Unisys Corporation New · NYSE:UIS
Unisys Corporation New — Unisys — Investor Day (June 2023)
129 slides from Unisys Corporation New's investor day presentation, Jun 15, 2023
Slide 1: Investor Day 2023
Investor Day 2023 June 15, 2023
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unisys Co
Slide 3: Agenda - June 15
Investor Day 2023 Agenda - June 15 Topic Presenter(s) Welcome Michaela Pewarski Vice President, Investor Relations Vision and Objectives Peter Altabef Chair & Chief Executive Officer Strategy Mike Thomson President and Chief Operating Officer Cloud, Applications & Infrastructure Manju Naglapur Solut
Slide 4: Agenda - June 15
Investor Day 2023 Agenda - June 15 Topic Presenter(s) Enterprise Computing Solutions Chris Arrasmith Senior Vice President and General Manager, Enterprise Computing Solutions Go-To-Market Christine Wenzel Senior Vice President, Global Sales Lisa Madion Senior Vice President, Global Client Management
Slide 5: Vision and Objectives
Vision and Objectives Peter Altabef Chair & Chief Executive Officer JUNE 15, 2023
Slide 6: Market backdrop
Market backdrop We operate in a large and growing market Secular Growth Tailwinds 1.5T 11% ~30% ~20% ~10% 3YR CAGR Infrastructure- Next-Generation Industry as-a-Service Compute Solutions 1.1T ~$250B by 2025 ~$200B by 2025 ~$140B by 2025 Source: Everest, Gartner, Grand View Research, Transparency Mar
Slide 7: Driving outcomes across the client's entire business
Driving outcomes across the client’s innovate faster entire business maximize productivity retain talent transact quicker comply with regulation Leveraging data and analytics, optimize workforce grow revenue generative AI, and advanced reduce emissions computing to drive outcomes despite rising comp
Slide 8: What we have achieved
What we have achieved Enhanced our Acquired key Scaled our Transformed solutions portfolio capabilities go-to-market our brand Expanding our Filling out our With a robust Repositioning Unisys innovative Next-Gen solutions portfolio & ecosystem of channel as a technology Solutions in areas with bring
Slide 9: An investment in Unisys is an investment in…
An investment in Large market Large market opportunity, operating Unisys is an 1 opportunity within the ~$1 Trillion IT solutions market investment in… Innovative Next-Gen Increasingly levered to higher growth 2 and margin areas of the marketplace and Industry Solutions with expanding development ca
Slide 10: What you will hear today…
What you will hear today… Our commitment to achieving Long-Term Growth Innovation in Targets Strategy Practice faster growth, improving profitability, generating meaningful free cash flow, and creating shareholder value Efficiency License & Pension Plan Support Management
Slide 11: Strategy
Strategy Mike Thomson President & Chief Operating Officer JUNE 15, 2023
Slide 12: Unisys today
Unisys today unisys
Slide 13: We drive breakthroughs
We drive We are… breakthroughs ~16K 2K+ ~50 Associates Engineers Partners Our top 50 clients on average Supporting… have been with us for more than 20 years 800 + 50 + ~11M ~230 financial institutions Clients Countries End-Users globally depend on Unisys every day With… 8 out of 10 of the world’s to
Slide 14: What we do
What we do Our clients rely on us to solve many of their most complex business and technology challenges to unlock faster growth and operational efficiency Cloud Applications Digital & Infrastructure Workplace Enterprise Business Solutions Solutions Computing Process (CA&I) (DWS) Solutions (ECS) Sol
Slide 15: Experienced leadership
Experienced leadership With deep technology expertise Corporate Leadership Peter Altabef Mike Thomson Deb McCann Dwayne Allen Katie Ebrahimi Teresa Claudius Matt Marshall Chair & CEO President & COO CFO CTO & CHRO Poggenpohl Sokenu CIO Innovation CMO GC Business Leadership Manju Naglapur Joel Raper
Slide 16: We get results… Analyst Recognition
Cloud, Applications & Infrastructure We get results… Magic Quadrant PEAK Matrix Provider Lens NICHE PLAYER: Data MAJOR CONTENDER: LEADER: Private Center Outsourcing and Cloud Services Hybrid Cloud and Data Hybrid Infrastructure Assessment North Center Services Managed Services America Analyst Provid
Slide 17: We get results… Operational Recognition
