slide 22: Strategic Direction
Strategic Direction Known as a client- Industry software Market leadership Targeted Modern, first organization that solutions that “open in next-generation cybersecurity that specialist-driven delivers industry- doors,” reinforce Digital Workplace is embedded go-to-market driven solutions relevancy
Slide 23: Key Industry IT Market Drivers
23 Key Industry IT Market Drivers Market Regulation Technology Commercial • Optimized Supply Chains • Drug Supply Chain Security Act • Pharma Supply Chain Serialization • Regulatory Compliance and Security • Unique Device Identification (UDI) • Connected Devices and Sensors • Passenger and Cargo Gro
Slide 24: Unisys Solutions
Unisys Solutions Government Commercial Financial Services Public Sector – U.S. Federal Digital Transformation Services Digital Workplace Services Advanced Analytics Services Leveraged Services Security Services Application Transformation Services • Justice, Law Enforcement • Travel and Transportatio
Slide 25: Achieving Revenue Growth
Achieving Revenue Growth Sources of Revenue Progress • Compensation plans tied to new logos and new scope EXPAND New Business • Vertical domain knowledge driving win rates in leveraged services • Reduce cycle time for new logo wins • Compensation plans tied to revenue growth Expansion EXTEND • Consu
Slide 26: Achieving Operating Margin Growth
Achieving Operating Margin Growth SG&A • Reduce G&A to allow for additional hiring in Sales and Marketing to support revenue growth • Moving to non-linear revenue models • Driving the revenue mix to higher-value solutions Cost to • Maintaining a continuous focus on increasing efficiency and Serve pr
Slide 27: Industry Marketing – 2017 Awards and Recognitions
Industry Marketing – 2017 Awards and Recognitions Gartner MQ Challenger Category Winner Innovation Partner of the Managed Workplace Services, NA Stealth™ Encrypted Network Solution Year Microsoft Azure Data Center Outsourcing & Infrastructure Utility Services, NA AMANDA Market Guide Visionary Innova
Slide 28: ES Revenue Trend
ES Revenue Trend Historical and Long-Term Business Model • Contracts with poor terms and conditions • Optimized services cost structure • Generalized sales resources • Global industry specific domain expertise Revenue • Loss of key clients • Strong backlog with retention of clients • Challenged deli
Slide 29: Key Messages
Key Messages • Distinguished blue-chip clients • Industry application solutions and leveraged services offerings • Strong client base provides back-log revenue • Transforming services to be agile, responsive and profitable • Instilled operational discipline
Slide 30: Thank you.
UNISYS | 2228" Thank you.
Slide 31: U.S. Federal Solutions Overview
U.S. Federal Solutions Overview Presented by Venkatapathi Puvvada (PV) Senior Vice President/President, Unisys Federal November 1, 2017
Slide 32: Disclaimer
Disclaimer • Statements made by Unisys during today’s presentation that are not historical facts, including those regarding future performance, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumption
Slide 33: Understanding Unisys U.S. Federal
Understanding Unisys U.S. Federal AGENDA ITEM #1 What drives the market and buying decisions? AGENDA What are the opportunities Unisys sees within ITEM #2 the U.S. Federal market? AGENDA What solutions does Unisys offer to meet ITEM #3 the market’s needs? AGENDA Where does Unisys fit in the U.S. Fed
Slide 34: Overview of Unisys U.S. Federal
Overview of Unisys U.S. Federal Industry First portion of Unisys Leader to “Verticalize” Long-Term Client U.S. Federal Relationships • Recognized as a Leader in the IDC MarketScape Well-Positioned U.S. Systems Integrators serving the Federal for Market Trends Government 2016 Vendor Assessment • 90 c
Slide 35: Key Messages
Key Messages • Industry Sectors with deep domain expertise: Client executives lead client relationships, delivery, program management and P/L operations (Civilian, Homeland/Critical Infrastructure Defense/Intelligence) • Centralized sales and business development organization with industry sector sp
Slide 36: Key IT Federal Market Drivers
36 Key IT Federal Market Drivers Budget Policy Technology • FY 2018 IT Budget Request: • IT Modernization Report • Cybersecurity $95.7B • Modernization of Govt Technology Act • Trusted Biometric-Based Identities • FY 2018 - 2022 IT Budget CAGR • Federal IT Acquisition Reform Act • Cloud Computing of
Slide 37: U.S. Federal Client Needs
U.S. Federal Client Needs Current Client Needs Future Client Needs (3+ Years) • Migration of infrastructure and applications to • Securing Internet of Things (IoT) with Secure Cloud data management • Application Modernization / DevOps • Software-defined infrastructure and security • Advanced and pre
Slide 38: Unisys Solutions
