Fourth-Quarter & Full Year 2010 Financial Results...• Statements made by Unisys during today’s presentation that are not historical facts, including those regarding future performance,

Webcast available on www.unisys.com/investor

Janet HaugenChief Financial Officer

Ed ColemanChairman & CEO

Fourth-Quarter & Full Year2010 Financial ResultsFebruary 1, 2011

© 2011 Unisys Corporation. All rights reserved.

Disclaimer

• Statements made by Unisys during today’s presentation that are not historical facts, including those regarding future performance, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ from expectations. These risks and uncertainties are discussed in the company’s reports filed with the SEC and in today’s earnings release.

• This presentation also includes non-GAAP financial measures including EBITDA, Adjusted Net Debt and Free Cash Flow. Definitions of these non-GAAP financial measures and reconciliations to GAAP measures are included in this presentation.

• These presentation materials can be accessed through a link on the Unisys Investor Web site at www.unisys.com/investor. Information in this presentation is as of February 1, 2011 and Unisys undertakes no duty to update this information.


• Sharpened focus on portfolio– Completed divestitures of non-core businesses– Invested in our portfolio and global services delivery infrastructure– Significantly enhanced our flagship ClearPath platform

• Improved business model profitability– Increased full year operating profit by 14%;

Operating profit margin rose to 9.3%– Achieved services operating margin of 8.0% in 4Q;

Second consecutive quarter within the 8-10% range– Pre-tax income from continuing operations increased

to $223M for the full year on lower revenue

• Important progress towards our longer term revenue goal– IT outsourcing revenue outside the US federal business up 6% for the year– Technology revenue flat at $562M for the full year

o ClearPath sales rose 5% for the year

• Ended the year with zero net debt

Slide 1Continued Progress and Improvement In 2010

Network Operation Centers

Application/Software Centers

Service Desks

Data Centers

Security Operations Centers

© 2011 Unisys Corporation. All rights reserved.

North America Region• 4 Application/Software Centers• 4 Data Centers• 3 Service Desks• 2 Network Operations Centers• 4 Security Operations Centers

Latin America Region • 3 Application/Software Centers• 2 Data Centers• 3 Service Desks• 3 Network Operations Centers• 1 Security Operations Center

EMEA Region• 5 Application/Software Centers• 3 Data Centers• 4 Service Desks• 2 Network Operations Centers• 1 Security Operations Center

Asia Pacific Region• 4 Application/Software Centers• 4 Data Centers• 9 Service Desks• 3 Network Operations Centers• 4 Security Operations Centers

CERTIFICATIONS• ISO 20000, 27001, 9001• CMMI Levels 3-5• ITIL-based Standardization

Slide 2Unisys Global Centers

Slide 3Strengthening the Balance Sheet

-$250

$0

$250

$500

$750

$1,000

$1,250

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

AR Securitization

Long-Term Debt (LTD)

Cash

Net Debt

$M

* Net Debt = LTD + utilizationunder AR securitization facility less cash.

See Schedule A: GAAP to non-GAAP Reconciliations.

Slide 4Objectives For 2011-2013

• Our goals over the next three years:– Grow IT outsourcing and systems integration at market

rates; Maintain stable technology revenueo Excludes TSA impact in 2011 versus 2010

– Consistently deliver 8-10% services operating profit

– Increase annual pre-tax profit to $350 million in 2013, assuming no change in pension income or expense from 2010

– Reduce debt 75% by the end of 2013


Slide 5 4Q10 Order Highlights

• Closed 4Q10 with $5.8B in services backlog vs. $5.9B at YE09

• Services orders and backlog were flat sequentially• By portfolio:

– ITO orders declined significantly y/y and sequentiallyafter double-digit growth last quarter

– SI/consulting orders declined y/y and sequentially– BPO, infrastructure services and core maintenance orders

up y/y and sequentially

• By geography:– International orders up slightly on a constant currency basis– U.S. (including Federal) and Latin American orders declined

