Slide 1: Disclaimer: Forward Looking Statements
Disclaimer 2 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 accompa
Slide 2: Agenda
Agenda 3 Exela Technologies 4Q 2017 & FY 2017 Review Financial Performance and Business Strategy Conclusion and Q&A 2 1 3
Slide 3: Q4 2017 and 2017 Review
Q4 2017 and 2017 REVIEW RON COGBURN Chief Executive Officer
Slide 4: Exela-at-a-Glance
Exela-at-a-Glance GENERATING >$25 MILLION IN ANNUAL REVENUE 4Q 2017 revenue of $386.3 million grew 9.6%(1) Achieved full-year 2017 guidance for pro forma revenue and adjusted EBITDA Revenue and revenue split based on 2017 pro-forma revenue See Further Adjusted EBITDA reconciliation for additional de
Slide 5: Exela-at-a-Glance: White-Space Opportunities in Growing Industries
WHITE-SPACE OPPORTUNITIES IN GROWING INDUSTRIES Exela-at-a-Glance 6 ~20% INCREASE IN REVENUE PER FTE TO $66K FROM $56K EMPLOYEES DECREASED 6% TO ~22,000 LOW CUSTOMER REVENUE CONCENTRATION: #1 CUSTOMER 6% #2-10 CUSTOMERS 19% TOTAL CONTRACT VALUE WON IN 2017 $1.523 BILLION INCREASING AWARENESS OF EXEL
Slide 6: Exela-at-a-Glance: Global customers in growing diversified industries
Exela-at-a-Glance 7 Global customers in growing diversified industries Revenue split based on 2017 pro-forma revenue.. Other includes Services, Commercial, Telecom & Utilities and Pharma and Life Sciences Based on financial information 12/31/17, presented on a pro forma basis REVENUE BY END MARKETS
Slide 7: Business Process Automation
Business Process Automation 8 Exela business process automation (BPA) suite delivers robotics and cognitive automation
Slide 8: Business Process Automation: Driving long-term shareholder value
Business Process Automation 10 Driving long-term shareholder value LEVERAGE BPA INITIATIVE/GOAL Business model expanded to include on-site and offsite locations to leverage our BPA leadership position 100 customers represent ~60% of total revenue, up 14% IMPROVE CUSTOMER AWARENESS SAVINGS INITIATIVE
Slide 9: Agenda
Agenda 11 Exela Technologies 4Q 2017 & FY 2017 Review Financial Performance and Business Strategy Conclusion and Q&A 2 1 3
Slide 10: Financial Performance and Strategy
FINANCIAL PERFORMANCE AND STRATEGY JIM REYNOLDS Chief Financial Officer
Slide 11: Q4 2017 vs. Pro Forma Q4 2016 Performance
Q4 2017 vs. Pro Forma Q4 2016 Performance 13 ($ in millions) Q4 2017 Pro Forma Q4 2016 % Change Revenue Information and Transaction Processing Solutions $301.5 $271.0 Healthcare Solutions 60.1 58.6 Legal and Loss Prevention Services 24.7 22.8 A Total Revenue 386.3 352.5 9.6% Cost of revenue (exclusi
Slide 12: Q4 2017 vs. Pro Forma Q4 2016 Performance: Revenue
Q4 2017 vs. Pro Forma Q4 2016 Performance 14 A ITPS revenue grew 7.8% sequentially. The year-over-over year increase in ITPS revenue was driven primarily by increased volumes and expansion of services within existing customers. HS revenue in-line with expectations. LLPS was slightly above expectatio
Slide 13: Q4 2017 vs. Pro Forma Q4 2016 Performance: Net Loss
Q4 2017 vs. Pro Forma Q4 2016 Performance 15 NET LOSS IMPROVED TO ($58.7) MILLION FROM ($130.5) MILLION ON A SEQUENTIAL BASIS FROM THE THIRD QUARTER OF 2017. B As a result of declining revenue in LLPS, and adopting Exela as the primary brand, we quantitatively assessed goodwill and other intangible
Slide 14: Q4 2017 vs. Pro Forma Q4 2016 Performance: EBITDA
Q4 2017 vs. Pro Forma Q4 2016 Performance 16 D Transaction costs represents costs incurred related to transactions and integration for completed or contemplated transactions during the period and were de minimis in Q4 2017 and totaled $96.6 million in Q3 2017. E Represents transition costs, terminat
Slide 15: Pro Forma 2017 vs. Pro Forma 2016 Performance
Pro Forma 2017 vs. Pro Forma 2016 Performance 17 ($ in millions) Pro Forma FY 2017 Pro Forma FY 2016 % Change Revenue Information and Transaction Processing Solutions $1,131.0 $983.3 15.0% Healthcare Solutions 233.6 247.6 -5.6% Legal and Loss Prevention Services 91.6 102.2 -10.4% A Total Revenue 1,4
Slide 16: Pro Forma FY 2017 vs. Pro Forma FY 2016 Performance
Pro Forma FY 2017 vs. Pro Forma FY 2016 Performance 18 ITPS - driven primarily by increased volumes and expansion of services within existing customers. HS - decrease is primarily attributable to a surge in demand from healthcare provider clients in 2016 as a result of a change in regulatory coding
