Unisys Corporation New · NYSE:UIS
Unisys Corporation New — Unisys — Investor Day (June 2023)
129 slides from Unisys Corporation New's investor day presentation, Jun 15, 2023
Slide 1: Investor Day 2023
Investor Day 2023 June 15, 2023
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward - Looking Statements This presentation contains forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amende d, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unis
Slide 3: Agenda - June 15
Agenda - June 15 Presenter(s) Topic Michaela Pewarski Vice President, Investor Relations Welcome Peter Altabef Chair & Chief Executive Officer Vision and Objectives Mike Thomson President and Chief Operating Officer Strategy Manju Naglapur Senior Vice President and General Manager, Cloud, Applicatio
Slide 4: Agenda - June 15 (continued)
Agenda - June 15 Presenter(s) Topic Chris Arrasmith Senior Vice President and General Manager, Enterprise Computing Solutions Enterprise Computing Solutions Christine Wenzel Senior Vice President, Global Sales Lisa Madion Senior Vice President, Global Client Management Go - To - Market Deb McCann Ch
Slide 5: Vision and Objectives
Vision and Objectives JUNE 15, 2023 Peter Altabef Chair & Chief Executive Officer
Slide 6: Market backdrop
Market backdrop 1.5 T 11 % 3YR CAGR 1.1 T Secular Growth Tailwinds Infrastructure - as - a - Service ~$ 250 B by 2025 Next - Generation Compute ~ $ 200 B by 2025 We operate in a large and growing market Source: Everest, Gartner, Grand View Research, Transparency Market Research Note: Unisys judgment
Slide 7: Driving outcomes across the client's entire business
Driving outcomes across the client’s entire business Leveraging data and analytics, generative AI, and advanced computing to drive outcomes despite rising complexity, regulation, talent gaps, and technology debt retain talent hire faster optimize workforce comply with regulation secure data increase
Slide 8: What we have achieved
What we have achieved Scaled o ur go - to - market With a robust ecosystem of channel and alliance partners, with limited capital investment Transformed our b rand Repositioning Unisys as a technology innovator with our clients and industry analysts Acquired key c apabilities Filling out our solutio
Slide 9: An investment in Unisys is an investment in…
An investment in Unisys is an investment in… 1 2 3 4 5 Large market o pportunity Highly recurring r evenue Strong financial management Innovative Next - Gen and Industry Solutions Large base of high - quality c lients Large market opportunity, operating within the ~$1 Trillion IT solutions market In
Slide 10: What you will hear today…
What you will hear today… Long - Term Targets Our commitment to achieving faster growth, improving profitability, generating meaningful free cash flow, and creating shareholder value Growth Strategy Efficiency P lan License & Support Pension M anagement Innovation in P ractice
Slide 11: Strategy
Strategy JUNE 15, 2023 Mike Thomson President & Chief Operating Officer
Slide 12: Unisys today
Unisys today unisys
Slide 13: Our top clients have been with us for more than 20 years
Our top 50 clients on average have been with us for more than 20 years ~230 financial institutions globally depend on Unisys every day 8 out of 10 of the world’s top ranked * airlines are Unisys clients We drive breakthroughs Associates Countries Partners ~ 16 K ~$ 2 B Engineers Clients 2 K + 800 +
Slide 14: What we do
Redefine what's possible. We design, build, deploy, and manage proven cloud, applications, and infrastructure solutions that keep our clients moving forward while staying compliant and secure Technology is at the heart of opportunity. We enable organizations to embrace innovation with high - intensi
Slide 15: Experienced leadership
Experienced leadership With deep technology expertise Corporate Leadership Mike Thomson President & COO Deb McCann CFO Teresa Poggenpohl CMO Peter Altabef Chair & CEO Claudius Sokenu GC Business Leadership Dwayne Allen CTO & Innovation Lisa Madion Global Client Management Joel Raper Digital Workplac
Slide 16: We get results… Analyst Recognition
We get results… Provider Lens LEADER: Private Hybrid Cloud and Data Center Services Provider Lens LEADER: Public Cloud — Solutions and Services NEAT Assessment LEADER: End - to - End Cloud Infrastructure Management Services NEAT Assessment LEADER: Cognitive and Self - Healing Infrastructure Cloud, A
Slide 17: We get results… Operational Recognition
