Unisys Corporation New · NYSE:UIS
Unisys Corporation New — Unisys — Conference Presentation (September 2019)
22 slides from Unisys Corporation New's conference presentation, Sep 25, 2019
Slide 1: Company Presentation
Company Presentation September 25, 2019 Mike Thomson, Chief Financial Officer Courtney Holben, VP, Investor Relations www.unisys.com/investor
Slide 2: 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 3: Unisys Approach At-A-Glance
Unisys Approach At-A-Glance Delivering on our vision and mission Unisys Vision: Enhancing people’s lives through secure, reliable, advanced technology. Unisys Approach Unisys Mission Loyal Engaged Transformative Clients Associates Solutions To build high- • Live client centricity – our • Encourage c
Slide 4: Second Quarter 2019 Unisys Revenue Profile
Second Quarter 2019 Unisys Revenue Profile Percent of Second Quarter 2019 Non-GAAP Adjusted Revenue1 1. Numbers adjusted to exclude certain revenue relating to reimbursement from the company’s check processing JV partners for restructuring expenses © 2019 Unisys Corporation. All rights reserved. | 4
Slide 5: 2Q19 Financial Results
2Q19 Financial Results Adjusted Revenue Operating Profit Adjusted EBITDA ($M) Diluted Earnings ($M) Margin (%) and Margin (%) per Share Non-GAAP Non-GAAP Non-GAAP Non-GAAP 17.2% $129 $0.87 $747 12.0% 14.8% $667 8.3% $99 14.2% $0.39 $665 GAAP Non- GAAP 2Q18 2Q19 2Q18 2Q19 2Q18 2Q19 2Q18 2Q19 • Highes
Slide 6: Financial Trends
Financial Trends Revenue Growth Non-GAAP Operating Profit Margin Adjusted EBITDA Margin 8% 12% 18% 16.0% 5% 16% 15.3% 14.8% 3% 10% 13.9% 14% 14.4% 9.25% 1% 2% 8.9% 8.7% 11.8% 12% 7.9% (2%) 8% 8.25% (3%) 10% 6.2% 8% (7%) (6%) 6% 6% (10%) (12%) 4% 4% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2
Slide 7: Estimated Future Pension Cash Contributions Through 2028
Estimated Future Pension Cash Contributions Through 2028 $M U.S. Qualified Defined Benefit Plans All Other Plans $289 $286 $269 $40 $41 $229 $35 $213 $41 $32 $130 $106 $249 $245 $234 $49 $89 $188 $181 $39 $32 $81 $67 $57 $32 $32 $32 2018A 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 The funding
Slide 8: Illustrative Considerations for Mitigating Pension Risk
Illustrative Considerations for Mitigating Pension Risk Within Outside Plan Plan • Regulatory Relief • Plan Split • Legislative Relief • Managing Premiums • Accessing Capital Markets • Asset Management to Enhance Liquidity • Pension Buy-outs • In-kind Contributions • Pension Risk Transfers • Asset S
Slide 9: Pension Analysis — U.S. Contributions vs. U.S. Deficit
Pension Analysis — U.S. Contributions vs. U.S. Deficit • The Company looks at its pension obligations through two lenses: ⁃ Cash contributions (Liquidity view) ⁃ Balance Sheet position (Accounting view) • Two key drivers of each of these are: ⁃ Asset returns (RoA) ⁃ Interest rates • Asset returns ha
Slide 10: Impact of RoA & Interest Rates on U.S. Cash Contributions
Impact of RoA & Interest Rates on U.S. Cash Contributions • The directional impact of return on assets is inverse with respect to changes to cash contributions ⁃ The impact of a 3% difference in RoA vs. expected RoA would be a change in aggregate cash contributions of approximately $75 million1 • Th
Slide 11: Impact of RoA & Interest Rates on U.S. Accounting Deficit