We get results… Cloud, Applications & Infrastructure AWS Advanced Google Cloud Microsoft Gold Consulting Partner Partner Advantage Partner Operational Program Recognition Digital Workplace Solutions Winner Best Service Desk Winner Best Service & HDI Global Support Customer Experience - Support Cultu
Slide 18: We are acknowledged as an ESG leader…
We are Goal of reducing GHG emissions by 75% met in 2022, five years ahead of schedule acknowledged as an ESG New NetZero Goal of 75% Scope 1 and 2 carbon emissions reductions (from FY’20 baseline) by 2030 leader… Improved Improved Improved MSCI rating ISS rating EcoVadis ESG rating from BB to A fro
Slide 19: Our strategy
“To be strategic is to concentrate on what Our is important, on those few objectives that can give us a comparative advantage, on what is important to us rather than others, strategy and to plan and execute the resulting plan with determination and steadfastness.” Richard John Koch British managemen
Slide 20: Core elements of our strategy
Core elements of our strategy Addressable Solution Land Margin Operational Market Growth Development and Expand Expansion Excellence
Slide 21: Leading with our Next-Gen Solutions
MARKET GROWTH Leading with our Next-Gen Solutions Experience-based workplace solutions to enable centralized, secure, and proactive management of Modern devices, communication & collaboration platforms, as Workplace well as endpoints all wrapped with data telemetry, analytics, LLM, governance and re
Slide 22: Next-Gen Solutions aligned to high-growth markets
MARKET GROWTH Next-Gen Solutions aligned to high-growth markets Overall IT Solutions Market High-Growth Markets 3-YR CAGR $1.5T 3 Year Smart Workplace CAGRs Modern Mobility/BYOD Workplace 12% Unified Communications Infrastructure Consulting $1.1T DP&A Application Modernization 19% Infrastructure as
Slide 23: Where we are going
MARKET GROWTH We have the opportunity to significantly increase Where we are going our mix of Next-Gen revenue over the next three years 10% -15% Next-Gen ~65% ~35 % Annual Growth <55% 45% + Traditional Next-Gen Solutions Solutions Traditional Next-Gen Solutions Solutions ~38% Expected 2023 Next-Gen
Slide 24: Penetrating the mid-market $2B-$5B
Buying themes MARKET GROWTH Penetrating the Consolidated spend with fewer partners mid-market Complexity and skills gap challenges Less variability and customization required $2B - $5B High demand for trust, reliability and personalization Target client size by Value industry/domain expertise revenu
Slide 25: Our variable solution development platform
SOLUTION DEVELOPMENT Our variable solution development platform A platform that balances industry expertise, targeted innovation & integration, managed and purposeful orchestration to deliver optimized value Flexibility & variability in the technology solutions Standardized with ability to leverage
Slide 26: Our approach to data analytics & AI
SOLUTION DEVELOPMENT Our approach to data analytics & AI Simplifying complexity Areas of opportunity Expanding upon 34 existing solutions Data DESIGN IMPLEMENT MANAGE INNOVATE Engineering Data Security & Governance Generative AI Domain Specified Insights Business Outcomes Quantum Computing
Slide 27: Landing effectively
LAND AND EXPAND Landing effectively Top of funnel lead Brand awareness generation targeting & marketing prospects aligned to our priorities Industry analysts Engaging third- 4 consecutive party analysts & quarters of new logo qualified & advisors advisors our clients turn to for advice pipeline grow
Slide 28: Awareness campaigns driving measurable success
LAND AND EXPAND Awareness campaigns driving measurable success $567M 4X +39% 2023 marketing-influenced qualified pipeline created in More clients and Increase in Q1 prospects visiting our LinkedIn followers 2x website1 Marketing driven pipeline March 2023 +10% 1Q annualized versus FY 2022 Highest si
Slide 29: Quality client base
LAND AND EXPAND Quality client base Serving as access points for expansion TECHNOLOGY/ LIFE SCIENCES TRAVEL AND MANUFACTURING/ FINANCIAL PUBLIC RETAIL TELECOMS/MEDIA AND HEALTHCARE TRANSPORTATION CPG SERVICES SECTOR Note: logos reflect select Unisys clients
Slide 30: Existing client growth opportunity