Unisys Solutions Government Commercial Financial Services Public Sector – U.S. Federal Digital Transformation Services Digital Workplace Services Advanced Analytics Services Leveraged Services Security Services Application Transformation Services • Justice, Law Enforcement • Travel and Transportatio
Slide 39: Delivering Innovative Solutions
Delivering Innovative Solutions Designed and developed Successfully transitioned one of the world’s service desk largest Big operations for Data Predictive 1.4 million Analytics offerings U.S. Army to assess and manage security risk from end users passengers and cargo Deployed Unisys Digital enterin
Slide 40: Success Story: U.S. Customs and Border Protection
Success Story: U.S. Customs and Border Protection Solutions: • Established, designed and implemented a portfolio of high-end application systems to screen passengers and cargo entering the United States • Advanced data analytics targeting system built to assess inbound traffic – One of the largest b
Slide 41: Industry Marketing – Awards and Recognitions
Industry Marketing – Awards and Recognitions Top 25 Most Innovative Companies of 2017 2017 Industry Innovator of the Year 22 Award Winners CBP 1995 - 2017 FACTS Mobile Solution: Innovation of the Year 2017 (Top 3) Fed100 2017 & 2016 GSA Top 50 IT (#8) Fleet Management Enterprise Companies in 2016 (T
Slide 42: Unisys U.S. Federal Growth Strategy
Unisys U.S. Federal Growth Strategy Positioning and Differentiation • IDC’s MarketScape assessment evaluated Federal government systems integrators’ capabilities in delivering solutions aligned to the trends in Social Business, Big Data and Analytics, Cloud Cybersecurity and Mobility • Unisys ranked
Slide 43: U.S. Federal Market Opportunities
U.S. Federal Market Opportunities Opportunities we are well positioned for: Positioned well with agencies that are expected to get increased spending in IT (e.g., DHS, Justice, Army, Air Force) One of leading market players with proven capabilities in Cloud, Agile Development, IT Modernization,
Slide 44: U.S. Federal Strategic Priorities
U.S. Federal Strategic Priorities Enable revenue Target new Invest in Creative Invest in growth and large revenue NextGen marketing initiatives “Best-in-Class” margin expansion streams in selected capabilities for to enhance recruiting and agencies differentiation brand and analyst associate placeme
Slide 45: Revenue Growth Initiatives
Revenue Growth Initiatives • Maintain above-market growth rates due to positioning in areas of increased government spend • Leverage company’s commercial offerings to break into new domains such as Life Sciences and Healthcare and Travel and Transportation • Increase investments in sales, client rel
Slide 46: Operating Margin Opportunities
Operating Margin Opportunities • Continue mix shift of pipeline toward Unisys domain expertise and IP-based solutions • Margin contribution from revenue expansion from Unisys software and related services • Higher margins from increased associate skillsets and certifications in high demand technolog
Slide 47: Q&A
UNISYS | 2228" Q&A Thank you for your time.
Slide 48: Technology Overview
Technology Overview Presented by Tarek El-Sadany Senior Vice President, Technology and Chief Technology Officer November 1, 2017
Slide 49: Disclaimer
Disclaimer • Statements made by Unisys during today’s presentation that are not historical facts, including those regarding future performance, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumption
Slide 50: Understanding Unisys Technology
Understanding Unisys Technology AGENDA ITEM #1 What are the client and market Drivers? AGENDA What solutions does Unisys offer to ITEM #2 meet the market’s needs? AGENDA Where does Unisys fit in the market and ITEM #3 how does it differentiate itself? AGENDA ITEM #4 How does Unisys make money with T
Slide 51: Client and Market Drivers
Client and Market Drivers Client Needs Future Client Needs (3+ Years) • We want to feel safe – data, identity, computing, • Security is a necessity - data, identity, computing, mobility, money, travel and society mobility, money, travel and society • We expect everything to be as easy as our phones
Slide 52: Unisys Solutions
Unisys Solutions Government Commercial Financial Services Public Sector – U.S. Federal Digital Transformation Services Digital Workplace Services Advanced Analytics Services Leveraged Services Security Services Application Transformation Services • Justice, Law Enforcement • Travel and Transportatio
Slide 53: Stealth: Vision and Market Demand Converge
Stealth™: Vision and Market Demand Converge Stealth™ Industry Awards: Microsegmentation and Identity Management are now in demand: ☐ A top 10 technology for ☐ Stealth™ sales velocity is security (2016 and 2017) increasing ☐ “…one of the top-three ☐ Security players are inquiry subjects for clients a