Slide 17: Pro Forma FY 2017 vs. Pro Forma FY 2016 Performance
Pro Forma FY 2017 vs. Pro Forma FY 2016 Performance 19 B Increase was primarily attributable to the expenses incurred for professional fees which contributed $60.0 million and $33.4 million for contract termination and advisory fees related to the business combination. C As a result of declining rev
Slide 18: Pro Forma FY 2017 vs. Pro Forma FY 2016 Performance
Pro Forma FY 2017 vs. Pro Forma FY 2016 Performance 20 F Increase was primarily attributable to the expenses incurred for professional fees which contributed $60.0 and $33.4 million for contract termination and advising fees all related to the business combination and other charges. G Represents app
Slide 19: Capital Structure Overview
Capital Structure Overview 22 Long-term goal to achieve ~3.0x net leverage (1) Company entered into a standard three year, one-month LIBOR interest rate hedging contract with a notional amount of $347.8 million, which is the remaining principal balance of the term loan. The hedge contract will swap
Slide 20: 2018 Business Outlook and Long-term Financial Objectives
2018 Business Outlook and Long-term Financial Objectives 2018 outlook Initial 2018 revenue guidance is in the range of $1.510 billion - $1.540 billion or of 4% - 6%, exceeding the Company’s previous long-term guidance of 3% - 4% growth based on our visibility heading into 2018 Adjusted EBITDA guidan
Slide 21: Agenda
Agenda 24 Exela Technologies 4Q 2017 & FY 2017 Review Financial Performance and Business Strategy Conclusion and Q&A 2 1 3
Slide 22: Agenda
Agenda e Exela Technologies 4Q 2017 & FY 2017 Review e Financial Performance and Business Strategy 3) Conclusion and Q&A
Slide 23: Adjusted EBITDA Reconciliation – Q4 2016
Adjusted EBITDA Reconciliation – Q4 2016 26 Note: Net loss for the period is presented on the basis of the previous debt structure at the respective standalone companies. As of July 12th,2017 the existing debt structures at respective Exela entities have been replaced with a new capital structure co
Slide 24: Adjusted EBITDA Reconciliation – Q4 2017
Adjusted EBITDA Reconciliation – Q4 2017 27 ($ in millions) As Reported Q4 2017 Net loss ($58.7) Taxes (27.3) Interest expense 36.7 Depreciation and amortization 28.1 EBITDA ($21.1) Impairment of goodwill and other intangible assets 69.4 Optimization and restructuring expenses 11.0 Transaction and i
Slide 25: Further Adjusted EBITDA Reconciliation – FY 2016
Further Adjusted EBITDA Reconciliation – FY 2016 28 Note: Net loss for the period January 1- July 12 is presented on the basis of the previous debt structure at the respective standalone companies. As of July 12th, the existing debt structures at respective Exela entities have been replaced with a n
Slide 26: Further Adjusted EBITDA Reconciliation – FY 2017
Further Adjusted EBITDA Reconciliation – FY 2017 29 Note: Net loss for the period January 1- July 12 is presented on the basis of the previous debt structure at the respective standalone companies. As of July 12th, the existing debt structures at respective Exela entities have been replaced with a n
Slide 27: Further Adjusted Free Cash Flow Reconciliation from Net Loss FY 2016 – FY 2017
Further Adjusted Free Cash Flow Reconciliation from Net Loss FY 2016 – FY 2017 30 Note: Net loss for the period January 1- July 12 is presented on the basis of the previous debt structure at the respective standalone companies. As of July 12th, the existing debt structures at respective Exela entiti
Slide 28: FY 2016 and FY 2017 Pro Forma Revenue and Capital Expenditures
FY 2016 and FY 2017 Pro Forma Revenue and Capital Expenditures 31 (1) Financial results for FY 2016 does not include contribution for the first nine months from the TransCentra acquisition which closed on September 28, 2016. As Reported (1) Novitex Pro Forma Revenue - FY 2017 $1,152.3 $304.0 $1,456.
Slide 29: FY 2016 and FY 2017 Pro Forma SG&A including related party expenses
FY 2016 and FY 2017 Pro Forma SG&A including related party expenses 32 (1) Financial results for FY 2016 does not include contribution for the first nine months from the TransCentra acquisition which closed on September 28, 2016. Selling, general and administrative expenses (Incl related party) ($ i
Slide 30: Exela Technologies Q&A
exela TECHNOLOGIES Q&A March 15, 2018 NASDAQ: XELA