Slide 6 4Q10 Financial Results$M (excluding EPS) 4Q10 4Q09 Y/Y % Ch

Revenue $1,045 $1,159 (10%)

Gross Profit $311 $340 (9%)

Gross Profit Margin 29.8% 29.4% 0.4 pts

Operating Expenses (SG&A plus R&D) $177 $206 (14%)

Operating Profit $135 $134 0%

Operating Profit Margin 12.9% 11.6% 1.3 pts

Other Income (Expense) ($6) ($9) $3

Pre-tax Income from Continuing Ops $103 $98 5%

Tax (Benefit) Expense $6 ($13)

Net Income from Continuing Operations $95 $114 (16%)

Net Income $99 $115

Diluted EPS $2.29 $2.64

Slide 74Q10 Total Company Key Performance Metrics

228 213

262298

340

235288

237

311

19% 20%24%

27%29%

24%28%

25%

30%

0%

10%

20%

30%

40%

$0

$100

$200

$300

$400

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Gross Margin % of Rev$M

284

198 193 186206

177 182161 17723%

19% 18% 17% 18% 18% 18% 17% 17%

0%

10%

20%

30%

40%

$0

$100

$200

$300

$400

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Operating Expense % of Rev$M

-56

15

69

112134

59

10776

135

-5% 1%

6% 10%

12%

6%

10%8%

13%

-10%

0%

10%

20%

-$100

$0

$100

$200

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Operating Income % of Rev$M

59

90

160188

225

87

160136

187

5%

9%

15%

17%19%

9%

15% 14%

18%

0%

5%

10%

15%

20%

25%

$0

$100

$200

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

EBITDA * % of Rev$M

(SG&A + R&D)

* See Schedule B: GAAP to non-GAAP Reconciliations.

Slide 8Operating Profit

-2.551.8

140.2

330.0373.3

410.7375.2 375.7

-$100

$0

$100

$200

$300

$400

$500

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

$M Trailing Twelve Months Operating Profit

Slide 94Q10 Services

$M 4Q10 Y/Y Ch Y/Y Ch*

Services Revenue $860 (11%) (9%)

Gross Margin 21.9% 250 bp

Operating Margin 8.0% 80 bp

Revenue by Portfolio

Systems Integration $302 (12%) (12%)

Information Technology Outsourcing

$315 (2%) (2%)

Infrastructure Services $115 (20%) (17%)

Core Maintenance $56 (25%) (12%)

Business Process Outsourcing

$72 (14%) (14%)

36% 35%

34% 37%

14% 13%7% 7%9% 8%

0%

25%

50%

75%

100%

4Q09 4Q10

BPO

Core*

ISS*

ITO

SI

Services Revenue

*Excluding divested businesses

Slide 104Q10 Technology

Technology Revenue $M 4Q10 Y/Y Ch Y/Y Ch*

TechnologyCustomer Revenue

$185 (4%) (1%)

Gross Margin 56.6% (440 bp)

Operating Margin 30.5% (100 bp)


Enterprise Servers $152 (10%) (10%)

Other Technology $33 43% 71%

90%82%

10%18%

0%

25%

50%

75%

100%

4Q09 4Q10

OtherTechnology*

EnterpriseServers*


Geography

Industry

Slide 114Q10 Unisys Revenue Profile

Y/Y Ch

North America (12%)

Europe/Africa (13%)

Asia Pacific (4%)

Latin America 4%

Y/Y Ch

Public Sector (16%)

Commercial (7%)

Financial 0%

North America

41%

Europe Africa35%

Asia Pacific

12%

Latin America

12%

Public Sector

44%

Commercial32%

Financial24%

Slide 12Revenue Performance (excluding divested businesses)

344389

361395

339 351 327 341295

335292 302

315

338335 320

290324 326 322

301317

328 315

155133 153 154

10992

150187

125

145

105

185

$0

$200

$400

$600

$800

$1,000

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

SI ITO Tech$M

[52] [43][47][50] [43][42] [32] [22][31][30] [33][32]