Digital Workplace Solutions Winner Best Support Analyst - 2022 Winner Best Service & Support Culture - 2023 Winner Best Support Manager - 2022 Winner Best Service & Support Organization - 2023 HDI Global Support Center Certification awarded to Unisys Global Service Desk - 2022 Winner Best Service De
Slide 18: We are acknowledged as an ESG leader
We are acknowledged as an ESG leader… Goal of reducing GHG emissions by 75 % met in 2022, five years ahead of schedule New NetZero Goal of 75 % Scope 1 and 2 carbon emissions reductions (from FY’20 baseline) by 2030 Improved MSCI rating from BB to A Improved ISS rating from Medium to Prime Improved
Slide 19: Our strategy
Our strategy “To be strategic is to concentrate on what is important, on those few objectives that can give us a comparative advantage, on what is important to us rather than others, and to plan and execute the resulting plan with determination and steadfastness.” Richard John Koch British managemen
Slide 20: Core elements of our strategy
Solution D evelopment Addressable Market Growth Land and E xpand Operational Excellence Margin Expansion Core elements of our s trategyPM0
Slide 21: Leading with our Next-Gen Solutions
Leading with our Next - Gen Solutions Modern Workplace Digital Platforms & Applications (DP&A) Specialized Services & Next - Gen Compute (SS&C) Micro Market Solutions Traditional Solutions Experience - based workplace solutions to enable centralized, secure, and proactive management of devices, comm
Slide 22: Next-Gen Solutions aligned to high-growth markets
2022E 2025E Next - Gen Solutions aligned to high - growth markets $ 534 B ~$600B $ 1.1 T $ 1.5 T 12% 3 - YR CAGR 3 Year CAGRs 15% 12% 5% Apps & Services Expansion Industry Solutions Next - Gen Compute Infrastructure Consulting Application Modernization Infrastructure as a Service Smart Workplace Mob
Slide 23: Where we are going
Where we are going ~65% Traditional Solutions ~ 35 % <55% Traditional Solutions 45 % + Next - Gen Solutions 2022 M ix As a % of E x - L&S revenue Target 2026 M ix As a % of E x - L&S revenue We have the opportunity to significantly increase our mix of Next - Gen revenue over the next three years 10%
Slide 24: Penetrating the mid-market
Penetrating the mid - market ~ 900 $ 14 B+ Potential U.S. clients IT spend a ddressable to Unisys $ 2 B - $ 5 B Target client s ize b y r evenue Buying themes Consolidated spend with fewer partners Less variability and customization required High demand for trust, reliability and personalization Val
Slide 25: Our variable solution development platform
Our variable solution development platform A platform that balances industry expertise, targeted innovation & integration, managed and purposeful orchestration to deliver optimized value Flexibility & variability in the technology solutions Standardized with ability to leverage innovation Shared R&D
Slide 26: Our approach to data analytics & AI
Our approach to data a nalytics & AI Data Engineering Generative AI Quantum Computing Simplifying complexity Expanding upon 34 existing solutions Data Security & Governance Domain Specified Insights Business Outcomes INNOVATE DESIGN IMPLEMENT MANAGE Areas of opportunity SOLUTION DEVELOPMENT
Slide 27: Land and expand: direct sales and partners
Direct sales Landing effectively Aligned around point of spear and full eco - system solution offerings Partner ecosystem Leveraging our channel, alliance, and innovation partnerships Brand awareness & marketing Industry analysts & advisors Engaging third - party analysts & advisors our clients turn
Slide 28: Awareness campaigns driving measurable success
Awareness campaigns driving measurable success 4X + 39 % $ 567 M 2x Marketing driven pipeline 1Q annualized versus FY 2022 Highest single - month web traffic ever recorded + 10 % March 2023 More clients and prospects visiting our website 1 Increase in LinkedIn followers 2023 marketing - influenced q
Slide 29: Quality client base
TECHNOLOGY/ TELECOMS/MEDIA LIFE SCIENCES AND HEALTHCARE TRAVEL AND TRANSPORTATION RETAIL MANUFACTURING/ CPG FINANCIAL SERVICES PUBLIC SECTOR Quality client base Serving as access points for expansion Note: logos reflect select Unisys clients LAND AND EXPANDPM0GA1PM2
Slide 30: Existing client growth opportunity
Existing client growth opportunity Traditional Infrastructure Untapped addressable wallet at our existing clients for DWS and CA&I solutions alone 1 Traditional Workplace $2.5B $9B Digital Platforms & Applications $2B Modern Workplace $19B Traditional Infrastructure Solutions $ 31 B Building relatio
