Unisys Corporation New · NYSE:UIS
Unisys Corporation New — Unisys — Investor Presentation (2024)
25 slides from Unisys Corporation New's investor presentation, 2024
Slide 1: Unisys Overview
cial Officer Unisys Overview Deb McCann U unisys Chief Finan
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forwarc-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unisys ca
Slide 3: Unisys | A global technology solutions company
Unisys | A global technology solutions company We help people and organizations reach the next breakthrough with transformative, mission-critical IT solutions. Managed Next-Gen Services Compute Industry Solutions Cloud, Applications Digital Workplace Enterprise Computing & Infrastructure Solutions S
Slide 4: The Unisys Transformation
The Unisys Transformation Positive Inflection in New Logo Signings Expecting Positive Free Cash Leader Recognition in Key Flow Analyst & Advisor Reports Return to Growth Driven Expansion of Alliance Partner by Existing Clients Program New Brand &Go-To-Market Unisys Logistics Optimization Operational
Slide 5: Secular IT Trends
Secular IT Trends How Unisys delivers Mission Critical IT Expertise with consistent delivery excellence at scale ran Organizational change management ----------~ Governance & Compliance ~~. i ‘ Enabling Multi-Cloud Environments ' (© Cloud) (Cybersecurity) ( DataProliferation ) | Deep Data Expertise
Slide 6: Cloud, Applications & Infrastructure Solutions
Cloud, Applications & Infrastructure Solutions Applications Why our clients choose Unisys IT maturity enhancement Helping to mature IT organizations from reactive to proactive and accelerating innovation for over a century. Complexity simplified Deep expertise solving the toughest business and techn
Slide 7: Digital Workplace Solutions
Digital Workplace Solutions Why our clients choose Unisys Stability and continuity Proven track record of client retention, cost-savings, operations modernization, growth and innovation. Strategic partnerships Leveraging global alliances and 3 party ecosystems to create a one-stop shop for successfu
Slide 8: Enterprise Computing Solutions
Enterprise Computing Solutions ClearPath Forward Managed Services Next-Gen Compute Industry Solutions Why our clients choose Unisys Client-centric approach Fostering long-term partnerships and intimate understanding of unique business needs. Industry expertise Unmatched depth of expertise in Travel
Slide 9: FY23 Revenue Profile
FY23 Revenue Profile Highly diverse revenue streams with large base of recurring revenue Geography US& Canada I 459% 0 EMEA I 30% 2 1 Yo Asia Pacific 3% L&S Solutions MIX Latin America [12% OF TOTAL COMPANY Client Sector ial SE 36° 719% REVENUE Commercial 36% Financial Services I s2°. Public Sector
Slide 10: Select Unisys Clients
Select Unisys Clients PUBLIC FINANCIAL TRAVEL AND SECTOR/HIGHER EDUCATION SERVICES TRANSPORTATION [EI te Catifornia state University @ Globe Life AIRFRANCEKLM cnt, sani Xp usec fa. BAR A ® i gta : ING Ab ADELTA WAKA KOTAH hil MetLife malaysia P Reever R CONSUMER GOODS AXBenjamin Moore’ ETAIL AND ~@
Slide 11: Strategic Unisys Partners
Strategic Unisys Partners Key Alliance Partners aWS D@LL . ; 2, fa Lenovo BE Microsoft servicenow ~~) Technologies Other Alliance Partners AH=AD Cf aPprio 53 bme boomi @erivcerointe carahsoft. @B cardinality.ci flariti_ clinisys Di:\WOVUC Cdatabricks CX) Delphix diversified grEthAum ¢pfacephi <% FAC
Slide 12: Unisys AI Solutions & Services
Unisys AI Solutions & Services A comprehensive, start-to-future AI portfolio with a pragmatic approach
Slide 13: Improving restaurant operations through AI