Impact of RoA & Interest Rates on U.S. Accounting Deficit • A return 3% above or below the assumed return on the U.S. Plan assets will increase or decrease the deficit by approximately $95 million1 • A change in the discount rate of 25 basis points would inversely impact the U.S. liabilities by $104
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Slide 13: Appendix
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Slide 14: Revenue and Operating Profit
Schedule A: GAAP to Non-GAAP Reconciliation Revenue and Operating Profit $M 2Q18 2Q19 Reported revenue $667.4 $753.8 Restructuring reimbursement 0.0 (6.5) Non-GAAP adjusted revenue1 $667.4 $747.3 Operating profit (loss) $54.0 $87.0 Restructuring reimbursement 0.0 (6.5) Postretirement expense 0.9 0.8
Slide 15: EBITDA and Adjusted EBITDA
Schedule B: GAAP to Non-GAAP Reconciliation EBITDA and Adjusted EBITDA $M 2015 2016 2017 2018 Net income (loss) attributable to Unisys $(109.9) $(47.7) $(65.3) $75.5 Net income (loss) attributable to noncontrolling interests 6.7 11.0 (1.3) 3.4 Interest expense, net of interest income of $2.7, $2.7,
Slide 16: EBITDA and Adjusted EBITDA
Schedule B: GAAP to Non-GAAP Reconciliation EBITDA and Adjusted EBITDA $M 2Q18 2Q19 Net income (loss) attributable to Unisys $3.8 $26.2 Net income (loss) attributable to noncontrolling interests 2.2 3.6 Interest expense, net of interest income of $3.1, $2.9 respectively * 12.6 13.3 Provision for inc
Slide 17: Net Income and EBITDA as a percentage of revenue
Schedule C: GAAP to Non-GAAP Reconciliation Net Income and EBITDA as a percentage of revenue $M 2Q18 2Q19 Revenue $667.4 $753.8 Non-GAAP adjusted revenue 667.4 747.3 Net income (loss) as percentage of revenue 0.6% 3.5% Adjusted EBITDA as a percentage of Non-GAAP revenue 14.8% 17.2% © 2019 Unisys Cor
Slide 18: Earnings per Diluted Share
Schedule D: GAAP to Non-GAAP Reconciliation Earnings per Diluted Share $M except share and per share data 2Q18 2Q19 Net income (loss) attributable to Unisys Corporation common shareholders $3.8 $26.2 Post-retirement expense: pretax 19.2 23.6 tax 0.2 0.0 net of tax 19.4 23.6 Cost reduction and other
Slide 19: Free Cash Flow
Schedule E: GAAP to Non-GAAP Reconciliation Free Cash Flow $M 2Q18 2Q19 Cash provided by (used for) operations $(11.7) $50.9 Capital expenditures (44.9) (39.6) Free cash flow $(56.6) $11.3 Postretirement funding 42.0 24.6 Cost reduction funding 10.0 12.4 Adjusted free cash flow $(4.6) $48.3 © 2019 U
Slide 20: Reconciliation of Segment Reporting
Schedule F: GAAP to Non-GAAP Reconciliation Reconciliation of Segment Reporting $M 2Q18 2Q19 Total Services Revenue $586.7 $653.4 Restructuring reimbursement 0.0 (6.5) Total Services non-GAAP adjusted Revenue $586.7 $646.9 Services gross profit $96.7 $116.0 Restructuring reimbursement 0.0 (6.5) Non-
Slide 21: Non-GAAP and Other Information
Non-GAAP and Other Information Although appropriate under generally accepted accounting principles (“GAAP”), the company’s results reflect charges that the company believes are not indicative of its ongoing operations and that can make its profitability and liquidity results difficult to compare to
Slide 22: Non-GAAP and Other Information
Non-GAAP and Other Information Although appropriate under generally accepted accounting principles (“GAAP”), the company’s results reflect charges that the company believes are not indicative of its ongoing operations and that can make its profitability and liquidity results difficult to compare to