Slide 31: How we plan to expand gross margins
How we plan to expand gross margins MARGIN EXPANSION Higher value capabilities Incorporating generative AI, hyper - automation, quantum computing Aligned to future demand Solutions in areas growing faster than the broader IT services market Outcomes - based approach Allowing us to contract on the va
Slide 32: Operational excellence
Real estate rationalization & renegotiation Optimizing administrative functions Centralize and consolidate technology spend Tailored training & career planning Internal talent marketplace Early career hiring & training programs Optimizing labor model Leverage partner ecosystem Faster implementation
Slide 33: Cloud, Applications & Infrastructure
Cloud, Applications & Infrastructure Delivering the “AI” in CA&I @ scale
Slide 34: Speaker and agenda
Speaker and agenda Manju Naglapur Senior Vice President and General Manager, Cloud, Applications & Infrastructure Solutions Who we a re Global innovation and solutions p ortfolio Enterprise AI continuum AI solutions @ clients Client stories 01 02 03 04 05
Slide 35: Who we are
Who we are Cloud & digital native Agile & deep technical engineering Scale with platforms & AI Cloud Applications & Infrastructure Redefine what's possible. We design, build, deploy, and manage proven cloud, applications, and infrastructure solutions that keep our clients moving forward while stayin
Slide 36: Market opportunities
Market opportunities Transform 1 2 3 Accelerate Disrupt Multi cloud Security Optimize Digital Automation Future work Core AI Applied AI Generative AI
Slide 37: Cloud, Applications & Infrastructure Portfolio
Experience Breakthroughs Modern Applications Data Analytics & AI Hybrid Infrastructure Cybersecurity Cloud Management Cloud, Applications & Infrastructure Portfolio
Slide 38: Portfolio solutions
38 Modern Application Solutions Application Migration & Modernization Enterprise Applications Modern User Experience Application Development & Maintenance Data Analytics & AI Solutions Data Migration & Modernization Modern Data Engineering Data Analytics Core AI Cloud Management Solutions Cloud Fina
Slide 39: Leading with industry
Leading with industry Global clients powered by Unisys innovation 85% Of CEOs reported increased investments in digital capabilities and 77% are increasing investments in Source: Gartner CEO Survey: Inflation Won’t Stall Digital Transformation, Provided Customer Experience Isa Focus Hitech Harnessin
Slide 40: Automated solutions built to scale
Automated solutions built to scale CLOUD, APPLICATIONS & INFRASTRUCTURE CloudForte ® Asset Suite
Slide 41: Enterprise AI Continuum
Enterprise AI Continuum AI Applied to business opportunities Applied AI Solutions AI Core Establish, Govern & Democratize AI within the enterprise AI Frameworks & Capabilities Developer frameworks, foundational models, toolchains & capabilities to enable Applied AI solutions
Slide 42: Providing AI solutions
Providing AI solutions Code assist, e xternal marketing c ontent AI on knowledge g raph , r isk m odelling Text analytics, d ata q uality , c ase m anagement Customer analytics, p ersonalization , c ustomer s egmentation , c ompetitive i ntelligence AI ops, RPA, c hatbots , contact c anter , v alida
Slide 43: European financial institution
Solution: Cloud first approach, OCM & governance through cloud business office European financial institution Multi - cloud platform adoption Frictionless cloud modernization & 40% upskilled labor Challenge: Ability to adapt to changing regulations across Europe and fast - changing market conditions
Slide 44: US mortgage leader
US mortgage leader Modern continuous delivery @ Scale 100% elimination of manual process for delivery Challenge: Misalignment between business and technology units Solution: No - touch, continuous delivery platform to multiple clouds
Slide 45: Global airline hospitality group
Global airline hospitality group Digital - first approach 95% reduction in production issues & 70% reduction in maintenance costs Challenge: Legacy core ERP systems & business process flows Solution: Modern, flexible, multi - tenant applications & application lifecycle management
Slide 46: Breakthrough with Unisys
Breakthrough with Unisys 01 02 03 Build resilient multi - cloud foundations Build, migrate & manage public, private, hybrid cloud foundations Accelerate modern digital capabilities Drive business outcomes through digital first modern applications Maximize enterprise insights with AI Disrupt your com