LAND AND EXPAND Existing client growth opportunity $2.5B Traditional $9B Digital Platforms $31B Workplace & Applications Untapped addressable wallet Traditional at our existing clients for DWS Infrastructure and CA&I solutions alone1 Modern $2B Workplace 44% Of our $1M+ clients bought solutions from
Slide 31: How we plan to expand gross margins
MARGIN EXPANSION How we plan to expand gross margins Higher value capabilities Next-Gen Traditional Lower the cost of delivery Incorporating generative AI, Solutions Margins through increased use of hyper-automation, quantum computing automation and labor optimization Targeting ~25% Targeting ~15% N
Slide 32: Operational excellence
OPERATIONAL EXCELLENCE Focused on reducing operating costs and Operational excellence achieving sustainable free cash flow generation Reducing Associate SG&A Experience Capex-Lite Cash Flow Real estate rationalization & Tailored training & career Leverage partner ecosystem Continue to remove pension
Slide 33: Cloud, Applications & Infrastructure
Cloud, Applications & Infrastructure Delivering the “AI” in CA&I @ scale
Slide 34: Speaker and agenda
Speaker and agenda 01 Who we are 02 Global innovation and solutions portfolio 03 Enterprise AI continuum 04 AI solutions @ clients 05 Client stories Manju Naglapur Senior Vice President and General Manager, Cloud, Applications & Infrastructure Solutions
Slide 35: Who we are
Who Lead with business outcomes we are Cloud & digital native Secure enterprise foundation Cloud Applications & Scale with platforms & AI Infrastructure Redefine what's possible. We design, build, deploy, and manage proven cloud, applications, and infrastructure Agile & deep technical engineering so
Slide 36: Market opportunities
Market opportunities 1 Transform Multi cloud Security Optimize 2 Accelerate Digital Automation Future work 3 Disrupt Core AI Applied AI Generative AI
Slide 37: Cloud, Applications & Infrastructure Portfolio
Modern Applications Cloud, Applications Hybrid Infrastructure & Infrastructure Data Analytics Experience & AI Breakthroughs Portfolio Cybersecurity Cloud Management
Slide 38: Experience Breakthroughs
Modern Application Solutions Application Migration & Modernization Enterprise Applications Modern User Experience Modern Application Development & Maintenance Applications Data Analytics & AI Solutions Data Migration & Modernization Hybrid Modern Data Engineering Infrastructure Data Analytics Core A
Slide 39: Leading with industry
Leading with Financial Institutions 85% Public Sector Life Sciences industry Ofand Digitize CEOs reported drive Enabling leading life Accelerate digital increased innovation withininvestments sciences transformation with public in digital sector capabilities using enterprises to Cloud & AI solutions
Slide 40: Automated solutions built to scale
CLOUD, APPLICATIONS & INFRASTRUCTURE Automated solutions built to scale CloudForte® Asset Suite
Slide 41: Enterprise AI Continuum
Enterprise AI Continuum Applied AI Solutions AI Applied to business opportunities AI Core Establish, Govern & Democratize AI within the enterprise AI Frameworks & Capabilities Developer frameworks, foundational models, toolchains & capabilities to enable Applied AI solutions
Slide 42: Providing AI solutions
Providing AI solutions Generative AI Fraud Detection Content Intelligence Customer AI Continuous AI Delivery Automation Customer analytics, Code assist, Text analytics, AI ops, RPA, AI on knowledge graph, personalization, AI core foundation, external data quality, chatbots, contact canter, risk mode
Slide 43: European financial institution
Challenge: Ability to European adapt to changing regulations across financial Europe and fast-changing institution market conditions Multi-cloud platform adoption Solution: Cloud first Frictionless cloud approach, OCM & modernization & 40% governance through cloud upskilled labor business office
Slide 44: US mortgage leader
Challenge: Misalignment US between business mortgage and technology units leader Modern continuous delivery @ Scale 100% elimination Solution: No-touch, continuous delivery of manual process platform to multiple clouds for delivery
Slide 45: Global airline hospitality group
Challenge: Legacy core Global airline ERP systems & business process flows hospitality group Digital-first approach Solution: Modern, flexible, 95% reduction in production multi-tenant applications & issues & 70% reduction application lifecycle in maintenance costs management
