Dxc Technology Company · NYSE:DXC
Dxc Technology — Q1 FY2020 Earnings Presentation
22 slides from Dxc Technology's earnings presentation, Aug 8, 2019
Slide 1: 1st Quarter FY 2020 Earnings Presentation
1st Quarter FY 2020 Earnings Presentation August 8, 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”), EBIT margin, adjusted EBIT, adjusted E
Slide 3: Forward-looking statements
Forward-looking statements All statements in this presentation that do not directly and exclusively relate to historical facts constitute “forward-looking statements.” These statements represent current expectations and beliefs, and no assurance can be given that the results described in such statem
Slide 4: Consolidated statements of operations
Consolidated statements of operations (preliminary and unaudited) in millions, except per-share amounts Q1 FY20 Q1 FY19 Revenue $ 4,890 $ 5,282 Costs of services 3,622 3,867 Selling, general and administrative 507 440 Depreciation and amortization 470 471 Restructuring costs 142 185 Interest expense
Slide 5: 1st Quarter FY 2020
1st Quarter FY 2020 Earnings Presentation Mike Lawrie Chairman, President and Chief Executive Officer
Slide 6: Key messages
Key messages Revenue of $4.89B Q1 non-GAAP EPS(1) of $1.74 35% YoY cc growth in Digital revenue with a book-to-bill of 1.3x Continuing to invest in Digital capabilities, including the completed acquisition of Luxoft Revised FY20 revenue target of $20.2B – $20.7B and FY20 non-GAAP EPS target(1) of $7
Slide 7: 1st Quarter FY 2020
1st Quarter FY 2020 Earnings Presentation Paul Saleh Executive Vice President and Chief Financial Officer
Slide 8: Reconciliation of non-GAAP results
Reconciliation of non-GAAP results Q1 FY20 Transaction, Amortization of Restructuring Separation and Non-GAAP (in millions except EPS) GAAP Acquired Intangible Costs Integration-Related Results Assets Costs Income from continuing operations before income taxes 206 142 105 138 591 Income tax expense
Slide 9: 1st quarter results
1st quarter results Q1 FY20 Q1 FY19 Revenue ($M) $ 4,890 $ 5,282 – YoY Growth – GAAP (7.4%) – YoY Growth – cc (4.2%) Adjusted EBIT ($M) 652 803 Adjusted EBIT Margin (%) 13.3% 15.2% (1) Adjusted Income from Continuing Operations ($M) 472 564 (1) Non-GAAP Diluted EPS from Continuing Operations $ 1.74
Slide 10: Global Business Services (GBS)
Global Business Services (GBS) Q1 FY20 Q1 FY19 Revenue ($M) $ 2,159 $ 2,213 – YoY Growth – GAAP (2.4%) – YoY Growth – cc 0.5% GBS Profit ($M) 366 403 GBS Profit Margin (%) 17.0% 18.2% Bookings ($B) $ 2.4 $ 2.0 Revenue ($M) GBS Profit Margin % Bookings ($B) 17.0% 18.2% $2.4 $2,159 $2,213 $2.0 Q1 FY20
Slide 11: Global Infrastructure Services (GIS)
Global Infrastructure Services (GIS) Q1 FY20 Q1 FY19 Revenue ($M) $ 2,731 $ 3,069 – YoY Growth – GAAP (11.0%) – YoY Growth – cc (7.6%) GIS Profit ($M) 340 474 GIS Profit Margin (%) 12.4% 15.4% Bookings ($B) $ 1.8 $ 2.6 Revenue ($M) GIS Profit Margin % Bookings ($B) 12.4% 15.4% $2.6 $2,731 $3,069 $1.
Slide 12: Financial highlights
Financial highlights Q1 FY20 Cash Flow ► Adjusted Free Cash Flow $72M Performance ► Cap Ex — Including Payments on Capital Leases $357M ► Cap Ex as a % of Revenue 7.3% Q1 FY20 Capital to Capital to ► Cash Dividends $51M Shareholders Shareholders $400M ► Share Repurchases 7.4M shares Q1 FY20 Capital
Slide 13: FY 2020 targets
FY 2020 targets Revenue $20.2B – $20.7B Non-GAAP EPS(1) $7.00 – $7.75 Adjusted Free Cash Flow 90% of Adj. Net Income(1) 1 Excludes restructuring costs, transaction, separation and integration-related costs, amortization of acquired intangible assets 1st Quarter FY 2020 Earnings Presentation August 8
Slide 14: Bookings
Bookings(1) $B FY19 FY20 $5.7 $5.8 $4.6 $4.7 $2.3 $4.2 $2.9 $2.0 $2.2 $2.4 $3.4 $2.6 $2.5 $2.9 $1.8 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 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 15: Supplemental Information
1st Quarter FY 2020 Earnings Presentation Supplemental Information
Slide 16: Non-GAAP reconciliations
Non-GAAP reconciliations EBIT and Adjusted EBIT (in millions) Q1 FY20 Q1 FY19 Net income $ 168 $ 266 Income from discontinued operations, net of taxes - (35) Income tax expense 38 129 Interest income (30) (32) Interest expense 91 85 EBIT 267 413 Restructuring costs 142 185 Transaction, separation an
Slide 17: Non-GAAP reconciliations
Non-GAAP reconciliations Segment profit (in millions) Q1 FY20 Q1 FY19 GBS profit $ 366 $ 403 GIS profit 340 474 All other loss (54) (74) Interest income 30 32 Interest expense (91) (85) Restructuring costs (142) (185) Transaction, separation and integration-related costs (105) (70) Amortization of a
Slide 18: Q1 FY20 non-GAAP results
Q1 FY20 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) $ 3,622 $ - $ - $ - $ 3,622
Slide 19: Q1 FY19 non-GAAP results
Q1 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) $ 3,867 $ - $
Slide 20: Adjusted free cash flow
Adjusted free cash flow (in millions) Q1 FY20 Net cash used in operating activities $ (66) Net cash used in investing activities(1) (1,747) Acquisitions, net of cash acquired 1,911 Payments on capital leases and other long-term asset financings (210) Payments on transaction, separation and integrati
Slide 21: 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 22: DXC.technology
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