Slide 47: Digital Workplace Solutions
Digital Workplace Solutions Leading with experience
Slide 48: Speakers and agenda
Speakers and agenda Joel Raper Senior Vice President and General Manager, Digital Workplace Solutions Opportunities and o verview Client showcase Portfolio and s olutions Technology and AI deep dive Solution showcases 01 02 03 04 05 Alan Shen Vice President, Digital Workplace Solutions
Slide 49: The electric light did not come from candles
“The electric light did not come from the continuous improvement of candles” Oren Harari Business professor at University of San Francisco and Best - Selling author of business management books
Slide 50: Market opportunities
Market opportunities Transform 1 2 3 Accelerate Disrupt Personas Frontline worker User onboarding Standardized automation Time to value Endpoint as a service OpenAI LLM & ChatGPT Generative AI chatbots AI / ML business i nsights
Slide 51: Digital Workplace Solutions at-a-glance
Digital Workplace Solutions (DWS) at - a - glance 360 degree frontline s ervices Workplace business i nsights Next - Gen s ervice d esk Enhanced employee e xperience
Slide 52: Global household appliances company
Challenge : achieve 2X growth in 5 yrs Higher engineering output (15% NPS increase) Solution: XLA 2.0, onboarding, & smart meeting room services Global household appliances company Trusted advisor for experience futures
Slide 53: Creating the Modern Workplace
Creating the Modern Workplace Leading with experience Experience Breakthroughs Seamless Collaboration Modern Device Management Proactive Experience Workplace as a Service Intelligent Workplace Services
Slide 54: Workplace solutions portfolio
Workplace as a Service Device Subscription Services VDI (Hybrid or Cloud - Native) User On - Boarding Services Experience Breakthroughs Seamless Collaboration Modern Device Management Proactive Experience Workplace as a Service Intelligent Workplace Services Seamless Collaboration Managed Meeting Ro
Slide 55: Seamless Collaboration
Seamless Collaboration Frontline worker enablement Experience Breakthroughs Seamless Collaboration Modern Device Management Proactive Experience Workplace as a Service Intelligent Workplace Services
Slide 56: Proactive Experience
Proactive Experience Endpoint as a service Experience Breakthroughs Seamless Collaboration Modern Device Management Workplace as a Service Proactive Experience Intelligent Workplace Services
Slide 57: Workplace as a Service
Workplace as a Service User on - boarding services Experience Breakthroughs Seamless Collaboration Modern Device Management Workplace as a Service Proactive Experience Intelligent Workplace Services
Slide 58: PowerSuite and InteliServe
Diverse data i ngestion 3 rd Party p lug’n play t echnology a bstraction Better together – PowerSuite ® & InteliServe Ρ Predictive & Innovative Business Insights Org & user context i nsights Actionable service i mprovements PowerSuite ® AI - powered d ata a nalysis & insights e ngine Instant Automat
Slide 59: DWS solution maturity
DWS solution maturity Twelve domains of expertise provide “trusted advisor” advisory services • RTO efficacy (including Commute time and Carbon impact) • Smart PC refresh (maximizing EU experience) • ESG i mpact analysis & reporting • User onboarding e xperience • M365 service automation • Endpoint
Slide 60: AI @ DWS: machine learning and generative
AI @ DWS: machine learning and generative Generative AI Machine Learning AI Insights query reporting Developer acceleration Service desk agent assist Humanized & frontline chatbot Hybrid worker experience & ESG efficacy Persona relevant business insights Self - learning automation optimization Predi
Slide 61: Real Estate Hybrid Work Modernization
Challenge : Adapt to changing office needs 1 hour onboarding & ~$1M lost productivity recovery Solution: Onboarding automation & smart meeting room services Real Estate Hybrid Work Modernization
Slide 62: Healthcare Frontline Worker Optimization
Challenge: Merge two hospital systems Priceless life - saving focus without IT distractions Solution: Front line health care worker Healthcare Frontline Worker Optimization +
Slide 63: Digital Workplace Solutions at-a-glance
Digital Workplace Solutions (DWS) at - a - glance 360 degree frontline s ervices Workplace business i nsights Next - Gen s ervice d esk Enhanced employee e xperience
Slide 64: Enterprise Computing Solutions