Slide 46: Breakthrough with Unisys
Breakthrough with Unisys 01 Build resilient multi-cloud foundations Build, migrate & manage public, private, hybrid cloud foundations 02 Accelerate modern digital capabilities Drive business outcomes through digital first modern applications 03 Maximize enterprise insights with AI Disrupt your compe
Slide 47: Digital Workplace Solutions
Digital Workplace Solutions Leading with experience
Slide 48: Speakers and agenda
Speakers and agenda 01 Opportunities and overview 02 Client showcase 03 Portfolio and solutions 04 Technology and AI deep dive 05 Solution showcases Joel Raper Alan Shen Senior Vice President and Vice President, Digital General Manager, Digital Workplace Solutions Workplace Solutions
Slide 49: Oren Harari quote
“The electric light did not come from the continuous improvement of candles” Oren Harari Business professor at University of San Francisco and Best-Selling author of business management books
Slide 50: Market opportunities
Market opportunities 1 Transform Personas Frontline worker User onboarding Standardized Time to Endpoint as a 2 Accelerate automation value service OpenAI Generative AI AI / ML 3 Disrupt LLM & ChatGPT chatbots business insights
Slide 51: Digital Workplace Solutions (DWS) at-a-glance
Digital Workplace Solutions (DWS) at-a-glance Workplace 360 degree Next-Gen Enhanced employee business insights frontline services service desk experience
Slide 52: Global household appliances company
Global household Challenge: achieve 2X growth appliances in 5 yrs company Trusted advisor for experience futures Solution: XLA 2.0, Higher engineering onboarding, & smart output (15% NPS increase) meeting room services
Slide 53: Creating the Modern Workplace
Seamless Collaboration Creating the Workplace as a Service Modern Experience Proactive Experience Workplace Breakthroughs Leading with experience Intelligent Workplace Services Modern Device Management
Slide 54: Experience Breakthroughs
Seamless Collaboration Managed Meeting Rooms Seamless Managed M365 & Teams Collaboration Frontline Worker Enablement Managed Voice Proactive Experience Workplace Unified Experience Management Endpoint as a Service as a Service Proactive Experience Experience Modern Device Management Breakthroughs Un
Slide 55: Seamless Collaboration
Seamless Collaboration Workplace as a Service Seamless Experience Proactive Experience Collaboration Breakthroughs Frontline worker Intelligent enablement Workplace Services Modern Device Management
Slide 56: Proactive Experience
Seamless Collaboration Workplace as a Service Proactive Proactive Experience Breakthroughs Experience Experience Endpoint as a service Intelligent Workplace Services Modern Device Management
Slide 57: Workplace as a Service
Seamless Collaboration Workplace as a Service Proactive Workplace as Experience Breakthroughs Experience a Service User on-boarding services Intelligent Workplace Services Modern Device Management
Slide 58: Better together – PowerSuite & InteliServe
Better together – PowerSuite® & InteliServe™ Predictive & Innovative Instant Automation & Service Business Insights Enhancements Actionable service PowerSuite® improvements InteliServe™ AI-powered vNext data analysis Org & user Multi-platform & insights engine context insights automation library Div
Slide 59: DWS solution maturity
DWS solution maturity Transformative Consulting Twelve domains of expertise provide “trusted advisor” advisory services User Experience Meeting Rooms Collaboration Endpoint Identity & Access Voice/Conferencing Data Governance Messaging Management Contact Center Low Code / Automation Virtual Desktop
Slide 60: AI @ DWS: machine learning and generative
AI @ DWS: machine learning and generative Machine Learning AI Generative AI Persona Hybrid Predictive Self-learning Humanized & Service Insights relevant worker Developer endpoint automation frontline desk agent query business experience & acceleration health optimization chatbot assist reporting in
Slide 61: Real Estate
Real Challenge: Adapt to changing office needs Estate Hybrid Work Modernization Solution: Onboarding 1 hour onboarding automation & smart meeting & ~$1M lost productivity room services recovery
