Slide 1: Disclaimer: Forward-Looking Statements
Disclaimer 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 statements generally are accompani
Slide 2: Global business process automation leader
EXELA TECHNOLOGIES, INC. IS A GLOBAL BUSINESS PROCESS AUTOMATION leader combining industry-specific and industry-agnostic enterprise software and solutions with decades of experience. Our BPA suite of solutions are deployed in banking, healthcare, insurance and other industries to support mission cr
Slide 3: Presenters: CEO and CFO
4 Ron Cogburn Chief Executive Officer Jim Reynolds Chief Financial Officer
Slide 4: Reaffirming 2018 and long-term guidance backed by strong Q2 2018 results
REAFFIRMING 2018 AND LONG-TERM GUIDANCE(1) BACKED BY STRONG Q2 2018 RESULTS 5 Exela at a glance The company has not forecasted net income/(loss) on a forward-looking basis due to the high variability and difficulty in predicting certain items that affect GAAP net income/(loss). Adjusted EBITDA shoul
Slide 5: Exela is growing across customers and geographies
Exela is growing across customers and geographies 8 CUSTOMERS OVER $25 MILLION IN ANNUAL REVENUE BROAD REVENUE BASE TOP 150 CUSTOMERS 66% OF REVENUE ~200 CUSTOMERS GENERATING BETWEEN $1 - $5 MILLION IN ANNUAL REVENUE REVENUE GROWTH IS ORGANIC AS WELL AS FROM TUCK-IN ACQUISITION (1) Pro forma Q2 2017
Slide 6: Exela revenue is diversified across industries
7107 Exela revenue is diversified across industries Healthcare The Top 5 Healthcare Payers Over 900 Healthcare Providers Insurance 14/20 top U.S. Insurance Companies Over 50 Global Insurance Companies Over 60% of Fortune® 100 Public Sector Over 400 state and local government organization in the U.S.
Slide 7: Rising automation delivers lower variable cost
Revenue › Robotics 8 Rising automation delivers lower variable cost $18k/FTE 2007 Tech Cognitive $+70k/FTE 2018 › $57k/FTE +16.8% $67k/FTE $70k/FTE +6.5% › › › Pro forma revenue reconciliations for TTM 2018, 2016 and 2017 available on slide 19. (1) ~12,000 Employees in North America ~2,000 Employees
Slide 8: Rising automation delivers lower variable cost
Rising automation delivers lower variable cost Excluding acquisition, total headcount down 7% S7OM/FTE H i 0%) E JAL BREAKDOWN — S67K/FTE ioe H { ~12,000 H vee 1 Employees in North i 1 America ssmiurte H sian. } ~2,000 {Employees in Europe i ~8,000 2016 2017 aoerrm(a2) {| Employees in Asia June 30,2
Slide 9: Exela delivers strong financial performance year-over-year
Exela delivers strong financial performance year-over-year 10 A reconciliation of pro forma Q2 2017 revenue is available on slide 21. See EBITDA and Adjusted EBITDA reconciliations for additional detail on slide 18 and slide 20. Revenue(1)+17.3% Revenue growth EBITDA growth Fewer EBITDA add-backs ($
Slide 10: Q2 2018 vs. pro forma Q2 2017 and Q1 2018 performance: revenue
11 Q2 2018 vs. pro forma Q2 2017 and Q1 2018 performance A Revenue ITPS revenue grew 22.1% year-over-over year was driven primarily by increased volumes and expansion of services within new and existing customers. The acquisition of Asterion International contributed 7.7% of the growth in ITPS reven
Slide 11: Q2 2018 vs. pro forma Q2 2017 and Q1 2018 performance: net loss
12 Q2 2018 vs. pro forma Q2 2017 and Q1 2018 performance NET LOSS OF ($25.2) MILLION COMPARED TO A Q2 2017 NET LOSS OF ($27.9) MILLION. B Cost of Revenue – is impacted by ramp up of large contracts, offset by flow through of cost savings initiatives. C SG&A – decreased by 7.1% due to flow through of
Slide 12: Exela generated $47.4 million of net cash flow during Q2 2018
Exela generated $47.4 million of net cash flow(1) during Q2 2018 (1) Net cash flow is defined as the grand total of the net cash (used in) provided by operating activities, net cash (used in) provided by investing activities, net cash (used in) provided by financing obligations and effect of exchang