Enterprise Computing Solutions Unlocking innovation with Unisys IP
Slide 65: Speaker and agenda
Speaker and agenda Chris Arrasmith Senior Vice President and General Manager, Enterprise Computing Solutions Opportunities and overview Client showcase Portfolio and solutions Quantum deep d ive 01 02 03 04
Slide 66: We keep breaking through
We keep breaking through
Slide 67: Opportunities to drive value for clients
Protecting business - critical workloads Overcoming skills scarcity Embracing emerging technologies such as Generative AI and Quantum Computing Creating value through data analytics Opportunities to drive value for clients
Slide 68: Enterprise Computing Solutions at-a-glance
Enterprise Computing Solutions (ECS) a t - a - glance Services expansion ClearPath Forward ® Next - Gen compute Industry solutions Licenses and Support (L&S) Specialized Services and Next - Gen Compute (SS&C)
Slide 69: Client examples: banking, mortgage, air cargo
European banking institution Enabling client innovation through a cloud - based software solution for transaction - intensive, business critical applications 30M+ Lines of code 250 Applications 30K Programs 2K Workflows 100+ APIs connected to internal systems and customs 2.3M Airway bills processed
Slide 70: ECS in daily life
ECS in daily life 70 % 80 M+ 8 % of mortgage volumes in Brazil of air freight globally v oicemail boxes in EMEA of passenger volume 7 %
Slide 71: ECS by the numbers
ECS by the numbers * Unisys ECS deployments ** includes direct sale, resale, and hosted providers 1,200 + Engineers 75 %+ Top L&S accounts increasing workloads 2,100 + Associates 5,000 + Organizations Supported ** 9.0 CSAT Score (2022) 43 Countries *
Slide 72: License & Support (L&S)
License & Support (L&S) Services Expansion ClearPath Forward NextGen Compute Industry Solutions License and Support (L&S) Specialized Services and Next - Gen Compute (SS&C)
Slide 73: What is ClearPath Forward?
73 What is ClearPath Forward? The Unisys ClearPath Forward Ecosystem Secure, high - intensity, proprietary compute environments Certified to run wherever the client needs Continuously adapting and expanding Designed for mission - critical workloads Reference Architecture (Intel x86) Partner A pplica
Slide 74: Why clients choose ClearPath Forward again and again
Why clients choose ClearPath Forward again and again Unisys ClearPath Forward Platform Secure, high performance, enterprise computing Full suite of value - added services Ecosystem addresses client opportunities A commitment to continuous innovation S atisfied clients & long - standing relationships
Slide 75: Helping our clients achieve breakthroughs
Helping our clients achieve breakthroughs “The technology is very stable and reliable . Unisys has been a very good partner to us, and we like to work with them. This very long relationship has helped us reach our success. ” "During the time that we have collaborated, we have worked very well, showi
Slide 76: Grace Hopper quote
“The information is more valuable than the hardware which processes it." - Grace Hopper Former Unisys Associate and Computing Pioneer
Slide 77: Specialized Services & Next-Gen Compute (SS&C)
Specialized Services & Next - Gen Compute (SS&C) Services Expansion ClearPath Forward NextGen Compute Industry Solutions License and Support (L&S) Specialized Services and Next - Gen Compute (SS&C)
Slide 78: 87% of Digital Transformations Fail
87% of Digital Transformations Fail Harvard Business Review
Slide 79: Enabling successful transformations
Enabling successful transformations Investment Maximization Deep Expertise Ecosystem Prioritization Unisys Experience Intuitive UI/UX Compliance Flexibility Incremental Approach Hybrid architecture Scalability Connectivity Adaptable Foundation
Slide 80: Industry solutions and managed services ecosystem
CPF - Based Managed Services Ecosystem Modernization Next Gen Compute Research Travel & Transportation Solutions Banking and Financial Services Unisys Logistics Optimization Helping clients harness their data, wherever they are on their journey
Slide 81: Evolving platform solutions to outcome-driven applications
Evolving platform solutions to outcome - driven applications Unlock client and external d ata Deliver outcome - driven, industry - specific solutions Deploy reinforced learning, advanced analytics and generative AI Leverage industry expertise Utilize Unisys pre - trained data models
Slide 82: Unlocking the value of client and external data