Slide 62: Healthcare
+ Challenge: Merge Healthcare two hospital systems Frontline Worker Optimization Solution: Front line Priceless life-saving focus health care worker without IT distractions
Slide 63: Digital Workplace Solutions (DWS) at-a-glance
Digital Workplace Solutions (DWS) at-a-glance Workplace 360 degree Next-Gen Enhanced employee business insights frontline services service desk experience
Slide 64: Enterprise Computing Solutions
Enterprise Computing Solutions Unlocking innovation with Unisys IP
Slide 65: Speaker and agenda
Speaker and agenda 01 Opportunities and overview 02 Client showcase 03 Portfolio and solutions 04 Quantum deep dive Chris Arrasmith Senior Vice President and General Manager, Enterprise Computing Solutions
Slide 66: We keep breaking through
U We keep breaking through
Slide 67: Opportunities to drive value for clients
Opportunities to drive value for clients Protecting business- Overcoming skills Embracing emerging Creating value through critical workloads scarcity technologies such as data analytics Generative AI and Quantum Computing
Slide 68: Enterprise Computing Solutions (ECS) at-a-glance
Enterprise Computing Solutions (ECS) at-a-glance ClearPath Services Next-Gen Industry Forward ® expansion compute solutions Licenses and Support (L&S) Specialized Services and Next-Gen Compute (SS&C)
Slide 69: European banking institution; government-owned; air cargo carriers
European banking Government-owned Leading international institution financial institution air cargo carriers Enabling client innovation through a Delivering digital capabilities to move Providing a comprehensive management cloud-based software solution for transactions from branches to an online, sy
Slide 70: ECS in daily life
ECS in daily life 70% of mortgage volumes in Brazil 7% of air freight globally 80M+ voicemail boxes in EMEA 8% of passenger volume
Slide 71: ECS by the numbers
ECS by the numbers 2,100+ 1,200+ Associates Engineers 75%+ 5,000+ Top L&S accounts Organizations increasing workloads Supported** 43 9.0 Countries* CSAT Score (2022) * Unisys ECS deployments ** includes direct sale, resale, and hosted providers
Slide 72: License & Support (L&S)
License & Support (L&S) Services NextGen Industry ClearPath Compute Solutions Expansion Forward License and Support (L&S) Specialized Services and Next-Gen Compute (SS&C)
Slide 73: What is ClearPath Forward?
What is ClearPath Forward? The Unisys ClearPath Forward Ecosystem Secure, Certified to run Unisys Client Partner high-intensity, wherever the Solutions Applications Applications proprietary client needs compute 73 environments IDE / Low Code Dev CPF Integration / Middleware Unisys Operating Systems
Slide 74: Why clients choose ClearPath Forward again and again
Why clients choose ClearPath Forward again and again Secure, high performance, enterprise computing Satisfied clients Unisys & long-standing ClearPath relationships Forward A commitment Platform to continuous innovation Ecosystem Full suite of addresses client value-added opportunities services
Slide 75: Helping our clients achieve breakthroughs
Helping our clients achieve breakthroughs "During the time that we have collaborated, we have worked very well, showing a very professional relationship, responding with great agility, showing great flexibility and adaptability at all times and with great control over the products that have been off
Slide 76: Grace Hopper quote
“The information is more valuable than the hardware which processes it." Grace Hopper Former Unisys Associate and Computing Pioneer
Slide 77: Specialized Services & Next-Gen Compute (SS&C)
Specialized Services & Next-Gen Compute (SS&C) ClearPath Services NextGen Industry Forward Expansion Compute Solutions License and Support (L&S) Specialized Services and Next-Gen Compute (SS&C)
Slide 78: 87% of Digital Transformations Fail
87% of Digital Transformations Fail Harvard Business Review
Slide 79: Enabling successful transformations
Unisys Experience Enabling successful Investment Ecosystem Deep Maximization Prioritization Expertise transformations Incremental Approach Intuitive UI/UX Flexibility Compliance Adaptable Foundation Hybrid architecture Connectivity Scalability
