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Confidential | © 2016 Unisys Corporation | All rights reserved. 1Peter Altabef | President & CEO
Unisys Annual Meeting of Stockholderswww.unisys.com/investor
April 28, 2016
Confidential | © 2016 Unisys Corporation | All rights reserved. 2
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, copies of which are available from the SEC and from the Unisys Investor website.
This presentation includes non-GAAP financial measures. The non-GAAP measures have been reconciled to the related GAAP measures and we have provided reconciliations within this presentation.
Confidential | © 2016 Unisys Corporation | All rights reserved. 3
Overview of Unisys and
2015 Results
Accomplishments in 2015
Focus for 2016
Confidential | © 2016 Unisys Corporation | All rights reserved. 4
Unisys at a Glance
143Years of offering
products & services
$3.0BIn 2015 revenue$
300government agencies worldwide
use Unisys solutions
> 60 million air cargo transactions per month are processed through Unisys
systems
Serves over half of the top 25 banks and 10 of the world’s top
insurance companies
Building one of the largest cloud-based, on-demand U.S. state government computing environments
>1,500Clients
130+Countries
>20,000Associates globally
18 of the top 25 global airlines rely on Unisys solutions
More than 90 of the Fortune Global 500 companies utilize Unisys services to improve productivity and customer satisfaction
Confidential | © 2016 Unisys Corporation | All rights reserved. 5
Full Year 2015: Unisys Revenue Profile
Confidential | © 2016 Unisys Corporation | All rights reserved. 6
Application Services
Cloud & Infrastructure Services
Security Services
End User Services
Business Process Outsourcing
Horizontal Service
Initiatives
ClearPath ForwardTM
Services
StealthTM
Technology Products
Corporate
Initiatives
Sectors
Government
Commercial
Financial Services
Initial Vertical
Target Industries
Justice, Law Enforcement, Border Security
Life Sciences / Healthcare
Travel / Transportation
Commercial / Retail Banking
Unisys Strategic Footprint
Unisys IP /
Software
Confidential | © 2016 Unisys Corporation | All rights reserved. 7
$M (excluding EPS) FY15 FY14 Y/Y Ch
Services Revenue
Technology Revenue
Total Revenue
$2,606
$409
$3,015
$2,786
$571
$3,356
(6%); 2% in CC
(28%); (22%) in CC
(10%); (2%) in CC
Operating Profit Margin
Non-GAAP Operating Profit Margin*
(1.8%)
5.8%
4.6%
6.8%
(640 bps)
(100 bps)
Diluted Earnings (Loss) per Share ($2.20) $0.89 NM
Non-GAAP Diluted Earnings per Share** $2.26 $2.36 (4%)
Free Cash Flow*** ($213) ($91) NM
Adjusted Free Cash Flow*** ($6) $92 NM
Financial Results
* Unisys recorded pretax pension expense during 2015 and 2014. During 2015, Unisys recorded a pretax charge in connection with cost reduction actions and other expense. In
order to provide investors with additional understanding of the company's operating results, these charges are excluded from the non-GAAP operating profit margin.
** Unisys recorded pension expense, net of tax, during 2015 and 2014. During 2015, Unisys recorded a charge, in connection with cost reduction actions and other expense. In an
effort to provide investors with a perspective on the company's earnings without these charges, they are excluded from the non-GAAP diluted earnings per share calculations.
*** To better understand the trends in our business, we believe that it is helpful to present free cash flow, which we define as cash flow from operations less capital expenditures.
Management believes this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. Adjusted
free cash flow provides free cash flow before the company’s pension contributions or cost reduction payments in an effort to provide investors with a perspective on the
company’s free cash flow generation before these items.
Confidential | © 2016 Unisys Corporation | All rights reserved. 8
2015: Establishing a Strong Foundation
Implemented industry-centric go-to-market and globally integrated delivery• Streamlined operating model and defined roles emphasizing accountability
Strengthened leadership• Highly capable and experienced team in place and aligned with our strategic focus
Reduced costs• Launched initiative to create competitive cost structure and rebalance global skill set
• Captured $100M in annualized savings in 2015 and executing toward $200M in 2016
• Enhanced operational and delivery efficiencies
• Reduced bureaucracy and layers
Identified and targeted investments for growth initiatives• Integrated our security solutions to drive growth
• Prioritized key investments across our intellectual property portfolio
Confidential | © 2016 Unisys Corporation | All rights reserved. 9
2015: Winning New Business
Commercial
• Merck named Unisys as global end-user
services provider
• Two U.S. air carriers highlighted flexibility and
functionality when selecting Unisys’ cloud-based
operations and accounting systems
• PBF Energy chose Unisys StealthTM to protect
critical systems and IT assets
Financial
• Lloyds Bank selected Unisys to integrate core
banking system and internet and digital platform
• Banco de Brasilia chose ClearPath ForwardTM
to support growth, enhance efficiency and
strengthen security
Public Sector
• New South Wales government designated
Unisys to design and deploy its digital
government transition initiative
• The European Union selected Unisys to
strengthen border control and data security
Federal
• The Department of Transportation selected
Unisys to provide cloud migration services
• U.S. Patent and Trademark Office named
Unisys to deliver implementation and best
practice consulting for IT Service Management
Confidential | © 2016 Unisys Corporation | All rights reserved. 10
2016: Focusing On Execution
Non-GAAP Operating Profit Margin: 7% – 8%2015: 5.8%
Adjusted Free Cash Flow: $160M – $200M2015: ($6M)
Revenue: $2,775M – $2,875M 6.3% – 2.9% Y/Y decline in constant currency vs. 2015
Increase profitability• Continue to expand cost reduction initiatives
and services delivery optimization
• Pursue higher margin services revenue mix
Improve free cash flow• Increase profitability
• Lower capital expenditures and develop
capital-light model
Strengthen go-to-market• Deepen vertical capabilities and expand
security solutions
• Further leverage Unisys IP and software assets
Deliver on our revenue guidance
2016 Guidance
Confidential | © 2016 Unisys Corporation | All rights reserved. 11
Thank you