108 112 110 90 79 82 85 84 68 66 64 72

191 181 173151

135 137 127 138124 115 116 115

79 79 7871

64 65 68 6457 59 55 56

$0

$200

$400

$600

$800

$1,000

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Core ISS BPO$M

TSA

Slide 13 2010 Financial Results

$M (excluding EPS) 2010 2009 Y/Y % Ch

Revenue $4,020 $4,386 (8%)

Gross Profit $1,072 $1,113 (4%)

Gross Profit Margin 26.7% 25.4% 1.3 pts

Operating Expenses (SG&A plus R&D) $696 $783 (11%)

Operating Profit $376 $330 14%

Operating Profit Margin 9.3% 7.5% 1.8 pts

Other Income (Expense) ($51) ($17) ($34)

Pre-tax Income from Continuing Ops $223 $218 2%

Tax Expense $59 $42

Net Income from Continuing Operations $159 $172 (8%)

Net Income $236 $189

Diluted EPS $5.45 $4.75

Slide 142010 Services

$M 2010 Y/Y Ch Y/Y Ch*

Services Revenue $3,457 (10%) (8%)




Systems Integration $1,223 (10%) (10%)

Information Technology Outsourcing

$1,261 0% 0%

Infrastructure Services $472 (16%) (12%)

Core Maintenance $231 (25%) (13%)

Business Process Outsourcing

$270 (18%) (18%)

36% 35%

34% 36%

14% 14%

7% 7%9% 8%

0%

25%

50%

75%

100%

2009 2010

BPO

Core*

ISS*

ITO

SI

Services Revenue


Slide 152010 Technology

Technology Revenue $M 2010 Y/Y Ch Y/Y Ch*

TechnologyCustomer Revenue

$562 Flat 4%




Enterprise Servers $462 0% 1%

Other Technology $100 4% 22%


85% 82%

15% 18%

0%

25%

50%

75%

100%

2009 2010

OtherTechnology*

EnterpriseServers*

Industry

Geography

Slide 162010 Unisys Revenue Profile

Y/Y Ch

North America (13%)

Europe/Africa (9%)

Asia Pacific 0%

Latin America 7%

Y/Y Ch

Public Sector (8%)

Commercial (4%)

Financial (15%)

North America

44%

Europe Africa31%

Asia Pacific

13%

Latin America

12%

Public Sector

45%Commercial

33%

Financial22%

2010 Business Mix

Slide 172010 U.S. Federal Government Business

Revenue Y/Y

4Q10 (9%)

2010 (9%)

Homeland Security

34%

Civilian40%

Department of

Defense26%

TSA$150

TSA$117

$206 $213 $224 $199

$777$725

$0$100$200$300$400$500$600$700$800$900

$1,000

1Q10 2Q10 3Q10 4Q10 2009 2010

Federal Revenue$M

$927$842

Slide 18Cash Flow Comparison

$M 4Q10 4Q09 2010 2009

Cash Flow From Operations $187 $215 $337 $397

Cash Restructuring Payments $4 $5 $22 $61

Capital Expenditures $41 $52 $203 $201

Free Cash Flow * $146 $163 $134 $196

Depreciation & Amortization $61 $97 $251 $353

Cash Balance $828 $648

* Free cash flow = Cash flow from operations less capital expenditures

See Schedule C: GAAP to non-GAAP Reconciliations.