Slide 80: Helping clients harness their data, wherever they are
Helping clients CPF-Based Managed Ecosystem Modernization Next Gen Compute harness their Services Research data, wherever they are on their journey Travel & Transportation Banking and Financial Unisys Logistics Solutions Services Optimization
Slide 81: Evolving platform solutions to outcome-driven applications
Evolving platform solutions to outcome-driven applications Deploy reinforced learning, advanced analytics and generative AI Unlock client Deliver Leverage industry outcome-driven, and external expertise industry-specific data solutions Utilize Unisys pre-trained data models
Slide 82: Unlocking the value of client and external data
Unlocking the value of client and external data through data analytics Data Acquisition Data Cleansing Unstructured, Data Transformation Rationalized Structured Actionable and Dark Data Data Data Training Data Validation
Slide 83: Solving next-level business problems
Solving next-level business problems Quantum annealing, advanced analytics and AI Traditional Rationalized Computational Tools 7years Actionable Data vs. Advanced Artificial Quantum Analytics Intelligence Annealing Pre-trained Models Reinforced Machine Learning powered by quantum annealing Creating
Slide 84: Introducing Unisys Quantum IQ
Introducing Unisys Quantum IQ Applying our unique mix of expertise in data analytics, quantum computing, and artificial intelligence to deliver real-time logistics optimization
Slide 85: Unisys Logistics Optimization demo
Unisys Logistics Optimization™ demo
Slide 86: Bringing new industry solutions to life
Bringing new 30% Reduction in 20% Fuel efficiency with industry claims costs optimized loading of Cargo solutions to life Unisys Quantum IQ™: Unisys Logistics Optimization™ 25% 10% projected outcomes Improve on-time performance with Reduced emissions & reduced ground handling errors carbon footprint
Slide 87: Enterprise Computing Solutions at-a-glance
Enterprise Computing Solutions at-a-glance ClearPath Services NextGen Industry Forward Expansion Compute Solutions License and Support (L&S) Specialized Services and Next-Gen Compute (SS&C)
Slide 88: Go-To-Market
Go-To-Market Land & expand UNISYS
Slide 89: Speaker and agenda
Speaker and agenda 01 Why choose Unisys 02 Sales philosophy 03 Partnership ecosystem 04 Client case studies Christine Wenzel Lisa Madion Senior Vice President, Senior Vice President, Global Sales & Partnerships Global Client Management
Slide 90: Transforming fresh ideas into powerful outcomes
Transforming fresh ideas into powerful outcomes Christine Wenzel Senior Vice President, Global Sales
Slide 91: Why choose Unisys
Why choose Unisys Experience Expertise Impact Innovation
Slide 92: Sales philosophy
Sales People philosophy Our teams and our clients Process How we sell Partnerships Who we sell with Equals profitability
Slide 93: Go-to-Market structure
Go-to-Market structure Sales Land Executives Clients Client Expand Executives
Slide 94: Our process
Our process Working smarter Faster proposals through bid-desk implementation Consistent pricing models and repeatable sales Maximizing time with clients Understanding challenges to sell an outcome Pricing contracts on value delivered not cost
Slide 95: Our target markets
Our target markets Commercial Financial Services Large Companies Public Mid-Market
Slide 96: Right combination of agility and scale for the mid-market
We have the right combination of agility and scale for the mid-market Opportunities $2B – $5B revenue Manufacturing Energy & Travel & Healthcare Insurance Utilities Transportation
Slide 97: The ways we go to market
The ways we go to market Direct Alliance Channel Private Equity Centralized sales Go to market with Expanding Unisys’ Private Equity sponsors supported by Global leading technology portfolio offerings with facilitating access to providers, leveraging cutting edge solutions of clients within their Pa
Slide 98: Key Unisys partners
Key Unisys partners aWws € EE Microsoft servicenow ~~) Technologies Google Cloud SAE Sbmc_ clinisys <cenesys & mevauia Ovx.. sipcom: © nexthink OKLA snow? COMMVAULT’ aneese. Clariti Gdatabricks Lenovo qualtrics readyworks — Cfechnslogent Qe
Slide 99: Point of spear Offerings
