Exela Technologies, Inc. · OTC:XELA

Exela Technologies — Q4 2020 Earnings Presentation

26 slides from Exela Technologies's earnings presentation, Mar 16, 2021

  1. Slide 1: Preliminary Fourth Quarter and 2020 Annual Results

    © 2021 EXELA TECHNOLOGIES, INC © 2021 EXELA TECHNOLOGIES, INC Unaudited Financial Results Preliminary Fourth Quarter and 2020 Annual Results “The Digital Journey Continues” March 2021

  2. Slide 2: Today's presenters & Exela snapshot

    © 2021 EXELA TECHNOLOGIES, INC © 2021 EXELA TECHNOLOGIES, INC Unaudited Financial Results PROPRIETARY INFORMATION Today’s presenters & Exela snapshot Ron Cogburn Chief Executive Officer Shrikant Sortur Chief Financial Officer 2 Industry Trends • Digital is driving growth in B2B and B2C leaving the e

  3. Slide 3: Notices: Forward-Looking Statements

    © 2021 EXELA TECHNOLOGIES, INC Notices 3 Forward - Looking Statements Certain statements included in this presentation are not historical facts but are forward - looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward looking

  4. Slide 4: 2020 results highlights and progress on strategic initiatives

    © 2021 EXELA TECHNOLOGIES, INC 4 • Revenue of $1.29B, a 17% decrease yoy primarily due to COVID - 19, transition revenue and sale of assets. • Digital Assets Group sales grew to comprise 8% of the total revenue in FY 2020 up from 7% in the YTD Q3 2020 period • Recently announced $90M TCV 10 - yr con

  5. Slide 5: Exela at a glance

    © 2021 EXELA TECHNOLOGIES, INC 5 Exela at a glance Leader in business process management solutions globally PROVEN TRACK RECORD 30+ Years of Experience in Business Process Automation 4,000+ Global Customers Across 14 Industry Verticals 60+ Percent of the Fortune ® 100 Partners with Exela 1,100+ Faci

  6. Slide 6: Significant whitespace with under 1% of TAM penetration

    © 2021 EXELA TECHNOLOGIES, INC Significant whitespace with under 1% of TAM penetration 6 (1) Sourced from 2017 Gartner and Nomura Instinet research at time of Exela creation. 2022 TAM $207B Public Sector $22B Tech & Manufacturing $29B P&C / Insurance $15B Banking & Financial Services $54B Commercial

  7. Slide 7: Solutions positioned for growth

    © 2021 EXELA TECHNOLOGIES, INC All Other Customers 28% Solutions positioned for growth 7 Revenue Breadth, Diversity, Low Industry & Customer Concentration and Referenceable Solutions United States 82% Europe 16% Other 2% Banking & Financial Services 27% Tech & Manufacturing 6% Legal 5% Healthcare 23

  8. Slide 8: Key part of the critical supply chain infrastructure

    © 2021 EXELA TECHNOLOGIES, INC Key part of the critical supply chain infrastructure in multiple countries 8 Exela Presence Nuclear Reactors, Materials & Waste Defense Industrial Base Mailroom & Facilities Mgmt. Medical Records & RCM Procure - to - Pay Solutions Check Clearing & Loan Origination Clai

  9. Slide 9: Technology and services reach a majority of the US population

    © 2021 EXELA TECHNOLOGIES, INC Unaudited financial results 9 Exela’s technology and services reach a majority of the US population FEDERAL STATE HEALTHCARE BANKING LEGAL COMMERCIAL All Tax Payers (non - electronic) 95+ Million Citizens 200M+ Subscribers 20M+ Veterans 100M+ Accounts 50% US Deposits 1

  10. Slide 10: Exela's Top Customers – Long Tenured and Growing

    © 2021 EXELA TECHNOLOGIES, INC 10 Exela’s Top 15 Customers – Long Tenured and Growing (1) ($ in millions) Description Tenure (in years) Engagement Model Customer 1 One of the Top 5 US Banks 14 Sole / Dual Customer 2 United States Department of Veteran Affairs 13 Dual Customer 3 One of the Top 5 US H

  11. Slide 11: What that means for Exela and its customers

    © 2021 EXELA TECHNOLOGIES, INC PROPRIETARY INFORMATION © 2021 EXELA TECHNOLOGIES, INC What that means for Exela and its customers Building digital roads to repair customers’ broken processes 11 ~5 billion transactions annually Growing TAM Untapped potential Our mission is to grow as a trusted partne

  12. Slide 12: New business won as % of revenue in line with trends

    © 2021 EXELA TECHNOLOGIES, INC In 2020, New business won as % of revenue remained in - line with historical trends (1) 12 ($ in millions) FY 2018A Q1 2019A Q2 2019A Q3 2019A Q4 2019A FY 2019A Q1 2020A Q2 2020A Q3 2020A Q4 2020A FY 2020A New Business $234 $68 $53 $48 $38 $207 $58 $35 $30 $60 $182 Ren

