Dxc Technology Company · NYSE:DXC
Dxc Technology — Q2 FY2020 Earnings Presentation
18 slides from Dxc Technology's earnings presentation, Nov 11, 2019
Slide 1: 2nd Quarter FY 2020 Financial Tables
2nd Quarter FY 2020 Financial Tables November 11, 2019
Slide 2: Non-GAAP financial measures
Non-GAAP financial measures We present non-GAAP financial measures of performance which are derived from the unaudited condensed consolidated statements of operations of DXC. These non-GAAP financial measures include earnings before interest and taxes (“EBIT”), adjusted EBIT, non-GAAP income before
Slide 3: Consolidated statements of operations
Consolidated statements of operations (preliminary and unaudited) in millions, except per-share amounts Q2 FY20 Q2 FY19 YTD FY20 YTD FY19 Revenue $ 4,851 $ 5,013 $ 9,741 $ 10,295 Costs of services 3,679 3,518 7,301 7,385 Selling, general and administrative 489 569 996 1,009 Depreciation and amortiza
Slide 4: Reconciliation of non-GAAP results
Reconciliation of non-GAAP results Q2 FY20 Transaction, Amortization of Restructuring Separation and Goodwill Gain on Arbitration Non-GAAP (in millions except EPS) GAAP Acquired Intangible Tax Adjustment Costs Integration-Related Impairment Losses Award Results Assets Costs (Loss) income from contin
Slide 5: 2nd quarter results
2nd quarter results Q2 YTD FY20 FY19 FY20 FY19 Revenue ($M) $ 4,851 $ 5,013 $ 9,741 $ 10,295 – YoY Growth – GAAP (3.2%) (5.4%) – YoY Growth – cc (0.8%) (2.6%) – QtQ Growth – GAAP (0.8%) — – QtQ Growth – cc 0.2% — Adjusted EBIT ($M) 529 799 1,181 1,602 Adjusted EBIT Margin (%) 10.9% 15.9% 12.1% 15.6%
Slide 6: Global Business Services (GBS)
Global Business Services (GBS) Q2 FY20 Q2 FY19 YTD FY20 YTD FY19 Revenue ($M) $ 2,285 $ 2,111 $ 4,444 $ 4,324 – YoY Growth – GAAP 8.2% 2.8% – YoY Growth – cc 10.5% 5.4% – QtQ Growth – GAAP 5.9% — – QtQ growth – cc 6.7% — GBS Profit ($M) 359 400 725 803 GBS Profit Margin (%) 15.7% 18.9% 16.3% 18.6% B
Slide 7: Global Infrastructure Services (GIS)
Global Infrastructure Services (GIS) Q2 FY20 Q2 FY19 YTD FY20 YTD FY19 Revenue ($M) $ 2,566 $ 2,902 $ 5,297 $ 5,971 – YoY Growth – GAAP (11.6%) (11.3%) – YoY Growth – cc (9.1%) (8.3%) – QtQ Growth – GAAP (6.1%) — – QtQ growth – cc (5.0%) — GIS Profit ($M) 243 473 583 947 GIS Profit Margin (%) 9.5% 1
Slide 8: Financial highlights
Financial highlights Q2 FY20 YTD FY20 Cash Flow ► Adjusted Free Cash Flow $739M $813M Performance ► Cap Ex — Including Payments on Capital Leases $342M $699M ► Cap Ex as a % of Revenue 7.1% 7.2% Q2 FY20 YTD FY20 Capital to Capital to ► Cash Dividends $56M $107M Shareholders Shareholders $250M $650M
Slide 9: Bookings
Bookings(1) FY19 FY20 $B $5.7 $5.8 $4.7 $2.3 $4.2 $2.9 $3.8 $2.2 $2.4 $1.9 $3.4 $2.5 $2.9 $1.8 $1.9 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 GBS Global Business Services GIS Global Infrastructure Services 1 The summation of the quarter bookings number may not equal the full-year number, due to roundi
Slide 10: Non-GAAP reconciliations
Non-GAAP reconciliations EBIT and Adjusted EBIT (in millions) Q2 FY20 Q2 FY19 YTD FY20 YTD FY19 Net (loss) income $ (2,115) $ 259 $ (1,947) $ 525 Income from discontinued operations, net of taxes - - - (35) Income tax expense 116 73 154 202 Interest income (67) (33) (97) (65) Interest expense 104 83
Slide 11: Non-GAAP reconciliations
Non-GAAP reconciliations Segment profit (in millions) Q2 FY20 Q2 FY19 YTD FY20 YTD FY19 GBS profit $ 359 $ 400 $ 725 $ 803 GIS profit 243 473 583 947 All other loss (73) (74) (127) (148) Interest income 67 33 97 65 Interest expense (104) (83) (195) (168) Restructuring costs (32) (157) (174) (342) Tr
Slide 12: Q2 FY20 non-GAAP results
Q2 FY20 non-GAAP results Transaction, Amortization of Goodwill Gain on Restructuring Separation and Non-GAAP (in millions except EPS) GAAP Acquired Impairment Arbitration Tax Adjustment Costs Integration- Results Intangible Assets Losses Award Related Costs Cost of services (excludes depreciation an
Slide 13: YTD FY20 non-GAAP results
YTD FY20 non-GAAP results Transaction, Amortization of Goodwill Gain on Restructuring Separation and Non-GAAP (in millions except EPS) GAAP Acquired Impairment Arbitration Tax Adjustment Costs Integration- Results Intangible Assets Losses Award Related Costs Cost of services (excludes depreciation a
Slide 14: Q2 FY19 non-GAAP results
Q2 FY19 non-GAAP results Transaction, Amortization of Restructuring Separation and Non-GAAP (in millions except EPS) GAAP Acquired Costs Integration- Results Intangible Assets Related Costs Cost of services (excludes depreciation and amortization and restructuring costs) $ 3,518 $ - $ - $ - $ 3,518
Slide 15: YTD FY19 non-GAAP results
YTD FY19 non-GAAP results Transaction, Amortization of Restructuring Separation and Tax Non-GAAP (in millions except EPS) GAAP Acquired Costs Integration- Adjustment Results Intangible Assets Related Costs Cost of services (excludes depreciation and amortization and restructuring costs) $ 7,385 $ -
Slide 16: Adjusted free cash flow
Adjusted free cash flow (in millions) Q2 FY20 YTD FY20 Net cash provided by operating activities $ 1,651 $ 1,585 Net cash used in investing activities(1) (225) (1,972) Acquisitions, net of cash acquired 10 1,921 Payments on capital leases and other long-term asset financings (211) (421) Payments on
Slide 17: Non-GAAP and other definitions
Non-GAAP and other definitions Segment profit: Segment revenue less costs of services, segment selling, general and administrative, depreciation and amortization, and other income, excluding the movement in foreign currency exchange rates on our foreign currency denominated assets and liabilities an
Slide 18: DXC.technology
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