Unlocking the value of client and external data through data analytics Data Acquisition Data Cleansing Data Transformation Data Training Data Validation Rationalized Actionable Data Unstructured, Structured and Dark Data
Slide 83: Solving next-level business problems with quantum annealing
7 years Traditional Computational Tools 7 seconds Pre - trained Models powered by quantum annealing vs. Solving next - level business problems Quantum annealing, advanced analytics and AI Quantum Annealing Artificial Intelligence Advanced Analytics Creating next - level business outcomes Reinforced
Slide 84: Introducing Unisys Quantum IQ
Introducing Unisys Quantum IQ Applying our unique mix of expertise in data analytics, quantum computing, and artificial intelligence to deliver real - time logistics optimization
Slide 85: Unisys Logistics Optimization demo
Unisys Logistics Optimization Ρ demo
Slide 86: Bringing new industry solutions to life
Reduced emissions & carbon footprint 20 % Fuel efficiency with optimized loading of Cargo 25 % Improve on - time performance with reduced ground handling errors Bringing new industry solutions to life Unisys Quantum IQ Ρ : Unisys Logistics Optimization Ρ projected outcomes 10 % 30 % Reduction in c l
Slide 87: Enterprise Computing Solutions at-a-glance
Enterprise Computing Solutions at - a - glance Services Expansion ClearPath Forward NextGen Compute Industry Solutions License and Support (L&S) Specialized Services and Next - Gen Compute (SS&C)
Slide 88: Go-To-Market: Land & expand
Go-To-Market Land & expand unisys
Slide 89: Speaker and agenda
Speaker and agenda Lisa Madion Senior Vice President, Global Client Management Why choose Unisys Sales philosophy Partnership ecosystem Client case s tudies 01 02 03 04 Christine Wenzel Senior Vice President, Global Sales & Partnerships
Slide 90: Transforming fresh ideas into powerful outcomes
Transforming fresh ideas into powerful outcomes Christine Wenzel Senior Vice President, Global Sales
Slide 91: Why choose Unisys
Why choose Unisys Impact Expertise Experience Innovation
Slide 92: Sales philosophy
Sales philosophy Process How we sell People Our teams and our clients Partnerships Who we sell with p rofitability Equals
Slide 93: Go-to-Market structure
Go - to - Market structure Sales Executives Client Executives Land Expand Clients
Slide 94: Our process
Our process Understanding challenges to sell an outcome Pricing contracts on value delivered not cost Maximizing time with clients Faster proposals through bid - desk implementation Consistent pricing models and repeatable sales Working smarter
Slide 95: Our target markets
Our target markets Public Financial Services Commercial Mid - Market Large Companies LC0
Slide 96: Right combination of agility and scale for the mid-market
We have the right combination of agility and scale for the mid - market Manufacturing Energy & Utilities Travel & Transportation Healthcare Insurance Opportunities $ 2 B – $ 5 B revenue
Slide 97: The ways we go to market
The ways we go to market Centralized sales supported by Global Partnerships & Business Unit domain experts Go to market with leading technology providers, leveraging their relationships & innovation Expanding Unisys’ portfolio offerings with cutting edge solutions of our partners Private Equity spon
Slide 98: Key Unisys partners
Key Unisys partners F « | ia a aws D € 2 servicenow —T Technologies GoogleCloud + Microsoft S1E Sbmc_ clinisys scenesys gmeoaun (Dee. sipcom: — [Uijath AiSERA Cs) nexthink Oka snow* vmware ‘COMMVAULT’ meese. Clariti Gdatabricks Lenovo qualtrics readyworks GTechnologent © XCFOX Qe
Slide 99: Point Solutions, Project Work, Industry Solutions
Point Solutions Project Work Industry Solutions Point of spear Offerings Standardized solutions sold in a repeatable fashion with short sales cycles (E.g. software, “as - a - service,” and cyber security) Opening new logo doors and quickly establishing Unisys’ value proposition Discreet engagements
Slide 100: Experience matters
Experience matters Lisa Madion Senior Vice President, Global Client Management
Slide 101: Our clients told us they had three priorities
Our clients told us they had three priorities Personalized attention Dedication to innovation Proactive partnerships
Slide 102: This is what drives us
This is what drives us. Partnering to deliver powerful outcomes Expertise aligned to potential Solving the now and predicting the next Thinking beyond the contract
Slide 103: Key metrics