  13. Slide 13: Business has proven resilient during COVID-19

    © 2021 EXELA TECHNOLOGIES, INC Exela's business has proven to be resilient during COVID - 19 13 ` Agile business model Result Revenue & Business Model • Customers consider adopting the Digital Asset Group and Business Process Automation models for our solutions and services • Flexibility in the busi

  14. Slide 14: Digital foundation enables easier process integration

    © 2021 EXELA TECHNOLOGIES, INC Exela’s digital foundation enables easier process integration $1.3 Billion revenue in 2020 delivered by fully operational 7 - Layer stack 14 Desktop EDI Web Mobile DigitalNow ® End - to - End Process Platform Integrations Process Components Intelligent Workflow Automat

  15. Slide 15: Capabilities go beyond one class of competitor

    © 2021 EXELA TECHNOLOGIES, INC Exela’s capabilities go beyond one class of competitor 15 Bills and Payments Enterprise Software BPO

  16. Slide 16: Reported accounting segment snapshot as of FY 2020

    © 2021 EXELA TECHNOLOGIES, INC Reported accounting segment snapshot as of FY 2020 16 Information & Transaction Processing Solutions Healthcare Solutions Legal & Loss Prevention Services Segment Overview • Enterprise Information Management • Banking, Finance & Accounting • Payment, and Public Sector

  17. Slide 17: Q4 2020 Preliminary Income statement and Adjusted EBITDA highlights

    © 2021 EXELA TECHNOLOGIES, INC Q4 2020 Preliminary Income statement and Adjusted EBITDA highlights 17 Revenue: Exceeded the guidance range for the Q4 2020 quarter ($300 - 310M). 20% decline yoy driven by lower transaction volumes since mid - March as a result of COVID - 19, transition revenue and sa

  18. Slide 18: FY 2020 Preliminary Income statement and Adjusted EBITDA highlights

    © 2021 EXELA TECHNOLOGIES, INC FY 2020 Preliminary Income statement and Adjusted EBITDA highlights 18 Revenue: Exceeded the quarterly guidance range for all the 2020 quarters despite the uncertainty due to the pandemic. 17% decline yoy driven by lower transaction volumes since mid - March as a resul

  19. Slide 19: Strong revenue visibility driven by recurring revenue

    © 2021 EXELA TECHNOLOGIES, INC Strong revenue visibility driven by recurring revenue 19 19 (1) Calculated by excluding certain Customers exited as part of the transition revenue. Calculated as annualized contract val ue (“ACV”) of contracts renewed as percentage of ACV of total contracts up for rene

  20. Slide 20: Operating leverage improvement - Savings program update

    © 2021 EXELA TECHNOLOGIES, INC Operating leverage improvement - Savings program update 20 20 20 Note: Completed initiatives represent $243.6 million of run rate savings across Headcount ($152.5 million), Vendor ($76.4 mil lio n), and Lease ($14.7 million) saving initiatives. Recently Executed Saving

  21. Slide 21: 2021 Financial Outlook and Operating Model Considerations

    © 2021 EXELA TECHNOLOGIES, INC 2021 Financial Outlook and Operating Model Considerations 21 Revenue • Normalization of pre - COVID - 19 volumes expected in 2021 • Renewal rates to return to historical levels pre - COVID - 19 • Continued momentum in winning new business Estimated Range: $1,250 - $1,3

  22. Slide 22: Exela Highlights

    © 2021 EXELA TECHNOLOGIES, INC PROPRIETARY INFORMATION © 2021 EXELA TECHNOLOGIES, INC Exela Highlights 22 • Category - leading platform in the Business Process Management industry • Well - positioned in large, information - intensive industries • Digital foundation enabling technology - led solution

  23. Slide 23: Appendix / Reference

    © 2021 EXELA TECHNOLOGIES, INC 23 Appendix / Reference

  24. Slide 24: Reconciliation of non-GAAP measures – Revenue and Adj EBITDA

    © 2021 EXELA TECHNOLOGIES, INC Reconciliation of non - GAAP measures – Revenue and Adj EBITDA 24 Non-GAAP constant currency revenue reconciliation 31-Dec-20 31-Dec-19 31-Dec-20 31-Dec-19 Revenues, as reported (GAAP) $314.1 $393.6 $1,292.6 $1,562.3 Foreign currency exchange impact (1) (4.2) (3.4) Rev

  25. Slide 25: Reconciliation of non-GAAP measures – Revenue and Adj EBITDA Margin

    © 2021 EXELA TECHNOLOGIES, INC Reconciliation of non - GAAP measures – Revenue and Adj EBITDA Margin 25 31-Dec-20 31-Dec-19 31-Dec-20 31-Dec-19 Revenues, as reported (GAAP) $314.1 $393.6 $1,292.6 $1,562.3 (-) Postage & postage handling 54.1 70.1 230.0 275.3 Revenue - Net of pass through (Non-GAAP) $

  26. Slide 26: Additional Details: Liquidity

    © 2021 EXELA TECHNOLOGIES, INC Additional Details 26 ($ in millions) As of December 31, 2020 As of March 12, 2021 Liquidity (1) including cash and availability under global credit facilities $107.8 $60.7 Committed and undrawn under existing securitization facility 53.0 53.0 Total $160.8 $113.7 Note:

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