Slide 13: Low intensity capex model
14 Low intensity capex model Capex(1) $ and as % of Revenue 2.0% 2.9% 3.9% (1) Pro forma capital expenditure reconciliations for 2016 and 2017 available on slide 19. Investments in capital expenditures in prior periods continue to provide a benefit to current and future spend. $51.5 $42.4 $16.1 2016
Slide 14: Capital structure and other highlights
($ in millions) Total liquidity $139.7 Total cash(1) $60.3 Net debt $1,343.2 Undrawn revolving credit facility of $100 million with $20.6 million reserved for letters of credit Share buyback plan for employee stock incentive plans: Approved share buyback up to 5,000,000 shares Total shares purchased
Slide 15: Reaffirms 2018 and long-term guidance
Reaffirms 2018 and long-term guidance 2018 guidance Revenue range $1.55 billion to $1.58 billion, year-over-year growth of 6.5% to 8.5% on a pro forma basis. Adjusted EBITDA range $295 million to $310 million, year-over-year growth of 20% to 26% on a pro forma basis. Further Adjusted EBITDA(2) in th
Slide 16: 2018 Business outlook
2018 Business outlook” Reaffirms 2018 and long-term guidance 2018 guidance * Revenue range $1.55 billion to $1.58 billion, year-over-year growth of 6.5% to 8.5% on a pro forma basis. * Adjusted EBITDA range $295 million to $310 million, year-over-year growth of 20% to 26% on a pro forma basis. * Fur
Slide 17: Adjusted EBITDA reconciliation – Q1 2018 and Q2 2018
Adjusted EBITDA reconciliation – Q1 2018 and Q2 2018 18 Q2 2018 Q1 2018 Net loss ($25.2) ($24.0) Taxes 1.6 4.0 Interest expense 38.5 38.0 Depreciation and amortization 36.4 38.0 EBITDA $51.3 $56.1 Optimization and restructuring expenses 13.0 14.5 Transaction related costs 0.8 1.1 Non-cash charges 5.
Slide 18: Revenue and capex reconciliation – pro forma TTM'18, FY2017, FY2016
Revenue and Capital expenditures reconciliation – pro forma TTM’18, FY2017 and FY2016 19 (1) Financial results for FY 2016 do not include contribution for the first nine months from the acquisition of TransCentra which closed on September 25, 2016. As Reported (1) Novitex Pro Forma Revenue - FY 2018
Slide 19: Adjusted EBITDA reconciliation – pro forma Q2 2017
Adjusted EBITDA reconciliation – pro forma Q2 2017 20 (1) Net loss for the period is presented on the basis of the previous debt structure of the respective standalone companies that became Exela as a result of the Business Combination. As of July 12, 2017, those debt structures were replaced with n
Slide 20: Revenue and expense reconciliation – pro forma Q2 2017
Revenue and expense reconciliation – pro forma Q2 2017 21 (1) Net loss for the period is presented on the basis of the previous debt structure of the respective standalone companies that became Exela as a result of the Business Combination. As of July 12, 2017, those debt structures were replaced wi
Slide 21: SG&A including related party expense – pro forma Q2 2017
SG&A including related party expense – pro forma Q2 2017 22 (1) Net loss for the period is presented on the basis of the previous debt structure of the respective standalone companies that became Exela as a result of the Business Combination. As of July 12, 2017, those debt structures were replaced
Slide 22: Net cash flow reconciliation
Net cash flow reconciliation 23 ($ in millions) Six months ended June 30, 2018 Three months ended March 31, 2018 Three months ended June 30, 2018 Net cash provided by operating activities $48.3 ($20.1) $68.3 Cash flows from investing activities Purchase of property, plant and equipment (10.2) (6.0)
Slide 23: Net cash flow reconciliation
Net cash flow reconciliation ‘As Reported on 10-Q Six months Three months Three months (sina fended June ended March ended June 30,2018 3,208 30,2018, [Net cash provided by operating activities sas (s204) $683 ‘Cash flows om investing otivties Purchase of property, plant and equipment 02) 60 a Addon