Unisys Corporation New · NYSE:UIS
Unisys Corporation New — Q4 2024 Earnings Presentation
30 slides from Unisys Corporation New's earnings presentation, Feb 19, 2025
Slide 1: Fourth Quarter & Full-Year 2024 Financial Results
Fourth Quarter & Full-Year 2024 Financial Results i unisys Peter Altabef Chair & Chief Executive Officer Deb McCann Chief Financial Officer FEBRUARY 18, 2025
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation contains forwarctlooking 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 ca
Slide 3: TTM: Trailing-Twelve-Months
*TTM: Trailing-Twelve-Months
Slide 4: $2,015 $2,008 $558 $545 $1,586 $1,577 $413 $394
$2,015 $2,008 $558 $545 $1,586 $1,577 $413 $394
Slide 5: Revenue mix by segment, region and industry
ECS 33% CA&I 26% DWS 26% All Other 15% US & Canada 44% EMEA 29% Asia Pacific 14% Latin America 13% Commercial 35% Public Sector 33% Financial Services 32%
Slide 6: Segment Revenue ($m)
Segment Revenue ($m) 4Q 24 FY 24 DWS $139 $128 2023 2024 CA& $139 $132 2023 2024 ECS $203 $209 2023 2024 (8.2%) in constant currency Primarily driven by lower field services volume with existing clients $546 $524 2023 2024 (5.2%) in constant currency Primarily driven by lower hardware revenue and ti
Slide 7: Gross Margins ($m)
Gross Margins ($m) 4Q 24 32.5% | 32.1% 16.5% | 15.7% 2023 2024 2023 2024 Total Company Ex-L&s! Total company and Ex-L&S gross margin declines were primarily due to higher cost reduction charges compared to the prior year U 1See Appendix for reconciliation of non-GAAP measures FY 24 2023 2024 2023 20
Slide 8: Segment Gross Margins ($m)
Segment Gross Margins ($m) 4Q 24 FY 24 DWS 15.3% 15.9% 2023 2024 CA&l 2023 2024 ECS 2023 2024 Margin expansion primarily driven by delivery modernization and efficiency initiatives 14.0% 15.7% 2023 2024 Margin decline primarily driven by lower hardware revenue and volume with existing clients 2023 2
Slide 9: $176 $286 $292 $64 $100 $141 $63 $91 $44 $49 $97 $77 $30 3
$176 $286 $292 $64 $100 $141 $63 $91 $44 $49 $97 $77 $30 2023 2024 2023 2024 ($193) ($165) ($431)
Slide 10: 4Q net income includes a gain of $40 million from litigation settlement
$77 $135 $56 $74 $23 $4 $55 ($5) 4Q net income includes a gain of $40 million related to a favorable settlement of a litigation matter, $15 million of which was received in 4Q24 and the remaining $25 million of which is due mid-2025
Slide 11: 4Q24 & FY24 EBITDA and Cash Flow Detail
4Q24 & FY24 EBITDA and Cash Flow Detail $m 4024 4Q23 FY24 FY23 EBITDA’ $90.3 ($103.6) $39.8 ($204.5) ADJUSTED EBITDA' $914 $100.4 $2921 $2859 ADJUSTED EBITDA MARGIN" 16.8% 18.0% 14.5% 14.2% OPERATING CASH FLOW $76.6 $ 23.0 $135. $74.2 CAPITAL EXPENDITURES ($ 20.9) ($ 19.0) ($79.8) ($787) FREE CASH F
Slide 12: Leverage Detail
Leverage Detail $M DECEMBER 31, 2024 SENIOR SECURED NOTES! $ 485.0 FINANCE LEASES AND OTHER DEBT 11.6 TOTAL DEBT $ 496.6 GLOBAL NET PENSION DEFICIT (AS OF DEC 31, 2024) 750.2 TOTAL DEBT INCLUDING PENSION DEFICIT $ 1,246.8 CASH $ 376.5 NET LEVERAGE $120.1 NET LEVERAGE INCLUDING PENSION DEFICIT $ 870.
Slide 13: Defined Benefit Plans Update
Defined Benefit Plans Update Global GAAP pension deficit increased by approximately $50 million to ~$750 million, primarily driven by the impact of tightening credit spreads on U.S. assets and U.S. liabilities. In 2024, we had one U.S. annuity purchase which reduced global liabilities by approximate
Slide 14: All Other Plans and pension funding notes
• • 1 1 All Other Plans includes all international defined benefit plans and our U.S. non-qualified defined benefit plan. Note: The funding estimates for our U.S. qualified defined benefit pension plans are based on estimated asset returns and the funding discount rates used for the U.S. qualified d
Slide 15: Financial Guidance
Financial +0.5% to +2.5% 6.5% to 8.5% Revenue Growth in Non-GAAP Operating G U id a N Ce Constant Currency Profit Margin PME 828 Guidance Assumptions & Other 2025 Expectations + Constant currency revenue guidance translates to reported revenue growth of (1.9%) to +0.1% based on January 31, 2025, for
Slide 16: 2025 Outlook: The Unisys Transformation
The Unisys Transformation 25 Outl Accelerating Ex-L&S Growth Positive Inflection inNew Improved Ex-L&S Logo Signings Profitability Pre-pension Free Cash Continued SG&A Flow of $82M, up $39M efficiencies year-over-year Leader Recognition in Key Analyst & Advisor Reports Enhanced Pre-Pension BS Expans