Uu C} mproving restaurant operations through Al Service Experience Accelerator OpenAl-based agent Auto-generating knowledge Our machine learning teams are building awide range of Al and GenAlalgorithms to enhance global restaurant operations Proactive ticket reduction keeps crew members focused on r
Slide 14: Delivering gross margin expansion
Delivering gross margin expansion Lower the cost of delivery through increased use of automation and labor optimization Higher value capabilities Incorporating generative Al, hyper-automation, quantum computing Aligned to future demand Strategic account management Solutions in areas growing faster G
Slide 15: Levers to Improve Free Cash Flow and Unlock Value for Stakeholders
Levers to Improve Free Cash Flow and Unlock Value for Stakeholders Delivery & Operational Excellence Working Capital Management @ — — ‘a Reducing Legal & Environmental Enhancing Payments Free Cash Flow Tax Asset tf —_ — Q Pension Risk Utilization Management vw Cap-Ex Lite Strategy © 2024 UNISYS CORP
Slide 16: Revenue Growth & Gross Margin Trends
Revenue Growth & Gross Margin Trends Total Company REVENUE GROWTH (0.4%) 2Q22 (5.5%) 3Q22 GROSS MARGIN 2Q22 3Q22 4Q22 4Q22 1Q23 1023 (7.4%) 2Q23 2Q23 3Q23 3023 4Q23 4023 (5.5%) 1Q24 1024 2Q24 2024 Excluding L&S REVENUE GROWTH 6.2% 6.8% 4.9% 4.0% (2.5%) (3.5%) (4.7%) 2Q22 3022 4022 1023 2023 3023 402
Slide 17: Leverage Detail
Leverage Detail $M JUNE 30, 2024 DECEMBER 31, 2023 SENIOR SECURED NOTES! $ 485.0 $ 485.0 FINANCE LEASES AND OTHER DEBT 15.4 23.8 TOTAL DEBT $ 500.4 $ 508.8 GLOBAL NET PENSION DEFICIT (AS OF DEC 31, 2023) 703.0 703.0 TOTAL DEBT INCLUDING PENSION DEFICIT $ 1,203.4 $ 1,211.8 CASH $344.9 $ 3877 NET LEVE
Slide 18: Our Opportunity
Our Opportunity We have multiple large opportunities to create significant value for Unisys stakeholders ec Grow Ex-L&S revenue Building awareness and recognition of our solutions & capabilities @ Accelerate growth rate Through Al-related services and industry solutions, such as Unisys Logistics Opt
Slide 19: Appendix
Slide 20: Defined Benefit Plans Update
Defined Benefit Plans Update Global GAAP deficit, as of December 31, 2023, is ~$700 million, including ~$430 million for U.S. Qualified Defined Benefit Plans + Two U.S. annuity purchases executed in 2023 reduced global liabilities by approximately half a billion dollars and one annuity purchase in 2
Slide 21: Expected 10-Year Company Cash Contributions ($M)
Expected 10-Year Company Cash Contributions ($M) As of December 31, 2023, our expectation is for contributions to our US Expected contributions to our global pension plans for the defined benefit pension plans to begin in 2025 and average $74M per five-year period beginning in 2024 are $484 million,
Slide 22: Potential Economic Benefit of Tax Assets
Potential Economic Benefit of Tax Assets NET DEFERRED TAX FUTURE AVAILABLE $M DESCRIPTION ASSETS! [REDUCTIONS IN U.S. NOLS AND TAX CREDITS: NET OPERATING LOSS - FEDERAL & STATE $546 $1,743 TAX CREDITS 112 533 PENSION AND OTHER: _ PENSION 127 519 OTHER DEFERRED TAX ASSETS 99 405 TOTAL AVAILABLE U.S.
Slide 23: Revenue and Gross Profit Excluding License and Support
Revenue and Gross Profit Excluding License and Support (Ex-L&S) $M 2Q22 3Q22 4Q22 1023 2Q23 3Q23 4Q23 1024 2Q24 REVENUE $515.0 $ 461.2 $ 557.0 $516.4 $ 476.8 $464.6 $ 557.6 $ 4878 $ 478.2 L&S REVENUE 137.6 86.9 170.1 136.9 80.8 67.1 144.3 93.2 821 EX-L&S REVENUE $377.4 $ 374.3 $ 386.9 $ 379.5 $396.0
Slide 24: Adjusted Free Cash Flow
Adjusted Free Cash Flow $M 2Q22 3022 4Q22 1023 2023 3023 4Q23 1024 2024 CASH PROVIDED BY OPERATIONS ($337) $445 $349 $128 $425 ($41) $230 $238 $27 ADDITIONS TO MARKETABLE SOFTWARE (125) (11.6) (111) (10.3) (11.0) (116) (13.1) (48.2) (12.5) ADDITIONS TO PROPERTIES (8.8) (75) (9.5) (73) (4.6) (3.5) (5
Slide 25: Contact
Contact: Investor@Unisys.com U unisys