Slide 54: Stealth Success
Stealth™ Success 3Q 2017 • Most new Stealth wins in a quarter ever • Shortest sales cycle in Stealth history • Stealth sold in all 4 Unisys geographies plus Federal • Wins across industries: Financial Services, Public Sector (state, foreign), US Federal, Travel and Transportation, and Other Commerci
Slide 55: The Evolution of ClearPath Forward
The Evolution of ClearPath Forward™ Security | Performance | Reliability Application Environment .NET, JAVA, Python, Eclipse Software Defined Environment >97% ClearPath Forward™ Firmware RETENTION IN • Security Core ClearPath • Performance Forward™ Base • Reliability (4 year period)* Hypervisor Hype
Slide 56: The ClearPath Forward Skyline
The ClearPath Forward™ Skyline Two Large Retail Banks in EMEA Bank 1 - Private Cloud • Large multi-million dollar sale • Software and Support • Significant services component • Applying for an Innovation Award Bank 2 - Integrated System • Deploying latest environments • Address organic growth and ev
Slide 57: Industry Application Products – Our Differentiation from Competition
Industry Application Products – Our Differentiation from Competition Differentiating by Developing Integrated Industry Solutions Government Commercial Financial Services Industry • Digital Investigator™ • AirCore® • Elevate™ Application • LineSight™ (2018) • Digistics™ • Core Banking CSF, SFB, URBIS
Slide 58: Revenue and Margin Opportunities
Revenue and Margin Opportunities • Stable to slight decline of the ClearPath Forward technology • Increase the revenue and margin for the Stealth™ family of products • Increase the revenue and margin for industry application products 3 to 5 Year Business Model: Revenue Growth of 0% – 2% Maintain or
Slide 59: Unisys Technology Opportunities
Unisys Technology Opportunities Industry Building a technology innovation platform to develop Innovation products to meet market demand Long-Term >97%* Retention Rate with ClearPath Forward™ Client client base Relationships Security in Everything Well positioned to become a security leader with next
Slide 60: Q&A
UNISYS | 2228" Q&A Thank you for your time.
Slide 61: Financial Business Model
Financial Business Model Presented by Inder M. Singh Senior Vice President and CFO November 1, 2017
Slide 62: Disclaimer
Disclaimer • Statements made by Unisys during today’s presentation that are not historical facts, including those regarding future performance, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumption
Slide 63: Key Goal – Driving Shareholder Value
Key Goal – Driving Shareholder Value OBJECTIVES Drive Revenue Growth Improve Profitability Enhance Cash Flow Actively Manage Pension © 2017 Unisys Corporation. All rights reserved. 63
Slide 64: Sector Revenue and Profitability
Sector Revenue and Profitability Enterprise Solutions and U.S. Federal 3-5 year business model 3-5 YEAR BUSINESS MODEL Enterprise • Revenue growth currently estimated at 2-4% growth rate Solutions • Expand non-GAAP operating margins to approximately 10%-13% HIGHLIGHTS • Revenue growth currently esti
Slide 65: Total Unisys Revenue and Profitability
Total Unisys Revenue and Profitability Implications of the Enterprise Solutions and U.S. Federal 3-5 year business model 3-5 YEAR BUSINESS MODEL • Growth in-line with the market, currently estimated at 2-4% growth rate Revenue − Services growth 3-5% − Technology growth flat to 2% HIGHLIGHTS • Expand
Slide 66: Key Initiatives – How Are We Getting There?
Key Initiatives – How Are We Getting There? Drive • Industry application products and services Revenue • Leveraged services offerings 3-5 YEAR BUSINESS MODEL Growth Improve • Complete restructuring program OBJECTIVES Profitability • Maintain a continuous focus on increasing productivity and efficien
Slide 67: Actively Manage Pension Obligations and Tax Assets
Actively Manage Pension Obligations Cost Investment Efficiency Efficiency Liability Hedges • PBGC premiums • Improve risk/ Reduction • Buy-ins • Management fees return ratio • Plan terminations • Derivatives • Administrative • Prioritize • Annuities expense contributions Efficiency Structural Invest
Slide 68: Keys to Achieving the 3-5 Year Business Model
Keys to Achieving the 3-5 Year Business Model Enterprise Solutions and U.S. Federal driving growth in TCV and Achievement of TCV/ACV Targets ACV, particularly in New Business Lean Competitive Cost Structure Continuous focus on increasing services productivity and efficiency Industry Application Prod
Slide 69: Thank You
UNISYS | 2228" Thank You
Slide 70: UNISYS | 2228"
UNISYS | 2228"
Slide 71: Closing Remarks
Closing Remarks Courtney Holben VP, Investor Relations November 1, 2017
Slide 72: Unisys Investor / Financial Analyst Day
Unisys Investor / Financial Analyst Day November 1, 2017