Point of spear Opening new logo doors and quickly establishing Unisys’ value Offerings proposition Point Standardized solutions sold in a repeatable fashion with short sales cycles (E.g. Solutions software, “as-a-service,” and cyber security) Discreet engagements with specific scopes of Project work
Slide 100: Experience matters
Experience matters Lisa Madion Senior Vice President, Global Client Management
Slide 101: Our clients told us they had three priorities
Our clients told us they had three priorities Personalized Dedication to Proactive attention innovation partnerships
Slide 102: This is what drives us. Partnering to deliver powerful outcomes
This is what drives us. Partnering to deliver powerful outcomes Expertise Solving the now Thinking aligned to and predicting beyond the potential the next contract
Slide 103: Key metrics
Key metrics New Business & Average Deal TCV Partnership TCV Size Qualified Cycle Length Win Rates Pipeline Client Wallet Cross Sell Renewal Rates Share Penetration
Slide 104: A trusted partner delivering a high-quality service
Business challenge: A trusted partner Create a premier brand reputation as a provider of devices and services that connects businesses and consumers. delivering a high- quality service 2 Service Awards Partner Scaling and expanding experience globally 2016: Signed expansion, realizing double digit r
Slide 105: How we are delivering
First time outsourcer wanted to improve How we are delivering quality of existing IT Across Service Desk, Field Services, End Integrated DWS support while reducing offerings Point Management, Data Center Management cost of IT spend Supporting 6,000 employees in 8 countries Scale on 4 continents Mid-
Slide 106: Financial Overview
Financial Overview Deb McCann Chief Financial Officer JUNE 15, 2023
Slide 107: Agenda
Historical financials & 2023 guidance Profitability & Free Cash Flow Agenda Financial targets
Slide 108: 2022 revenue profile
2022 revenue 14% 15% 26% profile 2022 2022 45% 13% BY SEGMENT BY GEOGRAPHY 34% 26% Highly diverse 27% revenue streams DWS CA&I ECS All Other US & Canada EMEA Asia Pacific Latin America with large base of recurring revenue 18% 31% 40% 2022 2022 BY SECTOR BY TYPE 82% 29% Commercial Financial Services
Slide 109: Historical financials and 2023 guidance
Historical financials and 2023 guidance $M FY21 FY22 FY23 REVENUE $ 2,054 $1,980 ( 7% ) to ( 3% ) (1%) to 4% ex-L&S Note: revenue guidance in constant currency. 2023 GROSS PROFIT $ 572 $ 530 L&S revenue impacted by early license renewals GAAP GROSS MARGIN % 27.8% 26.7% signed in 2022 OPERATING PROFI
Slide 110: Improving Free Cash Flow
Improving Targeting 40 - 45% adjusted EBITDA to FCF conversion by 2026 Free Cash Flow (pre-pension) While meeting our Working capital Capex-lite pension obligations improvement strategy & investing for AP operational improvements Improved contract terms Capex ~5% of revenue future growth Improving F
Slide 111: License & Support
License & Strong profitability & visibility Support with growing adjacencies Growing L&S revenue in Mission-critical operating system 2024 and 2025 low- single and low-double Running critical business operations on-premise & in digits, respectively the cloud ~$360M Decades-long client relationships
Slide 112: Targeting $50M annual SG&A reduction by 2026
Targeting ~$20M ~$20M $50M Optimize and streamline core G&A Balance labor location and pyramid annual SG&A functions and real reduction $50M estate footprint by 2026 ~1/3 per year run-rate achieved 2023-2025 ~$10M Information Technology centralization and normalization © 2023 Unisys Corporation. All
Slide 113: Pension strategy
Since Year-End 2019 Pension strategy Liabilities $B $9 $7.9 Transfers to Annuity $6 $4.8 multi-client / purchases Lump sums multi-employer $4.4 $3.1 plans $3 $2.8 $1.6 3 US transactions 1 US transaction 2 international plans $0 totaling ~$750M totaling ~$300M totaling ~$700M 2019 2020 2021 2022 US n
Slide 114: Declining estimated pension cash contributions after 2026
Declining estimated pension cash contributions after 2026 Estimated global pension cash contributions $M, as of December 31, 2022 $144 $139 $132 $123 $30 $30 $112 $30 $102 $30 $88 $29 $29 $30 $54 $114 $109 $102 $93 $83 $73 $29 $58 $41 $29 $25 $29 $29 $29 <$5 2023 2024 2025 2026 2027 2028 2029 2030 2