Slide 17: Opportunity: Grow Ex-L&S, expand profitability, improve cash flow
ES lv BY me Grow Ex-L&S Accelerate Invest in our core revenue growth rate L&S platforms Building awareness Through higher-value Leveraging expertise in Uu 4 and recognition of our solutions including hybrid compute to solutions & capabilities Al-related services increase value for clients Opportu Nn
Slide 18: How Unisys enables enterprise AI
How Unisys enables enterprise Al A comprehensive, start-to-future Al portfolio with a pragmatic approach Al Center of Excellence 9 Data preparation & transformation | Governance & sec! Data Services Data strategy | Data quality & analytics | Risk assessme High-impact business outcomes Holistic ecosy
Slide 19: Appendix
Appendix Us unisys
Slide 20: Revenue mix by segment, region and industry
ECS 38% CA&I 24% DWS 24% All Other 14% US & Canada 44% EMEA 28% Asia Pacific 15% Latin America 13% Commercial 36% Public Sector 34% Financial Services 30%
Slide 21: Potential Economic Benefit of Tax Assets
Potential Economic Benefit of Tax Assets FUTURE AVAILABLE $m DESCRIPTION NET DEFERRED TAX REDUCTIONS IN TAXABLE ASSETS! INCOME U.S. NOLS AND TAX CREDITS: NET OPERATING LOSS - FEDERAL & STATE $536 $1,617 TAX CREDITS 91 435 PENSION AND OTHER: PENSION 150 600 OTHER DEFERRED TAX ASSETS 120 479 TOTAL AVA
Slide 22: Excluding License and Support (Ex-L&S)
Excluding License and Support (Ex-L&S) $M 4Q24 4Q23 FY24 FY23 REVENUE $545.4 $ 557.6 $2,008.4 $2,015.4 L&S REVENUE 1517 144.3 431.5 429.1 EX-L&S NON-GAAP REVENUE $ 3937 $ 413.3 $1,576.9 $1,586.3 GROSS PROFIT $175.0 $ 181.2 $ 585.9 $ 551.3 L&S GROSS PROFIT 113.1 112.8 308.3 311.3 EX-L&S NON-GAAP GROS
Slide 23: Non-GAAP Operating Profit
Non-GAAP Operating Profit $M 4Q24 4Q23 FY24 FY23 GAAP OPERATING PROFIT (LOSS) $ 48.6 $ 44.0 $974 $76.9 GOODWILL IMPAIRMENT - - 39.1 - CERTAIN LEGAL MATTERS! 08 14 9.0 35.2 COST REDUCTION AND OTHER EXPENSES? 13.6 84 29.5 274 PENSION AND POSTRETIREMENT EXPENSE! 0.3 0.2 14 1.3 NON-GAAP OPERATING PROFIT
Slide 24: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 4024 4023 FY24 FY23 NET INCOME (LOSS) ATTRIBUTABLE TO UNISYS CORPORATION $30.0 ($ 165.3) ($ 193.4) ($ 430.7) NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 05 Ww 0.2 3.6 INTEREST EXPENSE, NET OF INTEREST INCOME OF $5.8, $6.3, $23.2 AND 24 16 87 45 $26.3, RE
Slide 25: Non-GAAP Net Income
Non-GAAP Net Income $M EXCEPT SHARE AND PER SHARE DATA 4Q24 4Q23 FY24 FY23 NET INCOME (LOSS) ATTRIBUTABLE TO UNISYS CORPORATION $30.0 ($ 165.3) ($193.4) ($ 430.7) PENSION & POSTRETIREMENT EXPENSE PRETAX 4 174.4 182.2 388.5 TAX 0.2 (0.1) 0.6 (0.7) NET OF TAX $10.9 $174.5 $181.6 $ 389.2 GOODWILL IMPAI
Slide 26: Non-GAAP Diluted Earnings Per Share
Non-GAAP Diluted Earnings Per Share $M EXCEPT SHARE AND PER SHARE DATA 4Q24 4Q23 FY24 FY23 NON-GAAP NET INCOME ATTRIBUTABLE TO UNISYS CORPORATION $ 24.2 $35.4 $321 $417 WEIGHTED AVERAGE SHARES (THOUSANDS) 69,458 68,402 69,199 68,254 PLUS INCREMENTAL FROM ASSUMED VESTING OF EMPLOYEE STOCK PLANS 3,480
Slide 27: Adjusted Free Cash Flow
Adjusted Free Cash Flow $M 4Q24 4Q23 FY24 FY23 CASH PROVIDED BY OPERATIONS $76.6 $ 23.0 $135.1 $74.2 ADDITIONS TO MARKETABLE SOFTWARE (10.8) (13.1) (47.5) (46.0) ADDITIONS TO PROPERTIES (5.0) (5.9) (16.0) (21.3) ADDITIONS TO OUTSOURCING ASSETS (5.1) - (16.3) (11.4) FREE CASH FLOW $557 $4.0 $55.3 ($
Slide 28: Non-GAAP Net Income Margin
Non-GAAP Net Income Margin $M 4Q24 4Q23 FY24 FY23 REVENUE $545.4 $5576 $2,008.4 $2,015.4 NET INCOME (LOSS) ATTRIBUTABLE TO UNISYS CORPORATION $300 ($165.3) ($193.4) ($4307) NON-GAAP NET INCOME (LOSS) ATTRIBUTABLE TO UNISYS $24.2 $354 $321 $417 NET INCOME (LOSS) ATTRIBUTABLE TO UNISYS CORPORATION 5.5
Slide 29: Definitions of Non-GAAP Financial Metrics
Definitions of Non-GAAP Financial Metrics Non-GAAP operating profit - This measure excludes pretax pension and postretirement expense, pretax goodwill impairment charge and pretax charges or gains associated with certain legal matters related to settlements, professional services and legal fees, inc
Slide 30: Definitions of Other Metrics and Terms
Definitions of Other Metrics and Terms Constant currency - A significant amount of the company’s revenue is derived from international operations. As a result, the company’s revenue has been and will continue to be affected by changes in the U.S. dollar against major international currencies. The co
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