Slide 19 Balance Sheet & Capital Structure

• Remain focused on strengthening balance sheet and capital structure

• Made further progress in 2010

• Reduced Long-term Debt by $88M in 2010

• Reduced usage of U.S. accounts receivable securitization facility to zero throughout 2010 versus usage of $100M at December 31, 2009

• Completed several divestitures– U.S. check reader and sorter equipment business

– Health Information Management business

– UK-based Unisys Insurance Services Limited business

• Continued to rationalize geographic presence

Slide 20Update on Pension Plan and Cash Requirements

Cash Funding Requirements ($M) 2010 2011E

U.S. Qualified Defined Benefit Pension Plan $0 $0

Other Plans $82 $115

Total $82 $115

U.S. Qualified Defined Benefit Pension Plan

Return on Assets 14.69%

U.S. Discount Rate 5.68%

Worldwide P&L Impact ($M)

Total Pension (Income) Expense ($2.9) $36.0

Questions & Answers



Non-GAAP Financial MeasuresIn an effort to provide investors with additional information regarding the company’s results as determined by generally accepted accounting principles (GAAP), the company also discusses, in its earnings press release and/or earnings presentation materials, the following non-GAAP information which management believes provides useful information to investors.

Constant Currency – The company refers to growth rates at constant currency or adjusting for currency so that the business results can be viewed without the impact of fluctuations in foreign currency exchange rates to facilitate comparisons of the company’s business performance from one period to another. Constant currency for revenue is calculated by retranslating current and prior period results at a consistent rate. This approach is based on the pricing currency for each country which is typically the functional currency. Generally, when the dollar either strengthens or weakens against other currencies, the growth at constant currency rates or adjusting for currency will be higher or lower than growth reported at actual exchange rates.

Free Cash Flow – To better understand the trends in our business, we believe that it is helpful to adjust cash flows from operations to exclude amounts for capital expenditures, including investment in marketable software, capital additions of properties and capital additions of outsourcing assets. Management believes this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment.

EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is an approximate measure of a company’s operating cash flow based on data from the company’s income statement which is calculated as earnings before the deduction of interest expenses, taxes, depreciation, and amortization. Management believes this measure may be relevant to investors due to the level of fixed assets and related depreciation charges. This measure is also of interest to the company’s creditors, since it provides a perspective on earnings available for interest payments.

Schedule A: GAAP to Non-GAAP ReconciliationNet Debt$M 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

Long Term Debt (Including Current Maturities)

$1,060.6 $1,060.3 $1,061.2 $911.0 $911.7 $847.4 $836.4 $837.5 $824.0

AR SecuritizationUsage

141.0 120.0 130.0 118.0 100.0 - - - -

Subtotal $1,201.6 $1,180.3 $1,191.2 $1,029.0 $1,011.7 $847.4 $836.4 $837.5 $824.0

Cash 544.0 468.7 475.0 473.6 647.6 468.5 496.5 688.7 828.3

Net Debt $657.6 $711.6 $716.2 $555.4 $364.1 $378.9 $339.9 $148.8 ($4.3)

Schedule B: GAAP to Non-GAAP Reconciliation

EBITDA

$M 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

Net Incomefrom ContinuingOperations

(62.0) (28.5) 34.6 52.4 113.7 (17.3) 59.2 21.8 95.2

InterestExpense 20.8 21.8 21.2 25.4 26.8 26.5 25.3 25.0 25.0

Income TaxesProvision(benefit)

(21.9) 12.9 13.6 28.4 (12.6) 11.2 13.3 28.2 6.1

Depreciation & amortization 121.6 83.7 90.1 82.1 96.6 66.9 62.5 60.6 60.6

EBITDA $58.5 $89.9 $159.5 $188.3 $224.5 $87.3 $160.3 $135.6 $186.9

% of Rev. 4.8% 8.6% 14.8% 17.0% 19.4% 8.9% 15.5% 14.1% 17.9%

Earnings before Interest, Taxes, Depreciation and Amortization

Schedule C: GAAP to Non-GAAP Reconciliation Free Cash Flow

$M 4Q10 4Q09 2010 2009

Cash Provided by Operations $186.8 $215.0 $336.8 $396.8

Capital Expenditures (41.2) (52.1) (203.1) (201.3)

Free Cash Flow $145.6 $162.9 $133.7 $195.5

Documents

Fourth-Quarter & Full Year 2010 Financial Results...• Statements made by Unisys during today’s presentation that are not historical facts, including those regarding future performance,