Slide 115: Mid-term Free Cash Flow assumptions
Mid-term Free Cash Flow assumptions Targeting 40 - 45% adj. EBITDA to Free Cash Flow conversion by 2026 (pre-pension) Capital Taxes Interest Restructuring & Pension Expenditures Other Annual Capex of ~4- 5% Annual Cash Taxes of Annual Interest Estimating ~$40M in Refer to previous of Revenue ~$50-$6
Slide 116: Adding it all up
Adding it all up
Slide 117: Driving revenue growth, expanding profitability
Driving revenue growth Expanding profitability TARGET 3YR CAGR FROM MID-POINT OF FY 2023 GUIDANCE TO 2026 TARGET FULL-YEAR 2026 NON-GAAP MARGINS 4% - 6% 5% - 7 % 10% - 12% 17-19% Total Company Ex-L&S Total Company Total Company Revenue Growth Revenue Growth Operating Margin Adj. EBITDA Margin 10%
Slide 118: Estimated Free Cash Flow
Targeted by 2026 Estimated Free Cash $2.1B - $2.2B 4% - 6% Flow Total company revenue Revenue Growth equation 350 - $400M + $Adjusted ~17-19% EBITDA Adj. EBITDA Margin Sufficient to service pension, invest in future growth, and drive shareholder value = $150 - $175M 40 - 45% Adj EBITDA to Free Cash
Slide 119: Pre-pension Free Cash Flow expected to increase
Pre-pension Free Cash Flow expected to increase as estimated expected pension contributions decrease Estimated global pension FCF expected to increase as $150-$175M cash contributions 2026 Estimated FCF pension contributions are (Pre-Pension) expected to decrease $M, as of December 31, 2022 $144 $13
Slide 120: An investment in Unisys is an investment in…
An investment in Large market Large market opportunity, operating Unisys is an 1 opportunity within the ~$1 Trillion IT solutions market investment in… Innovative Next-Gen Increasingly levered to higher growth 2 and margin areas of the marketplace and Industry Solutions with expanding development ca
Slide 121: Appendix
Appendix unisys
Slide 122: Estimated pension sensitivity
Estimated sensitivities to 2023 U.S. total Trust return and Dec. 31, 2023 10yr Treasury yields Estimated (Including estimated impact of March 2023 annuity purchase) pension Estimated implied year-end 2023 GAAP Deficit $M 2023 Return sensitivity 2.9% 0% 740 7.4% 15% 400 580 For U.S. Qualified Defined
Slide 123: License & Support (L&S) historicals
License & Support (L&S) historicals $M 1Q22 2Q22 3Q22 4Q22 1Q23 TOTAL COMPANY REVENUE $447 $515 $461 $557 $516 L&S REVENUE $73 $138 $87 $170 $136 TOTAL COMPANY EX-L&S REVENUE $373 $377 $374 $387 $380 TOTAL COMPANY GROSS PROFIT (GAAP) $87 $148 $104 $190 $159 L&S GROSS PROFIT (GAAP) $47 $109 $60 $144
Slide 124: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation $M FY21 FY22 NET INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO UNISYS $ (448.5) $ (106.0) NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS (1.3) 1.1 INTEREST EXPENSE, NET OF INTEREST INCOME 1 27.6 20.0 PROVISION FOR INCOME TAX (11.9) 42.3 DEPRECIAT
Slide 125: Non-GAAP operating profit
Non-GAAP operating profit $M FY21 FY22 OPERATING PROFIT $ 154.0 $ 52.2 COST REDUCTION AND OTHER EXPENSES 1 35.3 104.7 POSTRETIREMENT EXPENSE 2 3.5 2.1 NON-GAAP OPERATING PROFIT $ 192.8 $ 159.0 REVENUE $ 2,054.4 $ 1,979.9 GAAP OPERATING PROFIT % 7.5% 2.6% NON-GAAP OPERATING PROFIT % 9.4% 8.0% 1. Incl
Slide 126: Unisys segment and solutions map
Unisys segment and solutions map SEGMENT / REPORTING NEXT-GEN SOLUTIONS TRADITIONAL SOLUTIONS Digital Workplace Modern Workplace Traditional Workplace Solutions (DWS) Digital Platforms & Infrastructure Cloud, Application & Applications Infrastructure Solutions (CA&I) “DP&A” Specialized Services & Li
Slide 127: Pension terminology
Pension terminology Funding terms Accounting terms IRS Minimum Funding Liabilities: projected future benefits, US GAAP Accounting Liabilities: projected future benefits, present present valued at either segment or full yield curve corporate valued at current market corporate discount rates discount
Slide 128: Definitions of non-GAAP financial metrics and other terms
Definitions of non-GAAP financial metrics and other terms Non-GAAP Information This presentation includes non-GAAP financial information such as non-GAAP operating profit, EBITDA, adjusted EBITDA, and revenue excluding License and Support. The Company’s non- GAAP financial measures exclude certain i
Slide 129: Thank you
Thank you Contact us: investor@unisys.com