Slide 1: 1st Quarter FY 2019 Earnings Presentation
1st Quarter FY 2019 Earnings Presentation August 7, 2018
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: 1st Quarter FY 2019 - Mike Lawrie, Chairman, President and CEO
1st Quarter FY 2019 Earnings Presentation Mike Lawrie Chairman, President and Chief Executive Officer
Slide 5: Key messages
(1) Key messages Q1 non-GAAP EPS of $1.93 (2) Revenue of $5.3B — up 0.9% YoY, down 1.8% in cc Digital revenue up 21% YoY with a book-to-bill of 1.6x Separated our U.S. Public Sector business and created Perspecta FY19 non-GAAP EPS(2) target of $7.75 – $8.15 1 Results exclude the U.S. Public Sector b
Slide 6: 1st Quarter FY 2019 - Paul Saleh, CFO
1st Quarter FY 2019 Earnings Presentation Paul Saleh Executive Vice President and Chief Financial Officer
Slide 7: Reconciliation of non-GAAP results
Reconciliation of non-GAAP results Q1 FY19 Transaction, Amortization of Restructuring separation and Tax Non-GAAP (in millions except EPS) GAAP costs integration-related acquired adjustment results intangible assets costs Income from continuing operations before income taxes 360 185 70 135 - 750 Inc
Slide 8: 1st quarter results
1st quarter results Q1 FY19 Q1 FY18 Revenue ($M) $ 5,282 $ 5,236 – YoY Growth – GAAP 0.9% – YoY Growth – cc (1.8%) Adjusted EBIT ($M) 803 570 Adjusted EBIT Margin (%) 15.2% 10.9% (1) Adjusted Income from Continuing Operations ($M) 564 369 (1) Non-GAAP Diluted EPS from Continuing Operations $ 1.93 $
Slide 9: Global Business Services (GBS)
Global Business Services (GBS) Q1 FY19 Q1 FY18 Revenue ($M) $ 2,213 $ 2,267 – YoY Growth – GAAP (2.4%) – YoY Growth – cc (4.6%) GBS Profit ($M) 403 274 GBS Profit Margin (%) 18.2% 12.1% Bookings ($B) $ 2.0 $ 2.4 Revenue ($M) GBS Profit Margin % Bookings ($B) $2,213 $2,267 18.2% $2.4 $2.0 12.1% Q1 FY
Slide 10: Global Infrastructure Services (GIS)
Global Infrastructure Services (GIS) Q1 FY19 Q1 FY18 Revenue ($M) $ 3,069 $ 2,969 – YoY Growth – GAAP 3.4% – YoY Growth – cc 0.3% GIS Profit ($M) 474 271 GIS Profit Margin (%) 15.4% 9.1% Bookings ($B) $ 2.6 $ 3.7 Revenue ($M) GIS Profit Margin % Bookings ($B) $3,069 $2,969 15.4% $3.7 9.1% $2.6 Q1 FY
Slide 11: Financial highlights
Financial highlights Q1 FY19 Cash Flow ► Adjusted Free Cash Flow $321M Performance ► Cap Ex — Including Capital Leases $368M ► Cap Ex as a % of Revenue 7.0% Q1 FY19 Capital to Capital to ► Cash Dividends $51M Shareholders Shareholders $324M ► Share Repurchases 3.8M shares Q1 FY19 Capital ► Cash and
Slide 12: FY 2019 targets
FY 2019 targets Revenue $21.5B – $22.0B Non-GAAP EPS(1) $7.75 – $8.15 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, and tax adjustment 1st Quarter FY 2019 Earnings
Slide 13: Bookings
Bookings(1) $B FY18 FY19 $6.1 $5.3 $5.5 $4.9 $2.4 $4.6 $2.5 $3.3 $2.0 $2.0 $3.7 $2.8 $2.9 $2.6 $2.2 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 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 14: Supplemental Information
1st Quarter FY 2019 Earnings Presentation Supplemental Information
Slide 15: Non-GAAP reconciliations
Non-GAAP reconciliations EBIT and Adjusted EBIT (in millions) Q1 FY19 Q1 FY18 Net income $ 266 $ 173 Income from discontinued operations, net of taxes (35) (65) Income tax expense (benefit) 129 (17) Interest income (32) (16) Interest expense 85 74 EBIT 413 149 Restructuring costs 185 187 Transaction
Slide 16: Non-GAAP reconciliations
Non-GAAP reconciliations Segment profit (in millions) Q1 FY19 Q1 FY18 GBS profit $ 403 $ 274 GIS profit 474 271 All other profit (loss) (74) 25 Interest income 32 16 Interest expense (85) (74) Restructuring costs (185) (187) Transaction, separation and integration-related costs (70) (124) Amortizati
Slide 17: 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 18: Q1 FY18 non-GAAP results
Q1 FY18 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) $ 4,309 $ - $
Slide 19: Adjusted free cash flow
Adjusted free cash flow (in millions) Q1 FY19 Net cash provided by operating activities $ 473 Net cash used in investing activities (284) Acquisitions, net of cash acquired 43 Business dispositions 65 Payments on capital leases and other long-term asset financings (259) Payments on transaction, sepa
Slide 20: 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 21: DXC.technology
v DXC.technology BD,