Key metrics New Business & Partnership TCV Average Deal Size TCV Cycle Length Win Rates Qualified Pipeline Client Wallet Share Cross Sell Penetration Renewal Rates
Slide 104: Global technology company
A trusted partner delivering a high - quality service experience globally 2016 2017 2018 2021 2022 2023 (OL) Revenue growth over time 33% 22% 8% 22% 14% *excluding GFC and Covid years Results >90% end - user satisfaction Positioned for growth into new markets 10+ years of established onsite b reak -
Slide 105: Mid-market multi-national medical device company
First time outsourcer wanted to improve quality of existing IT support while reducing cost of IT spend How w e a re d elivering Across Service Desk, Field Services, End Point Management, Data Center Management Supporting 6,000 employees in 8 countries on 4 continents Implementing ServiceNow, SharePo
Slide 106: Financial Overview
Financial Overview JUNE 15, 2023 Deb McCann Chief Financial Officer
Slide 107: Agenda
Agenda Historical financials & 2023 guidance Profitability & Free Cash Flow Financial targets
Slide 108: 2022 revenue profile
2022 revenue p rofile Highly diverse revenue streams with large base of recurring revenue 26% 26% 34% 14% DWS CA&I ECS All Other 2022 BY SEGMENT 45% 27% 13% 15% US & Canada EMEA Asia Pacific Latin America 2022 BY GEOGRAPHY 40% 29% 31% Commercial Financial Services Public Sector 2022 BY SECTOR 82% 18
Slide 109: Historical financials and 2023 guidance
FY23 FY22 FY21 $M ( 7% ) to ( 3% ) $1,980 $ 2,054 REVENUE $ 530 $ 572 GROSS PROFIT 26.7% 27.8% GAAP GROSS MARGIN % $159 $193 OPERATING PROFIT (NON - GAAP) 2% to 4% 8.0% 9.4% OPERATING MARGIN % (NON - GAAP) $ 326 $ 370 ADJUSTED EBITDA 9.5% to 11.5% 16.5% 18.0% ADJUSTED EBITDA MARGIN% Historical finan
Slide 110: Improving Free Cash Flow
Improving Free Cash Flow while m eeting o ur p ension o bligations & investing f or f uture g rowth Targeting 40 - 45% a djusted EBITDA to FCF conversion by 2026 (pre - pension) AP operational i mprovements Improved contract terms Working capital improvement Next - Gen solution mix shift Cost of del
Slide 111: License & Support
License & Support Strong profitability & visibility with g rowing a djacencies 3 & 5yr expected L&S average a nnual r evenue (2024 through 2026 & 2028) ~$ 360 M Growing L&S revenue in 2024 and 2025 low - single and low - double digits, respectively 3 & 5yr expected a verage L&S gross m argin (2024 t
Slide 112: SG&A reduction target
$ 50 M ~$ 20 M Optimize and streamline c ore G&A f unctions and real e state footprint Balance labor l ocation and pyramid Information Technology centralization and normalization ~$ 10 M ~$ 20 M © 2023 Unisys Corporation. All rights reserved. 112 Targeting $ 50 M a nnual SG&A reduction by 2026 ~ 1/3
Slide 113: Pension strategy
Pension strategy $4.8 $2.8 $3.1 $1.6 $7.9 $4.4 $0 $3 $6 $9 2019 2020 2021 2022 US non-US Global $1.42 $0.41 $0.33 $0.13 $1.75 $0.54 $0 $1 $2 2019 2020 2021 2022 US non-US Global Liabilities ~ 45 % ~ 70 % $ 1.7 B Since Year - End 2019 Reduction global liabilities Reduction global GAAP deficit 1 Remov
Slide 114: Declining estimated pension cash contributions after 2026
Declining estimated pension cash contributions after 2026 1. All Other Plans includes all international defined benefit plans and our U.S. non - qualified defined benefit plan Note: The funding estimates for our U.S. qualified defined benefit pension plans are based on estimated asset returns and th
Slide 115: Mid-term Free Cash Flow assumptions
Mid - term Free Cash Flow assumptions Capital Expenditures Taxes Pension Annual Capex of ~4 - 5% of Revenue Estimating ~$40M in restructuring costs to achieve SG&A and Cost of Delivery efficiencies, spread across 2023 & 2024 Interest Restructuring & Other Annual Cash Taxes of ~$50 - $60M Representin
Slide 116: Adding it all up
Adding it all up
Slide 117: Long-term targets: revenue growth and margins
4 % - 6 % Total Company Revenue Growth Driving revenue g rowth 10 % - 12 % Total Company Operating Margin TARGET 3YR CAGR FROM MID - POINT OF FY 2023 GUIDANCE TO 2026 Expanding profitability TARGET FULL - YEAR 2026 NON - GAAP MARGINS ~ 65 % L&S GROSS MARGIN ~25 % NEXT GEN GROSS MARGIN ~ 15 % TRADITI
Slide 118: Estimated Free Cash Flow equation
4% - 6% Revenue Growth Estimated Free Cash Flow equation $ 2.1 B - $ 2.2 B Total company revenue $ 350 - $ 400 M Adjusted EBITDA Targeted by 2026 Sufficient to service pension, invest in future growth, and drive shareholder value + = © 2023 UNISYS CORPORATION. ALL RIGHTS RESERVED. 118 ~17 - 19% Adj.
Slide 119: Pre-pension Free Cash Flow expected to increase
Pre - pension Free Cash Flow expected to increase as estimated expected pension contributions decrease 1. All Other Plans includes all international defined benefit plans and our U.S. non - qualified defined benefit plan Note: The funding estimates for our U.S. qualified defined benefit pension plan
Slide 120: An investment in Unisys is an investment in…
An investment in Unisys is an investment in… 1 2 3 4 5 Large market o pportunity Highly recurring r evenue Strong financial management Innovative Next - Gen and Industry Solutions Large base of high - quality c lients Large market opportunity, operating within the ~$1 Trillion IT solutions market In
Slide 121: Appendix
Appendix unisys
Slide 122: Estimated pension sensitivity
Estimated pension sensitivity For U.S. Qualified Defined Benefit Pension Plans Investment policy t argets 52% Equity securities 34% Debt securities 14% Other Estimated sensitivities to 2023 U.S. total Trust r eturn and Dec. 31, 2023 10yr T reasury y ields (Including estimated impact of March 2023 an
Slide 123: License & Support (L&S) historicals
License & Support (L&S) historicals 1Q23 4Q22 3Q22 2Q22 1Q22 $M $516 $557 $461 $515 $447 TOTAL COMPANY REVENUE $136 $170 $87 $138 $73 L&S REVENUE $380 $387 $374 $377 $373 TOTAL COMPANY EX - L&S REVENUE $159 $190 $104 $148 $87 TOTAL COMPANY GROSS PROFIT (GAAP) $106 $144 $60 $109 $47 L&S GROSS PROFIT
Slide 124: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation FY22 FY21 $M $ (106.0) $ (448.5) NET INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO UNI SYS 1.1 (1.3) NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 20.0 27.6 INTEREST EXPENSE, NET OF INTEREST INCOME 1 42.3 (11.9) PROVISION FOR INCOME TAX 114.7 98
Slide 125: Non-GAAP operating profit
FY22 FY21 $M $ 52.2 $ 154.0 OPERATING PROFIT 104.7 35.3 COST REDUCTION AND OTHER EXPENSES 1 2.1 3.5 POSTRETIREMENT EXPENSE 2 $ 159.0 $ 192.8 NON - GAAP OPERATING PROFIT $ 1,979.9 $ 2,054.4 REVENUE 2.6% 7.5% GAAP OPERATING PROFIT % 8.0% 9.4% NON - GAAP OPERATING PROFIT % Non - GAAP operating profit 1
Slide 126: Unisys segment and solutions map
Unisys segment and solutions map Digital Workplace Solutions (DWS) Cloud, Application & Infrastructure Solutions (CA&I) Enterprise Computing Solutions (ECS) All Other (various business process solutions) SEGMENT / REPORTING NEXT - GEN SOLUTIONS TRADITIONAL SOLUTIONS Modern Workplace Digital Platform
Slide 127: Pension terminology
US GAAP Accounting Liabilities: projected future benefits, present valued at current market corporate discount rates US GAAP Accounting Assets: fair market value of assets held in the pension trust US GAAP Discount Rate: market rate reflecting portfolio of AA corporate bonds that could theoretically
Slide 128: Definitions of non-GAAP financial metrics and other terms
Definitions of non - GAAP financial metrics and other terms Non - GAAP Information This presentation includes non - GAAP financial information such as non - GAAP operating profit, EBITDA, adjusted EBITDA, and revenu e excluding License and Support. The Company’s non - GAAP financial measures exclude
Slide 129: Thank you
Thank you Contact us: investor@unisys.com BT0